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Generation Y
Generation Y consumer online consumer online
repurchase intention in Bangkok repurchase
intention
Based on Stimulus-Organism-Response
(SOR) model 53
Bing Zhu, Suwanna Kowatthanakul and Punnaluck Satanasavapak Received 7 April 2018
Department of Marketing, Assumption University, Bangkok, Thailand Revised 9 May 2018
14 January 2019
15 June 2019
Accepted 31 July 2019
Abstract
Purpose – The rapid growth of e-commerce has encouraged online retailers to adapt to the purchase behaviour
of Generation Y consumers. For this purchase, the purpose of this paper is to investigate Generation Y online
consumer repurchase intention in Thai context based on Stimuli-Organism-Response (SOR) model.
Design/methodology/approach – Data were used to test the hypotheses that Generation Y consumer
online response is influenced by online environment cues and organism. In total, 401 questionnaires were
collected in Bangkok through judgemental sampling and convenient sampling. SPSS 24 was used to analyse
Generation Y consumers’ demographic information and reliability test. Amos 24 was utilized to examine
measurement model and structural equation model.
Findings – The findings finally revealed that website security presents the strongest influence on
Generation Y consumers trust. Also, online promotion possesses the weakest association with Generation Y
consumers trust. More importantly, Generation Y consumer online repurchase intention is positively
influenced by the degree of trust they have towards websites. The implications of the findings for
marketers are discussed.
Research limitations/implications – The empirical data are limited to generate findings from a limited
number of Generation Y consumers in Bangkok only. Also, the study limits itself to explore only inter-
relationship in the scope of SOR.
Practical implications – It is suggested that in order to draw attention from and retain Generation Y
consumers, online retailers should aim at strengthening trust-building in the online buyer–seller context as well as
a dynamic promotional campaign. Moreover, a constellation of relevant marketing strategies is recommended.
Originality/value – Since there is a lack of implementation of SOR model based on the Thai context, this
paper fills the gap by illustrating how SOR works in Thailand with updating findings.
Keywords Trust, E-commerce, Online repurchase intention, Stimuli-Organism-Response (SOR) model
Paper type Research paper

