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Managing Service QualityEmerald Article: Perceived e-service quality (PeSQ): Measurement validation and effects on consumer satisfaction and web site loyaltyEduard Cristobal, Carlos Flavián, Miguel Guinalíu

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Perceived e-service quality(PeSQ)

Measurement validation and effects onconsumer satisfaction and web site loyalty

Eduard CristobalDepartment of Business Administration and Economic Management of Natural

Resources, University of Lleida, Lleida, Spain, and

Carlos Flavian and Miguel GuinalıuFaculty of Economics and Business Studies, University of Zaragoza,

Zaragoza, Spain

Abstract

Purpose – The objectives of this article are to develop a multiple-item scale for measuring e-servicequality and to study the influence of perceived quality on consumer satisfaction levels and the level ofweb site loyalty.

Design/methodology/approach – First, there is an explanation of the main attributes of theconcepts examined, with special attention being paid to the multi-dimensional nature of the variablesand the relationships between them. This is followed by an examination of the validation processes ofthe measuring instruments.

Findings – The validation process of scales suggested that perceived quality is a multidimensionalconstruct: web design, customer service, assurance and order management; that perceived qualityinfluences on satisfaction; and that satisfaction influences on consumer loyalty. Moreover, nodifferences in these conclusions were observed if the total sample is divided between buyers andinformation searchers.

Practical implications – First, the need to develop user-friendly web sites which ease consumerpurchasing and searching, thus creating a suitable framework for the generation of higher satisfactionand loyalty levels. Second, the web site manager should enhance service loyalty, customer sensitivity,personalised service and a quick response to complaints. Third, the web site should uphold sufficientsecurity levels in communications and meet data protection requirements regarding the privacy.Lastly, the need for correct product delivery and product manipulation or service is recommended.

Originality/value – Most relevant studies about perceived quality in the internet have focused onweb design aspects. Moreover, the existing literature regarding internet consumer behaviour has notfully analysed profits generated by higher perceived quality in terms of user satisfaction and loyalty.

Keywords Internet, Electronic commerce, Customer satisfaction, Consumer behaviour, User studies

Paper type Research paper

IntroductionInternet consumer loyalty is difficult and costly (van Riel et al., 2001), and requires aquality service that satisfies the consumer. Numerous studies show that higherperceived web site quality and customer service lead to higher profitability levels (e.g.

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The authors are grateful for the financial support of the Aragon Government (S-46), the Ministryof Science and Technology (SEC2005-4972; PM34); and FUNDEAR.

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Managing Service QualityVol. 17 No. 3, 2007

pp. 317-340q Emerald Group Publishing Limited

0960-4529DOI 10.1108/09604520710744326

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Hoffman et al., 1995; Lohse and Spiller, 1998, 1999; Vanitha et al., 1999; Tilson et al.,1998; Yang Xia et al., 2003). However, despite the importance of perceived quality onthe internet, most relevant studies have focussed on web design aspects (e.g. LiHairong et al., 1999; Mandel and Johnson, 1999; Menon and Khan, 1997). In generalterms, we can say that the concept of web site design considers the following factors:

. The ease of understanding the structure of a system, its functions, interface andthe contents that can be observed by the user.

. Simplicity of use of the web site in its initial stages.

. The speed with which the users can find what they are looking for.

. The perceived ease of site navigation in terms of time required and actionnecessary in order to obtain the desired results.

. The ability of the user to control what they are doing, and where they are, at anygiven moment.

With the development of internet commerce the physical business unit has beenreplaced by a web site. Based on these studies, it seems reasonable to assume that inthe new electronic environment, perceived web site usability is a very important part ofthe store’s image and can influence shopping behaviour. In fact, with the passing oftime web site design has come to be seen as a key factor when the services that anorganisation provides for its consumers use the Internet as a channel ofcommunication. Indeed, Kim and Eom (2002) have concluded that web site designsof critical importance in achieving the global satisfaction of the user. According toprevious studies it is necessary to improve the literature by studying which aspects ofweb site service – beyond and web site design and usability – determine theconsumer’s perceived quality.

Moreover, the existing literature regarding internet consumer behaviour has notfully analysed profits generated by higher perceived quality in terms of usersatisfaction and loyalty. In our opinion previous literature are not sufficientbecause there is not a global perspective in the study of perceived web site qualitycomponents and their effects. So we wish to develop a more global model whichcan explain both aspects: components of quality and consequences. Consequently,the results derived from higher levels of perceived quality should be studied indepth.

Considering the limitations observed in previous work, this study will analyse theconstruct of perceived quality in internet service distribution. The objectives of thisarticle can be divided as follows:

. to develop a multiple-item scale for measuring e-service quality which includesadditional aspects to web site design; and

. to study the influence of perceived quality on consumer satisfaction levels andthe level of web site loyalty.

First, in order to meet the above objectives, a review of the most relevant literatureregarding the concepts analysed is developed. Second, the hypotheses are described.Third, the hypotheses are empirically verified. Lastly, the study’s main conclusionsand management recommendations are discussed.

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Measurement of e-service qualityWith the ever-increasing use of e-commerce the need to appraise service has moved to thevirtual world. To this end, different studies have been carried out, the majority of whichbeing aimed at developing measurement scales adapted to this new medium (see Table I).With the purpose of simplifying the review of the literature, the different studies of onlineservice qualityhavebeen split into twocategoriesaccording to their focus:onlineretailingservices and web site design quality. These studies reflect various aspects of onlineservice quality thus enabling the development of a structured outline in our research.

