How to Enhance Vendor-Specific Perceived Effectiveness of E-Commerce Institutional Mechanisms and Online Shopper Loyalty

ABSTRACT

Online shopping, amassive information technology (IT)-mediated industry, is vulnerable to the risks of personal information leaks, credit card fraud, and nonreceipt of goods. These risks can cause shoppers to discontinue their use of ashopping website. To mitigate the risks, we propose that shopping websites develop risk-reducing mechanisms to enhance shoppers’ vendor-specific perceived effectiveness of e-commerce institutional mechanisms (VS-PEEIM), aconstruct new to the literature. We examined the relations among website quality, VS-PEEIM, and shopper loyalty. We found that VS-PEEIM mediates the impacts of service quality and information quality on shopper loyalty. Moreover, VS-PEEIM can explain more variance in loyalty than information quality and service quality can explain. Practically, our findings offer anew means for e-commerce firms to enhance shopper loyalty. Theoretically, our study proposes anew concept, VS-PEEIM, avendor-specific version of PEEIM, and verifies its influence on shopper loyalty, offering new knowledge on better using VS-PEEIM.

KEY WORDS:

• AND PHRASES: E-commerce institutional mechanisms
• online loyalty
• online shopping
• structural equation modeling
• institutional mechanisms
• PEEIM
• e-commerce risks
• risk management

Disclosure Statement

No potential conflict of interest was reported by the authors.

Supplementary information

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Additional information

Notes on contributors

Tzu-Ling Huang

Tzu-Ling Huang ([email protected]) is adoctoral candidate at the Graduate Institute of Management at Chang Gung University, Taiwan. Her research interests include e-commerce and IT applications in health care settings. She has published in Decision Support Systems, Electronic Commerce Research and Applications, International Journal of Information Management, and Internet Research.

Chun-Han Chen

Chun-Han Chen ([email protected]) is agraduate of the Department of Information Management at Chang Gung University Taiwan.

Gen-Yih Liao

Gen-Yih Liao ([email protected], co-corresponding author) is an associate professor of the Department of Information Management at Chang Gung University and an associate research fellow (joint appointment) of the Department of Nursing, Chang Gung Memorial Hospital, Taoyuan. He has published in International Journal of Electronic Commerce, Decision Support Systems, International Journal of Information Management, Computers in Human Behavior, and other journals.

T. C. E. Cheng

T.C.E.Cheng ([email protected]) is Fung Yiu King–Wing Hang Bank Professor in Business Administration, Chair Professor of Management, and Dean of Faculty of Business at The HongKong Polytechnic University. He has published in MIS Quarterly, Management Science, and Journal of Management Information Systems.

Ching-I Teng

Ching-I Teng ([email protected], corresponding author) is aprofessor at Chang Gung University and a research fellow of Department of Rehabilitation, Chang Gung Memorial Hospital, Linkou, and a professor of Department of Business and Management, Ming Chi University of Technology, Taiwan. He has published in International Journal of Electronic Commerce, Journal of Computer-Mediated Communication, Decision Support Systems, Journal of Service Research, and other journals.