4 July 2024
Self-Checkout: Does it Impact Store Loyalty?

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Retailers nationwide have introduced self-checkout systems to cut expenses and enhance the shopping experience, hoping to boost store loyalty. Despite their growing popularity, there is a mixed response from brands like Walmart, which is phasing out self-checkouts in certain stores while expanding them elsewhere, reflecting varied impacts on customer allegiance.

Does self-checkout impact grocery store loyalty?



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Self-checkout hurts customer loyalty: study
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In today’s fast-paced world, technology is constantly changing the way we do things, including how we shop. One of the most noticeable changes in recent years is the introduction of self-checkout systems in grocery stores. These systems allow customers to scan and bag their own items, eliminating the need for a cashier. While self-checkout has become increasingly popular, there has been little research on how it impacts customer loyalty. However, a recent study conducted by researchers from Drexel University’s LeBow College of Business sheds some light on this topic.

The findings

The study found that customers are more likely to remain loyal to a grocery store when using regular checkout service, rather than self-checkout. Loyalty was measured by the likelihood of returning to the store in the future. The researchers discovered that the perceived ease of checkout and a sense of entitlement played a role in explaining the effect of loyalty. They also noted that the number of items purchased during the shopping trip influenced how the type of checkout system affected customer loyalty.

The impact of self-checkout

Self-checkout systems offer advantages such as speed, ease of use, and cost reduction for retailers. However, the study found that there are negative consequences of self-checkout that can decrease customer loyalty. These include the extra effort required to checkout and bag purchases, as well as the expectation of being served by the store. Customers who viewed the extra effort in self-checkout as a rewarding experience, however, showed similar levels of loyalty to regular checkout shoppers.

Implications for retailers

The findings of this study can help inform retailers on whether they should install or remove self-checkout systems, as well as how to better manage them to ensure positive customer experiences. For example, retailers could make the self-checkout experience more rewarding by encouraging shoppers to view the extra effort involved as a satisfying experience. By doing so, retailers can improve their self-checkout customers’ overall shopping experience, which in turn will lead to higher customer loyalty.

Future research

While this study focused specifically on grocery store self-checkout systems, there is an opportunity for similar research to be conducted in other retail settings, such as clothing, home improvement, and luxury stores. Additionally, other forms of self-service technologies, such as self-checkout with RFID, scan-and-go apps, smart carts, and self-service kiosks, could be studied to measure customers’ experiences.

In conclusion, while self-checkout systems offer convenience and efficiency, they may have an impact on customer loyalty. By understanding the factors that influence loyalty, retailers can make informed decisions about their checkout systems and provide a positive shopping experience for their customers.

FAQ’s

1. Does using self-checkout affect grocery store loyalty?

Yes, a study conducted by researchers from Drexel University’s LeBow College of Business found that customers are more likely to remain loyal to a grocery store when using regular checkout service, rather than self-checkout.

2. What factors influence the impact of self-checkout on customer loyalty?

The study found that the perceived ease of checkout, a sense of entitlement, and the number of items purchased during the shopping trip all played a role in explaining the effect of loyalty.

3. What are the advantages of self-checkout systems?

Self-checkout systems offer advantages such as speed, ease of use, and cost reduction for retailers.

4. What are the negative consequences of self-checkout on customer loyalty?

The study found that the extra effort required to checkout and bag purchases, as well as the expectation of being served by the store, can decrease customer loyalty.

5. How can retailers manage self-checkout systems to ensure positive customer experiences?

Retailers can make the self-checkout experience more rewarding by encouraging shoppers to view the extra effort involved as a satisfying experience. This can improve overall customer loyalty.

Links to additional Resources:

Nielsen Forbes Retail Dive

Related Wikipedia Articles

Topics: Self-checkout systems, Customer loyalty, Drexel University's LeBow College of Business

Self-checkout
Self-checkouts (SCOs), also known as assisted checkouts (ACOs) or self-service checkouts, are machines that provide a mechanism for customers to complete their own transaction from a retailer without needing a traditional staffed checkout. When using SCOs, customers scan item barcodes before paying for their total shop without needing one-to-one staff...
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Customer Loyalty (The Office)
"Customer Loyalty" is the twelfth episode of the ninth season of the American comedy television series The Office and the 188th episode overall. The episode was written by Jonathan Green and Gabe Miller, and directed by Kelly Cantley. It originally aired on NBC on January 24, 2013. The episode guest...
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Bennett S. LeBow College of Business
The LeBow College of Business (), often referred to simply as Drexel LeBow, is the business school of Drexel University in Philadelphia, Pennsylvania. The school offers undergraduate, graduate, and doctoral programs in business administration to nearly 4,000 students and encompasses an alumni network of more than 40,000 business professionals.
Read more: Bennett S. LeBow College of Business

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