Download Consumer Adoption Intentions Toward the Internet in China

Consumer Adoption Intentions Toward the Internet in China
The Effects of Impersonal and Interpersonal
Communication Channels
Yinghong (Susan) Wei
With the increasing growth of Internet advertising revenues, it is important to understand
Spears School of
what factors may have an impact on consumer intentions to adopt the Internet. This
Business, Oklahoma
State University
study investigates the effects of impersonal and interpersonal communication channels
[email protected]
on consumer intentions to adopt the Internet. Through a stratified random sampling
Gary L. Frankwick
approach, a survey of 3,754 consumers in China was conducted. The structural equation
Spears School of
model results suggest that demographic characteristics (age, education, personal income,
Business, Oklahoma
State University
Gary.frankwick@okstate.
edu
household income); impersonal communication channels/mass media use (newspapers/
magazines, television news); and personal communication channels (word of mouth,
personal selling) influence consumer Internet adoption intentions at home.
Tao (Tony) Gao
College of Business
Administration,
Northeastern University
[email protected]
Nan Zhou
City University of Hong
Kong and
Wuhan University
[email protected]
INTRODUCTION
adoption behavior. The authors investigate how
The Internet is viewed as an innovation (Pres-
use of different communication channels may influ-
cott, 1997) that impacts the structure and growth
ence individual consumer adoption intentions for
potential of national economies in terms of their
personal Internet service at home. Better under-
overall output and employment (DePrince and
standing of different communication channels’
Ford, 1999). From 2005 to 2006, Internet advertis-
effectiveness may help Internet service providers
ing revenue increased 35.2 percent, from $12.5
understand, improve, and adjust their advertising
billion to $16.9 billion (Marketing Fact Book, 2006
decisions when selecting communication channels
and 2007). However, world online population
to reach potential Internet subscribers.
increased only 12.77 percent, from 1.08 billion to
Innovation adoption and diffusion theory (Rog-
1.22 billion. With the increasing growth of Internet
ers, 1971, 1995) suggests that different communi-
advertising revenues, advertisers also expect faster
cation channels—or information sources—may
growth of the online population through increased
influence consumer innovation adoption. As dis-
Internet adoption. To this end, AOL spent $3 bil-
cussed in this study, those channels include the
lion in advertising to increase consumer inten-
following:
tions to adopt Internet service at home (Elkin,
594 JOURNAL
2002) despite advertisers’ and researchers’ limited
• Communication channels: refer to the means
understanding of factors that influence consumer
that communicate the benefits of an innova-
Internet-adoption decisions.
tion (Rogers, 1995) or by which information is
Internet adopters include both organizations and
moved from one point to another (Nilakanta and
individuals. And the tremendous potential for busi-
Scamell­, 1990). Communication channels act as
ness growth through an increase in Internet adop-
important information sources for consumers.
tion may improve local and global economies. The
Both impersonal and interpersonal channels can
focus of this study, however, is individual consumer
transmit communications.
OF ADVERTISING RESEARCH December 2011DOI: 10.2501/JAR-51-4-594-607
Consumer Adoption Intentions Toward the Internet in China
With the increasing growth of Internet advertising
• Traditional studies focus either on the
effectiveness of one-way/impersonal
revenues, it is important to understand what
communication channels (e.g., McPheters, 1991; Rubinson, 2009; Spark-
factors may have an impact on consumer
man, 1985) or on the effectiveness of
two-way/interpersonal
intentions to adopt the Internet.
communica-
tion channels (e.g., Duhan, Johnson,
Wilcox, and Harrell 1997; Fam and
Merrilees,
1998;
Harrison-Walker,
2001; O’Shaughnessy, 1971). Previous
• Impersonal communication channels:
Only limited knowledge exists regard-
research found the effectiveness of each
refer to one-way communication vehi-
ing how consumers use different imper-
type of communication channel when
cles such as various mass media. Mass
sonal and interpersonal communication
they were studied separately; when
media transmit messages through a
channels or how various information
studying them together, however, it is
medium such as television, newspa-
sources might influence consumer inten-
hard to know whether any one channel
pers, magazines, and radio. This study
tions to adopt Internet service at home.
might dominate, causing the other chan-
focuses on three of the major advertis-
Greater understanding of the effectiveness
nel to lose its effectiveness.
ing media—television, newspapers, and
of different communication channels may
This study examines both types of
magazines—because previous research
provide better guidance for Internet serv-
communication channels together and
has suggested that these three are the
ice providers and marketers when mak-
measures their relative impact on con-
most influential in terms of shaping
ing their advertising media and channel
sumer innovation adoption intention
influencing values (Wei and Pan, 1999)
selections.
toward the Internet.
and have the highest daily reach rates in
China (Hung, Gu, and Tse, 2005).
This study contributes to the literature
in several ways:
• Limited
• Interpersonal communication chan-
research
has
investigated
media effectiveness in China over the
nels: refer to two-way communications,
• Although traditional mass media research
past 20 years (See review by Sin, Ho,
including word of mouth and personal
focuses on the effectiveness of different
and So, 2000; Hung et al., 2005). It also
selling.
media through advertising to influence
is difficult to find relevant media or
–– Word of mouth: defined as informal
consumer attitudes (e.g., Assael and
communication-channel studies on Chi-
communication
consumers
Poltrack, 2006; McPheters, 1991; Rubin-
nese consumer intentions to adopt new
about products and services (Liu, 2006).
among
son, 2009; Sparkman, 1985), this study
technology. Thus, there is little under-
–– Personal selling: refers to the formal
investigates the effect of communication
standing of whether and how different
personal communication of informa-
channels through a new perspective:
types of information sources—such as
tion to persuade a prospective cus-
actual consumer communication chan-
impersonal and interpersonal commu-
tomer to buy something (Futrell, 1992).
nel use or preference. For example, some
nication channels—may have an impact
people read newspapers more often than
on consumer adoption intentions toward
The literature suggests that consumers
they watch television. Some people pre-
the new technology: Internet in China.
may assign different values to different
fer to seek information from salespeople
communication channels across product
rather than friends or relatives.
