The table is representing the age groups of the participants who were questioned on the online retail shopping experience. A sample of 309 people was selected from different age groups that represent the ideal population perfectly. The table is exhibiting clearly that most of the people (84.8%) who participated in the survey were between 20 years to 39 years old, whereas the majority of the participants (49.2%) fall under the 20-29 years age group. The cumulative percent column is representing the progression of the sample size along with different age groups. The younger people had a contribution of 4.85% and the cumulative percent is showing that older aged people had 10.4% contribution in the sample size.
Among the considered demographic variables gender was one of the significant variables. It was observed from a different study on consumer behaviors that men and women showed completely different purchasing behaviors while they were making buying decisions. The table is representing the gender data of the selected 309 sample participants. Different research data revealed that in most of the countries women were the significant contributors in the online market.
Women bought more products online than men did, and the buying pattern of both genders seemed to be quite different. The study was conducted on 147 women who represented 47.6% of the sample size. On the contrary, 162 male respondents were observed in the selected sample population which was 52.4% of the sample size. In brief, it can be said the respondent sample was male dominant.
The table is representing an approximate annual income level of different participants in the survey. It was observed from the data that more than 51% respondents had an annual earning less than $40,000, among them 26% people earned less than $30,000 in a year. The cumulative percentage data showed that around 12% of the respondents were from the high-income group who earned more than $50,000 in a year. Only 13% of people can be considered as the middle-income group who were earning more than $40, 000 but less than $50, 000 in a year. Around 22% respondents’ income information was not found from the survey among them 11% was reported to be unemployed.
The table is showing information about the participant’s frequency of online shopping. Data was suggesting that around 42% respondents were not a frequent online shoppers but used to shop online sometimes. Very few respondents had little or no online shopping experience (1.3%) while some tried online shopping (7.8%) but were not fond of it. On the contrary, around 49% respondents did make a purchase from various online stores and they were still used to online shopping. Among these regular online shoppers, 9% of people seemed to be very active online shoppers. In brief, around half of the population can be considered as regular online shoppers who were buying their necessary products on the internet.
The table is representing a statistic of the average daily internet usage of the respondents. Data showed that on an average a person used internet for 4.89 hours daily although there was a variation of 2.51 to the usage. It was found from the observation that most of the people (53.9%) had experience of using the internet for four hours (4) or less in a day. Around 32% of the sample population used internet for five to seven hours a day and they could be considered as medium internet users. Among the respondents, there was a significant amount of people who can be considered as heavy internet users as they had reported an experience of using the internet for eight to fourteen hours a day.
Nationality
As the heading suggests the following table is exhibiting nationality information of the people who participated in the survey of the study. The table showed that the majority (46.6%) of the participants were from China, Japan, and Korea while an active participation (27.1%) came from other countries in Asia namely India, Pakistan, Srilanka, and Nepal.
A considerable participation (11%) came from the Southeast Asia. Although the sample was representing a strong presence of Asian participants, around 12% of respondents were from Europe, Middle East, and Oceania. Among the participants 5.8% were from Oceania, also around 3.4% participants were from African regions.
Results
To quantify the degree of influence of the product and service quality bought online on the repurchase intention of the buyers a survey was conducted on 309 people sample. This section of the report presented the survey findings in details, the analysis incorporated a good number of mathematical models to examine the realizable impact of the quality of online purchased products and services on the decision-making process of a consumer.
The very first subsection of the result shows the test of normality using “Jarque-Bera test of normality”. The next section presented the test result of factorial structure and the reliability of different ISRQ variables using “Keyser-Meyer-Olkin” measure of sampling adequacy. The following section presented the answer to the first research question, it was asked to find out the most dominant ISRQ dimension that influence consumers ISRQ perception.
The subsequent section presented the result of correlation between the customer perception and the repurchase intention. After that, an analysis result was presented to show quantitative impact of different subjective variables on the ISRQ perception of the consumers. And finally, a result of analysis was presented that examined the influence of identified subjective variables on the repurchase intention of the customers.
