Understanding The Differences of Public and Private Self-Service Technology

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Understanding the differences of public and

private self-service technology


Joel E. Collier
Department of Marketing, Mississippi State University, Starkville, Mississippi, USA
Daniel L. Sherrell and Emin Babakus
Department of Marketing & Supply Chain Management, University of Memphis, Memphis, Tennessee, USA, and
Alisha Blakeney Horky
The Department of Marketing, Quantitative Analysis, and Business Law, Mississippi State University, Starkville, Mississippi, USA

Abstract
Purpose – The purpose of this paper is to explore the potential differences between types of self-service technology. Specifically, the paper explores
how the dynamics of public and private self-service technology influence customers’ decision to use the technology.
Design/methodology/approach – Existing customers of private and public self-service technology were surveyed from the same industry. Using
structural equation modeling, the authors examine how relevant self-service constructs influence evaluations and attitudes of customers across both
settings.
Findings – The analysis reveals that customers’ control and convenience perceptions differ across public and private self-service technology.
Additionally, customers placed a heavier emphasis on the hedonic or utilitarian evaluation of a service experience based on the type of self-service
technology.
Practical implications – For managers of self-service applications, understanding the unique differences of public and private self-service technology
can aid in the implementation and adoption of the technology. By properly understanding the differences of the self-service types, managers can
provide a beneficial experience to the customer.
Originality/value – By identifying and describing two distinct categories of SSTs, this study allows managers and researchers to better understand
how and why individuals choose to utilize individual self-service technologies. Through understanding the unique dynamics of a public and a private SST
experience, retailers can determine the appropriate strategy for customer adoption based on the utilitarian or hedonic functions of the technology.

Keywords Control, Convenience, Hedonic, Self-service technology, Technical anxiety, Utilitarian

Paper type Research paper

An executive summary for managers and executive slow down the transaction process and create embarrassment
readers can be found at the end of this article. and anxiety (Dabholkar et al., 2003; Meuter et al., 2000).
One area that can aid in understanding the mixed reaction
of customers to SSTs is exploring the unique dynamics and
Introduction differences between SSTs. Previous research has shown that
consumers’ attitudes toward using self-service technology is
For the past decade, self-service technology (SST) has been
heavily dependent on the type of SST (Curran and Meuter,
touted as a solution for addressing the dilemma of how to
2005). Similarly, research by Cunningham et al. (2009) notes
increase the availability of a service while lowering costs. that consumers evaluate SSTs differently depending on the
Subsequently, many retailers were quick to adopt SSTs, but, amount of employee contact infused into the transaction.
much to their disappointment, customers have still been Dimitriadis and Kyrezis (2011) also find that the type of
reluctant to adopt many self-service applications. There has transaction greatly influences attitudes towards different
been a plethora of academic research trying to understand SSTs.
what factors influence customers’ evaluation of an SST Previous research on SSTs has listed a diverse group of
(Dabholkar and Bagozzi, 2002; Meuter et al., 2005). From constructs impacting customer attitudes (Curran et al., 2003;
this research, it has become clear that SSTs can have a Dabholkar and Bagozzi, 2002; Yen, 2005) leading to more
polarizing effect on customers, with some valuing the speed confusion than clarity on the subject. One of the primary
and flexibility of the technology and others noting that SSTs reasons for this confusion is that typically self-service
technology has been examined as an overarching concept
The current issue and full text archive of this journal is available at while failing to realize that all SSTs are not comparable.
www.emeraldinsight.com/0887-6045.htm Customers are not equally receptive to all types of self-service
technology and failing to understand the differences of SST

Journal of Services Marketing


28/1 (2014) 60– 70 Received 9 April 2012
q Emerald Group Publishing Limited [ISSN 0887-6045] Revised 12 September 2012
[DOI 10.1108/JSM-04-2012-0071] Accepted 24 October 2012

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Public and private self-service technology Journal of Services Marketing
J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

