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Abstract
Retailers are adopting self-service technologies (SSTs) to improve the quality of service. Self-service technologies indicate any technological application, but the most typical SST is interactive kiosks which refer to computer workstations for public access. Kiosks have widely been used for banking (ATM) and airline checkins.
Now kiosks are shown in diverse retail sectors, including food service, supermarkets, department stores, specialty stores, drug stores, bookstores, and entertainment. The range of service varies depending on retailers' goal.
However, the retail application is not always positively received. Thus it is vitally important that retailers understand the inherent problems and strategic issues of kiosks as a SST.
Successful kiosks can deliver financial returns to the company and also impact consumer satisfaction and retention.
Keywords: Retail; Retail Kiosks; Self-Service Retailing; Impact of Retail Kiosks on Consumer Satisfaction; Channel Structure; Innovation in Marketing Channels; Retail Technological Innovation; Global Competition; Global Markets
1. Self-Service Retailing and Competition
As customer service is an essential factor in the current market place, retailers are adopting self-service technologies (SSTs) to improve the quality of service. Technological interfaces enable companies to delight their customers instantly by allowing them to solve their problems using technology (Bitner et al., 2002). Selfservice technologies indicate any technological application, but the most typical SST is interactive kiosks which refer to computer workstations for public access (Rowley and Slack, 2003). Kiosks have widely been used for banking (ATM) and airline check-ins. Another popular use is for hotel service such as automated checkin and check-out facilities, automated room service ordering systems, automated message services and automated housekeeping services. Now kiosks are shown in diverse retail sectors, including food service, supermarkets, department stores, specialty stores, drug stores, bookstores, and entertainment. An example of retail kiosks is a self scanning device and a self check-out system in a supermarket. The range of service varies depending on retailers' goal. While some kiosks are used simply to check the price, other kiosks can be designed to deliver products and/or store information and transaction services. Other retail usages are for management (e.g., recruitment of employees) and educational applications (e.g., Colgate provides educational videos for dental hygiene through kiosks in retail stores).
Kiosks can bring a competitive advantage to retailers (Tung and Tan, 1998). However, the retail application...