Table of Contents Chapter Title Page Table of Contents ……………………………………………………………………………………. i List of Figures & Tables …………………………………………………………………………… iii Abstract …………………………………………………………………………………………………. iv Chapter 1: Introduction …………………………………………………………………………… 1 1.1 Motivation and Problem Definition ………………………………………………………………………….. 1 1.2 Methodology …………………………………………………………………………………………………………….. 2 1.3 Research Objectives ………………………………………………………………………………………………… 3 1.4 Dissertation Proposal Structure ………………………………………………………………………………. 3 Chapter 2: Literature Review ……………………………………………………………………. 4 2.1 Expectation Disconfirmation Theory (EDT): An Overview ……………………………………… 4 2.2 Disentangling Utilitarian and Hedonic Aspects of Online Consumption Behavior …. 5 2.3 Intellectual Buy-In: Fulfilling Utilitarian Expectations via Functional Performance 7 2.3.1 Defining Utilitarian Expectations …………………………………………………………………… 9 2.3.2 A Typology of Functional Performance …………………………………………………………. 12 2.4 Emotional Buy-In: Fulfilling Hedonic Expectations via Aesthetic Performance …….. 15 2.4.1 Defining Hedonic Expectations ……………………………………………………………………… 17 2.4.2 A Typology of Aesthetic Performance …………………………………………………………… 21 Chapter 3: Model and Hypotheses …………………………………………………………….. 24 Chapter 4: Methodology …………………………………………………………………………… 30 4.1 Study 1: An Electronic Survey of Online Consumption Behavior ………………………….. 30 4.1.1 Development of Survey Instrument ……………………………………………………………… 31 4.1.2 Pretest ……………………………………………………………………………………………………………. 32 4.1.3 Sample and Data Collection Procedures ………………………………………………………. 32 4.1.4 Data Analysis Procedures ……………………………………………………………………………… 34 4.2 Study 2: An Experimental Study of Expectations vs. Performance ………………………. 38 4.2.1 Development of Survey Instrument ……………………………………………………………… 39 4.2.2 Experimental Design and Treatments ………………………………………………………….. 40 4.2.3 Manipulation Checks ……………………………………………………………………………………… 43 4.2.4 Pretest ……………………………………………………………………………………………………………. 44 4.3.5 Sample and Data Collection Procedures ………………………………………………………. 45 4.3.6 Data Analysis Procedures ……………………………………………………………………………… 49 Chapter 5: Discussion of Pretest Results ……………………………………………………. 55 5.1 Theoretical Contributions …………………………………………………………………………………………. 55 5.2 Pragmatic Implications ……………………………………………………………………………………………. 57 5.3 Limitations ………………………………………………………………………………………………………………… 59 5.4 Dissertation Schedule ………………………………………………………………………………………………. 60 Chapter 6: Conclusion ……………………………………………………………………………… 61 References ……………………………………………………………………………………………... 63 UNTANGLING UTILITARIAN AND HEDONIC CONSUMPTION BEHAVIORS IN ONLINE SHOPPING ABSTRACT There is growing recognition that consumption activities embed both utilitarian and hedonic components (Babin et al. 1994). Utilitarian consumption appeals to the cognitive rationality of consumers by accentuating the achievement of desirable outcomes from shopping activities (Babin et al. 1994) whereas hedonic consumption is gauged on the entertainment value of the shopping trip and relates more to the emotive, fantasy and multi-sensory aspects of the transactional experience (Hirschman and Holbrook 1982). By focusing exclusively on utilitarian consumption or product acquisition, past research has been chastised by critics for not adequately reflecting the totality of a shopping experience as it fails to weigh in the emotional costs and benefits associated with the consumption activity (Holbrook 1986). The same sentiments can be expressed for online shopping (Childers et al. 2001). The interactive nature of the Internet offer numerous opportunities to enrich online shopping experiences by improving the accessibility of product information, enabling direct multi-attribute comparisons, reducing buyer search costs and augmenting the product acquisition process. While considerable research has been conducted on these utilitarian facets of online shopping, the emergence of the Internet as a hedonic communication medium has gained in momentum recently. When transacting online, the social proximity and face-to-face interaction between shoppers and salespersons are replaced by IT-enabled web interfaces, which act to create distant customervendor relationships. Such estranged transactional environments however, inhibit the development and growth of online shopping. Research has consistently demonstrated that consumers treat the technological artifacts embedded within websites as social actors and ascribe humanlike characteristics to them. Insofar as e-commerce websites are deemed as social entities by consumers when transacting electronically, online shopping must not only fulfill its intended utilitarian function, it should also deliver a hedonically charged transactional experience as advocated by a number of scholars. Drawing on the Expectation Disconfirmation Theory (EDT) (Oliver 1977, 1980, Spreng et al. 1996), this study advances a model of the determinants of consumer satisfaction within the ecommerce context, which delineates between cognitive and affective features of online shopping. The model proposes that feelings of satisfaction arise from consumers’ subjective assessment of whether the functional and aesthetic performance of an e-commerce website caters sufficiently to the fulfillment of utilitarian and hedonic expectations respectively. 1. INTRODUCTION This chapter will offer a brief overview of the motivation for my dissertation, the methodology to be utilized for empirical investigation, the research objectives to be attained and the structural flow of the dissertation proposal. 1.1 Motivation and Problem Definition This section will briefly discuss the theoretical rationale for advocating the delineation between utilitarian and hedonic consumption behaviors for online shopping and how the Expectation Disconfirmation Theory (EDT) can be applied to investigate such a phenomenon. 