Exploring Factors That Affect Usefulness, Ease of Use, Trust, and Purchase Intention in The Online Environment PDF

International Journal of Management & Information Systems First Quarter 2015
Volume 19, Number 1
Exploring Factors That Affect Usefulness,

Ease Of Use, Trust, And Purchase Intention
In The Online Environment
Yoon C. Cho, KDI School of Public Policy and Management, Korea
Esen Sagynov, Naver Corporation, Korea
ABSTRACT
Various studies have examined the effects of factors on online attitudes and behavior. By applying
the Technology Acceptance Model, this study is focused on investigating factors that affect
customers online purchasing behavior. In particular, this study examines i) effects of such factors
as product information, price, convenience, and perceived product or service quality on perceived
usefulness; ii) effects of convenience, perceived product or service quality, and desire to shop
without a salesperson on perceived ease of use; iii) effects of perceived ease of use on perceived
usefulness; iv) effects of perceived ease of use and usefulness on intentions to shop online; and v)
effects of trust on purchase intentions.
The data collected online and offline were analyzed using factor and regression analysis, and
structural equation modeling. The results of this study indicate that perceived usefulness,
perceived ease of use, and trust had a statistically significant effect on behavioral intention to
shop on the Internet.
Keywords: Product Information; Price; Convenience; Product and Service Quality; Salesperson; Perceived
Usefulness; Perceived Ease of Use; Trust; Intention to Purchase
I.
INTRODUCTION
ith the continuing growth of the Internet, various researchers have examined such differential
effects as perception, attitude, and behavioral changes on the online, so-called virtualized and
computer-mediated environment (Hoffman and Novak, 1996) compared to the offline
environment, called the marketplace. By considering technology adoption and customers or users behavioral
changes in the virtualized environment (Hoffman and Novak, 1996), previous studies examined diverse effects, such
as information searching and purchasing behavior, social networking systems, product categories, prices, and
personalized (i.e., customized or individualized) services in diverse sectors from online banking to e-government
services. Previous studies examined such factors as perceived risk and benefit influencing the adoption of Internet
banking (Lee, 2008); service-oriented technology and management (Demirkan et al., 2008); effects of consumer
perceptions of brand experiences, brand familiarity, satisfaction;, and trust on the Web (Ha and Perks, 2005);
trustworthiness of advice about seller agents in e-marketplaces (Zhang and Cohen, 2008); and changes in consumer
behavior by applying consumer informedness and an understanding of consumers pursuit of products (Clemons and
Gao, 2007). Studies also investigated applications of 2Is (i.e., interactivity and individualization) known as key
factors in the success of e-business. Macias (2003) discussed how interactivity and individual difference variables
affect the comprehensive of interactive advertising websites and acceptance of online customization (i.e.,
individualization) in e-retailing, defined by Srinivasan, Anderson, and Ponnavolu (2002, cited in Cho and Fiorito,
2009) as the ability of an e-retailer to tailor products, services, and the transactional environment to individual
customers, and the impact of online agents focusing on interactivity (Kohler, Rohm, Ruyter, and Wetzels, 2011).
Despite these and other studies, other areas remain to be explored, for example, in public sector and developing
countries that also need application of e-business models.
Copyright by author(s); CC-BY
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Purchasing a product in the online environment is an increasingly common practice for consumers
worldwide, especially in those countries with well-developed marketing infrastructures (Kau, Tang, & Ghose,
2003). Customers in all age groups use the Internet as a substitute channel for acquiring goods and services.
According to the Consumer Choice Survey conducted by Princeton Survey Research Associates International
(Horrigan, 2008), almost all Internet users (93%) have, at one time or another, done something related to ecommerce. The developmental stage of a particular country might be determined by the existence of a fully
functioning Internet marketplace - a virtualized environment in which a person can find and buy almost any product,
including fashion goods and food, for a fixed price that is less than or equal to that at an ordinary shopping center.
Existence of online payment system might indicate how well the banking sector is developed in the country.
However, for several reasons, online shopping websites encountered problems, even in developed countries, two
decades ago. First, the banking and transaction system might not successfully or conveniently provide the electronic
means for money transfer. Second, the countrywide delivery system was unsatisfactory because of time, cost, and
unreliability. Third, the people themselves were not always ready for such innovations. Other reasons include some
minorities did not have the necessary computer and Internet skills and customers simply did not have easy Internet
access. These problems are still severe in countries where the Internet is in a developing stage. To send a specific
item, a person generally needs to be able to reach the nearest post office, which requires a transportation fee as well
as travelling time. In addition, the delivery service may be a high price, discouraging the use of postal service and
possibly significantly affecting the acceptance of online shopping.