use can lead to faulty conclusions. Thus, we propose a interaction, the presence of other waiting patrons may limit
delineation of self-service technology into two categories: the use of such control. Subsequently, early research in self-
public self-service technology and private self-service service shows that the degree of control a customer has in a
technology. This categorization takes into account not only transaction influences the overall perceived value of the
the location of the technology but also the potential for social experience (Lee and Allaway, 2002)
interaction. Self-service technology that is located in high The concept of convenience, based on design and use of
traffic areas with numerous opportunities for directed or SSTs, can also differ by SST type. Public SSTs are designed to
impromptu interaction may be evaluated quite differently by be used quickly because the customer is usually standing
customers compared to SSTs that are located in a customer’s during the transaction. Private SSTS are often used for much
home where interaction with others is not part of the longer transactions because customers can sit or lie down
experience. By exploring the differences of public and private during the transaction. Additionally, the speed of the
self-service technologies, we answer previous calls to explore transaction with public SSTs requires that the technology be
how the unique and situational influences of SSTs influence simplistic and easy to use while private SSTs may have more
consumers self-service decisions (Wang et al., 2012). complexity, enabling the customer to freely browse the system
In order to assess the impact of different SST types on without pressure from the presence of other customers.
customer evaluations, a model of the important factors from The hedonic and utilitarian value customers derive from
prior SST research was constructed. Using the theory of using an SST can also vary by SST type. Customers of private
planned behavior (Ajzen, 1991) as a theoretical foundation, SSTs may place more emphasis on the hedonic value of self-
we explore how relevant constructs such as perceived control, service experience due to the ability to leisurely explore the
convenience and technical anxiety influence customers’ service at their discretion. Previous research notes that
utilitarian and hedonic value judgments across SSTs. The customer comfort level can alter service evaluations (Lloyd
purpose of our study is to explore these differences in and Luk, 2011). Conversely, public SST users may emphasize
customer evaluations of SSTs in order to strengthen the the utilitarian value of SSTs. For public SSTs, the utilitarian
managerial understanding of customer adoption of SSTs. By value of task accomplishment may take on greater weight
understanding the unique dynamics of a public and a private where private SSTs can cater to customers’ intrinsic
SST experience, retailers can determine the appropriate motivation for exploration and trial without experiencing
strategy for customer adoption based on the utilitarian or negative consequences. Also, perceived time pressure in a
hedonic functions of the technology. public service setting can have a greater influence on the
utilitarian than the hedonic value of an experience
Public vs private self-service technology (Strombeck and Wakefield, 2008).
Based on these reasons, failing to account for the
Self-service technology has been defined as any technological differences in types of SSTs could lead to conclusions that
interface that allows customers to produce a service ultimately mask the real reasons customers use self-service
independent of direct service employee involvement (Meuter technology. Customers of public and private SSTs differ in
et al. 2000). In categorizing types of SSTs, previous studies their motivations and interactions with the technology.
have labeled SSTs as “onsite” and “offsite” (Dabholkar and Retailers failing to understand these differences may find
Bagozzi, 2002) or “internet” and “non-internet” (Forbes, implementing an SST to be a challenging and frustrating
2008). We believe that the important differences in SSTs may process.
be attributed to more than just the location of the SST or its
online accessibility. The key to understanding why customers
Utilitarian and hedonic value judgments
respond differently to types of SSTs is the potential social
interaction during a transaction. The presence of other Because public and private SSTs can differ based on the value
customers during a self-service transaction has shown to have customers derive from the experience, it is worthwhile to
adverse effects on customer performance (Dabholkar and describe what value means from a hedonic and a utilitarian
Bagozzi, 2002). Thus, we have conceptualized two types of standpoint. The hedonic value of a self-service experience is
SSTs: public self-service technology and private self-service the self-fulfilling benefit derived from the use of an SST, while
technology. utilitarian value is the instrumental benefit the SST provides
A public self-service technology is an SST located where to the user (Heijden, 2004). In a self-service technology
social interaction can take place between the customer and context, the research on utilitarian and hedonic motivations of
other patrons during the self-service experience. Examples of customers is sporadic and fragmented. Few studies have
public SSTs include kiosks, ATMs, and pay at the pump simultaneously examined hedonic and utilitarian motivations
terminals. Conversely, private self-service technologies are for SST use, although hedonic value has often been studied
located where a customer can interact with a self-service (i.e. Bateson, 1985). For example, Dabholkar (1996) finds
technology without interaction with others. Examples of that the construct of enjoyment has a positive relationship
private SSTs include the Internet, in-room hotel check-out, with expected self-service quality.
and interactive phone systems. In regards to utilitarian value, Curran and Meuter (2007)
One of the key differences between public and private self- find that customers’ overall attitude toward SSTs has a
service technology is control. Private self-service technology positive relationship with utility considerations. Numerous
users have the option to stop the service experience in the studies have examined technical aspects of service
middle of a transaction and resume it at a later time. With this experiences, but little attention has been paid to utilitarian
type of SST, customers dictate the interactive engagement value judgments. Understanding the utility of a self-service
level and pace of the transaction. Although public SSTs may technology may provide a clearer picture of what customers
afford customers the ability to stop or control the pace of their want in a self-service experience.

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Public and private self-service technology Journal of Services Marketing
J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

By exploring the utilitarian and hedonic impact of a self- customer has in the experience can directly influence hedonic
service experience, a retailer can effectively position a public or utilitarian value perceptions.
or private SST to meet the differing needs of customers. The From a utilitarian standpoint, customers are directly
hedonic and utilitarian value of an experience is often based concerned with effectively completing an SST transaction to
on the affective and cognitive components of a customer’s accomplish their goal. The perceived control a customer feels
evaluation of the experience (Voss et al., 2003). Customers in a transaction directly relates to the customer’s ability to find
pursue different types of SSTs for various reasons and the appropriate information, dictate the transaction process,
understanding the overall value judgments from these types of and efficiently complete the transaction (Wolfinbarger and
SSTs can increase trial and adoption of this service. Gilly, 2001). This control is paramount to the effective
completion of a self-service transaction and, ultimately, the
utilitarian benefits. Thus, perceived control will have a positive
Conceptual framework influence on the utilitarian value of a self-service experience:
To examine the differences of public and private SSTs, a H1. A customer’s perceived control will have a positive
conceptual model that assesses the value customers place on relationship to the utilitarian value of an SST
an SST transaction across different settings is developed.
Perceived control can also influence customers’ hedonic value
Using the theory of planned behavior (Ajzen, 1991); we
derived from the service experience. Previous research notes
explore how two constructs, perceived control and
that perceived control is often an antecedent to a customer’s
convenience, can influence customers’ value judgments
emotional state and directly relates to the enjoyment derived
depending on the type of SST used. Additionally, we
from an encounter (Hui and Bateson, 1991). Similarly, Ward
examine how perceived control and convenience influence
and Barnes (2001) find that customers’ control perceptions
the technical anxiety customers feel for public and private
are directly related to feelings of pleasure, arousal, and
SSTs and how this anxiety influences evaluations of hedonic
involvement in a consumption setting. From a self-service
and utilitarian value. Lastly, the impact of utilitarian and
context, Collier and Sherrell (2010) note that customers’
hedonic value on customers’ overall attitude and intentions to
feelings of control have a direct relationship on the hedonic
use SSTs is investigated. Figure 1 details our
component of exploration during an SST experience. As
conceptualization along with the hypothesized relationships
customers gain control over self-service transactions,
between the proposed constructs. Next, a brief discussion will
exploration should increase, creating a more enjoyable
be provided on the importance of these proposed constructs
experience by exposing all the benefits the technology has to
and why they were chosen for our study.
offer. Hence, customers’ perception of control will influence
the hedonic benefits of using the technology:
Perceived control
Perceived control in a self-service context is the belief in one’s H2. A customer’s perceived control will have a positive
ability to command and exert power over the process and relationship to the hedonic value of an SST
outcome of a self-service encounter. Perceived control has
been used as a factor in profiling SST users (Howard and Self-service convenience
Worboys, 2003; Walker et al., 2002), and as a predictive factor Previous research on convenience has primarily focused on
for SST trust and exploration intentions (Collier and Sherrell, the interaction of customers with employees (Berry et al.,
2010). From a self-service perspective, the perceived control a 2002). Convenience in a self-service context has little to do

