Abstract
The purpose of the current study is to examine the effect of behavioural attitude, subjective norm (SN) and perceived behavioural control (PBC) on channel-switching intention in regards to Internet and brick-and-mortar stores channels in Malaysia. Theory of planned behaviour (TPB) was used in this study. Partial least squares (PLS) based on the structural equation modelling (SEM) technique was used to analyze the data. The study was based on the simple random sampling, with the survey instrument administered to the Malaysian consumers from the regions of Klang Valley and Penang. A total of 497 completed surveys were obtained. The respondents had to meet the criteria of shopping online and/or brick-and-mortar store prior to participating in the survey. Findings have shown that the TPB was successful in predicting consumer channel-switching intention. In addition, based on the results, the main constructs including attitude and SN significantly and positively predicted consumers’ channel-switching intention in both channels. Perceived behavioural control was the only construct that did not predict intention.
Keywords
Introduction
Internet World Stat stated that the number of Internet users in Malaysia was 17,723,000 (60.7 per cent) in 2012. Meanwhile, the increase of Internet users from 2000 to 2012 was 376.8 per cent (
Channel switching and multichannel retailing strategies offer some advantages to the retailers and companies with two or more channels to send their services or/and products to the consumers. It would also be more interesting and valuable for customers to choose from more than one channel to seek for information and purchase their products. Consumers choose and use channels based on their specific goals at a particular point in time, their prior experiences and their expertise (Wesley & Eisenstein, 2008). A number of multichannel studies suggest that channel choice is not static but changes over time, as consumers migrate from one channel to another (Albesa, 2007; Black, Lockett, Ennew, Winklhofer & McKechnie, 2002; Dholakia, Zhao & Dholakia, 2005; Gupta, Su & Walter, 2004). Besides, consumers may switch from one channel to another in order to find ways to maximize the benefits of shopping and minimize the costs associated with shopping, in terms of money, time and energy, whether in a brick-and-mortar store, or over the Internet (Downs, 1961; Kim & Kang, 1997). In addition, customers would prefer to migrate from online channels to offline channels and vice versa according to their behavioural factors (e.g., attitude, beliefs, as well as perceived behavioural control [PBC]) of a channel. Therefore, it is important for retailers to not only get knowledge about the benefits and costs of the channels, but also they need to know more about the consumers.
Moreover, consumers may search for product information online but prefer to buy it in a traditional store (Albesa, 2007; Balasubramanian, Raghunathan & Mahajan, 2005; Van, Minocha & Laing, 2007). They may find it easy to make a search about product information through the online channel of A-retailer but do their purchase from B-retailer through the offline channel (Kim & Lee, 2008; Shim, Eastlick, Lotz & Warrington, 2001; Verhoef, Neslin & Vroomen, 2005). This would result in a sort of difficulty for the retailer to retain customers due to the switching situation (Jensen, Jakus, English & Menard, 2004; Kumar & Venkatesan, 2005; Stone, Hobbs & Khaleeli, 2002). Thus, the concept of buying and switching intention concerning up-to-date consumers has become a major issue to marketers and retailers (Albesa, 2007; Kumar, Shah & Venkatesan, 2006; Noble, Griffith & Weinberger, 2005; Pookulangara, Hawley & Xiao, 2011). Information technology has made people use the Internet in conducting their transactions rather than the traditional way of trading (Fuller, Serva & Benamati, 2007). Furthermore, it is possible that multiple channels’ retailers meet the desires of customers’ flexibility for how, where, when and what to shop (Kumar & Venkatesan, 2005; Stone et al., 2002). The challenge is to recognize when, how and where consumers utilize the stores and/or Internet and how consumers consider migrating among channels and among retailers (Albesa, 2007; Bickle, Buccine, Makela & Mallette, 2006; Kumar & Venkatesan 2005). The purpose of this study is to examine channel-switching intention between Malaysian consumers in the Internet and brick-and-mortar stores channels by applying the theory of planned behaviour (TPB). Theory of planned behaviour has been used in studies that have examined multichannel consumer behaviour (Grabner-Krauter & Kaluscha, 2003; Kamarulzaman, 2008; Keen, Wetzels, Ruyter & Feinberg, 2004; Wen, Prybutok & XU, 2011) as well as channel-switching behaviour (Kim & Park, 2005; Pookulangara & Natesan, 2010; Pookulangara et al., 2011). Thus, using TPB is an appropriate and acceptable theory for studying consumers’ channel-switching intention.
Literature Review
There is an opportunity for consumers to choose only one organization to seek for information (Dholakia & Uusitalo, 2000; Lihra & Graf, 2007), buy goods as well as return unwanted products by selecting one of the following channels, for example, Internet and brick-and-mortar stores (Kumar & Venkatesan, 2005). For that reason, it is very significant for multiple channel retailers to understand and perceive how their consumers behave and to know the issues, in particular, the purchase incentive that is under this behaviour. In this way, it is more possible for retailers to classify different groups of consumers and it will diminish the losses related to non-selective coverage (Schroder & Zaharia, 2008).
Multichannel consumers are defined as those who regularly shop through more than a single channel (Kumar & Venkatesan, 2005). Multichannel shoppers are important for retailers’ success because they are more open to new experiences, purchase more frequently and are more loyal to a brand (Pastore, 2001). Several researchers have conducted studies related to consumers’ online shopping behaviours in a multichannel shopping context (Choi & Park, 2006; Kim & Park, 2005; Kim, Kim & Kumar, 2003; Noh, 2008). They have found that multichannel consumers’ behaviours provide a number of chances to increase the sales and profits of multichannel retailers. Therefore, understanding multichannel consumer behaviours is crucial for multichannel retailers’ success (Dholakia, Zhao & Dholakia, 2005; Mathwick, Malhotra & Rigdon, 2002).
A consumer may choose one channel but at the middle stage of his/her decision making process may change the channel and use another one. Therefore, a consumer might migrate to another channel if he/she is not happy with a current channel, which results in channel switching (Albesa, 2007; Balasubramanian et al., 2005). An important issue of interest to both practitioners and academicians is to find out consumers’ channel-switching behaviour (from online to offline and vice versa) and also to recognize the major drivers which influence such behaviour (Gupta et al., 2004). For example, a client may tend to switch to online channels in case his/her intention towards online purchase is better than offline buying intention and vice versa. Necessarily, consumers declare their preferences according to utility maximization when it comes to costs and benefits of the retail structures given to them (Alba et al., 1997). It indicates that the utility gained by the clients through online shopping needs to be more than the utility obtained through the traditional format, which causes the consumer to switch to an online environment. This study recognizes the main behavioural determinants that affect consumers’ switching tendency from shopping offline to the online one and vice versa.
Nowadays, the multichannel strategy is becoming more significant and crucial for both businesses and consumers (Albesa, 2007; Baal & Dach, 2005; Dholakia, Zhao & Dholakia, 2005; Rangaswamy & Bruggen, 2005). Retailers and companies should search for a multiple channels’ design that offer ‘channel advantages’, due to the fact that each channel provides some degree of difference of benefits (e.g., mutual communication between consumers and retailers, customer satisfaction, longer tenure and consumers are more loyal to channel) (Black et al. 2002; Kumar & Venkatesan, 2005), but at the same time, it also has complications and challenges (Van, Minocha & Laing, 2007). One of the challenges is that retailers might lose their consumers in the path of the buying process (Inman, Venkatesh & Rosellina, 2004; Nicholson, Clarke & Blakemore, 2002; Nunes & Cespedes, 2003). This is related to the issue that consumers could easily move through channels. For example, they can seek information through one channel (e.g., Internet), and after that buy the product across another channel (e.g., store) (Pookulangara et al., 2011). For this reason, employing only one channel limits the performance in the marketplace to what that channel is proficient in doing predominantly well (Johnson & Greco, 2003).
In spite of the growing attention which has been paid to multichannel-oriented topics, study on multichannel retailing and channel-switching behaviour is still considered to be at its early stages. As Neslin et al. (2006) and Slack, Rowley and Coles (2008) stated, previous research works on multichannel-based topics chiefly concentrated on attaining knowledge regarding the elements of customers’ choice of channel. Very few studies have investigated customer channel migration in terms of multi-channel retailing and the factors that affect consumer’s channel behaviour among different channels in a multichannel environment (Ansari, Mela & Neslin, 2008). A study done by Choi and Park (2006) has shown that there is a lack of knowledge concerning important predictors in terms of consumers’ beliefs, attitudes and intentions for online as well as traditional stores shopping on the basis of multiple channels and channel switching. According to Pookulangara et al. (2011), the study on consumer channel-switching intention is still not sufficient and needs more research. Hence, the present study investigates potential elements related to customer channel migration behaviour.
