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Past Experience and the Intention to Future Purchase in E- Marketing Arena

Abstract:

Modeling consumer behavior in online shopping has been always critical for marketers and researchers. vividly, by omitting the social environment in which customers are interacting with each other , or on the other words the virtual market would result to lose of prospective consumers and thereby the probable collapse of the business in the future. Mainly, in this paper we are going to study the role of the past experience as the first and vital factor that affect the consumer behavior online on the post purchase behavior of them. Therefore, a reliable model will be designed and the hypnotized theory will be examined on the basis of the model.

1. Introduction

Primarily, There are some certain discrepancies between the traditional business and its late sister e-business. back in time ( 1994- 2000 ) , by initiating significant paces brought about by pioneers like Amazon.com  , a lot of flowers began to take advantage of the untapped opportunities that the new born internet can provide them with . However, majority of them failed in the very first of their tournament. Mainly, they failed as result of their misunderstanding of the nature of doing business through the internet; their strategy was based on the traditional methods of marketing and CRM neglecting the fact that in virtual internet marketing arena there is significant differences which should be considered and pinpointed. Simply, the higher number of the visitor of the company's website does not indicate to the higher level of purchase and revenue. However, what is in fact of the most importance and need to be monitored and improved is service quality in all the stages of the given transaction. Easy access to the internet, in addition to the easy navigation of information through websites, has empowered consumers to choose their true desired traded rather than to be chosen by flawlessly professional marketers. (Jeff Besos, In Specter, 2000).

when a need is triggered and motivation as a result of it, a potential e-consumer may look up to internet to satisfy the raised need; In that case several underlying elements may be raised, say , cost of the product , security of the transaction , service  , economic cost of time wasted in the course of searching the product through the web, and so on and so forth . Hence, the ultimate task of the e-business is not just to provide consumer with a good and on time service, but providing them with high quality service in all aspects of the transaction, form searching to delivery stage.

Consumer-experience is deemed to be one the pivotal factors that have a remarkable effect on all the stages of the consumer buying behavior. However, where E-commerce in concerned its vitality should be regarded as a top-priority factor attribute to massive amount information which is available online to the consumers ,thus their exponentially high speed in gaining experience directly and indirectly via other consumers experiences

2. Importance of study

The more exploration in the internet by the E-consumer, the more experience they gain and the more personalized standards emerges by them for satisfying their prospective need and want more efficiently and optimally in future. Thus, profitability and sustainability of the internet-based companies is not guaranteed unless by applying and establishing a sense of adjustability and flexibly in all the aspect of the e-business.

Interactivity is deemed to be a very critical trait of the new web based consumers that has defined as a factor that when it occurs the subject of the interaction changes as result of occurrence. It simply means that consumer's perception of value is constantly and exponentially soaring up in return to the value that they give in exchange of the same good / service that they would get from that product/service. Logically, rate of propagation of the either good or bad information though internet will be highly considerable and noteworthy based on the high rate of interaction as result of internet. Thus, the underestimation of the experience and expectation factors may result to the desolation of the company.

Modeling consumer behavior in online shopping has been always critical for marketers and researchers. vividly , by omitting the social environment in which customers are interacting with each other , or on the other words the virtual market would result to lose of prospective consumers and thereby the probable collapse of the business in the future .

3. Literature review

3.1 Technology Acceptance Model (TAM)

Davis et al (1989) explained TAM as a theoretical institution to elucidate and forecast the acceptance of information technology. Chiefly, this theory stemmed from Theory of Reasoned Action (TRA), which identifies tow factors of attitude and intention to perform, as motivators of social behavior (Fishbein & Ajzen, 1975) .Based on TRA, time and accessible context are two underlying factors that peoples intend to behave based on them.

Literally, Total Acceptance Model theorized by Davis et al (1989), explicate the way peripheral factors affect attitude and behavioral intention.

3.2 Social Presence

Principally, the theory of social presence is the underlying determinant in the social context and particularly it models the ability and capability of the computer-based communication (Short et al., 1976).

First and foremost, the SP refers to the extent to which a communicator feels the presence of its counterpart who has been supposed to take heed of his / her interaction. For instance, in face to face interaction the level of SP is higher in comparison with a communication which has been established through asocial network.

