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Factors Influencing Internet
Shopping Value and Customer
Repurchase Intention
SHOP INFO

Presenter: Jessie Liu
Instructor: Dr. Pi-Ying Hsu
Date: February 24, 2014
1
Citation
Kim, C., Galliers, R. D., Shin, N., Ryoo, J. H., &
Kim, J. (2012). Factors influencing Internet
shopping value and customer repurchase
intention. Electronic Commerce Research and
Applications, 11(4), 374-387.

2
Contents
Introduction

Literature Review
Methodology

Results & Conclusion
Reflection
3
INTRODUCTION
Background

Gap

Purpose of the Study

4
Background
Internet shopping businesses depends on:
innovation

1

2
3
4

the provision of interactive, cost-efficient,
and convenient services
enticing new customers

existing customer bases
(Overby & Lee, 2006, Pavlou et al., 2007)

5
Gap
Previous researchers failed to suggest a
comprehensive model for Internet shopping
business success by linking customer
satisfaction and retention using existing
information systems and marketing
literature.
(Hellier et al., 2003 )
6
Purpose of the Study
To examine the effect of various Internet
shopping site qualities on the utilitarian
and hedonic values of Internet shopping

7
LITERATURE REVIEW
Research Model
Research Questions
Hypotheses

8
Research Model
System Quality
Security
Accessibility
Information Quality

H4a
H4b
H5a
H5b

Utilitarian
Shopping
Value

H1b
H1a

H6a

Variety

H6b

Currency

H7a
H7b

Customer
Satisfaction

Service Quality
Quickness
Receptiveness

H8a
H8b

Hedonic
Shopping
Value

H3

Intent to
Repurchase

H2a
H2b

H9a
H9b
9
Research Questions
Do system, information, and service qualities
affect hedonic and utilitarian shopping
values?
Do hedonic and utilitarian shopping values
affect customer satisfaction and repurchase
intention?
Does customer satisfaction affect repurchase
intention?

10
Internet shopping value
Utilitarian
shopping value

Hedonic
shopping value

the degree to
which consumers
feel their shopping
goals have been
accomplished

the fun and
excitement of the
shopping
experience

(Bridges & Florsheim 2008; Overby &
Lee 2006; To et al., 2007) 11
Internet shopping value
Internet shopping business success requires the
provision of both values because they are highly
related to the likelihood of customer
satisfaction and purchase.
(Kuan et al., 2008; Shang et al., 2005; Sorce et
al., 2005; Wolfinbarger & Gilly, 2001)

12
Internet shopping value
H1a:
H1b:
H2a:
H2b:

H3:

Utilitarian shopping value is positively (+)
associated with customer satisfaction.
Utilitarian shopping value is positively (+)
associated with customer repurchase intention.
Hedonic shopping value is positively (+)
associated with customer satisfaction.
Hedonic shopping value is positively (+)
associated with customer repurchase intention.

Customer satisfaction is positively (+) associated
with customer repurchase intention.

13
System Quality
Hedonic and utilitarian shopping values are likely to
increase when there is prompt access to Internet
shopping sites and increased security of personal
information.
(Bridges & Florsheim 2008; Lu & Su,
2009; Overby & Lee, 2006)

System quality must support the consumer’s
purchasing activity by providing security and
accessibility (access convenience, ease of use and
reliability), in addition to speed and a variety of other
convenience features.
(Chan & Teo, 2007; Doll et al.,
2004; Schaupp et al., 2009)
14
System Quality
H4a: Security is positively (+) associated
with utilitarian shopping value.
H4b: Security is positively (+) associated
with hedonic shopping value.
H5a: Accessibility is positively (+) associated
with utilitarian shopping value.
H5b: Accessibility is positively (+) associated
with hedonic shopping value.

15
Information Quality
Information variety

the abundance of
information that satisfies
different types of
consumers

Information currency

the degree to which
consumers perceive
information as novel and
timely
(Chen & Cheng, 2009; Kim & Lee 2005)
16
Information Quality
H6a: Information variety is positively (+)
associated with utilitarian shopping value.
H6b: Information variety is positively (+)
associated with hedonic shopping value.
H7a: Information currency is positively (+)
associated with utilitarian shopping value.
H7b: Information currency is positively (+)
associated with hedonic shopping value.

17
Service Quality
Previous research has shown that prompt product
delivery and ease of product return significantly
increase a consumer’s positive experiences,
including greater enjoyment.
(Comegys et al., 2009; Hui & Wan 2007;
Zeithaml et al., 2002)

The shopping value perceived by customers is
critically dependent on how quickly and accurately
products are delivered after the order is placed.
(Ha & Stoel, 2009)
18
Service Quality
H8a: Service quickness is positively (+)
associated with utilitarian shopping value.
H8b: Service quickness is positively (+)
associated with hedonic shopping value.
H9a: Service receptiveness is positively (+)
associated with utilitarian shopping value.
H9b: Service receptiveness is positively (+)
associated with hedonic shopping value.

