VINE Journal of Information and Knowledge Management Systems

Predicting online repurchase intentions with e-Satisfaction as mediator: a study on Gen Y

Shrawan Kumar Trivedi, Mohit Yadav,
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Shrawan Kumar Trivedi, Mohit Yadav, "Predicting online repurchase intentions with e-Satisfaction as mediator: a study on
Gen Y", VINE Journal of Information and Knowledge Management Systems, https://doi.org/10.1108/VJIKMS-10-2017-0066
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 Predicting online repurchase intentions with e-Satisfaction as mediator: a study on Gen
Y

Purpose: Shopping online is a fast-growing phenomenon. A look into the rapid exponential
growth of the primary players in this sector shows huge market potential for e-commerce.
Given the convenience of internet shopping, e-commerce is seen as an emerging trend among
consumers, specifically the younger generation (Gen Y). The popularity of e-commerce and
online shopping has captured the attention of e-retailers, encouraging researchers to focus on
this area. The present empirical study examines the relationship between online repurchase
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intention and other variables such as security, privacy concerns, trust, and ease of use (EOU),
mediated by e-satisfaction.

Design/methodology/approach: A self-administered survey method is employed, and

students aged between 20 and 35 at universities in northern India are selected as subjects. To
test the hypotheses of this study, an online questionnaire is distributed to participants, with
309 legitimate responses received. The data is analyzed using SPSS version 20.0 and AMOS
version 20.0. Structural Equation Modeling (SEM) is used to examine the model and to test
the hypotheses.

Findings: The results of this study show that security, privacy concerns, trust, and EOU have
a positive significant relationship with repurchase intention. The findings also reveal that
e-satisfaction has a full mediation effect between security and repurchase intention and also
between trust and repurchase intention. In addition, a partial mediation effect of e-satisfaction
is noted between EOU and repurchase intention and between privacy concerns and
repurchase intention.

Practical and social implications: The results show that security, trust, EOU, and privacy
concerns are the factors that have most impact on consumer purchasing behavior. In terms of
the repurchase intention of Gen Y consumers, what is needed are strong security features, an
easy-to-use interface, a trusted privacy policy, and the creation of trust. Furthermore, it may
be beneficial to observe e-satisfaction as a mediator when identifying potential problems;
online satisfaction is important for the group in this study, and the results show that it impacts
on the relation between repurchase intention and other factors.

Originality/value: This research determines the impact of security, privacy concerns, EOU,
and trust on the online repurchasing behavior of Gen Y in India. The mediation effect of
e-satisfaction is also determined.
 Keywords: Electronic commerce, Repurchase intention, E-satisfaction, Service, Privacy,
Trust, Ease of use, SEM

Introduction

In today’s competitive world and rapidly shifting business environment, the power of
retailers and the level of customer demand are increasing day by day. The producer needs to
maintain long-term relationships with customers to survive in such a competitive
environment. In the current literature, price is found to be an important factor in these
relationships, but other factors such as product and service quality are also important in
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determining repurchase intention (Giovanis et al., 2013). Consumers in today’s world are
strongly influenced by the mass media, which influence consumer thinking through emotions,
needs, wants, and demands. Enterprises and business leaders are spending billions of dollars
on consumer research to identify and analyze the factors influencing consumer decisions;
such analysis helps to detect the orientation of consumer behavior (Thapa, 2012).

In today’s digitalized world, companies are changing from brick organizations to click
organizations. Because of this, a number of challenges have sprung up in attracting potential
customers. Once a customer visits a particular e-marketplace, the challenge for the e-retailer
is how to persuade that customer to repurchase from the same platform. E-loyalty has become
an important issue in the recent literature of e-commerce because of the potential benefits for
e-business. E-loyalty means that a customer will revisit or repurchase from the same website
and is defined as “a customer’s commitment and favorable attitude toward online companies”
(Safa, 2014, p. 178).

Repurchase intention is “the subjective probability that a customer (i.e. experienced

customers) will continue to purchase a product from the same online seller” (Chiu et al.,
2012, p. 5). Constructs such as service, security, and internet flexibility of e-commerce
develop trust between the consumer and e-commerce websites. If an organization can build
trust among existing customers, it develops the scope of consumer repurchase intention
(Porter, 1974). The work of Schoenbachler (2004) recognizes loyal buyers whose purchasing
decision is independent of the price; these buyers invest money in the brand and get
satisfaction from their decision. Repurchase intention is a psychological behavior and one of
the main drivers that motivate buyers to continue buying products or services. The work of
Fishbein and Ajzen (1975) demonstrates relations between cognition, intention, and behavior,
as evidenced in the theory of reasoned action (TRA). According to TRA, “intentions are
 jointly determined by the person’s attitude and subjective norm concerning the behavior” (Al-
Gahtani and King, 1999, p. 278). The intention to purchase can also be categorized as one of
the measures of customer cognitive behavior, and it indicates how a customer intends to
purchase a particular product or service. The work of Mikhailitchenko et al. (2009) proposes
a construct of customer trust in buying a specific brand; this can be taken as a measure of the
repurchase intention of the consumer. The trust factor can enhance consumer interest as part
of the complete decision-making process in determining intention to buy.

