International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
INTERNATIONAL JOURNAL OF MAN...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 5, September...
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  1. 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) Volume 4, Issue 5, September - October (2013) ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 4, Issue 5, September - October (2013), pp. 139-152 © IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2013): 6.9071 (Calculated by GISI) www.jifactor.com IJM ©IAEME CROSS CULTURAL STUDY OF CUSTOMER SATISFACTION WITH SELF SERVICE TECHNOLOGY IN RETAIL SETTINGS OF INDIA AND INDONESIA Deblina Saha Vashishta1* and Dr. B.Balaji2 1 Research Scholar, Bharathiar University and Faculty, Imperial College of Business Studies Bangalore-76 2 Research Supervisor,Bharathiar University and Director (MBA),Sree Sastha Institute of Engineering and Technology, Chennai-600123 ABSTRACT While the world’s largest developing markets like Brazil, Russia, India, China, Malaysia— still tempt the largest global retailers and show no signs of slowing down, many smaller, untapped markets are providing new profit frontiers, particularly for regional and specialty players. Undoubtedly India has also been one of the top favorite destinations for the foreign retailers and with the Government approving foreign direct investment in retail all the big retail giants like Wal-Mart, Tesco are eyeing the diverse culture of India that is going to offer them a huge opportunity. For Indonesia, attractive middle class, an expanding middle class, steadily growing economy (roughly 6 percent per year), and declining debt-to-GDP ratios are enticing the global retailers. Even though the share of organized retail is only 4% its total retail sales in 2012 had been USD 322 billion on the other hand Indonesia having 30% share of organized retail had total retail sales of USD 150 billion. Keeping up the pace with global retailing, technology is also gaining its share of importance in the organized retail sector as technology is transforming the way retailers operate in developing markets. But at the same time the question arises are Indians and Indonesians ready to shop smartly or they would still prefer to stand in long ques every weekends to pay their bills or redeem their membership cards? Since both the countries are backed by strong cultural dimensions like collectivism, masculinity and uncertainty avoidance, it is important to understand whether the consumers are really prepared to believe in their self efficacy and accept technology innovations to enhance their shopping experience or they still want to be dependent on the front line service employees. Considering the fact that these dimensions are very important in a globalised economy and potential adaptation of new technology based service models is crucial for successful market entry, this research paper attempts to find out how the consumers perception regarding acceptance of Self Service Technology is influenced by the cultural dimensions of both the nations. 139
  2. 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) Key Words: Cultural Dimensions, Customer Satisfaction, Retail Innovation, Self Service Technology. 1. INTRODUCTION Global retail is finally growing and living up to its name “global” as the largest developing markets continue to attract most leading retailers. With consumer confidence improving and purchasing power increasing global retailers continue to expand their hold in the developing markets. In the past five years, U.S.-based Wal-Mart, France-based Carrefour, U.K.-based Tesco, and Germany-based Metro Group saw their revenues in developing countries grow 2.5 times faster than revenues in their home markets. Shoppers' expectations and behaviours are evolving, driven by both the economic climate and increased access to information through technology. Consumers are more connected than ever to brands, merchandise, and their fellow shoppers. The proliferation of channels and media outlets for retailer-consumer interactions has forced retailers to approach international expansion from a multi-channel perspective. Even in developing markets, people are increasingly willing to purchase online. Growth in e-commerce and mobile commerce outpaces physical retail in nearly every market, demonstrating that the Internet is both a viable complement to bricks-andmortar operations and a pure-play channel for market entry. But Consumer behavior in market place cannot be considered as an independent activity but they are closely associated with cultural dimensions, values and social relationships. With the trend of globalization culture has become an indispensable part of marketplace. People of each country possess a distinct ‘‘national character’’ (Clark, 1990). Countries are a source of a considerable amount of common mental programming