Contoh Jurnal Internasional Gratis | Makalah Dan Jurnal Gratis Ae
AN EMPIRICAL STUDY ON THE RELATIONSHIP
BETWEEN CUSTOMER VALUE AND REPURCHASE
INTENTION IN KOREAN INTERNET SHOPPING MALLS
,
.
,
JAEHUNJOO
Dongguk University
South Korea
ABSTRACT
It is important to analyze the relationship between customer
values and business value in order to provide a guideline of
successful e-business. The purpose of this paper is to answer
the following questions. First, what are key components of
customer value in e-business? Second, what difference exists
in the expectation level and current level of customer value in
e-business? Finally, what influences the relationship between
customer value and business value? Data collected from 615
respondents who made purchases through Internet shopping
mails were used to test a research model. Three managerial
implications were derived from the analysis and further studies
were suggested.
Keywords: e-business, customer value, business value,
electronic commerce, trust, Internet shopping mall,
INTRODUCTION
Customer value is a source of competitive advantage for
business firms (23,34,50.53). Various studies related to customer
value have been conducted in traditional offline business contexts
(11, 26. 30. 44. 45. 46. 48, 49, 50). However, a few studies have
been conducted in the e-business context (3. 7. 24. 30). Yahoo
offered services on the Internet in 1994. Amazon.com and eBay
were founded in 1995. Interpark of Korea opened an Internet
shopping mall in 1996. Many other companies attempted ebusiness throughout the late 199O's resulting in what is now
known as the dot com bubble. Since the dot com crisis, pure ebusinesses such as Internet shopping malls and portal sites have
begun to mark steady growth.
Customer-centered management is a critical success factor
of e-business including pure online firms. Thus, it is necessary
to provide guidelines for e-business through a study on the
components of customer value and the relationship between
customer value and business value. Although there have been
many studies on the relationship between information technology
investment and its organizational performance or business value
(32). there is no research directly dealing with the relationship
between customer value and business value in e-business. Thus,
the purpose of this paper is to present a list of customer value
factors, to analyze the difference between the expectation levei
and current level of customer value, and to identify the influence
of customer value on business value.
In our empirical study, we confine the scope of e-business
to Internet shopping malls including Internet auctions, and
employ repurchase intention as a surrogate of business value.
Generally, business value is assessed by financial measures such
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as revenues and ROA, or non-financial measures (4. 32. 38, 54).
The repurchase intention is believed related to purchase behavior,
which affects revenues.
CUSTOMER VALUE OF E-BUSINESS
Literature Review
In general, customer value is perceived by customer as a tradeoff between what customers receive and what they sacrifice (23,
50.53). In this paper, we simply define customer value as benefits
perceived by customers of e-business.
To derive types of customer value in e-business, we explored
the following three research areas: customer value of traditional
offline businesses; service quality; and the technology acceptance
model (TAM). Table I shows a summary of customer value
components found in the previous research. Customer value in
this set of literature is defined as value perceived by customers.
In a different stream. Saeed et al. (26) analyzed the relationship
among electronic commerce competence, firm performance,
and customer value from the perspective of the business. They
described a customer service life cycle in electronic commerce
with four stages: requirements, acquisition, ownership, and
retirement. The study identified customer value as drivers which
are functionalities provided by Web sites in each stage.
Service quality is particularly important to customers of pure ebusiness (21. 25.35,43). Therefore, Table 2 summarizes previous
studies on service quality factors which can be considered as
customer value components.
TAM examined the mediating role of perceived ease of use
and perceived usefulness in relation to systems characteristics
and the probability of system use. Many researchers concluded
that there were positive relationships between perceived ea.se
of use. perceived usefulness, repurchase intention, and actual
behavior (10. 12, 28, 31, 33). Ease of use and usefulness should
be reflected to customer value because they include value
components perceived by customers.
Scheme of Customer Value
We propose seven customer value factors based on literature
reviews and characteristics of e-business: economy, convenience,
speed, personalization, community, emotion, and trust. Table
3 summarizes these factors with an operational definition and
supporting references. As described in the literature review,
economy, convenience, speed, emotion, and trust are important
factors of customer value in both traditional offline business and
e-business.
Journal of Computer Information Systems
53
TABLE 1
Previous Research for Customer Value
Reference
Summary of customer value components
(11)
In tiiis study, relationships between customer-perceived value, customer satisfaction, and behavioral outcomes were
empirically tested. Customer perceived value is measured by items such as reasonable quality, reasonable price, and
superior net-value.
(26)
Thi.s study identified 13 key drivers of customer perceived value in three categories: product related values (alternative
solutions, product quaiity, product customization, and price), service related values (responsiveness, flexibility,
reliability, and technical competence), and relationship related values (image, trust, solidarity, time/effort/energy, and
conflict).
