Online Store Service Convenience, Customer Satisfaction and Behavioural Intentions: A Focus on Utilitarian Oriented Shoppers

The paper investigates, using transaction cost theory, the concept of service convenience and its influence on utilitarian customer satisfaction and behavioural intentions to repurchase from an online store. Data used in the analysis was collected from utilitarian oriented online shoppers from Gauteng, South Africa using a structured questionnaire. According to the findings search, evaluation, order and possession convenience were identified as unique,reliable and valid dimensions of service convenience in the context of online shopping. The four dimensions were all found to exert significant direct influence on utilitarian customers’ level of satisfaction as well as on intentions to repurchase from specific online stores. The findings further showed that service convenience can be conceptualised as a second order factor made up of all the identified four dimensions and that when conceptualised this way the explanatory power of service convenience on both customersatisfaction and repurchase intentions is greatly enhanced. Additionally, the results show thatoverall satisfaction on the relationship between service convenience and behavioural intentions to repurchase from an online store plays a significant mediating role when service convenience is considered at the dimensional level but not at the overall level. The findings in this study validate the transaction cost theory in the context of online shopping and contribute to a better understanding of the concept of service convenience and its influence on utilitarian oriented online customers. The findings have wide managerial implications on use of convenience as a source of value creation for online store managers and these have been outlined in the paper.