Figure 1 Conceptual framework for SST intentions model

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Public and private self-service technology Journal of Services Marketing
J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

with employee interaction and is more concerned with the The utilitarian and hedonic evaluation of an SST can also be
interaction of customers and the technology and with the adversely effected by a customer’s technical anxiety. Previous
environment that surrounds the technology. In a self-service research notes that individuals possessing high levels of
context, convenience is defined as the perceived time and anxiety with technology take longer to complete tasks and
effort required in finding and facilitating the use of a self- thus have decreased performance (Fagan et al., 2003). For
service technology (Collier and Sherrell, 2010). Self-service customers who are very task oriented or who place emphasis
convenience is composed of time accessibility and location on the utilitarian value of the experience, technical anxiety
convenience. These elements not only address the perceive can impede their goal to complete a task efficiently.
time and effort of the transaction, but also account for the Numerous studies in the IS field find that the stress and
components of finding and facilitating the transaction. anxiety an end-user feels using a technology will lead to lower
Previous research of online behavior shows that customers’ productivity of a task (Tarafdar et al., 2007; Tarafdar et al.,
perceptions of convenience have a strong relationship with 2010). Similarly, when customers have a heightened degree of
enjoyment or hedonic evaluations (Childers et al., 2001). anxiety using a technology apart from employee assistance,
Additionally, Collier and Sherrell (2010) find that SST users’ the fun or enjoyment part of the service experience will be
exploration intentions are influenced by convenience lowered. Previous research shows that individuals possessing a
perceptions. From a utilitarian standpoint, previous research high level of computer anxiety are more likely to have
also shows how convenience influences the perceived cognitive interference producing debilitating thoughts (Smith
efficiency and effort to accomplish a task (Farquhar and and Caputi, 2001). Additionally, Doronina (1995) states that
Rowley, 2009). With both private and public SSTs, the customers with high technical anxiety look to reduce the
convenience of the self-service transaction affects the amount of time spent using computers. This is in direct
functional and enjoyment benefits derived from using the opposition to the idea of enjoying the use of a self-service
technology to complete a service transaction. Hence, we technology by exploring and browsing through the system.
advance the following hypotheses: Lastly, Venkatesh (2000) states that consumers divert
H3. Self-service convenience will have a positive attention resources to off-task activities of anxiety reduction,
leading to a less pleasurable experience with a technology.
relationship to a customer’s utilitarian value derived
Thus, technical anxiety will have a negative influence on the
from an SST
H4. Self-service convenience will have a positive utilitarian and hedonic value with SST users:
relationship to a customer’s hedonic value derived H7. Technical anxiety will have a negative relationship to a
from an SST customer’s utilitarian value derived from an SST.
H8. Technical anxiety will have a negative relationship to a
customer’s hedonic value derived from an SST.
Technical anxiety
The technical anxiety customers feel while using an SST can
have detrimental effects on the evaluation of a service Intentions to use an SST
experience. Technical anxiety is the fear people feel when Both utilitarian and hedonic value can significantly influence a
considering or using technology (Cambre and Cook, 1985). customer’s attitude toward using an SST. Previous research
Previous SST studies show that technical anxiety lowers trial shows that these value judgments influence customers’
and usage intentions (Meuter et al., 2005; Meuter et al., 2003; attitudes toward using a technology (Overby and Lee,
Oyedele and Simpson, 2007). Additionally, lack of control 2006). One reason customers forego employee interaction in
can lead to increased stress and anxiety with SSTs (Lunardo favor of an SST is the perceived utility of the technology. As
and Mbengue, 2009). Thus, the following hypothesis is customers see a clearly defined benefit from using an SST,
advanced: this should influence the attitudes toward the technology.
And. with many SSTs, the enjoyment of exploring the options
H5. Perceived control will have a negative relationship to
of a retailer can greatly influence the overall attitude about
customers’ technical anxiety using the technology.
The convenience of an SST can also influence the anxiety In order to fully understand the impact on self-service
customers feel while using the technology. An inconvenient users, we extend the conceptual model to examine the
location that requires the customer to account for more attitudes-intentions relationship. Substantial support in the
environmental factors surrounding the technology can self-service literature justifies that customer’s attitude toward
increase the anxiety of a customer (Durkin, 2004). Previous an SST influences intentions to use the technology in the
research shows that the perceived inconvenience of a future (Curran and Meuter, 2005; Curran et al., 2003;
technology or servicescape can produce negative emotions Dabholkar, 1996; Dabholkar and Bagozzi, 2002). Therefore,
and avoidance behaviors (Bitner, 1992; Rosenbaum and the following hypotheses are tested in this study:
Massiah, 2011). Additionally, Parish et al. (2008) notes that
H9. The utilitarian value derived from a self-service
convenience perceptions lower stress in accomplishing a task.
experience will have a positive relationship to a
The ability of the customer to choose when and where a customer’s attitude toward using a self-service technology
transaction will take place can create an environment than can H10. The hedonic value derived from a self-service experience
reduce the anxiety of using a technology to perform a service will have a positive relationship to a customer’s attitude
task. Previous self-service research has noted that the toward using a self-service technology
convenience of a self-service transaction allows the customer H11. A customer’s attitude toward using a self-service
to feel less pressure technology will have a positive relationship with the
H6. Self-service convenience will have a negative intentions of the customer to use the self-service
relationship to customers’ technical anxiety technology