(44)
This study described four distinct value dimensions: emotional value, social value (enhancement of social seifconcept), functional value (price/value for money), and functional value (f)erformance/quaUty).
(45)
Customer perceived value is a function of quality and price, in which quality is composed of product-related
components, service-related components, and promotion-related components.
(48. 49)
These studies suggested a customer-centric value chain model and customer value criteria as follows: security,
performance, aesthetics, convenience, economy, and reliability.
(3)
This study presented four different ways in which customer value can be created in electronic grocery shopping:
competitive prices, a broad and/or specialized assortment, superior shopping convenience, and superior customer
service.
(7)
Key precursorsof perceived customer value in a B2C e-commerce setting are valence of on-line shopping experience,
perceived product quality, perceived risk, and product price.
(24)
This study suggested a useful comprehensive list of customer value components in Intemet commerce: quality, cost,
delivery time, convenience, time reduction, privacy, shopping enjoyment, safety, and environment impact.
(30)
In this study, an experiential value reflecting the benefits derived from perceptions of playfulness, aesthetics, customer
ROI, and service excellence was developed and tested in an Intemet and catalog shopping contest.
TABLE 2
Previous Studies for Service Quaiity
Reference
Service quality factors
(35)
This study proposes five dimensions of service quality (SERVQUAL) including reliability, assurance, tangibility.
empathy, and responsiveness.
(21)
This study extends the SERVQUAL dimensions to include factors important to Intemet shopping: convenience,
security, and entertainment.
Customer value derived from personalization and community
services is characteristic of e-business. Personalized services
enabled by personalization technologies such as contentbased recommendations and collaborative filtering (1) satisfy
customer's needs in the tailored patterns which are infeasible
in the traditional offline business. Virtual communities offered
by e-business or business blogs facilitate communication among
customers as well as between businesses and customers, enable
customers to share and acquire knowledge and experiences (51),
and offer the opportunity to reduce common risks faced by them.
Hoibrook (19) proposed a typology of experiential value in
the retail environment. He suggested a value landscape divided
into four quadrants framed by intrinsic/extrinsic sources of
value on one axis and active/reactive value on the other (19). In
order to apply the typology of experiential value to the catalog
and Internet shopping. Mathwick et al, (30) labeled these four
dimensions of experiential value: consumer return on investment,
service excellence, playfulness, and aesthetic appeal.
However, the typology of experiential value has limitations and
54
does not fully describe customer value of e- business as described
in Table 3. As .shown in Figure I. the seven customer value factors
we propose are classified by two dimensions: value-orientation
and interactivity. Customers perceive value from intrinsic or
extrinsic motivation (19. 30. 40). For example, economy, speed,
and convenience refiect extrinsic values while emotion reflects
intrinsic values. Interactivity is the degree to which two or more
parties communicate and interact with each other: in particular,
the degree into which customers actively participate. Virtual
communities of e-business provide the opportunity to share
and acquire more knowledge and experiences when customers
are proactive than when they are reactive. On the other hand,
customer value through economy, speed, convenience, and trust
is relatively constant regardless of the degree of interactivity.
RESEARCH MODEL AND HYPOTHESES
This paper aims to answer three research questions. First,
what are the constructs of customer value in e-business? Second,
Journal of Computer Information Systems
Faii 2007
TABLE 3
Constructs of Customer Value, Operational Definition, and References
Constructs
(customer value factors)
Operational definition
References
Economy
Economic value perceived by customer through cost reductions or lower
price than average market price.
(3, 24. 26. 30,
34.44,45,49)
Convenience
Value derived from providing convenient information, commodities, and
services for customer.
(3. 24. 49)
The value derived from timely responses to customer needs such as prompt
transactions, order fulfillment, and feedback.
(24)
The value derived from offerings of pnxlucts. service, and transaction
settings in a customized or personalized way.
(5. 14.29,46)
The value derived from a virtual comniunity in which customers share and
acquire knowledge and experiences, and communicate with the others
(2,5. 15.37)
Emotion
The value derived from offerings of entertainment, pleasure, enjoyment,
and playfulness.
(24.30,33,44,
47. 49)
Trust
The value derived from offerings of secure and reliable transactions, quality
assurance, security service, and privacy protection. The value derived from
the ability to flexibly meet the change of customer needs or unforeseen needs.
and to minimize customer's complaints.
(24, 26, 27, 34, 49)
Speed
Personalization
Community
E}- 10
183
30
>=50
7
1
Others
57
9
615
100
615
100
615
100
Age
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Table 5
Scale Properties
Constmcts
Measure items
(No. of Item)
Factor loadings
expectation
level
Service
level
Low price (Q!)
