Journal of Retailing 83 (1, 2007) 1–4 Six strategies for competing through service: An agenda for future research Ruth Bolton a,1 , Dhruv Grewal b,* , Michael Levy b,2 a W. P. Carey School of Business, Arizona State University, PO Box 874106, Tempe, AZ 85287-4106, United States b Babson College, Wellesley, MA, United States Accepted 30 November 2006 Marketing scientists and practitioners devote consider- able attention to services marketing strategies and tactics, but their focus recently has intensified with the dual realization that all businesses are service businesses and that “compet- ing through service” provides new perspectives and options for organizations that are striving to create value for cus- tomers and capture value for shareholders. This special issue of the Journal of Retailing examines the many challenges of “Competing Through Service.” Its publication is particularly timely because firms— especially retailers—currently face significant competitive challenges. In the modern economic environment, markets are characterized by “fuzzy” boundaries that allow competi- tors to penetrate from adjacent market spaces. For example, advances in technology have led to a proliferation of new communication media and retail channels. Many firms have reacted by focusing on increased productivity and lower costs (e.g., efficient consumer response) rather than innovations that create value for customers. However, advances in tech- nology also offer new opportunities for firms to create such value for customers that would give them a differential advan- tage that is difficult for competitors to imitate. Shifting market demographics and consumer tastes, both locally and globally, serve to magnify these opportunities. This special issue is entitled “Competing Through Ser- vice” because firms that leverage service can build strong relationships with customers that will generate barriers to competition, increase customer loyalty and switching * Corresponding author. Tel.: +1 781 239 3902; fax: +1 781 239 5020. E-mail addresses: ruth.bolton@asu.edu (R. Bolton), dgrewal@babson.edu (D. Grewal), mlevy@babson.edu (M. Levy). 1 Tel.: +1 480 965 2322. 2 Tel.: +1 781 239 5629. costs, and make market activities more efficient. How- ever, markets change, so firms must be attentive and innovative in creating and delivering value. In this intro- duction to the special issue, we consider six strategies for competing through service: Leveraging fundamental sources of value that influence shareholder wealth, manag- ing customers’ perceptions of the service value proposition, customizing pricing for profitability, ensuring service excel- lence in implementation, planning for service recovery, and managing the holistic service experience (including the servicescape). Co-create value linked to shareholder wealth Over time, our understanding of the nature of services has shifted to encompass virtually all exchanges. Services tra- ditionally were defined as deeds, performances, or actions (Berry-Leonard, 1980), but the lead article, “Competing Through Service: Insights from Service-Dominant Logic,” articulates a new and broader definition of service as “applied knowledge for another party’s benefit” (Lusch et al. 2007). This article emphasizes that firms co-create value with customers and promotes a “market with” philosophy. The only true source of sustainable competitive advantage is knowledge—that is, the operant resources that make the service possible. Superior collaborative competency leads to market success because it leverages a firm’s ability to absorb information and knowledge from the environment, customers, and its value networks, so firms can adapt to dynamic and complex environments. According to Lusch et al. (2007) service-dominant logic, retailers should concentrate simultaneously on the service and merchandise aspects of their business. Berry et al. 0022-4359/$ – see front matter © 2006 New York University. Published by Elsevier Inc. All rights reserved. doi:10.1016/j.jretai.2006.11.001