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2014 6th International Conference on Information Technology and Electrical Engineering (ICITEE), Yogyakarta, Indonesia

An Integrated Model of Customer Repurchase


Intention in B2C E-commerce
Saowakhon Homsud, Singha Chaveesuk
Faculty of Information Technology
King Mongkuts Institute of Technology Ladkrabang
Bangkok, Thailand
peung0321@gmail.com, singha@it.kmitl.ac.th
AbstractWebsite is a key determinant of e-business
survival, competitive advantage, and success. Developing and
controlling quality of website that response different consumer
needs can affect customer satisfaction and repurchase intention.
This study constructed an integrated model of customer
repurchase intention in B2C e-commerce based on DeLoan and
McLeans IS success model for testing the relationships among
website quality, internet shopping value, customer trust,
customer satisfaction, and customer repurchase intention. Then,
empirical testing examines the effect of B2C website qualities on
the internet shopping value and subsequent customer
repurchases intention.
A survey of 384 shoppers of B2C e-commerce was conducted
to test a model. The model was shown a significant fit. Results
showed that system quality had a significant impact on the
hedonic shopping value, information quality had a significant
impact on the utilitarian shopping value, and service quality had
a significant impact both on the utilitarian and hedonic shopping
value. Moreover, results also showed that utilitarian shopping
value, customer trust and customer satisfaction had direct
positive effect on customer repurchase intention.
Keywordswebsite quality; B2C e-commerce; repurchase
intention

I. INTRODUCTION
Expansion of infrastructure, smartphone usage trend, and
growth of internet user are key drivers to growth of
e-commerce in Thailand. Thai government has supported
entrepreneurs to operate in electronic commerce (e-commerce)
because it can make lower cost, reach targets worldwide, and
respond customers rapidly.
In Thailand, most of e-commerce is B2C e-commerce
which has 75.2 percent proportion. In 2012 it had turnover
about 99,706 M.THB which was more than 2011 and 2010
17.87 percent and 47.10 percent respectively. It is shown that
e-commerce in Thailand increases continually. When
comparing with other countries in Asia; e.g. Japan, Singapore,
or South Korea, however, Thailand had lower than in
transaction value [1]. National Statistical Office points that the
critical problem and threat of e-Commerce in Thailand are
consumers lack of certitude and trust. Therefore, consumers
buy goods and services on the Internet only 4.5 percent of
Internet users [2].

Website is necessary for e-business to use shown image and


driven business successfully. Business should emphasize on
developing and controlling website to have quality because it
can build up customer trust to bring satisfaction and buying
decision [3], [4], [5]. Moreover, website can response different
consumer needs and make repurchase intention of consumers
[6]. It will be a key for business survival and long-term
success.
The purpose of this paper is to construct a proposed model
of customer repurchase intention in B2C e-commerce in
Thailand and finds factors affecting to repurchase intention.
II. LITERATURE REVIEW AND HYPOTHESES
A. DeLoan & McLean IS success model
DeLoan & McLeans IS success model was established in
2004 to measure challenges of the e-commerce [7]. The model
is related to 6 dimensions: (1) system quality, (2) Information
quality, (3) Service quality, (4) use, (5) user satisfaction, and
(6) net benefits, shown in the Fig. 1. Many previous research
used DeLoan & MacLean Model to study in electronic
commerce (e-commerce) such as Chen, Rungrueng- samrit,
Rajkumar and Yen [8] , Kim, Galliers, Shin, Ryoo, and Kim
[6], Hao, Duo-lin, and Zhi-jie [9], Lee, Choi, and Kang [10],
Wang and Hu [11].
B. Website quality
Website quality is an important factor for customer to
perceive overall quality of an internet shopping site [12] and
they are motivated to shop online [13].
There are several studies shown that the higher perceived
website quality affected customer satisfaction, and customer
satisfaction affected customer loyalty, respectively [14].
DeLoan & McLean suggested that website quality should be
measured by 3 dimensions, which included system quality,
information quality, and service quality.
1) System quality: DeLoan & McLean proposed that the
system quality was used for measuring the characteristics of an
e-commerce system. Previous studies used several factors to
measure the system quality e.g. Kim, Galliers, Shin, Ryoo, and
Kim used 2 factors (i.e. security and accessibility) [6], Chen,

