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Master Thesis

BUSINESS AND SOCIAL SCIENCES


Department of Business Administration

Master of Science in Marketing

Determinants of online purchasing behavior:


An empirical investigation using an extension of the
Theory of Planned Behavior

Author: Vania Daniela Vera Velarde


Academic Supervisor: Athanasios Krystallis Krontalis

Number of characters (with spaces): 139,890


November 2012

Acknowledgement

First I would like express my gratitude to Athanasios Krystallis, my supervisor, for his
guidance and help during the entire working process. I also want to thank my Danish
family for their constant support and for their help with the sample collection. Last but
not least, I would like to express my appreciation to my parents, my sister and my
husband who are always there to give me the inspiration to achieve my goals.

Daniela Vera

CONTENTS

1.

2.

Introduction ........................................................................................................... 1
1.1

Background and Research Justification ........................................................... 1

1.2

Problem Statement and Research Questions .................................................... 4

1.3

Contribution.................................................................................................... 5

1.4

Methodology and Delimitations ...................................................................... 5

1.5

Structure ......................................................................................................... 6

Literature Review .................................................................................................. 7


2.1

2.1.1

Major Research Models ........................................................................... 8

2.1.2

The Theory of Reasoned Action (TRA) ................................................... 8

2.1.3

The Technology Acceptance Model (TAM) ............................................. 9

2.1.4

Theory of Planned Behavior (TPB) ........................................................ 10

2.1.5

Decomposed Theory of Planned Behavior (DTPB) ................................ 11

2.1.6

TAM vs. TPB vs. DTPB ........................................................................ 13

2.2

3.

Online Consumer Behavior ............................................................................. 7

Model Extensions ......................................................................................... 14

2.2.1

Trust ...................................................................................................... 15

2.2.2

Online Experience ................................................................................. 18

2.2.3

Product Types ........................................................................................ 19

2.2.3.1

Online Product Classifications ........................................................ 19

2.2.3.2

Online Behavior and Product Types ................................................ 21

Conceptual Model and Hypotheses ...................................................................... 22


3.1

The Conceptual Model .................................................................................. 22

3.1.1

Behavioral Intention and Behavior ......................................................... 22

3.1.2

Attitude and Behavioral Intention .......................................................... 23

3.1.3

Subjective Norm and Behavioral Intention ............................................. 23

3.1.4

Perceived Behavioral Control, Behavioral Intention and Behavior ......... 23

3.1.5

Decomposing Attitude ........................................................................... 24

3.1.6

Decomposing Subjective Norm .............................................................. 26

3.1.7

Decomposing Perceived Behavioral Control .......................................... 27

3.1.8

Product Type and Purchase Intention ..................................................... 28

3.2
4.

5.

Control Variables .......................................................................................... 29

Methodology........................................................................................................ 33
4.1

Research Approach ....................................................................................... 33

4.2

Instrument Development ............................................................................... 33

4.3

Sampling and Data Collection ....................................................................... 35

Data Analysis and Results .................................................................................... 37


5.1

Data Analysis................................................................................................ 37

5.2

Sample Characteristics .................................................................................. 38

5.3

PLS Analysis ................................................................................................ 41

5.3.1

5.3.1.1

Reliability ....................................................................................... 41

5.3.1.2

Validity .......................................................................................... 42

5.3.2

5.4

Measurement Model Results .................................................................. 41

Structural Model Results ........................................................................ 43

5.3.2.1

Variance Explanation ...................................................................... 43

5.3.2.2

Path Analysis .................................................................................. 44

5.3.2.3

Effect Size ...................................................................................... 44

5.3.2.4

Predictive Relevance....................................................................... 45

Hypotheses Testing ....................................................................................... 46

5.4.1

Bootstrapping ........................................................................................ 46

5.4.2

One-Way ANOVA ................................................................................ 48

6.

5.4.2.1

ANOVA Assumptions .................................................................... 48

5.4.2.2

ANOVA Results ............................................................................. 49

5.4.3

Additional Analysis Trust ................................................................... 50

5.4.4

Summary of Results of Hypotheses Testing ........................................... 51

Discussion ........................................................................................................... 54
6.1

How do perceived usefulness, perceived ease of use, compatibility and trust

impact attitude toward online shopping?.................................................................. 54


6.2

How do interpersonal and external influences impact the subjective norm

regarding online shopping? ..................................................................................... 56


6.3

How do self-efficacy and facilitating conditions impact perceptions of

behavioral control regarding online shopping? ........................................................ 56


6.4

How do attitude, subjective norm and perceived behavioral control impact

online purchase intentions and consequently, online purchasing? ............................ 57


6.5
7.

To what extent, if any, is product type related to online purchase intention? .. 58

Summary and Conclusion .................................................................................... 60


7.1

Summary of Findings .................................................................................... 60

7.2

Managerial Implications................................................................................ 61

7.3

Limitations ................................................................................................... 62

7.4

Further Research ........................................................................................... 63

8.

References ........................................................................................................... 64

9.

Appendices .......................................................................................................... 70

List of Figures
Figure 1: Thesis Structure ............................................................................................. 6
Figure 2: The Technology Acceptance Model ............................................................... 9
Figure 3: The Theory of Planned Behavior .................................................................. 10
Figure 4: The Decomposed Theory of Planned Behavior ............................................. 13
Figure 5: The Conceptual Model ................................................................................. 31
Figure 6: The Conceptual Model Results of Path Significances ................................ 53

List of Tables
Table 1: Peterson et al. (1997) Product and Service Classification Grid ....................... 20
Table 2: Construct Definitions .................................................................................... 32
Table 3: Sources of Questionnaire Items ..................................................................... 34
Table 4: Sample Characteristics .................................................................................. 38
Table 5: Products and Services Purchased Online ....................................................... 39
Table 6: Products and Services Selected to Answer the Survey ................................... 40
Table 7: Reliability Results Composite Reliability and Cronbachs Alpha ................ 41
Table 8: Validity Results AVE ................................................................................. 42
Table 9: Variance Explanation Results ........................................................................ 44
Table 10: Effect Size Results ...................................................................................... 45
Table 11: Predictive Relevance Results ....................................................................... 46
Table 12: Tests of PLS Paths with Bootstrap ............................................................... 47
Table 13: Products and Services Classification in This Study ...................................... 48
Table 14: Test of Homogeneity of Variances Product Types .................................... 49
Table 15: ANOVA Behavioral Intention and Product Types .................................... 49
Table 16: Behavioral Intention and Product Type Statistics ......................................... 50
Table 17: Low and High Trust Groups ........................................................................ 50
Table 18: Test of Homogeneity of Variances Trust Groups ...................................... 51
Table 19: ANOVA Behavioral Intention and Trust Groups ...................................... 51
Table 20: Robust Tests of Equality of Means Trust Groups ...................................... 51
Table 21: Summary of Results of Hypotheses Testing ................................................. 52

List of Appendices
Appendix 1: Questionnaire Measures and Sources ...................................................... 71
Appendix 2: Web-Based questionnaire ........................................................................ 72
Appendix 3: Purchase Frequencies .............................................................................. 77
Appendix 4: Danish Online Shoppers.......................................................................... 80
Appendix 5: Latent Variables Correlations .................................................................. 82
Appendix 6: Latent Variables Squared Correlations and AVE ..................................... 83
Appendix 7: Cross Loadings ....................................................................................... 84
Appendix 8: SmartPLS Output Path Analysis ........................................................... 88
Appendix 9: SmartPLS Output Bootstrapping .......................................................... 89
Appendix 10: P-P Plots and Q-Q Plots ........................................................................ 90
Appendix 11: Post Hoc Tests ...................................................................................... 91

Introduction

1. INTRODUCTION

1.1 Background and Research Justification


Internet & Retailing
The number of internet users has been steadily increasing all over the world, including
developing countries. In Asia and Eastern Europe internet access rates were
considerably high during the last year (Euromonitor International, 2012a). In addition,
more than 70 percent of the population has access to internet from home in Western
Europe, North America and Australia, and by 2015 the number will be closer to 80
percent in these regions (Euromonitor International, 2012a).
As the number of internet users increases, the number of consumers who shop over the
internet is also growing. For instance, the number of EU consumers buying products
and services online doubled to 40 percent in 2010 from 20 percent in 2005 (Muller et
al., 2011). However, not only does the number of online shoppers is growing, the
volume of their purchases is also increasing as online shopping is becoming more
popular across the globe. This is evidenced by global online retail sales, which reached
341.31 billion in 2011, a growth of 22 percent from 2010. In 2011 online retail sales in
Europe were 110.1 billion, an increase of 18 percent from 2010 (Euromonitor
International, 2012d). Although the forecast for the sector is to decelerate with an
annual growth rate of 13.7 percent, online retail sales are expected to continue growing
to 670 billion by 2015 (Datamonitor, 2011).
The increase in online retail sales is influenced not only by pure players but also brickand-mortar companies that have taken in the opportunities of e-commerce and are
implementing multi-channel strategies.
It is clear that e-commerce has created opportunities for both, small and large
companies and a wide range of benefits for consumers as well. Compared to traditional
brick-and-mortar stores, online stores have many advantages for consumers. An
important benefit for consumers is convenience, since consumers are able to purchase a
1

Excluding sales tax

Introduction

product or service without incurring in time and transportation costs; moreover, online
stores are available to consumers anytime and anywhere. Another benefit is that
consumers have easy access to product and service information; and many online stores
provide tools for product comparison and help in making purchasing decisions. Through
online stores, consumers have access to products in foreign countries that are not
available in their own countries. Lastly, online stores have reduced operation costs
compared to traditional brick-and-mortar stores, cutting on labor and store rental costs
which allows for lower prices offered to consumers (Euromonitor International, 2012b).
Further evidence is found in a Danish survey which revealed that the three main reasons
for shopping online were lower prices in online stores compared to physical stores,
convenience and quick price comparisons (Euromonitor International, 2012c).
Although online stores have many advantages, they also have disadvantages over brickand-mortar stores. One of the most important disadvantages is the fact that consumers
cannot touch, feel, taste or smell the products; this prevents consumers from assessing
product quality and increases risk perceptions. Other disadvantages are related to
delivery delays, security and privacy concerns which can affect consumers trust on
online stores.
A web retailers storefront is its website, meaning that when interacting with a web
retailer, consumers become IT users and face new challenges such as navigating the
website, information overload, unfriendly user interfaces, or complex ordering
processes. These challenges reduce consumers perceptions of control and confidence
over online activities.
Online retail sales show that online shopping remains popular for certain types of
products, for instance according to a study sponsored by the European Parliament, EU
consumers mainly buy clothes and travel related products and services online, whereas
computers and electronic products are the least likely to be bought online (Muller et al.,
2011).
Despite the fact that the figures show increasing online sales, many online consumers
use information gathered online to make purchases offline, this is evidenced by the high
abandon rates of shopping carts (Kiang et al., 2011). Consumers use online stores to
gain market knowledge, they learn about price levels and product differences, yet they

Introduction
dont make the final transaction with the online store (Broekhuizen and Huizingh,
2009).
Online Consumer Behavior Research
Given the widespread proliferation of online shopping, online consumer behavior has
become an important topic among researchers, this is illustrated by the great number of
publications on different fields such as information systems, marketing, management
and psychology (Cheung et al., 2005).
Researchers have been exploring online consumer behavior for many years and two
widely accepted views stand out in e-commerce literature: consumer-oriented and
technology-oriented view. The consumer-oriented view places focus on consumers
salient beliefs about online shopping, whereas the technology-oriented view studies the
impact of website design and usability on consumers behavior (Zhou et al., 2007). The
findings support both views and it is apparent in the literature that both views
complement each other.
Prior research shows that there are numerous factors that affect online consumer
behavior, nonetheless there are mixed findings in literature and many factors that
influence online consumer purchasing behavior have yet to be explored, especially
considering the dynamics of technology and consumer needs, which are constantly
evolving, and as a result significant factors five years ago may differ today as
consumers become more experienced internet users.
Furthermore, most of the previous online shopping research is focused on one specific
type of product such as books (Gefen et al., 2003, Lin, 2007), clothing (Ha and Stoel,
2009, Hansen and Mller Jensen, 2009, Kim and Kim, 2004, Tong, 2010, Kim et al.,
2003, Yoh et al., 2003), groceries (Hansen et al., 2004), financial services (McKechnie
et al., 2006, Suh and Han, 2003) and car insurance (Broekhuizen and Huizingh, 2009).
Previous research has also investigated product characteristics and online behavior
using a conventional product classification scheme, exploring how search, experience,
and credence goods vary in their impact on purchase intentions (Brown et al., 2003,
Girard et al., 2003, Korgaonkar et al., 2006, So et al., 2005, Soopramanien et al., 2007).
Few studies explore different product types and online purchasing intentions using a
classification scheme that takes into account the specific features of internet (Ian and

Introduction

Sui Meng, 2000, Vijayasarathy, 2002) and the findings show mixed results which call
for further investigation.

1.2 Problem Statement and Research Questions


From the preceding introduction, it is apparent that the fast technological progress is
changing consumer shopping habits. Research on online consumer behavior is
becoming more prominent in literature and prior studies have set the foundation into the
factors that influence online consumers, however, it is still not clear what drives
consumers to shop online. Moreover, e-commerce has become an important marketing
and sales channel, complimenting traditional channels, thus, it is important for retailers
to understand the determinants of online purchasing and what type of products or
services are more suitable to be marketed online, as knowing these factors will enable
retailers to meet consumers needs and for marketers to target consumers effectively.
The fundamental problem that motivated this study is what factors determine online
purchasing behavior.
In consideration of this problem, the purpose of this study was to understand online
consumer behavior by empirically testing a model based on an extension of the theory
of planned behavior (Ajzen, 1991). The conceptual model is based on Taylor and Todd
(1995) approach with decomposed belief structures and it is built upon literature
findings; the model will help to predict and examine online consumer behavior and
identify key factors which determine online purchasing.
The overall purpose of the thesis will be reached by attempting to answer the following
research questions:
RQ1. How do perceived usefulness, perceived ease of use, compatibility and trust
impact attitude toward online shopping?
RQ2. How do interpersonal and external influences impact the subjective norm
regarding online shopping?
RQ3. How do self-efficacy and facilitating conditions impact perceptions of behavioral
control regarding online shopping?

Introduction

RQ4. How do attitude, subjective norm and perceived behavioral control impact online
purchase intentions and consequently, online purchasing?
RQ5. To what extent, if any, is product type related to online purchase intention?

1.3 Contribution
The results from this study will make a positive contribution to the online consumer
behavior literature by providing a deeper understanding of consumer beliefs about
online shopping and how these impact attitude and intention to shop online. The
knowledge from this study will provide valuable information for retailers about the
relevant factors that drive consumers to shop online and the products and services that
are more likely to be purchased online. The information could help retailers adapt their
strategies to fit customer needs and attract and retain customers. From the marketing
point of view, gaining useful insight into online consumer behavior is fundamental and
the knowledge from this study could help create marketing strategies tailored to respond
to online consumer specific requirements and needs.
The figures and statistics show that e-commerce is full of opportunities for businesses of
any size and at the same time low barriers to entry are making the market more
competitive (Datamonitor, 2011), thus understanding online consumer behavior and
what drives them to shop online is crucial for any business that wants to be competitive.

1.4 Methodology and Delimitations


In order to fulfill the aim of the research, a survey was conducted online, where a link
led to a web-based questionnaire distributed by means of snowballing technique via
social networks. A sample of 138 respondents was generated. The survey results were
analyzed with SPSS (IBM Corp.) and SmartPLS (Ringle et al., 2005).
The respondents who completed the survey online were not restricted by country of
origin. Throughout this paper internet shopping, online shopping, and online
purchasing refer to the use of online stores or web retailers by consumers up until the
transactional stage of purchasing and logistics, hence, it did not include the behavior of
browsing for information.

