Reactions to Digital Signage Based on the Need for Cognition: Focus on

Transcription

1 Jae Young Kim, Hee Rang Park Reactions to Digital Signage Based on the Need for Cognition: Focus on the Technology Acceptance Model ¹Jae Young, Kim, ²Hee Rang, Park 1 Dept. of Advertising & Public Relations, Namseoul University, bluek@nsu.ac.kr 2 Dept. of Psychology, Jeonbuk National University, phr62@korea.kr Abstract This study examines the differences between advertising effects and the acceptance of new technology based on the audience (experts versus the general public) and its need for cognition (high versus low). Experts showed higher acceptance levels for digital signage than the general public with regard to trustworthiness. People involved in the digital signage industry were mostly interested in the sales generated by a given advertisement. None expressed interest in promoting the value, range of applicability, or existence of digital signage. This is because there was no significant difference in this group s level of need for cognition. Neither experts nor the general public could estimate the investment costs for hardware and software or the effects of the investment. Without fully considering effects in relation to cost, both experts and the general public more actively accepted products, services, and ideas created by the novelty of the new media. Digital signage was just seen as new media regardless of the consumer s need for cognition. The general public might not give full credit to digital signage because it does not present attributes that distinguish it from existing media. Therefore, digital signage as advertising media needs to provide more realistic and genuine information than traditional media for the general public to increase its level of acceptance. 1. Introduction Keywords: Digital Signage, TAM, Need for Cognition Digital technology has caused revolutionary changes in society. It has shaken the existing order of the world across cultures, economies, and politics. Namely, it has altered not just the functions of media and technology but the modes of representation, acceptance, and sociocultural change in society [24] [29]. In this period of transition for media paradigms, the current study sheds new light on outdoor media. An emerging outdoor medium is digital signage, which can control messages in real time with digital technology. The trend of digital signage has accelerated both quantitatively and qualitatively. In addition, it has induced active consumer engagement through media convergence and interactive embodiment, inaugurating a new media era by utilizing interactive marketing communication tools. Digital signage consists of screen displays located in public spaces showing video material. Content typically includes advertisements, community information, entertainment, and news. TV screens have been used in retail environments for some time, but since the advent of digital control and flat screens, the use of networks of screens has made digital signage available as an effective, easily controlled communication medium [9]. A good example is smart signage, which combines digital signage with smartphone technology. As advertising experts already know, the smartphone has invigorated personal media in the digital era. Consumers in the digital era consume preferred media formats, as opposed to push media models, due to the development of personal media and digital technology. Marketers have sought new advertising strategies to target personal media (smartphones), which offer mutual benefits to both marketers and consumers. According to Yang (2010), digital signage has gained attention due to the decreased effectiveness of traditional media, which has stemmed from an increase in external consumer activities, changes in life patterns, an increased need to deliver messages in point-of-purchase communication, and a readiness for creative transformation. Reflecting these trends, digital signage has emerged as an International Journal of Digital Content Technology and its Applications(JDCTA) Volume7, Number15, November

2 Jae Young Kim, Hee Rang Park outdoor advertising medium, transforming the future of the outdoor advertising market [30]. To ensure the success of digital signage media businesses, it is essential that researchers develop a system to measure the medium s effect in drawing attention to the advertiser. Such a system should appeal to the advertiser, produce accurate consumer data in the stores, and analyze the rate of sales growth. Does personality moderate the processing of persuasive messages used in advertising? Comparatively little attention has been paid to individual differences variables in consumer research [4]. One personality variable that as received increased attention is need for cognition, which has been a focal interest of researchers interested in cognitive elaboration, particularly within the framework of Petty and Cacioppo s(1982) elaboration likelihood model(elm). In this study, need for cognition was examined as a potential explanatory variable for understanding the cognitive processing of persuasive messages presented as digital signage advertising [6]. This study, therefore, proposes a development-oriented utilization of digital signage by comparing the effects of digital signage to the audience s (experts versus the general public) need for cognition. A technology acceptance model (TAM) was used to conduct the analysis. 