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    E-S-Qual

    APPLYING E-S-QUAL SCALE TO ASSESS THE

    EFFECTS OF E-SERVICE QUALITY ON

    E-LOYALTY WITH E-SATISFACTION AND

    PERCEIVED VALUE AS MEDIATORS

    Chia-Shing Chen

    Prof. Hao-Erl Yang)

    Thesis for Master of Business Administration

    Department of Business Management

    Tatung University

    July 2008

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    APPLYING E-S-QUAL SCALE TO ASSESS THE

    EFFECTS OF E-SERVICE QUALITY ON E-LOYALTY

    WITH E-SATISFACTION AND PERCEIVED VALUEAS MEDIATORS

    E-S-Qual

    A THESIS SUBMITTED TO

    THE FACULTY OF THE GRADUATE SCHOOL OF

    MANAGEMENT OF

    TATUNG UNIVERSITY

    IN PARTIAL FULFILLMENT OF THE REQUIREMENT

    FOR

    THE DEGREE OF MASTER

    OF BUSINESS ADMINISTRATION

    BY

    Chia-Shing Chen

    JULY 2008

    TAIPEI, TAIWAN, REPUBLIC OF CHINA

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    E-S-Qual

    (SEM)

    (SEM) AMOS 6.0

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    ABSTRACT

    In order to establish a comprehensive and effective service quality scale in an

    online loyalty model, this study incorporated both utilitarian and hedonic e-service quality

    elements. Hence, this study adds hedonic dimension to E-S-Qual scale to investigate

    e-service quality effect on e-loyalty.

    Next, we used confirmatory factor analysis (CFA) to analyze a structural equation

    model of e-service qualitye-loyalty. In addition, we examined the model and estimated

    the effects of all predictors on e-loyalty in the model. This investigation took consumers

    with online shopping experience as the subjects of the study. We collected data through

    online questionnaire, and adopted AMOS 6.0 to analyze a structural equation model and

    to estimate relationships among all dimensions.

    The results indicate that positive paths exist on the chain of e-services quality and

    on-line satisfaction and on-line loyalty. On the other hand, e-service quality shows a

    significant positive impact on customer perceived value. Finally, consumer loyalty was

    found to be most significantly affected by e-service quality. For managers, e-loyalty is the

    key factor essential to the website success.

    Keywords: E-service quality; Perceived value; On-line satisfaction; On-line loyalty

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    ACKNOWLEDGEMENTS

    This student would like to express his greater gratitude to all those who have helped

    directly and indirectly in completing his thesis.

    To begin with, this student would like to appreciate his advisor, Prof. Hao-Erl Yang

    , for his guidance and encouragement during the entire period of this research.

    Besides, his advisor also teaches him to write a paper in the right way and right direction.

    Secondly, appreciative acknowledgment is given to his thesis committees

    members, Prof. Kun-Huang Yehand Prof. Chia-Chun Tung, for giving

    his many valuable suggestions and comments about his thesis.

    Thirdly, this student would tender his gratitude to his loving family, his father and

    mother, Tien-Fu Chenand Li-Chuan Chang, his sister, Chin-Nuan

    Chen, Chin-Ying Chen, and his brother, Chun-Hao Chen

    , and his girl friend Pei-Yun Hsu, for their everlasting love and emotional

    support. Without their encouragement and help, this student cannot complete this thesis.

    Most important of all, special acknowledgment must be given to hi friend,

    Ching-Ti Pan, Pei-Ju Tung, Chan Hsueh, Wen-Hui Huang

    , Sin-Lun Tsai, Chung-Ting Wang, Chun-Yao Lin

    , Chin -Yi Huang, Shih-Min Wang, Chun-Wei Li

    , Chia-Hao Kuo, and all of his dear classmates for helping his complete this

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    research and obtain a rich graduate school life. What she wants to tell them is she will not

    forget the life in Tatung University, where they shared and supported each other. For all

    the people mentioned above, thank you again.

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    TABLE OF CONTENTS

    ABSTRACT IN CHINESE ......................................................................... iii

    ABSTRACT IN ENGLISH..........................................................................iv

    ACKNOWLEDGEMENTS ..........................................................................v

    TABLE OF CONTENTS............................................................................ vii

    LIST OF ILLUSTRATION..........................................................................ix

    LIST OF TABLE............................................................................................x

    CHAPTER 1 ...................................................................................................1

    INTRODUCTION..........................................................................................1

    1.1 Research Background and Motivation ..............................................................1

    1.2 Research Objective ..............................................................................................3

    1.3 Research Procedure .............................................................................................4

    CHAPTER 2 ...................................................................................................5

    LITERATURE REVIEW .............................................................................5

    2.1 E-services ..............................................................................................................5

    2.2 E-service Quality..................................................................................................6

    2.3 Perceived Value ..................................................................................................12

    2.4 On-line Satisfaction............................................................................................14

    2.5 On-line Loyalty...................................................................................................15

    CHAPTER 3 .................................................................................................17

    RESEARCH METHODOLOGY...............................................................17

    3.1 Research Framework.........................................................................................17

    3.2 Research Hypotheses .........................................................................................18

    3.3 Operational Definitions of Variables ...............................................................20

    3.4 Questionnaire design .........................................................................................22

    3.5 Sampling Method ...............................................................................................26

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    3.6 Analysis Method.................................................................................................26

    CHAPTER 4 .................................................................................................29

    DATA ANALYSIS.......................................................................................29

    4.1 Description of Data ............................................................................................29

    4.2 Structural Equation Modeling..........................................................................30

    CHAPTER 5 .................................................................................................40

    CONCLUSIONS AND SUGGESTIONS...................................................40

    5.1 Conclusions.........................................................................................................40

    5.2 Managerial Implications ...................................................................................42

    5.3 Research Limitation and Future Directions of Research...............................44

    BIBLIOGRAPHY........................................................................................46

    Vita ................................................................................................................52

    APPENDIX...................................................................................................53

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    ILLUSTRATIONS

    Figures Page

    1. Research Procedure .......................................................................................................4

    2. Research Framework...................................................................................................18

    3. Research Model ............................................................................................................32

    4. Paths of Research Model .............................................................................................37

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    TABLES

    Table Page

    1. Operational Definitions of Variables ..........................................................................21

    2. Measurement Items of Perceived Value .....................................................................23

    3. Measurement Items of E-service Quality...................................................................24

    4. Measurement Items of On-line Satisfaction ..............................................................25

    5. Measurement Items of On-line Loyalty .....................................................................26

    6. The Sample Characteristics ........................................................................................29

    7. Eliminated Higher Variables of M.I. ..........................................................................31

    8. The Tests of Reliability of The Constructs.................................................................33

    9. Discriminant Validity...................................................................................................33

    10. Results From Test on Validity ...................................................................................35

    11. Goodness-of-Fit Measures .........................................................................................36

    12. Hypothesis Test Results .............................................................................................37

    13. Examining Effects on On-line Loyalty.....................................................................38

    14. Mediation Effect.........................................................................................................38

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    CHAPTER 1

    INTRODUCTION

    1.1 Research Background and Motivation

    As the Internet flourishing, many traditional retailers believe that the Internet is a

    new marketing channel. In daily business activities, the information and communication

    technologies are rapid expansion to become the most important long-term trend in the

    business world (Rust, 2001). To face this trend, more and more companies gradually

    through the Internet to engage in commercial activities. At present, there are many

    businesses through the Internet to provide products and services to consumers.

