Erasmus University Rotterdam Erasmus School of Economics Supervisor: Prof. B.G.C. Dellaert Master Thesis Marketing “The drivers for consumers to participate in the online mass customization of cars” Student: M.J. Overbeek Student number: 402629 E-mail: 402629mo@student.eur.nl Date of delivery: 21-05-2015 Online Mass Customization of Cars M.J. Overbeek - 402629 Executive Summary This master thesis studies the incentives for consumers to participate in the online mass customization of cars. Recent research proves that 94% of the car buyers start their shopping experiences online. Online mass customization of cars implies that people are able to customize their preferred car in an online setting with a clear visualization of the modifications they have implemented. Theory shows that drivers to participate in online mass customization could be ‘system characteristics feature-related’ of or could the relate to consumer personal involved. The conceptual framework that has been applied was partly inspired by the study from Dellaert & Dabholkar (2009). The specific system feature we research is the range of customization choices. We apply the method of a survey in order to collect data for this research. In the questionnaire, two different scenarios will be applied. Respondents are sent to an online car customization system with a relatively small range of customization choices. After that, respondents are sent to a second scenario with a wider range of customization choices. After working on both external online mass customization systems, respondents have to answer the same set of questions related to the just performed customization assignment. In total 103 respondents completed the online questionnaire. Results show that more customization choices increase the intention to use an online mass customization system of cars in a direct way. The indirect effect of this system feature is even larger while more choices increase the perceived enjoyment of the consumer involved. This variable is in fact the only personal characteristic from our study with a positive, significant effect on the intention to use such a system. That is the main outcome of this research , perceived enjoyment positively effects the intention to use an online mass customization system of cars. This result supports the so-called ‘I designed It myself’ effect where enjoyment during engage 2 the customization in process is online the main motivation mass in order to customization. Online Mass Customization of Cars M.J. Overbeek - 402629 Table of content 1.Introduction ............................................................................................................................ 5 2. Theoretical Background......................................................................................................... 7 2.1. What are online mass customization programs? ............................................................ 7 2.2. Creative consumer behaviour ......................................................................................... 9 3. Conceptual framework ....................................................................................................... 11 3.1 The impact of consumers’ perceptions of creativity, enjoyment and control on the intention to use an OMCS ..................................................................................................... 11 3.1.1. Creativity............................................................................................................. 11 3.1.2. Enjoyment........................................................................................................... 12 3.1.3. Control ................................................................................................................ 13 3.2.The impact of range of mass customization choices on consumer perceptions of creativity, enjoyment and control ........................................................................................ 14 3.2.1. Creativity............................................................................................................. 15 3.2.2. Enjoyment........................................................................................................... 16 3.2.3. Control ................................................................................................................ 16 3.3. Moderating variable ‘product expertise’....................................................................... 17 3.4. Overview of the hypotheses ......................................................................................... 20 4. Methodology ....................................................................................................................... 21 4.1 Data collection ................................................................................................................ 21 4.2. The Questionnaire ........................................................................................................ 21 4.3. Measurements of the questionnaire ........................................................................... 22 4.3.1. Range of mass customization choices ............................................................... 22 4.3.2. Intention to use an OMCS ................................................................................. 22 4.3.3. Consumer Perceptions of creativity .................................................................. 23 4.3.4. Consumer Perceptions of enjoyment ................................................................ 23 4.3.5. Consumer Perceptions of control ...................................................................... 23 4.3.6. Product expertise .............................................................................................. 24 4.4. Control variables ........................................................................................................... 26 3 Online Mass Customization of Cars M.J. Overbeek - 402629 5. Analysis and Results ........................................................................................................... 27 5.1 Factor analysis............................................................................................................. 28 5.1.1. Scenario ‘0’ with the small range of choices ..................................................... 28 5.1.2. Scenario ‘1’ with the wide range of choices ...................................................... 29 5.2. Reliability test ............................................................................................................ 29 5.3. Hypotheses testing ................................................................................................... 30 5.3.1. Regression analysis for intention to use an OMCS ............................................ 31 5.3.2. Regression analysis for perceived creativity ..................................................... 31 5.3.3. Regression analysis for perceived enjoyment ................................................... 32 5.3.4. Regression analysis for perceived control ......................................................... 33 5.3.5. Regression analysis for moderating effect of product expertise on perceived creativity ...................................................................................................................... 33 5.3.6. Regression analysis for moderating effect of product expertise on perceived enjoyment .................................................................................................................... 34 5.3.7. Regression analysis for moderating effect of product expertise on perceived control .......................................................................................................................... 35 5.3.8. Overview results of hypotheses testing ............................................................ 37 5.4. Mediation analysis .................................................................................................... 38 5.5. Regression analysis with control variables ............................................................... 41 6. Conclusion ........................................................................................................................... 44 6.1. Theoretical implications ............................................................................................ 44 6.2. Managerial implications ............................................................................................ 45 6.3. Limitations and further research ............................................................................ 46 References ............................................................................................................................... 49 Appendix ................................................................................................................................. 55 4 Online Mass Customization of Cars M.J. Overbeek - 402629 1. Introduction The online sales of cars are increasing and the future looks even better according to Foy (2013) in the Financial Times. Online showrooms and digital dealerships will totally revolutionise car buying. Car buying is going to change with this upcoming movement. Online car sales are increasing, but consumers can also just use the internet to orient towards looking for a new car. This has been proven by a research from Capgemini (2013) which states that 94% of the car buyers start their shopping experience online. This trend is strengthened by the recent news that half of the Dutch car showrooms will disappear in the upcoming years (De Volkskrant, 2015). A possible reason for this movement might be the consumer’s ability to configure a phenomenon car to is their own called preferences online in an online mass setting. This customization. The automobile industry is a very innovative industry which is mainly caused by the high level of competition (Hashmi & Van Biesebroeck, 2010). There are many carmakers which target markets all over the world so that it is crucial for them to stay innovative. These firms need to outperform their competitors on a particular field. Whereas a firm such as Tata tries to focus on price, Tesla anticipates on the green movement and was one of the first companies that introduced a full electric vehicle (Vance, 2013). What all these firms do have in common is that they offer possibilities to customize their cars online. Customization of cars was for a long time only possible at your local car dealer without a precise visualization. Nowadays, consumers interested in a model can customize their preferred car in a online setting with a clear visualization of the modifications they have implemented (Herrmann et al., 2011). But what drives people to use these kinds of modern techniques instead of browsing through car models in traditional showrooms? Car manufacturers already offer the possibility for online mass customization of their cars so their should be a certain interest. Our problem statement is as follows: what are the main drivers for consumers to participate in the online mass customization systems of cars? These drivers could be related to the features of the online mass customization system or could relate to personal characteristics of the consumer involved. Both sides will be highlighted by using research questions, such as: how could system-related features increase the consumer’s intention to use online mass customization 5 Online Mass Customization of Cars M.J. Overbeek - 402629 systems? Does existing knowledge about cars influence the intention to use these customization systems? What effect do consumer perceptions of the customization process have on the intention to use such a customization system? Do more customization choices also increase the enjoyment of the consumers involved? The relevance of this research is demonstrated in the overall upcoming movement of online mass customization, a phenomenon earlier researched by Franke & Piller (2004) and Dellaert & Dabholkar (2009). More and more firms offer their consumers these kinds of systems in order to generate sales. Our research has an addition compared with the research from Dellaert & Dabholkar (2009) by studying the perceived creativity of consumers. There exists evidence from Costello & Keane (2000) and Moreau and Dahl (2005) which reveals that more choices could inhibit consumer’s creativity. A finding that up tot now has not been studied in an online environment. Moreover there has never been an extensive research about online mass customization in the car industry. Knowing that online mass customization is an overall upcoming movement, it is interesting to study this phenomenon in this specific product group. 2. 2.1. 