In addition, to convince and attract Malaysian consumers to use the Internet, as their retailing channel instead of traditional channels, is still a challenging task for web retailers in Malaysia (Haque & Khatibi, 2005; Salehi et al., 2011). The development of Internet technology in Malaysia has massive opportunities such as its increasing benefits, decreasing costs of product and service delivery and expanding geographical boundaries in bringing buyers and sellers together (Haque & Khatibi, 2005; Syed et al., 2008). Salehi et al. (2011) reported that the acceptance of the Internet channel among Malaysian consumers is not as advanced compared to their counterparts in other countries. The question is why? In addition, what are the factors that influence their acceptance? The other challenge is to understand how and when Malaysian consumers use the Internet, and what drives their propensity to switch between retailers and between channels. There are some barriers, which have contributed to the unwillingness of the Malaysian people to shop online, like being afraid of their personal information being stolen by others (Salehi, 2012). Despite the potential among Malaysian consumers, there is still a lack of understanding towards online shopping. Meanwhile, Haque and Khatibi (2005) and Mumtaz, Islam, Ariffan and Karim (2011) stated that studies regarding consumer behaviour by using of behavioural models (e.g., theory of reasoned action [TRA] and TPB) towards online shopping in the Malaysian environment are still limited and also they claimed that Internet in Malaysia is still considered as a new medium between the retailers and the consumers.
Theory of planned behaviour is a well-known theory to evaluate and examine consumers’ behaviour and channel-switching behaviour in online and/or offline channels. The effect of components of TPB on channel choice/switching is different (Pookulangara et al., 2011). Some factors in some channels may significantly affect consumers’ channel-switching behaviour, but in contrast, some other channels may have no influence on consumers’ channel-switching behaviour. Meanwhile, the purpose of this article is to study on Malaysian consumers’ channel-switching intention. Thus, Haque and Khatibi (2005), Harn, Khatibi and Ismail (2006) and Mumtaz et al. (2011) stated that studies regarding consumer behaviour by using behavioural models (e.g., TRA and TPB) for online shopping in the Malaysian environment are still limited and also they claimed that Internet in Malaysia is still considered as a new medium between the retailers and the consumers. Therefore, the objective of this study is to identify factors that are significant in explaining Malaysian consumers’ channel-switching behaviour. This study is based on the TPB, a theory well grounded in consumer behaviour research, and we used Malaysia as the sampling frame.
Theory of Planned Behaviour and Decomposition
The conceptual framework of this study is based on Malaysian consumers’ channel-switching intention with regard to Internet and brick-and-mortar stores channels. In this study, TPB (Ajzen, 1985) is used. Based on the TPB model, behavioural intention is influenced by attitude, subjective norm (SN) and PBC. Attitude, SN and PBC are considered according to the expectancy-value model (Ajzen, 1985). Attitude towards the behaviour is a meaning of beliefs and the estimation of those beliefs (Fishbein & Ajzen, 1975). Subjective norm is a function of an individual’s beliefs that particular individuals or groups think he or she should or should not do the behaviour which is normative belief (NB), and the individual’s inspiration to comply with those referents (Ajzen, 1991). Perceived behavioural control can be explained based on two subcomponents: (i) control belief perceptions of barriers or resources influencing the behaviour and (ii) perceived power significance of these resources or obstacles (Fishbein & Ajzen, 1975).
In addition, the decomposition of TPB has the advantage of providing more managerial implications than the unidimensional approach because the decomposition approach is focused on identifying specific factors and also allow a better understanding of the relationships between belief structures and antecedents of intentions (Bagozzi, 1992; Taylor & Todd, 1995). Therefore, the attitude construct is decomposed into relative advantage, compatibility and complexity (Rogers, 1983; Taylor & Todd, 1995). Subjective norm is decomposed into NB (Ajzen, 1985, 1991). Perceived behavioural control construct is decomposed into self-efficacy and facilitating conditions (Ajzen, 1991; Bandura, 1977).
Study Variables
The objective of the current study is to predict consumers’ channel-switching behaviour with regard to any of the two channels (i.e., Internet and brick-and-mortar stores). The impact of relative advantage, compatibility and complexity on attitude towards channel-switching intention was examined. The effect of NB (i.e., friends, family and co-workers) on SN, self-efficacy and facilitating conditions on PBC towards channel-switching intention in both channels was studied. The relationship between variables, via the research model, is organized in the following section (Figure 1).
Decomposing Attitude (relative advantage, compatibility and complexity)
Rogers (1995) argued that the attitudinal belief has three innovation characteristics that influence behavioural intentions, which consist of relative advantage, complexity and compatibility. Relative advantage is defined as an innovation factor that significantly affects attitude (Taylor & Todd, 1995). This component presents some benefits to the model, such as image, satisfaction, economic benefits improvement and convenience (Rogers, 1983). Relative advantages should be positively connected to attitude (Taylor & Todd, 1995). The link between perceived relative advantage and attitude has been supported by numerous studies related to IT usage. Morris and Dillon’s (1997) study on Netscape usage among students revealed that the attitude towards using the browser was positively influenced by perceived relative advantage (perceived usefulness). George and Kumar (2013) indicated that perceived usefulness positively impact on customer satisfaction in Internet banking. A survey by Chau and Hu (2001) investigating physicians’ acceptance of telemedicine technology also indicated the significant influence of perceived relative advantage on attitude. In an online survey exploring Internet users’ intention to shop online, Chen, Gillenson and Sherrell (2002) found that higher perceived relative advantage (perceived usefulness) resulted in a more favourable attitude towards online shopping.

Compatibility is the degree to which the innovation fits with the positional adapter’s existing values, previous experiences and current needs (Rogers, 1983). Compatibility is likely to be positively connected to adoption. Tan and Teo (2000), in their study on adoption of Internet banking in Singapore, suggested that users who perceive Internet banking as compatible to their values developed positive attitude about the technology and were more likely to adopt it. In an exploratory study comparing adopter and non-adopter beliefs about Internet banking, Gerrard and Cunningham (2003) suggested the need for banks to highlight positive characteristics of the technology such as compatibility to encourage its usage. They found that the adopters of Internet banking felt the technology was more compatible to their lifestyle. Finally, in a study involving 82 brokerage firms, Lau (2002) found that compatibility had a significant effect on attitude of using online trading.
Complexity signifies the degree to which an innovation is perceived to be complicated to understand, learn or operate (Rogers, 1983). In general, the simpler an innovation is to realize and utilize, the more likely that it will be adopted. Complexity (and its corollary, ease of use) has been found to be a significant factor in a technology adoption decision (Davis, 1989; Moore & Benbasat, 1991; Taylor & Todd, 1995). It should expect channel that is easy to use would encourage individuals to utilize the channel by developing a positive attitude about it. Previous studies have indicated that if technology is complicated and complex to use, the impact of complexity on attitude will be negative (Beiginia, Besheli, Ahmadi & Soluklu, 2011; Moore & Benbasat, 1991). In addition, the effect of perceived ease of use on attitude has been theorized and validated by numerous studies. In a cross-sectional study on potential adopters and users of Microsoft’s Windows 3.1, Karahanna, Straub and Chervany (1999) found that perceived ease of use had a significant influence on attitude towards adopting the software among the potential adopters. Lau’s (2002) study on online trading revealed the significant influence of perceived ease of use on attitude. A similar result was also revealed in the study by other researchers (e.g., Bhattacherjee, 2000; Taylor & Todd, 1995).
Moreover, Haque and Khatibi (2005) and Mumtaz et al. (2011) demonstrated that online shopping was still not compatible with Malaysian consumers. In fact, a majority of Malaysians use the Internet for non-shopping purposes. In line with the argument and findings discussed, brick-and-mortar store is the channel which is compatible with a majority of Malaysian consumers. In addition, it would be expected that Malaysians who perceive relative advantage and compatibility of the Internet channel would more likely have a positive attitude towards using the technology. Taylor and Todd (1995) illustrated that according to prior empirical study on the correlations among these perceived characteristics (Rogers, 1983; Tornatzky & Klein, 1982), it would be likely that relative advantage and compatibility are positively associated to attitude. On the other hand, Beiginia et al. (2011) found out that relative advantage and complexity have a positive effect on attitude (Figure 1).
Decomposing Subjective Norm
Normative belief is a component of SN (Fishbein & Ajzen, 1975). An individual’s normative structure, that is, his or her beliefs about what important others think about the behaviour in question, should directly influence his or her SN, or perceptions of the social pressure to comply with expectations about engaging in the behaviour (Ajzen, 1991). Researchers have identified several reference groups who may exert social pressure on individuals to perform a certain behaviour (Ajzen & Madden, 1986; Fishbein & Ajzen 1975; Madahi, Sukati, Mazhari & Rashid, 2012). Taylor and Todd (1995) found that peers and superiors exert significant influence on individuals to use computers at computing resource centre. Parthasarathy and Bhattacherjee (1998) in their study on online services found that friends, co-workers and relatives, which they called interpersonal influence, influence users forming their initial adoption decisions. In a study on what makes consumers buy from the Internet, Limayem, Khalifa & Frini (2000) found that family members, media and friends were reference groups that influenced consumers to purchase online. Lau’s (2002) investigation on factors that influence the adoption of online trading showed that competitors, customers, decision-makers and employees were significant reference groups influencing brokers’ decision to adopt the technology. In a consumer context, shoppers’ purchase decisions are likely to be influenced primarily by family and nonfamily referents (Ryan & Bonfield, 1980). In a retailing context, various sources, such as friends, family, co-workers, advertising and internet news groups, can have an impact on the consumers, and the composition of a group of others importance is likely to vary based on the context of the behaviour (Lim & Dubinsky, 2005).
