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Sales
How website quality affects promotion and
online impulse buying credit card use
Abstract
Purpose – The purpose of this paper is to investigate the impact of website quality on online impulse buying
behavior (OIBB) in China, and assess the moderating roles of sales promotion and credit card use.
Design/methodology/approach – An online and personal survey from 1,161 online shoppers belonging to
three big cities of China – Beijing, Shanghai, and Nanjing – was conducted. A random sampling technique
was utilized for data collection. Data were analyzed using validity and reliability tests, confirmatory factor
analysis, and structural equation modeling.
Findings – Three major findings discovered are: first, the website quality positively affects the OIBB;
second, the sales promotion significantly influences OIBB and acts as a strong moderator on the relationship
between website quality and online impulse buying; and third, the online impulse purchases are positively
influenced by use of credit card, and the use of credit card enhances the relationship between website quality
and online impulse buying.
Research limitations/implications – First, the website quality positively affects the OIBB; second, the sales
promotion significantly influences OIBB and acts as a strong moderator in the relationship between website
quality and online impulse buying; and third, online impulse purchases are positively influenced by credit card
use. Moreover, credit card use enhances the relationship between website quality and online impulse buying.
Originality/value – This research is the first to investigate the relationship between website quality and
OIBB in China, with sales promotion and credit card use as moderators.
Keywords China, Sales promotion, Credit card use, Online impulse buying behaviour, Website quality
Paper type Research paper
1. Introduction
The internet plays a vital role in our daily life. In China, majority of the population makes
purchases online to conserve time and efforts, and to espouse the individuality culture.
According to the 2016 China online shopping report published by the National Bureau of
Statistics, China’s gross merchandise volume amounted to 4.8 trillion Yuan in 2015, jumping
up by 64.4 percent on a year-over-year basis. This growth was more than four times faster
than the total retail sales of consumer goods. Moreover, the internet penetration rate in total
Asia Pacific Journal of Marketing
The authors want to extend their gratitude toward the editor and the anonymous reviewers for their and Logistics
Vol. 30 No. 1, 2018
indispensable and valuable suggestions and comments that improved the quality of the paper pp. 235-256
significantly. Furthermore, the authors thank Professor Song QingQing in helping the translation of © Emerald Publishing Limited
1355-5855
the survey questionnaire and Dr Hassan Rasool for his valuable suggestions. DOI 10.1108/APJML-04-2017-0073
APJML retail sales of consumer goods exceeded 10 percent for the first time in the Chinese history,
30,1 which serves a healthy opportunity for online retailers to focus on online shoppers. A recent
study by Floh and Madlberger (2013) indicates that a huge sum of shoppers purchased
products spontaneously in the modern world. This portrays the growing significance of online
shopping, and thereby highlighting the necessity of in-depth understanding of online impulse
buying. As cited by Liu et al. (2013), User Interface Engineering, a leading research company
236 specializing in website and product quality, reports that almost 40 percent of online shopping
transactions are considered as impulse purchases (Verhagen and van Dolen, 2011). Hausman
(2000) argues that 30-50 percent of all retail sales are triggered by impulse purchases, while
90 percent consumers buy goods impulsively on occasions. Recently, Wu et al. (2016) have
shown that 82 percent respondents engaged in impulse shopping. A growing number of
online retailers are implementing impulse buying strategies to attract and retain consumers.
The China Internet Network Information Center’s (CNNIC) December 2016 report discloses
that with an annual increase of 42.99 million internet users China’s internet user population
has reached 731 million, with a penetration rate of 53.2 percent, up 2.9 percentage points from
the end of 2015. China has now become the largest internet market in the world. Millions of
netizens are surfing the internet to acquire information about products and services, and are
often even spending more time on online purchases than their genuine requirements.
Impulse buying behavior is very common among consumers worldwide. Dawson and
Kim (2010) argue that 50 percent consumers buy goods impulsively. To boost impulse
buying, retailers readily focus on product displays, store designs, and package designs to
attract and hold shoppers’ attention (Lee and Kacen, 2008). Existing research shows that
almost any items might be purchased on impulse (Rook and Fisher, 1995; Kacen and
Lee, 2002). Although the impulse buying phenomenon is most likely to hold for inexpensive
items, it may be observed for expensive items as well (Rook and Fisher, 1995).
