Exploring consumer preferences in cloud archiving – a student's perspective

Cloud storage has seen an increasing rise in demand and diffusion. Consequently, the cloud storage market is also becoming an increasingly commoditised market. That is, homogenous products are offered at equal prices, and this offer makes it more difficult for cloud storage providers to generate revenue and differentiate themselves from their competitors. Therefore, it is vital for providers to precisely understand customer preferences so that these can be targeted with appropriate services. To examine these preferences, we conduct a choice experiment and analyse choice decisions gathered from 340 German students by means of a conjoint analysis. We perform an individual-level analysis of preferences, which reveals significant differences and heterogeneity within the sample. By using a subsequent cluster analysis, we identify three distinct customer segments that also show significant differences in, for example, the perceptions of information privacy and risks. Our findings contribute to the literature by uncovering the preference structure and trade-offs that users make in their choice of storage services when employed for the purpose of archiving. We conclude the study with a discussion of practical implications that can aid cloud storage providers in service design decisions, and highlight the limitations associated with our research approach and drawn sample.

[1]  M. Wedel,et al.  The No—Choice Alternative in Conjoint Choice Experiments , 2001 .

[2]  Detmar W. Straub,et al.  A Practical Guide To Factorial Validity Using PLS-Graph: Tutorial And Annotated Example , 2005, Commun. Assoc. Inf. Syst..

[3]  Katarina Stanoevska-Slabeva,et al.  Platform as a Service - A Conjoint Study on Consumers' Preferences , 2012, ICIS.

[4]  Thomas Hess,et al.  Service Quality in Software-as-a-Service: Developing the SaaS-Qual Measure and Examining Its Role in Usage Continuance , 2011, J. Manag. Inf. Syst..

[5]  Paul E. Green,et al.  Thirty Years of Conjoint Analysis: Reflections and Prospects , 2001, Interfaces.

[6]  Frank Teuteberg,et al.  Understanding the Cloud Computing Ecosystem: Results from a Quantitative Content Analysis , 2011, Wirtschaftsinformatik.

[7]  Dorothy E. Leidner,et al.  Review: A Review of Culture in Information Systems Research: Toward a Theory of Information Technology Culture Conflict , 2006, MIS Q..

[8]  John C. Tang,et al.  That syncing feeling: early user experiences with the cloud , 2012, DIS '12.

[9]  Thomas Hess,et al.  Drivers of SaaS-Adoption – An Empirical Study of Different Application Types , 2009, Bus. Inf. Syst. Eng..

[10]  Dave Durkee,et al.  Why Cloud Computing Will Never Be Free , 2010, ACM Queue.

[11]  Jacquelyn S. Thomas,et al.  Toward an Understanding of Industry Commoditization: Its Nature and Role in Evolving Marketing Competition , 2010 .

[12]  Dirk Heerwegh,et al.  An Investigation of the Effect of Lotteries on Web Survey Response Rates , 2006 .

[13]  Eric N. Wiebe,et al.  Cloud computing adoption and usage in community colleges , 2011, Behav. Inf. Technol..

[14]  A. Daly,et al.  Use of the logit scaling approach to test for rank-order and fatigue effects in stated preference data , 1994 .

[15]  I. Ajzen The theory of planned behavior , 1991 .

[16]  D. O. Sears College sophomores in the laboratory: Influences of a narrow data base on social psychology's view of human nature. , 1986 .

[17]  Rüdiger Zarnekow,et al.  Acceptance of Health Clouds - a Privacy Calculus Perspective , 2014, ECIS.

[18]  John M. Rose,et al.  Applied Choice Analysis: A Primer , 2005 .

[19]  Ali Sunyaev,et al.  Cloud Service Certifications: Measuring Consumers' Preferences For Assurances , 2013, ECIS.

[20]  Stephan Manning,et al.  From Blind Spots to Hotspots: How Knowledge Services Clusters Develop and Attract Foreign Investment , 2010 .

[21]  Mickael Bech,et al.  Does the number of choice sets matter? Results from a web survey applying a discrete choice experiment. , 2011, Health economics.

[22]  Ritu Agarwal,et al.  A Conceptual and Operational Definition of Personal Innovativeness in the Domain of Information Technology , 1998, Inf. Syst. Res..

[23]  Frank Teuteberg,et al.  Sustaining accessibility of information through digital preservation: A literature review , 2013, J. Inf. Sci..

[24]  Florian Heiss,et al.  Discrete Choice Methods with Simulation , 2016 .

[25]  Frank Teuteberg,et al.  "May I help You?" Increasing Trust in Cloud Computing Providers through Social Presence and the Reduction of Information Overload , 2014, ICIS.

[26]  Ali Sunyaev,et al.  Moving in the Right Direction?: Mapping literature on Cloud Service Certifications' Outcomes with Practitioners' Perceptions , 2014, ECIS.