6 Theoretical What are online mass background customization programs? Online Mass Customization of Cars M.J. Overbeek - 402629 The product offering of traditional retailers is mainly focused on offering a broad assortment of a product group. In a perfect situation, this wide variety of items has an attraction to every consumer searching in that product group (Huffman & Kahn, 1998). According to Berger et al. (2005) the retailer’s function is being a buffer or intermediate between manufacturers and consumers. Retailers sell the standardized products which are produced in cost-efficient mass production. seen In as this product the centric situation buying the side of consumers the were only market. Besides this product centric approach there exists an upcoming movement of a consumeroriented approach, known as mass customization. Aichner and Coletti (2013) state that mass customization is the tool in order to offer affordable services and goods combined with a wide range of personalisation options. To be precise, mass customization tries to combine two business practices: craft and mass production (Pine, 1993). With this consumers are actively involved in the design-stage of the product. Mass customization is therefore often defined as the process of co-design, emphasizing the interaction between consumers and companies involved in mass customization (Piller et al., 2005). The strength of mass customization seems to be personalization for an affordable price while ‘pure customization’ is much more expensive. Therefore, mass customization is used in more and more different product groups (Bernhardt et al., 2007). When looking at the history, cars seem to be a typical example of a product customization according to Aichner and Coletti (2013). At the start of car production in the nineteenth century, cars were almost completely hand-built. By this human touch consumers were able to indicate what kind of personalisation they preferred. However, costs were high because of the small volumes and the amount of labour involved. Mass production of cars came at the end of this century together with the introduction of the Ford Model T. This first relatively affordable car resulted in a cost line going down and an increasing market demand. Together with this movement, the product customization faded away while black was the only colour possible. The consumer choice disappeared and this lasted until around 1960 with the returning choice of car colour. After this evolution there came choice of engines and in the 1980s way more customization options were available for car buyers. Later on, car buyers could even choose a contrasting colour of their roofs or mirrors (Aichner & Coletti, 2013). 7 Online Mass Customization of Cars M.J. Overbeek - 402629 What is discussed previously all took place in a traditional, offline setting. Together with the overall internet movement car customization also moved towards an online setting. While customization in the car industry has known many phases it is interesting to study its newest phase, the one of online mass customization. The relevance of studying online car customization is emphasized by Hermann et al. (2011) who mention that in the German car industry, more than 70% of the car buyers configured an automobile on the internet in the year 2011. This finding is being supported by the statement from Capgemini (2013) which shows that 94% of the car buyers start their shopping experience online. This last statement does not necessarily stress online car configuration but it does highlight that the internet is a very important medium for consumers interested in cars. Online configurators require particular software in order to be operational on the internet. Therefore, experts often talk about online mass customization systems (OMCS). This term is being used while an online system now facilitates the interaction between consumer and firm instead of a salesperson or catalogue (Franke & Piller, 2004). Consumers involved in online mass customization are able to design a product in an online environment according to preset options. For instance, a consumer can choose out of given set of colour options with regard to the product feature ‘car colour’ (Park et al., 2000). One of the main features of OMCS that car manufacturers apply is visualization. This feature matches the main benefit of physical stores where people can see the product before they buy it (Dellaert & Dabholkar, 2009). By changing immediately particular see features the of the changes product, they have consumers can implemented. An OMCS can be quite basic but also very elaborative. An online car configurator could be more extensive than the other with regard to the range of consumer choices. This will be a key area of research, which aims at whether the range of mass customization choices influences consumer perceptions of OMCS and thereby the intention to use these kinds of systems. The consumer perception which has our main focus will be a relatively new consumer perception in this research field of mass customization: consumer’s perceived creativity, 8 which will be discussed in the next section. Online Mass Customization of Cars M.J. Overbeek - 402629 Earlier research from Dellaert & Dabholkar (2009) studied the intention to use an OMCS with usage of the consumer perceptions: enjoyment, control, complexity and product outcome. Only their first two perceptions will be used in this new research while these perceptions are relatively new in researching online mass customization systems. The influence of the last two perceptions, complexity and product outcome, has already been proven in several studies. According to the research from Dellaert & Dabholkar (2009), their two added consumer perceptions turned out to have a strong impact on the intention to use an OMCS. Although another product setting (car customization) will be applied compared to their research about jeans, it is interesting to test whether their statements also prove valuable in the online 2.2. configuration Creative of cars. consumer behaviour There are hundreds of different meanings of creativity in existing literature. However when it comes to consumer’s creativity, experts often talk about problem-solving creativity. Creativity is part of the daily survival of consumers and emphasizes the usefulness of creative thinking when people face issues. Issues can be solved in a familiar way, but when people face new problems, a greater need arises for new ways of doing things and therefore, the need for creativity arises (Ackoff & Vergara, 1981). A clear definition of creativity is the one of Lubart & Sternberg (1995) which states that creativity means the person’s capacity to produce work that is original in the first place and in the second place is adapted to the constraints faced in that situation. When discussing creative consumers they will be defined as individuals or a group of individuals which adapts, modifies or transforms a proprietary offering. When the earlier discussed Ford Model T came out, farmers did not only use them as a means of transportation. In fact, they modified this automobile in order to use it as a power source for driving generators, mills, and lathes (Berthon et al., 2007). These famers apparently had a problem with the propulsion of these tools and through creative thinking they tackled this problem. So it is not only possible to modify the look of your car in a creative way, there are also creative methods of using these cars. Many acts of creative consumer behavior have, however, little to do with problem solving per 9 Online Mass Customization of Cars M.J. Overbeek - 402629 se. Holt (1997) states that people modify or compose their clothes, houses or cars in their own specific ways depending on their personal tastes. When this is the case, creativity can be perceived as self-expression with social communication towards others. The utilitarian function of creativity is then not crucial; it is about aesthetics. An expression that refers to refinement or beauty of a product or any other outcome of a creative process, while not keeping the utilitarian function in mind (Holt, 1997). One of the difficulties when dealing with creativity is how to evaluate it. In a professional context, creativity could be evaluated by socalled design experts. These experts evaluate student’s projects made in a design studio. These design experts are expected to share similar opinions about creativity levels applied in a certain design project (Casakin & Kreitler, 2006). Even so how precise are these shared opinions and are they shared in the first place? Instead of evaluating creativity by outsiders or ‘design-experts’, there is also evidence emphasizing the self-assessment of creativity. This could be considered as a self-judgement of one’s perceived skills and imaginative abilities to generate bright solutions, behaviours and ideas (Kaufman & Sternberg, 2010). Casakin and Kreitler (2006) show in their research evidence that individuals’ self-assessed creativity turns out to be a legitimate and valid tool for evaluating their own designs. Although other researchers such as Paulhus and John (1998) doubt the validity of self-assessed creativity because of the assumed biases, the self-assessed creativity will be applied in this research. Nevertheless this will be done while mentioning that perceived creativity is not a fixed aspect. This view has been popularized while the creative customer is demanding a more prominent role in product development and innovation (The Economist, 2005). 3. Figure 10 Conceptual 1: The framework conceptual framework Online Mass Customization of Cars M.J. Overbeek - 402629 Product expertise System feature Consumer perceptions Range of mass Creativity customization choices Enjoyment Intention to use OMCS Control 3.1 The impact of consumer perceptions of creativity, enjoyment and control on the intention to use an OMCS This conceptual framework is partly inspired by the research from Dellaert & Dabholkar (2009) who studied the drivers for consumer’s intention to use an OMCS. In their conceptual framework they implemented a separation between system features, consumer perceptions of cost-benefits and the intention to use an OMCS. Their manner of classification is used but by implementing composed variables which will be further discussed in this chapter. 3.1.1. Creativity Whereas the concept of creativity was discussed earlier, its influence on the intention to use mass customization programs will now be discussed. A phenomenon which often goes along with creativity is daring to take risks. In order to be creative, individuals have to be willing to take the risk with a possibility of failure (Tesluk et al., 1997). Hirschman (1980) found out that consumers’ creativity is positively correlated with inter alia, looking for new experiences and “modernity’ which implies the openness towards new ideas. Both correlations indicate that creative consumers are open to new ideas and are often looking for them. An OMCS could therefore be an attractive option for them while this target group do not just go along with 11 the crowd. Online Mass Customization of Cars M.J. Overbeek - 402629 Another interesting finding is the 'I designed it myself' effect in mass customization (Franke et. al, 2010). When people really believe that they are the creator of a product, their utility increases significantly and so does their willingness to pay for the product. Füller et. al. (2009) state that an individual’s differences with regard to their creativity level will cause differences in behaviour within an OMCS. A further study proved that creative consumers are more open to co-creation of product and therefore more likely to participate in an OMCS compared to their so called “less-creative counterparts” (Füller et al., 2011, p. 269). When consumers perceive that they became more creative, it will be more likely that they will participate again in an OMCS. H1a: Greater perceived creativity in online mass customization increases intention to use. 3.1.2. Enjoyment According to Dellaert & Dabholkar (2009), perceived enjoyment is defined as “the consumer’s perception of the pleasure associated with the experience of using online MC” (p. 46). At the time when only traditional retail stores existed, there was evidence that enjoyment during the shopping experience provided value for the consumer involved (Hirschman, 1983). This hedonic shopping value could, according to Maclnnis & Price (1987), even increase without actually buying the product you are looking for. It is about the enjoyment during the shopping activity. Knowing the high prices cars usually have, consumers involved in the mass customization of cars should definitely not also have to buy that car. An average citizen could for instance not afford a Ferrari, but someone could just enjoy the customization process of that car (Holbrook & Hirschman, 1982). Nowadays, the use of internet has emerged and so do the online shopping numbers. Researchers such as Babin et al. (1994) have demonstrated the existence of hedonic and utilitarian shopping value. These two values also seem to exist in the online environment. According to Wolfinbarger and Gilly (2001) a separation exists between experiential, for enjoyment, and the known utilitarian, with a goal, function of shopping. Although their research proves that online consumers are mainly goal-oriented, it is interesting to test whether enjoyment is a prominent consumer value. Their research is thirteen years old and in 12 that period of time the usage of internet increased enormously. Online Mass Customization of Cars M.J. Overbeek - 402629 With regard to technology-based services there is no clear evidence that perceived enjoyment could increase the intention to use these technologies (Dabholkar & Bagozzi, 2002). Franke et al. (2010) emphasize the mentioned the "I designed It myself" effect where fun during the process of customization plays an important motivation to engage in an OMCS. In concrete terms the research from Dellaert & Dabholkar (2009) proved that there is a positive effect of enjoyment on the intention to use an OMCS in the setting of online jeans customization. H1b: Greater perceived enjoyment in online mass customization