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Marketing Intelligence & Planning

The importance of aesthetics on customers’ intentions to purchase smartphones


Samrand Toufani John Philip Stanton Tendai Chikweche
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Samrand Toufani John Philip Stanton Tendai Chikweche , (2017)," The importance of aesthetics on customers’ intentions to
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The importance of aesthetics on customers’ intentions to purchase

smartphones

1. Purpose- This study examines how potential purchasers of a personal information,


communication and entertainment device such as a smartphone, perceive the
aesthetics of such a product. It then examines whether appreciation of the product’s
aesthetics influences their purchase intention through different dimensions of
perceived value drawn from perceptions of the product’s aesthetics, or whether there
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is a direct relationship from aesthetics to purchase intention.

2. Methodology- Mixed methods consisting of two focus groups, a pilot and large online
surveys were used for instrument confirmation and data collection. Data were
analysed and hypotheses tested using partial least squares structural equation
modelling techniques.

3. Findings- Aesthetics’ primary effect on purchase intention is not direct, but rather
indirect through perceived social and to a lesser extent, perceived emotional value
while the importance of aesthetics on perceived functional value is far less. There was
also support for a formative approach in the construction of an aesthetics scale with
the identification of four different latent factors of aesthetics.

4. Research limitations: This study is product specific but should be extendable to the
product category. The possibility of other variables affecting the aesthetic
appreciation of a product also needs consideration.

5. Practical -The study provides managers with insights on how aesthetics can be used to

strengthen purchase intention in terms of both product development and promotional

strategies. Aesthetics’ appeal to social and emotional perceived values, rather than

functional value, provides guidance on how to use aesthetics in promotional

campaigns.

6. Value- Despite the richness of the aesthetics literature only a limited number of
studies have researched the factors influencing aesthetic appreciation of personal
digital products and how this appreciation can influence purchase intention. This

1
research expands knowledge in the area thereby providing new insights on the
influence of aesthetics on marketing.

7. Type of paper-Research

8. Keywords: Aesthetics, Consumer behaviour, Perceived Value, Purchase Intention,

Partial Least Square


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Introduction

Aesthetic principles often are used in the design of personal information

communication, entertainment, technology products (Swilley, 2012; Charters, 2006);


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however, the aesthetic elements of such products and, whether and how appreciation of the

aesthetics of that product may lead to purchase intention by personal (as opposed to business)

purchasers, are unclear. While there are studies that have researched the factors influencing

aesthetic appreciation of a product (Hoyer and Stokburger-Sauer, 2012) there are fewer

studies on how aesthetics can influence purchase decisions (Turel et al., 2010).

This study examines how potential purchasers’ perceptions of the aesthetics of a

smartphone influence their purchase intentions. Described as an interactive, hedonic

technology (Lin and Bhattacherjee, 2010), smartphones have been described as “a cultural

artifact and an extension of their users’ social status” (Shin, 2012, p.566). As such, it is

arguable that perceived enjoyment and social usage are becoming more important than

perceived usefulness in influencing purchase intention (Lin and Bhattacherjee, 2010).

Consistent with the argument that aesthetic factors stimulate behavioural reactions

(Wang et al., 2013), and using a smartphone as an example of a fairly standardized,

technology product which has both utilitarian and hedonistic attractions, this paper addresses

three related issues: (a) For this type of product, what are the most suitable dimensions that

should be considered within an aesthetics scale? (b) Does aesthetics influence purchase

intention directly? (c) Or, does it influence purchase intention indirectly through various

dimensions of perceived value drawn from the aesthetics.

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Addressing these questions can contribute to a better understanding of the dimensions

of aesthetics that are perceived important for this type of product in terms of evoking

purchase intention. By examining possible links between aesthetics and purchase intention,

especially in terms of the kinds of perceived values that may be evoked and their relative

importance, the interplay of hedonic attraction versus usefulness can be better assessed,

leading to improved product and promotional strategies better tailored to these perceived
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values.

These issues are investigated using a sample of Australian smartphone owners. An

Australian sample can be justified by the very high level of smartphone ownership (90%) and

usage by global comparisons, the availability of nearly all global smartphone brands in an

open market (AMTA, 2015), as well as high per capita income levels allowing high level

discretionary spending (Organization for Economic Co-operation and Development, 2015;

Economist Intelligence Unit, 2013). The embrace of mobile technology and the rapid shift to

smartphones is reflected in the statistic that, between 2005 - 2015 57% of the Australian

population replaced their mobile phone four or more times. Over this decade, the importance

of technology as a reason for replacement varied in importance as smartphones emerged

within the mobile market. The reason “wanting the latest technology/smartphone” peaked

between 2011 and 2014 at 33%, but fell to 20% in 2015 (AMTA, 2015; p.19), suggesting

both the acceptance of smartphone technology and use, and the growing importance of other

sources of perceived value influencing the phone replacement decision.

The paper proceeds by developing a scale that seeks to capture dimensions of

consumers’ perceptions of the aesthetics of a technology product and how this appreciation

may influence different factors of perceived value as well as purchase intention. Hypotheses

are drawn and a conceptual model proposed and tested using Partial Least Square (PLS)

4
based structural equation modeling (SEM). The study concludes with a discussion of the

findings and their implications. To ensure a strong focus on the aesthetics and purchase

intention relationship, the study was framed to exclude other potential mediating variables

such as the influence of brand, bundled services and pricing considerations. Respondents may

differ in their visual product aesthetic preferences (Brunel and Swain, 2008), but the effects

of this potential heterogeneity are also excluded.


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Literature Review

Aesthetics

How the aesthetics of an object influences consumer decision making is the subject of

ongoing research (Wang et al.,2013) with different approaches and definitions of aesthetics

spurred by the specific research focus (Hagtvedt and Patrick, 2009). In this study, aesthetics

refers to the concepts of harmony, beauty and order in the material world (White, 1996) with

appreciation of the aesthetics of an object being a sense perception (Veryzer, 1993). As such,

aesthetics is not only about visual appearance but also about other senses such as touch and

taste (Swilley, 2012), acting as stimuli in terms of both cognitive and emotional responses

(Wang et al., 2013). Tapping into a person’s favourable aesthetic responses (Landwehr et al.,

2013) can assist in differentiating products, creating preferences for products.