of their citizens (Hofstede, 1991). Core values of any country shape its national culture. As culture varies country to country, a close insight about country-specific culture and core values is almost essential for a smooth sailing in any country market. At the same time the globalised era is introducing the concept of self service technology into the retail settings which encourages consumers actively to co-produce the service independent of frontline service employees’ involvement (Meuter et al., 2000, 2005) and results in improvements to retailers’ productivity and service quality (Lee et al., 2009;Weijters et al., 2007). Despite the acceleration of its availability being beneficial to retail stores (Lee et al., 2009), the use of SST has met with limited success in retail settings (Dabholkar et al., 2003; Weijters et al., 2007). The primary cause of such disappointing results is the retailers’ lack of understanding regarding consumer’s perceptions associated with the usage of SST, such as satisfaction (Weijterset al., 2007). Consumer satisfaction is recognized as an adequate measure of service quality and which leads to the continuation of relationships with service providers (Rust and Chung, 2006) as well as dominating SST success (Chen et al., 2009). Latest technological innovations do add convenience and style to shopping experience but at the same time it is very essential to understand the consumer mindsets in depth that governs the success or failure of such innovations as the mindset is primarily driven by one’s culture and social values. 2. LITERATURE REVIEW 2.1 Role of Culture, Cultural Dimensions in Consumer Behaviour Hofstede (2001) refers to culture as ‘‘the collective programming of the mind which distinguishes the members of one group or category of people from another’’. Culture refers to a set of values, ideas, artifacts and other meaningful symbols that help individuals to communicate, interpret and evaluate as members of society. It is a normally homogeneous system of collectively shared meanings, way of life and common set of values shared by a member of society. Culture comprises the shared values, assumptions, understandings and goals that are learned from one generation, imposed by the current generation, and passed on to succeeding generations (Deresky, 140
  3. 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) 2003). It governs how we wish to be treated and how we treat others; how we communicate, negotiate process information and make decisions (Scarborough, 2000). Due to rapid globalization, though we are fast absorbing concept of ‘‘no-border’’ world, yet cultural factors moderate many aspects of consumer’s buying behaviour. There is a growing interest in cultural differences of countries and understanding the cultural context of consumer behaviour in a globalized marketplace (Maheswaran and Sharon, 2000). It is true that in the market place, consumer’s perception of an inexperienced new technology is based upon its abilities to satisfy needs on which culture and values have a great impact. Over the past decades, due to aggressive competition in the retail business environment, a company’s success largely depended on the satisfied customers who are willing to experiment with the latest innovation in the shopping experience (Siu and Cheung, 2001; Srinivasan et al., 2002). Researchers suggested that creating a positive retail store environment plays a critical role in satisfying customers and maintaining their loyalty to the store in foreign markets (Chang and Tu, 2005). Much research also showed that certain retail store attributes influence store choice and patronage behaviour (Baker et al., 2002; Hu and Jasper, 2006; Pan and Zinkham, 2006; Sherman et al., 1997; Sirgy et al., 2000). Zhang, Beatty, and Walsh (2008) reviewed twenty service research journals and discovered forty articles that focus on cross-cultural customer service research. The most popular categorization of cultural dimensions is the framework proposed by Hofstede (1980) which includes individualism versus collectivism, masculinity versus femininity, high power of distance versus low power of distance, and high uncertainty avoidance versus low uncertainty avoidance. Prior studies show that individualism and uncertainty avoidance are important to consumer acceptance of innovations in different cultures (Lim, Leung, Sia, & Lee, 2004). Individualism defines cultures where there are loose ties between individuals and there is a greater propensity for people to take care of themselves and their close family with low levels of concern for the rest of society. Collectivism defines cultures where people are integrated into cohesive groups and have strong loyalties to the group. People in individualistic cultures are encouraged to make their own choices whereas people in collective cultures are more willing to conform to the norms