2. Background and Hypothesis 2.1. Need-for Cognition and Consumer Information Search on Digital Signage The consumer s need for cognition(nfc) plays a similar role as a motivational factor for engagement in the information processing of mass media advertising. However, few studies have considered digital signage and the role it plays in information processing. Since 1980, consumer research has paid more attention to how cognitive personality factors influence consumer behavior. The need for cognition is a key area of research on consumer cognitive personality factors; it basically concerns consumers motivational factors. According to Cacioppo and Petty (1982), those with high scores on the scale of the need for cognition like to think while those with low scores tend to avoid difficult cognitive activities. Those with a lower need for cognition are characterized as being unable to discern a main idea from a specific assertion and typically avoid cognitive efforts to form attitudes based on given assertions [6]. Cacioppo and Petty (1982) classified NFC as a motivational factor, based on individual differences, within the larger framework of elaboration likelihood model. The elaboration likelihood model posits that individuals will devote varying levels of effort to cognitive processing tasks based upon their motivation (such as involvement or NFC) or ability (such as knowledge) [23]. Further, high NFC individuals are also more likely to favor information-orientated media, and a verbal over a visual processing style [14]. Owing to the internet s capacity to provide information, it may be of particular appeal to high NFC individuals who are likely to be more interested in the quality of the verbal information presented, than in execution characteristics like graphics or sound effects [8]. Conversely, low NFC individuals may be more prone to the influence of symbolic cues in web sites given that they will avoid elaborative processing. Hence, low NFC individuals may base their attitudes not on the actual informational content of the site, but on the attractiveness of the execution characteristics [21]. Individuals with high motivation or ability are willing to override natural miserly tendencies among humans and will process information effortlessly using central route processing. By contrast, individuals with lo motivation or ability will default to a peripheral route form of processing in which they are content to rely upon various peripheral cues (such as source credibility) to make summary assessments without through examination of arguments [14]. NFC stems from the elaboration likelihood model that specifies conditions in which persuasion will be mediated by the amount of message relevance to the thought that an individual undertakes [17]. In the case of blogs, individuals who tend to be engaged in information search are likely to be actively involved in the search amongst numerous information sources available online, and therefore, they may process product information in blogs through the central route rather than the peripheral route. However, this tendency mat vary by individuals, and NFC may be one possible explanation for the variance [22]. Essentially, NFC identifies differences among individuals in their likelihood of engaging in and enjoying thinking [22]. Lord and Putrevu (2006) identify five factors in this construct -- enjoyment of cognitive stimulation, confidence in cognitive ability, preference for complexity, 43

3 Jae Young Kim, Hee Rang Park commitment of cognitive effort, desire for understanding, and trust in the consequence of cognition and suggest that researchers can select the dimensions that are relevant to their research objectives to measure NFC, if not using all of the factors [21]. NFC is also believed to predict one s preference for information types. Generally, a high NFC individual is supposed to prefer information-oriented media and tends to be more engaged in verbal over visual information processing [22] Digital Signage Recently, the trend in digital signage has been toward eco-friendly, high-utility media. This trend has helped vitalize the outdoor advertising media industry. Digital signage continues to evolve in different ways, including the introduction of new technology and the development of advertising content suitable for digital signage [18]. Because the range of its application is unlimited, digital signage