It is also expected that Malaysian consumers will be significantly affected by important groups (e.g., friends, relative and colleagues) (Madahi & Sukati, 2012; Safiek, 2009). It can be inferred that if retailers and marketers want to increase the number of Malaysian consumers to use Internet or stores channel and retain consumers to not change channel, they need to focus on reference group in this respect. This further implies the importance of providing Internet or stores services of the highest quality possible because negative word of mouth from these groups will reduce Internet or stores consumers’ channels acceptance of those who are closest to them. Based on the results of the studies discussed above, three reference groups are identified (i.e., friends, family and co-workers) who may affect individuals’ perceived social pressure (i.e., SN) on whether to switch or not to switch the channel.
Decomposing Perceived Behavioural Control
In this study, control beliefs are decomposed into two constructs: self-efficacy and facilitating conditions. Bandura (1982) reported that self-efficacy is referred to an individual’s perception of how well the person can carry out with a needed action to deal with prospective situations or it is confident that the person is able to successfully carry out behaviour. Besides, self-efficacy has significant influence on PBC (Bandura, 1982). Triandis (1980) reported that facilitating conditions is the second component of PBC which also significantly affects PBC. Facilitating conditions impact PBC, which eventually influences the behaviour or the outcome. These variables are within the control of the consumer and facilitate the behaviour. The facilitating conditions have been categorized into information search, price or products. In essence, the absence of any of these facilitating conditions represents barriers to switching channels and may inhibit the formation of intention; however, the presence of facilitating conditions may not, per se, encourage channel switching.
Previous research has shown that different channel usage and channel switching (e.g., search online, purchase stores; search stores, purchase online) are mainly influenced by consumer perceptions of channel information (Mathwick, Malhotra & Rigdon, 2002; Noble, Griffith & Weinberger, 2005; Verhoef et al., 2005). While consumers have achieved more information about a product/service, they will make better decisions. Besides, to get information, consumers prefer to select a way that is less costly for seeking and buying services or products. Furthermore, studies on consumers’ channel switching/choice show that contact and exposure to the retailer/media significantly and positively affect consumers’ channel choice/switching.
The literature on consumer store choice suggests that higher costs of channel access and usage (e.g., due to poor convenience or higher fees) result in a lower likelihood of visiting or using a channel (Berry, Seiders & Grewal, 2002). Consumers have increased understanding of comparable product/service prices across channels. Gaining this information increases a consumer’s knowledge, thus reducing perceived risk in relation to the purchase of the product/service (Albesa, 2007). While each channel can provide consumer price comparison information, obtaining this information is not costless, as it necessitates the expenditure of consumer resources (e.g., time) (Noble, Griffith & Weinberger, 2005). Thus, it can be argued that consumers weigh the cost–benefit relationship of obtaining price comparison in each channel, utilizing the channel that maximizes their value. It is argued that the consumer costs associated with gathering price comparison information are lowest for the Internet channel and highest for the brick-and-mortar stores channel.
Balasubramanian et al. (2005) illustrated self-efficacy as the capability and self-belief of consumers to utilize multiple channels, including brick-and-mortar stores and online, to finish an operation, beginning by searching for information and finishing with buying. Self-efficacy makes consumers selfconfident as well. It means consumers who have high perceptions of multichannel self-efficacy believe of themselves as skilled persons in choosing the most excellent service provider in diverse expenditure phases. While a consumer thinks that he/she is able and has perceived self-confidence to overcome different kinds of problems in different channels, there is more likelihood that the consumer switches the channel or selects multichannel. With respect to this study, it is anticipated that individuals who have high self-confidence (i.e., self-efficacy) to perform the channel switching will perceive they have the ability (i.e., high PBC) to switch either Internet or brick-and-mortar store channel.
Attitude, Subjective Norm and Perceived Behavioural Control towards Channel-switching Intention
The effect of attitude, SN and PBC on consumers’ behaviour intention has been evaluated by Ajzen and Fishbein (1980). Attitude is posited to be a predictor of intention to perform behaviour (Fishbein & Ajzen, 1975). Many studies have shown a significant influence of attitude towards a given behaviour on intention to perform the behaviour (Ajzen & Fishbein, 1980; Taylor & Todd, 1995). George (2004) demonstrated that the more positive the consumers’ attitude towards Internet purchasing, the stronger their intention to purchase online. The possibility of channel switching is high when a consumer has a positive attitude. Attitude towards switching channels is defined as the consumers’ evaluation of the desirability of using or switching a channel to purchase products. Using a deductive logic, favourable attitude is likely to encourage consumers to switch channels (Pookulangara et al., 2011).
Consumers’ selection of channels is influenced by the belief that people similar to them use that channel. Subjective norm suggests that behaviour is instigated by one’s desire to act as others act or think one should, and hence will reflect consumer perceptions of whether channel-switching behaviour is accepted, encouraged and implemented by the consumers’ circle of influence (Pavlou & Fygenson, 2006; Pookulangara et al., 2011). Hasan (2010) found the positive impact of SN on consumers’ intention for online grocery shopping. Gopi and Ramayah (2007) also supported positive influences of SN on intention to use Internet stock trading. A survey by Limayem, Khalifa and Frini (2000) of online consumers revealed the significant effect of SN on their intention to engage in online shopping. Pookulangara et al. (2011) claimed that SN is an important predictor of consumer channel-switching intention. Therefore, it can be inferred that consumers’ perceived social pressure to change channel would have a positive and significant effect on consumers’ channel-switching intention.
According to the TPB (Ajzen, 1991), PBC can influence actual implementation of a behaviour. Individuals who perceive higher ease or capability are likely to be more confident in performing a behaviour (e.g., purchase via the Internet) and thus actually implement the behaviour (i.e., choose Internet channel), compared to those who perceive less ease (e.g., switch online channel). Johnson, Moe, Fader, Bellman and Lohse (2004) also found that people were likely to use the Internet for purchasing products when they perceived less complexity to use the Internet. Those who used the Internet for purchase believed less difficulty to use and access the Internet, as compared to those who did not use the Internet for purchase. Moreover, in a study investigating factors that influence workers’ intention to use the Internet and World Wide Web at work, Chau and Hu (2002) found that worker’s intention to use the Internet was significantly affected by PBC. However, when customers are satisfied with the service quality of current offline stores and their purchase experience, they may not be confident enough to use web stores, according to the status quo bias theory. Lau’s (2002) study on online trading acceptance among brokers in Hong Kong revealed that intention to use the technology was positively influenced by the PBC.
It was also supposed that TPB would be positive in predicting Malaysian consumers’ channel-switching behaviour. For example, in many studies conducted in Malaysia (e.g., Gopi & Ramayah, 2007; Ramayah, Jantan, Noor, Razak & Ling, 2003; Yulihasri, 2004), it has been shown that attitude, SN and PBC are important predictors of intention to use online and offline channels or switch from a channel to another channel in Malaysia. Thus, attitude, SN and PBC have this possibility to positively and significantly effect on intention as well as on consumer channel-switching intention (Cialdini, Kallgren & Reno, 1991; Pookulangara et al., 2011, Rivis & Sheeran, 2003, Taylor & Todd, 1995) (Figure 1).
Method
The survey method in the form of Likert scale questionnaire has been widely used in marketing research (Kim et al., 2003; Sadeghi & Hanzaee, 2010; Sierra & McQuitty, 2005; Yoon, Lee & Lee, 2010; Yousafzai, Pallister, & Foxall, 2005; Yuksel, Yuksel & Bilim, 2010). This study adopted/adapted the questions from Pookulangara et al. (2011), Pookulangara and Natesan (2010), Ajzen and Fishbein (1980), George (2004), Beiginia et al. (2011), Taylor and Todd (1995), Yang, Park and Park (2007), Verhoef et al. (2005), Sproles and Kendall (1986), Mokhlis and Salleh (2009), Noble, Griffith and Weinberger (2005), Smith et al. (2008), Elliott and Ainsworth (2012) and Ajzen (2002). According to the aim of the current study, questionnaire was distributed among Malaysian consumers. To assess and estimate the intention of consumers, components’ scales have been followed by the recommendations of Ajzen and Madden (1986).
To assess relative advantage, compatibility and complexity, items were adapted from Taylor and Todd (1995) and Beiginia et al. (2011). Ten items are developed to examine the impact of relative advantage, compatibility and complexity on attitude. Six items to assess NB (friends, family and co-workers) are adapted from Pookulangara et al. (2011), Ajzen and Fishbein (1985), Pookulangara and Natesan (2010) and George (2004). To assess the effect of self-efficacy and facilitating condition (i.e., price and information) on PBC, ten items are adapted from Chiu et al. (2011), Pookulangara et al. (2011), Eastlick and Feinberg (1999), Noble, Griffith & Weinberger (2005) and Dickerson and Gentry (1983).
