Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 The Generation Gaps of Smartphone Usage Behaviour in Taiwan Kee Kuo Chen*, Shang-Hsing Hsieh** and Wen-Lai Shen*** To investigate generation gaps of smartphone usage behavior in Taiwan, a questionnaire including 24 items has been designed and used to collect required data from students and faculties of a University in Taiwan. Among the total of 183 complete returned responses, 2.7% of which answered they have not possessed a smartphone. After the validity of this scale has been examined, usage behavior is classified into three patterns: entertainment, life and work, and communication by exploratory factor analysis. Multivariate analysis of variance shows that only entertainment behavior pattern has a significant difference among generations. The findings from further analysis are as follows: (1) the means of entertainment patterns can be separated into two groups: group 1 which consists of Baby Boomers and Generation-X and group 2 which consists of Generation-Y and Generation-Z. (2) item “roam in Facebook or Twitter” has the highest score while the item “watch TV program” has the lowest score among the seven entertainment behavior items, (3) these same phenomena appeared in all generations. (4) item “dial and answer calls” is the main function of smartphone for. (5) the results imply that the older customers including baby boomers and Generation-X are hardly benefiting from the entertainment pattern of possessing a smartphone. (6) the result also shows an interesting fact that Generation-Z seems to be too young to care the usage of cloud function in their smartphone. 1. Introduction Smartphone usage has proliferated in recent years. Most of developed and developing countries in the world, including Taiwan, have enjoyed the rapid deployment and high penetration of smartphones. Knowing customer usage behavior pattern is very important to making strategic marketing plans as well as for designing the next generation of devices for firms. Business strategies such as mobile phone manufacturers, application developers, and relevant stakeholders in the industry would greatly appreciate the information as they can be used to determine their marketing strategies, and plans for the future directions. Smartphones, nowadays, is one of the most popular intelligent consumer products in the world. Smartphones that offer advanced capabilities, such as the ability to download apps makes is an intelligent device just like a PC. However, smartphones involve hardware and software (as a technological innovation), both have a low level of observability. Most of smartphone users still learn how to utilize their smartphones effectively after their purchase. Purchasing a smartphone is only a "means to an end", with the end being the attainment of benefits from utilizing smartphone (Wilkie, 1990). After all, no matter how smart the smartphone; it will not meet the expected benefits and effectiveness, *Dr. Kee Kuo Chen, corresponding author, Department of Marketing and Logistics Management, Yu Da University, Taiwan. Email: kkchen@ydu.edu.tw **Dr. Shang-Hsing Hsieh, Department of Marketing and Logistics Management, Yu Da University, Taiwan. Email: shhsieh@ydu.edu.tw ***Mr. Wen Lai Shen, graduate student, Department of Marketing and Logistics Management, Yu Da University , Taiwan. Email: lailai_shen@yahoo.com.tw Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 if it is not being utilized. To many customers, utilizing intelligent products effectively need to take time and effort even new intelligent products are considered more autonomous than before (Rijsdijk et al., 2007). The usage behaviors of smartphones would influence the customers‟ post-purchase evaluation (Stokmans, 1998), which, in turn, would influence repurchase intention. The subject of usage behavior will become even more important to the field of marketing management than before because more and more intelligent products will be used in the future. Recently researchers have noted the issue and moved their attention to gaining an understanding of customers‟ usage behavior of m-services following their initial adoption (Stokmans, 1998; Park et al. 2011; San-Martin & López-Catalán 2013; Lu, 2014). Generation is one of the major variables to segment consumer market. Consumer learning abilities change with age. Despite the above developments, no empirical evidence currently exists on whether generations will influence smartphone usage behavior pattern. This paper hypothesizes that whether or not baby boomer and generation X who may be parents of Millennials can use a smartphone as skillfully as the younger generation. This paper aims to examine the different smartphone usage behavior between generations in Taiwan. 