Asia Pacific Journal of Marketing and Logistics

Emerald Article: Analyzing key determinants of online repurchase intentions

Chai Har Lee, Uchenna Cyril Eze, Nelson Oly Ndubisi

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To cite this document: Chai Har Lee, Uchenna Cyril Eze, Nelson Oly Ndubisi, (2011),"Analyzing key determinants of online
repurchase intentions", Asia Pacific Journal of Marketing and Logistics, Vol. 23 Iss: 2 pp. 200 - 221
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APJML
23,2 Analyzing key determinants
of online repurchase intentions
Chai Har Lee
200 Multimedia University, Bukit Beruang, Malaysia
Uchenna Cyril Eze
Received December 2009 School of Business, Monash University, Bandar Sunway, Malaysia, and
Revised September 2010
Accepted October 2010 Nelson Oly Ndubisi
Griffith Business School, Griffith University, Gold Coast, Australia

Abstract
Purpose – The rapid changing internet environment has created a competitive business landscape,
which provides opportunities and challenges for a variety of businesses. One of these opportunities
includes conducting businesses online. Online transaction systems enable users to buy and make
payment for products and services using the internet platform. The purpose of this paper is to examine
the factors that may affect consumers’ intentions to repurchase products and services online.
Design/methodology/approach – The research framework is grounded in extended technology
acceptance model (TAM). The authors used survey questionnaire to collect 102 valid responses from
participants in Malaysia who must have made, at least, one previous online purchase. The snowball
approach was used to select the participants, to ensure that participants had previously purchased
online.
Findings – Data collected were analysed using regression model to determine the significance of the
relationship between the dependent and independent variables. The emerging results provide
significant evidence in support of the eight hypotheses proposed.
Research limitations/implications – One of the limitations of this research is the relatively small
sample size. Future research may use larger responses, as well as applying other relevant information
system (IS) models/theories. Nonetheless, the paper provides a synthesis of extant literature relevant to
the subject area, which is critical in addressing theoretical development in online-related purchase
research. In addition, the empirical results corroborate some of the existing literature, as well as
contribute to the advancement of the frontier of knowledge in the field.
Practical implications – This paper provides useful information for managing online businesses,
especially in developing key responses to consumers’ needs and in building critical capabilities to
enhance competitive position in the online marketplace.
Originality/value – This is one of the few studies on online repurchase intentions in Malaysia that
uses data from Malaysian consumers as well as an extended IS model. The extension of the
well-established TAM model by integrating additional variables provides researchers with a fuller
model, and more theoretical options in developing frameworks, which are relevant to the specific
context of the study – Malaysia.
Keywords Electronic commerce, Consumer behaviour, Internet marketing, Malaysia
Paper type Research paper

Asia Pacific Journal of Marketing and Introduction

Logistics The emergence of the internet has created opportunities for firms to stay competitive by
Vol. 23 No. 2, 2011
pp. 200-221 providing customers with a convenient, faster and cheaper way to make purchases.
q Emerald Group Publishing Limited
1355-5855
Purchasing via the internet is one of the most rapidly growing forms of shopping (Grunert
DOI 10.1108/13555851111120498 and Ramus, 2005). In principle, the internet can be used to facilitate purchase transactions
among all kinds of actors: among consumers, among businesses, between businesses and Online
consumers (Grunert and Ramus, 2005). Moreover, being a global medium, the internet repurchase
removes the many barriers to communication with consumers and employees created by
geography, time zones and location, enabling a “frictionless” business environment intentions
(Yu, 2006). Yu (2006) pointed out that it helps to simplify business operations, because it
allows companies to handle transactions electronically, thereby reducing their
dependence on agents and distributors. This process of disintermediation enables the 201
organization to deal directly with customers, eliminate or reduce middleman/agent’s cost
and ultimately reduce the final cost paid by customers. It also permits the organization to
improve feedback system and customer services by monitoring visits to their web site
(Yu, 2006). Firms have realised that it is easier and less expensive to venture into global
market or internationalize their activities via the internet. So, having an online store is no
longer an option for businesses, it is rather a necessity in this new digital economy,
especially for firms that intend to expand regionally. As in the traditional physical stores,
a critical measure of success factor for online stores is customers’ repurchase behaviour.
While new or first time customers are important to the firm, they are more expensive to
serve than existing or loyal customers are (Rosenberg and Czepiel, 1983). Thus, it is
important to determine the key drivers of online repurchase behaviour of Malaysia’s
internet shoppers.

