Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
net/publication/220385075
CITATIONS READS
35 1,217
3 authors:
Norma Sutcliffe
DePaul University
29 PUBLICATIONS 207 CITATIONS
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
All content following this page was uploaded by Yun Wan on 23 September 2014.
Yun Wan
University of Houston-Victoria
Phone: 281-275-8807
Fax: 281-275-3361
Email: wany@uhv.edu
Makoto Nakayama
DePaul University
Email: MNakayama@cti.depaul.edu
Norma Sutcliffe
DePaul University
Email: NSutcliffe@cdm.depaul.edu
Abstract
This study explores how age and Web shopping influence the SEC ratings of
product and services in online shopping. Using the survey data collected from
549 consumers, we investigated how they perceive the uncertainty of product
quality on six search, experience and credence goods. The ANOVA results show
that age and the Web shopping experience of consumers are significant factors. A
generation gap is identified for all but one experience good. Web shopping
experience is not a significant factor for search goods but is for experience and
credence goods. There is an interaction effect between age and Web shopping
experience for one credence good. Implications of these results are discussed.
Keywords
Online shopping, generation gap, quality perceptions, search goods, experience
goods, credence goods
1
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
INTRODUCTION
Conventional wisdom is that teens and young adults have advantages in online
shopping because they are quick in learning and adapting to the new online
shopping environment. Older generation probably do not shop online as much
because they are less familiar and slower in adapting the new environment. Thus,
the older generations shy away from online shopping more than the younger
generations.
But, several recent surveys indicate that this may not be the case. For example,
according to a survey by Pew Research [1], though older generations use the
Internet less for socializing and entertainment, they do use it more as a tool for
information searches, emailing, and buying products. In addition, now both
young and old equally pursue video downloads, online travel reservations, and
work-related research. Another survey conducted by University of Southern
California found that older Americans have equal or even more enthusiasm
towards Web 2.0 than their younger, more tech-savvy counterparts [2]. The same
survey indicates that while instant messaging and video downloading still remain
more popular with the younger generations, older Americans check the Internet
more frequently for news. The older generations are logging onto online
communities, researching purchases, becoming socially active and playing games
in increasing numbers [2]. Also a survey by a UK-based media company in
December 2008 found that there were no significant differences between younger
and older generations in terms of their general shopping behavior and concerns
about online fraud [3].
The older generation might be slow in learning new technologies and in a
disadvantageous position in terms of keeping up with the trends on Web when
compared to their younger counterparts. However, on a second thought, older
generations do have more shopping experience, even though most of such
experiences are rooted in the traditional environment. Such experiences may give
2
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
3
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
PREVIOUS STUDIES
some of them could be evaluated prior to purchase, others after purchase, while
still others could not be evaluated even after the long term use. In other words,
any goods could have search, experience, and credence attributes simultaneously.
It depends on the category of those attributes we are most concern with about a
product or service that we classify this product or service into a specific SEC
category. Though the generally accepted SEC category for a particular product
indicates the most concerned attributes by the majority, it is possible that for a
specific individual, such attributes are less important than some attributes in other
SEC categories. This becomes the first source of differentiation in perception.
Secondly, the importance of a product or service to us could be largely deducted
from the utility it brings to us, which is objective in most cases, especially for
commodities. However, the ability of inference of some attributes information
from other attributes information varies among individuals and largely depending
on prior shopping experience.
For example, when a computer geek thinks a Dell laptop is a search product, he
really means that based on his prior experience of using laptop, he can infer the
quality of experience and credence attributes of the laptop by observing its search
attributes. He can check the smoothness of program launch, listen the sound of
hard disk and CPU fan, observe the screen display quality, and touch the keyboard
to infer those experience or credence attributes like the overall integration
soundness and efficiency of heat dissipation. The latter may greatly influence the
usage life span of a laptop, which is largely a credence attribute. Since a rookie
user of laptop does not have such experience, he or she may either regard it as an
experience product or even a credence product.
Above analysis illustrate an importance aspect of SEC framework that we can use
to explore our research question: since the prior experience of a consumer may
influence its evaluation of a product or service, we can detect the age impact on
online shopping from the SEC rating of same product or services by different age
groups. Next, we explore this in details.
5
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
6
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
mobile equipment as a shopping channel [13]. Gender and social class are not
significant factors for mobile commerce adoption.
