Understanding consumer online shopping behaviour from the perspective of transaction costs

3.5 CONCEPTUAL MODEL OF CONSUMER TCS OF ONLINE SHOPPING 
Drawing on the above discussion, an integrative model of consumer TCs of online shopping 
is presented in Figure 3.1. The proposed conceptual model is designed to address the research 
questions. It integrates the antecedents of consumer TCs of online shopping at an online 
store, the central variable in the model, the consequences of consumer TCs, and the mediator 
and moderators of the influence of consumer TCs on its consequences.

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H4a: 
−
H4c: 
−
H4b: 
−
H7a: 
−
H7b: 
−
H8a: 
−
H8b: 
−
Figure 3.1 An Integrative Model of Consumer TCs of online Shopping 
 
 
Online store- and product-
related characteristics 
Product Quality Concern 
Site Design 
E-Service Quality 
Reputation of Online Store
Online channel-related 
characteristics 
Perceived Convenience
Privacy and Security Concerns
Environmental Uncertainty 
Perceived 
Consumer TCs of 
Online Shopping
Online 
Purchase 
Behaviour 
Customer 
Satisfaction
Customer 
Loyalty
H5: + 
H2a: +
H2b:
−
H3a:
−
Consumer-related characteristics 
Internet Access Availability 
Perceived Internet Expertise
Online Buying Frequency
H1a:
−
H1b:
−
H1c:
−
H2d:
−
H3c: +
Age
Gender 
Income 
Education 
Consumer’s 
Risk-bearing 
Propensity 
H3b: +
H2c: 
−
Perceived 
Enjoyment of 
Online Shopping 
Control Variables

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Firstly, consumer-related characteristics (i.e., Internet access availability, Internet expertise, 
online buying frequency), online store- and product-related characteristics (i.e., product 
quality concerns, site design, e-service quality, reputation of the online store), and the general 
online channel-related characteristics (i.e., convenience, privacy and security concerns and 
environmental uncertainty) are viewed as the major antecedents of consumer TCs associated 
with transacting with an online store (see Figure 3.2). Consumer TCs refer to the costs 
occurred during online transaction process including pre-purchase, purchase and post-
purchase stages, reflecting the time and efforts consumers expend during the entire 
transaction process. They include the costs of obtaining the information necessary for making 
a purchase, the immediate costs involved in transacting with a specific online store for 
making that purchase, and the costs which arise as a consequence of transacting with the 
online store, if the transaction should subsequently go wrong. Antecedent variables are 
proposed to affect time and efforts involved in the online transaction process, thereby 
influencing consumer TCs. The next section will specifically establish their relationships with 
consumer TCs, of which the underlying rationale will be provided. 

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