2. Literature Review Smartphone usage behavior has been researched extensively in marketing and related fields. Previous studies have found that smartphone users differ by orders of magnitude. Rahmati et al. (2012) explore this variability to understand how users install and use native applications in ecologically valid environments. Osman et al. (2011) present the result of a survey on the attitude and behavior of consumers toward the various types of smartphone usages such as application software, e-mail, Internet browsing, ringtones, and other mobile contents. Their findings indicated that the “smartness” of smartphone has yet to be fully exploited, since most of the usages are limited to core functionalities of mobile phone such as making phone call and Short Message Service (SMS). Researchers in technology acceptance have addressed the moderating role of age (e.g., Hur et al., 2014; Venkatesh and Davis, 2000). Blankenship (1998) and Zakaria (2001) studied the factors that were related to computer use by instructors in teaching, and he found that age was a statistically significant predictor of computer use in classroom instruction. Most of the previous results empirically showed that majority of the smartphone users are teenagers and younger adults (Wilska, 2003; Osman et al., 2012). Steenkamp et al. (1999) and Tellis et al. (2009) found a significant negative effect of age on innovativeness. Approximately 90% of smartphone owners in Malaysia are below 36 years of age, and 61% of the respondents who agreed that hardware is important are male, whereas only 39% of those who agreed on this are female (Osman et al. 2011). Approximately 80% of smartphone owners in China are below 44 years of age (ProsperChina insightcenter, 2012), and in U.S. more than half of smartphone owners are between the age of 12-34 and approximately 90% of smartphone owners are below 36 years of age (Edison Research and Arbitron 2012). Previous studies have also reported the generation gap among different generations (e.g., Edwards, 2012; Gafni and Geri, 2013; Perez, 2010). Falaki et al. (2010) characterized intentional user activities – interactions with the device and the applications used – and the impact of those activities on network and energy usage. The authors concluded that smartphone usage was immensely diverse among users. However, there is a lack of extensive studies exploring generation gaps for smartphone usage behavior. Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 3. The Methodology and Model 3.1 Hypotheses development 3.1.1 Usage behavior Usage behavior starts from the second step of the expectancy confirmation theory that customers accept and use that product or service. Smartphones are being adopted at a phenomenal pace but little is known about how people use these devices until 2010. Nowadays, smartphones can be used in all activities of communication, business, games, news, instant messaging, entertainments, the latest social networking service, applications, etc. Falaki et al. (2010) characterized two types of smartphone usage behavior: intentional user activities – interactions with the device and the applications used – and the impact of those activities on network and energy usage; and they concluded that there are immensely diverse usage behavior among users. Osman et al. (2012) surveyed 1814 smartphone users in Malaysia and reported the following usage patterns of smartphone: make a phone call, check e-mail, business, entertainment, studying, browsing Web page, short message send, instant messaging, GPS, read PDF/Word, others. Statista (2014) displayed activities children carried out on smartphones in Great Britain 2014 on which taking pictures or films, downloading apps, chatting with friends, playing games, social networking (facebook or twitter), browsing online, watching videos, learning things, video chatting (skype or FaceTime) and watching TV and “none of the above” were included (http://www.statista.com/statistics/293492/smartphone-usage-behavior-among-children-greatbritain/). Among these activities, only 2% of respondents selected the item “none of the above”. 3.1.2 Generations Members in the same generation share the same major cultural, political, and economic experiences and have similar outlooks and values (Kotler et al., 2012). Generations have been used as a moderator variable extensively in marketing and related fields. In addition to evidence presented in literature review, it is found that many older persons in Taiwan obtained their smartphone from their children as a gift as well as a second hand good passed down by their children. Some persons, particularly for aged persons, possess their smartphones before they can use smartphones better than cellphones they had before. Consequently, this paper proposes a hypothesis that the smartphone usage is different among generations. 