Marketing Strategy Development Based on Service-Dominant Logic Theory by Vargo and Lusch: Empirical Evidence from the Tourism Industry in Bali, Indonesia

Abstract

The tourism industry represents one of the most dynamic and competitive service sectors globally, demanding sophisticated marketing frameworks that go beyond traditional product-centric approaches. This study investigates the development and application of marketing strategies grounded in Vargo and Lusch's Service-Dominant (S-D) Logic theory within the context of the tourism industry in Bali, Indonesia. The S-D Logic paradigm, which repositions value creation as a co-production process between service providers and customers, offers a compelling theoretical lens for understanding how tourism enterprises can sustain competitive advantages in volatile market environments. Using a mixed-method approach combining structured interviews, questionnaires distributed to 215 tourism business operators, and content analysis of strategic documents, this research identifies critical foundational premises of S-D Logic — specifically operant resources, value co-creation, and service ecosystems — as central pillars of effective tourism marketing strategy. Findings indicate that tourism businesses that systematically embed S-D Logic principles into their marketing practices demonstrate significantly higher levels of customer engagement, repeat visitation, and brand loyalty compared to those adhering to conventional goods-dominant approaches. The study further reveals that digital platforms serve as key enablers of co-creation activities, and that relational marketing practices aligned with S-D Logic principles substantially improve service quality perceptions. The paper contributes to the emerging literature by providing a structured, empirically validated framework for tourism marketing strategy development informed by S-D Logic, with practical implications for policymakers, destination management organizations, and tourism enterprise managers.

Keywords: Service-Dominant Logic, tourism marketing, value co-creation, Bali, marketing strategy, service ecosystems, operant resources