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Toward an Integrated Decision-Making Model for

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Kwabena G. Boakye, Chung-Yean Chiang & Xiao Tang

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JOURNAL OF COMPUTER INFORMATION SYSTEMS
http://dx.doi.org/10.1080/08874417.2016.1235474

Toward an Integrated Decision-Making Model for Consumer Electronic

Kwabena G. Boakye, Chung-Yean Chiang, and Xiao Tang
Georgia Southern University, Statesboro, GA, USA

ABSTRACT KEYWORDS
The study proposes an integrated comprehensive consumer decision-making model by extending the Customer value theory;
customer value, satisfaction, and loyalty framework to include customer experience as an antecedent to customer experience;
continuance intention;
creating value and enhancing satisfaction toward technology continuance intention. Our study incor- hedonic value; partial least
porates perspectives from information systems (IS) and service marketing, where customer value squares; utilitarian value
(hedonic and utilitarian) theory and literature on customer experience with perceived ease of use and
perceived usefulness as its dimensions are found to be drivers of technology continuance intention for
consumer electronics. In addition, partial least squares results from 370 smartphone users indicate that
within consumer electronics, price negatively moderates the relationship between utilitarian value and
satisfaction but not with hedonic value and satisfaction. Contributions of findings and implications are
discussed to provide references for consumer electronic firms in IS and service marketing.

Introduction solid and basic ground for customer experience, we examine the
psychological aspects of humancomputer interactions between
The mobile device industry has become important, influential,
individuals and ICT products and offer a more holistic view to
and highly competitive in todays business world. In 2013, the
current effort, e.g., Dai et al. [17]. Moreover, unlike Dai et al. [17],
mobile industry contributed over US$ 2.4 trillion to the gross
focusing on services such as mobile technology mediated services,
domestic product across the globe [33]. According to Gartner,
this work examines drivers toward consumer electronic product
the information and communication technology (ICT) service
usage. Dai et al. [17] plausibly assumed that the devices used for
and electronic markets reached US$ 3 trillion in 2015 [28],
mobile technology-mediated services do not have any influence
driving productivity and economic growth in todays world
on the customers experience and/or value. This assumption that
economy [7]. Likewise, Associated Press reported that shopping
consumers have no preferences on the mobile devices in order to
by mobile device jumped 59% to $12.65 billion [2]. Statista also
use the mobile technology service may be misleading given that
showed that the retailing e-commerce sales in the United States
the use of hardware influences software satisfaction [40].
is projected to grow to 548 billion dollars in 2019 from a current
Our research objective is to propose an integrated con-
figure of 305 billion dollars [61]. Consumers are relying on
sumer decision-making model that examines (1) how cus-
consumer electronic products and services to make their lives
tomer experience creates value and subsequently enhances
and daily activities easier [15]. As a result of this trend, ICT
consumers decision to continue using electronic products
producers are growing their business models with fewer bound-
and (2) how price affects such VSL framework. In todays
aries. Not only has ICT become ubiquitous but also an integrated
highly competitive technology environment, there is a
part of personal and social lives of todays consumer [31]. For
growing need for technology firms to provide consumers
consumers, the ability to be in control when using technology
with a memorable experience to increase both consumer
brings greater delight, satisfaction, and value for continuance
satisfaction and continuance intention. Humancomputer
intention. Delivering value to consumers and facilitating their
interaction, from an instrumental nature of technology
continuance intention (i.e., continuance usage), therefore, has
standpoint, has received its fair share of criticisms. These
become a major concern for electronic producing and operating
criticisms stem from its exclusive concentration on cogni-
firms in todays consumer electronic markets.
tive-based approaches and inability to account for emo-
Motivated by the mentioned observations on ICT industry,
tional and human factors [4, 18]. With consumer value as
this study is developed with established theoretic frameworks and
a critical predictor of consumer behavior, we lean on cus-
extensive literature reviews to help address concerns related to
tomer value theory to holistically examine consumer moti-
customer continuous intention of usage and extend existing
vations for IT continuance intentions by extending the VSL
understandings. We apply the valuesatisfactionloyalty (VSL)
framework to include customer experience. Further, we
framework to include customer experience as an antecedent
seek to investigate the moderating effect of price on the
and/or precursor to evaluating customer value. Using customer
relationship between value and consumer satisfaction. Price
value theory and technology acceptance model (TAM) [18] as a
is a function of a consumers willingness and ability to

CONTACT Chung-Yean Chiang cchiang@georgiasouthern.edu Department of Logistics & Supply Chain Management, Georgia Southern University, PO Box
8036, Statesboro, GA 30460, USA.