It was already explicated in the previous chapters, that the effective identification of the customers perception changing variables was the key to run the mathematical model which could quantify the impact of those identified variables influence on the customers repurchase intention. The presented results in the following subsections would resourcefully clarify, how the analysis of survey findings and study approaches were leading the research to the right direction to prove the underlying hypothesis of the study.
In running a successful multivariate analysis in which there are multiple dependent variables, the assumption of multivariate normality plays a significant role. The use of multivariate analysis was very important for this particular research as the study was designed to identify a range of dynamic variables and the multivariate model was the best model to employ in a dynamic environment. It was found from a different study on the selection of appropriate analysis models, the multivariate models were mostly used for predicting qualitative variables.
The study was primarily focused on predicting the significant qualitative variables that had a proven impact on the repurchase decisions of the consumers who purchased products or services from available online stores. Complying with the research need the use of multivariate model was the best alternative. The test of normality in the multivariate analysis was very crucial as the effectivity of the model result was meaningfully depending on the normality of the model. Signifying the importance of normality assumptions of a statistical model Ghasemi and Zahediasl (2012) pointed that when the normality assumptions do not hold, drawing an accurate and reliable conclusion about the reality becomes nearly impossible.
Although there were many alternative normality tests available, the Jerque-Bera test of normality was selected to check the normality of the data for this particular study due to its straightforward nature. Another important factor was, the test use skewness and kurtosis of the data to check the presence of attributes of normal distribution in the data. The descriptive statistics of the normality data from the Jerque-Bera test showed that normality (χ2) of different ISRQ dimension showed a considerable variation.
The six dimensions of performance variables exhibited a normality (χ2) from 1.365 (the lowest) to a score of 5.786 (the highest) while the four dimensions of access showed a normality (χ2) score from 2.712 (the lowest) to 6.767 (the highest). Additionally, dimensions (four) of securities exhibited the result 4.606 (low) and 5.795 (high), dimensions (four) of sensation presented a result of.619 (low) to 5.794 (high), and the dimensions (four) of information showed the outcome from 4.696 (low) and 5.696 (high).
The computed variables scores were lower than the χ2 highest acceptable critical table value 5.99 at p=.05, the degrees of freedom=2. Data was suggesting that all the calculated values (lowest.619 to highest 5.795) were less than the critical table value score 5.99.
And the result suggested not to reject the null hypothesis. Therefore, it was confirmed from the test of normality the multivariate model of the study held the assumptions of normality.
Discussion and Findings
This chapter of the report debates the findings of the study. In the previous chapter the results of the study were discussed in detail. The conclusion of the report was presented based on the brief outcomes of this chapter. The very first section of the chapter was started with a discussion on findings, in which all the major discoveries of the research were discussed comparing with the conclusions of similar studies which were reviewed earlier in this report.
A conclusion is presented in the following chapter by incorporating the calculated result, argumentation on highlighted issues, and reviewing other pieces of literature. The conclusion of the study was presented in three different subsections which are the probable implications of the study findings, limitations of the research, and recommendations for the potential users of the study. The outcome of the chapter could be considered as the ultimate output of the study which accomplishes the objective of the research.
The study was conducted to identify different variables that influenced consumer perceptions and therefore had a substantial impact on the customers repurchase intention. This chapter of the study incorporated the research objectives and presented the outcomes of different research initiatives that were aimed at achieving the desired research outcomes. The following sections of the chapter were presented in different subsections in such a way that the outcomes of the research point toward a valid conclusion.
The old Brick and Mortar model is replaced with the e-commerce business model due to the heavy development of information technology. The internet has become the medium of purchasing goods and services for many people who love to do shopping sitting in their home or their work place. Due to the convenience, the online shopping has been becoming popular throughout the world. Studies have revealed that online shopping is gaining popularity at such a rate that it might successfully take over the traditional Brick and Mortar approach of shopping (Agarwal, Selen, Roos, & Green, 2015; Azevedo 2013).