Dennis et al (1998) have argued that a given task in a particular social context would be performed better when there is a match between SP and the task being performed. Say, the complex and elaborated tasks which needs higher labor to be done will be performed better when the level of SP is equivalent of higher than perceived effort (Dennis, & Kinney, 1998).Thus it can be argued that there consumers would select their preferred media to perform a particular task, e.g. where a complex task is concerned they would choose a media with higher level of SP. as long as the purchasing in most of the cases is considered as a equivocal task the higher the SP relative to the task will result to a higher level of performance (Straub, & Karahanna, 1998; Carlson, & Davis,1998; Daft, & Lengel,1986).

In line with previous researches in the area, the interaction between the users as the probable customers in E-commerce or shopping and service offering websites has been manipulated to apply SP and model the behavior . Moon et al, (2001) maintained that users treat their computer as an social element in which every cues from it is responded likewise an individual.

3.3 Trust

Komiak et al (2006) in accord with Gefen and Straub (2003) have identified the element of the Trust as one the pivotal factors which highly affect the intention to purchase online. Through point of view of the sociologist it refers to the willingness of one individual to be vulnerable to the action of another person (Rousseau et al., 1998).

Mainly, the factor of Trust has been found by researchers as an element that noticeably reduce the consumer's doubt of reliability website's validity and dread of being ripped off (Jones, and Leonard, 2008).

First and foremost, in E-commerce arena the only user interface the connect the vendor with consumer is the website . with respect to the high level of complexity and whereby uncertainty in the online purchasing process, the ultimate task of the online marketers is to enhance the level of the trust by designing an appropriate webpage along with offering on time and good service quality which in turn will result to satisfied consumer and by which good word of mouth which increases the reliability of the website and trustworthiness (Gefen, and Straub 2003).

 

3.4 Past experience

Monsuwe et al. (2004) maintained that the past experience of the consumers has a direct impact on the intention to purchase online. The significance of this factor stemmed from the fact that experienced consumer behaves differently in comparison with new ones. Moreover the relationship between the past experience and intention to purchase again in a particular SP yet remained in shadow.

3.5 Intention to purchase

Literally, this factor as the dependent variable in this study has been studied by myriad of researchers as the main and the sole factor that determines the behavior of the consumers toward a specific product. Fishbein et al. (1975) who initially coined out Theory of Reasoned Action, applied there factors of cognition, intention and behavior to model the theory. Thereto it have been stated that subjective norms and attitude are the main antecedents of the intention and intention predict the behavior of the individual.

4. Hypnotized Model

In essence, the model comprises four predefined factors as to the Trust and Social Presence as mediating factors which explain the relationship between past experience and the intention to purchase online.

4.1 Past experience and social presence

McGrath et al.(1993) ascertained that the user's past experience in information communication technology determines theirs perception of it. Moreover, it has been argued by Yoo et al. (2001), that the past experience decreases the impact of complexity and defect of the system on the perceived SP and thereby higher performance.

H1.  There is a positive relationship between past experience and social presence (SP)

4.2 Past experience and trust

Regularly, a wholly satisfied expectation of the consumer will lead to the trust. Presumably, trust would be built when the expectation of the consumers are met through experiencing a particular buying process  (Komiak, and Benbasat, 2006).furthermore ,past experience of the users will constitute a sense of skillfulness and self-efficacy which in turn result to higher sense of trust in consumers.

H2.  There is positive relationship between past experience and trust.

 

4.3 Trust and SP

As mentioned before, the level of SP in direct encounters are higher in comparison with computer –mediated communication. Blau  (1964) argued that a low level of SP would contribute to a low level of trust which is one the critical concern of online marketers. a simple interpretation of this argument would be the fact that when users face bottlenecks in the way of a solid and reliable communication with the other party , the level of trust as a cognitive element will be diminished in their mind. Gefen et al. (2003) pointed out that when user experience a reasonable communication the factor of trust will be enhanced attributable to this solid and sensible communication.

H3. There is direct association between SP and trust.

Rice and Case (1983) underlined the psychological association between the overall social and personal perception of the medium and its perceived usefulness. Following to this theory and particularly by making a paradigm of TAM model, Gefen and Straub (2003) successfully established the relationship between trust and SP with intention to purchase. Actually, they have made a equivalency between SP and trust in on hand, and perceived ease of use and perceived usefulness on the other hand.

Yoh et al. (2003) outlined the significant effect of the past experience on the behavior of the customers in online shopping occasions. Subsequently, it has been theorized that there is strong relationship between past experience and intention to purchase online (Ranganathan, & Jha , 2007).

