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The moderating effect of customer perceived value on online shopping behaviour

Hsin Hsin Chang, Hsin‐Wei Wang,
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Moderating effect
The moderating effect of of customer
customer perceived value on perceived value
online shopping behaviour
333
Hsin Hsin Chang and Hsin-Wei Wang
Department of Business Administration, National Cheng Kung University, Refereed article received
Tainan, Taiwan 22 August 2009
Approved for publication
13 October 2010
Abstract
Purpose – The purpose of this research is to examine the impact of e-service quality, customer
perceived value, and customer satisfaction on customer loyalty in an online shopping environment.
Design/methodology/approach – There were two studies performed in this research. Study 1
validated the self-regulating processes; Study 2 tested the moderating effects of customer perceived
value between satisfaction and loyalty. Structural equation modelling techniques and linear
hierarchical regression models were used to test the causal model.
Findings – The study demonstrated that e-service quality and customer perceived value influence
customer satisfaction, and then influence customer loyalty. In addition this study found that customers
with a high perceived value have a stronger relationship between satisfaction and customer loyalty
than customers with a low perceived value.
Research limitations/implications – We found that there are emotional and rational routes
influencing customer loyalty in the online shopping process. This will contribute to other research that
clarifies the influencing process of online shoppers’ motivation and behaviour.
Practical implications – In the pre-purchase stage, online retailers should focus on attracting
consumers by the quality of e-service. In the purchase stage, online retailers should address the
emotional factors, such as customer satisfaction. In the post-purchase stage, rational factors – such as
customer perceived value – play important roles because they can strengthen the relationship between
satisfaction and loyalty.
Originality/value – This study viewed the purchase process as a different stage as consumers may
make a choice at each of the purchase stages. Moreover this study found a way to examine the
relationship between customer satisfaction and loyalty by exploring the moderating effects of
customer perceived value.
Keywords Electronic service quality, Customer perceived value, Satisfaction, Loyalty,
Internet marketing, Perception, Value added
Paper type Research paper
Introduction
The business-to-customer (B2C) online market has been growing rapidly and changing
business patterns over the past several years. In the USA online retail sales are
estimated to have grown from $172bn in 2005 to $329bn in 2010 ( Johnson, 2005); thus,
electronic marketing activities have drawn a lot of attention. E-commerce changes the
business pattern, with manufacturers, distributors, and customers using the internet as Online Information Review
Vol. 35 No. 3, 2011
a tool for communication, and transactions have been creating new platforms for a pp. 333-359
competitive strategy (Celuch et al., 2007). Therefore an understanding of how q Emerald Group Publishing Limited
1468-4527
consumers leverage the features of the internet to make purchasing decisions in the DOI 10.1108/14684521111151414
OIR e-commerce environment would help managers devise suitable marketing strategies
35,3 (Wu and Lin, 2006).
Online shopping exhibits different characteristics from traditional shopping (Burke,
2002; Eroglu et al., 2003; Koernig, 2003). Online shopping can offer greater product
selection, accessibility and convenience without the restrictions of time and space
(Brynjolfsson and Smith, 2000). There are also fewer tangible and intangible
334 transaction costs in an online shopping process, such as product searches, price
comparisons and transportation, which result in higher shopping convenience values
(Blake et al., 2005; Childers et al., 2001; Grewal et al., 2004) than those of traditional
shopping. Customer loyalty has been recognised as one of the important factors in
creating profitability for companies. However in online environments it is more
complicated to establish a social connection between firms and customers due to the
lack of a physical environment, social distances between companies and customers
(Schijns, 2003) and anonymous and automated shopping contexts (Head et al., 2001).
Furthermore consumers can compare competing products and services with minimal
expenditure of personal time or effort, which results in competitive business markets
and lower brand loyalty (Srinivasan et al., 2002). Therefore, this study intends to
explore the determinants of loyalty in an online shopping environment.
Customer perceived value has recently received considerable attention in the field of
marketing strategy (Ulaga and Eggert, 2006). This is because it plays an important role
in predicting purchase behaviour (Chen and Dubinsky, 2003), achieves sustainable
competitive advantages (Khalifa, 2004; Lindgreen and Wynstra, 2005), and affects
relationship management (Payne et al., 2001). E-commerce research should pay special
attention to the motivations or desired values behind consumers’ use of the online
medium (Cowles et al., 2002). In an online environment customers can easily find
alternatives, and therefore how to build long-term relationships presents a more
difficult challenge for an e-commerce firm. Perceived value contributes to the loyalty of
an electronic business by reducing an individual’s need to seek alternative service
providers (Anderson and Srinivasan, 2003). Most studies have examined customer
value in the context of offline rather than online consumer behaviour (Overby and Lee,
2006). Although customer perceived value in the online shopping environment is of
crucial importance, previous studies have neglected that variable (Chang et al., 2005).
Hence it is necessary to understand the role of customer perceived value in online
shopping behaviour.
Although there is a large body of evidence from e-commerce contexts that supports
the notion that higher levels of overall customer satisfaction generate higher levels of
loyalty (Anderson and Srinivasan, 2003; Chiou, 2004; Tsai et al., 2006), some
researchers believe that the relationship between satisfaction and loyalty may be
influenced by perceived value (Anderson and Srinivasan, 2003). Others believe that
perceived value is only a psychological process between customer satisfaction and
loyalty (Chiou, 2004; Devaraj et al., 2002; Szymanski and Hise, 2000). Therefore this
study intends to explore whether a moderating effect of perceived value between
customer satisfaction and loyalty exists.
Previous marketing studies have pointed out that service quality, perceived value
and customer satisfaction are important success factors in gaining competitive
advantage (Zeithaml et al., 1996; Parasuraman et al., 1988; Patterson and Spreng, 1997;
Khatibi et al., 2002; Landrum and Prybutok, 2004; Yang and Peterson, 2004; Yu et al.,
2005). Among these factors, some are emotional variables and some are rational Moderating effect
variables, which lead to distinct routes or processes of influencing consumer loyalty, of customer
i.e. emotional decision processes and rational decision processes. Although previous
studies have examined the relationships between these constructs, they neglect to perceived value
explain what type of influencing route or process is the most effective one in
influencing consumer loyalty. Moreover consumers may change their minds and
switch from one shop to another at different purchase stages (Frambach et al., 2007; 335
Choudhury and Karahanna, 2008). Therefore understanding the dynamics of influence
processes on customer loyalty can assist companies to make better decisions regarding
different consumer purchase stages.
Among the factors influencing consumer loyalty, consumer satisfaction has
considerable impact on customer loyalty (Castaneda et al., 2009). Although this

