An online prepurchase intentions model: The role of

intention to search
Soyeon Shim*, Mary Ann Eastlick, Sherry L. Lotz, Patricia Warrington
Retailing and Consumer Sciences, The University of Arizona, Tucson, AZ, 85721-0033 USA
Received 15 September 2000; accepted 20 May 2001
Best Overall Paper AwardThe Sixth Triennial AMS/ACRA Retailing Conference, 2000
Abstract
In this study, an Online Prepurchase Intentions Model is proposed and empirically tested in the
context of search goods. The focus of this research is to determine whether intent to search the Internet
for product information is a key element for marketing researchers to employ in predicting consumers
Internet purchasing intentions. Data were collected through a mail survey to computer users who
resided in 15 U.S. metropolitan areas. Two-stage structural equation modeling was employed to test
hypotheses. The results show that intention to use the Internet to search for information was not only
the strongest predictor of Internet purchase intention but also mediated relationships between pur-
chasing intention and other predictors (i.e., attitude toward Internet shopping, perceived behavioral
control, and previous Internet purchase experience). Direct and indirect relationships between two
antecedents (attitude toward Internet shopping and previous Internet purchase experience) and Internet
purchase intention were also found. Theoretical and managerial implications are discussed. 2001 by
New York University. All rights reserved.
1. Introduction
Purchasing via the Internet is one of the most rapidly growing forms of shopping, with
sales growth rates that outpace buying through traditional retailing (Levy & Weitz, 2001).
Decision made by a panel of Journal of Retailing editorial board members.
* Corresponding author. Retailing and Consumer Sciences, The University of Arizona, P.O. Box 210033,
Tucson, AZ, 85721-0033. Tel.: 1-520-621-7147; fax: 1-520-621-9445.
E-mail address: shim@ag.arizona.edu (S. Shim).
Pergamon
Journal of Retailing 77 (2001) 397416
0022-4359/01/$ see front matter 2001 by New York University. All rights reserved.
PII: S0022- 4359( 01) 00051- 3
Business-to-consumer Internet sales in the United States grew by 120% between 1998 and
1999 to approximately $33.1 billion (Shop.org & Boston Consulting Group, 2000). Forrester
Research (2001) reported that in 2000 Internet sales to consumers totaled $48.3 billion,
representing an annual growth rate of 45.9%.
Despite these impressive sales growth rates, there is compelling evidence to suggest that
many consumers search retailer web sites intending to purchase, but subsequently abandon
this purpose. Online consumers make frequent use of the Internet to search for product
information. Jupiter Communications reports that approximately 72% of Internet users
research products once per month (Shop.org, 2001). Such high levels of search activity
should translate into similarly high purchase levels. However, it is estimated that businesses
worldwide lost approximately $6.1 billion due to failed purchase attempts in 2000 (Blank,
2000). Conversion rates, the proportion of consumers who buy out of those who visit a web
site, remain low, ranging between 2.8% and 3.2% according to a 2000 Boston Consulting
Group study (Shop.org & Boston Consulting Group, 2000).
Moreover, a recent survey of 9,500 online shoppers conducted by BizRate.com revealed
that as many as 55% of online shoppers abandon their shopping carts prior to checkout, and
32% abandon them at the point of sale (Shop.org, 2001). Among reasons commonly cited for
consumers aborted search and purchase attempts included a reluctance to supply personal
and credit card information, technical problems with Web sites, and problems in locating
products. These statistics suggest that consumers search experiences at Internet retailers
web sites are integral determinants of their online purchasing behaviors.
This study focuses on the importance of the outline search process by developing a model
designed to explore the role of online search intentions as a predictor of online purchasing
intentions. We argue that information search may be the single most important functional
element leading to purchase via the Internet. If search intentions play a central role in
predicting future purchasing intention, search attitudes could be a valuable research tool for
predicting the probability of consumer purchasing on the Web. Such a nding would also
suggest that any decision not to buy while shopping on the Web is largely the consequence
of unfavorable reactions to a site rather than a broader based lack of interest in this
distribution channel.
We propose intent to search via the Internet as the key predictor of intention to purchase
via this channel. In our view, search intent mediates relationships between intent to purchase
and other key antecedents of purchase intent. The assertion that Internet search intent is
crucial to purchase intent is based largely on observations that the role of information search
is signicantly heightened in the context of Internet shopping as compared to traditional store
shopping. This is largely due to the Internets power as an information search vehicle (e.g.,
McGaughey & Mason, 1998; Rowley, 2000) and its information intensive nature (Fortune,
1998). That Internet users perceive the Internets role in consumer information search as one
of its most pronounced features (Maignan & Lukas, 1997) seems to indicate that information
search via the Internet will continue as a major vehicle for comparison shopping as
technologies advance (Dickson, 2000). To the extent these conditions can be established, we
believe that intent to search may be employed as a means for predicting Internet purchase.
Considering this argument, one goal of this research is to understand better the relation-
ship between intentions to use the Internet both for information search and purchasing.
398 S. Shim et al. / Journal of Retailing 77 (2001) 397416
Another goal is to examine the respective roles of consumer attitude and other relevant
variables in predicting both Internet searching and purchasing intentions. In order to achieve
the studys objectives, an Online Prepurchase Intentions Model is developed that integrates
an interaction model of prepurchase consumer information search (Klein, 1998) with the
Theory of Planned Behavior (Ajzen, 1985, 1991). Kleins Interaction Model highlights the
important role of information search in consumers Internet purchase behavior in the context
of goods that differ based on the type of information sought prior to purchase (i.e., search vs.
experience goods).
