Advantages and Disadvantages of Self-Service Technologies to Customers in Organizations - Literature review Example

BENEFITS AND DISADVANTAGES OF SELF-SERVICE TECHNOLOGIES TO CUSTOMERS Name Name of the institution BENEFITS AND DISADVANTAGES OF SELF-SERVICE TECHNOLOGIES TO CUSTOMERS In today’s world of business, technologies are making transactions to be more perfect, appropriate and faster. Consequentially, due to applicable technologies in the business world, customers are becoming more self-satisfied. (Andersson, & Mattsson, 2015) States that self-service technologies have made it possible for customers to solve their problems in any day at any given convenient time. Literature review on benefits and disadvantages of self-service technologies to customers As many organizations claim that implementing self-service is a discouraging task, it is, however, beneficial to both the companies and the customers. (Akinyele & Olorunleke, 2010) Highlighted that in recent time technologies services have greatly changed the manner in which business operate. E-service has contributed much to making the world of business more interacting and as well raising the number of customers in a business circle (Meyler et al., 2014). Virtually, in today world everything is becoming scientific and technical, due to such; the installation of e-service programs in business is becoming essential to the business world. Technologies in business, especially, in the banking system, have over the past years determined the success or failure of the banking services. (Akinyele & Olorunleke, 2010), stated that e-services provide customers with more experiences with respect to carrying out any transactions in the ever changing world of business as opposed to normal services. According to (www.businessbee.com, 2015) there are more than 25,000 self-service terminals across the world. The research further indicates that the growth of e-service is projected to increase having that more businesses are seeking to integrate their operation to the e-services system. Therefore, this literature review focuses on analyzing the benefits and disadvantages of self-service technologies in the current world of business. Benefits of self-service technologies to customers in the current organizations Many scholars have over the past years touched on the topic or subject of self-service technologies. These studies touching the topic of self-service technologies have been in form of journals, internet information, textbook and other research writing that has been carried out by other different people. As mentioned in different studies, self-service technologies are installed mostly to benefit the customers (www.businessbee.com, 2015). In the technological business world, self-service technologies include machines such as ATM, paying for checkout machines, vending machine and washing machines. Some of these self-service technologies are installed in the cities, hotels, shopping malls and centers (Leslie, 2006). In a clear outline, many studies have identified some benefits that customers enjoy as a result of self-service. www.businessbee.com, (2015) basing it on self-service technologies customers learn new skills. Further research indicates that self-service programs play a potential role in helping the customers provide a solution to the problem and as well providing the customers with the tools they require to solve their problem at present and in the future (Lin, & Hsieh, 2006). Therefore, self-service technologies can enhance customers to learn more regarding a product they are purchasing. For example, in the vending machine, customers access a variety of information that can help them in future. Thus, using the machine for self-service makes the customers’ knowledgeable hence, becoming more educated regarding the future of self-service responsibilities. Cunningham, Young, & Gerlach, (2009) further stated that self-service technologies are an important component in relation to customers’ recommendations in the business. The research that was carried by the three scholars suggested that an improved self-service system only strengthens a customer’s viewpoint regarding an organization. Just like any other electronic devices such as the mobile phone, computerized self-service machines create an interacting environment that organization can use to make an impression to the customers. The scholars furthered their argument by indicating that a better self-service program in the business will help customers make a positive recommendation regarding a business. Consequentially, self-service programs in the organization will strengthen the process of collecting data and reviews for future improvements geared towards improving customer service (Leslie, 2006). As noted by (Andersson, & Mattsson, 2015) Self-service technologies provide faster services to customers and allow them to make the choice as the programs are based on 24 hours operations. For example, the ATM is one of the commonly used forms of self-service technologies. The use of ATMs allows customers to receive the banking services at any time. A