IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v67y2014i1p2768-2776.html
   My bibliography  Save this article

Perceived value, transaction cost, and repurchase-intention in online shopping: A relational exchange perspective

Author

Listed:
  • Wu, Lei-Yu
  • Chen, Kuan-Yang
  • Chen, Po-Yuan
  • Cheng, Shu-Ling

Abstract

This study proposes a framework to understand the impacts of both value-related and transaction cost-related factors on repurchase intention from online shoppers' perspective. In particular, this study defines the construct of cost as a three-component conceptualization (i.e., information searching cost, moral hazard cost, and specific asset investment). Based upon empirical evidence on a survey of 887 online shoppers, this study shows that consumers' perceived value and each cost component are positively related to repurchase intention. Importantly, information searching cost exerts the most significant influence on repurchase intentions among the four relational factors. The result suggests that providing sufficient cues to reduce consumers' information searching cost is the core element of repurchase intention formation. This article closes with theoretical and practical implications.

Suggested Citation

  • Wu, Lei-Yu & Chen, Kuan-Yang & Chen, Po-Yuan & Cheng, Shu-Ling, 2014. "Perceived value, transaction cost, and repurchase-intention in online shopping: A relational exchange perspective," Journal of Business Research, Elsevier, vol. 67(1), pages 2768-2776.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:1:p:2768-2776
    DOI: 10.1016/j.jbusres.2012.09.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296312002433
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2012.09.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pei-Yu (Sharon) Chen & Lorin M. Hitt, 2002. "Measuring Switching Costs and the Determinants of Customer Retention in Internet-Enabled Businesses: A Study of the Online Brokerage Industry," Information Systems Research, INFORMS, vol. 13(3), pages 255-274, September.
    2. Frenzen, Jonathan & Nakamoto, Kent, 1993. "Structure, Cooperation, and the Flow of Market Information," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(3), pages 360-375, December.
    3. Celsi, Richard L & Olson, Jerry C, 1988. "The Role of Involvement in Attention and Comprehension Processes," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 210-224, September.
    4. Keller, Kevin Lane, 2003. "Brand Synthesis: The Multidimensionality of Brand Knowledge," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(4), pages 595-600, March.
    5. Biswas, Dipayan, 2004. "Economics of information in the Web economy: Towards a new theory?," Journal of Business Research, Elsevier, vol. 57(7), pages 724-733, July.
    6. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    7. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    8. Jones, Michael A. & Mothersbaugh, David L. & Beatty, Sharon E., 2002. "Why customers stay: measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes," Journal of Business Research, Elsevier, vol. 55(6), pages 441-450, June.
    9. Kivetz, Ran & Simonson, Itamar, 2003. "The Role of Effort Advantage in Consumer Response to Loyalty Programs: The Idiosyncratic Fit Heuristic," Research Papers 1738r, Stanford University, Graduate School of Business.
    10. Gerald Häubl & Valerie Trifts, 2000. "Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids," Marketing Science, INFORMS, vol. 19(1), pages 4-21, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soumya Ray & Sung S. Kim & James G. Morris, 2012. "Research Note ---Online Users' Switching Costs: Their Nature and Formation," Information Systems Research, INFORMS, vol. 23(1), pages 197-213, March.
    2. Xin Xu & James Y. L. Thong & Viswanath Venkatesh, 2014. "Effects of ICT Service Innovation and Complementary Strategies on Brand Equity and Customer Loyalty in a Consumer Technology Market," Information Systems Research, INFORMS, vol. 25(4), pages 710-729, December.
