Chapter: customers (Chang, Kuo, Hsu, & Cheng, 2014). Consumer

Chapter: 2                                         

Literature Review

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v Website quality
and consumer online purchase intention

The
term of quality refers to features and characteristics of a product or a
service. Website quality refers to the characteristics of the website which
adds value to the customers (Chang, Kuo, Hsu, & Cheng, 2014).

Consumer
purchase intention defined as the possibility that customer will willing to buy
a product later (Wu, P.C.S., Yeh, G.Y.Y., Hsiao, C.R. (2011). Consumer online
purchase intention referred to the willingness of the customers whether they
will buy a product via internet or not.

 The main purpose of website is to provide
information to the consumers about all the products. How a website can meet the
expectation of the customers? It is an important question which directly relate
to the quality of website (Zahedi, 2009:5). In the e-commerce, one important
factor is website quality because consumer’s perception of website quality
positively influences his intention to use the website (H. H. Chang and S. W.
Chen, 2008) and this positive influence of use of website directly influences
the consumer online purchase intention (D. H. McKnight, V. Choudhury, and C.
Kacmar, 2002).

In
e-commerce website quality has become an important task for the e-businessmen
because without a good website quality they cannot attract the more customers. Website
quality influence the integrity and reliability of the company (Laja, 2015)
which directly affect the consumer online purchase intention (Bai, Law, &
I., 2008). Many researchers found that there is significant positive
relationship between the website quality and company trust (Mcknight,
Choudhury, & Kacmarc, 2002). On the bases of marketing services, to attract
the new customer and to retain the customers customer’ needed information
should be provided on the website (Hsu, Cheng, Chen, 2012).

Bai
et al.in his study, studied the direct effect of the website quality on the
consumer satisfaction and his online purchase intention in china. The result of
his study showed that website quality directly affects the consumer
satisfaction and customer satisfaction directly influence the consumer online
purchase intention (Bai, B., R. Law and I. Wen, 2008). (Hasanov, J., & Khalid, H, 2015), analyzed the influence of
the website quality towards the consumer online purchase intention of the
organic products in Malaysia and the results of study showed that website
quality had no direct impact on the consumer online purchase of the organic
food. Website quality influence the consumer online purchase intention with
fully mediation role of customer satisfaction.

 (Chang, Kuo, Hsu, & Cheng, 2014), in their
study tried to analyze the relationships among the website quality, website
brand, perceived value, perceived trust and the consumer online purchase
intention in the sector of hotel which results showed that website quality had
indirect impact on consumer online purchase intention though the consumer
perceived trust and the website quality and consumer perceived trust had stronger
relation if consumers perceived good website brand. Findings also indicated
that the consumer perceived trust and consumer online purchase intention had
strong relation if the consumer perceived high service quality

Many
researchers, in their studies had examined the impact of the website quality on
consumer trust and loyalty. The results of their studies showed that trust is
one the important factor for the success of any e-commerce activity (Winnie,
2014). (Octavia, D., &
Tamerlane, A, 2017), in their study analyzed the impact of website quality on
the consumer online purchase intention with mediating role of consumer
electronic-trust. The results of their study showed that website quality had
significant impact on the consumer electronic-trust and electronic-trust of the
consumer also had significant impact towards the website quality. The results
of a study also indicated that website quality had direct influence on the
consumer online purchase intention of air ticket Sam, M., Fazli, M.,
& Tahir, M. N. H. (2009).

Various
dimensions of website quality have been identified by the researcher like
trust, reliability, ease of use and information quality (Barnes & Vidgen,
2001). Hsu et al used the five dimensions in his study which were the customer
perceived flow, service quality, perceived playfulness, system quality and
information quality to measure the website quality (Hsu, Chang, & Chen,
2012). Which’s results showed that service quality has a directly influence on
the consumer online purchase intention.

 (Kim, S. and L. Stoel,
2004) studied the different dimensions of website quality and find the
influences of these dimension on customer satisfaction. They explored and
explained the six dimensions of website quality and then analyzed the direct
effect of these six dimensions on the consumer satisfaction. The results of the
study confirmed that these dimensions of website quality had direct influence
on the consumer satisfaction. According to the (H. F. Lin, 2007) a model of
three website quality’s dimensions was used, in which information quality and
system quality were defined according to the technical perspective and service
quality was defined according to the customer’ perspective.

Dimensions of website
quality

 Information quality referred to the amount of
the information about the products and services which are offered on the
website (Nusair et al., 2008). Up-to-date and complete information are two
important factors that are included in information quality because these two
factors can increase the customer satisfaction and can change the consumer
online purchase intention (Afkhami, Torabi, 2012: 223). Bai et al, in his
research analyzed the direct effect of information quality on the consumer
satisfaction and consumer online purchase intention (Bai, Law, & I., 2008).
The result of study showed that effective flow of information positively
influences the consumer online purchase intention (Bai, Law, & I., 2008).