survey by (Rajagopal, & Rajagopal, 2012) outlines that the machine is faster compared to other forms of withdrawing money from the bank. More so, e-services in the banking system allow the customers to withdraw any amount of money at any time either night or daytime. Therefore, the ATM facilities or make the banking process faster and readily accessible. Also, as the case of self-service technologies is based on several research studies, the studies claims that self-service programs are beneficial to travelers (Cook, & Hussey, 2002). Major customers of the self-service technologies are the travelers or tourists. (Cook, & Hussey, 2002) Conducted more than one’s studies and in the research they argued that self-service technology is of great importance to the travelers specifically in the banking system as people traveling do not wish to carry a lot of cash on them. For example, as a result of installed ATM, travelers do not carry a large amount of money. In the study by (Leslie, 2006) it is stated that the installed ATM has changed the banking system as tourists can withdraw money from any city across their country or even in any part of the world. (Siebenhandl, Schreder, Smuc, Mayr, & Nagl, 2013) Believes that the vending machines has changed the life of the local passengers as the service machine allow the local community to access any food product in any case of requirement (Leslie, 2006). Thus, the machine giving a customer convenience while buying goods or accessing any services. Meyler, Hoecke, Erskine, & Buchanan, (2014), believed that through self-service technologies, customers do not encounter the heavy cost in seeking organizations services. The research by (Meyler, Hoecke, Erskine, & Buchanan, 2014) labeled that customers do not face the heavy cost in seeking organization services as a result of self-service technology in the business. In the study, it is highlighted that technology minimizes the cost of calls, email in association to service inquiries. As technology enhances a new way of achieving the business task, the machine can help the customers to engage in business with lowered cost. For example, in the case self-service task at the gas station, customers do not pay the consulting fee as the machine installed in the pumping station allows customers to pay and get their car filled with fuel. According to (Scupola, 2011) self-service technologies facilitate the efficiency of customers’ at the checkout. Perhaps this is one key benefit that customers can enjoy as a result of using self-service technologies. In his study, he found that self-checkout allows customers pay for a purchase or register at in any point requiring an entry with the help of self-checkout. This makes the whole process of paying or registering efficient as customers are not required to make lengthy checkout queues. More so, as the study by (Scupola, 2011) reviewed the subject of self-service technologies, it states that people can quickly make the purchase and pay their purchases as a result of self-service technologies. Besides, this saves customer’s time as customers do not wait on the lines to make payments hence minimizing the stress that customers may encounter dealing with the employees (Lee, Jeong Cho, & Fairhurst, A. 2010). For example, customers find it helpful and effective when making their purchase or rather making shopping payments in a vending machines. www.businessbee.com, (2015), as a result of self-service technologies customers, share information regarding a company in an improved way. The study by (Meyler et al., 2014) highlights that technology helps in enhancing the flow of information to the customers either written or advertised. The survey further indicated that e-services allow customers to obtain information regarding a given business. Thus, as some of the customers get informed as a result of self-service technology, it will be easier for them to spread the information concerning a given organization (Meyler et al., 2014). Disadvantages of self-service technologies to customers in the current organizations According to (Cook, & Hussey, 2002), most organizations has identified the disadvantages of investing in the self-services programs. Self-service technologies are among the most dynamic component of the business, as they are carried out by the customers without any involvement of the employees of the organization. The study by the scholar further claims that the whole process of self-services is conducted without involving the companies either directly or indirectly. There is no face to face encounter between customers and the representative of the organization (Lee et al., 2010). For example, customers bank through the Automatic Teller Machine, or over the mobile phone. More so, customer inquiries concerning airlines through the internet and at times book for air tickets through portals managed technologically. Therefore, basing it on various studies done by different scholars, one can see the limitation of self-service technologies. Regarding self-service program (Lee, 2010) stated that self-service technologies may cause a poor