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Journal of Hospitality and Tourism Technology

What determines tourist adoption of smartphone apps? An analysis based on the UTAUT-2 framework
Anil Gupta, Nikita Dogra, Babu George,
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Anil Gupta, Nikita Dogra, Babu George, "What determines tourist adoption of smartphone apps? An analysis based on the
UTAUT-2 framework", Journal of Hospitality and Tourism Technology, https://doi.org/10.1108/JHTT-02-2017-0013
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What determines tourist adoption of smartphone apps? An analysis based on the UTAUT-
2 framework
Abstract
Purpose – This study aims to identify factors affecting tourists’ intention of using travel apps
installed on their smartphones.
Design/methodology/approach – A survey instrument was developed based on the available
scales in the published literature. A total of 389 participants responded to the survey, out of
which 343 valid responses were obtained for statistical analysis.
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Findings –Significant predictors of smartphone travel app usage intention included performance
expectancy, social influence, price saving, perceived risk, perceived trust, and prior usage habits.
Usage behavior was largely mediated by usage intention, except in the case of habits. Contrary to
the expectation, factors like hedonistic motivation, facilitating conditions, or effort expectancy
did not impact usage intention or behavior.
Practical implications –The study gives app developers vital cues on tourist expectations from
the apps. Oftentimes, developers tend to focus entirely on the material utility of their apps,
neglecting every other factor influencing use. One particular implication is that, despite tourism
being a hedonistic activity, travel app usage behavior is not one.
Originality/value –This is one of the few studies to examine adoption of smartphone travel apps
in emerging economy context using Extended Unified Theory of Acceptance and Use of
Technology framework with additional constructs.

1. Introduction

Smartphones usage, especially ‘mobile applications’ has not only affected everyday life but
has a significant influence on the tourism industry and travel behaviour of people. Modern
traveler enhances their travel experience using smart technology (Karanasios et al., 2012) and to
enhance it, a wide variety of smartphone apps are available across spectrum of travel services
including transport planning (Uber, Skyscanner), travel planning (TripIT, Tripadvisor),
accommodation planning (Booking.com, Expedia), tour guide (DETOUR, NY Travel guides)
and directional services (Google maps). Tourism marketers are positioning their strategy by
developing smartphone travel apps around their value proposition (Samy, 2012) as it provides
interactive consumer experience (Yu, 2013) and also eliminate the spatial and temporal
restrictions.
With growing investment in travel related apps, user adoption and acceptance have become
imperative to ensure successful implementation. Despite the effectiveness and competencies of
travel apps, the adoption of these among the consumers is still in the nascent stage (Lu et al.,
2015). Recent studies have reported that 30% of people use mobile apps to find hotel deals, 29%
use mobile apps to find the flight deals, 8.1% use mobile apps to buy tickets and only 15% users
specifically download travel apps to plan a trip ahead (“How mobile app benefits”, 2015). It is
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thus pertinent to study the factors which affect the adoption and usage of travel apps among the
consumers. Better understanding of such factors will go a long way to increasing the adoption of
smartphone travel apps.
Extant research examines the impact of smartphone apps on tourist experiences (Kramer et
al., 2007; Wang et. al, 2012), use of smartphones in travel domain (Wang et al., 2016),
smartphone adoption during leisure based tourism (O’Regan & Chang, 2015), adoption of
smartphone apps while travelling to rural sites (Lu et al., 2015) However, there is still a paucity
of published literature on understanding the travelers’ intentions to adopt smartphone apps for
making travel purchase. In this context, the present study aims to identify factors influencing
travelers’ adoption and usage of smartphone apps for travel purchase. To understand this, we use
the extended Unified Theory of Acceptance and Use of Technology (UTAUT2) and integrate
perceived risk and perceived trust to the base model.
The significance of this study is twofold. First, it contributes to the mobile apps adoption
literature specifically in the context of travel and tourism industry. Second, it identifies the
determinants of mobile apps adoption for making travel purchase which can be used by
practitioners to increase the adoption. The results of this study contribute to the empirical
evidence by identifying the role of perceived risk and perceived trust along with determinants of
UTAUT2 in travel mobile apps adoption.
2. Literature Review and Hypotheses
The extended Unified theory of acceptance and use of technology (UTAUT-2) proposed by
Venkatesh et al. (2012), an extension of UTAUT (Venkatesh et al., 2003), includes hedonic
motivation, price value, and habit to the original four constructs: performance expectancy, effort
expectancy, social influence, and facilitating conditions. The UTAUT-2 includes many recent
developments in consumer technology adoption literature (Satama, 2014) and has a better
predictive validity in technology consumption context (Venkatesh et al., 2012).
Existing research has applied the UTAUT-2 model in several contexts including adoption
of a location-based social media service for travel planning (Chong and Ngai, 2013), online
purchasing intentions for low cost carriers (Escobar-Rodríguez and Carvajal-Trujillo, 2014),
consumer adoption of access based consumption services (Satama, 2014), mobile banking
(Baptista and Oliveira, 2015), student adoption of lecture capture systems (Nair et al., 2015) and
mobile payments (Oliveira et al., 2016). In the following sections, we review the related
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literature, identify gaps, and propose hypotheses.