Introduction

1.5 Structure
This paper is divided into seven sections: introduction, literature review, conceptual
model and hypotheses, methodology, data analysis and results, discussion, summary
and conclusions (Figure 1).
After the current introductory part, the literature review is presented in the second
section, where relevant theoretical models applied in the e-commerce literature are
discussed as well as prior research findings. The third section presents the conceptual
model and hypotheses. The fourth section outlines the research methodology, where
instrument development and data collection procedures are discussed. The fifth section
includes data analysis and results. The sixth section provides discussions concerning the
results. Finally, summary of findings, managerial implications, limitations and further
research are presented.

1. Introduction

2. Literature Review

3. Conceptual Model and


Hypotheses

4. Methodology

5. Data Analysis and Results

6. Discussion

7. Summary and Conclusion

Figure 1: Thesis Structure

Literature Review

2. LITERATURE REVIEW

This section consists of three main parts. The first part reviews major conceptual
research models from both the perspective of traditional consumer behavior and
information systems. The second part reviews research findings and extensions to the
major conceptual models in the literature. The third part reviews literature relating to
product classifications and research findings regarding purchase intention in the context
of different product types.

2.1 Online Consumer Behavior


Traditional offline consumer behavior and the drivers that take consumers into action
have been studied from different perspectives and disciplines like marketing,
psychology and the economic view, thus making the research of consumer behavior
quite rich and diverse.
However, the development of the internet and e-commerce have made an impact on
consumers lives, the way they transact and their decision making process. Online
consumers are using a computer and getting cues from a virtual environment, thus
information technology has great influence on online consumer behavior and the drivers
that motivate their actions, therefore creating differences between consumer online
behavior and traditional offline behavior (Pavlou, 2003, Pavlou and Fygenson, 2006).
Online consumer behavior has been studied from two widely accepted views:
consumer-oriented and technology-oriented. The findings in previous studies support
both views (Cheung et al., 2005, Lin, 2007, Monsuw et al., 2004, Taylor and Todd,
1995), furthermore the two views compliment and reinforce each other (Zhou et al.,
2007).The consumer-oriented view focuses on consumers salient beliefs about online
shopping and the influence of such beliefs on purchase channel selection (Zhou et al.,
2007). For example, online consumer behavior research has been examined from the
perspective of shopping orientations, shopping motivations, personal traits, internet
experience, among others (Monsuw et al., 2004, Zhou et al., 2007). On the other hand,
the technology-oriented view focuses on predicting consumer acceptance of online

Literature Review

shopping by studying web site design and content as well as system usability (Zhou et
al., 2007).

2.1.1 Major Research Models


In order to understand consumers online behavior and the determinants of online
purchasing, researchers have relied on the theory of reasoned action (TRA), technology
acceptance model (TAM), the theory of planned behavior (TPB), expectationconfirmation theory (ECT), innovation diffusion theory (IDT) and transaction cost
theory (TCT), however Cheung et al. (2005) found that in most research studies the
backbone for understanding online behavior was based mainly on TAM and TPB with
the other theories integrated into these research models.

2.1.2 The Theory of Reasoned Action (TRA)


A very well established theory from the social-psychology discipline, proposed by
Fishbein and Ajzen (1975), TRA postulates that an individuals behavior is determined
by the individuals behavioral intention. In TRA behavioral intention is a function of
two primary determinants: attitude towards the behavior, and subjective norm, i.e. an
individuals perception of normative social pressure to perform the behavior. Attitude
towards the behavior is measured by the combination of salient beliefs about the
behavior and an individuals evaluation of the outcome resulting from the behavior.
Additionally, subjective norm is measured by the combination of salient beliefs
regarding a relevant reference group opinion about the behavior and an individuals
motivation to comply with the reference group (Fishbein and Ajzen, 1975).
TRA is concerned with rational, volitional behaviors i.e. behaviors over which the
individual has control (Fishbein and Ajzen, 1975), nonetheless some researchers are
interested in situations where the behavior is not completely under the individuals
control, which has been the main reason for some of the critics to the model (Hansen et
al., 2004).
In the context of online consumer behavior, TRA has been used in empirical research,
for example, Kim and Kim (2004) explored online clothing purchase intention yielding
results with relative low predictive power, while Yoh et al. (2003) used TRA and
incorporated aspects of innovation diffusion theory, thereby increasing the explanatory
power of their research model.

Literature Review

2.1.3 The Technology Acceptance Model (TAM)


Developed by Davis (1989), TAM seeks to explain users adoption of information
technology. Based on TRA, TAM adopts the beliefattitudeintentionbehavior causal
relationship to explain the adoption of computer-based technologies in the workplace.
TAM postulates that behavioral intention to use a new technology will lead to actual
system use. Furthermore, behavioral intention to use a new technology is determined by
an individuals attitude toward using the new technology. The model posits that there
are two determinants that influence attitude toward using a new technology: perceived
usefulness (PU) and perceived ease of use (PEOU) (Davis, 1989). PU is defined as the
degree to which a person believes that using a particular system would enhance his or
her job performance and PEOU is defined as the degree to which a person believes
that using a particular system would be free of effort (Davis 1989, p. 320).
Additionally, an improved version of TAM

(Davis, 1993) suggests that PU is

influenced by PEOU and not the other way around, the rationale behind it is that easyto-use technology is more useful than hard-to-use technology and useful technology
may not necessarily be easy to use (Figure 2).

Figure 2: The Technology Acceptance Model


Source: Davis, 1993

TAM has been widely adopted in information systems (IS) research and it has been
successfully applied as a theoretical framework to predict online purchasing behavior
(Chen and Tan, 2004, Hernndez et al., 2010, Pavlou, 2003, Vijayasarathy, 2004),
moreover, researchers have applied TAM to predict online purchasing behavior in the
context of books (Gefen et al., 2003, Lin, 2007), clothing (Ha and Stoel, 2009, Tong,

Literature Review

2010) and financial services (Suh and Han, 2003). Although TAM has proven to have
valid constructs, the explanatory power of TAM has been enhanced by the aggregation
of other constructs into the research model, as the model has been seen as too
parsimonious by researchers (Venkatesh and Davis, 2000). One of the extensions of
TAM was proposed by Venkatesh and Davis (2000), referred as TAM2, the model
includes subjective norm as it was found to have significant influence on PU and
behavioral intention.

2.1.4 Theory of Planned Behavior (TPB)


Ajzens TPB is an extension of TRA (Fishbein and Ajzen, 1975). TPB takes into
account conditions where individuals do not have complete control over their behavior.
In addition to an individuals attitude towards the behavior and the subjective norm
proposed in TRA, TPB integrates perceived behavioral control (PBC) into the model.
PBC is defined as an individuals perception of how easy or difficult would be to carry
out a behavior (Ajzen, 1991).
TPB postulates that the actual behavior is determined by both, the behavioral intention
and PBC. Behavioral intention, in turn, is predicted by subjective norm, attitude toward
the behavior and PBC (

Figure 3).

Figure 3: The Theory of Planned Behavior


Source: Ajzen (1991)

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Literature Review

There are a number of studies that focus on understanding and predicting an


individuals intention to engage in a particular behavior in a variety of application areas
based on this popular and widely accepted model. Furthermore, empirical research has
shown the appropriateness of this model to understand consumers behavior in the
context of online shopping (George, 2004, Hansen et al., 2004). Hansen et al. (2004)
tested both TRA and TPB and found that TPB provided better explanation to online
consumer behavior than TRA did. However, like TAM, many researchers have added
constructs to the model to better reflect the characteristics of consumer online behavior
(Cheung et al., 2005). Pavlou and Fygenson (2006) tested one of the most
comprehensive TPB model extensions in a longitudinal study, which explored two
behaviors: getting information and actual product purchasing. The study findings
confirmed the significance of technology adoption variables (perceived usefulness and
perceived ease of use) for the prediction of e-commerce adoption; additional significant
constructs were trust, consumer skills, time and monetary resources, and product
characteristics (product diagnosticity and product value).

2.1.5 Decomposed Theory of Planned Behavior (DTPB)


Taylor and Todd (1995) introduced the idea that TPB beliefs can be decomposed into
multidimensional constructs. They argued that the aggregation of beliefs to create
measures of attitude, subjective norm and PBC, proposed by Ajzen and Fishbein, does
not identify specific factors that might predict a particular behavior. Moreover, Taylor
and Todd argue that the decomposed TPB model has advantages similar to TAM in
that it identifies specific salient beliefs that may influence IT usage (Taylor and Todd,
1995, p.147).
According to Taylor and Todd (1995), in the decomposed TPB (DTPB) attitudinal,
normative and control beliefs are decomposed into multidimensional beliefs constructs
(Figure 4). The decomposition of attitude beliefs has three characteristics of innovation
that influence behavioral intentions; these are based on the diffusion of innovation
theory proposed by Rogers (1995): relative advantage, complexity and compatibility.
Relative advantage can be defined as the degree to which an innovation provides
benefits which supersede those of its precursor and may incorporate factors such as
economic benefits, image enhancement, convenience and satisfaction (Rogers, 1995).
Considering that PU in TAM is the degree to which a person believes that using a

11

Literature Review
particular system would enhance his or her job performance (Davis 1989, p. 320),
Taylor and Todd (1995) suggest that PU, as defined in TAM, is equivalent to Rogers
relative advantage, since both constructs refer to a relative improvement in performance
and their measures have been operationalized in terms of their relative impact on
performance. According to Rogers (1995), complexity represents the degree to which an
innovation is perceived to be difficult to understand, learn or operate. Taylor and Todd
(1995) suggest that PEOU (the degree to which a person believes that using a particular
system would be free of effort) is analogous to Rogers complexity construct, although
in an opposite way. Compatibility refers to the degree to which the innovation fits with
the potential adopters existing values, previous experiences and current needs (Rogers,
1995).
Previous studies have suggested the decomposition of subjective norm into two
dimensions: interpersonal influence and external influence (Bhattacherjee, 2000, Hsu
and Chiu, 2004, Lin, 2007). Interpersonal influence refers to word-of-mouth influence
by friends, family, colleagues, while external influence is related to mass media reports,
experts opinions and other non-personal information.
Ajzen (1991) decomposed the PBC component into two dimensions: self-efficacy and
facilitating conditions. The dimension of self-efficacy is defined as an individuals
perception of his or her individual capabilities; in the context of online shopping it
refers to consumers self-assessment of his or her capabilities to shop online. The
second dimension, facilitating conditions, is concerned with external resource constrains
that may influence on engaging a particular behavior, such as time, money and
technology; in the context of online shopping the issue of technology constrains is
related to the availability of supporting internet equipment (Ajzen, 1991, Ajzen, 2002,
Lin, 2007).
DTPB has been successfully applied as research model in online shopping to predict
purchasing behavior, repurchase intention and as a model to understand the relation of
two behaviors such as getting information and actual online purchasing (Chen, 2009,
Hsu and Chiu, 2004, Lin, 2007, Pavlou and Fygenson, 2006).

12

Literature Review

Figure 4: The Decomposed Theory of Planned Behavior


Source:Lin (2007), Taylor and Todd (1995)

2.1.6 TAM vs. TPB vs. DTPB


It is important to understand the contribution and differences of each model to the
understanding of online consumer behavior. Although TAM and TPB derive from TRA,
there are differences between these models approach to understanding behavior.
Empirical tests comparing TAM, TPB and DTPB, showed that the three models achieve
similar fit to the data and that all three models are comparable in terms of their ability to
explain overall behavior, although subjective norm and PBC added slightly to the
prediction of behavior. However, the results also showed that DTPB had better
explanatory power over TPB and TAM, when behavioral intention is considered (Lin,
2007, Taylor and Todd, 1995).

13

Literature Review

It can be said that TAM is more parsimonious than TPB, thus it can be useful in
research focused on achieving an overall understanding of behavior (Lin, 2007). On the
other hand, DTPB sacrifices parsimony but provides better insight into the determinants
behavioral intention and actual behavior (Lin, 2007). Therefore, it is reasonable to
conclude that DTPB is appropriate for the purpose of the present study.

2.2 Model Extensions


Online consumer behavior literature demonstrates that TAM and TPB are valid, reliable
models for understanding online behavior. Nonetheless, researchers concur with the
idea that there are other relevant factors, besides the ones in the models, that help in
understanding online consumer behavior, thus many studies have extended TAM and
TPB by identifying major antecedents or mediator factors that have improved the
understanding of the determinants of online purchase intentions. Furthermore, there are
a number of research models that have taken elements of TAM and/or TPB and
integrated them with other theories like expectation-confirmation theory or innovation
diffusion theory. For example, Wen et al. (2011) extended TAM with constructs drawn
from expectation-confirmation theory and explored consumers intention to continue
shopping online.
Since online consumer behavior has been studied from either a consumer-oriented or a
technology-oriented perspective, the types of determinant factors in online purchase
intention identified in previous studies are diverse: demographic, personality traits,
online service quality, website quality, brand effect, shopping orientation, shopping
motivation, trust and perceived risk, internet experience, prior online shopping
experience and product types (Cheung et al., 2005, Monsuw et al., 2004, Zhou et al.,
2007).
Considering that the purpose of this study is to gain insight into the factors that
determine online consumer behavior and considering the parsimony principle, it is not
possible to include all possible factors in one research model. Furthermore, the literature
review suggests that there is one particular element that has great influence on online
purchase intentions: trust. In addition, another factor that seems to stand out in the
literature is consumers online experience, and finally, given that prior research shows
that product characteristics have an impact on online consumer behavior, and that few

14

Literature Review

studies have explored this factor, the relation between product types and online behavior
is also discussed in detailed.

