SSTs are perceived to help companies subsidize consumer transaction processes and improve customer satisfaction and loyalty by increasing efficiency, convenience and perceived control ( Meuter et al. , 2000 ). Another key gap is "how does the lack of human contact affect loyalty and what are the determinants of service loyalty regarding SSTs?" (Meuter et al., 2000).
Rational for the Study
A second key gap is (2) "How does lack of human contact affect loyalty and what are the determinants of service loyalty in relation to SSTs" (Meuter et al., 2000). Thus, the importance of this study is its contribution to the academic knowledge of service encounter satisfaction and service loyalty, and to the managerial implications inherent in the current trend of increasing technology applications in services.
Problem Statement
Therefore, this research studies the impact of satisfaction with technology-based service encounters on customer loyalty and compares it with interpersonal service encounter satisfaction.
Research Questions
Research Objectives
Broad Objective
Specific Objectives
Scope of the Study
Therefore, private stock traders/investors (i.e. the customers) of brokerage firms in Bangladesh were selected as the target group as they had more potential opportunities for encounters with technology-based or interpersonal interface. In conclusion, this study focused solely on customer dissatisfaction/satisfaction with both service encounters (interpersonal and technology-based) and service encounter satisfaction outcomes related to service loyalty.
Structure of the Study
The proposed conceptual model of the impact of technology-based service encounters on customer loyalty, and that the strength of the impact in each case depends on customers' technological readiness. These satisfactions contribute to loyalty, and if anything, TR influences the strength of the relationship.
Understanding Consumer Behavior 2.0/ Web 2.0/ Digital
- Introducing Web 2.0 (Pronounced two-points-oh)
- Consumer
- Prosumer
- Digital Consumers Vulnerability
- Digital Bangladesh
- Growing Use of Digital Technology
- Networked Readiness Index (NRI)
- ICT Development Index (IDI)
- E-Government Development Index (EGDI)
- Bangladesh Culture
- Power Distance
- Individualism
- Masculinity
- Uncertainty Avoidance
- Long Term Orientation
- Indulgence
- Asian Consumer Behavior
Online consumers are becoming increasingly involved in the creation of the products and services they buy, shifting the balance of power from producer to consumer. The slogan of "Digital Bangladesh" of the Government of Bangladesh has special significance for national development.
Literature Review.................................................................... 23-83
Customer Satisfaction
- Customer Satisfaction versus Service Quality
- Customer satisfaction with technology based service encounters
- Customer satisfaction with interpersonal service encounters
- Customer satisfaction with service encounters
Customer satisfaction thus includes both affective (emotional) and cognitive components and is evaluated based on a summary attribute phenomenon that coexists with other consumption emotions (Liljander and Strandvik 1997; Oliver 1993). The definition of customer satisfaction is based on three components: (1) a positive response related to (2) a particular focus determined at (3) a specific point in time, following guidelines from a context-specific definition of customer satisfaction proposed by Giese and Cote (2000) .
Customer Loyalty
- Brand Loyalty versus Service Loyalty
- Customer Loyalty Drivers
- Customer Satisfaction – Customer Loyalty Relationships
Customer loyalty has also been conceptualized differently as repurchase behavior (Loveman 1998), repurchase intention (Soderlund 1998), willingness to give positive word-of-mouth to potential customers (Andreassen and Lindestad 1998) and repurchase behavior combined with an attitudinal component (Lemmink and Mattsson 1998 ). It is clear that customer loyalty is still under debate, similar to the concept of customer satisfaction. The nature of the relationship between customer satisfaction and customer loyalty has also been the subject of debate among academics.
However, the specific relationship between customer satisfaction and customer loyalty has not been well investigated (Oliver 1999). As mentioned above, there is a need to specifically investigate the relationship of customer satisfaction with service encounters and customer loyalty.
Technology and the Customer
- Customer Perceptions of Technology
- Technology Readiness of Customers
Thus, customer attitudes toward technology can act as a moderator in the relationship between satisfaction and loyalty, especially in technology-based services. Therefore, there is a need for further research on customers' perceptions of technology, especially when they interact with a technology interface in technology-based service encounters. The complexity of technology-based services and the lack of user-friendly instructions also cause customer disappointment.