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Public and private self-service technology Journal of Services Marketing
J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

Methodology CFI ¼ 0.97, RMSEA ¼ 0.04). The reliability of the scale


items were calculated again and all scales had an acceptable
Study 1 – private self-service technology level of reliability (a $ 0.70). To further establish the
To test our conceptual model and determine the differences of convergent and discriminant validity of the measures, we
public and private self-service technology, survey followed Fornell and Larker’s (1981) framework by
methodology was used. By surveying both public and calculating the average variance extracted by each construct
private self-service users, the authors can adequately capture compared to the shared variance between constructs. Each
the dynamics of each construct across contexts. For the construct had an average variance extracted over 0.50, and no
private SST, a survey consisting of 30 items was adapted from
shared variance exceeded the average variance extracted per
existing research and slightly altered to apply to the specific
construct, thus, supporting the convergent and discriminant
SST. The measures for control and convenience were adapted
validity of the construct items.
from Dabholkar (1996), Yen and Gwinner (2003), Childers
Since the data were collected at a single point in time,
et al. (2001), and Zhu (2002). The constructs of utilitarian
common method bias is a potential concern. To account for
and hedonic value were adapted from Babin et al. (1994) and
this bias, we followed Malhotra et al.’s (2007)
Childers et al. (2001). The measures for technical anxiety,
recommendation by using the marker variable technique.
attitude toward SSTs, and intentions were adapted from
The marker variable used was price consciousness. We
Meuter et al. (2005), Dabholkar and Bagozzi (2002), and
performed an analysis of correlation between the marker
Oliver and Swan (1989).
variable and all other constructs in the study. Taking the
A national company specializing in providing movies,
second lowest correlation, an adjusted correlation was created
sports, and music entertainment to customers via a self-
between the constructs in the model. Using the marker
service technology located in the home was selected for this
variable correlation, we partialled out its effect from the
study. The survey was initially pretested on 500 randomly
uncorrected correlations in the model. The adjusted
selected patrons of the entertainment company with varying
levels of self-service usage. To encourage response, a credit to correlation matrix was then used as input in AMOS 17 to
the customer’s monthly bill was awarded to each respondent test the structural relationships in the model. The results of
who completed and returned the survey. At the conclusion of the structural analysis found that the model was an excellent
the pretest, the coefficient alpha for each construct measure fit to the data (x2 ¼ 33.33, df ¼ 13, NFI ¼ 0.99, TLI ¼ 0.99,
was calculated and all measures exhibited an acceptable level CFI ¼ 0.99, RMSEA ¼ 0.02). After establishing model fit,
of reliability (a . ¼ 0.70, Nunnally and Bernstein, 1994). An the hypothesized relationships were then analyzed. Table II
exploratory factor analysis was also conducted where each displays the scale means, standard deviations, and inter-
item loaded as expected on its respective construct. correlations between constructs. Table III shows the
After establishing the internal consistency and standardized path estimates and t-values for each of the
unidimensionality of the scale items, an invitation for the hypothesized model relationships.
survey was mailed to 11,770 SST patrons of the As shown in Table III, perceived control had a significant
entertainment company. These patrons spanned three relationship to both utilitarian and hedonic value. Based on
southeastern states and included both rural and urban the standardized estimates, perceived control had a slightly
customers. All patrons that returned a completed survey stronger relationship with utilitarian value (g11 ¼ 0.65,
were given a credit to their monthly bill. The invitation gave t ¼ 26.53) than hedonic value evaluations (g21 ¼ 0.51,
customers the option to fill out the survey online or have a t ¼ 19.65). Customers’ convenience perceptions also had a
hardcopy survey mailed to them along with a self-addressed significant relationship to both utilitarian and hedonic value
envelope. A total of 1,506 patrons responded to the invitation supporting H3 and H4. Of the two relationships, convenience
and filled out an online survey. Requests for a hard copy had a stronger relative influence on hedonic value
survey were received from 213 patrons though only 107 were ( g22 ¼ 0.19, t ¼ 6.84) supporting the importance of
returned. Three weeks after the initial invitation, all patrons convenience on the enjoyment derived from using a self-
who had not responded to survey were mailed a reminder. An service technology. Only convenience had a significant
additional 593 patrons filled out an online survey and 27 relationship with technical anxiety. In a private SST setting,
hardcopy surveys were returned. A total of 2,235 patrons perceived control had little influence on technical anxiety.
responded to the survey producing a response rate of 19 Technical anxiety had a significant influence on customers’
percent. In order to account for nonresponse bias, we hedonic evaluations supporting H8 but had a nonsignificant
followed Armstrong and Overton’s (1977) recommendation relationship with utilitarian value. Utilitarian and hedonic
by extrapolating across waves of respondents. We compared evaluations had a significant relationship with customer
the first wave and second wave of respondents on all attitudes with utilitarian value (b41 ¼ 0.35, t ¼ 11.65) having
demographic and study variables in order to fully test if a stronger influence than hedonic value. Further supporting
nonresponse bias had occurred. The results of the analysis the existing research on the theory of planned behavior, our
found no significant difference between the groups. research did find a strong and significant relationship from
A confirmatory factor analysis was then performed using customer attitudes to intentions supporting H11.
AMOS 17 to determine measurement model fit. The results From this analysis, it is clear that convenience and
of the confirmatory factor analysis indicate that each item perceived control have a heavy influence on the functional
loaded significantly on its respective underlying concept and aspects and enjoyment derived from using an SST. Based on
all loadings were significant. To view the complete list of items these results, we decided that the conceptual model did not
and loadings see Table I. The fit indices also indicated that require any reformulation. To further explore the viability of
the measurement model was a good fit to the data the model and to explore the potential differences of private
( x2 ¼ 1782.80, df ¼ 343, NFI ¼ 0.97, IFI ¼ 0.97, and public SSTs, a second study was undertaken.