relationship between employees and businesses. The study has further indicated that involvement of technology in the business hinders the development of the customers’ relationships and as well the services quality (Lee, 2010). Both the relationship and the quality of the services provided by the businesses are poor as opposed to the exponential growth of technologies as witnessed in the organizations currently. For example, (Shamdasani, Mukherjee, & Malhotra,2008) said that as a result of self-service technologies, the relationship that existed before the implementation of technology in businesses has eroded as consumers no longer interact indirectly with the organization or the employees (Lee et al., 2010). On the other hand, a survey carried out by (Akinyele, & Olorunleke, 2010) identified that self-service technologies do not promote the development of the relationship between new customers and the organization. The like of vending machines and automotive washing machines do not give new customers the opportunity for a comprehensive relationship with the organization. They hardly give slips or discounts that are essential in customer growth and brand loyalty. Akinyele, & Olorunleke, (2010) also emphasized on the topic of self-service technologies and found that self-service programs are not friendly the user and society as a whole. As the world is becoming digitalized, the installation of technologies in almost everywhere can be problematic to some individuals. For instance, in the study conducted by (Akinyele, & Olorunleke, 2010) it was found that not every customer has the knowledge to use the vending machine or self-checkout system. In the situation of self-checkout, some of the customers may require assistance on how to operate the machines (Cook, & Hussey, 2002). For instance, the barcodes may be unresponsive while at times it lacks the ability to scan properly. (Cook, & Hussey, 2002) Outlined that this situation make customers encounter difficulties in accessing the checkout machines hence causing unnecessary delays due to lengthy lines. Self-service technologies like checkouts can at some time be frustrating to the customers, and many customers will tend to avoid the system as they do not feel comfortable with the difficulties supposedly to be encountered (Cook, & Hussey, 2002). Despite the fact that, many analyses have been conducted on the matter of self-service technologies, it is stated that the system tend to hamper communication between customers and the organization or causes a breakdown in communication. (Mamiev, 2010) Specifically generate the whole idea of self-service technologies as effective and efficient to customers. However, many consumers prefer a face to face communication with either the cashier or a representative of the organization. (Scupola 2011) Believes that customers do not feel comfortable while dealing with a faceless device. In fact, customers enjoy a short-lived chat with the employees or the owners of the organization. Usually, a face to face communication allows the customer to receive the required attention by the employees. (Scupola 2011) Further said that lack of communication between the business and the customers, make the consumers shift loyalties to where customer interaction is embraced. Mamiev, (2010) as he conducted the researcher concerning self-service technologies, he stated that customers are becoming overdependence as a result of the self-service system. As the society is becoming more advanced, technologically people are becoming more reliable to the self-service technologies. According to (Mamiev, 2010) People are becoming more dependable to the technological machines in today’s world of business. Currently, people depend mostly on the use of ATM while accessing the banking system, vending machines for consumables and washing machines for laundry services. However, customers may be at a risk if a machine breaks down in the installed software (Mamiev, 2010). Thus, customers stop enjoying the service until the solution for the problem is presented. The development of self-service program has been related to a couple of business errors. In a study by (Scupola 2011), it is outlined that self-service technologies increase transaction errors or erroneous transactions. As organizations are embracing technology at an improved level; the rate of customers’ errors is likely to rise under a self-service machine. Despite customers making mistakes in the traditional way of accessing services, the current systems of self-service are the one that are at high risk of exposing customers to mistakes (Lee, 2010). The study by (Scupola 2011) relates self-service aspect with errors that occur due to lack customers experience in handling machines. In some complex technological devices, it is proposed that customers should be trained so as to minimize the occurrence of errors in the systems (Lee, 2010). Meyler et al., (2014) encompassing technology and self-services, act as a hindrance to customers accessing help. According to (Meyler et al., 2014) only a cashier who can help a customer if he/she needs to