of the group (Erumban, & Jong, 2006). Members of individualist cultures feel free to express their own views and act accordingly and are therefore more willing to innovate and adopt new ideas (Erumban, & Jong, 2006). Further, an individualistic culture, where people tend to follow their own motives are more innovative than people from collectivistic cultures and are more likely to accept self-service checkout implementations. Uncertainty avoidance varies across counties and is measured using a scale defining low or high uncertainty avoidance. The main characteristic of uncertainty avoidance is the orientation of society members toward the new and the unknown. According to Hofstede (1980), uncertainty avoidance is related to the degree by which members of a society feel uncomfortable with uncertainty and ambiguity. Therefore, people from cultures with low levels of uncertainty avoidance are more tolerant toward risk and are more willing to try new things. According to Yeniyurt and Townsend (2003) uncertainty avoidance has a negative effect on the acceptance rates of new products. Therefore uncertainty avoidance is related to consumer willingness to adopt new technologies such as self-service technologies in retailing. 2.2 Self Service Technology and Customer Satisfaction Meuter et al. (2000) adopted the Critical Incident Technique (CIT) to identify several sources of consumer satisfaction. Additionally, other significant sources of satisfaction with specific SSTs are recognized in the literature, including general perceptual variables, such as perceived usefulness, optimism, and innovation (Chen et al., 2009), process convenience and service outcome (Makarem et al., 2009), trust in the SST (Johnson et al., 2008; Collier and Sherrell, 2010), sense of control (Marzocchi and Zammit, 2006), speed of transaction and exploration (Collier and Sherrell, 2010), perceived waiting time (Weijter et al., 2007), and other determinants, such as flow experience (Ding 141
  4. 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) et al., 2010), and types of self-service channel (Buell et al., 2011). Among these, only a few take account of SST employed in retail stores (e.g. Marzocchi and Zammit, 2006; Weijter et al., 2007). Moreover, although these studies provide some initial understanding, they do not sufficiently address how SST affects consumer satisfaction based on well-developed theoretical grounds, expect for the studies of Johnson et al. (2008), Chen et al. (2009) and Ding et al. (2010). In addition, little attention is paid to the ways in which consumer satisfaction may impact on consequence behaviour, such as future intention (e.g. Chen et al., 2009). Retail self service technologies are characterized by the use of information and communications technologies to replace the labour of service clerks. The customers themselves are playing the role of service employees with the assistance of new information systems and electronic retail service applications. The business processes are changing from one where the retailer serves all customers to one where the customers serve themselves. SSTs are technological interfaces that allow customers to perform the entire service on their own, without direct assistance from service employees (Meuter, Ostrom, Roundtree, & Bitner, 2000). SSTs are used in various industries. A large number of research papers have analyzed the efficacy of SSTs in banking and tourist industries. These SSTs are classified into different types. For example, SSTs include automated teller machines (ATMs), automated hotel checkout, banking by telephone and services over the Internet (Meuter et al., 2000). Retailing as a labour intensive business has a huge potential for SSTs. One of the SSTs that is widely implemented in retail stores is the self-scan checkout which is used to replace the checkout clerk. These checkout stations have customers scan the barcodes of their products, pay for the products and put them into bags on their own, without help of service employees (Schliewe & Pezoldt, 2010). This important retailing technology decreases the number of employees and thus the costs of operations. Technological innovations in retailing also yield strong consumer advantages (e.g. speed, accuracy, economy) over retailing services not based on SSTs (Zeithaml & Gilly, 1987). 