Master’s Degree Project in Innovation and Industrial Management Improve Customer Engagement by Implementation of Service Robot A case study in collaboration with Husqvarna Group Authors: Jiao Yang & Xiaojuan Liao Graduate School Supervisor: Asst. Prof. Evangelos Bourelos School of Business, Economics and Law University of Gothenburg Improve Customer Engagement by Implementation of Service Robot A case study in collaboration with Husqvarna Group Written by Jiao Yang & Xiaojuan Liao June 2021 © Jiao Yang & Xiaojuan Liao School of Business, Economics and Law, University of Gothenburg Vasagatan 1, P.O. Box 600 SE 405 30, Gothenburg, Sweden All rights reserved. No parts of this thesis may be reproduced without the written permission of the authors. Abstract Background and Purpose: Customer engagement has strategic importance for firms since it enhances the performance of the firm in various aspects. Nowadays, firms are employing advanced technology to increase customer engagement. Infused by the development of artificial intelligence technology, frontline service robots are widely implemented by service providers. This study aims to explore the relationship between the frontline service robot and customer engagement. Methodology: An extensive literature review of previous academic research has been utilized and a conceptual framework is developed. The quantitative research method is used in this study with a deductive approach based on a field social survey at Husqvarna concept store. Findings and Conclusions: The results of this study emphasized the importance of the feeling of customers after they interact with the service robot and found a positive relationship between it and the perceived innovativeness, service experience, customer satisfaction, and customer engagement. Keywords: Frontline service robots, Customer engagement, Perceived innovativeness, Service experience, Customer satisfaction, Asset-builder business Acknowledgments Conducting this research has been a journey for both of us. It has been challenging but it is a rewarding and invaluable experience of our master’s study. We have learned a lot and received great support from many people. Here, we would like to express our sincere gratitude to everyone who helped us along this journey. Firstly, we would like to say thanks to our supervisor Evangelos Bourelos at the School of Business, Economics and Law at the University of Gothenburg, for guidance, feedback and recommendations in our research process. He answered our questions, encouraged and inspired us when we felt lost in the journey. Secondly, we want to thank our supervisor Divya Parthasarathy at Husqvarna Group. She gave us the opportunity to conduct this thesis project in collaboration with the Husqvarna Group and supported us through the process. We are also very grateful to Husqvarna Group for supporting us to conduct a field survey even in the case of the COVID-19 pandemic, which enables us to collect very reliable first-hand data. Thirdly, we would like to thank all the interviewees who have donated their valuable insights and precious time. Moreover, we would like to express our appreciation to all the respondents for spending their precious time filling out our survey. Lastly, we are also very grateful to our dear classmates and friends for supporting and encouraging us along this journey. In several discussions, we got a lot of feedback and suggestions, so we could improve our work. During the long process of the thesis, the two authors cooperated and encouraged each other to complete the thesis together. May our friendship last forever. Table of contents Table of contents Introduction 1 1.1 Background 1 1.2 Frontline Service Robot 3 1.3 Presentation of the Pepper in Husqvarna Concept Store 4 1.4 Problem discussion 6 1.5 Purpose and research question 7 1.6 Delimitations 7 1.7 Disposition 8 Literature review 10 2.1 Introduction to literature review 10 2.2 Customer engagement 11 2.3 Service experience 14 2.4 Customer satisfaction 15 2.5 Perceived innovativeness 16 2.6 Openness-to-change 17 2.7 Framework and hypotheses development 18 2.7.1 FLSRs and perceived innovativeness 18 2.7.2 Openness-to-change, FLSRs, and perceived innovativeness 18 2.7.3 FLSRs, perceived innovativeness, and service experience 19 2.7.4 FLSRs, perceived innovativeness, and customer satisfaction 21 2.7.5 Service experience, customer satisfaction, and customer engagement 22 2.7.6 Conceptual framework 24 Methodology 25 3.1 Research strategy 25 3.2 Research design 27 3.3 Research method and data collection 28 3.3.1 Secondary data 28 3.3.2 Primary data 30 3.4 Measurement quality 34 3.4.1 Reliability of measures 34 3.4.2 Validity of measures 35 3.5 Data analysis 36 Empirical findings and discussion 37 4.1 Univariate analysis 37 4.2 Bivariate analysis 41 4.3 Multivariate analysis 51 Conclusions and implications 57 5.1 Conclusions 57 5.2 Theoretical implications 58 5.3 Managerial implications 59 Limitation and future research 61 References 63 Appendix 73 Appendix 1: Concepts measurement scale 73 Appendix 2: Questionnaire - English version 73 Appendix 3: Questionnaire - Swedish version 75 1. Introduction This section aims to explain the background of this study and the problems that the authors find in this field. As this research is about the Humanoid Frontline Service Robot Pepper at Husqvarna concept store, a definition of Humanoid Frontline Service Robot and a brief presentation of Pepper will be included. Subsequently, the research purpose and research question will be discussed. Finally, there will be an analysis of the delimitations that describe the boundaries set for this research and a disposition of the entire research as well. 1.1 Background As a Swedish manufacturer of outdoor power products, Husqvarna Group’s history stretches back to the late 17th century. The company has kept innovating and re-inventing its business for more than three centuries. Their passion for innovation, development and precision has led to a long line of successful products and solutions in very different areas- from weapons, sewing machines, and motorcycles to market-leading outdoor power products for customers around the globe. Today, their commitment to increasing usability together with their respect for nature is guiding the company to produce more ergonomic products with lower emissions and better energy efficiency than ever before. In addition to innovation and sustainability, the company also pays a lot of attention to customer engagement. In amounts of extant research, customer engagement is identified as a key success factor for firms (Kumar et al., 2019; Pansari & Kumar, 2017; Verhoef et al., 2010). Specifically, customer engagement is of vital importance in co-creating customer experience and value in nowadays highly dynamic business environments (Brodie et al., 2011). Moreover, customer engagement represents a strategic imperative to enhance the firm performance, such as increasing sales, creating competitive advantages, and at last increasing profitability (Voyles, 2007). Engaged customers also contribute a lot to the new product or service development because they are more willing to be involved in value co-creation (Hoyer et al., 2010). Besides, the valuable contributions from engaged customers to the firms are not only about the transactions but also include non-transactional customer behaviors (Kumar & Reinartz, 2016). 1 According to the data from Gallup, a customer who is fully engaged has a higher premium, which is 23% on average, in terms of “wallet, profitability, revenue, and relationship growth compared with the average customer”. In contrast, an “actively disengaged” customer has a lower performance, which is 13% on average, regarding those same measures (Sorenson & Adkins, 2014, p. 2). In addition, Gallup’s analysis also found that the better performance of the fully engaged customer is consistent across a variety of industries and the targeting audiences whether in a business-to-consumer model or a business-to-business model. This result is unaltered both in a good economic situation and a bad one (Ibid.). Due to the significant distributions to business performance, customer engagement has become a more frequently observed concept in the business practice discourse, together with increasing use in marketing academics (Brodie et al., 2011). Same with most traditional manufacturer companies, Husqvarna sells its products mainly through the hands of dealers. This helps Husqvarna to distribute its products worldwide, albeit, this also has some disadvantages. Most of the dealers pay more attention to the direct profit in the short run and less focus on the value creation in the long run. As a consequence, the dealers could not provide enough feedback about the interaction with customers to Husqvarna. As a customer-centric firm, Husqvarna would like to get more close to its customers and engage with its customers, then further could improve its products and service to create more value for its customers. Thanks to the growing technology, Husqvarna has adopted several strategies to interact with its customers directly. For example, it constructed its own online sales platform and a chatbot on its website, so that it could talk to customers directly. Husqvarna has one and the only self-operated bricks-and-mortar store in Stockholm, Sweden. It is named as Husqvarna Concept Store. In this store, customers can try and buy the products, get valuable advices and tips from Husqvarns’s experts, and good services. To increase customer engagement and explore the future customer experience, Husqvarna adopted a humanoid frontline service robot Pepper in its concept store. This way keeps abreast with the times, as advances of technology are leading a change to the nature of service, customer’s service experience, and the relationship between customers and the service providers radically and rapidly (Ostrom et al., 2015). One of the technologies is artificial intelligence. According to Moriuchi (2019), there is a variety of artificial intelligence being developed in the market currently. van Doorn et al. (2017) proposed that technology infusions will engage customers on a social level more systematically and effectively. At the same time, the technology infusions will shape the customer's frontline 2 experience continuously. And they predicted that in the marketplace of 2025, technology, such as the service-providing humanoid robots, will be integrated into various service experiences (Ibid.). Further on, customer engagement in automated service interactions may foster a new kind of service research sub-area (Hollebeek et al., 2021). A brief definition of the service robot in frontline services will be introduced in the next part. 1.2 Frontline Service Robot Robots have been widely used in various industries because of their precision, efficiency, and work capacity. They could be divided into two categories, one is industrial robots and the other is service robots. Industrial robots refer to the robots that work in factories for use in industrial manufacturing, while service robots are the ones used in service contexts including restaurants, banks, and hospitals (Xiao & Kumar, 2021). In the context of this research, we will focus on service robots. Artificial intelligence, such as service robots, promises to improve productivity and reduce costs, and the adoption of service robots is increasing year by year (Belanche et al., 2020). However, research on service robots from the marketing perspective is rare. This research aims to contribute to the existing studies on this topic. Research from Larivière et al. (2017) identified two roles that service robots could play in a service-oriented scenario, which are augmentation and substitution. Augmentation refers to the service robot that plays a role that assists and complements human employees, while substitution means the service robot replaces the human employee in a customer-facing service scenario (Ibid.). This study focuses on the augmentation role of service robots according to our research background. In the service perspective, The International Federation of Robotics (2016) defines service robots as ‘those that perform useful tasks for humans or equipment excluding industrial automation applications’. In the article of Belanche et al. (2020), service robots refer to autonomous technology with some physical interface that is employed in frontline operations. While a variety of definitions of service robots have been suggested, this paper will use the definition suggested by Wirtz et al. (2018, p. 909) who saw it as ‘system based autonomous and adaptable interfaces that interact, communicate and deliver service to an organization’s customers’, which focus on the frontline operations of service robots. From a service management perspective, the value of artificial intelligence is not from the virtual or unrecognized use but rather from the technology’s ability to engage with customers at a social 3 level (van Doorn et al., 2017). This is in line with the research purpose in this study that is to explore how service robots, as a way of machine-human interaction, engage with customers. To be more specific, in this research, the service robots refer to the humanoid frontline service robots (FLSRs) that are “anthropomorphized robots imbued with humanlike characteristics” (McLeay et al., 2021, p. 104). They are critically different from the non-humanoid such as the traditional self-service technologies. Because of their human-like mannerisms and emotions, humanoid robots allow companies to create positive buzz (Bloomberg, 2017). According to van Doorn et al. (2017), humanoid service robots can more meaningfully engage customers on a social level. 1.3 Presentation of the Pepper in Husqvarna Concept Store Although the frontline service robot is a relatively new technology, it is already used in many organizations. For example, recently a humanoid robot bartender was revealed in a new ship “MSC Cruise line”. The robot bartender “will mix, and serve his signature cocktails, alcoholic and non-alcoholic, and countless personalized drinks, just like a human bartender would do, whilst engaging the guests with his voice, human-like expressions for a fully immersive bar experience”(Fox News, 2021). In the United States, a frontline service robot that answers customer’s questions and helps them navigate around the store is tested in Lowe’s hardware store (McLeay et al., 2021). The service robot Pepper in this research was also a humanoid robot, and actually, he is the world’s first social humanoid robot. Developed by the SoftBank company in 2014, he can recognize faces and basic human emotions. With the perception modules, he can recognize and interact with the person talking to him. Standing 120cm tall, Pepper can engage with people through conversation or the touch screen on his chest. The touch screen helps to highlight messages and support speech by displaying content. Nowadays, Pepper is available both for home, business, and schools. More than 2,000 companies have adopted Pepper as an assistant to welcome, inform, and guide visitors (SoftBank Robotics, 2021). Up to 2016, there are close to 10,000 Peppers sold out worldwide (Tobe, 2016). HSBC’s flagship Manhattan branch deployed Pepper in 2020. Pepper can help determine a customer’s needs, relay that information to band staff, and save time for everyone involved. HSBC Head of Innovation Jeremy Balkin comments on Pepper as “Branch of the Future” because he thinks that Pepper 4 leverages the technologies to the digital experience that consumers increasingly expect from all service providers (Penn, 2019). To find out what the customer experience will be in the future and improve customer engagement, the concept store of Husqvarna in Stockholm adopted the humanoid service robot Pepper in the fall of 2019 (Picture 1.3.1). Picture 1.3.1: Humanoid Frontline Service Robot Pepper at Husqvarna concept store Currently, the Pepper in Husqvarna has been programmed with two user cases. One is about the battery usage that Pepper helps customers to find out the suitable charger and battery of the product. The other one is about Covid-19 information interaction, which introduces the matters and cautions of Covid-19 to people who are speaking to him. The store manager told us that most of the customers are happy with the service robot. Although Pepper now mainly provides a “WOW” experience for the customers because it does not have many utility features, the store manager thinks it has improved customer engagement in some ways. For example, people feel amazing about Pepper which provides a fresh experience to them. Also, by adopting Pepper, Husqvarna passed on a message to customers that Husqvarna is forward-looking, which enhances the impression of Husqvarna as an innovative brand. This 5 concept is also in line with one of Husqvarna’s products- Automower, which is a smart robotic lawnmower. However, the relationship between Pepper and customer engagement is only at an intuitive stage and there isn’t any systematic research on this. To provide a deeper understanding of the relationship between the service robot Pepper and customer engagement and finally find out ways to improve customer engagement is the research requirement from Husqvarna Group. 