This study attempts to build an empirical model to develop a relationship between the
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constructs of security, privacy concerns, trust, EOU, and repurchase intention. The literature
shows that security, privacy concerns, trust, and EOU may lead to e-satisfaction for
consumers, and hence repurchase intention may be increased (Palvia, 2009; Ismail and Safa,
2014). In this study, the mediation effect of e-satisfaction is also analyzed.

Theoretical Background and Conceptual Model

To fully understand customers’ purchasing behavior, it is important for e-businesses to

develop knowledge not only of customer perceptions of technology but also of important
attributes of technology that may give high satisfaction levels in the context of online
purchasing. Trust is another construct that plays a crucial role in creating an intention to
repurchase (Baptista and Oliveira, 2015). With the increasing popularity of e-business
platforms, the perception of consumers is constantly changing, given the rapid development
of the technologies used by information systems, such as important website features and
functionalities, internet design, and internet security. Hence, there is a strong need for e-
businesses to invest heavily in research to encourage consumers’ continuous repurchase
intention from the same website.

The work of Davis (1989) suggests a Technology Acceptance Model (TAM), based on the
theory of reasoned action (TRA), which develops the idea of user acceptance of information
technology and systems. According to this model, perceived usefulness and perceived EOU
are the leading factors in determining a user’s intention to embrace the information
technology and systems (Davis, 1989). The TAM model is one of the popular frameworks
widely used in information systems research in conjunction with various other factors to
create new frameworks (Wen et al., 2011). The work of Moon and Kim (2001) and of Shin
(2007) incorporates the TAM model to identify the continuation of consumer intention to
adopt certain information systems.
 The work of Bhattacherjee (2001) proposes an expectation-confirmation model (ECM) that is
an extension of expectation-confirmation theory (Oliver 1980). This model examines the
continuous intention of the user and focuses on post-acceptance constructs. A number of
studies have used the ECM model as an information system and confirm that it is one of the
most effective models for analyzing continuous intention in online shopping (Lee, 2010; Lee
and Kwon, 2011; Thong et al., 2006).

Other factors, such as trust, enjoyment, and social/psychological factors (Teo et al., 1999),
are involved in the repurchasing decisions of consumers through the internet. Nowadays,
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online businesses are spending a lot of time in researching activities to develop mutual trust
with their customers so that they can have sufficient confidence in carrying out online
transactions when attracted to a product (Aren et al., 2013; Gefen et al., 2003; Hassanein and
Head, 2007). Enjoyment is also seen as an important factor in repurchase intention when
using technology. Research by Teo et al. (1999) found that perceived enjoyment is a personal
motivator and has an insignificant effect on the diversity of internet usage. E-businesses are
working to create a pleasant online shopping environment to provide their customers with
intrinsic motivation, which may lead to repurchase intention. In this study, trust is taken as
one of the factors, along with repurchase intention, that influences e-satisfaction.

According to the technology task fit (TTF) model, the user tends to use the technology that
can efficiently execute routine tasks. Hence, the intention to adopt new information systems
depends significantly on the user’s routine tasks. The TTF model explains that user
perception of the technology is not by itself enough to create acceptance of new information
systems (Goodhue and Thompson, 1995). TTF has been widely used in the literature to
determine user behaviors in technology acceptance as well as pre- and post-adoption
continuation (Afshan and Sharif, 2016b; Oliveira et al., 2014; Wen et al., 2011; Yuan et al.,
2014; Zhou et al., 2010). According to these studies, TTF is an effective combination of the
TAM and ECM models for appreciating user intention to adopt technology and to continue to
shop online from the same e-business platform. The current study incorporates trust, EOU,
security, privacy, and e-satisfaction in the context of online shopping repurchase intention.
The proposed model is shown in Figure 1.

INSERT FIGURE 1 HERE

 Conceptual Model and Construction of Hypotheses

Repurchase intention is a decision reached by consumers to substantiate a brand in order to

purchase something, neglecting other options. In a traditional scenario, consumer satisfaction
is widely influenced by the service given by a salesperson, but in the context of online
shopping, the impersonal customer interface has become the source of a potential customer’s
information, heavily influencing the intention to buy. The customer interface plays an
important role in generating an intention to purchase and, consequently, impacts on the
overall financial performance of an e-business. Additionally, consumer attitudes toward and
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acceptance of online security influence repurchase behavior. This may be because the
salesperson concept does not exist in an online platform, and consumers rely on online
payment options that increase their perceived risk. Thus, lack of security is the biggest
obstacle to online business, with research showing that perceived security is a vital factor in
consumer online purchase decisions (Liu et. al. 2004). Security is the key concern of
consumers in making a purchase online; they look for an authentication mechanism used by
an e-business as a measure of trust (Bart et al., 2005). Some e-commerce research has
established trust as an important factor in consumer behavior in online purchasing (Keen et
al., 1999). A number of studies have examined the privacy concerns of customers and how
they influence repurchase intention. These studies have looked at which attributes (security
and/or privacy) of online platforms reduce the risk perceived by consumers and how these
attributes can be addressed on a company’s site (Dayal et al., 1999; Woodlock, 1999/2000).

