Beruflich Dokumente
Kultur Dokumente
An Empirical Study of
Malaysian Consumers
Channel-switching Intention:
Using theory of Planned Behaviour
Abdolrazagh Madahi1
Inda Sukati2
Abstract
The purpose of the current study is to examine the effect of behavioural attitude, subjective norm
(SN) and perceived behavioural control (PBC) on channel-switching intention in regards to Internet
and brick-and-mortar stores channels in Malaysia. Theory of planned behaviour (TPB) was used in this
study. Partial least squares (PLS) based on the structural equation modelling (SEM) technique was used
to analyze the data. The study was based on the simple random sampling, with the survey instrument
administered to the Malaysian consumers from the regions of Klang Valley and Penang. A total of
497 completed surveys were obtained. The respondents had to meet the criteria of shopping online
and/or brick-and-mortar store prior to participating in the survey. Findings have shown that the TPB
was successful in predicting consumer channel-switching intention. In addition, based on the results,
the main constructs including attitude and SN significantly and positively predicted consumers channelswitching intention in both channels. Perceived behavioural control was the only construct that did not
predict intention.
Keywords
Channel-switching intention, theory of planned behaviour, Internet, brick-and-mortar store, Malaysia
Introduction
Internet World Stat stated that the number of Internet users in Malaysia was 17,723,000 (60.7 per cent)
in 2012. Meanwhile, the increase of Internet users from 2000 to 2012 was 376.8 per cent (http://www.
internetworldstat.com). Shopping via Internet is a common occurrence in the Western countries, but for
Senior Lecturer, Payame Noor University, International Center of Qeshm, Hormozgan, Qeshm Island, Iran.
Senior Lecturer, Faculty of Management, Department of Business Administration, Universiti Teknologi Malaysia, Johor Bahru,
Johor, Malaysia.
1
2
Corresponding author:
Abdolrazagh Madahi, Senior Lecturer, Payame Noor University, International Center of Qeshm, Hormozgan, Qeshm Island 7956118414, Iran.
E-mails: amadahi65@gmail.com; khosoof_emaddeh@yahoo.com
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Malaysia, it is very challenging and majority of Malaysians prefer traditional shopping. In Malaysia,
online shopping is something new and the transactions are very limited. Syed, Ismail and Ahsan (2008)
noted that the growing utilization of Internet by the younger generation in Malaysia offers an emerging
opportunity for online retailers. If online retailers know the factors influencing young Malaysian
consumers shopping behaviour, and the relationship between these factors and the type of online
shoppers, they can further develop their marketing strategies to convert potential customers into active
ones. Thus, with a large number of Internet users in Malaysia, it is necessary to find out the factors
that shape Malaysian online shopping behaviours and to develop more studies in this area. Therefore,
Internet as a new retailing channel in Malaysia plays an important role in the channel switching and
multichannel environment, and this needs further consideration from retailers. Likewise, marketers
and retailers need to find out what is important for customers in selecting/switching a channel/
multichannel in order to settle on a suitable channel strategy and to manage resource allocation. From a
marketing point of view, synchronizing multiple channels deeply enhances the difficulty of a marketing
strategy and it would have an effect on consumers multichannel behaviour.
Channel switching and multichannel retailing strategies offer some advantages to the retailers and
companies with two or more channels to send their services or/and products to the consumers. It would
also be more interesting and valuable for customers to choose from more than one channel to seek for
information and purchase their products. Consumers choose and use channels based on their specific
goals at a particular point in time, their prior experiences and their expertise (Wesley & Eisenstein,
2008). A number of multichannel studies suggest that channel choice is not static but changes over time,
as consumers migrate from one channel to another (Albesa, 2007; Black, Lockett, Ennew, Winklhofer &
McKechnie, 2002; Dholakia, Zhao & Dholakia, 2005; Gupta, Su & Walter, 2004). Besides, consumers
may switch from one channel to another in order to find ways to maximize the benefits of shopping and
minimize the costs associated with shopping, in terms of money, time and energy, whether in a brickand-mortar store, or over the Internet (Downs, 1961; Kim & Kang, 1997). In addition, customers would
prefer to migrate from online channels to offline channels and vice versa according to their behavioural
factors (e.g., attitude, beliefs, as well as perceived behavioural control [PBC]) of a channel. Therefore,
it is important for retailers to not only get knowledge about the benefits and costs of the channels, but
also they need to know more about the consumers.
Moreover, consumers may search for product information online but prefer to buy it in a traditional
store (Albesa, 2007; Balasubramanian, Raghunathan & Mahajan, 2005; Van, Minocha & Laing, 2007).
They may find it easy to make a search about product information through the online channel of A-retailer
but do their purchase from B-retailer through the offline channel (Kim & Lee, 2008; Shim, Eastlick, Lotz
& Warrington, 2001; Verhoef, Neslin & Vroomen, 2005). This would result in a sort of difficulty for the
retailer to retain customers due to the switching situation (Jensen, Jakus, English & Menard, 2004;
Kumar & Venkatesan, 2005; Stone, Hobbs & Khaleeli, 2002). Thus, the concept of buying and switching
intention concerning up-to-date consumers has become a major issue to marketers and retailers
(Albesa, 2007; Kumar, Shah & Venkatesan, 2006; Noble, Griffith & Weinberger, 2005; Pookulangara,
Hawley & Xiao, 2011). Information technology has made people use the Internet in conducting their
transactions rather than the traditional way of trading (Fuller, Serva & Benamati, 2007). Furthermore, it
is possible that multiple channels retailers meet the desires of customers flexibility for how, where,
when and what to shop (Kumar & Venkatesan, 2005; Stone et al., 2002). The challenge is to recognize
when, how and where consumers utilize the stores and/or Internet and how consumers consider migrating among channels and among retailers (Albesa, 2007; Bickle, Buccine, Makela & Mallette, 2006;
Kumar & Venkatesan 2005). The purpose of this study is to examine channel-switching intention between
Malaysian consumers in the Internet and brick-and-mortar stores channels by applying the theory of
491
planned behaviour (TPB). Theory of planned behaviour has been used in studies that have examined
multichannel consumer behaviour (Grabner-Krauter & Kaluscha, 2003; Kamarulzaman, 2008; Keen,
Wetzels, Ruyter & Feinberg, 2004; Wen, Prybutok & XU, 2011) as well as channel-switching behaviour
(Kim & Park, 2005; Pookulangara & Natesan, 2010; Pookulangara et al., 2011). Thus, using TPB is an
appropriate and acceptable theory for studying consumers channel-switching intention.
Literature Review
There is an opportunity for consumers to choose only one organization to seek for information
(Dholakia & Uusitalo, 2000; Lihra & Graf, 2007), buy goods as well as return unwanted products by
selecting one of the following channels, for example, Internet and brick-and-mortar stores (Kumar &
Venkatesan, 2005). For that reason, it is very significant for multiple channel retailers to understand and
perceive how their consumers behave and to know the issues, in particular, the purchase incentive that is
under this behaviour. In this way, it is more possible for retailers to classify different groups of consumers and it will diminish the losses related to non-selective coverage (Schroder & Zaharia, 2008).