Attitude has been adapted based on the instrument applied and validated by Pookulangara et al. (2011) and Yang et al. (2007). According to the report of Pookulangara et al. (2011), behavioural attitude for brick-and-mortar stores and the Internet were conceptualized and was calculated by a four-item scale. Items to evaluate SN were adapted from the instrument used by Verhoef et al. (2005) and Pookulangara et al. (2011). Subjective norm was conceptualized brick-and-mortar stores and Internet and was measured via a five-item scale (Pookulangara et al., 2011). Three items were adapted to assess PBC from the instrument used and validated by Pookulangara et al. (2011).
Participants and Data Collection
A survey questionnaire is constructed to collect the necessary data to answer the research questions as being framed on related effective factors of consumers’ channel-switching intention. The study is based on simple random sampling, with the survey instrument administered to the Malaysian consumers from regions of Klang Valley and Penang. Klang Valley and Penang are the most populated regions in Malaysia and as one of the main channels in this study is Internet, the population based in Klang Valley and Penang, Malaysia is chosen for sampling (Raman & Annamalai, 2011). The chosen sampling population from Klang Valley and Penang has basic understanding and experience on the Internet and online purchasing, respectively, and they are actively involved in online transactions (Raman & Annamalai, 2011). Questionnaire was distributed to 615 respondents in Malaysia and 497 sets were returned which made up to 81 per cent of the overall responses. This is a valid percentage as the response rate is sufficient and ready to be measured. In addition, of the participants’ surveyed, about 118 (19 per cent) of the responses were deemed unusable due to the failure of the respondents to complete major portions of the survey questionnaire. The respondents had to meet the criteria of shopping online and/or brick-and-mortar store prior to participating in the survey.
Questionnaires were distributed using mall intercepts at selected retail outlets located at one of the regions in Klang Valley and Penang. Researchers distributed questionnaires personally to the respondents in different universities and retail outlets including supermarkets, small retail stores, departmental stores, specialty stores, hypermarkets, malls as well as libraries. These places cover the target population of this study and help to find different people in different fields. The objective of the current study is to evaluate consumer channel-switching intention between Malaysian consumers; hence, the race of population is Malaysian only (including Malay, Chinese and Indian).
Data Analysis
The purpose of this study is to investigate the influence of behavioural attitude and SN and PBC on channel-switching intention. Theory of planned behaviour is used in the current research. The partial least square (PLS) based on structural equation modelling (SEM) technique was used to test research hypotheses as well as research model as suggested by other researchers who have studied based on the behavioural models such as TPB and TRA models (Blue, Wilbur & Marston-Scott, 2001; Bock, Lee, Zmud & Kim, 2005; Chang, 1998; Lin & Lee, 2004; Millar & Shevlin, 2003; Ryu, Ho & Han, 2003). The SEM is a technique that seeks to represent the observed data in terms of a number of structural parameters defined by a hypothesized underlying model (Hair, Ringle & Sarstedt, 2011). Structural equation modelling is a theory-based approach that has the ability to bring data and theory together. Structural equation modelling is used in business and marketing studies to empirically test the complex models. This study also used the SEM approach to test the research hypotheses and data analysis. Unlike other statistical methods, SEM tests the model paths and model fit. Structural equation modelling also allows the assessment of complex interrelated dependence relationships and incorporates the effects of measurement error on the structural coefficients (Hair, Anderson, Tatham & Black, 1998). In SEM, two types of variables are used: exogenous variables and endogenous variables. Therefore, since in this study there are some exogenous variables (i.e., relative advantage, compatibility, complexity, NB, facilitating conditions, self-efficacy, attitude, SN and PBC) and their effect on the endogenous variable (i.e., channel-switching intention) has to be examined, the use of SEM is necessary. Pilot testing was conducted to clarify the terms used in the questionnaire before operating the main survey.
The survey instrument was pre-tested for content validity and adjustments were made prior to main data collection. The survey instrument was pre-tested with consumers (N = 30). It was assumed that these consumers had used at least one channel (i.e., brick-and-mortar store and/or the Internet) in the last 6 months. These consumers were comprised of professors and senior lecturers at the University of Malaysia (UM) and Universiti Putra Malaysia (UPM). Based on feedback from the pilot study group, minor adjustments were made to the instrument scale. This feedback was implemented into the instrument and content validity claim was established accordingly. Items were revised to ensure readability and for logical flow of questions. The results of the data analyses were organized into the following sections: (i) respondents profile, (ii) measurement model and (iii) structural model.
Respondents Profile
With reference to Table 1, a remarkable percentage of the respondents (57.9 per cent) are less than 34 years old. In addition, majority of the respondents are females. There are 283 female respondents (56.9 per cent) and 214 male respondents, which contributes to 43.1 per cent of the total respondents participated in this study. Of these respondents, 51.1 per cent of the respondents are Malay, followed by 28.6 per cent Chinese and 20.3 per cent Indian. Table 1 further indicates that 57.7 per cent of the practitioner possess bachelor’s degree, 33.8 per cent possess master’s degree and 8.5 per cent possess doctoral degree.
Respondents Profile
Other External Variables
Table 2 shows descriptive statistics of the Internet usage and brick-and-mortar stores for searching for information as well as purchasing in the last 1 year. Findings reveal that 65.8 per cent of the respondents had searched for information online and 89.3 per cent preferred to search for information in brick-and-mortar stores in the last 1 year. Additionally, 39 per cent of respondents had purchased online and 98.2 per cent had purchased from brick-and-mortar stores in the last 1 year.
Descriptive Statistics of the Respondents
Measurement Model
The PLS technique is capable of calculating key output such as factor loadings, Cronbach’s alpha, composite reliabilities (CRs) and average variance extracted (AVE) to establish the validity and reliability (Fornell & Cha, 1994). We ran a confirmatory factory analysis in SmartPLS 2.0 and assessed reliability and convergent validity for the reflective constructs. In order to examine the construct validity, first, the standardized estimated loading should be ideally higher than 0.7 (Hair et al., 1998). Validity and reliability are evaluated by computing cross loadings, AVE, CR and Cronbach’s alpha (Bagozzi & Yi, 1988). The general acceptable cut-off values are 0.50 for AVE and 0.70 for both CR and Cronbach’s alpha (Bagozzi & Dholakia, 2002; Churchill, 1979; Fornell & Larcker, 1981; Hair et al., 1998). Thus, based on CR and AVE, data reduction techniques were applied to the variables in order to convert the individual variable items into manageable smaller number of dimensions.
Internet
All measurement variables with loadings under 0.70 were removed. This included the removal of the first item of complexity as well as two items of NB. After excluding these items, factors were computed again. In addition, Cronbach’s alphas were well above the acceptable level ranging from 0.71 to 0.94 for relative advantage, compatibility and complexity, NB with 0.95, information with 0.95, price with 0.95, self-efficacy with 0.84, attitude with 0.93, SN with 0.96, PBC with 0.92 and channel-switching intention with 0.94. In addition, CR was 0.97, 0.98, 0.87, 0.96, 0.96, 0.97, 0.91, 0.96, 0.97, 0.95 and 0.96 for relative advantage, compatibility, complexity, NB, information, price, self-efficacy, attitude, SN, PBC and intention, respectively (Table 3). Therefore, based on Cronbach’s alpha and CR, all these latent variables regarding Internet channel had reliability higher than 0.7. In addition, AVE was 0.88, 0.94, 0.78, 0.86, 0.87, 0.92, 0.76, 0.87, 0.87, 0.86 and 0.89 for relative advantage, compatibility, complexity, NB, information, price, self-efficacy, attitude, SN, PBC and channel-switching intention, respectively. These measurements were well above the 0.50 recommended levels (Fornell & Larcker, 1981). These results indicated that the constructs associated with outer measurement models exhibited satisfactory convergent validity.
Factor Analysis and Reliability
Brick-and-mortar Stores
Based on the factor loading analysis, one indicator of complexity and two indicators of SN were revealed (items less than 0.7) and software was ran again to compute better reliability for each construct. Thus, all factors loaded were standardized (Table 3). Cronbach’s alpha was 0.94, 0.97, 0.79, 0.97, 0.97, 0.96, 0.89, 0.96 and 0.90 and CR was 0.96, 0.98, 0.87, 0.98, 0.98, 0.97, 0.93 and 0.93 for relative advantage, compatibility, complexity, NB, attitude, SN, PBC and channel-switching intention, respectively. These results approved reliability of these constructs. High score of AVE shows the convergent validity for relative advantage, compatibility, complexity, NB, information, price, self-efficacy, attitude, SN, PBC and channel-switching intention (AVE was in the range from 0.86, 0.94, 0.77, 0.89, 0.91, 0.89, 0.87, 0.94, 0.93, 0.82 and 0.83, respectively) (Table 3).
Structural Model
PLS can evaluate theoretical hypotheses as well as indicate the existence of relationships for further testing (Chin, Marcolin & Newsted, 2003). Partial least squares can be used in estimating latent structural models that are indirectly observed by multiple indicators for theory testing and development as well as offering predictive applications (Anderson & Gerbing, 1998). The focus of the assessments of structural paths in PLS is on the inner model and the significance of the paths can be measured by bootstrapping critical ratios.