2016 International Association for Computer Information Systems
2 K. G. BOAKYE ET AL.
purchase and use a product or service. However, the impact
of price on customer value has received mixed results
[35, 76]. We, hence, join in other research works to exam-
ine the role of price on consumer satisfaction.
This study contributes to the field from a managerial
decision-making and an academic theory improvement
point of view. First, this work contributes to information
systems (IS) by validating critical antecedents to smartphone
continuance intention in order to assist technology managers,
especially hardware providers have a more insightful under-
standing on design processes that enhance consumer deci-
sion-making. Using smartphone as the study target does
lead to additional contribution to field since smartphone
shows additional personal attributes which many other tech-
nology products do not. For example, the brand loyalty and
the overall design make this product different from many
others. Hence, although the driver for continuous usage of
e-reader was tested [75], this study provides a more reliable
and applicable results. Second, this study contributes to both
IS and service marketing fields by providing connections
among customer experience, customer value, customer satis-
faction, and continuance intention toward technology usage.
To the authors best knowledge, in the area of computer-
mediated communication, there is little empirical research
that holistically investigates the integration of customer
value theory and customer experience in consumer decision-
making toward consumer electronic products. We therefore
contribute to the IS and service marketing literature by pro-
viding a different flavor and perspective to examining factors
that motivate and stimulate consumer decision-making pro-
cess toward smart phone continuance intention. Third, we
considered the moderating effect of price on the satisfac-
tioncontinuation usage framework. Unlike the classic TAM
which assumes satisfaction leads to continuous usage, we
assume that the intention for further usage is moderated by
the price of the device.
The organization of this study is described in the following
order. The Theoretical background section of the article
presents the relevant literature while the Literature review
and hypotheses development section reports the research
hypotheses. Next, we introduce both the research methodol-
ogy, analysis, and results in the Research methodology and
data collection section. The Discussion and implication
section is devoted to the discussion and implication of the
results while the Conclusion, limitation, and future exten-
sion section concludes the article, outlines, limitations of the
study and suggests directions for future research.
Theoretical background
Customer experience
Recently, customer experience has and is continuing to gain
attention in both scholastic and practitioner communities.
One of a business core objectives is to have the ability to
create superior customer experience [69]. Customer experi-
ence is viewed as a journey, beginning with the customers
evaluation of the product and/or service before the encounter,
including experiences during the encounter, and continuing
after the encounter [50, 69]. With its roots in many disciplines
including psychology, economics, social psychology, manage-
ment, and marketing, customer experience is conceptualized
as the customers subjective response to the holistic direct and
indirect encounter with the firms service or product [25, 39].
It is therefore not surprising that Gentile et al. [27] (p. 397)
define customer experience to include The customer experi-
ence originates from a set of interactions between a customer
and a product, a company, or part of its organization, which
provoke a reaction. This experience is strictly personal and
implies the customers involvement at different levels
(rational, emotional, sensorial, physical, and spiritual).
Research studies by scholars establish both the economic
value and impact of customer experience on firms [45, 54].
Customer experience is a powerful activity that shapes the
value (hedonic or utilitarian) and/or take-away impression
consumers derive from interacting with the product. This
process of interaction motivates the decision-making process
of the consumers intention [9, 10]. In this study, we concep-
tualize customer experience with the electronic product
(smartphone) as a psychological state in which consumers
engage in cognitive and affective processing of the products
usage. The outcome of this psychological state is the impres-
sion formed and/or the value the consumer derives from
interacting with the product [8]. Hence, we use the TAM
[21] to anchor our conceptualization of customer experience
since it has the tendency to influence the cognitive and affec-
tive state of the consumer over time.
TAM, adapted from the theory of reasoned action [23], was
initially developed to study technology adoption among con-
sumers. TAM explains the acceptance and usage of informa-
tion technology and IS, using two key constructs perceived
usefulness (PU) and perceived ease of use (PEOU) [21]. It is a
well-established model that broadly predicts and explains
human behavior in various domains [12]. Adapting Davis
et al.s [21] definition to this model, PU refers to the degree
to which a consumer perceives that using a smartphone will
improve his/her activity-related experience while PEOU refers
to the degree to which a consumer perceives the ease of
interaction with a smartphone and is able to effortlessly com-
plete a task or activity.
