Factors affecting current users’ attitude towards e-auctions in China: An extended TAM study

Journal of Retailing and Consumer Services 34 (2017) 19–29

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Factors affecting current users’ attitude towards e-auctions in China: An extended TAM study

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Rui Li , Te-Lin (Doreen) Chung, Ann Marie Fiore Department of Apparel, Events, and Hospitality Management, Iowa State University, 31 MacKay, Ames IA 50010, USA

A R T I C L E I N F O

A BS T RAC T

Keywords: E-auctions Attitude Technology acceptance model Chinese consumers

E-auctions have the potential to gain a larger market share of the C2C sector by increasing participation of current users. The purpose of this study was to examine the factors that impact attitude towards e-auctions among current Chinese e-auction users. Variables of the extended technology acceptance model and their antecedents were examined. Data were collected from 210 current users of e-auctions in China. Using structural equation modeling, the results highlighted key antecedents, such as security, social motives, and playfulness, suggesting the importance of creating a safe, interactive, and fun e-auction platform. Connection speed and economic gain as influential factors were also identified.

1. Introduction The Chinese online market is not only the largest but also the fastest growing online market in the world. According to the China Internet Network Information Center (CNNIC, 2014), China had more than 632 million Internet users as of 2014, increasing from 420 million users in 2010. Over half (53%) of Chinese Internet users, 332 million people, were online shoppers (CNNIC, 2014). However, the composition of the Chinese online market differs from that of well-developed online markets (e.g., the U.S. market), where the ratio between the business-to-consumer (B2C) sector and consumer-to-consumer (C2C) sector sales volume is 60–40% (Sohu, 2009). At its height in 2008, the C2C sector possessed more than a 90% share of the online market (IResearch, 2009), and since then, the C2C sector has seen an average annual growth rate of more than 35% in sales (IResearch, 2014). Today, although the relative market share has decreased because of the exponential growth of the B2C operations in China, the 2.4 trillion Chinese Yuan (400 billion USD) C2C sector continues to dominate the Chinese online market with greater than a 60% share (IResearch, 2014). E-auctions are a unique form of C2C transactions. Unlike traditional retail business models in which sellers determine the prices for goods, the e-auction allows buyers to influence the final price of a product by competitively bidding on it (Bernhardt and Spann, 2010). At present, although only a small portion of Chinese C2C buyers participate in e-auctions, it is a substantial number given China's leading C2C platform (Alibaba Group's Taobao) has more than 8 million individual sellers and more than 279 million active buyers

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(Sina, 2014). Hence, Taobao is a platform for kick starting entrepreneurial small businesses and frequently a means for consumers to procure goods at a lower price. Because of its importance to entrepreneurs and consumers in China, more attention should be paid to C2C transactions, including e-auctions, as alternate means for individual sellers to market products and for consumers to acquire products. Understanding the factors affecting Chinese consumers’ adoption of and attitudes towards e-auctions has not been fully addressed in the academic literature. Most of the studies regarding e-auctions have focused on issues that affect bidders’ perceptions and behaviors towards e-auctions (e.g., Hou and Elliott, 2014), such as perceived value, effectiveness, and satisfaction with e-auctions (Du et al., 2012; Lee et al., 2009). Looking at consumer characteristics, Hou and Elliott (2014) compared traits of online bidders and nonbidders and found significant differences in their respective need for uniqueness, tendency to seek variety, and propensity to trust. In other studies, researchers (e.g., Huang and Dai, 2006; Lu et al., 2009; Quaddus et al., 2005) have begun to investigate the factors that influence Chinese consumers’ assessment and selection of different e-auction websites. As a distinct form of purchase transactions, e-auctions have the potential to expand the C2C market and gain a larger share of the C2C sector by increasing the number of users and the participation level of current users. Therefore, further research is needed to fully understand the factors affecting Chinese consumers’ adoption of and postadoption attitudes towards e-auctions. For instance, as Chinese online consumers become more sophisticated, niche market e-auction websites (e.g., vintage, limited, and collectable items) may emerge and attract new and distinct segments of online consumers. Additional investiga-

Corresponding author. E-mail addresses: [email protected] (R. Li), [email protected] (T.-L.D. Chung), amfi[email protected] (A.M. Fiore).

http://dx.doi.org/10.1016/j.jretconser.2016.09.003 Received 13 January 2016; Received in revised form 11 August 2016; Accepted 8 September 2016 0969-6989/ © 2016 Elsevier Ltd. All rights reserved.

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2.2. Enjoyment-extended TAM

tion of the factors affecting attitudes towards e-auctions among current Chinese users will help individual sellers and small business owners successfully enter and survive in the booming C2C market. Therefore, research may help determine the factors leading to acquisition of new users and enhanced participation by current eauction users in China. Given the comparative cost effectiveness of retaining current customers as opposed to acquiring new customers (Brynley-Jones, 2015; Stark and Stewart, 2011), the focus of the present study was on current users of e-auctions. Thus, the purpose was to examine the factors that influence attitudes towards e-auctions among current Chinese users. These factors include characteristics of the e-auction website (security and connection speed) and the factors associated with consumer experiences with e-auction websites (time consumption, economic gain, playfulness, and social motives). In the present study, the extended technology acceptance model (extended TAM; Davis et al., 1992; Pavlou, 2003) was used to determine the factors affecting attitudes towards e-auctions. By adding constructs such as trust and enjoyment, the extended TAM has been found to be an effective tool in understanding technology acceptance in consumption environments such as e-commerce, e-services, and eshopping (e.g., Ha and Stoel, 2009; Lee et al., 2005; Shih, 2004). Hence, the extended TAM was a suitable framework for the present study. Given the unique nature of e-auctions and their websites as well as the current Internet conditions within China, additional factors were included as antecedents, as will be discussed below.

