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Online
Factors affecting online repurchase
repurchase intention intention
Chinho Lin
Department of Industrial and Information Management &
Institute of Information Management, National Cheng Kung University,
597
Tainan, Taiwan, Republic of China, and Received 16 October 2013
Watcharee Lekhawipat Revised 16 December 2013
Accepted 23 December 2013
Institute of Information Management, National Cheng Kung University,
Tainan, Taiwan, Republic of China

Abstract
Purpose – The purpose of this paper is to investigate the effects of online shopping experience
and habit in relation to adjusted expectations for enhancing online repurchase intention.
Design/methodology/approach – The authors employed partial least square (PLS) as a technique
used to analyze the measurement and structural models. Data for this research were collected from
240 Taiwanese online shoppers who had experienced online shopping at least four times.
Findings – The result of this study indicates that online shopping habit acts as a moderator of both
customer satisfaction and adjusted expectations, whereas online shopping experience can be considered
a key driver for customer satisfaction. Furthermore, the research findings confirm that customer
satisfaction is a vital driver of adjusted expectations and online repurchase intention. Adjusted
expectations do mediate the impact of online repurchase intention.
Research limitations/implications – This paper highlights the effect of online shopping experience
and online shopping habit on enhancing repurchase intention. The result implies that the acquisition of
usage experience and spontaneous purchases not only leads to higher customer satisfaction and customer
expectations, but also strengthens online repurchase intention. The use of self-report scales suggests the
possibility of a common method bias. Future studies may further test the robustness of this study in
the interplay of experience and habit to shed more light on their relative importance in explaining online
repurchase intention.
Originality/value – This study extends expectancy-disconfirmation paradigm, especially in the context
of online shopping, by emphasizing cognitive, affective, and behavioral change on the attitude-intention
behavior of online shoppers.
Keywords Customer satisfaction, Adjusted expectations, Online repurchase intention,
Online shopping experience, Online shopping habit
Paper type Research paper

1. Introduction
A number of researchers have focussed on the relationship between customer satisfaction
and repurchase intention (Qureshi et al., 2009), but today studies have shown that higher
customer satisfaction alone does not necessarily result in the higher repurchase
(Pavlou, 2003). There may be several mediators linking to the relationship in repurchase
situation. For instance, an analysis of adjusted expectations has recurrently been used in
reference to the new paradigm of post-consumption (Ha et al., 2010). In post-consumption
the adjusted expectations of online shoppers will guide purchase behavior in the next Industrial Management & Data
period (Yi and La, 2004). Adjusted expectations not only are the consequence of customer Systems
Vol. 114 No. 4, 2014
satisfaction, but also serve as an anchor in evaluating future customer satisfaction pp. 597-611
in repurchasing (Ha et al., 2010). As post hoc expectations after the consumption r Emerald Group Publishing Limited
0263-5577
experiences, adjusted expectations will lead the customer to heighten sensitivity to DOI 10.1108/IMDS-10-2013-0432
IMDS product/service (Liao et al., 2010). In this context, if product/service performance is higher
114,4 than the initial customer expectations, customer will be pleased and probably quite
surprised as well, the satisfied customer may adjust his or her level of expectations
upward. However, the exact nature of the relationship between repurchase intention and
adjusted expectations in the online store is still unclear in the online shopping context.
Of particular interest to this study is the role both the online shopping experience
598 and habit play in acting as significant driving forces for online shopping behavior and
achievement of online customer retention (Khalifa and Liu, 2007). Several empirical
studies (Grewal et al., 2009) found that online satisfactory shopping experience can
increase repeat purchase intention. The self-perception theory (Johnson et al., 2001)
explains that people may continually adjust their perceptions as they acquire new
information about the focal behavior. Researchers also hold that as people gain more
experiences with online shopping, their feelings, perceptions, and beliefs concerning
the online shopping (Karahanna et al., 1999). In this light, it is possible to overestimate
the pivotal role of experience in customer’s adjusted expectations which is akin to prior
literature demonstrating how customer satisfaction builds upon its self and lead to
further online shopping experience. However, regarding customers’ adjusted
expectations, no conclusive studies are available on how online shopping experience
affects customer expectations.
There have been extensive studies that indicate online shopping habit is affected by
purchase intentions (Gefen et al., 2003). When behavior is repeated and becomes habitual,
it is considered an automated cognitive process in which a habit is practiced (Khare and
Inman, 2005). Some researchers suggest that a weak online shopping habit stem from
apprehensions in doing business via the net and with unfamiliar merchants, thus
affecting customer’s retention due to lack of satisfaction (Anderson and Srinivasan, 2003);
in other words, customers who have developed the habit of online shopping have
increased repurchase intentions through customer satisfaction. With regard to
post-consumption, customers will assess performance once the transaction if complete.
If the product or service brings the customer a high level of pleasure and satisfaction,
then we can assume prior expectations are highly adjusted. Unfortunately, prior literature
is inexistent in this regard, thus examining the effects of online shopping habit on
adjusted expectations can improve our understanding of online shopping business.
In order to fill these gaps, this paper studies how online shopping experience and
online shopping habit influence customer satisfaction and adjusted expectations
toward repurchase intention. Further investigations were conducted to better
understand the relationship among customer satisfaction, adjusted expectations, and
online repurchase intention. For this study two models were proposed: the online
shopping experience model and the online shopping habit model. The reason for the
two models is an attempt to clarify the ambiguity between the two notions. Due to
the fact that experience is a pre-requisite for habit formation, experience plays a critical
role when researching the development of habit (East et al., 1994; Khalifa and Liu, 2007).
However, some researchers have argued that experience is conceptually distinct from
habit and thus its validity as a proxy for habit becomes doubtful (Ajzen, 1991).
In the present study, the study investigates prior online shopping experiences and
compares its effects with those of online shopping habit.

