Customer Perceptions of E-Service

International Journal of Retail & Distribution Management
Customer perceptions of e-service quality in online shopping

Gwo-Guang Lee Hsiu-Fen Lin
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Customer perceptions of e-service

quality in online shopping
Customer
perceptions of
e-service
Gwo-Guang Lee
Department of Information Management, National Taiwan University of
Science and Technology, Taipei, Taiwan
161
Hsiu-Fen Lin
Department of Information Management, St. Johns and St. Marys Institute of
Technology, Taipei, Taiwan
Abstract
Purpose This paper develops a research model to examine the relationship among e-service quality
dimensions and overall service quality, customer satisfaction and purchase intentions.
Design/methodology/approach Data from a survey of 297 online consumers were used to test
the research model. Confirmatory factor analysis was conducted to examine the reliability and validity
of the measurement model, and the structural equation modelling technique was used to test the
research model.
Findings The analytical results showed that the dimensions of web site design, reliability,
responsiveness, and trust affect overall service quality and customer satisfaction. Moreover, the latter
in turn are significantly related to customer purchase intentions. However, the personalization
dimension is not significantly related to overall service quality and customer satisfaction.
Research limitations/implications Future research can use different methodologies, such as
longitudinal studies, focus groups and interviews, to examine the relationship between service quality
and customer purchase behaviour in online shopping contexts.
Practical implications This study suggests that to enhance customer purchase intentions, online
stores should develop marketing strategies to better address the trustworthiness, reliability, and
responsiveness of web-based services. Online stores can devote valuable corporate resources to the
important e-service quality attributes identified by this study.
Originality/value This study developed the instrument dimensions of e-service quality by
modifying the SERVQUAL model to consider online shopping context. Moreover, the results of this
study provide a valuable reference for managers of online stores, as well as for researchers interested
in internet marketing.
Keywords Electronic commerce, Service quality assurance, Customer satisfaction, Purchasing,
Shopping, Structural analysis
Paper type Research paper
1. Introduction
With the rapid global growth in electronic commerce (e-commerce), businesses are
attempting to gain a competitive advantage by using e-commerce to interact with
customers. Businesses with the most experience and success in using e-commerce are
beginning to realize that the key determinants of success or failure are not merely web
site presence and low price but also include the electronic service quality (e-service
quality) (Yang, 2001; Zeithaml, 2002). Santos (2003) defined e-service quality as overall
customer assessment and judgment of e-service delivery in the virtual marketplace.
Service quality is an elusive and abstract construct that is difficult to explain and
measure (Cronin and Taylor, 1992). The SERVQUAL model, first developed by
International Journal of Retail &

