Creating commercially compelling website-service encounters: an ...

Electron Markets (2011) 21:237–253 DOI 10.1007/s12525-011-0073-z

GENERAL RESEARCH

Creating commercially compelling website-service encounters: an examination of the effect of website-service interface performance components on flow experiences Jamie Carlson & Aron O’Cass

Received: 28 July 2010 / Accepted: 25 October 2011 / Published online: 15 November 2011 # Institute of Information Management, University of St. Gallen 2011

Abstract While the study of flow has attracted the interest of scholars seeking to understand its nature and effects on consumption related behaviors, it has received limited attention from Internet researchers seeking to understand factors controllable by firms which influence its formation. This study contributes to literature by examining the impact of consumer evaluations of website service interface performance components on the development of flow. The study also examines the moderating role of Internet selfefficacy. The analysis of data collected from consumers of organizations across two samples involved in the professional sport sector and e-retailing sector, indicate that the delivery of compelling website-service interface performance (via web-based components) is significantly related to the development of flow experiences. Keywords Flow . E-service encounters . E-service . E-commerce JEL classification M15 . IT management M31 . Marketing

Responsible editor: Hans-Dieter Zimmermann J. Carlson (*) Newcastle Business School, University of Newcastle, Level 3, Corner of King and Auckland Street, 2300 Newcastle, Australia e-mail: [email protected] A. O’Cass Faculty of Business, University of Tasmania, Private Bag 16, 7001 Hobart, Tasmania e-mail: [email protected]

Introduction The provision of compelling service experiences for consumers has become an important issue in e-commerce according to Hoffman and Novak (1996), one that has been often been embedded in the concept of flow (Bridges and Florsheim 2008; Hausman and Siekpe 2009; Hoffman and Novak 2009; Novak et al. 2000). In highlighting the importance of flow and the creation of compelling experiences, Hoffman and Novak went as far as declaring that “creating a commercially compelling website depends on facilitating a state of flow for consumers [and that]…an important objective for marketers is to provide these opportunities” (Hoffman and Novak 1996, p66). However, as yet we do not have a full picture of the factors that contribute to such experiences. Among the critical issues requiring further research is how e-service providers can best design, configure and deliver technology-enabled service experiences for consumers (c.f., Patrício et al. 2008; Cho and Menor 2010) that facilitate flow and are judged as compelling by consumers. In bringing flow and consumer experiences judged as compelling together a natural synergy seems to exist. Further, by focusing on the performance of the website-service interface and linking it to flow we have enhanced our understanding of not only flow, but also the creation of compelling experiences. The concept of flow appears, on an initial examination, to have an important role in electronic services. In the broader domain of services, flow experiences have been studied in extended service encounters (Hopkinson and Pujari 1999; McGinnis et al. 2008), and recently, McGinnis et al. (2008) note that the service provider in many ways helps to produce consumer experiences such as flow. Thus, specific aspects of the service performance delivered by the firm are seen as critical in facilitating the state of flow and

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thus compelling experiences. In the e-commerce domain, Hoffman and Novak (1996) proposed that creating a commercially compelling website depends on facilitating a state of flow. Importantly, advancements in technology, increasing computing power and adoption of broadband services have resulted in greater interactivity between consumers and computers and also now provide the mechanisms for improving flow opportunities (Hausman and Siekpe 2009). Taking this point as a key building block, we argue that practitioners working in e-commerce can assist the development of flow experiences for consumers via the provision of high levels of website-service performance. This is because the interaction process of the e-service encounter between the consumer and the firm via the website is an opportunity for the firm to sell itself, reinforce its offerings and to affect critical consumer outcomes such as pleasurable experiences, satisfaction and facilitate loyalty. For example, website-service processes that are controllable by the firm include the visual appearance, security features, website design, ease-of-use, information content, responsiveness, and order fulfillment/ delivery (e.g. Collier and Bienstock 2006; Fassnacht and Koese 2006; Loiacono et al. 2007; Parasuraman et al. 2005) that have the capacity to generate favorable consumer behavior outcomes such as flow. Achieving flow on a firm’s website has important implications for consumers becoming ‘cognitively locked in’ and subsequently loyal to the firm. The cognitive cost of switching, even in the absence of financial switching costs (e.g. penalties) and search costs (i.e. time and effort) to a competitor offering are high (Bellman et al. 1999; Johnson et al. 2003; Murray and Haubl 2007). While these are positive benefits for the e-service firm, the e-service encounter also presents an opportunity for the firm to disappoint consumers (Bitner et al. 2000; Meuter et al. 2000), and potentially disrupt a flow experience or even prohibit from occurring. If the performance of the websiteservice interface is not effectively delivered flow will be impacted or not occur at all. While flow and compelling experiences and e-service have risen to prominence, little is known about designed factors and configurations that optimize the flow experience for the consumer (Hausman and Siekpe 2009; Song and Zahedi 2005). This is particularly the case for those product categories where flow is an ideal state to be delivered to consumers and facilitates buying behavior and loyalty to the site. Therefore, understanding the effects of controllable website-service elements that influence the development of flow experiences is critical for the firm to induce cognitive lock in and positive behavioral outcomes. Understanding factors that facilitate flow will present firms with information regarding the allocation of resources and capabilities that are required to achieve such customer outcomes and meet the firm’s objectives in relation to sales and the like.