In light of these considerations, the purpose of this study is to explore the factors that influence behavioral
intentions in a certain context to shop on the Internet. The core constructs of the framework are adapted from the
well-known Technology Acceptance Model (TAM) by Davis (1989), one of the most influential extensions of Ajzen
and Fishbeins Theory of Reasoned Action (TRA) and has been proven to be suitable as a theoretical foundation for
the adoption of e-commerce by numerous researchers (Chen, Gillenson, & Sherrel, 2002; Moon & Kim, 2001;
Lederer, Maupin, Sena, & Zhuang, 2000; Agarwal & Jayesh, 1999; Gefen & Detmar, 1997; Adams, 1992). This
study addresses the main research question, What drives consumers to shop online? In particular, this study
examines i) the effects of factors such as product information, price, convenience, and perceived product or service
quality on perceived usefulness; ii) the effects of convenience, perceived product or service quality, and desire to
shop without a salesperson on perceived ease of use; iii) the effects of perceived ease of use on perceived usefulness;
iv) the effects of perceived ease of use and usefulness on intentions to shop online; and v) the effects of trust on
purchase intentions to shop online.
II.
LITERATURE REVIEW
The contemporary market encompasses a wide range of businesses and services. Some are closely involved
in electronic commerce, which is defined as purchases and sales of goods and services transacted over the Internet
(Choo & Bontis, 2002). Ever since the presence of the Internet, various studies have examined changed customers
attitudes and behavior in the online environment. Previous studies found that consumers shopping behaviors in
online stores may be different from those in traditional retail stores (Alba et al., 1997; Winer et al., 1997). The
online environment has been referred to as a virtualized, marketspace, and computer-mediated environment
(Hoffman and Novak, 1996), with no physical salesperson but web-based interaction and services based on
advanced technology and systems. Strategies have been applied online to overcome the limitations compared to
offline shopping experiences, such as adoption of online agents, personalization (i.e., individualization,
customization), interactivity, recommender systems, and payment and e-transfer systems, such as a subliminal
channel (Chen and Liu, 2009). Those advanced systems help reduce customers consideration sets, facilitating better
decision making, and making the decision-making process more efficient (Peterson and Merino, 2003; Widing and
Talarzyk, 1993).
Attitudes and behavioral intentions toward the online environment have been widely supported by the
Technology Acceptance Model (TAM) (Davis, 1989). Earlier studies of e-commerce considered how customers
adopt the technology in a computer-mediated environment. To change perceptions in e-commerce, studies addressed
customers willingness to change attitudes and behaviors by focusing on ease of use and usefulness (Davis, 1989) key variables in the TAM. Technology acceptance has been a prominent research stream in information systems for
over two decades, with the TAM and the primary constructs of perceived ease of use (EOU), perceived usefulness
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(U), and behavioral intention (BI) (Davis, 1989; Davis, Bagozzi, and Warshaw, 1989; cited in Hess, McNab, and
Basoglu, 2014). The first determinant is perceived usefulness, defined as the individuals perception that using the
new technology will enhance or improve her or his performance (Davis, 1989; Davis, Bagozzi, and Warshaw, 1989).
The second determinant - perceived ease of use - refers to the extent to which a person believes that using the new
technology will be free of effort (Davis, 1989; Davis, Bagozzi, and Warshaw, 1989). While perceived usefulness
refers to consumers perceptions regarding the outcome of the experience, perceived ease of use refers to their
perceptions regarding the process leading to the final outcome (Monsuwe, Dellaert, & Ruyter, 2004). The TAM has
been tested and validated by numerous researchers and shown to be suitable as a theoretical foundation for the
adoption of e-commerce (Chen, Gillenson, & Sherrel, 2002; Moon & Kim, 2001; Lederer, Maupin, Sena, & Zhuang,
2000; Agarwal & Jayesh, 1999; Gefen & Detmar, 1997; Adams, 1992). In addition, researchers agree it is
appropriate to draw analogies between online shopping and the components of the TAM because the model has been
widely used in the study of online user behavior and they explain why online users accept or reject websites and
how their internal beliefs and attitudes affect their usage behavior (Davis, Bagozzi, & Warshaw, 1989; Baroudi,
Olson, Ives, & Davis, 1986). The TAM, which addresses behavioral intention to use a new technology determined
by the individuals attitude toward the technology, has been applied to various situations, including banking,
information services, payment services, and so on. The TAM also has been to investigate user acceptance of
information technology (Venkatesh, Morris, Davis, and Davis, 2003), customer adoption of mobile payment
services (Thakur 2013), user acceptance of information systems (Hong, Thong, Chasalow, and Dhillon, 2011),
information system adoption and acceptance (AlShibly, 2014), consumer acceptance and use of information
technology (Venkatesh, Thong, and Xu, 2012), and consumers acceptance and use of information and
communications technology (Alwahaishi and Snasel, 2013). Studies also used the TAM to explore user attitude and
intention (Zhu, Lin, and Hsu, 2012) and behavioral intentions (Hess, McNab, and Basoglu, 2014).
