Group 4 – Hung Wing Shan (13007017) Kwan Nok Him, Jeffrey (12021148) Tang Mei Ling (13007025)...
49
ISEM3120 Seminar in Information Systems and e-Business Management Presentation 1 (C14): Bhattacherjee, A. (2001). An empirical analysis of the antecedents of electronic commerce service continuance. Decision support systems , 32 , 201-214. Group 4 – Hung Wing Shan (13007017) Kwan Nok Him, Jeffrey (12021148) Tang Mei Ling (13007025) Tsang Wing Shan (13007386) Wong Sze Ching (13006274)
Group 4 – Hung Wing Shan (13007017) Kwan Nok Him, Jeffrey (12021148) Tang Mei Ling (13007025) Tsang Wing Shan (13007386) Wong Sze Ching (13006274)
Group 4 Hung Wing Shan (13007017) Kwan Nok Him, Jeffrey
(12021148) Tang Mei Ling (13007025) Tsang Wing Shan (13007386) Wong
Sze Ching (13006274)
Slide 2
Agenda 2 1.Introduction 1.1 Keywords definition 1.2 Research
paper concept 1.3 Research rationale 1.4 Research objectives 3-10
2.Research method 2.1 Model 2.2 Questionnaire 2.3 Data analysis and
results 11-35 3.Findings 3.1 Continuance intention 3.2 Associations
between antecedent constructs 36-44 4.Conclusion 4.1 Limitations
4.2 Further discussion 45-48
Slide 3
1.1 Keywords definition 1.2 Research paper concept 1.3 Research
rationale 1.4 Research objectives 3
Slide 4
1.1 Keywords definition IS Use Information Systems Use The
internet redefines rules of doing business by: Increasing
transaction efficiencies Reducing costs Lowering barriers to entry
Causing online firms turning to customers relationship management
(CRM) to survive in internet economy Continuance Consumers
continuance intention Determined by: Consumers satisfaction with
initial service use Perceived usefulness of service use Interaction
between perceived usefulness & loyalty incentives for service
use 4
Slide 5
Customer satisfaction A measure of: how products and services
supplied by a company meet or surpass customer expectation
Predicted by consumers confirmation of expectations from initial
service use Customer Relationship Management (CRM) A new
customer-centric business model Reorients firm operations around
customer needs opposed to products, resources, or processes Improve
customer satisfaction, loyalty, and retention 5 1.1 Keywords
definition
Slide 6
Expectationconfirmation Theory (ECT) Theory in consumer
behavior literature Points satisfaction with a product or service
is the primary motivation for its continuance Technology Acceptance
Model An 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 6 1.1
Keywords definition
Slide 7
1.2 Researcher paper concept The paper examines key drivers of
consumers intention to continue using business-to-consumer
e-commerce services. 7
Slide 8
1.3 Research rationale 8
Slide 9
9
Slide 10
1.4 Research objectives 10
Slide 11
2.1 Model 2.2 Questionnaire 2.3 Data analysis and results
11
Slide 12
2.1 Model 12 Fig. 1. A theoretical model of customer
satisfaction/continuance.
Slide 13
2.1 Model B2C firms typically have 3 customer touch points: 13
Marketing Pre- transaction Sales Transaction Service Post-
transaction
Slide 14
2.1.1 Determinants of continuance intention (expectations) 3
key factors - influencing consumers decision to continue using
e-commerce services Satisfaction Perceived usefulness Loyalty
incentives 14
Slide 15
2.1.2 Relationships among the determinants of intention H1 H1:
Positive effect from satisfaction to continuance intention H2 H2:
Positive effect from perceived usefulness to continuance intention
15 Satisfaction +ve Continuance intention Perceived usefulness +ve
Continuance intention
Slide 16
2.1.2 Relationships among the determinants of intention H3 H3:
Positive effect from loyalty incentives to Continuance intention 16
Loyalty incentives +ve Continuance intention
Slide 17
2.1.2 Relationships among the determinants of intention H4 H4:
Positive effect from confirmation to satisfaction H5 H5: Positive
effect from confirmation to perceived usefulness 17 Confirmation
+ve Perceived usefulness Confirmation +ve Satisfaction
Slide 18
2.2 Questionnaire Continuance intention: IN1. I want to
continue using my OLB rather than discontinue its use. IN2. My
intentions are to continue using my OLB rather than any alternative
means. IN3. If I could, I would like to discontinue use of my OLB.
