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Article

Information Development
2016, Vol. 32(2) 161–174
Understanding users’ continuance ª The Author(s) 2014
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intention toward smartphone DOI: 10.1177/0266666914535119
idv.sagepub.com
augmented reality applications

Keesung Kim, Jiyeon Hwang, Hangjung Zo


Korea Advanced Institute of Science and Technology (KAIST)

Hwansoo Lee
Dankook University

Abstract
In spite of high expectations for augmented reality (AR) technology, many smartphone AR applications have
failed and terminated their services in Korea because of low usage rates. As failures of smartphone AR appli-
cations have increased, investigating factors that influence users’ continuance intention to use the AR applica-
tions become an important topic. This study develops a theoretical model that explains continuance intention
of users based on AR and motivation theories, and empirically examines the influencing factors with collected
data from smartphone AR application users. The results showed that information quality was the most influen-
cing factor for AR continuance intention among AR factors, while perceived enjoyment was not a significant
antecedent. The implications of this study provide additional insights for smartphone AR researchers and
developers.

Keywords
augmented reality, smartphone applications, motivation theory, continuous intention, Korea

Users’ views of usefulness are very important for the commercialization of augmented
reality smartphone applications.

Introduction location-based AR application providing various infor-


Gartner (2010) predicted that augmented reality (AR) mation to users, was terminated in June of 2013.
‘‘is one of the promising top 10 technologies’’ by ‘Ovjet’ was another AR mobile application that pro-
mapping its ‘‘hype cycle,’’ which is a means of pre- vided a service similar to ‘Scansearch’. That applica-
dicting information technology (IT) trends and invest- tion changed from a service providing information to
ment prospects. As predicted by the Gartner hype a location-based social network service in January of
cycle, a variety of fields have begun utilizing AR 2013. These changes came despite the fact that these
technology, including the medical, education, enter- well-known applications had many users in Korea.
tainment, and robotics fields. In particular, there has Previous AR studies mainly concentrated on the
been active development and service launches of var- technological aspects. For instance, Kato and Billing-
ious smartphone applications using AR technology hurst (1999) conducted a study that focused on precise
around the world. virtual object registration technology. Wagner and
However, AR mobile applications have often failed
despite the fact that the market for them is expected to
Corresponding author:
grow and the applications have no technical problems.
Hwansoo Lee, Interdisciplinary Graduate Program in IT Law,
In the case of Korea, many AR applications have ter- Dankook University, 152 Jukjeon-ro, Suji-gu, Yongin-si, Gyeonggi-
minated their services due to low usage rates. For do 448-701, Republic of Korea. Voice: þ82-31-8005-3278.
example, the application ‘Scansearch’, which is a Email: hanslee992@gmail.com
162 Information Development 32(2)

(Theng et al., 2007). A real environment is one in


which the environment consists only of real objects,
whereas a virtual environment implies that an envi-
ronment consists of all virtual objects. Thus, augmen-
ted reality can be defined as a real environment which
includes some virtual objects.
Figure 1. Virtuality Continuum. The concept of AR can be applied to any tech-
nology that comingles virtual and real information
Schmalstieg (2003) studied handheld AR, considering (Klopfer, 2008). Klopfer and Squire (2008: 205) argued
the hardware set-up and software components needed that AR is ‘‘a situation in which a real world context is
to use AR and ways to represent a clear image and dynamically overlaid with coherent location or context
optimal tracking of virtual objects. With these techni- sensitive virtual information’’. Thus, AR technology
cal studies of AR, understanding the user perspective provides a computer-mediated absorbing experience
is also an important topic when attempting to find in mixed reality in which a user’s perception is aug-
effective ways to improve the completeness of AR mented (Dunleavy et al., 2009). Azuma (1997) sug-
technology and enhance its usage. However, only a gested three characteristics of AR: a combination of
few studies have investigated AR technology from the the real and virtual world, interactivity in real time,
perspective of its users (Chang et al., 2014; Wojcie- and registration in 3-D. Based on these three charac-
chowski and Cellary, 2013). teristics, AR supplements the real world by superim-
The purpose of this study is to enhance our under- posing virtual objects onto it and improving its users’
standing of user behavior and provide practical perceptions and interactions between the real envi-
suggestions to improve user retention, which are ronment and the virtual objects. Narzt et al. (2006)
important when mobile application programmers also proposed two characteristics of AR. First, AR
develop applications. Most studies of AR only explain systems offer precise and intuitive depictions of vir-
the attributes of AR, whereas only a few empirical tual objects and real environments. Second, AR sys-
studies investigate user behavior. In order to explain tems have a natural interface for interacting. These
user behavior using AR smartphone applications, this two characteristics of AR emphasize user interaction
study proposes a comprehensive model that utilizes the and the balance between virtual objects and the real
technology acceptance model (TAM), the expectation- environment.
confirmation model (ECM), and motivation theory.
Based on various information system (IS) theories,
this study investigates the main success factors of AR mobile applications and success factors
AR mobile applications that affect continuous usage Recent handheld devices, such as smartphones that
behavior. utilize AR technology, have been rapidly developed,
as opposed to traditional devices. Many programmers
Literature review are actively developing an ever-increasing number of
mobile applications using diverse technologies, and
Augmented reality various AR mobile applications have now appeared
The field of computer science research has defined worldwide. Mobile AR is defined as ‘‘AR created and
AR concepts in different ways. Milgram and Kishino accessed with mobile devices in mobile contexts of
(1994) suggested that ‘real’ and ‘virtual’ environ- use’’ (Olsson et al., 2013: 288).
ments are on a continuum of mixed reality and that Mobile AR is classified into two categories: marker-
AR is on the spectrum. Mixed reality (MR) is defined less and marker-based. The concept of marker-less
as ‘‘the integration and merging of the real and virtual means that it uses location data from the mobile
worlds in which physical and virtual objects comple- device or image recognition to determine the
ment and interact with each other’’ (Olsson et al., user’s location and superimpose virtual information.
2009: 20). As shown in Figure 1, MR can be classified Marker-less mobile applications can operate any-
by how much a user’s environments are real or virtual. where and visualize virtual objects related to a user’s
These environments, on a scale from real to virtual, immediate environment (Olsson et al., 2013). On
include real environments, augmented reality (AR), the other hand, marker-based mobile applications
augmented virtuality (AV), and virtual environments require specific items, such as a bar code or a QR code
Kim et al: Understanding users’ continuance intention toward smartphone augmented reality applications 163