.856
.837
Low transaction cost (Q2)
.814
.820
Convenient interface (Q3)
.682
.609
Convenient order and
tracking procedures (Q4)
.777
.70!
Reduction of shopping time (Q5)
.732
.667
Quick service (Q6)
.521
.648
Updated information (Q7)
.757
.567
Customized service (Q8)
.785
.815
expectation
level
Service
level
expectation
ievel
Service
level
1.704
1.726
.7865
.6943
1.507
1.367
.5803
.4944
1.608
1.746
.6337
.5845
1.660
1.787
.7792
.7663
1.823
1.726
.7006
.6513
1.846
1.945
.6729
.6690
4.947
3.492
.9122
.8445
Economy
Convenience
Speed
Personalization
Community
Emotion
Tmst
Personalized transaction
environment (Q9)
.820
.817
Sharing of information and
knowledge (QIO)
.648
.505
Proactive participation (QI 1)
.809
.842
Decrease of common risks (Q12)
.680
.706
Enjoyment and playfulness (Q13)
.768
.773
Events (Q14)
.824
.821
Simple and clear Web design (Q15)
.531
.529
Tmst in the transaction (Q16)
.733
.622
Quality assurance (Q17)
.816
.789
Secure service (Q18)
.795
.670
Brand (Q19)
.688
.568
Reliable terms and policy (Q20)
.693
.618
Reliable feedback (Q21)
.833
.766
Reliable resolution (Q22)
.742
.698
Consistent repurcbase
Repurchase
intention (Q23)
intention
Recommendation (Q24)
Reliability
coefficients
(Cronbach's alpha)
Eigenvalue
.808
1.856
.782
* Method for factor extraction: principal component. Rotation method: Kaiser normalized Varimax
58
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.7281
and emotion value when dealing with limited
resources.
The second implication refers to the second
research question, the gap between the expectation
level and the current service level of customer
value. The largest gap was found in tmst value;
implying that a critical successful factor of intemet
shopping malls is improvements of inist value.
Finally, we derive an implication from the last
research question regarding relationships between
customer value and business value. Intemet
shopping malls can improve business value,
measured by repurchase intention, in two ways.
The first is to implement a strategy offering
customer value in economy and tmst. SO of Figure
4 corresponds to the strategy improving business
value by intensifying economy and tmst value
themselves for customer. To simplify customer
value factors. Economy, speed, and convenience
having relatively higher extrinsic value are grouped
into productivity-oriented value while community,
personalization, and emotion requiring relatively
Extrinsic
c
o
Figure 3. Stmctural Equation Model
s
IMPLICATIONS AND CONCLUSION
O
Implications
75
The results of this empirical study suggest three managerial
implications. The first implication comes from the first research
question, constmcts of customer value in e-business. First of
all, customers of e-business, in particular Intemet shopping
malls, expect higher utilitarian value such as economy, speed,
convenience, and tmst. This implies that Intemet shopping malls
need to focus on competence or dynamic capabilities (38, 52)
enabling more improvements of utilitarian value tban community
Intrinsic
Interactivity
Figure 4. Strategies for Improving Business Value through Customer
Value Groups
Table 6
Results of Hypotheses Tests for Analyzing Differences
Mean (SD)
Hypotheses: Constmcts
t-test
Expectation level
Service level
t statistics
P value
Hypotheses result
HI-1: economy
3.780(.734)
3.497(.67O)
8.491
.000
Accepted
Hl'2: convenience
3.594(670)
3.389(.62I)
6.602
.000
Accepted
HI-3: speed
3.697(.633)
3.427(.6O1)
9.477
.000
Accepted
HI-4: personalization
3.480(.722)
3.I81(.689)
8.521
.000
Accepted
Hl-5: community
3.437(.673)
3.248(.6O8)
6.561
.000
Accepted
Hl-6: emotion
3.469(.653)
3.297(.6O9)
5.835
.000
Accepted
HI-7: Tmst
3.539(.794)
3.157(.596)
12,111
.000
Accepted
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Journal of Computer Information Systems
59
higher interactivity are grouped into pleasure-oriented value as
shown in Figure 4.
