The Effect of Extrinsic Benefits of Online Shopping on Customer Behavioural Intentions in Tanzania: Moderating Role of Customer Satisfaction

Abstract

The trend of individuals using the internet has been increasing over the years leading to the booming online shopping that has attracted academic researchers to investigate the motives or benefits of online shopping. This study aimed to elucidate the influence of extrinsic benefits (variety, price, and ease of use) on online shopping behavioural intentions, with customer satisfaction as a mediating role. A self-administered questionnaire was used to capture data from online shoppers in Tanzania. The data were analysed using Smart PLS 3 structural equation modelling. The results indicate that the extrinsic benefits significantly affect online customer behavioural intentions. Satisfaction fully mediates the effects of two dimensions of extrinsic benefits aspects (variety and
ease of use) on behavioural intentions. Extrinsic benefits also partially mediate the effects of price on behavioural intentions. The results provide insights into how online vendors can use strategic and tactical use of extrinsic benefits in leveraging their short- and long-term marketing strategies. The study affirms the utility and integration of the extrinsic benefits and the Uses and Gratifications
Theory in the context of online shopping.

Keywords: Extrinsic benefits, online shopping, satisfaction, behavioural intentions