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The objective of this research is to enhance understanding of the design and delivery of compelling website service encounters within the context of flow. To this end, we examine the relationship between performance capabilities of the website-service interface and flow by reviewing and integrating literature from a number of areas including information systems, retailing, psychology and marketing. In doing so, this study contributes to existing literature by (1) theoretically identifying multiple website interface performance components that appear to have the potential to be related to flow formation; (2) providing empirical tests of the model in two specific industry contexts covering firstly, web-service in the professional sport sector and secondly, web-service in the e-retailing sector. The structure of this article is as follows. First, the theoretical framework of the study is discussed which reviews the literature related to the key constructs of interest, then derives the associated hypotheses and presents the model for empirical examination. Second, we discuss the study context and present the research design and results. Following an examination of the results, we conclude with implications for theory, practice and future research.

Theoretical development Over the last 20 years a growing body of research has focused on consumption experiences, and within this research, the concept of flow has received attention as a basis to facilitate the development of compelling experiences. Flow can be described as a perceived state of effortless action, loss of time and a sense that the experience stands out as being exceptional compared to activities in everyday life (Csikszentmihalyi 1997). While flow does refer to a specific state, it is a continuous variable in that different levels of flow can occur, ranging from none to an intense (or complete) state (Csikszentmihalyi and Csikszentmihalyi 1988). Flow is an attempt to explain those times when an individual experiences immersion in a challenging task that demands a perceived level of skill. Flow is a psychological state in which an individual becomes totally involved “within a stimulus field that is limited and scripted by an individual” (Celsi et al. 1993, p. 1) and has been described as a state that exists when an individual perceives a balance between challenge and skill (Jones et al. 2000). It has been argued to occur when situational demands are neither overwhelming nor underwhelming (Celsi 1992). Furthermore, it has been argued that flow experiences within an environment are partially based on the interpretation of stimuli within that environment by the individual—a person-environment transaction (Borrie 1995). Within the context of the online environment, it has been found that the environment itself, as well

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as communications within the environment, may influence flow (Chen et al. 1999). Hence, the surrounding environment, and the individuals within it, has been found to be components that bring about this heightened state (Csikszentmihalyi 1997; Massimini et al. 1988). In the context of website-services and flow, one may realistically suggest that not all experiences consumers have will be intense nor be experienced as flow. While flow has been established as an optimal state for individuals across a number of situations (Csikszentmihalyi and Csikszentmihalyi 1988), creating compelling website-services experiences may not be equally effective in all consumers’ online shopping experiences. This may be so because of not only consumers’ personal characteristics, but is potentially as much to do with the e-service delivery itself and specific aspects of how website-services are developed and delivered. Hoffman and Novak (1996) extend the universal applicability of flow to computer-mediated environments by suggesting that e-commerce success depends on a firm’s ability to create opportunities for consumers to experience flow. To this end, one could conclude from recent arguments (c.f., Hoffman and Novak 1996; Novak et al. 2000; Novak et al. 2003) that creating compelling experiences for consumers in the online environment is dependent upon engineering a state of flow for consumers. This is because the computer-mediated environment of the Internet incorporates various types of interactivity (such as human–human, human–computer, and computer–computer), that has the potential to create a sense of immersion or ‘telepresence’ (Shih 1998). Consequently, it is this interactive environment which provides users with an opportunity to experience flow (Chen et al. 1999). Therefore, in a commercial sense, the flow experience is the desirable consequence of the exchanges between the user (i.e. consumer) and an organization’s website which acts as the service platform for holding the consumer in the e-commerce environment. From a firm perspective, e-commerce practitioners must attempt to orchestrate a specific environment (and set of conditions) for consumers to experience flow. This is highlighted by Rubinstein and Griffiths (2001) who argue “[on] the Internet you have to orchestrate everything to deliver a highly differentiated and consistent positive experience” (p. 401). On this basis, the Internet can be used as a tool to create and deliver unique and memorable website-service experiences which contribute to the development of flow for the consumer, as opposed to just facilitating transactions and the provision of information. Although flow can be determined by many individual characteristics (such as skill, knowledge and brand attitude), the contention is raised here that as a first step, managers need to engineer compelling website-service performances (through the interface) which enable consumers to achieve a flow state. As such, the website-service