The other is to offer tmst value by enhancing productivityoriented value group and pleasure-oriented value group. SI and
S2 of Figure 4 refer to the strategy improving business value by
increasing trust value through productivity-oriented and pleasureoriented value groups. The essence of discussion addresses how
firm.s increase customer trust value through productivity-oriented
and pleasure-oriented value. Many successful Intemet shopping
malls provide differentiated programs such as incentive and
premium programs including point rewards and cumulative
discounts as well as quick and convenient services. The shopping
malls also offer pleasure and optimum experience for customers
by opening events, renewing web site, supporting personalized
requirements, etc. The strong linkage between trust value and other
customer value comes from regular, consistent, and continuou.s
execution of various programs for enhancing productivityoriented and pleasure-oriented value groups. Sustainable
improvements of trust value Including reliable transaction, quality
assurance, and brand reliability through productivity-oriented and
pleasure-oriented value require firm's dynamic capabilities (51).
Wheeler (52) proposed an applied dynamic capabilities theory
for measuring a firm's ability to create customer value through
the business use of digital networks. The dynamic capabilities
refer to the ability of a firm to achieve new fonns of competitive
advantage through reconfiguration of organizational resources to
achieve congruence with the changing business environment (51).
This study implies that firms doing e-business need to possess not
only abilities to create customer value providing productivityoriented and pleasure-oriented benefits to customers, but also
adoption and absorptive capabilities of innovative technologies
such as mobile and ubiquitous networks to support or align with
customer value-creating programs. Both capabilities enable ebusiness to create ongoing customer value linked business value.
Limitations
This paper indicates the following limitations. First limitation
in this study is recognized in terms of generalizability. As we
confined the scope of our empirical study to Intemet shopping
malls including Intemet auction and data were collected from
Korean .shoppers, the results of this study didn't reflect the
difference of culture and nationality as anonymous reviewers
noted. Second, the relationship between customer value and
business value was not directly measured t)ecause repurchase
intention was employed a.s a surrogate of business value. A
comparison study on value from a business perspective (4, 38)
would be a new research agenda for overcoming this limitation.
Finally, the study contains the limitation associated with goodness
of fit of structural equation model since AGFI and TLI values
didn't indicate satisfactory levels.
CONCLUSION
This paper developed and empirically tested a model representing
the relationships between customer value factors and repurchase
intentions, as well as the difference between the expectation
of customer value and current service level. The findings here
suggested that the service level of customer value was significantly
lower than customer expectation, and customer value factors
positively affect the repurchase intentions. Specifically, economy
and trust value factors directly affect the repurchase intentions
60
while otber factors such as convenience, speed, personalization,
community, and emotion value indirectly affect it through trust.
Our research model and customer value classification scheme
contribute to the theory of e-business still t>eing in the early
growth stage. Three managerial implications derived from our
empirical study contribute to planning and organizing successful
strategies for Intemet shopping malls.
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APPENDIX 1 — Questionnaire Items
No. of
item
Expectation level
Service level
Please indicate tbe level of value you expect wben
using Intemet sbopping malls for eacb of tbe items
t>elow.
Please indicate (or evaluate) tbe level of value you feel
received from your purcbase experiences with Intemet
shopping malls.
1
1
Very
Low
Qi
1
2
1
3
Neutral
1
4
1
5
Very
High
1
5
Very
High
1
4
1
3
Neutral
1
2
1
1
Very
Low
1
5
1
4
1
3
1
2
1
1
Lower price tban average market price.
1
1
1
1
2
1
3
1
4
5
Q2
Reduced transaction cost.
Q3
Convenient user interface of website.
Q4
Convenient searcb and order tracking.
Q5
Reduced shopping time.
Q6
Quick customer services such as order fulfillment and delivery.
Q7
Timely and updated infonnation.
Q8
Customized service.
Q9
Personalized transaction environment in the website.
QIO
Information and knowledge sharing.
Qll
Participation in website communities.
Q12
Reduced transaction risks through cooperation with otber customers in communities.
QI3
Enjoyment and playfulness experienced through Intemet sbopping malls.
QI4
Excitement and enjoyment experienced through events of the website.
QI5
Web design making me feel good and friendly.
QI6
Reliable transactions.
Q17
Quality assurance.
Q18
Privacy protection through security services.
Q19
Brand reliability.
Q20
Reliable responsiveness to routine user requirements.
Q21
Reliable feedback to complaints and questions.
Q22
Reliable responsiveness to ad hoc user requirements (not specified in terms and policy).
Please indicate your intentions based on your
purcbase experiences in Intemet sbopping malls.
1
5
Strongly
agree
1
4
1
3
Neutral
1
2
1
1
Strongly
disagree
Q23
1 will continue to purcbase items tbrough
Intemet sbopping malls.
1
5
1
4
1
3
1
2
1
1
Q24
I would recommend Intemet sbopping malls
to friends orotbers.
