From goods-dominant logic to service-dominant logic? Service, service capitalism and service socialism

Abstract

Vargo and Lusch (V&L) have claimed that there was a movement from a goods-dominant logic to service-dominant logic in marketing. We problematise this narrative via attention to multiple strands of service discourse from the late 19th to mid-20th century. Our focus begins with the promotion of service in the economics literature. A close reading of a publication important to V&L’s account reveals the politics associated with the rise of service discourse. This is elided in their work. Our genealogy subsequently engages with the publications of A. F. Sheldon. His views are unpacked and links to the Rotary Club explicated. The evidence indicates that service discourse was relational in orientation and ethically driven, with the intertwined themes in Sheldon and Rotary’s publications generalised into an emergent ‘theory of society’ that had applicability around the world. We term this discursive formation ‘service capitalism’. This perspective was contested by a ‘counter manoeuvre’ labelled ‘service socialism’. Service socialism differed fundamentally from Sheldon’s axiology, Rotary’s service capitalism or the midpoint view detailed by Edward Filene due to its focus on the deleterious impact of the profit motive, the significance of ‘use value’, the reorientation from ownership to access-based consumption and attention to human welfare and economic security. Service socialism, we conclude, generates insights that require engagement today.