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Industrial Management & Data Systems

Factors affecting intentions to purchase via the internet


W.C. May So, T.N. Danny Wong, Domenic Sculli,
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W.C. May So, T.N. Danny Wong, Domenic Sculli, (2005) "Factors affecting intentions to purchase
via the internet", Industrial Management & Data Systems, Vol. 105 Issue: 9, pp.1225-1244, https://
doi.org/10.1108/02635570510633275
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Purchase via the


Factors affecting intentions to internet
purchase via the internet
W.C. May So, T.N. Danny Wong and Domenic Sculli
Department of IMSE, Faculty of Engineering, University of Hong Kong, 1225
Hong Kong, People’s Repubic of China

Abstract
Purpose – To investigate web-shopping behaviour in Hong Kong: identification of the general
attitude towards web-shopping; relationships between past web-shopping experience, attitude
towards web-shopping, adoption decisions, search behaviour and web-shopping intentions; and
influences of promotional offers and product categories on web-shopping intentions.
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Design/methodology/approach – Relevant hypotheses were constructed and a web-based


questionnaire survey was than conducted using technically educated subjects. The proposed
hypotheses were statistically tested and principal components analysis and structural equations were
used to produce a structural model.
Findings – Web-shopping intentions are directly affected by web-search behaviour and
web-shopping adoption decisions, and are indirectly affected by web-shopping attitudes, past
web-shopping experiences and past experience with the web. Web-search behaviour was a stronger
factor than adoption decision in terms of influencing web-shopping intentions. The presence of
promotional offers had a positive effect on web-shopping intentions, and web-shopping intentions
were different for different product categories.
Research limitations/implications – The sample employed was composed of technically
educated undergraduates and graduates and thus limiting generalizations to a higher levels.
Practical implications – Experienced internet users and experienced web-shoppers are more likely
to be potential future web-shoppers. Those who have a general dislike for shopping and who tend to
buy in a great haste when the purchase becomes absolutely necessary may eventually be another
group to become web-shoppers.
Originality/value – The primary value of this paper lies in extending the understanding of Hong
Kong web-shopper behaviour, and in developing an empirical model that can partly explain the
processes leading to web-shopping intentions.
Keywords Electronic commerce, Shopping, Behaviour, Consumer behaviour, Online operations,
Hong Kong
Paper type Research paper

1. Introduction
The impact of the www on the retail sector has been much greater than that of any
other commercial sector, resulting in the creation of a new form of retail format –
electronic retailing (e-tailing). Since web-shopping behaviour does not necessarily
follow traditional consumer behaviour, e-tailers face new challenges, as existing
knowledge of consumer behaviour cannot be directly applied to the new web-based
shopping domain. The research literature and research workers tend to be exuberantly Industrial Management & Data
optimistic about future growth of web-shopping activities in the industrialized Systems
Vol. 105 No. 9, 2005
Western economies, see Pew Research Center (2001), Fetto (2002), Blue Earth pp. 1225-1244
Internet (2001) and Forrester Research (2001). Similar studies in developing q Emerald Group Publishing Limited
0263-5577
economies influenced by Asian culture-influenced are scarce, an exception being DOI 10.1108/02635570510633275
IMDS Michael et al. (2002) who predicted that growth in web buying and selling activities in
105,9 the Asia-Pacific region should continue for many years.
Comments and anecdotal evidence suggest that web-shopping activities in
Hong Kong are on the increase, with a resulting rapid growth in the e-tailing business.
The investigation of web-shopping behaviour in Hong Kong has therefore become a
timely topic for research. Some models for examining web-shopper behaviour such as
1226 technology acceptance models (TAM) (Davis et al., 1989) and online pre-purchase
intentions models (Shim et al., 2001) have appeared in the literature the past few years.
A significantly high proportion of the studies have been concerned to assess the
behaviour of consumers in the West (Siu and Cheng, 2000). Since consumer behaviour
can be culture-specific, marketing strategies need to be tailor-made to fit the specific
markets (Peter and Olson, 2002), and it is questionable whether the reported
findings in the West are directly applicable in a cross-cultural context. Hong Kong is
a Chinese community steeped in Chinese culture and factors influencing web-shopping
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behaviour among Westerners may not have the same effects on local
consumers. A search the literature results in only few studies of web-shopping
behaviour that are relevant to the Hong Kong market. Such studies focus on the
characteristics of Hong Kong web-shoppers such as their age, their income level and
their occupations.
This paper reports some initial steps in modelling web-shopper behaviour in Hong
Kong. An empirical model is used to explore local web-shopper behaviour using local
subject in the survey sample. The research framework partly incorporates Rogers’
(1995) innovation-decision model and related consumer behaviour theories.
The specific objectives of the research are:
.
to investigate the general attitudes towards web-shopping in Hong Kong;
.
to study the relationships between past web experience, past web-shopping
experience, formation of attitude towards web-shopping, adoption decision, the
use of the web for product information search, and the formation of
web-shopping intentions in Hong Kong; and
.
to understand the influence of promotional offers and product categories on the
strength of web-shopping intentions among Hong Kong web-shoppers.