Development of online shopping

Electronic retailing over the internet or online shopping first started in 1994 (Chua et al.,
2006). This new concept of retailing has captured the interest of many retailers and
merchants because of the recognition that online shopping will is considered as an
alternative channel alongside traditional offline retail channels such as physical retail
stores (Chua et al., 2006). The world wide web (WWW) has enabled numerous firms to
transform the challenges of the past into the opportunities of the future, not merely in the
context of marketing but more importantly as an efficient medium to nurture customer
relationships (Kim et al., 2009). Merchants tend to establish online storefronts as an online
retailing method when the product brand names and reputations are well established and
widely known among consumers (Chua et al., 2006). A good example is The Dell Online
Store that sells personal computers (The Economist, 1997) to consumers everywhere.
Owing to cultural, economic, societal and political factors, e-commerce development
will not be identical across countries (Yu, 2006). Internet retailing is one of the fastest
growing sectors in the UK, and is having significant effects on traditional retail
provision (Gunawan et al., 2008). According to Interactive Media Retail Group, internet
sales have continued to rise from £14.5 billion in 2004 to around £26 billion, in 2006,
which represents 10 per cent of total retail sales in the UK (Gunawan et al., 2008). The
actual number of internet shoppers has also grown; in 2006, approximately 26 million,
over half of UK adults, bought goods via the internet (Gunawan et al., 2008). In the case
of China, the development of e-commerce faces several difficulties (Yu, 2006). Internet
penetration among households in China lags far behind developed countries because
the access price is out of reach for many. The cost of access is much higher than it is in
the USA. A report by the China Internet Information Center (2004) shows that the
internet reached only about 7 per cent of the population in the middle of 2004.
A study by International Data Corporation Asia-Pacific, indicates that the future
forecast for online shopping in Malaysia looks bright and promising (Chua et al., 2006).
APJML Despite the statistics and success stories of many online merchants elsewhere, many
23,2 local firms, especially the smaller companies are apprehensive about online business.
Local companies appear to be lagging and tend to be afraid to venture into online
retailing. This is plausibly because internet commerce is still relatively new and there
are no hard and fast rules to follow, with no tried and tested business model to imitate
(Chua et al., 2006). It is important for Malaysian firms to have a good understanding of
202 the marketplace for their products and their target customers before engaging in online
retailing (Chua et al., 2006). With a good understanding of their target customers,
online retailers and entrepreneurs may be able to develop more effective and targeted
online retail operations that meet the requirements and expectations of their online
shopping customers (Chua et al., 2006).
Table I shows the total population of Malaysia and total number of internet users
from 2005 to 2008. The figure shows 47 per cent in year 2005, 50 per cent in year 2006,
53 per cent in year 2007 and 54 per cent in year 2008. The increasing rate of internet
diffusion indicates a growing opportunity for online businesses and for conducting
commercial transactions electronically. The internet generally helps to overcome the
challenges posed by distance and/or geographical boundaries to trade. As a result,
firms can target more customers with the help of the internet which has dramatically
reduced the constraints posed by distance between marketers and markets.
In Malaysia, however, despite the phenomenal growth in online retailing, a clear
understanding of the facilitators of online purchase intention of customers is still lacking
due largely to little research done within the Malaysia context. It is important for
researchers and practitioners especially those who run/manage online businesses to be
aware of the factors that encourage customers to repurchase from an online store.
Therefore, this paper aims to examine the key determinants of online repurchase
behaviour of Malaysian consumers. The expanded technology acceptance model (TAM)
was adopted as the underlying model and integrates perceived value, firm reputation,
privacy, trust, reliability and functionality in juxtaposition with the two most important
TAM constructs – perceived usefulness and perceived ease of use. These eight
determinants were measured and examined to understand their influences on
consumers’ online repurchase intentions in Malaysia.

Conceptual framework and hypothesis development

Figure 1 shows the research framework for this paper and illustrates eight independent
variables namely perceived value, perceived ease of use, perceived usefulness, firm
reputation, privacy, trust, reliability and functionality. We generated eight hypotheses
based on this framework to test the influence of each independent variable on online
repurchase intention. The TAM developed by Davis (1989) underpins the development of
this framework. The extended TAM model which integrates eight constructs altogether

Year 2005 Year 2006 Year 2007 Year 2008

Table I. Total population 26,127,700 26,640,200 27,173,600 27,728,700
Total population and Total no. of internet user 12,465,300 13,474,800 14,792,700 15,074,000
total number of internet
users in Malaysia from Sources: Total population – Department of Statistics, Malaysia; total number of internet user –
year 2005 to 2008 Worldbank, World Development Indicators
 Perceived value Online
repurchase
Perceived ease of use
intentions
Perceived usefulness

Online repurchase
Firm’s reputation
intentions
203
Privacy

Trust Figure 1.
Conceptual framework of
Reliability key determinants of online
repurchase intentions in
Functionality Malaysia

