goodsdominant

Goods-dominant logic (G-D logic) is a traditional framework in marketing and economics that treats tangible goods as the primary carriers of value and the central unit of exchange. In this view, value is primarily embedded in the product at the point of production, and economic activity centers on creating, manufacturing, distributing, and selling goods. Customers are typically seen as purchasers who obtain ownership and use of the product, with service largely regarded as supplementary or incidental.

Historically, G-D logic evolved from production- and transaction-focused models that emphasized efficiency, standardization, and mass production. It assigns key roles to suppliers and manufacturers, highlights product features, quality, cost, and reliability, and treats services as add-ons or after-sales support rather than fundamental drivers of value creation.

Core assumptions include: value resides in the product itself; ownership transfer is the principal mechanism by which value is realized; the market operates through price-mediated exchanges; and consumer knowledge or customization plays a subordinate role to the physical attributes of goods. Under this lens, value is realized through use of the goods and through the market’s ability to deliver reliable, standardized products at competitive prices.

In contemporary theory, G-D logic is frequently contrasted with service-ddominant (S-D) logic, which posits service and knowledge-based resources as the primary sources of value and conceptualizes goods as vessels for provisioning service. Critics of G-D logic argue that it underestimates customer co-creation, intangible assets, and network effects, and may overlook the importance of services, relationships, and customization in modern economies. Despite criticisms, G-D logic remains influential in manufacturing, logistics, and traditional product-centered marketing.