Mobile Internet Acceptance Among University Students: A Value-Based Adoption Model
Mobile Internet Acceptance Among University Students: A Value-Based Adoption Model
Mobile Internet Acceptance Among University Students: A Value-Based Adoption Model
Abstract— The mobile internet market has so far experienced in a capability to combine mobile and internet services will be the
rapid growth and intense competition. These conditions have key success for the future. The intense competition causes
caused many mobile internet providers to adopt marketing Indonesian mobile internet users receive wide range of
approaches since they must compete to attract and stay close to attractive prices and mobile internet packages. More and more
retain their customers. Despite its phenomenal growth, there is
lack of research that focus on personal users of mobile internet.
telecommunication providers make a shift in adopting
By applying the Value-based adoption model, the objective of this marketing approaches since they must compete to attract and
study is to analyse the perceived value relations to new ICT stay close to retain their customers. This means that those who
mobile internet adoption behavior. Purposive sampling was are able to maintain relationships and the best offering would
employed to gather the data. 199 valid data were analysed using likely to gain customer loyalty and further competitive
Partial Least squares. The results show that usefulness and advantage. The intense competition makes necessary to
enjoyment which represent benefits had positive influence on understand the driving forces of customer behaviours.
perceived value. Whereas, technicality was the only dimension
(represented as sacrifices) that influenced perceived value. Despite its phenomenal growth, research in mobile
Perceived fee was not significant as dimensions of perceived value.
Overall, perceived value had positive effect on adoption
internet that focuses on personal users has been limited [29].
intentions. Technology Adoption Model (TAM) [12] is the most
prominent model employed in the adoption and usage of
Key words: Perceived value, adoption intention, mobile internet technology mostly for users of traditional internet users/non-
mobile internet users. Many researches focused on
I. INTRODUCTION technological developments [7]. Among many research in
Mobile Internet commerce is said as a revolution that is technology adoption, only few studies have explored
driven by the world’s two fastest growing sectors: mobile individual use of mobile Internet and the factors that influence
technology and the Internet. Mobile Internet is defined its adoption. Kim et al. [29] noted that TAM has limitation in
differently and one of the definition stated that “The mobile explaining the adoption of new information and
Internet is mobile commerce activities, including mobile communication technology (ICT) such as mobile Internet.
telecommunication, mobile content, entertainment service and Kim et al. [29] model particularly emphasized on the different
e-commerce relying on a mobile platform” [20]. In the future, adoption intentions between personal users and office users.
where people demand more mobility and flexible The personal users tend to emphasize value maximization of
communications, it is predicted that Internet accessibility will new ICT since the cost of adoption and usage are borne by
take place by using small and wireless devices that enable themselves. Most of the personal users adopt and use the new
“anywhere and anytime” access [28]. ICT for personal purposes. On the other hand, the users of
traditional internet technologies are employees in an
Indonesia as a developing country has also experiencing organizational setting, and use the technology for work
in the impressive growth rate of internet usage. There was an purposes, thus the cost is borne by the organization, and their
increase from 42 to 55 million of Indonesian internet users in value maximization is less than those of the personal users. A
2011 [24]. Among the 42 million internet users in 2010, the number of studies in the consumer behavior and marketing
number of people who use mobile devices reached 29 million literature [6, 10, 44] have concern on value maximization.
people. This means that more than 50% internet users in Based on the prospect theory, the value function is adopted
Indonesia use mobile devices to browse on the internet. The and defined over perceived gain or loss relative to a reference
adoption of mobile internet is dominated in the big city and point [29]. This means that people tend to choose the behavior
only 4.1% located in rural area. The geographical condition of that leads to the highest payoff. The concept of customer value
Indonesia as an archipelago makes mobile internet more [36, 37] in the marketing literature is also basically concerned
common and flexible. Apart from mobile internet users, there on the trade-off between total benefits received over total
are 12 mobile operators in the market, five of which control 92 sacrifices. A value-based model was developed to capture and
percent of income revenue. The fierce competition requires present adoption of ICT as a comparison between benefits and
companies to become extremely innovative and creative in costs.
