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Article history: Information systems professionals must pay attention to online customer retention. Drawing on the
Received 19 September 2008 relationship marketing literature, we formulated and tested a model to explain B2C user repurchase
Received in revised form 17 November 2010 intention from the perspective of relationship quality. The model was empirically tested through a
Accepted 30 December 2010
survey conducted in Northern Ireland. Results showed that online relationship quality and perceived
Available online 19 May 2011
website usability positively impacted customer repurchase intention. Moreover, online relationship
quality was positively influenced by perceived vendor expertise in order fulfillment, perceived vendor
Keywords:
reputation, and perceived website usability, whereas distrust in vendor behavior negatively influenced
Repurchase intention
online relationship quality. Implications of these findings are discussed.
Online relationship quality
Business-to-customer e-commerce ß 2011 Elsevier B.V. All rights reserved.
Trust
Distrust
Satisfaction
0378-7206/$ – see front matter ß 2011 Elsevier B.V. All rights reserved.
doi:10.1016/j.im.2011.05.003
Y. Zhang et al. / Information & Management 48 (2011) 192–200 193
does online relationship quality influence customers’ online relationship quality as a second-order construct composed of a
repurchase intention; and (2) what factors influence online customer’s trust on and satisfaction with an online vendor.
relationship quality? Two categories of factors are usually considered to be
antecedents of relationship quality: salesperson characteristics
2. Conceptual background (qualities such as domain expertise) and behavior. However, in the
B2C e-commerce context, it is the website, that represents the
Recently, we have seen an explosive growth of relationship vendor, not a salesperson. To build an online relationship quality in
marketing research in the traditional business context [11]. The B2C e-commerce, a well-designed, highly usable website becomes
area has considered all activities that establish, develop, and the equivalent of a competent salesperson. Hence, we included
maintain relational exchange in order to generate long-term website usability as a major factor influencing online relationship
customer relationships. Sanchez-Franco et al. [22] investigated quality.
relationship quality between customers and service providers and In the online context, fulfilling an order is completed by the
found that it positively influenced loyalty towards the service online vendor either through the website (if the product is digital)
provider. Lages et al. [16] developed a scale (RELQUAL) to measure or by offline means. Vendor expertise in fulfilling the order is
relationship quality in the export market. Similarly, Rauyruen and critical in both instances. We therefore included this expertise as
Miller [21] studied relationship quality in the B2B context and part of our model.
found that it positively influenced business customer loyalty. Most In the traditional business context, salespeople promote
prior studies were performed in the traditional marketing context. relationship quality by demonstrating certain behaviors includ-
We focused on the impact of online relationship quality on ing relational selling behavior, service recovery, relationship
repurchase intention in a B2C e-commerce context. investment, social support, communication and relationship
Although earlier research in relationship marketing investigated management. We focused on customer’s distrust in vendor
and tested relationship quality in various contexts, the definitions behavior (e.g., promising to do something but not doing it); this
and conceptualization remained subtly different. Johnson et al.’s can severely damage a vendor’s relationship quality with its
conceptualization of relationship quality focused on trust, commit- customers. Distrust is, of course, an important and distinct factor
ment, and relationship stability [13], but it has been considered to that can influences online customer’s behavior [6]. Most prior
also include satisfaction, commitment, and service quality. Howev- research has focused only on positive factors, such as trust,
er, despite inconsistencies, most of the literature agrees that familiarity, service level, perceived usefulness, and perceived ease
satisfaction and trust are the key sub-constructs of relationship of use. By including this important yet ignored negative factor, we
quality. Prior work has argued that a good relationship is developed hoped to help develop a more comprehensive understanding of
only when buyers feel satisfied and have trust in their relationship the effect of online relationship quality and how to avoid
with the vendor. Extending this definition, we view online destroying it.