Any new knowledge in any of these areas
categories (Strutton and Lumpkin, 1992).
This study investigates how con-
would benefit Internet service providers
For example, elderly consumers use tele­
sumer media use, communication chan-
and marketers by properly distributing
vision and newspapers as major informa-
nel preference, or habits may impact
the limited promotion resources among
tion sources for grocery items. When they
their adoption attitudes toward the
different communication channels (See
purchase various services, however, they
Internet, which may provide a new
Figure 1).
rely most heavily on interpersonal sources
angle and new evidence for understand-
The following section presents a con-
(friends, spouses, and sales clerks); mass
ing the effectiveness of communication
ceptual framework and hypotheses. Then
media are relegated to a secondary role.
channels.
data collection and data analysis methods
December 2011 JOURNAL
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Consumer Adoption Intentions Toward the Internet in China
A consumer’s intention
Control Variables
Demographic Characteristics:
• Social Status
• Socioeconomic: Personal and Household
• Income
• Education
• Age
to adopt the Internet
can be motivated by
many variables.
Communication Channels
Impersonal Communication Channels –
Media Use:
• Newspapers/Magazines Use
• TV News Use
that affect their adoption include relaConsumers’ Adoption
Intentions Toward
the Internet
Interpersonal Communication Channels:
• Word-of-Mouth
• Personal Selling
tive advantage, compatibility, complexity, trialability, and observability. More
specifically:
• Relative advantage is the degree to
Figure 1 Consumer Adoption Intentions toward the Internet
in China
which an innovation is perceived as better than the idea it supersedes.
• Compatibility is the degree to which
an innovation is perceived as consistent
are described, followed by a presentation
variables. Classical theories of the adop-
with existing values, past experiences,
of the empirical results. Finally, implica-
tion and diffusion of innovations (Rogers,
and needs of adopters.
tions and future research directions are
1971, 1995) have suggested that the adop-
• Complexity is the degree to which an
addressed.
ter’s demographic characteristics and
innovation is perceived as relatively dif-
communication channels impact the inten-
ficult to understand and use.
THEORETICAL FRAMEWORK AND
tion to adopt an innovation. The main
• Trialability is the degree to which an
HYPOTHESES
focus in the current study is the impact of
innovation may be experimented with
Innovation Adoption and Diffusion Theory
using different communication channels
on a limited basis.
The “process of adoption” is defined as
on consumer intentions to adopt Internet
• Observability is the degree to which
the mental process through which an indi-
service at home. However, demographic
the results of an innovation are visible
vidual passes from first hearing about an
characteristics of adopters—such as age,
to users and others.
innovation to final adoption (Rogers, 1971,
education, social status, and income—are
1995). The “process of diffusion” refers to
controlled in the study.
Previous research suggested that an
the spread of an innovation within a social
Innovations have specific features that
innovation or new product would move
system of potential adopters (Rogers,
may lead to different adoption patterns
through the product life cycle more
1971, 1995).
(Rogers, 1971, 1995). Before moving to the
quickly if communication channels help
A major difference between the adop-
hypothesis section, the five attributes of
consumers recognize these five attributes
tion process and the diffusion process
innovation and the four attributes of com-
of innovation (e.g., Rogers, 1995). Under-
is that diffusion occurs among persons;
munication channels are introduced and
standing relative advantages and com-
adoption, by contrast, is an individual
discussed to help build the hypotheses.
patibility makes consumers more likely
matter. This study focuses on individual
to perceive potential innovation benefits
consumer Internet adoption decision-
Innovation Attributes That Affect Adoption
and value (Moore and Benbasat, 1991).
making processes rather than Internet dif-
An “innovation” is defined as an idea,
Moreover, if communication channels can
fusion among consumers.
practice, or object perceived as new by
connect consumers well on complexity,
A consumer’s intention to adopt the
an individual or unit of adoption (Rog-
trialability, and observability of an inno-
Internet can be motivated by many
ers, 1995). Characteristics of innovations
vation, their perceptions of potential risk
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Consumer Adoption Intentions Toward the Internet in China
may be reduced because of less uncer-
• Bias is the extent to which the mes-
understand it with little effort (Bettman,
tainty in the innovation adoption process.
sage from the channel might objectively
Luce, and Payne, 1998). Newspapers/
provide both positive and negative
magazines also are able to provide step-
information.
by-step details to explain technical chal-
By
contrast,
if
consumers
cannot
recognize­ the compatibility and con-
lenges, which may help users gain specific
nectivity of a new product or innovation
with existing products or technologies,
Communication theorists argue that
Internet knowledge, minimizing complex
they may hesitate in or resist adopting the
communication channels differ in many
issues related to the Internet without time
new product or innovation. Therefore, if
ways that may affect user perceptions
constraints. Moreover, the high credibility
consumer use of various communication
(Burke and Chidambaram, 1999; Wells
and low bias of newspapers/magazines
channels can help them connect or under-
and Hakanen, 1997). The following section
also helps users understand the Internet’s
stand these five perceived value and risk
builds hypotheses by showing how the
compatibility and observability.
reductions in innovations, their adop-
four attributes of communication chan-
Newspaper/magazine readership has
tion intentions toward the Internet may
nels may help consumers connect the five
expanded rapidly in China, one of the
increase. The research findings presented
attributes of innovation to facilitate their
fastest growing economies in the world.
here may contribute greatly in accelerating
adoption intentions toward the Internet.
In contrast to U.S. magazines and news­
papers, Chinese magazines and newspa-
the lifecycle and future-adoption phase of
the Internet.
