Examining Online Purchase Intentions in B2C E-Commerce: Testing an Integrated Model

Examining Online Purchase Intentions in B2C E-Commerce: Testing an Integrated Model

C. Ranganathan (University of Illinois at Chicago, USA)
DOI: 10.4018/978-1-60566-128-5.ch012
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Research on online shopping has taken three broad and divergent approaches viz, human-computer interaction, behavioral, and consumerist approaches to examine online consumer behavior. Assimilating these three approaches, this study proposes an integrated model of online shopping behavior, with four major antecedents influencing online purchase intent: Web site quality, customer concerns in online shopping, self-efficacy, and past online shopping experience. These antecedents were modeled as second-order constructs with subsuming first-order constituent factors. The model was tested using data from a questionnaire survey of 214 online shoppers. Statistical analyses using structural equation modeling was used to validate the model, and identify the relative importance of the key antecedents to online purchase intent. Past online shopping experience was found to have the strongest association with online purchase intent, followed by customer concerns, Web site quality, and computer self efficacy. The findings and their implications are discussed.
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Internet and Web technologies have fundamentally changed the way businesses interacted, transacted and communicated with consumers. As a business medium, the Internet is unique in permitting firms to create interactive online environments that allow consumers to gather and evaluate information, assess purchase options, and directly buy products at their own convenience. Web-based retailing has become a global phenomenon with steady increase in online sales across the globe. The growth in online shopping has been motivated by several reasons—convenience, ease, pricing, comparative analysis, wider selection of products and services, and so forth.

Although online shopping has been on the rise, the challenges associated with Web-based retailing have also increased. First, the growing numbers of traditional merchants and pureplay Internet firms have greatly intensified online competition. With blurring geographical boundaries and reduced barriers to entry, the digital marketplace has become crowded with a large number of players. Second, while the online customer acquisition costs have increased significantly, the switching costs of online consumers have diminished exponentially. Third, despite the growing popularity of online shopping, several factors such as fear of fraud, security concerns, lack of trust have dissuaded consumers to purchase online (Gefen, Karahanna, & Straub, 2003; Kiely, 1997). Several studies have documented the problems associated with attracting and retaining online consumers. For instance, Vatanasombut, Stylianou, and Igbaria (2004) deliberated on the difficulty of retaining online customers and proffered strategies to keep novice and sophisticated users happy and loyal. Chen and Hitt (2002) suggested developing strategies to raise customer switching costs in order to deter them from moving to other Web sites.

Rise in online shopping has generated a growing body of research on online consumer behavior. This research can be grouped into those adopting a technological perspective and others with a marketing perspective. Scholars embracing a technological perspective have focused on technical elements such as Web-site navigation and design (Everard & Galletta, 2005; Liu & Arnett, 2000; Spiller & Lohse, 1997), software tools and technological aids (Heijden, Verhagen, & Creemers, 2003; Salaun & Flores, 2001; Wan, 2000). Researchers adopting a marketing perspective have focused their attention on the decision making process (Gefen, 2000; McKnight, Choudhury, & Kacmar, 2002a), and the marketing elements such as pricing, promotion, branding, reputation and customer attitude (Bart, Shankar, Sultan, & Urban, 2005; Chu, Choi, & Song, 2005; Iwaarden, Wiele, Ball, & Millen, 2004; Urban, Sultan, & Qualls, 2000). These research developments notwithstanding, several significant gaps still remain unaddressed. First, these divergent approaches seem to portray only a partial, yet unclear picture of online consumer behavior. While prior studies have helped identify key issues, lack of an integrated focus has marred the broader applicability of the findings. Second, while past research has identified several technological, behavioral and individual factors as important in influencing online consumer behavior, it is not clear if these factors have a differential impact (i.e., a more clear understanding is required if any of the factors explain or predict online shopping behavior more than the others). Third, a large number of studies have used student samples (Gefen, 2000; Mauldin & Arunachalam, 2002; McKnight, Choudhury, & Kacmar, 2002a, 2002b; Pavlou, 2003), thus raising questions on the generalizability of the findings to a large online consumer community.

