1 AIT Asian Institute of Technology

The impact of technology-based service encounters on customer loyalty

AuthorRapeeporn Srijumpa
Call NumberAIT Diss no.SM-02-06
Subject(s)Consumer satisfaction
Customer loyalty
NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy, School of Management
PublisherAsian Institute of Technology
Series StatementDissertation; no. SM-02-06
AbstractThe concept of an interpersonal service encounter has been extensively studied for decades. However, the concept of a technology-based service encounter, interaction without human participation by the service provider, has just begun receiving attention in the western context. Whether the impact on customer satisfaction and customer loyalty of implementing technology-based services would be the same as in interpersonal service encounters has not been examined much in the Asian context. Therefore, this study explored customer satisfaction with service encounters which are either technology-based or interpersonal, and looked at the impacts on customer loyalty. On the basis of the literature review and the explorat01y pilot work with typical customers of stock brokerage services, it was revealed that customer perceptions of technology has a direct impact on customer satisfaction with service encounters, particularly with technology-based service encounters. The survey results supp01ted the pilot work, showing that the more positive the attitudes of customers toward technology or the greater the readiness of customers to use technology, the more satisfaction they have with the technology-based service encounter. Respondents who have more technology readiness, Optimism and Innovativeness (Parasuraman's [2000) te1minology) tend to have higher satisfaction with technology-based encounters. Respondents who are technology leaders (Innovativeness) tend not only to have positive evaluations of technology-based service encounters, but also tend to have negative evaluations of interpersonal service encounters. In contrast, respondents who distrust the ability of technology (Insecurity) not only tend to have negative evaluations with technologybased service encounters, but also tend to be positive about interpersonal service ones. The empirical study also confomed that customer satisfaction with service encounters, both interpersonal and technology-based, have significant positive impact on customer loyalty. Fmthermore, the technology readiness of customers moderates the link between satisfaction with the service encounter and customer loyalty. The positive relationships between service encounter satisfaction and customer loyalty is significantly increased if customers are more ready to embrace technology, especially when innovative customers interact with the technology-based service encounter. On the other hand, insecurity concerning the concept of using technology tends to decrease the degree of the impact of technology-based service satisfaction on customer loyalty. However, it increases the impact of interpersonal service encounter satisfaction on customer loyalty.
Year2002
Corresponding Series Added EntryAsian Institute of Technology. Dissertation; no. SM-02-06
TypeDissertation
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Speece, Mark W.
Examination Committee(s)Paul, Himangshu;Bechter, Clemens;Teerapat Sanguankotchakorn;Patterson, Paul G.
Scholarship Donor(s)Sripatum University
DegreeThesis (Ph.D.) - Asian Institute of Technology, 2002


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