Journal of Services Marketing

Enhancing customers’ continued mobile app use in the service industry

Seonjeong (Ally) Lee,
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Seonjeong (Ally) Lee, (2018) "Enhancing customers’ continued mobile app use in the service industry", Journal of Services
Marketing, https://doi.org/10.1108/JSM-01-2017-0015
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 Enhancing customers’ continued mobile app use
in the service industry
Seonjeong (Ally) Lee
Kent State University, Kent, Ohio, USA

Abstract
Purpose – This study aims to empirically investigate ways to enhance customers’ continued mobile app use intention on the basis of information
adoption model.
Design/methodology/approach – This study conducted an online, cross-sectional, self-administered survey, recruiting mobile app users in the
USA.
Findings – Results identified both argument quality and source credibility positively influenced usefulness of branded apps and parasocial
interactions. Results also confirmed a positive influence on usefulness of the branded app and parasocial interaction relating to continued branded
app use intentions.
Originality/value – This study enriched the understanding of mobile app use behaviors, extending information adoption model in the service
industry.
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Keywords Usefulness, Argument quality, Mobile marketing, Parasocial interaction, Information adoption model, Source credibility,
Continued mobile app use intention
Paper type Research paper

Introduction Near Field Communication (NFC). NFC is a technology that

provides mobile devices with wireless, two-way and short-range
The rapid growth of mobile technologies results in the connectivity. QR codes enable customers to pay in a contactless
proliferation of various types of mobile applications (hereafter, way (Zhao et al., 2015).
apps; Kim et al., 2015). Over 25 billion iOS apps and 50 billion Development of mobile technology fosters interactive brand–
Android apps were downloaded in 2015 (Dogtiev, 2015). customer relationships (Shankar and Malthouse, 2007). The
Responding to customers’ needs, different segments of the exponential growth of mobile technology leads to a mobile
service industry, including financial services (Ravuri, 2016), marketing platform known as “brand in the hand” (Sultan and
retailing (CRR, 2015), the tourism industry (Oh, 2014) and the Rohm, 2005). On the basis of customers’ increased level of
hotel industry (Davidson, 2017), shifted to the mobile era. For engagement with mobile devices in their daily activities, service
example, an eMarketer’s (2015) report noted 51.8 per cent of organizations develop branded apps as an essential marketing
travelers who booked trips via digital channels used mobile communication channel to attract new customers and enhance
devices and 0.75 billion airline boarding passes were delivered customers’ brand loyalty (Wang et al., 2016). Branded apps
via a mobile phone, increasing to 1.5 billion passes by 2019 refer to “software downloadable to a mobile device which
(Statistia, 2017). prominently displays a brand identity, often via the name of the
Mobile marketing explains how customers access app and appearance of a brand logo or icon, throughout the
information through personal, mobile devices, which enable user experience” (Bellman et al., 2011, p. 191).
them to receive personalized messages (Chou et al., 2015). It Despite the increased role of the branded apps and their
refers to “the two-way or multi-way communication and potential impacts in the service industry, there is a dearth of
promotion of an offer between a firm and its customers using a research on continued branded apps use as a persuasive
mobile medium, device, or technology” (Shankar and communication channel (Kim et al., 2015). Given managerial
Balasubramanian, 2009, p. 118). Mobile marketing started needs and prevalence of mobile technology, scholars (Hsiao
with the Short Message Service (SMS) for advertising purposes et al., 2016; Ozturk et al., 2016a) call for more research
(Amirkhanpour et al., 2014). Potential customers received text investigating how mobile technology is used in the service
messages related to deals and promotions through SMS industry, and the role of the branded app on customer behavior
(Pantano and Priporas, 2016). Mobile marketing expanded to (Bellman et al., 2011; Kim et al., 2015). Previous research on
mobile apps for smart phones, Quick Response (QR) codes and mobile marketing focuses on adoption intentions toward
mobile technology (Muk and Chung, 2015; Park and Kim,
The current issue and full text archive of this journal is available on 2014; Slade et al., 2015). However, understanding customers’
Emerald Insight at: www.emeraldinsight.com/0887-6045.htm continued mobile app use behavior is a complex process that

Received 17 January 2017

Journal of Services Marketing Revised 25 August 2017
© Emerald Publishing Limited [ISSN 0887-6045] 15 January 2018
[DOI 10.1108/JSM-01-2017-0015] Accepted 19 April 2018
 Customers’ continued mobile app use Journal of Services Marketing
Seonjeong (Ally) Lee