978-1-4799-5303-5/14/$31.00 2014 IEEE

2014 6th International Conference on Information Technology and Electrical Engineering (ICITEE), Yogyakarta, Indonesia

Rungrueng- samrit, Rajkumar and Yen used 2 factors (i.e.


usability and system availability) [8], Hao, Dao-lin, and Zhijie used 4 factors (i.e. security, privacy, navigability,
functionality) [9]. This study used 4 factors (i.e.
security/privacy, accessibility, navigability, and functionality).
The system quality would affect the customers in terms of
their products purchase value consisted of utilitarian and
hedonic shopping value [11], [15] and their trust [16], [17].
For all reasons mentioned above, we proposed these
hypothesis:
H1: System quality affected the positive results to the
utilitarian shopping value.
H2: System quality affected the positive results to the
hedonic shopping value.
H3: System quality affected the positive results to the
customer trust.
2) Information quality: DeLoan & McLean found that the
quality of information was considered as a crucial factor which
helped the users acknowledge the benefits. Previous studies
identified several factors to measure the information quality;
e.g. Kim, Galliers, Shin, Ryoo, and Kim used 2 factors (i.e.
currency and variety) [6], Chen, Rungruengsamrit, Rajkumar,
and Yen used 3 factors (i.e. informativeness, organization, and
entertainment) [8], Hao, Dao-lin, and Zhi-jie used 4 factors
(i.e. complete, accuracy, currency, reliability) [9], Lee & Kozar
used 3 factor (i.e. relevance, currency, understandability) [18].
This study used 3 factors (i.e. accuracy, relevance, currency).
The website designation could let consumers acknowledge
information quality and let them be able to decide easily to buy
more. The consumers would be perceived shopping value by
utilitarian and hedonic shopping value [19]. Therefore, the
information quality affecting the consumption perceived the
utilitarian and hedonic shopping value as well as affecting the
customer trust [3], [17].
For all reasons mentioned above, we proposed
hypothesis:
H4: Information quality affected the positive results
utilitarian shopping value.
H5: Information quality affected the positive results
hedonic shopping value.
H6: Information quality affected the positive results
customer trust.

Fig. 1. DeLoan & McLean IS success model

these
to the
to the
to the

3) Service quality: DeLoan & McLeans IS success model


and Molla & Licker e-commerce success model added the
service quality into the model of e-commerce success [20].
Previous studies used several factors to measure the service
quality; e.g. Kim, Galliers, Shin, Ryoo, and Kim used 2 factors
(i.e. quickness and receptiveness) [6], Chen, Rungruengsamrit, Rajkumar and Yen used 2 factors (i.e. trust and
empathy) [8]. This study used 3 factors (i.e. quickness
responsiveness, assurance, and empathy). Many researches
were found perceived service quality would influence customer
satisfaction, and customer satisfaction would affect customer
loyalty, respectively. Moreover, previous studies indicated that
service quality affected both utilitarian and hedonic shopping
value [6], and it affected the customer trust [21].
For all reasons disscussed above, we proposed these
hypothesis:
H7: Service quality affected the positive results to the
utilitarian shopping value.
H8: Service quality affected the positive results to the
hedonic shopping value.
H9: Service quality affected the positive results to the
customer trust.
C. Customer trust
Trust was considered as one of the crucial factors affecting
the success of e-business. Consumers would be trusted when
they acknowledge the quality [16], [22]. In Thailand, ecommerce has not been popular because customers still lack of
trust in e-commerce. There are only 4.5 percent of internet
users who buy goods and service on e-commerce [2]. Recent
research on the customer trust found that the more the customer
felt trust and acknowledged the quality, the more they needed
to buy goods. Hence, this could be indicated that customer trust
would affect the customer satisfaction [3], [4],[16] and it would
affect the repurchase intention as well [6], [8].
For all reasons mentioned above, we proposed these
hypothesis:
H10: Customer trust affected the positive results to the
customer satisfaction.
H11: Customer trust affected the positive results to the
repurchase intention.
D. Internet shopping value
The customers, who buy goods and service on internet,
would seek for information before buying decision. However,
seeking behavior would be different. Janizeski divided search
behavior into 2 parts; i.e. goal-directed search and exploratory
search. Thus, search behavior correlated with goods and
service buying behavior [23]. Goal-directed search customers
would buy goods and services easily because they searched and
gathered only information for thier purchase intention of goods
and services. While exploratory search, customers would not
have motivation or main target to buy goods or services,
however they would buy from stimulators. Customers
perceived value from buying goods and services is divided into

