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Decision Support Systems 53 (2012) 835–845

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Decision Support Systems


journal homepage: www.elsevier.com/locate/dss

Re-examining the influence of trust on online repeat purchase intention:


The moderating role of habit and its antecedents
Chao-Min Chiu a,⁎, Meng-Hsiang Hsu b, Hsiangchu Lai a, Chun-Ming Chang c
a
Department of Information Management, National Sun Yat-sen University, No. 70, Lienhai Rd., Kaohsiung 80424, Taiwan, ROC
b
Department of Information Management, National Kaohsiung First University of Science and Technology, No.2, Jhuoyue Rd., Nanzih District, Kaohsiung City, 811, Taiwan, ROC
c
Department of Tourism Information, Aletheia University, No.32, Chen-Li St., Tamsui, Taipei County, 251, Taiwan, ROC

a r t i c l e i n f o a b s t r a c t

Available online 23 May 2012 Customer loyalty or repeat purchasing is critical for the survival and success of any store. By focusing on online
stores, this study investigates the moderating role of habit on the relationship between trust and repeat purchase
Keywords: intention. Prior research on online behavior continuance models perceives usefulness, trust, satisfaction, and
Habit perceived value as the major determinants of continued usage or loyalty, overlooking the important role of
Online shopping habit. We define habit in the context of online shopping as the extent to which buyers tend to shop online auto-
Repeat purchase intention
matically without thinking. Building on recent research on the continued usage of IS and repeat purchasing, we
Satisfaction
Trust
develop a model suggesting that habit acts as a moderator between trust and repeat purchase intention, while
Value familiarity, value and satisfaction are the three antecedents of habit. Data collected from 454 customers of the
Yahoo!Kimo shopping mall provide strong support for the research model. The results indicate that a higher
level of habit reduces the effect of trust on repeat purchase intention. The data also show that value, satisfaction,
and familiarity are important to habit formation and thus relevant within the context of online repeat purchasing.
The implications for theory and practice and suggestions for future research are also discussed.
© 2012 Elsevier B.V. All rights reserved.

1. Introduction online shopping experience. Further, Van der Heijden et al. [71] posited
that, once a certain evaluation level of trust has been reached, trust no
Online retailing has been an important channel or business model for longer contributes to people's attitudes towards online purchase inten-
many firms. In the increasingly competitive online retailing market, the tion. However, little research has been done to examine the contingency
main concern for online sellers has shifted from inducing consumers to under which the relationship between trust and repeat purchase inten-
adopt their online channels to motivating consumers to make repeat pur- tion will be reduced.
chases through these channels. Repeat customers are five times more Trust can serve as a mechanism for reducing uncertainty or mitigat-
profitable than new customers, but more than 50% of repeat customers ing the sources of uncertainty [60]. It implies that the importance of
seldom complete a third purchase [37]. Thus, it is important for online trust will decrease when the conscious consideration of uncertainty
sellers to understand why buyers are willing to make repeat purchases becomes silent. Through the satisfactory repetition of online shopping,
from these online stores. people may learn that there is an association between such online shop-
Trust in sellers is a vital key to maintaining continuity in the buyer– ping behavior and satisfactory results [74]. For example, if buying com-
seller relationship [6]. Many researchers suggest that trust is particular- puter, communication and consumer electronic (3C) products from an
ly important within the context of online shopping because there is a online seller would save money, consumers may buy these from that
spatial and temporal distance between buyers and online sellers online seller spontaneously whenever they need 3C products. Such
[63,64]. Prior research [43,49,64,81] suggests that trust is characterized spontaneous shopping behavior, resulting from the automatic retrieval
by uncertainty, conscious attention, and gradual development over of the learned association, implies that habit formation is involved here
time. However, an individual level of trust may increase gradually and that the impact of trust decreases due to the non-necessity for the
based on positive outcomes from repeated behavior, although its im- conscious consideration of uncertainty. In fact, Verplanken and Aarts
portance in determining repeat purchase intention may decrease over [73] defined habit as “learned sequences of acts that have become auto-
time. Gefen et al. [24] argued that the impact of trust decreases with matic responses to specific cues, and are functional in obtaining certain
goals or end states” (p. 104). In the online shopping context, a repetitive
satisfactory shopping experience may not only increase trust but also
⁎ Corresponding author. Tel.: + 886 7 5252000x4733; fax: + 886 7 5354799.
E-mail addresses: cmchiu@mis.nsysu.edu.tw (C-M. Chiu),
develop habit and reduce the impact of trust gradually.
mhhsu@ccms.nkfust.edu.tw (M-H. Hsu), hclai@mis.nsysu.edu.tw (H. Lai), Habit has been used to predict behavioral intention in the traditional
cmchang@au.mail.edu.tw (C-M. Chang). retail context [30,34]. However, the relationship between trust, intention

0167-9236/$ – see front matter © 2012 Elsevier B.V. All rights reserved.
doi:10.1016/j.dss.2012.05.021
836 C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845