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interface becomes the focal mechanism through which to explore the website-service encounter. Website-service encounters and the website-service interface Understanding the impact of the service-encounter has been a focal point for researchers for more than three decades (see Shostack 1977; Bitner 1990). Shostack (1985) describes the service encounter as “…a period of time in which a consumer directly interacts with a service” (p. 243) which includes services delivered through various senses including hearing and sight, which may or may not occur at the point of purchase or involve human interaction (such as Internet banking and online shopping). Other researchers view the service encounter as ‘a moment-of-truth’ satisfying or dissatisfying the consumer (Albrecht and Zemke 1985) that generates the most powerful perception of service (Bitner 1992). In this domain, Pine and Gilmore (1998) argue that these encounters can be considered as a theatre, a show, or an act of performance. As Mittal and Lassar (1996) aptly point out, all retailing entails a service component—the manner in which the exchange between the buyer and the retailer is executed. In effect, all service firms are engaged in retailing the transfer of the ’service product’ to the service consumer (i.e. recipient). In this sense, the consumer’s experience within the service encounter has been recognized as a key strategic competitive weapon, in retail and service firms alike. In the e-commerce domain, the study of the servicescape has much to offer and provides the theoretical underpinning of the research. Originally coined by Bitner (1992), the servicescape is defined as the “total configuration of environmental dimensions” (p. 67) which includes the design of the physical environment that elicits reactions from consumers leading to the display of approach-avoidance behaviors. The servicescape not only provides valuable tangible brand clues prior to purchase (e.g. physical facilities, signage), but it is also an important dimension of the service experience due to its impact on consumers during consumption (Grace and O’Cass 2005). In fact, Bitner (1992, p. 62) argues that “the service setting can affect consumers’ emotional, cognitive, and physiological responses, which in turn influence their evaluations and behaviors”. The importance of the delivery and setting can be seen through the arguments of Berry et al. (2002, p. 1), who states ‘Service organizations create value for their consumers through performances’, where the notion of performances brings together two key aspects, the act and the environment which we focus on here in the context of creating flow experiences. Websites act as a mechanism which provides marketers the opportunity to ‘engineer’ service consumption experiences that create and communicate value to consumers

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(Berry et al. 2002). Service organizations such as sporting teams create value for their consumers through performances (Berry et al. 2002). As such, the performance of the website-service interface notion fits this contention raised by Berry et al. (2002) in that the website-service interface is the mechanism in e-commerce that links the consumer to the firm and is the value creating conduit. In this sense, value can be manifested in the notion of what the consumer receives, and includes sought after experiences found within the website-service encounter such as flow. Components of the website interface and flow Even given the extensive research on flow in the information and communication technologies (ICT) environment (e.g. Chen et al. 1999; Hoffman and Novak 1996; Koufaris 2002; Novak et al. 2000; Hoffman and Novak 2009) it is interesting to note little empirical attention has been given to the performance of website-service interface components as a service delivery mechanism that drives the development of flow. In adopting the concept of flow as a psychological state, where an individual can experience total immersion in an activity and loses track of selfconsciousness and time (Csikszentmihalyi 1990, 1997), some researchers have sought to explore various issues associated with flow in computer mediated environments. Flow appears to be the result of the interaction between the consumer and the website-service interface, occurring in the context of the ICT environments. Studies within the information systems and marketing literature support the notion that flow-like experiences occurring during website-service encounters are primarily driven by Internet characteristics (such as the presence of multimedia, website atmospherics, interactivity, productrelated information content) and when the consumer has a high degree of perceived control during the process of website navigation (e.g. Bridges and Florsheim 2008; Eroglu et al. 2003; Mummalaneni 2005). Conversely, the inhibitors of flow include long download time, delays to download plug-in features, failure of navigation links, long registration forms, non-intuitive use, slow navigation, challenge greater than skills, Internet connection speed and usage costs (Richard and Chandra 2005). An analysis of the literature in the information systems and marketing literature identifies four common components that appear to reflect the core nature of the website-service interface and its performance. These four components relate to website communication performance, website technical performance, website aesthetic performance and website exchange performance. For example, website communications performance appears critical since the information provided on the website must be up-to-date, easy to understand and relevant for

