Who do you choose? Comparing perceptions of human vs robo-advisor in the context of financial services

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lixuan Zhang ◽  
Iryna Pentina ◽  
Yuhong Fan
Keyword(s):  
Artificial Intelligence ◽  
Financial Services ◽  
Design Methodology ◽  
The Self ◽  
Financial Advisors ◽  
Content Type ◽  
Adoption Theory ◽  
Performance Expectancy ◽  
Self Service ◽  
Self Service Technology

Purpose This study aims to investigate the differences in consumers’ perceptions of trust, performance expectancy and intention to hire between human financial advisors with high/low expertise and robo-advisors. Design/methodology/approach Three experiments were conducted. The respondents were randomly assigned to human advisors with high/low expertise or a robo-advisor. Data were analyzed using MANCOVA. Findings The results suggest that consumers prefer human financial advisors with high expertise to robo-advisors. There are no significant differences between robo-advisors and novice financial advisors regarding performance expectancy and intention to hire. Originality/value This pioneering study extends the self-service technology adoption theory to examine adoption of robo-advisors vs human financial advisors with different expertise levels. To the best of the authors’ knowledge, it is among the first studies to address multi-dimensionality of trust in the context of artificial intelligence-based self-service technologies.

Understanding the differences of public and private self-service technology

2014 ◽  
Vol 28 (1) ◽  
pp. 60-70 ◽  
Author(s):  
Joel E. Collier ◽  
Daniel L. Sherrell ◽  
Emin Babakus ◽  
Alisha Blakeney Horky
Keyword(s):  
Structural Equation ◽  
Design Methodology ◽  
Equation Modeling ◽  
Public And Private ◽  
Content Type ◽  
Private And Public ◽  
Self Service ◽  
Self Service Technology ◽  
Individual Self ◽  
Practical Implications

Purpose – The purpose of this paper is to explore the potential differences between types of self-service technology. Specifically, the paper explores how the dynamics of public and private self-service technology influence customers' decision to use the technology. Design/methodology/approach – Existing customers of private and public self-service technology were surveyed from the same industry. Using structural equation modeling, the authors examine how relevant self-service constructs influence evaluations and attitudes of customers across both settings. Findings – The analysis reveals that customers' control and convenience perceptions differ across public and private self-service technology. Additionally, customers placed a heavier emphasis on the hedonic or utilitarian evaluation of a service experience based on the type of self-service technology. Practical implications – For managers of self-service applications, understanding the unique differences of public and private self-service technology can aid in the implementation and adoption of the technology. By properly understanding the differences of the self-service types, managers can provide a beneficial experience to the customer. Originality/value – By identifying and describing two distinct categories of SSTs, this study allows managers and researchers to better understand how and why individuals choose to utilize individual self-service technologies. Through understanding the unique dynamics of a public and a private SST experience, retailers can determine the appropriate strategy for customer adoption based on the utilitarian or hedonic functions of the technology.

Consumer responses to the failure of self-service banking technology: moderating role of failure stability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nedra Bahri Ammari ◽  
Abir Hsouna ◽  
Mounia Benabdallah ◽  
Anish Yousaf ◽  
Abhishek Mishra
Keyword(s):  
Word Of Mouth ◽  
Positive Impact ◽  
Negative Word ◽  
The Self ◽  
Content Type ◽  
Consumer Dissatisfaction ◽  
Self Service ◽  
The Stability ◽  
Self Service Technology ◽  
The Impact

