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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.
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
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.
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:
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).
Correlations with
Construct a Composite reliability AVE ORI CS AE OSE OSH
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)
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.
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Appendix Online
repurchase
intention
611
Table AI.
Questionnaire
of this study