 System quality is defined as the level at
which the consumer thinks that website is flexible, easy to understand,
reliable, easy to use and effective. (Kirakowski, Claridge, & Whitehand,
1998). Poor system quality decreases the consumer satisfaction and discourage
the consumer from the of use of website which directly influences the consumer
purchase intention. online businesses can increase the rate of consumer
purchase intention and achieve their goals if their website system is proper
implemented. Service quality refers to the overall analyses of consumer
regarding the service which has received through the website (Palmer, 2002).

Service
Quality is also another important measure of website quality because service is
considered an important factor of the consumer’s satisfaction which directly
influence the consumer decision making behavior and online purchase intention
(Zivyar, 2012: 178). The result of Hsu’s study showed that service quality has
a direct influenced on the consumer online purchase intention (Hsu, Chang,
& Chen, 2012). Swaid and Wignd in his study explored the different
dimensions of the e-service quality (Swaid & Wigand, 2009). The results
indicated that good customer relations, quick response, availability and
assurance are some important dimensions of the e-service quality.

Customer
service quality deals with the quick responses to the consumer’s questions.
Lack of quick response to consumers, specially to the e-mails queries will
create difficult situation to the consumers and this situation can affect their
online purchase intention. It means if the website will give the quick and
immediate response to the consumers queries, it can influence the consumers to
visit or re-visit the website for the online shopping (Mohd. Shoki, M.A., Ng
Sze Yan, Norhayati Z., Kamaruzaman A.R, Khalid I. 2014) and (Shergil, G.S., and
Chen, Z. 2005).

Instead
of the website quality many research used the reputation one another important
factor that stimulate the consumer purchase intention. Kim and Lennon in his study analyzed the impact of
reputation on the consumer online purchased intention (Kim & Lennon, 2013).
The
results showed that reputation and website quality has positive influence on
the consumer’s emotions but has a negative impact on the perceived risk. Many
researchers indicated that perceived risk and emotions both are very important
factor that effects the consumer online shopping behavior.

(Chang
and Chen) in his study tried to be analyzed the impact of customer interface
quality, customer satisfaction and switching costs (Chang & Chen, 2008a). A
survey was conducted to analyze the perceptions of the customers. The results showed
that the professional communication skills and interaction with them positively
affect the feelings of the customers. Further, results of his study showed that
switching costs were considered the main factor that effected the customer
e-loyalty.

(Pan, Y., Wang, M.,
Chen, C., & Qu, H, 2017) in their study found the influence of web
experience on the consumer online purchase intention which results showed that
web experience positively relate to the consumer online purchase intention. The others researcher in their study, analyzed
the impact of online store image and product brand image and perceived risk on
the consumer online purchase intention of apparels products which result showed
that product brand image and store image both indirectly had their impact on
the consumer online purchase intention for the apparel products (Aghekyan-Simonian, M., Forsythe, S., Kwon, W. S., &
Chattaraman, V. 2012).

(Belanche, D., Casaló,
L. V., & Guinalíu, M. 2012), analyzed that effect of the website usability
on the consumer satisfaction and intention to use of website which results
indicate that website usability had not the direct effect on the consumer
intention to use website but indirectly influence the consumer use of website
through the consumer satisfaction. (Hsuan-Yu Hsu and Hung Tai Tsou, 2011),
investigated the impact of website quality on the consumers emotions and on
their repurchase intention. The results indicated that website quality is positively
associated with the consumer positive emotions and these positive emotions
positively associated with the consumer repurchase intention.

Consumer’ perceived risk

Consumer
online perceived risk is defined as the consumers’ beliefs about the probable
doubtful negative consequences from the online shopping (Kim et al., 2008:
Soto-Acosta et al., 2014).

The
Perceived risk is considered very important factor for the online buyers during
the online shopping particularly when they have no more information about the
sellers Finch, B.J. (2007).  Perceived
risk refers to uncertainty level of the consumers during online shopping. According
to the previous research, now perceived risk has become an important key factor
for the online consumer when they make the decision in online shopping process
Liebermann, Y. and Stashevsky, S. (2002).

(Vinay
Kumar, Sumit Mishra, 2012), conduct a study on the customer attitude towards
the online shopping with including the role of perceived risk which results
indicated that the customer attitude towards the benefits and risk of online
shopping negatively affect the customer online purchase intention. (Bo Dai, Sandra Forsythe, Wi-Suk Kwon, 2014), analyzed
the effect of online shopping experience on the perception of consumer
perceived risk and online purchase intention which results indicated that
online shopping experience positively associated with the consumer online
purchased intention and consumer perceived risk.