2. Conceptual framework and hypotheses


Online business has grown exponentially due to strong consumer demands and the
increasing number and variety of products and services available. The psychological
environment influences repurchase intention (Limayem et al., 2000). Therefore, Online
this study draws on psychology, attitude-behavior model, and a contingency theory to repurchase
develop research model. Figure 1 presents our conceptual research model. We apply
adjusted expectations as the link between customer satisfactions and online intention
repurchase intention. Moreover, we recognize the complicated online consumer
behavior phenomenon (Darley et al., 2010; Lee and Chae, 2013). Therefore, this study
captures the effects of online shopping experiences and online shopping habit, 599
which are based on the idea that frequent and spontaneous purchases lead to the
formation of customer satisfaction and adjusted expectations.

2.1 The role of customer satisfaction


Customer satisfaction is one major determinant of achieving corporate objectives,
having a major effect on customer retention. As of recent, the most recognized and
accepted definition of customer satisfaction favors the notion of customers as affective
beings. The term, “affective being” is representative of a specific mental processes that
includes emotions, feelings (i.e. pleasure/displeasure, contented/frustrated), moods,
and attitudes of a customer (Chen and Cheng, 2012). Emotions are psychological that
grow from a consumer’s own thoughts, which are influenced from prior experiences
( Jang and Namkung, 2009). For the firms, customer satisfaction is an essential factor in
the firm’s profit via purchasing scheme.
In regards to the online environment, customer satisfaction is one of essential keys,
attributing to the increasing customer retention rate profitability, and long-term
growth of online stores (Chen et al., 2012). Studies have demonstrated the importance
of customer satisfaction on repeat purchase behavior; more specifically, satisfied
consumers are more likely to repurchase more in the future than dissatisfied customers
(Sanchez-Garcı́a et al., 2012). Hence, in regards to the online environment, customer
satisfaction plays a significant role in the decision making for online shoppers,
affecting repurchase behavior, and increasing repetitive purchases (Gupta and Kim,
2010). Therefore, we propose the following hypothesis:

H1a. Customer satisfaction has a positive effect on online repurchase intention for
the online shopping experience model.

H1b. Customer satisfaction has a positive effect on online repurchase intention for
the online shopping habit model.