Security

One of the major concerns of e-business is security. It is defined as a “circumstance,

condition, or event with the potential to cause economic hardship to data or network
resources in the form of destruction, disclosure, modification of data, denial of service, and/or
fraud, waste, and abuse” (Kalakota and Whinston, 1996, p. 123). Online consumers are
always reluctant to disclose their personal and financial credentials without security
satisfaction. To develop high-level security satisfaction, online business organizations must
develop security features (encryption, security statement, third-party affiliation, etc.)
(Jarvenpaa and Todd, 1996). Security can affect online customer trust. The focus for e-
commerce is security of computers, credit cards, and financial information (Bart et al., 2005).
The perception of online consumers is that online modes of payment are not always secure
and that data can be captured (Jones and Vijayasarathy, 1998). This reduces consumer trust
 and satisfaction levels, leading to reluctance to disclose personal information for online
purchases.

As an important factor in online repurchase intention, security concerns depend upon various
online technical components, such as cryptography, digital signatures, and certificates that
allegedly protect consumers from fraudulent activities such as online hacking and “phishing”
(Ranganathan and Ganapathy, 2002; Yousafzai et al., 2003; Kim et al., 2008; Lian and Lin,
2008). The acceptance of an online platform for shopping is highly dependent on the
consumer’s subjective perception of risk during online shopping rather than on the objective
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security of the electronic channel as a transactional medium (Klang, 2001; Grabner-Kräuter

and Kaluscha, 2003). Hence, e-commerce businesses should take care of security
mechanisms in such a fashion that consumers can start believing in the e-retailer and feel
confident that their subjective risk has been minimized.

Furthermore, because of certain features such as a lack of physical and real-time contact,
consumers are more sensitive to security when shopping online (Hartono et al., 2014; Kim et
al., 2011). The work of Hartono et al. (2014) states that a website with a higher level of
security can prevent its consumers from experiencing financial losses due to security issues
(e.g. credit card information leaks). This ability to protect users from potential security threats
may be perceived as a long-term benefit by users. A high level of perceived security is also
believed to bring more comfort to users (Hartono et al., 2014); they can experience greater
EOU when they feel more comfortable with the technology (Usoro et al., 2010). Trust in the
services of e-businesses can be improved by reducing the security risk perception of their
consumers. These observations lead to this study’s first hypothesis (H1).

H1: Security concerns significantly impact online repurchase intention.

Trust

According to a study by Mayer et al., (1995, p. 712), trust is “the willingness of a party to be
vulnerable to the actions of another party based on the expectation that the other will perform
a particular action important to the trustor, irrespective of the ability to monitor or control that
other party.” Development of online business trust is the key to building a good relationship
with consumers. However, consumers have diminishing trust in online retailers, especially
where small or niche stores are concerned. Customers rely on well-known brands such as
Amazon, Flipkart, and other giants, but they do not show the same level of trust in small
 online shops. Therefore, if an online business is to be appealing to a niche market, it should
work hard to gain customer trust.

The current literature states that behavioral intention to purchase is significantly impacted by
trust and commitment. A consumer who trusts in a particular e-retailer frequently
recommends that retailer to other customers. Hence, a positive relationship between trust,
commitment, and word of mouth can be identified. If a customer has positive trust in a
particular e-marketplace, he or she will be comfortable in purchasing from the same website.
A study by Churchill (1999) identifies a significant positive relationship between trust and
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the behavioral intention of consumers; this leads to initial and repurchase intention as well as
promising word of mouth recommendations.

Many studies demonstrate the importance of trust as a key ingredient in a successful

relationship (Chou et al., 2015; Ku, 2012). Trust plays a crucial determining role in both
initial usage (Gefen et al., 2003; Lim et al., 2006; Pavlou and Gefen, 2004) and maintenance
(Flavian et al., 2006; Dagger and O’Brien, 2010; Agustin and Singh, 2005). The relationship
between trust and loyalty is confirmed by numerous studies (Liu et al., 2011; Ha et al., 2010).
For example, the work of Bart et al. (2005) claims a strong positive relationship between
online trust and behavioral intent. A study by Cyr (2008) also claims that trust positively
influences loyalty in a large sample of mixed cultures. Thus, it is expected that trust in an
online shopping platform will play a crucial role in developing repurchase intention and
intention to recommend. These perceptions lead to this study’s second hypothesis (H2).

H2: Trust significantly impacts online repurchase intention.

Ease of Use

EOU is defined as “the degree to which an individual believes that by using a particular
technology would be free of effort” (Davis, 1989, p. 320). According to the same study, EOU
has a strong influence on technology acceptance. If a technology is easy to use, it will
become the preferred option. The TAM proposed in a 1989 study by Davis suggests that
EOU has an indirect effect on attitude intention, but this effect is due to the high indirect
mediation effect of perceived usefulness (Davis et al., 1989; Igbaria et al., 1995). In research
by Van der Heijden et al. (2003) and Ma’ruf (2006), a negative and significant relationship
between perceived risk and attitude toward online shopping was identified; this means that, as
perceived risk goes up, the positivity of consumer attitudes toward online shopping will go
down. If technological difficulties are significant in using online marketplaces, then
 consumer repurchase intention will surely be affected. These suggestions regarding online
EOU lead to this study’s third hypothesis (H3).

H3: Online EOU significantly impacts repurchase intention.