Besides the functional and utilitarian dimensions of such consumer perceptions as perceived usefulness and
perceived ease of use, a more recent addition to the TAM considers an emotional and hedonic dimension of
perception - enjoyment (Menon & Kahn, 2002; Childers, Carr, Peck, & Carson, 2001). The enjoyment construct
refers to the extent to which the activity of using the new technology is perceived to provide reinforcement in its
own right, apart from any performance consequences that may be anticipated. Childers et al. (2001) supported the
idea of the dual characterization of consumers motivations, suggested by Hirschman and Holbrook (1982), which
described consumers as either problem-solvers or seekers of fun, fantasy, arousal, sensory stimulation, and
enjoyment. For problem-solvers, shopping is considered to be an errand or work, and they shop online only to
acquire a specific product or service (Babin, Darden, & Griffin, 1994). Their main concern is to purchase products
in an efficient and timely manner with the least effort. In contrast, the second category of consumers perceives
online shopping as enjoyment, looking for the potential entertainment resulting from the fun and play arising from
the Internet shopping experience. They appreciate the online shopping experience for its own sake, besides any other
consequence, such as an online purchase that may result (Holbrook, 1994). This study explores that the effects of
perceived usefulness, perceived ease of use and other constructs ultimately affect consumers intentions to shop on
the Internet.
Theoretically, technology acceptance and use of technology are supported by the unified theory of
acceptance and use of technology, which has served as a baseline model and has been applied to the study of a
variety of technologies (Venkatesh, Morris, Davis, and Davis, 2003; Venkatesh, Thong, and Xu, 2012). Technology
acceptance and attitudes toward behavior have been supported by various models and theories. The Theory of
Reasoned Action (TRA), drawn from social psychology (Fishbein and Ajzen, 1975) and indicating an individuals
performance of a given behavior, is primarily determined by his or her intention to perform that behavior (Ajzen &
Fishbein, 1980; Fishbein & Ajzen, 1975) and is applied to individual acceptance of technology (Davis, Bagozzi, &
Warshaw, 1989; Venkatesh, Morris, Davis, and Davis, 2003). The Theory of planned behavior (TPB) extended the
TRA by adding the construct of perceived behavioral control (Ajzen 1991, Taylor and Todd 1995) and the
innovation diffusion theory (IDT) grounded sociology (Rogers 1995) with a variety of innovations (Tornatzky and
Klein 1982). Uses and gratification theory addresses motivation and satisfaction for using a communication media
or technology (Katz, Blumler, and Gurevitch 1973) and also supports technology acceptance and behavior.
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III.
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HYPOTHESES DEVELOPMENT
The proposed model for this study was modified from the TAM (Davis, 1989; Davis, Bagozzi, and
Warshaw, 1989). As shown in Figure 1, this study examined i) the effects of such factors as product information,
price, convenience, and perceived product or service quality on perceived usefulness; ii) the effects of convenience,
perceived product or service quality, and desire to shop without a salesperson on perceived ease of use; iii) the
effects of perceived ease of use on perceived usefulness; iv) the effects of perceived ease of use and usefulness on
intentions to shop online; and v) the effects of trust on intention to shop online.
3.1
Effects of Perceived Usefulness
Perceived usefulness is defined as the individuals perception that using the new technology will enhance
or improve his or her performance (Davis, 1989, 1993). Applying this definition to the context of online shopping,
usefulness refers to the degree to which consumers believe using the Internet as a medium will improve their
performance or productivity, thus enhancing the outcome of their shopping experience (Monsuwe, Dellaert, &
Ruyter, 2004). Perceived usefulness is related to the outcome of the shopping experience (Monsuwe et al., 2004).
Detailed information, accessibility, and speed, as well as availability of inexpensive and convenient purchases, have
often been mentioned as the main benefits of online shopping (Khalifa & Limayem, 2003; Shim, Shin, &
Nottingham, 2002). For experienced Internet users who are busy during normal shopping hours, the accessibility and
speed of shopping may be truly useful features.