2. Literature review and background to e-tailing in Hong Kong


Even though many Hong Kong e-tailers have folded up over the last several years,
there are others who maintain a continuous investment policy to nurture and improve
their e-tailing business. These include the main supermarket chains in Hong Kong,
Park’N Shop and Wellcome, and a few other retailers such as the wing on department
stores and the commercial press. However, the growth of local web-selling activities in
the past few years has been relatively slow when compared with markets in the West.
Two research studies seem to be relevant to the e-tailing market in Hong Kong.
The first was conducted by Technowledge Asia Pte Ltd (1999), a relatively
comprehensive study, inquiring into the demographics of Hong Kong web-shoppers
and the e-tailing business in Hong Kong. The other study was conducted by Siu and
Cheng (2000) and focused on adopting web-shopping in Hong Kong. Both studies
suggest that web-shoppers are mostly internet-users and have relatively high
education backgrounds. This in turn suggests that as the number of internet users in
Hong Kong grows, a growth in the number of web-shoppers will also follow. According
to the reports from census and statistics department, the number of internet users in Purchase via the
Hong Kong has been increasing in recent years. Over 71 per cent of households have internet
personal computers at home, and out of that, 91 per cent had internet connection in the
year 2004; this compares with 60 and 80 per cent, respectively in the year 2001.
These figures clearly indicate that the penetration of information technology in the
household sector is growing rapidly and that the number of internet users is therefore
increasing. 1227
2.1 Research on online consumer behaviour
A number of studies have focused on identifying the factors that affect traditional
consumer behaviour and which may also influence consumer decision making and
behaviour in the context of web-shopping. These include the effect of sales promotions
(Degeratu et al., 2000), the presence of shopping plan before shopping (Dahlén and
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Lange, 2002), the role of brand names, sensory search attributes and price
(Degeratu et al., 2000), and the relationship between involvement and atmosphere,
and shoppers’ affective and cognitive reactions (Eroglu et al., 2001). Some other
findings are unique to the web environment. For example, web site layout design and
information content are important in order to arouse initial consumers interest to
further explore a site (Huang, 2000; Menon and Kahn, 2002; Iyer et al., 2005); matching
channel characteristics and retail information display for consumer shopping
orientation is also an important factor (Mathwick et al., 2002); perceived usefulness and
ease of use (O’Cass and Fenech, 2002); pervious adoption, perceived risk, internet use,
and perceived financial benefits (Eastin, 2002) would affect web-shopping adoption;
the pivotal role of trust plays (Reynolds, 2000; So and Sculli, 2002; Shih et al., 2004); and
the influence and impact of security and privacy issues on web-purchase intentions
and decisions (Salisburym et al., 2000; Liao and Cheung, 2001).

2.2 Research on attitude and behavioural intentions


Attitude in the context of human behaviour has been studied over many years
(Ajzen, 2001). The term “Attitude” is used to denote the overall degree of favourability.
By definition, “an attitude is an index of the degree to which a person likes or dislikes
an object”, see Ajzen and Fishbein (1980, p. 64). For a more comprehensive explanation
of attitude see East (1997). Attitude plays an important role in inducing different
choice behaviour and behavioural intentions (Dabholkar, 1994). The formation of
attitude involves a combination of cognitive beliefs and affective feelings about the
attitude object (Zanna and Rempel, 1988). Attitude towards a certain object is formed,
stored in memory and readily accessible which will not only ease decision-making
process, but also enhance the quality of decision making (Fazio, 2000).
There are a number of attitude theories in the literature. Fishbein (1963)
conceptualisation framework model, which is also called the expected-value theory of
attitude, is perhaps the most well-known model for relating attitude to behaviour. After
the introduction of expectancy-value theory, a number of different models and
extensions were developed based on this theory. Fishbein and Ajzen (1975),
Ajzen and Fishbein (1980) and Ajzen(1988) considered the control on behaviour
exerted by the social and physical environment and proposed the theory of reasoned
action (TRA). TRA assumes that consumer choice of behaviour is based on
conscious thinking leading to the most desirable outcome (Ajzen and Fishbein, 1980).
IMDS Later, Ajzen (1985, 1988, 1991) has proposed the theory of planned behaviour (TPB)
105,9 which takes into consideration of the effects of a person’s volitional control in
behavioural intentions. TPB was able to improve the prediction of intentions (Ajzen
and Madden, 1986; Madden et al., 1992). All these conceptual models have
demonstrated a close connection between attitude and behavioural intentions. Attitude
has been found an influencing factor in defining web-shopping behaviour. For
1228 example, Limayem et al. (2000) found that attitude towards web-shopping had the
strongest effect on the intentions to shop online. Shim et al. (2001) showed in an
empirical study that attitude towards web-shopping would positively predict intention
to use the web for product information search which would affect web-shopping
intentions. O’Cass and Fenech (2002) arrived at the conclusion that attitude towards the
web for retailing can influence action behaviour of using the web for retail purchases.
It seems that direct relationship between attitude and web-shopping intentions
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is supported. However, this relationship has been found to be mediated by a


variable – web-searching behaviour (Shim et al., 2001).