Online retailing servicesIn keeping with earlier research on service quality in conventional distribution channels,Zeithaml et al. (2000, 2001, 2002) and Parasuraman et al. (2005) carried out a study oninternet service quality, from which they developed the e-SQ scale. This scale is definedas the degree to which a web site facilitates effective and efficient purchasing. At theonset, the e-SQ scale comprised 11 dimensions (Zeithaml et al., 2001). However, laterstudies lowered this figure to seven (Parasuraman et al., 2005). Gefen (2002) maintainsthat service quality dimensions may be divided into three categories: tangibles; acombined dimension of responsiveness, reliability and assurance; and empathy. Inkeeping with this is the .comQ scale by Wolfinbarger and Gilly (2002). This scale is madeup of 14 items divided into four factors: web site design; reliability; privacy/security;customer service. Cox and Dale (2001) show which traditional dimensions of servicequality (e.g. competence, courtesy, clarity, comfort and friendliness) were not relevant toonline sales. However, other factors (e.g. accessibility, communication, credibility andappearance) were very important to being successful in an online environment. Lastly,Madu and Madu (2002) identify 15 dimensions: performance; features; structure;aesthetics; reliability; storage capacity; serviceability; security and system integrity;trust; responsiveness; product/service differentiation and customization; web storepolicies; reputation; assurance; and empathy.

Web site design qualityYoo and Donthu (2001) have developed the SITEQUAL scale to measure the perceivedquality of an online shop. This led to a nine-item scale of four dimensions: ease of use,aesthetic design, processing speed and security. For their part, Barnes and Vidgen (2002)developed the WebQual 4.0. scale, made up of 22 items divided into five dimensions:usability, design, information, trust, and empathy. Liu and Arnett (2000) highlight thepresence of four factors: information and service quality, system use, playfulness, andsystem design quality. And lastly, Loiacono et al. (2002) created the WebQualTM scale,composed of 36 items and 12 dimensions: informational fit to task; interactivity; trust;response time; design appeal; intuitiveness; visual appeal; innovativeness; flow(emotional appeal); integrated communication; business process; substitutability.

Despite efforts made to measure the quality construct perceived in internet servicedistribution, it is considered that research in this area is still at an early phase (van Rielet al., 2001). In fact, we may observe some deficiencies in early work.

First of all, many of the studies are found to focus on technical aspects (such asfonts, colours, number of clicks etc.), thus it would seem reasonable to study additionalaspects in depth, such as those that allow us to explain the relationships betweenonline service quality and satisfaction or the intention to purchase again.


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Author Dimensions Web site analyzed

Web site design qualityLiu and Arnett (2000) 1. Quality of Information

2. Service3. Security4. Playfulness perceived by consumers5. Design of the web site

Webmasters for Fortune 1,000companies

Loiacono et al. (2000)WEBQUALTM

1. Informational fit to task2. Interactivity3. Trust4. Response time5. Design appeal6. Intuitiveness7. Visual appeal8. Innovativeness9. Flow (emotional appeal)

10. Integrated communication11. Business process12. Substitutability

Web sites selling books, music,airline tickets and hotelreservations

van Riel et al. (2001) 1. Core service2. Supporting services3. User interface

Medical information portal web

Yoo and Donthu (2001)SITEQUAL

1. Ease of use2. Aesthetic design3. Processing speed4. Security

Online shopping sites

Barnes and Vidgen (2002)WEBQUAL 4.0

1. Web site usability2. Information quality3. Service interaction

Internet bookstores

Yang et al. (2004) 1. Usability2. Usefulness3. Adequacy of information4. Accessibility5. Interaction

Web portals

Online retailing servicesWolfinbarger and Gilly(2001, 2002, 2003ECOMQ/ETAILQ

1. Web site design2. Reliability3. Privacy/security4. Customer service


Madu and Madu (2002) 1. Performance2. Features3. Structure4. Aesthetics5. Reliability6. Storage Capacity7. Serviceability8. Security and system integrity9. Trust

10. Responsiveness11. Product/service differentiation andcustomization12. Web store policies13. Reputation14. Assurance15. Empathy


(continued )

Table I.Review of the mainstudies on perceivedquality on the internet

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Second, many empirical studies use online surveys, which restrict the results indifferent ways (e.g. internet-user influenced sample, voluntary questionnaires, etc.). Infact, online service quality studies using personal interviews are few and far between(Yang and Fang, 2004). Moreover, the use of personal interviews is usuallysubordinated by the presence of a limited number of participants, which prevents theidentification of sufficiently explanatory dimensions (van Riel et al., 2001). Theseconstraints lead us to propose a research project to answer the following questions:

Q1. What dimensions of online services are of vital importance to consumerservice quality assessment?

Q2. What kind of influence does perceived quality have on consumer satisfactionlevels and the degree of web site loyalty?

Proposed dimensions for the measurement of perceived quality in thedistribution of services on the internetTaking into account the limitations observed in earlier studies, this work develops anew instrument for measuring perceived quality in the distribution of internet services.Let us start by looking at measurement instruments designed in previous work, and inparticular the SERVQUAL scale, as this has been successfully applied to numeroussectors, both in physical and virtual environments. In fact, various online servicequality studies are based on the SERVQUAL scale (e.g. Barnes and Vidgen, 2002;

Author Dimensions Web site analyzed

Zeithaml et al. (2001)E-SERVQUAL

1. Reliability2. Responsibility3. Access4. Flexibility5. Ease of navigation6. Efficiency7. Assurance/rrust8. Security9. Price knowledge

10. Site aesthetics11. Customization/personalization


Cox and Dale (2001) 1. Accesibility2. Communication3. Credibility4. Understanding5. Appearance6. Availability


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

Seven dimensions that form a core and arecover service scaleCore e-SQ

1. Efficiency2. System availability3. Fulfillment4. Privacy


Recovery e-SQ1. Responsiveness2. Compensation3. Contact Table I.


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Loiacono et al., 2000, Wolfinbarger and Gilly, 2003; Parasuraman et al., 2005), whichallows a comparison of results. The proposed scale, called Perceived e-Service Quality(PeSQ) is composed of four dimensions.

Web designThis dimension is related to the design of the web site (e.g. contents layout, contentsupdating and user-friendliness), and coincides with the proposals of previous studies(e.g. Loiacono et al., 2000; Barnes and Vidgen, 2002; Aladwania and Palvia, 2002; Yangand Fang, 2004; Yang et al., 2004).