    According to The trend of Taiwan's electronic store development in 2007

    reported by the Market Intelligence Center (MIC), Taiwans market scale of online

    shopping reached NT $252.9 billion in 2008, of which B2C about NT $138.4 billion, C2C

    about NT $114.5 billion (Electronic Commerce Times, 2008). Accordingly, especially for

    the provision of products and services forecasted a large growth potential via the Internet

    (Evanschitzky et al., 2004). How this potential can be exploited sufficiently depends

    largely on the Internet retailers ability to meet customers expectations in the virtual

    shopping environment (Zeithaml et al., 2002). For consumers shopping on the Internet,

    for online retailers to provide service quality is a very important thing. In addition,

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    measuring of e-service quality has become a very important issue to e-retailers who want

    to retain their customers.

    According to Meuter et al. (2000), it is notable that the number of online customers

    with dissatisfied experience such as service breakdowns, lost orders, or inadequate

    complaint handling. These unsatisfying service encounters cause annual Web sales losses

    of several billion dollars per year (Rust and Lemon, 2001). In view of this, that the

    e-retails developed new sales channel at the same time is the best way to understand what

    customers real demand in the Internet shopping? And how do consumers assess e-service

    quality.

    Therefore, management of e-service quality for online retailers became an

    important challenge. Currently, the e-service quality scale mainly focuses on

    goal-oriented shopping behavior, but there has been no further discussion on the

    enjoyment quality dimensions of e-service quality. These scales do not fully include all of

    consumers quality evaluation dimensions. In order to establish a comprehensive and

    effective service quality management, this study incorporates both utilitarian and hedonic

    e-service quality elements and intends to provide a sound and comprehensive conceptual

    framework to analyze the overall of e-service quality.

    Finally, this study uses utilitarian and hedonic dimensions to measure e-service

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    quality. Besides, we want to know how consumers to assess the e-service quality.

    E-retailers can effectively provide sound e-service quality to consumers to achieve their

    perception well.

    In addition, this study hopes to provide a guide to those interested in online

    shopping in the future. Therefore, enhancing e-service quality standards can increase

    online satisfaction, perceived value and loyalty. We also hope that the development of

    e-services quality will have a strong benefit in the future.

    This investigation took consumers with shopping experience on the Internet as the

    subjects of study. They have to within transaction framework of the B to C (business to

    consumer). We collect data through the online questionnaire, and adopt AMOS 6.0 to

    analyze a structural equation modeling (SEM) and to find out the relationship among all

    dimensions.

    1.2 Research Objective

    The objectives of this study are as follows:

    1. To explore the effects of e-service quality on on-line satisfaction and customer

    perceived value.

    2. To explore the effects of on-line satisfaction and customer perceived value on on-line

    loyalty.

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    3. To investigate the mediating effect of on-line satisfaction and perceived value in the

    model.

    1.3 Research Procedure

    According to the research motives and objectives mentioned above, the research

    procedure is presented in Figure 1.

    Identifying Research Motivation and Objectives

    Collecting and Exploring Related Literature

    Establishing Research Scope and Framework

    Proposing Research Hypotheses Questionnaire Design

    Pretesting and Revising Questionnaire

    Data collection and Analysis

    Conclusions and Suggestions

    Figure 1. Research Procedure

    Source: This study.

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    CHAPTER 2

    LITERATURE REVIEW

    The objective of this chapter is to review past researches in order to know the

    issues of this study. Therefore, we will collect literature on online shopping and service

    quality. First of all, we defined e-service to understand about buying and selling of online

    transaction activity. Next, we introduced e-services quality. Thirdly, we made a

    description of customer perceived value. Fourthly, we argued that On-line Satisfaction.

    Finally, we stated that On-line Loyalty.

    2.1 E-services

    A review of the relevant literature reveals that there are various approaches to

    conceptualize e-services. Rust and Lemon (2001) describe e-service as providing

    consumers have a superior experience to respect the interactive flow of information.

    Grnroos et al. (2000) provide a more different definition in proposing the so-called

    NetOffer model, according to which online services can be divided into a functional

    dimension (what is delivered in terms of service outcome) and a technical dimension

    (how is it delivered in term of service process). Yet, to fully capture all dimensions of an

    e-service the functional/technical approach has to be expandedby taking into account an

    additional dimension comprising all aspects that take place before the actual delivery of

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    the service. Consequently, we suggest that a complete definition should cover all cues and

    encounters that occur before, during and after the electronic service delivery (Bauer et al.,

    2005; Parasuraman et al., 2005; Zeithaml et al., 2002).

    2.2 E-service Quality

    As electronic services have different ways of conceptualizing, in the previous study

    efforts to measure the e-service quality will have different approaches and outcomes.

    Therefore, measure e-service quality is difficult work. This study will introduce

    dimensions and elements of e-service quality, after conducting to measure of e-service

    quality. The following will discuss with e-service quality to divide into utilitarian and

    hedonic of e-service quality.

    2.2.1 Utilitarian E-service Quality:

    Juran and Gryna (1970) suggest four quality dimensions: capability (does the

    product perform as expected), availability (is the product usable when needed), reliability

    (is the product free from failure) and maintainability (is the product easy to repair when

    broken). These quality dimensions of products and services are reflected in many of the

    following quality scales. Therefore they may serve as helpful starting points for

    substantiating a quality concept for e-services.

    Barnes and Vidgen (2001) draw upon the SERVQUAL model in order to generate

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    a pool of quality items. Based on an analysis in the field of online book trade, the authors

    extract five key dimensions each of which encompasses two subdimensions: tangibles

    (aesthetics, navigation), reliability (reliability, competence), responsiveness

    (responsiveness, access), assurance (credibility, security) and empathy (communication,

    understanding the individual).

    Van Riel et al. (2001) propose a classification of service components which is

    based on Grnroos et al. (2000) suggested that technical/functional quality framework

    and comprises the following aspects: core services, facilitating services, supporting

    services, complementary services, and user interface.

    Wolfinbarger and Gilly (2003) examine the dimensionality of service quality in

    Internet retailing. By means of exploratory and confirmatory factor analysis four quality

    dimensions emerge: fulfillment/reliability, Web site design, customer service and

    security/privacy.

    Based on the explorative study by Zeithaml et al. (2002), Parasuraman et al. (2005)

    provide the most comprehensive work on e-service quality so far. They empirically test a

    multiple item scale (E-S-QUAL) for assessing service quality of online shopping

    providers. Their findings correspond to the insights of their explorative study: two

    different scales are necessary to measure electronic service quality.

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    The E-S-QUAL scale addresses core service quality aspects and consists of four

    quality dimensions (efficiency, fulfillment, system availability and privacy). Additionally,

    the E-RecS-QUAL scale is proposed to be relevant when customers face nonroutine

    encounters during the online-shopping process which are related to service recovery like

    product returns, dealing with problems, etc. (Parasuraman et al., 2005). The

    E-RecS-QUAL scale is composed of three quality dimensions (responsiveness,

    compensation and contact).