Satisfaction: ST1. I am satisfied with my decision my OLB use. ST2.
My choice to use this OLB was a wise one. *ST3. I am not happy with
my earlier decision to use my OLB. *ST4. My experience with using
this OLB was very unsatisfactory. ST5. I think I did the right
thing by deciding to use my OLB. )ST6. If I were to do it again, I
would feel differently about using my OLB. 18 *Reverse coded items.
Items dropped from final analysis due to poor factor loadings.
Slide 19
2.2 Questionnaire Perceived usefulness: US1. Using my OLB helps
me improve my performance in managing personal investments. US2. I
think that my OLB use improves my productivity in managing personal
investments. US3. In my opinion, using my OLB increases my
effectiveness in managing personal investments. US4. I find my OLB
useful in managing personal investments. Loyalty incentives: LI1.
My OLB offers incentives for its continued use, such as frequent
flier miles or bonus points. LI2. I get rewarded for my continued
patronage of my OLB. *LI3. My OLB generally does not give me any
loyalty incentives for my continued use of its service. 19 *Reverse
coded items. Items dropped from final analysis due to poor factor
loadings.
Slide 20
2.2 Questionnaire Confirmation: CN1. My OLBs execution of
online trades meets my expectations. CN2. My OLB gives me all the
information and tools needed to place and execute trades. *CN3. My
online trading experience via my OLB falls short of my
expectations. CN4. My OLB is generally good at handling questions
or complaints before or after a trade. CN5. After-sales service
provided by my OLB meets my expectations. CN6. I generally get the
level of service I expect from my OLB. CN7. My OLB provides me with
customized one-on-one marketing as I would expect. CN8. Products
and services recommended to me by my OLB meet my expectations. CN9.
My OLBs direct marketing activities meet my expectations. 20
*Reverse coded items. Items dropped from final analysis due to poor
factor loadings.
Slide 21
2.2.1 Study background Online survey of Online brokerage (OLB)
use On 4 popular investment-related websites Opportunity to
register in a drawing for small cash prizes as incentive 172 usable
responses from OLB users Data collection 21 Yahoo Finance, Silicon
Investor, Motley Fool & Raging Bull
Slide 22
2.2.1 Study background Respondents 22 4% 24% Silicon Investor
73% Yahoo boards Motley Fool and Raging Bull
Slide 23
2.2.1 Study background Subjects represented a wide range of
OLBs, as listed in Table 1. 23
Slide 24
2.2.1 Study background Respondents 24 Age19 to 54 Gender69%
male & 31% female Annual incomeBetween US$24,000 and 200,000
ProfessionsWide range (IS professionals, salesrmarketing, bank-
ingrfinance, law, and education) Educational levelsDiverse (from
college freshmen to doctoral degrees) Experience in OLBsMany:
relatively new to online trading; Some: had used as early as 1994
34%: transitioned from a traditional full-service brokerage to an
OLB 11%: switched from a different OLB to their current one
(primary reasons: service dissatisfaction & higher
commissions)
Slide 25
2.3 Data analysis and results Examine the measurement model
Validating Refining the research instrument Stage 1 Analyze the
structural equation model Testing the associations Stage 2 25
Slide 26
Stage 1: Measurement model Using confirmatory factor analysis
(CFA) 26 Construct validity Assessed by examining the standardized
CFA factor loadings Minimum factor loadings: 0.60 Scale reliability
Using Cronbach alpha Standard acceptance norm: 0.80
3.1 Continuance intention 3.2 Associations between antecedent
constructs 36
Slide 37
3. Findings 37 Goal 1. Identify the antecedents of consumers
continuance intentions from a CRM standpoint 2. Identify
interrelationships among these antecedents
Slide 38
3.1 Continuance intention (Satisfaction) Satisfaction and
perceived usefulness Strong predictors of consumers intention
