A Simulation Model Using Transaction Cost Economics to Analyze the Impact of Social Media on Online Shopping

Mukherjee, Apratim; Banerjee, Shrabastee; Bandyopadhyay, Somprakash

doi:10.1007/978-3-642-35386-4_4

Cited by 2 publications

(1 citation statement)

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“…Williamson and Ghani (2012) recall Erin Anderson's early recognition of TCE's implications for marketing inquiry in the 1980s and beyond in her seminal work that combined the two fields. More recently, various studies have continued to acknowledge the applicability of TCE in marketing (Cheng & Lee 2011;Gatignon & Gatignon 2010;John & Reve 2010;Mukherjee, Banerjee & Bandyopadhyay 2012;Ndoro, Mudhara & Chimonyo 2015;Seggie 2012;Varadarajan 2019;Yang & Su 2014). Yet one aspect of marketing that has received scant attention in this literature is the applicability of TCE in online retail.…”

Section: Introduction Orientationmentioning

confidence: 99%

The influence of transaction cost variables on e-buyer satisfaction and loyalty: An e-business-to-consumer retailer context

Meyer-Heydenrych

Niemann-Struweg

2021

Journal of Economic and Financial Sciences

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Orientation: Considering the shifts in online buyer behaviour in the past few years, e-buyer satisfaction and loyalty should be at the forefront of any business strategy.Motivation for the study: Despite the confluence of transaction cost economics (TCE) and marketing, which predominantly appeared in relationship marketing and international marketing studies, there is a scarcity specifically of studies of the convergence of online retailing and TCE.Research purpose: This study therefore advances the convergence of TCE and marketing research to describe the influence of online retail transaction cost variables (specifically, uncertainty and asset specificity) on e-buyer satisfaction and loyalty. In this study, uncertainty in the TCE is linked to online price and risk reduction, whilst asset specificity refers to special offers online.Research approach/design and method: A quantitative, descriptive research design was followed, and 355 responses from e-buyers were analysed through structural equation modelling.Main findings: The key findings of the study show that reducing uncertainty is the strongest predictor of e-buyer satisfaction and loyalty.Practical/managerial implications: This implies that online retailers need to focus on developing marketing and online retail strategies that, from an economic perspective, unambiguously communicate all terms and conditions of the costs involved and provide alternative, safe payment options.Contribution/value-add: These results further imply that TEC could be refined to ensure e-buyer satisfaction on loyalty from an online retail perspective and to focus on the role and relevance of uncertainty and asset specificity.

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