3.2 Questionnaire development On the basis of the items in Falaki et al. (2010), Osman et al. (2012) and in Statista (2014), an initial pretest, nine graduates of a department of Marketing and Logistics Management judged the set of all items. These students commented on unclear and ambiguous items and came up with suggestions on how existing items might be improved. They also provided a number of new items. Particularly, for the items included in the measure of usage behavior, the initial list of 15 items, 12 items were edited, and 9 new items were added. Overall, this resulted in a revised 24 items for the measure of usage behavior. Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 In the second stage, we refined the questionnaire by running two pretests with respondents from a convenience sample of 43 undergraduates who were born after 1994, and another convenience sample of 31 faculties of a University of Taiwan. The standard deviation over these two different respondents is an indicator of how consistent different respondents rate this item for the smartphones. The standard deviations of all items in the measures of usage behavior are between 0.12 and 0.73. The values of F-test indicate that equality of two standard deviations of each item was not rejected at a level of 0.05, for all items. All items consisted of five choices by the following five-point scale: 1 = “never used,” 2 = “(averagely) less than one time usage per day,” 3 =“(averagely) among one to five times usage per day,” 4 = “(averagely) among six to ten times usage per day,” and 5=” (averagely) over ten times usage per day”. For classifying respondents‟ age, a question consisted of four generation choices is included, in accordance with the general definition of generation (Rosenburg, 2009), by the following scale: 1 = “born before 1964 (baby boomers whose age older than 50),” 2 = “born between 1965 to 1981 (Gen. X whose age between 33 to 49)” 3 = “born between 1982 to 1993 (Gen. Y whose age between 21 to 32),” and 4 = “born after 1994 age below 21.” 3.3 Data collection Data collection took place from May to August, 2014. 625 undergraduates of Department of Marketing and Logistics Management and 236 faculties at Yu Da University were invited to participate in this study. Each of seven graduates was dispatched to survey students of the Department at the University, and the authors mailed the questionnaire to each faculty. Each respondent received an email containing an internet address at http://www.mysurvey.tw/edit/questionnaire!list.htm and was asked to fill an online selfreported questionnaire located at the address. Among the total of 200 questionnaires, 17 of which were returned incomplete, and only 5 copies out of the 183 completed questionnaires answered that they had not possessed a smartphone. The profile of generation and gender of completed copies are listed in Table 1. The percentage of generations fit well the profile of surveyed respondents in the University. A total of 53.4% of the respondents were female (see Table 1). The percentage of the gender is small but not significant unfit for the demographics of the population we surveyed. We believe these issues are only minor limitations to our study. Table 1 Sample demographic characteristics (N=178) Gender n (%) Generation Male 83 46.6 Baby Boomers Female 95 53.4 Gen. X Gen. Y Gen. Z Age above 50 33 to 49 21 to 32 below 21 n 32 57 53 36 (%) 18.0 32.0 29.8 20.2 4. The Findings 4.1 Measure validation An exploratory factor analysis was used to identify and purify the reliability of innovation attributes and customer perceived risk scale. First, items with factor loading below .4 and Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 items strongly loading on more than one factor were excluded (Hair et al., 2006). Second, Cronbach Alpha (α) and item-to-item correlations were calculated for each factor. Items that increased Cronbach Alpha when deleted, were excluded. After deleting a few items according to the criterion mentioned previously, Cronbach Alphas (α) of all constructs are greater than 0.7, indicating an acceptable level of internal consistency (Bagozzi and Yi, 1988). The significant factor loadings demonstrate convergent validity, while the Cronbach alphas and construct reliabilities indicate satisfactory internal consistency (Churchill 1979; Fornell and Larcker 1981). Convergent Validity of the measures was tested by calculating the composite reliability (CR) of the constructs and the average variance extracted (AVE) (Fornell and Larcker, 1981). The criteria