Satisfaction most important predictor! Minimizing the effects of
customer churn & Establishing a loyal customer base Seek to
identify dissatisfied consumers and redress their dissatisfaction
concern 38
Slide 39
3.1 Continuance intention (Satisfaction) Key metric =
Satisfaction Change from customer aware customer centered 39
Reasons to minimize churn (discontinuance) 1. Churn reduces firms
customer base and revenue 2. Negative WOM initiated by
discontinuers is more persuasive 3. Firms incur substantial costs
in order to get back prior consumers
Slide 40
3.1 Continuance intention (Perceived usefulness) Perceived
usefulness = Secondary determinant What we can do? 'educate them 40
Whats the limitation? 1. Continue subscribing service only if its
useful. 2. Do not recognize all of service's benefit due to limited
prior experience.
Slide 41
3.1 Continuance intention (Perceived usefulness) Loyalty
incentive e.g. frequent filter miles, loyalty points and cash back
--> X Significant Interaction effect with perceived usefulness
Significant Mix consumer training/education and loyalty program
Maximize the effect of loyalty incentives 41
Slide 42
3.2 Association between antecedent constructs Confirmation
significant predictor of satisfaction and perceived usefulness
Influence consumer's decision process(confirmation) Expectation
vary greatly Solution: Segmentation 42 Expectation is a complex and
challenging task High expect disconfirmation Low expect reduce
motivation continue to use service
Slide 43
43 3.2 Associations between antecedent constructs Confirmation
Marketing expectations Sales Services Marketing confirmationSales
and service confirmat ion Personalized One to one Direct marketing
Sales Service Unclear what extent individual consumers are aware of
such expectation problematic in confirming expectations
Well-defined by virtue of their prior experience Readily assess
those firm is meeting at least expectations Confirmation
Dissociation From CRM perspective During empirical analysis
Slide 44
44 3.2 Associations between antecedent constructs Firms:
Evaluate whether such costs are justified in lieu of retaining a
dissatisfied consumers business Implementing satisfaction
guaranteed policy e.g. Additional service & manpower cost
Uncertainty about whether dissatisfied consumers will return after
dissatisfaction is resolved Cost
Slide 45
4.1 Limitations 4.2 Further discussion 45
Slide 46
4.1 Limitations 1.Methodological limitation - Novelty effect
Problem: empirical data may be biased Test for biases: 99%
comfortable with online surveys 2.Non-response bias Problem:
respondents recruited via online message board differ from general
population Test for biases: Compare variable [1] Not a serious
concern Demographic Age Income level Contextual Portfolio size
Weakly significant Non-significant Target population fairly
represented, response not substantively different [1] Silicon
Investor, Silicon Investor User Profile,
http://www.go2net.com/corporate/advertising/siliconinvestor/demo.html,
1999. 46
Slide 47
4.1 Limitations 3. Bias on continuance intentions option 40 %
of respondents: complicated and expensive process NOT view OLB
discontinuance as a viable option Test for biases: Separate
discontinuance-aware & unware respondents rerun the result
separately Result: Overall pattern of path significance and
relative influence of determinants were unchanged Bias in
perceptions of continuance behaviors not affect response 47
Slide 48
Application of theoretical model may cause bias in interpreting
the causative relationships Constraints: variables, relationships,
assumptions, boundary conditions biased interpretation of problem
domain and solution space Problem: Additional determinants relevant
to continuance intention examined 48 4.2 Further discussion Using
diverse theoretical perspectives Validate the model/propose a more
comprehensive explanation