Vendor Characteristics
Perceived
Website
Usability
H3 H2
Perceived
Expertise in
H4 Online H1 Online
Order Fulfillment
Relationship Repurchase
Quality Intention
H5
Perceived
Reputation
Control variables:
Gender; Income; education
H6 Expertise in using internet
Vendor Behavior
Familiarity with the vendor
Privacy concern
Distrust in
Vendor
Behavior
3. Research model and hypotheses also important for online customers to receive the product for which
they have paid in a timely, efficient, and safe manner. When a
Fig. 1 shows the research model for our study. It is intended to customer’s perception of online vendor expertise in order fulfillment
explain customer repurchase intention in B2C e-commerce. is high, the customer believes that the vendor has the ability and
Relationship quality and perceived website usability are consid- relevant competencies associated with order fulfillment and is
ered to be the main predictors of repurchase intention. Factors confident that he/she will obtain the product on time. This, in turn,
relating to vendor characteristics (perceived expertise in order increases his/her satisfaction and trust. Therefore, customers tend to
fulfillment, perceived website usability, and perceived reputation) develop long-term relationships when they perceive high vendor
and vendor behavior (distrust in vendor behavior) are the assumed expertise in order fulfillment. Thus we hypothesized:
antecedents of relationship quality.
Hypothesis 4. Perceived vendor expertise in order fulfillment is
3.1. Online relationship quality positively related to online relationship quality.
were held with two colleagues to discuss: the appropriateness of 4.3. Data analysis
the questionnaire items; whether there was any ambiguity
surrounding the questionnaire items; and the appearance and We used a two-stage analytical procedure to analyze the data.
layout of the instrument. Based on this, a revised questionnaire First, a confirmatory factor analysis was done to assess the
was developed and sent to the same individuals for a second measurement model. Second, the structural model was examined.
review. Some additional suggestions were made and minor We used SmartPLS to conduct the analysis. Bootstrapping with 500
revisions resulted. The revised questionnaire was then piloted re-samples and 360 cases per sample was used to assess the path
among 10 staff and 12 students in a large university before being significance.
accepted as the final version.
4.3.1. Measurement model
4.2. Data collection We first checked for reliability and construct validity. Online
relationship quality was conceptualized as a second-order factor
To test the model, we conducted a survey based on respondents’ containing satisfaction and trust. We used the factor score of the
retrospective online purchasing experience. This is appropriate first-order construct as items of online relationship quality.
because online purchase behaviors are memorable events that can The construct loadings were examined, with values greater
be recalled by customers [9]. The participants were instructed to than 0.7 being retained and items with loadings lower than 0.7
complete the survey questionnaire only if they had online buying being dropped. The model was then re-examined. All of the
experience, and the product was for personal use. This solved the remaining items loaded sufficiently on the relevant construct
problem of respondents answering questions related to purchases (P < 0.01). Table 2 shows the number of items, composite
they had carried out on behalf of the university. We asked reliability, and average variance extracted in the final measure-
respondents to ‘‘please think of a vendor you have purchased from ment. The composite reliability was then checked: the lowest value
recently via the Internet.’’ They were asked to write down the was 0.84, which is larger than the recommended value of 0.7,
vendor’s name and website address before answering survey showing good reliability.
questions. Convergent validity was assessed by examining average
The survey data was collected from a sample of students and variance extracted (AVE) from the measures; it ranged from
staff at a university located in Northern Ireland. We are 0.61 to 0.78, well above the recommended value of 0.5, thus
confident that the study can be generalized to the population showing convergent validity. In Table 3, the square root of the AVE
in Northern Ireland in terms of the age and socio-economic for each construct was larger than the correlation of any specific
profiles of online consumers represented by our sample. The construct with any of the other constructs, showing that we had
feasibility of using a student sample has been demonstrated in discriminant validity. As shown in Appendix B, all the items
prior studies [8]; a large portion of them have online shopping loaded significantly on their target construct, and the loadings
experience. We re-analyzed the sample by splitting it into were larger than the cross loadings, which also confirmed
Student (sample size 155) and University Staff (sample size construct validity.
205). Overall results for the two sub-samples showed that the In order to address any possible common method bias, we
significance level remained the same and no substantial followed the procedure suggested by Liang et al. [17]. We
differences were found in the inferences between the student calculated each indicator’s variance, as explained by their
sub-sample and the staff sub-sample, despite slight differences construct and by this method. As shown in Appendix C, the
Table 2
Results of confirmatory factor analysis.
