Understanding continuance intention to use online to offline (O2O) apps
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RESEARCH PAPER
Understanding continuance intention to use online to offline (O2O) apps Chin-Lung Hsu 1 & Judy Chuan-Chuan Lin 2 Received: 30 November 2018 / Accepted: 17 June 2019 # Institute of Applied Informatics at University of Leipzig 2019
Abstract O2O commerce is a new business model combining online shopping and offline transactions. While many reports indicate the large potential size of the O2O market, little is known about users’ continuance intention to use. This study applies an expectation confirmation model (ECM) that incorporates perceived hedonic benefits, product information intensity and transaction costs as belief-related constructs to predict users’ continuance intention to use O2O apps. The proposed model was empirically evaluated using survey data collected from 333 users concerning their perceptions of O2O apps. The results indicated that confirmation of O2O app usage experience was positively related to both perceived benefits such as utilitarian and hedonic benefits and satisfaction. Perceived benefits, satisfaction and transaction costs were found to have a direct impact on continuance intention. Specifically, there was a significant difference between task-oriented O2O apps users and entertainment-oriented O2O apps users. The results may provide further insights into O2O app marketing strategies. Keywords O2O . Mobile application . Expectation confirmation model . Continuance intention . Transaction cost
Introduction With the maturity of mobile technologies and the increasing number of smartphone users, the prevalence of online to offline (O2O) commerce service has increased in recent years. O2O services refer to commercial activities that attract users to make online purchases for products/services they later use/ enjoy in physical establishments. One example is Uber, a transportation network company which provides an online app through which users summon and pay for a car ride. Responsible Editor: Robert Harmon * Judy Chuan-Chuan Lin [email protected] Chin-Lung Hsu [email protected] 1
Department of Information Management, National Taipei University of Business, No.321, Sec. 1, Jinan Rd., Zhongzheng District, Taipei 100, Taiwan, Republic of China
2
Department of Computer Science and Information Management, Soochow University, 56 Kueiyang Street, Section 1, Taipei 100, Taiwan, Republic of China
Other commonly cited O2O-based cases include Airbnb, Groupon, Walmart, Starbucks, Pokemon GO and EZTable (a well-known online restaurant reservation service in Taiwan). Unlike e-commerce consumers who order online and then wait for goods to be delivered directly to them through logistics providers, O2O commerce involves engaging with consumers online through various ways, after which the users engages with the product/service in physical stores or other real-world contexts. While it may appear that the Internet has become a pervasive presence in our daily lives, according to the US Commerce Department, more than 90% of purchases (over US$4 trillion annually) still take place offline (
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