The document discusses technology readiness (TR), which refers to a person's propensity to embrace and use new technologies. TR influences perceptions of self-service technologies (SSTs) and behavioral intentions toward them. A technology readiness index (TRI) scale was developed to measure TR across four dimensions: optimism, innovativeness, discomfort, and insecurity. Higher TR is associated with more positive perceptions of SSTs and greater intentions to use them. Understanding customers' TR is important for organizations implementing SSTs to improve adoption.

1. LITERATURE REVIEW Ambuj Pandey
Technology plays a vital role in the delivery of services, with consumers exhibiting varying
levels of readiness to embrace their role to interact with technology.( Janelle Rose and Gerard
Fogarty, 2010).
Technology Readiness (TR) has been defined as “people’s propensity to embrace and use
new technologies for accomplishing goals in home life and at work. (PARASURAMN, 2000,
PP.308). It refers to person's predisposition to use new technologies. (PARASURAMN, 2000)
TR influences perceived SST service quality and behavioural intentions, while perceived SST
service quality has a positive impact on customer satisfaction and behavioural intentions
toward SSTs (Lin et al., 2006). Lin et al (2006) also propose that TR should be given
increased attention by firms implementing SSTs to improve customer perception and
adoption of SSTs. Firms also need to examine all SST service quality dimensions in order to
improve customer satisfaction and behavioural intentions toward SSTs. An aggressive
approach toward strengthening TR drivers and reducing TR inhibitors will show benefits for
both firms and customers.
Parasuraman (2000) developed a scale known as the Technology Readniness Scale. The scale
consists of 36 items along four categories as follows:
1. Optimism: a positive view of technology and a belief that it offers people greater
control, flexibility and efficiency in their lives (which appears similar to Bitner et al. (2002)’s
inclination towards SST and motivation to use)
2. Innovativeness: a tendency to be a technology pioneer and thought leader (appears
similar to Fleming and Artis,(2010)’ perception of affinity towards technology)
3. Discomfort: a perceived lack of control over technology and a feeling of being
overwhelmed by it
4. Insecurity: distrust of technology and skepticism about its ability to work properly.
(Parasuraman, 2000,pp.311).
The first two dimensions are stated as drivers of technology readiness and the latter are
inhibitors and customer scores across these parameters reliably predicted technology-related
behaviour (Parasuraman, 2000).
Meuter, Ostrom, Roundtree and Bitner (2000, p.50) were the first to use the term ‘self-
service technologies’(SST) which they defined as ‘technological interfaces that enable
customers to produce a service independent of direct service employee involvement’ (Kelly
et al., 2010). Kelly et al (2010) state that this term and definition has gained wide acceptance
in subsequent research by others (Makarem, Mudambi and Podoshen, 2009; Dean, 2008;
Forbes, 2008; Shamdasani, Mukherjee and Malhotra, 2008; Beatson, Lee and Coote, 2007;
Curran and Meuter, 2005).
In the retail banking context, convergence of technologies has given birth to different
channels of distribution like Automatic Teller machines (ATM), internet banking, and mobile
banking. This enables the customer to avail the banking services at anytime and anywhere.
These technological interfaces are known as self service technologies (SSTs). Customers
availing banking services through these SSTs get more benefits in terms of time, cost and
energy (Natarajan et al., 2010). Despite these benefits the customer trial, adoption and repeat
usage of SSTs vary among banking customers. Although the kinds of service one can avail
from these SST are similar, the patronage among the SSTs differs. The SST channel choice

2. could be attributed to various factors viz., Nature of service to be availed or purpose,
Perceived risk, Requirements and Benefits.
TR enhances perceived usefulness, perceived ease of use, attitude toward use, and intention
to use. In study of Sheng et al. (2011) results show that TR attenuates the positive
relationship between perceived ease of use and attitude toward using SSTs.(sheng et al.,
2011). In study of sheng et al. (2011) Findings show that TR influences perceived usefulness,
perceived ease of use, attitude toward using SSTs, and behavioral intentions. Therefore, to
achieve better SST service outcomes firms implementing SSTs should give increased
attention to customer TR.
A refined 16-item TRI scale demonstrates sound psychometric properties based on findings
from various reliability and validity tests, as well as scale replications employing several
samples.( Jiun-Sheng Chris Lin, Pei-Ling Hsieh,2012) Assessment of TRI across different
contexts and cultures enhances validity, utility, and generalizability by reducing the number
of items, building a nomological network, and verifying stability. the refined 16-item scale
benefits from reduced complexity and enhanced utility of TRI across contexts and cultures.
Service managers will find the refined TRI less complicated and easier to apply in customer
surveys, which greatly benefits service firms attempting to better understand customers' TR
when implementing self-service technologies. While Parasuraman calls for studies to assess
the generalizability of the TRI scale, the current lack of support for TRI's generalizability is
an important gap that needs to be addressed. The current study fills that gap, increasing the
applicability and generalizability of the TRI scale through refinement, replication and
validation across several samples, contexts, and cultures.
Banks in developing countries are increasingly relying on innovative technologies such as
cellphone banking, landline telephone banking, internet banking and automated teller
machine (ATM) banking to penetrate existing markets and to create new markets.( A.D.
Berndt, S.G. Saunders & D.J. Petzer,2010).
Technology plays a vital role in the delivery of services, with consumers exhibiting varying
levels of readiness to embrace their role to interact with technology.( Janelle Rose and Gerard
Fogarty, 2010). The four technology readiness dimensions, optimism, innovativeness,
discomfort and insecurity were replicated in their study. According to Rose et al. mature
consumers were less likely to be early adopter (explorers and pioneers) and more likely to
adopt at the late growth stage or decline (skeptics and laggards).
Cunningham, Young and Gerlach (2008) classify SSTs in 11 dimensions including:
1)physical product component; 2)customer-employee contact; 3)production of service is
separable/inseparable from consumption; 4)risk level; 5)switching barriers; 6)service is
performed on person/object; 7)relationship between service provider and customer
(formal/informal); 8)process of service delivery is continuous/discrete transactions;
9)customization of service; 10)the contact employee’s judgment on choice of service
provided; 11)convenience of receiving the service. The following SSTs were classified from
consumer’s point of view: ‘online banking, distance education, airline reservations, tax
software, retail selfscanning, online auctions, pay at the pump, ATMs, online brokerage,
interactive phone, Internet search and online car buying (Cunningham et al., 2008)

3. The successful implementation of SSTs is dependent on wide consumer adoption in order to
justify the investment cost (Lee and Allaway, 2002). Kelly et al. (2010) examine seven key
factors, which affect adoption of SSTs, namely perceived risk, trust, perceived ease of use,
perceived usefulness, technology readiness, preference for personal contact and demographic
variables.
Indian banking industry shall witness increased competition. Those banks shall 'win' which
can understand customers, fulfil customer needs and achieve high levels of customer
retention leveraging technology is also recognised as important source for succeeding in this
sector (kamath et al., 2003). Due to adoption of technology, alternative channels of delivery
would become more active. This, in turn, would result in a leaner branch network and better
skilled workforce. Technology, therefore, will impact on the business model strongly by
cutting down costs of delivery and transaction (kamath et al., 2003).