Skip to main content

Advertisement

Log in

Creating a commercially compelling smart service encounter

  • Empirical article
  • Published:
Service Business Aims and scope Submit manuscript

Abstract

This study explores the nature and characteristics of smart service encounters and their impact on customer value and price premiums using a task-based laboratory experiment and analyzing 232 valid questionnaire responses. The responses were analyzed using structural equation modeling to test the hypotheses. The empirical results revealed that a smart service encounter incorporates audiovisual, haptic, rehearsability, symbol sets, and reprocessability elements, and increases consumers’ willingness to pay a price premium via hedonic, functional, and social value. Service businesses can create commercially compelling smart service encounters that maximize earnings and profits based on these findings.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Source this research

Fig. 2
Fig. 3

Source this study

Fig. 4

Similar content being viewed by others

References

  • Aaker D (1991) Brand equity. La gestione del valore della marca

  • Aaker DA (1996) Measuring brand equity across products and markets. Calif Manag Rev 38(3):102–120

    Article  Google Scholar 

  • Babin BJ, Darden WR, Griffin M (1994) Work and/or fun: measuring hedonic and utilitarian shopping value. J Consum Res 20(4):644–656

    Article  Google Scholar 

  • Baier D, Rese A, Schreiber S (2015) Analyzing online reviews to measure augmented reality acceptance at the point of sale: the case of IKEA. Successful Technological Integration for Competitive Advantage in Retail Settings. IGI Global, pp 168–189

  • Barclay D, Higgins C, Thompson R (1995) The partial least squares (PLS) approach to causal modeling: personal computer adoption and use as an illustration. Technol Stud 2(2):285–309

    Google Scholar 

  • Blázquez M (2014) Fashion shopping in multichannel retail: the role of technology in enhancing the customer experience. Int J Electron Commer 18(4):97–116

    Article  Google Scholar 

  • Cai S, Wang X, Chiang FK (2014) A case study of augmented reality simulation system application in a chemistry course. Comput Hum Behav 37:31–40

    Article  Google Scholar 

  • Carter M, Grover V (2015) Me, my self, and I(T): conceptualizing information technology identity and its implications. MIS Q 39(4):931–957

    Article  Google Scholar 

  • Chang HS (2008) Increasing hotel customer value through service quality cues in Taiwan. Serv Ind J 28(1):73–84

    Article  Google Scholar 

  • Coovert MD, Lee T, Shindev I, Sun Y (2014) Spatial augmented reality as a method for a mobile robot to communicate intended movement. Comput Hum Behav 34:241–248

    Article  Google Scholar 

  • Cotte J, Chowdhury TG, Ratneshwar S, Ricci LM (2006) Pleasure or utility? Time planning style and web usage behaviors. J Interact Mark 20(1):45–57

    Article  Google Scholar 

  • Dacko SG (2016) Enabling smart retail settings via mobile augmented reality shopping apps. Technol Forecast Soc Change 124:243–256

    Article  Google Scholar 

  • Demirkan H, Spohrer J (2014) Developing a framework to improve virtual shopping in digital malls with intelligent self-service systems. J Retail Consum Serv 21(5):860–868

    Article  Google Scholar 

  • Deng Z, Lu Y, Wei KK, Zhang J (2010) Understanding customer satisfaction and loyalty: an empirical study of mobile instant messages in China. Int J Inf Manag 30(4):289–300

    Article  Google Scholar 

  • Dennis AR, Fuller RM, Valacich JS (2008) Media, tasks, and communication processes: a theory of media synchronicity. MIS Q 32(3):575–600

    Article  Google Scholar 

  • Fazio RH, Zanna MP (1981) Direct experience and attitude-behavior consistency. Adv Exp Soc Psychol 14:161–202

    Article  Google Scholar 

  • Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18(1):39–50

    Article  Google Scholar 

  • Geum Y, Jeon H, Lee H (2016) Developing new smart services using integrated morphological analysis: integration of the market-pull and technology-push approach. Serv Bus 10(3):531–555

    Article  Google Scholar 

  • Hanus MD, Fox J (2015) Persuasive avatars: the effects of customizing a virtual salesperson’s appearance on brand liking and purchase intentions. Int J Hum-Comput Stud 84:33–40

