Impact of co-production on consumer perception of empowerment

Abstract

Service-dominant logic emphasises the customer role as co-creator of value. However, there is little empirical evidence of how customers perceive and experience value co-creation from participation in service co-production. The internet and interactive websites have increased the potential for consumers to engage in co-production through increased self-service which is acknowledged to contribute to consumer empowerment. The paper explores empirically the impact of service co-production via web technology on consumer perceptions of e-empowerment. Findings suggest that e-empowerment is multidimensional comprising empowerment and disempowerment dimensions. The paper makes several contributions to services theory. Variable co-production leads to different types of empowerment/disempowerment. Value-in-use can be perceived as process value and outcome value. The findings challenge the assumption that co-production naturally leads to co-creation of value. Co-production can be a double-edged sword: for some it can be value-enhancing, whereas for others it can be value-destructing. The paper notes several implications for practice.