Pleasure of Product Browsing on Facebook Affects Purchase Intention

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PLEASURE OF PRODUCT BROWSING ON FACEBOOK

AFFECTS PURCHASE INTENTION

Prepared by:Mehrdad Beyaati CGA120002

MBA Final Research ProjectJuly 2014

FACULTY OF BUSINESS AND ACCOUNTANCYGRADUATE SCHOOL OF BUSINESS

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Presentation Outline

• Motivation Theories• Extrinsic and Intrinsic Motivational Factors• Pleasure of Product Browsing

• Conclusions• Implications• Suggestions for Future Research

Findings (Collected Data)

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• SNSs are global phenomena

• Free services to share Videos, Photos, Texts, News, Trends

• Revolutionizing the way of interaction

• Opportunities (win-win situation)

Significance of SNSs in Malaysia and why Facebook?

• Background• Problem Statement• Research Objectives & Questions

INTRODUCTION

Facts Percentage Date

Average Spent time on SNSs 32.3% In March 2013

Visited Facebook 82.3% From 2012-2013

Purchased sth. after sharing or liking on SNSs

38% March 2013

Not intended to Purchase after visiting SNSs

62% March 2013

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• 62% of SNS users do not intend to purchase after visiting SNSs

• Scepticism among many small and medium size businesses

• Risks: Loss of Control & Not Enough ROI

Key to Success:

• SNSs are consumers-oriented arenas (Integral part)

• Understand consumers’ needs, preferences and tastes (motives)

• Fine-tune SNS strategies to attract potentials and manage users

• Ignorance to understand consumers’ behaviours (Affective Factors)

• Failure in promoting products and services


INTRODUCTION

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• In general, the objectives are to identify the effective motivations lead consumers to have pleasure of browsing on Facebook and purchase intention and to assess whether the pleasure may lead to purchase intention or not. Accordingly, the following research questions are set:


INTRODUCTION

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• Motivation theories that explore on consumer behaviour and psychology (to examine the probable influence of motivations on pleasure of product browsing on SNSs and purchase intention)


LITERATURE REVIEW

Theories discussed in the study

Instinct Theory of Motivation

Incentive Theory of Motivation

Drive Theory of Motivation

Arousal Theory of Motivation

Pleasure-Arousal-Dominance (PAD)

Theory of Reasoned Action (TRA)

Technology Acceptance Model (TAM)

Self-Determination Theory (SDT)

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• Ext. motivation refers to doing something because it leads to a separable outcome outside the activity itself affect the performance of the activity.

• Int. motivation refers to doing something because it is inherently interesting or enjoyable when doing an activity is for its own sake.

• Underlying ext./int. motivational factors from different literature (reconsider how different researchers discussed these relevant factors to pleasure and purchase intention on SNSs)

Factors that may affect acceptance and usage of IS (Considered in diff. literature)

Extrinsic Motivation Intrinsic Motivation

√ Perceived Usefulness Entertainment √

√ Convenience Socializing √

√ Complementarity Curiosity √

Networking Trend Discovery

Collecting Information Adventure/Explore

Cost saving Value


LITERATURE REVIEW

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• Pleasure (one of three factors in the PAD model widely used in several related studies)• Pleasure can be measured as the range of responses received from respondents generally

report their feelings as happy or unhappy, pleased or annoyed, satisfied or dissatisfied.

• Kim et al. (2009) assumed the relationships between pleasure and IS continuance intention and found a positive significant influence.

• Yeon Ju et al. (2011) developed a research framework and discussed the positive relationships between Extrinsic/Intrinsic motivations, Pleasure and Behavioural Intention to use SNS.

Extrinsic Motivation

Intrinsic Motivation

PleasureBehavioral

Intention to use SNS


LITERATURE REVIEW

New Trend concerning Facebook in Literatures:

Online transaction through Facebook (early stage)

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• This study develops the research framework based on the adopted following models:

(1) “Motivation-Behavioural Intention”,

(2) “Motivation-Emotional Response”,

(3) “Emotional Response-Behavioural Intention”,

• Development of the research framework• Development of hypotheses

Hypotheses & Research Framework


•USF•COM•CON

Intrinsic Motivation•ENT•CUR•SOC

Pleasure of product browsing

on companies’ Facebook pages

Purchase Intention


•Usefulness

•Complementarity

•Convenience

Pleasure of product browsing on companies’

Facebook pages

Purchase Intention


•Entertainment

•Curiosity

•Convenience

H1a

H1b

H1c

H3a

H3b

H3c

H2a

H2b

H2c

H4a

H4b

H4c

H5

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• Cross-sectional research - primary source of data using questionnaire survey.