purchase an additional product or if the customer wants extra services. As such, a machine cannot communicate. Thus, it cannot seek more information from the customer. More studies relating to the integration of technology and customer service claim that a machine provides customers’ with lower consumer services (Meyler et al., 2014). In this context, it is the mandate of the customer to act as a cashier while accessing the self-service machine (Meyler et al., 2014). For example, in a supermarket a cashier can tell a customer to buy more than three products and get one free. This is a totally different case from a machine, as a machine cannot customize such information to the customers. For instance, in accessing an ATM, the customer is given the duty to carry all the task of withdrawing money, checking for balance and retrieving the receipt. In some situations, without proper control of the machine it is suggested that self-service technologies cause’s complications. (Scupola 2011) Development of self-checkout may as well make customers encounter complications on how to use the machine. In this context, the study by (Leslie, 2006) highlights that many customers are not sure on the ways machines or money boxes are used due to the complications associated with advanced technological gadgets. Besides, in some situations operating a checkout can be a complicated process to the customers hence, seeking assistant from the shop attendants In conclusion, therefore, as one can observe an effective argument, it is clear that many people will go for both against and for self-self-service technologies. However, there is a clear indication that the self-service technologies are here to stay, and thus adaption is the only way forward. Across the globe, self-service is mostly popular among the adults and younger adults. However, for the older generation, the self-service technologies have lost their popularity as many prefer to access the service in the tradition way. Conceivably, the best way for businesses to ensure customer satisfaction is by offering the combination of the two from of providing services. Importantly, this will be essential as one bad customer encounter could lead to the customers not trusting the self-service system hence giving up on the self-service technologies. Above all, business should ensure that customers are not affected by the chore of self-service technologies or rather devices. References Akinyele, S., & Olorunleke, K. (2010). Technology and Service Quality in the Banking Industry: An Empirical Study of Various Factors in Electronic Banking Services. International Business Management Journal, 4(4), 209-221. http://dx.doi.org/10.3923/ibm.2010.209.221 Andersson, P., & Mattsson, L. (2015). Service innovations enabled by the “internet of things”. IMP Journal, 9(1), 85-106. http://dx.doi.org/10.1108/imp-01-2015-0002 Cook, A., & Hussey, S. (2002). Assistive technologies. St. Louis: Mosby. Cunningham, L., Young, C., & Gerlach, J. (2009). A comparison of consumer views of traditional services and self‐service technologies. Journal Of Services Marketing, 23(1), 11-23. http://dx.doi.org/10.1108/08876040910933057 Lee, H., Jeong Cho, H., Xu, W., & Fairhurst, A. (2010). The influence of consumer traits and demographics on intention to use retail self‐service checkouts. Marketing Intelligence & Planning Journal, 28(1), 46-58. http://dx.doi.org/10.1108/02634501011014606 Leslie, D. (2006). Using self-checkout technology to increase productivity and patron service in the library. Lin, J., & Hsieh, P. (2006). The role of technology readiness in customers' perception and adoption of self‐service technologies. Int Journal Of Service Industry Mgmt, 17(5), 497-517. http://dx.doi.org/10.1108/09564230610689795 Mamiev, A. (2010). O14 Advantages and disadvantages of using laser technology for liposuction. Journal of Photodiagnosis And Photodynamic Therapy, 7, S10. http://dx.doi.org/10.1016/s1572-1000(10)70029-6 Meyler, K., Van Hoecke, K., Erskine, S., & Buchanan, S. (2014). System Center 2012 Service Manager Unleashed. Upper Saddle River: Pearson Education. Rajagopal, D., & Rajagopal, A. (2012). Emerging Perspectives on Self Service Technologies in Retail Banking. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.1008067 Scupola, A. (2011). Developing technologies in e-services, self-services and mobile communication. Hershey PA: Information Science Reference. Shamdasani, P., Mukherjee, A., & Malhotra, N. (2008). Antecedents and consequences of service quality in consumer evaluation of self-service internet technologies. The Service Industries Journal, 28(1), 117-138. http://dx.doi.org/10.1080/02642060701725669 Siebenhandl, K., Schreder, G., Smuc, M., Mayr, E., & Nagl, M. (2013). A User-Centered Design Approach to Self-Service Ticket Vending Machines. IEEE Trans. Profess. Communication Journal, 56(2), 138-159. http://dx.doi.org/10.1109/tpc.2013.2257213 Www.businessbee.com, (2015). The Pros and Cons of Using Self-Checkouts, Retrieved 14 October 2015, from http://www.businessbee.com/resources/profitability/the-pros-and-cons-of-using-checkouts Read More