Application of Structural Equation Modeling (SEM) to Explain Online Purchasing Intention - An Extension of Theory of Planed Behaviour (TPB)

Abstract

The purpose of this study is extension of the well established factors of Theory of Planed Behaviour (TPB) includes, Attitude (A), Subjective norm (N), Perceived behavior control (P) and relation of Perceived reliability (U), Trust and faithfulness (T), on Online Purchasing intention (OP). These factors are identified through previous research and each one measured based on 7-point interval Likert scale. Using primary data collection method, 200 questionnaires were distributed to target respondents of customers online purchasing. The responses collected were 147 completed questionnaires representing 73.5 percent response rate. The data were analyzed using Structural Equation Modeling (SEM) using AMOS 20 and SPSS 19. Confirmatory factor analysis of measurement models indicate adequate goodness of fit after a few items was eliminated through modification indices verifications. Goodness of fit for the revised structural model shows requirement in terms of Ratio: 1,238; P-Value: 0.98; GFI: 0.932; and RMSEA; 0.040. The findings showed that perceived behavior control (?=.111, CR=6.656 p<0.001), Attitude (?=-.072, CR=-2.781, p<0.005) and Trust and faithfulness (?=.183, CR=4.454, p<0.001) have significant relationship on online purchasing behavior while subjective norm and Perceived reliability have insignificantly relationship on online purchasing intention. Keywords: online purchasing intention, Structural Equation Modeling (SEM) , AMOS grafic , Theory of Planed Behaviour (TPB)

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