requires sophisticated investigation beyond the technology Oriental Hotel’s app enables customers to use an interactive 3-
adoption process (Ozturk et al., 2016b). D global view and local city guide (Weissman, 2013). With
While adoption models, such as technology acceptance these various technology options, a branded app in the hotel
mode (TAM), theory of reasoned action (TRA) or theory of industry provides mobile concierge (e.g. local restaurant
planned behavior (TPB), are useful in understanding how reservations, attraction information, etc.) and service request
customers’ behavioral intentions toward a technology are functions to customers (e.g. housekeeping service, late check-
formed, these models do not examine the persuasive process of out request, etc.; Law et al., 2015).
the technology. Even though initial acceptance of technology is The prevalence of mobile devices fundamentally
important, acceptance does not guarantee continued use transformed operational practices and customers’ experiences
(Hsieh et al., 2008). Customers do not automatically use in the hotel industry (Ozturk et al., 2016b). Hotels use mobile
branded app activities because it is in a “pull” format; meaning devices to provide personalized services to customers (Ozturk
customers only engage with an app when they actually want to et al., 2016a) and enhance customer loyalty (Berman, 2017).
use it (Bellman et al., 2011). For instance, most mobile app For instance, customers’ preferences are stored via branded
users download travel apps; however, almost half of those apps apps to sustain their relationships. However, mobile marketing
are deleted later (Linton and Kwortnik, 2015). This study takes requires a customer’s agreement before delivering any
the information adoption model (IAM) as a theoretical lens to marketing activities (Im and Ha, 2013). Thus, it is important to
examine the dual-routes of communication for continued use understand what factors influence customers’ continued
behaviors of a branded app in the context of the hotel industry. mobile app use behaviors.
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IAM explains the dual-process of persuasion on customers’

attitudes and behaviors (Sussman and Siegal, 2003), proposing Information adoption model
both central cue (argument quality) and peripheral cue (source Theoretical underpinnings on mobile technology research
credibility) of technology. In particular, this study investigates include TAM (Park and Kim, 2014), TPB (Khalifa et al.,
relationships among argument quality, source credibility, 2012), innovation diffusion theory (Lopez-Nicolás et al., 2008)
usefulness, parasocial interaction and continued branded app and unified theory of acceptance and use of technology (Slade
use intentions. This study enriches IAM by incorporating a et al., 2015). The adoption models, such as TRA and TAM,
relation-related factor and applying IAM to branded app assume customers’ adoption intentions are based on what
situations in the service industry. Results also provide customers expect after they adopt the technology (Filieri and
suggestions to managers in the service industry, showing how to McLeay, 2013). Wang and Wang (2010) argue existing
encourage customers’ continued mobile app use behavior. technology adoption models are not enough to comprehend
customers’ behavioral intentions toward mobile apps. Leisure
Literature review and business travelers may consider additional factors before
they decide to use the mobile hotel app (Wang and Wang,
Customer relationship management via branded apps 2010). Therefore, this study applies IAM, which investigates
Sustaining and creating customer loyalty helps organizations the persuasiveness of the branded app extending beyond the
develop long-term relationships with customers (Pan et al., formation of behavioral intentions (Sussman and Siegal, 2003).
2012). Mobile marketing promotes relationships between The original IAM explains argument quality and source
customers and service providers, enhancing customer credibility influence information usefulness, which further
relationship management (CRM). CRM is derived from influences information adoption behavior. The IAM is
relationship marketing, serving as the key area of services developed based on the TAM (Davis, 1989), TRA (Fishbein
marketing (Sheth and Parvatiyar, 2002). CRM is a and Ajzen, 1975) and dual-process models of informational
comprehensive strategy, integrating the marketing, sales and influence (Petty and Cacioppo, 1986). When customers are
customer service of an organization to create and deliver value motivated to cognitively process information, they engage in
to customers (Navimipour and Soltani, 2016). Owing to severe central route processing. On the other hand, when customers
competition, hotels attempt to improve the quality of their have low motivation and little knowledge to process
services to gain new customers (Wu and Lu, 2012). CRM in information, they engage in the peripheral route of processing
the hotel industry not only focuses on identifying and retaining (Bhattacherjee and Sanford, 2006). According to IAM,
loyal customers, but also improves the profitability of less loyal argument quality serves as an important central cue in the
customers (Rahimi and Gunlu, 2016). persuasive process (Bhattacherjee and Sanford, 2006; Li,
Mobile apps provide innovative CRM practices because they 2013). In addition, source credibility is a peripheral cue in the
develop new consumption habits in customers’ daily lives. A persuasive process (Bhattacherjee and Sanford, 2006; Li,
branded app builds strong relationships with customers 2013). The dual-process of persuasion leads to users’
(Watson et al., 2013). Bellman et al. (2011) support persuasive information adoption behaviors (Sussman and Siegal, 2003)
effects of branded apps, which influence the favorability of and continued use behaviors (Hur et al., 2017).
brand attitude and purchase intention. By logging in with a Owing to the high abandonment rates of mobile apps,
branded app, customers engage in multiple touch points with understanding factors that influence customers’ continued
the brand. It allows customers to share information, engage mobile app use behavior is critical for the success of mobile
various contents and make purchases (Wang et al., 2016). For marketing (Shankar and Balasubramanian, 2009). Researchers
instance, Ritz-Carlton’s mobile app provides special digital advocate the importance of information system continuance as
experiences related to the particular hotel location through a continued information system use is central to the survival of
built-in QR code reader (Weissman, 2013). The Mandarin organizations (Bhattacherjee and Sanford, 2006; Hur et al.,
 Customers’ continued mobile app use Journal of Services Marketing
Seonjeong (Ally) Lee

