A study on factors affecting customer repurchase intention toward online shopping
Abstract
Along with the development of the Internet, E-commerce has changed the way people do shopping. It brings customers a lot of advantage such as increasing ease of use, control, and reducing transaction costs (Scullion & Nicholas, 2001; Unsal & Movassaghi, 2001; Zeithaml, 2002). Therefore, online services have developed quickly and have risen as the leading player in service industry. Not only the Internet service providers want to take the advantage of this growth, but also the large numbers of conventional suppliers utilize the Internet to provide online services. As the results, this phenomenon has brought the appearance of a huge number of online suppliers and created fierce competitions among them. An online business provider can take the competitive advantage from customer loyalty and retention for repeat buying (Hellier, Geursen, Carr, & Rickard, 2003; Tsai & Huang 2007). Thus, to survive in this market, business owners need to make the customers keep repurchasing their products or services.
This research aims to examine the how different factors interactively affecting perceived value that in turn influences repurchase intention. The relationship between perceived value and repurchase intention is also investigated. The target populations are customer living in Ho Chi Minh City who have purchased products through online shopping websites at least once time. Besides, the research applies quantitative method and structural equation modeling with the sample size of 400 respondents from different ages, occupations and income levels. Despite the research study hypothesized seven independent variables, which were Perceived Value, Perceived Enjoyment, E-Service Quality, Sacrifice, Product Quality, Price Value and Care, causing impacts on repurchase intention; the final findings reveal that Perceived Value actually has no influence on Repurchase Intention, only three out of seven variables have effect on it and other three variables have impact on perceived value. Specifically, Care has the greatest impact on Repurchase Intention, followed by Price Value and Product Quality; whereas Perceived Value is mostly affected by Price Value, which is run after by Product Quality and Perceived Enjoyment. In short, this research helps to gain deeper understanding of conditions leading to online repurchase intention of customers.