was adopted in this study to help understand the role of user process and outcome
orientations, firm reputation and customer confidence, as well as customer value in online
repurchase decisions. The next section discusses the hypotheses development.
Customers repurchase behaviour or intention is beneficial to the online business.
In some studies, repurchase intentions have been closely linked to customer loyalty
(Jiang and Rosenbllom, 2005). Both academics and practitioners recognize the
importance of loyal customers. They usually spend more, buy more frequently, have
more motivation to search for information, are more resistant to competitors’ promotions,
and are more likely to spread positive word of mouth (Jiang and Rosenbllom, 2005). Jiang
and Rosenbllom (2005) found, for example, that increasing customer retention rates by
5 per cent, increased profits by 25-95 per cent. They also argue that customer loyalty is
even more important in online channels, because acquiring customers on the internet can
be very expensive. In this study, we argue for the facilitating role of perceived value,
perceived ease of use, perceived usefulness, reputation, privacy, trust, reliability and
functionality in repurchase intentions of online customers.
Perceived value
Perceived value is the essential result of marketing activities and is a first-order
element in relationship marketing (Moliner et al., 2007). Research indicates that
perceived value has a direct and encounter-specific relationship with satisfaction
(Hume, 2008). Thus, consumers may cognitively integrate their perceptions of what
they get (benefits) and what they had to give up (sacrifices) in order to receive a certain
service (Ha and Janda, 2008). In addition, Hume (2008) also suggests that perceived
value is the most important indicator of repurchase intention. If a purchase offered a
high level of value, this would improve the customer’s level of return and repurchase in
future. In the context of retailing, Guenzi et al. (2009) found that merchandise value
perceptions mediate the impact of store environmental cues and store choice criteria
(e.g. merchandise quality) on store patronage intentions. Similarly, Guenzi et al. (2009)
found evidence that perceived value affects loyalty intentions. Based on the preceding
discussion, we develop Hypothesis 1:
H1. Perceived value will have a positive influence on customer online repurchase
intentions.
APJML Perceived ease of use and perceived usefulness are key constructs in the TAM (Davis,
23,2 1989) and have been researched in a number of contexts and among different users.
In Malaysia, Ndubisi et al. (2005) examined the role of the two constructs in information
systems (ISs) adoption by entrepreneurs and found to be instrumental. Perceived ease of
use in the context of this research refers to the extent to which a consumer believes that
online shopping will be free of effort (Chiu et al., 2009). The WWW is a medium that
204 allows users arbitrary connections in an open environment; within this environment,
users have computer skills ranging from novice to expert (Pearson et al., 2007). With all
the available web sites and the diverse set of user skills, what motivates users to choose
one site over another may lie in their ease of use perceptions. If a user finds a site difficult
to use, cannot find the desired product on a business-to-consumer (B2C) web site, or is not
clear on what a site offers, the user will typically leave that site (Pearson et al., 2007).
Web site design quality is crucial for online stores (Lee and Lin, 2005) and has strong
impact on user perception of ease of use. Web site design describes the appeal that user
interface design presents to customers (Lee and Lin, 2005). A recent empirical study
found that web site design factors are strong predictors of customer quality judgments,
satisfaction and loyalty for internet retailers (Lee and Lin, 2005).
According to Kim et al. (2009), online features that are customer centered have an
impact on online shoppers’ positive attitude toward the internet. Kim et al. (2007, 2009)
found that retail web sites with more customer-centered web attributes had higher
annual web sales and higher market shares than those retail web sites with fewer
customer-centered web attributes. In addition, Kim et al. (2007, 2009) indicate that the
buying environment characteristics of retail web sites impact the financial performance
of e-retailers, and many e-retailers under-perform in offering web service attributes that
can accommodate individual customers’ needs and facilitate online shopping. Thus,
when consumers perceive web site to be ease to use, it would affect their intentions to
repurchase in future. Hence, the following hypothesis:
H2. Perceived ease of use will have a positive influence on customer online
repurchase intentions.
Perceived usefulness is defined as the extent to which a consumer believes that online
shopping will enhance his or her transaction performance (Chiu et al., 2009). According
to Chiu et al. (2009), an individual is more likely to undertake continued usage when
such usage is perceived to be useful. Customers who have accomplished the shopping
task of product acquisition in an efficient manner will be more likely to exhibit stronger
repurchase intentions (Chiu et al., 2009). Prior research shows that perceived usefulness
has a significant effect on customer loyalty intention (Chiu et al., 2009). Perceived
usefulness has also shown to be an important determinant of ISs adoption in general
(Ndubisi et al., 2005; Davis, 1989). Hence, the following hypothesis:
H3. Perceived usefulness will have a positive influence on customer online
repurchase intentions.

Firm reputation
According to Hess (2008), firm reputation can be defined as customers’ perceptions on
how well a firm takes care of customers and is genuinely concerned about their welfare.
In addition, Hess (2008) revealed that excellent reputations provide firms with a
“buffering effect”, insulating them from some of the negative consequences of failures.
He argued that firm reputation moderated the relationship between failure severity and Online
satisfaction, lowered attributions of controllability and stability, and led to higher repurchase
repurchase intentions following service failures. Attributions of controllability and
stability were related only to repurchase intentions; satisfaction did not fully mediate intentions
these relationships. Given these previous research findings, it is likely that a good firm
reputation will also lead to greater online repurchase intentions. This analysis leads to
the next hypothesis: 205
H4. Firm reputation will have a positive influence on customer online repurchase
intentions.

Privacy
Privacy refers to the degree to which the online shopping web site is safe and protects the
customers’ information (Chiu et al., 2009). New technologies’ growing capacity for
information processing, plus its complexity, have made privacy an increasingly
important issue (Flavián and Guinalı́u, 2006). Consequently, consumer distrust is
increasing regarding how their personal data are being gathered and processed (Flavián
and Guinalı́u, 2006). In Malaysia, many buyers appear to be afraid to purchase products
and services online or to provide personal information online due to fears of lack of
privacy and possibility that online retailers will misuse their personal information. For
example, it has been shown that consumers will hesitate to shop online if they do not feel
assured that their credit card information is secured and protected from potential
hackers (Collier and Bienstock, 2006). Prior research on online shopping context
indicates that consumers’ perceptions of privacy have a significant and positive effect on
their trust in the online vendor (Chiu et al., 2009). The quantitative importance of this
issue is shown by Udo (2001), who points out that the protection of privacy is the greatest
concern of internet purchasers (Flavián and Guinalı́u, 2006). As such, if customers are not
sure of protection of privacy, they will be unwilling to repurchase online, but if privacy is
assured, they will be more willing to repurchase online as shown in Hypothesis 5:
H5. Privacy will have a positive influence on customer online repurchase
intentions.