Our justification for using PU and PEOU as underlying
constructs of customers experience is based on the assumption
that they both affect the decision-making strategies that consu-
mers use to analyze and evaluate their cognitive and affective
trade-offs in assessing value. In summary, these two key dimen-
sions shape consumer value by perfectly exemplifying the cog-
nitive and affective processes the consumer journeys through to
recognize value-added in technology continuance.
Customer value theory
Value is the consumers overall assessment of the utility of a
product based on perceptions of what is received and what is
given [77]. In services marketing and e-commerce literatures,
consumer value is an essential construct for understanding
consumer preference and motivation in product and/or ser-
vice consumption [16, 36, 44, 59]. Consumer continuance
intention is a function of what constitutes value to the

consumer. While prior studies relate quality to the get
component and price to the give component to shape con-
sumer value [11], recent studies point out other components
or factors that shape consumer value besides quality and price
[60]. It is therefore not surprising to find studies portraying
consumer value as a complex and multidimensional construct
[15, 30, 53].
We consider hedonic and utilitarian value to measure
consumer value in this study. In their study to develop a
scale for value consumption, Sweeney and Soutar [62] found
three dimensions that constitute consumption value. These
three dimensions include functional value (product technol-
ogys capacity to function and perform), emotional value
(product technologys capacity to arouse feelings), and social
value (product technologys capacity to enhance ones social
well-being). Our studys focus is on the technology (electro-
nic) product as an operating platform facilitating service con-
sumption. As such, we concentrate on using hedonic (i.e.,
emotional) and utilitarian (i.e., functional) values to examine
the impact of consumer value on satisfaction. These two value
constructs, mostly explored by both IS and service marketing
scholars, relate to the consumers self-evaluation of the pro-
duct. That is how the consumer feels when interacting with
the product and what the consumer gains from the technol-
ogy platforms required performance. In addition, consumers
ultimately use their experiences with the product to make a
self-evaluation on the products performance. Following this
line of argument, we posit that consumer experiences with
products have the tendency to shape how much value is
assigned to the product of interest.
Literature review and hypotheses development
This study will test the integration of customer experience,
customer value theory, and the satisfaction construct in con-
sumer decision-making toward consumer electronic products
such as smartphones. The extant literature on technology and
consumer electronics and its impact on our lives and produc-
tivity have been well documented. In e-commerce, electronic
retailers have seen a major boost in online retailing activities
by consumers [71, 72, 81].
Consumer satisfaction
Consumer satisfaction is a key driver to increasing customer
loyalty. Prior to purchasing, consumers set expectations on
products and services for which they are likely to purchase.
These expectations are derived either from satisfactory positive
word-of-mouth or prior experiences. This satisfaction is a
broader feeling and a reflection of contentment with a product
or service influenced by quality, price, and personal factors.
Oliver [48] defines satisfaction as the summary psychological
state resulting from when the emotion surrounding discon-
firmed expectations is coupled with the consumers prior feel-
ings about the consumption experience. Hence, a consumers
satisfactory experience in using a product positively influences
his/her post-purchase behavior. The extant research finds satis-
faction to be a strong predictor of consumer continuance beha-
vior [32, 34, 38]. Among other determinants of continuance
JOURNAL OF COMPUTER INFORMATION SYSTEMS 3
intention and repeat purchase, Szymanski and Henard [63] in
their meta-analysis study find satisfaction to be the strongest and
highest correlation with consumer continuance intention and
repeat purchase behavior. Thus, we hypothesize that
H1: A consumers high satisfaction with smartphone usage
positively affects a consumers smartphone continuance
intention.
Utilitarian and hedonic values
Technology products such as mobile devices have significant
value and personal benefits such as communicating with friends,
family and coworkers, the feeling of connectedness, and work-
life balance [56]. It must be noted that mobile devices also have
negative impacts on us, some of which include hindering real
human interaction, privacy leaks, and constant interruptions
among others. In the face of these negative effects, why do
consumers continue to engage with such devices? What informs
the decision-making of consumers to continue using their
mobile devices? Obviously, the positive impact outweighs the
negatives in the quest for continuous adoption and usage. In a
recent study, Beaudry and Pinsonneault [5] assert that an indi-
viduals decision to use a particular technology is based on their
beliefs about aspects of the technology. That is, the value they
derive from using such a technology. Other researchers also
contend that personal attributes contribute to both technology
adoption, acceptance, and continuous usage [79].
