Professional Documents
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Consumer Lifestyles and Online Shopping Continuance Intention
Consumer Lifestyles and Online Shopping Continuance Intention
continuance intention
Norzieiriani Ahmad, Azizah Omar and T. Ramayah
DOI 10.1108/17515631011063767 VOL. 11 NO. 4 2010, pp. 227-243, Q Emerald Group Publishing Limited, ISSN 1751-5637 j BUSINESS STRATEGY SERIES j PAGE 227
survey revealed that although there were 11 million internet users in 2005, only 9.3 percent of
them had purchased products or services through the internet (Economist Intelligence Unit,
2006). This implies that internet users are discovering attractive shopping opportunities on
the web, but there are barriers and other concerns preventing them purchasing continuously
via the internet.
Undeniably, even though online shopping facilitates customer purchase through unlimited
information, instantaneous price comparison and 24/7 service, it also raises concern to
online retailers, particularly in retaining online customers. Furthermore, a lot of e-commerce
companies, online retailers in particular, have started to realize that since their competitors
are just a click away, retaining the company’s customer base, in addition to attracting new
customers, is critical for sustaining revenue base, profitability and market share
(Bhattacherjee, 2001a). Attracting and retaining customers in any businesses is
important, not only because repeat customers buy more, and in the process generate
more revenue, but also it costs less to retain them. In this vein, investigating online shopping
continuance intention is deemed important because in an ever-changing electronic market
environment, acquiring new customers may incur higher costs compared to generating
repeat businesses from existing customers. A study conducted by Parthasarathy and
Bhattacherjee (1998) among 214 continuing adopters and 229 discontinuers of online
service subscribers reveals that on average, the cost of acquiring a new customer is five to
ten times greater than the cost of retaining a current one. In addition, a study by Gartner
Group in 1999 reveals that many online businesses are spending around one million dollars
to set up shop on the web (CNET News, 1999). One of the companies represented in the
same study, eBags.com, reveals that the company spent in the ‘‘million-dollar’’ range to set
up its web site and plans to spend more than ten times with the aim of establishing eBags as
a national brand and placing eBags advertisements all over the web. Furthermore,
according to the same study, some companies are spending or planning to spend several
times more on marketing their sites than they spent on setting them up. In fact, several
studies (e.g. Hong et al., 2006; Kim et al., 2007) also mention that infrequent and ineffective
use of IT after initial adoption may incur undesirable costs or result in a waste of effort in
developing the IT. Thus, it is now firmly believed that the acceleration of heavy investment in
venturing into online businesses is a waste of effort if consumers discontinue purchasing
online. Hence, in order to make sure that all heavy investments to develop web-based
applications are not a waste of effort, identifying factors that could motivate internet users to
repurchase particularly through online shopping is very crucial.
In the online shopping environment, consumers are free to shop at different web sites and
they are able to switch from one web site to another in just a click. The ease of switching and
the ability to quickly gather almost complete information have empowered online customers
with a new set of power tools in their decision making. Provided with the latest information on
every aspect of products being sold online from numerous choices of web sites, there is little
to inhibit customers from switching suppliers or from changing where they would shop
(Reibstein, 2002). The switching behavior of online consumers occurs when the quality of the
customer’s experience falls below a certain threshold either relative to the competition or
relative to their own expectations (Kon, 2004). As noted by Michman et al. (2003, p. 67), ‘‘the
product or brand switching behavior of customers occurs not just because they are
dissatisfied with a present brand of products or services, instead a change in consumer
lifestyles is another likely reason for a change in consumer preference’’. In addition,
Kucukemiroglu (1999) also pointed out that lifestyles describe the behavior of individuals
and groups of interactive people in defining potential consumers. Based on the idea ‘‘the
more you know and understand about consumers, the more effectively you can
communicate and market to them’’ (Plummer, 1974, p. 33), the study of people’s values
and lifestyles has become a standard tool for both social scientists and marketers around
the world (Chu and Lee, 2007). Bellman et al. (1999) point out that the most important
information for predicting shopping behaviors (online and offline) are measures of consumer
lifestyles, not demographics. In other word, to run a shopping web site effectively, online
retailers should be acquainted with consumers’ lifestyles and characters (Chu and Lee,
2007). To address this need, this paper therefore focuses on examining the extent of online
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shopping continuance in Malaysia and identifying the lifestyle factors that influence
consumers’ intention to repurchase online.
