Source: OHIO STATE UNIVERSITY submitted to NRP
RURAL MARKET RETAILERS: BELIEFS ABOUT INTERNET USE & CONDITIONS FOR USE
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0202077
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2004
Project End Date
Sep 30, 2008
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
OHIO STATE UNIVERSITY
1680 MADISON AVENUE
WOOSTER,OH 44691
Performing Department
COLLEGE OF HUMAN ECOLOGY
Non Technical Summary
It is unclear how rural retailer beliefs about 1) ease of use and, 2) usefulness of the Internet in increasing efficiency and improving customer relationships influence intentions to use the Internet, and subsequently affect perceptions of business success. The objective of this research project is to determine the influence of beliefs about usability and usefulness of the Internet on rural retailer use of the Internet and business success.
Animal Health Component
(N/A)
Research Effort Categories
Basic
100%
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60262303100100%
Goals / Objectives
Between 1990 and 1995, approximately 40,000 rural retail businesses (9.2%) ceased operation across the country. Ohio saw the loss of over 2,500 rural establishments (5.5%). We know that retailers who operate efficiently and who build effective customer relationships tend to be successful. Generally, operating efficiency has been associated with competitive equity, while strong customer relationships have been associated with competitive success. It has been suggested that retailers can use the Internet to 1) increase the efficiency of their operations, and 2) create new and more effective customer relationships. Evidence suggests however, that retailers in rural markets are not using the Internet much. It is unclear how rural retailer beliefs about 1) ease of use and, 2) usefulness of the Internet in increasing efficiency and improving customer relationships influence intentions to use the Internet, and subsequently affect perceptions of business success. The objective of this research project is to determine the influence of beliefs about usability and usefulness of the Internet on rural retailer use of the Internet and business success. Objective 1: Determine the influence of beliefs about usability and usefulness on rural retailer intention to use the Internet. Objective 2: Determine the influence of beliefs about usefulness and intention to use the Internet on rural retailer business success. Objective 3: Test differences in beliefs, intentions, use, and business success by previous Internet experience and demographic characteristics of the store owner. Objective 4: Analyze differences in Internet acceptance by type of county.
Project Methods
The goal of the research proposed is to test the modified TAM model on rural market retailers, controlling for Internet experience of the business owner, demographic characteristics of the owner, and socioeconomic conditions of retailer's county. The approach to test these hypotheses is to collect survey data from rural retailers regarding beliefs about Internet use for their business, intentions to use and/or use of the Internet, and business success, and link survey data to county economic data of respondent. The rationale underlying these objectives is that rural retailers need to understand how to use the Internet in today's information economy. Investing in Internet uses that increase operating efficiency or improve strategic positioning is wise if they are associated with business success. We need to understand the relationship between rural retailer beliefs about ease of use and usefulness of the Internet and business success in order to design programming that will be effective in helping them use the Internet in ways that will improve their success. If beliefs about using the Internet to create operational efficiency are associated with business success, programming can be created to educate rural retailers about how to use the Internet to save time and money. At the completion of the research, the researcher expects to have information on the relationship between beliefs about ease of use and usefulness of the Internet, intention to use the Internet, and business success.

