Examining Self-Checkout Systems & Customer Satisfaction at Tesco

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This dissertation investigates the influence of self-checkout systems (SCS) on customer satisfaction within Tesco supermarkets. The study employs a mixed-methods approach, including an online survey of 120 shoppers and semi-structured interviews with Tesco managers, to assess the effectiveness of SCS and understand customer and management perspectives. The research explores the evolution of SCS in response to technological advancements and competitive pressures, examining its impact on service quality, customer experience, and cost reduction. Findings reveal that younger demographics favor SCS due to its speed and convenience, while management views SCS as a long-term investment. The dissertation analyzes both quantitative and qualitative data, providing a comprehensive assessment of the advantages and disadvantages of SCS adoption within Tesco, and offers recommendations for enhancing customer satisfaction through the implementation of this technology.
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Dissertation
(Examining Self-Checkout System &
its Impact on Customer Satisfaction)
Tesco Case Study
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Table of Contents
CHAPTER 1: INTRODUCTION..................................................................................................1
1.1 Overview of research.........................................................................................................1
1.2 Rationale of the study........................................................................................................2
1.3 Research aim and objectives...........................................................................................2
1.4 Research questions...........................................................................................................2
CHAPTER 2: LITERATURE REVIEW.......................................................................................3
2.1 Overview..............................................................................................................................3
2.2 Self-checkout system.........................................................................................................3
2.3 Self-service information technology................................................................................4
2.4 Concept of customer satisfaction.....................................................................................5
2.5 Theories related to customer satisfaction.......................................................................7
2.6 Multi-channel self-service experience.............................................................................7
2.7 Impact of self-checkout system on customer satisfaction level..................................8
2.8 conclusion............................................................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY........................................................................10
3.1 Overview............................................................................................................................10
3.2 Research philosophy.......................................................................................................10
3.3 Research method.............................................................................................................10
3.3.1 Stage One......................................................................................................................11
3.3.2 Stage Two.....................................................................................................................12
3.4 Sampling method..............................................................................................................13
3.5 Data analysis.....................................................................................................................13
CHAPTER 4: RESULT AND ANALYSIS.................................................................................15
4.1 Overview............................................................................................................................15
4.2 Thematic analysis.............................................................................................................15
4.3 Quantitative Data Analysis..............................................................................................18
4.3.1 Descriptive analysis of the data....................................................................................18
4.3.2 Inferential data analysis................................................................................................20
CHAPTER 5: DISCUSSION AND CONCLUSION................................................................25
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5.1 Introduction........................................................................................................................25
5.1.1 Self-checkout system....................................................................................................25
5.1.2 Effectiveness of Self-checkout system.........................................................................25
5.1.3 Customers satisfaction..................................................................................................26
5.1.4 Effect of SCS on customer’s satisfaction level.............................................................26
5.1.5 Advantages and disadvantages of the use of SCS........................................................27
5.2 Conclusion.........................................................................................................................28
5.2.1 To examine the self-checkout system that is adopted by Tesco...................................28
5.2.2 To examine the current satisfaction level among customers of TESCO......................29
5.3 Recommendations...........................................................................................................29
REFERENCES............................................................................................................................31
APPENDIX...................................................................................................................................34
A. Semi-structured interview.................................................................................................34
B. Sample of the online survey.............................................................................................35
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List of Figures
Figure 1:Age group of the respondents...................................................................................18
Figure 2: Ease to use the SCS.................................................................................................19
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ABSTRACT
Self-checkout systems are rapidly changing the way supermarkets make
transactions with their customers. Supermarkets have started adopting SCS as a
mechanism to reduce cost as well as provide quality customer service. The
process transforms customers into co-producers. This paper examines if self-checkout
system is a reliable mechanism for improvement in customer satisfaction within Tesco.
The study adopts a multiple methods approach by initially using an online survey
of 120 supermarket shoppers for empirical research. A semi-structured interview was
conducted on the managers of TESCO with an aim to identify the effectiveness of self-
checkout systems, as well as identifying management’s view of customer behaviour.
Findings from the research suggest that Self-Checkout Systems are very
advantageous to supermarket. The online survey revealed that people of young age
prefer to use SCS compared to older age groups. It also identified speed of service and
convenience as major factors that affect customer satisfaction. The Semi-structured
interview also revealed that management views SCS as a long-term investment, which
in the long runs will result in cost reduction. Data from Tesco and NCR showcase that
SCS adoption is on the rise and that customers are more than willing to engage with the
technology, with Tesco already receiving benefits such as increased revenue and high
customer flow.
Key words: Self-checkout system, Service Quality, Customer Satisfaction, Information
Technology.
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CHAPTER 1: INTRODUCTION
1.1 Overview of research
In today’s era, there are rapid advancements in technology and increased global
competition. This kind of competitive environment has led retailers to develop new
services and machinery in order to reduce cost, so that customer satisfaction can be
enhanced. Supermarket chains have chosen to employ Self-Checkout Systems (SCS)
in order to reduce the cost and improve customer experience, while also trying to
resolve the issues which are faced by industries at the time of adopting new
technological advancements in the place of traditional systems (Hernon and Altman,
2010). SCS has also become the prime cause of erosion of human capital, need for
fewer men on the jobs and spiked supermarket redundancies (Demirci Orel and Kara,
2014).
Customers are now frequently using Self-Checkout Machines when visiting their
local retail stores. Retail shoppers have become dissatisfied and disillusioned with the
long wait times they have to encounter whilst waiting to purchase items from their local
stores, with cashier staff even relaying the burden of packing the goods purchased onto
customers. (Lee and et. al., 2010). This all results in poor customer services leading to
the possible low amount of purchases by displeased customers. Self-Checkout System
(SCS) is a self-service technology aimed at addressing these problems whereby
customers can skip long queues and make quick easy purchases via a computerised
interface (Kallweit, Spreer and Toporowski, 2014).
The present report is based on Tesco, which performs its operations in
supermarket or grocery. They are offering their services throughout England so their
business model is suitable for this study (Orel and Kara, 2014). It is the third largest
retailer based on their profits and revenues. They have their outlets in approx. 12
countries and listed on London Stock exchange. Therefore, the firm has a strong
customer base. Supermarkets have adopted the use of Self-Checkout Systems to
reduce cost and increase customer service. The purpose of this study is to verify
whether the use of self-checkout systems can actually result in improving customer
satisfaction in a more efficient or valuable manner as compared to the traditional
method where manned checkout systems were used.
