Department of Information Management, National Kaohsiung First University of Science and Technology, Taiwan, ROC
Department of Tourism Information, Aletheia University, Taiwan, ROC
c
Department of Digital Media Arts & Design, Fuzhou University, Peoples Republic of China
b
a r t i c l e
i n f o
Article history:
Keywords:
Repeat purchase intention
Expectationconrmation model
Customer value
Habit
Trust
Satisfaction
a b s t r a c t
The success of online shopping depends on customers repeat purchasing. This study proposed a theoretical model by integrating the literature of expectationconrmation model and online shopping to test the
factors affecting repeat purchase intention in online group-buying. Data collected from 246 respondents
were used to test the proposed model. The results show that trust and satisfaction are the strong predictors of repeat purchase intention. The results also reveal that satisfaction has signicant inuence on trust,
whereas perceived value, conrmation, and website quality are the signicant antecedents of satisfaction. Our results report that website quality has positive inuence on perceived value. Finally, perceived
value exerts stronger effect on repeat purchase intention for high-habit customers, whereas trust and
satisfaction have higher inuence on repeat purchase intention for low-habit customers. Implications
and limitations are discussed.
2014 Elsevier Ltd. All rights reserved.
1. Introduction
Online group-buying is a business model of e-commerce that
enables customers to obtain volume discounts (Kauffman, Lai, & Ho,
2010). Many researchers have found that group-buying play a vital
role in e-commerce (Chen, Chen, & Song, 2007). A number of companies in the US and East Asia have adopted online group-buying
in their core business models (Kauffman & Wang, 2002; Kauffman,
Lai, & Ho, 2010). Despite the constant growth of interest in online
group-buying, customers loyalty in the online context is relatively
lower (Cheng & Huang, 2013). The retention of customers has
become an essential question for e-retailers to consider (Qureshi
et al., 2009; Shin, Chung, Oh, & Lee, 2013; Tsao, 2013). In this study,
Bhattacherjees (2001a) expectationconrmation model (ECM) is
applied to explore the determinants of repeat purchase intention
in online group-buying.
ECM is a well-researched model that has been used to predict behavior in various settings, including e-commerce (e.g.,
Bhattacherjee, 2001a, 2001b). Thus, it is reasonable to expect that
ECM could be used to explain online customer behavior. However,
previous literature argues that ECM should be extended by incorporating some theoretical perspectives to increase its predictive
power (Lin, Wu, & Tsai, 2005). By integrating the literature
of ECM (e.g., Hong, Thong, & Tam, 2006; Lin, Wu, Hsu, &
Chou, 2012) and online shopping (e.g., DeLone & McLean, 2004;
Zeithaml, Parasuraman, & Malhotra, 2002), we argue that perceived
usefulness in ECM is replaced by perceived value to reect customers perceptions about extrinsic and intrinsic benets in online
shopping and the viewpoint of website quality in DeLone and
McLean IS success model (D&M model) (DeLone & McLean, 2003)
can be used to reect customers perception about the quality of
the website (e.g., system quality, content quality, and service quality). Generally, integrating value and website quality into ECM
is in line with the assertions of Fornell, Johnson, Anderson, Cha,
and Bryant (1996) that customer expectations will affect perceived
value, perceived quality, and satisfaction. In addition, researchers
argue that satisfaction does not always predict customers continuous purchasing (Li, Browne, & Wetherbe, 2006) and trust is
a useful predictor of repeat purchase intention (Qureshi et al.,
2009). Accordingly, trust is be added to ECM to test its effect on
repeat purchase intention, following Casal, Flavin, and Guinalu
(20102011).
