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5.modelling Repurchase Intention
5.modelling Repurchase Intention
Repurchase
Modelling repurchase intention intention
among smartphones users
in Nigeria
Simon Ayo Adekunle and Jones O. Ejechi
Department of Business Administration, Faculty of Management Sciences,
University of Benin, Benin City, Nigeria Received 18 December 2017
Revised 30 March 2018
15 June 2018
Accepted 10 August 2018
Abstract
Purpose – This study aims to model repurchase intention among smartphones users by using structural
equation modelling. The model was used to determine the impact of service quality measured by convenience,
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functionality and perceived usefulness on users’ satisfaction and repurchase intention. The study also
examined the mediating role of users’ satisfaction on repurchase intention.
Design/methodology/approach – A survey research design was adopted to gather data used for this
study through questionnaire administration. In total, 500 copies of the questionnaire were administered to
smartphones users in Nigeria, and 486 copies of the questionnaire were found usable for data analyses. The
data obtained were analysed using different statistical tools such as mean, standard deviation, correlation,
confirmatory factor analysis and structural equation modelling through the use of Analysis of Moment
Structures software.
Findings – The study revealed that users’ satisfaction is significantly influenced by convenience,
functionality and perceived usefulness. Similarly, repurchase intention is significantly impacted by perceived
usefulness. The results further showed that there is a positive and statistically significant relationship
between users’ satisfaction and repurchase intention. However, convenience and functionality were found to
have positive but statistically insignificant relationship with repurchase intention.
Originality/value – This study contributes to the emerging discourse on the perception of smartphone
users with respect to convenience, functionality, perceived usefulness, satisfaction and repurchase intention in
the Nigerian context. It presents a latest attempt and useful insights on the service quality–users’
satisfaction–repurchase intention nexus among smartphone users in Nigeria.
Keywords Functionality, Modelling, Repurchase intention, Satisfaction, Smartphones
Paper type Research paper
1. Introduction
The ways we create, distribute and consume information have changed significantly in the past
decades due to technological advancements (Arif et al., 2016). The invention and continuous
improvement in mobile phones is one of the evidence of the rapid change in technological
advancements. Mobile phones have become an inseparable part of everyday life, and majority of
people carry them all the time (Smura et al., 2009). Suki and Suki (2007) asserted that “heavy
mobile phone users possess a higher level of knowledge, have more social participation, maintain
extensive interpersonal networks, and have contact with people in different parts of the world.”
A smartphone is a mobile phone with more advanced computing capacity and
connectivity than basic feature phones (Falayi and Adedokun, 2014). According to Norazah
(2013, p. 236):
Journal of Modelling in
[. . .]smartphones are a combination of personal device assistants and mobile phones that use Management
advanced operating systems and permit users to install new applications, be constantly © Emerald Publishing Limited
1746-5664
connected, and provide multifarious functionalities. DOI 10.1108/JM2-12-2017-0138
JM2 Falayi and Adedokun (2014) stated that:
[. . .]early smartphones typically combined the features of a mobile phone with those of another
popular consumer device, such as a personal digital assistant (PDA), a media player, digital
camera, or a GPS navigation unit. Modern smartphones have all of these features plus the features
of a touchscreen computer, including web browsing, wi-fi, and third party applications such as
hotspot.
Norazah (2013) further opined that consumers do not only view smartphones just as devices
for calling and sending text messages but also as multi-use devices for gaming, socializing
and downloading applications which results in a radical shift in behaviour patterns,
lifestyles and status. Smartphones are increasingly entwined in people’s everyday activities
as it gives users easier access to the internet 24 hours a day, seven days a week, and 365
days a year (Norazah, 2013).
Smartphones are no longer perceived as luxury but necessity in people’s daily life (Walsh
and White, 2006). There has therefore been an increase in the diffusion and adoption of
smartphones among individuals in different works of life. This is because the platform
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2. Literature review
This section contains a review of extant literature on repurchase intention, users’
satisfaction and service quality. The links among the three variables were carefully
reviewed.