In principle, impulse shoppers may usually not control their inherent behaviors to visit
online stores (Wells et al., 2011). Online shoppers are rather involved in discrete
psychological states of unplanned and sudden behaviors toward a buying-decision process,
which makes it difficult to for retailers to predict (Floh and Madlberger, 2013). From the
internet user perspective, online shoppers/consumers are website users who execute all
functions of purchase decision making, from searching for the information of a related
product to tracking product delivery and complete payment system. Therefore, the usage of
website technology and belief/trust on e-stores are two significant factors for online impulse
buying shoppers (Wu et al., 2011; Wu, 2013).
To date, the existing research on impulse buying has focused on different factors
(Stern, 1962; Piron, 1991), such as external factors (Karbasivar and Yarahmadi, 2011;
Mehta and Chugan, 2013), store atmosphere (Akram et al., 2016), intrinsic factors
(Badgaiyan and Verma, 2014; Foroughi et al., 2013; Flight et al., 2012), in-store lighting
(Summers and Hebert, 2001), in-store music (Dubé and Morin, 2001), in-store fragrance
(Mattila and Wirtz, 2001), the mood and emotions of buyers (Foroughi et al., 2013;
Solomon et al., 2012), website design, web skills, trust and flow experience (Wu et al., 2016),
hedonic and utilitarian motivations (Akram, Hui, Khan, Saduzai, Akram, and Bhati, 2017),
and situational factors such as scarcity and serendipity (Chung et al., 2017), among others.
The growth of online shopping has motivated the need to study online impulse buying
behavior (OIBB) under recent trends (Floh and Madlberger, 2013). Previous research studies
have recommended several perspectives to better understand OIBB. Some studies suggest the
shopping enjoyment effect as a mediator to direct the OIBB from websites’ interaction
experience (affective) and websites’ usefulness for shopping task (cognitive) (Koufaris, 2002;
Parboteeah et al., 2009). Other studies focus on the importance of electronic store
characteristics (design, content, and navigation) as the antecedents of repelling OIBB through
the mediation of shopping enjoyment and effective perception (Floh and Madlberger, 2013).
A number of studies have been conducted to examine the factors affecting the impulse Sales
purchase decision-making process of consumers in online environments. For instance, a few promotion and
studies utilize environmental psychology to investigate how website attributes, such as ease credit card use
of use, visual appeal, and information fit-to-task, affect consumers’ personality and emotions
causing online impulse shopping decisions (Parboteeah et al., 2009; Verhagen and van
Dolen, 2011; Wells et al., 2011). These studies recommend that information systems (IS),
wisdom, and integration of marketing would increase the knowledge on online impulse 237
buying (Verhagen and van Dolen, 2011; Wells et al., 2011). Earlier IS studies have
investigated how three perceived website attributes, namely, product availability, ease of
use, and visual appeal, interact with consumers’ personalities to motivate impulse buying.
From a technical perspective, previous studies have mainly emphasized website attributes
such as the navigation ability, pleasantness, visual attraction, and security (Luo et al., 2012;
Floh and Madlberger, 2013). Shen and Khalifa (2012) argue that a website’s perceived
usefulness shows the degree to which online consumers believe that shopping productivity
can be increased by using a specific website.
The purpose of this study is to provide a better understanding of factors of website
quality with two moderators, namely, sales promotion and credit card use, which determine
B2C OIBB adoption in China. Traditional Chinese retailers are paying increasing attention
to online transactions. Many traditional retailers are developing e-commerce platforms that
are driving B2C online retailing market growth and attracting more consumer interest in
purchasing products online (Su, 2009). Given the rapid trends of e-commerce in China,
retailers need recommendations to cater to future endeavors and business expansion. This
very need is expected to be met by the current study, which analyzes the relationship
between OIBB and website quality by incorporating the moderating effects of sales
promotion and credit card use. Specifically, researchers who wish to conduct research on
China’s B2C internet market from the perspective of online impulse buying by analyzing
website attributes may be the direct beneficiaries of this study.
There is a growing body of research exploring consumers’ online shopping behavior
in the Western context; far less is known in other parts of the world (Stafford et al., 2004).
