Perceived price, eTrust, eSatisfaction, and online repurchase intention: A study of young online consumer behavior

Authors

  • Khalikussabir Khalikussabir Department of Management, Faculty of Economics and Business, University of Islam Malang, Malang
  • Abdul Waris Department of Business Administration, State Polytechnic of Malang, Malang
  • Budi Wahono Department of Management, Faculty of Economics and Business, University of Islam Malang, Malang

DOI:

https://doi.org/10.31106/jema.v19i1.11218

Keywords:

Repurchase Intention, Price, Satisfaction, Perceived Trust, Online Marketplace

Abstract

The online marketplace industry in Indonesia is growing rapidly, becoming an important contributor to Indonesia's economy. However, the massive discount price strategy and the dearth of face-to-face interaction in the online marketplace make it harder for any online retailer to build a stronger relationship with their consumers to retain them. Our study offers several contributions and new insights to the marketing literature as few studies have addressed this issue by analyzing it with perceived electronic trust, satisfaction, and repurchase intention into a single framework. This study aims to describe and extend previous studies on the effect of perceived price and trust on repurchase intention by specifically including satisfaction in the middle of associated constructs. This study uses purposive sampling as a sampling technique and a five-point Likert scale survey as a data collection method. A total of 387 valid data were collected and then analyzed by PLS-SEM to test the proposed model. The results of this study strengthen the previous claims that there is a positive partial effect between perceived price, trust, and satisfaction on repurchase intention in the online marketplace. Also, the level of customer satisfaction proved to be a significant construct in forming the association between perceived price, trust, and repurchase intention in the study.

References

Aldas-Manzano, J., Ruiz-Mafe, C., Sanz-Blas, S., & Lassala-Navarré, C. (2011). Internet banking loyalty: evaluating the role of trust, satisfaction, perceived risk and frequency of use. The Service Industries Journal, 31(7), 1165–1190. https://doi.org/10.1080/02642060903433997

Alwi, S. F. S., Ali, S. M., & Nguyen, B. (2017). The importance of ethics in branding: Mediating effects of ethical branding on company reputation and brand loyalty. Business Ethics Quarterly, 27(3), 393–422.

Antwi, S. (2021). “I just like this e-Retailer”: Understanding online consumers repurchase intention from relationship quality perspective. Journal of Retailing and Consumer Services, 61, 102568. https://doi.org/10.1016/j.jretconser.2021.102568

Ariwibowo, D. P. J., & Nugroho, M. A. (2013). Pengaruh trust dan perceived of risk terhadap niat untuk bertransaksi menggunakan e-commerce. Nominal, Barometer Riset Akuntansi Dan Manajemen, 2(1), 11–35. https://doi.org/10.21831/nominal.v2i1.1646

Baddeley, M. (2010). Herding, social influence and economic decision-making: socio-psychological and neuroscientific analyses. Philosophical Transactions of the Royal Society B: Biological Sciences, 365(1538), 281–290. https://doi.org/10.1098/rstb.2009.0169

Büyükdağ, N., Soysal, A. N., & Ki̇tapci, O. (2020). The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research. Journal of Retailing and Consumer Services, 55, 102112. https://doi.org/10.1016/j.jretconser.2020.102112

Capponi, G., Corrocher, N., & Zirulia, L. (2021). Personalized pricing for customer retention: Theory and evidence from mobile communication. Telecommunications Policy, 45(1), 102069. https://doi.org/10.1016/j.telpol.2020.102069

Chang, H. H., Wang, Y.-H., & Yang, W.-Y. (2009). The impact of e-service quality, customer satisfaction and loyalty on e-marketing: Moderating effect of perceived value. Total Quality Management & Business Excellence, 20(4), 423–443. https://doi.org/10.1080/14783360902781923

Chiu, C. M., Fang, Y. H., Cheng, H. L., & Yen, C. (2013). On online repurchase intentions: Antecedents and the moderating role of switching cost. Human Systems Management, 32(4), 283–296.

