TESTING A THEORETICAL MODEL TO EXAMINE THE RELATIONSHIPS AMONG E-SOCIAL SHOPPING MOTIVATION, PERCEPTION, AND BEHAVIORAL INTENTION By Zee-Sun Yun A DISSERTATION Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILSOPHY Retailing 2011 ABSTRACT TESTING A THEORETICAL MODEL TO EXAMINE THE RELATIONSHIPS AMONG E-SOCIAL SHOPPING MOTIVATION, PERCEPTION, AND BEHAVIORAL INTENTION By Zee-Sun Yun The importance and effectiveness of Internet marketing strategies via social networking is recognized recently. There is a growing interest in satisfying consumer demand for ConsumerGenerated Content (CGC) and strengthening the power of online Word-of-Mouth (WOM) via social media channels because both can support consumers in making informed decisions and can help marketers increase sales. In the present study, the researcher proposed a comprehensive conceptual model to explain consumers‟ e-social shopping behavior. Using the underlying tenets of Social Cognitive Theory (SCT), specifically this study examined the relationships between 1) social shopping motivation (i.e., information-oriented and socially-oriented motives), 2) social shopping resource credibility (i.e., intellectual and social capital), 3) social shopping attention (i.e., perceived utilitarian and hedonic value of social shopping), 4) social shoppers‟ memory (i.e., perceived self-efficacy in decision making), and 5) social shoppers‟ behavior (i.e., online WOM and purchase intentions). As a result, the proposed model investigated the effects of social shopping motives and beliefs about social shopping resources on consumers‟ value perceptions which can influence self-confidence in decision making and lead to online WOM buzz and purchase decisions. The survey instrument for the empirical study was developed and modified to reflect the e-social shopping environment. The population was online consumers who join web communities, such as Facebook, MySpace, etc. to search for or share shopping information. Online survey research methods were used to recruit participants and collect data from online consumer panels of a websurvey service company. Data were collected during May 2010; four hundred and three usable questionnaires were analyzed. The results of structural equation modeling indicated that perceived values were significantly affected by credibility perceptions of informational and social resources and moderately influenced by social shopping motives. In addition, perceived values significantly influenced behavioral intentions. Perceived self-efficacy was more strongly and significantly influenced by utilitarian value than hedonic value. Perceived self-efficacy was a mediator between perceived values and behavioral intentions. In general, the findings of this study supported the proposed theoretical model in explaining consumers‟ e-social shopping behavior. Based on these findings, theoretical and managerial implications were discussed. Copyright by ZEE-SUN YUN 2011 ACKNOWLEDGEMENTS I would never have been able to finish my dissertation without the guidance of my committee members and support from my parents and family. I would like to express my deepest gratitude to my advisor, Dr. Linda Good, for her excellent guidance, caring, encouragement, and patience. I am very grateful to Dr. Brenda Sternquist, Dr. Patricia Huddleston, and Dr. Robert LaRose for their willingness to serve on my committee and valuable inputs. I would also like to thank my parents, twin sister, and younger brother in South Korea for their love. v TABLE OF CONTENTS LIST OF TABLES ..................................................................................................................... viii LIST OF FIGURES ..................................................................................................................... ix CHAPTER I INTRODUCTION ........................................................................................................................ 1 Statement of the Problem ............................................................................................... 4 Research Objectives ....................................................................................................... 4 Significance of the Study ............................................................................................... 5 CHAPTER II LITERATURE REVIEW .............................................................................................................. 7 Consumer Uncertainty and Information Search ............................................................ 7 Online Information Seeking Behavior: Social Shopping............................................... 8 Social Shopping and Consumer Decision Support ...................................................... 10 A Theory of Decision Support: Social Learning and Social Cognitive Perspectives .. 11 MODEL DEVELOPMENT ........................................................................................................ 17 Motivation for Social Shopping and Attention to Social Shopping ............................. 17 Information-oriented motives and utilitarian value perceptions ........................ 21 Socially-oriented motives and hedonic value perceptions ................................. 24 Credibility of Social Shopping Resource and Attention to Social Shopping............... 25 Intellectual capital credibility and utilitarian value perceptions ........................ 26 Social capital credibility and hedonic value perceptions ................................... 28 Attention to Social Shopping and Memory of Social Shopper .................................... 30 Perceived values and perceived self-efficacy .................................................... 31 Attention to Social Shopper and Social Shopper‟s Behavior ...................................... 32 Perceived values and purchase intentions .......................................................... 32 Memory of Social Shopper and Social Shopper‟s Behavior ....................................... 34 Perceived self-efficacy and purchase intentions ................................................ 34 CHAPTER III RESEARCH METHODS ........................................................................................................... 36 Data Collection and Sampling Procedures .................................................................. 36 Measures ...................................................................................................................... 38 Information-oriented motives ............................................................................ 38 Socially-oriented motives .................................................................................. 39 Perceived credibility of intellectual capital ........................................................ 40 Perceived credibility of social capital ................................................................ 41 Perceived social shopping value ........................................................................ 42 vi Perceived self-efficacy ....................................................................................... 42 Online WOM intention ...................................................................................... 43 Purchase intention .............................................................................................. 43 CHAPTER IV RESULTS OF ANALYSES ........................................................................................................ 45 Demographic Characteristics of the Sample ................................................................ 45 Preliminary Analyses ................................................................................................... 49 Confirmatory Factor Analysis ...................................................................................... 53 Analysis of the Structural Model for Hypothesis Testing ............................................ 61 DISCUSSION ............................................................................................................................. 66 Antecedents of Perceived Social Shopping Values ...................................................... 66 The Effects of Perceived Social Shopping Values ....................................................... 68 The Relationships among Perceived Self-Efficacy and Behavioral Intentions ........... 70 CHAPTER V CONCLUSION AND IMPLICATIONS..................................................................................... 71 Summary of the Study ................................................................................................. 71 Theoretical Implications .............................................................................................. 75 Managerial Implications .............................................................................................. 76 LIMITATIONS AND FUTURE RESEARCH............................................................................ 80 APPENDICES APPENDIX A. Survey Content .................................................................................................. 85 APPENDIX B. Survey Instrument ............................................................................................. 87 APPENDIX C. Frequency Statistics for Information Seeking Behavior of the Sample ............ 94 APPENDIX D. Covariance Matrix ............................................................................................. 98 BIBLIOGRAPHY ..................................................................................................................... 100 vii LIST OF TABLES Table 1. Classification of Social Shopping Motives ..................................................................... 20 Table 2. Demographic Characteristics of the Sample ................................................................... 47 Table 3. Measurement Properties .................................................................................................. 50 Table 4. Results of Confirmatory Factor Analysis ........................................................................ 57 Table 5. The Phi Values and Confidence Interval for Discriminant Validity ................................ 60 Table 6. Results of Path Model Analysis ...................................................................................... 64 Table 7. Summary of Hypothesis Testing ..................................................................................... 74 Table 8. Covariance Matrix for SEM Path Analysis ..................................................................... 99 viii LIST OF FIGURES Figure 1. Social Learning Theory ................................................................................................ 14 Figure 2. Social Cognitive Theory ............................................................................................... 15 Figure 3. Conceptual Framework of the Study ............................................................................ 16 Figure 4. Proposed Model and Hypotheses ................................................................................. 35 Figure 5. Recruitment Advertising/Web Greeting ....................................................................... 38 Figure 6. Proposed Structural Equation Model for Measurement ............................................... 44 Figure 7. Confirmatory Factor Analysis ...................................................................................... 54 Figure 8. Summary of Path Model Analysis Results ................................................................... 65 Figure 9. Information Search/Sharing Interest............................................................................. 95 Figure 10. Information Search/Sharing Activity.......................................................................... 95 Figure 11. Information Search/Sharing at a Certain Website....................................................... 96 Figure 12. Information Search/Sharing at a Certain Situation ..................................................... 96 Figure 13. Product or Service Categories .................................................................................... 97 ix CHAPTER I INTRODUCTION Consumers are increasingly making decisions in computer-mediated environments since Web 2.0 has offered a useful and essential interactive media tool and platform for communication, information search, and shopping. Although websites offer consumers immense amounts of information and choice and great convenience, the tasks of finding the exact products that meet consumer needs and making a purchase decision with confidence and credibility can be complicated. Sometimes, people experience frustrations when shopping online and thus hesitate to make online product purchases. Limitations in product content and communication service inhibit consumers‟ level of confidence during decision making and can result in lost sales. Over three-quarters of online shoppers are significantly influenced by the quality of content, relative to text, image, and tools (e.g., ratings/reviews, product comparisons), however, shoppers reported that website content is insufficient to complete research or purchase online „always, most often, or some of the time‟ (Freedman, 2007, 2009). Shoppers left a website without purchasing and went to a competitor or continued their online research, due to a lack of online product information and assistance (Freedman, 2007, 2009). Therefore, it is important to understand what type of content can increase consumers‟ confidence when judging products and how to provide comprehensive content that satisfies and converts shoppers into buyers. Today‟s consumers spend significant time learning about products through ComputerMediated Communication (CMC) which provides users with a massive information resource and 1 a vehicle for social interaction (Williams & Rice, 1983). As the Internet empowers consumers and enables CMC to accelerate the flow of information, consumers are likely to rely on robust content, such as ratings, reviews, and recommendations (a.k.a. 3Rs of Consumer-Generated Content (CGC)), and to research across channels, such as consumer-generated media or social media. So, current trends show increasing consumer demand for the 3Rs and online Word-OfMouth (WOM) communication. According to a recent survey by Forrester Research, based on 5,000 online shoppers, 64% said that user reviews and ratings were the most-desired web features to see on websites ("Online buyers seek out user reviews ", 2008). In addition, according to data of over 1,000 online consumers surveyed from joint research by The e-tailing Group and PowerReviews, 39% of respondents read eight and more reviews in order to be confident in judging a product ("5 social shopping trends", 2010). Also, most of online shoppers have made a purchase based on recommendations through web community and social media channels and their buying behavior is significantly influenced by the following sources: customer reviews (71%); community forums (45%); Facebook wall (31%); videos (30%); Facebook fan page (25%) ("5 social shopping trends," 2010). As CGC and WOM become important and, in some cases, essential in consumer decision making, marketers are recognizing and paying attention to the 3Rs and social media platforms (e.g., Facebook and Twitter) to assist in building social commerce and to improve the effectiveness of Internet marketing strategies (e.g., viral marketing, social media marketing) (Barton, 2006; Gardner, 2010; Gogoi, 2007; McCarthy, 2007). Creating and sharing CGC has long been used by e-tailers such as Amazon and Netflix, but this practice is now spreading rapidly to a broader array of retailers. According to MarketingSherpa research, by the end of 2005, 23% of e-commerce sites adopted features that allow for consumers to post comments, 2 reviews, ratings, and in some cases photos and videos; the percentage nearly doubled to 43% by the end of 2006 (Gogoi, 2007). Continuing this growth trend, a recent Shop.org study reported 60% of retailers use customer reviews ("Industry statistics," 2010). Many online shopping sites are introducing widgets that let users publish their wishlist or shopping list on their blogs and social networking sites. Also, retailers use social websites to talk about upcoming events, products, and problems and to stay connected to customers. Forrester Research estimates that 70% of retailers are on Facebook or MySpace, and more than half are on Twitter (Martinez, 2010). 58% of retailers who adopt customer reviews said improving the customer experience was the most important reason for adding social commerce (selling with social media) to their sites, followed by building customer loyalty (47%), driving sales (42%), and maintaining a competitive advantage (37%) (Freedman, 2008). Also, a main benefit of customer reviews and ratings is that e-tailers can improve their browsing to buying conversion rates ("Industry statistics," 2010, "The state of retailing online 2007," 2007). The e-tailing Group study found that 11% of retailers reported that their conversion rates increased by 20% or more as a result of adding reviews to their sites and 21% reported an 11% to 20% increase ("Industry statistics," 2010). A UK survey found user-generated content increases conversion levels: 77% of website owners reported web traffic increased and 42% said the average spend on site increased ("Industry statistics," 2010). Therefore, retailers should recognize the important and growing role of CGC and WOM in social commerce in order to create places where people can collaborate online, get advice from trusted individuals, find goods and services and then purchase them. 3 Statement of the Problem While there is a growing interest in and evidence of the power of CGC and WOM, most e-tailers continue to simply focus on providing producer-generated content or web-based product recommendations via computer-based decision support systems, such as collaborative filtering systems, reputation systems, and computational choice systems. Moreover, most e-tailers still do not make social navigation or community-based web channels available, these tools enable consumers to interact socially and search, share, and shop with others who have similar preferences and interests. Even though the number of social shopping sites that allow consumers to shop in a social networking environment is growing, most of the sites are not yet recognized by consumers. Despite the extensive exchange of information that occurs between consumers in community-based web environments, there is a lack of research investigating the impact of such exchanges on consumer purchase decision-making. Research Objectives To successfully respond to growing social shopping market demands, retailers should understand the underlying influences of social shopping to enhance consumer decision-making and adjust their marketing strategies accordingly. Therefore, in our study, we specifically aim to understand who social shoppers are and why they are likely to search for, share with others, and shop online for products. In addition, we explore how social shopping influences consumers‟ shopping experiences, confidence in their online WOM intentions, and purchase decisions. The objectives of this study are to develop a conceptual framework and to examine a theoretical model based on Social Cognitive Theory (SCT) to explore consumers‟ social shopping behavior. 4 Significance of the Study As social shopping is a key shopping process for shoppers and a key marketing factor for retailers to manage, this study provides a rich understanding of online social shopping activity by initiating scholarly inquiry into the potential competitive advantage of social commerce services and by providing theoretical and conceptual foundations for further understanding online shoppers and their shopping behavior. Thus, this study contributes to the literature in several ways. First, it expands the application of SCT to social shopping behavior. We expect that use of social shopping tools helps consumers acquire decision support during consumer decision making and that these tools have a significant effect on their self-efficacy level which leads to a purchase decision and online WOM buzz. Second, this study formulates managerial implications by investigating key attributes (e.g., motivations, credibility for intellectual capital and social capital, perceived values) of social shopping that impact consumer decision-making. The results of this study will offer insight to retailers and researchers about the role and power of the social element and the comprehensive and credible content in a social shopping environment. CGC and social media can be considered effective tactics for both consumers and retailers, and it can function as a differentiation strategy designed to gain and retain customers and as a result, to gain market share. Thus, this study will provide evidence for retailers regarding if and how social shopping might be effective in customer decision making and how it might enhance the customer shopping experience by adding value, and ultimately, increasing sales. In Chapter I, we discussed the background of the study, the research problem, the research objectives, and the significance of the study. The reminder of the dissertation is organized as follows. In Chapter II we provide a literature review of the focal constructs of the 5 study and we propose a conceptual framework and theoretical model incorporating various aspects of online social shopping including motivational orientation for social shopping, credibility for social shopping resource, perceived value of the social shopping experience, consumer shopping self-efficacy, and consumer purchase behavior. We discuss, research design, data collection, and instrument development in Chapter III. In Chapter IV, we provide a sample description, the results of data analysis and discussion of the findings. Finally, Chapter V is devoted to limitations of the study, implications, and conclusions. 