2.2.1 Trust
Trust can be defined as the expectation that other individuals or companies with whom
one interacts will not take advantage of a dependence upon them. It is the belief that the
trusted party will behave in an ethical, dependable, and socially appropriate manner and
will fulfill their expected commitments. (Gefen et al., 2003, p. 308). According to
McKnight et al. (2002), trust is defined as the belief that allows consumers to willingly
become vulnerable to web retailers after having taken the retailers characteristics into
consideration. These definitions are consistent with the three trusting beliefs that are
used most often in literature (Bhattacherjee, 2000, McKnight et al., 2002, Pavlou, 2003,
Pavlou and Fygenson, 2006): competence, integrity and benevolence. Competence is
the belief in the trustees ability to perform as expected by the trustor. Integrity is the
belief that the trustee will be honest and keep its promises. Benevolence is the belief
that the trustee will not act opportunistically.
Trust is a central element in exchange relationships that are characterized by uncertainty
and vulnerability (McKnight et al., 2002). Prior research confirms that trust plays a
relevant role in consumer behavior, both online and offline. (Chen, 2009). However, the
importance of trust increases in the online context because perceptions of uncertainty
may be especially significant on an e-commerce environment, where certain cues that
evoke trust cannot be fully assessed (e.g. product characteristics, physical store, sales
person) (Jarvenpaa et al., 2000, Pavlou, 2003, Verhagen et al., 2006). Furthermore, lack
of trust has been credited as one of the main reasons preventing consumers from
engaging in e-commerce (Jarvenpaa et al., 2000, Monsuw et al., 2004).
Several researchers have demonstrated that trust positively influences attitudes towards
online purchasing (Chen and Tan, 2004, Delafrooz et al., 2011, Ha and Stoel, 2009,
Kim, 2012, Ling et al., 2010, Suh and Han, 2003, Zarmpou et al., 2012). For instance,
Jarvenpaa et al. (2000) empirically showed that trust has a significant effect on
consumers attitudes toward online purchasing in multiple cultures. Suh and Han (2003)
integrated trust with TAM constructs and found comparable results, namely, trust is a
significant factor influencing attitude toward online shopping Pavlou and Fygenson

15

Literature Review

(2006), as mentioned previously, conducted a longitudinal study using TPB, their


findings confirmed that trust influences online purchase intentions through attitude.
Some researchers have explored the direct impact of trust on purchase intentions. For
example Gefen et al. (2003), integrated trust with TAM and found that trust is as
influential as the two core TAM variables (perceived usefulness and perceived ease of
use), the results also support the importance of trust in purchase intentions among
potential customers and repeat customers, although repeat customer trust web retailers
more than potential customers. Pavlou (2003), integrated trust with a TRA-based model
and found that trust was the most influential predictor of intention and Wen et al. (2011)
found similar results regarding trust in the prediction of online repurchase intention.
In literature, trust has been studied from three major perspectives: online vendor
characteristics (merchandise value, order fulfillment, etc.), web site characteristics
(navigation, privacy, security, etc.), and customer characteristics (personality, online
expertise, etc.) (Benedicktus et al., 2010, Chiu et al., 2009). From the three perspectives,
research supports online vendor characteristics as the driver with the biggest impact on
trustworthiness (Benedicktus et al., 2010).
Trust and Risk perceptions
Risk perception refers to a consumers perceptions of the uncertainty and adverse
consequences of engaging in an activity (Hsu and Chiu, 2004).
Uncertainties related to online transactions create different risks, Pavlou (2003)
distinguished economic risk (monetary loses), seller performance risk (transaction
fulfillment), privacy risk (illegal disclosure of personal information) and security risk
(theft of credit card information). Bhatnagar et al. (2000) investigated how risk affects
online shopping, the study differentiated two types of risks: product category risk,
which is associated with the product itself, and financial risk, which is associated with
security concerning credit card information over the internet, the results showed that as
consumers become more knowledgeable, their perceptions of product and financial risks
decrease.
Barkhi et al. (2008) considered only one aspect of risk related to security (information
integrity) and combined elements of TAM and TPB to explain purchase decisions from
a online store, the empirical findings showed that PU, PBC and subjective norm impact

16

Literature Review

attitude toward purchasing from an online store, while security did not have a
significant effect.
Vijayasarathy (2004) extended TAM with subjective norm, privacy risk and security
risk in order to predict consumers online purchase intentions, the empirical test proved
all constructs significant but privacy concerns.
The concept of risk has been widely studied in literature from different perspectives, but
in general terms it can be said that trust and risk are interwoven (Jarvenpaa et al., 2000),
as trust is needed in uncertain situations and this means assuming risks and becoming
vulnerable to trusted parties. Thus, trust plays a central role in helping consumers
overcome perceptions of risk; this applies to the e-commerce context, when a web
retailer can be trusted to show competence, benevolence, and integrity, there is much
less risk involved in engaging and interacting with the web retailer since trust makes
consumers comfortable sharing personal information and making purchases. According
to Pavlou (2003), trust is one of the most effective tools for reducing uncertainty and
risks.
Several studies incorporated both perceived risk and trust in their research model while
exploring online consumer behavior, their findings support the significance of both
constructs, however, trust shows stronger significance in influencing attitude and
purchase intention (Chen, 2009, Jarvenpaa et al., 2000, Pavlou, 2003, Verhagen et al.,
2006). Furthermore, if a consumer decides to trust on a web retailer, the decision to
transact inseparably entails an interaction with its website interface, hence, it is fair to
say that trust in a web retailer implicitly encompasses trust in the integrity of the
transaction medium (i.e. web retailers infrastructure) (Pavlou, 2003). Web retailers can
affect trust in their infrastructure by facilitating encrypted transactions, installing
firewalls, using authentication mechanisms, and establishing privacy seals and
disclosures. By implementing these privacy and security mechanisms it can be argued
that both, seller performance risks, privacy and security risks can be decreased.
Based on the findings regarding trust and perceived risks and the fact that both
constructs are interwoven, the present study will focus on trust as a major determinant
of online consumer behavior, assuming that seller performance risk and privacy and
security risks are implicitly considered when a consumer decides to trust on a web
retailers competence, benevolence and integrity.

17

Literature Review

2.2.2 Online Experience


Online experience is an important element found in e-commerce literature, studies have
explored the role of consumers prior online shopping experience and its relationship
with purchase intentions.
Research shows that prior online shopping experience strongly influences purchase
intentions (Broekhuizen and Huizingh, 2009, Brown et al., 2003, Gefen et al., 2003,
Hernndez et al., 2010, Jayawardhena et al., 2007, Ling et al., 2010, So et al., 2005).The
findings suggest that previous experiences purchasing online assist in reducing
consumers uncertainties.
Potential and Repeat Customers
Based on their online shopping experience consumers can be differentiated. Gefen et al.
(2003) explored the importance of trust using TAM, their research showed that there are
two distinct populations: potential customers and repeat customers. Potential customers
initial trust on a web retailer is greatly influenced by their disposition to trust because
there is not much else on which to base this trust. For repeat customers, after
interactions with the web retailer, trust is influenced by the nature of the previous
interactions, in other words, their trust is influenced by prior experience; TAM
constructs (PEOU and PU) were more significant among repeat customers.
Hernndez et al. (2010) explored the moderating effects of experience using TAM as a
research model, they argued that the perceptions that induce individuals to purchase
online for the first time are not the same as those that induce repeat purchasing
behavior, their findings demonstrated that consumers perceptions evolve as they
acquire online shopping experience; the findings suggest that PEOU has a weaker effect
on experienced online shoppers while PU is stronger among this group.
Online purchasing behavior is influenced by different factors and these are perceived
differently between those consumers with prior online shopping experience, for instance
Broekhuizen and Huizingh (2009) found decreased perceptions of risks and more
concerns about time and effort saving among consumers with online purchasing
experience.

18

Literature Review

An empirical study by Jayawardhena et al. (2007) focusing on the relationships between


shopping orientations, purchase intention and prior experience found that although
shopping orientation had no significant effect, prior experience had a significant effect
on consumers propensity to shop online.
The role of experience has been proven significant from different perspectives, either
directly on purchase intention or its moderating effect on factors preceding purchase
intention; it is therefore evident from the literature review that potential customers and
repeat customers are differentiated, since the factors that influence their behavior are not
perceived equally among these two populations due to their online shopping experience.

2.2.3 Product Types


2.2.3.1 Online Product Classifications
Online shopping for a product or service incorporates different considerations, as
consumers may engage in different purchasing decision processes in different product
categories (Lowengart and Tractinsky, 2001).
In an attempt to better understand consumers, different approaches of classification for
products have been proposed. Nelson (1974) first classified products into search and
experience goods; this distinction is based on how product quality can be determined.
For search products, quality can be determined prior to purchase and use, these
products physical characteristics are known prior to purchase. For experience goods,
there is some uncertainty with respect to their quality or likelihood of physical
malfunctioning, thus they need to be personally tried and examined in order to assess
their quality. Since many products are not purely search or experience, Nelson later
generalized the classification and defined search goods as those whose full information
for dominant product attributes can be known prior to purchase; while experience goods
are those that are dominated by attributes that cannot be known prior purchase or when
acquiring information is more costly and/or difficult than direct product experience
(Kiang et al., 2011). Norton and Norton (1988) extended Nelsons classification by
dividing experience goods into durable and non-durable and by adding credence goods
to represent goods whose quality is hard to assess even after consumption.
One weakness of Nelsons classification scheme is that it does not take into account
product characteristics related to the online context, as nowadays it is possible for

19

Literature Review

consumers to download music and movie clips as well as demo software and games for
evaluation before purchase (Kiang et al., 2011).
Based on the special characteristics of the internet Peterson et al. (1997) proposed a
specially designed classification system for online products and services. The system
includes a three-dimension classification scheme that distinguishes online and offline
channel impacts: cost and frequency of purchase, value proposition, and degree of
differentiation. The cost and frequency dimension ranges from inexpensive and
frequently purchased to expensive and infrequently purchased goods. According to
Peterson et al. (1997), individuals tend to avoid purchasing inexpensive and frequently
purchased goods online.

The second dimension, value proposition, distinguishes

between tangible and intangible products. The third dimension, degree of differentiation
is related to the degree of product customization that creates competitive advantage. The
three dimensions are illustrated in Table 1.
Dimension 1

Dimension 2

Dimension 3

Low outlay, frequently


purchased goods

Value proposition tangible or


physical

Differentiation potential high

Value proposition intangible or


informational

Differentiation potential high

Value proposition tangible or


physical

Differentiation potential high

Value proposition intangible or


informational

Differentiation potential high

High outlay, infrequently


purchased goods

Differentiation potential low


Differentiation potential low
Differentiation potential low
Differentiation potential low

Table 1: Peterson et al. (1997) Product and Service Classification Grid


Source: Peterson et al. (1997)

There are several different product classifications and contributions in the context of
online shopping, for example De Figueiredo (2000), based on information asymmetry
between sellers and buyers in e-commerce, classified products into a spectrum of four
categories that include: commodity (its quality is easily determined by its description),
quasi-commodity, look and feel, and look and feel with variable quality. De Figueiredo
(2000) found that the biggest increase in e-commerce occurred in product categories
which are near the commodity product side of the spectrum.
Perceived risk is an important element in online shopping, as mentioned previously in
this paper, and the effect of perceived risk may be subject to product characteristics
(Zhou et al., 2007). Bhatnagar et al. (2000) found that product risk is higher for

20

Literature Review

technologically complex products like electronics and ego-related products like


sunglasses; furthermore, the study showed that risk perceptions increase with higher
expenditure levels and the effect of financial risk varies across product categories.
More recently, Kiang et al. (2011) integrated different approaches and proposed an
online product classification that distinguishes degree of standardization and brand
recognition, cost and purchase frequency, and digitizability (digital and physical).

2.2.3.2 Online Behavior and Product Types


Using Nelson (1974) classification scheme, several studies explored the influence of
product type on online behavior and found that consumers prefer to use the internet to
buy search products rather than experience products (Brown et al., 2003, Girard et al.,
2003, Korgaonkar et al., 2006, Lee and Tan, 2003, So et al., 2005).
Researchers have also studied online behavior and product types based on Peterson
(1997) classification. For instance, Vijayasarathy (2002) suggests that tangibility of the
product has a significant effect on intention to shop online but cost does not have an
effect. Studies concerning attitudes toward online shopping show that cost, purchase
frequency and product tangibility have an important influence on consumers attitude
towards online shopping (Keisidou et al., 2011, Lian and Lin, 2008). Furthermore, Ian
and Sui Meng (2000) found that product type influences consumer choice between
physical and virtual stores, the results suggest that products and services that have a low
outlay, are frequently purchased, have intangible value proposition, and relatively high
on differentiation are more likely to be purchased online.
Grounded on perceived risk in product purchase, Soopramanien et al. (2007) explored
shopping channel preference, the results showed that perceived product-specific risks of
purchasing products online do not reduce the intention to shop online for consumers
who have previously experienced online shopping. Lowengart and Tractinsky (2001)
found the existence of differences in terms of the risk dimensions considered by
consumers when buying high vs. low risk goods; the study found that when purchasing
experience goods online, aspects of uncertainty and risk were more salient than when
purchasing search goods.

21

Conceptual Model and Hypotheses

3. CONCEPTUAL MODEL AND HYPOTHESES

In this section, a conceptual model based on TPB is developed. The conceptual model
draws upon the idea credited to Taylor and Todd (1995) that TPB beliefs can be
decomposed into multidimensional constructs, additionally trust beliefs are integrated
into the model based on the literature review and empirical findings that support trust as
a major determinant of consumer online behavior; finally product type and its influence
on behavioral intention is incorporated in the analysis.

3.1 The Conceptual Model


TPB (Ajzen, 1991) postulates that behavior is determined by both, behavioral intention
and perceived behavioral control (PBC). Behavioral intention in turn, is determined by
attitude, subjective norm and PBC. The conceptual model extends TPB based on Taylor
and Todd (1995) multidimensional beliefs approach, where attitudinal, normative and
control beliefs are decomposed in order to provide a more specific understanding of
online consumer purchasing behavior. This decomposition approach provides several
advantages. First, it is noted by Taylor and Todd (1995) that it is unlikely that
antecedents of intention will be consistently related to monolithic belief structures
representing a variety of dimensions. Second, by decomposing beliefs, the relationships
between dimensions and intention will be clearer to understand. Third, decomposing
beliefs helps to overcome some of the disadvantages in operationalization. Finally,
gaining insight into specific beliefs makes the model more managerially relevant.

3.1.1 Behavioral Intention and Behavior


According to Ajzen (1991), behavioral intentions are motivational factors that capture
how much effort a person is willing to make in order to perform a behavior. TPB
suggests that behavioral intention is the most influential predictor of behavior. The
following hypothesis is therefore proposed:
H1: A consumers behavioral intention to purchase online positively affects
his/her actual online purchase (BI B).

22

Conceptual Model and Hypotheses

3.1.2 Attitude and Behavioral Intention


According to Ajzen (1987) there are two different kinds of attitudes: attitudes toward
objects and attitudes toward behaviors, based on this distinction, the present study
considers attitude toward a behavior; that is, online purchasing.
An individuals attitude toward online purchasing is defined as the individuals
favorable or unfavorable evaluation of using the internet to purchase products or
services from a web retailer. Attitude influences behavioral intentions (Fishbein and
Ajzen, 1975). This relationship has received considerable empirical support. Thus, the
following hypothesis is proposed:
H2: A consumers attitude toward online purchasing positively affects his/her
behavioral intention to purchase online (A BI).

3.1.3 Subjective Norm and Behavioral Intention


Subjective norm can be described as an individuals perceived social pressure to
perform or not to perform the behavior (Ajzen, 1991). Prior studies suggest that there is
a positive relationship between subjective norm and behavioral intention (Barkhi et al.,
2008, Bhattacherjee, 2000, Hansen et al., 2004, Vijayasarathy, 2004, Yoh et al., 2003).
Applied to e-commerce, subjective norm reflects a consumers perceptions of whether
online purchasing is accepted and encouraged by important referent others; these
perceptions influence online purchase intention. Therefore, the following hypothesis is
presented:
H3: A consumers subjective norm in relation to online purchasing positively
affects his/her behavioral intention to purchase online (SN BI).

3.1.4 Perceived Behavioral Control, Behavioral Intention and Behavior


Perceived behavioral control (PBC) is defined as an individuals perception of how easy
or difficult it would be to carry out the behavior. Furthermore, PBC denotes a degree of
control over the performance of the behavior and not the likelihood of a behavioral
outcome (Ajzen, 2002).
PBC plays a dual role in TPB, as it is a direct determinant of behavioral intention along
with attitude and subjective norm, and it is also a determinant of actual behavior along

23

Conceptual Model and Hypotheses

with intention. There is support for the dual role of PBC by Taylor and Todd (1995),
Lin (2007) and Pavlou and Fygenson (2006), who argued that neglecting PBC could
lead to an incomplete study of consumer online behavior. Hence, the following
hypotheses are proposed:
H4: A consumers PBC over online purchasing positively influences his/her
behavioral intention to purchase online (PBC BI).
H5: A consumers PBC over online purchasing positively influences his/her
actual online purchase (PBC B).

