HOW E-SERVQUAL AFFECTS CUSTOMER'S ONLINE PURCHASE
INTENTION THROUGH CROSS-CULTURE COMPARISON?
Shu-Chiung Lin, Tatung University, Taipei, Taiwan, R.O.C.
sclin@ttu.edu.tw
Sheng Wei Lin, National Chengchi University, Taiwan, R.O.C.
larman520@gmail.com
Tan Chin Yen, Tatung University, Taipei, Taiwan, R.O.C.
Jennifertanc@yahoo.com
Ying-Ping Yu, Tatung University, Taipei, Taiwan, R.O.C.
ypyu@ttu.edu.tw
Pei-Hwa Yang, Tatung University, Taipei, Taiwan, R.O.C.
emily@ttu.edu.tw
ABSTRACT
Nowadays, Internet has become the best popular one of the consumers’ shopping channels.
However, there is different in online shopping situation is because of consumers in different
cultures and countries have different online shopping behavior is worth to discuss. This study
is to compare the cultures effect in different of online shopping situation between Taiwan and
Malaysia. There were 120 questionnaires collected from Taiwan respondents and 118
questionnaires from Malaysia respondent respectively. Statistical analysis software SPSS 17.0
and AMOS 6.0 were used to analyze the impact among two countries on e-service quality,
satisfaction, trust, and purchase intention. The model fit of this study was in an acceptable
level, and this indicates that the theoretical model of this study supports the description of eservice quality for e-retailers that online shopping situation will be effected by trust and
satisfaction. But caused by the cultures in online shopping situation and the relationship on
e-service quality to trust and satisfaction have significant differences between two countries.
Hofstede’s culture dimensions analysis was used in this study and it shows that the
uncertainty avoidance index of two cultures meets Hofstede’s research. It makes the
differences in culture affect the process in online shopping. The result of this study will be
available for those who interested in developing a transnational e-retailer as a reference, as
well as academic research on cross-cultural comparative analysis.
Keywords: Culture, Shopping Behavior, Trust, Satisfaction.
INTRODUCTION
With the development of information technology and the application of Internet become more
and more popularity, the Internet population is increasing every year. Until 31 December
2009, the world online population has reached 1.8 thousand million of which was led by Asia,
up to 7.6 hundred millions Internet users. Europe placed the second which has up to 4.2
hundred millions internet users. Among the Internet users in Asia countries which was led by
China, up to 3.38 hundred millions Internet users. Malaysia and Taiwan placed at the ninth
and eleventh which have up to 17 millions and 15 millions respectively (Internet Usage and
World Population Statistics, 2009).
According to Nielson (2009), the number of Internet shoppers up 40% in the past two years
and more than 85% of the world’s online population has used the Internet to make a purchase.
Among Internet users, the highest percentage shopping online is found in South Korea, where
99% of those with Internet access have used it to shop. Before year 2008, only 5.9% of
Malaysia population has shopped online. From the survey, seven in ten consumers claimed to
have made a purchase over the Internet before. In 2009, Taiwan maintained the growth trend
of online shopping market. The market between Malaysia and Taiwan has a great gap in
contrast.
This market trend has contributed many retailers know how to simplify the operation of the
website to attract consumer. There is no frontier in Internet, so the retailers not just have to
understand how the functions and services should be provided; they also have to find whether
the same functions matched in other countries. This study attempted to do the evidence
research and to be directed against the consumer of Taiwan and Malaysia’s baby and children
online store through online questionnaire. The purpose of this study is to test (1) the
significance of relationships among e-service quality, satisfaction, trust, and purchase
intention, (2) the comprasion effect of culture on e-service quality, satisfaction, trust and
purchase intentions between online retailing websites of Taiwan and Malaysia.
LITERATURE REVIEWS
e-Service Quality (E-SERVQUAL)
The main purpose of running a business is to pursue a better goal and higher profits.
Developed from Internet marketing and the traditional service quality literature, service
quality is one of the key factors in determining the success or failure of electronic commerce
(Yang, 2001). The concept of service quality in e-commerce, also called e-service quality, can
be defined as the consumers’ overall evaluation and judgment of the excellence and quality of
e-service offerings in the virtual marketplace. Parasuraman, Zeithaml, and Berry (PZB)
(1985) developed a multidimensional service quality assessment scale known as SERVQUAL
which define the term service quality as being the perception by a consumer of the difference
between the expected service and perceived service such as reliability, responsiveness,
competence, courtesy, communication, credibility, security, understanding, access and
tangible.