Distribution Management
Vol. 33 No. 2, 2005
pp. 161-176
q Emerald Group Publishing Limited
0959-0552
DOI 10.1108/09590550510581485
IJRDM
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162
Parasuraman et al. (1988) has been widely tested as a means of measuring customer
perceptions of service quality. The SERVQUAL model contains five dimensions, namely
tangibles, reliability, responsiveness, assurance and empathy. Furthermore, during the
past decade, SERVQUAL model has been tested for measuring service quality in
e-commerce settings (Devaraj et al., 2002; Kim and Lee, 2002; Li et al., 2002; Kuo, 2003;
Negash et al., 2003). Previous studies on the measurement of e-service quality focused
only on the application of the SERVQUAL model by rewording the original scale items.
However, in the service quality field, service researchers need to pay more attention to
customer evaluations of e-services, because methods of measuring service quality differ
between e-commerce and physical marketplace service (Parasuraman and Grewal,
2000). Additionally, van Riel et al. (2001) proposed that the SERVQUAL scale items
would have to be reformulated before they could be used meaningfully in the online
shopping context. Thus, this study aims to identify the main influence on online
shopping service quality, using a modified version of the SERVQUAL model.
Research is required on the influence of e-services on all customer responses, such
as perceived service quality, customer satisfaction and purchase intentions
(Parasuraman and Grewal, 2000; Jeong et al., 2003). Understanding the determinants
of service quality, customer satisfaction and purchase intentions for online shopping is
important for both marketing researchers and online stores managers. Moreover,
previous studies have revealed that service quality in online environments is an
important determinant of the effectiveness of e-commerce (Yang, 2001; Janda et al.,
2002). However, few studies have examined the relation among different dimensions of
e-service quality in predicting overall service quality, customer satisfaction, and
purchase intentions for online shopping.
This study attempts to derive the instrument dimensions of e-service quality
through modifying the SERVQUAL model to consider the online shopping context,
and develops a research model to examine how e-service quality dimensions affect
overall service quality, customer satisfaction and purchase intentions. To prove the
usefulness of the research model, data were collected from 297 online consumers.
Confirmatory factor analysis (CFA) was conducted to examine the reliability and
validity of the measurement model, and the structural equation modeling (SEM)
technique was used to test the research model, which was supported by LISREL 8.3
software. The test results provide a valuable reference for managers of online stores, as
well as for researchers interested in internet marketing.
2. Literature review
2.1 E-service quality
E-service quality can be defined as overall customer evaluations and judgments
regarding the excellence and quality of e-service delivery in the virtual marketplace
(Santos, 2003). Research over the past two decades has demonstrated that service
quality influences consumption decisions, but only recently these findings have been
applied to e-commerce (Yang and Jun, 2002; Wolfinbarger and Gilly, 2003).
For example, service quality measures have been applied to assess the quality of
virtual community web sites (Kuo, 2003), satisfaction with e-commerce channels
(Devaraj et al., 2002), and determinants of web site success (Liu and Arnett, 2000).
Online shopping is a complex process that can be divided into various
sub-processes such as navigation, searching for information, online transactions, or
customer interactions. Customers are unlikely to evaluate each sub-process in detail

during a single visit to an online store, but rather will perceive the service as an overall
process and outcome (van Riel et al., 2001). Furthermore, for online customers, high
standard e-service quality is the means by which the potential benefits of the internet
can be realized (Yang, 2001). Because it is much easier to compare product technical
features and prices online than through traditional channels, e-service quality becomes
a key factor for customers (Santos, 2003). Online customers thus expect equal or higher
levels of service quality than traditional channels customers.
2.2 Service quality dimensions
Parasuraman et al. (1988) conceptualize service quality as the relative perceptual
distance between customer expectations and evaluations of service experiences and
service quality using a multi-item scale called the SERVQUAL model. The SERVQUAL
model includes the five dimensions of tangibles (physical facilities and the appearance
of personnel), reliability (ability to perform the promised service dependably and
accurately), responsiveness (willingness to help customers and provide prompt
service), assurance (employee knowledge base which induces customer trust and
confidence), and empathy (caring and individualized attention provided to customers
by the service provider).
The SERVQUAL scale recently has been widely used to measure information system
service quality (Pitt et al., 1997; van Dyke et al., 1999; Carr, 2002; Jiang et al., 2002). The
SERVQUAL scale also was employed to measure e-commerce system service quality
(Devaraj et al., 2002; Kim and Lee, 2002). Related studies on e-service quality have tested
the SERVQUAL scale and used it to measure service in various contexts, including
web-based service (Kuo, 2003; Negash et al., 2003), internet retail (Kaynama and Black,
2000; Barnes and Vidgen, 2001), and electronic banking (Zhu et al., 2002). Most research
on e-service quality measurement has focused on rewording the SERVQUAL scale
items. However, challenges in measuring web-based service quality exist due to the
differences between web-based and traditional customer service (Li et al., 2002).
Parasuraman and Grewal (2000) suggested that research is needed on whether the
definitions and relative importance of the SERVQUAL dimensions change when
customers interact with technology rather than with service personnel (p. 171).
Moreover, several studies have proposed that the SERVQUAL scale items must be
reformulated before they can be meaningfully used in the online shopping context
(van Riel et al., 2001; Santos, 2003). Thus, based on the SEVQUAL model with
consideration of the characteristics of the online shopping context should be partly
reformulated. Additionally, previous studies have suggested that perceived service
quality positively influences customer satisfaction and purchase intentions (Rust and
Zahorik, 1993; Martensen et al., 2000). Nevertheless, in the context of online shopping,
few studies have examined the usefulness of relative service quality dimensions in
predicting overall service quality, customer satisfaction and purchase intentions.
This study aims to:
(1) derive the instrument dimensions of e-service quality based on the SERVQUAL
model and modify them following reference to the related literature on the
online shopping context; and
(2) determine how the e-service quality dimensions affect overall service quality,
customer satisfaction and purchase intentions.
Customer
perceptions of
e-service
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3. Research model and hypotheses