increases intention to use. 3.1.3. Control Besides adding enjoyment as relatively new consumer perception, Dellaert & Dabholkar (2009) also added ´control´ in their conceptual model as main consumer perceptions. Perceived control is by them defined as “the extent to which consumers believe they are able to determine the outcome of the MC process” (p. 45-46). With regard to personal interaction, it is proven that a sense of control is desired by individuals. Schutz (1966) states that a feeling of control is even necessary in order to interact in a satisfying manner with other individuals. An example from Gilmore and Pine (1996) shows that Levi Straus adapted mass customization in an early stage but with one main shortcoming. Although Levi Straus offered consumers jeans which where based on consumers’ preferred sizes and styles, consumers were not that satisfied. They only became satisfied if they were able to try the jeans in one of the design stages. After providing feedback they got a feeling of control over the final product and their satisfaction with the customization process increased as well. The earlier discussed research from Wolfinbarger and Gilly (2001) discovered that goalseeking consumer are predominantly active on the internet. It was noted that these consumers prefer a feeling of freedom and/or control. The desire for this notion of control could increase the incentive to involve in an OMCS where the consumer is in control when making all kinds of product-specific decisions. The research from Pavlou & Fygenson (2006) provides findings that consumers with a sense of control also have more intention to adopt ecommerce activities. An OMCS could be such an activity and Dellaert & Dabholkar (2009) therefore implemented the consumer perceptions of control in their conceptual model. Their 13 Online Mass Customization of Cars M.J. Overbeek - 402629 outcome was that consumers’ perceived control has a significant, positive effect on the intention to use an OMCS. H1c: Greater perceived control in online mass customization increases intention to use. 3.2. The impact of the range of mass customization choices on consumer perceptions of creativity, enjoyment and control The OMCS feature which will be highlighted in this study is the range of customization choices available for the user. Online customization is in fact an interaction between the company and the user. Whereas the company makes decisions about what kind of options are available to the consumers, they also have to decide whether the range of customization choices is extensive or relatively restricted (Piller et al., 2005). Different theories are available which state whether consumers appreciate an extensive range of choices or not. According to this literature there seems to exist a gap between the earlier mentioned 'I designed it myself' effect (Franke et. al., 2010) and the ‘overchoice’ effect from Gourville & Soman (2005). The 'I designed it myself' effect (Franke et. al., 2010) states that consumers appreciate a high level of control over the customization process. By providing a high amount of choices, an OMCS could satisfy these consumers, while more choices mean more control instruments for these individuals (Aichner & Coletti, 2013). It is interesting to test this finding with regard to the three consumer perceptions. The other way of thinking emphazises the ‘overchoice’ effect, also known as the burden of choice (Gourville & Soman, 2005; Huffman & Kahn, 1998; Piller et al., 2005). This view states that consumer could become overwhelmed when they are faced with too many options. A clear example from Piller et al. (2005) is the situation when you are in a restaurant with too many choices on the menu card. Consumers could become uncomfortable with an extreme number of choices. Therefore it seems to be interesting to investigate whether and how the range of choices in an OMCS affects the consumer perceptions. 3.2.1. Creativity Literature that actually describes the influence of the range of online customization choices 14 Online Mass Customization of Cars M.J. Overbeek - 402629 on the consumers’ creativity does not exist but there is evidence available from a traditional, offline environment. These researches used the concept of constraints with regard to the influence on someone’s creativity. A type of constraint which has often been used in that context are time constraints. When individuals are involved in an creative activity Stokes (2001) found out that individuals become more creative when facing time constraints. This finding has a side note that these constraints should be not too extreme, a statement Kelly & Karau (1993) indicate as well. Ridgeway and Price (1994) composed a concept that moved from time constraints towards input constraints. A person who wants to prepare a meal but is facing input constraints such as restricted access to markets and products, actually becomes more creative in his cooking activity. A rigid definition of constraints is that they are “limitations or barriers imposed on the individual that may lead to decreased or non-participation in an activity” (Patterson, 2001, p. 1). The research from Moreau and Dahl (2005) consists of both types of constraints, time and input constraints. Their findings suggest that consumers turn out to become more creative when they face a more constraint environment with regard to input constrains and when time constraints are lacking. These input constraints reduce their customization options and therefore the consumers’ level of creative processes increases. This is in line with earlier cognitive psychology research from Stokes (2001) and Costello & Keane (2000). By restricting the consumers’ options they are prevented of following their path-of-least-resistance (Ward, 1994). The input constraints could in this research be considered as the range of customization choices of in an customization OMCS available choices means for a consumers, relatively low whereas level of a input wide range constraints. H2a: When the range of online mass customization choices decreases, perceived creativity increases. 3.2.2. Enjoyment Section 3.1.2. showed that enjoyment is a prominent consumer value in shopping experiences. During a shopping experience, consumers prefer to be in charge while they decide what to purchase. With regard to customization, the ‘I designed It myself’ effect (Franke et al., 2010) could indicate that consumers prefer many customization choices in order to like the customization process. These persons want to get involved with the customization process 15 Online Mass Customization of Cars M.J. Overbeek - 402629 and with a small number of customization choices, the probability of having fun during the task will decrease. When facing constraints, individuals could according to Jackson (2000), limit the enjoyment and participation in a leisure-related activity. Findings from motivational researchers Ryan & Deci (2000) suggest that constraints, such as a particular set of instructions, will decrease a individual’s perception of autonomy during a task. The feeling of having freedom during a task could probably increase the enjoyment perceived. Dellaert & Dabholkar (2009) actually investigated the influence from range of customization choices on consumer perceptions of enjoyment in the process of an OMCS. Their outcomes show that there exists a significant, positive relationship between both concepts. The system feature ‘choices’ is able to influence the consumer side of perceived enjoyment. The more customization choices available, so less perceived constraints, the more enjoyment a consumer will perceive. H2b: When the range of online mass customization choices increases, perceived enjoyment increases. 3.2.3. Control Research from Veitch & Gifford (1996) provides evidence that individuals prefer to have choices in order to have a sense of personal control. Personal control means, according to Ward and Barnes (2001), that a person has the perception that the choices he or she makes actually matter and thus determine an outcome. Providing a wide range of choices could increase the level of perceived control. These findings all come from a phychological point of view. In the field of consumer research Hui & Bateson (1991) provide evidence that perceivedcontrol exists, which means that providing more choice to consumers will create a more pleasant service experience for them. According to these findings it is plausible that a larger range of OMCS choices will also cause a higher level of perceived control. H2c: When the range of online mass customization choices increases, perceived control increases. 16 Online Mass Customization of Cars 3.3. Moderating M.J. Overbeek - 402629 variable ‘product expertise’ According to several researches, consumers involved in mass customization could face an ‘overchoice’ effect (Gourville & Soman, 2005; Huffman & Kahn, 1998; Piller et al., 2005). This means that consumers could become confused by a wide range of choices. Other researches emphasize this phenomenom as well, but they make a distinction between consumers with and consumers without product expertise. According to Chase and Simon (1973) experts are better able to process a high number of options. Furthermore, they are less subject to the ‘overchoice’ effect or the information overload like the researchers refer to this. Consumers with product expertise know what their preferences are with regard to the product attributes they have to make decisions about. Dellaert and Stremersch (2005) found out that consumers with product expertise considered mass customization systems less complex than consumers with low levels of product expertise. Consumers that lack product expertise could have problems with figuring out what they prefer. A huge range of options could, especially for them, be overwhelming instead of enriching (Huffman & Kahn, 1998). This problem could frustrate consumers and decrease sales of the firms which offer the wide range of choices. In order to overcome the problem of consumers lacking product expertise, some retailers actively guide these consumers through the shopping experience. They do this by explicitly asking these consumers for their withinattribute preferences. When retailers know this, they are better able to offer options that best match the needs of these specific consumers (Huffman & Kahn, 1998). According to this evidence, it is plausible that product expertise effects the influence of range of mass customization options. The moderating role of ‘product expertise’ will therefore be placed in the relationship between range of customization choices and the three consumer perceptions, see figure 1. The presence of this moderator will influence the effects of consumers with product expertise (Chase & Simon, 1973; Huffmann & Kahn, 1998). These consumers are better able to process a wide range of choices compared to consumers with less product expertise. With this knowledge it is plausible that product expertise will decrease the negative effect of range of choices on perceived creativity, hypothesis H2a. Product expertise makes consumer more capable in the customization assignment. With regard to hypotheses H2b and H2c, the influence of product expertise will probably be positive of 17 Online Mass Customization of Cars M.J. Overbeek - 402629 nature. If consumers prove to be more capable, they will better enjoy the assignment because of the familiarity. The same will probably hold for the perceived control which will increase more for consumers with product expertise. The hypotheses related to the moderating variable ‘product expertise’ are therefore as follows: H3a: Product expertise decreases the effect of range of online mass customization choices on perceived creativity H3b: Product expertise increases the effect of range of online mass customization choices on perceived enjoyment H3c: Product expertise increases the effect of range of mass customization choices on perceived Figure control 2: The conceptual framework with hypotheses implemented Product expertise H3a H3b + H3c + Range of mass Perceived creativity H2a H1b + customization choices Perceived enjoyment Intention to use OMCS H2b + H2c + 18 H1a + Perceived control H1c + Online Mass Customization of Cars M.J. Overbeek - 402629 3.4. Overview of the hypotheses Table 1: Overview of the hypotheses Hypotheses H1a Greater perceived creativity in online mass customization increases intention to use H1b Greater perceived enjoyment in online mass customization increases intention to use H1c Greater perceived control in online mass customization increases intention to use H2a When the range of online mass customization choices decreases, perceived creativity increases. H2b When the range of online mass customization choices increases, perceived enjoyment increases H2c When the range of online mass customization choices increases, perceived control increases 19 Online Mass Customization of Cars H3a M.J. Overbeek - 402629 Product expertise decreases the effect of range of online mass customization choices on perceived creativity H3b Product expertise increases the effect of range of online mass customization choices on perceived enjoyment H3c Product expertise increases the effect of range of mass customization choices on perceived control 4. Methodology 4.1. Data collection The method of a survey will be applied in order to collect data for this research. According to Malhotra et al. (2006) the main advantages of surveys are the simplicity, ease and