and habit has not been explored by researchers to date. In addition, of this section will define the constructs and develop the hypotheses
consumption behavior in physical stores usually involves face to face presented in the model.
interaction which has a relatively low risk and uncertainty. Habit forma-
tion is more complex in the online shopping context, which involves 2.1. Moderating effect of habit on the relationship between trust and
higher risk and uncertainty [52]. There are also several researches on repeat purchase intention
habit in the online context [36,45,52]. Researchers have found that habit
moderates the relationship between satisfaction and online repurchase Trust is defined as a general belief that another party can be trusted,
intention [36]. Unfortunately, none of them have investigated the moder- based on the assumption that the other party in the social exchange will
ating effect of habit on the relationship between trust and repeat purchase not act opportunistically but will behave in an ethical and socially ap-
intention. propriate manner [25,31]. Trust is also viewed as a set of specific beliefs
In addition to the online shopping context, we can also find research dealing primarily with the benevolence, competence, and integrity of
on habit in organizational information systems (IS) usage [38,41,46,47]. another party [18,20]. Benevolence is the belief that the trustee will
However, the organizational setting is very different from the online not act opportunistically against the trustor, even if given the opportu-
shopping context. The former involves social norms, the top man- nity. Competence is the belief in the trustee's ability to fulfill his/her ob-
agement's beliefs and the organizational culture, and thus mandated ligations as expected by the trustor. Integrity is the belief that the
usage is very common for employees [78], especially with regard to leg- trustee will be honest and honor his/her commitments.
acy systems. Even in the voluntary usage context, employees' IS usage Trust in the seller is a vital key to maintaining continuity in the
only involves whether they use it or not, and usually does not involve buyer–seller relationship in the traditional retail setting [6]. Many re-
the issue of switching to a competing system. Unlike in the organiza- searchers suggest that trust is an important mechanism governing
tional setting, habit formation is especially important in the online many social exchange relationships in contexts that are characterized
shopping context because consumers can easily switch to other com- by uncertainty, especially in the e-commerce setting [63,64]. In the
peting online sellers [36]. It is critical to understand how to make con- context of online shopping, some of the signals presented face to
sumers' shopping behavior habitual, so online sellers should design face may be unavailable, and some information could even be dis-
lock-in mechanisms to motivate repeat purchase. This study aims to torted [64]. This may prevent buyers from being assured of the trust-
fill the knowledge gap here. worthiness and credentials of the seller and thus make the former
Therefore, the objective of this paper is to address the following reluctant to purchase online [60]. Trust has been regarded as the re-
research questions: (1) Does habit reduce the impact of trust on re- sult of individual judgments about past behavior in which the derived
peat purchase intention? (2) What are the antecedents of habitual values of such future behavior are cognitively assessed [81]. In addi-
online shopping? Hopefully, this study will help us to gain a better tion, individuals develop trust gradually over time based on positive
understanding of the relationship between habit, trust and the repeat outcomes from repeated behavior [43,49].
purchase intention of online buyers. The concept of habit was introduced in the early days of psychol-
This paper is organized as follows. Section 2 discusses the back- ogy [32] and has been studied in various disciplines, such as social
ground theory about this research and develops a series of hypotheses. psychology, consumer behavior, organizational behavior and infor-
We describe our research design and analysis results in Section 3. Then, mation systems [47]. In fact, habit has been used to predict consump-
Section 4 interprets our main findings, and Section 5 provides the tion behavior in the traditional retail context and online context as
conclusion. well. In the traditional retail context, Honkanena et al. [30] found
that, when a strong habit is present, the expression of an intention
might be guided by the salience of past behavior rather than by atti-
2. Theoretical background and hypotheses tudes. Further, Ji and Wood [34] found that consumers repeat habitu-
al behavior even if they report an intention to do otherwise. There are
Fig. 1 presents the proposed model for the study. The dependent also several researches regarding habit in the online context. For ex-
variable is repeat purchase intention, referring to the subjective prob- ample, Liao et al. [45] showed that consumers' intention to continue
ability that an individual will continue to purchase products from the using a B2C web site are determined by its perceived usefulness,
online seller or store in the future. We argue that the effect of trust on trust, and habit. The concept of habit has also been applied to organi-
repeat purchase intention will decrease when online shopping behav- zational information systems (IS) usage. For example, Limayem and
ior becomes more of a habit, based on the assertions of Limayem et al. Hirt [46] highlighted the importance of habit as a factor in addition
[47] and Van der Heijden et al. [71]. In other words, we propose that to intention to use in explaining usage behavior.
habit will have a moderating effect on the relationship between trust Habit has been defined by researchers from different perspectives.
and repeat purchase intention, which is the main focus of this study. For instance, Trindis [70] defined it as “situation-behavior sequences
In addition, based on studies by Lankton et al. [41] and Limayem et al. that are or have become automatic…the individual is usually not con-
[47], we also argue that perceived value, satisfaction and familiarity scious of these sequences” (p. 204), while Verplanken and Aarts [73]
are the three critical factors in fostering a habit. Furthermore, we pro- defined it as “learned sequences of acts that have become automatic
pose that satisfaction will influence the formation of trust, following responses to specific cues, and are functional in obtaining certain
the studies of Li et al. [44] and Wang and Head [79]. The remainder goals or end states” (p. 104). In general, these definitions reveal that
habit is not the same as behavior [47]. Additionally, the definitions
Second-order show that habits are learned acts and goal-directed. Habits are grad-
Familiarity
H2 ually laid down in the procedural memory through repeated perfor-
mance. The development of a habit requires a certain amount of
Utilitarian
Value repetition or practice [3]. Overall, the online shopping habit can be
H3
Value Habit viewed as an automatic behavioral response that is triggered by a sit-
Hedonic uational stimulus without a cognitive analysis process due to the
H4
Value H5
H1 learned association between the shopping behavior and satisfactory
Repeat Purchase
results [3,72,82,83].
Satisfaction Trust
H6
Intention Prior research has examined the moderating role of habit. For in-
stance, Limayem et al. [47] applied the concept to continued IS
Fig. 1. Research model. usage, arguing that habit plays a moderating role in the relationship
C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845 837

between intention and IS continuance behavior. Khalifa and Liu [36] Table 1
examined the moderating role that habit plays between satisfaction Reasons for including/excluding factors as the antecedents of habit.

and online repeat purchase intention. They suggested that satisfac- Antecedent Included Reasons
tion may not necessarily lead to an intention to return to an online
Frequency of prior No According to Self-Report Habit Index [74], the
store in the absence of habit. The effect of the determinants of online behavior frequency of past behavior is a characteristic of
repeat purchase intention may be contingent upon the development habit. In addition, it is not necessary that there is a
of the habit of using the online channel. linear relationship between the frequency of prior
behavior and habit since it implies that every
Morrison and Firmstone [52] argued that the main function of
repetition, whether early on in the habit forma-
trust is to reduce uncertainty, which refers to an individual's per- tion process or after a large number of repetitions,
ceived inability to predict something accurately [51]. The role of would result in the same increase in automaticity
trust may vary depending on the level of uncertainty presented with- [40]. Another issue is the fact that the accuracy of
in the context in which an event occurs (i.e., structural strength) [33]. the self-reported frequency is questionable.
Satisfaction Yes An important characteristic of habit formation is
When uncertainty or ambiguity is high (weak structural strength),
the learned association between a particular
people have no clear guidance or useful cues to enable them to inter- behavior and a satisfactory result [74].
pret others' behavior, and thus trust exerts a strong influence in such Comprehensiveness No This refers to the extent to which an individual
situations. In situations involving little uncertainty or ambiguity of usage makes use of the various applications offered
under the umbrella of a single IS system [47]. It
(strong structural strength), trust plays little role in helping people
does not completely fit into the online shopping
to understand or judge others' behavior [33]. Ouellette and Wood context.
[56] noted that, once a behavior has become a habit, it becomes auto- Familiarity Yes Online shopping involves understanding and
matic and is carried out without conscious decision. Habit is an effec- knowledge not only about the website interface
tive manager of risk through removing the conscious awareness of but also the online shopping procedures and
online seller. Considering the difference between
uncertainty and thus habit is trust working at its most effective [52].
IS usage and online shopping, the present study
This implies that the ability of trust to reduce uncertainty decreases considers familiarity rather than the comprehen-
once a behavior has become a habit. Therefore, the present study the- siveness of usage as the antecedents of the online
orizes that habit may make the conscious consideration of uncertain- shopping habit.
Value Yes This is an element in the means-end chain (attri-
ty unnecessary (or, in a way, “silence” it), and thus the importance of
bute–consequence–value) hierarchy and involve
trust will decrease. In other words, habit negatively moderates the re- higher-level goals that motivate and direct con-
lationship between trust and repeat purchase intention. sumers' behavior and decision making [26].
Habits are goal-directed automatic behavior [1].
H1. The habit of shopping from an online seller reduces the influence Based on the arguments, we believe that per-
ceived value could be an important antecedent,
of trust on repeat purchase intention.
driving people to purchase online repetitively and
facilitating the development of habit.
Prior IT use No This is a good antecedent for IT usage habit.
2.2. Antecedents of habit However, it is inappropriate in the online shop-
ping context. In addition, the reasons for exclud-
ing behavioral frequency can be applied here too.
To appreciate fully the role of habit in the context of online shop- Importance No Values refers to “what people consider important
ping, we now turn to a discussion of its antecedents, with a focus on and the goals they wish to pursue” [65]. We
the conditions under which online shopping habits are more likely to exclude importance since it overlaps with value
form. Limayem et al. [47] modeled frequency of prior behavior, satisfac- to some extent.
Task complexity No When the buyer becomes familiar with the
tion, and comprehensiveness of usage as the antecedents of habit,
website interface and transaction procedures, the
whereas Lankton et al. [41] modeled prior IT use, satisfaction, impor- online shopping task will become easy, which is
tance, and task complexity as the antecedents of habit. However, we the opposite of task complexity.
identified familiarity, perceived value and satisfaction as the three ante-
cedents of online shopping habit from an online seller. Table 1 outlines
the reasons for adopting these three constructs. H2. Familiarity is positively related to the habit of shopping from an
online seller.

