INFORMATION TECHNOLOGY, E-DATING, AND MARKETPLACE ACTIVITIES by ANGELINE GRACE CLOSE (Under the direction of GEORGE M. ZINKHAN) ABSTRACT This dissertation focuses on three marketplace activities and their associated consumer behaviors: a) onground “o-dating”, b) electronic “e-dating”, and c) Valentine’s Day (e.g., as it is associated with romantic rituals and holiday retail and e- tail). Multiple methods are used to address the research objectives. This dissertation is a series of four research chapters, which lead to a concluding chapter focusing on the implications to marketing theory and practice, limitations, and avenues for scholars to extend this research. INDEX WORDS: by subject: Consumer behavior, O-dating, Information technology, Cultural shift, E-dating, Online community, Virtual relationships, E-tail, Holiday retail, Market resistance by method: Multi-method study, Survey, Depth interview, Focus group, Consumer observation, Internet diary INFORMATION TECHNOLOGY, E-DATING, AND MARKETPLACE ACTIVITIES by ANGELINE CLOSE A.B.J, The University of Georgia, 2000 M.M.C., The University of Georgia, 2002 A Dissertation Proposal Submitted to the Graduate Faculty of The University of Georgia in Partial Fulfillment of the Requirements for the Degree DOCTOR OF PHILOSOPHY ATHENS, GEORGIA 2006 ©2006 Angeline Grace Close All Rights Reserved INFORMATION TECHNOLOGY, E-DATING, AND MARKETPLACE ACTIVITIES by ANGELINE GRACE CLOSE Major Professor: George M. Zinkhan Committee: Spencer Tinkham Richard Watson Electronic Version Approved: Maureen Grasso Dean of the Graduate School The University of Georgia May 2006 iv DEDICATION To family, friends, and consumers. v ACKNOWLEDGEMENTS I express sincere appreciation to each individual of the committee, Spencer Tinkham, Richard Watson, and George M. Zinkhan for their guidance in the preparation of this dissertation research. Especially, I thank George Zinkhan for drawing me to an academic career in marketing and for being an inspiring mentor and role model. I also express gratitude towards my professors of advertising and marketing for shaping my knowledge: Grady College of Journalism and Mass Communication: Spencer Tinkham, Ruth Ann Lariscy, Barry Hollander, James Hamilton, Andy Kavoori, Otto Smith, Karen King, Eli Lester Roushanzimir, Nathanial Kohn, Lee Becker, J. Thomas Russell, Dean Krugman, and Len Reid Terry College of Business: George Zinkhan, Richard Fox, Thomas Leigh, Richard Watson, Srinivas Reddy, Rajiv Grover, Cara Peters, Ashotush Dixit, Christopher Cornwell The University of Georgia: The University of Georgia has provided me access to a thorough and well-rounded education. I was exposed to subjects from Weberian sociology to entomology to calculus. I further appreciate the Study Abroad programs, the Spanish department and Delta Zeta. Each helped shape my character and provided a solid foundation for graduate study. vi TABLE OF CONTENTS Page DEDICATION………………………….…………………………………………….iv ACKNOWLEDGEMENTS…………………………………………………………..v CHAPTER 1 INTRODUCTION, LITERATURE REVIEW, AND DISSERTATION STRUCTURE………………….…………………………………………......1 2 ROMANCE AND THE INTERNET: THE E-MERGENCE OF E- DATING…………………………………………………………………….23 3 A HOLIDAY LOVED AND LOATHED: A CONSUMER PERSPECTIVE OF VALENTINE’S DAY………..……………………………………………...53 4 A MULTI-METHOD INQUIRY OF VALENTINE’S DAY: CONSUMER PERSPECTIVES AND RETAIL STRATEGY…........... 87 5 MARKET RESISTANCE AND VALENTINE’S DAY: A RE-EVALUATION OF RESISTANCE THEORIES………………………………………………162 6 CONCLUSION…………………………………………………………………238 7 APPENDICES OF THE DISSERTATION……….…………………………..253 1 CHAPTER 1 INTRODUCTION, LITERATURE REVIEW, AND DISSERTATION STRUCTURE 2 INTRODUCTION "All our knowledge falls within the bounds of possible experience." -Immanuel Kant Expanding the Bounds of Possibility with Technology. As the philosopher Immanuel Kant eloquently points out, our knowledge falls within the realm of what is (humanly) possible to experience. Perhaps if Kant were alive today, in the midst of technological advancements and high-speed connections, he would point out that some experiences do not necessarily exist in the onground “lived” world. In the 21st century, experiences exist in the mind, in cyberspace, or in a combination of these environments. The boundaries of possible human experiences are expanding, along with technology, on a daily basis. We are in the midst of a paradigm shift- a digital revolution, due to the emergence of the Internet into modern culture and society. Just as individuals court each other with peer-to-peer (i.e., P2P) interaction, marketers, advertisers, businesses, and organizations should court the digital revolution. Romancing the Digital Revolution. It is important to consider the digital revolution within the context of P2P exchange