6 CHAPTER II LITERATURE REVIEW In this chapter, we review the literature relevant to the current study. First, we discuss consumers‟ opportunities and limitations in online shopping environments and their influence on purchase decisions. Next, we discuss consumers‟ social shopping behavior as a decision aid/support strategy and how it enhances the shopping experience and self-efficacy of consumers as they make their purchase decisions. Finally, we discuss SCT as an appropriate conceptual framework. Consumer Uncertainty and Information Search We all make numerous decisions everyday as consumers. Specifically, we engage in a purchase decision-making process, which leads to the selection of a course of action among several alternatives. According to Mitchell, Walsh and Yamin (2005), consumer confusion is related to too many, too similar, or ambiguous information stimuli; this prevents consumers from fully understanding and being confident about products or the purchase environment because of the complexity of the situation and the inability to process and manage all alternatives. If the decision-making is influenced by conditions of uncertainty, risk, or complexity, consumers can face serious decision difficulty. Consumer decision making research in traditional and online shopping environments acknowledges that indicators of choice difficulty include deferring the decision to buy or feeling unhappy with the choice (Haubl & Trifts, 2000; Iyenegar & Lepper, 2000; Schwartz et al., 2002). As a result, consumer confusion yields several unfavorable 7 consequences, such as negative WOM, dissatisfaction, and reduced self-confidence. Desire for information is often a result of higher levels of uncertainty. This positive and significant relationship between uncertainty and information seeking can be explained by Uncertainty Reduction Theory (URT) (Berger, 1987; Weiss, Lurie, & MacInnis, 2008). Because uncertainty is difficult to deal with, people seek information and communicate with other people to reduce the ambiguity. As consumers‟ uncertainty about products or processes increases, they are likely to increase information search in an effort to decrease the uncertainty (Urbany, Dickson, & Wilkie, 1989). Moreover, when consumers have low self-efficacy and selfconfidence for problem-solving and a high degree of consumer involvement and/or a lack of time and expertise, they are likely to rely on decision support aids (e.g., consultant, recommender) to gather information about products/brands and they are likely to seek recommendations from relevant others (Urbany et al., 1989). Online Information Seeking Behavior: Social Shopping To seek information, consumers use two methods, internal search and external search. Internal search involves recalling stored information from memory. If the result is not satisfactory, then people start an external search that includes collecting information from outside sources. A consumer engages in external information search in order to gain information so that attitudes may be formed and/or changed. The consumer may search to identify what alternative products or brands are available or may seek to identify the various evaluative criteria on which the products or brands may be compared (Mowen & Minor, 1997). Also, Mowen and Minor (1997) suggest that consumers may seek information to help them decide on the relative importance of the various evaluative criteria and form beliefs about the extent to which 8 alternatives possess the attributes they consider to be important. In the past, people were limited to sharing information with their friends, family, or neighbors but now people can influence the global community by sharing their experiences on the Internet. According to Hoyer and McInnis (2001), outside sources can be either offline or online. Some external search sources are media search (view ads or other types of marketerproduced communication) and interpersonal search (use email, chatbox, FAQ, advice from friends, staff, and other consumers). Powered by social software and Web 2.0 tools (e.g., weblogs, chat rooms, social network services, and instant messaging) that support social behavior to create and recreate social conventions and social contexts, the Internet allows consumers to interact, exchange ideas, and compare experiences with other consumers (Chen, Griffith, & Shen, 2005). Social is a relational connection that motivates consumers to participate and contribute CGC which becomes an essential digital asset for purchase decision-making and WOM marketing. For example, MakeupAlley.com is the ultimate insider destination for all things related to beauty and is the largest beauty-focused social network on the Internet (Leff, 2002, "Makeupalley About Us," 1999); women connect to discuss beauty, fashion, and lifestyle, using message boards, product reviews, emails, photos, and shopping diaries. Also, YouTube and sites with blogging capabilities, such as Facebook, MySpace and Twitter, are growing rapidly and frequently feature comments about brands and products. According to Thomas, Peters, and Tolson‟s (2007) exploratory study of the virtual community, a general discussion of fashion is taking place on MySpace within the forum Fashion and Style. The four most popular discussion categories of fashion-related information are personal style, brands and designers, tips and advice, and retailers. In user-generated content of websites like Youtube, consumers increasingly rely on and are interested in product information and 9 recommendations (Cheong & Morrison, 2008). Recent industry data indicate that consumers are more likely to consider blogs, Facebook, MySpace, and Twitter as an important tactics to search for or share product information online before making a purchase ("Industry statistics," 2010). Thus, current trends in social commerce that include the social side of activity in the Internet business (e.g., social networking, social search, social media, social bookmarking, and social shopping) increase research interest in marketers‟ social web applications or services that can appeal to and deliver an integrated social experience to consumers. In other words, social commerce provides customers with the means to virtually interact with one another in order to make better purchase decisions. The search for additional information to enhance decision making ease and focus is recently embracing an added dimension related to the nature of the social networking generation, the number of social shopping websites (e.g., ThisNext, Kaboodle, StyleHive, StyleFeeder, Wists) is growing (Gordon, 2007; McCarthy, 2007; Tedeschi, 2006). This new type of online shopping community combines two favorite online activities, social networking and online shopping, by engaging in the practice of online WOM (Schneider, 2006). Through searching and socializing in social shopping sites, consumers can learn what is popular, exchange shopping ideas with others, and follow links to products they would not necessarily find on their own and they can narrow product selections based on reviews and recommendations from like-minded people with similar tastes (Gordon, 2007). Social shopping allows a consumer to access the resources‟ accumulated information through the relationships among other members. Social Shopping and Consumer Decision Support CGC and social networks produce resources such as information and support from the 10 customer perspective (Lin, 2001). Intellectual capital and social capital are resources provided through social shopping and we can expect them to play a significant role in providing decision information and support, and improving decision quality. In other words, perceived benefits of social shopping in consumer decision-making will depend on what consumers think about the intellectual capital and social capital and how consumers evaluate them as to whether the information obtained is accurate and originates from knowledgeable and trustworthy sources. Online consumer-to-consumer communications may serve an important role in moving a consumer closer to a positive purchase decision. Credible, informational social influence (also called social proof, information obtained from another as evidence about reality) is likely to reduce a consumer‟s uncertainty associated with a purchase decision and increase the consumer‟s confidence in that decision (Kiecker & Hartman, 1993, 1994). During social shopping, the consumer is informed about products and becomes familiar with how markets function. When shopping information or an experience is communicated to one‟s friends and acquaintances, the comments or opinions made by these significant others influence the consumer‟s consumptionrelated self-confidence (Folkes & Kiesler, 1991). Thus, increasing confidence through credible information search or sharing can reduce uncertainty in consumer decision-making. If consumers interact successfully in social shopping environments, they should have a high level of shopping assurance and a greater likelihood of purchase intention. A Theory of Decision Support: Social Learning and Social Cognitive Perspectives Consumers are often influenced by other consumers. They imitate purchase and consumption behaviors of consumers they admire, gather information from other consumers in the process of social communication, and seek advice from others who have greater knowledge 11 and experience. When consumers collect information, through reading or talking to others or when they simply look around (browse) and examine new or unfamiliar products, vicarious (observational) shopping exploration occurs in the consumer decision making process (Price & Ridgway, 1982). Because of the amount of perceived risk involved in Internet shopping, informational social influence is important and many potential online shoppers tend to wait and observe the experiences of others who have tried the product before they consider adopting it (Lee, Cheung, Sia, & Lim, 2006). Consumers gain knowledge through social shopping by referring to others‟ reviews or feedback that could be treated as experience-based sources of comments from people who have purchased and used the product. So, searching for information and seeking advice from others are part of a learning process in which people observe the successful experiences of their social groups before deciding whether to buy a product. Social Learning Theory (SLT) posits that people learn from one another, including the process of knowledge acquisition or the concept of observational learning (vicarious condition), imitation, and modeling (Bandura, 1977; Ormrod, 1999). Observational learning is a process by which individuals observe how others behave in response to certain stimuli and reinforcements. Observational learning occurs when a person watches the actions of another person and the reinforcements that the person receives (Bandura, 1997). Bandura (1977) says “most human behavior is learned observationally through modeling: from observing others, one forms an idea of how new behaviors are performed, and on later occasions this coded information serves as a guide for action” (p.22). Miller and Dollard (1941) proposed the theory of social learning. Later, Bandura and Walters (1963) extended the theory with the principles of observational learning and vicarious reinforcement and originally named their contribution observational learning theory. Bandura 12 eventually renamed it as SLT because it was especially applicable to learning social behaviors and observations that were usually focused on other people. SLT is a cognitive learning theory that is based on mental information processing. It is often employed as a response to problem solving, enabling individuals to gain some control over their environment. There are several guiding principles of SLT: (1) people can learn by observing the behavior of others and observing the outcomes of those behaviors; (2) learning may or may not result in a behavior change; and (3) as a result of behavior being reinforced, people form expectations about the consequences that future behaviors are likely to yield (Bandura, 1977). According to Miller (2005), the observer can be affected by either an inhibitory effect or a disinhibitory effect after the observations. The inhibitory effect occurs when an observer sees the action of another involved in a situation being punished for that action. The disinhibitory effect occurs when an individual receives positive reinforcement or is praised for an action and the observer learns from and imitates that action (Miller, 2005). Applied to the case of observations in social shopping, consumers are likely to avoid purchasing a product when they read negative reviews about the product. On the other hand, consumers tend to have a motivation to conform to the positive opinions of the normative referents and will likely form an intention to buy the product. Learning by observation involves the following steps in the modeling process: motivation, attention, and memory (See Figure 1). Bandura (1977) considered motivation as “cause” learning because observers will perform the act only if they have some reason to do so. Attention includes modeled events (distinctiveness, affective valence, prevalence, complexity, and functional value), which observers cannot learn unless they pay attention to what is happening around them. Memory (retention and reproduction) explains observers‟ ability to 13 remember what they paid attention to and to replicate the behavior that the model demonstrated. Figure 1. Social Learning Theory Motivation Learning by Observation Attention Memory According to SLT (Bandura, 1977), the effectiveness of behavior modeling can be increased, depending on which component in the processes is involved. Observers are more likely to adopt a modeled behavior if it results in outcomes they value; observers are more likely to adopt a modeled behavior if the model is similar to the observer and has admired status, and the behavior has functional value; and coding modeled behavior into words, labels, or images results in better retention than simply observing. In 1977, Bandura proposed his concept of self-efficacy, while he disproved the traditional learning theory for understanding learning. In 1986, he renamed SLT to Social Cognitive Theory (SCT) because cognitive processes mediate social learning. The SCT-based framework for designing, implementing, and evaluating interactive learning includes observational (vicarious) learning and self-efficacy. According to Bandura (1997), learning is a function of the extent to which individuals are able to reflect upon and internalize their own successes and failures. Self-efficacy is achieved when the learner identifies his/her ability to perform. Learning most likely occurs if there is a close identification between the observer and the model and if the observer also has a good deal of self-efficacy (Bandura, 1988). 14 SCT provides a framework for understanding, predicting, and changing human behavior. SCT describes learning as the interrelation between behavioral, environmental, and personal factors (Bandura, 1986). SCT provides the theoretical framework for interactive learning to explain how people acquire and maintain certain behavioral patterns and how people‟s experiences, environments, and behaviors affect how they learn. In the Bandura (1986) model (See Figure 2), the interaction between the person and behavior involves the influences of a person‟s thoughts and actions. The interaction between the person and the environment involves human beliefs and cognitive competencies that are developed and modified by social influences and structures within the environment. The third interaction, between the environment and behavior, involves a person‟ behavior determining the aspects of their environment and in turn, their behavior is modified by that environment. Thus, SCT is helpful for understanding and predicting both individual and group behavior and identifying methods in which behavior can be modified or changed. Figure 2. Social Cognitive Theory Personal Factors Behavioral Factors Environmental Factors Applying SCT to our study, consumers‟ observational learning occurs when they have some reason to search for and share information through social shopping. For example, social shoppers can check hot deals, sales information, reviews, or recommendations before making a 15 decision and to shop with others who have similar tastes/interests. In social shopping, consumers are likely to learn from and adopt others‟ reviews and recommendations if CGC is relevant and social group members are trustworthy and similar to the consumers seeking the information. Moreover, when consumers pay attention to others‟ reviews and recommendations, learning takes place, which may become valuable and helpful in their decision making. According to SCT, interactive learning allows learners to gain confidence through practice (Bandura, 1977; Bandura, 1997). Likewise, social shopping activity increases consumers‟ ability to perform decision-making confidently and/or successfully and increase their behavioral intention. In the next section, based on SCT, we develop our conceptual model (see Figure 3) that explains social shopping behavior and its effect on consumer‟s shopping experience, decisionmaking, and behavioral intentions. Social shopping motivation, social shopping attention, and social shoppers‟ perceived self-efficacy and memory are the main social cognitive learning factors affecting their shopping behavior. Social shopping resource credibility is posited as an antecedent factor of social shopping attention. Figure 3. Conceptual Framework of the Study Opportunities and Limitations of Consumers in Online Shopping Environment Social Shopping Motivation Social Shopping Resource Credibility Social Shopping Attention 16 Social Shoppers‟ Memory Social Shopper‟s Behavior MODEL DEVELOPMENT In this section, we discuss relationships between 1) social shopping motivation (i.e., information-oriented and socially-oriented motives), 2) social shopping resource credibility (i.e., credibility of intellectual capital and social capital), 3) social shopping attention (i.e., perceived utilitarian and hedonic value of social shopping), 4) social shoppers‟ memory (i.e., perceived self-efficacy in decision making), and 5) social shoppers‟ behavior (i.e., purchase intention and online WOM intention). Based on proposed hypotheses, a structural equation model is presented. Motivation for Social Shopping and Attention to Social Shopping Shopping motives are the drivers of behavior that bring consumers to the marketplace to satisfy their internal needs (Westbrook & Black, 1985). To identify social shopping motivations, we reviewed literatures in offline and online shopping, communication media use, and social networking. Since Tauber‟s (1972) seminal work on “why do people shop”, numerous shopping motive studies were conducted in the pre-Internet shopping period to identify shoppers‟ underlying shopping motives and their relationship to shopping behavior (Bellenger & Korgaonkar, 1980; Dawson, Bloch, & Ridgway, 1990; Eastlick & Feinberg, 1999; Westbrook & Black, 1985). Based on in-depth interviews, Tauber (1972) hypothesized six personal motives for shopping (e.g., diversion, learning about new trends, self-gratification, sensory stimulation, role playing, physical activity) and five social motives (e.g., social experiences outside the home, communication with others who have a similar interest, peer group attraction, pleasure of bargaining, status/authority). Tauber (1972) developed these shopping motivations with the basic principle that shoppers are motivated by a variety of psychosocial needs other than those strictly 17 related to acquiring a particular product. McGuire (1974) identified two categories of motives or needs that affect mass communication: internal, nonsocial motives or needs and external, social motives or needs. Internal needs are satisfied by thinking about and exploring the world, irrespective of social