Following Bloch et al., (2003) and Charters (2006), the aesthetic appeal of a product

may vary from very high (a sculpture or painting) to very low (own-label detergent). Visual

aesthetics is reflected in many customer experiences- most noticeably in fashion and the arts

and less obvious but also significant, in consumer electronic products like personal

computers, tablets and smartphones (Yamamoto and Lambert, 1994). Such products can be

designed to be aesthetically pleasing both visually and to the touch (Swilley, 2012).

5
Little research has been done on how aesthetics influences the purchase of products with both

utilitarian and hedonistic attributes; that is, products valued for both their functional

usefulness as well as their emotional and social values (Hoyer and Stokburger-Sauer, 2012).

To examine the importance and impact of aesthetics on this category of product, a

smartphone is used as an exemplar, defined as a “Personal Digital Assistance phone equipped

with integrated wireless connections and mobile devices” and multiple capabilities (Park and
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Chen, 2007). Such a product can be sought for both its utilitarian and hedonistic

characteristics (Brunner et al., 2008; Swilley, 2012) and to reflect the fashion and personal

expression of buyers (Katz and Sugiyama, 2005, 2006).

Approaches to measuring aesthetics

Based on reviewing the multi-disciplinary literature on aesthetics from a consumer

marketing perspective, Wang et al. (2013, p.46) conclude that measurement requires a

holistic approach with two dimensions: aesthetic formality that considers the practical and

useful; and another dimension capturing emotional appeal. Constructs seeking to capture the

importance of aesthetics to consumers have covered different contexts ranging from the

aesthetics of website design to consumer products in general but with the exception of Lavie

and Tractinsky (2004) and Swilley (2012), appear to focus on the emotional dimension.

Measurement foci include measurement of affective responses from aesthetically pleasing

products (Cox and Cox, 2002); understanding how product components and the whole

contribute to aesthetic appreciation; the generation of aesthetic appreciation, especially the

visual; and studies taking a multisensory approach (e.g., Swilley, 2012; Lavie and Tractinsky,

2004).

To assess the contributing sources to aesthetics, Swilley’s (2012) multi-sensory

approach comprehensively covers the middle ground of the aesthetic continuum, products

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likely to be sought for both their utilitarian and hedonic value. The properties listed in Table

1, proposed by Swilley (2012), were our starting point because:

1. Unlike prior constructs, this one includes most of the dimensions of aesthetics, not

just random measures. This coverage increases the likelihood that both utilitarian and hedonic

stimuli are present (Wang et al., 2013). Other studies have focused on specific areas: on

individuality in the centrality of visual product aesthetics for consumers (Bloch et al., 2003);
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on beauty (Bell et al., 1991); on shape (Cox and Cox, 2002); and colour (Kahn and Wansink,

2004).

2. While other studies have focused on different items, such as online websites (Lavie

and Tractinsky, 2004), works of art, cutlery, offices, and car interiors (Stich, 2004), Swilley

used tablets and ebooks, resembling this study’s context.

3. Aesthetics is used as a construct and not as a variable of other constructs, such as

emotional variables.

In summary, the dimensions of aesthetics are based on the physical attributes of a

product rather than emotional variables as aesthetic factors (Lam and Mukherjee, 2005).

INSERT TABLE 1

Swilley (2012) initially considered that a person’s perceptions of the aesthetics of an

object could be captured by three dimensions: product design, product colour and overall

appearance, with overall appearance consisting of three components: texture/touch, beauty

and shape. Subsequently, overall appearance was not treated as a second order factor, Swilley

(2012) proceeding on the basis of 5 factors: product design, product colour, texture/touch,

beauty and shape. Following Creusen and Schoormans (2005), overall appearance was

considered another separate dimension and items for six dimensions developed using Swilley

7
(2012) and earlier research (Wehmeyer, 2008; Cox and Cox, 2002; Bell et al., 1991). These

were then tested through two focus groups and a pilot test (see Appendix 1 for items

pertaining to each dimension).

Swilley (2012) conceptualizes aesthetics in a reflective manner, which is problematic.

First, indicators in reflective models should be interchangeable (Jarvis et al., 2003), but

shape, touch, colour and design as components of aesthetics are unique and not
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interchangeable. Second, there should be a co-variation among the indicators in reflective

models (Jarvis et al., 2003); however, there is no theoretical argument that indicators of shape

or colour should correlate to each. Third, in reflective models the causality direction is from

second order factors to first-order components, meaning that any variation in the second order

factor brings variation in the item measures (Edwards and Bagozzi, 2000). As the variation in

aesthetics is based on its factors, such as shape and colour, this means that the way the factors

of aesthetics are observed can change the meaning of aesthetics (e.g., Kim, Kim and

Paramita, 2013). Accordingly, this study uses a formative approach to test the properties

listed in Table 1.

Perceived value

The next question is whether the pleasing aesthetics of an object can trigger perceived

values that mediate purchase intention, the term ‘value’ referring to a judgment of preference

by consumers (Gan et al., 2005). In terms of multi-dimensional approaches to assessing

customer perceived value, the theory of consumption values developed by Sheth et al., (1991)

appears influential in subsequent development of perceived value measurement. The axioms

that consumer choice is a function of independent consumer values that make differential

contributions in any choice situation (Sheth et al., 1991, p.160) underpin the approach of

Sweeney and Soutar (2001). They describe customer value as a customer-perceived

8
preference for a product’s attributes and functionalities. Their consumer perceived value scale

(PERVAL) conceptualizes perceived value as a combination of Functional, Social, Emotional

and Price dimensions that can be used in either a pre or post-purchase product evaluation

context (Chen and Dubinsky, 2003).

Although perceived value has been evaluated using either unidimensional or

multidimensional scales (Sweeney and Soutar, 2001; Walsh et al., 2013), the multi-
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dimensional approach is more appropriate in evaluating the shopping habits of consumers

(Chi and Kilduff, 2011). When it comes to the visual appeal of products, the socio-

psychological aspects of consumption (hedonic and social) may be as important as the

utilitarian (functional) aspects (Kempf 1999).

