Understanding customers' repeat purchase intentions in B2C e‐commerce: the roles of utilitarian value, hedonic value and perceived risk

TLDR

Customer loyalty or repeat purchasing is critical for the survival and success of any store. The study examines how utilitarian and hedonic values influence repeat purchase intention among experienced online buyers, while perceived risk negatively moderates these effects, using means‑end chain theory and prospect theory. Utilitarian value is a formative second‑order construct comprising product offerings, information, savings, and convenience, while hedonic value is a formative second‑order construct of six hedonic benefits, and the model was tested on data from 782 Yahoo!Kimo customers. The analysis shows that utilitarian and hedonic values positively predict repeat purchase intention, with higher perceived risk weakening the utilitarian effect and strengthening the hedonic effect, supporting the proposed model.

Abstract

Abstract Customer loyalty or repeat purchasing is critical for the survival and success of any store. By focusing on online stores, this study investigates the repeat purchase intention of experienced online buyers based on means‐end chain theory and prospect theory. In the research model, both utilitarian value and hedonic value are hypothesised to affect repeat purchase intention positively. Perceived risk is hypothesised to affect repeat purchase intention negatively and moderate the effects of utilitarian and hedonic values on repeat purchase intention. Utilitarian value is proposed as a formative second‐order construct formed by product offerings, product information, monetary savings and convenience. Hedonic value is also proposed as a formative second‐order construct formed by the six hedonic benefits that have been identified in prior research. Data collected from 782 Yahoo!Kimo customers provide strong support for the research model. The results indicate that both the utilitarian value and hedonic value are positively associated with buyers' repeat purchase intention. A higher level of perceived risk reduces the effect of utilitarian value and increases the effect of hedonic value on repeat purchase intention. Implications for theory and practice and suggestions for future research are provided.