The role of social presence in establishing loyalty in e-Service environments

doi:10.1016/J.INTCOM.2006.07.010

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The role of social presence in establishing loyalty in e-Service environments

Journal Article•DOI•

The role of social presence in establishing loyalty in e-Service environments

Dianne Cyr¹, Khaled Hassanein², Milena Head², Alex Ivanov¹•Institutions (2)

Simon Fraser University¹, McMaster University²

01 Jan 2007-Interacting with Computers (Oxford University Press)-Vol. 19, Iss: 1, pp 43-56

TL;DR: A model for e-Loyalty is proposed and used to examine how varied conditions of social presence in a B2C e-Services context influence e- Loyalty and its antecedents of perceived usefulness, trust and enjoyment.

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About: This article is published in Interacting with Computers.The article was published on 2007-01-01. It has received 660 citations till now. The article focuses on the topics: Loyalty business model & Loyalty.

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Journal Article•DOI•

Understanding customers' repeat purchase intentions in B2C e-commerce: the roles of utilitarian value, hedonic value and perceived risk

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Chao-Min Chiu¹, Eric T. G. Wang², Yu-Hui Fang³, Hsin-Yi Huang⁴•Institutions (4)

National Sun Yat-sen University¹, National Central University², Tamkang University³, Soochow University (Taiwan)⁴

01 Jan 2014-Information Systems Journal

TL;DR: The results indicate that both the utilitarian value and hedonic value are positively associated with buyers' repeat purchase intention.

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Abstract: Customer loyalty or repeat purchasing is critical for the survival and success of any store By focusing on online stores, this study investigates the repeat purchase intention of experienced online buyers based on means-end chain theory and prospect theory In the research model, both utilitarian value and hedonic value are hypothesised to affect repeat purchase intention positively Perceived risk is hypothesised to affect repeat purchase intention negatively and moderate the effects of utilitarian and hedonic values on repeat purchase intention Utilitarian value is proposed as a formative second-order construct formed by product offerings, product information, monetary savings and convenience Hedonic value is also proposed as a formative second-order construct formed by the six hedonic benefits that have been identified in prior research Data collected from 782 Yahoo!Kimo customers provide strong support for the research model The results indicate that both the utilitarian value and hedonic value are positively associated with buyers' repeat purchase intention A higher level of perceived risk reduces the effect of utilitarian value and increases the effect of hedonic value on repeat purchase intention Implications for theory and practice and suggestions for future research are provided

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905 citations

Additional excerpts

..., 2002) * (Prasad & Aryasri, 2009) Price * (Liao & Cheung, 2001) * (Kim & Gupta, 2009) Perceived usefulness * (Pavlou, 2003) * (Pavlou, 2003) Enjoyment/playfulness * (Teo, 2001) * (Cyr et al., 2007)...
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The Service Profit Chain: How Leading Companies Link Profit and Growth to Loyalty, Satisfaction, and Value (Цепочка создания прибыли в сфере услуг: как ведущие компании связывают прибыль и рост с лояльностью, удовлетворением и ценностью)

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James L. Heskett, W. Earl Sasser, Leonard A. Schlesinger

01 Jan 1997

TL;DR: Heskett, Sasser, and Schlesinger as mentioned in this paper show how managers at American Express, Southwest Airlines, Banc One, Waste Management, USAA, MBNA, Intuit, British Airways, Taco Bell, Fairfield Inns, Ritz-Carlton Hotel, and the Merry Maids subsidiary of ServiceMaster employ a quantifiable set of relationships that directly link profit and growth to not only customer loyalty and satisfaction, but to employee loyalty, satisfaction, and productivity.