People from all the economic classes are becoming busier and busier with their work and therefore are suffering from shortage of time. In response to the changes in working conditions online shopping offers less time-consuming facilities for shopping. As a result, to that people prefer online shopping to the traditional method (Galliers, Kim, Shin, Ryoo, & Kim 2012; Ballantyne & Packer, 2013). Along with gaining popularity, the online shopping had raised some concerns that were threatening the growth of this potential business model. It is reported by many researchers that the offered service quality, products quality, after sales supports, delivery time, and an increasing number of cyber frauds are reducing the reliability of the online shopping platform (Baack, Harris, & Baack, 2013; Ors, Yilmaz, & Sen, 2015).
The reasons for decreasing reliability and increasing dissatisfaction among online buyers were identified to be the psychological perception, lack of desired quality, and post purchase behaviors (Hanks & Mattila, 2014; Wee, Ismail, & Ishak, 2014). Therefore, anticipating the actual demand of online products and services and growth of the online business model is questionable. The existing researches on the industries did not explain the variables that influence the buying behavior of the customers who have experienced online shopping, also it had become necessary to identify and examine the variables that influenced customers repurchase intention.
This study was conducted to shed light on this significant issue which could help improve the appeal of the online business model. The research objectives were to identify the variables that influence the customer’s perception of ISRQ and to determine the influence of the identified variables on the repurchase intention of customers. To achieve the research objective a study was conducted on 309 people who have online purchasing experience. The findings from the study are discussed in the following text.
Impact of Security Concerns on Internet Buying
The study reported that the customer’s concern on information security was the most important variable among all other variables that had influence on the perception of online retail service quality. A positive correlation of rs=.68 was found between ISRQ scale and the security concern from the analysis of responses from the sample population, and it was identified as the most correlated variable with ISRQ scale. Among the security dimensions, people were more concerned about their personal information security as they had the fear that the retailer would sell their personal information to a marketing company.
According to Zhang, Deng, Wei, Deng (2012) perception of security risk acts as a factor of reducing the purchasing intentions of a customer, and, as they also mentioned in their paper, the security risk in eCommerce exhibits negative outcomes on the online purchasing activities. The findings of Zhang et al. (2012) are complying with the findings of the study as the study identified the security concerns as the most important variable of the ISRQ perception of customers who buy on the internet. Similar to the research result, Al Kailani and Kumar (2011) found that cultures where avoidance of uncertainty was greater, perceived risk related to online shopping was high in there as well and impacted the online buying negatively.
Interestingly, Dai, Forsythe, and Kwon (2014) found that product itself and financial risk had negative impact on the purchase intention of a customer but they found privacy risk perception was not related to the online buying intention. The finding of Dai et al. (2014) opposed the findings of the study, the reason for the contrasting finding could be the inclusion of digital and marginally digital products in their research. Further researches on product category would help us understand the reason for which Dai et al. (2014) found a contradictory result. To sum up, it can be asserted that the personal security concern was one of the most influential variables that influenced the ISRQ perception and therefore the repurchasing intention of customers who bought online goods and services.
Impact of Information on Quality Perception
The analysis showed that the quality of information on the products and services could be considered as another important variable that had an impact on the customers quality perception. The information quality was reported to be positively correlated (ri=.66) with the ISRQ scale. It implied that quality of information presented on the websites helped the customers to decide to purchase the service or products.
Albarran (2017) agreed to the fact as his research reported that the website was the platform that customers used, to analyze the information on the services to make a purchase decision. The study result showed a similar result, the quality of information provided for the customers helped them to make a purchase decision. However, the difference between the promised product or services and the actual product did harm the repurchase decision.
Hence, the differences should be presented with proper information for the customers. Agreeing to the issue Crane and Matten (2016) concluded that the online retailers must meet the minimum level of customers expectation in terms of customers quality expectation, otherwise it is the responsibility of the retailer to present information on their website about the difference between the displayed product and actual product.
Gao, Zhang, Wang, and Ba (2012) conducted a research on the online purchase decision making in the context of unconscious thought and information quality. In their paper they concluded that with the unconscious thought high information quality had increased the buying intention and vice versa. They also mentioned that the result showed negative outcome when the offered products were known because in case of known products the thoughts were no longer unconscious thoughts. To sum up, information quality presented by the customers was a considerable variable that influenced the customers repurchase intention.
