The impact of Online store personality on

Customer Trust and Purchase Intention

2

AGENDA

Introduction

Literature Review

Methodology

Results

Implication

Limitation

INTRODUCTION

In 2012, the volume of Chinese online shopping

market size reached 1304 billion, increased

68.6% than 2011.

The Sum of C2C transactions on Taobao

= 90% of Chinese C2C market

= 63.3% of Chinese online shopping market

= 825.3 billion

(Statistics resource: iResearch) 3

INTRODUCTION

By December 2012, the number of C2C online

stores was 13.65 million, decreased 15.7% year on year. On average, 10 thousands C2C stores shut down per day.

Competition for online vendors is much fiercer.

In order to survive, winning customer trust and arousing purchase intention become the keys to success of online stores.

(Statistics recourse:《 2012年度中國網絡零售市場數據監測報告》 ) 4

5

Previous researches revealed that store personality plays a critical role in customer behaviors.

In the network age, the concept and measurement of store personality needs to be adapted into the new context (Amit Poddar, Naveen Donthu and Yujie Wei, 2009).

Actually, few research has adapted store personality into the new context and examined direct following relationships:

Online store personality

Customer Trust

Purchase Intention

Website Quality

This study will fill the gap.

INTRODUCTION

6

STAGE 1

STAGE 2

Website Quality as a MEDIATOR (path analysis)

Enthusiasm

Sophistication

Genuineness

Unpleasantness

Customer Trust

Purchase Intention

Online Store Personality

IV1

IV2

IV3

IV4

DV1

DV2

RESEARCH FRAMEWORK DESIGN

7

DEFINITION: How customers attribute human characteristics to an online store.

Personality of a website is built through its interactions with users (Breakenrige, 2001)

Online store personality Store personality Brand personality (D'Astous and Levesque,2003) (Aakar,1997)

Enthusiasm Sophistication Genuineness Solidity Unpleasantness

(Amit Poddar, Naveen Donthu and Yujie Wei, 2009)

Enthusiasm Sophistication Genuineness Unpleasantness

LITERATURE REVIEWOnline store Personality (IVs)

8

DEFINITION: Willingness to rely on the seller and take action in circumstances where such action makes the consumer vulnerable to the seller (Jarvenpaa et al, 1999).

Trust is essential in forming transactional relationships (Reichheld, 1994).

Without directly observing the product and face-to-face talking with the shop owner (Grazioli and Jarvenpaa, 2000), online customers are exposed to more uncertainties and risks.

Website characteristics Online shopping experienceEntertainment (Bart, Shankar, Sultan, and Urban, 2005)

Online Store Personality

LITERATURE REVIEWCustomer Trust (DV)

Customer Trust

(Chiu et al,2008)

HYPOTHESIS (a) & RQ1

H1a: There will be a positive relationship between enthusiasm and customer trust.

H2a: There will be a positive relationship between sophistication and customer trust.

H3a: There will be a positive relationship between genuineness and customer trust.

H4a: There will be a negative relationship between unpleasantness and customer trust.

RQ1:Which dimension predicts customer trust most?

9

10

LITERATURE REVIEW

DEFINITION: the willingness or possibility of a customer to become involved in online transactions (Pavlou,

2003).

Information Success Model: Intention to use Actual use

Intention to use (Purchase Intention) is affected by quality of system, information and service(DeLone and McLean, 2003), which at the same time lead to the establishment of online store personality.

Purchase Intention (DV)

11

HYPOTHESIS (b) & RQ2

H1b: There will be a positive relationship between enthusiasm and purchase intention.

H2b: There will be a positive relationship between sophistication and purchase intention.

H3b: There will be a positive relationship between genuineness and purchase intention.

H4b: There will be a negative relationship between unpleasantness and purchase.

RQ2: Which dimension predicts purchase intention most?

WEBSITE QUALITYWebsite Quality (Mediator)

12

DEFINITION: Website quality is the perceived overall quality of a Website according to the customer‘s viewpoint. (Poddar, Donthu and Wei ,2009).

Website characteristics are determinants of customer trust. (Chao-Min Chiu, Chen-Chi Chang, Hsiang-Lan Cheng, and Yu-Hui Fang, 2008)

Site information quality and a good interface design enhance the consumer trust. (Fung and Lee ,1999)

Website Personality Website Quality

Customer Trust

13

H5:The impact of Website personality on Customer Trust is mediated by Website quality.

