Ethnographic Study: Managing Self-Service Checkouts in Four Major Supermarkets in UK - Essay Example

? Ethnographic Study: Managing Self-Service Checkouts in Four Major Supermarkets in UK Total Number of Words: 3,002 Table of Contents I. Introduction……………………………………………………………………...... 3 a. Purpose of the Research Study ……………………………………………. 4 b. Research Objectives ………………………………………………………. 4 II. Literature Review …………………………………………………………………. 5 a. Concept and Barriers behind the Use of Self-Checkout Counters ……….. 5 b. Advantages of Using Self-Checkouts in UK Grocery Stores …………….. 6 c. Disadvantages of Using Self-Checkouts in UK Grocery Stores …………. 7 III. Research Methodology …………………………………………………………… 8 a. Research Study Design …………………………………………………… 8 b. Research Site, Population, and Sample Size ……………………………… 9 c. Research Ethics ……………………………………………………………. 10 IV. Research Findings and Analysis ………………………………………………….. 11 V. Conclusion and Recommendations ……………………………………………….. 13 References ………………………………………………………………………………… 14 Appendix I – Research Survey Questionnaire ……………………………………………. 17 Appendix II – Summary of Quantitative Research Survey Results ………………………. 18 Appendix III – Summary of Qualitative Research Survey Results ……………………….. 19 Chapter I – Introduction With a total market shares of 76.4%, the BBC news has recently reported that the supermarket industry in UK is dominated by four major grocery retailers such as Tesco (29.9%), Asda (17.5%), Sainsbury’s (16.7%), and Morrisons (12.3%) (BBC News 2012). These four major grocery retailers are selling homogenous food and non-food products. Therefore, the only way to capture a bigger market share is to offer the lowest possible price to its target consumers. Due to tight market competition, price-war among these four major grocery retailers has become the name of the game (BBC News 2012). To cut down on unnecessary fixed administrative costs, a lot of multinational companies had been investing on self-service technologies (Meuter, Ostrom and Roundtree et al. 2000). In UK, grocery retailers such as in the case of Tesco, Asda, Sainsbury’s, and Morrisons invested a large sum of money on its “self-checkouts” technology (Best 2011). According to Best (2011), implementing the use of self-checkouts in large-scale grocery store outlets can save a lot of money on the part of Tesco, Asda, Sainsbury’s, and Morrisons. Most of the existing literature with regards to self-checkouts in grocery stores is focused on determining ways on how the general public would willingly accept the use of self-service technology (Curran, Meuter and Suprenant 2003; Dabholkar and Bagozzi 2002). Very few studies have focused on determining the disadvantages of self-checkouts in grocery stores (Mendat and Mayhorn 2007). Since customer’s loyalty is crucial to the success of large-scale grocery retailers, this study will purposely examine the customers’ point-of-views and personal experiences with regards to the use of self-checkout counters in large-scale grocery store outlets. Anand (2011) reported that each unit of self-checkout system would cost between $17,000 to $20,000. Considering the high cost of investing on self-checkout system, it is necessary to consider the customers’ personal experiences with regards to the use of this particular cost-cutting strategy. To give the readers a better idea of this subject matter, the concept and barriers behind the use of self-checkout counters will first be provided followed by discussing its advantages and disadvantages. Aside from the use of pure observational research method, a research survey study will be conducted to learn more about the customers’ in-depth point-of-views with regards to the advantages and disadvantages of self-checkouts in UK grocery store outlets. Purpose of the Research Study The purpose of this study is to conduct an ethnographic study with regards to the customers’ personal experiences when using the self-service check-outs counters in four (4) major UK-based supermarkets such as Asda, Morrisons, Tesco, and Sainsburrys. Research Objectives The following research objectives will be considered throughout this study: 1. To be able to discuss the basic concept of a self-checkout system; 2. To identify potential barriers that could prevent consumers from using a self-checkout system; 3. To determine the advantages and disadvantages of using a self-checkout counter; 4. To observe the attitude and behaviour of Tesco’s, Asda’s, Sainsbury’s, and Morrisons’ target consumers when using the self-checkout system; and 5. To determine how the target consumers of Tesco, Asda, Sainsbury’s, and Morrisons perceive the use of self-checkout system. Chapter II – Literature Review Concept and Barriers behind the Use of Self-Checkouts Counters As part of creating business-to-customer (B2C) environment, most of the large-scale grocery retailers in UK invested on automated identification technology (i.e. RFID) to establish self-checkout counters (Smith 2005). Basically, the main purpose of offering self-service technologies is to enable the end-consumers take advantage of service without the need of direct assistance from corporate employees who are providing customer service (Meuter, Ostrom and Roundtree et al. 2000). Using this technology, consumers are expected to either scan the barcode of products they intend to purchase or manually enter the product details into the checkout machines before paying their bills using a credit card, a debit card and/or currency notes and coins (Khurana 2010, p. 37; Schliewe and Pazoldt 