PurposeThe purpose of this study is to investigate the impact of dissatisfaction and anger, driven by the failure of the self-service technology of banks, on customers' post-purchase behavioural reactions, such as complaints, negative word-of-mouth (NWOM) and supplier change. The stability of the failure is proposed to moderate these relationships.Design/methodology/approachThe proposed research model was tested through data collected from an online survey of a Tunisian sample of 300 respondents, using the scenario method.FindingsThe study validates the positive impact of dissatisfaction on anger and negative word-of-mouth, as well as that of anger on complaint behaviour and negative word-of-mouth. The relation between dissatisfaction and negative word-of-mouth is mediated by anger. When the failure is stable, dissatisfied users of the self-service technology seek to enhance their negative word-of-mouth and supplier change. The results also show that the stability of the failure enhances the effect of anger on complaint behaviour.Practical implicationsBanks should invest efforts to accelerate the recovery of services to reduce consumer dissatisfaction and anger and prevent adverse behavioural outcomes. Further, they need to ensure that failures are not repeated, as failure stability activates some otherwise non-significant behavioural outcomes, like supplier change.Originality/valuePrevious works have focused on the impact of dissatisfaction and negative emotions for interpersonal services, but very few works have come to associate dissatisfaction, anger, complaint, negative word-of-mouth and supplier change in an integrative framework for an self-service technology failure.

Enhancing the value co-creation process: artificial intelligence and mobile banking service platforms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elizabeth H. Manser Payne ◽  
James Peltier ◽  
Victor A. Barger
Keyword(s):  
Artificial Intelligence ◽  
Service Delivery ◽  
Equation Modeling ◽  
Mobile Banking ◽  
Content Type ◽  
Creation Process ◽  
Age Cohorts ◽  
Value Propositions ◽  
Self Service ◽  
Self Service Technology

Purpose The purpose of this study is to investigate the relationships that influence the value co-creation process and lead to consumer comfort with artificial intelligence (AI) and mobile banking (AIMB) service platforms. Design/methodology/approach A conceptual model was developed to investigate the value-in-use perceptions of AI-based mobile banking applications via five antecedents: baseline perceptions of current bank service delivery; service delivery configuration benefits; general data security; safety perceptions of specific mobile banking services; and perceptions of AI service delivery. Data were collected from 218 respondents and analyzed using structural equation modeling. Findings This study highlights the role and importance of the sequential relationships that impact the assessment of AIMB. The findings suggest that service delivery and the customer’s role in value co-creation change as AI is introduced into a digital self-service technology channel. Furthermore, AIMB offers transaction-oriented (utilitarian) value propositions more so than relationship-oriented (hedonic) value propositions. Research limitations/implications The sample consisted on digital natives. Additional age cohorts are needed. Practical implications As financial institutions redirect their business models toward digital self-service technology channels, the need for customers to feel comfortable while interacting with an AI agent will be critical for enhancing the customer experience and firm performance. Originality/value The authors extend the service-dominant logic (SDL) literature by showing that value co-creation is a function of both firms’ technologies and consumers’ value-in-use, a finding that appears to be unique in the literature. The authors advance the digital transformation literature by evaluating AIMB as an interactive process that requires an understanding of key technology constructs, including perceptions of baseline service relationships, desired service configurations, security and safety issues and whether AI is useful for value co-creation. To the best of the authors’ knowledge, this is the first SDL framework that investigates interactive and structural relationships to explain value-in-use perceptions of AIMB.

Why wait? Impact of waiting lines on self-service technology use

2015 ◽  
Vol 27 (6) ◽  
pp. 1181-1197 ◽  
Author(s):  
Alinda Kokkinou ◽  
David A. Cranage
Keyword(s):  
Technology Use ◽  
Service Providers ◽  
The Self ◽  
Content Type ◽  
Service Employee ◽  
Binary Dependent Variable ◽  
Self Service ◽  
Self Service Technology ◽  
Number Of Customers ◽  
Waiting Lines

Purpose – The purpose of the present study is to examine the effect of waiting lines on customers’ decisions between using a self-service alternative and using a service employee. As self-service technologies are expensive and time-consuming to design and implement, service providers need to understand what drives customers to use them. Service operators have the most control over waiting lines and flexibility in expanding capacity, either by adding service employees or by adding self-service kiosks. Design/methodology/approach – The study used online scenario-based surveys following a 4 (number of customers waiting for the self-service technology) × 4 (number of customers waiting for the service employee) design. A binary dependent variable was used to record participants’ choice of service delivery alternative. Findings – Using logistic regression, the authors found that customers are increasingly motivated to use self-service technology as the waiting line for the service employee grows longer. This effect is influenced by perceived usefulness, anticipated quality of the self-service technology, need for interaction and technology anxiety. Research limitations/implications – This study should be replicated in a real-world setting where actual behavior, and not only intention, can be measured. Practical implications – The study provides guidance on how service providers can design their service to take advantage of the motivating effect of waiting lines on usage of self-service technology. Originality/value – The present study is the first to combine a scenario-based experiment with a binary dependent variable to isolate the impact of waiting lines on the choice between using a self-service technology and using a service employee. The use of the binary dependent variable overcomes the ambiguity of extrapolating from a continuous measure of intention to draw conclusions about behavior, a binary variable.

