Stefanie Paluch

Remote Service Technology Perception and its Impact on Customer-Provider Relationships GABLER RESEARCH

Applied Marketing Science / Angewandte Marketingforschung Editorial Board: Prof. Dr. Dieter Ahlert, Universität Münster Jun.-Prof. Dr. Markus Blut, Technische Universität Dortmund Jun.-Prof. Dr. Christian Brock, Zeppelin University Prof. Dr. Andreas Eggert, Universität Paderborn Prof. Dr. Heiner Evanschitzky, Aston Business School Birmingham/UK Dr. Josef , Schäper Sportgerätebau GmbH Prof. Dr. Hartmut H. Holzmüller, Technische Universität Dortmund Prof. Dr. Gopalkrishnan R. Iyer, Florida Atlantic University/USA Prof. Dr. Gustavo Möller-Hergt, Technische Universität Prof. Dr. Lou Pelton, University of North Texas/USA Prof. Dr. Arun Sharma, University of Miami/USA Prof. Dr. Florian von Wangenheim, Technische Universität München Prof. Dr. David Woisetschläger, Technische Universität Dortmund

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With a foreword by Prof. Dr. Hartmut H. Holzmüller

RESEARCH Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografi e; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.

Doctoral Thesis, TU Dortmund University, 2011

1st Edition 2011

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ISBN 978-3-8349-3100-9 Foreward V

Foreword

Academic research in the field of service and technology marketing has develo­ ped very turbulently over the last 30 years. Discussion of the marketing of tech­ nology-based service offerings is relatively new in the service marketing field. Remote services represent a young, but al ready important and fast growing form of service provision, especially in 11; mechanical engineering and medical technology. Businesses value the cost and flexibility benefits compared to tradi­ tional service provision via field staff. On the downside, the personal contact bet­ ween the customer and the provider is reduced, which leads to a large number of potential problems.

With the increasing performance of the internet and other forms of long-dis­ tance data transfer, the significance of technology-mediated services, particu­ larly remote services has increased. The scientific debate on the management and marketing of remote services is just beginning. Initial investigations into mar­ keting aspects in the remote services context have been approached in a joint research project (ExFed - Export of Remote Services, 01 HQ 0553) funded by the German Federal Ministry of Education and Research (BMBF). The dissertation by Stefanie Paluch is a study which has arisen in connection with this research project and offers an important contribution to investigations into this type of service, wh ich is of considerable relevance to the German economy and the inter­ national scientific community.

The dissertation deals with the perception of remote services from a customer's perspective and with the influence of remote service technology on the relati­ onship between the customer and the provider. Stefanie Paluch has focused on proactive remote services as a new type of technology-mediated services. She has provided a definition and positioned proactive remote services in existing theoretical frameworks - consequently enriching the understanding of techno­ logy-intensive services.

In order to research these new kinds of phenomena, Ms Paluch has worked with different qualitative methods (online focus groups, qualitative in-depth inter­ views, observations and metaphor analyses) to analyze customer and provider perspectives with regard to handling remote services in the field of medical tech­ nology in the USA, Germany and Sweden. In processing the text material, she uses VI Foreword

new and promising qualitative analysis methods. Ms Paluch applies the GABEK method and provides an extensive introduction to this innovative method.

Ms Paluch achieves interesting results from her empirical field work. With the extensive model of customers' remote service experience, significant factars are iIIustrated which influence the customers' perception of re mate service techno logies. Remote service technology, workflow, economic value, interaction, infor­ mation, individualization, auxiliary services and customer characteristics are identified as main influence factars in the perception of re mate service techno­ logies. With her dissertation Ms Paluch furtherrnare addresses a new topic in the field of technology-mediated services: her work investigates the influence of remote service technologies on the relationship between customer and provider and generates a deep understanding for change processes which result from the marketing of re mate services instead of personally provided services.

Stefanie Paluch also impressively succeeds in coupling her empirical results back to existing theoretical knowledge and in deriving research propositions relevant for the understanding of new types of technology-intensive services and their impact on customer-provider relationships. Ms Paluch succeeds in making a sig­ nificant contribution to current service and technology research and provides an excellent basis for continued investigation into this to pie. Besides the scientific relevance of the results, their consequences for the planning and design of mar­ keting activities for remote services in the field of industrial products are also of importance. Ms Paluch compiles numerous practical recommendations and implications for a successful implementation of remote service technologies and customer relationship management in the technological environment.

