Understanding consumer online shopping behaviour from the perspective of transaction costs



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 et al.
2005). For example, several 
studies (Taylor and Todd 1995a, Jackson
 et al.
1997) reported that a positive attitude toward 
a new technology was not an invariably significant predictor of consumers’ intentions to use 
that technology. In addition, research has shown inconsistent findings regarding the effect of 
PEOU on attitude. Whereas some studies found positive and significant effects of PEOU on 
attitude (O'Cass and Fenech 2003, Chen and Tan 2004), others revealed insignificant 


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relationships (Chau and Hu 2001b, Townsend
 et al.
2001). Researchers suggested belief 
factors such as PU, enjoyment, trust, and performance may influence one's attitude toward 
using a technology more strongly than by PEOU (Van der Heijden and Verhagen 2004). 
While some researchers favour TAM because it is a parsimonious model (Tong 2010) (Porter 
and Donthu 2006), others argue that this parsimony represents a major drawback (Venkatesh
 
et al.
2012). According to social psychology theories, an individual’s behaviour is not just 
driven by evaluative beliefs and attitudes, but also by subjective norms, perceived 
behavioural control, and habits (Burton-Jones and Hubona 2006). Thus, a significant body of 
studies suggest improving or extending TAM constructs (Wixom and Todd 2005, Porter and 
Donthu 2006, Srite and Karahanna 2006, Cyr
 et al.
2007, Aggelidis and Chatzoglou 2009, 
Chiu
 et al.
2009b, Kim and Garrison 2009, Li and Huang 2009, Chung
 et al.
2010, Pan and 
Jordan-Marsh 2010, Belanche
 et al.
2012a, Chyou
 et al.
2012, Lee
 et al.
2012a, Teh and 
Ahmed 2012, Cheema
 et al.
2013, Hiramatsu and Nose 2013, Park
 et al.
2014)
.
One of the extensions of TAM, TAM2, was proposed by Venkatesh and Davis (2000). In 
TAM2, social influence (subjective norm, voluntariness, and image), cognitive instrumental 
processes (job relevance, output quality, and result demonstrability) and experience were 
included and found to have a significant influence on PU. The new model was tested in both 
voluntary and mandatory settings. The results strongly supported TAM2 and explained 60 
percent of user adoption using the update version of TAM (Venkatesh and Davis 2000). 
Hsu 
and Lu (2004) and 
Park (2009)
provided similar empirical evidence that supported the effect 
of social influence on user’s belief of a new technology.


22
In a web-based environment, many researchers found that there were a broader range of 
additional factors that were needed to investigate users’ adoption behaviour. For example, 
Venkatesh (2000) suggested that TAM could be further enhanced by adding control, intrinsic 
motivation, and emotion as variables within the PEOU dimension. Cai and Xu (2007) 
extended the original TAM to encompass perceived enjoyment as an additional motivational 
determinant of acceptance. Gefen and Straub (2003), Kim (2012), Pavlou (2003) and Shih 
(2004) integrated previous work by incorporating trust into TAM and found positive effect of 
trust on behavioural intention. Ha and Stoel (2009) integrated enjoyment and trust into TAM 
to understand consumer acceptance of e-shopping.
In addition, social influence was incorporated into TAM and further showed a significant 
effect on consumer’s intention toward technologies according to Hsu and Lu (2004). Chen et 
at. (2002) added compatibility to PU and PEOU in predicting an online consumer’s attitude. 
The model showed that compatibility was positively related to a consumer’s attitude about 
using technology along with PU and PEOU. Li and Huang (2009), Van der Heijden et al. 
(2003) and Pavlou (2003) augmented the TAM with the perceived risk in e-stores. Chen and 
Tan (2004) further expanded TAM by adding a link from perceived service quality to attitude 
toward using. Porter and Donthu (2006), in their work to study the attitude towards Internet 
usage used access barrier along with PU and PEOU as the additional construct based on the 
TAM. 
In summary, a large number of empirical studies have applied TAM to examine online 
consumer behaviour. PU and PEOU together can routinely explain up to 40 per cent of usage 
intentions and 30 per cent of systems usage (Meister and Compeau 2002). However, the 
literature notes TAM's parsimony as a key limitation (Venkatesh 2000, Vijayasarathy 2004). 


23
TAM has been criticized for only explaining consumer behaviour on the Internet based on a 
technological point of view. Since the online environment is quite complex and full of 
uncertainties, there are many potential factors, such as concerns about security and privacy, 
product quality, and e-service quality, site design, product return, consumers’ Internet skills, 
etc. that can affect online consumer purchase and post-purchase decision. Only focusing on 
two dimensions (PU and PEOU) in the TAM seems too simple in such a complex online 
environment. Moreover, the variables in TAM are better suited to decisions involving few 
technology usage choices than to situations involving users' voluntary choices (e.g., online 
shopping) (Vijayasarathy 2004). Therefore, the original TAM variables may not adequately 
capture key beliefs influencing consumers' attitudes toward online shopping.

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