1.4 Problem discussion Most of the literature research on customer engagement talks about human-human interaction, and seldom of them were found to analyze the relationship between utilizing service robots and customer engagement. The reason behind this may be that service robots only entered the market in recent years, which makes it an emerging research object. With the development of technology, more and more intelligent machines are used in various industries. Storbacka et al. (2016) has expanded the notion of “actors” in the area of customer engagement. Besides the human-based interactions, there are also machine-to-machine interactions and even more customized and contextual forms of human-to-machine interactions (Ibid.). It is important to embrace these innovative actors for enhanced value co-creation. Nowadays, the development of artificial intelligence technology has enabled robots to conduct various tasks. For instance, robots could help customers at different stages of their journey, including providing information and guiding customers (Larivière et al., 2017). Artificial intelligence has the potential to bring a revolutionary impact on service organizations, which may include impacting the ways that firms engage with customers (Hollebeek et al., 2021). Customer engagement reflects customer’s interaction with given brands (Ibid.). It has played an increasingly important role in strategic planning for many managers in the past ten years. Although extensive research has been carried out on both artificial intelligence and customer engagement respectively, very few studies investigate the relationship between them (Ibid.). In response to this gap, this research aims to contribute to the empirical study on the relationship between AI-based service robots and customer engagement. Besides, further research about service robots from a social perspective is needed since existing studies are at an initial stage (Belanche et al., 2020). 6 Since the development of automation will greatly change the encounters and experiences of service, it is important to take advantage of the opportunities that provide and be aware of the challenges that follow (McLeay et al., 2021). Experimental research from McLeay et al. (2021) has investigated the customer perception of front-line service robots. They call for further field experiments based on the introduction of real front-line service robots, which will support their scenario-based research (Ibid.). Therefore, current research aims to follow McLeay et al. 's (2021) empirically established framework and continue to explore the relationship between front-line service robots and customer engagement in service settings. Specifically, the test of the hypotheses and implications, as well as other constructs of interest, are conducted based on the real front-line service robots. 1.5 Purpose and research question The purpose of this research is to understand the relationship between the implementation of service robot Pepper in the Husqvarna concept store and customer engagement. As there is already some research about the features of Frontline service robots and amounts of research about Customer Engagement, the authors will explore the antecedents that lead to customer engagement and combine them with the features of FLSRs to form a conceptual process of relationship chain from FLSRs to customer engagement. Then the authors plan to use a quantitative method to collect data to examine this conceptual framework. This research is corporate with Husqvarna Group, so all the primary information and data are collected from and for Husqvarna. To conclude, to improve the knowledge of the relationship between utilizing service robots and customer engagement, the research question is developed as below: RQ: What is the relationship between the implementation of service robots and customer engagement in the service context? - A case study of Husqvarna Group about the service robot Pepper 1.6 Delimitations The scope of the study is limited to focusing only on the service context. This is because the concept store of Husqvarna is in the service setting. The primary data collection is from the customers of Husqvarna. More specifically, the customers that visited the Husqvarna Concept store during the survey are the population in the study. Furthermore, the service robot 7 presented in the Husqvarna concept store is an artificial intelligence-enabled humanoid front-line service robot. Since the scope of current research is within the firm of Husqvarna Group, the artificial intelligence-enabled humanoid front-line service robots are included in this research, while the traditional self-service machines are excluded due to time and resource limits. Moreover, the front-line service robots could serve as either an augmentation or a substitution of human employees in the service context. In this study, the service robots that play a supplementary role to the human employee are in focus, while the service robots that play a replacement role to the human employee are beyond the scope of this study. In addition, given the limitations of data and methods used, the research is focused on describing the phenomenon and indicating correlations of the concepts. Therefore, it is impossible to establish causal relationships in this study. 1.7 Disposition In figure 1.7.1, the disposition of this study is presented. In the first stage of this master thesis study, the authors explored the subjects of customer engagement. Along with that, the authors got the initial data and background about the front line service robot Pepper in the Husqvarna concept store. In chapter 1, the background of the study and information about front-line service robots are discussed. Besides, based on the knowledge gained about customer engagement and service robots, the research question is formulated. In chapter 2, previous literature about customer engagement as well as its antecedents is reviewed. Then the conceptual framework and hypotheses of the current study are developed. In chapter 3, the research methodology used in this study is described, which is a quantitative research method with a deductive approach based on a field social survey. This approach enables the authors to develop and test hypotheses through data collection and analysis. In chapter 4, the data obtained from the social survey is analyzed and then the empirical findings are discussed. In chapter 5, the conclusions of this study are presented. In addition, the theoretical implications and managerial implications are also discussed. 8 Figure 1.7.1 Research disposition 9 2. Literature review This section aims to provide a holistic literature review about the concept of “Customer engagement” and its related antecedents. The relevant literature and concepts regarding customer engagement in a service context are discussed to establish a foundation of the topic. The literature review starts with an introduction of customer engagement and its dimensions. Then the related concepts, namely service experience, customer satisfaction, perceived innovativeness, and openness-to-change are discussed. After that, combining them with the existing literature of Frontline service robots, 9 conceptual hypotheses are formed and explained. At last, a conceptual framework of this research is introduced. 2.1 Introduction to literature review In order to identify the research purpose and research question of this study, a literature review has been conducted to gain a comprehensive knowledge of the topic in the study. The literature review was mainly focused on the field of consumer engagement, which helps the authors to build valid arguments for the studied topic. Furthermore, the literature review is important because it enables the author to get aware of what is already known within the area of the study. Based on the findings of extant studies, the authors are able to form a conceptual framework and further use a quantitative method to examine it. Before going into details about the previous research on customer engagement, the authors would like to clarify the research context of this study. According to the researches from Libert et al. (2016) and Libert et al. (2014), we could refer that almost all companies could be classified into at least one of the four main business models or a hybrid combination of them, which are Asset Builder, Service Provider, Network Orchestrator, and Technology Creator. The classification is based on a company’s value creation process or approach. When a company creates value through making, marketing, distributing and/or leasing physical goods, it can be classified into Asset Builder (Larivière et al., 2017). Industrial manufacturers and traditional retailers could serve as examples for this category. Service Provider refers to the companies that create value through skilled employees, such as healthcare organizations, financial institutions, and business consultants (Ibid.). Companies being categorized into Network Orchestrator means their value creation is through connecting peers and building 10 relationships in a platform, such as social media platforms, through which people could sell products and/or services, share reviews or establish relationships (Ibid.). Technology Creator refers to the companies that create value through developing and selling intellectual property, including software and analytics (Ibid.). Given the fact that the company of Husqvarna in this study delivers value through building and distributing physical products, it should be categorized into Asset Builder. Therefore, for the context of this research, the authors’ focus is on Asset Builder. Figure 2.1.1 demonstrates the structure of the literature review of the research. Since this research aims to find out the relationship between the implementation of FLSRs and customer engagement, the authors will first dig into the concept of customer engagement and frontline service robots. By studying the antecedents of customer engagement and the features of FLSRs, the author established a possible relationship between customer engagement and FLSRs as shown in Figure 2.1.1, which will be elaborated more in the later section that talks about our conceptual framework. Figure 2.1.1: Literature review structure 2.2 Customer engagement Defining customer engagement 11 Both “customer engagement” and “consumer engagement” have drawn a lot of attention from academic research and business practitioners (Brodie et al., 2013; Dessart et al., 2015; Verhoef et al., 2010; Bowden, 2009; Vivek et al., 2012). In most of the studies, the term “customer” and “consumer” are used interchangeably, so will follow in this study. Among previous researches on customer engagement, the core of the debate is about the conceptualization and dimensionality of customer engagement (Islam et al., 2019). These massive studies have developed a series of conceptual models of customer engagement (Vivek et al., 2012; van Doorn et al., 2010; Bowden, 2009). van Doorn et al. (2010) propose that customer engagement is a behavioral construct that results from motivational drivers, which goes beyond purchase behavior. In line with this, Verhoef et al. (2010) also define customer engagement from a behavioral manifestation perspective, that goes beyond transactions. While a study from Vivek et al. (2012) argues that the nature of consumer engagement is a component of relationship marketing, they define consumer engagement as the extent of an individual's participation in an organization’s offerings or activities. Similarly, Brodie et al. (2011) perceive customer engagement from a service relationship viewpoint, which reflects a psychological state that comes from a customer’s interactive and co-creative experiences with a focal object. Although with different definitions, customer engagement is conceptualized as a multi-dimensional construct including cognitive, affective, and behavioral dimensions by most existing research (L. D. Hollebeek et al., 2014; Brodie et al., 2011; Bowden et al., 2017). For example, Vivek et al. (2012) propose the elements that compose customer engagement are cognitive, emotional, behavioral, and social dimensions. L. Hollebeek (2011, p. 565) defines CE as a consumer's “investment of cognitive, emotional, behavioral, and social operant, and operand resources in their brand interactions”. In line with this research, we adopt the widely used three consumer engagement dimensions, which are cognitive, emotional and behavioral. The cognitive dimension of customer engagement As discussed above, hands of literature have studied the dimensionality of customer engagement by conceptual or empirical research and mostly defined three dimensions/elements: cognitive, affective, and behavioral. The cognitive aspect of customer engagement is defined as a long-lasting and active mental state that a customer has, which emerges from the customer’s interaction with a specific object, such as a brand (L. D. Hollebeek, 2013). Based on this, Dessart et al. (2015) found two subdimensions of the cognitive dimension through a semi-structured interview with social media users. One is 12 attention, which refers to a dedicated availability to interact with the object. Another one is absorption that goes a bit further than the attention, that is, customers are obsessed with the object and reluctant to leave it. In a study about customer brand engagement in social media perspective by L. D. Hollebeek et al. (2014), a similar dimension is defined as ‘immersion’, which refers to the customer’s concentration in particular brand interactions, such as sharing the object content. In total, cognitive engagement mainly comes from the experiences that customers interact with an object. In addition, Vivek et al. (2012) emphasized that this interaction and connection with the brand or product happens irrespective of whether the customer is purchasing or considering purchasing. The affective dimension of customer engagement Affective engagement focuses on the conclusive and lasting level of emotions or feelings experienced by the customer with an object (Calder et al., 2013). Specifically, this emerges from recurrent and enduring feelings, instead of an occasional emotion or feeling with the object. Based on the respondents' expressions of their feeling respect to the online brand community, Dessart et al. (2015) concluded the affective dimension to two aspects: enthusiasm and enjoyment. While enthusiasm engagement reflects the customer’s excitement and interest regarding the object. For example, one of the respondents says that she likes to comment on or like the brand status, which makes her excited to keep the conversation going. Enjoyment shows the level of customer pleasure and joy from the interaction with the object. L. Hollebeek (2011) defines this dimension as “passion” which refers to a customer's positive affection in a focal brand interaction. According to L. Hollebeek (2011), this is also the emotional investment from a customer to the object. Vivek et al. (2012) indicated that emotional context is confidence, trust, and commitment. The affective commitment reflects a psychological bond with the object and the customers. This could inspire customers to maintain a relationship with the object (company or product) autonomously due to the fact that the customers feel happy to be there and want to keep this. The behavioral dimension of customer engagement The cognitive and affective elements of customer engagement reflect the customer’s experience and feelings, while the behavioral element indicates the current and potential customer engagement (Vivek et al., 2012). Customers with a high engagement level tend to 13 transition faster on the belief-attitude-behavior continuum (Ibid.). Furthermore, they are more likely to develop more positive attitudes toward a product or brand they associate with the engagement (Vivek et al., 2012). Similarly, L. Hollebeek (2011) considers behavioral engagement as the level of time and effort the customer invested in a particular object. In line with this, she introduced “activation” as a behavioral facet of consumer engagement, which is considered as the level of energy, effort that the customer invests in brand interaction (L. Hollebeek, 2011; L. D. Hollebeek et al., 2014). From a social exchange theory perspective, activation is the customer's perceived benefits from interacting with a given brand (Ibid.). In addition to the detailed definition of customer engagement, we also find that many existing studies have identified the antecedents and consequences of customer engagement (Barger et al., 2016; Cambra-Fierro et al., 2013; Kumar et al., 2019; van Doorn et al., 2010). Among all the antecedents, we will further explore the service experience and customer satisfaction. 