[27]  Oliver Günther,et al.  Investigating the Value of Privacy in Online Social Networks: Conjoint Analysis , 2009, ICIS.

[28]  Henrik Sattler,et al.  Commercial Use of Conjoint Analysis , 2008 .

[29]  Detmar W. Straub,et al.  Trust and TAM in Online Shopping: An Integrated Model , 2003, MIS Q..

[30]  Giuseppe Riccardi,et al.  How may I help you? , 1997, Speech Commun..

[31]  Thomas Hess,et al.  The Advertising Effect of Free -- Do Free Basic Versions Promote Premium Versions within the Freemium Business Model of Music Services? , 2013, 2013 46th Hawaii International Conference on System Sciences.

[32]  Raúl Gracia Tinedo,et al.  Actively Measuring Personal Cloud Storage , 2013, 2013 IEEE Sixth International Conference on Cloud Computing.

[33]  John M. Rose,et al.  Applied Choice Analysis: List of tables , 2005 .

[34]  D. Teece Business Models, Business Strategy and Innovation , 2010 .

[35]  David A. Hensher,et al.  Not bored yet – revisiting respondent fatigue in stated choice experiments , 2012 .

[36]  M. Fishbein A Reasoned Action Approach to Health Promotion , 2008, Medical decision making : an international journal of the Society for Medical Decision Making.

[37]  Scott B. MacKenzie,et al.  Construct Measurement and Validation Procedures in MIS and Behavioral Research: Integrating New and Existing Techniques , 2011, MIS Q..

[38]  Peter E. Rossi,et al.  Hierarchical Bayes Models , 2006 .

[39]  Keith Chrzan,et al.  Three kinds of order effects in choice-based conjoint analysis , 1994 .

[40]  Richard G. Netemeyer,et al.  Price Perceptions and Consumer Shopping Behavior: A Field Study , 1993 .

[41]  Terry S. Overton,et al.  Estimating Nonresponse Bias in Mail Surveys , 1977 .

[42]  Zoe L. Jiang,et al.  Privacy-Preserving Public Auditing for Secure Cloud Storage , 2013, IEEE Transactions on Computers.

[43]  Paul Jen-Hwa Hu,et al.  Incorporating User Perceptions and Product Attributes in Software Product Design and Evaluation , 2012, ICIS.

[44]  Srdjan Capkun,et al.  Home is safer than the cloud!: privacy concerns for consumer cloud storage , 2011, SOUPS.

[45]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[46]  Frank Teuteberg,et al.  Design and implementation of a community platform for the evaluation and selection of cloud computing services: a market analysis , 2011, ECIS.

[47]  Greg M. Allenby,et al.  Using Extremes to Design Products and Segment Markets , 1995 .

[48]  Andrew Lloyd,et al.  Conjoint analysis applications in health--a checklist: a report of the ISPOR Good Research Practices for Conjoint Analysis Task Force. , 2011, Value in health : the journal of the International Society for Pharmacoeconomics and Outcomes Research.

[49]  D. Wittink,et al.  Commercial Use of Conjoint Analysis: A Survey , 1982 .

[50]  Philippe Cattin,et al.  Commercial Use of Conjoint Analysis: An Update , 1989 .

[51]  Daniel J. Veit,et al.  The Role Of Uncertainty In Cloud Computing Continuance: Antecedents, Mitigators, And Consequences , 2013, ECIS.

[52]  Helen Kelley,et al.  Research Commentary - Generalizability of Information Systems Research Using Student Subjects - A Reflection on Our Practices and Recommendations for Future Research , 2012, Inf. Syst. Res..

[53]  Peter E. Rossi,et al.  Bayesian Statistics and Marketing , 2005 .

[54]  P. Green,et al.  Conjoint Analysis in Consumer Research: Issues and Outlook , 1978 .

[55]  Anol Bhattacherjee,et al.  Beginning SAP R/3 Implementation at Geneva Pharmaceuticals , 2000, Commun. Assoc. Inf. Syst..

[56]  Kazushi Nishimura,et al.  Design and Analysis of Choice Experiments Using R: A Brief Introduction , 2008 .

[57]  Paul E. Green,et al.  Conjoint Analysis in Marketing: New Developments with Implications for Research and Practice , 1990 .

[58]  G. Tellis,et al.  Best Value, Price-Seeking, and Price Aversion: The Impact of Information and Learning on Consumer Choices: , 1990 .

[59]  Alexander Benlian,et al.  Perceived IT Security Risks of Cloud Computing: Conceptualization and Scale Development , 2012, ICIS.

[60]  Joonas Rokka,et al.  Preference for green packaging in consumer product choices – Do consumers care? , 2008 .

[61]  Frank Teuteberg,et al.  Exploring Trust In Cloud Computing: A Multi-Method Approach , 2013, ECIS.