Davis et al. (1992) added perceived enjoyment as an intrinsic motivation factor to the original TAM. Davis et al. (1992) defined perceived enjoyment as “the extent to which the activity of using a technology is recognized as enjoyable in its own right, apart from any utilitarian or practical outcomes” (p.1113). Enjoyment, a reflection of hedonic value, is one of the underlying motivations that affects a consumer's intention to adopt new technology (Childers et al., 2001). Previous studies have indicated that perceived enjoyment positively affects the perceived usefulness of (e.g., Rese et al., 2014; Venkatesh, 1999), attitudes towards, and intention to adopt a new online technology (e.g., Agrebi and Jallais, 2015; Childers et al., 2001; Van der Heijden, 2003). E-auctions may generate enjoyment through the fun and entertaining process of competing with others for a desired item. Specifically, the enjoyment of strategic bidding for an item and the gratification of winning the item may be attractive to e-auction bidders. Thus, enjoyment associated with e-auctions may enhance attitudes and intentions towards this way of shopping. 3. Hypotheses Although the extended TAM serves as a suitable framework, the variables in the model do not fully address the factors affecting attitudes towards e-auctions. In response, specific antecedent factors to extended TAM variables were also examined. In the present study, Internet infrastructure, website features, and other possible factors associated with consumer participation in e-auctions were examined as antecedents to the extended TAM variables in an effort to explain Chinese consumers’ attitudes towards e-auctions. The antecedents examined in the present study were security, connection speed, time consumption, economic gain, playfulness, and social motives.

2. Theoretical framework The TAM (Davis, 1989; Davis et al., 1989) was initially used to understand and predict consumer adoption of new information technologies. Davis (1989) found that perceived usefulness and perceived ease of use contribute to attitude and consequent behavioral intention towards using a new technology. Perceived usefulness entails the expectation that using new technology will bring about positive outcomes, and perceived ease of use reflects the expectation that the new technology will be easy to learn and use (Davis, 1989). Although a number of studies have validated the TAM's robustness in explaining consumers’ adoption of new technology (e.g., Im and Ha, 2013; Lee et al., 2005; Shih, 2004), a consumer's voluntary decision to use a certain technology may not be fully explained by its usefulness and/or ease of use. Other factors such as trust and enjoyment, which are variables that have extended the original TAM, may help explain consumer adoption behavior in various online situations (Childers et al., 2001; Dahlberg et al., 2003).

3.1. Security as an antecedent variable According to previous research, trust is instilled when the website is secure enough for consumers to complete transactions without worries (Chen and Tan, 2004). Shopping online often requires a consumer to provide personal details, such as name, phone number, and address, as well as financial details, such as credit card information. Lack of security is a major concern for many potential online shoppers (e.g., Éthier et al., 2006; Salo and Karjaluoto, 2007). The lack of perceived security of a website deters Internet users from shopping online or causes shoppers to give up their purchase transactions (e.g., Jauhar, 2015; O’Cass and Fenech, 2003). Security features, including certified antivirus and antihacking safeguards, are signals of website quality (Yoon and Occeña, 2015) that may increase consumer confidence in making online transactions (Wu et al., 2010). Moreover, perceived privacy and security affect a consumer's level of trust towards online shopping (e.g., Chen and Barnes, 2007; Pappas, 2016). In support, Elbeltagi and Agag (2016) found that security and privacy are important factors shaping consumer perceptions of online retailing ethics, and these perceptions consequently impact trust and satisfaction towards online retailing. In an online shopping context, including e-auctions, uncertainty exists mainly because online shoppers do not have full control over the exchange process after entering payment information (e.g., paying before receiving and inspecting products) (Yen and Lu, 2008). This increases perceived economic risk for online shoppers (Pavlou, 2003). Moreover, divulging personal information online augments perceived risk due to loss of privacy (Pavlou, 2003). E-auctions require users to provide their personal and financial information before participating in the bidding. With the uncertainty of whether personal information is properly protected, the security of the e-auction website may be crucial in building a user's sense of trust. Therefore, the present study proposed that the perceived security of an e-auction website would

2.1. Trust-extended TAM Hosmer (1995) defined trust as the expectation that both parties in a transaction will meet commitments, negotiate honestly, and refrain from taking advantage of others. Because of the lack of physical contact between sellers and consumers and the inability to inspect products before purchase in online shopping environment, trust is important. A number of studies suggested that the lack of trust in online businesses discouraged consumers from shopping online (e.g., Clark, 1990; Hoffman et al., 1995). Gefen et al. (2003) suggested that online shopping intentions are the outcome of both consumers’ assessment of information technology and their trust of the shopping websites. Trust was found to enhance prediction of consumer adoption of new technology and was an antecedent of perceived usefulness (Dahlberg et al., 2003; Ha and Stoel, 2009; Pavlou, 2003), attitude (Chen and Tan, 2004; Ha and Stoel, 2009; Suh and Han, 2002), and behavioral intentions (Gefen and Straub, 2003; Pavlou, 2003; Suh and Han, 2002). 20

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an item (Borle et al., 2006). Although some websites send an e-mail message to bidders when they have been outbid, it still takes time and effort to check for an e-mail message and submit a new bid. This attention and action required for e-auctions may reduce ease of use. Consumers find enjoyment in shopping (e.g., Backstrom, 2011; Cox et al., 2005; Davis and Hodges, 2012). However, the length of time involved in passively waiting during an e-auction may dampen the “thrill of the hunt” offered by the e-auction experience. The thrill of finding a bargain is an important part of the enjoyment experienced from shopping (Cox et al., 2005). E-auctions are not only time consuming but also seen as risky (Hou and Elliott, 2016). If the bidder does not win the product after the large investment of time, not only will there be a decrease of enjoyment, but the lack of consummation may make e-auctions seem less useful. Thus, the active and passive time involved in e-auctions may reduce perceived usefulness, perceived ease of use, and enjoyment of e-auctions..