2017; Kim et al., 2016). Scholars (Kim et al., 2015) call for When a branded app is valuable to use, it was observed that
more research on factors that influence continued app use customers had better evaluations toward the app. Bellman et al.
intention. Increasing app recency, the duration (e.g. the number (2011) confirmed informational style encouraged generation of
of days) a customer has not accessed the app, indicates a sign of personal connections with the brand and showed more
negative effects to the company (Kim et al., 2015). Kim et al. advertising effectiveness. Kim et al. (2013) also identified
(2015) identifies discontinued use of a brand’s app hurts brand informational message strategies were used more in service
sales. Therefore, this study focuses on the continued branded branded apps than in product branded apps. In addition, it was
app use intentions, which refer to the likelihood of customers’ assumed when a mobile app provided quality service customers
continued use of a branded app. were more likely to have enhanced feelings of PSI. Motivation
The IAM explains general motivations for users’ intention to was central to PSI, as different motivations led to various
use technology, based on the dual-routes of persuasion process communication choices and behaviors (Rubin and Step, 2000).
(Jin et al., 2009). IAM applies to different technological Previous studies identified social media users’ motivations for
applications to explain how people process and adopt using media positively influenced PSI (Joinson, 2008; Yuan
information, such as the information system (Li, 2015), social et al., 2016). In the context of mobile technology, Hur et al.
media (Teng et al., 2014), travel websites (Tseng and Wang, (2017) identified argument quality positively influenced
2016) and online reviews (Zhang et al., 2014). Depending on
relationship maintenance motives, along with information
the research context, different variables are incorporated in
seeking motives and entertainment motives. In line with IAM
IAM to better understand the persuasiveness of technology.
and previous research, this study proposed positive effects of
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Previous research includes playfulness (Li, 2015), site

argument quality on usefulness and customers’ relationships
attachment (Kim et al., 2016) and preference (Chang et al.,
with the brand.
2015) into the IAM model. For instance, Jin et al. (2009)
incorporates disconfirmation of information quality, H1. Argument quality has positive effects on usefulness of
disconfirmation of source credibility and satisfaction into IAM the branded app.
to examine continued intention to use a computer-supported
social network. H2. Argument quality has positive effects on customers’
As this study focuses on branded apps in the service industry, feelings of PSI.
a relationship-relevant variable is included in the model to
better understand IAM in such contexts. One unique Source credibility
characteristic of the service industry is intangibility, where The source credibility of the branded app is an important
inherent risks are high and relationship building is important peripheral cue. Source credibility refers to “the perceived
owing to the person-based business (Weathers et al., 2007). ability and motivation of the message source to produce
Therefore, this study includes parasocial interaction (PSI) accurate and truth information” (Teng et al., 2014, p. 748).
because developing an interaction is important owing to
Source credibility explains whether users perceive an
competitive markets in the service industry. PSI refers to
information source as believable, competent and trustworthy
media-enabled connections between users and media
(Gunawan and Huarng, 2015) through expertise,
personalities (Rubin and Step, 2000). Such interactions allow
trustworthiness and attractiveness (Teng et al., 2014). Source
users to enjoy interpersonal relationships with their media,
credibility is more influential for weak arguments and/or
enhancing the relationship between customers and brand.
customers’ low involvement conditions; however, argument
quality is more persuasive for object-relevant arguments, such
Hypotheses development
as product-relevant attributes when customers are highly
Argument quality
involved (Li, 2013).
The argument quality of the branded app serves as a central
In mass communication contexts, source credibility
cue. Argument quality refers to “the persuasive strength of the
determines audiences’ attitudes toward mass media sources
arguments embedded in an information message”
(Hovland et al., 1953). Previous studies identify source
(Bhattacherjee and Sanford, 2006, p. 811). Argument quality is
based on customers’ rational and cognitive judgment credibility influences customers’ attitudes (Ayeh, 2015),
(Bhattacherjee and Sanford, 2006) and is validated through persuasive messages (Teng et al., 2014) and perceived
comprehensiveness, accuracy and relevance of the information usefulness (Ayeh, 2015). In addition, source credibility
(Delone and McLean, 2003). People are involved in thoughtful influences feelings of interaction, such as PSI (Yuan et al.,
processing for persuasive arguments to generate their own 2016). Celebrity source credibility (Ohanian, 1990), media
thoughts (Hur et al., 2017). Such argument quality is features and customer characteristics (Kim and Rubin, 1997)
associated with task-related or functional information, serving influence PSI. Yuan et al. (2016) identified source credibility
as an important central cue for customers’ purchase decisions also influenced PSI, which further influenced attitude and
(Zhu et al., 2016). Argument quality plays an important role in customer equity drivers in a social media context. Hur et al.
information technology (Kim et al., 2016), since it influences (2017) identified source credibility positively influenced
customers’ trust (Filieri et al., 2015), persuasive messages different customers’ motives, such as information seeking
(Teng et al., 2014) and usefulness (Cheng and Ho, 2015). If a motives, entertainment motives and relationship maintenance
mobile app is perceived as effective, users develop a positive motives in the context of travel-related social media. Therefore,
attitude toward the mobile app and vice versa (Cheung et al., positive customer evaluations are predicted when the branded
2009). app includes source credibility. Applying the role of source
 Customers’ continued mobile app use Journal of Services Marketing
Seonjeong (Ally) Lee

