Results to the 2014 National Technology Readiness Survey, Technology Readiness, e-services growth, Omni-channel behavior, and Channel Foraging.

1. A Services Landscape Transformed by Technology:
Findings from the 2014 National Technology
Readiness Survey
Presented to Frontiers in Services 2014
Charles L. Colby,
Chief Methodologist & Founder,
Rockbridge Associates, Inc.
For info, contact:
Charles Colby
ccolby@rockresearch.com
A. Parasuraman,
Professor, Marketing
University of Miami
For info, contact:
Dr. A. “Parsu” Parasuraman
parsu@miami.edu

2. Foreshadowing… the last slide
Photo source: www.buzzaboutbees.net

3. Topics Covered Today
Technology Readiness
Fastest growing e-services
TR beliefs behind their growth
Foundational technologies behind their growth
Omni-channel behavior and “Channel Foraging”
Implications for management

4. Our Research Program and The TR
Construct

5. Our Research Program
National Technology Readiness Survey
– Authored by Parasuraman and Rockbridge
– Replicated in 1999, 2000, 2001, 2002, 2004, 2005/6, 2007, 2009,
2012, 2014
TRI Scale licensed to over 120 scholars in 30 countries,
including Germany, Turkey, China, UK, Brazil, India,
Malaysia, Philippines, Canada, South Africa
– Contexts include financial services, retailing, communications,
travel, e-government, healthcare
Co-sponsored by the Center for Excellence in Service

6. What is Technology Readiness? (TR)
 TR refers to people’s propensity to embrace
and use new technologies for accomplishing
goals in home life and at work
 TR reflects an overall state-of-mind; it is not a
measure of competence
 It describes the person, not the technology
 Measured by the Technology Readiness
Index (TRI)

7. Inhibitors
Contributors
Components of Technology Readiness
Optimism
Innovativeness
Discomfort
Insecurity
Technology
Readiness

8. TRI 2.0: A Multi-Item Measure
The Technology Readiness Index was first
published in the JSR in 2000
TRI 2.0 will be published in JSR this year*
The latest scale version:
– 16 agreement scaled attributes
– 4 sub-scales for measuring individual dimensions
of TR
– A segmentation scheme classifies individuals into
five distinct types
*“An Updated and Streamlined Technology Readiness Index: TRI 2.0”,
A. Parasuraman and Charles L, Colby, Journal of Services Research,
published online June 22, 2014

9. TRI 2.0 (16 item index)
• Give advice
• First to adopt
• Self reliant
• Keeps informed
• People too dependent on
tech
• Technology distracts
• Tech lowers relationship
quality
• Distrust of virtual venues
• Distrusts tech support
• Tech support unhelpful
• Tech not designed for us
• Manuals are too
technical
• Better quality life
• Freedom of mobility
• Control
• Personally productive
Optimism Discomfort
InnovativenessInsecurity
Technology
Readiness

10. Distribution of TRI 2.0 (2014 Study)

11. TRI 2.0 Includes a Segmentation
% of
population
Motivators Inhibitors
TRI
Optimism Innovative Discomfort Insecurity
Explorers 27% 4.6 4.1 2.3 2.6 3.9
Pioneers 20% 4.3 4.0 3.7 4.1 3.1
Skeptics 27% 3.7 3.1 2.8 3.4 3.1
Hesitators 14% 4.1 2.1 3.2 3.6 2.8
Avoiders 13% 2.6 1.8 3.8 4.2 2.1
Total 3.9 3.2 3.0 3.5 3.2

12. Profile of TR Segments (2014 Data)
Owns
smart
phone
#
gadgets
#
eServices
Demographic
Correlates
Explorers 79% 8.1 18.1 Younger, Male, Tech jobs
Pioneers 77% 8.1 16.2
Younger, Male, Ethnically
diverse, Foreign born, Tech jobs
Skeptics 62% 6.6 14.5 Mirrors General Population
Hesitators 52% 5.9 13.2 Older, Female, Retired
Avoiders 33% 4.9 8.8
Older, Female, not Diverse,
Less educated, Retired
Total 64% 7.0 14.9

13. 2014 Technology Readiness Survey

14. Methodology
Nationally representative survey of 1230 U.S.
adults
Frame: online panel from 2 reputable
providers
Weighted to match U.S. Census
Margin of Error +/- 3%
Limitations:
– Excludes “offline” population
– Uses an online panel

15. Fastest Growing e-Services
2009 to 2014

16. Fastest Growing e-Services
www.rockresearch.com
Low Penetration, High Growth High Penetration, High Growth
Low Penetration, Low Growth High Penetration, Low Growth
Medical tests

17. E-Service Categories (Based on Factor Analysis)
Category Growth* Services
Health 155% Checked tests online, communicated with professional
Small Purchases 46% Purchased items <$10, $10 to $100
Entertainment 37%
Download movies, download songs, streaming music, live TV,
download books, live TV, live radio, video call, watch video
C2C 20% Sold to another consumer, bought from another
Big Purchases 16% Travel, investments, items >$100
Financial 15%
Online banking, moved funds online, checked utility account,
managed credit card, bill paying, paid bill at provider website
Government 0%
Visited federal site, did federal business, visited state/local site,
did state/local business
News/research 0% Read news/mag online, researched health info
Learning -5% Online course, visited membership org site
*Growth from 2009 to 2014; not all items tracked in 2009.