2.2.1. Familiarity and habit 2.2.2. Perceived value and habit


In this study, familiarity refers to a buyer's degree of understand- Perceived value has been defined as individuals' overall evaluation
ing and knowledge about the website interface, online shopping pro- of the utility of an activity based on their perceptions of what is re-
cedures, and the online seller. An important characteristic of habit ceived and what is given [17,84]. In this study, perceived value is de-
formation is the learned association between the behavior and a sat- fined as the benefits received from a transaction with an online seller,
isfactory result or the experienced consequence [74]. Familiarity with considering the money, time and effort spent. Prior research on shop-
the website interface and transaction procedures contributes to a ping motivation indicates that the value considerations motivating
successful online transaction. As the buyer gains adequate practice in people to engage in a specific behavior have both utilitarian and he-
using the website interface and transaction procedures, an association donic dimensions [8]. Utilitarian value reflects the acquisition of
between online shopping behavior and a successful transaction will be products in an efficient manner and can be viewed as reflecting a
learnt. Increments of habit strength are accomplished by repetitions of more task-oriented, cognitive, and non-emotional outcome of shop-
reinforcements [75]. In addition, familiarity with the website interface ping [8,28]. Because these traditional utilitarian explanations, geared
and transaction procedures will cause buyers to feel that they are shop- to product acquisition, may not fully reflect the totality of the shop-
ping in a stable context, which will facilitate their propensity to perform ping experience, researchers have increasingly perceived the impor-
repeated behavior with minimal cognitive monitoring [83]. Further, tance of the hedonic value of shopping [8]. Hedonic value reflects
according to Murray and Häubl [52], skill-based habit will be acquired the value received from the multisensory, fantasy and emotive as-
after the buyer becomes familiar with the website interface and trans- pects of the shopping experience [28].
action procedures, which contributes to the strength of habitual shop- Schwartz Value Theory [67] defined values as “desirable trans-
ping from an online seller. situational goals, varying in importance, that serve as guiding principles
838 C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845

in the life of a person or other social entity” (p. 21). Bridge and Florsheim a business to satisfy the needs of its clients. Consumers' feeling of satis-
[12] identified utilitarian and hedonic values as the online shopping faction is associated with their perceptions of the fulfillment of the re-
goals and Aarts and Dijksterhuis [1] argued that habits are goal- quired level of honesty, benevolence and competence by the website
directed; the higher value an online shopper perceives, the more likely [21]. The prior literature has empirically shown that satisfaction plays
it is that the habit will be reinforced. Accordingly, buyers are hypothe- a vital role in the formation of trust [44,79]. Thus, the above discussion
sized to enhance their habitual shopping from an online seller as long leads to the following hypothesis.
as such relational or transactional exchanges provide superior values,
including utilitarian and hedonic values. H6. Buyers' satisfaction is positively related to their trust in the on-
line seller.
H3. Perceived value is positively related to the habit of shopping
from an online seller.
3. Research methodology
2.2.3. Satisfaction and habit
Oliver [53] concluded that satisfaction is a function of an initial 3.1. Measurement development
standard and some perceived discrepancy from the initial reference
point after reviewing many past studies. In this study, satisfaction re- Measurement items were adapted from the literature wherever
fers to a buyer's feelings of pleasure or disappointment resulting from possible. A small-scale pretest of the questionnaire was conducted
comparing the perceived performance (or outcomes) of online shop- with 10 Ph.D. students with online shopping experience to assess its
ping in relation to his or her expectations. If an online buyer evaluates logical consistency, ease of understanding, and contextual relevance.
his or her shopping experience positively, say, because he/she accom- Then, a large-scale pretest with 162 customers of the target online
plished the task of product acquisition in an efficient manner and shopping mall was conducted to confirm the measurement properties
found the shopping process interesting, it is likely that his or her will- of the final items. The results indicate that the measurement model
ingness to shop online again will increase. Thorngate [69] noted that fulfills the criteria for reliability, convergent validity, and discriminant
“If a response generated in an interaction is judged to be satisfactory, validity, with composite reliability values ranging from 0.89 to 95,
it will tend to be reproduced under subsequent, equivalent circum- AVE ranging from 0.61 to 87, and factor loadings ranging from 0.73
stances from habit rather than thought.” Satisfactory experiences to 0.95.
with a behavior are a key condition for habit development, as they in- Triandis [70] indicated that habits can be measured by the fre-
crease one's tendency to repeat the same course of action again under quency of the occurrence of certain behavior. Some studies have mea-
similar circumstances [2]. Support for the role of satisfaction in habit sured habit by assessing the frequency of past behavior [4,68].
formation is also provided by Lankton et al. [41] and Limayem, et al. Because a history of repetition forms the basis of a habit, using the
[47]. Therefore, the following hypothesis is proposed. self-reported frequency of a past behavior as a measure of habit
appears reasonable at first sight. However, there are a number of
H4. Buyers' satisfaction is positively related to their habit of shopping problems related to this [76]. First, although habit implies repeated
from an online seller. behavior, repeated behavior need not necessarily involve habituation.
Second, it is unlikely that there is always a linear relationship be-
2.2.4. Perceived value and satisfaction tween behavioral frequency and habit, since it implies that every rep-
Theoretically, perceived value can be considered a cognition- etition, whether early on in the habit formation process or after a
based construct for capturing the benefit-cost discrepancy, whereas large number of repetitions, would result in the same increase in au-
satisfaction is primarily an affective evaluative response [55]. The tomaticity [40]. The third problem is that self-reported frequency
social science literature indicates that an affective response is trig- measures might be unreliable, especially if the subjects are requested
gered by cognitive thought processes [80], suggesting that value to recall instances of their behavior. Therefore, two alternative mea-
judgments affect people's perception of satisfaction. The theoretical sures of habit strength have been proposed: the Response Frequency
justification for the relationship between value and satisfaction can (RF) measure, and the Self-Reported Habit Index (SRHI).
also be attributed to Bagozzi's [9] framework of self-regulatory mecha- The RF measure [75] assesses generalized habits across different situ-
nism: appraisal processes→ emotional response →coping response. ations (e.g. car use when traveling to different locations). The RF measure
This indicates that a cognitively-oriented appraisal of perceived value has two limitations. First, because it requires the participants to respond
leads to emotionally satisfying judgments. Similarly, the “two-appraisal” as quickly as possible and thus needs a controlled environment, it is dif-
satisfaction model [54] posited that the cognitive judgment of quality ficult to employ in self-administered questionnaires. Another limitation
and disconfirmation and the affective experience of consumption are is that the RF measure requires piloting and pretesting for every new
the two determinants of satisfaction. In fact, the cognitive judgment of habit or habit context [76]. Based on the above discussion, we adopted
quality (what the product/service gives me) and affect experience SRHI [74] in order to measure habit. The SRHI is a 12-item instrument
(how the product makes me feel) could refer to utilitarian and hedonic for assessing a respondent's subjective experience of several features of
values separately. Further, previous studies have provided empirical a habit. Those features include the history of repetition, automaticity
evidence to support the link between perceived value and satisfaction (unintentionality, uncontrollability, lack of awareness, and efficiency)
[48,58]. Therefore, the following hypothesis is proposed. and the expression of self-identity. The SRHI has been shown to have ex-
cellent internal reliability, high test–retest reliability and good conver-
H5. Perceived value is positively related to buyer satisfaction. gent validity, to correlate well with the RF measure and past behavior
measures, and to differentiate between behaviors that are performed
2.3. Satisfaction and trust with different frequencies [74].
The items used to measure repeat purchase intention were adapted
Generally, people who have had positive experiences of online pur- from [57,59], while the items for measuring trust were based on [25].
chasing will tend to trust online sellers [77,79]. This is because satisfac- The items for measuring familiarity were adapted from Gefen [23] and
tion with past outcomes increases customers' confidence that they are those for measuring satisfaction were adapted from Oliver [53] and
not being taken advantage of and that online sellers are concerned Oliver and Swan [55]. Further, items for measuring utilitarian and he-
about their welfare during the transactions [41]. Flavia´n et al. [21] donic values were adapted from Arnold and Reynolds [7] to fit the
pointed out that the degree of trust is a consequence of the capacity of online shopping context. For all of the measures, a seven-point Likert
C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845 839