can be used in hotels, stations, airports, financial institutions, hospitals, apartments, conventional markets, big discount stores, specialized stores, and elevators. Digital signage is used to provide both public information and advertising [19]. Digital signage content may include, for example, advertisements, community information entertainment, and news. Such screen networks go by many names, but we use the terminology digital signage here as being most commonly used internationally [10]. It does not simply deliver information about products, services, and ideas, but increases the value of regions by changing the city view and harmoniously juxtaposing it with urban environments. The weight of digital signage has gradually increased, growing faster than any other traditional media. Specifically, digital signage has been a driving force in propelling the growth of the outdoor advertising industry. Referring to digital billboards, the Outdoor Advertising Association of America describes them as updated electronically through a variety of methods. Some are networked together, most are operated remotely, and all of them can be updated quickly, sometimes with just the click of a mouse. This ability gives digital signage flexibility and nimbleness. This nimbleness gives local businesses a unique and powerful way to reach a large number of geographically targeted consumers very quickly[10][25]. As a relative newcomer to the environment, digital signage networks are now found in the marketing toolbox. Digital signage networks are used in many retail contexts, including main-street shopping areas, malls, and individual stores. Most commonly, they consist of flat LCD or plasma screens with content linked digitally. They are used for many purposes, including advertising, provision of news d community information, and enhancement of image. In the outdoor arena, screens can be very large, matching the largest conventional billboards. In most retail applications, size is more modest, often less than 2 meters, although some can be much larger digital billboards. Shopping malls use digital signage particularly to generate advertising revenue and to improve customer satisfaction and image [10][11]. Although there are a variety of options for communicating with shoppers at the point of purchase, this article focuses on digital signage. Digital signs are large (greater than 30 inches diagonally) flat panel monitors that show a continuous loop of advertising and editorial material. The signs often are positioned throughout the store and are controlled by a centralized computer server. The signs are ideal for marketing experiments because their content can be manipulated in real time, and shopper behavior can be measured using point-of-sale scanners and/or video cameras [6] Technology Acceptance Model The basic technology acceptance model (TAM) describes a nomological system of variables in which user behavioral intentions to use a technology are mediated both by its perceived usefulness and perceived ease of use. The variables measure the extent to which utility and usability influence technology acceptance, with utility referring to the user s evaluation of the usefulness of the technology as distinct from usability, referring to he user s evaluation of the ease of applying the technology to a specific task. The classic TAM [32], which shows the interplay between perceived ease of use, perceived usefulness, and behavioral intentions. Later research supports the consistency of perceived usefulness in explaining behavioral intentions and the robust perceived usefulness/behavioral intentions relationship[13] [28] [32]. The TAM integrates perceived usefulness, perceived ease of use, attitude toward the action, 44

4 intention and actual use as the original variables of the model with the external variables. It provides an informative representation of the mechanisms by which design choices influence user acceptance, and should therefore be helpful in applied contexts for forecasting and evaluating user acceptance of information technology [2]. In contrast, the influence of perceived ease of use has been inconsistent across studies [32] on three grounds: first, it has often been found to have a minimal effect on behavioral intentions; second, it inversely varies in influence based on the users degree of experience with the technology; and third, it only influences behavioral intentions when mediated by perceived usefulness. Notwithstanding inconsistent findings about the importance of perceived ease of use, the basic TAM s main relationships have been supported across technologies in which the logical premise is that enabling users to do something useful is more important than ensuring that it is easy to use [28]. The TAM is used to explain the acceptance behaviors of consumers. It was first introduced by Davis in fields related to information technology and management