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Internet
Marketing
Involvement and
Consumer
Behavior

Presenter: Anne Chen
Instructor: Dr. Pi-Ying Teresa Hsu
Date: October 15, 2012




                             1
Citation
Wu, S. (2002). Internet Marketing
Involvement and Consumer Behavior,
Asia Pacific Journal of Marketing and
Logistics, 14(4), 36-53.




                                        2
Contents
  Introduction
    Purpose
Literature Review

  Methodology

     Result
   Conclusion

   Reflection

                    3
Introduction

The level of consumer involvement
in a product category or service is a
major determinant of online
purchase or usage behavior.




                                        4
Purpose
To determine the relationship among
involvement antecedents of Internet
marketing, measured involvement
degree related constructs, and
consequences of consumer behavior




                                      5
Literature
 Review


             6
Involvement result is the
customer’s ultimate concern
with a purchase or
consumption experience.


               (Bolfing,1988)


                                7
Involvement included
experiencing a number of positive
results such as the rewards
inherent in the product and the
product’s expressive values.


    (Holbrook &
Hirschman,1982)
                                8
Figure1. Framework


Antecedents:                         Consumer behavior:

a.Personal                           a.Purchase decision
characteristics                      b.Items Purchased
b.Lifestyle            Degree of     c.Amount of money
c.Perception needs     involvement   spent
d.Situations                         d.Volume of purchase
                                     e.Trade mode




        (Andrews, Durvasula ,& Akher,1990)

                                                      9
Hypotheses
H1: The degree of Internet marketing involvement
    is significantly related with consumer’s
    personal characteristics.

H2: The degree of Internet marketing involvement
    changes significantly with different consumers’
    lifestyles.

H3: The degree of Internet marketing involvement
    changes significantly with different consumers’
    perception needs.


                                                      10
Hypotheses
H4: The degree of Internet marketing involvement
    is significantly related with situations.

H5: Consumer behavior is significantly related with
    the degree of Internet marketing involvement.




                                                      11
Methodology



              12
Participant

Respond   Invalid   Valid
  ents
  620       20      600




                            13
Table 1. Cluster of involvement degree


Involvement sore   Number   Percentage   Involvement degree cluster


     20-69           151      25.2%                 Low


     70-86           285      47.5%            Intermediate


    87-140           164      27.3%                High


    Measure a person’s involvement in Internet marketing


                                                                  14
Result



         15
H1: The degree of Internet marketing involvement is significantly related with
   consumer’s personal characteristics.

                    Table 2. Personal characteristics analysis
                                                       Involvement degree cluster
    Char act er ist ics    Chi-squar e
                                               Low          I nt er mediat e        High
          it em                (p)
                          1.887                                                Graduate,
    Education                            High school       College
                          (0.000)**                                            College
                                                                               Student,
                          58.462         Laborers,
    Occupation                                             Student             Business
                          (0.000)**      Service workers
                                                                               professional
                                         Middle (58.9%                         High (48.8%
                                         $ 550             Low (71.6%          $ 550
    Income (US $          29.469         below/per         $ 550               below/per
    /per month)           (0.000)**      month, 31.8%      below/per           month, 38.4%
                                         $ 551-1150/per    month)              $ 551-1150/per
                                         month)                                month)
    **: P<0.01

      Internet marketing involvement was significantly of consumer
      personal characteristics.                                                               16
H2: The degree of Internet marketing involvement changes significantly with
    different consumers’ lifestyles.


        Table 3. Factor analysis and reliability for lifestyle

                                             Cumulat ive
                                                            Cr onbach’s
          Fact or name         Eigenvalue    per cnet of
                                                               alpha
                                              var iance
  1. Fashion and ego           2.591        14.395          0.7060
  2. Independence and
                               2.214        26.696          06523
     freedom
  3. Family life               1.583        35.488          0.3777
  4. Information inquiry and
                               1.556        44.131          0.2096
     arbitrary
  5. Effect and excitement     1.274        51.210          0.0892

            The Cronbach’s alpha of fifth factor was too low          17
H2: The degree of Internet marketing involvement changes significantly with
       different consumers’ lifestyles.

                     Table 4. Analysis of variance for lifestyle
                         I nvolvement degr ee clust er
      Fact or name        Low      I nt er media    High                     Schef f
                                                               F        P        e
                           (1)        t e (2)        (3)
                                                                               t est
    1. Fashion and                                                           (1,3)
                         -1.6388   -0.0703         0.2730   9.083    0.000**
       ego                                                                   (2,3)
    2. Independence                                                            (1,3)
                         0.01702 -0.2060           0.3422   16.480   0.000**
        and freedom                                                            (2,3)
    3. Family life       -0.1536   -0.0177         0.1722   4.303    0.014*    (1,3)
    4. Information
        inquiry and      0.1001    -0.0149         -0.0664 1.150     0.317
       arbitrary
    **: P<0.01, *:P<0.05

        Internet marketing involvement differed significantly in relation
        to three different lifestyle factors.                           18
H3: The degree of Internet marketing involvement changes significantly with
    different consumers’ perception needs.


