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A Services Landscape Transformed by Technology:
Findings from the 2014 National Technology
Readiness Survey
Presented to F...
Foreshadowing… the last slide
Photo source: www.buzzaboutbees.net
Topics Covered Today
Technology Readiness
Fastest growing e-services
TR beliefs behind their growth
Foundational technolog...
Our Research Program and The TR
Construct
Our Research Program
National Technology Readiness Survey
– Authored by Parasuraman and Rockbridge
– Replicated in 1999, 2...
What is Technology Readiness? (TR)
 TR refers to people’s propensity to embrace
and use new technologies for accomplishin...
Inhibitors
Contributors
Components of Technology Readiness
Optimism
Innovativeness
Discomfort
Insecurity
Technology
Readin...
TRI 2.0: A Multi-Item Measure
The Technology Readiness Index was first
published in the JSR in 2000
TRI 2.0 will be publis...
TRI 2.0 (16 item index)
• Give advice
• First to adopt
• Self reliant
• Keeps informed
• People too dependent on
tech
• Te...
Distribution of TRI 2.0 (2014 Study)
TRI 2.0 Includes a Segmentation
% of
population
Motivators Inhibitors
TRI
Optimism Innovative Discomfort Insecurity
Explor...
Profile of TR Segments (2014 Data)
Owns
smart
phone
#
gadgets
#
eServices
Demographic
Correlates
Explorers 79% 8.1 18.1 Yo...
2014 Technology Readiness Survey
Methodology
Nationally representative survey of 1230 U.S.
adults
Frame: online panel from 2 reputable
providers
Weighted t...
Fastest Growing e-Services
2009 to 2014
Fastest Growing e-Services
www.rockresearch.com
Low Penetration, High Growth High Penetration, High Growth
Low Penetration...
E-Service Categories (Based on Factor Analysis)
Category Growth* Services
Health 155% Checked tests online, communicated w...
Technology Readiness Beliefs behind Adoption
Correlation of TR Dimension with # of Activities
Category Opt Inn Dis Ins TRI...
Foundational Technologies behind
Services Growth
18%
29%
36% 36% 37% 40%
46%
51%
60%
66%
71%
78%
96%
Key Technology Growth and
Projected Penetration in 2016
2012
2014
2016...
Portable GPS
Portable video player
Portable music player (MP3)
Digital video camera
Digital point and shoot
camera
eBook r...
Omni-Channel Service Behavior
2010200820062004200220001998
The Not-So Old Days
The Changing Consumer Journey
20142012
Types of Shopping Journeys ($50 or more)
In-person
Only
Shoppers,
29%
Superficial
In-person
Shoppers,
17%
Methodical
High ...
Half of Purchases are Complex
Uni-Channel (52%)
In-person Only (29%): Offline
channels, store visit, store
purchase
Simple...
Technology Readiness Correlates
Pioneers [high on motivators + high on
inhibitors] are more likely to engage in
methodical...
Bank Channel Convergence
Branch
Mobile
Call Center
Online
1 2 3+
Market 21% 33% 46%
Explorers 16% 26% 58%
Pioneers 18% 25%...
Implications
Service Transaction of the Future?
Channel Foraging:
“To search about; seek; rummage; hunt”
Questions for Service Managers
How techno-ready are our customers?
How do we provide information, purchase capability
and ...
Questions for Researchers
When does TR matter for a technology-based service?
When do different TR components matter?
Can ...
www.rockresearch.com
Thanks!
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A Services Landscape Transformed by Technology: Findings from the 2014 National Technology Readiness Survey, Colby and Parasuram

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Results to the 2014 National Technology Readiness Survey, Technology Readiness, e-services growth, Omni-channel behavior, and Channel Foraging.

