An examination of factors influencing consumer ... - Wiley Online Library

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An Examination of Factors Influencing Consumer Adoption of Short Message Service (SMS) Gil Son Kim and Se-Bum Park Korea Advanced Institute of Science and Technology, Korea

Jungsuk Oh Seoul National University, Korea

ABSTRACT Factors related to consumer adoption of short message service (SMS) are analyzed in this article. Our structural equation model identifies perceived enjoyment (PENJ), perceived monetary value (PMV), perceived usefulness (PU), and perceived ease of use (PEU) as four major factors that directly affect Korean mobile phone users’ SMS adoption. We also find that network factor (NET), interface convenience (IC), and context controllability (CC) have significant indirect impacts on consumer adoption of SMS through their respective paths on perceived usefulness (PU) and perceived ease of use (PEU). Our findings demonstrate that SMS must be perceived as enjoyable and pleasant, because consumers’ motivation to use enjoyable and pleasant services like SMS enhances their value perceptions of SMS such as perceived usefulness (PU) and perceived ease of use (PEU). The findings also suggest that more convenient and easier-to-use system interfaces, greater context controllability across various SMS usage contexts, and greater network externalities can facilitate SMS adoption in the future. © 2008 Wiley Periodicals, Inc. As a convenient, low-cost mobile communication service, short message service (SMS) is experiencing rapid growth these days. According to an IDC survey (Rondon, 2005), the most popular mobile application by far in Australia, Psychology & Marketing, Vol. 25(8): 769–786 (August 2008) Published online in Wiley InterScience (www.interscience.wiley.com) © 2008 Wiley Periodicals, Inc. DOI: 10.1002/mar.20238 769

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Hong Kong, Malaysia, Singapore, Korea, and Taiwan is SMS, with roughly 65% of all mobile phone users communicating via SMS. Often dubbed as “thumb race,” SMS is fast becoming a necessity for members of the younger generations, who are using SMS much more frequently than voice telephone service in an attempt to maintain their social relationships by exchanging messages over the mobile platform (Rheingold, 2003). In Korea, for example, as of June 2006, SMS usage among youngsters has surpassed mobile voice telephone usage for the first time since its launch in 1998 (Wu, 2006). The enormous popularity and rapid growth in the diffusion of SMS, however, have drawn much unexpected attention from both practitioners and academics because SMS has not been regarded as a major communication device until recently (Grinter & Eldridge, 2001). Originally devised as an instrument to utilize mobile service providers’ excess network infrastructure capacity, SMS allows users to transmit alphanumeric messages bounded by an upper limit in the number of characters per message (e.g., 160 characters in the U.S.). The input method of SMS is considered inconvenient due to the fact that the keypad layout of a normal mobile handset is incompatible with that of the ordinary PC’s QWERTY keyboard. According to modern communication theory (Daft & Lengel, 1986; Short, Williams, & Christie, 1976), this impoverished communication in terms of richness of message content and ease of message delivery could have inhibited the diffusion of SMS. Interestingly, however, it appears that SMS continues to grow despite the presence of richer and easier-to-use communication substitutes such as e-mail, instant messaging service, mobile voice telephone service, and other multimedia mobile data service applications. Our question then becomes, what factors can contribute to the rapid growth in SMS adoption despite its limitation in terms of communication function? We maintain that SMS must be perceived as an enjoyable and pleasant service to use in its own right, because consumers’ motivation to use an enjoyable and pleasant service like SMS enhances their value perceptions of SMS in terms of, for example, its perceived usefulness and perceived ease of use. For example, Kim (2006) finds that a majority of SMS users in Korea enjoy the very act of making short, frequent, yet unobtrusive contacts with their significant others, which in turn motivates them to use SMS. Also, we anticipate that more convenient and easier-to-navigate user interfaces, greater context controllability across various SMS usage contexts, and network externalities can facilitate continued adoption of SMS in the future. Of particular interest, we hypothesize that context controllability has contributed much to facilitation of SMS adoption in Korea. For example, SMS is regarded as a more polite, unobtrusive way to leave messages for or seek responses from the other communication parties, because both message senders and recipients have control over the decision whether it is appropriate in terms of time and place to send, read, or respond to SMS messages (Yan, 2003; Yan, Gong, & Thong, 2006). In the current research, we aim to investigate factors influencing consumer adoption of SMS in Korea and to explore their structural dependencies.