of reliability and validity are satisfying, as AVE is above .50 and CR is above .70. Table 2 reports the psychometric properties of each measure. In summary, smartphone usage behavior (UB) has been factored into three patterns including entertainment factor (EN), in which seven items were involved, life and work factor (LW), in which twelve items were involved, and communication factor (CM), in which four items were involved. Attribute innovation has been factored into two determinants including advantage and compatibility (AC), in which five items were involved, and complexity (CX), in which four items were involved. Consumer innovativeness (CI) has been factored into three determinants including novelty seeking (NS), in which six items were involved, independent decision (ID), in which five items were involved, and reluctance to adopt new products (RA), in which three items were involved. Finally, customer satisfaction has three items remaining. Table 2 The measures of smartphone usage behavior patterns and their psychometric properties Behavior pattern Items Standardized Factor Loading 1 Entertainment (EN) α =0.804, CR =0.923, AVE=0.751, 2. Life and work (LW) α =0.711, CR = 0.85986 a EN1 download games from App EN2 roam in Facebook or Twitter EN3 check into places EN4 use Youtube to watch movies EN5 watch TV program EN6 online information search EN7 listen music. 0.69094 b 0.68766 0.70766 0.68166 0.54576 0.50688 0.56237 0.89261 LW1 use learning software. LW2 use exercise 0.55945 0.59430 Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 0.849 , AVE= 0.684 3. Communication (CM) α =0.747, CR =0.929, AVE= 0.815 a construct loading, b item loading recording software LW3 use secretary function to booking or registering a seat LW4 use GPS or Google Map. LW5 read pdf 、Excel or word files. LW6 use cloud monitoring system. LW7 send or receive email LW8 use calendar. LW9 use Dropbox or other cloud hardware system LW10 online purchasing LW11 read electronic book LW12 look up weather 0.59138 0.50319 0.48371 0.42351 0.61071 0.52049 0.53943 0.55781 0.61587 0.46065 0.73330 CM1 dial and answer calls CM2 use Line or Wechat CM3 make photograph. CM4 record voice or video 0.52396 0.50789 0.63405 0.48731 4.2 Generation gaps analysis After purification of measurements, we then performed a multivariate analysis of variance to test the equalities of three smartphone usage behavior patterns among generations. This analysis was conducted using SAS (9.3) PROC GLM model with the average score of items within three usage behavior patterns as response score, respectively. The results are presented in Table 2. Our hypothesis indicated that the equality of smartphone usage behavior pattern of entertainment among generations was significantly disproven. Table 3 shows the differences of individual items among generations. It is found that the generation gap of entertainment usage behavior resulted from a fact that p-values of all items are less than 0.02. Scheffé‟s multiple-comparison procedures give more detailed information about the differences among the means of these items across generations (Hair et al., 2006). The profile of seven means is displayed in Figure 1 where the numbers of horizontal axis indicate the items in the entertainment pattern. It is clear that the means of entertainment items of baby boomers and Gen. X are totally less than those of Gen. Y and Gen. Z. This result Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 indicates that the means of entertainment items can be separated into two groups: group 1 which consists of baby boomers and Gen. X and group 2 which consists of Gen. Y and Gen. Z. The findings also clearly show that item 2 (roam in Facebook or Twitter) has the highest score while item 5 (watch TV program) has the lowest score among the seven entertainment behavior items, and these same phenomena appeared in all generations. The generation gap of life and work usage pattern was not accepted because only three out of twelve items had a significant difference at a level of 0.05. The Gen. Z‟s scores in two cloud related items ,Item 6 (use cloud monitoring system).and item 9 (use Dropbox or other cloud hardware systems), are lower than those of Gen. X‟s and Gen. Y‟s scores, indicating that the ages of Gen. Z are too young to care the usage of cloud function in their smartphone. Another interesting fact is that the highest score amongst all items for baby boomers is the item COM1 (dial and answer calls) indicating that “dial and answer calls” is the main function of smartphone for this generation. Table 2 Statistics for MANOVA Pattern\Gen. Baby Boomers Entertainment 2.598 Live and work 2.440 Communication 3.703 Gen. X 3.012 2.614 3.954 Table 3 Statistics for