Online consumer retention: contingent effects of online shopping habit and online shopping experience

Received: 28 January 2005 Revised: 18 August 2005 2nd Revision: 12 June 2006 3rd Revision: 6 January 2007 4th Revision: 14 June 2007 Accepted: 20 September 2007 Abstract In this study, we further develop the information systems continuance model in the context of online shopping, using a contingency theory that accounts for the roles of online shopping habit and online shopping experience. Specifically, we argue and empirically demonstrate that although conceptually distinct, online shopping habit and online shopping experience have similar effects on repurchase intention. They both have positive mediated effects through satisfaction and moderate the relationship between satisfaction and online repurchase intention. The results of a survey study involving 122 online customers provide strong support for our research model. We also identify after-sale service, transaction efficiency, security, convenience, and cost savings as important online shopping usefulness drivers. Theoretical and practical implications include establishing a contingency theory to more fully explain online customer retention as well as guidelines for development of customer relationship management initiatives. European Journal of Information Systems (2007) 16, 780–792. doi:10.1057/palgrave.ejis.3000711