2.3 Service experience Defined as the overall customer experience that is from all forms of customer interactions, communications, and transactions over time in terms of service offerings, the behavioral service experience is a vital aspect of the service exchange between the service providers and customers (Kumar et al., 2019). This definition is close to those of Meyer and Schwager (2007) and Verhoef et al. (2009) who also consider experience as the customer’s individual and subjective response to any direct or indirect contact with the provider. They all indicate that the service experience emerges from the overall process between customers and providers. Hence, Helkkula (2011) points out that it is important to understand who experiences it, what the objects are, and the context of the service experience when researching in this field. In line with the three dimensions of customer engagement, Edvardsson et al (2005, p. 151) also define service experience as “a service process that creates the customer’s cognitive, emotional, and behavioral responses, resulting in a mental mark, a memory”. In recent years, with the development of technology, there are indeed some changes in the service as well. Zehrer (2009) believes that technology is playing an increasingly important role in service design. The service providers are adapting to new technologies to create fresh and memorable service experiences for their customers. Nowadays, many service providers have developed so-called “multi-interface systems” that integrate various chances for creating 14 new offerings. In addition, some researchers point out that technology continues to radically and rapidly change the nature of service. That means, the technology does not only change the service experience at a tool level but also changes the customer’s perceptions and relationships with the service provider (Ostrom et al., 2015; Huang & Rust, 2018). For example, van Doorn et al. (2017) have predicted that in 2025, technology will be deeply used in all kinds of service experiences. This is because when the new technology, such as the service robots, has been infused to impact customers at a social level, the context, objects, and subjects of service experience will all be reshaped. 2.4 Customer satisfaction Customer satisfaction has been considered a significant factor for the product or service for a long time. In the last century, Cronin and Taylor (1992) pointed out that it is one of the most important outcomes of all marketing activities and it is also a strong predictor of customer’s future behavioral intentions, such as customer’s revisit intentions and repurchase intention. In line with this, Y. H. Kim et al. (2013) in addition suggest that customer satisfaction is the main factor affecting customers’ intention to co-create value with the company in a service context. This notion is also supported by the research of Dong et al. (2008), who indicated that customer satisfaction should firstly be improved to engage customers in the service recovery process, as well as other two critical items: customer role clarity and perceived value. Especially nowadays in an increasingly competitive environment, being customer-oriented is of vital importance to an organization. In this situation, customer satisfaction could serve as an indicator of the quality in all the activities occurring in the entire business life and represent an approach for developing a truly customer-oriented culture and management (Cengiz, 2010). In Reed and Holl’s (1997) research about the methods for measuring customer satisfaction, they defined customer satisfaction as the degree to which a customer perceives that an individual, firm, or organization has effectively provided a product or service that meet or fulfill the needs of the customer in the context that the customer used it or know the product or service. They believe that satisfaction is not inherent in the individual, firm, organization, nor the product or service, but is a socially constructed response to the relationship between a customer, the product or service, and the product or service provider. As a consequence, in this process, the product or service provider could influence the relationship and further influence customer satisfaction. Goldsmith (1997, p. 355) also built a consistent definition for 15 customer satisfaction in his study of customer relationship management. He thinks that “customer satisfaction is a state of mind in which the customer’s needs, wants, and expectations throughout the product of service life have been met or exceeded, resulting in future repurchase and loyalty”. 2.5 Perceived innovativeness Research into firm innovativeness has a long history. It is considered as a firm’s willingness and acceptance to adopt new ideas that lead to the development of new products by Hurley and Hult (1998). More recently, J. Kim et al. (2015) define firm innovativeness as a source of the ability to create value for customers. Their research suggested that firm innovativeness affects instrumental brand benefits through product innovativeness, moreover, it also significantly impacts the firm’s symbolic brand benefits and partnership value (Ibid.). Similarly, research from Rubera and Kirca (2012) also suggests that firm innovativeness has positive effects on its financial position and firm value. Prior studies have noted the importance of firm innovativeness from an internal perspective, while the current research is interested in the external perspective of firm innovativeness. With this regard, perceived innovativeness from the customer perspective is identified as the main focus. Perceived innovativeness has drawn a lot of attention in marketing research (Demirbag Kaplan, 2009; Kunz et al., 2011; Ostlund, 1974). It is considered a cognitive evaluation according to McLeay et al.’s research (2021). Perceived innovativeness is not an objective assessment, instead, it is a subjective one which is customers’ perception based on their knowledge, information, and personal experience with regard to a given firm/brand (Kunz et al., 2011). Research from Johnson et al. (2001) defined perceived innovativeness as an individual's perception of an organization's innovativeness which provides a viewpoint of its overall approach to innovation, although it may vary from individuals in information access. In a similar research background, Kunz et al. (2011) narrowed their research focus to perceived firm innovativeness, which referred to a consumer-centric view of innovation. Furthermore, they conceptualized the term “perceived firm innovativeness” as the customer's perception of a firm's lasting capability to introduce creative and impactful ideas as well as solutions (Ibid.). In line with this research, perceived innovativeness used in this research is also customer-centric, which refers to the consumer's perception of a company’s ability to generate original ideas and impactful offerings. 16 2.6 Openness-to-change Openness-to-change reflects customers’ personal characteristics (McLeay et al., 2021). This characteristic is an important psychological feature that reflects the motivational basis for guiding individual behavior in various situations (Schwartz, 2012). People show different characteristics and meanwhile, they have a distinct level of openness-to-change. These differences will in turn influence customers’ adoption of innovative products and services. Normally, customers with a high level of openness-to-change are also seen as innovative customers. A study from Jin et al. (2016) suggests that innovative customers tend to show a high probability of perceiving prices as fair and reporting positive behavioral intentions since they feel grateful for meeting their need for novelty. As companies grow faster with the adoption of new technology in their products and/or services. There is evidence that openness-to-change plays a crucial role in customer’s reactions to technology. People with high openness-to-change are more likely to embrace the new technology. When it comes to the customers interacting with technology-based systems, Parasuraman (2000) introduced the term “technology readiness”. Technology readiness refers to the tendency of people to embrace, adopt and use new technologies in their life (Parasuraman, 2000). Previous research has established that openness-to-change has an impact on an individual’s acceptance of adopting innovative technologies. For instance, Wang et al. (2008) suggest in their research, customers’ adoption of innovative products is positively associated with their level of openness-to-change. Similarly, a study by Claudy et al. (2015) shows individuals with high levels of openness-to-change have more positive attitudes toward the adoption of innovation. Moreover, the high level of openness shows a negative relationship with their preference for traditional products (Ibid.). Given the fact that previous studies have not treated customer openness-to-change in much detail. The current research aims to further the current understanding of the relationship between customers’ openness-to-change and their perceived innovativeness of a given brand. 17 2.7 Framework and hypotheses development 2.7.1 FLSRs and perceived innovativeness Enabled by recently advanced artificial intelligence technologies, frontline services robots are widely deployed in service industries. A number of recent studies have recognized the importance of service robots in the context of customer services (Mary Jo Bitner, 2017; Wirtz & Zeithaml, 2018). Research from Harris et al. (2018) suggests that humanoid service robots have the potential to replace human service providers in various service settings. Furthermore, the findings of previous studies have concluded that service providers that demonstrate innovativeness will result in positive customer behavioral intentions (Jin et al., 2016). Similarly, A study from J. Kim et al. (2015) verify that firm innovativeness increases the value and is a source of competitive advantage in the service industry. Perceived innovativeness relates to customer’s acceptance of a company that adopts new ideas and launches new products (Hurley & Hult, 1998). These new ideas and/or new products represent a firm’s capability to reach “novel, creative, and impactful ideas and solutions” (Kunz et al., 2011, p. 817). Customers are more likely to consider a firm as innovative when its creative products and/or services are impactful in the market (Kunz et al., 2011). In general, customers view firms that adopt front-line service robots as a creative way to deliver service. It can be argued that customers will perceive a company as innovative with the introduction of front-line service robots. Therefore, we propose: Hypothesis 1 (H1): There is a positive correlation between FLSRs and perceived innovativeness in the asset-builder business context. 2.7.2 Openness-to-change, FLSRs, and perceived innovativeness The introduction of new technology could transform the market practices to a certain degree. Firms could adopt technology as an enabler in customizing offerings and delighting customers (M. J. Bitner et al., 2000). For example, Watt's improved steam engine brought mankind into the steam age. Faraday invented the generator and brought mankind into the electrical age. More recently, broadband Internet has been used in several areas such as mobile devices, smartphones, and virtual reality. Now we are in the computer and the internet age, the adoption of front-line service robots is enabled by the development of artificial 18 intelligence technology, which continues to bring new opportunities and challenges to the business. Nowadays, more and more firms adopt advanced technology products such as service robots to deliver their services. This enables the customer to interact with the service robots in the process of consumption. Kumar et al. (2019) suggested that there is a positive relationship between customer interaction orientation and service experience, meanwhile, the adoption of technology by consumers will strengthen this relationship. As mentioned before, openness-to-change is an individual characteristic (McLeay et al., 2021). Generally speaking, individuals with different characteristics will view the implementation of innovative products and/or services in different ways. The impact of an individual's openness-to-change on the implementation of innovative services and/or products has been verified in different studies. Individuals with a high level of openness-to-change are more likely to have a positive attitude toward adopting innovative products (Claudy et al., 2015). In line with this, a study from Wang et al. (2008) found that new product adoption is positively associated with individuals’ level of openness-to-change while negatively with their preference for traditional products. Furthermore, researchers found that perceived innovativeness has a stronger effect on innovative customers compared to less innovative consumers (Kunz et al., 2011). Therefore, we propose: Hypothesis 2 (H2): High openness-to-change strengthens the positive correlation between FLSRs and perceived innovativeness in the asset-builder business context. 2.7.3 FLSRs, perceived innovativeness, and service experience It is pointed out that the original and creative attributes of products or services could serve as significant standards to evaluate the level of perceived innovativeness (Hwang & Hyun, 2016). Based on several interviews with the stakeholders of the service robot Pepper, the authors collected some feedback that customers of Husqvarna think using the service robot in Husqarna’s concept store is a creative and novel way of providing services. This initial information is consistent with the conceptual argumentation of McLeay et al. (2021) who believe that customers will perceive introducing FLSRs as innovative. As discussed above, therefore the authors also hypothesized that the service robot in the frontline service has a positive relationship with customer’s perceived innovativeness about this company. 