Social network impact on consumer purchase intention online

In all, 243 questionnaires were completed and gathered, but 5 questionnaires from respondents were discarded as they were non members of Facebook community. In add-on, 35 study consequences were considered invalid after they were identified by techniques such as the usage of the contrary inquiries, so they were removed.

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Therefore, 203 questionnaires were retained for farther analysis.

Demographic analysis of respondents

Among the 203 valid respondents, 109 ( 53.7 % ) of them are male and 94 ( 46.3 % ) are female that with the bulk age of the respondents ranged from 15 to 35 old ages old, and bulk of the gathered samples was submitted from respondents at their 15 to 25 old ages old ( 76.8 % ) and 26 to 35 old ages old ( 21.7 % ) , which indicates that they belongs to the chief group of Facebook users, and the consequence indicated that 172 ( 84.7 % ) of the respondents mentioned that they have been members for more than half of a twelvemonth, which means they are familiar with most maps of Facebook. As for their experience in utilizing the Internet, 199 respondents ( 98 % ) have been surfing the Internet for more than three old ages, and about half of the full respondents ( 48.8 % ) claimed that have been experienced in on-line shopping ( including on-line auctions ) for more than 10 times. As for the instruction background of respondentsi??i?? , 55 ( 27.1 % ) of them were at the postgraduate degree or above, 144 ( 70.9 % ) with college grades. In footings of monthly income, the bulk of respondents ( 60.1 % ) claimed their monthly is around 10,000NT $ or less and 30 respondents ( 14.8 % ) mentioned they are presently paid for 10,000NT $ to 20,000NT $ per month. The measuring scales including the average value and standard divergence ( SD ) for the gathered study consequences are listed in Table 4.

5.1 Test for unidimensionality of all blocks

The hypotheses were tested by proving the proposed relationships utilizing Partial Least Squares ( PLS ) way mold ( Chin, 1998 ) to prove the proposed measuring theoretical account and structural theoretical account, since the advantage of using PLS is that it requires less limitations on measuring graduated tables, sample size and residuary distribution ( Liljander, Polsa, & A ; van Riel, 2009 ) , and PLS requires fewer observations, compared to the other method Maximum Likelihood ( ML ) SEM techniques such as LISREL ( Joreskog & A ; Sorbom, 1989 ) . PLS was foremost introduced by Wold ( 1975 ) and it has been deriving involvement and popularity among selling, direction, and psychological science research workers. There are many different plans that developed for PLS way patterning but most of them need users to buy license keys. The shareware SmartPLS 2.0 M3 ( Ringle et al. , 2005 ) is acquiring popular as it can be used to at the same time gauge all gathered sample every bit good as relationships put frontward in the conceptual theoretical account, and it is able to assit research workers to set the theoretical account to maximise the sum of explained discrepancy in the dependent variables ( Streukens & A ; Zaharia, 2005 ) . However, when research workers use PLS as the statistic method, it is besides indispensable to measure the truth of the measuring theoretical account by analyzing single point dependability, concept dependability, convergent and discriminant cogency of the variables in the theoretical account ( Tenenhaus, Vinzi, Chatelin, & A ; Lauro, 2005 ) . Furthermore, Turkyilmaz, and Ozkan ( 2007 ) suggested that i??i??Unidimensionality cheque is necessary when the manifest variables are connected to their latent variables in a brooding wayi??i?? , and the unidimensionality of the block can be examined by working three tools that called i??i??principal constituent analysisi??i?? , i??i??Cronbachi??i??s alphai??i?? , and i??i??composite reliabilityi??i?? severally. A block is considered as one-dimensional when Cronbachi??i??s i?? and composite dependability are both reach to 0.7 ( Tenenhaus, Vinzi, Chatelin, & A ; Lauro, 2005 ) . In Table 5, the statistics for look intoing the unidimensionality of each block are lsited. After carry oning the chief constituent analysis by utilizing package called SPSS, the consequence showed that first characteristic root of a square matrix is greater than 1 and 2nd characteristic root of a square matrix is less than 1 for each block. For old ages Cronbach ‘s coefficient alpha is the most commonly step used by bookmans in the universe to analyze internal consistence ( Ahire, Golhar, & A ; Waller, 1996 ; Churchill Jr, 1979 ; Gerbing & A ; Anderson, 1988 ) . Dependability of the measuring graduated tables can be assessed by Cronbach ‘s coefficient alpha that dependabilities of.50 to.60 are sufficient in the early stages of a preliminary research, and values of 0.7 and above for coefficient alpha is considered as holding a strong dependability for the graduated table exaimned ( Nunnally, 1978 ) . In this survey, the Cronbach ‘s coefficient alpha is from 0.759 to 0.876, which all exceed the threshold and can bespeak strong dependability for the graduated table, and since it is larger than 0.7, the block is considered unidimentional. Composite dependability is besides considered another index for proving the unidimentionality of the concept. In this survey, composite dependability value is besides supra 0.70 for each concept. Therefore, all three trials proved the unidimensionality of the concept.

