International Journal of Information Management 33 (2013) 199–208 Contents lists available at SciVerse ScienceDirect International Journal of Information Management journal homepage: www.elsevier.com/locate/ijinfomgt What drives purchase intention in the context of online content services? The moderating role of ethical self-efficacy for online piracy Yi-Shun Wang a,∗ , Ching-Hsuan Yeh a , Yi-Wen Liao b a b Department of Information Management, National Changhua University of Education, No. 2, Shi-Da Road, Changhua City 500, Taiwan Department of Information Management, Chia Nan University of Pharmacy and Science, No. 60, Sec. 1, Erren Road, Rende District, Tainan City 71710, Taiwan a r t i c l e i n f o Article history: Available online 2 November 2012 Keywords: Online content services Perceived value Value-based adoption model Purchase intention Ethical self-efficacy for online piracy a b s t r a c t With the proliferation of online content service industry, understanding the factors affecting consumer intention to purchase online content services has become an important issue for academics and practitioners. While previous research has suggested that consumers’ perceived value and moral judgment are two main factors influencing behavioral intention to purchase online content services, few studies have explored what drives perceived value and if customers’ ethical self-efficacy will moderate the effect of perceived value on purchase intention. Thus, based on the value-based adoption model and previous literature, this study explores the antecedents of perceived value and the moderating effect of ethical self-efficacy for online piracy (ESEOP) on the relationship between perceived value and purchase intention in the context of online content services. Data collected from 124 respondents in Taiwan are tested against the research model using the partial least squares (PLS) approach. The results indicate that perceived enjoyment, perceived usefulness, perceived fee, and ESEOP have a significant influence on perceived value and that ESEOP can enhance the positive effect of perceived value on purchase intention. The findings of this study provide several important theoretical and practical implications for consumer online content purchase behaviors. © 2012 Elsevier Ltd. All rights reserved. 1. Introduction With the development of the Internet, online content service industries have recently grown rapidly in the form of online game, e-book, e-learning, e-music, Internet broadcasting, and video on demand (VOD) (Joo & Sohn, 2008). However, when compared with the rapid growth of the online content services markets, especially online music services in the USA and Western Europe, no such success has emerged in Asia (Chu & Lu, 2007). Previous studies have suggested that Asians are reluctant to pay for the download of online contents, particularly in Great China Region (i.e., Mainland China, and Hong Kong) (Chen, Shang, & Lin, 2008; Chu & Lu, 2007; Joo & Sohn, 2008; Lu & Hsiao, 2010). Thus, in order for the online content industry to succeed, it is essential to understand why consumers are willing to pay for online/digital content services or not. That is, investigating the factors affecting consumer intention to purchase online content services has been an important issue for academics and practitioners. Several previous studies have explored the factors affecting online consumers’ behavior (e.g., Doong, Wang, & Foxall, 2011; ∗ Corresponding author. Tel.: +886 4 7232105x7331. E-mail addresses: [email protected] (Y.-S. Wang), [email protected] (C.-H. Yeh), [email protected] (Y.-W. Liao). 0268-4012/$ – see front matter © 2012 Elsevier Ltd. All rights reserved. http://dx.doi.org/10.1016/j.ijinfomgt.2012.09.004 Hong & Cho, 2011; Kuo & Wu, 2012; Liu, Guo, & Lee, 2011; Song, Baker, Lee, & Wetherbe, 2012; Udo, Bagchi, & Kirs, 2010). Some studies have also suggested that customer-perceived value is a critical factor affecting behavioral intention to purchase or repurchase online services in the context of electronic/mobile commerce (Chen et al., 2008; Chu & Lu, 2007; Kim, Chan, & Gupta, 2007; Lin & Wang, 2006; Lu & Hsiao, 2010; Wang, 2008). Perceived value is frequently conceptualized as involving a consumer’s assessment of the ratio of perceived benefits to perceived costs (Monroe, 1990; Zeithaml, 1988). However, few studies have investigated the antecedents of perceived value from the perspective of perceived benefits and perceived costs in the context of online content services (e.g., Chen et al., 2008; Chu & Lu, 2007; Lu & Hsiao, 2010). Thus, there is a need for research to explore what factors drive consumers’ perceived value of online content services in the cost–benefit framework. In addition to perceived value, previous studies have also suggested that moral judgment or ethical self-efficacy is another influential factor of digital material piracy (Chen et al., 2008; Gopal, Sanders, Bhattacharjee, Agrawal, & Wager, 2004; Kuo & Hsu, 2001; Moores & Chang, 2006). Many researchers have found that more strongly held beliefs that piracy is wrong, unethical, or immoral lead to a lower likelihood of intended piracy behavior (Miyazaki, Rodriguez, & Langenderfer, 2009). While perceived value is a critical influential factor of consumer intention to purchase online contents, considering that illegal online music and video file 200 Y.-S. Wang et al. / International Journal of Information Management 33 (2013) 199–208 download are still rampant in most of the Asian region, a question remains; that is, are consumers willing to purchase high perceived value online contents. Furthermore, although some researchers found a direct relationship between moral judgment and ethical behavior (Cronan & Al-Rafee, 2008; Pan & Sparks, 2012; Yoon, 2011a), Chen et al. (2008) found that the degree of morality has not a significant influence on behavioral intention to download unauthorized music files, but that perceived value of downloading free music files influences behavioral intention to download unauthorized music files more strongly for the low morality group than for the high morality group. These results imply that consumers’ moral beliefs or self-efficacy toward online piracy may play a moderating role in the effect of perceived value on online content purchase intentions. Thus, the relationship between perceived value, purchase intention, and piracy ethics still needs to be further addressed in the context of online content services. Therefore, the main purpose of this study is to (1) investigate the antecedents of perceived value from the cost–benefit framework, and (2) explore the moderating effect of consumers’ ethical self-efficacy for online piracy on the relationship between perceived value and purchase intention in the context of online content services. This paper is structured as follows. First, this study reviews the conceptualization and antecedents of perceived value and discusses the concept of online piracy ethics. Second, based on previous literature, a research model and a comprehensive set of hypotheses are proposed. Next, the methods, measures, and results of this study are then presented. Finally, the results are discussed in terms of their implications for research and managerial activity. 