Evaluation of Factors Affecting the Value of Online Shopping Considering Price Sensitivity and Variety-Seeking of Buyers

Authors

University of Yazd

Abstract

Ease of access to information, possibility to compare products quickly, and many other facilities that Internet provides for consumers, increase the power of consumers much higher. Internet sellers for the purpose of increasing their sales, often offer lower prices in compare to retailer's price. Nevertheless, the recent studies represent that even price-sensitive customers, avoid shopping from low price online stores. Rather value is considered as the key driver of costumers' decision-making in economic and marketing. Therefore, it is necessary to try to identify those factors affecting online shopping. This research is aimed to study the effective factors on customer's values using survey research method, descriptive-causal type. The research statistical population consists of people who have an experience of on-line shopping at lease for one time. Data were analyzed using structural equation modeling method via LISREL software and partial least squares method via SMART PLS software. The results showed that, although system quality is an effective factor on utilitarian shopping values, information quality have no effect on both utilitarian and hedonic values. Generally, utilitarian and hedonic values could cause to online consumers' satisfaction, and satisfaction significantly could improve repurchase intention. Moreover, the results show the moderating effect of price sensitivity in relation of system quality and information with utilitarian value and also moderating effect of variety-seeking in relation of information quality with hedonic value.

Keywords