1. Introduction
The development of science and technology has made changes to the way we live and the way
we consume (Kim and Kim, 2004). It is undeniable that the extensive usage of internet has
incubated and facilitated e-commerce (Avinash and Akarsha, 2017). Traditionally, consumers
visit stores to buy goods (Laohapensang, 2009) but at present, internet allows the consumers
to complete their purchases without travelling to stores (Ling et al., 2010). However, the
number of online visitors who eventually make a purchase is relatively small as compared to
the huge number of active internet users (Ai-Maghrabi and Dennis, 2011; Gupta and Kim,
2007). For this reason, the competition in the marketplace is getting fierce. The interaction,
customization, personalization and visualization of products and services have intensified
(Deloitte, 2017; Detmer, 2002). This pushes online retailers to adopt or evolve new business
models in order to win the customers from competitors (Kim and Kim, 2004). In this context, it
is believed that the victory of online retailers is determined not only by the fundamental
characteristics of products and services that are promoted in the market (Kim and Kim, 2004)
International Journal of Retail &
but also the way to retain the customers. Hence, retention of existing customers has become Distribution Management
indispensable for online retailers since they find it hard to get the attention of new customers, Vol. 48 No. 1, 2020
pp. 53-69
which makes understanding consumers repurchase behaviour or repurchase intention © Emerald Publishing Limited
0959-0552
extremely important for the academicians and marketers (Kumar and Anjaly, 2017). DOI 10.1108/IJRDM-04-2018-0071
IJRDM Consumers’ repurchase intention is essential to the profitability and sustainable growth
48,1 of online retail business (Lee et al., 2011). By and large, an online store gains profits from one
customer only if he or she makes purchase at least four times in average (Mainspring and
Bain & Company, 2000; Chiu et al., 2009). In this circumstance, repurchase is equivalent to
being loyal to the store (Lee et al., 2011; Safa and Ismail, 2013). Bhattacherjee (2001)
explained that customers tend to make repurchase decisions based on their satisfactory
54 level with prior experience (see also Pappas et al., 2014). Since the existing customers
already have experienced the use of product or service, the biggest challenge for online
retailers is how to keep those existing customers and by what means to stimulate them to
purchase more. For this reason, numerous scholars have emphasized the role of customer
satisfaction in encouraging repurchase behaviour (Qureshi et al., 2009). However, other
factors such as trust also affect repurchase behaviour (Lin and Lekhawipat, 2014; Shi et al.,
2018). Logically speaking, if a customer does not trust a store, then he or she will not step
into the store again. This is true not only to physical stores but also online stores.
Consumers will likely continue to purchase from a particular store when they are confident
about the way business is progressing (Ai-Maghrabi and Dennis, 2011). As a result,
establishment of bilateral trust between buyer and seller is a prerequisite for the success of
e-retail business.
Trust is identified as a crucial element in buyer–seller dynamics (Poon et al., 2017;
Roberts-Lombard et al., 2017). It is understandable that people hesitate to purchase online if
they lack confidence in the website (Chen and Barnes, 2007). Hence, strengthening
consumers’ trust in website becomes pivotal in the propulsion of online purchase since
consumers tend to judge an online store according to the extent to which they trust the store
(Ling et al., 2010, 2011). In other words, online trust can be vital to the triumph or
catastrophe of online business (Choi and Mai, 2018). For this reason, an examination of the
antecedents of trust is of first importance to online retailers (Zaman et al., 2016).
Accordingly, several underlying factors (e.g. security concern, sites quality, e-promotion,
etc.) have been examined to underpin how online trust is consolidated so that online
purchase could shape the mode of retail industry in different contexts. For example,
transaction security and privacy, e-promotion, incentive programmes and sales promotion
matter in consumers’ trust to the online store (Gurung and Raja, 2016; Akhter, 2014; Rakesh
and Khare, 2012; Ye and Zhang, 2014).
More importantly, the popularity of e-commerce has fostered consumers go online more
than in physical stores (Farber, 2016; Le and Liaw, 2017). This is especially true among the
Generation Y, who composed the largest consumer group in the marketplace (Yigit and
Aksay, 2015). They are defined as energetic, who dedicate their time in sharing and
developing consumer content through social media (Bolton et al., 2013). Generation Y group
possesses stronger purchasing power and formulate new shopping styles (Petra, 2016; Sox
et al., 2014). Their tastes and choices are easily changed with the trends and fashion (Lissitsa
and Kol, 2016), which indicates that their loyalty to a brand is not solid. Thus, researchers,
marketers and service managers have paid close attention to their online behaviours as this
might second-guess how people’s consumption behaviours could be in the near future
(Bolton et al., 2013), and Thailand is not an exception.
Generation Y consumer group in Thailand accounts for 30 per cent of Thai population
(Kittikrairat, 2016) and presents distinct characteristics including tech-savvy, highly social
and private concerned, information driven, highly selective and financially literate (SCB
Economic Intelligence Center, 2014). In fact, a study found that Thai Generation Y groups
save less but spends more as compared to Baby Boomers and Generation X group (IPSOS,
2017). In this case, Generation Y brings about huge business opportunities for marketers in
Thailand (SCB Economic Intelligence Center, 2014). But what Thai online retailers need to
do is how to retain existing Generation Y consumers and encourage them buying more as
well as to understand what triggers them to buy. As a result, it is our intention to study their Generation Y
repurchase intentions by integrating a combination of consumer-oriented approach and consumer online
technological approach (Dennis et al., 2009) with Stimulus-Organism-Response (SOR) model repurchase
from the study of Mehrabian and Russell (1974).
Dennis et al. (2009) clarified that the study on e-consumers’ behaviours primarily schisms intention
into two branches: the consumer-focussed approach and the technology-oriented approach.
The consumer-focussed approach mainly emphasizes on psychological characteristics 55
(Cetină et al., 2012; Hung et al., 2015) such as trust (Thamizhvanan and Xavier, 2013;
Mohmed et al., 2013). The technology-concerned approach inclines to the study of website
specifications of online stores (Zhou et al., 2007; Akram et al., 2018), online payment system
(Kovács and David, 2016), etc. Dennis et al. (2009) stressed the necessity of combining the
two approaches, which exhibit a more comprehensive structure of online consumption.
Hence, it is our assumption that both psychological characteristics and technique
specifications can shape e-consumer behaviour simultaneously, and specifically, such
simultaneous effect can be reflected through the study of online retailing business.
Consequently, a study on Generation Y consumers in Bangkok was conducted with a
focus on their online repurchase intention. The main objective was to reveal the scenario of
how experienced young consumers react to online shopping through an integrated diagram,
in which consumer-oriented approach and technology-oriented approach were embedded in
SOR model. Specifically, consumer-oriented approach consists of online trust and online
promotion while technology-oriented approach includes website appearance and security.
More importantly, mentioned variables were allocated into diagrams of environment
stimulus (S), emotional response (O) and behavioural response (R) in the SOR model. The
specific aims of the study are to:
(1) analyse the extent to which independent variables (website appearance, security and
online promotion) affect mediator (online trust);
(2) test the relationship between mediator (online trust) and dependent variable (online
repurchase intention); and
(3) reveal the mediation effect of online trust.
In addition, this study also aims to identify the constraints that should be overcome by
online retailers in order to successfully attract young consumers and boost the online sales.
The structure of this study is organized accordingly. First, literature review on prior studies
is provided in Section 2 and conceptual framework and research design are illustrated in
Section 3. Next, research findings are explained in Section 4, and discussion and
recommendation are offered in Sections 5 and 6. Limitation of the study is provided in
Section 7.