1.2 Methodology This section will give a brief elaboration on the methodological procedures for the two empirical studies proposed for this dissertation. It will also explain the reason behind the choice of a survey and an experimental study for answering my research questions. 1.3 Research Objectives This section will outline the research objectives to be achieved through the empiricism proposed for this dissertation and highlight how the attainment of these objectives contributes to extant literature. 1.4 Dissertation Proposal Structure This section will chart out the structure of the dissertation proposal by providing a short description of what each chapter will entail. 2. LITERATURE REVIEW This chapter will review contemporary research conducted in the marketing and MIS academia that examines the distinction between utilitarian and hedonic aspects of consumption behavior for online shopping and their implications for designing e-commerce websites. 2.1 Expectation Disconfirmation Theory (EDT): An Overview This section will give an in-depth elaboration of the premise, constructs and relationships embodied within the Expectation Disconfirmation Theory (EDT) to justify its relevance as a overarching framework for comprehending online consumption behaviors. 2.2 Disentangling Utilitarian and Hedonic Aspects of Online Consumption Behavior This section will conduct a review of extant marketing and MIS literature to derive theoretical justification for distinguishing between utilitarian versus hedonic facets of consumption behavior for online shopping. 2.3 Intellectual Buy-In: Fulfilling Utilitarian Expectations via Functional Performance This section will endeavor to arrive at a series of salient utilitarian expectations that must be fulfilled via the functional performance of e-commerce websites as well as a typology of webenabled technological features contributing to such performance. 2.3.1 Defining Utilitarian Expectations This sub-section will describe my reasoning for subscribing to Moore and Benbasat’s (1991, 1996) refinement of Roger’s (1995) Innovation Diffusion Theory (IDT) as the conceptual framework from which to articulate cognitive anticipations for e-commerce websites. 2.3.2 A Typology of Functional Performance This sub-section will describe my reasoning for espousing Lovelock’s (1991) augmented or supplementary service as the conceptual framework from which to explicate the spectrum of transactional functionalities that play crucial roles in affecting consumers’ assessment of functional performance for e-commerce websites. 2.4 Emotional Buy-In: Fulfilling Hedonic Expectations via Aesthetic Performance This section will endeavor to arrive at a series of salient hedonic expectations that must be fulfilled via the aesthetic performance of e-commerce websites as well as a typology of webenabled technological features contributing to such performance. 2.4.1 Defining Hedonic Expectations This sub-section will describe my reasoning for performing an inductive classification of hedonic expectations cited within previous research to arrive at the three generic concepts of enjoyability, excitability and flow that are desired by consumers when transacting via e-commerce websites. 2.4.2 A Typology of Functional Performance This sub-section will describe my reasoning for performing an inductive classification of technical properties of e-commerce websites cited within previous research as being predictive of aesthetic performance. 3. MODEL AND HYPOTHESES This chapter will construct a research model of online consumption behavior together with testable hypotheses (see Figure 1) that delineates between utilitarian and hedonic expectations of consumers for virtual transactions and explains how these expectations may be fulfilled through the functional and aesthetic performance of e-commerce websites respectively. [+] Functional Performance [-] Utilitarian Disconfirmation [+] Utilitarian Expectations [-] Utilitarian Satisfaction [+] [+] Overall Satisfaction Hedonic Expectations [+] Hedonic Disconfirmation [+] Aesthetic Performance [+] [-] Hedonic Satisfaction [-] [+] Figure 1: Proposed Research Model 4. METHODOLODY This chapter will describe two studies proposed for investigating the phenomenon of interest. The first study will take the form of an online survey that tests the entire model on an actual sample of e-commerce website consumers with prior transactional experience whereas the second study will be an experiment to pinpoint the exact transactional functionality or aesthetic property for a given utilitarian or hedonic expectation. 5. DISCUSSION OF PRETEST RESULTS This chapter will underscore the insights to be gleaned from the pretest results of the first study in terms of informing the design of e-commerce websites. In addition, the chapter will also depict the theoretical contributions, pragmatic implications and limitations of this dissertation. 5.1 Theoretical Contributions This section will discuss the insights from the pretest results of the first study and their bearings for advancing knowledge on consumers’ motivations for performing online transacting and how e-commerce websites can be designed to match these motivations. 5.2 Pragmatic Implications This section will detail how the design specifications for transactional functionalities and aesthetic properties embedded within my research model can translate to practice for developers in order to fulfill consumers’ utilitarian and hedonic expectations for e-commerce websites. 5.3 Limitations This section will explicate possible limitations of this research as demonstrated through the pretest and how my suggestions for addressing these problems in the actual study. 5.4 Dissertation Schedule This section will tabulate the chronological sequence with which I plan to complete the various research activities for my dissertation. 6. 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