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Abstract: Why are a select few service firms better at what they do - year in and year out - than their competitors? For most senior managers, the profusion of anecdotal "service excellence" books fails to address this key question. In this pathbreaking book, world-renowned Harvard Business School service firm experts James L. Heskett, W. Earl Sasser, Jr. and Leonard A. Schlesinger reveal that leading companies stay on top by managing the service profit chain. Based on five years of painstaking research, the authors show how managers at American Express, Southwest Airlines, Banc One, Waste Management, USAA, MBNA, Intuit, British Airways, Taco Bell, Fairfield Inns, Ritz-Carlton Hotel, and the Merry Maids subsidiary of ServiceMaster employ a quantifiable set of relationships that directly links profit and growth to not only customer loyalty and satisfaction, but to employee loyalty, satisfaction, and productivity. The strongest relationships the authors discovered are those between (1) profit and customer loyalty; (2) employee loyalty and customer loyalty; and (3) employee satisfaction and customer satisfaction. Moreover, these relationships are mutually reinforcing; that is, satisfied customers contribute to employee satisfaction and vice versa. Here, finally, is the foundation for a powerful strategic service vision, a model on which any manager can build more focused operations and marketing capabilities. For example, the authors demonstrate how, in Banc One's operating divisions, a direct relationship between customer loyalty measured by the "depth" of a relationship, the number of banking services a customer utilizes, and profitability led the bank to encourage existing customers to further extend the bank services they use. Taco Bell has found that their stores in the top quadrant of customer satisfaction ratings outperform their other stores on all measures. At American Express Travel Services, offices that ticket quickly and accurately are more profitable than those which don't. With hundreds of examples like these, the authors show how to manage the customer-employee "satisfaction mirror" and the customer value equation to achieve a "customer's eye view" of goods and services. They describe how companies in any service industry can (1) measure service profit chain relationships across operating units; (2) communicate the resulting self-appraisal; (3) develop a "balanced scorecard" of performance; (4) develop a recognitions and rewards system tied to established measures; (5) communicate results company-wide; (6) develop an internal "best practice" information exchange; and (7) improve overall service profit chain performance. What difference can service profit chain management make? A lot. Between 1986 and 1995, the common stock prices of the companies studied by the authors increased 147%, nearly twice as fast as the price of the stocks of their closest competitors. The proven success and high-yielding results from these high-achieving companies will make The Service Profit Chain required reading for senior, division, and business unit managers in all service companies, as well as for students of service management.

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862 citations

Journal Article•DOI•

Manipulating perceived social presence through the web interface and its impact on attitude towards online shopping

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Khaled Hassanein¹, Milena Head¹•Institutions (1)

McMaster University¹

01 Aug 2007-International Journal of Human-computer Studies \/ International Journal of Man-machine Studies

TL;DR: Higher levels of perceived social presence are shown to positively impact the perceived usefulness, trust and enjoyment of shopping websites, leading to more favourable consumer attitudes.

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Abstract: Electronic commerce typically lacks human warmth and sociability, since it is more impersonal, anonymous and automated than traditional face-to-face commerce. This paper explores how human warmth and sociability can be integrated through the web interface to positively impact consumer attitudes towards online shopping. An empirical study was undertaken to investigate the impact of various levels of socially rich text and picture design elements on the perception of online social presence and its subsequent effect on antecedents of attitudes towards websites. Higher levels of perceived social presence are shown to positively impact the perceived usefulness, trust and enjoyment of shopping websites, leading to more favourable consumer attitudes. Implications of these finding for practitioners and future research are outlined.

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773 citations

Cites background from "The role of social presence in esta..."

...…features that may instil a sense of social presence through imaginary interactions include socially- rich picture content (Gefen and Straub, 2003; Cyr et al., 2007), socially- rich text content (Gefen and Straub 2003), personalized greetings (Gefen and Straub, 2003; Kumar and Benbasat, 2002),…...
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...In a web context, interface features have been suggested to help impact the perception of social presence (Cyr et al., 2007; Riegelsberger, 2003; Steinbrück et al., 2002), however, to the best of our knowledge, no empirical studies have been conducted to manipulate social presence through the web…...
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...Finally, conclusions are outlined, indicating limitations for this study and proposing areas for future research....
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...Previous studies have explored the impact of social presence for online digital products (i.e. airline and concert tickets) (Gefen and Straub, 2003; Cyr et al., 2007) and email (Gefen and Straub, 1997; Karahanna and Straub, 1999; Straub, 1994)....
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...…may be incorporated through website features such as e-mail after-sales support (Gefen and Straub, 2003), virtual communities (Kumar and Benbasat, 2002), chats (Kumar and Benbasat, 2002), message boards (Cyr et al., 2007), and human web assistants (Åberg and Shahmehri, 2001; Hostler et al., 2005)....
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Journal Article•DOI•

Establishing Trust in Electronic Commerce Through Online Word of Mouth: An Examination Across Genders

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Neveen Awad¹, Arik Ragowsky¹•Institutions (1)

Wayne State University¹

01 Apr 2008-The Missouri Review

TL;DR: The results show that the effect of trust on intention to shop online is stronger for women than for men, and that online word-of-mouth quality affects online trust differently across genders.

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Abstract: This paper focuses on the cultural effect of gender on the relationship of online word of mouth and trust in e-commerce. To encourage online commerce, many online retailers use online word-of-mouth systems, where consumers can rate products offered for sale. To date, how such ratings affect trust and adoption of e-commerce across genders has been relatively unexplored. We assess whether the effect of online trust on intention to shop online is moderated by gender. Our results show that the effect of trust on intention to shop online is stronger for women than for men. In addition, we find that men value their ability to post content online, whereas women value the responsive participation of other consumers to the content they have posted. Finally, we find that online word-of-mouth quality affects online trust differently across genders.

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620 citations

Cites background or result from "The role of social presence in esta..."