3. Hypotheses to be tested
Shim et al. (2001) postulated the existence of the information search stage during the
process of web-shopping and the result supported that intentions to use the web to
search for information was not only the strongest predictor of web-purchase intention,
but also mediated the relationships between web-purchase intentions and other
predictors such as attitude towards web-shopping, perceived behavioural control and
past web-purchase experiences. We therefore propose to test:
H1. Positive attitude towards web-shopping would increase the likelihood of
using the web to search for information.
H2. The habit of searching for information on the web would positively affect
web-shopping intentions.
The roles of “adoption decision” or “interests to try” have been ignored in many studies
on web-shopping intentions. In this study, the relationship between adoption decision
and web-shopping intentions, by considering the decision of accepting and rejecting
web-shopping, will be examined. Rogers (1995, p. 171) developed a conceptual
framework to illustrate the innovation-decision process in which the antecedents and
consequences of adoption decisions have been explained. Adoption decision in the
theory is defined as “a decision to make full use of innovation as the best course of
action available”. According to the theory the adoption decision usually comes before
behavioural intentions and actual behaviour (Rogers, 1995; Warshaw and Bagozzi,
1990). Applied in the context of web-shopping, “decisions to adopt” or “interests to try”
web-shopping should also come before the actual intentions to perform web-shopping.
When support information is enough and a favourable or unfavourable attitude has
already been acquired, an adoption decision is made leading to a choice of adopting or
rejecting the innovation. Many factors could influence the decision of adopting a
technology (Verhoef and Langerak, 2001; Rogers, 1995). According to Rogers’ (1995)
model, favourable or unfavourable attitude directly leads to adoption decisions and
adoption decision would lead to implementation. We therefore propose to test:
H3. Attitude towards web-shopping will directly affect adoption of web-shopping. Purchase via the
H4. Adoption decisions directly influence web-shopping intentions. internet
The relationship between past experience and attitude has also been described in the
Rogers’ (1995) model. A person gains knowledge about an object which is then
processed cognitively in mind and is used as input to the persuasion stage, where a
favourable or unfavourable attitude towards the object is formed (Rogers, 1995). In the 1229
context of web-shopping, past research findings also suggest that past online purchase
experiences may have an impact on future web-shopping intentions (Shim et al., 2001).
Another way for knowledge acquisition is through education (Rogers, 1995; Mowen
and Minor, 1998; Schiffman et al., 2001). Dabholkar (1994) suggested that when an
individual is in unfamiliar situations or has less prior knowledge of the problems
encountered, behavioural choice is mostly based on an expectancy-value model.
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As web-shopping is still at embryo stage in Hong Kong, accurate information


provided through education is very important, as it will influence the attitude
formed and consumers’ behavioural choice. To explore these problems we hypothesize
that:
H5. Past web-shopping experience affects web-shopping adoption decision
positively.
H6. Past web-shopping experience affects attitude towards web-shopping.
H7. Experience with the web is positively related to the past web-shopping
experiences.
H8. Web-shopping experience is positively related to web-shopping intentions.
In traditional store promotions, “promotional offers” are used as incentives to push
purchase decisions (Bagozzi et al., 1998). Sales promotion are “direct inducements to
the consumer to make a purchase” (Peter and Olson, 2002, p. 555) and promotional
offers can include coupons, rebates, free samples and bonus packs. “Because adopting
innovations or buying new products often entails risk for the consumer, marketers try
to reduce perceived risk where they can.” Foxall et al. (1998) studies found that most
people perceived high risks related to web-shopping which makes promotional offers
as a good tool to reduce perceived risks through which perceived values seems to
outweigh the perceived risks. Especially in Chinese community, “the extreme price
sensitivity of Chinese consumers, for example, when purchasing items for themselves,
makes them more responsive than Westerners to discount price offers and ‘good deals’
(Kindel, 1983)” (Schütte and Ciarlante, 1998). Therefore, we propose that among our
target group:
H9. Promotional offers will increase the intentions of web-shopping.
On product categorization, De Figueiredo (2000) noted that “on the web, all goods are
not equal” which implies that not all the products are suitable for e-tailing. Some
factors, such as fitness between product category with the profile of web users and the
difficulty of price comparison of that product category in offline environment, could
explain why some product categories could be successfully marketed on the web
(Gupta and Chatterjee, 1997). There exist at least three different types of categorization
IMDS relevant to web-shopping in the literature. The first kind is offered by Li and Gery
105,9 (2000) and is based on consumer purchasing behaviour generalized consumer products
into convenience goods, shopping goods and specialty goods. The second kind of the
categorization is search-goods vs experience-goods (Klein, 1998), and it is suggested
that search-goods are more likely to be purchased on the web. The third one is
proposed by De Figueiredo (2000), which is different from the other two in a manner
1230 that there is no sharp distinction between products in this categorization. The
categorization is presented as a spectrum, with “commodity products” as one end and
“look and feel goods” as another end. Products are located at different positions based
on the easiness to judge quality on the web. De Figueiredo found that the biggest
increase in e-commerce has occurred in product categories which are near commodity
product side of the spectrum. Product categorization could be a useful device for
marketers to understand suitability of different products for e-tailing which helps them
to prudently select the profile of product selling on the web. In this study, the effects on
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product categories on web-shopping intentions are studied and it is proposed that:


H10. Web-purchases are more likely to occur in search-goods categories but less in
experience-goods categories.
All hypotheses are summarized and presented in the model shown in Figure 1.

