Theories of Marketing – Summary Week 4 Author: Huisingh
MA Summary Article 4.1 Buell & Norton (2011)
The Labor Illusion: How Operational Transparency Increases Perceived Value
Abstract
A ubiquitous feature of even the fastest self-service technology transactions is the wait.
Conventional wisdom and operations theory suggest that the longer people wait, the less satisfied
they become; we demonstrate that because of what we term the labor illusion, when websites
engage in operational transparency by signalling that they are exerting effort, people can actually
prefer websites with longer waits to those that return instantaneous (onmiddelijke) results—even
when those results are identical. In five experiments that simulate service experiences in the
domains of online travel and online dating, we demonstrate the impact of the labor illusion on
service value perceptions, demonstrate that perceptions of service provider effort (inspanning)
induce feelings of reciprocity (interactie)that together mediate the link between operational
transparency and increased valuation, and explore boundary conditions and alternative explanations.
Key words: marketing; channels of distribution; queues (wachtrijen); industries; business services;
inventory–production; operating characteristics; service operations; service design.
Introduction
We suggest that showing consumers what is taking so long, can not only decrease frustration but
actually increase ratings of the service, such that consumers actually value services more highly when
they wait.
We suggest that engaging in operational transparency, by making the work that a website is doing
more salient (opvallend/zichtbaar), leads consumers to value that service more highly. Indeed, we
suggest that the mere (louter) appearance of effort—what we term the labor illusion—is sufficient
to increase perceptions of value.
In five experiments, we demonstrate the role of the labor illusion in enhancing service value
perceptions among self-service technologies. Customers transacting in self-service environments
(instead of face-to-face) do not observe the effort of the service provider. We suggest that customers
may perceive that service as less valuable because of the absence of labor (arbeid). Adding that labor
back in via operational transparency, therefore, has the potential to increase perceptions of value.
Waiting, Effort, and Perceived Value
Literatures have sought to identify strategies for both improving the experiences of waiting
customers (1) and reducing service duration itself (2).
1. Research on the psychology of queuing focuses on managing the perceptions of waiting
customers by occupying periods of idle time, increasing the feeling of progress, managing
anxiety and uncertainty, setting accurate expectations, bolstering perceptions of fairness,
managing sequence and duration effects, providing customers with the feeling of control,
shaping attributions, and shaping memories of the experience.
2. One increasingly common strategy for improving the speed and productivity of service is the
introduction of self-service technologies.
1
, Although self-service technologies necessarily eliminate the opportunity for face-to-face
interactions with a service provider in which consumers can witness an employee sweating to get
the job done, the interfaces through which consumers engage with self-service can be modified by
inserting operational transparency into the process, to demonstrate the “sweat” that the technology
is exerting on the consumer’s behalf.
Providing a running tally of the tasks being undertaken—creating the illusion of labor being
performed—can serve to increase consumers’ perceptions of effort, and as a result, their
perceptions of value.
Previous research has demonstrated that perceived effort leads to feelings of reciprocity and
increased perceptions of value; we suggest that operational transparency provides cues for
consumers to better understand how the quantity of work being conducted translates into how hard
the company is working for them.
Presentation of Experiments
In five experiments and across two domains (online travel and online dating websites), we
investigate the effect of the labor illusion on perceptions of service value.
The labor illusion a representation of the physical and mental work being conducted—signalled
via operational transparency—as the customer waits for service delivery.
Experiment 1: Demonstration of the labor illusion
We first demonstrate that the labor illusion increases customer perceptions of value in self-service
contexts.
These results offer initial support for our contention that operational transparency has a positive
impact on value perceptions, demonstrating the clear value of increasing perceptions of the labor
conducted by self-service technologies by creating the labor illusion.
2
MA Summary Article 4.1 Buell & Norton (2011)
The Labor Illusion: How Operational Transparency Increases Perceived Value
Abstract
A ubiquitous feature of even the fastest self-service technology transactions is the wait.
Conventional wisdom and operations theory suggest that the longer people wait, the less satisfied
they become; we demonstrate that because of what we term the labor illusion, when websites
engage in operational transparency by signalling that they are exerting effort, people can actually
prefer websites with longer waits to those that return instantaneous (onmiddelijke) results—even
when those results are identical. In five experiments that simulate service experiences in the
domains of online travel and online dating, we demonstrate the impact of the labor illusion on
service value perceptions, demonstrate that perceptions of service provider effort (inspanning)
induce feelings of reciprocity (interactie)that together mediate the link between operational
transparency and increased valuation, and explore boundary conditions and alternative explanations.
Key words: marketing; channels of distribution; queues (wachtrijen); industries; business services;
inventory–production; operating characteristics; service operations; service design.
Introduction
We suggest that showing consumers what is taking so long, can not only decrease frustration but
actually increase ratings of the service, such that consumers actually value services more highly when
they wait.
We suggest that engaging in operational transparency, by making the work that a website is doing
more salient (opvallend/zichtbaar), leads consumers to value that service more highly. Indeed, we
suggest that the mere (louter) appearance of effort—what we term the labor illusion—is sufficient
to increase perceptions of value.
In five experiments, we demonstrate the role of the labor illusion in enhancing service value
perceptions among self-service technologies. Customers transacting in self-service environments
(instead of face-to-face) do not observe the effort of the service provider. We suggest that customers
may perceive that service as less valuable because of the absence of labor (arbeid). Adding that labor
back in via operational transparency, therefore, has the potential to increase perceptions of value.
Waiting, Effort, and Perceived Value
Literatures have sought to identify strategies for both improving the experiences of waiting
customers (1) and reducing service duration itself (2).
1. Research on the psychology of queuing focuses on managing the perceptions of waiting
customers by occupying periods of idle time, increasing the feeling of progress, managing
anxiety and uncertainty, setting accurate expectations, bolstering perceptions of fairness,
managing sequence and duration effects, providing customers with the feeling of control,
shaping attributions, and shaping memories of the experience.
2. One increasingly common strategy for improving the speed and productivity of service is the
introduction of self-service technologies.
1
, Although self-service technologies necessarily eliminate the opportunity for face-to-face
interactions with a service provider in which consumers can witness an employee sweating to get
the job done, the interfaces through which consumers engage with self-service can be modified by
inserting operational transparency into the process, to demonstrate the “sweat” that the technology
is exerting on the consumer’s behalf.
Providing a running tally of the tasks being undertaken—creating the illusion of labor being
performed—can serve to increase consumers’ perceptions of effort, and as a result, their
perceptions of value.
Previous research has demonstrated that perceived effort leads to feelings of reciprocity and
increased perceptions of value; we suggest that operational transparency provides cues for
consumers to better understand how the quantity of work being conducted translates into how hard
the company is working for them.
Presentation of Experiments
In five experiments and across two domains (online travel and online dating websites), we
investigate the effect of the labor illusion on perceptions of service value.
The labor illusion a representation of the physical and mental work being conducted—signalled
via operational transparency—as the customer waits for service delivery.
Experiment 1: Demonstration of the labor illusion
We first demonstrate that the labor illusion increases customer perceptions of value in self-service
contexts.
These results offer initial support for our contention that operational transparency has a positive
impact on value perceptions, demonstrating the clear value of increasing perceptions of the labor
conducted by self-service technologies by creating the labor illusion.
2
