The explosion of business-to-consumer e-commerce activities has created a need for researchers, marketers, and retailers to understand how and why people participate and then continue participating. E-retailers need to go beyond these assumptions to know what evaluative criteria consumers use when shopping online that would help to attract and retain satisfied online shoppers. This research will evaluate how e-business could be used as an additional channel for businesses to satisfy customers leading to long relationship and loyalty.
The explosion of business-to-consumer e-commerce activities has created a need for researchers, marketers, and retailers to understand how and why people participate and then continue participating. E-retailers need to go beyond these assumptions to know what evaluative criteria consumers use when shopping online that would help to attract and retain satisfied online shoppers. This research will evaluate how e-business could be used as an additional channel for businesses to satisfy customers leading to long relationship and loyalty.
The explosion of business-to-consumer e-commerce activities has created a need for researchers, marketers, and retailers to understand how and why people participate and then continue participating. E-retailers need to go beyond these assumptions to know what evaluative criteria consumers use when shopping online that would help to attract and retain satisfied online shoppers. This research will evaluate how e-business could be used as an additional channel for businesses to satisfy customers leading to long relationship and loyalty.
Influence Continuance Online Shopping The Case of Saudi Arabia Brunel University Paper 65 Abstract The explosion of business-to-consumer e-commerce (B2C) activities has created a need for researchers, marketers, and retailers to understand how and why people participate and then continue participating in e-commerce. Most studies in e-commerce focused on two assumptions. The first assumption is that customers most of the time spend at least a few minutes to find out if the website has the desirable attributes, such as easy of use, usefulness, enjoyable, loyalty incentives,..etc (Li, Zhang, 2005) regardless of liking the website or not. The other assumption is that good website trait usually obtains affirmative cognitive evaluations and shopping experience etc (Li, Zhang, 2005). E-retailers need to go beyond these assumptions to know what evaluative criteria consumers use when shopping online that would help to attract and retain satisfied online shoppers. Past research has provided some insight into what characteristics shoppers assess when shopping online. This research will consider the e-business (e-shopping, e-retailer) as a technology adoption process and evaluates how e-business could be used as additional channel for businesses to satisfy customers leading to long relationship and loyalty (continuity of shopping). Key Word – Online shopping, e‐shopping, continuance usage of internet shopping, loyalty, satisfaction, Saudi Arabia Introduction As the powerhouse of the Arab world, Saudi Arabia has the regional largest economy and although still relatively young, has achieved a rapid rate of growth. Combine this with a young and fast growing population, 60% out of 24,069,943 population (The Middle East Statistics, 2007) under the age of 30 years, 51% male and 49% female, and birth rate of 2-3%, make it clear to see the attraction, for researchers and e-businesses, of future opportunities of how the technology can be accepted, developed, and spread in the country, which are very important for the success of e-commerce within the Kingdom of Saudi Arabia and (Ein-Dor, Segev, &Orgad, 1992; Haley, 2002; Png, Tan & Wee, 2001). In fact, with 60% of the population under the age of 30 and almost split by gender, these individuals are more likely to take the risk of accepting the new technology and any new ideas (Straughn & Alere-Miller, 2001) The explosion of business-to-consumer e-commerce (B2C) activities has created a need for researchers, marketers, and retailers to understand how and why people participate and then continue participating in e-commerce. Most studies in e-commerce focused on two assumptions. The first assumption is that customers most of the time spend at least a few minutes to find out if the website has the desirable attributes, such as easy of use, usefulness, enjoyable, loyalty incentives,..etc (Li, Zhang, 2005) regardless of liking the website or not. The other assumption is that good website trait usually obtains affirmative cognitive evaluations and shopping experience etc (Li, Zhang, 2005). E-retailers need to go beyond these assumptions to know what evaluative criteria consumers use when shopping online that would help to attract and retain satisfied online shoppers. Past research has provided some insight into what characteristics shoppers assess when shopping online. This research will consider the e-business (e-shopping, e-retailer) as a technology adoption process and evaluates how e-business could be used as additional channel for businesses to satisfy customers leading to long relationship and loyalty (continuity of shopping). Research