4. Methodology and results


4.1 The sample and data collection
Since education has been found to be negatively related to computer anxiety (Igbaria
and Parsuraman, 1989), university undergraduates, graduates and postgraduates in
the technical fields of engineering and computer science were chosen as the target
sample. The target sample size was 1,082 and 213 useful responses were received.
The main characteristics of our sample are a high level of technical education and high
degree of professionalism, and such a sample is therefore likely to the need
products/services transacted via the web. The returns indicate that over 90 per cent of
respondents had been using the internet for two or more years and that over 50 per cent
of the respondents had made web purchases before.

Figure 1.
Proposed model of
web-shopping
4.2 Pre-test and survey method Purchase via the
The questionnaire was pre-tested with a 20-person sample to ensure clarity, readability internet
and a logical arrangement of the questions. A web-based data collection system in the
form of a computerized self-administrated questionnaire (CSAQ) was utilized for data
collection (Ramos et al., 1998). The main advantages of this survey method over a
traditional questionnaire are improved data quality, response timeliness and cost
effective analyses (Clayton and Werking, 1998). An e-mail was sent to our target group, 1231
introducing the purpose of the survey, and inviting them to participate in the online
web survey. The SPSS 11.0 and AMOS 4.0 statistical software packages were used for
the data analysis and for the structural equation modelling, respectively.

4.3 Measuring attitude


The expectancy model (EM) was selected for measuring attitude towards
web-shopping. The main reason for this choice is that web-shopping is an activity
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which is totally under the volition of the respondents and in our sample PBC seems to
have no special significance. The EM was proposed by Fishbein (1963) and has been
widely employed for measuring attitude towards an object as well as attitude towards
behaviour or activities such as web-shopping (East, 1997). Ajzen (1988, p. 13) stated
that “the attitudes toward a behaviour is determined by the person’s evaluation of the
outcome associated with the behaviour and by the strength of these associations”. A
person can hold many different beliefs about an object (Ajzen and Fishbein, 1980), but
only those commonly held beliefs, called “salient beliefs”, are included in the model
(Ajzen and Fishbein, 1980; Peter and Olson, 2002; East, 1997). EM measures overall
attitude based on the salient beliefs about a behaviour by a weighted, ei, summation of
each of the salient beliefs,
!
X
n
bi ei bi :
i

A process called “beliefs elicitation” was performed to establish a set of salient beliefs
to measure attitude. We followed the guideline for the elicitation process suggested by
East (1997). The elicitation process resulted in a total of 14 salient beliefs, representing
various aspects of web-shopping, forming the construct of the questionnaire used to
measure attitude towards web-shopping. As East (1997, p. 111) has pointed out that
when an action is in consideration, “the salient beliefs largely concern the concomitants
and outcomes of the actions”. Our 14 items on salient beliefs were largely about the
perceived outcomes of web-shopping. Data collected was processed in accordance with
the expression of EM (Fishbein and Ajzen, 1975). The results of the agreement with
web-shopping beliefs and the strength of each belief are shown in Tables I and II, while
the distribution of total the attitude scores are shown in Figure 2.

4.4 Relationships between variables


To better understand web-shopping in Hong Kong, the relationships specified below
were explored:
.
web-shopping experience and web-shopping acceptance;
. web experience and web-shopping acceptance;
IMDS
Percentage of respondents
105,9 Strongly No Strongly
disagree Disagree opinion Agree agree

Worry about security breach 1.4 3.7 9.8 25.6 59.5


Worry about privacy violation 9.0 5.1 17.7 32.1 44.2
1232 Buy products at lower prices 5.1 20.9 38.6 23.3 12.1
Internet stores offer product guarantee 8.8 37.2 28.8 17.7 7.4
High chance requiring product-return/replacement 7.4 29.8 36.3 19.5 7.0
It is convenient 1.9 4.2 20.9 48.8 24.2
Easily find the products they want to buy 2.3 12.6 42.8 35.3 7.0
Cannot get the products soon enough after purchase 2.3 14.9 35.3 34.9 12.6
Save their time 1.4 12.6 40.0 36.3 9.8
Can get good service 5.1 28.8 52.6 11.6 1.9
Worry about the product quality 0.9 6.0 13.5 41.9 37.7
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Table I. Do comparison shopping easily 2.3 17.7 36.3 36.7 7.0


Respondents’ Have plenty of brand/product choices 2.3 17.2 40.5 31.6 8.4
web-shopping beliefs Easily obtain the latest product information 0.5 7.4 26.0 42.3 23.7

