HOW TO RETAIN CUSTOMERS OF IPTV

Interactivity, Trust, and Emotion

Geena Shin

Korea Telecom, Seoul, Korea

Joongho Ahn

Seoul National University, Seoul, Korea

Taeha Kim

Chung-Ang University, Seoul, Korea

Keywords: IPTV, Perceived interactivity, Web experience, Trust, emotion, Usage intention.

Abstract: Television is currently in the throes of a paradigm shift. IPTV, which has already secured a subscriber base

of 1.5 million individuals in South Korea, is evidencing rapid growth in the global market. The development

of IPTV is also increasing the interactivity between users and the IT media. The existing interactivity

between users and IT from the cognitive perspective is insufficient to describe the usage behavior and

continuous use intentions of consumers, who evidence a broad diversity of sentiment. This paper begins by

addressing the effects of IPTV users’ trust and emotions on the basis of the perception of interactivity.

According to the results of empirical research into the users of IPTV services, the perception of interactivity

was directly related with trust. Users’ trust bolsters users’ emotion in a positive/negative aspect, and such

emotion was verified to affect the intention continuously use IPTV. The results of the following research

indicate that the trust and emotion of users should be considered from the MIS perspective in an attempt to

build the intention to use IPTV. Additionally, from the executive perspective, cost-effectiveness should be

considered to enhance positive emotions for user retention and eventually bolster intentions to continue to

use IPTV.

1 INTRODUCTION

Television is evolving. We are recently experiencing

a paradigm shift in the TV industry. If TV was

originally to be perceived as a medium of ‘seeing’,

we are currently facing a new generation of ‘doing’

over IPTV (Internet Protocol Television). IPTV is a

new concept in television, which employs Internet

protocols to provide real-time broadcasting, multi-

media contents and two-way services. There are

more than 1.5 million subscribers in three firms that

provide IPTV in Korea only; and the scale of this

service is increasing considerably. This implies that

IPTV is now past the experimental stage of its

services and is presently repositioning itself as a

practical medium for the next generation.

Unlike television in previous years, IPTV is

capable of two-way services including VOD (Video

on Demand), games, finance, and shopping.

Moreover, IPTV is branching out toward internet-

only services such as widget services. Such

capabilities permit IPTV to be used as a medium that

enables interactivity via CMC (Computer Mediated

Communications), which is the combination of

network devices and TV including commerce, SMS

(Short Message Service), chatting, and e-mailing

(Quico, 2003).

The new IPTV media features superior functions

relative to the former media. However, such

functions require user participation, and are also

useless if the usage intentions are unclear.

Therefore, it is important to conduct research

into the manner in which interactivity enhanced by

671

Shin G., Ahn J. and Kim T..

HOW TO RETAIN CUSTOMERS OF IPTV - Interactivity, Trust, and Emotion.

DOI: 10.5220/0003478006710676

In Proceedings of the 7th International Conference on Web Information Systems and Technologies (SSeB-2011), pages 671-676

ISBN: 978-989-8425-51-5

 2011 SCITEPRESS (Science and Technology Publications, Lda.)

IPTV protocols influences usage intentions and

related variables.

In regard to its functional aspects, IPTV provides

a more diverse menu of features than TV previously.

Additionally, Shin (2007) stated in a prior study that:

‘If former TV used a Push-mechanism, IPTV is

based on a Pull-mechanism due to the fact that IPTV

induces user participation”. Recently, a series of

research studies into interactivity as the principal

influence on IT media were conducted (Rafaeli,

1988; Steuer 1992; Zack, 1993; Ha and James, 1998;

Liu and Shrum, 2002; Stromer-Galley, 2004;

Johnson et al., 2006). The results of current research

indicate that the interactivity users perceive when

using the information system positively influences

usage intentions (Wu, 1999; Liu and Shrum, 2002;

McMillan and Hwang, 2002; Fiore and Jin, 2003;

Johnson et al, 2006). Former research into

interactivity has focused on the cognitive area, and

individual features such as trust and emotion were

not considered prominently. The cause of such a

cognitive perspective was the predominant TAM

(Technology Acceptance Model) approach (Davis et

al. 1989), which holds that the use of IT devices is

dependent on cognitive factors. In particular, unlike

former offline services in which direct

communication is possible, an online medium

requires an extraordinary function that attracts

consumers, thus allowing them to communicate

continuously with the medium. However, such

requirements have been considered only glancingly,

if at all. The principal task begins in focusing on the

internal features of the IT medium--for instance,

trust and emotion--as opposed to functional features.