Wolfinbarger and Gilly (2001) state that the availability of information is one of themost important aspects of online purchasing. In terms of online purchasing versusoffline purchasing, online purchasers perceive a benefit in the fact that they receiveinformation directly from the web site without having to seek out a salesperson(Zeithaml et al., 2002). Another benefit perceived by internet users is the reduction insearch costs, especially in information-related products (Alba et al. 1997; Bakos, 1997).A large amount of freely available information – if it is well organised and easilyaccessed – is frequently mentioned by consumers as an important reason to purchaseon the internet (Vanitha et al., 1999; Li Hairong et al., 1999; Wolfinbarger and Gilly,2001). Thus, in the design of an online shop, offering enough information to compareproducts and make a good choice is very important.

Customer serviceAt the onset of e-commerce it was thought that success was guaranteed merely bybeing present on the internet and offering low prices. These days, however, customerservice has proved itself to be a key element for achieving good results in an onlineshop (Zeithaml et al., 2002). Consumers expect to be able to complete transactionscorrectly, to receive personalised attention, to have the product delivered on time, tohave their emails answered quickly and to have access to information. Web sitemanagement should ensure these expectations are met in the best way possible.

The majority of the scales previously developed consider attributes related tocustomer service (e.g. Liu and Arnett, 2000; van Riel et al. 2001; Madu and Madu, 2002;Wolfinbarger and Gilly, 2003). This dimension is related to service reliability, customersensitivity, a personalised service and a fast response to complaints.

The original conceptualisation of service quality by Parasuraman et al. (1985)included the following dimensions of customer service: sensitivity, courtesy andcustomer knowledge. The subsequent SERVQUAL scale (Parasuraman et al. 1988)included sensitivity (willingness to help customers) and empathy dimensions (individualattention). Courtesy was relocated into the trust dimension of SERVQUAL. The otherelements of this trust dimension were more closely linked to privacy and security, whichhas been shown to be a different dimension in the virtual context.

AssuranceThe assurance attribute is the term given in the services world to describe thesensation that a supplier of customer services transmits in terms of security andcredibility (Parasuraman et al., 1998). In an online environment, security is probablybetter defined when it is contemplated alongside the notion of privacy (Wolfinbargerand Gilly, 2002).

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On the whole, it is considered that the lack of confidence motivated by the absenceof security and privacy in the online environment is one of the main obstacles toe-commerce development. Therefore, this dimension is understood to be essential whenassessing online service quality and this is demonstrated by the fact that it is present inmuch of the work on online service quality (e.g. Liu and Arnett, 2000; Yang et al., 2001;Zeithaml et al. 2001; Yoo and Donthu, 2001; Wolfinbarger and Gilly, 2003; Long andMcMellon, 2004, amongst others).

This dimension includes incorporating security elements and communicating themto customers, guaranteeing confidentiality, confirming the purchase, etc. In short,conveying a secure and reliable image.

Order managementThis dimension relates to the possibility of modifying and/or postponing thepurchasing process at any given moment and with no obligation, and of obtaininginformation on product availability at the moment of purchase.

Order management effectiveness holds considerable weight in the assessment of acommercial service, whether conventional or online. Many studies reflect just this (e.g.Loiacono et al., 2000; Yoo and Donthu, 2001; Zeithaml et al., 2002; Wolfinbarger andGilly, 2002; Kim and Stoel, 2004; Long and McMellon, 2004).

In an offline context, reliability is defined as the “ability to perform the promisedservice dependably and accurately” (Parasuraman et al., 1988, p. 23). In the onlineworld this concerns the delivery of the product in good condition, on time, and exactlyas it was displayed on the web site. Lest we forget, the more technical aspects of thecorrect functioning of web applications (Zeithaml et al., 2002) are important whenensuring optimum order management.

Hypotheses formulationInfluence of service quality on satisfactionAnderson et al. (1994) have shown that service quality has a positive effect onsatisfaction and subsequently on company profitability. According to the researchersthe economic results of increasing consumer satisfaction are demonstrated in the longterm and have a direct effect on purchasing intentions. Iacobucci et al. (1994) reachedthe same conclusions, stating that service quality and consumer satisfaction areimportant in marketing terms because the assessment of a purchase determines theprobability of a follow-up purchase and ultimately, company success. Rust andZahorik (1993) postulate that the improvement of service quality leads to an increase inperceived quality and that this, in turn, increases consumer satisfaction. Parasuramanet al. (1985) indicate that quality contributes to a larger market share and to therecovery of investment, as well as a drop in manufacturing costs and a rise inproductivity. Moreover, Cronin and Taylor (1992) studied the relationship betweenperceived service quality, consumer satisfaction and purchasing intentions, arriving atthe conclusion that service quality determines consumer satisfaction, that consumersatisfaction has a significant effect on purchasing intentions, and that service qualityhas less effect on purchasing intentions than consumer satisfaction.

Turning our attention to contextualised studies on relationships established on theinternet, it should be pointed out that aspects such as information quality oruser-friendliness have positive repercussions on the level of consumer web site


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satisfaction (Zeithaml et al., 2002). Wolfinbarger and Gilly (2002) indicate thateffectiveness in order management is the most important determining factor ofconsumer satisfaction. Finally, in a project carried out by Yang and Fang (2004) inwhich the possible link between the dimensions of online service quality andsatisfaction were studied, the most frequently cited service quality dimensions leadingto satisfaction were: responsiveness, competence, user-friendliness, service reliability,courtesy, service portfolio, and continuous improvement. It is clear that the authorshighlight dimensions related to customer attention, amongst others, as a source ofsatisfaction. Moreover, it has been considered one of the most important drivers ofe-service satisfaction (Petersen, 2001; Urban et al., 2000; Wingfield and Rose, 2001).

In keeping with the above arguments, it is reasonable to think of a close relationshipin place between perceived quality and consumer satisfaction, which brings us topropose the following work hypothesis:

H1. Higher levels of perceived quality in web site services foster higher levels ofuser web site satisfaction.