Multichannel consumers are defined as those who regularly shop through more than a single channel
(Kumar & Venkatesan, 2005). Multichannel shoppers are important for retailers success because
they are more open to new experiences, purchase more frequently and are more loyal to a brand
(Pastore, 2001). Several researchers have conducted studies related to consumers online shopping
behaviours in a multichannel shopping context (Choi & Park, 2006; Kim & Park, 2005; Kim, Kim &
Kumar, 2003; Noh, 2008). They have found that multichannel consumers behaviours provide a number
of chances to increase the sales and profits of multichannel retailers. Therefore, understanding multichannel consumer behaviours is crucial for multichannel retailers success (Dholakia, Zhao & Dholakia,
2005; Mathwick, Malhotra & Rigdon, 2002).
A consumer may choose one channel but at the middle stage of his/her decision making process
may change the channel and use another one. Therefore, a consumer might migrate to another channel if
he/she is not happy with a current channel, which results in channel switching (Albesa, 2007;
Balasubramanian et al., 2005). An important issue of interest to both practitioners and academicians is
to find out consumers channel-switching behaviour (from online to offline and vice versa) and also to
recognize the major drivers which influence such behaviour (Gupta et al., 2004). For example, a client
may tend to switch to online channels in case his/her intention towards online purchase is better than
offline buying intention and vice versa. Necessarily, consumers declare their preferences according to
utility maximization when it comes to costs and benefits of the retail structures given to them (Alba
et al., 1997). It indicates that the utility gained by the clients through online shopping needs to be more
than the utility obtained through the traditional format, which causes the consumer to switch to an online
environment. This study recognizes the main behavioural determinants that affect consumers switching
tendency from shopping offline to the online one and vice versa.
Nowadays, the multichannel strategy is becoming more significant and crucial for both businesses
and consumers (Albesa, 2007; Baal & Dach, 2005; Dholakia, Zhao & Dholakia, 2005; Rangaswamy &
Bruggen, 2005). Retailers and companies should search for a multiple channels design that offer
channel advantages, due to the fact that each channel provides some degree of difference of benefits
(e.g., mutual communication between consumers and retailers, customer satisfaction, longer tenure and
consumers are more loyal to channel) (Black et al. 2002; Kumar & Venkatesan, 2005), but at the same
time, it also has complications and challenges (Van, Minocha & Laing, 2007). One of the challenges
is that retailers might lose their consumers in the path of the buying process (Inman, Venkatesh &
492
Rosellina, 2004; Nicholson, Clarke & Blakemore, 2002; Nunes & Cespedes, 2003). This is related to the
issue that consumers could easily move through channels. For example, they can seek information
through one channel (e.g., Internet), and after that buy the product across another channel (e.g., store)
(Pookulangara et al., 2011). For this reason, employing only one channel limits the performance in the
marketplace to what that channel is proficient in doing predominantly well (Johnson & Greco, 2003).
In spite of the growing attention which has been paid to multichannel-oriented topics, study on
multichannel retailing and channel-switching behaviour is still considered to be at its early stages.
As Neslin et al. (2006) and Slack, Rowley and Coles (2008) stated, previous research works on multichannel-based topics chiefly concentrated on attaining knowledge regarding the elements of customers
choice of channel. Very few studies have investigated customer channel migration in terms of multichannel retailing and the factors that affect consumers channel behaviour among different channels
in a multichannel environment (Ansari, Mela & Neslin, 2008). A study done by Choi and Park (2006)
has shown that there is a lack of knowledge concerning important predictors in terms of consumers
beliefs, attitudes and intentions for online as well as traditional stores shopping on the basis of multiple
channels and channel switching. According to Pookulangara et al. (2011), the study on consumer
channel-switching intention is still not sufficient and needs more research. Hence, the present study
investigates potential elements related to customer channel migration behaviour.
In addition, to convince and attract Malaysian consumers to use the Internet, as their retailing channel
instead of traditional channels, is still a challenging task for web retailers in Malaysia (Haque & Khatibi,
2005; Salehi et al., 2011). The development of Internet technology in Malaysia has massive opportunities such as its increasing benefits, decreasing costs of product and service delivery and expanding
geographical boundaries in bringing buyers and sellers together (Haque & Khatibi, 2005; Syed et al.,
2008). Salehi et al. (2011) reported that the acceptance of the Internet channel among Malaysian consumers is not as advanced compared to their counterparts in other countries. The question is why? In
addition, what are the factors that influence their acceptance? The other challenge is to understand how
and when Malaysian consumers use the Internet, and what drives their propensity to switch between
retailers and between channels. There are some barriers, which have contributed to the unwillingness of
the Malaysian people to shop online, like being afraid of their personal information being stolen by
others (Salehi, 2012). Despite the potential among Malaysian consumers, there is still a lack of understanding towards online shopping. Meanwhile, Haque and Khatibi (2005) and Mumtaz, Islam, Ariffan
and Karim (2011) stated that studies regarding consumer behaviour by using of behavioural models
(e.g., theory of reasoned action [TRA] and TPB) towards online shopping in the Malaysian environment are still limited and also they claimed that Internet in Malaysia is still considered as a new
medium between the retailers and the consumers.
Theory of planned behaviour is a well-known theory to evaluate and examine consumers behaviour
and channel-switching behaviour in online and/or offline channels. The effect of components of TPB
on channel choice/switching is different (Pookulangara et al., 2011). Some factors in some channels
may significantly affect consumers channel-switching behaviour, but in contrast, some other channels
may have no influence on consumers channel-switching behaviour. Meanwhile, the purpose of this
article is to study on Malaysian consumers channel-switching intention. Thus, Haque and Khatibi
(2005), Harn, Khatibi and Ismail (2006) and Mumtaz et al. (2011) stated that studies regarding consumer
behaviour by using behavioural models (e.g., TRA and TPB) for online shopping in the Malaysian
environment are still limited and also they claimed that Internet in Malaysia is still considered as a
new medium between the retailers and the consumers. Therefore, the objective of this study is to
identify factors that are significant in explaining Malaysian consumers channel-switching behaviour.
This study is based on the TPB, a theory well grounded in consumer behaviour research, and we
used Malaysia as the sampling frame.
493
Study Variables
The objective of the current study is to predict consumers channel-switching behaviour with regard to
any of the two channels (i.e., Internet and brick-and-mortar stores). The impact of relative advantage,
compatibility and complexity on attitude towards channel-switching intention was examined. The effect
of NB (i.e., friends, family and co-workers) on SN, self-efficacy and facilitating conditions on PBC
towards channel-switching intention in both channels was studied. The relationship between variables,
via the research model, is organized in the following section (Figure 1).
494
intention to shop online, Chen, Gillenson and Sherrell (2002) found that higher perceived relative
advantage (perceived usefulness) resulted in a more favourable attitude towards online shopping.
Compatibility is the degree to which the innovation fits with the positional adapters existing
values, previous experiences and current needs (Rogers, 1983). Compatibility is likely to be positively
connected to adoption. Tan and Teo (2000), in their study on adoption of Internet banking in Singapore,
suggested that users who perceive Internet banking as compatible to their values developed positive
attitude about the technology and were more likely to adopt it. In an exploratory study comparing adopter
and non-adopter beliefs about Internet banking, Gerrard and Cunningham (2003) suggested the need
for banks to highlight positive characteristics of the technology such as compatibility to encourage
its usage. They found that the adopters of Internet banking felt the technology was more compatible to
their lifestyle. Finally, in a study involving 82 brokerage firms, Lau (2002) found that compatibility had
a significant effect on attitude of using online trading.
