CHAPTER 5 Data Analysis Results and Discussion................................... 115-174
5.11 The Moderating Effect of Technology Readiness of Customers
5.11.2 Effect with Interpersonal Service Encounter
168 Figure 5.17: Satisfaction < Insecurity > Loyalty
Table 5.52: Estimated Path Analysis
Estimate Standardized S.E. C.R. P Label
ZLOY <--- ZSAT .412 .412 .059 7.039 ***
ZLOY <--- Sat_x_Ins .100 .093 .064 1.570 .116
ZLOY <--- ZINS .129 .129 .060 2.166 .030
Table 5.53: Hypothesis Testing
Null Hypothesis Beta
(β)
Sig. (P Value
< 0.05)
Rejected
7. There is no moderating effect of TRI of customers on the relational link between satisfaction with SSTs and loyalty
Significant Partially YES
7.a. Optimism weaken the relational link between satisfaction and loyalty
-0.293 Insignificant Partially NO
7.b. Innovativeness weaken the relational link between satisfaction and loyalty
0.294 Insignificant NO
7.c. Discomfort strengthen the relational link between satisfaction and loyalty
0.131 Significant YES
7.d. Insecurity strengthen the relational link between satisfaction and loyalty
0.104 Significant YES
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tend to strengthen the positive relationship of satisfaction with interpersonal service encounters and customer loyalty to service firms. As shown in Figure 5.22, both favorable variables –optimism and innovativeness and inhibitor variable- insecurity positively influence loyalty, whereas discomfort has insignificant effect on loyalty. Overall regression analysis finding (shown in Table: 5.54a) revealed that individuals technology readiness moderate the interpersonal service encounter satisfaction and customer loyalty link. The results of path analysis for testing the hypothesis of moderating effect of each of the dimensions of TR model on interpersonal service encounter and loyalty demonstrated that both optimism and innovativeness of individual toward technology weaken the relational link as expected, thus it supports the hypothesis H8a and H8b. On the other hand, both inhibitor variables –discomfort and insecurity, moderate but do not strengthen the relational link, thus failed to satisfy the hypothesis H8c and H8d. This posits that technology prone people are more technology fan and prefer technology encounter in service delivery and exhibits less loyal to the firms provide services through human encounters.
In summary, the study concludes that all the hypothesis regarding the moderating effects of customers’ technology readiness on customer service encounter satisfaction and loyalty relationships are not supported as assumed. Especially, the optimism of respondents who trade via either technology encounter or human encounter was very positive but weaken the relationship between service encounter satisfaction and loyalty. This result posits that both categories of respondents are young, highly educated, professional and have very positive attitudes towards the benefits of technology particularly, information technology but the use of technology isn’t very pervasive yet in all kinds of business and consumption activities. Although, the result satisfies the hypothesis that higher level of optimism of respondents toward technology weaken human encounter satisfaction and loyalty link, it cannot be concluded that more the users will become technology prone will avoid human encounter or will become more loyal to the firms that offer services via technology encounters.
Respondents who love to be technology innovators are likely to decrease the degree of positive relationship of satisfaction with human service encounters and customer loyalty to the service firms. The results show that both the respondent groups are moderate technology innovators (mean value 3.79 (online users) and 3.43 (offline users) respectively) and their positive attitudes toward technology moderate i.e., weaken the
170
relationship of satisfaction and loyalty in both technology-based and interpersonal service encounters. It infers that it is not only the respondents technology orientation that drive them to use technology but also the factors such as, their culture, motivation, negative perception, long-term orientation of interpersonal encounter also influence the adoption of technology and the satisfaction loyalty link.
Further, negative attitudes of customers toward technology, especially insecurity, also significantly moderates the positive relationship of satisfaction and loyalty in both types of service encounter. It demonstrated that customers who have high levels of insecurity tend to decrease the degree of positive relationship of technology-based service satisfaction-loyalty but increase the degree of the impact of interpersonal service satisfaction on customer loyalty. Results supported the hypothesis that the impact on customer loyalty of satisfaction with technology-based service encounters is weaker for customers who have high levels of insecurity toward technology. Also in the interpersonal service encounter, the impact of overall satisfaction with human service on customer loyalty is weaker for customers who have high level of innovativeness optimism toward technology.
Overall, results partially supported the hypotheses that TR moderates the relationships of customer satisfaction with service encounters and customer loyalty, as presented in Table 5.53 and 5.58 respectively.
Figure 5.18: Impact of TRI dimensions on Loyalty
Table 5.54: Estimated Path Analysis
Estimate Standardized S.E. C.R. P Label
LOY <--- OPT .139 .149 .065 2.132 .033
LOY <--- INO .152 .142 .073 2.062 .039
LOY <--- DISC -.022 -.021 .071 -.306 .759
LOY <--- INS .334 .297 .079 4.232 ***
171 Table 5.54a: Regression Analysis
Model Sum of
Squares
Df Mean Square F Sig.
1
Regression 12.425 4 3.106 3.228 .013b
Residual 215.575 224 .962
Total 228.000 228
a. Dependent Variable: ZLOY
b. Predictors: (Constant), Sat_x_Ins, Sat_x_Ino, Sat_x_Disc, Sat_x_Opt
Figure 5.19: Satisfaction < Optimization > Loyalty
Table 5.55 Estimated Path Analysis
Estimate Standardized S.E. C.R. P Label
ZLOY <--- ZSAT .394 .394 .061 6.426 ***
ZLOY <--- Sat_x_Opt -.094 -.125 .053 -1.788 .074
ZLOY <--- ZOPT .097 .097 .073 1.329 .184
Figure 5.20: Satisfaction < Innovation > Loyalty
172 Table 5.56 Estimated Path Analysis
Estimate Standardized S.E. C.R. P Label
ZLOY <--- ZSAT .410 .410 .060 6.884 ***
ZLOY <--- Sat_x_Ino -.115 -.128 .052 -2.187 .029
ZLOY <--- ZINO .144 .144 .060 2.415 .016
Figure5.21: Satisfaction < Discomfort > Loyalty
Table 5.57 Estimated Path Analysis
Estimate Standardized S.E. C.R. P Label
ZLOY <--- ZSAT .429 .429 .059 7.324 ***
ZLOY <--- Sat_x_Disc -.124 -.147 .050 -2.469 .014 ZLOY <--- ZDISC .163 .163 .060 2.737 .006 Figure 5.22: Satisfaction < Security > Loyalty
Table 5.58 Estimated Path Analysis
Estimate Standardized S.E. C.R. P Label
ZLOY <--- ZSAT .350 .350 .060 5.882 ***
ZLOY <--- Sat_x_Ins -.115 -.146 .045 -2.538 .011
ZLOY <--- ZINS .255 .255 .059 4.297 ***
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Table 5.59: Hypothesis Testing of Moderating Effect
Null Hypothesis Beta
(β)
Sig. (P Value
< 0.05)
Rejected
8. There is no moderating effect of TRI of customers on the relational link between satisfaction with SSTs and loyalty
Significant Partially YES
8.a. Optimism strengthen the relational link between satisfaction and loyalty
-0.125 Insignificant YES
8.b. Innovativeness strengthen the relational link between satisfaction and loyalty
-0.128 Significant NO
8.c. Discomfort weaken the relational link between satisfaction and loyalty
-0.147 Significant NO
8.d. Insecurity weaken the relational link between satisfaction and loyalty
-.146 Significant NO