Published at : 28 Jun 2023
Volume : IJtech
Vol 14, No 4 (2023)
DOI : https://doi.org/10.14716/ijtech.v14i4.5407
Moteb Ayesh Albugami | Department of Management Information System, Faculty of Economics and Administration, King Abdulaziz University, Jeddah-Saudi Arabia, 21589 |
Asma Zaheer | Department of Marketing, Faculty of Economics and Administration-King Abdulaziz University, Jeddah- Saudi Arabia, 21589 |
With the increasing cases of COVID-19 and unexpected
lockdowns, technology acceptance, especially internet-based online
shopping becomes an important issue in today's business world. Since
Information technology is pervasive and has enormous potential, therefore
this study identifies antecedents of online shopping adoption by utilizing Unified
theory and use of technology model and electronic service quality to observe
the influence of these two variables on buyers' intention to adopt internet shopping.
The data was collected from the customers using products of the Fast-moving
Consumer goods (FMCG) industry. The data collection period was one month
beginning in April 2021. The data was analysed using mainly two
approaches confirmatory factor analysis and structural equation modelling using
Lisrel 8.80. The findings of this study revealed that the integrated UTAUT
model is highly significant and influences the buyer's intention to adopt
internet shopping for their daily needs.
E-service quality; E-commerce research; Lisrel 8.80; Technology Acceptance Model (TAM); UTAUT model
Introduction
The advent of Covid-19 and the growing
importance of information technology have transformed online shopping with the
increase in different online platforms over the last decade (Aboobucker and Bao, 2018). Internet shopping
allows comparing products online, accessing the products anytime and
anywhere, comparing the prices of different products, accessing
information about the products, etc. (Aboobucker
and Bao, 2018; During COVID-19, internet-based shopping has emerged
as the most profitable e-commerce tool . FMCG organizations have set
up their official websites as the customers are internet savvy and cannot
access the stores during the COVID-19 restrictions. It also reduces operational
costs and improves market share. Shopping based on the internet is
helpful for many FMCG companies to offer services to individualized customers
and improve Service Delivery (Boateng et al.,
2016).
The organizations that provide services are changing their method of
operation towards IT-based media in order to compete in a fiercely competitive
market. In addition to this, it aids
them in cost reduction and the development of value-added services for their
clients. Web-based are one of several
instances in various industries. These
systems, which operate on the automation concept, are offered by many Fast-moving
Consumer goods (FMCG) companies. It was
anticipated that by including these service systems, service providers would be
able to increase customer happiness, financial performance, and service
quality. Researchers argued that information technology-based services can help
and improve service quality by making services more convenient, offering a
variety of new services, and should be useful in gathering information about
service performance. Ultimately, this information can be used by management to
improve its services.
Performance expectation for Internet shopping context is described as
the "level of use that an individual will make of the fact that through
the use of online shopping, a customer can obtain more benefits and complete
the perceived tasks more easily." Expectancy The user's expectations for
comfort and convenience are covered by this component. According to authors like Zhou, Lu, and Wang (2010), utilizing the internet
is simple and doesn't take much work, thus there's a good likelihood that
people will start using it for shopping. The link between social influence and
behavioral intention is hotly contested. These variables of service quality are
included in this research.
Since it is now widely
believed that information technology is inseparable from the service sector, it
is important to comprehend how customers see IT-based services and how they
evaluate service quality in relation to customer satisfaction. The most crucial thing that businesses want
to comprehend is how customers perceive the quality of the services they
receive because they are the ones who really utilise the information
technology.
There are many studies on
the adoption of technology, but researchers are hesitant to discuss customer
perceptions in the context of customer satisfaction for IT-based services. The literature also makes clear that service
providers need to be aware of the factors that clients take into account when
using their services, how these considerations affect clients' intentions when
using IT-based services, and how these perceptions influence clients'
intentions regarding service quality. A
thorough knowledge of these ideas would enable managers to create future
services that are more centred around their clients.
A conceptual model has been
developed based on these research constructs after significant research
constructs were identified from the most recent literature in the field. The
variables and their items influence how customers perceive IT-based services,
service quality, and customer satisfaction.
The proposed model was evaluated after data was gathered from a sample
of various online customers. Through the
use of Lisrel 8.80 and structural equation modelling (SEM), analysis of the
acquired data was carried out.
The following is a breakdown
of this paper's structure:
In the beginning, recent and
pertinent literature was read, and research gaps were found. Based on these
research gaps, several significant research constructs were found, and an
overall conceptual model of the research was also constructed. Then, with
reference to measurement and the structural model, the research methodology and
the structural equation modelling findings were presented and debated. The report ends with a brief discussion of
the findings' management implications.
Literature review and research
For each research variable thorough
literature review was conducted, the latest insights and measures were identified,
and based on them, the research scales were developed. All the research
constructs were adapted strictly from the literature, and the description and
definitions were presented with the studies in which they were used previously.