In the structured model of this study, all constructs had reflective items, as depicted in Figures 2 and 3. The significance of the reflective outer-measurement model via bootstrapped t-values of item loadings was assessed. The bootstrapping method of sampling was used to estimate the precision of the reflective outer-measurement models. Bootstrap t-values were computed on the basis of 500 bootstrapping runs. The model parameters as depicted in Figures 2 and 3 were estimated using the SmartPLS with the focus here on the inner results as they relate directly to the hypotheses. Thus, an examination for each exogenous and endogenous constructs of the model was undertaken via path weight coefficients, standard error, R2 and bootstrap critical ratios (t-values).
The primary evaluation criteria for the structural model are the R2 measures and the level and significance of the path coefficients (Lohmöller, 1989). Because the goal of the prediction-oriented PLS-SEM approach is to explain the endogenous latent variables’ variance, the key target constructs’ level of R2 should be high (Lohmöller, 1989). The judgement of what R2 level is high depends, however, on the specific research discipline (Hair et al., 2011), whereas R2 results of 0.20 are considered high in disciplines such as consumer behaviour (Hair et al., 2011).
With the collected data from the survey, consumer channel-switching behaviour is predicted in regards to the Internet and brick-and-mortar stores channels. All the dimensions are included in the final data analysis, except for the three dimensions for Internet channel (first item of complexity and items five and six of NB). Also five dimensions for brick-and-mortar stores (second item of complexity, first and last items of information and third and fifth items of SN) were removed because of factor loadings less than 0.7. After these low items were extracted, factors were analyzed again and sufficient supports of reliability and validity of the measurement scales were achieved. As the measurement assessment supported the validity and reliability of measured items, a series of hypothesis tests proposed in the model are followed using SmartPLS techniques.


Hypothesis Testing: Internet
Hypotheses are tested in the following discussion for consumer channel-switching intention from the Internet to a brick-and-mortar store. Relative advantage, compatibility and complexity were the exogenous (independent) latent constructs that were utilized to predict attitude as endogenous (dependent) latent construct towards channel-switching intention in the Internet channel. The results in Table 4 and Figure 2 indicate that compatibility and complexity have a positive and strong relationship with attitude (β = 0.37 and 0.36 and t-values = 4.90 and 7.77, respectively) (p < 0.01) and support H2a and H3a. Somewhat unexpectedly, relative advantage does not influence attitude because path coefficient and t-value are not significant; therefore, the findings do not support H1a (relative advantage on attitude), but H2a and H3a (compatibility and complexity) will significantly predict attitude towards switching channel from the Internet to brick-and-mortar stores. The results show that NB with t-value = 16.12 and β = 0.59 (p < 0.01) strongly and significantly influence SN. Thus, the results support H4a, which declared that NB positively influenced SN towards channel switching from the Internet to brick-and-mortar stores.
Information, price and self-efficacy were the exogenous constructs that were used to predict PBC. Findings indicated that self-efficacy with t-value of 7.79 and β = 0.36 (p < 0.01), information with t-value of 2.51 and β = 0.19 (p < 0.05) and price with t-value of 1.71 and β = 0.11 (p < 0.1) positively and significantly affected PBC. Self-efficacy influenced PBC more significantly. Thus, the results revealed that H5a (information), H6a (price) and H7a (self-efficacy) positively affected PBC towards channel-switching intention from the Internet to brick-and-mortar stores.
Attitude, SN and PBC were the exogenous constructs for the endogenous construct channel-switching intention. The results show that attitude (t-value = 4.43 and β = 0.22) and SN (t-value = 6.35 and β = 0.41) positively and significantly affected consumers’ channel-switching intention. The path coefficient between these three variables and channel-switching intention was significant at 0.01. However, PBC (t-value = 0.68 and β = 0.03) did not predict consumers’ channel-switching intention. Therefore, H8a (attitude) and H9a (SN) positively affected channel-switching intention from the Internet to brick-and-mortar stores (Table 4 and Figure 2).
Results of Hypotheses Testing: Internet
Results of Hypotheses Testing: Brick-and-mortar Stores
Hypothesis Testing: Brick-and-mortar Stores
The findings indicated that relative advantage and compatibility with β = 0.44 and 0.36 and t-values = 5.70 and 4.45, respectively, significantly affected attitude towards channel-switching intention from brick-and-mortar stores to the Internet channel. Thus, H1b (i.e., relative advantage) and H2b (i.e., compatibility) positively affected behavioural attitude towards channel-switching from brick-and-mortar stores to Internet. On the other hand, complexity did not affect attitude with insignificant path coefficient (β = 0.03 and t-value = 1.37); thus, H3b was not supported. Based on the results, NB (β = 0.80 and t-value = 39.48) strongly and significantly affected SN. Hence, H4b was supported.
As summarized in Table 5, information with β = 0.30 and t-value = 5.14; price with β = 0.30 and t-value = 5.57; and self-efficacy with β = 0.22 and t-value = 5.20 positively and importantly affected PBC. Thus, H5b, H6b and H7b positively and significantly affected PBC towards channel-switching from the brick-and-mortar stores to the Internet. In addition, the results revealed that attitude (t-value = 4.57 and β = 0.33) and SN (t-value = 4.71 and β = 0.29) positively and significantly affected channel-switching intention from brick-and-mortar stores to the Internet. Hence, H8b and H9b were supported. Only PBC did not affect channel-switching intention with β = 0.01 and t-value = 0.08. Therefore, H10b was not supported (Table 5 and Figure 3).
Discussion and Conclusion
In addition, the present study provides evidence of consumers’ channel-switching intention focusing on the effect of attitude, SN and PBC on switching intention. Based on the data analyses and findings, it can be notified that exogenous variables in both Internet and brick-and-mortar stores channels have differences as well as similarities while predicting channel-switching intention. In the current study, relative advantage, compatibility and complexity are three exogenous constructs which differently predicted attitude towards channel-switching intention in both channels (Internet and brick-and-mortar stores). The significant effect of relative advantage on attitude towards channel-switching intention from brick-and-mortar stores to Internet is not surprising given the fact that the extrinsic benefits of using Internet channels are numerous for those consumers who prefer online shopping. Some of the benefits are faster and convenient execution of online transactions, lower economic cost (reduced commuting and time saving), convenient online access to product information, etc. The results of this study imply that individuals form positive attitude towards channel-switching intention from stores to use Internet because of these benefits. The significant effect of attitude on intention found in this study and also in other studies (Ajzen & Fishbein, 1985; Pookulangara et al., 2011; Shim et al., 2001) implies that before individuals start using the Internet channel, a positive attitude towards the technology needs to be formed. The benefits, such as convenient and economic gains as well as time saving, can be highlighted as positive features of the Internet channel (Jepsen, 2007; Morton, Zettelmeyer & Silva-Risso, 2001; Ratchford, Lee & Talukdar, 2003; Zettelmeyer, Morton & Silva-Risso, 2006). Retailers and marketers in Malaysia should continue publicizing these benefits so that customers and potential customers will develop a positive attitude towards the Internet channel.
The linkage between compatibility and attitude has also been found in other studies (e.g., Rogers, 1983; Taylor & Todd, 1995; Tornatzky & Klein, 1982). This finding suggests that a positive attitude towards channel-switching intention in the Internet and brick-and-mortar stores channels can be developed by highlighting the compatibility of the technology as well as traditional stores with individual existing values and needs. Communicating, working and entertaining online and stores shopping reflect the current and future lifestyle. Some of the consumers prefer online shopping due to the fact that they are accessed to more and faster product information through Internet channel. On the other hand, some of the consumers change channel from Internet to store because they are more comfortable with store and the traditional channel is more compatible with most of Malaysian consumers’ lifestyle. In addition, some of the consumers use both Internet and brick-and-mortar stores channels to decrease cost of shopping (e.g., consumers searching for information through online and purchase in a store).
As already mentioned, complexity significantly predicted attitude towards channel-switching intention from the Internet to brick-and-mortar stores, but did not affect attitude towards channel-switching intention from store to the Internet channel. It shows that the Internet channel is still not very easy to use for most of the Malaysian consumers and they preferred to switch channels from the Internet to stores due to the complexity of the Internet channel. As a result, consumers change channel from the Internet to stores because brick-and-mortar store is more compatible with their lifestyle and is easier to use. The findings imply that retailers and marketers need to make the Internet channel easy to use; otherwise, consumers will prefer to use the store channel.
One interesting aspect of this finding is the great effect of relative advantage compared to complexity on attitude towards channel-switching intention from brick-and-mortar stores to the Internet. This suggests the significant role of relative advantage (usefulness) over complexity in influencing individual’s attitude to change channel from stores to the Internet channel. We believe, with respect to increasing a positive attitude towards using the Internet channel, more stress should be put in emphasizing the usefulness of Internet channel. It does not mean that we should abandon the efforts to make the Internet channel easy to use. It indicates a higher need to promote the usefulness (relative advantages) of the online shopping and Internet channel over its complexity.
