A Multivariate Analysis of Web Usage.(Statistical Data Included)

Applying the uses and gratification theory to improve the understanding of Web usage, the authors explore Web users' motivations and concerns. These motivations and concerns, as well as demographic factors, were studied in three usage contexts: (1) the number of hours per day spent on the Web, (2) the percentage of time spent for business versus personal purposes, and (3) the purchases made from a Web business and, if purchases were made, the approximate number of times purchasers placed orders on the Web. Multivariate factor analysis suggests the presence of seven motivations and concerns regarding Web use. Additionally, the results suggest that these seven factors, along with age, income, gender, and education levels, are significantly correlated with the three usage contexts.

AS A BUSINESS TOOL, the World Wide Web, or the multimedia interactive component of the Internet, is fast becoming as common as the telephone. An estimated 55 million people surf the Web (Green, Himelstein, and Judge, 1998), and on-line traffic has been doubling every 100 days (Ingersoll, 1998). Much like telephone technology changed the way people did business in the past, the Web is dramatically changing the way people do business today. No other Internet feature offers as much versatility as the Web. The Web's technology allows businesses to use it for several purposes: as an information retrieval source, as a sales tool, as a distribution channel, and as a customer support tool (Sandberg, 1998; Peterson, Balasubramanian, and Bronnenberg, 1997). Not surprisingly, many studies indicate that the number of consumers clicking on the Web is on the increase (e.g., Hagel and Armstrong, 1997). Paradoxically, the studies suggesting disappointing corporate experiences with the Web also continue to increase (e.g., Wol ff, 1998). For many companies, the commercial experience with the Web has been disappointing. Even companies known for their media innovation are perplexed by this new medium; Procter and Gamble recently conducted a pivotal seminar with key Internet executives to discuss the underperforming Web. Topics included measurement standards, Web banner formats, consumer acceptance of on-line advertising, and making on-line advertising easier to purchase (Elliott, 1998). According to e-land, an Internet research company, in all of 1997, Web users spent only $1.5 billion buying products and services, and 1998 on-line spending projections are at $3.7 billion (e-land, 1998). In perspective, these amounts are a fraction of the $2.5 trillion spent shopping in 1997. Not surprisingly, many marketing executives are skeptical about the claims that the Web is the global marketplace of the future. We believe, in this stage of promises and doubts, the key to realizing the underutilized potential of the Web rests with understandin g the needs of the Web user.

Sellers once had an advantage because only they held the knowledge that gave them power with reference to a product or service they sold; in the past, consumers had to work hard to become well informed about products and services. However, today's Web search software is yielding information that puts consumers on the same level with the professional (Martin, 1996). As a result, it is clear to many Internet experts that to succeed in this environment, we need a better understanding of the Web user. For example, Hagel and Armstrong (1997) state, "To become profitable, the organizers of the virtual community must understand and address this newly empowered customer's needs." A study by the Gartner Group (1995) found that 90 percent of Web sites were developed without asking existing customers what they wanted. In their rush to have an Internet presence, many firms that ordinarily employ sound research practices abandon their logic and develop ineffective Web sites (Nadilo, 1998).

Curiously, little is actually known about how and why consumers are using this technology to interact with businesses and other consumers. For example, are they using the Web only to acquire information? Are they also using it to socialize? What are their concerns or fears? Finally, does all of this information have any relationship or bearing on how they use the Web? It seems that researchers have studied the issues of Web advertising in more detail (e.g., Maddox, Mehta, and Daubek, 1997; McDonald, 1997) than the fundamental issues related to the use of the Web as a medium.

Although some research exists indicating the demographic profile of the Web user, little is known about the consumers' reasons, as well as concerns, as they relate to Web usage. We studied these issues in the context of different levels or types of Web usage:

Level 1: The number of hours per day spent on the Web.

Level 2: The percentage of time spent for business purposes versus personal purposes.