Table 3
Correlation between constructs.
Note: SD, standard deviation; PEOF, perceived expertise in order fulfillment; SAT, satisfaction; TRU, trust; PR, Perceived reputation; DIST, distrust in vendor behavior; PWU,
perceived website usability; CEUI, customer expertise in using Internet; Values in the diagonal row are square roots of the average variance extracted. The other cells contain
the correlations between constructs.
average substantively explained by variance of the indicators was was supported by the significant path coefficient of 0.20
0.67, the average method explained by variance was 0.01, and the (p < 0.001). The positive impact of perceived vendor expertise in
ratio was 67:1. In addition, all the method factor loadings were not order fulfillment on relationship quality was also confirmed
significant. Thus common method bias was not a major concern in (coefficient of 0.36, p < 0.001), supporting Hypothesis 4. Our data
our study. also supported Hypothesis 5 (coefficient of 0.26, p < 0.001). Our
result also showed a negative influence of distrust in vendor
4.3.2. Structural model behavior on online relationship quality (coefficient of 0.24,
After checking the validity, we tested our hypotheses with PLS. p < 0.001), which confirmed Hypothesis 6. We did not find any
Fig. 2 shows the results of the structural model, including the path significant relationship between the control variables and online
coefficients and their significance, along with the R2. We found that repurchase intention.
our model explained 34% of the variance of online repurchase
intention and 62% of the variance of online relationship quality. 5. Discussion, implications, and limitations
Hypothesis 1 posited that online relationship quality positively
influences repurchase intention. The path coefficient of 0.34 5.1. Research implications
(p < 0.001), supporting this hypothesis. The influence of perceived
website usability on online repurchase intention was positive and Most prior research on online repurchase studied satisfaction
significant (coefficient of 0.24, p < 0.001), providing support for and trust separately. We have shown why they should be
Hypothesis 2. Hypothesis 3 posited that perceived website examined together when studying online repurchase intention.
usability positively influenced online relationship quality. This Using the second-order construct of relationship quality, we
Vendor Characteristics
Perceived
Website
Usability
H3 (0.20***) H2 (0.24***)
Perceived
Expertise in H4 (0.36***) Online Online
Order Relationship H1 (0.34***) Repurchase
Fulfillment Quality Intention
(R2=0.62) (R2=0.34)
H5 (0.26***)
Perceived
Reputation
H6 (-0.24***)
Vendor Behavior
*p≤0.05,**p≤0.01;***p≤0.001
Distrust in
Vendor
Behavior
obtained a more parsimonious model with the same predictive view when conducting business online and evaluate ongoing
power as with the two separate models; indeed, when we broke attempts to do so by using the concept of online relationship
the relationship quality into two first-order constructs (satisfac- quality in the pursuit of customer loyalty.
tion and trust) and re-examined the model, we found that the first- Website usability was found to positively influence both
order model explained the same variance of repurchase intention relationship quality and repurchase intention, showing that
as did the higher order model. Marketing research has posited a online vendors should be more considerate of the role of the
paradigm shift from transactional marketing to relationship website and work to improve user experience by providing rich
marketing and has called for more focus on buyer–seller relation- product information, improving website navigation functions,
ships; this was true for e-commerce in our study. and making online purchasing easier.
Our study identified and synthesized several important ante- Expertise in order fulfillment was found to be an important
cedents of online relationship quality: vendor characteristics antecedent of relationship quality, showing that online vendors
(website usability, expertise in order fulfillment and reputation) should demonstrate their expertise in order to increase
and vendor behavior (distrust in vendor behavior). Also online customer loyalty and retention. For example, they could provide
relationship quality was positively influenced by all three vendor professional testimonies and publish on-time delivery statistics.
characteristics and negatively influenced by perceived malevolent Mangers of e-commerce website can also improve online
vendor behavior. relationship quality by establishing and sustaining a good
Website usability depends on product information presentation reputation thus promoting customer loyalty and retention.
