Procedia Computer Science 72 ( 2015 ) 382 389
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- 1. Introduction
- 2. Background Information
- 3. Research Methodology
- 4. Findings
- Hypothesis Variables Technique Findings Results
- 5.Discussion
- 5. Conclusion
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Procedia Computer Science 72 ( 2015 ) 382 – 389 1877-0509 © 2015 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/ ). Peer-review under responsibility of organizing committee of Information Systems International Conference (ISICO2015) doi: 10.1016/j.procs.2015.12.153
Available online at www.sciencedirect.com The Third Information Systems International Conference The Impact of Website Quality on Online Purchase Intention of Organic Food in Malaysia: A WebQual Model Approach Jasur Hasanov, Haliyana Khalid*
This paper presents valuable insight into consumers’ online purchase intentions regarding organic foods. Specifically, it examines the influence of website quality on consumers’ intention to purchase organic food online based on the Malaysian perspective. The study employed quantitative method; where 304 respondents participated in a survey. The results indicate that website quality has indirect impact on online purchase intentions of health foods in Malaysia through the full mediation of customer satisfaction. On the other hand, demographic factors had no significant effect on online purchase intention.
© 2015 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the scientific committee of The Third Information Systems International Conference (ISICO 2015)
uality, Customer’s purchase intention, Customer satisfaction, Organic food 1. Introduction Concerns about conventional agriculture practices, food safety, human health, animal welfare, and the environment have been increasing lately all around the world. As a result, the demand for organic food products has been growing simultaneously. Increasing demand for organically produced products has been observed in Malaysia too. Imported organic food products in Malaysia capture more than 60% of all organically grown products sold in the country [1]. This is because people in the country have gained better financial positions and are more knowledgeable about health and wellness issues, making them more selective in food choices [2]. Recent research indicates that Malaysian consumers’ interest in the consumption of organically grown food products has been growing over the past few years [3]. However, the Malaysian Agricultural
* Corresponding author. Tel.: +603-86560350; fax: +603-89421584. E-mail address : haliyana@putrabs.edu.my © 2015 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/ ). Peer-review under responsibility of organizing committee of Information Systems International Conference (ISICO2015) 383 Jasur Hasanov and Haliyana Khalid / Procedia Computer Science 72 ( 2015 ) 382 – 389 Research and Development Institute, which focuses on the modernization of the agricultural sector in Malaysia, states that the organic food industry within the country is still small. One of their efforts to overcome this is to increase the online presence of organic products in Malaysia. To date, there are hardly any efforts by retailers to sell organic food online in the country despite the exceptional exposure of e- commerce in Malaysia. Online shopping websites are significantly important for businesses, retailers, and consumers with their rapidly growing innovative features. For that reason, organizations must develop high quality websites that provide a better online experience to attract and retain their customers in the e-retail marketplace [6].Therefore, studies state that measuring the quality of their websites, based on customers’ perception of website quality and requirements of the industrial competition in which the organization is operating, is crucial for organizations. In this paper, we present findings from our study which employed the WebQual theory to assess the quality of organic food shopping websites in Malaysia based on user perceptions. The WebQual model is a tool to measure the usability, information quality, and service interaction quality of websites. It is often used to measure the quality of e-commerce websites (WebQual, 2015). The resources used to develop WEBQUAL 4.0 are related to Information Systems (IS) assessments, which means the model has a strong foundation based on various IS assessments [7].The WebQual model, developed by [8] argues that website quality depends on three main dimensions: usability, information quality, and service interaction quality. The WebQual model has been applied to some popular websites in England such as Amazon, Bertelsmann Online (BOL), and Internet Bookshop (IBS) to examine the quality of these websites from customers’ perceptions [9]. 2. Background Information 2.1 Website Quality According to one study [10], the perception of customers about website quality is based on features in a website that meet customers’ needs and impress the total excellence of that website. The authors of the study also mentioned that the multiple dimensions of website quality can be categorized as security, enjoyment, information quality, ease of use, and service quality. At the same time, website design is an important determinant of website features, and is critical in achieving the quality of service offered to customers through the website. Crucial features in a successful website design are aesthetic appearance, navigation, and an organized and well-managed content display [11]. Attractive and interesting effects in e-commerce websites motivate consumers to engage in online shopping activities [12]. According to a group of researchers [13], website features have an important influence on online purchase intention. Plus, an informative website enables customers to compare and evaluate product alternatives, thereby increasing customer satisfaction and contributing to online purchase intention [14]. The quality of information offered by a brand on online shopping websites is also an important factor. One particular study reveals that information quality has the highest influence on customer satisfaction among all website quality dimensions [15]. In this research, the dimensions of the WebQual model (usability, information quality, and service interaction quality) were used as the main determinants of the independent variable, website quality.