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1.2 Rationale of the study
What is the research issue?
Tesco has rapidly been adopting self-checkout technology in order to improve
customer satisfaction and speed of service. The current research is focused on whether
self-checkout systems improve satisfaction level of customers.
Why it is an issue?
The issue has been arising due to the changing environment and the changing
requirements of people. In the competitive world, an enterprise has to adopt such kind
of innovation so that they can achieve their competitive advantage.
Why it is an issue now?
Now, the issue is arising due to high competition in the market as each and every
firm is performing better so that they can become more successful.
What could this research shed light on?
The present study is focused on whether self-checkout systems affects customer
satisfaction. By conducting this analysis, researchers will be able to achieve the
specified research aim and objectives.
1.3 Research aim and objectives
Aim: To examine the self-checkout system of Tesco and its impact on customer
satisfaction - A Case study on Tesco
Research objectives: The researcher has formed the following objectives so that
the current study can be conducted in a concise manner. The objectives are as follows:
ï‚· To examine the self-checkout system which is adopted by Tesco
ï‚· To examine the current satisfaction level among customers of TESCO
1.4 Research questions
These questions will allow a suitable evaluation to be performed in an effective
manner so that the ways in which customer satisfaction level can be enhanced through
self-checkout systems are identified. These are stated below:
Q1. What is the self-checkout system?
Q2. Does self-checkout system improve consumer satisfaction level?
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CHAPTER 2: LITERATURE REVIEW
2.1 Overview
Different literatures and past studies need to be researched in order to create a
foundation of knowledge related to the field of study. For this, information has been
extracted from secondary resources such as books, journals, past research papers, the
Internet and newspapers. This chapter seeks to explore the previous research on self-
checkout systems as well as identify existing themes and research gaps. The literature
review would also help to supplement the discussions in this dissertation. Through this,
a valid and reliable outcome can be drawn. Essentially, this section needs to be built
across the aim and objectives of the dissertation.
2.2 Self-checkout system
NCR’s (national cash register) self-checkout systems are introduced to offer
customers more control, convenience and a speedier checkout option (Beck, 2011).
These machines are introduced so that people can process their purchases in an
effective manner. This is an alternative option of traditional cashier checkout system.
Here, in this kind of approach, service users can scan the items and make a payment
for the item through the system. While retailers claim to install SCS to improve customer
service, traditional cashier checkout systems are costly in terms of labour, so there is
also a benefit in reducing labour costs (Hafeez and Muhammad, 2012). It has been
stated by Fernandes and Pedroso (2016) that in today’s world, there are many
supermarkets that are adopting the latest technological advancements so that they can
perform better than their rivals or competitors. The needs and demands of people are
changing on a continuous basis, so supermarkets have to adopt these in order to fulfil
their requirements. By using different technologies, business organization will be able to
offer more innovative or quality services to their customers, therefore their satisfaction
level can be enhanced.
Latest technology of self-checkout system is also attached with some sensors and
verification software which help the firm in identifying threats occurring at the time of
checkout Gruber et.al.(2015), through this, the overall efficiency can be improved. SCS
can help people save time, as they don't have to stand in a long queue, which will
reduce their frustration and enhance the customer satisfaction level (Beck, 2011). Some
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advantages of using self-checkout systems include the speed up of purchases as now
customers can pay for their services easily. Along with this the self-checkout system will
take less space in the store thereby allowing for more shelves and more products to be
displayed (Beck, 2011). On the other hand, there are some limitations of using this
technology, as some customers will face difficulties at the time of scanning or making
the payment. As there is no face-to-face interaction with customers and cashiers, staff
members will not be able to identify the views of their customers (Hilton et.al, 2013).
On occasions, self-checkout systems play an important role in enhancing the
smooth functioning at the workplace; this will allow the supermarket to reduce their cost,
which is associated with labour and other business areas (Khan, 2012). People can also
maintain their privacy level, e.g. those who are wishing to purchase tampons and would
most likely prefer to pay by themselves (Orel and Kara, 2014), however adult purchases
such as alcohol would still require staff approval. There is the downside that SCS can
take time, as a number of people don’t know how to use such systems, causing a queue
and thereby countering the advantage of a quick process. Technology is the main factor
that can help a firm in achieving competitiveness at global as well as international level
(Lee and Yang, 2013). Some companies use these technological innovation aspects so
that they will be able to attract people towards their services at local market.
2.3 Self-service information technology
It was identified that previous studies conducted on the effectiveness of self-
service technologies were unable to evaluate the benefits that were achieved after
implementing the self-checkout systems at the workplace (Leung and Matanda, 2013).
A similar conclusion was reached by another study, stating that previous literature had
failed to deepen retailers understanding on the benefits of Self-service technologies. It
has been analysed from some previous studies that the attitude of customers towards
using new technology has a major impact on the perceived service quality (Kallweit,
Spreer and Toporowski, 2014). Furthermore, some past literatures failed to go further in
explaining how significant the attitude towards using new technology affects the
perceived service quality and why there is a relationship between the two. The
perceived ease of use has a positive impact on the customer’s attitude when using the
Self-service Information Technology (SSIT). The attitude towards using the SSIT also
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had a positive relationship with the intention to reuse the SSIT (Kallweit, Spreer and
Toporowski, 2014). This is line with the findings of previous literature, which found that if
customers find the self-service technology easy to use, they would prefer it to more
traditional methods as it quicker and more efficient (Shamdasani et al 2008).
Further research was done to verify these findings, concluding that customers
have positive attitude towards the self-service information technology, which can
encourage supermarkets to adopt innovation (Kruse, 2012). It is also analysed from
past studies that there is direct relationship between the satisfaction level of customers
and self-service technology. Sometimes, people find it easy to use as this is more
convenient than any other traditional methods. It is quicker as through this service user
can save their time (Kruse, 2012).
