Possibilities and critical aspects of customer value creation through technological innovation in the checkout area of physical retail stores

Abstract: Purpose: Exploring the possibilities and critical aspects of mobile self-checkout to enhance value creation and customer satisfaction for physical retailer Research question: How can value be (co-)created between a big box retailer and its customers through a mobile self-checkout solution? Theoretical considerations: After the evaluation of the current literature in value (co-)creation, customer experience and self-service technologies, this research will contribute to these areas with the BOSS-model. This model is the result of the theoretical framework, which incorporates the gathered empirical data in order to become an extension of the existing theory in the previous mentioned area. Methodology: Considering the rather explorative nature of this research a qualitative research approach will provide the empirical data needed. The large retailer IKEA exemplifies as case study for this research and the platform to conduct in-depth interviews with both its employees and customers. The perspective of external experts supplements this multi-perspective approach in the field of value (co-)creation and customer experience in the retail environment. Conclusion: The main finding of this thesis is, that mobile self-checkout solution is perceived as beneficial by all parties involved. Based on the ratio approach between benefits and obstacles the customer is willing to do more by themselves (e.g. scanning and payment) in order to enjoy the benefit of being faster. In addition, customer perceives more freedom when they adapting to a mobile self-checkout solution, since they have the feeling of being in control. Furthermore, the customers defined using a mobile self-checkout as joyful and increase of shopping experience. However, retailers need to reflect upon customer’s possible prior experiences, sociodemographic characteristics and ethical aspects when implementing a mobile self-checkout system. If the retailer can meet the previously mentioned customer, mobile self-checkout can be considered as the coalescent point where the retailer and customer meet to co-create value.