Examination of online channel preference: Using the structure-conduct-outcome framework

Electronic commerce and online shopping continue to grow as consumers' channel of choice for products and services. Yet, persistent issues of security, availability, and personalization inhibit its full potential. This paper examines the behavioral and economic aspects that contribute to online consumers' satisfaction and eventually lead to their preference of the online channel. Using a structure-conduct-outcome (SCO) framework, this study analyzes the economic aspects of consumer transaction through incurred costs and the social aspects through patterns of behavior.The results from the structural equation modeling analysis indicate that asset specificity and uncertainty structure variables of the electronic marketplace are associated with the conduct constructs such as time responsiveness, personalization, website design and security and reliability of the online channel. Further, we find that time responsiveness, personalization, security, and reliability are also significantly related to the consumer satisfaction outcome with the channel. We do not find support for website design being related to online consumers' satisfaction. Finally, there is evidence that satisfaction derived from the above conduct variables is strongly related to the consumers' preference for the online channel.