2.1Performance Expectancy
Extant research confirms that consumers are likely to use a technology which is more
useful and shall bring favourable outcomes as expected by the users (Compeau and Higgins,
1995). Further, existing studies confirm significant positive relationship between performance
expectancy and behavioral intentions in context of online travel purcahsing (Escobar-Rodriguez
and Carvajal-Trujillo, 2014; Oliveira et al., 2016; Slade et al., 2015;). mobile-based
communication technologies (Engotoit et al., 2016), mobile wallets (Madan and Yadav, 2016),
telebanking services (Alalwan et al., 2016) and m-banking (Tan and Lau, 2016). Thus,
H1: Performance expectancy positively influences tourist’s behavioral intention to adopt
smartphone apps for making travel purchase.
2.2 Effort Expectancy
Consumers prefer to use a technology which is easy to understand and can provide
maximum benefits (Davis et al., 1989). Effort expectancy has proved to be a strong predictor of
behavioral intentions in several contexts, including internet banking (Martins et al., 2014), m-
banking (Bhatiasevi, 2015; Koksal, 2016; Tan and Lau, 2016), mobile applications (Hew et al.,
2015) and m-payments (Teo et al., 2015). Thus,
H2: Effort expectancy positively influences tourist’s behavioral intention to adopt smartphone
apps for making travel purchase.
2.3 Social Influence
According to Ajzen (1991), if the person thinks that the given behavior shall be accepted
by his/her peer group then the person is more likely to form intentions to engage in a given
behavior. Existing research confirms that social influence is a strong predictor of behavioral
intentions (Chong and Ngai, 2013) across various contexts including mobile payments (Hongxia
et al., 2011; Slade et al., 2015; Tan et al., 2014; Yang et al., 2012); m-commerce (Chong, 2013),
social commerce (Akman and Mishra, 2017), m-banking (Bhatiasevi, 2015; Tan and Lau, 2016),
mobile app usage intentions (Hew et al., 2015). Thus, we hypothesize
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H3: Social influence positively influences tourist’s behavioral intention to adopt smartphone
apps for making travel purchase.
2.4 Facilitating Conditions
In our study, facilitating conditions reflect the effect of necessary resources (internet
connectivity, memory in the smartphone to download an app) and required knowledge to engage
in travel purchase through smartphone apps. Extant research confirms significant relationship
between facilitating condition and behavioral intentions across various contexts including 3G
mobile services (Wu et al., 2008); Internet banking (Foon and Fah, 2011); m-learning (Jawad
and Hassan, 2015; Kang et al., 2015) and mobile wallets (Madan and Yadav, 2016). According
to Venkatesh et al (2012), both behavioral intentions and actual usage were significantly
influenced by facilitating conditions.
H4a. Facilitating Conditions positively influences tourist’s behavioral intention to adopt
smartphone apps for making travel purchase.
H4b. Facilitating Conditions positively influences tourist’s use behavior of smartphone apps for
making travel purchase.
2.5 Hedonic Motivation
Based on the literature in the consumer context (Brown and Venkatesh, 2005) and
Information System (IS) research (Van der Heijden, 2004) hedonic motivation (an intrinsic
motivation) has been considered as an important predictor of technology acceptance and use
(Venkatesh et al., 2012). While applying UTAUT-2 framework, hedonic motivation has found to
be strong predictor of adoption of mobile banking (Alalwan et al., 2017; Baptista and Oliveira,
2015), social networking sites (Herrero and San Martín, 2017), e-learning systems (El-Masri and
Tarhini, 2017), NFC mobile payments (Morosan and DeFranco, 2016; Slade et al., 2015), online
purchase (Escobar-Rodríguez & Carvajal-Trujillo, 2014) and mobile apps (Hew et al., 2015).
Thus we hypothesize
H5: Hedonic motivation positively influences tourist’s intention to adopt smartphone apps for
making travel purchase.
2.6 Price Saving Orientation
Various mobile apps across sectors including hospitality and tourism have introduced
innovative pricing strategies and provide value by offering cash back offers and price savings.
Venkatesh et al. (2012) while developing UTAUT-2 framework argued that price value is a
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significant predictor of behaviour intention to use a technology as consumer look for higher
perceived benefits in comparison to the monetary sacrifice. Consumers while shopping online
look for significant cost savings (Jensen, 2012) and therefore this price saving orientation has
been observed as a significant predictor of purchase intention (Lien et al., 2015) especially in
context of airline e-commerce websites (Escobar-Rodríguez & Carvajal-Trujillo, 2013) and also
online booking of low cost carriers (Escobar-Rodríguez and Carvajal-Trujillo, 2014). Thus, we
hypothesize