scale was adopted with anchors ranging from strongly disagree (1) to interchangeable. Third, the utilitarian and hedonic values are theoreti-
strongly agree (7). cally independent. They are not highly correlated. The second order
construct (i.e. value) was approximated using the approach of repeated
3.2. Survey administration indicators suggested by Chin et al. because it is the easiest approach to
implement [16]. In this approach, a second order construct is directly
The research model was tested with data from the customers of the measured via observed variables for all of the first order constructs.
Yahoo!Kimo shopping mall. This mall was chosen because it is the most While this approach repeats the number of manifest variables used,
popular online shopping website in Taiwan. In 2001, Yahoo in Taiwan the model can be estimated using the standard PLS algorithm [16].
merged with Kimo, which was well known for its web portal and search The repeated indicators approach can be used with approximately
engine. Yahoo!Kimo is now the largest web portal and e-commerce equal numbers of indicators for each construct. Chin, under the FAQ
website in Taiwan. Yahoo!Kimo offers commerce-related services, heading of his PLS webpage,1 indicates that the approach of repeated in-
such as an auction, super mall, and shopping mall. The auction website dicators will cause the R-square for the formative second-order con-
allows individual sellers or small businesses to offer their items for auc- structs to end up as 1.0.
tion. The super mall is an electronic marketplace that allows small busi- The adequacy of the measurement model was evaluated based on
nesses to create and maintain online shops. The shopping mall is an the criteria of reliability, convergent validity, and discriminant validi-
electronic marketplace operated by Yahoo!Kimo itself to sell products ty. Reliability was examined based on the composite reliability values.
to consumers. The shopping mall offers 13 categories of commodity, in- Table 3 shows that all of the values are above 0.7, satisfying the com-
cluding computers, electronics, fragrances, beauty products, clothing, monly acceptable level. The convergent validity of the scales was
luxury goods, watches, shoes, furniture/bedroom decoration, books, assessed by two criteria [22]: (1) all indicator loadings should be sig-
DVDs, etc. The shopping mall has over 2500 suppliers and provides nificant and exceed 0.7 and (2) the average variance extracted (AVE)
over 400,000 kinds of commodity. In order to target the online cus- by each construct should exceed the variance due to the measurement
tomers of the Yahoo!Kimo shopping mall, a web-based survey was error for that construct (i.e., AVE should exceed 0.50). Table 4 shows
employed. A banner with a hyperlink to our web survey was published that all of the items exhibit a loading higher than 0.7 on their respec-
via a number of bulletin board systems (BBS), chat rooms and virtual tive constructs, and Table 3 shows that all of the AVEs range from 0.66
communities. In addition, individuals with online auction experience to 0.91, thus satisfying both criteria for convergent validity.
were cordially invited to support our survey. The respondents were Discriminant validity was examined using the following two tests.
instructed to answer all of the questions based on their shopping expe- First, the cross-factor loadings (Table 4) indicate good discriminant
rience with the Yahoo!Kimo shopping mall. Three MP3 players were validity because the loading of each measurement item on its assigned
used as the incentive for participation. The web survey yielded a total latent variable is larger than its loading on any other construct [14]. Sec-
of 454 complete, valid responses for the data analysis. Table 2 lists the ond, the square root of the AVE from the construct is much larger than
demographic information about the respondents. the correlation shared between the construct and other constructs in
the model (Table 5) [22].
3.3. Data analysis Two tests were performed to examine the possibility of a common
method bias. First, the extent of this bias was assessed using Harman's
A two-step approach, recommended by Anderson and Gerbing [5], one-factor test, for which all of the principal constructs were entered
was adopted for the data analysis. The first step involves the analysis into a principal component analysis [62]. Evidence for common method
of the measurement model while the second step tests the structural bias exists when a general construct accounts for the majority of the co-
relationships among the latent constructs. The aim of the two-step variance among all of the constructs. The results show that the seven
approach is to establish the reliability and validity of the measures be- factors combined account for 77% of the total variance but that the
fore assessing the structural relationship of the model. SmartPLS 2.0 first (largest) factor accounts for only 25.28% of it. This indicates that
M3 was used because it allows latent constructs to be modeled as for- there is no general factor. Second, a latent method factor (common la-
mative or reflective indicators. PLS places minimal restrictions on the tent variable) was added to the structural model to assess the method
measurement scales, sample size, and residual distribution [15]. variance. Each indicator in the structural model is specified to be deter-
mined by its substantive (theoretical) construct, the method factor, and
3.3.1. Measurement model measurement error. However, SmartPLS does not accommodate ran-
The rationale for operationalizing value as a formative second-order dom errors and does not allow an indicator to be determined by more
construct is threefold [61]. First, according to the conceptual definition than one construct. To finesse this constraint, we converted each indica-
of perceived value, utilitarian and hedonic values should be regarded tor into a single-indicator construct, as suggested by Saraf et al. [66]. As
as forming value rather than the other way around. Second, utilitarian a result, all of the major constructs of interest and the method factor be-
and hedonic values are clearly unique, distinguishable, and not come second-order constructs, except for value (third-order construct).
We included in the SmartPLS model a common method factor which
Table 2 links to all the single-indicator constructs that were converted from
Demographic information about the respondents (N = 454). the observed indicators. For each single-indicator construct, we exam-
ined the coefficients of the two incoming paths from its substantive
Measure Items Freq. Percent Measure Items Freq. Percent
construct and the method factor. These two path coefficients are equiv-
Gender Male 207 45.6 Gender Female 247 54.4 alent to the observed indicator's loadings on its substantive construct
Age b20 28 6.2 Education High 52 11.5
and the method factor, and can be used to assess common method
school
20– 148 32.6 College 63 13.9 bias [66]. According to Saraf et al. [66], the squared values of the method
24 factor loadings were interpreted as the percentage of indicator variance
25– 126 27.7 University 277 61.0 caused by the method, whereas the squared loadings of the substantive
29
constructs were interpreted as the percentage of the indicator variance
30 ~ 152 33.5 Graduate 62 13.6
school caused by the substantive constructs. Common method bias is unlikely
Shopping 1–2 137 30.2 Internet b6 53 11.7 to be a serious concern if the following two criteria are fulfilled: (1) the
frequency 3–6 187 41.2 experience (in 6–8 94 20.7
(per year) 7–11 81 17.8 years) 9–10 193 42.5 1
Chin's PLS FAQ webpage—http://disc-nt.cba.uh.edu/chin/plsfaq/plsfaq.htm (last
12 ~ 49 10.8 11 ~ 114 25.1
accessed 6 February 2011).
840 C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845