marketing strategy in order to capture the market share. The Based on the value maximization principle that may
creativity of telecommunications service developers and explain mobile internet users’ acceptance better than the
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common TAM, this study empirically tests a Value-based Further, the TRA explains that, one’s behavioural intention is
Adoption Model (VAM) of mobile internet as previously determined by the one’s attitude (positive or negative feelings)
developed by [29]. Many studies have identified that quality towards the behaviour and subjective norm. TRA, however, is
and satisfaction is no longer sufficient as the sole source of not free from weaknesses. It is argued as a general model in
competitive advantage. Researchers have now looked at predicting individual’s behavioural action, and thus not
customer perceived value as a variable that may influence specific enough to explain particular behavior such as new
positive behavioural intentions and thus competitive ICT or mobile internet context [12].
advantage. The research aims to examine mobile internet
adoption as a new ICT from the consumer perspective
C. Technology Acceptance Model (TAM)
(personal users), and not from the technology user perspective
(office internet users). The focus on customer’s perspectives The TRA is developed for explaining a situation specific in
will provide a better insight based on the users’ perspectives adoption of technology Davis [12] introduced TAM as an
with respect to the value maximization and its relationship adaptation of TRA. TAM is considered as one of the most
with adoption intention. widely applied technology adoption models in the information
technology since it known for its being parsimonious
This paper is organised into five sections. The first section (particularly economical to apply) [32]. TAM is specifically
introduces general features of competition in mobile internet developed to explain acceptance in information technology
and the objective of this study. Follows in the second section adoption [13]. TAM model focuses on user’s behavioural
describes the theoretical background and hypotheses. Next intention to adopt a technology, enable to predict the actual
section focuses on the methodology. The results and technology usage [32]. The difference between TAM as
discussions follow the third section. The final section presents compared to TRA is the exclusion of attitude component.
implications and conclusions. Attitude is a psychological tendency that is expressed by
evaluating a particular entity with some degree of favour or
II. LITERATURE REVIEW disfavour [29]. Davis et al. [13] omitted attitude in his final
TAM. Empirical studies have found that attitude did not
A. Mobile Internet and Mobile Commerce influence intention directly [40]. Davis [12] has posited that
perceived usefulness and perceived ease of use together
Mobile Internet is found to be differently defined by many determined an individual’s attitude towards using a
researchers. Kim et al. [27] proposed that mobile internet is technology.
the use of the Internet via hand-held devices such as mobile
phones or personal digital assistants. Wang et al. [43] stated
that mobile Internet is an enabling technology for all kinds of D. Perceived Value
mobile activities and a mobile device can be regarded as a Perceived value is a new construct that has gained interest
smart and light tool to deliver new information to the users. after service quality and satisfaction have been questioned
Hsu et al. [20] define it as mobile commerce activities, regarding their influence on customer behaviour intentions.
including mobile telecommunication, mobile content, Many different definitions of perceived value have been noted
entertainment service and e-commerce relying on a mobile in the marketing literature. Customer perceived value is often
platform. The mobile internet becomes very popular because understood as an assessment between perceived benefits and
of these advantages: it can be use in a wider situation and the perceived costs [44]. Early interpretations of customer value
size is small and more economic [31]. Nevertheless, the small emphasized only on the benefit and sacrifice components as
size, small screen and less power are the common problems reflected by perceived quality and monetary price [19]. This
attached to mobile internet. Overall, the main reason for the conceptualization is believed to be too simplistic as it does not
popularity and the rapid growth of the mobile internet market consider the multi-dimensionality aspects of decision making.
is basically due to its mobility and reach provided to the It also does not consider the existence of perceived benefits
customers. Theory of Reasoned Action (TRA) and sacrifices. Sheth et al. [36] extended the conception of
earlier customer value by not only considering functional
value (quality and monetary) but five aspects including:
B. Theory of Reasoned Action (TRA) functional value, social value, emotional value, epistemic
When new technology arrives and introduced, people need value and conditional value. Among many existing definition
to firstly adapt and different people have different level of of customer value, most common definitions of customer
adaptation. In ICT literature, many models have been value in the marketing literature have used Zeithaml [44, p.