    3. Teresa Barros & Paula Rodrigues & Nelson Duarte & Xue-Feng Shao & F. V. Martins & H. Barandas-Karl & Xiao-Guang Yue, 2020. "The Impact of Brand Relationships on Corporate Brand Identity and Reputation—An Integrative Model," JRFM, MDPI, vol. 13(6), pages 1-21, June.
    4. Deli Yang & Mahmut Sonmez & Mario Gonzalez & Yi Liu & Carol Y. Yoder, 2019. "Consumer-based brand equity and consumer-based brand performance: evidence from smartphone brands in the USA," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 717-732, November.
    5. Torres, Anna & Tribó, Josep A., 2011. "Customer satisfaction and brand equity," Journal of Business Research, Elsevier, vol. 64(10), pages 1089-1096, October.
    6. Kevin Lane Keller, 2016. "Reflections on customer-based brand equity: perspectives, progress, and priorities," AMS Review, Springer;Academy of Marketing Science, vol. 6(1), pages 1-16, June.
    7. Chen Yang & Jing Hu, 2022. "When do consumers prefer AI-enabled customer service? The interaction effect of brand personality and service provision type on brand attitudes and purchase intentions," Journal of Brand Management, Palgrave Macmillan, vol. 29(2), pages 167-189, March.
    8. Sriram Thirumalai & Kingshuk K. Sinha, 2013. "To Personalize or Not to Personalize Online Purchase Interactions: Implications of Self-Selection by Retailers," Information Systems Research, INFORMS, vol. 24(3), pages 683-708, September.
    9. Liu, Matthew Tingchi & Wong, IpKin Anthony & Tseng, Ting-Hsiang & Chang, Angela Wen-Yu & Phau, Ian, 2017. "Applying consumer-based brand equity in luxury hotel branding," Journal of Business Research, Elsevier, vol. 81(C), pages 192-202.
    10. Woo Gon Kim & Meehee Cho & Daekwan Kim & Geon-Cheol Shin, 2014. "The Effect of Price Dispersion on hOtel Performance," Tourism Economics, , vol. 20(6), pages 1159-1179, December.
    11. Ramaswamy, Venkat & Ozcan, Kerimcan, 2016. "Brand value co-creation in a digitalized world: An integrative framework and research implications," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 93-106.
    12. Boehm, Martin, 2008. "Determining the impact of internet channel use on a customer's lifetime," Journal of Interactive Marketing, Elsevier, vol. 22(3), pages 2-22.
    13. Torres, Anna & Bijmolt, Tammo H.A. & Tribó, Josep A. & Verhoef, Peter, 2012. "Generating global brand equity through corporate social responsibility to key stakeholders," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 13-24.
    14. Keeling, Kathleen A. & McGoldrick, Peter J. & Sadhu, Henna, 2013. "Staff Word-of-Mouth (SWOM) and retail employee recruitment," Journal of Retailing, Elsevier, vol. 89(1), pages 88-104.
    15. MinJae Lee & JinKyu Lee, 2012. "The impact of information security failure on customer behaviors: A study on a large-scale hacking incident on the internet," Information Systems Frontiers, Springer, vol. 14(2), pages 375-393, April.
    16. Thomas P. Novak & Donna L. Hoffman & Yiu-Fai Yung, 2000. "Measuring the Customer Experience in Online Environments: A Structural Modeling Approach," Marketing Science, INFORMS, vol. 19(1), pages 22-42, May.
    17. Ulla A. Saari & Rupert J. Baumgartner & Saku J. Mäkinen, 2017. "Eco-Friendly Brands to Drive Sustainable Development: Replication and Extension of the Brand Experience Scale in a Cross-National Context," Sustainability, MDPI, vol. 9(7), pages 1-26, July.
    18. van Rijnsoever, Frank J. & Castaldi, Carolina & Dijst, Martin J., 2012. "In what sequence are information sources consulted by involved consumers? The case of automobile pre-purchase search," Journal of Retailing and Consumer Services, Elsevier, vol. 19(3), pages 343-352.
    19. Jiang, Kai & Luk, Sherriff Ting-kwong & Cardinali, Silvio, 2018. "The role of pre-consumption experience in perceived value of retailer brands: Consumers' experience from emerging markets," Journal of Business Research, Elsevier, vol. 86(C), pages 374-385.
    20. Garima Sharma & Pravin Kumar, 2021. "An Analysis of Causal Relationships Among the Factors Affecting the Performance of a Service Organization," SAGE Open, , vol. 11(1), pages 21582440219, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:67:y:2014:i:1:p:2768-2776. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.