reliability. Surveys collect data from its respondents by asking questions about what they do, how they think and who they are (Balnaves & Caputi, 2001). Andrews (1984) doubts the validity of data derived from surveys because respondents often seem to give socially desirable answers. Piko (2006) recognises this issue and his advice is to stress the anonymity in the survey, consequently the results will be as close to the truth as possible. At the beginning of the survey is stated that people who fill in the survey completely, have a chance to win a gift. Giving a reward is a recommendation of Piko (2006) to increase the response rate of a survey. The data will be collected in an online environment by using the online survey tool ‘Qualtrics’ (2015). Malhotra et at. (2006) found out that surveys on the internet have as main advantages that respondents can fill in the survey at ease and the collection of data is relatively cheap and 20 Online Mass Customization of Cars M.J. Overbeek - 402629 easy to gather. Wright (2005) recognizes the speed of gathering data on the internet and also states that the analysis could be faster than hand-filled surveys since computers do not make counting mistakes. Respondents will in the first instance also be approached on the internet, with communication mails asking tools such for as Facebook, participation 4.2. in LinkedIn the The and by online sending e- survey. Questionnaire In the English questionnaire, two different scenarios will be applied. These two scenarios are related to the range of customization chices. In both scenarios, respondents get the same assignment to customize a car website towards their own preferences on an external, existing. When they have done this, the respondents have to return to the survey and need to answer questions related to the just fulfilled customization assignment. In the first scenario, respondents will be send to a car customization website with a relatively small range of customization choices. After answering the first scenario-related questions, respondents are send to the second scenario with many more customization choices. This OMCS is less constrained compared to the program from the first scenario but in both scenarios the same type of car is being used, a Renault Twingo. The website from the first scenario is Justlease.nl (Justlease, 2015) and the second website is from Renault itself (Renault, 2015). The questions related to the scenarios are all fixed-response questions and the data collected in this research is therefore of a quantitative sort. This type of data has as main advantage that it makes analysis, coding and interpretation of the data more easy. This data is also useable for comparing while the fixed-response aspect reduces the variability of the survey results (Malhotra et al., 2006). According to Babbie (2004) this research could also be considered a cross-sectional study, while the data arises from a sample at one time period. In order to answer the survey questions, respondents do not need prior knowledge about cars or mass customization in general. The survey is relatively easy to understand and so appropriate for a large target group. 4.3. Measurements of the questionnaire In this section the content of the questionnaire will be explained. A complete overview of the scale items could be found table 2. 21 Online Mass Customization of Cars 4.3.1. Range M.J. Overbeek - 402629 of mass customization choices No direct survey questions are attached to this variable while it is included in the two different scenarios of the survey. With regard to the analysis, the customization program with the small range of choices gets the label ‘0’ and the more extensive program will receive the label ‘1’. 4.3.2. Intention to use an OMCS In line with the research from Dellaert & Dabholkar (2009), their scale items will be applied which correspond with the variables from our conceptual framework. With regard to the intention to use an OMCS, the question they used in order to measure this variable is: “If a mass customization option, as described in the scenario, was available to you, would you make use of it?” (p. 69). This question will be modified slightly while this research does not offer a fictitious scenario in the survey like they did. The question in order to measure ‘intention to use an OMCS’ will therefore be: if an online mass customization system, like you just worked with, was available to you, would you make use of it? The corresponding scale of this variable is a 100% percentage scale, derived from the Ruler and Option scale (Michell, 1997). A 100% percentage scale starts at 0% and ends at 100%, in between are 100 markers which could be selected. The usage of a 100% percentage scale will provide a sensitive measurement of someone’s attitude, 4.3.3. in this case Consumer their intention perceptions to use an of OMCS. creativity This variable, as well as the variables in sections 4.3.4., 4.3.5. and 4.3.6., will be assessed according to the 7-point Likert scale. Where ‘1’ means strongly agree and ‘7’ means strongly disagree, this agreement scale is an advice of Braunsberger and Gates (2009). The two questions with regard to the variable ‘perceived creativity’ are inspired by the research from Füller et al. (2009), these two questions are: - I considered myself as an inventive kind of person during the customization process. - I considered myself as creative and original in my thinking and behaviour during the customization 4.3.4. process. Consumer perceptions of enjoyment With regard to this variable, the questions from the research by Füller et al. (2009) will be 22 Online Mass Customization of Cars used, M.J. Overbeek - 402629 these - three questions “Participation - was Participation - Participation 4.3.5. are: fun was was Consumer enjoyable exiting” (p. perceptions 85) of control The scale items of this variable are derived from the research by Dellaert & Dabholkar (2009). The questions are the following: - I am satisfied with the amount of control I have over the customization process provided in the scenario - The customization process, portrayed in the scenario, will give me control over designing my 4.3.6. own car Product expertise The questions related to the variable ‘product expertise’ are based on the research from Siemens et al. (2006), the questions to measure ‘product expertise’ are therefore as follows: - I - 23 am I I experienced perceive am myself knowledgeable in the as with field a regard of car cars expert to cars Online Mass Customization of Cars Table 2: The M.J. Overbeek - 402629 scale items of the variables Variable Questions Scale Intention to use If an online mass customization system, like 100% percentage you just worked with, was available to you, would you make use of it? (Dellaert & Dabholkar, 2009) Consumer perception - I considered myself as an inventive kind of of creativity person during the customization process 7-point Likert - I considered myself as creative and original in my thinking and behaviour during the customization process (Füller et al., 2009) Consumer perception - Participation was fun of enjoyment - Participation was enjoyable 7-point Likert - Participation was exiting (Füller et al., 2009) Consumer perception - I am satisfied with the amount of control I of control have over the customization process provided in the scenario 24 7-point Likert Online Mass Customization of Cars M.J. Overbeek - 402629 - The customization process, portrayed in the scenario, will give me control over designing my own car (Dellaert & Dabholkar, 2009) Product expertise - I am experienced in the field of cars 7-point Likert - I perceive myself as a car expert - I am knowledgeable with regard to cars (Siemens et al., 2006) 4.4. Control variables Some of the chosen control variables are of demographic nature, such as age and gender. It could be possible that younger people are more known with the internet and therefore more likely to use an OMCS in general. Besides this data, some questions will be about the respondent’s familiarity with online mass customization and mass customization in a traditional retail setting. Other control variables are more car-related such as whether respondents have a driving licence or own a car. While the customization program has a car theme, it is conceivable that respondents which are more familiar with cars have a higher intention to use this specific OMCS. A control variable specificially related to the amount of choices will test how respondents perceive the amount of choices. Reutskaja and Hogarth (2005) state that choice satisfaction has an inverted U-shaped relationship with the amount of alternatives in the choice set. Having too few choices is not preferable, but having too many options is not either. The survey question to test this phenomenom will be: “Do you feel you had the right amount of options to choose from?” (Reutskaja & Hogarth , 2005, p. 12). This question could be answered according a 9-point Likert scale, where “1 = “No, I had too few choice options,” 5 = “Yes, I had just the right number of choice options,” and 9 = “No, I had too many choice options” “ (Reutskaja & Hogarth , 2005, p. 12). The variable ‘range of customization choices’ that will be 25 Online Mass Customization of Cars M.J. Overbeek - 402629 used in the hypotheses testing is scenario-given, but this control variable will measure the respondent’s opinion about the range of customization choices. 5. Analysis and Results The questionnaire was online for thirty days and 147 persons filled in the questionnaire in that time period . After studying the data it turned out that 44 questionnaires contained missing values. These persons abandoned the questionnaire in an early stage, mainly at the point where the respondent had to visit one of the two external customization websites. It seems that some people are not willing to put some effort in filling in a questionnaire. So when these people noticed that they had to visit an external website as part of the questionnaire, the required effort was apparently too much to ask. Therefore, these 44 responses were deleted from the dataset which led to a final total of 103 respondents (N= 103). So 70,07% of the respondents that started the online questionnaire actually completed it. With regard to the demographics of the final sample, it turned out that 62,14% of the respondents was male and 37,86% was female. The majority of the respondents had the Dutch nationality, to be precise 89,32% of them. Other more car-related data shows that 76,69% of the respondents has a driving license and 47,57% of the respondents owns a car. The percentage that owns a car seems to be relatively low, but this is probably caused by the age of our sample. The mean age of the sample is 25,55 years, but even more interesting is that 75,73% of the respondents is 25 years old or younger. Respondents had on average more experience with online mass customization than with mass customization in a traditional retail setting, 43,69% and 34,95% respectively. This outcome is probably also caused by the age of 26 Online Mass Customization of Cars our sample, instead of younger that people more M.J. Overbeek - 402629 have less online offline experience shopping (Wan experience et al., but 2012). The first step of analyzing the sample data will be the application of a factor analysis. This is an useful method in order to reduce the large amount of survey questions. This factor analysis will first test the validity and after that a reliability test will be performed on the questions which, according to the factor analysis, belong to one variable. The Cronbach alpha will then be studied and when all these findings are appropriate, a regression analysis will be performed 5.1. to test the hypotheses. Factor analysis While two different scenarios were used in the questionnaire, the factor analysis will be divided per scenario. The outcomes of the factor analysis will then also be less extensive and therefore easier to interpret. Like shown in table 2, four factors are expected to emerge in the factor analysis. These factors are the four variables which consist of more than one survey question: product expertise, perceived creativity, perceived control and perceived enjoyment. The factor analysis of scenario ‘0’ will first be performed, the scenario with the small range of choices. In both scenarios the variable ‘product expertise’ is constant while the questions 5.1.1. of this Scenario variable are not ‘0’ with the attached to one of the scenarios. small range of choices In this first factor analysis the variables Experience (1,2,3), Creativity_0 (1,2), Enjoyment_0 (1,2,3) and Control_0 (1,2) are implemented, these variables could be found in Appendix B.1. A fixed number of four factors is set while this is given by the theoretical framework. For results of the factor analysis, see appendix C.1. To check the reliability of the performed factor analysis, the Kaiser-Meyer-Olkin measure of sampling adequacy and the Bartlett’s test of sphericity will be studied. The Kaiser-Meyer-Olkin measure of sampling adequacy turns out to be 0,82. This is an appropriate value while Field (2013) states that values above 0,50 are acceptable and values between 0,80 and 0,90 are even great. The Bartlett’s test of sphericity seems to be good as well, this value is highly significant with a value of 0,00. Now both indicators show that the factor analysis is appropriate, the factor loadings from the 27 Online Mass Customization of Cars M.J. Overbeek - 402629 rotated component matrix will be highlighted. In order to make interpretation and comparison more easily loadings below 0,50 are suppressed. Field (2013) states that these loadings do not provide sufficient content about the underlying dimension. The four factors explain 91,06% of the cumulative variance and the factor loadings score high on their own factor and lower then 0,50 on the other factors. This confirms the statements from the methodology, the lowest loading is 0,70 and the highest loading is 0,94.. This scenario seems to pass the factor analysis. The same method of analysis will now be applied on the other scenario with the wide range of customization choices. 