2014 6th International Conference on Information Technology and Electrical Engineering (ICITEE), Yogyakarta, Indonesia

2 types; i.e. utilitarian shopping value and hedonic shopping


value. Hence, a customer could perceive two value types,
however the perception level depended on individual
characteristics and experience in shopping of each customers.
1) Utilitarian internet shopping value was perceivable
value of customer who had behavior in goal-directed search.
The characteristics of this group were exact target in buying
goods and services, planning for buying goods and services,
intending to collect information of goods and services need,
and seeking for speed information [23], [24], [25].
2) Hedonic internet shopping value was perceivable value
of customer who had behavior in exploratory search. The
characteristics of this group were not having target or planning
for buying, browsing for joyfulness, and escaping from daily
life. Moreover, buying would be catalyzed by stimulators [23],
[24], [25].
However, the experience of product purchase would make
the consumer acknowledge both utilitarian shopping value and
hedonic shopping value. But it would be different in terms of
quantity of acknowledgement [26], [27] depending on the
difference of specific characteristics of consumer.
Previous research indicated that both utilitarian and hedonic
shopping value influenced the customer satisfaction and both
shopping values would influence the repeated purchasing
behavior. [6], [24].
For all reasons mentioned above, we propose these
hypotheses:
H12: Utilitarian shopping value affected the positive results
to the customer satisfaction.
H13: Utilitarian shopping value affected the positive results
to the repurchase intention.
H14: Hedonic shopping value affected the positive results
to the customer satisfaction.
H15: Hedonic shopping value affected the positive results
to the repurchase intention.
E. Customer satisfaction
The organizations should emphasize the satisfaction created
for customers because it was regarded as a crucial backbone
which would cause the loyalty and repurchase intention [28].
Many previous studies indicated that customer satisfaction has
strongly affected the positive results of the loyalty and
repurchase intention [6], [29], [30]. However, customers would
be satisfied when they perceived value [6] and could feel
trusted [3], [4], [5]. According to this study, the customer
satisfaction would be replaced with the user satisfaction which
was the component of DeLone & McLeans IS success model.
For all reasons mentioned above, we propose these
hypotheses:
H16: Customer satisfaction affected the positive results to
the repurchase intention.

F. Repurchase intention
Cyr, Kindra, and Dash suggested that e-loyalty was defined
as the loyalty intended and planned by the electronics service
users to make the decision of buying goods and services from
the website in the future [31]. Many previous studies indicated
the customer loyalty and repeated purchases are key
determinants of B2C e-commerce survival, competitive
advantage, and the long-term success [6], [32], [33], [34].
III. RESEARCH METHODS
A. Data collection and analysis
To validate research conceptual framework, a survey
research with quantitative approach which was collected by
questionnaires was used for this study. The survey targeted a
sample of 384 Bangkok people who were used to buy goods
and services on the Internet with convenience sampling. The
questionnaire was divided into 3 parts: (1) general data of
respondents, (2) factors influencing to repurchase intention of
customers in B2C e-commerce, and (3) repurchase intention of
customers in B2C e-commerce. The questions in part 2 and 3
were 5-level in Likerts Scale from strongly disagree to
strongly agree.
IV. EMPIRICAL ANALYSIS
A. Relaibility
Firstly, reliability analysis was conducted by 30 samples
test and 384 samples research with Cronbachs Alpha. It was
found that Cronbachs Alpha range from 0.78 to 0.89 and 0.72
to 0.87 respectively, which more than 0.70 suggested by
Nunnally [35].



B. Demographic analysis
Results of the demographic were analyzed by SPSS 22. It
was indicated gender was relatively equally represented, with
female (58.1%) and male (41.9). The largest age group was 21
30 years old (41.4%), followed by 31 40 years old (35.7%),
41 50 years old (11.2%), and less than 20 years old (6.2%).
The most of respondents graduating in bachelor degree
(63.0%) and working at private company officer (55.57%). The
largest are group was average monthly income of respondents
was relatively equally represented, with 20,001 30,000 THB
(29.4%) and 10,000 20,000 THB (25.3%).
Most respondents had experience in online shopping 3 5
years (36.7%), visited shopping website 1 5 times per month
(45.8%), visited shopping website 1 3 hours per time
(46.4%), like to buy fashion, clothes, jewelry, and accessories
(55.5%), and used credit card as payment method (49.0%).

