Transferring Attributes of E-Commerce Systems into Business Benefits: A Relationship Quality Perspective

ABSTRACT This paper investigates how the quality of certain attributes of e-commerce systems - such as information quality, system quality, and service quality - can be leveraged to enhance business benefits as indicated by customer commitment and customer retention. This study argues that relationship quality, a concept encapsulating the ideas of both trust and satisfaction, is crucial for transferring attributes of e-commerce systems into business benefits. A research model of relationship quality in e-commerce was built, drawing upon information systems and marketing literature. This model was then examined using a survey of 140 online auction sellers at uBid.com. The empirical results confirmed the research model. Information quality, system quality, and service quality affect relationship quality significantly. Relationship quality in turn has significant impact on customer commitment and customer retention. Keywords: information quality, system quality, service quality, relationship quality, online auction, sellers 1. Introduction This research investigates how the quality of certain attributes of e-commerce systems \ including information quality, system quality and service quality\ can create tangible business benefits. The empirical results of this study suggest that IT practitioners should work with their colleagues in the marketing department to leverage IT attributes of their e-commerce systems in order to reap desired business benefits. Rapid advances in information technology have \dramatically changed how services are conceived and delivered. [Massey et al. 2007 p.278]. Web-based information technology has enabled online services, while traditional business-customer interactions are now mediated by e-commerce systems maintained by service providers rather than salespeople [Evanschitzky et al. 2004; Meuter et al. 2000]. An e-commerce system is typically a web-based information system that provides online transaction services for both buyers and sellers. An e-commerce service provider (often called the intermediary) is a third-party institution that uses e-commerce systems to facilitate transactions between buyers and sellers in its online marketplace by collecting, processing, and disseminating information [Pavlou and Gefen 2004; Sarkar et al. 1995]. Examples of e-commerce service providers include eBay.com, Amazon.com, and uBid.com. According to DeLone and McLean [2004], there are three types of attributes in e-commerce systems: the web content of e-commerce websites, the technical aspect of the e-commerce system, and the services delivered through the e-commerce system. The quality of these attributes \ hereafter labeled as information quality, system quality and service quality respectively \ may impact business benefits rooted in customer commitment and customer retention. Clearly, e-commerce service providers should leverage the attributes of their e-commerce systems to help retain their customers and to maximize business benefits. Despite its importance to e-commerce practitioners, the mechanism through which the attributes of e-commerce systems affect business benefit factors such as customer commitment and customer retention remains unclear. DeLone and McLean [2004] argued that information quality, system quality, and service quality can influence business benefits indirectly through two factors: intention to use/actual use of e-commerce systems and user satisfaction. However, not all researchers share this viewpoint. For instance, Molla and Licker [2001] proposed an e-commerce model that, unlike DeLone and McLeanfs model, includes trust, which is an important factor for e-commerce success. More recently, Cyr [2008] also studied how attributes of the e-commerce system can influence customer loyalty through trust and satisfaction. This study offers an alternative view of the mechanism through which the attributes of e-commerce systems can impact business benefits (Figure 1). …