H6: Price saving orientation positively influences tourist’s behavioral intention to adopt
smartphone apps for making travel purchase.
2.7 Habit

Extant research on sharing travel experience on social networking sites (Herrero and San
Martín, 2017) observed habit as a significant predictor of behavioral intention. Existing studies
have also highlighted the significant effects of consumer habit on behavioral intentions and
actual usage (Chen et al., 2015; Escobar-Rodriguez and Carvajal-Trujillo, 2014; Hsiaoa et al.,
2016; Ohtonen and Karjaluoto, 2016). Based on these findings, we hypothesize
H7a. Habit positively influences tourist’s behavioural intention to adopt smartphone travel apps.
H7b. Habit positively influences the tourist’s usage behaviour of smartphone travel apps.
2.8 Perceived Risk
Perceived risk can be defined as the customer’s perception of uncertainty and negative
consequences or outcomes associated with the specific behavior (Bauer, 1960; Mandrik and Bao,
2005).Researchers suggested that perceived risk is more common in online shopping because of
the spatial separation between sellers and consumers(Al-Gahtani, 2011).). Extant research in e-
commerce (Aghekyan-Simonian et al., 2012; Chang and Wu, 2012; Wu and Ke, 2016); m-
payments (Slade et al., 2015); m-banking (Mortimer et al., 2015; Tan and Lau, 2016; Yuan et
al., 2016) and online travel purchase (Amaro and Duarte, 2015) establish the inverse relationship
between consumer’s perceived risk and behavioral intentions. Based on this we hypothesize
H8: Perceived risk negatively influences tourist’s behavioral intention to adopt smartphone apps
for making travel purchase.
2.9 Perceived Trust
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Trust is the degree to which a consumer believes in the trustee and feels secured about
making any transaction with that particular service provider (Komiak and Benbasat, 2004). Trust
is a significant predictor of adoption of e-shopping (Grabosky, 2001; Ha and Stoel, 2009), social
networking sites (Sledgianowski and Kulviwat, 2009), mobile shopping and mobile payments
(Chong, 2013; Wang and Lin, 2016) and influences online purchase intentions (Ponte et al.,
2015; Wen, 2009; Xie et al., 2015) and repeat purchase (Chiu et al., 2010).or Based on this we
hypothesize