The influence of service quality and satisfaction on web site loyaltyService quality perception is positively related to purchasing intention (Boulding et al.,1993). In fact, quality has positive consequences for purchasing intentions,on-word-of-mouth recommendations and on the willingness to pay a higher price forthe service. The existence of a relationship between service quality and the retention ofcustomers at a higher level indicates that service quality has an impact on individualconsumer behaviour (Zeithaml et al., 1996).

Substantial research has emphasised the need to discover how to improve loyaltylevels and consumer intentions to purchase on the internet (Abbott et al., 2000; Vanithaet al., 1999). Indeed, Wolfinbarger and Gilly (2002) say perceived quality is the secondmost important predictor of loyalty and intention to repeat a purchase. For TaylorNelson Sofres Interactive (2002), there are two main reasons why consumers do notpurchase online: first, they do not want to give out credit card information for securityreasons; second, they consider it safer to buy in conventional shops than in onlineshops. According to the CIB (2003) spam is, after transport costs, the second mostimportant drawback to online purchasing. Likewise, aspects such as how user-friendlythe web site is have been put forward as determinants of web site loyalty levels(Flavian et al., 2006). Gummerus et al. (2004), in a study applied in healthcare web sites,stated that loyalty to the health web site is satisfaction-driven, but that trust is themain antecedent of satisfaction. In other work focused in examining the antecedents ofconsumer loyalty toward internet portals, Jyh and Chung (2006) demonstrated thatconsumers’ specific asset investment on an internet portal exerted a positive impact onloyalty intention, whereas perceived opportunism toward an internet portal exerted anegative influence on loyalty intention. Ball et al. (2006) carried out an investigation inthe banking industry where they studied the effect of service personalization onloyalty. They said that the effect of service personalization on loyalty exists, but thatthe effect is not direct at all. Personalization works by improving service satisfactionand trust. Parasuraman et al. (2005) indicate that fulfilment (related to ordermanagement) is one of the most influential factors, not just in perceived qualityassessment, but also in loyalty intentions. In the same direction Semeijn et al. (2005)carried out a study that concludes that offline fulfilment appears to be at least as

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important as web site performance. On other hand, Ribbink et al. (2004), conducted astudy where e-trust was found to affect directly loyalty. In this paper, the e-servicequality dimension influences loyalty via e-trust and e-satisfaction. Other e-qualitydimensions, such as ease of use, e-scape, responsiveness, and customization influencee-loyalty mainly indirectly, via satisfaction. Anderson and Srinivasan (2003), indicatedin their investigation, that although e-satisfaction has an impact on e-loyalty, thisrelationship is moderated by consumers’ individual level factors and firms’ businesslevel factors. Among consumer level factors, “convenience motivation” and “purchasesize” were found to accentuate the impact of e-satisfaction on e-loyalty, whereas“inertia” suppresses the impact of e-satisfaction on e-loyalty. Regarding business levelfactors, both “trust” and “perceived value”, developed by the company, significantlyaccentuates the impact of e-satisfaction on e-loyalty. Lastly, it should be noted thatTam (2003) proposes a model that explains online consumer loyalty where factors suchas web design, security and privacy and customer service have a huge influence onloyalty.

As a result of the above arguments the following work hypothesis may be proposed:

H2. Higher levels of perceived quality in web site services foster higher levels ofweb site loyalty.

The securing of higher levels of consumer satisfaction leads to an improvement in bothpurchasing intentions and loyalty levels (Anderson and Sullivan, 1990; Yoon and Kim,2000). The individual who perceives that the business complies with the agreedconditions, believes that this behaviour will continue in the future, which is why theirwillingness to continue the relationship is strengthened, in turn increasing the numberof exchanges and the degree of commitment. At the same time, the attraction of otheralternatives on the market, within the same product category, is weakened, which iswhy the business’s capacity to satisfy customer needs prevents both the customer’swithdrawal and the arrival of new competitors. Thus, satisfaction becomes adifferentiating mechanism for what the company has to offer. In keeping with theaforementioned arguments, we can say that the fulfilment of a user’s web siteexpectations leads to the increase in the user’s future purchasing intentions and willincrease their visit frequency, just as other authors have suggested (e.g. Shankar et al.,2003). Consequently, it is possible to make the following work hypothesis:

H3. Higher web site service satisfaction levels foster web site loyalty levels.

Validation analysisOne of the main objectives of this study is the attainment of an instrument to measurecustomers’ perceived service quality regarding services provided by online shops. Inorder to do that, we followed an adaptation of the most recurrent methodologies insocial sciences (e.g. Churchill, 1979; Ping, 2004).

Phase 1. Dominion specification. The dominion specification was realized from aliterature review. At first the subject was specified according to the review of theexisting literature. Thus, the service quality perceived by a consumer will be defined asthe valuation that the consumer makes of the excellence or superiority of the service(Zeithaml, 1988). We are dealing with a form of attitude, related to, yet not equivalentto, satisfaction (Parasuraman et al., 1988).


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Phase 2. Dimensional identification. The previous literature review allowedidentifying as start point a set of items grouped around three dimensions: technicalquality, functional quality and image (Gronroos, 1988). These three dimensionsincluded every attributes which can affect the perception of quality in the consumer.

Phase 3. Content and face validity. The initial generation of items was based on thereview of the literature on quality and e-commerce; and on the completion of an earlierexplanatory study by means of in-depth interviews with people linked to servicequality and e-commerce. This review guaranteed the content validity of the scale (seeAppendix), that is, the degree to which a scale represents a correct sample of thetheoretical content domain of a construct (Nunnally and Bernstein, 1994). The result ofthis process was an extensive list of 86 items in the seven-point Likert scale.Nonetheless, given the extent of the initial scale it was necessary to reduce it. Thisreduction had the objective of guaranteeing the face validity of the measurementinstrument. Face validity is habitually confused with content validity, and is defined asthe degree that respondents judge that the items are appropriate to the targetedconstruct (Anastasi, 1988). Face validity was tested through a Delphi process. Based onthe responses received by the panel of experts, items with a lesser degree of consensuswere eliminated and the application of the suggestions received was initiated. With thisreduction using the Delphi method, the measurement scale was formed by 31 items,with a sufficient degree of face and content validity.