Because the existing literature remains insufficient to provide a conceptual model of
e-service quality, empirical research is required to clarify the detailed determinants of
e-service quality and their influence on customer perceptions of online stores (Janda
et al., 2002; Yang and Jun, 2002; Santos, 2003). This study proposed that e-service
quality dimensions include web site design, reliability, responsiveness, trust and
personalization, and moreover developed a research model for understanding the
perceptions of rational customers regarding online shopping. The model proposed that
e-service quality dimensions are casually linked to the two performance measures of
overall service quality and customer satisfaction, and in turn influence customer
purchase intentions (see Figure 1).
3.1 E-service quality dimensions
This study used the revised SERVQUAL scale items to establish dimensions of
e-service quality through web site design, reliability, responsiveness, trust, and
personalization. The relationship among the e-service quality dimensions, overall
service quality and customer satisfaction is hypothesized and discussed below.
3.1.1 Web site design. Web site design quality is crucial for online stores (Than and
Grandon, 2002). Web site design describes the appeal that user interface design
presents to customers (Kim and Lee, 2002). The influence of web site design on
e-service performance has been studied extensively. For instance, Cho and Park (2001)
conducted an empirical research of a sample of 435 internet users to examine the
e-commerce user-consumer satisfaction index (ECUSI) for internet shopping.
They found that the customer satisfaction is assessed using the quality of web site
design. A recent empirical study found that web site design factors are strong
predictors of customer quality judgments, satisfaction, and loyalty for internet retailers
(Wolfinbarger and Gilly, 2003). Hence, the following hypotheses are proposed.
H1a. Web site design in an online store positively influences overall service quality.
H1b. Web site design in an online store positively influences customer satisfaction.
3.1.2 Reliability. Reliability represents the ability of the web site to fulfill
orders correctly, deliver promptly, and keep personal information secure
(Parasuraman et al., 1988; Janda et al., 2002; Kim and Lee, 2002). The importance of
Figure 1.
Research model
reliability has been emphasized by the information technology-based service.

