What are the Benefits of Continued Purchasing through the Internet? A Study of South Korean Consumers
Affiliation(s)
National Institute of Informatics 2-1-2 Hitotsubashi Chiyoda-ku. National Institute of Informatics 2-1-2 Hitotsubashi Chiyoda-ku, Tokyo.
National Institute of Informatics 2-1-2 Hitotsubashi Chiyoda-ku. National Institute of Informatics 2-1-2 Hitotsubashi Chiyoda-ku, Tokyo.
ABSTRACT
Since keeping the customer purchasing a product/service is essential to maintaining the profitability of any business, the continuance of purchasing through the Internet is vital to online business. This study is one of the few attempts to investigate the perceived benefit factors affecting customers’ intention to continue purchasing through the Internet. Ac-cording to a multiple regression analysis of online questionnaires filled out by 998 online customers in South Korea, extrinsic benefits measured in terms of time and money savings as well as intrinsic benefits measured in terms of pleas-ure, novelty, and fashion involvement have strong effects on the repurchase intention. Our findings indicate that cus-tomer retention must be promoted in Internet shopping by guaranteeing not only extrinsic benefits but also intrinsic benefits. This study discusses the relevant techniques of providing those benefits to customers and guidelines for future research.
Since keeping the customer purchasing a product/service is essential to maintaining the profitability of any business, the continuance of purchasing through the Internet is vital to online business. This study is one of the few attempts to investigate the perceived benefit factors affecting customers’ intention to continue purchasing through the Internet. Ac-cording to a multiple regression analysis of online questionnaires filled out by 998 online customers in South Korea, extrinsic benefits measured in terms of time and money savings as well as intrinsic benefits measured in terms of pleas-ure, novelty, and fashion involvement have strong effects on the repurchase intention. Our findings indicate that cus-tomer retention must be promoted in Internet shopping by guaranteeing not only extrinsic benefits but also intrinsic benefits. This study discusses the relevant techniques of providing those benefits to customers and guidelines for future research.
Cite this paper
nullK. Atchariyachanvanich, N. Sonehara and H. Okada, "What are the Benefits of Continued Purchasing through the Internet? A Study of South Korean Consumers," Journal of Service Science and Management, Vol. 1 No. 1, 2008, pp. 101-110. doi: 10.4236/jssm.2008.11010.
nullK. Atchariyachanvanich, N. Sonehara and H. Okada, "What are the Benefits of Continued Purchasing through the Internet? A Study of South Korean Consumers," Journal of Service Science and Management, Vol. 1 No. 1, 2008, pp. 101-110. doi: 10.4236/jssm.2008.11010.
References
[1] A. Bhattacherjee, “An Empirical Analysis of the An-tecedents of Electronic Commerce Service Continuance”, Decision Support Systems, Vol. 32, 2001, pp. 201-214. [2] B. Vatanasombut, A.C. Stylianou, and M. Igbaria, “How to Retain Online Customers”, Communication of the ACM, Vol. 47, No. 6, June 2004, pp. 65-69. [3] Cochran, W. G.: Sampling Techniques, John Wiley & Sons 1977. [4] D.J Kim, D.L Ferrin, H.R. Rao, “A Study of the Effect of Consumer Trust on Consumer Expectations and Satis-faction: the Korean Experience”, Proc. International Conference on E-Commerce, Pittsburgh, USA, 2003, pp. 310-315. [5] D.L. Hoffman, and T.P. Novak, “Marketing in Hy-permedia Computer-Mediated Environments: Conceptual foundations”, Journal of Marketing, Vol. 60, No. 3, 1996, pp. 50-68. [6] D.R. Campbell, and D.W. Fiske, “Convergent