This work is highly up-to-date and significant and provides an important contribu­ tion to research into service technologies. It enhances the understanding of exis­ ting theoretical concepts of re mate services. I wish great market success for this dissertation and highly recommend the work to academics and practitioners who cancern themselves with the management and marketing of innovative, techno­ logy-based services.

July2011 Professor Dr. Hortmut H. Holzmüller Acknowledgements VII

Acknowledgements

First and foremost, I would like to express my gratitude to my dissertation advisor, Professor Dr. Hartrnut H. Holzmüller, who provided me the intriguing and innova­ tive research topic about remote services wh ich opened the door to science and the scientific community. As weil as taking on the academic supervision of my dis­ sertation project and enriching its development through critical and inspiring dis­ cussion, he also promoted me in my academic, professional and personal deve­ lopment. I wish to take this opportunity to mention his generous support which enabled me to participate in international conferences, doctoral colloquiums and seminars at the Harvard Business School. I would also like to give special thanks for the great freedom and trust which he granted to me during my dissertation.

Further thanks go to Professor Dr. Florian von Wangenheim from the Technical University Munich for his immediate and straightforward willingness to become my second advisor.

My thanks also go out to my third assessor and academic mentor, JProfessor Dr. Markus Blut, who did not only contribute to this work by his openness to dis­ cussion, valuable suggestions and his advice - he also motivated me to work on future interesting projects and publications and build up an international net­ work by way of many joint conference contributions. I will also never forget the two fascinating journeys as guest lecturers to Minsk in Belarus.

I would like to give great thanks to Dr. Michael Wagner for his commitment and willingness to support me in my and for giving me the opportunity to write my dissertation in cooperation with an international company. I thank hirn for his interest and work in writing joint book and conference contributions and for the deep insights into the practical handling of remote services. I especially thank hirn for his support in the empirical phase; his international contacts con­ tributed considerably to the success of my dissertation.

Great thanks go to my colleagues at the Department of Marketing at TU Dort­ mund University. I would especially like to thank my former and current office colleagues Bianca Welscher, Alexander Eiting and Jasmin Ulrich for countless pro­ fessional and personal conversations which brightened up everyday working life. VIII Acknowledgements

I will always remember the fascinating excursion to Belgium and the cocktail bar evenings wh ich have already become a fine tradition. Thanks also go to my cur­ rent colleagues Ulya Haenraets, Debra Hanning, Julia Ingwald, Maike Jockisch, Christian Martin, Sören Köcher, Vanessa Haselhoff, Alke Töllner, Christian Samu­ lewicz and Nicole Ahl-Selbstaedt for the wonderful time full of variety at the De­ partment, the many events enjoyed together and the spontaneously organized meetings in the 776. I would like to thank the "Powerhiwis" at the Department of Marketing who always had to carry the responsibility for me in the library.

In a personal respect, I thank my dear friends Dorothee Bornfelder, Stefanie Kn­ ops, Lars Ophüls, Tim Werten bruch, Caroline Selders and Stefan Latuski, who con­ stantly built up my confidence and catered for the necessary variety, visits to the theater and raclette evenings.

Probably the most important support came from my personal surroundings. My greatest thanks therefore go to my family. I am eternally grateful to my parents, Erika and Horst Paluch, my brother Heiko and his partner Claudia for their stead­ fast support and unfailing encouragement du ring the doctorate. Without them this dissertation would not have been possible. My deepest thanks and gratitude go to my partner, Professor Dr. Thomas Wittkop, whose belief in me and my abi­ lities motivated me throughout the whole period to keep my focus on my ambi­ tious goals. I greatly appreciate his knowledgeable and moral support - especially during the data collection in the USA - the interviews in New York, Baltimore, Wa­ shington, Houston and Las Vegas will remain with me as fond memo ries. I thank him for the shared love of travel and the great and unforgettable memories of conference/road trips to San Diego, Portland, Rio de Janeiro and Miami. I am deeply grateful to him for the spontaneous, supportive and insightful Gabek ana­ Iyzes workshop and the numerous lively discussions about qualitative research methods. His endless love has given me enormous strength and motivation and significantly contributed to the success of my doctorate. I dedicate this book to Thomas and my family with all my heart.