credibility in a branded app context, the following hypotheses strong emotional attachments toward the brand. Many brands
are proposed: aim to emphasize the interactive experience between customers
and mobile apps (Bellman et al., 2011). For instance, Zhu et al.
H3. Source credibility has positive effects on usefulness of (2016) identified the role of relationship type on customers’
the branded app. product usefulness evaluation. They investigated tie strength as
H4. Source credibility has positive effects on customers’ a form of relationship type. Previous research identified the
feelings of PSI. positive role of PSI on customers’ responses. For instance, PSI
positively influences customers’ loyalty intentions (Labrecque,
2014) and customer equity drivers (Yuan et al., 2016). Thus,
Usefulness of the branded app
this study predicts PSI plays a positive role in the context of
Perceived usefulness is an important determinant in
branded apps, proposing the following hypotheses:
information system use (Adams et al., 1992). Usefulness refers
to whether potential users expect benefits when using an H6. Customers’ feelings of PSI positively influence usefulness
information technology system for their task performance of the branded app.
(Davis et al., 1989). According to the IAM, usefulness plays an
important role between central and peripheral cues of H7. Customers’ feelings of PSI have positive effects on their
persuasive information and information adoption behavior continued mobile app use intentions.
(Zhu et al., 2016). In a mobile app context, characteristics of
the branded app help customers evaluate the usefulness of a Continued mobile app use intentions
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mobile app, such as whether the mobile app is worth using in On the basis of attitude theory (Ajzen, 2002), continued mobile
the service delivery process. For instance, Kim et al. (2016) app use intentions explain the likelihood of using a mobile app
identified the positive relationship between usefulness and over service staff during the service delivery process. Owing to
continuing usage of mobile tourism shopping. Since the the predictive power of behavioral intentions, use intentions are
branded app is expected to include useful features in making one of the important concepts in information systems and
customers’ use behaviors, this study predicts a positive effect of marketing literature (Davis, 1989; Hur et al., 2017). Behavioral
usefulness on continued mobile app use intentions. Based on intention refers to a person’s subjective probability to carry out
IAM and previous research, the following hypothesis is a specific action (Ajzen and Fishbein, 1980). Previous research
proposed in the context of a branded app in the service (Venkatesh and Davis, 2000) identified that intention serves as
industry. a major determinant on actual behavior. Even though mobile
phones are ubiquitous, not many customers experience a
H5. Usefulness positively influences customers’ continued
branded app in the service industry because they are considered
mobile app use intentions.
in infancy stage. Thus, investigating customers’ continued
mobile app use intention is a desirable approach, allowing a
Parasocial interaction timely investigation of customers’ perceptions toward mobile
Horton and Wohl (1956) proposed the idea of PSI, which app use.
explains a face-to-face interaction that occurs between media On the basis of the above discussions, Figure 1 describes the
characters and their audience (Ballantine and Martin, 2005). hypothesized relationships. The proposed conceptual model is
PSI is a social interaction rather than personal, owing to useful in understanding and predicting customers’ continued
proximity, similarity and attraction characteristics (Wohlfeil branded app use behavior.
and Whelan, 2012). PSI refers to an imaginary social
relationship (Cohen, 2004), an illusion of a face-to-face
relationship (Horton and Wohl, 1956) and an interpersonal
Methodology
interaction between media user and the consumed media Study context
(Schramm and Wirth, 2010). The hotel industry serves as the study context. Mobile
Branded apps provide a “pull” marketing opportunity technology is “new buzz” in the hotel industry as more
delivered via a mobile platform where customers develop customers attempt to use mobile apps for their service delivery