2. Theoretical background 2.1. Conceptualization and antecedents of perceived value As noted earlier, several previous studies have suggested that perceived value is a crucial factor that influences user intention to use/purchase online service in the context of electronic/mobile commerce (e.g., Chen et al., 2008; Chu & Lu, 2007; Kim et al., 2007; Lin & Wang, 2006; Lu & Hsiao, 2010; Wang, 2008). Perceived value is frequently conceptualized as involving a consumer’s assessment of the ratio of perceived quality and perceived sacrifice (Monroe, 1990; Zeithaml, 1988). Bolton and Drew (1991) suggested that perceived value is a richer measure of customers’ overall evaluation of a service than perceived service quality. According to Zeithaml (1988), perceived sacrifice are influenced by both perceived monetary price and perceived nonmonetary price. Similarly, Parasuraman and Grewal (2000) contend that perceived value is a function of a ‘get’ component – i.e., the benefits a buyer derives from a seller’s offering – and a ‘give’ component – i.e., the buyer’s monetary and nonmonetary costs of acquiring the offering (Zeithaml, 1988). Traditionally, technology acceptance model (TAM) is one of the most influential models in the research area of user acceptance of information systems (IS) (Davis, 1989; Davis, Bagozzi, & Warshaw, 1989), which posits that user acceptance can be explained by two beliefs: perceived usefulness and perceived ease of use. IS researchers have investigated and replicated the TAM, and agreed that it is valid in predicting an individual’s acceptance of various corporate IT (Adams, Nelson, & Todd, 1992; Chin & Todd, 1995; Segars & Grover, 1993). However, as Wang (2008) noted, in the context of electronic/mobile commerce, many users may abandon or be reluctant to use a for-fee information service even if it is useful for them. This phenomenon may decrease the power of TAM in explaining and predicting user acceptance of for-fee information and content services, which have become very popular in the context of electronic/mobile commerce, because TAM’s perceived usefulness only taps the perceived benefit component, but it omits the perceived monetary cost component in user acceptance of information services (Wang, 2008). Consequently, Wang (2008) proposed a revised TAM (i.e., a value-based TAM), which replaces perceived usefulness with perceived value, and suggested that perceived value is more dominant than perceived usefulness in explaining the behavioral intention to use for-fee information and content services. This also implies that for-fee online content services appear to be accepted less because of their perceived usefulness than because of their perceived value. Similarly, as Kim et al. (2007) contend, in an organizational context, the cost of mandatory adoption and usage is borne by the organization; in contrast, in an online service context, the cost of voluntary adoption and usage is borne by the individuals. Thus, the adopters of online services play the dual roles of IT user and service consumer, and they would concern about the cost and benefit of using the online services when deciding whether or not to adopt the services. Using the theory of consumer choice and decision making from the field of economics and marketing research, Kim et al. (2007) proposed a value-based adoption model (VAM) to explain customers’ mobile Internet service adoption from the value maximization perspective. Their empirical findings also indicate that perceived value of mobile Internet service is a principal determinant of adoption intention, and that two cost beliefs (i.e., perceived fee and technicality) and two benefit beliefs (i.e., usefulness and enjoyment) affect adoption intention through the mediation of perceived value. Meanwhile, Chu and Lu (2007) also empirically investigated the factors influencing online music purchase intention based on the value–intention framework. Similarly, they found that perceived value of online music has a positive influence on purchaser intention to buy online music and that two beneficial factors (i.e., perceived usefulness and perceived playfulness) and one sacrificing factor (i.e., perceived price) are determinants of perceived value. Thus, VAM’s benefit-sacrifice framework proposed by previous researchers (Chu & Lu, 2007; Kim et al., 2007; Wang, 2008) can be used to explain and predict consumer behaviors of purchasing online content services. While several typologies of value are proposed (e.g., Holbrook, 1999; Sheth, Newman, & Gross, 1991), they are comprehensive in explaining the benefits customers get from consumption but they fail to take into account the costs associated with consumption (Kim et al., 2007). Thus, this study adopts Zeithaml’s (1988) definition of perceived value which is the most widely accepted by previous consumer behavior research. According to Zeithaml (1988), perceived value of online content services in this study is defined as a consumer’s overall perception of online content service based on the considerations of its benefits and sacrifices needed to acquire and/or use it. Thus, perceived value in the VAM is equivalent to the framework of cost–benefit analysis. Further, the VAM could not only capture the utilitarian and hedonic benefit components (i.e., perceived usefulness and perceived enjoyment), but it also could take into account the monetary and nonmonetary sacrifice components (i.e., perceived fee and perceived technicality). Thus, this study uses the VAM to develop a comprehensive model for explaining and predicting consumer intention to purchase online content services by integrating the concepts of perceived value and online piracy ethics. The following section elaborates the conceptualization of online piracy ethics and its potential role in moderating the effect of perceived value on online content purchase intention. 2.2. Online piracy ethics To achieve a profitable online content service, both perceived value and consumers’ piracy behavior should be seriously contemplated since the former contributes to consumers’ purchase intention and the latter results in firms’ earnings downturn. Based Y.-S. Wang et al. / International Journal of Information Management 33 (2013) 199–208 on the work of Prasad and Mahajan (2003), piracy refers to the duplication, purchase, and distribution of unauthorized products including functional software and digital entertainment contents. A multitude of studies have claimed that piracy is a pervasive phenomenon in Internet society on account of the ease of access, low reproduction cost, and the dearth of vigilance and empathy resulting from the human-to-machine interface (Peitz & Waelbroeck, 2006; Shanahan & Hyman, 2010). Compared with other online misconducts such as defamation or virus dissemination, piracy is a typical form which strongly relates to consumption (Huang, 2005; Kuo & Hsu, 2001). The negative effect of piracy on consumption is intuitively recognized, and has been empirically verified and observed in practice (Sandulli, 2007). The rampant of piracy will lead to a tremendous decrease in product sales, and erode the rewards of producers and their corresponding affiliations (Hennig-Thurau, Henning, & Sattler, 2007). Although piracy is likely to contribute to