technology acceptance
Putting effort to designing the Web sites from usability point of view provides service providers with better possibilities to offer customers a comprehensive and comprehensible electronic service environment. However, it is only one side of the coin. Another side is customers’ abilities and willingness to use the electronic services. Even if the electronic ser-vice environment would be extremely functional, customers would not necessarily want to be served through the electronic channel. In that case, a firm’s designing work is a waste of money.
One of the most crucial challenges to all information systems is, and has been, to get users (i.e. customers) accept and exploit them. From service design point of view the above said refers to the ability of the electronic services and service environment to create appealing
service experiences to the customers. This is even more important in systems, such as Self-Service Technologies (SSTs), which are based on voluntariness and self-service logic since a service performance cannot be influenced by a physical service contact. The reasons could be many but some solutions for being able to affect on customers’ intentions to use new technology and/or electronic services are suggested through the research within the field of information systems (IS). In this regard Technology Acceptance Model (TAM), discussed in the following sections, is introduced. Further, Technology-Readiness model discussed within the field of service research is elaborated as well.
Technology Acceptance Model (TAM)
Technology Acceptance Model (TAM) originally introduced by Davis (1989) provides one insight into the question why users (i.e. customers) might be reluctant to use applica-tions based on information technology. TAM suggests two main features for explaining customers’ intentions to adopt new technologies, namely, perceived usefulness and perceived ease of use. Other researchers have later supported the validity of TAM as well as applied the model in various technology contexts (e.g. Adams, Nelson, and Todd 1992; Venkatesh 2000; Benbunan-Fich 2001; Chen and Tan 2004).
Perceived usefulness refers to the customers’ belief that “using a certain system would enhance their performance in order to get their job done and/or needs fulfilled” (Davis 1989, 320). However, it is not necessarily enough that the system is useful. If the custom-ers perceive the system as complicated and difficult to use they most likely hesitate, or in worst case, do not use it. The system has to be also easy to use. Perceived ease of use refers to the “situation where customers’ think that using the system is free of effort” (ibid.). Ac-cording to more recent research, perceived ease of use is seen to have direct influence on perceived usefulness (Venkatesh 2000, 343). Further, it is also confirmed that perceived usefulness is found to be a stronger determinant for customers’ intentions to use elec-tronic services than perceived ease of use (Venkatesh and Davis 2000, Venkatesh, Morris, Davis, and Davis 2003).
Along with the continuously increasing use of Internet, the World Wide Web (WWW) has become a very important environment for both service providers, and, naturally, cus-tomers (e.g. Nielsen 2000, 10). As an example of the increasing importance of the Internet and WWW, Moon and Kim (2001, 217) note that a change in the means people search information has already been observable. Therefore, investigating technology acceptance of people (i.e. potential customers) in the WWW context has been considered impor-tant.
In this regard, Moon and Kim (2001) have suggested a third feature, perceived playful-ness, to be added to TAM in WWW context. There is a common agreement that defining playfulness is somewhat complicated since the term is used in so many different contexts
(see e.g. Ellis 1973; Day 1981; Lin, Wu, and Tsai 2005). However, in their research con-text Moon and Kim (2001, 219) perceive playfulness as referring to concentration (e.g.
customer might forget the time, noises or other surrounding factors, or even what the work was that he was supposed to do), curiosity (e.g. customers might forget the actual purpose of use, and start exploration), and enjoyment (e.g. customer perceives it fun and entertaining to operate in WWW environment) related to the use of WWW. Through their research work Moon and Kim confirm playfulness to be valid and important feature for explaining technology acceptance of the customers in WWW environment. Further, they investigated the importance of perceived playfulness in both working and entertain-ment situations and reported that playfulness also has a significant effect on situations when WWW is used for working purposes (p. 227).
In order to apply TAM in the scope of this study, few remarks have to be made. First of all, it is assumed already beforehand that electronic insurance services should be designed to be useful. Otherwise no one bothers to operate with the electronic service environment based on self-service logic – not in the case of complex services. In addition, as far as I am concerned usefulness is more focused on measuring more engineering-based values, such as time, system effectiveness and efficiency, and productivity (Venkatesh et al. 2003, 448).
Therefore, usefulness determining customers’ intentions to use electronic insurance services is not of a particular interest in this study.