Figure 1 Proposed framework

H1

Argument quality Usefulness

H2 H5
Continued use
H6 intentions
H3

H7
Parasocial
Source credibility interaction
H4
 Customers’ continued mobile app use Journal of Services Marketing
Seonjeong (Ally) Lee

process (Rudra, 2016). With mobile technology emerging as a for data collection. The professional online research company,
major distribution channel, understanding factors that Qualtrics, was hired to collect data. On the basis of the
influence customers’ continued mobile app use intentions in convenience sampling method, an invitation email was sent to
the hotel industry becomes vital (Ozturk et al., 2016a). Features consumer panel members of the online research company, who
of a hotel app offer hotel information and services (e.g. location, were over 18 years old and represented the general population
amenities and facilities), enabling customers to customize their of the USA. Among those members, those who had stayed at a
service and update their preferences (Ozturk et al., 2016b). hotel in the previous 12 months and used a hotel mobile app in
Accordingly, it is expected that hotel apps will play a key role, the past 12 months were qualified to participate in the survey.
not only in distribution of rooms, but also in strengthening A total of 350 surveys were collected within a week; however,
customer relationships and brand loyalty (Anuar et al., 2014). 15 surveys were excluded from analysis owing to incomplete or
The nature of the service industry involves interactive invalid responses. This study aimed to collect 300 responses
processes between customers and service providers, which based on the rule of thumb for the sample size requirement of
require customers to coproduce services (Verleye, 2015). structural equation modeling (SEM). The required sample size
During the service delivery process, customers decide to use was based on 10 responses per one variable or 5 to 10
mobile apps or interact with service staff for a similar service observations per estimated parameter to apply SEM for the
outcome. For example, hotel customers are encouraged to data analysis (Bentler and Chou, 1987). A total of 335 surveys
coproduce their service delivery process for check in/out on were used for data analysis, which was enough to apply the
behalf of service representatives by using their app. In addition, SEM.
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the hotel industry is in an early stage of implementing mobile

apps into the operational process; therefore, they need to Data analysis
understand how to promote customers’ continued mobile app Data were analyzed using the LISREL 8.80 structural equation
use behavior to garner a better return on investment. analysis package (Jöreskog and Sörbom, 1989) based on
Anderson and Gerbing’s (1988) two-step approach –
Survey development confirmatory factor analysis (CFA) and SEM. Before
The online survey included five parts: screening questions, conducting the two-step approach, initial data analysis was
previous mobile app experience, argument quality and source
conducted. Non-response bias analysis was conducted since
credibility, usefulness, PSI and continued mobile app use
this study used a self-reported online survey. Early responses
intention and respondents’ background questions. The survey
were compared with later responses (Ary et al., 1996) and no
began with two screening questions asking whether:
significant differences were identified; thus, non-response bias
1 respondents stayed at a hotel within the previous 12
was not an issue in this study. Normality was also checked
months; and
based on the results of skewness and kurtosis values. Values of
2 they used a hotel app during their hotel stays within the
skewness and kurtosis were between -2 and 12, representing an
previous 12 months.
acceptable range (Hair et al., 2010). In addition, the Kaiser–
Once these two qualification questions were met, respondents Meyer–Olkin (KMO) test and the Bartlett’s Test of Sphericity
were asked to provide the hotel app they used to recall their were used to measure sampling adequacy. The value of the
memories. To control the quality of responses, five validation KMO value was 0.958 and the significance of the Bartlett’s
questions were included throughout the survey. Validation Test of Sphericity was 0.00, indicating the suitability of factor
questions, such as “click strongly agree to proceed with the analysis (Hair et al., 2010).
survey”, were included to ensure respondents carefully read An exploratory factor analysis was conducted to examine the
survey questions before answering. Respondents who answered underlying factor structure of the construct as measurement
the qualification and validation questions correctly were items were modified based on the study context (e.g. the hotel
included in the data analysis. industry). Three measurement items from PSI were eliminated
A seven-point, Likert-type scale (1= strongly disagree to 7= owing to cross-loadings and ambiguity. Moreover, a CFA of all
strongly agree) was used in the survey. Measurement items were items loading on a single latent factor was performed to rule out
adapted from previous studies to ensure validity and reliability common method bias (Podsakoff et al., 2003). Results of the
issues. Measurement items of argument quality were measured CFA with a single factor indicated a poor fit compared with the
with three items, adopted from Chang et al. (2015) and multi-factor models; thus, common method bias was not an
measurement items of source credibility were measured with issue in this study.
three items adopted from Li (2013). Items of usefulness, PSI
and continued mobile app use intentions were from Gao et al.
Results
(2013), Labrecque (2014) and Ayeh (2015), respectively.
Items of usefulness included three items, PSI included six items Sample characteristics
and continued mobile app use intentions included three items. Almost half of the respondents were female (50.7 per cent). A
majority of respondents were between 25 and 34 years of age
Data collection (37.9 per cent), followed by 35 and 44 years (25.1 per cent) and
A pilot test was conducted with 60 students enrolled in a mid- 19 and 24 years (14.3 per cent; see Table I). Respondents had
western university. Minor adjustments were made to the survey hotel app experiences with different brands, including Marriott
to improve flow and clarity based on results from the pilot test. (n = 120), Hilton (n = 60), Hyatt (n = 28), Intercontinental
After the pilot, a Web-based, self-administered survey was used (n = 54), MGM Resorts (n = 5), Omni (n = 7), Choice Hotels
 Customers’ continued mobile app use Journal of Services Marketing
Seonjeong (Ally) Lee