2.4 Concept of customer satisfaction
Customer satisfaction is a term that can be measured on the basis of needs and
demands of people (Orel and Kara, 2014). It is the responsibility of a business
organization to provide some innovative services to their consumers so that their
satisfaction level can be enhanced. This is based on some aspects like products,
employee knowledge, technology and a company’s brand image. On the contrary,
satisfaction could be regarded as a consumer’s evaluation of a product or service,
which is based on their perceptions (Cyr and Brown, 2012). If customers’ needs are met
within the organizational services, then the satisfaction amongst its customers is
increased. Current study seeks to examine the service quality of supermarkets SCS and
its impact on customer loyalty and satisfaction by undertaking an empirical research.
SCS is mainly employed by retailers in order to cut the cost and make shopping
faster and convenient for the customer (Lee and Yang, 2013). Through this, customer
satisfaction can be boosted after using self-checkout system, which in turn leads to
customer loyalty. However, this could have been due to unseen service contributors,
e.g. clean floors, well-stacked products and so on. These kind of technologies can
promote loyalty among people by focusing on the quality of services and products which
are delivered by retail stores (Wilson, 2013).
There are some factors like innovation, technology, satisfaction, quality which can
help an enterprise in achieving success at the market area as compared to their rivals
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(Hassan, Sade and Rahman, 2013). Customer satisfaction will also allow a company to
convert their potential users into loyal ones; thus the likelihood of continuous purchases
by the same customers is increased. This is totally based on the employees that how
they will treat their customers and in what manner they are providing the services to
them. Through the implementation of customer service, firms can build a unique image
in front of the people and so that they can differentiate from one product to another
(Blumberg, Cooper and Schindler, 2014). Through these, they will be able to enhance
lifetime value for the service users. It can be concluded that when people are highly
satisfied then, as a result, negative publicity can be reduced and a firm will be able to
maintain their relations with the public. Along with this, they will be able to retain their
end users and build a strong customer base. There the satisfaction among users is vital
for the business organization as this may help them in achieving goals and objectives.
Managers of retail stores can measure the satisfaction level of their customers by
using some monitoring techniques or by taking feedback at the time of purchasing the
items (Hafeez and Muhammad, 2012), which will allow them to more easily maintain the
quality level of their goods and services. Some of these may include customer feedback
and observations. Positive and negative aspect can be identified and addressed in this
manner, which can help the firm in improving customer relationships and experience. A
manager of TESCO can also conduct some training programs at the work environment
so that the knowledge and skills of employees can be improved. This way they can deal
with their consumer’s needs in an effective manner. As previously mentioned there are
customers who are not familiar with the process of SCS and they just struggle, so for
this firm should take this into account and offer the services as per their choice and
needs.
An enterprise has to maintain the satisfaction among all the people who are
consuming their services (Srivastava and Sharma, 2013). There are various aspects
through which the company will be able to maintain the satisfaction of their service
users. If customers are being happy with the products they purchased from Tesco, then
their requirements or expectations will be fulfilled. After conducting the survey, if some
factors affect their motivation regarding that particular industry, then a user will not
purchase services from that firm. Organizations have to provide some rewards in the
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form of offers, best deals etc. to their customers on a continuous basis so that they will
feel comfortable whilst buying goods (Van Riel et. al., 2012). Along with this, some
loyalty programs should be conducted at market so that more people will get attracted
towards the company’s services and commodities, such as the Tesco Club Card.
2.5 Theories related to customer satisfaction
Satisfied customers are a step towards loyal customers, this can help a company
in becoming more successful (Orel and Kara, 2014). There are various theories that can
be used by an enterprise so that customer’s satisfaction can be evaluated and their
wants can be identified. Such theories include dissonance theory, assimilation theory,
contrast theory and so on. Dissonance theory is based on the customers’ expectations
and opinions. Sometimes, people make a comparison between products, which are
offered by firms, and their actual expectations. Through this, their satisfaction level can
be evaluated in an effective or more successful way. Assimilation is similar to
dissonance; service users make a perception about a product that is offered by a
company, they can match it with their own expectations and in this way an industry will
be able to build a strong base of consumers. Contrast theory is one which identifies the
discrepancy between the attitude of an individual and the opinion of other people. E.g. if
a company promotes some services through advertisements, then if the expectation of
end users were not met this may influence their satisfaction (Van Riel et. al, 2012).
Anderson developed assimilation-contrast theory in 1773, he stated that if expectations
were not fulfilled then discrepancy will also arise, due to this their overall satisfaction will
not be achieved.
2.6 Multi-channel self-service experience
Many supermarkets are designed specifically for the products rather than
customers (Wang, Harris and Patterson, 2012). Retailers have succeeded in
transforming customers to part-time employees in the sense that they've become a part
of the production process. The retail insight reveals that customers employ a multitude
of different channels to purchase and collect products.
A global survey by NCR Corp revealed that 85% of global consumers prefer to use
supermarkets that provide multi-channel self-services, for example by ordering their
groceries online or through SCS (www.kioskmarketplace.com, 2017).
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Supermarkets seeking to increase SST (Self-service technology) usage among its
customers should explain the benefits of using SST to their stakeholders (Van Riel et.al,
2012). It reveals that after receiving training, customers are more willing to continue
using the SST, as well as an improved perception of self-service technology. Waiting
time plays an important role in the self-service experience. If purchasing of an item
takes less time, user experience is enhanced. Retailers adopt new technological
advancements or innovation so that effective outcomes can be achieved which can lead
an enterprise towards success.
2.7 Impact of self-checkout system on customer satisfaction level
Services are described as something people use in order to fulfil their own
requirements (Srivastava and Sharma, 2013). Service encounter is a process where an
individual can interact with the provider so that people will be able to get effective
services. In traditional approaches, consumers can also communicate with the front line
staff members but now, it is being replaced with self-service technological systems.
Quality of different products is based on customers’ perceptions, depending on the type
of services used to purchase them, with different customers preferring different
services. SCS is an extra service that would improve the satisfaction of customers
preferring it. (Fernandes and Pedroso, 2016). These kinds of technological
advancements can affect the customer’s satisfaction level in a positive manner.
Through this, the actual cost can be reduced to some extent which will be beneficial for
the firm. When cost becomes reduced then TESCO would be able to generate high
profitability and revenues, which can lead them towards success. So, through these
supermarkets can gain the attention of many people towards their goods and products
(Orel and Kara, 2014). This can also vary with the experience of an individual with
company’s policies, rules and regulations.