Percentage of respondents
Not important Not No
at all important opinion Important Very important

Payment security 0.9 2.8 2.8 14.0 79.5


Personal information privacy 0.5 1.9 6.5 19.1 72.1
Purchase at lower prices 2.3 9.3 28.4 41.9 18.1
Product guarantee 0.9 2.3 14.9 49.8 32.1
Easy product-return policy 1.4 6.5 19.5 45.6 27.0
Shopping convenience 0.5 6.0 25.1 46.5 21.9
Easy shopping process 0.0 7.0 26.0 47.0 20.0
Get the purchased item quickly 0.9 5.6 23.7 40.5 29.3
Save time 0.5 7.9 26.5 44.2 20.9
Good service 0.9 8.4 29.8 42.8 18.1
Examine the product before
purchase 1.9 9.8 26.0 36.7 25.6
Product comparison while shopping 0.5 8.4 27.4 48.4 15.3
Availability of different
Table II. brands/products options 0.5 3.7 33.0 43.7 19.1
Respondents’ evaluation Availability of the latest
of web-shopping beliefs product information 0.9 6.5 24.7 42.3 25.6

.
attitude scores and web-shopping acceptance; and
.
web-shopping experience and attitude scores.

It should be noted that web experience was measured by asking respondents to


indicate the number of years for which they have been using the web. At the same time,
they were also asked to indicate how often they perform five different activities on the
web. These activities include checking e-mail and communicating with others, working
online, reading news, browsing web sites and using online services. It is expected that Purchase via the
the frequency of performing these activities could reveal the extent of their experience internet
with the web. Graphical illustrations can provide a picture of even nonlinear
relationships and therefore are selected as the method for analysis in this part, see
Figures 3-6.

1233
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Figure 2.
Total scores of attitude
towards web-shopping

Figure 3.
Web-shopping experience
vs web-shopping
acceptance

Figure 4.
Web experience vs
web-shopping acceptance
IMDS
105,9

1234
Figure 5.
Attitude score vs
web-shopping acceptance
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Figure 6.
Attitude score vs
web-shopping experience

4.5 Effects of promotional offers


To test the effects of promotional offers on web-shopping intentions, we asked
respondents to rate their web-shopping intentions on six different product categories
including books, apparels, computer software, grocery, clothing accessories and
videos. Subsequently, respondents were reminded about the promotional offers and
were asked to rate their web-shopping intentions again for each of the product
categories. The difference between the two sets of web-shopping intentions was tested
with paired-sample t-test. The correlations between two variables in each pair were all
positive and significantly differed from zero (t , 0.0005). It can be concluded that the
presence of promotional offers can enhance web-shopping intentions.

4.6 Search goods vs experience goods


The search/experience goods categorization (Klein, 1998) was employed to examine
whether our target group also has a higher tendency to web-shop for some product
categories over the others. The two sets of web-shopping intentions responses as
discussed in last section was used again here. The averages of web-shopping
intentions for search goods (i.e. books, videos and computer software) were compared
with that for experience goods (i.e. apparels, grocery and clothing accessories).
Descriptive statistics was used to show whether differences exist. It was found that the
means of the web-shopping intentions for “Search Goods” were on average higher than
that for “Experience Goods”.
4.7 Web-search and web-purchase intentions Purchase via the
It is believed that people who plan to shop on the web are more likely to search for internet
product information on the web (Shim et al., 2001). In this study, respondents were
asked to indicate their likelihood of searching for information on the web about the six
different product categories. The relationship between web-searching and
web-shopping intentions is explored category by category, using correlation and
regression analysis. Results showed that the correlations between two variables in 1235
each pair were between 0.30 and 0.45 and that all of them were significant. The results
of the regression analysis, with R-sq ranging from 0.09 to 0.20 indicated that the
independent variables (searching product information of the web) do a good job in
explaining the variation of the dependent variable (web-shopping intentions).