Furthermore, Parasuraman et al. (1988) developed a definition of service quality as being
“the overall evaluation of a specific service firm that results from comparing that firm’s
performance with the customer’s general expectations of how firms in that industry should
perform”. As for e-commerce stores, a well-designed website will create a different value
from the normal, and improve interest of a consumer access to the site simultaneously. Abels
et al. (1999) proposed six operational definitions of user criteria for site design on library.
Nevertheless, Santos (2003) used focus groups interviews to provide input for the
development of the conceptual model of e-service quality. It is proposed that e-service quality
consists of an incubative dimension and an active dimension using time – before and after a
Web site is launched – as the criterion for separating the dimensions. A well design website
will create profits and contribution to a company. E-service quality not only provides an ecommerce corporation a better advantage of competitive. It also enhances the relationship
between producers and consumers through consumer quick respond to involve consumer into
the process of product development. Ease of use, usefulness, appearance, linkage, structure
and layout, and content will be used in this study as the e-service quality (E-SERVQUAL)
that attracts consumers.
Satisfaction, trust, and purchase intention
Sysmanski and Hise (2000) summarized that convenience, product offerings and product
information, site design and financial security are the antecedents of e- satisfaction by using
focus-group interview. The empirical results of the study found that convenience, site design
and financial security had the significance influence to e-satisfaction. Rust and Oliver (1994)
suggest that customer satisfaction reflects the degree to which a consumer believes that the
possession or use of a service evokes positive feelings. It is important to note that satisfaction
could be further conceptualized as a transaction specific satisfaction or cumulative outcome
or overall satisfaction (Kuo et al., 2009; Chang, 2005). Parasuraman et al. (1988), Cronin and
Taylor (1994), and van Reil et al. (2004) consider overall satisfaction to be primarily a
function of perceived service quality. Compared to transaction specific satisfaction, overall
satisfaction reflects consumers’ cumulative impression of a firm’s service performance. While
Oliver (1981) states that satisfaction is a summary of psychological state originating when the
emotion surrounding disconfirmed expectations is coupled with the consumer’s prior feelings
about the consumption experience.
Corritore et al. (2003) provide a definition of online trust that includes cognitive and
emotional elements, with trust encompassing “an attitude of confident expectation in an
online situation or risk that one’s vulnerabilities will not be exploited” (Cyr, 2008).
Furthermore, the design of a website to a consumer to trust and feel confidence is very
important and “willingness to rely on the retailer and take actions in circumstances where
such action makes the consumer vulnerable to the retailer.” Cyr (2008) developed a model to
examine the characteristics of culture and design including information design, visual design
and navigation design as antecedents to Website trust, Website satisfaction, and e-loyalty in
Canada, Germany and China. The result showed that design characteristics should be central
consideration in Website design across culture.
Consumer browsing behavior will influence consumer’s purchase intention and re-purchase
cause from consumer’s experience. Henderson, Rickwood and Roberts (1998) developed a
visual online store to examine the theory of planned behavior and suggested that the purchase
intention of consumers will be affected if the consumers unable to browse or access to the
virtual online store at the first time. Lohse and Spiller (1998) observed 28 online stores and
sorted out six categories of environmental design that attract consumers. Emphasized that the
more simple and easy of user interface and the lower complexity of information will easily
affect consumer’s purchase intention
Culture
According to Hofstede, national culture is “the interactive aggregate of common
characteristics that influence a human group’s response to its environment” (Dan J. Kim,
2008). Hofstede developed an index model that identifies five primary cultural dimensions:
individualism (IDV), power distance index (PDI), masculinity (MAS), uncertainty avoidance
index (UAI), and long-term orientation (LTO). Although the Hofstede dimensions are the
most widely used, they have been criticized for equating nation with culture and for falling
short of describing all important aspects of national cultures. To enhance this present study of
the effects of national culture on trust antecedents, therefore, a second dominant culture
theory proposed by Hall and Hall is included. Hall and Hall differentiated “high context”
and “low context” national cultures mainly focused on communication aspects, an
important part of the innovation adoption process. Context refers to how individuals and their
society seek information and knowledge. People from high-context cultures (e.g., Japanese,
Chinese, Italians, Latin Americans, Arabs, Africans, Koreans, Southeast Asians, etc.) obtain
information from personal information networks such as friends, business acquaintances, and
relatives, whereas people from low-context cultures (e.g., Swiss, Austrians, New Zealanders,
South Africans, Americans, Canadians, etc.) seek information about decisions from direct
information sources such as watching, reading, reports, and databases (Dan J. Kim, 2008).
