ABSTRACT Title of Document: ‘DO-IT-YOURSELF’: SELF-CHECKOUTS, SUPERMARKETS, AND THE SELF- SERVICE TREND IN AMERICAN BUSINESS Christopher K. Andrews, Doctor of Philosophy, 2009 Directed By: Professor Bart Landry, Sociology A significant portion of sociology has always taken as its central focus the underlying relationship between economy and society. This dissertation continues this tradition by examining how self-service and its ‘do-it-yourself’ ethos is changing the U.S. economy and the way in which Americans consume goods and services. Focusing upon the supermarket industry and the three principle stakeholder groups involved – employers, employees, and consumers – this dissertation examines why businesses are adopting automated checkout lanes. Particular attention is given to the reasons cited for their introduction, their effect upon work and employment in the industry, and the public’s perception and attitude towards the technology. This dissertation adopts a multi-method approach, using information collected from eighty face-to-face interviews with customers, employees, and store managers, as well as secondary data and nonparticipant observation. Secondary data sources include published economic indicators and employment statistics, as well as information provided by newspapers and retail industry publications; nonparticipant observation was used to collect field notes documenting staffing levels, customer behavior, and other related information. Precisely why self-checkouts are being introduced remains a much-debated issue. Interviews indicate that organized labor and consumers view them as primarily a cost- cutting mechanism, yet labor costs within the industry continue to rise and employment remains relatively stable. At present, a number of social and economic barriers currently limit the extent of their use in stores; these factors include theft, maintenance, perceptions of service, internal controls, and specific labor contract provisions. Results also suggest that external, rather than internal, market factors may be driving current employment trends, including competition in the low-wage labor market and the emergence of non- union competition into the retail food industry. The benefits offered to consumers remains unclear. A majority of customers surveyed still prefer conventional cashier lanes, yet self-checkout clearly appeals to some consumers due to the perceived speed, control, and independence. However, results indicate that under most circumstances self-checkouts are not faster than conventional methods of checkout due to differences in user skill and experience. This may change, however, as similar self-service technologies become increasingly common in the service industry. ‘DO-IT-YOURSELF’: SELF-CHECKOUTS, SUPERMARKETS, AND THE SELF- SERVICE TREND IN AMERICAN BUSINESS by Christopher K. Andrews Dissertation submitted to the Faculty of the Graduate School of the University of Maryland, College Park, in partial fulfillment of the requirements for the degree of Doctor of Philosophy 2009 Advisory Committee: Professor Bart Landry, Chair Professor Stanley Presser Associate Professor Joseph Lengermann Associate Professor Alan Neustadtl Professor Erve Chambers © Copyright by Christopher K. Andrews 2009 Dedication This dissertation is dedicated to my mother, Jane, who did a wonderful job raising three children while working several jobs. ii Acknowledgements First and foremost, I would like to thank the employees of SuperFood, without whom this research would not have been possible. I owe a special debt of gratitude to the individual store managers – Barry, Rick, Peter, Sam, Carl, and Michelle – who vouched for and provided me with access to their respective stores. I would also like to thank the SuperFood employees, many of whom graciously gave up their time during lunch breaks to answer questions and, in several cases, allowed me to observe them at the checkout lane while they worked. I would also like to thank my committee for helping shape and direct my interest into a more focused and defensible work. My advisor and dissertation chair, Bart Landry, spent countless hours reviewing drafts and chapters and provided moral encouragement throughout the process. I would also like to thank my individual committee members Stanley Presser, Joe Lengermann, Alan Neustadtl, and Erve Chambers, each of whom brought their individual expertise and knowledge to bear and had an active role in shaping the final product. While scheduling committee meetings is always a difficult task, I must give a special thanks to Stanley as well as to Dan Navarro at the Office of Academic Computing Services (OACS). Following the defense of my proposal, Stanley took up a position as a Fulbright Scholar in Shanghai, China. Yet, despite being thousands of miles away, Stanley was able to participate in my final dissertation defense meeting through videoconference, thanks in large part to Dan’s technical expertise (and Stanley’s willingness to stay up late, reflecting a time zone difference of approximately twelve hours). iii A large number of classmates gave comments and advice throughout the writing process; without naming all of them, I would like to single out for praise my officemates Andy Timleck, Craig Lair, Paul Dean, and Les Andrist. While arguably a captive audience, they often served as a sounding board for ideas and offered useful suggestions and advice. More generally, I would like to thank my classmates in the University of Maryland’s sociology graduate program, including (aside from the aforementioned) Megan Klein, Sara Raley, Melissa Scopilliti, Mike Danza, Elena Fazio, Kim Nguyen, Alex Bierman, Diana Elliott, Tony Hatch, and Betsy Thorn. The camaraderie and sense of community you helped to create provided an incalculable measure of moral support. In addition, I would like to thank the Works-in-Progress writing group as well as the Socy701 graduate seminar group, each of which provided constructive criticism on papers involving themes central to what later became the dissertation itself. Finally, I would like to thank my friends and family whose love and support sustained me throughout the project. This project spanned several years and required a great deal of time and energy. I must extend a special thanks to Carolyn and Brian Burns, who on several occasions invited me to stay with their family at their summer cottage; it provided a welcome change of scenery and much needed respite. I would also like to thank my family, especially Charlie, Katie, and my mother, for putting up with the pile of papers and grading that frequently accompanied me on holidays. Most of all, I owe a special debt of gratitude to Tracy Roberts, who had the patience and grace to put up with me throughout the entire process and continues to be a source of love and inspiration. iv Table of Contents Acknowledgements ............................................................................................................ iii List of Tables ..................................................................................................................... ix List of Figures ..................................................................................................................... x List of Figures ..................................................................................................................... x Appendices ......................................................................................................................... xi Appendices ......................................................................................................................... xi Chapter 1: Introduction ....................................................................................................... 1 The Rise of Self-Service ................................................................................................. 2 The Expansion of Self-Checkouts .................................................................................. 6 The Manufacturers .......................................................................................................... 9 Selling Self-Service to Businesses ................................................................................ 11 Employees Fear An Uncertain Future........................................................................... 12 The ‘Downward Restructuring’ of Work ...................................................................... 13 The Degradation of Service .......................................................................................... 14 Self-Checkouts and Labor Shortages ............................................................................ 15 Redeploying (vs. Replacing) Labor .............................................................................. 17 A Useful Illustration ................................................................................................. 18 Demands for Self-Service ............................................................................................. 19 Shorter Lines, Faster Shopping, Better Service ............................................................ 20 Mixed Reviews From Customers.................................................................................. 21 Summary ....................................................................................................................... 23 Chapter 2: Literature Review ...........................................................................................