5.1.2. Scenario ‘1’ with the wide range of choices In this second factor analysis the variables Experience (1,2,3, Creativity_1 (1,2), Enjoyment_1 (1,2,3) and Control_1 (1,2) are implemented, which could be found in Appendix B.1. The same methods are being used like discussed in the previous section, for results see Appendix C.2. The Kaiser-Meyer-Olkin measure of sampling adequacy is 0,75, slightly lower compared to the first factor analysis. Values between 0,70 and 0,80 are perceived as good (Field, 2013) so the Bartlett’s test of sphericity will now be highlighted. The significance level is equal to the first analysis, a level of 0,00. The rotated component matrix shows good outcomes as well, all factor loadings score again high on their own factor and lower then 0,50 on the other factors. The four factors explain 86,80% of the cumulative variance. Both scenarios seem to pass 5.2. the factor analysis. Reliability test The factor analyses showed existing constructs in the dataset. At this section the reliability of the questions that form a construct will studied by using the Cronbach’s Alpha. According to Field (2013) the Cronbach’s Alpha could have a score between 0 and 1, scores above 0,70 are generally perceived as reliable and the closer to 1, the more reliable these questions are. For instance, the following questions form the construct ‘product expertise’: I am experienced in the field of cars, I perceive myself as a car expert and I am knowledgeable with regard to cars. The Cronbach’s Alpha of these three questions measured is 0,93. This value is larger than 0,70 and close to 1 so there could be stated that these questions are reliable in testing the same construct. 28 This analysis is applied to the six other constructs as Online Mass Customization of Cars well and the results can M.J. Overbeek - 402629 be seen in table 3 on the next page. Table 3: The Cronbach’s Alpha outcomes Construct Cronbach’s alpha N of items Experience 0,93 3 Creativity_0 0,94 2 Enjoyment_0 0,96 3 Control_0 0,89 2 Creativity_1 0,84 2 Enjoyment_1 0,90 3 Control_1 0,84 2 All Cronbach‘s alpha values turn out to be high with values between 0,84 and 0,96. The seven constructs can therefore be perceived as relatively reliable with regard to the related survey questions. Before starting with the regression analysis, the survey questions that belong to one construct will first be joined together. Since all corresponding questions have the same 7point Likert scale, the new variables could be computed by summing up the corresponding questions and after that dividing by the same number of questions. Here some examples: ‘Product expertise ‘Creativity_0 5.3. = = (Expertise1 + (Creativity1_0 Expertise2 + Hypotheses + Expertise3) Creativity2_0) / 3’ / and 2’. testing A linear regression analysis will now be applied in order to test the hypotheses from the conceptual framework, like shown in table 1. Before starting with these regressions, the 29 Online Mass Customization of Cars M.J. Overbeek - 402629 variables of the two scenarios need to be merged. This is done by creating a dummy variable called ‘scenario’ which has the label ‘0’ or ‘1’ where ‘0’ applies to the customization program with the small range of choices and ‘1’ to the more extensive customization program. By implementing this dummy variable, the N of our dataset doubles because the scenariodependent variables of each respondent gets separated. Now each respondent appears twice in the dataset, once with variables concerning scenario ‘0’ and once with scenario ‘1’ variables. The descriptive statistics of the adapted dataset can be seen in appendix B.2. It is now possible to study the difference in average intention to use between the two scenarios. The mean intention to use of scenario ‘0’ turns out to be 51,00% and the mean intention to use of scenario ‘1’ is 74,18%, see appendix B.3. The intention to use the online mass customization program with the wide range of customization choices is on average higher compared 5.3.1. to Regression the one analysis with for the the small intention range to use of choices. an OMCS The usage of this regression analysis will test the hypotheses H1a, H1b and H1c. The dependent variable is ‘intention to use’ which is measured by a 100% percentage scale . The independent variables are ‘perceived creativity, enjoyment and control’, all measured by a 7point Likert scale. The R² value of the model is 0,472 which implies that 47,20% of the variance between these variables is explained by this model. The model is further significant as a whole with F= 62,15 and p=0,00. The outcomes of the regression analysis can be seen in table 4 below. Table 4: Regression analysis for the intention to use an OMCS Variable Unstandardized coefficients Significance (Constant) 9,68 0,02 Creativity 1,61 0,14 Enjoyment 8,86 0,00 Control 1,76 0,16 According to these results, only hypothesis H1b could be supported. The variable perceived enjoyment has a significant (p= 0,00) and positive (B= 8,86) effect on intention to use. This 30 Online Mass Customization of Cars M.J. Overbeek - 402629 implies that if the 7-point Likert scale of perceived enjoyment increases with ‘1’, the intention to use the mass customization system increases with 8,86%, ceteris paribus. This positive influence corresponds with the direction of hypothesis H1b. Hypotheses H1a and H1c will be rejected while both variables proved to have an insignificant effect on intention to use 5.3.2. (respectively Regression p=0,14 analysis for and p=0,16). perceived creativity With the regression analysis below, hypothesis H2a ‘when the range of online mass customization choices decreases, perceived creativity increases’ will be tested. In this model the variable ‘perceived creativity’ is the dependent variable and ‘scenario’ is the independent variable. This variable indicates whether a respondent had a limited or extensive customization program. The R² value is 0,130 which implies that 13,00% of the variance between these variables is explained by this model. The model is significant as a whole with F= 30,46 and p=0,00. The results of the regression analysis can be seen in table 5 below. Table 5: Regression analysis for perceived creativity Variable Unstandardized coefficients Significance (Constant) 3,55 0,00 Scenario 1,09 0,00 The results of this regression analysis do not support hypothesis H2a. The variable ‘scenario’ has a significant (p= 0,00) and positive (B= 1,09) effect on perceived creativity. The significance is thus good, but the direction of the effect does not correspond with the hypothesis. There was stated that a negative effect should occur, but apparently perceived creativity increases when 5.3.3. faced to a customization Regression program analysis with for a wide range perceived of choices. enjoyment This regression analysis will test hypothesis H2b ‘when the range of online mass customization choices increases, perceived enjoyment increases’. In this model the variable ‘perceived enjoyment’ is the dependent variable and ‘scenario’ is the independent variable. The R² value is 0,289 which implies that 28,90% of the variance between these variables is explained by this 31 Online Mass Customization of Cars M.J. Overbeek - 402629 model. The model is further significant as a whole with F= 83,02 and p=0,00. The outcomes of the regression analysis can be seen in the table below. Table 6: Regression analysis for perceived enjoyment Variable Unstandardized coefficients Significance (Constant) 3,59 0,00 Scenario 1,57 0,00 The outcomes of this regression analysis support hypothesis H2a. The variable ‘scenario’ has a significant (p= 0,00) and positive (B= 1,57) effect on perceived creativity. The overall perceived enjoyment is thus a mean of 1,57 point higher when faced to an extensive customization program instead to a customization program with a small range of choices, ceteris paribus. This corresponds with the findings from Ryan & Deci (2000) who stated that a feeling of freedom during a task, in this case by having a wide range of choices, increases the perceived 5.3.4. Regression analysis enjoyment. for perceived control The usage of this regression analysis will test hypothesis H2c ‘when the range of online mass customization choices increases, perceived control increases’. In this model the variable ‘perceived control’ is the dependent variable and ‘scenario’ is the only independent variable. The R² value is 0,204 which implies that 20,40% of the variance between these variables is explained by this model. The model is significant as a whole with F=52,33 and p=0,00. The results of the regression analysis can be seen in table 7 below. Table 7: Regression analysis for perceived control Variable Unstandardized coefficients Significance (Constant) 3,55 0,00 Scenario 1,47 0,00 The results of this regression analysis support hypothesis H2c. The variable ‘scenario’ has a 32 Online Mass Customization of Cars M.J. Overbeek - 402629 significant (p= 0,00) and positive (B= 1,47) effect on perceived control. The overall perceived control is thus a mean of 1,47 point higher when faced to an extensive customization program instead of a customization program with a small range of choices, ceteris paribus. More choices apparently increase the sense of having control over performing the customization task. 5.3.5. Regression analysis for moderating effect of product expertise on perceived creativity The following three regression analyses will test the interaction effect of product expertise like stated in hypothesis H3a, H3b and H3c. First hypothesis H3a will be tested, in this case ‘product expertise’ should have an interaction effect with ‘scenario’ which has a negative influence on perceived creativity. ‘Product expertise’ is in the model implemented as a separate variable and as an interaction variable with ‘scenario’. The R² value of the model is 0,164 which implies that 16,40% of the variance between these variables is explained by this model. The model is further significant as a whole with F=13,16 and p=0,00. The outcomes of the regression analysis can be seen in table 8 below. Table 8: Regression analysis for perceived creativity Variable Unstandardized coefficients Significance (Constant) 3,20 0,00 Scenario 0,69 0,13 Product expertise 0,03 0,23 Scenario x Product expertise 0,04 0,33 The results of this regression analysis are obvious, none of the variables implemented has a significant effect. The variable ‘product expertise’ has no significant effect on perceived creativity at itself (p= 0,23) and no significant effect as an interaction variable together with scenario (p= 0,33). The level of product expertise has apparently no effect on perceived creativity in a direct or indirect way. 5.3.6. Regression analysis for moderating effect of product expertise on perceived 33 Online Mass Customization of Cars M.J. Overbeek - 402629 enjoyment This regression analysis will test hypothesis H3b ‘product expertise increases the effect of range of online mass customization choices on perceived enjoyment’. The independent variables of this model are the same like the variables of table 8 and the dependent variable is now ‘perceived enjoyment’. The R² value of this model turns out to be 0,302 which implies that 30,20% of the variance between these variables is explained by this model. The model is significant as a whole with F=29,17 and p=0,00. The results of this regression analysis can be seen in table 9 on the next page. Table 9: Regression analysis for perceived enjoyment Variable Unstandardized coefficients Significance (Constant) 3,99 0,00 Scenario 0,88 0,03 Product expertise -0,04 0,12 Scenario x Product Expertise 0,07 0,06 The results of this regression analysis do not support hypothesis. The interaction variable has the right positive direction (B= 0,07) but is just not significant (p= 0,06). The variable ‘scenario’ at itself is now significant (p=0,03) and has a positive effect (B= 0,88). This is in line with the supported outcome of hypothesis H2b which showed the same result. Product expertise is as an independent variable not significant (p= 0,12), but this is not surprising since we only assumed an indirect effect of product expertise. The indirect effect of product expertise (p= 0,06) is in fact more significant compared to the direct effect of product expertise (p= 0,12), so this is in line with that assumption. However hypothesis H3b still needs to be rejected while the significance level is slightly too low given a significance level of 0,05. 