Measuring Factors that Influence the Success of Internet Commerce

Abstract

E fforts to develop measures of Internet commerce success have been hampered by (1) the rapid development and use of Internet technologies and (2) the lack of conceptual bases necessary to develop success measures. In a recent study, Keeney (1999) proposed two sets of variables labeled as means objectives and fundamental objectives that influence Internet shopping. Means objectives, he argues, help businesses achieve what is important for their customersfundamental objectives. Based on Keeney's work, this paper describes the development of two instruments that together measure the factors that influence Internet commerce success. One instrument measures the means objectives that influence online purchase (e.g., Internet vendor trust) and the other measures the fundamental objectives that customers perceive to be important for Internet commerce (e.g., Internet product value). In phase one of the instrument development process, we generated 125 items for means and fundamental objectives. Using a sample of 199 responses by individuals with Internet shopping experience, these constructs were examined for reliability and validity. The Phase 1 results suggested a 4-factor, 21-item instrument to measure means objectives and a 4-factor, 17-item instrument to measure fundamental objectives. In Phase 2 of the instrument development process, we gathered a sample of 421 responses to further explore the 2 instruments. With minor modifications, the Phase 2 data support the 2 models. The Phase 2 results suggest a 5-factor, 21-item instrument that measures means objectives in terms of Internet product choice, online payment, Internet vendor trust, shopping travel, and Internet shipping errors. Results also suggest a 4-factor, 16-item instrument that measures fundamental objectives in terms of Internet shopping convenience, Internet ecology, Internet customer relation, and Internet product value. Evidence of reliability and discriminant, construct, and content validity is presented for the hypothesized measurement models. The paper concludes with discussions on the usefulness of these measures and future research ideas.

Tailoring new websites to appeal to those most likely to shop online

“…The features and functions to include are suggested by Torkzadeh and Dhillon (2002) and the extensive work of Rogers (1995). Following up on the work of Keeney (1999), Torkzadeh and Dhillon (2002) developed the proposition that consumer values serve as referents by which shoppers evaluate a website.…”

“…Following up on the work of Keeney (1999), Torkzadeh and Dhillon (2002) developed the proposition that consumer values serve as referents by which shoppers evaluate a website. Their model identifies values as either 'Fundamental objectives' (i.e.…”

“…First, it is not assumed that features representing the same dimension in the Torkzadeh and Dhillon (2002) or in Rogers' perspective will necessarily correlate highly or form a common dimension. For example, within the Torkzadeh and Dhillon (2002) 'Product value' category or within Rogers' (1995)) 'comparative advantage' would fall 'high quality goods' and 'low prices.' However, in the eyes of shoppers, high quality and low prices often do not co-exist in the same product (e.g.…”

The development of initial trust in an online company by new customers

“…A primary reason for that is their lack of trust in companies that they only experience through the web medium [34]. Trust in the webbased vendor is one of the critical factors of success in online commerce [86]. The virtual nature of the web medium challenges traditional understanding of customer trust and calls for new and more appropriate models.…”

How Questions and Answers Shape Online Marketplaces: The Case of Amazon Answer

“…In that regard, Torkzadeh and Dhillon show that one of the key elements to create value in consumers' eyes is to build their trust [9], which has been shown to have a strong impact to consumers' satisfaction and purchase intention [10]. Several avenues are suggested in establishing the trust.…”