2.3 Self Service Technology Acceptance Factors According to a review of SSTs literature published over a ten year period, there are over 60 publications related to SSTs acceptance. The review shows that there are 29 different self-service factors that influence the adoption of SSTs (Kelly Lawlor, & Mulvey, 2010). Personal characteristics have been identified as important psychological determinants of technology acceptance. These characteristics include constructs like social pressure, self-efficacy and technology anxiety (Eastin, 2002; Meuter et al., 2003; Meuter et al., 2005; Nysveen et al., Schliewe & Pezoldt, 2010). Social pressure or subjective norms are defined as the degree to which an individual believes that people who are important to themselves influence their actions to do something (Fishbein & Ajzen, 1975). The perceived self-efficacy relates people’s beliefs to their capabilities to produce given activities (Bandura, 1977). There is a positive relationship between self-efficacy and technology acceptance and therefore customers with higher self-efficacy are expected to have more confidence in their ability to use SSTs (Schliewe & Pezoldt, 2010). Technology anxiety is related to the level of anxiety of an individual, or level of comfort with decision to use a new technology (Igbaria & Parasuraman, 1989). 2.4 Cultural Dimensions of India Indian consumers represent a typical Asian culture with a newly industrialised economy characterised by collectivism, masculinity and medium uncertainty avoidance. India is actually very masculine in terms of visual display of success and power. In masculine countries the focus is on success and achievements, validated by material gains and the society is driven by competition, achievement and success. India has a medium low preference for avoiding uncertainty. In India there is acceptance of imperfection; nothing has to be perfect nor has to go exactly as planned. India is traditionally a patient country where tolerance for the unexpected is high. At the same time here is a 142
  5. 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good of one’s defined in-group(s). In such situations, the actions of the individual are influenced by various concepts such as the opinion of one’s family, extended family, neighbors, work group and other such wider social networks that one has some affiliation toward. Hence Indians display clear collectivist traits. From all this it is quite evident that Indians have a medium level of technology anxiety and medium level of self efficacy. At the same time group opinions will most likely influence the adoption of new retail innovations such as SSTs. So as far as adoption of new products and service technology are concerned , if the group or the society approves the product or the service then individual consumers will follow the group and there will be ubiquitous acceptance. 2.5 Cultural Dimensions of Indonesia The deep drivers of Indonesian culture are again collectivism, low masculinity and medium low preference for avoiding uncertainty. Indonesia is a highly collectivist society. This means there is a high preference for a strongly defined social framework in which individuals are expected to conform to the ideals of the society and the in-groups to which they belong. One place this is visible clearly is in the aspect of the Family in the role of relationships. For example, In Indonesia, if one wishes to marry, it is important to meet a woman’s family because the family is so important to her. It is inappropriate to court a woman and formalize the relationship without informing the parents of the girl first. Indonesian children are committed to their parents, as are the parents committed to them all their growing lives. Their desire is to make their parents' life easier. There is a desire to take care of parents and give them support in their old age. There is an Asian saying that is accepted in Indonesia, "You can get another wife or husband but not another mother or father". This family loyalty is also apparent in the fact that Indonesian families keep elders (such as grandparents) at home instead of sending them to any institution. Indonesia is less Masculine than some other Asian countries like Japan, China and India. In Indonesia status and visible symbols of success are important but it is not always material gain that brings motivation. Often it is the position that a person holds which is more important to them because of an Indonesian concept called “gengsi” – loosely translated to be, “outward appearances”. It is important that the “gengsi” be strongly maintained thereby projecting a different outward appearance aimed at impressing and creating the aura of status. Indonesia has a medium low preference for avoiding uncertainty. This means that there is a strong preference in Indonesia toward the Javanese culture of separation of internal self from external self. This also means that maintaining work place and relationship harmony is very important in Indonesia, and no one wishes to be the transmitter of bad or negative news or feedback. Perhaps one very key phrase in Indonesia that describes how this works is “Asal Bapak Senang” (Keep the Boss Happy). From all these dimensions it can be inferred that compared to Indians the Indonesians have less technology anxiety and medium level of self efficacy. But as they value the social well being concept, group opinions will most likely influence the adoption of new retail innovations such as SSTs. 3. OBJECTIVES OF THE STUDY i) To develop a comprehensive framework for customer satisfaction with self service technology influenced by cultural dimensions of Indian and Indonesian consumers. ii) To explore the influence of the major cultural dimensions on SST acceptance in Indian and Indonesian retail settings. 143