Customer satisfaction acts as an emotional response to an evaluation process (Giese and


Cote, 2000), which taps into the cognitive domain. In post-consumption, the revision of
expectations is a new paradigm of post-satisfaction judgment, so called adjusted

Customer
satisfaction

Online
shopping Online
experience/ repurchace
habit intention

Adjusted Figure 1.
expectations Conceptual research model
IMDS expectations, which are updated through accumulated or current consumption experiences
114,4 (Yi and La, 2004). For example, if a customer experiences good feelings at lesser known
companies, the customer will be willing to revisit these companies. This is consistent with
prior research showing that customer expectations for higher satisfaction adjust based on
experience over time (Ha et al., 2010). Therefore, we propose the following hypothesis:

600 H2a. Customer satisfaction has a positive effect on adjusted expectations for online
shopping experience model.

H2b. Customer satisfaction has a positive effect on adjusted expectations for online
shopping habit model.

2.2 The role of adjusted expectations


Customers’ adjusted expectations are an effective tool for predicting repurchases behavior,
which are being influenced by cognitive judgment (Yi and La, 2004). Adjusted
expectations, which are highly affected by customer satisfaction along with predicting
online customer repurchase behavior, is the basis of the preceding discussion. Recent
studies propose that prior customer satisfaction in a repurchase situation is spontaneously
adaptive when customers are confronted with an expected consumption experience and
the previous satisfaction evaluations are available from memory (Mattila, 2003). Moreover,
the more customers have good experiences and feelings, the higher expectations are
adjusted according to the increasing repurchase intention from the great expectations of
customers (Szymanski and Hise, 2000). Therefore, we propose the following hypothesis:

H3a. Adjusted expectations have a positive effect on online repurchase intention for
the online shopping experience model.

H3b. Adjusted expectations have a positive effect on online repurchase intention for
the online shopping habit model.

2.3 The effect of online shopping experience on customer satisfaction and adjusted
expectations
Limayem and Cheung (2011) noted that frequency and duration of internet use is
positively related to intention of online purchasing; it means that large degrees of such
exposure can enhance a customer’s familiarity and knowledge about what is involved
in purchasing through the internet. Furthermore, online shopping encompasses a wide
range of product categories and services such as banking, tourism, hotel booking,
and current events. Experience therefore becomes a crucial concept for e-marketers
to evaluate and understand in order to increase the performance of online sales
(Rose et al., 2011; So et al., 2005), and to influence future online behavior (Ling et al.,
2010). It is well known that revisions of expectations occur due to accumulated
or current consumption experiences. Prior studies proposed that frequency of purchase
is positively related to online shopping tendency (Cho, 2004). Therefore, we assume
customer online shopping experience acts as a moderator for customer satisfaction and
adjusted expectations. Accordingly, we propose the following hypotheses:

H4. Online shopping experience has a positive effect on customer satisfaction.

H5. Online shopping experience has a positive effect on adjusted expectations.


2.4 The effect of online shopping habit on customer satisfaction and adjusted Online
expectations repurchase
The role of “habit” has been verified to play a role in behavioral intention and
continuance (Chiu et al., 2012). In focussing on behavioral intention, habit refers to an intention
automatic response. Mascarenhas et al. (2006) defined habit as the automatic behavior
developed during the past history of an individual, also referring to an interactive
effect where a particular behavior becomes more routine. The role of habit has been 601
a key issue in social psychology research on attitude-behavior models (Ajzen and
Fishbein, 2000), whereas frequency of past behavior plays an important role in the
measurement of past behavior and contributes to the prediction of future behavior over
and above intention (Limayem et al., 2007).
Individuals with online shopping habit would turn to the behavior response instead of
a physical outlet automatically without much consideration of whether or not there
was a definite shopping need (Chen and Cheng, 2012). By increasing a favorable feeling
toward a behavior, habit affects satisfaction directly. Furthermore, adjusted expectations
are updated based on prior expectations through accumulated experiences meaning
that post-purchase expectations are affected by the degree of satisfaction of each
previous purchase (Yi and La, 2004). A customer is likely to be more satisfied and
increase expectations when he/she feels good or satisfied with an online store more than
previous purchase. The customer will have increased expectations for the next online
purchase if he/she has acquired the habit of shopping online. We therefore propose the
following hypotheses:

H6. Online shopping habit has a positive effect on customer satisfaction.

H7. Online shopping habit has a positive effect on adjusted expectations.