3.1.5 Decomposing Attitude


There is good evidence that TAM beliefs (PU and PEOU) significantly influence online
purchasing behavior (Gefen et al., 2003, Pavlou, 2003). Drawing upon innovation
diffusion theory proposed by Rogers (1995), three characteristics of innovation have
been found to influence IT adoption: relative advantage, complexity and compatibility
(Taylor and Todd, 1995). Rogers (1995) defined relative advantage as the degree to
which an innovation provides superior benefits to those of its precursor. The relative
advantage construct, as defined by Rogers, is considered to be analogous to perceived
usefulness in TAM. According to Rogers (1995), complexity represents the degree to
which an innovation is perceived to be difficult to understand, learn or operate.
Complexity is considered to be the opposite of perceived ease of use in TAM (Chen
and Tan, 2004, Lin, 2007, Taylor and Todd, 1995). Compatibility is defined as the
degree to which the innovation fits with the potential adopters values and needs
(Rogers, 1995). Taking into account that online shopping can be considered a service
innovation, and the empirical findings by Taylor and Todd (1995) in their DTPB model,
three attitudinal belief dimensions are proposed: perceived usefulness, perceived ease of
use and compatibility.
Based on the literature review, trust is an important determinant of online consumer
behavior. In addition to perceived usefulness, perceived ease of use and compatibility,
trust is proposed as an attitudinal belief in the conceptual model.

24

Conceptual Model and Hypotheses


Perceived Usefulness
PU is defined as the extent to which an individual believes that using a system will
enhance his or her performance (Davis, 1989).
In the e-commerce context, PU refers to the extent to which a consumer believes that
online purchasing would enhance his or her effectiveness in the purchase of product or
services. There is strong evidence that PU influences behavioral intention through
attitude (Barkhi et al., 2008, Chen and Tan, 2004, Ha and Stoel, 2009, Hernndez et al.,
2010, Pavlou and Fygenson, 2006, Suh and Han, 2003, Taylor and Todd, 1995,
Vijayasarathy, 2004). Therefore, the following hypothesis is proposed:
H6: A consumers perceived usefulness of online purchasing positively affects
his/her attitude toward online purchasing (PU A).
Perceived Ease of Use
PEOU is the extent to which an individual believes that using a system will be effortless
(Davis, 1989).
In terms of online shopping, PEOU can be defined as the extent to which a consumer
believes that online purchasing would be free of effort. Similar to PU, the role of PEOU
has been found to be significant in affecting behavioral intention through attitude
(Barkhi et al., 2008, Chen and Tan, 2004, Ha and Stoel, 2009, Hernndez et al., 2010,
Pavlou and Fygenson, 2006, Suh and Han, 2003, Taylor and Todd, 1995, Vijayasarathy,
2004). Consequently, the following hypothesis is proposed:
H7: A consumers perceived ease of use of online purchasing positively affects
his/her attitude toward online purchasing (PEOU A).
Compatibility
In the context of e-commerce, the compatibility construct is evaluated by assessing the
compatibility between a consumers needs and lifestyle with online shopping.
Prior research supports that compatibility with online purchasing influences consumers
attitude toward online shopping (Chen and Tan, 2004, Lin, 2007, Taylor and Todd,
1995). Hence, the following is proposed:

25

Conceptual Model and Hypotheses


H8: Compatibility between online purchasing and a consumers lifestyle and
needs positively affects his/her attitude toward online purchasing (COM A).
Trust
Trust can be defined as the belief that the trustee will act cooperatively to fulfill the
trustors expectations without exploiting its vulnerabilities (Pavlou and Fygenson,
2006). According to McKnight et al. (2002) trust is the belief that allows consumers to
willingly become vulnerable to web retailers after having taken the retailers
characteristics into consideration. These definitions imply that trust in both the web
retailer and online technologies underlie consumers' beliefs about the safety of shopping
online. The literature on e-commerce has focused on 3 dimensions of trust: competence
(web retailers ability to do what the consumer needs), benevolence (web retailers
motivation to act in the consumer's interests), and integrity (web retailers honesty and
promise keeping).
In order to place trust in a TPB-based model, trust must be defined with respect to a
behavior through a specified target, action, context and time frame (Ajzen, 2002). In
this case, the target of trust is the web retailer, the action is purchasing, the context is
the online environment, and the time frame is the window of time during which,
consumers are making their decisions.
In light of the literature review, consumers trust on a web retailer is a key factor that
influences consumers attitude toward online purchasing (Chen and Tan, 2004, George,
2004, Ha and Stoel, 2009, Jarvenpaa et al., 2000, Pavlou and Fygenson, 2006, Suh and
Han, 2003). According to Pavlou and Fygenson (2006), trust enables favorable
expectations that a web retailer will fulfill its promises and no harmful outcomes will
occur if a consumer engages in the behavior, thus creating positive attitudes. Therefore,
the following hypothesis is proposed:
H9: A consumers trust in a web retailer positively influences his/her attitude
toward online purchasing (TR A).

3.1.6 Decomposing Subjective Norm


Although the literature suggests a strong relationship between subjective norms and
online purchase intention, George (2004) and Pavlou and Fygenson (2006) did not find

26

Conceptual Model and Hypotheses

such relationship significant. Bhattacherjee (2000) suggested two forms of influence as


part of subjective norm: interpersonal influence and external influence. Interpersonal
influence refers to the influence of friends, family members, colleagues or superiors
known to the individual, while external influence refers to mass media reports, expert
opinions and other non personal information considered by the individual in performing
a behavior. A possible reason for George (2004) or Pavlou and Fygenson (2006) not
finding a link between subjective norm and online purchase intention may be related to
not including external influences in their studies. Therefore subjective norm is
decomposed into two components: interpersonal influence and external influence.
Interpersonal Influence
Within the online context, a consumers relevant referent groups include family and
friends, as the online purchasing behavior is not engaged in an organizational setting,
colleagues and superiors are not considered relevant in the present study. Interpersonal
influence can be described as a consumers belief that online purchasing is accepted,
encouraged and promoted by his/her social circle of influence. If social expectations
support online purchasing it is more likely that a consumer will shop online.
Accordingly, the following hypothesis is presented:
H10: A consumers perception of interpersonal influence is positively associated
with his/her subjective norm about online purchasing (II SN).
External Influence
External influences refer to any relevant factors which are not related in a personal way
to an individual. In the online setting, a consumer may consider mass media reports and
press reports where the online shopping is encouraged and promoted, thus the following
hypothesis is proposed:
H11: A consumers perception of external influence is positively associated with
his/her subjective norm about online purchasing (EI SN).

3.1.7 Decomposing Perceived Behavioral Control


According to Ajzen (2002) PBC is composed by beliefs associated to the resources and
opportunities needed to perform a behavior, this notion is represented by two
components: self-efficacy and facilitating conditions. The first component is related to

27

Conceptual Model and Hypotheses

the internal notion of perceived ability, while the second component is related to
external constrains. Prior research has found significant links between these constructs
and PBC, either using the construct controllability or facilitating conditions as
similar concepts (Chen, 2009, Hsu and Chiu, 2004, Lin, 2007, Pavlou and Fygenson,
2006, Taylor and Todd, 1995).
Self-Efficacy
Self-efficacy is defined as an individuals self-confidence in his/her ability to perform a
behavior. In the context of the present study, self-efficacy is defined as a consumers
self-assessment of his/her capabilities to shop online as proposed by Vijayasarathy
(2004).
It is expected that higher levels of self-efficacy will cause higher levels of PBC, thus the
following hypothesis is presented:
H12: A consumers positive self-efficacy positively influences his/her perceived
behavioral control over online purchasing (SE PBC).
Facilitating Conditions
Facilitating conditions reflect the availability of resources needed to engage in a
behavior. Online purchasing requires resources such as time and money, thus more
resources available to the consumer lead to higher PBC. Hence, the following
hypothesis is proposed:
H13: A consumers positive facilitating conditions positively influence his/her
perceived behavioral control over online purchasing (FC PBC).

3.1.8 Product Type and Purchase Intention


Several studies on online behavior focus on one product, for example books (Gefen et
al., 2003, Lin, 2007), clothing (Ha and Stoel, 2009, Hansen and Mller Jensen, 2009,
Kim and Kim, 2004, Tong, 2010, Kim et al., 2003, Yoh et al., 2003), groceries (Hansen
et al., 2004), financial services (McKechnie et al., 2006, Suh and Han, 2003) and car
insurance (Broekhuizen and Huizingh, 2009). However, e-commerce literature shows
that different product types play an important role in online consumer behavior, whether
on consumer shopping preferences or attitudes toward online purchasing (Cheema and

28

Conceptual Model and Hypotheses

Papatla, 2010, Girard et al., 2003, Ian and Sui Meng, 2000). Some researchers focusing
on online purchase determinants also explored the influence of product types. Brown et
al. (2003) and So et al. (2005) found significant results between search and experience
products and online purchase intentions; Cha (2011) compared the factors that facilitate
or hinder purchase intention of real and virtual items and found significant results; and
Vijayasarathy (2002) whose study was based on Peterson et al. (1997) product
classification, suggests that tangibility of the product has a significant effect on
intention to shop online.
This study employs two of the dimensions of the product classification proposed by
Peterson et al. (1997): cost and value proposition. The third dimension, namely degree
of differentiation is not included due to practical reasons. The first dimension can be
distinguished between low cost products (e.g. CDs/DVDs) and high cost products (e.g.
refrigerator). Value proposition is an indication of the tangibility of the product and can
also be differentiated at two levels, tangible (e.g. clothing) and intangible (e.g.
software). The combination of the two dimensions yields the following four product
types:
(1) Low cost, tangible
(2) Low cost, intangible
(3) High cost, tangible
(4) High cost, intangible
Based on the aforementioned literature review, the following hypothesis is presented:
H14: A consumers behavioral intention to purchase online differs by product
type (Product type BI).

3.2 Control Variables


In order to be able to assess the impact of the proposed hypotheses, the following
variables are controlled for in the present study: internet experience and shopping
enjoyment. These variables were selected because of their potential impact on online
purchasing as suggested by the extant literature.

29

Conceptual Model and Hypotheses


Internet experience
Past research found a relationship between consumers internet experience and online
consumer purchasing behavior (Bhatnagar et al., 2000, Yoh et al., 2003); although it is
important to note that some of the recent studies did not find the relationship significant
(Zhou et al., 2007). The effect of internet experience among consumers online behavior
tends to decrease as the penetration of the internet into their daily life increases. This is
confirmed by a recent study by Hernndez et al. (2010) that found that the effect of
internet experience decreases once individuals acquire more online shopping
experience. A consumers experience involving the use internet may have generated
knowledge that might reinforce the consumers willingness to shop online. Hence this
study controls for the role of consumers internet experience in terms the time they
dedicate to its use, frequency and level of importance they attribute to it.
Shopping enjoyment
Researchers have investigated the role of shopping orientation on online consumer
purchasing behavior, with mixed results. Hansen and Mller Jensen (2009) and Seock
and Bailey (2008) found a significant relationship between shopping orientations and
online purchase behavior. Research by Girard et al. (2003) and Brown et al. (2003)
suggest that multiple orientations exist among the population of internet users who have
previously made purchases via the Internet, however, the studies did not find a
significant relationship with purchase intention. One common orientation identified by
these studies is shopping enjoyment, which refers to consumers whose motivation is the
pleasure of shopping itself, for these people, shopping is a recreational pursuit. Hence,
shopping enjoyment in general is included as control variable.
Figure 5 illustrates the conceptual model and presents the hypotheses proposed in this
study. Table 2 summarizes the conceptual models constructs and their definitions.

30

Conceptual Model and Hypotheses

Figure 5: The Conceptual Model

31

Conceptual Model and Hypotheses

Construct

Definition

Reference

Perceived
Usefulness

The degree to which a person believes that using a particular


system would enhance his or her job performance

Davis, 1989

Perceived
Ease of Use

The degree to which a person believes that using a particular


system would be free of effort

Davis, 1989

Compatibility

The degree to which an innovation is perceived as being


consistent with existing values, needs, and past experience of
potential adopters

Rogers, 1995

Trust
Interpersonal
Influence
External
Influence
Self-efficacy
Facilitating
Conditions
Behavioral
Intention
Attitude
Subjective
Norm
Perceived
Behavioral
Control

The belief that the trustee will act cooperatively to fulfill the
trustors expectations without exploiting its vulnerabilities
Influence by friends, family members, colleagues, superiors,
and experienced individuals known to the potential adopter
Mass media reports, expert opinions, and other non-personal
information considered by individuals in performing a behavior
An individual's self-confidence in his/her ability to perform a
behavior
Reflects the availability of resources needed to engage in a
behavior, such as time, money or other specialized resources
Motivational factors that capture how much effort a person is
willing to make in order to perform a behavior
An individuals evaluation of the outcome resulting from
performing a behavior
An individuals perception of normative social pressure to perform
a behavior
An individuals self-assessment of his or her capabilities to
perform a behavior

Table 2: Construct Definitions

Pavlou and
Fygenson, 2006
Bhattacherjee,
2000
Bhattacherjee,
2000
Taylor and
Todd, 1995
Taylor and
Todd, 1995
Ajzen, 1991
Ajzen, 1991
Ajzen, 1991
Ajzen, 1991

32

Methodology

4. METHODOLOGY

This section presents the research methodology of this study. First, the research
approach is outlined; this is followed by instrument development, sampling and data
collection method.

4.1 Research Approach


In order to find the determinants of consumers online purchase behavior, the present
study proposes a conceptual model which is based on current literature and builds upon
empirically tested findings; therefore the research and data collection takes a
quantitative approach. A quantitative approach allows the generalization to a wider
segment of population, furthermore, it provides a basis for analysis and interpretation
(Adams et al., 2007).
An online survey was developed to validate the conceptual model and the proposed
research hypotheses, a method that is suitable for collecting data from large
geographical areas, contact a large amount of people and collect statistically significant
data. (Adams et al., 2007). The survey was conducted using a structured and
standardized questionnaire.
The unit of analysis includes individuals who had at least purchased online once in the
last twelve months at the moment of data collection. The reasoning behind this choice
lies on the findings on e-commerce literature that suggest two populations, potential and
repeat customers, based on their online shopping experience.

4.2 Instrument Development


A questionnaire was developed in order to gather in-depth information for the
measurement of the conceptual models constructs: Perceived Usefulness (PU),
Perceived Ease of Use (PEOU), Compatibility (COM), Trust (TR), Interpersonal
Influence (II), External Influence (EI), Self-efficacy (SE), Facilitating Conditions (FC),
and TPB constructs: Attitude (A), Subjective Norm (SN), Perceived Behavioral Control
(PBC), Behavioral Intention (BI) and Behavior (B). The items used to operationalize
constructs are based on literature review and have been validated in previous studies.