    The E-core Service Quality Scale (E-S-QUAL) includes 4 constructs: (1)

    Efficiency (2) Fulfillment (3) System availability and (4) Privacy.

    (1) Efficiency: The ease and speed of accessing and using the site. Davis (1989) believed

    customers will assess a website according to its influences on how they can use the

    website to efficiently complete the tasks.

    (2) Fulfillment: The extent to which the website promise about order delivery and item

    availability are fulfilled. Wolfinbarger and Gilly (2002) discovered that fulfillment and

    reliability are the most important predictive factors of customer satisfaction and quality,

    and the second important predictive factors of customer loyalty and repurchase.

    (3) System Availability: The correct technical functioning of the site. In system design

    quality, systematic hyperlinks, customizable search functions, quick link to other websites

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    and easy server debug functions should be provided (Liu and Arnett, 2000).

    (4) Privacy: The degree to which the site is safe and protects consumer information.

    Privacy and security are the key factors in evaluating online services (Culnan, 1999).

    Privacy is the protection of personal information from sharing with other websites of data

    collected from the website and protection of anonymity. Security means that customers

    are safe from frauds and risks of financial damage while using credit cards and revealing

    other financial information on the website (Friedman et al., 2000).

    2.2.2 Hedonic E-service Quality:

    Although Parasuraman et al. (2005) stated that other experiential aspects such as

    fun or pleasure do not fall within the conceptual domain of service quality because such

    hedonic aspects are distinct benefits that may not be relevant in all contexts or to all

    customers (p. 229). In complex e-service quality scale development process, some

    authors still expressed concerns about the hedonic e-service quality (Bauer et al., 2006).

    In the previous study, the eTailQ (Wolfinbarger and Gilly, 2003) and E-S-QUAL both

    lack of items referring to hedonic service quality elements.

    However, Babin et al. (1994, 2005) pointed that if shopping trips are assessed

    solely on the utilitarian benefits of products or services attained, the numerous intangible

    and emotional aspects related to a shopping experience are excluded. This idea is

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    supported by implications from environmental psychology indicating that especially the

    tangible/physical environment generates more emotional than cognitive customer

    reactions during the service experience (Bitner, 1990).

    For example Wakefield and Blodgett (1999) extend traditional service quality

    research by empirically demonstrating that the design of the physical facilities (e.g. store

    layout) and ambient factors (e.g. music) induce customers' affective responses. Therefore,

    Bauer et al. (2006) proposed that emotional components should be incorporated when

    assessing service quality in a retail context.

    According to flow theory such feelings are aroused during electronic service

    encounters especially by Internet characteristics such as multi-media, interactivity,

    hypermediality and a high level of control during navigation (Childers et al., 2001;

    Csikszentmihalyi, 1988; Hoffman and Novak, 1996). In fact, the reaction of finding fun

    and enjoyment are the key to evaluate the e-service, and the flow experience is the major

    determinants of the Internet usage behavior (Van Riel et al., 2001).

    Despite the high reliability and validity of the developed eTailQ scale, the

    elimination of quality items referring to hedonic aspects of online shopping has to be

    criticized. Bauer et al. (2006) argued that not considering hedonic aspects of online

    shopping (e.g. fun or enjoyment) is a major omission. Electronic service quality measures

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    should integrate online shopping's potential entertainment and emotional value in order to

    capture an online shopping activity fully. Transferring the idea of this quality criterion to

    an electronic service context, characteristics like Web site design or fun and playfulness

    of Web site usage become essential (Bauer et al., 2006).

    In investigating the web satisfaction of web users, Eighmey (1997) indicated that

    the entertaining value, informative value and ease of use are the major consideration of

    users evaluating web satisfaction. Richmond (1996) believed that the entertaining value

    of websites will attract web users to browse the website for a longer time and stimulate

    their shopping desire. Therefore, the entertaining values of websites will surely affect the

    shopping intentions of web users.

    Finally, in order to acquire a comprehensive e-service quality scale, the study

    contains utilitarian and hedonic of e-service quality. In our study, we use Parasuraman et

    al. (2005) E-S-QUAL dimensions (Efficiency, Fulfillment and System Availability and

    Privacy) and dimensions of hedonic quality to measure consumers perceived on the

    quality of e-services. In view of this, this study hoped through the online shopper's

    perspective to explore content and dimensions of e-service quality, which the online

    shoppers are concerned about. As based on the e-services quality of measure in this study.

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    2.3 Perceived Value

    Perceived value in brick-and-mortar contexts has received much attention in recent

    years (e.g., Parasuraman and Grewal, 2000; Sirohi et al., 1998; Sweeney, Soutar, and

    Johnson, 1999). Indeed, Cronin et al. (2000) argued that the study of perceived value

    (along with service quality and satisfaction) has dominated research in the services

    literature. In addition, Fassnacht and Kse (2007) also explored the relationship between

    e-service quality and customer perceived value in a virtual channel. Perceived value has

    its root in equity theory, which considers the ratio of the consumers outcome/input to

    that of the service providers outcome/input (Oliver and DeSarbo, 1988). In marketing

    literature, value usually refers to a trade-off between quality and price (Varki and Colgate,

    2001).

    While a number of conceptual models of value have been put forward (e.g.,

    Holbrook, 1994; Sweeney and Soutar, 2001), value is most typically presented as

    acquisition, transaction, in-use, or redemption-based (see Parasuraman and Grewal, 2000;

    Woodruff and Robert, 1997).

    Parasuraman, Zeithaml, and Berry (1988) defined perceived value as the

    consumers overall assessment of the utility of a product, based on perceptions of what is

    received and what is given. It is the trade-off between a received benefit (i.e., the benefits

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    that a buyer derives from a sellers offering) and a cost (i.e., the buyers monetary and

    non-monetary costs in acquiring the offering).

    Grewal, Monroe, and Krishnan (1998) separated perceived value into two

    componentsacquisition and transaction value. They define the perceived acquisition

    value as the perceived net gains from the products or services customers acquire, while

    the perceived transaction value is defined as the perceived psychological satisfaction

    gained from getting a good deal.

    Customer value is the fundamental basis for all marketing activity. And high

    value is one primary motivation for customer patronage (Holbrook, 1994). Thus,

    customer value regulates behavioral intentions of loyalty toward the service provider as

    long as such relational exchanges provide superior value (Sirdeshmukh et al., 2002).

    Ravald and Grnroos (1996) suggested that value is regarded as an important

    construct of relationship marketing, and one of the most successful competitive strategies.

    Perceived value, as the most important measure of gaining a competitive edge, was

    considered to be an important predictor and the key determinant of customer satisfaction

    and loyalty (Petrick and Backman, 2002). The importance of perceived value in

    e-commerce stems from the fact that it is easy to compare product features and prices

    online (Anderson and Srinivasan, 2003).

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    2.4 On-line Satisfaction

    According to the results of psychological studies on satisfaction, Bailey and

    Pearson (1983) defined customer satisfaction as the satisfaction in a given situation is

    the summation of the feelings or attitudes of an individual under the influences of various

    factors. E-satisfaction was defined as the contentment of the customer with respect to his

    or her prior purchasing experience with a given electronic commerce firm (Anderson and

    Srinivasan, 2003).