2010). After paying the grocery items, customers who prefer a self-checkout counter are expected to pack their individually purchased items on their own (Schliewe and Pazoldt 2010). Investing on self-checkout counters is time consuming and expensive. To make the investment on self-checkout counters successful, Curran, Meuter and Surprenant (2003) strongly suggest the need to have a clear understanding behind all factors that could affect the consumers’ acceptance and/or avoidance before heavily investing on self-checkout technologies. By increasing the knowledge with regards to the barriers behind the use of self-checkout counters, the top management of these four (4) major grocery retailers in UK would know how, when, and what strategies to use in order to make the end-consumers become more comfortable with the use of self-checkout counters. According to Lee et al. (2010), consumers’ acceptance and intention to use the self-checkout counters is highly dependent on consumer traits (i.e. desire for social interaction, fear of using technology, and innovativeness of technology). Other studies mentioned that the presence of technology anxiety, social pressure, and self-efficacy could either increase or decrease consumers’ preferences and decision to use the self-service check-out counters (Nysveen et al. 2005; Meuter, Bitner and Ostrom et al. 2005; Meuter, Ostrom and Bitner et al. 2003). In case consumers have fear of using high tech gadgets like self-checkout technologies, it is unlikely for this group of consumers to show positive attitude with regards to the use of self-service check-out counters (Oyedele and Simpson 2007). Eventually, the overall general public’s acceptance and positive experience with regards to the use of self-checkout technologies can affect the frequency of using self-checkout counters in retail grocery stores (Smith 2005). Advantages of Using Self-Checkouts in UK Grocery Stores Graham Heald – the director of Waitrose revealed that the use of self-checkout technology can “give people an alternative payment option which is fast and easy-to-use” (Best 2011). By providing between 2 to 6 self-checkout counters as compared to a traditional cashier, Schliewe and Pazoldt (2010) revealed that the customers can benefit from a reduced checkout time. Within this context, it is possible that the provision of self-checkout counters can promote the development of a smooth flow on retail consumers’ entry to checkout process. In general, keeping consumers busy will reduce the risk of getting the customers impatient with long queue. Aside from making consumers busy scanning their purchased items, Khurana (2010, p. 37) revealed that the use of self-checkout technology can reduce the need for human resources. In line with this, several studies mentioned that the provision of self-checkout counters will enable the grocery retailers save as much as 25% of its fixed administrative cost (Schliewe and Pazoldt 2010). Disadvantages of Using Self-Checkouts in UK Grocery Stores With regards to the use of self check-out lane in some branches of Lucky Supermarkets in US, Brodkin and Technica (2011) has recently reported that “there have been approximately 80 employee and customer reports of either compromised account data or attempts to access account data”. It means that the use of self-checkout counters in grocery retail stores could increase the customers’ risk of becoming a victim of pilferage, identity theft and credit card fraud (Khurana 2010, p. 37). In some cases, Belter (2012, p. 27) revealed that the use of self-checkout devices can result to shoplifting. According to Belter (2012, p. 27), “time spent with the use of self-checkout counters is highly dependent on the consumers familiarity with the device”. Since there will always be some consumers who do not feel comfortable with the use of self-checkout equipments (Lee et al. 2010; Meuter, Ostrom and Bitner et al. 2003), requiring the use of self-checkout counters can only lead to the development of long queues. In case the product being purchased by the consumers is unlabelled or wrongly labelled, the use of self-checkout counters can only increase the customers’ frustration (Khurana 2010, p. 37). Furthermore, Mendat and Mayhorn (2007) mentioned that consumers who had tried using a self-checkout system often complain on issues related to poor barcode scanning and long queue because of customers who are unfamiliar with the use of self-checkout system. In general, consumers of grocery food products are sensitive not only with the market prices of goods but also the quality of customer service they receive from the grocery retailers (Asda 2012; Tesco 2012; Morrisons 2007). Due to the absence of human interaction, excessive use of self-checkout counters will eventually make the shopping experience of the consumers less personal (Khurana 2010, p. 37). Chapter III – Research Methodology Research Study Design To learn more about the personal point-of-views of the public consumers when purchasing grocery items using the self-checkout counters at Tesco, Asda, Sainsbury’s, and Morrisons, this study combined the use of ‘explanatory non-experimental research’ survey questionnaires and pure observational method. Basically, the rationale for combining these two research methods is to increase the accuracy and validity of the actual research findings. In general, the ‘explanatory non-experimental research’ is a type of quantitative research survey questions that uses ‘yes’ or ‘no’ questions followed by asking ‘how’, ‘what’, or ‘why’ (Johnson 2000). Basically, the main objective for asking ‘how’, ‘what’ or ‘why’ question is to enable the researcher gather a more descriptive explanation behind the previous ‘yes’ or ‘no’ questions. (See Appendix I – Research Survey Questionnaire on page 17) A pure observational research method is a research technique that is focused on observing the body language and gestural cues of the public consumers (Angrosino 2000, p. 161). Basically, conducting a pure observational research method is necessary to enable the researcher gather observational findings with regards to the real attitude and behaviour that each of the public consumers are projecting when using self-checkout counters when paying for their purchased grocery items. As compared to the process of conducting a quantitative and qualitative research survey study, it is more difficult to conduct a pure observational research study since the researcher is required to observe and analyze the actual reaction, attitude and behaviour that each of the public consumers are showing while using the self-checkout counters. To ensure that the researcher will conduct a naturalistic observation, Denzin and Lincoln (2005, p. 730) clearly stated that the researcher “should not interfere with the people or activities under observation”. To avoid calling the attention of the subjects, the researcher intentionally stood at least one (1) meter away from the self-checkout counters. To avoid the risk of losing important details, Dewalt and Dewalt (2002, p. 17) strongly suggest the need to avoid too much reliance on memory. Instead, the researcher should be patient enough to record on a piece of paper all details that has been observed from each consumer (i.e. date, time, positive or negative attitude and behaviour, and reasons for showing positive or negative attitude and behaviour, etc.). By doing so, the researcher can increase the validity of pure observational research findings. Research Site, Population, and Sample Size Between nth of March up to the nth of April 2012, the researcher visited different branches of Tesco, Asda, Sainsbury’s, and Morrisons. Due to hectic class schedules, the researcher decided to conduct both the observation and research survey study strictly on weekends and at different time of the day. A total of 100 research survey participants will be invited to participate in the research survey study. Regardless of age, gender, and nationality, qualified research survey participants include the public consumers who purchased food and/or non-food items from Tesco, Asda, Sainsbury’s, or Morrisons. To avoid gathering a bias research study result, the researcher will intentionally distribute 50 questionnaires to customers who will use the traditional cashier counter and the other half to customers who prefer the self-checkout counters. Regardless of the sample size, the researcher will spend at least a couple of hours each weekend to conduct the actual observational study. Research Ethics As compared to a research survey study, conducting observational studies has more ethical implications due to the fact that this method violates the law of informed consent (Angrosino 2000). Therefore, it is crucial on the part of the researcher to ensure that the public consumers who will be the subject of pure observational study is protected from any form of physical, psychological or emotional harm. According to Israel and Hay (2006, p. 90), disclosing a confidential information is a breach of confidentiality. To avoid legal sanctions, the researcher will not reveal the personal information (i.e. name, address, contact number) of the research survey respondents to the public (Biggs 2010, p. 101). Rather than interpreting the actual research findings per person, the researcher will purposely analyze the gathered research information using a more generalized analysis approach. Furthermore, it is unethical on the part of the researcher to manipulate the research study results (Shrader-Frechette 1994, p. 86). To avoid falsifying and/or misrepresenting the primary research findings, the researcher will interpret the primary data together with the literature review. Chapter IV – Research Findings and Analysis Regardless of age, gender, and nationality, a total of 100 research survey respondents participated in the research survey study. In general, the main reason behind the introduction of self-checkouts is to improve service reliability and the ability to deliver the same service to every customer. When asked whether or not they prefer to use a self-checkout counter over a traditional cashier, majority with 52% of the total research survey respondents said ‘no’. Only 32% of the total researcher survey respondents revealed that they prefer to scan and pack their own purchased items rather than dealing with a cashier. When asked why most of the research survey respondents prefer the use of a traditional cashier rather than the self-checkout counters, one of the research survey respondents stated that “grocery retailers should provide 100% service to their customers”. Aside from being accustomed and prefer to meet and speak to a cashier when paying their grocery bills, one of the research survey respondent or someone close to them was a victim of credit card fraud after using a self-checkout counter. Others fear that continuously promoting self-checkout counters would make more people lose their job as counter attendants. With regards to waiting time, majority with 69% of the total research survey respondents revealed