Table I Respondents’ background (N = 335) the structural model were x 2 (82) = 158.92; p = 0.00; x 2/df =
1.93; NFI = 0.98; NNFI= 0.99; IFI= 0.99; CFI = 0.99; GFI =
Characteristic Frequency (%)
0.94; SRMR= 0.035; and RMSEA = 0.053.
Gender The proposed hypotheses were investigated based on the
Female 170 50.7 results of the SEM (see Table IV). Argument quality positively
Male 165 49.3 influenced usefulness of the branded app ( b = 0.43, p < 0.00)
Age
and feelings of PSI ( b = 0.20, p < 0.05), supporting
18-24 years old 48 14.3 Hypotheses 1 and 2. The effects of argument quality on
25-34 years old 127 37.9 customers’ responses were consistent with previous research
35-44 years old 84 25.1 (Cheng and Ho, 2015; Teng et al., 2014). Source credibility
45-54 years old 45 13.4 also positively influenced usefulness of the branded app ( b =
55-64 years old 22 6.6 0.20, p < 0.05) and feelings of PSI ( b = 0.75, p < 0.00),
65 years and older 9 2.7 supporting Hypotheses 3 and 4. Consistent with previous
research (Ayeh, 2015; Teng et al., 2014), results indicated a
Education positive influence of source credibility on customers’ responses.
High school 75 22.4 These findings confirmed that when customers perceived high
Associate degree 85 25.4 levels of argument quality and source credibility from a
Bachelor degree 125 37.3 branded app, they developed positive evaluations toward the
Master’s degree 42 12.5
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branded app.
Doctoral degree 8 2.4 Moreover, usefulness of the branded app influenced
Annual household income customers’ continued mobile app use intentions ( b = 0.37, p <
Under $50,000 84 25.1 0.00), supporting Hypothesis 5. Customers’ feelings of PSI
$50,000-$74,999 108 32.2 positively influenced usefulness of the branded app ( b = 0.24,
$75,000-$99,999 72 21.5 p < 0.00) and customers’ continued mobile app use intentions
$100,000-$124,999 31 9.3 ( b = 0.54, p < 0.00); thus, Hypotheses 6 and 7 were
$125,000-$149,999 22 6.6 supported. The impact of PSI on customers’ continued mobile
$150,000 and above 18 5.4 app use intentions showed a stronger path coefficient than the
path from usefulness of the branded app. This result supported
the importance of PSI on the branded apps, in addition to
(n = 19), Drury Hotels (n = 2), Red Roof Inn (n = 4), usefulness in the service industry. PSI promoted customers’
Wyndham (n = 20) and Best Western (n = 16). continued app use intentions in the service industry where
relationship building played a vital role in enhancing
Measurement model customers’ mobile experiences.
According to the results from the CFA, the goodness of fit
indices were x 2 (80) = 158.31, p = 0.00; x 2/df = 1.97; normed Discussion
fix index (NFI) = 0.98; non-normed fit index (NNFI)= 0.99; Mobile marketing strategies were based on how customers
incremental fit index (IFI)= 0.99; comparative fit index accessed information through mobile devices and interacted
(CFI) = 0.99; goodness of fit index (GFI)=0.94; standardized with a company (Chou et al., 2015). Previous studies
root mean square residual (SRMR)= 0.034; and root mean investigated mobile marketing by examining risk avoidance
square error of approximation (RMSEA) = 0.054. Results (Gao et al., 2013), personal traits (such as innovativeness)
indicated an acceptable value for each model fit index based on (Rohm et al., 2012), value co-creation (Morosan and
Bagozzi and Yi’s (1988) recommendation. Therefore, it was DeFranco, 2016), perceived value (Turel et al., 2007) and
concluded the measurement model fit well with the data. social influence (such as subjective norm; Ozturk et al., 2016b).
Results of CFA were used to evaluate construct reliability With the increased role of mobile marketing, little attention was
and validity. Convergent validity was investigated through paid to factors that promoted customers’ continued mobile app
factor loadings, average variance extracted (AVE), Cronbach’s use behavior and examined the persuasiveness of a branded
alpha and composite reliability (CR; see Table II). Factor app. Therefore, this study investigated important factors that
loadings exceeded the recommended level of 0.60; values of promoted customers’ continued mobile app use intention in
AVE were greater than 0.50; and values of reliabilities were the service industry.
close to 0.90 (Hair et al., 2010). In addition, discriminant As central and heuristic cues of the persuasion process, both
validity was investigated by comparing the squared correlations argument quality and source credibility of a branded app
between constructs and variance extracted from a construct. All positively influenced usefulness and feelings of PSI. Among
AVE estimates were larger than the corresponding squared those relationships, the strongest was between source
inter-construct correlation estimates, showing discriminant credibility and PSI, followed by the relationships between
validity (see Table III; Fornell and Larcker, 1981). argument quality and usefulness, argument quality and PSI
and source credibility and usefulness. The effects of argument
Structural model and hypothesis testing quality and source credibility were consistent with previous
SEM results confirmed an acceptable value for each model fit research. Jin et al. (2009) identified positive effects of argument
index (Bagozzi and Yi, 1988). The goodness-of-fit statistics for quality on information usefulness and positive effects of source
 Customers’ continued mobile app use Journal of Services Marketing
Seonjeong (Ally) Lee