Therefore, whether these research studies and associated theories are generalizable to
other cultural contexts, such as China, remains largely unknown. To date, relatively few
empirical studies have been conducted in the Chinese context. Considering the fact that
China has currently become the largest internet market worldwide, an in-depth
understanding of the primary motivations, attitudes, and behaviors of Chinese online
shoppers is needed if online marketers, brand strategists, advertising managers, and
website developers are to influence consumers’ online buying decisions. The current
seminal work of Clemes et al., 2014 is unique in this aspect because it addressed the online
shopping trend in China. However, the findings of the study are debatable because it
gathered data from only one city, Beijing, which is the largest metropolitan city of China.
Thus, this may raise concerns over the generalizability of the findings. In addition, this
study has led to an urge to discover the pivotal factors in the adoption of online shopping.
The present study attempts to fill this gap by empirically investigating the OIBB of
Chinese consumers, and to extend the existing research on online impulse buying,
specifically in the Chinese context.
Numerous Chinese consumers buy online products from popular sites, including Jd.com,
taobao.com, amazon.com, tmal.com, vip.com, bj.jumei.com, dangdang.com, gome.com, and
suning.com. Therefore, the findings of this study are also relevant to these as well as other
Chinese online retailers. Although voluminous research can be found on impulse buying
behavior, these studies do not embrace the emerging face of impulse buying, that is, OIBB.
Moreover, all of these studies have been conducted on developed economies, leaving behind
the need to investigate this issue in an emerging economy like China, which houses the
APJML largest number of netizens ever. Accordingly, this study is poised to examine the following
30,1 research questions:
RQ1. Does website quality ignite Chinese consumers’ OIBB?
RQ2. How does sales promotion influence consumers’ OIBB?
RQ3. How does credit card use impact consumers’ OIBB?
238 RQ4. Does sales promotion moderate the relationship between website quality and OIBB?
RQ5. Does credit card use moderate the relationship between website quality and OIBB?
In accordance with the aforementioned objectives, the remainder of this paper is structured
as follows. Section 2 presents a literature review on OIBB. Section 3 discusses hypotheses
development. Section 4 presents the research methodology adopted for this study. Section 5
presents the key findings of the study. Finally, Section 6 concludes the study and provides
important implications and future research directions.
Item Composite
Constructs Items Mean SD loading reliability AVE Cronbach’sα
Impulse buying behavior (IBB) 9 3.7282 0.62760 0.80-0.91 0.80 0.88 0.90
Store promotion (SP) 3 3.5446 1.03508 0.81-0.94 0.91 0.83 0.86
Use of credit card (UCC) 3 3.5487 0.86688 0.78-0.88 0.81 0.81 0.84
Usefulness (USFN) 12 3.5136 0.92397 0.78-0.91 0.87 0.80 0.81
Ease of use (EOU) 6 3.4301 1.00340 0.81-0.91 0.88 0.72 0.88 Table II.
Entertainment (ENT) 9 3.5675 0.83409 0.88-0.95 0.92 0.72 0.80 Descriptive statistics,
Complimentary relation (CR) 9 3.6270 0.79801 0.76-0.88 0.92 0.69 0.89 reliability and
Note: n ¼ 1,161 convergent validity
APJML Constructs KMO IBB SP UCC UFLN EOU ENT CR
30,1
IBB 0.789 (0.93)
SP 0.871 0.511 (0.91)
UCC 0.689 0.481 0.590 (0.90)
USFN 0.811 0.427 0.486 0.314 (0.89)
EOU 0.743 0.569 0.522 0.552 0.499 (0.84)
246 ENT 0.719 0.322 0.403 0.611 0.362 0.507 (0.84)
CR 0.819 0.431 0.505 0.535 0.464 0.421 0.583 (0.83)
Table III. Notes: n ¼ 1,161. The parentheses scores diagonal are the square root of AVEs of the individual constructs.
