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What is Utilitarian Expectations

Handbook of Research on Management and Strategies for Digital Enterprise Transformation
When customers consume a product or service, they focus on the utilitarian and functional aspects of the consumption, i.e., the attributes of the product or service that directly apply to the goals or outcomes it provides. For instance, easy check-ins and luggage delivery are utilitarian functions when customers stay at a hotel, and they expect these types of goal-oriented needs be satisfied. In contrast, when customers focus on experiential expectations, they focus on the interactive, experiential, sensory aspects of the service, e.g., interacting with the service staff or trying out recommended local restaurants.
Published in Chapter:
Digital Transformation and Strategic Management of Frontline Services With Robotic Technologies
Rebecca Jen-Hui Wang (Lehigh University, USA) and Nicola A. Chomiak (The deFIANT, USA)
DOI: 10.4018/978-1-7998-5015-1.ch003
Abstract
Robots and artificial intelligence have been touted as vehicles for generating operational efficiency and cost savings for a business enterprise. Specifically, automated, digitalized frontline services have the potential to streamline an enterprise's service efficiency, alleviate burdens from its human employees, and enhances its relationships with the customers. Besides these cost and functional benefits, this chapter posits that robotic services can garner customers' preferences and satisfaction, that is, there are situations in which robotic services are not only a cost-saving option, but they are even preferred by an enterprise's customers. Specifically, two important drivers—social distancing and utilitarian expectations of services—can lead to customers' choosing robots over humans. This chapter concludes that deploying and managing digital and automation technologies, such as service robots, in frontline services can not only transform an enterprise's operations but also enhance its customer management and service expectations.
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