2. Literature review
2.1 Stimulus-Organism-Response (SOR) model
Originally, SOR model was invented by Mehrabian and Russell (1974), in which
environment stimulus (S) results in emotional response (O) thereby fostering behavioural
response (R). Its importance in retail settings has been articulated by various scholars from
different areas such as decision to buy (Demangeot and Broderick, 2016; Lucia-Palacios
et al., 2016), impulse buying (Chang et al., 2013), service fairness (Namkung and Jang, 2010),
etc. Numerous SOR-based research works in the marketing context confirm the relationship
between emotional response and consumer response in terms of intention, purchase,
consultation and return (Choi et al., 2011; Li et al., 2011). Within the cyber milieu, the
stimulus manifests the factors that determines the performances of online stores (e.g. sites
quality, website security and online promotion); the organism reflects affective and
IJRDM cognitive state of consumers (e.g. feeling trustworthy) and serves as an intermediary
48,1 platform that results in particular behavioural outcomes (e.g. repurchase) (Manganari et al.,
2009; Mummalaneni, 2005).
Recently, various scholars have applied SOR framework to uncover consumer online
behaviour such as Chang and Chen (2008), Eroglu et al. (2001), Kim and Lennon (2013),
Demangeot and Broderick (2016) and Manganari et al. (2009), etc. It was explored in
56 understanding online consumer behaviour, consumers’ emotional and behavioural reactions
to web retailers, consumers’ trust and online purchase intentions, online atmosphere
affecting consumer online behaviour and consumers’ interaction and communication to
online retail stores. These recent studies confirm the inter-relationship of Stimuli-Organism-
Response framework.

