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The Effect of Location-based O2OService Characteristics on ExtendedTechnology Acceptance Model and

Behavioral Intention

Tae-Young Cho1, Tai-Gi An2 and Zhang Hao∗3

1Dept. of Airline Service Science,Joongbu University, Korea

[email protected]. of hotel management,Gwangju University, Korea

[email protected]∗3Dept. Key Laboratory of Land Surface Pattern

and Simulation, Institute of Geographical Sciencesand Natural Resources Research,

CAS, Beijing 100101, [email protected]

Abstract

The purpose of this study is to investigate the effectof location-based O2O service characteristics on the accep-tance of extended technology acceptance model for one-person households, and then to analyze causal relationshipsso as to predict consumer behaviors. We had conductedonline surveys using Google Drive for single household whohave used Starbucks Siren’s order service at least once. Byusing BM SPSS Statistics 22.0 and IBM AMOS 22.0 sta-tistical program, the frequency analysis, exploratory factoranalysis, reliability analysis, correlation analysis, confirma-tory factor analysis, and structural equation model analy-

International Journal of Pure and Applied MathematicsVolume 120 No. 6 2018, 4921-4935ISSN: 1314-3395 (on-line version)url: http://www.acadpubl.eu/hub/Special Issue http://www.acadpubl.eu/hub/

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sis were performed. The fit of the structural model con-firmed through analysis was X2=218.676(p=0.000), df=84,Q=2.603, GFI=0.940, AGFI=0.914, RMR=0.018, NFI=0.9-63, TLI=0.971, CFI=0.977, RMSEA=0.058, indicating thatthere is no problem in the measurement model. First, loca-tion - based O2O service characteristics showed a positive(+) effect on perceived ease of use. Second, location - basedO2O service characteristics have a positive (+) effect on per-ceived usefulness. Third, perceived ease has a positive (+)effect on perceived usefulness. Fourth, perceived ease hasa positive (+) effect on behavioral intention (search inten-tion, purchase intention). Fifth, perceived usefulness has apositive (+) effect on behavioral intention (search intention,purchase intention).

Key Words : Location-based, O2O Service, Technol-ogy Acceptance Model, Behavioral Intention, Single House-hold.

1 Introduction

Modern people who live in the era of digital revolution are livingin an age when they can easily use Internet regardless of time andplace. In particular, the penetration rate of smartphones in Koreais 85% (2.5% p↑ compared to 2015) of the population aged 6 yearsor older according to the actual use of internet in 2016 in the future.Additionally, cause the development of ICT technology, Various in-formation can be provided in real time through the smartphone forconsumer’s location, base on the Short-range Wireless Communi-cation (NFC), beacon, low power Bluetooth (BLE), and geographicinformation system (GPS). it is also used as a marketing strategyin various fields such as hotels, restaurants, rental cars, travel agen-cies, logistics companies, and fashion distribution [1]. In addition tothe activation of location-based services, O2O service is emerging asa way to innovate offline supply and demand by using online tech-nologies and to feel shopping space, atmosphere, and products inonline space. However, the research on O2O services is still lacking.And in other side, the increasing of single household is becominga common type of household which is one social phenomena in the

International Journal of Pure and Applied Mathematics Special Issue

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world, as well as consumption markets for single household are ex-panding. Due to the researches about technology adoption modelapplication in relation to the change and application of technol-ogy for single household were lacking, it is necessary to speed up.Therefore, the purpose of this study is to provide basic data forestablishing policy for single household, by identifying the relation-ship between location-based O2O service characteristics, perceivedEasiness, perceived usefulness, and behavioral intention.

2 Literature Review

2.1 O2O Service

The O2O service has a broad concept and a negotiation concept.Currently, it is dominant to view the O2O service as a broad con-cept. The O2O service, which is a consultative concept, means tosupport offline commerce by attracting customers online, and theO2O service of the broad concept connects both online and offline,or connects offline from online to O2O service You can do it [2].The definition of O2O service characteristics are defined by dif-ferent terminology for each scholar, and its usefulness was verified.Sun [3] defined it as O2O service characteristics, and the sub-factorsare composed of six sub-factors such as usage simplicity, interac-tivity, economy, entertainment, safety, and experience. And Jeonghas defined O2O service characteristics as perceived benefits, thesub - factors consisted of five sub-factors such as location accuracy,contextual offer, instant connectivity, economic efficiency, and weblooming. In this study, it was constructed as the study of Jeong[4].