The model also suggests other variables such as past experience as important antecedents
of search. Ajzens (1985, 1991) Theory of Planned Behavior expands the application of a
traditional attitude-behavioral model by incorporating the concept of perceived behavioral
control, that is, the perception of whether one possesses necessary resources and opportu-
nities to perform a behavior as a direct predictor of behavioral intentions (Ajzen, 1985). The
concept of perceived behavioral control is useful where the achievement of behavioral goals
is contingent on external and internal resources, for example, access to computers and
computer skills.
2. Literature review
2.1. The role of information search in interactive consumer behavior
Because the Internet is perceived as a powerful tool for consumer information search,
marketers remain highly interested in understanding the relationship between consumers use
of the Internet for information search and their choice of channel (e.g., brick-and-mortar
stores vs. Internet) for the nal purchase. On the theoretical side, due to the potential
importance of search in online behavior, academicians such as Klein (1998) argue that search
processes be made part of interactive consumer models as critical predictors of Internet
consumer behavior.
Kleins (1998) Interaction Model of prepurchase consumer information search employs a
goods classication model based on the principles of information economics in which
consumers analyze the relative costs and benets of an additional search. This model adopts
Stiglers (1961) framework in which search is understood to cease when consumers perceive
that the marginal costs of a subsequent search exceed those of its benets. Search costs
include perceived time, travel, and access to media as well as monetary factors. Benets of
search encompass extent and duration of search and the nature of search sources, for
example, types and numbers of information sources.
Klein (1998) argues that information search facilities on the Internet are particularly useful
for search goods due to the low perceived costs of providing and assessing objective data.
Conrming this point, Liang and Huang (1998) indicate that consumers are likely to conduct
transactions in a manner that minimizes transaction costs such as those related to searching
for product information, receiving post-sales services, and so forth. They report that search
goods requiring limited direct examination (e.g., books) were perceived to have lower
399 S. Shim et al. / Journal of Retailing 77 (2001) 397416
acquisition costs on the Internet than experience goods (e.g., shoes) that necessitate direct
prior inspection or trial.
In addition to product type, Kleins (1998) model predicts that two other broad variable
categories will inuence information-seeking behavior. Specically, certain consumer char-
acteristics (i.e., product knowledge, prior experience, attitude toward shopping, and social
inuence) may affect the degree of Internet search. The second category, media attributes, is
characterized by such factors as information presentation format, ow, and interactivity.
The contention that information search is a key part of the interactive media process can
also be supported from a perceived risk perspective. In general, the greater the risks
consumers perceive, the more extensive is their information search prior to purchase
(Dowling, 1986; Mitchell & Boustani, 1994). Because Internet shopping is a new mode of
shopping involving various and seemingly novel types of perceived risks (Eastlick, 1996),
the consumer is likely to place added importance on searching for information when using
this channel.
2.2. The theory of planned behavior
The Theory of Planned Behavior (Ajzen, 1985, 1991) posits that both attitude toward a
behavior and subjective norm are immediate determinants of intention to perform a behavior.
Attitude toward a behavior is recognized as a persons positive or negative evaluation of a
relevant behavior and is composed of a persons salient beliefs regarding the perceived
outcomes of performing a behavior. On the other hand, subjective norm, a function of
normative beliefs, represents a persons perception of whether signicant referents approve
or disapprove of a behavior. The Theory of Planned Behavior further proposes that intention
to perform a behavior is the proximal cause of such a behavior. Intentions represent
motivational components of a behavior, that is, the degree of conscious effort that a person
will exert in order to perform a behavior.
To capture nonvolitional aspects of behavior, the Theory of Planned Behavior incorpo-
rates an additional variable not typically associated with traditional attitude-behavioral
models (e.g., Fishbein & Ajzen, 1975). Specically, it proposes that perceived behavioral
control, in conjunction with attitude and subjective norm, is a direct predictor of behavioral
intention. Perceived behavioral control is the perception of ease or difculty in performing
a behavior. The aspect of ease or difculty specically relates to whether or not a person
perceives that he/she possesses requisite resources and opportunities necessary to perform
the behavior in question. Empirical evidence indicates that the addition of perceived behav-
ioral control to the traditional attitude-behavioral model has resulted in meaningful improve-
ments in the prediction of intentions (Ajzen, 1991).
2.3. Hypothesis development
In the present study, a Model of Online Prepurchase Intentions was developed to inves-
tigate the predictors of intention to use the Internet for both information search and purchase
in the context of search goods. This integrated model was derived primarily from the
Interaction Model of prepurchase consumer information search (Klein, 1998) and the Theory
400 S. Shim et al. / Journal of Retailing 77 (2001) 397416
of Planned Behavior (Ajzen, 1985, 1991), as previously described, in addition to other
relevant literature. Fig. 1 shows the hypotheses that led to the development of the Online
Prepurchase Intentions Model.
2.4. Internet information search intention as a predictor of internet purchasing intentions
The view that the shopping process is composed of consumers shopping strategies and
goals could explain why information search intentions via the Internet might be an anteced-
ent of intention to use the Internet for purchase. It is believed that consumers develop
shopping strategies, that is, action plans, for performing complex shopping behaviors
(Darden & Dorsch, 1990). Such shopping strategies may comprise single or multiple steps
called unit acts. Thus, an overall shopping goal is accomplished through the enactment of one
or more interrelated steps. These unit acts are very similar to the concept of implementation
intentions, dened as specic plans leading to the enactment of goal intentions, that is, the
decision to perform or not perform the behavior (Gollwitzer, 1993). Individuals who develop
implementation intentions have been found to be more likely to act on these intentions
(Orbell, Hodgkins, & Sheeran, 1997).