(Pence, 2010). Therefore, marker-based mobile vividness indicates the degree of the clear depiction
applications require a phone camera to catch a spe- of a virtual image or the degree of the combination
cific code to access the desired information through of the real and the virtual. If vividness is of a high
a code recognition process. quality, it can represent a high visual quality of virtual
According to previous AR technology studies, tele- information and enhance user perception. Therefore,
presence is the most important factor that determines vividness can also be said to be visual quality. Thus,
quality of the technology (Nee et al., 2012; Bimber depending on the degree of visual quality and interac-
et al., 2005; Wu et al., 2012). Telepresence is mediated tivity, users may feel that the application is useful and
perception through a communication medium in a real enjoyable.
environment (Steuer, 1992). Walker and Sheppard Following the concept of telepresence, accuracy is
(1997: 1) argued that ‘‘telepresence is enabling human also considered to be an important factor. The accu-
interaction at a distance, creating a sense of being pres- racy of an AR application pertains to the quality of the
ent at a remote location.’’ As a virtual environment, information that the application processes or gener-
unlike a natural environment, has temporal and spatial ates. Bimber et al. (2005) argued that virtual objects
differences from real environments, a sense of being must maintain correct and consistent registration with
there is a crucial factor for AR (Reeves, 1991). a real environment to provide accurate information.
Telepresence is jointly evoked by two sub-factors: Nee et al. (2012), Regenbrecht et al. (2002) and Papa-
interactivity and vividness. Interactivity means ‘‘the giannakis et al. (2008) also insisted that an AR appli-
extent to which users can participate in modifying the cation requires the accurate tracking and overlaying
form and content of a mediated environment in real of virtual objects with the real environment. Informa-
time’’ (Steuer, 1992: 87). In AR smartphone applica- tion quality can be widely defined, depending on
tions, interactivity is the ability of users to manipulate one’s viewpoint, and accuracy is one of the dimen-
virtual objects and virtual environments. Nee et al. sions of information quality (Knight and Burn,
(2012) reported that the ability to manipulate virtual 2005). In the context of accuracy, information quality
object enhances the immersive and interactive sensa- is defined as ‘‘the extent to which data are correct,
tion to a user. Azuma et al. (2001) also noted that many reliable and certified free of error’’ (Knight and Burn,
researchers are focused on how users will interact with 2005: 162). To achieve the precise tracking and regis-
AR applications, while Narzt et al. (2006) proposed tration of virtual information onto the real environ-
that a natural interaction interface is one of the major ment means that a high information quality level is
concepts of an AR system. It affects user perception required. Accordingly, information quality is consid-
and immersion in AR mobile applications. Therefore, ered as one of the most important elements in AR
the interaction between virtual objects and a user is one mobile application. In summary, based on previous
of the success factors of an AR mobile application. research, interactivity, visual quality, and information
Vividness refers to the ‘‘representational richness quality are the three major important factors of AR
of a mediated environment as defined by its formal mobile applications.
features, that is, the way in which an environment pre-
sents information to the senses’’ (Steuer, 1992: 84).
Vividness is also divided into two dimensions: Theories of information systems usage
breadth and depth. Breadth ‘‘is the number of differ- The technology acceptance model (TAM), a well-
ent senses that a medium can engage’’ and depth is known theory in the information systems (IS) research
‘‘how closely a medium can replicate parts of the field, has been continuously utilized in various fields
human sensory system’’ (Coyle and Thorson, 2001: to explain the intentions of individual behaviors
67). Narzt et al. (2006: 177) noted that the clear and (Davis, 1989). TAM posits two important factors,
intuitive depiction and perception of information are perceived usefulness and perceived ease of use, as
two other major concepts of an AR system. These are the key determinants of behavioral intention. Davis
also related to the high-quality rendering of a virtual (1989) initially suggested that perceived ease of use
object, as emphasized by AR researchers in AR tech- indirectly influences behavioral intentions through
nology. Vividness is also important in AR smartphone attitude in the original model. However, the attitude
applications because it is related to the clear expres- construct was later discarded by Davis et al. (1989)
sion of virtual objects and the natural combination in the model due to the weak mediation effect of
of virtual objects and the real environment. That is, attitude. His subsequent study also showed that the
164 Information Development 32(2)