activities (e.g., consistency, causation, categorization, cues, independence, and curiosity). External needs focus on interactions with other people (e.g., self-expression, ego-defense, assertion, reinforcement, affiliation, and modeling). Westbrook and Black (1985) connect Tauber‟s (1972) framework to McGuire‟s (1974) typology of human motivations and propose that shopping behavior occurs to acquire a desired product, to provide satisfaction with nonproduct-related needs, or to mainly accomplish goals not related to product acquisition. These shopping motives are captured in seven dimensions (e.g., anticipated utility, role enactment, choice optimization, affiliation, stimulation, negotiation, and power/authority) and contain both hedonic and utilitarian elements (Westbrook & Black, 1985). Over the past decade, a number of studies examined shopping motives in the context of online shopping. Parsons (2002) applied Tauber‟s (1972) personal and social motives to Internet shoppers to determine how the motives influence online shoppers. Three of Tauber‟s (1972) six personal motives (i.e., diversion, self-gratification, and learning about new trends) are strong motives for online shopping. Four (i.e., social experiences outside the home, communication with others who have a similar interest, peer group attraction, and status/authority) of the five social motives are descriptive of online shopping motives; only bargaining pleasure failed to be a shopping motive for Parson‟s (2002) sample. Role playing, physical activity, and sensory stimulation do not describe online shopping motives. Rohm and Swaminathan (2004) classified six motives (i.e., shopping convenience, information seeking, social interaction, immediate 18 possession, retail shopping experience, and variety seeking) for shopping online and offline and clustered motives to identify shopping types. As consumers use online social media (e.g., weblogs, social network services), it is also important to understand consumer‟s media use and social communication in online shopping. Papacharissi and Rubin (2000) examined interpersonal, media, and new technology motives and found five computer-user CMC motives for using the Internet: interpersonal utility, passing time, information seeking, convenience, and entertainment. Flanagin and Metzger (2001) classified ten motive clusters for people‟s Internet use including information, learning, playing, leisure, persuasion, social bonding, relationship maintenance, problem solving, status, and insight. Ray (2007) investigated why people make use of CMC via social networking websites and examined people‟s motivations of CMC; motivations include entertainment, information, and social utility. Also, Nadjm (2007) found several reasons why people use social networking websites, such as to be popular, make friends, exchange information, self-improvement, entertainment, belonging to a group, etc. Based on motivation literatures for online shopping and for social networking (summarized in Table 1), we categorize social shopping orientations or motivations into two key motive dimensions: information-oriented and socially-oriented motives. For example, consumers‟ motivations to use social shopping occur when they need product information and when they need social interaction to assist them in reducing risk and uncertainty in their purchase decisions. 19 Table 1. Classification of Social Shopping Motives Motives Studies Parsons (2002) Informationoriented motives  learning about new trends Online shopping studies Rohm and  information Swaminathan seeking (2004) Online social media use studies Socially-oriented motives  social experiences outside the home  communication with others who have a similar interest  peer group attraction  social interaction Papacharissi and Rubin (2000) Flanagin and Metzger (2001)  information seeking  interpersonal utility  information, learning  social bonding  relationship maintenance Ray (2007) Nadjm (2007)  information  to exchange information  social utility  to make friends  to belong to a group Other motives diversion, selfgratification, status/authority shopping convenience, immediate possession, retail shopping experience, variety seeking pass time, convenience, entertainment playing, leisure, persuasion, problem solving, status, and insight entertainment to be popular, selfimprovement, entertainment It is essential to know what consumers pay attention to, relative to the shopping benefits and values, before we can understand purchase intentions; what do consumers want from their social shopping experience? What factors are important in their judgments of perceived social shopping value? The Theory of Value explains the value-based shopping activity of decision makers, that is, what a consumer tries to achieve from a shopping experience (Babin, Darden, & Griffin, 1994). Consumers are motivated and engage in on-going information search to build an information bank and to have fun (Hirschman & Wallendorf, 1982; Punj & Staelin, 1983). The understanding of the shopping experience from both utilitarian and hedonic shopping value is 20 emphasized by many researchers (Holbrook & Hirschman, 1982; Tauber, 1972; Westbrook & Black, 1985). Most consumers are looking for more than utilitarian shopping value, such as simply price savings, time savings, and convenience. Instead of defining motivation to shop only as a function of buying, the role of hedonic and social shopping values is also recognized. In response to the information-oriented and socially-oriented motivations, we can break down consumer shopping value with respect to their shopping experience into utilitarian and hedonic dimensions. The utilitarian aspect of consumer behavior is directed toward satisfying a functional or economic need and shopping is related to a task oriented, rational, deliberate, and efficient activity (Babin et al., 1994). Perceived utilitarian shopping value depends on whether the particular consumption need that stimulated the shopping trip was accomplished; this means a product is purchased in a deliberate and efficient manner. In contrast, the hedonic aspect of shopping is viewed as a positive experience where consumers enjoy a shopping activity, regardless of whether or not they make a purchase (Holbrook & Hirschman, 1982). Hedonic shopping value is more subjective and personal than its utilitarian counterpart and results from fun and entertainment as opposed to task completion. Therefore, hedonic value reflects the potential entertainment and emotional appeal of the shopping experience. Information-oriented motives and utilitarian value perceptions Purchase decision issues include how much consumers know about the product or service when they decide to make a purchase, the reasons for seeking consumer information, and how consumers obtain the information. The relationships between consumer motives and information search behavior are examined comprehensively in consumer behavior literature 21 (Bloch, Sherrell, & Ridgway, 1986). According to Punj and Staelin (1983), the consumer's motive for pre-purchase information search is to enhance the quality of the purchase outcome. Flynn, Goldsmith, and Eastman (1996) and Goldsmith and Horowitz (2006) describe that consumers seek information or opinions to reduce perceived risk and increase the likelihood for success of the product choice. For example, consumers enter an online group and ask advice about products to enhance their understanding of products. Arnold and Reynolds (2003) considered idea shopping as a way to keep up with product information and available trends. Idea shopping is grounded in McGuire‟s (1974) theory that explains the human need for external guidelines and information for structure, order, and knowledge that help the individual to make sense for himself. Consumers‟ dependency on the Internet for information search is growing. Because the Internet is perceived as a powerful tool for consumer information search in a manner that minimizes the transaction costs of providing and accessing information, online information search is a part of interactive consumer behavior (Klein, 1998; Liang & Huang, 1998; Porter, 2001). Online shopping offers an infrastructure by which the consumer is able to search, compare, and access information much more easily and at deeper levels than within the offline retail structure (Alba, Lynch, Weitz, & Janiszewski, 1997). This concept of information as adding value to the retail experience is supported by Hoffman and Novak (1996), who suggest that the hypermedia computer-mediated environment on the Internet offers not only a wide variety of information, it offers the capability to deliver specific information tailored to the needs of the consumer. Due to the interactive medium of the Internet, consumers can easily obtain information from others‟ experiences with a product or service by using information sources, such as online 22 communities and chat rooms. Consumers search for information, in order to make a judgment, and they rely on so called „hard data‟ provided by retailers or manufacturers or so called „soft data‟ provided by their own experiences or comments from friends and families (Bei, Chen, & Widdows, 2004). In social shopping, obtaining the „soft data‟ from CGC is a key informationoriented motive. According to Klein (1998), consumers seek product information about search products, for which they can acquire information prior to purchase and about experience products, for which they cannot evaluate attributes until they purchase and use the product. Information search related to search products can be easily obtained through product attributes (e.g., styles, specifications, sizes, and functions), but information search related to experience products can hardly be obtained through product attribute descriptions (e.g., taste, texture, fit). Thus, the recommendations or reviews of others are more widely used for experience products rather than for search products. Consumers are more likely to pay attention to the shopping benefits and values that lead to efficient and rational purchases, where shoppers can study what others have to say and contribute their own thoughts. So, seeking online information, opinions, or referring to product lists and recommendations created by other people who have purchased and used the product, provides benefits to consumers, such as retrieval time reduction, unveiling of new preferences, extension of recommendation lists, and interactive feedback (Smith, Menon, & Sivakumar, 2005). According to Stell and Paden (1999), motivations of observational (vicarious) shopping exploration are to satisfy curiosity or to get accurate product knowledge. They found that consumers engage in online shopping activity to increase stimulation, satisfy their curiosity, or learn about products. Thus, in social shopping, consumers are likely to access, search, identify, and acquire information from CGC to stay/become informed about products and trends before 23 making a purchase decision. Social shopping can provide an efficient and satisfying functional shopping experience. When the consumers are conscientious about information gathering, they are likely to perceive utilitarian values related to social shopping. So, we propose the following hypothesis. Hypothesis 1: Consumers‟ information-oriented motives will positively influence their utilitarian value perceptions in social shopping. Socially-oriented motives and hedonic value perceptions Studies on consumers‟ motivations for shopping identified that friends or family provide information that helps consumers reduce risk and uncertainty and increase confidence in their decisions (Hartman & Kiecker, 1991; Kiecker & Hartman, 1993). These studies found social motivations for shopping with friends (e.g., for fun, enjoyment), suggesting that consumers accompany friends on their shopping trips to assist them with their onsite purchase decisions and enjoy a shopping activity. Stell and Paden (1999) found that consumers engage in observational (vicarious) shopping activity to recreate and socialize with others. Arnold and Reynolds (2003) indicate that many people treasure the time spent shopping with friends or family members, and also enjoy social activities while shopping. Thus, shopping with friends during information search can provide pleasurable and satisfying shopping experience that contributes to consumer decision making (Bearden, Hardesty, & Rose, 2001). As consumers have an increasing variety of ways to share information and feelings about products and services (e.g., blogs, forums, online communities, newsgroups, chat rooms, review sites, and social networking sites), the concept of offline social interaction or traditional interpersonal communication is extended into the newer realm of cyberspace. The power of social networking is that it offers a place for social interaction and allows social shopping that 24 moves online shopping to an online social activity. Consumers seek advice from other consumers and place a great deal of importance on the entertainment and emotional appeal of the shopping experience found where shoppers can browse around (Cohn & Park, 2007; Rhone, 2007). In our social shopping study, the following motives encourage consumers to shop online with others to share information and enjoy shopping: online social experience (e.g., seeking new acquaintances or people watching), communication with others having similar tastes, consulting product recommendations, and peer group or reference group influence. We expect that consumers who are highly motivated to shop online with others are likely to perceive hedonic values related to social shopping. Therefore, the following hypothesis is provided. Hypothesis 2: Consumers‟ socially-oriented motives will positively influence their hedonic value perceptions in social shopping. Credibility of Social Shopping Resource and Attention to Social Shopping "You may have heard that 'knowledge is power,' or that information, the raw material of knowledge, is power. But the truth is that only some information is power: reliable information" (Harris, 2007). Information serves as the basis for beliefs, decisions, and choices. For example, if we make a purchase decision based on inaccurate or unreliable information, we lack power and cannot avoid regret after purchase. As the web has become an increasingly rich information resource, gaining competitive advantage through high quality web content also has become an important topic (Flanagin & Metzger, 2007; Metzger & Flanagin, 2008; Metzger, Flanagin, Eyal, Lemus, & McCann, 2003; Rieh & Danielson, 2007). Therefore, it is essential to understand how to establish online information quality and to assure web users that online information is credible. Credibility refers to the believability of a source or message (Flanagin & Metzger, 2008). Although the concept of credibility is closely related to several concepts, including trust, 25 reliability, accuracy, reputation, quality, authority, and competence, these concepts can be classified in two core dimensions of credibility: expertise dimension (e.g., quality, accuracy, authority, competence) and trustworthiness dimension (e.g., reputation, reliability, trust) (Flanagin & Metzger, 2008). In our study, we identify two social shopping information resources that affect social shopping perceptions and attitudes: intellectual capital (expertise dimension) and social capital (trustworthiness dimension). The information resource credibility depends on the believability of the information contained in the shopping resource and influences consumers‟ perceptions of the outcomes resulting from using the resource. Chiou and Cheng (2003) found that favorable message levels through reliable and accurate social information, consisting of comments and observations made by other people, impacted consumers‟ brand image evaluation positively. Smith, Menon, and Sivakumar (2003) investigated the influence of peer recommendations on decision making and found two important factors, recommender expertise and rapport with the recommender which explain that consumers are more likely to rely on recommenders with expertise and close/similar tastes as a knowledgeable and trustworthy source when seeking product information. So, the credibility of social shopping resources accumulated in CGC and social group relationships is a fundamental driver that may reduce uncertainty and influence consumers‟ perceptions about social shopping and subsequent decision-making. Intellectual capital credibility and utilitarian value perceptions Intellectual capital is an intangible asset that comprises the intellect or brain-power about products and services and can be employed for consumer buying decisions. Stewart (1997) defines intellectual capital as the capacity of individuals to provide solutions and states that a 26 company and its customers can jointly create a body of intellectual capital. For example, a company creates a website which can assist its customers; also the customers can contact and help one another. Because a considerable amount of online assistance is carried out by consumers while social shopping, intellectual capital can be formed in an information rich environment and can reduce uncertainty related to consumer decision making. Fogg and colleagues examined web users to investigate the elements that affect their judgments of web credibility (Fogg et al., 2000). They found that real-world feel, ease of use, expertise, trustworthiness, and message tailoring positively influence web credibility. Therefore, social shoppers can perceive credible intellectual capital when other consumers‟ reviews or recommendations about the product provide relevant, accurate, clear, and knowledgeable product research and shopping information. According to Tam and Ho (2006), personalized recommender systems reduce customer‟s search effort. They found that recommender system users exposed to relevant web content sought less information and spent less time on decision making. Also when personalized systems provided more accurate recommendations, user satisfaction increased (Liang, Lai, & Ku, 2007). Thus, consumers‟ perceived increased usefulness of, trust in, and adoption of the systems (AlNatour, Benbasat, & Cenfetelli, 2008). Thus, In our study, when the consumer‟s credibility perceptions of intellectual capital (i.e., relevance, expertise, and clarity of CGC) are positive, the consumer‟s utilitarian value perceptions of social shopping in decision making is more likely positive. Therefore, we hypothesize the following: Hypothesis 3: Consumers‟ perceived credibility of intellectual capital will positively influence their perceived utilitarian value of social shopping. 27 Social capital credibility and hedonic value perceptions Social capital refers to social networks that may provide access to resources and social support ("Social capital," 2003). Etzioni (1996) defines social capital as an intangible force that helps to bind society together by transforming self-seeking individuals into members of a community with shared interests, and shared assumptions about social relations. Social capital may satisfy social needs and bear a social potentiality sufficient to acquire the advantages of community assistance. Based on Putnam‟s (2000) concepts of social capital, there are two types of relationships within the social network that can be used to estimate the value of social capital: bridging and bonding. First, bridging social capital relationships are inclusive and they occur when individuals from different backgrounds make connections between social networks (Putnam, 2000). These individuals (e.g., acquaintances and relative strangers) often have only tentative relationships, but what they lack in depth they make up for in breadth (weak-tie networks). Consequently, bridging may broaden social horizons or world views, or open up opportunities for information or new resources. However, bridging relationships may provide little emotional support such as trusting others to help solve problems, having someone to turn to for advice, and having someone to go to with intimate personal problems (Williams, 2006). Second, bonding social capital relationships can be exclusive and they occur when strongly tied individuals, such as family and close friends, provide emotional support for one another (Putnam, 2000). The individuals with bonding social capital relationships have little diversity in their backgrounds but have stronger personal connections (strong-tie networks). The continued reciprocity found in bonding relationships provides strong emotional support (Williams, 2006). While weaker ties lead to more people in different life situations and thus to a 28 broader set of information and opportunities, those people in strong-tie networks are likely to offer emotional support. Thus, consumers may receive benefit from supporting computermediated weak-tie and strong-tie connections. According to Wang & Benbasat (2007), social presence, interaction with a social group in an online environment, influences the way individuals perceive a medium and individuals from whom they receive messages and communications; social media allows users to establish personal connections with other users. Specifically, social presence is linked with intimacy and immediacy; intimacy indicates how close a web user feels to similar users and immediacy represents the degree of psychological distance between a user and other similar users (Wang, Baker, Wagner, & Wakefield, 2007). Kim, Baker, and Song (2007) found that social presence increases acceptance of and trust in recommendation systems among online consumers when they feel more comfortable with and similar to other users. In addition, the social interaction enhances the hedonic value of using computer-mediated social network sites (Thambusamy, Church, Nemati, & Barrick, 2010). In our study, social shoppers could share information and shopping experiences with those who have the same interests online. Online experience could also become the subject of conversations to give a social shopper pleasure. When the consumer‟s credibility perceptions of bridging and bonding social capital in shopping knowledge sharing are positive, the consumer‟s perceived hedonic value of social shopping in decision-making is more likely positive. Thus, we formulate the following hypotheses. Hypothesis 4: Consumers‟ perceived credibility of social capital will positively influence their perceived hedonic value of social shopping. 