Managing Service Quality

Emerald Article: Perceived e-service quality (PeSQ): Measurement validation and effects on consumer satisfaction and web site loyalty Eduard Cristobal, Carlos Flavin, Miguel Guinalu

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To cite this document: Eduard Cristobal, Carlos Flavin, Miguel Guinalu, (2007),"Perceived e-service quality (PeSQ): Measurement validation and effects on consumer satisfaction and web site loyalty", Managing Service Quality, Vol. 17 Iss: 3 pp. 317 - 340 Permanent link to this document: http://dx.doi.org/10.1108/09604520710744326 Downloaded on: 16-07-2012 References: This document contains references to 92 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 7651 times since 2007. *

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Rujirutana Mandhachitara, Yaowalak Poolthong, (2011),"A model of customer loyalty and corporate social responsibility", Journal of Services Marketing, Vol. 25 Iss: 2 pp. 122 - 133 http://dx.doi.org/10.1108/08876041111119840 Harold W. Webb, Linda A. Webb, (2004),"SiteQual: an integrated measure of Web site quality", Journal of Enterprise Information Management, Vol. 17 Iss: 6 pp. 430 - 440 http://dx.doi.org/10.1108/17410390410566724 Carmel Herington, Scott Weaven, (2007),"Can banks improve customer relationships with high quality online services?", Managing Service Quality, Vol. 17 Iss: 4 pp. 404 - 427 http://dx.doi.org/10.1108/09604520710760544

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Perceived e-service quality (PeSQ)

Measurement validation and effects on consumer satisfaction and web site loyalty
Eduard Cristobal
Department of Business Administration and Economic Management of Natural Resources, University of Lleida, Lleida, Spain, and

Perceived e-service quality (PeSQ) 317

Carlos Flavian and Miguel Guinalu

Faculty of Economics and Business Studies, University of Zaragoza, Zaragoza, Spain
Abstract
Purpose The objectives of this article are to develop a multiple-item scale for measuring e-service quality and to study the inuence of perceived quality on consumer satisfaction levels and the level of web site loyalty. Design/methodology/approach First, there is an explanation of the main attributes of the concepts examined, with special attention being paid to the multi-dimensional nature of the variables and the relationships between them. This is followed by an examination of the validation processes of the measuring instruments. Findings The validation process of scales suggested that perceived quality is a multidimensional construct: web design, customer service, assurance and order management; that perceived quality inuences on satisfaction; and that satisfaction inuences on consumer loyalty. Moreover, no differences in these conclusions were observed if the total sample is divided between buyers and information searchers. Practical implications First, the need to develop user-friendly web sites which ease consumer purchasing and searching, thus creating a suitable framework for the generation of higher satisfaction and loyalty levels. Second, the web site manager should enhance service loyalty, customer sensitivity, personalised service and a quick response to complaints. Third, the web site should uphold sufcient security levels in communications and meet data protection requirements regarding the privacy. Lastly, the need for correct product delivery and product manipulation or service is recommended. Originality/value Most relevant studies about perceived quality in the internet have focused on web design aspects. Moreover, the existing literature regarding internet consumer behaviour has not fully analysed prots generated by higher perceived quality in terms of user satisfaction and loyalty. Keywords Internet, Electronic commerce, Customer satisfaction, Consumer behaviour, User studies Paper type Research paper

Introduction Internet consumer loyalty is difcult and costly (van Riel et al., 2001), and requires a quality service that satises the consumer. Numerous studies show that higher perceived web site quality and customer service lead to higher protability levels (e.g.
The authors are grateful for the nancial support of the Aragon Government (S-46), the Ministry of Science and Technology (SEC2005-4972; PM34); and FUNDEAR.

Managing Service Quality Vol. 17 No. 3, 2007 pp. 317-340 q Emerald Group Publishing Limited 0960-4529 DOI 10.1108/09604520710744326

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Hoffman et al., 1995; Lohse and Spiller, 1998, 1999; Vanitha et al., 1999; Tilson et al., 1998; Yang Xia et al., 2003). However, despite the importance of perceived quality on the internet, most relevant studies have focussed on web design aspects (e.g. Li Hairong et al., 1999; Mandel and Johnson, 1999; Menon and Khan, 1997). In general terms, we can say that the concept of web site design considers the following factors: . The ease of understanding the structure of a system, its functions, interface and the contents that can be observed by the user. . Simplicity of use of the web site in its initial stages. . The speed with which the users can nd what they are looking for. . The perceived ease of site navigation in terms of time required and action necessary in order to obtain the desired results. . The ability of the user to control what they are doing, and where they are, at any given moment. With the development of internet commerce the physical business unit has been replaced by a web site. Based on these studies, it seems reasonable to assume that in the new electronic environment, perceived web site usability is a very important part of the stores image and can inuence shopping behaviour. In fact, with the passing of time web site design has come to be seen as a key factor when the services that an organisation provides for its consumers use the Internet as a channel of communication. Indeed, Kim and Eom (2002) have concluded that web site designs of critical importance in achieving the global satisfaction of the user. According to previous studies it is necessary to improve the literature by studying which aspects of web site service beyond and web site design and usability determine the consumers perceived quality. Moreover, the existing literature regarding internet consumer behaviour has not fully analysed prots generated by higher perceived quality in terms of user satisfaction and loyalty. In our opinion previous literature are not sufcient because there is not a global perspective in the study of perceived web site quality components and their effects. So we wish to develop a more global model which can explain both aspects: components of quality and consequences. Consequently, the results derived from higher levels of perceived quality should be studied in depth. Considering the limitations observed in previous work, this study will analyse the construct of perceived quality in internet service distribution. The objectives of this article can be divided as follows: . to develop a multiple-item scale for measuring e-service quality which includes additional aspects to web site design; and . to study the inuence of perceived quality on consumer satisfaction levels and the level of web site loyalty. First, in order to meet the above objectives, a review of the most relevant literature regarding the concepts analysed is developed. Second, the hypotheses are described. Third, the hypotheses are empirically veried. Lastly, the studys main conclusions and management recommendations are discussed.