IMPERSONAL COMMUNICATION
pers rely on subscription revenue rather
CHANNELS
than advertising revenue as their main
1
Attributes of Communication Channels
Print Media: Newspapers/Magazines
source of income (Hung et al., 2005). Chi-
Drawn from media and communica-
Newspapers and magazines have high
nese consumers perceive newspapers as
tion literature, the study identifies four
ambiguity-resolving capacity and rich
having more integrity and consider maga-
attributes to differentiate communica-
written text, which can thoroughly present
zines as newsworthy (Hung et al., 2005).
tion channels (See Appendix 1): content,
the relative advantages of the Internet.
This argument suggests Hypothesis 1:
ambiguity-resolving capacity, credibility,
The concrete information from newspa-
and bias.
pers/magazines could help consumers
easily process complex information and
• Content is the information that the
channel delivers. The content of communication channels consists of text,
images, audio, and visuals (Hoffman
and Novak, 1996).
• Ambiguity-resolving capacity is the
degree to which channels may allow
communicators to clarify and reduce
message
equivocality
or
ambigu-
ity by its concrete information (Burke
and Chidambaram, 1999). Equivocality means confusion, disagreement, or
lack of understanding, whereas ambiguity means the existence of multiple
and conflicting interpretations about
an objective or issue (Daft, Lengel, and
Trevino, 1987).
• Credibility means how much people
are willing to alter their attitudes toward
certain topics due to certain sources or
channels (Kiousis, 2001).
H1:
Newspaper and magazine use
is positively associated with
the intention to adopt Internet
The research shows that the Chinese news media are major
sources of social knowledge, serving as a way for the general public to make sense of the changing environment both
within and outside Chinese policy (Chang, Wang, and Chen,
1994). Based on their quantitative and qualitative content
analysis, the main themes on the national television news
include 30 percent national development; 25 percent economic reform; 11 percent religious/ethnic conflicts; 6 percent
racial issues; 6 percent relations with developing countries;
5.6 percent sovereignty; 4.9 percent regional cooperation­;
3 percent aggression/repression; 3 percent socialism;
3 percent communism; 1.9 percent democracy/ democratic
reform; 1.9 percent terrorism; 1.2 percent nuclear arms proliferation; and 1.2 percent rich–poor/north–south divisions.
The main themes of the national newspaper news include
31 percent economic reform; 19 percent national development; 10.4 percent regional cooperation; 8.8 percent sovereignty; 5.6 percent religious/ethnic conflicts; 4.8 percent
racial issues; 4.1 percent socialism; 2.2 percent relations
with developing countries; 1.9 percent aggression/repression; 1.9 percent democracy/democratic reform; 1.8 percent nuclear arms proliferation; 1.8 percent social justice;
1.3 percent Mao Zedeng thought; 1.3 percent rich–poor/
north–south division; 1.1 percent communism; 1.1 percent
power struggle; 0.8 percent capitalism; 0.8 percent human
rights and freedom; and 0.8 percent terrorism. Our measure
for television news and newspaper use included these two
national sources.
1
service.
Visual Media: Television News
Compared with print media, television
news has lower ambiguity-resolving capability due to limited concrete text. Television news’s high audio and visual content,
however, may easily present benefits of
the Internet—among them, interactivity, compatibility with other media, and
observability to consumers.
Like newspapers/magazines, television
news is considered to have low bias and
high credibility, which may help television
news users easily accept the Internet’s
compatibility and observability.
Television also is one of the dominant
media in China, reaching 89 percent of the
population (Hung et al., 2005). National
television news from Chinese Central
December 2011 JOURNAL
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Consumer Adoption Intentions Toward the Internet in China
Television (CCtelevision) functions as the
as conversations and written and audio-
The ability to process equivocal and
premium message in China and a reliable
visual materials to communicate with
ambiguous information through word
source of information, especially for new
potential consumers.
of mouth may help consumers easily
products (Hung et al., 2005). This discussion suggests Hypothesis two:
H2:
Its high ambiguity-resolving capacity
understand­the complexity of the Internet.
may help consumers easily understand
Due to close relations, receivers still give
the Internet’s advantages, complexity,
high credibility to word-of-mouth infor-
Television news use is positively
compatibility, and observability. This com-
mation despite its potential to be highly
associated with intention to
munication channel also may provide a
biased.
adopt Internet services.
hands-on opportunity for consumers to
try the Internet. Due to high bias and low
H4:
Word of mouth is positively
Interpersonal Communication Channels
credibility, however, one challenge for this
associated with the intention to
The literature suggests that consumers use
communication channel is how to con-
adopt Internet service.
a variety of recommendation sources for
vince consumers to trust the information
decision making.
provided by the sales force.
Some prefer to use strong-tie sources:
someone who knows the decision maker
COMPARATIVE EFFECTIVENESS
An additional aim of the study is to com-
Personal selling is positively
pare effectiveness of impersonal and
personally, such as friends and family; and
H3:
associated with the intention to
interpersonal communication channels in
others may use weak-tie sources: someone
adopt the Internet.
influencing Internet adoption.
who is merely an acquaintance or does not
Media-richness theory posits that com-
know the decision maker at all, such as
Word of Mouth
munication channels vary in their abil-
experts or strangers (Duhan et al., 1997).
Word of mouth refers to “informal, person-
ity to process equivocal and ambiguous
The advantage of strong-tie recommen-
to-person communication between a per-
information (Daft et al., 1987). Communi-
dation sources—such as word of mouth—
ceived noncommercial communicator and
cation is relatively “rich” when the act of
is that they can simultaneously evaluate
a receiver regarding a brand, a product,
communication provides substantial new
the decision maker and the product alter-
an organization, or a service” (Harrison-
understanding (Lengel and Daft, 1988).
natives to provide information custom tai-
Walker, 2001, p. 63).
Acquiring information may reduce uncer-
lored to decision-maker preferences.