29 Attention to Social Shopping and Memory of Social Shopper According to SLT, memory explains an ability of people to remember and produce a level of learning (Bandura, 1997). The consumers who consider themselves capable in and assured of their shopping decisions have a low level of uncertainty about the decisions. If consumers feel too much uncertainty in online transactions, they are reluctant to make purchases from online retailers. Thus, researchers identified that self-confidence (often referred to as selfefficacy) is related to anxiety-, risk-, and uncertainty-reducing strategies (Hartman & Kiecker, 1991; Kiecker & Hartman, 1993; Mangleburg, Doney, & Bristol, 2004; Paridon, 2005). Perceived self-efficacy is an affirmation of a capability level and the strength of one‟s confidence level (Bandura, 1997). Barbalet (1998) refers to self-efficacy as a person‟s judgment about a future event or a belief in a person‟s own ability (i.e., self-confidence). The feeling of confidence in one‟s own ability is characterized as essential for any behavior to take place, because this belief serves as a form of self-assurance. Bearden et al. (2001) defined the concept of consumer self-confidence as “the extent to which an individual feels capable and assured with respect to his or her marketplace decisions and behaviors” (p.122). Mallalieu and Palan (2006) found that people perceive shopping competence as a multi-faceted construct composed of effectively utilizing environmental resources, having and using knowledge related to shopping, and possessing a degree of self-confidence. Thus, consumer self-confidence is an important research stream and attempts to understand and improve consumer performance through knowledge of how marketplace information is obtained, analyzed, and used to make purchase decisions (Bettman, Johnson, & Payne, 1991; Park, Whan, Mothersbaugh, & Feick, 1994). Creating and strengthening people‟s beliefs about their efficacy can be developed by the following sources of influence: mastery experiences, the vicarious experiences provided by 30 social models, social persuasion, and positive mood (Bandura, 1986; Staples, Hulland, & Higgins, 1998). Specifically, the way of self-efficacy building through observational learning experiences by modeling can generate expectations in observers that they can improve their own performance by learning from what they have observed. People seek proficient models that possess the competencies to which they aspire. Through their behavior and expressed ways of thinking, competent models transmit knowledge and teach observers effective skills and strategies for managing environmental demands. Self-efficacy building through social persuasion can influence self-efficacy judgments. Through suggestion or feedback on performance, people are led into believing that they can cope successfully with a specific task. Perceived values and perceived self-efficacy During social shopping, if a consumer gets decision support from other consumers‟ reviews for the product he or she intends to buy, utilitarian and/or hedonic values could be found in that shopping experience. That is, utilitarian value is present because of the efficiency and usefulness of the product information acquisition during social shopping, while hedonic value comes from the excitement and enjoyment caused by social interaction and communications with others having similar interests. Consumers can increase confidence to form and reinforce their purchase intention when they perceive a significant shopping value from observational learning. In our study, consumers who positively perceive the values of social shopping will perceive a higher self-efficacy. Thus, we develop the following hypotheses. Hypothesis 5: Consumers‟ perceived utilitarian values will positively influence their perceived self-efficacy. Hypothesis 6: Consumers‟ perceived hedonic values will positively influence their perceived self-efficacy. 31 Attention to Social Shopper and Social Shopper’s Behavior Perceived values and purchase intentions Consumers tend to change their behavior through learning. For instance, consumers who had a bad experience with a restaurant are likely to avoid the restaurant and they also avoid restaurants with negative reviews or found to be very crowded (Voight, 2007). Empirical results support such a perspective by demonstrating that perceived value leads to purchase intention (Chu & Lu, 2007; Dodds, Monroe, & Grewal, 1991) and the spread of information via word of mouth (Babin, Lee, Kim, & Griffin, 2005; Pihlström & Brush, 2008). Powered by email, weblogs, chat rooms, and discussion boards, online social communication will help consumers share interests, experiences, and ideas in the shopping and purchase process. Then, consumers will organize their shopping behavior through social learning. Online WOM or “Word-of-Mouse” (online version of WOM) activities are becoming increasingly important to retailers. Compared to traditional WOM, online WOM is more influential due to its speed, convenience, one-to-many reach, and its absence of face-to-face human pressure (Phelps, Lewis, Mobilio, Perry, & Raman, 2004). Typical WOM communication consists of spoken words exchanged with someone else in a face-to-face situation, while online WOM involves transmitting personal experiences and opinions through the written word (e.g., text messages, web dialogue, blog, email) (Bickart & Schindler, 2001). An advantage of the written word is that people can seek information at their own pace and within their own time frame (Bickart & Schindler, 2001). According to Marshall McLuhan, as cited in Griffin (2003), writing may transmit the information in a more intact manner and make the information appear more formal. 32 A few studies examine the antecedents and consequences of consumer‟s online WOM activities. Brown, Barry, Dacin, and Gunst (2005) found that consumers' satisfaction with purchasing experiences impacts consumer commitment and positive WOM intentions and/or WOM behaviors. Sun, Youn, Wu, and Kuntaraporn (2006) identified significant predictors (e.g., innovativeness, Internet usage, and Internet social connection) and consequences (e.g., online forwarding and chatting) of online WOM in the context of music-related communication. Also, people share feelings and information (i.e., opinion acceptance, interaction intentions, and WOM intentions) after reading online forum blogs (Huang, chou, & Lin, 2008). Huang et al. (2008) find affective exchange (e.g., socially-oriented motive) and bandwagon effect (e.g., best sellers, top-rated products) positively influence interaction intentions (e.g., I would like to participate in activities held by bloggers) and WOM intentions (e.g., I would recommend good blogs to my friends and I would forward some interesting articles on blogs to my friends). Usually WOM communication is explored in terms of the opinion leadership and opinion seeking process. Opinion leadership and opinion seeking are integral to the construct of WOM (Flynn et al., 1996) and signal purchase intentions (Bellman, Lohse, & Johnson, 1999; Fong & Burton, 2006). In our study, consumers who positively perceive the values of social shopping will more likely demonstrate behavioral purchase intentions. And an active consumer who willingly participates in WOM activities is one who is buying. Thus, we develop the following hypotheses. Hypothesis 7: Consumers‟ perceived utilitarian values will positively influence their (a) online WOM intentions and (b) purchase intentions. Hypothesis 8: Consumers‟ perceived hedonic values will positively influence their (a) online WOM intentions and (b) purchase intentions. Hypothesis 9: Consumers‟ online WOM intentions will positively influence purchase intentions. 33 Memory of Social Shopper and Social Shopper’s Behavior Perceived self-efficacy and purchase intentions Bandura (1997) states that self-efficacy is the most important precondition for behavioral change, since it determines the initiation of coping behavior. Ajzen (2002) proposed that a behavior is a function of compatible intentions and perceptions of behavioral control (conceptually related to self-efficacy) in that perceived behavioral control is expected to moderate the effect of intention on behavior, such that a favorable intention produces the behavior only when perceived behavioral control is strong. Consistent with the Theory of Planned Behavior (TPB) (Ajzen, 1985), Liaw‟s (2002) study found that Web self-efficacy (a perceived behavioral control element) predicts Internet users‟ behavior intention. In the context of explaining consumer intention to use online shopping, Kim and Kim (2005) refined self-efficacy to online transaction self-efficacy as the belief of an individual in his or her ability to organize and execute certain behaviors necessary for the consumer to achieve certain objectives in online purchasing (e.g., a successful and satisfactory transaction) under uncertainty. Also, prior research shows that self-efficacy or self-confidence increases one‟s WOM communication (Reynolds & Darden, 1971) and one‟s information sharing behavior (Holbrook & Hirschman, 1982). Consumers who are highly confident about their purchase and other shopping related decisions are likely to purchase products and initiate discussions with other consumers and respond to requests from other consumers for market information. Therefore, consumers who possess a high level of self-efficacy about their shopping related decisions are likely to have purchase intentions and WOM intentions. Therefore, we hypothesize the following: Hypothesis 10: Consumers‟ perceived self-efficacy will positively influence (a) online WOM intentions and (b) purchase intentions. 34 Figure 4 depicts the proposed hypotheses of the overall relationships between information- and socially-oriented motives, perceived credibilities of intellectual and social capital, perceived utilitarian and hedonic values, perceived self-efficacy, online WOM intention, and purchase intention. Figure 4. Proposed Hypotheses Social Shopping Motivation Information -oriented Motives Socially -oriented Motives Social Shopping Attention Social Shopper‟s Memory Perceived Utilitarian Value Social Shopper‟s Behavior +H7a +H1 +H7b +H5 +H10a +H2 Perceived Self-efficacy Intellectual Capital Credibility Social Capital Credibility Online WOM Intention +H9 +H3 +H6 +H10b +H8a Perceived Hedonic Value +H8b +H4 Social Shopping Resource Credibility 35 Purchase Intention CHAPTER III RESEARCH METHODS In this section, we discuss sample selection and data collection procedures, followed by the questionnaire items that measure each construct of the proposed model. Finally, we present data analysis methods and procedures to test the proposed model and hypotheses. Data Collection and Sampling Procedures We apply online survey research methods to this study of online behavior and Internet use. We presume the key advantages of Internet-based methodologies, which are good coverage, good speed, and low cost (Duffy, Smith, Terhanian, & Bremer, 2005). The advantages for online surveys can be considerable as it is possible to accumulate very large volumes of data in a short span of time. Regarding the use of new technology, other advantages include that online surveys allow research to be more visual, flexible, and interactive (Taylor, 2000). Of course, online survey research methods have several disadvantages, one of which is online survey sampling issues. Unlike face-to-face surveys, which can be sampled from reasonably comprehensive databases, online surveys are most often conducted among respondents from a panel who have agreed to be contacted for market research (Duffy et al., 2005). No simple database of everyone who is online exists. According to Terhanian (2003), there are three major sampling issues relating to coverage bias or selection error: first, online surveys can reach only those who are online; second, they can reach only those who agree to become part of the panel; and, third, not all those who are invited respond. Despite these limitations, we chose an online survey research 36 method after careful consideration of our research circumstances and developing approaches that are as robust and representative as possible. We used Zoomerang.com, a firm that specializes in online marketing research to collect data for this study. The survey was conducted on a private website administered by the company. A sample of respondents, drawn from the company‟s online panel, was invited by email to participate in the survey. The panel members were recruited by online ads or posts (See Figure 5) and participated voluntarily. Thus, the online survey panel is tailored to meet our specific needs, offering unsurpassed profiling breadth and depth so we can quickly and easily reach our target survey panel. The population for this study is a social shopper who likes to shop online with family or friends who help him/her make good decisions. Online consumers who join web communities, such as Facebook, MySpace, etc., frequently ask questions and request information and knowhow. They are also willing to invest considerable time and effort, themselves, to provide knowledge and valuable insights to others. Our screening process invited social shoppers or consumers who joined a web community or online social networking to search for and share information about a product or a service. The ads or posts included a survey invitation with a short description of the research, information about confidentiality (See Appendix A), and a link to the websurvey. For completing our survey, participants received an incentive (i.e., 50 ZoomPoints) from Zoomerang market research firm. 37 Figure 5. Recruitment Advertising/Web Greeting Do you ever search for or share information on hot deals, sales info, reviews or recommendations with people online? You are invited to be in a research study on social shopping behavior. We need your help to trace online consumer trends. Please respond to the survey. Before beginning the survey, we ask that you read a consent form. Clicking the Start Survey button confirms that you have read and agree with the consent form and would like to continue to take the survey. Start Surv ey ! Measures All of the measures we used were developed and tested in previous studies. The competing measures for each construct were carefully studied and compared. Based on the validity and reliability of the measures in the original study and our own pretest, best appropriate measures were selected for our study. Some adaptations were made to items to make them applicable to social shopping environment. The first part of the survey asked participants to respond to questions about their regular social shopping activity. The second part of the survey asked questions relating to the respondent‟s motivations, perceptions, and behavioral intentions of social shopping. Demographic information was gathered in the final part of the survey. Information-oriented motives Research suggests that one of the primary motives for using the Internet is information seeking (Papacharissi & Rubin, 2000). Patwardhan and Ramaprasad (2005) measured 38 information-oriented motives with eight pre-purchase search items (Cronbach‟s alpha = .93). We adopted seven of eight pre-purchase search items from Patwardhan and Ramaprasad (2005) and developed three items based on the literature to extend the measure to ten items applicable to information search using other consumers‟ reviews or recommendations. Participants indicated the likelihood that they would seek social shopping to search/share reviews and recommendations with others about a product, a service, or a company on the Internet in the following types of situations: to check out the best deals, to look for product information that is specific to my requirements, etc. To be consistent with other scales used in this study, we modified the 5-point Likert scale to a 7-point Likert scale (1=”very unlikely” to 7=”very likely”). Socially-oriented motives With the growing importance of social interaction on the Internet in today‟s retail environment, researchers measure socially-oriented motives. The desire to get connected and share ideas with others is identified as the dominant motivation for sending pass-along emails (Phelps et al., 2004). Individuals who engage in online WOM communication would have a strong desire to fulfill social needs and experience a sense of virtual community (LaRose, Lai, Lange, Love, & Wu, 2005). Arnold and Reynolds‟s (2003) measure of social shopping motives included enjoyment of shopping with friends and family, shopping with friends and family as a social occasion, and socializing and bonding with others while shopping. We modified four items (Cronbach‟s alpha=.85) from Arnold and Reynolds (2003) and add six items based on Tauber‟s (1972) social motive statements for a total of ten items, measuring social shopping motives. Participants indicated on a 7-point Likert scale (1=”very unlikely” to 7=”very likely”) how likely it is that 39 they would seek social shopping to search/share reviews and recommendations with others about a product, a service, or a company on the Internet in the following situations: to enjoy socializing with others when I shop online, to communicate with other people who share similar shopping experiences, etc. Perceived credibility of intellectual capital There is no single appropriate indicator of credibility. To assess credibility, we developed a second-order factor and tested whether a set of social shopping resources (i.e., CGC relevance, clarity, and expertise) load on an overall construct that was termed “perceived credibility of intellectual capital.” We adopted five items from Mishra, Umesh, and Stem‟s (1993) information relevance scale (Cronbach‟s alpha=.94) to measure the perception of CGC relevance. Originally, the scale measured the relevance of information related to alternative products as part of a decision task, using a seven-point summated rating scale. To evaluate the perception of CGC clarity, we used 5C criteria (i.e., clear, correct/accurate, concise, complete, consistent) for assessing information quality of communication (Claxton & McDougall, 2000). To measure a consumer‟s assessment of a specified person‟s expertise as a source of information about a particular product, we used four items from Netermeyer and Bearden‟s (1992) expertise of an information source scale (Cronbach‟s alpha=.94). The original scale used a seven-point semantic differential scale. To be consistent with other scales, we modified the original response format to a 7-point Likert type scale for the fourteen intellectual capital items (1="strongly disagree" to 7="strongly agree"). Respondents indicated their view of the product information they received when they are in a social shopping environment. For example, one item measuring perception of CGC 40 relevance asked the respondents to indicate their level of agreement with the following statement: I consider other consumers‟ reviews or recommendations provided in a social shopping environment to be meaningful. One example of a CGC clarity item was the following statement: I consider other consumers‟ reviews or recommendations provided in a social shopping environment to be concise. An item measuring of the expertise of the CGC provider in a social shopping environment is the following statement: I consider other consumers who provide information to be knowledgeable. Perceived credibility of social capital The credibility perception of social capital was evaluated by a second-order factor. It tested whether a set of social shopping resources (i.e., bridging