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Extended Abstract

Understanding the Driving Factors that


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.
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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

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