Impact of Gender, Age, and Income on Repurchase Intention
Gender, Age, and Income did not have any impact on the online retail quality perception, therefore these demographic variables proved to be insignificant in influencing the repurchase intention of a customer. An independent sample t-test was done to measure the impact of gender on the ISRQ perception, an ANOVA test was done to quantify the impact of Age and Income on the ISRQ perception. The results of the test were suggesting that there was no significant influence of these demographic variables on the ISRQ perception of customers. Khalifa and Liu (2007, p.8) included gender and age as variables into their model to measure the impact of these demographic variables and concluded that their coefficient path was not significant for intention formation of customers.
These demographic variables did not have any impact because they usually define the customer’s product choices, purchasing ability, and buying attitude; but the model of this particular study was used to measure the impact of these variables on the online repurchase intention. Probably for the same reasons Kalifa and Liu’s (2007) model did not find any impact of these variables on the repurchase intention measuring model. Similarly, Hernández, JimĂ©nez, and MartĂn (2011) tried to find out the impact of these demographic variables on the repurchase intention of online shoppers in their paper named “Age, gender, and income: do they really moderate online shopping behavior” and found that socioeconomic variable did not moderate the online shopping perception, as well as they did not have any impact on the repurchase intention of the customers.
On the contrary Amin, Rezaei, and Tavana (2015) found that gender differences had a significant impact on the online repurchase intention. They also quoted in their paper “Jackson et al. (2011) found that females derive greater levels of hedonic shopping value from a trip to the mall and also show more positive attitudes toward mall hygiene factors and entertainment options in comparison to males” (Amin et al., p.5).
The finding of Amin, Rezaei, and Tavana (2015) was different from the finding of the study. Although there were some researchers who found demographic variables had an influence on the online shopping perception but many studies, including the findings of this study, found demographic variables such as age, gender, and income were not significant variables that influence repurchase intention.
Internet Usage and Repurchase Intention
In order to find out the relation between the hours of internet usage per day and online shopping perception, and therefore the repurchase intention, the study measured the correlation between them. The result was suggesting that there was a negative correlation (r=-.026, p=.652) between the hours of internet usage per day and the ISRQ perception, and the result of t-test rejected the null hypothesis. A further analysis on the internet study data (see section 4.5) exhibited the same result and therefore, it was concluded from the study that the internet usage data had no significant impact on the ISRQ perception.
However, internet usage was positively correlated with the repurchase intention, it was observed from the study result F (2, 304) = 3.484, p =.032 that the more a customer used internet the more his/her repurchase intention increased for buying from a previous online retailer. From the three clusters of internet usage it was observed, people tended to repurchase more frequently as their internet usage increased (see section 4.6).
Moran (2015) explained in his article how people came to embrace technology where he had shown that the more a person used a new technology the more the person got adopted to it and therefore gained emotional satisfaction from the usage of technology. Similar to Moran (2015) the study result was suggesting increased usage of the internet helped people adopting the technology, therefore, it increased the online shopping which created repurchase intention among the customers. Although Ravens (2014) informed that the technology adaptation depended on the ease of use which was supported by the study.
Online Shopping Experience and Repurchase Intention
People who did more online shopping had more positive attitude towards the service quality of e-tailers. The post-hoc test result showed that the frequency of online shopping had a positive impact on the ISRQ perception. The study showed the increased shopping frequency increased the perception of quality of the online retailer service. According to Pappas, Pateli, Giannakos, and Chrissikopoulos, “Experience moderates the relationship of performance expectancy and as well as … customer satisfaction between the repurchase intention” (2014, p.11).
They proved empirically that when people were more experienced with online shopping then their performance expectancy became more accurate for the purchased products, and the online retailers became successful in meeting their expectations accordingly, which had improved their perception on the e-tailer’s service quality. As a result to that, the repurchase intention of experienced customer increased, so Pappas et al. (2014) concluded that more online shopping experience influence customers online repurchase intention.