    Article  Google Scholar 

  • Harkness J (2011) Guidelines for best practice in cross-cultural surveys, 3rd edn. Survey Research Center, Institute for Social Research, University of Michigan, Arbor

    Google Scholar 

  • Hilken T, de Ruyter K, Chylinski M, Mahr D, Keeling DI (2017) Augmenting the eye of the beholder: exploring the strategic potential of augmented reality to enhance online service experiences. DOI, J Acad Mark Sci. doi:10.1007/s11747-017-0541-x

    Google Scholar 

  • Hirschman EC, Holbrook MB (1982) Hedonic consumption: emerging concepts, methods and propositions. J Mark 46(3):92–101

    Article  Google Scholar 

  • Huang TL, Liao SL (2015) A model of the acceptance of augmented-reality interactive technology: the moderating role of cognitive innovativeness. Electron Commer Res 15(2):269–295

    Article  Google Scholar 

  • Huang TL, Liu FH (2014) Formation of augmented-reality interactive technology’s persuasive effects from the perspective of experiential value. Internet Res 24(1):82–109

    Article  Google Scholar 

  • Huang TL, Tseng CH (2015) Using augmented reality to reinforce vivid memories and produce a digital interactive experience. J Electron Commer Res 16(4):307–328

    Google Scholar 

  • Javornik A (2016) Augmented reality: research agenda for studying the impact of its media characteristics on consumer behavior. J Retail Consum Serv 30:252–261

    Article  Google Scholar 

  • Jiang L, Jun M, Yang Z (2016) Customer-perceived value and loyalty: how do key service quality dimensions matter in the context of B2C e-commerce? Serv Bus 10(2):301–317

    Article  Google Scholar 

  • Keller KL (1993) Conceptualizing, measuring, and managing customer-based brand equity. J Mark 57(1):1–22

    Article  Google Scholar 

  • Keng CJ, Lin HY (2006) Impact of telepresence levels on internet advertising effects. Cyber Psychol Behav 9(1):82–94

    Article  Google Scholar 

  • Keng CJ, Huang TL, Zheng LJ, Hsu MK (2007) Modeling service encounters and customer experiential value in retailing: an empirical investigation of shopping mall customers in Taiwan. Int J Serv Ind Manag 18(4):349–367

    Article  Google Scholar 

  • Lee H, Seol H, Min H, Geum Y (2017) The identification of new service opportunities: a case-based morphological analysis. Serv Bus 11(1):191–206

    Article  Google Scholar 

  • Maklan S, Peppard J, Klaus P (2015) Show me the money: improving our understanding of how organizations generate return from technology-led marketing change. Eur J Mark 49(3/4):561–595

    Article  Google Scholar 

  • Merle A, Senecal S, St-Onge A (2012) Whether and how virtual try-on influences consumer responses to an apparel web site. Int J Electron Commer 16(3):41–64

    Article  Google Scholar 

  • Mossholder KW, Bennett N, Kemery ER, Wesolowski MA (1998) Relationships between bases of power and work reactions: the mediational role of procedural justice. J Manag 24:533–552

    Google Scholar 

  • Netemeyer RG, Krishnan B, Pullig C, Wang G, Yagci M, Dean D, Wirth F (2004) Developing and validating measures of facets of customer-based brand equity. J Bus Res 57(2):209–224

    Article  Google Scholar 

  • Neuhofer B, Buhalis D, Ladkin A (2015) Smart technologies for personalized experiences: a case study in the hospitality domain. Electron Mark 25(3):243–254

    Article  Google Scholar 

  • Nunnally JC (1978) Psychometric theory, 2nd edn. McGraw Hill, New York

    Google Scholar 

  • Pantano E, Naccarato G (2010) Entertainment in retailing: the influences of advanced technologies. J Retail Consum Serv 17(3):200–204

    Article  Google Scholar 

  • Pantano E, Servidio R (2012) Modeling innovative points of sales through virtual and immersive technologies. J Retail Consum Serv 19(3):279–286

    Article  Google Scholar 

  • Papagiannidis S, See-To E, Bourlakis M (2014) Virtual test-driving: the impact of simulated products on purchase intention. J Retail Consum Serv 21(5):877–887