• Sampling technique used is based on convenience sampling (Based on non-probability sampling and personal judgment or convenience)

• The selection of respondents was based on 2 primary questions:

1) Facebook Account(s)

2) Experience of product browsing on companies’ Facebook pages

• Questionnaire consists of closed-ended questions and scaled type statements based on 5-point Likert Scale and contains 6 sections

• Sampling Design• Instrument Design• Survey

RESEARCH METODOLOGY

Distribution of Questionnaires

Response Rate % Response Rate

475 321 67.5

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Findings (Collected Data)

Development(Introduction)

(Literature Review)(Hypotheses) (Framework)

(Sampling Design)

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• Demographic Characteristics• Usage Descriptive Statistics

RESEARCH METODOLOGY

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• Demographic Characteristics• Usage Descriptive Statistics

RESEARCH METODOLOGY

49.5% 42.1% 79% “rarely & almost never” purchase after

browsing on FB

70% believe WOM can

influence their decisions

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• Data Analysis Techniques • Data Preparation• Pearson Correlation• Hypothesis Testing

DATA ANALYSIS AND FINDINGS

• Preliminary stage: SPSS Version 21 software used to analyze • Subsequently: SmartPLS ( to further analyse the research framework• This study uses Structural Equation Modelling (SEM) to do the

analysis on the data sample size of 321• The following tests done to check the raw data for any errors occurred

Tests Results

Normality of Data √

Linearity √

Homoscedasticity √

Multicollinearity √

Examination of Outliers √

Validity √

Reliability √

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Constructs USF COM CON ENT CUR SOC PPB PI

USF 1.000

COM 0.407** 1.000

CON 0.369** 0.382** 1.000

ENT 0.313** 0.351** 0.226** 1.000

CUR 0.398** 0.427** 0.403** 0.436** 1.000

SOC 0.355** 0.350** 0.319** 0.454** 0.450** 1.000

PPB 0.389** 0.430** 0.408** 0.479** 0.479** 0.549** 1.000

PI 0.460** 0.391** 0.342** 0.396** 0.367** 0.462** 0.538** 1.000N = 321

* Coefficient, r± 0.1 to ± 0.3 (Weak),± 0.3 to ± 0.5 (Medium),± 0.5 to ± 1.0 (Strong),

** Correlation is significant at the 0.01 level (2-tailed), p< 0.01


• Data Analysis Techniques • Data Preparation• Pearson Correlation• Hypothesis Testing

• strong, positive correlation btw pleasure and purchase Intention.

• Increases in pleasure of product browsing on companies’ Facebook pages were correlated with increases in purchase intention.

• It implies that as much as businesses increase the pleasure of product browsing for their consumers on Facebook, they can increase their consumers’ purchase intention.

• Strong, positive correlation btw socializing and pleasure of product browsing on companies’ Facebook pages

• Increases in socializing were correlated with increases in pleasure of product browsing on companies’ Facebook pages.

• As much as companies increase the socializing aspect of their Facebook pages, they can increase the pleasure of product browsing for their consumers.

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• Data Analysis Techniques • Data Preparation• Pearson Correlation• Hypotheses Testing


•USF•COM•CON


•ENT•CUR•SOC

Pleasure of product browsing

on companies’ Facebook pages

R²= 0.532

Purchase Intention

R²= 0.433

H2 (0.204) *

H4 (0.241) *

H5 (0.308) *

H3 (0.573) **

H1 (0.221) *


•Usefulness

•Complementarity

•Convenience

Pleasure of product browsing on companies’

Facebook pages

Purchase Intention


•Entertainment

•Curiosity

•Socializing

H1a (0.112)

H1b (0.011)

H1c (0.133)

H3a (0.246)*

H3b (0.175)

H3c (0.301)*

H2a (0.247)*

H2b (-0.029)

H2c (0.046)

H4a (0.108)

H4b (0.036)

H4c (0.165)

H5 (0.175)

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• Both extrinsic and intrinsic motivations have positive effect on purchase intention as well as pleasure of product browsing on companies’ Facebook pages.

