Understanding consumer online shopping behaviour from the perspective of transaction costs



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 et al.
2000, Bhatnagar
 et al.
2000b, Liao and Cheung 2001, Burroughs 
and Sabherwal 2002, Goldsmith and Goldsmith 2002, Blake
 et al.
2003), whereas the 
empirical study conducted by Sin and Tse (2002) showed that the relationship becomes 
insignificant. 
 
Although a positive relationship between internet usage frequency and online shopping 
intention was detected in some studies (Jarvenpaa and Todd 1996, Jarvenpaa
 et al.
1999, 
Bhatnagar
 et al.
2000b, Citrin
 et al.
2000, Liao and Cheung 2001, Park 2002, Bhatnagar and 
Ghose 2004b), the relationship was not found to be significant in the later studies (Cho 2004, 
Nysveen and Pedersen 2004). In addition to the above-mentioned factors, many other factors 
related to computer/internet experience have been identified as the potential drivers of online 
adoption. For example, Li et al. (1999) stated that internet accessibility is a key determinant 
of online shopping intention. Mauldin and Arunachalam (2002) suggested that comfort level 
with the Internet has a positive relationship with online shopping tendency. 
In general, consumers’ non-internet in-home shopping (e.g. telephone, mail, catalogue, TV) 
experience was found to increase the likelihood of purchasing online (Lohse
 et al.
2000, 
Eastin 2002, Kaufman-Scarborough and Lindquist 2002, Lunn and Suman 2002, Cho 2004). 
Specifically, Eastin (2002) noted that prior usage of the telephone for product acquisition 
positively affects consumers’ adoption of online shopping. In a similar way, a work of Lunn 
and Suman (2002) indicated that the link between previous purchases by mail and phone and 
online purchase intention is signficant. Cho (2004) and Lohse et al. (2000) pointed out that 


38
previous purchases from catalogues are significantly correlated with spending and adoption 
of online shopping (2000). In line with these studies, Kaufman-Scarborough and Lindquist 
(2002) reported that online shoppers tend to experience more non-store (catalogue and TV) 
shopping activities. However, Sin and Tse (2002) did not find such an positive relationship 
between consumers’ non-internet in-home shopping experiences and their online purchase 
intention.
2.3.2.4 Online Shopping Experience 
There is a large volume of published studies describing the role of online shopping 
experience in predicting purchase intention and actual purchase. According to Mathwick et al. 
(2001), online shopping experience is concerned with the user-friendliness and aesthetics of 
online shopping websites and the interactivity with the online vendors. Quite a few other 
shopping experience variables have been explored, including evaluated effort, compatibility 
and playfulness (Jarvenpaa and Todd 1997, Vijayasarathy and Jones 2000, Mathwick
 et al.
2001, Goldsmith 2002, Ahn
 et al.
2007, Hsu
 et al.
2011). Previous research findings with 
regard to the effects of these online shopping experience variables on behavioural outcomes 
were mixed. Three studies (Jarvenpaa and Todd 1997, Goldsmith 2002, Ahn
 et al.
2007) 
found these variables to have significant and positive effects on intention while the other two 
(Vijayasarathy and Jones 2000, Mathwick
 et al.
2001) did not show significant effects. 
Huang (2000) also included novelty in his study but only found indirect effect of novelties on 
desire to shop through desire to explore.
Some studies have concentrated on investigating the effect of internet purchase experience on 
online purchase intention (Shim
 et al.
2001, Foucault and Scheufele 2002, Goldsmith 2002, 
Goldsmith and Goldsmith 2002, Lunn and Suman 2002, Gefen 2002a, Cho 2004). Positive 


39
internet shopping experience was found to have a direct and positive association with online 
purchase intention (Shim
 et al.
2001, Lunn and Suman 2002, Cho 2004). However, the 
finding was not supported by Khalifa and Liu (2007) who reported a moderating effect of 
online shopping experience on the relationship between satisfaction and repurchase intention. 
Frequencies of online purchases and satisfaction levels about past online transactions have 
been widely investigated in past studies where positive correlations with consumers’ 
likelihood to purchase online are found. The more experienced consumers are with online 
shopping and the more satisfied they were with past online transaction experiences, the 
higher their purchases amounts and the more likely they were to be repeated purchasers 
(Koivumäki 2001, Devaraj

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