 Table 5. Factor analysis and reliability for perception needs

                                  Cumulat ive per cent       Cr onbach’s
  Fact or name       Eigenvalue
                                     Of var iance               alpha

1. Safe and trust
                    2.595         15.263                 0.7318

2. Knowledge and
   understanding    2.374         29.231                 0.6951

3. Convenience
   and speed        2.051         41.296                 0.6715

4. Effective
                    1.760         51.647                 0.5199


           Four perception need factors by using factor analysis
                                                                           19
H3: The degree of Internet marketing involvement changes significantly with
       different consumers’ perception needs.

            Table 6. Analysis of variance for perception needs
                         I nvolvement degr ee chust er

                          Low     I nt er medi    High                        Schef
     Fact or name                      at e                  F        P          fe
                           (1)                     (3)
                                        (2)                                    t est
                                                                             (1,3)
    1. Safe and trust   -0.4551   0.1453         0.1673   22.432   0.000**
                                                                             (2,3)
    2. Knowledge and                                                         (1,3)
                        0.0180    -0.1920        0.3158   14.023   0.000
       understanding                                                         (2,3)
    3. Convenience
                        -0.0496   -0.00275       0.0837   1.273    0.281
       and speed

                                                                             (1,3)
    4. Effective        -0.1552   -0.1627        0.4246   21.776   0.000
                                                                             (2,3)
    **: P<0.01

      Internet marketing involvement differed significantly in relation
      to three perception need factors.                               20
H4: The degree of Internet marketing involvement is significantly related
       with situations.

                             Table 7. Situation analysis
                              I nvolvement degr ee clust er
     Sit uat io     Chi-                       I nt er media
         ns        squar e          Low                              High
                                                     te
      I t em         (p)
                                Home          Home
                                                               Home (49.4%)
     Online       24.417        (55.6%)       (50.9%)
                                                               School (25.6%)
     location     (0.002)**     School        School
                                                               Office (17.7%)
                                (27.8%)       (33.3%)
     Online                                         15 hours blow
                         15 hours     15 hours
     frequency 30.589                               (49.4%)
                         below        below
     (per      (0.000)**                            16-30 hours
                         (71.5%)      (71.5%)
     week)                                          (29.9%)
               24.487    Kimo, Yahoo Kimo, Yahoo Kimo, Yahoo
     WebInternet marketing involvement was significantly related with
          site
               (0.004)** (69.5%)      (60.4%)       (68.3%)
         the situation.
                                                                                21
H5: Consumer behavior is significantly related with the degree of Internet
     marketing involvement.
                          Table 8. Consumer behavior analysis
                              I nvolvement degr ee clust er
   Consumer          Chi-squar e
                                           Low          I nt er mediat e        High
 Behavior it em          (p)
Online            26.913
                                    9.7%              14.8%                22.1%
purchase rate     (0.000)**
                                                      High freight
                                                                           High freight
Reasons for not   102.171           High freight      charge (34.0%),
                                                                           charge (34.0%),
shopping online   (0.000)**         charge (48.3%)    Long delivery
                                                                           Unsafe (31.1%)
                                                      time (18.2%)
Amount of
                  62.845            US $ 28 below     US $ 29-86           US $ 29-86
money/per
                  (0.000)**         (57.1%)           (48.39%)             (54.72%)
month
                                                      2-7 times
Purchase
                  59.304            Once and below    (41.94%),            2-7 times
frequency/per
                  (0.000)**         (50%)             8-10 times           (59.62%)
month
                                                      (38.71%)

   Internet marketing involvement correlating to consumer behavior
                                                                                       22
H5: Consumer behavior is significantly related with the degree of Internet
       marketing involvement.
                      Table 8. Consumer behavior analysis
                                  I nvolvement degr ee clust er

       Consumer         Chi-squar e
                                              Low           I nt er mediat e        High
     Behavior it em         (p)
                                                                               Credit card
                      14.677            Credit card
    Pay mode                                               Mail (33.68%)       (35.98%),
                      (0.023)**         (33.77%)
                                                                               Mail (35.37%)
    Purchase                                                                   Book (48.17%),
                      31.813            Book (41.06%),     Book (37.2%),
    product                                                                    Grocery
                      (0.001)**         Grocery(31.13%)    Grocery (23.51%)
    categories                                                                 (17.68%)
                                                                               Product
                                        Product            Product             information
                                        information        information         (35.37%)
                                        (24.5%)            (31.93%)            Company
    Service           26.258
                                        Promotion          Company image       image
    acquisition       (0.003)**
                                        (23.84%)           (19.65%)            (17.07%)
                                        Customer service   Promotion           Customer
                                        (21.19%)           (19.3%)             service
                                                                               (16.46%)
     Internet marketing involvement correlating to consumer behavior
                                                                                             23
Conclusion



             24
This study attempted to identify all
influence factors and respondent behavior
to Internet marketing.

Such research efforts will contribute to
enrich our understanding of Internet
marketing related factors and frameworks.