2014 6th International Conference on Information Technology and Electrical Engineering (ICITEE), Yogyakarta, Indonesia

TABLE I.
Construct

RELAIABILITY CONTRUCTS
Items

System quality

Information quality
Service quality
Customer trust
Utilitarian shopping value
Hedonic shopping value

Customer satisfaction

Repurchase intention

SYSQ1
SYSQ2
SYSQ3
SYSQ4
INFQ1
INFQ2
INFQ3
SERQ1
SERQ2
SERQ3
TRUST1
TRUST2
TRUST3
UTIL1
UTIL2
UTIL3
HEDO1
HEDO2
HEDO3
SATIS1
SATIS2
SATIS3
SATIS4
REP1
REP2
REP3

Factor
Loading
0.55
0.78
0.88
0.84
0.76
0.88
0.71
0.74
0.81
0.75
0.73
0.79
0.78
0.80
0.77
0.74
0.72
0.81
0.85
0.64
0.70
0.69
0.78
0.78
0.88
0.78

TABLE III.
CR

AVE

0.89

0.60

0.81

0.62

0.80
0.80

0.59

0.78

0.59

0.83

0.63

0.81

0.50

AGFI

CFI

RMSEA

1.521

0.923

0.903

0.967

0.037

Customer
Trust

Information
quality

.357***
.270***

.195**

Utilitarian
shopping value

.199***

Customer
satisfaction

.188**

Service quality

.168**

Hedonic
shopping value

.428***

.431***
.130*

Repurchase
intention

.175*

* Significant at p < 0.05 / ** Significant at p < 0.01 / *** Significant at P < 0.001

Fig. 2. Results of hypotheses testing

0.83

0.66

Moreover, results of the overall model fit indices of initial


model is shown in table II. It was found that the model fit
significantly but only AGFI was shown less than 0.90. After
the model was adjusted, results of overall model fit indices of
revised model is shown in table III.

Value

GFI

.344***

According to results of this study, factor loading range from


0.55 0.88, CR range from 0.78 0.89, and AVE range from
0.50 0.66. Therefore, factor loading was very significant, CR
and AVE were accepted, as shown in table I.

Chi-square
/df
451.940
/ 280

.255***

x2/df

.595***

0.59

C. Measurement model
The first of stage of SEM was measured validity and
reliability of each construct by confirmatory factory analysis
(CFA). Hair, Black, Babin, and Anderson suggested that factor
loading greater than 0.50 was considered very significant,
composite reliability (CR) greater than 0.60, and average
variance extracted (AVE) greater than 0.50 was used to
measure validity [36].

Index

Value

Chi-square
/df
421.429
/ 277

System quality

In this study, structural equation model (SEM) had 8 latent


variables and 26 indicators. Data analysis was proceeded in
two stages; i.e. measurement model and structural model. Both
measurement model and structural model were assessed using
AMOS 22. Model estimation was performed using the
maximum likelihood estimation (MLE) approach.

TABLE II.

Index

RESULTS OF REVISED MODEL

D. Structural model and hypotheses testing


The second stage of SEM was to confirm the hypotheses
among the constructs under study. The structural models
showed good fit indices (x2/df = 1.521, GFI = 0.923, AGFI =
0.903, CFI = 0.967, RMSEA = 0.037), the standardized path
coefficients were shown in Fig. 2. Moreover, results of
hypotheses testing show in table III. System quality affected
the positive results to the hedonic shopping value and customer
trust (H2: = 0.595, p = 0.000; H3: = 0.255, p = 0.000).
Information quality affected the positive results to utilitarian
shopping value and customer trust (H4: = 0.270, p = 0.000;
H6: = 0.357, p = 0.000). Service quality affected the positive
results to utilitarian shopping value, hedonic shopping value
and customer trust (H7: = 0.344, p = 0.000; H8: = 0.168, p
= 0.004; H9: = 0.188, p = 0.002). Customer trust affected the
positive results to customer satisfaction and repurchase
intention (H10: = 0.195, p = 0.002; H11: = 0.428, p =
0.000). Utilitarian shopping value affected the positive results
to customer satisfaction and repurchase intention (H12: =
0.199, p = 0.000; H13: = 0.431, p = 0.000). Hedonic
shopping value affected the positive results to customer
satisfaction (H14: = 0.175, p = 0.010). Customer satisfaction
affected the positive results to repurchase intention (H16: =
0.130, p = 0.032). While system quality did not affect the
positive results to the utilitarian shopping value (H1: = 0.049,
p = 0.345). Information quality did not affect the positive
results to hedonic shopping value (H5: = -0.003, p = 0.945).
Hedonic shopping value did not affect the positive results to
repurchase intention (H15: = -0.063, p = 0.270).
V. DISCUSSION

