Innovation in the Spanish retail sector: Analyzing customers' acceptance of a Scan and Go tool

Dirección y Organización 80 (2023) 71-87 www. r e v i s t a d y o. c o m 71 The retail sector has not been oblivious to these developments. According to Wilson (2014), the retail sector investment in SRT was projected to exceed 190 billion euros by 2015. The interest of store managers in SRT is driven by the multiple benefits that their businesses can derive from these new technologies (Pantano & Naccarato, 2010). For shopping establishments, the implementation of SRTs leads to considerable savings in staff costs and increased efficiency (Grewal, Levy, & Kumar, 2009; Roy et al., 2017). However, authors such as Verhoef et al. (2009) argue that it is necessary to take into account the impact of these new technologies on workers' morale and, therefore, on their productivity. With respect to customers, SRTs are able to improve shopping experience noticeably through new services and features (Hoffman & Novak, 2015). According to Renko and Druzijanic (2014), this entails an improvement in the level of service offered to customers and an increase in sales. Along these lines, Kim and Kim (2008) have found evidence that customers who enjoy their shopping experience make more purchases. The importance of customers' shopping experience should not be underestimated. Michelli (2006) argues that the success of companies like Starbucks comes from presenting customers with an attractive and differentiated shopping experience. A report by Badgett, Boyce, and Kleinberger (2007) identifies shopping experience as a key factor that companies must take care of in order to foster customer Antonio Lorenzo-Espejo (1) [email protected] ORCID: 0000-0002-0404-5594 María-Luisa Muñoz-Díaz (1) [email protected] ORCID: 0000-0003-4676-8667 José Guadix (1) [email protected] ORCID: 0000-0002-3221-5095 Jesús Muñuzuri (1) [email protected] ORCID: 0000-0001-5784-4165 (1) Departamento de Organización Industrial y Gestión de Empresas II, Escuela Técnica Superior de Ingeniería, Universidad de Sevilla, Cm. de los Descubrimientos, s/n, 41092 Seville, Spain Innovation in the Spanish retail sector: Analyzing customers’ acceptance of a Scan&Go tool Antonio Lorenzo-Espejo, María-Luisa Muñoz-Díaz, José Guadix, Jesús Muñuzuri https://doi.org/10.37610/dyo.v0i80.644 Recibido: 5 de Septiembre de 2022 Aceptado: 12 de Octubre de 2022 Abstract Smart retail technologies are making their way into stores at a fast pace, as managers identify them as a great opportunity to save costs and attract clients into their shopping establishments. However, customers’ acceptance of such innovations cannot be taken for granted. Precisely, managers’ concerns about their clients’ perception of in-store innovations are one of the main obstacles for the spread of smart retail technologies. In this article, the results of a survey completed by 2,010 customers concerning the introduction in the Spanish retail sector of a self-checkout system known as Scan&Go are analyzed. This tool allows customers to use their smartphones to scan the desired products, which are automatically added to their tab. In order to finish the purchase and leave the store, clients must simply show a code generated by the app to an employee. The paper analyzes and discusses the results of the survey, mainly the respondents’ usage intention of the tool, focusing on aspects such as determining factors discussed in the literature, consumption habits and socio-economic background, and studying their influence on customer acceptance. Evidence of a positive response from customers to the introduction of the Scan&Go tool in Spanish retail establishments is found, as well as a target customer profile which can serve as a starting market segment for the deployment of the system. Keywords Smart retail technology; Scan&Go; self-checkout; retailing; customer acceptance. 1. Introduction and background The technological development experienced in recent decades has led to the emergence of smart retail technology (SRT). These technologies integrate an interactive sales system that offers innovative services to customers through interconnected smart devices (Roy et al., 2018), drawing upon technological advancements such as mobile internet, radio frequency identification (RFID) tags, facial recognition, biometric sensors, artificial intelligence (AI) or the Internet of Things (IoT), which are drastically transforming the way people carry out their daily activities. 72 Dirección y Organización Lorenzo-Espejo et al / Dirección y Organización 80 (2023) 71-87 https://doi.org/10.37610/dyo.v0i80.644 loyalty towards their brands and services. Furthermore, offering customers the chance of using of mobile-based options for checkout and payment has been shown to lower the overall store price image (Falk et al., 2016). Additionally, it must be noted that one of the elements on which firms that excel at innovation rely is embedding a social purpose in their corporate culture and channelling resources to the development of innovations that can help solve specific social problems (Pfitzer, Bockstette, & Stamp, 2013). Taking into account the events in recent months due to the COVID-19 pandemic, the modification of existing purchasing processes that derives from the use of Scan&Go would contribute value to the society providing a novel solution in Spain to improve social distancing. This new technology could become a "doing well by doing good" (DWDG) innovation. DWDG