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University of Plymouth PEARL https://pearl.plymouth.ac.uk 04 University of Plymouth Research Theses 01 Research Theses Main Collection 2016 HOW EXTERNAL AND MEDIATING FACTORS AFFECT CONSUMER PURCHASING BEHAVIOUR IN ONLINE LUXURY SHOPPING Alamoudi, Hawazen http://hdl.handle.net/10026.1/5323 Plymouth University All content in PEARL is protected by copyright law Author manuscripts are made available in accordance with publisher policies Please cite only the published version using the details provided on the item record or document In the absence of an open licence (e.g Creative Commons), permissions for further reuse of content should be sought from the publisher or author HOW EXTERNAL AND MEDIATING FACTORS AFFECT CONSUMER PURCHASING BEHAVIOUR IN ONLINE LUXURY SHOPPING By HAWAZEN ALAMOUDI A thesis submitted to Plymouth University in partial fulfilment for the degree of DOCTOR OF PHILOSOPHY June 2016 Copyright statement This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognise that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author's prior consent i Dedication To my father, Omar and my mother, Haifa To my husband Majed and my babies Majd & Judi To all my family members ii Acknowledgement Every step I take is a blessing of Allah First and foremost, I thank from the bottom of my heart Almighty ALLAH for giving me the strength and patience to complete this thesis “All praise is for God.” I would like to express my gratitude to those people who helped make my PhD journey in life beautiful, easy, and interesting My first thanks would go to my mother and father for their genuine and continuous support during my life and my studies My sincerest thanks and appreciation go to my beloved husband Majed; his support and understanding has been a significant encouragement for me to complete this study and carry on achieving our goals I would also like to thank my babies Majd and Judi for improving my life immeasurably Without them I would not feel the excitement of finishing my work on time and and enjoying the completion of each stage Moreover, my heartiest appreciation goes to my brothers and sisters who supported and encouraged me in countless ways during my time living abroad My truthful thanks go to Prof Shaofeng Liu, my Director of studies; Phil Megicks, my second supervisor; and Dr Dulekha Kasturiratne Without their invaluable support, patience and encouragement during various stages of my research, this task would have been very difficult I consider myself hugely blessed to have worked under their supervision In fact, Prof Shaofeng is critical on time, and her specific feedback on my work has been of enormous importance and value Also, I would like to thank both the academic and non-academic staff members at Plymouth University for assisting me in numerous ways I would also like to thank my PhD colleagues at Plymouth University for their care and companionship during my studies Last, but not least, my truthful thanks and gratitude are given to all my friends and relatives who helped me in countless ways iii Author’s Declaration At no time during the registration for the degree of Doctor of Philosophy has the author been registered for any other University award without prior agreement of the Graduate SubCommittee Work submitted for this research degree at the Plymouth University has not formed part of any other degree either at Plymouth University or at another establishment Papers have been published and presented by the author based on the PhD work, and the full list of publications has been included in the next page Word count of main body of thesis: 55,456 words Signed ………………………………… Date …………………………………… iv Achievements throughout PhD: Journal papers Hawazen Alamoudi, Shaofeng Liu, Phil Megicks, and Dulekha Kasturiratne (2016) “The Predicting Factors of Consumers to Purchase Online Luxury Shopping", Journal of Business Research Conference papers Hawazen Alamoudi, Shaofeng Liu, Phil Megicks, and Dulekha Kasturiratne (2013) “Social Media impacting Consumer perception on Online Luxury Shopping” WBM Conference, dated 5-6/04/2013 San Francisco, USA Hawazen Alamoudi, Shaofeng Liu, Phil Megicks, and Dulekha Kasturiratne (2014) “Consumer Perceptions