Discriminant validity Non-diagonal values are cross construct squared correlations
0.316**
Usefullness Sales Promotions H2
0.165***
0.430***
0.718***
Website Quality H1
Online Impulse
0.153** Buying Behavior
Entertainement H5
0.360**
0.566***
Complementary 0.119***
Use of Credit Card H4
Relationship
Figure 1. Notes: Model fit indices: CMIN/df: 2.323; p = 0.001; CFI = 0.98; GFI = 0.99; AGFI = 0.98;
Conceptual framework
with results NFI = 0.96; RMSEA = 0.031; RMR = 0.04. Value on path: standardized coefficients ()
“R2: coefficient of determination. *p< 0.05; **p<0.01; ***p<0.000”
the results of the structural model. The findings show outstanding structural model fit
indices: CMIN/df: 2.323, p ¼ 0.001, CFI ¼ 0.98, GFI ¼ 0.99, AGFI ¼ 0.98, NFI ¼ 0.96,
RMSEA ¼ 0.031, RMR ¼ 0.04.
This study demonstrates some interesting results while testing the hypotheses. Usefulness
( β ¼ 0.165, po0.000), Ease of Use ( β ¼ 0.214, po0.000), Entertainment ( β ¼ 0.153, po0.05),
and Complementary Relations ( β ¼ 0.360, po0.05) were indicated as important antecedents of
website quality. H1-H5 were all substantiated. First, we elucidate the hypotheses testing
the direct effects with OIBB. Website quality with the four combined antecedents has a
significant positive impact on online impulse buying (R2 ¼ 0.490 with β ¼ 0.718, po0.001;
t-value ¼ 13.221), which means 49 percent of variance in the dependent variable OIBB is
explained by website quality, H1 is, thus, supported. Before using sales promotion and credit
card use as moderators, the study checked their direct effect on OIBB. Sales promotion showed
a significant effect on online impulse buying R2 ¼ 0.510 ( β ¼ 0.316; po0.05; t-value ¼ 4.568).
H2 is also supported. H4 was also supported as credit card use was found to have positive and
significant impact on OIBB (R2 ¼ 0.525 ( β ¼ 0.119; po0.000; t-value ¼ 7.870)).
The results of the moderation effect are showed in Tables IV and V. Three steps were
utilized during the hierarchical moderation analysis. In the first step, the endogenous variable
OIBB is regressed on the website quality as the exogenous variable. This is followed by the
second regression step of OIBB with the moderator variable, sales promotion. In the last step,
an interaction term obtained by multiplying exogenous variable with moderator variable
is also entered. In order to avoid the issue of multicollinearity stemming from correlation, these Sales
variables have their data mean centered (Aiken et al., 1991). The value of R2 of website quality promotion and
was 0.490. The coefficient value of sales promotion is 0.316, which means sales promotion has credit card use
a significant and positive relationship with OIBB. In third step, ΔR2 identified from the
integration term (website quality × sales promotion) was 0.003. This implies website quality
and sales promotion explained additional 3 percent of variance in OIBB. The total effect of the
interaction term was R2 ¼ 0.513, which means both variables jointly explained 51.3 percent 247
variance in OIBB ( β ¼ 0.430; po0.000, t-value ¼ 2.261). The increase in R2 value from
0.510 to 0.513 depicts that there is a direct and significant moderating effect of sales promotion
(F ¼ 405.61, po0.000). H3 is accepted (see Table IV). Table V reports the moderation effects
of credit card use. Credit card use is an important variable that affects OIBB ( β ¼ 0.119).
A significant interaction effect between website quality and credit card use ( β ¼ 0.566;
po0.000, t-value ¼ 3.894) on OIBB was found. The interaction term, (website quality × credit
card use) ΔR2 ¼ 0.006, was found which means website quality and credit card use both
explained additional 6 percent of variance in OIBB; thus, the total effects of the interaction
term and website quality jointly explained 53.2 percent of variance in the dependent variable
OIBB (R2 ¼ 0.532 and β ¼ 0.566). Similarly, the improved R2 from 0.526 to 0.532 also shows
that there is a significant and direct moderation effect of credit card use (F ¼ 438.69,
po0.000). H5 is also supported (see Table V ). The above discussion and statistics indicate the
strong moderating roles of sales promotion and credit card use in the relationship between
website quality and OIBB.
5
Low SP High SP
4.464
4.5
4
Online Impulse Buying
3.5
3
2.972
2.5
2.396
2.168
2
Figure 2. 1.5
Moderation plot of
sales promotion 1
Low Website Quality High Website Quality
5 Sales
Low UCC High UCC
4.403 promotion and
4.5
credit card use
4
Online Impulse Buying
3.5 249
3
3.033
2.729
2.5
2
1.835
1.5
Figure 3.