Measurement of e-service quality With the ever-increasing use of e-commerce the need to appraise service has moved to the virtual world. To this end, different studies have been carried out, the majority of which being aimed at developing measurement scales adapted to this new medium (see Table I). With the purpose of simplifying the review of the literature, the different studies of online service quality have been split into two categories according to their focus: online retailing services and web site design quality. These studies reect various aspects of online service quality thus enabling the development of a structured outline in our research. Online retailing services In keeping with earlier research on service quality in conventional distribution channels, Zeithaml et al. (2000, 2001, 2002) and Parasuraman et al. (2005) carried out a study on internet service quality, from which they developed the e-SQ scale. This scale is dened as the degree to which a web site facilitates effective and efcient purchasing. At the onset, the e-SQ scale comprised 11 dimensions (Zeithaml et al., 2001). However, later studies lowered this gure to seven (Parasuraman et al., 2005). Gefen (2002) maintains that service quality dimensions may be divided into three categories: tangibles; a combined dimension of responsiveness, reliability and assurance; and empathy. In keeping with this is the .comQ scale by Wolnbarger and Gilly (2002). This scale is made up of 14 items divided into four factors: web site design; reliability; privacy/security; customer service. Cox and Dale (2001) show which traditional dimensions of service quality (e.g. competence, courtesy, clarity, comfort and friendliness) were not relevant to online sales. However, other factors (e.g. accessibility, communication, credibility and appearance) were very important to being successful in an online environment. Lastly, Madu and Madu (2002) identify 15 dimensions: performance; features; structure; aesthetics; reliability; storage capacity; serviceability; security and system integrity; trust; responsiveness; product/service differentiation and customization; web store policies; reputation; assurance; and empathy. Web site design quality Yoo and Donthu (2001) have developed the SITEQUAL scale to measure the perceived quality of an online shop. This led to a nine-item scale of four dimensions: ease of use, aesthetic design, processing speed and security. For their part, Barnes and Vidgen (2002) developed the WebQual 4.0. scale, made up of 22 items divided into ve dimensions: usability, design, information, trust, and empathy. Liu and Arnett (2000) highlight the presence of four factors: information and service quality, system use, playfulness, and system design quality. And lastly, Loiacono et al. (2002) created the WebQualTM scale, composed of 36 items and 12 dimensions: informational t to task; interactivity; trust; response time; design appeal; intuitiveness; visual appeal; innovativeness; ow (emotional appeal); integrated communication; business process; substitutability. Despite efforts made to measure the quality construct perceived in internet service distribution, it is considered that research in this area is still at an early phase (van Riel et al., 2001). In fact, we may observe some deciencies in early work. First of all, many of the studies are found to focus on technical aspects (such as fonts, colours, number of clicks etc.), thus it would seem reasonable to study additional aspects in depth, such as those that allow us to explain the relationships between online service quality and satisfaction or the intention to purchase again.

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Author Web site design quality Liu and Arnett (2000)

Dimensions

Web site analyzed Webmasters for Fortune 1,000 companies

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1. Quality of Information 2. Service 3. Security 4. Playfulness perceived by consumers 5. Design of the web site Loiacono et al. (2000) 1. Informational t to task TM WEBQUAL 2. Interactivity 3. Trust 4. Response time 5. Design appeal 6. Intuitiveness 7. Visual appeal 8. Innovativeness 9. Flow (emotional appeal) 10. Integrated communication 11. Business process 12. Substitutability van Riel et al. (2001) 1. Core service 2. Supporting services 3. User interface Yoo and Donthu (2001) 1. Ease of use SITEQUAL 2. Aesthetic design 3. Processing speed 4. Security Barnes and Vidgen (2002) 1. Web site usability WEBQUAL 4.0 2. Information quality 3. Service interaction Yang et al. (2004) 1. Usability 2. Usefulness 3. Adequacy of information 4. Accessibility 5. Interaction Online retailing services Wolnbarger and Gilly (2001, 2002, 2003 ECOMQ/ETAILQ Madu and Madu (2002) 1. Web site design 2. Reliability 3. Privacy/security 4. Customer service 1. Performance 2. Features 3. Structure 4. Aesthetics 5. Reliability 6. Storage Capacity 7. Serviceability 8. Security and system integrity 9. Trust 10. Responsiveness 11. Product/service differentiation and customization 12. Web store policies 13. Reputation 14. Assurance 15. Empathy

Web sites selling books, music, airline tickets and hotel reservations

Medical information portal web Online shopping sites

Internet bookstores Web portals

Online shopping sites

Online shopping sites

Table I. Review of the main studies on perceived quality on the internet

(continued)

Author Zeithaml et al. (2001) E-SERVQUAL

Dimensions

Web site analyzed

1. Reliability Online shopping sites 2. Responsibility 3. Access 4. Flexibility 5. Ease of navigation 6. Efciency 7. Assurance/rrust 8. Security 9. Price knowledge 10. Site aesthetics 11. Customization/personalization Cox and Dale (2001) 1. Accesibility Online shopping sites 2. Communication 3. Credibility 4. Understanding 5. Appearance 6. Availability Parasuraman et al. (2005) Seven dimensions that form a core and a Online shopping sites E-S-QUAL/E-RecS-QUAL recover service scale Core e-SQ 1. Efciency 2. System availability 3. Fulllment 4. Privacy Recovery e-SQ 1. Responsiveness 2. Compensation 3. Contact

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Table I.

