This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via Google Scholar Google Scholar Articles by Xue, M. Articles by Harker, P. T. Search for Related Content

Customer Efficiency, Channel Usage, and Firm Performance in Retail Banking

Operations and Strategic Management Department, The Wallace E. Carroll School of Management, Boston College, 350 Fulton Hall, 140 Commonwealth Avenue, Chestnut Hill, Massachusetts 02467
Operations and Information Management Department, The Wharton School, University of Pennsylvania, 571 John Huntsman Hall, Philadelphia, Pennsylvania 19104
Operations and Information Management Department, The Wharton School, University of Pennsylvania, 1000 SHDH, 3620 Locust Walk, Philadelphia, Pennsylvania 19104-6364
xueme{at}bc.edu
lhitt{at}wharton.upenn.edu
harker{at}wharton.upenn.edu

Innovations in technology and service design have increasingly enabled firms to incorporate self-service technology to augment or substitute for "traditional" employee-provided service channels. Although it is clear that self-service can reduce cost, less is known about how customers utilize self-service channels in a multichannel service delivery system and the resulting impact on firm performance. An important aspect of service operations is that customers are coproducers of the service. Thus, the performance of the delivery system and customers' use of service channels can be affected by customers' own efficiency or productivity in service coproduction (customer efficiency). In this paper, we utilize prior theoretical frameworks in service operations and economics to hypothesize relationships among customer characteristics (especially coproduction efficiency), channel utilization, and firm performance. We then test these hypotheses using panel data from a large retail bank. Overall, we find that higher customer efficiency in self-service channels is associated with greater profitability and has a complex relationship with customer retention and product utilization.

Key Words: service operations management; service delivery system; self-service technology (SST); service coproduction; customer efficiency
History: Received: April 15, 2005; accepted: July 26, 2006.