    Szymanski and Hise (2000) proposed a model for measuring the influences on

    e-satisfaction and defined e-satisfaction as the customers overall feeling of the online

    shopping experience. With focus-group interview, Szymanski and Hise (2000) concluded

    a priori four advance organizers for e-satisfaction, including convenience, product

    offerings and product information, site design, and financial security. Results of empirical

    studies indicated that convenience, product offerings and product information, and

    financial security are significantly and positively correlated to e-satisfaction. Burke (2002)

    also found that online shoppers were most satisfied with the convenience, product quality,

    value provided, and product selection offered by the online shopping experience.

    According to the study of Jeong, Oh, and Gregoire (2003), increasing customers

    satisfaction with website information through high quality product provisions has a

    significant positive influence on customers intention to make a reservation online. In

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    addition, Fassnacht and Kse (2007) also found that e-service quality and satisfaction

    have strong correlation for the e-service quality research.

    2.5 On-line Loyalty

    In the context of service industries, customer loyalty is the feeling of attachment to

    or affection for a companys people, products, or services that will directly influence

    customer behavior (Jones and Sasser, 1995).

    Griffin (1998) proposed customer loyalty has four characteristicsrepeat

    purchasing frequently, purchasing other products or services that the company provided,

    building word-of-mouth, and a resistance to promotion that other competitors follow out.

    Moreover, Sirohi et al. (1998) mentioned that three measures for the store loyalty are:

    willingness to repurchase, willingness to purchase more in the future, and willingness to

    recommend the store to others. Sirdeshmukh et al. (2002) included four items measuring

    the share of category wallet, intention to recommend, and likelihood of repeat purchase.

    De Wulf and Odekerken-Schroder (2003) measured behavior loyalty by purchasing

    frequency and expenditure amount.

    The importance placed on on-line satisfaction and loyalty has increased because of

    the competitive nature of the on-line market, fueled by the increase in the number of

    on-line retailers and service providers (Rodgers, Negash, and Suk, 2005). Cyr et al. (2005)

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    defined e-Loyalty as intention to revisit a website or to purchase from it in the future.

    Flavian, Guinaliu and Gurrea (2005) suggested online loyalty or e-Loyalty has been

    conceived as a consumers intention to buy from a website, and that consumers will

    not change to another website.

    Srinivasan, Rolph, and Kishore (2002) proposed 8 factors (8C) affecting e-loyalty

    included: Customization, Contact interactivity, Care, Community, Convenience,

    Cultivation, Choice and Character. Srinivasan et al. (2002) discovered that after

    consumers became loyal to a particular e-store, they will give positive word of mouth, be

    glad to recommend it to others, and have a higher price tolerance.

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    CHAPTER 3

    RESEARCH METHODOLOGY

    Based on the purposes of this study, we built the research framework and conduct

    the relevant literature to have the research hypotheses. Next, we show the main subjects

    of this study and collected data through the internet to validate the hypothesis. The related

    research methodology is showed as follows:

    3.1 Research Framework

    This research framework is based on Fassnacht and Kse (2007) model. This

    framework puts forward that e-service quality have effects on on-line satisfaction and

    perceived value, and which in turn influence on-line loyalty. Additionally, this study

    examines the mediation effects of on-line satisfaction and perceived value the on on-line

    loyalty. This study presents the research framework in Figure 2.

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    On-line Satisfaction

    On-line LoyaltyE-service Quality

    Perceived Value

    H1

    H2

    H4

    H5H3

    Figure 2. Research Framework

    Source: This study.

    3.2 Research Hypotheses

    This proposition is also tested in online settings, and most studies indicated that

    service quality will positively effect on satisfaction (Devaraj et al., 2002Rodgers et al.,

    2005). Fassnacht and Kse (2007) also strongly supports e-service quality has positively

    impact on on-line satisfaction. It is hypothesized that:

    H1 E-service quality will have a positive effect on on-line satisfaction.

    The importance placed on on-line loyalty has increased because of the competitive

    nature of the on-line market, fueled by the increase in the number of on-line retailers and

    service providers. Now, it is easier and less costly for consumers to search for more

    product information and to comparison shop to arrive at a purchase decision, and makes

    more important for marketers to build and maintain e-service quality (Rodgers et al.,

    2005). Zeithaml et al. (2002) proposed that e-SQ affected satisfaction, intent to purchase,

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    and purchase. Research evidence suggested the importance of e-SQ to purchase, and e-SQ

    is a key driver of repeat purchases from Websites. Fassnacht and Kse (2007) also

    pointed that e-service quality has a positively effect on on-line loyalty. It is proposed that:

    H2 E-service quality will have a positive effect on on-line loyalty.

    Currently, service quality literature generally agreed that service quality will have a

    positive direct effect on perceived value (e.g., Cronin et al., 2000). In addition to,

    Fassnacht and Kse (2007) argued that e-service quality was more sound would make

    customer have higher perceived value. Based on these comments, this study suggests the

    following:

    H3 E-service quality will have a positive direct effect on perceived value.

    The behavioral dimension of loyalty is related to repeated product purchase or

    purchase intention (e.g., Kuehn, 1962). Reichheld and Sasser (1990) proposed that

    increasing customer loyalty can increase customers loyalty in the future. Most studies on

    the relationship between consumer satisfaction and loyalty consistently support that these

    two constructs are strongly related (Fornell, 1992). Similarly, studies on on-line

    satisfaction have found a positive relationship between on-line satisfaction and on-line

    loyalty (Anderson and Srinivasan, 2003; Devaraj et al., 2002; Yang and Peterson, 2004;

    Rodgers et al., 2005). Fassnacht and Kse (2007) also show that increasing customers

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    on-line satisfaction will help to enhance customers on-line loyalty. It is hypothesized

    that:

    H4 On-line satisfaction will have a positive direct effect on on-line loyalty.

    Zeithaml (1988) proposed that customer perceived value is the main factor in

    determining customer loyalty. When customer has higher perceived quality on a product

    or service the value increased and will promote customers willingness in repurchasing.

    Chang and Wildt (1994) proposed that customer-perceived value has been found to be a

    major contributor to purchase intention. Fassnacht and Kse (2007) also argued that

    perceived value have a positive direct effect on on-line loyalty. It is hypothesized that:

    H5 Perceived value will have a positive effect on on-line loyalty.

    3.3 Operational Definitions of Variables

    Variables of this study include: e-service quality, perceived value, on-line

    satisfaction, and on-line loyalty. The operational definitions and measurement constructs

    of variances are shown in Table 1.

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    Table 1. Operational Definitions of Variables

    Constructs Operational Definitions of VariablesMeasurement

    DimensionsReferences

    Customers can easy and fast to accessand use the site.

    Efficiency

    The site provides technical function is

    effective and correct.

    System

    Availability

    The e-retailer can correctly complete

    services commitment and deliveryproduct to customer on time.

    Fulfillment

    The degree to which the site is safe and

    protects consumer information.Privacy

    On-line

    Service

    Quality

    The extent to which individual

    perceived pleasure, enjoyment in the

    on-line shopping process.