Table 3 Table 5
Descriptive statistics for the constructs. Correlation among constructs and the square root of the AVE.

Constructs Items Composite reliability Mean (STD) AVE UV HV SA FA HA TR RI

Utilitarian Value (UV) 5 0.91 5.46 (1.15) 0.66 UV 0.81


Hedonic Value (HV) 5 0.91 4.72 (1.26) 0.67 HV 0.47 0.82
Satisfaction (SA) 3 0.94 5.14 (1.08) 0.84 SA 0.56 0.65 0.92
Familiarity (FA) 3 0.93 5.64 (1.00) 0.83 FA 0.55 0.44 0.58 0.91
Habit (HA) 11 0.97 4.73 (1.29) 0.75 HA 0.40 0.60 0.65 0.49 0.87
Trust (TR) 4 0.92 4.79 (1.13) 0.75 TR 0.44 0.49 0.68 0.48 0.58 0.87
Repeat Purchase Intention (RI) 3 0.97 5.31 (1.03) 0.91 RI 0.53 0.51 0.67 0.60 0.69 0.59 0.95

Note: Diagonal elements (in bold) are the square root of the average variance extracted
(AVE).
method factor loadings are insignificant and (2) the indicators' substan-
tive variances are substantially greater than their method variances. The
results show that 27 of the 34 method factor loadings are insignificant regression, in which we compare the results of two models (i.e., one
and that the indicators' substantive variances are substantially greater with and one without the interaction construct) [16]. Therefore, we
than their method variances. This indicates that common method bias first examined the main effect model without including habit as a mod-
is not a significant problem with regard to our data. erating variable. Fig. 2 indicated that all paths exhibit a P-value of less
In addition, two approaches were used to assess the degree of than 0.05. The significance of all paths was assessed via 500 bootstrap
multicollinearity: variance inflation factors (VIF) and condition numbers. runs. Overall, the model accounts for 53.4% of the variance of repeat
We conducted a regression analysis by modeling repeat purchase inten- purchase intention. The path coefficient between habit and repeat pur-
tion as the dependent variable and the other six variables as the indepen- chase intention is 0.522, while that between trust and repurchase inten-
dent variables. The VIF ranges from 1.678 to 2.962, which is well below tion is 0.291. Next, we examined the interaction effect model including
the suggested threshold of 3–5 [27]. The condition number equals the habit as a moderator. Fig. 3 indicated that all paths exhibit a P-value of
square root of the largest eigenvalue divided by the smallest eigenvalue. less than 0.05 and, overall, the model accounts for 55.8% of the variance
Belsley et al. [11] suggested that condition numbers less than 10 indicate of repeat purchase intention. The path coefficient between habit and
a weak multicollinearity problem. In our study, the condition number is repurchase intention is 0.519 and that between trust and repeat pur-
2.53 (√(8.60/1.34)), which is below the threshold. Therefore, no signifi- chase intention is 0.277, which is lower than that in the main effect
cant multicollinearity problem exists with regard to our data. model, without modeling habit as moderating variable.
After analyzing the main effect model and interaction effect
3.3.2. Structural model model, we compared the R 2 of both models in order to assess the in-
In formulating and testing for interaction effects using PLS, we need teraction effect [16]. The difference between the R-squares is used to
to follow a hierarchical process that is similar to that used in multiple assess the overall effect size f 2 for the interaction, where .02, 0.15, and
0.35 have been suggested to be small, moderate, and large effects, re-
Table 4 spectively [19]. It is important to understand that a small f 2 does not
PLS confirmatory factor analysis and cross-loadings. necessarily imply an unimportant effect [16].
Based on the hierarchical difference test, the interaction effect was
UV HV SA FA HA TR RI
found to have an effect size f 2 of 0.054, which lies between the small
UV1 0.81 0.35 0.48 0.46 0.34 0.35 0.44 and medium effect size. Fig. 3 shows that the inclusion of the interac-
UV2 0.80 0.30 0.42 0.49 0.23 0.28 0.41
UV3 0.84 0.43 0.46 0.46 0.35 0.43 0.43
tion effect with a strong beta of −0.156 increases R 2 for repeat pur-
UV4 0.80 0.46 0.47 0.40 0.36 0.40 0.41 chase intention to 0.558. As indicated in Table 6, the interaction
UV5 0.80 0.34 0.44 0.45 0.33 0.31 0.45 effect model possesses significantly higher explanatory power than
HV1 0.36 0.85 0.53 0.32 0.51 0.42 0.37 the main effect model. Therefore, habit has a significantly negative ef-
HV2 0.32 0.85 0.44 0.26 0.45 0.30 0.33
fect on the relationship between trust and repeat purchase intention.
HV3 0.36 0.84 0.52 0.37 0.48 0.40 0.43
HV4 0.32 0.76 0.48 0.31 0.44 0.39 0.34 Further, we also examined the effect of the respondents answering
HV5 0.53 0.81 0.67 0.52 0.58 0.50 0.60 11 habit questions on their answers about repeat purchases intention.
SA1 0.52 0.59 0.92 0.56 0.58 0.65 0.65 We conducted another analysis by remodeling habit with five indica-
SA2 0.49 0.60 0.90 0.50 0.63 0.62 0.62 tors with a higher factor loading. The path coefficient for the relation-
SA3 0.53 0.59 0.92 0.54 0.58 0.60 0.61
FA1 0.47 0.44 0.52 0.90 0.47 0.43 0.56
ship between habit and repeat purchase intention becomes 0.475,
FA2 0.52 0.39 0.56 0.92 0.44 0.46 0.56 whereas the path coefficient for the original model with habit having
FA3 0.51 0.37 0.51 0.90 0.42 0.42 0.53 11 indicators is 0.519. The path coefficient difference is 0.044, which is
HA1 0.36 0.50 0.56 0.40 0.86 0.48 0.62 insignificant (t= 0.77) based on the formula 2 proposed by Johnson et
HA2 0.37 0.51 0.56 0.44 0.88 0.49 0.63
al. [35]. Accordingly, the 11 habit questions do not cause significant
HA3 0.37 0.49 0.56 0.46 0.89 0.47 0.64
HA4 0.35 0.50 0.58 0.42 0.87 0.51 0.61 problems.
HA5 0.39 0.55 0.59 0.50 0.87 0.52 0.64 Finally, further data analysis was conducted to examine the correla-
HA6 0.34 0.53 0.56 0.41 0.90 0.50 0.58 tion between shopping frequency (the number of shop experiences
HA7 0.23 0.50 0.48 0.36 0.79 0.47 0.46 over the past 12 months) and the self-reported habit index, and the influ-
HA8 0.40 0.53 0.60 0.50 0.80 0.49 0.63
HA9 0.35 0.53 0.57 0.42 0.90 0.53 0.60
ence of shopping frequency on habit. The results show that the correlation
HA10 0.31 0.54 0.57 0.37 0.88 0.52 0.55 coefficient is 0.264 and the path coefficient is 0.168. Both of the coeffi-
HA11 0.28 0.57 0.55 0.36 0.85 0.52 0.54 cients are higher than those in Limayem et al.'s study [47], which are
TR1 0.42 0.43 0.61 0.44 0.49 0.85 0.52 0.193 (correlation coefficient) and 0.115 (path coefficient) respectively.
TR2 0.36 0.41 0.54 0.38 0.49 0.86 0.48
Although the correlation coefficient between shopping frequency and
TR3 0.32 0.41 0.56 0.39 0.53 0.89 0.49
TR4 0.41 0.46 0.64 0.45 0.49 0.87 0.56 habit is relatively low, this does not imply that our self-reported habit
RI1 0.49 0.49 0.65 0.56 0.68 0.59 0.95 index has a low validity, since shopping frequency is the history of
RI2 0.52 0.51 0.64 0.58 0.67 0.54 0.96
RI3 0.50 0.46 0.63 0.59 0.63 0.56 0.95 2
t = (ßi − ßj) / √[(var(ßi) + var(ßj) − 2cov(ßi, ßj)]; where ßi = path coefficient asso-
Note: Bold numbers indicate item loadings on the assigned constructs. ciated with path i; var(ßi) = variance of ßi; cov(ßi, ßj) = covariance between ßi and ßj.
C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845 841