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Table I Review of the literature in online shopping continuance intention studies
Researcher Independent variable Dependent variable Key findings
Khalifa et al. (2001) Satisfaction (product Stickiness/repurchase Provide strong support for the importance of
satisfaction, sales satisfaction in explaining repurchase and for the
process satisfaction, moderating effect of online shopping habit on the
after-sales service relationship between satisfaction and repurchase
satisfaction)
Moderator: Online
shopping habit
Ju and Hsu (2004) Disconfirmation, Website continuance Demonstrated the importance of disconfirmation and
interpersonal influence, intention satisfaction with prior use in applying TPB to study
external influence, the motivational factors in an individual’s website
perceived behavioral continuance. Thus, disconfirmation and satisfaction
control with prior use might also be an important
Mediator: satisfaction, consideration in the design of websites
attitude
Jiang and Rosenbloom Customer price Customer intention to Indicated that after-delivery satisfaction has a much
(2005) perception return stronger influence on both overall customer
Customer satisfaction at Customer overall satisfaction and intention to return than at-checkout
check-out satisfaction satisfaction, and that price perception, when
Customer satisfaction measured on a comparative basis, has a direct and
after delivery positive effect on customer overall satisfaction and
intention to return
Hsu et al. (2006) Disconfirmation, attitude Continuance intention The large effect size of disconfirmation suggests that
Mediator: satisfaction, users view realizing their expectation as being critical
perceived behavioral in forming affect and intention to continue using
control, internal online shopping
influence, external
influence
Atchariyachanvanich Confirmation, customer Repurchase The results pointed out that not only basic factors of
et al. (2006) loyalty, perceived confirmation, satisfaction, perceived usefulness, and
incentive perceived incentives, but also a new factor, i.e.
Mediator: satisfaction, customer loyalty, are factors significantly influencing
perceived usefulness online customers’ intention to repeat purchase
through the internet. This study sheds light on the
development of online incentive technology and the
means of enhancing customer loyalty to promote
online repurchasing
Tsai et al. (2006) Antecedents: expected Consequence: Perceived switching costs and community building
value sharing, perceived repurchase intention exert the greatest impact on repurchase intentions
switching costs, through switching barriers and overall satisfaction.
community building, Furthermore, relational orientations significantly
perceived service moderate the link between switching barriers and
quality, perceived trust repurchase intentions
Drivers: switching
barriers, overall
satisfaction
Moderator: relational
orientation
Min (2007) Disconfirmation, Intention to continue Trust and shopping enjoyment also are identified as
perceived usefulness, transaction two motivators of behavioral intention towards
perceived risk, trust, continuous use of online shopping. The effect of
shopping enjoyment shopping enjoyment is much lower than both trust
Mediator: satisfaction and satisfaction. To some extent, when consumers
accept online shopping, they pay more attention to
the products themselves. Perceived risk is identified
to have a direct effect on the consumer’s satisfaction
and its effect on satisfaction is greater than perceived
usefulness. Different from EDM, continued use of
online shopping in e-commerce may not have one
motivator of satisfaction to measure
(Continued)
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Table I
Tsai and Huang (2007) Community building, Repurchase intentions Customers are motivated to remain with a particular
overall satisfaction, e-retailer due to constraint-based, desire-based,
switching barriers, customization-based, and community-based
customization attachments. Community-based attachment
dominated the other factors. Switching barriers in
online settings were positively related to repurchase
intentions. When customers perceived an e-retailer
as unique or considered that the switching costs
associated with changing was too high, they locked
into the relationship and buffered themselves from
information about alternative providers.
Customization had no direct effect on repurchase
intentions but had a significant indirect effect.