relationship between consumer satisfaction and loyalty is intuitive, few studies explore
how to strengthen it. In an online environment, even if consumers are satisfied by a
specific website, they are still likely to find alternative sites and switch to them.
Because consumers can easily compare information and find other websites that
provide similar products or services (Anderson and Srinivasan, 2003; Terblanche and
Boshoff, 2010), the relationship between consumer satisfaction and loyalty is weaker
than in offline shops. However past studies have not attached importance to this issue.
Therefore this study aims to find a variable to strengthen the relationship, such as
customer perceived value.
Bagozzi’s (1992) self-regulatory process explains consumer behaviour in three parts:
(1) the appraisal process (the evaluation of internal or situational conditions as they
apply to one’s wellbeing);
(2) emotional reactions (satisfaction); and
(3) coping responses (behaviour).
In this research we adopt this process to clarify online shopping behaviour. The
objectives of this research are:
.
to examine the sequence and relationships of the customer behaviour process,
including the appraisal process (e-service quality, customer perceived value),
emotional reactions (satisfaction), and coping responses (loyalty) and find
different routes to influence customer loyalty across different purchase stages;
and
.
to explore the moderating effect of customer perceived value on the relationship
between customer satisfaction and customer loyalty.
Theoretical framework
E-service quality
Service quality is generally defined as the difference between expected service and
perceived service (Gronroos, 1982; Parasuraman et al., 1988, 1991). The
conceptualisation of service quality has its roots in the expectancy disconfirmation
theory (Collier and Bienstock, 2006), so the evaluation of service quality results from
comparing the perception of service received to prior expectations of what that service
should provide (Choi et al., 2004). Today the internet has become a critical channel for
the sale of most goods and services (Zeithaml et al., 2002; Teo, 2006), but the traditional
OIR service quality dimensions cannot directly be applied to internet retailing, because they
35,3 represent a different and unique service delivery process. For example consumers can
compare a product’s technical features and price more easily through internet channels
than traditional channels (Santos, 2003; Warden et al., 2006; Teo, 2006). Generally,
online customers always expect equal or higher levels of service quality than
traditional channel customers (Lee and Lin, 2005). Therefore understanding the key
336 determinants of the success of online retailers is important. Most electronic commerce
companies are beginning to realise the importance of e-service quality in determining
the success or failure of online retail businesses (Yang and Jun, 2002; Zeithaml et al.,
2002; Santos, 2003; Jun et al., 2004).
According to Zeithaml et al. (2002, p. 363) e-service quality is defined as “the extent
to which a website facilitates efficient and effective shopping, purchasing, and delivery
of products and services”. Service is broadly defined to include both pre-web and
post-website service aspects. Numerous researchers have developed scales to measure
how customers assess e-service quality. For example Lee and Lin (2005) identified the
main factors influencing customer perception of the e-service quality in online
shopping: website design (degree of user friendliness), reliability (reliability and
security), responsiveness (responsiveness and helpfulness), trust (trust mechanisms
provided by an website), and personalisation (differentiating services to satisfy specific
individual needs). Loiacono et al. (2000) established a scale called WEBQUAL with 12
dimensions:
(1) informational fit to task;
(2) interaction;
(3) trust;
(4) response time;
(5) design;
(6) intuitiveness;
(7) visual appeal;
(8) innovativeness;
(9) flow;
(10) integrated communication;
(11) business processes, and
(12) substitutability.
Overall these WEBQUAL dimensions are more pertinent to interface design than to
service quality measurement (Zeithaml et al., 2002).
In order to consider the customer-to-employee interaction aspect, other studies have
developed more complete measurements of e-service quality. For example
Wolfinbarger and Gilly (2003) used online and offline focus groups, a sorting task,
and an online survey of a customer panel to develop a scale named.comQ, which has
four dimensions:
(1) website design;
(2) reliability;
(3) privacy/security; and Moderating effect
(4) customer service. of customer
After an extensive literature review Zeithaml et al. (2002) developed the e-SERVQUAL perceived value
model for measuring e-service quality to study how customers judge it. This new
model was drawn up through a three-stage process involving exploratory focus groups
and two phases of empirical data collection and analysis. It contains seven dimensions: 337
(1) efficiency;
(2) reliability;
(3) fulfilment;
(4) privacy;
(5) responsiveness;
(6) compensation; and
(7) contact.
Parasuraman et al. (2005) recently split the seven dimensions into two separate scales:
(1) E-S-QUAL; and
(2) E-RecS-QUAL.
The first four dimensions are classified as the core service scale, and the latter three
dimensions are regarded as a recovery scale, since they are only salient when online
customers have questions or problems. This study compared the.comQ and
e-SERVQUAL scales and found that the two scales have many similar aspects. In
order to simplify our dimensions we adopted.comQ scales (website design, reliability,
security, and customer service) as our measurable variables of e-service quality.
Customer satisfaction and loyalty

Customer satisfaction is fundamental to the marketing concept, which holds that
satisfying customer needs is the key to generating customer loyalty. Customer
satisfaction generally means customer reaction in the context of the state of fulfilment,
and customer judgment of the fulfilled state (Oliver, 1997). It is defined as an overall
positive or negative feeling about the net value of services received from a supplier
(Woodruff, 1997). Kotler (2000) described satisfaction as a person’s feeling of pleasure
or disappointment resulting from comparing a product’s perceived performance (or
outcome) in relation to their expectations. Now we consider the construct of satisfaction
in the online context. Anderson and Srinivasan (2003) defined e-satisfaction as the
contentment of the customer with respect to their prior purchasing experience with a
given electronic commerce firm. McKinney et al. (2002) also posited that web-customer
satisfaction has two distinctive sources:
(1) satisfaction with the quality of the website’s information content; and
(2) satisfaction with the website’s system performance in delivering information.
Based on the definitions in the literature this study defines customer satisfaction as the
overall positive or negative feeling regarding their purchasing experience from a given
online shopping firm, which is a subjective judgment from personal emotions.
OIR Maximising loyalty and the long-term value of customers’ purchases is one of the
35,3 most important goals of a website (Smith, 2005). Customer loyalty is complex and
comprises many dimensions. Engel et al. (1982) defined brand loyalty as the
preferential, attitudinal and behavioural response toward one or more brands in a
product category expressed over a period of time by a consumer. In addition, Oliver
(1997) distinguished four phases of loyalty:
338 (1) cognitive loyalty;
(2) affective loyalty;
(3) conative loyalty or behavioural intention; and
(4) action loyalty.
It is currently accepted that loyalty includes two dimensions: attitudinal; and