Self-checkout system which is adopted by TESCO is beneficial for them as well as
for service users (Khan, 2012). People can make the payment of their purchase in a
quick and efficient manner. Therefore, their satisfaction level can be enhanced and they
will again buy products from the same firm. This can also change the perception of
people regarding retail sector. Quality services are strongly linked with the satisfaction
among people. If consumers will get high standard services then they would become
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loyal towards the firm and so, they can gain the attention of many more potential
customers (Grube et. al. 2015). There are some other factors which can affect the
consumer’s satisfaction like demographic variables, speed in delivery of services,
reliability, technological knowledge among staff members, poor design, customer driven
failure and so on.
2.8 conclusion
There are many literature studies that have been conducted by different authors.
Some of them identify the significance of such kind of technologies and others identify
the impact of this on organizational performance. Past readings provide valuable and
authentic information related to this dissertation, but these did not provide a relationship
between the latest technological advancements and consumers’ fulfilment. In this
dissertation, the impact of SCS is identified based on the satisfaction level among
people
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Overview
This section highlights the methods and techniques which were used during the
research. The present study is carried out using a case study approach in order to
determine the purpose of self-checkout system and how this can improve customer
satisfaction. During this study, mixed methods were chosen by scholars to guide the
study during the collection of data and contribute significantly to existing theories. The
research utilised a semi-structured interview and an online questionnaire so that the
purpose of self-checkout systems (SCS) can be evaluated. This section presents the
research design, approaches, philosophies and data collection instruments as well as
the analysis.
3.2 Research philosophy
‘Research Onion’ was used to develop the research design (Snyder, 2012). The
research philosophy for this study is pragmatic; this is due to the researcher’s
preference of a mixed method research. This approach was chosen because the use of
a mixed method approach is famous when trying to obtain a holistic view of academic
research conclusions and it allows for an increase in generalization of findings.
Furthermore, due to the lack of expansive and detailed literature on self-checkout
systems a mixed method study is valuable if the researcher wants a reliable verification
on interpretations and conclusions (White, 2000).
The researcher will employ a Sequential explanatory research design, this
involves conducting the quantitative research first which is the ‘online questionnaire’ and
then using qualitative research (interview of 20 Tesco store managers) to expand and
elaborate on the initial set of findings.
3.3 Research method
Research methodology is characterised as the strategy behind the decision and
use of specific methods to obtain an outcome (Gale and et. al., 2013). This research
would undertake a case study approach on Tesco in which the adoption of Self-
checkout system will be explored for its benefits and relationship with customer
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satisfaction. Research suggests several reasons as to why case studies should be
utilised. Three key reasons include examining a scenario in a particular setting, to
examine various sources of data under consideration and when there is no clear line
between the phenomenon and the context under study. Case studies could also be
used to examine the current theories concerning its theoretical importance, which are
not satisfactory. The research was carried out in two sequential phases. In stage one
data was collected from 120 Tesco customers through an online questionnaire, the
findings helped to formulate the questions for stage two, which involved a semi
structured interview of 20 Tesco store managers.
3.3.1 Stage One
In stage one a quantitative approach was employed. This was essential because
statistical measures are useful when a researcher wants to understand the relationship
between variables and express the patterns found concisely. The researcher conducted
an online questionnaire involving 120 Tesco customers who are using services of
Tesco. This online questionnaire was intended to elicit Tesco customer perception of
self-checkout systems. In order to get the high feedback from the respondents, some
questions were structured using Likert and rating scales, which comprised of a variety of
options for selections such as strongly agree, agree, neutral, disagree and strongly
disagree. The success of the questionnaire depended on establishing a representative
sample that is large enough to allow researchers to be confident that the results could
be generalised to the wider populace (Neutens and Rubinson, 2010).
The online survey was chosen for various advantages it offers. This includes the
ability to access large sample size within a limited time. This kind of investigation is also
suitable for the complex situation where sample size is large and outcome is difficult to
achieve. The inaccessibility of retail shoppers and their undefined geographical
dispersal made the online survey more appropriate as opposed to the traditional survey
method (Silverman, 2016). Another advantage is the Likert scale analysis of collected
data, which is an efficient way of gathering data within a short period at a low cost. The
online questionnaire also aided in the formation of the semi- structured interview.
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3.3.2 Stage Two
The second stage adopted a qualitative approach, Qualitative research methods
tend to emphasize on the process, which is used to determine the significance of a field
of study and it concentrates on the association between the researcher and the topic
under study (Glesne, 2015)). On the other hand, qualitative research method could be
described an interpretative methodology for comprehending the significant individuals
towards a phenomenon in a particular setting (Hunleth, 2011).
A supplementary semi-structured interview was conducted with 20 Tesco
managers across Hampshire, United Kingdom in order to reveal managerial perspective
on the purpose of SCS. A Semi-structured interview constitutes a set of questions and
topics as a guide, where some set of questions has been asked to the number of
respondents regarding self-checkout system (Snyder, 2012). These inquiries were
standardised and the outline was provided to guarantee that the research covers its
intended objective.
The semi-structured interview was chosen for several reasons. One benefit was
that it reduced the effects of adverse participants during the collection of data. Semi-
structured interviews also permitted the researcher to gather deeper insights on the use
of SCS as well as customer’s willingness to use SCS. The interviews were recorded
and transcribed into text. The current research also gathered some suggestions; field
notes related to the perception about SCS among the management and their
employees. The views and opinions of people can be identified on the basis of some
actions like facial expression, eye contact, body language and some gestures.
The participants were also given some time to give the answer for particular
questions. The researcher asked several follow-up questions in order to clarify ideas,
related to the self-checkout system and its effectiveness. This provides an opportunity
to obtain a positive interaction with the participants, developing an effective report with
the respondents.
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3.4 Sampling method
This is a method that is used by the researcher in order to extract a small sample
from a large population as it is not possible to conduct a questionnaire on the whole
population.
Stage One
All individuals in the online questionnaire fit the requirement stated below
1. An active Tesco customer.
2. Has used Self-Checkout System.
A non-probabilistic purposive sampling method was adopted as the researcher targeted
groups who had the necessary traits i.e. Tesco customers. The sample was accessed
through Facebook groups created specifically for collecting this data and direct
messaging. There was a 100% response rate from the 120 customers.
Stage Two
This involved visiting over 35 Tesco stores and asking to speak to the manager on site.