information systems [9]. Follow-up studies have been conducted by other scholars, and over the last 20 years, the TAM has evolved. Based on the theory of reasoned action, the TAM uses the concepts of perceived utility (PU) and perceived ease of use (PE) to explain a user s intention to use an information system [1]. TAM studies have consistently shown the validity of this model in relation to traditional information systems. Venkatesh (2000) examined the relationship between the TAM and external variables related to the social-influence process (e.g., job fitness, output quality, result rehearsal). Venkatesh described this as an extended TAM or TAM2 [29] [31]. The TAM s predictive value led to refinements [33] in business contexts that reengineered the original as a broadly comprehensive model by adding numerous explanatory antecedents, mostly related to business use. Among the antecedents are specific system characteristics; enjoyment of system use; subjective usage norms; degree of user experience; perceived self-efficacy; type of technology and intended use; system training and competence; social influence; user experience levels; job relevance; and even age and gender. A recent augmentation has also introduced a unified model relevant to business processes to explain user perceptions and attitudes by drawing from diffusion theory, motivation theory, and self-efficacy in order to explain usage intentions in technologies such as software for database management and financial analysis [28]. New studies continue to discover highly influential factors in the acceptance of advanced technology by using high information technology. Such studies extend into factors that mobilize individual actions in socio-psychological terms and apply them to the process of information technology acceptance [16]. Many studies have examined technology acceptance with regard to mobile phones and smartphones. However, few studies have applied the TAM to new forms of digital signage. Existing studies do not examine the TAM but rather analyze reactions to individual factors that constitute the TAM in accordance with consumer characteristics. In a study of the variables that influence PU and PE as key variables in the TAM, Venkatesh (2000) found that control, intrinsic motivation, and affective factors can be external variables. Intrinsic motivation is the perception of pleasure and satisfaction gained from performing the action [31]. As an external stimulus, intrinsic motivation is the interest in using an information system in a given environment [29]. A new system helps consumers easily find interest. In other words, a person with greater interest in a new system learns to use the system more easily than a person with less interest. Some studies have shown that pleasure in using the new system greatly influences PE [9] [31] [35]. Based on previous research results, this study posits the following hypothesis: H1: The power of influence will be different for amusement, engagement, trustworthiness, PU, and PE in relation to digital signage depending on the level of need for cognition and expertness. 3. Methods This study consisted of two stages. First, as a pilot study, we investigated the feasibility of the acceptance of the utility of new media and new advertisement formats provided by new media targeting the experts. A total of 199 university students and 96 experts participated in the study. The 96 experts were organized into three groups: 31 members of the Korean Society of Outdoor Advertisement Studies (KSOAS), 35 outdoor advertising agents, and 30 employees of outdoor 45

5 advertising media companies. We measured the levels of need for cognition in the 96 experts. Based on the pilot study, we identified a high group and a low group by accumulating the level of need for cognition and randomly sampling 30 participants from each group. The purpose of this experiment was to examine the effect of variables on the level of need for cognition and expertness. The experimental design was a two-way factorial design of two (level of need for cognition: high versus low) by two (expertness: experts versus the general public). The dependent variables were amusement, engagement, trustworthiness, PU, and PE. Cacioppo and Petty (1982) developed need for cognition as a measurement variable and used the Korean-type scale of need for cognition [7]. For the amusement variable, two items reorganized by Yang (2005, 2008) [12][34] based on measurement items by DuCoffe (1996) [35]; Schlosser, Shavitt, and Kanfer (1999) [26]; and Tsang, Ho, and Liang (2004) were measured using a five-point Likert scale. Engagement was defined as the possibility of consumer participation in digital signage advertising [29]. Three items reorganized by Shim (2009) [27] based on studies by Badin, Darden, and Griffin (1994) [3] and Liu and Arnett (2000) were measured using a five-point Likert scale [20]. To measure trustworthiness, three