that they do not agree that using a self-checkout counter could cut down their waiting time when paying for the goods they purchase. In fact, 19 out of 100 or 19% of the total research survey respondents have tried experiencing problems when using the self-checkout counters. Among the common problems include: technical problems with the scanning devices, false accusation of shoplifting, bagging issues, slow computers, payment problem such as billing twice, and the absence of self-checkout attendant to assist the customers’ problem. The observational findings are quite similar with the descriptive explanations that were provided by some of the research survey respondents. After observing the attitude and behaviour of public consumers when using the self-checkout counters at Tesco, Asda, Sainsbury’s, and Morrisons, issues related to bagging is one of the most common problems that most customers are complaining when using the self-checkout counters. Aside from running out of bagging supply, there was one case in Tesco wherein the available bags were smaller than what the customer had purchased from them. In most cases, the kind of product being purchased also affects the customer convenience offered by the self-checkout counters. Furthermore, slow computers can cause the fast moving customers to wait for a few seconds while the animation completes before serving the next customer. Aside from making the customers feel frustrated because of slow computers, problems related to barcode scanners were also common. In case the scanner cannot read the barcode, the self-checkout counter attendant will have to manually scan the purchased item(s). The use of self-checkout counters can make the public consumers look funny. One of the funniest incidents that I noticed when using the self-checkout counters is that the self-checkout devices are having trouble scanning items that weigh less than a gram. For instance, buying light weight items (i.e. powdered spices like cumin) can trigger wrong signals on the weighing machine and bagging area. After the lady scanned, weighed, and bagged the cumin, the machine instructed the customer to “please remove the purchased item from the bagging area”. When the lady removed the cumin from the bag, she was about to weigh some apples when the scale was still recognizing the weight of the cumin. Eventually, the machine announced that the self-checkout counter assistant has already been notified to assist her. Chapter V – Conclusion and Recommendations The provision of self-checkout counters can make Tesco, Asda, Sainsbury’s, and Morrisons cut down its fixed monthly administrative cost by up to 25% savings (Schliewe and Pazoldt 2010). Since customer satisfaction and loyalty is crucial to the business success of these companies, it is necessary to examine the customers’ point-of-views with regards to their personal experiences when using self-checkout counters. Tesco, Asda, Sainsbury’s, and Morrisons should listen to consumers’ personal experiences when using the self-checkout counters. By listening to the major concerns of the public consumers, the top management of these four (4) major UK grocery retailers will have the opportunity to develop new strategies that will effectively solve customers’ difficulties when using the self-checkout technologies. Eventually, grocery retailers will not only contribute to the development of positive customers’ experiences and feedback but also create a win-win situation on the part of the grocery retailers and the public consumers. Supermarkets will never completely get rid of manned tills. Although some people prefer the use of self-checkout counters, it will remain a fact that not all people are open to the use this technology. Therefore, grocery retailers should give the customers the choice between a self-checkout counter and a traditional cashier. To minimize errors using the self-checkout counters, grocery retailers should provide clear signs on how to use these electronic devices. When designing a hybrid system that combines the use of staffed checkouts and automated ones, grocery retailers should study the preferences of its existing customers. Since it is more difficult to attend to customers’ errors on a self-checkout counter, this study high recommends the need to iron out the kinks at manned cash registers before trying to open self-checkout counters. References Anand, A. (2011, July 22). msnbc. Welcome valued customer ... to more self-checkouts. Some shoppers hate them, but others love them and they help retailers. [Online] Available at: http://www.msnbc.msn.com/id/43729757/ns/business-retail/t/welcome-valued-customer-more-self-checkouts/#.T4ibdHlDCSo [Accessed 14 April 2012]. Angrosino, M. (2000). Sage Publication. Chapter 5 - Recontextualizing observation. Ethnography, Pedagogy, and the Prospects for a Progressive Political Agenda. In Angrosino and Perez (eds). [Online] Available at: http://www.sagepub.com/upm-data/17664_Chapter5.pdf [Accessed 14 April 2012]. Asda (2012). Contact Us. [Online] Available at: http://groceries.asda.com/asda-estore/help/getintouchcontainer.jsp [Accessed 14 April 2012]. BBC News. 