    Enjoyment

    zParasuraman etal. (2005)

    zChilders et al.(2001)

    Customer

    Perceived

    Value

    A difference between total benefits and

    total sacrifices perceived by consumer's

    overall assessment purchasing a product

    or service of the utility.

    zParasuraman,Zeithaml, and

    Berry (1988)

    On-line

    Satisfaction

    Customer satisfied with e-retailer prior

    purchasing experience of overall

    feeling.

    zAnderson andSrinivasan (2003)

    Source: This study.

    zSzymanski andHise (2000)

    On-line

    Loyalty

    Customer use frequency of this site,

    intention to recommend, and likelihood

    of repurchase from this site's product in

    the future.

    zSirdeshmukh etal. (2002)

    zCyr et al. (2005)

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    3.4 Questionnaire Design

    3.4.1 Pretest

    Before the formal distribution questionnaire, we do pre-test to understand subjects

    whether confused the theme of questionnaire. First of all, there are 30 postgraduates of

    Business of graduate schools join the pretest. After collected subjects opinion, we

    modified these unclear items and adjusted these statistic verification items. Finally, we

    refined and finalized the appearance and format of the questionnaire.

    3.4.2 Formal Questionnaire

    This study collected data through the structure questionnaire. According to the

    framework and hypothesis of research, we designed the questionnaire (as shown in

    Appendix A). We used the seven point Likert scale to assess degree of all items where 7

    is strongly agree and 1 is strongly disagree. The questionnaire contents as described

    follow.

    1. Perceived Value

    Perceived value was measured attitude of customers on the website. We adapted

    from Parasuraman et al. (2005) to develop this studys measurement scale. The

    measurement items of perceived value are shown in Table 2.

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    Table 2. Measurement Items of Perceived Value

    Construct Measurement Items1. The prices of the products and services available at

    this site are economical.

    2. The overall convenience of using this site.

    3. The extent to which the site gives me a feeling of

    being in control.

    Perceived Value

    4. Overall, shopping on this Web site is valuable and

    worth it.

    Source: Parasuraman, A., V. A. Zeithaml, and A. Malhotra. E-S-QUALa multiple-itemscale for assessing electronic service quality. Journal Service Reserch 7, no.3 (2005):

    231.

    2. E-service Quality

    Measurement e-service quality includes 5 dimensions. We adapted from

    Parasuraman et al. (2005) proposed that E-S-QUAL scale and Childers et al. (2001) study

    to develop this studys measurement scale. The measurement items of e-service quality

    are shown in Table 3.

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    Table 3. Measurement Items of E-service Quality

    Construct Dimensions Measurement Items

    1. This site makes it easy to find what I need.

    2. It makes it easy to get anywhere on the site.

    3. It enables me to complete a transaction quickly.

    4. Information at this site is well organized.

    5. It loads its pages fast.

    6. This site is simple to use.

    7. This site enables me to get on to it quickly.

    Efficiency

    (EFF)

    8. This site is well organized.

    1. This site is always available for business.

    2. This site launches and runs right away.

    3. This site does not crash.

    System

    availability

    (SYS) 4. Pages at this site do not freeze after I enter my order

    information.

    1. It delivers orders when promised.

    2. This site makes items available for delivery within a

    suitable time frame.

    3. It quickly delivers what I order.

    4. It sends out the items ordered.

    5. It has in stock the items the company claims to have.

    6. It is truthful about its offerings.

    Fulfillment

    (FUL)

    7. It makes accurate promises about delivery of products.

    1. It protects information about my Web-shopping behavior.

    2. It does not share my personal information with other sites.

    Utilitarian

    E-S-Qual

    Privacy

    (PRI)3. This site protects information about my credit card.

    1. Shopping on the Web site would be fun for its own sake.

    2. Shopping on the Web site would make me feel good.

    3. Shopping on the Web site would be boring.

    4. Shopping on the Web site would involve me in the

    shopping process.

    5. Shopping on the Web site would be exciting.

    6. Shopping on the Web site would be enjoyable.

    7. Shopping on the Web site would be uncomfortable.

    Hedonic

    E-S-Qual

    Enjoyment

    (ENJ)

    8. Shopping on the Web site would be interesting.

    Source: Parasuraman, A., V. A. Zeithaml, and A. Malhotra. E-S-QUALa multiple-itemscale for assessing electronic service quality. Journal Service Reserch 7, no.3 (2005):

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    Table 5. Measurement Items of On-line Loyalty

    Construct Measurement Items

    1. I say positive things about this site to other people.

    2. I will recommend this site to someone who seeks my advice.

    3. I will encourage friends and others to do business with this site.

    4. I will consider this site to be my first choice for future

    transactions.

    On-line Loyalty

    5. I will do more business with this site in the coming months.

    Source: Parasuraman, A., V. A. Zeithaml, and A. Malhotra. E-S-QUALa multiple-item

    scale for assessing electronic service quality. Journal Service Reserch 7, no.3 (2005):

    231.

    3.5 Sampling Method

    The research subjects in this study were those who have experience on website.

    Participants were asked to recall a recently used online shopping provider and refer to that

    provider regarding their answers (Parasuramanet al., 2005). This study used online

    questionnaire to collect data. We are not only posted the questionnaires on discussion

    zone, but also used e-mail to send the website of questionnaires.

    A total of 250 questionnaires were returned, and 10 surveys were unusable due to

    answering the same scale (all answered 4) during April 5 through April 20, 2008.

    Therefore, the final useful sample contained 240 respondents.

    3.6 Analysis Method

    1. Descriptive statistics:

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    Descriptive analysis refers to the transformation of the raw data into a form that

    will make them easy to understand and interpret by rearranging, ordering, and

    manipulating data to provide descriptive information.

    2. Reliability analysis

    The internal reliability refers to the internal consistency of the items within a

    questionnaire. The Cronbachs is most widely used when measures have multi-scored

    items. Nunnally and Bernstein (1994) suggested that Cronbachs greater than 0.7

    indicates minimum acceptable reliability for research.

    3. Confirmatory factor analysis:

    We adopted AMOS 6.0 statistical package to test CFA and showed standard model

    evaluation criteria, and test convergent validity. Discriminant validity was evaluated for

    all construct pairs by examining the observed correlation of the constructs.

    4. Structural equation model:

    The present study adopted AMOS 6.0 statistical package to test the construct of

    matched statistical model and explore several standard model evaluation criteria.

    The hypotheses presented earlier were tested within a structural equation modeling

    (SEM) framework using AMOS 6.0. Structural equation analyses has been widely applied

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    in the social sciences and marketing literature. The structural equation model consists of

    two parts: the measurement model and the structural model. The measurement model

    considers the adequacy of the various measures used for theoretical constructs employed

    in the study. The structural model specifies the relationships between the various

    constructs. The SEM methodology incorporates these two models to ascertain the fit

    between the variance-covariance matrix observed in the sample data and that implied by

    the theoretical or research model.