H9: Trust positively influences tourist’s behavioral intention to adopt smartphone apps for
making travel purchase/bookings.
2.10 Behavioral Intentions
According to Fishbein and Ajzen (1975), the behavioral intention is considered as the
best predictor of behavior which is also well established in consumer research literature (Im et al.
2011; Martins et al 2014). Extant research in the area of m-banking, internet banking, online
travel purchase behavior and use of mobile services (Arenas-Gaitán et al., 2015; Baptista and
Oliveira, 2015; Escobar-Rodríguez and Carvajal-Trujillo, 2014; Mafe et al., 2010) establish the
relationship between behavioral intentions and actual use. Thus, we hypothesize
H10. Behavioural intention to adopt smartphone apps for travel purchase/booking positively
influences tourists’ usage behaviour of these apps.
3. Methodology
3.1 Measurement

The survey instrument was developed using existing scales from (Baptista and Oliveira,
2015; Escobar-Rodríguez and Carvajal-Trujillo, 2014; San Martín and Herrero, 2012), items for
perceived risk were adopted from (Kesharwani and Bisht, 2012; Mcleod et al., 2009; Slade et al.,
2015) and for perceived trust the items were based on the studies of (Escobar-Rodríguez and
Carvajal-Trujillo, 2014; Harris et al., 2016; Zhou, 2012). All items were measured on a five
point Likert scale, ranging from 1 (“strongly disagree”) to 5 (“strongly agree”). Using the
recommendation of Davis et al. (1989) and Ajzen and Fishbein (1980) we measured how often
the actual behaviour is performed. by asking “how often do they use mobile apps for travel
bookings” which was measured on 5 point Likert scale with 1 (“never”) and 5 (“always”).

3.2 Sample and Data collection


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With over 300 million smartphone users, 450 million Internet users and six billion mobile
apps downloads, India is the second largest market for smartphones in the world. For travel
companies, like Cleartrip, Makemytrip, Yatra, Goibibo with more than 10 million downloads,
India is one of the most lucrative market. The target population of the study, thus selected, was
travelers in India. An email invitation with link to the survey was sent to 2687 Indian domestic
tourists served by various travel agencies during April – June 2016, out of which 389 responded
to the survey. Of these only the respondents who had used mobile apps to make travel related
bookings in the past 6 months were retained in the analysis. A total of 343 valid responses were
obtained, providing a response rate of 12.76 %. Table 1 indicates the respondent’s profile

<Insert Table 1>

4. Data Analysis and Results

To test the research hypothesis we use Partial Least Squares (PLS) using SmartPLS software,
Version 3.0 (Ringle et al., 2015). PLS is one of the most popular and powerful statistical
technique because of its ability to calculate the path estimates and the model parameters under
conditions of non-normality (Hulland, 1999) and is also suitable for small-medium samples.
4.1 Measurement Model
The first stage examined the convergent and discriminant validity as well as reliability of all the
constructs. Table 2 shows factor loadings of each item indicating that all were statistically
significant and were above the minimum acceptable value of 0.70 (Fornell and Larcker, 1981).
Similarly the AVE scores of all the constructs are indicated in Table 2 which shows that all the
values are above the desirable threshold of 0.50 (Fornell and Larcker, 1981).
<Insert Table 2>

The reliability of the indicators was also verified by using composite reliability coefficient
(Werts et al, 1974) and Cronbach alpha (Nunnally and Bernstein, 1994). Since the composite
reliabilities and cronbach alpha coefficients, as presented in Table 2, are above the minimum
acceptable levels of 0.70 (Churchill, 1979; Gefen et al., 2000), it is recommended for
confirmatory research.
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The discriminant validity is established as the square root of AVE is greater than the correlation
between the constructs (Fornell and Larcker, 1981) as presented in Table 3

<Insert Table 3>

4.2 Structural Model

The structural model and the hypothesized relationships were tested by using PLS analysis. The
statistical significance and the path coefficients were examined by performing bootstrapping
procedure with 5000 iterations and the results of the same are summarized in Figure 1 and Table
4.

