The impact of IT applications on customer satisfaction: some new perspectives in the supplier-retailer relationships

Abstract

The widely-reported advantages of information technologies (IT) in business processes have driven companies to devote important financial resources to IT solutions. However, academics suggest that investment in IT should be carefully assessed and restricted to what is strictly necessary. In this line, this paper aims at analysing the relationship between the customer perception about the IT intensity of use by its main provider and customer satisfaction with the provider's IT solutions as well as the existence of differences across activity sectors. For a sample of retailers of four different industries – i.e., grocery, apparel, electronics and furniture – results support the existence of significant differences depending on the activity sector of the retailer. While some IT solutions are widely used by retailers, other developments are only used in some sub-sectors. Differences in IT usage are closely related to the different valuation of the perceived costs and benefits of technology.