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    CHAPTER 4

    DATA ANALYSIS

    4.1 Description of Data

    This study used online questionnaire to collect data. A total of 250 questionnaires

    were returned, and the final useful sample was 240 respondents. The recovery rate of

    questionnaires is 96%. Description of the basic data of valid samples in Table 6:

    Table 6. The Sample Characteristics

    Demographic Total Percentage (%)Item

    Male 142 59.17%Gender

    Female 98 40.83%

    Below 20 43 17.92%

    21-30 186 77.50%Age

    31-40 11 4.58%

    Free Lance 8 3.33%

    Service Industry 28 11.67%

    Manufacturing Industry 10 4.17%

    Public Servant 11 4.58%

    Business 32 13.33%

    Student 148 61.67%

    Occupation

    Other 3 1.25%

    Below High School 1 0.41%

    College 10 4.17%

    University 172 71.67%Education

    Graduate School 57 23.75%

    Single 221 92.08%Marital Status

    Married 19 7.92%

    Below 5,000 62 25.83%

    5,001-10,000 92 38.33%

    10,001-30,000 58 24.17%Dispensable Income

    Over 30,001 28 11.67%

    Source: This study.

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    Description of the basic data of valid samples is as follows: The percentage of

    female samples (40.83%) is less than male (59.17%); the age is concentrated from 21 to

    30 years old (77.5%); most samples are at university of education (71.67%); the number

    of occupation is students (61.67%); marital status is mainly single (92.08%); Finally, the

    dispensable income concentrated in $5001 to $10,000 dollars (38.33%).

    4.2 Structural Equation Modeling

    Based on Fassnacht and Kses (2007) model of e-service quality this study

    proposed an integrated model including one the independent variable, e-service quality,

    two mediating variables, on-line satisfaction and perceived value, and one dependent

    variable, on-line loyalty. The data-analysis procedure consisted of two stages, according

    to Anderson and Gerbing (1988). In the first stage, we used confirmatory factor analysis

    (CFA) to analyze the construct reliability, discriminant validity, and convergent validity.

    In the second stage, we used structural equation modeling (SEM) to examine the

    goodness-of-fit of structural model and estimated the effect of paths.

    In addition, based on the steps suggested by Sethi and King (1994) this study

    improves the goodness of fit of the proposed model:

    First, we eliminated the variables with factor loadings less than 0.6.

    Second, when the standard of model fitting below acceptable range, then we eliminated

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    that the higher modification indices (M.I.). Especially the modification indices (M.I.) is

    more than 5 value, we considered this item should be eliminated (Joreskog and Sorbom,

    1986).

    Based on the above comments, this study found that eliminated online satisfaction

    of number 4 and 6 items may improve the overall goodness of fit standards of model.

    Table 7. Eliminated Higher Variables of M.I.

    Eliminated Items Factor loadings M.I.

    Item 4 of On-line Satisfaction 0.166 SAT6

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    Figure 3. Research ModelSource: This study.

    4.2.1 Measurement Model

    1. Construct reliability

    This study used SPSS 14.0 for Windows to calculate the reliabilities of constructs.

    The constructs of all reliabilities are above the level of 0.7 (Nunnally and Bernstein,

    1994). The test result shows as Table 8:

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    Table 8. The Tests of Reliability of The Constructs

    Constructs Dimensions Scale Items Cronbach

    Perceived Value 4 0.868

    Efficiency 8 0.919

    System 4 0.780

    Availability Fulfillment 7 0.929

    Privacy 3 0.873

    E-service Quality

    Enjoyment 8 0.821

    On-line Satisfaction 4 0.840

    On-line loyalty 5 0.909

    Source: This study.

    2. Discriminant validity

    This study based on Anderson and Gerbing (1988) proposed that confidence

    interval test to evaluate discriminant validity. According to the correlation of construct

    pairs added or subtracted two standard error of confidence interval. To the extent that the

    results did not include 1.0, this test provided evidence of discriminant validity. It is shown

    in Table 9.

    Table 9. Discriminant Validity

    Confidence Interval Is there discriminate validity?Construct Pair

    E-SQE-SAT 0.768~0.916 Yes

    E-SQE-LOY 0.612~0.816 YesE-SQPV 0.698~0.946 Yes

    E-SATE-LOY 0.669~0.861 Yes

    E-SATPV 0.607~0.875 Yes

    PVE-LOY 0.440~0.736 Yes

    Source: This study.

    3. Convergent validity

    When we measured the same constructs by different indicators, there is the strong

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    relationship between the constructs, called convergent validity. The convergent validity

    generally tested by t test. If all of t values are above 3.29, it presented that this study had

    convergent validity (Fornell and Larcker, 1981). The indictor of this model was described

    in Table 10.

    4. Variance extracted

    After we used AMOS 6.0 to conduct the CFA to computed the variance extracted

    values of each construct. This study all of variance extracted value are above 0.5 (Fornell

    and Larcker, 1981). It is shown in Table 10.

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    Table 10. Results From Test on Validity

    Constructs and Dimensions

    Standardized factor

    loading Standard Error t value*

    Variance

    Extracted

    Perceived Value (PV) 0.638

    PV1 0.656 0.067 9.79

    PV2 0.815 0.045 18.11

    PV3 0.884 0.030 29.47

    PV4 0.823 0.029 28.38

    E-service Quality (E-SQ) 0.618

    Efficiency (EFF) 0.868 0.033 26.30

    System availability (SYS) 0.743 0.056 13.27

    Fulfillment (FUL) 0.882 0.027 32.67

    Privacy (PRI) 0.608 0.055 11.05

    Enjoyment (ENJ) 0.798 0.029 27.52

    On-line Satisfaction (SAT) 0.577

    SAT1 0.853 0.028 30.46

    SAT2 0.573 0.067 8.55

    SAT3 0.726 0.062 11.71SAT5 0.851 0.033 25.79

    On-line Loyalty (E-LOY) 0.662

    LOY1 0.896 0.025 35.84

    LOY2 0.900 0.028 32.14

    LOY3 0.844 0.043 19.63

    LOY4 0.690 0.055 12.55

    LOY5 0.714 0.055 12.98

    *: p

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    According to Hu and Benler (1999) proposed that standard of model fitting, we

    know the results of analysis suggested that a reasonable level of fit of the model. It is

    shown in Table 11.

    Table 11. Goodness-of-Fit Measures

    Indices Results

    1. Goodness of fit standards of model

    1. Is there no negative error variance? No

    2. Is error variance significant? Yes

    3. Are all factor loadings between 0.5 and 0.95? Yes

    2.Goodness of fit standards of model (external quality)

    1. Is the ratio of Chi-square value and degree of freedom smaller

    than 3?(2/DF

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    On-line Satisfaction

    On-line LoyaltyE-service Quality

    Perceived Value

    0.851

    0.830

    0.292

    0.565

    -0.067

    Figure 4. Paths of Research Model

    Source: This study.

    Table 12. Hypothesis Test Results

    Research

    HypothesisPath

    Expected

    SignEstimate t-value Results

    H1E-service QualityOn-line Satisfaction

    0.851** 8.393 Supported

    H2

    E-service Quality

    On-line Loyalty 0.292 1.787Not

    supported

    H3E-service Quality

    Perceived Value 0.830** 11.693 Supported

    H4On-line Satisfaction

    On-line Loyalty 0.565** 4.202 Supported

    H5Perceived Value

    On-line Loyalty -0.067 Not-0.625

    supported

    **p

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    On-line satisfaction has a positively effect on on-line loyalty. Hence, Hypotheses 4

    is supported. The test of H5 produces a surprising result: an insignificant negative effect

    of perceived value on on-line loyalty. As we hypothesized a positive effect, H5 is not

    supported.