Objective The objective of this research is to offer a novel angel to establish overarching patterns of e-shopping that drive customer continuance intention (e-loyalty) and to enrich our understanding of the factors that influence the intention of continuance online shopping in Saudi Arabia. The Technology Acceptance Model (TAM), which emphasis on consumer online purchasing intention and adoption, the technological attributes of the web site (Davis et al., 1989). Also, the Expectation Confirmation Theory (ECT) which stated that initial adoption by consumers is only the first step toward overall success, and companies that succeed in their e-business initiatives are adept at creating and maintaining a long-term sustainable relationship with customers, consumer trust and satisfaction in the e-business (Bhattacherjee, 2001b). Technology Acceptance Model, TAM has successfully enlightened the intention of eshopping (Davis 1989; Davis et al. 1989). Many empirical tests have shown that TAM is a parsimonious and robust model of technology acceptance behaviors in many IT categories, including e-commerce (Gefen and Straub 2000; Gefen et al. 2000; Lee et al. 2001; Lederer et al. 2000), across both levels of expertise (Taylor and Todd 1995b), and across countries (Rose and Straub 1998; Straub et al. 1997). Expectation Confirmation Theory, ECT, states that customer satisfaction develops from a customer’s evaluation of his expectation of the product or service before purchase and if the expectation has been met after purchase (Kristensen et al. 1999). Many other studies have focused on different issues of e-commerce such as trust (Ba et al. 1999; Beatty et al. 1996; Bhattacherjee 2002; Brynjolfsson et al. 2000; Czepiel 1990; Gefen 2002; Hoffman et al. 1999; Jarvenpaa al. 1998; McKnight et al. 2002b; Ratnasingham 1998a; Urban et al. 2000). That is customers will have to experience a new channel for doing business where they cannot see or touch the product or service as well as having little or no experience with the e- retailers. Research Aims This research will be studied from the information acceptance point of view referring to the scheme that consumers in Saudi Arabia are using online shopping and more understanding on the factors that affect their acceptance are needed to better understand the continuance intention of e-shopping. The research proposes conceptual framework to describe e-commerce continuance intention to e-shopping in Saudi Arabia and it will include easy of use, usefulness, trust, enjoyment, subjective norm, loyalty incentives and how it affects action, satisfaction, and eloyalty in the e-commerce world. The framework will explain the relationship between the factors that would attract the customer to use the web site and their affect on continuance intention to e-shopping. Research Problem There is a dearth of literature, which have tested Technology Acceptance Model (TAM) and Expectation Confirmation Theory (ECT) theories in developing countries. But the argument is that can these theories applied into the developing countries and have the same finding. Results may vary between countries with different cultures. Since most literatures have been tested in western and developed countries, this created weaknesses (gap) lead to the development of the research questions that are what forces drive customer continuance e-shopping intention? And how does e-shopping drive consumer (continuance intention) loyalty? That is in the case of developing countries, Saudi Arabia. Research Methodology The fundamental factor when selecting the right research method to investigate the research problem is the appropriateness of the chosen method to achieve the research objective. The selection process needs to avoid implementing a method that might look ideal and in reality inappropriate for the research. The process itself must be precise. In 1989, Bryman stated ‘Each design and method should be taken on its merits as a means of facilitating (or obscuring) the understanding of particular research problems.’ (Bryman, 1989:255). Research Approach In any academic research, there are mainly two main methodological approaches to the social research discipline; quantitative and qualitative approaches (Denzin and Lincoln, 2000). When comparing quantitative and qualitative research method, both have their advantages and disadvantages. For the purpose of this research, the research author will choose the approach that is believed to be more appropriate to reach the research objectives. In 1988, Bulmer stated that ‘different investigations may have different preferences and lean in one direction or another, but there are no general principles which can be adduced in favour of one or another style of research’ (Bulmer, 1988:160). Triangulation as an Approach In theory, quantitative or qualitative are the most used methodology with single research investigation. To reach a clear understanding of the problem researched, researchers would always select one of the known methodologies such as quantitative or qualitative. The researcher has adapted to the triangulation strategy as being recommended by many authoritative studies to apply multiple and complementary