19
Demographic Attributes
Student

Workforce

There are differences in income level, age, purchasing
power, and computer literacy.

20
Demographic Attributes
H10:
H11:

H12:
H13:

The impact of system quality on hedonic/utilitarian
shopping values differs across user income levels.
The impact of information quality on
hedonic/utilitarian shopping values differs across
user income levels.
The impact of service quality on hedonic/utilitarian
shopping values differs across user income levels.
The impact of hedonic/utilitarian shopping values
on customer satisfaction and repurchase intention
differs across user income levels.

21
Demographic Attributes
H14:
H15:

H16:

H17:

The impact of system quality on hedonic/utilitarian
shopping values differs between genders.
The impact of information quality on
hedonic/utilitarian shopping values differs between
genders.
The impact of service quality on hedonic/utilitarian
shopping values differs between genders.
The impact of hedonic/utilitarian shopping values on
customer satisfaction and repurchase intention
differs between genders.

22
METHODOLOGY
Instrument
Data Collection and Analysis

23
Instrument
Question

strongly
disagree

Internet shopping site
is easy to browse.

□

disagree Neither

□

□

agree

strongly
agree

□

□

45 items

24
Data Collection
Over 8 weeks

E-mail and
direct delivery

151 women
142 men

General public
in Korea

Online and
offline surveys

293
questionnaires

25
Data Analysis
to evaluate the
reliability of variables

Cronbach’s alpha
Factor analysis and
internal consistency
to assess the
validity of the
constructs

to test the
research
hypotheses

Structural equation
model (SEM)
26
RESULTS &
CONCLUSION
Demographic Analysis

Reliability and Validity
Hypotheses

27
115 workforce

Demographic Analysis

28
> 0.7

Reliability and Validity

29
Reliability and Validity

30
Research Hypotheses
System Quality
Security
Accessibility

.107*
.170*

Information Quality

Utilitarian
Shopping
Value

.095*

Variety

.286*

Service Quality
Quickness
Receptiveness

.202*

.325*

Customer
Satisfaction

.294*

Currency

.149*

Hedonic
Shopping
Value

.622*

Intent to
Repurchase

.166*
.148*

.405*
31
Research Hypotheses

32
REFLECTION

33
Reflection
Didn’t explain why they excluded other factors.
usability
availability
reliability
the response time

security
accessibility

Didn’t explain how they chose the sample.
From general public

Sampling method?
Condition?

34
Thank you
for your
attention!
35

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Factors influencing internet shopping value and customer repurchase