Customized offerings in online settings may attract
customer attention, but they may not directly and
effectively enhance customer loyalty
Khalifa and Liu (2007) Perceived usefulness Online repurchase Findings demonstrated that such models (IS
Mediator: online intention continuance model) may not be fully sufficient for
shopping satisfaction explaining online shopping and that a contingency
Moderator: online theory was needed (i.e. moderating factors of the link
shopping habit, online between satisfaction and repurchase intention should
shopping experience be included). Confirmed the argument for the
development of a contingency theory to account for
the novelty of the online channel. Verified the
conceptual distinction of the habit and experience
constructs, reinforcing the argument of previous
studies that experience is necessary but not
sufficient for the formation of habit. Demonstrates that
habitual customers are worth similar attention despite
they may not have a long history of online shopping
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Table II Review of the literature on different internet technology adoption studies in Malaysia
Researcher Independent variable Dependent variable Key findings
Ndubisi and Sinti (2006) Attitude (importance to Internet banking The results reveal that the attitudinal factors play a
banking needs, adoption significant role in internet banking adoption. The
compatability, findings show that attitudinal disposition and
complexity, trialability webpage features can predict internet banking
and risk) internet banking adoption. Four attitudinal factors have strong
features (utilitarian influences on adoption namely importance to
orientation and hedonic banking needs, compatibility, complexity, and
orientation) trialability, whereas risks have a weak influence.
Utilitarian orientation of the website rather than
hedonic orientation has significant influence on
adoption
Gopi and Ramayah Attitude, subjective norm Behavioral intention Findings show that attitude, subjective norm and
(2007) and perceived perceived behavioral control have a direct positive
behavioral control relationship towards behavioral intention to use
internet stock trading. This study suggests that the
theory of planned behavior can be used to explain
variation in behavioral intention and actual usage
Amin (2007) Perceived usefulness Behavioral intention The results suggest that PU, PEOU and PC had a
(PU), perceived ease of significant relationship with behavioral intention.
use (PEOU), perceived Further, these measures are good determinants for
credibility (PC) and undergraduate acceptance for internet banking.
computer self-efficacy Results also suggest that PU and PEOU had a
significant relationship with CSE. On the contrary,
CSE did not associate with PC. Also, PEOU had a
significant relationship with PU and PC that indicate
these scales are related to PEOU in explaining
undergraduate preference
Suki et al. (2008) Perceived ease of use Online buying intention The survey showed that PU, product search, search
(PEOU), perceived process, CA, FI, and online experience have a
usefulness PU), cognitive significant impact on online shopping, while the other
absorption (CA) and two variables (i.e. CA and FI) do not have an impact
fashion involvement (FI) on online shopping
Amin (2008) Perceived usefulness Usage intentions Results suggest that TAM constructs are sufficient to
(PU), perceived ease of explain the newly emerging context of mobile credit
use (PEOU), perceived in Malaysia but additional features should be added
credibility (PC), the to better reflect this system. The results indicate that
amount of information PU, PEOU, PC and the amount of information
about mobile credit contained on mobile phone credit cards are
cards (AIMC), and important determinants to predicting the intentions of
perceived Malaysian customers to use mobile phone credit
expressiveness (PE) cards. However, PE is not an important determinant in
predicting the intentions of Malaysian customers to
use mobile phone credit cards
Poon (2008) Convenience of usage, E-banking adoption Results indicate that all elements for ten identified
accessibility, features factors are significant with respect to the users’
availability, band adoption of e-banking services. Privacy and security
management and image, are the major sources of dissatisfaction, which have
security, privacy, design, momentously impacted users’ satisfaction.
content, speed, and fees Accessibility, convenience, design and content are
and charges sources of satisfaction. Besides, the speed, product
features availability, and reasonable service fees and
charges, as well as the bank’s operations
management factor are critical to the success of the
e-banks. WAP, GPRS and 3G features from mobile
devices are of no significance or influence in the
adoption of e-banking services in this study. Results
also reveal that privacy, security and convenience
factors play an important role in determining the
users’ acceptance of e-banking services with respect
to different segmentation of age group, education
level and income level
(Continued)
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Table II
Ramayah et al. (2009) Attitude (perceived Behavioral intention Findings show that attitude and subjective norm have
usefulness and a direct positive relationship towards behavioral
perceived ease of use) intention to use internet stock trading. Attitude was
Subjective norm significantly influenced by perceived ease of use and
(injunctive norm and perceived usefulness whereas subjective norm was
descriptive norm) significantly influenced by injunctive norm and
descriptive norm, which were proposed as
antecedents
Rouibah et al. (2009) Perceived ease of use, Behavioral intention Findings reveal that perceived ease of use,
perceived usefulness, perceived usefulness, attitude, subjective norms and
attitude, subjective perceived behavioral control have a direct positive
norms and perceived effect on behavioral intention to use. However,
behavioral control attitude toward behavior has the highest effect,
followed by perceived usefulness, and subjective
norm, while perceived behavioral control exerts the
weakest effect. Findings also found TPB model has
the best explanatory power, followed by TRA and
TAM models
Tan et al. (2009) Internet-based ICT The results suggest that internet-based ICT adoption
adoption provides a low cost yet effective communication tool
for customers. However, security continues to be a
major barrier. Finding on cost as a barrier is mixed.