The multi-dimensional approach is also compatible with theoretical developments

regarding the role of feelings in the buying and consumption processes (Sánchez Garcia et al.,

2006). Consumption experiences may simultaneously involve hedonic and utilitarian values

(Sweeney and Soutar, 2001; Walsh et al., 2013). While there are many studies focusing on

the role of perceived value in different contexts, such as services (Callarisa Fiol et al., 2009),

tourism (Gallarza and Gil Saura, 2006) and online marketing (Mathwick et al., 2001),

research focusing on products with both utilitarian and hedonistic attributes is rare.

Perceived value is an important antecedent influencing consumer purchase intention

(Turel et al., 2010). The higher perceived value is, the stronger purchase intention is likely to

be (Monroe and Krishnan, 1985). Table 2 shows three widely used dimensions of perceived

value determined by Sweeny and Soutar (2001) -functional, social and emotional value- and

the items commonly associated with each dimension. In order to understand the value

consumers’ perceive in aesthetics without the monetary value of the product, price is

excluded from this study. Sweeny and Soutar’s (2001) research focused on performance or

9
quality as a functional value of a product, defined as “the utility derived from the perceived

quality and expected performance of the product” (p.211), such as durability and technical

quality (Callarisa Fiol et al., 2009; 2011) and ease of use (Tzou and Lu, 2009).

Social value, defined as the ‘‘perceived utility acquired from an alternative’s

association with one or more specific social groups’’ (Sheth et al. 1991, p.161), can enhance

a person’s social self-concept (Sweeney and Soutar 2001) based on the perception of
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society’s assessment of the product (Callarisa Fiol et al., 2011). Purchasers may believe that

by choosing visually appealing products they can improve their social status (Holbrook,

1999) while products thought to be observable in use (e.g. cell phones, eBook readers) and

able to be shared with others, may be chosen based on their perceived social value.

Emotional value is “the perceived utility acquired from an alternative’s capacity to

arouse feelings or affective states” (Sheth et al., 1991, p.161). The aesthetic characteristics of

an object can create emotional reactions (Frijda and Schram, 1995) with product design used

as a means to attract consumers’ attention, convey product information and increase

perceptions of beauty (Tractinsky et al., 2000).

INSERT TABLE 2

Purchase Intention

Purchase intention relates to the likelihood that a consumer will buy a product

(Morowitz and Schmittlein, 1992). Fishbein and Ajzen (1975, p.369) declared that, "if

anyone wants to know whether or not an individual will perform a given behavior, the

simplest and probably most effective thing one can do is to ask the individual whether he

intends to perform that behavior". Therefore, ‘intention’ is assumed to be the immediate

antecedent of behaviour (Ajzen, 1991) where “one makes a self-implicated statement as to a

future course of action” (Bagozzi 1983, p.145).

10
Model, Research Questions and Hypotheses Development

Figure 1 links aesthetic appreciation of an object to different perceived values, with

those values mediating purchase intention. A multi-dimensional perceived value model was

selected because a single dimension, such as perceived usefulness or functionality, may be

less relevant in contexts where technology products potentially have strong hedonic

attractions (Turel et al., 2010, p.53). A multi-dimensional, perceived value approach that
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could capture perceptions of both the utilitarian and hedonic values of an object was therefore

preferred.

Reviewing changes in the way aesthetics has become more important in consumer

marketing, Wang et al., (2013) propose aesthetic factors are visual stimuli that influence

behavioural reactions in accordance with the Stimulus-Organism-Response (SOR) paradigm,

such stimuli evoking both cognitive and emotional behavioural reactions (Jacoby, 2002).

Cue theory (Richardson et al. 1994; Lee and Lou, 1995/1996) supports the effect of such

stimuli on a consumer’s perceived value. Products are depicted as an array of extrinsic and

intrinsic cues. While extrinsic cues pertain to attributes that are not part of the physical

product (such the brand name, packaging and price), intrinsic cues pertain to attributes that

are inherent to a product (such as its material, design and appearance) that accord with the

aesthetic appreciation of a product and can give rise to consumer perceived value in that

product.

To ascertain if aesthetics can influence buyers’ decisions through the three different

dimensions of perceived value requires examining whether each dimension can influence

purchase intention, hence perceived value cannot be treated as a second-order construct

comprising the three dimensions. A significant body of research affirms that consumer

perceived value has a direct effect on purchase intention or a closely related concept,

11
willingness to buy, for both products and services (Chen and Dubinsky, 2003; Ashton et al.,

2010; Leelalkulthant and Hongcharu, 2012). While this is the expected path, aesthetic

principles are used in the design of new technology products, the intention being to fulfil

customers directly through the experience of beauty and appearance (Kumar and Garg, 2010).

Accordingly, it is possible that aesthetics can cause positive perceptions that may directly

lead to a buyer’s intention to purchase that product, justifying exploration of that direct path.
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Based on the prior literature, we ask:

• Research Question 1: What are the attributes of aesthetics?

• Research Question 2: How does aesthetics influence purchase intention?

Figure 1 links these questions and their associated hypotheses.

INSERT FIGURE 1

Aesthetics may influence purchase intention directly, or indirectly. Aesthetics can

have an indirect link to purchase intention via factors determining technology acceptance

(Van der Heijden, 2003), consistent with the concept of perceived functional value. As a

dimension of overall value, aesthetics’ indirect link with the intention to use virtual artifacts

such as ringtones has also been researched (Turel et al., 2010). Gallarza and Gil Saura (2006)

applied aesthetics to understand how it influences satisfaction and purchase intention in the

travel industry. Aesthetics was also used to measure how it influences customer decisions

while shopping online (Mathwick et al., 2001). Alternatively, aesthetics has been found to

have a direct association with purchase intention (Lee and Koubek 2010; Tzou and Lu, 2009).

Thus, we hypothesize

H1: Aesthetics has a direct positive impact on purchase intention.

12
Contradicting the view that aesthetics stands in the way of usability, Tractinsky (2004,

p.351) claims to have coined the phrase “beautiful is usable” in support of previous work

(Tractinsky et al., 2000) that perceptions of beauty influence perceptions of usefulness.

Similarly, Shin (2012, p. 581) argues that usability and aesthetics are interdependent, finding

that “users … perceived aesthetically pleasing smartphones as more usable compared to

devices with somewhat higher performance but lower aesthetics”.