Word of mouth exists in the everyday
tainty, whereas an exchange of subjective
The advantage of weak-tie recommen-
world and is perceived as more credible
views among individuals may resolve
dation sources is that they are not limited
and trustworthy than other information
equivocality and ambiguity.
to the social circle of the decision maker,
sources (Liu, 2006). Previous research sug-
Individuals use rich media for ambigu-
and there is a greater likelihood of finding
gests that word of mouth can have a great
ous communications and less-rich media
more and better information from some-
impact on those who are exposed because
for unequivocal communication. Chan-
one with greater expertise regarding the
product, such as a salesperson or storekeeper (Duhan et al., 1997).
nels higher in richness are preferred
• there is an opportunity for feedback and
clarification;
when processing equivocal information
because such channels possess a number
• receivers perceive the advice to be more
of unique characteristics that promote
Personal Selling
reliable and trustworthy because there
a shared understanding. For example,
Personal selling involves direct personal
is no personal interest in recommending
face-to-face communication—the richest
communications between a consumer and
a particular brand or a certain product;
channel—provides multiple cues such as
a salesperson, the latter conveying the
• personal contacts generally are able to
facial expression, tone, natural language,
benefits of the product or service to the
offer social support and encouragement
and immediate feedback. As such, it aids
former (Fam and Merrilees, 1998).
(e.g., Cheung, Anitsal, and Anitsal, 2007;
the process of understanding difficult
Consumers increasingly are turning
Day, 1971). Thus, as a two-way com-
information. By contrast, lean commu-
to sales people as a source of informa-
munication method, its conversation
nication—written
tion and reliability (Fam and Merrilees,
content may easily spread the Inter-
instance—might be adequate in a situa-
1998; O’Shaughnessy, 1971) because per-
net’s advantages, compatibility, and
tion where shared understanding already
sonal selling may employ methods such
observability.
exists.
598 JOURNAL
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communication,
for
Consumer Adoption Intentions Toward the Internet in China
Previous literature found word of
population statistics (http://www.Inter-
of the confidentiality of their responses. In
mouth to be seven times more effective
networldstats.com/stats.htm), by Decem-
addition to controls by the research firm,
than newspaper/magazine advertising
ber 31, 2009, 384 million users (28.7 percent
an experienced research assistant was
and four times more effective than per-
of the Chinese population) were using the
hired independently and traveled to seven
sonal selling in influencing consumers to
Internet in China. The United States had
of the nine cities to monitor the fieldwork.
switch brands (e.g., Katz and Lazarsfeld,
235 million Internet users (76.3 percent of
More than 60 percent of the participants
1955; Day, 1971). Another study tried to
the American population). China, how-
were telephoned to confirm that the inter-
identify information source preferences
ever, had the largest Internet population
views had been conducted. No cheating
individuals apply in information seeking
in the world (Riegner, 2008, p. 496), and its
by field workers was evident.
and decision making (Stefl-Mabry, 2003);
digital audience represented 57 percent of
the results suggested that, as influential
the total world population of 676 million.
Measures and Validation
information sources, expert oral advice
Internet user growth rate from 2000 to
The measures reported in Table 1 were
and word of mouth were preferred to (or
2009 for the United States was 145.8 per-
developed on the basis of literature. Most
provided more information satisfaction
cent, whereas for China it was 1,606.7 per-
measures use five-point Likert scales.
than) print news—including newspapers/
cent—far above the worldwide average
The current study used the following
magazines—and television news.
rate of 399 percent. This is why researchers
instruments:
Media-richness
theory
and
previ-
and practitioners are interested in know-
ous literature findings thus suggest that
ing what factors may impact Chinese non-
impersonal communication channel use
user Internet adoption intention.
• Intention to adopt the Internet was
measured by one item: “How likely
can help consumers acquire new infor-
This study is composed of a large-scale
is it that you will adopt the Internet
mation to reduce uncertainty whereas
survey from nine different cities in China.
at home?” with a scale ranging from 1
interpersonal
communication-channel
The cities were selected to represent
= “completely unlikely” to 5 = “com-
use can help consumers exchange views
regions of high economic development
pletely likely.”
with others to resolve equivocality and
(Beijing, Shanghai, and Guangzhou in the
• Newspaper/magazine use (α = 0.72)
ambiguity. Interpersonal communication
key and coastal regions); medium devel-
was assessed with four items: “How
channels, however, may be more effective
opment (Nanjing, Wuhan, and Chengdu
often do you read (1) reference news,
than impersonal communication chan-
in the central region); and a low level of
(2) news magazines, (3) business news-
nels because of richness from the nature of
development (Xian, Changchun, and Gui-
papers/magazines, and (4) the national
two-way communications.
yang in the northwest region), based on
newspaper” with a scale ranging from
average income.
H5:
Impersonal
communication
channels
less
are
1 = “never” to 5 = “every day.”
From each city, 440 consumers were
• Television-news use (α = 0.65) was
positively
selected through a stratified random-
measured by two items: “How often do
associated with the intention
sampling approach. Thus, 3,964 par-
you watch: (1) national television news,
to adopt Internet service than
ticipated in the study. Because the study
and (2) local television news,” with a
interpersonal
focused on what factors influence adop-
scale ranging from 1 = “never” to 5 =
communication
channels.
tion intentions of non-Internet users, 210
consumers who already had adopted
“every day.”