4.8 The proposed model


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Principal components analysis (PCA) with varimax rotation was used to reduce the
number of items in the attitude construct, increasing the efficiency of SEM
(Tabachnick and Fidell, 1996). With a KMO (Kaiser, 1974, 1970) value of 0.673 and a
significant value for Bartlett’s test (Bartlett, 1954), the data was adequate for factor
analysis (Tabachnick and Fidell, 1996). The PCA results showed that the
dimensionality of the attitude construct was not supported and the 14 items were
combined on the basis of the given sub-dimensions into four factors. The first
factor, “Shopping Ease”, included five items related to time saving, choice availability,
shopping convenience, latest information availability and comparison shopping.
The last item was removed from the factor since its factor loading, 0.482, was below the
cut-off point 0.5. The second factor, “Safety”, was composed of three items which were
security and privacy of transaction and examination of product quality. The third
factor, “Store Offers”, consisted of three items: product guarantee, pre- and post-sales
service and low price which represented the offers provided by the web stores. The last
factor, named “At once” was about getting the products very soon after purchase. Only
“Shopping Ease” and “Store Offers” were selected for further analysis in the SEM due
their relatively high reliability (a . 0.7) and the proportion of variance (36 per cent)
extracted by the two factors.
To test the validity of the proposed model, six constructs were entered to the SEM
estimation including attitude towards web-shopping, adoption decision,
web-searching, web-shop intentions, past web-shopping experience and past web
experience. Maximum likelihood (ML) was selected as the method for estimation since
it performs reasonably well under different less-than-optimal analytic conditions such
as small sample size and excessive kurtosis (Hoyle and Panter, 1995; Olsson et al.,
2000). Multiple fit indexes should be used in reporting model fit, since different types of
indexes measure different aspects of model fit (Bollen and Long, 1993; Hoyle and
Panter, 1995). The x 2 statistic, x 2/df, GFI, AGFI, RMSEA, CFI and TLI were chosen to
assess model acceptance in this study.
4.8.1 Measurement model fit. Measurement model results, including the regression
weights, standard errors, construct reliability/corrected item-total correlations, are
shown in Table III. Factor loadings (named as “regression weight” in AMOS) of the
items in each constructs were statistically significant. The measurement model fitting
results revealed a x 2 of 34.63 (df ¼ 32; p ¼ 0.343), GFI of 0.973, AGFI of 0.943, TLI of
0.988, CFI of 0.993, RMSEA of 0.020 ( p ¼ 0.905) and x 2/df of 1.082. All parameter
IMDS
Constructs/indicators Regression weight SE Critical ratio Corrected item-total correlation
105,9
Web experience
Year of experience 1.000 – – 0.38
Reading news 1.2 0.284 4.252 0.37
Online services 2.477 0.498 4.917 0.43
1236 Attitude
Storeoff 1.000 – –
Guarantee 0.47
Price 0.39
Service 0.39 *
Shopease 1.746 0.823 2.123 0.72 *
Web-search – – – 0.73 *
Web-shopping intentions
Buy video 1.000 – – 0.57
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Buy computer software 1.012 0.147 6.862 0.49


Table III. Buy books 1.168 0.160 7.301 0.52
Measurement model fit
results Note: *Cronbach a of the construct before summation of individual item score

estimates were reasonable and statistically significant. The model represents a


substantively reasonable fit to the data.
4.8.2 Structural model fit. The structural model yielded a x 2 value of 51.41 (df ¼ 39,
p ¼ 0.088). The GFI, AGFI, TLI, CFI and RMSEA were 0.960, 0.932, 0.954, 0.967 and
0.039 with p ¼ 0.731, respectively and x 2/df was 1.318. The model is quite acceptable
and fits the date well. Further modifications of the model were therefore regarded as
unnecessary, thereby avoiding the risk of over-fitting. We conclude that the model
represents a statistically good fit.
4.8.3 Hypothesized relationships. The results showed that not all of the parameters
were significant in our study, see Figure 7. One of the proposed hypotheses was not
supported (the CR was less than 1.96), while the rest were significant. H1, predicting a
positive relationship between attitude towards web-shopping and web-search
behaviour was supported. Results revealed that the path between these two
constructs was positive (g ¼ 0.47) and significant (CR ¼ 2.887). The proposed positive
relationship between web-search behaviour and web-shopping intentions (H2) was
also supported (g ¼ 0.51; CR ¼ 5.543). Hypothesis H3, proposing a positive
relationship between attitude towards web-shopping and adoption decision, was
supported (g ¼ 0.35; CR ¼ 2.870). Hypothesis H4, proposing a positive relationship
between adoption decision and web-shopping intentions, was also supported (g ¼ 0.16;
CR ¼ 2.062). Hypothesis H8 was also not supported (g ¼ 0.50; CR ¼ 1.715). The
remaining hypotheses were also supported.

5. Discussion and concluding comments


5.1 Attitude towards web-shopping
The results suggest that the web-shopping intentions of the survey group are relatively
low. Some possible reasons suggested below may partly account for the unfavourable
attitude towards web-shopping and the reluctance to adopt web-shopping. The first
reason is related to the relatively low popularity of web-shopping in Hong Kong.
Purchase via the
internet

1237
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Figure 7.
Structural modeling
results – unstandardized
estimates