2.2 Variables relevant to the study

Website appearance and trust. Website appearance is one key attribute of consumers’
perception towards website quality (Kim and Stoel, 2004). Web appearance refers to the visual
appeals of the website (Chen and Dibb, 2010). In e-commerce milieu, the websites lack “human
touch and sociability” (Shen and Khalifa, 2012, p. 403), and the web seller is invisible; thus,
website interface becomes “online storefront” that formulates consumers’ first impression on
the website (McKnight et al., 2002b). Website appearance can be viewed as self-presentation of
the website (Szymanski and Hise, 2000). Gefen et al. (2003) uttered that the evaluation of a
website is dependent on how consumers observe and deal with cues that conceivably
determine consumers’ trustworthiness. A vivid, attractive and well-structured website implies
that the seller is proactive to develop and maintain the site as well as interact with the
consumers (Liao et al., 2006). Also, the reputation of the web retailer is promoted and
consumers’ trust on the retailer is reinforced (Cyr, 2010; McKnight et al., 2002b). Similarly,
Sztompka (1999) and Attrill (2015) stressed that the self-presentation of websites becomes
critical to evaluate the trustworthiness of online transaction partner, which will likely either
facilitate trust or touch off a sense of distrust. According to the above-mentioned prior studies,
we develop our first assumption:
H1. Website appearance positively affects Gen Y consumers’ online trust.
Security and trust. For e-commerce, security is deemed to be one critical facilitator of trust
(Salimon et al., 2015). The enhancement of trust is particularly affected by the consumers
feeling of security to use the systems provided by the website (Flavián and Guinalíu, 2006).
Roca et al. (2008, p. 99) referred security as the use of advanced technologies that can
prevent the consumers from high risk of “fraud, hacking or phishing”. This technical-based
security mainly attempts to avoid any illegal access of data, minimize misuse of data and
ensure the safe storage of data in the servers or computer (Shalhoub, 2006; Ponirin, 2011).
Many consumers are reluctant to process online transaction (Moftah et al., 2012) especially
when sharing their private information with sellers (Hong and Thong, 2013). E-commerce
cannot advance if there is still a lack of control of information security threats, a
reinforcement of consumer perceptions towards security as well as enhancement of trust
(Choi and Nazareth, 2014). Therefore, a safe and reliable security system is highly desirable.
To correspond to the recent studies that emphasized on consumers’ concern on security, we
developed the following hypothesis:
H2. Security positively affects Gen Y consumers’ online trust.
Online promotion and trust. Promotion is a key marketing tactic to fascinate new
customers, encourage existing customers to repurchase and persuade customers to switch
( Jee and De Run, 2013). Promotions in the form of discounts, coupons, bonus pack, refund
or rebates are wide-scale implementations among retailers (Huang et al., 2014). In online Generation Y
settings, Fortin (2000) pointed out that online business is in the upswing, which demands consumer online
customized promotions. However, consumers might feel discouraged by those repurchase
promotional techniques accompanied by “hidden terms and conditions of inferior
quality” (Malik and Sachdeva, 2015, p. 77); this will reduce consumers trust on online intention
retailers. In addition, heavy price-associated promotions (e.g. discount) that aim at
stimulating brand switching action normally result in a negative effect on consumers’ 57
trust (Omotayo, 2011). Since a direct measurement of how promotion influences consumer
trust in the context of Thailand remains insufficient, we intend to propose the following
hypothesis:
H3. Online promotion negatively affects Generation Y consumers’ online trust.
Consumer online trust and repurchase intention. Trust is viewed as a catalyst for economic
activities and a mechanism to better understand “interpersonal behaviours and
economic exchange” (Pavlou, 2003, p. 102). It facilitates multifaceted interactions
(e.g. economic interaction, social interactions) especially those incubated in an uncertain
circumstance such as online retail business (Das, 2016; Sahney et al., 2013). Enhancing trust
is critical for online retailers because trust-related issues are often embedded into buying
decision process (Ai-Maghrabi and Dennis, 2011; McKnight et al., 2002a). In general,
consumers tend to ignore online shopping if they distrust the website (Chang et al., 2013;
Kim et al., 2011). Thus, trust fundamentally portrays consumer online shopping behaviour
(Clemons et al., 2016) and their confidence in online stores (Wu et al., 2016). Consumers’
personal information is sensitive to both consumers and online retailers; however, it is
difficult to monitor if online retailers will really protect consumers’ private information
(McKnight et al., 2002b). Therefore, if online retailers provide clear statements to assure that
customers’ private information will be well protected, customers are willing to accept the
consequences. Subsequently, consumers will attach to certain online retail stores even
though a certain level of ambiguity and risks are involved (Eastlick et al., 2006).
Various researchers have underscored the importance of trust in e-retail scenario, and
specifically, Xu et al. (2016) identified buying behaviour is a key outcome of trust. Wang
et al. (2009) uncovered that the degree of trust that consumers possess towards online
shopping is positively determined by how much consumers understand online shopping.
Hong and Cha (2013) revealed that the association between performance risk and online
purchase intention was fully mediated through trust, while Chiu et al. (2012) examined how
trust affect consumers online repurchase intention, which uncovered a trade-off between
trust and habit. It can be interpreted that the stronger habit consumers develop, the weaker
impact that trust incubates. Hence, the above-mentioned arguments contributed to the
development of the following hypothesis:
H4. Gen Y consumer’ trust on website positively influence their online repurchase
intention.
Moreover, as online trust serves as a mediator, the researchers aim to reveal the mediation
effect that online trust presents when predicting the influence of each predictor on online
repurchase intention. Thus, the following hypotheses are proposed:
H5a. The influence of website appearance on online repurchase intention is mediated
through trust.
H5b. The impact of security on online repurchase intention is mediated through trust.
H5c. The influence of online promotion on online repurchase intention is mediated
through trust.
IJRDM 3. Conceptual framework and research design
48,1 3.1 Conceptual framework
As can be seen from Figure 1, the SOR model was employed to study Generation Y’s online
repurchase intention in the Thai context. Due to a lack of sufficient studies to investigate
how Thai Generation Y group respond to online shopping, this study intends to fill in
the gap by studying online retail business through SOR model in Thailand. Theoretically,
58 the stimuli that influence internal states of individuals (Chang and Chen, 2008) are some
indications of cyber environment including website appearance, website security and online
promotion. Organism is represented by online trust and serves as the mediator between
stimulus and individual response. Finally, response indicates the outcome derived from
previous functions, which refers to Generation Y consumer online repurchase intention. The
conceptual framework is developed based on aforementioned studies such as Kim and Stoel
(2004), Flavián and Guinalíu (2006), Xu et al. (2016), etc. We assume that the more Thai
Generation Y consumers trust online shopping website, the more they want to do
repurchase activities.

