This article discusses the argument put forward by Vargo and Lusch (2004) that a new
service dominant logic is emerging within marketing. Taking on this new service
logic means our understanding of marketing has developed from a focus on exchange of
goods to a broader focus on exchange of services. However, in seeking to elaborate
on Vargo and Lusch's argument, limitations are highlighted and consequently
their eight foundational premises are challenged at an ontological level. While
Vargo and Lusch recognize the evolution of marketing towards a service orientation,
their understanding of this and what it means for marketing continues to be founded
on the same rationalistic assumptions as the traditional goods-centred logic. In
recognizing the emergent service orientation, marketers and researchers need to
question their underlying assumptions and seek to understand services as constituted
in the customer's experience.
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