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IJRDM
37,2 The effect of offline brand trust
and perceived internet confidence
on online shopping intention
126
in the integrated multi-channel
Received 10 April 2008
Revised 20 July 2008
context
Accepted 27 August 2008
Kim Hongyoun Hahn
Apparel and Communication Technologies Department,
University of Wisconsin-Stout, Menomonie, Wisconsin, USA, and
Jihyun Kim
Department of Apparel, Housing, and Resource Management,
Virginia Polytechnic Institute and State University, Blacksburg, Virginia, USA
Abstract
Purpose The purpose of this research is to examine the influences of consumer trust and perceived
internet confidence on consumer apparel shopping intention via the online retailer operated by a
multi-channel retailer.
Design/methodology/approach A total of 261 students in a large US Midwestern University
participated in the paper-based survey and provided usable responses. Structural equation modeling
was used to test hypotheses.
Findings Consumer trust in an online retailer was a significant predictor of perceived internet
confidence and search intention for product information via the online retailer. Search intention for
product information via the online store and perceived internet confidence were significant and strong
predictors of consumers behavioral intention toward the online retailer.
Research limitations/implications Limitations of the present study include sampling, which
prevents the generalization of the results to all multi-channel shoppers.
Practical implications The findings of the study suggest that retailers offer an internet channel as
part of a multi-channel retail strategy and provide consistent service throughout their various channels.
Originality/value The paper finds that there are significant influences of consumer trust and
perceived internet confidence on consumer apparel shopping intention via the online retailer operated
by a multi-channel retailer.
Keywords Brand image, Internet shopping, Consumer behaviour, Trust, United States of America,
Retailing
Paper type Research paper
Introduction
International Journal of Retail & Online business is steadily increasing every year, not entirely because of pure
Distribution Management web-based retailers, but also due to multi-channel retailers conducting business both
Vol. 37 No. 2, 2009
pp. 126-141 online and offline. According to comScore Networks, online retail sales in 2006 were
q Emerald Group Publishing Limited
0959-0552
US$102.1 billion, which was a 24 percent increase from 2005 (Burns, 2007). e-Commerce
DOI 10.1108/09590550910934272 sales increase is remarkable over time and will continue by 2010 (Perez, 2006).
According to Jupiter Research, e-commerce retail sales are expected to have a 12 percent Perceived
annual increase and estimated sales of US$144 billion in 2010. Jupiter Research also internet
emphasized that the multi-channel strategy would be more prevalent for a retailers
success (Evans, 2006). confidence
A multi-channel strategy provides the retail company with a competitive edge by
operating two or more retail channels to distribute products to customers. The
multi-channel retailers generate greater revenue than single channel retail operator 127
because they attract more cross-shoppers (Levy and Weitz, 2004). For example,
consumers may view the products online and visit the brick-and-mortar store for the
purchases or vice versa. Retailers can embrace the broader range of customers
(Payne and Frow, 2004) and build more interactive customer relationships by offering
information, products, and customer support using a multi-channel strategy (Freed,
2005; Shop Org., 2001). Multi-channel retailing also provides customers with
convenience of shopping, which is most sought after by the customer. According to
Schramm-Klein and Morschett (2005), the goal of multi-channel retailing is to fulfill all
the needs and requirements of todays consumers that no single purchasing channel
can comply with. As a result, more and more customers are adopting multi-channel
retailing and are becoming multi-channel shoppers. According to the Direct Marketing
Associations 2005 Multi-channel Marketing Report, multi-channel shoppers spend
30 percent more per year in stores than single-channel shopper as cited in Fanelli et al.
(2006). Furthermore, in a survey conducted by the Aberdeen Group (2005), more than
50 percent of retailers reported multi-channel shoppers are more profitable than
single-channel customers. It has been proven in many studies that using various retail
channels, multi-channel shoppers search and purchase products more frequently as
well as spend more money than single channel customers (Dholakia et al., 2005;
Rangaswamy and van Bruggen, 2005; Shankar and Winer, 2005).
