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Creating value-in-use through marketing interaction: the exchange logic of relating, communicating and knowing

University of Otago, New Zealand

Richard J. Varey

University of Waikato, New Zealand

This article elaborates and extends the Vargo and Lusch (2004a) service-dominant (S-D) logic thesis. Three linked exchange-enablers and their potential for improving value-in-use are discussed: first, relationships to give structural support for the creation and application of knowledge resources (relating); second, communicative interaction to develop these relationships (communicating); and third, the knowledge needed to improve the customer's service experience (knowing). These activities are integrated within an augmented S-D exchange model, and the implications for co-creating value are discussed. Finally, the argument is put that a customer's value-in-use begins with the enactment of value propositions, and the development of reciprocal value propositions is discussed in the context of the notion of sustainable betterment.

Key Words: communicative interaction • dialogue • exchange • knowledge renewal • reciprocal value propositions • relationship development • service-dominant logic

Marketing Theory, Vol. 6, No. 3, 335-348 (2006)
DOI: 10.1177/1470593106066795


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