Moreover, Zhu et al. (2002) argued that reliability dimension has a direct positive
effect on perceived service quality and customer satisfaction by electronic banking
systems. Online stores must provide mistake-free service and secure online
transactions to make customers feel comfortable using online shopping. The
following hypotheses thus are proposed.
H2a. Reliability in an online store positively influences overall service quality.
H2b. Reliability in an online store positively influences customer satisfaction.
3.1.3 Responsiveness. Customers expect online stores to respond to their inquires
promptly (Liao and Cheung, 2002). Responsiveness describes how often an online store
voluntarily provides services (e.g. customer inquires, information retrieval and
navigation speed) that are important to its customers (Parasuraman et al., 1988; Yang,
2001; Kim and Lee, 2002). Researchers examining the responsiveness of web-based
services have highlighted the importance of perceived service quality and customer
satisfaction (Yang and Jun, 2002; Zhu et al., 2002). The following hypotheses thus are
proposed.
H3a. Responsiveness design in an online store positively influences overall
service quality.
H3b. Responsiveness in an online store positively influences customer satisfaction.
3.1.4 Trust. Online shopping context comprises the interaction customers and online
stores (Bakos, 1991). Numerous studies have emphasized the importance of online trust
between customers and online stores (McKnight et al., 2002; Krauter and Kaluscha,
2003). Trust is a significant antecedent of participation in commerce generally, and
especially in online settings because of the increased ease with which online stores can
behave opportunistically (Reichheld and Schefter, 2000). Moreover, trust is defined as
customer willingness to accept vulnerability in an online transaction based on their
positive expectations regarding future online store behaviours (Kimery and McCard,
2002). That is, trust encourages online customer purchasing activity and affects
customer attitudes toward purchasing from an online store (Gefen, 2000; Gefen et al.,
2003). Consequently, the following hypotheses are proposed.
H4a. Trust in an online store positively influences overall service quality.
H4b. Trust in an online store positively influences customer satisfaction.
3.1.5 Personalization. The lack of real-time interaction tends to prevent potential
customers from purchasing through online shopping (Yang and Jun, 2002).
Personalization involves individualized attention, personal thank you notes from
online stores, and the availability of a message area for customer questions or
comments (Yang, 2001). Previous studies have examined the influence of the customer
service provided by internet retailers on customer perceptions of service quality and
satisfaction (Wolfinbarger and Gilly, 2003). The following hypotheses are proposed.
H5a. Personalization in an online store positively influences overall service
quality.
H5b. Personalization in an online store positively influences customer
satisfaction.
Customer
perceptions of
e-service
165
IJRDM
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3.1.6 Purchase intentions. As the internet has spread it has become a popular
marketing channel (Cho and Park, 2001). Analyzing customer evaluations of online
shopping is particularly interesting to academics and practitioners, especially in the
field of e-commerce (Wu, 2003). Previous studies have found that service provider
perceptions of customer satisfaction are a function of perceived service quality of
technological services (Martensen et al., 2000; Zhu et al., 2002).
The theory of reasoned action proposes that behaviour can be predicted from
intentions that correspond directly (in terms of action, target and context) to that
behaviour (Ajzen and Fishbein, 1980). This study thus postulated that consumer
purchase intentions provide an acceptable proxy for actual online purchase behaviour.
Additionally, previous studies have suggested that customer perceptions of service
quality and satisfaction positively influence purchasing intentions. For instance, Rust
and Zahorik (1993) noted that overall service quality and customer satisfaction
significantly influence customer retention, market share, and profitability. More
recently, Llusar et al. (2001) considered customer satisfaction as a mediator of the
relationship between firm perceived quality and customer purchase intentions. Based
on the above literature review, the following hypotheses are proposed.
H6. Overall service quality in an online store positively influences customer
satisfaction.
H7. Overall service quality in an online store positively influences customer
purchase intentions.
H8. Customer satisfaction with an online store positively influences purchase
intentions.
4. Research methodology
4.1 Measures
Table I lists all of the construct definitions of the instruments and the related literature.
This study adapted the measures used to operationalize the constructs included in the
investigated model from relevant previous studies, making minor wording changes to
tailor these measures to the online sopping context. Items for measuring web site design,
reliability, responsiveness, and personalization employed several dimensions of the
SERVQUAL model (Parasuraman et al., 1988; Kim and Lee, 2002; Yang and Jun, 2002),
items for trust were revised from Kimery and McCard (2002), and items for overall
service quality, customer satisfaction and purchase intentions were modified from Zhu
et al. (2002) and Jeong et al. (2003). All items were measured using a seven-point
Likert-type scale (ranging from 1 strongly disagree to 7 strongly agree).
With the establishment of content validity, the questionnaire was refined through
rigorous pretesting. The pretesting focused on instrument clarity, question wording and
validity. During the pretesting, 15 experienced online shoppers were taken as subjects
and invited to comment on the questions and wordings. The comments of these 15
individuals then provided a basis for revisions to the construct measures. Several items
were removed from the instrument based on the feedback from the pretesting subjects.
Table II lists the final questionnaire items used to measure each construct.
4.2 Subjects and procedure
A total of 305 questionnaires were distributed to senior year undergraduate students
taking the course on e-commerce at St. Johns and St. Marys Institute of Technology,
Construct
Definition
References
Web site design
Customer perception of degree of user

friendliness in using an online store
Customer perception of the reliability and
security of the service provided by an
online store
Customer perception of the
responsiveness and helpfulness of the
service provided by an online store
Customer perception of the level of trust
mechanisms provided by an online store
Customer perception of the degree to
which an online store provides
differentiated services to satisfy specific
individual needs
Customer perceptions of service quality
provided by an online store
Customer satisfaction with an online store
Customer likelihood of buying from a
particular online store
Parasuraman et al. (1988)

and Kim and Lee (2002)
Reliability
Responsiveness
Trust
Personalization
Overall service quality