Complexity signifies the degree to which an innovation is perceived to be complicated to understand,
learn or operate (Rogers, 1983). In general, the simpler an innovation is to realize and utilize, the more
likely that it will be adopted. Complexity (and its corollary, ease of use) has been found to be a significant factor in a technology adoption decision (Davis, 1989; Moore & Benbasat, 1991; Taylor & Todd,
1995). It should expect channel that is easy to use would encourage individuals to utilize the channel by
developing a positive attitude about it. Previous studies have indicated that if technology is complicated
495
and complex to use, the impact of complexity on attitude will be negative (Beiginia, Besheli, Ahmadi &
Soluklu, 2011; Moore & Benbasat, 1991). In addition, the effect of perceived ease of use on attitude
has been theorized and validated by numerous studies. In a cross-sectional study on potential adopters
and users of Microsofts Windows 3.1, Karahanna, Straub and Chervany (1999) found that perceived
ease of use had a significant influence on attitude towards adopting the software among the potential
adopters. Laus (2002) study on online trading revealed the significant influence of perceived ease of
use on attitude. A similar result was also revealed in the study by other researchers (e.g., Bhattacherjee,
2000; Taylor & Todd, 1995).
Moreover, Haque and Khatibi (2005) and Mumtaz et al. (2011) demonstrated that online shopping
was still not compatible with Malaysian consumers. In fact, a majority of Malaysians use the Internet for
non-shopping purposes. In line with the argument and findings discussed, brick-and-mortar store is the
channel which is compatible with a majority of Malaysian consumers. In addition, it would be expected
that Malaysians who perceive relative advantage and compatibility of the Internet channel would
more likely have a positive attitude towards using the technology. Taylor and Todd (1995) illustrated
that according to prior empirical study on the correlations among these perceived characteristics
(Rogers, 1983; Tornatzky & Klein, 1982), it would be likely that relative advantage and compatibility
are positively associated to attitude. On the other hand, Beiginia et al. (2011) found out that relative
advantage and complexity have a positive effect on attitude (Figure 1).
496
channels acceptance of those who are closest to them. Based on the results of the studies discussed
above, three reference groups are identified (i.e., friends, family and co-workers) who may affect
individuals perceived social pressure (i.e., SN) on whether to switch or not to switch the channel.
497
498
Method
The survey method in the form of Likert scale questionnaire has been widely used in marketing
research (Kim et al., 2003; Sadeghi & Hanzaee, 2010; Sierra & McQuitty, 2005; Yoon, Lee & Lee, 2010;
Yousafzai, Pallister, & Foxall, 2005; Yuksel, Yuksel & Bilim, 2010). This study adopted/adapted the
questions from Pookulangara et al. (2011), Pookulangara and Natesan (2010), Ajzen and Fishbein
(1980), George (2004), Beiginia et al. (2011), Taylor and Todd (1995), Yang, Park and Park (2007),
Verhoef et al. (2005), Sproles and Kendall (1986), Mokhlis and Salleh (2009), Noble, Griffith and
Weinberger (2005), Smith et al. (2008), Elliott and Ainsworth (2012) and Ajzen (2002). According to
the aim of the current study, questionnaire was distributed among Malaysian consumers. To assess
and estimate the intention of consumers, components scales have been followed by the recommendations of Ajzen and Madden (1986).
To assess relative advantage, compatibility and complexity, items were adapted from Taylor and
Todd (1995) and Beiginia et al. (2011). Ten items are developed to examine the impact of relative advantage, compatibility and complexity on attitude. Six items to assess NB (friends, family and co-workers)
are adapted from Pookulangara et al. (2011), Ajzen and Fishbein (1985), Pookulangara and Natesan
(2010) and George (2004). To assess the effect of self-efficacy and facilitating condition (i.e., price and
information) on PBC, ten items are adapted from Chiu et al. (2011), Pookulangara et al. (2011), Eastlick
and Feinberg (1999), Noble, Griffith & Weinberger (2005) and Dickerson and Gentry (1983).
Attitude has been adapted based on the instrument applied and validated by Pookulangara et al.
(2011) and Yang et al. (2007). According to the report of Pookulangara et al. (2011), behavioural
attitude for brick-and-mortar stores and the Internet were conceptualized and was calculated by a fouritem scale. Items to evaluate SN were adapted from the instrument used by Verhoef et al. (2005) and
Pookulangara et al. (2011). Subjective norm was conceptualized brick-and-mortar stores and Internet
and was measured via a five-item scale (Pookulangara et al., 2011). Three items were adapted to assess
PBC from the instrument used and validated by Pookulangara et al. (2011).
499
respondents in different universities and retail outlets including supermarkets, small retail stores, departmental stores, specialty stores, hypermarkets, malls as well as libraries. These places cover the target
population of this study and help to find different people in different fields. The objective of the current
study is to evaluate consumer channel-switching intention between Malaysian consumers; hence, the
race of population is Malaysian only (including Malay, Chinese and Indian).
Data Analysis
The purpose of this study is to investigate the influence of behavioural attitude and SN and PBC on
channel-switching intention. Theory of planned behaviour is used in the current research. The partial
least square (PLS) based on structural equation modelling (SEM) technique was used to test research
hypotheses as well as research model as suggested by other researchers who have studied based on the
behavioural models such as TPB and TRA models (Blue, Wilbur & Marston-Scott, 2001; Bock, Lee,
Zmud & Kim, 2005; Chang, 1998; Lin & Lee, 2004; Millar & Shevlin, 2003; Ryu, Ho & Han, 2003).
The SEM is a technique that seeks to represent the observed data in terms of a number of structural
parameters defined by a hypothesized underlying model (Hair, Ringle & Sarstedt, 2011). Structural
equation modelling is a theory-based approach that has the ability to bring data and theory together.
Structural equation modelling is used in business and marketing studies to empirically test the complex
models. This study also used the SEM approach to test the research hypotheses and data analysis. Unlike
other statistical methods, SEM tests the model paths and model fit. Structural equation modelling also
allows the assessment of complex interrelated dependence relationships and incorporates the effects
of measurement error on the structural coefficients (Hair, Anderson, Tatham & Black, 1998). In SEM,
two types of variables are used: exogenous variables and endogenous variables. Therefore, since in this
study there are some exogenous variables (i.e., relative advantage, compatibility, complexity, NB, facilitating conditions, self-efficacy, attitude, SN and PBC) and their effect on the endogenous variable
(i.e., channel-switching intention) has to be examined, the use of SEM is necessary. Pilot testing was
conducted to clarify the terms used in the questionnaire before operating the main survey.
The survey instrument was pre-tested for content validity and adjustments were made prior to main
data collection. The survey instrument was pre-tested with consumers (N = 30). It was assumed that
these consumers had used at least one channel (i.e., brick-and-mortar store and/or the Internet) in the
last 6 months. These consumers were comprised of professors and senior lecturers at the University
of Malaysia (UM) and Universiti Putra Malaysia (UPM). Based on feedback from the pilot study
group, minor adjustments were made to the instrument scale. This feedback was implemented into the
instrument and content validity claim was established accordingly. Items were revised to ensure
readability and for logical flow of questions. The results of the data analyses were organized into the
following sections: (i) respondents profile, (ii) measurement model and (iii) structural model.