have a positive influence on consumer trust of e-auctions. H1:. Perceived security associated with e-auction websites positively affects consumer trust of e-auctions. 3.2. Connection speed as an antecedent variable In this study, connection speed was defined as how fast data are transmitted when consumers browse, search, and bid on e-auction websites. Connection speed, which is referred to as response time and evaluates how fast a website reacts to a user's actions, was included in the WebQual instrument (Loiacono et al., 2007). The faster the data are transmitted, the shorter the response time. Connection speed is also a part of the assessment construct that researchers have used to evaluate the service quality of the B2C website related to online shopping experiences (Gounaris and Dimitriadis, 2003). Connection speed has been identified as an important factor affecting adoption and postadoption usage of new technologies such as wireless application protocol (WAP) (Hung et al., 2003), mobile Internet (Shin et al., 2010), mobile shopping (Yang, 2012), and 3 G networks (Chong et al., 2012). Connection speed of e-auction websites in China is affected by two factors: (a) the general data transmission speed of the country's Internet infrastructure and (b) the capability of the e-auction website's servers. According to CNNIC (2010), about 98% of the total number of Internet users in China, or more than 360 million individuals, are broadband Internet users. However, the connection speed for Chinese Internet users is slower than in many other countries, ranking only 82nd in the world and well behind developed countries such as South Korea, Japan, and the United States (Business Insider, 2015). The eauction server's ability to maintain a number of auctions operating smoothly at one time can have a significant influence on the connection speed. Considering the nature of e-auctions, connection speed may have a significant impact on a consumer's experience. In a typical eauction bidding process, potential buyers are allowed to repeatedly bid over a period of time to maintain the highest bid until the auction ends. Therefore, “the last minute outbid” becomes a strategy for bidding online for many consumers. However, a slow connection speed may cause a delay in bidding, thus reducing the chances of winning an auction. If the purchase is not completed because of a slow connection, it may reduce perceived usefulness of the site. Research has confirmed that connection speed affects perceived usefulness of a new technology (e.g., Chong et al., 2012; Loiacono et al., 2007; Shin et al., 2010). In addition, a fast connection speed may enhance the feeling of flow—i.e., “a positive, highly enjoyable state of consciousness” (Sánchez-Franco and Roldán, 2005, p. 24)—during the user experience, which augments enjoyment from the website. Thus, a slow connection speed may reduce both perceived usefulness of the website and enjoyment.

H3a:. Time consumption associated with e-auction websites negatively affects perceived usefulness of e-auctions. H3b:. Time consumption associated with e-auction negatively affects perceived ease of use of e-auctions.

websites

H3c:. Time consumption associated with e-auction websites negatively affects enjoyment of using e-auctions. 3.4. Economic gain as an antecedent variable The main advantages of online shopping are convenience, access to an expanded variety of products, and competitive prices (Ha and Stoel, 2009). For e-auctions, some of these advantages become even more attractive. First, auctions serve consumers who are interested in products not readily found in brick-and-mortar stores, such as vintage accessories and celebrity-signed items. Previous research has confirmed that online bidders tend to seek product variety (Lee et al., 2009; Hou and Elliott, 2014) and have a higher need for uniqueness (Hou and Elliott, 2014). Lee et al. (2009) found that a bidder's tendency to seek product variety is associated not only with perceived hedonic value but also with utilitarian value, such as acquiring a rare item, which supports the potential for economic benefits from eauctions. Second, auctions frequently result in savings for the buyer, because an item's price is determined by the demand or competition for the item (Abdul-Ghani et al., 2011). Large numbers of items in the eauction marketplace may result in less competition for a specific item and, consequently, a lower final price. In addition, the starting price is usually very low to attract more bidders. Bidders have control over what they consider to be a reasonable price range. Therefore, by participating in an e-auction, consumers may acquire a product at a lower price than by purchasing it from a traditional retailer (Cameron and Galloway, 2005). From the perspective of obtaining meaningful items or rare products and paying an acceptable price, e-auctions provide consumers with the potential for economic gain, which may increase a consumer's perceived usefulness of e-auctions.

H2a:. The connection speed associated with e-auction websites positively affects consumer perceived usefulness of e-auctions. H2b:. The connection speed associated with e-auction websites positively affects consumer enjoyment of using e-auctions.

H4:. Economic gain associated with e-auctions positively affects perceived usefulness of e-auctions.

3.3. Time consumption as an antecedent variable Unlike a traditional auction, which generates a winner in a very short time period, the e-auction involves more time consumption because it has a longer span of time during which potential bidders have access to the bidding. Time consumption entails the active (e.g., checking the site and bidding) and passive (waiting) time spent in the process of an e-auction. In other words, it includes the elapsed time beginning with the consumer's first bid and ending with the auction's conclusion with a winning bidder. A typical online auction lasts for several days. During this period, bidders need to check continuously as to whether they have been outbid. Inexperienced bidders in particular invest time actively in e-auctions as they repeatedly check and bid on

3.5. Playfulness as an antecedent variable Although the final result of an e-auction could be exciting or disappointing, the process of bidding and competing for a product may be fun and pleasurable. According to Heyman et al. (2004), the “thrill of competing with other bidders” creates “an excited and competitive state of mind,” which is called the “opponent effect” (p. 11). The opponent effect increases a bidder's willingness to pay for a product and the number of bids submitted in an e-auction because the competition raises his or her perceived value of that item (Heyman 21

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et al., 2004). The difference between a traditional bidding process and an online bidding process is that e-auction buyers have more flexibility to use different strategies because the e-auction bidding process spans a longer period of time. For example, bidding at the last moment before the auction is closed, termed last-minute sniping, is one exciting bidding strategy (Kamins et al., 2011). Adopting different strategies to compete with other bidders makes e-auctions a playful experience. Playfulness is defined as “a situational characteristic of an interaction between an individual and the environment” (Moon and Kim, 2001, p. 219). Playfulness can be treated as a motivational characteristic or an individual's state of mind leading to a positive affective response (Lin et al., 2005). For this study, playfulness specifically refers to the interaction between the buyer and the e-auction—the strategic bidding process is fun because of the underlying competitiveness and consequent excitement. For those consumers who are seeking hedonic shopping experiences, playfulness may affect the enjoyment of using e-auctions.

H6b:. Social motives associated with e-auctions positively affect enjoyment of using e-auctions.

H5:. The playfulness associated with e-auctions positively affects enjoyment of using e-auctions.

H7a:. Trust associated with e-auctions positively affects perceived usefulness of e-auctions.

