It is rather undisputed that in recent times the economy is to a large extent a service - and maybe even more - a knowledge driven one. The service-dominant logic concept points to the pervasive service nature of business concepts and transactions and their dominance. This would suggest a high level of openness to innovative service solutions in general. The authors focus on the ‘Total Cost of Ownership’ concept, the obstacles from the customer’s point of view and the long and uncertain way of final adoption. The paper advances research in three ways: First, the authors connect the phenomenon of a sluggish adoption of innovative hybrid business models with servicedominant logic reasoning. Service-dominant logic thinking opens the door for a better understanding of imperfectly designed business models. Second, they shed additional light on organizational purchasing decisions in the context of cognitive biases. Third, they give empirical evidence to support their viewpoint.
Keywords: Service innovation, Total Cost of Ownership, service-dominant logic, cognitive biases.