3. Research methodology
3.1 Measurement development
To measure the various constructs, validated items were adapted from prior studies
and revalidated for this study. All the focal constructs of the model were measured
using reflective constructs that were adapted from literature and designed by using
a seven-point Likert scale to facilitate measurement, with a rating scale from (1)
“strongly disagree” to (7) “strongly agree.”
The following briefly describes the five variables used in our models. First, the
measurement for online repurchase intention was drawn from a prior study, which
measured the future propensity of a customer to repeat purchase intention at a specific
online store from which he/she had previously shopped (Khalifa and Liu, 2007).
The study used three survey items that are common in measuring future intention as
indicators of actual behavior. Second, the customer satisfaction construct is defined
as an affective response to the experience (Ting et al., 2013). The four-item measurement
for this construct was adapted from Bhattacherjee’s (2001b) study. These items were
designed to assess users’ attitude toward evaluated products. The third variable uses the
seven-item measurement adapted from Yi and La’s (2004) study, which investigated
the updated expectations of prior expectations after the consumption experience. In using
and integrating validated items from previous studies, the variables in this study
help provide new insight into our understanding of both online shopping experience
and habit, which we derived from modified items adopted from previous studies
(Khalifa and Liu, 2007).
IMDS 3.2 Sample and data collection preference
114,4 The sampled poll targeted experienced online shoppers who bought products or
services from a preferred online retail store. The purpose of using these samples was
regarding the frequent usages and automated habit of online shopping. Our research
methodology consists of two stages: survey of intentions and prior expectations of
online shopping, survey of behavior and adjusted expectations in post-consumption
602 to elicit the perceived consequences and the adaptive expectations of using the online
store. A mail survey was conducted in Taiwan, where a total of 1,000 questionnaires
were randomly distributed to potential respondents, some of whom were willing
to answer the questionnaire and some of which were unwilling. After the data was
collected, there were 617 initial respondents, but only 204 eligible respondents, who
had participated in online shopping at least four times. Participants were asked to
name their favorite online store, and then answer the questions in the context.
Of the eligible respondents, 129 are female. It was found that most of the
respondents tended to be younger than 35 years old. The majority of the respondents
were highly educated, consisting of nearly 100 percent having an undergraduate or
advanced degree, and experienced internet usage. In total, 62 percent of the
respondents frequently shop online a few times a month (Table I).

3.3 Common method bias


To determine the presence of common method variance bias among the proposed
variable, the most widely used technique is Harman’s one-factor test (Chuang and Lin,
2013). All self-report indicators used to measure the dependent and independent
variables were loaded together into a single exploratory factor analysis using varimax
rotation (Karahanna et al., 1999). According to this technique, if a single factor emerges
from the factor analysis, or one “general” factor accounts for over 50 percent of the
variant in the variables, then it is evident that the common method variance is present

Demographic Category Frequency %

Gender Male 75 36.76


Female 129 63.24
Age Less than 20 7 3.40
20-35 189 92.60
36-50 3 1.50
Over 50 5 2.50
Marital status Single 185 90.70
Married 19 9.30
Education High school 2 1.00
Undergraduate degree 142 69.60
Postgraduate degree 60 29.40
Experience with Less than 1 year – –
1-2 year 2 1.00
3-4 year 5 2.40
Over 4 years 197 96.60
Online shopping frequency Less than once a month 59 28.90
A few times a month 126 61.80
Table I. A few times a week 14 6.90
Demographic information About once a day 5 2.40
about the respondents Residing country Taiwan 204 100
(Ha and Park, 2012). The analysis of this study reveals that multiple factors were Online
extracted and that indicators for dependent variables and independent variables repurchase
were divided into different factors, with each factor accounting for less than 50 percent
of the total variance. Hence, the results of this test indicate that common bias is not intention
a significant problem with our data.

4. Data analysis 603


The research model was tested using the structural equation modeling (SEM). SEM is a
multivariate technique that permits the simultaneous estimation of multiple equations
and performs factor analysis including regression analysis all in one step (Hair et al.,
2006). A SEM using partial least squares (PLS) via SmartPLS 2.0 statistical software was
used for the analysis. PLS assesses the relationships between constricts, and between
constructs and their measurement items and enables a simultaneous analysis of whether
the hypothesized relationships at the theoretical level are empirically confirmed.