H1
Perceived
Product
Information
H3~4
Trust
H2
Price
Perception
Perceived
Usefulness
Convenience
Perception
H11
Purchase Intention
H8
Perceived
Ease of Use
Perceived Product
& Service Quality
Perceived Desire to
Shop without a
Salesperson
H9
H10
H5~6
H7
Figure 1: Modified Model Of Effects Of Factors On Perceived Usefulness, Ease Of Use,

Trust, And Intention To Purchase (Modified From Davis 1989)
3.1.1
Effects Of Perceived Product Information On Perceived Usefulness
In this study, product information is taken as a separate independent variable to analyze its influence on
perceived usefulness. One of the major differences between traditional and online stores is the amount of
information provided during shopping activities. In the offline environment, consumers are often exposed to
promotions offered by diverse media and salesperson. Many merchants prioritize individual sales over customers
loyalty; that is, a salesperson tries very hard to sell the product, particularly in personal selling, stressing product
features such as the quality and ease of use of the product. In the online environment, users can browse a great
amount of information that provides detailed characteristics of products and services. By applying advanced
systems, such as a recommender system, a collaborative filtering system, and a feedback system, online customers
can easily obtain detailed reviews and information about desired items. Online customers can also take advantage of
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publicly available complaint management web portals, such as Complaints.com, bbbonline.org (Better Business
Bureau Online), Cnet.com, and eComplaints.com, which provide customers feedback, their opinions, comments,
and product ratings.
Further, in the online environment, how customers perceive products online depends on how easily the
product quality can be determined because customers cannot see, touch, feel, or smell the products (Figueiredo,
2000). Customers rely more on product information for products, particularly in terms of the look-and-feel of goods,
so they can consider different levels of sensory attributes in terms of the look-and-feel aspect (Figueiredo, 2000;
Jung, Cho, & Lee, 2014) because they cannot physically touch the products online. Because of the limitation of the
computer-mediated environment, online customers rely more on detailed product information, which has become an
advantage of online over offline shopping and easy-to-get useful product information. Customers also use the Web
before going into the physical store to find good deals and promotions, compare prices, or find information about
sales and coupons for physical locations. Therefore, the detailed product information and a visual guide in online
shopping stores, as well as independent choices available, would positively affect consumers behavioral intentions
to shop online through perceived usefulness. Consumers purchase decision making is determined by how the
information provided from e-businesses is useful. Therefore, this study hypothesized that detailed product
information available online affects perceived usefulness.
H1: Detailed product information provided online has a positive effect on perceived usefulness.
3.1.2
Effects Of Price Perception On Perceived Usefulness
Price is unquestionably one of the most important marketplace cues (Lichtenstein, Ridgway, and
Netemeyer, 1993) and may be said to have both attracting and repelling characteristics (Monroe, 1979; cited in
Johnson and Kellaris, 1988). Lichtenstein, Ridgway, and Netemeyer (1993) stated that if the price cue is indeed a
complex stimulus, finer discriminations in consumer perceptions of both the positive and negative roles of price
appear plausible. Previous studies addressed relationships between price perception on customers attitudes and
behaviors in the online environment. Studies found that perceived cost is strictly linked to consumers attitude
toward the use of a new technology (Choe, Park, Chung, and Moon, 2009; Du, Whinston, Lu, and Liu, 2010; cited
in Pantano and Pierto, 2012). Previous studies also investigated price sensitivity (Han, Gipta, and Lehmann, 2001;
Chu, Chintagunta, and Cebollada, 2008) and price dispersion on the Internet (Pan, Ratchford, and Venkatesh, 2004).
Customers in the online environment seem to be more sensitive concerning price because of the availability of price
comparison sites that allow easy comparison of prices without fees. Online customers are sensitive to price for other
reasons, such as delivery fees, which have become negative factors in intention to shop online, and transaction fees
that depend on the market situation. Overall customers price perceptions in the online environment are lowered by
such effects as price comparison sites and efficient management of supply chain. Therefore, customers expectations
concerning price are being lowered in the online environment but are also based on how they perceive websites are
useful. Therefore, it was hypothesized that perceived lower price in the online environment affects perceived
usefulness.
H2: Perceived lower price online has a positive effect on perceived usefulness.
3.1.3
Effects Of Convenience Perception On Perceived Usefulness
The concept of convenience first appeared in marketing literature through Copelands (1923) classification
of goods and overtime. The use of the word convenience changed from a descriptor of products into its own unique
concept with an emphasis on time buying or time savings (Yale and Venkatesh, 1986, cited in Beauchamp and
Ponder, 2010). Johnson and Barbara (2002) indicated convenience appears to be a factor unique to the Internet
because of its interactive and transactional abilities. Uses and gratifications and expectancy value researchers have
identified convenience as a significant motivation for Internet use (Barbara and Johnson, 2001, cited in Johnson and
Barbara, 2002).