...Women are therefore judging the value of online WOM based on the response they get, which is aligned with prior literature that illustrates that women’s communication is typically focused around developing a rapport [91], and also prior literature in social presence theory, which has shown that perceived social presence has a direct effect on e-loyalty for women, but not for men [19]....
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...Perceived social presence has been shown to have a direct effect on e-loyalty for women, but not for men [19]....
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...This hypothesis is aligned with prior findings revealing that women perceive more risk with regard to buying online [35], are less likely to trust a Web site [18], and are more influenced by the impact of trust on e-loyalty than men [19]....
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...Prior studies found that enjoyment affected e-loyalty for women, but not for men; and that perceived social presence had a direct effect on e-loyalty for women, but not for men [19]....
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...In addition, responsive participation may also contribute to a sense of online social presence, which may also be perceived as beneficial by women, as prior literature has found that perceived social presence has a direct effect on e-loyalty for women, but not for men [19]....
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Journal Article•DOI•

Review: How shall I trust the faceless and the intangible? A literature review on the antecedents of online trust

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Ardion Beldad¹, Menno de Jong¹, Michaël Steehouder¹•Institutions (1)

University of Twente¹

01 Sep 2010-Computers in Human Behavior

TL;DR: An overview of the available research into the antecedents of trust in both commercial and non-commercial online transactions and services is provided, giving practitioners an overview of possibly relevant variables that may affect people's trust in electronic services and a state-of-the-art Overview of the empirical support for the relevance of these variables.

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608 citations

Cites background from "The role of social presence in esta..."

...…with EQS 5.7 Satisfaction with the website, perceived organizational reputation Satisfaction with the website, perceived organizational reputation Cyr et al. (2007) Experiential survey with 185 students (Canada) tasked to browse an e-service website for buying concert tickets Structural equation…...
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References

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Open Access

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Journal Article•DOI•

Evaluating Structural Equation Models with Unobservable Variables and Measurement Error

[...]

Claes Fornell¹, David F. Larcker²•Institutions (2)

University of Michigan¹, Northwestern University²

01 Feb 1981-Journal of Marketing Research

TL;DR: In this paper, the statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined, and a drawback of the commonly applied chi square test, in additit...

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Abstract: The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addit...

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56,555 citations

"The role of social presence in esta..." refers background in this paper

...To assess the convergent validity of the measurements, Fornell and Larcker (1981) propose examining three measures: (i) the item reliability of each measure; (ii) the composite (construct) reliability of each construct; and (iii) the average variance extracted for each construct....
[...]
... Fornell and Larcker (1981) suggested that the average variance extracted (AVE) from a construct should exceed 0.5....
[...]
...To assess the convergent validity of the measurements, Fornell and Larcker (1981) propose examining three measures: (i) the item reliability of each measure; (ii) the composite (construct) reliability of each construct; and (iii) the average variance extracted for each construct....
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...As per Fornell and Larcker (1981) , the correlations between items in any two constructs should be lower than the square root of the average variance shared by items within a construct....
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...a Diagonal elements in bold (the square root of AVE) should exceed the inter-construct correlations below and across them for adequate discriminant validity Fornell and Larcker (1981)....
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Perceived Usefulness, Perceived Ease of Use, and User

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Perceived Usefulness, Fred D. Davis

01 Jan 1989

TL;DR: Regression analyses suggest that perceived ease of use may actually be a causal antecdent to perceived usefulness, as opposed to a parallel, direct determinant of system usage.

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40,975 citations

"The role of social presence in esta..." refers background in this paper

...As such, online purchase intentions and attitude towards a website, and by extension e-Loyalty, can be partially explained by the technology acceptance model, or TAM (Davis, 1989; Davis et al., 1989)....
[...]

Journal Article•DOI•

Perceived usefulness, perceived ease of use, and user acceptance of information technology

[...]

Fred D. Davis¹•Institutions (1)

University of Michigan¹

01 Sep 1989-Management Information Systems Quarterly

TL;DR: In this article, the authors developed and validated new scales for two specific variables, perceived usefulness and perceived ease of use, which are hypothesized to be fundamental determinants of user acceptance.

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Abstract: Valid measurement scales for predicting user acceptance of computers are in short supply. Most subjective measures used in practice are unvalidated, and their relationship to system usage is unknown. The present research develops and validates new scales for two specific variables, perceived usefulness and perceived ease of use, which are hypothesized to be fundamental determinants of user acceptance. Definitions of these two variables were used to develop scale items that were pretested for content validity and then tested for reliability and construct validity in two studies involving a total of 152 users and four application programs. The measures were refined and streamlined, resulting in two six-item scales with reliabilities of .98 for usefulness and .94 for ease of use. The scales exhibited hgih convergent, discriminant, and factorial validity. Perceived usefulness was significnatly correlated with both self-reported current usage r = .63, Study 1) and self-predicted future usage r = .85, Study 2). Perceived ease of use was also significantly correlated with current usage r = .45, Study 1) and future usage r = .59, Study 2). In both studies, usefulness had a signficnatly greater correaltion with usage behavior than did ease of use. Regression analyses suggest that perceived ease of use may actually be a causal antecdent to perceived usefulness, as opposed to a parallel, direct determinant of system usage. Implications are drawn for future research on user acceptance.