Second, many empirical studies use online surveys, which restrict the results in different ways (e.g. internet-user inuenced sample, voluntary questionnaires, etc.). In fact, online service quality studies using personal interviews are few and far between (Yang and Fang, 2004). Moreover, the use of personal interviews is usually subordinated by the presence of a limited number of participants, which prevents the identication of sufciently explanatory dimensions (van Riel et al., 2001). These constraints lead us to propose a research project to answer the following questions: Q1. What dimensions of online services are of vital importance to consumer service quality assessment? Q2. What kind of inuence does perceived quality have on consumer satisfaction levels and the degree of web site loyalty? Proposed dimensions for the measurement of perceived quality in the distribution of services on the internet Taking into account the limitations observed in earlier studies, this work develops a new instrument for measuring perceived quality in the distribution of internet services. Let us start by looking at measurement instruments designed in previous work, and in particular the SERVQUAL scale, as this has been successfully applied to numerous sectors, both in physical and virtual environments. In fact, various online service quality studies are based on the SERVQUAL scale (e.g. Barnes and Vidgen, 2002;

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Loiacono et al., 2000, Wolnbarger and Gilly, 2003; Parasuraman et al., 2005), which allows a comparison of results. The proposed scale, called Perceived e-Service Quality (PeSQ) is composed of four dimensions. Web design This dimension is related to the design of the web site (e.g. contents layout, contents updating and user-friendliness), and coincides with the proposals of previous studies (e.g. Loiacono et al., 2000; Barnes and Vidgen, 2002; Aladwania and Palvia, 2002; Yang and Fang, 2004; Yang et al., 2004). Wolnbarger and Gilly (2001) state that the availability of information is one of the most important aspects of online purchasing. In terms of online purchasing versus ofine purchasing, online purchasers perceive a benet in the fact that they receive information directly from the web site without having to seek out a salesperson (Zeithaml et al., 2002). Another benet perceived by internet users is the reduction in search costs, especially in information-related products (Alba et al. 1997; Bakos, 1997). A large amount of freely available information if it is well organised and easily accessed is frequently mentioned by consumers as an important reason to purchase on the internet (Vanitha et al., 1999; Li Hairong et al., 1999; Wolnbarger and Gilly, 2001). Thus, in the design of an online shop, offering enough information to compare products and make a good choice is very important. Customer service At the onset of e-commerce it was thought that success was guaranteed merely by being present on the internet and offering low prices. These days, however, customer service has proved itself to be a key element for achieving good results in an online shop (Zeithaml et al., 2002). Consumers expect to be able to complete transactions correctly, to receive personalised attention, to have the product delivered on time, to have their emails answered quickly and to have access to information. Web site management should ensure these expectations are met in the best way possible. The majority of the scales previously developed consider attributes related to customer service (e.g. Liu and Arnett, 2000; van Riel et al. 2001; Madu and Madu, 2002; Wolnbarger and Gilly, 2003). This dimension is related to service reliability, customer sensitivity, a personalised service and a fast response to complaints. The original conceptualisation of service quality by Parasuraman et al. (1985) included the following dimensions of customer service: sensitivity, courtesy and customer knowledge. The subsequent SERVQUAL scale (Parasuraman et al. 1988) included sensitivity (willingness to help customers) and empathy dimensions (individual attention). Courtesy was relocated into the trust dimension of SERVQUAL. The other elements of this trust dimension were more closely linked to privacy and security, which has been shown to be a different dimension in the virtual context. Assurance The assurance attribute is the term given in the services world to describe the sensation that a supplier of customer services transmits in terms of security and credibility (Parasuraman et al., 1998). In an online environment, security is probably better dened when it is contemplated alongside the notion of privacy (Wolnbarger and Gilly, 2002).

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On the whole, it is considered that the lack of condence motivated by the absence of security and privacy in the online environment is one of the main obstacles to e-commerce development. Therefore, this dimension is understood to be essential when assessing online service quality and this is demonstrated by the fact that it is present in much of the work on online service quality (e.g. Liu and Arnett, 2000; Yang et al., 2001; Zeithaml et al. 2001; Yoo and Donthu, 2001; Wolnbarger and Gilly, 2003; Long and McMellon, 2004, amongst others). This dimension includes incorporating security elements and communicating them to customers, guaranteeing condentiality, conrming the purchase, etc. In short, conveying a secure and reliable image. Order management This dimension relates to the possibility of modifying and/or postponing the purchasing process at any given moment and with no obligation, and of obtaining information on product availability at the moment of purchase. Order management effectiveness holds considerable weight in the assessment of a commercial service, whether conventional or online. Many studies reect just this (e.g. Loiacono et al., 2000; Yoo and Donthu, 2001; Zeithaml et al., 2002; Wolnbarger and Gilly, 2002; Kim and Stoel, 2004; Long and McMellon, 2004). In an ofine context, reliability is dened as the ability to perform the promised service dependably and accurately (Parasuraman et al., 1988, p. 23). In the online world this concerns the delivery of the product in good condition, on time, and exactly as it was displayed on the web site. Lest we forget, the more technical aspects of the correct functioning of web applications (Zeithaml et al., 2002) are important when ensuring optimum order management. Hypotheses formulation Inuence of service quality on satisfaction Anderson et al. (1994) have shown that service quality has a positive effect on satisfaction and subsequently on company protability. According to the researchers the economic results of increasing consumer satisfaction are demonstrated in the long term and have a direct effect on purchasing intentions. Iacobucci et al. (1994) reached the same conclusions, stating that service quality and consumer satisfaction are important in marketing terms because the assessment of a purchase determines the probability of a follow-up purchase and ultimately, company success. Rust and Zahorik (1993) postulate that the improvement of service quality leads to an increase in perceived quality and that this, in turn, increases consumer satisfaction. Parasuraman et al. (1985) indicate that quality contributes to a larger market share and to the recovery of investment, as well as a drop in manufacturing costs and a rise in productivity. Moreover, Cronin and Taylor (1992) studied the relationship between perceived service quality, consumer satisfaction and purchasing intentions, arriving at the conclusion that service quality determines consumer satisfaction, that consumer satisfaction has a signicant effect on purchasing intentions, and that service quality has less effect on purchasing intentions than consumer satisfaction. Turning our attention to contextualised studies on relationships established on the internet, it should be pointed out that aspects such as information quality or user-friendliness have positive repercussions on the level of consumer web site

