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Millennial Behavioral Intention To

Adopt E-Book Using Utaut2 Model

Annetta Gunawan

International Marketing Program, Management Department, BINUS Business School Undergraduate

Program Bina Nusantara University

Jakarta, Indonesia 11480 [email protected]

Brian Garda Muchardie Management Department, 

BINUS Online Learning Bina Nusantara University

Jakarta, Indonesia 11480 [email protected]

Karina Liawinardi International Marketing Program,

Management Department, BINUS Business School Undergraduate

Program Bina Nusantara University

Jakarta, Indonesia 11480 [email protected]

Abstract— The significant growth of internet users in Indonesia creates the prospect of digital book sales in Indonesia. Nevertheless, e-book sales in Indonesia are still low, which is only about 2 percent of the total books in circulation. Therefore, this study aims to determine the effect of UTAUT2 variables, personal innovativeness of IT, perceived costs and environmental consciousness in influencing the behavioral intention to adopt e-books in millennials in Jakarta simultaneously and partially done by conducting online surveys to 200 millennials in Jakarta by using SEM-PLS analysis method. The research results show that the behavioral intention to adopt e-books in millennials in Jakarta is influenced by UTAUT2 variables, perceived costs, environmental consciousness and personal innovativeness of IT simultaneously but not all partially.

Keywords—UTAUT2, personal innovativeness of IT, perceived costs, environmental consciousness, behavioral intention to adopt e-book

I. INTRODUCTION

Internet and smartphone users around the world continue to increase every year. The growth of internet and smartphone users in the world does not only occur in developed countries, but also in developing countries. It is undeniable that increasingly days technology is growing rapidly [1]. This has caused changes in all sectors of life, not least in the realm of education. Many schools or colleges have taken advantage of technological developments in books, namely electronic books (e-books) replacing books that are commonly used manually (printed books).

books have been defined in various perspectives. E-books are digital versions of book publicizing consisting of words and images [2], while [3] defines e-books as mobile devices that make it easy for people who get them in any time and place. Changing printed book e-books in digital form both in various formats that can be accessed through electronic media such as computers, laptops, smartphones and iPads. In the future it is estimated that people will replace digital books with e-books for use in class [4]. The emergence of e-books has now crucially changed because the world of technology is growing and the needs of readers are constantly changing [5]. The e-book industry has a huge opportunity to continue to develop and innovate when considering the increasingly sophisticated growth of technology and the internet and facilitate the activities and access of its users. But, to grow the growth of e-books to be more explosive and even sales, e-books need something new and courageous to start their sales as well as an interesting and fun shopping experience. The e-book trend will continue

because of the competitive advantages of e-books such as time efficiency, flexibility in use, high quality and low cost.

In addition, the significant growth of internet users in Indonesia creates the prospect of selling digital books in Indonesia. Even so, national e-book sales in Indonesia are still minimal, which is only around 2 percent of the total circulating books in the country. This amount is very small compared to other countries such as Singapore which has e-book sales which have reached 17 percent of the total e-books that have been circulating [6]. The level of online purchase intention towards e-books also decreased by 33 percent, which is where in 2014 the e-book occupied 40 percent of the purchase interests most sought after by the online shop [7] and has decreased in 2016, where the purchase of e-books only attracted 7 percent of the public [8].

This proves that even though there is a decrease in purchase intention towards e-books, the public still has behavioral intention towards the use of e-books. Behavioral intention is an integration of attitudes and subjective norms regarding target behavior and estimating someone's actual behavior [9]. A person's desire to do an action can be seen through his behavioral intention. In this study, behavioral intention can be an important factor in increasing the desire of users to adopt and continuously read e-book. Behavioral intention is the most important factor that influences a person's actual behavior. [10]

Technological developments shape the social tendencies of young people as well as what happened to generation Y or which is called as the millennial generation, which dominates young people today. One characteristic of the millennial generation is that they are very familiar with the digital world. And they are the biggest users of social media. Millennials are known as a generation who love shopping. Millennials are often the target of marketing because they are very potential targets [11]. The number of millennials in Indonesia amounts are more than 33% of the total population of Indonesia in 2015. The number of millennials in Jakarta alone has reached more than 40% [12]. Millennials are people born in 1977 – 2000, they are also people of productive age and consumers who dominate the market today. The biggest market share for now and in the future is the millennial generation [13].