The sampling method adopted in this stage was a non-probabilistic heterogeneous
sampling method. This was used as the semi-structured interview was intended for
Tesco store managers. 20 store managers participated in the interview. The interview
consisted of open-ended questions.
3.5 Data analysis
Quantitative data analysis: This included determining the extent to which self-
checkout systems could be utilised to improve customer satisfaction. This research
adopted several statistical methods to examine the Likert data obtained such as the
Pearson’s Coefficient and t-test (Williams, 2011). These were utilised in order to
investigate the key characteristics of variables and questions of the study. The analysis
was exhibited using percentages, frequency tables, diagrams and pie charts where
necessary. The findings will be used to draw an effective conclusion, which in turn will
form the premise for the recommendation and future research.
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Qualitative data analysis: After collecting and transcribing the information from
semi-structured interviews, the researcher prepared an interpretation by using a
thematic data analysis approach. The analysis process evaluates and organises the
data, conducting a preliminary read-through of the database, reducing the responses
into themes by coding, representing the data and forming an interpretation, so that the
data can be easily reviewed. The overall information is divided into groups or parts in
order to avoid overlap and redundancy.
3.6 Reliability, Validity and Generalizability
The validity and reliability of data is essential to any research project as if the data
is invalid or not generalizable the project would be invalid. The researcher sought to use
a mixed method approach in the research design as adopting a variety of methods and
approaches can help to provide a valid, reliable and generalizable set of results. During
the interview the researcher’s views and opinions were withheld so as not to bias the
opinions of the interviewee.
3.7 Ethical considerations
There were several ethical aspects that were considered during the course of the
research or at the time of carrying out the field of study. These aspects were considered
the privacy of the respondents as no one is forced to reply for the questionnaire. In
order to uphold the safety of the informants, the study sought permission from
appropriate authorities, ethics board and local store managers. After approval was
granted, the research obtained consent from the informants and outlined the main aim
of the study. The research also maintained the privacy and protection from any
unwarranted harm, which could be inflicted on them because of the information they
provided. The local store managers and retail shoppers were assured that their opinions
and ideas were only for academic purposes and were to remain confidential.
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CHAPTER 4: RESULT AND ANALYSIS
4.1 Overview
This chapter presents the empirical results and the data obtained from an online
questionnaire of respondents and semi-structured interviews of Tesco managers. It
provides an in depth view of the findings from the two research methodologies
employed. The sections begin by presenting an analysis of quantitative data. Here,
thematic approach has been used which help the researcher in order to present results
in the form of graphs.
4.2 Thematic analysis
This section presents a thematic analysis of the results from the qualitative data
obtained. The research examined the qualitative data in order to understand the
managerial perspective on the impacts of SCS. The data was collected using semi-
structured interviews from employees of Tesco. The identity of the participants was kept
hidden for their safety, as they are more likely to be prejudiced due to the opinions they
hold.
During the analysis, the collected data was examined for sub-themes, themes and
codes, which could be used to understand the managerial perspective towards the use
of SCS. The research examined the data obtained from the respective managers in
detail by using a tape based analysis and a by developing an abridged transcript.
Theme 1: Customer behaviour has changed since supermarkets adopted self-
checkout technology as compare to manned stations.
Findings: The participants were asked to provide their opinions concerning the
major changes they have perceived in customer behaviour when using self-checkout
machines as opposed to manned stations. The responses of the participants clearly
highlighted the issue of privacy among the customers when purchasing certain
products. Some respondents say that customers are more willing to purchase items
such as tampons as the self-checkout affords them more privacy.
The customers prefer the SCS as it helps them to avoid talking to sales
staff (Manager 004)
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Theme 2: Managers are in agreement that self-checkout system is helpful in
reducing cost.
Findings: The study examined the methods, which could be used to reduce the
cost for retail stores by using SCS. In this case, employees of retail stores were asked
to provide suggestions on how the use of SCS could lead to cost reduction in
supermarkets. The response of each manager suggested that the use of SCS can lead
to cost reduction. Each participant suggested different methods of reducing cost. 100%
of the managers interviewed agreed that they use SCS in order to reduce cost and
customer satisfaction improvement is a bi-product of that.
We try to balance cost whilst also delivering optimum quality service for our
customers (Manager 004)
Yes, we are rapidly adopting SCS but this is because of the long-term benefits it
brings to our business and the current consumer needs (Manager 006)
After determining the methods, which could be used to provide reduce cost, the
study then examined whether the Self-service checkout was beneficial in reducing cost.
The participants were asked to provide their opinions on how the use of SCS could
minimise cost. The responses of the participants indicated that it was a long-term
investment in which the retail store initially spent a lot of money on it and expects a
reduction in operational cost in the long run as well as cost-effective products. This
suggests that the use of SCS must be aligned to suit the operations of the supermarkets
so that it can be considered to cost-effective and reduce the operational cost involved.
Theme 3: Customers prefer to use self-checkout service technology.
Findings: Initially, the study sought to determine if the customers preferred to
use the Self-service checkout from the perspective of management in retail store.
Employees from the Tesco held the opinion that most of the customers preferred to use
self-service checkout technology as opposed to the manned station.
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I’ve found that as customer begin to get more acclimatized to the SCS they begin
to use it more (Manager 003)
However, this was limited to the how fast the customer became acclimatized to
the SCS. This suggests that there is need for regular training to be offered to customers
and staff in order to get used to the Self-service checkout. Through this, the firm will be
able to enhance the satisfaction among their different service users.
Theme 4: Consumers buy more products in self-service checkout as compare to
manned system.
Findings: The question Do customers purchase more at Self-service Checkout
Compared to manned stations? Received a lot of mixed responses from the managers.
The mix in response was due to the various types of SCS used in the different Tesco
stores as some are used for small purchases why others are built for larger purchases.
The Majority did agree that the SCS did influence the amount of purchases however it is
difficult to ascertain to what degree.
Theme 5: Employees are agreed that self-checkout system can make the buying
process faster.
Findings: In order to examine the efficiency and effectiveness of using SCS, the
study used two key inquiries. In the first question, study sought to determine if the
process of buying and purchasing was faster when using SCS from the perspective of
the management. The participant significantly agreed that it is fast and efficient
especially when purchasing many products as compared to manned stations, which are
slow. In the second inquiry, the study sought to determine the effectiveness of self-
service checkout technology from the perspective of the managements. The participants
indicated that the self-service checkout technology had various advantages such as the
following; it reduces workload on the staff.