two behavioral beliefs, perceived usefulness and that ‘‘behavior is evoked from the feeling of pleasure,
perceived ease of use, are directly associated with beha- joy, and fun’’ (Lee et al., 2005: 1097).
vioral intention (Venkatesh and Davis, 1996). TAM Davis et al. (1992) verified that extrinsic and intrin-
has been expanded and supplemented by a hedonic sic types of motivation are important determinants of
factor, which is perceived enjoyment. Van der Heijden behavior intention in IS technology. Other studies
(2004) expanded the initial TAM and explained that also found that the two motivation types influenced
hedonic value is also a key determinant of the intention the usage adoption of new technology (e.g., World
of individual behavior. Employing TAM and expanded Wide Web) (Atkinson and Kydd, 1997). Many IS
TAM, the field of IS has continuously expanded the studies that find perceived usefulness, as a form of
research with new technology concepts. external motivation, has positive effects on IS adop-
However, TAM does not explain post-adoption tion and usage behavior (Hsieh and Hsu, 2013; Zhou,
behavior or the continuance intention of IS. Accord- 2011). With regard to internal motivation, perceived
ingly, Bhattacherjee (2001) designed an expectation- enjoyment is recognized for having a positive effect
confirmation model (ECM) to explain the continuance on IS adoption and usage behavior (Olatokun and
intention of IS adoption. The ECM implied that user Nwafor, 2012). In terms of continuance intention,
satisfaction is a critical factor influencing the continu- existing IS studies have shown that extrinsic motiva-
ance intention of IS. Satisfaction is explained in terms tion and intrinsic motivation are key determinants
of an overall evaluation of IT products or services. (Thong et al., 2006; Kim, 2010). As a result, these
According to the ECM, satisfaction is determined by studies support the view that these two types of moti-
two important factors: confirmation of expectation vation positively affect continuance intention. How-
and perceived usefulness. Expectation is defined as ever, these studies do not sufficiently address AR
‘‘individual beliefs or sum of beliefs about the levels technology or AR smartphone applications.
of attributes possessed by a product or service’’ (Thong
et al., 2006: 801). If a user’s expectation is confirmed,
it has a positive effect on perceived usefulness and Research model and hypotheses building
satisfaction. After such a confirmation, users can under- This study proposes an AR application continuance
stand the usefulness of the IS, or feel satisfaction. model based on motivation theory and ECM, which
Perceived usefulness has two effects. One is a direct have been widely applied in the literature on IS.
effect on continuance intention; the other is an indi- According to ECM, the perceived ease of use, an
rect effect through satisfaction. important construct in TAM, is appropriate for
Major theories explain IS adoption or continuance explaining usage behavior at the initial stage, whereas
intention, but these theories cannot completely support it is not effective when used to explain continu-
utilitarian value and hedonic value at the same time. ance intention at a later stage (Bhattacherjee, 2001).
Therefore, this study introduces a new approach to Because the focus of this study is to examine continu-
explain the combination of utilitarian value and hedo- ance usage behavior of users, perceived ease of use
nic value and its effect on continuance intention of IS. was not considered in the model. Further, ECM has
a number of limitations with regard to its ability to
conceptualize and fully explain users’ continuance
Motivation theory behavior with AR applications.
Motivation theory consists of two elements: 1) extrin- First, it is difficult to measure confirmed usefulness
sic motivation and 2) intrinsic motivation. Extrinsic and perceived usefulness separately in a cross-
motivation is defined as ‘‘the performance of an activ- sectional study, though this can be done in longitudi-
ity because it is believed to be instrumental in achiev- nal studies. Because the meaning of confirmation in
ing valued outcomes that are separate from the ECM overlaps perceived usefulness as an outcome
activity’’ (Atkinson and Kydd, 1997: 54). Lee et al. variable, it becomes problematic when describing the
(2005: 1097) explained that ‘‘behavior is driven by its relationship between behavior intention and actual
perceived values and benefits derived.’’ Intrinsic behavior in a cross-sectional study (Armitage and
motivation is defined as ‘‘doing an activity simply for Conner, 1999). Therefore, the confirmation variable
the enjoyment of the activity itself, rather than its was excluded in our research model, and we extended
instrumental value’’ (Ryan and Deci, 2000: 55); this the exogenous factors (information quality, interactiv-
concept was explained by Lee et al. (2005), who noted ity, and visual quality) instead.
Kim et al: Understanding users’ continuance intention toward smartphone augmented reality applications 165