and Discriminant Validation by Multitrait-Multimethod Ma-trix”, Psychological Bulletin, Vol. 56, No. 2, 1959, pp. 81-105. [7] F.D. Davis, R.P. Bagozzi, and P.R. Warshaw, “Extrinsic and Intrinsic Motivation to Use Computers in the Work-place”, Journal of Applied Social Psychology, Vol. 22, No. 14, 1992, pp. 1111-1132. [8] G.A. Churchill, “A Paradigm for Developing Better Measures of Marketing Constructs”, Journal of Market-ing Research, Vol. 16, No. 1, 1979, pp. 64-73. [9] Hair et al., Multivariate Data Analysis, 6th Ed., Pren-tice-Hall, 2006. [10] I.K. Chung, and M.M. Lee, “A Study of Influencing Factors for Repurchase Intention in Internet Shopping Malls”, Proc. International Parallel and Distributed Processing Symposium, Nice, France, 2003, pp. 243a. [11] . Aberg, and N. Shahmehri, “An Empirical Study of Human Web Assistants: Implications for User Support in Web Information Systems”, CHI, Vol. 3, No. 1, 2001, pp.404-411. [12] J. Lee, J. Kim, and J.Y. Moon, “What Makes Internet Users Visit Cyber Stores Again? Key Design Factors for Customer Loyalty”, CHI Letters, Vol. 2, No. 1, 2000, pp. 305-312. [13] J.Y. Bakos, “Reducing Buyer Search Costs: Implications for Electronic Marketplaces”, Management Science, Vol. 43, No. 12, 1997, pp. 1676-1692. [14] K. Atchariyachanvanich, H. Okada, and N. Sonehara, “What Keeps Online Customers Repurchasing through the Internet?” ACM SIGecom Exchanges, Vol. 6, No. 2, 2006, pp. 47-57. [15] K.L. Hui, B.C.Y. Tan, and C.Y. Goh, “Online In-formation Disclosure: Motivators and Measurements”, ACM Transactions on Internet Technology, Vol. 6, No. 4, 2006, pp. 415-441. [16] M.J. Sirgy, “Self-Concept in Consumer Behavior: A Critical Review”, Journal of Consumer Research, Vol. 9, No. 3, Dec. 1982, pp. 287-300. [17] M. Koufaris, “Applying the Technology Acceptance Model and Flow Theory to Online Consumer Behavior”, Information System Research, Vol. 13, No. 2, 2002, pp. 205-223. [18] M. Koufaris, A. Kambil, and P.A. LaBarbera, “Consumer Behavior in Web-Based Commerce: An Empirical Study”, International Journal of Electronic Commerce, Vol. 6, No. 2, Winter 2001-2002, pp. 115-138. [19] National Internet Development Agency of Korea, Survey on the Computer and Internet Usage, Ministry of Infor-mation and Communication, South Korea, August 2006. [20] National Internet Development Agency of Korea, Survey on the Computer and Internet Usage, Ministry of Infor-mation and Communication, South Korea, February 2008. [21] Republic of KOREA e-Commerce, Overall Market Trends. Available at http://www.ecommerce.or.kr/ [22] R.-A. Shang, Y.-C. Chen, and L. Shen, “Extrinsic versus Intrinsic Motivations for Consumers to Shop On-line”, Information & Management, Vol. 42, 2005, pp. 401-413. [23] R. Goodwin, R.B. Ball, “What Marketing Wants the CEO to Know”, Marketing Management, Vol. 12, No. 5, 2003, pp. 18-23. [24] R.I. Haley, “Benefit Segmentation: A Decision-Oriented Research Tool”, Marketing Management, Vol. 4, No. 1, 1995, pp. 59-62. [25] S.L. Jarvenpaa, and P.A. Todd, “Consumer Reactions to Electronic Shopping on the World Wide Web”, Interna-tional Journal of Electronic Commerce, Vol. 1, No. 2, 1997, pp. 59-88. [26] Turban et al., Electronic Commerce 2002: A Managerial Perspective, Prentice-Hall, 2002. [27] T.P. Liang and H.J. Lai, “Effect of Store Design in Consumer Purchases: An Empirical Study of On-line Bookstores”, Information & Management, Vol. 39, No. 6, 2002, pp. 431-444. [28] Appendix A： Extrinsic benefits: [29] E1* Using Internet shopping is convenient. [30] E2* Using Internet shopping saves me time. [31] E3 Using Internet shopping would make it easier for me to shop or find information. [32] E4* Using Internet shopping would enable me