Repurchase intention

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Understanding Repurchase Intention: Key Factors and Influences

Introduction to Repurchase Intention

Repurchase intention refers to a customer's likelihood of buying a product or service again from the same company. This concept is crucial for businesses as it directly impacts customer loyalty and long-term profitability. Various studies have explored the factors influencing repurchase intention across different sectors, including online shopping, service industries, and social commerce.

Key Determinants of Repurchase Intention

Service Quality, Equity, and Value

In the service sector, repurchase intention is significantly influenced by several factors, including service quality, equity, and perceived value. A structural equation model applied to car insurance and superannuation services revealed that while perceived quality does not directly affect customer satisfaction, it does so indirectly through customer equity and value perceptions. Additionally, brand preference acts as an intervening factor between customer satisfaction and repurchase intention, with perceived value being the main driver of brand preference.

Psychological Factors in the Sharing Economy

For platforms like Airbnb, psychological factors such as attitude, subjective norms, and perceived value play a crucial role in repurchase intention. Unique experience expectations, familiarity, and electronic word of mouth also significantly influence travelers' decisions to reuse Airbnb. Interestingly, perceived behavioral control does not have a significant impact, highlighting the importance of psychological and social factors over control perceptions.

Online Shopping Experience and Habits

In the context of online shopping, customer satisfaction and adjusted expectations are vital drivers of repurchase intention. Online shopping habits moderate the relationship between customer satisfaction and repurchase intention, while online shopping experience is a key driver for customer satisfaction. Adjusted expectations mediate the impact on repurchase intention, emphasizing the importance of managing customer expectations and experiences.

Value and Transaction Costs

From a relational exchange perspective, both perceived value and transaction costs significantly impact repurchase intention in online shopping. Information searching cost, moral hazard cost, and specific asset investment are critical components of transaction costs. Among these, information searching cost has the most significant influence, suggesting that reducing this cost can enhance repurchase intentions.

Utilitarian and Hedonic Factors

An integrated model examining online repurchase intention found that both utilitarian factors (perceived ease of use and usefulness) and hedonic factors (perceived enjoyment) are significant. However, in the post-purchase stage, utilitarian factors play a more crucial role than hedonic factors in predicting repurchase intention. This indicates that practical benefits are more influential than enjoyment in driving repeat purchases.

Social Commerce Dynamics

In social commerce, factors such as swift guanxi (interpersonal relationships), alternative attraction, perceived value, and customer satisfaction are essential. These factors interact to influence repurchase intention, providing a comprehensive understanding of the mechanisms at play in social commerce environments.

Gamification and Reputation

Gamification and reputation are also key determinants of repurchase intention in e-commerce. Trust, influenced by reputation, significantly impacts the intention to use e-commerce platforms and repurchase intention. Gamified elements enhance user engagement, which in turn positively affects repurchase intentions.

Conclusion

Repurchase intention is a multifaceted concept influenced by various factors across different contexts. Service quality, perceived value, psychological factors, online shopping habits, transaction costs, utilitarian and hedonic benefits, social commerce dynamics, and gamification all play significant roles. Understanding these factors can help businesses develop strategies to enhance customer loyalty and drive repeat purchases.