2.2 Extended Technology Acceptance Model

Along with the development of information and technology, variousstudies related to new information and technology acceptance arecontinuing. The representative theory is the technology acceptancemodel proposed by Davis [5]. In order to explain and justify the de-terminants of information technology acceptance by complementingthe limitations of rational action theory (TPA) and planned actiontheory (TPB), he classified the determinants of attitude of rational


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action theory into perceived usefulness and perceived ease Accep-tance model (TAM). The technology acceptance model initiatedby Davis [6] is a principle about acceptance of new informationtechnology services, that is, the model can predict behaviors andbehaviors intention on the basis of perceived usefulness, perceivedease of use and attitude. Most initial researches that applied thisprinciple are predicting the use of computers and software. Sincethen, in order to improve the explanatory power of the technologyacceptance model, it is necessary to apply various variables. In thestudy of external variables such as subjective norm, spontaneity,image, job suitability, output quality, and outcome demonstrationwere extended to verify the relationship with existing technologyacceptance model [7]. Research has been carried out to investigatepreceding factors that affecting perceived ease and perceived useful-ness by many researchers [8]. Therefore, in this study, we conductedresearch by constructing O2O service characteristics as precedingvariables affecting perceived ease and perceived usefulness.

2.3 Behavioral Intention

Behavioral intentions are being studied in various ways dependingon the subject and purpose of the research. The results of this studyare as follows. First, it is important to consider the relationshipbetween behavioral intention and intention to purchase behavior.The purchase intention and the word of mouth and the return of theinquiry [9]. Dawn & Thomas [10] classified the behavior intentioninto two categories: Repurchase Intention of economical behaviorIntention, Oral Transmitting Intention of social behavior intention.Koh [11] constructed it as purchase intention and search intention.Therefore, in this study, the behavior intention was constructed bysearch intention for purchase intention and repurchase.

3 Methodology

3.1 Research Hypotheses

The research model is the same as figure 1 and the hypothesis is asfollows.


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H1: Location-based O2O service characteristics will have a pos-itive (+) effect on perceived ease of use.

H2: Location - based O2O service characteristics will have apositive (+) effect on perceived usefulness.

H3: Perceived ease of use will have a positive (+) effect onperceived usefulness.

H4: Perceived ease will have a positive (+) effect on behavioralintention (search intention, purchase intention).

H5: Perceived usefulness will have a positive (+) effect on be-havioral intention (search intention, purchase intention).

3.2 Research Model

All the 5 hypotheses are showed in Figure 1.

Figure 1: Research Model

3.3 Statistical Analysis

1 person who has used Starbucks siren order service at least once,and 1 person who is 20 years old or older who lives in Korea forabout 15 days from July 16 to July 30, 2017 Four hundred eighty-five out of the 500 men and women were used in the validationanalysis of the study model. Data were analyzed using frequencyanalysis, exploratory factor analysis, reliability analysis, correlationanalysis, confirmatory factor analysis, second-order confirmatory


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factor analysis, and structural equation model analysis using IBMSPSS Statistics 22.0 and IBM AMOS 22.0 statistical programs.

4 Results

4.1 Demographic Characteristics

For the demographics of this study, there were more female respon-dents with 243 (50.6%) respondents than male respondents with 237(49.4%). For the age group, the 20s accounted for the largest per-centage of 270 (56.3%), followed by those in their 30s, 40s and 50s.401respondents (83.5%) were unmarried with the largest percent-age of the marital status, followed by the married and the other.And the education levels currently enrolled in university or uni-versity graduated accounted for the largest percentage with 343(71.5%) respondents, followed by College studying or college grad-uated, postgraduate, senior high school graduated and the other.In terms of monthly average income, 146 (30.4%) respondents ac-counted for the largest percentage with monthly income of less than1 million won, followed by 201∼300 million won, 101 to 200 millionwon, 301 to 400 million won, 401-500 million won. For occupation,the students accounted for the largest proportion of 176 (36.7%)respondents, followed by white collar workers, professional workers,service workers, self-employed, others, civil servants, educationalpersonnel, blue collar job, technical worker. In frequency of usingthis app, the others took the largest proportion of 132 (27.5%) re-spondents, followed by more than once in a month, more than oncein one day, more than once in two weeks, more than once in threeweeks.

4.2 Reliability and Validity Testing

The result of factor analysis on location-based O2O service charac-teristics as fllowed, the KMO value was 0.943, which was suitable forfactor analysis factor analysis and Barlett’s sphere sphericity testwas 5334.367 (p<0.000). The total variance explanatory power offactors was 78.075% and the results were shown in Table 1. Mean-while, the Cronbach’s α value for each derived factor was instantly


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linked 0.882, economics 0.886, location accuracy 0.868, context-based provisioning 0.860, and web looming 0.794.

In order to measure perceived ease of use, four measured items


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were derived as one single factor, as shown in Table 2. The KMOvalue as a measured value of the validity of factor analysis was 0.855and the Bartlett’s sphere sphericity test was 1359.840 (p <0.000).The total variance explanatory power of four variables was 80.182%and the Cronbach’s α value was 0.917.

Factor analysis results of perceived ease of use were as shown inTable 3, four variables, which were measured items, were derived asa single factor. The KMO value as a measured value of the validityof factor analysis was 0.841 and the Bartlett’s sphere sphericity testwas 1072.194 (p <0.000). The total variance explanatory power ofthe four variables was 75.228% and the Cronbach’s α value was0.887.

The factor analysis result of the behavioral intention was as fol-low: the KMO value was 0.914, which was suitable for factor anal-ysis and Barlett’s sphere sphericity test was 2508.105 (p <0.000).


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The total variance explanatory power of these factors was 84.724%.The results are shown in Table 4. In addition, Cronbach’s α valuewas found to be 0.909 for purchase intention and 0.903 for searchintention.

4.3 Confirmatory Factor Analysis

In this study, the validity was verified through confirmatory factoranalysis. The results of confirmatory factor analysis for each con-figuration concept were showed in Table 5. In this study, internalconsistency of each research unit was examined and confirmatoryfactor analysis was performed for each latent factor. In order to testthe fit of the items for the optimal state, we used X2, df, Q, GFI,AGFI, RMR, NFI, TLI, CFI and RESEA and confirmed the pathcoefficient, standard error and C.R. using the maximum likelihoodmethod. The fit of each factor is considered to be reasonable byanalyzing the structural model.


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4.4 Correlation Analysis

Before hypothesis testing, person correlation analysis was performed.The result was as shown in Table 6, there was a significant correla-tion between O2O service, perceived ease of use, perceived useful-ness, and behavioral intention, p <.01.

4.5 Evaluation of the Research Model and Hy-pothesis Testing

Based on the results of the confirmatory factor analysis, AMOS22.0 was used to analyze the structural model as shown in Fig 2.The fit of the analysis was X2=218.676(p=0.000), df=84, Q=2.603,GFI=0.940, AGFI=0.914, RMR=0.018, NFI=0.963, TLI=0.971,CFI=0.977, RMSEA=0.058, indicating that the overall fit is rea-sonable.

SMC is equivalent to R2, which is the decision coefficient inregression analysis. The perceived ease of use was explained byO2O service was 71.8%. Perceived usefulness was explained by


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O2O service and perceived ease of use was 77.6%, And behavioralintentions are explained by O2O service, perceived ease of use andperceived usefulness was 64.9%.

Figure 2: Results of Testing the Research Model

H1. The O2O service has a positive effect on perceived ease ofuse with path coefficient of 0.847 and t value of 18.814 (p <0.01).

H2. The O2O service has a positive effect on perceived use-fulness with a path coefficient of 0.482 and a t value of 6.685 (p<0.01).

H3. The perceived ease of use has a positive effect on perceivedusefulness by a path coefficient of 0.435 and a t value of 6.126 (p<0.01).