The inferential statistics reveal that relative
advantage, compatibility, complexity, observability,
and security are significant factors influencing
internet-based ICT adoption
Hsbollah and Idris (2009) Perceived attributes of E-learning adoption This study indicates that the adoption decision as a
innovation (relative dependent variable is well predicted by relative
advantage, compatibility, advantages and trialability. The research model
complexity, trialability, showed a reasonably good fit with the data and
observability) empirical results confirm that only relative
Demographical advantages, trialability and academic specialization
Information (gender, age, positively influence the adoption decision. The
academic specialization, findings have provided evidence of the importance of
number of years in the relative advantages, trialability and academic
organization) specialization in understanding the adoption
decision before introducing new online technology
and instructional delivery in education. The findings
also indicated that there is no significant relationship
between gender, age, and numbers of years in UUM
with the adoption decision
Tong (2009) Perceived usefulness, Behavioral intention to This paper has identified few key indicators to
perceived ease of use, use e-recruitment adoption, thus contributing to the
perceived privacy risk, existing knowledge in the human resources literature,
performance particularly in recruitment. The PEOU construct
expectancy, application indicates that the employed jobseekers could
specific self-efficacy, comprehend and become familiar with the operation
perceived stress of e-recruitment technology quickly over time.
Employed jobseekers perceived usefulness (PU) in
e-recruitment technology is more important and it
indicates that detail job information would lead them
to better decisions
From an economic perspective, lifestyle denotes the way individuals allocate their income,
both in terms of relative allocations to different products and services and specific choices
within this group (Zablocki and Kanter, 1976). Along the same line, Mitchell (cited in Lin,
2003) indicates that lifestyles are specific patterns of individuals’ behaviors, and those
behaviors result from those individuals’ inner values. Furthermore, lifestyle could be
identified as distinctive characteristics or an individual’s typical way of life (Horley et al.,
1988). One’s lifestyle is a function of inherent individual characteristics that have been
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shaped and formed through social interaction as one evolves through the life cycle (Hawkins
et al., 2001). In short, consumer lifestyle is how they live. It includes the products they
purchase, how they consume, what they think, and how they feel toward them.
Understanding and predicting consumer behavior is a vital aspect in marketing and is a
necessary requirement to organizations being marketing orientated thus profitable because
it underpins all marketing activities pursued by them. Over the past few decades, a number
of constructs, for instance, demographics, social class and psychological characteristics
have been found to be useful to better understand the behavior of the consumers (Plummer,
1974). Wells (1975) however, emphasizes that demographic profiles, essential though they
maybe, have not been deemed adequate to influence consumer behavior because
demographics lack richness. Moreover, a study by Plummer (1974) stated that demographic
constructs are insufficient and need to be supplemented with other data. Although social
class and psychological characteristics add more strength to demographics, but it, too,
needs to be complemented regularly in order to get important insights into consumers
(Plummer, 1974). In this vein, Plummer (1974) indicates that lifestyle is one of the most
popular concepts in marketing, used to explain consumer behaviors when demographic
characteristics are not sufficient. In addition, lifestyle is useful to distinguish one group of
people from another when demographic characteristics are not enough to make distinctions
(Demby, 1994; cited in Lee, 2005). This has been supported by Donthu and Garcia (1999):
‘‘Many factors are helping the development of the Internet market, some related to
technological advances, some related to the way the corporate world has changed its
perceptions, and some related to changing lifestyles of consumers’’ (p. 52).
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Psychographics and lifestyle
Psychographics is one of the terminologies used most frequently to explain consumer
behavior. Psychographics and lifestyle are often used interchangeably, but psychographics
is actually the way that lifestyle is made operationally useful to marketing managers.
