The Impact of Product Quality and Service Quality in Product-Service System on Economic Value : Focusing on Mediating Effect of Experience Value for Electronic Shelf Labels

Abstract

In recent years, Electronic Shelf Labels (ESL) is attracting attention as an innovative price information system for offline retail stores. Paper price labels, which have been used in retail stores for a long time, are an inefficient system in delivering price and product promotion information to shoppers. The paper price label system, which is produced solely by the hand of the employees, does not provide a satisfactory experience to shoppers by frequently creating situations where inaccurate prices are displayed or prices are not announced in a timely manner. Moreover, as a large part of the work time is spent on replacing the paper price label, the productivity of the employees is lowered and the job satisfaction level is also lowered.

This study aims to present indicators and models for measuring the performance of ESL system, which has recently begun to be introduced as an infrastructure for operation innovation of price information in offline retail stores. To this end, Product Quality and Service Quality factors based on ESL attributes were derived through previous studies and used as independent variables, and items related to Economic Value, one of the PSS value factors, were used as dependent variables as performance indicators. And, as mediators, the elements of Experience Value were defined from the perspective of ESL users. As a research method, a structural equation model was used to analyze the data collected from the employees of medium-sized stores of the large-scale brands that introduced ESL in Korea.

As a result of the study, it was confirmed that Experience Value was completely mediated in the relationship between Product Quality and Economic Value. On the other hand, Experience Value was partially mediated in the relationship between Service Quality and Economic Value. According to the results of these, it was found that the product quality attributes of ESL have low influences on directly solving the problems of the existing price information operation, but it can affect performance through the user’s individual use experience. In contrast, Service Quality has the direct effects on performance by including the operating factors of ESL.

This study developed the measurement indicators through previous researches on ‘Product Quality’, ‘Service Quality’, ‘PSS’, and ‘Experience Value’ in grasping the introduction performance of ESL. Survey data was collected from retailers who introduced ESL in Korea.

This study suggests the significant academic implications in that the results of research reflecting the PSS attributes of ESL were derived through the analysis of the collected data.

In addition, the results present as the practical implications that ESL suppliers and retailers must make strategies and efforts to improve the experience value and service quality of products in order to enhance the performance of ESL introduction.

In particular, in the context of intensifying competition with online/mobile shopping malls today, this study has implications in that it deals with the introduction results of ESL, an automated system for delivering price information, from the viewpoint of enhancing the productivity of offline retail stores.

This study has significance as an early empirical study on ESL. It is expected that there will be follow-up studies targeting stores in various sizes, types, and regions in the future.