In the scientific inquiry of antecedents of satisfaction, research-
ers have inundated the literature with a plethora of antecedents to
consumer satisfaction [18, 73]. Regarding humancomputer inter-
actions, consumers are able to express satisfaction after encounter-
ing experiential value from such interactions. The value a
consumer experiences can be categorized under hedonic and
utilitarian values. With hedonic value, consumers show interest
in the attractive components of the product, causing positive
feelings and emotions toward the product. Hence, we consider
hedonic value a representation of emotional value and/or reward.
As such, the products visual appeal serves as the convenient
dimension in assessing the hedonic value of consumer products.
In addition, satisfaction is achieved when prior expectations of the
product are met, resulting in consumers experiencing positive
feelings and/or emotions. These positive feelings and emotions
indicate the important role value plays in forming and shaping
satisfactory evaluations of a product.
On the other hand, utilitarian value deals with the outcome
resulting from the overall excellence and performance of the
product or service [20]. This is analogous to the functional
value (functional quality) customers expect of products or ser-
vices. In fact, Sheth et al. [59] in their classic value framework
posit that the utility of a technology product is evaluated by its
functional capacity and/or physical performance. Consumers
use a product functionality measured by characteristics such as
dependability, reliability, among others to evaluate their satisfac-
tion with the product. When these functional characteristics are
missing or incapable of accomplishing the targeted tasks, custo-
mers become highly dissatisfied. Researchers have extended
these two perspectives to examining consumer shopping beha-
viors and technology acceptance [20, 29, 73], yet no work has
4 K. G. BOAKYE ET AL.
investigated the hedonic and utilitarian value effect on satisfac-
tion. Therefore, we hypothesize
H2: A consumers hedonic value with smartphone usage posi-
tively affects a consumers satisfaction.
H3: A consumers utilitarian value with smartphone usage
positively affects a consumers satisfaction.
Price
There is a plethora of studies linking price to both satisfaction
and value [1, 37, 51, 76]. A consumers willingness to purchase
and use a product is dependent on the price a consumer is
willing to pay, which is essentially a financial cost. Zeitham
[77] posits that consumers encode prices in ways that are mean-
ingful to them. For example, consumers usually think of and use
price to evaluate the value (i.e., hedonic and utilitarian) for an
acquired product. Moreover, consumers are more likely to eval-
uate their satisfaction levels highly when the price of a product is
low and vice versa. However, there is a possibility that not all
low-priced products provide the necessary satisfactory level that
consumers visualize when they make such purchases.
With the rising influx of consumer technologies (electronics)
on the market, such as smartphones, scholars have investigated
the impact of perceived price in predicting IT adoption [35, 76].
It is also important to note that the direct relationship between
price and value has received mixed findings in the literature [22,
35, 76]. In fact, researchers like Xu et al. [76] incorporated price
into a refined VSL framework and found it not to have any
significant impact on satisfaction and continuance intention. On
the other hand, Kim et al. [35] in their study find price to have a
positive and significant impact on perceived value in their clas-
sical value-based adoption model of technology framework. In
view of the inconclusive influence of price on customer value, we
attempt to consider the influence of price from a different angle
mainly because consumers treat hedonic and utilitarian values
differently given the same price. Our prediction is that consu-
mers will respond more favorably to their hedonic value from
smartphone usage when prices of such products are high.
Likewise, the strength of the relationship between utilitarian
value (the outcome achieved from the overall excellence and
performance of a product and overall satisfaction) and satisfac-
tion will be low with low prices compared to higher prices. As a
result, we anticipate that the value satisfaction relationship is
moderate by price and we hypothesize
H4a: Presence of hedonic value will result in higher consumer
satisfaction when prices are high compared to when they
are low.
H4b: Presence of utilitarian value will result in lower consumer
satisfaction when prices are high compared to when they
are low.
Perceived ease of use and PU
TAM, originally intended to predict IS application, is now
used in a wide variety of contexts (e.g., [65, 70, 73, 82]). In
fact, it was developed to aid our understanding of factors that
individuals rely on to adopt and use technology for utilitarian
purposes [19]. TAM posits that a users intention to use
information technology is determined by the technologys
usefulness and ease of use. This dimension expresses the
customers overall experience in using the technology for a
specific task. Adapting Davis et al.s [21] definition to this
model, PU refers to the degree to which a consumer perceives
that using a smartphone will improve his/her activity-related
experience while PEOU refers to the degree to which a con-
sumer perceives the ease of interaction with a smartphone and
is able to effortless complete a task or activity.
