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Development of science and technology and expansion of communication networks have overhauled many
traditional aspects of human life. Shopping is a traditional urban practice that plays a central role not only in
economics but also in urban development and transportation. Therefore, accurate determination of complex
relationship between online shopping (e-shopping) and traditional in-store shopping can yield valuable data
for transportation planners. The aim of this study is to assess this relationship for Tehran residents. To pursue this
objective, 435 questionnaires were distributed and filled by Tehran residents and the obtained raw data were
analysed by Spss23 software; the results were then processed by Amos23 software to develop a structural equation
model. The results show that online searching has a positive impact on both e-shopping and in-store shopping.
Moreover, a positive effect of e-shopping on shopping trip was found. These findings suggest that people who use
Internet to purchase products are also committed to traditional methods of shopping.
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Municipal Engineer The interaction between e-shopping and
Volume 170 Issue ME4 shopping trip, Tehran
Edrisi and Ganjipour
decrease and eventually disappear. Substitution of shopping that teleshopping has a positive impact on the number of shop-
trips with e-shopping, especially for certain commodities such ping trips made by Americans. Population of this study com-
as electronic and digital gadgets, triggers a gradual change in prised 14 563 American households residing in San Francisco.
business trend and environment, and in the long run alters Three studies conducted by Farag et al. (2005, 2006, 2007)
people’s transportation behaviour. For example, Dixon and have shown that in the Netherlands, the more Internet users
Marston (2002) interviewed 450 individuals in a city in southern search online about products, the more they make non-daily
England and reported that two-thirds of online shoppers shopping trips; and this result points to complementary rela-
(28% of the entire respondents) stated that all or most of their tionship of online searching with in-store shopping.
in-store shopping has been replaced with online purchases. Bhat
et al. (2003) performed a similar research on 255 individuals E-shopping can also have a modifying effect on traditional
living in Halle and Karlsruhe, Germany, and reported that 78% shopping. In this type of relationship, online shopping alters
of people, who buy online, make fewer shopping trips, while traditional shopping rather than replacing it. E-shopping can
other 22% make more trips. Thus, he concluded that for most alter the duration of shopping trip, the mode of transport or
respondents, the use of computer and online shopping has destination (hence the distance travelled to make the purchase).
replaced traditional shopping methods. A study conducted by For example, before going to a store, buyers can use Internet
Corpuz and Peachman (2003) on 1487 Australian Internet users to obtain necessary information regarding their desired product
reported that when Internet transaction is not available, 35% of and store. In this case, the traditional trips to stores remain
respondents use a traditional method for shopping. Tonn and unchanged, but buyers commit less time to browsing and pur-
Hemrick (2004) collected the data of 118 Internet users in chasing because they already have access to a good portion of
Knoxville, TN, USA, and found both substitution and comple- information necessary to make a decision, and this leads to
mentation relationships (mostly substitution) between online decreased duration of shopping trip. An early study on this
and traditional shopping of different types of commodities. subject was conducted by Tacken (1990) who reported that due
They studied the trips made to five different types of vendors to modern shopping (teleshopping through Internet, phone,
(bookstores, supermarkets, clothing stores, music stores and email etc.) 28% of his study population use car less frequently,
others) and reported that, for example, 39% of respondents used 23% often travel on foot and 14% use bicycle. Ferrell (2005)
online shopping instead of physical trips to a bookstore in one found a substitution relationship between online shopping and
or several occasions, while 14% made more trips to bookstores traditional shopping. He also found some evidence regarding
as the result of using Internet or e-mail. In case of supermarkets, modification relationship between these modes of shopping and
7% of respondents made more trips and 5% made fewer trips as reported that Americans who teleshop (through Internet, tele-
the result of online shopping. phone and television ads) commit less time to shopping trips
and also tend to travel a shorter distance to make a purchase.
Complementary relationship between e-shopping and shopping
trips refer to trips made as a result of using Internet (e.g. to There are a few studies that have found no association between
browse and examine the product to be purchased, or for excur- online and traditional shopping. For example, Casas et al.
sion rather than actually spending time on traditional shop- (2001) studied the percentage of shopping trips in total individ-
ping etc.). Complementary relationship is expressed under two ual trips made by 9132 Americans residing in Sacramento,
concepts. (a) Reinforcing effect: this effect refers to situations California, and reported that there is no significant rela-
where online buying directly contributes to increase in the tionship between the number of shopping trips made by online
number of shopping trips (when the use of Internet generates shoppers and conventional shoppers, so the relationship
additional trips that otherwise would not have occurred). For between these two parameters can be described as neutral.
example, according to a research conducted by Steinfield et al.