Progress 10/01/04 to 09/30/08

Outputs
OUTPUTS: Activities include: 1) continuing analysis of data to examine more complex relationships among variables influencing Internet use of rural retailers, 2) submission of USDA-NRI-Rural Development grant (funded in 2008) investigating the role of rural retailers in community resiliency, 3) submission of OARDC SEEDS grant (2004) to fund data collection for this project, 4) recruitment of masters student (Jeanette Keene) in data collection phase resulted in thesis (separate data collection) examining technology assimilation among rural retailers, 5) recruitment of doctoral student (Jiyoung Kim) in community interviews as part of data collection process resulted in dissertation investigating consumer views of rural community shopping (separate data collection) and one conference presentation on the topic. Key event for project was panel presentation at professional conference (International Textile & Apparel Association) addressing relevance of rural retail and rural economic development research in the profession (Miller et al (2005)). Information discovered from the research identifies specific beliefs that influence Internet adoption and information is being disseminated as indicated below. Several collaborations on the theme of rural retail, rural retailer technology use, and rural community have emerged during this project: 1) USDA-NRI Rural Development team (principle investigators: Linda Niehm, Barbara Frazier; mentor: Nancy Miller) who have lead efforts to generate interest in and research investigating the role of retailers and technology in rural communities, 2) Central Business District Measures of Success team (Greg Davis, Nancy Bowen-Ellzey, Jill Clark, Elena Irwin, Maria Manta-Conroy) to identify factors that differentiate successful central business districts in rural communities, and 3) rural grocery retail researchers (Ernst, Hooker, Skolmutch, Sanders & Kalb) collected Internet use data from rural grocery retailers and published 2 papers explaining the role of technology for rural grocers. Dissemination: 1) one manuscript based on Keenes thesis research investigating technology assimilation of rural grocery retailers was submitted for review in scholarly journal, 2) one manuscript presenting analysis of the influence of beliefs about Internet on Internet use was submitted for review to scholarly journal, 3) presentation on characteristics of Internet-using rural retailers and factors influencing broadband use among rural retailers at USDA-ERS conference Broadband in a Post-Modern Economy, 4) two presentations at Ohio Farm Science Review: State of Rural Retailing (2006), Broadband adoption by Rural Retailers (2008), and 5) an online research report explaining how rural retailers in Ohio are using the Internet (Berning, et al (2004)). PARTICIPANTS: Individuals involved in the project: 1) Leslie Stoel: principal investigator and project director for entire project, 2) Jeanette Keene: graduate assistant, performed data entry and ran descriptive analysis of data, 3) Jiyoung Kim: graduate assistant, participated in qualitative interviews during first phase of data collection and ran preliminary data analysis, 4) Casie Berning: undergraduate honor's student ran some analyses and created a website (through TELR) to showcase the project results, 5) Stan Ernst: collaborated on qualitative interviews during first phase of data collection. Involvement in the project was a professional development experience for Keene and Kim as they learned about both qualitative and quantitative data collection, data entry and data analysis. TARGET AUDIENCES: Target audiences for results of this research include retailers in rural communities, technology providers in rural communities, economic development professionals in rural communities, and public policy makers. The results could be useful to extension agents in community development, rural/urban interface, and/or small business/entrepreneurship. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
This research generates knowledge that illuminates rural retailer beliefs about the Internet that influence acceptance or lack of acceptance. This information will be useful to public policy makers as they determine appropriate funding levels for Internet infrastructure across the US. It will be communicated to a congressional audience in late September 2008 in an effort to inform upcoming public policy decisions and influence the condition of Internet infrastructure in rural communities. In addition, the data provide evidence showing how rural retailers are using the Internet for their business. Evidence shows rural retailers are using the Internet primarily to increase operational effectiveness (e.g. efficiency) and not to improve their strategic positioning (e.g. relationships with key customers). The strategic positioning uses are the ones associated with long-term competitive advantage, and hence long-term success. Therefore, educational efforts need to focus on changing the actions of rural retailers by educating them about the long-term positive effects of using the Internet for strategic positioning. Once the manuscript conveying this information is published, lay articles will be dispatched to appropriate extension outlets.

Publications

  • Berning, C., Stoel, L., Ernst, S. & Hooker, N. (2004). How are Rural Retailers in Ohio Using the Internet AED (Agricultural, Environmental and Development) Economics Reports Series, College of Food, Agricultural, and Environmental Sciences, The Ohio State University. Available online at: http://aede.osu.edu/resources/docs/pdf/F8003B2W-A3QL-Y5OF-ML5870UE6I0 QJNBL.pdf


Progress 01/01/06 to 12/31/06

Outputs
Interviews were completed, measurement scales were developed and pretested, and IRB approval was received. A survey was mailed to 2337 retail store owners in late Winter 2006 and responses were received from 210 stores, giving a response rate of 9%. From those, 29 responses were deleted due to significant missing data, leaving 181 responses for analysis. Reliabilities for all scales are acceptable. Hypothesis testing is underway.

Impacts
This research is expected to illuminate rural retailer beliefs about the Internet that influence acceptance or lack of acceptance, allowing educators to understand facilitators and barriers to use and design programming accordingly.

Publications

  • No publications reported this period


Progress 01/01/05 to 12/31/05

Outputs
Ohio pilot data were analyzed in Autumn 2004. A research report was written and posted on the AEDE Report Series website (Berning, Stoel, Ernst and Hooker) late in Autumn 2004. A measurement development manuscript was written during Winter, Spring, and Summer 2005 and submitted to an information systems journal in Autumn 2005. This manuscript is currently being revised to submit to a small business journal. During the Summer of 2005, interviews with 17 retailers in 7 rural counties were conducted to refine questions for upcoming survey. Three more retailers in one rural county will be interviewed after holiday season and inventory, in late January 2006. Survey revision and Human Subjects Approval form are in process at close of Winter 2005.

Impacts
This research is expected to illuminate rural retailer beliefs about the Internet that influence acceptance or lack of acceptance, allowing educators to understand facilitators and barriers to use and design programming accordingly.

Publications

  • No publications reported this period