behavioural (Oliver, 1999; Zeithaml, 2000; Chaudhuri and Holbrook, 2001; Anderson
and Srinivasan, 2003; Koo, 2006).
Attitudinal loyalty indicates a higher-order, or long-term and psychological
commitment of a customer to continue a relationship with a service provider (Czepiel
and Gilmore, 1987; Caruana, 2002; Shankar et al., 2003). Behavioural loyalty is defined
as repeat patronage, meaning the proportion of purchases of a specific brand (Neal,
1999; Koo, 2006). However action loyalty is too difficult to observe and measure, so
research tends to employ the conative or behavioural intention to measure customer
loyalty (Yang and Peterson, 2004).
Therefore this study only investigates attitudinal loyalty and measures it from two
dimensions:
(1) repurchase intention; and
(2) word-of-mouth.
Repurchase intention refers to consumers’ evaluation of future purchases from the

same company based on their previous experience (Patterson and Spreng, 1997; Hellier
et al., 2003; Durvasula et al., 2004; Seiders et al., 2005; Olaru et al., 2008). “Word of
mouth” refers to evaluation in oral form of a supplier’s performance (Buttle, 1998),
which is positively associated with satisfaction (File et al., 1994) and contains
consumers’ positive or negative statements about a product for sale on a shopping
website and is helpful for decision-making on purchases (Park et al., 2007; Park and
Lee, 2009).
It is considered difficult to gain loyal customers on the internet (Gommans et al.,
2001). In previous studies satisfaction and service quality were usually used for
explaining customer loyalty, but the relationships among them are complex and
researchers have not reached a consensus on this. Most marketing studies also seem to
accept a theoretical framework in which quality leads to satisfaction (Dabholkar et al.,
2000; Parasuraman et al., 1985, 1988), which in turn influences purchasing behaviour
( Johnson and Gustafsson, 2000; Oliver, 1999; Lin and Sun, 2009). This
quality-satisfaction-behavioural intentions link is consistent with the generally
accepted cognitive evaluations-emotional responses-behavioural outcome causal chain
(Oliver, 1997). Furthermore service quality not only influences loyalty through
satisfaction but also directly. Many studies have modelled service quality as an
antecedent to behavioural intentions and found a significant link (Bitner, 1990;
Boulding et al., 1993; Zeithaml et al., 1996). Moreover, in the online environment some Moderating effect
researchers have suggested that better websites can make consumer transactions of customer
easier and thus attract consumers to revisit or make a repeat purchase (Gommans et al.,
2001; Li and Zhang, 2002; Wu and Lin, 2006). perceived value
Satisfaction is the most relevant variable in the study of customer loyalty
(Castaneda et al., 2009). In the online environment researchers have found that the
overall satisfaction experienced by online customers reduces the perceived benefits of 339
switching service providers, and thus yields stronger repurchase intentions in the case
of online e-retailing services (Szymanski and Hise, 2000; Devaraj et al., 2002; Anderson
and Srinivasan, 2003; Chiou, 2004; Tsai et al., 2006; Lin, 2007; Castaneda et al., 2009; Lin
and Sun, 2009). In other words a dissatisfied customer is more likely to search for
information from alternatives and is more likely to yield to competitor overtures than is
a satisfied customer (Anderson and Srinivasan, 2003). Therefore this study intends to
test the relationships among e-service quality, customer satisfaction and customer
loyalty as follows:
H1. E-service quality has a significant positive effect on customer satisfaction in
an online shopping environment.
H2. E-service quality has a significant positive effect on customer loyalty in an
online shopping environment.
H3. Customer satisfaction has a significant positive effect on customer loyalty in
an online shopping environment.
Customer perceived value

Customer perceived value has been discussed in marketing research for a long time.
Indeed, understanding and delivering customer value is seen as a cornerstone of
marketing, competitive strategy (Khalifa, 2004; Lindgreen and Wynstra, 2005),
retention of customers and relationship management (Roberts, 2000; Payne et al., 2001).
Perceived value has its root in equity theory, which represents the trade-off between
the quality or benefits which the customer receives, and the costs such as financial,
energy, time and mental transaction costs that the customer incurs by evaluating,
obtaining and using a product (Oliver and DeSarbo, 1988; Kotler, 2000; Komulainen
et al., 2007). However this simplification has been criticised for ignoring some
important intangible constructs (e.g. shopping experience, risk) and may be misleading
in measuring perceived customer value (Sinha and DeSarbo, 1998). Hence Zeithaml
(2000) defined perceived value as the consumer’s overall assessment of the utility of a
product based on perceptions of what is received and what is given. In online retailing
settings not only the product itself, but also the website, the internet channel and the
processes of finding, ordering, and receiving products contribute value to customers
(Keeney, 1999). Therefore this study defines perceived customer value as a consumer’s
perception of the net benefits gained based on the trade-off between relevant benefits
and sacrifices derived from the online shopping process, which is an objective
evaluation from personal cognition. Although perceived customer value has long been
recognised in marketing research as an important concept in influencing preference,
satisfaction, loyalty, and other important outcomes (Cronin et al., 2000), most studies
have examined customer value in the context of offline rather than online consumer
behaviour (Overby and Lee, 2006). In an online environment customers can find
OIR alternatives easily, therefore building long-term relationships presents a more difficult
challenge for e-commerce firms. Therefore it is necessary to understand the role of
35,3 customer perceived value on online shopping behaviour.
Keng et al. (2007) suggested that the perceived excellence value reflects the product
performance and general consumer appreciation of a service provider who
demonstrates expertise and maintains a reliable service performance. Therefore
340 service quality becomes the indicator for determining customer values. In the customer
satisfaction index (CSI) model the value perceptions will be directly influenced by
perceived service quality. Therefore we propose the following hypothesis:
H4. E-service quality has a significant positive effect on customer perceived value
in an online shopping environment.