(2001), Internet-based marketing promotion practices such as This study aims to use structural equation modelling (SEM)
online advertisement and incentives lead to the generation of to determine the relationship between e-shopping and in-store
additional shopping trips. (b) Efficiency effect: this effect refers shopping of people residing in Tehran. The following sections
to situations where traditional shopping is a necessary or present a brief introduction to SEM, and then describe the
enhancive complement of online shopping, increasing its effi- processes of data collection and model development, and
ciency (or vice versa). Hernandez et al. (2001) surveyed 1937 finally conclusions are given.
Canadian shoppers and found that for commodities constitut-
ing the greatest share of online sales (such as computer hard-
ware, travel tickets etc.), online browsing/comparing followed 3. Research methodology
by a traditional (in-store) purchase generates a sale averagely Depending on the type of data available, the complex relation-
three times higher than online sales. Ferrell (2004) investigated ship between online shopping and traditional shopping can be
the impact of teleshopping on shopping trips and concluded studied through a variety of methods such as binary and
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Municipal Engineer The interaction between e-shopping and
Volume 170 Issue ME4 shopping trip, Tehran
Edrisi and Ganjipour
multinomial logit models, path analysis, SEM and probit (X ! Y1 ! Y2) and overall effect (a combination of both
model. Recent studies have been keen to use SEM, since it pro- effects) of variables on each other. A structural equation
vides relatively more accurate results and allows the researcher model can be expressed as
to use latent or unobservable variables like people’s attitudes.
These features have popularised SEM in a variety of disciplines 1: Y ¼ BY þ ΓX þ ζ
such as agriculture, psychology, economics and so on; a popu-
larity that has also spread to engineering applications. For where Y is an (NY 1) matrix containing the endogenous
example, Farag et al. (2007) used this technique to study the variables (NY: the number of endogenous variables); X is
relationship between the frequencies of online shopping, tra- an (NX 1) matrix containing the exogenous variable (NX: the
ditional shopping and online searching, and Cao et al. (2012) number of exogenous variables); B is an (NY NY) structural
used it to ascertain a complementary relationship between matrix representing the direct impact of endogenous variables
these two methods of purchase. on each other; Γ is an (NY NX) structural matrix representing
the direct impact of exogenous variables on endogenous ones;
SEM is a very general and powerful multivariate analysis tech- and ζ is an (NY 1) matrix representing the error.
nique from the family of multivariate regressions; more pre-
cisely, it is a general leaner model that allows researchers to There are a number of fit indices that can be used to measure
test a set of regression equations simultaneously. This model how good a model fits the structural equation. These include
provides a comprehensive statistical approach to test the hypo- x 2/df (chi-square divided by degrees of freedom), whose value
theses about the relationship between observed and latent vari- for a good model should be <3; root mean square error of
ables. As mentioned, the main types of variables used in this approximation (RMSEA), whose value should be <0·05; and
model include latent and observed variables. Latent variables goodness of fit index (GFI), adjusted goodness of fit index
are those that cannot be directly observed or measured (e.g. (AGFI) and comparative fit index (CFI) which must be >0·9.
attitude, satisfaction, motivation etc.), and observed variables
are those that are directly measured. These variables are in fact
the questions (items) of questionnaires. 4. Data collection
The population of this study comprised the residents of
SEM is composed of two models: (a) measurement model and Tehran. Respondents were not limited to any particular age
(b) structural model. In measurement model, the researcher group, social class or level of education. After designing and
defines the relationships between latent and observed variables. preparing the research questionnaire (by way of assessing sev-
Measurement model specifies that how latent variables are eral national and international questionnaires and consultation
associated with or measured by observed variables. The rela- with several professors specialised in this field, Mokhtarian,
tionships between observed and latent variables are shown by Cao and Farag) a total of 454 questionnaires were distributed
factor loadings. A factor loading determines as to how well an and filled by Tehran residents. To increase the accuracy and
observed variable can gauge the change in latent variable. It also due to incomplete and ambiguous responses, 19 question-
should be noted that the measurement model is sometimes naires were excluded from data analysis, reducing the total
referred to as confirmatory factor analysis (CFA), because the number of samples to 435. The initial phase of data collection
description and calculation of parameters assumed in the CFA was carried out in 10 d through randomised personal inter-
model have a similar basis. Measurement model is based on views at the venue of Tehran International Book Fair. It is
the information about a data structure that is obtained earlier necessary to mention that people from all over the country
in the form of a theory, hypothesis or research-based fact. attend this book fair, so before the start of the interview
In structural model, the researcher defines the causal relations respondents were asked whether they were residing in Tehran.