Emad
Y. Masoud, analyzed the impact of perceived risk on the consumer online
shopping behavior in Jordan. In his study, he analyzed the impact of the
different dimension of the perceived risk like financial risk, product
risk, time risk, information security risk and delivery risk on the consumer
shopping behavior in Jordan. The results of the study showed that financial
risk, security risk and security risk had negative impact on the consumer shopping
behavior while time risk and delivery risk had no impact on the consumer shopping
behavior Emad Y. Masoud (2013). Financial risk, privacy risk and security risk
are very consequential factor that change the consumer online purchase
intention during making the online transaction (Wang and Mulligan 2004,
Yousafzai, Pallister et al. 2005).

According
to the consumers point of view, purchases that occur in a conventional store
are less risky than the purchases in online store Suki, N. (2007). The buyers
who perceived high risk during the online shopping they purchase less than the
other buyers who perceived low risk (Miyazaki and Fernandez). A study showed
that due to no physical appearance of buyer and seller in online shopping the
level of perceived risk always remains high (Forsyth & Shi, 2003). (Huang, W. Y., Schrank, H., & Dubinsky, A.
J, 2004), conducted a research to investigate the relationship of product brand
name and consumer perceived risk in online shopping which results indicated
that presence of product brand name deduced the consumer perceived risk.

Sorce et al.
(2005) in his study, supported the Bhatnagar et al. who explained the two kinds of risks:
financial risk and the product category risk. The financial risk is related to
the security and privacy in which the consumers scared about the security of
their financial information given to buyer during the online shopping and the
misuse of their bank details (Goldsmith and Flynn, 2004). Perceived risk varies according
to the type of the product like in the purchase of the books the information
provided on the website may be sufficient to decrease the level of the risk
during the online shopping process. Consumers’ perception of risk also remains the
high on those products in which they want to feel and touch the products before
making the purchase. But in the purchase of glossary products consumers look
very conscious about the quality, color and design and perceived high risk.

 Barnes et al (2007), explained that high
perceived risk decreases the willingness of the buyers to purchase the products
from internet. There are many types of perceived risk that the consumers face in
online shopping. Claudia, I. (2012) studied the seven types
of perceived risk like financial risk, product risk, time risk, delivery risk,
social risk, psychological risk and privacy risk that consumer face in online
shopping. Meenakshi et al in his study showed that perceived trust, perceived
risk and the benefits of the online shopping also affect the consumer online
shopping behavior of the youngest.

Vijayasarathy
et al. in his study analyzed the impact of perceived risk on the consumer
attitude toward the online shopping and his intention to purchase online Vijayasarathy
LR, Jones JM (2000). While in the others study, the researchers found that the
consumer perceived risk may decreased with the increase of online purchase
experience Miyazaki D, Fernandez Ana (2001).

Dimensions of perceived risk

Financial
risk referred to fear of monetary loss that can occur from online shopping.
(Jacoby & Kaplan, 1972). Perceived financial risk is considered very
important risk factor from the consumers perspective, which they can face
during the online shopping experience. Fear of fraud, misuse of credit card
numbers and online blackmailing are some causes that bound the customer to make
the purchase via traditional way instead of online. Previous research showed
that the fear of credit card number represented the one the important cause
during the online shopping according to the customers Saprikis
V., Chouliara A., Vlachopoulou M., (2010).

Product
risk measures the consumer’s concern about the product quality, product size.
Product color and falseness of the product. It is associated with the
disappointments of customers which they can experience when the purchased
products do not meet their expectations Forsythe S, Liu C, Shannon D, Gardner
LC (2006). When purchasing happen in an online store, especially for the
apparels products, it cannot be denied that consumers feel unsecure regarding
the product material, product size and product color. Park
and Stoel (2005), in their study agreed that apparels products like jeans,
paints, sweaters and shirts are considered very high risks products because size,
color, quality and fitting mattering to the consumers concern.

Privacy
risk is defined as the probability of having the personal information which are
disclosed due to the result of online transaction (Garbarino &
Strahilevitz; 2004). Privacy risk is negatively associated to the consumer
online purchase intention. Chapell’s survey (2005), found that 69% of US online
consumers stop to make the purchase via internet due to fear of their private
information because they feel that their personal information may be disclosed to
anyone. Many researchers also found that consumers reluctant to provide their
personal information which are required during the online transaction like
phone number, email address, home address and credit card number.

Time
risk or convenience risk referred to the loss of time which the consumers can face
during the searching and purchasing process of the online products. In the time
risk, consumers normally fear with the delivery of the products they feel that
company will not deliver the products within the given time or will not deliver
the product at the right place or the product packing  will not be same  (Claudia, 2012).A research study showed that ime
risk had no strong effect on the consumer online purchase intention as contrast
to the other dimensions of perceived risk (financial risk, product risk and security
risk) Crespo AH, del Bosque IR, de los Salmones Sanchez MG (2009),

On
the base of existing literature, it is cleared that many studies have been
taken on the website quality, the consumers online purchase intentions and
consumers online shopping behaviors by the researcher which’s results indicated
that there exists a positive relationship between them. The research gap is
perceived risk. The existing gap shows that there is need to investigate the
website quality and consumer online purchase intention with the moderating role
of perceived risk.

 

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