July2011 Stefanie Paluch Table of Contents IX

Table of Contents

1 INTRODUCTION ...... 1

1.1 Motivation ...... 1

1.2 Research Questions ...... 4

1.3 Structure of the Thesis ...... 5

2 CONCEPTUAL FOUNDATION OF REMOTE SERVICES ...... 8

2.1 Introduction into technology-mediated Services ...... 8

2.2 Definition and Positioning of Remote Services ...... 14

2.3 Remote Services in the Service Context ...... 21

2.3.1 Intangibility...... 21

2.3.2 Perishability ...... 21

2.3.3 Simultaneity of Production and Consumption ...... 22

2.3.4 Integration ofthe External Factor ...... 23

2.3.5 Heterogeneity ...... 23

2.4 Benefits and Challenges of Remote Services ...... 24

2.5 Studies on Remote Services ...... 29

2.6 Conclusion and Implications ...... 32

3 THEORETICAL FRAMEWORK ...... 34

3.1 Theoretical Foundation of the Service Encounter ...... 34

3.1.1 The Service Encounter ...... 34

3.1.2 Service Quality in the Service Encounter ...... 37

3.1.2.1 Service Quality in the B2C Service Encounter ...... 37

3.1.2.2 Service Quality in the B2B Service Encounter ...... 39 X Table of Contents

3.1.2.3 Conclusion ...... 47

3.1.3 The Employee in the Service Encounter ...... 47

3.1.3.1 Studies on Employee Behavior ...... 48

3.1.3.2 The Employee in the B2B Service Encounter ...... 56

3.1.3.3 Conclusion ...... 57

3.1.4 The Service Customer in the Service Encounter ...... 58

3.1.4.1 Customer Roles in the Service Encounter ...... 58

3.1.4.2 Motives of Customer Integration ...... 68

3.1.4.3 Conclusion ...... 70

3.2 Technology in the Service Encounter ...... 70

3.2.1 Changing Nature of Service Encounters ...... 71 3.2.2 (Dis-) Advantages ofTechnology in the Service Encounter ...... 72

3.2.3 Service Technology Research ...... 74

3.2.3.1 Customer Readiness ...... 80

3.2.3.2 Technology Readiness ...... 82

3.2.3.3 Technology in the B2B Encounter ...... 83

3.2.4 Conclusion ...... 85 3.3 Interaction and Customer Relations in the technology-based Service Encounter ...... 85

3.3.1 The Pyramid Model ...... 85 3.3.2 Technology-based Customer Contact ...... 87

3.3.3 Employees in the Technology-based Customer Contact ...... 92

3.3.4 Relationships and the Technology-based Service Encounter ...... 94

3.3.5 Conclusion ...... 98

3.4 Theoretical Foundation ofTechnology Adoption ...... 98

3.4.1 Innovation Diffusion Theory (lOT) ...... 98 Table of Contents XI

3.4.2 Theory of Reasoned Action (TRA) ...... 100

3.4.3 Theory of Planned Behavior (TPB) ...... 102

3.4.4 Technology Acceptance Model (TAM) ...... 103

3.4.5 The Unified Theory of Acceptance and Use of Technology (UTAUT) ...... 104 3.4.6 Interactive Technology-Mediated Service Usage Model (ITSUM)106