Customer satisfaction
Purchase intentions

Customer
perceptions of
e-service
167

Kimery and McCard (2002)
and Yang and Jun (2002)
Zhu et al. (2002)
Zhu et al. (2002)
Jeong et al. (2003)
Taipei, Taiwan in the spring of 2003. The student subjects were selected in this study
for three reasons. First, according to the 2003 Taiwan internet users survey report
(http://survey.yam.com/survey/2003/index.htm, 2004), about 40 percent of internet
users in Taiwan are college students. Moreover, college students are greatest
proportion of internet users. Second, online customers generally are younger and better
educated than conventional customers, meaning that the student subjects closely
resemble the online customer population (Mcknight et al., 2002). Finally, the use of
students as subjects in this study can decrease the effect of variance in web-based
literacy.
The study was conducted in the following stages. First, the subjects were
instructed to navigate online bookstores (such as www.amzon.com, www.books.
com.tw, and www.silkbook.com.tw) and search for books related to e-commerce
course they were taking. Next, the subjects were asked to select a textbook or
reference book related for the course that they would like to buy from an online
bookstore, and fulfillment time cannot be over 30 days. The subjects were given
two tasks representing the online transaction process. The first task was to
register with an online bookstore, search for the book selected by the participants
and place it in the shopping cart. The second task involved filling out certain
payment and delivery data. After completing these two tasks, all the 305 students
completed the task successfully and the questionnaires were distributed in class.
The response rate was 100 percent, but since eight questionnaires later were
discarded because of missing data, the effective response rate was approximately
97 percent.
Of the 297 usable respondents, 68.4 percent were less than 25 years of age
n 203; 26.9 percent were 26-35 n 80; and 4.7 percent were over 35 years old
n 14: About 44 percent of the respondents had previously bought from online
Table I.
Constructs definition
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Table II.
Summary of
measurement scales
Construct/measure
Web site design
The online bookstore is visually appealing
The user interface of the online bookstore has a
well-organized appearance
It is quick and easy to complete a transaction at the
online bookstore
Reliability
The online bookstore delivers on its undertaking to
do certain things by a certain time
The online bookstore shows a sincere interest in
solving customer problems
Transactions with the online bookstore are error-free
The online bookstore has adequate security
Responsiveness
I think the online bookstore gives prompt service
I believe the online bookstore is always willing to
help customers
I believe the online bookstore is never too busy to
respond to customer requests
Trust
I believe the online bookstore is trustworthy
The online bookstore instills confidence in customers
Personalization
The online bookstore provides the targeting e-mail to
customers
The online bookstore provides the recommendation
of books by customers preferences
The online bookstore provides customers free
personal homepage
My overall opinion of the services provided by online
bookstore is very good
Overall, I am satisfied with online bookstore online
experience
Purchase intentions
If I purchase books in the next 30 days, I will use the
online bookstore
I strongly recommend that others use the online
bookstore
Mean
S.D.
Factor
loading
5.44
0.78
0.80
5.25
0.78
0.77
5.45
0.71
0.75
Construct
reliability
0.77
0.85
5.63
0.74
0.76
5.45
5.70
5.39
0.82
0.84
0.82
0.78
0.72
0.84
5.16
0.73
0.78
5.62
0.82
0.85
5.64
0.72
0.77
5.54
5.49
0.77
0.78
0.73
0.89
0.80
0.81
0.74
4.28
0.59
0.86
5.18
0.64
0.75
4.60
0.72
0.70
5.34
0.56
1.00
5.48
0.61
1.00
0.80
5.11
0.79
0.93
5.30
0.82
0.73
bookstores n 131: Finally, about 54 percent of the respondents were male

n 159 and 46 percent were female n 138:
4.3 Statistical analysis
The research model shown in Figure 1 was analyzed primarily using SEM, supported
by LISREL 8.3 software. Numerous researchers have proposed a two-stage
model-building process for applying SEM (Hoyle, 1995; Joreskog and Sorbom, 1996;
Hair et al., 1998). Confirmatory factor analysis (CFA) was conducted to

