How to infuse mobile technologies in frontline service encounters? An experimental analysis of customer perceptions of service competence

In technology-infused frontline service encounters, human-based service represents a high degree of uncertainty. However, understanding how technology can meet customer demands without undermining the importance of human interaction is crucial for retailers to remain competitive. However, empirical evidence comparing different types of service encounters (technology-facilitated vs. technology-assisted vs. technology-free) is lacking. Building on existing approaches to technology-enabled services, this study aims to extend the understanding of the optimal type of technology infusion and human interaction in the context of customer trust and willingness to pay. Drawing on social interaction theory, emphasizing that technology can influence the nature and quality of interactions between customers and frontline employees, this paper empirically examines different types of service encounters. A quasi-experimental online study (N = 944) was conducted.General results show that technology infusion within the service encounter has a negative impact on customers’ trust in the frontline employee, but a positive impact on customers’ willingness to pay. Furthermore, a mediating influence of customers’ perceptions of the competence of frontline employees can be demonstrated. The results show that customers place more value on a technology-facilitated encounter than on a technology-assisted service. Based on the findings, this paper derives implications for retail managers at various levels. Since the customer’s perception of the competence of front-line employees in using a technology is of high relevance to the customer, the retailer should pay more attention to training employees in the use of these technologies in their interactions with customers because of the perception of service competence and other relationship-building criteria such as trust. In addition, the competent use of these technologies and the customer’s perception of them can also affect the customer’s willingness to pay and thus the success of the business.