5.3.7. Regression analysis for moderating effect of product expertise on perceived control At this section hypothesis H3c ‘product expertise increases the effect of range of online mass customization choices on perceived control’ will be tested. Hypothesis H3a and H3b proved to be insignificant, knowing that, it is likely that ‘product expertise’ does not have an indirect effect at hypothesis H3c as well. The R² value of this model is 0,21 which means that 21,00% 34 Online Mass Customization of Cars M.J. Overbeek - 402629 of the variance between these variables is explained by the model. This model is further significant as a whole with F=17,99 and p=0,00. The outcomes of the regression analysis can be seen in table 10. Table 10: Outcomes regression analysis for perceived control Variable Unstandardized coefficients Significance (Constant) 3,91 0,00 Scenario 0,95 0,05 Product expertise -0,03 0,23 Scenario x Product expertise 0,05 0,23 The results of this regression analysis do not support hypothesis H3c. The interaction variable ‘scenario x product expertise’ has the right positive direction (B= 0,05), but is not significant (p= 0,23). Product expertise does not have a significant indirect effect on perceived control (p= 0,23) and does not have a direct effect on perceived control (also p= 0,23). The variable ‘scenario’ is again significant (p=0,05) and has a positive effect (B= 0,95). This is in line with the supported outcome of hypothesis H2c that showed the same result. Now with the presence of other independent variables, ‘scenario’ has the same positive effect on perceived control. More choices increase the sense of having control over a customization task, but the existence 35 of product expertise does not influence this relationship. Online Mass Customization of Cars M.J. Overbeek - 402629 5.3.8. Overview results of hypotheses testing Table 10: The results of the hypotheses testing Hypotheses H1a Result Greater perceived creativity in online mass customization Rejected increases intention to use H1b Greater perceived enjoyment in online mass customization Supported increases intention to use H1c Greater perceived control in online mass customization Rejected increases intention to use H2a When the range of online mass customization choices Rejected decreases, perceived creativity increases. H2b When the range of online mass customization choices Supported increases, perceived enjoyment increases H2c When the range of online mass customization choices Supported increases, perceived control increases H3a Product expertise decreases the effect of range of online Rejected mass customization choices on perceived creativity H3b Product expertise increases the effect of range of online Rejected mass customization choices on perceived enjoyment H3c Product expertise increases the effect of range of mass customization choices on perceived control 36 Rejected Online Mass Customization of Cars 5.4. M.J. Overbeek - 402629 Mediation analysis According to the conceptual framework from figure 2, there could probably exist a mediation effect while the range of customization choices could influence the dependent variable ‘intention to use’ indirectly. This could be facilitated by the variables ‘perceived creativity, enjoyment and control’. In order to test this, a mediation analysis will be performed according to the method from Preacher and Hayes (2008). Their analysis offers the possibility to perform a test with multiple mediators implemented. Since this frameworks deals with three possible mediators, this seems to be an appropriate method of analysis. Preacher and Hayes (2008) provide a SPSS software tool on their website (Hayes, 2015) with which the analysis could be performed. ‘Intention to use’ is implemented as the dependent variable (DV), ‘scenario’ as the independent variable (IV) and perceived creativity, enjoyment and control as the proposed mediators (MEDS). The complete outcome of the analysis could be found in appendix E.8., in the tables below a summary of the results. Note that in this analysis the constant is taken into account, but is not shown in the output of this external SPSS software tool. Table 11: Outcomes of mediating analysis, IV to Mediators (a paths) Variable Coefficient Significance Creativity 1,09 0,0000 Enjoyment 1,57 0,0000 Control 1,47 0,0000 Table 12: Outcomes of mediating analysis, Direct Effects of Mediators on DV (b paths) 37 Variable Coefficient Significance Creativity 1,55 0,15 Enjoyment 7,76 0,00 Control 1,60 0,20 Online Mass Customization of Cars 38 M.J. Overbeek - 402629 Online Mass Customization of Cars M.J. Overbeek - 402629 Table 13: Outcomes of mediating analysis, Total Effect of IV on DV (c path) Variable Coefficient Significance Scenario 23,18 0,0000 Table 14: Outcomes of mediating analysis, Direct Effect of IV on DV (c' path) Variable Coefficient Significance Scenario 6,95 0,02 The R² value of the total model (Appendix E.8) turned out to be 0,4942 which implies that 49,42% of the variance between these variables is explained by this model. The model is further significant as a whole with F=49,11 and p=0,00. The results show that scenario (IV) has a significant influence on all three mediators. However, the mediators do not all have a significant effect on intention to use (DV), in fact only enjoyment has a positive (B= 7,76) and a significant influence (p= 0,00). When focussing on the effect of scenario (IV) on intention to use (DV) there could be noticed that the total effect (B= 23,18 and p= 0,00) and the direct effect (B= 6,95 and p= 0,02) both are significant. The indirect effect that implies the mediation effect could be calculated by subtracting the direct effect from the total effect, thus the indirect effect has an impact of ‘16,23’ (23,18 6,95). The indirect effect is more than two times as large as the direct effect of scenario (IV) on intention to use (DV). A strong partial mediation exists where the mediated (indirect) effect is larger compared to the direct effect. This mediation is according to table 12 only facilitated by the variable ‘perceived enjoyment’ while this is the only mediator with a significant effect on intention to use (DV). All of these results are shown in figure 3. Here the outcomes of the mediation ‘N.S.’ 39 analysis are implemented means in the conceptual not framework, where significant. Online Mass Customization of Cars M.J. Overbeek - 402629 Figure 3: The outcomes of the mediation analysis displayed in the conceptual framework Perceived creativity N.S. + Range of mass + customization Intention to Perceived enjoyment choices use OMCS + (Scenario) + Perceived control + 40 N.S. Online Mass Customization of Cars 5.5. Regression analysis M.J. Overbeek - 402629 with control variables This regression analysis will test whether the measurable control variables from our questionnaire have an influence on the intention to use an OMCS. These control variables are: gender, age, experience_traditional, experience_online, drivinglicence, carowner and amountchoices. With these variables implemented in the regression on intention to use, the R² of the model is 0,532, which implies that 53,20% of the variance between these variables is explained by the model. This model is significant as a whole with F=18,27 and p=0,00. The results of the regression analysis can be seen in table 15 below. Table 15: Regression analysis for the intention to use with control variables implemented Variable Unstandardized coefficients Significance (Constant) 27,55 0,00 Scenario 7,02 0,02 Gender -6,89 0,02 Age -0,35 0,02 Experience_traditional 2,94 0,33 Experience_online -0,71 0,80 Drivinglicense 3,45 0,24 Carowner 0,02 0,99 Amountchoices 0,14 0,87 Product Expertise -0,69 0,02 Creativity 1,54 0,16 Enjoyment 8,10 0,00 Control 1,08 0,44 The outcomes of the regression analysis show that two out of the seven control variables have a significant influence on the dependent variable ‘intention to use’. Gender (male= 1, female= 0) is the control variable that is significant (p= 0,02) and has a high coefficient (B= -6,89). This implies that if a respondent is a male, the overall intention to use is a mean of 6,89% lower than when a respondent is a female, ceteris paribus. The other significant control variable is age (p= 0,02); this variable has a negative influence on intention to use (B= -0,35). 41 Online Mass Customization of Cars M.J. Overbeek - 402629 This implies that if a respondent is older, the intention to use an online customization program will be lower in general. This outcome seems to be quite logical, while younger people are generally more used to the internet compared to older people. The familiarity with internet could increase the intention to use an OMCS. Another notable outcome of this regression analysis is the effect of product expertise on intention to use an OMCS (B= -0,69 and p= 0,02). This implies that a higher amount of product expertise decreases the intention to use an OMCS, ceteris paribus. Product expertise could apparently have an effect on the dependent variable ‘intention to use’ on itself, but not while interacting with ‘scenario’. It is still unclear whether the two significant control variables (age and gender) do have an interaction effect with ‘scenario’ on the intention to use an OMCS. Therefore, two interaction variables are composed: ‘Gender x Scenario’ and ‘Age x Scenario’. After the addition of these two variables to the previous regression analysis , the R² of the model becomes 0,535 which implies that 53,50% of the variance between all these variables is explained by the model. This model is significant as a whole with F=15,67 and p=0,00. The outcomes of the regression analysis can be seen in table 16 on the next page. 42 Online Mass Customization of Cars M.J. Overbeek - 402629 Table 16: Regression analysis for the intention to use with ‘Gender_Scenario’ & ‘Age_Scenario’ Variable Unstandardized coefficients Significance (Constant) 31,14 0,00 Scenario -0,57 0,94 Gender -6,53 0,09 Age -0,50 0,02 Experience_traditional 2,87 0,34 Experience_online -0,70 0,80 Drivinglicense 3,44 0,25 Carowner 0,10 0,97 Amountchoices 0,03 0,98 Product Expertise -0,69 0,02 Creativity 1,63 0,14 Enjoyment 8,12 0,00 Control 1,16 0,41 Gender x Scenario -0,75 0,88 Age x Scenario 0,30 0,29 None of the composed interaction variables turn out to be significant (p=0,88 and p=0,29). By the addition of these two variables, ‘gender’ at itself turns from a significant effect into an insignificant effect on ‘intention to use’. The same applies to ‘scenario’ and that is especially striking while its previous effect on ‘intention to use’ was significant. This finding supports the result at section 5.4 which showed a strong partial mediation with regard to the effect of ‘scenario’ on the intention to use an OMCS. This mediation is facilitated by ‘perceived enjoyment’, but there could exist more hidden variables that mediate this relationship. The high p-value of ‘scenario’ (p=0,94) indicates that the direct effect on ‘intention to use’ is not that 43 large when several variables are included in the regression analysis. Online Mass Customization of Cars M.J. Overbeek - 402629 6. Conclusion The main question of this research was ‘what are the main drivers for consumers to participate in online mass customization systems of cars?’. There exists one obvious driver according to the outcomes and that is the level of perceived enjoyment in the customization process. When consumers enjoy the online customization process of a car more, they have a higher intention to use such an online mass customization program. According to our hypotheses the same holds for the role of perceived control and perceived creativity, but both effects proved to be insignificant in the regression analyses. Besides the role of these consumer perceptions, the system features have an influence as well. In this study ‘the range of mass customization choices’ was the only system-feature related variable and this variable seems to have a positive, direct effect on the intention to use an OMCS. But its indirect effect proves to be even larger, mediated by the perceived enjoyment of the respondents involved. 6.1. Theoretical implications The main outcome of this research is the finding that perceived enjoyment positively effects intention to use an OMCS. This is in line with the findings from Dellaert & Dabholkar (2009) who investigated the intention to use an online jeans mass customization system. Although cars are a completely different product group, the same results were obtained in this research. This outcome supports the statements from Franke et al. (2010) who emphasized the ‘I designed It myself’ effect where enjoyment during the customization process is an important motivation in order to engage in online mass customization. Another finding from Dellaert & Dabholkar (2009) did not get supported in this research. Perceived control did positively influence the intention to use an OMCS, but this effect was not significant. The same applied to the relationship between perceived creativity and intention to use an OMCS. Here a positive influence expected, of perceived but creativity this on effect the intention proved to to use be an OMCS was insignificant. With regard to the relationship between the system feature ‘range of mass customization choices’ and the three consumer perceptions, all three relationship turned out to be significant and positively related. Consequently, when the range of online mass customization choices increases, perceived creativity, enjoyment and control also increase. This conclusion 44 Online Mass Customization of Cars M.J. Overbeek - 402629 is, with regard to the last two consumer perceptions, in line with the assumptions. However, a negative relationship between the range of customization choices and perceived creativity was expected. Evidence from Moreau and Dahl (2005) and Ridgeway and Price (1994) states that consumers become more creative when they face a more constrained environment. This concept does not hold in this study with its car setting. This could be caused by the fact that performing task of an preparing online a meal car (Ridgeway customization task & are Price, 1994) and quite the different. Perceived control increases with a wider range of customization choices, This conclusion is in line with earlier research from Veitch & Gifford (1996) which stated that individuals prefer to have choices in order to have a sense of personal control. Personal control implies that a person has the perception that the choices he or she makes do actually matter (Ward & Barnes, 2001). The positive relationship between range of customization choices and ‘perceived enjoyment’ re-confirms the "I designed It myself" theory from Franke et. al. (2010). This theory indicates that consumers prefer lots of customization choices in order to like the customization process. Ryan & Deci (2000) also stated that a strict set of instructions decreases an individual’s perception of autonomy during a task. The interaction effect of product expertise with range of customization choices was not proven in any way. This outcome is in contrast with evidence from Chase and Simon (1973) which state that individuals with product expertise are less subject to the ‘overchoice’ effect. 