3.6. Social motives as an antecedent variable

H7b:. Trust associated with e-auctions positively affects consumer attitude towards e-auctions.

3.7. Trust as an extended TAM variable Consumers’ trust towards e-auctions is the key factor that influences their beliefs about shopping safety (Ha and Stoel, 2009). Trust towards e-auctions indicates a consumer's belief that using e-auctions for shopping purposes is reliable and credible. A consumer's subjective trust towards e-auctions could increase confidence in adopting it as a means of shopping in the online environment. The more a consumer trusts a certain technology like e-auctions, the more he or she will consider it to be useful because this technology alleviates worries about shopping safety (Chen and Tan, 2004; Dahlberg et al., 2003; Pavlou, 2003). In addition, faith that e-auctions are trustworthy may result in the perception of e-auctions as a reliable tool for shopping, which leads to a positive attitude towards the use of e-auctions.

3.8. Enjoyment as an extended TAM variable

Social motives, described as the desire for interpersonal communication and social interaction, have played an important role in users’ participation in many online activities such as Internet usage (Stafford and Gonier, 2004), mobile app usage (Wu, 2013), e-word-of-mouth (Hennig-Thurau et al., 2004), and blogging (Urboniene, 2014). Shopping itself is a social activity, offering not only the acquisition of products but also social and hedonic benefits (e.g., Dennis et al., 2007; Dholakia, 1999). Social shopping, which entails socializing and bonding with others, is one of the six hedonic shopping motivations identified by Arnold and Reynolds (2003). Social interaction together with convenience and variety seeking are key shopping motivations for online shoppers (Rohm and Swaminathan, 2004). Specifically, Alba et al. (1997) suggested that the desire for social interactions could determine a shopper's choice of retail format. Interactions among people are part of the purchasing process within e-auctions, which suggests the relevance of social motives to the experience (Joines et al., 2003). According to Parsons (2002), four out of five social interaction shopping motives (i.e., “social experience outside the home,” “communications with others having a similar interest,” “peer group attraction,” and “status and authority”) identified by Tauber (1972, p. 48) also relate to the motives of online shoppers. Social experience, communications, and peer group attraction may be salient in the context of e-auctions as well. For instance, communication and peer group attraction may become important on an e-auction website where rare specialty items are available; consumers have the opportunity to ask the seller questions about the unusual item or to bond socially with like-minded collectors. Through interactions during the bidding process, consumers may not only acquire goods they desire but also share interests, knowledge about the products, and information about the sellers with each other. During an e-auction, consumers may receive useful product information and interesting stories about rare objects from others, which may enhance their general knowledge and aid in choosing items and adjusting bids. Cameron and Galloway (2005) showed that information seeking was one of the practical reasons that e-auction users interact with other users. As a result, gaining information during the process can enhance the perceived usefulness of e-auctions. Additionally, the feeling of belonging, recognition, and acknowledgment from peers, as well as friendship and respect gained from the social experiences during e-auctions, may bring buyers great enjoyment.

As described previously, the intrinsic motivation of perceived enjoyment was added to the original TAM to better understand technology acceptance by consumers (Davis et al., 1992). Studies have shown that perceived enjoyment positively impacts perceived usefulness and attitude towards new technology applied in various arenas such as online shopping (e.g., Ha and Stoel, 2009), education (e.g., Teo and Noyes, 2011), television commerce (Yu et al., 2005), and mobile commerce (e.g., Kim et al., 2009). E-auctions’ gamesmanship (i.e., strategies involved in play), exposure to unique or limited products, and social experiences during the bidding process may offer hedonic shopping experiences to those who desire them. For these consumers, e-auctions could be considered a useful tool for achieving their goal of fun. From this point of view, enjoyment associated with e-auctions may positively affect their perceived usefulness. Moreover, a consumer may have a positive attitude towards e-auctions because of the desired enjoyment that the auctions bring. Previous studies indicated that perceived enjoyment positively affects the perceived usefulness of (e.g., Rese et al., 2014; Venkatesh, 1999) and attitude towards (e.g., Agrebi and Jallais, 2015; Childers et al., 2001; Van der Heijden, 2003) adopting a new online technology. H8a:. Enjoyment associated with e-auctions positively affects perceived usefulness of e-auctions. H8b:. Enjoyment associated with e-auctions positively affects consumer attitude towards e-auctions. The combination of perceived usefulness and perceived ease of use affects attitudes towards new technology usage (e.g., Liaw and Huang, 2003). Perceived ease of use has a positive effect on perceived usefulness, because achieving an outcome requires less effort when the technology is easy to use. As the TAM suggests, perceived usefulness affects behavioral intentions, and this influence may be mediated by attitude (Ha and Stoel, 2009). These relationships were also supported in various settings such as e-shopping and e-learning (Lee et al., 2005; Shih, 2004; Yu et al., 2005). The present study aimed to examine the factors likely shaping the success of e-auctions in China. Hence, the study was conducted among consumers who had already adopted and were currently using e-auctions. To explain experience variables that may lead to success of e-auctions among current users, attitude towards e-auctions, rather than the behavior intention of adopting e-auctions for the first time, was the focus of this study.

H6a:. Social motives associated with e-auctions positively affect perceived usefulness of e-auctions. 22

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Fig. 1. Proposed conceptual model with hypotheses.

2005; Suh and Han, 2002; Yen et al., 2010; Yu et al., 2005) and adapted to reflect the context of e-auctions. The present researchers developed new items for two of the proposed antecedent variables in this study: time consumption and economic gain. Items for security, connection speed, playfulness, and social motives were adapted from previous research (i.e., Ahn et al., 2007; Gefen and Straub, 2003; Loiacono et al., 2007; O’Cass and Fenech, 2003) and combined with several items constructed by the present researchers to better describe activities related to e-auctions. The second part of the survey included questions regarding demographic characteristics of the respondents and their e-auction usage. Along with describing the sample, these characteristics were used as control variables in the model. Seven-point Likert-type scales, ranging from 1 (strongly disagree) to 7 (strongly agree), were used for all variables presented in the conceptual framework. The items are found in Table 2. The survey questionnaire was first developed in English and then translated into Chinese. Two bilingual researchers then back-translated the survey into English and compared it with the original questionnaire to assess the accuracy in expression. A pilot test of the instrument was conducted using 20 international students from China at a large university in the Midwest of the United States. Pilot test results led to minor wording changes to some items to enhance accuracy of expression.