Trust
Customer’s trust plays a fundamental role in maintaining long-term relationships with
the retailer. According to Chiu et al. (2009), in general, trust is viewed as a set of specific
beliefs dealing primarily with the benevolence, competence and integrity of another
party. Benevolence is the belief that the trustee will not act opportunistically against the
trustor, even given the opportunity (Chiu et al., 2009; Ndubisi, 2011). Competence is the
belief in the trustee’s ability to fulfill its obligations as expected by the trustor (Chiu et al.,
2009). Integrity is the belief that the trustee will be honest and will honour its
commitments (Chiu et al., 2009; Ndubisi, 2011). Customer’s trust implies that the good
intentions of the firm are not questioned by the consumer, that the promises made do not
generate uncertainties in the purchaser, and that the communication between the parties
is honest. Customer’s uncertainty can imply the potential for service failure and negative
outcomes therefore, trust becomes vital to long-lasting relationships (Eisingerich
and Bell, 2007). Lack of trust reduces the chances of buyers to engage in online
shopping because they are unwilling to deal with a vendor whom they do not trust.
APJML Indeed, prior research indicates that trust plays a pivotal role in driving customer
23,2 repurchase intentions (Chiu et al., 2009). The analysis leads to Hypothesis 6:
H6. Trust will have a positive influence on customer online repurchase intentions.

Reliability
Goode and Harris (2007) define perceived online reliability as the extent to which the site
206 consistently responds and functions as expected (without broken links, broken pages or
dead end links). According to Kim et al. (2009), service reliability is one of the major
e-service quality dimensions leading to overall customer satisfaction. In another study,
Ndubisi (2011) showed that service reliability leads to customer orientation and
satisfaction, and indirectly to loyalty which is mediated by satisfaction. It has been argued
that to attract new customers and to retain existing customers, the perceived reliability of
web sites is of pivotal importance (Goode and Harris, 2007). Goode and Harris (2007) found
that where existing customers find evidence of unreliable service or online performance
(for example, broken links, failed java script, scripting errors and missing graphics), such
shoppers will often leave the site, frustrated with the online provision. Thus,
commentators argue that where consumers’ perceive a site to be reliable, actual and
intended loyalty increases (Goode and Harris, 2007). Hence, Hypothesis 7 states as follows:
H7. Reliability will have a positive influence on customer online repurchase
intentions.

Functionality
Functionality deals with the extent to which a web site provides sufficient information
about the products/services being promoted (Law and Bai, 2008). In this study,
functionality of the web site can be defined as providing a time efficient and effective
delivery mechanism for online information (Yates, 2005). A web site is perhaps the only
way an online store communicates with its customers (Chang and Chen, 2008). The
greatest difficulty that consumers may face when using an organization’s web site is
actually locating the information they require or the transaction they wish to undertake.
The more difficult it is to do this, the less chance of consumers making a purchase or
considering future purchases via the web site. Thus, web site quality serves as the store
atmosphere and accordingly is a trustworthiness cue, especially at the beginning of
transactions (Chang and Chen, 2008). Therefore, customer will have more confidence to
repurchase from the online store if its web site is very functional (Table II). Hence,
the following hypothesis:
H8. Functionality will have a positive influence on customer online repurchase
intentions.

Methodology
The information and data for this research project were gathered from various sources:
primary and secondary data sources. The primary data are derived from
survey questionnaire. Survey questionnaires were used to obtain responses from
participants. We employed snowballing sampling method to select the participants for
this research. This was to ensure that the participants have used the internet to purchase
a product or service. Since, we were interested in participants’ willingness and ability to
repurchase products/services online, it was considered reasonable to collect data from
 Online
Variable names Description Sources
repurchase
Perceived value The essential result of marketing activities Moliner et al. (2007) and Oh (2003) intentions
and is a first-order element in relationship
marketing
Perceived ease The extent to which a consumer believes that Chiu et al. (2009) and Davis (1989)
of use online shopping will be free of effort 207
Perceived The extent to which a consumer believes that Chiu et al. (2009) and Davis (1989)
usefulness online shopping will enhance his or her
transaction performance
Firm Customers’ perceptions of how well a firm Brown et al. (2005) and Hess (2008)
reputation take care of customers and are genuinely
concerned about their welfare
Privacy The degree to which the online shopping web Román (2007) and Chiu et al. (2009)
site is safe and protects the customers’
information
Trust A set of specific beliefs dealing primarily with Pavlou and Fygenson (2006) and
the benevolence, competence and integrity of Chiu et al. (2009)
another party
Reliability The extent to which the site consistently Swaminathan et al. (1999) and
responds and functions as expected (without Goode and Harris (2007)
broken links, broken pages or dead-end links) Table II.
Functionality The extent to which a web site provides Chung and Law (2003) and Law and Summary table of
sufficient information about the products/ Bai (2008) variables definition
services being promoted and sources

those who have prior experience in buying products or services online in line with the
key informant technique (Ndubisi, 2011). The key informant method was used and only
customers with online shopping experience were requested to respond to the questions.
Key informants are viewed as appropriate respondents if appropriate selection
procedures are used (John and Reve, 1982). Thus, using guidelines on selecting key
respondents from previous research (Campbell, 1955), key informants were screened and
chosen on the basis of their knowledge of the research issues, their experience with
online shopping, and willingness to respond. The snowball approach used in this study
enabled us to achieve this objective and the wider research objective and is a sampling
method widely used in internet-based research.

Questionnaire design
The questionnaire for this research is divided into two parts – Sections A and B. Section A
of the questionnaire contains questions on the demographic profile such as respondents’
age, gender, occupation, education level and monthly income. Section B of the
questionnaire solicits responses on the key constructs of the research framework namely,
perceived value, perceived ease of use, perceived usefulness, firm reputation, privacy,
trust, reliability and functionality. The measurement items were adapted from previous
studies and revalidated for this study. Perceived value was measured with items adapted
from Moliner et al. (2007) and Oh (2003). Measures of perceived usefulness and ease of use
were adapted from Chiu et al. (2009) and Davis (1989). Firm’s reputation was measured
with items adapted from Brown et al. (2005) and Hess (2008). Measures for privacy were
adapted from Román (2007) and Chiu et al. (2009). Trust was measured with items
APJML adapted from Pavlou and Fygenson (2006). The measures for reliability were adapted
23,2 from Swaminathan et al. (1999) and Goode and Harris (2007) whereas functionality items
were adapted from Chung and Law (2003) and Law and Bai (2008). Appendix 2 shows the
full list of the items. The measurement for the conceptual variables was based on a
seven-point Likert scale with scale anchors from “1” – strongly disagree to “7” – strongly
agree. Previous researchers have also used similar measurement in their studies. Lin and
208 Sun (2009) and Wang et al. (2009) are some of the most recent studies which have found the
seven-point Likert scales to be effective measures.