4.1 Measurement, validity, and reliability


To ensure the measurement, we used PLS to assess the psychometric properties of all the
scales used in this study. A set of deliberation in PLS methods was used to evaluate the
criteria for reliability, convergent validity, and discriminant validity using composite
reliability, factor loading, average variance extracted (AVE), and Cronbach’s a.
The research model consists of five latent variables, which employs the reflective
measurement model on each of the multiple-item scales. As shown in Table II, the
loading of all indicators were above 0.8, demonstrating convergent validity. In our

Constructs Loadings SE t-value

Online repurchase intention (ORI)


ORI01 0.94 0.02 61.61
ORI02 0.97 0.01 84.30
0Rl03 0.96 0.02 62.12
Customer satisfaction (CS)
CS01 0.95 0.01 66.26
CS02 0.95 0.01 88.10
CS03 0.93 0.02 45.50
CS04 0.96 0.01 81.37
Adjusted expectations (AE)
AE01 0.82 0.06 14.46
AE02 0.83 0.04 20.96
AE03 0.88 0.03 31.41
AE04 0.85 0.03 26.56
AE05 0.83 0.04 20.62
AE06 0.91 0.02 56.07
AE07 0.92 0.02 59.15
Online shopping experience (OSE)
OSE01 0.92 0.02 40.39
OSE02 0.92 0.02 42.67
OSE03 0.94 0.02 61.34
Online shopping habit (OSH)
OSH0I 0.92 0.02 53.79
OSH02 0.87 0.04 24.04 Table II.
OSH03 0.92 0.02 39.52 Measurement results
IMDS studies Cronbach’s a and composite reliability scores were used to ensure the reliability
114,4 of the measurement scales, and AVE was used to assess the convergent validity as well
as internal consistency. Results showed (Table III) that the Cronbach’s a scores of
all constructs were higher than 0.8, and the composite reliability scores clearly indicate
that the indices exceeded the recommended value of 0.7, which demonstrated adequate
internal consistency of the scales (Chin, 1998).
604 Furthermore, the AVE scores were also used to describe the average variance for
each measuring construct, thus validating potential constructs that have an AVE
of 40.5 (Chiu et al., 2009). From the result, all indicators exhibited an estimated
coefficient higher than 0.7, and the AVE scores ranged from 0.74 to 0.92, respectively.
Thus, as can be concluded from this data, the constructs had appropriate reliability
and convergent validity.
Subsequent testing confirmed the discriminant validity between the factors.
Discriminant validity was measured by comparing the square root of the AVE for
a given construct with correlation between the construct and all other constructs
(Fornell and Larcker, 1981). Table III shows the square root of AVEs vs the correlation
among the constructs, which reported root AVE value for each construct was larger
than the correlation among the constructs. It was possible to roughly evaluate the
estimated path coefficients. Consequently, this implied that the constructs and their
measures could be adequately discriminated, and appropriated to predict relevance for
the model.

4.2 Structural model estimation


Figure 2 shows all the path coefficients and variance explained in the research model
for online shopping experience and online shopping habit.
Table IV shows the hypothesis tests that were used to evaluate the adequacy
research models. The online shopping experience model accounted for 12 percent of the
variance in customer satisfaction, 63 percent of the variance in adjusted expectations,
and 65 percent of the variance in online repurchase intention. The results show that
customer satisfaction has significant positive effects on online repurchase intention
(b ¼ 0.49; po0.001) and adjusted expectations (b ¼ 0.77; po0.001), confirming H1a
and H2a. Adjusted expectations also have a significant positive effect on online
repurchase intention (b ¼ 0.37; po0.01), this leading to support H3a. Furthermore,
our results show that online the shopping experience has a strong effect on customer
satisfaction (b ¼ 0.34; po0.001), confirming H4. On the contrary, as hypothesized in
H5, the online shopping experience has insignificant effect on adjusted expectations
(b ¼ 0.06; p40.1), which showed lack of support for H5.