Familiarity * p < .05, ** p < .01, *** p < .001


0.114*

Utilitarian 0.536*** (R2 = 0.468)


Value
0.234***
Value Habit

Hedonic
Value 0.630*** 0.421*** 0.522***
0.710*** (R2 = 0.466) (R2 = 0.534)

(R2 = 0.504) Satisfaction Trust Repeat Purchase


Intention
0.682*** 0.291***

Fig. 2. Main effect model: habit as a control variable.

repetition, which is only one of the features of SRHI and, therefore, not stated that trust is a threshold variable in contributing to the favorable at-
necessarily strongly correlated to habit [76]. For example, a consumer titude toward online purchasing. This means that, once a certain evalua-
who purchases luxury goods once or twice a year via the Yahoo!Kimo tion level is reached, the variable no longer contributes to the repeat
shopping mall can still be considered as a habitual buyer if he/she purchase intention. One of the possible conditions for trust reaching the
shopped there whenever he/she wanted to buy luxury goods. In other threshold level is that buyers perceive no or low uncertainty.
words, he/she shopped on Yahoo!Kimo shopping mall automatically In addition, we identified the three antecedents of habit as satis-
and without thinking but not necessarily at a high frequency. Shopping faction, value and familiarity, whereas value has a positive effect on
frequency or experience is an important buyer-seller interaction variable satisfaction and satisfaction also has a significant impact on trust.
that reflects buyers' primary affiliations with online sellers [36]. To aug- All of the antecedents are significant predictors of habit and the ex-
ment our understanding of the interrelationships between the relevant tent of the explained variance in habit suggests that these are possibly
variables in the research model, we further examined the path differences among the most important antecedents of habit. Comparing the im-
between the low and high shopping frequency groups. Because shopping portance of the three antecedents to habit development, satisfaction
frequency is not a categorical variable, the groups were divided into high plays a dominant role, followed by value, then familiarity. The find-
shopping frequency (N1 =212) and low shopping frequency (N2 =242) ings support the well-investigated attitudinal framework in which
groups using the median [10]. Based on the formula proposed by Johnson cognition leads to affect by considering value as cognition and satis-
et al. [35], all of the path differences are insignificant, with t valves ranging faction as affect [80]. Further data analysis based on Baron and
from 0.305 to 1.620 (see Table 7). Kenny's [10] procedure indicates that satisfaction partially mediates
the impact of value on habit. There are two components of value, util-
4. Discussion and implications itarian value and hedonic value, with the latter playing the more im-
portant role. In addition, it appears that the formation of an online
4.1. Summary of the results shopping habit is mainly driven by satisfactory experiences with the
shopping goals—pursing utilitarian and hedonic values.
The purpose of this study is to examine thoroughly the complex rela-
tionships between habit, trust, and repeat purchase intention in the con- 4.2. Implications for theory
text of online shopping. The major concerns are the moderating effect of
habit on the relationship between trust and repeat purchase intention Based on the findings of this study, we would like to share several
and what the antecedents of habit will be. points that are worthy of consideration for theory development. First,
The results indicate that trust has a significant effect on repeat pur- many studies consider repeat purchase behavior as being guided by rea-
chase intention and habit exerts a negative moderating effect on the rela- soning. Accordingly, much effort is devoted to trying to explain repeat
tionship between trust and repeat purchase intention. The interaction purchase intention from the perspectives of perceived usefulness, per-
between trust and habit in the prediction of repeat purchase intention ceived ease of use, perceived risk, trust, etc. However, as online shopping
suggests that there is a tradeoff between trust and habit. In other words, becomes more popular and thus people shop at an online store without
a stronger habit will reduce the influence of trust on repeat purchase in- much reasoning process, habit may play a role in repeat purchase inten-
tention. On the other hand, when the habit is weak, trust will dominate tion. In the past, some studies on online repeat purchase report that
the influence on repeat purchase intention. Van der Heijden et al. [71] no significant relationship exists between trust and repeat purchase

Familiarity * p < .05, ** p < .01, *** p < .001


0.114*

Utilitarian 0.536*** (R2 = 0.468)


Value
0.232***
Value Habit

Hedonic 0.519***
Value 0.630*** 0.710*** 0.421*** (R2 = 0.466) -0.156**

(R2 = 0.504) Trust Repeat Purchase


Satisfaction
Intention
0.682*** 0.277***
(R2 = 0.558)

Fig. 3. Interaction effect model: habit as a moderator.