  • 1. Factors Influencing Internet Shopping Value and Customer Repurchase Intention SHOP INFO Presenter: Jessie Liu Instructor: Dr. Pi-Ying Hsu Date: February 24, 2014 1
  • 2. Citation Kim, C., Galliers, R. D., Shin, N., Ryoo, J. H., & Kim, J. (2012). Factors influencing Internet shopping value and customer repurchase intention. Electronic Commerce Research and Applications, 11(4), 374-387. 2
  • 5. Background Internet shopping businesses depends on: innovation 1 2 3 4 the provision of interactive, cost-efficient, and convenient services enticing new customers existing customer bases (Overby & Lee, 2006, Pavlou et al., 2007) 5
  • 6. Gap Previous researchers failed to suggest a comprehensive model for Internet shopping business success by linking customer satisfaction and retention using existing information systems and marketing literature. (Hellier et al., 2003 ) 6
  • 7. Purpose of the Study To examine the effect of various Internet shopping site qualities on the utilitarian and hedonic values of Internet shopping 7
  • 9. Research Model System Quality Security Accessibility Information Quality H4a H4b H5a H5b Utilitarian Shopping Value H1b H1a H6a Variety H6b Currency H7a H7b Customer Satisfaction Service Quality Quickness Receptiveness H8a H8b Hedonic Shopping Value H3 Intent to Repurchase H2a H2b H9a H9b 9
  • 10. Research Questions Do system, information, and service qualities affect hedonic and utilitarian shopping values? Do hedonic and utilitarian shopping values affect customer satisfaction and repurchase intention? Does customer satisfaction affect repurchase intention? 10
  • 11. Internet shopping value Utilitarian shopping value Hedonic shopping value the degree to which consumers feel their shopping goals have been accomplished the fun and excitement of the shopping experience (Bridges & Florsheim 2008; Overby & Lee 2006; To et al., 2007) 11
  • 12. Internet shopping value Internet shopping business success requires the provision of both values because they are highly related to the likelihood of customer satisfaction and purchase. (Kuan et al., 2008; Shang et al., 2005; Sorce et al., 2005; Wolfinbarger & Gilly, 2001) 12
  • 13. Internet shopping value H1a: H1b: H2a: H2b: H3: Utilitarian shopping value is positively (+) associated with customer satisfaction. Utilitarian shopping value is positively (+) associated with customer repurchase intention. Hedonic shopping value is positively (+) associated with customer satisfaction. Hedonic shopping value is positively (+) associated with customer repurchase intention. Customer satisfaction is positively (+) associated with customer repurchase intention. 13
  • 14. System Quality Hedonic and utilitarian shopping values are likely to increase when there is prompt access to Internet shopping sites and increased security of personal information. (Bridges & Florsheim 2008; Lu & Su, 2009; Overby & Lee, 2006) System quality must support the consumer’s purchasing activity by providing security and accessibility (access convenience, ease of use and reliability), in addition to speed and a variety of other convenience features. (Chan & Teo, 2007; Doll et al., 2004; Schaupp et al., 2009) 14
  • 15. System Quality H4a: Security is positively (+) associated with utilitarian shopping value. H4b: Security is positively (+) associated with hedonic shopping value. H5a: Accessibility is positively (+) associated with utilitarian shopping value. H5b: Accessibility is positively (+) associated with hedonic shopping value. 15
  • 16. Information Quality Information variety the abundance of information that satisfies different types of consumers Information currency the degree to which consumers perceive information as novel and timely (Chen & Cheng, 2009; Kim & Lee 2005) 16
  • 17. Information Quality H6a: Information variety is positively (+) associated with utilitarian shopping value. H6b: Information variety is positively (+) associated with hedonic shopping value. H7a: Information currency is positively (+) associated with utilitarian shopping value. H7b: Information currency is positively (+) associated with hedonic shopping value. 17
  • 18. Service Quality Previous research has shown that prompt product delivery and ease of product return significantly increase a consumer’s positive experiences, including greater enjoyment. (Comegys et al., 2009; Hui & Wan 2007; Zeithaml et al., 2002) The shopping value perceived by customers is critically dependent on how quickly and accurately products are delivered after the order is placed. (Ha & Stoel, 2009) 18
  • 19. Service Quality H8a: Service quickness is positively (+) associated with utilitarian shopping value. H8b: Service quickness is positively (+) associated with hedonic shopping value. H9a: Service receptiveness is positively (+) associated with utilitarian shopping value. H9b: Service receptiveness is positively (+) associated with hedonic shopping value. 19
  • 20. Demographic Attributes Student Workforce There are differences in income level, age, purchasing power, and computer literacy. 20
  • 21. Demographic Attributes H10: H11: H12: H13: The impact of system quality on hedonic/utilitarian shopping values differs across user income levels. The impact of information quality on hedonic/utilitarian shopping values differs across user income levels. The impact of service quality on hedonic/utilitarian shopping values differs across user income levels. The impact of hedonic/utilitarian shopping values on customer satisfaction and repurchase intention differs across user income levels. 21
  • 22. Demographic Attributes H14: H15: H16: H17: The impact of system quality on hedonic/utilitarian shopping values differs between genders. The impact of information quality on hedonic/utilitarian shopping values differs between genders. The impact of service quality on hedonic/utilitarian shopping values differs between genders. The impact of hedonic/utilitarian shopping values on customer satisfaction and repurchase intention differs between genders. 22
  • 24. Instrument Question strongly disagree Internet shopping site is easy to browse. □ disagree Neither □ □ agree strongly agree □ □ 45 items 24
  • 25. Data Collection Over 8 weeks E-mail and direct delivery 151 women 142 men General public in Korea Online and offline surveys 293 questionnaires 25
  • 26. Data Analysis to evaluate the reliability of variables Cronbach’s alpha Factor analysis and internal consistency to assess the validity of the constructs to test the research hypotheses Structural equation model (SEM) 26
  • 29. > 0.7 Reliability and Validity 29
  • 31. Research Hypotheses System Quality Security Accessibility .107* .170* Information Quality Utilitarian Shopping Value .095* Variety .286* Service Quality Quickness Receptiveness .202* .325* Customer Satisfaction .294* Currency .149* Hedonic Shopping Value .622* Intent to Repurchase .166* .148* .405* 31
  • 34. Reflection Didn’t explain why they excluded other factors. usability availability reliability the response time security accessibility Didn’t explain how they chose the sample. From general public Sampling method? Condition? 34