methods (Eid, 2002; Teo and Tan, 2000; Tigre and Dedrick, 2004). Denzin (1978) has defined Triangulation as the combination of methodologies in the study of the same phenomenon. The main notion of using triangulation methods is to over come any limitation from a particular method. That is an limitation or weaknesses will be compensated by the strength of the other method (Brannen, 1992). Therefore, using triangulation method can always improve the internal and external validity as a compensation of two methods in one research will help to swap the weakness to the strength of the other method (Denzin, 1978). Questionnaire Design Designing the research questionnaire is crucial because weak questionnaire will collect data that may not be relevant to the research question and may have unwanted output during the analysis stage. The researcher has been exposed to a wide range of questionnaire designs during the literature review that have reflected directly to the research. Likert scale is the most common and widely used by researchers (Teo and Tan, 2000; Tigre and Dedrick, 2004). It is used in the survey questionnaire as instrument to provide quantitative data. The seven-point likert scale is used as a means to gain the participants perceptions on a wide range of relationships between variables. Likert scale in this research ranging from 1 (strongly disagree), 2 (disagree), 3 (some what disagree), 4 (neutral), 5 (some what agree), 6 (agree) and 7 (strongly agree). Most of the variables and their related questions are meant to measure different aspects of online shopping experience. Some questions could seem repetitious to the respondents. The purpose of the survey is to examine statistically some of the driving factors that influenced customers' decisions to the continuance of use of internet shopping. The decision to consider using survey questionnaires (online) over any other methods was due to its efficiency, give the participants the time to answer the survey, functioning perfectly when answering question about ‘what, how, when, why’ (Pinsonneault and Kraemer, 1993). Translation of Questionnaires Even though the English language is considered the world business language, research is to be conducted in Saudi Arabia, where Arabic is the mother-tongue language. The sample will definitely contain participants who do not understand English or the language differences may limit their ability to answer all questions with no bias. Selecting the Population Related of the Research The target population for this research is the population where the research will be conducted. Mark (1996) has defined population as “population is the collection of all individuals, families, groups, organizations, communities, and events that researchers are interested in finding out more about”. For the purpose of this research, the target population consists of internet users who do make online shopping in Saudi Arabia. Even though the research focuses on e-shopping in Saudi Arabian Market, the researcher can not exclude foreigners who live in Saudi Arabia and using the online shopping from Saudi Arabia to participate on the survey since it is online survey. Selecting and defining the topic and methodology helped to gear the focus of the study to young internet users, who have experienced shopping online, and people with similar background coming from different geographic area within Saudi Arabia. Sampling Methods and Distributing the Questionnaires The researcher has contacted many Saudi colleges and universities as well as some Saudi firms prior distributing the survey. All of them welcomed conducting the research at their campus. The researcher starts with sending 600 personalized email containing the link to the online survey, accompanied by a covering letter from the researcher stating the objective of the research, definition of online shopping and the different wording that could be used for online shopping such as internet shopping, e-shopping, and electronic shopping. Also, the researcher has assured the participants that the participation is completely voluntary, responses are strictly confidential, and participants can stop anytime. As a second stage, the researcher then posted the cover letter in both languages and the link to the survey in 7 forums for 7 state Saudi universities. As suggested by Malhotra (2004), a follow up strategy on the progress on the participants was used by the researcher to increase the response rate. A total of 944 complete surveys have been received by the researcher in 45 days. For quite long survey, 97 questions, and as new experience for conducting online survey in Saudi Arabia and taking such risk, the responses were beyond the researcher expectation. Online Survey The questionnaire would be online to give more convenience to people to participate. Invitation for this research would be sent by email and then collected from separate independent groups of Saudi customers' living in different areas covering south, north, east, and west provinces. Data would be collected in a database, where monitoring respondents would be live. The online survey has many advantages over the traditional paper-based mail in surveys. The sample in this