and bonding) load on an overall construct that was termed “perceived credibility of social capital.” Five of ten items from Williams‟s (2006) online bridging scale (Cronbach‟s alpha= .90) by were used for the study. The five items excluded were specifically designed for the original study and not applicable to our study. We adapted the items to the social shopping context. Participants indicated the response that reflected their view of the interaction relationship between people in a social shopping environment. For example, they were asked to respond the following statement: Searching/sharing product information with others gives me new people to talk to. To measure the credibility perception of online bonding social capital, we used three items (Cronbach‟s alpha= .84) from Williams‟s (2006) ten bonding scale items as appropriate for our study. The concept was measured by questions about whether or not people trust others to help them solve problems, have someone to turn to for advice, and have someone to go to with personal problems in a social shopping environment. All items from Williams (2006) were a 5- 41 point response format. So to be consistent with other scales used in our study, we modified the 5point Likert scale to a 7-point Likert scale. Perceived social shopping value According to Woodruff and Gardial (1996), customer perceived values are the customers‟ perceptions of what they want to have happen in a specific kind of use situation and to accomplish a desired purpose or goal. To measure perceived utilitarian values of social shopping, we used nine items of Wang and Benbasat‟s (2005) perceived usefulness of virtual advisor measure (Cronbach‟s alpha= .90) and we used four hedonic shopping value items (Cronbach‟s alpha= .85) from Paridon (2005). Perceived values were measured by asking the respondents to indicate their level of agreement with items, such as the following: using other consumers‟ reviews or recommendations as shopping advice enhance my effectiveness in finding suitable products; using other consumers‟ reviews or recommendations as shopping advice is truly a joy. We used a 7-point Likert scale (1="strongly disagree" to 7="strongly agree") was used as a response format. Perceived self-efficacy Self-efficacy is commonly understood as being very specific; that is, one can have more or less firm self-beliefs in different domains or particular situations. Social shopping self-efficacy perception describes individuals' judgments of their ability to shop online to reduce uncertainty/risk and achieve good-quality decision-making. We used Widing and Talarzyk‟s (1993) three perceived self-efficacy items to measure perception of the decision quality (i.e., accuracy, certainty, and confidence) using electronic decision aids (Cronbach‟s alpha= .81). The 42 scales were modified appropriately to the social shopping situation. For example, perceived selfefficacy was measured by asking the respondents to indicate how their feeling of using other consumers‟ reviews and recommendations as shopping advice affects the accuracy of their decisions (1=”greatly decreased decision accuracy” to 7=”greatly improved decision accuracy”). Online WOM intention We examined behavioral intentions to include online WOM intention and purchase intention as a consequence/outcome of social shopping. To measure online WOM intention, we adapted four out of six items of an online forwarding scale (Cronbach‟s alpha= .89) and four out of five items of an online chatting scale (Cronbach‟s alpha= .91) from Sun et al. (2006) as appropriate for our study. Online WOM intention was measured by asking the respondents to indicate the level of agreement or disagreement with statements about information sharing related to interesting products or shopping experiences with others while social shopping online (1="strongly disagree" to 7="strongly agree"). Purchase intention To measure purchase intention as an outcome of social shopping, we used and modified two of five willingness to buy items from Dodds et al. (1991) (Cronbach‟s alpha= .96). We developed and included five more items: three items for in-store purchase intention and two items for placing a product in an online shopping basket or wish list which remains there until a consumer purchases or removes the item. Participants indicated their level of agreement or disagreement of a purchase intention for a product that was reviewed, rated, or recommended by other consumers while social shopping online (1="strongly disagree" to 7="strongly agree"). 43 Based on the measurement specifications, the measurement model was proposed (See Figure 6). Figure 6. Proposed Structural Equation Model for Measurement d1 Information -oriented Motives Perceived Utilitarian Value Socially -oriented Motives d3 Expertise Bridging Bonding Intellectual Capital Credibility Social Capital Credibility Online WOM Intention 1 Perceived Self-efficacy Relevance Clarity d4 Perceived Hedonic Value d2 44 Purchase Intention d5 CHAPTER IV RESULTS OF ANALYSES We present research findings from statistical analysis of the collected data and to interpret and discuss the findings in this chapter. First, we discuss sample characteristics and preliminary analyses. We conducted factor analysis in preliminary analyses before assessing the reliabilities of constructs. Following the recommendations by Anderson and Gerbing (1988), we used a two-step approach to structural equation modeling. The first step, CFA was employed to evaluate the reliability and validity of the measures. In the second step, we tested the proposed hypotheses with structural equation modeling methods. Finally, a discussion of findings concludes this chapter. Demographic Characteristics of the Sample Online consumer panel members from Zoomerang market research were invited to participate in the research survey. Six hundred twenty five panel members participated and were asked to answer a pre-screening question (“Have you ever searched for or shared hot deals, sales information, reviews or recommendations with others about a product, a service, or a company on the Internet?”). Four hundred three respondents answered “Yes” to the screening question and completed the survey, yielding a response rate of 64.5%. Frequency statistics provided sample characteristics of the study (See Table 2). Total sample demographics indicate that the majority (73.8%) of the respondents are aged 31 to 60. More males (51.2%) than females responded and over half of the sample was married (55.4%). 45 About 76% of the respondents were White/Caucasian, followed by Asian/Pacific Islander (7.4%), Black/African-American (6.0%), and Hispanic/Latino(a) (4.2%). 35% of the respondents hold a bachelor‟s degree and nearly 70% had a college/university degree or higher educational background; respondents with a high school degree or below constituted only about 10% of the sample. 44% of the sample reported that their annual household income was $50,000 or below and 56% had an annual income of $50,001 and above. According to U.S. Census Bureau‟s national statistics for Internet usage, 45-to-64-yearolds made up the largest group of affluent Internet users, in terms of age ("Current Population Survey", 2009). Next highest in number were 18-to-34-year-olds, followed by older users. For the Internet usage by race and ethnicity, Whites and Asians led all other groups, followed by a grouping of Black, Native Americans, and Hispanics. About 55% of the users over 25 years had some college degree of higher education. Users‟ income ranged from the highest percentages by those persons who are most affluent (with annual households income of at least $150,000) to the lowest percentages by those with $15,000 annual households income or less ("Current Population Survey", 2009). Thus, compared to the general population of Internet use in the U.S., our sample has a slightly higher education level and a lower income. 46 Table 2. Demographic Characteristics of the Sample Characteristics Age Gender Marital Status Ethnicity Education Income Frequency Valid % 18~20 21~30 31~40 41~50 51~60 61~70 ≥71 Male Female Single Married Divorced/Separated Widowed Other White/Caucasian Black/African-American Hispanic/Latino(a) Asian/Pacific Islander Other Less than high school High school/GED Some college 2-year college degree (Associates) 4-year college degree (BA, BS) Master‟s degree Doctoral degree Professional degree (MD, JD) Other ≤ $10,000 $10,001 ~$ 20,000 $20,001 ~$ 30,000 $30,001 ~$ 40,000 $40,001 ~$ 50,000 $50,001 ~$ 60,000 $60,001 ~$ 70,000 $70,001 ~$ 80,000 $80,001 ~$ 90,000 $90,001 ~$ 100,000 ≥ $100,001 47 1 62 118 85 77 26 10 197 188 103 216 52 11 8 306 24 17 30 9 4 36 79 45 138 55 14 15 4 12 18 33 50 41 24 26 38 17 33 59 0.3 16.4 31.1 22.4 20.3 6.9 2.6 51.2 48.8 26.4 55.4 13.3 2.8 2.1 75.9 6.0 4.2 7.4 2.2 1.0 9.2 20.3 11.5 35.4 14.1 3.6 3.8 1.0 3.4 5.1 9.4 14.2 11.7 6.8 7.4 10.8 4.8 9.4 16.8 In addition to the sample‟s demographic characteristics, frequency statistics provide an overview of participants‟ information seeking behavior including the sample‟s involvement and activity in searching for or sharing information with others on hot deals, sales info, reviews or recommendations about a product, a service, or a company on the Internet (See Appendix C). From these findings, we can describe social shoppers and how they behave when shopping. Their average interest in searching/sharing information was 5.4 (most of the time) and the mean of their information search/sharing activity was 5.5 (often or most often searched). About 94% of respondents said they „often, most often, or regularly‟ search for or share information at online retailers‟ sites (e.g., Amazon.com, Drugstore.com), followed by consumer review sites (e.g., Epinions.com) (69%), social networking weblogs (e.g., Facebook.com, Twitter.com) (63%), and social shopping sites (e.g., Kaboodle.com) (51%). When participants shop online, they „often, most often, or regularly‟ search for or search reviews or recommendations posted by others at the following situations: shopping for themselves (64%) and shopping for another person (67%). For the question regarding product or service categories, three-quarters of respondents searched for or shared information for electronics, followed by books (60%), computer/computer hardware (58%), restaurants (58%), travel (57%), clothing (54%), computer software (47%), automotives (33%), information goods (e.g., data, newspaper) (25%), insurance (25%), and financial (23%). 48 Preliminary Analyses Most of measures in this study have a large number of observed variables for each latent (unobservable) variable. Before conducting Anderson and Gerbing‟s (1988) two-step approach, we used SPSS 16 to conduct factor analysis to identify a small number of factors that explain most of the variance observed in a much larger number of manifest (observed) variables (See Table 3). In the first factor analysis, all measure latent variables (except two variables: perceived credibility of intellectual capital and perceived credibility of social capital) loaded highly (between .659 and .943) onto one and only one factor. Factor analysis entered fourteen items of perceived credibility of intellectual capital and extracted four factors (five items of relevance, five items of clarity, three items of expertise, and one item (competent) of expertise); the competent item was excluded from further analysis because of the low factor loading. Factor analysis entered eight items of perceived credibility of social capital and extracted two factors (five items of bridging and three items of bonding). These factor extraction results were expected on the basis of pre-established theory as discussed in Chapter 3. As all items had significant loadings, we proceeded to complete the analysis with these factors. After performing factor analysis, the reliability of each multi-item scale was tested using Cronbach‟s alpha coefficient (See Table 3). The results show that high reliabilities (s ranged from .90 to .97) are achieved for all scales. As the widely-accepted social science cut-off for Cronbach‟s alpha is .70 or higher for a set of items in a scale (Nunnally & Bernstein, 1994), the results indicate satisfactory internal consistency. We submitted a total of 72 observed variables to the next step of analysis, CFA. 49 Table 3. Measurement Properties Factor % of α Loading Variance Items Information-oriented Motives I engage in online social shopping… IM1. to check out the best deals. IM2. to search for detailed information about the product/brand category. IM3. to compare several products/brands online before making a decision. IM4. to check out websites for sales and service information. IM5. to look for product information that is specific to my requirements. IM6. to check out company information online for products I would like to buy. IM7. to look for online discounts and bargains. IM8. to hear about something new and learn more about it. IM9. to seek advice and solutions for my problems with a product. IM10. to get a variety of information from people who have positive and negative opinions. Socially-oriented Motives I engage in online social shopping… SM1. to shop online with others as a way to socialize. SM2. to enjoy socializing with others when I shop online. SM3. to shop online with others having a social occasion. SM4. to shop online with others as a way to have a bonding experience. SM5. to shop online with others who have similar tastes/interests. SM6. to shop online with my peer group or reference group. SM7. to communicate with other people who share similar shopping experiences. SM8. to achieve a sense of belonging by shopping for the same products and brands that others purchase. SM9. to observe what others are buying and using. SM10. to purchase those products or brands that I think others will approve of. Perceived Credibility of Intellectual Capital Relevance I consider other consumers‟ reviews or recommendations provided in a social shopping environment to be ________. ICR1. relevant ICR2. meaningful ICR3. important 50 Mean (Std. Dev.) 69.607 .95 5.49 (1.190) 79.523 .97 3.91 (1.506) 82.722 .95 5.33 (1.150) .812 .872 .880 .873 .870 .837 .813 .825 .772 .783 .913 .914 .935 .925 .874 .913 .846 .918 .789 .880 .795 .691 .763 Table 3 (Cont‟d). Measurement Properties ICR4. useful ICR5. helpful Clarity I consider other consumers‟ reviews or recommendations provided in a social shopping environment to be ________. ICC1. clear ICC2. correct/accurate ICC3. concise ICC4. complete ICC5. consistent Expertise I consider other consumers who provide information in a social shopping environment to be ________. ICE1. knowledgeable ICE3. expert ICE4. experienced Excluded item: ICE2. competent Perceived Credibility of Social Capital Bridging In a social shopping environment, searching/sharing product information with others… SCR1. makes me feel like part of a larger community. SCR2. makes me feel connected to the bigger picture. SCR3. reminds me that everyone in the world is connected. SCR4. gives me new people to talk to. SCR5. gives me new people to contact with all the time. Bonding In a social shopping environment, SCO1. there are several people online I trust to help solve my problems. SCO2. there is someone online I can turn to for advice about making very important decisions. SCO3. there is someone online that I feel comfortable talking to about personal problems. Perceived Utilitarian Value Social shopping that provides interactive product information and uses other consumers‟ reviews or recommendations as shopping advice… UV1. enables me to find suitable products more quickly. UV2. improves the quality of analysis and searching I perform to find suitable products. 51 .876 .839 82.155 .95 4.78 (1.228) 83.645 .90 4.85 (1.194) 84.913 .96 4.22 (1.506) 87.413 .93 4.17 (1.524) 79.799 .97 5.13 (1.170) .659 .715 .802 .757 .769 .671 .748 .711 .818 .862 .825 .672 .715 .824 .804 .838 .911 .911 Table 3 (Cont‟d). Measurement Properties UV3. UV4. UV5. UV6. makes the search task for products easier to complete. enhances my effectiveness in finding suitable products. gives me more control over the product search task. allows me to accomplish more analysis than would otherwise have been possible. UV7. greatly enhances the quality of my judgments. UV8. conveniently supports all the various types of analysis needed to find suitable products. UV9. overall, I find reviews or recommendations by other consumers useful in finding suitable products. Perceived Hedonic Value Social shopping that provides interactive product information and uses other consumers‟ reviews or recommendations as shopping advice… HV1. is truly a joy. HV2. truly feels like an escape. HV3. is enjoyable for its own sake, not just for the items I may have purchased. HV4. is a good time because I am able to act on „the spur-of-themoment.‟ Perceived Self-Efficacy SE1. How do you feel the use of other consumers‟ reviews and recommendations as shopping advice affects the accuracy of your decisions? SE2. How do you feel the use of other consumers‟ reviews and recommendations as shopping advice affects the degree of certainty of your decisions? SE3. How do you feel the use of other consumers‟ reviews and recommendations as shopping advice affects the amount of confidence of your decisions? Online Word-of-Mouth Intention While social shopping online, WOM1. I would like to share some information about interesting products or shopping experiences with others. WOM2. I would like to share my favorite products or shopping experiences with others. WOM3. People ask me for my opinions about products and shopping. WOM4. I would like to post reviews or recommendations to persuade others to buy the products/services that I like. WOM5. I would like to use the “share this” or “buzz” function in a website when I find interesting products. 52 .920 .912 .881 .878 .874 .876 .875 84.564 .94 4.33 (1.520) 88.292 .93 5.16 (1.060) 75.142 .95 4.75 (1.413) .898 .934 .925 .921 .940 .943 .935 .900 .901 .787 .868 .887 Table 3 (Cont‟d). Measurement Properties WOM6. I would like to forward information about interesting products or shopping experiences to my friends. WOM7. I would like to forward positive reviews on a product to my friends. WOM8. I would like to forward negative reviews on a product to my friends. Purchase Intention When social shopping online, I would… PI1. consider buying the product. PI2. buy the product online. PI3. add the product to my wishlist. PI4. add the product to shopping basket. PI5. try the product in a store. PI6. buy the product if I happened to see it in a store. PI7. actively seek out the product in a store in order to purchase it. .879 .894 .811 71.601 .93 .868 .854 .790 .888 .810 .864 .845 5.11 (1.130) Confirmatory Factor Analysis The proposed measurement model in our study involves fourteen multi-item constructs: two of the constructs developed by a second-order factor representing perceived credibility of intellectual capital from three first-order factors (relevance, clarity, and expertise) and perceived credibility of social capital from two first-order factors (bridging and bonding) and seven firstorder factors (information-oriented motives, socially-oriented motives, perceived utilitarian value, perceived hedonic value, perceived self-efficacy, online word-of-mouth intention, and purchase intention). According to the guidelines offered by Anderson and Gerbing (1988), CFA was performed for fourteen constructs using AMOS 4 (See Figure 6) to assess the measurement fit of the constructs with multiple indicators. The CFA results were reported in Table 4. All estimated factor loadings in the measurement model showed high factor loading coefficients and significant t-values (all loadings >.705, p<0.001). 