Researchers argue that the effects of the determinants of repeat
purchase intention may be contingent on the habit of online
46
2. Theoretical background
2.1. The online group-buying mechanism
Providing the lower prices to customers by accumulating a
large number of orders is the core concept of online group-buying
(Kauffman & Wang, 2002). Similar to online shopping, transactions
in the online group-buying include ve key processes, including
information searching (the process for gathering information about
products and prices), authentication (the process for verifying the
authenticity of the trading parties), price negotiation (the process for the discovery of a purchase and sale price for a product),
payment and settlement (the process for dening the terms and
method of payment), and post-transaction logistics (the process
for specifying and coordinating shipment of goods from the seller
and delivery to the customer) (Kauffman, Lai, & Lin, 2010). In particular, there are two types of pricing mechanisms in the process of
price negotiation, including posted price mechanism (sellers will
display the prices and they ask for the consumers decide whether
they would accept the prices or not) and dynamic pricing mechanism (customers can actively negotiate with the sellers to reach a
satisfactory price) (Kauffman & Wang, 2002). Moreover, the transactions in online-group buying could be initiated by an auction
initiator (a seller or customer) in some countries (Kauffman, Lai,
& Lin, 2010).
Recently, online group-buying business has become an interesting model for online transactions in some countries, such as US
(e.g., Goupon), Taiwan (e.g., iHergo and GOMAJI), and China (e.g.,
Taobao.com and Teambuy). Prior literature has also found that
online group-buying markets in East Asia are successful (Kauffman,
Lai, & Ho, 2010), since shopping in online group-buying in East Asia
is viewed as a leisure activity and the uncertainty about the nal
product price can be mitigated because prices are known when
customers decide to purchase products (Kauffman, Lai, & Ho, 2010).
While encouraging people to purchase online is an important
rst step toward success for online sellers, its eventual success still
depends on customers repurchasing (Bhattacherjee, 2001a; Shin
et al., 2013). However, prior literature argues that only a small
portion (about 1%) of online customers will return to make purchase (Gupta & Kim, 2007; Qureshi et al., 2009). It is therefore
important to explore the antecedents of repeat purchase intention in online group-buying (Qureshi et al., 2009). Recently, some
47
Table 1
Prior literature on expectationconrmation model.
Studies
Context
Dependent
variable(s)
Independent variable(s)
Key ndings
Bhattacherjee (2001a)
Online banking
Continuance
intention (CI)
Bhattacherjee (2001b)
Online brokerage
Continuance
intention (CI)
Virtual
communities
Intention to follow
advice (IFD),
intention to use
community
product (ICP),
Online service
Mobile Internet
Continuance
intention (CI),
recommendation
(REC), complain
(COM)
Continued IT usage
intention (CI)
Online service
Continuance
intention (CI)
Lee (2010)
E-learning
Continuance
intention (CI)
WWW
IS continuance
intention (CI)
Web portal
IS continuance
intention (CI)
Internet protocol
television
Continuance
intention of IPTV
(CI)
Recker (2010)
Process modeling
grammars
Continuance
intention (CI)
48
Table 2
Prior literature on repeat purchase intention.
Studies
Context
Dependent
variable(s)
Independent variable(s)
Key ndings
Online auction
Repeat purchase
intention (RPI)
Repurchase
intention (RI)
Online shopping
Online repurchase
intention (RI)
Online shopping
Purchase intention
(PI)
Repurchasing
intention (RI)
Value
H1
Habit
H11
H3
H5
H4
Confirmation
H6
H7
H2
Website
Quality
H8
H12
Satisfaction
H9
H13
Repeat
Purchase
Intention
H10
Trust
reaction that is stimulated by a condition/environment cause without a thinking or conscious mental process due to the cumulate past
experience connection between the shopping behavior and satisfactory results (Chiu et al., 2012; Limayem et al., 2007; Wood &
Neal, 2007; Wood, Quinn, & Kashy, 2002).
According to previous literature (Chiu et al., 2012; Khalifa & Liu,
2007), the link between habit and repeat purchase intention can be
categorized as two perspectives. The rst perspectives asserts that
habit exerts a direct effect on repeat purchase intention, while the
second perspective asserts that habit moderates the relationship
between repeat purchase intention and the antecedents of repeat
purchase intention. The focus of this study is the moderating role of
habit, since the direct effect of habit on repeat purchase intention
has been tested by previous studies (e.g., Chiu et al., 2012; Khalifa
& Liu, 2007). Thus, examining the changes in the effects of determinants of repeat purchase intention under the different strength of
habit may further account for the role of habit (Khalifa & Liu, 2007).