RESULTS OF INITIAL MODEL

x2/df

GFI

AGFI

CFI

RMSEA

1.614

0.916

0.895

0.961

0.040

Results suggested that website quality impact on internet


shopping value (utilitarian and hedonic internet shopping
value), which confirms results of Kim, Galliers, Shin, Ryoo,
and Kim [6]. Results showed that system quality had
significant impact on hedonic shopping value, who had

2014 6th International Conference on Information Technology and Electrical Engineering (ICITEE), Yogyakarta, Indonesia

behavior in exploratory search, not having planning for buying


but browsing for joyfulness and escaping from daily life.
Hence, developing website has to system quality
(security/privacy, accessibility, navigability, and functionality)
can response hedonic shopping value, which had important for
online shopping [37]. Information quality had significant
impact on utilitarian shopping internet value, who had
behavior in goal-directed search, Therefore, planning for
buying, intending to collect information of goods or service for
buying [23], [25]. While service quality had significant impact
on both utilitarian and hedonic shopping value, confirmed by
the view of Kim, Galliers, Shin, Ryoo, and Kim [6]. Hence
e-business should establish service quality (quickness
responsiveness, assurance, and empathy) to response different
consumer needs (utilitarian / hedonic shopping value).
Moreover, results also showed that website quality which
includes system quality, information quality, and service
quality had significant impact on customer trust, which were
confirmed results of Brown and Jayakody [16]. Then customer
trust had significant impact on customer satisfaction [3], [4],
[16] and strongly affected to repurchase intention [6], [8].
VI. CONCLUSIONS
This research was to construct an integrated model of
customer repurchase intention in B2C e-commerce in Thailand
based on DeLoan and McLeans IS success model for testing
the relationships among website quality, internet shopping
value, customer trust, customer satisfaction, and customer
repurchase intention.
Research has theoretical contributions by generating
knowledge of an integrated model of customer repurchase
intention in B2C e-commerce in Thailand. Moreover, results of
this research was found that utilitarian shopping value,
customer trust, and customer satisfaction had direct positive
effect on customer repurchase intention. In particular,
developing and controlling website with a good quality and
reliability is significant concerns for having business survival,
gaining competitive advantage, and achieving long-term
success.

TABLE IV.
Path Relationship
H1: SYSQ  UTIL
H2: SYSQ  HEDO
H3: SYSQ  TRUST
H4: INFQ  UTIL
H5: INFQ  HEDO
H6: INFQ TRUST
H7: SERQ  UTIL
H8: SERQ  HEDO
H9: SERQ  TRUST
H10: TRUST  SATIS
H11: TRUST  REP
H12: UTIL  SATIS
H13: UTIL  REP
H14: HEDO  SATIS
H15: HEDO  REP
H16: SATIS  REP

HYPOTHESES TESTING

Standardized
estimate
0.049
0.595
0.255
0.270
-0.003
0.357
0.344
0.168
0.188
0.195
0.428
0.199
0.431
0.175
-0.063
0.130

T
value
0.943
9.173
4.540
4.440
-0.057
6.055
5.558
2.904
3.084
3.120
6.273
3.393
5.428
2.565
-1.103
2.145

P value

Results

0.345
0.000***
0.000***
0.000***
0.945
0.000***
0.000***
0.004**
0.002**
0.002**
0.000***
0.000***
0.000***
0.010*
0.270
0.032*

Reject
Support
Support
Support
Reject
Support
Support
Support
Support
Support
Support
Support
Support
Support
Reject
Support

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