of Web Service Quality in Luxury Online Shopping” British Academy of Management (BAM), dated 9-11/09/2014, Belfast, UK v Contents Acknowledgement iii Abstract xv Chapter Introduction 1.1 Research Background 1.1.1 The Story about Consumers’ Online Luxury Shopping 1.1.2 Definition of Online Shopping 1.1.3 Definition of Luxury 1.2 Research Aim, Objectives and Questions 1.3 Research Process 1.4 Significance and Contributions of Research 11 1.5 An Overview of the Chapters 14 1.6 Summary 15 Chapter Literature Review 16 2.1 Consumers’ Online Luxury Shopping Model Background 16 2.2 Extended Technology Acceptance Model in Consumers Online Luxury Shopping (COLS) Model 18 2.3 External Factors of Online Luxury Shopping 20 2.3.1 Perceived Usefulness and Consumer Attitude 21 2.3.2 Perceived Ease of Use and Consumer Attitude 21 2.3.3 Electronic Service Quality and Consumer Attitude 22 2.3.4 Social Media Marketing Activities and Consumer Attitude 24 2.3.5 Social Network Usages and Consumer Attitude 26 2.3.6 Electronic Word of Mouth and Consumer Attitude 27 2.3.7 Perceived Brand Value and Consumer Attitude 30 2.4 Consumer Attitude in Online Luxury Shopping 31 2.5 Consequences of Consumer Attitude 32 2.5.1 Consumer Attitude and Purchase Intention 32 2.5.2 Consumer Attitude and Actual Purchase 33 2.5.3 Consumer Attitude and E-Satisfaction 35 2.5.4 Consumer Attitude and E-Loyalty 37 2.6 The Mediating Role of Consumer Attitude 37 2.7 The Relationship between the Purchase Life Cycle Variables 38 2.7.1 The Relationship between Intention to Purchase and Actual Purchase 38 vi 2.7.2 The Relationship between Actual Purchase and e-Satisfaction 39 2.7.3 The Relationship between E-Satisfaction and E-Loyalty 40 2.9 Hypotheses Statements 47 2.10 Summary 47 Chapter Research Methodology and Data Collection 49 3.1 Research Philosophy 49 3.2 Research Approach 52 3.3 Research Design 54 3.4 Research Strategy 55 3.5 Geographical Coverage 56 3.6 Research Methods 57 3.7 Questionnaire Survey Design 61 3.7.1 Data Collection Protocol 61 3.7.2 Structure of the Survey Questionnaire 62 3.7.3 Measurement Variables 64 3.7.3.1 The Independent Variables 65 3.7.3.2 The Dependent Variables 67 3.7.3.3 The Mediating Variable 67 3.7.4 Pilot Test and Validity 68 3.7.4.1 Content Validity 69 3.7.4.2 Construct Validity and Reliability 69 3.7.5 Population and Sampling Strategy Techniques 71 3.7.6 Non-Response Rate and Sample Size 73 3.8 Research Ethics 76 3.9 Summary 77 Chapter Data Analysis 80 4.1 Introduction 80 4.2 Descriptive Analysis of Sample 80 4.2.1 Sample Characteristics 81 4.2.2 Missing Data and Outliers 83 4.3.3 Non-Response Bias Analysis 84 4.3.4 Common Method Bias 86 4.4 The PLS-SEM Analysis 87 4.4.1 Determining the Nature of the Constructs 87 vii 4.5 Measurement Model of the Reflective First Order Constructs 89 4.5.1 Reliability 89 4.5.2 Convergent Validity 90 4.5.3 Discriminant Validity 90 4.5.4 Collinearity 91 4.6 Measurement Model of the Formative Second Order Constructs 92 4.7 The Structural Model Results 94 4.7.1 Model Fit Indices 95 4.7.2 The Path Analysis 96 4.7.3 Predictive Validity (Relevance) 98 4.9 Summary 102 Chapter Multi-group Analysis 106 5.1 Introduction 106 5.2 Descriptive Statistics 106 5.5 Multi-group Analysis (MGA) 112 5.6 Summary 118 Chapter Discussion 120 6.1 Introduction 120 6.2 How The Research Questions Have Been Addressed 120 6.4 Consumer Attitude Effect on the Buying Process in Online Luxury Shopping (RQ2) 127 6.5 External Factors (E-SQ, SNSU, SMMA and PBV) Influence Consumers’ Intention Through Consumer Attitude (RQ3) 130 6.6 The Relationships Inside the Purchase Life Cycle in Online Luxury Shopping (RQ4) 132 6.7.1 Country comparison 135 6.7.3 Internet experience level (intermediate and advanced) 141 6.8 Summary 144 Chapter Conclusions 146 7.1 An Overall View of the Research Project 146 7.2 Main Conclusions 148 7.3 Contributions and Research Implications 150 7.3.1 Theoretical Implications 150 7.3.2 Implications for Marketing Practice 153 viii Cronbach’s Alpha Number of Items 74.8 Thus, it can be concluded that the Actual purchase construct employed in this study has appropriate reliability Table shows the corrected item – total correlation for actual purchase construct The items mean is 74.8This Cronbach’s alpha is excellent