Therefore, the following hypotheses were proposed for this study: H9a:. Perceived ease of use of e-auctions positively affects perceived usefulness of e-auctions. H9b:. Perceived ease of use of e-auctions positively affects consumer attitude towards e-auctions. H10:. Perceived usefulness of e-auctions positively affects consumer attitude towards e-auctions. In the online shopping environment, usefulness is associated with trust, enjoyment, and ease of use in various shopping activities (Ha and Stoel, 2009). Thus, usefulness is treated as a primary determinant of attitude towards a new technology, whereas trust, enjoyment, and ease of use function as secondary determinants (e.g., Chen and Tan, 2004; Childers et al., 2001; Davis et al., 1992; Ha and Stoel, 2009). As a result, hypotheses 7, 8, and 9 represent three partial mediation effects, in which perceived usefulness is the mediator between trust, enjoyment, or ease of use and attitude. To better understand the factors affecting Chinese e-auction users’ attitudes towards e-auctions, age, gender, e-auction frequency, money expenditure, and shopping product category were included as control variables in the proposed conceptual model illustrated in Fig. 1. 4. Method 4.1. Sampling and procedure

4.3. Data analysis

With the help of a marketing research firm, data for this study were collected via an online survey. To identify young, educated Chinese online shoppers with e-auction experience, the survey was distributed randomly in China to male and female college student members of the firm's survey panel. The respondents were compensated with points they could use to redeem gift cards. Only those responding in the affirmative to two screener questions—“Have you participated in eauctions before? ” and “Are you currently an e-auction user? ”—were directed to the survey. College students were selected because they have been found to make up more than half of the online shopping population in China (IResearch, 2010) and to be active adopters and users of online technology such as e-auctions (Shiu and Dawson, 2004).

The data collected from the survey were analyzed using the Statistic Package for Social Science (SPSS 21) and M-plus 7. A descriptive analysis was conducted to profile the respondents. Exploratory factor analysis and confirmatory factor analysis as part of structured equation modeling (SEM) were used to examine the reliability and validity of the constructs. SEM was also used to test the hypotheses forming the conceptual model. SEM was applied because of its capability of estimating relationships among constructs with multiple measurement items in a multivariate environment (Gross and Brown, 2008). Chisquare and goodness of fit measures were assessed in SEM.

4.2. Measures

5.1. Descriptive statistics

The first part of the survey consisted of items exploring consumer perceptions of e-auctions. The items related to extended TAM variables were taken from previous studies (i.e., Kulviwat et al., 2007; Lee et al.,

Of the 1145 questionnaires distributed to the college students, 394 responded affirmatively to the two screener questions. Therefore, about one in three college students surveyed were current e-auction users. Of

5. Results and discussions

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validity (Thomas and Nelson, 1996). Items exhibiting adequate factor loading ( > .55; Nunnally and Bernstein, 1978) and low cross-loading ( < .30; Kline, 1998) were retained. Eleven constructs were successfully extracted and included security, connection speed, time consumption, economic gain, playfulness, social motives, trust, enjoyment, usefulness, ease of use, and attitude. A total of 78.10% of the variance was explained by these constructs. Confirmatory factor analysis was then conducted, resulting in unidimensional factors. The measurement model revealed an acceptable model fit, χ2=868.57, df=486, p < .001, CFI (comparative fit index)=.92, RMSEA (root mean square area of approximation =.06, according to Hair et al. (2010) acceptable cut off values (CFI ≥.92 and RMSEA ≤.08) for a sample size less than 250 and number of items greater than 30. Standardized factor loadings above .50 on one factor but below .30 on other factors were used as the threshold for keeping items (Kline, 1994). The standardized factor loadings for each item and the reliability of each construct are reported in Table 2. With the standardized factor loadings ranging from .58 to .87 and the Cronbach's alpha values ranging from .74 to .92, convergent validity and internal consistency were satisfied (Hair et al., 2010). The correlations for constructs, the average variance extracted (AVE) for each construct, and the square roots of AVE are reported in Table 3. All AVEs were above .50, and the square roots of AVEs for all constructs except trust were larger than the correlations for each respective construct. The square root of AVE of trust (.78) was slightly smaller than the correlation between trust and attitude (.79). However, because the standardized path coefficient between trust and attitude (.39) was not close to 1, the researchers decided to retain these two constructs. These results provide support for both convergent and discriminate validity (Fornell and Larcker, 1981).

Table 1 Demographic characteristics of the sample (N=210). Demographic characteristics

n

%

Gender Female Male

141 69

67.14 32.86

Age 18–22 23–30 Older than 30

135 74 1

64.29 35.24 .48

Student level Freshman Sophomore Junior Senior Graduate

6 44 83 56 21

2.86 20.95 39.52 26.67 10.00

Major Business and management Engineering Social sciences Art and Design Natural sciences Others

93 44 28 24 14 7

44.29 20.95 13.33 11.43 6.67 3.33

E-auction frequency Less than 1 product per month 1 to 3 products per month 4 to 6 products per month More than 6 products per month

46 137 23 4

21.90 65.20 11.00 1.90

Monthly expenditure on e-auction Less than 100 Yuan RMB 101–250 Yuan RMB 251–500 Yuan RMB More than 500 Yuan RMB E-auction product category Apparel and accessories Electronics Books and CDs Virtual products Collectables