It can be argued that customers have a propensity towards positive perceptions of technology and technology-based services. Research evidence shows the positive relationship between the technology readiness of customers and the use of technology-based services (Parasuraman.
Conceptual Model
- The Impact of Technology Readiness of Customers on Service
- Moderating Effects of Technology Readiness
- Definitions
- Hypotheses for the study
H1a: Customers who have a high level of technology optimism tend to have higher satisfaction with technology-based service encounters. H1b: Customers who have a high level of technology innovativeness tend to have higher satisfaction with technology-based service encounters. H1c: Customers who are high in technology anxiety tend to have lower satisfaction with technology-based service encounters.
H1d: Customers who have high levels of technology uncertainty tend to be less satisfied with technology-based service encounters. H3b: Customers who have a high level of innovativeness towards technology tend to be less satisfied with interpersonal service encounters.
Methodology
- Research Design
- Qualitative Research
- In-depth Interviews
- Results of In-depth Interviews
- Delphi
- Survey instrument development
- Concept development from literature review
- Generation of items specific to brokerage service context
- Quantitative Research
- Refinement of the items
- Questionnaire Development
- Data collection
- Characteristics of the sample
- Technology-Based Service Encounter Users
- Traditional Interpersonal-Based Service Encounter Users
Most of the concepts in this study were created and used, sometimes to a large extent, in a Western context (eg USA and European countries). Additional interviews were conducted with marketers who have direct contact with customers and with retailers (customers). Although service providers and customers perceived the specific factors causing customer dissatisfaction with interpersonal services somewhat differently, the results showed three main sources of customer satisfaction, consistent with the literature (Table 4.1). Responsiveness to customer needs and demands: Marketing officers perceived that retailers would be satisfied with immediate and continuous notification of relevant and useful information (eg inside or intelligence information).
Slowness and inaccuracy by marketing officers in receiving and placing trade orders No response. Marketing officers claimed that online trading could serve clients if they urgently needed to execute an order when the market was very active.
Data Analysis Results and Discussion................................... 115-174
Reliability and Factor Analysis
If the Cronbach's alpha is greater than 0.70, Nunnally (1978) and Hatcher (1994) suggested that a scale can be considered highly reliable and that 0.60 is acceptable.
Dis/satisfaction Drivers of Technology-Based Service Encounter
- Factor Analysis Principal Component Analysis (PCA)
- Exploratory Factor Analysis (EFA) & Confirmatory Factor Analysis
- Confirmatory Factor Analysis (CFA)
This establishes the reliability and convergent validity of the measurement model for satisfaction with SSTs. Results of confirmatory factor analysis (CFA) of TRI with interpersonal service encounters are reported in Table 5.35, which were found to be consistent with the values with technology encounter. Here, the path analysis results (as shown in table: 5.46) showed that the composite variable satisfaction with interpersonal service encounters significantly helps to determine the overall satisfaction.
Overall finding of regression analysis (shown in Table: 5.54a) revealed that individuals' technology readiness moderates the interpersonal service encounter satisfaction and customer loyalty link.
Technology Readiness Index (TRI) Model and Satisfaction with SST
- Principal Component Analysis (PCA)
- Exploratory Factor Analysis (EFA)
Validation of TRI drivers with Interpersonal Service Encounter
The DISC tech support lines are not helpful because they don't explain things in terms I understand. The rapid expansion of the use of information technology in everyday life and its perceived functional and emotional benefits have improved the attitude of individuals towards meeting technology. People in developing countries like Bangladesh have a positive attitude towards the use of technology, regardless of technology users as well as non-users.
On the other hand, both the respondent groups showed a moderate level of attitudes towards discomfort and uncertainty in using technology. Significant paired t-test value for uncertainty (P = .000) suggests that although non-technology users have a favorable attitude towards the benefits of using technology, but due to high level of uncertainty feelings they distrust technology and remain reluctant to to go for technology meeting received in service.