5.2 Test of the measuring theoretical account ( outer theoretical account )

To prove the outer theoretical account, it should be included outer weight, burdens, and the mean discrepancy extracted ( AVE ) measures that are shown in Table 6. The outer burdens, which are used to measure single point dependability, and they are the burdens of the brooding manifest variables with their several latent variable. Item dependability was judged on strong outer burdens, intending no less than 0.60 and ideally greater than 0.70 ( Chin, 1998 ) . In this survey, except for one point ( ISI2 ) , all outer burdens value were higher than 0.7. The lone exclusion point, ISI2, was still retained in the subsequent analyses, chiefly because it is indispensable to retain as many points as we can from the original concept to guarantee the unity of the trial ( Barclay et al.1995 ; Chang & A ; Pan, 2009 ) and the burdens of ISI2 ( 0.6926 ) was highly close to the threshold 0.70. Therefore, the point ISI2 was remained.

The mean discrepancy extracted ( AVE ) created by Fornell and Larcker ( 1981 ) provides such a step of convergent cogency, and it should be at least greater than 0.5, harmonizing to their recommendation ( Fornell & A ; Larcker, 1981 ) . Table 6 shows that in this survey AVEs scope from 0.58 to 0.67, which exceeds threshold value of 0.5 suggested by them. When a discrepancy extracted value is larger than 0.5, it indicates that the cogency of concept and the single variables is high ( Bagozzi, 1991 ) . Discriminant cogency indicates that one concept can separate it from other concepts, and it can state which is unrelated to the concept ( Jun & A ; Cai, 2010 ) . To evalaute the discriminant cogency, the square root of the AVE step on each concept must transcend the estimated correlativities shared between the concept and other concepts in the theoretical account ( Fornell & A ; Larcker, 1981 ) . Table 7 showed that diagonal elements are the square root of mean discrepancy extracted ( AVE ) and they can be used to measure discriminant cogency. These values should transcend all inter-constructed correlativities when the discriminant cogency is accepted. The matrix of burdens and cross-loading for all indexs is shown in Table 8, which presents that all brooding points have high burdens ( ranged from 0.693 to 0.868 ) on their expected concepts. Meanwhile, it is obvious that every point burdens is higher on its theoretical concept than on other concepts. The tabular array besides shows that every cross-loading difference is more than the threshold of 0.1 ( Chang & A ; Pan, 2009 ; Gefen & A ; Straub, 2005 ) . Overall, these provide a solid grounds to guarantee convergent cogency and discriminant cogency.

5.3Test of the structural theoretical account ( interior theoretical account )

Partial least squares ( PLS ) , which has been view as a powerful second-generation multivariate analysis tool that can measure theoretical hypotheses every bit good as indicating out the being of relationships for future proving work ( Chin, Marcolin, & A ; Newsted, 2003 ) is adopted in this survey to prove the structural theoretical account. In other words, PLS isan utile tool to analyze latent structural theoretical accounts that are indirectly observed by multiple indexs for theory development and trial ( Wold, 1981 ; Anderson & A ; Gerbing, 1988 ) . The interior theoretical account consequences include path coefficients, t-values/p-values, and the discrepancies explained ( R-square values ) that are presented in Figure 4 and Table 9. The t-values attach toing the single coefficients are calculated by utilizing a bootstrap process dwelling of 1000 tallies simulation ( White, Varadarajan, & A ; Dacin, 2003 ) . The empirical consequences ( shown in Figure 4 and Table 9 ) confirm that consumer trust in offline shops does hold a important direct consequence on attitude toward purchase offline ( i?? ] =0.260, p=0.0061 ) and attitude toward fall ining Facebook Fans page ( i?? ] =0.391, p=0.0003 ) . However, it significantly affects neither information hunt purpose online ( i?? ] =0.096, p=0.3229 ) nor purchase purpose online ( i?? ] =0.13, p=0.1249 ) . Attitude toward fall ining Facebook Fans page has a direct influence on attitude toward buying offline ( i?? ] =0.459, p=0.0000 ) and information hunt purpose online ( i?? ] =0.355, p=0.0041 ) , but it does non significantly act upon purchase purpose online ( i?? ] =0.154, p=0.1616 ) .