Lichtenstein and Brewer (1980) indicated that plans and/or events are subject to hierar-
chical processes in which events occur in sequences. Foss and Bower (1986) describe this
process as goal-subgoal relationships. They argue that goals are typically arranged in a
hierarchy of subgoals (p. 95) that can be represented in a goal reduction tree. Given this
hierarchical nature of goals, it is logical to assume that the relationship between information
search intention and purchasing intention is hierarchical. Thus, the intention to research
products and shop online could be construed as subcomponents of one goal. Kleins (1998)
Figure 1. Theoretical Model Predicting Online Purchase Intentions
401 S. Shim et al. / Journal of Retailing 77 (2001) 397416
model suggests a similar hierarchical approach to shopping in which consumer characteris-
tics and media attributes directly inuence the search for product attributes; this search
behavior, according to the model, is an antecedent of the ultimate decision-making behavior
of the actual purchase.
The underpinnings of Kleins (1998) model, the economics of information search,
may be helpful in ascertaining the relationship between consumers channel choices
related to search and purchase venues. Because searching via one channel and purchas-
ing via another channel may be perceived as more costly than searching and purchasing
through a single channel, consumer intentions may tend toward the latter. Supporting this
contention, some researchers have suggested that the nature of the information sources
consulted may inuence purchase behavior (Engel, Blackwell & Miniard, 1995). Thus,
the following hypothesis is offered.
H
1
: Intention to use the Internet for product information search will lead to a positive
intention to use the Internet for purchase.
2.5. Attitude, subjective norm, perceived behavioral control and behavioral intentions
In only a limited number of retail settings, attitudinal factors and subjective norms
have been tested and shown to be signicant predictors of retail patronage intentions. For
example, Evans, Christiansen and Gill (1996) demonstrated that attitude toward shop-
ping and subjective norm had a signicant effect on shopping center patronage intentions
(R
2
60%). In the context of electronic shopping, attitudinal and normative components
accounted for almost one-third of the variation in intention to purchase apparel (Shim &
Drake, 1990). More recently, Jones and Vijayasarathy (1998) reported that the percep-
tions of relevant others may differ by type of shopping mode.
Supporting Kleins (1998) proposition concerning shopping attitudes and information
gathering, Engel et al. (1995) argued that beliefs and attitudes have an inuence on
search behavior. Moreover, Martineau (1958) proposed that consumer beliefs regarding
benets of store types are related to the extent of the search and the type of information
pursued. Other work provides evidence that some marketplace beliefs prompt consumers
to limit their search to a particular set of search alternatives, affecting the extent and type
of external search conducted (Duncan & Olshavsky, 1982). Lastly, empirical evidence
points to store image as a predictor of search behavior (Claus & Hardwick, 1972). These
ndings led to the development of the following hypotheses:
H
2
: Attitude toward Internet shopping will positively predict intention to use the
Internet for product information search.
H
3
: A consumers perceptions of the extent to which signicant referents approve of
Internet use for shopping (i.e., subjective norm) will positively predict intention to use
the Internet for product information search.
Internet shopping requires computer skills and resources such as personal computer
ownership or accessibility. On a global scale, language, culture and government regu-
lations may serve as barriers or impediments to Internet shopping (Sainiee, 1998). At a
402 S. Shim et al. / Journal of Retailing 77 (2001) 397416
microlevel, potential shoppers must either own or have access to a personal computer.
They must also have convenient access to the Internet at an affordable price (Ernst &
Young LLP, 1999). Indicating a potential association between perceived behavioralcon-
trol and product information search, constraints such as a lack of mobility (e.g.,
availability of transportation to travel store to store) and committed leisure time were
identied as inversely related to prestore search (Avery, 1996). Therefore, consistent
with the relationship between intentions and nonvolitional factors proposed by the
Theory of Planned Behavior (Ajzen, 1985, 1991), as well as the aforementioned liter-
ature, it is posited that:
H
4
: Perceived behavioral control will positively predict intention to use the Internet for
product information search.
2.6. Past purchasing behavior and behavioral intentions
Kleins (1998) model suggests that prior experience with Internet shopping is a
signicant predictor of search behavior. Although Ajzen (1985, 1991) did not include
past behavior as a predictor in his Theory of Planned Behavior, other attitude-behavior
researchers asserted that inclusion of past behavior in the model signicantly improves
the prediction of behavior (Bentler & Speckart, 1979, 1981; Sutton & Hallett, 1989).
This is based on the argument that behavior is inuenced by learned predispositions to
respond that are not readily encompassed by the concepts of attitude and intention
(Bentler & Speckart, 1979).
Consumers with strong intentions to shop electronically had previous experience with
other nonstore shopping formats as well as prior experience with the use of personal
computers (Shim & Drake, 1990). Similarly, Liang and Huang (1998) found that
consumers prior experience had a moderating effect in predicting their acceptance of
Internet shopping. Research related to the adoption of other technology-based shopping
formats has also indicated that previous nonstore experience may help predict intention
to adopt interactive electronic formats (Eastlick, 1996) and that shoppers who use
electronic shopping technologies have more experience with these or related technolo-
gies (Weber & Roehl, 1999).
Past online purchase experiences may have a direct impact on online purchase
intentions, as demonstrated by past research ndings (e.g., Eastlick, 1996; Weber &
Roehl, 1999). Because evidence suggests that knowledge, or experience, may be related
to extent of search (Engel et al., 1995), search intentions via the Internet may also vary
by consumers Internet shopping history. These experiences with the Internet might
directly inuence a consumers choice of search mode. Thus, Internet
purchasing intentions may be both directly and indirectly affected (through information
search intentions) by consumers prior Internet purchase experiences. Hence, we propose
that:
H
5a
: Purchase experience via the Internet will positively predict intention to use the
Internet for product information search.