innovations refer to, amongst other things, the implementation of modifications of existing processes by firms that create value for society by providing novel and effective solutions to social problems, and value for the firms by enhancing their economic and social performance (Varadarajan & Kaul, 2018). In this sense, Amazon has recently announced its first in-store test of the Amazon Dash Cart (Amazon, 2020), a smart shopping trolley which can also help decrease social interaction at supermarkets. However, many retailers remain hesitant to implement SRTs. This is mainly due to uncertainty about customer acceptance of new systems. In general, initial customer resistance to change can be expected, as is the case with most technological innovations (Laukkanen, 2016; Mani & Chouk, 2017). Given the rapid pace of technological innovation at the present time, caution should be exercised in the search for applications of these advancements to the retail sector. Since the beginning of the 21st century, there has been a significant growth in the importance of the role played by consumer dissatisfaction in businesses (Pascual Nebreda, Díez Martín, & Blanco González, 2020). Pantano and Viassone (2014) warn that technological innovations in establishments only make sense if they respond to both consumer preferences and the needs of the businesses. Similarly, Mady (2011) suggests that research on technological innovations in retailing should be focused on whether consumers want to use the technologies in the first place. These findings oppose managers’ assumption that all technological additions are a clear improvement for the retailing process from a customer standpoint. Additionally, the implementation of undesired technologies in the retail context can lead to frustration amongst consumers, which, in turn, can give rise to unfair and unhelpful behaviours (Guchait & Namasivayam, 2012). Still, customer frustration provides managers with the opportunity to offer solutions to clients with maladaptive behaviour, leaving them with the positive feeling that their problems have been fairly addressed by the retailer (Van Steenburg, Spears, & Fabrize, 2013). In view of the reasons above, it is essential to understand customers and learn about their preferences and their concerns regarding technological innovations in the retail sector. Furthermore, learning how different types of customers value each aspect of their shopping experiences can help diversify the store clientele, increase the number of customers and retain current clients (Reynolds, Ganesh, & Luckett, 2002). Gao and Bai (2014) and Inman and Nikolova (2017) highlight the lack of research in this area, while Claudy, Garcia, and O'Driscoll (2015) suggest that this lack of attention can lead to the continued development of new technologies without a proper understanding of the decisionmaking mechanisms that lead potential customers to accept or reject them. The main challenge for researchers in the field of technological innovation is to understand the driving forces behind customer acceptance of new technological systems, according to Venkatesh and Davis (2000). One of the tools that provide better results in this regard are technology acceptance models (TAM), which can explain and predict to a large extent the attitude of consumers towards new technologies (Venkatesh, 1999). In the academic literature, a large number of studies using TAM models can be found concerning the acceptance of new technologies. The analysis of this literature helps identify a series of factors that, according to researchers, influence significantly the attitude of individuals towards technological innovations. Some of the determining factors considered by researchers are the perception of ease of use and perception of usefulness (Davis, 1989; Davis, Bagozzi, & Warshaw, 1989); the perceived enjoyment (Gao & Bai, 2014); and the perception of risk (Roy et al., 2018). Nonetheless, several other factors can influence the attitude of customers towards SRTs. In particular, regarding self-service technology, Collier et al. (2015) find that situational variables such as the order size, the tolerance for wait-times, the convenience of the location and the presence of employees have a significant influence on the customers’ usage intention. Additionally, Mukherjee, Smith, and Turri (2018) detect that the positive effect of RFID-based smart fitting rooms on purchase intention and customer satisfaction is conditioned by the quality reputation of the brand. This paper seeks to gain a better understanding of customer perception of SRTs in the retail sector through the case of a Scan&Go tool developed by a Spanish company, Comerzzia. The company is trying to implement this self-checkout system in several supermarket chains and small shops nationwide. A self-checkout system can be defined as a set of 73 Dirección y Organización Lorenzo-Espejo et al / Dirección y Organización 80 (2023) 71-87 https://doi.org/10.37610/dyo.v0i80.644 integrated digital technologies that try to eliminate the need for customers to go through a traditional till¸ operated by a worker, when making purchases in a store. In order to analyze the response of potential clients to the developed system, we use the results of a questionnaire administered to 10,000 individuals during the month of May of 2019, obtaining 2,010 valid responses. This broad sample allows us to draw conclusions about the purchasing habits of Spanish customers, their