Predicting online repurchase intentions with e-satisfaction as mediator: a study on Gen Y
| DOI | https://doi.org/10.1108/VJIKMS-10-2017-0066 |
| Pages | 427-447 |
| Date | 13 August 2018 |
| Published date | 13 August 2018 |
| Author | Shrawan Kumar Trivedi,Mohit Yadav |
| Subject Matter | Information & knowledge management,Knowledge management,Knowledge management systems |
Predicting online repurchase
intentions with e-satisfaction as
mediator: a study on Gen Y
Shrawan Kumar Trivedi
Department of IT and Systems, Indian Institute of Management Sirmaur,
Sirmaur, India, and
Mohit Yadav
Jindal Global Business School, OP Jindal Global University, Sonipat, India
Abstract
Purpose –Shopping online is a fast-growing phenomenon. A look into the rapid exponential growth
of the primary players in this sector shows huge market potential for e-commerce. Given the
convenience of internet shopping, e-commerce is seen as an emerging trend among consumers,
specifically the younger generation (Gen Y). The popularity of e-commerce and online shopping has
captured the attention of e-retailers, encouraging researchers to focus on this area. This paper aims to
examine the relationship between online repurchase intention and other variables such as security,
privacy concerns, trust and ease of use (EOU), mediated by e-satisfaction.
Design/methodology/approach –A self-administered survey method is used, and students aged
between 20 and 35 years at universities in northern Indiaare selected as subjects. To test the hypotheses of
this study, an online questionnaireis distributed to participants, with 309 legitimate responsesreceived. The
data are analyzed using SPSS version20.0 and AMOS version 20.0. Structural equation modeling is used to
examine the modeland to test the hypotheses.
Findings –The results of this study show that security,privacy concerns, trust and EOU have a positive
significant relationship with repurchase intention. The findings also reveal that e-satisfaction has a full
mediation effect between securityand repurchase intention and also between trust and repurchase intention.
In addition, a partial mediation effectof e-satisfaction is noted between EOU and repurchase intention and
between privacyconcerns and repurchase intention.
Practical implications –The results show that security, trust, EOU and privacy concerns are the
factors that have most impact on consumer purchasingbehavior. In terms of the repurchase intention
of Gen Y consumers, what is needed are strong security features, an easy-to-use interface, a trusted
privacy policy and the creation of trust. Furthermore, it may be beneficial to observe e-satisfaction as
a mediator when identifying potential problems; online satisfaction is important for the group in this
study, and the results show that it impacts on the relation between repurchase intention and other
factors.
Social implications –In terms of the repurchaseintention of Gen Y consumers, what is needed are strong
security features, an easy-to-useinterface, a trusted privacy policy and the creation of trust. Furthermore, it
may be beneficial to observe e-satisfaction as a mediator when identifying potential problems; online
satisfaction is important for the group in this study, and the results show that it impacts on the relation
between repurchaseintention and other factors.
Originality/value –This research determinesthe impact of security, privacy concerns, EOU and trust on
the onlinerepurchasing behavior of Gen Y in India. The mediation effect of e-satisfactionis also determined.
Keywords Service, Trust, Privacy, Repurchase intention, E-satisfaction, Electronic commerce
Paper type Research paper
Predicting
online
repurchase
intentions
427
Received3 October 2017
Revised5 April 2018
27April 2018
23May 2018
Accepted26 May 2018
VINEJournal of Information and
KnowledgeManagement Systems
Vol.48 No. 3, 2018
pp. 427-447
© Emerald Publishing Limited
2059-5891
DOI 10.1108/VJIKMS-10-2017-0066
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2059-5891.htm
Introduction
In today’s competitive world and rapidly shifting business environment, the power of
retailers and the level of customerdemand are increasing day by day. The producer needs to
maintain long-term relationships with customers to survive in such a competitive
environment. In the current literature, price is found to be an important factor in these
relationships, but other factors such as product and service quality are also important in
determining repurchase intention (Giovanis et al., 2013). Consumers today are strongly
influenced by the mass media, which influenceconsumer thinking through emotions, needs,
wants and demands. Enterprises and business leaders are spending billions of dollars on
consumer research to identify andanalyze the factors influencing consumer decisions; such
analysis helps in detectingthe orientation of consumer behavior (Thapa, 2012).
In the digitalized world today, companies are changingfrom brick organizations to click
organizations. Because of this, a number of challenges have sprung up in attracting
potential customers. Oncea customer visits a particular e-marketplace, the challengefor the
e-retailer is how to persuade that customerto repurchase from the same platform. E-loyalty
has become an importantissue in the recent literature of e-commerce because of the potential
benefits for e-business. E-loyalty means that a customer will revisit or repurchase from the
same website and is defined as “a customer’s commitment and favorable attitude toward
online companies”(Safa,2014, p. 162).
Repurchase intention is “the subjective probability that a customer (i.e. experienced
customers) will continueto purchase a product from the same online seller”(Chiuet al., 2012,
p. 5). Constructs such as service,security and internet flexibility of e-commerce develop trust
between the consumer and e-commerce websites. If an organization can build trust among
existing customers, it develops the scope of consumer repurchase intention (Porter, 1974).
The work of Schoenbachler et al. (2004) recognizes loyal buyers whose purchasing decision
is independent of the price; these buyers invest money in the brand and derive satisfaction
from their decision. Repurchase intention is a psychological behavior and one of the main
drivers that motivate buyersto continue buying products or services. The work of Fishbein
and Ajzen (1975) demonstrates relations between cognition, intention and behavior, as
evidenced in the theory of reasoned action (TRA). Accordingto TRA, “intentions are jointly
determined by the person’s attitude and subjective norm concerning the behavior”
(Al-Gahtani and King, 1999, p. 278). The intentionto purchase can also be categorized as one
of the measures of customer cognitive behavior, and it indicates how a customer intends to
purchase a particular productor service. The work of Mikhailitchenko et al. (2009) proposes
a construct of customer trust in buying a specific brand; this can be taken as a measure of
the repurchase intention of the consumer.The trust factor can enhance consumer interest as
part of the complete decision-makingprocess in determining intention to buy.
This study attempts to build an empirical model to develop a relationship between the
constructs of security, privacyconcerns, trust, EOU and repurchase intention. The literature
shows that security, privacy concerns, trust and EOU may lead to e-satisfaction for
consumers, and hence,repurchase intention may be increased (Palvia,2009;Ismail and Safa,
2014). This study also analyzes the mediationeffect of e-satisfaction.
Theoretical background and conceptual model
To fully understand customers’purchasing behavior, it is important for e-businesses to
develop knowledge not only of customer perceptions of technology but also of important
attributes of technology that may give high satisfaction levels in the context of online
purchasing. Trust is another construct that plays a crucial role in creating an intention to
repurchase (Baptista and Oliveira, 2015). With the increasing popularity of e-business
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