Service innovation and usage intention: a cross-market analysis

2015 ◽  
Vol 26 (3) ◽  
pp. 516-538 ◽  
Author(s):  
Yen-Ting Helena Chiu ◽  
Katharina Maria Hofer
Keyword(s):  
Social Influence ◽  
Emerging Market ◽  
Global Perspective ◽  
Content Type ◽  
Personal Innovativeness ◽  
Performance Expectancy ◽  
Use Of Technology ◽  
Self Service ◽  
Facilitating Conditions ◽  
Self Service Technology

Purpose – The purpose of this paper is to investigate market-contextual variations in consumers’ self-service technology (SST) usage intentions. Design/methodology/approach – Applications of the unified theory of acceptance and use of technology support the exploration of antecedents of usage intention for SSTs in two market contexts, through a survey among Taiwanese and Austrian college students. The cross-cultural nature of the study suggested the need for factor analyses to evaluate measurement equivalence. A Chow-Test confirmed structural stability, followed by regression analysis and independent samples t-tests to confirm the hypotheses. Findings – Substantial differences arise across market contexts that shape usage intentions. In a collectivistic, emerging market context (Taiwan), performance expectancy, effort expectancy, social influence, facilitating conditions, and personal innovativeness significantly influence usage intention. In an individualistic, advanced market context (Austria), only performance expectancy and social influence have significant impacts on usage intention. Personal innovativeness moderates only the relationship between performance expectancy and usage intention. Practical implications – The findings suggest that usage intention is subject to the market environment in which the technology is introduced. Consumers are influenced by the local and institutional-cultural environment. Originality/value – Globalization has accelerated the launch of retail services innovations. It is imperative to understand consumers’ usage intentions from a global perspective. This study advances SST research by analyzing and comparing adoption behavior in an advanced vs emerging market setting.

Aging and the preference for the human touch

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruomeng Wu ◽  
Meng Liu ◽  
Frank Kardes
Keyword(s):  
Human Service ◽  
Design Methodology ◽  
Service Providers ◽  
Experimental Studies ◽  
Content Type ◽  
Self Service ◽  
Self Service Technology ◽  
Willingness To Use ◽  
Effect Of Age ◽  
Practical Implications

Purpose This paper aims to investigate the effect of chronological age on the likelihood to choose a service provider with technological machines versus humans in the context of services. Design/methodology/approach Two experimental studies were used to collect data. In both experiments, scripts were devised to depict a food ordering situation. The studies, each of which represents two between-subject conditions, were presented to a total of 312 participants. Findings The results of studies show that as age increases, consumers show a higher visit likelihood with human servers as compared to self-ordering machines. This effect emerges because as age increases, people find it more comfortable and convenient to order from human servers. Nevertheless, when a self-ordering machine is the only option, older and younger people find it equally comfortable and convenient. Research limitations/implications This research indicates that as age increases, consumers tend to choose human servers. However, age does not impact willingness to use technology when human service is not available. A limitation of our research is that we look at food ordering contexts only. Another limitation is that most participants were between 18 and 60 years of age. Practical implications With a better understanding of the effect of age on preference for service types and the reason behind it, this research helps implement and manage service technologies that may elicit favorable judgments and decisions from consumers. Originality/value It demonstrates how, when and why age affects the intention to visit service providers that adopt self-service technologies. This research suggests that as age increases, consumers like human service better, but they do not resist self-service technology.