LITERATURE REVIEW Several theories have been successfully applied to the contexts of IT adoption behavior, including the theory of planned behavior (Ajzen, 1991), the diffusion of 770

KIM, PARK, AND OH Psychology & Marketing DOI: 10.1002/mar

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innovation (Rogers, 1995), the expectation-(dis)confirmation model (Bhattacherjee, 2001), and the technology acceptance model (Davis, 1989). Davis’s original technology acceptance model (TAM) posits perceived usefulness and perceived ease of use to be primary constructs affecting user acceptance; perceived enjoyment was added later as another important construct affecting user acceptance (Davis, Bagozzi, & Warshaw, 1992). The importance of perceived enjoyment has been emphasized by van der Heijden (2004), who maintains that perceived enjoyment dominates perceived usefulness in influencing the adoption behavior of hedonic information systems. Gentry and Calantone (2002) have also demonstrated that TAM outperforms the theory of planned behavior (TPB), because perceived enjoyment and usefulness can explain consumer attitudes in a variety of contexts, including a network economy. A number of studies based on TAM and the other theories have explored factors affecting consumer adoption of mobile data service (MDS). Hong and Tam (2006), for example, explore factors influencing the MDS adoption based on a variation of TAM. Their study indicates that in the case of MDS, the desire to be unique and users’ psychographics such as perceived enjoyment, perception of value for money, and gender have been found to be significant. Also, a recent study by Lin, Shih, and Sher (2007) has shown that integrating a consumer’s technology readiness into TAM can enhance the explanatory power of TAM in regard to consumer adoption of e-service systems. Hsu, Lu, and Hsu (2007) examine adoption factors for multimedia message service (MMS) using Rogers’ (1995) diffusion of innovation theory, highlighting the different adoption behaviors among potential adopters and users. Relatively little effort, however, has been directed toward investigating consumer adoption of SMS, although a few notable exceptions do exist. For example, Xu, Teo, and Wang (2002) enumerate key success factors in SMS adoption by examining the cases of Finland, Japan, and the U.S. They hypothesize that cooperation among industry players, low cost, more attention to special mobile user groups, and effective marketing and government support would facilitate SMS adoption. Along the same lines, Yan, Gong, and Thong (2006) find that socioeconomic factors such as level of economic development, cultural differences, political censorship, and different input languages can explain the differential patterns of SMS adoption in Hong Kong and China. Also, Wang and Hausman (2006) provide a conceptual framework that incorporates characteristics of SMS (e.g., relative advantage, compatibility, ease of use), user profiles, nature of the social system, and marketing environment in explaining consumer adoption of SMS. Also, Lai (2004) finds that service quality and perceived value can contribute to enhanced SMS user satisfaction. More recently, Turel, Serenko, and Bontis (2007) demonstrate that performance value, emotional value, value for money, and social value contribute to users’ perceived value of SMS, which in turn increases their behavioral intention to use SMS. Drawing on this literature, the current research seeks to develop a theoretical model of SMS adoption among Korean mobile phone users.

MODEL HYPOTHESES Following Davis’s (1989) technology acceptance model (TAM), we have chosen continued intention to use (CIU) as a dependent variable and perceived FACTORS INFLUENCING CONSUMER ADOPTION OF SHORT MESSAGE SERVICE Psychology & Marketing DOI: 10.1002/mar

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usefulness (PU), perceived ease of use (PEU), and perceived enjoyment (PENJ) as three major independent variables in the proposed structural model. In addition, perceived monetary value (PMV), network factor (NET), interface convenience (IC), context controllability (CC), and media richness (MR) are selected as additional independent variables. We detail each of these constructs in the following section (see the Appendix for survey instruments for each construct).

Continued Intention to Use (CIU) Most marketing and information systems research has used behavioral intention (BI) to measure technology acceptance or usage intention (Davis, 1989; Hong & Tam, 2006). Considering that SMS is not a new technology and has been widely accepted among our sample population, we use an individual’s intention to continuously use SMS as a proxy for his or her behavioral intention. We define continued intention to use SMS (CIU) as the degree to which an individual is willing to use SMS in the future and to recommend significant others such as friends to use SMS in the future.

Perceived Usefulness (PU) Considerable research in marketing and information systems has demonstrated that perceived usefulness (PU) has a direct positive impact on consumer intention to adopt new technologies (Davis, 1986; Hong & Tam, 2006; Hong, Tam, & Kim, 2006; van der Heijden, 2004). Defined as the extent to which an individual believes that a product or service would enhance his or her job performance (Davis, 1989), perceived usefulness (PU) has frequently been associated with instrumentality in achieving valued goals (Davis, Bagozzi, & Warshaw, 1989). Given that SMS provides functional or utilitarian benefits to users in search of effective communication alternatives that help users achieve personal goals, perceived usefulness (PU) is expected to increase a respondent’s continued intention to use SMS (CIU). H1:

Perceived usefulness (PU) will have a direct positive influence on a respondent’s continued intention to use SMS (CIU).