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Aesthetics has influenced consumer decisions via utilitarian characteristics of

products in different information system contexts such as the usage of websites (Van der

Heijden, 2003), human–computer interaction (Tuch et al., 2012) and mobile commerce (Cyr

et al., 2006). However, although it has been argued that customers may assume that products

with an attractive design are functionally superior (Chaiken and Maheswaran, 1994), in the

mobile technology area there is little research investigating the association of aesthetics with

functional attributes (Shin, 2012), warranting examination of aesthetics’ effect on perceived

functional values.

Perceived functional value pertains to a consumers’ perceptions of a product or

service’s quality and functions (Yang and Jolly, 2009; Callarisa Fiol et al., 2011). There is

support that a consumer’s perception of functional value has a strong, positive relationship

with purchase intention (Bhaskaran and Sukumaran, 2007) and usage of a product (Butler et

al., 2016). Following Sheth et al. (1991), that consumer choice is a function of multiple,

independent consumer values including functional value, we hypothesize functional value’s

mediating role between aesthetics and purchase intention.

H2: Functional value is a mediator between aesthetics and intention to purchase.

In Sheth et al.’s (1991) theory of consumer values, social value is about choice

imagery with choices for highly visible products such clothing, cars and jewellery, driven by

13
their imagery. Aesthetic appreciation of an object may be informed through social interaction

and discourse (Leder et al., 2004) such that what is seen as aesthetically pleasing affects its

perceived social value; its perceived social desirability (Morton et al., 2013).

Social value stems from a product’s ability to reinforce a social self-concept

(Sweeney and Soutar, 2001). People prefer to buy products that are accepted by their social

group or that follow social norms (Wang, 2010; Lee, 2014). Positively perceived social value
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leads to a stronger buying intention (Vigneron and Johnson, 1999; Kim, Kim and Wachter,

2013). While much research has investigated the role of social value on purchase decisions

(Sweeney and Soutar, 2001; Callarisa Fiol et al., 2009), there is a paucity of research

investigating whether an object found aesthetically appealing can engender a perception that

it has social value which then influences the purchase decision. Following Sheth et al.,

(1991), that consumer choice is a function of multiple, independent consumer values

including social value, we hypothesize social value’s mediating role between aesthetics and

purchase intention.

H3: Social value is a mediator between aesthetics and intention to purchase.

Aesthetic characteristics of a product may stimulate favourable emotional reactions

leading to emotional attachment (Sánchez-Fernández and Iniesta-Bonillo, 2007; Nanda, et al.,

2008). Emotional value may be common among individuals that value beauty because the

beauty of an object may convey the perception that it may meet their needs (Holbrook, 1999).

In turn, emotional value has been identified as an important influence when

purchasing (Van der Heijden, 2003). The more positive is the emotion, the more likely that

purchase intention will occur (Tzou and Lu, 2009). An aesthetically appealing object may

engender emotional perceived value, an emotional bonding to a product (Lee and Koubek,

2010) that can lead to purchase intention (Hsiao, 2013). Following Sheth et al., (1991), that

14
consumer choice is a function of multiple, independent consumer values including emotional

value, we hypothesize that:

H4: Emotional value is a mediator between aesthetics and intention to purchase.

Method

Our target population was the current owner/user of smartphones in Australia. A

sample was recruited from a very large on-line, consumer panel recruited and run by a well-
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established Australian consumer research agency. Using a non-random probability sampling

procedure, the researchers specified the sample characteristics required. We specified adults

(>18 years) distributed by age groups with gender balance. Previous purchase of a

smartphone and current ownership for at least a year were specified to ensure familiarity and

experience with a smartphone. Australian residency for at least 5 years was specified to

ensure familiarity with Australian smartphone market conditions.

Measurement

All of the scales were adapted from prior research. The items are included in

Appendix 1 and 2. The scales for aesthetics and different dimensions of perceived value

constructs were adapted from previous research (Tables 1 and 2). The purchase intention

scale was drawn from Chandran and Morwitz (2005). All items were measured using a five-

point Likert scale, with the anchors being “strongly disagree” and “strongly agree.”

Experience using smartphones was measured in years of use.

To ensure the variables used were suitable for our context, two focus groups were

formed to discuss the questionnaire, remove any ambiguity and unpack the Aesthetics

construct to uncover its underlying dimensions (Bruhn et al., 2008). Insights from the focus

15
group were important in the process of adding more items for aesthetics (A27 and A12-

Appendix 1) and perceived value (FV8- Appendix 2).

To identify any more problems with the questionnaire (Choi et al., 2011), we sent 200

questionnaires to respondents using an email or Facebook message that included a clickable

hyperlink to Survey Monkey. Sixty-five completed the questionnaire (30% completion rate).

The panel was representative of all age groups, similar to the final study. Resulting from the
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pre-test, two items (A28 and A10- Appendix1) which had loadings of less than 0.3 were

deleted from the aesthetics scale (Hair et al., 2010). The majority of changes pertained to

rewording, sorting and elimination of some questions to make the questionnaire more

applicable to an Australian setting.

Data Collection and Analysis

Data Collection

After finalizing the survey instrument, the questionnaire was posted on the research

agency’s online survey website and the selected sample (783 persons meeting the selection

criteria) were asked to participate by completing the survey online. The survey was closed

after 7 days with 415 usable responses, indicating a response rate of 55%. Three control

variables were included to remove other possible explanations for the relationships among

constructs: gender (male/female), education level (less than high school to completed

university), and age in years. Specifically, the control variables included gender, age, and

education.

The descriptive statistics (Table 3) show females are slightly over-represented while

there is sufficient age and education dispersion. While the sample has a much smaller 65+

cohort than in the Australian population, this may reflect smartphone ownership differences

16
between age groups, something not tested. Educationally, those with at least a university

degree are over- represented and this is reflected in the employment of respondents- slightly

more than 50% of the respondents held professional, managerial/administrative/technician

and office positions.

INSERT TABLE 3
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Analysis and test for Reliability and Validity

To test a theoretical model with data from a free questionnaire where some items are

not “tied” to a particular set of constructs, we followed an “anchor variable approach”

recommended by Kock and Verville (2012). At the first stage, latent variables were formed

by aggregating the indicators supposed to load on them. Warp-PLS 4.0 was used for the

measurement purification process and confirmatory factor analysis. Warp-PLS uses variance-

based methods to analyse data which is distributional free, useful for non-normal or unknown

distributions (Chin, 2010). Because all the measurement items in this research are measured

on a Likert scale in which their normalities cannot be distributed, variance-based WARP-PLS

software is preferable to a covariance-based tool like AMOS.