(1993) focussed on both repurchase intentions and willingness to recommend. In the study
by Cronin and Taylor (1992), service quality does not have a significant (positive) effect on
intentions to purchase again, while Boulding et al. (1993) found a positive relationship
between service quality and repurchase intentions.
Balaji and Sarkar (2013) showed that the severity of failure influences the relationship
between recovery efforts and customer response behaviour such as loyalty and negative
word-of-mouth. Caruana (2002) found that customer satisfaction does play a mediating role
in the effect of service quality on service loyalty. Gonzalez et al. (2007) demonstrated
the influence of service quality and customer satisfaction on behavioural intentions in the
tourism industry. The results revealed a significantly positive influence of service quality
and customer satisfaction on behavioural intentions in the tourism industry.
The studies of Tung (2004) and Kuo et al. (2009) on mobile services in South Korea and
Canada, respectively, found that service quality positively influence customer satisfaction.
Empirical studies have established a positive relationship between customer satisfaction
and repurchase intention (Brady et al., 2001; Cronin et al., 2000). This is in line with Kuo’s
et al. (2009) finding that consumers with a higher level of satisfaction tend to have a stronger
intention to repurchase and recommend the purchased product. This means that repurchase
can be more frequent when customers are satisfied. The studies of Tung (2004) and Gerpott
et al. (2001) on the telecommunication industry in Germany concluded that customer
satisfaction is positively related to repurchase intention.
Finally, previous studies have established a positive and significant relationship between
service quality and repurchase intention (Wang et al., 2004; Alexandris et al., 2002; Cronin
and Taylor, 1992). This implies that high quality service can induce positive repurchase
intention among customers. Ahamed and Skallerud (2015) found that satisfaction leads to
relationship continuity. Fang et al. (2011) found that trust and satisfaction had a direct
positive effect on repurchase intention, but the effect of satisfaction was stronger than that
of trust. Loureiro et al. (2014) found that satisfaction was directly related to repurchase
intention. Similarly, Oliver (1999) opined that satisfaction leads to repurchase or reuse of
products and services.
Scholars such as Anderson et al. (1994) and Annamdevula and Bellamkonda (2016)
asserted that the relationship between service quality and satisfaction is still ambiguous.
Athiyaman (1997) found a strong relationship between service quality and satisfaction while
Annamdevula and Bellamkonda (2016) emphasized stronger empirical evidence to
strengthen the common understanding on the relationship between service quality and
JM2 satisfaction. Taylor and Baker (1994) strongly supported the view that service quality and
satisfactions are separate and distinct constructs. This study aligned with Taylor and
Baker’s (1994) view by measuring service quality (convenience, functionality and perceived
usefulness) and satisfactions separately.
H1. There is no significant relationship between users’ satisfaction and convenience (H1a),
functionality (H1b) and perceived usefulness of smartphones among users (H1c).
H3. Users’ satisfaction does not significantly mediate the relationship between
repurchase intention and service quality.
3. Method
3.1 Research design
A survey research design was adopted for this study. It involves the design of a well-
structured questionnaire, which was administered to a sample of selected smartphones users.
Service Quality
Users’
H1a
Convenience Satisfaction
H2a
H1c
H1b
H3
Functionality
H2b
Perceived Repurchase
Usefulness H2c Intention
Figure 1.
Research model
Source: Researchers’ conceptualization (2017)
3.2 Population of the study Repurchase
The population of the study comprised users of smartphones in Nigeria. Statista, one of the intention
leading statistics companies on the internet, estimated that the number of smartphone users
in Nigeria as at October 2017 is 18 million (Statista, 2017). Hence, the population of the study
is 18 million users of smartphones.
N
n¼
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1 þ Nðe2 Þ
The equation shows that the sample size is 400. However, 500 copies of questionnaire were
administered to smartphone users to compensate for anticipated invalids or improper
completion by respondents. Out of the 500, 486 copies of the questionnaire were found
usable for data analyses. The remaining 14 copies of the questionnaire that were not used
for data analyses were not properly filled by the respondents. The representativeness of the
sample of 486 is justified on the basis of the demographic attributes of the respondents. The
questionnaires were filled by men and women proportionally. Also, the questionnaires were
filled by respondents across different age categories with diverse educational qualification
and usage experience.
statistics such as frequency distribution, mean and standard deviation. The research model
was estimated using SEM.