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satisfaction (Zeithaml et al., 2002). Wolnbarger and Gilly (2002) indicate that effectiveness in order management is the most important determining factor of consumer satisfaction. Finally, in a project carried out by Yang and Fang (2004) in which the possible link between the dimensions of online service quality and satisfaction were studied, the most frequently cited service quality dimensions leading to satisfaction were: responsiveness, competence, user-friendliness, service reliability, courtesy, service portfolio, and continuous improvement. It is clear that the authors highlight dimensions related to customer attention, amongst others, as a source of satisfaction. Moreover, it has been considered one of the most important drivers of e-service satisfaction (Petersen, 2001; Urban et al., 2000; Wingeld and Rose, 2001). In keeping with the above arguments, it is reasonable to think of a close relationship in place between perceived quality and consumer satisfaction, which brings us to propose the following work hypothesis: H1. Higher levels of perceived quality in web site services foster higher levels of user web site satisfaction. The inuence of service quality and satisfaction on web site loyalty Service quality perception is positively related to purchasing intention (Boulding et al., 1993). In fact, quality has positive consequences for purchasing intentions, on-word-of-mouth recommendations and on the willingness to pay a higher price for the service. The existence of a relationship between service quality and the retention of customers at a higher level indicates that service quality has an impact on individual consumer behaviour (Zeithaml et al., 1996). Substantial research has emphasised the need to discover how to improve loyalty levels and consumer intentions to purchase on the internet (Abbott et al., 2000; Vanitha et al., 1999). Indeed, Wolnbarger and Gilly (2002) say perceived quality is the second most important predictor of loyalty and intention to repeat a purchase. For Taylor Nelson Sofres Interactive (2002), there are two main reasons why consumers do not purchase online: rst, they do not want to give out credit card information for security reasons; second, they consider it safer to buy in conventional shops than in online shops. According to the CIB (2003) spam is, after transport costs, the second most important drawback to online purchasing. Likewise, aspects such as how user-friendly the web site is have been put forward as determinants of web site loyalty levels (Flavian et al., 2006). Gummerus et al. (2004), in a study applied in healthcare web sites, stated that loyalty to the health web site is satisfaction-driven, but that trust is the main antecedent of satisfaction. In other work focused in examining the antecedents of consumer loyalty toward internet portals, Jyh and Chung (2006) demonstrated that consumers specic asset investment on an internet portal exerted a positive impact on loyalty intention, whereas perceived opportunism toward an internet portal exerted a negative inuence on loyalty intention. Ball et al. (2006) carried out an investigation in the banking industry where they studied the effect of service personalization on loyalty. They said that the effect of service personalization on loyalty exists, but that the effect is not direct at all. Personalization works by improving service satisfaction and trust. Parasuraman et al. (2005) indicate that fullment (related to order management) is one of the most inuential factors, not just in perceived quality assessment, but also in loyalty intentions. In the same direction Semeijn et al. (2005) carried out a study that concludes that ofine fullment appears to be at least as

important as web site performance. On other hand, Ribbink et al. (2004), conducted a study where e-trust was found to affect directly loyalty. In this paper, the e-service quality dimension inuences loyalty via e-trust and e-satisfaction. Other e-quality dimensions, such as ease of use, e-scape, responsiveness, and customization inuence e-loyalty mainly indirectly, via satisfaction. Anderson and Srinivasan (2003), indicated in their investigation, that although e-satisfaction has an impact on e-loyalty, this relationship is moderated by consumers individual level factors and rms business level factors. Among consumer level factors, convenience motivation and purchase size were found to accentuate the impact of e-satisfaction on e-loyalty, whereas inertia suppresses the impact of e-satisfaction on e-loyalty. Regarding business level factors, both trust and perceived value, developed by the company, signicantly accentuates the impact of e-satisfaction on e-loyalty. Lastly, it should be noted that Tam (2003) proposes a model that explains online consumer loyalty where factors such as web design, security and privacy and customer service have a huge inuence on loyalty. As a result of the above arguments the following work hypothesis may be proposed: H2. Higher levels of perceived quality in web site services foster higher levels of web site loyalty. The securing of higher levels of consumer satisfaction leads to an improvement in both purchasing intentions and loyalty levels (Anderson and Sullivan, 1990; Yoon and Kim, 2000). The individual who perceives that the business complies with the agreed conditions, believes that this behaviour will continue in the future, which is why their willingness to continue the relationship is strengthened, in turn increasing the number of exchanges and the degree of commitment. At the same time, the attraction of other alternatives on the market, within the same product category, is weakened, which is why the businesss capacity to satisfy customer needs prevents both the customers withdrawal and the arrival of new competitors. Thus, satisfaction becomes a differentiating mechanism for what the company has to offer. In keeping with the aforementioned arguments, we can say that the fullment of a users web site expectations leads to the increase in the users future purchasing intentions and will increase their visit frequency, just as other authors have suggested (e.g. Shankar et al., 2003). Consequently, it is possible to make the following work hypothesis: H3. Higher web site service satisfaction levels foster web site loyalty levels. Validation analysis One of the main objectives of this study is the attainment of an instrument to measure customers perceived service quality regarding services provided by online shops. In order to do that, we followed an adaptation of the most recurrent methodologies in social sciences (e.g. Churchill, 1979; Ping, 2004). Phase 1. Dominion specication. The dominion specication was realized from a literature review. At rst the subject was specied according to the review of the existing literature. Thus, the service quality perceived by a consumer will be dened as the valuation that the consumer makes of the excellence or superiority of the service (Zeithaml, 1988). We are dealing with a form of attitude, related to, yet not equivalent to, satisfaction (Parasuraman et al., 1988).

