Overcoming Barriers to Entry
As new technologies become available, there are often barriers that prevent customers from using them, and managers need to be aware of this. Such barriers can significantly hinder the growth of the organization. One barrier is the “fear of the unknown” that is often associated with new technologies, a good example being the first time one purchases goods
and services over the Internet. Here, because there are no tangibles associated with the firm, customers are concerned about misuse of their credit cards and whether or not they will actually get delivery of the goods or services they have purchased. Another barrier is lack of knowledge of the consumer in using the service. This is especially true for self-service operations as well as for those services that use new technologies. Self-service gas stations provide a good example here. as there are many individuals who do not know how to operate a gas pump. ATMs provide a good example of a service involving a new technology where customers
must not only overcome their fear of the unknown, but also must learn how to properly use the technology.