Smith and Langfield-Smith (2004) described SEM as a way of specifying a series of
structural equations and is useful when dependent variable in one equation becomes an
independent variable in another equation. A structural model is used to study dependence
relationship. SEM was used for data analysis because it is a powerful multivariate technique
for analyzing causal models with an estimation of the measurement and structural
components (Lin et al., 2017).
The measurement component was examined using confirmatory factor analyses.
Confirmatory factor analysis (CFA) specifies the pattern by which each measure loads on a
particular factor (Hair et al., 2010). It concentrates on validating the model and does not
explain the relationships between constructs. It represents how the measured variables
come together to represent constructs and is used for validation and reliability checks. In
other words, CFA is a way of testing how well the measured variables represent a particular
construct.
The adequacy of the results of CFA and the structural equation model were evaluated
using absolute indices, incremental indices and parsimony fit indices. The measures of
absolute indices used include relative/normed chi-square, root mean square error of
approximation (RMSEA), goodness of fit index (GFI) and adjusted goodness of fit index
(AGFI). Incremental or comparative indices were measured by normed fit index (NFI),
Tucker–Lewis index (TLI) and comparative fit index (CFI) while parsimony fit indices were
evaluated using parsimony goodness of fit index (PGFI) and parsimonious normed fit index
(PNFI). Details of the acceptable values of the indices are shown in Table III. This study
used analysis of moment structures (AMOS 24) software. AMOS was used because it is user-
friendly, has an easy-to-use graphical communication interface and offers users the ability to
estimate structural equation models without any need to write syntax or programming
statements (Lin et al., 2017).
Convenience 1
Functionality 0.505** 1
Perceived
usefulness 0.540** 0.612** 1
Users' satisfaction 0.330** 0.583** 0.560** 1
Repurchase Table I.
intention 0.396** 0.595** 0.464** 0.645** 1 Pearson correlation
Note: **Correlation is significant at the 0.01 level (2-tailed) coefficients among
Source: Researchers’ field work (2017) research variables
JM2 4.4.1 Validity and reliability of instrument. Validity of questionnaire was conducted using
construct validity. This was done using both convergent and discriminant validity. Lowry
and Gaskin (2014) asserted that these two methods of assessing construct validity apply to
constructs with multiple indicators or items. As all the constructs have multiple indicators,
they were all tested for construct validity.
In determining convergent validity, Fornell and Larcker (1981) cited in Izogo (2016)
stated that average variance extracted (AVE) must be at least 0.50. The AVE of the
constructs: convenience, functionality, perceived usefulness, users’ satisfaction and
repurchase intention are 0.594, 0.647, 0.660, 0.569 and 0.607, respectively, which are all
above 0.50. Fornell and Larcker (1981) cited in Izogo (2016) also stated that discriminant
validity is established when a construct shares more variance with its indicators than with
any other construct. The discriminant validity for the constructs ranged from 0.814 to 0.906,
which are all above the correlation coefficients in Table I. It can therefore be concluded that
the criteria for establishing convergent and discriminant validity were fulfilled, which
shows that the measurement model demonstrates construct validity. Details of the validity
values are in Table II.
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Two parameters were used in this study to measure the reliability of the questionnaire.
These parameters are Cronbach’s alpha and composite reliability. According to Hair et al.
(2010), the minimum threshold for establishing reliability with Cronbach’s alpha is 0.6 and
0.7 for composite reliability. Table II shows that the Cronbach’s alpha of the constructs
ranged from 0.755 to 0.812, while composite reliability ranged from 0.802 to 0.913. It can
therefore be concluded that the different indicators measuring each construct are internally
consistent.
4.4.2 Confirmatory factor analysis. The collected data were tested for measures of fit
through CFA. In line with Hair et al. (2010) submission that most model fits indices should
reach acceptable standards before a model can be judged to have fitness, nine common
model fit measures were evaluated. The measures are: x 2/df = 2.365, RMSEA = 0.053, GFI
0.909, AGFI = 0.886, NFI = 0.862, TLI = 0.902, CFI = 0.915, PGFI = 0.730 and PNFI = 0.753.
