CHAPTER 2: LITERATURE REVIEW
2.0 Introduction
This chapter presents a comprehensive review of the theoretical, conceptual, and
empirical literature surrounding the adoption of in-store digital technologies in the retail
sector and its subsequent impact on customer perceived value. By analyzing global,
regional, and local scholarly works, this chapter builds a robust academic foundation for
the study. It explores key constructs such as technological performance, ease of use,
payment system reliability, and their direct links to customer satisfaction, trust, and
loyalty. Furthermore, it incorporates relevant theoretical lenses—specifically the
Technology Acceptance Model (TAM) and the Diffusion of Innovation (DOI) theory—to
explain the behavioral dynamics of retail consumers. The chapter concludes by
synthesizing established findings and identifying critical gaps in existing literature,
particularly within the challenging socio-economic environment of Zimbabwe.
2.2 Theoretical Framework
2.2.1 Technology Acceptance Model (TAM)
Originally posited by Davis (1989), the Technology Acceptance Model (TAM) remains
the preeminent framework for understanding user adoption of new technological systems.
The model rests on the premise that an individual's behavioral intention to use a new
system is primarily determined by two core cognitive variables: Perceived Usefulness
(PU) and Perceived Ease of Use (PEOU).
Perceived Usefulness is defined as the degree to which a user believes that executing a
specific system will enhance their job or task performance. Within the context of this
study, this translates to the retail customer's belief that using digital in-store technologies
(e.g., self-service kiosks or mobile payment apps) will make their shopping transaction
faster, more convenient, or more efficient. If a customer perceives that a digital check-out
counter saves them time, the 'usefulness' score is high, driving adoption.
Perceived Ease of Use is defined as the degree to which a person believes that the use of
a particular system will be free of effort. For retail consumers, this relates to the
intuitiveness of the interface, the clarity of instructions, and the minimization of cognitive
load required to complete a transaction. Higher PEOU leads to lower anxiety and higher
satisfaction. TAM is particularly salient here as it allows the researcher to quantify how
'user-friendly' designs directly impact the 'value' perceived by the customer.
2.2.2 Diffusion of Innovation Theory (DOI)
Developed by Everett Rogers (1962), the Diffusion of Innovation theory provides a
socio-technical perspective on how, why, and at what rate new ideas and technologies
spread. Rogers classifies the decision to adopt an innovation based on five perceived
attributes: relative advantage, compatibility, complexity, trialability, and observability.
In the context of Zimbabwean retail, 'Relative Advantage' is a vital driver; consumers are
rational actors who will only switch from cash to digital payments if they perceive the
new method as superior—perhaps by bypassing long queues during cash shortages.
'Compatibility' is equally critical; an ideal technology must align with the consumer's
existing sociocultural values and lifestyle, such as phone-based commerce habits
developed due to necessity. 'Complexity' acts as a significant barrier; if the technology is
perceived as difficult to navigate, adoption rates plummet. This theory helps explain the
uneven adoption patterns observed in emerging markets, where infrastructural challenges
often dictate the 'observability' and 'trialability' of retail innovations.
2.4 Empirical Literature Review
2.4.1 Technological Performance as a Driver of Value
Technological performance represents the functional bedrock of the modern retail
experience. Research by Parasuraman et al. (2005) on E-S-QUAL scales suggests that
system availability, reliability, and speed are the primary predictors of customer
satisfaction. A retail environment characterized by 'intelligent' systems—such as real-
time inventory tracking and rapid scanners—minimizes the 'sacrifice' aspect of
Zeithaml’s (1988) Perceived Value theory. When systems function optimally, they reduce
the time-cost of shopping, thereby increasing perceived net value. Conversely, empirical
evidence from emerging markets highlights that technical bottlenecks (e.g., payment
gateway timeouts) create 'technostress,' which directly diminishes the consumer's
perceived value of the retail experience.
2.4.2 The Role of Digital Payment Systems in Emerging Markets
Digital payment systems have transitioned from being a convenience feature to a
necessity in many developing economies. In Zimbabwe, the prevalence of mobile money
(e.g., EcoCash) as a primary transaction medium highlights the concept of 'technological
substitution'—where digital systems replace traditional currency due to cash scarcity.
Studies indicate that for the Zimbabwean consumer, the perceived value of a store is
inextricably linked to the 'success rate' of their electronic payment attempt. When
payments fail, the retail experience is perceived as a failure of service delivery, regardless
of product quality. This necessitates a shift in retail strategy where payment system
uptime is viewed as a critical component of service quality rather than a mere back-office
operational detail.
2.4.3 Technological Reliability and Trust
Customer trust is the psychological state comprising the intention to accept vulnerability
based upon positive expectations of the intentions or behavior of another. In the retail
digital landscape, 'Technological Reliability' serves as a surrogate for organizational
trustworthiness. If a checkout system frequently crashes or double-deducts funds, the
consumer loses trust in the retailer’s competence. Research suggests that trust acts as a
mediator: reliable technology leads to trust, which in turn drives long-term customer
loyalty. The lack of infrastructure—such as persistent power supply in Zimbabwe—poses
a unique challenge to maintaining this 'technological reliability,' thereby complicating the
relationship between technology, trust, and ultimate consumer retention.
2.5 Research Gap
While the literature extensively covers the adoption of technology in developed retail
contexts, there is a visible paucity of research concerning 'survival-driven' technology
adoption in hyper-inflationary or resource-constrained environments like Zimbabwe.
Most existing studies assume a stable technological infrastructure where the main barriers
to adoption are user resistance or lack of digital literacy. However, in the Zimbabwean
context, the barriers are often systemic and environmental, such as power outages and
network instability. This study fills this critical gap by empirical testing whether standard
technology acceptance theories hold true when the primary motivation for technology use
is economic necessity rather than convenience preference.