Privacy Concerns

Privacy can be understood as the “willingness of consumers to share information over the
Internet that allows purchases to be concluded” (Belanger et al., 2002, p. 248). Privacy
generally concerns the personal information of an individual online. To tackle privacy
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concerns, online retailers can develop privacy policies in terms of notice, disclosure, and
preference/consent of online consumers (Bart et al., 2005). Bennassi (1999) suggests that
some privacy concerns, such as the requirement for secure authentication via third parties or
rules and regulations created by an effective e-business infrastructure, may gain the trust of
consumers in the online marketplace. A number of studies have identified the high impact of
privacy on online intention to purchase and repurchase (for example, Cranor et al., 1999). It
has been noted that, even if e-retailers adopt scientific solutions to privacy concerns from the
technological and legal perspectives, consumer perceptions around privacy nevertheless
demand the highest level of trust to enable them to make transactions online (Pavlou and
Chellappa, 2001). Although huge investments are made to tackle privacy concerns (such as
controlling consumer information and taking responsibility for the effective use of cookies
and other technologies including privacy seals, authentication methods, and encryption), it is
still not certain that these investments significantly impact on consumer perceptions of
privacy regarding online purchasing.

The work of Klang (2001) suggests that, although the growth of technological and legal
methods to secure payments and identity protection has increased in the recent past, its
impact on electronic transactions has been disappointing. Another risk involved in online
transactions is having personal identification handed over to, or stolen by, third parties who
use this information to spam consumers. Although the outcome of a breach of privacy might
not be as critical as a loss of financial data, it causes distrust on the part of consumers toward
online stores. This lack of trust can affect consumer repurchase intention. This leads to the
fourth hypothesis of this paper (H4).

H4: Privacy concerns significantly impact repurchase intention.

 E-satisfaction

E-satisfaction is best understood from the following definition: “the contentment of a

consumer with respect to his or her prior purchasing experiences” (Anderson and
Srinivasanin, 2003, p. 125). In research into e-commerce in the fields of information systems
and market research, there has been much focus on reassessing customer satisfaction with
internet shopping. However, the impact of customer satisfaction and its consequences remain
open to question, even on internet shopping platforms (Evanschitzky et al., 2004).

Consumer satisfaction is the “consumer’s fulfillment response,” and “a fulfillment, and hence
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a satisfaction judgment, involves at the minimum two stimuli: an outcome and a comparison
referent” (Oliver, 1999, p. 14). In the same context, it has been suggested that e-satisfaction is
an e-retail experience of a consumer as compared to a traditional marketplace experience
(Szymanski and Hise, 2000).

E-satisfaction can mediate between its antecedents and consumer repurchase decisions from
the same e-retailer. Factors such as security, privacy concerns, trust, and EOU can be the
source of a consumer’s e-satisfaction; hence, e-satisfaction can mediate the relation between
these factors and repurchase intention. This leads to the remaining four hypotheses of this
study (H5–H8).

H5: E-satisfaction mediates the relationship between security and repurchase intention.

H6: E-satisfaction mediates the relationship between trust and repurchase intention.

H7: E-satisfaction mediates the relationship between EOU and repurchase intention.

H8: E-satisfaction mediates the relationship between privacy concerns and repurchase
intention.

Research Methodology

In this research, an abductive approach is incorporated that follows the procedure from
observations to results. In an abductive approach, the research process starts with “surprising
facts” or “puzzles,” and the research process is devoted to their explanation (Bryman and
Bell, 2015). This type of research is recommended for studies where a particular framework
has to be constructed and analyzed; it leads to better description of phenomena within the
framework based on certain theories and to better examination of a new perspective (Kovács
and Spens, 2005). With this research methodology, new insights for the betterment of e-
 commerce can be formulated and described. A flow chart showing the stages in this
methodology is given in Figure 2.

INSERT FIGURE 2 HERE

Data Collection

This study aims to test the relations of the constructs of security, privacy concerns, trust, and
EOU with repurchase intention. This research also tests the mediation effect of e-satisfaction
on the above relations. To test the empirical model based on the formulated hypotheses H1–
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H8, a detailed self-structured online questionnaire was developed, incorporating pre-existing

scales from relevant literature. The questionnaire consisted of 22 questions, with responses on
a five-point Likert Scale (1 indicates very low and 5 indicates very high).

The survey was self-administered by students at universities in northern India. The rationale
behind this method was the assumption that Gen Y, aged between 20 and 35 years, are the
most frequent customers in the online marketplace. The online questionnaire was used to
gather information via an online platform. A survey questionnaire link was developed and
sent as an invitation to potential participants. The online questionnaire took the form of web
pages, with participants receiving information about the length of the questionnaire. The
students were not incentivized for participating. A diversified sampling method was
incorporated to mitigate sampling bias. An email communication was sent to students who
are well known to the authors with a request to circulate the same questionnaire around their
circle of friends, thus creating a snowball sample.

The online survey method is cheap and efficient; hence, invitations were sent to all possible
email addresses, meaning that responses could be collected easily without any restrictions. A
maximum number of interested participants could thus be reached to mitigate the risk of
sampling bias. Approximately 1,000 participants received the online questionnaire link, and
350 responses were collected, giving a response rate of 35%. Subsequently, responses were
analyzed in order to discard incomplete or incorrectly filled responses. As a result, 309
responses were retained to test the empirical model, giving an amended response rate of
30.9%.