                                            25
Future research should apply the
framework developed in this paper to
other products.

Introduce additional variables to identify
more relationships and reach more
effective results.




                                             26
Reflection



             27
Internet marketing is always involvement
consumer behavior.


Whenever consumer’s doing, involvement
result concern with a purchase decision.




                                           28
Thank you for listening.   29

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Internet Marketing Involvement Impacts Consumer Behavior

  • 1. Internet Marketing Involvement and Consumer Behavior Presenter: Anne Chen Instructor: Dr. Pi-Ying Teresa Hsu Date: October 15, 2012 1
  • 2. Citation Wu, S. (2002). Internet Marketing Involvement and Consumer Behavior, Asia Pacific Journal of Marketing and Logistics, 14(4), 36-53. 2
  • 3. Contents Introduction Purpose Literature Review Methodology Result Conclusion Reflection 3
  • 4. Introduction The level of consumer involvement in a product category or service is a major determinant of online purchase or usage behavior. 4
  • 5. Purpose To determine the relationship among involvement antecedents of Internet marketing, measured involvement degree related constructs, and consequences of consumer behavior 5
  • 7. Involvement result is the customer’s ultimate concern with a purchase or consumption experience. (Bolfing,1988) 7
  • 8. Involvement included experiencing a number of positive results such as the rewards inherent in the product and the product’s expressive values. (Holbrook & Hirschman,1982) 8
  • 9. Figure1. Framework Antecedents: Consumer behavior: a.Personal a.Purchase decision characteristics b.Items Purchased b.Lifestyle Degree of c.Amount of money c.Perception needs involvement spent d.Situations d.Volume of purchase e.Trade mode (Andrews, Durvasula ,& Akher,1990) 9
  • 10. Hypotheses H1: The degree of Internet marketing involvement is significantly related with consumer’s personal characteristics. H2: The degree of Internet marketing involvement changes significantly with different consumers’ lifestyles. H3: The degree of Internet marketing involvement changes significantly with different consumers’ perception needs. 10
  • 11. Hypotheses H4: The degree of Internet marketing involvement is significantly related with situations. H5: Consumer behavior is significantly related with the degree of Internet marketing involvement. 11
  • 13. Participant Respond Invalid Valid ents 620 20 600 13
  • 14. Table 1. Cluster of involvement degree Involvement sore Number Percentage Involvement degree cluster 20-69 151 25.2% Low 70-86 285 47.5% Intermediate 87-140 164 27.3% High Measure a person’s involvement in Internet marketing 14
  • 15. Result 15
  • 16. H1: The degree of Internet marketing involvement is significantly related with  consumer’s personal characteristics. Table 2. Personal characteristics analysis Involvement degree cluster Char act er ist ics Chi-squar e Low I nt er mediat e High it em (p) 1.887 Graduate, Education High school College (0.000)** College Student, 58.462 Laborers, Occupation Student Business (0.000)** Service workers professional Middle (58.9% High (48.8% $ 550 Low (71.6% $ 550 Income (US $ 29.469 below/per $ 550 below/per /per month) (0.000)** month, 31.8% below/per month, 38.4% $ 551-1150/per month) $ 551-1150/per month) month) **: P<0.01 Internet marketing involvement was significantly of consumer personal characteristics. 16
  • 17. H2: The degree of Internet marketing involvement changes significantly with different consumers’ lifestyles. Table 3. Factor analysis and reliability for lifestyle Cumulat ive Cr onbach’s Fact or name Eigenvalue per cnet of alpha var iance 1. Fashion and ego 2.591 14.395 0.7060 2. Independence and 2.214 26.696 06523 freedom 3. Family life 1.583 35.488 0.3777 4. Information inquiry and 1.556 44.131 0.2096 arbitrary 5. Effect and excitement 1.274 51.210 0.0892 The Cronbach’s alpha of fifth factor was too low 17