Perceived value is the consequence of an overall assessment of perceived benefits and
sacrifices, whereas satisfaction is an overall positive or negative feeling about the net
value of services received from a supplier (Woodruff, 1997). There is no general
consensus on the relationships among perceived value, satisfaction, and loyalty in the
field of marketing research. The assumption that perceived value directly influences
satisfaction or loyalty has been questioned. In this study we integrate empirical results
and explore the causal relationships linking perceived value, satisfaction, and loyalty
from the perspectives of means-end chain theory and economic theory.
First the means-end chain theory explains that personal values guide people’s
evaluations of relevant attributes and the benefits of a product or service, and then
these evaluations initiate goal-direct purchase behaviour (Koo, 2006). Therefore when
customer perceived value is high they have positive evaluations of and affection for the
product, which is consistent with the result of the well-known customer satisfaction
index model (Fornell et al., 1996). This means that customers will always search for a
business that can provide better customer value. Second the economic theory of utility
assumes that consumers are economically rational, so they will try to achieve the
maximum utility with minimum resources, for example budget, time and cognitive
capabilities (Henderson and Quandt, 1958). Perceived customer value reflects
consumers’ net gain from their consumption behaviour, thus it is likely to be used
as an indicator of purchase intention (Chen and Dubinsky, 2003). In other words,
consumers are believed to choose certain products based on their superior value
compared to competing products. Based on these relationships among consumer
perceived value, consumer satisfaction and consumer loyalty, this study proposes the
following hypotheses:
H5. Customer perceived value has a significant positive effect on customer
satisfaction in an online shopping environment.
H6. Customer perceived value has a significant positive effect on customer loyalty
in an online shopping environment.
Satisfaction is important for establishing long-term customer relationships and further
generates loyalty (Anderson and Srinivasan, 2003; Chiou, 2004; Tsai et al., 2006). The
relationship between satisfaction and loyalty seems intuitive and has been confirmed
by many researchers (Newman and Werbel, 1973; Cronin and Taylor, 1992). However
the strength of the relationship between satisfaction and loyalty has varied
significantly under different conditions (Jones and Sasser, 1995; Oliver, 1999;
Anderson and Srinivasan, 2003). Moreover the relationship between satisfaction and Moderating effect
loyalty in traditional commerce will differ from that in electronic commerce. In of customer
traditional commerce a dissatisfied customer is more likely to search for information on
alternatives and more likely to yield to competitor overtures than a satisfied customer perceived value
(Anderson and Srinivasan, 2003). However in electronic commerce because of the lower
search costs (Bakos, 1991) consumers can easily evaluate product benefits and costs
objectively by comparing product characteristics and prices online (Anderson and 341
Srinivasan, 2003). Therefore even if a customer has previously been satisfied by a
particular website, they still are likely to switch to competing businesses which offer
higher customer perceived value. Based on the above relationship we propose the
following hypothesis:
H7. The impact of customer satisfaction on customer loyalty is moderated by

customer perceived value, and the impact is stronger for the higher level of
customer perceived value group than for the lower group.
Research design
Conceptual model
This research proposes an integrative model to explain users’ online shopping
behaviour based on established relationships among e-service quality (website design,
reliability, security and customer service), customer satisfaction, customer loyalty, and
customer perceived value (presented in Figure 1). The model of this research is based
on Bagozzi’s (1992) self-regulation processes in which appraisal processes lead to
emotional responses, which then lead to coping responses (behaviour). The cognitive
evaluations in this model are similar to the e-service quality and customer perceived
values of products. Customer satisfaction loyalty belongs to emotional reactions and
coping responses separately. Therefore we use Bagozzi’s (1992) self-regulation
Figure 1.
Theoretical framework
OIR processes to develop and test specific research hypotheses linking e-service quality,
customer perceived value, customer satisfaction, and customer loyalty.
35,3
Measures
In order to measure the various constructs, validated items used by other researchers
were adopted and the various dimensions of e-service quality were discussed. For
342 example Wolfinbarger and Gilly (2003) developed a scale called.comQ. Zeithaml et al.
(2002) and Parasuraman et al. (2005) developed two scales – E-S-QUAL and
E-RecS-QUAL – that were used for measuring service quality delivered by websites in
which customers shop online. We consider that the two scales have many similar
aspects and therefore combine them as our measurable variables of e-service quality
using four dimensions:

(1) website design;
(2) reliability;
(3) security; and
(4) customer service.
Customer perceived value was assessed with two items based on the perceived
utility/worth resulting from the trade-off of “get” versus “give-up” (Zeithaml, 1988).
This paper measures customer perceived value using the scales from Dodds et al.
(1991) and Anderson and Srinivasan (2003). Customer satisfaction was assessed by
adapting the scales developed by Oliver (1980) and Anderson and Srinivasan (2003).
Lastly, customer loyalty was evaluated by using scale items adapted from Zeithaml
et al. (1996), Anderson and Srinivasan (2003) and Yang and Lester (2004). Each item
used a seven-point Likert scale ranging from 1 ¼ “strongly disagree” to 7 ¼ “strongly
agree”. A questionnaire initially including 29 items was generated, consisting of 14
items for e-service quality, three items for customer satisfaction, eight items for
customer loyalty and four items for customer perceived value.
Questionnaire design and pilot test procedures

The structure of the online shopping model incorporates four constructs:
(1) e-service quality;
(2) customer perceived value;
(3) customer satisfaction; and
(4) customer loyalty.
The questionnaire was developed from the dimensions of the research constructs
identified from the qualitative survey and literature review. In order to measure
reliability and validity, a pre-test was conducted. A pilot test of the measures was
conducted by 70 respondents who were asked to provide comments on the relevance
and wording of the questionnaire items and it was then adjusted based on their
comments. The results of the pilot were tested using Cronbach’s reliability and
exploratory factor analysis.
One e-service quality item and two customer loyalty items were deleted after the
pilot test. In its final form our questionnaire contained 26 questions: 13 on e-service
quality, four on customer perceived value, three on customer satisfaction and six on
customer loyalty. The instrument also included some demographic variables such as Moderating effect
gender, age, education, employment, average surfing time per week, average spending, of customer
and the methods of bill payment.
perceived value
Samples and procedures
Online shoppers are often divided into two types. One is actual shoppers who have
made purchases on a website; another is browsers who have only visited such websites 343
without making purchases (Lee and Johnson, 2002; Forsythe and Shi, 2003). In this
study our research participants are people who have online purchase experience. Most
sampling schemes fall into three general classes (Fowler, 2002; Singleton and Straits,
2005):
(1) sampling from a more or less complete list;