examine the reliability and validity of the measurement model, and the structural
model also was analyzed to test the associations hypothesized in the present research
model.
5. Results
5.1 Measurement model
The measurement model was first assessed by CFA. Previous research has noted that
the normed x 2 (the ratio between x 2 and the degree of freedom) provides direct
statistical evidence for the test of model goodness of fit (GFI) (Joreskog and Sorbom,
1996). The observed normed x 2 for this model was 2.04 x 2 373:99; df 183;
smaller than the three recommended by Bagozzi and Yi (1988). Other fit indexes also
show good fit for the measurement model. The GFI is 0.93, greater than the 0.9
recommended (Joreskog and Sorbom, 1996). Moreover, the adjusted goodness of fit
index (AGFI) is 0.88, which is slightly low, but still acceptable (Bagozzi and Yi, 1988).
Furthermore, the nonincremental fit index, such as the comparative fit index (CFI) is
0.91, exceeding the recommended cut-off level of 0.9 (Bagozzi and Yi, 1988). Finally,
the root mean square error of approximation (RMSEA) is 0.049, which also suggests
a good fit to the data (Bagozzi and Yi, 1988). In sum, the measurement model exhibited
a fairly good fit with the data collected.
The measurement model was further assessed for construct reliability and validity.
Construct reliability can be calculated as follows: (square of the summation of the
factor loadings)/{(square of the summation of the factor loadings) (summation of
error variances)}. The interpretation of the resultant coefficient is similar to that
of Cronachs alpha, except that it also takes into account the actual factor loadings
rather than assuming each item to be equally weighted in the composite load
determination. From Table II, construct reliability for all factors in the measurement
model exceeded 0.7, which Nunnally and Bernstein (1994) identified as an acceptable
threshold.
Bagozzi and Yi (1988) defined a factor loading exceeding 0.7 as evidence of
convergent validity. From Table II, the factor loadings for all constructs exceed the
recommended level of 0.7, indicating acceptable item convergence on the intended
constructs. Additionally, from Table III, correlation between constructs ranged from
0.05 to 0.67, with the correlations of no pair of measures exceeding the criterion (0.9 and
above) (Hair et al., 1998). Empirical support thus exists for the discriminant validity of
the measures.
Web site design

Reliability
Responsiveness
Trust
Personalization
Purchase intentions
1.00
0.67
0.50
0.05
0.46
0.29
0.59
0.46
1.00
0.62
0.30
0.54
0.55
0.34
0.42
1.00
0.31
0.11
0.40
0.51
0.57
1.00
0.10
0.11
0.65
0.41
1.00
0.24
0.49
0.22
1.00
0.32
0.25
1.00
0.30
1.00
Customer
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Table III.
Constructs correlations
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5.2 Structural model

The hypothesized research model was tested using the structural model. The over all
fit statistics suggest that the model has adequate model fit x 2 423:92; df 193;
x 2 =df 2:21; GFI 0:93; AGFI 0:90; CFI 0:91; RMSEA 0:044: The model fit
indexes all exceed their respective common acceptance levels, indicating that the
displayed fitted the data well.
The statistical significance of all the structural parameter estimates was examined
to determine the validity of the hypothesized paths. Table IV lists the structural
parameter estimates and the hypothesis testing results. This study examines the
relationships between the dimensions of e-service quality and customer purchase
intentions mediated by overall service quality and customer satisfaction in the online
shopping context. The analytical results showed that online store web site design
positively affects overall service quality b 0:21; p , 0:01 and customer
satisfaction b 0:22; p , 0:01; providing support for H1a and H1b. Moreover,
online store reliability significantly and positively affects overall service quality
b 0:35; p , 0:001 and customer satisfaction b 0:39; p , 0:001; supporting
H2a and H2b. Furthermore, responsiveness in the online store positively affects
overall service quality b 0:19; p , 0:01 and customer satisfaction b 0:25;
p , 0:01; so H3a and H3b are supported. From H4a and H4b, trust in the online
store shows a strong positive relationship with overall service quality b 0:44;
p , 0:001; and a positive relationship with customer satisfaction b 0:30; p ,
0:001: Thus, H4a and H4b are supported. However, H5a and H5b were not
supported, indicating that personalization in the online store was not significantly
related to overall service quality b 0:11; p . 0:01 or customer satisfaction
b 0:09; p . 0:01:
H6-H8 relate to the links among overall service quality, customer satisfaction and
customer purchase intentions. Overall service quality has a strong positive effect on
customer satisfaction b 0:42; p , 0:001; therefore, H6 was supported.
Additionally, overall service quality and customer satisfaction were found to
significantly affect online store purchase intentions, so H7 b 0:28; p , 0:01 and
H8 b 0:34; p , 0:001 are supported.
Path to
Path from
Web site design