Psychographics appraises a consumer’s activities, interests, opinions, and values and
correlates them with a consumer’s demographics. Psychographics allow for a more
complete picture of an individual, making it easier to understand how to market products to
them. In his review of 24 articles on psychographics, Wells (1975) denotes that there is no
single definition of psychographics that is commonly accepted. Nevertheless, the definitions
of psychographic research can be recapitulated as quantitative research intended to place
consumers on psychological dimensions (Wells, 1975). Briefly, lifestyle is an important
psychographic category composed of a combination of factors such as activities, interests,
and opinions.
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Table III Lifestyle dimensions
Activities Interests Opinion Demographics
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relationship between travel behavior and healthy-living (Hallab, 1999), to investigate the use
of new media technology consumption (Leung, 1998), to study the effects of lifestyle
dimensions and ethnocentrism on buying decision (Kucukemiroglu, 1999; Kaynak and Kara,
2001; Kucukemiroglu et al., 2006; Spillan et al., 2007), to study the behavior of tourist
consumers (Gonzalez and Bello, 2002) and identify relevant lifestyle factors that affect
consumer adoption of technology products (Lee et al., 2009). Tao (2006) conducted a
cross-cultural study that compared lifestyle characteristics of Taiwanese and US consumers,
and AIOs were used as the measurement of lifestyles.
Conclusion
The main objective of this paper is twofold; to examine the extent of online shopping
continuance in Malaysia and to identify the lifestyle factors that influence consumers’
intention to repurchase online. This study intends to fill the gap in the body of literature
concerning the effects of consumer lifestyle factors on online shopping continuance
intention. From A practical point of view, the findings from this study may benefit IS
practitioners, especially electronic commerce providers (e.g. online retailers, online banks,
online brokerages) whose business models and revenue streams are based on long-term
usage of IT products and services. The results of this study will provide some ideas and
practical suggestions which can be implemented particularly in online shopping in order to
improve its continuance (i.e. customer retention strategies) as effective means of
maintaining the subscriber base, market share and overall revenue of online businesses.
By identifying lifestyle factors and the relationship between lifestyle factors and online
shopping continuance, the online businesses will be able to predict prospective online
shoppers’ intention to repurchase more easily. In doing so, they will be able to develop or
improve future e-commerce sites which will be sensitive to the shoppers’ lifestyle. Also, they
will be able to develop more precise or targeted marketing plans, programs and strategies
according to the lifestyle and continuous intention of their target groups. In order better
penetrate the target markets.
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Management, Consultant for USAINS – Strategic Management and Business
Communication). She obtained her PhD from Monash University, Melbourne, Australia, a
Master of Business Administration from Universiti Sains Malaysia, and a Bachelor of Health
Sciences from Curtin University, Perth, Australia.
T. Ramayah has an MBA from the Universiti Sains Malaysia (USM). Currently he is an
Associate Professor at the School of Management, USM. He mainly teaches courses in
research methodology and business statistics and has also conducted training courses for
local government (Research methods for candidates departing overseas for higher degree,
Jabatan Perkhidmatan Awam). Apart from teaching, he is an avid researcher, especially in
the areas of technology management and adoption in business and education. Thus far, he
has published in several journals such as Information Development, Direct Marketing,
WSEAS Transactions on Information Science & Applications, International Journal of
Learning, The International Journal of Knowledge, Culture and Change Management, Asian
Journal of Information Technology, International Journal of Services and Technology
Management, International Journal of Business Information Systems, Journal of Project
Management, Management Research News, International Journal of Information and
Operations Management Education, International Journal of Services and Operations
Management, Engineering, Construction and Architectural Management and North
American Journal of Psychology. Having his contributions in research acknowledged, he
is constantly invited to serve on the editorial boards and program committees of several
international journals and conferences of repute. In addition, T. Ramayah has collaborated
with noted companies from various disciplines of business through multiple consultancy
projects. To date, his consulting experience includes research conducted for companies
such as Tesco, World Fish Center, MIMOS, etc. As well as to consultancy projects,
T. Ramayah is also actively involved in short-term research grants. He has completed two
research grants, one in the area of organizational behavior and the other in the validation of a
new methodology, and has another ongoing research grant concerning the preservation of
batik among Malaysians.
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