1
5
1
4
1
3
1
2
1
1
62
Journal of Computer Information Systems
FaU 2007
BETWEEN CUSTOMER VALUE AND REPURCHASE
INTENTION IN KOREAN INTERNET SHOPPING MALLS
,
.
,
JAEHUNJOO
Dongguk University
South Korea
ABSTRACT
It is important to analyze the relationship between customer
values and business value in order to provide a guideline of
successful e-business. The purpose of this paper is to answer
the following questions. First, what are key components of
customer value in e-business? Second, what difference exists
in the expectation level and current level of customer value in
e-business? Finally, what influences the relationship between
customer value and business value? Data collected from 615
respondents who made purchases through Internet shopping
mails were used to test a research model. Three managerial
implications were derived from the analysis and further studies
were suggested.
Keywords: e-business, customer value, business value,
electronic commerce, trust, Internet shopping mall,
INTRODUCTION
Customer value is a source of competitive advantage for
business firms (23,34,50.53). Various studies related to customer
value have been conducted in traditional offline business contexts
(11, 26. 30. 44. 45. 46. 48, 49, 50). However, a few studies have
been conducted in the e-business context (3. 7. 24. 30). Yahoo
offered services on the Internet in 1994. Amazon.com and eBay
were founded in 1995. Interpark of Korea opened an Internet
shopping mall in 1996. Many other companies attempted ebusiness throughout the late 199O's resulting in what is now
known as the dot com bubble. Since the dot com crisis, pure ebusinesses such as Internet shopping malls and portal sites have
begun to mark steady growth.
Customer-centered management is a critical success factor
of e-business including pure online firms. Thus, it is necessary
to provide guidelines for e-business through a study on the
components of customer value and the relationship between
customer value and business value. Although there have been
many studies on the relationship between information technology
investment and its organizational performance or business value
(32). there is no research directly dealing with the relationship
between customer value and business value in e-business. Thus,
the purpose of this paper is to present a list of customer value
factors, to analyze the difference between the expectation levei
and current level of customer value, and to identify the influence
of customer value on business value.
In our empirical study, we confine the scope of e-business
to Internet shopping malls including Internet auctions, and
employ repurchase intention as a surrogate of business value.
Generally, business value is assessed by financial measures such
Fall 2007
'
'
•
as revenues and ROA, or non-financial measures (4. 32. 38, 54).
The repurchase intention is believed related to purchase behavior,
which affects revenues.
CUSTOMER VALUE OF E-BUSINESS
Literature Review
In general, customer value is perceived by customer as a tradeoff between what customers receive and what they sacrifice (23,
50.53). In this paper, we simply define customer value as benefits
perceived by customers of e-business.
To derive types of customer value in e-business, we explored
the following three research areas: customer value of traditional
offline businesses; service quality; and the technology acceptance
model (TAM). Table I shows a summary of customer value
components found in the previous research. Customer value in
this set of literature is defined as value perceived by customers.
In a different stream. Saeed et al. (26) analyzed the relationship
among electronic commerce competence, firm performance,
and customer value from the perspective of the business. They
described a customer service life cycle in electronic commerce
with four stages: requirements, acquisition, ownership, and
retirement. The study identified customer value as drivers which
are functionalities provided by Web sites in each stage.
Service quality is particularly important to customers of pure ebusiness (21. 25.35,43). Therefore, Table 2 summarizes previous
studies on service quality factors which can be considered as
customer value components.
TAM examined the mediating role of perceived ease of use
and perceived usefulness in relation to systems characteristics
and the probability of system use. Many researchers concluded
that there were positive relationships between perceived ea.se
of use. perceived usefulness, repurchase intention, and actual
behavior (10. 12, 28, 31, 33). Ease of use and usefulness should
be reflected to customer value because they include value
components perceived by customers.
Scheme of Customer Value
We propose seven customer value factors based on literature
reviews and characteristics of e-business: economy, convenience,
speed, personalization, community, emotion, and trust. Table
3 summarizes these factors with an operational definition and
supporting references. As described in the literature review,
economy, convenience, speed, emotion, and trust are important
factors of customer value in both traditional offline business and
e-business.
Journal of Computer Information Systems
53
TABLE 1
Previous Research for Customer Value
Reference
Summary of customer value components
(11)
In tiiis study, relationships between customer-perceived value, customer satisfaction, and behavioral outcomes were
empirically tested. Customer perceived value is measured by items such as reasonable quality, reasonable price, and
superior net-value.
(26)
Thi.s study identified 13 key drivers of customer perceived value in three categories: product related values (alternative
solutions, product quaiity, product customization, and price), service related values (responsiveness, flexibility,
reliability, and technical competence), and relationship related values (image, trust, solidarity, time/effort/energy, and
conflict).