3.2 Questionnaire design and data collection

The researchers adapted the measurement items of online trust from the study of Hong and
Cha (2013), website appearance from the study of Kim and Stoel (2004), security from the
studies of Ranganathan and Ganapathy (2002) and O’Cass and Fenech (2003), online
promotion from the study of Malik and Sachdeva (2015) and online repurchase intention
from the study of Wu et al. (2013). The survey was conducted in Assumption University in
Bangkok from September to November 2017. We collected offline questionnaires that
captured Generation Y consumers’ characteristics including age, gender, frequency of online
purchase and the money they spend each time, etc. Also, their online repurchase intentions
as well as related factors were assessed by a five-point Likert scale (Hus et al., 2014).
Judgemental sampling and convenient sampling were applied to collect data. More
importantly, in order to avoid systematic measurement error, the oral explanation of terms
and questions were given to the respondents prior to answer the questionnaires in order to
make sure all respondents understood the content. Finally, 401 questionnaires were
returned with comprehensive information.

Stimulus Organism Response

Online Environment Cues Cognitive and Affective State Outcome

Website H1
Appearance

H2
Online Repurchase
Online Trust
Intention
Security
H4

H3
Online
Promotion

Figure 1.
Conceptual framework
Source: Developed by Authors (2017)
3.3 Statistical analysis Generation Y
SPSS 24 was utilized to analyse descriptive data and test reliability. Descriptive data were consumer online
used to reveal the profile of the Generation Y group. Reliability test was applied to confirm repurchase
internal consistency by measuring Cronbach’s α. Additionally, factor analysis was
employed to summarize the data by reducing the input around underlying dimensions of intention
constructs (Zikmund, 2003). Furthermore, Amos 24 was run to illustrate measurement
model and structural equation model (SEM) (Byrne, 2016). In this context, the two-stage 59
method (Anderson and Gerbing, 1988) was implemented that CFA should be tested before
modelling the inter-relationship in a structural model (SEM). In addition, the ratio of χ2 to
degree of freedom ( χ2/df ) is an indicator of model fit because the sample size was more than
200 (Chong et al., 2001; Hahn and Kim, 2009). In addition, mediation effect of online trust is
tested and analysed by the following recommendation of Baron and Kenny (1986) and
Kenny (2018).

4. Research findings
4.1 Respondents’ profile
Among 401 respondents, female respondents accounted for 51.4 per cent and male
respondents accounted for 48.6 per cent. About 60.3 per cent of the respondents were aged
between 22 and 25 years old, 23.2 per cent of them were aged between 18 and 21 years old,
15.2 per cent of the respondents were aged between 26 and 29 years old and only 1.3 per cent
of respondents were aged above 29 years old. Specially, about 52.9 per cent of them
purchase online for one to two times per month and 23.9 per cent purchase online for three to
four times per month. In terms of the spending, the top 3 categories are 501–1,000 baht,
which accounted for 30.7 per cent of the responses, 1,001–1,500 baht contributed for
24.9 per cent and 1,501–2,000 baht accounted for 14.2 per cent. Most significantly, the top 3
popular online fashion shopping sites among the respondents are Lazada with 35.4 per cent,
Instagram with 20.2 per cent and Shopee with 16.2 per cent.

