Antecedebts of customer repurchase intention - A study of online group-buying in Vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Tu Van Anh ANTECEDENTS OF CUSTOMER REPURCHASE INTENTION A STUDY OF ONLINE GROUP-BUYING IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2013 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Tu Van Anh ANTECEDENTS OF CUSTOMER REPURCHASE INTENTION A STUDY OF ONLINE GROUP-BUYING IN VIETNAM ID: 60340102 MASTER OF BUSINESS (Honours) SUPERVISOR: Prof LE NGUYEN HAU Ho Chi Minh City – Year 2013 ACKNOWLEDGEMENT This thesis could not be finish without the help and support of many people who are gratefully acknowledged here At the very first, I would like to express my deepest gratitude to my supervisor, Prof Le Nguyen Hau With his guidance, I could have worked out this thesis He had offered me valuable suggestions and criticisms with his profound knowledge in rich research experience I am grateful to express my sincere to Prof Nguyen Dinh Tho I have learned from him a lot not only about research design, but also data analysis technique I am also extremely to give thankful to UEH – International School of business (ISB) supported me in all process I would like to extent my sincere thanks to all my classmate and friends Their kindness and supports have contributed very much in my working process Most important, I would like to express my most sincere thanks to my father, my mother and my brother for their continuous encouragement and support Declaration I hereby declare that this thesis, to the best of my knowledge and belief, is my own work and effort and that is has not been submitted, either in part or whole, anywhere for any award Information and ideas taken from other sources as cited as such This work has not been published Signature: Tu Van Anh Date: 18/02/2013 TABLE OF CONTENTS ABSTRACT CHAPTER INTRODUCTION 1.1 Research interest 1.2 Motivation of the study 1.3 Research objectives 1.4 Methodology and scope of research 1.5 Research structure CHAPTER THEORETICAL BACKGROUND 2.1 Introduction 2.2 Theoretical background 2.2.1 Online group-buying model 2.2.2 IS repurchasing behavior model 2.2.2.1 Online customer retention 10 2.2.2.2 Online group-buying repurchase model 13 2.2.3 Website quality 14 2.3 Research model 16 2.3.1 Perceived Usefulness 19 2.3.2 Customer satisfaction 20 2.3.3 Customer trust 20 2.3.4 Hypotheses related to website quality 21 2.4 Conclusion 23 CHAPTER RESEARCH METHOD 24 3.1 Introduction 24 3.2 Research design 24 3.3 Instrument construction 26 3.4 Pilot test results 29 3.4.1 Cronbach Alpha 29 3.4.2 EFA for website quality scales 31 3.5 Conclusion 32 CHAPTER ANALYSIS AND RESULTS 33 4.1 Introduction 33 4.2 Respondents demographic 33 4.3 Scale validation 34 4.3.1 Preliminary results 34 4.3.2 Confirmatory factor analysis (CFA) 38 4.3.2.1 CFA results 38 4.3.2.2 Saturated model 43 4.4 Modified research model 45 4.5 Model fitness 46 4.6 Bootstrap 47 4.7 Hypotheses testing 48 4.8 Conclusion 49 CHAPTER CONCLUSIONS AND LIMITATIONS 50 5.1 Introduction 50 5.2 Discussion and conclusion 50 5.3 Managerial implications 52 5.4 Limitations and future research 54 REFERENCES APPENDICES LIST OF FIGURE Figure 2.1 A post-acceptance model of IS continuance 11 Figure 2.2 Research model 19 Figure 3.1 Research process 25 Figure 4.1 CFA model of online group-buying repurchase intention scale 39 Figure 4.2 CFA model of trust scale 40 Figure 4.3 CFA model of satisfaction scale 40 Figure 4.4 CFA model of website quality scale 41 Figure 4.5 Saturated model of main survey 44 Figure 4.6 Modified research model 46 Figure 4.7 SEM result of research model (Standardized) 46 LIST OF TABLE Table 2.1 Some integrated models of customer retention 12 Table 3.1 Sources of questionnaire items 28 Table 3.2 Cronbach alpha result of pilot test 30 Table 3.3 EFA result of pilot test 32 Table 4.1 Respondents demographic 34 Table 4.2 Cronbach alpha result 35 Table 4.3 EFA result of main study 37 Table 4.4 Confirmatory factor analysis of measurement model 42 Table 4.5 Relationship between constructs of research 45 Table 4.6 Relationship between constructs in research model (standardized) 47 Table 4.7 Bootstrap estimate result with N = 1000 47 Table 4.8 Result of hypotheses testing 48 LIST OF ABBREVIATION AVE