Similar acts may appear in IPTV however, in order

to attract continuous usage intention; fundamentally

building trust and understanding the mechanisms of

emotion are critically important.

Based on the results of various studies

concerning the rapid development of interactivity,

this work confirms the perceived interactivity in

IPTV and attempts to assess the influence of

perceived interactivity on trust and emotion, which

eventually confirms the cause-and-effect

relationship previously elucidated.

The primary questions this study sought to

answer are as follows:

A. Via what mechanisms, specifically, does per

ceived interactivity affect usage intention?

B. How does the perceived interactivity affect

the individual features of trust and emotion?

C. What influences might perceived interactivit

y have on trust according to the level of web

experience?

2 RESEARCH MODEL

2.1 Research Model

The principal objective of this study was to measure

the effects of perceived interactivity in order to

examine the impact of perceived interactivity on

usage intentions. Only a minimal amount of research

has been conducted thus far on the effects of trust in

non-face-to-face services, such as IPTV which is run

off the web. Some previous studies have provided us

with important insights into trust in the online

context; however, further research is clearly

warranted into the function and role of trust in the

new media, including IPTV with its panoply of

interactive features.

Emotion is a crucial factor that cannot be

ignored in the process of decision making. Finding

the reason for users selecting a particular IT has its

limits only through cognitive factors, including ease

of use. This is because similar IT products with

basically the same cognitive factors, which include

ease of use, are clearly being discriminated by users.

The following research model assumes that users

familiar with interactive environments would

experience different results, depending on the level

of experience.

Figure 1: Research Model.

2.2 Hypothesis

2.2.1 Perceived Interactivity and Trust

With regard to the relationship between perceived

interactivity and trust, Park (2002) previously stated

that trust can be formed among internet shopping

mall consumers by providing more accurate

information on a product and enabling consumers to

share information amongst themselves through

active communities. According to Woszczynski

(2002), there were PC users who operated in a

voluntary and innovative manner when interacting

with computers, and this interaction allowed to

individuals to enjoy a high level of trust and

Trust

Intention

to use

Intention

to use

Positive

Emotion

Positive

Emotion

Negati ve

Emotion

Negat ive

Emotion

Perceived

Interactivity

Perceived

Interactivity

Web

Experience

Web

Experience

H1-1

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satisfaction. Using reinforced Information systems

with more online interactivity, such as IPTV, would

be expected to be affected by former experience

with an interactive medium. Venkatesh and Davis

(2000) proved that usage experience increases

continuous usage intentions, thereby proving that

usage experience is an appropriate control variable.

Using the former research results as evidence, the

relationship between perceived interactivity and trust

are expected to be as follows:

1: In IPTV, perceived interactivity should result

in a positive effect on trust.

1-1: In IPTV, users with extended web

experience would have a greater level of perceived

interactivity and trust than those with inferior web

experience.

2.2.2 Trust and Emotion

Wang and Huff (2007) pointed out that trust

involves both cognitive and emotional aspects.

Additionally, they emphasized that emotions may

trigger a cognitive re-evaluation of trust and

experience from the perspective of trust and

emotion. Wang and Huff (2007) asserted that the

objective of trust is to allow the relationship to

mature, such that the provider will represent the

consumers. Moreover, consumers respond in a

manner that is simultaneously emotional and

reasonable.