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Public and private self-service technology Journal of Services Marketing
J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

Table I Confirmatory factor and reliability analysis study 1


Standardized factor
Self-service items loadings t-values
Ease of use (a 5 0.871)
(This SST) is easy to use 0.971 **
I find using (this SST) to be very user friendly 0.947 93.77
Using (this SST) is confusing 0.691 40.18
My interaction with (this SST) does not require a lot of effort 0.700 33.57
Speed of transaction (a 5 0.948)
I am able to complete a transaction with (this SST) without spending too much time 0.923 **
(This SST) saves me time 0.885 64.79
(This SST) lets me complete a transaction quickly 0.932 92.27
Time accessibility (a 5 0.925)
This SST) allows me to initiate a transaction whenever I choose 0.906 **
This SST) allows me to initiate a transaction at a convenient time to me 0.951 68.17
Perceived Control (a 5 0.901)
I feel in control using (this SST) 0.916 48.64
This SST) lets the customer be in charge 0.924 51.43
While using (this SST), I feel decisive 0.687 34.37
This SST) gives me more control over renting movies 0.874 **
Utilitarian value (a 5 0.882)
I accomplished just what I wanted to with (this SST) 0.875 **
I feel really smart about using (this SST) to accomplish my tasks 0.770 41.73
The use of (this SST) increases my productivity 0.714 33.25
The use of (this SST) enhances my effectiveness in purchasing entertainment products 0.814 38.55
Overall, I find (this SST) to be useful in purchasing entertainment products 0.913 46.98
Hedonic value (a 5 0.909)
Compared to the traditional process of purchasing entertainment products, the time spent 0.885 **
using (this SST) was enjoyable
While using (this SST), I found my experience enjoyable 0.883 56.59
It is fun to purchase entertainment products using (this SST) 0.820 47.43
Technical anxiety (a 5 0.872)
I hesitate to use (this SST) for fear of making a mistake I cannot correct 0.807 42.67
I feel insecure about my ability to use (this SST) 0.852 26.62
I have avoided SSTs because it can be somewhat intimidating 0.815 **
Attitude toward using SSTs (a 5 0.960)
semantic differential – Pleasant-unpleasant 0.916 73.99
semantic differential – Good-bad 0.947 **
semantic differential – Favorable-unfavorable 0.932 72.91
Intentions of use SSTs (a 5 0.942)
Semantic differential – Very likely-very unlikely 0.861 42.44
Semantic differential – Possible-impossible 0.887 **
Semantic differential – Very probable-not probable 0.883 52.43
2
Notes: x ¼ 1,782.80, df ¼ 343, IFI ¼ 0.97, CFI ¼ 0.97, NFI ¼ 0.97, RMSEA ¼ 0.04; * *denotes a constrained relationship to 1.00 in order for identification

Study 2 – public self-service technology customers finished their self-service transaction through the
After establishing the conceptual model with a private self- automated box office, movie theater employees handed
service technology, a public SST was then tested. The setting patrons an invitation to participate in an online survey
for the second study was with a national movie theater chain about their experience. Patrons who wanted to participate in
using a self-service technology called an Automated Box the survey, but did not have internet access, were asked to
Office (ABO). This SST allowed patrons to purchase tickets write their name and address on the back of the invitation
for current and future shows via four self-service kiosks card and a hardcopy survey with a self-addressed envelope
located near the theater entrance. For study 2, the same items would be mailed to them. To encourage participation, survey
were used in the survey instrument as Study 1 with a slight respondents were entered into a raffle to win gift cards from
change in wording to apply to the specific SST. Like Study 1, the movie theater.
customers were given an invitation to take the survey via the A total of 213 movie patrons responded to the self-service
internet or have a hardcopy mailed to them. These invitations survey with 59 percent of the sample being female. The
were handed to customers by movie theater employees. As average age of respondent was 34. Due to the nature of the

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Public and private self-service technology Journal of Services Marketing
J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

Table II Means, standard deviations and correlations for private and public SST users
Private SST Public SST Intercorrelation of constructs
Mean SD Mean SD 1 2 3 4 5 6 7 8
1. Perceived control 5.83 1.26 5.67 1.29 1 20.38 0.52 0.40 0.32 0.31 0.48 0.43
2. Technical anxiety 2.17 1.36 2.31 1.37 20.26 1 20.33 20.34 20.39 20.37 20.26 20.23
3. Utilitarian value 5.51 1.17 5.44 1.11 0.73 20.20 1 0.63 0.51 0.50 0.37 0.31
4. Hedonic value 5.73 1.21 5.25 1.22 0.68 20.26 0.80 1 0.46 0.45 0.22 0.20
5. Attitude 6.30 0.80 4.23 0.87a 0.39 20.19 0.51 0.48 1 0.70 0.21 0.19
6. Intentions to use SST 6.19 0.92 4.34 0.96a 0.31 20.15 0.40 0.38 0.69 1 0.20 0.18
7. Time convenience 6.13 1.35 6.19 1.08 0.63 20.27 0.50 0.51 0.28 0.21 1 0.61
8. Location convenience 6.42 1.21 6.19 1.03 0.65 20.28 0.51 0.52 0.29 0.72 0.22 1
Notes: Correlations above the diagonal are for Public SST. Correlations below the diagonal are for Private SST. aAttitudes and Intentions were on a five-point
scale for public SSTs and seven-point scale for Private SSTs