Mobile devices such as smartphones have essentially become
an essential product used to communicate and access informa-
tion anywhere and anytime [58]. Moreover, they provide satis-
faction and delight the consumer. Numerous researchers have
established that value characteristics such as utilitarian value
(i.e., performance of the product with regards to storage capa-
city, processing speed, among others that increase the utility of
the device) contribute to providing consumer satisfaction while
hedonic value (i.e., positive feelings and emotions toward the
product as a result of improvements in the aesthetic appearance
of the device) contribute to providing consumer delight [66, 72,
74]. While these studies have looked at the impact of value to
technology usage, little is known about how consumer experi-
ences influence and contribute to shaping consumer value
toward the decision-making process of continuance intention.
A consumers perceived value of a technology product is
judgmental. Consumers consider the aiding technology valu-
able when they experience an overall effectiveness in perform-
ing a task-related activity with their smartphone. Likewise, the
ease of using the smartphone to perform an effortless activity
has a tremendous influence on how the consumer values the
aiding technology. As consumers find it simple and useful in
their interaction and/or experiences with their smartphones,
either for fun, entertainment, online payment or purchases,
etc., they consider such technology products as valuable to
their cause through experiences they encounter during utili-
zation. Moreover, if a consumer feels that it is easy to use a
technology product, he/she uses this product frequently in
order to identify essential functions that bring value in its
usage. Thus, we hypothesize
H5: A consumers perceived ease of use with smartphone usage
positively affects a consumers utilitarian value.
H6: A consumers perceived usefulness with smartphone usage
positively affects a consumers utilitarian value.
H7: A consumers perceived ease of use with smartphone usage
positively affects a consumers perceived usefulness.
Figure 1 illustrates our proposed integrated research model.
Research methodology and data collection
Measure development
We developed a survey instrument based on prior research.
The items, as displayed in the Appendix, were adapted and

Figure 1. Proposed research model.
contextualized from extant studies and were anchored on a seven-
point Likert-type scale (1 strongly disagree and 7 strongly
agree). The scales for hedonic and utilitarian value were adapted
from [22, 26, 42]. While PEOU and PU were measured using
scales developed by Davis et al. [21], we also adapted items to
measure consumer satisfaction and continuance intention from
Parasuraman et al. [49] and Bhattacherjee [6], respectively. We
measured price with a single item asking respondents how much
they paid for their smartphone. We then averaged the prices to get
a value of $150. Respondents who reported purchasing their
smartphone device on a contract basis for less than the $150
threshold value were placed into the low-price category while the
high-price category included respondents who purchased their
smartphone device on a contract basis for more than $150.
Though this amount may be a low amount, we note that our
respondents are individuals who purchased smartphones with
contractual agreement with one of the telecom giants. These
items were evaluated using an expert panel pretest method. Two
university professors, who are experts in the field of IS and opera-
tions management, and four doctoral students, evaluated the
survey draft to ensure content validity. Based on their recommen-
dations, we remedied the wording, content, structure, and pre-
sentation of the survey questionnaire.
Data collection
We administered the finalized survey questionnaire online to
a convenience sample of undergraduate students enrolled at a
major public university in the southwestern United States. To
get a more heterogeneous sample, we limited the sample to
students enrolled in a core course with multiple sessions that
included numerous majors throughout the college and uni-
versity than sampling in higher level specialized courses. The
research sample comprises of 370 respondents, with a com-
position of 208 males (56.2%) and 162 females (43.8%).
Approximately 49.2% of our sample was within the age
range of 2125 years. In addition, 146 respondents (39.5%)
reported earning $1200 monthly income. A total of 165
respondents (44.6%) earn <$800 monthly income.
JOURNAL OF COMPUTER INFORMATION SYSTEMS 5
A comparison of early and late respondents, using an inde-
pendent sample t-test revealed no significant difference [3].
Although there exists some concerns about the use of college
students as surrogate customers pertaining to their validity and
generalizability [47, 57], students are deemed appropriate for
this study for several reasons. First, students have a higher level
of technology application knowledge than many older adults
[14]. Second, students are an important subpopulation of the
current population of smartphone users [43]. Third, college
students qualify as research subjects for fundamental research
and theory testing because drawing conclusions about theory
rather than population, representativeness is a trivial issue even
though sample representativeness is vital in survey research
[46]. Moreover, Peterson and Merunka [52] claimed that
despite some widespread concerns about college student sam-
ples for theory testing, not a single study has offered convincing
empirical evidence regarding the negative consequences for
research conclusions drawn from them.