MANOVA Variable\Gen. Baby Boomers Entertainment pattern items EN1 download games from App 2.225 EN2 roam in Facebook or Twitter 3.156 EN3 check into places 2.156 EN4 use secretary func3.000 tion to booking or registering a seat EN5 watch TV program 2.093 EN6 online information 2.968 search EN7 listen music 2.562 Live and work pattern items LW1 use learning software. LW2 use exercise recording software LW3 use secretary function to booking or registering a seat LW4 use GPS or Google Map LW5 read pdf、Excel or word files. LW6 use cloud monitoring system. LW7 send or receive e-mail LW8 use calendar LW9 use Dropbox or other cloud Gen.Y Gen.Z F-value p-value 3.584 3.571 12.05 <0.0001 2.805 2.526 1.69 0.170 4.000 4.109 2.11 0.101 Gen. X Gen.Y Gen.Z F-value p-value 2.883 3.623 2.857 3.142 3.622 4.169 3.396 3.622 3.397 3.812 3.187 3.562 12.39 <0.001* 5.58 0.001* 7.15 0.001* 3.52 0.016* 2.064 3.454 2.792 2.875 6.65 3.716 3.625 4.27 3.064 3.773 4.000 10.68 <0.001* 2.406 1.812 2.428 1.870 2.981 2.500 3.46 2.207 2.000 1.22 2.281 2.480 2.566 2.250 0.52 0.667 2.968 2.531 3.051 2.974 3.471 3.437 3.339 3.062 2.41 0.068 3.98 0.008* 1.781 1.454 1.452 1.250 1.92 0.127 3.062 3.093 2.343 3.454 3.142 2.688 3.188 3.062 1.13 0.337 3.094 3.000 0.06 0.980 2.849 2.375 1.19 0.414 <0.001* 0.006* 0.017* 0.302 Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 hardware system LW10 online purchasing LW11 read electronic book LW12 look up weather Communication pattern items CM1 dial and answer calls CM2 use Line or Wechat CM3 make photograph CM4 record voice or video *p-value < 0.05 1.687 2.125 3.187 2.168 2.428 3.233 2.603 2.187 2.679 2.186 3.226 3.000 4.406 4.093 3.687 2.625 4.337 4.259 4.090 3.129 4.113 4.509 4.169 3.207 4.375 4.750 4.187 3.125 4.94 0.002* 1.78 0.152 0.22 0.880 1.41 3.06 2.72 3.07 0.242 0.029* 0.046* 0.029* Figure 1 Profiles of generation smartphone usage behavior patterns 5.Summary and Conclusions To investigate generation gaps of smartphone usage behaviour in Taiwan, a questionnaire including 24 items has been designed. A percentage of 2.7% of total 183 complete returned respondents answered that they had not possessed a smartphone. This figure is larger than those appeared in the literature indicating a high market penetration of smartphones in Proceedings of 29th International Business Research Conference 24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1 Taiwan. After the validity of this scale being examined, usage behaviour is classified into three patterns: entertainment, live and work, and communication. Multivariate analysis of variance shows that only entertainment behaviour pattern has a significant difference among generations. Furthermore, the result of Scheffé‟s multiple-comparison procedures indicates that the means of entertainment patterns can be separated into two groups: group 1 which consists of baby boomers and Gen. X and group 2 which consists of Gen. Y and Gen. Z. The finding also shows that item 2 (roam in Facebook or Twitter) has the highest score while item 5 (watch TV program) has the lowest score among the seven entertainment behaviour items, and these same phenomena appeared in all generations. And “dial and answer calls” is the main function of smartphone for this generation. Our results imply the fact that older customers including baby boomers and Gen. X are hardly the benefiting from the entertainment pattern of possessing a smartphone. Another interesting fact is that the ages of Gen. Z seems to be too young to care the usage of cloud function in their smartphone. Our study confirms the results conducted by the previous researches (Edwards, 2012; Gafni and Geri, 2013; Perez, 2010) that smartphone usage was immensely diverse among users. The contribution of this paper is to identify that the three usage behaviour patterns (entertainment, life and work, and communication) and discovered that the difference of usage patterns is in the entertainment usage behaviour. However, the percentages of smartphone usage behaviours among various generations reported by this paper seem somewhat inconsistent with the results of the previous studies (e.g., Wilska, 2003; Osman et al., 2012; ProsperChina insightcenter, 2012). The inconsistency may result from the fact that our respondents focus only on the college students and faculties of a university in Taiwan. Despite the above limitation, our results may provide important insights to smartphone marketing strategist in the industry to improve the usage method of their smartphone for their older customers. References Bagozzi, R. P. and Yi, Y. 1988, „On the evaluation of structural equation models‟, Journal of the Academy of Marketing Science 16, 74–97. 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