3.4.7 Conclusion ...... 109

4 RESEARCH DESIGN ...... 110

4.1 Qualitative Research ...... 110

4.1.1 Qualitative Research in the Context of Remote Service Technology ...... 110

4.1.2 Conclusion ...... 114

4.2 Empirical Phase ...... 114

4.2.1 Online Focus Groups as a Pilot Study ...... 116

4.2.2 Qualitative Interviews ...... 123

4.2.2.1 Interview Guide ...... 125 4.2.2.2 Sampling ...... 127

4.2.2.3 Conduction of Personal Interviews and Observations .. 130

4.2.3 Conclusion ...... 134 4.3 Data Analysis ...... 135

4.3.1 The Method GABEK!WinRelan ...... 136 4.3.2 Process ...... 139

4.3.2.1 Text Units ...... 139

4.3.2.2 Criterion Coding ...... 140

4.3.2.3 Keyword coding ...... 141

4.3.2.4 Evaluation Coding ...... 142 XII Table of Contents

4.3.2.5 Causal Coding ...... 146 4.3.2.6 Actual- and Target Coding ...... 149

4.4 Metaphors ...... 150

5 RESULTS OF THE EMPIRICAL STUDy ...... 154

5.1 Remote Service Evaluation ...... 154 5.2 Remote Service Perception ...... 157 5.2.1 Remote Service Technology ...... 159 5.2.1.1 Remote Service Features ...... 159 5.2.1.2 Complexity ...... 163 5.2.1.3 Reliability ...... 166 5.2.1.4 Availability ...... 167 5.2.1.5 Security and Risk ...... 169 5.2.1.6 Access ...... 171 5.2.1.7 Service Center ...... 174 5.2.1.8 Field Service Engineer ...... 177 5.2.1.9 Conclusion ...... 185 5.2.2 Remote Service Workflow ...... 191 5.2.2.1 Theoretical Concept ...... 192 5.2.2.2 Workflow ...... 193 5.2.2.3 Follow-up ...... 198

5.2.2.4 Preparation ...... 142 5.2.2.5 Customers Workflow ...... 201 5.2.2.6 Conclusion ...... 204 5.2.3 Information ...... 205 5.2.3.1 Transparency ...... 206 Tilble of Contents XIII

5.2.3.2 Evidence of service ...... 207 5.2.3.3 Notification ...... 210 5.2.3.4 Documentation ...... 214 5.2.3.5 Conclusion ...... 221 5.2.4 Economic Value ...... 222 5.2.4.1 Economic point of view ...... 223 5.2.4.2 Time ...... 225 5.2.4.3 Service Contract ...... 230 5.2.4.4 Costs and Price ...... 233 5.2.4.5 Quality and value Evaluation ...... 239 5.2.4.6 Conclusion ...... 244 5.2.5 Interaction ...... 245 5.2.5.1 Communication ...... 246 5.2.5.2 Personal Contact ...... 252 5.2.5.3 Human Factor ...... 258 5.2.5.4 Involvement ...... 264 5.2.5.5 Co-production and Control...... 264 5.2.5.6 Conclusion ...... 271 5.2.6 Individualization ...... 273 5.2.6.1 Individual treatment ...... 274 5.2.6.2 Matrix of UrgencyjPriority ...... 279 5.2.6.3 Customer-Specific Experience and Knowledge ...... 283 5.2.6.4 Conclusion ...... 285 5.2.7 Auxlliary Services ...... 286 5.2.7.1 Training ...... 287 5.2.7.2 Learning ...... 289 XIV Table of Contents

5.2.7.3 Improvement/Perspective ...... 292 5.2.7.4 Conclusion ...... 295 5.2.8 Remote Service Customer Characteristics ...... 297

5.2.8.1 Age ...... 297 5.2.8.2 Qualification and competence ...... 298 5.2.8.3 Role and Function ...... 300 5.2.9 Conclusion ...... 301 5.3 Remote Service and Relationships ...... 308 5.3.1 Perception of Relationship ...... 309 5.3.2 Remote Service Technology ...... 320 5.3.3 Technology Contact ...... 325 5.3.4 Interaction ...... 330 5.3.5 Conclusion ...... 339

6 CONCLUSION ...... 341 6.1 Summary ...... 341 6.2 Theoreticallmplications ...... 346 6.3 Manageriallmplications ...... 349 6.4 Methodological Reflexion und Future Research ...... 363