Table III Structural model test results for public and private SSTs
Private SST Public SST
Standardized weight t-value Standardized weight t-value
Convenience ! Time 0.83 41.45 0.83 7.76
a a
Convenience ! Location 0.86 0.73
Convenience ! Utilitarian Value 0.10 3.80 0.18 2.14
Convenience ! Hedonic Value 0.19 6.84 0.02 0.24
Control ! Utilitarian Value 0.65 26.53 0.36 4.65
Control ! Hedonic Value 0.51 19.65 0.30 3.68
Convenience ! Technical Anxiety 20.29 27.91 2 0.13 2 1.48
Control ! Technical Anxiety 20.03 21.03 2 0.29 2 3.58
Technical Anxiety ! Utilitarian Value 0.003 0.21 2 0.13 2 2.14
Technical Anxiety ! Hedonic Value 20.06 23.79 2 0.21 2 3.23
Utilitarian Value ! Attitude 0.35 11.65 0.36 4.90
Hedonic Value ! Attitude 0.20 6.65 0.23 3.09
Attitude ! Intentions 0.69 45.05 0.70 14.27
Model fit statistics
Chi-square 33.33 29.54
Df 13 13
NFI 0.99 0.95
CFI 0.99 0.97
TLI 0.99 0.94
RMSEA 0.02 0.07
Squared multiple correlations
Technical anxiety 0.10 0.16
Utilitarian value 0.53 0.31
Hedonic value 0.48 0.20
Attitude 0.27 0.29
Intent 0.47 0.49
Note: a ¼ No t-value- constrained for identification purposes

survey, ascertaining the nonrespondents for this study was not assurance that lagging respondents were the same as early
possible. Management at the movie theater chain agreed to responders.
make every effort to hand out an invitation to every patron The measurement model for the survey was then analyzed
during the length of the study, but we are uncertain if all SST using AMOS 17. A confirmatory factor analysis was
patrons who entered the theater received an invitation. In performed and indicated that each item loaded significantly
efforts to account for nonresponse bias, the first 25 percent of on its underlying concept (t-values ranged from 7.08-26.15).
the sample was compared to the last 25 percent on all The reliability of each construct was calculated and all
demographics and variables of the study. The results showed measures had a coefficient alpha greater than 0.70. The fit
there was no significant difference between the groups. This is indices for the measurement model shows that the model has
not a true test of nonresponse bias, but at least provides some an acceptable fit to the data (IFI ¼ 0.94, CFI ¼ 0.94,

66
Public and private self-service technology Journal of Services Marketing
J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

RMSEA ¼ 0.06). Since the survey items were slightly service experience. Conversely, with private SSTs,
changed to apply to a public SST, we assessed the convenience has a stronger influence to the hedonic benefit
measurement invariance across the two groups using the of the experience.
procedure suggested by Hair et al. (2006). We constrained all As for perceptions of control, previous research has noted
but one item for each construct (except for utilitarian value that when customers are faced with too many options and
which two equality constraints were removed) and compared sense a lack of control they will psychologically “shut down”
the two groups for metric invariance. The resulting x2- (Wind and Rangaswamy, 2001). Our research found that the
difference statistic indicated that model fit did not impact of control depended on the type of SST. With public
significantly deteriorate, supporting partial metric invariance SSTs, a lack of control did heighten anxiety and lead to
of the measures across the two studies (Hair et al., 2006). avoidance but with private SSTs a lack of control did not
Like study 1, the average variance extracted along with reproduce the same effect. Private SST users were more
shared variance between constructs was calculated to receptive to the technology in the face of less control
determine the convergent and discriminant validity of the perceptions. The dynamics of other customers not present
measures. No shared variance between constructs exceeded during the transaction or the ability to enact the transaction at
the average variance extracted per construct and all constructs their own pace may have contributed to these findings. We did
had an average variance extracted over 0.50. Consistent with find that control perceptions are still important to the overall
the first study, common method bias was assessed by using a utilitarian and hedonic benefit of the experience regardless of
marker variable. The second lowest correlation of the marker SST type further emphasizing the role control plays in the
variable was used to create an adjusted correlation matrix in efficiency and enjoyment of an SST experience.
which this marker variable correlation was partialled out of Consistent with previous research, we founnd that technical
the uncorrected correlation matrix. After adjusting the anxiety can have a negative influence on the evaluation of an
correlations for each construct, the revised correlation SST (Meuter et al., 2003). Unlike other studies, we revealed
matrix was used as input to assess the structural that technical anxiety has a stronger relative influence on the
relationships of the public self-service setting. perceived utilitarian value with public SSTs compared to
Using AMOS 17, the structural analysis was then private SSTs. The location of the SST and the possibility for
performed and the model exhibited a good fit to the data social interaction with customers greatly influenced the
(x2 ¼ 29.54, df ¼ 13, NFI ¼ 0.95, TLI ¼ 0.94, CFI ¼ 0.97, anxiety present while trying to accomplish a task.
RMSEA ¼ 0.07). After assessing the model fit, the structural Prior research on SSTs notes that one of the main criteria
relationships were then analyzed (see Table III). Unlike the for success is the emphasis of utilitarian aspects of the
first study, the construct of convenience had a different technology (Durkin, 2004; Jones, 2002). This research shows
relationship with customers’ utilitarian and hedonic value that customers’ attitudes toward SSTs are not solely based on
judgments. Convenience had a nonsignificant relationship to the utilitarian aspects of the technology. Both the utilitarian
hedonic value while a strong relationship to utilitarian value and hedonic benefits of a self-service experience had a strong
judgments. Perceived control had a significant relationship to influence on the attitude and intentions of using an SST. The
both utilitarian and hedonic value with roughly an equivalent type of SST often dominated the importance of these
influence on both constructs. Opposite of study 1, control had perceived benefits but highlight that customers evaluate the
a strong negative relationship with technical anxiety quality of the technology by more than just its efficiency.
( g31 ¼ 2 0.29, t ¼ 2 3.58) but convenience had little From a managerial perspective, this research offers several
influence on technical anxiety towards using an SST. insights on how to effectively implement an organization’s
Also contrary to study 1, technical anxiety had a significant self-service technology. A primary reason why self-service
influence on utilitarian value (b13 ¼ 2 0.13, t ¼ 2 2.14) technology is not being effectively adopted by many
where little influence was found in the private SST setting. customers may be the direct result of trying to force
Consistent with study 1, technical anxiety did have a negative functions or applications in a public SST that are better
relationship with hedonic value supporting H8. Additionally, suited for a private SST. With public SSTs, managers need to
both utilitarian and hedonic value had a positive relationship focus on customer convenience as it directly relates to easily
to customer attitudes with utilitarian value having a stronger completing a transaction. For instance, a service provider may
relative influence (b41 ¼ 0.36, t ¼ 4.90). Lastly, customer think offering a seat at a self-service application would
attitudes had a strong relationship with intentions supporting enhance the customer’s experience, whereas a public SST
H11. customer may want a quick transaction and feels sitting would
only slow down the process. On the other hand, with a private
SST that has a greater opportunity for exploration, having a
Discussion
seat could not only enhance the experience but create a
The goal of this study was to explore the potential differences greater opportunity for cross selling. Managers of self-service
of public and private SSTs to understand how these varying applications need to understand that convenience means very
SST types can influence consumer attitudes. The results of different things across public and private SSTs. With public
the analysis across contexts show differences in motivation SSTs, important convenience factors are those elements that
and usage regarding SSTs. The first area that differed across speed up the transaction, whereas with private SSTs,
SSTs was the convenience perceptions of consumers. improving convenience can help extend a service transaction.
Previous qualitative SST research has lauded the There are numerous examples of customers’ rejecting SSTs
importance of convenience (Meuter et al., 2000), but our in public retail settings that try to get customers to browse
study showed that the influence of convenience varies across through the technology like a catalogue. The reason for this
public and private SSTs. With public SSTs, convenience failure is that exploration of products, offers, or incentives is
plays an important role with the utilitarian values of the self- best served in a private SST not a public SST. With private