Online stores make huge efforts to provide the best shopping experience by encompassing the most
important and complex functionalities while delivering them in an easy and user-friendly way. Thus, the
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convenience of online shopping makes it possible to save time, avoid crowded markets, solve parking problems, and
access online stores 24 hours a day, 7 days a week, without stress and the need to carry heavy items. In fact, the top
reason (69%) for shopping online, based on a poll conducted by The Nielsen Company (www.nielsen.com), was,
when I buy online, I can shop whenever Id like. The second most cited reason (57%) was that online shopping
allows me to avoid the holiday shopping crowds at stores. For these reasons, consumers across the globe are
increasingly exchanging the experience of shopping in traditional crowded markets for one-click convenience as
online shopping becomes a safe and popular option. The Nielsen Company (www.nielsen.com) polled 26,312
participants from 48 markets: Europe, Asia Pacific, the Americas and the Middle East. According to this Global
Nielsen Consumer Report, over 85 percent of the worlds online population has used the Internet to make a
purchase, up 40% (875 million) from two years previously (627 million), and more than half of Internet users were
regular online shoppers, making online purchases at least once a month. Therefore, the convenience factor is
expected to have a strong influence on online consumers perceived usefulness of Web stores and their intention to
shop online. Thus, it is hypothesized that perceived convenience in the online environment affects perceived
usefulness.
H3: Perceived convenience provided online has a positive effect on perceived usefulness.
3.1.4
Effects Of Perceived Product And Service Quality On Perceived Usefulness
Perceived quality could be defined as the consumers judgment about a products overall excellence or
superiority (Zeithaml, 1988, cited in Bei and Chiao, 2001). Previous studies discussed perceived product and service
quality in terms of a continuum (Rathmell, 1966) by establishing relationships to satisfaction and loyalty (Bei and
Chiao, 2001). Etzion and Pang (2014) stated that online services differ from traditional services because they
promote relationship-building and interactivity among users and thus exhibit positive network effects. Referring to
service, Holbrook (1994) stated, because service excellence operates as an ideal, a standard against which
judgments are ultimately formed, delivering promises and performing functions will lead to positive perception
regarding the usefulness of online shopping and its service quality. In the online environment, perceived product
and service quality is also based on reviews that affect attitudes about product and service quality or purchase
decisions (Jensen, Averbeck, Zhang, and Wright, 2013). Thus, it is hypothesized that perceived product and service
quality in the online environment affects perceived usefulness.
H4: Perceived product and service quality provided online has a positive effect on perceived usefulness.
3.2
Effects On Perceived Ease Of Use
Perceived ease of use is defined as the individuals perception that using the new technology will be free of
effort (Davis, 1989, 1993). Applying this context to that of online shopping, ease of use refers to consumers
perceptions that shopping on the Internet will involve a minimum of effort (Davis, 1989, 1993). Whereas perceived
usefulness refers to consumers perceptions regarding the outcome of the online shopping experience, perceived
ease of use refers to their perceptions regarding the process leading to the final online shopping outcome (Monsuwe,
Dellaert, and Ruyter, 2004). In short, perceived usefulness is how effective shopping on the Internet is in helping
consumers accomplish their tasks and perceived ease of use is how easy the Internet is to use as a shopping medium
(Monsuwe, Dellaert, and Ruyter, 2004). According to the TAM, perceived ease of use has a dual effect, direct as
well as indirect, on consumers intention to shop online. The indirect effect on intention occurs through perceived
usefulness because the easier a technology is to use, the more useful it can be (Venkatesh, 2000; Dabholkar, 1996;
Davis, Bagozzi, and Warshaw, 1989).
3.2.1
Effects Of Convenience Perception On Perceived Ease Of Use
As discussed, convenience has been a key factor affecting customers attitudes and behaviors in the online
environment. Jiang, Zhilin, and Jun (2013) stated that the convenience dimension of online shopping has been one
of the principal motivations behind customers inclinations to adopt online shopping. Seiders, Berry, and Gresham
(2000) proposed that dimensions of retail shopping convenience include access, search, transaction, and possession,
all of which involve concepts of the speed and ease with which consumers can reach or engage a retailer, identify
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and select products, amend transactions, and obtain desired products. Based on these considerations, it is
hypothesized that perceived convenience in the online environment also affects perceived ease of use.
H5: Perceived convenience provided online has a positive effect on perceived ease of use.
3.2.2
Effects Of Perceived Product And Service Quality On Perceived Ease Of Use
Previous studies indicated that perceived product quality played a crucial role in purchasing choices
(Brucks, Zeithaml, and Naylor, 2000, cited in Bei and Chiao, 2001). Previous studies also discussed service quality
as a key construct in measuring consumer satisfaction and loyalty (Parasuraman, Zeithaml, and Berry, 1985; Bei and
Chiao, 2001). Product and service quality in the online environment is difficult to assess (Figueiredo 2000) because
of the virtualized space. Customers in the online environment rely on reviews (Jensen, Averbeck, Zhang, and
Wright, 2013) and word of mouth (Shen, Li, and DeMoss, 2012) to predict perceived product and service. How
easily perceived product and service quality can be determined by the Web influences ease of use and purchase
intention. Therefore, it is hypothesized that perceived product and service quality in the online environment affect
perceived ease of use.