H4. There a positive association between past experience and intention to purchase online.

H5. There is a direct relationship between trust and intention to purchase online.

H6. There is a positive association between social presence and intention to purchase online.

5. Research methodology

5.1 Sample

The sample include 200 individual from various social status in which about 55% of them were well experienced in working with IT applications . Among them 60 5 were male and 40 % were female. The average age o the sample was 32.

 

 

5.2 Study design

Simply, the sample could be cut into two parts, experienced and inexperienced respondents. Technically, the data gathering method is a three step process. The first two levels are specified for the first group who are inexperienced individuals. During the first stage G1 are asked to conduct a purchase over the internet which in fact is a simulated online shopping. Particularly they were asked to buy a specific product from a predefined website. Subsequently, in the second stage they were asked to buy that product by means of their credit card but leave the transaction in the last stage which is confirmation. Finally, in the third stage, both group G1 and G2 were asked to answer a questionnaire which is included items measured with a five-point Lickert Scale.

5.3 Instrument

Intention to purchase online as the independent variable was measured by a questionnaire established by Gefen (2000) .likewise; Trust and SP were measured by items coined by Gefen (2000) and Straub (1994). Finally, Past Experience was determined by asking respondents whether they had or had not it.

6. Factor analysis

As long as the questionnaire is not neither designed nor tested by a sole researcher/s in a course of a sole explanatory research, a confirmatory factor analysis was found critical for the study. As shown in Table .2 The KMO value is 0.767, which is considered good. Bartlett's test of sphericity tests whether the correlation matrix is an identity matrix, if the diagonal values are 1 and the off diagonal values are 0. This condition simply means that the variables are totally independent of each other, and hence, the factor model is inappropriate. Identity matrix can be ruled out if the p-value of the test is less than 0.05. In this example, since the p-value is less than 0.001, we can proceed with factor analysis.

Table 1. KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.767

Bartlett's Test of Sphericity

Approx. Chi-Square

75.36

df

78

Sig.

.000

 

 

 

 

 

 

 

Statistically, by conduction a component factor analysis whose factor loadings were worked out as it can be seen in Table 3 and Table 2.

 

 

Table2. Total Variance Explained

 

Component

Initial Eigenvalues

 

Extraction Sums of Squared Loadings

 

Total

% of Variance

Cumulative %

Total

% of Variance

Cumulative %

1

5.20

8.96

11.74

5.20

8.96

11.74

2

1.26

8.64

12.64

1.26

8.64

12.64

3

1.17

22.74

52.04

1.17

22.74

52.04

4

.750

23.800

56.402

 

 

 

5

.667

24.269

58.671

 

 

 

6

.418

27.273

63.944

 

 

 

7

.357

29.029

68.974

 

 

 

8

.248

31.592

73.565

 

 

 

9

.856

33.825

77.391

 

 

 

10

.683

36.130

80.521

 

 

 

Table 3. Factor Loadings , Eigenvalue ,Variance (%) , Coronbach α

 

 

Items

Intention to purchase

Trust

Social presence

I would use my credit card to purchase from this site

.82

.25

.16

I would buy from other sites as well

.89

.31

.04

I might buy again from the site

.91

.29

.27

I would recommend buying from this site

.82

.32

.46

I felt trust in the purchasing process

.31

.85

.25

I felt trust in the site's efficiency

.21

.84

.15

I felt trust when providing personal details

.34

.79

.31

I felt other buyers' presence on the site

.5

.20

.91

I felt people presence behind this site

.18

.31

.85

I felt "availability" and efficient service

.25

.4

.73

Eigenvalue

5.2

1.26

1.17

Variance (%)

52.04

12.64

11.74

Coronbach α

.87

.78

.83

 

 

 

 

 

 

 

 

 

 

 

 

As shown in the Table .3 all the factor loading are above value 0.5 , indicating that all the elements are significant (Hair, Anderson, Tatham & Black, 1995).all the Coronbach alpha values are above the standard value of 0.7 , that denotes to the internal consistency of all the elements which measuring their relative factor. Furthermore, all the explained variances values as another measure of internal consistency along with Coronbach Algh are above 0.7 which again indicate to a well consistency of the elements relative to their corresponding factor.

As it can be seen in Table.3  the rage of the mean for all the variables is between 1.41 and 3.37 . pertaining to the Likert Scale which has been applied in this study it can be point out that all the respondents were  to some extent agree and rather positive toward evaluating factors .