Next, acceptable convergent validity in confirmatory factor analysis was used for

uncovering redundant variables (Wu et al., 2014).Thus, all correlations among variables

equal to or greater than 0.5 were found to belong to the same latent variable (Kline, 2011;

Hair et al., 2010). Moreover, the pattern matrix was formed by the loadings and cross-

loadings obtained by an oblique rotation of the structure matrix (Hair et al., 2010). Overall

appearance, which was measured by three items, was deleted because one of its indicators

had a low loading (0.3) and the other two had high loadings with both design and overall

appearance. Even by deleting each item, the AVE did not change and was lower than 0.7.

17
Thus, these items did not pass a satisfactory level of individual item reliability. Beauty also

was deleted because both of its variable indicators had loadings lower than 0.3.

In summary, 10 items (AE 3, 6, 7, 21, 22, 23, 24, 25, 26, 27) from aesthetics, one item

from functional value (FV 7) and one from the purchase intention (PI 4) construct had

loadings less than the recommended 0.5 (Hair et al., 2010; Kline, 2011), and were therefore

deleted (see Appendix 1 for each item content). Deletion of low loading items led to the
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confirmation of internal consistency, a substantial increase of composite reliability (Table 4) ,

higher factor loadings ( see Appendix 3 and 4) and high convergent validity as each latent

construct explained more than fifty percent of its item’s variance (Hair et al., 2010; Henseler

et al., 2015). Table 4 reports the findings from the assessment of the measurement model in

terms of inter-construct correlations, Cronbach’s alphas, composite reliabilities, and average

variance extracted (AVE) for each construct, as well as overall fit.

Composite Reliability (CR) and Cronbach Alpha (CA) coefficients greater than 0.7

were used to measure the reliability of the questionnaire (Hair et al., 2014). All indicators

were semantically related to the relevant latent factors and belonged to each other. However,

Jarvis et al. (2003) also suggest appraising the external validity of formative measures.

Variance inflation factors (VIFs) were also calculated for each latent variable to examine the

collinearity among latent variables. VIFs lower than 5 show no collinearity (Hair et al., 2010;

Kline, 2011).

Discriminant validity as part of a validity test was run to determine the correlation

among latent variables (see Table 4). The square root of the average variance extracted

(AVEs) for each latent variable was greater than any correlation between the latent variable

and others in the model (Hair et al., 2014) showing the indicators belonged to just one latent

factor.

18
INSERT TABLE 4

The validity, reliability, and collinearity results confirmed the data set as a basis for

variance-based, structural equation modelling (SEM) analysis. The appropriateness of the

first-order measure, but also the suitability of the indicators to measure their components

were confirmed.

In summary and answering RQ1, the latent factors of aesthetics were called Colour,
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Shape, Design and Touch. As shown in Table 4, Design had the greatest weight in Aesthetics

followed by Colour, Touch and Shape while Overall Appearance and Beauty were rejected

because of their low loadings or high cross loadings.

Results

Figure 2 depicts the SEM model used. The beta coefficients (β) (standardized partial

regression coefficients) show the strength of association between pairs of latent variables

linked by the arrows. All are significant at the p-value <.01 and <0.05 level (Hair et al.,

2014). Warp-PLS 4.0 applies a bootstrapping method (900 samples, sample size 415) to find

out whether different dimensions of perceived value have mediating roles (see Table 5).

INSERT FIGURE 2

INSERT TABLE 5

Answering RQ2, a direct link between Aesthetics and Purchase Intention is accepted

(Hypothesis 1). Because the direct relationship is significant but weak (R2 = 0.08), a check

was run on whether different components of perceived value influenced this relationship

positively or negatively when used as mediators. Thus, in order to assess whether aesthetics’

relationship was mediated by perceived functional value, Hypothesis 2, was assessed in the

19
first stage. As seen in Table 5, the indirect relationship through perceived functional value

(H2) was not supported (P-value= .07).

The indirect relationship between aesthetics and purchase intention via social value is

supported (p-value < .001). Since the indirect effect is significant (H3 is supported), social

value absorbs some of the direct effect (Table 5). The effect size is medium and aesthetics

can explain a high 60 % of the variance in purchase intention through social value.
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The indirect relationship between aesthetics and purchase intention via emotional

value (H4) is also supported (p-value < .001); emotional value is a mediator between

aesthetics and purchase intention. However, both effect size (f 2) and the coefficient

determinant (R2) are low. Although, the relationship between aesthetics and purchase

intention can be both direct and indirect when it is mediated by emotional value, only 20% of

the variance of purchase intention (R2 = 0.2) is directly explained by aesthetics and the rest is

explained by the indirect relationship via emotional value.

Differences between respondents based on their gender, age and education were also

tested in terms of the emotional value link. No significant differences were found to affect the

aggregate findings of the role of emotional value as a mediator between aesthetics and

purchase intention. Emotional value is not as strong a mediator as social value.

While aesthetics has the strongest influence on emotional value (β=0.6) and explains

35% variance of emotional value, it influences purchase intention more through social value.

Compared to emotional value (β= 0.10), social value has a stronger relationship with

purchase intention (β= 0.68) (see Figure 2). Aesthetics, could explain 55% (R2 = 0.55) of the

variance of purchase intention directly and indirectly through the social and emotional

dimensions of perceived value.

20
In order to understand the extent to which the variance of purchase intention is

directly explained by aesthetics and how much of the target construct’s variance is explained

by the indirect relationship via perceived social and emotional dimensions of value (the

mediator variables), the Variance Accounted For (VAF) was calculated (Hair et al., 2014).

β ( ) .
VAF= = =50 (1)
β ( ) β ( ) . .
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Since VAF is larger than 20% and less than 80%, a partial mediation is established.

Thus, the relationship between aesthetics and purchase intention can be both direct and

indirect when mediated by social value. Although the effect size is medium (0.1), aesthetics

could explain sixty percent of the variance of purchase intention (R2= 0.6) when mediated by

social value. The maximum and total effect that Aesthetics has on Purchase Intention is 0.3,

with an effect size of 0.1 which is moderate (p-value <.001, see Table 5).

Discussion

Three research issues into the role of aesthetics on purchase intention are addressed.