The study finds people who had frequent purchasing experience showed a higher tendency of repurchasing from online stores compared to the people who had less online shopping experience. The test result F (3, 303) = 18.043, p <.001 suggested not to reject the null hypothesis, therefore, it was concluded that the more frequent online shoppers had higher tendency to repurchase from the same e-tailer. The findings of Khalifa and Liu (2007) also supported the study findings as they found more exposure to online shopping led to repurchase from the previous online retailers the buyers used. Many studies had concluded that trust was one of the most important factors that moderates the customers repurchase intention.
But to build trust the customer needs to buy a product from the e-tailer which can be followed by a repurchase from the same e-tailer until the customer is becoming a loyal buyer to the e-tailer. Pappas et al. (2014) explained in their paper how the frequency of online purchase built trust among the online buyers and eventually influenced their repurchasing intention. Rose, Clark, Samouel, and Hair (2012) tested different variables empirically where they had found that different variables had connections with the emotional condition of a customer, and these variables modified the customer’s perception about the product or services.
And they found online buying frequency as a significant variable that changed the customer’s state of mind. It was concluded from the findings that frequent buying practices generated a positive attitude towards online shopping and therefore had a considerable positive impact on the repurchase intention of the buyers.
Conclusion
The important findings from the study were discussed in the previous section with the relevant literature written on the issue. From the discussion, it was found that the online retail industry could become a potential industry if the retailers seriously consider the influential factors of repurchase intention of buyers. The study was structured to find out the variables that influence buyers’ perception of service quality they received from the e-tailers.
And It was found from the study that customers were concerned about their personal information security as they feared the e-tailer would have the option to trade their personal information to some other traders. Another important variable that changed the perception of the consumers was the shared information. It was found from the study that when an e-tailer shares authentic information related to the products and services, then the trust of the customer is increased towards the online seller which increases the ISRQ perception of the customers.
Although the study found a weak relationship between the ISRQ perception and repurchase intention, the study was suggesting that it was not the same in the case of information variables. The demographic variables (age, sex, income) did not play any important role in enhancing the repurchase intention although there were some academicians who disagreed with it, as they had found that female customers prefer to visit the shop physically and then make a purchase, while male customers enjoy online shopping more.
Among others variables that influence the ISRQ perception performance, access, and sensation were found to be correlated with the ISRQ perception. Different pieces of literature had reported these variables had a positive influence on the repurchase intention, although this study did not find any significant relevance of these variables with the customers repurchase intention.
Hours of Internet usage per day proved to be a useful variable for the online retailers as the study was suggesting that the increased amount of internet usage had increased the repurchase intention of the customers. But the considering issue was, an online retailer was unable to influence the customer’s perception for increasing internet time depended on the customer’s daily routine and necessity of internet usage. On the contrary, the internet usage did not influence the service quality perception of an online retailer which seemed to be very logical. Internet buying experience and buying frequency were the most influential variables that increased the repurchase intention of the customers. The study had found that with the increase in the frequency of online shopping experience customers satisfaction increased, and as a result to that repurchase intention had increased among the customers.
Implication for Online Buyers
The online buyers will be able to use the report to understand the current state of perception of online buyers which will help them become more positive about online purchasing. The study has shown that the usage of internet is positively related to the increase of repurchase intention from an e-tailer. It can be said from the study found, with the time the usage of internet around the world will be increasing as a result of that number of potential online customers will be increasing.
Along with the increase of internet usage if the online buying can be promoted with positive feedback around the world then the online retailing industry will have the opportunity to be accepted widely. According to Pouster (2016), the number of smartphones users are increasing drastically around the world and with an increase of smartphones usage number of internet users has increased as well. This research report can be used to aware this huge number of novice internet users for converting them into buyers of the online industry.
Implications for Online Retailers
The result of this report would be very useful for the people who are currently doing business online or thinking of starting an online retail store. The study is suggesting that the buying intention of the online customers depends on the security of the online store for its customers.