The overall age band of the respondents was 20–35. Their profiles were further subdivided by
age, gender, education, marital status, years of experience, shopping platforms used, mode of
 payment, and the amount they were willing to pay. Table 1 summarizes the respondent
profiles.

INSERT TABLE 1 HERE

Data Analysis Approach

The analysis was performed using IBM SPSS 20.0 and AMOS 20. With the help of
Confirmatory Factor Analysis (CFA), the model under study was checked by looking at its fit
indices. The measurement model describes how various items define various measures. Fit
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indices—normed fit index (NFI), goodness-of-fit index (GFI), adjusted goodness-of-fit index
(AGFI), and root mean square of approximation (RMSEA)—were calculated. Acceptable
values of RMSEA are equal to or less than 0.05; for NFI, GFI, and AGFI, acceptable values
are in the range 0.80–0.99. Pearson correlation was used to identify relationships among the
variables, with hierarchical multiple regression used to address the hypotheses under study.

Confirmatory Factor Analysis

The means, standard deviations, and correlations between the variables under study are given
in Table 2. After conducting CFA on the measurement model, the following results of fit
indices were obtained: χ2/degree of freedom (df) = 2.041, GFI = 0.963, NFI = 0.950, AGFI =
0.951, and RMSEA = 0.038; this shows a good model fit. As shown in Table 3, all measures
reported composite reliability (CR) values above 0.7, demonstrating the reliability of the
measures. The loadings of all the items were found to be significant, and no item was
dropped. Significant factor loading and high CR indicate convergent validity (Anderson and
Gerbing, 1988). To be specific, AVE should be above the 0.5 level but less than the
respective CR (Hair et al., 2010); this holds true in the case of this study. For discriminant
validity, the square root of AVE should be more than the coefficients of correlation with
other constructs (Fornell and Larcker, 1981); this is confirmed in Table 2.

INSERT TABLE 2 HERE

INSERT TABLE 3 HERE

Hypothesis Testing

Hierarchical Multiple Regression Analysis

 To test hypotheses H1–H4, hierarchical multiple regression was carried out. Table 4 shows
the results of the regression analysis. All the independent variables and the mediator were
regressed with the dependent variable, keeping gender, duration of use, and mode of payment
as control variables. As hypothesized in H1, security positively influenced repurchase
intention (β = 0.286, p < 0.001, Model 1). Trust positively influenced repurchase intention
(β = 0.268, p < 0.001, Model 4). EOU positively influenced repurchase intention (β = 0.364,
p < 0.001, Model 7). Privacy concerns positively influenced repurchase intention (β = 0.441,
p < 0.001, Model 10). These results support H1, H2, H3, and H4.
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INSERT TABLE 4 HERE

INSERT TABLE 5 HERE

Mediation Analysis

Four mediation effects are proposed in this paper as H5–H8. To test them, Baron and
Kenny’s (1986) conditions to check for mediation were used: first, the independent variable
(IV) should be related to the dependent variable (DV); second, the IV should be related to the
mediating variable; and third, the mediating variable should relate to the DV.

H5 proposed that e-satisfaction mediates between security concerns and repurchase intention.
To test for mediation, the three conditions of Baron and Kenny (1986) were introduced.
Security concerns (IV) significantly influenced repurchase intention (β = 0.286, p < 0.001,
Model 1); security concerns (IV) also significantly influenced e-satisfaction (β = 0.363,
p < 0.01, Model 2); e-satisfaction influenced repurchase intention (DV) (β = 0.197, p < 0.001,
Model 3). Fulfillment of these conditions indicates mediation by e-satisfaction. The influence
of security on repurchase intention became insignificant with the introduction of e-
satisfaction (β = 0.158, p > 0.05, Model 3); this indicates full mediation by e-satisfaction,
rendering full support to H5.

H6 proposed that e-satisfaction mediates between trust and repurchase intention. To test for
mediation, the three conditions of Baron and Kenny (1986) were introduced. Trust (IV)
significantly influenced repurchase intention (β = 0.268, p < 0.001, Model 4); trust (IV) also
significantly influenced e-satisfaction (β = 0.290, p < 0.001, Model 5); e-satisfaction
influenced repurchase intention (DV) (β = 0.197, p < 0.001, Model 6). The fulfillment of these
conditions indicates mediation by e-satisfaction. The influence of trust on repurchase
 intention became insignificant with the introduction of e-satisfaction (β = 0.138, p > 0.05,
Model 6), implying full mediation by e-satisfaction. H6 is thus supported.

H7 proposed that e-satisfaction mediates between EOU and repurchase intention. To test for
mediation, the three conditions of Baron and Kenny (1986) were introduced. EOU (IV)
significantly influenced repurchase intention (β = 0.346, p < 0.001, Model 7); EOU (IV) also
significantly influenced e-satisfaction (β = 0.345, p < 0.01, Model 8); e-satisfaction influenced
repurchase intention (DV) (β = 0.197, p < 0.001, Model 9). Fulfillment of these conditions
indicates mediation by e-satisfaction. The influence of EOU on repurchase intention
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remained significant but reduced significantly with the introduction of e-satisfaction

(β = 0.214, p < 0.001, Model 9); this implies partial mediation by e-satisfaction. H7 is
therefore partially supported.