Past literature has found that habit will moderate the inuences
of trust and satisfaction on repeat purchase intention. For example,
Chiu et al. (2012) nd that importance of trust will decrease as habit
increases over time. Khalifa and Liu (2007) assert that satisfaction
may not necessarily lead to intention to return to an Internet store
when a habit of online shopping has not been formed. Anderson
and Srinivasan (2003), on the other hand, posit that habit will lower
the link between satisfaction and customer loyalty. Accordingly, we
recognize that the effects of the determinants of online repeat purchase intention may be contingent on the habit of online shopping
(Khalifa & Liu, 2007). In this study, we aim to compare the moderating inuence of habit on the linkages between repeat purchase
intention and its determinants (i.e., value, satisfaction, and trust).
49
Satisfaction reects customers pleasure or disappoint resulting from comparing perceived performance with their expectations
(Chiu et al., 2012). Thus, when customers fell that perceived benets outperform expectations, satisfaction will result (Recker, 2010).
In the online context, past studies have found that conrmation
affects consumer satisfaction signicantly (Lee & Kwon, 2011;
Limayem et al., 2007; Lin et al., 2005). Therefore,
H4. Conrmation is positively related to satisfaction.
ECM also holds that customer satisfaction is the result of a customers perception of expected benets. From the perspective of
social science, affective response is triggered by cognitive though
process (Chiu et al., 2012). Generally, perceived value is considered as cognition-based construct capturing the benet-sacrice
discrepancy, whereas satisfaction is an affective evaluation process (Chiu et al., 2012; Lin & Wang, 2006). Thus, perceived value is
treated as the determinant of satisfaction. Previous literature has
provided empirical evidence to support the relationship between
50
perceived value and satisfaction (Chiu et al., 2012; Lin & Wang,
2006; Tsao, 2013). Thus,
As mentioned above, social exchange theory asserts that an individuals behavior is driven by expected benets. In this regard,
uncertainty, the possible reverse outcome, is regarded as a key
factor that may inhibit customers intention to engage in online
transactions (Pavlou et al., 2007). Prior literature argues that the
formation of habit requires a stable context (Limayem et al., 2007).
This implies that a customers behavior could be performed automatically when uncertainty perception is mitigated. Therefore, we
may expect that a strong habit will increase the effect of perceived
value on repeat purchase intention. Thus,
H11. Habit will increase the inuence of perceived value on repeat
purchase intention.
Habit is considered as a factor that will moderate the inuence
of satisfaction on repeat purchase intention positively. As Khalifa
and Liu (2007) suggest, if customers have same level of satisfaction
with an online store, a customer who has high levels of habit will
be more likely to repurchase from the same online store than those
without such habit. Khalifa and Liu (2007) also provide an empirical
evidence to support that habit positively moderate the inuence of
satisfaction on repeat purchase intention. Therefore,
H12. Habit will increase the inuence of satisfaction on repeat
purchase intention.
Habit has been also considered as a major factor moderating the
inuence of trust on repeat purchase intention (Chiu et al., 2012).
In general, habit is an automatic behavioral response resulting
from frequent performance in a stable context (Khalifa & Liu, 2007;
Ouellete & Wood, 1998). When online shopping behavior is repeatedly executed in a stable context and becomes habitual, the need
to engage in the cognitive evaluation of the online sellers trustworthiness will be suppressed (Chiu et al., 2012). Past literature
has found that habit exerts a moderating role in the relationship
between trust and repeat purchase intention (Chiu et al., 2012).
Therefore, we propose the following hypothesis.
51
Table 3
Demographic information about the respondents (N = 246).
Measure
Items
Frequency
Percentage (%)
Gender
Male
Female
61
185
24.8
75.2
0.118
Age
Below 24
2535
3645
Above 45
104
123
14
5
42.3
50
5.7
2
0.068
Education
High school
College (2 or 4-year)
Graduate or above
4
180
62
1.6
73.2
25.2
0.104
12
34
56
Above 6
88
73
62
23
35.8
29.7
25.2
9.3
0.235
52
Table 4
Measurement Items.