Content validity
The issue of content validity was tackled from the beginning of the study during the
development of measurement items and instrument as recommended by Sonquist and
Dunkelburg (1997). In the literature review, measurement scales were identified and
modified to suit the research purpose of the study and the local context (Gu et al., 2008).
This was supplemented with interviews with a few managers. Additionally, the
questionnaire was pilot tested in the field and modifications were made. Using pilot
survey to measure the face validity and reliability of a survey questionnaire is best
practice and common among researchers (Babbie, 1990; Sekaran, 2003; Law and Bai,
2008; Ndubisi, 2011). Pilot study was conducted using a group of 30 consumers, who
have had experiences in purchasing products and services through the internet. The
suggestions, comments and critiques from these participants were evaluated and
incorporated into the survey before generating the final survey questionnaire. Finally,
the revised and complete questionnaires were sent to participants, who have purchased
products or services online, at least, once, for completion.

Data analysis
We used inferential statistics to make deductions based on the results and the
significance. Descriptive analytical tools such as mean and standard deviation were
used to summarize the respondents’ feedback. For reliability and validity measurement
of the variables, factor analysis and reliability tests were conducted before subjecting
the data to inferential analysis. The eight variables were tested for their relationship
with online repurchase intentions using correlations and regression analysis. SPSS
was used for the analysis.

Results and findings

A total of 124 completed questionnares were retruned, and 22 of this were invalid due
to incomplete reseponses, which results to 102 usable responses. Table III illustrates
the demographic profile of the 102 respondents who participated in this research.
It is shown that female resondents have a higher percentage (55.9 per cent) compared
to male respondents. There are more respondents (60.8 per cent) who are single than
respondents who are married. Also, majority of the respondents are from the age
group of 20-30 years (48.0 per cent). In terms of ethnicity, most of the respondents
are Chinese (47.8 per cent). Majority of the respondents have bachelor degree, earning
monthtly income ranging from RM2,000 to RM4,000. Besides, that, 67.6 per cent of total
respodents have a habit of purchasing items or services online once a year. In addition,
majority of the respondents (27.5 per cent) have purchased materials online two to three
times in the past five years. About 36 per cent of the respondents spend more than
 Online
Items Categories Frequency % Cumulative (%)
repurchase
Gender Male 45 44.1 44.1 intentions
Female 57 55.9 100
Marital status Married 40 39.2 39.2
Single 62 60.8 100
Age ,20 8 7.8 7.8 209
20-30 49 48 55.9
31-40 27 26.5 82.4
41-50 10 9.8 92.2
.50 8 7.8 100
Race Malay 25 24.5 24.5
Chinese 59 57.8 82.4
India 18 17.6 100
Education level O level 8 7.8 7.8
A level 8 7.8 15.7
Diploma/higher
diploma 16 15.7 31.4
Degree 43 42.2 73.5
Post graduate 27 26.5 100
Monthly income , RM2,000 19 18.6 18.6
RM2,000-RM4,000 44 43.1 61.8
RM4,001-RM6,000 21 20.6 82.4
RM6,001-RM8,000 8 7.8 90.2
RM8,001-RM10,000 7 6.9 97.1
. RM10,000 3 2.9 100
Job status Employed 72 70.6 70.6
Self-employed 11 10.8 81.4
Retiree 6 5.9 87.3
Homemaker 4 3.9 91.2
Student 9 8.8 100
Frequency of online purchases? Once a week 5 4.9 4.9
Once a month 28 27.5 32.4
Once a year 69 67.6 100
How many times purchased materials ,2 times 20 19.6 19.6
online in the past five years 2-3 times 28 27.5 47.1
4-6 times 25 24.5 71.6
7-9 times 7 6.9 78.4
.10 times 22 21.6 100
Time spent on a web site when purchasing ,5 minutes 1 1 1
a product/service (minutes) 5-15 minutes 7 6.9 7.8
16-30 minutes 28 27.5 35.3
31-45 minutes 29 28.4 63.7
.45 minutes 37 36.3 100
Number of online shops patronized ,2 shops 25 24.5 24.5
2-3 shops 40 39.2 63.7
4-5 shops 21 20.6 84.3
6-7 shops 6 5.9 90.2
8-9 shops 3 2.9 93.1
10 and more shops 7 6.9 100 Table III.
(continued) Demographic profile
APJML
Items Categories Frequency % Cumulative (%)
23,2
Online items purchased for? Oneself 66 64.7 64.7
Friends 17 16.7 81.4
Family members 19 18.6 100
Online repurchase experience Excellent 31 30.4 30.4
210 Good 50 49 79.4
Average 20 19.6 99
Table III. Bad 1 1 100