between latent variables or between latent variables and Due to massive attendance in book fair, which hindered the
observed variables. In these equations, structural factors are process of interviews, authors failed to collect their desired
defined to show the intensity (statistical significance) and direc- number of samples during this 10 d event, so after the book
tion (positive or negative) of relations. In addition, each struc- fair the process of data collection was continued in parks and
tural equation has a measurement error, which represents the other public places. Overall, the data collection procedure was
fraction of the latent-dependent variable that is not predicted carried out over a month.
or explained by the latent independent variable. SEM can
analyse causal relationships between two endogenous (depen- As mentioned, most questionnaires were filled by people
dent) variables and also between endogenous and exogenous attending the International Book Fair. It should be mentioned
(independent) variables; so this model can estimate the best that before selecting this event for data collection, authors con-
results for causal relations. In addition, this model can estimate sulted with a number of experts with past experiences in this
the coefficients of direct effect (X ! Y2), indirect effect regard. In the recent decade, Tehran International Book Fair
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Municipal Engineer The interaction between e-shopping and
Volume 170 Issue ME4 shopping trip, Tehran
Edrisi and Ganjipour
has seen a significant growth and development in almost all non-daily needs. In terms of age group, respondents of
aspects, so this public event currently attracts a wide variety of 26–30 years old have the lowest percentage of people who have
people with different age groups, social class, income levels never done any online shopping and the highest percentage
and professions with a balanced gender distribution, and it is of people who use Internet purchase at least once a month. In
not restricted or limited to book readers, authors, publishers all, 27·9% (85 individuals) of 305 single (unmarried) respon-
or researchers. This process of data collection, like any other dents and 16·9% (22 individuals) of 130 married respondents
similar process undertaken in other studies, naturally faced have no previous experience of e-shopping but 7·2% (22 indi-
problems such as disinterest in participation, inadequate atten- viduals) of single respondents and 5·4% (7 individuals) of
tion and misplaced or incomplete filling of questionnaire on married respondents e-shop at least once a month.
the part of the respondents. After collecting the valid question-
naires, raw data were imported into Spss23 software for 5. Development of structural equation
descriptive analysis. Economic and demographic characteristics model
of 435 individuals participating in this study are presented in
Table 1. According to descriptive analysis, of the 206 male 5.1 Measurement model
respondents, 18·4% (38 individuals) have never bought any- This study uses maximum likelihood estimation through
thing online, and for the 229 female respondents this ratio is Amos23 software to develop both measurement and structural
30·1% (69 individuals). Meanwhile, 8·7% (18 individuals) models. As mentioned in the previous section, measurement
of male participants and 4·8% (11 individuals) of female par- model or CFA tests the hypothesis to determine the extent of
ticipants use Internet at least once a month to purchase their consistency between data and a certain factor structure (estab-
lished by earlier researches). In this study, authors use the
structure established in previous researches to determine how
and to what extent the latent dependent variables are explained
Frequency/ by the observed variable. Table 2 shows the items of question-
Mean Percentage naire (devised based on 5-point Likert scale), latent variables
(positive attitude towards e-shopping, positive attitude towards
Gender
traditional shopping and Internet usage experience) and factor
Men 206 47·8
loading pertaining to each item.
Women 229 52·6
Marital status
As the above table shows, the first three items measure the
Single 305 70·1
latent variable ‘positive attitude towards traditional shopping’
Married 130 29·9
and considering the higher coefficient of the third item it
Household income
can be considered the best criterion to measure this variable.
Less than 1 million Tomans 41 9·4
Likewise, for latent variables ‘positive attitude towards
1–1·9 million Tomans 127 29·2
e-shopping’ and ‘Internet usage experience’, the items having a
2–2·9 million Tomans 131 30·1
higher coefficient are more capable of measuring the variable.