19 According to Watchravesringkan et al. (2010), perceived innovativeness is viewed as the degree to which customers perceive the products or services have the crucial attributes of innovation, such as ‘newness and uniqueness’. From the customer’s perspective, Kunz et al. (2011) found that perceived innovativeness affected customer loyalty through both a functional route and an affective route. Moreover, scholars have reported that an innovative service experience increases customer engagement (L. D. Hollebeek et al., 2014; Lin, 2015). For example, it is found that customers who perceive a restaurant as innovative lead to the increased perceptions of price fairness and repurchase intention (Jin et al., 2016). Besides, research about brand satisfaction in the airline industry reveals that an innovative brand experience has a positive impact on satisfaction (Lin, 2015). In recent years, service innovativeness has powered both industry and company growth. To name a few, internet-based services such as Airbnb and virtual travel agencies such as MakeMyTrip are increasingly used to enhance the customer experience (Snyder et al., 2016). Overall, perceived innovativeness plays an important role in a variety of aspects of service experience. As predicted by van Doorn et al. (2017), technology such as service-providing humanoid robots will be “melded into numerous services” and they also predict that how the service experience will be shaped is related to the extent to which technology will engage customers on a social level. Therefore, they suggest that future researchers could explore how the technology could impact the frontline service and be prepared for it. Although, traditionally, researchers think that customer experience is enhanced in the customer-employee interactions since they are the only actors in the service encounters (De et al., 2019; Larivière et al., 2017). By introducing the service robot as a new actor into the service encounters, this will be fundamentally changed. The intelligent physically embodied FLSRs can have meaningful social interactions with customers (van Doorn et al., 2017). Further conclusions show that the ability of technology to interact with and build relationships with humans will have “substantial implications for both customer's experience and how such experiences should be managed” (Ibid., p. 44). Hence, to understand the relationship between service robot in frontline service and service experience, the authors employ the perceived innovativeness as a mediator and subsequently propose the following hypotheses: Hypothesis 3a (H3a): There is a positive correlation between perceived innovativeness and service experience in the asset-builder business context. 20 Hypothesis 3b (H3b): There is an indirect positive correlation between FLSRs and service experience via perceived innovativeness in the asset-builder business context. 2.7.4 FLSRs, perceived innovativeness, and customer satisfaction As discussed above, customer satisfaction is mostly about the degree to which the company can fulfill customers’ exceptions (Anderson et al., 2004). Nowadays, companies increasingly emphasize the innovativeness of products or services as a vital way to fulfill customer’s needs in the dynamic and competitive environment and future, to increase customer satisfaction (Christensen et al., 2005). In previous studies, the result of the relation between innovativeness and customer satisfaction is mixed. Some of them reported a positive relationship between innovativeness and customer satisfaction (Langerak et al., 2004; Luo & Bhattacharya, 2006). However, Homburg and Stock (2004) got a different result from their study that the correlation between innovativeness and customer satisfaction is not significant. Moreover, in a few studies, taking the empirical research conducted by Athanassopoulos et al. (2001) as an example, a negative correlation is found between innovativeness and customer loyalty, that is the customers show a higher intention to switch the product when the perceived product innovativeness is high. Stock (2011) provides a deeper insight into the link between the innovativeness of a company offering goods/services and customer satisfaction, which might explain why researchers may get different results about this topic. He proposed that the link between customer satisfaction and perceived innovativeness is not the same for service and product. After all, service is different from goods in many perspectives, such as intangibility and inseparability. And the strategies developed for good are incapable for services (Stock, 2011). The result of his research shows that customer satisfaction increases with the increase of perceived innovativeness for the products at first. Nevertheless, when it reaches a critical level, customer satisfaction decreases with the increase of perceived innovativeness. The two variables are in an inverted U-shape relationship. The reason is that customers get overwhelmed by the complexity of the products when the perceived innovativeness for a product is too strong, which leads to high uncertainty about the company’s ability to fulfill their needs (Ibid.). In contrast, for services, customer satisfaction increases with the increase of innovativeness. Even for high innovativeness, customers expect the utility of the service exceeds the uncertainty associated (Ibid.). A recent study finds that service innovation is a 21 key driver of customer co-creation, satisfaction, advocacy, and behavioral loyalty intent in the travel agency context (L. Hollebeek & Rather, 2019). In this research, the perceived innovativeness is in the service context, because the robot Pepper at Husqvarna’s concept store is to provide an innovative service to customers. So, it is reasonable to assume that the perceived innovativeness derived from Pepper could have a positive relationship with customer satisfaction. As discussed in section 2.7.1, the authors conceptually hypothesized that FLSRs have a positive relationship with perceived innovativeness in the asset-builder business context. Here, the authors employ the perceived innovativeness as a mediator to understand the relationship between service robot in frontline service and customer satisfaction, and subsequently propose the following hypotheses: Hypothesis 4a (H4a): There is a positive correlation between perceived innovativeness and customer satisfaction in the asset-builder business context. Hypothesis 4b (H4b): There is an indirect positive correlation between FLSRs and customer satisfaction via perceived innovativeness in the asset-builder business context. 2.7.5 Service experience, customer satisfaction, and customer engagement As discussed above, service experience, as a kind of perception, happens in the entire business life where there are customers. In a study of how retailers increase customer engagement through consciousness, it is identified that engagement can occur at three levels: an outstanding customer experience, an emotional connection, and a shared identity. Delivering outstanding customer engagement is the basic level in the hierarchy of customer engagement. Based on this, emotional connections through shared purpose and values could be built (Grewal et al., 2017). This is also supported by Pansari and Kumar (2017), who proposed that service experience leads to the creation of satisfaction and emotional attachment, which in turn leads to consumer engagement. In up-to-date research about customer engagement in service, Kumar et al. (2019) concluded that a positive service experience leads to higher customer engagement in service both directly and indirectly. Therefore, in this research, the authors also believe that service experience has a positive correlation with customer engagement. 22 Hypothesis 5 (H5): There is a positive correlation between service experience and customer engagement in the asset-builder business context. Recently, Pansari and Kumar (2017) identified the components of customer engagement to be direct and indirect customer contributions, and the antecedents of customer engagement to be satisfaction and emotion. As highly satisfied customers are more likely to engage in more positive Word of Mouth, customer satisfaction is considered to be one of the most important factors affecting customer engagement behavior. It is treated as an attitudinal antecedent, along with, but not limited to, brand commitment, trust, etc (van Doorn et al., 2010). In addition, in the mobile user engagement model of Y. H. Kim et al. (2013), researchers confirmed that satisfaction could be treated as an antecedent of customer engagement in the context of the mobile environment. This result was supported by empirical research on the relations: when the customer is more satisfied with the product or service, the more likely the customer is willing to engage with the value creation. This kind of relationship between customer engagement and satisfaction was also supported by the research of Dong et al. (2008). Although some researchers also consider customer satisfaction as the consequence of customer engagement (L. D. Hollebeek, 2013; Bowden, 2009). In this article, the authors prefer the proposal from Brodie et al.'s (2011) fifth theme, which states that customer engagement plays a central role in the process of relational exchange. In this process, other relational concepts, such as satisfaction, loyalty, and commitment, could be treated as antecedents or consequences according to the environment and research objectives. In this article, we choose customer satisfaction as an antecedent of customer engagement. Hence, the authors propose that the relationship between customer satisfaction and customer engagement in the context of asset-builder business could be: Hypothesis 6 (H6): There is a positive correlation between customer satisfaction and customer engagement in the asset-builder business context. Given the relationship between frontline service robots and perceived innovativeness (Hypothesis 1) and service experience (Hypothesis 3) and customer satisfaction (Hypothesis 4). We conceptually expect that FLSRs have an indirect positive correlation with customer engagement indirectly via the variables discussed previously. Therefore, we subsequently propose the final hypothesis: 23 Hypothesis 7 (H7): There is an indirect positive correlation between FLSRs and customer engagement via perceived innovativeness, service experiences, and customer satisfaction. 2.7.6 Conceptual framework Overall, based on all the hypotheses formed in the literature review section, a conceptual framework is constructed and shown in Figure 2.7.1. In this model, the authors will test whether the perceived innovativeness about Husqvarna will be stronger for customers who have interacted with the service robot Pepper than those who have not interacted with Pepper (H1). Then, the authors conceptually propose that the perceived innovativeness will be moderated by customer’s openness-to-change (H2). Subsequently, it is hypothesized that the service robots have an indirect positive correlation with service experience (H3b) and customer satisfaction (H4b) while the perceived innovativeness serves as a mediator. Followed by this, it is proposed that service experience has a positive correlation with customer engagement (H5) and customer satisfaction has a positive correlation with customer engagement (H6). Last but not the least, the authors hypothesize that the service robots in frontline services have an indirect positive correlation with customer engagement through the mediators “perceived innovativeness”, “service experience”, and “customer satisfaction” (H7). In the framework, the authors use the dotted lines to indicate indirect correlation, such as for hypothesis 3b, hypothesis 4b, and hypothesis 7, while the solid lines are used to show the direct correlation between variables. Figure 2.7.1: A conceptual framework 24 3.Methodology The methodological approaches of this research will be discussed thoroughly in this section, which includes the research strategy, research design, research method, data collection, and data analysis in detail. These approaches are selected to better answer the research questions. In addition, since a quantitative approach is used in this research, the quality of the measurement will also be discussed in this section. 3.1 Research strategy The term “research strategy” refers to the general approach that research adopted, which also reflects the methodological assumptions (Bell et al., 2019). It is helpful to distinguish between quantitative and qualitative research as two general approaches regarding methodological issues. The decision of which one to choose is based on the research questions and the purpose of the research (Creswell, 2014). This research aims to find out the relationship between the implementation of FLSRs and customer engagement. After studying a large amount of relevant literature, the authors find a possible path to illustrate the relationship between FLSRs and customer engagement via some mediators. To test and verify whether this path is true or not for the service robot in Husqvarna’s concept store, the authors will adopt a deductive approach that is considered the most common view of the relationship between theory and research (Bell et al., 2019). The deductive research enables the researcher to develop and test hypotheses through data collection and analysis, which is aligned with the aim of this research. While inductive research is used to build theory starting from observation and builds up an understanding from it. In addition, a quantitative research strategy commonly builds on a deductive research approach, to the opposite, an inductive approach is usually associated with qualitative research. Besides, the ontology should be taken into account when carrying out business research. Ontology is a term from the Greek terms and is concerned with theorizing about the nature of reality (Delanty & Strydom, 2003). By understanding the ontology and our ontological assumptions, the reality that we are eager to understand could be captured most effectively. 25 There are two positions in ontology, namely objectivism and constructionism. Objectivism refers to social phenomena as independent and external facts. They are beyond human reach or influence and they exist no matter whether humans are aware of them or not. While constructionism is an ontology position that regards the social phenomena as ‘socially-constructed entities’(Bell et al., 2019). In other words, the entities are real because of human actions and understanding. The difference between objectivism and constructionism is an important dimension of the quantitative and qualitative contrast (Bell et al., 2019). In this research, the authors stand by the objective positions of ontology. The authors believe that the relationship between customer engagement and the service robot exists as an objective fact. Hence, a quantitative research strategy seems to be appropriate for this research based on the connection between theory and research as well as ontological considerations. Quantitative research is a research strategy that focuses on quantification in the collection and analysis of data. This research meets the dimensions of quantitative research concluded by Bell et al. (2019). See following: ● In this research, a deductive approach is used for the relationship between theory and research. The emphasis is on the testing of the conceptual model that is about the correlation between service robots and customer engagement. ● This research has studied a large amount of literature and developed a conceptual model based on them. At the same time, the information the authors collected from a pre-study of the service robots by interviewing the stakeholders who know the service robot approves that the conceptual model makes sense. As a consequence, this research has combined the practices and norms of the natural scientific model. ● Thirdly, this research takes a view of social reality as an external, objective reality. Since the research strategy is decided, the authors will follow the main steps of Quantitative research suggested by Bell et al. (2019) as described below (Figure 3.1.1): 26 Figure 3.1.1 The main steps of this research (adapted from Bell et al., 2019) 3.2 Research design The research strategy has provided a broad orientation to business research. However, it is not enough to support a piece of research. According to Bell et al. (2019), two other key decisions will have to be made, namely the choices about research design and research method. It is vital to distinguish between these two terms. The research methods are associated with different kinds of research design, which will be discussed in detail in the next part. While the research design discussed in this part guides the execution of a research method and the analysis of the subsequent data. Choice of research design attaches importance to a range of dimensions of the research process, such as expressing the causal relationship between variables, understanding the meaning of the behavior in its specific social context, having an acknowledgment of the social phenomena, and so on (Bell et al., 2019). Taking these dimensions into consideration, this research uses the cross-sectional design as a framework for the collection and analysis of data. The cross-sectional design is often called a social survey design. In a cross-sectional design, more than one case is required, since it emphasizes the variation. In this research, the authors designed two cases, or in other words, two situations. In one situation, the customers 27 have used the service robot of Husqvarna's concept store, while in the other situation, the customers have not used the service robot in Husqvarna's concept store. The cross-sectional design also proposes that the data on the variables of interest are collected more or less simultaneously (Bell et al., 2019). In this research, the authors collect the data within several days, which ensures that the data are not affected by the time changement. However, collecting data at a single point in time also causes a problem that it is difficult to establish the direction of causal influence (Bell et al., 2019). Since there is no time order to the variables, the researchers can not be certain whether the relationship between two variables denotes a causal relationship. Finally, when combining the research strategy and research design, there is an advantage for the quantitative strategy in the cross-sectional design. The quantification provides the researcher with a consistent benchmark, which helps to establish variations between cases then to examine associations between variables (Bell et al., 2019). 