Respondents Profile
With reference to Table 1, a remarkable percentage of the respondents (57.9 per cent) are less than
34 years old. In addition, majority of the respondents are females. There are 283 female respondents
(56.9 per cent) and 214 male respondents, which contributes to 43.1 per cent of the total respondents
participated in this study. Of these respondents, 51.1 per cent of the respondents are Malay, followed by
500
Frequency (N = 497)
Percentage
172
116
74
68
48
19
34.6
23.3
14.9
13.7
9.7
3.8
214
283
43.1
56.9
254
142
101
51.1
28.6
20.3
287
168
42
57.7
33.8
8.5
Age
1824
2534
3544
4554
5564
65+
Gender
Male
Female
Race
Malay
Chinese
Indian
Education Level
Bachelors Degree
Masters Degree
Doctoral Degree
Source: Researchers own construction.
28.6 per cent Chinese and 20.3 per cent Indian. Table 1 further indicates that 57.7 per cent of the
practitioner possess bachelors degree, 33.8 per cent possess masters degree and 8.5 per cent possess
doctoral degree.
Channel
Frequency
Percentage
Internet
Store
Internet
Store
327
444
194
488
65.8
89.3
39
98.2
501
Measurement Model
The PLS technique is capable of calculating key output such as factor loadings, Cronbachs alpha,
composite reliabilities (CRs) and average variance extracted (AVE) to establish the validity and reliability (Fornell & Cha, 1994). We ran a confirmatory factory analysis in SmartPLS 2.0 and assessed
reliability and convergent validity for the reflective constructs. In order to examine the construct validity,
first, the standardized estimated loading should be ideally higher than 0.7 (Hair et al., 1998). Validity and
reliability are evaluated by computing cross loadings, AVE, CR and Cronbachs alpha (Bagozzi & Yi,
1988). The general acceptable cut-off values are 0.50 for AVE and 0.70 for both CR and Cronbachs
alpha (Bagozzi & Dholakia, 2002; Churchill, 1979; Fornell & Larcker, 1981; Hair et al., 1998). Thus,
based on CR and AVE, data reduction techniques were applied to the variables in order to convert the
individual variable items into manageable smaller number of dimensions.
Internet
All measurement variables with loadings under 0.70 were removed. This included the removal of the
first item of complexity as well as two items of NB. After excluding these items, factors were computed
again. In addition, Cronbachs alphas were well above the acceptable level ranging from 0.71 to 0.94 for
relative advantage, compatibility and complexity, NB with 0.95, information with 0.95, price with
0.95, self-efficacy with 0.84, attitude with 0.93, SN with 0.96, PBC with 0.92 and channel-switching
intention with 0.94. In addition, CR was 0.97, 0.98, 0.87, 0.96, 0.96, 0.97, 0.91, 0.96, 0.97, 0.95 and 0.96
for relative advantage, compatibility, complexity, NB, information, price, self-efficacy, attitude, SN,
PBC and intention, respectively (Table 3). Therefore, based on Cronbachs alpha and CR, all these latent
variables regarding Internet channel had reliability higher than 0.7. In addition, AVE was 0.88, 0.94,
0.78, 0.86, 0.87, 0.92, 0.76, 0.87, 0.87, 0.86 and 0.89 for relative advantage, compatibility, complexity,
NB, information, price, self-efficacy, attitude, SN, PBC and channel-switching intention, respectively.
These measurements were well above the 0.50 recommended levels (Fornell & Larcker, 1981). These
results indicated that the constructs associated with outer measurement models exhibited satisfactory
convergent validity.
Table 3. Factor Analysis and Reliability
Internet
Measurement
Variables
Relative Advantage (RA)
RA1
RA2
RA3
RA4
Compatibility (Compt)
Compt1
Compt2
Compt3
Factor
Loading
a
0.95
Brick-and-mortar Store
Average
Composite Variance
Reliability Extracted
0.97
0.88
0.944
0.946
0.929
0.933
Average
Composite Variance
Reliability Extracted
0.94
0.96
0.86
0.97
0.98
0.94
0.878
0.939
0.948
0.934
0.97
0.969
0.973
0.966
Factor
Loading
0.98
0.94
0.966
0.980
0.963
(Table 3 continued)
502
(Table 3 continued)
Internet
Measurement
Variables
Complexity (Complx)
Complx1
Complx2
Complx3
Normative Belief (NB)
NB1
NB2
NB3
NB4
NB5
NB6
Information (Info)
Info1
Info2
Info3
Info4
Price
Price1
Price2
Price3
Self-efficacy (S.Eff)
S.Eff1
S.Eff2
S.Eff3
Attitude
Attitude 1
Attitude2
Attitude3
Subjective Norms (SN)
SN1
SN2
SN3
SN4
SN5
Perceived Behavioural
Control (PBC)
PBC1
PBC2
PBC3
Channel-switching
Intention (CSI)
CSI1
CSI2
CSI3
Factor
Loading
a
0.71
Brick-and-mortar Store
Average
Composite Variance
Reliability Extracted
0.87
0.78
Average
Composite Variance
Reliability Extracted
0.79
0.87
0.77
0.97
0.98
0.89
0.90
0.95
0.91
0.94
0.96
0.89
0.92
0.95
0.87
0.97
0.98
0.94
0.96
0.97
0.93
0.89
0.93
0.82
0.90
0.93
0.83
0.993
0.331*
0.742
0.438*
0.893
0.868
0.95
0.96
0.86
0.907
0.952
0.953
0.905
0.509*
0.485*
0.928
0.943
0.959
0.955
0.948
0.918
0.95
0.96
0.87
0.911
0.938
0.949
0.933
0.647*
0.948
0.962
0.640*
0.95
0.97
0.92
0.959
0.954
0.958
0.912
0.958
0.952
0.84
0.91
0.76
0.841
0.912
0.866
0.913
0.950
0.933
0.93
0.96
0.88
0.944
0.962
0.914
0.966
0.981
0.967
0.96
0.97
0.87
0.916
0.946
0.951
0.935
0.918
0.962
0.977
0.578*
0.947
0.521*
0.92
0.922
0.941
0.915
Factor
Loading
0.94
0.95
0.96
0.942
0.957
0.934
0.86
0.89
0.912
0.958
0.952
0.923
0.915
0.890
503
Brick-and-mortar Stores
Based on the factor loading analysis, one indicator of complexity and two indicators of SN were revealed
(items less than 0.7) and software was ran again to compute better reliability for each construct. Thus, all
factors loaded were standardized (Table 3). Cronbachs alpha was 0.94, 0.97, 0.79, 0.97, 0.97, 0.96, 0.89,
0.96 and 0.90 and CR was 0.96, 0.98, 0.87, 0.98, 0.98, 0.97, 0.93 and 0.93 for relative advantage, compatibility, complexity, NB, attitude, SN, PBC and channel-switching intention, respectively. These
results approved reliability of these constructs. High score of AVE shows the convergent validity for
relative advantage, compatibility, complexity, NB, information, price, self-efficacy, attitude, SN, PBC
and channel-switching intention (AVE was in the range from 0.86, 0.94, 0.77, 0.89, 0.91, 0.89, 0.87,
0.94, 0.93, 0.82 and 0.83, respectively) (Table 3).
Structural Model
PLS can evaluate theoretical hypotheses as well as indicate the existence of relationships for further
testing (Chin, Marcolin & Newsted, 2003). Partial least squares can be used in estimating latent structural models that are indirectly observed by multiple indicators for theory testing and development as
well as offering predictive applications (Anderson & Gerbing, 1998). The focus of the assessments
of structural paths in PLS is on the inner model and the significance of the paths can be measured by
bootstrapping critical ratios.