6.2. Managerial implications Based on the results of this study, several managerial implications could be named. With regard to car manufacturers who offer these kind of OMCS on their corporate websites, they need to be aware that enjoyment plays a major role in order to use such a system. When these companies make use of a basic OMCS with, for instance, a main focus on the prices of car options, the attractiveness to consumers decreases. In this regard a distinction should be made between premium and less-premium car manufacturers. A less-premium car manufacturer like Dacia should perhaps use a less fancy, more ‘price-focused system’ while their cars are price-focused as well. But this system should also not be too basic, knowing the role of enjoyment in the customization process. Porsche, in contrast, a more premium car maker, would probably benefit from a more luxurious look with less attention for pricing 45 Online Mass Customization of Cars M.J. Overbeek - 402629 features in the OMCS they offer. They have to provide an optimal online customization experience with a main focus on creating enjoyment, just like their sport cars offer driving enjoyment for their owner. What Porsche and Dacia do have in common is that they give the instructions on the content of their OMCS to software developers. The car manufacturers decide, of course, the range of customization choices offered in the system. This study proves that a wide range of customization choices increases the intention to use an OMCS in a direct and indirect way. It cannot be stated that more choices are always better but it seems to be clear that car manufacturers should not offer too few choices. Especially since a small range of customization choices decreases the enjoyment of the customization process. A wellconsidered decision of the range of customization choices seems to be crucial to the success of an OMCS. A car manufacturer could carry out a market research in an early design stage of their OMCS in order to make this decision in a substantiated way. Although car manufacturers offer these customization systems on their corporate website, software developers have to build these systems. Knowing that system features could influence the enjoyment of the customization process. For software developers it is crucial to know which other system features are able to influence the consumer’s perceived enjoyment positively. These software developers could also apply market research in order to discover which system features increase the customization experience as well. This market research should be customer dependent knowing the ‘Dacia-Porsche’ example. When a software developer implements the insights from their market research in an effective way in their systems 6.3. his services will Limitations be better and appreciated by further his customers. research The first limitation of this research is the representativeness of our sample with regard to the population involved. The average age of our sample was relatively low with a mean of 25,55 years and besides that, 75,73% of the sample was 25 years old or younger. In order to obtain more reliable results, the sample could have used more older respondents. In fact now just 47,57% of the sample owns a car, with a higher mean age of the sample this percentage will probably also increase. For further research it could especially be interesting to study in what 46 Online Mass Customization of Cars M.J. Overbeek - 402629 degree older people respond to online customization systems. Younger people have more online experience (Wan et al., 2012), so they are in general probably more intended to use these kinds of systems. Car manufacturers could especially be interested in how to approach a relatively older group in an online environment. The theory that was explicitly proven in this research is the ‘I designed It myself’ effect from Franke et. al. (2010). Fun during the customization process seems to be an important motivation for consumers to engage in online mass customization of cars. According to the results, this enjoyment could be increased by offering a wide range of customization choices. There could, however, exist more system features that are able to increase the perceived enjoyment. Think of features such as the use of video graphics, background music, colours or the lay-out in general. This study was not able to test the influence of other system features of an OMCS, so this could be of interest for further research. Elaborating on this, might consumers appreciate a mobile application with which they are able to customize a car? All of these considerations could be of interest for parties involved in the development of online mass customization systems and could therefore pose interesting questions for further research. Another limitation of this research is the validity of the data. Validity can be defined as “the extent to which an account accurately represents the social phenomena to which it refers” (Silverman, 2011, p. 367). Data acquired from Likert-scales is from an ordinal sort, called ordinal data. The main issue according to Jamieson (2004) is that the particular intervals between each response category cannot be measured. Another validity aspect is the question whether the respondents from the sample answered all questions in an honestly and confidently way. There is evidence that people could answer survey questions in a unreliable way. Research from Zaller and Feldman (1992) states that half of the people who were asked the same question in two different interviews actually gave the same answer the second time. These validity issues could probably be reduced in further research. One possible method to increase the validity of a research is the implementation of triangulation, which implies using multiple methods like combining field research with surveys (Jick, 1979). A limitation that should be noticed as well, is the relatively large difference between the range 47 Online Mass Customization of Cars M.J. Overbeek - 402629 of customization choices between the two scenarios. This research applied a customization system with a few choices and one system with a wide range of choices. In order to get more reliable results, a next research should apply more than two different scenarios with regard to the range of customization choices. 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A well-known example of online mass customization is NIKEiD, at this website consumers are able to customize a pair of sneakers towards their own preferences. Filling in this questionnaire will not take more than ten minutes of your time. At the end of the survey you can leave your email address. By doing this, you will enter a lottery to win a €50 Coolblue gift card. Thanks in advance! Maarten Overbeek Page 2 - Gender: male / female - Age: free to fill in - Highest achieved education level: primary school, high school, HBO bachelor, HBO master, university bachelor or university master? - Experience with mass customization in traditional retail?: yes/no - Experience with online mass customization?: yes/no - I have my driving licence: yes/no - I own a car: yes/no - Which car brand is most likely to become your next car?: free to fill in - I am experienced in the field of cars: 7-point Likert - I perceive myself as a car expert: 7-point Likert - I am knowledgeable with regard to cars: 7-point Likert 55 Online Mass Customization of Cars M.J. Overbeek - 402629 Page 3 Imagine Renault is your favourite car brand and you are looking for a relatively small car. The new Renault Twingo seems to be the perfect car for you with its nice looks and compact sizes. Now please visit the link below in order to customize this car towards your own preferences. After finishing the customization, please return to this questionnaire in order to continue. http://www.renault.nl/showroom/personenautos/twingo/nieuwe-twingo/configurator/ Page 4 Could you please evaluate the customization program you just worked with by answering the following questions: Questions Scale If a mass customization program, like you just worked with, was 100% percentage available to you, would you make use of it? - I considered myself as an inventive kind of person during the 7-point Likert customization process - I considered myself as creative and original in my thinking and behaviour during the customization process - Participation was fun 7-point Likert - Participation was enjoyable - Participation was exiting - I was satisfied with the amount of control I had over the 7-point Likert customization process - This customization process gave me control over designing my own car Do you feel you had the right amount of options to choose from? 9-point Likert Page 5 Imagine again that you are seriously interested in a Renault Twingo. Renault is still your number 1 car brand and you are really in love with the looks of this model. 56 Online Mass Customization of Cars M.J. Overbeek - 402629 Please visit this other customization program with the link below, to customize this car also towards your own preferences. After finishing the customization, please return to this questionnaire in order to finish the last part. https://leasen.nl/model/renault-twingo-sce70/configureer/ Page 6 Could you please evaluate the customization program you just worked with by answering the following questions. Questions Scale If a mass customization option, like you just worked with, was 100% percentage available to you, would you make use of it? - I considered myself as an inventive kind of person during the 7-point Likert task - I considered myself as creative and original in my thinking and behaviour - Participation was fun 7-point Likert - Participation was enjoyable - Participation was exiting - I am satisfied with the amount of control I have over the 7-point Likert customization process provided in the scenario - The customization process, portrayed in the scenario, will give me control over designing my own car Do you feel you had the right amount of options to choose 9-point Likert from? Page 7 This was the survey, thanks for your participation! If you want to enter the lottery to win an €50 Coolblue gift card, please leave your email 57 Online Mass Customization of Cars address here: Appendix B: Frequencies and descriptive Statistics Appendix B.1: The initial dataset 58 M.J. Overbeek - 402629 Online Mass Customization of Cars M.J. Overbeek - 402629 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Gender 103 0 1 ,38 ,487 Age 103 12 64 25,55 8,599 Exp_traditional 103 0 1 ,35 ,479 Exp_online 103 0 1 ,44 ,498 Drivinglicence 103 0 1 ,77 ,425 Carowner 103 0 1 ,48 ,502 Expertise1 103 1 7 3,85 1,779 Expertise2 103 1 7 2,89 1,787 Experitise3 103 1 7 3,88 1,870 Intentiontouse_1 103 10 100 74,18 18,495 Creativity1_1 103 1 7 4,69 1,400 Creativity2_1 103 1 7 4,58 1,369 Enjoyment1_1 103 2 7 5,42 1,151 Enjoyment2_1 103 2 7 5,37 1,138 Enjoyment3_1 103 2 7 4,71 1,257 Control1_1 103 1 7 4,88 1,517 Control2_1 103 1 7 5,15 1,346 Amountchoices_1 103 2 8 5,02 1,578 Intentiontouse_0 103 1 92 51,00 24,415 Creativity1_0 103 1 7 3,59 1,593 Creativity2_0 103 1 7 3,50 1,558 Enjoyment1_0 103 1 7 3,76 1,431 Enjoyment2_0 103 1 7 3,68 1,416 Enjoyment3_0 103 1 7 3,34 1,472 Control1_0 103 1 7 3,57 1,649 Control2_0 103 1 7 3,52 1,656 Amountchoices_0 103 1 8 3,79 2,037 Valid N (listwise) 103 Appendix B.2: The final dataset with ‘scenario’ as dummy variable Descriptive Statistics N Minimum Maximum Mean Std. Deviation Respondent 206 1 103 52,00 29,805 Scenario 206 0 1 ,50 ,501 59 Online Mass Customization of Cars M.J. Overbeek - 402629 Gender 206 0 1 ,38 ,486 Age 206 12 64 25,55 8,578 Exp_traditional 206 0 1 ,35 ,478 Exp_online 206 0 1 ,44 ,497 Drivinglicence 206 0 1 ,77 ,424 Carowner 206 0 1 ,48 ,501 Intentiontouse 206 1 100 62,59 24,532 Amountchoices 206 1 8 4,40 1,920 Expertise 206 3 21 10,63 5,063 Creativity 206 1,00 7,00 4,0922 1,51214 Enjoyment 206 1,00 7,00 4,3786 1,46582 Control 206 1,00 7,00 4,2816 1,62626 Valid N (listwise) 206 Appendix B.3: The compared means of ‘scenario’ and ‘intention to use’ Report Intentiontouse Scenario Mean N Std. Deviation small range of options 51,00 103 24,415 wide range of options 74,18 103 18,495 Total 62,59 206 24,532 Appendix C: Factor Analysis Appendix C.1: Expertise, Creativity_0, Enjoyment_0 and Control_0 60 Online Mass Customization of Cars M.J. Overbeek - 402629 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. ,823 Approx. Chi-Square Bartlett's Test of Sphericity 1017,549 df 45 Sig. ,000 Total Variance Explained Component Initial Eigenvalues Total Extraction Sums of Squared Loadings % of Variance Cumulative % Total % of Variance Cumulative % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 1 5,195 51,947 51,947 5,195 51,947 51,947 2,641 26,407 26,407 2 2,691 26,905 78,852 2,691 26,905 78,852 2,265 22,649 49,057 3 ,802 8,018 86,870 ,802 8,018 86,870 2,118 21,181 70,238 61 Online Mass Customization of Cars 4 ,419 4,188 91,059 5 ,225 2,249 93,308 6 ,217 2,166 95,474 7 ,157 1,572 97,046 8 ,130 1,301 98,347 9 ,101 1,008 99,355 10 ,065 ,645 100,000 M.J. Overbeek - 402629 ,419 4,188 Extraction Method: Principal Component Analysis. Rotated Component Matrixa Component 1 2 Expertise1 ,942 Expertise2 ,909 Expertise3 ,937 3 4 Creativity1_0 ,903 Creativity2_0 ,885 Enjoyment1_0 ,817 Enjoyment2_0 ,815 Enjoyment3_0 ,699 Control1_0 ,828 Control2_0 ,857 Extraction Method: Principal Component Analysis. Rotation Method: Equamax with Kaiser Normalization. a. Rotation converged in 7 iterations. 