53 The overall fit of the measurement model was assessed. Even though the chi-square test 2 2 was significant (χ = 4368.268, df= 2379, p<0.001, χ /df=1.836), indicating that the proposed model failed to fit the data, other fit indices were considered because chi-square test tends to be sensitive to sample size (Bollen, 1989). Comparative Fit Index (CFI = .94), Bentler-Bonett NonNormed Fit Index (NNFI = .94), and Root Mean Square Error of Approximation (RMSEA =.046) indicated a good fit of the model to the data. Figure 7. Confirmatory Factor Analysis e1 IM1 e2 IM2 e3 IM3 e4 IM4 e5 IM5 e6 IM6 e7 IM7 e8 IM8 e9 IM9 e10 IM10 e11 SM1 e12 SM2 e13 SM3 e14 SM4 e15 SM5 e16 SM6 e17 SM7 e18 SM8 e19 SM9 e20 SM10 Information -oriented Motives Socially-oriented Motives 54 Figure 7 (cont‟d). Confirmatory Factor Analysis e21 ICR1 e22 ICR2 e23 ICR3 e24 ICR4 e25 ICR5 e26 ICC1 e27 ICC2 e28 ICC3 e29 ICC4 e30 ICC5 e31 ICE1 e32 ICE3 e33 ICE4 e34 SCR1 e35 SCR2 e36 SCR3 e37 SCR4 e38 SCR5 e39 SCO1 e40 SCO2 e41 SCO3 e42 UV1 e43 UV2 e44 UV3 e45 UV4 e46 UV5 e47 UV6 e48 UV7 e49 UV8 e50 d1 UV9 Relevance d2 Clarity Intellectual Capital Credibility d3 Expertise Bridging d4 Social Capital Credibility Bonding d5 Perceived Utilitarian Value 55 Figure 7 (cont‟d). Confirmatory Factor Analysis e51 HV1 e52 HV2 e53 HV3 e54 HV4 e55 SE1 e56 SE2 e57 SE3 e58 WOM1 e59 WOM2 e60 WOM3 e61 WOM4 e62 WOM5 e63 WOM6 e64 WOM7 e65 WOM8 e66 PI 1 e67 PI 2 e68 PI 3 e69 PI 4 e70 PI 5 e71 PI 6 e72 PI 7 Perceived Hedonic Value Perceived Self-Efficacy Online WOM Intention Purchase Intention 56 Table 4. Results of Confirmatory Factor Analysis Parameters IM1  Info-oriented Motives IM2  Info-oriented Motives IM3  Info-oriented Motives IM4  Info-oriented Motives IM5  Info-oriented Motives IM6  Info-oriented Motives IM7  Info-oriented Motives IM8  Info-oriented Motives IM9  Info-oriented Motives IM10  Info-oriented Motives SM1  Soc-oriented Motives SM2  Soc-oriented Motives SM3  Soc-oriented Motives SM4  Soc-oriented Motives SM5  Soc-oriented Motives SM6  Soc-oriented Motives SM7  Soc-oriented Motives SM8  Soc-oriented Motives SM9  Soc-oriented Motives SM10  Soc-oriented Motives ICR1  Relevance ICR2  Relevance ICR3  Relevance ICR4  Relevance ICR5  Relevance ICC1  Clarity ICC2  Clarity ICC3  Clarity ICC4  Clarity ICC5  Clarity ICE1  Expertise ICE3  Expertise ICE4  Expertise Relevance  Intellectual Capital Clarity  Intellectual Capital Expertise  Intellectual Capital SCR1  Bridging SCR2  Bridging SCR3  Bridging SCR4  Bridging SCR5  Bridging Std. Std. Estimates Error 0.784 0.858 0.880 0.866 0.856 0.814 0.778 0.801 0.705 0.738 0.900 0.900 0.916 0.916 0.846 0.900 0.818 0.915 0.756 0.868 0.897 0.920 0.908 0.859 0.833 0.897 0.920 0.806 0.921 0.875 0.907 0.818 0.880 0.895 0.934 0.952 0.922 0.904 0.871 0.914 0.923 0.054 0.052 0.050 0.051 0.056 0.042 0.056 0.058 0.055 0.025 0.026 0.032 0.037 0.032 0.039 0.032 0.039 0.037 0.036 0.038 0.039 0.039 0.038 0.043 0.043 0.045 0.046 0.039 0.055 0.050 0.026 0.034 0.036 0.038 57 T-value P-value 19.441 20.071 19.774 19.427 17.429 20.915 17.763 15.143 16.074 38.528 37.455 29.902 23.701 28.533 21.377 29.702 19.809 26.043 29.260 28.932 24.736 23.128 27.206 21.020 25.026 23.517 22.638 26.474 20.036 20.963 36.925 26.422 27.892 26.434 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Construct Variance Reliability Extracted .993 .933 .996 .962 .992 .963 .991 .959 .988 ,964 .987 .961 .994 .969 Figure 4 (cont‟d). Results of Confirmatory Factor Analysis SCO1  Bonding 0.882 SCO2  Bonding 0.917 0.033 SCO3  Bonding 0.874 0.044 Bridging Social Capital 0.962 Bonding Social Capital 0.952 0.039 UV1  Utilitarian Value 0.900 UV2  Utilitarian Value 0.897 0.029 UV3  Utilitarian Value 0.904 0.035 UV4  Utilitarian Value 0.895 0.036 UV5  Utilitarian Value 0.858 0.041 UV6  Utilitarian Value 0.841 0.041 UV7  Utilitarian Value 0.849 0.040 UV8  Utilitarian Value 0.862 0.039 UV9  Utilitarian Value 0.860 0.039 HV1  Hedonic Value 0.869 HV2  Hedonic Value 0.907 0.043 HV3  Hedonic Value 0.896 0.043 HV4  Hedonic Value 0.896 0.042 SE1  Self-Efficacy 0.917 SE2  Self-Efficacy 0.905 0.034 SE3  Self-Efficacy 0.901 0.035 WOM1  WOM Intention 0.891 WOM2  WOM Intention 0.881 0.028 WOM3  WOM Intention 0.742 0.044 WOM4  WOM Intention 0.861 0.038 WOM5  WOM Intention 0.877 0.038 WOM6  WOM Intention 0.850 0.038 WOM7  WOM Intention 0.854 0.039 WOM8  WOM Intention 0.752 0.042 PI1  Purchase Intention 0.875 PI2  Purchase Intention 0.867 0.035 PI3  Purchase Intention 0.778 0.051 PI4  Purchase Intention 0.869 0.040 PI5  Purchase Intention 0.714 0.058 PI6  Purchase Intention 0.784 0.053 PI7  Purchase Intention 0.745 0.057 d1 0.248 0.029 d2 0.176 0.031 d3 0.114 0.025 d4 0.170 0.045 d5 0.183 0.040 χ2= 4368.268, df=2379, p<0.001, χ2/df=1.836 CFI=.94, NNFI=.94, RMSEA=.046 58 31.666 23.979 23.184 33.808 28.769 27.998 25.374 24.237 24.738 25.664 25.538 26.170 25.522 25.492 29.233 28.938 36.223 18.562 24.422 25.469 23.509 23.186 18.665 28.703 19.097 25.846 15.220 17.458 16.693 8.578 5.744 4.656 3.819 4.589 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 .989 .969 .990 .979 .995 .958 .990 .961 .991 .973 .994 .955 .991 .939 - - The quality of data was evaluated in terms of convergent validity, discriminant validity, and reliability (Kline, 1998). Referring to Table 4, all the indicators were statistically significant for the proposed constructs. Because no indicators had loadings so low that they should be deleted and the model re-estimated, the SEM-based composite reliability and variance extracted estimates for each construct need to be computed. Table 4 contains the computations for both the composite reliability and the variance extracted estimates. In terms of reliability, all constructs exceed the acceptable level of .70. In terms of variance extracted, all constructs exceed the threshold value of .50 (Fornell & Larcker, 1981). Thus, all scales achieved satisfactory internal consistency. Convergent validity was assessed by the significance of the factor loadings (Anderson & Gerbing, 1988). All factor loading values for each individual indicator to its respective latent variable were higher than .70 and significant at the .001 level. These results support that the measured items robustly represented the underlying constructs, showing strong evidence of convergent validity (Bollen, 1989; Kline, 1998). Discriminant validity refers to the degree to which extracted factors measured by different sets of indicators falling within the same latent construct are distinguished from one another (Bollen, 1989; Kline, 1998). One test which is useful to determine whether constructs are significantly different is Bagozzi, Yi, and Phillips‟s (1991) discriminant validity test (Confidence Interval = [parameter estimate (phi value) ± 1.96] * standard error). Discriminant validity is achieved when the confidence interval (CI) of the parameter estimate is less than 1.0 (Anderson & Gerbing, 1988). Since the CIs of the parameter estimates of the nine latent variables are less than 1.0, the discriminant validity is achieved (See Table 5). 59 Table 5. The Phi Values and Confidence Interval for Discriminant Validity Covariances Parameter Estimate Std. Error Info Motives ↔ Soc Motives Info Motives ↔ Intellectual Capital Info Motives ↔ Social Capital Info Motives ↔ Hedonic Value Info Motives ↔ Utilitarian Value Info Motives ↔ Self-Efficacy Info Motives ↔ Purchase Intention Info Motives ↔ WOM Intention Soc Motives ↔ Intellectual Capital Soc Motives ↔ Social Capital Soc Motives ↔ Hedonic Value Soc Motives ↔ Utilitarian Value Soc Motives ↔ Self-Efficacy Soc Motives ↔ Purchase Intention Soc Motives ↔ WOM Intention Intellectual Capital ↔ Social Capital Hedonic Value ↔ Intellectual Capital Hedonic Value ↔ Social Capital Hedonic Value ↔ Self-Efficacy Hedonic Value ↔ Purchase Intention Hedonic Value ↔ WOM Intention Utilitarian Value ↔ Intellectual Capital Utilitarian Value ↔ Social Capital Utilitarian Value ↔ Hedonic Value Utilitarian Value ↔ Self-Efficacy Utilitarian Value ↔ Purchase Intention Utilitarian Value ↔ WOM Intention Self-Efficacy ↔ Intellectual Capital Self-Efficacy ↔ Social Capital Self-Efficacy ↔ Purchase Intention Self-Efficacy ↔ WOM Intention WOM Intention ↔ Intel_cap WOM Intention ↔ Social Capital WOM Intention ↔ Purchase Intention Purchase Intention ↔ Intellectual Capital Purchase Intention ↔ Social Capital 0.781 0.725 0.712 0.716 0.948 0.714 0.934 1.014 1.083 2.052 1.698 1.017 0.894 1.033 1.614 1.117 0.998 1.752 0.828 1.017 1.502 0.955 1.078 1.059 0.928 1.061 1.265 0.820 0.931 0.891 1.125 1.177 1.676 1.286 0.922 1.059 0.112 0.082 0.104 0.099 0.095 0.080 0.095 0.116 0.109 0.173 0.155 0.112 0.100 0.113 0.158 0.106 0.098 0.151 0.089 0.103 0.143 0.086 0.109 0.105 0.081 0.093 0.117 0.075 0.096 0.081 0.104 0.110 0.154 0.119 0.085 0.109 60 Confidence Interval Low -0.132 -0.101 -0.130 -0.123 -0.096 -0.100 -0.097 -0.110 -0.096 0.016 -0.041 -0.106 -0.107 -0.105 -0.055 -0.089 -0.094 -0.031 -0.101 -0.097 -0.065 -0.086 -0.096 -0.095 -0.084 -0.084 -0.081 -0.086 -0.099 -0.087 -0.087 -0.086 -0.044 -0.080 -0.088 -0.098 Confidence Interval High 0.307 0.220 0.278 0.265 0.276 0.214 0.275 0.345 0.332 0.694 0.567 0.333 0.285 0.338 0.565 0.326 0.290 0.561 0.248 0.307 0.495 0.251 0.331 0.317 0.234 0.281 0.377 0.209 0.278 0.231 0.321 0.345 0.560 0.386 0.245 0.329 Analysis of the Structural Model for Hypothesis Testing Using a maximum likelihood estimation technique, we conducted SEM analysis to test the causal relationship between constructs in the proposed model. The results of path analysis 2 2 indicated that the model had a significant chi-square value (χ = 292.612, df= 41, p<0.001, χ /df= 7.137). Although the RMSEA= .124 was slightly higher than would be desirable (RMSEA ≤0.1), other fit indices met the recommended criteria and showed a satisfactory fit to the data (CFI= .95, NNFI= .94). Based on these measures, we can conclude that the model is marginally acceptable due to high RMSEA value. The standardized parameter estimates, standard errors, t-values, and fit indices are reported in Table 6, hypothesis test results are summarized in Figure 8, and the covariance matrix for the path analysis is reported in Appendix D. Relationship between Social Shopping Motivation and Social Shopping Attention As predicted in H1, the test results indicate that consumers‟ information-oriented motives positively affect their perceived utilitarian value of social shopping (γ=.27, p<0.001). H2 proposed that consumers‟ socially-oriented motives would have a positive effect on their perceived hedonic value of social shopping and the results show no significant effect of consumers‟ socially-oriented motives on their perceived hedonic value (γ=.03, p=0.591, n.s.). Thus, testing results for the relationship between social shopping motivations and value perceptions show that hypothesis 1 is supported but hypothesis 2 is not accepted. H1: Consumers’ information-oriented motives will positively influence their utilitarian value perceptions in social shopping. [Supported] H2: Consumers’ socially-oriented motives will positively influence their hedonic value perceptions in social shopping. [Not Supported] 61 Relationship between Social Shopping Resource Credibility and Social Shopping Attention H3 addressed a positive relationship between consumers‟ perceived credibility of intellectual capital and perceived utilitarian value of social shopping. The results show a significant and positive effect of consumers‟ perceived credibility of intellectual capital on their perceived utilitarian value (γ=.66, p<0.001). As proposed in H4, consumers‟ credibility perceptions of social capital have a significant and positive effect on their hedonic value perceptions (γ=.82, p<0.001). Therefore, two hypotheses regarding the relationships between credibility perceptions of social shopping resource and perception values are supported. H3: Consumers’ perceived credibility of intellectual capital will positively influence their perceived utilitarian value of social shopping. [Supported] H4: Consumers’ perceived credibility social capital will positively influence their perceived hedonic value of social shopping. [Supported] Relationship between Social Shopping Attention and Social Shopper‟s Memory As predicted in H5, the results in the path analysis show that consumers‟ perceive that utilitarian values positively affect their self-efficacy (β=.68, p<0.001). Regarding the effect of perceived hedonic values on self-efficacy, the analysis results show that consumers‟ perceive that hedonic values positively affect their self-efficacy (β=.11, p<0.05). Thus, both hypothesis 5 and 6, examining the relationships between value perceptions and self-efficacy perception are supported. H5: Consumers’ perceived utilitarian values will have a positive influence their perceived self-efficacy. [Supported] H6: Consumers’ perceived hedonic values will have a positive influence their perceived self-efficacy. [Supported] Relationship between Social Shopping Attention and Social Shopper‟s Behavior 62 H7 proposed that consumers‟ perceived utilitarian values would have a positive effect on online WOM and purchase intentions. The results indicate that online WOM intentions (H7a: β=.27, p<0.001) and purchase intentions (H7b: β=.40, p<0.001) are influenced by utilitarian values. Thus, hypotheses 7a and 7b are supported. Regarding the relationships between consumers‟ perceived hedonic values and shopping intensions, the significant impacts of perceived hedonic values on online WOM intentions (H8a: β=.35, p<0.001) and purchase intentions (H8b: β=.13, p<0.001) are found, and therefore H8a and H8b are supported. H7: Consumers’ perceived utilitarian values will positively influence their (a) online WOM intentions [Supported] and (b) purchase intentions. [Supported] H8: Consumers’ perceived hedonic values will positively influence their (a) online WOM intentions [Supported] and (b) purchase intentions. [Supported] Relationship in Social Shopper‟s Behavior H9 predicted a positive relationship between consumers‟ online WOM intentions and purchase intentions. The result reveals that a significant and positive impact of online WOM intentions on purchase intentions (β=.23, p<0.001), supporting hypothesis 9. H9: Consumers’ online WOM intentions will positively influence purchase intentions. [Supported] Relationship between Social Shopping Memory and Shopper‟s Behavior As predicted in H10, the analysis results show that consumers‟ perceived self-efficacy positively affects online WOM intentions (H10a: β=.29, p<0.001) and purchase intentions (H10b: β=.18, p<0.001). Therefore, regarding the effect of perceived self-efficacy on shopping intentions, hypothesis 10a and 10b are supported. H10: Consumers’ perceived self-efficacy will positively influence (a) online WOM intentions [Supported] and (b) purchase intentions. [Supported] 63 Table 6. Results of Path Model Analysis Parameters Utilitarian Value  Info-oriented Motives Hedonic Value  Soc-oriented Motives Utilitarian Value  Intellectual Capital Hedonic Value  Social Capital Self-Efficacy  Utilitarian Value Self-Efficacy  Hedonic Value WOM Intention  Utilitarian Value Purchase IntentionUtilitarian Value WOM Intention  Hedonic Value Purchase IntentionHedonic Value Purchase Intention WOM Intention WOM Intention  Self-Efficacy Purchase Intention Self-Efficacy Measurement Relevance  Intellectual Capital Model Clarity  Intellectual Capital Expertise  Intellectual Capital Bridging Social Capital Bonding Social Capital Covariance Info Motives ↔ Soc Motives Info Motives ↔ Intellectual Capital Info Motives ↔ Social Capital Soc Motives ↔ Intellectual Capital Soc Motives ↔ Social Capital Intellectual Capital ↔ Social Capital d1 ↔ d2 Disturbance d1 Variance d2 d3 d4 d5 χ2= 292.612, df=41, p<0.001, χ2/df=7.137 CFI=.95, NNFI=.94, RMSEA=.124 Structural Model 64 Std. Estimates 0.274 0.034 0.655 0.824 0.681 0.113 0.271 0.399 0.352 0.127 0.234 0.288 0.184 0.850 0.919 0.904 0.948 0.908 0.429 0.592 0.429 0.681 0.862 0.787 0.233 0.377 0.625 0.473 0.738 0.386 Std. Error 0.034 0.063 0.049 0.070 0.037 0.028 0.060 0.045 0.036 0.028 0.036 0.062 0.047 0.046 0.045 0.030 0.097 0.072 0.095 0.095 0.146 0.098 0.028 0.030 0.052 0.033 0.052 0.027 T-value 7.857 0.537 15.922 12.435 16.572 2.739 5.410 8.505 9.002 3.273 5.184 6.139 4.160 25.188 24.448 32.802 7.904 9.539 7.667 10.491 12.704 11.143 4.081 12.767 12.008 14.177 14.177 14.177 Figure 8. Summary of Path Model Analysis Results d1 Information -oriented Motives Socially -oriented Motives .27*** .66*** Perceived Utilitarian Value Clarity Expertise Bridging Bonding Social Capital Credibility d4 .40*** .68*** .29*** d3 1 Perceived Self-efficacy Relevance Intellectual Capital Credibility .27*** .03 n.s. .82*** .11** Perceived Hedonic Value .35*** .23*** .18*** Purchase Intention .13*** d2 *** p<.001, ** p<.01, * p<.05, n.s.=not significant (p>.05) 65 Online WOM Intention d5 DISCUSSION This study raises questions about the role of social shopping in decision-making and examines the effects of social shopping motivations and perceptions on consumers‟ shopping intentions. SLT, SCT, self-efficacy, and social media effect provide theoretical support for the research. Perceived values influenced by the two factors of social shopping motivation and credibility perception of the social shopping resource are proposed as antecedents of perceived self-efficacy. Consumers‟ shopping intentions (online WOM and purchase intentions) are modeled as consequences of perceived values and self-efficacy. The results indicate that social shopping motives have a moderately positive effect on perceived values, while credibility perceptions of social shopping resources have a strong and positive effect on perceived values. Perceived self-efficacy mediated perceived values and behavioral intentions. Also we found that social shopper‟s behavioral intentions are directly affected by perceived values. Overall, the findings support the proposed model in explaining social shopping behavior and its effect on consumer‟s shopping experience, decision-making, and behavioral intentions. In the following section, research findings are discussed more specifically. Antecedents of Perceived Social Shopping Values This study proposed a conceptual model of social shopping motivation (informationoriented and socially-oriented motives) and resource credibility (credibility perceptions of intellectual capital and social capital) as antecedents to social shopping attention (perceived utilitarian and hedonic values). Based upon the literature, an underlying assumption was that 66 consumers‟ utilitarian values are likely perceived by information-oriented motives and perceived credibility of intellectual capital; their hedonic values are likely perceived by socially-oriented motives and perceived credibility of social capital. Our results indicate that information-oriented motives significantly influence utilitarian value. Social shopping sites as an information resource help consumers to discover and learn about products. Consumers are likely to achieve a useful shopping experience when they can search and acquire information from CGC to become informed about products and trends before making a purchase decision. Therefore, our findings are consistent with prior studies in the literature on the relationship between consumers‟ information search motives and value-based shopping activity (Bei et al., 2004; Bloch et al., 1986; Hirschman & Wallendorf, 1982; Klein, 1998). Furthermore, the empirical results indicate that social shoppers‟ utilitarian values are influenced by not only information-oriented motives but also perceived credibility of intellectual capital; Information-oriented motives have a moderately positive effect on perceived utilitarian value, while perceived credibility of intellectual capital has a stronger positive effect on perceived utilitarian value. In a social shopping environment, social shoppers are more likely to perceive usefulness when other consumers‟ reviews or recommendations are relevant and accurate and when other consumers are knowledgeable and expert. Unexpectedly, our findings show that perceived hedonic value is not significantly affected by socially-oriented motives. Consumer‟s motivation to shop with others does not increase the perceived enjoyment in a social shopping environment. This finding is not consistent with the literature which reports a positive relationship between consumers‟ social interaction and communication motives and value-based shopping activity (a fun and entertainment activity) (Bei et al., 2004; Cohn & Park, 2007; Holbrook & Hirschman, 1982; Kiecker & Hartman, 1993; 67 Rhone, 2007). Although socially-oriented motives have no effect on perceived hedonic value, perceived credibility of social capital has a significant and positive effect on perceived hedonic value. These findings demonstrate that, most importantly, credibility perceptions of social shopping resources are stronger drivers of perceived social shopping values than social shopping motivations. This implies that believable CGC information and a trustworthy interaction relationship in a social shopping environment increase the benefits of social shopping. This is consistent with the notion that consumers perceive shopping benefits and values when they have a positive experience with shopping resources, such as useful product information and fun social interaction (Babin et al., 1994; Hirschman & Wallendorf, 1982; Holbrook & Hirschman, 1982). This also suggests that the perceived value literature can be applied to a specific social shopping situation. The Effects of Perceived Social Shopping Values The study investigates the effects of consumers‟ perceived values on their self-efficacy and online WOM and purchase intentions. The results show that perceived utilitarian and hedonic values significantly influence perceived self-efficacy, online WOM and purchase intentions. These findings support the important role of perceived values in influencing perceived self-efficacy and behavioral intentions (Zeithaml, 1988). When consumers effectively utilize social shopping environment resources and pleasantly receive social supports, their uncertainty is reduced and they are likely to consider themselves capable of and assured of their shopping decisions. Both utilitarian value and hedonic value influence self-efficacy, but utilitarian value is more influential. A possible explanation of this finding is that social shoppers are highly 68 confident about their shopping related decisions