Correlations with
Construct a Composite reliability AVE ORI CS AE OSE OSH

ORJ 0.95 0.97 0.92 0.96


CS 0.96 0.97 0.90 0.78 0.95
Table III. AE 0.94 0.95 0.74 0.75 0.79 0.85
Assessment of internal OSE 0.92 0.95 0.86 0.30 0.34 0.32 0.93
consistency, convergent OSH 0.89 0.93 0.82 0.36 0.37 0.40 0.83 0.91
validity, and discriminant
validity Note: Diagonal elements (in italics) are square roots of average variance extracted
0.37***
(4.86) 0.49***
Customer 0.49*** Customer (3.89)
0.34***
satisfaction (4.01) satisfaction
(4.01)
R 2=0.12 R 2 = 0.14

Online Online Online


0.77*** shopping 0.75***
Online repurchase (13.55) repurchase
(16.54) habit
shopping intention intention
experience R 2 = 0.12 R 2 = 0.65

Adjusted Adjusted
0.13*
0.06 ns expectations 0.37** expectations 0.36**
(1.90)
(1.03) R 2 = 0.63 (2.95) R 2 = 0.64 (2.87)

Online shopping experience model Online shopping habit model

Notes: ***p < 0.001; **p< 0.01; *p< 0.1


intention

Results of PLS analysis


Online

Figure 2.
605
repurchase
IMDS Online shopping Online shopping
114,4 Hypothesis tests experience model habit model
b t-value b t-value

H1: Customer satisfaction - Online repurchase intention 0.49*** 4.01 0.49*** 3.89
H2: Customer satisfaction - Online repurchase intention 0.77*** 16.54 0.75*** 13.55
606 H3: Adjusted expectations - Online repurchase intention 0.37** 2.95 0.36** 2.87
H4: Online shopping experience - Customer satisfaction 0.34** 4.01 – –
H5: Online shopping experience - Adjusted expectations 0.06 1.03 – –
H6: Online shopping habit- Satisfaction – – 0.37*** 4.86
Table IV. H7: Online shopping habit - Adjusted expectations – – 0.13* 1.90
Results of the
hypothesis tests Notes: ***po0.001; **po0.01; *po0.1

We replicated the analysis using online shopping habit to compare its effect with
those of the online shopping experience. The empirical results were quite similar.
The online shopping habit model accounted for 65 percent of the variance in online
repurchase intention, 64 percent of the variance in adjusted expectations, and 14
percent of the variance in customer satisfaction. Similar to the online shopping
experience, the online shopping habit structure model revealed that the hypothesized
in H1b, H2b, and H3b were found to be statistically significant. Furthermore, online
shopping habit also play a significant role in customer satisfaction (b ¼ 0.37; po0.001),
confirming H6. In contrast to the online shopping experience, online shopping habit
has a significant effect on adjusted expectations (b ¼ 0.13; po0.1), which confirms
support for H7.

5. Discussion and implications


5.1 Discussion
The results from analyzing the constructs within both the online shopping experience
model and online shopping habit model show that all the relationships in both models
are significant, except for the efficiency path between the online shopping experience
and adjusted expectations in the online shopping experience model.
Regarding the online shopping experience model, the aim is to provide a comprehensive
review and critique of operations based on past behavior frequency issue. The results
show that online shopping experience has a positive effect on customer satisfaction,
which is consistent with previous study (Limayem et al., 2007). As customers
frequently make purchases, they tend to get better at it and start to associate feelings
of increasing competence and ease (Drucker, 1995), which may then contribute to an
intensification of the satisfaction level as the behavior is performed frequently. On the
other hand, the online shopping experience does not have influence on adjusted
expectations, implying the frequency and amount of time involved shopping online
does not intensify adjusted expectations. Although adjusted expectations tend to
be updated through cumulated or current consumption experiences, the level of
expectations can vary widely depending on the reference points the customer holds
(Bhattacherjee, 2001a) and across categories of product/service or industry context
(Kim et al., 2013). The fluctuation in the individual customer’s level of adjusted
expectations is more a function of changes in the performance perceptions of
situational circumstances rather than constrained to actual consumer experiences.
A customer might not consider an online shopping experience as critical in establishing
adjusted expectations toward the online repurchase intention. However, an online Online
shopping experience cannot positively affect adjusted expectations, rather it can repurchase
indirectly affect customer satisfaction.
The empirical evidence of the online shopping habit model reveals that online intention
shopping habit has positive effects on customer satisfaction and adjusted expectations.
The important role of online shopping habit suggests that spontaneous purchasing as
an online shopping habit would play a critical role in adjusted expectations toward 607
online repurchase intention. Thus, the result implies that habitual online shopping
leads to increased customer satisfaction and updated expectations.
Finally, both models found that customer satisfaction not only has a direct impact
on online repurchase intention but also has an indirect influence through adjusted
expectations. The result confirms the view of researchers Ha et al. (2010), who proposed
that adjusted expectations act as a mediator in linking customer satisfaction and online
repurchase intention. In the context of online shopping, adjusted expectations are
considered to be an essential driver of repurchase intention, and are imperative for online
retailers to understand when controlling adjusted expectations.