(2) sampling from a set of people who go somewhere or do something that enables
them to be sampled; and
(3) sampling from multi-age procedures.
In this study, because we cannot obtain a complete list of consumers shopping online,
we adopted the second type of sampling. We wanted to observe online shopping
behaviour; therefore we set a rule for selecting our sample based on purchase times,
such as actual purchase experience with a specific shopping website during a year.
Moreover we obtained a convenience sample in Taiwan via a web-based survey and
recruited participants through related online shopping discussion boards or internet
communities. In order to motivate the public to reply, respondents who completed the
questionnaire were eligible for a prize draw and had a chance to win a cash prize of
between $US15-30.
The internet questionnaire was hosted by Chungwa Telecom. A web-based survey has
many advantages. First it can maximise the questionnaire’s coverage. The internet is
believed to be the most effective way to assure respondents’ variety and quantity, because
online field surveys can elicit faster responses and are geographically unrestricted (Hsu
and Lu, 2004; Tan and Teo, 2000). Second we can also confirm that our sample
interviewees have experience in using the internet by using an online questionnaire.
This study collected 350 respondents, 20 of whose questionnaires were invalid due
to being incomplete. We eliminated the invalid questionnaires and retained 330
questionnaires for analysis. Therefore the percentage of valid responses out of all
responses was 94.3 per cent. The online questionnaire also confirmed that our sample
had experience in using the internet. In the aggregate sample 44.8 per cent of
respondents were men and 55.2 per cent were women.
There are three characteristics of a sample that a researcher should evaluate
(Fowler, 2002):
(1) comprehensiveness;
(2) probability of selection; and
(3) efficiency.
Comprehensiveness. Although this study used a convenience sampling method which

may create doubt as to the representativeness of the target population, we intended to
find a population framework from a secondary survey and tried to make the
OIR distribution of the samples consistent with the target population. Previous work which
35,3 compared the online and offline shopping populations found that online shoppers
appear to be younger, better educated and spend more time on their computer and on
the internet (Swinyard and Smith, 2003). A.C. Nielsen’s (2004) survey also indicated
that the main online shopping users are university students or those who have just
graduated and started work. Moreover shopping websites are most likely to be used by
344 people in their twenties (A.C. Nielsen, 2004). In this study 85 per cent of respondents
were in that age group. Nearly half (48 per cent) of the respondents used the internet for
more than 20 hours each week. Most (71 per cent) of the respondents had less than
$US300 disposable income per month. Many (67 per cent) of the respondents paid for
internet purchases by credit card or ATM transfer accounts. The respondents
exhibited some interesting characteristics. The top three products purchased online in
our study were computer equipment (38 per cent), books (33 per cent), and clothes (29
per cent). From the above evidence our sample results reflect the population of online
buyers in Taiwan.
Probability of selection. In this study we can understand the probability of selection
of each selected individual by asking our respondents about their purchase times at a
specific shopping website. We found that over a six month period 43.7 per cent of
respondents shopped there once or twice while 33.9 per cent shopped 3-5 times.
According to A.C. Nielsen’s (2004) survey in Taiwan 70 per cent of online shoppers did
so between one and five times every six months. Therefore the sample is consistent
with the target population.
Efficiency. In this study we adopted convenience sampling and posted the recruiting
information on related online shopping discussion boards or internet communities,
which was an efficient way to gain access to our sample.
Analysis and results

There are two studies performed in this research. Study 1 validated the
attitude-intention link (Bagozzi, 1992): appraisal process (e-service quality, customer
perceived valueÞ ! emotional reactions (customer satisfactionÞ ! coping responses
(customer loyalty). Study 2 tested the moderating effects of customer perceived value
between satisfaction and loyalty.
Study 1: Attitude-intention link (appraisal process, emotional reactions and coping

responses)
This study focused on identifying the relationships among research constructs (e-service
quality, customer perceived value, customer satisfaction and customer loyalty) perceived
by consumers. According to the two-step approach (Anderson and Gerbing, 1988) we
first developed the measurement model to perform a validity and reliability analysis on
the measurement scale and then used a structural model to examine the research
hypotheses. Both the measurement model and the structural model were assessed using
AMOS 5.0 by the maximum likelihood method (Arbuckle, 2003).
Validity and reliability in the measurement model. The measurement model contains
four constructs:
(1) e-service quality;
(2) customer perceived value;
(3) customer satisfaction; and Moderating effect
(4) customer loyalty. of customer
The questionnaire was developed through a literature review and practitioner perceived value
interviews. Therefore content validity for the questionnaire should be acceptable. We
then proceeded to evaluate the reliability, convergent validity and discriminant
validity of the research model with a confirmatory factor analysis using AMOS 5.0. 345
The reliability and convergent validity of the factors were estimated by composite
reliability and average variance extracted (see Table I). The composite reliability for all
factors in our measurement model was above the recommended 0.70 level (Bagozzi and
Yi, 1988). The average extracted variances were all above the recommended 0.50 level
(Fornell and Larcker, 1981), which meant that more than half of the variances observed
in the items were accounted for by their hypothesised factors. Convergent validity can
also be assessed by factor loading. Following the recommendations of Hair et al. (2006)
factor loadings greater than 0.50 were considered to be very significant. All of the
factor loadings of the items in the measurement model ranged from 0.72 to 0.89,
therefore they were significant (see Table I).
To examine discriminant validity we compared the shared variances between
factors with the average variance extracted from the individual factors (Fornell and
Larcker, 1981). Chi-square was used to examine the statistical significance of the
differences between the two models at p , 0:05 (Bagozzi and Yi, 1988) and they were
all larger than the recommended 3.84 level ( Jöreskog and Sörbom, 1993) (see Table II).
AVE CR Factor
(. 0.5) (.0.7) loading t-value Conclusion
E-service quality
Website design 0.60 0.84 0.73 Significant
Reliability 0.59 0.78 0.74 12.88 * * * Significant
Security 0.76 0.91 0.74 12.95 * * * Significant
Customer service 0.59 0.80 0.72 12.54 * * * Significant
Customer perceived value 0.70 0.92
Products are valuable 0.87 Significant
Get what I pay for at this website 0.81 18.69 * * * Significant
Products are worthwhile 0.85 20.47 * * * Significant
Charges are fair 0.76 16.85 * * * Significant
Customer satisfaction 0.71 0.89
Satisfied with purchases at this website. 0.83 2.42 * * Significant
If I had to purchase again, I would still feel
satisfied. 0.72 14.63 * * * Significant
Purchasing from this website was a wise
decision 0.83 17.72 * * * Significant
Customer loyalty
Repurchase intention 0.71 0.88 0.81 Significant
Word of mouth 0.76 0.86 0.89 17.60 * * * Significant Table I.
Results of the
Notes: * *p , 0:05; * * *p , 0:001 measurement model
OIR Therefore all constructs in the model had adequate reliability, convergent validity and
35,3 discriminant validity.
Examination of the research hypotheses in the structural model. Structural
equation modelling was employed for testing the interrelationships among all the
research constructs: e-service quality, customer satisfaction, customer loyalty and
customer perceived value (see Figure 1). Before evaluating the structural models the
346 overall model fit must be assessed to ensure that the model adequately represents
the entire set of causal relationships. Estimation of this model demonstrated a
superior fit to the data from the goodness of fit indices as follows: chi-square to
degrees of freedom ratio ¼ 3, GFI ¼ 0:925, AGFI ¼ 0:832, NFI ¼ 0:930, CFI ¼ 0:939
and RMR ¼ 0:050. Therefore all of the latent constructs were adequately measured
by the observed variables.