research is not restricted to a geographical location. Instead, people within the criteria are encouraged to participate over different geographical region as Saudi Arabia is a big country. Also, an online survey would lower the cost of collecting and entering the data. Finally, online survey would give faster responses and live monitoring of data (Bhattacherjee 2001). Since the research deals with understanding the driving factors for online continuance intention to shop and online behaviours are important, online survey would be more appropriate in targeting online customers. Data Analysis All received respondents would be subjected to quantitative analysis regarding the relation and trends among each dimension. To establish more detail results and analysis, deep data analysis and correlation among all aspects would be conducted. These analyses are helping in verifying all hypothesizes of the research study. Reliability Reliability is the way of testing the stability of individual measurement items across replications from the same source of information (Straub, 1989). Cronbach’s α is used to examine the reliability of each construct. Convergent validity means the extent to which the measures for a variable act as if they are measuring the underlying theoretical construct because they share variance (Schwab, 1980). Internal consistency reliability is generally considered a necessary but not sufficient condition for convergent validity (Schwab, 1980). Validity Validity in the social science research tries to measure intangibles, such as intention, behaviours, satisfaction, and trust. This problem makes it hard to know for certain whether we are measuring what we want to measure. Validity is the capacity of a test to tell what we already know (Bannister and Mair, 1968). Different type of validity is used that include face Validity used by asking the participants if they feel that the questions represent the purpose of the study that has been described in the covering letter. All respondents agreed that the questions represent the introduced propose of the study. Content Validity The Content Validity is to asses the research construct that were adopted from existing research that received content validity. Several faculty members from Brunel Business School, PhD students in Brunel and OM-Algora University in Makkah, Saudi Arabia, and R&D department in Saudi Airlines in Saudi Arabia have been asked to assess the questionnaire items if it represents the study adequately. All of them have agreed that it does. Finally, Criterion Validity means that the construct assessment can predict or agree with constructs external to the assessed construct. Ten constructs were measured in this study: Usefulness, Ease of use, Trust (Trust intention and trust willingness), Subjective Norm, Actual usage, Confirmation, Satisfaction, Enjoyment, Loyalty incentive, and Continuance intention to use. All constructs were measured using multiple item, fully anchored, seven-point, likert scale ranging from 1 (strongly disagree) to 7 (strongly agree). All initial scale items were taken from previously validated measures in IS literatures or TAM and ECT literatures. Scale items were reworded to relate to the e-shopping continuance usage context. Whenever possible, at least three items were included per construct for adequate reliability, as recommended by Nunnally (Nunnally, 1978). Passing this test is a prerequisite for further analysis. The Cronbach’s α of all the scales was acceptable with the lowest being intended use at .71 (Nunnally and Bernstein 1994). All other alpha coefficients were at least .746. Each variable was assessed for its reliability. In this research study, the Cronback’s alpha was .984, which exceeded the recommended alpha of Kline’s of >=.7. In a social Science and as recommended by Bagozzi (Bagozzi, 1994), .7 is considered as acceptable alpha. Bagozzi also considered 0.6 and 0.5 as an acceptable alpha. The second best internal measure is Split-half model. Split-half model splits the scale into two parts and examines the correlation between the parts (Field, 2005). The split-half model shows .914 of Spearman-Brown reliability, which is better than the recommended .7 of better by Kline’s criterion and most researchers. The Cronbach Alpha for the two parts is very close .978 and .967. The researcher is in the process of doing the intensive data analysis as just finished data collection. General Discussion of Research Finding The study survey was collected from a sample of 944participants in Saudi Arabia. They represent online users who are undergraduate, postgraduate, and professionals and experts who are working. 69.9% of the participants were female and 30.1% were male. Most respondents were in their late 20s, 3.2% less than 18 years old, 29.6% between age 18-25, 40.8% age 26-35, 19.9 age 36-45, and 6,6% age 46 and above. Their education levels were 3.2% with less than high school qualification, 10.6% with high school, 12.4% with diploma, 53.2% with bachelor degree, and 21.9% postgraduate. 