faster product diffusion, greater brand/artist familiarity, more opportunity for product trial, and the habitualization of consumer’s usage, which may in turn foster the product sales, this ‘potential’ benefit is uncertain and lacks of empirical evidence (Coyle, Gould, Gupta, & Gupta, 2009). For example, in the music industry, the digitalization of music really impacts consumers’ music consumption behavior and invokes the prevalence of music piracy (Peitz & Waelbroeck, 2006; Warr & Goode, 2011). It is believed that piracy is detrimental to the development of online content industry from a long term perspective. Thus, there is a need for research to better understand the role that piracy ethics plays in consumers’ purchasing of online content. Researchers have paid much effort to identify the factors influencing consumers’ digital material piracy and to draw effective deterrent strategies (Chen et al., 2008; Gopal et al., 2004; Huang, 2005; Levin, Dato-On, & Rhee, 2004; Moores & Chang, 2006; Plowman & Goode, 2009). Of these influential factors, ethics/morality has been widely explored and suggested to be negatively related to behavioral intention to pirate (e.g., Chen et al., 2008; Coyle et al., 2009). Marshall (1999) defines ethics as guidelines to influence human social behaviors in a manner intended to protect and fulfill the rights of individuals in a society. Previous research has suggested that stronger ethical concerns regarding piracy are associated with less pirating behaviors (Coyle et al., 2009; Cronan & Al-Rafee, 2008; Levin et al., 2004; Pan & Sparks, 2012; Yoon, 2011b). Unlike mandatory legal system, ethics is the unwritten consensus which is shared by the same group, and steers its members’ acts to conform to the expectation of the group (Green, 1994). Previous research has explored the ethical decision making models, which parsimoniously illustrate consumers’ cognitive activities to deal with ethical dilemma (e.g., Goolsby & Hunt, 1992; Hunt & Vitell, 1986; Rest, 1986; Tan, 2002; Yoon, 2011a). While encountering a situation/issue which is likely to raise an ethical concern, individuals will attempt to identify whether it is ethicsinvolved; once an individual recognizes an event/action to be ethically involved, his/her behavioral intention will be guided and not violate the common moral requirements (Pan & Sparks, 2012). In this vein, ethical judgment or moral obligation has frequently been proposed as a critical predictor of individual ethical intention or behavior (Cronan & Al-Rafee, 2008; Jung, 2009; Moores & Chang, 2006; Pan & Sparks, 2012; Thong & Yap, 1998; Yoon, 2011a, 2011b). However, a review of prior studies shows controversial conclusions about the effect of ethical judgment concerning online piracy on online content purchase behavior. For example, Coyle et al. (2009) found that consumers who consider music piracy to be unethical and illegal will be less likely to engage in music piracy. However, Chen et al. (2008) found that the degree of morality has an insignificant effect on unauthorized music download intention, but that perceived value of downloading free music files influences 201 behavioral intention to download illegal music files more strongly for the low morality group than for the high morality group, implying that moral judgment or belief may play a moderating effect on the relationship between perceived value of using online content and behavioral intention to purchase online content. Considering that ethical judgment or concern has been suggested as a critical factor affecting behavioral intention to pirate digital material (software, music, etc.) (Cronan & Al-Rafee, 2008; Jung, 2009; Levin et al., 2004) and that mix results regarding the effect of ethical judgment on ethical behavior have been found in previous research on digital content usage behavior, this study continues to investigate the role that individual ethical judgment concerning online piracy plays in the VAM. 2.3. Ethical self-efficacy for online piracy Individual difference variables, such as locus of control (internal vs. external) and the Big Five personality traits have been examined to see if individuals with different traits will present distinct reactions to ethical issues (Karim, Zamzuri, & Nor, 2009; Pan & Sparks, 2012). Self-efficacy is also an important individual difference variable which has received increasing attention in the recent research of software piracy ethics (Kuo & Hsu, 2001). Bandura (1986) defined self-efficacy beliefs as “people’s judgments of their capabilities to organize and execute courses of action required to attain designated types of performances” (p. 391). According to the social cognitive theory (SCT), individuals with high self-efficacy – that is, those who believe they can perform well – are more likely to view difficult tasks as something to be mastered rather than something to be avoided. Self-efficacy has also been widely used to predict behavioral intentions in the Internet context (e.g., Hong, Thong, Wong, & Tam, 2001; Luarn & Lin, 2005; Wang, Lin, & Luarn, 2006). However, SCT and self-efficacy have rarely been applied to investigate information ethics decisions (Kuo & Hsu, 2001). Thus, based on the SCT, Kuo and Hsu (2001) developed a 3-dimension, 12-item measure of ethical computer self-efficacy (ECSE) construct concerning software piracy and suggested that this construct can be used to investigate people’s ethical conduct related to computer use. Consistent with the computer self-efficacy measures (Compeau & Higgins, 1995), the ECSE measures considered three relevant dimensions of self-efficacy judgments: magnitude (i.e., task difficulty), strength, and generalizability. Self-efficacy can be seen as perceived behavioral control (PBC) in the theory of planned behavior (TPB) (Kok, deVries, Muddle, & Strecher, 1991; Kuo & Hsu, 2001), which can serve as a determinant of behavioral intention and can be affected by demographics, personality traits, beliefs concerning objects, attitude toward objects, task characteristics, and situational variables (Ajzen, 1989). Kuo and Hsu (2001) also argued that “the stronger the perceived self-regulatory efficacy, the more perseverant people are in their self-controlling efforts and the greater is their success in resisting social pressures to behave in ways that violate their standards” (p. 301). Therefore, based on the aforementioned literature and the ECSE construct presented by Kuo and Hsu (2001), this study attempts to investigate the main and interaction effects of ethical self-efficacy and perceived value on online content purchase intentions by adding the construct of ethical self-efficacy for online piracy (ESEOP), defined as an individual’s propensity of ethical usage of online content, into the VAM. 3. Research model and hypotheses This study attempts to better understand why consumers are willing to purchase online content. To this end, this study uses the VAM mentioned earlier to investigate consumers’ online content consumption behavior in the e-commerce context. However, the 202 Y.