Reliability
Responsiveness
Trust
Personalization
Web site design
Reliability
Responsiveness
Trust
Personalization
Table IV.
Results of estimation
structural model
Purchase intentions
Notes: *p , 0:01; and **p , 0:001
Hypothesis
Structural coefficients
t-value
H1a
H2a
H3a
H4a
H5a
H1b
H2b
H3b
H4b
H5b
H6
H7
H8
0.21
0.35
0.19
0.44
0.11
0.22
0.39
0.25
0.30
0.09
0.42
0.28
0.34
2.05*
4.47**
2.21*
5.10**
1.06
2.47*
4.93**
2.86*
3.70**
0.84
4.79**
2.63*
3.90**
6. Discussion
This study developed instrument dimensions of e-service quality through modifying
the SERVQUAL model in the online shopping context. The dimensions of e-service
quality included web site design, reliability, responsiveness, trust and personalization.
Moreover, this study developed a research model to examine how e-service quality
dimensions affect overall service quality, customer satisfaction, and purchase
intentions. The analytical results of this study are discussed below.
First, the analytical results showed that trust most strongly affected overall service
quality and customer satisfaction for online stores. This analytical result is consistent
with that of Gefen (2000), who found that trust is a strong determinant of e-service
performance that identified trust as key drivers of perceived service quality and
customer satisfaction. Online stores thus must act honestly and in the best interests of
customers during the transaction processes.
Second, the reliability dimension is a significant predictor of overall service quality,
customer satisfaction and purchase intentions in online shopping. Other studies also
found reliability to be an effective determinant of web-based service quality (Kuo, 2003;
Wolfinbarger and Gilly, 2003). Therefore, to enhance customer satisfaction and
purchase intentions, online stores should start improving the dimensions of reliability,
such as capability of delivering products as promised, providing up-to-date and
accurate information, and strengthening the security of online transactions.
Third, the dimension of responsiveness mildly affects overall service quality and
customer satisfaction for online stores. This finding might be cause by the fact that
customers expect high responsiveness from the prompt delivery of products, but might
tolerate slower financial transactions if such transactions have increased security
(van Riel et al., 2001).
Next, although web site design had only a minor effect on overall service quality
and customer satisfaction in this study, its importance should not be underestimated.
Online stores should pay careful attention to this aspect. Particularly, web site design
should be readable, and the user interface should be visually appealing and tidy,
allowing customers to use the web site easily.
However, perhaps most surprising is the dimension of personalization, which is not
a significant predictor of overall service quality and customer satisfaction for online
stores. This finding might indicate that customers are afraid that the online stores will
sell personal information to other organizations without their knowledge or
permission. Notably, increasing numbers of online customers have expressed
concern regarding potential misuses of personal information and abuses of privacy
(Than and Grandon, 2002).
Additionally, consistent with previous studies (Baker and Crompton, 2000; Sivadas
and Prewitt, 2000; Zhu et al., 2002), this study found a positive relationship among
overall service quality, customer satisfaction and purchase intentions in an online store.
7. Conclusions
The conclusions drawn from this study make contributions in two main areas. First,
this study developed the instrument dimensions of e-service quality by modifying the
SERVQUAL model to consider online shopping context. Second, this study identified
e-service quality dimensions that affect overall service quality and customer
satisfaction, which in turn are significantly related to customer purchase intentions.
Customer
perceptions of
e-service
171
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33,2
172
The implications for practitioners and researchers and the limitations of this study are
discussed below.
7.1 Implications for practitioners
This study has the following implications for practitioners initiating or currently
conducting internet commerce. First, this study suggests that to enhance customer
purchase intentions, online stores should develop marketing strategies to better
address the trustworthy, reliability, and responsiveness of web-based services. Online
stores can devote valuable corporate resources to the important e-service quality
attributes identified by this study. For example, improvement of the level of credibility,
security, and prompt services is necessity for both attracting and retaining online
customers, since these factors significantly affect customer satisfaction and purchase
intentions. Second, web site design cannot be ignored. Web site design is an important
means to provide customer usefulness and ease of use during online transaction
processes.
Another important implication of this study relates to personalization and online