Davari, A., Iyer, P., & Rokonuzzaman, M. (2016). Identifying the determinants of online retail patronage: A perceived-risk perspective. Journal of Retailing and Consumer Services, 33, 186–193. https://doi.org/10.1016/j.jretconser.2016.08.009

Dimoka. (2010). What Does the Brain Tell Us About Trust and Distrust? Evidence from a Functional Neuroimaging Study. MIS Quarterly, 34(2), 373. https://doi.org/10.2307/20721433

Fang, Y., Qureshi, I., Sun, H., McCole, P., Ramsey, E., & Lim, K. H. (2014). Trust, satisfaction, and online repurchase intention. MIS Quarterly, 38(2), 407-A9.

Faqih, K. M. S. (2016). An empirical analysis of factors predicting the behavioral intention to adopt Internet shopping technology among non-shoppers in a developing country context: Does gender matter? Journal of Retailing and Consumer Services, 30, 140–164. https://doi.org/10.1016/j.jretconser.2016.01.016

Farizan, N., Rohman, F., & Hussein, A. S. (2019). The effect of brand identity, brand image, and perceived value on loyalty with customer satisfaction as mediation variable for costumer fresh juice Bintaro. JURNAL APLIKASI MANAJEMEN, 17(1), 127–132. https://doi.org/10.21776/ub.jam.2019.017.01.14

Gefen, D. (2002). Customer loyalty in e-commerce. Journal of the Association for Information Systems, 3(1), 2.

Gil, M. T., & Jacob, J. (2018). The relationship between green perceived quality and green purchase intention: a three-path mediation approach using green satisfaction and green trust. International Journal of Business Innovation and Research, 15(3), 301. https://doi.org/10.1504/IJBIR.2018.089750

Goel, P., Parayitam, S., Sharma, A., Rana, N. P., & Dwivedi, Y. K. (2022). A moderated mediation model for e-impulse buying tendency, customer satisfaction and intention to continue e-shopping. Journal of Business Research, 142, 1–16. https://doi.org/10.1016/j.jbusres.2021.12.041

Graciola, A. P., De Toni, D., de Lima, V. Z., & Milan, G. S. (2018). Does price sensitivity and price level influence store price image and repurchase intention in retail markets? Journal of Retailing and Consumer Services, 44, 201–213. https://doi.org/10.1016/j.jretconser.2018.06.014

Griva, A. (2022). “I can get no e-satisfaction”. What analytics say? Evidence using satisfaction data from e-commerce. Journal of Retailing and Consumer Services, 66, 102954. https://doi.org/10.1016/j.jretconser.2022.102954

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Planning, 46(1–2), 1–12. https://doi.org/https://doi.org/10.1007/978-3-319-05542-8_15

Hasan, S. (2021). Assessment of electric vehicle repurchase intention: A survey-based study on the Norwegian EV market. Transportation Research Interdisciplinary Perspectives, 11, 100439. https://doi.org/10.1016/j.trip.2021.100439

Helfi, Y., Akbar, F., Pratiwi, D. M., & Maolani, F. M. (2019). How Product Attributes Affect Consumer Decision To Purchase A Premium Scooter Matic? JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 16(1), 93. https://doi.org/10.31106/jema.v16i1.1749

Hinduan, Z. R., Anggraeni, A., & Agia, M. I. (2020). Generation Z in Indonesia: The Self-Driven Digital. In The New Generation Z in Asia: Dynamics, Differences, Digitalisation (pp. 121–134). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80043-220-820201012

Huang, W. Y., & Dubinsky, A. J. (2014). Measuring customer pre-purchase satisfaction in a retail setting. The Service Industries Journal, 34(3), 212–229. https://doi.org/10.1080/02642069.2013.778249

Hung, S.-W., Cheng, M.-J., & Chiu, P.-C. (2019). Do antecedents of trust and satisfaction promote consumer loyalty in physical and virtual stores? a multi-channel view. Service Business, 13(1), 1–23. https://doi.org/10.1007/s11628-018-0364-y

