Service infusion is a major global business trend in manufacturing industries. This means that firm strategically increase their service orientation in order to increase profit margins. In parallel to this development; the service-dominant logic has emerged as arguably the most challenging recent scholarly marketing debate. Positioning service as dominant in marketing logic clearly challenges traditional practice; given that much of marketing theory originated from a goods-dominant view. However; there are several misconceptions of what this logic means; leading to erroneous managerial implications. Therefore; the objective is to (1) explain the distinct difference between a product-service transition and a transition from goods-dominant to service-dominant logic; and (2) discuss what these transitions mean for industry and academia. For example; a transition to service-dominant logic implies much more than an increased emphasis on the firm’s product-service systems; it implies a reframing of the purpose of the firm and its collaborative role in value co-creation.
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