45 minutes on a web site when they wish to purchase product/service online and most of
them have experience with two to three online shops to purchase product/service. Most
of the respondents (64.7 per cent) make online purchases for themselves. Lastly, majority
of respondents (49.0 per cent) had a good experience during their online repurchase
activities.
Table IV presents the mean values, standard deviations and the number of items for
each variable. For the independent variables, trust yielded the highest mean (5.67),
followed by privacy (5.64), functionality (5.60), firm reputation (5.54), perceived
usefulness (5.52), perceived value (5.49), reliability (5.47) and lastly perceived ease of
use (5.46). Since all variables yielded mean value more than 5, one can conclude that the
respondents perceptions on these variables are mostly favourable.
Table IV also shows the Cronbach’s alpha values for the independent and
dependent variables in this research. The result indicates that Cronbach’s alpha value
range from 0.711 to 0.830. According to Nunnally (1978), the value for Cronbach’s alpha
of 0.7 or higher is considered acceptable. Thus, the data on these variables are reliable
and consistent with research standards. Appendix 1 shows the rotated components
matrix indicating that the factor loadings of the variables meet the require treshhold
of not less than 0.5 points. This means that the results met the convergent and
discriminant validities.
Normal P-P plot of regression standardized residual provide a visual examination of
the assumptions of normality between the predicted dependent variable scores and the
errors of prediction. The primary benefit is that the assumptions can be viewed and
analysed in one glance; therefore, any violation can be determined quickly and easily.
A 458 diagonal line represents the normal probability line. The dots represent the

ID Variable name Mean (n ¼ 102) SD Number of items Cronbach’s alpha

PV Perceived value 5.49 0.993 9 0.781

PE Perceived ease of use 5.46 0.905 7 0.711
PU Perceived usefulness 5.52 0.963 7 0.741
FR Firm’s reputation 5.54 0.924 8 0.796
PR Privacy 5.64 0.926 7 0.830
TR Trust 5.67 0.903 7 0.809
Table IV. RE Reliability 5.47 1.009 7 0.781
Mean and reliability FU Functionality 5.60 0.950 8 0.748
of variables ORI Online repurchase intentions 5.61 0.893 8 0.817
actual residual, if the residuals are normally distributed the values should fall on the Online
diagonal line of identity. Figure 2 shows the normal P-P plot of regression standardized repurchase
residual of this research. The data collected could be considered as normally
distributed for a sample n ¼ 102 derived from the normal population. intentions
Table V reveals the correlation matrix of the conceptual variables. A two-tail test at
0.05 significance level indicates that there are positive relationships among dependent
variable and the independent variables. 211
From Table VI, R ¼ 0.954 and R 2-value ¼ 0.909. This means that 90.9 per cent of
the variation in Y can be explained by all eight predictors (or accounted for by) the
variation in X.
The results in Table VII show the eight independent variables predict 91 per cent of the
variation in online repurchase intention. This is a considerable amount of variance. The
results also show the detials of the estimated coefficients, where b (constant) is 20.559,
bPV is 0.130, bPE is 0.125, bPU is 0.165, bFR is 0.141, bPR is 0.147, bTR is 0.169, bRE is 0.101
and bFU is 0.131. The result shows that all eight variables are significant at
0.05 significance level (,0.05). This indicates that there is linear relationship between the
dependent variable (online repurchase intentions) and the predictor variables (perceived
value, perceived ease of use, perceived usefulness, firm reputation, privacy, trust,
reliability and functionality).

Dependent variable: online repurchase intentions

1.0

0.8
Expected cum prob

0.6

0.4

0.2
Figure 2.
0.0
Normal P-P plot
of regression
0.0 0.2 0.4 0.6 0.8 1.0
standardized residual
Observed cum prob

PV PE PU FR PR TR RE FU ORI

PV 1.000
PE 0.586 * 1.000
PU 0.680 * 0.660 * 1.000
FR 0.665 * 0.764 * 0.769 * 1.000
PR 0.543 * 0.545 * 0.620 * 0.583 * 1.000
TR 0.601 * 0.703 * 0.735 * 0.798 * 0.543 * 1.000
RE 0.607 * 0.699 * 0.734 * 0.746 * 0.565 * 0.729 * 1.000
FU 0.564 * 0.634 * 0.696 * 0.726 * 0.616 * 0.720 * 0.702 * 1.000
ORI 0.742 * 0.784 * 0.844 * 0.858 * 0.721 * 0.835 * 0.812 * 0.801 * 1.000 Table V.
Pearson correlation
Note: Correlation is significant at the *0.05 level coefficient matrix
APJML Discussion and conclusion
23,2 Existing research has dealt extensively with the factors affecting customers’ offline
repurchase behaviour. Relatively, the amount of research that have considered
online repurchase behaviour is small, as such this paper adds value by contributing to
the relatively sparse literature in the area by integrating different models from past
studies. The results from this study indicate that the all the factors identified in the study
212 infleunce the intention to repurchase online. The outcome of this research not only
corroborates some of the findings of prior studies, but is also an advance over many as the
integrated model explains a greater amount of variance in repurchase intention than any
previous model. As such, the integrated model is more helpful in understanding
customers online repurchase behaiour.
Contextually, this document represents some form of contribution to the literature on
the subject in Malaysia. While there has been a recent increase in research on Malaysia,
the quantum and quality is still a far cry relative to the amount of work done in many of
its Asian counterparts. Besides its contribution to research in Malaysia, practitioners
can avail the knowledge and information unveiled in this study, especially in strategy
decision. Clearly, as the coefficients suggest, some factors emerged with stronger impact
compared to others, online retailers are therefore able to make informed decision
on which factors to pay greater emphasis. Online businesses could use the findings
to enhance their service offerings by deploying more information and knowledge
management systems with stronger capabilities.
By extension, the study is also relevant to other Asian online marketers. Albeit the
present study’s empirical sample was generated from Malaysia, a largely Muslim
(over 60 per cent), the country is “truly Asian” (Malays 50 per cent, Chinese 24 per cent,
Indigenous 11 per cent and Indian 11 per cent (US Central Intelligence Agency, 2008).