3.3 Research method and data collection The research method describes the used technique to gather data for this study. It provides a specific instrument of collecting data, such as a self-completion questionnaire or an interview, or participant observation, and so on (Bell et al., 2019). Besides, there are mainly two types of data in business research. One is primary data, which is collected directly by the researcher. The other one is secondary data, which uses already existing data (Bell et al., 2019). In this research, the data necessary to address the research questions have been gathered from both primary and secondary sources. The primary data is collected by using the research method of social survey and the secondary data is mainly from the previous studies. 3.3.1 Secondary data To provide a theoretical background of the research, a structured literature review is conducted as part of the collection of secondary data. This enables the researchers to gather relevant previous research within the research field of this research topic. Researchers must understand what is already known and what is unknown around the interest. According to Bell et al. (2019), the literature review is considered a useful way to build the foundation of research questions and research designs. Hence, the collection of previous studies has been conducted at the beginning of the research process. 28 There are two methods to conduct the literature review, namely narrative review and systematic review (Bell et al., 2019). Regarding how the literature review has been conducted in this research, the narrative review is chosen, as opposed to a systematic review. According to Bell et al. (2019), a narrative review is usually used to acquire initial knowledge of the studied topic of the research, which is more applicable in the context of this research since the systematic review has its limitations. As presented by Bell et al. (2019), a systematic review is time-consuming and resource-consuming and hence is less feasible for a student research project. To search for existing literature that studying the relevant topics, the following keywords have been identified: “consumer engagement (+ antecedents)”, “customer engagement (+ antecedents)”, “customer experience”, “user journey engagement”, “customer satisfaction” “customer relationship management”, “relationship marketing”, “service experience”, “customer interaction”, “perceived innovativeness”, “openness-to-change”, “Front line service robots”, “Front line service robots+customer engagement”, which are also concluded in Figure 3.3.1. When searching for relevant literature for this research, the following databases and search engines are utilized: EBSCO Business Source, Scopus, University of Gothenburg Library, Google Scholar. Keywords ● Consumer engagement ● Customer engagement ● Consumer engagement + antecedents ● Customer engagement + antecedents ● User journey engagement ● Customer satisfaction ● Customer relationship management ● Relationship marketing ● Service experience ● Customer interaction ● Perceived innovativeness ● Openness-to-change ● Front line service robots ● Front line service robots + customer engagement Figure 3.3.1 Keywords identified in this study 29 Quality appraisal criteria were applied to ensure the credibility of the collected literature. In this regard, “Peer-review” was applied as one of the literature quality appraisal criteria. As Green et al. (2006) suggested in their study, peer review is the instrument to control the quality and to ensure the trustworthiness of scientific research. Another quality appraisal criterion applied in this study is the high number of citations as Griffith et al. (2008) suggested the number of citations indicates the value and importance of the work in the field of the study. 3.3.2 Primary data Although primary data collection is time and resources consuming, the researcher has control over its quality and its alignment with the research purpose and question as well (Bell et al., 2019). In order to answer the research questions, primary data have been collected by using the method of social survey. When conducting a survey, the researcher should be concerned with the issues involved in selecting respondents. Quantitative research almost invariably involves sampling that constitutes a key step in the research process (Bell et al., 2019). In this section, the considerations of sampling for this research will be discussed in detail. Sample design Regarding sampling, there are two main types of sampling approaches, namely probability sampling and non-probability sampling. Probability sampling uses random selection so that each one in the population has an equal chance of being selected, while non-probability sampling refers to a sample that has not used a random selection method (Bell et al., 2019). For the current research, probability sampling will not be feasible since it is not possible to get the full population of the customers of Husqvarna. Therefore, this research has adopted non-probability sampling, more specifically, convenience sampling for reasons of convenience and time limit. A convenience sampling is a method that is simply available to researchers due to its accessibility (Ibid.). In the field of business and management, convenience sampling is certainly very common especially in consumer behavior research, it has become the norm (Ibid.). Since this study is about customer engagement research, convenience sampling seems to be more feasible. Moreover, the use of convenience sampling is a very effective way to collect data which allowed the authors to analyze a situation in which they did not have the time or resources to generate a random sample of all the Husqvarna customers. 30 For the sample size, Bell et al. (2019) suggested that the precision of a sample is likely to increase with an increase of the sample size, which is because the sampling error will be less. As the study is in collaboration with the Husqvarna group, the authors aim to be able to generalize their findings to the entire customer body in the company. The researcher collected data using an anonymous web-based version of the survey instrument in the Husqvarna concept store. This means that the population will all be customers of Husqvarna, which in turn will mean that the findings will be able to generalize only to customers of the company (Ibid.). Based on daily customer visits to the Husqvarna concept store, the sample size is expected to be around 100 respondents. Questionnaire design Although quantitative data analysis looks like a later phase that comes after the data have been collected, the kinds of data determine the sorts of analysis the researchers can conduct (Bell et al., 2019). Therefore, before conducting the survey to collect data, the authors started to look into the survey to consider how we are going to analyze the data later on. Bearing the analysis techniques in mind, different types of variables are identified to match the techniques when designing the questionnaire (Ibid.). To make the questionnaire easy to follow, the researchers try to make the structure of the questionnaire as simple as possible. The survey for data collection consists of 7 sections, including dichotomous variables such as gender, interval variables/ratio variables such as age, ordinal variables such as education level, and nominal variables such as the main purpose of visiting the concept store. Bearing in mind that the respondents normally do not want to write a lot, most of the questions are closed questions instead of open questions (Bell et al., 2019). Another advantage of using closed questions is that it is easy to precode (Ibid.). For all the closed questions, the researchers marked them as mandatory to answer to avoid the problem of missing data for the variables that are examined. In the meantime, the small number of open questions are optional so that they are free to choose whether to type the answer or not. The first section is a general one that collects the demographic information of the respondents and some other control variables. The second section is about the service robot Pepper. When being asked about “Have you ever interacted with Husqvarna's service robot Pepper”, if the respondents answered “yes”, the next section will be section 2 that asked questions about the feeling of interaction with Pepper. If the respondents answered “No”, the section will be skipped and jump to the third section. Therefore, only the respondents who have interacted 31 with Pepper answered section two. This enables the researcher to divide the respondents into two groups, one group has interacted with Pepper, the other group has not. From the third section to the seventh section, the questions are designed to evaluate particular concepts which are Openness-to-change, Perceived Innovativeness, Service Experience, Customer satisfaction, and Customer engagement. They were assessed with established scales to ensure they are reliable and valid, namely (1) Openness-to-change (World Values Survey 2006), (2) Perceived Innovativeness (Kunz et al., 2011), (3) Service Experience (Brakus et al., 2009), (4) Customer satisfaction (Homburg & Stock, 2005), (5) Customer engagement (Islam, 2019). Minor modifications of the items were made to adapt to this research scenario. Each section consists of 3-4 particular phrases which measure the concept. The respondents were asked to reply in terms of the level of agreement or disagreement about particular phrases. Later in the data analysis, the researchers chose the most representative phrase to conduct the data analysis. The relevant concepts mentioned above were identified following a review of the literature on customer engagement, each of which was measured through a multiple-item scale. All measures were presented on 7-point Likert rating scales ranging from strongly disagree(1) to strongly agree(7). Taking one phase from Perceived Innovativeness as an example, ‘This company (Husqvarna) is very creative. ("creative" as in that this company generates original ideas.)’(1 = Strongly disagree; 7 = Strongly agree). The middle point on the scale refers to a neutral response. The authors included questions asked in a reversed way to examine the item, in this case, the later coding for data analysis was reversed as well. Pilot study It is highly desirable to conduct a pilot study before using the questionnaire in the main study as suggested by Bell et al. (2019). This is a good way for the researchers to make sure the questions in the survey are relevant to the respondents. Before the main study, a pilot survey was carried out to check if the respondents tend to answer a particular question in identical ways. Besides, the authors would like to know whether or not there are any missing points of the questionnaire. The researchers took 2 days in the Husqvarna concept store to collect the data for the pilot study. In the process of conducting the survey, the researchers used their iPad and cellphone as tools to open the web-based survey. Then the respondents are directed to the website to answer the questionnaire. Finally, the researchers received 39 responses to the web-based questionnaire. 32 After the preliminary analysis, the questionnaire was revised accordingly to make the research instrument easy to follow and the questions easy to answer, for instance, further description of some questions was added to avoid misunderstanding of the questions. In addition, it turned out the questionnaire in English was not appropriate for some customers since they only speak Swedish. In this case, the Swedish version of the questionnaire was created for the convenience of the respondents. This translation was undertaken by a Swedish national, who was fluent in English and Swedish. This process gave the authors the confidence that the Swedish version of the questionnaire was consistent with the English version, which accurately captured the variables in the study. Later in the data analysis stage, the researchers then translated the responses back to English for analysis. Administer questionnaire to sample After the pilot study, the researchers got the information that Husqvarna has collected some customers' email addresses for providing warranty service of their products. It would be a very efficient way to collect the web-based survey response via sending email to the customers. However, it turned out the researchers are not able to email the online questionnaire to the Husqvarna customers due to the GDPR. Instead, during the data collection process, the researchers located themselves in the Husqvarna concept store and then asked the customers who came to the store to fill in the self-completion questionnaire, just as we did in the pilot survey. Self-completion questionnaires are completed by respondents themselves, which are one of the main instruments for gathering data using a social survey design (Bell et al., 2019). The customers read the questions in the questionnaires by themselves and answered them by themselves. Therefore, it is a face-to-face self-completion questionnaire approach. As Bell et al. (2019) mentioned in their book, this approach might be criticized that respondents might be selected on the subjective human bias as to whether they looked friendly and approachable. To avoid bias, the respondents in the concept store were selected randomly by the researchers. There are several advantages of conducting the self-completion questionnaire in this way. For instance, if the respondents have difficulty understanding and hence answering a question, the present researcher could help them with that. Moreover, this approach will help the researchers to overcome the risk of a questionnaire being abandoned by a respondent compared to the online self-completion questionnaires with no researcher present. For some customers who were in a hurry at the concept store, the researchers asked them to leave an email address so that the link to the online questionnaire could be sent to them. Then the customers could complete it 33 when they are available. After they completed the questionnaire, the respondents don’t need to send back the survey, instead, the researchers got the data immediately since it is a web-based survey. In total, the survey lasted for 9 days from 17th April to 25th April plus additional 2 days for the pilot study. The respondents were all the customers of Husqvarna that visited the store. and they were selected randomly by the researchers to collect the survey response. As the service robot Pepper was put in the right corner of the entrance in the store, some of the visitors might ignore it. To get more respondents to interact with the service robot Pepper, the authors guide the visitors to try Pepper. This enables the researchers to get as many responses as possible from people who communicated with Pepper. The completed answers from the respondents are summarized in the following section. 