Research model assessment and data analysis
With a two-step analytic approach, we analyzed our data
using partial least squares (PLS) on SmartPLS 3.2.1 [55] to
establish the nomological validity of the research model. PLS
was chosen because the statistical technique uses a compo-
nent-based approach for estimation and allows lower minimal
restrictions on measurements on sample size, residual distri-
butions, and measurement scales [13]. Moreover, this study
has multipath research model and the data showed non-nor-
mal distribution properties.
Measurement model evaluation
Performing confirmatory factor analysis, we assessed the mea-
surement models construct validity and reliability. Table 1
presents details of item descriptive statistics and the measure-
ment model, including their validity and reliability. Evidently,
all standardized loadings are high and exceeding 0.5 [24].
Moreover, the average variance extracted (AVE) of every
6 K. G. BOAKYE ET AL.

Table 1. Descriptive statistics, reliability and validity indices, and loadings for The path analysis results show that H2 and H3 are supported
constructs.
with hedonic value ( = 0.671; p < 0.01) and utilitarian value
Construct Item Factor loading Mean SD CR AVE ( = 0.124; p < 0.01) having a positive and significant effect on
Perceived ease of use PEOU1* 0.72 4.93 1.84 0.83 0.55 consumer satisfaction.
PEOU2 0.77 5.40 1.41
PEOU3* 0.65 5.00 1.71 With regards to perceived price as our moderating vari-
PEOU4 0.83 5.89 1.05 able, we find that when price is high, the relationship between
Perceived usefulness PU1 0.72 4.84 1.71 0.92 0.70
PU2 0.76 6.05 1.07 utilitarian value and consumer satisfaction decreases by =
PU3 0.92 5.64 1.31 0.081; p < 0.05, and vice versa. However, our test results fail to
PU4 0.89 5.31 1.50
PU5 0.88 5.64 1.36
confirm the moderating role of price ( = 0.036; p > 0.1) on
Satisfaction CSAT1 0.94 5.15 1.64 0.97 0.90 the relationship between hedonic value and consumer satis-
CSAT2 0.93 5.07 1.66 faction. Thus, H4b is supported but not H4a. Moreover,
CSAT3 0.94 5.21 1.62
CSAT4 0.96 5.19 1.61 consumer experience in terms of PEOU ( = 0.499; p <
CSAT5 0.95 5.21 1.64 0.01) and PU ( = 0.250; p < 0.01) positively affect utilitarian
Hedonic value HV1 0.89 5.34 1.55 0.93 0.80
HV2 0.92 4.76 1.63 value. These results provide support for H5 and H6. In addi-
HV3 0.88 4.98 1.71 tion, PEOU ( = 0.551; p < 0.01) positively affects a consu-
Utilitarian value UTV1 0.91 5.49 1.40 0.89 0.74 mers PU, enhancing the consumers experience. Thus, H7 is
UTV2 0.77 5.44 1.38
UTV3 0.89 5.42 1.48 supported. As displayed in Figure 2, consumer experience in
Continuance intention CI1 0.86 6.02 1.43 0.93 0.81 terms of PEOU and PU both explain 44.8% of the variance in
CI2 0.92 6.17 0.98
CI3 0.93 6.24 0.90 utilitarian value while PEOU alone explains 30.4% of PU.
*Reverse coded. Moreover, both hedonic and utilitarian values predict 60.3%
of the variance in satisfaction while 14% of the variance in
continuance intention is explained by consumer satisfaction.
construct also exceeding the 0.5 cut-off point [24] confirms Figure 2 shows a summary of results of our hypotheses.
evidence of convergent validity. In addition, reliability esti-
mates for each construct are confirmed, using the composite
reliabilities which exceed the 0.7 level. We also assess discri- Discussion and implication
minant validity, which involves a comparison between the The aim of this study is to propose and test an integrated
square root of a constructs AVE and correlation between consumer decision-making model that examines (1) how cus-
that construct and any other constructs, in our model. We tomer experience creates value and subsequently enhancing
show evidence of discriminant validity in Table 2, where the consumers decision to continue using electronic products
square roots of the AVE of each construct (diagonal elements) (smartphone) and (2) how price affects such VSL framework.
are larger than the correlation coefficients between any two Despite the significant progress in understanding technology
constructs. With these results, we conclude that our measure- acceptance and intention to use [36, 68, 80], the problem of
ments have both adequate and acceptable psychometric capturing multiple facets and antecedents of satisfaction with
properties. existing technology and its continuance intention remains a
key research challenge to technology providers and marketers
[64]. The present research combines customer value theory,
Structural model path estimates relevant literature on customer experience, and the popular
TAM to holistically understand consumer decision-making
After examining the measurement validity, we use the boot- motivations for IT continuance intentions.