Moderation plot of
1 credit card use
Low Website Quality High Website Quality
6.2 Implications
The findings of this study have both theoretical and practical implications. Theoretically,
the study has strengthened the existing knowledge in the fields of e-commerce, e-marketing,
e-retailing and related literature, by identifying and covering the gap between previous
studies. Moreover, the study has used an integrated approach by considering many related
factors like sales promotion, website quality, and credit card use simultaneously. The study
reveals that these factors positively and significantly influence online impulse buying in the
Chinese online retail market. Specifically, the finding that credit card use and sales
promotion play a critical and moderating role in the relationship between website quality
and online impulse shopping is unique. Although some previously established studies have
analyzed the direct effect of sales promotion and credit card use in offline impulse buying
settings, none of them have identified their role as moderators.
Some practical implications are also found from the results. First, the current study
states that quality of website is positively and strongly linked to online impulse buying.
Online shoppers possess the dual nature of consumers and the users of website; thus,
the design and quality of website should consider the characteristics of navigational
structure, product information, and user interface for shoppers to discover appropriate and
suitable products for their needs. These characteristics present an understandable logic of
usefulness by shoppers with regard to efficiency and effectiveness of their online buying
process. As website quality is a major determinant of online impulse shopping, online
retailers should consider it vigorously. They should focus more in improving the quality and
design more effective web stores (e.g. designing user friendly, ease of use, and visually
appealing website and enhancing product category with attractive, rich information about
products, minimum response time, and trust) in order to enhance impulse buying.
Furthermore, flexible and traceable navigational structure along with highly productive
search engine is recommended. This will also help to enhance customers’ self-efficacy of
using or surfing shopping websites.
Last but not the least, webstores should present rich content of products needed by
customers, including product category, product specifications and information,
substitutes, upcoming products of the same brands, upcoming new brands for the same
product, technical and descriptive comparison of products, and users’ reviews. This will
APJML help retailers in triggering impulse buying as well as help customers in their purchase
30,1 decisions. A huge responsibility also lies on the shoulders of web developers.
Website developers could improve and add visual appeals, emotional appeal, and
innovative features for online web users to feel pleasing, creative, and cheerful to
stimulate online impulse shopping.
Moreover, sales promotion helps online retailers in devising marketing strategies
250 accordingly and influencing consumers’ purchase decision-making process. Specifically,
while designing online promotional strategy aimed at creating online sales, e-marketers
should analyze the potential shoppers’ behavior and devise strategies with respect
to the frequency with which they return to the web portal to shop. Chinese online sellers
should consider the use of online monetary sales promotions absolutely for novice
users and non-monetary promotions for expert web users to enhance online impulse
shoppers. In order to encourage online impulse buying, e-marketers may use
strategies like cross-selling (stimulate online shoppers to purchase complementary and
related products) and up-selling (motivating online shoppers to buy a comparable
higher-end product).
In the same vein, the moderating effect of credit card use influences the relation
between website quality and OIBB. Major obstacles in promoting credit card use for
online shopping are privacy and security concerns. E-retailers should be considerate in
ensuring the safety of users. E-retailers may introduce new schemes such as discounts on
buying through credit card or on large shopping. In this regard, the role of financial
institutions is crucial to develop the habit of credit card use widely. This will be a win-win
situation for banks and e-retailers. Adopting most of the recommendations suggested by
this study may help online businesses to get competitive advantages. A point to be noted
is that the findings of this study are not limited to Chinese e-retailers only. These are
equally beneficial to all online businesses operating worldwide. The crux is to increase
the catchability of websites, developing ease of use websites for e-shoppers, and
facilitating easy mode of payment. Search engine optimization is also important.
From the perspective of search engine optimization, web developers may include the
cross links. For instance, it provides the visibility of maximum links of important pages,
which may motivate the online shopper to indulge in online impulse buying. Moreover,
the writing content of keywords and phrases that are frequently searched also play a
vital role in stimulating online purchase.
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Corresponding author
Umair Akram can be contacted at: leo_umairinfo@yahoo.com
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