Understanding consumer online shopping behaviour from the perspective of transaction costs



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6.5 RECOMMENDATIONS FOR FUTURE STUDY 
While this study offers valuable insights into the important phenomenon of consumer TCs of 
online shopping as outlined above, there are many other fruitful avenues for further research.
Firstly, future research could replicate the current study using real data collected from online 
vendors. Online vendors in China like Taobao.com, JuMei.com or Dangdang.com are large e-


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commerce companies. It would be of great interest to see how well the results of this study fit 
the real business operation, from the perspective of online vendors. 
Secondly, it is obvious that a cross-sectional research design does not provide as much 
insight as does a longitudinal research design while studying the dynamics of TCs, their 
antecedent variables and outcomes. For this reason, it may be appropriate to adopt a 
longitudinal study together with interviews to collect a richer set of data to further analyse the 
time sequence of the relationships among constructs.
Thirdly, in regard to the measurement model, the two hypothesized antecedent variables - 
online store design and environmental uncertainty did not show satisfactory discriminant 
validity, thus, they were eliminated from analyses of hypotheses testing. There may be a 
need for future research in refining the measurement scale for these two constructs. In 
addition, this study has been the initial endeavour to develop and implement the measurement 
scales for consumer TCs of online shopping, thus, future research should call for suitable 
amendments to the scale. 
Fourthly, additional research efforts should be conducted to examine the roles of the three 
subtypes of consumer TCs in greater detail. For instance, how do pre-TCs, contemporaneous 
TCs, and post-TCs affect online behaviour, respectively? Does customer satisfaction mediate 
the relationships between each type of consumer TCs and loyalty in the same way that 
customer satisfaction mediates the relationship between TCs as a whole and loyalty? The 
researcher encourages future study in her line of enquiry to examine how these distinct TCs 
differentially affect consumer behaviour in the online B2C context. 


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Fifthly, the study did not theoretically examine the relative importance of the seven 
antecedents that significantly influence TCs although empirical results regarding that are 
provided and discussed. Future studies may be needed to theoretically investigate why e-
service quality has the strongest effect on TCs, online buying frequency is the second 
strongest predictor, perceived Internet expertise is third strongest, and Internet access 
availability is the weakest. 
Sixthly, the empirical test failed to support the moderating role of the consumer’s risk-
bearing propensity in the relationship between TCs and online purchase behaviour. The 
problem might lie in the measurement scales used in the study. However, there is a possibility 
that the risk-bearing propensity is actually not a moderator of the consumer TCs – online 
purchase relationship. Customers will purchase from an online store where they perceive the 
lowest TCs and there will be no difference between risk-takers and risk-averse consumers. 
TCs would be the only criteria for them to make the purchase decision. Their purchasing 
decision-making has nothing to do with their inherent risk-bearing propensity. Future 
research is encouraged to further test the role of the consumer’s risk-bearing propensity in the 
relationship between TCs and purchase behaviour. Likewise, due to the insignificant role of 
perceived enjoyment of online shopping in affecting the relationship between TCs and loyalty, 
future research should investigate this issue. 
Seventhly, although the proposed integrative model aims to understand consumer TC 
mechanisms in the online shopping environment, it is not limited to consumer- online vendor 
relationships only. Although not explicitly stated, when constructing the integrative model, 
the researcher attempted to develop a general consumer TC model which includes the 
antecedents and consequences of consumer TCs, and the key mediator(s) and moderator(s) 


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between consumer TCs and outcome variables. This general model can probably be applied 
to other relationship contexts such as consumer-to-consumer relationships and consumer-to-
government relationships. However, the key antecedents of consumer TCs may need to be 
modified to suit the particular relationship context being studied. As a result, replication of 
this study in other relationship contexts is necessary before the results can be generalized.
In addition, future study can re-test the current research model in the context of different 
forms or characteristics of the shopping sites. For example, future research could examine 
what type of online store site is more attractive and why they are more appropriate for 
marketing certain type of goods. Such research will help online vendors better allocate their 
resources and develop appropriate marketing strategies. As different sites have different 
attributes, the effects of various web attributes on TCs should be investigated, which will 
generate knowledge that helps online firms to design site interface, select proper products 
selling on the sites, and modify product characteristics to make them suit the style of the site.
Next, further research should be conducted to apply the model to new environments of B2C 
e-commerce. In the recent years, iPhones, iPads and other handheld devices for downloading 
and later listening/watching to music, films and even books have gained popularity. It would 
be of interest to see how well the results of this study fit new technological advances and 
environments as opposed to the traditional e-commerce of buying apparel or books.
At last, as acknowledged in the limitation section, the examination of the integrative model of 
consumer TCs of online shopping in other countries can expand the understanding in 
different cultural settings, in general, on this topic. A cross-cultural study is necessary 
because people affected by different cultural values may exhibit different level of perceived 


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TCs and online behaviour. Different results may be found. Therefore, it is recommended that 
future research should expand the boundary to online firms in more emerging or developed 
economies in order to verify the validity of the model established in this study. Future study 
can also consider conducting a comparison study in different countries. Special attention still 
needs to be paid to the use of homogeneous groups in cross-cultural study.

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