In the structured model of this study, all constructs had reflective items, as depicted in Figures 2
and 3. The significance of the reflective outer-measurement model via bootstrapped t-values of item
loadings was assessed. The bootstrapping method of sampling was used to estimate the precision
of the reflective outer-measurement models. Bootstrap t-values were computed on the basis of 500
bootstrapping runs. The model parameters as depicted in Figures 2 and 3 were estimated using the
SmartPLS with the focus here on the inner results as they relate directly to the hypotheses. Thus, an
examination for each exogenous and endogenous constructs of the model was undertaken via path weight
coefficients, standard error, R2 and bootstrap critical ratios (t-values).
The primary evaluation criteria for the structural model are the R measures and the level and
significance of the path coefficients (Lohmller, 1989). Because the goal of the prediction-oriented
PLS-SEM approach is to explain the endogenous latent variables variance, the key target constructs
level of R should be high (Lohmller, 1989). The judgement of what R level is high depends, however,
on the specific research discipline (Hair et al., 2011), whereas R results of 0.20 are considered high in
disciplines such as consumer behaviour (Hair et al., 2011).
With the collected data from the survey, consumer channel-switching behaviour is predicted
in regards to the Internet and brick-and-mortar stores channels. All the dimensions are included
in the final data analysis, except for the three dimensions for Internet channel (first item of complexity
and items five and six of NB). Also five dimensions for brick-and-mortar stores (second item of
complexity, first and last items of information and third and fifth items of SN) were removed because
of factor loadings less than 0.7. After these low items were extracted, factors were analyzed again
and sufficient supports of reliability and validity of the measurement scales were achieved. As the
measurement assessment supported the validity and reliability of measured items, a series of hypothesis
tests proposed in the model are followed using SmartPLS techniques.
504
Figure 2. Channel-switching Intention Using the TPB Model: Research Model for Channel-switching Behaviour
(Internet)
Source: Researchers own construction.
Notes: * p < 0.1; ** p < 0.05; *** p < 0.01.
505
Figure 3. Channel-switching Intention Using the TPB Model: Research Model for Channel-switching Behaviour
(brick-and-mortar stores)
Source: Researchers own construction.
Notes: * p < 0.1; ** p < 0.05; *** p < 0.01.
506
Predictor Variables
Hypothesis
Path
Weight
Standard
Error
Attitude
Relative Advantage
Compatibility
Complexity
Normative Belief
Information
H1a
H2a
H3a
H4a
H5a
0.09
0.37***
0.36***
0.59***
0.19**
0.06
0.08
0.05
0.04
0.07
1.40
4.90
7.77
16.12
2.51
Price
Self-efficacy
Attitude
H6a
H7a
H8a
0.11*
0.36***
0.22***
0.07
0.05
0.05
1.71
7.79
4.43
Supported
Supported
Supported
Subjective Norm
H9a
0.41***
0.06
6.35
Supported
Perceived
Behavioural Control
H10a
0.03
0.04
0.68
Not Supported
Subjective Norm
Perceived
Behavioural Control
Channel-switching
Intention
Channel-switching
Intention
Channel-switching
Intention
t-values
Not Supported
Supported
Supported
Supported
Supported
507
Predictor Variables
Attitude
Relative Advantage
Compatibility
Complexity
Subjective Norm
Normative Belief
Perceived Behavioural Information
Control
Price
Self-efficacy
Channel-switching
Attitude
Intention
Channel-switching
Subjective Norm
Intention
Channel-switching
Perceived
Intention
Behavioural Control
Hypothesis
Path
Weight
Standard
Error
t-Values
H1b
H2b
H3b
H4b
H5b
0.44***
0.36***
0.03
0.80***
0.30***
0.08
0.08
0.02
0.02
0.06
5.70
4.45
1.37
39.48
5.14
H6b
H7b
H8b
0.30***
0.22***
0.33***
0.05
0.04
0.07
5.57
5.20
4.57
Supported
Supported
Supported
H9b
0.29***
0.06
4.71
Supported
H10b
0.01
0.04
0.08
Not Supported
Supported
Supported
Not Supported
Supported
Supported
508
advantage, compatibility and complexity are three exogenous constructs which differently predicted
attitude towards channel-switching intention in both channels (Internet and brick-and-mortar stores).
The significant effect of relative advantage on attitude towards channel-switching intention from
brick-and-mortar stores to Internet is not surprising given the fact that the extrinsic benefits of using
Internet channels are numerous for those consumers who prefer online shopping. Some of the benefits
are faster and convenient execution of online transactions, lower economic cost (reduced commuting and
time saving), convenient online access to product information, etc. The results of this study imply that
individuals form positive attitude towards channel-switching intention from stores to use Internet
because of these benefits. The significant effect of attitude on intention found in this study and also in
other studies (Ajzen & Fishbein, 1985; Pookulangara et al., 2011; Shim et al., 2001) implies that before
individuals start using the Internet channel, a positive attitude towards the technology needs to be formed.
The benefits, such as convenient and economic gains as well as time saving, can be highlighted as
positive features of the Internet channel (Jepsen, 2007; Morton, Zettelmeyer & Silva-Risso, 2001;
Ratchford, Lee & Talukdar, 2003; Zettelmeyer, Morton & Silva-Risso, 2006). Retailers and marketers in
Malaysia should continue publicizing these benefits so that customers and potential customers will
develop a positive attitude towards the Internet channel.
The linkage between compatibility and attitude has also been found in other studies (e.g., Rogers,
1983; Taylor & Todd, 1995; Tornatzky & Klein, 1982). This finding suggests that a positive attitude
towards channel-switching intention in the Internet and brick-and-mortar stores channels can be developed by highlighting the compatibility of the technology as well as traditional stores with individual
existing values and needs. Communicating, working and entertaining online and stores shopping reflect
the current and future lifestyle. Some of the consumers prefer online shopping due to the fact that they
are accessed to more and faster product information through Internet channel. On the other hand, some
of the consumers change channel from Internet to store because they are more comfortable with
store and the traditional channel is more compatible with most of Malaysian consumers lifestyle. In
addition, some of the consumers use both Internet and brick-and-mortar stores channels to decrease
cost of shopping (e.g., consumers searching for information through online and purchase in a store).
As already mentioned, complexity significantly predicted attitude towards channel-switching intention from the Internet to brick-and-mortar stores, but did not affect attitude towards channel-switching
intention from store to the Internet channel. It shows that the Internet channel is still not very easy to use
for most of the Malaysian consumers and they preferred to switch channels from the Internet to stores
due to the complexity of the Internet channel. As a result, consumers change channel from the Internet
to stores because brick-and-mortar store is more compatible with their lifestyle and is easier to use. The
findings imply that retailers and marketers need to make the Internet channel easy to use; otherwise,
consumers will prefer to use the store channel.
One interesting aspect of this finding is the great effect of relative advantage compared to complexity
on attitude towards channel-switching intention from brick-and-mortar stores to the Internet. This suggests the significant role of relative advantage (usefulness) over complexity in influencing individuals
attitude to change channel from stores to the Internet channel. We believe, with respect to increasing
a positive attitude towards using the Internet channel, more stress should be put in emphasizing the usefulness of Internet channel. It does not mean that we should abandon the efforts to make the Internet
channel easy to use. It indicates a higher need to promote the usefulness (relative advantages) of the
online shopping and Internet channel over its complexity.