Giving back the “self” in self service: customer preferences in self-service failure recovery

2017 ◽  
Vol 31 (6) ◽  
pp. 604-617 ◽  
Author(s):  
Joel E. Collier ◽  
Michael Breazeale ◽  
Allyn White
Keyword(s):  
Service Failure ◽  
Optimal Recovery ◽  
Failure Recovery ◽  
The Self ◽  
Self Monitoring ◽  
Content Type ◽  
Customer Preferences ◽  
The Social ◽  
Self Service ◽  
Self Service Technology

Purpose When a failure occurs with a self-service technology (SST), do customers want to give back the “self” in self-service? The authors explore employee’s role in a self-service failure and how the presence of other customers can change that role. Specifically, they examine how the self-monitoring of customers behavior during a failure can change recovery preferences. Design/methodology/approach Data were collected from customers of a movie self-service ticket kiosk and a grocery self-checkout. Three experiments were conducted. Findings Results from these studies find that customers want employees to fully take over a transaction after a failure if it takes place in isolation. If other patrons are present or waiting in line, then customers prefer the employee to simply correct the problem and let them complete the transaction. Finally, the servicescape along with the presence of other customers in a self-service area can induce self-monitoring behaviors and alter optimal recovery strategies. Research limitations/implications These findings have implications on the appropriate amount of recovery assistance customers need in a self-service experience. Practical implications This research reveals the social and functional complexities associated with executing a satisfactory SST failure recovery, particularly with respect to determining the extent to which the employee or customer should control the attempt. Originality/value This is the first study to examine the employee’s role in a self-service failure. While other studies have examined customers’ intentions in a self-service failure, authors examine how a service provider can assist in the recovery of a self-service failure.

Autonomous vehicles: a review of the ethical, social and economic implications of the AI revolution

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shweta Banerjee
Keyword(s):  
Artificial Intelligence ◽  
Autonomous Vehicles ◽  
Design Methodology ◽  
Technological Advancement ◽  
Economic Implications ◽  
Content Type ◽  
The Public ◽  
Autonomous Cars ◽  
The Subject ◽  
Practical Implications

PurposeThere are ethical, legal, social and economic arguments surrounding the subject of autonomous vehicles. This paper aims to discuss some of the arguments to communicate one of the current issues in the rising field of artificial intelligence.Design/methodology/approachMaking use of widely available literature that the author has read and summarised showcasing her viewpoints, the author shows that technology is progressing every day. Artificial intelligence and machine learning are at the forefront of technological advancement today. The manufacture and innovation of new machines have revolutionised our lives and resulted in a world where we are becoming increasingly dependent on artificial intelligence.FindingsTechnology might appear to be getting out of hand, but it can be effectively used to transform lives and convenience.Research limitations/implicationsFrom robotics to autonomous vehicles, countless technologies have and will continue to make the lives of individuals much easier. But, with these advancements also comes something called “future shock”.Practical implicationsFuture shock is the state of being unable to keep up with rapid social or technological change. As a result, the topic of artificial intelligence, and thus autonomous cars, is highly debated.Social implicationsThe study will be of interest to researchers, academics and the public in general. It will encourage further thinking.Originality/valueThis is an original piece of writing informed by reading several current pieces. The study has not been submitted elsewhere.

Exploring the boundaries of rhetoric

2014 ◽  
Vol 27 (5) ◽  
pp. 793-806 ◽  
Author(s):  
Eduard Bonet
Keyword(s):  
Social Sciences ◽  
Conceptual Framework ◽  
Design Methodology ◽  
The Self ◽  
History Of Rhetoric ◽  
Content Type ◽  
History Of ◽  
Practical Development ◽  
The Subject