and ease of conducting transactions. Order fulfillment should focus
on post-purchase service. The empirical data showed that perceived 5.3. Limitations
vendor expertise in order fulfillment had a greater impact on online
relationship quality than perceived website usability. This is Our research had certain limitations. First, our data were
important. There have been very few studies on B2C e-commerce collected only in Northern Ireland, UK. Caution must therefore be
retention that have focused on the post-purchase stage of order exercised when attempting to generalize our results to other
fulfillment. We showed the importance of considering the post- locations. Also, since the respondents self-selected the online
purchase stage of order fulfillment. Furthermore, the greater impact vendor from whom they had purchased material in order to
of order fulfillment implies that vendor post-purchase expertise is answer the questionnaire, social desirability bias may be present –
more important for online relationship quality than expertise in although it may be observed that the data had enough variability to
online activities. Product delivery is important. make model testing possible.
We also studied another vendor characteristic: perceived vendor
reputation. This was not included as an antecedent of relationship
quality but is considered very important. Prior research on B2C e- 6. Conclusion
commerce found that vendor reputation was important as it can
influence customer. Our study revealed that perceived reputation Our study developed and tested a model explaining B2C e-
was important: it positively impacts online relationship quality, commerce customer repurchase intention from a relationship
extending the original offline relationship quality model. quality perspective. By including vendor characteristics (per-
The study also revealed the negative influence of distrust in ceived website usability, perceived expertise in order fulfillment
vendor behavior on online relationship quality. We empirically and perceived reputation) and vendor behavior (distrust in
demonstrated its detrimental role on online relationship quality. vendor behavior), our model explained the importance of online
relationship quality to online re-purchase intention. To a certain
5.2. Managerial implications degree, our study demonstrated the value of using relationship
marketing theory to account for online customer repurchasing
Our study poses certain implications for the management. It behavior. Its results should provide useful implications for e-
suggests that online vendors should adopt a relationship-oriented commerce practitioners.
Online repurchase intention Likelihood/probability that you will purchase online from the [20]
same vendor. . .
In the medium term
In the long term
I will never purchase from the same vendor again
Trust I believe that this vendor is consistent in quality and service [20]
I believe that this vendor is keen to fulfill my needs and wants
I believe that this vendor is honest
I believe that this vendor wants to be known as one that keeps
promises and commitments
I believe that this vendor has my best interests in mind
I believe that this vendor is trustworthy
I believe that this vendor has high integrity
I believe that this vendor is dependable
198 Y. Zhang et al. / Information & Management 48 (2011) 192–200
Appendix A (Continued )
Perceived expertise in order fulfillment I believe that this vendor has knowledge and expertise in [20]
distribution (i.e. how to deliver products/services)
I believe that this vendor has efficiently integrated all necessary
departments/systems that are needed to deliver products or
services
I believe that this vendor has an efficient system for processing
orders received