Figure 4. Consequences of PLS algorithm

In add-on, attitude toward buying offline significantly influences information hunt purpose online ( i?? ] =0.387, p=0.0015 ) but it does non significantly act upon purchase purpose online ( i?? ] =0.168, p=0.1383 ) . Finally, information hunt purpose online has a direct influence on attitude toward buying offline ( i?? ] =0.414, p=0.0007 ) . Overall, H1, H2, H3, H5, H6 and H8 proposed in this survey were supported by the empirical consequences, though the other 4 hypotheses ( H4, H7, H9 and H10 ) were non significantly supported.

Structural anticipation is frequently assessed by sing usual explained discrepancy ( R2 value ) . A high value of R2 can stand for a good anticipation power. The explained discrepancy of purchase purpose online is 0.512 in this survey. That is, the research theoretical account can explicate 51.2 % of the discrepancy in the dependant variable. And this is an acceptable discrepancy for societal scientific discipline research. Chin ( 1998 ) suggested that the consequence size of each independent concept can be exploited to gauge the prognostic power of each independent concept, and Cohen ( 1988 ) pointed out that the mathematical expression for ciphering the consequence size degree Fahrenheit 2 is [ ( R2full- R2excluded ) / ( 1- R2full ) ] , and the operational definitions of little, medium and big consequence sizes are 0.10, 0.25 and 0.40 ( Cohen, 1992 ) .

Chapter 6

DISCUSSION AND MANAGERIAL IMPLICATION

The chief intent of this paper was to analyze if societal web sites could hold a positive impact on consumersi??i?? purchase purpose online and develop a research theoretical account for farther research. The consequence of this survey proved that consumer trust in an offline shop was a critical forecaster of consumersi??i?? attitude toward fall ining Facebook Fans pages and consumersi??i?? attitude toward via offline shops. This is a momentous determination for companies and retailing shops that intend to set up a Facebook Fans page as their new online platform for functioning current clients online every bit good as making more possible 1s online. Consumer trust has been considered as the footing of originating a reciprocally benefited relationship with clients in concern universe, and it has been one of the extreme factors for increasing gross revenues, gross and client keeping rate. As the hypothesis predicted, consumersi??i?? trust in an offline shop has a positive relationship with their attitude toward buying via offline shops. This consequence confirms that consumers frequently sense safer when they purchase through the shops they have trusted, and it besides indicates that when shops build up a dependable and trusty image in customersi??i?? head, iti??i??s expected to stay a stable client keeping rate every bit good as maintaining a turning gross revenues volume. Most consumers are used to confer with with clerks for a basic debut to the merchandises that they intend to buy in the shop. When they notice that the clerk is competent and patiently supplying clear and complete merchandise information with suggestions for their mention, it is more likely for clients to accrue their willingness to put an order right off or subsequently in the same shop. For luxury goods ( jewellery, consumer electronic merchandises or place contraptions ) , it normally takes excess clip for clients to do a determination and they frequently need advices from the clerk to do a comparing among different trade names, or the same trade name with similar theoretical accounts. Meanwhile, they may besides be concerned about guarantee and fix service that can guarantee their rights. As expected, the degree of consumersi??i?? trust will positively impact their attitude toward fall ining Facebook Fans page of the retailing shop. Consumer trust remains as a chief key that positively influence customersi??i?? attitude toward fall ining practical communities that companies should non pretermit. More and more companies are following societal networking sites to assist them listen to consumersi??i?? voice and penetrations.

Findingss sing the attitude toward fall ining Facebook Fans page, it was proved to be significantly related to consumersi??i?? attitude toward buying online and information hunt purpose online. This new determination suggests that when consumers are interested in fall ining the Facebook Fans page of the retail merchant, it is much more likely for them to buy in the physical stores and besides hunt for merchandise information actively.