18. Technology Readiness Beliefs behind Adoption
Correlation of TR Dimension with # of Activities
Category Opt Inn Dis Ins TRI Influencers
Health .06 .09 0.03 ns 0.03 ns 0.04 ns Not important
Small Purch .22 .21 -.15 -.15 .25 All 4 beliefs
Entertainment .35 .46 -.20 -.19 .42 All 4 beliefs
C2C .20 .23 -0.05 ns -.08 .20 Motivators
Big Purchases .24 .25 -.09 -.10 .24 Motivators
Financial .25 .26 -.17 -.10 .27 Motivators & Disc
Government .20 .20 -.07 -0.05 ns .18 Motivators
News/research .18 .13 -.18 -0.04 ns .18 Opt & Disc
Learning .16 .20 -.08 -.10 .19 Motivators

19. Foundational Technologies behind
Services Growth

20. 18%
29%
36% 36% 37% 40%
46%
51%
60%
66%
71%
78%
96%
Key Technology Growth and
Projected Penetration in 2016
2012
2014
2016 projected
Foundational Technologies

21. Portable GPS
Portable video player
Portable music player (MP3)
Digital video camera
Digital point and shoot
camera
eBook reader
Usage of Applications on Single Function
And Multiuse Devices
Multi-function device Both Standalone device
The Ubiquitous Do-it-all Device
14%
22%
18%
16%
13%
20%

22. Omni-Channel Service Behavior

23. 2010200820062004200220001998
The Not-So Old Days

24. The Changing Consumer Journey
20142012

25. Types of Shopping Journeys ($50 or more)
In-person
Only
Shoppers,
29%
Superficial
In-person
Shoppers,
17%
Methodical
High Touch
Shoppers,
16%
Simple
Digital
Shoppers,
20%
Analytical
Digital
Shoppers,
16%
Phone
Orderers, 3%
Store
checkout:
62%Online
checkout:
36%2%
6%
Checked out with smartphone
SHOP NOW
25 %
OFF

26. Half of Purchases are Complex
Uni-Channel (52%)
In-person Only (29%): Offline
channels, store visit, store
purchase
Simple Digital (20%):
Research & order online,
ship to home or work
Phone Orderers (3%):
Completely by phone or
smartphone
Omni-Channel (48%)
Superficially In-Person (17%):
research online and offline,
store purchase
Methodical High-Touch (16%):
intense info search in multi-
ple venues, store purchase
Analytical Digital (16%):
intense info search, store
visits, online purchase

27. Technology Readiness Correlates
Pioneers [high on motivators + high on
inhibitors] are more likely to engage in
methodical high touch and analytical digital
purchase processes
Avoiders [least techno-ready] and Hesitators
[optimistic + high on inhibitors] are more likely
to engage in in-person only purchases
Explorers [most techno-ready] tend to prefer
online channels

28. Bank Channel Convergence
Branch
Mobile
Call Center
Online
1 2 3+
Market 21% 33% 46%
Explorers 16% 26% 58%
Pioneers 18% 25% 57%
Skeptics 19% 40% 42%
Hesitators 23% 47% 30%
Avoiders 41% 31% 28%
Number of Channels
Used
(Self-reported)

29. Implications

30. Service Transaction of the Future?
Channel Foraging:
“To search about; seek; rummage; hunt”

31. Questions for Service Managers
How techno-ready are our customers?
How do we provide information, purchase capability
and servicing across multiple platforms?
Do channels meet the needs of all TR segments?
Do we offer maximum flexibility for fulfillment? (Ship
anywhere, pick-up anywhere?)
How do physical locations fit into our service model?
How do we prevent customers from taking advantage
of expensive bricks & mortar channels (look but not
buy)?
How do we get our message in front of consumers who
use a wide variety of info sources in small doses?

32. Questions for Researchers
When does TR matter for a technology-based service?
When do different TR components matter?
Can we forecast demand using TR as a proxy of
innovation?
How is the service purchase and usage process
changing? Is “channel foraging” truly the future?
What is an optimal “show rooming” solution (that
charges customers for using physical channels)?
What will be the impact of emerging technologies (e.g.,
robotics) on services behavior?
Is the management and operation of services
businesses taking on the same complexity as customer
behavior, augmented by technology? Should it?

33. www.rockresearch.com
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