First, what are the components of aesthetics and their relationship with aesthetics? Swilley

(2012) was our starting point, with her proposal for three dimensions (Colour, Design and

Overall Appearance, the latter consisting of three components, Texture/Touch, Beauty and

Shape). In addition to testing the five dimensions ultimately used by Swilley (2012) Overall

Appearance was also tested as a separate dimension. Four different factors were confirmed:

Design, Colour, Touch and Shape. These factors each had a different weight in defining

aesthetics with none of the four particularly dominating; that is, all contributed to perceptions

of the aesthetics of a smartphone. To arrive at these dimensions a formative approach, rather

than the reflective approach used by Swilley (2012), was justified and used.

21
Design had the heaviest weighting (see table 4) supporting Brunner et al (2008) that

design is increasingly becoming an important strategic tool and a success factor for firms

offering personalised consumer durables. Colour was the second-most important attribute of

aesthetics, supporting Veryzer and Hutchinson‘s (1998) finding that, as part of a product’s

attributes (Kerfoot et al., 2003), colour can impact an aesthetic response. It attracts

consumers to products and increases sales (Grossman and Wisenblit, 1999).Support for touch
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as a determinant also confirms findings by Ernst and Banks (2002) that tactile information

can be used as a criterion to distinguish between stimuli when tactile information is used in

association with visual exploration. The finding that aesthetics is affected by tactile

information and that touch can influence aesthetics appreciation more than the visual input,

such as shape or colour (Jansson-Boyd and Marlow, 2007), is also confirmed for smartphones

and possibly for other devices that increasingly require touch in order to be used. Shape is

also a determinant of aesthetics although of slightly less importance, but consistent with

findings that it can become a competitive advantage for a product where shape is influenced

by social trends (Berkowitz, 1987).

Overall Appearance and Beauty were dropped because of unsatisfactory loadings.

Although our findings did not confirm Swilley’s (2012) use of beauty as a factor of aesthetics

this does not mean that individuals do not appreciate beauty. Participants may perceive

beauty as “an aesthetic representation which involves pure physicality” (Vacker and Key,

1993; p.486) and thus they might equate beauty with aesthetics rather than as a separate

dimension.

The second and third issues related to the relationship between aesthetics and

purchase intention. Previous studies had found a strong effect of aesthetics on user

preferences in different contexts (eg., Yamamoto and Lambert, 1994; Lee and Koubek,

22
2010). We found aesthetics had a significant, but relatively weak direct relationship with

purchase intention, compared with its indirect effects. This could be because of the nature of

digital products as shopping products (Li and Gery, 2000) with customers carefully

evaluating the value they may gain from an aesthetically pleasing smartphone before they

intend to purchase.

The indirect path of aesthetics’ effect on purchase intention through perceived value
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was complex. Aesthetics’ effect on emotional value was far stronger than for either functional

or social value, although the effects on the latter two were still significant. More surprising,

contrary to previous research (Tractinsky et al., 2000; Ben-Bassat et al., 2006; Lee and

Koubek, 2010; Angeli et al., 2006) and our hypothesis, the relationship between aesthetics

and perceived functional value was weak (R2 =.08), while there was no effect on purchase

intention. Purchase intention was influenced most strongly by perceived social value.

Further testing whether functional value strengthened either social or emotional value

also rejected that role. An explanation of this contrary finding will require more research.

Lin and Bhattacherjee (2010) found that, for interactive hedonic technologies, perceived

enjoyment and social usage are the core drivers of behavioural intention rather than perceived

usefulness and perceived use. In addition,the growing standardization of technology features

in smartphones (Reimann et al., 2010) may be responsible for diminishing the influence of

perceived functional value on purchase intention (Kim et al., 2013), especially if customers

expect the same functionality in any smartphone and thus place more emphasis on other

aspects of perceived value. Thus, the sample requirements of ownership and use of a

smartphone may have led to a discounting of the importance of functional value when

considering purchase intention. Whether first time purchasers would respond in the same way

would be useful further research.

23
Managerial implications

The model used in this research validates the positive impact of aesthetics on different

dimensions of perceived value and perceived value on purchase intention. The finding that

design, colour, touch and shape, all contribute to aesthetic appreciation of a smartphone,

creates challenges for marketers to understand the most appealing synthesis of these

attributes, to emphasise the need for this synthesis in new product development and to
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promote this synthesis in their integrated marketing communications. Linking appreciation of

a smartphone’s aesthetics directly and indirectly to purchase intention supports a more careful

consideration of how aesthetics can be used to benefit product development, promotional and

positioning and strategies.

Taking into account the specific aesthetic dimensions that were confirmed can assist

in the design of more personalized products that enable firms to better capture value from

their customers via unique visual appearance (Karjalainen and Snelders, 2009). Successful

product development focusing on a unique visual design could also reduce promotional costs

(Moon et al (2013). The capacity of designers to respond to the aesthetics preferences of

individual customers in this area also raises the possibility of greater involvement of

customers in the co-creation of value (Prahalad and Ramaswamy, 2004). Although the co-

creation of value is more commonly associated with service provision rather than

smartphones, based on student survey evidence from two countries Katz and Sugiyama

(2005, p.78) argue that “the creation and consumption of mobile phones becomes a multi-

party process”.

Confirmation of the strong links between aesthetic appreciation of a smartphone and its

perceived emotional and social values should also be taken into account in promotional

strategies. More nuanced promotional strategies should be considered based on the different

24
relationship strengths revealed by this study. Shifting promotional orientation from product

functionality to emphasise its interlinked emotional and social values could be particularly

useful in order to gain a competitive advantage. The link between aesthetics and perceived

values was strongest for emotional value. Further research into the emotional meanings

aesthetics’ evoke for this product and the value of such emotional connections (Lojacono and

Zaccai, 2012) could lead to more focussed and effective promotional strategies. However,
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social value played the most important mediating role in consumer purchase intention. In

countries where the smartphone penetration rate is high, customers are more likely to be

connected to their friends, families and referent groups potentially increasing the

psychological dependency that people have with their friends and peers (Walsh et al., 2009;

Wei and Lo, 2006), thus supporting the importance of also emphasising social value in

promotional campaigns.

