Antecedents and consequences
of online buying behavior:
a mediation study
Suhail Ahmad Bhat, Sheikh Basharul Islam and Umer Mushtaq Lone
Department of Management Studies, University of Kashmir, Srinagar, India
Abstract
Purpose – The study is aimed to identify the determinants of online buying behavior and their associations
with the consequences of online buying behavior. The study adopted an e-loyalty framework and investigated
causal links among functionality, usability, trust, commitment and loyalty. In addition, the study also
attempted to investigate the mediating role of trust and commitment between online buying determinants and
online purchasing outcomes. The demographic variables of age, gender and income are used as control
variables.
Design/methodology/approach – An online questionnaire survey was conducted on Internet users by
adopting purposive sampling technique. Confirmatory factor analysis (CFA) was employed for measurement
development, SEM was used for testing causal links, and percentile bootstrap with 95% confidence interval
was used for mediation analysis.
Findings – Significant positive relationships were found among functionality, usability, trust, commitment
and loyalty. Trust was found to fully mediate the effect of functionality and usability on loyalty. It was also
found that commitment fully mediates the effect of functionality on loyalty.
Research limitations/implications – However, caution is advised while generalizing results of this study.
The study was conducted on online retailing only. The authors recommend future studies to extend the
research in other e-commerce sectors and also to perform a comparative study between online and offline
retailing.
Practical implications – This study provides some practical implications to website developers in designing
a web page that caters the functionality and usability aspects in understanding e-loyalty formation process so
that appropriate marketing strategies and tactics can be established to accommodate customized loyalty of
each customer.
Originality/value – The study demonstrates the customer loyalty formation process in online retailing.
Scanty literature has witnessed mediating role of trust and commitment in the relationships among
functionality, usability and loyalty along with age, gender and monthly family income as controls in Indian
sub-continent.
Keywords Functionality, Usability, Trust, Commitment, Loyalty
Paper type Research paper
1. Introduction
Online business has shown tremendous growth across the world in the last few decades.
Globally, online retail sales during 2017 were observed to be $2.38 trillion, and it has been
estimated to hit $6.54 trillion by 2023 (eMarketer, 2019). Specifically, the Indian online retail
sales have been estimated to be $120 billion in terms of the gross merchandise value (GMV) by
the end of 2025 (IBEF, 2021). Further, it has also been estimated that the total number of
online shoppers will increase to 175 million, and about 33% of the customers will drive
two-thirds of their total shopping via the Internet (Google-A.T. Kearney, 2016). This prolific
growth in the online retail industry in India is attributed to some key factors such as
high-level smartphone usage, high-speed Internet, IT innovations, increasing purchasing
power and an incredible increase in Internet penetration (Raman, 2019). The young
population of India is going to propel the Indian e-commerce market to exceed the e-commerce
market of the USA. As a result, India will take the second-largest position in the global e-
commerce industry by 2034. Despite tremendous growth of online purchasing, voluminous
consumers signify their dissatisfaction with online shopping experiences (Luo et al., 2012;
SAJBS
12,1
54
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/2398-628X.htm
Received 3 July 2020
Revised 29 November 2020
10 February 2021
14 March 2021
7 April 2021
Accepted 11 April 2021
South Asian Journal of Business
Studies
Vol. 12 No. 1, 2023
pp. 54-78
© Emerald Publishing Limited
2398-628X
DOI 10.1108/SAJBS-07-2020-0223