Customer satisfaction is a common terminology used in the business environment. However, customer satisfaction is more often replaced by the term “user satisfaction” in the context of Information Systems (IS). IS professionals use “user satisfaction” to examine the performance of a particular IS application [8]. 384 Jasur Hasanov and Haliyana Khalid / Procedia Computer Science 72 ( 2015 ) 382 – 389 According to recent research, customer satisfaction from an online shopping website involves the reactions or feelings of customers during their experience on the particular shopping website. Another study mentions that customer satisfaction is the level of the customers’ expectations met by the product or services when customers experience these [17, 18]. Several studies have been done to examine the influence of website quality on customer satisfaction. A group of researchers [19] state that website quality has an important influence on customer satisfaction. Another study mentions that website quality has a significant influence on the level of customer satisfaction whereby as website quality increases, customers tend to use the website more frequently [20]. One study, which investigated the influence of website quality on customer satisfaction and purchase intentions [21], found that website quality has a direct effect on customer satisfaction and that customer satisfaction, in turn, influences customers’ intention to purchase. It has also been shown by research that consumers’ purchase intention behaviors can be driven by website quality or consumers’ past online purchase experience [22].Consequently, customer satisfaction leads to online purchase intention of consumers, and as a result will positively influence the return rate.
Demographic characteristics that may influence online purchase intention include age, gender, education, income, occupation, religion, race, nationality, family size, family life cycle, and social class. Demography has been used in marketing as a useful tool for customer segmentation, which is significant for retailers in terms of positioning and targeting. Lina et. al [23] state that the impact of demographic characteristics on online shopping is among the most examined factors by researchers. Factors like gender, age, income, and occupation are the initial influencing factors on online shopping behavior of consumers. Mona et al. [10] state that online purchase behaviors are different for female and male consumers due to privacy, virtual experience, security, and credibility issues. Although shopping is considered a woman’s activity because women usually deal with household shopping, research indicates that male consumers shop more and spend more money online compared to females [24]. Another research found that organic food is mostly included in young female customers’ diets [25]. One study that examined consumers’ attitudes towards e-ticketing in Malaysia found that age is an influencing factor on consumers’ online shopping behavior. According to the study, the younger generation is more interested in online shopping as their knowledge of technology is higher than that of older generations [26, 27]. Similarly, [24] found that education level and income are factors that impact online shopping behavior of consumers. Another research conducted in Brazil states that, in Brazil and in other countries, people who regularly use the Internet usually have higher levels of income and education [9]. Justin & Jyoti [25] claim that income is an influencing factor because consumers with higher income buy online products more often. Their study also mentions that a higher education level positively influences purchasing of organic foods as well. In summary, the existing research literature strongly suggests that the demographic characteristics of consumers play a significant role in their online purchase intentions.
Customers’ purchase intention is considered a predictor of their actual behavior [21]. As such, it is important for businesses to understand their customers’ purchase intentions. Shaheen Mansori et al. [13] state that consumers’ plans to purchase products and services, which is expressed by a cognitive state, is defined as purchase intention [28]. According to [29] customers’ perceptions of website quality and satisfaction have a positive impact on their purchasing intentions. In addition, customer satisfaction has been found to mediate the relationship between firm’s perceived quality and customer purchase intentions
385 Jasur Hasanov and Haliyana Khalid / Procedia Computer Science 72 ( 2015 ) 382 – 389 [30]. According to [21] customers’ online purchase intentions are positively influenced by website quality through the mediation of customer satisfaction.
