Effects of self-service technology on customer value and customer readiness: The case of Internet banking

Purpose – The purpose of this paper is to investigate whether self‐service technology (SST) can enhance customer value (CV) and customer readiness (CR). In addition, it is proposed to inspect the effects of CV and CR in customers' continued use of Internet banking.Design/methodology/approach – An online survey was used with a sample of 771 respondents. Structural equation models (SEM) were used to examine 11 hypotheses in the theoretical framework.Findings – SST characteristics (i.e. ease of use, usefulness, costs saved, and self‐control) demonstrated positive effects on CV and CR. CR is positively related to CV. Furthermore, customers are willing to use Internet banking when CV and CR are high.Research limitations/implications – The study examines the factors contributing to positive effects on customers' continued use of Internet banking. Further research is recommended to investigate the effects of negative factors, such as risk and complexity. In addition, the same methods should be used to reproduce ...

[1]  R. Baumeister,et al.  Self-control relies on glucose as a limited energy source: willpower is more than a metaphor. , 2007, Journal of personality and social psychology.

[2]  Heikki Karjaluoto,et al.  Consumer acceptance of online banking: an extension of the technology acceptance model , 2004, Internet Res..

[3]  Jeffrey W. Overby.  An Integrative Review of Customer Value Management and National Culture: France and the United States , 2005 .

[4]  Chang Liu,et al.  Technology acceptance model for wireless Internet , 2003, Internet Res..

[5]  T. C. Edwin Cheng,et al.  Adoption of internet banking: An empirical study in Hong Kong , 2006, Decis. Support Syst..

[6]  Allard C. R. van Riel,et al.  Technology readiness and the evaluation and adoption of self-service technologies , 2006 .

[7]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[8]  Mary Jo Bitner,et al.  Implementing successful self-service technologies , 2002 .

[9]  R. B. Woodruff,et al.  Customer value: The next source for competitive advantage , 1997 .

[10]  Kathryn Waite,et al.  Task scenario effects on bank web site expectations , 2006, Internet Res..

[11]  Pao-Long Chang,et al.  Price, brand cues, and banking customer value , 2005 .

[12]  Margaret Craig-Lees,et al.  Technology‐enabled service delivery: An investigation of reasons affecting customer adoption and rejection , 2002 .

[13]  A. Wildt,et al.  Price, product information, and purchase intention: An empirical study , 1994 .

[14]  Fred D. Davis.  Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology , 1989, MIS Q..

[15]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[16]  Mary Jo Bitner,et al.  Self-Service Technologies: Understanding Customer Satisfaction with Technology-Based Service Encounters , 2000 .

[17]  M. J. Maggard,et al.  A Conceptual Model of Self‐service , 1991 .

[18]  Barbara L. Gross,et al.  Why we buy what we buy: A theory of consumption values , 1991 .

[19]  Fred D. Davis,et al.  User Acceptance of Computer Technology: A Comparison of Two Theoretical Models , 1989 .

[20]  G. Soutar,et al.  The Role of Perceived Risk in the Quality-Value Relationship: A Study in a Retail Environment , 1999 .

[21]  Kent Eriksson,et al.  Determinants of the continued use of self-service technology: The case of Internet banking , 2007 .

[22]  Shintaro Okazaki,et al.  Global Youth and Mobile Games: Applying the Extended Technology Acceptance Model in the U.S.A., Japan, Spain, and the Czech Republic , 2007 .

[23]  F. Bosch,et al.  Clicks vs. Bricks in the Emerging Online Financial Services Industry , 2001 .

[24]  P. A. Dabholkar,et al.  Integrating attitudinal theories to understand and predict use of technology‐based self‐service: The Internet as an illustration , 2001 .

[25]  Art Weinstein,et al.  Customer retention: A usage segmentation and customer value approach , 2002 .

[26]  X. Koufteros.  Testing a model of pull production: a paradigm for manufacturing research using structural equation modeling , 1999 .

[27]  A. Parasuraman,et al.  Technology Readiness Index (Tri) , 2000 .

[28]  Mary Jo Bitner,et al.  The influence of technology anxiety on consumer use and experiences with self-service technologies , 2003 .

[29]  M. Meuter,et al.  Self‐service technology adoption: comparing three technologies , 2005 .

[30]  Chao-Min Chiu,et al.  Determinants of continued use of the WWW: an integration of two theoretical models , 2004, Ind. Manag. Data Syst..

[31]  Jung-ki Lee,et al.  Effects of personal control on adoption of self‐service technology innovations , 2002 .

[32]  Nikos Tsikriktsis.  A Technology Readiness-Based Taxonomy of Customers , 2004 .

[33]  V. Zeithaml.  Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence: , 1988 .

[34]  M. Holbrook.  Consumption experience, customer value, and subjective personal introspection: An illustrative photographic essay , 2006 .

[35]  J. Tam,et al.  Customer Satisfaction, Service Quality and Perceived Value: An Integrative Model , 2004 .

[36]  G. Soutar,et al.  Consumer perceived value: The development of a multiple item scale , 2001 .

[37]  Balwinder Singh,et al.  Determinants of Internet banking adoption by banks in India , 2007, Internet Res..

[38]  Frank Go,et al.  Service Innovation in Hong Kong: Attitudes and Practice , 1998 .

[39]  J. Lin,et al.  The role of technology readiness in customers' perception and adoption of self‐service technologies , 2006 .

[40]  P. A. Dabholkar.  Consumer evaluations of new technology-based self-service options: An investigation of alternative models of service quality , 1996 .

[41]  Mary Jo Bitner,et al.  Choosing among Alternative Service Delivery Modes: An Investigation of Customer Trial of Self-Service Technologies , 2005 .

[42]  R. B. Woodruff,et al.  Customer Value Change in Industrial Marketing Relationships - A Call for New Strategies and Research , 1997 .

[43]  Vincent S. Lai,et al.  An Empirical Investigation of the Determinants of User Acceptance of Internet Banking , 2003, J. Organ. Comput. Electron. Commer..