Perceived Ease of Use (PEU) Perceived ease of use (PEU) can be defined as the extent to which an individual believes that a product or service would be easy to understand and use (Davis, 1989). Davis, Bagozzi, and Warshaw (1989) demonstrate that perceived ease of use (PEU) enhances user acceptance (1) by indirectly affecting adoption intention through perceived usefulness and (2) by directly influencing adoption intention. Recently, van der Heijden (2004) reported that perceived ease of use (PEU) has both a direct and an indirect impact through perceived usefulness (PU) on a respondent’s intention to use hedonic information systems such as entertainment Web sites. However, the fact that technologies are free of mental and physical effort does not necessarily increase their usefulness. Novices, for example, find it difficult to use statistical packages, but they perceive those software packages as useful tools for sophisticated statistical analysis. In fact, in recent

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studies no such relationship between perceived ease of use (PEU) and perceived usefulness (PU) is hypothesized (e.g., Hong, Tam, & Kim, 2006; Hsu, Lu, & Hsu, 2007) or the relationship has been found to be insignificant (e.g., Hong & Tam, 2006). For these reasons, we only hypothesize that perceived ease of use (PEU) will increase a respondent’s continued intention to use SMS (CIU). H2:

Perceived ease of use (PEU) will have a direct positive influence on a respondent’s continued intention to use SMS (CIU).

Interface Convenience (IC) We define interface convenience (IC) as the extent to which an individual believes that SMS would provide easy and efficient ways of user–system interaction. In their study of mobile Internet service, for example, Chae et al. (2002) maintain that quality of user–system interface can enhance user satisfaction and loyalty. According to a recent mobile commerce report (Durlacher Research, 2000), every additional click required for gaining access to mobile Internet sites reduces the probability of a transaction by 50%. Considering an inconvenient input device and the tiny display of mobile handsets demand greater mental and physical effort on users (Kamba et al., 1996), we anticipate that a more convenient and easier-to-use system interface for the character input system and layout of a mobile handset would facilitate the diffusion of SMS. Thus, it is expected that interface convenience (IC) of SMS will enhance perceived usefulness (PU) and perceived ease of use (PEU) of SMS. H3a:

Interface convenience (IC) will have a direct positive influence on perceived usefulness (PU) of SMS.

H3b:

Interface convenience (IC) will have a direct positive influence on perceived ease of use (PEU) of SMS.

Context Controllability (CC) When it comes to using SMS, it is anticipated that contextual appropriateness would play an important role, because both senders and recipients of messages have self-control over their decision regarding whether it is appropriate in terms of time and place to send, read, or respond to SMS messages (e.g., Yan, 2003). Also, SMS is often regarded as a more polite, unobtrusive way to leave messages for or seek responses from the other communication parties under some circumstances (e.g., Yan, Gong, & Thong, 2006). Given that providing information at the right time at the right place is crucial for mobile device users (Dey, 2001), SMS provides one of the least obtrusive solutions to users who want immediate, unrestricted access to information without disturbing or embarrassing others or themselves. Thus, we anticipate that context controllability (CC) will increase perceived usefulness (PU) and perceived ease of use (PEU) of SMS. H4a:

Context controllability (CC) will have a direct positive influence on perceived usefulness (PU) of SMS.

FACTORS INFLUENCING CONSUMER ADOPTION OF SHORT MESSAGE SERVICE Psychology & Marketing DOI: 10.1002/mar

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Context controllability (CC) will have a direct positive influence on perceived ease of use (PEU) of SMS.

Perceived Monetary Value (PMV) Usually, an individual purchases a product or service when he or she expects more benefits (e.g., product quality or feature) than costs (e.g., price), indicating that for an exchange to occur, perceived monetary value (PMV) needs to be positivethat is, that perceived benefits exceed perceived costs (Monroe & Krishnan, 1985). SMS costs as much as 15 cents per message, which is much cheaper than the cost of substitute services such as MDS, while delivering a satisfactory solution to users’ need for making short, frequent, close, yet unobtrusive contacts with their significant others as well as the alternative communication services do. In this regard, SMS usage price is likely to play an important role in users’ adoption of SMS. Previous research has shown that perceived monetary value (PMV) increases an individual’s intention to adopt a product or service (Cronin, Brady, & Hult, 2000; Dodds, Monroe, & Grewal, 1991; Zeithaml, 1988). That is, the greater the perceived monetary value (PMV) a user associates with the use of SMS, the more likely he or she shall adopt it. We thus expect that perceived monetary value (PMV) will increase perceived usefulness (PU) of SMS and enhance a respondent’s continued intention to use SMS (CIU). H5a:

Perceived monetary value (PMV) will have a direct positive influence on perceived usefulness (PU) of SMS.