In the current study, NB (friends, family and co-workers) strongly predicted SN towards channel-switching intention in both the channels (Tables 4 and 5). Previous research works have indicated that NB also directly and positively affects SN in both online and store purchase intention studies (Bhattacherjee, 2000; Evans, Christiansen & Gill, 1996; Lim & Dubinsky, 2005). From a practitioner standpoint, these findings suggest that there are three reference groups who influence an individual to change channel from Internet to brick-and-mortar stores channel or from stores to Internet channel. Thus, taking these reference groups into account, more effective advertising and promotional efforts can be developed. The results underscore the importance of using positive testimonials from these reference groups to promote either Internet or brick-and-mortar store channel.
Perceived behavioural control as an endogenous construct was predicted by self-efficacy and facilitating condition as exogenous constructs. Information was a significant exogenous construct for PBC regarding channel-switching intention in both the channels. Previous studies have shown that consumer information about product, services and channels would lead them to decide in order to choose a channel/multichannel or otherwise (Klein, 1998; Swinyard & Smith, 2003). Besides, prior research works on channel-switching behaviour indicated that consumers’ perceptions of channel switching were significantly affected by their knowledge and information about channels (Mathwick, Malhotra & Rigdon, 2002; Noble, Griffith & Weinberger, 2005; Verhoef et al., 2005). Based on the results, in this research, the information affected PBC more significantly in regards to channel-switching intention from brick-and-mortar stores to the Internet. It shows that if consumers have high availability of information online, this will lead them to change channel from stores to the Internet. It can be also inferred that Malaysian consumers’ knowledge and information about either Internet or brick-and-mortar stores impacted on their decision to switch channels.
Perceived behavioural control was also influenced by price. Multichannel consumers are able to compare price of channels and select the best one (Brooks, Kaufmann & Lichtenstein, 2008; Degeratu, Rangaswamy & Wu, 2000). Previous studies have shown that consumers evaluate price of channels and then choose/switch channel based on their findings (Grewal, Iyer, Krishnan & Sharma, 2003; Ramaprasad, Douglas & Pillai, 2010). In addition, according to prior studies and in regards to associated cost with collecting information of price comparison, the highest and lowest costly channels were brick-and-mortar stores and Internet, respectively (Degeratu et al., 2000; Ramaprasad et al., 2010). However, in the current research, price was positively associated with both the Internet and brick-and-mortar stores channels, but findings have shown that price affected PBC more significantly in regards to channel-switching intention from brick-and-mortar stores to the Internet (Tables 4 and 5). It means that a high product price and difficulty in terms of finding the lowest price in brick-and-mortar stores impacted consumers’ PBC to change channel from stores to the Internet more significantly.
Self-efficacy is defined as ‘concerned with judgments of how well one can execute courses of action required to deal with prospective situations’ (Bandura, 1982). Self-efficacy is a person’s judgement about being able to perform a particular activity (Bandura 1977, 1982). Thus, self-efficacy reflects how confident Malaysian consumers are about changing channel from brick-and-mortar stores to the Internet and vice versa. Findings in this study have shown that self-efficacy was strongly and positively associated with PBC regarding channel-switching intention in both the channels. This finding implies that efficacy or confidence to switch channel and use either Internet or brick-and-mortar stores channel. In the case of Internet channel, among Malaysian consumers, lack of confidence in using a new software may suggest an organization’s need to provide additional training to their employees. The solutions may not be so obvious. However, some suggestions are provided that might be used by retailers and marketers to improve individual’s self-efficacy towards using the Internet channel in Malaysia.
Attitude was an important predictor for both the Internet and brick-and-mortar stores channels. Prior studies also supported that attitude significantly and positively impacted consumers’ intention (Ajzen, 1991; Rhodes & Courneya, 2003; Shih & Fang, 2004; Shim et al., 2001). Malaysian consumers changed channels from the Internet to brick-and-mortar stores and vice versa when a channel is not favourable. The results of the study confirmed the role of attitude towards consumers’ channel-switching intention in regards to both the channels. This result is in line with previous findings of the role of attitude towards online and offline consumers’ shopping behaviour and consumers’ channel-switching behaviour (Abdul-Muhmin, 2011; Gopi & Ramayah, 2007; Kim & Park, 2005; Pookulangara & Natesan, 2010; Pookulangara et al., 2011; Shim et al., 2001; Wang, Chen, Chang & Yang, 2007). As discussed earlier, relative advantage, compatibility and complexity differently affected attitude in the Internet and brick-and-mortar stores channels. Retailers and marketers need to pay attention to these factors as well as on attitude itself to find out how consumers’ behavioural attitude is influenced by these factors and how attitude affects consumers’ channel-switching intention to whether switch channel from the Internet to brick-and-mortar stores and vice versa.
Moreover, research works on relationship between SN and intention have shown different results. Some of the researchers indicated that SN did not predicted intention in their studies and some other investigators claimed that there is a strong and significant association between SN and consumers’ intention (Chau & Hu, 2001; Mathieson, 1991; Venkatesh & Davis, 2000). The statistical results were, in general, consistent with the previous findings related to the stores and online shopping intention of consumers’ channel-switching intention (Nicholson et al., 2002; Pavlou & Fygenson, 2006; Pookulangara et al., 2011; Ramayah et al., 2003). The results showed that SN had a significant influence on consumers’ channel-switching intention. Thus, based on the findings of this research, Malaysian consumers are significantly influenced by judgement of other significant factors in order to switch channel from the Internet to brick-and-mortar stores and vice versa.
Perceived behavioural control is the third component of TPB that predicts intention. Perceived behavioural control refers to people’s perception of the ease or difficulty of performing the behaviour of interest. In other words, it is an individual’s confidence in his/her ability to perform the behaviour intention based on the presence or absence of requisite resources and opportunities (Ajzen & Madden, 1986; Mathieson, 1991). Previous studies have claimed that consumers who perceived more capabilities or ease are more likely to act on an intention and switch from one channel to other or be loyal with a channel (Hsieh & Liao, 2011; Johnson et al., 2004; Shim et al., 2001; Wang et al., 2007). The results of this study revealed that PBC did not predict channel-switching intention in both the Internet and brick-and-mortar channels. Regarding consumers’ channel-switching intention, it can be inferred that when Malaysian consumers perceived power, control beliefs and feel able to change channel from the Internet to brick-and-mortar stores and vice versa, they are less likely to do so. These results are in line with the findings of Pookulangara et al. (2011) (in the case of switching channel intention from the Internet to stores/catalogue channel) and Lim and Dubinsky (2005) (an investigation on online shopping).
This study presents an investigation on consumers’ channel-switching intention in regards to two channels (i.e., the Internet and brick-and-mortar stores) in Malaysia. In view of this, an imperative theoretical contribution of this research is to study and develop the understanding of Malaysian consumers’ channel-switching behaviour by applying TPB. Academically, this study extends the application of the TPB model to consumers’ channel-switching behaviour in Malaysia. This research is also important because the study on consumers’ channel-switching behaviour is still new and needs further investigation (Choi & Park, 2006; Kim & Park, 2005; Pookulangara et al., 2011). On the other hand, the numbers of multichannel consumers are rising; hence, it is necessary to study consumer channel-switching behaviour with regard to the Internet and/or brick-and-mortar stores channels (Pookulangara et al., 2011). In addition, since this study is carried out in Malaysia, the current study extends the existing body of knowledge related to the TPB. Indirectly, the current research examines the robustness of the theory in its capability to measure adoption intentions within different sampling frames. Finally, the study has utilized a well-grounded theory and, therefore, contributed to our understanding of factors that are relevant to the acceptance of consumers’ channel-switching behaviour in Malaysia.
This research decomposed the attitudinal structure of individual’s intention to adopt consumer’s channel-migrating behaviour by considering two channels (traditional stores and especially Internet as a new technology). This provides more precise understanding of the antecedents of adoption (Taylor & Todd, 1995). Better understanding of these factors assist retailers and marketing executives in determining which ones are important to their customers’ intention to adopt consumers’ channel-switching behaviour in regards to Internet and brick-and-mortar stores channels. This also helps retailers and marketing executives to formulate strategies that could significantly affect channel-switching adoption among their consumers. Many multichannel consumers among these two channels (i.e., Internet and brick-and-mortar stores) in developing countries might share the same exposure, experience or go through the same phase of progress in their channel-switching behaviour endeavours as consumers that would change the channel from Internet to brick-and-mortar stores or vice versa as consumers’ channel-migrating behaviour in Malaysia. Since consumers in other developing countries may share the same issues faced by the Malaysian consumers, it is expected that the finding from this research will help retailers and marketing executives in other developing countries in understanding the consumers’ channel-migrating behaviour by considering Internet and brick-and-mortar stores channels in the current study as well.