Purpose – The purpose of this paper is to examine how the boundaries of rhetoric have excluded important theoretical and practical subjects and how these subjects are recuperated and extended since the twentieth century. Its purpose is to foster the awareness on emerging new trends of rhetoric. Design/methodology/approach – The methodology is based on an interpretation of the history of rhetoric and on the construction of a conceptual framework of the rhetoric of judgment, which is introduced in this paper. Findings – On the subject of the extension of rhetoric from public speeches to any kinds of persuasive situations, the paper emphasizes some stimulating relationships between the theory of communication and rhetoric. On the exclusion and recuperation of the subject of rhetorical arguments, it presents the changing relationships between rhetoric and dialectics and emphasizes the role of rhetoric in scientific research. On the introduction of rhetoric of judgment and meanings it creates a conceptual framework based on a re-examination of the concept of judgment and the phenomenological foundations of the interpretative methods of social sciences by Alfred Schutz, relating them to symbolic interactionism and theories of the self. Originality/value – The study on the changing boundaries of rhetoric and the introduction of the rhetoric of judgment offers a new view on the present theoretical and practical development of rhetoric, which opens new subjects of research and new fields of applications.

Artificial intelligence in financial services: a qualitative research to discover robo-advisory services

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ankita Bhatia ◽  
Arti Chandani ◽  
Rizwana Atiq ◽  
Mita Mehta ◽  
Rajiv Divekar
Keyword(s):  
Artificial Intelligence ◽  
Stock Market ◽  
Financial Services ◽  
Future Research ◽  
Individual Investors ◽  
Content Type ◽  
Advisory Services ◽  
Wealth Management ◽  
Management Scenario ◽  
Indian Stock Market

Purpose The purpose of this study is to gauge the awareness and perception of Indian individual investors about a new fintech innovation known as robo-advisors in the wealth management scenario. Robo-advisors are comprehensive automated online advisory platforms that help investors in managing wealth by recommending portfolio allocations, which are based on certain algorithms. Design/methodology/approach This is a phenomenological qualitative study that used five focussed group discussions to gather the stipulated information. Purposive sampling was used and the sample comprised investors who actively invest in the Indian stock market. A semi-structured questionnaire and homogeneous discussions were used for this study. Discussion time for all the groups was 203 min. One of the authors moderated the discussions and translated the audio recordings verbatim. Subsequently, content analysis was carried out by using the NVIVO 12 software (QSR International) to derive different themes. Findings Factors such as cost-effectiveness, trust, data security, behavioural biases and sentiments of the investors were observed as crucial points which significantly impacted the perception of the investors. Furthermore, several suggestions on different ways to enhance the awareness levels of investors were brought up by the participants during the discussions. It was observed that some investors perceive robo-advisors as only an alternative for fund/wealth managers/brokers for quantitative analysis. Also, they strongly believe that human intervention is necessary to gauge the emotions of the investors. Hence, at present, robo-advisors for the Indian stock market, act only as a supplementary service rather than a substitute for financial advisors. Research limitations/implications Due to the explorative nature of the study and limited participants, the findings of the study cannot be generalised to the overall population. Future research is imperative to study the dynamic nature of artificial intelligence (AI) theories and investigate whether they are able to capture the sentiments of individual investors and human sentiments impacting the market. Practical implications This study gives an insight into the awareness, perception and opinion of the investors about robo-advisory services. From a managerial perspective, the findings suggest that additional attention needs to be devoted to the adoption and inculcation of AI and machine learning theories while building algorithms or logic to come up with effective models. Many investors expressed discontent with the current design of risk profiles of the investors. This helps to provide feedback for developers and designers of robo-advisors to include advanced and detailed programming to be able to do risk profiling in a more comprehensive and precise manner. Social implications In the future, robo-advisors will change the wealth management scenario. It is well-established that data is the new oil for all businesses in the present times. Technologies such as robo-advisor, need to evolve further in terms of predicting unstructured data, improvising qualitative analysis techniques to include the ability to gauge emotions of investors and markets in real-time. Additionally, the behavioural biases of both the programmers and the investors need to be taken care of simultaneously while designing these automated decision support systems. Originality/value This study fulfils an identified gap in the literature regarding the investors’ perception of new fintech innovation, that is, robo-advisors. It also clarifies the confusion about the awareness level of robo-advisors amongst Indian individual investors by examining their attitudes and by suggesting innovations for future research. To the best of the authors’ knowledge, this study is the first to investigate the awareness, perception and attitudes of individual investors towards robo-advisors.

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