and marketplace activities. Some examples of related marketplace activities include dating, gift exchange, entertainment, leisure activities, and sports. Consider the marketplace activities associated with dating and electronic dating (i.e., e-dating). Dating traditionally has resulted from a face-to-face interaction, or by third party matchmakers (e.g., friends, family members). E-dating is an activity in which a consumer, using electronic devices and an Internet connection, seeks interaction with other peers with a potential for romance. Computer-mediated- 3 communication (i.e., CMC) is the means of fostering the P2P interaction. P2P networks, such as e-dating, are one of the e-services that have experienced the most growth in the numbers of visitors and subscribers. As implied above, there are many changes in human behavior and marketplace activities that result from emerging information technologies (i.e., the Internet). Of course, there are too many to summarize all in one study. This dissertation focuses on three marketplace activities and their associated consumer behaviors: a) onground dating, b) e- dating, and c) Valentine’s Day (e.g., as it is associated with romantic rituals). These activities are chosen for study because they represent an area of consumer behavior that is rapidly evolving. Much of consumer behavior has focused on a single consumer’s relationship to a business or organization; however, it is important to embed the importance in peer-to-peer (i.e., P2P) communication and relationships. Studying consumer behavior through the lens of dating enables researchers to look at how organizations play a role in initiating, facilitating, fostering, and influencing P2P relationships. Furthermore, companies are often marketing and selling goods, especially entertainment and leisure activities, to a couple—which involves synergies over and beyond marketing separately to each partner. One of the most important advertising and marketing times for romantically-related goods is Valentine’s Day—a holiday traditionally associated with celebrating romantic relationships. Holiday e-tail sales rose twenty percent in the U.S., (to $13.2 billion) from FY2004-2005 (Forrester Research 2005), and Valentine’s Day accounts for a substantial portion of e-sales as it is one of the only true “gift holidays” in the U.S. A consumer-driven study of the Valentine’s Day market has 4 potential to generate a wide variety of managerial implications (e.g., for retailers and e- tailers) and to develop and extend theory. Dating and Valentine’s Day activities are coherently linked in several ways. They all can be organized around a central area of romantic consumer rituals. Understanding of these rituals may provide insight to consumer-based marketing strategies in many industries (e.g., jewelry, luxury, gift, floral, greeting card, confectionary, beauty, travel). Ritual Behavior and Romance Ritual behaviors are a key concept in this dissertation. A ritual is a symbolic, scripted, expressive activity composed of multiple, episodic, behaviors (Rook 1985). This type of activity is carried out with a sense of formality and seriousness, and is repeated over time (Rook 1985). Although there are many different types of rituals (e.g., religious, aesthetic, rites of passage, cultural, family, personal), the focus here is on dating rituals and Valentine’s Day rituals. The two specific cases represent examples of personal, small group, aesthetic, family, religious, and cultural rituals. This category of consumption is worthy of focus for a number of reasons. First, dating and related marketplace activities represent key groups of socio-culturally practices in the U.S. Many individuals and couples recognize Valentine’s Day as a specific period to “carry out” these dating rituals. Second, dating and “the romantic holiday” represent a latent cultural tension, where there may be elements of hesitancy, uneasiness, and resistance associated with these practices, trends, institutions, observances, and/or festivities. Third, dating, e-dating, and Valentine’s Day are associated with massive amounts of consumer spending in their associated industries. 5 For example, e-dating has become over a billion dollar (annual) industry (Online Personals Watch 2005). Objectives of this Dissertation There are seven main objectives of this dissertation. (See Table 1.1 for a summarized description of the chapters). The majority of the objectives pertain to the Internet’s emergence; the remaining two investigate content in the onground marketplace. All objectives are currently investigated in the context of the U.S. marketplace. The seven broad objectives are: 1. To explore the use of the Internet to initiate and/or facilitate online and onground dating among young