Implications and Recommendations
From a theoretical perspective, the results of this dissertation have an important implication for the theory of planned behaviour. Theory of planned behaviour (Ajzen, 1991) was chosen as the guiding framework for this study. Theory of planned behaviour was decomposed for several reasons. By decomposing attitudinal structure, it is expected to have a higher explanatory power and a more precise understanding of the antecedents of behaviour (Taylor & Todd, 1995). Limitations of the TPB influenced researchers to decompose the TPB model. In the TPB, the belief structures are typically combined into unidimensional constructs. This integration of beliefs has been subject to criticisms. Combining multidimensional beliefs structures into a unidimensional construct can cause difficulty in interpretation specificity (Bagozzi, 1981; Shimp & Kavas, 1984). For instance, based on a review of literature on innovation adoption, the three key determinants of the adoption decision are perceptions of relative advantage, compatibility, and complexity (Rogers, 1983; Tornatzky & Klein, 1982). Internet is one of the innovation adoptions that is used by consumers for online shopping. Thus, as one of the channels of this study was the Internet, three dimensions (relative advantage, compatibility and complexity) were implied to evaluate the effect of attitude towards channel-switching intention.
Additionally, results of the study demonstrated once again the robustness of the decomposed TPB for helping to explain consumers’ channel-switching behaviour. Other studies have also successfully used the TPB as a theoretical framework from which to explain intention towards multichannel shopping behaviour or channel-switching behaviour (Chau & Hu, 2002; Chiu et al., 2011; Lohse & Spiller, 1998; Stone et al., 2002; Vijayasarathy, 2002; Yang et al., 2007). As more and more studies of Internet purchasing behaviour and its antecedents are done within the TPB framework, we are more able to discover and confirm which antecedents are most important, helping us build a robust theory of channel-switching behaviour.
Attitude is anchored to relative advantage, compatibility and complexity and SN was influenced by NB. Normative belief is defined as the influence of reference group in order to perform behaviour (Amin & Ramayah, 2009; Fishbein & Ajzen, 1975). Previous studies of consumer shopping behaviour and channel-switching behaviour indicated that SN is influenced by NB (George, 2004; Lim & Dubinsky, 2005; Ryan & Bonfield, 1980). Findings of this research also confirmed that NB is a very strong predictor of SN towards channel-switching intention in both the channels.
Furthermore, in the pure TPB model, the path from PBC to intention has failed to achieve significance. Ajzen and Madden (1986) claimed that the PBC is less likely to be related to intention. This suggests that the relationship of PBC to intention is tenuous and merit further investigation. According to the measurement of this study, PBC also did not predicted channel-switching intention in both the channels. Additionally, two components were encompassed in the decomposed TPB model. Both facilitating conditions (price and information) and self-efficacy were significant determinants of PBC in this study. Price and information are known as facilitating conditions which predict PBC (Taylor & Todd, 1995; Triandis, 1980). Previous studies have shown that facilitating conditions affected PBC (Noble & Phillips, 2004; Park, Klein, Smith & Martell, 2009; Stigler, 1961; Yang et al., 2007). This is also conformed in the current research. Taylor and Todd (1995) found that self-efficacy predicted intention to use a wide range of technologically advanced products. Thus, an individual with a confident command of computer skills and familiarity with the Internet is more inclined to adopt Internet banking. Findings in this study indicated that self-efficacy affected PBC with respect to the Internet and brick-and-mortar channels.
The results of this study show that attitude and SN significantly affected consumer’s channel-switching intention regarding Internet and brick-and-mortar stores channels. The successful validation of these constructs on channel-switching intention demonstrates that the TPB model is well founded. In addition, from the viewpoint of consumers’ channel-switching behaviour in Malaysia, this study contributes positively to research utilizing a well-grounded theory.
Practical Implications
The decomposition of attitude suggests three antecedents of attitudes: relative advantage, compatibility and complexity. To build a positive attitude towards Internet channel, retailers and marketers need to publicize the benefits and advantages associated with online shopping such as faster and higher availability of product information, lower economic cost, etc. Results of this study showed that 98.2 per cent purchased their products from brick-and-mortar stores in the last 1 year; this confirms that the store channel is well suited to the Malaysian consumers’ lifestyle. On the other hand, only 39 per cent of Malaysian consumers purchased their products/services online in the last 1 year. Therefore, the Internet channel also needs to be highlighted as compatible with an individual’s existing values and needs. Findings of this investigation revealed that Malaysian consumers switched from the Internet channel to brick-and-mortar stores because they perceived that online shopping is complex and not easy to use. Doing financial transactions online can be linked to the current and future lifestyle where communication, work and entertainment are done online. To promote this positive attitude, retailers and even the government need to make the technology easy to use. Familiar interface designs may be one step towards this objective.
The findings of this study revealed that SN (i.e., the perceived social pressure to perform or not to perform a behaviour) significantly affected consumers’ channel-switching intention in both the Internet and brick-and-mortar stores channels. Hence, it can be indicated that individuals’ channel-switching intention in both channels was influenced by people who are closest to them. The decomposition of SN revealed that friends, family members and co-workers could influence individuals to change the Internet channel as well as the brick-and-mortar stores channel. Thus, advertising and promotional efforts by retailers need to take into account these reference groups who shape consumers’ norms. In addition, retailers and marketers may consider using positive testimonials from these reference groups to promote each of the Internet and brick-and-mortar stores channels. In addition, reference group is the significant parameter that affects some of the related marketing strategies such as customer relationship management, word of mouth and e-word of mouth. Thus, these strategies influence channel-switching behaviour and need to be considered by retailers and marketers as tools for an integral part of their marketing strategy.
Information significantly affected PBC regarding channel-switching intention in both the channels. Results of this research showed that consumers were influenced more significantly by information to switch channel from brick-and-mortar stores to the Internet. It confirmed the significant role of information on the Internet channel. In addition, the role of information in brick-and-mortar stores cannot be ignored. Thus, consumers utilize all the possible shopping channels for information search; multichannel retailing strategies can promote channel adoption and usage for both information search and purchase, thereby increasing customer satisfaction and customer loyalty (Biswas, 2004).
Moreover, although online search engines allow consumers to search for a product and the related information across stores more easily than in conventional stores, they nevertheless require consumers to spend time evaluating pages of search results. There is much evidence of visitors to sites becoming frustrated and abandoning their search for information or even their desire to buy something. Many customers simply give up on their attempts to do business with companies online. For example, some of the online shoppers do not like to make a purchase because the sites are too difficult to navigate and searching for information is not easy either (Hercz, 2000). The obvious conclusion is that many companies make it very difficult for visitors to use the Internet channel for searching for the desired information and to conclude the business. Thus, the Internet retailers should exert greater effort to make their sites more search friendly with easy navigation. Retailers and companies can also invest in technologies that search for the right information and retrieve the information as quickly as possible on behalf of the customer. In addition, multichannel retailing through online and offline channels can satisfy and attract more customers by providing a combination of information (through online and brick-and-mortar stores channels) to have better interaction with their consumers. As a result, this knowledge should provide retail managers a more targeted approach to managing satisfaction efforts for this segment.
Price is a critical factor which is always significantly considered by consumers in their decision-making for shopping and switching of channels. Higher price of information searching and/or purchasing of channels will lead to changing of channels by consumers. The cost of brick-and-mortar stores is higher than the cost of the Internet channel (Berry et al., 2002; Brooks et al., 2008; Degeratu et al., 2000; Ramaprasad et al., 2010). However, findings of this study also indicated that price influenced PBC regarding channel-switching intention in both the channels, but the effect of price on channel-switching intention from brick-and-mortar stores to the Internet channel was more significant. Therefore, consumers who prefer to switch to the online channel have significantly higher price intentions than those who prefer to change channels from the Internet to brick-and-mortar stores. The respondents appeared to value the potential for finding lower prices if they shop through the electronic channel. Online shoppers therefore tend to be more sensitive to price, possibly leading to a more price-sensitive segment in retailing.
Many brick-and-mortar companies should be advised to improve their easy accessibility of alternative price information, such as those seen at the online stores as well as on other online sites. In this respect, retailers can set up different technological advances, such as Web-based outlets, to differentiate the price-sensitive consumers from the price-insensitive ones. In addition, the difference in price-search intentions appeared to be a very influential factor for consumer channel switching, indicating that seeking for low-priced products could be an important objective of consumers who shop for products through the Internet channel. Thus, if online retailers want to be successful, they should stock sufficient lower priced product alternatives or offer more sales promotions.
Additionally, the findings suggest that the Internet channel (e.g., online websites) should be easy to navigate and interact with, so consumers can concentrate on the Internet channel. Consumers who feel confident about their skills of using the internet to shop are more likely to make purchases online; for the less confident consumers, help and assistance tools are essential in building up their skills and in increasing their willingness to purchase online. Online shopping can be appealing to consumers who seek convenience and perceive greater advantages in online shopping over shopping in traditional stores. It can be concluded that the design of the online channel must be able to deliver advantages such as useful product information and easy to compare products and prices online.
