Why consumers use and do not use technology-enabled services

1. Article 25 Why consumers use and do not use technology-enabled services By R. H. Walker and L. W. Johnson Presented by (student name)

2. Objective • To establish empirically reasons why people use, or choose not to use, three types of technology-enabled service: internet banking, telephone bill-paying, and internet shopping services.

3. Previous Work • Bitner, Ostrom, and Meuter (2002) • In companies haste to introduce self-service technology, implementation and management of the service can be overlooked • Curran, Meuter and Surprenant (2003) • There are at least two forces that can move people to use a technology in the service encounter, one being the consumer's attitude toward employees (both individual and global attitude toward the service firm) and the second being the attitude toward Self Service Technologies (both specific SST of interest and global attitude toward service technologies). • Dabholkar and Bagozzi (2002) • Consumers with high self-efficacy are more likely to try new things. Marketers should heavily promote the fun aspect of using their technology-based self-service. Any claims of fun should be backed up by designing the technology-based self-service so that it is indeed enjoyable for consumers.

4. Previous Work • Meuter, Ostrom, Roundtree and Bitner (2000, 2003) • Grouped Self Service Technology “incidents” to determine sources of satisfaction and dissatisfaction with SSTs. Customers were more likely to credit themselves with a satisfactory transaction, whereas they blamed the technology when something went wrong. • Respondents with higher levels of Technology Anxiety (TA) use fewer Self Service Technologies. Technology anxiety is a better, more consistent predictor of SST usage than are demographic variables. TA was found to influence overall levels of satisfaction, intentions to use the SST again and the likelihood of participating in positive word-of-mouth for those consumers who had an initially satisfying experience

5. Previous Work • Walker, Craig-Lees, Hecker and Francis (2002) • An individual's capacity and willingness to use technology in service encounters does have a fundamental relationship with their adoption behavior, either voluntary or involuntary. Marketing strategies can be used to motivate people to adopt technology-facilitated services and convert non-voluntary users.

6. Methodology • Short questionnaire • 360 face to face interviews • Five point Likert scale • Refined to 24 items divided into five categories • Capacity • Perceived Risk • Relative Advantage • Personal Contact • Personal Back-up

7. Methodology

8. Methodology • Questions Asked: • How often do respondents use internet banking, telephone bill-paying, and internet shopping? • Willingness to try new things?

9. Factors that influence the use of technology-enabled services • Willingness The adoption and use of technology-enabled services. • May be voluntary or involuntary

10. Influencing Factors • Capacity Personal capacity reflects the extent to which prospective users believe they are sufficiently able or equipped to engage with, and use, technology-enabled services successfully.

11. Influencing Factors • Perceived Risk The extent to which technology-enabled services are perceived to be sufficiently safe, secure, and reliable to use. • Technical performance or functional reliability • Personal privacy and security

12. Influencing Factors • Relative Advantage Perceived benefits and the extent to which these services are perceived to offer relative advantages over more traditional face-to-face encounters.

13. Influencing Factors • Personal Contact The extent to which personal contact is perceived to be needed or preferred.

14. Influencing Factors • Personal Back-up The desire for personal contact and interaction exists only in particular circumstances as a backup or safety net.

15. Results Internet information services were used most by those surveyed. Internet shopping services, telephone bill paying, and reservation services were among the least used.

16. Conclusions • Data confirms the popularity of the internet for browsing and information purposes • A large number of people surveyed remain to be converted to regular users of these media for banking and shopping purposes.

17. Conclusions • Willingness to try new things has no significant impact on the usage of telephone bill-paying, whereas it does have an impact on both internet banking and shopping. • Telephone bill-paying is considered “old technology” while internet based technology is relatively “new” • Telephone medium is used for relatively straightforward bill-paying and other financial purposes.

18. Conclusions • Researchers believe that further research is required with the aim of distinguishing between beliefs, attitudes, and behavior in respect to particular services being delivered in a variety of different ways • Skewed demographic (<40 yrs. Old) • Explore in more detail the nature of attitudes and use across different populations (including other demographics)

19. Lessons for Service Managers • This research can help customer service providers better address customer’s needs • Usage depends on self-perceived ability and a willing attitude • Do not assume that customers are able to develop these traits • Providers should build consumer confidence in, and enthusiasm for, these services • Self tutorial guides on CD • Better designed websites • Reward trial, adoption, and regular patronage