E‐services: operating strategy—a case study and a method for analyzing operational benefits

Abstract

The Internet’s influence in creating e‐services has been revolutionary for providers and their customers. Unfortunately, there has been a wide gap between inspiring applications of the Internet that help increase service customization while maintaining or even improving delivery efficiency, and downright flops in which companies that have made bold promises have failed to deliver on even a portion of their pledges. This paper provides an examination of e‐services utilizing three approaches in order to provide guidance on how to fly rather than flop. First, we develop a model of the e‐service customer retention. Second, we offer a case study of Sothebys.com to illustrate how a well‐known, but not typically technologically adventurous, company can utilize e‐services to expand its offerings and streamline its services. Finally, we offer a profiling technique for analyzing the benefits and challenges of e‐services for particular industries.

New measurement scales for evaluating perceptions of the technology‐mediated customer service experience

“…Service organizations are increasingly utilizing advanced information and communication technologies, such as the Internet, in hopes of improving the efficiency, cost-effectiveness, and/or quality of their customer-facing operations (Fitzsimmons and Fitzsimmons, 2004;Huete and Roth, 1988;Haynes and Thies, 1991;Hill et al, 2002;Oliveira et al, 2002;Roth, 2000;Boyer et al, 2002). More of the contact a customer has with the firm is likely to be with the back-office and mediated by technology (e.g., via telephone, instant messaging (IM), or email).…”

“…The advancement of communications and information technology is altering the ways that customers interface with service providers and, therefore, may influence customers' perceptions of the service experience (Boyer et al, 2002;Heim and Sinha, 2001b;Huete and Roth, 1988;Oliveira et al, 2002;Roth, 2000Roth, , 2001. This paper specifically focuses on a particular context that we call technology-mediated customer contact.…”

Offering Appropriate Information Technologies at Different Stages in the Customer Service Life Cycle for Improved Service Delivery

“…Just like risk, the burden of activity resides with the server. This is particularly important for "non-standard" transactions [35] such as configuring specialized, industrial electric motors. Because the configuration can significantly influence the reliability of the motor [42], it requires a knowledgeable individual.…”

“…For example, employees at General Electric (GE) use a system called Trading Partner Network Register to electronically order office supplies from pre-approved vendors because it saves them money [44], wait times are shorter, no paperwork needs to be filled out, and authorizations are done electronically [41,45]. In addition to these benefits, SSTs offer an interactive, convenient, consistent, and personal way of communi-cating with the seller [35,41,46]. While SSTs can provide immediate feedback and a personal focus, they do not offer the same number of cues (e.g.…”

“…First, they can reduce costs [47] by eliminating costly specialists and experts [35]. Second, they allow the organization to meet customer demand for alternative ways of purchasing services.…”