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Hot Topic:
Conceptualising the Service Brand &
Broadening the Concept of Brand Equity
Professor Rod Brodie
University of Auckland Business School
Frontiers in Services Conference
June2006
University of Queensland
Australia
MSI Top Research Priority
Towards Service Centric Thinking
•
Goods vs. Services is not the point (CMP Research)
• 80% of all firms describe their primary market offer
having an emphasis on service
• all firms differentiate on the basis of their service offer
• Vargo & Lusch’s “New Logic”
– From Goods-Centred Exchange
• tangible (operand) resources, embedded value and
transactions
– To Service-Centred Exchange
• intangible (operant) resources, the co-creation of value
and relationships
• How does this change thinking about marketing &
branding?
Evolving To a New Frame of Reference
Lusch & Vargo (2004)
To Market
(matter in motion)
Market To
(management of
customers &
markets)
Through 1950
1950-2005
Market With
(collaborate with
customers & partners
to produce &
sustain value)
Future
“To Market”
Concepts
Transitional
Concepts
“Market With”
Concepts
Goods
Services
Service
Products
Offerings
Experiences
Feature/attribute
Benefit
Solution
Value–added
Co–production
Co–creation of value
Profit maximization
Financial engineering
Financial feedback/learning
Price
Value delivery
Value proposition
Equilibrium systems
Dynamic systems
Complex adaptive systems
Supply Chain
Value–Chain
Value–creation
network/constellation
Promotion
Integrated Marketing
Communications
Dialog
Product orientation
Market orientation
Service orientation
Lusch & Vargo (2006)
Multifaceted Nature of Brand
•
Consumer based concepts
– identity, logo, image, symbol, expression, and personality
•
Organisational concepts
– positioning statements, cluster of values, vision, and risk reduction
•
Relational concepts
– promises, trust and commitment, relationships, and experience with
customers and other stakeholders
•
Financial perspective
– a resource or asset that creates value
– above the water line (15%)
• what is visible about the brand to the consumer i.e. the logo and
name
– below the water-line (85%) are the unseen value-adding processes
Integrating the Research: Role of “the Brand”
in Co-creating Value
Consumers, Customers
& Stakeholders
INTERACTIVE
‘co-creating
meaning and
experience ’
Employees
EXTERNAL
‘making promises’
through value
propositions’
Brands ( & Company)
‘facilitating, mediating & realising
the co-creation of value’
Organisation
INTERNAL
‘enabling the fulfillment created by promises ’
Is there a Missing Fundamental Premise in
the SD Logic?
Service brands
facilitate and mediate the marketing processes used to
realise the experiences & the co-creation of value
between the organisation & its customers &
stakeholders)
provide sign systems that symbolise meaning in the
marketing network,
hence are a fundamental asset or resource that a
marketing organisation uses in developing service-based
competency and hence competitive advantage.
But does this overstate the case?
– danger of becoming too brand centric and this detracts
from customer centric logic (Rust al 2005)
Synergistic Advantages from a Multi-method
Approach
Quantitative and qualitative inquiry can support and inform each other.
Narratives and variable-driven analyses need to interpret and
inform each other. Realists, idealists and critical theorists can do
better by incorporating other ideas than by remaining pure. Think of
it as hybrid vigor. (Huberman & Miles 2002, p396)
“If my thoughts are at least close to the mark, researchers in
marketing are entering the age of ‘pluralism’… “
scientist)
(Green 2001 – marketing
“When consumer researchers discuss multi-paradigm research a visual
metaphor usually dominates, notably that of overcoming perspectival
limitations to create more comprehensive frameworks.”
Thompson, Arnould & Stern 1997 – postmodernists)