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consumers to make consumption-based decisions. Website technical performance is considered important since the website interface must be responsive, well organized; include appropriate navigation structures for the consumer to interact seamlessly throughout the website. Website aesthetics performance appears important which includes issues related to the visual attractiveness and creative design of the website such as the configuration of color, layout, design, and multi-media features such as images, audio/video and animation. Website exchange performance has been cited as an important issue since the efficiency of processing necessary transactions (e.g. secure purchasing, bill payment, reservation placement etc) between the firm and the consumer is critical because it is the final stage in the sales process where the consumer commits financial resources to the vendor. Therefore, the website-service consumption experience that is provided through the website interface (via the 4 components) by the firm is what causes (or impairs) the consumer to achieve a flow state in the e-commerce environment. As such, in order for consumers to achieve flow within this context, a positive website-service interface performance (i.e. cognitive judgements on the websiteservice interface components) must be delivered by the firm to enable the consumer to be immersed and engaged with a website. On the other hand, if consumers perceive negative performance of the various website-service interface components, they will in turn be less likely to achieve a flow state. To articulate our position, we draw upon a number of previous works from the e-service quality and technology acceptance domains to conceptualise what we argue are four website performance components, which we base on prior conceptualizations found in the information systems and marketing literature including the work of Collier and Bienstock (2006), Fassnacht and Koese (2006), Loiacono et al. (2007), and Parasuraman et al. (2005). While other website performance components are plausible, the focus is on the present five components because of their deep roots in this past scholarly research. The following describes each of the four website-service interface components. The first website-service interface component refers to the communication that takes place via the website during the website-service encounter. Specifically, website communication performance can be defined as the information provided to consumers which is up-to-date, relevant and tailored to the needs of the consumer so that effective consumption-based decisions can be made (Kassim and Abdullah 2008; Loiacono et al. 2007; Parasuraman et al. 2005). Such communication includes information about the firm, and its products and services, as well as transaction details such as payment processes, options and shipping which are critical in order for online consumers to make consumption decisions. Prior studies have argued that information content should influ-

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ence the formation of flow (Hausman and Siekpe 2009; Novak et al. 2000) because access to product-related information can improve consumer decision making through complex, nonlinear, and non-directed queries providing more control over their ability to make purchases. Access to relevant and timely product-related information may also assist consumers to concentrate better because they require active consumer participation and interpretation of the communication presented to them (Koufaris 2002), thereby leading to deeper immersion in the website. The importance of the role of communication in flow on the Web is also highlighted by Pace (2004) who noted that Web users engaged in information-seeking activities is critical to flow formation and that curiosity and interest in the information play a vital role. Drawing on the existing literature, we argue that when consumers perceive the website communication performance to be high, they are then more likely to experience flow. Thus, Hypothesis 1: Website communication performance is positively related to flow The second website service interface component, website technical performance can be defined as the website’s technical processes during the website-service encounter such as speed of data transfer and processing between the firm and consumer (Parasuraman et al. 2005), the website being well organized, with appropriate navigation structures for the consumer to interact seamlessly throughout the website (Collier and Bienstock 2006). Fassnacht and Koese (2006) note that the design structure of the website is important as it must help users to find their way throughout the website, focusing on the ease with which consumers move seamlessly throughout the website. This is a critical issue since it has been established in the literature that the ability of the website to be seen as user-friendly, easyto-navigate and responsive can reduce the challenge level and help consumers locate target information which should increase their focused attention and perceived control in using the website interface enabling flow opportunities to occur (Hoffman and Novak 1996; Novak et al. 2000; Pavlou and Fygenson 2006). Conversely, negative perceptions of website design and structure have been found to reduce the likelihood of flow experiences (Pace 2004). Thus,