Jain, N. K., Gajjar, H., Shah, B. J., & Sadh, A. (2017). E-fulfillment dimensions and its influence on customers in e-tailing: a critical review. Asia Pacific Journal of Marketing and Logistics, 29(2), 347–369. https://doi.org/10.1108/APJML-11-2015-0167

Javed, M. K., & Wu, M. (2020). Effects of online retailer after delivery services on repurchase intention: An empirical analysis of customers’ past experience and future confidence with the retailer. Journal of Retailing and Consumer Services, 54, 101942. https://doi.org/10.1016/j.jretconser.2019.101942

Jia, L., Xue, G., Fu, Y., & Xu, L. (2018). Factors affecting consumers’ acceptance of e-commerce consumer credit service. International Journal of Information Management, 40, 103–110. https://doi.org/10.1016/j.ijinfomgt.2018.02.002

Kim, B., & Han, I. (2009). The role of trust belief and its antecedents in a community-driven knowledge environment. Journal of the American Society for Information Science and Technology, 60(5), 1012–1026. https://doi.org/10.1002/asi.21041

Kim, H.-W., Xu, Y., & Gupta, S. (2012). Which is more important in Internet shopping, perceived price or trust? Electronic Commerce Research and Applications, 11(3), 241–252. https://doi.org/10.1016/j.elerap.2011.06.003

Kim, M.-J., Chung, N., & Lee, C.-K. (2011). The effect of perceived trust on electronic commerce: Shopping online for tourism products and services in South Korea. Tourism Management, 32(2), 256–265. https://doi.org/10.1016/j.tourman.2010.01.011

Lai, J.-Y., Ulhas, K. R., & Lin, J.-D. (2014). Assessing and managing e-commerce service convenience. Information Systems Frontiers, 16(2), 273–289. https://doi.org/10.1007/s10796-012-9344-2

Lee, L., & Charles, V. (2021). The impact of consumers’ perceptions regarding the ethics of online retailers and promotional strategy on their repurchase intention. International Journal of Information Management, 57, 102264. https://doi.org/10.1016/j.ijinfomgt.2020.102264

Li, X., Zhou, Y., Wong, Y. D., Wang, X., & Yuen, K. F. (2021). What influences panic buying behaviour? A model based on dual-system theory and stimulus-organism-response framework. International Journal of Disaster Risk Reduction, 64, 102484. https://doi.org/10.1016/j.ijdrr.2021.102484

Liang, L. J., Choi, H. C., & Joppe, M. (2018). Exploring the relationship between satisfaction, trust and switching intention, repurchase intention in the context of Airbnb. International Journal of Hospitality Management, 69, 41–48. https://doi.org/10.1016/j.ijhm.2017.10.015

Liu, H.-H., & Chou, H.-Y. (2015). The effects of promotional frames of sales packages on perceived price increases and repurchase intentions. International Journal of Research in Marketing, 32(1), 23–33. https://doi.org/10.1016/j.ijresmar.2014.06.005

Majeed, M., Asare, C., Fatawu, A., & Abubakari, A. (2022). An analysis of the effects of customer satisfaction and engagement on social media on repurchase intention in the hospitality industry. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2028331

Malhotra, N. K. (2012). Basic Marketing Research: Integration of Social Media, International 4th edition. Pearson International Edition.