403 S. Shim et al. / Journal of Retailing 77 (2001) 397416
H
5b
: Purchase experience via the Internet will positively and directly predict intention
to use the Internet for purchase.
3. Method
3.1. Sampling and data collection
The sample employed for the study consisted of 2,000 households with personal computer
owners in 15 U.S. metropolitan areas (Seattle, San Francisco, Los Angeles, Denver, Phoenix,
Dallas/Ft. Worth, Houston, Minneapolis/St. Paul, Chicago, NY, Washington D.C., Atlanta,
Orlando, New Orleans, and Cleveland). Household names were obtained from a mailing list
brokerage rm. Personal computer owners were selected because of their potential access to
Internet shopping. Prior to the survey, the questionnaire was pretested, using a small
convenience sample, to ensure readability and a logical arrangement of questions as well as
to select for the main study product categories that consumers perceive to be search goods.
Data were collected via a mail survey in which a pre-contact postcard was employed,
followed by two mailings of a self-administered questionnaire. The precontact postcard was
mailed to each household two weeks before the rst mailing of the questionnaire. A 36%
response rate was obtained from the survey, including 706 of 1,974 delivered surveys. Of the
706 respondents, only those with access to a computer at home or work were included in the
analysis (n 684).
3.2. Respondents characteristics
Characteristics of respondents were similar to those reported for home computer users by
Media Research, Inc. in that respondents consisted of slightly more males (53%) than
females (47%), representing a wide variety of age groups with most in the 3544 age group.
Subjects were highly educated, with 58% holding a four-year college degree or higher and
30% holding a vocational or two-year college degree. Accordingly, respondents were
employed in predominantly white collar and professional occupations, with about 60%
earning total household incomes of $50,000 or more. Almost 76% of respondents were
white, while 24% represented other ethnic groups (e.g., African American, Asian American,
or Hispanic).
3.3. Measures
3.3.1. Intention to use Internet for product information search and purchase
The likelihood that respondents would use the Internet or a store to search for product
information was assessed on a 7-point semantic differential scale (1information search
entirely by store; 7 information search entirely by Internet) for each of three product
categories (books, computer software, and videos). These product categories were deemed as
search products (see Preliminary Data Analysis for justication of these product categories
as search products). Independent of where they might eventually buy these products,
404 S. Shim et al. / Journal of Retailing 77 (2001) 397416
respondents were asked to indicate the likelihood that they would seek information about
each of the products entirely from a retail store, entirely from the Internet, or from some
combination of both. Internet purchasing intention was assessed using the same 7-point scale
in a different section of the questionnaire. Respondents were asked to indicate the likelihood
that they would shop for each of the three products entirely by store, entirely by Internet, or
through some combination of both.
3.3.2. Attitude toward internet shopping
Attitude toward Internet shopping encompassed 24 general attributes representing various
aspects of shopping such as price, merchandise, security, service, social shopping, and
shopping hours. These aspects of shopping were derived from the literature on store choice
(Kopp, Eng & Tigert, 1989; Mazursky & Jacoby, 1986) and electronic nonstore retailing
(Eastlick, 1996; Ernst & Young LLP, 1999; Szymanski & Hise, 2000). Attitude was
measured using an expectancy-value model in which the subjects evaluation of each
attribute was weighted by his/her belief that Internet shopping would provide that attribute.
Subjects were rst asked to indicate, on a 7-point Likert scale (1not important at all;
7extremely important) how important (e
i
) each attribute was to them when choosing where
to shop for the three categories of search products. In another section of the questionnaire,
subjects were asked to indicate on a similar 7-point Likert scale how likely they felt it was
that Internet shopping for these search products would provide each attribute (b
i
). Each of the
24 attributes was presented in a different order in each section to avoid order effects.
3.3.3. Subjective norm and perceived behavioral control
In assessing subjective norm (i.e., perceived social inuence) we again used a 7-point
Likert scale to measure responses to a single statement. Subjects were asked to indicate the
importance of referents (i.e., important friends, family, etc.) approving of their use of the
Internet for shopping. Perceived behavioral control was assessed by two questions, arranged
on a 7-point Likert scale (1very unlikely; 7very likely), that measured subjects percep-
tion of the ease of Internet shopping and their access to the Internet.
3.3.4. Previous internet shopping experience
Subjects used a 7-point ordinal scale to rate the number of purchases they made through
the Internet for each of the three search products in the past 12 months. The scale ranged
from none (0) to 11 or more (7).
4. Preliminary data analysis
4.1. Verication of search product categories
Special efforts were made to restrict the category of products to that of search products,
as Klein (1998) warned that the online search and purchase procedure may differ for search
and experience goods. Therefore, subjects were asked to respond to two statements for each
product that assessed the importance of obtaining product information by experiencing the
405 S. Shim et al. / Journal of Retailing 77 (2001) 397416
product with one of the ve senses and obtaining information by assessing factual informa-
tion about the product. Perceptions regarding each statement were measured using a 7-point
scale (1not at all important; 7extremely important). Five categories of shopping goods,
that is, videos, apparel, books, computer software, and clothing accessories, were provided
for each subjects evaluation. Further examination revealed that three products (computer
software, books, and videos) were evaluated highest in terms of assessing the products using
factual information (M 5.49, M 4.27, M 4.05) and lowest in terms of assessing the
products using sensory experience (M 4.65, M 4.38, M 4.49). Therefore, computer
software, books, and videos represented the search product category.