Impact of Technology Readiness on Service Satisfaction with SSTs
Although overall TRI on satisfaction was found to be insignificant, its dimensions – optimism and innovation were found to positively influence satisfaction with SSTs, registering at a five percent significance level estimated impacts of 0.57 and 0.23 respectively. Other two dimensions of TR – discomfort and uncertainty – were found to negatively influence satisfaction with SSTs as expected, but statistically insignificant with an estimated impact of -.10 and -.08 respectively at a five percent significance level, which does not H1c and H1d are not supported. Therefore, it can be inferred that technology users are very positive about the benefits of using technology and their satisfaction level can be increased with the careful handling of the issues such as technological failure, uncertainty etc.
Effect of TRI Dimensions on Service Encounter Dissatisfaction
There is no moderating effect of customer TRI on the relational relationship between satisfaction with SSTs and loyalty. The 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 technology uncertainty. This study explored customer satisfaction with service encounters, whether technology-based or interpersonal, and their impact on customer loyalty.
The quantitative work confirmed the experimental work that consumer attitudes towards technology positively influence customer satisfaction with technology-based services. The impact of technology-based service encounters on customer loyalty in this study mainly focuses on the role that customer satisfaction plays in the service encounters.
Impact of Technology Readiness on Service Satisfaction with
- Impact of Technology Based Service Encounter
- Impact of Interpersonal Service Encounter
The Moderating Effect of Technology Readiness of Customers
- Effect with Technology based Service Encounter
- Effect with Interpersonal Service Encounter
Thus, it fulfills hypothesis H7 which implies that TR moderates the relational link between dating satisfaction and loyalty. Optimism weakens the relational link (as shown in Table: 5.49 and Figure: 5.18) between satisfaction and loyalty, while it was assumed that those who have. However, two other dimensions - worry and uncertainty - supported hypothesis 7c and 7d which refers to these two dimensions significantly weaken the relational link between satisfaction and loyalty as expected.
In summary, the study concludes that all the hypotheses regarding the moderating effects of customer technology readiness on customer service encounter satisfaction and loyalty relationships are not supported as hypothesized. Further, negative customer attitudes toward technology, especially uncertainty, also significantly moderate the positive relationship between satisfaction and loyalty in both types of service encounters.
Summary of Hypothesis Testing of Conceptual Model
Conclusions and Recommendations...................................... 175-189
Limitations
However, other issues also impact customer loyalty when service firms have implemented technology-based service. However, the initial and critical impact of customer satisfaction with technology-based service encounters on customer loyalty is the main topic investigated in this research, and it did not include switching costs. However, this study provides moderately significant findings that in any case represent the impact of technology-based service encounters on customer loyalty, especially the influence of technology readiness of customers in the early stage of providing technology services in the emerging market contexts.
The impact of technology-based service on customer loyalty may vary in some details if one were to examine business-to-business contexts, as the nature of customers is somewhat different. According to the cross-sectional study of this study, the results may be limited to the time of research operations, for example, at an early stage of technology-based service adoptions may show different impacts on customer loyalty.
Implications / Recommendations
- Theoretical Implications
- Social Implications
- Managerial Implications
This model adds the explanatory power of the intrinsic benefits of SSTs and proposes a two-dimensional conceptualization of SSTs' experience as perceived by customers. The impact of intrinsic properties of SSTs has been argued but has not been systematically investigated (Kim et al., 2012). Therefore, this study examined both the extrinsic and intrinsic characteristics of SSTs to understand their respective impacts on satisfaction.
It indicates that consumers' satisfaction with SSTs was influenced by attributes beyond the functional level, but the role of functional attributes appeared to be more dominant than intrinsic attributes as drivers of dissatisfaction/satisfaction in consumers' evaluation of SSTs. However, it can be concluded that the intrinsic property of SSTs, such as enjoyment, has the power to significantly increase consumers' satisfaction with SSTs.
Further Research