Second, research has evidenced that the significance of ease of use on customers’ in-tentions to use a certain technology becomes less important as customers become more experienced in using the technology (Venkatesh and Davis 2000, Venkatesh et al. 2003).
However, as the frequency of use in case of electronic insurance services is particularly low (maybe only once or a few times a year), I contend that in the electronic insurance service context perceived ease of use is utmost important in order to get customers to use the electronic services. In addition, perceived ease of use,is established to be particularly crucial feature in WWW environment (e.g. Moon and Kim 2001, 224; Lin, Wu, and Tsai 2005, 691).
And third, the work of Moon and Kim (2001) clearly indicates that playfulness is a cru-cial element in the context of designing electronic service environment in general. More-over, since insurance can be characterized by complexity, low levels of interest by custom-ers, abstract, and matter-of-fact nature, the fact that playfulness also has a crucial impact on customers’ intentions to use WWW for working purposes, justifies that playfulness is a crucial element to be considered in the context of this study.
Further, it is suggested that perceived ease of use and perceived playfulness are signifi-cantly related to each other in WWW environment (Moon and Kim 2001, 226). These findings clearly give theoretical support for the scope of this study. Thus, ease of use and playfulness are considered as crucial design elements affecting customers’ intentions to operate in the electronic (Internet-based) service environment.
Concerning the conceptual discussion on the characteristics of playfulness, enjoyment was proposed as one of its crucial determinants. Referring to this, Huang (2005, 841), following the earlier insights by Hoffman and Novak (1996), notes that searching infor-mation to solve (a) certain problem(s) is not customers’ only purpose to visit the different Web sites. They are also using the Internet for socializing, and looking for entertainment.
In this regard, De Wulf et al. (2006) have investigated the influence of pleasure on the Web site success. They propose that pleasure indicates such elements as fun and enjoyment of a certain Web site. De Wulf et al. (2006) define pleasure as “the extent a customer per-ceives the service performance to be enjoyable” (p. 436).
Referring to the above said, I suggest that playfulness and pleasure can actually be con-sidered as referring to the same phenomenon. As playfulness is a more complicated and multidimensional concept, and since it might be mixed up with phenomena more refer-ring to the game world (i.e. playing), pleasure is therefore preferred in this study to indicate the design of a customer-friendly electronic service environment to the extent that Web sites should be providing customers with experiences, which are also characterized by fun and enjoyment. However, playfulness as a construct is used in empirical research setting of the study to indicate the nature of “insurance cover evaluator” a service concept, which is introduced and discussed in chapter 5.3.
Technology readiness
Whereas TAM approaches customers’ intentions to use the electronic services from the perspective of the requisites for the service environment, in the service literature the issue has been approached from the customers’ attitudes point of view. Technology readiness (TR) model has been suggested to describe the drivers affecting customers’ attitudes towards the adoption of technological solutions (see e.g. Parasuraman 2000; Parasuraman and Colby 2001; Tsikriktsis 2004). In the model customers’ attitudes and beliefs towards the adapta-tion of technological soluadapta-tions (electronic services) are described through four drivers that comprise: optimism, innovativeness, insecurity, and discomfort (Figure 16).
The four dimensions indicating customers’ beliefs towards the use of electronic ser-vices reflect both positive (“contributors”) and negative (“inhibitors”) attitudes. Optimis-tic customers have strong faith in the possibilities of new technology to make their lives easier and more efficient. They have natural curiosity to learn how to use a new system despite the time they consume on getting themselves familiar with the system. Innovative-ness refers to customers who can be considered as self-learners. They like to update their knowledge on new technological solutions and they are keen to try new systems even if the actual functionality would be poor.
Insecurity is one of two dimensions indicating inhibiting beliefs towards the adoption of electronic services. Insecurity has been considered as the most remarkable barrier on the advancement of electronic services. It refers to, for example, delivering confidential infor-mation (e.g. credit card numbers or other personal inforinfor-mation) over the Internet, and the need for the assurance that the system is working as it is expected to work without failures. Another inhibitor is discomfort, which refers to customers’ anxiety that they are unable to use electronic services because a service environment might be difficult to use.
In that case, customers might feel embarrassed and incapable (Parasuraman and Colby 2001, 34–46; Colby 2002, 29–32).