Table II Measurement model results (N = 335)

Measurement items Mean (SD) SFL CR a
Argument quality 0.91 0.91
Using the branded mobile app is informative 5.80 (0.90) 0.89
Using the branded mobile app is valuable 5.80 (0.89) 0.88
Using the branded mobile app is helpful 5.56 (0.92) 0.72
Source credibility 0.90 0.90
Using the branded mobile app is trustworthy 5.57 (1.01) 0.81
Using the branded mobile app is credible 5.76 (1.00) 0.88
Using the branded mobile app appears to be an expert 5.68 (0.98) 0.91
Usefulness 0.90 0.90
Using the branded mobile app would be useful in requesting my service 6.12 (0.97) 0.85
Using the branded mobile app would make my hotel stay easier 5.90 (1.05) 0.92
Using the branded mobile app would be useful in meeting my needs 5.78 (1.06) 0.85
Parasocial interaction 0.89 0.89
Using the branded mobile app makes me comfortable, as if I am with a friend 5.39 (1.43) 0.84
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When I interact with the branded mobile app, I feel included 5.76 (1.19) 0.85
I can relate to the branded mobile app 5.74 (1.14) 0.88
Continued use intention 0.94 0.94
I intend to use the branded mobile app for the next time 4.55 (1.62) 0.92
I expect to use the branded mobile app in the future 4.72 (1.62) 0.97
I plan to use the branded mobile app in the future 4.67 (1.66) 0.89
SFL refers to standard factor loadings, and CR refers to composite reliability

research (Lee and Lee, 2017; Yuan et al., 2016), results

supported a positive influence of PSI on usefulness and
Table III Discriminant validity (N = 335)
customers’ continued mobile app use intention. Mobile
Constructs 1 2 3 4 5 technologies transformed the mobile device into an innovative,
1. AQ 0.85
powerful platform that engaged customers (Gao et al., 2013).
2. SC 0.46 0.88 As more customers adopted mobile technology, it became an
3. USE 0.35 0.35 0.84 indispensable distribution channel in the service industry. It
4. PSI 0.35 0.49 0.32 0.84 was imperative to understand key determinants of customers’
5. UI 0.14 0.18 0.18 0.20 0.80 continued mobile app use intentions. Success of information
Note: The values in italic represent the average variance extracted and the systems depended on customers’ continued use of technology,
values below represent the squared inter-construct correlations rather than initial acceptance (Bhattacherjee, 2001). Thus,
encouraging customers’ continued mobile app use intention
was a desirable marketing approach because the brand grew by
credibility on customer satisfaction in the context of a
increasing return on investment and attracting more customers
computer-supported social network.
to the business.
Interestingly, effects of argument quality on usefulness of the
branded app were stronger than those of source credibility.
Effects of source credibility on PSI were stronger than those of
Conclusions
argument quality. These results were owing to dual-routes of Theoretical contributions
the persuasion process (Sussman and Siegal, 2003). Argument This research developed and empirically examined a theoretical
quality was based on cognitive evaluation, whereas source model that investigated antecedents of customers’ continued
credibility was based on affective evaluation (Sussman and mobile app use intentions. Results demonstrated the IAM was
Siegal, 2003). Thus, the effects of each process were different. highly predictive of customers’ continued mobile app use
Results not only made comparisons between the systematic and intentions, examining the formation of customers’ continued
heuristic persuasion process toward the branded app, but also mobile app use intentions. Results of this research provided
contributed to mobile marketing research by examining the theoretical contributions to the mobile marketing in a general
dual-route of persuasive communications in enhancing context and to branded apps in a service industry context.
customers’ continued mobile app use intentions. This study contributed to previous mobile marketing
Moreover, usefulness of the branded app had significant research by providing a conceptual model that predicted
effects on customers’ continued mobile app use intention, customers’ continued app use intention in the service industry.
supported in the IAM and previous literature (Bhattacherjee While the importance of adoption and use behaviors is
and Sanford, 2006; Zhu et al., 2016). Consistent with previous recognized in mobile marketing (Muk and Chung, 2015;
 Customers’ continued mobile app use Journal of Services Marketing
Seonjeong (Ally) Lee