H8 proposed that e-satisfaction mediates between privacy concerns and repurchase intention.
To test for mediation, the three conditions of Baron and Kenny (1986) were introduced.
Privacy concerns (IV) significantly influenced repurchase intention (β = 0.441, p < 0.001,
Model 10); privacy concerns (IV) also significantly influenced e-satisfaction (β = 0.262,
p < 0.001, Model 11); e-satisfaction influenced repurchase intention (DV) (β = 0.197,
p < 0.001, Model 12). Fulfillment of these conditions indicates mediation by e-satisfaction.
The influence of privacy concerns on repurchase intention remained significant but reduced
significantly with the introduction of e-satisfaction (β = 0.344, p < 0.001, Model 12). This
indicates partial mediation by e-satisfaction, thus rendering partial support to H8.

To understand which independent variable had the best model fit, fit indices were calculated
using AMOS 20. Table 5 shows that the model with security as IV had the best model fit
indices.

Discussion and Research Implications

The present study discusses the consequences of security, privacy concerns, trust, and EOU
on consumer repurchase intention in the context of business-to-consumer online commerce. It
also examines the mediating role of e-satisfaction between those relations. Table 6
summarizes the hypotheses and outcomes of this study. Figure 3 provides the results for the
various links investigated.

INSERT TABLE 6 HERE

INSERT FIGURE 3 HERE

 This research has a very important implication, namely that the presence of privacy features
is highly desirable for the consumer. This may be due to recent terrorist attacks on the web in
terms of hacking and stealing the credentials of many individuals; these attacks may account
for increased consumer desire for strong privacy. The presence of security was also important
to the participants in the study. This paper validates previous work which indicates that
trusted and secure websites focus on building trust with their consumers (Kuchinskas, 1999).
Since third-party seal has been seen in the literature as an important segment of third-party
verification, the outcome of this research demonstrates and validates the desire for privacy
and security among Gen Y in India. Although privacy concerns are seen in the present study
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to be more important than security concerns in generating repurchase intention, security

concerns in conjunction with other privacy concerns have a high correlation; hence a
requirement for one of these features automatically leads to a desire for the other features. E-
businesses with concerns around implementing security or privacy features on their websites
should concentrate all their efforts regarding security and privacy on the points discussed in
this study.

This study also demonstrates that trust is an important factor in repurchase intention. It is
important for successful e-businesses in the online marketplace to understand how trust can
be developed with their potential customers and what antecedents of trust can affect
repurchase decisions. On the basis of an extensive literature review, this study took the
drivers of trust in the presented empirical model and validated their effect on repurchase
intention in the context of Gen Y in India. The findings reveal that trust is an important factor
in creating customer satisfaction with online shopping and, consequently, in enhancing
repurchase intention.

In the TAM model (Davis, 1989), perceived EOU was taken as an important predictor of
technology acceptance. In this research, online EOU has been taken as a predictor of
repurchase intention, and the results show that if a consumer is aware of the benefit of
technology and can use it easily, then the repurchase intention of that customer may be
enhanced. Although the relationship between EOU and repurchase intention was not very
strong in the sample in this study, a positive significant relation was nevertheless identified.
Vendors in the e-marketplace are therefore advised to add user-friendly features to their
websites, so that consumers can easily learn to operate the technology and so that intention to
purchase and repurchase from the same website can be created.
 Although a number of studies have examined the importance of e-satisfaction in explaining
intention to purchase in the context of first-time purchase, the literature review in this
research identifies that e-satisfaction in the repurchase context has not been examined
extensively. This study develops an empirical model to examine the role of e-satisfaction in
security, privacy concerns, trust, EOU, and repurchase intention; it creates generalizability
from empirical validation through a single-country setting (India). This study reveals that
security, privacy concerns, trust, and EOU alone might not be enough to stimulate repurchase
intention. Instead, e-satisfaction is a key mediator between the variables of security, privacy
concerns, trust, EOU, and repurchase intention in the empirical model under study. This
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output is important for understanding the mechanism in the consumer decision-making

process through which the actions of online retailers influence repurchase decisions.
Familiarity with this mechanism reveals important information on which e-retailers can base
decisions about how and where to invest resources in their attempts to drive repurchase
intention.

This research asserts that e-satisfaction is influenced by security, privacy concerns, trust, and
EOU in the online marketplace. In addition, it reveals that e-satisfaction in the e-marketplace
fully mediates the relation between security and repurchase intention and the relation between
trust and repurchase intention; e-satisfaction also partially mediates the relation between
EOU of the website and repurchase intention and the relation between privacy concerns and
repurchase intention.

Scientific and Social Implications

The present research focuses on students aged between 20 and 35 from universities in
northern India. The rationale for choosing such a sample is the frequency with which they use
online platforms. All the implications suggested in this research are based on this sample
alone. Table 6 summarizes the outcomes of the hypotheses formulated in this research. The
corroboration of hypothesis H1 emphasizes that the biggest concern of Gen Y in India is
security of the online platform. Gen Y is tech-savvy and knows the different security features
involved in e-commerce. If they feel that the online transaction and security features of a
particular website are not satisfactory, they will switch to a different platform. To increase
Gen Y repurchase intention, vendors, especially those from India, should build strong
security features into their online portals, such as HTTP protection, firewall protection, SSL
 certificates, web-servers, PHP control, and a trusted payment gateway. In addition, regular
security audits should be carried out to monitor all security features.