Second, ECM does not cover the hedonic nature of IS In another studies, researchers found that telepre-
continuance. In existing IS studies, however, perceived sence influences perceived usefulness. Kwon and
enjoyment has been recognized for having a positive Wen (2010) discovered that user perception is influ-
effect on the adoption and continuance intention of spe- enced by telepresence. In their paper, an increasing
cific types of IS. Thus, this study extends ECM with the degree of telepresence is considered positively to
perspective of motivation using exogenous factors. affect perceived usefulness in a social network ser-
Based on the modified ECM, we conceptualized the the- vice. Moreover, telepresence can be used to explain
oretical framework and formulated 12 hypotheses. user behavior, and it positively affects perceived
There are many studies which conclude that infor- usefulness in a user-created content (UCC) service
mation quality influences perceived usefulness. Saeed (Oum and Han, 2011). In further detail, interactivity
and Abdinnour-Helm (2008) suggested that information can affect utilitarian and hedonic value. Yoo et al.
quality influences perceived usefulness in IS and that (2010) reported that interactivity influences user
it eventually influences the post adoption usage of IS. perceptions and that it was related to a user’s achiev-
In addition, other researchers have noted that informa- ing functional objectives and pleasant feelings in
tion usefulness influences customer decision-making and e-commerce. In addition, high interactivity in a virtual
that information quality is an important factor when world provides a sense of autonomy and control in
seeking to understand customers’ thinking (Larcker a user’s mind, which reinforces a sense of perceived
and Lessig, 1980). From this point of view, virtual enjoyment (Animesh et al., 2011). In an AR interface,
objects require precise tracking and registration in the ability to manipulate virtual objects influences
an AR mobile application, and with a high level of perceived usefulness and perceived enjoyment
information quality, user will feel that it is helpful. (Wojciechowski and Cellary, 2013). It follows that:
Therefore, it may also be possible that the information
quality of an AR mobile application is related to per- H3. Interactivity will positively affect perceived
ceived usefulness. It follows that: usefulness.
H4. Interactivity will positively affect perceived
H1. Information quality will positively affect per- enjoyment.
ceived usefulness.
If the visual quality level is high, it has a positive
The quality of information is essential to satisfy user influence on user perception. Lee and Lehto (2013)
expectations. High information quality means that infor- noted that a higher level of visual quality increased
mation systems provide appropriate information to the the representational richness of information presented
user. Appropriate information has sub-features such as on ‘YouTube’ and had a positive effect on perceived
relevance, timeliness, believability, completeness, and usefulness. Visual quality is also means that if infor-
concise representation (Knight and Burn, 2005). Previ- mation is depicted concretely or the presentation of
ous studies have shown that all sub-dimensions are a product is shown realistically in e-commerce, users
equally important for information quality and that the can perceive information clearly. As a result, a higher
overall information quality, including the sub-factors, level of visual quality has a positive effect on
has an impact on the perceived enjoyment of information e-commerce and is a strong predictor of perceived
systems (Shin, 2007). For AR mobile applications, pro- enjoyment (Jiang and Benbasat, 2007). This study
viding appropriate information is significant because the extends the relationships among visual quality, per-
applications process various types of information (e.g., ceived usefulness and perceived enjoyment to an
location, time, view, and direction). As a result, users AR mobile application context. It follows that:
expect AR mobile applications to provide accurate,
timely, and credible information (Kim, 2013). If users H5. Visual quality will positively affect perceived
are not provided with information of an overall high usefulness.
quality level, the AR application user may feel that the H6. Visual quality will positively affect perceived
experience is not enjoyable. This can influence the flow enjoyment.
of AR application usage.
In addition to the studies noted above, other research
H2. Information quality will positively affect per- results indicate that perceived enjoyment influences
ceived enjoyment. perceived usefulness. In another study, Teo and Noyes
166 Information Development 32(2)