to shop or find information more quickly than using traditional stores. [33] E5* Using Internet shopping saves me money. [34] E6* Internet shopping offers lower prices than tradi-tional stores for the same products. [35] E7* Internet shopping allows me to interact with other customers in EC communities. [36] E8* I should be given chances to interact with other like-minded people when I purchase through the Internet. [37] E9* Internet shopping recommends other things to purchase that other like-minded people appreci-ate. [38] E10* Internet shopping allows me to exchange ideas as well as compare experiences. [39] E11 Internet shopping recognizes me when I pur-chase through the Internet again. [40] Intrinsic benefits: [41] I1* I enjoy using Internet shopping. [42] I2* I am very happy to purchase products through Internet shopping. [43] I3* I am delighted with my experience of Internet shopping. [44] I4* Interacting with Internet shopping stimulates my curiosity. [45] I5* Internet shopping provides me with the products and supplemental information that I am inter-ested in. [46] I6 When I purchase through the Internet, Internet shopping websites offer me options to perform tasks in different ways. [47] I7 When I purchase through the Internet, it gives me opportunities to make myself appear fash-ionable. [48] I8* I like to boast of being the first one who pos-sesses a product. * Scales remained in exploratory factor analysis.
[1] A. Bhattacherjee, “An Empirical Analysis of the An-tecedents of Electronic Commerce Service Continuance”, Decision Support Systems, Vol. 32, 2001, pp. 201-214. [2] B. Vatanasombut, A.C. Stylianou, and M. Igbaria, “How to Retain Online Customers”, Communication of the ACM, Vol. 47, No. 6, June 2004, pp. 65-69. [3] Cochran, W. G.: Sampling Techniques, John Wiley & Sons 1977. [4] D.J Kim, D.L Ferrin, H.R. Rao, “A Study of the Effect of Consumer Trust on Consumer Expectations and Satis-faction: the Korean Experience”, Proc. International Conference on E-Commerce, Pittsburgh, USA, 2003, pp. 310-315. [5] D.L. Hoffman, and T.P. Novak, “Marketing in Hy-permedia Computer-Mediated Environments: Conceptual foundations”, Journal of Marketing, Vol. 60, No. 3, 1996, pp. 50-68. [6] D.R. Campbell, and D.W. Fiske, “Convergent and Discriminant Validation by Multitrait-Multimethod Ma-trix”, Psychological Bulletin, Vol. 56, No. 2, 1959, pp. 81-105. [7] F.D. Davis, R.P. Bagozzi, and P.R. Warshaw, “Extrinsic and Intrinsic Motivation to Use Computers in the Work-place”, Journal of Applied Social Psychology, Vol. 22, No. 14, 1992, pp. 1111-1132. [8] G.A. Churchill, “A Paradigm for Developing Better Measures of Marketing Constructs”, Journal of Market-ing Research, Vol. 16, No. 1, 1979, pp. 64-73. [9] Hair et al., Multivariate Data Analysis, 6th Ed., Pren-tice-Hall, 2006. [10] I.K. Chung, and M.M. Lee, “A Study of Influencing Factors for Repurchase Intention in Internet Shopping Malls”, Proc. International Parallel and Distributed Processing Symposium, Nice, France, 2003, pp. 243a. [11] . Aberg, and N. Shahmehri, “An Empirical Study of Human Web Assistants: Implications for User Support in Web Information Systems”, CHI, Vol. 3, No. 1, 2001, pp.404-411. [12] J. Lee, J. Kim, and J.Y. Moon, “What Makes Internet Users Visit Cyber Stores Again? Key Design Factors for Customer Loyalty”, CHI Letters, Vol. 2, No. 1, 2000, pp. 305-312. [13] J.Y. Bakos, “Reducing Buyer Search Costs: Implications for Electronic Marketplaces”, Management Science, Vol. 43, No. 12, 1997, pp. 1676-1692. [14] K. Atchariyachanvanich, H. Okada, and N. Sonehara, “What Keeps Online Customers Repurchasing through the Internet?” ACM SIGecom Exchanges, Vol. 6, No. 2, 2006, pp. 