H5b:

Perceived monetary value (PMV) will have a direct positive influence on a respondent’s continued intention to use SMS (CIU).

Perceived Enjoyment (PENJ) Perceived enjoyment (PENJ) can be defined as the extent to which an individual believes that the activity of using a product or service is perceived as enjoyable in its own right, apart from any performance consequences that may be anticipated (Davis, Bagozzi, & Warshaw, 1992). Several recent studies report that perceived enjoyment (PENJ) plays a crucial role in explaining consumer adoption of new technologies such as SMS or mobile data service (Davis, Bagozzi, & Warshaw, 1992; Hong & Tam, 2006; Hong, Tam, & Kim, 2006; Turel, Serenko, & Bontis, 2007). For example, Hong and Tam (2006) demonstrate that perceived enjoyment (PENJ) has a direct positive impact on a respondent’s behavioral intention to use mobile data service while increasing both perceived usefulness (PU) and perceived ease of use (PEU). In a related vein, Turel, Serenko, and Bontis (2007) show that emotional values such as enjoyment and pleasure of using SMS can increase perceived value, which in turn increases behavioral intention to use SMS. Common sense, however, would predict that perceived ease of use (PEU) and perceived usefulness (PU) can also increase perceived enjoyment (PENJ). We admit that technologies that are useful and easy to use (e.g., digital camera, MP3 player) can indeed provide pleasant experiences to users, and thus increase adoption intention (e.g., van der Heijden, 2004). However, this may not always be the case. For example, although wired voice telephony is much easier to use 774


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and provides more useful benefits than SMS for communication purpose, people find it difficult to call it an enjoyable, pleasant technology. In contrast, a majority of SMS users in Korea are enjoying the very act of making short, frequent, yet unobtrusive contacts with significant others (Kim, 2006), which in turn motivates them to use SMS. Given that an individual’s cognition, affect, and behavior are guided by his or her motivation to approach pleasure and avoid pain (Higgins, 1997), the value perceptions of SMS, including its perceived usefulness (PU) and perceived ease of use (PEU), can be affected by users’ motivation to use an enjoyable and pleasant service like SMS (e.g., Turel, Serenko, & Bontis, 2007). We thus hypothesize that perceived enjoyment (PENJ) will enhance both perceived usefulness (PU) and perceived ease of use (PEU) of SMS, and will increase a respondent’s continued intention to use SMS (CIU). H6a:

Perceived enjoyment (PENJ) will have a direct positive influence on perceived usefulness (PU) of SMS.

H6b:

Perceived enjoyment (PENJ) will have a direct positive influence on perceived ease of use (PEU) of SMS.

H6c:

Perceived enjoyment (PENJ) will have a direct positive influence on a respondent’s continued intention to use SMS (CIU).

Network Factor (NET) Network externalities exist when an individual’s demand for a product or service depends on the consumption of others. For example, positive demand externalities exist when the value for each participant of participating in a network increases as the number of participants increases (Riggins, Kriebel, & Mukhopadhyay, 1994). Markus (1990) describes this group of users to be within the same network community, whereas Rice (1990) calls them a relevant critical mass. In the current research, network factor (NET) designates consumer perception of the usefulness of a network, which embraces the concept of network externality (Riggins, Kriebel, & Mukhopadhyay, 1994) and that of critical mass (Rice, 1990). We hypothesize that network factor (NET) will improve a respondent’s perception of perceived usefulness (PU) of SMS and thus enhance his or her intention to use SMS (CIU). H7a:

Network factor (NET) will have a direct positive influence on perceived usefulness (PU) of SMS.

H7b:

Network factor (NET) will have a direct positive influence on a respondent’s continued intention to use SMS (CIU).

Media Richness (MR) Daft and Lengel (1986) postulate that it is much easier to create shared meaning among communication parties when the communication media used are richer. According to this media richness theory, each medium of communication can be positioned along the rich–lean continuum, where face-to-face communication is


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considered the richest and computer-mediated communication the leanest media. From this standpoint, media richness would be expected to inhibit the diffusion of SMS, because its character limit results in brevity of information. Dennis and Kinney (1998) and Walther and Burgoon (1992), however, demonstrate that, although computer-mediated media have been regarded as an environment with low social presence, they have been successfully adopted in both personal and business environments. Brevity of information, often regarded as a problem for SMS adoption, however, is cited as one of the most desirable communication features in the context of SMS usage, because brevity in fact helps users hide unnecessary audiovisual cues and information (Grinter & Eldridge, 2001). That is, perceived richness of communication media is determined by particular functions that communication media perform. Based on these observations, we include media richness (MR) as a possible construct to influence consumers’ continued intention to use SMS (CIU). H8:

Media richness (MR) will have a direct positive influence on a respondent’s continued intention to use SMS (CIU).