(2011) proposed that if education system users feel that continuance intention. Based on motivation theory,
the system is enjoyable, that feeling is connected to the Thong et al. (2006) found that perceived usefulness,
feeling that the system is useful. Therefore, their study perceived enjoyment and satisfaction are the key
reported that the perceived enjoyment of an education determinants of a user’s continuance intention. Barnes
system has a significant influence on the perceived use- (2011) also proved that hedonic values are the key
fulness of the education system. Liaw (2002) and Liaw determinants of existing users’ continuance inten-
and Huang (2003) also investigated how the extrinsic tions in virtual worlds. Therefore, this study concep-
motivation (usefulness) of world-wide web environ- tualizes a model by incorporating both aspects based
ments is influenced by a users’ levels of intrinsic moti- on motivation theory. It follows that:
vation (enjoyment); their study concluded that a user’s
intrinsic motivation has a positive effect on behavior H10. Perceived usefulness will positively affect con-
intention. The present study focuses on the user per- tinuous intention.
spective to predict that a user’s intrinsic motivation H11. Perceived enjoyment will positively affect con-
toward their AR smartphone application can influence tinuous intention.
extrinsic motivation. It follows that: H12. User satisfaction will positively affect continu-
ous intention.
H7. Perceived enjoyment will positively affect per-
ceived usefulness.
Research methodology and results
User satisfaction is linked to user perception, and a This study used a survey method to test the model. All
user’s pleasurable fulfillment is connected to their measurement items were adopted from previous stud-
post-usage intention (Chiou, 2004). In previous ies, and modified for the AR context (See Table 1).
research, McDougall and Levesque (2000) proposed A seven-point Likert type scale (Strongly disagree ¼ 1,
that perceived value is the most important factor affect- Neutral ¼ 4, strongly agree ¼ 7) was used to measure
ing user satisfaction in the service industry. Patterson all items. The questionnaires were distributed to 1,200
and Spreng (1997) also reported that user satisfaction smartphone users in July, 2013 by OVEY, that is a
is influenced by perceived usefulness and perceived renowned mobile survey company in Korea. First, a
enjoyment in a business-to-business (B2B) service. questionnaire was provided to 1,200 smartphone
The present study attempts to apply these previous users, and only 200 users responded that they had pre-
results to an AR mobile application context. An AR viously used AR smartphone applications. Among
mobile application’s level of user satisfaction is the 200 respondents, some of them chose the same
affected by utilitarian and hedonic value. If an AR answers, and the others chose contradictory responses
mobile application is useful and enjoyable, users feel to reverse questionnaires. As a result, 22 samples
profound satisfaction. Therefore, it follows that: were discarded as invalid. Table 2 shows the demo-
graphics of the 178 valid samples.
H8. Perceived usefulness will positively affect user Data analysis was performed based on partial least
satisfaction. squares (PLS) analysis by using ‘Smartpls 2.0’(Ringle
H9. Perceived enjoyment will positively affect user et al., 2005). The evaluation of the measurement model
satisfaction. was validated with three main criteria: (1) Reliability,
(2) Convergent validity, and (3) Discriminant validity.
Continuance intention at the user level is an impor- The reliability of each item was assessed by calcu-
tant behavior that has been investigated in various IS lating Cronbach Alpha and Composite Reliability
studies. Based on the ECM of IS, it was empirically (CR). Nunnally (1978) reported that the recommended
shown that perceived usefulness and satisfaction are threshold of Cronbach Alpha is above 0.7 but 0.6 is a
strong predictors of a user’s continuance intention. generally acceptable value. The acceptable criterion
This approach explains continuance behavior with of Composite Reliability is also greater than 0.7
regard to traditional systems, but current systems must (Bagozzi and Yi, 1988). As shown in Table 1, all Cron-
consider the ‘‘enjoyment view’’ (Van der Heijden, bach Alpha and Composite Reliability values satisfied
2004). For smartphone AR applications, there are each cut-off value. Convergent validity was assessed
many hedonic aspects. Perceived enjoyment can by Average Variance Extracted (AVE) and factor
also be an important factor as an antecedent of loadings. The study by Fornell and Larcker (1981)
Kim et al: Understanding users’ continuance intention toward smartphone augmented reality applications 167

Information
Quality H1(+)
Perceived
H2(+)
Usefulness
H10(+)
H8(+)
H3(+)
H12(+) Continuous
Interactivity H4(+) H7(+) Satisfaction
Intention

H9(+)
H5(+) H11(+)
Perceived
H6(+) Enjoyment
Visual
Quality

Figure 2. Research model.

Table 1. Measurement items.

Construct Item No. Measurement items Reference

Information INF1 The AR application provides precise information that the user needs. Seddon and Kiew
Quality INF2 The AR application provides up-to-date information. (2007)
INF3 Information that is provided by the AR application is clear and
understandable.
Interactivity INT1 I am in control over the composition of the display when using Cyr et al. (2009)
the AR application. Animesh et al.
INT2 I am in control over the content of the AR applications that I want (2011)
to see.
INT3 I can control of the virtual objects and virtual environment in the AR
application.
Visual VSQ1 The virtual objects on the screen of the AR application are lively. Jiang and Benbasat
Quality VSQ2 The virtual objects on the screen of the AR application are (2007)
described in practical terms.
VSQ3 The virtual objects on the screen of the AR application are
expressed vividly.
Perceived PU1 The AR application is useful in my daily life. Thong et al. (2006)
Usefulness PU2 The AR application provides useful information. Davis (1989)
PU3 The AR application helps improve work efficiency.
Perceived PE1 Using the AR application is enjoyable. Thong et al. (2006)
Enjoyment PE2 Using the AR application is pleasurable.
PE3 I have fun when using the AR application.
Satisfaction SAT1 I am satisfied with using the AR application. Thong et al. (2006)
SAT2 I am not complaining about using the AR application.
SAT3 The AR application fulfills my demand.
Continuous CI1 I intend to continue using the AR application in the future. Thong et al. (2006)
Intention CI2 I will use the AR application more often in my daily life. Lin et al. (2005)
CI3 I will share the AR application with others.

