Trust and product as moderators in online shopping behavior : evidence from India

Purpose - The present study is aimed at examining the antecedents of online shopping user behavior and customer satisfaction. More specifically, (1) the effect of social influence, variety seeking behavior, advertising and convenience on user behavior, and (2) the effect of user behavior on customer satisfaction are examined. Design/methodology/approach - A conceptual model is developed and tested after verifying the psychometric properties of the survey instrument. Data were collected from 556 respondents from three major cities (Hyderabad, Chennai and Bangalore) in the southern part of India using structured instrument. Hierarchical regression is performed. Measurement model was checked using structural equation modeling (Lisrel package). Findings - The results reveal that (1) social influence, (2) variety seeking, (3) advertising, (4) convenience, (5) trust and (6) product factors were positively related to online user behavior. Results also show that user behavior is significantly and positively related to customer satisfaction. The hierarchical regression results also showed moderating effects of (1) trust in the relationship between social influence, variety seeking and user behavior, and (2) product factors in the relationship between advertising, convenience and user behavior. Finally, results suggest that user behavior is partially mediating the relationship between trust and customer satisfaction, i.e. trust has both direct and indirect effect on customer satisfaction. Research limitations/implications - As with any survey-based research, the present study suffers from the problems associated with self-report measures viz., common method bias and social desirability bias. However, the authors attempted to minimize these limitations by following appropriate statistical techniques. Practical implications - This study contributes to both practicing managers and the literature on advertising. The study suggests that trust and product play a major role in strengthening the relationship between antecedents and user behavior. Originality/value - This study provides new insights about the importance of gaining trust in influencing consumer behavior. The conceptual model the authors developed is novel in the sense not many studies are available in India to empirically examine the moderating relationships of trust and product in consumer behavior.