developed to explain adoption of technology. One of the 14] ‘the customer’s overall assessment of the quality of a
earliest theories is the Theory of Reasoned Action (TRA). This product based on the perception of what is received and what
theory is widely cited to explain the adoption of technology. is given’. Potential customers who perceive that they will
The TRA has been proven empirically in predicting human receive high service value from the service provider should
behaviours across different contexts [2]. This theory have stronger positive behavioural intentions when compared
emphasizes one’s behavioural intention, in which actual to those who perceive low service value. Perceived value
behavior is determined by the behavioural intention [2]. conceptualization in this study follows the conceptualization
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from Zeithaml [44] which is the comparison between benefits extent to which the activity of using the computer is perceived
and sacrifices. to be enjoyable in its own right, apart from any performance
consequences that may be anticipated”. Enjoyment thus
In measuring the mobile internet adoption, Kim et al [29] represents an affective and intrinsic benefit. Petrick [33]
adopts the benefits and costs conceptualisation and proposed characterized enjoyment as emotional response/joy received
value-based model of mobile internet adoption. However, Kim from purchase and product quality. In addition to this,
et al. [29] criticized that the adoption behavior in TAM was perceived enjoyment is theorized to influence usage intention
only represented by two factors: usefulness and ease of use directly [14]. Intrinsic motivation evaluates an individual’s
(without attitude). In fact attitude is important in the ICT liking, enjoyment, joy and pleasure associated with technology
adoption such as mobile internet since most of the users adopt usage [40]. In fact, a similar concept was proposed by Triandis
the technology for personal purposes. As a consequence, users in [32], before Davis’s work in which attitude (i.e. the feeling
must pay all the costs of adoption. As personal users, they play of joy, elation, pleasure, disgust, and displeasure) may affect
dual roles which are as the technology user and service behaviour. Empirical studies also support the influence of
consumer. The traditional technology adopters such as perceived enjoyment on intention to use in the Internet and
common internet services are believed to have less attitude Websites acceptance [39]. Previous studies have also shown
concern since they use technology for work purposes, and thus that the benefit component comprises perceived enjoyment, in
costs are paid by the company [29]. addition to perceived usefulness [32] and that enjoyment and
fun have a significant effect on technology acceptance beyond
E. Value-based Model
usefulness. Both extrinsic and intrinsic factors have been
found to influence perceived value and behavioral intention
Considering the importance of attitude aspect, Kim et al. [Rogers in 29], and these findings also apply to information
[29] suggest that attitude should be considered in the adoption systems [30]. This study therefore proposes these following
model of mobile internet. VAM was developed to overcome hypotheses:
the weaknesses of TAM model in explaining new ICT
adoption such as mobile internet. By considering value H1: Usefulness is positively related to perceived value
maximization, VAM offers a simple and straightforward H2: Enjoyment is positively related to perceived value
model in predicting mobile internet adoption. VAM is built on
two basic construct to represent perceived value namely 2) Perceived Sacrifices
benefits and sacrifices. The benefits include usefulness and
enjoyment, while sacrifice covers technicality and perceived Perceived Sacrifice refers to both the physical costs and
fee. the mental effort relating to the experience after using a given
product or service [44]. Previous research suggested that
1) Perceived Benefits consumers’ costs and efforts must be considered when making
evaluation on products or services [44, 16]. Perceived
Base on the Cognitive Evaluation Theory, motivation is sacrifices can be both monetary and non-monetary [38, 44].
divided into extrinsic and intrinsic motivation [29]. Extrinsic Monetary spending includes the actual price of the product.
motivation is the performance of an activity to achieve a Non-monetary costs include time, effort and other
specific goal and intrinsic motivation is the performance of an unsatisfactory spending for the purchase and consumption of
activity for no apparent reinforcement other than the process the product. Some previous surveys have identified that
of performing the activity per se [13]. In VAM, Kim et al. [29] technical factors and price is the most significant barrier to
propose ‘usefulness’ as extrinsic and cognitive benefit of mobile Internet adoption [29]. The following discusses
perceived value. Usefulness is defined as the total value a user perceived sacrifices in terms of technicality (non-monetary
perceives from using a new technology [Rogers 1995 in 29]. sacrifice) and perceived fee (monetary sacrifice).