  • 18. H2: The degree of Internet marketing involvement changes significantly with  different consumers’ lifestyles. Table 4. Analysis of variance for lifestyle I nvolvement degr ee clust er Fact or name Low I nt er media High Schef f F P e (1) t e (2) (3) t est 1. Fashion and (1,3) -1.6388 -0.0703 0.2730 9.083 0.000** ego (2,3) 2. Independence (1,3) 0.01702 -0.2060 0.3422 16.480 0.000** and freedom (2,3) 3. Family life -0.1536 -0.0177 0.1722 4.303 0.014* (1,3) 4. Information inquiry and 0.1001 -0.0149 -0.0664 1.150 0.317 arbitrary **: P<0.01, *:P<0.05 Internet marketing involvement differed significantly in relation to three different lifestyle factors. 18
  • 19. H3: The degree of Internet marketing involvement changes significantly with different consumers’ perception needs. Table 5. Factor analysis and reliability for perception needs Cumulat ive per cent Cr onbach’s Fact or name Eigenvalue Of var iance alpha 1. Safe and trust 2.595 15.263 0.7318 2. Knowledge and understanding 2.374 29.231 0.6951 3. Convenience and speed 2.051 41.296 0.6715 4. Effective 1.760 51.647 0.5199 Four perception need factors by using factor analysis 19
  • 20. H3: The degree of Internet marketing involvement changes significantly with  different consumers’ perception needs. Table 6. Analysis of variance for perception needs I nvolvement degr ee chust er Low I nt er medi High Schef Fact or name at e F P fe (1) (3) (2) t est (1,3) 1. Safe and trust -0.4551 0.1453 0.1673 22.432 0.000** (2,3) 2. Knowledge and (1,3) 0.0180 -0.1920 0.3158 14.023 0.000 understanding (2,3) 3. Convenience -0.0496 -0.00275 0.0837 1.273 0.281 and speed (1,3) 4. Effective -0.1552 -0.1627 0.4246 21.776 0.000 (2,3) **: P<0.01 Internet marketing involvement differed significantly in relation to three perception need factors. 20
  • 21. H4: The degree of Internet marketing involvement is significantly related  with situations. Table 7. Situation analysis I nvolvement degr ee clust er Sit uat io Chi- I nt er media ns squar e Low High te I t em (p) Home Home Home (49.4%) Online 24.417 (55.6%) (50.9%) School (25.6%) location (0.002)** School School Office (17.7%) (27.8%) (33.3%) Online 15 hours blow 15 hours 15 hours frequency 30.589 (49.4%) below below (per (0.000)** 16-30 hours (71.5%) (71.5%) week) (29.9%) 24.487 Kimo, Yahoo Kimo, Yahoo Kimo, Yahoo WebInternet marketing involvement was significantly related with site (0.004)** (69.5%) (60.4%) (68.3%) the situation. 21
  • 22. H5: Consumer behavior is significantly related with the degree of Internet marketing involvement. Table 8. Consumer behavior analysis I nvolvement degr ee clust er Consumer Chi-squar e Low I nt er mediat e High Behavior it em (p) Online 26.913 9.7% 14.8% 22.1% purchase rate (0.000)** High freight High freight Reasons for not 102.171 High freight charge (34.0%), charge (34.0%), shopping online (0.000)** charge (48.3%) Long delivery Unsafe (31.1%) time (18.2%) Amount of 62.845 US $ 28 below US $ 29-86 US $ 29-86 money/per (0.000)** (57.1%) (48.39%) (54.72%) month 2-7 times Purchase 59.304 Once and below (41.94%), 2-7 times frequency/per (0.000)** (50%) 8-10 times (59.62%) month (38.71%) Internet marketing involvement correlating to consumer behavior 22
  • 23. H5: Consumer behavior is significantly related with the degree of Internet  marketing involvement. Table 8. Consumer behavior analysis I nvolvement degr ee clust er Consumer Chi-squar e Low I nt er mediat e High Behavior it em (p) Credit card 14.677 Credit card Pay mode Mail (33.68%) (35.98%), (0.023)** (33.77%) Mail (35.37%) Purchase Book (48.17%), 31.813 Book (41.06%), Book (37.2%), product Grocery (0.001)** Grocery(31.13%) Grocery (23.51%) categories (17.68%) Product Product Product information information information (35.37%) (24.5%) (31.93%) Company Service 26.258 Promotion Company image image acquisition (0.003)** (23.84%) (19.65%) (17.07%) Customer service Promotion Customer (21.19%) (19.3%) service (16.46%) Internet marketing involvement correlating to consumer behavior 23
  • 25. This study attempted to identify all influence factors and respondent behavior to Internet marketing. Such research efforts will contribute to enrich our understanding of Internet marketing related factors and frameworks. 25
  • 26. Future research should apply the framework developed in this paper to other products. Introduce additional variables to identify more relationships and reach more effective results. 26
  • 28. Internet marketing is always involvement consumer behavior. Whenever consumer’s doing, involvement result concern with a purchase decision. 28
  • 29. Thank you for listening. 29

Editor's Notes

  1. The PII measure