4.1.1. Attitude toward internet shopping
Prior to nal data analysis, a principal components factor analysis with varimax rotation
was conducted on attitudes toward Internet shopping to determine the structure of attitude
items. Attitude toward Internet shopping was computed for each attribute, using an expect-
ancy-value model (i.e., A e
i
b
i
). In this formula, e
i
represents the importance assigned each
attribute, and b
i
represents the belief that Internet shopping provides each attribute. Results
Table 1
Exploratory factor analysis on attitude toward Internet shopping
Loading Eigen Value Proportion of
Variance
Explained
Reliability
Transaction Services 7.38 38.9% 0.87
Payment security 0.79
Privacy 0.76
Safety 0.68
Product Guarantees 0.66
Minimal Cost/Time for Returns 0.64
Return Policy 0.62
Convenience 1.87 9.8% 0.85
Overall Speed of Process 0.83
Ease of Finding What I Want 0.73
Time Savings 0.72
Instant Ability to Get Items 0.70
Freedom from Hassles 0.61
Sensory Experience 1.31 6.9% 0.75
Being Around Others 0.77
Seeing/Touching Products 0.72
Personal Sales Assistance 0.65
Fun Place to Visit 0.64
Seeing/Experiencing New
Things
0.54
Merchandise 1.15 6.1% 0.80
Comparison Shopping 0.78
Variety of Product/Brand Choice 0.77
Latest Product Information 0.72
406 S. Shim et al. / Journal of Retailing 77 (2001) 397416
of the factor analysis procedure revealed four factors with Eigen values of one or higher that
explained 61.7% of the cumulative variation in attitude (see Table 1).
The rst factor, transaction services, included six items related to security, product
guarantees, safety, privacy, and service. The second factor, convenience, consisted of ve
items indicating overall speed of Internet shopping and freedom from hassles. The third
factor, sensory experience, included items pertaining to the social, personalizing, and rec-
reational experiences of shopping. Merchandise, the fourth factor, was characterized by
recency of product information, comparative shopping opportunities, and variety of mer-
chandise choice.
Of the four factors, transaction service was selected as a surrogate for attitude toward
Internet shopping in further analysis. This was done for a number of reasons. First, the
proportion of variance extracted by the transaction services factor (38.9%) was far greater
than that extracted by the remaining three factors (below 10% for each factor). This indicates
that the transaction services factor is the most signicant contributor to overall attitude
toward Internet shopping. Second, when a Lisrel model was initially run, only the transac-
tion services factor appeared as a signicant predictor, which raised a potential issue
regarding multicollinearity among the factors. Indeed, multiple regression analysis conrmed
the presence of multicollinearity among the attitude factors. Third, items representing
transaction services were among reasons commonly cited for breakdowns in consumers
online search and purchase efforts.
Finally, the primary objective of this study was in developing and testing a model rather
than delineating which aspects of attitude toward Internet were more signicant than others
in predicting the search and shopping intention. Therefore, inclusion of the most signicant
factor, transaction services, in the model was deemed appropriate in accomplishing this
studys goal, given the limitations presented in analysis. However, exclusion of the other
factors (convenience, merchandise, and sensory experience) from the model should not be
interpreted as an indication that these factors are unimportant in determining consumers
intention to use the Internet. Further discussion is offered in the limitations and future
research section.
5. Results
Lisrel 8.3 was employed to conduct structural equation modeling using a two-stage
analysis. Delineating the patterns of relationships among constructs was the primary focus of
the study; therefore, a correlation matrix was used for estimating the structural model (Hair,
Anderson, Latham & Black, 1995).
We rst developed the measurement model, consisting of four exogenous and two
endogenous constructs, by conducting conrmatory factor analysis on multi-item scales (i.e.,
attitude toward Internet shopping, perceived behavioral control, previous Internet shopping
experience, intention to use the Internet for information search, and intention to use the
Internet for shopping). Following recommendations by Joreskog and Sorbom (1993), a
conservative error variance was established for the single-item scale (i.e., subjective norm).
407 S. Shim et al. / Journal of Retailing 77 (2001) 397416
The structural model was then estimated to test the hypotheses. Simple statistics and
correlations of model constructs are reported in Table 2.
5.1. Measurement model results
Table 3 presents the results of the measurement model, including the standardized factor
loadings, standard errors, construct reliabilities, and proportions of variance extracted for
Table 2
Model variables descriptive statistics and correlations
Model Variables Mean Std. Dev. Correlations
1 2 3 4 5 6
1. Attitude toward Internet
Shopping
20.8 9.6
2. Subjective Norm 4.0 1.7 .34
3. Perceived Behavioral Control 4.7 1.6 .31 .35
4. Internet Purchase Experience 1.6 0.9 .27 .34 .29
5. Internet Search Intention 3.3 1.5 .28 .31 .34 .47
6. Internet Shopping Intention 3.0 1.7 .35 .41 .32 .53 0.74
Table 3
Measurement model results for hypothetical model with new factor structure
Construct/Indicator Standardized
Factor Loading
SE t Construct Reliability Proportion of
Extracted Variance

1
(Attitude toward Internet shopping)
X
1
0.83
a
0.86 50.9%
X
2
0.80 0.047 20.70*
X
3
0.70 0.048 17.61*
X
4
0.68 0.045 18.09*
X
5
0.65 0.045 17.39*
X
6
0.59 0.046 15.33*

2
(Perceived Behavioral Control) 0.80 66.4%
X
13
0.90
a

X
14
0.72 0.071 11.21*

3
(Previous Internet Purchase Experience) 0.71 45.0%
X
15
0.67
a

X
16
0.70 0.080 31.22*
X
17
0.64 0.077 12.59*

1
(Intention to Use Internet for Information
Search)
X
18
0.78
a
0.79 56.1%
X
19
0.66 0.047 18.57*
X
20
0.80 0.057 18.30*

2
(Intention to Use Internet for Shopping)
X
21
0.86
a
0.90 75.8%
X
22
0.84 0.036 28.22*
X
23
0.91 0.036 29.91*
Note: First path was set to 1, therefore, no SEs or t values are given; * ps .001
408 S. Shim et al. / Journal of Retailing 77 (2001) 397416
each construct. Factor loadings of the indicators for each construct were statistically signif-
icant and sufciently high to demonstrate that the indicators and their underlying constructs
were acceptable. The reliabilities and variance extracted for each latent variable revealed that
the measurement model was reliable and valid. Computed using indicator standardized factor
loadings and measurement errors (Hair et al., 1995), the extracted reliabilities and variance
ranged from 0.71 to 0.90 and 45.0% to 75.8%, respectively.