suggested that AVE and factor loadings should be threshold value. Discriminant validity is assessed by
greater than 0.50. As shown in Table 1, research instru- the square root of AVE. As shown in Table 2, all of the
ments of factor loading values and AVE satisfied each diagonal values in under-line value mean that the
168 Information Development 32(2)

Table 2. Respondents Demographics.

Demographic Category (N¼178) Frequency Percentage (%)

Gender Male 78 43.8


Female 100 56.2
Age 19 or younger 12 6.7
20-29 90 50.6
30-39 54 30.3
40-49 16 9.0
50-59 5 2.8
60-69 1 0.6
Occupation Student 42 23.6
Management / Administrative 9 5.1
Office / Technical 56 31.5
Public Official 13 7.3
Sales 7 3.9
Free/Specialized 21 11.8
Self-employed 5 2.8
Others 25 14.0
Operating System (OS) iOS 10 5.6
Android 168 94.4
Application use Rarely used 43 24.2
1-2 per month 60 33.7
1-2 per week 54 30.3
1-2 per day 15 8.4
More frequently used 6 3.4

square root of AVE and each of the values are greater confidence interval for a two-tailed test. As shown in
than the corresponding row and column values. The figure 3, only H3 and H11 were not supported.
results imply that discriminant validity is acceptable.
Table 1 and Table 2 show the results of the validity test. Discussion
In order to test the significance and strength of the
proposed hypotheses, a 500 subsample bootstrap Discussion of the key findings
method was used. The bootstrap method is one in This study has several meaningful findings. The
which ‘‘a large number of random samples are gener- results make several interesting contributions to the
ated from the original dataset by sampling with literature on AR applications.
replacement’’ (Brown and Chin, 2004). This method First, perceived usefulness was a strong predictor
is executed based on the number of samples, where of the continuous intention of an AR application.
500 or 1000 bootstrap re-sampling are commonplace Although an AR smartphone application has utilitar-
(Chin, 2010). Efron and Tibshirani (1994) suggested ian and hedonic characteristics, perceived usefulness
that a re-sampling size of more than 500 is acceptable. has a direct effect on satisfaction and continuance
Because our sample size was relatively small, we con- intention. That is, perceived usefulness significantly
ducted a bootstrap procedure with a re-sampling size of affects a user’s continuance intention, which implies
500. Figure 3 represents the results of the testing struc- that AR mobile application developers should be
tural model. The proposed model explained 60.4% of more concerned with improving the usefulness fac-
the variance in continuance intention and 44.1% of the tors of their applications than the enjoyment factors
variance for user satisfaction by the antecedent vari- when seeking to influence continuous usage applica-
ables. In addition, the proposed model explained tions. This result is consistent with the findings of
53.6% of the variance in perceived usefulness and earlier research which argued that perceived useful-
24.6% of the variance for perceived enjoyment by ness is a strong predictor of user satisfaction and
the antecedent variables. Among the 12 hypotheses, continuous intention with IS (Bhattacherjee, 2001;
most of them were supported with an over 95 percent Barnes, 2011).
Kim et al: Understanding users’ continuance intention toward smartphone augmented reality applications 169

Information .36***
Quality
Perceived
.22* Usefulness
(R2=53.6%)
.39*** .18**
.08
Continuous
Interactivity
Satisfaction .58*** Intention
.15* .31*** (R2=44.1%)
(R2=60.4%)
.36***
.10
.18* Perceived
.22** Enjoyment
Visual (R2=24.6%)
Path significance: *p < .05, **p < .01, *** p < .001.
Quality

Figure 3. Results of the Structural Model.

Table 3. Measurement model.

Cronbach’s Composite Average Variance


Construct FactorLoading t-value Alpha(a) Reliability (C.R) Extracted (AVE)

Information Quality (INF) INF1 .80 11.36 .72 .84 .64


INF2 .85 23.37
INF3 .76 13.48
Interactivity (INT) INT1 .86 12.52 .79 .87 .70
INT2 .88 26.94
INT3 .76 9.30
Visual Quality (VSQ) VSQ1 .79 11.19 .79 .88 .70
VSQ2 .88 24.46
VSQ3 .84 21.49
Perceived Usefulness (PU) PU1 .75 8.84 .76 .86 .68
PU2 .86 18.19
PU3 .86 26.90
Perceived Enjoyment (PE) PE1 .94 69.37 .92 .95 .86
PE2 .92 39.84
PE3 .91 44.78
Satisfaction (SAT) SAT1 .91 43.80 .85 .91 .76
SAT2 .81 14.14
SAT3 .90 41.33
Continuous Intention (CI) CI1 .93 48.51 .91 .95 .85
CI2 .93 46.18
CI3 .91 35.69