3.4 Measurement quality 3.4.1 Reliability of measures Reliability is concerned with the issues of consistency of measures (Bell et al., 2019). Whether or not the measure is stable should be considered for quantitative research. In addition, it is important to ensure that the indicators relate to each other since multiple indicators are adopted for a single concept in the survey. To assess the reliability of the measures, internal consistency (Cronbach alpha) is tested. Cronbach’s alpha is commonly used to test internal reliability. A computed alpha coefficient varies between 1 that indicates perfect internal reliability and 0 which refers to no internal reliability (Bell et al., 2019). For the sake of convenience, abbreviated forms are used. For example, CE stands for Customer Engagement, PI stands for Perceived Innovativeness, OTC stands for Openness-to-change, SE stands for Service Experience, and CS stands for Customer Satisfaction. In the concept measurement, the items for every concept are also in abbreviated forms. For example, PI1 refers to the first measurement item for Perceived Innovativeness and so on in a similar way. In the questionnaire, three items are phrased in the reversed direction. So, they were reversed back in the SPSS, as shown in OTC2.R, OTC4.R, and SE1.R (Table 3.4.1). In the process of analysis, the value of “Cronbach's Alpha if Item Deleted” was considered in each scale for every item. For the scale of Service experience, the value of “Cronbach’s Alpha if Item 34 Deleted” for SE1.R (0.74) is higher than the Cronbach’s Alpha for the entire scale (0.597). As a result, item SE1.R was removed and Table 3.4.1 shows the Cronbach's Alpha value for Service Experience after removing this item. According to Bryman and Cramer (2011), the threshold for Cronbach’s alpha is 0.7. As presented in table 3.4.1, all standardized Cronbach’s alpha values exceed 0.7 except the scale for Openness-to-change. This indicates that the items measuring the concepts “bind” together, so we will pick the most representative items respectively to continue with the data analysis. However, since Cronbach's Alpha is too low for Openness-to-change, the author adopts OTC3 that could mostly represent people’s openness-to-change as the variable. Table 3.4.1 The Reliability Statistics of concept measurement (SPSS. V26) 3.4.2 Validity of measures A further criterion of research is validity, which refers to whether or not a measure measures a given concept (Bell et al., 2019). When new measures are developed, they should always be examined for validity. Some commonly used ways for testing validity include face validity which might be established by asking other people whether or not the measure seems to 35 represent the concept, concurrent validity which compares the results of one test with the results of another valid test at a similar time, and so on. In this research, the authors employed measures that have previously been validated and published when they are gathering data on concepts in earlier research. Hence, the validity of the measure is tenable. Moreover, a face validity method is also employed by asking 4 stakeholders of the service robot in the Husqvarna concept store whether they think the measures could gather the information that represents the concepts in our questionnaire. These stakeholders all believe that the measures reflect the concept concerned. 3.5 Data analysis Data analysis is about reducing the data, and identifying patterns and relations within it to make sense of it (Bell et al., 2019). In this study, based on the data collection obtained both from different questionnaire participants and theoretical findings covered in the literature review, data analysis entails both theoretical and empirical findings. Moreover, since the research strategy is a quantitative research method approach, the study starts with a theoretical literature review, after which the hypotheses to be tested by quantitative research are formulated. In the context of this research, quantitative analysis is conducted by describing the data (variables) and the relationship between variables through a descriptive statistics analysis, of which the software of SPSS is used. During the data analysis, critical thinking is executed by the researchers in order to reason around some relevant aspects. This will help the researchers answer the research questions comprehensively, reaching the final conclusion of the study. 36 4. Empirical findings and discussion This section aims to extract the findings from all the data obtained from the data collection, especially from the primary data collected by the survey. The hypotheses derived from the framework are tested and the results of the data analysis are presented. In addition, the findings of this research are discussed in contribution to answering the research question. To present the findings comprehensively, the structure of this section is separated into three parts. Firstly, the overview of the demographic data and findings are presented in the Univariate analysis part. Secondly, the findings of relationships between several factors will be presented in the Bivariate analysis part. Thirdly, the result of path analysis of the framework is presented in the Multivariate analysis part. 4.1 Univariate analysis There are 118 respondents for the survey in total and their demographic information is summarized in table 4.1.1. Among them, 99 are males which accounts for a percentage of 83.9, and 18 are females with a percentage of 15.3. The remaining one prefers not to say his or her gender. As for the age of the respondents, the majority (33.1%) of the respondents are over 51 years old. The respondents who are between 31-40 years old and 41-50 years old make for 28% and 27.1% respectively. The respondents who are younger than 30 years old are a relatively small group in this survey, which makes up a percentage of 11.9. Most of the respondents have an education level of master’s level education, which makes up 40.7% of the total samples. The second majority of the respondents are in the upper secondary education level, which accounts for 31.4%. Followed by the respondents who have a bachelor’s level education background, accounting for 22.9%. The last group whose education level is primary or lower secondary education is very small (5.1%). Aligned with the education level, most of the respondents have a monthly income of more than 70,000 SEK, which accounts for 28.8% of the total sample. Then the second majority of the respondents have a monthly income between 40,000 SEK and 50,000 SEK, taking a 37 proportion of 22%. Two respondents do not have income or have an income of less than 10,000 SEK monthly. Table 4.1.1 The demographic information of the respondents In addition to the demographic information, other general information is summarized in table 4.1.2. Since most of the products in Husqvarna’s concept store are related to gardening, the authors also gathered the information of respondent’s garden areas. Most of the respondents have or take care of the garden with an area between 501-2000 square meters, which takes a percentage of 52.6%. Followed by this, 24.6% of the respondents do not have a garden or have a small garden less than 500 square meters. Respondents who own or take care of a garden larger than 2001 square meters are in a relatively small group, which accounts for 22.9% of the total. When it comes to the frequency of visiting the concept store, almost half of the respondents (44.9%) say they only visit the concept store once a year or less on average. Here the 0 means 38 that the respondents visit the concept store less than once a year on average. While around half of the respondents (43.2%) visit the concept store two to five times per year on average. The respondents who visit the concept store more frequently, which are more than 6 times per year, take up a small percentage of 11.9%. Most of the respondents visit the concept store to buy products, which takes a proportion of 44.1%. The second main purpose is that the respondents are requiring maintenance for their products, which makes up 30.5% of the total. Some of them are here for consulting questions, which accounts for 11.9%. The rest of the respondents just pass by or for other reasons, which accounts for 8.5% and 5.1% respectively. Among the 118 respondents, 72.9% have not interacted with the service robot Pepper, which takes a larger percentage. 32 respondents have interacted with Pepper, accounting for 27.1%. Table 4.1.2 General information of the respondents 39 Among the 32 respondents who have interacted with Pepper, the majority (75%) of them only interacted with Pepper for one time. 5 respondents have interacted with Pepper 2 times and only 3 respondents have interacted with Pepper 3 times, which accounts for 15.6% and 9.4% of the total respectively (Table 4.1.3). Table 4.1.3 Times of interacting with Pepper After interacting with Pepper, a 7-point scale measures whether respondents are happy with the interaction or not. Point 1 refers to not happy, while point 7 refers to very happy. Figure 4.1.1 shows that the mean of the result is 4.44, which indicates on average, the respondents are slightly happy with the interaction. Or, to be specific, most of the respondents feel hard to say or slightly happy since most of them give 4 or 5 points to this scale. Figure 4.1.1 Histogram showing Happy with the interaction or not (SPSS output) When asked if they are willing to interact with Pepper again, many respondents give 7 points, showing they are very willing to interact with Pepper again (Figure 4.1.2). However, a lot of them give 1 point to this scale, expressing they are very unlikely to interact with Pepper 40 again. The mean value of this scale is 4.16, which indicates that respondents are slightly willing to interact with Pepper again on average, but this result is not significant. Point 4 represents “hard to say” and for this question, respondents hold quite different views from each other (Figure 4.1.2). Figure 4.1.2 Willingness to interact with Pepper again (SPSS output) When comparing the standard deviation that measures the dispersion (Bell et al., 2019) of the two scales, it is found that the respondents hold a more coherent view for whether they are happy interacting with Pepper (Figure 4.1.1). However, their willingness to interact with Pepper is relatively different from each other, which has a greater standard deviation of 2.187 than the deviation of whether they are happy with the interaction or not (Std. Dev=1.664). 4.2 Bivariate analysis Table 4.2.1 examines the relationship between two variables from the survey: the age group and whether they interacted with Pepper or not. We can see a clear difference regarding the percentage of interacting with Pepper in different age groups. The age group of 21-30 has the highest percentage of interacting with Pepper compared to other groups, accounting for a percentage of 58.3. The age period less than 20 ranks second in terms of the percentage of interacting with Pepper, which made up 50 percent. This indicates that younger generations are more willing to interact with Pepper. This is in line with the result shown in table 4.2.2 that the variable age has a slightly negative relationship with Openness-to-change. 41 Table 4.2.1 Contingency table showing the relationship between Age and Interacting with Pepper (SPSS chi-square and Cramér’s V output) Table 4.2.2: The correlations between Age and Openness-to-change (SPSS Spearman’s rho output) To explore the relationship between the respondents’ age and monthly income, the method of Spearman’s rho is used since the variables mentioned above are interval variables and ordinal variables respectively, which is suggested by Bell et al. (2019). From table 4.2.3, we can see that there is a positive relationship between respondents’ age and monthly income, indicating that the respondents' income grows with their age in general. The correlation coefficient is 0.22 (p< 0.05), which means the relationship between them is fairly weak and it is statistically significant at the p<0.05 level. This result is consistent with common sense that average income tends to rise with age (York, 2019). 42 Table 4.2.3: The correlations between Age and Monthly income (SPSS Spearman’s rho output) When analyzing whether the respondents' visiting purpose correlates with whether they interact or not interact with Pepper, the Contingency Table 4.2.4 is generated since the two variables are both nominal variables. The result shows that in most situations, the respondents did not interact with Pepper. But for the respondents who just pass by and have a look around the store, are more likely (50%) to interact with Pepper. Taking the actual situation in the store into consideration, this result is reasonable and reliable. Because the respondents who have a business to do, such as buy products, consult questions, etc, are more in a rush and do not have spare time to try the service robot. They are more likely to go straight to ask the shop assistant for help. However, the reasons behind this phenomenon need deeper analysis. Table 4.2.4: Contingency table showing the relationship between the Main purpose of visiting and Ever interacted with Pepper or not (SPSS output) From table 4.2.5, we can see that the respondents whose income is between 0 SEK - 40000 SEK are more likely to interact with Pepper. When the respondents whose income is higher than 40000 SEK, they are less likely to interact with Pepper. As the chi-square value is 22.756 (p<0.05), implying that there is a significant correlation between the variable “Ever interacted 43 with Pepper'' and the “Monthly income”. This is in line with the conclusion that young people are more likely to interact with Pepper (table 4.2.1). Table 4.2.5: Contingency table showing the relationship between Monthly income and Ever interacted with Pepper or not (SPSS output) The contingency table 4.2.6 examines the relationship between the gender of the respondents and whether the respondents have interacted with Pepper or not. We can see that only 23.2% of the male respondents interacted with Pepper, while 44.4% of the female respondents interacted with Pepper. This might indicate that females are more likely to interact with the service robot. The approximate significance for the chi-square test is 0.061, which is very close to the frequently used significant level of 0.05. To be specific, this means that there are only 6 chances in 100 that there is no relationship in the population. The significant level is affected by the sample size and generally the larger the sample size the more likely that a computed correlation coefficient will be found to be statistically significant (Bell et al., 2019). This research, due to the small sample size, may lead to a relatively low significance level. 44 Table 4.2.6: Contingency table showing the relationship between Gender and Ever interacted with Pepper or not (SPSS output) As the research purpose is to investigate the relationship between implementing service robots and customer engagement, the correlation between interacting with Pepper and Perceived Innovativeness is firstly examined based on the conceptual framework established. The variable of “Ever interacted with Pepper or not” is dichotomous, while the variable of “Perceived Innovativeness” is ordinal. According to Bell et al. 