• Pleasure has also a positive effect on consumers to have purchase intention.

• The main finding is that perceived complementarity had no positive effect on purchase intention. As a result, hypothesis 2b is not supported.

• All the selected intrinsic motivation factors had positive effect on both pleasure and purchase intention.

• Convenience is the most correlated extrinsic motivation factor that affects consumers to have pleasure on companies’ Facebook pages.

• Perceived usefulness is the most significant extrinsic motivation factor that affects consumers to have purchase intention.

• Socializing factor has the most significant influence on consumers to experience pleasure from among the intrinsic motivation factors. (It indicates that consumers are highly motivated to use companies’ Facebook pages to get latest news on products, to share and exchange information with others and engage with other shoppers on this SNS platform.

• Entertainment and curiosity are the second and third significant factor of intrinsic motivation that affect consumers to have pleasure and purchase intention.

• Pleasure of product browsing on companies’ Facebook pages has a positive effect on consumers’ purchase intention. (It points out that if businesses create pleasurable platform on their companies’ Facebook pages then they can affect their consumers to have more purchase intention.)

• It is in line with the idea presented by Kim et al. (2009) that positive emotional response can cause “approach” behavioural intention.


DISCUSSION, CONCLUSION AND

RECOMMENDATIONS

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Implications :

Business administrators can comprehend that



RECOMMENDATIONS

intrinsic motivation > extrinsic motivation (driving role)

Intrinsic Motivation Factors

Business Administrators must

Socializing • must consider socializing as the key element in developing their strategies

• Deals Relationships (Yadav et al., 2012)

Entertainment

pleasure

must consider the entertaining aspect of their pages on Facebook to encourage consumers to use their pages in order to pass their time and have fun while browsing their products.

Trend in Marketing

purchase intention

pleasure

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RECOMMENDATIONS

Extrinsic Motivation Factors

Business Administrators must

Convenience Provide Availability of related information on products’ specifications, features and trends on their Facebook pages. can let the pleasure of product browsing anywhere at any time. Comfort of consumers’ own space and schedule must be enhanced.

Perceived usefulness develop their Facebook pages in a way to provide facilities to make decisions more quickly and easily with better, useful information to enable consumers make better decisions that lead to purchase intention.


pleasure

purchase intention

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• This study reviewed the literature and selected the constructs from different researchers in the field of IS and consumer behaviour.

• This is probable to add and examine some other beneficial constructs to the study from other related fields.

• Other instruments to collect data such as interview and case study

• Since nearly half of the respondents (>49.5%) also use “Instagram”; therefore, it suggests to examining the motivational factors of consumers in using companies’ Instagram pages in the future.



RECOMMENDATIONS

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Thank You for Your Patience

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REFERENCES

• Giannakos, C., Giotopoulos, and Vlamos. (2012). Using facebook out of habit, Behavior & Information Technology. doi: 10.1080/0144929X.2012.659218, 2012

• comScore. (March 2013, Mar12-Mar13). Southeast Asia Digital Future in Focus 2013. Key Insights and Digital trends from Southeast Asia.

• Mangold, W. G., & Faulds, D. J. (2009). Social media: The new hybrid element of the promotion mix. Business Horizons, 52(4), 357-365.

• Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340.

• Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1992). Extrinsic and intrinsic motivation to use computers in the workplace1. Journal of applied social psychology, 22(14), 1111-1132.

• Harris, L., & Dennis, C. (2011). Engaging customers on Facebook: Challenges for e‐retailers. Journal of Consumer Behaviour, 10(6), 338-346.

• Yadav, V., Arora, M., as Editior, J., & Verification, C. (2012). The product purchase intentions in Facebook using analytical hierarchical process. A journal of radix international education and research consortium, 1(4).