This article elaborates and extends the Vargo and Lusch (2004a) service-dominant (S-D) logic thesis. Three linked exchange-enablers and their potential for improving value-in-use are discussed: first, relationships to give structural support for the creation and application of knowledge resources (relating); second, communicative interaction to develop these relationships (communicating); and third, the knowledge needed to improve the customer's service experience (knowing). These activities are integrated within an augmented S-D exchange model, and the implications for co-creating value are discussed. Finally, the argument is put that a customer's value-in-use begins with the enactment of value propositions, and the development of reciprocal value propositions is discussed in the context of the notion of sustainable betterment.

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204 pp, ISBN 0 7506 0258 9, price S25.00.

In this article, dialogue is explored as an interactive process of learning together. This process is often spontaneous and unruly but bounded by a serious intent to reach mutual understanding. Also, the concept of relationship specific knowledge is introduced to explain how trust between business counterparts develops through dialogue in iterative cycles of learning. Dialogue also brings opportunities for generating new business knowledge, within the firm and between firms, in the form of creative solutions to marketing and supply problems. In this way, mutual value in buyer‐supplier exchanges is enhanced.

This article explores the structural relationships through which internal marketing can create value for an organisation, its customers and its employees. It is argued that internal marketing requires a relationship-mediated approach, where planned phases of learning activity in volunteer groups generate new internally valid knowledge critical to the improvement of external market performance. Thus internal marketing is defined as a relationship development strategy for the purpose of knowledge renewal. First, the author presents a typology of knowledge exchange patterns within organisations on which internal marketing is based. Second, a four-phase internal marketing process grounded in case research is presented. Next, the structure of relationship development for internal marketing is described, one which mediates knowledge transfer between the individuals involved and to their organisation as a whole. Finally, the paper offers five propositional statements in support of a relationship-mediated theory of internal marketing.