As retailing channels are expanding, retail managers are faced with the prospects and problems associated to channel proliferation and channel migration among their customer base (Rangaswamy & Bruggen, 2005). Retailers might be required to manage the progressively more difficult task of making a decision on which particular channels to use to reach their consumers and how to valuably organize their selected channel assortment (Marcus & Collins, 2003). Retailers are also faced with the challenge of encouraging customers to switch from higher cost, lower valued channels to lower cost, higher valued ones and managing changing consumer preferences across these channels (Thomas & Sullivan, 2005).
In general, the Internet retail is unlikely to completely replace traditional brick-and-mortar retail (Montoya-Weiss, Voss & Grewal, 2003); in reality, traditional stores are expanding their reach through the Internet channel by implementing multichannel strategies. Thus, the findings in this study may have significant implications for the retailing industry, including pure players and traditional brick-and-mortar businesses. Besides, it seems worthwhile to offer customers multiple transaction channels. Using multiple channels potentially broadens the customer’s exposure and access to the retailer’s offerings (Montoya-Weiss, Glenn & Dhruv, 2003). It also gives customers greater control when they can pick the channel that fits their needs, given their situation (Hui & Roy, 2002; Meuter et al., 2005). The context-dependent nature of value indicates that individual customers may value the same thing differently at different times in different ways; the offering of multiple channels will increase the chance that customers find a suitable channel to fulfil their (temporary) needs. For multichannel retailers, it is a strategic decision to stimulate online and/or offline purchasing. For them, the financial costs need to be set off against its financial gains. Understanding how each channel provides value to customers is just a first step to optimize the channel mix. The challenge is to leverage and coordinate the strengths of online and offline channels to increase the overall value for customers (Montoya-Weiss et al., 2003). The creation of value to customers needs to be contrasted against its financial consequences. More sophisticated financial models may incorporate the acquisition and retention costs/revenues of individual customers using channels (cf. Bolton et al., 2004; Verhoef et al., 2005). Despite the high acquisition costs (i.e., costs of attracting a customer), the online channel may be preferred, as it has been found that it attracts more loyal customers (Shankar, Urban & Sultan, 2002; Verhoef et al., 2005).
Limitations and Future Research
As with any study, there are limitations to this research. First, in the current investigation, attitude was measured by three components (relative advantage, compatibility and complexity). As previous researchers contend with respect to multichannel consumer behaviour and channel-switching behaviour by using TPB, attitude can be measured by other dimensions, such as the hedonic and utilitarian behavioural belief scale (Pookulangara & Natesan, 2010; Voss, Spangenberg & Grohmann, 2003). As such, future research should incorporate hedonic and utilitarian constructs into a broader TPB model on analyzing the impact of attitude on channel-switching intention.
Second, in this research, Malaysian consumers’ channel-switching behaviour was evaluated only in two channels (Internet and brick-and-mortar stores channels). Technology is in constant progress; new devices, such as tablets, are available to browse for products and mobile apps to shop online are becoming popular among consumers; as technology is progressing and mobile online sales are increasing, consumers’ shopping habits are also changing. Younger generations have great technology assimilation and are growing with an online culture; therefore, understanding mobile commerce and its potential is fundamental. Catalogue is the other suggested channel that can be examined. Therefore, it is recommended that future researchers study Malaysian consumers’ channel-switching behaviour by examining each of the individual channels (e.g., catalogue, mobile phone, tablet and brick-and-mortar stores). In addition, future studies are suggested to examine less pair similar channels (e.g., catalogue and brick-and-mortar stores; brick-and-mortar stores and Internet by applying new online shopping devices, such as mobile phone as well as tablets).
Third, in this study, the questionnaire was collected from Malaysian consumers in two regions of the country (i.e., Klang Valley and Penang), and this could lead to differences in the parameters under study (Safiek & Hayatul, 2009). Besides, as one of the main channels in this study is the Internet and according to Sulaiman, Ng and Mohezar (2008), students are more familiar with the Internet and computer usage compared to other groups. Thus, it is suggested that future researchers examine Malaysian consumers’ channel-switching behaviour by using students as the respondents for each region separately.
Fourth, to measure channel-switching search and purchase behaviour, respondents were asked to recall how many times during the last 6 months they had changed channel while searching for a product or service or purchased goods or services from Internet to brick-and-mortar stores channels and vice versa. These measures are subject to recall errors and do not require subjects to list actual purchases through these channels or products/services that they searched for. Additionally, the scaling for these variables ranged from ‘never’ in the last 6 months to ‘more than 15 times’ in the last 6 months which might have caused a ceiling effect given that consumers might have searched for a product/service more than 15 times in a day. Future researchers in this area might try to collect a time component to these measures by asking respondents to indicate how much time, on average, they have spent searching for products within a specific channel and then changed channel in the last 6 months (a similar question could be asked for purchasing behaviours). These measures also did not measure search or purchasing effort, which should be included in future research endeavours.
Finally, in an attempt to understand consumers’ channel-switching behaviour at a general level, consumers were not directed to respond in relation to a specific product. Consumers are often presented with a product decision prior to channel selection/switching, which presents a limitation to the work. Although Mathwick, Malhotra and Rigdon (2002) indicated that many consumers select a retail channel first, which eventually results in a shopping decision, research focusing on the product/channel decision-making process would significantly enhance the understanding of this critical issue. It can be noted that the nature of the product could determine channel selection as well as channel-switching behaviour. Products that consumers feel need to be seen, touched, tasted, tried on, etc., prior to purchase are more likely to be purchased through different channels than products that are electronically conveyable or have limited distribution. As such, future research should explore consumers’ channel-switching behaviour as it relates to specific purchases and products.
Footnotes
Appendix
Measurement Scales
| Construct | Scale |
| Relative Advantage | It is important to me to choose a channel that has more advantages than disadvantages. |
| It is important to me to choose a channel that will offer me any new benefits. | |
| I choose a channel that makes it easier for me to do my shopping activities. | |
| I choose a channel that allows me to manage my shopping activities more efficiently. | |
| Compatibility | I use a channel that is compatible with my lifestyle. |
| I use a channel that fits well with my lifestyle. | |
| I use a channel that is compatible with the way I like to do shopping activities. | |
| Complexity | I use a channel that is difficult to learn. |
| I use a channel that is easy to operate. | |
| I use a channel that is frustrating to learn. | |
| Normative Belief | My friends would think that I should change from channel A1,2 to channel B1,2. |
| My family would think that I should change from channel A1,2 to channel B1,2. | |
| My co-workers would think that I should change from channel A1,2 to channel B1,2. | |
| My friends approve of my changing from channel A1,2 to channel B1,2. | |
| My family approves of my changing from channel A1,2 to channel B1,2. | |
| My co-workers approves of my changing from channel A1,2 to channel B1,2. | |
| Information | Less availability of product information through online/store leads to change channel from channel A1,2 to channel B1,2. |
| I change channel A1,2 to channel B1,2 because searching information through online/store wastes my time. | |
| Lack of great deal of online/store information will cause to change channel from channel A1,2 to channel B1,2. | |
| High difficulty in terms of availability of online/store information leads to change channel from channel A1,2 to channel B1,2. | |
| Price | The highest product price through online/store leads to change channel from channel A1,2 to channel B1,2. |
| Price comparison will lead to change channel from channel A1,2 to channel B1,2. | |
| Difficulty in terms of finding the lowest price through online/store causes to change channel from channel A1,2 to channel B1,2. | |
| Self-efficacy | I know enough to change from channel A1,2 to channel B1,2 on my own. |
| If I wanted to, I could easily change from channel A1,2 to channel B1,2 on my own. | |
| I would feel self-confident to change from channel A1,2 to channel B1,2 on my own. | |
| Attitude | I think changing from channel A1,2 to channel B1,2 is good. |
| Changing from channel A1,2 to channel B1,2 is wise. | |
| Using channel B1,2 instead of channel A1,2 is good. | |
| Subjective Norms | People who influence my behaviour think that I should change from channel A1,2 to channel B1,2. |
| People who are important to me think that I should change from channel A1,2 to channel B1,2. | |
| People whose opinions I value think that I should change from channel A1,2 to channel B1,2. | |
| People who are close to me think that I should change from channel A1,2 to channel B1,2. | |
| People who influence my decisions think that I should change from channel A1,2 to channel B1,2. | |
| Perceived Behavioural Control | I would be able to change from channel A1,2 to channel B1,2. |
| I have the resources, knowledge and ability to change from channel A1,2 to channel B1,2. | |
| Changing channel A1,2 to channel B1,2 is entirely within my control. | |
| Channel-switching Intention | Intend to change to channel B1,2 from channel A1,2 while shopping. |
| Plan to change to channel B1,2 from channel A1,2 for all my shopping. | |
| Given the chance, I predict I will change to channel B1,2 from channel A1,2 in the future. | |
| Where channel A1: Internet, channel A2: brick-and-mortar stores, channel B1: brick-and-mortar stores and B2: Internet. | |
Acknowledgements
The authors are grateful to the anonymous referees of the journal for their extremely useful suggestions to improve the quality of the article. The second author would also like to express his gratitude to Universiti Teknologi Malaysia (UTM), which provided him the opportunity to do PhD and broaden his academic and business horizons.