Morgan, R. M., & Hunt, S. D. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58(3), 20–38. https://doi.org/10.1177/002224299405800302

Park, H., & Joyner Armstrong, C. M. (2019). Is money the biggest driver? Uncovering motives for engaging in online collaborative consumption retail models for apparel. Journal of Retailing and Consumer Services, 51, 42–50. https://doi.org/10.1016/j.jretconser.2019.05.022

Piarna, R., Fathurohman, F., & Purnawan, N. N. (2020). Understanding online shopping adoption: The unified theory of acceptance and the use of technology with perceived risk in millennial consumers context. JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 17(1), 51. https://doi.org/10.31106/jema.v17i1.5050

Razak, N. S. A., Marimuthu, M., Omar, A., & Mamat, M. (2014). Trust and Repurchase Intention on Online Tourism Services among Malaysian Consumers. Procedia - Social and Behavioral Sciences, 130, 577–582. https://doi.org/10.1016/j.sbspro.2014.04.067

Reichheld, F. F., Markey Jr, R. G., & Hopton, C. (2000). E-customer loyalty-applying the traditional rules of business for online success. European Business Journal, 12(4), 173.

Shin, J. I., Chung, K. H., Oh, J. S., & Lee, C. W. (2013). The effect of site quality on repurchase intention in Internet shopping through mediating variables: The case of university students in South Korea. International Journal of Information Management, 33(3), 453–463. https://doi.org/10.1016/j.ijinfomgt.2013.02.003

Sullivan, Y. W., & Kim, D. J. (2018). Assessing the effects of consumers’ product evaluations and trust on repurchase intention in e-commerce environments. International Journal of Information Management, 39, 199–219. https://doi.org/10.1016/j.ijinfomgt.2017.12.008

Trivedi, S. K., & Yadav, M. (2020). Repurchase intentions in Y generation: mediation of trust and e-satisfaction. Marketing Intelligence & Planning, 38(4), 401–415. https://doi.org/10.1108/MIP-02-2019-0072

Tse, T. S. M. (2013). The Marketing Role of the Internet in Launching a Hotel: The Case of Hotel ICON. Journal of Hospitality Marketing & Management, 22(8), 895–908. https://doi.org/10.1080/19368623.2013.734224

Valvi, A. C., & West, D. C. (2013). E-loyalty is not all about trust, price also matters: extending expectation-confirmation theory in bookselling websites. Journal of Electronic Commerce Research, 14(1), 99.

Wang, L., Law, R., Guillet, B. D., Hung, K., & Fong, D. K. C. (2015). Impact of hotel website quality on online booking intentions: eTrust as a mediator. International Journal of Hospitality Management, 47, 108–115. https://doi.org/10.1016/j.ijhm.2015.03.012

Weedige, Ouyang, Gao, & Liu. (2019). Decision Making in Personal Insurance: Impact of Insurance Literacy. Sustainability, 11(23), 6795. https://doi.org/10.3390/su11236795

Wu, I.-L. (2013). The antecedents of customer satisfaction and its link to complaint intentions in online shopping: An integration of justice, technology, and trust. International Journal of Information Management, 33(1), 166–176. https://doi.org/10.1016/j.ijinfomgt.2012.09.001

Ye, Q., Li, H., Wang, Z., & Law, R. (2014). The influence of hotel price on perceived service quality and value in e-tourism. Journal of Hospitality & Tourism Research, 38(1), 23–39. https://doi.org/10.1177/1096348012442540

Yerasani, S., Appam, D., Sarma, M., & Tiwari, M. K. (2019). Estimation and maximization of user influence in social networks. International Journal of Information Management, 47, 44–51. https://doi.org/10.1016/j.ijinfomgt.2018.12.016

Zhang, H., Zhao, L., & Gupta, S. (2018). The role of online product recommendations on customer decision making and loyalty in social shopping communities. International Journal of Information Management, 38(1), 150–166. https://doi.org/10.1016/J.IJINFOMGT.2017.07.006

Zielke, S. (2010). How price image dimensions influence shopping intentions for different store formats. European Journal of Marketing, 44(6), 748–770. https://doi.org/10.1108/03090561011032702

Downloads

Published

2022-03-31

How to Cite

Khalikussabir , K., Waris, A., & Wahono, B. (2022). Perceived price, eTrust, eSatisfaction, and online repurchase intention: A study of young online consumer behavior. JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 19(1), 77–96. https://doi.org/10.31106/jema.v19i1.11218