It takes just one staff to manage at least 5 Self-Checkout Systems in my
store (Manager 005)
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Some respondents are agreed that customers are willing to engage with the technology
and it has extremely helped to reduce the workload of the staff. Customers find it very
quick and efficient to use and other people says that it is very effective and it helps to
streamline the purchase process our customers find it very useful.
4.3 Quantitative Data Analysis
The study begins this section by examining the descriptive statistics as follows:
4.3.1 Descriptive analysis of the data
This section of current dissertation will present the empirical results and the
information which is gathered from the survey which is conducted on employees.
The research is based on a sample of 120 respondents who were asked to fill the
questionnaire form. Based on this sample, research noted several diverse aspects,
which were different among the respondents namely the different ages, preference
level, ease of use and the application of SCS in buying.
Figure 1:Age group of the respondents
Figure 4.1: A representation of the different age group of the respondents
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The results of the preference levels among the respondents revealed that a large
majority of the respondents preferred using SCS representing 87% whilst 13% of the
respondents held divergent views. This suggests that age significantly influenced the
use of SCS as shown in Table 4.1 below.
Table 4.1: A representation of the ease of use among respondents
Frequency Percent Valid Percent Cumulative Percent
Valid No 6 10.0 10.0 10.0
Yes 54 90.0 90.0 100.0
Total 60 100.0 100.0
The study also examined the extent to which the respondents found it easy to
use SCS. The data revealed that 90 percent of the respondents found it easy to use
while 10 percent of the respondents held a contrary view as shown in Figure 4.3 below.
This could be attributed to various factors related to the perception of the respondents
towards technology such as age, perceived usefulness among others.
104
16
Yes No
Figure 2: Ease to use the SCS
Figure 4.2: A representation of the ease of use of the SCS among the respondents
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Consumers are agreed that SCS can make the buying process faster.
As one of the demographic features, the research examined the effect of SCS in
buying among the respondents. The data revealed that 98 respondents representing
82% of the respondents indicated that SCS improved the speed of buying in the
supermarket while 22 respondents representing 18% of the respondents were
indifferent as shown in Table 4.2 below.
Table 4.2 The effect of SCS on speed of buying among respondents
Frequency Percent Valid Percent
Cumulative
Percent
Valid No 22 18.3 18.3 18.3
Yes 98 81.7 81.7 100.0
Total 120 100.0 100.0
4.3.2 Inferential data analysis
4.3.2.1 Quality of service obtained using SCS
In the present section, respondents give their views on the quality of services that
will be obtained from the self-checkout system. In this, the scale will be moved from 1
(Excellent) to 5 (Bad). The overall analysis will be carried out on the basis of t-test and
this is also performed with different age groups. Initially, there was a need to compare
the mean scores of the different variables involved. The mean score results are
presented in Table 4.3 below.
Table 4.3 Mean score of the quality of service regarding the use of SCS
What is your Age Group N Mean Std. Deviation Std. Error Mean
IS the quality of service good
rate from 1(excellent) to
5(Bad)
18-25 104 5.42 2.516 .348
26-45 16 4.76 2.122 .75
The data can be interpreted after completing the t-test approach that there was a
small variation in the mean score of the quality of service from SCS among the different
age group. This small variation between the mean score suggests that the quality of
service tends to increase, as there is an increase in age. Thus, the researcher
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examined the results of the independent t-test to evaluate the significance of the
variation.
The results obtained are presented in Table 4.4 below.
Table 4.4 Results of the Independent sample test
Levene's Test for
Equality of
Variances t-test for Equality of Means
F Sig. t df
Sig. (2-
tailed)
Mean
Differenc
e
Std. Error
Differenc
e
95% Confidence
Interval of the
Difference
Lower Upper
IS the quality of
service good
rate from
1(excellent) to
5(Bad)
Equal variances
assumed .986 .325 .717 58 .476 .337 .469 -.603 1.276
Equal variances
not assumed .814 10.29
0 .434 .337 .414 -.581 1.255
The results revealed that there was no statistically significant relationship
(F=.986, p=.476, df = 58) between quality of service and age group. The results also
indicated that the t value (.717) was positively significant to the critical t value (.434),
implying that the quality of service is a significant fact in the use of SCS.
4.3.2.2 Preference of the customers
The study examined the preference among the respondents regarding the use of
SCS. In this case, the research evaluated if they preferred self-service checkout,
manned station or they were indifferent. The study first evaluated the descriptive
statistics in order to understand the variations among the different groups. The results
obtained are presented in Table 4.5 below.
Table 4.5: Descriptive statistics of the preference of SCS
Frequency Percentage
Valid
Percentage
Cumulative
Percentage
Valid Self-service checkout 72 60.0 60.0 60.0
Manned station 16 13.3 13.3 73.3
Indifferent 32 26.7 26.7 100.0
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Total 120 100.0 100.0
The data revealed that 72 respondents representing 60% of the respondents
preferred using self-service checkout, 16 respondents represent 13% preferred manned
station and 16 respondents representing 27% were indifferent. This implies that most of
the respondents preferred the use of self-service checkout.
Does the age of customer influence their decision to use SCS?
The research also examined the preference level of Tesco customer among the
respondents with respect to their age group. This was accomplished using Pearson
correlation and the results are presented in Table 4.6 below.
Table 4.6 Pearson correlation of preference to use SCS against age-group
Which do you prefer
to use
What is your Age
Group
Which do you prefer to use Pearson Correlation 1 .207
Sig. (2-tailed) .003
N 60 60
What is your Age Group Pearson Correlation .207 1
Sig. (2-tailed) .003
N 60 60
The data indicated that there is a significant correlation between the preference
to use SCS and age group with a coefficient of 0.207(p = 0.003(< 0.05)). Since majority
of the respondents were between 18 and 25, this suggests that there is a tendency to
use SCS among the young populace as compared to the older generation.
4.3.2.3 Errors encountered
The study found that 83% of respondent didn't encounter issues when using SCS
whilst 17% say they have The study then went further to determine if the significance
level of errors against the quality of service received by the respondents. The research
utilized a Pearson correlation to determine the significance level between the errors and
the quality of service while using SCS. The results are presented in Table 4.7 below.