The support for hypothesis H2 suggests that trust in the website portal is also a key factor in
the repurchase intention of Gen Y in India. Hence, online vendors are advised to build up
trust with their customers with respect to providing efficient and timely service and to
maintain good relationships with customers by providing popular offers and deals. The
support for hypothesis H3 suggests that easy use of a particular website encourages the group
to repurchase from the same web portal. Hence, online vendors should provide
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straightforward features and a simple user interface on their website. A simple, secure
payment gateway also generates transactions and motivates the customers in this group to
repurchase.

The other factor that influences the repurchase intention of the Gen Y in India is privacy
concerns (H4). It is recommended that online vendors should devise policies for their users so
that trust in their online platform can be developed. They should also implement robust
policies related to the use of the personal information of customers; vendor practice in terms
of personal information security should be clearly communicated to users.

It is also proposed that a high level of satisfaction with a particular website is extremely
important. The confirmation of hypotheses H5–H8 suggests that e-satisfaction either partially
or fully mediates the relationship between repurchase intention and the four factors above.
The vendor should try to maintain e-satisfaction in customers by including attractive features
such as product recommendations, special offers, gifts, and discount coupons. Outstanding
service and excellent product quality minimize the risk of losing customers from the website.

Conclusion

This research shows that privacy concerns, security, trust, and EOU are the most important
factors to consider in enhancing consumer repurchase intention. This research also tests the
mediation effect of e-satisfaction, and the results show that e-satisfaction mediates all the
relationships significantly. The findings of this research demonstrate that hypotheses H1-H4
were supported. The relationship between repurchase intention and privacy concerns is strong
(β = 0.441, p < 0.001) in comparison to other relations. The other strong relation emerging
from this study is that between repurchase intention and EOU (β = 0.364, p < 0.001). The
other two relations, between security and repurchase intention (β = 0.286, p < 0.001) and
 between trust and repurchase intention (β = 0.441, p < 0.001), are positive and significant. In
addition, e-satisfaction was identified as a mediator between all the relations tested in this
research. The full mediation effect of e-satisfaction is seen between security and repurchase
intention and between trust and repurchase intention; partial mediation is noted between EOU
and repurchase intention and between privacy concerns and repurchase intention.

As discussed above, the explanatory power of the proposed model is good, but to enhance
this work, other variables could be incorporated. Although the relationship status of the
empirical model suggests strong links between repurchase intention and the factors of
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security, trust, EOU, and privacy concerns, the online shopping behavior of the group in the
study tends to be driven more by other variables. As with any study, there are some
limitations. The sample in this research was restricted to Gen Y students with a high level of
education at universities in northern India. Hence, future research should include working
adults as respondents and should analyze other variables related to online shopping behavior.

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 Table 1: Respondent Profiling

Items Characteristics Frequency Percentage

Gender Male 170 55

Female 139 45

Age 20-25 years 264 85

26-30 years 19 6
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31-35 years 26 9

Education Diploma 19 6

Graduated 210 67

Post Graduates 80 27

Marital Status Single 270 87

Married 39 13

Years’ experience between 1-5 86 28

years

Less than 1 6 2
month

More than 5 217 70

years

Platform for Shopping Amazon 159 51

Flipkart 64 20

Jabong 19 6

Myntra 47 15

Paytm 20 7
 Mode of Payment Bank Transfer 9 3

COD 151 48

Credit Card 34 11

Debit Card 105 33

Online Wallets 10 3

Amount willing to pay Rs.0-Rs.500 14 4

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Rs.500-Rs.1000 46 15

Rs.1000- 79 25
Rs.1500

More than Rs. 170 55

1500

Table 2: Descriptive Analysis, correlations and Discriminant validity

Mean S.D. 1 2 3 4 5 6

Trust (1) 3.644 0.873 0.772

Ease of use (2) 3.836 0.692 0.689* 0.723

Privacy concern (3) 3.707 0.751 0.516** 0.548** 0.789

E-Satisfaction (4) 3.757 0.731 0.417** 0.445** 0.533** 0.743

Repurchase intention (5) 4.388 0.959 0.284** 0.495** 0.510** 0.316** 0.745

Security (6) 3.940 0.932 0.488** 0.691** 0.659** 0.454** 0.348** 0.780

Note: ** indicates significance level of 0.01 (two-tailed); the italics numbers in end of each row are square roots of
AVE;

Table 3: Table of Convergent Validity

 Construct Indicators AVE MSV ASV Factor CR
Loading

Security 0.608 0.477 0.295 0.754

(Belanger How important are security 0.700

et al 2002) features in your decision to
purchase from the online
marketplace?
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How important is third-party 0.852

payment gateway security in
your decision to purchase
from the online marketplace?

Trust 0.597 0.475 0.247 0.815

(McKnight Based on your experience,

and you know that vendors
Chervany, selling products/services
2001) using online platform care
about their customers.

0.838

Based on your experience,

you know that vendors
selling products/services
using online platform are
opportunistic.