Hofstede’s (2003) research analysis (Table 1) showed that Taiwan has higher individualism
and power distance index than Malaysia. It means Taiwan tend to be an individual actions
and not centralized country. While Malaysia has higher masculine and uncertainty avoidance
index than Taiwan. It means Taiwan tend to have entrepreneurship, the spirit of adventure,
and need more stability on work. Furthermore, Taiwan has higher long-term orientation than
Malaysia. It shows that Taiwan is a country with high persistence and it takes long-term
orientation seriously and thinks time as a finite resource and thrifty.
Table 1: Statistic scores of national culture dimensions.
Country
PDI
IDV
MAS
UAI
LTO
China
80
20
66
30
87
Hong Kong
68
25
57
29
61
Japan
54
46
95
92
88
Singapore
74
20
48
8
72
South Korea
60
18
39
85
100
Taiwan
58
17
45
69
93
Malaysia
104
26
50
36
41
Phillipines
94
32
64
44
27
Vietnam
70
20
40
30
57
Thailand
64
20
34
64
32
Indonesia
78
14
46
48
62
India
77
48
56
40
51
RESEARCH DESIGN AND METHOLOGY
The research model (figure 1) is based on integration of literatures from many scholars’
opinions such as the e-service quality proposed by Abels et al. (1999) and Santos (2003), and
TAM model proposed by Davis (1986). Analyzed the relationship between the e-service
quality provided by the online retailers, built up consumer’s trust and meet the need of
consumer’s satisfaction. The questionnaire used in this study was design according to related
literatures and scholars’ opinions. The questionnaire initially including 65 items was
generated, consisting of 45 items for e-service quality, 5 items for satisfaction, trust, and
purchase intention respectively. All items were assessed using seven-point Likert scales from
1 = “strongly disagree” to 7 = “strongly agree”.
Figure 1: The research model.
The links for the online survey questionnaire were linked to Taiwan and Malaysia’s infant
and baby products’ online store respectively. While the language used in this study was
Chinese for online consumer in Taiwan and English for online consumer in Malaysia. The
part of language translation was requested by the professor from the department of English
application on behalf of audit grammatical errors and smoothness of the sentences.
DATA ANALYSIS AND RESULTS
Demographics of samples
The data were gathered through the internet questionnaire of Happy Home
(http://www.hbhome.com.tw/front/bin/home.phtml)
in
Taiwan
and
Littlewhiz
(http://www.littlewhiz.com/) in Malaysia. For the final survey, 120 survey questionnaires
were collected from Taiwan respondents and 118 survey questionnaires were collected from
Malaysia respondent respectively. The basic attributes of respondents are shown in this
section: ethnicity, gender, age, online shopping experience since, marital status, intention of
shopping online, average monthly online shopping, and average monthly online shopping
expenses. In the aggregate sample for Taiwan respondent, 50.4% respondents are men and
48.8% are women. More than 60% respondents are people born between year 1980 to 1988,
and most of the respondents have more than 3 years experience in online shopping. While in
the aggregate sample for Malaysia respondent, 81.4% respondents are women and 18.6% are
men. All of the respondents are between age 22 to 36, and most of the respondents have less
then 3 years experience in online shopping.
Reliability and validity test
A Confirmatory Factor Analysis (CFA) using AMOS 6.0 was conducted to test the
measurement model. Reliability and convergent validity of the constructs were estimated by
composite reliability and average variance extracted (AVE) (see Table 2 and 3). The
composite reliability for all constructs was above the recommended 0.70 level. Convergent
validity can be assessed by the average variances extracted (AVE) and all were above the
recommended 0.50 level (Fornell & Larcker, 1981), which meant that more than half of the
variances observed in the items were accounted for by their hypothesis constructs.
Convergent validity can also be assessed by factor loading.
According to Hair et al.’s (1992) recommendation, factor loadings level which greater than
0.50 were significant. All of the factor loadings of the items in this study were greater than
0.50 and each item loaded significantly on its underlying construct. Therefore, all constructs
in the model had adequate reliability and convergent validity.
To examine discriminant validity, this study compared the shared variances between
constructs with the AVE of individual constructs. Following Fornell and Larcker (1981), this
can be demonstrated by the fact that the square root of AVE each construct should generally
be higher than the correlations between it and any other constructs in the model. All results
confirm to be discriminant validity as shown in Table 4. In summary, the measurement model
demonstrated adequate reliability, convergent validity and discriminant validity.