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Hypothesis 2: Website technical performance is positively related to flow The third website service interface component, website aesthetic performance can be defined as the website’s image, visual attractiveness and representation. Prior research in online shopping has shown that the visual attractiveness of the website influences consumer evaluations during the online service delivery process (e.g. Collier and Bienstock 2006; Fassnacht and Koese 2006; Loiacono et al. 2007; Parasuraman et al. 2005). Such findings are also consistent with the findings in relation to the offline retail interface where retail servicescapes and store atmospherics (i.e. environments) influence consumer responses such as enjoyment, fun, arousal and sensory stimulation (Bitner 1992; Holbrook and Hirschman 1982). In an online context, atmospherics are embedded in the website-service interface, yet little is currently known about how this interface affects flow development. The limited studies available show that visual attractiveness of the website has a positive influence in the formation of flow because the visual cues including text, icons, images, animation, video and sound provide entertainment and enrich the online shopping experience leading to high levels of perceived control, shopping enjoyment, and concentration (Hausman and Siekpe 2009 Koufaris 2002). This being the case, we argue that when consumers perceive the aesthetic performance of the website to be visually appealing, creative and unique, they are then more likely to experience flow because aesthetic elements within the e-commerce environment play an important role in engrossing the consumer into the website. Thus, Hypothesis 3: Website aesthetic performance is positively related to flow The fourth website interface component, website exchange performance, relates to a range of business activities that relate to the exchange processes with the consumer via the website (Loiacono et al. 2007). In this sense, the efficiency of processing necessary transactions (e.g. secure purchasing, bill payment, reservation placement etc) between the firm and the consumer is

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critical because it is the final stage in the sales process where the consumer commits financial resources to the vendor. Novak et al. (2000) showed that features of the website such as the ease of online ordering and customer support (i.e. performance of transaction-related processes) do have an impact on flow. When engaging in exchanges (i.e., transactions) consumers have heightened levels of concentration on the online purchasing phase leading to time distortion and effective merging of action and awareness between the consumer and the website. As Csikszentmihalyi (1990, p. 53) notes, ‘people become so involved in what they are doing and when that activity becomes spontaneous, almost automatic; they stop being aware of themselves as separate from the actions they are performing’. Previous research has also shown that privacy/security of personal information and ethics plays a crucial part in the e-commerce setting (Gefen et al. 2003; Mukherjee and Nath 2003), particularly in the evaluation of a website-service (Fassnacht and Koese 2006; Wolfinbarger and Gilly 2003). Security features on the website include privacy policy information and seals of approval, such as Better Business Bureau, Verisign, and TRUSTe, which are considered indicators of security by consumers, have been adopted by many websites (Bart et al. 2005). Security and reliability is particularly important in helping consumers overcome psychological barriers to online trading which facilitates exchange between buyer and seller. Reducing such barriers should enhance consumers focused attention and perceived control (Nelson et al. 2005). This being the case, the website exchange performance of the website-service interface is an important issue in flow development because when the consumer feels safe and secure to conduct online transactions as a result of clearly communicated security features and efficient transaction processes to do so, they are then more likely to engage with the website since perceived risk is deemed to be low. In doing so, we expect that such engagement by the consumer to participate in exchange enables a distorted sense of time to occur which leads the consumer to

immerse themselves within the website, thereby, facilitating flow opportunities. Thus, Hypothesis 4: Website exchange performance is positively related to flow The moderating role of internet self-efficacy While direct effects are fundamental to understanding online consumption experiences, these effects may mask underlying differences in the e-commerce environment compared to traditional environments. Such differences may arise from the nature of the interface and the consumers’ reaction to this interface (Ranaweera et al. 2005). It has also been argued that hypothesizing direct effects may be somewhat obvious and that it is more meaningful to investigate moderating effects of external factors such as consumer and situational characteristics (e.g. Ajzen 1991; Baron and Kenny 1986). Within social cognitive theory, self-efficacy is seen as a form of selfevaluation that influences decisions about what behaviors to undertake, the amount of effort and persistence put forth when faced with obstacles, and finally, the mastery of the behavior (Bandura 1997). Within an e-commerce context, self-efficacy describes consumers’ judgments of their capabilities to organize and execute courses of Internet actions required to produce given attainments and use eservices (Hsu and Chiu 2004). Self-efficacy in e-services is particularly important since managing the “moments of truth” within the context of the website-service encounter requires attention to when and how both e-service providers and consumers exercise control during the actual service encounter. Capabilities and the exercise of control has service quality and productivity implications in that the consumer has a greater role as a co-creator of the service experience in the online service provision process (Cho and Menor 2010). Many Internet-based studies have been conducted to examine the impact of self-efficacy on e-commerce use. Within the e-retail context, Novak et al. (2000) found that an individual’s level of skill in using the Internet influences their satisfaction judgement with the website experience. In this sense, experts can possess different search and browsing habits. For example, an expert user of the Internet is more likely to have greater confidence on the Internet to engage in online shopping than a novice user (Bart et al. 2005). Other studies have shown that high Internet selfefficacy influences favourable attitudes and behavioral intentions towards online shopping (Hernandez et al. 2009; O’Cass and Fenech 2003), whereas Yi and Gong (2008) found that Internet self-efficacy systematically strengthens the relationship between customer satisfaction and repurchase intention. This result is interesting in the