Young (2006) claimed previously that emotion is

the principal factor affecting behavior, and is an

indispensable aspect of business relations. Young

(2006) proposed that positive emotions are the

principal component, prerequisite, and final outcome

of trust; in fact, the terms are frequently employed

synonymously. However, this study will attempt to

clarify the complex relationship between trust and

emotions, focusing on the manner via which trust

affects emotions. In particular, this study hopes to

approach the concept of trust in a way that resolves

the inconsistencies of previous research results.

Additionally, the following research includes the

hypothesis that positive emotions would strengthen

as trust is built, whereas negative emotions would

grow as trust is reduced.

2: In IPTV, positive emotions would strengthen

as trust is built.

3: In IPTV, negative emotions would increase as

trust is reduced.

2.2.3 Emotions and Usage Intentions

In a previous study of consumer intentions, emotions

such as happiness or disappointment from perceived

performance were shown to evidence a direct and

positive relationship with intentions in the future

(Swan and Trawick, 1981; Patterson and Spreng,

1997). Additionally, satisfaction in portal websites

was shown to exert a profound impact on intentions

(Van Riel et al., 2001). In relation to Information

Technology, it is expected that users will use a

particular information technology continuously, so

long as the users evaluate the technology positively.

Additionally, Kim Yong Young (2007) previously

demonstrated that habits may affect emotional

attitudes, and that expectancy and self-efficacy have

profound effects on cognitive/emotional attitudes,

stating that emotional factors are strongly related to

intentions. The term ‘positive emotions’ is related to

the individual’s decision to maintain such feelings,

but the term ‘negative emotions’ is oppositely

related to decision-making. Bagozzi (1999) stated

that positive emotions lead to sharing of emotions

with others; however, negative emotions lead to

negative behavior.

Hypotheses 4 and 5 can be proposed as a

background for related research results:

4: In IPTV, positive emotions would have a

positive effect on continuous usage intention.

5: In IPTV, negative emotions would have a

negative effect on continuous usage intention.

2.2.4 Mediating Effect of Trust

and Emotions

In regard to trust, greater usage of IT services results

in an effect on trust in a particular aspect of IT,

which can be either positive or negative in its

direction. For example, the results of Chaudhuri and

Holbrook’s (2001) study revealed a relationship

between brand trust and emotions with brand

likeliness. Additionally, brand trust and emotions are

important sources of brand likeliness or

concentration. In other words, as trust accumulates,

it generates a positive impact on emotion, and thus

user concentration.

Positive emotions such as favorability influence

others’s behaviors, and a variety of studies are

currently underway to determine how emotions

influence the perception of trust (Kumar, 1997).

Positive outcomes, such as interactivity, tend to

strengthen trust, whereas negative outcomes tend to

damage it (Anderson and Kumar, 2006).

Until now, studies into this topic have primarily

focused on negative emotions; however, DeWitt

(2008) previously addressed both positive and

negative emotions. Dewitt’s study also revealed the

HOW TO RETAIN CUSTOMERS OF IPTV - Interactivity, Trust, and Emotion

673

huge role played by trust and mediation of emotions,

by empirically researching the effects of trust and

emotions on the recovery process.

Considering hypotheses 1, 2, 3, 4, and 5,

hypotheses 6, 7 and 8, which are related to trust and

emotion, may also be possible:

6: In IPTV, the relation between perceived

interactivity and emotions could be mediated by

trust.

7: In IPTV, the relation between trust and

intention could be mediated by emotions.

8: In IPTV, the relation between perceived

interactivity and continuous usage intention could be

mediated by trust and emotions.

3 EMPIRICAL RESEARCH

3.1 Definition and Measurement of

Construct

The survey regarding interactivity research involves

two factors: response and reaction time, both of

which measure the perceived interactivity on the

basis of the former interactivity research (Johnson,

2006; McMillan and Hwang, 2002; Davis, 1992).

Additionally, validity and reliability are

appropriately modified and selected as measured

variables via trust (Gefen, 2002), emotion (Davis,

1992), and intention (Venkatesh and Davis, 2000).

Prior to conducting the survey, the collected articles

were confirmed twice to ensure the accuracy and

specificity of the data.