35 129 34 12 80 56 26 19 8 20

16.70 61.40 16.20 5.70 38.10 26.70 12.40 9.00 3.80 9.50

1

.50

Food Other

5.3. Hypotheses testing Structural equation modeling with a maximum-likelihood estimation procedure was utilized to test hypotheses. The results indicate an acceptable model fit, χ2=952.19, df=522, p < .001, CFI=.92, RMSEA=.06. The chi-square to degrees of freedom ratio was 1.82, which falls within the acceptable range of 1–3 suggested by Carmines and McIver (1981). The SEM path coefficients are shown in Fig. 2. As shown in Fig. 2, H1 was supported. Trust was significantly affected by website security (β=.81), and 66% of the variance of trust was explained by security, indicating that a safe environment created by e-auction websites enhanced perceived trust. A significant negative relationship between connection speed and perceived usefulness was found, contradicting the positive relationship proposed for H2a. The correlation between connection speed and perceived usefulness was positive and significant (r=.43, p < .05), and a simple regression also demonstrated that connection speed had a positive influence on usefulness (β=.46, t=7.46, p < .01). Thus, this study's researchers believe the negative relationship in the structural model was due to the nature of SEM. In SEM, when all related variables were controlled at the same time, the residual left for the path of connection speed on usefulness showed a negative effect. Hence, the SEM result should not be interpreted as the connection speed negatively affecting consumers’ perceived usefulness of e-auctions. Connection speed had a positive influence on perceived enjoyment (β=.22), thus supporting H2b. H3a through H3c proposed that time consumption of e-auctions would negatively affect perceived usefulness (H3a), ease of use (H3b), and enjoyment (H3c) of e-auctions. None of the paths were statistically significant. The mean value for perceived time consumption (M=5.18, SD=1.1) indicated that respondents perceived e-auctions to be time consuming. Nevertheless, time consumption did not affect beliefs about e-auctions. A possible explanation might be that Chinese consumers had little experience with auctions before e-auctions were introduced to China in 2003. The time-consuming nature of the format may have

these 394 responses, 210 useable surveys were retained based on having complete data, resulting in a response rate of 18.3%. A majority of the respondents were female (67.14%), between 18 and 22 years of age (64.29%), and either juniors (39.52%) or seniors (26.67%) in college (Table 1). Online auction participation habits of respondents, such as e-auction frequency, money expenditure, and shopping product categories, are shown in Table 1. The sample was skewed because of a larger proportion (67.14%) of female respondents. However, gender differences were found to be insignificant in independent sample t tests among all measurement items’ mean score. Hence, the inclusion of data collected from males was appropriate for further analysis. Skewness and kurtosis of each construct ranged from –1.12 to –.32 and from .07 to 2.29, respectively. The results showed that the data were skewed to the right end of the scale, likely due to the homogeneity of the sample in terms of educational background and age. In addition, variance inflation factors of each construct were assessed and ranged from 1.1 to 1.98. The variance inflation factor values fell below the cutoff range of 5, indicating there was no problem of multicollinearity (Hair et al., 2010). 5.2. Factor analysis and measurement model assessment Exploratory factor analysis utilizing the principal components method with varimax rotation was employed to ensure construct 24

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Table 2 Factor loading and reliability of measurement items resulting from confirmatory factor analysis. Standardized factor loading**

Constructs and measurement items Security (adapted fromO’Cass and Fenech, 2003) I feel secure sending personal information such as my address on e-auction websites. I feel secure sending financial information such as my credit card number on e-auction websites. I feel safe providing personal information such as my address on e-auction websites. I feel safe providing financial information such as my credit card number to e-auction websites. Connection speed (adapted fromLoiacono et al., 2007) The web pages on an e-auction website usually load quickly. When clicking on pages of an e-auction website, the transition is usually fast. Moving between pages when searching product information is usually fast on e-auction websites.a When bidding on e-auction websites, there is usually no lag time.a Time consumption An e-auction usually takes a lot of time before the winning bid is determined.a It is time consuming to make a bid on an e-auction website.a I need to bid several times before the winning bid is determined.a Economic gain The winning bidder usually saves much money on a product.a E-auctions provide opportunities to win desirable products at low prices.a Competitive bidding usually generates reasonable prices.a The final price of a product in an e-auction is usually lower than retail prices.a Playfulness (adapted fromAhn et al., 2007) When bidding on an e-auction website, I do not realize the time that had elapsed. When bidding on an e-auction website, I am not aware of any noise. When bidding on an e-auction website, I often forget the work I must do. Social motives (adapted fromGefen and Straub, 2003) There is a sense of human contact in e-auction sites. There is a sense of sociability in e-auction sites. Participating in an e-auction gives me an opportunity to get to know new people.a Participating in an e-auction allows me to communicate with others who have similar interests to me.a Participating in an e-auction gives me an opportunity to learn from others who have similar interests to me.a Trust (adapted fromSuh and Han, 2002) E-auction websites keep their promises and commitments. E-auction websites keep customers’ best interests in mind. Enjoyment (adapted from Lee et al., 2003) The actual process of participating in e-auctions is pleasant. Overall, I have pleasure participating in e-auctions. Usefulness (adapted fromKulviwat et al., 2007) Using e-auctions help me be more effective in shopping. Using e-auctions help me be more productive in shopping. Ease of use (adapted fromYen et al., 2010) It is easy to bid in an e-auction. Overall, it is easy to use an e-auction website. It didn’t take long to learn how to use an e-auction website.a Attitude (adapted fromYu et al., 2005) Participating in e-auctions is beneficial. Participating in e-auctions brings benefits for me. ** a

Cronbach's α

Variance explained (%)

.92

79.8

.88

74.4

.78

69.5

.82

64.9

.81

72.4

.91

73.3

.74

80.2

.80

83.4

.81

84.2

.81

72.7

.83

85.3

.78 .86 .83 .86 .77 .80 .82 .81 .80 .85 .58 .80 .62 .78 .72 .84 .86 .60 .78 .81 .78 .76 .80

.80 .76 .80 .83 .83 .82 .74 .87 .70 .88 .80

p < .01. Items created by the present study's researchers.

