Understanding consumer online shopping behaviour from the perspective of transaction costs

Table 5.22 Direct, Indirect and Total Effects 
 
 
 
 
Availability 
of Internet 
Access 
 
Perceived 
Internet 
Expertise 
 
Online 
Buying 
frequency 
 
Product 
Quality 
Concerns 
E-Service 
Quality 
 
Reputation 
of Online 
Store 
 
Perceived 
Convenience 
 
Privacy/ 
Security 
Concerns 
 
Age Gender Income Education 
Level 
Consumer 
TCs 
 
Customer 
Satisfaction 
Standardized Direct Effects
Consumer TCs
 
-.052 -.116 -.228 .057 -.482 
-.074 
-.087 
.048 .023 
-.008 -.007 -.011 
Customer Satisfaction
 
-.875
Online Purchase Behaviour
 
-.834
Customer Loyalty
 
-.563 
.334 
Standardized Indirect Effects
Consumer TCs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Satisfaction
 
.045 .102 .199 -.050 .421 
.065 
.076 -.042 
-.020 
.007 .006 .009 
 
Online Purchase Behaviour
 
.043 .097 .190 -.048 .402 
.062 
.073 -.040 
-.019 
.007 .006 .009 
 
Customer Loyalty
 
.044 .099 .195 -.049 .412 
.063 
.074 -.041 
-.019 
.007 .006 .009 -.292 
 
Standardized Total Effects
 
Consumer TCs
 
-.052 -.116 -.228 .057 -.482 
-.074 
-.087 .048 
.023 
-.008 
-.007 
-.011
Customer Satisfaction
 
.045 .102 .199 -.050 .421 
.065 
.076 -.042 
-.020 
.007 
.006 
.009 
-.875
Online Purchase Behaviour
 
.043 .097 .190 -.048 .402 
.062 
.073 -.040 
-.019 
.007 
.006 
.009 
-.834
Customer Loyalty
 
.044 .099 .195 -.049 .412 
.063 
.074 
-.041 -.019 .007 .006 .009 -.855 
.334 

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5.7.5 Summary of Results – H1a to H5 
 
The preceding analysis of the proposed model shown in Figure 5.2 provided support for most 
of the hypotheses. The results of hypotheses testing are summarised in Table 5.23.
Table 5.23 Results of Hypotheses Testing 
 
No. Hypothesis 
Result 
H1a 
Internet access availability is negatively related to a customer’s perceived TCs 
associated with online shopping. 
Supported 
H1b 
A customer’s perceived Internet expertise is negatively related to his/her perceived 
TCs associated with online shopping. 
Supported 
H1c 
A customer’s online buying frequency is negatively related to his/her perceived 
TCs associated with online shopping. 
Supported 
H2a 
A customer’s concern over the product quality in an online store is positively 
related to his/her perceived TCs associated with purchasing from the online store. 
Supported 
H2c 
A customer’s perception of the e-service quality of an online store is negatively 
related to his/her perceived TCs associated with purchasing from the online store. 
Supported 
H2d 
A customer’s perception of the reputation of an online store is negatively related 
to his/her perceived TCs associated with purchasing from the online store. 
Supported 
H3a 
The perceived convenience of online shopping is negatively related to a 
customer’s perception of TCs associated with online shopping. 
Supported 
H3b 
A customer’s privacy and security concerns over online shopping are positively 
related to his/her perceived TCs associated with online shopping. 
Not 
supported 
H4a 
A customer’s perception of TCs associated with purchasing from an online store is 
negatively related to his/her actual online purchase behaviour at the online store. 
Supported 
H4b 
A customer’s perception of TCs associated with purchasing from an online store is 
negatively related to his/her loyalty towards the online store. 
Supported 
H4c 
A customer’s perception of TCs associated with purchasing from an online store is 
negatively related to his/her satisfaction with the online store. 
Supported 
H5 
A customer’s satisfaction with an online store is positively related his/her loyalty 
towards the online store. 
Supported 

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The analysis thus far has addressed hypotheses H1a to H5. The next hypothesis of this study 
(H6) postulates that customer satisfaction with the online vendor will partially mediate the 
effect of consumer TCs on loyalty. The ensuing analysis is presented to address this 
hypothesis.