METHOD Sample and Procedures The proposed SMS adoption model was empirically tested using survey data from a convenient sample consisting of junior high and high school students (53%), undergraduates and graduates (26%), and office workers (21%), all of whom own a mobile phone and use SMS service in Korea. Of 200 South Korean respondents personally contacted, 195 accepted and completed survey packets which included five pages of questions with regard to SMS adoption. As Table 1 summarizes, 47% of survey respondents were males; their mean age was 21.3. Survey respondents were sending (receiving) an average of 37 (39) SMS messages per day. Forty-nine percent of survey respondents subscribed to a special SMS package that allowed them to send and receive an infinite number of SMS messages at a fixed monthly rate (see Table 1 for additional profiles of the sample). However, we acknowledge that our survey respondents could not represent all SMS users in Korea because more than half of respondents recruited were teenagers. Moreover, it is also admitted that findings from this research would be limited due to possible cultural differences between Korean and the other countries’ respondents.

Survey Questionnaire As the Appendix summarizes, a total of 21 items, all of which were adapted from previous research on consumer adoption of IT and mobile data services, were modified, as the focus of the current research was on SMS adoption. As the questionnaire was administered in Korean, the translation–back translation procedure was employed, in which two bilingual (English-Korean) research assistants translated the original English questions used in various prior studies into Korean to maintain translation equivalence. The survey questionnaire consisted of four major parts. First, consumer perceptions of SMS including monetary

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Table 1. Descriptive Statistics of Korea SMS Users. Profile of Survey Respondents (n 195)

(%)

Gender Male Female

47 53

Age (M 21.3 years) 20 20–29 30–39 40–49 50

52.31 34.36 9.23 3.59 0.51

Number of SMS Messages Sent per Day 5 5–10 11–30 31–50 51–100 101–500 500

25.13 11.79 14.36 22.56 12.82 11.28 2.05

Number of SMS Messages Received per Day 5 5–10 11–30 31–50 51–100 101–500 500

18.97 17.95 13.85 21.03 13.85 10.77 3.59

SMS Service Package Subscribers Yes No

49.23 50.77

Occupation Office worker Graduate Undergrad Junior high/high school student

21.03 9.23 16.41 53.33

Highest Education Level Completed Junior high/high school Bachelor’s degree Master’s degree

52.82 30.26 16.92

value, usefulness, ease of use, enjoyment, interface quality, context controllability, media richness, and network factor were measured on a 7-point Likert scale (1 strongly disagree, 7 strongly agree). Second, participants were asked to indicate how much they intended to continuously use SMS in the future and would recommend their friends to use SMS in the future. Third, participants were asked about their current SMS usage patterns, including usage frequency, subscribed pricing plan, and monthly mobile phone service expenditure. Last, participants were asked about their demographics and thanked.


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Table 2. Statistics of Construct Items. Construct Perceived Monetary Value (PMV)

Measurement PMV1

Alpha 0.77

PMV2 Network Factor (NET)

NET1

0.84

NET2 NET3 Interface Convenience (IC)

IC1

0.85

IC2 IC3 Context Controllability (CC)

CC1

0.83

CC2 Media Richness (MR)

MR1

0.74

MR2 Perceived Enjoyment (PENJ)

PENJ1

0.86

PENJ2 Perceived Usefulness (PU)

PU1

0.77

PU2 Perceived Ease of Use (PEU)

PEU1

0.91

PEU2 Continued Intention to Use (CIU)

CIU1

0.79

CIU2

Mean (SD)

Factor Loading

3.28 (1.51) 3.80 (1.51)

0.64

3.45 (1.63) 4.06 (1.76) 4.20 (1.66) 4.27 (1.38) 4.71 (1.44) 4.75 (1.35) 5.38 (1.34) 5.17 (1.51) 4.32 (1.40) 4.51 (1.45) 5.26 (1.35) 5.10 (1.52) 3.91 (1.68) 4.45 (1.50) 5.85 (1.18) 5.90 (1.17) 5.76 (1.16) 4.94 (1.41)

0.95 0.75 0.91 0.74 0.70 0.90 0.83 0.95 0.83 0.82 0.62 0.93 0.91 0.70 0.81 0.94 0.96 0.71 0.84

Scale Reliability and Discriminant Validity Coefficient alpha estimates of internal consistency reliability for each proposed dimension were calculated. As Table 2 indicates, all coefficient alpha estimates were greater than 0.74, which were considered as being within the permissible range (Nunnally & Bernstein, 1994). Confirmatory factor analysis was conducted 778


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Table 3. Average Variances Extracted (AVEs) and Correlations.

