Presentation Transcript

1. ISEM 3120ISEM 3140 Seminar in ISEM2013-2014 Semester 1 Research paper presentation: C14 An empirical analysis of the antecedents of electronic commerce service continuance Group 4 Members: ChauSiu Tung, Isabella (12021962) Leung KaShing, Wilson (12020508) Ho Yin Ha, Kate (12022179) YiuTsz Wing, Joanne (12021776)
2. Agenda

3. Introduction

   1.1 Keywords’ Definitions 1.2 Research Paper’s Concept 1.3 Research Objective
4. IS use: The Internet Redefine the rules of doing business by eliminating transaction inefficiencies, reducing costs, & lowering barriers to entry Ensure their survival in the Internet economy

   1.1 Keywords’ Definitions

   Continuance: Consumers’ continuance intention Determined by satisfactionwith initial service use perceived usefulness of service use interaction between perceived usefulness & loyalty incentives
5. Customer satisfaction The extent to which consumers perceive their initial expectations of a service to be confirmed / disconfirmed during actual use

   1.1 Keywords’ Definitions

   Customer relationship management (CRM): New customer-centric business model Reorients firm operations around customer needs as opposed to products, resources / processes Improve customer satisfaction, loyalty, and retention
6. Expectation–confirmation theory (ECT) posits that satisfaction with a product or service is the primary motivation for its continuance

   1.1 Keywords’ Definitions

   Online Brokerage (OLB) A field survey of online brokerage (OLB) users. e.g., Charles Schwab, E-Trade is a B2C e-commerce service Allows individual investors buy / sell securities common stocks & options over the Internet at commissions substantially lower than that of full service brokerages e.g., Merrill Lynch.
7. Technology acceptance model (TAM) Application of attitude theories to IS use contexts, presents usefulness of an IS Perceived by potential users, as an important determinant of their intentions regarding IS use Affect consumers’ decision to continue using e-commerce services 3 key factors: I) Satisfaction ii) Perceived usefulness iii) Loyalty incentives

   1.1 Keywords’ Definitions

8. 1.2 Research Paper’s Concept

   This paper examines the key motivations underlying consumers’ intention to continue using e-commerce services & associations between these variables

9. 1.3 Research Objective

10. 1.3 Research Objective

11. 1.3 Research Objective

12. 1.3 Research Objective

13. 1.3 Research Objective

14. Research Method 2.1 Model and Hypothesis 2.2 Questionnaire 2.3 Research Methodology & Data Collection 2.4 Data Analysis and Results
15. 2.1 Model and Hypothesis Research Model
16. 2.1 Model and Hypothesis 3 key factors are hypothesized as influencing consumers’ decision to continue using e-commerce services Satisfaction Perceived Usefulness Loyalty Incentives
17. 2.1 Model and Hypothesis Hypothesis 1 A consumer’s satisfaction positively affects a consumer’s continuance intention. Hypothesis 2 A consumer’s perceived usefulness positively affects a consumer’s continuance intention.
18. 2.1 Model and Hypothesis Hypothesis 3 A consumer’s loyalty incentive positively affects a consumer’s continuance intention. Hypothesis 4 A consumer’s confirmation positively affects a consumer’s perceived usefulness.
19. 2.1 Model and Hypothesis Hypothesis 5 A consumer’s confirmation positively affects a consumer’s satisfaction.
20. 2.3 Research Methodology and Data Collection
21. 2.3 Research Methodology and Data Collection Research participants - 73% from Yahoo boards ; - 24% from Silicon Investor ; - 4% from Motley Fool and Raging Bull sites
22. 2.3 Research Methodology and Data Collection
23. 2.3 Research Methodology and Data Collection Five constructs
24. 2.3 Research Methodology and Data Collection Measured using…. - multiple item - fully anchored - seven-point - Likert scales ranging from strongly disagree to strongly agree
25. 2.3 Research Methodology and Data Collection
26. 2.4 Data Analysis and Results
27. 2.4 Data Analysis and Results Content Validity Using confirmatory factor analysis CFA Construct validity for each scale was assessed by examining the standardized CFA factor loadings of its hypothesized items Reliability All constructs have a minimum α value of 0.6, above the suggested minimum value of 0.4
28. 2.4 Data Analysis and Results
29. 2.4 Data Analysis and Results Continuance Intention
30. 2.4 Data Analysis and Results Satisfaction
31. 2.4 Data Analysis and Results Perceived Usefulness
32. 2.4 Data Analysis and Results Loyalty Incentives
33. 2.4 Data Analysis and Results Confirmation
34. 2.4 Data Analysis and Results Path Significance 0.757a Hypothesis 1 Hypothesis 2 0.436a
35. 2.4 Data Analysis and Results Path Significance Hypothesis 3 0.118ns
36. 2.4 Data Analysis and Results Path Significance Hypothesis 4 0.490a
37. 2.4 Data Analysis and Results Path Significance 0.657a Hypothesis 5
38. Findings 3.1 Continuance Intention 3.2 Associations between antecedent constructs
39. Findings Goal: antecedentsandinterrelationships
40. 3.1 Continuance Intention Strong predictors
41. 3.1 Continuance Intention3.1.1 Satisfaction  Minimizing Customer Churn (Discontinuance) &↑Loyalty Base Churn effect: i)↓Customer base and revenues ii) -ve WOM is more persuasive iii) Substantial cost to get back customers Customer-aware  customer-centered   KEY METRICS IMPORTANT PREDICTOR
42. 3.1 Continuance Intention3.1.2 Perceived Usefulness Secondary determinant Useful continue subscribe Problems Customers  recognize all benefits ∵limited prior experience / fear Solutions  “educate” potential benefit & teach how to realize But…compare with satisfaction… focus satisfaction first  Build sticky loyal customers base
43. 3.1 Continuance Intention3.1.3 Loyalty Incentives  Customer retention strategies  Rely improving it Consumers find service useful  Mix of consumer education & loyalty programs
44. 3.2 Associations between antecedent constructs
45. 3.2 Associations between antecedent constructs i) Satisfaction toward service ii) Perceptions of service usefulness
46. Solutions Segmentation strategy Service needs/capabilities Design separate marketing programs 3.2 Associations between antecedent constructs Method Influence decision process = Rational decision process before affect and intention EXPECTATION MGT Difficulties Understand optimal level is difficult High  Disconfirmation Low  ↓Motivation to continue Large variety of expectation Build appropriate level of expectations and able to meet
47. Confirmation Dissociation 3.2 Associations between antecedent constructs
48. 3.2 Associations between antecedent constructs Satisfaction has a cost i) Resolve dissatisfaction: Additional service/manpower cost ii) Cost in retaining a dissatisfied consumer iii) No assurance will return although dissatisfaction resolved
49. Conclusion 4.1 Limitation 4.2 Further Discussion
50. 4.1 Limitation Test for biases Novelty effect Results: 99% comfortable with online surveys  ∴ bias b) Non-response bias - investors visiting message boards may differ from general population Compare variable: Demographic (age and income level) & contextual Results: Age  Weakly significant Income level & portfolio size  Non-significant ∴　Target population fairly represented, response not substantively different
51. 4.1 Limitation c) Bias on continuance intentions items view OLB discontinuance as a viable option Separate discontinuance-aware &unware respondents Rerun separately Results: overall pattern of path significance and relative influence of determinants were unchanged ∴Bias in perceptions of continuance behaviors would not affect response
52. 4.2 Further Discussion Few theoretical model explain causative relationships Constraints: variables, relationships, assumptions…  biased interpretation Diverse theoretical perspectives: validate model/propose a more comprehensive explanation Add’l determinants not examined