Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
The trend towards a reduction of human interaction in commerce as a direct result of advances in digital media technologies: a case study of the grocery retail industry and self-serve checkout in Yakima, Washington.
Gas Station:Self Serve & Pay at the Pump Perceived Advantage (Customer Gratification): Speed Savings Privacy
Banking:ATM (Automated Teller Machine) Perceived Advantage (Customer Gratification): Eliminate waiting in line 24hrs access Privacy
Travel:Ticket Kiosks Perceived Advantage (Customer Gratification): Eliminate waiting in line Convenience Privacy
Operational Definition UPC(Universal Product Code): A universally applied code consisting of a series of 12 vertical bars affixed to consumer products or inventory items. This code is consistently readable at a variety of angles via a code scanner. The code includes information on the product’s origin, content, and pricing. The first six digits refer to the company, and the following five digits refer to that company’s particular product. There is a final “check digit” to complete the twelve digit code.
Operational Definition Grocery Industry:“This industry comprises establishments generally known as supermarkets and grocery stores primarily engaged in retailing a general line of food, such as canned and frozen foods; fresh fruits and vegetables; and fresh and prepared meats, fish, and poultry.” Adapted from U.S. Census Bureau, Current Business Reports, Series BR/02-A, Annual Benchmark Report
Grocery stores employ in excess of three million employees(Budd and McCall, 2001).
“The consumer makes an average of 2.2 visits to the supermarket weekly, including 1.7 visits to the ‘primary store’” (Seth, 1999)
Grocery Retail Industry 2002 Annual Sales$442,971,000,000second only to Auto sales in U.S. retail economy(U.S. Census Bureau)
Operational Definition Self-serve Check-out: A grocery retail experience in which the customer collects, scans, bags, and pays for their own purchases independent from grocery retail employees.
Groceries:Self-serve Checkout Perceived Advantage (Customer Gratification): Eliminate waiting in line Convenience Privacy
Four Self-serve checkout lanes cost $80,000 to install, require one store employee to oversee and pay for themselves in 12-18 months1 billion self-serve transactions at grocery and other retailers in 2002, double 2001
Express Dairy self-serve, London 1st ATM US New York 1st Scanned item(wrigley’s gum) 1st self-serve checkout(Publix Supermarket, Atlanta) Portable Personal Shopper (Holland) 29% of Grocery retailers offer self serve checkout 1st ATM London UPC adopted 1951 1967 1973 1973 1974 1984 1993 2002
This industry is an “intensely competitive, low margin, high-volume industry.” (Keh, 1998).
“Nationwide a person has to spend $15 on a transaction ‘for the retailer to break even’ when a cashier is involved … in California that break even is closer to $25 per transaction.”
Lower wagesLower shrinkageIncreased inventory management Profit Profit Profit
What would convince you to do the work others normally would do and receive no pay or discount incentive?
Percent Adoption rate of self-serve checkout % of grocery retailers with systems installed 100 90 80 70 Projected 60 50 40 Current 30 20 Introduced 10 2005 1999 1984 1985 1990 2002 Year
“Scientists and engineers had accelerated research and invention to an unbelievable pace, conjuring up machines capable of taking over more and more human roles.”