Service-dominant logic: reframing category captainship and retailer category management

Abstract

PurposeThe category captain system (CC) of retailer category management (RCM) is established, accepted, and widely adopted. The paper empirically assesses the application of this system in building collaborations between retailers and their suppliers to generate growth following COVID-19. This study applies service-dominant logic (S-D logic) to RCM and establishes the current ‘practical’ application of the five axioms of S-D logic within the CC system.Design/methodology/approachThe researchers adopted a qualitative research design which examined both category managers and retail buyers currently involved in the CC system, using thematic analysis of transcripts from 25 practitioner participants.FindingsThe study reveals service is not a fundamental basis of exchange in the CC system. Value is uniquely, independently, and separately created by the retailer that significantly restricts the scope of the category service eco systems and the opportunity to innovate through value co-creation.Practical implicationsSignificant change is required to realise value co-creation and innovation applying S-D logic to RCM. The study indicates there is potential to start this change by the formalisation of wider informal category relationships between non-captain suppliers and retailers through consumer insight technology, and by aligning suppliers and retailers to make more effective and sustainable trading decisions.Originality/valueThe study indicates that certain elements of the CC system proposed by the literature's games-based theoretic models, are not applied in practice. The lived experiences of practitioners suggest informal ways of by-passing the formal system using S-D logic.

The role of value co-creation on retailer loyalty and omni-channel shopping frequency

“…Customer participation and customer citizenship behavior in VCC can support retailers' improvement in their omni-channel retailing, product quality (Damali et al, 2021), and customer experience (Lee et al, 2019). Customers' feedback to omni-channel retailers on services and products through their interaction ensures that the retailer can access any necessary information (Quach et al, 2020) to offer customized services and products (Hallikainen et al, 2019) and provide VCC through service exchange (Benson et al, 2023). The customer's willingness to communicate with a particular retailer enhances the frequency of visits to that retailer (Hamilton et al, 2016).…”

“…, 2020) to offer customized services and products (Hallikainen et al. , 2019) and provide VCC through service exchange (Benson et al. , 2023).…”