HYPOTHESIS 5

WEBSITE QUALITYWebsite Quality (Mediator)

14

Website Quality acts as a mediator between Website personality and purchase intention. (Poddar, Donthu and Wei, 2009)

Website quality is related to 12 core dimensions(Poddar, Donthu and Wei ,2009)

informational fit-to-task; tailored communications; trust; response time; ease of understanding; intuitive operations; visual appeal; innovativeness; emotional appeal; consistent image; on-line completeness; and relative advantage.

informational fit-to-task; tailored communications; trust; response time; ease of understanding; intuitive operations; visual appeal; innovativeness; emotional appeal; consistent image; on-line completeness; and relative advantage.

15

H6:The impact of Website personality on Purchase Intention is mediated by Website quality.

HYPOTHESIS 6

16

1.Each respondent was asked to experience one of three stores, 100+ respondents for each store.

2.Answer questions

METHODOLOGYProcedure

sojump

Creative products

*3

17

METHODOLOGY

Convenience + Snowball sampling

Sampling

327 valid respondents

200 female

127 male

18

METHODOLOGYIV

IV Questions

α Mean SD

Enthusiasm 4 .75 2.88 0.58

Sophistication 4 .85 2.77 0.64

Genuineness 4 .87 2.97 0.52

Unpleasantness 4 .86 1.88 0.60i.e.: This store is considered to be friendly. congenial enthusiasticlively (1=strongly disagree, 4=strongly agree)

i.e.: This store is considered to be annoying. irritating outmodedsuperficiali.e.: This store is considered to be conscientious. genuine reliablesincerei.e.: This store is considered to be elegant. high classstylishchic

19

METHODOLOGYDV

DV Questions α Mean SD

Customer Trust 3 .76 2.88 0.56

Purchase Intention 1 N/A 2.99 0.72

Product Risk(Forsythe and Shi, 2003)

i.e.: I believe the product information on the website is true.(1=strongly disagree,4=strongly agree)

i.e.: If the price factor is ruled out: I am willing to purchase in this store (once I need the product).(1-4)

20

METHODOLOGYMediator

Mediator Questions

α Mean SD

Website Quality 11 .91 2.88 0.53

i.e.: I think the website provides accurate, updated and appropriate information.(1=strongly disagree, 4=strongly agree)Information Quality Ease of use and understanding Innovativeness Visual Appeal Emotional Appeal(Poddar, Donthu and Wei, 2009)

21

RESULTS

89.6%

Purchased creative products

73

Young, educated

18-24(87%)Master(40%)Bachelor(56%)

41

E-Shop 2~3times a month

187 131

22

Customer Trust α

Model Beta Sig.Enthusiasm 0.16** .001Sophistication 0.26*** .000Genuiness 0.43*** .000Unpleasantness -0.08# .058Gender 0.07 .070Age 0.01 .688Education -0.04 .222

adjusted R Square .578

RESULTSStage1： Linear Regression

H1a supported

H2a supportedH3a supportedH4a partially supported

RQ1:Genuiness predicts customer trust most.

*p<0.05, **p<0.01, ***p<0.001, #p<0.06

23

Purchase Intention αModel Beta Sig. Conclusion

Enthusiasm 0.16** .006

Sophistication 0.34*** .000

Genuiness 0.25*** .000

Unpleasantness -0.55 .226

Gender 0.13** .002

Age -0.30 .473

Education -0.44 .292

adjusted R Square .430

RESULTSStage1： Linear Regression

H1b supportedH2b supported

H3b supported

H4b rejected

RQ2:Genuiness predicts customer trust most.

*p<0.05, **p<0.01, ***p<0.001, #p<0.06

24

Stage2： Path Analysis(Pearson Correlation)

RESULTS

Mediator

Mediator

25

Stage2： Path Analysis(Pearson Correlation)

RESULTS

Mediator

Mediator

26

IMPLICATION

DV1 Customer Trust and DV2 Purchase Intention is significantly related.

Website Quality is the mediator between each set of IV and DV.

To improve customer trust, enthusiasm character of an E-shop requires most attention.

To boost purchase intention, genuineness character of an E-shop requires most attention.

27

LIMITATION

Sampling size:327

Nonprobability sampling

Limited Websites: 3 stores

Only for creative products

Translation Accuracy

Interaction Effect

Website Quality is the mediator between each

set of IV and DV

28

HU Qingxin Zhang Shurong TSANG Lai KaJiang An Wu Tianyi Li Jun