Understanding consumer online shopping behaviour from the perspective of transaction costs

5.7.3 Variances in Endogenous Constructs Explained 
Table 5.21 shows the variances in endogenous constructs explained in the structural model, 
which were indicated by R
2 
value. Specifically, eight antecedent variables explained 96 per 
cent of the variance in consumer TCs, which, in turn, explained 70 per cent of the variance in 
online purchase behaviour. In addition, 76 per cent of the variance in customer loyalty was 
explained by consumer TCs and consumer satisfaction. Consumer TCs accounted for 77 per 
cent of the variance in customer satisfaction. The R
2
value for endogenous variables and path 
coefficients of the structural model were also presented in Figure 5.3.
5.7.4 Direct and Indirect, and Total Effects 
The standardized direct, indirect and total effects demonstrated by the structural model for 
controlling for age, gender, income and education level are provided in Table 5.22. The 
results revealed that all of the eight antecedent variables have indirect effect on online 
purchase behaviour, customer loyalty and customer satisfaction through consumer TCs, when 

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controlling for age, gender, income, and education level. Consumer TCs also have an indirect 
negative effect on customer loyalty through customer satisfaction.
The strongest direct effect (-.875) in the model was the relationship between consumer TCs 
and customer satisfaction, and the strongest indirect effect was the influence of e-service 
quality on customer satisfaction. The size of this indirect effect was .421, which was 
calculated by multiplying the standardized path estimate from e-service quality to consumer 
TCs by the standardized path estimate from consumer TCs to customer satisfaction. The size 
of the total effect of consumer TCs on loyalty was -.855, which was calculated by summing 
the direct and indirect effects of consumer TCs on loyalty. 

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