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Phase 2. Dimensional identication. The previous literature review allowed identifying as start point a set of items grouped around three dimensions: technical quality, functional quality and image (Gronroos, 1988). These three dimensions included every attributes which can affect the perception of quality in the consumer. Phase 3. Content and face validity. The initial generation of items was based on the review of the literature on quality and e-commerce; and on the completion of an earlier explanatory study by means of in-depth interviews with people linked to service quality and e-commerce. This review guaranteed the content validity of the scale (see Appendix), that is, the degree to which a scale represents a correct sample of the theoretical content domain of a construct (Nunnally and Bernstein, 1994). The result of this process was an extensive list of 86 items in the seven-point Likert scale. Nonetheless, given the extent of the initial scale it was necessary to reduce it. This reduction had the objective of guaranteeing the face validity of the measurement instrument. Face validity is habitually confused with content validity, and is dened as the degree that respondents judge that the items are appropriate to the targeted construct (Anastasi, 1988). Face validity was tested through a Delphi process. Based on the responses received by the panel of experts, items with a lesser degree of consensus were eliminated and the application of the suggestions received was initiated. With this reduction using the Delphi method, the measurement scale was formed by 31 items, with a sufcient degree of face and content validity. Phase 4. Pre-test. Once the initial set of items was obtained, a pilot study was carried out on a sample of 54 individuals, divided into two subgroups, with the objective of purging the scale and checking the results on the target population (degree of difculty, scope of the questionnaire, writing up of remarks, valuation of the response, etc.) and nally to determine the most appropriate type of formulation. This pre-test led to a nal total of 25 items. Phase 5. Data collection (see Table II). Satisfaction and loyalty were measured by a single item, similarly to others authors (e.g. Bahr, 1982; Parasuraman et al., 1988). Their content and face validity was analyzed through the same procedures of perceived service quality scale. However, these two scales were not submitted to process below because they coincided with previous studies. The satisfaction scale has its origin in Oliver and Bearden (1983) or Oliver and Linda (1981). Satisfaction was measured in an interval of 7 points (1 very unsatised-7 very satised). Loyalty scale was developed from Parasuraman et al. (2005). Loyalty was measured in an interval of 7 points (1 less frequent; 4 equally; 7 more frequent). In studies on the valuation of perceived quality in services, the criteria used in the works of Parasuraman et al. (1988) which resulted in the creation of the SERVQUAL scale

Population Sample Table II. Data collection Process Place and date Survey administration

Internet users, who had visited, bought or used the services offered by an internet service, at least one time during previous three months. 461 cases (error ^ 4.66% to a condence level of 95.5% (k 2 and P Q 50%) Simple random sampling Barcelona (Spain); June, 2001 Personal interview; semi-structured questionnaire

are followed on the whole. In the SERVQUAL scale the concept of recent user refers to having used the services in each one of the sectors in the last three months. Consequently, in our research project, for an individual to be considered an online shopper and, therefore, the object of our study, they should have visited, bought or used the services of an online shop at least once in the three months directly prior to the survey. Unlike the SERVQUAL scale, only perceptions were assessed. This decision was based on the following arguments: . The SERVQUAL instrument is based on a disconrmatory paradigm instead of an attitudinal paradigm. Cronin and Taylor (1992, p. 55) state that the conceptualisation of service quality as an attitude and the operativisation by means of the disconrmatory paradigm of service quality is inadequate, due to the fact that the use of the disconrmatory paradigm is adequate for the measurement of satisfaction (Oliver, 1980), but not for the measurement of perceived quality, given that if it is conceptualised as an attitude, it should operativise itself as such. . Buttle (1996) made two criticisms of the denition of service quality as the difference between expectations and perceptions. The rst is that the expectations of a customer may be low as a consequence of previous contact with the service. If these expectations, reduced by experience, are covered there will not be a gap and the service quality will be satisfactory although the perception is low (poor service paradox). This is a situation that can easily occur in an online environment. Expectations may also be low due to lack of knowledge of the online environment and therefore to not having previous experience in interaction with online shops. The second is that the damaging effect of the negative conrmation (perceptions lower than expectations) is greater than the benets provided by the positive conrmation (perceptions equal to or higher than expectations) given that for the customers it is easier to criticise poor service than to praise excellent service. Initial reliability analysis In order to assess the perceived service quality scale we rst developed an initial exploratory analysis of reliability and dimensionality (Churchill, 1979; Anderson and Gerbing, 1988). We valued the 25 items which compose the scale according to the Cronbachs alpha indicator, considering a minimum value of 0.7 (Nunnally, 1978). The item-total correlation was used to improve the levels of Cronbachs alpha, considering a minimum value of 0.3 (Nurosis, 1994). After these processes ve items had to be eliminated. Finally, the scale was composed by 18 items, with levels of item-total correlations higher than 0.3 and a Cronbachs alpha of 0.884. Dimensionality analysis The dimensionality of the scale was rst assessed through principal components analysis (Hair et al., 1998). The criterion followed for the extraction of the factors was to have an auto-value higher than 1. Moreover it was demanded that factorial loadings were higher than 0.7 points and a signicative total explained variance. The rst PCA supposed the extraction of four factors and a high variance. However one of the factor loadings was lower than 0.7. Consequently a new PCA was generated. The second factorial analysis extracted four factors too. All factor loadings were higher than 0.7.