Model R R2 Adjusted R 2 SE of the estimate Durbin-Watson

1 0.954a 0.909 0.902 0.18619 2.004

Table VI. Notes: Predictors: (constant), PV, PE, PU, FR, PR, RE, FU; dependent variable – ORI; let Y – online
Multiple regression repurchase intentions (ORI); X – perceived value (PV), perceived ease of use (PE), perceived usefulness
analysis (R and R 2) (PU), firm reputation (FR), privacy (PR), trust (TR), reliability (RE) and functionality (FU)

Unstandardized
coefficients Collinearity statistics
Model b SE t Sig. Tolerance VIF

1 Constant 20.559 0.213 22.619 0.010

PV 0.130 0.045 2.914 0.004 0.470 2.127
PE 0.125 0.056 2.234 0.028 0.363 2.754
PU 0.165 0.057 2.906 0.005 0.291 3.439
FR 0.141 0.066 2.153 0.034 0.226 4.422
PR 0.147 0.039 3.775 0.000 0.527 1.899
TR 0.169 0.056 3.022 0.003 0.288 3.476
Table VII. RE 0.101 0.049 2.068 0.041 0.325 3.077
Regression coefficients FU 0.131 0.054 2.414 0.018 0.355 2.820
This suggests that the outcome may be relevant to a number of Asian consumers and Online
marketers. Malaysia is commonly dubbed “truly Asian” because it is a potpourri of repurchase
Asian cultures, and a representative Asian values, as such the applicability of the
findings of this study to other Asian economies is high. intentions
Online retailers should strive to build good reputation and trust which will enable
customers to continue to buy from them. Privacy is another important driver. Businesses
should continue to focus on improving their goodwill by maintaining good business 213
ethics, which will help in building trust and confidence among customers. Besides,
ensuring privacy of information provided by customers, building trust and good
reputation, added value and usefulness of this mode should be enhanced and
communicated to customers. The greater the value and/or usefulness perceptions of
customers, the greater their likelihood of returning, therefore, online retailers should
clearly demonstrate these benefits in their benefits proposal to the public.
Outcomes are not the only important elements. While outcome orientation of the
respondents are clearly demonstrated in this study, the respondents are also process
oriented. It is crucial for the respective online firms in Malaysia to recognise the
importance of managing consumer expectations and be able to provide functional,
reliable and easy-to-use systems that enable enjoyable online purchase experiences.
As the study shows, customers will be happy to repurchase products and services from
an online store that offers an excellent functional store front that is free of hickups and
other constraints that could frustrate potential customers. Online businesses must
understand what a great online shopping experience is for Malaysians and Asians by
extension, and then provide them. Unlike most past Western-based studies where
outcome and process orientations of customers were insturmantal in their online
repurchase behaviours, our Malaysian data show that ethical and relational variables
namely privacy, reputation and trust are very important factors to pay close attention.
To achieve business success in the marketplace, online businesses in Malaysia would
need to invest resources and time to understand their customers and their buying motives.
Based on this research, the online firms should capitalise on the ethical, outcome, and
process orientations of customers, and through that develop applicable marketing
strategies to retain their customers, which would enhance repurchase activities in the future.
A good customer relationship management will enable a firm to provide excellent service
quality to satisfy customers’ needs. This can enhance customer satisfaction, and help to
reduce customers swtiching behaviours. It is therefore possible for online firms to improve
their competitiveness by effectively managing and delivering services to customers that
guarranttee highest level of ethical standards, efficient processes and beneficial outcomes.
Relevant government agencies could find the outcomes of this paper useful, particularly
with respect to developing internet infrastructure in Malaysia. There is the need to enhance
competition among internet service providers in Malaysia. With greater competition,
customers would have greater options and better services at competitive prices.
It is necessary at this point to mention some of the weaknesses of this paper and to
draw some future research directions. First, we consider the number of usable responses
in this research small. Whereas, the research objectives were fully met, future research
should strive for higher reponse rate. This will increase the representativeness of the
sample and consequently the generaliszability of the findings. In addition, future
research may also consider the responses from businesses. This will enable a stronger
and a more balanced perspective on the research issues.
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Corresponding author
Uchenna Cyril Eze can be contacted at: uc_chinwe@hotmail.com

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 Appendix 1
Component
1 2 3 4 5 6 7 8

PV1 0.792
PV2 0.750
PV3 0.828
PV4 0.713
PV5 0.560
PV6 0.886
PV7 0.730
PV8 0.690
PV9 0.909
PE1 0.887
PE2 0.876
PE3 0.777
PE4 0.670
PE5 0.766
PE6 0.798
PE7 0.838
PU1 0.853
PU2 0.875
PU3 0.786
PU4 0.747
PU5 0.863
PU6 0.662
PU7 0.750
FR1 0.752
FR2 0.797
FR3 0.743
FR4 0.562
FR5 0.838
FR6 0.513
FR7 0.798
FR8 0.428
(continued)
Rotated component

repurchase
intentions
Table AI.

Online
217
matrix
 218

23,2
APJML
Table AI.

