In this study I investigate a novel approach on designing the electronic service environment in the context of complex services, such as insurance. However, such phenomenon has not (at least not yet) appeared in the insurance business context. Hence, the attributes concretely illustrating the novel approach on designing electronic insurance service environment had to be constructed through a comprehensive study, which includes both extensive scanning of the prior literature and empirical observations on the field of electronic insurance services.
Moreover, since the focus of this study is on constructing and developing “something new”
(i.e. the artifact), which does not exist in reality yet, design research approach was, therefore, found feasible to be followed.
Following abductive logic by going back and forth between earlier theoretical discus-sion and empirical research, and on the other hand, adding design science approach by
reflecting a concrete development work of electronic insurance service concept through a research and development project entity called “eInsurance” provide a favorable method-ological basis for the study. More precisely, abductive logic allows creative combining of earlier theories and empirical observations.
Concerning the design science approach, it does not only describe the methodological choices made for conducting the (empirical) research. By this I am referring to data col-lection and data analysis methods, which are typically, or at least very often, discussed in academic dissertations on management and marketing. Instead, I am considering design science approach as a holistic framework for the study. In my opinion, the design research framework by Vaishnavi and Kuecher (2004) well encapsulates and also gives a structure for the study as a whole as well as provides guidelines for conducting the different phases of the research work introduced in this report.
Hence, the methodological framework for the study is constructed by combining the design science approach with abductive logic as is depicted in Figure 4. Moreover, the con-structed framework creates a fundamental structure to the entire study as is also indicated in Figure 4.
After introduction and the discussion on methodological approach presented in this chapter, I move on to discussing insurance as a service (chapter 3.1), and principles of ser-vice design (chapter 3.2) by referring to the extant literature on serser-vices and serser-vice man-agement in chapter 3. As Figure 4 indicates I enter into the methodological framework of the study in chapter 3, and shall follow it throughout the study.
In the first phase of design research framework (awareness of problem) essential theo-retical constructs and prior theotheo-retical discussion in general are identified from service research point of view in order to be able to outline the preliminary field of research in which the study is theoretically positioned. In this regard, services, especially complex ser-vices, are the main focus of theoretical discussion. Thus, they form a fundamental concep-tual basis for the study.
In the second phase of the design research process (suggestion) the development ideas to be examined and evaluated are employed by applying the earlier conceptual and theo-retical discussion as well as empirical observations. In chapter 4 the theotheo-retical discussion moves on to the electronic environment, especially to the field of information systems (IS) research. From the service point of view, general characteristics of electronic services are discussed, and based on that, the essential nature of electronic insurance services charac-terized (chapter 4.1).
Further, earlier literature on Web site usability is explored in chapter 4.2. On the ba-sis of the earlier literature, two pilot studies on usability of electronic insurance services were conducted and they are discussed in chapters 4.3.1 and 4.3.2. The gained results of the pilot studies were applied, and on that basis, a “traditional versus novel typology” on
Prior Theories
5 Artefact for designing a customer-friendly elec-tronic servicescape
Conducting focus
group interwies Evaluation 6 Logic for evaluating the
developed artefact
FIGURE 4. METHODOLOGICAL FRAMEWORK AND THE STRUCTURE OF THE STUDY
designing electronic insurance service environment is introduced in chapter 4.4. On the basis of presented theoretical discussion complemented with empirical observations, the chapter is concluded by introducing a preliminary framework for characterizing electronic insurance servicescape suggested (chapter 4.5).
However, depicting the structure of the electronic servicescape is only one part of de-signing the electronic service environment in the scope of this study. In this regard, the suggestion phase of the design research process is continued also in chapter 5, but it is merged with the third phase (development). Chapter 5 introduces a view on customer-friendliness in designing electronic insurance service environment.