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A Services Landscape Transformed by Technology: Findings from the 2014 National Technology Readiness Survey, Colby and Parasuram

  1. 1. A Services Landscape Transformed by Technology: Findings from the 2014 National Technology Readiness Survey Presented to Frontiers in Services 2014 Charles L. Colby, Chief Methodologist & Founder, Rockbridge Associates, Inc. For info, contact: Charles Colby ccolby@rockresearch.com A. Parasuraman, Professor, Marketing University of Miami For info, contact: Dr. A. “Parsu” Parasuraman parsu@miami.edu
  2. 2. Foreshadowing… the last slide Photo source: www.buzzaboutbees.net
  3. 3. Topics Covered Today Technology Readiness Fastest growing e-services TR beliefs behind their growth Foundational technologies behind their growth Omni-channel behavior and “Channel Foraging” Implications for management
  4. 4. Our Research Program and The TR Construct
  5. 5. Our Research Program National Technology Readiness Survey – Authored by Parasuraman and Rockbridge – Replicated in 1999, 2000, 2001, 2002, 2004, 2005/6, 2007, 2009, 2012, 2014 TRI Scale licensed to over 120 scholars in 30 countries, including Germany, Turkey, China, UK, Brazil, India, Malaysia, Philippines, Canada, South Africa – Contexts include financial services, retailing, communications, travel, e-government, healthcare Co-sponsored by the Center for Excellence in Service
  6. 6. What is Technology Readiness? (TR)  TR refers to people’s propensity to embrace and use new technologies for accomplishing goals in home life and at work  TR reflects an overall state-of-mind; it is not a measure of competence  It describes the person, not the technology  Measured by the Technology Readiness Index (TRI)
  7. 7. Inhibitors Contributors Components of Technology Readiness Optimism Innovativeness Discomfort Insecurity Technology Readiness
  8. 8. TRI 2.0: A Multi-Item Measure The Technology Readiness Index was first published in the JSR in 2000 TRI 2.0 will be published in JSR this year* The latest scale version: – 16 agreement scaled attributes – 4 sub-scales for measuring individual dimensions of TR – A segmentation scheme classifies individuals into five distinct types *“An Updated and Streamlined Technology Readiness Index: TRI 2.0”, A. Parasuraman and Charles L, Colby, Journal of Services Research, published online June 22, 2014
  9. 9. TRI 2.0 (16 item index) • Give advice • First to adopt • Self reliant • Keeps informed • People too dependent on tech • Technology distracts • Tech lowers relationship quality • Distrust of virtual venues • Distrusts tech support • Tech support unhelpful • Tech not designed for us • Manuals are too technical • Better quality life • Freedom of mobility • Control • Personally productive Optimism Discomfort InnovativenessInsecurity Technology Readiness
  10. 10. Distribution of TRI 2.0 (2014 Study)
  11. 11. TRI 2.0 Includes a Segmentation % of population Motivators Inhibitors TRI Optimism Innovative Discomfort Insecurity Explorers 27% 4.6 4.1 2.3 2.6 3.9 Pioneers 20% 4.3 4.0 3.7 4.1 3.1 Skeptics 27% 3.7 3.1 2.8 3.4 3.1 Hesitators 14% 4.1 2.1 3.2 3.6 2.8 Avoiders 13% 2.6 1.8 3.8 4.2 2.1 Total 3.9 3.2 3.0 3.5 3.2
  12. 12. Profile of TR Segments (2014 Data) Owns smart phone # gadgets # eServices Demographic Correlates Explorers 79% 8.1 18.1 Younger, Male, Tech jobs Pioneers 77% 8.1 16.2 Younger, Male, Ethnically diverse, Foreign born, Tech jobs Skeptics 62% 6.6 14.5 Mirrors General Population Hesitators 52% 5.9 13.2 Older, Female, Retired Avoiders 33% 4.9 8.8 Older, Female, not Diverse, Less educated, Retired Total 64% 7.0 14.9
  13. 13. 2014 Technology Readiness Survey
  14. 14. Methodology Nationally representative survey of 1230 U.S. adults Frame: online panel from 2 reputable providers Weighted to match U.S. Census Margin of Error +/- 3% Limitations: – Excludes “offline” population – Uses an online panel
  15. 15. Fastest Growing e-Services 2009 to 2014
  16. 16. Fastest Growing e-Services www.rockresearch.com Low Penetration, High Growth High Penetration, High Growth Low Penetration, Low Growth High Penetration, Low Growth Medical tests
  17. 17. E-Service Categories (Based on Factor Analysis) Category Growth* Services Health 155% Checked tests online, communicated with professional Small Purchases 46% Purchased items <$10, $10 to $100 Entertainment 37% Download movies, download songs, streaming music, live TV, download books, live TV, live radio, video call, watch video C2C 20% Sold to another consumer, bought from another Big Purchases 16% Travel, investments, items >$100 Financial 15% Online banking, moved funds online, checked utility account, managed credit card, bill paying, paid bill at provider website Government 0% Visited federal site, did federal business, visited state/local site, did state/local business News/research 0% Read news/mag online, researched health info Learning -5% Online course, visited membership org site *Growth from 2009 to 2014; not all items tracked in 2009.