4.2 Analysis of measurement model

A χ2 of 350.484 with 160 degrees of freedom ( p ¼ 0.000) was generated for the measurement
model. Also, the values of seven indices including χ2 to the degrees of freedom, RMSEA,
GFI, AGFI, NFI, TLI and CFL fall within the suggested values (as shown in Table II). As a
result, it can be said that there was a good fit between the model and the observed data
(shown in Table I).
Besides, each construct was measured separately through an examination of indicator
loading to prove its statistical significance and an assessment of construct’s reliability and
variance extracted (Chang and Chen, 2008; Byrne, 2016). λ values of all items in the
measurement model exceeded 0.5 ranged from 0.514 to 0.826, and they were significant at
p ¼ 0.001. In addition, as demonstrated in Table II, the range of Cronbach’s α of each
construct was from 0.706 to 0.809, which were greater than the recommended level of 0.7

Recommended value Measurement model

χ /df
2
⩽5.00 (Hair et al., 1998) 1.934
RMSEA ⩽0.08 (Hair et al., 1998) 0.048
GFI ⩾0.90 (Hu and Bentler, 1999) 0.930
AGFI ⩾0.80 (Segars and Grover, 1993) 0.908
NFI ⩾0.90 (Hair et al., 1998) 0.902 Table I.
TLI ⩾0.90 (Hair et al., 1998) 0.927 Measurement model
CFI ⩾0.90 (Gefen et al., 2000) 0.939 fit indices
IJRDM (Nunnally and Bernstein, 1994). The values of composite reliability (Pc) vary from 0.71 to
48,1 0.82, which were beyond the recommended level of 0.7 (Hair et al., 2009). In addition, the
range of the average variance extracted for each variable varied from 0.51 to 0.66,
which surpasses the recommended level of 0.50 (Hair et al., 2009). Thus, convergent validity
was confirmed.
Furthermore, discriminant validity was tested. Table III presents the correlations among
60 constructs, and an acceptable discriminant validity of the measurement model was confirmed.

4.3 Analysis of structural equation model

In the structural model, exogenous constructs include WEA (website appearance), SERU
(security), PROMO (online promotion) and endogenous constructs consist of OTR (online
trust) and RINT (online repurchase intention). A χ2 of 364.076 with 163 degrees of freedom
( p ¼ 0.000) was presented through the structural model. Seven common model fit measures
were used to test the goodness-of-fit (shown in Table IV ). The estimate parameters
presented in Figure 2 are standardized path coefficients. Besides, all path coefficients were
significant at 90, 95 and 99 per cent level (shown in Table V ). Thus, H1–H4 were supported.

4.4 Mediation test

Table VI confirms the mediation test of online trust. Online trust fully mediates the
relationship between security and online repurchase intention while it partially mediates the
influence of website appearance and online promotion on online repurchase intention.

5. Discussion
The research findings reveal that website appearance, security and online promotion affect
online trust thereby triggering Generation Y consumers repurchase intention. In this
section, discussion mainly emphasizes on main phenomenon derived from hypotheses
testing since all hypotheses were supported.

Construct Composite reliability Average variance extracted Cronbach’s α

Website appearance 0.710 0.517 0.706

Online trust 0.780 0.667 0.778
Security 0.813 0.522 0.809
Online promotion 0.792 0.560 0.788
Table II. Online repurchase intention 0.774 0.534 0.773
Reliability test and Notes: Criteria: Cronbach’s αW 0.70, composite reliability (Pc)W0.70, average variance extracted
convergent validity (AVE)W0.50

Online Website Online Online repurchase

trust appearance Security promotion intention

Online trust 0.816

Website appearance 0.399 0.719
Security 0.801 0.386 0.722
Online promotion 0.272 0.393 0.369 0.748
Table III. Online repurchase
Discriminant validity intention 0.382 0.542 0.402 0.497 0.731
First, Generation Y consumers online repurchase intention is positively affected by the Generation Y
extent to which they trust the website. This finding is consistent with prior studies of Wu consumer online
et al. (2016). At this point, we should take the trust of antecedents into account. repurchase
Security and website appearance positively influence online trust. Markedly, security
presents the strongest impact on enhancing Generation Y consumers’ trust towards sites. In intention
this study, our respondents feel secure with the security feature, protection of privacy,
transaction system and payment systems of online shops. The secured system makes 61
consumers feel protected against threats or malware; their shopping experience encounter
low risk. Thus, consumers trust is accumulated and strengthened.
In addition, effectual website appeal including design, content organization and
innovative feature strengthen visitors’ trust towards online retailers, which supports the
argumentation of Shen and Khalifa (2012) who outlined the importance of special and
effective features in triggering online purchase. Innovative features exhibit the strongest
impact on trust (Blackburn, 2011; Yigit and Aksay, 2015). In other words, innovative
features are considered as motivational forces that enhance Thai Generation Y consumers’
trust thereby increasing repurchase intentions towards online shopping sites.

