Complex services, such as insurance, are more difficult for a customer to comprehend than, for example, getting a haircut. Further, electronic service environment brings its own additional challenges to the picture. For instance, in order to be able to use electronic services, customers are required certain pre-absorbed skills, such as ability to use a com-puter and the Internet. Regarding this, complex and confusing electronic service environ-ment makes the actual service (e.g. insurance) even more complicated. Hence, in order to get customers engaged in operating with electronic services, it is of utmost importance for service providers to pay attention to the customer-friendliness of the service environment design. By this I mean that customers’ insights are investigated and included in the design and development work of electronic insurance service environment.
From the scientific perspective this study generally refers to the service management discipline, in which service design is of a particular interest to the study. As Verma, Fitzsim-mons, Heineke, and Davis (2002) state as the editors of the special issues of Journal of Operations Management service design is an extensively examined field of service research in general. However, less attention is paid on investigating the design of service environment although it is suggested as a crucial element from the customers’ point of view (see e.g. Bitner 1992; Fitzsimmons and Fitzsimmons 1994; Fitzsimmons and Fitzsimmons 2006). In this
regard, Bitner (1992) has introduced “servicescape” to describe the determinants of physi-cal service environment.
Furthermore, earlier research on designing service environment reveals that when cus-tomers are observing and/or evaluating the content of a service they often might pay their main attention to observing and evaluating the physical facilities of a service provider in-stead of the actual service (Turley and Fugate 1992). Thus, it is justified to pay attention to investigating the design of service environment in general.
Concerning an electronic service environment, such as the Internet, physical facili-ties cannot be observed and/or evaluated in the same way since they do not exist. Prior literature on information systems (IS), especially within the field of Web site usability has focused on identifying the essential features mainly affecting the effectiveness and efficiency of information systems (also including Web environment) through quantitative measurement (e.g. Nielsen 2000; Henneman 1999). Sharing a similar approach, distinct determinants for quality of electronic services have been found within the service research context (e.g. Parasuraman, Zeithaml, and Matlhotra 2005, Heinonen 2006; Fassnacht and Koese 2006). However, less attention is paid to examining the overall electronic envi-ronment as an entity.
In this study a multidisciplinary approach is chosen by combining the service manage-ment approach and IS research approach. These two streams of research are integrated as an entity reflecting the managing of electronic services (Figure 1).
Service Management
Information Systems (IS) Research
Designing Electronic Service
Environment in Complex Service
Settings
MANAGING ELECTRONIC SERVICES
FIGURE 1. THE FOCUS OF THE STUDY Comp
lex Electronic
Services
As a starting point for this study it is suggested that since no “physical elements” (e.g. ser-vice personnel or other facilities) are available the “non-physical” elements that customers are observing and evaluating actually appear on the computer screen. This study suggests that the elements, which constitute the scene on the screen, are referring to usability-re-lated attributes, to some extent, but in this study the approach is employed according to the service perspective.
In this regard, the insights suggested by earlier studies on servicescape (e.g. Bitner 1990; 1992) indicating the determinants of physical service environment, and self-service technologies (SSTs) discussing the nature of electronic service devices and/or channels based on self-service logic (e.g. Meuter, Ostrom, Roundtree, and Bitner 2000; Bitner, Os-trom, and Meuter 2002) are applied. Referring to the work of Turley and Fugate (1992), the above mentioned usability-related elements adjusted to service approach represent a tangible although “non-physical evidence” of the existence of a service for the customers in the electronic service environment.
The main objective of this study is to conceptualize and model the design of a customer-friendly electronic service environment for complex services, such as insurance. The main research question of the study is:
How can a customer-friendly electronic servicescape be theoretically constructed in complex service settings, such as insurance?
In order to be able to provide an answer to the above presented question, the problem is approached by considering insurance services as an example of complex service. Thus, two sub-research questions are set for the study. These are:
1. How can a structure of electronic servicescape be modeled in insurance service con-text?
2. What kinds of appealing service experiences reflect electronic insurance servicescape from customers’ point of view?
In the study a managerial (“service designer’s”) perspective is taken. However, the empirical research conducted during the study focuses on investigating the insights of the customers (consumers) into the electronic services and electronic service environment. Therefore a concept customer-friendly is expressed in the main research question indicating the ori-entation of this study. After all, customers are the ones to whom the designed electronic services and electronic service environment are targeted. As “customer-friendly” is an ex-tensive concept, it is not even attempted to cover all the aspects of “customer-friendliness”
throughout this study. Instead, the study provides an approach to what “customer-friendli-ness” could mean in the context of complex electronic services, such as insurance.
In order to characterize the electronic service environment it is essential to identify and conceptualize the crucial dimensions of it. The first sub-research question pays at-tention to this issue. From the conceptual point of view servicescape refers to the model introduced by Mary Jo Bitner (1992) to describe the determinants of physical service en-vironment. In this study the concept and the model are refined and used as a guideline for depicting the structure of electronic insurance servicescape. This topic is especially discussed in chapters 3, 4, and 7.
However, modeling the structure of the electronic servicescape does not tell much about how appealing the customers perceive the electronic servicescape to be. Through the second sub-research question customer-friendliness approach is incorporated in the scope of the study by examining the characteristics indicating the creation of appealing elec-tronic insurance service experiences. Customer-friendliness approach is elaborated especial-ly in chapters 5, and 8.
After answering to the sub-research questions the results are integrated, and thereby, the main research question answered. In this regard, a theoretical model for designing a customer-friendly electronic insurance servicescape is constructed.