• Word of mouth was assessed by one
RESEARCH METHODOLOGY
Internet service at home were deleted.
item:
Sample and Data Collection
Therefore, the total available observations
ing valuable consumer products, how
China was selected for testing the hypoth-
for this study are 3,754.
would you rate the importance of rec-
“When
considering
purchas-
eses because it represents countries with
The survey was conducted through
ommendations of relatives and friends,”
great opportunities for Internet adop-
face-to-face interviews. As non-mainland
with a scale ranging from 1 = “very
tion and diffusion. There is a huge gap
Chinese researchers were not permitted
unimportant” to 5 = “very important.”
between the United States and China in
to make direct contact with mainland
• Personal selling was measured by
terms of Internet penetration rate. Accord-
residents, a major research company was
one item: “When considering pur-
ing to the China Internet Network Infor-
commissioned to conduct the interviews.
chasing valuable consumer products,
mation Center and world Internet-use and
All respondents were informed in advance
how would you rate the importance of
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Consumer Adoption Intentions Toward the Internet in China
Table 1
Measurements, Reliability Analysis, and Confirmatory Factor
Analysis
Item-to-Total
Correlation
Constructs and Items
STD
Factor
Loading t-Value
salary, bonuses, subsidies, part-time job
income, and income from investments,
etc.): 1 = 300 or less yuan; 2 = 301–600
yuan; 3 = 601–800 yuan; 4 = 801–1,000
yuan; 5 = 1,001–1,200 yuan; 6 = 1,201–
1,500 yuan; 7 = 1,501–2,000 yuan; 8 =
2,001–2,500 yuan; 9 = 2,501–3,000 yuan;
and 10 = more than 3,000 yuan.
Impersonal Communication Channels—Mass Media Use (How often do you read
newspapers and watch television?) (Never 1 – Every Day 5)
• Consumer education was measured
by asking: “Your education level is: 1 =
Print Media—Newspaper/Magazine Use (α = 0.72)
lower than primary, 2 = primary school,
Reference News
0.51
0.64
Scaling
News Magazines
0.52
0.64
26.91
Business Newspapers and Magazines
0.49
0.61
26.19
secondary, 6 = university and above.
• Consumer age was measured by asking:
National Newspapers
0.49
0.60
26.02
National Television News
0.48
0.95
Scaling
Local Television News
0.48
0.52
10.67
Visual Media—Television News Use (α = 0.65)
3 = junior high school, 4 = senior high/
secondary/technical school, 5 = post-
“Your age (by last birthday) is: ___ years
old.
After examining the data to ensure that
Demographic Characteristics
all variables displayed normal distribu-
Social Status (Please read the following statements carefully and rate how would you agree
with each statement) (Totally disagree 1 – Totally agree 5) (α = 0.75)
analysis (CFA) of all measures was run.
tion patterns, a single confirmatory factor
The fit indexes reported indicate that the
I feel I am inferior in every aspect
0.60
0.74
Scaling
My social status is gradually dropping
0.65
0.82
28.44
132.44, normed fit index (NFI) = 0.98; incre-
People do not respect me as much as before
0.49
0.56
27.75
mental fit index (IFI) = 0.98; comparative
model fits the data well (See Table 1): c2(24) =
fit index (CFI) = 0.98; Tucker-Lewis index
Notes: Model Fit: c2(24) = 132.44, NFI = 0.98, IFI = 0.98, TLI = 0.97, CFI = 0.98, RMSEA = 0.035
(TLI) = 0.97; and root mean square error of
approximation (RMSEA) = 0.035. No cor-
recommendations of the sales person,”
before,” with a scale ranging from 1 =
relations among measurement items and
with a scale ranging from 1 = “very
“totally disagree” to 5 = “totally agree.”
measurement errors were allowed. All
• Household income was assessed by
items loaded on their respective constructs
asking “To which of the following cat-
with each having large coefficients. All
Because demographic characteristics may
egories does your household’s average
t-values for factor loadings of constructs
have an impact on innovation-adoption
monthly income belong (including sal-
were significant; there was no evidence
intention (Rogers, 1995), social status,
ary, bonuses, subsidies, part-time job
of cross-loadings, indicating convergent
household income, personal income, edu-
income, and income from investment,
validity. Further, all of the constructs had
cation, and age were controlled in the
etc.): 1 = less than 600 yuan; 2 = 601–
good reliability, with alphas over 0.65
study.
1,000 yuan; 3 = 1,001–1,500 yuan; 4 =
(Churchill, 1979) and composite reliabili-
unimportant” to 5 = “very important.”
1,501–2,000 yuan; 5 = 2,001–2,500 yuan;
ties ranging from 0.72 to 0.75 (Fornell and
• Social status (α = 0.75) was measured
6 = 2,501–3,000 yuan; 7 = 3,001–4,000
Larcker, 1981). We also checked the item-to-
by three items: “Please read the follow-
yuan; 8 = 4,001–5,000 yuan; and 9 =
total correlations and found no deviations
ing statements carefully and rate how
more than 5,000 yuan.
from the internal and external consistency
you would agree with each statement:
• Personal income was assessed by ask-
(1) I feel I am inferior in every aspect, (2)
ing “To which of the following cat-
The correlation matrix and descriptive
my social status is gradually dropping,
egories does your personal average
statistics of the measures are presented in
(3) people do not respect me as much as
monthly
Table 2. Composite reliabilities for each
600 JOURNAL
OF ADVERTISING RESEARCH December 2011
income
belong
(including
criteria (Gerbing and Anderson, 1988).
Consumer Adoption Intentions Toward the Internet in China
Table 2
Correlation Matrix and Descriptive Statistics of Measures
Variables
1
2
3
4
5
6
7
8
9
10
1.
Intention to Adopt the Internet
–
–
–
–
–
–
–
–
–
–
2.
Newspaper/Magazine Use
0.22
0.40
0.11
–
–
0.01
–
–
–
–
3.
Television News Use
0.04a
0.24a
0.59
–
–
0.00
–
–
–
–
4.
Personal Selling
0.07a
0.11a
–0.05
–
–
0.00
–
–
–
–
5.
Word-of-Mouth
0.11
0.06
a
–0.06
0.12
–
–
–
–
–
–
6.
Social Status
–0.12a
–0.09a
0.01
–0.05a
–0.10a
0.51
–
–
–
–
7.
Household Income
0.29a
0.13a
–0.00
0.01
0.09a
–0.16a
–
–
–
–
8.
Personal Income
0.24
0.12
a
–0.02
–0.02
0.07
–0.16
0.62
–
–
–
9.
Education
0.26a
0.29a
0.02
0.05a
0.13a
–0.09a
0.26a
0.26a
–
–
10.