customer privacy. As internet technologies become increasingly sophisticated and web
sites can deliver more targeted content, demand for personalization continues to grow
(Gurau et al., 2003). On the other hand, studies have indicated that many online
customers are very concerned about threats to their personal privacy (Graeff and
Harmon, 2002). Online stores thus must try to ensure that customers receive relevant
information while simultaneously protecting their privacy, because personalization
should not be intrusive. Moreover, online stores should carefully consider the extent to
which actively providing members with personal services is necessary given limited
human and material resources.
7.2 Implications for researchers
Several future research directions exist. First, future research can use different
methodologies, such as longitudinal studies, focus groups and interviews to examine
the relationship between service quality and customer purchase behaviour in online
shopping contexts. Second, the growth of the internet and online shopping will
continue, and future research can replicate similar studies solely involving online
shoppers, measuring actual purchase behaviours instead of intentions. This procedure
is designed to understand if there are any significant difference in the perceptions of
e-service quality of internet users and internet purchasers. Third, although the scales
used for measuring dimensions of e-service quality are similar to existing scales,
further research might consider developing more elaborate measures to allow for richer
coverage of e-service quality scales. Finally, evidence exists that the relative
importance and possible meaning of web site quality may differ across cultures (Gefen,
2000; Tsikriktsis, 2002). Thus, the study can be replicated in different cultures to
provide cross-cultural comparisons.
7.3 Limitations
This study suffers four main limitations. First, the sample employed student subjects,
which may not be representative of the general population of online shoppers.
The analytical results presented here thus may have limited generalizability. Second,
since this study only considered online bookstores, it is unclear whether the analytical
results can be generalized to other online marketplaces. Further research can apply the
research model to examine other types of online stores, because online customer
perceptions of service quality are context-dependent and thus their detailed effects on
purchase intentions may be related to specific products and services. Third, this study
did not incorporate actual purchase behaviour into the proposed research model.
However, this shortcoming does not represent a serious limitation since substantial
empirical support exists for the causal link between intention and behaviour
(Venkatesh and Davis, 2000). Finally, since the sample was collected in Taiwan,
generalizability to other countries might be limited due to cultural differences
in purchase behaviours.
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(Dr Gwo-Guang Lee is an associate professor in the Department of Information Management at
National Taiwan University of Science and Technology (NTUST), Taipei, Taiwan. He received
the PhD from the School of Computer Studies at the University of Leeds, UK, in 1993.
Currently, he also works as a consultant for the Center of Electronic Commerce at NTUST, as
well as large Taiwanese firms. Dr Lee has published in the Journal of Information Technology,
Customer
perceptions of
e-service
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Behaviour and Information Technology, Industrial Management and Data Systems, and
Management Decision. His current research interests focus on internet marketing, IS strategic
planning, and e-business.
Hsiu-Fen Lin is a lecturer in the Department of Information Management at St. Johns &
St. Marys Institute of Technology, Taiwan. She received her MS degree in Information
Management from National Chengchi University, Taiwan, in 1996, and is currently a
PhD candidate in Information Management at National Taiwan University of Science and
Technology, Taiwan. She has published in the Management Decision. Her research
interested issues in Internet marketing, electronic commerce planning, and knowledge
management.)
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Customer perceptions of e-service quality in online shopping

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Customer perceptions of e-service

International Journal of Retail &

customer interactions. Customers are unlikely to evaluate each sub-process in detail

3. Research model and hypotheses

reliability has been emphasized by the information technology-based service.

Web site design

Customer perception of degree of user

Parasuraman et al. (1988)

Overall service quality

Parasuraman et al. (1988)

Parasuraman et al. (1988)

bookstores n 131: Finally, about 54 percent of the respondents were male

Hair et al., 1998). Confirmatory factor analysis (CFA) was conducted to

Web site design

5.2 Structural model

Overall service quality

Web site design

Notes: *p , 0:01; and **p , 0:001

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