acquaintance with new technologies in shopping establishments, the factors that influence their acceptance of innovations, their intention to use the proposed tool and their assessment of its functionalities. Therefore, in this article we attempt to give a response to the following research questions: Research question no. 1: How do the main factors determining consumers’ acceptance of technological innovations affect customers’ acceptance of a self-checkout system? RQ2: How do the demographic and economic features of customers affect their acceptance of a self-checkout system? RQ3: How do the consumption habits and routines of customers affect their acceptance of a self-checkout system? RQ4: How do customers rate the features available in self-checkout systems? The remainder of the article is structured as follows. Section 2 provides a brief description of the Scan&Go system. Section 3 presents the methodology followed for the design and implementation of the questionnaire and for the analysis of the responses. In Section 4, the results of the questionnaire are gathered and interpreted. Section 5 summarizes the conclusions drawn from the analysis and presents the limitations of the study and future lines of research. Finally, the references used in the preparation of this work are provided. 2. Description of the Scan&Go tool Scan&Go is a self-checkout system that seeks to improve customers’ shopping experience in establishments through innovative features. The Scan&Go system developed is based on an app that allows customers to scan the products available in the store using their mobile phone cameras. This way, the selected items are added to the tab and it is not necessary to scan them at the exit of the store, thus saving the waiting time in queues for customers. In order to carry out the checkout, customers must simply show a code generated by the app to one of the employees in the shopping establishment. Outside Spain, big retailers like Walmart or Tesco have tested the Scan&Go system in their stores. According to Inman and Nikolova (2017), Walmart implemented Scan&Go in 200 of its stores, drawing from this experiment that customers found difficulties in learning to use their app. Nevertheless, this test was carried out between 2013 and 2014, and an increase in mobile phone use skills can be expected from most customers since that time. Additionally, mobile technologies have improved drastically in recent years, increasing the agility and ease of use of the system. The Spanish retail sector is not foreign to self-checkout systems. Multiple supermarket chains and department stores use self-payment tills in their different variants (with barcode or RFID tag reading). However, the experience with Scan&Go systems is very limited is Spain. Carrefour, a French retailer with a strong market presence in Spain, installed Scan&Go systems in a small number of stores in the early 2010s, but the initiative has not spread to other establishments since then. The aim is to develop a mobile-based app that can be used in different supermarket chains and small establishments with a relatively low investment. This would allow customers who wish to use the application to accelerate their purchases, avoiding waiting times in queues. These waiting times can lead to frustration amongst customers, causing them to postpone the purchase or, at worst, decide to switch to another store. Moreover, the Scan&Go tool seeks to improve the shopping experience and foster customer loyalty by offering various functionalities before, during and after the purchasing process. 3.Methodology As mentioned above, an online questionnaire has been used in an attempt to obtain data from potential customers regarding Scan&Go and new technologies in shopping establishments. To this end, a survey has been designed, containing 60 questions that have been divided into 3 segments and 16 sections as shown in Figure 1. 74 Dirección y Organización Lorenzo-Espejo et al / Dirección y Organización 80 (2023) 71-87 https://doi.org/10.37610/dyo.v0i80.644 Figure 1 Survey structure. Additionally, various demographic and social characteristics of those surveyed have been collected, such as gender, age, level of educational attainment, employment status and monthly income in the household. Therefore, the survey contains all the questions and respondent data required to answer the research questions posited in this article. It should be noted that most of the questions in the survey are of stated preference and have been formulated on a Likert scale ranging from 1 to 7, where scores indicate the degree of agreement or disagreement with a statement. On the other hand, it is necessary to point out that, despite not having been able to personally experience the shopping process with Scan&Go, the respondents had to watch a video before completing the questionnaire. This video included an explanation of the tool and a demonstration of the improvements to the purchasing process derived from its use. During the month of May of 2019, the questionnaire was distributed online to a panel of 10,000 respondents selected according to the specifications in terms of region of origin, age and gender set by the developers of the tool, seeking a faithful representation of the Spanish customer market to which Scan&Go is directed. 2,010 valid responses were obtained, which is equivalent to 20.1% of the total number of questionnaires administered. This sample presents a sampling error of +/-2.2%, considering random sampling, with a confidence level of 95% (Z=1.96) and in the case of maximum variability (p=q=0.5). 