The verified measured variables of reliability and

validity identified in previous research were

collected to enhance the tool of measurement. The

perceived interactivity was employed as a measured

variable, and then supplemented and modified to the

following research from Wu’s (2000) 9 indices.

3.2 Research Method and Data

Collection

The targets of the following study were experienced

consumers above the age of 20 who are capable of

continuous IPTV use, as well as subscribers who are

provided with similar levels of the IPTV service in

the capital area.

Data Collection was assessed for 3 months, from

July to 30

September 2009, with the target

population consisting of the IPTV users surveyed by

the interviewers. A total of 480, excluding 22 with

response errors among 502, were used as the dataset

Table 1: Operant Definition of Construct.

Construct Definition

Research

Perceived

Interactivity

The level of perception related to

communication such as suitable

response and fast reaction in a

particular situation.

Alba et

al.(1997),

Burgoon et al.

(2002),

Johnson et

al.(2006),

Rafaeli(1998)

Trust

The level of reliance the other

party: expectancy satisfaction

through promised performance

and consumption.

Gefen(2000),

Park

Chul(2002)

Positive

Emotions

The level of positive emotion,

self-reinforcement, on the basis

of joyful emotions through

accomplishment.

Hoffman and

Novak (1996),

Anderson and

Kumar(2006)

Negative

Emotions

The level of negative emotions,

self-reinforcement, on the basis

of depressing experience when

failed to accomplish goals.

Intention

The level of tendency using

IPTV continuously.

Venkatesh and

Davis (2000)

Web

experience

The level of web experience

which can be divided into two:

high and low

Kim Sung

Byuk (2005)

Table 2: Measurement factors of Variables.

Observed

Variable

Measurement

factor

No. Related Research

Perceived

Interactivity

All time reaction,

suitable response,

interactive

communication

Jonhson et al.

(2006), Wu

(2003),

McMillan and

Hwang (2002)

Trust

Accuracy,

convenience,

stability

Park Soo Young

(2003)

Positive

Emotions

Happy, warm,

admiration, fun

feelings

Heijden (2003),

Davis et al.

(1992)

Negative

Emotions

confusion, anger,

boring, worried

feelings

Intention

Will use

continuously

Tendency to

recommend

Venkatesh and

Davis(2000)

Web

experience

Familiarity

Kim Sung Byuk

(2005)

for analysis. 221 (46%) were women and 259 (54%)

were men; the age distribution was categorized into

three groups: 20~29 (28%), 30~39 (41%) and above

40 (30%).

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674

4 DATA ANALYSIS

8 of the hypotheses were supported by the results of

our investigation. However, as web experience was

anticipated to have an effect between perceived

interactivity and trust, it showed no signs of

significance. This may be attributable to the fact that

it proved impossible to consistently translate the web

experience to IPTV usage. As a consequence, web

experience may not directly accelerate IPTV use,

owing to differences between web-based user

interfaces and IPTV.

5 CONCLUSIONS AND

IMPLICATIONS

The principal objective of the following research

was to confirm the effects of perceived interactivity,

trust, and emotion on intentions to use IPTV service.

In service of this objective, we empirically

researched the effects of individual features such as

trust and emotions in perceived interactivity on

users’ intentions. As a consequence, the

relationships between perceived interactivity and

trust, trust and emotions, and trust and user

intentions were all as anticipated; therefore, the

stated hypotheses were supported. Trust was

affected as perceived interactivity was high and a

positive relation appeared when trust was high;

however, a negative relation was observed in terms

of emotions as trust was low. The results of our

empirical research demonstrated that positive and

negative emotions influenced user intentions

positively and negatively. Moreover, the relation

between perceived interactivity and emotions was

mediated by trust, and the relationship between trust

and perceived interactivity was mediated by

emotions.

The results of our research clearly show that the

trust and emotion of users should be considered

from the MIS perspective in order to build consumer

intentions to use the product. Additionally, viewed

from the executive perspective, cost-effectiveness

should be regarded as a factor to enhance positive

emotions, thus improving user’s intentions to retain

and continue to use IPTV.

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