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The model explained the 53.532 percent of the variance. The Appendix shows the items which compose each of the factors extracted. These items conformed representative factors of the four dimensions initially proposed by the Perceived e-Service Quality scale (PeSQ): web design, customer service, assurance and order management. A conrmatory model development strategy (Hair et al., 1998) was followed to conrm the dimensional structure of the perceived service quality scale, as well as the level of internal consistency (Ping, 2004). This strategy supposes the consideration of the criteria set proposed by Joreskog and Sorbom (1993): . the weak convergence criterion (Steenkamp and Van Trijp, 1991) means eliminating indicators that do not show signicant factor regression coefcients (t student . 2:58; p 0:01); . the strong convergence criterion (Steenkamp and Van Trijp, 1991) involves eliminating non-substantial indicators, that is to say, those whose standardized coefcients are lower than 0.5 (Hildebrant, 1987); . Joreskog and Sorbom (1993) also suggest eliminating the indicators that contribute least to the explanation of the model, taking as a cut-off point R2 , 0.3; and . eliminate items with a lower R2 value, when the model t is not acceptable. In order to achieve sufcient levels of convergence and R2 two items were eliminated. The model t was correct (CFI 0:907; RCFI 0:931; GFI 0:920; RMSEA 0:066; normed Chi-Squared 2.996). In order to conrm the existence of multidimensionality in the PeSQ scale, a rival models strategy was developed (Hair et al., 1998; Anderson and Gerbing, 1988). It compared a second order model in which various dimensions measured the multidimensional construct under consideration, with a rst order model in which all the items weighed on a single factor (Steenkamp and Van Trijp, 1991). The results showed that the second order model had a much better t than the rst order model (see Table III). These results led us to conclude that the perceived service quality showed a marked multidimensional nature. Composite reliability Although the Cronbachs alpha indicator is the most frequent test to assess reliability, it may underestimate reliability. Consequently, it has been suggested the use of the composite reliability (Joreskog, 1971), considering a cut-off value of 0.60 (Nunnaly and Bernstein, 1994). The results were satisfactory: web design (0.71); customer service (0.73), assurance (0.72) and order management (0.70).
First order model RMSEA GFI CFI RCFI Normed Chi-squared 0.092 0.856 0.809 0.850 4.914 Second order model 0.066 0.918 0.906 0.930 2.984

Table III. Analysis of multidimensionality

Construct validity Construct validity was assessed considering two types of criteria: convergent and discriminatory validity. Convergent validity. It was tested by checking that the factor loadings of the conrmatory model were statistically signicant (level of 0.01) and higher than 0.5 points (Sanzo et al., 2003). Discriminatory validity. The discriminatory validity was conrmed through three distinct criteria. First, the correlation between the different variables in the conrmatory models was tested to make sure that they did not exceed 0.8 points as this would indicate a low discrimination between them (Bagozzi, 1994). Second, we checked that the value 1 did not show that it was in the condence interval of the correlations between the different variables of the conrmatory model. Finally, the correlation between each pair of conrmatory model variables was xed at 1 and a chi-squared difference test was carried out. The results showed an acceptable level of discrimination (see Table IV). Structural model analysis In order to test the structural model, each of the dimensions corresponding to perceived service quality was replaced by its arithmetical mean (method of parceling). It is a common practice among researchers (e.g. Roberts et al., 2003), which can only be done if the correct t of a second order factorial model has been checked (see Table I). Satisfaction and loyalty was measured by a single item. In order to included a single item in the structural model we xed its error variance to 0.20 times the variance of the item, so that we assumed that its reliability was 0.80 (Iglesias and Vazquez, 2001). The results of the structural model showed that the direct effect of perceived service quality (the SERVQUAL variable in Figure 1) on satisfaction was signicant (level of 0.01) and positive, and so H1 was accepted. Second, perceived service quality had not a signicative effect on loyalty, and so H2 was rejected. Finally H3 was accepted due to signicative and positive effect of satisfaction on loyalty (level of 0.1). This result showed us the mediating role played by satisfaction in the relationship between perceived service quality and loyalty. Finally, mention should be made of the notable t obtained in the structural model (CFI 0:989; RCFI 0:993; GFI 0:988; RMSEA 0:047; normed chi-squared 2.029). Multisample analysis In order to assess the generalization capacity of the obtained results a multisample analysis was performed. This type of analysis allows us to contrast the possible differences
Correlations CS-WD CS-SP CS-OM WD-SP WD-OM SP-OM 0.65 * 0.75 * 0.64 * 0.74 * 0.78 * 0.73 * Condence interval (0.55; (0.66; (0.48; (0.66; (0.65; (0.57; 0.74) 0.84) 0.79) 0.82) 0.92) 0.88) Chi-squared differences 403.922 420.473 282.747 470.032 255.567 261.820 (gl 1; (gl 1; (gl 1; (gl 1; (gl 1; (gl 1; p , 0.01) p , 0.01) p , 0.01) p , 0.01) p , 0.01) p , 0.01)

Perceived e-service quality (PeSQ) 329

Note: * coefcients signicant to a level of 0.01

Table IV. Discriminatory validity

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Figure 1. Structural model: standardized solution

between two or more groups. We divide the total sample into two groups according a variable which measured if consumer had bought on the web site (buyers group), or only had obtained information about the distributed services (information searchers group). First, multisample analysis generates an individual structural solution for each group. Table V shows the data. For the buyers group, data shows that hypotheses H1 (level of 0.01) and H3 (level of 0.1) must be accepted. Similar results are observed for the information searchers group, due to hypotheses H1 (level of 0.01) and H3 (level of 0.01) are accepted. Fit indicators are acceptable (CFI 0:983; GFI 0:980; RMSEA 0:041; Normed Chi-Squared 1.753). Second, multisample analysis offers information about the signicance of the differences between the coefcients of the two models. To assess these differences we use the LMTest. This contrast analyzes the variation of the Chi-squared when the constraint of equalizing one of the coefcients is eliminated. Thus LMTest assesses if the elimination of this constraint supposes a signicative change in the Chi-squared, and as a consequence a signicative improvement in the model t. Table VI suggests that there are not signicative differences between the models to a level of 0.05.
Buyers (n 267) Standardized coefcient t-value 0.694 2 0.198 0.597 8.722 2 0.860 1.906 Information searchers (n 194) Standardized coefcient t-value 0.345 0.035 0.335 3.995 0.375 4.442