-S. Wang et al. / International Journal of Information Management 33 (2013) 199–208 Benefit Perceived Usefulness Ethical Self-efficacy for Online Piracy Perceived Enjoyment Sacrifice Perceived Value Purchase Intention Technicality Perceived Fee Fig. 1. Research model. value–intention relationship in the VAM may not always sustain and may have exceptions. It is still frequently observed in practice that some consumers pirate music even though the value of online music services is recognized. Therefore, this study incorporates the construct of ESEOP into the VAM to concurrently examine the main effect and interaction effect of perceived value and ESEOP on behavioral intention to purchase online content services. The research model used to guide this study is shown in Fig. 1, which suggests that perceived usefulness, perceived enjoyment, technicality, and perceived fee all have a relationship with perceived value, and that ESEOP has a moderating effect on the relationship between perceived value and purchase intention. Based on previous literature, this section conceptualizes the constructs and derives the hypotheses for the research model. 3.1. Perceived benefits In the contemporary consumer-oriented business environment, delivering benefits to consumers is a necessity to trigger their buying. Researchers in the marketing field have devoted much effort to develop a better understanding of the concept of consumer benefits. Previous research has suggested that the shopping experience provides consumers with a combination of utilitarian and hedonic benefits (e.g., Babin & Darden, 1995; Babin, Darden, & Griffin, 1994; Carpenter & Moore, 2009; Chandon, Wansink, & Laurent, 2000; Holbrook, 1994; Jones, Reynolds, & Arnold, 2006; Klein & Ford, 2003). Thus, it is generally agreed to classify customers’ perceived benefits into two fundamental types: utilitarian and hedonic (Childers, Carr, Peck, & Carson, 2001; Diep & Sweeney, 2008; To, Liao, & Lin, 2007). Utilitarian benefit is task-related, cognitive, and extrinsic. Consumers can derive utilitarian benefits from the performance of the product/service which achieves the task requirement. On the contrary, hedonic benefit such as appreciation and entertainment is emotionally and intrinsically evaluated, and is derived from the process of the product/service usage. These two kinds of benefits are applicable not only at the brick-and-mortar shopping context but also at the Internet shopping context (Kim, 2002; Rintamäki, Kanto, Kuusela, & Spence, 2006). In line with the utilitarian–hedonic benefit framework, Kim et al. (2007) suggested that perceived usefulness is an extrinsic and cognitive factor while perceived enjoyment is an intrinsic and affective factor. Similarly, Chu and Lu (2007) also used perceived usefulness and perceived playfulness to represent functional benefit and recreational benefit in the value–intention framework. In this study, perceived usefulness is akin to the marketing concept of product/service quality (Kim et al., 2007), which is the consumer’s evaluation of the online content service performance and can be defined as the extent to which a consumer believes that using an online content service would fulfill his/her certain purpose (Chu & Lu, 2007; Davis, 1989). Perceived enjoyment is the perceived fun or pleasure sourcing from the online content service experience, which is defined as the extent to which the activity of using an online content service is perceived to be enjoyable in its own right, apart from any performance consequences that may be anticipated (Davis, Bagozzi, & Warshaw, 1992). An online content service which highly accomplishes consumers’ task and arouses consumers’ feeling of delight will earn a better consumer value appraisal. Taking online music service as an example, consumers can search and purchase a pop song or a classical music, aged or latest through an online music service at any time from any place rather than visiting physical music stores. Additionally, the customization strategies of online music service providers offer customers with the flexibility to buy a single music, a personalized album, or to subscribe the services. In this vein, online music services are helpful for consumers to achieve their purposes, and thus perceive usefulness is derived. Meanwhile, consumers may also perceive fun and excitement while searching, purchasing and using the desired online music services, and thus perceived enjoyment is derived. Previous studies have suggested that perceived usefulness and perceived enjoyment are instrumental in explaining user adoption of hedonic information systems (e.g., van der Heijden, 2004). Further, both of them have also been found to positively influence perceived value in the context of mobile Internet (Kim et al., 2007). Thus, the following hypotheses are proposed: H1. Perceived usefulness is positively related to perceived value in the context of online content service. H2. Perceived enjoyment is positively related to perceived value in the context of online content service. 3.2. Perceived sacrifice In addition to perceived benefit, consumer’s perceived sacrifice is another antecedent of perceived value. In general, prior Y.-S. Wang et al. / International Journal of Information Management 33 (2013) 199–208 studies classified consumer’s perceived sacrifice into two types: nonmonetary and monetary sacrifice (Zeithaml, 1988). Zeithaml (1988) defined nonmonetary sacrifice as temporal, physical, and psychological cost. Consumers who spend more time and effort on a product/service tend to have a higher perceived nonmonetary sacrifice and then diminish their value perception toward the product/service. Kim et al. (2007) used technicality, defined as users’ perceptions of ease of use, to represent the nonmonetary sacrifice. Similarly, Chu and Lu (2007) employed perceived ease of use to represent the nonmonetary sacrifice. However, technicality/perceived ease of use defined by Kim et al. (2007) and Chu and Lu (2007) is conceptually opposite to the concept of nonmonetary “sacrifice”. Thus, to be consistent with the benefit–sacrifice framework and serve as a sacrifice-related construct in the VAM, technicality in this study is redefined as the extent to which a customer believes that using an online content service would suffer from physical, mental and learning effort (Davis, 1989; Kim et al., 2007), which is conceptually similar to perceived non ease of use. As such, greater technicality of an online content service will increase consumers’ temporal, physical, and psychological loss, and thus negatively contribute to perceived value. Previous research also found that technicality/perceived ease of use has a significant influence on perceived value (Kim et al., 2007). On the other hand, monetary sacrifice refers to a consumer’s financial payment for the online content service. Since customers do not always remember actual product/service prices, previous research usually used the customers’ perception of price or fee to measure customers’ monetary sacrifice (Jacobby & Olson, 1977; Monroe, 1973). Kim et al. (2007) used perceived fee to represent monetary sacrifice in the mobile Internet context while Chu and Lu (2007) employed a similar perceived fee construct to represent monetary sacrifice in the online music setting. According to Kim et al. (2007), perceived fee in this study is defined as the extent to which a customer believes that using an online content service is expensive. It has been suggested that perceived fee/perceived price has a direct influence on perceived value (Chang & Wildt, 1994; Dodds & Monroe, 1985; Kim et al., 2007; Zeithaml, 1988). Previous studies also found that perceived fee/perceived price is negatively related to perceived value (Chang & Wildt, 1994; Chu & Lu, 2007; Kim et al., 2007). Based on the aforementioned reasoning, this study tests the following hypotheses: H3. Technicality is negatively related to perceived value in the context of online content service. H4. Perceived fee is negatively related to perceived value in the context of online content service. 