The structural model examines the hypotheses of the research model. Most of the
proposed hypotheses were supported except for H2 (E-service quality ! customer
loyalty), (see Table III and Figure 2). The results indicated that service quality is
related positively to customer satisfaction (g ¼ 0:65, t 2 value ¼ 8:09) and customer
perceived value (g ¼ 0:74, t 2 value ¼ 11:47), but e-service quality did not
significantly affect customer loyalty (g ¼ 0:29, t 2 value ¼ 1:74). Therefore
e-service quality influences customer loyalty through satisfaction. Moreover
customer satisfaction has a significant impact on customer loyalty (b ¼ 0:84,
t 2 value ¼ 4:81). Thus the results of the analysis supported H1, H3, and H4. These
results indicate that e-service quality does not directly affect online shopping customer
loyalty, but it does so indirectly through the mediation of perceived value and customer
satisfaction (see Table IV). Finally customer perceived value has a significant impact
Variables 1 2 3 4 5 6 7 8
1. Web design –
2. Reliability 110.01 –
3. Security 300.12 129.11 –
4. Customer service 182.33 120.38 101.33 –
5. Customer perceived value 319.22 131.44 360.36 222.22 –
6. Customer satisfaction 96.77 82.56 192.33 99.13 97.92 –
7. Repurchase intention 289.53 113.99 477.11 207.68 211.47 103.44 –
8. Word of mouth 91.11 199.44 61.32 69.54 23.11 16.32 13.26 –
Table II.
Discriminant validity Note: All p , 0:1
Structural model Factor loading t-value Conclusion
H1. E-service quality ! customer satisfaction 0.65 8.09 * * * Supported

H2. E-service quality ! customer loyalty 0.29 1.74 Not supported
H3. Customer satisfaction ! customer loyalty 0.84 4.81 * * * Supported
H4. E-service quality ! perceived value 0.74 11.47 * * * Supported
H5. Perceived value ! customer satisfaction 0.33 4.81 * * * Supported
Table III. H6. Perceived value ! customer loyalty 0.34 3.59 * * * Supported
Results of the structural
model Note: * * *p , 0:001
Moderating effect
of customer
perceived value
347
Figure 2.
The results of hypothesis
tests
Predictor
Dependent E-service Customer Customer
Customer loyalty quality perceived value satisfaction
(CL) (E-SQ) (CPV) (CS)
Direct effects
Customer perceived value 0.74 – –
Customer satisfaction 0.65 0.33 –
Customer loyalty NS 0.34 0.84
Indirect effects
Customer perceived value – – –
Customer satisfaction 0.24 – –
Customer loyalty 0.54 0.27 –
(E-SQ-CS-CL) (CPV-CS-CL)
0.25
(E-SQ-CPV-CL)
0.20
(E-SQ-CPV-CS-CL)
Total effects
Customer perceived value 0.74 – – Table IV.
Customer satisfaction 0.89 0.33 – Direct, indirect and total
Customer loyalty 0.99 0.61 0.84 effects
on customer satisfaction (g ¼ 0:332, t 2 value ¼ 4:812) and customer loyalty

(g ¼ 0:341, t 2 value ¼ 3:595). Therefore the results of the analysis supported H5
and H6. These results conform to the theories of experiential consumer behaviour.
The path coefficients and explained variance for this structural model are shown in
Figure 2. E-service quality influence accounted for 54.3 per cent of the variance in
customer perceived value. Together, the predictors such as e-service quality and
customer perceived value explained 81 per cent of the variance in customer
OIR satisfaction. E-service quality, customer perceived value and customer satisfaction
35,3 influence collectively accounted for 78 per cent of the variance in customer loyalty.
Study 2: Moderating effects of customer perceived value

The objective of this section is to examine if customer perceived value might influence
the relationship between customer satisfaction and customer loyalty. The moderating
348 effects of customer perceived value were tested using a hierarchical linear regression
analysis (Cohen and Cohen, 1983). In the regression analysis we view consumer loyalty
– which included repurchase intentions and word of mouth – as a dependent variable,
and customer perceived value, satisfaction and interaction effects between them as
independent variables. As reported in Table V satisfaction accounted for 55.9 per cent
of the variance in customer loyalty. When the variable of perceived value was added
into the regression, the independent variable increased to 62.9 per cent of the variance
in word of mouth. Finally when we added the interaction variables (satisfaction with
perceived value) into the regression, the two independent variables (satisfaction and
perceived value) became insignificant and the interaction variable had significant
effects in the regression model. The results show a strong moderating effect of
perceived value in the relationship between satisfaction and loyalty.
Table V shows the hierarchical regression results of the analyses for customer
satisfaction, customer perceived value and customer loyalty. Consistent with
expectations the main effects of customer satisfaction and customer perceived value
positively and significantly affected consumer loyalty (b1 ¼ 0:474, t ¼ 8:761;
b2 ¼ 0:413, t ¼ 7:862) (see Model 2 in Table V). When we put the interaction effect
of perceived value in the model, the parameter estimate for the main effect of perceived
value on loyalty became insignificant (b1 ¼ 0:088, t ¼ 0:986; b2 ¼ 20:025,
t ¼ 20:272), but the parameter estimate for the interaction term (satisfaction with
perceived value) was significantly positive (b ¼ 0:088, t ¼ 23:581) for customer
loyalty (see Model 3 in Table V). This indicated that perceived value indeed positively
moderates the impact of satisfaction on customer loyalty, and thus H7 was supported.
Further we continued to examine the moderating effect in the relationship between
satisfaction and customer loyalty for low perceived value and high perceived value. In
order to understand the differences in the moderating effects of customer perceived
Dependent variable: loyalty Model 1 Model 2 Model 3
Constant 0.699 0.257 2.435