In the multi-channel retail environment, consumer trust is the one of the key
elements that enables customers to adopt a multi-channel retail strategy (Schlosser
et al., 2006; Winch and Joyce, 2006). Consumer trust has been acknowledged in
marketing literature as a crucial factor for successful business trades, and in turn, the
development and management for a long-term customer relationship. Trust has been
defined as a willingness to rely on an exchange partner in whom one has confidence,
reliability, and integrity (Morgan and Hunt, 1994; Moorman et al., 1992). The belief in a
persons competence to perform a specific task under specific circumstances is also
pointed out as a facet of the trust concept. We believe that people, who trust a
traditional brick-and-mortar retailer, will have a similar level of confidence in shopping
for products at the online retailer, operated by the traditional store that she or he has
the trusts. Especially, when consumers are uncertain about online shopping, they will
likely rely on the trusted retailers web site (Chaudhuri and Holbrook, 2001).
Purchasing products online often involves various level of risk/uncertainty, especially
when consumers need to provide an online retailer with their personal information
such as credit card numbers. In this vulnerable situation, consumers trust of a
company may reduce any uncertainty that consumers have about online shopping.
Several studies investigated the issues of trust in the online environment (Gefen et al.,
2003; Stewart, 2003; Winch and Joyce, 2006). There is little research investigating the
potential influence of pre-existing consumer trust in an offline brick-and-mortar
retailer on consumers perceptions of internet shopping at the offline retailers web site
IJRDM (Lee et al., 2007; Kuan and Bock, 2007). Lee et al. (2007) examined the influence of trust
37,2 in an offline banking system on consumers online banking perceptions. Kuan and
Bock (2007) investigated the factors affecting the formation of online trust for
consumers of a brick and mortar supermarket retailer. These studies focused on the
offline/online baking industry and supermarket retailing context; however, they did
not address the sensory and interactive nature of different types of shopping behavior
128 such as apparel shopping; where consumers are likely to physically examine the
characteristics of the products (color, size, design, fabric and fit) (Ha and Stoel, 2004).
Because of the nature of hands-on aspect of apparel shopping, apparel online
shopping has been associated with a higher perceived risk (Bhatnagar et al., 2000;
Hawes and Lumpkin, 1986) and this risk has been often linked to trust in online
shopping behavior (Newholm et al., 2004). Therefore, it will be important to examine if
there is a positive relationship between consumer trust in an offline retailer and
perceived confidence while shopping at the retailers online store within a
multi-channel retailing context for apparel products.
Converting online visitors into buyers is one of the biggest problems that many
online businesses face in daily basis. Another significant issue with the online
shopping is that online apparel shopping still lacks critical tactile aspects of an offline
shopping experience. The purpose of this study is to examine the effect of consumer
trust and perceived confidence of internet shopping on their behavioral intentions
towards the online store. Through examining these relationships, this study provided
some ideas to solve several issues involved in both online and offline business for
multi-channel retailers.
Method
Subjects
A total of 262 undergraduate students in a large US Midwestern University
volunteered to participate in this study. College students were selected for two reasons.
From the practitioners perspective, these young adults are potential valuable
customers for multi-channel retailers because they are likely to present strong
purchase power on both online and offline stores (Hogg et al., 1998; Silverman, 2000). In
addition, from the theoretical perspective, college students are generally accepted for
model testing. Our major interest in this study is to build and test the sequential and
multivariate relationships among variables (Calder et al., 1981).
Procedure
We employed a self-administered survey technique to acquire consumers responses to
the questionnaire. Respondents were first asked to recall their favorite traditional
retailer that also operates an online store. They were then asked to identify and write
the retailers name in the blank on the first page of the questionnaire. Next, respondents
were asked to answer questions based upon their prior experiences with the chosen
retailer.