203 H5. Perceived value is positively related to purchase intention in the context of online content service. 3.4. ESEOP As stated earlier, ESEOP refers to an individual’s propensity of ethical usage of online content. Previous research has suggested that stronger ethical concerns regarding piracy are related to less pirating behaviors (Coyle et al., 2009; Cronan & Al-Rafee, 2008; Levin et al., 2004; Pan & Sparks, 2012; Yoon, 2011b), implying that ESEOP may have a positive influence on purchase intention in the context of online content services. Once a consumer with high ethical self-efficacy is in the face of an ethics-related consumption situation, he or she will have the intention to show disciplined conducts to fulfill moral norms, regardless of the moral intensity of that situation is high or low. Prior studies have also found a significant relationship between moral judgment and ethical behavior (e.g., Coyle et al., 2009; Cronan & Al-Rafee, 2008; Jung, 2009; Moores & Chang, 2006; Pan & Sparks, 2012; Yoon, 2011a, 2011b). Thus, it is inferred that customers who have high ESEOP are more likely to purchase online content services than those who have low ESEOP. This study proposes the following hypotheses: H6. ESEOP is positively related to purchase intention in the context of online content service. While prior studies have found the positive relationship between perceived value and purchase intention, this relationship may not always be sustainable for all consumers. As noted earlier, Chen et al. (2008) found that perceived value of downloading free music files influences behavioral intention to download illegal music files more strongly for the low morality group than for the high morality group, implying that an individual’s ethical self-efficacy concerning online piracy may play a moderating effect on the relationship between perceived value and purchase intention in the context of online content services. It is thus inferred that customers who have high ESEOP are more likely have strong perceptions regarding the effect of perceived value on purchase intention than those who have low ESEOP. Specifically, perceived value influences purchase intention more strongly for customers with high ESEOP than for those with low ESEOP. Based on the aforementioned reasoning, this study proposes the following hypothesis: H7. When ESEOP is higher, the positive relationship between perceived value and purchase intention is stronger in the context of online content service. 4. Methods 3.3. Perceived value 4.1. Measures Based on the exchange theory in marketing studies, it is believed that consumer’s perceived value is the prerequisite of purchase intention. As noted earlier, perceived value refers herein to a customer’s overall assessment of the benefits and sacrifices of acquiring and/or using an online content service. Consumers are assumed as economically rational and will pursuit their maximum utility. After a comprehensive trade-off evaluation of the benefits and costs, a consumer may conclude whether a product/service is valuable and take it as the basis for his/her following behavioral decision (Zeithaml, 1988). It has been proposed that perceived value has a positive effect on consumer intention to buy (Dodds, Monroe, & Grewal, 1991; Lu & Hsiao, 2010; Sweeney, Soutar, & Johnson, 1997; Zeithaml, 1988). Several previous studies have also provided empirical evidence for the positive influence of perceived value on purchase intention (Chu & Lu, 2007; Kim et al., 2007; Lu & Hsiao, 2010). Thus, the hypothesis is presented. Selected measurement items must represent the concept about which generalizations are to be made to ensure the content validity of the measurement (Bohmstedt, 1970). Therefore, to ensure content validity, measurement items in this study were mainly adapted from prior studies. Besides, to simplify the validation of our research model, the measures of this study focuses on the online music services. The measures for perceived value were adapted from Kim et al. (2007) and Sirdeshmukh, Singh, and Sabol (2002). The scale for perceived usefulness was modified from Kim et al. (2007) and Chu and Lu (2007), while the scale for perceived enjoyment was adapted from Kim et al. (2007) and Agarwal and Karahanna (2000). The items for measuring technicality were modified from Kim et al. (2007) and Davis (1989). Also, the items used to measure perceived fee were adapted from Kim et al. (2007) and Voss, Parasuraman, and Grewal 204 Y.-S. Wang et al. / International Journal of Information Management 33 (2013) 199–208 (1998). Twelve items for measuring ESEOP were adapted from the scale of ethical self-efficacy for software piracy developed by Kuo and Hsu (2001). Finally, the scale for purchase intention was adapted from Kim et al. (2007) and Davis et al. (1989). Likert scales (ranging from 1 to 7), with anchors ranging from “strongly disagree” to “strongly agree” were used for all construct items, with the exception of those items for measuring ESEOP whose anchors ranged from “not at all confident” to “totally confident.” The survey items were pre-tested by a small number of e-commerce experts and were modified to fit the context of online music services studied. The survey items are listed in Appendix A. In addition, a declaration of anonymity and aggregation analysis is emphasized in the introduction of the questionnaire to increase the response rate and to mitigate the bias effect of social desirability while respondents answer their ethical judgment (Coyle et al., 2009; Gupta, Gould, & Pola, 2004; Shanahan & Hyman, 2010). 4.2. Data collection Data used to test the research model was gathered from an online convenience sample in Taiwan. The online survey questionnaire of this study was established on a survey portal in Taiwan, where the interested online users can connect the portal. Willing respondents were asked to participate in the survey. Respondents then self-administered the questionnaire and were asked to circle the response that best described their level of agreement with the statements. A sample of 124 valid responses was obtained from a variety of respondents with different demographic background. In terms of the respondents, 41.13% were male and 58.87% were female. Approximately, 33.26% of the respondents were aged 20–29 and 89.52% of the respondents had over six years of computer experience. Also, 96.7% of the respondents had attained a degree at the collegiate level or above. Almost all of the respondents (94.94%) had online music use experiences. 