items were used that were combined by Yang (2008) [33] utilizing Tsang et al. (2004) [29] and Brackett and Carr (2001) [5]. PE was measured by Shim s (2009) scale [27], which reorganized Davis s (1989) measurement items [9]. Davis (1989) defined PU as a means of enhancing user job performance by using a particular system. In this study, PU was defined as gaining personal and social benefits through digital signage [9]. PU was measured by three items using a five-point Likert scale. PE was defined as freedom from effort in using the technology. Therefore, PE in this study referred to a personal belief that effort was not necessarily needed to use the digital signage advertisement. PE was measured by three items using a five-point Likert scale. The collected data was analyzed using a multivariate analysis of variance (MANOVA) with Windows SPSS (version 11.5). 4. Results A two-way MANOVA was used to examine the differences in consumers amusement, engagement, trustworthiness, PU, and PE in relation to digital signage according to their level of need for cognition and expertness. The results of the two-way MANOVA are shown in Table 1. According to these results, a major effect of need for cognition about a linear combination of amusement, engagement, trustworthiness, PU, and PE was not statistically significant (lambda =.988, F =.263, p.01). Instead, a major effect of expertness was statistically significant (lambda =.556, F = , p <.01). Moreover, an effect of interaction between need for cognition and expertness on a linear combination of dependent variables was not statistically significant (lambda =.908, F = , p.01). Furthermore, an effect of expertness as an independent variable on the individual dependent variables based on the results of a linear combination was significantly different in trustworthiness and PE, but there were no significant differences in amusement, engagement, and PU. A Roy-Bargmann stepdown analysis of the power of influence on the dependent variables showed that an effect of expertness only appeared in trustworthiness (stepdown F = 84.18, p.01), but PE was not statistically significant (stepdown F = 2.32, p.01), and other dependent variables were not significantly different either. Table 1. Results of the MANOVA NC IV DV Amusement Engagement Trustworthiness PU PE Wilks' Lambda.988 (F=.263) F df p eta 2 Stepdown test F df P / / / / / /

6 Amusement / Expertness Engagement Trustworthiness PU.556** (F=17.864) / /115 1/114 1/ PE / Amusement / NC Expertness Engagement Trustworthiness PU.908 (F=2.270) / /115 1/114 1/ PE / Therefore, the effect of expertness regarding digital signage appeared only in trustworthiness and PE. The level of acceptance for experts (M = 4.07, SD =.64) was much higher than for the general public (M = 3.11, SD =.54) in terms of trustworthiness. At the same time, experts (M = 4.15, SD =.55) showed a higher level of acceptance than the general public in terms of PE. Despite such results, the influence of expertness largely appeared only in trustworthiness. 5. Conclusion This study sought to find a way to vitalize digital signage as new outdoor media. It also compared and analyzed the process of acceptance for an expert group and a general-public group focused on the consumer s need for cognition using the TAM. The degree of acceptance might differ based on the consumer s type and individual characteristics due to digital signage being a new medium. The future of digital signage, as a medium for providing positive information, could take a positive turn if research were to identify the factors that positively and negatively evaluate the information of a particular medium with different levels. Yet, there has been a lack of theoretical frameworks and practical implications for the study of digital signage. The results of this study, however, suggest the applicability of digital signage as new outdoor media. There were two important findings in this study. First, the effect of trustworthiness was much higher for experts than for the general public. The general public might engage less with outdoor digital signage than with traditional media. This is because digital signage is a newly introduced outdoor medium. The lower engagement level is not simply due to its status as new media in the cognitive aspect, but because there has not been a development of diverse creatives. In other words, advertisers tend to use the transformed advertisements broadcasted in existing media platforms without designing them to fit into digital signage. The general public might not give full credit to digital signage because it does not present creatives suitable for its specific attributes. Therefore, digital signage needs to provide more realistic and genuine information than traditional media for the general public to increase its acceptance. In addition, unique creatives fitted to the new medium could improve acceptance. Second, there