Individuals evaluate the consequences of their behavior in
terms of perceived usefulness and base their choice of Technicality is the degree to which mobile internet is
behavior on the desirability of the usefulness. The usefulness perceived as being technically excellent in the process of
construct has been used extensively in information systems providing services [13]. The technicality of mobile internet is
and technology research, and has strong empirical support as determined by users’ perceptions of ease of use (whether using
an important predictor of technology adoption [e.g. 38, 25]. the system is free of physical, mental and learning effort [12].
According to Pedersen et al. in [29], the usefulness of mobile system reliability (whether the system is error-free,
internet services affects their adoption, underlining the key consistently available and secure), connectivity (whether
factor in mobile internet adoption. connection is instant and straightforward) and efficiency
(whether loading and response time is short) [12]. Loading and
The other perceived benefit is the intrinsic motivation response time in the mobile internet can be considered as time
called as ‘enjoyment’. Davis et al. [13] have modeled the role costs. Ease of use and connectivity are considered effort and
of intrinsic motivation in TAM by introducing the concept of convenience cost, respectively. Technicality of the system is a
perceived enjoyment. Perceived enjoyment is defined as “the combination of all the non-monetary costs. Technicality can
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be negatively perceived for new ICT users with respect to time was attributed to a specific service, the behavioral intention to
costs, extra efforts and convenience costs. use that service in the future will be greater. Kim et al. [29] in
value-based adoption of mobile Internet identified that value
Perceived price symbolizes the encoding of the objective maximization would increase adoption of mobile internet. A
selling price of a product/ service [21]. Customers in the ICT study conducted in Taiwan for measuring mobile Internet
mobile internet would probably compare the fee of current acceptance showed that perceived value has significant
with previously encoded prices of mobile phone calls and influence on the acceptance of mobile Internet [43]. In the
stationary Internet access. The result can be an important data mobile internet, past researchers claim that perceived value is
on the price comparison made by the customers’ perception of needed to be studied as a factor for adoption. Based on the
the fee. Perceived fee (cost) is the evaluation by comparing the results of earlier studies discussed in the previous section, this
benefit of the service with the cost/price of using the service study finally proposes:
[9]. When users perceive that the price is greater than the
benefits a service, users will decide not to subscribe to that H5. Perceived value is positively related to adoption intention.
service. In general, cost/fee plays an important role in
determining the adoption of technology among potential users
[32]. This study therefore proposes these following III. RESEARCH METHODOLOGY
hypotheses:
A. Measures
H3: Technicality is negatively related to perceived value. This research is done in an attempt to empirically test a
H4: Perceived fee is negatively related to perceived value. Value-based Adoption Model (VAM) of mobile internet.
Based on the literature review, the concept of perceived value
In addition, there have been many debates about the dimensions in this study follows Zeithaml [44] which covers
characters of the constructs when they are being examined in benefits and costs. More specifically, items selected for the
structural equations. More specifically, when a construct is perceived value constructs were primarily adapted from prior
proposed, from the conceptual point of view, it is necessary to studies to ensure content validity. Four dimensions were
identify whether the construct is a formative or a reflective one proposed to represent perceived value namely enjoyment,
[15, 22]. Anderson and Gerbing [3] contended that the usefulness, technicality and perceived fee. Fourteen indicators
decision to treat whether it is formative or reflective concept is were examined to measure perceived value of mobile internet.
important since a proper specification of a measurement model Three items measuring enjoyment [1], six items measuring
is essential prior to assigning the meaning of the relationships usefulness [12], three items measuring technicality [29], and
implied in the structural model. Ruiz et al. [35] argue that three items measuring perceived fee were developed from
most examinations of perceived value, particularly research Voss et al. [41]. A unidimensional measure of intention
that uses a trade-off model (benefit versus sacrifice) which adoption was adapted from Davis et al. [12]. Likert scales
specified it as reflective model failed to conceptualize the (ranging from 1 to 5), with anchors ranging from ‘‘strongly
construct correctly. Instead, perceived value is considered disagree’’ to ‘‘strongly agree’’ were used for all questions.
better represented as a higher-order formative construct that After pre-testing the measures, these items were slightly
contains benefits and sacrifices [23, 35]. A thorough reviewed and modified to accommodate suggestions received
discussion regarding justification of customer perceived value during the pre-testing stage.
as a formative higher-order construct can be found in Lin et al.