In the current study, NB (friends, family and co-workers) strongly predicted SN towards channelswitching intention in both the channels (Tables 4 and 5). Previous research works have indicated that
NB also directly and positively affects SN in both online and store purchase intention studies
509
(Bhattacherjee, 2000; Evans, Christiansen & Gill, 1996; Lim & Dubinsky, 2005). From a practitioner
standpoint, these findings suggest that there are three reference groups who influence an individual
to change channel from Internet to brick-and-mortar stores channel or from stores to Internet channel.
Thus, taking these reference groups into account, more effective advertising and promotional efforts
can be developed. The results underscore the importance of using positive testimonials from these
reference groups to promote either Internet or brick-and-mortar store channel.
Perceived behavioural control as an endogenous construct was predicted by self-efficacy and facilitating condition as exogenous constructs. Information was a significant exogenous construct for PBC
regarding channel-switching intention in both the channels. Previous studies have shown that consumer
information about product, services and channels would lead them to decide in order to choose a channel/
multichannel or otherwise (Klein, 1998; Swinyard & Smith, 2003). Besides, prior research works on
channel-switching behaviour indicated that consumers perceptions of channel switching were significantly affected by their knowledge and information about channels (Mathwick, Malhotra & Rigdon,
2002; Noble, Griffith & Weinberger, 2005; Verhoef et al., 2005). Based on the results, in this research,
the information affected PBC more significantly in regards to channel-switching intention from brickand-mortar stores to the Internet. It shows that if consumers have high availability of information
online, this will lead them to change channel from stores to the Internet. It can be also inferred that
Malaysian consumers knowledge and information about either Internet or brick-and-mortar stores
impacted on their decision to switch channels.
Perceived behavioural control was also influenced by price. Multichannel consumers are able to
compare price of channels and select the best one (Brooks, Kaufmann & Lichtenstein, 2008; Degeratu,
Rangaswamy & Wu, 2000). Previous studies have shown that consumers evaluate price of channels and
then choose/switch channel based on their findings (Grewal, Iyer, Krishnan & Sharma, 2003; Ramaprasad,
Douglas & Pillai, 2010). In addition, according to prior studies and in regards to associated cost with
collecting information of price comparison, the highest and lowest costly channels were brick-andmortar stores and Internet, respectively (Degeratu et al., 2000; Ramaprasad et al., 2010). However, in the
current research, price was positively associated with both the Internet and brick-and-mortar stores
channels, but findings have shown that price affected PBC more significantly in regards to channelswitching intention from brick-and-mortar stores to the Internet (Tables 4 and 5). It means that a high
product price and difficulty in terms of finding the lowest price in brick-and-mortar stores impacted
consumers PBC to change channel from stores to the Internet more significantly.
Self-efficacy is defined as concerned with judgments of how well one can execute courses of action
required to deal with prospective situations (Bandura, 1982). Self-efficacy is a persons judgement
about being able to perform a particular activity (Bandura 1977, 1982). Thus, self-efficacy reflects how
confident Malaysian consumers are about changing channel from brick-and-mortar stores to the Internet
and vice versa. Findings in this study have shown that self-efficacy was strongly and positively associated with PBC regarding channel-switching intention in both the channels. This finding implies
that efficacy or confidence to switch channel and use either Internet or brick-and-mortar stores channel.
In the case of Internet channel, among Malaysian consumers, lack of confidence in using a new software
may suggest an organizations need to provide additional training to their employees. The solutions
may not be so obvious. However, some suggestions are provided that might be used by retailers and
marketers to improve individuals self-efficacy towards using the Internet channel in Malaysia.
Attitude was an important predictor for both the Internet and brick-and-mortar stores channels.
Prior studies also supported that attitude significantly and positively impacted consumers intention
(Ajzen, 1991; Rhodes & Courneya, 2003; Shih & Fang, 2004; Shim et al., 2001). Malaysian consumers
changed channels from the Internet to brick-and-mortar stores and vice versa when a channel is
510
not favourable. The results of the study confirmed the role of attitude towards consumers channelswitching intention in regards to both the channels. This result is in line with previous findings of the role
of attitude towards online and offline consumers shopping behaviour and consumers channel-switching
behaviour (Abdul-Muhmin, 2011; Gopi & Ramayah, 2007; Kim & Park, 2005; Pookulangara & Natesan,
2010; Pookulangara et al., 2011; Shim et al., 2001; Wang, Chen, Chang & Yang, 2007). As discussed
earlier, relative advantage, compatibility and complexity differently affected attitude in the Internet
and brick-and-mortar stores channels. Retailers and marketers need to pay attention to these factors as
well as on attitude itself to find out how consumers behavioural attitude is influenced by these factors
and how attitude affects consumers channel-switching intention to whether switch channel from the
Internet to brick-and-mortar stores and vice versa.
Moreover, research works on relationship between SN and intention have shown different results.
Some of the researchers indicated that SN did not predicted intention in their studies and some other
investigators claimed that there is a strong and significant association between SN and consumers intention (Chau & Hu, 2001; Mathieson, 1991; Venkatesh & Davis, 2000). The statistical results were, in
general, consistent with the previous findings related to the stores and online shopping intention of consumers channel-switching intention (Nicholson et al., 2002; Pavlou & Fygenson, 2006; Pookulangara et
al., 2011; Ramayah et al., 2003). The results showed that SN had a significant influence on consumers
channel-switching intention. Thus, based on the findings of this research, Malaysian consumers are significantly influenced by judgement of other significant factors in order to switch channel from the
Internet to brick-and-mortar stores and vice versa.
Perceived behavioural control is the third component of TPB that predicts intention. Perceived
behavioural control refers to peoples perception of the ease or difficulty of performing the behaviour
of interest. In other words, it is an individuals confidence in his/her ability to perform the behaviour
intention based on the presence or absence of requisite resources and opportunities (Ajzen & Madden,
1986; Mathieson, 1991). Previous studies have claimed that consumers who perceived more capabilities
or ease are more likely to act on an intention and switch from one channel to other or be loyal with a
channel (Hsieh & Liao, 2011; Johnson et al., 2004; Shim et al., 2001; Wang et al., 2007). The results of
this study revealed that PBC did not predict channel-switching intention in both the Internet and brickand-mortar channels. Regarding consumers channel-switching intention, it can be inferred that when
Malaysian consumers perceived power, control beliefs and feel able to change channel from the Internet
to brick-and-mortar stores and vice versa, they are less likely to do so. These results are in line with
the findings of Pookulangara et al. (2011) (in the case of switching channel intention from the Internet
to stores/catalogue channel) and Lim and Dubinsky (2005) (an investigation on online shopping).