Construct
Item
Factor loading
0.81
0.86
0.83
0.75
0.74
0.80
0.79
0.74
0.78
0.79
0.79
0.79
0.78
0.76
0.90
0.82
0.86
0.89
0.93
0.89
0.85
0.87
0.84
0.94
0.94
0.86
addition, all the method factor loadings are not signicant. Thus,
we may contend that common method bias is not a major concern
for this study.
5.2. Structural model
The theoretical model and hypothesized relationships were estimated using the bootstrap approach with a sample size of 500 to
generate t-values and standard errors for determining the signicance of paths in the structural model. In order to test moderating
effect of habit, we use the subgroup analysis method to test the
model in full and each subgroup, following Ahuja and Thatcher
(2005) and Chang, Hsu, Hsu, and Cheng (2014). In this study, the
groups were divided into high-habit subgroup (N = 105) and lowhabit subgroup (N = 141) using the median (Baron & Kenny, 1986;
Chiu et al., 2012). Fig. 2ac summary the results of structural model
test.
As shown in Fig. 2a, conrmation inuences perceived value
and website quality signicantly, thereby validating H1 and
H2 ( = 0.288, 0.556; t = 4.612; 8.120, respectively). In addition,
coefcient between conrmation and satisfaction is signicant
( = 0.273, t = 4.787), thus supporting H3. Website quality exerts
positive effect on perceived value, ( = 0.484, t = 7.256), thus H4
is supported. Perceived value and website quality have signicant impacts on satisfaction as well ( = 0.314, 0.159; t = 4.673;
2.273, respectively). The results support H5 and H6. Furthermore, satisfaction exerts a positive effect on trust, while perceived
value has signicant inuence on repurchase intention ( = 0.467,
0.421; t = 5.783; 6.037), indicating H7 and H8 is supported. On the
other hand, satisfaction and trust have positive impacts on repeat
Table 5
Correlations of latent variables and AVE.
Construct
Mean
STD
AVE
CON
PV
WQ
SAT
TRT
HAB
RPT
CON
PV
WQ
SAT
TRT
HAB
RPT
4.16
4.34
4.43
4.29
4.33
4.36
4.37
0.58
0.51
0.55
0.56
0.63
0.54
0.56
0.69
0.59
0.60
0.74
0.82
0.72
0.84
0.83
0.56
0.56
0.54
0.50
0.54
0.57
0.77
0.65
0.57
0.41
0.50
0.59
0.77
0.51
0.53
0.45
0.48
0.86
0.47
0.44
0.50
0.91
0.43
0.43
0.85
0.46
0.92
Notes: 1. Diagonal elements (in shade) are the square root of the average variance extracted (AVE). Off-diagonal elements are the correlations among constructs. For
discriminant validity, diagonal elements should be larger than off-diagonal elements. 2. CON: conrmation; WQ: website quality; SAT: satisfaction; TRT: trust; HAB: habit;
RPT: repeat purchase intention.
53
54
online shopping) and intrinsic benets (e.g., enjoyment and hedonic) and is a strong predictor of customer satisfaction and repeat
purchase intention. The ndings mean that online sellers should
provide greater functional value and hedonic value for customers
to increase customer satisfaction and repeat purchase intention.
This can be done by providing an efcient and effective search
function and sufcient product information to help customers to
nd the desired products efciently and effectively (Chiu et al.,
2012).
Finally, by testing the moderating effects of habit on the relationships between repeat purchase and its antecedents, our results
report that satisfaction will predict lower level of repeat purchase intention for customer with high levels of habit, once
perceived value is taken into account. This nding provides
a possible explanation for the mixed results of Anderson and
Srinivasan (2003) and Khalifa and Liu (2007). That is, while the
effect of satisfaction on repeat purchase intention will become
stronger as habit of online shopping increases, habit will lower
the sensitivity of customer loyalty to satisfaction due to the suppressor effect of perceived value. Moreover, the results show that
perceived value is the most important predictor of repeat purchase intention. From the perspective of management of online
group-buying, enhancing customer value should be given higher
priority.