All the indices exhibited acceptable values which indicated a good fit (see Table III for
details).
PUS5 0.827
Users' Satisfaction SAT1 0.734 0.569 0.814 0.755 0.913
SAT2 –
SAT3 0.784
SAT4 0.751
SAT5 0.748
Repurchase Intention RIN1 0.755 0.607 0.904 0.779 0.820
RIN2 0.735
RIN3 0.829
RIN4 0.774
RIN5 0.800
Notes: Item SAT2 under users’ satisfaction was deleted for lack of internal consistency as revealed by Table II.
Cronbach’s alpha reliability test; Hence, the item was not used for data analyses Validity and
Source: Researchers’ fieldwork (2017) reliability scores
Recommended
Indices Measure benchmark Source CFA SEM
β = 1.207
Functionality t = 3.640**
β = 1.046
t = 1.930
β = 0.790
t = 2.417*
Perceived β = –1.307 Repurchase Intention
Usefulness t = –1.971*
R2 = 0.747
Figure 2.
Path coefficients, Not Significant Significant
t-values and
coefficient of Notes: ** and * connote p < 1% and p < 5%, respectively
determination (R2)
Source: Researchers’ computation (2017)
4.730); thus, H3 is rejected. The coefficient of determination (R2) of the two dependent
variables: users’ satisfaction and repurchase intention are 76.1 per cent and 74.7 per cent,
respectively.
5. Discussion of findings
The empirical analyses revealed a number of findings. The study found that service quality
(convenience, functionality and perceived usefulness) significantly influenced users’
satisfaction. This finding supports Arif et al. (2016) assertion that student dependence on
smartphones helps them to work easily or with less effort without discomfort or difficulty. Repurchase
The ability to use smartphones at anytime and anywhere provided there is network facilities intention
make the use of the device convenient for the users. Convenience in the use of smartphones
is also enhanced by quick access to multiple products with greater level of quality, efficiency
and personalization (Persaud and Azhar, 2012). The outcome is also in line with Nathalie
and Henk’s (2013) finding that the introduction of smartphones and applications for mobile
devices has provided enhanced functionality, which has changed the way people
communicate and search for information. Users’ satisfaction with smartphone usage is
possibly influenced positively by the usefulness of the devices such as chatting with friends,
checking emails and Facebook, viewing photo, listening to music and news, taking pictures,
reading e-books, navigating weather, planning activities and managing time using timetable
and alarm, among others (Wang et al., 2014).
The study also revealed a significant relationship between perceived usefulness and
repurchase intention. Users of smartphones who find the device to be useful are more likely
to undertake continued usage (Chiu et al., 2009). This finding is supported by the outcome of
Chiu et al. (2009) that perceived usefulness has a significant effect on customer repurchase
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intention. The significant relationship between service quality (perceived usefulness) and
repurchase intention is also supported by the findings of Wang et al. (2004), Alexandris et al.
(2002) and Boulding et al. (1993) that relationships exist between service quality and
repurchase intentions. Smartphone users who have enjoyed the efficient functioning of the
device will be more likely to exhibit stronger repurchase intentions. However, the study of
Cronin and Taylor (1992) did not support the significant relationship between service
quality and users’ intentions to purchase again.
Finally, this study found a positive and significant relationship between users’
satisfaction and repurchase intention. The study of Choudhury (2013) that found a strong
support for the predictive power of satisfaction on customers’ purchase intentions does
support the outcome of this study.
samples from different major cities in the country. This would give room for comparative
analyses of repurchase intention among smartphone users on the basis of location. Second,
future studies can focus on comparative analysis of repurchase intention of available brands
of smartphones in Nigeria to guide manufacturers and sellers of such brands on designing
marketing strategies that would increase their market shares. Finally, future research works
on the subject matter can increase the number of variables to include peer influence,
perceived ease of use, perceived value, social influence, brand trust, customer support, price,
and so on to possibly improve the coefficient of determination.