[62]  Jonas Repschläger,et al.  Cloud Requirement Framework: Requirements and Evaluation Criteria to Adopt Cloud solutions , 2012, ECIS.

[63]  Marco Vriens,et al.  Solving marketing problems with conjoint analysis , 1994 .

[64]  Sirkka L. Jarvenpaa,et al.  Consumer trust in an Internet store , 2000, Inf. Technol. Manag..

[65]  Naresh K. Malhotra,et al.  Internet Users' Information Privacy Concerns (IUIPC): The Construct, the Scale, and a Causal Model , 2004, Inf. Syst. Res..

[66]  Meina Song,et al.  Notice of Retraction A Governance Model for Cloud Computing , 2010, MASS 2010.

[67]  Anol Bhattacherjee,et al.  Why end-users move to the cloud: a migration-theoretic analysis , 2014, Eur. J. Inf. Syst..

[68]  D. Kahneman Reference points, anchors, norms, and mixed feelings. , 1992 .

[69]  Ananth Chiravuri,et al.  An Empirical Investigation of Cloud Computing for Personal Use , 2010 .

[70]  Ayman I. Kayssi,et al.  Privacy as a Service: Privacy-Aware Data Storage and Processing in Cloud Computing Architectures , 2009, 2009 Eighth IEEE International Conference on Dependable, Autonomic and Secure Computing.

[71]  Kenneth E. Train,et al.  Discrete Choice Methods with Simulation , 2016 .

[72]  D. Gefen,et al.  E-commerce: the role of familiarity and trust , 2000 .

[73]  Jian Mou,et al.  Trust, Risk Barriers and Health Beliefs in Consumer Acceptance of Online Health Services , 2014, ICIS.

[74]  R. Scheines,et al.  Organizational Behavior and Human Decision Processes , 1977 .

[75]  Vijayan Sugumaran,et al.  AIS Electronic Library (AISeL) , 2022 .

[76]  Katherine Gallagher,et al.  A Tale of Two Studies: Replicating ‘Advertising Effectiveness and Content Evaluation in Print and on the Web’ , 2001, Journal of Advertising Research.

[77]  William Samuelson,et al.  Status quo bias in decision making , 1988 .

[78]  Girish N. Punj,et al.  Cluster Analysis in Marketing Research: Review and Suggestions for Application , 1983 .

[79]  John M. Rose,et al.  Applied Choice Analysis: List of tables , 2005 .

[80]  R. Peterson On the Use of College Students in Social Science Research: Insights from a Second‐Order Meta‐analysis , 2001 .

[81]  Sonja Gensler Ermittlung von Präferenzen für Produkteigenschaften mit Hilfe der Choice-Based Conjoint Analyse (Teil II) , 2006 .

[82]  J. Baron,et al.  Investigating the effect of stimulus range on attribute weight. , 1991, Journal of experimental psychology. Human perception and performance.

[83]  Yuan Li,et al.  A Study on User Acceptance of Cloud Computing: A Multi-Theoretical Perspective , 2012, AMCIS.

[84]  Izak Benbasat,et al.  When is IT Unavailability a Strategic Risk?: A Study in the Context of Cloud Computing , 2014, ICIS.

[85]  Arun Anandasivam,et al.  Cloud Services from a Consumer Perspective , 2010, AMCIS.

[86]  Manuel Trenz,et al.  Understanding the Viability of Cloud Services: a Consumer Perspective , 2014, ECIS.

[87]  Frank Teuteberg,et al.  Understanding the Benefit Structure of Cloud Storage as a Means of Personal Archiving - a Choice-Based Conjoint Analysis , 2014, ECIS.

[88]  Alexander Benlian,et al.  Perceived IT Security Risks in Cloud Adoption: the Role of Perceptual Incongruence between Users and Providers , 2014, ECIS.

[89]  Randy H. Katz,et al.  A view of cloud computing , 2010, CACM.

[90]  Donald M. Waldman,et al.  (www.interscience.wiley.com) DOI: 10.1002/jae.984 LEARNING AND FATIGUE DURING CHOICE EXPERIMENTS: A COMPARISON OF ONLINE AND MAIL SURVEY MODES , 2022 .

[91]  Detmar W. Straub,et al.  Structural Equation Modeling and Regression: Guidelines for Research Practice , 2000, Commun. Assoc. Inf. Syst..

[92]  Frank Teuteberg,et al.  Towards an Understanding of the Formation and Retention of Trust in Cloud Computing: A Research Agenda, Proposed Research Methods and Preliminary Results , 2014, TrustBus.

[93]  E GreenPaul,et al.  Thirty Years of Conjoint Analysis , 2001 .

[94]  R Core Team,et al.  R: A language and environment for statistical computing. , 2014 .