Phase 4. Pre-test. Once the initial set of items was obtained, a pilot study was carriedout on a sample of 54 individuals, divided into two subgroups, with the objective ofpurging the scale and checking the results on the target population (degree ofdifficulty, scope of the questionnaire, writing up of remarks, valuation of the response,etc.) and finally to determine the most appropriate type of formulation. This pre-test ledto a final total of 25 items.

Phase 5. Data collection (see Table II).Satisfaction and loyalty were measured by a single item, similarly to others authors

(e.g. Bahr, 1982; Parasuraman et al., 1988). Their content and face validity was analyzedthrough the same procedures of perceived service quality scale. However, these twoscales were not submitted to process below because they coincided with previousstudies. The satisfaction scale has its origin in Oliver and Bearden (1983) or Oliver andLinda (1981). Satisfaction was measured in an interval of 7 points (1 very unsatisfied-7very satisfied). Loyalty scale was developed from Parasuraman et al. (2005). Loyalty wasmeasured in an interval of 7 points (1 – less frequent; 4 – equally; 7 – more frequent).

In studies on the valuation of perceived quality in services, the criteria used in theworks of Parasuraman et al. (1988) which resulted in the creation of the SERVQUAL scale

Population Internet users, who had visited, bought or used theservices offered by an internet service, at least onetime during previous three months.

Sample 461 cases (error ^ 4.66% to a confidence level of95.5% (k ¼ 2 and P ¼ Q ¼ 50%)

Process Simple random samplingPlace and date Barcelona (Spain); June, 2001Survey administration Personal interview; semi-structured questionnaire

Table II.Data collection

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are followed on the whole. In the SERVQUAL scale the concept of recent user refers tohaving used the services in each one of the sectors in the last three months. Consequently,in our research project, for an individual to be considered an online shopper and, therefore,the object of our study, they should have visited, bought or used the services of an onlineshop at least once in the three months directly prior to the survey.

Unlike the SERVQUAL scale, only perceptions were assessed. This decision wasbased on the following arguments:

. The SERVQUAL instrument is based on a disconfirmatory paradigm instead ofan attitudinal paradigm. Cronin and Taylor (1992, p. 55) state that theconceptualisation of service quality as an attitude and the operativisation bymeans of the disconfirmatory paradigm of service quality is inadequate, due tothe fact that the use of the disconfirmatory paradigm is adequate for themeasurement of satisfaction (Oliver, 1980), but not for the measurement ofperceived quality, given that if it is conceptualised as an attitude, it shouldoperativise itself as such.

. Buttle (1996) made two criticisms of the definition of service quality as thedifference between expectations and perceptions. The first is that theexpectations of a customer may be low as a consequence of previous contactwith the service. If these expectations, reduced by experience, are covered therewill not be a “gap” and the service quality will be satisfactory although theperception is low (poor service paradox). This is a situation that can easily occurin an online environment. Expectations may also be low due to lack of knowledgeof the online environment and therefore to not having previous experience ininteraction with online shops. The second is that the damaging effect of thenegative confirmation (perceptions lower than expectations) is greater than thebenefits provided by the positive confirmation (perceptions equal to or higherthan expectations) given that for the customers it is easier to criticise poor servicethan to praise excellent service.

Initial reliability analysisIn order to assess the perceived service quality scale we first developed an initialexploratory analysis of reliability and dimensionality (Churchill, 1979; Anderson andGerbing, 1988). We valued the 25 items which compose the scale according to theCronbach’s alpha indicator, considering a minimum value of 0.7 (Nunnally, 1978). Theitem-total correlation was used to improve the levels of Cronbach’s alpha, considering aminimum value of 0.3 (Nurosis, 1994). After these processes five items had to beeliminated. Finally, the scale was composed by 18 items, with levels of item-totalcorrelations higher than 0.3 and a Cronbach’s alpha of 0.884.

Dimensionality analysisThe dimensionality of the scale was first assessed through principal componentsanalysis (Hair et al., 1998). The criterion followed for the extraction of the factors was tohave an auto-value higher than 1. Moreover it was demanded that factorial loadingswere higher than 0.7 points and a significative total explained variance. The first PCAsupposed the extraction of four factors and a high variance. However one of the factorloadings was lower than 0.7. Consequently a new PCA was generated. The secondfactorial analysis extracted four factors too. All factor loadings were higher than 0.7.


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The model explained the 53.532 percent of the variance. The Appendix shows the itemswhich compose each of the factors extracted. These items conformed representativefactors of the four dimensions initially proposed by the Perceived e-Service Qualityscale (PeSQ): web design, customer service, assurance and order management.

A confirmatory model development strategy (Hair et al., 1998) was followed toconfirm the dimensional structure of the perceived service quality scale, as well as thelevel of internal consistency (Ping, 2004). This strategy supposes the consideration ofthe criteria set proposed by Joreskog and Sorbom (1993):

. the weak convergence criterion (Steenkamp and Van Trijp, 1991) meanseliminating indicators that do not show significant factor regression coefficients(t student . 2:58; p ¼ 0:01);

. the strong convergence criterion (Steenkamp and Van Trijp, 1991) involveseliminating non-substantial indicators, that is to say, those whose standardizedcoefficients are lower than 0.5 (Hildebrant, 1987);

. Joreskog and Sorbom (1993) also suggest eliminating the indicators thatcontribute least to the explanation of the model, taking as a cut-off point R2 ,0.3;and

. eliminate items with a lower R2 value, when the model fit is not acceptable.

In order to achieve sufficient levels of convergence and R2 two items were eliminated.The model fit was correct (CFI ¼ 0:907; RCFI ¼ 0:931; GFI ¼ 0:920; RMSEA ¼ 0:066;normed Chi-Squared ¼ 2.996).