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light of Internet self-efficacy studies are still restricted to the study of main effects and have not entered into consideration of an alternate role for self-efficacy, such as moderation effects. The use of moderating variables may be beneficial to reveal the underlying structures of causal relationships for efficacy with other variables. Drawing upon prior literature, we contend that consumers with more Internet self-efficacy are more likely to have greater confidence in engaging in e-commerce. They will be more likely to experience a flow state when perceptions of the website interface performance components are positive. This is because consumers with high Internet self-efficacy are more likely to use their skill to control and manage the technology during the consumption phase of the website potentially leading to flow opportunities to occur. Consumers with a higher level of Internet selfefficacy have a higher propensity to experience a flow state than compared to those consumers who are low in Internet self-efficacy. Although the direct effects of a person’s Internet specific self-efficacy on attitudes and behavior has been studied in several previous e-commerce studies, little attention has been given to exploring the moderating effects of Internet self-efficacy. In particular, no work to date has investigated the moderating effects on the relationship between perceptions of website-service components on flow. Thus, H5: The relationship between a) website communication performance, b) website technical performance, c) website aesthetic performance, d) website exchange performance and flow is positively moderated by Internet self-efficacy (Fig. 1)

Internet Self Efficacy

Website Communication Performance

H1+

Website Technical Performance

H2+

H5+

FLOW Website Aesthetic Performance

Website Exchange Performance

H3+

H4+

Control variables: Age Gender

Fig. 1 Conceptual model of the study

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The application of specific industry context in website-service research Sport has emerged as one of the most important and universal social institutions in modern society and has enormous significance within the services sector (Shank 2004; Chadwick 2009). The scale of the sports industry is exemplified by reference to the US market, where the professional sports teams industry includes approximately 800 organizations with combined annual revenue of over $US16 billion (Hoover Reports 2009). The business of professional sports now involves corporate sponsorships; advertising; arenas and stadiums; managing media with players and coaches as endorsers; sales of licensed team apparel and memorabilia; and virtual attendance via the radio, television, or Internet (Chadwick 2009). As Internet and mobile technology proliferates, professional sport organizations now deliver a vast range of online services including audio and video streaming of games, in-depth information and the sale of goods and services. Over many years the professional sport sector has been quick to adopt the Internet (Beech et al. 2000; Kahle and Meeske 1999) for a range of business activities. Professional sport organizations now deliver a vast range of electronic services including audio and video streaming of games, in-depth information about teams, team members, competitions and the sale of goods and services. The commercial operations of sporting teams is now highly professional (Chadwick 2009) and reflects an increasingly high degree of sophistication, especially their web presence and the ability to facilitate heightened consumption experiences such as flow. Professional sport websites can be categorised within Fassnacht and Koese’s (2006) e-service classification matrix, as offering three types of e-services to the consumer which include 1) pure service offerings such as online shopping and online betting 2) content service offerings such as team news and club statistics 3) supplementary service offers such as event ticketing and match coverage (Fassnacht and Koese 2006). Moreover, professional sport websites can be classified in Francis’ (2009) ‘Fulfilmentproduct Classification Scheme’ as belonging to all four fulfilment modes of Internet retailing including: 1) offline products where consumer orders/pays for product then disengages from website with goods delivered via physical delivery channels (e.g. team-branded physical merchandise), 2) electronic products where consumers purchase and download digital goods from a website (e.g. team-branded software, music files), 3) offline services where the consumer books and pays and then travels to service location to consume the core offering (e.g. match day tickets), and 4) electronic services where the consumers purchase, co-produce and consume a service via a website

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(e.g. payment of membership, access to online broadcasting, subscription content). Thus, the professional sport sector is of commercial relevance for Internet researchers when examining the provision of compelling website services and the propensity of its consumers to experience flow.