was no difference in the level of need for cognition. This could be due to personal attributes evaluating things differently. Although there was a big difference in the level of this attribute, the information assessment of digital signage didn t show any significant difference. That is to say, full-fledged digital signage has been utilized in advertising since 2009, and the problem is that those involved in the digital signage industry were mostly interested in sales for advertisements. No one showed interest in promoting the value, the range of applicability, and the existence of digital signage media. This is because there was no significant difference in this group s level of need for cognition. Neither experts nor the general public could estimate investment costs for hardware and software or the effects of investments. Namely, without fully considering effects by cost, experts and the general public both actively responded to accepting products, services, and ideas created by the novelty of the new media. Digital signage was just seen as new media regardless of the consumer s need for cognition. To revitalize digital signage, the second approach suggested the unlimited possibilities of its applicability as media to consumers. In particular, consumers were able to recognize similarities and 47

7 differences between existing media platforms. It was estimated that digital signage as advertisement media was widely spread, contact rate was rapidly increased, the level of engagement became higher, and differences appeared in the level of need for cognition as factors of individual difference. This study partially provides theoretical frameworks and practical guidelines for digital signage. To vitalize digital signage, we suggest increasing familiarity with digital signage as media and developing unique attributes to distinguish it from existing media. In addition, appropriate creatives should be utilized in digital signage. Such perspectives and implications might be accumulated through ongoing interest and research. 6. Acknowledgement Funding for this paper was provided by Namseoul University 7. Reference [1] Agarwal, R., & Karahanna,. E., Time Flies when You' re Having Fun: Cognitive Absorption and Beliefs about Iinformation Technology Uusage, MIS Quarterly, vol. 24, pp , [2] Aghdaie S. Fathollah Amiri, Sanayei, A., & Etebari, M., Evaluation of the Consumers Trust Effect on Viral Marketing Acceptance Based on the Technology Acceptance Model. International Journal of Marketing Studies, vol. 4, no. 6, pp ,2012. [3] Babin, B. J., Darden, W. R., & Griffin, M., Measuring Hedonic and Utilitarian Shopping Value, Journal of Consumer Research, vol. 20, no. 4, pp , [4] Bagozzi, R. P., ACR Fellow Speech. In. C. T. Allen and D. R. John (Eds.). Advances in Consumer Research, vol. 21, pp. 8-11, [5] Brackett, L. K., & Carr, B. N. Jr., Cyberspace Advertising vs. other Media: Consumer vs. Mature Student Attitudes, Journal of Advertising Research, vol. 41, no. 5, pp , [6] Burke, Raymond R.. Behavioral Effects of Digital Signage. Journal of Advertising Research, June, , [7] Cacioppo, John T., & Petty, Richard E., "The Need for Cognition", Journal of Personality and Social Psychology, vol. 42, no. 1, pp , [8] Cacioppo, John T., Petty, Richard E., Feinstein, J. A., & Jarvis, W. B., "Dispositional Differences in Cognitive Motivation: The Life and Times of Individuals Varying in Need for Cognition", Psychological Bulletin, vol. 119, no. 2, pp , [9] Davis, F. D., Bagozzi, R. P., & Warshaw, P. R., User Acceptance of Computer Technology: A Comparison of Two Theoretical Model, Management Science, vol. 35, no. 8, pp , [10] Dennis, C., Newman, A., Michon, R., Brakus, J. Josko & Wright, Len T., The Mediating Effects of Perception and Emotion: Digital Signage in Mall Atmospherics, Journal of Retailing and Consumer Services, vol. 17, pp , [11] Dennis, C., R. Michon, Brakus, J. Josko, Newman, A., & Alamanos, E., New Insights into the Impact of Digital Signage as a Retail Atmospheric Tool, Journal of Consumer Behaviour, J. Consumer Behav., vol. 11, pp , [12] Ducoffe, R. H., Advertising Value and Advertising on the Web, Journal of Advertising Research, vol. 36, no. 5, pp , [13] Gefen, D., & Straub, D. W., The Relative Importance of Perceived Ease of Use in IS Adoption: A Study of E-Commerce Adoption. Journal of the Association for Information Systems, [14] Hallahan, K., Need for Cognition as Motivation to Process Publicity and Advertising, Journal of Promotion Management, vol. 14, no. 3-4, pp , [15] Heckler, S. E., Childers, T. L., & Houston, M. J., On the Construct Validity of the SOP Scale, Journal of Mental Imagery, vol. 17, pp , [16] Karahanna, E., Straub, D. W., & Chervany, N. L., Information Technology Adoption across Time: A Cross-Sectional Comparison of Pre-Adoption and Post-Adoption Beliefs, MIS Quarterly, vol. 23, no. 2, pp ,

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