The Role of Perceived Value and Gender on Customers' Purchase Intention of Ride Sharing Services

The Role of Perceived Value and Gender on Customers' Purchase Intention of Ride Sharing Services

Swati Sharma (Department of Humanities and Social Sciences, Jaypee Institute of Information Technology, Noida, India)
Copyright: © 2019 |Pages: 16
DOI: 10.4018/IJABIM.2019100103

Abstract

Digitization, the mobile explosion and net connectivity in the developing nations has given birth to Customer 4.0 which are empowered tech savvy beings exposed to vast choices through online platforms. It is interesting how consumers 4.0 in developing markets are adapting to these new products and services and make buying decisions. In this article, the focus is on ride a sharing business which has some of the fastest growing startups, like Uber and Ola which together hold ninety-five percent of the market. This emergence of a new digital reality has important ramifications on the consumer buying decisions. This makes it imperative to study customer perspective; their value perceptions, and its influence on the customers' purchase intention. This article takes the perspective of a customer which adopts a value-based model to explain consumers' buying decisions and also explores the gender difference in value perceptions.
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Literature Review

Consumer decision making has attracted researcher since ages and various theories on decision making have been presented. Expected utility theory of Von & Morgenstern (1947), provided the classical model of decision under a risky environment. The model was later challenged by experimental paradoxes. The most influential alternative theories proposed were prospect theory (Kahnemanand & Tversky, 1972), and regret theory (Bell, 1982). Peter and Tapey (1975) presented a valence framework advocating that consumers perceive both positive and negative attributes of a product and make buying decision by maximizing the net valence (Yang, Chen, & Wei, 2015). However, with the fast development of information and communication technology consumers are offered new tech/app-based product and services. The new technology exposed the consumers to new buying ecosystems leading to technology acceptance theories. The technology acceptance model (TAM) has been widely used to explain why consumers accept or reject technology enabled services (Wang, Wang, Wang, Wie &Wang, 2018). A large number of studies have embraced TAM by extending specific variables (Wang et al., 2018; Yu, Yi, Feng & Liu et al., 2018). However, empirical research suggests that TAM-related models only provide comparatively lower explanatory power in predicting technology adoption intention (Zhu, So & Hudson et al., 2017).

The consumers’ today are not passive actors that respond to the stimuli but rather empower themselves to justify their decision by weighing the explicit and implicit cost.Generation theorists propose that there are distinguishing changes in consumer behaviour with the changes in the macro-environment (Kitchen &Proctor, 2015;Strauss and Howe, 1999) thus creating a need to study consumer 4.0. Consumers’ 4.0 are those who have embraced mobile and internet. They are always connected and exposed to proliferating internet. Empowered by their handheld devices which provides them all the information these consumers are independent and buy goods and services online. Their decisions are influenced and influence other customers through the net community. These hyper connected consumers have the power of information. On a click of a button on their handheld devices they get all necessary information, without much consulting their friends and family. Consumer 4.0 have been brought up in times when buying/shopping is not regarded as a mere act of purchasing. The explosion of product choices has led to a retail culture where buying has taken on new entertainment and/or experiential dimensions (Lee, 2005). The customers decide on the basis of net value received (Ponte, Carvajal & Escobar, 2015). They mentally tradeoff between the efforts incurred and value received. Today’s consumer strives to derive maximum value from their consumption choices by reducing perceived risks and increasing the perceived gains.

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