31.3% of them work in public sector (government employee), 36.5% in the private sector, 7.1 were businessmen, and 25.1% were students. Almost 45.3% has a range of income between £1,000- £4,000. Main contribution of the research The results of this research should help e-commerce scholars and practitioners to understand what derive customer to continue e-shopping in Saudi Arabia, improve the web sites quality, enhance customers e-shopping experience, encourage purchase and repurchase. Furthermore, this research might serve as a base to understand e-shopping acceptance, usage, and continuance to use in the Saudi Arabia and the Gulf Region. Outline of the Thesis The research is divided into six parts and proceeds as follow: the first part contains a background of the IT and e-commerce in Saudi Arabia. The second part presents the literature review on online shopping, TAM and ECT. The third and the fourth parts contain the research question and methodology. The fifth part presents the data analysis. The last part consists of the conclusion and the practical implications of the research. References • Ba, S., Whinston, A., B., and Zhang, H. "Building Trust in the Electronic Market using an Economic Incentive Mechanism," the 1999 International Conference on Information Systems, Charlotte, NC, 1999. • Beatty, S.E., Mayer, M., Coleman, J.E., Reynolds, K.E., and Lee, J. "Customer- Sales Associate Retail Relationships," Journal of Retailing (72:3) 1996, pp 223-247. • Bhattacherjee, A. "Individual Trust in Online Firms: Scale Development and Initial Test," Journal of Management Information Systems (19:1) 2002, pp 213-243. • Bhattacherjee, A. 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"An International investigation of Cultural and Demographic Effects of Domestic Retail Loyalty," International Marketing Review, 18(5), 2001,521-541. • Taylor, S., and Todd, P. A. "Understanding Information Technology Usage: A Test of Competing Models," Information Systems Research (6:2), June 1995b, pp. 144-176. • Urban, G.L., Sultan, F., and Qualls, W.J. "Placing trust at the center of your Internet strategy," Sloan Management Review (42:1) 2000, p 39. All other references are available upon request. Appendix Reliability Statistics for all survey items N% Cases Valid 944 100.0 Excluded( a) 0 .0 Total 944 100.0 a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .984 .985 67 Summary Item Statistics Mean Minimum Maximum Range Maximum / Minimum Variance N of Items Item Means 4.930 2.586 5.704 3.119 2.206 .467 67 Item Variances 2.420 .714 3.682 2.968 5.159 .250 67 Inter-Item Covariances 1.161 -.133 3.014 3.148 -22.621 .224 67 Inter-Item Correlations .487 -.049 .932 .981 -19.099 .038 67 The covariance matrix is calculated and used in the analysis. Scale Statistics Mean Variance Std. Deviation N of Items 330.30 5297.861 72.786 67 Split‐half model Reliability Statistics Cronbach's Alpha Part 1 Value .978 N of Items 34(a) Part 2 Value .967 N of Items 33(b) Total N of Items 67 Correlation Between Forms .842 Spearman-Brown Coefficient Equal Length .914 Unequal Length .914 Guttman Split-Half Coefficient .913 1. a The items are: Perceived Easy of Use 1, Perceived Easy of Use 2, Perceived Easy of Use 3, Perceived Easy of Use 4, Perceived Easy of Use 5, Perceived usefulness 1, Perceived usefulness 2, Perceived usefulness 3, Perceived usefulness 4, Perceived usefulness 5, Perceived usefulness 5, Trusting Beliefs Benevolence 1, Trusting Beliefs Benevolence 2, Trusting Beliefs Benevolence 3, Trusting Beliefs Integrity 1, Trusting Beliefs Integrity 2, Trusting Beliefs Integrity 3, Trusting Beliefs Integrity 4, Trusting Beliefs Competence 1, Trusting Beliefs Competence 2, Trusting Beliefs Competence 3, Trusting Beliefs Competence 4, Trusting Intentions Willingness 1, Trusting Intentions Willingness 2, Trusting Intentions Willingness 3, Trusting Intentions Willingness 4, Actual Use 2, Actual Use 3, Actual Use 4, Perceived Site Quality 1, Perceived Site Quality 2, Perceived Site Quality 3, Perceived Site Quality 4, Perceived Site Quality 5. 2. b The items are: Perceived Vendor Reputation 1, Perceived Vendor Reputation 2, Confirmation 1, Confirmation 2, Confirmation 4, Confirmation 5, Confirmation 6, Confirmation 7, Confirmation 8, Confirmation 9, Satisfaction 1, Satisfaction 2, Satisfaction 3, Satisfaction 4, Satisfaction 5, Satisfaction 6, Loyalty incentive 1, Loyalty incentive 2, Perceived enjoyment 1, Perceived enjoyment 2, Perceived enjoyment 3, Perceived enjoyment 4, Perceived enjoyment 5, Perceived enjoyment 6, Perceived enjoyment 8, Subjective Norms 1, Subjective Norms 2, Subjective Norms 3, Subjective Norms 4, Subjective Norms 5, Subjective Norms 6, Continuance intention of use 1, Continuance intention of use 2. Some of the demographic finding Gender Frequency Percent Valid Percent Cumulative Percent Valid Male 284 30.1 30.1 30.1 Female 660 69.9 69.9 100.0 Total 944 100.0 100.0 Age Frequency Percent Valid Percent Cumulative Percent Valid Less than 18 30 3.2 3.2 3.2 Between 18-25 279 29.6 29.6 32.7 Between 26-35 385 40.8 40.8 73.5 Between 36-45 188 19.9 19.9 93.4 Above 46 62 6.6 6.6 100.0 Total 944 100.0 100.0 Companies do you trust more Frequency Percent Valid Percent Cumulative Percent Valid Local companies 113 12.0 12.0 12.0 International companies 397 42.1 42.1 54.0 Trust them both the same 434 46.0 46.0 100.0 Total 944 100.0 100.0