Recommended value Structural model

χ /df
2
⩽5.00 (Hair et al., 1998) 2.234
RMSEA ⩽0.08 (Hair et al., 1998) 0.056
GFI ⩾0.90 (Hu and Bentler, 1999) 0.917
AGFI ⩾0.80 (Segars and Grover, 1993) 0.894
NFI ⩾0.90 (Hair et al., 1998) 0.902 Table IV.
TLI ⩾0.90 (Hair et al., 1998) 0.904 Fit indices for
CFI ⩾0.90 (Gefen et al., 2000) 0.917 structural model

e1 e2 e3 e4
e5 e6 e7 e8 e9 e10

se1 se2 se3 se4

0.77 0.75 wd1 wd2 wd3 wd4 wd5 wd6
0.70 0.66
0.53 0.44 0.57 0.55
0.60 0.54
SERU
WEA
0.37

0.79
e14 T1 0.13 e22
e21
0.69 0.39 ORI1 e18
0.70
e13 T2 0.74
0.39
0.31 0.73
0.69 OTR RINT ORI2 e19
e12 T3 –0.04
0.62 0.71
PROMO ORI3 e20
e11 T4
0.68 0.75
0.81

prom1 prom2 prom3

Figure 2.
Structural equation
model analysis
e17 e16 e15
IJRDM Moreover, online promotion holds a significantly negative relationship with trust, and this
48,1 finding corresponds with the study of Omotayo (2011). This indicates that the more
promotion that online retailers launch, the lower level of trust exists among young
consumers. This means that Generation Y consumers tend to question the quality of product
or service which are heavily promoted; they feel discouraged when promotional campaigns
are accompanied with hidden terms and conditions. However, at present leading
62 Thai retailers still implement sales promotion strategies in offline settings because they feel
that consumers still trust physical stores. This may be because in the Thai context, online
retail business is still in its early stage as many people prefer to touch, see and test the
products. Therefore, trust is accumulated easily in physical shopping environment rather
than in cyber world. Accordingly, it is not questionable that less trust will be accrued within
online circumstance.
Finally, the mediation effect of online trust is confirmed. Without trust, the relationship
between security and online repurchase intention does not exist, which implies that the
essence of security is trust. In addition, the influences of promotion and website appearance
on online repurchase intention are partially mediated by online trust. In this context, it can
be said that apart from trust, other factors such as prompt reply from online sellers,
recommendations from others and reviewer comments could also affect consumers
repurchase intentions when shopping online.

Hypothesis Estimate t-value p-value Conclusion

H1: Website appearance→Online trust 0.133 2.165 ** Supported

Table V. H2: Security→Online trust 0.786 9.757 *** Supported
Hypothesis report and H3: Online promotion→Online trust −0.043 −1.211 * Supported
structural equation H4: Online trust→Online repurchase intention 0.315 4.763 *** Supported
model estimate Notes: *po 0.10; **p o0.05; ***p o0.001