and above the supported threshold of 0.7 11- Electronic-Satisfaction Construct Table electronic satisfaction indicates that the Cronbach’s alpha for the E-Satisfaction construct is 91.5 This Cronbach’s alpha is excellent and above the advocated threshold of 0.7 Formative, 13 items Corrected itemtotal correlation Cronbach’s alpha if Item Deleted E-S1) Total shopping time 647 909 E-S2) Convenience 655 909 E-S3) Ease of browsing 450 916 E-S4) Number of offerings 717 906 E-S5) Variety of offerings 805 902 E-S6) Quantity of information 718 906 E-S7) Quality of information 676 908 E-S8) Financial security of the transaction 549 914 E-S9) Presenting uncluttered screens 645 909 E-S10) Providing easy-to-follow search paths 605 911 908 E-S11) Presenting information fast 670 E-S12) Overall, how you feel about your online luxury shopping experience? 671 908 E-S13) Overall, how you feel about your online luxury shopping experience? 911 595 Table shows that corrected item- total correlations for the E- Satisfaction construct three items (Formative) range from 450 to 805, indicating that no items is dismissed and no item has to be removed Cronbach’s Alpha Number of Items 91.5 13 Thus, it can be concluded that the e-satisfaction construct employed in this study has appropriate reliability Table shows the corrected item – total correlation for e- Satisfaction construct The items mean is 91.5 Cronbach’s alpha is excellent and above the supported threshold of 0.7 198 12- Electronic-Loyalty Construct Table electronic loyalty indicates that the Cronbach’s alpha for the E-Loyalty construct is 91.2 This Cronbach’s alpha is excellent and above the advocated threshold of 0.7 Reflective, items E-L1) I seldom consider switching another to online luxury shopping E-L2) I believe that this is my favourite online luxury website E-3) When I need to purchase, this luxury shopping website is my best choice Corrected itemtotal correlation Cronbach’s alpha if Item Deleted 773 924 824 872 886 827 Table shows that corrected item- total correlations for the E- Satisfaction construct three items (Reflective range from 773to 886, indicating that no items is dismissed and no item has to be removed Cronbach’s Alpha Number of Items 91.2 13 Thus, it can be concluded that the e-loyalty construct employed in this study has appropriate reliability Table shows the corrected item – total correlation for e- loyalty construct The items mean is 91.2Cronbach’s alpha is excellent and above the supported threshold of 0.7 199 Appendix D: Combined Loadings and Cross-loadings for COLS Model const ructs SNS1 SNSU eW OM 0.0 07 eSQreli 0.19 eSQres 0.01 eSQcon 0.01 eSQEU 0.00 SNS2 (0.849) 0.0 12 0.05 0.07 SNS3 (0.880) 0.0 50 0.01 0.10 0.06 SNS4 (0.877) (0.885) SNS6 (0.874) 0.00 0.11 0.01 0.14 SNS5 SNS7 (0.833) eWO M1 -0.014 0.0 06 0.0 32 0.0 15 0.0 16 (0.9 09) eWO M2 0.060 (0.8 92) 0.00 0.06 0.08 0.04 0.04 0.06 0.10 0.02 0.03 eWO M3 -0.057 (0.9 09) eWO M4 0.016 (0.7 42) eSQ1 0.072 0.0 17 eSQ2 -0.013 eSQ3 -0.061 eSQ4 0.022 0.0 03 0.0 15 0.0 65 eSQ5 0.042 (0.845) - 0.03 0.01 (0.85 6) (0.67 8) (0.87 3) 0.03 0.10 0.05 0.07 0.05 0.07 0.09 0.03 0.04 0.12 0.01 0.50 0.37 (0.87 4) (0.85 0.08 0.14 0.09 0.03 0.31 0.01 0.02 0.06 0.05 0.00 0.06 0.14 E-S prot 0.05 0.07 eSQsec 0.13 0.03 0.15 0.01 Att Int AP 0.09 0.14 0.02 0.07 0.08 0.01 0.04 0.19 0.02 0.02 0.03 0.03 0.01 0.04 0.10 0.02 0.04 0.07 0.05 0.15 0.03 0.01 0.06 0.05 0.07 0.05 0.06 0.12 0.01 0.02 0.14 0.07 0.00 0.02 0.00 0.01 0.09 0.00 0.06 0.08 0.03 0.01 0.04 0.02 0.10 0.50 0.02 0.28 0.11 0.37 0.07 0.28 0.12 0.04 0.31 0.03 0.17 0.09 0.20 - 0.08 0.09 0.25 0.29 0.00 0.09 0.04 0.12 0.04 0.11 0.15 0.00 0.04 - 0.00 0.03 0.05 0.05 0.13 0.04 0.01 0.17 0.10 0.03 0.11 0.00 0.12 - eScon 0.05 0.06 0.03 0.06 0.01 0.10 0.14 0.12 0.22 eS- p off 0.02 eS- p inf 0.03 eSsite 0.12 0.05 0.02 0.09 0.11 0.02 0.03 0.13 0.02 0.07 0.08 0.03 0.12 0.31 0.16 0.02 0.06 0.00 0.04 0.01 0.10 0.00 0.04 0.17 0.09 0.04 0.05 0.02 0.17 0.03 0.10 - - - 0.12 0.07 0.00 0.11 0.02 0.00 0.10 0.17 0.02 0.09 0.00 0.13 0.10 0.00 0.09 200 eSfin 0.06 0.02 eSCS 0.01 eL SMM A- en 0.039 SMM A-int 0.201 SMM A- tre -0.157 SMM A- cus 0.025 PU PEU PBV- uti -0.075 PBVsoc 0.097 P- value -0.066 PBVeco -0.072 -0.021 0.003 0.016 -0.086 0.150 0.036 -0.029 0.012 -0.023 -0.012