Effects of Self Service Technology on Customer Value and Customer Readiness

Arash Tofangsaz¹ Marzieh Ghobadipour²

1) MA in Accounting
2) Ph.D in Educational Technology

IOI Code : XYCG-AEAKD
Publication : international conference of Management Elites(icme.ir)
Abstract :
    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 theeffects of CV and CR in customers’ continued use of Internet banking. Design/methodology/approach – An online survey was used with a sample of 405 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 toinvestigate the effects of negative factors, such as risk and complexity. In addition, the same methods should be used to reproduce the survey in other industries to support generalizability. Practical implications – Managers should reinforce SST in order to increase CV and CR, whichwould influence customers’ willingness to continue using Internet banking. Originality/value – Unlike previous research, the study focuses on consumers’ continued use of Internet banking as opposed to initial use. It concentrates on customer retention rather than customer acquisition. It is the first study to conclude that CV and CR significantly affect continued use of SST.

Keywords : self service customer relations virtual banking