I Taller Internacional de Modelado de Interfaces de Usuario Denia, España, 15.03.2002 Modeling user interfaces for Internet based service delivery systems – a Services Marketing & HCI perspective applied to Internet Banking Lia Patrício, University of Porto, Portugal João Falcão e Cunha, University of Porto, Portugal Raymond Fisk, University of New Orleans

Outline 1. Introduction 2. Methodology 3. Proposed model 4. Preliminary research 5. Conclusion

Technology Service Delivery Systems (TSDS) Services Marketing “marketers are rarely included in the early stages of customer interface design”1 Human-Computer Interaction marketers provide scarce concrete guidelines to build interfaces according to customer’s needs Different perspectives 1 Fisk, Grove, John (2000)

Framework of analysis for TSDS Services Marketing Self-service technologies Service encounters Human-Computer Interaction User interface User interaction

Designing TSDS Services Marketing Human-Computer Interaction customer needs and preferences Human-Computer Interaction user requirements Customer profiles Interaction characteristics attributes of perceived quality User profiles Task analysis, use cases Rules of interface design

Evaluating TSDS Services Marketing Human-Computer Interaction interviews focus groups surveys Human-Computer Interaction expert reviews usability testing acceptance testing Predominance of perceptual and attitudinal measures Predominance of objective measures

Enhancing TSDS Services Marketing and HCI Human Computer Interaction Technology enabled SDS Services Marketing and HCI Two complementary perspectives in TSDS study

Methodology Using Services Marketing and HCI to enhance TSDS First stage: Understanding customer usage of SDS: identification of customer requirements for Internet Banking service. Interviews Database exploration Focus Groups Survey Second stage: Reflecting customer preferences into SDS characteristics. Development and test of internet banking prototype

Understanding customer usage of alternative SDS Customer characteristics (60 years old vs. techy) Customer service needs (low amount payment vs. pension plan advice) SDS usage Perceived performance of each SDS (Services Marketing, HCI and Innovation adoption literature)

Customer characteristics Socio-demographics Age, gender, professional status (30 years old executive vs. 60 years old granny) Attitudinal towards technology Technology readiness index2 (optimism, innovativeness, discomfort, insecurity) Financial services usage, and relationship with the bank (financial services usage, risk profile) 2Parasuraman (2000)

Customer service needs Stage of product usage Information search, evaluation of alternatives, negotiation, decision, contracting, contract changes, problem resolution. (e.g. mortgage loan) Purpose of interaction Information, transaction, advice. (e.g. stock market quotes, stock market transactions, investment advice) Type of consumer decision Complexity, risk, involvement, frequency (e.g. low amount payment vs. pension plan advice)

Perceived performance of each SDS SDS usage is influenced by customers’ perceptions of SDS performance, on a set of quality attributes.

SERVQUAL A measure of perceived quality for interpersonal service provision Tangibles - physical facilities, equipment, and appearance of personnel Reliability - ability to perform the promised service dependably and accurately Service Perceived Quality Intention to use the service Responsiveness - willingness to help customers and provide prompt service Assurance - knowledge and courtesy of employees and their ability to inspire trust and confidence Empathy -caring and individualized attention provided to customers Parasuraman et al, 1988

WebQual A measure of perceived quality in the web context Ease of use - design, interactivity, response time, intuitiveness Usefulness - information, fit to task, trust, customer services Web site Perceived Quality Intention to use the Web site Entertainment - flow, visualness, innovativeness Complementary relationship - integrated communication, business process relation, substitutability Loiacono, 2000

TSDS perceived quality Services Marketing tangibles, reliability, responsiveness, assurance empathy HCI ease of use, usefulness dependability, error freeness speed, control Innovation adoption accessibility, reliability, customer learning requirements: (compatibility, trialability)

Attributes of TSDS perceived quality High contact SDS quality attributes Technology SDS quality attributes Tangibles Reliability Responsiveness Assurance Empathy Appearance Reliability and error freeness Response to customer’s needs Self-assurance, control Security, privacy customization and flexibility Ease of use Usefulness, functionality Complementary relationship

Customers goals and needs characteristics (2) Customer Service needs (3) Importance of service quality attributes Customers profiles and needs will influence the importance given to a set of attributes of the SDS, such as response time, flexibility and assurance.

Customers perceptions of SDS performance characteristics (4) TSDS performance in terms of service quality attributes Customers are not focused on the system’s characteristics, but on their perceptions of the system’s performance, in terms of a set of attributes, such as response time, flexibility and assurance.

Proposed model (1) Customer characteristics The perceived quality of a SDS can be viewed as a result of the fit between customer’s needs and customer’s perceptions regarding the ability of the system to satisfy those needs. (2) Customer Service needs (3) Importance of service quality attributes (5) Perceived quality of TSDS Intention to use TSDS SDS characteristics (4) TSDS performance in terms of service quality attributes

Model applications Diagnosing system’s strengths and weakenesses, according to the customer’s preferences. Identifying user requirements for the system.

Diagnosing most important improvements Potentially over-developed functionalities Non-priority improvements Priority needed System’s strong importance low performance high

User requirements specification Customer characteristics (1) User profiles Customer service needs (2) use cases: Functional requirements (3) Importance of service quality attributes Non-functional requirements Perceived value of TSDS Intention to use TSDS (4) TSDS characteristics TSDS performance in terms of service quality attributes

Preliminary research Interviews with bank managers Visits to branches Exploration of database made by the bank 104.000 direct channels users (IB and TB) out of 1,3 million customers. Only direct channels’ interactions studied (80% use predominantly TB, 20% use predominantly IB).

Customer characteristics SDS Interviews with bank managers Database exploration ATM Widespread usage for ages younger than 60 IB Previous internet usage, younger, high professional status More males, higher education, stronger relationship with bank high frequency of interaction higher risk profile TB Less technology savvy More females than average DC customers, weaker relationship with bank, lower risk profile BN Older than 60 only use this channel

Customer service needs SDS Interviews with bank managers Database exploration ATM Cash withdrawals simple information IB Information search and transactions, specially stock market Current account and stock market information and transactions TB Customer support, transactions, order confirmation, simple questions Current account information, transactions BN Advice, negotiating, complex financial services contracting, complaining, selling

Most important attributes of customer perceived quality SDS Interviews with bank managers ATM Convenience Accessibility IB Reliability, security and privacy visual interface, simplicity, speed, TB Accessibility, ease of use, convenience, complementarity, human interaction BN Knowing there is someone responsible, empathy, efficiency, low waiting time, expertise, need of human interaction

Conclusions Services Marketing and Human-Computer Interaction: two complementary perspectives in TSDS study. Human-computer interaction brings concrete insights into SDS improvement. Services marketing puts the interaction into the overall service context.

Most important references Services Marketing: Meuter et.al 2000, Parasuraman 2000, Dabholkar 1996, Yoo and Donthu 2001, Loiacono 2000. Human-Computer Interaction: Ben Shneiderman 1998, Donald Norman 1998, Davis 1989. Innovation-adoption literature: Rogers 1983, Lockett and Littler 1997, Black et. al 2001.