Causal relationship Table V. Multisample analysis: estimated coefcients and t-values Perceived service quality ! satisfaction (H1) Perceived service quality ! web site loyalty (H2) Satisfaction ! web site loyalty (H3)

Conclusions The growing level of competition that can be observed on the internet requires the analysis of factors that can fully explain which aspects largely determine consumer loyalty. Amongst these explanatory factors, perceived quality of a web site or the degree of satisfaction of the individual with said web site can be especially relevant. An initial and notable result of this research project is the attainment of the PeSQ scale. This scale, supported by an in-depth review of the literature to date and the most advanced mechanisms of empirical validation, comprises four dimensions that characterise the perceived quality construct on the internet (web design, customer service, assurance, order management). Web design is related to the design of the web site (e.g. contents updating and usability levels), and coincides with the proposals of previous studies (e.g. Aladwania and Palvia, 2002; Yang and Fang, 2004; Yang et al., 2004). In fact we suggest that in the design of an online shop, offering enough information to compare products and make a good choice is very important. Customer service has proved itself to be a key element for achieving good results in an online shop (Zeithaml et al., 2002). Consumers expect, for instance, to be able to complete transactions correctly and to receive personalised attention. The assurance attribute is the term given in the services world to describe the sensation that a customer services supplier transmits in terms of security and credibility (Parasuraman et al., 1998). In an online environment, security is probably better dened when it is contemplated alongside the notion of privacy (Wolnbarger and Gilly, 2002). Online privacy affects aspects such as the obtaining, distribution or the non-authorized use of personal information (Wang et al., 1998). New technologys growing capacity for information processing, plus its complexity, have made privacy an increasingly important issue. This is giving rise to marked consumer distrust as to how their personal data is being gathered and processed. The quantitative importance of this issue is shown by Udo (2001), who points out that the protection of privacy is the greatest concern of internet purchasers. On the other hand, the lack of security as perceived by online consumers is another of the main obstacles to the development of e-commerce (Furnell and Karweni, 1999). The reason for this is the possibility that nancial data might be intercepted and put to fraudulent use (Jones et al., 2000). Kolsaker and Payne (2002) maintain that security reects perceptions regarding the reliability of the means of payment used and the mechanisms of data transmission and storage. Thus, what we are talking about here are the technical aspects that ensure the integrity, condentiality, authentication and non-recognition of transactions. The integrity of an information system refers to the impossibility of the transmitted or stored data being modied by third parties without permission. Condentiality involves the data being seen by authorized individuals. Authentication allows a certain operation to be carried out only after identication, or if there are guarantees of the identity of the party one is dealing with (e.g. a web site). Finally, non-repudiation refers to procedures that prevent an
Constraints Perceived service quality ! satisfaction (H1) Perceived service quality ! web site loyalty (H2) Satisfaction ! web site loyalty (H3) d.f. 1 1 1 Chi-squared differences 3.454 0.020 0.506 Likelihood 0.063 0.888 0.477

Perceived e-service quality (PeSQ) 331

Table VI. Multisample analysis. LMTest

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individual or organization from denying that they had carried out a certain operation (e.g. a purchasing order). Order management relates to the possibility of modifying and/or postponing the purchasing process at any given moment and with no obligation, and of obtaining information on product availability at the moment of purchase. Second, this project shows how perceived quality has a direct and profound effect on the degree of consumer web site satisfaction. Likewise, the degree of satisfaction acts positively and directly on the consumer web site loyalty levels shown. Moreover, the mediator function of satisfaction is observed, as it falls between the levels of perceived quality and of loyalty. Lastly, we should point out that the studies carried out do not show marked changes in the proposed model, by differentiating between buyers and information searchers. Managerial suggestions Satisfaction arises as a consequence of the comparison that the consumer makes between their initial expectations of a product or service and the end result. The proposed model in this research project suggests to us that these expectations can be based on the components of the construct service quality, given that this acts on the degree of satisfaction. By analysing the components of service quality we can carry out the following managerial suggestions. First, the web design dimension shows us the need to develop user-friendly web sites which ease consumer purchasing and searching, thus creating a suitable framework for the generation of higher satisfaction and loyalty levels. Second, the customer service dimension suggests that the web site manager should enhance service loyalty, customer sensitivity, personalised service and a quick response to complaints. Third, the web site should uphold sufcient security levels in communications and meet data protection requirements regarding the privacy of the individual (assurance dimension). Lastly, we recommend the need for correct product delivery and product manipulation or service (order management dimension). To conclude, the results of the multi-sample model suggest that the behaviour of purchasers and non-purchasers alike is not so very different, at least when it comes to the relationship between the variables that are the object of study in this research project. Thus, specic strategy setting for each customer type does not seem to be necessary.
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Appendix. Measurement scales used

