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In marketing, "radicals" and "evangelists" often urge us to adopt a new perspective, commonly to replace the perspective suggested by the 4 Ps framework (product, price, promotion, place) by, say, a systems perspective, a behavioral perspective, or even a "sensory perspective" ([6] Hill, 2003). In fact, in Does Marketing Need Reform? ( [16] Sheth and Sisodia, 2006), several writers suggest new perspectives for marketing. However, it is the "service perspective" advocated by [21] Vargo and Lusch (2004) that has taken center stage. The Vargo and Lusch exposition of the service perspective was a lead article in the Journal of Marketing with eminent marketing academics offering their encomiums and sagacious approval. Since services are estimated to be over 60 percent of the gross national product in the Western democracies, the inference is that service marketing is paramount and should be recognized as such. The article has had considerable impact among marketing scholars, particularly in the USA. However, we believe its promotion as the single best perspective for marketing is regressive. The purpose of this article is to show why we believe this to be so. The article can be viewed as a conceptual analysis of the Vargo and Lusch paper. Conceptual issues are crucial. As Bennett (a neuroscientist) and Hacker (an Oxford philosopher) point out:
Conceptual questions antecede matters of truth and falsehood. They are questions concerning our forms of representation , not questions concerning the truth or falsehood of empirical statements ([1] Bennett and Hacker, 2003, p. 2).
Services ill-defined
Our first criticism lies in the definition of services "as the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself" ([21] Vargo and Lusch, 2004, p. 2). As the application of specialized competences characterizes the manufacture and marketing of goods as well as services, the approach is intended to be all-encompassing. However, traditionally, when we have spoken of "services" we talk about functions performed, as we do with products. Even when referring to service industries, like transportation, we think in terms of function performed. But under the Vargo and Lusch definition the focus is clearly on activities performed, not function. Yet function is what distinguishes markets, not activities. This is a real...