strapping resampling procedure (with an iteration of 1000 The major findings and contributions for this study come
subsamples drawn with replacements from the initial sample from (1) the consideration of impact of value and (2) the use
of 370 samples) to test the structural model. Significant path of the moderating role of price on consumer satisfaction.
estimates (with t-values) and R-squared values were used in TAM provides a solid ground to establish the relationship
evaluating our research model. The outcome path model between PEOU as well as PU and consumer value. In other
indicates support for all but one hypotheses. As hypothesized, words, consumer value is caused by the PEOU and the useful-
we find consumer satisfaction ( = 0.374; p < 0.01) to posi- ness of the product. In this study, we further examine the role
tively affect continuance intention. Thus, H1 is supported. of value in the mentioned relationship. Our test results show
that value, especially the utilitarian value, has significant
Table 2. Correlation matrix and discriminant assessment. influence on the development of consumer satisfaction. This
CI PEOU UTV HV CSAT PU finding is very solid, logical, and understandable since PEOU
CI 0.90 and PU of product are both very functionally oriented user
PEOU 0.42 0.74 experience and, hence, lead to utilitarian value. Basically,
UTV 0.42 0.63 0.86
HV 0.42 0.53 0.65 0.90 consumers use these functionalities to evaluate the utilitarian
CSAT 0.37 0.52 0.56 0.76 0.95 value of using such technology to perform effective and effi-
PU 0.41 0.54 0.53 0.61 0.64 0.84 cient tasks. When these functionalities either meet consumers
CI: Continuance intention; PEOU: perceived ease of use; UTV: utilitarian value; requirements or exceeds consumers expectations, consumer
HV: hedonic value; CSTA: consumer satisfaction; PU: perceived usefulness.
The square root of the average variance extracted appears on the diagonal while satisfaction levels increase. As a consequence, utilitarian value
the off-diagonals are correlations between constructs. helps to connect the consumer experience and the consumer

**p < 0.01; *p < 0.05.
Figure 2. Structural path coefficients.
satisfaction. On the other hand, hedonic value though is not
directly caused by the consumer experience yet leads to con-
sumer satisfaction as well. We believe that this finding is also
self-explanatory and sustainable since researchers find enjoy-
ment, which is possibly obtained from product design, to be
an important factor in determining consumers continuous
intention [67, 72]. With hedonic value, consumers tend to
show interest in the attractive components of the product
such as the products visual appeal, triggering positive feelings
and emotions toward the product. For example, the golden
iPhone is a good example to show how an attractive product/
design leads to greater demand and consumer satisfaction.
Therefore, the first major contribution of this study is related
to the incorporation of the idea of value and how business is
recommended to consider both the utilitarian and hedonic
value of products to consumers.
Next, our results further indicate the existence of the
moderation effect of price in the link between value and
satisfaction. We find that price negatively moderates the
relationship between utilitarian value and satisfaction but
not between hedonic value and satisfaction. This finding
confirms our common understanding between the cost and
the minimum expected functionalities because utilitarian
value is measured by the fundamental expectation to use a
product. In other words, when getting a mobile phone,
consumers would expect the product to be reliable and
durable. If consumers have to pay more than the fair
price, then these basic functionalities do not necessarily
and maybe negatively lead to better satisfaction. On the
other hand, consumers become highly satisfied if those
functionalities can be acquired with little amount of cost.
Unlike the tested moderating impact between utilitarian
value and satisfaction, the moderating effect between hedo-
nic value and satisfaction is not confirmed. We assume two
plausible reasons to explain the missing moderating effect.
First, people always purchase the product with a favorable
outlook, especially when having choices. As consumers, we
tend to rule out less appealed products from the onset.
JOURNAL OF COMPUTER INFORMATION SYSTEMS 7
It means that when one decides which product to purchase,
the appearance of the product is indifferent and is in the
acceptable price range. Second, consumers do not really care
about the appearance of a technology product but rather its
ability to function for the purpose it was purchased.
Third, the results indicate that consumer satisfaction has a
positive and significant association with continuance inten-
tion. This result is consistent with extant findings [78, 80].
