The Effect of the Consumers Innovativeness and Self-efficacy on Diffusion of Innovative Technology

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1 , pp The Effect of the Consumers Innovativeness and Self-efficacy on Diffusion of Innovative Technology Hye-young Oh 1 1 Dept. of Computer Information Science, Keimyung University 1095, Dalgubeoldaero, Daegu , KOREA ohhy55@kmu.ac.kr Abstract. This study aims to investigate the effects of consumers innovativeness and self-efficacy for acceptance and diffusion of innovative technology goods. As per TOM (Technology Acceptance Model) based on the reasoned action theory, consumers individual propensity for innovative technology strongly affected to purchase intension and diffusion. The current research explores 1) which individual propensity for innovative technology more affect to consumers purchase intention and satisfaction for innovative products, 2) how self-efficacy as another individual propensity can affect to acceptance and diffusion of innovative goods comparing innovativeness by age group. The results revealed that the two-way interaction between consumers innovativeness and self-efficacy was significant at 40 s age group but 20 s and 30 s age groups were not. Three-way interaction with innovativeness, self-efficacy and age group was significant for consumers satisfaction. Implications for age group were discussed. Keywords: Consumer Innovativeness, Self-efficacy, O2O Service, Acceptance for Innovative Technology, Diffusion of Innovative Technology. 1 Introduction The commercial divisions of space and time for transaction are disappearing quickly based on the info-communications infrastructure and the IT technology. Consumers can purchase almost everything at anytime and anywhere because of ubiquitous with internet and mobile environment. In these information and communications infrastructures, O2O (Online-To-Offline) service which is one of new e-commerce business models has attracted IT industries and innovative consumers both. Especially Consumers needs extended rapidly to use more evolved and convenient O2O service. O2O service was defined as one of evolved commercial business transaction linked online and offline together and interacted with each other closely [1]. Therefore, it is not only one of extended evolved transaction pattern but also systematic flexible transaction connected with online and offline closely. O2O service is translated from consumers decision making at online to search information and purchase product into ISSN: ASTL Copyright 2016 SERSC

2 delivery service and consumption at offline based on the connection with online and offline. It is blended virtual networking, distribution and consumption together based on the conversions as per whole process. In this recent trend, the boundary between online and offline collapsed and each service is complemented and substituted organically [2]. This study focused on the mobile application for food delivery service which is one of representative O2O service growing explosively in South Korea. Korean consumers needs for food delivery service sharply increase every year based on the lifestyle change. Mobile application for food delivery service included searching functions for related whole information and users reviews, easy-to-use payment and systematic business networking with lots of offline food restaurants. Korean mobile application service for food delivery as per representative O2O service is expected tremendous potential growth but previous researches leaned to innovative technology convergence more. Therefore, it is necessary to study innovative consumers individual and psychological variations related accepting O2O service with end-users view. In this paper, consumers innovativeness and self-efficacy as per individual variables are addressed in depth for acceptance and diffusion of innovative technology with food delivery application case. 2 Theoretical Background and Research Questions 2.1 Technology Acceptance Model (TAM) and Consumers Innovativeness It is long standing issues understanding reason why consumers accept or reject innovative technology. Previous researches have investigated the impact of consumers psychological attitudes on their acceptance for innovative products. Davis (1986) suggested the TAM (Technology Acceptance Model) based on the TRA (theory of reasoned action) which is one of intention models designed to explain virtually any human behavior [3, 4]. Davis (1986) introduced TAM including specifying the linkages between two key variables: perceived usefulness and perceived ease of use and end-users attitudes, intentions and adoption behavior for computer technology [5]. Many follow-up studies launched and defined that TAM empirically examine to predict and end-user acceptance or rejection of innovative technology with two variables-perceived usefulness and perceived ease of use that related subjective beliefs and perception [6, 7]. The one of important key variables affected consumers perception for innovative technology is innovativeness. Consumers Innovativeness means tendency to accept innovative technology product rapidly and it affect purchase and recommendation intention [8]. Copyright 2016 SERSC 235

