How to infuse mobile technologies in frontline service encounters? An experimental analysis of customer perceptions of service competence

ABSTRACT

In technology-infused frontline service encounters, human-based service represents a high degree of uncertainty. However, understanding how technology can meet customer demands without undermining the importance of human interaction is crucial for retailers to remain competitive. However, empirical evidence comparing different types of service encounters (technology-facilitated vs. technology-assisted vs. technology-free) is lacking. Building on existing approaches to technology-enabled services, this study aims to extend the understanding of the optimal type of technology infusion and human interaction in the context of customer trust and willingness to pay. Drawing on social interaction theory, emphasizing that technology can influence the nature and quality of interactions between customers and frontline employees, this paper empirically examines different types of service encounters. A quasi-experimental online study (N = 944) was conducted.General results show that technology infusion within the service encounter has a negative impact on customers’ trust in the frontline employee, but a positive impact on customers’ willingness to pay. Furthermore, a mediating influence of customers’ perceptions of the competence of frontline employees can be demonstrated. The results show that customers place more value on a technology-facilitated encounter than on a technology-assisted service. Based on the findings, this paper derives implications for retail managers at various levels. Since the customer’s perception of the competence of front-line employees in using a technology is of high relevance to the customer, the retailer should pay more attention to training employees in the use of these technologies in their interactions with customers because of the perception of service competence and other relationship-building criteria such as trust. In addition, the competent use of these technologies and the customer’s perception of them can also affect the customer’s willingness to pay and thus the success of the business.

KEYWORDS:

• PoS Retailing
• technology-infused service encounter
• social interaction theor
• customer touchpoint
• service competence of the frontline employee

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Tobias Röding

Tobias Röding works as a post-doctoral researcher at the Chair of Marketing and Retailing at the University of Siegen, Germany. His research focuses on the interplay between technology and customer behavior in retail, covering topics such as point-of-sale technology, information processing, last-mile delivery, voice assistants, and customer disclosure patterns. He has published several articles in international peer-reviewed proceedings, including Journal of Retailing and Consumer Services, The International Review of Retail, Distribution and Consumer Research or International Journal of Retail & Distribution Management.

Gerhard Wagner

Gerhard Wagner is assistant professor at the Chair of Marketing and Retailing at University of Siegen, Germany. His research focuses on multichannel marketing and consumer behavior. He has published several articles in international peer-reviewed journals, including Journal of Business Research, The International Review of Retail, Distribution and Consumer Research, Journal of Retailing and Consumer Services.

Sascha Steinmann

Sascha Steinmann is professor of Commercial and Retail Management at the Department of Management, Aarhus University, Denmark. His research focuses on consumer behavior in omnichannel environments. He has published several articles in international peer-reviewed journals, including Journal of Business Research, Psychology & Marketing, and Journal of Retailing & Consumer Services.

Theresia Mennekes

Theresia Mennekes is research assistant at the Chair of Marketing and Retailing at University of Siegen, Germany. Her research focuses on consumer behavior, digital retail environment and privacy issues. She has published several articles in international peer-reviewed proceedings, including AMA and EMAC.

Hanna Schramm-Klein

Hanna Schramm-Klein is Professor of Marketing and Retailing at University of Siegen, Germany. Her research focuses on cross-channel, retail and international marketing. She has published several articles in the international peer-reviewed journals, including Journal of Retailing, Psychology and Marketing, Journal of Advertising, Journal of International Management and Business and Society.