CIU MR IC CC PENJ PMV NET PU PEU

CIU

MR

IC

CC

PENJ

PMV

NET

PU

PEU

0.66 0.30 0.37 0.43 0.45 0.40 0.30 0.59 0.41

0.77 0.41 0.34 0.24 0.27 0.16 0.33 0.19

0.74 0.51 0.39 0.22 0.26 0.46 0.36

0.79 0.29 0.29 0.08 0.32 0.40

0.69 0.17 0.29 0.50 0.38

0.71 0.06 0.28 0.22

0.75 0.45 0.12

0.69 0.38

0.86

Notes: CIU (continued intention to use); PMV (perceived monetary value); NET (network factor); MR (media richness); PENJ (perceived enjoyment); PU (perceived usefulness); PEU (perceived ease of use); IC (interface convenience); CC (context controllability). Numbers are correlations; those in bold indicate average variances extracted (AVEs). All correlations are significant at p 0.01.

Table 4. Fit Indices for the Measurement and the Structural Models. Fit Indices Chi-sq.(d.f) Chi-sq./d.f Goodness-of-fit index (GFI) Adjusted GFI (AGFI) Normalized fit index (NFI) Comparative fit index (CFI) Root Mean Square Residual (RMSR) Root Mean Square Error of Approximation (RMSEA)

Thresholds — — 0.90 0.90 0.90 0.90 0.10 0.08

Measurement Model

Structural Model

202.93 (134) 1.51 0.91 0.85 0.91 0.97 0.09

209.03 (141) 1.48 0.91 0.86 0.91 0.97 0.09

0.05

0.05

using AMOS 4.0 to examine the psychometric properties of the constructs and items. All factor loadings were greater than 0.62, demonstrating convergent validity (Nunnally & Bernstein, 1994). To ensure discriminant validity, the correlations between the constructs were compared with the average variances extracted (AVEs) from the individual constructs (Fornell & Larcker, 1981). As Table 3 shows, all the correlations were lower than the AVEs, indicating adequate discriminant validity. Table 4 summarizes the fit of the measurement and the structural model which was estimated with a commonly used set of fit indices including normalized chi-square (Chi-sq), goodness-of-fit index (GFI), adjusted goodness-of-fit index (AGFI), normalized fit index (NFI), comparative fit index (CFI), root mean square residual (RMSR), and root mean square error of approximation (RMSEA). For the estimation of the proposed structural model, maximum likelihood (ML) was used. The analysis revealed that most fit indices of the measurement model except AGFI were within the recommended level (Baumgartner & Homburg, 1996), representing an acceptable model fit. Also, the RMSR and the RMSEA were within the recommended cutoff values of 0.10 and 0.08 (Hair et al., 1988). FACTORS INFLUENCING CONSUMER ADOPTION OF SHORT MESSAGE SERVICE Psychology & Marketing DOI: 10.1002/mar

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RESULTS A structural equation analysis was performed using AMOS 4.0 to test the proposed model for SMS adoption. The structural equation modeling approach was adopted in order to effectively examine multiple and interrelated causal relationships among various factors affecting consumer adoption of SMS. As summarized in Table 4, a commonly used set of fit indices which included chi-square (Chi-sq), goodness-of-fit index (GFI), adjusted goodness-of-fit index (AGFI), normalized fit index (NFI), comparative fit index (CFI), root mean square residual (RMSR), and root mean square error of approximation (RMSEA) was used to examine the fit of the proposed structural model as shown in Figure 1. Again, most fit indices except AFGI indicated that the proposed model provided an acceptable fit to the data (Baumgartner & Homburg, 1996; Hair et al., 1988).

Hypothesis Testing As Table 5 indicates, most of the hypothesized relationships among variables used in our proposed structural model were supported. First, we found that network factor (NET) increased perceived usefulness (PU) of SMS. The findings indicated that network factor (NET) had an indirect effect on a respondent’s continued intention to use SMS (CIU) through its impact on perceived usefulness (PU) (b 0.32, p 0.001), resulting in the combined effect of 0.067 ( 0.32 0.21). Second, our analysis showed that context controllability (CC) had an indirect

1

PMV1

2

PMV2

3

NET1

4

NET2

5

NET3

6

IC1

7

IC2

8

IC3

9

CC1

10

CC2

11

MR1

12

MR2

19 .30***

Perceived monetary value 17 .25**

29 N/S

Network factor

5

6

PU1

PU2

R-sq .50 Perceived usefulness

27 .32***

79 .21*

37 .34** 47 N/S

Interface convenience 1

PNJ1

2

PNJ2

Context controllability

67 .21*

Perceived enjoyment

38 .20*

5

6

CIU1

CIU2

6

69 .32**

68 .25** 89 .15*

2

48 .19*

R-sq .61 Continued intention to use

3

R-sq .26 Media richness

Perceived ease of use 59 N/S PU1

PU2

3

4

*** p 0.001, ** p 0.01, * p 0.05.

Figure 1. The proposed structural model.