0.801

Based on your experience,

you know that vendors
selling products/services
using online platform are
honest 0.668
 Ease of Use 0.522 0.477 0.339 0.867

(Moore and You would find online

Benbasat, marketplace easy to use 0.810
1991;
You believe it is easy to get
Davis
the website to do what you
1989;
want it to do. 0.703
Davis et al.
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1989) You find online transaction

simple while doing web
shopping 0.637

Purchasing from the online

marketplace would be easy
for you. 0.658

Your Interaction with the

online systems would be
clear and understandable 0.795

It would be easy to become

skilful by using online
platform. 0.715

Privacy 0.623 0.434 0.309 0.832

Concern

(Belanger How important are third-

et al, 2002; party privacy assurance in
Chellappa, your decision to purchase
2008) online?
0.785

How important is the content

of the privacy policy
0.758
statement in your decision to
 purchase online?

Do you believe that you have

control over how the
information you provide will
be used by this store?
0.824

E- 0.552 0.284 0.192 0.860

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Satisfaction

(Oliver, You are happy that you

1980) purchased from the online
marketplace 0.704

You are satisfied with your

decision to purchase from
the online marketplace.
0.703

If you had to purchase again,

you would feel differently
about purchasing from the
same online marketplace.
0.801

Your choice to purchase

from the same online
marketplace was a wise one 0.742

You feel badly regarding

your decision to purchase
from the same online
marketplace
0.76
 You think You did the right
thing by buying from the
same online marketplace. 0.81

Repurchase 0.556 0.260 0.161 0.714

Intention

(Esch et al., You would intend to

2006) repurchase from the same
online marketplace 0.72
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Your willingness to
repurchase products for
the same online
marketplace is high. 0.77

Notes: CR=composite reliability; AVE=average variance extracted; MSV=maximum shared variance;

ASV=average shared variance; DL=deleted variables due to factor loading <0.6; ***p-value<0.001

Table 4: Results of Hierarchical Regression Analysis

Independ Security as IV Trust as IV Ease of Use as IV Privacy concern as IV
ent
Variables

1 2 3 4 5 6 7 8 9 10 11 12

Controlle
d
variable

Gender .368* -.144 .391 .384* -.095 .391 .357* -.170 .392 .368 -.185 .386

Duration .166 .001 .166 .224 .086 .166 .299* .266 .244 .159* .116* .147

Mode of .148* .161 .122* .147* .156* .122 .139 .147 .109 .159* .189 .140
payment *

RI on .286*
 Security **

ES on .363
Security **

RI on ES .197*
**

RI on .158
Security-
controlle
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d for ES

RI on .268*
Trust **

ES on .290*
Trust **

RI on ES .197*
**

RI on .138
Trust-
controlle
d for ES

RI on .346*
Ease of **
use

ES on .345
Ease of **
Use

RI on ES .197*
**

RI on .214*
Ease of **
Use-
controlle
 d for ES

RI on .441*
Privacy **
Concern

ES on .262*
Privacy **
Concern

RI on ES .197*
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**

RI on .344*
Privacy **
Concern-
controlle
d for ES

F- Value 13.12 49.8 10.95 11.68 31.80 10.25 12.27 33.0 10.79 17.62 25.06 14.34
2 27 8 0 1 0 7 38 4 3 3 8

R Square 0.147 0.39 0.153 0.133 0.295 0.145 0.139 0.30 0.151 0.188 0.248 0.191
6 3

Adj. R 0.136 0.39 0.139 0.122 0.289 0.131 0.128 0.29 0.137 0.178 0.241 0.178
Square 1 6

Notes: ***p<0.001; **p<0.01; *p<0.05

Table 5: Model Fit Comparison

CMIN/df GFI AGFI NFI RMSEA

Security as IV 2.17 0.952 0.936 0.937 0.041

Trust as IV 2.23 0.911 0.918 0.913 0.053

Ease of Use as 3.126 0.898 0.919 0.914 0.049

IV

Privacy Concern 3.241 0.870 0.906 0.863 0.056

 as IV

Table 6: Summary of Hypothesis and Results

Hypothesis Description Results

H1 Security concerns significantly impact online repurchase intention Supported

H2 Trust significantly impacts online repurchase intentions Supported

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H3 Online Ease of use significantly impacts repurchase intention Supported

H4 Privacy concerns significantly impact repurchase intention Supported

H5 E-satisfaction mediates the relationship between security and repurchase Supported

intentions.

H6 E-satisfaction mediates the relationship between Trust and repurchase Supported

intention.

H7 E-satisfaction mediates the relationship between Ease of use and repurchase Partially
intention. Supported

H8 E-satisfaction mediates the relationship between Privacy concern and Partially

repurchase intention Supported
 Security

Trust
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Intention to
E-Satisfaction Purchase

Ease of Use

Privacy
Concern

Figure 1: Proposed Model

 Step 1: Step 2: Step 3:
Literature Survey Gap Analysis (Construct Online Questionnaire
formulation) Preparation
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Step 6: Step 5: Data Exploration Step 4:

Model building and Confirmation (EFA &
Primary Data Collection
(Multivariate Regression) CFA)

Hypothesis Conclusion and

Testing and Results Finding
analysis

Figure 2: Step by step research methodology

 Security
β=.138 (.268***)

β=.158 (.286***)

Trust
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β=.363***
Repurchase
β=.290*** E-Satisfaction β=.197***
Intention

Ease of Use
β=.345*** β=.344*** (.441***)

β=.262***

β =.214*** (.346***)
Privacy
Concern

Figure 3: Results