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Appendix I – Research Survey Questionnaire 1 Do you prefer a self-checkout counter over a traditional cashier? ___ Yes ___ No; Why? __________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ 2 Based on your personal experience, do you feel that the use of self-checkout counter reduces the waiting time before you can pay your purchased items? ___ Yes___ No 3 Do you prefer scan and pack your own purchased items without having the need to deal with a casher? ___ Yes ___ No 4 Have you ever experience problem using the self-checkout counters? ___ Yes ___ No If yes, what kind of technical or non-technical problem did you encounter? __________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ 5 Given a choice, will you use a traditional cashier than a self-checkout counter? ___ Yes ___ No *** Thank you! *** Appendix II – Summary of Quantitative Research Survey Results Question Frequency Percentage 1. Do you prefer a self-checkout counter over a traditional cashier? Yes No 48 52 48 52 2. Based on your personal experience, do you feel that the use of self-checkout counter reduces the waiting time before you can pay your purchased items? Yes No 31 69 31 69 3. Do you prefer scan and pack your own purchased items without having the need to deal with a casher? Yes No 32 68 32 68 4. Have you ever experience problem using the self-checkout counters? Yes No 19 81 19 81 5. Given a choice, will you use a traditional cashier than a self-checkout counter? Yes No 52 48 52 48 Appendix III – Summary of Qualitative Research Survey Results Question 1. Do you prefer a self-checkout counter over a traditional cashier? Why? Yes I find self-checkout counters to be reliable. I don’t like talking to a cashier. I prefer scanning my own purchased items. I enjoy the use of scanning devices. I am deaf and mute. It saves me a lot of effort to do my own thing. I get more sense of control using the self-checkout counters. I don’t like the idea of waiting for a cashier attendant to receive my payment during their break-time. It is easy and fun to use a self-checkout counter. Convenience. I hate the idea of having to meet offensive cashier attendants. Each day I face too much stress dealing with people at work. I prefer less human interaction whenever I am away from my work station. Customers who are accustomed with using their coupons always see to it that they meet a cashier. I don’t like waiting for them to finish their transaction. The queue line in a traditional cashier is usually longer due to price checks and other issues. Traditional cashiers often have long queues. Using self-checkout counters, I can free myself from cashiers with bad attitude. I don’t like interacting with people. Note: Only 16 out of 48 provided a descriptive answer. No Grocery retailers should provide 100% service. I pay for my purchased items. Why do I need to stress myself out packing the products I bought? I had a bad experience using a self-checkout counter. A close friend of mine has been a victim of credit card fraud after using a self-checkout device. I prefer the traditional way of paying my purchased items. I am very much accustomed with the use of a traditional cashier. I am not into the use of high tech devices. I will definitely have trouble using a self-checkout counter. Using a self-checkout counter is worst than having to deal with an unfriendly checkout attendant. I have had problems using a self-checkout counter. I feel frustrated each time I get in trouble using a self-checkout device. I don’t like the idea that hundreds of checkout attendants will lose their job because of the use of self-checkout devices. Self-checkout counters will only make grocery retailers richer. Through cashiers and checkout attendants, grocery retailers should maintain good relationship with the customers. I like the feeling when a cashier attendant packs the goods I purchased for me. It is a good idea to invest on self-checkout devices especially if the store is operating on a 24/7 schedule. However, the use of this technology can also be dehumanizing. Faulty scanning devices would mean calling the attention of a cashier attendant. Might as well stick to the service of a real cashier attendant. The absence of a cashier attendant means poor customer service. Sometimes the barcode scanner in self-checkout counter is not working. Using the self-checkout counters could sometimes make me think twice whether or not I scanned all items correctly. Sometimes the available bags in self-checkout counters are not big enough to bag big items. I prefer to speak to a cashier when I pay my grocery items. Note: Only 21 out of 52 provided a descriptive answer. 2. Have you ever experience problem using the self-checkout counters? If yes, what kind of technical or non-technical problem did you encounter? I have experienced encountering a scanning device that doesn’t work. After paying for my purchased items, I noticed that the self-checkout counter ran out of bags. I had problems using the scanning devices when I bought I remember one time I was in a XXX grocery store in XXX, one of the scanners accused me of shoplifting. Believe me, that incident has caught me off-guard. I don’t know what to say. Problem scanning a frozen item. I swiped my credit card in a self-checkout counter. Since the card was declined, I re-swiped my credit card only to find out that I was billed twice. Issues related to bagging. Scanner does not recognize the items I wanted to purchase. I have experienced having problem with a self-checkout counter without any attendant to assist me with my problem. Bag struggling among the customers. There was one time I tried using the self-checkout counter but the machine was not calibrated properly. Computer is slow – some fast customers have wait a few seconds while an animation completes before moving on Note: Only 18 out of 19 provided a descriptive answer. Read More