5.2. Causal equation model results
Results of structural equation modeling obtained for the theoretical model revealed a
2
of 325.49 (df 110; p 0.0001), GFI of 0.95, adjusted GFI of 0.92, CFI of 0.97, RMSEA of
0.05, and
2
/df of 2.96. All relationships proposed by the theoretical model were signicant
except for the path (p 0.10) from subjective norm to intent to use the Internet for
information search. Modication indices also suggested the addition of a path from attitude
toward Internet shopping to intent to use the Internet for purchasing. Because attitudes are
deemed direct determinants of behavioral intentions (Ajzen, 1985, 1991), potentially includ-
ing both search and purchase behavioral intentions, the model was modied to add this path.
The modied structural model indicated an improved t, producing a GFI of 0.96, an
adjusted GFI of 0.93, CFI of 0.97, and a RMSEA of 0.05. While the
2
of 265.85 (96 df) was
still signicant (p 0.0001), an expected result due to the large sample size (Hair et al.,
1995), the ratio (
2
/df) of 2.77 indicated good model t. Fig. 2 presents the model and
structural path coefcients for each relationship. These results indicate support of all
proposed hypotheses but one.
Figure 2. Final Model Predicting Online Prepurchase Intentions
409 S. Shim et al. / Journal of Retailing 77 (2001) 397416
Hypothesis 1, predicting a positive relationship between intention to use the Internet for
information search and intention to use the Internet for purchase was supported. Results revealed
that the path between these two constructs was indeed positive (
21
0.70) and signicant (p
0.001). The proposed positive relationship between attitude toward Internet shopping and intent
to use the Internet for information search (H
2
) was also supported (
11
0.13; p 0.01). The
third hypothesis, predicting a positive relationship between subjective norm and intention to use
the Internet for information search was not supported. Because the path between these variables
was signicant at only p 0.10, it was removed from the nal structural model. The remaining
hypotheses, however, were supported. Signicant (ps 0.001) and positive path coefcients
were observed between perceived behavioral control and intent to use the Internet for information
search (H
4
), Internet purchase experience and intent to use the Internet for information search
(H
5a
), and Internet purchase experience and intent to use the Internet for purchasing (H
5b
). The
respective path coefcients providing support for Hypotheses 4, 5a, and 5b were
12
0.20,
13
0.42, and
23
0.17.
Considering the total effects of all constructs on intent to use the Internet for purchasing,
intent to use the Internet for information search exhibited the strongest direct impact (
21

0.70) followed by the indirect effect of prior Internet purchase experience through intention
to search (
13
*
21
0.29). Prior Internet purchase experience also exhibited a strong direct
effect on intention to use the Internet for purchasing (
23
0.17).
Regression analysis was employed to further substantiate the mediating role of intention to use
the Internet for information search. According to Baron and Kenny (1986), a mediating effect is
observed when an independent variable signicantly predicts both a mediator and dependent
variable, and when the addition of the mediator signicantly contributes more to the explained
variation in the dependent variable than that contributed by the independent variable. Accord-
ingly, intention to search (the mediator) was rst regressed on each of the independent constructs
(i.e., attitude toward Internet shopping, perceived behavioral control, and previous Internet
purchase experience) using simple regression analysis. Next, intention to use the Internet for
purchasing (the dependent variable) was regressed on each of the independent constructs using
simple regression analysis. Results showed that each independent variable signicantly predicted
both the mediator and the dependent variable (ps 0.0001).
In the last stage, multiple regression analysis was employed to test whether intention to
search via the Internet explained more variation in intention to purchase via the Internet than
each of the independent variables did. This was to conrm the mediating role demonstrated
by the structural equation model of intention to use the Internet for information search. Table
4 shows that the unique variation (i.e., Part R
2
) in intention to use the Internet for purchase
explained by the search construct ranged from 54.6% to 55.1%, signicantly (ps 0.0001)
exceeding the unique contribution made by each independent construct (i.e., attitude, be-
havioral control, previous Internet purchase experience).
6. Discussion and conclusions
Through this research, an Online Prepurchase Intentions Model was developed which
integrated two existing theoretical models. Kleins (1998) Interaction Model suggested the
410 S. Shim et al. / Journal of Retailing 77 (2001) 397416
proposed relationships between Internet search and purchase intention and the importance of
prior experience in predicting search intention. Ajzens (1985, 1991) Theory of Planned
Behavior served to identify key roles played by attitude and perceived behavioral control,
though the role predicted for subjective norm was not conrmed by the studys ndings.