Second, perceived enjoyment had an indirect effect curiosity in the early stages. Teaching materials that
through perceived usefulness or satisfaction. In previ- use AR technology can raise a student’s curiosity such
ous research, perceived enjoyment was shown to be a that they actively participate (Ucelli et al., 2005; Chen
strong predictor of continuous intention (Van der Heij- et al., 2011). However, our results show that this does
den, 2004). However, the current study shows different not guarantee the survival of an AR application; focus-
results. In the early stages, the technological features of ing on the hedonic nature of AR mobile application
the AR application stimulate early adopters’ curiosity users may explain the failure.
and increased the popularity of the application. For Third, this study supports the finding that the
example, an AR educational book stimulates children’s level of information quality has a relatively strong
170 Information Development 32(2)

Table 4. Construct correlations and Discriminant Validity.

Construct INF INT VSQ PU PE SAT CI

INF .80
INT .55 .83
VSQ .57 .46 .84
PU .63 .47 .55 .82
PE .43 .38 .42 .57 .93
SAT .54 .48 .57 .59 .58 .87
CI .47 .41 .44 .59 .55 .75 .92
*Note: The table in under-line values means the square root of AVE.

influence on perceived usefulness and perceived enjoy- applications is closely related to the hedonic feature
ment. This is consistent with the findings of previous and that AR application users recognize the level of
research. According to Saeed and Abdinnour-Helm usefulness through the information quality and the
(2008) and Yang et al. (2005), the level of information visual quality rather than the interactivity factor.
quality directly influences the perceived usefulness of Another possible explanation is the limits of current
an IS and is an important antecedent of the degree of smartphones. One of the main limitations of a mobile
perceived usefulness. Moreover, the results indicate AR system is limited user control due to the screen
that information and service of a high quality pro- size (Pence, 2010), and most smartphone screen sizes
vided by technologies influences users’ perceived and user interfaces (UIs) are similar. As a result, it is
enjoyment of the mobile Internet (Shin, 2007). In this not easy for users to recognize the usefulness of the
respect, this result is meaningful because it extends AR application through interaction. Moreover, infor-
the results of previous research to the new context mation and visual quality are strongly associated with
of AR smartphone applications. perceived usefulness as opposed to interactivity;
Fourth, two factors of telepresence were analyzed therefore, interactivity does not have a significant
in this study, and the effects of the two factors were relationship with perceived usefulness.
found to be different. As expected, visual quality has
a positive influence on perceived usefulness and per-
ceived enjoyment. When AR application users use a Theoretical and practical implications
display, a well-represented virtual image or a natural A primary contribution of this study is the identifica-
expression of an image is an important factor for the tion of success factors for AR smartphone applications.
user. Interactivity also has a positive influence on per- Azuma (1997) and Nee et al. (2012) discussed only the
ceived enjoyment in an AR smartphone application theoretical features of AR without an empirical analy-
context. Interaction with the mobile AR service sti- sis; therefore, the necessity of statistical verification
mulates a users’ participation (Kim, 2013). In addi- to explain the major factors of AR applications is
tion, interaction with virtual objects in an AR required. Based on previous studies, this study con-
learning system gives the user a chance to manipulate firmed three major factors: information quality, inter-
virtual objects, and active participation is connected activity, and visual quality, and it explored the most
to perceived enjoyment, improving learner motivation important determinant affecting users’ intentions to
for learning (Wojciechowski and Cellary, 2013). continue to use AR smartphone applications.
Therefore, users experience more enjoyment through Second, this study provides a comprehensive
the manipulation of virtual objects in an AR smart- research model that clarifies our understanding of
phone application. the behavior of smartphone AR users. In existing
However, interactivity did not have a significant AR studies, information quality, interactivity, and
impact on perceived usefulness. Although interactiv- visual quality were utilized as exogenous variables
ity was an important factor in previous research (Nee that influence the focal constructs (perceived useful-
et al., 2012), Hürst and van Wezel (2013) argued that ness, perceived enjoyment and satisfaction) of moti-
the interactivity of mobile AR applications mainly vation theory and ECM. With these variables, this
influences their fun and entertainment factors. This study extends previous AR theories and conceptua-
study shows that the interactivity in mobile AR lizes the causal relationships pertaining to the
Kim et al: Understanding users’ continuance intention toward smartphone augmented reality applications 171