842 C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845

Table 6 suggest that satisfactory experiences enhance the tendency to engage


Effect size of the competing models. in repeat purchase because utilitarian and hedonic values are strongly
Model R2 f2a associated with the goals of online buyers.
Fifth, compulsive or addictive online buying is a form of unregulated
1. Main effects model (with habit as a control variable) 0.534 0.054
2. Interaction effect model (with habit as a moderator) 0.558 consumer behavior [42]. LaRose and Easti [42] found that addiction is a
a 2 powerful predictor of online shopping activity. Habit formation and
f = [R2(Interaction Effect Model) − R2(Main effect Model)] / [1 − R2(Interaction
Effect Model)]. habit persistence as the foundations of addiction have been popular
topics in economic studies on consumer behavior [50]. Accordingly, an
interesting area for future research is to investigate the relationship be-
intention [13]. Apparently, such reports contradict the mainstream view tween habit and addiction and see whether addiction has a stronger
that has been established in the field. It is here that the theoretical rele- suppressive effect than habit on the relationship between trust and re-
vance of detecting the moderating effect of habit on the relationship be- peat purchase intention.
tween trust and repeat purchase intention becomes evident. We Finally, although habit cannot be determined by simply looking at the
therefore hope that the present study will contribute to the further de- frequency of past behavior [74], shopping frequency is still a necessary
velopment of the concept of the online shopping habit. condition for the online shopping habit to develop. Product types are cor-
Second, habit and trust represent two different promoters of repeat related with online shopping frequency. For example, an individual may
purchase intention. Often, trust-based behavior results from a mixture purchase clothes every season but only purchase luxury goods once a
of cognitive and emotional trust [64], whereas habit is an automatic year. Therefore, an interesting area for future research is to examine
behavioral response triggered by a situational stimulus without being the relationship between product type and online shopping habit.
preceded by a cognitive analysis process. Therefore, when online shop-
ping behavior is repeatedly executed in a stable context and becomes 4.3. Implications for practice
habitual, the need to engage in the cognitive evaluation of the online
seller's trustworthiness will be suppressed. However, the emotion- Many studies have demonstrated that, especially for online shopping
driven form of trust may still exert its influence on repeat purchase in- websites, gaining consumer trust is the first step towards inducing cus-
tention. Therefore, it is important to examine the interaction of these tomers' purchase intentions and repeat purchase intentions as well
two variables rather than assuming that they both operate similarly. [25,29,39]. Our findings further indicate that habit exerts a significant
Further, it is also important to search for moderating variables that moderating effect on the relationship between trust and repeat purchase
turn simple, main effects into more insightful conditional relationships. intention. As Van der Heijden et al. [71] suggested, trust is a threshold
Third, our findings show that the link between trust and repeat pur- variable. This implies that trust is still the primary factor in stimulating
chase intention is rather complex. Adding habit as a moderator is a first consumers' repeat purchase intentions but that habit will have moderat-
step toward establishing a better understanding of this relationship. Fu- ing effect on this relationship once trust has reached a certain level. So,
ture research should continue to explore the complex relationship be- how to build customers' trust is still a goal with a higher priority. A
tween habit, trust, and repeat purchase intention. For example, what buyer may or may not purchase products from a trustworthy seller, but
would be the threshold level of trust, at which the influence of trust on he/she will definitely not purchase products from an untrustworthy
repeat purchase intention will decrease and the role of habit will become one. Without winning customer trust first, there is no point in instigating
influential? It would also be interesting to know whether, in an extreme customers' habits. Gaining consumer trust is largely under the control of
case, the effect of trust will be nullified by the effect of habit. In other online sellers. For example, providing fair transactions by keeping prom-
words, at what level of trust will the online shopping habit become the ises and fulfilling obligations in terms of product and service qualities
main driver of repeat purchase intention? throughout the whole transaction process and even after sales service
Fourth, the antecedents of habit include satisfaction, value and famil- is one of the fundamental goals of building trust.
iarity. They are ranked in importance as follows: satisfaction, value and However, once trust building reaches a sufficient level, the online
familiarity. Among them, value also has a high impact on satisfaction. It sellers should try to develop customers' habits of shopping at their
implies that value, including utilitarian and hedonic value, is the most web stores. In other words, sellers should try to encourage customers
important driver of habit formation. In fact, utilitarian and hedonic to visit their web stores automatically whenever they need to buy
values are viewed as shopping goals [12]. No matter whether consumers something provided by them since, at this moment, habit has a more
care more about utilitarian or hedonic value, the fundamental issue is if a significant impact than trust on repeat purchase intention.
web store can fulfill their shopping goals or not. The results indicate that The next challenge for online shopping websites becomes how to
both perceived value and satisfaction have strong effects on habit devel- develop customers' habit of shopping with them. Based on our find-
opment, which supports Aarts and Dijksterhuis' [1] notion that habits are ings, satisfaction, value and familiarity are the three significant ante-
a form of goal-directed automatic behavior that are activated on the in- cedents of habit formation. Among these, satisfaction is the most
stigation of a goal. People automatically visit an online shopping website significant factor and value will have a positive impact on satisfaction.
and purchase products only if there is a reason to do so. Once the goals This means that, if online shopping websites can provide greater
have been mostly achieved, consumers feel satisfied. Our findings value for customers, it will increase the customers' satisfaction and
thus have a positive impact on developing the customers' habits.
Among the three antecedents of habit, let us discuss how online
Table 7
Path differences between the low and high shopping frequency groups.
shopping websites can provide greater values for their customers first.
Our research indicates that there are two kinds of value. One is utilitar-
Path Low frequency-β High frequency-β t-statistics ian value and the other is hedonic value. Regarding utilitarian value, on-
H1: Habit as a moderator − 0.143⁎ − 0.187⁎ 0.373 line shopping websites should provide the correct, wide selection of
H2: Familiarity → Habit 0.040 0.142 1.056 products for their target customers. They also have to provide an effi-
H3: Value → Habit 0.308⁎⁎⁎ 0.210⁎ 0.628
cient and effective search function and critical product information in
H4: Satisfaction → Habit 0.383⁎⁎⁎ 0.427⁎⁎⁎ 0.305
H5: Value → Satisfaction 0.663⁎⁎⁎ 0.749⁎⁎⁎ 1.620 order to help customers to find the desired products efficiently and ef-
H6: Satisfaction → Trust 0.647⁎⁎⁎ 0.712⁎⁎⁎ 1.197 fectively. In addition, online shopping websites should provide a safe
⁎ p b .05.
payment mechanism and quick delivery service. Regarding hedonic
⁎⁎ p b .01. value, online shopping websites should try to enable the customers
⁎⁎⁎ p b .001. enjoy the whole transaction process. It could be the colorful design of
C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845 843