33

Methodology

Table 3 summarizes the constructs and their respective sources and Appendix 1 presents
the detailed item information.
Constructs

Items

Sources

Internet Experience (INT)

Barkhi et al. (2008)

Shopping Enjoyment (ENJ)

Jarvenpaa et al. (2000)

Perceived Usefulness (PU)

Lin (2007) adapted from Davis (1989)

Perceived Ease of Use (PEOU)

Lin (2007) adapted from Davis (1989)

Compatibility (COM)

Vijayasarathy (2004) adapted from Taylor and Todd (1995)

Trust (TR)

Gefen et al. (2003)

Interpersonal Influence (II)

Bhattacherjee (2000)

External Influence (EI)

Bhattacherjee (2000)

Subjective Norm (SN)

Pavlou and Fygenson (2006)

Self-Efficacy (SE)

Lin (2007) adapted from Taylor and Todd (1995)

Facilitating Conditions (FC)

Lin (2007) adapted from Taylor and Todd (1995)

Perceived Behavioral
Control (PBC)

Pavlou and Fygenson (2006)

Attitude (A)

Pavlou and Fygenson (2006)

Behavioral Intention (BI)

Pavlou and Fygenson (2006)

Table 3: Sources of Questionnaire Items

The questionnaire was developed in English. The approach to testing the conceptual
model was based on the one used by Taylor and Todd (1995) to test a TPB model with
decomposed belief structures.
In order to gather the right group of respondents for the purpose of the study, the
questionnaire was established to start with a screening question: During the last 12
months, have you purchased any product/service using the internet?, those individuals
who answered no were excluded because they did not fit the target population.
Self-report method is used in this study where respondents are asked to report their
previous purchase experiences and behaviors. Respondents are asked to indicate which
products/services they have purchased online; they had the option to mark up to three
products/services. Actual purchasing behavior was measured with a single item, Please
indicate how many times you have purchased each product/service in the last 12
months, where a 7-point Likert scale included: Once, 2-3 times a year, 4-5 times a
year, once per 1 or 2 months, 2 times a month, 3 times a month, more than 3 times a
month. Prior research measured actual behavior in a similar way by asking purchase
frequency during a determined period of time with a Likert scale either indicating

34

Methodology
number of times purchased or frequency ranging from seldom to often (Barkhi et
al., 2008, Chen and Tan, 2004, Pavlou, 2003, Suh and Han, 2003).
At this point, respondents are requested to choose one product/service (from those
selected in the first part of the survey) in order to answer the rest of the questionnaire
with that product/service in mind. A program replaced the name of the product/service
selected by the respondent as this approach ensured that the respondent was consistent
in his or her answers to the questions.
All measurements used 7-point Likert scales ranging from strongly disagree to
strongly agree, except for item INT1 regarding internet experience with a scale
ranging from limited to significant, item INT2 where respondents indicated how
many hours per week they use the internet 2, the scale for item SE2 ranged from
difficult to easy and attitude 7-point Likert scales ranging from bad idea to good
idea, foolish idea to wise idea, dislike to like and unpleasant to pleasant.
The questionnaires last section included demographic questions such as gender, age,
country, education and marital status.

4.3 Sampling and Data Collection


Data were obtained through social networking sites, mainly Facebook, using the snowball
sampling technique, which is a special type of non-probability sampling where a link is sent
to acquaintances, who are asked to answer and share the web-based questionnaire to other
people they know and so forth. Appendix 2 shows the web-based questionnaire.
A pilot study was conducted (n=15) to test the web-based questionnaire and examine
questions and wording. The feedback from respondents was used to make the decision to
modify the question regarding products/services purchased during the last twelve months,
since the question included other as an additional option where respondents could type
the missing product/service themselves. It was noticed that some answers were sentences
rather than one word. Considering that a program replaced the name of the product later in
all questions, as explained previously, this would make the questions confusing. Hence, the
option other was removed.

Based on the data set, INT2 was later transformed into groups, using SPSS -Recode variable functionforming a 7-point Likert scale in order to execute the analysis.

35

Methodology

During data collection all respondents participated voluntarily, however it is important to


mention that halfway the collection process, it was necessary to offer an incentive in view
of the fact that participation was considerably reduced. The incentive consisted of a gift
certificate for the iTunes store with a value of 200 Kr. for the winner of a draw among all of
those who filled in the complete questionnaire.

36

Data Analysis and Results

5. DATA ANALYSIS AND RESULTS

This section presents data analysis and discusses the results. Sample characteristics are
presented first, followed by measurement validation. Then model assessment, path analysis
and hypotheses testing are provided. Finally, the results are discussed.

5.1 Data Analysis


SPSS version 19.0 was used to perform some of the preliminary analysis, data screening
prior model estimation and analysis. In order to estimate the structural equation model
(SEM), Partial Least Square (PLS) method was chosen and the software application
used was SmartPLS 2.0. (Ringle et al., 2005).
PLS provides a powerful method for assessing a structural model and can be used not
only for theory confirmation, but also for suggesting where relationships might or might
not exist (Hair et al., 2012). Compared to covariance-based SEM, PLS has minimal
demands on measurement scales, sample size and residual distributions (Chin, 2010).
Furthermore, PLS has become a very popular technique in research, as its use has
increased over time (Ringle et al., 2012). Unlike covariance-based SEM, PLS focuses on
maximizing the variance of the dependent variables explained by the independent ones
instead of reproducing the empirical covariance matrix (Haenlein and Kaplan, 2004).
PLS uses latent variable proxies which are linear composites of the associated observed
variables, this calculation is similar to principal component analysis for reflective
indicators or regression analysis for formative indicators. In PLS path modeling,
parameter estimation is accomplished through a multistage algorithm, the various stages
involve a sequence of regressions in terms of weight vectors, with iteration until
convergence is achieved on a final set of weights (Haenlein and Kaplan, 2004).
In terms of sample size, due to the partial nature of the estimation procedure where only
a portion of the model is involved at any one time, only the part that requires the largest
multiple regression becomes important (Chin, 1998). According to Chin (1998), using a
regression heuristic of ten cases per predictor for the minimum sample size in PLS
analysis the sample size is determined by (a) the block with the largest number of
formative indicators or (b) the dependent latent variable with the largest number of

37

Data Analysis and Results

independent latent variables impacting it. The conceptual model proposed in this study
has no formative indicators and the largest number of independent latent variables that
impact the same dependent variable is four. Thus, the minimum required sample size for
this study is 40. The number of usable responses collected in the present study is 138 ,
therefore satisfying the minimum sample requirement in PLS analysis. For the control

variables, the approach by Liang et al. (2007) was used, where the control variables are
connected with the independent variable on SEM PLS analysis.

5.2 Sample Characteristics


After eliminating 15 non-usable responses due to significant missing data and 12 responses
representing those who had not purchased products online, 138 final responses were usable
for data analysis.

Gender
Age

Education

Marital status

Hours using the


internet (per week)

Continent

Male
Female
<21
21-29
30-39
40-49
50-59
60 and over
No formal schooling
Primary school
High school
College/University
Post-graduate degree
Single
Married
Separated
Divorced
In a relationship
<10
11-20
21-30
31-40
41-50
51-60
>61
Europe
North America
South America
Other

Table 4: Sample Characteristics

Frequency

Percent

75
63
2
30
49
34
14
9
1
3
13
77
44
23
71
5
3
36
35
41
26
16
7
7
6
98
13
13
14

54
46
1
22
36
25
10
7
1
2
9
56
32
17
51
4
2
26
25
30
19
12
5
5
4
71
9
9
10

38

Data Analysis and Results

The sample collected is relatively balanced in terms of gender representation with 54


percent males and 46 percent females. Most of the participants are well educated adults
between 21 and 49 years of age (mean age 38), who are either in a relationship or married.
The respondents are very familiar with the use of internet as most spend up to 40 hours
using the internet on a week. Most of the respondents come from European countries,

mainly Denmark, with the rest of the sample including North America, South America
and other countries from Asia. Table 4 summarizes some of the demographic attributes
of the respondents.
Since a screening question was used, all respondents have at least purchased online once
(during the last twelve months at the time of the survey), however it appears as most of
them have experience shopping online as the majority indicated three products and/or
services. Among the most frequently purchased items are travel services, clothing and
books. Table 5 presents the products and services purchased online by the respondents.
Products/services purchased online Frequency Percent
Travel
Clothing
Books
Tickets
Software
Electronics
CDs/DVDs
Personal care products
Sports equipment
Subscriptions
Appliances
Furniture
TOTAL

66
52
51
47
34
34
24
21
13
11
6
4
363

18
14
14
13
9
9
7
6
4
3
2
1
100

Table 5: Products and Services Purchased Online

In addition, respondents were asked to select one product/service to answer the


questionnaire in order to keep their answers coherent and consistent. Table 6 shows the
products and services selected by the respondents. Travel, clothing and books are
among the top three products selected and also the most frequently purchased online
(See Appendix 3: Purchase Frequencies).

39

Data Analysis and Results

Frequency

Percent

Travel

40

29

Clothing

22

16

Books

20

14

Tickets

20

14

Electronics

13

Software

CDs/DVDs

Sports equipment

Personal care products

Subscriptions

Appliances

Table 6: Products and Services Selected to Answer the Survey

By using the snowball sampling technique there is a risk that the sample is not
representative of the population of online shoppers. Therefore non-response bias was
assessed by comparing the studys respondents with online shoppers in previous studies
that did not use student populations as their only target in the following dimensions:
gender, age and education (Aljukhadar and Senecal, 2011, Broekhuizen and Huizingh,
2009, Burkolter and Kluge, 2011, Verhagen et al., 2006, Vijayasarathy, 2002). In prior
studies gender distribution tends to be balanced, additionally, online shoppers tend to be
well educated and with a mean age of 33 years. Gender distribution and education in the
sample appear to be similar to prior studies samples; however respondents are slightly
older in the present study, t-tests showed no significant differences (p > 0.05). Since
half the sample comes from Denmark; current Danish online consumer demographics
were considered. According to a publication by Posten Norden Distanshandeln i Norden
2010 (Distance Trade in the Nordic Countries in 2010) a typical Danish online
consumer is a man between 30 and 49 years old (Euromonitor International, 2012c). In
addition, according to Danmarks Statistik, 41 percent of online shoppers are highly
educated and 51 percent of shoppers are men; the only parameter that differs slightly
with this studys sample is age, namely the younger 16 to 19 group, which represents 18
percent of online shoppers according to Danmarks Statistik (Appendix 4). Based on
these results, the sample appears to be representative of the population, although the
effect of non-response bias cannot be discounted entirely.

40

Data Analysis and Results

5.3 PLS Analysis


5.3.1 Measurement Model Results
The first step in order to present the results of PLS analysis is to assess the reliability
and validity of the measurement items or indicators, as it is important to determine that
the measures represent the constructs. This section provides an evaluation on how
accurate the measures are and also their convergent and discriminant validities.

5.3.1.1 Reliability
All constructs consist of more than one item, except actual behavior (B), which was
measured by purchase frequency of the respondents selected product/service.
Cronbachs alpha was used to assess internal consistency, since it provides an estimate
for the reliability based on the indicator intercorrelations (Henseler et al., 2009). Alpha
coefficients range from 0 to 1 where higher coefficients indicate higher reliability. The
accepted value of Cronbachs alpha is 0.70, whereas a value below 0.6 indicates a lack
of reliability (Nunnally et al., 1967). Table 7 shows that all constructs present alpha
coefficients higher than 0.70, except for trust (TR) with 0.68 and internet experience
(INT) with 0.57.
# of
Indicators

Composite
Reliability

Cronbachs
Alpha

Attitude (A)
Behavior (B)

4
1

0.91
1.00

0.87
1.00

Behavioral Intention (BI)

0.97

0.93

Compatibility (COM)
External Influence (EI)

3
3

0.92
0.88

0.87
0.79

Enjoyment (ENJ)

0.91

0.86

Facilitating Conditions (FC)

0.92

0.82

Interpersonal Influence (II)

0.92

0.83

Internet experience (INT)


Perceived Behavioral Control (PBC)
Perceived Ease of Use (PEOU)

3
2
3

0.75
0.91
0.93

0.57
0.81
0.89

Perceived Usefulness (PU)

0.86

0.74

Self-Efficacy (SE)

0.91

0.81

Subjective Norm (SN)

0.93

0.86

Trust (TR)

0.82

0.68

Construct

Table 7: Reliability Results Composite Reliability and Cronbachs Alpha

Cronbachs alpha tends to provide an underestimation of the internal consistency


(Henseler et al., 2009), therefore it is also appropriate to apply the composite reliability

41

Data Analysis and Results

measure. The composite reliability takes into account that indicators have different
loadings, and can be interpreted in the same way as Cronbachs alpha. The accepted
value for composite reliability is 0.70 or higher (Henseler et al., 2009). The composite
reliability values are shown on Table 7, the values for all constructs are above the cutoff
level. The averaged composite reliability for all constructs is 0.90 showing high
reliability. Therefore, it can be said that the measurement instrument of this study is
reliable.

5.3.1.2 Validity
For the assessment of validity, convergent and discriminant validities are used.
Convergent validity means that a set of indicators represents one and the same
underlying construct, which can be analyzed through their unidimensionality.
Discriminant validity is a complementary concept, meaning that each indicator should
not have a stronger connection with constructs other than the one it attempts to reflect.
Construct

AVE

Attitude (A)

0.72

Behavior (B)

1.00

Behavioral Intention (BI)

0.93

Compatibility (COM)

0.80

External Influence (EI)

0.71

Enjoyment (ENJ)

0.78

Facilitating Conditions (FC)

0.85

Interpersonal Influence (II)

0.85

Internet experience (INT)

0.51

Perceived Behavioral Control (PBC)

0.84

Perceived Ease of Use (PEOU)

0.82

Perceived Usefulness (PU)

0.67

Self-Efficacy (SE)

0.84

Subjective Norm (SN)

0.88

Trust (TR)

0.61

Table 8: Validity Results AVE

Fornell and Larcker (1981) suggest using the average variance extracted (AVE) as a
criterion of convergent validity. AVE measures the amount of variance that a latent
variable captures from its indicators relative to the amount due to measurement error.
(Chin, 2010). An AVE value of at least 0.5 indicates sufficient convergent validity,
meaning that a latent variable is able to explain more than half of the variance of its

42

Data Analysis and Results

indicators on average (Henseler et al., 2009). AVE is only applicable for mode A
(outward-directed) reflective constructs or latent variables. The entire measurement
instrument in the present study is reflective, thus AVE is applicable to all constructs.
AVE values are shown in Table 8, all values are greater than 0.50, achieving convergent
validity.
There are two measures of discriminant validity: The Fornell-Larcker criterion and the
cross loadings (Henseler et al., 2009). The Fornell-Larcker criterion indicates that a
latent variable shares more variance with its assigned indicators than with any other
latent variable, in other words, the AVE of each latent variable should be greater than
the latent variables highest squared correlation with any other latent variable. The
second measure of discriminant validity takes into account the loading of each indicator,
where it is expected to be greater than all of its cross-loadings (Henseler et al., 2009).
Although the Fornell-Larcker criterion assesses discriminant validity on the construct
level, the cross loadings allow this evaluation on the indicator level (Chin, 2010). The
results of both Fornell-Larcker criterion (Appendix 6: Latent Variables Squared
Correlations and AVE) and cross loadings (Appendix 7: Cross Loadings) suggest that
all construct measurements have adequate discriminant validities.

5.3.2 Structural Model Results


Having tested for reliability and validity of the measures, the next step is to focus on the
structural model. PLS analysis implies great emphasis on variance explained as well as
establishing the significance of all path estimates.
PLS algorithm was executed on SmartPLS using 300 as maximum number of iterations,
path weighting scheme was selected since Haenlein and Kaplan (2004) suggest that the
choice between the different weighting schemes for determining inner model proxies
has only a minor impact on the final results.

5.3.2.1 Variance Explanation


The explanation power of the structural model is assessed by the R2 values of the
endogenous constructs, these values represent the amount of variance in the construct
that is explained by the model (Tabachnick and Fidell, 2007).

43

Data Analysis and Results


Chin (1998) describes R2 values of 0.67, 0.33, and 0.19 in PLS path models as
substantial, moderate, and weak, respectively. Table 9 summarizes the R2 values
obtained, where attitude, purchase intention, PBC and subjective norm show moderate
values, and behavior (i.e. online purchasing) a rather weak value. In other words, the
model is able to explain 10 percent of the variance in online purchasing and 38 percent
of the variance in behavioral intention.
Construct

R2

Attitude (A)

0.52

Behavior (B)

0.10

Behavioral Intention (BI)

0.38

Perceived Behavioral Control (PBC)

0.66

Subjective Norm (SN)

0.47

Table 9: Variance Explanation Results

5.3.2.2 Path Analysis


The path coefficients of the PLS structural model provide a validation of the
theoretically assumed relationships between constructs (Adams et al., 2007). The
individual path coefficients measure the magnitude of the causal relation between
constructs, they can be interpreted as standardized beta coefficients of ordinary least
squares regressions (Henseler et al., 2009). The results of the structural path analysis are
depicted in Appendix 8, in which PLS path coefficients and indicators loadings are
shown. All path coefficients are positive, except for the path PBC to behavior (B); the
negative path coefficient indicates the causal relation is negative. Tests of the path
significances in the model are provided in the Hypotheses testing section.