Based on the WebQual 4.0 model and other studies described above, a research model was proposed with three determinants of consumers’ online purchase intentions of organic foods. These determinants are: Website Quality (WQ), Customer Satisfaction (CS), and Demographic Characteristics. Website Quality and Demographic Characteristics are the independent variables, while Customer Satisfaction is the mediating variable of this research. Online Purchase Intention (OPI) of organic foods is the dependent variable of the study. The dependent variable is the variable of primary interest in this research - online purchase intention (OPI) of online shopping of organic foods. The variables that have either negative or positive impacts on the dependent variable are the independent variables of this research. So, if the independent variable increases by one unit then the dependent variable will either increase or decrease. For example, when the level of website quality increases then consumers’ online purchase intention of organic foods will also increase. In summary, the independent variable influences the dependent variable and this measures the results of the research based on the hypotheses. The theoretical framework proposes that website quality and demographic characteristics are independent variables influencing consumers’ online purchase intentions of organic foods. The relationship between website quality and online purchase intention is mediated by customer satisfaction in this proposed model. In this study, the hypotheses tested are: H1a: There is a relationship between website quality and online purchase intention. H1b: There is a relationship between customer satisfaction and online purchase intention. H1c: There is a relationship between website quality and customer satisfaction. H2a: Website quality positively influences online purchase intention. H2b. Customer satisfaction positively influences online purchase intention. H2c. Website quality positively influences customer satisfaction. H2d: Age has an impact on consumers’ online purchase intention of organic foods. H2e: Marital status ha s an impact on consumers’ online purchase intention of organic foods. H2f: Employment has an impact on consumers’ online purchase intention of organic foods. H2g: Gender has an impact on consumers’ online purchase intention of organic foods. H2h: Income has an impact on consumers’ online purchase intention of organic foods. H2i: Education level has an impact on consumers’ online purchase intention of organic foods. H3: Customer satisfaction mediates the relationship between website quality and online purchase intention.
A descriptive research methodology was employed to test the research hypotheses using surveys as the research instrument. A total of 304 respondents participated in the survey. The collected data was analysed using the Statistical Package for the Social Sciences (SPSS) version 21.In order to achieve the research objectives and test the hypotheses, different types of analyses were conducted including reliability and validity analysis, correlation analysis, regression analysis, and bootstrapping analysis. While the first three are commonly used in descriptive analyses, bootstrapping analysis was particularly 386 Jasur Hasanov and Haliyana Khalid / Procedia Computer Science 72 ( 2015 ) 382 – 389 used in this study to
test the mediating effect of customer satisfaction, the mediating variable, on the relationship between the independent and dependent variables. 4. Findings 4.1 Demographic analysis The number of female respondents (66.1%) is approximately twice the number of male respondents (97.7%) are below 40 years old, which can be considered relatively young. As expected, the sample is a highly educated group as 98.1% of respondents have undergraduate or postgraduate degrees. Another interesting fact is that a majority of the respondents (95.7%) earn less than RM5000 as monthly income, which is below the Malaysian average household income of RM5, 900 (approximately USD1650). Also, the majority of respondents are single (86.8%), while only 12.8% of them are married and only one respondent (0.3%) is either divorced or widowed. In terms of employment, most of the respondents (86.5%) are students enrolling in different levels of studies while 8.6% of respondents are working in organizations and 8 respondents (2.6%) are owners of their own businesses. Based on the findings, local shopping websites are preferred for online shopping by 68.8% of respondents compared to international shopping websites, which are preferred over local websites by only 26.3% of respondents. In addition, 4.9% of respondents make their online purchases from both local and international websites. The majority of the respondents (65.1%) state they make online purchases once or twice a year while 29.9% of respondents state once or twice a month as their answer. The rest of the respondents (n=15) make online purchases at least once a week. Most of the respondents spend less than RM500 monthly on online shopping, while only 5.6% of respondents make online purchases that amount to more than RM500 per month. The findings of this study also reveal some important organic food purchasing statistics of respondents. The results show that only 2.3% of respondents buy organic food from online shopping websites while the remaining 97.7% of respondents purchase organic food products from supermarkets, convenience stores, or other sources. Most respondents (40.5%) purchase organic foods at least once or twice a month and about half of them (49.3%) spend between RM31 and RM100 per month on organic food.
The first three hypotheses were tested through correlation analysis. The analysis shows that CS has a relationship with OPI and WQ has a relationship with CS. However, while H1b and H1c are supported, H1a is not supported:
H1a, which proposed that there is a relationship between website quality and online purchase intention, is not supported (r=0.045, p>0.05).
H1b, which proposed that there is a relationship between customer satisfaction and online purchase intention, is supported (r=0.237, p<0.05).
H1c, which proposed that there is a relationship between website quality and customer satisfaction, is supported (r=0.339, p<0.05).