Methodology To test the hypotheses, the survey was administered to two samples of online consumers. In the first sample, we collected data from actual consumers from a range of professional sporting organizations in relation to their website-service experiences. Data collection involved an online survey conducted by a market research firm via an online panel. The panel randomly selected member’s aged 18+ who were active consumers of their favourite professional team sport website (i.e. a regular user and had made a purchase within the previous 12 months) to receive email invitations to participate in the study. Respondents were then directed to a website containing the survey instrument. In the second sample, we collected data from consumers who have made a purchase from an online retailer from any product category within the past 12 months in relation to their website-service experience. As was the case in the first sample, data collection involved an online survey conducted by a market research firm via an online panel whom randomly selected member’s aged 18+ that fit the screening criteria. Both sample groups employed the use of retrospective experience sampling which is consistent with previous studies investigating online consumer behavior issues (Bauer et al. 2006; Evanschitzky et al. 2004; Hausman and Siekpe 2009; Wolfinbarger and Gilly 2003). In the first sample, a total of 303 completed surveys resulted from the invitations, with 196 completed surveys in the second sample. In the first sample, the age of participants ranged from 18–54 with an average age of 25 years and the gender split was 59.7% male and 40.3% female. In the second sample, the age of participants ranged from 18–54 with an average age of 43 years and the gender split was 49% male and 51% female. Items to measure the focal constructs of the study were drawn from existing scales found in the information systems and marketing literature and adapted to the specific context of the study. For example, website communication performance measures were based on six items adapted from Kassim and Abdullah (2008) and Montoya-Weiss et al. (2003). Website aesthetic performance was measured by six measures adapted from Loiacono et al. (2007). Website technical performance was measured by six measures adapted from Kassim and Abdullah (2008), whereas six website exchange performance measures were adapted from

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Park et al. (2007) and Loiacono et al. (2007). The flow items were adapted from Hausman and Siekpe (2009), Chen et al. (1999) and Kowal and Fortier (2000) to reflect a unidimensional construct. These items measure post-hoc the consumer experience on aspects of the experience which capture flow. Flow has been measured postexperience in a number of studies in both online and offline environments (e.g. Chen et al 1999; Bridges and Florsheim 2008). Internet self-efficacy was measured via five items adapted from O’Cass and Fenech (2003). All items were measured on seven-point Likert-type scales with scale poles from strongly disagree (1) to strongly agree (7). We included respondents age and gender as control variables. Age and gender have been shown to be moderators of constructs such as satisfaction and loyalty (Mittal and Kamakura 2001). In the questionnaire, respondents indicated their age was indicated by the following five categories:, 18 to 24, 25 to 34, 35 to 44, 45 to 54 and gender as male (1) or female (2).

Results Exploratory factor analysis (using Principal Axis extraction and Varimax rotation) was conducted to assess the factor structures of the seven constructs. All factors with an eigenvalue greater than 1 were retained (Hair et al. 1998). In addition, factor loadings of less than 0.35 were suppressed. As shown in Table 1, all items loaded onto their appropriate factor and all factor loadings ranged between 0.65 and 0.94. The average variance explained ranged from 0.59–0.87. All constructs have Cronbach alphas above the 0.70 threshold advocated by Nunnally’s (1978) and are therefore deemed acceptable. Following the factor and reliability analysis we checked the data to assess whether any assumptions underlying multivariate analysis were violated. Specifically, we investigated the normality of the data, constant variance and linearity where no serious violations were discovered. Given that a single source of information can introduce spurious relationships among the variables, and as this study collected data via single source methods (self-report scales), the need to test for common method variance was warranted. Two steps were taken to address common method bias. Following the procedure recommended by Salancik and Pfeffer (1977), the measurement scales in the questionnaire were first arranged, whereby the measures of independent variables preceded the dependent variables and items on capability constructs which have the same scale poles were distributed in a non-sequential order. Further, Harman’s one-factor test was employed. Evidence for common method bias exists when one factor accounts for most of the covariance. Using this approach for sample 1,

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Table 1 Scale items, reliabilities, factor loadings and correlations Constructs (and items)

Sample 1 Professional Sport Sample 2 Retail Loading

WEBSITE COMMUNICATIONS PERFORMANCE Information on the website is effective Website adequately meets my information needs to make informed decisions The website provides in-depth information Website allows me to interact with it to receive information, products and /or services according to my preferences The website has personalised communication features, which help me accomplish my task I can interact with the website in order to get information tailored to my specific needs WEBSITE TECHNICAL PERFORMANCE When I use the website there is very little waiting time between my actions and the response The website pages load quickly Learning to operate the website is easy for me It is easy to move around and get what I want on the website I find the website logical to follow and easy to use WEBSITE AESTHETIC PERFORMANCE The website interface has innovative technical features The website’s technical features are innovative

