This paper investigates the impacts of interactive contents upon the online consumer. During the development of this thesis since 1996, commercial deployments for interactive television advertisement media were virtually non-exist. We have therefore conducted this research with a self-developed computer simulation program called "Intelligent TV" for an evolving technology that we term it as "Interactive Broadcast Television". Since prior studies on this type of new interactive media are not available, we borrow insights from a wide range of literature: Strategic Management, Electronic Commerce, Internet Shopping, Consumer Behavior and Advertising Theories....[ Read more ]

This paper investigates the impacts of interactive contents upon the online consumer. During the development of this thesis since 1996, commercial deployments for interactive television advertisement media were virtually non-exist. We have therefore conducted this research with a self-developed computer simulation program called "Intelligent TV" for an evolving technology that we term it as "Interactive Broadcast Television". Since prior studies on this type of new interactive media are not available, we borrow insights from a wide range of literature: Strategic Management, Electronic Commerce, Internet Shopping, Consumer Behavior and Advertising Theories.

With a belief that interactive contents may trigger consumer action, the author employs both qualitative and quantitative research methods. For the exploratory part, focus group and in-depth interview methods are used. Insights obtained from the exploratory studies are used to develop the research instrument for a second stage research study using the survey method.

The hypothesis is confirmed with positive findings across fifteen (15) types of products and services and among different socio-economic classes. A slight gender difference is found such that male respondents apparently react more readily to interactive contents.

The theory of interactive content triggered consumer action has significant implications to practitioners as well as researchers. To the practitioners, the theory revolutionizes the development and marketing of interactive advertisement on the Internet and other interactive media. To the researchers, the theory proposes that the whole process of pre-purchase determination, purchase consummation and post-purchase interaction described by Kalakota and Whinston (1996) could be compressed in a matter of a few seconds, potentially a contribution to the literature on information systems, consumer psychology, marketing, electronic commerce and computer sciences.

This research has certain limitations. As a pioneering work in interactive advertising and consumer psychology, this is a theory building exercise. However, theoretical constructs have not been fully tested and causes and effects are assumed based on temporal sequence and intuition. Future confirmatory research should use experimental methods to validate causes and effects and live system log records to validate the theoretical model.