Customer versus Employee Perceptions: A Review of Self-Service Technology Options as Illustrated in Self-Checkouts in U.S. Retail Industry

Abstract

INTRODUCTION Self-service technology (SST) options are an unavoidable aspect of everyday life. Everything from ATM machines at banks, automated gas pumps, self-checkout lines at grocery stores, to checking bags at an airport with help from kiosk can fall into this category (Anitsal, 2005; Anitsal and Anitsal, 2006; Anitsal and Anitsal, 2007). The actual definition of self-service technology, or SST, calls these options interfaces that enable to produce service independent of direct service employee involvement (Meuter et al., 2000, p. 50). With rise of technology over past couple decades, popularity of such an idea is only going to grow. NCR placed first self-checkout at Ball's Food Stores in Kansas City in 1998 (Anand, 2011, p. 1). Their intention was for machines to have shoppers scan and bag their own goods, pay with cash or plastic, and get out of store without so much as an insincere 'Have nice day', while also allowing companies to spend less money on cashiers in long run (Lake, 2002, p. 1). The cost was about $17,000-$20,000 per self-checkout, or $125,000 for pod of them, and could be completely paid off in nine months, compared to much higher annual rate required to pay actual cashiers (Anand, 2011; Lake, 2002). To further provide benefits to retailers and customers, new venders and improved technology have contributed to new definition of self-service that appeals most to the connected customer--meaning someone of younger generation who is more connected to booming technology--and has ability to cater both to catching and retaining customers (Bowers, 2013, p. 1). This latest description focuses mainly on customer convenience and three company-centered themes: big data, cloud computing, and smarter machines. Big data pertains to fact that companies now have capability to access higher level of information and observances that would be too much for one person to process or retain. Their reliance is on computers and data, which is now easier to retrieve thanks to cloud computing, or catch-all term for ability to rent as much computer power as you need without having to buy it, without having to know lot about it (Associated Press, 2013, p. 1). Smaller businesses often utilize this because cloud is cheaper and easier to use, especially when are demanding less human interaction, thinking check-in kiosks at airports and ATM machines are faster than alternative. A large number of consumers who usually use SST options also find themselves dissatisfied with lack of privacy that comes hand-in-hand with these types of technological advances (Associated Press, 2013). Even with these advances, consumers are discovering that they cannot have everything they want, specifically concerning how face-to-face interactions and job opportunities are steadily disappearing. Society was fearful in past of idea that machines and automation was a direct threat to employment, replacing all existing employees with machines (Andrews, 2014, p. 3). What they do not realize in more current times is that several of initial steps to an entirely automated world are in process of being created. Machines have already begun driving cars with Google, fighting wars with drones, keeping track of schedules with Siri, and even libraries can function with robots, not librarians, that retrieve books requested by students. Robot Taxi Inc., for example, has been working on developing driverless taxi cab service that will, for now, be able to travel three kilometers and navigate through major parts of city of Kanagwa, Japan, and will hopefully be commercialized by 2020 (Hongo, 2015). These are all samples of smart machines that will continue getting smarter and growing in popularity. While self-service technology is predominately thought about in retail sense, machines like common self-checkouts are actually everywhere in banks, hospitals, airports, movie theaters, and travel agencies. …