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Appendix 1. Questionnaire
Repurchase
intention
JM2 Appendix 2
CON1 235 (48.4%) 121 (24.9%) 18 (3.8%) 57 (11.8%) 55 (11.4%) 3.87 1.413
CON2 244 (50.3%) 184 (37.9%) 36 (7.5%) 15 (3.1%) 7 (1.5%) 4.32 0.852
CON3 229 (47.2%) 165 (34%) 59 (12.2%) 25 (5.2%) 8 (1.7%) 4.20 0.954
CON4 270 (55.6%) 159 (32.8%) 30 (6.2%) 18 (3.8%) 9 (1.9%) 4.36 0.895
CON5 231 (47.6%) 179 (36.9%) 42 (8.7%) 22 (4.6%) 12 (2.5%) 4.22 0.957
Overall mean and standard deviation for convenience 4.20 0.628
FUN1 159 (32.8%) 195 (40.2%) 71 (14.7%) 44 (9.1%) 17 (3.5%) 3.90 1.068
FUN2 143 (29.5%) 197 (40.6%) 67 (13.8%) 62 (12.8%) 17 (3.5%) 3.80 1.104
FUN3 200 (41.2%) 172 (35.4%) 61 (12.6%) 36 (7.5%) 17 (3.5%) 4.03 1.072
FUN4 146 (30.1%) 176 (36.3%) 96 (19.8%) 49 (10.1%) 19 (4%) 3.78 1.099
FUN5 113 (23.3%) 186 (38.3%) 89 (18.4%) 75 (15.5%) 23 (4.8%) 3.60 1.140
Overall mean and standard deviation for functionality 3.82 0.733
PUS1 169 (34.8%) 204 (42%) 49 (10.1%) 52 (10.7%) 12 (2.5%) 3.96 1.048
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PUS2 160 (33%) 184 (37.9%) 66 (13.6%) 65 (13.4%) 11 (2.3%) 3.86 1.089
PUS3 139 (28.7%) 210 (43.3%) 61 (12.6%) 52 (10.7%) 24 (5%) 3.80 1.116
PUS4 159 (32.8%) 190 (39.1%) 55 (11.4%) 61 (12.6%) 21 (4.4%) 3.83 1.143
PUS5 143 (29.5%) 205 (42.2%) 65 (13.4%) 50 (10.3%) 23 (4.8%) 3.81 1.110
Overall mean and standard deviation for perceived usefulness 3.85 0.727
SAT1 119 (24.5%) 192 (39.6%) 67 (13.8%) 67 (13.8%) 41 (8.5%) 3.58 1.232
SAT3 116 (23.9%) 218 (44.9%) 56 (11.6%) 66 (13.6%) 30 (6.2%) 3.67 1.159
SAT4 113 (23.3%) 195 (40.2%) 81 (16.7%) 77 (15.9%) 20 (4.2%) 3.63 1.125
SAT5 96 (19.8%) 209 (43.1%) 86 (17.7%) 68 (14%) 27 (5.6%) 3.57 1.120
Overall mean and standard deviation for users' satisfaction 3.61 0.897
RIN1 127 (26.2%) 152 (31.3%) 105 (21.7%) 58 (12%) 44 (9.1%) 3.53 1.248
RIN2 143 (29.5%) 151 (31.1%) 96 (19.8%) 53 (11%) 43 (8.9%) 3.61 1.256
RIN3 121 (24.9%) 162 (33.4%) 112 (23.1%) 54 (11.2%) 37 (7.7%) 3.57 1.194
RIN4 109 (22.5%) 143 (29.5%) 125 (25.8%) 64 (13.2%) 45 (9.3%) 3.43 1.231
RIN5 124 (25.6%) 145 (29.9%) 99 (20.4%) 66 (13.6%) 52 (10.7%) 3.46 1.294
Overall mean and standard deviation for repurchase intention 3.52 1.018
Table A2.
Frequency
Note: CON, FUN, PUS, SAT and RIN connote convenience, functionality, perceived usefulness, users’ distribution for
satisfaction and repurchase intention respectively research items
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