(44)
This study described four distinct value dimensions: emotional value, social value (enhancement of social seifconcept), functional value (price/value for money), and functional value (f)erformance/quaUty).
(45)
Customer perceived value is a function of quality and price, in which quality is composed of product-related
components, service-related components, and promotion-related components.
(48. 49)
These studies suggested a customer-centric value chain model and customer value criteria as follows: security,
performance, aesthetics, convenience, economy, and reliability.
(3)
This study presented four different ways in which customer value can be created in electronic grocery shopping:
competitive prices, a broad and/or specialized assortment, superior shopping convenience, and superior customer
service.
(7)
Key precursorsof perceived customer value in a B2C e-commerce setting are valence of on-line shopping experience,
perceived product quality, perceived risk, and product price.
(24)
This study suggested a useful comprehensive list of customer value components in Intemet commerce: quality, cost,
delivery time, convenience, time reduction, privacy, shopping enjoyment, safety, and environment impact.
(30)
In this study, an experiential value reflecting the benefits derived from perceptions of playfulness, aesthetics, customer
ROI, and service excellence was developed and tested in an Intemet and catalog shopping contest.
TABLE 2
Previous Studies for Service Quaiity
Reference
Service quality factors
(35)
This study proposes five dimensions of service quality (SERVQUAL) including reliability, assurance, tangibility.
empathy, and responsiveness.
(21)
This study extends the SERVQUAL dimensions to include factors important to Intemet shopping: convenience,
security, and entertainment.
Customer value derived from personalization and community
services is characteristic of e-business. Personalized services
enabled by personalization technologies such as contentbased recommendations and collaborative filtering (1) satisfy
customer's needs in the tailored patterns which are infeasible
in the traditional offline business. Virtual communities offered
by e-business or business blogs facilitate communication among
customers as well as between businesses and customers, enable
customers to share and acquire knowledge and experiences (51),
and offer the opportunity to reduce common risks faced by them.
Hoibrook (19) proposed a typology of experiential value in
the retail environment. He suggested a value landscape divided
into four quadrants framed by intrinsic/extrinsic sources of
value on one axis and active/reactive value on the other (19). In
order to apply the typology of experiential value to the catalog
and Internet shopping. Mathwick et al, (30) labeled these four
dimensions of experiential value: consumer return on investment,
service excellence, playfulness, and aesthetic appeal.
However, the typology of experiential value has limitations and
54
does not fully describe customer value of e- business as described
in Table 3. As .shown in Figure I. the seven customer value factors
we propose are classified by two dimensions: value-orientation
and interactivity. Customers perceive value from intrinsic or
extrinsic motivation (19. 30. 40). For example, economy, speed,
and convenience refiect extrinsic values while emotion reflects
intrinsic values. Interactivity is the degree to which two or more
parties communicate and interact with each other: in particular,
the degree into which customers actively participate. Virtual
communities of e-business provide the opportunity to share
and acquire more knowledge and experiences when customers
are proactive than when they are reactive. On the other hand,
customer value through economy, speed, convenience, and trust
is relatively constant regardless of the degree of interactivity.
RESEARCH MODEL AND HYPOTHESES
This paper aims to answer three research questions. First,
what are the constructs of customer value in e-business? Second,
Journal of Computer Information Systems
Faii 2007
TABLE 3
Constructs of Customer Value, Operational Definition, and References
Constructs
(customer value factors)
Operational definition
References
Economy
Economic value perceived by customer through cost reductions or lower
price than average market price.
(3, 24. 26. 30,
34.44,45,49)
Convenience
Value derived from providing convenient information, commodities, and
services for customer.
(3. 24. 49)
The value derived from timely responses to customer needs such as prompt
transactions, order fulfillment, and feedback.
(24)
The value derived from offerings of pnxlucts. service, and transaction
settings in a customized or personalized way.
(5. 14.29,46)
The value derived from a virtual comniunity in which customers share and
acquire knowledge and experiences, and communicate with the others
(2,5. 15.37)
Emotion
The value derived from offerings of entertainment, pleasure, enjoyment,
and playfulness.
(24.30,33,44,
47. 49)
Trust
The value derived from offerings of secure and reliable transactions, quality
assurance, security service, and privacy protection. The value derived from
the ability to flexibly meet the change of customer needs or unforeseen needs.
and to minimize customer's complaints.
(24, 26, 27, 34, 49)
Speed
Personalization
Community
E}- 10
183
30
>=50
7
1
Others
57
9
615
100
615
100
615
100
Age
Fall 2007
Journal of Computer Information Systems
57
Table 5
Scale Properties
Constmcts
Measure items
(No. of Item)
Factor loadings
expectation
level
Service
level
Low price (Q!)
