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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 OF ADVERTISING RESEARCH 595 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 596 JOURNAL OF ADVERTISING RESEARCH December 2011 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 OF ADVERTISING RESEARCH 597 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 OF ADVERTISING RESEARCH December 2011 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 December 2011 JOURNAL OF ADVERTISING RESEARCH 599 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. 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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 Copyright of Journal of Advertising Research is the property of Warc LTD and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.