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Table 4.7 Pearson Correlation of the error and quality of service
Doyouencounter
errorsfrequentlyd
uringyouruseof1
IS the quality of
service good
rate from
1(excellent) to
5(Bad)
Doyouencountererrorsfreque
ntlyduringyouruseof1
Pearson Correlation 1 .132
Sig. (2-tailed) .314
N 120 120
IS the quality of service good
rate from 1(excellent) to
5(Bad)
Pearson Correlation .132 1
Sig. (2-tailed) .314
N 120 120
The data reveals that there is no significant relationship between errors
encountered and the quality of service with coefficient of 0.132 (p = 0.314 (> 0.05)). This
suggests that an increase in errors tends to reduce the quality of service expected.
More effort should be put in reducing the errors that occur when using the SCS.
4.3.2.4 Staff response rate to resolve errors
The study sought to determine the rate at which the respondents received
technical support in the various store while using SCS when errors occurred. The study
first evaluated the descriptive statistics of the response rate and the results are
presented in Table 4.8 below
Table 4.8 Descriptive statistics of the response rate
Frequency Percent Valid Percent
Cumulative
Percent
Valid Very fast 34 28.3 28.3 28.3
Fast 32 26.7 26.7 55.0
Normal 30 25.0 25.0 80.0
Slow 24 20.0 20.0 100.0
Total 120 100.0 100.0
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The data indicated that that 55% of the respondents received support very fast or
fast, 25% were neutral and 20% of the respondents were of the opinion that the
response rate was slow. This suggests that the majority of the customers were satisfied
by the service they received from the support staff and Tesco in general.
4.3.2.5 Factors affecting the use of SCS
Lastly, the study sought to identify the factors hindering the use of SCS in the
supermarkets as well as the factors, which supported the use of SCS. Respondents
were asked to provide reasons as to why they liked Self-checkout service. The
respondents suggested a number of reasons, which include it, is fast, reliable and
permits for privacy. On the other hand, when the respondents were asked to give
reasons as to why they did not like Self-checkout service they provided the following
reasons; increased errors, computer related problems, difficult to scan some items, slow
response from the technical support and long downtime
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CHAPTER 5: DISCUSSION AND CONCLUSION
5.1 Introduction
This section presents a discussion of the findings obtained after the analysis of
the quantitative and qualitative data with specific reference to the literature review. The
study intended to determine whether the use of SCS could lead to cost reduction,
increased sales and eventually customer satisfaction. The research adopted multi-
methods in examining the data obtained to contribute to existing literature. There were a
number of findings, which were obtained and they are discussed as follows:
5.1.1 Self-checkout system
After carried out literature review, it can be analysed that self-checkout system is
more effective tool which play a wider role in the success of an organization. Form
various survey and it can be analysed that many people prefer to use such technology
as opposed to manned station. The preference to use self-service checkout technology
was significantly affected by age and the longer period of using technology. The results
suggested that more young people were most likely to use SCS compared to older
people. These results were consistent with other studies conducted. They presumed the
ease of use of SCS had a significant impact on customer’s attitude. The effect of gender
on the use of SCS was examined and found out that there was no significant difference
between these two groups in terms of service quality (Shamdasani et al., 2008).
5.1.2 Effectiveness of Self-checkout system
The results revealed that there were a number of ways in which the use of SCS
could be useful in reducing cost among retail stores. These methods incorporate
balancing cost, streamline the purchasing process and reduce the supplier cost. A
simulation was conducted of a possible investment regarding the use of SCS to replace
manned stations. It was discovered that the use of SCS increased the performance of
the supermarket by reducing wait period (Gruber et al. (2015). Other ways of that self-
checkout systems could be utilised to reduce cost is enticing new customers, enhancing
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the share of the present customers, generating higher customer surplus and reducing
cost via offloading work to the customers themselves. (Inman & Nikolova, 2016).
The findings also revealed that SCSwas perceived as a long-term investment
among the retail stores as it assisted them in reducing the operational costs as well as
increasing productivity. To increase the performance further, the research suggested
that SCS should be aligned to correspond to the business objectives of the retail store.
These findings were supported by an examination of how technology has significantly
played an important part in enhancing income while at the same time reducing costs of
operation (Inman & Nikolova, 2016).
5.1.3 Customers satisfaction
From the above analysis it is evaluated that customer satisfaction is very important
for the business organization and its success that they achieved at market area.
Companies need to use such kind of advancements through which service users will
feel satisfied and they will repurchase the products from same industry. Through this,
loyalty can be increased among people so negative publicity is get reduced and positive
mouth publicity can be enhanced. Some theories are also there which can help the firm
in enhancing the satisfaction among people. This can also be done by offering the
products as per the requirements of consumers
5.1.4 Effect of SCS on customer’s satisfaction level
The results revealed that privacy has been a major reason Tesco customers
choose to purchase certain products over SCS. There are various risk factors
associated with the use of a self-checkout system such as theft related to payment
systems (Taylor, 2016). The use of SCS has resulted in low customer satisfaction when
the customer is considered to have higher expectations from the retail stores. This was
significantly contributed to anxiety, uncomfortable situations and unoccupied on the part
of the customer (Beck, 2011).
The results revealed that there were various advantages, which were associated
with the use of SCS as compared to manned stations when buying and purchasing. The
customers perceived the process as fast, more efficient, and appropriate, for instances
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when there are many products. The case study analysis also revealed similar benefits in
addition to the simplicity and accessibility. From the perspective of the retail store and
its management, the results revealed that they gained in terms of efficient processes,
reduced staffing, reduced cost of operations, increased sales, customer loyalty and
improved performance. These findings have been supported by various researchers.
Orel & Kara (2014) found out that the key factors which affected the use of SCS among
supermarkets are mainly cost reduction, increased the speed of transaction and
convenience. They also added the supermarkets are expected to experience enhanced
customer expectations, fulfilment and loyalty. Meuter et al. (2000) also discovered a
number of benefits from the use of SCS in retail stores. They cited benefits such as
saving money, convenience to the customer, ease of use and avoidance of service
personnel.
5.1.5 Advantages and disadvantages of the use of SCS
The study examined the major factors, which significantly affect the use of SCS
in the supermarkets. The factors, which support the use of SCS in the retail store,
comprise of four factors namely fast processing, reliable, efficiency and permits for
privacy. On the contrary, Leung & Matanda (2013) and Jensen et al. (2014) discovered
that the use of SCS was influenced by factors such as the independence of the
customer, the level of training and the perceived obscurity.