    Article  Google Scholar 

  • Pihlström M, Brush GJ (2008) Comparing the perceived value of information and entertainment mobile services. Psychol Mark 25(8):732–755

    Article  Google Scholar 

  • Podsakoff PM, Organ DW (1986) Self-reports in organizational research: problems and prospects. J Manag 12:531–544

    Google Scholar 

  • Polo Peña AI, Frías Jamilena DM, Rodríguez Molina MÁ (2017) The effects of perceived value on loyalty: the moderating effect of market orientation adoption. Serv Bus 11(1):93–116

    Article  Google Scholar 

  • Poncin I, Ben Mimoun MS (2014) The impact of “e-atmospherics” on physical stores. J Retail Consum Serv 21(5):851–859

    Article  Google Scholar 

  • Rafaeli A, Altman D, Gremler DD, Grewal D, Iyer B, Parasuraman A, de Ruyter K (2017) Invited commentaries on the future of frontline research. J Serv Res 20(1):91–99

    Article  Google Scholar 

  • Rosa JA, Garbarino EC, Malter AJ (2006) Keeping the body in mind: the influence of body esteem and body boundary aberration on consumer beliefs and purchase intentions. J Consum Psychol 16(1):79–91

    Article  Google Scholar 

  • Scholz J, Smith AN (2016) Augmented reality: designing immersive experiences that maximize consumer engagement. Bus Horizons 59(2):149–161

    Article  Google Scholar 

  • Sherry JF (1990) A sociocultural analysis of a Midwestern American flea market. J Consum Res 17(1):13–30

    Article  Google Scholar 

  • Sullivan MG, Drennan J (2005) Marketing m-services: establishing a usage benefit typology related to mobile user characteristics. Database Mark Cust Strat Manag 12(4):327–341

    Article  Google Scholar 

  • Sweeney JC, Soutar GN (2001) Consumer perceived value: the development of a multiple item scale. J Retail 77(2):203–220

    Article  Google Scholar 

  • Tang A, Biocca F, Lim L (2004) Comparing differences in presence during social interaction in augmented reality versus virtual reality environments: an exploratory study. In: Proceedings of PRESENC, pp 204–208

  • Tang F, Wang X, Norman CS (2013) An investigation of the impact of media capabilities and extraversion on social presence and user satisfaction. Behav Inf Technol 32(10):1060–1073

    Article  Google Scholar 

  • Tzeng JY (2011) Perceived values and prospective users’ acceptance of prospective technology: the case of a career eportfolio system. Comput Educ 56(1):157–165

    Article  Google Scholar 

  • Wang HY, Liao C, Yang LH (2013) What affects mobile application use? The roles of consumption values. Int J Mark Stud 5(2):11–22

    Google Scholar 

  • Williams LJ, Cote JA, Buckley MR (1989) Lack of method variance in self-reported affect and perceptions at work: reality or artifact? J Appl Psychol 74(3):462–468

    Article  Google Scholar 

  • Witmer BG, Jerome CJ, Singer MJ (2005) The factor structure of the presence questionnaire. Presence 14(3):298–312

    Article  Google Scholar 

  • Wu PT, Lee CJ (2015) Impulse buying behaviour in cosmetics marketing activities. Total Qual Manag Bus Excell 27(9/10):1091–1111

    Google Scholar 

  • Wu HK, Lee SWY, Chang HY, Liang JC (2013) Current status, opportunities and challenges of augmented reality in education. Comput Educ 62:41–49

    Article  Google Scholar 

  • Yang HL, Lin CL (2014) Why do people stick to Facebook web site? A value theory-based view. Inf Technol People 27(1):21–37

    Article  Google Scholar 

Download references

Acknowledgements

The authors would like to thank the Ministry of Science and Technology of the Republic of China, Taiwan, for financially supporting this research under Contract No. MOST 106-2410-H-155-010-MY2 and MOST 105-2410-H-155-032-.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Tseng-Lung Huang.

Appendix

Appendix

See Table 5.

Table 5 Measurement scales

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Huang, TL. Creating a commercially compelling smart service encounter. Serv Bus 12, 357–377 (2018). https://doi.org/10.1007/s11628-017-0351-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11628-017-0351-8

Keywords

Navigation