Average Variance Extracted CFA Confirmatory Factor Analysis CR Composite Reliability ECM Expectation-Confirmation Model ECT Expectation-Confirmation Theory EFA Exploratory Factor Analysis E-commerce Electronic commerce E-SQ Electronic commerce – Service quality IS Information System ML Maximum Likelihood OGB Online group-buying SEM Structural Equation Model SPSS Statistical software package TAM Technology Acceptance Model TPB Theory of Planned Behavior TRA Theory of Reasoned Action ABSTRACT Online group-buying has emerged as a new e-commerce model and received attention in both academics and practice Prior researches focused on investigating online group-buying mainly from the marketing perspective, such as the transaction process, price mechanism, and benefits (Li & Liu, 2012) Few of studies have investigated the relation between consumer’s acceptance and their purchasing behavior Hence, this study focuses in measuring relationship between cognitive factors – trust, satisfaction and perceived usefulness – and online group-buying repurchase intention Simultaneous, this study also integrates website quality - a direct and indirect variable – to measure its impact on customer repurchase behavior To examine research model, information and data is accessed by using questionnaire for respondents more than 18 years old and have ever purchased on online group-buying websites Sample size of this quantitative research is 365 respondents Confirmatory factor analysis (CFA) is used to test measurement scale and the structural equation modeling (SEM) is used as the main method for analyzing research model and hypotheses Results in this study show that individual user’ intention to repurchase in online group-buying websites is motivated by trust, satisfaction and website quality Among three impact factors, website quality has the strongest direct influence, followed by trust and satisfaction Besides direct influence, website quality also has indirect impact on customer repurchase intention through both of trust and satisfaction Trust also has strong impact on customer satisfaction, thus, affect indirectly to customer retention With these results, research framework can be seen fitted with data market Study results also suggest that in order to increase customer retention should not only consider about their strategies of increasing trust and satisfaction, they should also take consideration of increasing website quality, especially in content quality and technical adequacy Chiu, C.M., Hsu, M.H., Lai, H., Chang, C.M (2012) Re-examining the influence of trust on online repeat repurchase intention: The moderating role of habit and its antecedents Decision Support Systems, 53, 835-845 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Management, 30, 481-492 Wen, C.,Victor R.PryButok & Xu, C.Y (2011) An integrated model for customer online repurchase intention Journal of computer Information Systems, 52(1), 14-23 Yoo, B., Donthu, N (2001) Developing a scale to measure the perceived quality of Internet shopping sites (SITEQUAL) Quarterly Journal of Electronic Commerce, 2(1), 31-47 Zang, Y., Fang, Y., Wei, K.K., Ramsey, E., McCole, P., Chen, H (2011) Repurchase intention in B2C e-commerce – A relationship quality perspective Information & Management , 48, 192-200 LIST OF APPENDICES Appendix A: Review of the main studies on the dimensions of website quality Appendix B: EFA results of main survey before removing items Appendix C: SEM results of research model (unstandardized) Appendix D: SEM results of research model (standardized) Appendix E: Bootstrap distribution results Appendix F: Questionnaire Appendix A: Review of the main studies on the dimensions of website quality Authors Dabholkar (1996) Loiacono, Watson, Goodhue (2000) Research context E-service Web retail site Zeithaml et al (2000) Yoo & Donthu (2001) Online retailing Web retail site Cox & Dale (2001) Jun & Cal (2001) E-commerce service Internet banking service Online retailing Web retail site Online service Virtual business operation Yang (2001) Aladwani and Palvia’s (2002) Zeithaml et al (2002) Madu & Madu (2002) Yang and Jun (2002) Wolfinbarger & Gilly (2002,2003) Surjadaja et al (2003) Santos (2003) Iwaarden & Wiele (2003) Yang et al Online retailing service