Following Persaud and Azhar (2012), marketing strategies may need to focus on the role of

referent groups on customer purchase intention. In-group norms may influence customers to

choose a specific smartphone. This offers opportunities for better positioning in the

marketplace by the grouping of customers and objects in terms of the commonalities of their

aesthetic experience as well as their differentiation on the same bases. Such conditions show

the opportunity for marketers to explore all dimensions of customer value before choosing

their own appropriate market position. Such positioning in terms of pursuing a symbolic

design incongruent with the product category is urged by Brunner et al (2016, p.314), who

also cautions that, if this is not possible consumer benefits can be increased through more

aesthetic product design.

Limitations and Further Research

25
This study only explored the dimensions of aesthetics in general and did not examine

variations in specific dimensions; for instance, shape can take various forms, such as oval,

circular, rectangular, or square. Even design can be different based on the taste of customers.

Exploring the attributes of each latent variable of aesthetics appreciation could provide more

detailed insights about each dimension of aesthetics.

The perspective of aesthetics examined was subjective, drawing on respondent’s


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perception of what they perceived as aesthetically pleasing so that this could be linked to

their perceived values. Differences among individuals and the extent of those differences can

be better understood using the centrality of visual product scale (Bloch et al., 2003), but this

was beyond the scope of this study. Future research could assess which variables play an

important part in developing aesthetic appreciation. For example, do people from differing

socio-cultural backgrounds (Shin, 2012) differ in their aesthetic appreciation? Using the

centrality of visual product scale (Bloch et al., 2003) can help to explore important

differences between among individuals.

This study is product specific and further research should include other technology

products valued for their usefulness, such as tablets. The possibility of other variables

affecting the aesthetic appreciation of a product needs consideration. Some lifestyle factors

may control many consumption decisions (Hawkins and Mothersbaugh, 2010). Motivation

and experience may differentiate how we value aesthetics (Mothersill, 1984). Further

research could explore personal determinants of variations in the appreciation of aesthetics,

such as life style and demographic variables, and links to purchase intention.

The model presented in the research did not develop hypotheses about the existence

of variables moderating the relationship between factors affecting purchase intention, nor the

relationship between this and aesthetics. Generalisation could be enhanced by extending the

26
study to other countries with similar social, economic and development characteristics as

Australia.

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INSERT APPENDIX 1

INSERT APPENDIX 2

INSERT APPENDIX 3

INSERT APPENDIX 4

34
Table 1. Properties of Aesthetics
Dimension Description
Colour 1. Purchase decision is strongly influenced by cues, such as colour.
2. Consumers’ perception of an object can be revealed by their selected
colour choice.
3. Product colour can engage buyers and increase sales.
4. Aesthetic responses to a stimulus are influenced by colour.
5. Product quality is determined by its colour.
Design 1. Design of a product is its competitive advantage and success factor in the
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marketplace.
2. Design and aesthetics are interrelated as the physical form includes the
aesthetic components of the product (e.g. shape, colour).
Overall 1. Individuals are drawn by product appearance.
2. The appearance of a product has a strong impact on consumer appreciation
Appearance
of its quality, function and ease of use.

1. Influences evaluation of retail product offerings.


Texture/
2. Touch can affect customer's purchase decision even when there is no
Touch related description about a product.
3. Texture is important in the evaluation of products.
4. The ability to touch adds information to the purchase decision.

Beauty
1. Aesthetic value and utilitarian value, or beauty and use, need not be
distinct.
1. The ratio of the sides of a rectangular product or package can influence
Shape
purchase intentions and preferences and is related to marketplace demand.
2. Product shape can become a differential advantage when consistent with
social and cultural trends.
Source: Swilley, 2012

1
Table 2. Dimensions of Customers’ Perceived Value
Variable References Scale Items

1. Consistent quality done well,


Sheth et al. (1991); 2. Reliability
Functional Yang and Jolly (2009); 3. Reliable
Value Callarisa Fiol et al. 4. Good functions
(2009; 2011); Sweeny 5. Ease of use
and Soutar (2001) 6. Usefulness.
1. Grants social approval from others,
Social Sheth et al. (1991); 2. Makes me feel acceptable to others,
Value Sweeney and Soutar 3. Improves the way a person is perceived,
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(2001); Sánchez García 4. Gives a good impression to other people


et al. (2006); Roig 5. Many people I know buy these products
Fandos et al. (2006)
1. Gives me feelings of well-being,
Sweeney and Soutar 2. is exciting,
(2001);Yang and Jolly 3. Makes me elated ,
Emotional (2009); Bloch et al. 4. Feel relaxed while using,
Value (2003) 5. Feels good to have a product with a superior design,
6. Beautiful design makes our world a better place to
live

Table 3. Demographic Information of Respondents


Category N Percent*
Female 227 55 (50.3)
Gender

Male 188 45 (49.7)


Total 415 100
18-35 122 29 (33)
36-48 126 30 (26)
Age

49-64 132 32 (24)


65+ 35 8 (17)
Total 415 100
Less than high school 29 7
Education

Completed high school 108 26


Completed vocational training 110 26.5 (31)**
(TAFE)
Completed University 168 40.5 (23)**
Total 415 100
*Percentages in brackets are for the relative Australian population breakdown, excluding persons under 18
years. Source: Australian Bureau of Statistics (ABS), 2015, Cat. 3101. **.Percentages in brackets are the
Australian workforce breakdown. Source: ABS. 2010 Cat. 6227

2
Table 4. Measurement Statistics

Variables CA CR AVE VIF Weight Correlation among variables


(p-value)
1 2 3 4 5
Functional .9 .9 .7 1.4 n.a .85 -.34 .14 -.14 .15
Value a
Social Value a .9 .9 .8 3 n.a -.34 .92 .41 .73 .38
Emotional .9 .9 .7 2 n.a .13 .41 .84 .47 .58
Value a
Purchase .8 .9 .7 2.2 n.a -.15 .73 .44 .80 .25
Intention a
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Aesthetics b n.a n.a n.a 1.7 n.a .28 .38 .58 .25 n.a
a
Colour .8 .9 .7 1.1 .39(.001) .86 .22 .26 .27
Shape a .8 .9 .7 1.3 .23(.001) .22 .83 .33 .49
a
Touch .9 .9 .7 1.3 .36(.001) .26 .33 .87 .42
a
Design .9 .9 .8 1.5 .41(.001) .27 .49 .42 .89
Notes: n.a: not applicable, a: Reflective construct, b: Formative construct, the bold numbers on the diagonal are the
square root of the AVE, CR: Composite reliability, CA: Cronbach Alpha, AVE: Average Variance Extracted, VIF:
Variance Inflation Factor