[23]. In modeling perceived value, this study applies the B. Sample and Data Analysis
formative higher order construct of customer perceived value,
thus, not adopting the measurement of perceived value as Data were collected from post graduate and
employed in the study from value-based model [29]. The use undergraduate students who are mobile internet users in the
of formative higher order model for perceived value in this city of Yogyakarta, Indonesia. Because of budgetary and time
study marks the different as compared to the value-based constraints, purposive sampling was employed. The
model. population included only those respondents who were at the
same time users of core mobile internet services.
F. Perceived Value and Adoption Intentions Questionnaires were distributed across several cafes and the
In the past researches, consumer value has been studied as three local universities. Given the existence of formative
the determinant of consumers’ behavioral intention [37, 36, constructs, PLS (Partial Least Squares) was chosen because of
44]. Perceived value, involving all the costs and benefits users the capabilities to analyze both formative and reflective model
find in the purchase and use of a product or service affects [17]. There is a tendency for the data to be negatively skewed
behavioral intention [45]. Behaviour intention is the degree of in the study involving perceptions [4]. PLS can accommodate
reported intention to use products or services in the future this nature of data since PLS does not require normally
[42]. Adoption intention in this study follows the intention to distributed data. In order to assess the statistical significance,
use as proposed in Davis et al. [12] and Wakefield and Barnes Smart PLS [34] was used with bootstrap analysis using 200
[42]. Oh [45] in their research found that when a high value sub-samples. Since the model involved formative formulation,
multicollinearity was checked for all customer value
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components and there were no evidences of multicollinearity.
By using PLS, the measurement model was evaluated by Table 1. AVE, ICR, R2, and Alpha
examining the individual loadings and weights of each item,
internal composite reliability (ICR), average variance Composite Cronbachs
AVE Reliability R Square Alpha
extracted (AVE), AVE Square root and discriminant validity Adoption Adoption
through cross loading [11]. Intention Intention 0.7056 0.8772 0.3907
Enjoyment Enjoyment 0.7786 0.9133 0
Technicality Technicality 0.6054 0.8193 0
IV. RESULTS AND DISCUSSIONS Usefulness Usefulness 0.5879 0.8941 0
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influence between enjoyment and perceived value (H2) is introduced, reliability, connectivity, response’ time and ease of
supported, 3) The negative direct influence between use were still in the stage of adaptation, therefore not
technicality and perceived value (H3) is supported, 4) The providing the optimum outcomes. For users, this was
negative direct influence between perceived fee and perceived perceived as somewhat negative. Perceived fee was not
value is rejected (H4) and 5) The positive direct influence significant. This was somewhat surprising finding since
between perceived value and adoption intention is supported. previous finding identified strong influence of perceived fee
As can be seen from Figure 1, this figure describes the results on perceived value. This may because that many mobile
of all hypotheses proposed. internet providers are very competitive and thus offer
competitive prices. Other reason might be that price offered in
mobile internet was considered affordable, thus not quite
significantly contributing to value as other dimensions were
seen as much more crucial than price.
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vol. 42,no. 1, pp. 85-92. AUTHORS PROFILE
[39] Thompson, SHT., Vivien, KGL. and Raye, YCL, 1999, R. Roostika received her PhD from Swinburne University of
Intrinsic and extrinsic motivation in Internet usage, Technology, Melbourne, Australia, in 2010. Email:
Omega, (27;1), 1999, pp. 25-37. ratna.roostika@upnyk.ac.id
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