4. Results and discussion In this section a summary of the results of the survey is presented, as well as the main findings obtained from the analysis of the responses. 4.1. Influencing factors Given the importance of perceived ease of use, perceived usefulness, perceived enjoyment and perceived risk in the shaping of customers' attitudes towards technological innovations and SRT, according to a large number of authors (Davis, 1989; Davis, Bagozzi, & Warshaw, 1989; Gao & Bai, 2014; Roy et al., 2018), it is appropriate to ask respondents about each of these aspects. This will shed light on the actual impact of these factors in the case of a self-checkout system implementation, answering RQ1. Thirteen questions have been included in the questionnaire to obtain information about specific aspects of the four factors mentioned above. To determine their influence on usage intention, Pearson correlation coefficients have been calculated for the relations between the results obtained for these questions and the Scan&Go usage intention question. This parameter allows us to characterize the relationship between two variables quantitatively. For each calculated coefficient, its significance is calculated using a bilateral probability test and a confidence level of 99%. Using these parameters, all of the coefficients turned out statistically significant. Table 1 shows Pearson correlation coefficients, which quantify the relationship between the results of usage intention and each potentially determining factor according to the relevant literature. 75 Dirección y Organización Lorenzo-Espejo et al / Dirección y Organización 80 (2023) 71-87 https://doi.org/10.37610/dyo.v0i80.644 Table 1 Pearson correlation coefficients of factors and usage intention. Firstly, it should be noted that the Pearson correlation coefficients of the results of the usage intention question with the results of the questions referring to the perceived usefulness and perceived enjoyment factors are greater than 0.65. This implies that there is statistical evidence of a strong correlation between these factors and the usage intention of the technology. In other words, it can be deduced from the observed data that respondents who think Scan&Go is useful and would enjoy using it indicate a greater intention to use the tool. However, there is no evidence of a strong correlation between the results of the usage intention question and those of the questions relating to the factors of perceived risk and perceived ease of use. Notably, in the case of the three questions that reflect the perceived ease of use of those surveyed, the coefficients have been lower than 0.5. Therefore, RQ1 is answered through this analysis: perceived usefulness and perceived enjoyment have a greater impact on the acceptance of self-checkout systems, such as Scan&Go, than perceived risk and perceived ease of use. These results could prove very useful for the design of new tools in the retail sector, motivating developers to enhance features that affect in a positive way the factors of perceived usefulness and perceived enjoyment, which, in light of the results, have the greatest influence on the usage intention of potential customers. 4.2. Scan&Go usage intention Consecutively, the acceptance of the tool by potential customers must be analyzed. In order to obtain this data, respondents have been asked to indicate their degree of agreement with the statement "If Scan&Go were available in stores, I would use it", by means of the Likert scale. This way, we are able to obtain a measure of the respondents’ usage intention towards the Scan&Go tool. The percentage of respondents who selected each option in this question is shown in Figure 2: 76 Dirección y Organización Lorenzo-Espejo et al / Dirección y Organización 80 (2023) 71-87 https://doi.org/10.37610/dyo.v0i80.644 If we add up the percentages of potential customers who have indicated a degree of agreement of 5, 6 and 7, we can state that the acceptance degree of Scan&Go by those surveyed is 60.1%. Regarding the frequency of use, 56.8% of those surveyed showed to be in favor of using the tool frequently. In fact, 46.3% of respondents indicate that they are willing to use Scan&Go for all their purchases. From the results obtained regarding the usage intention, it can be deduced that the proposed Scan&Go system could be successfully introduced in Spanish stores. However, it is necessary to delve deeper into the position of potential customers with respect to the tool and the various alternatives for its implementation. 4.3. Target customer profile One of the main objectives of this study is to find the profile of social and demographic characteristics of potential customers with a high degree of acceptance of Scan&Go. Determining a target customer profile is essential for the implementation of the system in stores, a process that must be carried out gradually in an attempt to minimize the possible initial impact on the retailer's market share. Such customers could be used as pilot users with two objectives in mind: simplifying the implementation of the system by offering the product first to users with a higher degree of acceptance of the technology and helping to promote the system amongst other customers, who may initially be more reluctant to use Scan&Go. In order to find the defining characteristics of this target customer profile, RQ2 