“Digital Natives” Redemption Intention of M-Coupons: A PLS-SEM Approach – Evidence From China

“Digital Natives” Redemption Intention of M-Coupons: A PLS-SEM Approach – Evidence From China

Wenyan Huang, Leong-Mow Gooi
Copyright: © 2022 |Pages: 18
DOI: 10.4018/IJIDE.292493
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Abstract

Mobile coupon technology is no longer new technology for a consumer to adopt. This article aims to explore key factors affecting the intention to redeem m-coupons for customers who are familiar with mobile phone technology during the COVID-19 situation. A sample of 581 consumers was collected using an online questionnaire from Jan to April 2021 in Hangzhou, the first internet and smart city of China. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) in Smart PLS 3.0 software. Results show m-coupon attitude and m-coupon proneness, are positively affected by past behavior while negatively affected by using distance, which has a positive relationship with m-coupon redemption intention. While perceived risk is no longer an influential factor. Marketers and merchants can provide more suitable strategies as small-scale, regional mobile coupons for precision marketing and coupons can be bundled with different brands for sale.
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Introduction

The prosperity solutions of digital commerce during the pandemic unconsciously affect consumer behavior towards a more digital way. To better confront the economic downturn and pandemic condition, touchless coupons become the e-commerce solution, the redemption of which increased 56.5% in March 2020 (Ross Chad, 2020). Over 90% of U.S. shoppers search for deals before making any purchase online (Stephanie Chevalier, 2021). As for China, Hangzhou municipal government was the first to issue mobile coupons to stimulate consumption during the pandemic. It issued six rounds of government subsidies totaling 500 million yuan, covering 5.6 million people, which directly drove consumption of 5.97 billion yuan and the driving leverage is more than 1:11(Hangzhou government, 2021).

With the development and the convenience of technology, many Chinese people have been used to enjoy mobile phones to surf the Internet and make a purchase. According to the annual report “Statistical Report on Internet Development in China” announced by China Internet Network Information Center (CNNIC) that China has the most digital natives. The scale of mobile internet users in China is reaching 1 billion, which will constitute the world's largest digital society (see in Figure 1).

The mobile shopping market is mature in China. Mobile shopping users have reached 781 million, an increase of 73.09 million from March 2020, which is accounting for 79.2% of mobile Internet users (see in Figure 2). Furthermore, mobile payment is widely accepted by Chinese people. As of December 2020, the number of mobile payment users in China has reached 853 million, an increase of 87.44 million from March 2020, accounting for 86.5% of mobile Internet users (see in Figure 3). Therefore, mobile technology is nothing new technology for Chinese people.

Figure 1.

The scale and proportion of mobile internet users in China (in Million)

IJIDE.292493.f01
Figure 2.

The scale and utilization rate of mobile online shopping users in China (in million)

IJIDE.292493.f02
Figure 3.

The scale and usage of mobile network payment users in China (in million)

IJIDE.292493.f03

Previous studies focused on users’ behavior regarding mobile coupons as new technology (Hyunjoo Im, 2015, Eunju Yoon, Hyunjoo Im, 2014). These studies adopted the Unified Theory of Acceptance and Use of Technology (UTAUT) and the Technology Acceptance Model for the acceptance of new technology (Shen & Chiou, 2010, Perea Y Monsuwé et al., 2004). Emerging from the Theory of Reasoned Action (Fishbein, 1979) and the Theory of Planned Behavior (Ajzen, 1991), these models focus on the user intentions and the actual use of technology (Scherer et al., 2019).

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