This study presents an investigation on consumers channel-switching intention in regards to two
channels (i.e., the Internet and brick-and-mortar stores) in Malaysia. In view of this, an imperative
theoretical contribution of this research is to study and develop the understanding of Malaysian
consumers channel-switching behaviour by applying TPB. Academically, this study extends the application of the TPB model to consumers channel-switching behaviour in Malaysia. This research is also
important because the study on consumers channel-switching behaviour is still new and needs further
investigation (Choi & Park, 2006; Kim & Park, 2005; Pookulangara et al., 2011). On the other hand,
the numbers of multichannel consumers are rising; hence, it is necessary to study consumer channelswitching behaviour with regard to the Internet and/or brick-and-mortar stores channels (Pookulangara
et al., 2011). In addition, since this study is carried out in Malaysia, the current study extends the existing
body of knowledge related to the TPB. Indirectly, the current research examines the robustness of the
theory in its capability to measure adoption intentions within different sampling frames. Finally, the
study has utilized a well-grounded theory and, therefore, contributed to our understanding of factors
that are relevant to the acceptance of consumers channel-switching behaviour in Malaysia.
511
This research decomposed the attitudinal structure of individuals intention to adopt consumers
channel-migrating behaviour by considering two channels (traditional stores and especially Internet as
a new technology). This provides more precise understanding of the antecedents of adoption (Taylor &
Todd, 1995). Better understanding of these factors assist retailers and marketing executives in determining which ones are important to their customers intention to adopt consumers channel-switching
behaviour in regards to Internet and brick-and-mortar stores channels. This also helps retailers and marketing executives to formulate strategies that could significantly affect channel-switching adoption
among their consumers. Many multichannel consumers among these two channels (i.e., Internet and
brick-and-mortar stores) in developing countries might share the same exposure, experience or go
through the same phase of progress in their channel-switching behaviour endeavours as consumers that
would change the channel from Internet to brick-and-mortar stores or vice versa as consumers channelmigrating behaviour in Malaysia. Since consumers in other developing countries may share the same
issues faced by the Malaysian consumers, it is expected that the finding from this research will
help retailers and marketing executives in other developing countries in understanding the consumers
channel-migrating behaviour by considering Internet and brick-and-mortar stores channels in the
current study as well.
512
Ryan & Bonfield, 1980). Findings of this research also confirmed that NB is a very strong predictor of
SN towards channel-switching intention in both the channels.
Furthermore, in the pure TPB model, the path from PBC to intention has failed to achieve significance. Ajzen and Madden (1986) claimed that the PBC is less likely to be related to intention. This
suggests that the relationship of PBC to intention is tenuous and merit further investigation. According
to the measurement of this study, PBC also did not predicted channel-switching intention in both
the channels. Additionally, two components were encompassed in the decomposed TPB model.
Both facilitating conditions (price and information) and self-efficacy were significant determinants of
PBC in this study. Price and information are known as facilitating conditions which predict PBC (Taylor
& Todd, 1995; Triandis, 1980). Previous studies have shown that facilitating conditions affected
PBC (Noble & Phillips, 2004; Park, Klein, Smith & Martell, 2009; Stigler, 1961; Yang et al., 2007). This
is also conformed in the current research. Taylor and Todd (1995) found that self-efficacy predicted
intention to use a wide range of technologically advanced products. Thus, an individual with a confident
command of computer skills and familiarity with the Internet is more inclined to adopt Internet banking.
Findings in this study indicated that self-efficacy affected PBC with respect to the Internet and
brick-and-mortar channels.
The results of this study show that attitude and SN significantly affected consumers channelswitching intention regarding Internet and brick-and-mortar stores channels. The successful validation
of these constructs on channel-switching intention demonstrates that the TPB model is well founded.
In addition, from the viewpoint of consumers channel-switching behaviour in Malaysia, this study
contributes positively to research utilizing a well-grounded theory.
Practical Implications
The decomposition of attitude suggests three antecedents of attitudes: relative advantage, compatibility
and complexity. To build a positive attitude towards Internet channel, retailers and marketers need
to publicize the benefits and advantages associated with online shopping such as faster and higher
availability of product information, lower economic cost, etc. Results of this study showed that
98.2 per cent purchased their products from brick-and-mortar stores in the last 1 year; this confirms
that the store channel is well suited to the Malaysian consumers lifestyle. On the other hand, only
39 per cent of Malaysian consumers purchased their products/services online in the last 1 year. Therefore,
the Internet channel also needs to be highlighted as compatible with an individuals existing values
and needs. Findings of this investigation revealed that Malaysian consumers switched from the
Internet channel to brick-and-mortar stores because they perceived that online shopping is complex and
not easy to use. Doing financial transactions online can be linked to the current and future lifestyle where
communication, work and entertainment are done online. To promote this positive attitude, retailers
and even the government need to make the technology easy to use. Familiar interface designs may be
one step towards this objective.
The findings of this study revealed that SN (i.e., the perceived social pressure to perform or not to
perform a behaviour) significantly affected consumers channel-switching intention in both the Internet
and brick-and-mortar stores channels. Hence, it can be indicated that individuals channel-switching
intention in both channels was influenced by people who are closest to them. The decomposition of SN
revealed that friends, family members and co-workers could influence individuals to change the Internet
channel as well as the brick-and-mortar stores channel. Thus, advertising and promotional efforts by
retailers need to take into account these reference groups who shape consumers norms. In addition,
513
retailers and marketers may consider using positive testimonials from these reference groups to
promote each of the Internet and brick-and-mortar stores channels. In addition, reference group is the
significant parameter that affects some of the related marketing strategies such as customer relationship management, word of mouth and e-word of mouth. Thus, these strategies influence channelswitching behaviour and need to be considered by retailers and marketers as tools for an integral part of
their marketing strategy.
Information significantly affected PBC regarding channel-switching intention in both the channels.
Results of this research showed that consumers were influenced more significantly by information to
switch channel from brick-and-mortar stores to the Internet. It confirmed the significant role of information on the Internet channel. In addition, the role of information in brick-and-mortar stores cannot be
ignored. Thus, consumers utilize all the possible shopping channels for information search; multichannel
retailing strategies can promote channel adoption and usage for both information search and purchase,
thereby increasing customer satisfaction and customer loyalty (Biswas, 2004).
Moreover, although online search engines allow consumers to search for a product and the related
information across stores more easily than in conventional stores, they nevertheless require consumers
to spend time evaluating pages of search results. There is much evidence of visitors to sites becoming
frustrated and abandoning their search for information or even their desire to buy something. Many
customers simply give up on their attempts to do business with companies online. For example, some of
the online shoppers do not like to make a purchase because the sites are too difficult to navigate and
searching for information is not easy either (Hercz, 2000). The obvious conclusion is that many companies make it very difficult for visitors to use the Internet channel for searching for the desired information
and to conclude the business. Thus, the Internet retailers should exert greater effort to make their sites
more search friendly with easy navigation. Retailers and companies can also invest in technologies that
search for the right information and retrieve the information as quickly as possible on behalf of the
customer. In addition, multichannel retailing through online and offline channels can satisfy and attract
more customers by providing a combination of information (through online and brick-and-mortar stores
channels) to have better interaction with their consumers. As a result, this knowledge should provide
retail managers a more targeted approach to managing satisfaction efforts for this segment.
Price is a critical factor which is always significantly considered by consumers in their decisionmaking for shopping and switching of channels. Higher price of information searching and/or purchasing of channels will lead to changing of channels by consumers. The cost of brick-and-mortar stores
is higher than the cost of the Internet channel (Berry et al., 2002; Brooks et al., 2008; Degeratu et al.,
2000; Ramaprasad et al., 2010). However, findings of this study also indicated that price influenced
PBC regarding channel-switching intention in both the channels, but the effect of price on channelswitching intention from brick-and-mortar stores to the Internet channel was more significant. Therefore,
consumers who prefer to switch to the online channel have significantly higher price intentions
than those who prefer to change channels from the Internet to brick-and-mortar stores. The respondents
appeared to value the potential for finding lower prices if they shop through the electronic channel.