4.3. Data analysis The empirical data was analyzed using the partial least squares (PLS) approach, which was employed because it does not require the data to have a multivariate normal distribution and is less demanding in terms of sample size. SmartPLS software was used for the data analysis of this study, which contained two steps. In the first step, all measurement models were examined for their psychometric properties, while the second step focused on testing the research model and hypotheses. The PLS provides a convenient approach for the simultaneous analysis of measurement model, structural model, and interaction effects. 5. Results 5.1. Measurement model Assessment of the measurement model involved evaluations of reliability, convergent validity, and discriminant validity of the construct measures. Reliability was examined using composite reliability. As shown in Table 1, reliability exceeded 0.8 for each construct. Convergent validity of the construct measures was examined using factor loading and average variance extracted (AVE). As shown in Table 1, each item’s factor loading is larger than 0.5 and has a significant t-value, confirming the convergent validity of the construct measures. Additionally, the AVE for each construct exceeded the recommended level of 0.50 (see Table 1), which meant that more than one-half of the variances observed in the items were accounted for by their hypothesized constructs. To assure discriminant validity, the square root of AVE for each construct Table 1 Reliability, AVE and factor loading. Construct/item Composite reliability AVE Purchase intention PI1 PI2 PI3 Perceived value PV1 PV2 PV3 PV4 Perceived usefulness PU1 PU2 PU3 PU4 PU5 PU6 Perceived enjoyment PE1 PE2 PE3 PE4 Perceived fee PF1 PF2 PF3 Technicality TE1 TE2 TE3 TE4 ESEOP ES1 ES2 ES3 ES4 ES5 ES6 ES7 ES8 ES9 ES10 ES11 ES12 0.98 0.94 0.89 Factor loading t-Value 0.96 0.97 0.97 137.15 225.32 163.21 0.65 0.87 0.90 0.63 14.26 66.80 84.83 36.79 0.85 0.92 0.82 0.86 0.88 0.85 46.46 104.89 21.27 34.41 62.03 42.38 0.94 0.96 0.95 0.87 122.19 213.21 188.42 25.93 0.85 0.98 0.95 28.11 339.50 89.97 0.93 0.93 0.92 0.73 103.70 96.89 107.85 14.87 0.87 0.88 0.88 0.82 0.85 0.86 0.69 0.75 0.70 0.76 0.49 0.70 67.25 71.16 59.95 26.15 38.03 53.28 16.27 25.05 16.74 16.34 10.05 16.52 0.67 0.95 0.75 0.96 0.87 0.95 0.86 0.78 0.93 0.95 0.61 should be greater than the correlations between that construct and all other constructs (Fornell & Larcker, 1981). This study compared the correlations between constructs with the square root of AVE of the individual constructs. This analysis indicated that the correlations between constructs were lower than the square root of AVE of the individual constructs, confirming discriminant validity (see Table 2). Thus, the measurement model demonstrated adequate reliability, convergent validity, and discriminant validity. Table 2 Square root of AVE and correlation. Construct PE ES PF PU PV PI TE PE ES PF PU PV PI TE 0.93 −0.17 −0.21 0.81 0.72 0.16 0.50 0.78 0.20 −0.19 −0.10 0.32 −0.19 0.93 −0.25 −0.34 0.02 −0.10 0.87 0.69 0.06 0.57 0.82 0.27 0.38 0.97 0.10 0.88 PU, perceived usefulness; PE, perceived enjoyment; TE, technicality; PF, perceived fee; PV, perceived value; ES, ethical self-efficacy for online piracy; PI, purchase intention. Diagonal elements are the square roots of AVE; off-diagonal elements are the correlations. Y.-S. Wang et al. / International Journal of Information Management 33 (2013) 199–208 205 Table 3 Statistical results of the structural model. Dependent variable Independent variable Path coefficient t-Value R-square Perceived value Perceived usefulness Perceived enjoyment Technicality Perceived fee Perceived value ESEOP Perceived value × ESEOP 0.295 0.461 −0.036 −0.169 0.327 0.342 0.270 4.776* 6.265* 0.985 5.716* 7.863* 9.172* 10.431* 57.7% Purchase intention * 27.2% p < 0.05. 5.2. Structural model 6. Discussion This study proceeded to test the path significances using a bootstrapping resampling technique. Statistical results of the structural model, including path coefficients, t-values, and R-square are shown in Table 3. As expected, both perceived usefulness and perceived enjoyment had a significant positive effect on perceived value (ˇ = 0.295 and ˇ = 0.461, respectively). Thus, H1 and H2 were supported. Perceived fee was found to have a significant negative influence on perceived value (ˇ = −0.169); therefore, H4 was supported. However, technicality was unexpectedly found to have an insignificant effect on perceived value (ˇ = −0.036). Thus, H3 was not supported. Additionally, both perceived value and ESEOP were observed to positively affect purchase intention (ˇ = 0.327 and ˇ = 0.342, respectively), supporting H5 and H6. As to the moderating effect, ESEOP was found to have a moderating effect on the relationship between perceived value and purchase intention, with higher ESEOP leading to higher positive relationship of perceived value to purchase intention (ˇ = 0.270). Therefore, H7 was supported. Fig. 2 shows how ESEOP moderates the relationship between perceived value and purchase intention. Altogether, the proposed model accounted for 57.7 percent of the variance in perceived value and 27.2 percent of the variance in purchase intention, with perceived enjoyment having the strongest effect on perceived value and ESEOP exerting the strongest total effect on purchase intention among the explanatory variables. Additionally, Cohen’s (1988) effect size f2 was used to examine the substantive effect of adding ESEOP to the VAM model. The R2 for the full model is 27.2% while that for the VAM model is 7.6%, leading to an f2 value of 0.267. Cohen (1988) suggested 0.02, 0.15, and 0.35 as operational definitions of small, medium, and large effect sizes respectively. Thus, ESEOP provided a substantial (i.e., larger than medium) effect on purchase intention. Considering the importance of consumers’ willingness to pay for the success of online content industries, this study, based on the VAM and previous literature, explores the antecedents of perceived value and the moderating effect of ESEOP on the relationship between perceived value and purchase intention. This study also helps build a theoretical framework for the research of consumer purchase behavior in the field of online content services. The results indicate that perceived enjoyment, perceived usefulness, perceived fee have a significant influence on perceived value, which, in turn, significantly influences purchase intention. The results also show that ESEOP moderates the positive effect of perceived value on purchase intention. The following paragraphs sequentially discuss the theoretical and practical implication of our findings for consumer online content purchase behaviors. As expected, both perceived enjoyment and perceived usefulness were found to be significant determinants of perceived value. This finding is consistent with previous studies which found that utilitarian and hedonic benefits resulting from using online services are critical in determining consumers’ perception of value (e.g., Chu & Lu, 2007; Kim et al., 2007). However, different from previous research regarding the TAM (e.g., van der Heijden, 2004) which suggests that both perceived usefulness and perceived enjoyment affect adoption intention directly, the results of this study indicate that both perceived usefulness and perceived enjoyment