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2008; Vargo and Lusch, 2004). Similarly, customers may obtain additional economic value
from the focal service provider by engaging in co-production and thus receiving special
treatment benefits from their service providers (Chan et al., 2010). The co-production
process that occurs between employees and their customers may generate social benefits for
both parties (Fleming et al., 2005). In addition, co-production provides customers with an
opportunity to participate in and assess the service process (Menon and O'Connor, 2007). As
a result, customers and service providers can increase their confidence benefits.
Co-production can create relational benefits for customers who, in turn, make purchase
decisions. These benefits are considered the basis for relationship continuity and for driving
relational behavioral outcomes (Hennig-Thurau et al., 2002; Palmatier, Dant, Grewal, and
Evans, 2006). Consistent with Lacey et al. (2007), special treatment benefits influence share
of wallet. This is because customers prefer to increase their share of wallet in firms that offer
them special treatment benefits. In line with Mägi (2003), social benefits can enhance share
of wallet as they add emotional value to the experience of customers, which in turn enhances
their willingness to increase their share of wallet in a particular firm. The results of this study
are also consistent with the study of Hennig-Thurau et al. (2002), who emphasize that
confidence benefits can lead to valuable long-term relationships between service providers
and customers. These benefits may enhance the knowledge of customers with regard to the
services that are being offered to them, which also encourages them to increase their share of
wallet.
5.3 Theoretical Implications
This study builds on S-D Logic and addresses a gap in the understanding of the
antecedents and consequences of co-production. Essentially, the core concept of S-D Logic
includes supporting the value creation of customers, in which the suggested value is ideally
transformed into real benefits (Grönroos and Ravald, 2011). For potential benefits to be
achieved, co-production with customers is necessary, as it constitutes essential knowledge
and skills on which the realization of benefits depend (Gummesson and Mele, 2010;
Grönroos, 2011; Vargo and Lusch, 2008). In other words, S-G Logic describes how
customers, employees and other actors become effective and efficient resource integrators in
value co-creation. In the present study, asset specificity can be transformed into special
treatment benefits, quality of customer interaction can be transformed into social benefits,
and decision-making uncertainty can be transformed into confidence benefits (see Figure 2).
Special treatment benefits dedicate significant relationship-specific assets or idiosyncratic