    Table 13. Examining Effects on On-line Loyalty

    Path Direct Effect Indirect Effect Total Effect

    E-service Quality On-line Satisfaction 0.851** --- 0.851

    E-service Quality On-line Loyalty 0.292 0.425** 0.717E-service Quality Perceived Value 0.830** --- 0.830On-line Satisfaction On-line Loyalty 0.565** --- 0.565Perceived Value On-line Loyalty -0.067 --- -0.067**p0.05). But the on-line satisfaction is

    mediation variable. The on-line satisfaction also cause mediator on between e-service

    quality and on-line loyalty, and indirect effect is 0.425; total effect is 0.717. Thus, on-line

    satisfaction is mediates the relationship between e-service quality and on-line loyalty.

    Table 14. Mediation Effect

    Confidence Interval Is there mediation effect?Construct Pair

    E-SQE-SAT --- No

    E-SQE-LOY 0.039~0.761 Yes

    E-SQPV --- No

    E-SATE-LOY --- No

    E-SATPV --- No

    PVE-LOY --- No

    Source: This study.

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    According to the method proposed by Shrout and Bolger (2002), we assess the

    mediation effects of on-line satisfaction and perceived value on on-line loyalty. We based

    on the construct pairs of confidence interval to test if it has a mediation effect. To extent

    that the results did not include 0, this test provided evidence of mediation effect. It is

    shown in Table 14.

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    CHAPTER 5

    CONCLUSIONS

    5.1 Conclusions

    This study compared two newly developed scales in the literature, that is, the

    eTailQ scale developed by Wolfinbarger and Gilly (2003) and the E-S-Qual scale by

    Parasuraman et al. (2005) and combined hedonic quality dimension in an integrated

    model.. Thus, this study provides a comprehensive e-service quality dimensions. We hope

    can help e-retailer to evaluate customer service experience with a basis of comprehensive

    measures.

    According to the findings of the empirical data analysis, we get the conclusions of

    this study as follows:

    1. Influence of e-service quality on on-line satisfaction.

    The e-services quality includes five quality dimensions: efficiency, fulfillment,

    system availability, privacy, and enjoyment. The results found that e-service quality has a

    significant positively effect on on-line satisfaction. It means that the better e-service

    quality, the more on-line satisfaction of the site. The importance of five quality

    dimensions is following: fulfillment, efficiency, enjoyment, system availability, privacy.

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    2. Influence of on-line satisfaction on on-line loyalty.

    This study found that on-line satisfaction has significant positively effect on on-line

    loyalty. It means the higher on-line satisfaction with website can increase on-line loyalty.

    The result of this study is consistent with that found by Yang and Peterson (2004).

    Therefore, if e-retailers can provide the sound e-service quality to increase on-line

    satisfaction, it would enhance customer uses frequency of this site, intention to

    recommend, and likelihood of repurchase from this site in the future.

    3. Influence of e-service quality on on-line loyalty.

    Therefore, the e-retailers provided service quality to improve customer toward

    website on-line loyalty by increasing on-line satisfaction. Hence, to e-retailer provided

    that extremely sound e-service quality is the best way of to maintain between with

    customer relationship.

    The literature of this study has been emphasized that important of e-service quality.

    All of three comments, we found our conclusions accord with previous studies (Fassnacht

    and Kse, 2007). We get the relationship that e-service quality on-line satisfaction

    on-line loyalty.

    4. Influence of e-service quality on perceived value.

    The e-service quality have a significantly positively effect on perceived value. It

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    shows that the e-retailers provide well e-service quality can enhance the customer

    perceived value.

    5. Influence of perceived value on on-line loyalty.

    The perceived value have no significantly positively effect on on-line loyalty. It

    shows that the higher customer perceived value doesnt enhance customers on-line

    loyalty.

    In addition, we get the following mainly conclusions by integrating the sample

    analysis results.

    1. In terms of consumers education, most respondents have at least university degree

    (71.67%), suggesting that customers with higher education have more willingness to

    using online purchase to consume.

    2. In terms of age, the age is concentrated from 21 to 30 years old (77.5%), suggesting

    that these consumers have more online purchase experience and can easily accept this

    model of online purchase products at 21-30 years old more that other years old.

    3. In terms of occupation, the number of occupation is students (61.67%), suggesting that

    students are the major consumer group of website.

    5.2 Managerial Implications

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    We hope that the results and findings can be an assistance and reference for

    managers of e-retailers and customers.

    1. Enhancing customers on-line loyalty

    Enhancing customers on-line loyalty is website successful key factor. When

    customers have on-line loyalty to the website, it will reduce the marketing cost and

    enhance customers identification to the website. Finally, e-retailer will be profitable.

    Reichheld and Sasser (1990) proposed that when the e-retailer can successful

    reduce rate of defections 5%, and it can boost profits 25% to 85% for the e-retailer.

    Therefore, if the e-retailers can reliably and correctly provide services to meet the

    customer needs, and can provide sound e-service to enhance customers on-line

    satisfaction. It would attract more consumers to consume and become an e-retailer of

    competitive advantage.

    2. E-service quality is the most important factor

    In terms of importance, e-service quality of website is the key factor to affect

    on-line satisfaction, which includes five dimensions of efficiency, system availability,

    fulfillment, privacy, and enjoyment.

    In order to ensure service consistency, the e-retailers have to promise physical

    delivery is on-time. It could effectively improve customer on-line loyalty. However, the

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    e-retailers provide that sound service quality is easily controllable means of influencing

    the customers on-line satisfaction and loyalty. Thus, the e-retailers should continuously

    manage and improve their e-service quality to meet potential customers needs and

    purchase wants.

    Finally, creating and developing process of e-service quality that customers will

    generate perceived value and satisfaction. However, the e-retailers maintaining

    appropriate service quality seems to be appear to fruitful profits for those retailers. This is

    e-retailers interested in enhancing customer loyalty by providing sound service quality.

    5.3 Research Limitation and Future Directions of Research

    As a result of inadequate labor, material and time, the difficulties and limits of this

    study included:

    1. This study is only posted on My3Q and other websites or distributed to respondents via

    emails. Although we have made effort to distribute the questionnaire to different

    consumer groups, the sample cannot represent all consumer groups due to the said

    factors.

    2. Data in this study were collected by web questionnaire. In order to get the reliability of

    sample data, extra time was spent on reviewing the sample data , to design suitable

    filter function for the questionnaire (for example, avoid to create repeated copies) is

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    requested in the future.

    3. The study used the website as our empirical samples so the conclusions may not be

    precisely generalized to the other industries. Thus, future researchers need to apply this

    study and conclusions to the other industries with cautions.

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    Vita

    Chia-Shing Chen, son of Tien-Fu Chenand Li-Chuan Chang

    , was born on April 04,1983 in Taipei, R.O.C. He graduated from Hsing Wu

    College, and then matriculated at Ming Chuan University

    as an undergraduate student. After that, he was admitted to the Graduate School of

    Management of Tatung University and graduated in July 2008.

    Permanent Address: 1F., No.2, Lane 126, Sec. 1, Minyi Rd., Wugu Township, Taipei

    County 248, Taiwan (R.O.C.)

    248 126 21

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    Appendix

    !!

    !

    1.B to C ()

    2.

    3.

    1.2.3.4.

    53

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    1.2.3.4.