47-57. [15] K.L. Hui, B.C.Y. Tan, and C.Y. Goh, “Online In-formation Disclosure: Motivators and Measurements”, ACM Transactions on Internet Technology, Vol. 6, No. 4, 2006, pp. 415-441. [16] M.J. Sirgy, “Self-Concept in Consumer Behavior: A Critical Review”, Journal of Consumer Research, Vol. 9, No. 3, Dec. 1982, pp. 287-300. [17] M. Koufaris, “Applying the Technology Acceptance Model and Flow Theory to Online Consumer Behavior”, Information System Research, Vol. 13, No. 2, 2002, pp. 205-223. [18] M. Koufaris, A. Kambil, and P.A. LaBarbera, “Consumer Behavior in Web-Based Commerce: An Empirical Study”, International Journal of Electronic Commerce, Vol. 6, No. 2, Winter 2001-2002, pp. 115-138. [19] National Internet Development Agency of Korea, Survey on the Computer and Internet Usage, Ministry of Infor-mation and Communication, South Korea, August 2006. [20] National Internet Development Agency of Korea, Survey on the Computer and Internet Usage, Ministry of Infor-mation and Communication, South Korea, February 2008. [21] Republic of KOREA e-Commerce, Overall Market Trends. Available at http://www.ecommerce.or.kr/ [22] R.-A. Shang, Y.-C. Chen, and L. Shen, “Extrinsic versus Intrinsic Motivations for Consumers to Shop On-line”, Information & Management, Vol. 42, 2005, pp. 401-413. [23] R. Goodwin, R.B. Ball, “What Marketing Wants the CEO to Know”, Marketing Management, Vol. 12, No. 5, 2003, pp. 18-23. [24] R.I. Haley, “Benefit Segmentation: A Decision-Oriented Research Tool”, Marketing Management, Vol. 4, No. 1, 1995, pp. 59-62. [25] S.L. Jarvenpaa, and P.A. Todd, “Consumer Reactions to Electronic Shopping on the World Wide Web”, Interna-tional Journal of Electronic Commerce, Vol. 1, No. 2, 1997, pp. 59-88. [26] Turban et al., Electronic Commerce 2002: A Managerial Perspective, Prentice-Hall, 2002. [27] T.P. Liang and H.J. Lai, “Effect of Store Design in Consumer Purchases: An Empirical Study of On-line Bookstores”, Information & Management, Vol. 39, No. 6, 2002, pp. 431-444. [28] Appendix A： Extrinsic benefits: [29] E1* Using Internet shopping is convenient. [30] E2* Using Internet shopping saves me time. [31] E3 Using Internet shopping would make it easier for me to shop or find information. [32] E4* Using Internet shopping would enable me to shop or find information more quickly than using traditional stores. [33] E5* Using Internet shopping saves me money. [34] E6* Internet shopping offers lower prices than tradi-tional stores for the same products. [35] E7* Internet shopping allows me to interact with other customers in EC communities. [36] E8* I should be given chances to interact with other like-minded people when I purchase through the Internet. [37] E9* Internet shopping recommends other things to purchase that other like-minded people appreci-ate. [38] E10* Internet shopping allows me to exchange ideas as well as compare experiences. [39] E11 Internet shopping recognizes me when I pur-chase through the Internet again. [40] Intrinsic benefits: [41] I1* I enjoy using Internet shopping. [42] I2* I am very happy to purchase products through Internet shopping. [43] I3* I am delighted with my experience of Internet shopping. [44] I4* Interacting with Internet shopping stimulates my curiosity. [45] I5* Internet shopping provides me with the products and supplemental information that I am inter-ested in. [46] I6 When I purchase through the Internet, Internet shopping websites offer me options to perform tasks in different ways. [47] I7 When I purchase through the Internet, it gives me opportunities to make myself appear fash-ionable. [48] I8* I like to boast of being the first one who pos-sesses a product. * Scales remained in exploratory factor analysis.