H4. The perceived ease of use has a positive effect on the be-havioral intention, with a path coefficient of 0.313 and a t-value of4.121 (p <0.01).


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H5. The perceived usefulness has a positive effect on behavioralintention, with a path coefficient of 0.524 and the t value of 6.655(p <0.01).

5 Conclusion

The purpose of this study is to provide basic data for establishingpolicy for single household by identifying the relationship betweenlocation-based O2O service characteristics, perceived ease of use,perceived usefulness, and behavioral intentions for a single house-hold. The results are the results of the study are summarized asfollows as follows

Research indicates: First, location-based O2O service character-istics showed a positive (+) effect on perceived ease of use. Second,location - based O2O service characteristics have a positive (+) ef-fect on perceived usefulness. Third, perceived ease has a positive(+) effect on perceived usefulness. Fourth, perceived ease has a pos-itive (+) effect on behavioral intention (search intention, purchaseintention). Fifth, perceived usefulness has a positive (+) effect onbehavioral intention (search intention, purchase intention).

The implications of research result the same as follow:First, the location-based O2O services are online and offline fu-

sion services, with the development of location-based O2O services,online and offline areas are gradually falling down.

Second, the O2O service characteristics have a positive effecton perceived ease and perceived usefulness. In a company, singlehousehold is using new technologies such as location-based O2Oservices. Therefor it is necessary to develop an O2O service thatcan provide useful information and guide the usage method moreconveniently.

Third, due to perceived ease of use has a significant effect onperceived usefulness, for single household who used location-basedO2O services as well as all the consumers who used real services, itis necessary to make continuous efforts to eliminate difficulties andinconveniences of information acquirement.

Forth, perceived ease of use and perceived usefulness have asignificant effect on the behavioral intention, it is suggested thata public relations and guidance system should be constructed so


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that the single household have nothing inconvenience when theyuse location based O2O service.

Despite the above implications, the results of questionnaire sur-vey show that the proportion of 20s and 30s is high and the pro-portion of 40s ∼ 50s is low. It is necessary to investigate at thesame rate in future studies.

References

[1] Butcher, D.(2010). Sonic, American Eagle, REI tap LBS todrive foot traffic in-store. Mobile Marketer Online. RetrievedFebruary 2, 2012.

[2] Digieco.(2014). Mobile new trend(O2O case & prospect),Digieco Report.

[3] Sun, Z. J.(2015). A Study on the Effects of O2O Character-istics on Attractiveness, Trust and Users‘ Intention: Focusedon Food Service Industry between Korea and China. Graduateschool of Gongju National University, a doctoral dissertation.

[4] Jeong, y. J.(2016). A Study on the Factors that affect the UserIntention of O2O Services. Graduate school of Yonsei Univer-sity, a doctoral dissertation.

[5] Davis, F. D.(1989). Perceived Usefulness, Perceived Ease ofUse, and User Acceptance of Information Technology. MISQuarterly, 13(3), 319-340

[6] Davis, F. D., Bagozzi, R. P., & Warshaw, P. R.(1989). Useracceptance of computer technology: A comparison of two the-oretical model. Management Science, 35(8), 982-1003.

[7] Legris, P., Ingham, J., & Collerette, P.(2003). Why do peo-ple use information technology? A critical review of the Tech-nology Acceptance Model. Information and Management, 40,191-204.

[8] Venkatesh, V. A. & Davis, F.(2000). A theoretical extension ofthe technology acceptance model: Four longitudinal field stud-ies, Management sciences, 46(2), 188.


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[9] Zeithaml, V. A., Berry, L. L. & Parasurman, A.(1996). The be-havioral consequences of service quality. Journal of marketing,60(2), 31-46.

[10] Dawn, L. & Thomas, P.(2004). The impact of structure andprocess attributes on satisfaction and behavioral intentions.Journal of Service Marketing, 18(2), 114-121.

[11] Koh, G. D.(2014). Mobile Tourism Information Search & Pur-chase Intent : Integrated Model based on TPB and TAM, Grad-uate school of Tourism & Hospitality, Kyonggi University, adoctoral dissertation.


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