Component
1 2 3 4 5 6 7 8

PR1 0.653
PR2 0.865
PR3 0.783
PR4 0.689
PR5 0.842
PR6 0.769
PR7 0.825
TR1 0.846
TR2 0.766
TR3 0.634
TR4 0.588
TR5 0.729
TR6 0.803
TR7 0.608
RE1 0.858
RE2 0.843
RE3 0.730
RE4 0.541
RE5 0.771
RE6 0.796
RE7 0.782
FU1 0.640
FU2 0.852
FU3 0.798
FU4 0.681
FU5 0.548
FU6 0.723
FU7 0.765
FU8 0.715
 Appendix 2
Construct Items Source (s)

Perceived value PV1 – I will be attracted to repurchase a product online, if I experience tangible values Moliner et al. (2007) and Oh (2003)
PV2 – Online shopping makes it easier for me to purchase at anytime and anywhere
PV3 – I will repurchase online provided the web site offers good value for money
PV4 – Perceive value for time used online will attract me to repurchase a product/service
online
PV5 – Greater value-added services provided on the web site would attract me to shop
online
PV6 – I will repurchase online if the online store provides a promise to refund, or an
exchange policy
PV7 – Online store that provides a transparent pricing policy would be an additional value
to attract me to revisit
PV8 – Buying products/services online will enhance my shopping effectiveness and
productivity (e.g. make purchase decisions or find product information within the
shortest period)
PV9 – online retailers always offer the best selling price to customers
Perceived ease PE1 – online shopping makes it easier for me to make products comparison among few Chiu et al. (2009) and Davis (1989)
of use retailers
PE2 – purchasing products and services online is easy to learn and use
PE3 – online store should provide a web site that is flexible to interact with
PE4 – online shopping web site provides various payment channels that make my
shopping online easy
PE5 – purchasing online does not require a lot of mental effort
PE6 – new service of the web site should be well explained
PE7 – I do not get frustrated when I shop online
Perceived PU1 – I always repurchase online based on my need for the product or service Davis (1989) and Chiu et al. (2009)
usefulness
PU2 – I will repurchase online if it provides more benefit than cost to me
PU3 – adequate information about the product or service from the web site is necessary for
me to be attracted to shop online
PU4 – I will purchase products or services online if it enhances my life style
PU5 – I find online shopping more convenient compared with offline shopping
PU6 – I will repurchase online when I realize it is very useful and workable
(continued)

repurchase
The list of items

intentions
and sources

Table AII.

Online
219
 Table AII.

220

23,2
APJML
Construct Items Source (s)

PU7 – I find online shopping useful to manage my time (saves time)

Firm’s FR1 – I will like to repurchase online, if the firm has a good image Brown et al. (2005) and Hess (2008)
reputation
FR2 – I compare firms’ images before my repurchase decision
FR3 – I will repurchase products or services, if the firm’s image meets my expectation
FR4 – I will repurchase products/services online, if the firms provide a dependable web site
FR5 – I will like to repurchase products or services from web sites that are popular
FR6 – I will repurchase products/services online, if my friends recommend the web sites to
me
FR7 – I will repurchase products/services online, if the firm has partners and suppliers that
have strong brand name in the market
FR8 – I will repurchase online from web site that offers quality products or services
Privacy PR1 – web sites that will not share my online shopping behaviour, will attract me to Román (2007) and Chiu et al. (2009)
repurchase
PR2 – I will review customers’ feedback or comments on privacy issue before any
repurchase decision
PR3 – I will read the privacy policy before any repurchase decision to ensure no
amendments made without notifications
PR4 – I will only repurchase from a web site that keeps my entire personal information
private
PR5 – keeping customers’ information confidential is an important consideration during
my repurchase decision
PR6 – I will repurchase products and services online, if the firm assures that my financial
details will not be accessible by a third party
PR7 – authorized username and password are important
Trust TR1 – a trustable web site will ensure product shown in web site is reliable Pavlou and Fygenson (2006) and
TR2 – an online store that appears believable will Chiu et al. (2009)
attract me to repurchase products/services more often
TR3 – I will repurchase products and services from the web site, if the purchase terms and
conditions are clear
TR4 – I will repurchase from the online store, if the technical infrastructure of the web site
is dependable
(continued)
Construct Items Source (s)

TR5 – A web site that offers secure personal data can be trusted
TR6 – transaction securities enhance the level of trust towards the web site
TR7 – product attributes and specifications that are delivered as promised are persuasive
to me
Reliability RE1 – web sites without broken links/broken pages reflect that the web sites are Swaminathan et al. (1999) and
dependable Goode and Harris (2007)
RE2 – I will repurchase from same web site rather than making new purchase from other
web site if the web site is genuine
RE3 – I will repurchase products/services online, if the web site does not breakdown
frequently
RE4 – I will always evaluate the quality of the web site before any repurchase decision
RE5 – I expect web sites that are capable to process large number of transactions are to be
dependable
RE6 – I will repurchase products/services online, if the firm maintains accurate product and
service information on the web sites
RE7 – well-recommended online store tend to be trustable
Functionality FU1 – I will ensure that the web site functions effectively before any repurchase decision Chung and Law (2003) and Law
and Bai (2008)
FU2 – I will repurchase from a web site that provides related links that makes my shopping
experience more fun and less frustrating
FU3 – I will repurchase from web sites that is well organized
FU4 – I will be attracted to repurchase from web sites that update the online shopping site
continuously with latest information
FU5 – I will be attracted to online shopping sites that can provide live support through the
web site
FU6 – I will repurchase products/services online, if it is easy to make changes even after I
submit online transaction
FU7 – I will be favourable to revisit the online shop, if the web site is user friendly
FU8 – simple web sites with great functionality will attract me to revisit

repurchase
intentions
Table AII.

Online
221