Path Coefficient SE t-statistics p-value

a path model1
WEA→OTR model2 0.3971 0.0566 7.0809 ***
SERU→OTR model3 0.8074 0.0175 11.1292 ***
PROMO→ OTR 0.2235 0.0364 6.1381 ***
b path model1
OTR→RINTmodel2 0.1889 0.0576 3.2809 ***
OTR→RINTmodel3 0.2325 0.1407 1.6525 *
OTR→RINT 0.1752 0.0556 3.1525 ***
c path model1
WEA→RINT model2 0.4133 0.0658 6.2776 ***
SERU→RINT model3 0.2357 0.0493 4.7796 ***
PROMO→RINT 0.3172 0.0409 7.1610 ***
c′ path model1
WEA→RINT model2 0.3384 0.0690 4.9070 ***
SERU→RINT model3 0.0480 0.1238 0.3874 0.6987
Table VI. PROMO→RINT 0.2780 0.0423 6.5752 ***
Mediation effect of Notes: Model 1 represents H5a, Model 2 represents H5b and Model 3 represents H5c. *p⩽0.1; **p⩽0.05;
online trust ***p⩽0.01
6. Conclusion Generation Y
Our study highlights significant inter-relationships between online environmental cues, consumer online
cognitive and affective states and outcome within SOR framework in e-commerce context in repurchase
Thailand. It also provides insightful research findings for academicians, online retailers and
marketers. From theoretical perspective, the discoveries regarding SOR model and trust intention
issues could be contributed to the further research in cyber settings, and particularly it adds
values to Thai researchers. Also, from managerial perspective, the findings would help 63
online retailers to understand Generation Y consumers more and improve their business
strategies in order to strengthen trust. As a result, Generation Y consumers online
repurchase activities will be enhanced.

6.1 Theoretical implications

This study contributes to the existing literature in the following ways. First, the study
provides empirical and updated findings for SOR model in e-commerce. Second, the study
highlights the role of trust in strengthening repurchase intention, which confirms the
importance of trust in online retail business. Also, it addresses the relationship between
website appearance, security and online promotion and trust. This provides useful
information for online retailers to reinforce trust in buyer–seller milieu. Fourth, the study
reveals the online shopping behaviour of Thai Generation Y consumers; hence, Thai online
retailers should come up with proper marketing strategies accordingly.

6.2 Managerial implications

As far as security is concerned, policy makers should consummate institutional settings to
prevent illegal behaviours such as unauthorized use of private information, etc. From online
retailer’s perspective, security issue and private data should be protected. For example,
consumers’ personal data should not be shared or even sold to other parties. Generating
strong password strengthen and encrypting the online shop are two useful implementations
to protect consumers’ data.
In terms of website appearance, simplicity and consistency are first suggested for content
organization. As discussed by Helander and Khalid, many web designers emphasize on
technological attributes rather than user’s needs, sophisticated web design is desirable.
Effective web design with need-based features can enhance the interactivity of the website
thereby stimulating online purchase (Shen and Khalifa, 2012). Second, consumer–merchant
relationship should be clearly presented, and relevant links should be displayed and easily
found to direct consumers to sales representative. Third, the movement of pictures, good
quality of video with clear and attractive content and the presentation of products
accompanied by visual verisimilitude and sound effect are recommended in order to attract
Generation Y and stimulate decision-making process.
As for promotion, since Generation Y accesses internet frequently and seek for
information actively, promotion campaign should be accompanied by “Wow” factors to
surprise them. Free samples or free subscription should be given as they entice young
consumers to deepen their understanding of novel products or service as well as firms.
However, if negative experience of new product is found, marketers and producers should
take the lead in pre-market correction. This will not only improve the credibility and
trustworthiness of relevant parties but also generates a transparency that could strengthen
the level of trust among young consumers. In addition, technology-related promotion is
another way that accumulates trust. For Generation Y consumers, promotion might not only
be about discounts and coupons, they can play on certain tactics via the internet. Generation
Y consumers generally possess an insatiable curiosity about novel and unknown things.
This drives them to explore more interesting things online. Therefore, they might decide to
purchase or repurchase the products or service as long as their curiosity is satisfied.
IJRDM Last, to strengthen the cyberspace trust, mainstream actors (e.g. firms, online platform,
48,1 relevant regulatory agencies) might utilize advanced technologies such as artificial
intelligence and big data analysis to assess the credibility of users, devices, applications
and behaviours. This likely consolidates the infrastructure of trust thereby enhancing
consumers’ confidence in online consumption.

64 7. Limitations
As all other studies, this study presents several limitations. Foremost, our empirical data are
limited, thus findings are generated from a limited number of Generation Y consumers in
Bangkok only. As a result, the limited sample and findings cannot represent the Generation
Y consumers’ online shopping behaviour in Thailand. Future study should emphasize on
larger and diverse regional samples. Second, our study limits itself to survey study
especially from buyer perspective; thus, conducting in-depth interview with both buyers
and online sellers in the future study tends to generate more comprehensive and updating
information about online consumption phenomenon in buyer–seller context.

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Bing Zhu can be contacted at: [email protected]

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