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Table 5. Summary of the Estimated Path Coefficients. Variables CIU PMV NET MR PENJ PU PEU PU PMV NET IC CC PENJ PEU IC CC PENJ

Path

R2

Beta

Hypothesis

0.30*** 0.12 0.11 0.32*** 0.21* 0.15**

Accepted (H5b) Rejected (H7b) Rejected (H8) Accepted (H6c) Accepted (H1) Accepted (H2)

0.25** 0.32*** 0.34** 0.09 0.21*

Accepted (H5a) Accepted (H7a) Accepted (H3a) Rejected (H4a) Accepted (H6a)

0.20* 0.19* 0.25***

Accepted (H3b) Accepted (H4b) Accepted (H6b)

0.61 g19 g29 g59 g69 g79 g89 0.50 g17 g27 g37 g47 g67 0.26 g38 g48 g68

Notes: CIU (continued intention to use); PMV (perceived monetary value); NET (network factor); MR (media richness); PENJ (perceived enjoyment); PU (perceived usefulness); PEU (perceived ease of use); IC (interface convenience); CC (context controllability). *** p 0.001, * p 0.05, ** p 0.01.

impact of 0.029 ( 0.19 0.15) on a respondent’s continued intention to use SMS (CIU) through its impact on perceived ease of use (PEU) (b 0.19, p 0.05). Context controllability (CC), however, did not affect perceived usefulness (b 0.09, NS). Third, we found that interface convenience (IC) enhanced both perceived usefulness (PU) and perceived ease of use (PEU). Our analysis indicated that interface convenience (IC) had a significant indirect effect of 0.101 ( 0.34 0.21 0.20 0.15) on a respondent’s continued intention to use SMS (CIU) through its impact on perceived usefulness (PU) (b 0.34, p 0.01) and perceived ease of use (PEU) (b 0.20, p 0.05). Last, our analysis demonstrated that perceived enjoyment (PENJ) (b 0.32, p 0.001), perceived monetary value (PMV) (b 0.30, p 0.001), perceived usefulness (PU) (b 0.21, p 0.05), and perceived ease of use (PEU) (b 0.15, p 0.05) increased a respondent’s continued intention to use SMS (CIU). Most importantly, perceived enjoyment (PENJ) had a combined impact of 0.402 ( 0.32 0.21 0.21 0.25 0.15) on a respondent’s continued intention to use SMS (CIU) through its direct impact (b 0.32, p 0.001) and indirect impacts on perceived usefulness (PU) (b 0.21, p 0.05) and perceived ease of use (PEU) (b 0.25, p 0.001), suggesting that a respondent’s motivation to use an enjoyable and pleasant service like SMS had a significant impact on his or her value perception of SMS such as its perceived usefulness (PU) and perceived ease of use (PEU) (e.g., Turel, Serenko, & Bontis, 2007). Overall, the proposed structural model explained 61% of the variance in a respondent’s continued intention to use SMS (CIU), 50% of the variance in perceived usefulness (PU), and 26% of the variance in perceived ease of use (PEU).


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Unfortunately, the effect of media richness (MR) (b 0.11, p 0.18) and network factor (NET) (b 0.12, p 0.15) on a respondent’s continued intention to use SMS (CIU) did not reach conventional significance levels. It appeared that our respondents did not associate the richness of media with SMS due to the impoverished communication function of SMS. On the other hand, network externalities seemed to facilitate SMS adoption only its indirect path through perceived usefulness (PU).