(3.483 *) (1.332) (23.719 * * *)
Satisfaction 0.792 0.474 0.088
(20.373 * * *) (8.761 * *) (0.986)
Perceived value 0.413(7.862 * *) 2 0.025
(2 0.272)
Satisfaction £ perceived value 0.088
(23.581 * * *)
Table V. R2 0.559 0.629 0.629
Hierarchical regression Adjusted R 2 0.557 0.626 0.628
analysis of satisfaction, DR 2 0.069 0.002
perceived value and
loyalty Notes: *p , 0:1; * *p , 0:05; * * *p , 0:005
value on the relationship between satisfaction and loyalty, we used a cluster analysis to Moderating effect
divide customer perceived value into high and low groups. The first group is low of customer
perceived value (n ¼ 163); the second group is high perceived value (n ¼ 167). In the
two groups we used satisfaction as the independent variable and loyalty as the perceived value
dependent variable to form two regression models (see Table VI). Then we used the
Chow test to determine whether the coefficients in a regression model were the same in
separate perceived value groups. The results from the Chow test showed a significant 349
difference between the two regressions (F ¼ 41:55, p , 0:05). Moreover, the results
indicated that satisfaction has a higher impact on customer loyalty at higher levels of
customer perceived value (b ¼ 0:697, t ¼ 9:916) than at lower customer perceived
value (b ¼ 0:572, t ¼ 8:779) (see Table VI); the moderating effects are plotted in
Figure 3. Therefore customers who perceived high value had more loyalty than those
who perceived low value when they felt satisfaction.
Discussion and implications

Discussion
This study intended to understand online consumers’ shopping behaviour with an
emphasis on the role of customer perceived value. In order to respond to our research
questions we adopted two methodologies within this study. First this study adopted
self-regulating processes (Bagozzi, 1992) to explain how the factors (e-service quality,
customer perceived value and satisfaction) influence customer loyalty in online
shopping. Second this research intended to demonstrate the moderating effect of
Low perceived value High perceived value

Dependent variable: Dependent variable:
Loyalty (n ¼ 163) Loyalty (n ¼ 167) Chow test
Constant 1.526 1.381 F ¼ 41:55 * * *

(5.182 *) (3.451 *)
Independent variable: satisfaction 0.572 0.697
(8.779 * *) (9.916 * *)
R2 0.329 0.368 Table VI.
Adjusted R 2 0.325 0.364 The difference in
perceived value between
Notes: *p , 0:1; * *p , 0:05 satisfaction and loyalty
Figure 3.
The moderating effect for
perceived value
OIR customer perceived value between customer satisfaction and loyalty in online
35,3 shopping.
In Study 1 we identified three key antecedents – e-service quality, customer
perceived value and customer satisfaction – that are likely to influence customer
loyalty in the online shopping environment (R 2 ¼ 78 per cent). Then we found that
customer satisfaction is the most significant factor affecting customer loyalty. The
350 results are consistent with the self-regulating processes (Bagozzi, 1992) in that the
appraisal process (e-service quality and customer perceived value) influences
emotional reactions (customer satisfaction), and then emotional reactions influence
coping responses (customer loyalty). In addition an interesting finding with regard to
customer perceived value was that it has both direct and indirect impact on customer
loyalty. This result indicated that customer perceived value has an important role in
explaining customer loyalty. Further we found two interesting routes influencing
customer loyalty:
(1) emotional influencing route: e-service quality causes consumer emotional
satisfaction and then leads to loyalty (b ¼ 0:54); and
(2) rational influencing route: e-service quality leads to consumer rational
perceived value and then leads to loyalty (b ¼ 0:25).
Because customer satisfaction is such an important factor influencing customer

loyalty, understanding possible antecedents affecting the formation of it can be useful
for managers. The results showed that the development of customer satisfaction with a
shopping website (R 2 ¼ 81 per cent) is related to high e-service quality (g ¼ 0:65) as
well as perceived value from that website (b ¼ 0:33). Moreover e-service quality
played an important role in developing the online shoppers’ perceived value (g ¼ 0:74)
(R 2 ¼ 54:3 per cent). This implies that website managers need to pay more attention to
improving e-quality. In an online environment it is much easier to compare product
technical features and prices than through traditional channels (Santos, 2003), because
customers can easily switch to competing businesses (Lee and Overby, 2004).
Therefore, online customers expect equal or higher levels of service quality than
traditional channel customers (Lee and Lin, 2005). When online shoppers perceive high
e-service quality, they will exhibit high customer perceived value and attain customer
satisfaction and customer loyalty.
We conducted the second study in response to our second research issue concerning
the influence of moderating variables on customer perceived value. The results showed
that customer perceived value has a moderating effect on the relationship between
customer satisfaction and customer loyalty. We found that customers with high
perceived value have a stronger relationship between satisfaction and customer loyalty
than customers with low perceived value. This means that even satisfied customers are
likely to switch to an e-business that offers better value, so perceived value contributes
to the loyalty of an e-business by reducing an individual’s need to seek alternative
service providers (Anderson and Srinivasan, 2003). The findings of this study provide
the following theoretical implications as well as managerial implications.
Research implications
There are several important theoretical implications of this study. First because of the
fundamentally different characteristics of online and offline shopping, such as the
context of traditional service quality and e-service quality, and transaction costs of Moderating effect
customers, customer loyalty is very different online compared to traditional physical of customer
shops. Previous studies found obvious factors influencing consumer loyalty, such as
service quality and consumer satisfaction, but neglected to understand the influencing perceived value
processes. This study has demonstrated that the process of attaining customer loyalty
in online shopping is consistent with the self-regulation process: appraisal processes,
emotional reactions and coping responses (Bagozzi, 1992). From the self-regulation 351
process (Bagozzi, 1992) this study found that there are two distinct routes influencing
customer loyalty in the online shopping process: one is an emotional way based on
better moods and feelings; another is a rational way based on comparative analysis of
benefits and costs. These two routes have been found to have different impact on
consumer loyalty at different purchase stages.