influence purchase intention indirectly through the mediation of perceived value. Importantly, perceived enjoyment was observed to exert a strongest effect on perceived value among the antecedents of perceived value. The finding implies that acquiring and using online music services is in nature a leisure-oriented activity and that online content marketers should include more enjoyable and entertaining elements into their services to increase the value perceived by consumers. Whereas, our findings emphasize that consumers’ value perceptions are motivated not only by hedonic benefits but also by the utilitarian benefits of using online content services. Thus, the development of new functionality and the enhancement of information quality, content quality, system quality, and service quality still should not be neglected in promoting customers’ perceived value in the online content service settings. Consistent with the finding of Chu and Lu (2007), technicality (similar to perceived ease of use) was found to have an insignificant impact on perceived value. This implies that consumers’ computer self-efficacy has been largely increased in the Internet age, causing the insignificant effect of technicality. In line with the works of Kim et al. (2007) and Chu and Lu (2007), our finding suggests that perceived fee (similar to perceived price) has a significant negative on perceived value, which means that consumers who have high perceived fee will have a lower level of value perception than those who have low perceived fee. Thus, reasonable pricing strategies are crucial in enhancing customers’ value perceptions of using online content services. Online content service providers could take advantage of online consumer surveys to discover the acceptable price range by online consumers before marketing a new online Fig. 2. The moderating effect of ethical self-efficacy on the relationship between perceived value and purchase intention. 206 Y.-S. Wang et al. / International Journal of Information Management 33 (2013) 199–208 content service. Additionally, adopting personalized pricing strategies for customized online content services and allowing online contents to be downloaded into different electronic devices without repeated payment is also a feasible way to enhance customers’ value perceptions. In line with the finding of previous research (e.g., Chu & Lu, 2007; Wang, 2008), this study further confirms that perceived value has a significant positive influence on purchase intention in the context of online content services. This implies that consumers who have high perceived value of using online content services are more likely to purchase the online content services than those who have low perceived value. Thus, in order to attract more customers to buy online content services and remain sustainable competitive advantage, online content service providers, based on our findings, should enhance customers’ value perceptions by improving the utilitarian and hedonic benefits of their online content services and adopting a reasonable pricing strategy for their online offerings. When the price is too high, customers may not only refrain from purchasing, but also become suspicious of the quality (Patterson & Spreng, 1997). Importantly, our findings indicate that ESEOP not only has a significant positive influence on purchase intention, but it also has a positive moderating effect on the relationship between perceived value and purchase intention. Consumers who have high confidence in ethical usage of online contents tend to have a higher behavioral intention to purchase online content services than those who have low confidence in the same moral event. This result somewhat coincides with the studies of Coyle et al. (2009), Yoon (2011b), Moores and Chang (2006), and Cronan and Al-Rafee (2008) who found the effect of ethical factors on individual digital piracy. However, the main effect of ESEOP on purchase intention found by this study is inconsistent with the work of Chen et al. (2008) who found that the degree of morality has not a significant influence on behavioral intention to download unauthorized music files. Nevertheless, the interaction effect of ESEOP and perceived value on purchase intention is somewhat consistent with the exploratory finding by Chen et al. (2008) who found that perceived value of downloading free music files influences behavioral intention to download unauthorized music files more strongly for the low morality group than for the high morality group. Similarly, our finding suggests that perceived value of using online content services affects purchase intention more strongly for the consumers with high ESEOP than for those with low ESEOP. As Shanahan and Hyman (2010) note, many misconducts result from unknowing something immoral or illegal. Thus, a comprehensive moral education on digital content piracy is required to facilitate the growth and development of the online content service markets, especially in the Asian areas. For example, teaching students that downloading an unauthorized music file online is an equity-infringing conduct like stealing a CD in a physical shop would gradually change students’ ethical self-efficacy for online piracy, which, in the long run, will reduce online piracy and guide consumers into right consumption mode. 7. Limitations While this study was conducted with methodological rigor, there are some limitations to address in the future. First, the findings discussed and their implications were obtained from one single study that examined a particular online content service (i.e., online music service) and targeted a specific user group in Taiwan. If future researcher wishes to make glittering generalities, they should first randomize their sample to include other nationalities and geographical areas beside Taiwan. Therefore, continued research is needed to generalize the findings of this study and extend the discussion to include additional online content services (e.g., video on demand) or cultural groups. Second, this study does not incorporate all potential determinants and moderators into the value–intention framework, leading to a relatively low explained variance in purchase intention. Hence, there may be a need to search for additional determinants and moderators that can improve predictions regarding purchase intention in the online content service environment. For example, personality traits are potential moderators of the relationship between perceived value and purchase intention (Lu & Hsiao, 2010). Future research could examine how personality traits or other potential moderators interact with perceived value to affect purchase intention. Finally, this study employs a snapshot research approach. Additional research efforts are needed to evaluate the validity of the proposed model and our findings. Longitudinal evidence might enhance the current understanding of the relationships among perceived usefulness, perceived enjoyment, perceived fee, technicality, ESEOP, and purchase intention. 