3 2.2 Perceived Self-efficacy Perceived Self-efficacy is one of important psychological variables related innovative product acceptance and diffusion at TOM. The concept of self-efficacy is defined as consumers personal belief that they have sufficient ability to adopt innovative technology products and it may affects choice of behavioral intention [9]. Bandura (1977) argued that perceived self-efficacy has directly influence on choice of behavior and also stronger self-efficacy gets more active efforts to expend. The consumers have more stronger self-efficacy actively accept innovative technology with strong confidence and they believe that they can control the risk by accepting innovative technology [9]. It reveals that perceived self-efficacy variable is affected whether consumers accept or reject innovative technology and included information searching behaviors and selfconfidence for controlling perceived risk with different cognitive process to innovativeness [10]. This study aims to investigate how consumers innovativeness and perceived selfefficacy can affect innovative technology product acceptance and satisfaction for diffusion. 3 Data Collection Data collection conducted by online panel survey from twenty year old to thirty nine year old adults during October 2015 by Market Link Research institute. Valid participations were total 1,016 mobile food delivery application users within recent three months. All participants received constructive questionnaire and they checked their usage for mobile food delivery application and after that, they were asked about acceptance intention, satisfaction and recommendation intention for used mobile food delivery service application as per innovative technology product. Finally they answered their own individual propensity for innovativeness and self-efficacy with Likert 7scales. 4 Results and Discussion The key variables reliabilities were tested by SPSS 23.0 with Cronbach Alpha Coefficient scores and each variable s reliability is acceptable. As predicted, two-way interaction with innovativeness and self-efficacy to service satisfaction proved highly significant (M innovativenessh =3.75, M InnovativenessL =3.48; F=7.664, p=.006) and higher innovative consumers considerably higher self-efficacy. Two-way interaction to acceptance intention was not significant (M acceptanceintentionh=3.78, M acceptance-intentionl =3.57; F=.892, p=.345) because participants already had experienced mobile food delivery service application but two-way interaction to recommendation intention was significant too (M recommendation-intentionh =3.64, M recommendation intentionl=3.27; F=20.103, p=.000). 236 Copyright 2016 SERSC

4 This tendency was more clearly depending self-efficacy expectation. Highly selfefficacy consumers more satisfied (M InnovativenessH =3.86, M InnovativenessL =3.33; F= , p=.000) and they have higher acceptance intention (M acceptance intentionh=3.96, M acceptance intentionl =3.35; F= , p=.000) and recommendation intention (M recommendation intentionh =3.75, M recommendation intentionl =3.12; F= , p=.000) than lower self-efficacy consumers. Also, three-way interaction with innovativeness, self-efficacy and age variation to service satisfaction was significant. That results was below table1. Table 1. Three-way interaction of innovativeness, self-efficacy and age on service satisfaction Sum of squares of typeⅢ df Mean square F p Innovativeness * Self-efficacy age Innovativeness * Self-efficacy Innovativeness * age Self-efficacy * age Innovativeness * Self-efficacy * age Limitations and Future Research The present research provides interesting result that consumers psychological difference affected acceptance of innovative technology product. Especially this result tries to show age effects for acceptance of innovative technology by self-efficacy. In the future, further research is needed to better understand why oldie groups more depend on self-efficacy and how can manage this variable to accept innovative technology. References 1. Zhang, R.: The development of O2O Model Enterprises Logistics Engineering and management, vol.35, no.12, pp (2013) 2. Chen, S. H., Lee, K. P.: The Role of Personality Traits and Perceived Values in persuasion. An Elaboration Likelihood Model Perspective on Online Shopping, Social Behavior and personality, vol.36, no.1, pp (2008) Copyright 2016 SERSC 237

5 3. Ajzen, I., Fishbein, M.: Understanding Attitudes and Predicting Social Behavior. Prentice- Hall, Englewood Cliffs, NJ, pp.4 (1980) 4. Davis, F. D.: A Technology Acceptance Model for Empirically Testing New End-User Information Systems: Theory and Results. Doctoral dissertation, Sloan School of Management, Massachusetts Institute of Technology, (1989) 5. Davis, F.D., Bagozzi, Richard P., Warshaw, Paul R.: User Acceptance of Computer Technology: A Comparison of Two Theoretical Models. Management Science, Vol.35, No.8, pp (1989) 6. Kuo, Y. F., Yen, S. N.: Towards an understanding of the behavioral intention to use 3G mobile value-added services. Computers in Human Behavior, vol.25, no.1, pp (2009) 7. Verkasalo, H., Loez-Nicolas, C., Molina-Castillo, F. J., Bouwman, H.: Analysis of Users and Non-Users of Smart Phone Applications. Telematics and Informatics, vol.27, no.3, pp (2010) 8. Hirshmann, E. C.: Innovativeness, Novelty Seeking, and Consumer Creativity. Journal of Consumer Research, vol.7, no.3, pp (1980) 9. Bandura, Albert: Self-efficacy: Toward a Unifying Theory of Behavioral Change. Psychological Review, Vol.84, No.2, pp (1977) 10. Witte, K.: Fear control and danger control: A test of the extended parallel process model, EPPM. Communications Monographs, vol.61, no.2, pp (1994) 238 Copyright 2016 SERSC