.856
.837
Low transaction cost (Q2)
.814
.820
Convenient interface (Q3)
.682
.609
Convenient order and
tracking procedures (Q4)
.777
.70!
Reduction of shopping time (Q5)
.732
.667
Quick service (Q6)
.521
.648
Updated information (Q7)
.757
.567
Customized service (Q8)
.785
.815
expectation
level
Service
level
expectation
ievel
Service
level
1.704
1.726
.7865
.6943
1.507
1.367
.5803
.4944
1.608
1.746
.6337
.5845
1.660
1.787
.7792
.7663
1.823
1.726
.7006
.6513
1.846
1.945
.6729
.6690
4.947
3.492
.9122
.8445
Economy
Convenience
Speed
Personalization
Community
Emotion
Tmst
Personalized transaction
environment (Q9)
.820
.817
Sharing of information and
knowledge (QIO)
.648
.505
Proactive participation (QI 1)
.809
.842
Decrease of common risks (Q12)
.680
.706
Enjoyment and playfulness (Q13)
.768
.773
Events (Q14)
.824
.821
Simple and clear Web design (Q15)
.531
.529
Tmst in the transaction (Q16)
.733
.622
Quality assurance (Q17)
.816
.789
Secure service (Q18)
.795
.670
Brand (Q19)
.688
.568
Reliable terms and policy (Q20)
.693
.618
Reliable feedback (Q21)
.833
.766
Reliable resolution (Q22)
.742
.698
Consistent repurcbase
Repurchase
intention (Q23)
intention
Recommendation (Q24)
Reliability
coefficients
(Cronbach's alpha)
Eigenvalue
.808
1.856
.782
* Method for factor extraction: principal component. Rotation method: Kaiser normalized Varimax
58
Journal of Computer Information Systems
Fall 2007
.7281
and emotion value when dealing with limited
resources.
The second implication refers to the second
research question, the gap between the expectation
level and the current service level of customer
value. The largest gap was found in tmst value;
implying that a critical successful factor of intemet
shopping malls is improvements of inist value.
Finally, we derive an implication from the last
research question regarding relationships between
customer value and business value. Intemet
shopping malls can improve business value,
measured by repurchase intention, in two ways.
The first is to implement a strategy offering
customer value in economy and tmst. SO of Figure
4 corresponds to the strategy improving business
value by intensifying economy and tmst value
themselves for customer. To simplify customer
value factors. Economy, speed, and convenience
having relatively higher extrinsic value are grouped
into productivity-oriented value while community,
personalization, and emotion requiring relatively
Extrinsic
c
o
Figure 3. Stmctural Equation Model
s
IMPLICATIONS AND CONCLUSION
O
Implications
75
The results of this empirical study suggest three managerial
implications. The first implication comes from the first research
question, constmcts of customer value in e-business. First of
all, customers of e-business, in particular Intemet shopping
malls, expect higher utilitarian value such as economy, speed,
convenience, and tmst. This implies that Intemet shopping malls
need to focus on competence or dynamic capabilities (38, 52)
enabling more improvements of utilitarian value tban community
Intrinsic
Interactivity
Figure 4. Strategies for Improving Business Value through Customer
Value Groups
Table 6
Results of Hypotheses Tests for Analyzing Differences
Mean (SD)
Hypotheses: Constmcts
t-test
Expectation level
Service level
t statistics
P value
Hypotheses result
HI-1: economy
3.780(.734)
3.497(.67O)
8.491
.000
Accepted
Hl'2: convenience
3.594(670)
3.389(.62I)
6.602
.000
Accepted
HI-3: speed
3.697(.633)
3.427(.6O1)
9.477
.000
Accepted
HI-4: personalization
3.480(.722)
3.I81(.689)
8.521
.000
Accepted
Hl-5: community
3.437(.673)
3.248(.6O8)
6.561
.000
Accepted
Hl-6: emotion
3.469(.653)
3.297(.6O9)
5.835
.000
Accepted
HI-7: Tmst
3.539(.794)
3.157(.596)
12,111
.000
Accepted
Fall 2007
Journal of Computer Information Systems
59
higher interactivity are grouped into pleasure-oriented value as
shown in Figure 4.