Consumer behaviour in Asian communities is tends to be highly influenced by risk


perception. Only a very small minority is willing to be the first movers in innovations,
and trials by early buyers can soften the perceived risk for followers (Schütte and
Ciarlante, 1998). We believe that the majority of potential web-shoppers in Hong Kong
are now at the stage of observing the actions of others. Our results also show that
people with no previous experiences are more likely to reject web-shopping,
exaggerating of the security risk involved in web-shopping transactions. The second
reason could be concerned with the needs of web-shopping itself. The proposition here
is that this new shopping media has not yet properly met consumer needs, or that so
far it has failed to create a consumer need use it. Hong Kong has a relatively small
geographical area and a very convenient transport system. People can always go to a
supermarket or shopping centre by walking. Visiting a supermarket can be as frequent
as everyday or even several times per day if necessary. Also, most shops and shopping
malls in Hong Kong close late at night so that busy people can shop even late at night
after working hours.
There are other reasons that are more closely related to the Chinese culture.
As suggested by Schütte and Ciarlante (1998), the Chinese like human interaction when
shopping. Since the web has closed off the opportunity of direct human interaction in
shopping, web-shopping does not cater for interaction with friends, salespersons and
even other consumers and therefore may not be easily accepted by Chinese. Apart from
these reasons which we consider as important and obvious, there are still many other
possible causes influencing web-shopping attitude among the target group and the
general public.
IMDS 5.2 Underlying factors of web-shopping attitude
105,9 Three acceptable factors were revealed from PCA. First, “Shopping Ease” explained
19.2 per cent of the variation, the highest among the factors, suggesting that it may be
the most significant factor in determining the attitude. Local consumers are well
known for their quick pace and fast lifestyle which is also reflected in their shopping
behaviour (Baldwin, 1999). One would therefore expect convenience and ease of
1238 web-shopping to be a major factor in forming attitude towards web-shopping in
Hong Kong.
The second factor “Safety” explained 17.0 per cent of the variation of web-shopping
attitude. In terms of worries about security and privacy and the perceived importance
of security issues, our respondents are similar to the respondents in other studies.
Actually, security and privacy problems have long been explored in the same context
by many authors, e.g. Ranganathan and Ganapathy (2002), Rosenbaum (2002) and
Salisburym et al. (2000) also suggest that perceived risk is an influencing factor which
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obstructs consumers in proceeding to adoption decisions. Unfamiliarity with


web-shopping can also lead to excessively worries about security and may even
lead to a decision to rejection web-shopping.
The third significant factor in determining the attitude score is “Store Offers”,
explaining 13.5 per cent of the variation in attitude. In the context of marketing, “Store
Offers” affect the evaluation and choice process in consumer purchase decision
making. In our survey, respondents are probably comparing an in-store purchase with
a web purchase. When a web-store offer appears more attractive in comparison with a
traditional-stores offer, respondents’ attitude towards web-shopping can be expected to
be relatively positive. E-tailers are therefore recommended to increase the
attractiveness of their web offers so as to increase the likelihood of web sales.

5.3 The empirical model of web-shopping


5.3.1 From adoption to intentions. Web-shoppers will probably undergo a number of
cognitive thinking processes and affective decision stages before reaching a decision to
adopt web-shopping and forming web-shopping intentions. Rogers’ model of
innovation-decision process (Rogers, 1995) has offered a good framework in
understanding the processes leading to web-shopping adoption. The model proposed
in this study is in fact partly based on the framework proposed by Rogers (1995). First,
consumers gain knowledge about web-shopping through the personal experience of
using the web to perform various activities. Since web technology is also applied in
web-shopping, people who have web experience are more likely to adopt web-shopping
(Dickerson and Gentry, 1983; Bobbitt and Dabholkar, 2001). The knowledge gained
will be used as input to persuasion stage, where consumers evaluate the attributes of
web-shopping and consequently form the attitude towards web-shopping. Similar to
Rogers’ model, the adoption decision follows attitude formation and web-shopping
intentions follows adoption decisions in our model.
5.3.2 The role of web-searching. Investigating the existence of web-search behaviour
is another way to realize consumer acceptance of web-shopping as showed in our
results that web-search behaviour significantly mediates the relationship between
web-shopping attitude and web-shopping intentions, which is consistent with previous
findings (Shim et al., 2001). The two pathways linking web-shopping attitude to
web-shopping intentions are actually complementing each other. There are some
situations in which people have accepted web-shopping and even developed a habit of Purchase via the
searching for product information on the web. These people are more likely to internet
participate in web-shopping activities. At the same time, there are other situations in
which people accept web-shopping but have no motivation to participate in
web-shopping activities. It was found that one pathway will only account for some
situations while another pathway account for other situations. Therefore, the two
pathways are actually complementing each other to explain the relationship. 1239
5.3.3 Insignificant past experience-intentions relationship. The proposed positive
relationship between past web-shopping experience and web-shopping intentions was
insignificant and not supported in this study. This is the only unanticipated result which
deviated from the findings in other studies. The reason may be related to consumer
satisfaction. “Satisfaction is the consumer’s fulfilment response” and it is concerned with
the “pleasurable level of consumption related-fulfilment” (Oliver, 1997). The satisfaction
itself would become a reinforcer which may increase the probability of repeated
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behaviour (Mowen and Minor, 1998). A consumer would be more likely to engage in
web-shopping activities again if s/he is satisfied with the web-shopping experience and
vice verse. Although we have taken into consideration the effect of past web-shopping
experience, the overall consumer satisfaction with past web-shopping experiences was
not considered. It seems that the direct path between past web-shopping experiences and
web-shopping intentions tends to ignore the role of web-shopping satisfaction and this
may be one of the reasons explaining the insignificance.
5.3.4 Overall model. The overall model describes the various stages that consumers
will experience before the formation of web-shopping intentions. The model would be
useful for marketers when attempting to intervene into consumer decisions and
behaviours, in order to encourage consumers to accept and participate in web-shopping
activities. According to our model, actively educating consumers will obviously
improve frequency of use, and the knowledge gained will in turn affect attitude
formation. Therefore, e-tailers should educate consumers with accurate knowledge of
web-shopping and teach them the mechanics of conducting web-shopping since
favourable/unfavourable attitude is very much determined by the customer’s state of
knowledge, and evaluating attributes towards web-shopping involves the application
of this knowledge. Since the mass media is an important information source, sincerity
in reporting news about web-shopping is an important, but possibly an uncontrollable
factor, and biased reporting will probably sway consumer attitude away from
web-shopping.