Distrust in vendor behavior I believe that this vendor could sometimes fail to deliver product/ Developed
service as and when promised based on [8,23]
I believe this vendor is sometimes unable to deliver what they
promise to
I believe that this vendor is sometimes unable to meet
expectations
I believe that this vendor sometimes promises more than they can
deliver
Customer expertise in using I know a lot about conducting purchases via the Internet [18]
internet to conduct tractions I am experienced in conducting purchases via the Internet
I am informed about conducting purchases via the Internet
I am an expert buyer of products/services via the Internet
# Construct Item 1 2 3 4 5 6 7 8
1 Perceived expertise in order fulfillment PEOF1 0.86 0.17 0.33 0.34 0.52 0.44 0.39 0.13
PEOF2 0.86 0.24 0.36 0.31 0.50 0.38 0.38 0.19
PEOF3 0.85 0.20 0.46 0.38 0.66 0.39 0.54 0.19
2 Distrust in vendor behavior DIST1 0.16 0.78 0.15 0.22 0.32 0.27 0.26 0.04
DIST2 0.20 0.87 0.25 0.30 0.37 0.35 0.25 0.16
DIST3 0.23 0.86 0.17 0.33 0.38 0.38 0.24 0.13
DIST4 0.20 0.81 0.29 0.35 0.46 0.33 0.31 0.11
3 repurchase intention ORI1 0.31 0.19 0.78 0.33 0.34 0.13 0.38 0.14
ORI2 0.43 0.24 0.89 0.40 0.48 0.33 0.47 0.20
ORI3 0.34 0.21 0.71 0.20 0.34 0.22 0.31 0.11
4 Satisfaction SAT1 0.41 0.31 0.38 0.89 0.44 0.47 0.40 0.25
SAT2 0.32 0.33 0.35 0.91 0.38 0.48 0.36 0.25
SAT3 0.35 0.34 0.31 0.86 0.38 0.35 0.37 0.27
5 Trust TRU1 0.60 0.46 0.46 0.47 0.85 0.59 0.50 0.18
TRU2 0.59 0.33 0.46 0.33 0.83 0.45 0.45 0.12
TRU3 0.57 0.40 0.37 0.32 0.83 0.43 0.47 0.19
TRU4 0.54 0.29 0.44 0.39 0.78 0.42 0.50 0.14
TRU5 0.35 0.35 0.24 0.32 0.72 0.31 0.33 0.17
TRU6 0.56 0.38 0.39 0.33 0.84 0.39 0.38 0.11
TRU7 0.57 0.40 0.38 0.38 0.87 0.46 0.47 0.14
TRU8 0.55 0.47 0.46 0.46 0.88 0.53 0.47 0.18
6 Perceived reputation PR1 0.27 0.25 0.22 0.36 0.39 0.70 0.29 0.30
PR2 0.38 0.36 0.23 0.39 0.48 0.82 0.41 0.15
PR3 0.34 0.19 0.17 0.25 0.33 0.72 0.31 0.21
PR4 0.43 0.39 0.29 0.43 0.46 0.84 0.39 0.22
PR5 0.35 0.29 0.15 0.39 0.41 0.83 0.28 0.16
PR6 0.41 0.35 0.29 0.45 0.47 0.75 0.32 0.15
Y. Zhang et al. / Information & Management 48 (2011) 192–200 199
Appendix B (Continued )
# Construct Item 1 2 3 4 5 6 7 8
7 Perceived website usability PWU1 0.46 0.20 0.46 0.37 0.41 0.25 0.79 0.18
PWU2 0.43 0.24 0.36 0.37 0.50 0.46 0.81 0.18
PWU3 0.43 0.29 0.41 0.41 0.48 0.46 0.85 0.21
PWU4 0.41 0.22 0.34 0.32 0.44 0.40 0.78 0.24
PWU5 0.34 0.30 0.31 0.33 0.41 0.36 0.75 0.29
PWU6 0.47 0.27 0.43 0.33 0.46 0.29 0.87 0.27
PWU7 0.34 0.27 0.42 0.30 0.37 0.28 0.82 0.20
PWU8 0.43 0.27 0.43 0.31 0.44 0.28 0.78 0.23
8 Customer expertise in using internet CEUI1 0.16 0.10 0.19 0.27 0.14 0.22 0.25 0.91
CEUI2 0.19 0.12 0.20 0.26 0.17 0.23 0.26 0.93
CEUI3 0.21 0.11 0.14 0.30 0.19 0.29 0.28 0.87
CEUI4 0.14 0.16 0.13 0.18 0.16 0.14 0.17 0.79
Construct Item Substantive factor loading (R1) R12 Method factor loading (R2) R12
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Yixiang Zhang is an Assistant Professor in the School of Business Research, Journal of Marketing Management,
Management and Economics, Beijing Institute of Tech- International Journal of Innovation Management, Service
nology. He received his Ph.D. from City University of Industries Journal, and others.
Hong Kong and University of Science and Technology of
China. His current research is focused on knowledge
management, and electronic commerce. He has pub- Patrick McCole is a Lecturer in Management at Queen’s
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Management. Belfast. He received his BA (Hons) and PhD degrees
from the University of Ulster. His main research
interests include the role of trust in e-commerce,
new media and customer-connectivity, as well as
empirical evidence relating to the Service-Dominant
Logic.