Table 2: Confirmatory Factor Analysis (CFA) for e-service quality.
C.R.
Constructs
AVE
χ2
DF
χ2/DF
GFI
AGFI
RMSEA
Ease of Use
0.875
0.640
0.271
2
0.136
0.999
0.997
0.000
Usefulness
0.840
0.639
-
-
-
-
-
-
Appearance
0.875
0.641
1.246
2
0.623
0.997
0.987
0.000
Linkage
0.867
0.687
-
-
-
-
-
-
Structure and Layout
0.901
0.645
6.434
5
1.287
0.989
0.967
0.035
Content
0.892
0.674
1.234
2
0.617
0.997
0.987
0.000
*** Report analysis output from AMOS 6.0
Table 3: Confirmatory Factor Analysis (CFA) for satisfaction, trust, intention.
C.R.
Research constructs
AVE
χ2
DF
χ2/DF
GFI
AGFI
RMSEA
Satisfaction
0.839
0.636
-
-
-
-
-
-
Trust
Intention
0.848
0.887
0.651
0.724
-
-
-
-
-
-
*** Report analysis output from AMOS 6.0
Table 4: Discriminant validity.
EOU
e-service
quality
SAT
TRU
INTENT
EOU
USE
APP
LINK
LAYOUT
CONT
1
0.667**
0.513**
0.445**
0.594**
0.616**
0.475**
0.560**
0.435**
e-service quality
APP
LINK
USE
1
0.643**
0.596**
0.674**
0.715**
0.546**
0.577**
0.447**
1
0.604**
0.678**
0.625**
0.561**
0.527**
0.413**
1
0.626**
0.603**
0.495**
0.496**
0.345**
LAYOUT
1
0.695**
0.614**
0.568**
0.437**
CONT
1
0.663**
0.635**
0.490**
SAT
1
0.683**
0.594**
TRU
1
0.663**
INTENT
1
**; p<0.01 significant
Structural equation model (SEM)
This study employed structural equation model (SEM) to verify the proposed model and used
AMOS 6.0 software to analyze this model. The dimensions of e-service quality, satisfaction,
trust, and purchase intention were analyzed first. Later, the research model was analyzed and
verified. In the model fitness test, measurement model test and structural model test were
used. To test the normality assumptions underlying the maximum likelihood procedure,
multivariate normality test were used to exam whether the data were normal distributed and
the result indicated that data were normal (p-value>0.05). Then the confirmatory factor
analysis (CFA) was performed to test the overall fit of the measurement model. As shown in
Table 2 and 3, all the squared multiple correlations (SMC) of the measured variables were
larger than 0.50. Moreover, the completely standardized factor loadings all reached the level
of significance.
In the structural model, Bollen(1989) pointed out χ2/df below 5 is considered ideal fitness
and the most widely used overall model fit indices are the goodness of fit index (GFI),
comparative fit index (CFI), the adjusted goodness of fit index (AGFI), the root mean
residual (RMR), and the normed fix index (NFI). Threshold values for these indices are
above 0.90, above 0.90, above 0.80, ranging from 0.05 to 0.08, and above 0.90, respectively
(Hair et al., 1998). Another measure that attempts to correct for the tendency of the Chisquare statistic with a sufficiently large model is the root mean square error of approximation
(RMSEA), where values ranging from 0.05 to 0.08 are deemed acceptable (Jarvenpaa et al.,
2000; Byrne, 2001). In this study, values of GFI, AGFI, CFI, and RMSEA are 0.572, 0.539,
0.777 and 0.080, respectively and value ofχ2 and df (degree of freedom) is 2446.622 and
981, respectively. Meanwhile, χ2/df is 2.494 falling within the recommended ranges.
Figure 2 and 3 show the estimated path coefficients of the structural equation model for
Taiwan and Malaysia respectively. The result of this study shows that consumers in Malaysia
are more concern about the performance on e-service quality of e-retailers than consumers in
Taiwan. That is because of consumers in Taiwan have more experience in online shopping
than consumers in Malaysia. The results in figure 2 and 3 seem to indicate that the
interrelationships among e-service quality, satisfaction, trust, and purchase intention are
specifically significant except for the relationships between satisfaction and purchase
intention in figure 3 shows insignificant.