5.4 Other factors influencing intentions


The use of promotional offers to boost sales volume has been an effective practice in
the retailing industry since its inception. We found that web-shopping intentions were
higher with the presence of promotional offers. When consumers cannot perceive the
benefits of shopping on the web, they may reject web-shopping. Especially when they
habitually shop in stores, which is the case in Hong Kong, it is difficult to get them to
change their shopping mode from store to the web. The presence of promotional offers
can influence purchase decision during alternative evaluation and choice making. It is
suggested that e-tailers could make more frequent use of promotional offers as
marketing tools to boost sales volume.
IMDS In general, products with standardized attributes such as quality, variety and price
105,9 that people would perceive less risk in their purchase decisions are relatively suitable
to be sold in the web environment. Our data also showed that the web-shopping
intentions for search-goods were on average higher than that for experience-goods. It is
inappropriate to assert that e-tailers should sell search-goods only in order to survive in
the web environment. However, special care should be taken when marketing
1240 experience-goods. Particularly, e-tailers have to find out how to convince consumers
about the quality/functions of experience-goods on the web which is not as easy to do
as that for search-goods. In addition to search-goods and experience-goods, the web is
also a good media to sell specialty goods or rare goods which serves the niche market.
The web becomes an excellent agency and acts as a good selling channel which
facilitates sales transactions of those goods worldwide. Owing to the effects of product
categories on the web-shopping intentions, e-tailers should meticulously choose the
profile of product categories sold in their e-stores.
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5.5 Suggestions to e-tailers


For a web-purchase to occur, the web must necessarily present itself in the consumer’s
mind and in the consideration set as one of the possible shopping modes for the
particular purchase situation. Therefore, it is recommended that e-tailers promote their
web sites by every means, so that their web sites can become a part in consumers’
consideration set whenever relevant purchases occur; see Cao et al. (2005). When
consumers become familiar with the e-tailer and the web site, the possibility of
occurrence in the consideration set as well as the possibility of making web-shopping
will increase. Second, it is a natural tendency for people to approach objects with a
well-known reputation or objects that people are generally familiar with through daily
use. Third, other than the concerns of retailers themselves, the products and features of
consumer behaviours, targeting a right group is also crucial to e-tailing success.
Our data showed that experienced internet users are more likely to be potential
web-shoppers and further suggesting that people who had previous web-shopping
experiences are more likely to engage in web-shopping activities in the future.
Moreover, people who have a general dislike for shopping and who tend to buy in a
great haste when the purchase becomes absolutely necessary may eventually be
another group to become web-shoppers. E-tailers should allocate their resources to
market their companies/products to those people who are very time-conscious, busy
and dislike shopping; see Newman et al. (2004) and Kao and Decou (2003). These people
will be more likely to appreciate the benefits offered by web-shopping such as
timeliness and convenience and willing to try to adopt this new shopping mode.

5.6 Epilogue
This study, like many any other studies, is limited by several factors that need to be
addressed in any further research. First, probability sampling methods could not be
used in our survey and had to be abandoned. The sample employed was composed of
technically educated undergraduates and graduates, which, although appropriate for
this study, may not be the population-wide representative and hence limits
generalizing to a higher level. Therefore, caution should be taken when trying to
interpret the results in a general context. Second, although PCA revealed a statistically
significant structure under the Attitude construct, the relationship between the latent
variable (attitude) and its observed variables (indicators) are not very strong. The Purchase via the
measures of attitude towards web-shopping need to be further improved by developing internet
more elaborate measures that allow for a richer coverage of different web-shopping
attributes. Third, the link between behavioural intentions and actual behaviour has not
been considered in current study. The discrepancies in these two constructs have been
addressed by Ajzen (1988) with the conclusion that it is not appropriate assert that
people who have intentions of web-shopping will actually take action to actually shop 1241
on the web. Further research would to include measures with regard to actual
web-shopping behaviour, something which could also prove interesting and possibly
fruitful. Finally, due to the limitation of the scope of this research, the number of
constructs selected for the study was rather limited. Further studies should identify
additional variables and include them in the model in order produce a better picture of
the processes leading to web-shopping intentions.
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Further reading
Fazio, R.H. and Zanna, M. (1981), “Direct experience and attitude-behavior consistency”, in
Berkowitz, L. (Ed.), Advances in Experimental Social Psychology, Academic Press,
New York, NY, pp. 161-202.
Kline, R.B. (1998), Principles and Practice of Structural Equation Modeling, Guilford Press,
New York, NY.
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