been acceptable to Chinese users because this was a fundamental feature of e-auctions since their inception. Another possible explanation was evidenced by the results related to H4 (β=.20) and H5 (β=.45). Results related to H4 indicated that the economic gain associated with e-auctions had a positive effect on perceived usefulness of e-auctions. Results related to H5 indicated that the playfulness associated with e-auctions had a positive effect on perceived enjoyment of e-auctions. Thus, it may be surmised that eauction users were accepting of the time spent on e-auction websites because they perceived that the outcome of economic gain (utilitarian value) justified the time input and/or that the time spent was positively evaluated due to the playfulness or fun (hedonic value) derived from the experience. Social motives had a significant influence on perceived usefulness (β=.50) and perceived enjoyment (β=.28) of e-auctions, supporting both H6a and H6b. H7a proposed that consumer trust towards eauctions would have a positive influence on perceived usefulness of eauctions. The result (β=.22) supported this hypothesis and confirmed the findings from previous research (e.g., Dahlberg et al., 2003; Pavlou, 2003). Furthermore, trust positively affected consumer attitude to-

Table 3 Correlation coefficients between constructs and construct average variance extracted (AVE). Constructs

1

2

3

4

5

6

7

8

9

10

11

1. Security 2. Connection speed 3. Time consumption 4. Economic gain 5. Playfulness 6. Social motives 7. Trust 8. Enjoyment 9. Usefulness 10. Ease of use 11. Attitude AVE Square root of AVE

— .65 .16 .38 .54 .70 .74 .53 .56 .60 .72 .70 .84

— .15 .48 .47 .63 .69 .57 .43 .60 .64 .64 .80

— .41 .17 n.s. .20 n.s. n.s. n.s. n.s. .56 .75

— .35 .49 .47 .41 .49 .37 .46 .54 .73

— .61 .56 .69 .68 .44 .66 .61 .78

— .74 .69 .75 .54 .78 .62 .79

— .68 .68 .60 .79 .61 .78

— .68 .72 .79 .67 .82

— .62 .77 .69 .83

— .73 .60 .77

— .71 .84

Note: n.s.=not significant; all correlation coefficients are significant at the p value < 0.5 level, except for those noted as n.s.

25

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Fig. 2. SEM path coefficients and model fit for the proposed model (standardized path coefficients with t values in parentheses); *p < .05; **p < .01; dashed lines=nonsignificant paths.

makes sense given the strong relationship between attitude and behavioral variables (Ajzen and Fishbein, 1977). However, when entering the control variables with proposed antecedents and extended TAM variables together, none of the control variables had a significant effect on attitude. This suggests that the experience of e-auctions is similar for consumers with varying demographic and e-auction shopping characteristics. A summary of the hypothesis testing results is shown in Table 4.

wards e-auctions (β=.39), supporting H7b. The results related to H7 suggest that perceived usefulness of e-auctions not only depends on the functional benefits provided, such as economic gain and social interactions associated with e-auctions, but also their trustworthiness. Perceived enjoyment had a significant influence on perceived usefulness (H8a: β=.25) and consumer attitude (H8b: β=.38) towards e-auctions, supporting the respective hypotheses. H9a and H9b proposed that perceived ease of use would positively affect perceived usefulness and attitude towards e-auctions. The results supported these hypotheses as well (H9a: β=.29; H9b: β=.22). Finally, perceived usefulness had a positive impact on consumer attitude towards eauctions (H10: β=.24). The significant paths of H7, H8, H9, and H10 confirm the existence of partial mediating effects of usefulness on the relationships between attitude and trust, enjoyment, and ease of use. The indirect effects of trust, enjoyment, and ease of use on attitude through usefulness did not eliminate their direct effects on attitude. Comprehensively, these results align with previous studies (e.g., Childers et al., 2001; Ha and Stoel, 2009; Van der Heijden, 2003; Venkatesh, 1999) and confirm the reliability and robustness of the extended TAM. Based on hypotheses testing, the authors found playfulness, social motives, and connection speed were contributors to perceived enjoyment and explained 64% of the variance for enjoyment. Gamesmanship and social activities associated with e-auctions appeared to be main contributors to consumer enjoyment from e-auctions. Usefulness was influenced mainly by social motives, followed by ease of use, enjoyment, and economic gain; this illustrates that perceived usefulness was shaped by both hedonic (social motives, enjoyment) and utilitarian (ease of use and economic gain) benefits. These four variables explained 67% of the variance for usefulness. The R2 value shows that 79% of the variance for attitude was explained by trust, enjoyment, usefulness, and ease of use. This illustrates that trustworthiness (β=.39) and enjoyment (β=.38) provided by e-auctions have more influence on consumer attitude than do the original TAM variables of usefulness (β=.24) and ease of use (β=.22), supporting the necessity of extending the original TAM. Several control variables, including age, gender, e-auction use frequency, money expenditure, and shopping product category, were used in the SEM model. When entering the control variables alone, only one of the five variables, e-auction use frequency, had a significant influence on attitude towards e-auctions (β=.31, t=3.11, p < .01), which

5.4. Ad-hoc fully recursive model A fully recursive model was created to enhance the understanding of the relationship between the predictive variables and the outcome variables. The model fit index indicated a better fit for the fully recursive model than for the originally proposed model, χ2=813.67, df=502, p < .001, CFI=.93, RMSEA=.05. The fully recursive model included five significant paths that were not proposed in the original model (Table 5). Security had a positive influence on perceived ease of use of eauctions. Currently, most e-auction websites use third-party processors (similar to PayPal) that retain and protect consumer credit card and address information. This feature not only enhances the security of the transaction but also makes “one click” payments possible. Hence, it is possible that security features also reduce the complexity of shopping online for consumers, thus increasing a consumer's perceived ease of use of e-auctions. The fully recursive model also revealed two significant paths related to connection speed. Connection speed had a positive impact on trust and perceived ease of use of e-auctions. As mentioned previously, China's average Internet connection speed is relatively slow compared to that found in developed countries. Thus, an e-auction firm with servers that ensure a faster connection speed may increase consumer trust, as the company may be seen as technologically savvy and dedicated to establishing a consumer-centered e-auction website. The fast connection also reduces response time between operations, thus enhancing consumer experience on the website. A fast connection provides immediate response and reduces any complications caused by connection lags (e.g., delay caused by multiple clicking on a link to ensure it has launched). As a result, consumers may perceive enhanced ease of use. The fully recursive model showed that playfulness had a significant 26