  18. 18. Technology Readiness Beliefs behind Adoption Correlation of TR Dimension with # of Activities Category Opt Inn Dis Ins TRI Influencers Health .06 .09 0.03 ns 0.03 ns 0.04 ns Not important Small Purch .22 .21 -.15 -.15 .25 All 4 beliefs Entertainment .35 .46 -.20 -.19 .42 All 4 beliefs C2C .20 .23 -0.05 ns -.08 .20 Motivators Big Purchases .24 .25 -.09 -.10 .24 Motivators Financial .25 .26 -.17 -.10 .27 Motivators & Disc Government .20 .20 -.07 -0.05 ns .18 Motivators News/research .18 .13 -.18 -0.04 ns .18 Opt & Disc Learning .16 .20 -.08 -.10 .19 Motivators
  19. 19. Foundational Technologies behind Services Growth
  20. 20. 18% 29% 36% 36% 37% 40% 46% 51% 60% 66% 71% 78% 96% Key Technology Growth and Projected Penetration in 2016 2012 2014 2016 projected Foundational Technologies
  21. 21. Portable GPS Portable video player Portable music player (MP3) Digital video camera Digital point and shoot camera eBook reader Usage of Applications on Single Function And Multiuse Devices Multi-function device Both Standalone device The Ubiquitous Do-it-all Device 14% 22% 18% 16% 13% 20%
  22. 22. Omni-Channel Service Behavior
  23. 23. 2010200820062004200220001998 The Not-So Old Days
  24. 24. The Changing Consumer Journey 20142012
  25. 25. Types of Shopping Journeys ($50 or more) In-person Only Shoppers, 29% Superficial In-person Shoppers, 17% Methodical High Touch Shoppers, 16% Simple Digital Shoppers, 20% Analytical Digital Shoppers, 16% Phone Orderers, 3% Store checkout: 62%Online checkout: 36%2% 6% Checked out with smartphone SHOP NOW 25 % OFF
  26. 26. Half of Purchases are Complex Uni-Channel (52%) In-person Only (29%): Offline channels, store visit, store purchase Simple Digital (20%): Research & order online, ship to home or work Phone Orderers (3%): Completely by phone or smartphone Omni-Channel (48%) Superficially In-Person (17%): research online and offline, store purchase Methodical High-Touch (16%): intense info search in multi- ple venues, store purchase Analytical Digital (16%): intense info search, store visits, online purchase
  27. 27. Technology Readiness Correlates Pioneers [high on motivators + high on inhibitors] are more likely to engage in methodical high touch and analytical digital purchase processes Avoiders [least techno-ready] and Hesitators [optimistic + high on inhibitors] are more likely to engage in in-person only purchases Explorers [most techno-ready] tend to prefer online channels
  28. 28. Bank Channel Convergence Branch Mobile Call Center Online 1 2 3+ Market 21% 33% 46% Explorers 16% 26% 58% Pioneers 18% 25% 57% Skeptics 19% 40% 42% Hesitators 23% 47% 30% Avoiders 41% 31% 28% Number of Channels Used (Self-reported)
  29. 29. Implications
  30. 30. Service Transaction of the Future? Channel Foraging: “To search about; seek; rummage; hunt”
  31. 31. Questions for Service Managers How techno-ready are our customers? How do we provide information, purchase capability and servicing across multiple platforms? Do channels meet the needs of all TR segments? Do we offer maximum flexibility for fulfillment? (Ship anywhere, pick-up anywhere?) How do physical locations fit into our service model? How do we prevent customers from taking advantage of expensive bricks & mortar channels (look but not buy)? How do we get our message in front of consumers who use a wide variety of info sources in small doses?
  32. 32. Questions for Researchers When does TR matter for a technology-based service? When do different TR components matter? Can we forecast demand using TR as a proxy of innovation? How is the service purchase and usage process changing? Is “channel foraging” truly the future? What is an optimal “show rooming” solution (that charges customers for using physical channels)? What will be the impact of emerging technologies (e.g., robotics) on services behavior? Is the management and operation of services businesses taking on the same complexity as customer behavior, augmented by technology? Should it?
  33. 33. www.rockresearch.com Thanks!

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