In order to confirm the existence of multidimensionality in the PeSQ scale, a rivalmodel’s strategy was developed (Hair et al., 1998; Anderson and Gerbing, 1988). Itcompared a second order model in which various dimensions measured themultidimensional construct under consideration, with a first order model in which allthe items weighed on a single factor (Steenkamp and Van Trijp, 1991). The resultsshowed that the second order model had a much better fit than the first order model(see Table III). These results led us to conclude that the perceived service qualityshowed a marked multidimensional nature.

Composite reliabilityAlthough the Cronbach’s alpha indicator is the most frequent test to assess reliability,it may underestimate reliability. Consequently, it has been suggested the use of thecomposite reliability (Joreskog, 1971), considering a cut-off value of 0.60 (Nunnaly andBernstein, 1994). The results were satisfactory: web design (0.71); customer service(0.73), assurance (0.72) and order management (0.70).

First order model Second order model

RMSEA 0.092 0.066GFI 0.856 0.918CFI 0.809 0.906RCFI 0.850 0.930Normed Chi-squared 4.914 2.984

Table III.Analysis ofmultidimensionality

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Construct validityConstruct validity was assessed considering two types of criteria: convergent anddiscriminatory validity.

Convergent validity. It was tested by checking that the factor loadings of theconfirmatory model were statistically significant (level of 0.01) and higher than 0.5points (Sanzo et al., 2003).

Discriminatory validity. The discriminatory validity was confirmed through threedistinct criteria. First, the correlation between the different variables in the confirmatorymodels was tested to make sure that they did not exceed 0.8 points as this would indicatea low discrimination between them (Bagozzi, 1994). Second, we checked that the value 1did not show that it was in the confidence interval of the correlations between the differentvariables of the confirmatory model. Finally, the correlation between each pair ofconfirmatory model variables was fixed at 1 and a chi-squared difference test was carriedout. The results showed an acceptable level of discrimination (see Table IV).

Structural model analysisIn order to test the structural model, each of the dimensions corresponding to perceivedservice quality was replaced by its arithmetical mean (method of parceling). It is acommon practice among researchers (e.g. Roberts et al., 2003), which can only be doneif the correct fit of a second order factorial model has been checked (see Table I).Satisfaction and loyalty was measured by a single item. In order to included a singleitem in the structural model we fixed its error variance to 0.20 times the variance of theitem, so that we assumed that its reliability was 0.80 (Iglesias and Vazquez, 2001).

The results of the structural model showed that the direct effect of perceived servicequality (the SERVQUAL variable in Figure 1) on satisfaction was significant (level of0.01) and positive, and so H1 was accepted. Second, perceived service quality had not asignificative effect on loyalty, and so H2 was rejected. Finally H3 was accepted due tosignificative and positive effect of satisfaction on loyalty (level of 0.1). This resultshowed us the mediating role played by satisfaction in the relationship betweenperceived service quality and loyalty. Finally, mention should be made of the notablefit obtained in the structural model (CFI ¼ 0:989; RCFI ¼ 0:993; GFI ¼ 0:988;RMSEA ¼ 0:047; normed chi-squared ¼ 2.029).

Multisample analysisIn order to assess the generalization capacity of the obtained results a multisampleanalysis was performed. This type of analysis allows us to contrast the possible differences

Correlations Confidence interval Chi-squared differences

CS-WD 0.65 * (0.55; 0.74) 403.922 (gl ¼ 1; p , 0.01)CS-SP 0.75 * (0.66; 0.84) 420.473 (gl ¼ 1; p , 0.01)CS-OM 0.64 * (0.48; 0.79) 282.747 (gl ¼ 1; p , 0.01)WD-SP 0.74 * (0.66; 0.82) 470.032 (gl ¼ 1; p , 0.01)WD-OM 0.78 * (0.65; 0.92) 255.567 (gl ¼ 1; p , 0.01)SP-OM 0.73 * (0.57; 0.88) 261.820 (gl ¼ 1; p , 0.01)

Note: * coefficients significant to a level of 0.01Table IV.

Discriminatory validity


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between two or more groups. We divide the total sample into two groups according avariable which measured if consumer had bought on the web site (buyers group), or onlyhad obtained information about the distributed services (information searchers group).

First, multisample analysis generates an individual structural solution for eachgroup. Table V shows the data. For the buyers group, data shows that hypotheses H1(level of 0.01) and H3 (level of 0.1) must be accepted. Similar results are observed for theinformation searchers group, due to hypotheses H1 (level of 0.01) and H3 (level of 0.01)are accepted. Fit indicators are acceptable (CFI ¼ 0:983; GFI ¼ 0:980;RMSEA ¼ 0:041; Normed Chi-Squared ¼ 1.753).

Second, multisample analysis offers information about the significance of thedifferences between the coefficients of the two models. To assess these differences weuse the LMTest. This contrast analyzes the variation of the Chi-squared when theconstraint of equalizing one of the coefficients is eliminated. Thus LMTest assesses ifthe elimination of this constraint supposes a significative change in the Chi-squared,and as a consequence a significative improvement in the model fit. Table VI suggeststhat there are not significative differences between the models to a level of 0.05.

Figure 1.Structural model:standardized solution

Buyers(n ¼ 267)

Information searchers(n ¼ 194)

Causal relationshipStandardized

coefficient t-valueStandardized

coefficient t-value

Perceived service quality ! satisfaction (H1) 0.694 8.722 0.345 3.995Perceived service quality ! web site loyalty (H2) 2 0.198 2 0.860 0.035 0.375Satisfaction ! web site loyalty (H3) 0.597 1.906 0.335 4.442

Table V.Multisample analysis:estimated coefficients andt-values

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ConclusionsThe growing level of competition that can be observed on the internet requires theanalysis of factors that can fully explain which aspects largely determine consumerloyalty. Amongst these explanatory factors, perceived quality of a web site or thedegree of satisfaction of the individual with said web site can be especially relevant.