The other is to offer tmst value by enhancing productivityoriented value group and pleasure-oriented value group. SI and
S2 of Figure 4 refer to the strategy improving business value by
increasing trust value through productivity-oriented and pleasureoriented value groups. The essence of discussion addresses how
firm.s increase customer trust value through productivity-oriented
and pleasure-oriented value. Many successful Intemet shopping
malls provide differentiated programs such as incentive and
premium programs including point rewards and cumulative
discounts as well as quick and convenient services. The shopping
malls also offer pleasure and optimum experience for customers
by opening events, renewing web site, supporting personalized
requirements, etc. The strong linkage between trust value and other
customer value comes from regular, consistent, and continuou.s
execution of various programs for enhancing productivityoriented and pleasure-oriented value groups. Sustainable
improvements of trust value Including reliable transaction, quality
assurance, and brand reliability through productivity-oriented and
pleasure-oriented value require firm's dynamic capabilities (51).
Wheeler (52) proposed an applied dynamic capabilities theory
for measuring a firm's ability to create customer value through
the business use of digital networks. The dynamic capabilities
refer to the ability of a firm to achieve new fonns of competitive
advantage through reconfiguration of organizational resources to
achieve congruence with the changing business environment (51).
This study implies that firms doing e-business need to possess not
only abilities to create customer value providing productivityoriented and pleasure-oriented benefits to customers, but also
adoption and absorptive capabilities of innovative technologies
such as mobile and ubiquitous networks to support or align with
customer value-creating programs. Both capabilities enable ebusiness to create ongoing customer value linked business value.
Limitations
This paper indicates the following limitations. First limitation
in this study is recognized in terms of generalizability. As we
confined the scope of our empirical study to Intemet shopping
malls including Intemet auction and data were collected from
Korean .shoppers, the results of this study didn't reflect the
difference of culture and nationality as anonymous reviewers
noted. Second, the relationship between customer value and
business value was not directly measured t)ecause repurchase
intention was employed a.s a surrogate of business value. A
comparison study on value from a business perspective (4, 38)
would be a new research agenda for overcoming this limitation.
Finally, the study contains the limitation associated with goodness
of fit of structural equation model since AGFI and TLI values
didn't indicate satisfactory levels.
CONCLUSION
This paper developed and empirically tested a model representing
the relationships between customer value factors and repurchase
intentions, as well as the difference between the expectation
of customer value and current service level. The findings here
suggested that the service level of customer value was significantly
lower than customer expectation, and customer value factors
positively affect the repurchase intentions. Specifically, economy
and trust value factors directly affect the repurchase intentions
60
while otber factors such as convenience, speed, personalization,
community, and emotion value indirectly affect it through trust.
Our research model and customer value classification scheme
contribute to the theory of e-business still t>eing in the early
growth stage. Three managerial implications derived from our
empirical study contribute to planning and organizing successful
strategies for Intemet shopping malls.
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Journal of Computer Information Systems
61
APPENDIX 1 — Questionnaire Items
No. of
item
Expectation level
Service level
Please indicate tbe level of value you expect wben
using Intemet sbopping malls for eacb of tbe items
t>elow.
Please indicate (or evaluate) tbe level of value you feel
received from your purcbase experiences with Intemet
shopping malls.
1
1
Very
Low
Qi
1
2
1
3
Neutral
1
4
1
5
Very
High
1
5
Very
High
1
4
1
3
Neutral
1
2
1
1
Very
Low
1
5
1
4
1
3
1
2
1
1
Lower price tban average market price.
1
1
1
1
2
1
3
1
4
5
Q2
Reduced transaction cost.
Q3
Convenient user interface of website.
Q4
Convenient searcb and order tracking.
Q5
Reduced shopping time.
Q6
Quick customer services such as order fulfillment and delivery.
Q7
Timely and updated infonnation.
Q8
Customized service.
Q9
Personalized transaction environment in the website.
QIO
Information and knowledge sharing.
Qll
Participation in website communities.
Q12
Reduced transaction risks through cooperation with otber customers in communities.
QI3
Enjoyment and playfulness experienced through Intemet sbopping malls.
QI4
Excitement and enjoyment experienced through events of the website.
QI5
Web design making me feel good and friendly.
QI6
Reliable transactions.
Q17
Quality assurance.
Q18
Privacy protection through security services.
Q19
Brand reliability.
Q20
Reliable responsiveness to routine user requirements.
Q21
Reliable feedback to complaints and questions.
Q22
Reliable responsiveness to ad hoc user requirements (not specified in terms and policy).
Please indicate your intentions based on your
purcbase experiences in Intemet sbopping malls.
1
5
Strongly
agree
1
4
1
3
Neutral
1
2
1
1
Strongly
disagree
Q23
1 will continue to purcbase items tbrough
Intemet sbopping malls.
1
5
1
4
1
3
1
2
1
1
Q24
I would recommend Intemet sbopping malls
to friends orotbers.
1
5
1
4
1
3
1
2
1
1
62
Journal of Computer Information Systems
FaU 2007