Understanding Customer Value in Technology-Enabled Services: A Numerical Taxonomy Based on Usage and Utility

Abstract

Use of technologies in service encounters can enhance service delivery and increase customer satisfaction in services. Our research develops a numerical taxonomy that provides a deeper understanding of usage and value of customer-facing technology-based innovations in the U.S. restaurant industry. In this study, utility is a proxy for intrinsic customer value. Usage was estimated by past visits to restaurants and utility was calculated by using a specific type of discrete choice experiment known as Best-Worst (or max-diff) experiment. We offer insights for service strategy technology choices and customer value in service delivery systems research and practice. Furthermore, we advance service science by discussing the inherent management pitfalls of failing to distinguish between technology usage and utility in services.