Internet-BasedSelf-Services:RelationalAspectsofE-Banking–aPrivateClientSurveyAnalysis1.IntroductionGlobalizationandderegulationshaveincreasedcompetitioninthemarketplaces.Theincreasedcompetition,inturn,callsforthatorganizationscontinuouslyincreasetheirproductivityanddecreasetheircosts.Investmentininformationtechnologyisoneimportantmeanstoincreaseproductivityanddecreasecosts.Advancesintechnologyhavechangedthepreconditionsforservicedeliverydramaticallyinrecentyears,withtremendouspotentialimpactonself-serviceoptionsandonservicesupport.Serviceprovidersemploytechnologyatvariousstagesintheservicedeliveryprocessesandinservicesupportoperationstoimprovethequalityandproductivityintheirserviceofferings(Blumberg1994).Thesetechnology-enabledchangesarechangingthewayserviceprovidersandtheircustomersinteractwitheachother(Dabholkar1994).Oneinfluentialformoftechnology-basedself-serviceisInternetbanking,whichisdenotede-bankingintheremainderofthisreport.Alreadymorethantwodecadesago,LovelockandYoung(1979)highlightedthatanoverlookedwaytoincreaseproductivityinserviceindustriesistochangethewaysconsumersinteractwithserviceproviderfirms.Asthesheerpresenceofthecustomeristhedominantconstraintontheefficiencyofservicesystems(Chase&Tansik1983),servicemanagerscanincreaseproductivitybychangingproceduresatthepointofdelivery,suchasreplacingabanktellerwithamachine.Sinceserviceindustriestypicallyinvolvetheconsumerintheproductionprocess,changingproceduresatthepointofdeliverydirectlyaffectconsumers.However,asLovelockandYoung(1979:172)havepointedout,alackofsensitivitytoconsumerneedsandconcernsalltoooftenimplyatoolowcustomers’acceptancelevel:“ThegreatestsuccessinintroducingATMsisenjoyedbybanksthatinvesttimeandefforttodevelopcarefullythought-outintroductoryprograms.Typically,theseprogramsemphasizedeploymentofspeciallytrainedstafftohelpcustomerslearnhowtousethemachinesandassistthemiftheyhaveanyproblem.”Inadditiontopersonalselling,alsothedesignoftheATMsandthecomplementarysupportenabledbyanattachedtelephone,staffed24hoursperday–withwhichacustomercancallforassistanceincaseofdifficulties–hasproventobeimportantfactorsforconsumeracceptanceoftheATMs(ibid).Atransactionmadeatthebranchofficehasasignificantlyhighercostforthebankcomparedtoatransactionperformedbythecustomeritself.AstudyontheUSretailbankingshowedthatthetransactioncostoftelephonebankingisonly40%ofthecostforaphysicalbranchtransaction(Talmor1995).Also,highlaborcostspromptservicefirmstoconsider(technology-based)self-servicedeliverysystemoptions.Thebenefitsforserviceprovidersfrom(technology-based)self-servicedeliverysystemsareobviouslydecreasedcostsandincreasedproductivity(Chase1978,Lovelock&Young1979).Banksservetwotypesofclients:households(“retailbanking”)andfirmsorinstitutions(“wholesalebanking”).Inthisreportthediscussionwillbelimitedtoretailbanking,whichcontributestoasubstantialproportionofthetotalprofitsgeneratedbybanks.1.1.E-bankingasanexampleofInternet-basedself-serviceTechnicalinnovationssuchas‘bankontelephone’ande-bankingovertheInternetinrecentyearshavebecomemoreandmorecommonasthechannelchoiceforthehouseholdsintheirinteractionswiththebank..Thesenewtechnicalinnovationsmakeiteasierforboththebankandfortheclientsto,e.g.,carryouttransactionsandtobuyandsellstocks.Theincentivesforthenewbankingchannelsare,amongotherreasons,expectationsforincreasedproduc...