Web shopping experience, including using various Web-based decision support
tools to conduct the searching, comparing, and analyzing products and services in
the online environment plays an important role in the perception and evaluation of
goods on the Web. Though some studies [14, 15] assumed that younger people are
“more Web-literate than older age groups” [14], one research found that young
consumers with more Web shopping experience have a more positive attitude
towards Web shopping than those without it [16]. The study implies that Web
shopping experience begets a more positive stance towards Web shopping
regardless of age. Another research [13] indicates that the Web shopping
experience has a positive influence on adopting m-commerce, which indirectly
indicated this.
In summary, in the online environment, we identify following factors may
influence online shopper’s SEC ratings. They are age, gender, Web shopping
experiences, Web search experience, and prior purchase experience for the same
goods. Next, we develop hypothesis to test the validity of the impact.
HYPOTHESIS
7
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
H2: Gender has no significant influence on the SEC classification of the same
goods by online shoppers.
Since online shopping is a relatively new shopping mode and is still less than 15%
of the U.S. retailing market, we expect that the extent to which an online shopper
evaluates goods online is highly influenced by that shopper’s Web purchasing
experience and online search skills. A Web savvy shopper may rate credence
goods more like experience goods and experience goods more like a search goods
in the online environment.
H3: Online Shoppers assess the SEC classification of the same goods differently
based on their level of Web shopping experience and those shoppers who have
more Web shopping experience tend to rate the same goods as less credence than
those with less Web shopping experience.
Since the evaluation of product or service in online environment also depends on
the search and process of information from the Web, the search engine experience
of an online shopper may influence his or her SEC rating for the product or
service. If an online shopper is familiar with using search engine to find product
or service quality information, he or she may tend to evaluate such product or
service more towards search goods direction compares with those less familiar
with using search engine, when all other conditions being the same. Thus, we
have hypothesis 4:
H4: Shoppers assess the SEC classification of the same goods differently based on
their level of online search engine experience and those shoppers who have more
search engine experience tend to rate the same goods as less credence than those
with less search engine experience.
In addition to general shopping experience accumulated with age, when someone
has prior purchase experience of a particular product or service, he or she may feel
less uncertain about this product or service in later purchase and such confidence
may be accumulated with each additional purchase of the same product or service.
Thus, one may change their future perception of this product or service from more
credence to more experience or from more experience to more search category.
This experience accumulation can come from either online or Main Street prior
purchases experience. Thus we have hypothesis 5:
H5: Shoppers assess the SEC classification of the same goods differently based on
whether or not they have prior purchasing experience of the goods and those
8
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
shoppers who have prior purchase experience of the goods tend to rate the same
goods as less credence than those do not have.
Now we have explained all our hypotheses. In the next section, we explain the
design of our experiment to verify these hypotheses.
RESEARCH DESIGN
Since the most direct method of obtaining SEC rating of a product or service is
asking the shopper to rate it [17-19], we use similar survey-based questionnaires
by asking subjects for their SEC ratings of a pre-selected set of goods.
The selection of the set of candidate goods is a critical step in this research. To
avoid reinventing the wheel, we conducted a comprehensive review of previous
literature to identify candidate goods that have been repeatedly identified in the
same SEC category by at least two prior literatures though all contexts of such
ratings are assumed in the traditional shopping environment. As a result, we got a
relatively long list of more than ten products and services. Then we found the
necessity to use common goods whose purchases are relatively neutral to age,
gender, income and ethnic groups. This leads to six goods as representative SEC
goods, two in each SEC category. They are:
Search goods include PCs and bestselling books [7, 18, 20, 21].
Experience goods include cell phones and cars [4, 18, 19].
Credence goods include vitamins and auto insurance [18, 22, 23].
We created three scenarios for examining the influence of shopping contexts. In
the first scenario, shoppers can only shop online for the above six items (“Web
Only”). In the second scenario, they can only shop the six items in traditional
environment and cannot use the Web at all (“No Web”). In the third scenario,
consumers can shop around these six items by using any means – whether using
the Web or not (“No Restriction”).
In each scenario, there are two survey sections. The first section collected
subject’s age, gender, Web shopping experience, and web information search
experience.
In the second section, respondents identified the SEC category for the six selected
items. We used the same survey instrument as Iacobucci [19] and asked
respondents to rate items in their respective SEC category by using a 7-point
Likert scale on a single item construct. That is, we asked the respondent to
9
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
We first calculated the mean SEC ratings for each items and the summary is listed
in Table 1.The overall mean is calculated based on all cases. The subsequent three
set of means are calculated based on three scenarios as indicated in research
design.
Overall Web Only No Web No Restriction
Std. Std. Std. Std.
Mean Mean Mean Mean
Dev. Dev. Dev. Dev.