Second the most famous customer satisfaction model is the customer satisfaction
index (CSI) (Fornell et al., 1996). The fundamental difference between the CSI and this
research model lies in the role of the perceived customer value variable. This research
assumes that the perceived customer value variable has a direct effect on both
satisfaction and loyalty. It also has a moderating effect between satisfaction and
loyalty. When consumers are shopping online their search costs and switching costs
become lower than when shopping at physical shops. Therefore consumers can easily
compare different shopping websites and weaken the traditional link between
satisfaction and loyalty. The traditional CSI model was developed for physical shops,
thus it cannot explain this e-commerce phenomenon well.
Third the purchase process consists of several distinct stages: pre-purchase,
purchase and post-purchase. Previous researchers have viewed the purchase process
as a monolithic decision and assume consumers will use the same channel for all
purchase stages (Choudhury and Karahanna, 2008). This study found that online
retailers should use appropriate marketing strategies for each of the different consumer
purchase stages. For example e-service quality occurs before a consumer’s purchase,
thus there are tangible cues that can be used to heighten a consumer’s perceptions of it.
When consumers engage in purchasing they will conduct emotional and rational
assessments about the product. This study found that the emotional variable is more
important that the rational variable in the purchase stage. Then after purchasing,
online retailers can strengthen consumer loyalty by promoting rational assessments.
Managerial implications
The results of this study provide several implications for managers promoting
intention to purchase at shopping websites. This study found two alternative ways to
enhance consumer loyalty. These are the emotional and rational influencing routes,
both of which should be applied at different purchase stages. There are three stages in
a shopping process – i.e. pre-purchase, purchase, and post-purchase (Frambach et al.,
2007; Choudhury and Karahanna, 2008) – and the results of this study can provide
specific recommendations for online retailers during these three stages.
In the pre-purchase stage in which consumers acquire information about products
from the website, online retailers should focus on attracting consumers who visit their
websites by controlling the tangible variables rather than intangible variables, such as
e-service quality. Furthermore, this study found that different dimensions of e-service
quality have different impacts on consumers’ emotional and rational assessments
OIR about products. Among the four dimensions of e-service quality (website design,
35,3 reliability, security and consumer service), this study found that website design is an
important dimension, because it affects both customer satisfaction and consumer
perceived value. Therefore online retailers should pay attention to website design by
adding abundant information, personalisation and a friendly interface. In addition to
website design customer perceptions of transaction security are important, thus online
352 retailers should address the common perceptions of risks involved in transmitting
sensitive information, such as credit card numbers (Chang and Chen, 2009). There are
other dimensions of e-service quality that need to be emphasised to increase perceived
value and customer satisfaction respectively. For enhancing consumer satisfaction the
other dimension is consumer service, which gives the consumer a feeling of respect and
protection. Therefore online retailers have to establish a good channel of

communication with their consumers. For improving consumer perceived value the
other important dimension is reliability, which is related to consumers’ benefits or
losses. Therefore online retailers should pay attention to the delivery of dependable
services for consumers.
In the purchase stage, in which consumers are proceeding with their transaction,
this study found that there are two paths influencing customer loyalty, of which the
emotional influencing route is more effective than the rational influencing route. This
means that although consumers can easily get information about products and
compare them to those on other websites, allowing them to make a rational decision,
they prefer to patronise a site based on emotional factors. For example, if consumers
are shopping on a website with which they have had a highly satisfying experience,
they will trust that site and not compare it with others before making purchase
decisions. Therefore, in the process of shopping online, the most important thing
consumers are concerned about is whether the website offers good e-service quality
which will give them emotional satisfaction.
In the post-purchase stage in which consumers complete their purchase and
evaluate the next purchase, this study found that rational factors play an important
role. In this rational approach online retailers can strengthen the causal relationship
between satisfaction and loyalty by raising their customer perceived value. Therefore
after shopping online, consumers become rational and start to analyse the overall
utility of perceived benefits and costs. If consumers perceive higher value from that
website, they reconfirm previous deep experiences of satisfaction and are then more
loyal. Hence this result provides the potential for online retailers to prevent their
customers from switching to competing businesses. We found that there are two ways
to improve customer perceived value for online retailers: one is increasing customers’
benefits from products, such as goods’ or services’ functional benefits, psychological
benefits, and image value, etc. Another is by decreasing customers’ sacrifices by
offering lower prices and simple transaction processes, etc.
Limitations
There are several limitations of this research that should be considered when
interpreting its findings. First, the survey was conducted with online shoppers in
Taiwan. However different countries have different cultures that lead to dissimilar
consumer patterns. Therefore the results cannot be applied directly to other countries.
Second, this study considered general online shopping behaviour rather than focussing
on a particular type. It is likely that consumers’ shopping behaviour will vary in Moderating effect
different product categories, websites and industries. Therefore we suggest that future of customer
research address these variations. Third, this study did not include any variables
regarding relationship quality, which is an important construct when firms establish perceived value
long-term relationships with customers (Crosby et al., 1990). It would be worthwhile to
examine comprehensively how these variables influence customer loyalty in the online
shopping context. Finally, this study is cross-sectional rather than longitudinal 353
research, whereas consumer perceptions and intentions will change over time.
Therefore, in order to capture the variations, it is necessary for them to be measured
several times by future researchers.
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About the authors

Hsin Hsin Chang is a Professor in the Department of Business Administration and Institute of
International Business, National Cheng Kung University, Taiwan. She holds an MBA from the
University of Wales, UK, and a PhD in IT and Management from the School of Management,
University of Bradford, UK. Her research interests are in related to information management,
technology management, e-business and e-marketing, TQM, collaborative commerce, and global
logistics. She has published in such journals as Information & Management, Information
Systems Journal, Technovation, Computers in Human Behavior, International Journal of
Human-Computer Studies, Online Information Review, TQM & Business Excellence,
International Journal of Computer Integrated Manufacturing, etc. Hsin Hsin Chang is the
corresponding author and can be contacted at: easyhhc@mail.ncku.edu.tw
Hsin-Wei Wang is a Doctoral Candidate in the Department of Business Administration at
National Cheng Kung University, Taiwan. She earned an MBA from Taipei University. Her
current research interests focus on consumers’ adoption of mobile commerce, online shopping
and online auctions. She has published in such journals as International Journal of Intercultural
Information Management and Journal of Management & Systems, and the proceedings of several
international conferences, such as those held by the Decision Sciences Institute and the European
Association for Consumer Research.
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Online Information Review

The moderating effect of customer perceived value on online shopping behaviour

*Related content and download information correct at time of download.

considerable impact on customer loyalty (Castaneda et al., 2009). Although this

Customer satisfaction and loyalty

It is currently accepted that loyalty includes two dimensions: attitudinal; and

Repurchase intention refers to consumers’ evaluation of future purchases from the

Customer perceived value

in an online shopping environment.

H7. The impact of customer satisfaction on customer loyalty is moderated by

using four dimensions:

Questionnaire design and pilot test procedures

(1) sampling from a more or less complete list;

Comprehensiveness. Although this study used a convenience sampling method which

Analysis and results

Study 1: Attitude-intention link (appraisal process, emotional reactions and coping

by the observed variables.

Structural model Factor loading t-value Conclusion

H1. E-service quality ! customer satisfaction 0.65 8.09 * * * Supported

on customer satisfaction (g ¼ 0:332, t 2 value ¼ 4:812) and customer loyalty

Study 2: Moderating effects of customer perceived value

Dependent variable: loyalty Model 1 Model 2 Model 3

Constant 0.699 0.257 2.435

Discussion and implications

Low perceived value High perceived value

Constant 1.526 1.381 F ¼ 41:55 * * *

Because customer satisfaction is such an important factor influencing customer

consumer loyalty at different purchase stages.

protection. Therefore online retailers have to establish a good channel of

McGraw-Hill, New York, NY.

websites: a critical review of extant knowledge”, Journal of the Academy of Marketing

About the authors

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

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