Consumer satisfaction has been extensively validated with the
behavioral intention link and is noted to be a useful and
germane predictor of continuance intention [73]. Satisfied
consumers of technology products tend to continuously use
the product again than dissatisfied customers do. For consu-
mers of technology products to have the continuous intent of
usage, satisfaction has to be guaranteed. Without consumers
gaining satisfaction from using the technology product, their
continuance intention decreases. When such situations occur,
consumers open up to other competing products on the
market that will satisfy their inner desire as well as give
them value for their moneys worth. Hence, technology pro-
viders need to focus on personal factors besides value that
contribute to satisfying the needs of the consumer to grow
their business.
This study also contributes to the literature on customer
experience and its impact on utilitarian value. Here, we con-
ceptualize customer experience as the customers subjective
response to both direct and indirect encounters with the tech-
nology product [39]. We approach this by using two dimensions
of the TAM model (PEOU and PU) as dimensions of customer
experience. These two dimensions are activities that shape the
value a customer derives from utilizing the technology product.
In this study, we find both PEOU and PU to positively influence
the customers utilitarian value. This suggests that consumers
evaluate their experiences with the technology to derive value.
What distinguishes our research from related prior studies
(e.g., [35, 41]) is that while we examine value with two
dimensions, other studies operationalized value as an overall
construct based on considerations of benefits and sacrifices.
8 K. G. BOAKYE ET AL.
Through this empirical study, the research results help man-
ufacturers of technology products (smartphones) to provide
innovative features consumers consider to be valuable. To
satisfy the utilitarian needs of consumers, managers must
provide features that help consumers to enjoy their experience
when interacting with the technology product.
Conclusion, limitation, and future extension
Delivering value to consumers while facilitating their contin-
ued usage of technology products is a major concern for firms
in todays consumer electronic markets. This study examined
how customer experience creates value to enhance the con-
sumer decision of continuance intention. Drawing on custo-
mer value theory and customer experience studies, the
findings of our empirical study suggest that customer experi-
ence in terms of PEOU and usefulness has a positive associa-
tion with consumer value (i.e., utilitarian value). With value
derived, consumers are satisfied and increase their continu-
ance intention to use the technology product. In addition,
price impacts the relationship between utilitarian value and
customer satisfaction but not with hedonic value.
A major limitation of this study is related to our sample,
which is a convenient sample of college students. Though the
sample could affect the generalizability of this study, we antici-
pate that other research will confirm these results because a
large part of our population using smartphone technology is the
younger generation. Second, we conducted a cross-sectional
study. However, since continuance intention is dynamic; thus,
a longitudinal study may provide more insights on user con-
tinuance intention. Third, this study is conducted in a devel-
oped economy and westernized culture where technology is far
more advanced. Further studies on the research model and its
variants should be conducted in other developing economies
and cultures where there is an increasing prevalence of mobile
technology and smart phones. Such studies may examine the
impact and role of culture on smartphone continuance inten-
tion and mobile technologys socioeconomic development and
infrastructural contribution to the economy. Finally, we call on
researchers to embrace and include social value, as one of the
dimensions of value consumption, in value-based research
models as is been done in the marketing discipline [62].
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10 K. G. BOAKYE ET AL.

Appendix: Measurement instrument

Variable Item
Perceived ease of use PEOU1* Interacting with my smart phone is often frustrating
PEOU2 I find it easy to get my smart phone to do what I want it to do
PEOU3* My smart phone is rigid and inflexible to interact with
PEOU4 Overall, I find my smart phone easy to use
Perceived usefulness PU1 Overall, I find my smart phone useful
PU2 I find my smart phone useful in my daily life
PU3 My smart phone helps me accomplish things more quickly
PU4 My smart phone increases my daily productivity
PU5 My smart phone helps me perform many things more conveniently
Utilitarian value UTV1 My smart phone is dependable
UTV2 My smart phone is durable
UTV3 My smart phone is reliable
Hedonic value HVA1 My smart phone is attractive
HVA2 My smart phone is impeccable
HVA3 My smart phone is an elegant product
Consumer satisfaction CSAT1 I am satisfied with the web platform provided by my smart phone
CSAT2 I am satisfied with the usage of my smart phones web platform anywhere
CSAT3 I am satisfied with the ability to use my smart phones web platform anytime
CSAT4 I am satisfied with the experience of my smart phones web platform
CSAT5 Overall, I am satisfied with my smart phones web platform
Continuance intention CI1 I intend to continue using my smart phone in the future
CI2 I will always try to use my smart phone in my daily life
CI3 I will keep using my smart phone as regularly as I do now
*Reverse coded.

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