Table IV Structural model results (N = 335) Industry implications

Results suggest ways to gain competitive advantages for
Results of
branded app use in the service industry. As the mobile app is a
Standardized hypotheses
popular communication channel, understanding how and why
Structural paths path coefficients t-statistic testing
customers engage provides useful implications for service
H1: AQ ! Usefulness 0.43 ***
4.50 Supported businesses to gain competitive advantages (Tsiotsou, 2015).
H2: AQ ! PSI 0.20** 2.21 Supported More companies are adopting branded apps given the potential
H3: SQ ! Usefulness 0.20** 1.80 Supported advantages of adopting this technology (Jan and Contreras,
H4: SQ ! PSI 0.75*** 8.68 Supported 2011). For instance, Marriott implements a mobile request
H5: Usefulness ! Use 0.37*** 3.29 Supported function in its app, enabling customers to request service
intention before, during or after their hotel stay (Wolf, 2017). If the
H6: PSI ! Usefulness 0.24*** 2.85 Supported customer’s requested room is ready before check-in, the app
H7: PSI ! Use 0.54*** 4.88 Supported provides an automatic notification to the customer. Conard
intention Hotels’ app from Hilton serves as a full-service concierge. The
Notes: ***p < 0.01; **p < 0.05; NFI = 0.98; IFI = 0.99; CFI = 0.99; Conard Hotel app enables customers to customize and arrange
RMSEA = 0.048 their room service options, bath amenities and airport
transportation (Weissman, 2013). Even though apps are
Slade et al., 2015), the conceptualization and empirical powerful advertising tools, their positive impact on customer
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validation of continued mobile app use behavior derived from relationship building occurs only when customers are willing to
the dual-persuasion process in a branded app has not been continuously use the mobile app (Kim et al., 2015). Thus,
addressed. Simply investigating customers’ intentions to adopt branded apps should include features that enhance customers’
technology does not guarantee long-term success of the continued use intentions.
branded app (Wang and Wang, 2010). Investigating and The results identified both central and peripheral processing
validating customers’ continued mobile app use intentions persuaded customers. Service organizations should convey
provided a theoretical contribution by determining a role of strong arguments in their mobile app strategies. Argument
persuasive process in the development of customers’ continued quality had a significant impact on perceived usefulness and
use behavior. PSI; thus, the service industry should contribute high-quality
In addition, this study investigated the persuasion process content given that accuracy of information is a vital factor
of the branded app, derived from IAM research (Sussman influencing customers’ continuous branded app use behavior.
and Siegal, 2003). Applying IAM to a mobile app context of For instance, a branded app can convey updated and relevant
the service industry extended the applicability of IAM information and include detailed and in-depth information to
theory to other contexts. By using the IAM to gain insights enhance central processing.
into branded apps in the service industry, this study revealed In addition, service organizations should enhance source
central and peripheral routes were not mutually exclusive in credibility of branded apps. Branded apps need to incorporate
branded app contexts, as customers relied on both trustworthy perceptions and integrity as a way of source
information processes to evaluate branded apps. Building credibility. Mobile apps use different types of peripheral cues,
upon previous research on the dual-routes of persuasion, such as pictures and virtual tours, to formulate source
this study revealed both dimensions were critical credibility. For instance, branded apps can include vivid
determinants that significantly influenced customers’ pictures and live videos to enhance trustworthy perceptions and
continued mobile app use intentions. believability of the branded apps. Moreover, mobile apps
Moreover, results provided insights on the role of PSI in a enhance usefulness and PSI to promote customers’ continued
branded app context. Reflecting on unique characteristics of use intentions. Branded apps can be integrated with other
the service industry, an additional construct was incorporated communication channels, such as websites and social media, to
into the IAM model to better understand factors influencing promote usefulness and PSI features of branded apps. When
customers’ continued mobile app use intention. Investigating customers feel PSI and usefulness, they are more likely to use
the formation of usefulness perceptions and PSI helped the mobile app in their daily life. With easily incorporated and
researchers understand the dynamics of branded apps at the user-friendly technologies, service organizations can foster a
micro-level. Results of this research were supported in the favorable relationship with customers via branded apps.
behavioral decision theory (Edwards, 1961). Behavioral
decision theory explained customers’ decision-making Limitations and suggestions for future research
processes were based on their values and beliefs (Einhorn and This study had limitations, suggesting the need for future
Hogarth, 1981; Khan et al., 2005). When customers were research. Respondents were previous hotel customers in the
confronted with options, they weighed available options before USA. Many service organizations pursue globalization to serve
making decisions. Customers needed to use their time and customers worldwide. Thus, cultural differences might play a
skills when requesting service via mobile apps, compared to significant role in responses. For instance, investigating
when they received service via a standardized method or a different cultural backgrounds could provide different
person-to-person interaction. Therefore, findings contributed perceptions of mobile app persuasiveness. In addition, there
to the emerging mobile marketing literature on PSI, proposing were technological issues for customers to adopt branded apps.
how positive relationship marketing was achieved via mobile Mobile apps often required updates, and installing updates
apps. burdened customers. Therefore, future research should
 Customers’ continued mobile app use Journal of Services Marketing
Seonjeong (Ally) Lee

investigate the role of technological issues, such as technology com/articles/loyalty-referral-gamification/three-elements-of-

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