Age
–0.21a
–0.10a
0.23a
–0.11a
–0.16a
0.12a
–0.02
0.10a
–0.24a
–
Mean
2.42
2.62
4.16
3.08
3.36
2.40
3.40
3.11
4.06
37.87
Standard deviation
1.02
0.82
0.84
0.93
0.96
0.71
1.70
1.63
0.95
9.22
Cronbach’s alpha
–
0.72
0.65
–
–
0.75
–
–
–
–
Composite reliability
–
0.72
0.72
–
–
0.75
–
–
–
–
a
a
a
a
a
a
a
a
p < 0.01 (two tailed), bp < 0.05 (two tailed).
Notes: AVE is shown on the diagonal. The upper-right triangle elements are the shared variance. The lower-left triangle elements are correlations among composite measures (unweighted mean
of the items for each construct). We used five-point scales for all variables except for family income, personal income, education, and age.
scale also were calculated using the pro-
model. All c2 differences were significant,
unrelated to at least one other variable
cedures outlined by Fornell and Larcker
which suggests convergent and discrimi-
included in the study, such as respond-
(1981; See Table 2). Composite reliabilities
nant validity among all of the study’s con-
ent’s age or education, and whether the
for the scales ranged from 0.68 to 0.81,
structs (Bagozzi, Yi, and Phillips, 1991).
respondent was willing to adopt the Inter-
indicating acceptable construct reliability.
Overall, the constructs exhibited good
net at home) served as a marker variable to
Discriminant validity was assessed using
measurement properties. The tests suggest
control or partial out the potential consist-
two different methods. First, the average
that the constructs possess reliability, uni-
ency motive and/or social desirability.
variance extracted (AVE) for each con-
dimensionality, and discriminant validity.
After adjusting for partial correlations,
struct was assessed using the procedures
Common method-variance problems
outlined by Fornell and Larcker (1981).
occur when independent and depend-
remained significant. The pattern of esti-
AVEs were then compared with the corre-
ent measures are collected from the same
mated coefficients in the structural equa-
sponding shared variance for all possible
sources (Podsakoff, MacKenzie, Lee, and
tion model (SEM) remained the same
pairs of constructs (Anderson and Gerb-
Podsadoff, 2003). Some statistical rem-
when the marker variable was added.
ing, 1988).
edies are available to control for method
Thus, common method-variance bias is
all
significant
zero-order
correlations
Discriminant validity was tested by
biases. One type of partial correlation
not a serious problem in this study (Lindell­
using two-factor CFA models involving
recommended procedure was conducted
and Whitney, 2001).
each possible pair of constructs, with the
here (Lindell and Whitney, 2001).
ANALYSIS AND RESULTS
correlation between the two constructs
In the questionnaire, respondents were
first freely estimated and then constrained
asked, “How would you agree with this
The
to one (See Table 2). In all cases, the c2
statement: the leaders of my company are
tested in a single SEM model. The hypoth-
value of the unconstrained model was
familiar with the production procedures?
esized model fit the data well, as indicated
significantly lower than the constrained
(scale 1 to 5).” This item (theoretically
by fit indices of c2(160) = 579.18, NFI = 0.95;
hypothesized
December 2011 JOURNAL
relationships
were
OF ADVERTISING RESEARCH 601
Consumer Adoption Intentions Toward the Internet in China
IFI = 0.95; CFI = 0.95; TLI = 0.91; RMSEA =
0.046 (See Table 3).
Assessing the five hypotheses:
• The coefficient of personal selling is 0.03
intentions toward the Internet: the more
(t = 2.20). Hence, H4 is also supported.
consumers perceive low social status,
Personal selling does have significant
the less likely that they intend to adopt
influence on consumer adoption inten• The SEM coefficient indicates that use
the Internet.
• Socioeconomic situation shows signifi-
tions toward the Internet.
of newspapers/magazines has a sig-
• Comparing the coefficients for imper-
cant and positive effects on consumer
nificant positive impact on consumer
sonal (mass-media use) and interper-
adoption intentions: household income
intentions to adopt the Internet (0.15, t
sonal communication channels suggests
(0.17, t = 8.96) and personal income
= 6.48), and, therefore, H1 is supported.
that impersonal communication chan-
(0.11, t = 5.41).
• The coefficient of television news use on
nels are more effective than interper-
• It seems that household income is a
consumer intentions to adopt the Inter-
sonal communication channels. Thus,
more important indicator than personal
net is 0.06 (t = 2.54). Thus, television
the data did not support the media-
income for explaining consumer adop-
news use (H2) has a significant positive
richness theory. H5 is not supported.
tion intentions.
• Education also significantly and posi-
effect on consumer adoption intentions,
Control Effects
and H2 is supported.
• The SEM coefficient indicates that
word of mouth has a significant posi-
tively
The coefficients of five control variables
supported.
consumer
adoption
intentions (0.08, t = 4.89).
• However, age (–0.18, t = –10.19) has
are significant:
tive impact on consumer intentions to
adopt the Internet (0.04, t = 2.47). H3 is
impacts
a significant negative impact on con• Social status (–0.03, –t = 1.84) has mar-
sumer adoption intentions: younger
ginal impact on consumer adoption
consumers are more likely to adopt the
Internet than older consumers.
DISCUSSION
Table 3
Results of SEM
The goal of this study was to determine
the effects of impersonal and interpersonal
STD
Coefficient
communication channels on individual
t-Value
consumer adoption intentions toward
the Internet. The authors believe that the
Communication Channels
results enhance our understanding of how
Impersonal—Mass Media Use:
H1: Newspaper/Magazine Use
→ Intention to Adopt Internet
0.15***
6.48
H2: Television News Use
→ Intention to Adopt Internet
0.06
2.54
**
to increase Internet adoption intentions
through proper communication channel
selection.