Perceived
confidence of
shopping at the
online store
H1
H5
H4
Behavioral
Consumer trust
H3 intention
in an offline
toward the
store
Figure 1. online store
Proposed conceptual
model explaining the H2 H6
mediating role of Information
perceived internet search intention
confidence in online at the online
shopping store
Instruments Perceived
Three items were developed by the researchers to measure consumer trust in an offline internet
store and had Cronbachs a of 0.93. To measure perceived confidence of shopping at
the online store, we adopted five items of the perceived confidence scale, developed by confidence
Eastin and LaRose (2000). The items had Cronbachs a of 0.91. Information search
intention via the online store was measured using three items, developed by Kim and
Park (2005). The items had a Cronbach a of 0.90. To measure behavioral intention 133
toward the online store, we adopted two items of willingness to purchase via the online
store developed by Kim and Park (2005), one item of willingness to spend more time at
the online retailer from Kim et al. (2007), and one item of willingness to recommend the
online retailer to others from Zeithaml et al. (1996). The items had Cronbach a of 0.89.
All except consumer trust in an offline store were revised to reflect the internet
shopping context. According to Nunnally and Bernstein (1994), all multi-item scales
used in the present study achieved acceptable construct reliabilities (Cronbachs
a . 0.7). A five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly
agree) was used to measure the constructs. Multi-item scales for the model constructs
are exhibited in the Table II with convergent validity test results and factor loadings.
The model constructs had average variance extracted (AVE) values that ranged from
0.64 to 0.81, which are above the cut-off value of 0.50 (Fornell and Larcker, 1981).
Therefore, all constructs achieved adequate convergent validity (Tables I and II).
Respondents were asked to provide some demographic information including age,
ethnic background, and sex. Respondents were also asked to select one favorite retailer
who operates both offline and online channels and then, answer the questions related to
their past shopping experience, such as the number of shopping trips for apparel
purchase via the self-selected traditional retailer, the number of apparel purchases
made in the past 12 months, and the amount of money spent in the self-selected
traditional retailer for apparel purchase. The same questions were repeated for the
online version of the retailer.
Results
Preliminary analyses
The mean age of respondents (n 261) was about 21 years. Approximately, 97 percent
were between the ages of 18 and 25 years. About 80 percent were female. Thus, our
sample is limited to female college students. This demographic group is, however,
meaningful to investigate for apparel multi-channel retailers due to the strong
Correlations
Model constructs Mean SD 1 2 3 4
The H3 proposing the direct effect of consumer trust in an offline retailer on their
behavioral intention toward the online retailer was not statistically supported (H3:
g31 0.01, t 0.21, p , 0.83). H4 and H5 predicting the positive direct effects of
perceived confidence of shopping at the online store on information search intention at
the online store (H4: b 21 0.58, t 8.65, p , 0.001) and behavioral intention toward
the online store (H5: b 31 0.59, t 9.19, p , 0.001) received statistical support.
Finally, the results showed the statistical support for the proposed positive direct effect
of information search intention via the online retailer on behavioral intention toward
the online store (H6: b32 0.37, t 6.00, p , 0.0001). Therefore, all hypotheses,
except H3, were supported.
IJRDM R2 = 0.08*
37,2 Perceived
confidence of
shopping at the
online store 0.59***
0.28***
(9.19)
136 (4.25) R2 = 0.76*
0.58***
(8.65) Behavioral
Consumer trust 0.01 intention
in an offline (0.21) toward the
store
online store
R2 = 0.43*
0.17** 0.37***
(3.04) Information n = 261
(6.00)
search intention X2(81) = 153.43
at the online GFI = 0.93
Figure 2. store AGFI = 0.90
A final model presenting RFI = 0.94
structural path RMR = 0.04
coefficients, t-values, and p = 0.001
R 2 for proposed
hypotheses Notes: Standardized path estimates are reported with t-values in parentheses. * p < 0.05; ** p < 0.01; ***
p < 0.001
138
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Corresponding author
Jihyun Kim can be contacted at: jhkim@vt.edu