3–3·9 million Tomans 61 14
For example, the fourth item has the highest coefficient for
More than 4 million Tomans 75 17·2
gauging ‘negative attitude towards e-shopping’ and the ninth
Employment status
item is the most prominent for measuring ‘positive attitude
Full-time employment 152 34·9
towards e-shopping’. Similarly, the 12th item is the best item
Part-time employment 82 18·9
for explaining the Internet usage experience.
Unemployed 199 45·8
Retired 2 0·5
Note that the T-value represents the level of significance. If
Educational level
−1·96 < T-value < +1·96, the hypothesis is rejected, otherwise it
Below a bachelor’s degree 84 19·3
is verified at a significance level of 95%. When T-value < −2·56
Bachelor’s degree 203 46·7
or T-value > +2·56, the hypothesis is confirmed at a signifi-
Higher than a bachelor’s degree 148 33·9
cance level of more than 99%. Table 3 shows the fit indices of
People with driving license 324 74·5
the model, which indicate an acceptable fit.
People with ATM card 420 96·6
Number of household members 4·03
Number of cars per household 1·34 5.2 Structural model
Age 28·03 To develop a structural model, authors examined different
latent, observed, endogenous and exogenous variables and
Table 1. Demographic characteristics of respondents repeatedly tested their relationships. Values corresponding to
direct and overall effect of these relationships are presented in
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Municipal Engineer The interaction between e-shopping and
Volume 170 Issue ME4 shopping trip, Tehran
Edrisi and Ganjipour
Standardised
Latent variable coefficient T-value
a
Item fixed on 1·00
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Municipal Engineer The interaction between e-shopping and
Volume 170 Issue ME4 shopping trip, Tehran
Edrisi and Ganjipour
Exogenous variables
Educational level 0·473a
Age — −0·117b −0·107b
Income 0·222a —
Gender (women) −0·147b 0·380a −0·392a —
Tele-shopping 0·181a 0·152a
Endogenous variables
Internet usage experience 0·309a 0·262a —
Positive attitude towards e-shopping 0·218a 0·383a
Frequency of online searching 0·220a —
Frequency of online shopping 0·250a
Positive attitude towards traditional 0·201b
shopping
a
P < 0·01
b
P < 0·05: not significant at 0·2 level. Empty cells point to absence of any relationship in the model
Exogenous variables
Level of education 0·473 0·146 0·155 — —
Age — −0·117 −0·030 −0·040 −0·107
Income 0·222 0·069 0·073 — —
Gender (women) −0·147 0·380 −0·473 −0·134 −0·192 0·010
Teleshopping 0·181 0·039 0·230 0·056
Endogenous variables
Internet usage experience 0·309 0·329 0·156 —
Positive attitude towards e-shopping 0·218 0·431 0·101
Frequency of online searching 0·220 0·022
Frequency of online shopping 0·250
Positive attitude towards traditional 0·201
shopping
people to extensive and various online experiences, which lead attitude of more educated people towards online shopping and
to generally high Internet usage experience of more educated higher rate of educated people that use Internet to search for
people, and therefore their higher inclination to online shop- products. Note that younger people are found to be more
ping. This significant relation is also reflected in a positive inclined to buy online, have a better attitude towards this
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Municipal Engineer The interaction between e-shopping and
Volume 170 Issue ME4 shopping trip, Tehran
Edrisi and Ganjipour
245
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Municipal Engineer The interaction between e-shopping and
Volume 170 Issue ME4 shopping trip, Tehran
Edrisi and Ganjipour
examine the aforementioned relationship for other Iranian Ferrell C (2005) Home-based teleshopping and shopping travel:
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Non-store retailing and shopping centre vitality. Journal of
Shopping Centre Research 8(2): 58–81.
Mokhtarian PL (2004) A conceptual analysis of the
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26(1): 43–61. To discuss this paper, please email up to 500 words to the
Farag S, Schwanen T, Dijst M and Faber J (2007) Shopping editor at journals@ice.org.uk. Your contribution will be
online and/or in-store? A structural equation model of the forwarded to the author(s) for a reply and, if considered
relationships between e-shopping and in-store shopping. appropriate by the editorial board, it will be published as
Transportation Research Part A: Policy and Practice 41(2): discussion in a future issue of the journal.
125–141. Proceedings journals rely entirely on contributions from
Ferrell C (2004) Home-based teleshoppers and shopping the civil engineering profession (and allied disciplines).
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1894: 241–248. where you will also find detailed author guidelines.
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