continuance usage of AR smartphone applications. application guides the user to find the nearest destina-
In addition, this study empirically proved that infor- tion desired by the user, and the user can easily
mation quality and visual quality are more important acquire knowledge using an AR educational applica-
than interactivity. tion. Although hedonic purposes are important, the
Third, this study discussed user perspectives in an utilitarian purpose is emphasized more. As shown in
AR mobile application context. Previous studies the results, a user’s intention to continue their use of
mainly focused on the technical aspects of AR to an application is influenced by the usefulness of the
improve the functional performance of an AR system. application, and practitioners should therefore focus
For example, effective technologies of virtual object more on improving an application’s usefulness.
tracking, a method of interaction between users and
virtual objects, and 3D-image generation technology Limitations
were discussed (Kato and Billinghurst, 1999). How-
This study has a few limitations. The sample data was
ever, this study considers user perspectives in an
gathered from a single country, and the number of
effort to investigate AR smartphone applications
samples was relatively small. However, the results
based on various IS theories. Therefore, this study
of this study should be meaningful for other countries
proposes a different perspective compared to earlier
starting to build AR applications. As Korea is an
studies with assumed a technical perspective.
advanced country in the IT industry and actively
Lastly, this study reviews AR technology and
develops AR smartphone applications currently, our
mobile AR synthetically. In the beginning, this paper
results show how new developers in other countries
shows the development history of AR technology as
can design AR smartphone applications. In the future,
well as the present and future. Wu et al. (2012)
more samples and data from other countries would be
referred to the definitions, taxonomies, and technolo-
effective to generalize the results, and an international
gical features of the AR, and Pence (2010) organized
comparison based on this study would also be useful.
mobile AR applications. Based on previous studies,
this study summarizes this concept in terms of the
major characteristics of AR technology. References
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174 Information Development 32(2)

Yang Z, Cai S, Zhou Z, et al. (2005) Development and vali- Republic of Korea. Voice: þ82-42-350-6338. Email:
dation of an instrument to measure user perceived ser- bandal@kaist.ac.kr
vice quality of information presenting web portals.
Information & Management 42(4): 575–589. Hangjung Zo is Associate Professor of MIS in the Depart-
Yoo W-S, Lee Y and Park J (2010) The role of interactivity in ment of Business and Technology Management at Korea
e-tailing: Creating value and increasing satisfaction. Jour- Advanced Institute of Science and Technology (KAIST).
nal of Retailing and Consumer Services 17(2): 89–96. He received his PhD in MIS from the University of Wis-
Zhou T (2011) The effect of initial trust on user adoption
consin–Milwaukee. His research interests include Web ser-
of mobile payment. Information Development 27(4):
vices and Web-based systems, e-business, e-government,
290–300.
software engineering, business process management, and
IT strategy. His papers have appeared in IEEE Transac-
tions on Systems Man & Cybernetics, Decision Support
About the authors
Systems, Journal of Business Research, Electronic Com-
Keesung Kim is a Master degree student in the Department merce Research and Applications, Computers & Educa-
of Business and Technology management at Korea tion, Asia Pacific Journal of Information Systems, HICSS,
Advanced Institute of Science and Technology (KAIST). among others. He was the chair for the ICT Innovations and
He received his Bachelor’s degree in information and com- Progresses in Developing Countries Workshop at ICCIT
puter engineering and business administration from Ajou 2009. Contact: Department of Business and Technology
University. His current research interests include user accep- Management, Korea Advanced Institute of Science and
tance of information system, e-business, information privacy Technology (KAIST), 291 Daehak-ro, Yuseong-gu, Daejeon
and business value of information system. His research work 305-701, Republic of Korea. Voice: þ82-42-350-6311.
has been presented at the International Conference on ICT Fax: þ82-42-350-6339. Email: joezo@kaist.edu
Convergence. Contact: Department of Business and Tech-
nology Management, Korea Advanced Institute of Science Hwansoo Lee is Research Professor in the Interdisciplinary
and Technology (KAIST), 291 Daehak-ro, Yuseong-gu, Graduate Program in IT Law at Dankook University. His
Daejeon 305-701, Republic of Korea. Voice: þ82-42-350- research focuses on Information Privacy, Electronic Com-
6338. Email: kisung1201@kaist.ac.kr merce, Platform Business, and Enterprise Information Sys-
tem. His papers have appeared in Behaviour & Information
Jiyeon Hwang is a PhD student in the Department of Busi- Technology, Journal of Global Information Management,
ness and Technology Management at Korea Advanced Insti- Information Development, and several international confer-
tute of Science and Technology (KAIST). She received her ences. He also has well-qualified experiences in related works
Master degree in sociology. Her research focuses on Collec- at information systems area as developer and system analyst.
tive Behavior and Deviant Behavior in virtual community. He has received the Best Papers awards at various interna-
She also has well-qualified experience in related works at the tional and domestic conferences. Contact: Interdisciplinary
research institute ‘Future Thinknet’ as a chief researcher. Graduate Program in IT Law, Dankook University, 152
Contact: Department of Business and Technology Manage- Jukjeon-ro, Suji-gu, Yongin-si, Gyeonggi-do 448-701,
ment, Korea Advanced Institute of Science and Technology Republic of Korea. Voice: þ82-31-8005-3278. Email:
(KAIST), 291 Daehak-ro, Yuseong-gu, Daejeon 305-701, hanslee992@gmail.com

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