The results also discovered the factors against the use of SCS, which,
incorporate increased errors, computer related problems, difficult to scan some items,
slow response from the technical support and long downtime. Concerning the errors,
the results revealed that there is no significant relationship between errors encountered
when using SCS and the quality of service. Meuter et al. (2000) highlighted some of the
problems associated with the use of SCS such as process failure, service design
problems, customer-driven failure and technology failure. Shamdasani et al. (2008)
suggested the use of customer’s perception when deploying system such as SCS,
which are characterised by user-friendly designs and accompanied by a virtual
assistant.
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Regarding support from staff, the results revealed that the majority of the
customers were satisfied by the service they received from the support staff and the
supermarkets in general. These results were similar to Shamdasani et al. (2008) as they
found out technical support was very critical for customers who were accessing the
retail stores despite the fact that they had reduced the number of employees. They
study recommended the use of personalised service, which could assist the customers.
5.2 Conclusion
From the above carried out analysis, it has been summarized that now companies
should adopt technological advancements so that they will be able to perform well at the
marketplace as compare to other players. In order to develop the different aspects of
topic, researcher reviewed some literatures so that they will be able conduct the
research in more effective as well as efficient manner. The main purpose of this study
was to determine if the use of some advanced technology like self-checkout system
could lead to cost reduction, improved sales and customer satisfaction among the retail
stores compared to manned stations. In this study, the study adopted the use of multi-
method data, which entailed the use of qualitative research method. In order to gather
data for the research, the study adopted the use of a semi-structured interview, online
survey which is conducted on the employees and customers of TESCO respectively.
The research managed to administer the online survey to 120 respondents and perform
interviews on approx.20 staff members.
5.2.1 To examine the self-checkout system that is adopted by Tesco
Self-service checkout system is adopted by retail industries where customers can
perform their own purchasing process so that their specified goals and objectives can
be achieved. The analysis of the data revealed a number of outcomes. First, the
customers preferred to use the self-service checkout technology due to the various
advantages it offered. Secondly, the study discovered that the customers who preferred
to use SCS were mostly the young population as compared to the older population.
Thirdly, the study uncovered the different ways in which the use of self-checkout system
could lead to cost reduction. These incorporate streamlining the purchasing process,
empowering customers to scan the items for themselves instead of the manned station
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and reducing the supplier cost. Fourthly, the study discovered that SCS was perceived
as a long-term investment by the various supermarkets. Fifthly, the study discovered
that there was a shift in the behaviour of the customers when it came to buying certain
products. Lastly, the study discovered numerous advantages and disadvantages, which
are associated with the use of SCS from the perspective of the management as well as
the customer. In conclusion, the study highlighted that self-checkout system is here to
stay and that it's a beneficial and more cost rewarding alternative compared to manned
stations, with supermarket reaping the benefits in the long run.
5.2.2 To examine the current satisfaction level among customers of TESCO
In the above carried out analysis, it can be evaluated that if customers will be
satisfied with the current technologies which are adopted by Tesco then they will be
able to achieve competitiveness as compare to other retail industry. In order to evaluate
the level, some different theories are identified which can help the company in
performing as per the expectations of people. So, by conducting the analysis, it can be
evaluated that self-service checkout system plays a significant role in enhancing the
satisfaction level among people who continuously purchase the services from TESCO.
When this level is get enhanced then the retail firm will be able to get success at the
marketplace.
5.3 Recommendations
This research has proven to be wholly comprehensive and insightful with a mix of
valuable qualitative analysis. However, the use of further quantifiable data such as sales
figures and supermarket footfall rate would be advantageous to understanding the
benefits and demerits of SCS to the retail market as a whole. Further investigation into
the use of SCS in other European Supermarkets would be instrumental in analysing
customer behaviour and acceptance of SCS. This research will be useful for the future
researcher as they will be able to refer the current analysis in order to create a strong
base for their own research. Self-checkout system has a great potential to increase
efficiency and capital value for retailers as this will help them in building the good
perceptions in the mind of the people. Some recommendations are there which needs
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to be followed by business organization so that they can effectively implement the new
innovative and technological advancements at their workplace. These are stated below:
Training and development: This is the responsibility of higher authority to
provide some training practices to their staff members regarding to the new
technological advancements and innovative practices. Through these, employees will
be able to enhance their skills and competencies so this will help them in dealing with
their customers effectively. Along with this, retail industry should also conduct some
training programs for their customers so that they will be able to know that how they
have to use the self-service system. So, in this way the satisfaction level among all the
consumers can be increased.
Promotional activities: Retail industry should have to use some promotional
activities so that they will be able to increase their brand awareness. Through this, the
perceptions which are made by an individual regarding to the company’s products and
services can be changed. For this, an enterprise can post their advertisements on the
social media so that consumers will be able to know about different features and
benefits of services.
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Supermarket self-checkout technology approaching tipping point?. 2017. [Online].
Available through: < https://www.kioskmarketplace.com/articles/supermarket-
self-checkout-technology-approaching-tipping-point/>. [Accessed on 14th
August 2017].
The Pros and Cons of Using Self-Checkouts. 2016. [Online]. Available through: <
http://www.business.org/software/point-of-sale/the-pros-and-cons-of-using-
self-checkouts/ >. [Accessed on 14th August 2017].
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Self-Checkout System 6. 2016. [Online]. Available through: <
https://www.toshibacommerce.com/?urile=wcm:path:/en/home/products/
hardware/self-checkout/self-checkout-6 >. [Accessed on 14th August 2017].
APPENDIX
A. Semi-structured interview
1. What comes in your mind when you think of cost reduction in super markets?
2. What is your opinion on the effectiveness of self-service checkout technology?
3. What major changes have you perceived in customer behaviour when using self-
checkout machines as opposed to manned stations?
4. Is the use of Self-service checkout beneficial in reducing cost?
5. Do customers prefer to use the Self-service checkout?
6. Do customers purchase more at Self-service Checkout Compared to manned
stations?
7. Does it make the process of buying and purchasing faster?
8. What Questions do you have for me?
Thank you very much.
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B. Sample of the online survey
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