The details of the extant literature review with respect to each research
construct are given as under:
2.1. Performance expectancy
Performance expectancy for
Internet shopping context is defined as the "degree where an individual
will use that by the use of internet shopping a customer can get more benefits
and attain the perceived tasks more conveniently". and many other
researchers also give proof of performance expectancy for the adoption of
internet shopping based on internet technology (Abu-Shanab,
Pearson, and Setterstrom, 2010; Khalil, Sutanonpaiboon,
and Mastor, 2010). In light of the above studies following
hypothesis is proposed:
H1. Performance
expectancy influences user shopping online adoption
2.2. Effort expectancy
This component refers to
user expectations of convenience and ease. Authors like Zhou, Lu, and Wang (2010) demonstrated
that using the internet is easy to use and does not require much effort,
and there is a high chance that they will adopt an internet-based medium the
shopping. Many studies state a remarkable direct relationship connecting effort
expectancy and interaction with the user to accept shopping on the
internet (Chaouali, Yahia,
and Souiden, 2016). Therefore, hypothesis was framed as
H2. Effort
expectancy will influence user intention to adopt online shopping
2.3. Social influence
Social influence also
affects behavioral intention, and the relationship is widely debated. It is
referred to as a medium of shopping. Previous studies showed significant
results regarding this relationship (Chaouali,
Yahia, and Souiden, 2016) Therefore, it is hypothesized as follows:
H4. The social
influence will influence user intention to adopt online shopping
2.4. Electronic service quality in online
shopping
E-service quality is
referred to as the quality of services that are offered using the internet
through websites. The scary was introduced for e-service
quality adapted from the
conventional SERVQUAL scale developed by Parasuraman, Zeithaml,
and Malhotra (2005). Parasuraman, Zeithaml, and Malhotra
(2005) advocate that e-service quality covers
the entire process from purchase to refunds and Returns. The research also
states that the measures are significant during online shopping. These
constructs are being adopted by following the footsteps of many previous
researchers such as Parasuraman, Zeithaml, and Malhotra
(2005).
2.4.1.
Assurance
The environment of online shopping is different, where a guarantee is the main concern for the customer. Many studies have identified that customers want Assurance. Researchers also agreed that customer assurance should be guaranteed and suggested that service providers should protect the interest of customers in case of any theft or fraud. These arguments are under the control of Ben-Mansour (2016), Therefore, Assurance is hypothesized as follows:
H6. Assurance will influence user intention to adopt
online shopping
2.4.2.
Reliability
Reliability in an online
context refers to the extent to which online website availability ensures that
customer should receive a product at the time promised by the retailer.
According to many researchers, the customer is also aware of the features with
full accuracy (Blut et al., 2015)
H7. Reliability
will influence user intention to adopt online shopping
2.4.3. Customer
service
In the case of online
shopping, especially in the context of FMCG products, many researchers have
stated that customers expect they should be able to complete the transaction in
the minimum possible time correctly, queries should be answered promptly using
the internet-based channel for online shopping (Blut
et al., 2015; Parasuraman, Zeithaml, and Malhotra,
2005; Zeithaml, 2002). In
light of the literature, customer service is hypothesized as follows:
H10: Customer
service will influence user intention to adopt online shopping
2.4.4.
Website Design
Online shopping is
primarily based on the interface created by the website designer (Blut et al., 2015) The attractiveness of the website quality and the
information about products influence customers for online shopping say website
plays an important role in behavior in online shopping. Therefore, it is
hypothesized as follows:
H11: Website design will influence user intention to
adopt online shopping
3.1. Scale
development
The research instrument was divided into
two parts, the first section includes the demographic profile of respondents,
and the second part consists of latent constructs items. The questions related
to demography comprising age, gender, and occupation of the respondents were
asked initially. Further questions related to research constructs include eight
latent constructs, five-point Likert scale was used from strongly agree (1) to
disagree (5).
3.2. Data
collection
In this research quantitative research
method was used by following the footsteps of the responses should be 5 times
or 10 times the items used in the questionnaire. Therefore, in this study, 24
items were used.
3.3.
Sample profile
The respondents were mostly females (n= 253,
77.85 per cent), while the remaining (n= 72, 22.15 per cent) were males. The
majority of them (n= 303, 93.2 per cent) range in the age of 20-40 years. Most
of the responses have a graduation-level qualification (n= 250, 76.9 per cent)
and were employed (n= 280, 86.15 per cent) and unemployed (n= 45, 13.85 per
cent).
Data
Analysis
The
relationships were assessed using SEM following the footsteps of Hair et al., (2014). SEM, Lisrel 8.80 was
used. The
measurement model for, i.e. Measures of UTAUT model and measures of e-service
quality as independent variable and intention to adopt (BI) as the dependent
variable. Unidimensionality, reliability, and validity were also
ensured.
4.1. Assessment of Measurement Model
As the first step, the measurement
model was evaluated and initiated with the assessment of
unidimensionality, construct reliability, and convergent validity of the
research constructs (Chan et al., 2022).