An online retailer might be aware of the fact from this report and take necessary steps for increasing the security of his online retailing website. Another important finding of the study is the demographic neutrality on the repurchase intention, if the online retailer has idea on the issue then they would have the opportunity of avoiding taking demography based marketing strategies. Retailers will be able to use the study result for identifying their information gap and incorporate a more better way of sharing information that increases the customer’s trust, and confidence. Additionally, the study would help the retailers to explore the advantages of selling different category products.
Online retailers can devote improving the performance of their product and services, enhance the access to their retail stores by creating more responsive website considering the increasing usage rate of the mobile device around the world. The study finds that the frequency of buying increases the repurchase intention of the customers, an online retailer can use this information to initiate marketing strategies to increase his sales to the people who already have bought products or services from him. In addition to that, the retailers could devote in improving the service quality to the existing customers for increasing the perception of the service quality offered by the retailer.
Also, the study is suggesting how the customer’s satisfaction can improve the repurchase intention of customers. The information will help the online retailers to examine their products and services compared with the attributes explained in the paper for enhancing their customer’s satisfaction.
Implication for the Online Marketers
The study result is signifying that the shared information about the product and service is a substantial indicator of service quality perception. Additionally, authentic information sharing is positively connected to the increase of repurchase intention. Using the findings of this study, people who are working as online marketers around the world would be able to devote themselves to improving the content of their online selling websites, developing the information sharing strategy of their websites, changing the marketing materials for attracting more new customers as well as increasing the repurchase intention of their existing customers.
As a matter of fact, the performance of the marketers is measured in terms of sales and generated revenue. The most important fact is, the implication of proper information sharing in the online retail business will help the marketers to ensure a sustainable growth for the online business they are working for.
Limitations of the Study
The study suffers some limitations. The selected sample size is very limited (309) compared to the total amount of the population so the sample may not be the proper representation of the population. Due to the time constraints, the sample representations were collected using online sources as well as from the people around the campus which might not be a proper representation of the general population. The research considered the buyer’s perception only, analysing the information collected from some successful online sellers could provide a better understanding of the customer’s quality perception.
The sample was collected in New Zealand so generalizing the result of the study could not be an ideal representation for the online buyers in another country. It is suggested to take necessary precautions while interpreting the study findings in the context of another country.
The methodology of the study might not have assessed all the outcomes of the issue, incorporating different methodology could provide a different result of the study.
Suggestions
It is suggested to the online retailers that they should seriously consider the security issue and ensure their customers that the retailer would not abuse the personal information of his/her customers. Use of authentic information on the website and delivering the best possible quality products would enhance the ISRQ perception of customers. Moreover, it will enhance the repurchase intention of the customers.
It is suggested to online shoppers that they should consider the online shopping positively but they also should consider the reality of information difference between the promised products and delivered products and services. Frequent purchasing experience would help the online shoppers in improving the accuracy of expected quality of the online purchased products. In addition to that, it would increase the online purchase satisfaction. It is also suggested to the online shoppers to examine the information provided on the services and products, compare the information among similar offers, and then select the best offer that matches the expected quality.
Further research can be done by analysing the inputs of different online retailers from different industries for better understanding on the customer repurchase intention. Researchers can examine the impact on some other variables such as online branding, retailer’s reputation etc. to identify the variables that might have a significant impact on the repurchase intention. It is strongly recommended for the future researchers to examine the variables that the study found positively correlated with their prediction capacity using regression analysis.
Further researches can be conducted by employing a larger sample from different countries around the world for finding a result representing the global online retail industry. It can also be researched to find the quantitative impact of proper website design, ease of access, and information quality on the customer retention.
Rather than researching for understanding the customer repurchase intention further research can be conducted on online buyers to understand the online buying behaviors of the customers. Also, research can be conducted to find the factors that motivate people for buying products online. Furthermore, research should be done on the behaviors of online retailers as it is important to know how they intend to serve the customers, why people should buy from online retailers, what their underlying motives for running an online retail store are and many other concerns like this.
References
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