H6: Perceived product and service quality online have a positive effect on perceived ease of use.
3.2.3
Effects Of Perceived Desire To Shop Without A Salesperson On Perceived Ease Of Use
One of the factors contributing to dissatisfaction with e-businesses in the computer-mediated environment
is the lack of a physical salesperson. To resolve the complaint of a lack of a salesperson, online businesses develop
the tools that address that limitation, such as lists of frequently asked questions with a filtering system and online
chatting service; however, these do not seem to be widely used by customers and are not actively operated by ebusinesses. Therefore, this limitation might become a major complaint, particularly for inexperienced Internet users,
customers who are willing to purchase products that require physically touching, smelling, seeing, or hearing the
products, and customers who prefer to receive a salespersons guidance. Despite concerns about the lack of a
salesperson online, customers decision-making might not rely on a salesperson. Online customers might prefer to
order products online either because they do not prefer a salespersons interference because they think online stores
might provide more objective and detailed information. Previous studies discussed the role of salespersons and task
characteristics, such as skill variety, task identity, task significance, and feedback (Teas, 1982). Consumers might
prefer to read product specifications from Web pages rather than to listen to a salesperson. Based on this
consideration, it is hypothesized that perceived desire to shop online without a salesperson positively affects
perceived ease of use.
H7: Perceived desire to shop online without a salesperson has a positive effect on perceived ease of use.
3.3
Effects Of Perceived Usefulness, Perceived Ease Of Use, And Purchase Intention
Thus far, it has been hypothesized that perceived ease of use affects perceived usefulness and purchase
intention, which has been studied in terms of why a consumer purchases a particular brand (Shah, Aziz, Jaffari,
Waris, and Ejaz, 2012). Purchase intention has been identified as the consequences of various factors, such as
attitude (Fishbein and Ajzen, 1975) and predictor of satisfaction (Taylor and Baker, 1994; Oliver, 1980). Thus, it is
hypothesized that both perceived usefulness and ease of use affect purchase intention.
H8: Perceived ease of use has a positive effect on perceived usefulness.
H9: Perceived usefulness in the online environment has a positive effect on purchase intention.
H10: Perceived ease of use in the online environment has a positive effect on purchase intention.
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3.4
Volume 19, Number 1
Effects Of Trust On Purchase Intention
One of the most frequently cited reasons for consumers not shopping on the Internet is the lack of trust (Lee
& Turban, 2001) and a level of risk. Researchers found that people rely on their general disposition to trust when in
a novel situation (Rotter, 1971). According to Doney and Cannon (1997), the most salient source of trust in a retail
setting is the salesperson with the consumer trust being dependent on the salespersons expertise, likeability, and
similarity to the customer. However, in the online environment, the role of physical salesperson is replaced by help
buttons and search features, thus removing the basis of consumer trust in the shopping experience (Lohse & Spiller,
1998). Consumers cannot physically check the quality of a product or monitor the safety and security of sending
sensitive personal and financial information while shopping on the Internet (Lee & Turban, 2001). This study
suggests that consumers trust in online stores has a positive effect on perceived usefulness. Hallegatte and Nantel
(2006) confirmed that the non-technological related construct of trust on a website affects the intention to visit a
commercial website again. Consequently, it is hypothesized that lack of trust in the online environment negatively
affects purchase intention.
H11: Lack of trust in the online environment has a negative effect on purchase intention.
IV.
METHODOLOGY
Data for this study were collected using email, a survey website, and offline. Because the research
addressed online shopping intentions, the target population included both customers who had online shopping
experience and those who had possibly used the Internet for seeking product characteristics and detailed
information. This study considered a relatively younger age group for the respondents because people in such an age
group tend to be more interested in using new technologies to find new products, search for product information,
and compare and evaluate alternatives (Wood, 2002). To reach the target population and valid participants, the
survey document and the link to the online survey were sent deliberately to people in the email contact list. Thus,
only users who fit the target group were requested to answer the questionnaire. Having answered via email, each
respondent was limited with a single chance to fill out the survey. When respondents answered the questions on the
online survey website, client-side cookie tracking and server-side session control were implemented. In addition, no
incentives were provided to further decrease the likelihood of duplicate responses. Thus, the problem of multiple
responses from the same respondent was eliminated.