<Insert Figure 1>


<Insert Table 4>

Habit (β =0.137, p<0.05) Performance Expectancy (β =0.183, p<0.05), Price Saving Orientations
(β =0.181, p<0.05), Social Influence (β =0.170, p<0.05), Perceived Risk (β = -0.133, p<0.05) and
Perceived Trust (β =0.142, p<0.05) were found to be statistically significant in explaining
behavioral intentions. Further we observed that behavioral intention (β =0.272, p<0.05) is
significant predictor of use behaviour explaining 42.6% of its variance. Surprisingly, effort
expectancy (β =0.047, p>0.05), facilitating conditions (β =0.041, p>0.05), and hedonic
motivations (β =0.074, p>0.05) were statistically insignificant and had no influence on
behavioral intentions to make travel related purchase through mobile apps.
Habit was the only significant direct antecedent of actual usage behavior in addition to
consumer’s behavioral intentions. Overall, the factors under study together explained a variation
of 58.1% in behavioral intention and 42.6% in use behavior.

5. Discussion and Conclusion


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The main objective of this study was to extend the UTAUT-2 framework by integrating
perceived risk and perceived trust constructs in order to investigate the factors that affect the
consumers’ intention to use smartphone apps for travel bookings. Our findings support
theoretically and empirically the ability of UTAUT-2 to predict the adoption of smartphone apps
in travel context. The findings indicate consumers’ adoption of smartphone apps was
significantly affected by price saving orientation, performance expectancy, social influence,
perceived risk, perceived trust and habit. The findings of this study are consistent with those of
previous research including the work of (Antunes and Amaro, 2016; Arenas-Gaitán et al., 2016;
Baptista and Oliveira, 2015; Escobar-Rodríguez and Carvajal-Trujillo, 2014; Hahn et al., 2014;
Morosan and DeFranco 2016; Oliveira et al., 2014). Among these constructs, this study found
that performance expectancy is the strongest determinant followed by price-saving orientation
and social influence. Further, the findings of this study indicate that there is no significant
relationship of effort expectancy, facilitating conditions, and hedonic motivation on behavioural
intentions. Overall, the proposed model achieves acceptable fit and explained 58.1% variation in
behavioral intention and 42.6% in use behavior.

Theoretical Implications

The findings of this study contribute to travel technology adoption literature in the
emerging market contexts. While technology adoption has been studied somewhat extensively,
specific nuances associated with the adoption of smart phone apps have not received sufficient
scholarly attention. It also extends the theorized technology adoption model propounded by
Venkatesh et al. (2012) by integrating new constructs i.e. perceived risk and perceived trust,
which are crucial to examine the case of online transactions. Finally, this study contributes to the
scarce literature on understanding the adoption and use behaviour of smartphone app in context
of travel bookings.

Practical Implications

In emerging market context, our study confirms that performance expectancy, price
saving orientation and social influence are top three significant predictors of intention to
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purchase through mobile apps. Smartphone app developers should take these as important cues.
Online marketers should focus on offering various cost saving deals (like “earn by referring
others” or offering extra discounts on using mobile apps for making travel bookings) to add more
perceived value and benefits in terms of saving money. The app developers should lay emphasis
on efficient content development and management. The travel apps providing useful, reliable and
accurate information will lead to enhanced perceived utility among the consumers and will
ultimately increase the adoption of mobile apps among the tourists. Considering the important
role of social influence, it is recommended that the marketers and developers should focus on
relationship marketing approach enabling to connect with the customers. They must strive to
have a good rapport with existing clients in order to have favorable opinion which further would
help in spreading positive word of mouth. For example, app developers should make a provision
of collecting regular feedback from the customers to improve the app performance. The service
providers should concentrate on reducing the overall risk (perceived like financial, product
performance, time/convenience etc) by ensuring good services, secured transactions and
maximum value.