An initial and notable result of this research project is the attainment of the PeSQscale. This scale, supported by an in-depth review of the literature to date and the mostadvanced mechanisms of empirical validation, comprises four dimensions thatcharacterise the perceived quality construct on the internet (web design, customerservice, assurance, order management). Web design is related to the design of the website (e.g. contents updating and usability levels), and coincides with the proposals ofprevious studies (e.g. Aladwania and Palvia, 2002; Yang and Fang, 2004; Yang et al.,2004). In fact we suggest that in the design of an online shop, offering enoughinformation to compare products and make a good choice is very important. Customerservice has proved itself to be a key element for achieving good results in an onlineshop (Zeithaml et al., 2002). Consumers expect, for instance, to be able to completetransactions correctly and to receive personalised attention. The assurance attribute isthe term given in the services world to describe the sensation that a customer servicessupplier transmits in terms of security and credibility (Parasuraman et al., 1998). In anonline environment, security is probably better defined when it is contemplatedalongside the notion of privacy (Wolfinbarger and Gilly, 2002). Online privacy affectsaspects such as the obtaining, distribution or the non-authorized use of personalinformation (Wang et al., 1998). New technology’s growing capacity for informationprocessing, plus its complexity, have made privacy an increasingly important issue.This is giving rise to marked consumer distrust as to how their personal data is beinggathered and processed. The quantitative importance of this issue is shown by Udo(2001), who points out that the protection of privacy is the greatest concern of internetpurchasers. On the other hand, the lack of security as perceived by online consumers isanother of the main obstacles to the development of e-commerce (Furnell and Karweni,1999). The reason for this is the possibility that financial data might be intercepted andput to fraudulent use (Jones et al., 2000). Kolsaker and Payne (2002) maintain thatsecurity reflects perceptions regarding the reliability of the means of payment used andthe mechanisms of data transmission and storage. Thus, what we are talking abouthere are the technical aspects that ensure the integrity, confidentiality, authenticationand non-recognition of transactions. The integrity of an information system refers tothe impossibility of the transmitted or stored data being modified by third partieswithout permission. Confidentiality involves the data being seen by authorizedindividuals. Authentication allows a certain operation to be carried out only afteridentification, or if there are guarantees of the identity of the party one is dealing with(e.g. a web site). Finally, non-repudiation refers to procedures that prevent an

Constraints d.f. Chi-squared differences Likelihood

Perceived service quality ! satisfaction (H1) 1 3.454 0.063Perceived service quality ! web site loyalty (H2) 1 0.020 0.888Satisfaction ! web site loyalty (H3) 1 0.506 0.477

Table VI.Multisample analysis.

LMTest


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individual or organization from denying that they had carried out a certain operation(e.g. a purchasing order). Order management relates to the possibility of modifyingand/or postponing the purchasing process at any given moment and with noobligation, and of obtaining information on product availability at the moment ofpurchase.

Second, this project shows how perceived quality has a direct and profound effecton the degree of consumer web site satisfaction. Likewise, the degree of satisfactionacts positively and directly on the consumer web site loyalty levels shown. Moreover,the mediator function of satisfaction is observed, as it falls between the levels ofperceived quality and of loyalty. Lastly, we should point out that the studies carriedout do not show marked changes in the proposed model, by differentiating betweenbuyers and information searchers.

Managerial suggestionsSatisfaction arises as a consequence of the comparison that the consumer makesbetween their initial expectations of a product or service and the end result. Theproposed model in this research project suggests to us that these expectations can bebased on the components of the construct service quality, given that this acts on thedegree of satisfaction. By analysing the components of service quality we can carry outthe following managerial suggestions.

First, the “web design” dimension shows us the need to develop user-friendly websites which ease consumer purchasing and searching, thus creating a suitableframework for the generation of higher satisfaction and loyalty levels. Second, the“customer service” dimension suggests that the web site manager should enhanceservice loyalty, customer sensitivity, personalised service and a quick response tocomplaints. Third, the web site should uphold sufficient security levels incommunications and meet data protection requirements regarding the privacy of theindividual (“assurance” dimension). Lastly, we recommend the need for correct productdelivery and product manipulation or service (“order management” dimension).

To conclude, the results of the multi-sample model suggest that the behaviour ofpurchasers and non-purchasers alike is not so very different, at least when it comes tothe relationship between the variables that are the object of study in this researchproject. Thus, specific strategy setting for each customer type does not seem to benecessary.

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Further reading

Minjeong, K., Jung-Hwan, K. and Sharron, J.L. (2006), “Online service attributes available onapparel retail web sites: an E-S-QUAL approach”, Managing Service Quality, Vol. 16 No. 1,pp. 51-77.

Parasuraman, A., Berry, L.L. and Zeithaml, V.A. (1991), “Refinement and reassessment of theSERVQUAL scale”, Journal of Retailing, Vol. 67 No. 4, pp. 420-50.

Rust, R.T., Zahorik, A.J. and Keiningham, T.L. (1995), “Return on quality (ROQ): making servicequality financially accountable”, Journal of Marketing, Vol. 59 No. 2, pp. 58-70.

Trocchia, P.J. and Janda, S. (2003), “How do consumers evaluate internet retail service quality?”,Journal of Services Marketing, Vol. 17 No. 3, pp. 243-53.

Yang, Z. and Jun, M. (2002), “Consumer perception of e-service quality: from internet purchaserand non-purchaser perspectives”, Journal of Business Strategies, Vol. 19 No. 1, pp. 19-41.

Zeithaml, V., Parasuraman, A. and Berry, L. (1993), Calidad Total En La Gestion De Servicios,Ed. Dıaz de Santos, Madrid.