5.3.2.3 Effect Size


Henseler et al. (2009) recommend that all indirect effects of a particular latent variable
on another variable should be evaluated, considering that the standardized inner path
model coefficients decline with an increased number of indirect relationships. In order
to evaluate the effect size in the path model, Cohens (1988)

was calculated as the

increase in R2 relative to the proportion of variance of the endogenous latent variable


that remains unexplained (Henseler et al., 2009):

44

Data Analysis and Results

According to Cohen (1988) values of 0.02, 0.15, and 0.35 can be interpreted as small,
medium, and large effects at the structural level, respectively.
The

values were calculated manually for each latent variable. Table 10 presents the

results of effect size; all effects on behavior are small, attitude has a medium effect on
behavioral intention, PEOU appears to have a medium effect on attitude while the rest
of variables have a small effect on attitude. All effects on subjective norm and PBC are
above 0.15, representing medium effects.
Effects

Effects on Behavior:
Behavioral Intention

0.03

PBC

0.01

Enjoyment

0.03

Internet experience

0.01

Effects on Behavioral Intention:


Attitude

0.23

Subjective Norm

0.02

PBC

0.04

Effects on Attitude:
Trust

0.01

Perceived Usefulness

0.04

Perceived Ease of Use

0.20

Compatibility

0.04

Effects on Subjective Norm:


Interpersonal influence

0.22

External influence

0.16

Effects on PBC:
Self-efficacy

0.24

Facilitating Conditions

0.39

Table 10: Effect Size Results

5.3.2.4 Predictive Relevance


Stone-Geissers Q2 (Stone, 1974; Geisser, 1975) is used to assess the models capability
to predict. The Stone-Geisser criterion postulates that the model must be able to provide
a prediction of the endogenous latent variables indicators (Henseler et al., 2009). The
predictive relevance can be measured using blindfolding procedures (Tenenhaus et al.,
2005), which can only be applied to endogenous latent variables that have a reflective
measure. The blindfolding procedure omits a part of the data for a particular block of
indicators and then attempts to estimate the omitted part using the estimated parameters

45

Data Analysis and Results


(Chin, 2010). Basically Q2 represents a measure of how well observed values are
reconstructed by the model and its parameter estimates. Q2 values above 0 indicate that
the observed values are well reconstructed and that the model has predictive relevance
(Hair et al., 2012).
Q2 was obtained using the cross-validated redundancy measure as suggested by Chin
(1998) by running the blindfolding procedure on SmartPLS with omission distance 7 for
each latent variable. The choice of omission distance was based on Chin (2010).
The results listed on Table 11 show that all endogenous latent variables have predictive
relevancy as all values are above 0.
Construct

Q2

Attitude (A)

0.35
0.09
0.36
0.55
0.41

Behavior (B)
Behavioral Intention (BI)
Perceived Behavioral Control (PBC)
Subjective Norm (SN)

Table 11: Predictive Relevance Results

5.4 Hypotheses Testing


5.4.1 Bootstrapping
Bootstrap procedure was used to estimate the significance of path coefficients i.e.
hypotheses H1-H13 in the model. Bootstrapping provides an estimate of the shape,
spread, and bias of the sampling distribution of a specific statistic (Adams et al., 2007).
Bootstrap procedure creates a number of samples where each bootstrap sample has the
same number of cases as the original sample; bootstrap samples are created by
randomly drawing cases with replacement from the original sample and PLS estimates
the path model for each bootstrap sample. Then, the obtained path model coefficients
form a bootstrap distribution, this information allows a students t-test for the
significance of the path model relationships (Henseler et al., 2009).
In this study, bootstrap was performed with 138 cases and 500 samples. The
significance of path relationships was determined with one tail t-test distribution with
500 degrees of freedom. One tail t-test is used because all hypotheses are directional in
this study. According to one tail t-test (df = 500), 95 percent significance level or p <

46

Data Analysis and Results

0.05 requires t-value > 1.645. Appendix 9 shows the graphical bootstrap output with tvalue for each path and Table 12 summarizes the results.
Hypotheses

Path
Coeff.

T Statistics

H1:

Behavioral Intention Behavior

0.193

2.553**

H2:

Attitude Behavioral Intention

0.440

4.963**

H3:

Subjective Norm Behavioral Intention

0.126

1.321

H4:

PBC Behavioral Intention

0.194

2.260*

H5:

PBC Behavior

-0.078

1.000

H6:

Perceived Usefulness Attitude

0.180

2.051*

H7:

Perceived Ease of Use Attitude

0.404

4.608**

H8:

Compatibility Attitude

0.193

1.986*

H9:

Trust Attitude

0.111

1.266

H10:

Interpersonal Influence Subjective Norm

0.421

4.238**

H11:

External Influence Subjective Norm

0.353

4.210**

H12:

Self-efficacy PBC

0.394

3.685**

H13:

Facilitating Conditions PBC

0.491

5.279**

Note: one-tail

* Significant at .05 level

** Significant at .01 level

Table 12: Tests of PLS Paths with Bootstrap

The results support the proposed relationships between behavioral intention and
behavior (H1) (t = 2.553, p < 0.01); attitude and behavioral intention (H2) (t = 4.963, p
< 0.01); perceived behavioral control and behavioral intention (H4) (t = 2.260, p <
0.05); perceived usefulness and attitude (H6) (t = 2.051, p < 0.05); perceived ease of use
and attitude (H7) (t = 4.608, p < 0.01); compatibility and attitude (H8) (t = 1.986, p <
0.05); interpersonal influence and subjective norm (H10) (t = 4.238, p < 0.01); external
influence and subjective norm (H11) (t = 4.210, p < 0.01); self-efficacy and perceived
behavioral control (H12) (t = 3.685, p < 0.01); facilitating conditions and perceived
behavioral control (H13) (t = 5.279, p < 0.01). The results do not support the proposed
relationships between subjective norm and behavioral intention (H3) (t = 1.321, p >
0.05); perceived behavioral control and behavior (H5) (t = 1.000, p > 0.05); trust and
attitude (H9) (t = 1.266, p > 0.05).
With regard to the control variables included in the model, shopping enjoyment (ENJ) is
significantly related with the behavior, namely online purchasing (t = 1.948, p < 0.05)
while internet experience (INT) is not significantly related. The total effect size of both
control variables is small, only 0.05; this is also the case if behavioral intention is used
as the focal variable for the control variables.

47

Data Analysis and Results

5.4.2 One-Way ANOVA


Since analysis of variance (ANOVA) is a method which determines differences between
groups consisting of different population means (Tabachnick and Fidell, 2007), one-way

ANOVA was conducted to test if behavioral intention differs by product type (H14).
In order to obtain the dependent variable behavioral intention, measures of behavioral
intention BI1 and BI2 were transformed into one variable using SPSS Transform
Compute variable Mean function.
The products selected by the respondents were grouped with SPSS Variable
transformation function -recode into different variables. Products were grouped according
to the classification proposed by Peterson et al. (1997), Table 13 illustrates the results.
Product Classification

Product/Service

Frequency

Low cost, intangible

Entertainment tickets,
subscriptions

22

High cost, intangible

Software, travel

48

Low cost, tangible

Books, CDs/DVDs, sports


equipment, clothing

54

High cost, tangible

Electronics, appliances

14

Table 13: Products and Services Classification in This Study

5.4.2.1 ANOVA Assumptions


In order to be able to perform ANOVA analysis, assumptions of normal distribution and
homogeneity of variances were tested for the dependent variable behavioral intention.
Normal Distribution
The dependant variable behavioral intention was screened for normal distribution. The
value of skewness was -1.650 and for kurtosis 2.366. The values are out of the interval
(-1+1), thus a normal distribution cannot be assumed, as a large deviation from
normality leads to hypothesis test conclusions that are too liberal and a decrease in
power and efficiency (Adams et al., 2007).
Data transformation is considered an acceptable remedial measure for non-normality
(Tabachnick and Fidell, 2007), therefore the dependent variable behavioral intention
was transformed using SPSS Transform Compute variable Natural logarithm

48

Data Analysis and Results

transformation (reflected). After the transformation, the value of skewness was -0.895
and for kurtosis -0.540. The values are in the interval (-1+1), thus it can be stated that
the variable does not deviate significantly from normality. P-P plots and Q-Q plots also
confirm that the distribution is closer to normal as the observed standardized residuals
are closely located around the 45 degree line (Appendix 10).
Homogeneity of variance
The second assumption regarding equal variance between the groups on the dependent
variable was assessed using Levenes Test of Homogeneity of Variance. The result is
shown in Table 14. The p-value is 0.092, meaning that the hypothesis of equal variances
cannot be rejected, thus, the homogeneity of variance assumption is satisfied.
Levene Statistic

df1

df2

Sig.

2.189

134

.092

Table 14: Test of Homogeneity of Variances Product Types

5.4.2.2 ANOVA Results


The relationship between behavioral intention and product type was tested using oneway ANOVA. The results in Table 15 reveal that behavioral intention does not differ
significantly by product type at the p-value of 0.05 (F = 1.716, p = 0.167).
Sum of Squares

df

Mean Square

Sig.

Between Groups

1.453

.484

1.716

.167

Within Groups

37.835

134

.282

Total

39.288

137

Table 15: ANOVA Behavioral Intention and Product Types

Post Hoc Tests


In order to gain insight and compare which specific product types may present
differences with regard to behavioral intention, Post Hoc tests were performed using
LSD test (least significant difference), which explores all possible pair-wise
comparisons of means comprising a factor using the equivalent of multiple t-tests. It is
important to note that this method controls comparison-wise Type I error, however it
does not control experiment-wise error rate (Tabachnick and Fidell, 2007) .
The output (Appendix 11) shows that there is a significant difference between low
cost, tangible products and high cost, tangible products, the mean difference is

49

Data Analysis and Results

significant at the 0.026 level. It can be concluded that online purchase intention with
regards to tangible products differs when it comes to low vs. high cost. Therefore, H14
which postulated differences in intentions by product type is partially supported. In
addition, it can be inferred from Table 16 that among tangible products, purchase
intention tends to be higher for low cost products than high cost products.
N

Mean

Std. Deviation

Low cost, intangible

22

6.182

1.24924

High cost, intangible

48

6.240

1.07678

Low cost, tangible

54

6.398

1.03877

High cost, tangible

14

5.571

1.55486

Total

138

6.225

1.15745

Table 16: Behavioral Intention and Product Type Statistics

5.4.3 Additional Analysis Trust


Since the relationship between trust and attitude proposed on H9 (TR A) was not
supported, additional analysis were performed in order to obtain better understanding of
the role of trust and online purchasing behavior. It is important to mention that the
relationship between trust and behavioral intention was also tested with PLS analysis;
the result showed the relation is not statistically significant.
It was decided to test for differences in behavioral intention between respondents with
low levels of trust and high levels of trust. To be able to obtain the variable trust,
measures of trust TR1, TR2 and TR3 were transformed into one variable using SPSS
Transform Compute variable Mean function. Variable dichotomization was
employed using median split as a method, in this case, any value that is found to be
below 5 is categorized as low and any value equal or above 5 is categorized as high. The
sample was then divided into low trust and high trust, the result is presented in Table
17.
N

Mean

Std. Deviation

Low trust

74

5.912

1.25610

High trust

64

6.586

0.91528

Total

138

6.225

1.15745

Table 17: Low and High Trust Groups

In order to statistically test the significance in difference of means, one-way ANOVA


was applied and the respective assumptions were checked. The dependant variable
behavioral intention was transformed, as explained previously, to obtain a distribution

50

Data Analysis and Results

closer to normality. Equal variance between the groups on the dependent variable was
assessed using Levenes Test of Homogeneity of Variance; Table 18 illustrates that the
p-value is 0.000, meaning that the assumption of equal variances is not satisfied. As a
consequence it will be referred to the p-value of the Welch-test which can be conducted
if two groups have unequal variances.
Levene Statistic

df1

df2

Sig.

14.459

136

.000

Table 18: Test of Homogeneity of Variances Trust Groups

The ANOVA result in Table 19 reveals that differences between low and high trust
groups in regard to behavioral intention differ significantly at the p-value of 0.000 (F =
16.341, p = 0.000). As the assumption of homogeneity was not fulfilled it is referred to
the Welch-test.
Sum of Squares

df

Mean Square

Sig.

Between Groups

4.069

4.069

15.714

.000

Within Groups

35.218

136

.259

Total

39.288

137

Table 19: ANOVA Behavioral Intention and Trust Groups

The Welch-test in Table 20 has a p-value of 0.000 and is significant. As 0.000 < 0.05,
H0 is rejected and H1 is accepted. There is evidence to support that consumers with
high levels of trust show higher intentions to purchase online, than consumers with
lower levels of trust on web retailers.

Welch

Statistica

df1

df2

Sig.

16.341

133.878

.000

Table 20: Robust Tests of Equality of Means Trust Groups

5.4.4 Summary of Results of Hypotheses Testing


The overall hypotheses testing results are presented in Table 21 and Figure 6 illustrates
the conceptual model with significant paths (p < 0.05) in solid lines and non significant
paths (p > 0.05) in dashed lines. The detailed discussions are presented in the next
section.

51

Data Analysis and Results

Hypotheses
H1:
H2:
H3:
H4:
H5:
H6:
H7:
H8:
H9:
H10:

H11:
H12:
H13:
H14:

Relationship

Result

A consumers behavioral intention to purchase online


positively affects his/her actual online purchase.
A consumers attitude toward online purchasing positively
affects his/her behavioral intention to purchase online.
A consumers subjective norm in relation to online purchasing
positively affects his/her behavioral intention to purchase
online.
A consumers PBC over online purchasing positively influences
his/her behavioral intention to purchase online.
A consumers PBC over online purchasing positively influences
his/her actual online purchase.
A consumers perceived usefulness of online purchasing
positively affects his/her attitude toward online purchasing.
A consumers perceived ease of use of online purchasing
positively affects his/her attitude toward online purchasing.
Compatibility between online purchasing and a consumers
lifestyle and needs positively affects his/her attitude toward
online purchasing.

BI B

Supported

A BI

Supported

SN BI

Rejected

PBC BI

Supported

PBC B

Rejected

PU A

Supported

PEOU A

Supported

COM A

Supported

A consumers trust in a web retailer positively influences


his/her attitude toward online purchasing.
A consumers perception of interpersonal influence is
positively associated with his/her subjective norm about
online purchasing.
A consumers perception of external influence is positively
associated with his/her subjective norm about online
purchasing.
A consumers positive self-efficacy positively influences his/her
perceived behavioral control over online purchasing.
A consumers positive facilitating conditions positively
influence his/her perceived behavioral control over online
purchasing.
A consumers behavioral intention to purchase online differs
by product type.