The results indicate that the use of
Interpersonal:
H3: Word-of-Mouth
→ Intention to Adopt Internet
0.04**
2.47
H4: Personal Selling
→ Intention to Adopt Internet
0.03*
2.20
newspapers/magazines positively affects
consumer intentions to adopt the Internet. Newspapers/magazines have some
unique attributes. They are, for example,
Control Variables
able to provide detailed text information
Demographic Characteristics:
(such as technical specification) and can
Social Status
→ Intention to Adopt Internet
–0.03
–1.84
Household Income
→ Intention to Adopt Internet
0.17***
8.96
tions with no time constraints. These
Personal Income
→ Intention to Adopt Internet
0.11***
5.41
unique attributes can be used to explain
Education
→ Intention to Adopt Internet
0.08***
4.89
Age
→ Intention to Adopt Internet
–0.18***
–10.19
Notes: Model fit: c2(160) = 579.18, NFI = 0.95, IFI = 0.95, TLI = 0.91, CFI = 0.95, RMSEA = 0.046. *p < 0.05, **p < 0.01,
***p < 0.001.
602 JOURNAL
OF ADVERTISING RESEARCH December 2011
demonstrate the steps of Internet func-
how the Internet may satisfy various consumer needs, such as entertainment needs,
search needs, social needs, cognitive
needs, and new and unique needs (Sheehan, 2002). Thus, newspapers/magazines
Consumer Adoption Intentions Toward the Internet in China
can effectively influence potential Internet
results from this study imply that news-
presenting new wisdom for future aca-
adopter intentions.
papers/magazines are the most valuable
demic research.
Results also indicate that television-
means among the four communication
Based on these four media attributes,
news use positively affects consumer
channels studied, suggesting that print
this research theoretically argues that
intentions to adopt the Internet. The
media are particularly efficient for con-
communication channels differ along
audio­visual and unbiased attributes make
vincing people about the advantages of
these four attributes and that different
television news another strong channel for
new products (Hugues, 1975).
communication channels may convey
potential consumers to know more about
Media-substitution theory may provide
the Internet’s characteristics to con-
the Internet. Television news often focuses
another way to understand this result.
sumers through their unique channel
on concrete events that illustrate the
Media-substitution theory suggests that
attributes.
issues, which makes it easy for consumers
new media such as the Internet can com-
to accept the Internet’s relative advantage,
pete against and displace traditional
• The SEM results indicate that consumer
compatibility, and observability (Sotirovic,
media in attracting consumer attention
adoption intentions toward the Internet
2003). Thus, using television news to pro-
and use (Kaye and Johnson, 2003; Kayany
are influenced by the use of both imper-
mote Internet adoption may lead to con-
and Yelsma, 2000; Lin, 2006). As a new
sonal (newspaper/magazine and tele­
sumer favorable attitudes.
medium, the Internet not only can provide
vision news) and interpersonal (word
Personal selling and word of mouth
information and entertainment utilities to
of mouth and personal selling) com-
can significantly increase consumer inten-
consumers as the traditional media do but
munication channels. Among the com-
tions to adopt the Internet. Personal sell-
offers additional utilities such as escape
munication channels examined in this
ing is an effective method to identify
and social interactions, which the tradi-
study, newspapers and magazines are
consumer issues and then employ poten-
tional media do not (Ferguson and Perse,
the most valuable channels to influence
tial resources such as written and audio-
2000; Kaye and Johnson, 2003).
consumer intentions toward Internet
visual materials to resolve those issues. It
Compared with other media users or
is easy for consumers to see (and under-
consumers who like interpersonal com-
stand) the Internet’s advantages, com-
munications, heavy print media users,
• This study may enrich the limited Inter-
plexity, compatibility, and observability
therefore, may have much stronger moti-
net adoption literature by providing
when sale forces use face-to-face conver-
vation to adopt the Internet as they view it
new evidence from a less studied but
sations and professional demonstrations
as a new and integrative source for receiv-
promising context: China.
to engage consumers. Word of mouth also
ing the same utilities, especially given the
is an effective channel for consumers to
infinite amount of time available online to
• These findings may also provide rich
experience how other Internet users feel. It
read print media contents (Chan-Olmsted,
managerial implications to Internet
is easy to use this communication channel
Li, and Jung, 2005; Ferguson and Perse,
service providers or marketing man-
to solve potential concerns through con-
2000).
agers and help them develop proper
versations with other experienced Internet
adoption.
strategies to attract new home Internet
adopters. Potential consumers may trust
THEORETICAL CONTRIBUTIONS AND
subscribers. Specifically:
the information sent from their friends
MANAGERIAL IMPLICATIONS
–– The findings suggest that selecting
and relatives, which makes it easy to sell
This research contributes to communica-
mass media for advertising and pro-
the Internet’s advantages, compatibility,
tion channel literature in several respects:
motion of Internet services provides
and observability.
strong outlets to influence consumer
Media-richness theory suggests that
• Drawn from broad communication lit-
adoption intentions toward the Inter-
face-to-face communication such as word
erature, four important attributes are
net through their unique attributes.
of mouth or personal selling is the richest
identified (content, ambiguity-resolving
Newspapers/magazines
medium because of potential immediate
capacity, credibility, and bias) for com-
to explain the innovation in detail,
feedback, combination of audio and visual
munication
four
introduce deep knowledge, and solve
channels, potential of personal messages,
attributes may provide a new approach
consumer concerns. Television news
and variety of linguistic forms (Barry and
to
differences
can vividly demonstrate the rela-
Crant, 2000, p. 650). However, empirical
between communication channels, thus
tive advantages, compatibility, and
channels.
understanding
the
These
December 2011 JOURNAL
are
able
OF ADVERTISING RESEARCH 603
Consumer Adoption Intentions Toward the Internet in China
observability of the innovation with-
practice, its several limitations also offer
complex interaction effects among dif-
out bias.