    5.6.7.8.9.10.11.12.13.

    14.15.16.17.18.19.20.21.

    22.23.24.25.26.27.28.27.

    30.

    54

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    1.2.

    3.4.5.6.

    1.2.3.4.5.

    55

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    1.

    2. 20 21~30 31~40 41~50 51~60 603. 4. 5. 6. 7. 5,000 5,001~10,000 10,001~30,000 30,001

    56

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    E-S-Qual

    APPLYING E-S-QUAL SCALE TO ASSESS THE

    EFFECTS OF E-SERVICE QUALITY ON

    E-LOYALTY WITH E-SATISFACTION AND

    PERCEIVED VALUE AS MEDIATORS

    Chia-Shing Chen

    Prof. Hao-Erl Yang)

    Thesis for Master of Business Administration

    Department of Business Management

    Tatung University

    July 2008

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    ...................................................................................................................i

    ............................................................................................................ iii

    .............................................................................................................iv

    ..................................................................................................1

    ..........................................................................................1

    ......................................................................................................2

    ......................................................................................................3

    .........................................................................................4

    ......................................................................................................4

    .................................................................................4

    ..............................................................................................9

    ................................................................................................10

    ................................................................................................11

    .......................................................................................13

    ....................................................................................................13

    ....................................................................................................13

    ....................................................................................15

    ....................................................................................................16

    ....................................................................................................19

    ....................................................................................................20

    .......................................................................................22

    i

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    ....................................................................................................22

    ....................................................................................23

    ...................................................................................31

    ....................................................................................................31

    ....................................................................................................33

    .......................................................................34

    ........................................................................................................36

    ii

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    ................................................................................................................3

    ..............................................................................................................13

    ..............................................................................................................24

    .................................................................................29

    iii

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    .................................................................................16

    ..................................................................................................17

    .........................................................................................18

    ..............................................................................................19

    ..............................................................................................19

    ..................................................................................................................22

    ..................................................................................................................23

    ..................................................................................................................25

    ..............................................................................................25

    t ..........................................27

    .........................................................28

    ......................................................................................................28

    .............................................29

    .........................................................................................30

    iv

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    (Internet)

    (Rust, 2001)

    20072008

    2529B2C1384C2C1145(,

    2008)

    (Evanschitzky et al., 2004)

    (Zeithaml et al., 2002)

    Meuter et al. (2000)

    (Rust and Lemon, 2001)

    http://www.find.org.tw/find/home.aspxhttp://www.find.org.tw/find/home.aspx
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    (Utilitarian)(Hedonic)

    B to C

    ()

    AMOS 6.0(SEM)

    2

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    3

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    Rust and Lemon (2001)

    Grnroos et al. (2000)

    NetOffer(

    )()

    /

    (Bauer et al., 2005; Parasuraman et al., 2005; Zeithaml et al., 2002)

    4

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    (Utilitarian)(Hedonic)

    (Utilitarian)

    Juran and Gryna (1970)()

    ()()(

    )

    (Bauer et al., 2006)

    Barnes and Vidgen (2001)SERVQUAL

    ( )

    ()()()(

    )

    Van Riel et al. (2001)Grnroos et al. (2000)

    Wolfinbarger and Gilly (2003)

    //

    5

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    Zeithaml et al. (2002), Parasuraman et al. (2005)

    (E-S-QUAL)

    E-S-QUAL(

    )E-RecS-QUAL

    (Parasuraman et al., 2005)E-RecS-QUAL

    ()

    (e-core service quality scale, E-S-QUAL)

    ( ) (Efficiency)

    Davis (1989)

    ( ) (Fulfillment)

    Wolfinbarger and Gilly (2002)

    6

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    ( ) (System availability)

    (System design quality)

    (Liu and Arnett , 2000)

    ( ) (Privacy)

    (Culnan, 1999)

    (Friedman et al., 2000)

    (Hedonic)

    Parasuraman et al. (2005)

    (p. 229)

    (Bauer et al., 2006)eTailQ

    (Wolfinbarger and Gilly, 2003)E-S-QUAL

    Babin et al. (1994, 2005)

    7

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    (Bitner, 1990)

    Wakefield and Blodgett (1999)

    ()()Bauer et al. (2006)

    (hypermediality)(Childers et al.,

    2001; Csikszentmihalyi, 1988; Hoffman and Novak, 1996)

    (Van Riel et al., 2001)

    eTailQ

    Bauer et al. (2006)

    ()

    (Bauer et al., 2006)

    Eighmey (1997)

    Richmond(1996)

    8

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    Parasuraman et al. (2005)(E-S-QUAL)

    ()

    (e.g.,

    Parasuraman and Grewal, 2000; Sirohi et al., 1998; Sweeney, Soutar, and Johnson,

    1999 )Cronin et al. (2000)

    Fassnacht and Kse (2007)

    /

    /

    (Oliver and DeSarbo, 1988)

    (Varki and Colgate, 2001)

    (e.g., Holbrook, 1994; Sweeney and

    Soutar, 2001)(see Parasuraman

    and Grewal, 2000; Woodruff and Robert, 1997)

    9

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    Parasuraman, Zeithaml, and Berry (1988)

    (

    )()

    Grewal, Monroe, and Krishnan (1998)

    (Holbrook and Morris, 1994)

    (Sirdeshmukh et al., 2002)

    Ravald and Grnroos (1996)

    (Petrick and Backman, 2002)

    (Anderson and Srinivasan, 2003)

    Bailey and Pearson (1983)

    (Anderson and Srinivasan,

    10

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    2003)Szymanski and Hise (2000)

    (e-satisfaction)Szymanski and Hise (2000)

    (focus-group interview)

    (convenience)(product offerings and product information)

    (site design)(financial security)

    Burke (2002)

    Jeong, Oh, and Gregoire (2003)

    Fassnacht and Kse (2007)

    (Jones and Sasser, 1995)

    Griffin (1998)()()

    ()()

    Sirohi et al. (1998)()()

    ()Sirdeshmukh, et al. (2002)

    11

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    De Wulf and

    Odekerken-Schroder (2003)

    (Rodgers, Negash, and Suk, 2005)Cyr et al. (2005)

    Flavian, Guinaliu and Gurrea

    (2005)

    Srinivasan, Rolph, and Kishore (2002)(8C)

    (Customization)(Contact interactivity)(Care)

    (Community)(Convenience)(Cultivation)(Choice)

    (Character)Srinivasan et al. (2002)

    12

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    Fassnacht and Kse (2007)

    H1

    H2

    H4

    H3 H5

    (Devaraj et

    al., 2002; Rodgers et al., 2005)

    (Fassnacht and Kse, 2007)

    13

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    H1

    (Rodgers et al.,

    2005)Zeithaml et al. (2002)

    Fassnacht and Kse (2007)

    H2

    (e.g., Cronin et al., 2000)Fassnacht and Kse (2007)

    H3

    (e.g., Kuehn, 1962)

    Reichheld and Sasser (1990)

    (Fornell,

    1992)

    (Anderson and Srinivasan, 2003; Devaraj et al., 2002; Yang and Peterson, 2004; Rodgers

    14

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    et al., 2005)Fassnacht and Kse (2007)

    H4

    Zeithaml (1988)

    Chang and Wi