Academic journal article Journal of Electronic Commerce Research

The Impact of Perceptions of Interactivity on Customer Trust and Transaction Intentions in Mobile Commerce

Academic journal article Journal of Electronic Commerce Research

The Impact of Perceptions of Interactivity on Customer Trust and Transaction Intentions in Mobile Commerce

Article excerpt

ABSTRACT

The interest in the concept of "interactivity" has increased as we are entering an "always-on" society where people can interact anytime and anywhere. Despite the importance of interactivity in Mobile Commerce (MC) environment, this topic has been given little attention in the academic literature. This paper identified the components of interactivity and investigated the impact of perceptions of interactivity on customer trust and transaction intentions in MC. Empirical results indicate that the addition of MC-specific components of interactivity (perceived ubiquitous connectivity and perceived contextual offer) improves the model fit. Also the perceptions of user control, responsiveness, connectedness, ubiquitous connectivity, and contextual offer have a significant effect on customer trust in MC. Especially, ubiquitous connectivity and contextual offer have a direct positive effect on transaction intentions in MC. Based on these empirical results, this paper suggests managerial implications of new marketing strategies, focusing on the contextual marketing communication that link online, mobile, and offline environment.

Keywords : Contextual offer; Interactivity; Mobile commerce; Trust; Ubiquitous connectivity

1. Introduction

The rapid proliferation of wireless devices such as mobile phones has transformed mobile commerce (MC) as a major driving force for the next wave of electronic commerce (EC) [Liang and Wei 2004]. Although there is as yet no standard definition, MC used in the study refers to all the market activities where wireless devices (particularly mobile phones) are exploited to conduct electronic business transactions, such as product offering, fund transfer, and stock trading [Kalakota and Robinson 2001].

Interest in the concept of "interactivity" has emerged in EC environment, and interactivity has regarded as the crucial element of successful online marketing [see Bezjian-Avery et al. 1998; Deighton 1996; Hoffman and Novak 1996; Peppers and Rogers 1997]. The importance of interactivity will increase in MC environment. Through mobile devices, business entities are able to reach customers anywhere at anytime. Technological advancement in MC makes it feasible to deliver customized service. In MC environment, it is possible to identify the users and their geographical position by tracking the technical address of the mobile device. Using the information on the users' identity, position, access time and profiles, mobile service provider can offer the users with the optimal information or services that are contextually relevant to them at the point of need. For example, mobile service provider may send the information or coupon for blue jeans to a consumer who enters the department store to purchase jeans. In short, interactive contacts with customers will become closer and shift to a real-time basis in MC environment. This kind of interactivity in MC environment is conceptualized as ubiquitous interactivity or continued interactivity [see Kanna, Chang, and Whinston 2001].

Despite the importance of interactivity in MC environment, this topic has been given little attention in the academic literature. And there has been little academic study on the comprehensive review of construct of "interactivity". Furthermore, very little research has addressed the effects of perceptions of interactivity on customer trust and transaction intentions in MC environment. Although there has been a large body of research on interactivity in EC environment, previous researches have several void that need to be addressed.

First, although it is apparent that perceptions of interactivity are based on multiple dimensions, there is no general agreement as to the nature or content of the dimensions. A call for research that specifically examines the "dimensionality" of the interactivity construct has yet to be successfully addressed.

Second, previous literature discussing issues surrounding interactivity is dominated by conceptual efforts to describe the components of interactivity. …

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