A Fresh Look on Determinants of Online Repurchase Intention

A Fresh Look on Determinants of Online Repurchase Intention

Ir. Jagjeet Singh Sarban Singh (Anglia Ruskin University, UK), Omkar Dastane (UCSI Graduate Business School, UCSI University, Malaysia), and Herman Fassou Haba (Université du Québec à Trois-Rivières, Canada)
DOI: 10.4018/978-1-7998-9764-4.ch005
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The e-commerce industry is continuously evolving and attained exponential growth as a result of the COVID 19-pandemic and the consequent lockdown. This has also generated possible changes in online consumer preferences. Although several studies have identified factors affecting online repurchase intention (ORI), a fresh look is required to identify key determinants of ORI. Thus, the current study, through extensive literature review, proposes and investigates such ORI determinants. Explanatory design with quantitative research method is used, and empirical data is collected using a self-administered e-questionnaire. A sample of 243 responses were collected from online consumers using snowball sampling. The data were then analyzed using AMOS 24 through series of statistical analysis. The findings show that web quality, service quality, credibility are key determinants of online repurchase intension. Electronic word of mouth (E-WoM) and customer relationship management (CRM) demonstrated insignificant impact on ORI. The results also identify perceived web quality as a factor with strongest impact on ORI.
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Over the period of last decade, electronic commerce (E-Commerce) has gained irreplaceable place in international retail framework. The advent of Internet transformed retail industry like any other sector in recent past. Nevertheless, ongoing fourth industrial revolution and digitization of the economy, consumers have well adopted online shopping and enjoying various perks of the same (Dastane, 2020). Worldwide, there are 4.66 billion internet users and around 2.14 billion people purchases goods online globally. Out of all the retail purchase occasions, 63% shopping occasions begin online. This sales growth is estimated to continue to rise and take up more of a retail share. According to (Statista, 2020), online sales is estimated to reach 6.40 trillion attributing to 21.8% of total retail sales by 2022.

This growth comes with several challenges and issues. The exponential growth has produced tremendous competition as several stalwarts’ retailers have rallied in this sector with their e-stores and mobile apps. Such a high competition has thinner the boundaries of innovation and resulted in difficulties in offering unique value propositions. High competition also results in high switching rate as well as low engagement with prospects (Hui, Dastane, Johari & Roslee, 2020). This then generates need to think on fostering loyalty among existing customers by encouraging repurchase intentions among them. E-commerce industry is struggling with conversion rate, and it is estimated that 62% of visitors will just search products and do not make the purchases (Statista, 2019). On one hand, it is challenging to get new consumers, at the same time, according to (KPMG, 2019), it can cost 5 times more to acquire new than retaining existing one. The success rate if selling products to existing loyal customers is around 60% compared to 5-20% for that for new customers. It then becomes of paramount interest for E-Commerce players, to understand key determinants of ORI.

A number of studies have investigated the concept of repurchase intention (see. Ali & Bhasin, 2019; Bulut, 2015; Edward & Lawler, 2001; Oliver, 1980) and attributed it as a phenomenon mainly resultant of satisfaction (Cheng & lee, 2011; Ibzan, Balarabe, & Jakada, 2016; Sharma, 2017), brand (Aslam, Ham, & Farhat, 2018) and trust (Barnes, 2007; Benazić, & Tanković, 2015; Tirtayani & Sukaatmadja, 2018). However, several other studies have confirmed that repurchase is not a phenomenon limited to single factor such as satisfaction (see. Bauer, Falk, & Hammerschmidt, 2006; Phuong & Dat, 2017). There can be several influences, mediators and moderators determining repurchase intentions (Tran, Pham, & Le, 2018). For example, adjusted expectations are analyzed in reference to the new paradigm of post-consumption (Ha et al., 2010). This is particularly in the context of online shopping whereby in post-consumption the adjusted expectations of online shoppers will guide purchase behavior in the next period (Yi and La, 2004). It is then imperative to analysis various such determinants in online context. Prior literature has identified range of aspects influencing ORI (see. Bhattacherjee, 2001; Pavlou, 2003). However, several factors need to be analyzed as a result of contemporary impacts, issues and recovery post COVID 19 pandemic which significantly influenced online consumer behavior (Sheth, 2020).

Key Terms in this Chapter

E-Word of Mouth: Electronic word of mouth is the process of passing information from customer to customer by utilizing online means such as posting of reviews, comments, likes, online recommendations, etc.

Online Repurchase Intention: Consumers’ willingness to buy a product (s) or brand(s) from a same online store repeatedly can be described as consumers online repurchase intention. It is also termed as repeat purchase, continuance intention etc. in marketing literature.

Customer Relationship Management: It is defined a business process through which online businesses tries to interact with their customers by utilizing analytical data to study customers’ behaviour in order to be able to retain its clients by enhancing their loyalty.

Service quality: It is the comparison of perceived expectations of a service provided by online retailer comparatively to the perceive performance of the service by such online retailer.

Credibility: Credibility of the online portals is defined as the confidence level that can exist between online consumers and online retailer for being trusted and believed before entering into a financial transaction. It is a subjective component for believability of a source or sometimes a message.

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