Evaluate the Role and Benefit of Self-Service Technology to Service Retailers

1909 Words Mar 1st, 2013 8 Pages
In today’s world, information technology advancement has prompted the development of self-service technologies. Self-service technologies (SSTs) are the technological interfaces that allow customers to co-produce the services to serve by their own. It has brought significant changes to service retailers as it has changed the way that how firms provide services to customers and how customers interact with firm. It enables customers perform entire services by themselves without direct assistance from employees and makes service transactions become more accurate and convenient. Kiosks, Internet, interactive voice response, and mobile services are types of SSTs that using by firms. (Castro et al., 2010, Meuter et al., 2000,NCR, 2008 and NCR, …show more content…
For example, regarding the use of SSTs in airline service, passengers can check-in at airport by using the check-in kiosks themselves instead of lining up in front of the service counter to check in. According to SITA’s Airline IT Trends Survey findings (SITA, 2009), it forecasts that the use of agent service for check-in will be dropped almost 30% and use of self-service check-in kiosks will be increased almost 8% by 2012. It shows that there is a trend that passengers are more likely to use the SSTs to serve them by their own and the use of agent services will be decreased. So the airline companies can hire fewer crews for providing the agent services and it would then reduce the cost of training their employees for performing the agent services. According to Forrester Research (Jones, 2004), self-service check-in costs an airline 16 cents per passenger as opposed to $3.68 per passenger by means of an airline agent. Thus, it means that a company which has employed SSTs may lower their cost as the cost of employing SSTs is much lower than the rising labor cost.

Another benefit of employing SSTs to service retailers is that it may gain a competitive advantage over competitors. Delivery of high service quality is a primary source of competitive advantage for service providers. As co-production through SSTs has become more popular

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