To overcome the limitation of correlation analysis, linear regression analysis was employed to test hypotheses H2a to H2i. In the first regression model, the analysis using eight independent variables has a coefficient of multiple determinations, or R 2 , of 0.070, which means that 7% of the variance of OPI could be explained by a combination of the eight variables. The main objective of this study is to determine the impact of website quality on online purchase intention of organic food, and this model’s R 2 value (0.070) shows that only 7% of the variance in online purchase intention (OPI) is influenced by the significant
387 Jasur Hasanov and Haliyana Khalid / Procedia Computer Science 72 ( 2015 ) 382 – 389 independent variables of this study. The remaining 93% of consumers’ online purchase intention is driven by unknown factors or variables not included in this study. Apart from that, the t-test results declare that customer satisfaction (CS) has a significance level of 0.000. Therefore, CS can explain online purchase intention (OPI). On the other hand, the rest of the independent variables have significance levels that are higher than 0.05.
Thus, they do not influence OPI. Finally, bootstrapping analysis was used to test the last hypothesis of this research, which proposes the existence of a mediation between website quality and online purchase intention through customer satisfaction. In this research, thirteen hypotheses were proposed and five of them are supported while eight are not supported based on the analytical findings. A summary of the results of the study is shown in Table 1 below:
Variables Technique Findings Results 1 H1a WQ - OPI Correlation (r=0.045, p>0.05)
Not supported 2 H1b CS - OPI Correlation (r=0.237, p<0.05)
Supported 3 H1c WQ - CS Correlation (r=0.339, p<0.05)
Supported 4 H2a WQ - OPI Regression (β = - 0.080, p > 0.05) Not supported 5 H2b CS - OPI Regression (β = 0.331, p < 0.05)
Supported 6 H2c WQ - CS Regression (β = 0.331, p < 0.05)
Supported 7 H2d Age - OPI Regression (β = 0.119, p > 0.05)
Not supported 8 H2e Marital status - OPI Regression (β = - 0.236, p > 0.05) Not supported 9 H2f Employment - OPI Regression (β = 0.050, p > 0.05)
Not supported 10
H2g Gender - OPI Regression (β = - 0.046, p > 0.05) Not supported 11 H2h
Income - OPI Regression (β = 0.143, p > 0.05)
Not supported 12
H2i Education level - OPI Regression (β = 0.069, p > 0.05) Not supported 13 H3
WQ – CS – OPI (mediation) Bootstrapping (β’ab = 0.1790, p < 0.05) Supported 5.Discussion This research developed a model to determine the influence of website quality on customer satisfaction and online purchase intention of organic foods in Malaysia using the WebQual 4.0 instrument. The analytical outcomes prove that website quality has a positive impact on customer satisfaction. This finding is supported by previous studies by [19] and [20], who found that website quality is an important predictor of customer satisfaction. However, there is no significant correlation between website quality and online purchase intention of organic foods in Malaysia although previous studies found that website quality has an impact on online purchase intention [16, 13]. The results of the mediation analysis indicate that customer satisfaction fully mediates the relationship between website quality and online purchase intention. This study also reveals that none of the demographic factors used in this research is a predictor of online purchase intention of organic food in Malaysia. As website quality has an indirect effect on the online purchase intention of organic food products, practitioners should also align the quality of their online stores with customers’ expectations. To increase
388 Jasur Hasanov and Haliyana Khalid / Procedia Computer Science 72 ( 2015 ) 382 – 389 the level of online purchase intention, e-retailers of organic food should possess relevant marketing strategies which include creating awareness on the benefit of organic food to the public, establishing affiliates network and conducting constant promotions to their target audience. Despite the fact that this study has able to achieve its research objectives, there were some research limitations that need to be addressed. Firstly, most of the respondents were students. Secondly, the sample population was from a university. Based on the sample population and the demographic disparity, respondents were not equally represented. Therefore, the generalizability of the findings to all consumers in Malaysia is limited. Future research should extend the distribution of questionnaires to areas outside the Klang Valley area as well as to other states in Malaysia. Apart from this, it should also be expanded to other age groups.
Although the study cannot represent all Malaysian consumers, it has provide a valuable insights that can be further explored by other researchers and practitioners that would like to improve user engagement and consumer purchasing intention in organic food website. However, it is important to understand that website quality is not the only determining factors that could increase consumer purchasing intention. Other qualities such as good customer service, efficient product distribution and logistics and also positive reviews from customers also play an important role.
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