's (2019) suggestion of the bivariate analysis method, conducting a Spearman’s rho is suitable. Hence, to examine the relationship between the variables of “Perceived Innovativeness” and “Ever interacted with Pepper or not”, Spearman’s rho is used. 45 As shown in Table 4.2.7, there is a slightly positive correlation between “Perceived Innovativeness” and “Ever interacted with Pepper or not”. The correlation coefficient is 0.038 with a significance of 0.683, which means there would be a high level of risk to infer that the correlation had not arisen by chance (Bell et al., 2019). This might be due to the limited size of the sample for this study. Though the result indicates that the respondents who interacted with Pepper show a slightly higher level of perceived innovativeness of the company, it is not completely conclusive yet. Table 4.2.7 The correlations between Ever interacted with Pepper or not and Perceived Innovativeness (SPSS Spearman’s rho output) Based on the result of Table 4.2.7, the authors decided to investigate the relationship between the variables of “Perceived Innovativeness” and the feelings after interacting with the service robot Pepper. As the variables in the discussion are all ordinal variables, the bivariate analysis of Spearman’s rho is adopted. The correlations results are shown in Table 4.2.8. The correlation between “Happy with the interaction or not” and “Willingness to interact with Pepper again” is positive with a coefficient of 0.567 (P<0.01). Similarly, a fairly positive relationship is found between “Willingness to interact with Pepper again” and “Perceived Innovativeness”, which is 0.457 (P<0.01). These results indicate that after interacting with Pepper if the respondents feel happy with the interaction, they are more willing to interact with Pepper again. Correspondingly, the more the respondents are willing to interact with Pepper again, the higher they perceive the company as innovative. To provide a logically coherent overview of the results, the results derived from Table 4.2.7 and Table 4.2.8 will be elaborate more as follows. From the result of Table 4.2.7, the customers who have interacted with Pepper show a slightly higher level of perceived innovativeness of the company. If the customers feel happy with the interaction, they are 46 more willing to interact with Pepper again. When the customers show a stronger willingness to interact with Pepper again, they are more likely to perceive the company as innovative. Therefore, customers who interact with Pepper will show higher perceived innovativeness of the company as long as they are willing to interact with Pepper again. Hence, these results partially support hypothesis 1 to a certain extent that there is a slightly positive relationship between FLSRs and perceived innovativeness in the asset-builder business context. More specifically, only when the customers are willing to interact with Pepper again after the interaction, the positive relationship between using frontline service robots and perceived innovativeness could be established. Therefore, hypothesis 1 is partially supported by the test result in the context of this research. Table 4.2.8 The correlations between Customer’s feeling of the interaction and Perceived Innovativeness (SPSS Spearman’s rho output) Since there is a partially positive relationship between FLSRs and perceived innovativeness, the authors would like to investigate whether openness-to-change could moderate the relationship. Therefore, the Hayes PROCESS Model 1 is used to test the moderate role of openness-to-change on the above relationship. As presented in Table 4.2.9, the significance of the result is 0.3249, which indicates the moderate relationship is not significant. Therefore, hypothesis 2 that high openness-to-change strengthens the positive relationship between FLSRs and perceived innovativeness in the asset-builder business context is not supported. 47 Table 4.2.9: Hayes PROCESS showing the moderating effect of Openness-to-change on the relationship between Ever interacted with Pepper or not and Perceived Innovativeness (SPSS output) Following the above results, the authors are interested in whether the customer’s feeling of interacting with Pepper differs between males and females. As shown in Figure 4.2.1, when being asked about whether they are happy with the interaction, the median for males is 5 while the median for females is 3.5. This indicates that most men feel happy about the interaction, while for most women the result is the other way around. When the authors look into the different levels of willingness to interact with Pepper again by gender, the same result above is also applicable. As we can see from Figure 4.2.2, most males feel more willing to interact with Pepper again compared to females after the interaction. These results are interesting, further investigation is needed to find out the reason behind that. 48 Figure 4.2.1 Boxplot showing the different levels of happiness when interacting with Pepper by gender (SPSS output) Figure 4.2.2 Boxplot showing the different level of willingness to interact with Pepper again by gender (SPSS output) Looking back at the framework established, the relationship between the variables of Perceived Innovativeness, Service Experience, Customer Satisfaction, and Customer Engagement needs to be examined. For the method of analysis, Spearman’s rho is used since the variables mentioned above are ordinal variables as suggested by Bell et al. (2019). The correlation result of the variables is presented in table 4.2.10. A positive relationship is found between Perceived Innovativeness and Service Experience with a coefficient of 0.528 49 (P<0.001). Similarly, the relationship between Perceived Innovativeness and Customer Satisfaction is also positive, which is 0.565 (P<0.001). Moreover, the relationship between Service Experience and Customer Engagement is found to be positive, which is 0.441 (P<0.001). Correspondingly, the correlation between Customer Satisfaction and Customer Engagement is fairly positive as well with a coefficient of 0.681 (P<0.001). Therefore, in the context of this research, the more customers perceive the company as innovative, the better the service experience they feel. Hence, hypothesis 3a that the positive correlation between perceived innovativeness and service experience is supported. Similarly, when the customer’s perceived innovativeness of the company is higher, their satisfaction level of the services provided by the company is higher. Therefore, hypothesis 4a that the positive correlation between perceived innovativeness and customer satisfaction is also supported. Meanwhile, customer engagement tends to be higher if their service experience is better. Hypothesis 5 that there is a positive correlation between service experience and customer engagement is supported. Similarly, if the customer satisfaction level is higher, their customer engagement is higher as well. Therefore, hypothesis 6 that the positive correlation between customer satisfaction and customer engagement is supported. However, for hypothesis 3b and 4b, the indirect correlation between FLSRs and service experience, customer satisfaction via perceived innovativeness are only partially supported by our study since the positive correlation between FLSRs and perceived innovativeness is only partially supported. Due to the same reason, hypothesis 7 that there is an indirect positive correlation between FLSRs and customer engagement via perceived innovativeness, service experience, and customer satisfaction is also partially supported. 50 Table 4.2.10 The correlations between PI, SE, CS, and CE (SPSS Spearman’s rho output) 4.3 Multivariate analysis To examine the pattern of relationships between the variables in the conceptual diagram, path analysis is used. What needed to be emphasized here is that the path analysis could only examine the pattern of relationships between three or more variables, but it could not establish causality (Bryman & Cramer, 2011). As presented in Table 4.2.10, the correlations between Perceived Innovativeness, Service Experience, Customer Satisfaction, and Customer Engagement are tested to be significant. Based on that, further exploration of the relationships between them is employed. The path diagram makes explicit the likely connections between variables (Figure 4.3.1). The diagram takes 4 variables into account, which are also in the conceptual framework. Perceived Innovativeness serves as an independent variable, Service Experience and Customer Satisfaction serve as two mediating variables, and Customer Engagement is the dependent variable. The diagram moves from left to right, implying the consequence of the relationships between variables. Each p denotes a relationship path and then a path coefficient that will need to be calculated. The diagram proposed that PI has a direct relationship with SE (p1) and CS (p2). Again, SE has a direct relationship with CE (p3) and CS has a direct relationship with CE (p4). As a consequence, PI has an indirect relationship with CE (p5) based on the mediating variables. In addition, there might be other factors that could have some correlations with SE, CS, and CE that are not included in this article. So here in the diagram, the authors use e to refer to the amount of unexplained variance for each variable respectively. For example, the arrow from e1 to SE refers to the amount of variance in service experience that is not accounted for by PI. Similarly, the arrow from e2 to CS denotes the amount of error arising from the variance in CS that is unexplained by PI. The arrow e3 to CE refers to the amount of variance in customer engagement that is not accounted for by PI, SE, and CS. 51 Figure 4.3.1 The path diagram for Customer Engagement To provide estimates of each of the proposed paths, path coefficients are computed. The structural equations for the path coefficients are set up in Figure 4.3.2: Figure 4.3.2 The equations for the path coefficients To complete all of the paths in Figure 4.3.1, all of the path coefficients will have to be computed. The linear regression method in SPSS.v26 is used to compute the path coefficients. For equation 1, the result (Table 4.3.1) shows that the standardized coefficient for PI is 0.553 and the R-square is 0.306 (p< 0.05). For equation 2, the result (Table 4.3.2) shows that the standardized coefficient for PI is 0.582 and the R-square is 0.338 (p< 0.05). For equation 3, the result (Table 4.3.3) shows that the standardized coefficients for PI,SE, and CS are 0.212, 0.399, 0.293 respectively, while the R-square value is 0.638 (p< 0.05). In the following, we keep all the results in two decimal places. So for example, we substitute 0.553 to 0.55. 52 Table 4.3.1 Regression of PI and SE Table 4.3.2 Regression of PI and CS 53 Table 4.3.3 Regression of PI, SE, CS, and CE Computing the results, the total indirect positive correlation between Perceived innovativeness and Customer engagement is 0.55*0.4+0.58*0.29+0.21=0.6, which is a relatively strong indirect relationship. In the end, all of the relevant path coefficients have been inserted in Figure 4.3.3. Figure 4.3.3 The path diagram for Customer Engagement with path coefficients 54 The results confirmed hypothesis 3a and hypoesthesia 4a again that perceived innovativeness has a direct positive relationship with service experience and customer satisfaction. Because hypothesis 1 that FLSRs have a positive relationship with perceived innovativeness is partially supported, hypothesis 3b and hypothesis 4b are also partially confirmed. Employing Perceived Innovativeness as a mediator, FLSRs have an indirect positive relationship with Service Experience and Customer Satisfaction. Follow on, Figure 4.3.3 also demonstrates that Service Experience and Customer Satisfaction have a direct positive relationship with Customer Engagement. In other words, Hypothesis 5 and Hypothesis 6 are fully supported by the data collected in Husqvarna, which is in line with the result from table 4.2.10. Although the correlation coefficient between Perceived innovativeness and Customer engagement is small (0.21), the indirect relationship is enhanced by the two mediators of Service experience and Customer satisfaction. The final result shows the total indirect correlation between Perceived Innovativeness and Customer Engagement is 0.6. Taking the results of the previous hypothesis altogether, Hypothesis 7 is also partially supported. FLSRs have an indirect relationship with Customer Engagement via the mediating variables of Perceived Innovativeness, Service Experience, and Customer Satisfaction. In conclusion, a table of all the results for the 7 hypotheses is summarized as below (Table 4.3.4): Hypotheses Result H1 FLSRs— Perceived Innovativeness Partially supported H2 Openness-to-change moderates “FLSRs— Perceived Innovativeness” Not supported H3a Perceived Innovativeness— Service Experience Supported H3b FLSRs --- Service Experience Partially supported H4a Perceived Innovativeness— Customer Satisfaction Supported H4b FLSRs --- Customer Satisfaction Partially supported H5 Service Experience— Customer Engagement Supported 55 H6 Customer Satisfaction— Customer Engagement Supported H7 FLSRs --- Customer Engagement Partially supported Table 4.3.4 Results of the Hypotheses 56 5.Conclusions and implications In this section, the main findings are concluded. Follow on, the theoretical implications that include the new theory findings, the consistency, and the difference with the existing theories are discussed. Also, the managerial implications that summarize what the results mean in terms of actions are discussed. 5.1 Conclusions Customer engagement is a key factor for a company’s performance (Kumar et al., 2019; Pansari & Kumar, 2017; Verhoef et al., 2010). Deploying advanced technologies to enhance customer engagement is one of the methods that companies utilize. Among those technologies, the service robots infused with artificial intelligence are adopted by many companies, as they can provide a fresh frontline service (McLeay et al., 2021). The objective of this study was to understand the relationship between Frontline Service Robots and Customer Engagement. An in-depth theory discussion of Customer Engagement including its antecedents and consequences and the definition of Frontline Service Robots were used to form a conceptual process of the relationship chain from implementing FLSRs to Customer engagement. Employing the frontline service robot Pepper in the Husqvarna concept store as the research subject, a survey was conducted to collect information about how customers interact with the service robots. Followed on, the correlation analysis, Hayes Model, and path analysis were used to examine the conceptual framework. The empirical findings demonstrate that the introduction of FLSRs does have a positive relationship with customer engagement. However, this result is only partially supported, which means that this only happens to a certain extent. In this research, it is found that only when customers are willing to interact with the service robot again after the interaction with the FLSR, a positive relationship exists. However, the personal customer characteristic “Openness-to-change” that serves as a moderator does not strengthen or weaken the positive relationship between FLSRs and perceived innovativeness. Further results show that perceived innovativeness has a positive relationship with both customer satisfaction and service experience. And these two variables have a positive relationship with customer engagement. These results are consistent with previous research (McLeay et al., 2021). 57 Our research found the importance of customer’s feelings regarding the interaction with the service robot Pepper. This indicates that the introduction of FLSRs can not promise to increase customer engagement, but the willingness to interact again with FLSRs has a positive relationship with customer engagement. It is thus of great significance for both companies and academia to consider the different outcomes of using FLSRs when exploring the relationship between FLSRs and customer engagement. Hence, our results contribute to the theoretical as well as managerial implications that will help to use FLSRs properly to increase customer engagement. 