To determine the behavioral intention to adopt e-books on millennials, a preliminary test was conducted on 111 millennial people. The result is 88% of respondents have used books and 12% of respondents have never used e-books. Ironically, even though there were 98 respondents (88%) who had used e-books, there was a tendency to use CORE Metadata, citation and similar papers at core.ac.uk

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printed books compared to e-books. Of the 111 respondents, there were only 36 respondents (32%) who chose to use e-books and there were 75 respondents (68%) who chose to use printed books. Moreover, it is asked to 75 respondents (68%) who choose to use printed books rather than e-books, are they willing to try using an e-book or not. And there were 35 respondents (46%) who had the intention to try to use e-books, 32 respondents (43%) who might try to use e-books and 8 respondents (11%) who did not have the intention to use e-books. This shows that even though 75 respondents (68%) preferred to use printed books, the percentage of respondents who had the intention to try to use e-books was greater than those who did not intend to try using e-books. This shows that the adoption level of e-books on millennial is still relatively low, but the behavioral intention to use it in the future is potentially high.

The foundation of this research is UTAUT2 model (Unified Theory of Acceptance and Use of Technology 2). The model identifies the factors that influence the behavioral intention. In this research, other variables such as personal innovativeness of IT (PI), perceived costs (PC), environmental consciousness (EC) [14] are also added. The UTAUT model have 4 key variables, namely performance expectancy (PE), effort expectancy (EE), social influences (SI), facilitating conditions (FC) [15]. Three more constructs were then added to the UTAUT2 model, namely hedonic motivation (HM), price value (PV), and habit (H). According to [16], UTAUT2 increases the application of UTAUT from the organizational context to consumers. [17] summarizes some previous researches that discuss on the applications of UTAUT, but from the list, it is known that there is no research that makes e-book as research objects with the UTAUT model. This indicates that it is needed to investigate it in the e-book context.

The importance of the UTAUT variables to be used in this research is also confirmed by the preliminary test result, which shows that there are 10 variables that affect the motivation and interest of someone who uses an e-book.

TABLE I. REASONTOUSEE-BOOK

Answers Frequency Variables Research

I can change and choose the fonts of letters in the e-book according to my preference

19 times Hedonic Motivation The e-book innovation in PDF

form can be accessed anywhere and anytime via electronic devices

47 times

Personal Innovativeness

of IT The environment around me

supports the use of e-books 23 times

Social Influences I don't need to use the internet to

access e-books 30 times Perceived Costs

E-books are considered environmentally friendly because they are not printed

29 times Environmental Consciousness E-books make it easy for me in

the process of learning and reading

37 times Performance Expectancy It is easy to use e-books 30 times Effort

Expectancy E-books are compatible with the

technology that I use 29 times

Facilitating Conditions E-books prices are affordable 28 times Price Value I am used to using e-books 15 times Habit

Added by Poon [14] and [16], there are 10 aspects of motivation and interest in using e-books, which has been mentioned above. PI refers to innovative individuals who have a better intention to adopt new innovations in the IT field [18]. Individuals who have their own personal intention will adopt a PI higher than other individuals. Furthermore, PC in a service is a combination of the benefits of using these services in determining the overall service value which will ultimately affect technology adoption [19]. Moreover, a consumer who is more aware of the seriousness of the environment will produce an EC and an ecological desire to adopt products or services that are environmentally friendly and support the business of environmental products [20], where the use of e-books is also related to reducing paper use that has an impact on the environment.

From the description above, the objective of this research is to determine the effect of UTAUT2 factors (PE, EE, SI, FC, HM, PV, H, PI), PC, and EC toward behavioral intention to adopt e-books on millennials in Jakarta, either simultaneously or partially.

II. METHODOLOGY

The research method of this study is to use the SEM-PLS method to process questionnaire data that has been distributed to 200 millennial respondents in Jakarta who have used e-books, with the operationalization of the following variables:

TABLE II. OPERATIONALIZATIONOFVARIABLES

Variables Dimensions Indicators

PE Useful E-books are useful for everyday

life Increase My Productivity

Using e-books increases productivity

More Quickly E-books help to read faster

EE Skilfully Skilled in utilizing e-books is easy for me

Find That Using is Easy

Using the e-book is easy

Easy to Learn Learning how to use an e-book is easy

Interaction My interaction with the e-book is clear and easy to understand

SI People Who

Influence User’s Behavior

People whose opinion I listen to, tell me to use e-book

My inner circle tell me to use e-book

Close Related Person

I will use an e-book if my friend or co-worker uses it

FC Knowledge I have the knowledge needed to use an e-book

Resource I have the facility to use an e-book The e-book that I use is compatible with the technology that I use Assistance I got help when I found it difficult

to use an e-book

Support My university or office supports the use of e-books

HM Fun Using an interesting e-book

Enjoyable Using the e-book is fun Very

Entertaining

Using e-books is very entertaining

PV Reasonably

Priced

The use of e-books is quite affordable

The e-book price is worth it Good Value

for Money

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H Habit of Use Different Channels

I am used to read e-book

Using e-book is a familiar thing for me

Frequency of Use Different Channels

I have to use an e-book I am used to using e-books

PI Curiosity If I hear about new technology, I will look for it and try it, like an e-book

Innovativeness Level

I am ahead of my friends in terms of trying new technologies, such as e-books

I like experimenting and trying new technologies, like e-books

PC Perceived

Monetary Costs

No additional fees are needed such as the internet in the use of e-books Perceived

Non-Monetary Costs

E-books have less damage than printed books

E-books are easier to store or maintain than printed books

EC Knowledge

and Awareness

The use of printed books adds to the effects of global warming. Therefore, I changed its use to an e-book

Attitude My habit to use e-book will help save the environment for future generations

Green Consumer

Value

I use e-book because it does not harm the environment

Environment Related Past Behavior

I have replaced the use of products for ecological reasons such as replacing printed books into e-books

BItAE Intention to

Use

I have the intention to use e-books in the future

Intention to Reuse

I will try to use e-books in the future

I have plans to use e-books frequently

Intention to Recommed

I would recommend other people to use e-books

III. RESULTANDDISCUSSION

Of the total 221 respondents who filled out the questionnaire, there were 203 respondents (92%) who had used e-books and there were 18 respondents (8%) who never used e-books. However, of the 203 respondents who had used e-books, there were 3 respondents who were not in the millennial age category. So the number of respondents who have used e-books and millennials is 200 respondents. This also shows that there are millennials in Jakarta that have never used e-books. Then for the next data processing, only respondents who have used e-books will be used.

From gender profiling, respondents of e-book users in this study were almost balanced between male respondents and female respondents. The number of female respondents is 104 respondents (52%) and the number of male respondents is 96 respondents (48%).

Of the 200 respondents who used e-books and millennials, there were 4 age categories of respondents who were dominated by respondents aged 17-22 years which amounted to 96 respondents (48%). The rest, respondents aged 23-28 years amounted to 46 respondents (23%), respondents aged 29-34 years amounted to 38 respondents (19%), and respondents aged 35-40 years amounted to 20 respondents (10%). This shows that young millennials tend

to be more familiar with reading e-book than older age groups.

The test results of the outer model show that there are five indicators that have loading factor values below 0.70, namely SI3, FC1, FC4 and FC5, and PC1. Therefore, after retesting by removing the five indicators, the research model on the worksheet in the Smart PLS 3.0 software, the following results are obtained that can be shown from Figure 1 and Table III.

Fig. 1. Research Result Using SEM-PLS

TABLE III. RESEARCHRESULT1 Original Sample (O) Sample Mean (M) Standard Error (STERR) T Statistics (|O/STERR|) P Values Behavioral Intention to Adopt E-Book 0,635 0,735 0,074 8,607 0,000

In determining the level of influence, the T statistical value will be compared with the T count value. This study uses a significant T table of 5% so that the T count value is 1.96. If the T statistical value shows a number greater than the T number value (1.96), then the results of the study will show that there is an influence with the magnitude of the effect indicated by the original sample value.

These results indicate that there are effects of performance expectancy, effort expectancy, social influences, facilitating conditions, hedonic motivation, price value, habits, personal innovativeness of IT, perceived costs and environmental consciousness to behavioral intention to simultaneously adopt e-books on millennials with the level of influence is 63.5% and the level of interest is 73.5%.

While, partially, the results of the PE, EE, SI, FC, HM, PV, H, PI, PC, EC of BItAE on millennials can be shown in the Table IV below.