8. Conclusions This study contributes to a more thorough understanding of the antecedents of perceived value and the moderator of the relationship between perceived value and purchase intention. The contributions of this study to research on consumer online content purchase behaviors are threefold. First, different from previous research on the value–intention framework, the current study not only explores the antecedents of perceived value, but it also investigates the moderator of the relationship between perceived value and purchase intention. As such, this study represents a new direction for online consumer purchase behavior research. Second, this study supports that perceived enjoyment, perceived usefulness, and perceived fee significantly influence purchase intention through the mediation of perceived value, confirming the nomological structure of the VAM (Kim et al., 2007; Wang, 2008), which is quite different from that of the TAM (Davis, 1989; Davis et al., 1989; van der Heijden, 2004). Third, this study provides empirical evidence to support that ethical self-efficacy for online piracy not only has a positive effect on purchase intention, but also enhances the positive influence of perceived value on purchase intention. This is a new finding of this study since the main and interaction effects of perceived value and ethical self-efficacy on purchase intention have rarely been explored in previous online purchase behavior research. Future studies are still required to address the determinants and moderators in the value-based adoption model. Acknowledgement This research was substantially supported by the National Science Council (NSC) of Taiwan under grant number NSC 98-2410H-018-019-MY2. Appendix A. Measuring items used in this study Perceived usefulness PU1 Using online music services enables me to acquire the music files that I need more quickly. Using online music services enhances my music appreciation. PU2 PU3 Using online music services makes it easier to get the music information. Y.-S. Wang et al. / International Journal of Information Management 33 (2013) 199–208 PU4 PU5 PU6 Using online music services improves my music appreciation. Online music services provide a variety of music. Overall, I find online music services are useful. Perceived enjoyment PE1 I have fun interacting with online music services. PE2 Using online music services provides me with a lot of enjoyment. I enjoy using online music services. PE3 Using online music services is interesting to me. PE4 Technicality TE1 TE2 TE3 TE4 Perceived fee PF1 PF2 PF3 It is not easy to use online music services. Online music services can be connected instantly (reversed). Online music services take a long time to respond. It is not easy to get online music services to do what I want it to do. The fee that I have to pay for the use of online music services is too high. The fee that I have to pay for the use of online music services is not reasonable. I am not pleased with the fee that I have to pay for the use of online music services. Perceived value PV1 Compared to the fee I need to pay, the use of online music services offers value for money. Compared to the effort I need to put in, the use of online music PV2 services is beneficial to me. Compared to the time I need to spend, the use of online music PV3 services is worthwhile to me. Overall, the use of online music services delivers me good PV4 value. Ethical self-efficacy for online piracy ES1 When you badly need a music file but feel it is too expensive, how confident are you to refuse to have an illegal copy of that music. When you badly need a music file but do not have time to ES2 purchase a copy, how confident are you to refuse to have an illegal copy of that music. When you badly need a music file and have the opportunity to ES3 obtain an illegal copy without anybody else’s knowing, how confident are you not to take advantage of it. ES4 When you badly need a music file and have seen other colleagues use an illegal copy, how confident are you not to take advantage of it. ES5 When you badly need an illegal copy of a music file to benefit your life, how confident are you not to take advantage of it. ES6 If a colleague has a music file that you like very much, how confident are you not to ask for an illegal copy of it. If a good friend badly needs a music file, how confident are you ES7 not to make an illegal copy for him or her. If a good friend badly needs a music file and is asking for your ES8 help to obtain an illegal copy, how confident are you to refuse to accept that request. ES9 If a good friend badly needs a music file that you own and is asking you for a copy, how confident are you to refuse to grant the request. If you see colleagues using an illegal copy of a music file, how ES10 confident are you to try to dissuade them from using it. If you see a colleague selling an illegal copy of a music file for ES11 profit, how confident are you to try to talk him or her to give it up. 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(2011a). Ethical decision-making in the Internet context: Development and test of an initial model based on moral philosophy. Computers in Human Behavior, 27(6), 2401–2409. Yoon, C. (2011b). Theory of planned behavior and ethics theory in digital piracy: An integrated model. Journal of Business Ethics, 100(3), 405–417. Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A meansend model and synthesis of evidence. Journal of Marketing, 52(3), 2–22. Yi-Shun Wang is Distinguished Professor in the Department of Information Management at National Changhua University of Education, Taiwan. He received his Ph.D. in MIS from National Chengchi University, Taiwan. His current research interests include IT/IS adoption strategies, IS success models, customer relationship management, and e-learning. He has published in journals such as Information Systems Journal, International Journal of Information Management, Information & Management, Government Information Quarterly, Journal of Information Science, Journal of Global Information Management, Computers & Education, British Journal of Educational Technology, Cyber Psychology & Behavior, Computers in Human Behavior, Service Industries Journal, Managing Service Quality, among others. He has served as a Project Reexamination Committee Member for both research areas of Information Management and Applied Science Education in the National Science Council of Taiwan. Ching-Hsuan Yeh is a post-doctoral fellow in the Department of Information Management at National Changhua University of Education, Taiwan. He received his Ph.D. in International Business from National Chi Nan University, Taiwan. His current research interests include consumer behavior, e-commerce, and Internet marketing. He has published papers in journals such as International Journal of Information Management, Journal of Business Research, and Food Quality and Preference. Yi-Wen Liao is an assistant professor in the Department of Information Management, Taiwan at Chia Nan University of Pharmacy and Science, Taiwan. She received her Ph.D. in MIS from National Sun Yat-sen University, Taiwan. Her current research interests include electronic commerce, online shopping behavior, and e-learning. Her work has been published in academic journals such as International Journal of Information Management, Government Information Quarterly, British Journal of Educational Technology, and Computers in Human Behavior.
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