Goods verses Services

Question 1

What is a Service-dominant logic (…)?

Answer 1

SDL is a theoretical framework in marketing and business that shifts the focus from traditional good-centric views of value creation to a service-oriented perspective, developed by Vargo and Lusch in 2004.

Question 2

What is GDL?

Answer 2

GDL is a traditional marketing perspective that emphasises tangible products, embedded value, and discrete transactions. This approach has been the foundation of classical economy and marketing theories. This framework emphasises the importance of tangible goods, viewing them as the primary units of economic exchange and value creation Vargo and Lusch in 2004.

Question 3

What are the features of GDL?

Answer 3

・ treating Intangible goods

・co-create value with customer

・Discrete transaction

Question 4

What are the theories of national advantage?

Answer 4

・Ricardo’s comparative advantage

・Porter’s Diamond Model

Question 5

What is Porter’s diamond model?

Answer 5

Michael Porter. introduced factors such as factor conditions, demand conditions, relate and supporting, industries, and firm strategy, structure, and rivalry. These factors interact dynamically, suggesting that advantages can shift as conditions change.

Question 6

What are the reasons for the transience of national advantage?

Answer 6

・Technological advancement
・Globalization
・Shifts in consumer preferences
・Economic policies and trade agreements
・Reasource depletion
・Human capital and education

Question 7

What are the social impacts of industrial decline?

Answer 7

・Unemployment
・Economic decline
・Social dislocation

Question 8

What is Mercantilism?

Answer 8

・Originated in the 16th to 18th centuries.

・Suggests that a country’s wealth is measured by its stock of precious metals (gold and silver).

・Advocates for a positive trade balance (exports greater than imports) through protectionism and colonial expansion.

Question 9

What is Absolute Advantage?

Answer 9

Proposed in the late 18th century by Adam Smith.

Suggests that countries should specialize in producing goods where they have an absolute advantage (can produce more efficiently than other countries) and trade with others to benefit from specialization.

Question 10

What is comparative advantage?

Answer 10

It posits that countries should specialize in producing goods with a lower opportunity cost.

While this model explains trade patterns effectively, it assumes that advantages remain static, which is rarely true.

Question 11

What are the reasons for the impermanence of national advantage?

Answer 11

・Techonological Advancements
・Shifts in Resource Availability
・Globalisatioin and Trade Liberalization
・Changes in consumer perferences
・Economic and Political Factors

Question 12

What are the features of SDL?

Answer 12

・focusing on intangible goods
・Co-create value
・Context-dependent

Question 13

What are the components of political economy?

Answer 13

【Legal system】
・Common law
・Civil law
・Theocratic law
・Market economy law = combination of common law and civil law
・Contract
・Regulatory environment

【Economic system】
・Market economy
・Command economy
・Mixed economy

【Political system】
・Collectivism
・Individualism
・Democracy
・Totalitarianism