PC 1.90 1.26 1.98 1.18 1.77 1.27 1.93 1.34
Book 2.08 1.30 2.04 1.28 2.12 1.33 2.10 1.29
Cell Phone 2.21 1.30 2.19 1.27 2.20 1.30 2.25 1.34
Car 2.37 1.46 2.25 1.38 2.52 1.53 2.37 1.46
Vitamin 2.69 1.60 2.74 1.64 2.68 1.61 2.64 1.57
Auto
2.28 1.51 2.20 1.48 2.30 1.49 2.36 1.56
Insurance
10
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
Table 1: Summary statistics for SEC rating means
As indicated in the pattern, the overall order of SEC ratings of these six items is in
accordance with the ratings collected from previous literatures in traditional
shopping environment. That is, PC and Book as search goods have less SEC
ratings than experience goods such as cell phone and cars. And the latter two
items have less SEC ratings than vitamin, the credence goods. The only exception
is auto insurance. Though considered as credence goods and being much difficult
to evaluate than search and experience goods in previous literature, in this study,
it was considered as about the same as experience goods such as cell phone and
cars. All these are findings are easily identified in Figure 1.
11
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
12
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
and bestselling books). In the experience goods category, we find that, for cell
phones, shoppers with less Web shopping experience generally give higher SEC
ratings. There is a statistically significant difference between the shoppers with
the least Web shopping experience and those with the most Web shopping
experience. For cars, similar results are observed. The shoppers with the most
Web shopping experience have statistically lower SEC ratings than the shoppers
with the modest Web shopping experience. For credence goods like vitamins and
auto insurance, the shoppers with the most Web shopping experience have lower
SEC ratings compared with the shoppers that have less Web shopping experience.
Since both age and Web shopping experience have significant impacts on SEC
ratings, their interaction effect may also influence. It is possible that the SEC
ratings for the same goods are rated differently in their SEC category by
consumers with a combination of age and Web shopping experience. Specifically,
older generation with more Web shopping experience rate credence, experience,
and search goods more towards experience and search goods compared with other
1
Details could be found via http://www.bls.gov/cex/2007/Standard/age.pdf
14
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
combinations. Through our analysis, we found this is supported for search and
credence goods, but mixed for experience goods. Here are details:
Age impacts the SEC ratings only for search goods. For experience goods, car’s
SEC ratings are affected by age and Web shopping experience. However, cell
phone’s SEC ratings are affected only by Web shopping experience. Both age
and Web shopping experience impact the SEC ratings of credence goods. The
summary of ANOVA with post-hoc tests are as follows (Table 2).
Table 3: SEC ratings by age group, Web shopping experience and their interactions
IMPLICATIONS
15
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
evaluate products and services, their relatively rich Web shopping experience may
compensate this limitation.
Second, even controlling for Web shopping experience, the age gap exists
regarding how uncertain consumers feel about product quality. As indicated
previously, age group 40-49 seems benefit most from their past Web shopping
experience because they have an optimal combination of long enough Main Street
and Web shopping experience. Their Main Street shopping experiences came
from their accumulation through the ages. They are also the first generation that
has both the income and opportunity to be familiar with the Internet and the Web
as well as conducting online shopping. Thus, they have the comparatively best
combined advantage. Their perception of goods, which is reflected in SEC
ratings, is also significantly lower for most item categories in the experiment.
Third, the impact of online shoppers’ age and Web shopping experience are
different on search, experience, and credence goods. The evaluation of credence
goods probably requires both cumulative (long-term) Web shopping experience
and Main Street experience (age) to lower product quality uncertainty. This
indicates age and Web-shopping experience are both very important to reduce the
quality evaluation challenge for online shoppers. The SEC ratings of search
goods, on the other hand, are more sensitive to age.
It is a bit surprising to know that the SEC ratings are not affected by prior
purchase experience for a specific product or service. This could be the benefit of
easy access of product or service review information on the Web – since an
individual could always depend on others’ experience retried by electronic
decision aids like comparison-shopping agents.
CONCLUSION
The generation gap exists in many shopping scenarios. This research explored the
age gap in the perception of goods in search, experience, and credence goods, or
the SEC framework, specifically for the online shopping environment. We find
that age and Web shopping experience, and in some cases, their interaction, have
significant influence on online shoppers’ perception of search, experience and
credence goods. Even controlling Web shopping experience, we found the effect
of generation gap on how consumers feel about product quality. Web shopping
experience and senior age can reduce the uncertainty towards credence goods
16
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
while the perception of search goods are only sensitive to age. We believe these
findings will have important implications for future research on the SEC
framework in the online environment.
REFERENCES
17
To be published on Information Systems and eBusiness Management
DOI: 10.1007/s10257-010-0156-y
18