fertile avenues for further research:
ferent mass media (Drexler, 2000). How
–– The findings also suggest that another
do different mass media interact with
way for Internet service provid-
• This study was conducted in China. The
each other? Will the interactions impact
ers and marketers to increase future
question of whether the results can be
consumer intentions to adopt the Inter-
Internet adoption is through word of
applied to other developing countries
net? These questions remain for future
mouth or personal selling. For exam-
leaves an opportunity to replicate it in
research.
ple, providers may wish to build
other contexts to draw clearer conclu-
good, long-term relationships with
sions. Moreover, this is a one-point-in-
In conclusion, the study presented
current customers because they may
time study. It would be interesting to
empirical evidence about Internet adop-
then spread the good word to rela-
examine the impact of life-cycle behav-
tion intentions from consumers in China
tives and friends. Their relatives and
ior and the acceleration of technology
through a stratified random sampling
friends may be more willing to listen
on Internet adoption intentions through
approach. The empirical results indicate
to current customers and trust their
a longitudinal lens.
that consumer intentions to adopt the
Internet at home are influenced by their
opinions in the Internet adoption
• This study focuses on individual-level
demographic characteristics (age, educa-
Furthermore, personal selling is
factors that may have an impact on
tion, personal income, household income);
another potential method. To that
consumer-adoption intentions. Further
impersonal communication channel/mass
end, Internet service providers, Inter-
research is needed for cross-cultural
media use, including newspapers/maga-
net advertisers, and Internet market-
studies that may provide chances to
zines and television news; and personal
ers should make an effort to sharpen
study macro-level factors related to
communication channels—word of mouth
their sales employees’ skills. For
consumer
and personal selling. example, providing good job train-
example, some countries may set vari-
ing and various vivid demonstration
ous obstacles to Internet use, such as
Yinghong (Susan) Wei is assistant professor of marketing
materials may help sales employees
political control over content (Huang
in the Spears School of Business at Oklahoma State
improve their selling capabilities.
and Hao, 1998), inadequate telecom-
University. Her research interests focus on the interface
munication
between marketing strategy and strategic management,
decision-making process.
adoption
intentions.
infrastructure,
For
operating
• These findings also indicate that print
costs beyond ordinary consumer afford-
including market orientation, innovation management,
media such as newspapers/magazines
ability, and language barriers posed by
new product development, corporate entrepreneurship,
should be the first (and best) media
the English-dominant Internet (Zhu and
business-to-business marketing, and learning theory.
selection choice for Internet service pro-
Zhou, 2002).
Her research has been published in journals and
viders and marketers.
It is interesting—and important—to
conference proceedings such as the International
Consumers who read newspapers/
study how consumers handle this infor-
Journal of Research in Marketing, Industrial Marketing
magazines simply are much more likely
mation in their decision-making proc-
Management, and Journal of Product and Innovation
to adopt the Internet at home compared
esses toward Internet adoption.
Management.
with consumers who prefer other media
or communication channels. Advertis-
• Due to the limitations of the data set,
Gary L. Frankwick is associate professor of marketing
ing more in newspapers/magazines
the study focused on only two types
in the Spears School of Business at Oklahoma State
and having more promotions in them
of mass-media channels: newspapers/
University. Dr. Frankwick’s research and teaching
might be the most effective way for pro-
magazines and television news. Future
interests include marketing strategy, sales, business-
viders to increase consumer Internet
research should extend to other types of
to-business marketing, and new product development.
adoption rates.
mass-media channels such as radio and
His research has been published in the Journal of
movies. Furthermore, the communica-
Marketing, Journal of Business Research, Journal of
LIMITATIONS AND DIRECTIONS FOR
tion channels could be complementary
Product Innovation Management, Journal of Supply
FURTHER RESEARCH
to one another. It is common to use dif-
Chain Management, Sloan Management Review,
Although this study provides new results
ferent media channels during the same
Journal of Personal Selling & Sales Management, and
to
period. Indeed, there might be very
Journal of Marketing Theory and Practice.
innovation-adoption
604 JOURNAL
research
and
OF ADVERTISING RESEARCH December 2011
Consumer Adoption Intentions Toward the Internet in China
Tao (Tony) Gao is an assistant professor of marketing in
the College of Business Administration at Northeastern
University. He conducts research primarily on
Barry, B., and J. M. Crant. “Dyadic Com-
DePrince, A. E. Jr., and W. Ford. “A Primer on
munication Relationships in Organizations: An
Internet Economics.” Business Economics 34, 4
Attribution/Expectancy Approach.” Organiza-
(1999): 42–50.
tion Science 11, 6 (2000): 648–664.
management of customer relationships, marketing
innovations, and international marketing, especially
marketing involving Chinese firms and consumers. He
has been published in Journal of Business Research,
Journal of Business Ethics, and Journal of Interactive
Marketing.
Drexler, M. D. “Future for Media Requires
Bettman, J. R., M. F. Luce, and J. W. Payne.
Interaction.” Advertising Age 71, 48 (2000):
“Constructive Consumer Choice Process.” Jour-
2–3.
nal of Consumer Research 25, December (1998):
187–217.
Duhan, D. F., S. D. Johnson, J. B. Wilcox,
and G. D. Harrell. “Influences on Consumer
Nan Zhou (PhD University of Utah) is professor,
department of marketing, City University of Hong Kong,
and Changjiang Chair Professor, Wuhan University,
China. A leading researcher in advertising and marketing
Burke, K., and L. Chidambaram. “How Much
Use
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Appendix 1
Comparison of the Attributes of Communication Channels
Communication
Channels
Content*
Ambiguity-Resolving
Capacity
Hi/Low
Credibility
Hi/Low
Bias
Newspaper/Magazine
T, I
High
High
Low
Television News
A, V, (T)
Low
High
Low
Word of Mouth
C
High
High
High
Personal Selling
C, AV, (T)
High
Low
High
* T = text, I = image, A = audio, V = visual, (T) = minor amount of text content, AV = audiovisual, C = Conversation.
December 2011 JOURNAL
OF ADVERTISING RESEARCH 607
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