Marketing Perspective Service Dominant Logic

Question: Describe about the Marketing Perspective for Service Dominant Logic. Answer: Service Dominant Logic The approach of Service Dominant Logic (SDL) came up in 2004 that is considered as a fantastic principle for marketing a product (Lusch and Vargo 2012). SDL believes in co-creation of value rather than the embedded value concepts. The logic helps in making the company market its products in a better manner (Lusch and Vargo 2012). For example, the largest car sharing or car club company of UK provides the service of an automobile company (Streetcarsmanchester.co.uk 2016). Following the SDL, it is not just a car rental service, but the customers are relieved from the burden of monetary expenses such as maintenance cost. It offers the convenience of owning a car without having the hassles of servicing, repair or parking. I engaged with this company for a few days while I was in Manchester. I had the car booked for six hour in a day but it costed me approximately 42.82 (Armstrong 2015). The car was not suitable for me as I usually had long trips and I needed the car to drive out of London (Armstrong 2015). The marketer could have involved different pricing techniques as the service is suitable for people who have to make short trips within the city for grocery shopping or other local trips. The company could have adopted multi-party pricing strategy for short trips and long-trips. The car club follows the hourly car hire prices. It could implement the distance based pricing strategy that could be put as an option for the customers (Lusch and Vargo 2012). Street Car provides mobility services for co-creating value and offers the convenience of owning a car without having paid for the hassles faced. A strong value proposition can be created by clean cars and offering great services at a discount (Wang et al. 2016). During high demand periods, Street Car can consider charging higher prices and low prices during low demand. With this robust pricing strategy, Street car would not just co-create value, but also compete with other taxi and car hiring companies. Street Car must not follow one- size-fits all prices (Mohammed 2013). Dynamic pricing strategies could have made my experience better. I paid high prices for hiring the car due to which I was disappointed for availing the services. If the company followed dynamic pricing model, I would have paid a lesser price than what I had to actually pay for (Lusch and Vargo 2012). Moreover, I would be more loyal to the company and consider engaging with them. My attitude and behavior would be positive as I would have gotten a more personal experience. My satisfaction level would be high and I would definitely be a loyal customer if the value was created in a better manner (Lusch and Vargo 2012). Conclusively, service dominant logic not just sells products, but co-creates value for its customers. It helps in gaining the marketers a new perspective for creating value to the consumer. The firms can think of more opportunities that help in creating value through the services. References Armstrong, A., 2015.Enterprise drives off with City Car Club. [online] Telegraph.co.uk. Available at: https://www.telegraph.co.uk/finance/newsbysector/transport/11508736/Enterprise-drives-off-with-City-Car-Club.html [Accessed 13 Aug. 2016]. Lusch, R. and Vargo, S., 2012.The service-dominant logic of marketing. Armonk, N.Y.: M.E. Sharpe. Mohammed, R., 2013.Ubers Price Gouging Is the Future of Business. [online] Harvard Business Review. Available at: https://hbr.org/2013/12/ubers-price-gouging-is-the-future-of-business [Accessed 13 Aug. 2016]. Streetcarsmanchester.co.uk, 2016.About-us | Street Cars. [online] Streetcarsmanchester.co.uk. Available at: https://www.streetcarsmanchester.co.uk/pages/about-us [Accessed 13 Aug. 2016]. Wang, X., He, F., Yang, H. and Oliver Gao, H., 2016. Pricing strategies for a taxi-hailing platform.Transportation Research Part E: Logistics and Transportation Review, 93, pp.212-231.