when they heavily rely on the efficiency and usefulness of the product information rather than the excitement and enjoyment achieved through social interactions. Utilitarian value is more important than hedonic value in terms of influencing consumers‟ self-efficacy. Hence, this finding implies that utilitarian values, established by credibility perceptions of intellectual capital, increase shopper confidence in making purchase decisions. Our research shows that there are significant effects of perceived values on online WOM intentions. Relatively, hedonic value has a stronger influence on online WOM intentions than utilitarian value. Consumers with high perceived hedonic value are willing to get involved in WOM activities (online forwarding or online chatting) and are interested in sharing information on their networks when making a decision. We can interpret this result as indicating that consumers consider sharing shopping experience to a lesser degree with regard to a utilitarian value than with a hedonic value. Our hypotheses about the effect of perceived values on purchase intentions are supported. Both perceived utilitarian value and perceived hedonic value significantly influence purchase intentions. These findings are supported by the previous literature, which describes a positive relationship between consumers‟ perceived value and shopping intention. Utilitarian value has a relatively stronger effect on purchase intentions than hedonic value. It is consistent with several studies that demonstrate that Internet shopping intention is mostly driven by utilitarian values (Alba et al., 1997; Blake, Neuendorf, & Valdiserri, 2005; Keeney, 1999; To, Liao, & Lin, 2007). Our result reveals that social shoppers‟ purchase intentions are more likely to be determined by perceived utilitarian value than by perceived hedonic value. Further investigation reveals that there is an indirect effect of perceived hedonic value on 69 purchase intentions through online WOM intentions. Perceived hedonic value triggers online WOM intentions and indirectly causes a purchase intention. In other words, shopping enjoyment generates WOM intention, which in turn generates purchase intention. Taken together, such findings imply that online forwarding and chatting are the behavioral consequences of perceived social shopping values and increase purchase intention of social shoppers. The Relationships among Perceived Self-Efficacy and Behavioral Intentions The study empirically supports the mediating role of consumers‟ self-efficacy between their perceived values and behavioral intentions. Consumers‟ self-efficacy built by perceived values has significant and positive effects on online WOM and purchase intentions. This finding is consistent with the notion proposed by SCT and TPB (Ajzen, 1985; Bandura, 1997) that selfefficacy predicts people‟s behavioral intention. Thus, the more social shoppers are assertive and confident online, and they are more likely to share information through online forwarding/chatting and buy a product than less social shoppers. In addition, the result indicates that purchase intentions are significantly affected by online WOM intentions. This finding is supported by prior research examining the effect of WOM communication on purchase intentions (Bellman et al., 1999; Fong & Burton, 2006). Also further investigations about the role of online WOM intentions reveal that there are indirect effects of perceived values and self-efficacy on purchase intentions through online WOM intentions. In other words, there is a mediating variable (i.e., online WOM intentions) in the model between perceived values and purchase intentions and between perceived self-efficacy and purchase intentions. These imply that online WOM behaviors play an important and influential role in determining purchase behavioral intentions. 70 CHAPTER V CONCLUSION AND IMPLICATIONS The purpose of this chapter is to summarize the study discussed in Chapter I through Chapter IV and report implications from the research findings. We summarize the objectives of the study, development of conceptual model, research design and methods, and empirical study findings in the next section. In the following section, we discuss the theoretical and managerial implications of our findings. Finally, we conclude with a discussion of the study‟s limitations and directions for future research. Summary of the Study With the advent of Web 2.0 which builds on openness, participation, and sharing, consumers‟ activities and marketers‟ practices have changed significantly as they search for ways to buy, sell, and communicate with consumers through cyberspace. The role of CGC and online WOM via social media channels has received much attention recently and it is important because it can support consumers in making informed decisions and can help marketers increase sales. Although Internet media use and online shopping studies emphasize that satisfying consumer demand for CGC and strengthening the power of online WOM are beneficial for both consumers and marketers, there is still a lack of research in respect to online social shopping. The objectives of this study are to examine consumers‟ social shopping behavior to assess 1) who social shoppers are and why they are likely to search for and share CGC with others and 2) how social shopping motivation and resource credibility influence consumers‟ value perceptions and 71 confidence level in their purchase decision. Using the underlying tenets of SCT, we developed a conceptual framework to explain social shopping behavior (See Figure 3). In the model, social shopping motivation and resource credibility were conceptualized as antecedents to consumers‟ social shopping attention. And consumers‟ memory was conceptualized as an important mediating variable between their social shopping attention and behavior. Specifically in Chapter II, we discussed and hypothesized relationships between 1) social shopping motivation (i.e., information-oriented and sociallyoriented motives), 2) social shopping resource credibility (i.e., intellectual and social capital), 3) social shopping attention (i.e., perceived utilitarian and hedonic value of social shopping), 4) social shoppers‟ memory (i.e., perceived self-efficacy in decision making), and 5) social shoppers‟ behavior (i.e., online WOM and purchase intentions). As a result, the proposed model investigated the effects of social shopping motives and beliefs about social shopping resources on consumers‟ value perceptions which can influence self-confidence in decision making and lead to online WOM buzz and purchase decisions. Incorporated with the literature study, the survey instrument for the empirical study was developed and modified to reflect the social shopping environment. The population for this study was online consumers who join web communities, such as Facebook, MySpace, etc. to search for or share shopping information. Online survey research methods were used to recruit participants and collect data from online consumer panels of a websurvey service company. 625 participants participated and during pre-screening and 403 were qualified to continue the survey; we achieved a 64.5% response rate. According to Anderson and Gerbing (1988) guidelines, CFA was conducted for all multi2 item constructs used in the model. The resulting model fit was acceptable (χ = 4368.268, df= 72 2379, p<0.001, CFI= .94, NNFI= .94, RMSEA= .046). To test hypotheses, path analysis was 2 performed and the results of model fit indices indicated a satisfactory fit to the data (χ = 292.612, df= 41, p<0.001, CFI= .95, NNFI= .94, RMSEA= .124). 12 out of 13 hypotheses were supported in the proposed model. The results of hypothesis testing are summarized in Table 7. The analysis results indicated that perceived values were moderately influenced by social shopping motives and significantly affected by credibility perceptions of informational and social resources. In addition, the study found that consumers‟ perceived values significantly influenced behavioral intentions. Perceived self-efficacy was more strongly and significantly influenced by utilitarian value than hedonic value. The mediating role of perceived self-efficacy between perceived values and behavioral intentions was found. In general, the findings of this study support the proposed theoretical model in explaining consumers‟ social shopping behavior. Research findings were specifically discussed in Chapter IV. 73 Table 7. Summary of Hypothesis Testing Hypotheses H1 H2 H3 H4 H5 H6 H7a H7b H8a Consumers’ information-oriented motives will positively influence their utilitarian value perceptions in social shopping. Consumers’ socially-oriented motives will positively influence their hedonic value perceptions in social shopping. Consumers’ perceived credibility of intellectual capital will positively influence their perceived utilitarian value of social shopping. Consumers’ perceived credibility social capital will positively influence their perceived hedonic value of social shopping. Consumers’ perceived utilitarian values will have a positive impact on their perceived self-efficacy. Consumers’ perceived hedonic values will have a positive impact on their perceived self-efficacy. Consumers’ perceived utilitarian values will have a positive impact on their online WOM intentions. Consumers’ perceived utilitarian values will have a positive impact on their purchase intentions. Consumers’ perceived hedonic values will have a positive impact on their online WOM intentions. Results Supported Not Supported Supported Supported Supported Supported Supported Supported Supported H8b Consumers’ perceived hedonic values will have a positive impact on their purchase intentions. Supported H9 Consumers’ online WOM intentions will positively influence purchase intentions. Supported H10a Consumers’ perceived self-efficacy will positively influence online WOM intentions. Supported H10b Consumers’ perceived self-efficacy will positively influence purchase intentions. Supported 74 Theoretical Implications With the growing importance of the role of CGC and WOM in the consumer decisionmaking process, our social shopping behavior study will contribute by extending the most recent body of the literature in the online consumer behavior and retailing field. Firstly, by applying Bandura‟s (1988) SCT, this study provides an interesting framework for understanding social learning, social media, and social shopping. SCT, derived from the social learning perspective, explains that consumers‟ behaviors are socially learned through observational learning and vicarious reinforcement. Also it emphasizes the role of self-efficacy (beliefs in one‟s ability to affect change) in the process of social learning (Bandura, 1988) and uncertainty reduction (Berger, 1987). Therefore, our study develops the theoretical and conceptual framework for consumers‟ social shopping behavior that they interactively seek information with others and achieve self-confidence in purchase decision-making. Secondly, this study extends the understanding of social shopping behavior regarding resource credibility developed by intellectual and social capital in a social shopping environment. Our findings show a strong influence of resource credibility on social shopping attention (i.e., perceived values) that lead to an increase social shopping memory (i.e., self-efficacy) and social shopper‟s behavior (i.e., behavioral intentions). Thus, our study finds that such resource credibility is a more dominant determinant of social shopping attention relative to social shopping motivation in the process of social learning. It supports the SCT major view that consumers are more likely to adopt a modeled behavior if it results in outcomes they value and if the modeled behavior is convincing. Thirdly, based on the empirical investigation of online social shoppers, this study supports that social shopping motivations and credibility perceptions are the key antecedents of 75 perceived values; perceived self-efficacy is a mediator in the effect of perceived values on behavioral intentions. Our findings indicate that perceived values and perceived self-efficacy significantly increase online WOM intentions as well as purchase intentions. Overall, the proposed model ensures the theoretical soundness and coherence of the conceptual model. Finally, our study advances online shopping literature and social media literature, an underdeveloped but important research area. By linking social shopping behavior, this study contributes to the literatures by discovering a powerful factor that makes consumer‟s shopping more efficient, enjoyable, and confident in a social shopping environment. Managerial Implications This study also provides useful implications for practitioners in developing and implementing marketing strategies of social shopping applications to boost sales, improve customer loyalty or keep customers engaged by enhancing user experience, activate WOM value, and differentiate them from the competition. We found that information-oriented motives and credibility perceptions of informational and social resources ultimately affect consumers‟ value perceptions that result in self-efficacy and behavioral intentions. These findings imply that retailers should recognize and utilize social shopping sites to go beyond traditional consumer reviews. By embracing the inherently social nature of shopping, social shopping can enhance the consumer shopping experience and thereby drive purchase behavior. Social shopping could satisfy consumers‟ utilitarian needs in ways similar to traditional web reviews, but go beyond the traditional realm by satisfying much more hedonic needs from social interactions. By leveraging social shopping applications, retailers can attract more social shoppers, create credible social shopping experiences, and maximize their WOM marketing efforts. 76 Retailers should strive to enhance the level of all aspects of information quality and trust in a social shopping environment. To improve information quality, for example, managers can introduce and invigorate a CGC rating system that allows virtual community members to evaluate a CGC provider as an expert or value CGC as knowledgeable or experienced information. Also, consumers can search relevant product information easily by adding tags that are carried out to perform functions such as aiding in classification. Based on ratings or tags, other consumers can employ a highly-rated or highly-relevant CGC as believable information in maximizing the reduction of pre-purchase uncertainty and the perceived social shopping values. To build trust in a social shopping environment, retailers should focus on how to improve shoppers‟ bridging and bonding relationships through the collective voice from friends (people shoppers know), brand or staff experts, people like me (people who have similar tastes/interests), unknown users, etc. According to the Nielsen global online consumer survey, 90% of online consumers trust recommendations from people they know and 70% trust virtual stranger opinions (The Nielsen Company, 2009). Therefore, it is important for retailers to identify verified users and present balanced perspectives, opinions, thoughts, and experiences. Also, retailers should consider a successful connection with a powerful online community/social media/social networking site that has rich CGC and a trustworthy consumer community, and make the site link available to consumers. Retailers need to stimulate and manage CGC and WOM. They should consider the right product/service reviews and recommendations, regardless of positive and negative opinions, and use them in improving product/service quality and increasing positive CGC and WOM. Communication strategists should be interested in online WOM since it has the potential to activate shoppers‟ interests, choices, and actions. To facilitate the uses of online WOM, 77 strategists need to enhance trust in information and ideas that are shared among web community members, under the assumption that WOM messages are perceived to have utilitarian and hedonic value and increase self-efficacy. We found utilitarian and hedonic value to be significant determinants of self-efficacy and behavioral intention, therefore practitioners should devote resources to creating websites that provide the most compelling experience to their current and potential consumers. So, retailer websites should be designed to include not only elements that help consumers complete their tasks but also elements that offer fun or playfulness. It is necessarily about making interaction rewarding and enjoyable to the shopper. For instance, practitioners can develop and test a website element (e.g., online social cue, such as text, video, picture) that may contribute to a positive social shopping experience. Practices that add value for shoppers include being conversational about topics shoppers care about, facilitating communities, offering recipes or how-tos, and providing education about relevant product or service information. Retail shopping sites should contain blog communities or forums for discussion of particular topics. Shoppers can form groups based on similar interests for forum discussions and to track product discoveries and reviews. Community members can share trends and great product finds and seek out specific information. These user profiles and group memberships enable shoppers to receive personalized product recommendations or reviews tailored to their particular tastes. Also, retailers should manage a technique that can make product-specific discussion forums more effective. This technique should increase the value of community members‟ intellectual capital and social capital building within a specific domain. With the advancements of Internet technology, shopping websites should be able to provide a more comprehensive Internet shopping environment and bring more enjoyment and convenience to 78 shoppers. Thus, retailers have to test and explore the potential of social commerce (selling with social media) and integrate it into their online strategy. Also, they should constantly evolve and adapt social shopping applications and social commerce tools (e.g., reviews/ratings, forums/communities, purchase sharing, group buy, social apps) to exceed shopper expectations and bring joy of use with new insights and technology. Advertising or promoting the expertise or competence of a discussion forum member can increase the relationship between retailers and their customers and encourage consumers to purchase. Managers can use their social medium to influence opinion leaders and indirectly sway consumers who look to opinion leaders for details like product recommendations. In addition, marketers should know social shopping is about people (not technology) influencing people. So, focusing on people, particularly „prosumers‟ who have been become the voices of products, can significantly impact the success or failure of companies, products, particularly through their involvement in the social network environment. The term „prosumer‟ has transformed from professional- or producer-consumer to product advocate since prosumers (e.g., bloggers, forum posters, social networking participants) are the members of the social network sites, who spread messages, influence people around the world, and drive demand (Tapscott, 1997). Thus, prosumers are the online influencers that marketers must identify and develop relationships with in order for their products to thrive. 79 LIMITATIONS AND FUTURE RESEARCH Before drawing generalizations from these results, we identified several limitations of our study. In response to the limitations, we suggest several directions for future research. First, the omission of important variables might have introduced some bias. Social shopping behavior may be influenced by other factors, such as consumer personality, preference, and lifestyle, that might influence uncertainty reduction and confidence level, and ultimate purchase behaviors not accounted for in our study. For example, Arnold and Reynolds (2003) indicate that females emphasize hedonic value more than males and have stronger hedonic shopping motivations. In view of that, consumers with different backgrounds (i.e. gender, education, age, and Internet shopping history) should have different perspectives on utilitarian and hedonic values. Future research could investigate the differences of shopping motivations based on different consumer market segments. Secondly, the sample for the study was collected from online consumer panels whose members are likely to participate in online surveys. They might be active online users or are predisposed to garnering positive attitudes toward online activities. It is possible that the majority of the respondents who participated in this survey had a more positive attitude toward social shopping or a more pleasant shopping experience than those who did not participate. Hence, the sample characteristics (e.g., Internet usage) should be taken into consideration when selecting a sample. A direction for future research could be a comparison of social shoppers and non-social shoppers. It would be interesting to investigate what the major drivers of shopping value and self-efficacy for non-social shoppers are and how they are different from social shoppers. 