Consumer Evaluations of New Technology-Based Self-Service Options By Pratibha A. Dabholkar Presented by Sarah Hettervik Article 26

Objectives Focus on “customer participation” from the view of the customer in regards to new technology-based self-service options instead of management’s viewpoint. Focus on the customers’ expectations evaluation by looking at two models that can be applied to customers’ expectations – Attribute-based model – Overall affect model

Two Alternative Models The Attribute Based Model: Based on a cognitive approach to decision making where consumers would evaluate attributes associated with the technology-based self-service option to form expectations of service quality. The Overall Affect Model : The overall affect model focuses on any preconceived notions a customer may have to determine the expectation of the service.

Previous Research Cont. (Landgeard et al.,1981) – Found that time, effort, and control were very important to those who preferred the self-service option. He also found that people who like working with machines were prone to be accepting of the self-service option. He believed that interaction with another person to be influential even though he failed to find the need for it. (Davis et al., 1992) – Measured enjoyment using three seven point semantic differentials items based on the words “enjoyable”, “Fun”, and “pleasant”. (Ledingham, 1984) – He found that time was important to people using online banking and shopping. He felt the loss of social interaction in self-services could not compensate for the time that would be saved without the interaction.

Previous Research Cont. (Gronroos,1984) – Suggested measurement of service quality has to be defined from the customers POV and must be relevant to the situation where it’s measured. (Eroglu,1987) – He did extensive research on the realism and testing of scenarios. (Parasuraman et al., 1988) – Identified that reliability is an important determinant to service quality. (Jacob and Olson,1985) - Suggested that subjective quality (customer evaluation) is more related to sales performance, which deserves more attention than objective quality (management).

Methodology A questionnaire and scenario approach were taken when conducting the study. – The scenarios and questionnaires were about customers using a touch screen to order a meal in a fast food restaurant (technology-based self- service), or ordering verbally. – A sample of 505 College students were selected. This is due to the fact that most students are familiar with touch screens (ATMs) and are also critical consumers to the fast food business.

Methodology Cont. Several versions of the scenario were pre-tested for realism before deciding upon the most simplest version. The topics on the questionnaire asked about expected service quality, intentions to use touch screen, manipulation and realism checks and went through The Attribute Based Model and The Overall Affect Model: Attribute Based Model – Expected speed of delivery – Expected ease of use – Expected reliability – Expected enjoyment – Expected control Overall Affect Model – Attitude Toward Using Technological Products – Need for Interaction with Service Employee

Scenario Appendix A. Stimulus for questionnaire A. 1. Situation You are in a fast food restaurant for lunch. Approaching the counter, you find that you have two ordering options: you may order verbally as usual or use the newly installed touch screen machine. (The touch screen is located on the counter and has directions for use and the complete menu on the screen itself. Ordering is done by touching the appropriate boxes on the screen and items can be re-entered if you make a mistake or change your mind.) Both options have the same menu at the same prices and allow you to personalize your order (e.g., 'hold the mustard,' etc.). In each case you pay the cashier after placing the order and the cashier hands you the food you ordered when it is ready. You estimate that the waiting time for using the touch screen to order will definitely be longer (shorter) than the waiting time for placing a verbal order. Note: The last sentence in the scenario is used to manipulate the treatment, waiting time, and is omitted for the control group.

Results 68.9 percent of students said they would prefer the touch screen to order fast food. The study showed that control and enjoyment were significant determinants of service quality. Control enhanced consumer evaluations and impacts the intentions to use the option. Enjoyment enhanced customer evaluations of this option and would directly increase intention to use the option when there is a shorter waiting time. Ease of use was also a key determinant in service quality, but only for high waiting time and control groups. A shorter waiting time would not mean ease of use was critical in evaluating service quality.

Results Cont. Speed of delivery and reliability had no impact with evaluations or service quality under any conditions. The Overall affect Model results reflected from past research that attitudes towards technology had a positive effect on evaluation of technology-based self-service options. The need for interaction with employees was also an important determinant of service quality.

A Test of the Attribute-Based Model

A Test of the Overall Affect Model

Conclusion This study shows how much information can be attained by focusing on the consumers perspective instead of only managements perspective. This can lead to decisions made by service firms on what activities potential customers are willing to participate in. Consumers seem to favor The Attributed-Based Model when creating evaluations of service quality for technology-based self-service options. This model helped researchers narrow down specific attributes and situations to determine customer expectations. This study showed that more than two-thirds of the responses said they would prefer touch screen ordering in fast food restaurants.

Future Research and Limitations Since the technology tested in this study is new and unlikely available, it was necessary to carry out the study using scenario and questionnaire methods. However future research could examine the link with expected service quality and selection of technology- based self-service in an actual service encounter. By performing a field study, limitations of shortened questionnaires, anticipating no respondent bias, and accepting that some circumstances are beyond the researchers control (like long waiting lines) should be expected.

Management Implications Since the results of the study were positive in regards to the possibilities for service firms, this should encourage them to explore the potential of technological-base self-service options. – College students eat frequently at fast food restaurants. – These results may also apply to other groups other than college students. – Investment in this type of technology could be quickly recovered. Service Firms should design and promote their own attributes of the service delivery that can result in better evaluations of service quality.