5.2 Theoretical implications This research addresses gaps in the existing literature by answering calls for field experiments based on the introduction of real frontline service robots, which supports previous scenario-based research regarding frontline service robots and brands (McLeay et al., 2021). Though previous empirical research has explored the role that frontline service robots play in affecting customer service experience, no field experiment has been conducted (Ibid.). The authors took advantage of the newly introduced frontline service robot Pepper at Husqvarna to conduct a field experiment via survey. This enables the researchers to examine and verify the relationships established from Mcleay et al.’s conceptual framework (Ibid.). Furthermore, by reviewing extensive literature about frontline service robots and customer engagement, this research extends the conceptual framework from Mcleay et al. by adding more relevant concepts into the framework (Ibid.). In this research, the relationship between using the service robot Pepper in Husqvarna’s concept store and the perceived innovativeness of this company is not significant. This finding is aligned with the result found by McLeay et al. (2021) in an experimental study investigating the effects of the FLSR in several service contexts. McLeay et al. (2021) found that the augmentation role does not have any indirect effects on service experience. Only the substitution role of FLSRs has a positive indirect effect on service experience via perceived innovativeness (Ibid.). This result is reasonable since the service robot Pepper in Husqvarna is not intelligent enough. It is still in the very initial stage of its development and has very few features. It can not provide service to the customers like other shop assistants in Husqvarna’s concept store. Hence, it could only play a complementary role, rather than a replacement role. This finding suggests that the frontline service robots have the potential to improve a company’s perceived innovativeness if more favorable features are added to the service 58 robots. In addition, the results of this research do not support the hypothesis that customer’ openness-to-change could serve as a moderator to strengthen or weaken the relationship between implementing FLSRs and perceived innovativeness, which is in line with McLeay et al. 's finding as well (Ibid.). Thereby, the findings of this study could serve as a supplement to previous research on the implementation of frontline service robots and customer engagement. In addition, through our conceptual framework, we advance insights into the augmenting role of FLSRs as a service supplement as well as its relationships between customer engagement and relevant antecedents. By examining the different satisfaction levels customers perceived after interacting with the service robot Pepper, this study adds to the FLSRs literature from a customer perspective. In this sense, our findings suggest that customers perceive the firm as innovative when the firm implements frontline service robots and customers are willing to interact with them again after the interaction. In this case, our findings that customer engagement has a positive relationship with service experience and customer satisfaction are in line with previous research (Cambra-Fierro et al., 2013; McLeay et al., 2021). 5.3 Managerial implications Our findings draw importance for service providers to pay attention to how customers evaluate the interaction with frontline service robots, especially when the frontline service robots could only play the augmenting roles in the service providing process. As the service employees, whether they are humans or robots, represent the company and impact the relationship between customers and the organizations (Mende et al., 2019), it is vital to make sure the service robots play a positive role in the relationship. Here, according to the result in this research that only when customers who are willing to interact with the service robots again after the interaction shows higher perceived innovativeness for the firm, it is advised that firms that deployed FLSRs should track and measure the feedback of how customers feel about the interaction with FLSRs, and collect suggestions for improving the service robots. In Husqvarna's case, the authors collected feedback from its customers that the main reason why they are not willing to interact with the robot again is that the service robot Pepper is not intelligent as they expected. Take a step further, customers think the features that Pepper provides are too limited. Consequently, the authors suggest that firms should make the best use of FLSRs if they have already adopted one, putting in more effort to develop some features that users want for the FLSRs. 59 Nonetheless, it is critical to keep a balance between the substituting role and the augmenting role of a frontline service robot. It is also not a good idea to overdo it, such as to develop the FLSRs as intelligent enough to replace a human employee. As found by McLeay et al. (2021), although FLSRs replacing human employees is perceived as more innovative, it also causes ethical problems, such as issues regarding data privacy, biases, or the purpose of introducing robots. For example, Huang and Rust (2018) mentioned that AI has the potential to replace humans and lead to job displacement or job losses. The negative effects also include that humanoid service robots can trigger discomfort in the customer segment who feel anxious about the technology or who has a low technology readiness, which could destroy customer satisfaction (Mende et al., 2019; Meuter et al., 2003). Hence, firms who are planning to adopt an FLSR should consider it carefully, as the adoption of the FLSR remains controversial (McLeay et al., 2021). It is delightful that this research proves the positive correlations between perceived innovativeness, customer satisfaction, service experience, and customer engagement still exists in the context of introducing the service robots via a field experiment. Hence, to improve customer engagement, firms can utilize FLSRs to optimize the above-mentioned elements. For example, according to Kunz et al. (2011), a good way to create the perception of firm innovativeness is to generate novel solutions that impact the marketplace. So, a firm that has adopted a service robot should try to explore what kind of creative and novel service experience the service robot could provide, at the same time, let more customers know about it. 60 6. Limitation and future research This section discusses the limitations of this research as well as some extra findings from the data. Based on these, feasible further research is suggested. Though this research contributes to the customer engagement literature, it also comes with some limitations that call for future research. Firstly, our research is solely focused on a specific service context (Husqvarna Group). Therefore, to generalize the results of this study, further research of different contexts and service settings is needed. Secondly, the sample size of this study is relatively small since there were not many visitors to the Husqvarna concept store when we conducted the survey. This is because there is an ongoing worldwide pandemic that people normally show up in a physical store only when it is really necessary. Another reason is that Husqvarna is a company that delivers gardening equipment, such as lawnmowers and automowers, etc. In this case, the peak period of customer visits to the store is around May since that is when the grass starts to grow. However, our data collection was conducted in April. Influenced by the above-mentioned reasons, the respondent group that interacts with the service robot Pepper is also small. Hence, to draw more in-depth findings on this topic, further research with larger sample size is suggested. Thirdly, given the fact that the results in this study are based on the two-scenario service robot Pepper, we acknowledge that with more complex service scenarios, the result will be affected. More specifically, the service robot Pepper in the Husqvarna concept store has too limited features for customers to use. This may result in customers perceiving it as not smart enough to handle their issues and this is one of the main reasons why customers are not willing to interact with the service robot Pepper again. Hence, if Pepper is smarter and has more features, there might be more customers who feel positive about the service and are willing to use it again. In this regard, the authors encourage further research to examine more complicated and smarter service robots. They might get different results. Fourthly, while this study investigated the relationship between the implementation of frontline service robots, perceived innovativeness, service experience, customer satisfaction, 61 and customer engagement, other relative constructs or concepts exist that could be explored in future research. For example, two additional interesting findings are out of the research range, which could be included in future studies. It is found that the preference of interacting with the service robots or not is different for respondents who hold different purposes to visit the store. Another finding is that females are more likely to interact with the service robot Pepper while males feel more satisfied with the interaction hence are more willing to interact with it again than females. Therefore, the gender and visiting purpose of customers should also be considered when researching how to optimize the use of FLSRs both in academic and practical situations. Lastly, due to the limitations of data and methods used, the research is focused on describing the phenomenon and indicating correlations of the concepts. Therefore, no causal relationships are established in this study. Additional research could be conducted to explore the causal relationship in the established framework. As suggested by Bell et al. (2019), the experimental research design is often used for causal findings, the further research could adopt a strict experimental research design to explore the causal relationship. In our study, we used a cross-sectional design instead of an experimental research design. Although the authors choose some respondents to guide them to interact with the robot, the respondents can decide whether to interact with Pepper or not. Therefore, whether the FLSRs are absent or present to the customers is not controlled by the authors but by the respondents. This may result in uncontrolled factors that may affect the two groups of samples. For example, respondents' personal characteristics “Openness-to-change” in two groups might differ as the respondents in the group that they have interacted with the service robot Pepper might be more open to change than the respondents in the group that they have not interacted with the service robot Pepper. 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Service experience and service design: Concepts and application in tourism SMEs. Managing Service Quality: An International Journal, 19(3), 332–349. https://doi.org/10.1108/09604520910955339 72 Appendix Appendix 1: Concepts measurement scale Appendix 2: Questionnaire - English version Section 1. General information What is your gender? How old are you? What is your education level? What is your monthly income (before tax)? How large is your garden (Please enter the approximate number in ㎡, if you don't have a garden, please enter "0")? How many times have you visited the Husqvarna concept store in one year? Your main purpose of visiting the Husqvarna concept store today? 73 Have you ever interacted with Husqvarna's service robot Pepper? (Pepper is the service robot presented in the front door of Husqvarna concept store) Section 2. Information about interacting with Pepper How many times have you interacted with Pepper? Are you happy with the interaction? Will you interact with Pepper again? Do you have any suggestions for improvement of Pepper? Section 3. Perceived innovativeness This company (Husqvarna) is very creative. ("creative" as in that this company generates original ideas.) This company has changed the market with its offers. This company is forward-looking. (Here we mean this company thinks about the future, has modern ideas.) Section 4. Openness-to-change It is important to think up new ideas and be creative. It is important to me to avoid anything that might be dangerous. Adventure and taking risks are important to me. (Here we mean you like to engage in a hazardous and exciting activity, especially the exploration of unknown technology or products) It is important to me to avoid doing anything people would say is wrong. Section 5. Service experience I do not have strong emotions for this company. This company's products make me think. (For example, you may think about how to lead a more sustainable lifestyle, etc.) This company stimulates my curiosity. On an overall basis, my experience with this company has been positive. Section 6. Customer satisfaction I am very pleased with the products and services provided by this company in general. I enjoy interacting with this company. (For example, purchasing its products, communicating with its employees, providing feedbacks to it, etc) On an overall basis, I am satisfied with this company. Section 7. Customer engagement Using Husqvarna products makes me think about the company (For example, you may think about Husqvarna's reputation or brand image). 74 Using Husqvarna's products stimulates my interest to learn more about the brand. I am happy with Husqvarna products in general. I prefer Husqvarna products over other similar brands. What feedback do you have about this survey? Appendix 3: Questionnaire - Swedish version Sektion 1. Allmän information Vad är ditt kön? Hur gammal är du? Vad har du för utbildningsnivå? Vad är din månatliga inkomst (före skatt)? Hur stor är din trädgård (ange ungefärlig storlek i ㎡. Om du inte har en trädgård, ange "0")? Hur många gånger har du besökt Husqvarnas konceptbutik det senaste året? Vad är ditt huvudsyfte med att besöka Husqvarna konceptbutik idag? Har du någonsin interagerat med Husqvarnas servicrobot Pepper? (Pepper är servicroboten som presenteras i ytterdörren till Husqvarnas konceptbutik) Sektion 2. Information om interaktion med Pepper Hur många gånger har du interagerat med Pepper? Är du nöjd med interaktionen? Kommer du att interagera med Pepper igen? Har du några förslag till förbättringar av Pepper? Sektion 3. Upplevd innovativitet Detta företag är mycket kreativt. (Med “kreativt" menar vi att det här företaget genererar originella idéer) Detta företag har förändrat marknaden med sina erbjudanden. Detta företag är framåtblickande. (Här menar vi att detta företag tänker på framtiden och har moderna idéer.) Sektion 4. Öppenhet för förändring Det är viktigt att tänka på nya idéer och vara kreativ. Det är viktigt för mig att undvika risker. Äventyr och att ta risker är viktigt för mig. (Här menar vi att du gillar att ägna dig åt riskfyllda och spännande aktiviteter, särskilt utforskning av ny teknik eller nya produkter) Det är viktigt för mig att undvika att göra sånt andra kan tycka är fel. 75 Sektion 5. Serviceupplevelse Jag har inga starka känslor för detta företag. Det här företagets produkter får mig att tänka till. (Du kan till exempel tänka på hur du skulle kunna ha en mer hållbar livsstil) Detta företag stimulerar min nyfikenhet. Sammantaget har min erfarenhet av detta företag varit positivt. Sektion 6. Kundnöjdhet Jag är väldigt nöjd med de produkter och tjänster som tillhandahålls av detta företag i allmänhet. Jag tycker om att interagera med det här företaget. (Till exempel köpa deras produkter, kommunicera med deras anställda, ge feedback osv.) Sammantaget är jag nöjd med detta företag. Sektion 7. Kundengagemang Att använda Husqvarnas produkter får mig att tänka på företaget (till exempel kommer du kanske att tänka på företagets rykte eller kärnvärden). Att använda Husqvarna stimulerar mitt intresse att lära mig mer om varumärket. Jag är nöjd med Husqvarnas produkter i allmänhet. Jag föredrar Husqvarnas produkter över liknande märken. Vilken feedback har du om den här undersökningen? 76