4.1
Pilot Test
To develop a meaningful set of survey questions, a pilot test was conducted with a small group of fourteen
respondents; then, based on the obtained results, the current and more comprehensive survey with meaningful
questions was developed. The pilot test consisted of two parts - qualitative and quantitative. First, it was necessary to
conduct qualitative research in the form of in-depth interviews. The responses from the in-depth interviews were
supposed to form a clear foundation for further mass quantitative survey and reveal practically applicable and
essential factors that influence consumers behavioral intentions to shop online. To validate the model, the
quantitative survey was administered to the same target respondents to check consistency. The data were collected
via email. The descriptive data of the pilot test survey asked respondents whether they felt they needed an online
shopping website. Seventy percent responded with yes or absolutely yes. The statistical data indicated that perceived
usefulness and availability of detailed information had considerable effect on behavioral intention, with the latter
being stronger. The effect of wide product selection was smaller but still statistically significant. According to the
pilot test, the need for a salespersons help was expected to have a significant effect on behavioral intention of
consumers to shop online.
4.2
Main Study
This study used a 7-point scale for respondents opinions, ranging from 1 (strongly disagree) to 7 (strongly
agree). Two hundred sixteen responses were unique and valid, with a response rate of 80%. Descriptive statistics
indicate that respondents were almost equally dispersed according to gender. According to the descriptive statistics
gathered as a result of this survey, 76.39% had bachelor degrees or were currently pursuing such degrees, and
21.76% possessed a masters degree or were studying in the masters programs. Socioeconomically the subjects
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were divided into two major groups, those who are students (61.57%), and those who work as middle level
employees (28.24%), indicating they were recent graduates. Most respondents (93.52%) considered themselves
intermediate (29.17%), upper-intermediate (32.87%), or advanced (31.48%) online users. A very high percentage
(90.28%) of the respondents accessed the Web daily (63.43%) or at least several times a week (26.85%). They
accessed the Internet from home (53.70%), school (37.50%), the office (36.57%) or Internet shops (45.83%), or
through their mobile phones (3.24%). When subjects with online shopping experience were asked how satisfied they
were with such experiences, 11.92% indicated dissatisfaction. At the same time, among the total number of
respondents in this survey, most (79.63%) were quite satisfied with their offline shopping.
V.
RESULTS
The results of the construct reliability test, which includes Cronbachs alpha and a convergent validity test
(principal component analysis with Varimax rotation and Kaiser normalization), are shown in Table 1. The alpha
coefficients of perceived usefulness (PU), perceived ease of use (PEOU), lack of trust (TRUST), price perception
(PRICE), perceived product information (INFO), perceived product and service quality (SERV), and convenience
perception (CONV) are higher than 0.7, which is considered acceptable. These results indicate the items have
relatively high internal consistency. Moreover, the factor loadings of above 0.5 are considered practically significant
(Hair, 1998). Cronbachs alpha coefficients do not exceed 0.95, indicating items are not redundant. The construct
and convergent validity measures of the variable, perceived desire to shop without a salesperson (DESIRE) are
relatively low, but according to previous studies, modest reliability of .60 or .50 will suffice (Nunnally, 1978).
Construct
Table 1: Reliability And Convergent Validity Of Construct

Cronbach Alpha
Perceived Usefulness (PU)
.895
Perceived Ease of Use (PEOU)
.922
Lack of Trust (TRUST)
.718
Price Perception (PRICE)
.706
Perceived Product Information (INFO)
.769
Perceived Desire to Shop without a Salesperson

(DESIRE)
.679
Perceived Product & Service Quality (SERV)
.832
Convenience Perception (CONV)
.789
Factor Loadings
.826
.856
.882
.831
.827
.831
.897
.888
.919
.769
.733
.822
.808
.766
.819
.887
.885
.781
.726
.827
.787
.715
.834
.837
.833
.732
.698
.705
Further, the research model was tested with structural equation modeling. As shown in Table 2, perceived
product information, price perception, convenience perception, and perceived service and product quality all had
statistically significant positive effects on perceived usefulness. Therefore, hypotheses 1~4 were accepted.
Convenience perception, perceived service and product quality, and perceived desire to shop without a salesperson
had a statistically significant positive effect on perceived ease of use. Therefore, hypotheses 5~7 were also accepted.
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Table 2: Effects Of Factors On Perceived Usefulness And Ease Of Use
B
SE
Beta
t
.217
.050
.217
4.298***
.076
.046
.076
1.663*
.281
.054
.281
5.175***
.259
.051
.259
5.127***
PRICE
INFO
SERV
CONV
Volume 19, Number 1
Perceive usefulness
R2 = .632
DESIRE
.113
.060
.113
1.898*
Perceived ease of use
SERV
.345
.066
.345
5.246***
R2 = .356
CONV
.297
.062
.297
4.801***
Note. PRICE = price perception; INFO = perceived product and service information; SERV = service & product quality; CONV
= convenience of online shopping; DESIRE = perceived desire to shop without a salesperson;
***
p =< .001. **p =< .005. *p =< .05.