SUMMARY AND DISCUSSION As a convenient, low-cost mobile communication service, short message service (SMS) is experiencing rapid growth in the presence of richer and easier-touse communication substitutes such as e-mail, instant messaging service, mobile voice telephone service, and other multimedia mobile data service applications. The current research aims to explain why SMS continues to grow even further in spite of its impoverished communication in terms of richness of message content and ease of message delivery compared to the alternative communication media. First, in agreement with previous research (Davis, 1989; Davis, Bagozzi, & Warshaw, 1992; Hong & Tam, 2006; Hong, Tam, & Kim, 2006; Turel, Serenko, & Bontis, 2007), our structural model suggests that perceived enjoyment (PENJ), perceived monetary value (PMV), perceived usefulness (PU), and perceived ease of use (PEU) are four major factors that facilitate SMS adoption among Korean users. Of particular interest, the findings indicate that perceived enjoyment (PENJ) increases perceived usefulness (PU) and perceived ease of use (PEU) of SMS. That is, a majority of SMS users in Korea are motivated to use SMS because they find the very act of exchanging short, restricted, yet frequent SMS messages with their significant others to be enjoyable and pleasant (Kim, 2006). And for this enjoyable communication purpose, SMS offers more value for the money compared to other communication alternatives. Second, our structural model shows that network factor (NET) and interface convenience (IC) increase perceived usefulness (PU), whereas context controllability (CC) and interface convenience (IC) enhance perceived ease of use (PU) when it comes to using SMS. That is, user-friendly system interface and the capability of controlling appropriate contexts in which SMS messages are more necessary than other forms of communication make it an easy-to-use communication medium that can satisfy SMS users’ needs for communication. Also, SMS users find it increasingly useful as mobile handsets offer easier-to-use system interfaces and a greater number of peers are using SMS. From a managerial standpoint, the current research offers valuable insights about facilitating consumer adoption of SMS in under-penetrated markets. First, SMS must be perceived as an enjoyable and pleasant service to use in its own right, because consumers’ motivation to use an enjoyable and pleasant service like SMS enhances their value perception of SMS in such areas as its perceived usefulness (PU) and perceived ease of use (PEU). Second, mobile handsets with standard QWERTY keypads (e.g., Palm Treo 700p smart phone) and user-friendly SMS system interfaces (e.g., fewer clicks required for access to SMS) are more likely to increase consumer adoption of SMS.

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Our research also contributes to the technology acceptance literature in that it reemphasizes the role of perceived enjoyment and its impact on perceived ease of use and perceived usefulness. Consistent with previous research (Davis, Bagozzi, & Warshaw, 1992; Hong & Tam, 2006; Hong, Tam, & Kim, 2006; Turel, Serenko, & Bontis, 2007), the current research provides further support for the idea that perceived enjoyment can increase both perceived usefulness and perceived ease of use when it comes to adopting new technologies. That is, consumers’ motivation to use enjoyable and pleasant services like SMS can guide their perception of ease of use and usefulness. This research provides a partial explanation as to why a seemingly impoverished and inferior service like SMS has been adopted more than other, superior communication alternatives. However, further research seems warranted because the proposed causal path between perceived enjoyment and perceived ease of use and usefulness can also be reversed (e.g., van der Heijden, 2004) depending on what kinds of consumer motivations are brought into the service encounter.

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APPENDIX List of Constructs and Items Used in the Proposed Structural Model Construct

Items

NET

NET1 NET2 NET3

MR

MR1 MR2

IC

IC1 IC2 IC3

CC

CC1

CC2

Survey Instruments I use SMS because I want to use the same media people around me use. I use SMS because people around me use SMS in common. Usage of people around me influences my usage intention.

Adapted From Benbasat & Moore (1991)

When I use SMS, I can get immediate Carlson & responses from the message recipients. Zmud (1999) When I use SMS, I can communicate and exchange a variety of information. When I use SMS, I can easily recognize Chae et al. (2002) where the needy information is located. When I use SMS, I can easily recognize where I navigate. I think that the screen design of SMS is harmonious. I have control over my decision regarding whether it is appropriate time to use SMS. I have control over my decision regarding whether it is appropriate place to use SMS.

PENJ

PENJ1 PENJ2 PENJ3

I think that using SMS is interesting. I think that using SMS is fun. I think that SMS has many factors that make me concentrate on using the service.

Davis, Bagozzi, & Warshaw (1992); Koufaris (2002)

PMV

PMV1 PMV2

I think that SMS is reasonably priced. I think that SMS service fee is reasonable.

Dodds, Monroe, & Grewal (1991)

CIU

CIU1 CIU2

Davis (1989)

PU

PU1

I intend to use SMS in the future. I intend to recommend my friends to use SMS in the future. Using SMS increases my chances of achieving things that are important to me. Using SMS helps me accomplish things more quickly. I think learning how to use SMS is easy for me. I find SMS to be easy to use.

PU2 PEU

PEU1 PEU2

Davis (1989); Hong & Tam (2006)

Davis (1989)

Notes: CIU (continued intention to use); PMV (perceived monetary value); NET (network factor); MR (media richness); PENJ (perceived enjoyment); PU (perceived usefulness); PEU (perceived ease of use); IC (interface convenience); CC (context controllability).

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