  6. 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) Hence the following hypotheses have been formulated: H1: Collectivist culture will negatively influence the possibility of SST acceptance. H2: Collectivist culture will negatively influence the consumer perception regarding customer satisfaction with SST. H3: Low degree of uncertainty avoidance will positively influence possibility of SST acceptance. H4: Low degree of uncertainty avoidance will positively influence consumer perception regarding customer satisfaction with SST. H5: High level of masculinity will positively influence possibility of SST acceptance. H6: High level of masculinity will positively influence consumer perception regarding customer satisfaction with SST. H7: Acceptance of SST will positively influence the perception regarding customer satisfaction with SST. 4. RESEARCH METHODOLOGY The survey instrument was developed based on a cross cultural survey designed by Schliewe & Pezoldt (2010). Table1 shows the 21 measurement instruments or variables considered for the survey. Seven point Likert Scale was used for the respondents to state their level of agreement with the series of statements stated in Table1 (7-strongly agree to 1-strongly disagree). The survey consists of three sections including the demographics, cultural dimensions influence and satisfaction associated with self service technology. Sampling Data was collected by distributing a questionnaire to 300 people of 3 cities of India -Delhi, Mumbai & Bangalore who were shopping in the retail outlets of Big Bazar, Inorbit Mall and Auchan respectively. The choice of participants was based on Convenience Sampling and the survey was conducted in the months of March and April 2013. For Indonesia 300 consumers were surveyed in the cities of Jakarta and Bandung who were shopping in Carrefour, Lotte Mart and Hero supermarket. Again the choice of participants was based on Convenience Sampling and the survey was conducted in the month of January 2013. Structural Equation Modeling and Confirmatory Factor Analysis have been used for the multivariate analysis with the application of SPSS and SPSS AMOS 19. 144
  7. 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) Table 1: Measurement Items Used For Survey Constructs Measurement Items Collectivism COL1 (COL) COL2 The people who are important to me would think I should use SST It is expected that people like me would use SST COL3 COL4 People who are important to me would agree that using SST is a satisfying experience UA1 I can use SST even if I had never used them before UA2 I can use SST even if no one had shown me how to use them UA3 I could use SST if I had seen someone using that before UA4 I feel apprehensive about using technology UA5 Masculinity (MAS) Most people who are important to me would approve of using SST for better customer satisfaction COL5 Uncertainty Avoidance (UA) People I look up to would expect me to use SST SST will make the shopping experience more satisfying MAS1 I can use SST with confidence even for the first time MAS2 SST is the latest technology innovation in retail and I must learn to use it MAS3 Smart shoppers must use SST for efficient management of time MAS4 I would like to be the first one to use SST in my reference group Self Service SST1 Technology SST2 Acceptance SST3 (SST) SST4 Perceived CS1 Customer CS2 Satisfaction with the use of SST (CS) CS3 Use of SST enhances the overall shopping experience Frequent usage of SST shall reduce technology anxiety gradually Use of SST shall lead to saving of time and ease of shopping Use of SST will decrease the dependency on frontline service employees I would prefer to shop in an outlet equipped with SST I need not stand in the long ques in the weekends for bill payment I would recommend others also to learn using SST for better shopping experience. 145
  8. 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) Table 2: Sample Characteristics India Demographics Indonesia Frequency % Frequency % Male 144 48 138 46 Female 156 52 162 54 Total 300 100 300 100 Bill Paying 176 58 100 33 Credit Card Bonus Redemption 23 7 48 16 Membership card points redemption 86 28 72 24 Money refill into virtual account 15 5 80 27 Total 300 100 300 100 Working Professionals 135 45 110 36 Students 58 19.3 128 43 Home Makers 107 35.7 62 21 Total 300 100 300 100 21-30 83 27.6 114 38 31-40 116 38.7 109 37 41-50 71 23.7 70 23 Above 50 30 10 7 2 Total 300 100 300 100 Gender Services to be availed with SST Occupation Age (years) 146