7 REFERENCES ...... 370 List of Figures XV

List of Figures

Figure 1 Structure ofthe Study ...... 7

Figure 2 Application of Tele-Services ...... 11

Figure 3 Remote Service Blueprint ...... 17

Figure 4 Proactive Remote Service Blueprint ...... 19

Figure 5 Technology Service Interaction Matrix ...... 20

Figure 6 Factors Influencing Remote Service Perception ...... 30

Figure 7 Customer Adoption oftechnology-enabled Services ...... 80

Figure 8 Consumer Trial and Consumer Readiness ...... 81

Figure 9 Pyramid Model ...... 74

Figure 10 Conceptual Archetypes of Customer Contact in Relation to Technology...... 88

Figure 11 Belief-Attitude-Intention ModeL ...... 90

Figure 12 Customer Technology Contact ...... 91

Figure 13 Employee Characteristics ...... 93

Figure 14 A Model of Five Stages in the Innovation Decision Process ...... 98

Figure 15 The Theory of Reasoned Action ...... 101

Figure 16 The Theory of Planned Behavior ...... 102

Figure 17 The Technology Acceptance Model ...... 103 XVI Ust of Filures

Figure 18 Unlfied Theory of Acceptance and Use of Technology ...... 105

Figure 19 Interactive Technology-Mediated Service Usage Model ...... 107

Figure 20 Research Process ...... 115

Figure 21 Qualitative Research Process with GABEK ...... 138

Figure 22 Index Card in GABEK ...... 140

Figure 23 Keyword List ...... •••...... 142

Figure 24 Statistic In GABEK ...... 143

Figure 25 Evaluation List in GABEK ...... 144

Figure 26 Positive Evaluations ...... 145

Figure 27 Negative Evaluations ...... 146

Figure 28 Relevancy Analysis ...... 147

Figure 29 Causal Network Remote Service ...... 148

Figure 30 Reduced Causal Network Remote Service ...... 149

Figure 31 Remote Service Evaluation 5tatistics ...... 156

Figure 32 Remote Service Perception Framework ...... 158

Figure 33 Remote Service Technoiogy ...... 159

Figure 34 Remote Service Workfiow ...... 191

Figure 35 Information ...... 206

Figure 36 Economic Value ...... 223

Figure 37 Interaction ...... 245 Ust of Figures XVII

Figure 38 Indlvidualization ...... 273

Figure 39 Auxiliary Services ...... 286

Figure 40 Customer Characteristic ...... 297

Figure 41 Customer Perception of Relationship ...... 308

Figure 42 Perception of Relationship ...... 309

Figure 43 Remote Technology ...... 320

Figure 44 Technology Contact ...... 325

Figure 45 Interaction ...... 330

Figure 46 Summary of Customers' holistic Remote Service Experience ...... 342

Figure 47 Managerial Implications ...... 350

Figure 48 Implications for RS Technology ...... 351

Figure 49 Implications for RS Workfiow ...... 353

Figure 50 Implications for Information Exchange ...... 354

Figure 51 Implications from Economical Perspective ...... 355

Figure 52 Implications for Interaction ...... 357

Figure 53 Implications for Auxiliary Services ...... 358

Figure 54 Implications for the Individual Treatment of Customers ...... 360 XVIII List of Figures

List of Tables

Table 1 Classification of Self-Service Technologies ...... 14

Table 2 Constitutive Service Characteristics ...... 24

Table 3 Benefits and Challenges of Remote Services ...... 28

Table 4 Service Quality Dimensions ...... 38

Table 5 Service Employee Characteristics ...... 51

Table 6 Customer Roles in the Service Encounter ...... 61

Table 7 Levels of Co-Production ...... 65

Table 8 Value Co-Creation (DART) ...... 67

Table 9 Technology Paradox ...... 74

Table 10 Aims of Focus Group Research ...... 117

Table 11 Focus Group Participants ...... 119

Table 12 Identified Categories from Focus Groups ...... 120

Table 13 Interview Partners ...... 130

Table 14 Remote Service Evaluation ...... 156

Table 15 Positive and Negative Top 15 Evaluation ...... 157

Table 16 Summary of Propositions about Remote Service Perception I ...... 304

Table 17 Summary of Propositions about Remote Service Perception 11 ••••• 306

Table 18 Summary of Customer Relationship Perception ...... 340

Table 19 7 Symptoms ofTruth ...... 363