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

Publication: Journal of Advertising Research

Publication Date: 01-MAR-99

Author: KORGAONKAR, PRADEEP K. ; WOLIN, LORI D.
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COPYRIGHT 1999 Cambridge University Press

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.

Level 3: The purchases made from a Web business and, if purchases were made, the approximate number of times purchase orders were placed on the Web in the past 12 months.

In order to understand the motivations and the concerns of Web users, we reviewed the past published literature on Web usage as well as the usage of other mass media such as television, radio, cable television, and newspaper. Additionally, we conducted six focus groups with users of the Web to get a deeper understanding of the topic. Proceeding with the focus group studies, we developed a survey of the Web to validate the focus group findings and to test specific research hypotheses. In the next section we review the past literature which, in conjunction with the focus groups, guides us in developing the study's hypotheses.

LITERATURE REVIEW

Although it is clear that using the Web is an important activity for many people, there is less consensus regarding their reasons for using it. As the Web has grown, the reasons for its use, as well as concerns related to its use, have also proliferated.

The Web was founded for government and educational use, so it's no surprise that its early adopters were students, professors, and scientists. Given the educational emphasis in its early years, commercial activity was originally frowned upon (Strangelove, 1993). Today, a great variety of people have found that they could use the Web for reasons beyond educational information retrieval. It reflects the fact that the Web users of today are very diverse and not limited to the professors, students, and scientists of the early days. Interestingly, the most recent Georgia Tech Graphic, Visualization, and Usability Center World Wide Web Survey from April 1998 states that the general demographics of the Web's user population moved closer to the characteristics of the general population for the first time (GVU, 1998).

In order to get a better understanding of possible reasons and concerns of the Web users, we examined the past published literature on why people use the mass media and the gratifications derived from media use. Uses and gratifications have been elaborated extensively by several researchers (e.g., Katz, Blumer, and Gurevitch, 1974; Rosengren, Wenner, and Palmgreen, 1985; McGuire, 1974). For example, Mendelson's (1964) study of radio listeners suggested several types of gratifications including forming companionship, counteracting boredom, and acquiring information. Berelson's (1959) study of newspapers suggested many motives such as the need for information, social prestige, social contact, and respite. Rubin's (1983) study of television gratifications led to several typologies including relaxation, habit, entertainment, information, and escape.

Contemporary researchers have applied the gratifications concept to the study of new technologies. Shaver (1983) conducted focus group interviews and found two gratifications related to cable television. They were "variety" and "control over viewing." The studies (Phillips, 1982; Waterman, 1984; Levy and Fink, 1984) on video cassettes suggested gratifications of choice, time, and mobility. Rafaeli (1986) found that users of electronic bulletin boards felt "recreation, diversion, and entertainment" as the principal motivations for use followed by "communications" and "learning what others think." In recent years, it has also been used to examine the audience experience associated with Web sites (Eighmey and McCord, 1998; Mukherji, Mukherji, and Nicovich, 1998). Thus, the user gratification research has been quite fruitful in understanding consumers' motivations and concerns for using various media. Uses and gratifications theory rests on several basic assumptions, which emphasize the underlying belief that th e audience is actively involved in media usage. The interactive element of the Web requires a significant consumer involvement. For example, a study conducted by Saatchi & Saatchi (1996) reveals that the typical Web user is alert, absorbed, and enjoying the surfing experience. As a result, the application of uses and gratification theory to improve our understanding of Web usage seems appropriate. Thus, based on the past research, we hypothesize that motivations and concerns of Web users will be varied and correlate significantly with the usage of the Web.

We expect the usage of the Web to also vary based on the demographics, i.e., the characteristics of the audience. Each of the major media has unique capabilities and unique audience characteristics. For example, middle income, high-school-educated viewers and their families are the heaviest viewers of television (Bov'ee and Arens, 1996). Additionally, older women view television the most and teenage females the least. In the context of the Web, measuring precisely who is using it is still difficult to establish. The national research companies define a Web user differently, and the Web continues to grow in its popularity. Thus, companies such as Nielsen Media Research, Cyber Dialogue, Relevant Knowledge, and Media Metrix provide different estimates.

Despite these differences, Table 1 suggests that...

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