From this survey, it besides proved that consumers will hold the purpose to seek for more information online when they have a positive attitude toward buying in the physical shops. Consumers who have trusted the retail merchant and intend to buy wares in the physical shop, they are frequently interested in shoping the online shops and may buy related merchandises. Due to the limited infinite and shelves, most little and average size retailing shops have a restriction to show all goods. Most shop directors can merely expose a really little assortment of merchandises and they are normally among of best Sellerss. This is a really common phenomenon for bookshops and music stores, where they are located near concern territories or train Stationss that proprietors pay high rents but could merely afford a limited infinite. However, on a Web-based shop ( an online shop ) , it is possible to set 100s and 1000s of merchandise information online for clients to shop and purchase.

This research besides demonstrates that increasing purpose of seeking for information online consequences in an increasing purchase purpose online, and it besides supports old research conducted under the similar multi-channel context ( Lee & A ; Kim, 2008 ) . A anterior survey conducted in 15 U.S. metropolitan countries besides showed that purpose to utilize the Internet for information hunt is positively related to purpose to utilize the Internet for buying ( Shim, Eastlick, Lotz, & A ; Warrington, 2001 ) . Recently, another survey conducted in U.K. besides proved that on-line information hunt and rating positively affects on-line purchase purpose ( Vazquez & A ; Xingang, 2009 ) . This indicates that most consumers are used to roll uping inside informations on the merchandises they are looking for first, and they may desire to deduce information on characteristics, monetary value, and form from the web site of industries or retail merchants, particularly before they make a determination on luxury goods. Take consumer electronic merchandises as illustration, makers normally develop several theoretical accounts for different cleavage in pricing. Some theoretical accounts are designed for novices that require basic maps that they can run the machine in the simplest manner. However, for experient or advanced users who need more complete maps, they intend to pay excess for a deluxe or premium one. Industries frequently use a specifically organized method to distinguish their appellations by using different theoretical account Numberss. However, many consumers may acquire confused by eternal theoretical account Numberss. Take laptops for illustration, SONY VIAO ( 2010 ) defines E-series and F-series for place usage ( with a high-resolution LCD proctor ) and Z-series ( powerful cardinal processing unit embedded ) for concern use intent. For consumers, they need to shop the official web site of industries for geting characteristics and MSRP ( Manufacturer ‘s suggested retail monetary value ) before they can do a concluding determination. Therefore, retail merchants should seek to cut down the hunt cost for their possible clients who come to the shopping web site or online shops by supplying every bit much information as they can. Besides the merchandise name, theoretical account figure and on-line retailing monetary value, a hyper-link to the web page of official merchandise profile should be besides included for consumers to guarantee they doni??i??t make a error before seting it to the e-shopping cart.

However, the direct consequence of consumer trust in an offline retail merchant on their purchase purpose online was non supported in this survey. This may propose that consumer trust in the offline shop does non hold a direct impact on the consumeri??i??s purpose to buy but indirectly influences through hunt purposes for merchandise information online. This consequence is really similar to prior survey with the similar research model that conducted among undergraduates in the U.S. ( Kim & A ; Park, 2009 ) . Since the bulk of the respondents ( 76.8 % ) are immature pupils who are at their 16 to 25 old ages old, and the monthly income is about 10,000NTD or less. The possible account for this phenomenon can be due to most pupils under a limited budget for each buying program, and they intend to do the most equal determination. Before inside informations on merchandises could be gathered from the web site of the shops, they normally hesitate to put any order from the online shop, even though they may hold had a trust in the offline shop.

Deductions for practicians

The consequences of this survey have multiple practical deductions for directors who are running retailing shops. The concluding research theoretical account in this survey might be able to help the retailing industry to carry on on-line selling run with the aid of on-line societal networking platform. Besides the traditional gross revenues channel, many physical retailing shops have besides established online shopping sites but they have limited budget to make advertisement every bit good as addition the figure of website chinks. This theoretical account suggests that shop directors could get down from constructing up a Facebook Fans page to back up their online shops and increase its traffic flow, as the consequence indicates that consumers who join the Facebook Fans page will be more willing to buy offline ( physical shops ) and shoping the web site for deducing of more merchandise information. In other words, if the shop could carry their current clients to fall in the on-line Facebook Fans page, it could be more possible for them to be guided to the online shop and increase their purpose to buy from it. From the anterior survey that showed that clients who shop in multiple channels are exposed to the services the house provides, and they should be more satisfied with the house and develop a deeper relationship with the house ( Venkatesan, Kumar, & A ; Ravishanker, 2007 ) .