Online retailing service E-service E-service in e-commerce E-commerce service Internet Key dimensions of website quality Website designs, reliability, delivery, ease of use, enjoyment and control WEBQUAL: ease of understanding, intuitive operation, informational fit-to-task, tailored communication, trust, response time, visual appeal, innovativeness, emotional appeal, online completeness, relative advantage, and consistent image Efficiency, reliability, fulfillment, privacy, responsiveness, compensation, and contact SITEQUAL: aesthetic design, competitive value, ease of use, clarity of ordering, corporate and brand equity, security, processing speed, product uniqueness, and product assurance quality Website appearance, communication, accessibility, credibility, understanding and availability Website design, information, ease of use, access, courtesy, responsiveness, and reliability Website design, information and security Specific content, content quality, appearance, and technical adequacy Security, communication, reliability, responsiveness and delivery Performance, features, structure, aesthetics, reliability, service ability, security and system integrity, trust, responsiveness, service differentiation and customization, web store police, reputation, assurance and empathy Website design, security, reliability, responsiveness, accessibility and customization Website design, security, reliability, customer service Interaction, security, reliability, responsiveness, information, delivery, customization Ease of use, appearance, linkage, structure, content, efficiency, communication, security, reliability, incentive and customer support SERVQUAL: tangibles, reliability, responsiveness, assurance, and empathy Credibility, ease of use, security, reliability, (2003) retailing service Yang et al (2004) Field et al., (2004) Kim & Stoel (2004) Shopping sites E-service Yang & Fang (2004) Gounaris et al (2005) Panasuraman et al (2005) Online apparel website Online securities brokerage Online retailing service E-service Lee & Lin (2005) Online retailing service Cao et al (2005) E- service Kim et al (2006) Fassnacht & Koese (2006) Critobal et al (2007) Sohn & Tadisina (2008) Online retailing service E- service Online service Online financial service responsiveness, convenience, communication, access, competence, courtesy, personalization, collaboration, aesthetics Competence, security, reliability, responsiveness, ease of use and product portfolio Website design, security, reliability, customer service Web appearance, entertainment, information, transaction capability, responsiveness and trust Responsiveness, reliability, credibility, competence, access, courtesy, communication, information and web design Website design, information, trust, responsiveness and reputation Core e-SQ: Efficiency, fulfillment, availability, privacy Recovery e-SQ: responsiveness, compensation and contact Website design, reliability, responsiveness, trust and personalization System quality, information quality, service quality, and attractiveness Efficiency, fulfillment, system availability, privacy, responsiveness, compensation, contact, information and graphic style Graphic quality, layout, attractiveness of selection, information, ease of use, technical quality, reliability, functional benefit and emotional benefit Website design, customer service, assurance and order management Trust, speed of delivery, reliability, ease of use, customized communication, website content and functionality Source: Li (2010); Li & Suomi (2009) Appendix B: EFA results of main survey before removing items TA41 TA38 TA37 TA36 TA39 TA35 TA40 TA34 AP31 AP32 AP33 AP29 SC26 PU1 PU3 PU2 SAT5 PU4 SAT6 SAT7 SAT8 INT18 INT17 INT16 INT14 INT15 TR11 TR13 TR12 TR10 TR9 CQ24 CQ21 CQ20 CQ19 CQ22 CQ23 SC27 SC28 SC25 AP30 Eigen value Extracted Variance 872 854 852 837 793 717 673 527 522 506 496 367 247 Factor loading 201 361 -.288 -.238 291 349 -.215 334 201 733 681 619 615 604 514 496 487 -.288 -.225 283 400 332 410 874 766 743 706 446 210 205 234 704 629 523 519 513 416 379 764 759 756 753 668 255 894 866 493 399 -.244 269 289 18.302 2.768 1.332 1.111 830 777 44.638 6.752 3.248 2.710 2.025 1.896 Appendix C: SEM results of research model (unstandardized) ML TR SAT SAT TA CQ INT INT INT CQ23 CQ21 CQ20 CQ19 SAT5 SAT6 SAT7 SAT8 INT14 INT16 INT17 INT18 TR13 TR12 TR11 TR9 TA38 TA37 TA36 TA35 TA39 TA40 TA41 PU4 < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < - WQ WQ TR WQ WQ WQ TR SAT CQ CQ CQ CQ SAT SAT SAT SAT INT INT INT INT TR TR TR TR TA TA TA TA TA TA TA SAT Estimate 1.009 0.375 0.507 0.95 0.533 0.325 0.304 1.113 1.111 0.968 1.013 0.897 0.836 0.954 1.019 1.002 0.965 1.015 0.885 0.941 0.928 0.899 0.941 0.843 0.985 0.818 S.E 0.09 0.118 0.087 0.084 0.112 0.081 0.06 0.068 0.066 0.067 0.042 0.046 0.047 0.048 0.049 0.047 0.046 0.049 0.055 0.049 0.052 0.055 0.053 0.051 0.054 0.051 Bootstrap C.R SE 11.221 0.103 3.187 0.16 5.812 0.122 11.375 0.098 4.777 0.156 4.016 0.113 5.063 0.108 16.481 0.062 16.721 0.075 14.545 0.075 24.389 0.035 19.602 0.051 17.806 0.052 19.678 0.053 20.862 0.049 21.157 0.043 20.853 0.042 20.585 0.041 15.953 0.057 19.16 0.039 17.992 0.056 16.274 0.063 17.829 0.056 16.494 0.055 18.092 0.052 16.122 0.049 SE-SE 0.002 0.004 0.003 0.002 0.003 0.003 0.002 0.001 0.002 0.002 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 Mean 1.015 0.382 0.509 0.963 0.533 0.337 0.299 1.111 1.11 0.967 1.014 0.894 0.835 0.956 1.02 1.005 0.965 1.016 0.886 0.94 0.93 0.904 0.944 0.846 0.989 0.82 Bias SE-Bias 0.006 0.003 0.007 0.005 0.002 0.004 0 0.013 0.003 0.005 0.012 0.004 -0.006 0.003 0 -0.001 0.002 -0.001 0.002 -0.001 0.002 0 0.001 0.001 -0.003 0.002 -0.001 0.002 0 0.002 0.002 0.001 0.002 0.003 0.001 0 0.001 0.001 0.001 0.001 0.002 0 0.001 0.002 0.002 0.004 0.002 0.003 0.002 0.003 0.002 0.004 0.002 0.001 0.002 Appendix D: SEM results of research model (standardized) ML TR SAT SAT TA CQ INT INT INT CQ23 CQ21 CQ20 CQ19 SAT5 SAT6 SAT7 SAT8 INT14 INT16 INT17 INT18 TR13 TR12 TR11 TR9 TA38 TA37 TA36 TA35 TA39 TA40 TA41 PU4 < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < - WQ WQ TR WQ WQ WQ TR SAT CQ CQ CQ CQ SAT SAT SAT SAT INT INT INT INT TR TR TR TR TA TA TA TA TA TA TA SAT Estimate 0.778 0.284 0.499 0.794 0.889 0.381 0.301 0.287 0.765 0.838 0.849 0.749 0.879 0.903 0.802 0.758 0.853 0.827 0.856 0.863 0.852 0.864 0.857 0.726 0.827 0.836 0.802 0.748 0.797 0.755 0.805 0.711 Bootstrap SE 0.042 0.113 0.114 0.039 0.033 0.107 0.102 0.099 0.03 0.023 0.022 0.037 0.018 0.015 0.027 0.033 0.021 0.027 0.022 0.021 0.02 0.019 0.02 0.039 0.027 0.027 0.023 0.033 0.03 0.031 0.022 0.03 SE-SE 0.001 0.003 0.003 0.001 0.001 0.002 0.002 0.002 0.001 0.001 0.001 0 0.001 0.001 0.001 0.001 0 0 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 Mean Bias SE-Bias 0.776 -0.001 0.001 0.285 0.001 0.004 0.498 0.004 0.793 -0.001 0.001 0.89 0.002 0.001 0.377 -0.003 0.003 0.31 0.009 0.003 0.28 -0.006 0.003 0.766 0.001 0.001 0.837 0.001 0.849 0.001 0.749 0.001 0.879 0.001 0.904 0 0.8 -0.002 0.001 0.757 -0.001 0.001 0.853 0.001 0.827 0.001 0.856 0.001 0.864 0.001 0.001 0.851 -0.001 0.001 0.863 -0.001 0.001 0.857 0.001 0.725 -0.001 0.001 0.826 -0.001 0.001 0.835 -0.002 0.001 0.802 0.001 0.749 0.002 0.001 0.797 0.001 0.756 0.001 0.001 0.806 0.001 0.001 0.711 0.001 Appendix E: Bootstrap distribution results N = 1000 Mean = 805.227 S e = 2.574 613.483 654.047 694.611 735.175 775.739 816.303 856.867 897.431 937.995 978.559 1019.123 1059.687 1100.251 1140.815 1181.379 | -|* |*** |********* |************** |******************** |***************** |************** |******** |***** |*** |** |* |* | |* | ML discrepancy (implied vs pop) (Default model) N = 1000 Mean = 564.556 S e = 876 504.457 517.298 530.140 542.981 555.822 568.664 581.505 594.346 607.188 620.029 632.870 645.712 658.553 671.394 684.236 | -|* |*** |********** |**************** |******************* |***************** |*********** |******** |***** |*** |** |* |* |* |* | K-L overoptimism (unstabilized) (Default model) N = 1000 Mean = 224.248 S e = 11.232 -960.417 -798.364 -636.312 -474.259 -312.206 -150.154 11.899 173.952 336.004 498.057 660.110 822.163 984.215 1146.268 1308.321 | -|* |* |* |*** |******** |************ |****************** |******************** |******************** |************** |*********** |****** |*** |* |* | K-L overoptimism (stabilized) (Default model) N = 1000 Mean = 213.929 S e = 2.525 24.479 59.322 94.166 129.009 163.852 198.695 233.539 268.382 303.225 338.069 372.912 407.755 442.598 477.442 512.285 | -|* |*** |******* |********** |***************** |******************* |***************** |************* |********* |**** |*** |** |* |* |* | Appendix F: Questionnaire Dear yours! I am student of International School of Business of University of Economics Ho Chi Minh City I am making a research about online group-buying model – a form of online shopping – in Vietnam market Hopefully you can spend your precious time to answer the questionnaire below The survey will take about 10 minutes The responses from this survey will be used in a research in online group-buying model All collected material will be used confidentially so that individual respondents will not be tracked Thank you for taking the time to complete the survey Part 1: Information about the respondents’ experience 1/ Do you know online group-buying model?  Yes  No 2/ Have you ever used online group-buying model?  Never and have no intention to so  Not yet but I have intention in it  Yes, 1- times  Yes, more than times 3/ List some online group-buying websites which you usually purchase (maximum websites) ……………………………………………………………………………………… 4/ Among websites you listed in question 3, which online group-buying website you use most regularly (website X)? ……………………………………………………………………………………… Part 2: Based on your purchasing experience of website you answered in question (website X), please comment your level of agreement on the following statement: Your level of agreement is measured by a seven-point Likert scale (from 1- strongly disagree to 7- strongly agree) with the corresponding number: 1234567- Strongly disagree Disagree Disagree some what Neutral Agree somewhat Agree Strongly agree Strongly disagree Strongly agree Using website X improves my performance in finding out groupbuying products Using website X increases my productivity in group-buying Using website X provides me with more diverse channels to enhance my effectiveness in group-buying products As for overall platform design, I find website X useful 2 3 4 5 6 7 I was very satisfied with my experience to website X I was very pleased with my experience to website X I was absolutely delighted with my experience to website X I think I made a right decision when using website X 1 1 2 2 3 3 4 4 5 5 6 6 7 7 I feel safe on my transaction with website X I believe website X can protect my privacy I select website X, which I believe are honest I feel that website X would provide me with good service I feel that website X is trustworthy 1 1 2 2 3 3 4 4 5 5 6 6 7 7 I intend to continue to purchase goods from website X I intend to acquire product information from website X I intend to recommend website X to people around me I intend to use website X as the priority online store for future purchases Except for any unanticipated reasons, I intend to continue to use website X 1 1 2 2 3 3 4 4 5 5 6 6 7 7 Perceived website quality The content of website X is useful The content of website X is complete The content of website X is clear The content of website X is current The content of website X is concise The content of website X P is accurate Strongly disagree 2 2 2 3 3 3 4 4 4 5 5 5 Strongly agree 7 7 7 10 In website X, one can find contact information In website X, one can find details about products and/or services In website X, one can find information related to customers’ policies In website X, one can find information related to customer service 2 3 4 5 6 7 7 Website X looks attractive Website X looks organized Website X uses fonts properly Website X uses colors properly Website X uses multimedia features properly 1 1 2 2 3 3 4 4 5 5 6 6 7 7 Website X looks secured for carrying out transactions Website X looks easy to navigate through Website X has adequate search facilities Website X is always up and available Website X has valid links Website X load fast Website X has many interactive features Website X is easy to access 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 6 6 6 6 7 7 7 7 Part 3: Individual Information 1/ What is your gender?  Male  Femail 2/ What is your age?  18 – 22 years  22- 30 years  30-40 years  Over 40 years 3/ What is your annual income?  Under 10 million  10- 20 million  Over 20 million 4/ What is your education background?  Highschool  Bachelor’s level  College student  Master’s level  PhD level 