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ABSTRACT
This article presents an exploratory study of a conceptual model of perceived customer value in a business-to-consumer e-commerce setting. Key precursors of perceived customer value included in the model are valence of on-line shopping experience, perceived product quality, perceived risk, and product price. Relationships among these variables (as well as mediating variables) and their relationship to on-line shoppers' value perceptions are explored. The theoretical framework proposed in this work expands on previous efforts on perceived customer value by including new variables relevant to an e-commerce setting and by integrating several key variables into one model. The preliminary findings lead to several implications. (c) 2003 Wiley Periodicals, Inc.
The business-to-consumer (B-to-C) on-line market has been growing rapidly over the past several years. According to the latest statistics from the U.S. Census Bureau, total e-commerce sales for 2001 were estimated at $32.6 billion, an increase of 19.3% from 2000, and total retail sales in 2001 increased 3.3% from 2000. Recent work shows that consumers have increasingly favorable attitudes toward on-line shopping (Lohse, Bellman, &Johnson, 2000). Buying on-line is thus becoming more acceptable to many people. Indeed, the Internet population is beginning to mirror the general population (e.g., Ernst &Young, 2001; Korgaonkar &Wolin, 1999; Lohse et al., 2000).
Thus, to consumers, the bene.ts of the Internet are tremendous. As an alternative channel, Web shopping is convenient and time saving; with rich, free information available, consumers can easily compare prices and product features across suppliers. By empowering consumers, the Internet has also raised consumers' expectations of retailers. Indeed, they seemingly expect from on-line shopping as much as, or even more than, what they expect from other alternate channels.
Previous work on Web shopping, though, has raised e-retailers' concerns about the low purchasing rate and moderate overall satisfaction of on-line shoppers (e.g., Jarvenpaa &Pike, 1996-1997; Moon &Frei, 2000). A low barrier to entry has brought more players into the retail business, so competition in B-to-C commerce has intensi.ed (Porter, 2001). Because consumers now have more bargaining power, lower switching costs, and an increased number of choices available, understanding what leads to on-line shoppers' purchase intentions has become an even more important topic meriting research attention, especially given the demise of many dot.com .rms (e.g., Barsh, Crawford,& Grosso, 2000)....