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40,720 citations

Journal Article•DOI•

User Acceptance of Computer Technology: A Comparison of Two Theoretical Models

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Fred D. Davis¹, Richard P. Bagozzi¹, Paul R. Warshaw²•Institutions (2)

University of Michigan¹, California Polytechnic State University²

01 Aug 1989-Management Science

TL;DR: In this article, the authors address the ability to predict peoples' computer acceptance from a measure of their intentions, and explain their intentions in terms of their attitudes, subjective norms, perceived usefulness, perceived ease of use, and related variables.

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Abstract: Computer systems cannot improve organizational performance if they aren't used. Unfortunately, resistance to end-user systems by managers and professionals is a widespread problem. To better predict, explain, and increase user acceptance, we need to better understand why people accept or reject computers. This research addresses the ability to predict peoples' computer acceptance from a measure of their intentions, and the ability to explain their intentions in terms of their attitudes, subjective norms, perceived usefulness, perceived ease of use, and related variables. In a longitudinal study of 107 users, intentions to use a specific system, measured after a one-hour introduction to the system, were correlated 0.35 with system use 14 weeks later. The intention-usage correlation was 0.63 at the end of this time period. Perceived usefulness strongly influenced peoples' intentions, explaining more than half of the variance in intentions at the end of 14 weeks. Perceived ease of use had a small but significant effect on intentions as well, although this effect subsided over time. Attitudes only partially mediated the effects of these beliefs on intentions. Subjective norms had no effect on intentions. These results suggest the possibility of simple but powerful models of the determinants of user acceptance, with practical value for evaluating systems and guiding managerial interventions aimed at reducing the problem of underutilized computer technology.

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21,880 citations

"The role of social presence in esta..." refers background in this paper

...TAM has a history of use in the IS field and is considered robust in a wide variety of contexts, including e-Commerce (for example, Gefen et al., 2000; Moon and Kim, 2001)....
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...In research examining TAM in e-Services, Gefen and Straub (2003) show a positive relationship between PEOU and PU, and PU and purchase intentions....
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...As such, online purchase intentions and attitude towards a website, and by extension e-Loyalty, can be partially explained by the technology acceptance model, or TAM (Davis, 1989; Davis et al., 1989)....
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...We now examine the relationships between perceived social presence and the TAM constructs of PU and PEOU....
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...This model employs the technology acceptance model (TAM), enjoyment, and perceived social presence as antecedents to e-Loyalty....
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Book•

The consequences of modernity

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Anthony Giddens

01 Jan 1990

TL;DR: In this paper, the authors present a Phenomonology of modernity and post-modernity in the context of trust in abstract systems and the transformation of intimacy in the modern world.

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Abstract: Part I:. Introduction. The Discontinuities of Modernity. Security and Danger, Trust and Risk. Sociology and Modernity. Modernity, Time and Space. Disembedding. Trust. The Reflexivity of Modernity. Modernity and Post-- Modernity?. Summary. Part II:. The Institutional Dimensions of Modernity. The Globalizing of Modernity. Two Theoretical Perspectives. Dimensions of Globalization. Part III:. Trust and Modernity. Trust in Abstract Systems. Trust and Expertise. Trust and Ontological Security. The Pre--Modern and Modern. Part IV:. Abstract Systems and the Transformation of Intimacy. Trust and Personal Relations. Trust and Personal Identity. Risk and Danger in the Modern World. Risk and Ontological Security. Adaptive Reactions. A Phenomonology of Modernity. Deskilling and Reskilling in Everyday Life. Objections to Post--Modernity. Part V:. Riding the Juggernaut. Utopian Realism. Future Orientations. The Role of Social Movements. Post--Modernity. Part VI: . Is Modernity and Western Project?. Concluding Observations. Notes.

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14,544 citations

"The role of social presence in esta..." refers background in this paper

...This separation of time and space is referred to as dis-embedding (Giddens, 1990), and is thought to create negative consequences for consumer trust, as well as hamper e-Commerce develop- 0953-5438/$ - see front matter 2006 Elsevier B.V....
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...This separation of time and space is referred to as dis-embedding (Giddens, 1990), and is thought to create negative consequences for consumer trust, as well as hamper e-Commerce develop-...
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