6.3. Limitations
Although our ndings provide several useful implications for
theory and practice, the study still faces several limitations. First,
the ndings of this study presented only a period of customers
feelings toward an online group-buying website. Factors inuencing repeat purchase intention might be different from other
types of website (e.g., the customer-imitated business model
websites). Second, the data are cross-sectional. Prior literature
argues that relational quality such as trust and satisfaction will
develop as interactions increase over time (e.g., Hsu et al., 2011).
Further studies should use longitudinal perspective to test the
inuences of trust and satisfaction on repeat purchase intention.
In addition, according to Hsu et al. (2014), trust and satisfaction in online group-buying can be divided into different types,
such as trust in sellers, trust in websites, satisfaction with sellers, and trust in websites. Further studies should be done to
test how habit moderates their effects on repeat purchase intention and to explore their antecedents as well. Third, the data
of this study were collected from customers of a group-buying
website in Taiwan. Future research should test the ndings of
our study in different countries (e.g., US) to test the generalizability of this study. Finally, there are some factors, such
as network externality (e.g., number of shopping partners and
number of peers) and price discount, may affect customers
repeat purchase intention. Further studies should be done to
explore the antecedents of repeat purchase intention from various
standpoints.
6.4. Conclusions
This study developed and tested a model explaining the determinants of repeat purchase intention. By including ECM, website
quality, perceived value, satisfaction, and habit, this study examined their effects on repeat purchase intention simultaneously and
tested the impact of conrmation of expectations on these determinants of repeat purchase intention. To a certain degree, the
ndings of this study provide useful implications for e-commerce
practitioners.
55
CON1
CON2
CON3
PV1
PV2
PV3
PV4
WQ1
WQ2
WQ3
WQ4
WQ5
WQ6
WQ7
SAT1
SAT2
SAT3
TRT1
TRT2
TRT3
HAB1
HAB2
HAB3
RPI1
RPI2
RPI3
CON
PV
WQ
SAT
TRT
HAB
RPI
0.81
0.86
0.83
0.41
0.45
0.47
0.39
0.47
0.48
0.37
0.40
0.43
0.42
0.44
0.50
0.42
0.46
0.43
0.47
0.44
0.49
0.47
0.42
0.52
0.56
0.47
0.48
0.48
0.43
0.75
0.74
0.80
0.79
0.52
0.60
0.53
0.44
0.46
0.48
0.46
0.55
0.39
0.52
0.36
0.40
0.35
0.38
0.42
0.45
0.53
0.54
0.56
0.45
0.48
0.46
0.42
0.45
0.58
0.53
0.74
0.78
0.79
0.79
0.79
0.78
0.76
0.48
0.38
0.45
0.51
0.48
0.45
0.36
0.39
0.38
0.44
0.45
0.42
0.51
0.40
0.43
0.38
0.51
0.43
0.42
0.46
0.44
0.36
0.40
0.35
0.38
0.38
0.90
0.82
0.86
0.40
0.46
0.41
0.34
0.42
0.35
0.48
0.48
0.42
0.41
0.35
0.47
0.28
0.30
0.34
0.33
0.40
0.40
0.39
0.42
0.46
0.43
0.38
0.46
0.37
0.37
0.89
0.93
0.89
0.32
0.36
0.40
0.40
0.42
0.37
0.45
0.46
0.43
0.33
0.40
0.42
0.36
0.42
0.39
0.33
0.33
0.33
0.32
0.28
0.41
0.29
0.41
0.38
0.42
0.36
0.85
0.87
0.84
0.45
0.47
0.34
0.47
0.51
0.43
0.42
0.48
0.50
0.43
0.44
0.38
0.40
0.33
0.37
0.34
0.32
0.52
0.31
0.45
0.39
0.41
0.37
0.35
0.40
0.42
0.94
0.94
0.86
Notes: 1. Bold numbers indicate item loadings on the assigned constructs. 2. CON: conrmation; WQ; website quality; SAT: satisfaction; TRT: trust; HAB: habit; RPT: repeat
purchase intention.
Statistical comparison
of paths
T-value
T-value
0.541
0.061
0.070
6.071***
0.510
0.905
0.330
0.241
0.175
2.466*
3.022**
0.281**
5.283***
4.307***
3.005**
p < 0.05.
p < 0.01.
p < 0.001.
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