must be answered. Thereupon, an analysis has been made of the relationship between the different socio-demographic aspects asked about in the questionnaire and the usage intention of Scan&Go. Figure 3 and Figure 4 show the average usage intention indicated by respondents according to their sex and work status, respectively. The results do not indicate that there are significant differences in the acceptance of Scan&Go according to these aspects. A very small difference can be identified depending on the employment status. Regarding the respondents’ sex, only a slight variation can be identified between the usage intention of men and women, of less than 2 percentage points in the acceptance degree. This coincides with the study by Davis, Lang, and San Diego (2014), which shows that, while two different male and female shopping behaviours can be found, these are not determined solely by the customers’ biological sex. Figure 2 Scan&Go usage intention. Figure 3 Usage intention depending on the respondents’ sex. 77 Dirección y Organización Lorenzo-Espejo et al / Dirección y Organización 80 (2023) 71-87 https://doi.org/10.37610/dyo.v0i80.644 Greater differences can be found depending on the respondents’ age ranges. Participants were classified into three age groups: 18-30, 31-45 and 46-60. Figure 5 shows the average usage intention for the respondents in each of these age segments. Figure 4 Usage intention depending on the respondents’ work status. Figure 5 Usage intention depending on the respondents’ age ranges. The acceptance degree of Scan&Go is 61.4% for respondents between 18 and 30 years of age, 60.83% for respondents between 31 and 45 years of age and 57.45% for respondents between 46 and 60 years of age. Therefore, a difference of almost 4 percentage points can be observed in the degree of acceptance between the younger and older groups. However, in principle one would expect even greater variation between these groups, as the Scan&Go system is By analyzing the usage intention of Scan&Go in relation to the respondents' educational attainment, it is also possible to identify clear variations. In particular, a different trend is observed between respondents with basic studies and those with medium or higher studies, as can be seen in Figure 6. based on a smartphone application, a tool more frequently used amongst the younger demographic. 78 Dirección y Organización Lorenzo-Espejo et al / Dirección y Organización 80 (2023) 71-87 https://doi.org/10.37610/dyo.v0i80.644 Figure 6 Usage intention depending on the respondents’ levels of educational attainment. Table 2 shows the acceptance degrees for respondents according to their level of educational attainment. It can be seen that the degree of acceptance for respondents with a medium or higher level is almost 4 percentage points higher than that of respondents with basic educational attainment. Table 2 Acceptance degree depending on the respondents’ levels of educational attainment. It is also possible to find substantial differences in the acceptance degree of Scan&Go depending on the average weekly household expenses of the respondents. This information is very relevant, as many medium and largesized stores keep records of their clients' spending. Therefore, average spending should be one of the characteristics that define the target customer profile. Figure 7 shows the usage intention depending on the average weekly household expense on food, beverages, cleaning products, etc. of the respondents. Figure 7 Usage intention depending on the respondents’ weekly household expenses. Significantly different trends can be seen from one range of weekly spending to another. By looking at Table 3, it can be concluded that respondents with a weekly expense of more than 100 euros show a significantly higher acceptance of the Scan&Go tool than those with an expense of less than 100 euros. This difference reaches 7.5 percentage points if we compare the acceptance degrees for the respondents who spend from 51 to 100 euros per week and those who spend from 101 to 150 euros per week. 79 Dirección y Organización Lorenzo-Espejo et al / Dirección y Organización 80 (2023) 71-87 https://doi.org/10.37610/dyo.v0i80.644 Table 3 Acceptance degree depending on the respondents’ weekly household expenses. The respondents' usage intention is then assessed according Figure 8 Usage intention depending on the respondents’ monthly household income. to the monthly income level in their households, as shown in Figure 8. Figure 8 shows a large disparity between the usage intention of one category and another, which can be verified by obtaining the acceptance level for each income range, as reflected in Table 4. Table 4 Acceptance degree depending on the respondents’ monthly household income. Thus, it can be seen that there is a big difference between the acceptance degree of Scan&Go for respondents with a monthly household income of more than 5,000 € and the rest of the respondents. This difference ranges from 13.2 percentage points when compared to the acceptance in the 1,801-3,000 € income segment, to 19.3 percentage points when compared to the acceptance in the 901-1,800 € income segment. Having analyzed the relationship between the demographic, social and economic characteristics of the respondents and their usage intention of Scan&Go as a response to RQ2, a target customer profile can be elaborated. The following characteristics shape this profile: 1. 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