  9. 9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) 5. DATA ANALYSIS & RESULTS First of all the reliability of the questionnaire was checked using Cronbach’s Alpha The Cronbach’s Alpha value of 0.897 shows very high internal consistency among the measurement items and hence the measurement model for the research was developed. Table 3: Reliability Statistics Cronbach's Alpha Cronbach's Alpha N of Items Based on Standardized Items .897 iii) .900 21 Measurement Model Fit For Indian Consumers The measurement model indicated an acceptable model fit of the data (χ2= 416.089, df=179, p<0.001; χ2 /df= 2.325; CFI= 0.913; TLI=0.90; IFI=0.92; NFI=0.86; PNFI= 0.732; PCFI= 0.80 and RMSEA= .051) For Indonesian consumers the measurement model indicated an acceptable model fit of the data (χ2= 470.089, df=179, p<0.001; χ2 /df= 2.625; CFI= 0.90; TLI=0.88; IFI=0.90; NFI=0.84; PNFI= 0.712; PCFI= 0.78 and RMSEA= .053) Reliability and Validity The Cronbach’s Alpha for the measurement instrument came out as 0.897 which is acceptable and shows the instrument is reliable. We further proved the reliability of the scale with the score of Composite Reliability (CR) and Average Variance Extracted (AVE) of all the factors along with SST acceptance and perceived customer satisfaction with SST (Fornell and Larcker, 1981; Hair et al., 2006), which is shown in table 4. Composite reliability (CR) of all the latent variables is greater than the acceptable limit of 0.70 (Carmines and Zeller, 1988). The average variance extracted for all the factors is greater than 0.5, which is acceptable (Fornell and Larcker, 1981). Discriminant Validity Table 6 shows the discriminant validity of the constructs. Diagonal elements in the correlation matrix of constructs are the square root of the AVE values. Fornell and Larcker (1981) state that discriminant validity can be assessed by comparing the average variance extracted (AVE) with the corresponding inter-construct squared correlation estimates From table 5 it is evident that the square root of the AVE values of all the latent constructs are greater than the interconstruct correlations which supports the discriminant validity of the constructs. 147
  10. 10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) Table 4: Composite Reliability and Average Variance Extracted INDIA INDONESIA Factors CR AVE CR AVE Collectivism 0.91 0.68 0.92 0.68 UncertaintyAvoidance 0.93 0.73 0.91 0.64 Masculinity 0.87 0.65 0.88 0.62 Self Service Technology 0.82 0.58 0.81 0.71 Perceived Customer Satisfaction with use of SST 0.89 0.6 0.87 0.69 Table 5: Discriminant Validity Indian Consumers COL UA MAS SST CS COL 0.824 UA 0.771 0.854 MAS 0.51 0.472 0.8 SST 0.579 0.415 0.562 0.76 CS 0.456 0.421 0.423 0.507 0.774 SST CS Indonesia COL UA MAS COL 0.810 UA 0.641 0.824 MAS 0.41 0.523 0.735 SST 0.422 0.475 0.586 0.78 CS 0.487 0.481 0.493 0.470 i) 0.702 Structural Model & Hypotheses Testing Structural equation modeling was used to estimate the parameters of the structural model. Goodness of fit statistics of the structural model were acceptable, For Indian consumers :(χ2= 270, df =179, p<0.001; χ2 / df= 1.51 (<2); CFI= 0.95; TLI=0.95; IFI=0.95; NFI=0.87; PNFI= 0.73; PCFI= 0.81 and RMSEA= .051). For Indonesian consumers: :(χ2= 277, df =179, p<0.001; χ2 / df= 1.55 (<2); CFI= 0.92; TLI=0.90; IFI=0.91; NFI=0.85; PNFI= 0.75; PCFI= 0.80 and RMSEA= .05). 148
  11. 11. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) Results of Hypotheses Testing INDIA INDONESIA Hypothesis Hypothesised Paths Standardised Path Coeffecients p Value Results Standardised Path Coeffecients p Value Results H1: Collectivist culture/SST acceptance COL=>SST 0.501 *** Accept 0.078 *** Accept H2: Collectivist culture/Customer satisfaction with SST COL=>CS 0.606 0.061 Accept 0.897 0.321 Accept H3: Medium Low UA/ SST acceptance UA=>SST -0.149 0.172 Reject 0.586 0.38 Accept H4: Medium Low UA/Customer Satisfaction with SST UA=>CS 0.172 0.367 Reject 0.679 *** Accept H5: Masculinity/ SST acceptance MAS=>SST 0.377 *** Accept 0.786 *** Accept H6: Masculinity/ Customer Satisfaction with SST MAS=>CS 0.121 0.01 Accept 0.354 0.021 Accept H7: acceptance Customer Satisfaction SST SST=>CS 0.325 0.004 Accept 0.467 0.001 Accept SST / with Notes: :*Implies significant at p<.05; ** Implies significant at p<.01; *** Implies significant at p<.001; NS Implies "not significant" For Indian Consumers The hypotheses testing results indicate that though collectivist culture will have a negative influence on the acceptance of SST ( c=0.501 at p<0.001), that doesn’t imply that it affect their perceptions regarding the customer satisfaction associated with the usage of SST. Medium low uncertainty avoidance will not influence the SST acceptance positively because certain degree of uncertainty avoidance will actually let the Indians be happy with the conventional methods only and they are not ready to experiment with the latest technology so easily due to technology anxiety and apprehensions (c=-0.149 at p<0.05). But again due to uncertainty 149