Online shoppers therefore tend to be more sensitive to price, possibly leading to a more price-sensitive
segment in retailing.
Many brick-and-mortar companies should be advised to improve their easy accessibility of alternative price information, such as those seen at the online stores as well as on other online sites. In this
respect, retailers can set up different technological advances, such as Web-based outlets, to differentiate
the price-sensitive consumers from the price-insensitive ones. In addition, the difference in pricesearch intentions appeared to be a very influential factor for consumer channel switching, indicating that
seeking for low-priced products could be an important objective of consumers who shop for products
514
through the Internet channel. Thus, if online retailers want to be successful, they should stock sufficient
lower priced product alternatives or offer more sales promotions.
Additionally, the findings suggest that the Internet channel (e.g., online websites) should be easy to
navigate and interact with, so consumers can concentrate on the Internet channel. Consumers who feel
confident about their skills of using the internet to shop are more likely to make purchases online; for
the less confident consumers, help and assistance tools are essential in building up their skills and in
increasing their willingness to purchase online. Online shopping can be appealing to consumers who
seek convenience and perceive greater advantages in online shopping over shopping in traditional
stores. It can be concluded that the design of the online channel must be able to deliver advantages such
as useful product information and easy to compare products and prices online.
As retailing channels are expanding, retail managers are faced with the prospects and problems associated to channel proliferation and channel migration among their customer base (Rangaswamy &
Bruggen, 2005). Retailers might be required to manage the progressively more difficult task of making
a decision on which particular channels to use to reach their consumers and how to valuably organize
their selected channel assortment (Marcus & Collins, 2003). Retailers are also faced with the challenge
of encouraging customers to switch from higher cost, lower valued channels to lower cost, higher valued
ones and managing changing consumer preferences across these channels (Thomas & Sullivan, 2005).
In general, the Internet retail is unlikely to completely replace traditional brick-and-mortar retail
(Montoya-Weiss, Voss & Grewal, 2003); in reality, traditional stores are expanding their reach through
the Internet channel by implementing multichannel strategies. Thus, the findings in this study may
have significant implications for the retailing industry, including pure players and traditional brick-andmortar businesses. Besides, it seems worthwhile to offer customers multiple transaction channels. Using
multiple channels potentially broadens the customers exposure and access to the retailers offerings
(Montoya-Weiss, Glenn & Dhruv, 2003). It also gives customers greater control when they can pick the
channel that fits their needs, given their situation (Hui & Roy, 2002; Meuter et al., 2005). The contextdependent nature of value indicates that individual customers may value the same thing differently
at different times in different ways; the offering of multiple channels will increase the chance that customers find a suitable channel to fulfil their (temporary) needs. For multichannel retailers, it is a strategic
decision to stimulate online and/or offline purchasing. For them, the financial costs need to be set off
against its financial gains. Understanding how each channel provides value to customers is just a first
step to optimize the channel mix. The challenge is to leverage and coordinate the strengths of online and
offline channels to increase the overall value for customers (Montoya-Weiss et al., 2003). The creation
of value to customers needs to be contrasted against its financial consequences. More sophisticated
financial models may incorporate the acquisition and retention costs/revenues of individual customers
using channels (cf. Bolton et al., 2004; Verhoef et al., 2005). Despite the high acquisition costs (i.e., costs
of attracting a customer), the online channel may be preferred, as it has been found that it attracts more
loyal customers (Shankar, Urban & Sultan, 2002; Verhoef et al., 2005).
515
behavioural belief scale (Pookulangara & Natesan, 2010; Voss, Spangenberg & Grohmann, 2003).
As such, future research should incorporate hedonic and utilitarian constructs into a broader TPB model
on analyzing the impact of attitude on channel-switching intention.
Second, in this research, Malaysian consumers channel-switching behaviour was evaluated only in
two channels (Internet and brick-and-mortar stores channels). Technology is in constant progress; new
devices, such as tablets, are available to browse for products and mobile apps to shop online are becoming popular among consumers; as technology is progressing and mobile online sales are increasing,
consumers shopping habits are also changing. Younger generations have great technology assimilation
and are growing with an online culture; therefore, understanding mobile commerce and its potential is
fundamental. Catalogue is the other suggested channel that can be examined. Therefore, it is recommended that future researchers study Malaysian consumers channel-switching behaviour by examining
each of the individual channels (e.g., catalogue, mobile phone, tablet and brick-and-mortar stores). In
addition, future studies are suggested to examine less pair similar channels (e.g., catalogue and brickand-mortar stores; brick-and-mortar stores and Internet by applying new online shopping devices, such
as mobile phone as well as tablets).
Third, in this study, the questionnaire was collected from Malaysian consumers in two regions of the
country (i.e., Klang Valley and Penang), and this could lead to differences in the parameters under study
(Safiek & Hayatul, 2009). Besides, as one of the main channels in this study is the Internet and according
to Sulaiman, Ng and Mohezar (2008), students are more familiar with the Internet and computer usage
compared to other groups. Thus, it is suggested that future researchers examine Malaysian consumers
channel-switching behaviour by using students as the respondents for each region separately.
Fourth, to measure channel-switching search and purchase behaviour, respondents were asked to
recall how many times during the last 6 months they had changed channel while searching for a product
or service or purchased goods or services from Internet to brick-and-mortar stores channels and vice
versa. These measures are subject to recall errors and do not require subjects to list actual purchases
through these channels or products/services that they searched for. Additionally, the scaling for these
variables ranged from never in the last 6 months to more than 15 times in the last 6 months which
might have caused a ceiling effect given that consumers might have searched for a product/service more
than 15 times in a day. Future researchers in this area might try to collect a time component to these
measures by asking respondents to indicate how much time, on average, they have spent searching for
products within a specific channel and then changed channel in the last 6 months (a similar question
could be asked for purchasing behaviours). These measures also did not measure search or purchasing
effort, which should be included in future research endeavours.
Finally, in an attempt to understand consumers channel-switching behaviour at a general level, consumers were not directed to respond in relation to a specific product. Consumers are often presented with
a product decision prior to channel selection/switching, which presents a limitation to the work. Although
Mathwick, Malhotra and Rigdon (2002) indicated that many consumers select a retail channel first,
which eventually results in a shopping decision, research focusing on the product/channel decisionmaking process would significantly enhance the understanding of this critical issue. It can be noted that
the nature of the product could determine channel selection as well as channel-switching behaviour.
Products that consumers feel need to be seen, touched, tasted, tried on, etc., prior to purchase are more
likely to be purchased through different channels than products that are electronically conveyable
or have limited distribution. As such, future research should explore consumers channel-switching
behaviour as it relates to specific purchases and products.
516
Appendix
Measurement Scales
Construct
Scale
Relative Advantage
Compatibility
Complexity
Normative Belief
Information
Price
Self-efficacy
Attitude
Subjective Norms
517
Scale
Perceived Behavioural
Control
Acknowledgement
The authors are grateful to the anonymous referees of the journal for their extremely useful suggestions to improve
the quality of the article. The second author would also like to express his gratitude to Universiti Teknologi Malaysia
(UTM), which provided him the opportunity to do PhD and broaden his academic and business horizons.
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