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Understanding Customer Value in Technology-Enabled Services: A Numerical Taxonomy Based on Usage and Utility

Author

Listed:
  • Min Kyung Lee

    (College of Business and Behavioral Science, Clemson University, Clemson, South Carolina 29634)

  • Rohit Verma

    (School of Hotel Administration, Cornell University, Ithaca, New York 14853)

  • Aleda Roth

    (College of Business and Behavioral Science, Clemson University, Clemson, South Carolina 29634)

Abstract

Use of technologies in service encounters can enhance service delivery and increase customer satisfaction in services. Our research develops a numerical taxonomy that provides a deeper understanding of usage and value of customer-facing technology-based innovations in the U.S. restaurant industry. In this study, utility is a proxy for intrinsic customer value. Usage was estimated by past visits to restaurants and utility was calculated by using a specific type of discrete choice experiment known as Best-Worst (or max-diff) experiment. We offer insights for service strategy technology choices and customer value in service delivery systems research and practice. Furthermore, we advance service science by discussing the inherent management pitfalls of failing to distinguish between technology usage and utility in services.

Suggested Citation

  • Min Kyung Lee & Rohit Verma & Aleda Roth, 2015. "Understanding Customer Value in Technology-Enabled Services: A Numerical Taxonomy Based on Usage and Utility," Service Science, INFORMS, vol. 7(3), pages 227-248, September.
    • Handle: RePEc:inm:orserv:v:7:y:2015:i:3:p:227-248
    DOI: 10.1287/serv.2015.0105
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