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Associate Editors
Table of Contents
Mehdi Khosrow-Pour
Chapter 1
Manuel Mora, Ovsei Gelman, Guisseppi Forgionne, Doncho Petkov, Jeimy Cano
A formal conceptualization of the original concept of system and related concepts—from the original systems approach movement—can facilitate the... Sample PDF
Integrating the Fragmented Pieces of IS Research Paradigms and Frameworks: A Systems Approach
Chapter 2
Steven Alter
The work system method was developed iteratively with the overarching goal of helping business professionals understand IT-reliant systems in... Sample PDF
Could the Work System Method Embrace Systems Concepts More Fully?
Chapter 3
Alfonso Reyes A.
This chapter is concerned with methodological issues. In particular, it addresses the question of how is it possible to align the design of... Sample PDF
The Distribution of a Management Control System in an Organization
Chapter 4
Phillip Dobson
This chapter seeks to address the dearth of practical examples of research in the area by proposing that critical realism be adopted as the... Sample PDF
Making the Case for Critical Realism: Examining the Implementation of Automated Performance Management Systems
Chapter 5
Jo Ann Lane
As organizations strive to expand system capabilities through the development of system-of-systems (SoS) architectures, they want to know “how much... Sample PDF
System-of-Systems Cost Estimation: Analysis of Lead System Integrator Engineering Activities
Chapter 6
Kosheek Sewchurran, Doncho Petkov
The chapter provides an action research account of formulating and applying a new business process modeling framework to a manufacturing processes... Sample PDF
Mixing Soft Systems Methodology and UML in Business Process Modeling
Chapter 7
Aidan Duane, Patrick Finnegan
An email system is a critical business tool and an essential part of organisational communication. Many organisations have experienced negative... Sample PDF
Managing E-Mail Systems: An Exploration of Electronic Monitoring and Control in Practice
Chapter 8
Stephen V. Stephenson, Andrew P. Sage
This chapter provides an overview of perspectives associated with information and knowledge resource management in systems engineering and systems... Sample PDF
Information and Knowledge Perspectives in Systems Engineering and Management for Innovation and Productivity through Enterprise Resource Planning
Chapter 9
Gunilla Widén-Wulff, Reima Suomi
This chapter works out a method on how information resources in organizations can be turned into a knowledge sharing (KS) information culture, which... Sample PDF
The Knowledge Sharing Model: Stressing the Importance of Social Ties and Capital
Chapter 10
Jijie Wang
Escalation is a serious management problem, and sunk costs are believed to be a key factor in promoting escalation behavior. While many laboratory... Sample PDF
A Meta-Analysis Comparing the Sunk Cost Effect for IT and Non-IT Projects
Chapter 11
Georgios N. Angelou
E-learning markets have been expanding very rapidly. As a result, the involved senior managers are increasingly being confronted with the need to... Sample PDF
E-Learning Business Risk Management with Real Options
Chapter 12
C. Ranganathan
Research on online shopping has taken three broad and divergent approaches viz, human-computer interaction, behavioral, and consumerist approaches... Sample PDF
Examining Online Purchase Intentions in B2C E-Commerce: Testing an Integrated Model
Chapter 13
Nicholas C. Georgantzas
This chapter combines disruptive innovation strategy (DIS) theory with the system dynamics (SD) modeling method. It presents a simulation model of... Sample PDF
Information Technology Industry Dynamics: Impact of Disruptive Innovation Strategy
Chapter 14
Shana L. Dardan, Ram L. Kumar, Antonis C. Stylianou
This study develops a diffusion model of customer-related IT (CRIT) based on stock market announcements of investments in those technologies.... Sample PDF
Modeling Customer-Related IT Diffusion
Chapter 15
Bassam Hasan, Jafar M. Ali
The acceptance and use of information technologies by target users remain a key issue in information systems (IS) research and practice. Building on... Sample PDF
The Impact of Computer Self-Efficacy and System Complexity on Acceptance of Information Technologies
Chapter 16
James Jiang, Gary Klein, Eric T.G. Wang
The skills held by information system professionals clearly impact the outcome of a project. However, the perceptions of just what skills are... Sample PDF
Determining User Satisfaction from the Gaps in Skill Expectations Between IS Employees and their Managers
Chapter 17
James Jiang, Gary Klein, Phil Beck, Eric T.G. Wang
To improve the performance of software projects, a number of practices are encouraged that serve to control certain risks in the development... Sample PDF
The Impact of Missing Skills on Learning and Project Performance
Chapter 18
Leigh Jin, Daniel Robey, Marie-Claude Boudreau
Open source software has rapidly become a popular area of study within the information systems research community. Most of the research conducted so... Sample PDF
Beyond Development: A Research Agenda for Investigating Open Source Software User Communities
Chapter 19
Milam Aiken, Linwu Gu, Jianfeng Wang
In the literature of electronic meetings, few studies have investigated the effects of topic-related variables on group processes. This chapter... Sample PDF
Electronic Meeting Topic Effects
Chapter 20
A. Durfee, A. Visa, H. Vanharanta, S. Schneberger, B. Back
Text documents are the most common means for exchanging formal knowledge among people. Text is a rich medium that can contain a vast range of... Sample PDF
Mining Text with the Prototype-Matching Method
Chapter 21
Francis Kofi Andoh-Baidoo, Elizabeth White Baker, Santa R. Susarapu, George M. Kasper
Using March and Smith’s taxonomy of information systems (IS) research activities and outputs and Newman’s method of pro forma abstracting, this... Sample PDF
A Review of IS Research Activities and Outputs Using Pro Forma Abstracts
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