6.1. Predictive role played by internet search intention
A central focus of this study was to determine whether intent to search via the Internet
might be employed by retailers as an index to indicate the probability of purchase intent. As
suggested, intent to search via the Internet contributed a substantial portion of the variance
explained in Internet purchase intent, and mediated relationships between intent to purchase
and several antecedent variables. Theoretically, this evidence conrms the premise that
consumers develop complex shopping strategies consisting of both search and behavior
(Darden & Dorsch, 1990; Klein, 1998), and that they may implement these strategies in a
hierarchical fashion in which the ultimate purchase goal (purchasing via the Internet) may be
preceded by subgoals (information search via the Internet) (Lichtenstein & Brewer, 1980).
In the context of Internet shopping, this subgoal-goal approach may be especially applicable
to shopping for search goods which are purported to have substantially lower transaction
costs on the Internet than experience goods (Liang & Huang, 1998). Therefore, under
particular product-purchase situations, online retailers should not view search via the Internet
and a decision to purchase via the Internet as independent processes.
Results also suggest that, in the context of search goods, an intention to search the Internet
for product information leads to an intention to purchase through the same medium.
Therefore, information search and its selected channel should be considered extremely
crucial elements leading to a choice in purchase format. This nding is interesting in light of
the popular press suggesting that consumers are, and will be, using multiple-channel com-
binations including stores, catalogs, and Internet. Accordingly, retailers have been encour-
aged to employ channel synchronization strategies (Olafson, 2001). While consumers may
view e-tailers that have bricks-and-mortar stores as comparatively less risky choices than
stand-alone e-tailers, the evidence contradicts the argument that, in the context of this
Table 4
Unique variation between Internet purchase intention and Internet search intention controlling for independent
variables
Independent Variable Model
R
2
df Part R
2
Search Intention Independent
Variable
Attitude toward Internet Shopping 57.2% 2 55.1% (t 26.7;
p .0001)
9.49% (t 8.29;
p .0001)
Perceived Behavioral Control 55.2% 2 54.6% (t 25.6;
p .0001)
1.34% (t 2.99;
p .0029)
Internet Purchase Experience 59.1% 2 54.9% (t 22.5;
p .0001)
4.70% (t 5.76;
p .0001)
411 S. Shim et al. / Journal of Retailing 77 (2001) 397416
product category, consumers intend to use different channel formats in their search-purchase
patterns.
Theoretically, traditional information economics (Stigler, 1961) may offer explanations.
Perhaps consumers intentions to use the same channel for both purchase and search reect
efforts to reduce costs (e.g., time, effort) for the entire search-purchase transaction. In some
cases, consumers initial intentions may not be realized because unexpected events arise that
increase the total transaction cost. For example, consumers may have difculty in submitting
credit card information or downloading a website in a timely manner. These types of
problems may prompt consumers to revise their initial intentions because, given the new
circumstances, alternative choices (e.g., traveling to purchase a product at a bricks-and-
mortar store) may be perceived as less costly. Because of the theoretical foundations of
choice of format for search and purchase are not thoroughly understood at this time,
especially given the emergence of new channels such as the Internet, future research is
warranted in this area.
6.2. The role of attitudes, perceived behavioral control, and past behavior
The study also revealed that intention to use the Internet for product information search
acts as a central mechanism through which consumer characteristics affect higher-order
decision-making goals. In order of salience, consumer characteristicsincluding previous
Internet purchase experience, perceived behavioral control, and attitude toward Internet
shoppingall had indirect effects on intention to use the Internet for purchase. This nding
supports the relationships proposed in Kleins (1998) Interaction Model and lending credi-
bility to the possible signicance of other variables proposed in the model that were not
addressed by this study (e.g., media attributes such as ability to customize, user control,
ow). Future research is warranted in this area.
Of the salient consumer characteristics, the most inuential predictor of intention to search
for information via the Internet was previous Internet purchase experience, a factor related
to consumers perceived risk. This nding supports other previous attitude-behavior re-
searchers (e.g., Bentler & Speckart, 1979, 1981; Sutton & Hallett, 1989) who asserted that
past behavior is a predictor of future behavior. Previous purchase experience also exhibited
a strong, direct effect on intention to use the Internet for shopping, a nding consistent with
traditional attitude-behavior models (Eagly & Chaiken, 1993). These ndings also conrm
those of other studies demonstrating the impact of prior similar shopping experiences on
behavior toward innovative nonstore formats (e.g., Eastlick, 1996; Eastlick & Lotz, 1999;
Shim & Drake, 1990). Specically in the context of Internet shopping, Weber and Roehl
(1999) demonstrated that previous Internet experience predicted adoption and use of elec-
tronic shopping. The importance of previous, similar shopping experiences in predicting
future information search and, ultimately, shopping format choice, illustrates the importance
of turning existing Internet customers into repeat customers by providing them with satis-
fying Internet shopping experiences. Such past experiences may directly and indirectly
decrease consumers perceived risk levels associated with online search and shopping,
respectively, leading to future continued Internet use.
