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