In this research, construct reliability was estimated by the use of composite
reliability and Cronbach's alpha. The composite reliability and Alpha
values should be later than 0.7 for the assessment of the reliability of the
scale. The values of composite reliability and Cronbach's Alpha values are
given in Table 2; for the assessment of unidimensionality, it is agreed that
the standard loading of each item should be greater than 0.3 (Long et al., 2022).
The construct reliability was assessed by the use of t values as
suggested by Many researchers t value should be greater than 1.96
for each scale. All the values were found to be in acceptable ranges.
4.2.
Structural Model
The structural model was estimated for each of the constructs, i.e. Measures of the UTAUT model and measures of e-service quality as an independent variable and intention to adopt (BI) as a dependent variable. lists the constructs and retained items after scale purification, which were included in the structural models.
Estimation of the Structural Models
The structural model with, i.e. Measures
of the UTAUT model and measures of e-service quality as independent variables
and intention to adopt (BI) as a dependent variable. The direct impact of
measures of UTAUT and e-Service Quality on intention to adopt (BI) was examined
(Refer Figure 1).
Results
show that the direct effect of PE on BI was insignificant (-0.46), the direct
effect of EE on BI was significant (1.02), the direct effect of SI on BI was
insignificant (-0.32), the direct effect of AS on BI was significant (0.66),
the direct effect of RL on BI was significant (0.44) the direct effect of WD on
BI was insignificant (-1.08), the direct effect of CS on BI was significant
(0.41).
The
causal relationships from independent variables to internet-based shopping were
significant, and these findings are in line with. Similarly, the influence of
effort expectancy on online shopping behavior is also pointed out. Social
influence also influenced the intention to adopt online shopping, as observed
by and Venkatesh et al. (2011). The
results regarding e-service quality constructs and their influence on internet
base shopping fall in order with Parasuraman, Zeithaml, and Malhotra (2005), and. However, the relationships of
performance expectancy, social influence from the measures of the UTAUT
model, and website design from the measures of e-service quality were found to
be insignificant in influencing online shopping customers. The reasons for
these findings are discussed in the conclusion.
Figure
1 Showing path values of Independent and Dependent
variables
Table 1 Showing Factor loadings, Cronbach's Alpha, and Construct reliability
Scale |
Cronbach’s |
Constructs |
Factor loadings range |
|
Alpha |
Reliability | |
|
|
(CR) | |
PE |
.764 |
0.7 |
0.71-0.95 |
CS |
.831 |
0.7 |
0.61-0.87 |
AS |
.748 |
0.7 |
0.61-0.89 |
RL |
.832 |
0.6 |
0.51-0.71 |
EE |
.878 |
0.7 |
0.45-0.67 |
SI |
.789 |
0.8 |
0.56-0.76 |
WD |
.876 |
0.6 |
0.57-0.78 |
BI |
.765 |
0.6 |
0.67-0.89 |
Conclusions
This study concludes that all the
measures are valid and have a significant impact on online shopping users.
Findings of the structural model reveal that all the measures of the UTAUT
model and e-service quality measures significantly impact internet users'
intention to adopt online shopping. However, the relationships of
performance expectancy, social influence from the measures of the UTAUT
model, and website design from the measures of e-service quality were found to
be insignificant in influencing online shopping customers. This can be
attributed to the fact that for many FMCG companies, this is a phase of
transformation during COVID-19, and they did not develop their websites to
cater to a huge volume of online customers, the demand of whom was unexpected
during lockdowns. The negative relationships between performance
expectancy and online shopping users' intention can be due to the high load of
customers, due to which there is an issue of efficiency and performance on the
part of FMCG retailers. As it is also included that social influence does
not play any role in influencing online shopping customers, this can be
attributed to the fact that during COVID-19, social influence was decreasing as
people were not able to communicate and socialize much due to restrictions due
to COVID-19 lockdowns. The study can be e extended to other sectors
also.
Limitations
As
every research has some limitations, this study also has some limitations
besides its contribution to service quality and information technology. It is
very important to highlight those limitations so that future research can be
free from those limitations and errors.
1. A small sample size was used in the
investigation. As a result, the study's tiny sample size could have presented
issues. Results could have been more broadly applicable if there had been a
larger sample size.
2. The majority of the study's surveys were
sent. Since the personal interview approach had not been used, the response
rate was not as great as it could have been.
3. Even
though the research might have included all BIs, only Indian UBIs were chosen
for the study due to time and geographic constraints.
4. The opinions of the key informants, in
this case Senior Managers, served as the foundation for the study. Studies that
rely on a single source, however, may have concerns with common technique bias.
One can see the study's absence of a multi-respondent design as a limitation.
This claim was nevertheless supported by the researcher's investigation of common
procedure bias, which revealed that it had no impact on the study's
conclusions.
5. The study is prone to the drawbacks of
this type of research due to its cross-sectional design. The independent and
dependent variables are only measured once in the research. Longitudinal
research may be used in future studies.
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