5.2 Theoretical and practical implications


Theoretically, this study uncovers additional perspectives in understanding online
repurchase intention via customer satisfaction and adjusted expectations. We present
other antecedents to examine both the cognitive and affective behaviors of online
shopping, being both a response to products and services that acts as stimulus in
shaping the customer’s evaluation and judgment. This is done through shaping
both the online shopping experience and online shopping habit, allowing us to gain
a greater theoretical understanding in regards to online shopping behavior. This study
contributes to the understanding of Oliver’s (1997) expectancy-disconfirmation
paradigm as a means for explaining adjusted expectations more fully and providing
guidelines for the further repurchase intention of online shoppers. Moreover, this study
explores how the online shopping experience and online shopping habit can stimulate
the customer’s perception of satisfaction, which enhances customer’s adjusted
expectations and customer repurchase intention. Additionally, we also present
a theoretical scenario wherein online shoppers’ expectations change, lending some
interesting points of discussion regarding how customers value both customer
satisfaction and online shopping habit, when considering specific online stores.
Because it is found that online repurchase intention better reflects how users’ attitude
and behaviors are formed, we proposed that such intention is a significant indicator
of online shopping performance.
As for practical implications, this study highlights the effects of the online shopping
experience and online shopping habit to enhance repurchase intention via customer
satisfaction and adjusted expectations. We know that customer satisfaction varies over
time, and it is difficult for online retailers to meet all customer expectations.
Online stores are strained by limited resources and the rapid change in technology.
The decisions regarding online shopping behavior should focus their efforts into
enhancing the online shopping habit, which will increase the usage of the online store.
Drawing from this research, online retailers should develop specific habit with buying
from their particular online stores. As such, it is imperative that online retail stores
provide online marketing promotions and use social media and social networks to
announce promotions for encouraging repeat purchase, thus enhancing the
development of online shopping habit.
IMDS 5.3 Limitations and future research
114,4 Although our findings are useful, limitations may have caused minor bias. The first
limitation of the current study is its cross-sectional nature and the study was based
on data that were collected using surveys rather than in an experiment setting.
We know very little about how the attitudes of a single shopper change. It would be
advantageous to see how online shoppers’ expectations change over time and across
608 situations. Future research should consider longitudinal studies to investigate the
changing of customer expectations in explaining repurchase intention. Furthermore,
the use of self-report scales suggests the possibility of a common method bias for some
of the results. Future studies may further test the robustness of this study in the
interplay of experience and habit to shed more light on their relative importance in
explaining online repurchase intention.

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Further reading
Falk, R.F. and Miller, N.B. (1992), A Primer for Soft Modeling, University of Akron Press, Akron.
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Appendix Online
repurchase
intention

611

Table AI.
Questionnaire
of this study

About the authors


Dr Chinho Lin is a Chair Professor of the Department of Industrial and Information Management
and Institute of Information Management at the National Cheng Kung University, Taiwan,
ROC. He received his PhD in business administration from the City University of New York.
His works have been published in Information and Management, Decision Support Systems,
Decision Sciences, European Journal of Operations Research, Omega, International Journal of
Production Research, Journal of Operational Research Society, and other journals. His current
research interests include knowledge management, supply chain management, quality and
reliability management, and technology management. Dr Chinho Lin is the corresponding author
and can be contacted at: linn@mail.ncku.edu.tw
Watcharee Lekhawipat is now a PhD Student of Institute of Information Management at the
National Cheng Kung University, Taiwan, ROC. Her current research interests are in the field of
e-commerce and information technology, with a special focus online business and strategy
information management.

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