TR A

Rejected

II SN

Supported

EI SN

Supported

SE PBC

Supported

FC PBC

Supported

Product type
BI

Partially
Supported

Table 21: Summary of Results of Hypotheses Testing

52

Data Analysis and Results

*Significant at .05 level

** Significant at .01 level

Significant paths in solid lines

Figure 6: The Conceptual Model Results of Path Significances

53

Discussion

6. DISCUSSION

6.1 How do perceived usefulness, perceived ease of use,


compatibility and trust impact attitude toward online
shopping?
The results show that perceived usefulness, perceived ease of use, compatibility and
trust can explain 52 percent of the variance in attitude toward online shopping.
Following, each factor and its impact is discussed.
Perceived Usefulness and Perceived Ease of Use: Two important IT adoption factors,
PU and PEOU, have been empirically supported by a great number of studies to
positively influence attitude and technology acceptance in the information system field.
Moreover, PU and PEOU have been also widely used and supported in the e-commerce
setting. This study found that PU has a positive impact on attitude toward online
purchasing (p < 0.05). The results also show that PEOU has a strong impact on attitude
toward online purchasing (p < 0.01). Both findings are consistent with prior research
(Barkhi et al., 2008, Chen and Tan, 2004, Hernndez et al., 2010, Lin, 2007, Pavlou and
Fygenson, 2006, Suh and Han, 2003, Taylor and Todd, 1995, Vijayasarathy, 2004).
PEOU showed the strongest effect on attitude, meaning that despite consumers
experience shopping online, browsing for products or services free of effort, with access
to user friendly interfaces and simple check out processes are important when
consumers consider shopping online. In addition, PU significance shows that the ability
to get product or service information and compare products or service offerings plays a
significant role in forming positive attitudes for those consumers who seek convenience
and time saving.
Compatibility: It was hypothesized in this study that the compatibility between online
shopping and a consumers existing values, beliefs and lifestyle would have an impact
on his/her attitudes toward online shopping, the results show that the hypothesized
relationship is statistically significant (p < 0.05), the result is consistent with findings
obtained by Chen and Tan (2004), Vijayasarathy (2004) and (Lin, 2007). Thus, it is safe
to assume that consumers whose lifestyle and shopping habits are compatible with the

54

Discussion

convenience and time saving offered by web retailers are more willing to purchase
online. In addition to time saving, consumers who like to shop from home, avoiding big
crowds or maintain busy schedules may show a more positive attitude towards online
shopping.
Trust: The impact of trust on attitude toward online purchasing has been empirically
supported in the e-commerce literature (Chen and Tan, 2004, George, 2004, Ha and
Stoel, 2009, Jarvenpaa et al., 2000, Pavlou and Fygenson, 2006, Suh and Han, 2003).
However, unlike most studies, this study did not provide empirical evidence to support
that trust positively impacts attitude. A plausible explanation for this unexpected finding
is related to the participants prior experience purchasing online. In a study comparing
potential customers versus repeat customers in the online context, Gefen et al. (2003)
found that there are two separate populations regarding trust beliefs, since for repeat
customers trust is influenced by prior experience with web retailers and for potential
customers, trust is mainly based on their disposition to trust. The participants in this
study have experience shopping online and may not had have bad experiences from
their past online purchasing activities, therefore, trust does not play a significant role in
future interactions with web retailers as many may believe that payment by credit card
online might be as safe as payment in a physical store. Another possible reason for the
finding in this study could be due the fact that half of the sample is formed by Danish
respondents, who are probably familiar with Trust Pilot, which is an open communitybased platform for sharing real reviews of shopping experiences, Trust Pilot is ranked
among the top visited Danish websites (Alexa, 2012). Danish consumers may be also
familiar with the quality stamp E-mark that was developed with the support of the
Danish Ministry of Science with purpose of ensuring legal and ethical operations
(Euromonitor International, 2012c). Further, it is fair to say that many online stores
have established good reputations and in turn, many online consumers may choose to
transact with those online stores. To sum up, positive reviews from websites like Trust
Pilot and the E-mark quality stamp together with positive prior experiences shopping
online may have an effect on trusting beliefs which can render them not critical in future
interactions.
Low vs. High Trust groups and Behavioral Intention: Given the unexpected result
regarding the significance of trust in this study, additional analysis were performed in
order to get a better understanding of the role of trust on online behavioral intention.

55

Discussion

Many researchers have proposed the relationship between trust and attitude, as in this
study; nevertheless e-commerce literature has also found significant results when
analyzing the direct impact of trust on purchase intention (Gefen et al., 2003, Pavlou,
2003), thus additional analysis were performed in this study to be able to understand the
role of trust on purchase intentions. The results show that consumers who have high
levels of trust on web retailers express significantly more willingness to purchase online
than those consumers who have lower levels of trust. The results are somewhat aligned
with the extant literature that supports the relevant role of trust in consumer online
behavior. However, the dual role of trust as an attitude predictor and as an important
factor impacting purchase intention needs to be examined.

6.2 How do interpersonal and external influences impact the


subjective norm regarding online shopping?
This study found empirical evidence supporting interpersonal influence and external
influence as significant belief structures that affect subjective norm, such findings are in
line with the findings in e-commerce literature (Bhattacherjee, 2000, Lin, 2007).
Moreover, interpersonal and external influence account for 47 percent of the variance
on subjective norm. Although it is important to note that the findings in this study
suggest that subjective norm is not significantly related to behavioral intention;
discussion on this matter is presented further on.

6.3 How do self-efficacy and facilitating conditions impact


perceptions of behavioral control regarding online shopping?
The results show that self-efficacy and facilitating conditions are significantly related to
PBC, both at p < 0.01. In addition, both self-efficacy and facilitating conditions explain
66 percent of the variance in PBC. The findings in this study are aligned with the ecommerce literature (George, 2004, Lin, 2007, Pavlou and Fygenson, 2006, Taylor and
Todd, 1995, Vijayasarathy, 2004). The finding regarding self-efficacy confirms that
consumers who are confident about purchasing over the internet show more willingness
to engage in online shopping. In regards to facilitating conditions, consumers evidently
need time and money to be able to make purchases online. According to Taylor and
Todd (1995), the absence of facilitating conditions represents barriers to engage in the

56

Discussion

behavior; however the presence of facilitating conditions may not, per se, encourage the
behavior.

6.4 How do attitude, subjective norm and perceived behavioral


control impact online purchase intentions and consequently,
online purchasing?
This study examined the causal relationships proposed in TPB (Ajzen, 1991) between
attitude, subjective norm, PBC and behavioral intention, the relationship between
behavioral intention and actual online purchasing behavior, and the relationship of PBC
with purchase behavior. The results support all relationships, except the relationship
between subjective norm and behavioral intention (p > 0.05) and the relation between
PBC and purchase behavior (p > 0.05). In general, it can be stated that this study
provides empirical support to the well established TPB model in the context of online
behavior, as it further confirms the importance of attitude and PBC as predictors of
behavioral intention and behavioral intention as a direct determinant of behavior.
Subjective Norm and Behavioral Intention: Many studies in the online setting found the
causal relation between subjective norm and behavioral intention significant (Barkhi et
al., 2008, Bhattacherjee, 2000, Hansen et al., 2004, Kim et al., 2003, Taylor and Todd,
1995, Vijayasarathy, 2004, Yoh et al., 2003). Although this studys results do not
support the relationship between subjective norm and purchase intention, such finding is
consistent with findings by George (2004), Lin (2007), Pavlou and Fygenson (2006)
and Chen (2009). One possible explanation is that the relative importance of the
subjective norm may be related to the phase of implementation of the technology,
according to Taylor and Todd (1995), subjective norms have been found to be more
important prior to, or in the early stages of implementation when users have only
limited direct experience. This can be explained by the sample in this study, which was
formed mostly by consumers who had experience purchasing online, in addition,
purchase frequencies show that the respondents were not new to online purchasing as a
one-time event. Another possible explanation could be the failure to consider all of the
relevant social factors, which according to Conner and Armitage (1998), is one of the
reasons that contribute to the mixed findings in literature regarding the role of
subjective norms. In this respect, virtual communities where consumers share
experiences about shopping from certain online stores and product reviews are

57

Discussion

acquiring popularity and the word-of-mouth influence by these virtual communities


needs more exploring, in order to determine its role on the subjective norm.
PBC and Behavior: The dual role of PBC in relation to intention and the behavior has
been proven significant in e-commerce literature (Ling et al., 2011, Pavlou and
Fygenson, 2006, Taylor and Todd, 1995), the findings in the present study show that
PBC has a significant positive influence on behavioral intention, however the direct
influence of PBC on online purchasing behavior was not statistically significant, in fact,
it was negatively related. One possible reason for the inconsistency of this finding with
previous research could be attributed to the measurement of actual behavior. While the
present study used purchase frequency as a measure for behavior, Taylor and Todd
(1995) and Lin (2007) conducted a 2-stage study in order to measure actual behavior,
for instance in Lins study, participants browsed for books on the first stage and the
second stage included two tasks representing the online transaction process: (1) register
with an online bookstore, search for the selected book and place it in the shopping cart,
(2) fill in certain payment and delivery information. Pavlou and Fygenson (2006),
conducted a longitudinal study where a follow up survey confirmed whether
participants purchased online. It is worth noting that although many researchers have
included behavior as a construct measured by online purchase frequency and/or online
purchase within a certain period of time prior to the moment of data collection (Barkhi
et al., 2008, Chen and Tan, 2004, Pavlou, 2003, Suh and Han, 2003), the research
models in those studies did not include the causal relation PBC and behavior, thus
comparisons could not be made in regards with PBC and behavior with studies that used
similar measurement of behavior.

6.5 To what extent, if any, is product type related to online


purchase intention?
Previous research shows that consumers risks perceptions of online shopping are
associated with the type of product, as higher costs could imply greater levels of
economic risks (Bhatnagar et al., 2000), additionally, risks are enhanced when there are
chances that a product or service could perform less than expected, such risk is higher
with online shopping because of its limitations regarding touch, feel, smell and access to
sales personnel assistance. This study explored whether product type had an effect on
behavioral intention, by focusing on two major products characteristics: cost and

58

Discussion

tangibility. The results show that cost plays a significant role for tangible products, as
consumers indicate higher purchase intentions for low cost, tangible products when
compared to high cost, tangible products. No significant differences were found in
relation to intangible products, regardless of cost differences. When compared to
previous research, the results are mixed. Ian and Sui Meng (2000) found that low cost
and frequently purchased goods are more likely to be purchased online than high cost
and infrequently purchased goods; the study also found that intangible products are
related to higher willingness to buy than tangible products. Vijayasarathy (2002) found
that, cost does not have an impact on purchasing intentions while product tangibility
does, his study found that intentions to shop online where higher for intangible products
than tangible products. One possible explanation for the results in this study is that the
internet penetration and spread of web retailers has increased considerably in the last
decade, thus web retailers are dealing with a competitive environment where free
delivery and easy returns are now common, and as a result, low cost tangible products
show similar high levels of purchasing intention as intangible goods. Moreover, internet
shoppers are able to try out the demonstration version of computer software, or be given
trial periods of online newspapers, video and music samples, before making a purchase
decision. This reduces uncertainty in purchase decision and stimulates purchases.
However it appears that perceptions of risk related to high cost, tangible products (i.e.
financial and performance risks), are still making an impact on consumers, in other
words, web retailers of high cost tangible products still face challenges of narrowing the
sensory gap that exists between their products and online consumers.

59

Summary and Conclusion

7. SUMMARY AND CONCLUSION

This section presents the summary and conclusion of the study. First a summary of
findings is presented, then managerial implications, limitations and finally
recommendations for future research are presented.

7.1 Summary of Findings


The purpose of this study was to understand what factors determine online consumer
purchasing behavior. This study tested a model based on the theory of planned behavior.
The approach to testing the model was based on the one used by Taylor and Todd
(1995) with decomposed belief structures. Beliefs about perceived usefulness, perceived
ease of use, compatibility, interpersonal influence, external influence, self-efficacy and
facilitating conditions were integrated in the model in order to explain consumers
behavior in regards to online shopping and identify key determinants of online
purchasing. Moreover, the relationship between product characteristics and online
purchase intention was also explored. The model was tested empirically, a survey of
138 online consumers was conducted and the results from PLS path modeling indicated
that the model was able to explain 38 percent of the variance in behavioral intention and
10 percent of the variance in purchasing behavior. Of the 13 causal paths specified in
the conceptual model, 11 were found to be statistically significant, and the relation
between product characteristics and online purchase intention was partially supported.
It was hypothesized and empirically supported that perceived usefulness, perceived ease
of use and compatibility between online shopping and consumers needs, positively
impact attitude towards online purchasing. Therefore, it is reasonable to estate that
consumers who perceive online shopping to be advantageous, the websites easy to
operate and navigate and believe that shopping online is compatible with their shopping
needs; express a positive attitude toward online shopping and a high willingness to shop
online.
This study also hypothesized that consumers beliefs about their own ability to make
purchases online combined with the availability of resources affect their perceptions of
control and consequently, their intention to shop online. The empirical results confirm

60

Summary and Conclusion

this, as control beliefs become particularly relevant considering the virtual and
impersonal nature of online shopping, furthermore, engaging in online purchasing
implies the use of technology and consumers who are confident about their capabilities
are more willing to make purchases online.
It was hypothesized that online purchase intention would differ by product type. In this
study products and services were categorized based on Peterson et al. (1997)
classification scheme, using cost and tangibility as two major characteristics. The results
showed that consumers are more willing to purchase low cost, tangible products and are
less willing to purchase high cost, tangible products over the internet, while no
significant differences were found in relation to intangible products, regardless of their
cost.
This study draws from previous research and presents a relatively comprehensive, yet
parsimonious model to describe and predict online consumer behavior. The empirical
findings not only offer more insight into the factors that impact online purchasing
behavior but also further empirically support the theory of planned behavior in the ecommerce context.

7.2 Managerial Implications


Internet retail is unlikely to completely replace traditional brick-and-mortar retail
(Datamonitor, 2011), in reality, traditional stores are expanding their reach through the
internet channel and implementing multi-channel strategies. Thus, the findings in this
study may have significant implications for the retailing industry, including pure players
and traditional brick-and mortar businesses.
The findings suggest that online stores websites should be easy to navigate and interact
with, so consumers can concentrate on the purchase experience, rather than dealing with
a complex system. Consumers who feel confident about their skills using the internet to
shop are more likely to make purchases online, for those less confident consumers, help
and assistance tools can be essential in building up their skills and in increasing their
willingness to purchase online.
Online shopping can be appealing to those consumers who seek convenience and
perceive greater advantages in online shopping over shopping in traditional stores. It
can be concluded that the design of the online store environment must be able to deliver

61

Summary and Conclusion

advantages such as useful product information and ease to compare products and prices
online.
Higher levels of trust are associated with higher willingness to shop online, maintaining
clear shipping and return policies, as well as a secure check out process is fundamental.
Marketers must communicate consumers that online shopping can be convenient, safe
and simple to use.
With regard to product types, the findings suggest that high cost, tangible products are
associated with higher levels of risk, thus consumers are less willing to purchase this
type of products online. High costs imply a potential financial risk and consumers are
often limited in terms of touch, feel and smell when purchasing tangible products over
the internet, as a result performance risks are enhanced. The more marketers know
about the path to purchase for a particular product type, the more relevant they can
make their messages, for example providing consumers with broad and useful
information for research-heavy, high cost, tangible products such as electronics.

7.3 Limitations
The main limitation of the present study is related to the sampling method, as a result of
using the snowball technique, the chances of having participants with similar traits are
higher (people tend to associate with those similar to them, thereby sharing the survey
with those contacts in their network and so forth). Although there were no significant
differences regarding gender distribution, education and age of the participants
compared to similar prior studies samples, participants in this study were slightly older
in average, hence non-response bias cannot be entirely discounted.
This study explored some of the key factors affecting online purchasing, where
measurement of purchasing behavior was based on purchasing frequencies, which can
be considered a limitation. First, self-report methods have disadvantages related to the
accuracy of the information provided by the participants, since recalling information
from the last twelve months can be challenging. Second, in order to get information of
the actual behavior, longitudinal studies or lab experiments provide more accurate and
real information.