AVE

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.87

.74

.89 .90 .92 .93

.84 .89 .89 .81

.90 .88

.87 .84 .77

.88 .80 .90 .90 .89

AVE

.76 .78 .89 .87 .91 .88

.94

.80

.92 .91

.82 .89

The website has unique interactive functions that help me carry out my tasks The website is visually pleasing The website looks attractive The website’s colors and graphics are appealing WEBSITE EXCHANGE PROCESS PERFORMANCE The website has adequate security features such as trustmarks I trust the website to keep my financial information safe I trust the website administrators will not misuse my financial information The website allows transactions to be easily completed on-line All my business needs can be completed via the website Most all business processes can be completed via the website INTERNET SELF-EFFICACY I could easily use the World Wide Web to find information on a product/service I can get to a specific Website using a browser I have the skills and experience to search the World Wide Web on my own I would be able to use the Internet on my own to locate specific Websites I feel that I am an experienced user of the Internet FLOW

.93 .93 .94 .94

.92 .92 .89 .92

I become totally involved in what I am doing when I am on this website I seem to lose track of time when I am on this website I experience a feeling of being in total control when I am on this website I can escape from the everyday world Construct Mean SD 1 Sample 1 1. Communication Performance 4.9 1.6 .95 2. Technical Performance 5.9 1.0 .65 3. Aesthetic Performance 4.4 1.8 .80 4. Exchange Performance 5.4 1.3 .84 5. Internet Self-Efficacy 6.6 0.8 .15 6. Flow 4.5 1.5 .54

2

.88 .84 .81 .83 3

.88 .62 .71 .33 .46

.97 .72 .08 .54

.79 .67 .85 .85 .81 .80 .81

.74 .89 .90 .89 .78 .86 .85

.82 .88 .90 .91 .91 .92

.82 .89 .88 .90 .92 .93

.71

.59

4

.86 .82 .65 .73 5

6

.87 .22 .50

.94 .08

.86

246

J. Carlson, A. O’Cass

Table 1 (continued) Constructs (and items)

Sample 2 1. Communication Performance 2. Technical Performance 3. Aesthetic Performance 4. Exchange Performance 5. Internet Self-Efficacy 6. Flow

Sample 1 Professional Sport Sample 2 Retail

5.2 5.1 5.1 5.3 4.7 4.6

1.1 0.9 1.1 1.1 1.4 1.1

.93 .89 .85 .87 .26 .49

.92 .84 .87 .32 .48

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.95 .79 .22 .50

.92 .28 .53

.94 .22

.76

Diagonal bolded entries are reliabilities; others are correlation coefficients

six factors were extracted with eigenvalues greater than 1 and the variance explained was 77%. The first factor accounted for 44% of the variance with the second factor accounting for 14% and the remaining four factors sharing 19% of the variance. As one factor was not present (or a common factor underlying the data) and as the majority of the variance was not accounted for by one general factor, a substantial amount of common method variance was not evident. In the second sample, six factors were extracted with eigenvalues greater than 1 and the variance explained was 75%. The first factor accounted for 36% of the variance with the second factor accounting for 15% and the remaining four factors sharing 24% of the variance. As one factor was not present (or a common factor underlying the data) and as the majority of the variance was not accounted for by one general factor, a substantial amount of common method variance was not evident (Lau et al. 2010; Podsakoff et al. 2003). Since no serious violations were discovered in both samples, hypothesis testing was then conducted.

Hypothesis testing and results Hierarchical moderated regression analysis (HMRA) using PASW (v. 18) was used to test the study hypotheses. Following the advice of Aiken and West (1991), all the variables were mean centred to minimize the threat of multicollinearity between the interaction terms and their components in equations where the authors included the interaction terms. Multicollinearity among the variables was tested by calculating the variance inflation factor (VIF) for each of the regression coefficients. The VIF values for both sample groups were below the cut-off of 10. Table 2 shows the findings of the hierarchical moderated regression analysis. For each sample group, the following procedure was undertaken; In Step 1, only the two control variables were entered. In step 2, the main effects of

website communications performance, website technical performance, website aesthetic performance, and website exchange performance were entered along with the control variables. In step 3, the two-way interaction effects between the four website performance components and Internet self-efficacy were entered along with control variables and the main effects of the four website performance components. Evidence of the two-way interactions, H5, would exist if the interaction terms accounted for a significant incremental variance in explaining flow, either individually, manifested by negative beta values, or collectively, revealed by the values of the incremental F-statistic (Gupta and Kabadayi 2010). The findings for sample 1, as shown in Step 1 (Table 2), gender was found to be significantly related to flow, whereas age was not. Next, Step 2 provided a significant increase in variance explained over Step 1 (ΔR2 =0.28, ΔF= 24.412, p