Understanding online shopping behaviour using a transaction cost economics approach Online publication date: Sun, 09-Nov-2003
by Thompson S.H. Teo, Pien Wang, Chang Hong Leong
International Journal of Internet Marketing and Advertising (IJIMA), Vol. 1, No. 1, 2004
Abstract: Building upon Transaction Cost Economics (TCE) theory, this paper hypothesises that consumers' transaction cost of online shopping is affected by six antecedents: product uncertainty, behavioural uncertainty, convenience, economic utility, dependability, and asset specificity. In turn, transaction cost has a negative relationship with consumers' willingness to buy online. We test the model using data gathered from the USA and China. The results show that behavioural uncertainty and asset specificity are positively related to transaction cost whilst convenience and economic utility are negatively related to transaction cost among US consumers and those in China. Dependability is negatively related to transaction cost among US consumers but not consumers in China. Transaction cost is positively related to willingness to buy online among US consumers and those in China. US consumers perceive less product uncertainty, behavioural uncertainty, asset specificity, dependability, as well as more convenience and economic utility than consumers in China. The implications of the results are discussed.
Online publication date: Sun, 09-Nov-2003
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Internet Marketing and Advertising (IJIMA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org