PERSPECTIVES ON CUSTOMER-INTEGRATION FACILITIES, TRANSFORMATION AND USE (CI-TFU) FRAMEWORK, VALUE CREATION AND SERVICE-DOMINANT (SD) LOGIC: CRITICAL INSIGHTS

Author's Name: Dr.Revenio C. Jalagat, Jr. & Almalinda M. Jalagat
Subject Area: Social Science and Humanities
Subject Business Management
Section Research Paper

Keyword:

Service Dominant, Customer-Integration Facilities, Transformation and Use, Goods Dominant, Co-production


Abstract

This study primarily aimed at investigating the concept of Customer-Integration Facilities, Transformation and Use (CI-TFU) framework as opposed to Service Dominant (SD) logic. Furthermore, it evaluates the applicability of these two perspectives in marketing products and services through citing examples as justifications of its applicability. It also assess the strengths and weaknesses between these two paradigms. This study utilized secondary data in its analysis and basically it utilized the published research article of Vargo and Lusch’s titled “Service-dominant logic: reactions, reflections and refinements” in 2006. Further analysis revealed that SD logic emphasized more on collaborative efforts not only between the producers and customers but all the actors in the social network exchange. It strongly posits that, products are only considered input and serviceability are far more important. In contrast, CI-FTU was found to deal mostly on co-production or customer integration in production processes but do not take into consideration serviceability, hence; it is an extension of the Goods Dominant (GD) logic. In conclusion, there is irreconcilable difference between the SD logic and CI-FTU considering that their fundamental premises are totally different. The concept of value creation is also perceived differently between these two paradigms and while SD logic focused on many social actors, CI-FTU emphasized on only one actor, an evidenced that these two are different from each other.

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