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Research Article

An Empirical Study on the Development of Performance Measurement Indicators for Electronic Stores

Yoon, Cheolho1 · Kim, Sanghun1

1 Kwangwoon University

Published: January 2004 · Vol. 33 No. 4 · pp. 1201-1235
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Abstract

This study proposed the Electronic-Store Success Model by basing upon the Updated D&M(DeLone and McLean) IS Success Model(2003) and reflecting the characteristics of marketing and e-business, and developed the evaluation metrics on the model. The theoretical rationales of deriving the model were as following: 1) though the Updated D&M IS Success Model must be more logical and complete model than the original D&M IS Success Model(1992), it did not reflect characteristics of marketing and e-business, 2) in the marketing studies, service quality has been suggested as one of basic strategies for success, 3) in e-business studies, trust has been emerging as a potentially important antecedent of e-commerce acceptance, 4) there has been a paradigm shift from customer satisfaction to customer loyalty in marketing emphasis, and 5) nowadays, since ERP (enterprise resource planning) has been widely pervaded in many organizations, and has supported PCA (profit center accounting) or CBA(Channel-based Accounting), it has not become difficult to evaluate financial performance of Electronic-Stores. The Electronic-Store Success Model that consists of six dimensions including system quality, information quality, service quality, trust, customer loyalty and financial performance, and depicts the causal relationships between them, was proposed. In order to develop the evaluation metrics on the Electronic-Store Success Model, the following steps were performed. First, nineteen constructs on six dimensions were derived through reviewing related literature in the areas such as marketing, information system and e-business. Second, fifty-eight measurements on sixteen constructs except financial performance dimension were developed by modifying the indicators that were used in previous studies and conducting interviews with the experts. Third, the proposed measurements were empirically verified by confirmatory factor analysis using structural equation modeling with respect to collected data from 224 customers on 69 Electronic-Stores. The results showed that two constructs of ‘usefulness’ and ‘relevancy’ in information quality dimension were integrated into one construct of ‘usefulness’ and two constructs of ‘personalization’ and ‘responsiveness’ in service quality dimension were also integrated into one construct of ‘responsiveness’ in consequences of the discriminant validity testing, and that eleven measurements were dropped by applying the convergent validity testing. Consequently, fourteen constructs (system reliability, response time, ease of use and security belonging to system quality dimension; usefulness, relevance, currency and ease of understanding belonging to information quality dimension; design, responsiveness, assurance and reliability belonging to service quality dimension; trust belonging to trust dimension; intention to re-purchase, word-of-mouth intention belonging to customer loyalty dimension) on five dimensions and forty-seven measurements were found to be empirically developed to evaluate Electronic-Store Success. The theoretical contribution on this study is to propose the fusion style IS success model combining information and business and to empirically develop the evaluation metrics on the model, and the practical contribution is to provide strategic insights for managing Electronic-Store successfully through identifying the relationships between dimensions on the model and suggest the practical guideline of establishing the tools for evaluating Electronic-Store Success through the evaluation metrics developed in this study.
Keywords: Customer Loyaltye-BusinessElectronic-Store Success ModelInformation System EvaluationService QualityTrust