62

Summary and Conclusion

7.4 Further Research


E-commerce literature supports trust on web retailers as one of the most influential
beliefs associated with online purchasing behavior. Different research models integrate
trust as an attitude predictor and other research models integrate trust as a factor directly
impacting purchase intention, thus, the role of trust needs to be examined, furthermore,
it is important to understand how initial trust is formed on potential online shoppers and
how it is compared to trust among consumers with prior online purchasing experience.
Further, as many consumers turn to well-known and trusted web retailers, they start to
develop loyalty toward certain online stores, thus understanding the factors that affect
loyalty in e-commerce is becoming increasingly important.
Technology is in constant progress, new devices like tablets are available to browse for
products and mobile apps to shop online are becoming popular in developed countries,
as technology changes and mobile online sales increase (Internet Retailer, 2012),
consumers shopping habits are also changing. Younger generations have great
technology assimilation and are growing with an online culture, therefore understanding
mobile-commerce and its potential is fundamental.
Although the present study explores eight belief dimensions, it is evident that there is
more to explore in online consumer behavior and that the significance of factors may
differ across different stages of e-commerce acceptance. Thus, it is important that future
research investigates additional determinants of online purchasing behavior.

63

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69

Appendices

9. APPENDICES

APPENDICES

70

Appendices

71

Appendix 1: Questionnaire Measures and Sources


Constructs Measures
Internet
Experience
(INT)

INT1: What is your level of experience with the use of Internet? (limited/significant)

Shopping
Enjoyment
(ENJ)

ENJ1: In general, I view shopping as an important leisure activity.

Perceived
Usefulness
(PU)

PU1: Shopping online for product x makes it easier to compare products.

Perceived
Ease of
Use (PEOU)

INT2: On average how many hours per week do you spend on the Internet?
INT3: Using the Internet is very important to me.
ENJ2: Under the right circumstances, shopping is fun.
ENJ3: For me, shopping is a pleasurable activity.
PU2: Shopping online for product x provides access to useful shopping information.
PU3: Shopping online saves me time when purchasing product x.
PEOU1: Shopping online for product x to me is clear and easy to understand.
PEOU2: I find shopping online for product x easy to do.
PEOU3: It would be easy for me to become skilled at shopping online for product x.
COM1: Shopping online for product x fits well with my lifestyle.

Compatibility

(COM)

COM2: Shopping online for product x fits well with my shopping needs.
COM3: Shopping online for product x is compatible with the way I like to shop.

Sources
Barkhi et al.
(2008)
Jarvenpaa et al.
(2000)
Lin (2007)
adapted from
Davis (1989)
Lin (2007)
adapted from
Davis (1989)
Vijayasarathy
(2004) adapted
from Taylor and
Todd (1995)

TR1: Online stores keep my best interests in mind.


Trust (TR)

TR2: I select online stores which I believe are honest.


TR3: Overall, online stores are trustworthy.

Interpersonal II1: My friends or family think that shopping online for product x is a good idea.
Influence (II) II2: My friends or family encourage me to shop online for product x.
EI1: I have read/seen news reports which say that online shopping provides a good way of
purchasing product x.
External
Influence (EI) EI2: The popular press adopts a positive view towards online shopping for product x.
EI3: Mass media reports have influenced me to try online shopping to purchase product x.
SN1: People who are important to me would recommend that I purchase product x
Subjective online.
Norm (SN)
SN2: Most of the people who I value would purchase product x online.
SE1:If I wanted to, for me to purchase product x online would be ...(difficult/easy)
Self-Efficacy
(SE)
Facilitating
Conditions
(FC)

SE2: If I wanted to, I am confident I could purchase product x online on my own.


FC1: I have the time to purchase product x online.
FC2: I have enough money to purchase product x online.

Perceived PBC1: I am able to purchase product x online.


Behavioral PBC2: Using the internet to purchase product x is entirely within my control.
Control (PBC)
A1: Purchasing product x online is... (bad idea/good idea)
Attitude (A)

A2: Purchasing product x online is (foolish idea/wise idea)


A3: Purchasing product x online is an idea I... (dislike/like)

Gefen et al.
(2003)
Bhattacherjee
(2000)
Bhattacherjee
(2000)

Pavlou and
Fygenson (2006)
Lin (2007)
adapted from
Taylor and Todd
(1995)
Lin (2007)
adapted from
Taylor and Todd
(1995)
Pavlou and
Fygenson (2006)

Pavlou and
Fygenson (2006)

A4: Shopping online for product x is (unpleasant/pleasant)


Behavioral BI1: I intend to purchase product x online in the near future.
Intention (BI) BI2: I will purchase product x online in the near future.

Pavlou and
Fygenson (2006)

Appendices

Appendix 2: Web-Based questionnaire

72

Appendices
Appendix 2: Web-Based questionnaire (cont.)

73

Appendices
Appendix 2: Web-Based questionnaire (cont.)

74

Appendices

Appendix 2: Web-Based questionnaire (cont.)

75

Appendices
Appendix 2: Web-Based questionnaire (cont.)

76

Appendices

Appendix 3: Purchase Frequencies


(During the last twelve months at the time of the survey)

Once
Appliances
Books
CDs/DVDs
Clothing
Electronics
Furniture
Personal care
Software
Sports equipment
Subscriptions
Tickets
Travel
0

10

12

14

25

30

35

2-3 times a year


Books
CDs/DVDs
Clothing
Electronics
Personal care
Software
Sports equipment
Subscriptions
Tickets
Travel
0

10

15

20

4-5 times a year


Books
CDs/DVDs

Clothing
Electronics
Personal care
Software
Sports equipment

Tickets
Travel
0

10

15

20

77

Appendices
Appendix 3: Purchase Frequencies (cont.)

Once per 1 or 2 months


Books
CDs/DVDs
Clothing
Electronics
Personal care
Software
Sports equipment
Subscriptions
Tickets
Travel
0

10

12

2 times a month
Books
Clothing

Software
Tickets
0

3 times a month
Books

Clothing
Electronics
Software

Tickets
0

78

Appendices
Appendix 3: Purchase Frequencies (cont.)

More than 3 times a month

Books

Software

79

Appendices

Appendix 4: Danish Online Shoppers

Source: Danmark Statistik

Source: Danmark Statistik

80

Appendices

Appendix 4: Danish online shoppers (cont.)

Source: Danmark Statistik

81

Appendices

Appendix 5: Latent Variables Correlations

82

Appendices

AVE (highlighted)

Appendix 6: Latent Variables Squared Correlations and AVE

83

Appendices

Appendix 7: Cross Loadings

A1
A2
A3
A4
BI1
BI2
COM1
COM2
COM3
EI1
EI2
EI3
ENJ1
ENJ2
ENJ3
FC1
FC2
II1
II2
INT1
INT2G
INT3
PB4
PBC1
PBC2
PEOU1
PEOU2
PEOU3
PU1
PU2
PU3
SE1
SE2
SN1
SN2
TR1
TR2
TR3

BI

COM

0.911
0.847
0.876
0.751
0.547
0.549
0.477
0.459
0.528
0.294
0.363
0.015
0.013
0.155
0.204
0.559
0.424
0.397
0.235
0.343
-0.045
0.408
0.101
0.424
0.473
0.613
0.615
0.528
0.492
0.411
0.339
0.670
0.512
0.233
0.269
0.415
0.292
0.486

0.056
0.047
0.075
0.173
0.200
0.227
0.210
0.192
0.208
-0.097
-0.021
-0.075
0.174
0.197
0.168
0.104
0.123
-0.083
-0.053
0.050
0.093
0.203
1.000
0.120
-0.081
0.150
0.089
0.085
0.103
0.112
0.200
0.016
0.118
0.023
0.056
0.071
0.031
0.066

0.556
0.416
0.474
0.467
0.968
0.964
0.427
0.351
0.465
0.170
0.255
0.067
0.038
0.091
0.094
0.464
0.372
0.329
0.201
0.364
0.036
0.402
0.221
0.443
0.378
0.414
0.348
0.329
0.296
0.270
0.311
0.533
0.623
0.260
0.327
0.277
0.220
0.234

0.482
0.398
0.537
0.432
0.443
0.459
0.912
0.883
0.886
0.242
0.358
0.110
-0.079
0.065
0.045
0.548
0.473
0.285
0.200
0.273
0.143
0.443
0.228
0.483
0.399
0.461
0.502
0.410
0.342
0.406
0.417
0.400
0.328
0.335
0.362
0.490
0.475
0.454

84

Appendices
Appendix 7: Cross Loadings (cont.)

A1
A2
A3
A4
BI1
BI2
COM1
COM2
COM3
EI1
EI2
EI3
ENJ1
ENJ2
ENJ3
FC1
FC2
II1
II2
INT1
INT2G
INT3
PB4
PBC1
PBC2
PEOU1
PEOU2
PEOU3
PU1
PU2
PU3
SE1
SE2
SN1
SN2
TR1
TR2
TR3

EI

ENJ

FC

II

0.303
0.222
0.197
0.251
0.215
0.185
0.271
0.247
0.279
0.871
0.902
0.744
0.200
0.160
0.165
0.169
0.147
0.419
0.593
0.058
0.005
0.161
-0.070
0.078
0.150
0.243
0.197
0.081
0.296
0.279
0.171
0.155
0.190
0.618
0.474
0.440
0.160
0.264

0.065
0.017
0.060
0.353
0.101
0.063
0.045
-0.051
0.038
0.172
0.137
0.207
0.818
0.898
0.927
0.014
-0.008
0.017
0.058
0.005
-0.068
0.184
0.205
-0.074
-0.074
0.179
0.122
0.127
0.073
0.186
0.124
-0.002
0.022
0.017
0.078
0.296
0.075
0.205

0.486
0.437
0.549
0.305
0.450
0.420
0.516
0.553
0.420
0.153
0.247
-0.014
-0.061
0.001
0.069
0.910
0.930
0.306
0.224
0.373
0.049
0.316
0.124
0.786
0.576
0.463
0.468
0.490
0.368
0.358
0.267
0.608
0.624
0.283
0.295
0.323
0.299
0.496

0.342
0.350
0.264
0.178
0.333
0.209
0.212
0.191
0.285
0.567
0.555
0.237
0.132
-0.048
0.039
0.244
0.275
0.913
0.935
0.125
-0.033
0.179
-0.073
0.215
0.265
0.213
0.138
0.123
0.377
0.321
0.229
0.175
0.294
0.586
0.568
0.232
0.084
0.194

85

Appendices

Appendix 7: Cross Loadings (cont.)

A1
A2
A3
A4
BI1
BI2
COM1
COM2
COM3
EI1
EI2
EI3
ENJ1
ENJ2
ENJ3
FC1
FC2
II1
II2
INT1
INT2G
INT3
PB4
PBC1
PBC2
PEOU1
PEOU2
PEOU3
PU1
PU2
PU3
SE1
SE2
SN1
SN2
TR1
TR2
TR3

INT

PBC

PEOU

PU

0.406
0.227
0.333
0.223
0.371
0.373
0.461
0.364
0.351
0.124
0.228
-0.064
0.021
0.134
0.152
0.331
0.273
0.194
0.087
0.626
0.545
0.914
0.196
0.342
0.221
0.315
0.297
0.301
0.346
0.266
0.209
0.418
0.325
0.210
0.197
0.149
0.259
0.243

0.453
0.400
0.535
0.236
0.473
0.398
0.427
0.494
0.390
0.099
0.194
-0.033
-0.135
-0.047
-0.033
0.652
0.736
0.333
0.156
0.405
0.033
0.300
0.035
0.937
0.893
0.457
0.420
0.488
0.344
0.291
0.253
0.662
0.666
0.345
0.313
0.228
0.262
0.433

0.604
0.489
0.603
0.499
0.363
0.420
0.454
0.477
0.436
0.248
0.238
-0.027
0.073
0.128
0.222
0.500
0.466
0.298
0.046
0.305
0.027
0.356
0.121
0.474
0.443
0.905
0.916
0.888
0.393
0.368
0.461
0.589
0.433
0.108
0.139
0.359
0.304
0.576

0.480
0.482
0.420
0.364
0.370
0.313
0.407
0.420
0.422
0.312
0.357
0.076
0.105
0.118
0.180
0.401
0.356
0.402
0.319
0.205
0.005
0.399
0.161
0.359
0.308
0.511
0.405
0.409
0.887
0.878
0.662
0.436
0.341
0.291
0.288
0.314
0.391
0.319

86

Appendices

Appendix 7: Cross Loadings (cont.)

A1
A2
A3
A4
BI1
BI2
COM1
COM2
COM3
EI1
EI2
EI3
ENJ1
ENJ2
ENJ3
FC1
FC2
II1
II2
INT1
INT2G
INT3
PB4
PBC1
PBC2
PEOU1
PEOU2
PEOU3
PU1
PU2
PU3
SE1
SE2
SN1
SN2
TR1
TR2
TR3

SE

SN

TR

0.622
0.562
0.592
0.398
0.629
0.590
0.331
0.386
0.350
0.212
0.259
-0.043
-0.040
0.010
0.062
0.672
0.573
0.335
0.152
0.533
0.049
0.381
0.074
0.732
0.579
0.519
0.458
0.541
0.408
0.353
0.258
0.915
0.916
0.258
0.218
0.234
0.262
0.365

0.241
0.206
0.250
0.207
0.350
0.250
0.345
0.267
0.376
0.450
0.596
0.405
0.092
0.031
0.008
0.238
0.324
0.529
0.606
0.090
0.087
0.224
0.042
0.326
0.319
0.167
0.130
0.050
0.281
0.304
0.157
0.153
0.313
0.941
0.931
0.303
0.090
0.201

0.496
0.353
0.494
0.417
0.282
0.318
0.516
0.487
0.588
0.364
0.368
0.206
0.112
0.268
0.301
0.458
0.446
0.234
0.191
0.199
0.102
0.261
0.075
0.365
0.379
0.532
0.511
0.437
0.291
0.371
0.405
0.371
0.311
0.209
0.289
0.829
0.652
0.842

87

Appendices

Appendix 8: SmartPLS Output Path Analysis

88

Appendices

Appendix 9: SmartPLS Output Bootstrapping

89

Appendices

Appendix 10: P-P Plots and Q-Q Plots

Variable Behavioral Intention before transformation:

Variable Behavioral Intention after transformation:

90

Appendices

91

Appendix 11: Post Hoc Tests


LSD
(I) Product types

Mean
Difference
(I-J)

Std. Error

High cost,
-0.00785
intangible
Low cost,
-0.0985
tangible
High cost,
0.26138
tangible
High cost, intangible
Low cost,
0.00785
intangible
Low cost,
-0.09065
tangible
High cost,
0.26923
tangible
Low cost, tangible
Low cost,
0.0985
intangible
High cost,
0.09065
intangible
High cost,
.35988*
tangible
High cost, tangible
Low cost,
-0.26138
intangible
High cost,
-0.26923
intangible
Low cost,
-.35988*
tangible
*The mean difference is significant at the 0.05 level.

0.13681

0.954

-0.2784

0.2627

0.1344

0.465

-0.3643

0.1673

0.18166

0.153

-0.0979

0.6207

0.13681

0.954

-0.2627

0.2784

0.10541

0.391

-0.2991

0.1178

0.1614

0.098

-0.05

0.5885

0.1344

0.465

-0.1673

0.3643

0.10541

0.391

-0.1178

0.2991

0.15936

0.026

0.0447

0.6751

0.18166

0.153

-0.6207

0.0979

0.1614

0.098

-0.5885

0.05

0.15936

0.026

-0.6751

-0.0447

Low cost, intangible

(J) Product
types

Sig.

95% Confidence
Interval
Lower
Upper
Bound
Bound