 

Table 4 . Descriptive Statistics

 

N

Mean

Std. Deviation

Past  Experience

80

1.41

.49

Social Presence

80

2.90

1.12

Trust

Intension to Purchase

80

80

3.32

3.37

1.19

1.14

Valid N (leastwise)

78

78

78

 

Similarly, other indices for the study as shown in Table .4 satisfied its relative condition. In essence, according the results of the model fitness the model can be assumed fitted and ready to be used to analyze the examining hypothesis.

7. Analysis

Pearson tests of correlation along with a regression analysis have been conducted and results are demonstrated in Table. 5 and Table 6. Contrasting each value with its corresponding P-value it can be interpreted that all the variables are associated with each other.

 

Table 5. Correlations

 

 

Past  Experience

Social Presence

Trust

Intention to Purchase

 

Past  Experience

Pearson Correlation

1

.27**

.26

.49

 

Sig. (2-tailed)

 

.000

.386

.744

 

N

78

78

78

78

 

Social Presence

Pearson Correlation

.27**

1

.46

.49

 

Sig. (2-tailed)

.000

 

.364

.663

 

N

78

80

80

80

 

Trust

Pearson Correlation

.26

.46

1

.58**

 

Sig. (2-tailed)

.386

.364

 

.004

 

N

78

80

80

80

 

Intention to Purchase

Pearson Correlation

.49

.49

.58**

1

 

Sig. (2-tailed)

.744

.663

.004

 

 

N

78

80

80

80

 

**. Correlation is significant at the 0.01 level (2-tailed).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 6. Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

95.0% Confidence Interval for B

Collinearity Statistics

B

Std. Error

Beta

Lower Bound

Upper Bound

Tolerance

VIF

1

(Constant)

2.53

.39

 

6.4

.000

.185

2.85

 

 

Past Experience

.70

.16

.30

4.46

.000

.42

.88

.784

1.275

Social Presence

.34

.7

.36

4.67

.000

.22

.45

.880

1.136

Trust

.26

.8

.25

3.28

.001

.18

.54

.754

1.325

a. Dependent Variable: IP

 

The highest VIF value is 1.325, which is less than 5. Thus, there is not the problem of  multicollinearity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All the B values are significant at .001 level .

 

According to then results there is a significant relationship between past purchase experience and intention to purchase in the future (0.30, p, 0.01). Trust (0.36, p, 0.01) and SP (0.26, p, 0.01) were entered into the regression and showed a significant correlation and contribution to the total explained variance.

Initially, the circumstances for a significant relationship between past purchasing experience and intention to purchase in the future were satisfied, confirming H4. Likewise, condition for a significant association between past purchasing experience and SP was satisfied confirming H2. Afterward, condition requiring a significant relationship between SP and the intention to purchase in the future, and a decrease from 0.49 to 0.38 ( p , 0.01), in the relationship between past purchasing experience and intention to purchase in the future would indicate that there was fractional arbitration of SP between past purchasing experience and intention to purchase in the future .

According to results there is a significant relationship between past purchasing experience and intention to purchase in the future was met (0.48, p, 0.01), confirming H4. Likewise, a significant relationship between past purchasing experience and trust was satisfied (0.26, p, 0.01), confirming H1. The third condition requiring a significant relationship between trust and intention to purchase in the future (0.48, p, 0.01), and a decrease from 0.48 to 0.36 (p, 0.01), in the relationship between past purchasing experience and intention to purchase in the future indicates a partial mediation of trust between past purchasing experience and intention to purchase in the future.

 

8. Conclusion

The sensitivity of SP and trust were selected in the as two chief aspects of the social context. Both have been revealed to be essential in habitual shopping. Since SP is lower in virtual worlds, and online trust has been shown to be problematic, it was important to retrace SP and trusts in the virtual world.All hypotheses were established. In the regression model it has been identified 47.7 percent of the variance explained by the direct effects of SP and trust.

Finally, it has been found that the subgroup with past purchasing experience was significantly different from the no-past experience subgroup, indicating that purchasing experience on the internet has a substantial impact on future shopping. Companies confront gigantic challenges in alluring customers to shop on their sites. However, in active markets more must be learned about customer purchasing loyalty to the same sites.

 

 

References

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Fishbein, M. & Ajzen, I. (1975), Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research. Addsion-Wesley, reading, MA.

 

Short, J.E., Williams, E. and Christie, B. (1976), The Social Psychology of Telecommunications,

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