Factors affecting consumers purchase intentions for digital news : A quantitative study of Resumé

Abstract: Companies providing digital news are today struggling with low purchase intentions among their consumers. Over the years, the Internet has become a vital part of how people consume news, and the growth in online consumption has led to a decline in printed circulation. Newspapers all around the world are earning only the minor share of their total revenue from digital operations. The main purpose of this study is to investigate the effects of perceived ease-of-use, perceived usefulness, trust, reputation, word-of-mouth, and willingness to customize on consumer´s purchase intentions for digital news. This study aims to answer to the following research question:   What kind of effects do perceived ease-of-use, perceived usefulness, trust, reputation, word-of-mouth, and willingness to customize have on consumers purchase intentions for digital news?   In order to answer our research question, we have conducted a quantitative survey that was directed towards the subscribers of Resumé, the leading Scandinavian business magazine in the area of marketing and advertising. Currently, Resumé is struggling with earning money from their digital content and their practical problem provided us with a great opportunity to contribute to the field of research about digital purchase intentions.   Purchase intentions are an indicator of a consumer´s approach towards a purchase and prior studies demonstrates that perceived ease-of-use and perceived usefulness, which constitute the Technology Acceptance Model (Davis, 1989), are cornerstones in order to predict online consumer behavior. In our study, we also consider willingness-to-customize, which has been found to be an important decision-making factor regarding digital purchase intentions. People’s perceptions of the trust and reputation of a company are also proven to be relevant factors when predicting online consumer behavior, which in turn can be influenced by the word-of-mouth from other consumers, friends and family. Based on our literature review, we can conclude that there is a research gap related to the examination of the effects of these specific factors on consumer´s purchase intentions for digital news.   The findings of our regression analyses, based on 234 responses we received through the survey, demonstrate that perceived ease-of-use, perceived usefulness, and word-of-mouth have positive significant effects on consumer´s purchase intentions for digital news. Based on these results, we have developed a revised conceptual model that includes the three factors that were proven to affect digital purchase intentions. Our study makes a theoretical contribution to the research field about digital purchase intentions and online consumer behavior. The study also provides managerial implications concerning how companies can enhance the digital purchase intentions among their consumers. We suggest the practical recommendations directed towards managers in the digital news business in general, and for the managers of Resumé in particularly.