67
Public and private self-service technology Journal of Services Marketing
J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

SSTs, customers do not have the perceived pressure from Armstrong, J.S. and Overton, T.S. (1977), “Estimating
other patrons to complete a transaction quickly and they can nonresponse bias in mail surveys”, Journal of Marketing
start and stop a service experience with no ramification to Research, Vol. 14 No. 3, pp. 396-402.
other customers. For example, one way that Redbox movie Babin, B.J., Darden, W.R. and Griffin, M. (1994), “Work
SST enhanced their customer experience was allowing and/or fun: measuring hedonic and utilitarian shopping
customers to browse and reserve movie titles online thus value”, Journal of Consumer Research, Vol. 20, pp. 644-656.
creating the experience at the Redbox location a utilitarian Bateson, J.E.G. (1985), “Self-service consumer: an exploratory
function of simply picking up the movie. Customers’ study”, Journal of Retailing, Vol. 61 No. 3, pp. 49-76.
frustration with standing at the SST browsing for a movie Berry, L.L., Seiders, K. and Grewal, D. (2002),
has been removed to create a more enjoyable and directed “Understanding service convenience”, Journal of
customer experience. Hence, the company is using its private Marketing, Vol. 66 No. 3, pp. 1-17.
SST function to focus on the hedonic aspects of the Bitner, M.J. (1992), “Servicescapes: the impact of physical
experience and the public SST to focus on the ultimate surroundings on customers and employees”, Journal of
utilitarian function of picking up and returning movies. Marketing, Vol. 56 No. 2, pp. 57-71.
With both public and private self-service technology, Cambre, M.A. and Cook, D.L. (1985), “Computer anxiety:
service providers need to focus on the utility of the definition, measurement, and correlates”, Journal of
technology. From our research, it is clear that customers are Educational Computing Research, Vol. 1 No. 1, pp. 37-54.
willing to take on a partial employee role only if they see a Childers, T.L., Carr, C.L., Peck, J. and Carson, S. (2001),
directed benefit to them. Even in a private SST, customers “Hedonic and utilitarian motivations for online retail
must still be able to efficiently complete a transaction at their shopping behavior”, Journal of Retailing, Vol. 77 No. 4,
choosing. Private SSTs have a higher capacity for diverse pp. 511-535.
functions and options but some customers still want the Collier, J.E. and Sherrell, D.L. (2010), “Examining the
option for a quick transaction. The goal of an SST should be influence of control and convenience in a self-service
to give customers the option to satisfy its hedonic wants while setting”, Journal of the Academy of Marketing Science, Vol. 38
at the same time offering a strong utilitarian benefit. No. 4, pp. 490-509.
Cunningham, L.F., Young, C.E. and Gerlach, J. (2009), “A
comparison of consumer views of traditional services and
Limitations and future research self-service technologies”, Journal of Services Marketing,
The insights generated by the present study must be Vol. 23 No. 1, pp. 11-23.
considered in the context of its limitations. First, we used Curran, J.M. and Meuter, M.L. (2005), “Self-service
cross sectional rather than longitudinal data. Second, we technology adoption: comparing three technologies”,
conducted both the private and public SST research in the Journal of Services Marketing, Vol. 19 No. 2, pp. 103-113.
same industry. Expanding this research into other contexts Curran, J.M. and Meuter, M.L. (2007), “Encouraging
would add further validity to the differences found in these existing customers to switch to self-service technologies:
studies. For future research, there are numerous topics in self- put a little fun in their lives”, Journal of Marketing Theory
service research that need to be explored. For example, future and Practice, Vol. 15 No. 4, pp. 283-298.
research could explore if service recovery needs to take on a Curran, J.M., Meuter, M.L. and Surprenant, C.F. (2003),
different form and function with public and private SSTs. “Intentions to use self-service technologies: a confluence of
There are also multiple other constructs that could be multiple attitudes”, Journal of Service Research, Vol. 5 No. 3,
included in our conceptual model. For example, speed of pp. 209-224.
transaction has been listed in numerous qualitative SST Dabholkar, P.A. (1996), “Consumer evaluations of new
studies as important but has delivered mixed results technology-based self-service options: an investigation of
empirically. This variation in importance could be examined alternative models of service quality”, International Journal
from a public and a private SST standpoint. Trust is another of Research in Marketing, Vol. 13 No. 1, pp. 29-51.
construct that could differ across contexts with customers Dabholkar, P.A. and Bagozzi, R.P. (2002), “An attitudinal
potentially placing less trust in a public SST than a private model of technology-based self service: moderating effects
SST. Similar to trust, how does fairness influence customers of consumer traits and situational factors”, Journal of the
when they are being subtly pushed toward using a self-service Academy of Marketing Science, Vol. 30 No. 3, pp. 184-201.
technology in the face of reduced employee interaction Dabholkar, P.A., Bobbitt, L.M. and Lee, E.-J. (2003),
option? In this situation, will customers react more negatively “Understanding consumer motivation and behavior related
to a public “push” toward a SST compare to a private SST? to self-scanning in retailing”, International Journal of Service
Overall, it is our hope that this research spurs continued Industry Management, Vol. 14 No. 1, pp. 59-95.
interest in the field of self-service technology. By fully Dimitriadis, S. and Kyrezis, N. (2011), “The effect of trust,
understanding the unique differences between public and channel technology, and transaction type on the adoption of
private SSTs, service providers can target and implement the self-service bank channels”, Service Industries Journal,
appropriate functions and options to customers. Vol. 31 No. 8, pp. 1293-1310.
Doronina, O.V. (1995), “Fear of computers: its nature,
prevention, and cure”, Russian Social Science Review, Vol. 36
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J.E. Collier, D.L. Sherrell, E. Babakus and A. Blakeney Horky Volume 28 · Number 1 · 2014 · 60 –70