From service point of view, discussion on service experiences in chapter 5.1 provides a feasible approach to be employed in this study. From the perspective of IS research, tech-nology acceptance approach, as well as techtech-nology-readiness (TR) approach, which reflect customers’ intentions and attitudes to use electronic services, are suggested to being asso-ciated with service experience approach in indicating the creation of appealing electronic insurance service experiences (chapter 5.2). Customer-friendliness is also approached from empirical point of view in chapter 5.3 in which an electronic insurance service concept for consumers called “insurance cover evaluator” is introduced. The overall theoretical dis-cussion complemented with empirical observations is encapsulated in chapter 5.4 when preliminary framework (i.e. the developed artifact) for designing a customer-friendly elec-tronic insurance servicescape is introduced. In this context, the empirical observations refer to “traditional versus novel typology” discussed in chapter 4.4 and the “insurance cover evaluator” service concept (chapter 5.3).
After introducing the ‘artefact’ it had to be evaluated. In the fourth phase of the design research process (evaluation) methods and procedures for collecting and analyzing the evaluation data are discussed (chapter 6). Since I was dealing with a non-existing phe-nomenon, which had to be communicated to the research (i.e. evaluation) participants by describing, illustrating, and to some extent, explaining the essential nature of it, qualita-tive methods were preferred in this study in collecting the empirical data. More precisely, interview technique was found an appropriate method for data collection. However, since insurance matters are perceived as complex and even confusing by customers, and the investigated phenomenon (the developed artefact) was also more or less abstract, focus group interview technique was perceived as being more effective method for collecting empirical data on the developed artefact than individual interviews.
Next, the essential evaluation results (i.e. empirical research results) are presented and discussed in chapters 7 and 8. These chapters refer to the final phase of the design research process, which is determined as conclusion. However, “conclusion” in this context does not mean that the entire study is concluded. Instead, the discussion on the essential empirical research results is completed, and in that sense, concluded. As a result a structure of
elec-tronic servicescape is depicted in chapter 7.4. Further, the characteristics for creating ap-pealing electronic service experiences are proposed in chapters 8.1 and 8.2. Integrating the gained results, a theoretical model for designing a customer-friendly electronic insurance servicescape is introduced in chapter 8.3. The discussion on empirical results is concluded by providing guidelines for applying the research results in practice (chapter 8.4).
Finally, the entire research is concluded in chapter 9 by discussing the implications of the study. By this I am referring to theoretical (chapter 9.2), methodological (chapter 9.3), as well as practical (chapter 9.4) implications. In fact, suggesting practical implications is one essential part of design science approach emphasizing the relevance approach of aca-demic research (e.g. March and Smith 1995; van Aken 2005; Arnott 2006). In addition, the quality of the study is assessed from the perspectives of its execution and results gained in chapter 9.1. The study is ended with insights into future research directions in chapter 9.5.
3 SERVICE DESIGN IN COMPLEX SERVICE SETTINGS
Services. Electronic services. Complex services. Insurance services.Service design. Electron-ic servElectron-ice environment. ServElectron-ice experiences. These concepts can be considered as the key words of this academic dissertation. As noticeable (and also highlighted with italics), term
“service” is involved in all the keywords. In the forepart of this report (chapters 3, 4, and 5) the essential discussion on prior literature and theories referring to services to some extent is presented.
The essential objective of this chapter is to introduce the essential elements of this study from the service design point of view. For the sake of clarity the objective of this chapter is highlighted with help of the methodological framework introduced in chapter 2.3 (Figure 5). The same logic is followed also in other chapters throughout the study.
First, the essential nature of insurance as a service is discussed in chapter 3.1. However, in the beginning I consider it particularly relevant to shortly characterize the conceptual nature of service in general. It gives a basis for the further discussion on the scope of this study from the service point of view. Therefore, the chapter starts with a short general review on service characteristics (chapter 3.1.1). In order to approach the essential focus of the study, a discussion on complex services is presented in chapter 3.1.2, followed by a discussion on the general characteristics of insurance as a service in chapter 3.1.3.
The second essential part of this chapter is related to service design that is generally dis-cussed in chapter 3.2.1. Different approaches on service design are introduced in chapter 3.2.2. A special attention is paid to service facility design since it is of a particular interest in this study. Thus, the essentials of service facility design (e.g. discussion on servicescape) are discussed in chapter 3.2.3.
Prior Theories
5 Artefact for designing a customer-friendly elec-tronic servicescape
Conducting focus
group interwies Evaluation 6 Logic for evaluating the
developed artefact