From above analysis, culture dimension will be used to explain the different online purchase
behaiver between Taiwan and Malaysia. According to formula given from Hofstede’s present
studies is only uncertainty avoidance index adopted in this study. Based on Hofstede’s culture
dimensions, the online purchase intention of consumers is deeply affectd by different
construct which is satisfaction and trust because of the different uncertainty avoidance index
in the different countries.
e33
EOU6
e4
0.83
e3
EOU5
e2
EOU4
e1
EOU1
e7
USE5
e6
USE4
e5
USE1
e11
APP6
e10
APP4
0.88
e9
APP3
0.88
e8
APP1
e14
LINK4
0.91
Ease of Use
0.83
0.77
LINK3
e12
LINK2
e18
LAYOUT8
e17
LAYOUT7
e16
LAYOUT6
e15
LAYOUT5
e25
e26
SAT1
SAT2
SAT5
0.79
0.92
Usefulness
0.80
0.83
0.87
0.83
0.84
e35
0.87
0.66
Satisfactions
Appearance
e39
0.76
0.78
e13
e24
e34
0.76
0.35
e36
0.86
E-SERVQUAL
0.73
Intention
0.54
0.70
0.74
Linkage
0.86
0.81
0.41
0.56
INTENT1
e27
INTENT2
e28
INTENT5
e29
0.89
0.80
e40
Trust
e41
0.88
e37
0.80
0.70
Structure &
Layout
0.88
0.88
0.70
e23
LAYOUT3
e22
CON6
e21
CON5
0.80
e20
CON3
0.79
e19
CON2
0.75
0.86
0.88
TRU4
TRU3
TRU1
e32
e31
e30
e38
0.85
Content
0.89
Figure 2: Taiwan’s SEM model.
e4
e33
EOU6
0.51
e3
EOU5
e2
EOU4
e1
EOU1
e7
USE5
e6
USE4
e5
USE1
e11
APP6
e10
APP4
0.90
e9
APP3
0.82
0.94
Ease of Use
0.88
0.71
e34
0.82
0.85
APP1
e14
LINK4
e13
LINK3
e12
LINK2
e18
LAYOUT8
LAYOUT7
e16
LAYOUT6
e15
LAYOUT5
e26
SAT1
SAT2
SAT5
0.72
0.57
0.70
0.84
e35
0.93
0.65
Satisfactions
Appearance
e39
0.88
0.82
-0.23
e36
0.86
E-SERVQUAL
0.69
0.91
Intention
0.64
0.83
e37
0.21
0.88
0.91
e40
Trust
e41
0.93
0.83
Structure &
Layout
0.69
0.84
e23
LAYOUT3
e22
CON6
e21
CON5
0.76
e20
CON3
0.90
e19
CON2
e38
0.68
Content
0.91
Figure 3: Malaysia’s SEM model.
0.92
0.88
Linkage
0.89
0.86
e17
e25
Usefulness
0.85
e8
e24
0.63
0.90
0.72
0.77
0.86
TRU4
TRU3
TRU1
e32
e31
e30
INTENT1
e27
INTENT2
e28
INTENT5
e29
CONCLUSIONS
The major objectives of this study were to identify the interrelationships among e-service
quality, satisfaction, trust, and purchase intention on the online retailing websites.
Interestingly the SEM model between Taiwan and Malaysia are significantly different as
shown in figure 2 and 3. As shown in figure 2, e-service quality of Taiwan model has
significant effects on satisfaction and trust. While on the other hand, e-service quailty of
Malaysia model has significant effects on satisfaction but not for trust.
For online consumers in Taiwan, purchase intention will be affected by satisfaction and trust
of the website. However, as the network speed and experience in online shopping for
consumer in Malaysia is not as high as compare to Taiwan. Purchase intention will not be
affected by satisfaction but with the trust of the website. According to Hofstede’s culture
research, we found that Malaysia is a low uncertainty avoidance country while Taiwan is a
moderate uncertainty avoidance country.
From the managerial implications, the e-retailers must take consumers’ satisfaction and trust
into consideration will be more effective than the advertising or worth of mouth. Avoid overly
complicated of website design or need good quality of network for opening the website
smoothly. Moreover, it will enhance the opportunity for consumer to shop at the website if
the e-retail makes consumers feel reliable and comfortable when they first entered. As the age
and the experience of shopping online are different between Taiwan and Malaysia, therefore
it is important for e-retailers to provide a good service quality in order to enhance consumers’
satisfaction and trust.
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