Generational Dynamics and the Bandwagon Effect in Consumer Electronics E-Commerce

Abstract

Background: Online purchasing of consumer electronics has expanded rapidly, and differences between Generations X and Y, as well as social contagion phenomena such as bandwagoning and herding, may shape how consumers form online purchase intentions.

Purpose: To assess how microeconomic bandwagon/herding effects interact with social influence and effort expectancy, moderated by generational groups (Gen X vs. Gen Y), to shape online purchase intention for consumer electronics in an extended UTAUT framework.

Study design/methodology/approach: The authors modified the Unified Theory of Acceptance and Use of Technology (UTAUT) and have implemented Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) to validate the research model as well as to research the generational groups' influence. Furthermore, the authors imposed the microeconomic theoretical bandwagon effect and herding behavior to clarify if there are statistically significant results in the e-commerce landscape for consumer electronics products.

Findings/conclusions: The paper's major findings showed a direct and indirect (via effort expectancy) social influence on Generation X’s consumer intention to purchase consumer electronics products online. However, such influence was not identified for Generation Y, suggesting that e-commerce forms a stronger bandwagon effect on the generation that was not born with the e-commerce technology, unlike Generation Y.

Limitations/future research: The limitations of the paper are seen in the unequal generational groups' data size. The potential for further research is evident in capturing a longer time frame, conducting cross-cultural comparisons, and including new generational groups.