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Findings of the present study regarding value derived from the eauction experience highlight the importance of creating monetary value and unique e-auction website experiences. The economic gain associated with e-auctions was an important factor in shaping consumers’ perception of usefulness. In line with important benefits of B2C online shopping (Ha and Stoel, 2009), e-auctions may provide greater advantages by providing consumers with an opportunity to acquire an even wider variety of products, acquire rare products, and purchase at even lower prices than what is available from B2C sites. The utilitarian value created by e-auctions leads consumers to adopt them as a means of online shopping. However, e-auctions are more than a means for acquiring goods. Social motives and playfulness, as evidence of the importance of hedonic experiences, were key antecedents of perceived usefulness and/or enjoyment, which were found to enhance attitudes towards e-auctions. The results of the present study align with those from Lee et al.’s (2009) study, in which both utilitarian shopping value and hedonic shopping value generated from e-auctions influenced consumer preference, which in turn, enhanced consumers’ intention to participate in e-auctions. Previous studies (e.g., Parsons, 2002) have confirmed that social interaction is an important part of online shopping, and the present study validated the key role played by social experiences in enticing consumers to use this technology (e-auctions). Moreover, the present study articulated that the playfulness associated with e-auctions, perhaps from the thrill of competing with other bidders (“the opponent effect”; Heyman et al., 2004), is a main reason that consumers have adopted this form of shopping. Thus, building an e-auction experience that facilitates social interactions with others and gamesmanship in the bidding process will enhance its attractiveness to current Chinese consumers, which may lead to a higher retention rate and more participation among current e-auction users. In turn, additional participation among users may augment the diversity of products and information offered to e-auction site community members. These additions may enhance the respective “treasure hunting” adventure and social engagement potential of e-auction websites, which help to perpetuate retention. Hence, e-auction users should be seen not only as buyers and sellers but also as community builders of and vital assets to the e-auction website. In particular, adding group auctions (i.e., sellers offering a whole lot of products at a cheaper price when the team of buyers reaches the set threshold) and reverse auctions (i.e., sellers competing to obtain business from a buyer) may encourage more strategic bidding, which fosters a playful experience and, consequently, increases the attractiveness of e-auctions for consumers. In terms of the effects of extended TAM, as predicted, the model was proven to be robust in explaining Chinese users’ attitudes towards e-auctions. In the present study, all paths within the extended TAM were significant. Trust towards e-auctions, along with usefulness, ease of use, and enjoyment associated with e-auctions, generate favorable attitudes towards e-auctions. In terms of strategy, the results suggest that e-auction websites should enhance their features leading to fulfillment of a consumer's desire for efficient and safe acquisition of products of good value along with desires for social connection and playfulness. The present study, which examined the influence of a more comprehensive set of antecedent factors along with the extended TAM on current Chinese users’ attitudes towards e-auctions, contributes to the scant body of research on Chinese consumers’ acceptance of e-auctions (e.g., Huang and Dai, 2006; Lu et al., 2009; Quaddus et al., 2005). The results of this present study support the positive impact of website security, connection speed, economic gain, playfulness, and social motives on extended TAM variables and the consequent impact on consumer attitudes towards e-auctions in China. Specifically, playfulness and social motives had the largest impact. In addition, the present study reaffirms the robustness of the extended TAM in explaining the acceptance of new technology and contributes to the validation of the extended TAM in Asian cultures.

Table 4 Summary of Causal Model Testing. Hypothesis

Proposed effects

Result

H1: Security → Trust H2a: Connection speed → Usefulness H2b: Connection speed → Enjoyment H3a: Time consumption → Usefulness H3b: Time consumption → Ease of use H3c: Time consumption → Enjoyment H4: Economic gain → Usefulness H5: Playfulness → Enjoyment H6a: Social motives → Usefulness H6b: Social motives → Enjoyment H7a: Trust → Usefulness H7b: Trust → Attitude H8a: Enjoyment → Usefulness H8b: Enjoyment → Attitude H9a: Ease of use → Usefulness H9b: Ease of use → Attidude H10: Usefulness → Attitude

+ + + − − − + + + + + + + + + + +

S R S N N N S S S S S S S S S S S

Note: +=positive effect; –=negative effect; S=significant; N=not significant; R=significant but in reverse direction to the original hypothesis. Table 5 Additional significant paths from the fully recursive model. Paths

Standardized path coefficient

t value

P

Connection speed → Trust Social motives → Trust Playfulness → Usefulness Security → Ease of use Connection speed → Ease of use

.23 .30 .29 .30 .33

2.54 2.42 2.99 2.84 3.40

.011 .016 .003 .005 .001

impact on consumers’ perceived usefulness of e-auctions. This result indicates that the playfulness of e-auctions contributes to both the hedonic and utilitarian value for Chinese consumers. E-auctions provide not only an alternative way of acquiring products but also a source of entertainment and fun that appears to affect participation in e-auctions. In the fully recursive model, social motives were found to be positively related to consumer trust towards e-auctions. This result was not surprising. When consumers are highly involved in an online eauction website, they build relationships with other users who are central to the e-auction. Communications among users and involvement in the user community could foster a level of trust. 6. Conclusions and implications This study examined the effects of various antecedent factors (Internet and website features [security and connection speed] and variables associated with consumer participation in e-auctions [time consumption, economic gain, playfulness, and social motives]) on extended TAM variables (trust, enjoyment, usefulness, and ease of use). These factors affected attitudes towards e-auctions held by current Chinese e-auction users. The results regarding website design and infrastructure demonstrate that security features of e-auction websites enhanced not only consumer trust towards the websites but also perceived ease of use of e-auctions. In addition, connection speed had a positive effect on a consumer's overall experience on the eauction website, perceived ease of use, enjoyment, and trust of eauctions. These findings suggest that e-auction websites should put more resources into creating a website with added security protections, effective and efficient functions (e.g., “one click” payment function), and optimal experiences (e.g., efficient browsing and bidding processes) to help build consumer trust towards and enjoyment from eauctions. With the development of the Chinese online market, a website with state-of-art features is becoming a necessity. 27

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