Limitations and Future Research


Considering the limitations of the study, the following suggestions are proposed for
future research; firstly, the proposed model predicted just less than half of all the variance in
purchase intention or behavior. Thus, it is suggested that future studies can focus on examining
the effects of other variables on consumer’s intentions to adopt smartphone apps for making
travel purchase/bookings. The other variables would include self-efficacy, personal
innovativeness, anxiety to use new technology, perceived credibility, privacy concerns, attitude
and perceived security. Since the effect of moderating variables included in UTAUT2 was not
tested, therefore, future studies could also examine the moderating effects of age, gender, and
experience on the variables influencing behavioral intentions. The studies can also analyze
factors behind the resistance to use mobile apps for making travel related bookings. Lastly, the
sample to undertake this research was drawn from Indian domestic tourists, therefore the
findings of the study cannot be generalized to users beyond India. It is possible that users from
other countries and regions may have different perception and outlook towards mobile app
adoption. Thus, future studies can explore the possible variation in consumer needs across
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different groups and cultures.

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Table 1
Gender and Age characteristics of the respondents
Characteristics Frequency %
Gender Male 198 57.72%
Female 145 42.27%
Total 343 100%
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Age Below 20 50 18.9%


20-30 133 38.7%
30-40 89 25.9%
40-50 71 20.69%
Total 343 100%
Table 2
Item Loadings, Composite Reliability, AVE, Cronbach Alpha Coefficients
Construct Scale Loadings Composite AVE Cronbach
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Item Reliability Alpha


PE1 0.732
PE2 0.746
PE3 0.718
Performance Expectancy (PE) PE4 0.603 0.798 0.498 0.666
EE1 0.635
EE2 0.797
EE3 0.812
Effort Expectancy (EE) EE4 0.717 0.836 0.563 0.757
SI1 0.859
SI2 0.932
Social Influence (SI) SI3 0.854 0.917 0.782 0.861
FC1 0.829
Facilitating Conditions (FC) FC2 0.821 0.844 0.732 0.631

HM1 0.853
HM2 0.864
Hedonic Motivation (HM) HM3 0.824 0.886 0.721 0.807
PO1 0.789
PO2 0.847
Price Saving Orientation (PO) PO3 0.858 0.875 0.701 0.789
HT1 0.883
HT2 0.894
Habit (HT) HT3 0.768 0.888 0.726 0.812
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PT1 0.828
PT2 0.861
PT3 0.625
Perceived Trust (PT) PT4 0.69 0.847 0.585 0.769
PR1 0.723
PR2 0.765
PR3 0.841
Perceived Risk (PR) PR4 0.73 0.875 0.638 0.815
BI1 0.799
BI2 0.877
Behavioural Intentions (BI) BI3 0.831 0.875 0.700 0.786
Use Behaviour (AU) AU1 1.000 1.000 1.000 1.000
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Table 3
Discriminant validity of constructs
AU BI EE FC HM HT PE PO PR SI PT
AU 1.000
BI 0.405 0.837
EE 0.125 0.42 0.75
FC 0.158 0.301 0.573 0.733
HM 0.242 0.416 0.455 0.322 0.849
HT 0.405 0.455 0.247 0.163 0.425 0.852
PE 0.295 0.465 0.447 0.39 0.266 0.326 0.706
PO 0.161 0.449 0.38 0.315 0.394 0.318 0.294 0.837
PR -0.259 -0.223 -0.049 -0.044 -0.131 -0.12 -0.182 -0.034 0.799
SI 0.212 0.443 0.45 0.175 0.357 0.438 0.36 0.279 -0.005 0.884
PT 0.335 0.452 0.379 0.215 0.388 0.4 0.317 0.421 -0.166 0.258 0.765
Table 4
Summary of Test results for the structural model
Hypothesis Path Standardized Path P-Value Supported? Construct R-squared
Coefficient
H1 PE-BI 0.183 0.019 Yes Behavioural 0.581
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Intention
H2 EE-BI 0.047 0.615 No
H3 SI-BI 0.170 0.030 Yes
H4a FC-BI 0.041 0.657 No
H5 HM-BI 0.074 0.331 No
H6 PO-BI 0.181 0.009 Yes
H7a HT-BI 0.137 0.036 Yes
H9 PR-BI -0.133 0.024 Yes
H10 PT-BI 0.142 0.019 Yes
H4b FC-AU 0.035 0.721 No Use 0.426
Behaviour
H7b HT-AU 0.278 0.000 Yes
H8 BI-AU 0.272 0.001 Yes
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