A second consumer characteristic predicting product information search intention was per-
412 S. Shim et al. / Journal of Retailing 77 (2001) 397416
ceived behavioral control. Although all subjects in this study owned personal computers,
availability of resources/opportunities to engage in Internet search was signicantly related to the
subjects search intention. When studying consumers Internet purchasing behavior, researchers
should take perceived behavioral control into consideration in that Internet shopping does require
skills, opportunities, and resources, and thus does not occur merely because consumers decide to
act. Further research is warranted to delineate the exact nature of control factors, for example,
skill, time, Internet connections. This nding conrms elements of the Theory of Planned
Behavior (Ajzen, 1991) in that perceived ease or difculty of performing a behavior is essential
to whether or not the behavior will be carried out. It also contributes to the information search
literature demonstrating the link between consumer constraints and the number and types of
search conducted (e.g., Avery, 1996). Additionally, ndings offer support for the theoretical
tenets of the economics of information theory, in which constraints are perceived as costs that are
compared to benets in the analysis of whether or not to pursue additional searches. From the
practitioners view, the evidence indicates that perceived constraints should be mitigated by
corrective strategies. For example, Internet retailers that offer in-store kiosks as a means for
consumers to learn how to shop via the Internet could, in turn, bolster consumers feelings of
control through enhancing their Internet skill levels.
Consumers attitudes toward Internet shopping were also important in predicting Internet
purchase intentions, both directly and indirectly through Internet search. In this study,
attitude toward Internet shopping encompassed specic attributes related to transaction
services (e.g., factors related to conducting secure, safe, and private Internet transactions and
obtaining fulllment services such as product returns and guarantees). This nding is
consistent with the Theory of Planned Behavior (Ajzen, 1985, 1991) that predicts that
attitudes are determinants of behavioral intentions. Additional support for these ndings is
derived from reports of research rms that perceived risk of service failure due to fulllment,
privacy, and security issues ranks among the 10 most important barriers to Internet adoption
(Ernst & Young LLP, 1999). Online retailers efforts to establish a risk-free image with
consumers would seem to be one of the key strategies for attracting consumers to an Internet
shopping format. An additional brick and mortar and/or catalogue presence may aid in this
endeavor by offering consumers a recognized brand identity.
Although other consumer characteristics were found to be determinants of search and/or
purchase intentions via the Internet, subjects intentions to search the Internet were not found
to vary by subjective norm inuence. This evidence refutes traditional attitude-behavioral
models (Ajzen, 1985, 1991) and Kleins (1998) Interaction Model but conrms the work of
Bearden and Etzel (1982) on reference group inuence. Specically, their research infers
weak reference group inuence for behaviors that are not readily visible to the public. As
search, either by bricks-and-mortar store or Internet, can be a somewhat private behavior,
others may be inconsequential in the choice of the search channel format. If future research
on this issue conrms this theoretical tenet, Internet retailers may want to reconsider monies
and efforts invested in strategies that utilize reference group pressure as a motivator for
encouraging Internet shopping. More effective plans may include strategies that reduce
consumers perceived risk (e.g., guarantees) and/or encourage repetitive interactions with
Internet providers in order to develop consumers experience and knowledge of Internet
shopping protocols.
413 S. Shim et al. / Journal of Retailing 77 (2001) 397416
7. Limitations of the study and implications for future research
Several limitations of this study, encompassing the nature of the sample, data collection
procedures, and the identication of factors related to Internet search and purchasing, should
be considered when interpreting the studys results and developing future research to extend
and expand its scope. Because the present study was cross-sectional in nature, longitudinal
trends, which would be most helpful in determining patterns with respect to consumer
attitudes, behavioral intentions, and so forth, could not be identied. Also, consumers past
behaviors were collected on a self-report basis. Perhaps future efforts could obtain consum-
ers actual behavior through real-time electronic data collection in order to minimize the
disadvantages associated with self-report data.
This study investigated consumers prepurchase intention behaviors. Future studies should
incorporate the traditional decision-making stages that lead to actual purchase in order to
understand media attributes, consumer characteristics, product attributes, and search condi-
tions contributing to intention-behavior consistencies and inconsistencies. Information pro-
viding to a better understanding of situations that lead to site abandonment by potential
Internet purchasers would also be of both theoretical and practical interest.
In addition, the theoretical model may not have incorporated all relevant variables, especially
other salient Internet attitudes. Other research on Internet shopping identied attitudes related to
both convenience and merchandise as important factors inuencing consumers Internet shopping
behavior (Ernst & Young LLP, 2001; Szymanski & Hise, 2000). While this exploratory analysis
indicated that positive relationships did exist between convenience and merchandise attitude
constructs and intention to use the Internet for both search and purchase, multicollinearity
problems between these attitudes and the transaction services attitude prohibited their inclusion
in the research model. Further studies should, however, consider an array of attitudes consistently
related to both traditional stores and Internet shopping.
Lastly, future research should explore the types of media attributes and consumer char-
acteristics that lead to Internet search and purchase intent for experience products. A
fundamental question facing online retailers is whether the antecedents that predict the
Internet purchase of search goods are different from those that predict the purchase of
experience goods. Therefore, future research should investigate whether the results revealed
by this study can also be applied to experience goods. In light of the importance of factors
such as brand-name recognition in facilitating Internet purchasing of search goods and
developing technologies designed to create realistic virtual experiences (e.g., software that
simulates actual sensory experiences such as smell and color detection, body-scanning
technologies, etc.), research should also address the types of virtual experiences that might
substitute for direct contact with an experience good.
Acknowledgments
The authors thank the International Council of Shopping Centers Educational Foundation
for their generous nancial support of this research. The authors also express their appre-
ciation to the Academy of Marketing Science/American Collegiate Retailing Association 6
th
414 S. Shim et al. / Journal of Retailing 77 (2001) 397416
Triennial Conference participants and its anonymous reviewers for selecting this paper for
the conference Best Paper award and to Louis P. Bucklin, Editor of the Journal of Retailing
for his contributions in the development of this article.
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