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TABLE IV. RESEARCHRESULT2 T Statistics (|O/STDEV|) P Values EE  BItAE 1.681 0.093 EC  BItAE 7.643 0.000 FC  BItAE 3.282 0.001 H  BItAE 1.136 0.257 HM  BItAE 2.742 0.006 PC  BItAE 0.477 0.633 PE  BItAE 1.264 0.207 PI  BItAE 0.167 0.867 PV  BItAE 0.100 0.920 SI  BItAE 1.189 0.235

Table IV indicates that partially, the BItAE is only influenced by the variables FC, HM, and EC, as can be seen in the Figure 2 below.

Fig. 2. Research Result 3

BItAE on millennials is not partially affected by all variables. But only partially influenced by FC, HM, and EC and not partially influenced by the variable PE, EE, SI, PV, H, PI, and PC. It is also known that EC is the most influential variable towards BItAE. This indicates that millennials who use e-books are basically driven by their green behavior more than any other reason.

This is in line with previous research, where FC proved to have an influence on the behavior intention by [21], [22], [23], and [24]. Then, hedonic motivation that influences the intention behavior is also in line with the research of [25], [26], [27]. Furthermore, the results of research that show that there are influences from the EC on the behavior intention are in line with the research of [28], [29], [30], and [31].

FC show that the millennial generation's trust or confidence in using e-books is in the system or technical that supports their use and the role of the surrounding environment in supporting the use of e-books [17] such as knowledge in book usage, facilities support the use of e-books, technology compatible with those used, assistance

when having difficulties in using e-books and universities or offices that support the use of e-books. FC affect the BItAE because millennial generations are people who are accustomed to ease and speed. [32] states that millennials are known to be lazy to read books because they are more inclined to like efficiency, so the use of e-books is an alternative that is sought after by millennials. They do not need to read all parts of the book and can directly quote through text search. This is in line with the designation that is often given to millennial generations, namely the generation that cannot be separated from gadgets because with the use of gadgets, all are easy to use and access as technology advances increasingly.

HM shows that someone who feels pleasure or pleasure originating from the use of a technology [33] such as the use of e-books that are fun, interesting and entertaining will have a direct impact on the BItAE. With the development of increasingly advanced technology, many millennials are given the convenience of the sophistication of these technologies which makes them easy to find and access anything through their gadgets.

EC arises when someone has an awareness of the environment and has an ecological desire to buy or use environmentally friendly products and services [20], such as awareness of global warming, awareness to save the environment and awareness to use and replace products which does not endanger the environment. Quoted from [34] that the millennial generation shows that they are a generation that cares about the environment and supports the use of green products. The survey conducted by the Study Finds in 2017 shows that, from a survey of 1000 millennials, it was found that 76 percent of millennials were concerned about climate change in their lives and 82 percent of millennials were concerned about these changes that would affect children their children. Based on [35], an expert Harrirs Thajeb as Chairman of Dentsu Aegis Network Indonesia stated that the issue of "Go Green" is now a concern of the millennial generation. Millennial attention is focused on various brands and products that are more concerned with the environment created through a variety of technologies that are applied to marketed products. Millennial generation participation is proven on Facebook page WWF Indonesia where followers from Facebook WWF Indonesia are millennial generation young people. Therefore, the use of e-books was chosen by the millennial generation because of their awareness and concern for the surrounding environment.

So, it is important for e-book businesses to focus more on these three variables rather than other variables, in order to increase millennials’ behavioral intention to adopt e-books. Then it can be concluded that the role of the FC, HM, and EC variables on BItAE is that the millennial generation likes e-books because they do not need to carry books, can do text search, make it easy to search and access through their gadgets, there is no need to photocopy the available material, their awareness and concern for the environment.

IV. CONCLUSIONANDSUGGESTION

The conclusion of this study is that there are influences of of UTAUT2 factors (PE, EE, SI, FC, HM, PV, H, PI), perceived costs (PC) and environmental consciousness (EC) affecting behavioral intention to adopt e-books (BItAE) on millennials. simultaneous with an influence level of 63.5%

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and an interest rate of 73.5%. Then, partially, the BItAE is only influenced by facilitating conditions (FC), hedonic motivation (HM) and environmental consciousness (EC) and is not influenced by other variables.

For this reason, it is recommended that e-book businesses to provide more complete types of e-books to meet millennial needs, especially students, provide easy access to using e-books, continue to support the use of environmental products, and collaborate with schools and university to provide special applications to access e-books. While, for further research, it is suggested to investigate the UTAUT2 model in more specific category of e-book, such as educational book, business book, fashion and beauty e-book, etc., because the readers of each category may have different behavior that cannot be generalized.

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