Gains and Losses in Functionality – An Experimental Investigation of the Effect of Software Updates on Users’ Continuance Intentions

Although software updates are ubiquitous in professional and private IS usage, their impact on user behaviors has received little attention in post-adoption research. Based on expectation-confirmation-theory and the IS continuance model, we investigate the effects of gaining and loosing features through updates on expert and novice users’ continuance intentions (CI). In a vignette based experiment, we find that updates which add features to software after its release increase novices’ CI above and beyond a level generated by a monolithic software package that contains the entire feature set from the beginning. With diminished CI, experts show a contrary reaction to the same update. Losing features through an update, on the other hand, severely diminishes CI for experts and novices alike. Mediation analysis reveals positive disconfirmation of previous expectations as psychological mechanism behind novices’ counter-intuitive and somewhat non-rational responses to gaining features through an update. Implications for research and practice are derived