Table 5. Hypotheses Results

Effect
P- 2
Hypothesis Estimate Measure H0-Result R Size
value
H1 AE PI β coefficient =.25 .01 Accepted .08 .07
H2 AE FV PI ------ .07 Rejected

H3 AE SV PI Indirect Effect = 0.3 .001 Accepted 0.6 0.1


H4 AE EV PI Indirect effect = 0.2 .027 Accepted 0.2 0.1

Total effects 0.1

(Indirect + Direct
effect) = 0.3

Notes: AE: Aesthetics, FV: Functional Value, SV: Social Value, EV: Emotional Value, PI: Purchase Intention,
Effect Size: 0.02: small, 0.15: medium, 0.35: large, *: Potential links

3
Appendix 1. Items of Aesthetics

Item
dimension Items
number
A1 I do not care about the colour of my smartphone.
A2 Smartphones should come in different colours.
A3 The colour of my smartphone means a lot to me.
A4 I should be able to choose a smartphone that is multi-coloured
A smartphone should have contrasting colours that accent its
A5
presence.
Colour A smartphone should come in bright colours such as red, orange , and
A6
yellow
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Smartphones should come in muted colours such as brown, black,


A7
and beige.
A8 The colour of my smartphone should be attention getting.
A9 The colour of my smartphone should be desirable.
Design I should be able to customize the setting or interface of my
A10
smartphone the way I want.
The design of my smartphone based on what is available such as its
A11
shape, size, and weight should be unique to me.
A12 The design of my smartphone means a lot to me.
A13 The design of my smartphone should be attention getting.
Beauty The aesthetics of my smartphone means as much to me as its
A14
technology.
A15 Shape I like the shape (square, oval, smooth edge) of my smartphone
A16 The shape of a smartphone should be pleasing to the eye.
A17 I should enjoy looking at the shape of my smartphone.
A18 The shape of a smartphone means a lot to me.
A19 Touch The feel of my smartphone is very important to me.
A20 The texture of my smartphone means a lot to me.
Overall The overall appearance of my smartphone means a lot to me.
A21
appearance
Overall I am more concerned with the capability of my smartphone such as
A22 appearance playing games or running different programs at the same time rather
than its looks.
Overall The look of a smartphone product can become out dated quickly (the
A23
appearance shape, weight, and screen).
A24 Design Functionality means more to me than the design of my smartphone
A25 Design I care about the design of my smartphone.
A26 Beauty The beauty of my smartphone means a lot to me.
A27 Design The weight of the smartphone means a lot to me.
A28 Beauty The durability of my smartphone is very important than beauty to me.
Touch The feel of the surface of my smartphone such as its smoothness is
A29
very important to me
Touch The senses conveyed by my smartphone such as coolness to touch are
A30
very important to me
Note: A: Aesthetics

4
10 items (AE 3, 6, 7, 21, 22, 23, 24, 25, 26, 27) had loadings less than the
recommended 0.5 (Hair et al., 2010; Kline, 2011), and were therefore deleted.

Appendix 2. Items of Perceived Value

Item
Items
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number
FV1 I want a smartphone with a layout, which is easy to follow
FV2 I want a smartphone with the highest reliability
FV3 I want a smartphone with a high degree of functionality
FV4 I want a smartphone which is easy to use
I want a smartphone which is useful based on its technical capabilities like a
FV5
powerful processor or running different program at the same time
I want a smartphone which is durable in terms of damage protection or battery
FV6
life
I want a smartphone with many different software applications for different
FV7
purposes
FV8 I want a smartphone that is versatile like being good on texting and calling
I seek the approval of my smartphone from my families, friends, or co-workers/
SV1
peers
I seek the acceptance of my smartphone by my family, friends, or co-workers/
SV2
peers
I seek to improve the way I am perceived by my family, friends, or co-workers/
SV3
peers
I seek to impress my family, friends, or co-workers/ peers through the purchase of
SV4
my desired smartphone
SV5 I seek to buy the smartphone that my family, friends, or co-workers/ peers select
SV6 I seek to buy a smartphone that can be an expression of myself .
EV1 I feel excited when I have my desired smartphone
EV2 I feel relaxed while using my desired smartphone
EV3 I feel good that my smartphone is superior to other smartphones.
EV4 I am happy when I am using my desired smartphone.
EV5 I feel my life is better since I bought my smartphone
EV6 Being noticed by others while using my desired smartphone is important to me.
PI1 It is probable that I will purchase my ideal smartphone if it is available
PI2 It is certain that I will purchase my ideal smartphone if it is available
PI3 There is chance that I will buy my ideal smartphone if it is available
PI4 I am likely that I will buy my ideal smartphone if it is available
Note: FV: Functional Value, SV: Social Value, EV: Emotional Value, PI: Purchase Intention

5
Appendix 3. Factor loadings of aesthetics items

Items Colour Shape Touch Design


q9-2 (0.88)
q9-1 (0.86)
q9-8 (0.87)
q9-5 (0.87)
q9-9 (0.85)
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q9-4 (0.80)
q9-17 (.85)
q9-18 (.75)
q9-16 (.88)
q9-15 (.85)

q9-19 (.76)
q9-20 (.90)
q9-29 (.89)
q9-30 (.91)
q9-13 (.93)
q9-12 (.87)
q9-11 (.87)

6
Appendix 4.

Perceived Value and Purchase Intention Item Loadings

Emotional
Social Purchase
Functional Value
Items Value Intention
Value (FV) (EV)
(SV) (PI)
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q10-1 (.89)
q10-2 (.90)
q10-3 (.79)
q10-4 (.87)
q10-6 (.83)
q10-8 (.78)
q11-1 (.95)
q11-2 (.94)
q11-4 (.89)
q11-5 (.91)
q12-1 (.79)
q12-2 (.95)
q12-3 (.73)
q12-4 (.95)
q12-5 (.74)
q13-1 (.77)
q13-2 (.95)
q13-3 (.91)

7
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Figure 1. Proposed Theoretical Model

Figure 2: PLS-Based Structural Equation Model.

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