Customers frequently feel defeated when the clerks tell them some books are presently out of stock since the shop manage merely stocks few when they are non-best marketer. An on-line retailing channel can enable clients to order wares online that are unavailable in local shops and to roll up them locally. This might be able to assist the retailing shops to incorporate the physical gross revenues locations with practical 1s ( on-line shopping sites ) . However, consumeri??i??s trust is still the cardinal factor for pulling consumersi??i?? purpose to buy. Stores must maintain watching on service quality in offline shops to increase customersi??i?? trust, so they might besides accept the SNSs built by the shop and be redirected to online shops.

Chapter 7 CONCLUSION AND FUTURE WORK

This survey contributed to the undiscovered field of the consequence of Facebook Fans page on on-line information hunt purpose and customersi??i?? attitude toward Facebook Fans page. Adoption of a Facebook Fans page is positively related to customersi??i?? on-line information hunt purpose, but it will non straight affect their purpose to buy online. This indicates that when retailing shops follow a Facebook Fans page, it may non hike their gross revenues volume straight, since clients have to travel through an on-line searching and decision-making procedure foremost. The survey besides showed that Facebook Fans page is an adjunct tool that is capable of airting possible clients to their online shops for farther merchandise information retrieving. If the online shop is able to supply more complete information on wares, it is expectedly possible for consumers to set those goods into shopping cart and complete the dealing. Furthermore, Facebook Fans Page provides retail merchants a locale to rapidly air a message to a great many of people without acquiring blocked by an Internet service supplier ( ISP ) or holding their advertisement electronic mails get blocked by a spam filter. These all indicate that it could be an effectual Web 2.0 community tools for digital selling.

However, there are several factors, which limit this survey. To get down with, this survey merely reached portion of Facebook usersi??i?? attitude and thought. The questionnaire was designed for current members of Facebook and it was sent by Facebook messaging system to ask for them to make full in. The nexus was besides posted on the biggest electronic bulletin board established by the academic institute in Taiwan ( National Taiwan University ) , so the survey merely reached portion of Facebook users who are besides familiar with electronic bulletin board. Among them, most respondents claimed that they are presently college pupils. From the demographic study consequence, the survey failed to make a considerable figure of senior Facebook users who have been utilizing the site for more than 2 old ages. Aforementioned conditions showed that this survey chiefly reached immature pupils who are early adoptive parents and novices of Facebook Fans pages who are besides used to recover information from electronic bulletin board. Second, the focal point of this research dealt with on-line purchase purposes, non existent e-commerce determination behaviour. In this survey, respondents were asked to remember their memory and chose one of their favourite retailing shops, and they should reply the inquiries based on their anterior experience and memories they had in that shop. Ajzen ( 1985 ) indicated i??i??the grade to which people express their purposes to purchase from an online shop is a sensible forecaster of the existent purchase behaviori??i?? Therefore, before analyzing existent e-commerce acceptance, this potentially significant consequence could stay ill-defined ( Pavlou & A ; Chai, 2002 ) . Finally, the sample restrictions in footings of size ( around 200 ) , representativeness and regional consequence should be re-considered. However, by working statistical methods that are good suited for little samples ( e.g. PLS and the bootstrap method ) , research workers are still able to gauge complex theoretical accounts ( Guenzi & A ; Georges, 2010 ) . In this survey the sample had a big figure of 15-25 twelvemonth olds ( 76.8 % ) with monthly income claimed to be approximately 10,000NTD or less. It is likely that they are more willing to seek new engineering every bit good as return hazard of shopping online. So this consequence could be a perfect scenario and might non be nonsubjective.

For future work, since the context of this survey is non limited to any specific industry, this research theoretical account is a general one for most bing retailing industries, such as dresss, bookshops, and electronic consumeri??i??s goods. Therefore, the theoretical account is expected to be disparate under a different industry but the survey fails to look into. The hereafter survey could be conducted under a more specific industry to analyze this proposed theoretical account and is suggested to be evaluated in more states where Facebook users reach a considerable sum. Furthermore, since this survey is related to online shopping scenario, this theoretical account may non be equal for luxury goods, such as jewellery and diamond, as most consumers intend to confer with with clerks in individual and place genuineness of the high-value merchandises. Meanwhile, dealing online ever comes with hazards and consumers may worry about the possible revelation of their personal information recorded on the web site. In decision, more empirical surveies to analyze this new theoretical account will be indispensable. Finally, since it is important for retailing concern to maintain a stable client keeping rate, hereafter survey can be extended to look into if Facebook Fans page will be a prevailing factor to increase consumersi??i?? repurchase purpose online, which will assist retailing shop proprietors to find a MCR scheme that integrated complete online selling tactics.

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