Corresponding author service. Conversely, public SST users may emphasize the
utilitarian value. For public SSTs, the utilitarian value of task
Dr Joel E. Collier can be contacted at: jcollier@cobilan. accomplishment may take on greater weight where private
msstate.edu
SSTs can cater to customers’ intrinsic motivation for
exploration and trial without experiencing negative
Executive summary and implications for consequences. Also, perceived time pressure in a public
managers and executives service setting can have a greater influence on the utilitarian
This summary has been provided to allow managers and executives than the hedonic value of an experience.
a rapid appreciation of the content of this article. Those with a Many retailers who were quick to adopt SSTs as a way of
particular interest in the topic covered may then read the article in increasing the availability of service while lowering costs have
toto to take advantage of the more comprehensive description of the been disappointed at customers’ reluctance to adopt many of
research undertaken and its results to get the full benefits of the their applications. When trying to discover why this is, it must
material present. be appreciated that customers are not equally receptive to all
types of SST and failing to understand the differences of use
You either like it or you hate it – that just about sums up can lead to faulty conclusions..A primary reason why self-
customers’ attitudes towards self-service technology. If you service technology is not being effectively adopted by many
are in a hurry and have just a few items to buy at the customers may be the direct result of trying to force functions
supermarket, you might love the convenience and speed of the or applications in a public SST that are better suited for a
self-service tills. On the other hand you might despair at the private SST. There are numerous examples of customers’
“glitches” that frequently occur when you then have to rejecting SSTs in public retail settings that try to get
summon a store employee, or be embarrassed if you are customers to browse through the technology like a catalogue.
holding up a queue because you cannot operate the The reason for this failure is that exploration of products,
technology as efficiently as you – or those behind you – offers, or incentives is best served in a private SST not a
think you should. public SST.
The same can be said of bank ATMs or gas station pay-at- In “Understanding the differences of public and private
the-pump facilities – all examples of the self-service self-service technology” Dr Joel E. Collier et al. explore how
customers carry out “in public.” Then there are the self- relevant constructs such as perceived control, convenience
service tasks which customers carry out in a more private and technical anxiety influence customers’ utilitarian and
arena – possibly in the comfort of their own home where hedonic value judgments across SSTs. By understanding the
there aren’t any other customers looking on or glancing at unique dynamics of a public and a private SST experience,
their watches, but equally there aren’t any store employees on retailers can determine the appropriate strategy for customer
hand to help out. Examples of “private” self-service include adoption based on the utilitarian or hedonic functions of the
using the internet, in-room hotel check-outs and interactive technology.
telephone systems. One of the key differences is control. With public SSTs, managers need to focus on customer
Private SST users have the option to stop the service convenience as it directly relates to easily completing a
experience in the middle of a transaction and resume it later.
transaction. For instance, a service provider may think
With this type of SST customers dictate the interactive
offering a seat at a self-service application would enhance the
engagement level and pace of the transaction. Although
customer’s experience, whereas a public SST customer may
public SSTs may afford customers the ability to stop or
want a quick transaction and feels sitting would only slow
control the pace of their interaction, the presence of other
down the process. On the other hand, with a private SST that
waiting patrons may limit the use of such control.
Public SSTs are designed to be used quickly because the has a greater opportunity for exploration, having a seat could
customer is usually standing during the transaction. Private not only enhance the experience but create a greater
SSTs are often used for much longer transactions because opportunity for cross-selling. Managers of self-service
customers can sit down during the transaction. Additionally, applications need to understand that convenience means
the speed of the transaction with public SSTs requires that very different things across public and private SSTs. With
the technology be simplistic and easy to use while private public SSTs, important convenience factors are those
SSTs may be more complex, enabling the customer to freely elements that speed up the transaction, whereas with private
browse the system without pressure from the presence of SSTs, improving convenience can help extend a service
other customers. transaction.
The hedonic and utilitarian value customers derive from
using an SST can also vary by SST type. Customers of private (A précis of the article “Understanding the differences of public and
SSTs may place more emphasis on the hedonic value of a self- private self-service technology”. Supplied by Marketing
service experience due to the ability to leisurely explore the Consultants for Emerald.)

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