  12. 12. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) avoidance Indian consumers do not deny regarding their perceptions about customer satisfaction with SST as they are very much aware of the positive aspects of using SST. Hence medium low uncertainty avoidance positively influence the customer satisfaction perception regarding usage of SST (c=0.172 at p<0.05). High on masculine dimensions Indians would definitely like to show off their latest technology and technological experience , hence on that grounds it has positive influence on SST acceptance (c=0.377 at p<0.001) and on customer satisfaction with SST (c=0.121 at p<0.01). Acceptance of SST will positively influence the perception regarding customer satisfaction with SST (c=0.325 at p<0.01). Indonesian Consumers For Indonesian consumers also highly collectivist nature will adversely influence on their acceptance of SST and also their perception regarding customer satisfaction associated with SST. Low uncertainty avoidance will also help them develop positive attitude towards SST acceptance and develop a positive perception regarding customer satisfaction associated with SST. Indonesia ranks low on masculinity and hence it is not very easy for them accept any new technology due to technology anxiety and their reserved nature. Acceptance of SST will positively influence the perception regarding customer satisfaction with SST. 6. CONCLUSION Due to high level of social pressure it is very essential on the parts of retailers to build a positive social opinion regarding the benefits of such technological innovation. With the Government of India approving FDI in retail, Indians are now ready to shop at some of the largest global retailer’s outlet but at the same they must upgrade themselves to become the smart shoppers. One should not undermine the self efficacy factor due to social pressure or some anxiety. Consumers are buying handsets loaded with latest technology but at the same time when they are asked to use the technology in public they have a hesitant reaction. Indonesian consumers are increasingly opening their wallets, sustaining the country's solid economic growth and the student community is the key driver behind the technology led retail revolution in this south east nation. According to the results, Indian consumers are definitely in a cultural dilemma regarding the acceptance of self service technologies in the retail settings. On one hand due to high masculinity they would like to adapt themselves according to various upgraded technology requirements but at the same time they are the people who would give preference to the social approval more than self. Also Indians are ready to compromise with any situation hence they don’t mind shopping in the conventional way even though they feel that using SST will enhance their shopping experience. Indonesians on the other hand being highly collectivist and low masculine in nature are also somewhat not very open towards SST but at the same time the young population is taking the stride driven by low uncertainty avoidance to take on the latest technological innovations. 7. IMPLICATIONS This research considered the overall consumer’s perception and acceptance level towards self service technology. Future research shall focus on different age groups wherein it is expected that the youth segment might give priority to their self efficacy instead of the social pressure and on the other hand the baby boomers or GenX consumers might have a sceptical notion for the same 150
  13. 13. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 5, September - October (2013) Figure 1: The Structural Model REFERENCES 1. 2. 3. 5. 6. 7. Bandura, A. (1977). Self-efficacy toward a unifying theory of behavioural changes. Psychological Review, 84(2), 101-215. Erumban, A. A., & Jong, S. B. (2006). Cross-country differences in ICT adoption: A consequence of Culture. Journal of World Business, 41, 302-214. Fishbein, M., & Ajzen, I. (1975). Belied, attitude, intention and behaviour: an introduction to theory and research, Addison-Wesley, Reading, MA. Igbaria, M., & Parasuram, S. (1989). A path analytic study of individual characteristics, computer anxiety and attitudes toward microcomputers. Journal of Management, 15(3), 373388. Kelly, P., Lawlor, J., & Mulvey, M. (2010). A review of key factors affecting consumers’ adoption and usage of self-service technologies in tourism. THRIC Conference, Shannon, Ireland, 15-16 June, 2010. Lim, K. H., Leung, K., Sia, C. L., & Lee, M. K. (2004). Is e Commerce boundary-less? Effects of individualism–collectivism and uncertainty avoidance on Internet shopping. Journal of International Business Studies, 35, 545-559. 151
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