80 Another related future research area is Net Generation behavior. There is significant potential for growth in the social shopping sphere given that individuals, and particularly the younger generation, have become increasingly comfortable with the use of technology. According to Tapscott (1998), Net Geners (aged 20 and under) are surrounded by interactive digital media (e.g., Internet) and for the most part, are fluent with computers. They are exceptionally curious, self-reliant, able to adapt, high in self-esteem, and have a global orientation. Their power is at the heart of the culture of interaction online. It would be interesting to compare behaviors of Net Geners to those of other generations (e.g., Gen Xers and Baby Boomers) regarding decision supports and decision making in a social shopping environment. For example, with respect to interactive learning, whether the Net Geners learn differently than most Baby Boomers. There might be a generation gap between web-savvy kids and their far less literate baby boomer parents. The finding may provide significant implications for retailers to understand and target customers. Thus, the customer segmentation issue provides a promising focus for further research. In summary, future research on social shopping should identify specifically 1) who is going to use the decision support through learning from an informational and social shopping resource, 2) why, when, and how they will use it, and 3) what it is that they will use exactly. Thirdly, our respondents were asked to indicate their broad social shopping perceptions and experiences as opposed to focusing on a specific website. Because participants are exposed to many and various consumer review sites, online retailers‟ sites, or social media sites, it is likely that respondents who used several sites may have a less clear or mixed memory about their shopping experiences. Therefore, the findings cannot be generalized to explain a particular shopping site experience. Depending on product/service types, information search/seeking 81 behavior and social shopping behavior may differ. In our study, the product/service categories were not designated. Thus, the findings of this research cannot detect the influence of a specific product shopping category on behavior. Regarding the limitations, the empirical research design and method used in the study serve to increase the external validity and generalizability of the findings, but at the same time, the data analysis could suffer from higher error variances caused by various shopping categories or site choices. So, it would be interesting to conduct a study that samples consumers shopping for a specific product type at a specific type of social shopping site as a moderating factor to examine their shopping experiences. Lastly, future research needs to investigate alternative explanation for the uncertainty reduction and decision support. This study focuses on value perception and self-efficacy as key predictors of behavioral intentions. As discussed previously, value perception and self-efficacy may be affected by a number of other factors. Some factors could be the effect of familiarity, prior positive experience, and involvement. Hill and Beatty (2011) found that more involved adolescent online consumers can be differentiated from less involved online consumers on shopping motivation, self-efficacy, and behavior. Thus, we can test a moderating effect of consumers‟ involvement on self-efficacy and social shopping behavior. Incorporating additional exogenous variables of shopping value and self-efficacy would increase the explanatory power of these constructs that account for variance in behavioral intentions. In addition to the call for extending research on the antecedents of social shopping value and self-efficacy, future research should especially devote attention to the outcomes of social shopping value and self-efficacy. Our study was limited to considering online WOM and purchase intentions as the social shopping outcomes, but further research should be conducted to investigate additional outcomes, such as repatronage intention and impulse buying intention. 82 Discussing a purchase, and sharing/searching information with friends or other consumers who are present online at the time of purchase is one way an online shopper can reduce uncertainty in the make or buy decision. While some social shoppers can take advantage of social comparisons with other people, other social shoppers may struggle for accurate self-observation. LaRose (2001) examined unregulated online buying, including impulsive and compulsive buying, and found that ecommerce site features have an impact on self-regulation; product descriptions using fantasy images, the excitement generated by email alerts of sales, buying circles, on-site chat rooms, and email exchanges with sales consultants may discourage or encourage self-regulation. 83 APPENDICES 84 APPENDIX A Survey Consent Form 85 You are invited to be in a research study on social shopping behavior. We ask that you read this form and ask any questions you may have before agreeing to be in the study. Purpose of research: You have been selected as a possible participant in this study because you are an online shopper. The purpose of this study is to understand how consumers interact, search, share, and shop with others on the Internet. Based on your responses, this research will help us extend the body of knowledge on online consumer behavior. The survey will take approximately 20 minutes to complete. Please note that in order to be eligible to participate in this study, you need to be older than 18 years old. What you will do: All you have to do is thinking about your online shopping patterns and responding to the survey. Potential benefits: You will not directly benefit from your participation in this study. However, your participation in this study may contribute to understand online social shopping activity and enhance the customer shopping experience. Potential risks: You are not expected to participate in any treatments that would incur the risk of physical or mental injury during your participation in this study. Privacy and confidentiality: The data for this project are being collected anonymously. All responses will be kept strictly confidential and reported together with those of other participants so that no individual will be identified in anyway. Your privacy will be protected to the maximum extent as allowable by law. Data will be analyzed only in the aggregate so that your name will not be associated with the answers you provide. Your rights to participate, say no, or withdraw: Participation is completely voluntary. You have the right to say no. Therefore, you may choose not to participate and may discontinue participation at any time. Moreover, you can withdraw or refuse to answer any particular question. Costs and compensation for being in the study: For completing the survey, you will receive an incentive from Zoomerang market research firm that you agree to participate in online surveys. Contact information for questions and concerns: If you have any questions about this study, please contact the researchers: Dr. Linda Good (517-355-1282, goodL@msu.edu, 309 Communication Arts and Science, Michigan State University, East Lansing, MI 48824) or Zee-Sun Yun (517-290-3817, yunzeesu@msu.edu). If you have questions or concerns regarding your rights as a study participant, or are dissatisfied at any time with any aspect of this study, you may contact anonymously if you wish, the Michigan State University‟s Human Research Protection Programs at 517-355-2180, Fax 517- 432-4503, or email irb@msu.edu or regular mail at 202 Olds Hall, East Lansing, MI 48824. Documentation of informed consent: By completing and submitting this online survey you consent to participate in this study. We greatly appreciate your participation. 86 APPENDIX B Survey Instrument 87 Social Shopping Conducting research on consumer behavior toward online social shopping, we seek those who have searched/shared information of hot deals, sales information, reviews, or recommendations with others about a product, a service, or a company on the Internet. Have you ever searched for or shared hot deals, sales information, reviews or recommendations with others about a product, a service, or a company on the Internet? __Yes __No If you say “Yes” to the above question, we would like you to complete our survey. This survey will take approximately 20 minutes to complete. You indicate your voluntary agreement to participate by completing and submitting this survey. You may discontinue participation at any time without penalty. Section I. Social Shopping Activity Please answer each of the following questions. How interested are you in searching for or sharing information on hot deals, sales info, reviews or recommendations with others about a product, a service, or a company on the Internet? When you shop online, how often do you search for or share information on hot deals, sales info, reviews or recommendations with others about a product, a service, or a company on the Internet? When you shop online, how often do you search for or share information on hot deals, sales info, reviews or recommendations with others about a product, a service, or a company at the following websites?      All of the Time 1 2 3 4 5 6 7 Never Searched Regularly Searched 1 2 3 4 5 6 7 Never Searched Regularly Searched Consumer review sites (e.g., Epinions.com) 1 2 3 4 5 6 7 Online retailers‟ sites (e.g., Amazon.com, Drugstore.com) 1 2 3 4 5 6 7 Social networking weblogs (e.g., Facebook.com, Twitter.com) 1 2 3 4 5 6 7 Social shopping sites (e.g., Kaboodle.com) 1 2 3 4 5 6 7 Others (please specify :) ________________________ 1 2 3 4 5 6 7 When you shop online, how often do you search for or share reviews or recommendations with others about a product, a service, or a company at the following situations?   None of the Time Shopping for yourself Shopping for another person Never Searched Regularly Searched 1 2 3 4 5 6 7 1 2 3 4 5 6 7 88 For what product or service categories have you searched for or shared information on the Internet? (Check all that apply)              __ Computer/Computer hardware __ Computer software __ Electronics __ Automotives __ Books __ Clothing __ Music CDs __ Information goods (e.g., data, newspaper) __ Travel __ Financial __ Restaurants __ Insurance __ Other (specific: _____________________ ) Section II. Social Shopping Motivation Please indicate the likelihood that you would engage in social shopping to search/share hot deals, reviews or recommendations with others about a product, a service, or a company on the Internet in the following situations. Very Unlikely I engage in online social shopping …               Very Likely To check out the best deals. 1 2 3 4 5 6 7 To search for detailed information about the product/brand category. 1 2 3 4 5 6 7 To compare several products/brands online before making a decision. 1 2 3 4 5 6 7 To check out websites for sales and service information. 1 2 3 4 5 6 7 To look for product information that is specific to my requirements. 1 2 3 4 5 6 7 To check out company information online for products I would like to buy. 1 2 3 4 5 6 7 To look for online discounts and bargains. 1 2 3 4 5 6 7 To hear about something new and learn more about it. 1 2 3 4 5 6 7 To seek advice and solutions for my problems with a product. 1 2 3 4 5 6 7 To get a variety of information from people who have positive and negative opinions. 1 2 3 4 5 6 7 To shop online with others as a way to socialize. 1 2 3 4 5 6 7 To enjoy socializing with others when I shop online. 1 2 3 4 5 6 7 To shop online with others having a social occasion. 1 2 3 4 5 6 7 To shop online with others as a way to have a bonding experience. 1 2 3 4 5 6 7 89       To shop online with others who have similar tastes/interests. 1 2 3 4 5 6 7 To shop online with my peer group or reference group. 1 2 3 4 5 6 7 To communicate with other people who share similar shopping experiences. 1 2 3 4 5 6 7 To achieve a sense of belonging by shopping for the same products and brands that others purchase. 1 2 3 4 5 6 7 To observe what others are buying and using. 1 2 3 4 5 6 7 To purchase those products or brands that I think others will approve of. 1 2 3 4 5 6 7 Section III. Social Shopping Resources Credibility For each item below, please indicate the response that reflects your view of the product information you receive when you are in a social shopping environment. I consider other consumers' reviews or recommendations provided in a social shopping environment to be _______.           Strongly Agree relevant 1 2 3 4 5 6 7 meaningful 1 2 3 4 5 6 7 important 1 2 3 4 5 6 7 useful 1 2 3 4 5 6 7 helpful 1 2 3 4 5 6 7 clear 1 2 3 4 5 6 7 correct/accurate 1 2 3 4 5 6 7 concise 1 2 3 4 5 6 7 complete 1 2 3 4 5 6 7 consistent 1 2 3 4 5 6 7 I consider other consumers who provide information in a social shopping environment to be _____________.     Strongly Disagree Strongly Disagree Strongly Agree knowledgeable 1 2 3 4 5 6 7 competent 1 2 3 4 5 6 7 expert 1 2 3 4 5 6 7 experienced 1 2 3 4 5 6 7 For each item below, please indicate the response that reflects your view of the relationships between people in an online social shopping environment. In a social shopping environment, searching/sharing product information with others… 90 Strongly Disagree Strongly Agree      makes me feel like part of a larger community. 1 2 3 4 5 6 7 makes me feel connected to the bigger picture. 1 2 3 4 5 6 7 reminds me that everyone in the world is connected. 1 2 3 4 5 6 7 gives me new people to talk to. 1 2 3 4 5 6 7 gives me new people to contact with all the time. 1 2 3 4 5 6 7 Strongly Disagree In a social shopping environment,    Strongly Agree there are several people online I trust to help solve my problems. 1 2 3 4 5 6 7 there is someone online I can turn to for advice about making very important decisions. 1 2 3 4 5 6 7 there is someone online that I feel comfortable talking to about personal problems. 1 2 3 4 5 6 7 Section IV. Perceived Social Shopping Value Please indicate your level of agreement/disagreement with each of the following items. Social shopping that provides interactive product information and uses other consumers’ reviews or recommendations as shopping advice…              Strongly Disagree Strongly Agree enables me to find suitable products more quickly. 1 2 3 4 5 6 7 improves the quality of analysis and searching I perform to find suitable products. 1 2 3 4 5 6 7 makes the search task for products easier to complete. 1 2 3 4 5 6 7 enhances my effectiveness in finding suitable products. 1 2 3 4 5 6 7 gives me more control over the product search task. 1 2 3 4 5 6 7 allows me to accomplish more analysis than would otherwise have been possible. 1 2 3 4 5 6 7 greatly enhances the quality of my judgments. 1 2 3 4 5 6 7 conveniently supports all the various types of analysis needed to find suitable products. 1 2 3 4 5 6 7 overall, I find reviews or recommendations by other consumers useful in finding suitable products. 1 2 3 4 5 6 7 is truly a joy. 1 2 3 4 5 6 7 truly feels like an escape. 1 2 3 4 5 6 7 is enjoyable for its own sake, not just for the items I may have purchased. 1 2 3 4 5 6 7 is a good time because I am able to act on „the spur-of-themoment.‟ 1 2 3 4 5 6 7 91 Section V. Perceived Self-Efficacy Please indicate how you think social shopping affects your decision making by responding to the following items.  How do you feel the use of other consumers‟ reviews and recommendations as shopping advice affects the accuracy of your decisions? Greatly decreased decision accuracy Greatly improved decision accuracy 1 2 3 4 5 6 7  How do you feel the use of other consumers‟ reviews and recommendations as shopping advice affects the degree of certainty of your decisions? Greatly decreased decision certainty Greatly increased decision certainty 1 2 3 4 5 6 7  How do you feel the use of other consumers‟ reviews and recommendations as shopping advice affects the amount of confidence of your decisions? Greatly decreased decision confidence Greatly increased decision confidence 1 2 3 4 5 6 7 Section VI. Social Shopper’s Behavior Please think about social shopping and indicate your level of agreement/disagreement with each of the following items. Strongly Disagree While social shopping online,         Strongly Agree I would like to share some information about interesting products or shopping experiences with others. 1 2 3 4 5 6 7 I would like to share my favorite products or shopping experiences with others. 1 2 3 4 5 6 7 People ask me for my opinions about products and shopping. 1 2 3 4 5 6 7 I would like to post reviews or recommendations to persuade others to buy the products/services that I like. 1 2 3 4 5 6 7 I would like to use the “share this” or “buzz” function in a website when I find interesting products. 1 2 3 4 5 6 7 I would like to forward information about interesting products or shopping experiences to my friends. 1 2 3 4 5 6 7 I would like to forward positive reviews on a product to my friends. 1 2 3 4 5 6 7 I would like to forward negative reviews on a product to my friends. 1 2 3 4 5 6 7 92 Please think about products for which you social shop with others and indicate your level of agreement/disagreement with each of the following items. Strongly Disagree While social shopping online,        Strongly Agree consider buying the product. 1 2 3 4 5 6 7 buy the product online. 1 2 3 4 5 6 7 add the product to my wishlist. 1 2 3 4 5 6 7 add the product to shopping basket. 1 2 3 4 5 6 7 try the product in a store. 1 2 3 4 5 6 7 buy the product if I happened to see it in a store. 1 2 3 4 5 6 7 actively seek out the product in a store in order to purchase it. 1 2 3 4 5 6 7 Section VII. Demographic Information Please fill in the blank or check the appropriate response for each question about yourself.  Please indicate your gender: __Male __ Female  Please state your age (in years): _______  Please check your present marital status: __ Single, never married __ Married __ Divorced/Separated __ Widowed __ Other (please specify: ___________ )  Please check the category that most accurately identifies your ethnicity: __ White/Caucasian __ Black/African-American __ Hispanic/Latino(a) __ Asian/Pacific Islander __ Other (please clarify: ____________ )  Please check the category that most accurately identifies your education: __ Less than high school __ High school/GED __ Some college __ 2-year college degree (Associates) __ 4-year college degree (BA, BS) __ Master‟s degree __ Doctoral degree __ Professional degree (MD, JD) __ Other (please specify: __________ )  Please write approximate total annual household income, before taxes: $ ___________ per year 93 APPENDIX C Frequency Statistics for Information Seeking Behavior of the Sample 94 Figure 9. Information Search/Sharing Interest 7=All of the time 6 5 4 3 2 1=None of the time Frequency 140 120 100 80 60 40 20 0 Figure 10. Information Search/Sharing Activity 120 80 60 40 20 95 7=Regularly searched 6 5 4 3 2 0 1=Never searched Frequency 100 Figure 11. Information Search/Sharing at a Certain Website 160 140 120 Consumer review sites Frequency 100 80 Online retailer sites 60 Social networking weblogs 40 Social shopping sites 20 7=Regularly searched 6 5 4 3 2 1=Never searched 0 Figure 12. Information Search/Sharing at a Certain Situation 160 140 Shopping for yourself 100 80 60 Shopping for another person 40 20 96 7=Regularly searched 6 5 4 3 2 0 1=Never searched Frequency 120 97 Financial Insurance Information goods Automotives Computer software Clothing Travel Restaurants Computer/computer hardware Books Electronics Frequency Figure 13. Product or Service Categories 300 250 200 150 100 50 0 APPENDIX D Covariance Matrix 98 Table 8. Covariance Matrix for SEM Path Analysis V1 V2 V3 V4 V5 V6 V7 V8 V9 V10 V11 V1 1.382 V2 .749 2.135 V3 .810 .837 1.308 V4 .729 1.108 1.082 1.495 V5 .712 1.103 1.022 1.197 1.416 V6 .661 1.699 .864 1.119 1.130 2.225 V7 .657 1.664 .853 1.107 1.141 1.889 2.239 V8 .930 .943 1.004 .994 .988 .983 .967 1.363 V9 .773 1.605 .895 1.190 1.137 1.721 1.603 1.119 2.235 V10 .712 .842 .888 .876 .869 .838 .820 .945 .881 1.138 V11 .939 1.325 1.016 1.104 1.163 1.351 1.323 1.163 1.428 1.016 1.989 V12 .858 .965 .903 .928 .944 1.000 .955 1.012 1.076 .851 1.159 V12 1.253 V1= Information-oriented motives; V2= Socially-oriented motives; V3= Relevance; V4= Clarity; V5= Expertise; V6= Bridging; V7= Bonding; V8= Utilitarian value; V9= Hedonic value; V10= Self-efficacy; V11= WOM intention; V12= Purchase intention 99 BIBLIOGRAPHY 100 BIBLIOGRAPHY 5 social shopping trends shaping the future of ecommerce. (2010). PowerReviews. Retrieved January 10, 2011, from http://www.powerreviews.com/case-studies.php Ajzen, I. 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