“Can A Retail Website Be Social?” …A Statistical Analysis

1. “Can A Retail Website Be Social?” …A Statistical Analysis Bolivar DePeña Kathleen Kirk John Warren

2. Theoretical Models and Hypothesis

3. Social Response Theory • The Computer as a Social Actor • Computers possess human-like attributes • Human Responses: • Politeness • Reciprocity • Interdependency • Interaction between similar and dissimilar personalities • Gender Stereotype • Flattery • Attribution Responsibility

4. The Conceptual Model

5. Social Response Theory (continued) • H1: Consumers perceive a Web site that uses language, voice, interactivity, and social role as being significantly more social than a Web site that uses only text and limited interactivity.

6. The Effects of Web Site Socialness Perceptions • Assuming social cues are perceived positively • H2: Web site socialness perceptions have a positive effect on arousal. • H3: Web site socialness perceptions have a positive effect on pleasure. • H4: Web site socialness perceptions have a positive effect on flow.

7. Flow • Composed of four dimensions: • 1. The user feels a sense of control over the computer interaction. • 2. The user’s attention is focused on the interaction. • 3. The user’s interest is increased during the interaction. • 4. The user’s curiosity is evoked.

8. Relationship Among Pleasure Arousal and Flow • Flow cannot occur when a person is in a low-arousal • H5: Arousal has a positive effect on flow • H6: Arousal has a positive effect on pleasure • H7: Flow has a positive effect on pleasure

9. Hedonic and Utilitarian Value • Hedonic value: entertainment and emotional worth of shopping experience • Utilitarian value: efficiency and timeliness with minimum irritation • H8: Flow has a positive effect on hedonic value. • H9: Flow has a positive effect on utilitarian value. • H10: Pleasure has a positive effect on (a) hedonic value and (b)utilitarian value. • H11: Arousal has a positive effect on (a) hedonic value and (b)utilitarian value.

10. Website Patronage Intentions • Consumers’ online experience is a critical determinant of shopping behavior. • H12: Hedonic value has a positive effect on Web site patronage intentions. • H13: Utilitarian value has a positive effect on Web site patronage intentions.

11. Method

12. Study 1: Testing the Proposed Model

13. Preparation • Two content-identical CTN sites created • High Social • Graphical female tour guide • Incorporates voice, interactivity, etc. • Politeness, professionalism, customized responses, etc. • Low Social • No character tour guide • All information was written • Very little interactivity • Pretests • Participants found the high-social website to be more social than the low-social website • (Xhigh social = 5.84 > Xlow social = 5.34, p = .027).

14. Procedure & Sample • Survey conducted in controlled lab setting • Each computer was identical • Participants wore headphones • Randomly assigned • Browsed site then took questionnaire on paper • The Participants • 337 undergraduate business students • Extra credit incentive • 49% F, 51% M • 97% ages 18-35 • ~80% had prior online shopping experience

15. Measures • Website Socialness Perceptions • Polite, helpful, intelligent, useful, & interactive • Pleasure & Arousal • Scales from negative reaction to positive reaction • Flow • Interest, curiosity, attention, & control • Hedonic & Utilitarian Value • Specific scale questions • Website Patronage Intentions • Likelihood to shop, willingness to buy, & willingness to recommend to friends

16. Analysis & Results • Website Socialness Perceptions • Analysis of Variance test confirms H1 • Mhighsocialness= 5.60, Mlowsocialness= 5.27, F = 11.68, p < .01 • Ratings for interactive character above midpoint • Confirmatory Factor Analysis • Found significant chi-square • X²(474) = 950.2, p = .00 • GFI = .85, TLI = .91, CFI = .93, RMSEA = .05 • Structural Model • GFI = .84, TLI = .91, CFI = .93, RMSEA = .06 • Less linkage between arousal or pleasure and patronage intention (.031, t = .633)

17. Study 2: Validating and Extending the Model

18. Preparation • Two custom blinds websites created • High Social • Interactive video of female shopping guide • Narration of page summaries • Click on character to find out more • Low Social • No shopping guide • No voice • No interactivity • New alternative hypothesis presented • H14: Arousal leads to higher levels of pleasure for consumers who are more involved with the product category than for those who are less involved

19. Procedures & Sample • Survey conducted in the field • Random recruits from a national online panel • Non-homeowners were omitted • 48-hour data collection period • Online survey after website browsing • Participants • 250 adult, non-student homeowners • Gender was even split • Ages were all over the place • 99% had shopped online (38.5% at least once a week) • 80% Caucasian

20. Measures • Website Socialness Perceptions • Polite, helpful, intelligent, useful, & interactive • Pleasure & Arousal • Scales from negative reaction to positive reaction • Flow • Interest, curiosity, attention, & control • Hedonic & Utilitarian Value • Specific scale questions • Website Patronage Intentions • Likelihood to shop, willingness to buy, & willingness to recommend to friends

21. Analysis & Results • Website Socialness Perceptions • Analysis of Variance confirms H1 • Mhighsocialness= 5.47, Mlowsocialness= 5.06, F = 4.96, p = .03 • Structural • Largely similar to Study 1, except for H11 (arousal leads to utilitarian value, .002, t = .003) • Involvement • (Δχ² = 4.90, p < .05)  (.329; t = 4.09, p < .01) for those involved with product category • Demographics • Link between arousal and hedonic value higher for F • Older participants (>50) differed from younger participants in some categories

22. DiscussionHow Consumers Emotionally Process Online Social Cues

23. Example • IKEA's Ask Anna

24. ANALYSIS OF TESTS STRENGTHS WEAKNESSES • Multiple Measures • Thorough • Large amount of Alternative Hypothesis (clarifies what they were looking for) • Scale is not explained • Specification of age groups • Results are generalizable • Gloss over inconsistencies with their model

25. Theoretical Implications • Studies encourage further consideration of social cues • Customer-employee interactions are induced • Positive impact on customer responses • Just as important online as in brick and mortar • Pleasure is positively related to flow • Hedonic and Utilitarian values serve as good predictors of patrons (not used in brick and mortar) • Moderating effects of individual differences (gender and age)

26. Managerial Implications • Business investment in technology is increasing • Website design: attract  retain • Human connection perception • Powerful marketing tools • Elements of fun in retail (not just completing transactions)

27. Managerial Implications (cont.) • Retailers contribute to online experience • Important to test social cues (robot vs. human) • Older markets need utilitarian cues (legibility/design) • Increase emotional bonds • Heightened for females – worth increasing cues • Other elements potentially important (color, navigation, pictures)

28. Limitations & Further Research • Better understanding of appropriate websites is needed • Other responses needed to be researched: service, satisfaction, and overall value • Results are generalizable – Teens and PreTeens need to be discussed in the future • Search strategies toward hedonic/utilitarian value • Environmental elements and ambient design affecting flow

29. References • Ikea. (2009). Retrieved October 10, 2009, from Ask Anna: www.ikea.com/us/en • Liz C. Wang, J. B. (2007). Can A Retail Website Be Social? Journal of Marketing , 143-157.