As shown in Table 3, this study also found that effects of perceived ease of use on perceived usefulness
(H8) was accepted at alpha 0.001. As hypothesized, perceived usefulness and perceived ease of use had a
statistically significant positive effect on behavioral intention to shop online (H9 and 10: see Table 4). Finally, lack
of trust had a significant negative effect on purchase intention to shop online (H11: see Table 5).
Table 3: Effects Of Perceived Ease Of Use On Perceived Usefulness
B
SE
Beta
t
.620
.054
.620
11.562***
PEOU
Note. PEOU = Perceived Ease of Use*

***
p =< .001.
Perceive Usefulness
R2 = .385
Table 4: Effects Of Perceived Usefulness And Ease Of Use On Purchase Intention

B
SE
Beta
t
PEOU
.325
.146
.179
2.231*
Intention to shop online
PU
.470
.146
.258
3.218***
R2 = .156
Note. PEOU = Perceived Ease of Use; PU = Perceived Usefulness
***
p =< .001. *p =< .05.
B
-.355
TRUST
Table 5: Effects Of Trust On Purchase Intention

SE
Beta
t
.122
-.195
-2.915**
Intention to shop online

R2 = .038
Note. TRUST = trust

**
p =< .005
VI.
CONCLUSION
The purpose of this study was to investigate i) the effects of such factors as product information, price,
convenience, and perceived product or service quality on perceived usefulness; ii) the effects of convenience,
perceived product or service quality, and desire to shop without a salesperson on perceived ease of use; iii) the
effects of perceived ease of use on perceived usefulness; iv) the effects of perceived ease of use and usefulness on
intentions to shop online; and v) the effects of trust on purchase intentions. This study found that proposed factors
affecting perceived usefulness and ease of use are significant. Among the results, this study also found that
consumers perceived ease of use of online stores is positively related to their intention to shop online. This finding
supports prior research which was based on offline shopping environment (Arnold, 1977) indicating that ease of
navigation through the online store and a fast checkout process are important factors in attracting customers to shop
online. Perceived usefulness also had a statistically significant effect on customers behavioral intention to shop
online. Lack of trust, as mentioned by numerous researchers, had a statistically significant negative effect on
intention to shop online. The present study shows that perceived usefulness had slightly greater effect on consumers
purchase intention to shop online than did perceived ease of use, a finding similar to those of most TAM studies.
Lack of trust was one of the major constructs in this research model that negatively affected buyers intentions to
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Volume 19, Number 1
purchase products online. Because lack of trust had a statistically significant negative effect on purchase intention,
various trust-building factors should be considered when designing and developing online shopping stores. This
study indicated that to build trust in their online stores, businesses should leverage the established brands and thirdparty trust marks. The results of the study also find that price perception significantly affects perceived usefulness. If
online stores sell products with lower prices than brick-and-mortar stores, people are likely to perceive online stores
as useful. Companies should also note that customers who intend to shop online rely on detailed product information
due to reasons such as computer-mediated environment where customers cannot easily judge the quality of the
products (Figueiredo, 2000). More applications of advanced systems, such as customized recommender and
collaborative filtering, will help enhance usefulness and ease of use.
This study had limitations. This study did not consider other important aspects of consumer behavior such
as prior online shopping experience, social impact, and risk and enjoyment factors. Further research needs to address
these constructs. Further research should also consider a larger sample size to increase reliability. The results of this
study have the following implications. First, research findings indicate potential customers acceptance levels of
online shopping, whether they are ready for the adoption of changed lifestyle and, if not, what encourages and
discourages them from shopping on the Internet. Second, necessary strategies for businesses to implement are
proposed, along with approaches they can use to enhance online environment. Third, these findings can predict
behavioral intentions of consumers in the market environment, even where the concept of e-commerce is not mature
yet. Last, this study serves as a basis for further research on e-commerce by providing further applications through
adopting advanced technologies for increased levels of attitudes, behaviors, and satisfaction. The study could expand
to the less developed areas of research, such as in the public sector and in developing countries. E-business models
should also be integrated in further issues (Chhabra and Kumar, 2009), such as customer relationship management
by applying new models based on advanced technology.
AUTHOR INFORMATION
Professor Cho is a professor at the KDI School of Public Policy and Management in Seoul, Korea. She published
research papers in the various academic journals such as Journal of Business Research (JBR), Advances in
Consumer Research (ACR), Journal of Business & Economics Research (JBER), etc. E-mail:
[email protected]. (Corresponding author).
Esen Sagynov received a Masters degree from the KDI School of Public Policy and Management. He is currently
working at Naver Corporation. E-mail: [email protected].
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35
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Volume 19, Number 1
NOTES
36
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International Journal of Management & Information Systems First Quarter 2015

Volume 19, Number 1