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Appendix. Measurement scales used

Dimensions Items Adapted from

Customer service When they promise to dosomething within a certain time,they do it

Long and McMellon (2004);Parasuraman et al. (1988, 1991);Ribbink et al. (2004); Zeithaml et al.(1988, 1993); Yang and Fang (2004)

When a customer has a complaintor grievance, it is dealt withrapidly and effectively

Long and McMellon (2004);Parasuraman et al. (1988, 1991, 2005);Semeijn et al. (2005); Wolfinbarger andGilly (2003); Yang and Fang (2004);Zeithaml et al. (1988, 1993)

The service is performed properlyfirst time

Parasuraman et al. (1988, 1991);Zeithaml et al. (1988, 1993)

The company provides itscustomers with a tailor-madeservice

Barnes and Vidgen (2002);Parasuraman et al. (1988, 1991);Wolfinbarger and Gilly (2003);Zeithaml et al. (1988, 1993)

The stated delivery period isadhered to, at the time agreed on

Barnes and Vidgen (2002);Parasuraman et al. (1988, 1991, 2005);Wolfinbarger and Gilly (2003); Yangand Fang (2004); Zeithaml et al. (1988,1993)

Web design The product and its features arecorrectly presented

Barnes and Vidgen (2002); Long andMcMellon (2004); Semeijn et al. (2005);Wolfinbarger and Gilly (2003); Yanget al. (2004)

The web site information isregularly updated

Yang et al. (2004)

The pages load quickly Parasuraman et al. (2005); Semeijn et al.(2005); Yang et al. (2004)

The contents are easily found inthe web site (ease of navigation)

Barnes and Vidgen (2002); Loiaconoet al. (2000); Long and McMellon (2004);Parasuraman et al. (2005); Ribbink et al.(2004); Semeijn et al. (2005); Yang andFang (2004); Yang et al. (2004); Yoo andDonthu (2001)

Full information on productfeatures and services offered

Barnes and Vidgen (2002);Wolfinbarger and Gilly (2003); Yangand Fang (2004); Yang et al. (2004)

Assurance An image of reliability andtrustworthiness in one’stransactions is transmitted

Barnes and Vidgen (2002); Gummeruset al. (2004); Loiacono et al. (2000);Parasuraman et al. (1988, 1991);Zeithaml et al. (1988, 1993)

The confidentiality of customerdata is ensured

Barnes and Vidgen (2002); Gummeruset al. (2004); Loiacono et al. (2000);Parasuraman et al. (2005); Semeijn et al.(2005); Yang and Fang (2004)

Confirmation, once the purchasehas been made, that the operationhas been carried out satisfactorily

Parasuraman et al. (2005); Yang andFang (2004)

(continued )

Table AI.Perceived service qualityscale

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Dimensions Items Adapted from

Clear information on how to makethe purchase

Loiacono et al. (2000)

Elements of security areincorporated and the customer ismade aware of these

Long and McMellon (2004);Wolfinbarger and Gilly (2003)

Order management The option to modify and/or deferat any time, without commitment,the purchasing process

Long and McMellon (2004); Yang andFang (2004)

Contains information on productavailability when purchasing

Parasuraman et al. (2005); Yang et al.(2004)

Items eliminated invalidation process

Allows for different methods ofpayment (credit card, COD, etc.)

Long and McMellon (2004); Semeijnet al. (2005); Yang et al. (2003)

The option of different chargesdepending on delivery methodsand times

Parasuraman et al. (2005); Semeijn et al.(2005); Yang et al. (2003)

Contains information on thecompany (name, type of company,HQ address, country of origin,telephone number, etc.)

Barnes and Vidgen (2002); Loiaconoet al. (2000); Semeijn et al. (2005)

24-hour help-line Parasuraman et al. (2005); Yang andFang (2004)

Includes elements of diversion orentertainment (such as games,videos, interactive applications,etc.)

Kim and Stoel (2004)

Includes the option tocommunicate with other userswith similar interests andpreferences

Long and McMellon (2004); Yang et al.(2004); Van Riel at al. (2001)

Contains clear information on howto make a purchase

Barnes and Vidgen (2002)

The applications and elementsmaking up the web site arevisually appealing

Barnes and Vidgen (2002); Loiaconoet al. (2000); Long and McMellon (2004);Yang and Fang (2004); Yang et al.(2003); Yoo and Donthu (2001)

Satisfaction scaleHow satisfied were youwith this web site?

Anderson and Srinivasan (2003);Gummerus et al. (2004); Jyh and Chung(2006); Oliver and Bearden (1983);Oliver and Linda (1981); Ribbink et al.(2004); Semeijn et al. (2005)

Loyalty scaleOver the next year, mypurchases at (or visitsto) the online shop that Icurrently use most willbe

Parasuraman et al. (2005); Ribbink et al.(2004); Semeijn et al. (2005)

Table AI.


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About the authorsEduard Cristobal holds a PhD in Business Administration and is Associate Professor ofMarketing in the Department of Business Administration and Economic Management of NaturalResources at the University of Lleida. His work has been presented in national and internationalconferences, and has been published in several journals, such as Managing Service Quality.

Carlos Flavian holds a PhD in Business Administration and is Professor of Marketing in theFaculty of Economics and Business Studies at the University of Zaragoza (Spain). His research instrategic marketing has been published in several academic journals, such as the EuropeanJournal of Marketing, Journal of Consumer Marketing, Journal of Strategic Marketing, Journal ofRetailing and Consumer Services, Information & Management, Internet Research and differentbooks. He is in charge of several competitive research projects being developed on the topic ofe-marketing. He is a member of the Editorial Board of Industrial Marketing Management, Journalof Retailing and Consumer Services, Journal of Marketing Communications and InternationalJournal of Services and Standards. He is the corresponding author and can be contacted at:[email protected]

Miguel Guinalıu holds a PhD in Business Administration and is Assistant Professor in theFaculty of Economics and Business Studies (University of Zaragoza, Spain). Previously, heworked as an e-business consultant. His main research line is online consumer behavior,particularly the analysis of online consumer trust and virtual communities. His work has beenpresented in national and international conferences, and has been published in several journals,such as Journal of Marketing Communications, Information & Management, IndustrialManagement & Data Systems, Internet Research, Journal of Retail & Consumer Services,International Journal of Bank Marketing or International Journal of Retail & DistributionManagement, and books, such as Advances in Electronic Marketing, Mobile Government: AnEmerging Direction in E-Government, Encyclopedia of Networked and Virtual Organizations andEncyclopedia of E-Commerce, E-Government and Mobile Commerce.

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