Dimensions Customer service

Items When they promise to do something within a certain time, they do it

Adapted from

338

Web design

Assurance

Table AI. Perceived service quality scale

Long and McMellon (2004); Parasuraman et al. (1988, 1991); Ribbink et al. (2004); Zeithaml et al. (1988, 1993); Yang and Fang (2004) When a customer has a complaint Long and McMellon (2004); Parasuraman et al. (1988, 1991, 2005); or grievance, it is dealt with Semeijn et al. (2005); Wolnbarger and rapidly and effectively Gilly (2003); Yang and Fang (2004); Zeithaml et al. (1988, 1993) The service is performed properly Parasuraman et al. (1988, 1991); rst time Zeithaml et al. (1988, 1993) Barnes and Vidgen (2002); The company provides its Parasuraman et al. (1988, 1991); customers with a tailor-made Wolnbarger and Gilly (2003); service Zeithaml et al. (1988, 1993) The stated delivery period is Barnes and Vidgen (2002); adhered to, at the time agreed on Parasuraman et al. (1988, 1991, 2005); Wolnbarger and Gilly (2003); Yang and Fang (2004); Zeithaml et al. (1988, 1993) The product and its features are Barnes and Vidgen (2002); Long and correctly presented McMellon (2004); Semeijn et al. (2005); Wolnbarger and Gilly (2003); Yang et al. (2004) The web site information is Yang et al. (2004) regularly updated The pages load quickly Parasuraman et al. (2005); Semeijn et al. (2005); Yang et al. (2004) The contents are easily found in Barnes and Vidgen (2002); Loiacono the web site (ease of navigation) et al. (2000); Long and McMellon (2004); Parasuraman et al. (2005); Ribbink et al. (2004); Semeijn et al. (2005); Yang and Fang (2004); Yang et al. (2004); Yoo and Donthu (2001) Full information on product Barnes and Vidgen (2002); features and services offered Wolnbarger and Gilly (2003); Yang and Fang (2004); Yang et al. (2004) Barnes and Vidgen (2002); Gummerus An image of reliability and et al. (2004); Loiacono et al. (2000); trustworthiness in ones Parasuraman et al. (1988, 1991); transactions is transmitted Zeithaml et al. (1988, 1993) The condentiality of customer Barnes and Vidgen (2002); Gummerus data is ensured et al. (2004); Loiacono et al. (2000); Parasuraman et al. (2005); Semeijn et al. (2005); Yang and Fang (2004) Conrmation, once the purchase Parasuraman et al. (2005); Yang and has been made, that the operation Fang (2004) has been carried out satisfactorily (continued)

Dimensions

Items Clear information on how to make the purchase Elements of security are incorporated and the customer is made aware of these The option to modify and/or defer at any time, without commitment, the purchasing process Contains information on product availability when purchasing Allows for different methods of payment (credit card, COD, etc.) The option of different charges depending on delivery methods and times Contains information on the company (name, type of company, HQ address, country of origin, telephone number, etc.) 24-hour help-line Includes elements of diversion or entertainment (such as games, videos, interactive applications, etc.) Includes the option to communicate with other users with similar interests and preferences Contains clear information on how to make a purchase The applications and elements making up the web site are visually appealing

Adapted from Loiacono et al. (2000) Long and McMellon (2004); Wolnbarger and Gilly (2003) Long and McMellon (2004); Yang and Fang (2004) Parasuraman et al. (2005); Yang et al. (2004) Long and McMellon (2004); Semeijn et al. (2005); Yang et al. (2003) Parasuraman et al. (2005); Semeijn et al. (2005); Yang et al. (2003) Barnes and Vidgen (2002); Loiacono et al. (2000); Semeijn et al. (2005) Parasuraman et al. (2005); Yang and Fang (2004) Kim and Stoel (2004)

Perceived e-service quality (PeSQ) 339

Order management

Items eliminated in validation process

Long and McMellon (2004); Yang et al. (2004); Van Riel at al. (2001) Barnes and Vidgen (2002) Barnes and Vidgen (2002); Loiacono et al. (2000); Long and McMellon (2004); Yang and Fang (2004); Yang et al. (2003); Yoo and Donthu (2001) Anderson and Srinivasan (2003); Gummerus et al. (2004); Jyh and Chung (2006); Oliver and Bearden (1983); Oliver and Linda (1981); Ribbink et al. (2004); Semeijn et al. (2005) Parasuraman et al. (2005); Ribbink et al. (2004); Semeijn et al. (2005) Table AI.

Satisfaction scale How satised were you with this web site?

Loyalty scale Over the next year, my purchases at (or visits to) the online shop that I currently use most will be

MSQ 17,3

340

About the authors Eduard Cristobal holds a PhD in Business Administration and is Associate Professor of Marketing in the Department of Business Administration and Economic Management of Natural Resources at the University of Lleida. His work has been presented in national and international conferences, and has been published in several journals, such as Managing Service Quality. Carlos Flavian holds a PhD in Business Administration and is Professor of Marketing in the Faculty of Economics and Business Studies at the University of Zaragoza (Spain). His research in strategic marketing has been published in several academic journals, such as the European Journal of Marketing, Journal of Consumer Marketing, Journal of Strategic Marketing, Journal of Retailing and Consumer Services, Information & Management, Internet Research and different books. He is in charge of several competitive research projects being developed on the topic of e-marketing. He is a member of the Editorial Board of Industrial Marketing Management, Journal of Retailing and Consumer Services, Journal of Marketing Communications and International Journal of Services and Standards. He is the corresponding author and can be contacted at: cavian@unizar.es Miguel Guinalu holds a PhD in Business Administration and is Assistant Professor in the Faculty of Economics and Business Studies (University of Zaragoza, Spain). Previously, he worked as an e-business consultant. His main research line is online consumer behavior, particularly the analysis of online consumer trust and virtual communities. His work has been presented in national and international conferences, and has been published in several journals, such as Journal of Marketing Communications, Information & Management, Industrial Management & Data Systems, Internet Research, Journal of Retail & Consumer Services, International Journal of Bank Marketing or International Journal of Retail & Distribution Management, and books, such as Advances in Electronic Marketing, Mobile Government: An Emerging Direction in E-Government, Encyclopedia of Networked and Virtual Organizations and Encyclopedia of E-Commerce, E-Government and Mobile Commerce.

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