Further, Colby and Parasuraman (2001) have proposed a framework for classifying customers according to their attitudes towards TR. The classification contains five cus-tomer categories which are: explorers, pioneers, skeptics, paranoids, and laggards. In order to provide a more comprehensive picture on the linkage between TR model and customer classifications discussed above, Parasuraman and Colby have assessed each customer type from the perspective of TR model. In evaluating the extent of each dimension of TR mod-el a very simple scale ranging from “low” to “high” is used. The evaluation is depicted in Table 4.
Contributors
Adoption Behavior
Inhibitors
Technology Readiness
Discomfort Insecurity Optimism
Innovativeness
FIGURE 16. TECHNOLOGYREADINESSMODEL (ADAPTED FROMCOLBY 2002, 30)
TABLE 4. DIFFERING BELIEFS OF TECHNOLOGY ADOPTION SEGMENTS (PARASURAMAN ANDCOLBY 2001, 60)
DRIVERS INHIBITORS
Optimism Innovativeness Discomfort Insecurity
Explorers High High Low Low
Pioneers High High High High
Skeptics Low Low Low Low
Paranoids High Low High High
Laggards Low Low High High
In the following five paragraphs each customer segment is individually characterized. The presented discussion is based on the original characterizations by Colby and Parasuraman (2001, 59–61).
Explorers are highly motivated to adapt new technology, and have both optimistic and innovative attitude towards the new technological solutions. They can be considered as self-learners in getting themselves familiar with new technologies. Explorers are often male and younger people.
Pioneers also have optimistic and innovative attitude towards electronic services but they also might feel some levels of insecurity and discomfort in trying new solutions. Unlike explorers, they might need help in adopting new technologies. Pioneers are often young and from their income level middle-class.
Skeptics lack optimistic insight into electronic services, and they need to be convinced about the advances of new technological solutions before they become active adapters.
Skeptics usually have average income level, they are already older than pioneers, and they are less likely to work in technology professions.
Paranoids feel high levels of insecurity and discomfort towards electronic services.
They are often lower-income,lower-education, and older people. However, this customer segment might still be willing to adopt new technology but only after careful reassurance and help in adoption.
Laggards are the least likely to become adapters of electronic services. They do not see, or do not want to see, the advantages of new technology, and are often the most brand loyal segment. Laggards are often the oldest,least educated, and have the lowest income.
While TR model described customers’ attitudes towards the use of new technology (e.g. electronic services), Bitner et al. (2002, 102–103) have suggested a consumer readiness (CR) model to describe the factors determining customers’ competencies to try and adopt self-service-based technologies, such as Internet-based electronic services. The model suggests that consumer readiness to adopt self-service technologies (SSTs) is determined through three features: ability, role clarity, and motivation.Ability refers to customers’ skills and
capabilities to use electronic services, and resources (i.e. the customers have the required equipments, such as a computer and Internet access, to be able to use the services). Role clarity means that customers know what they have to do in order to get their transactions completed in the electronic service environment. Motivation refers to the fact that the benefits of the electronic services should be so visible and clear that customers easily rec-ognize them, and thereby, become motivated to try and adapt the electronic services. Both TR and CR models are used to construct the empirical research setting for this study, and thus, discussed later in chapter 6.2.
To encapsulate the essential contribution of this sub-chapter to the overall service de-sign approach of the study, few remarks are essential to be noted. First, it can be stated that electronic servicescape describes the structural characteristics and the composition of the electronic service environment. However, ease of use and pleasure are considered as crucial determinants of customer-friendliness of the electronic insurance servicescape in the scope of the study.
Concerning the users (i.e. customers) of electronic service environment, the focus of this study is on customers who have a more positive than negative attitude towards new technol-ogy and electronic services provided on the Internet. Following the categorization of Colby and Parasuraman (1999) the main interest lies in the first four categories (explorers, pio-neers, skeptics and paranoids), since these customers segments can be considered to have the required motivation on using electronic services, and thereby, they are considered as potential customers for electronic service environment. Even though some of the custom-ers considered to belong to some of these four categories (especially in case of skeptics and paranoids) may have prejudices or even skeptical attitude towards electronic services they might still be potential customers for electronic services. However, it is not even of insur-ance companies’ interest to shift all their services to the Internet (or in general, electronic environment), and to get all the customers engaged in electronic service environment.
Therefore, only the above mentioned four customer segments that can be considered as po-tential customers in the electronic service environment, at least to some extent, are examined.
The customers that have the most negative attitude towards using electronic services (i.e.
laggards) are excluded from the scope of this study.