the user interface, having fun during the transaction process, such as relationship between trust and repeat purchase intention and what the
pop-up discount offers during the search and purchase process, surpris- antecedents of habit will be. As verified by our data, there is an interaction
ing marketing strategies, warm greeting cards to increase customer sat- effect between trust and habit in the prediction of repeat purchase inten-
isfaction, etc. To attract buyers who are motivated by different hedonic tion. Although online repeat purchase intention is influenced by the ratio-
reasons, online sellers may need to focus on the experiential aspect of nal analysis of trust in the online seller, habit is an even more important
the website, positioning the shopping experience as an adventure or a driving force. Further, the three antecedents of habit are satisfaction,
chance to release stress or alleviate a negative mood [9]. value and familiarity, ranked in descending importance. In conclusion,
An extremely interesting example of hedonic value is the feature our study highlights the importance of the role of the online shopping
provided by WOOT! (www.woot.com). It focuses on selling cool, habit and its antecedents in the achievement of online customer reten-
cheap stuff and encouraging unfiltered community discussion about tion. A more refined knowledge about the proposed variables and rela-
it. It sells one item only per day. That is, it offers a new item every sin- tionships may ultimately benefit online sellers and buyers alike in their
gle day. It is very common for its product descriptions to mock the attempts to cope successfully with the challenges posed by the ever
product, the customer, or Woot itself. Its marketing depends heavily more exciting and versatile e-commerce applications.
on discussions among customers. The customers can experience the
hedonic value by enjoying the surprise of having a new item every
day, the acknowledgment of their posts and the woot-style product
Appendix A. Questionnaire items
descriptions. Finally, even our findings indicate that the weight of he-
donic value is relatively greater than that of utilitarian value, so online
shopping websites should provide adequate utilitarian value while
Utilitarian Value (UV)
attempting to provide hedonic value.
UV1 Using the Yahoo!Kimo shopping mall is a convenient way to shop.
Since our research finds that value has a significant impact on satis- UV2 I can use the Yahoo!Kimo shopping mall to shop anywhere and anytime.
faction, all of the above-mentioned methods will reinforce customer UV3 I thought that the Yahoo!Kimo shopping mall provided detailed
satisfaction too. In addition to these methods, satisfaction could be im- information about the products featured.
proved by making sure that both the product quality and service quality UV4 The product information provided by the Yahoo!Kimo shopping mall is up-
to-date.
fulfill the customer's expectations. For service quality, it is very impor-
UV5 This web site provided a variety of product offerings.
tant to provide a good service not only through the whole transaction
process but also in terms of after-sales service. In addition to satisfaction Hedonic Value (HV)
and value, familiarity is another important antecedent of habit forma- HV1 I find shopping at the Yahoo!Kimo shopping mall stimulating.
tion. Familiarity refers to knowledge and a friendly experience when HV2 To me, shopping at the Yahoo!Kimo shopping mall is a way of relieving
stress.
using online shopping websites. Definitely, the more often a customer HV3 I enjoy shopping at the Yahoo!Kimo shopping mall for my friends and
visits an online website, the more familiar with the website he/she family.
will become. However, online shopping websites can proactively help HV4 I enjoy socializing with others when I shop at the Yahoo!Kimo shopping
customers to become more familiar with websites by providing a very mall.
HV5 I think that purchasing products from the Yahoo!Kimo shopping mall is
user-friendly interface, website map, introduction to new users, FAQ,
interesting.
intelligent pop-up help windows, customer call center, etc.
Satisfaction (SA)
4.4. Limitations SA1 I feel good regarding my decision to purchase products from the Yahoo!
Kimo shopping mall.
SA2 I think that purchasing products from the Yahoo!Kimo shopping mall is a
Even though we tried our best to design and implement this re- good idea.
search, there are still some limitations. The results should be inter- SA3 Overall, I am satisfied with the experience of purchasing products from the
preted carefully in the light of these limitations. First, our sample Yahoo!Kimo shopping mall.
comprised only active online consumers. The results may have been
Familiarity (FA)
influenced by self-selection bias. Consumers who had already ceased
FA1 I am familiar with the Yahoo!Kimo shopping mall.
to purchase products from the Yahoo!Kimo shopping mall might FA2 I am familiar with the processes of purchasing products from the Yahoo!
have different perceptions about the provided value, satisfaction, fa- Kimo shopping mall.
miliarity, trust, and habit. Therefore, the results should be interpreted FA3 I am familiar with searching for products at the Yahoo!Kimo shopping mall.
as only explaining the repeat purchase intentions of current online
Trust (TR)
shopping customers. Establishing whether the results can be general- TR1 Based on my experience with the Yahoo!Kimo shopping mall in the past, I
ized to non-customers or disaffected customers will require additional know it is trustworthy.
research. Second, as the data are cross-sectional, all of the statistically TR2 Based on my experience with the Yahoo!Kimo shopping mall in the past, I
supported relationships can only be viewed as tentative. Third, the know that it cares about its customers.
TR3 Based on my experience with the Yahoo!Kimo shopping mall in the past, I
data came from only one online store (Yahoo!Kimo shopping mall),
know that it is not opportunistic.
even though the Yahoo-Kimo shopping mall is the largest online store TR4 Based on my experience with the Yahoo!Kimo shopping mall in the past, I
in Taiwan. However, the advantage is that the Yahoo-Kimo shopping know that it keeps its promises to its customers.
mall sells numerous varieties of product and, therefore, the results are Habit (HA)
not limited to the intention of purchasing a particular type of product. Shopping at the Yahoo!Kimo shopping mall is something…
HA1 I do frequently.
HA2 I do automatically.
5. Conclusion HA3 I do without having to consciously remember.
HA4 that makes me feel weird if I do not do it.
Since repeat customers are five times more profitable than new cus- HA5 that would require effort not to do it.
HA6 I do without thinking.
tomers, it is important for online sellers to understand why buyers are
HA7 that has become a routine for me.
willing to engage in repeat purchases through some online stores. In the HA8 I have been doing for a long time.
past, trust has been regarded as a critical factor in governing online shop- HA9 I would find hard not to do.
ping behavior [64]. In addition, it was found that the impact of trust may HA10 I have no need to think about doing.
decrease as the online shopping experience increases [24,71]. The major HA11 that's typically “me”.

concerns of this research are the moderating effect of habit on the (continued on next page)
844 C-M. Chiu et al. / Decision Support Systems 53 (2012) 835–845

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Chao-Min Chiu is a Professor in the Department of Informa-


tion Management at the National Sun Yat-sen University, Tai-
wan. He holds a PhD in Management from the Rutgers
University. His research interests include electronic commerce,
virtual communities, and knowledge management. His re-
search has appeared in Decision Support Systems, Information
& Management, Information Systems Journal, International Jour-
nal of Human-Computer Studies, Computers & Education, Com-
puters in Human Behavior, Electronic Commerce Research and
Applications, Behaviour & Information Technology, and others.

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