62 91,059 2,082 20,821 91,059 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix C.2: Expertise, Creativity_1, Enjoyment_1 and Control_1 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-Square Bartlett's Test of Sphericity df Sig. 63 ,745 717,079 45 ,000 Online Mass Customization of Cars M.J. Overbeek - 402629 Total Variance Explained Componen t Initial Eigenvalues Total Extraction Sums of Squared Loadings % of Cumulative Variance % Total % of Cumulative Variance % Rotation Sums of Squared Loadings Total % of Cumulative Variance % 1 4,061 40,605 40,605 4,061 40,605 40,605 2,616 26,160 26,160 2 2,546 25,463 66,068 2,546 25,463 66,068 2,268 22,677 48,837 3 1,272 12,724 78,793 1,272 12,724 78,793 1,965 19,646 68,483 4 ,801 8,006 86,799 ,801 8,006 86,799 1,832 18,316 86,799 5 ,396 3,964 90,763 6 ,280 2,800 93,563 7 ,237 2,369 95,932 8 ,170 1,696 97,628 9 ,129 1,289 98,917 10 ,108 1,083 100,000 Extraction Method: Principal Component Analysis. Rotated Component Matrixa Component 1 2 Expertise1 ,929 Expertise2 ,912 Expertise3 ,932 3 4 Creativity1_1 ,880 Creativity2_1 ,919 Enjoyment1_1 ,918 Enjoyment2_1 ,889 Enjoyment3_1 ,643 Control1_1 ,857 Control2_1 ,899 Extraction Method: Principal Component Analysis. Rotation Method: Equamax with Kaiser Normalization. a. Rotation converged in 6 iterations. 64 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix D: Reliability Analysis Expertise (1,2,3) Reliability Statistics Cronbach's Alpha Cronbach's Alpha N of Items Based on Standardized Items ,926 ,926 3 Creativity_0 (1,2) Reliability Statistics Cronbach's Alpha Cronbach's Alpha N of Items Based on Standardized Items ,939 ,939 2 Enjoyment_0 (1,2,3) Reliability Statistics Cronbach's Alpha Cronbach's Alpha N of Items Based on Standardized Items ,958 ,958 3 Control_0 (1,2) Reliability Statistics Cronbach's Alpha Cronbach's Alpha N of Items Based on Standardized Items ,890 65 ,890 2 Online Mass Customization of Cars M.J. Overbeek - 402629 Creativity_1 (1,2) Reliability Statistics Cronbach's Alpha Cronbach's Alpha N of Items Based on Standardized Items ,844 ,844 2 Enjoyment_1 (1,2,3) Reliability Statistics Cronbach's Alpha Cronbach's Alpha N of Items Based on Standardized Items ,895 ,898 3 Control_1 (1,2) Reliability Statistics Cronbach's Alpha Cronbach's Alpha N of Items Based on Standardized Items ,840 66 ,843 2 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E: Hypothesis testing Appendix E.1: Regression analysis for ‘intention to use’ Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,693a 1 ,480 ,472 17,822 a. Predictors: (Constant), Control, Creativity, Enjoyment ANOVAa Model 1 Sum of Squares df Mean Square F Regression 59215,912 3 19738,637 Residual 64157,836 202 317,613 123373,748 205 Total Sig. 62,147 ,000b a. Dependent Variable: Intentiontouse b. Predictors: (Constant), Control, Creativity, Enjoyment Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B Std. Error (Constant) 9,678 4,163 Creativity 1,612 1,074 Enjoyment 8,859 Control 1,758 Beta 2,325 ,021 ,099 1,501 ,135 1,553 ,529 5,704 ,000 1,241 ,117 1,416 ,158 1 a. Dependent Variable: Intentiontouse 67 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.2: Regression analysis for ‘perceived creativity’ Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,360a 1 ,130 ,126 1,41396 a. Predictors: (Constant), Scenario ANOVAa Model Sum of Squares Regression 1 df Mean Square F 60,893 1 60,893 Residual 407,854 204 1,999 Total 468,748 205 Sig. 30,457 ,000b a. Dependent Variable: Creativity b. Predictors: (Constant), Scenario Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B Std. Error Beta (Constant) 3,549 ,139 Scenario 1,087 ,197 25,470 ,000 5,519 ,000 1 a. Dependent Variable: Creativity 68 ,360 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.3: Regression analysis for ‘perceived enjoyment’ Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,538a 1 ,289 ,286 1,23881 a. Predictors: (Constant), Scenario ANOVAa Model 1 Sum of Squares df Mean Square F Regression 127,398 1 127,398 Residual 313,068 204 1,535 Total 440,466 205 Sig. 83,015 ,000b a. Dependent Variable: Enjoyment b. Predictors: (Constant), Scenario Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B Std. Error Beta (Constant) 3,592 ,122 Scenario 1,573 ,173 29,429 ,000 9,111 ,000 1 a. Dependent Variable: Enjoyment 69 ,538 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.4: Regression analysis for ‘perceived control’ Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,452a 1 ,204 ,200 1,45435 a. Predictors: (Constant), Scenario ANOVAa Model 1 Sum of Squares df Mean Square F Regression 110,684 1 110,684 Residual 431,485 204 2,115 Total 542,170 205 Sig. 52,330 ,000b a. Dependent Variable: Control b. Predictors: (Constant), Scenario Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B Std. Error Beta (Constant) 3,549 ,143 Scenario 1,466 ,203 24,763 ,000 7,234 ,000 1 a. Dependent Variable: Control 70 ,452 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.5: Regression analysis for moderating effect of product expertise on perceived creativity Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,404a 1 ,164 ,151 1,39324 a. Predictors: (Constant), Scen_Exp, Expertise, Scenario ANOVAa Model Sum of Squares Regression 1 df Mean Square F 76,641 3 25,547 Residual 392,107 202 1,941 Total 468,748 205 Sig. 13,161 ,000b a. Dependent Variable: Creativity b. Predictors: (Constant), Scen_Exp, Expertise, Scenario Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B (Constant) Std. Error Beta 3,203 ,320 10,014 ,000 Scenario ,686 ,452 ,227 1,516 ,131 Expertise ,032 ,027 ,109 1,195 ,234 Scen_Exp ,038 ,038 ,160 ,983 ,327 1 a. Dependent Variable: Creativity 71 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.6: Regression analysis for moderating effect of product expertise on perceived enjoyment Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,550a 1 ,302 ,292 1,23345 a. Predictors: (Constant), Scen_Exp, Expertise, Scenario ANOVAa Model 1 Sum of Squares df Mean Square F Regression 133,145 3 44,382 Residual 307,321 202 1,521 Total 440,466 205 Sig. 29,172 ,000b a. Dependent Variable: Enjoyment b. Predictors: (Constant), Scen_Exp, Expertise, Scenario Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B (Constant) Std. Error Beta 3,989 ,283 14,087 ,000 Scenario ,877 ,401 ,300 2,189 ,030 Expertise -,037 ,024 -,129 -1,552 ,122 Scen_Exp ,065 ,034 ,287 1,925 ,056 1 a. Dependent Variable: Enjoyment 72 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.7: Regression analysis for moderating effect of product expertise on perceived control Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,459a 1 ,211 ,199 1,45539 a. Predictors: (Constant), Scen_Exp, Expertise, Scenario ANOVAa Model 1 Sum of Squares df Mean Square F Regression 114,300 3 38,100 Residual 427,870 202 2,118 Total 542,170 205 Sig. 17,987 ,000b a. Dependent Variable: Control b. Predictors: (Constant), Scen_Exp, Expertise, Scenario Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B (Constant) Std. Error Beta 3,913 ,334 11,711 ,000 Scenario ,951 ,473 ,293 2,013 ,045 Expertise -,034 ,028 -,107 -1,208 ,228 Scen_Exp ,048 ,040 ,191 1,206 ,229 1 a. Dependent Variable: Control 73 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.8: Mediation analysis Run MATRIX procedure: ***************************************************************** Preacher and Hayes (2008) SPSS Macro for Multiple Mediation Written by Andrew F. Hayes, The Ohio State University www.afhayes.com For details, see Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40, 879-891. Also see Chapter 5 of Introduction to Mediation, Moderation, and Conditional Analysis. New York: The Guilford Press. http://www.guilford.com/p/hayes3 ***************************************************************** Dependent, Independent, and Proposed Mediator Variables: DV = Intentio IV = Scenario MEDS = Creativi Enjoymen Control Sample size 206 IV to Mediators (a paths) Coeff se Creativi 1,0874 ,1970 Enjoymen 1,5728 ,1726 Control 1,4660 ,2027 t 5,5188 9,1112 7,2339 p ,0000 ,0000 ,0000 Direct Effects of Mediators on DV (b paths) Coeff se t p Creativi 1,5523 1,0620 1,4617 ,1454 Enjoymen 7,7616 1,6031 4,8416 ,0000 Control 1,5970 1,2290 1,2994 ,1953 Total Effect of IV on DV (c path) Coeff se t Scenario 23,1845 3,0180 7,6821 p ,0000 Direct Effect of IV on DV (c' path) Coeff se t Scenario 6,9479 2,9174 2,3816 p ,0182 Model Summary for DV Model R-sq Adj R-sq F ,4942 ,4842 49,1061 df1 4,0000 df2 201,0000 p ,0000 ***************************************************************** BOOTSTRAP RESULTS FOR INDIRECT EFFECTS Indirect Effects of IV on DV through Proposed Mediators (ab paths) Data Boot Bias SE TOTAL 16,2366 16,1503 -,0863 2,4425 Creativi 1,6879 1,7003 ,0124 1,2616 Enjoymen 12,2075 11,9538 -,2537 2,8490 74 Online Mass Customization of Cars Control 2,3412 2,4962 M.J. Overbeek - 402629 ,1550 2,2751 Bias Corrected Confidence Intervals Lower Upper TOTAL 11,7824 21,4287 Creativi -,3587 4,6323 Enjoymen 6,9836 18,4591 Control -1,9219 7,1832 ***************************************************************** Level of Confidence for Confidence Intervals: 95 Number of Bootstrap Resamples: 1000 ********************************* NOTES ********************************** ------ END MATRIX ----- 75 Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.9: Regression analysis for the intention to use with control variables implemented Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,729a 1 ,532 ,503 17,300 a. Predictors: (Constant), Control, Carowner, Exp_online, Drivinglicence, Gender, Age, Scenario, Exp_traditional, Expertise, Creativity, Amountchoices, Enjoyment ANOVAa Model 1 Sum of Squares df Mean Square Regression 65610,054 12 5467,505 Residual 57763,693 193 299,294 123373,748 205 Total F Sig. ,000b 18,268 a. Dependent Variable: Intentiontouse b. Predictors: (Constant), Control, Carowner, Exp_online, Drivinglicence, Gender, Age, Scenario, Exp_traditional, Expertise, Creativity, Amountchoices, Enjoyment Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B (Constant) 1 Beta 27,545 6,784 4,061 ,000 Scenario 7,015 2,875 ,143 2,440 ,016 Gender -6,886 2,858 -,136 -2,409 ,017 Age -,350 ,150 -,123 -2,329 ,021 Exp_traditional 2,943 2,989 ,057 ,985 ,326 Exp_online -,713 2,776 -,014 -,257 ,798 Drivinglicence 3,452 2,941 ,060 1,174 ,242 Carowner ,020 2,677 ,000 ,008 ,994 Amountchoices ,143 ,895 ,011 ,160 ,873 Expertise -,685 ,291 -,141 -2,355 ,020 Creativity 1,537 1,088 ,095 1,413 ,159 Enjoyment 8,100 1,617 ,484 5,008 ,000 Control 1,079 1,401 ,072 ,770 ,442 a. Dependent Variable: Intentiontouse 76 Std. Error Online Mass Customization of Cars M.J. Overbeek - 402629 Appendix E.10: Regression analysis of Appendix E.9 complemented with ‘Gender x Scenario’ and ‘Age x Scenario’ Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate ,731a 1 ,535 ,500 17,338 a. Predictors: (Constant), Age_Scenario, Gender, Exp_online, Drivinglicence, Carowner, Amountchoices, Age, Creativity, Exp_traditional, Expertise, Control, Gender_Scenario, Enjoyment, Scenario ANOVAa Model 1 Sum of Squares df Mean Square Regression 65955,893 14 4711,135 Residual 57417,855 191 300,617 123373,748 205 Total F 15,672 Sig. ,000b a. Dependent Variable: Intentiontouse b. Predictors: (Constant), Age_Scenario, Gender, Exp_online, Drivinglicence, Carowner, Amountchoices, Age, Creativity, Exp_traditional, Expertise, Control, Gender_Scenario, Enjoyment, Scenario 77 Online Mass Customization of Cars M.J. Overbeek - 402629 Coefficientsa Model Unstandardized Coefficients Standardized t Sig. Coefficients B (Constant) 1 Beta 31,135 7,766 4,009 ,000 Scenario -,573 8,077 -,012 -,071 ,944 Gender -6,531 3,776 -,129 -1,729 ,085 Age -,503 ,208 -,176 -2,416 ,017 Exp_traditional 2,873 2,996 ,056 ,959 ,339 Exp_online -,698 2,782 -,014 -,251 ,802 Drivinglicence 3,436 2,947 ,059 1,166 ,245 Carowner ,103 2,684 ,002 ,038 ,969 Amountchoices ,026 ,905 ,002 ,028 ,977 Expertise -,693 ,292 -,143 -2,377 ,018 Creativity 1,630 1,094 ,100 1,490 ,138 Enjoyment 8,119 1,621 ,485 5,009 ,000 Control 1,162 1,412 ,077 ,823 ,411 Gender_Scenario -,749 5,020 -,012 -,149 ,882 ,304 ,285 ,176 1,065 ,288 Age_Scenario a. Dependent Variable: Intentiontouse 78 Std. Error