E-service quality for luxury products : identifying the relevant dimensions using a mixed-methods research approach

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Thesis

To obtain the academic degree

Master of Science in Business Administration – Marketing Track

Spring Semester 2015

E-Service Quality for Luxury Products:

Identifying the Relevant Dimensions Using a

Mixed-Methods Research Approach

Name: Johannes Frederik Schuster Student Number: 10825460

Address: Zeisigweg 3, D-51427 Bergisch Gladbach, Germany Submitted to: Dr. Frederik Situmeang

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Statement of Originality

This document is written by Student Johannes Frederik Schuster who declares to take full responsibility for the contents of this document.

I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it.

The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

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Acknowledgement

I would like to express my gratitude to several individuals for their guidance, engagement, and help during the learning process of this Master’s Thesis. To begin with, I would like to thank my supervisor Dr. Frederik Situmeang for the useful comments, remarks, and support he provided throughout the whole thesis development process. Furthermore, I would like to thank the two industry experts who have shared willingly their precious time and fruitful insights into the luxury good industry. I would like to acknowledge my friends for their support in writing my Master’s Thesis in various forms, be it value feedback, encouragement, or just to have a beer in testing times. Finally, I thank my parents for their constant support and love throughout all my University studies, empowering my diverse education in Germany, England, Hong Kong, and the Netherlands. Without you, none of this would have been possible.

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Abstract

Academic literature has identified a paradox when, on the one hand, aiming to maintain a luxury brand’s perception of exclusivity and limited supply, while, on the other hand, choosing the Internet a mass distributing channel. Nevertheless, business practice demonstrates that luxury brands can successfully implement e-retail as distribution channel. In this regard, the construct of e-service quality is an important key component of an online retail strategy, which, however, has yet to be investigated in the context of luxury products. Drawing from a two-staged research approach that mixes qualitative and quantitative approaches across the stages of the research process, this paper identifies relevant e-service quality dimensions for luxury products. Further, this paper demonstrates the relationship between e-service quality, perceived value, customer satisfaction, behavioral intentions, and attitude towards the brand in a luxury product setting. This work’s findings should be valuable to practitioners and marketing academics alike.

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List of Figures

Figure 1: Research Framework ... 38

List of Tables

Table 1: Selected Studies on E-Service Quality Scale Development ... 5

Table 2: Comparison of E-Service Quality Dimensions ... 24

Table 3: Research Hypotheses ... 39

Table 4: Descriptive Statistics ... 45

Table 5: Correlation Matrix ... 47

Table 6: Descriptive Statistics Hypothesis 3 (b) ... 49

Table 7: Correlation “Incentive” – “Perceived Value” ... 49

Table 8: Correlations “E-Service Quality” and “Perceived Value” ... 50

Table 9: Correlation “Prior Brand Image” and “Perceived Value” ... 51

Table 10: Motivations for Buying Luxury Products Online ... 53

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1 Introduction

Since its emergence in the 1990s, the Internet has profoundly re-configured the underlying industry practices of both retailing and distribution management (Doherty & Ellis-Chadwick, 2006). In 2014, the business-to-customer e-commerce revenue worldwide amounted to $1.316 billion US-Dollar and is expected to increase to $2.489 billion US-Dollar until 2018 (Statista GmbH, 2014, p. 1). Alongside, the global market for luxury brands has witnessed tremendous growth over the last two decades as well. However, this industry sector adapted only slowly to digital advances and possibilities (Okonkwo, 2009). This slow embracement originates from luxury’s nature that must be rather considered as a distinct form of culture and philosophy; its intricacies, outputs, and functions are essentially different from other types of goods (Berry, 1994; Okonkwo, 2009). This also becomes apparent when considering luxury’s function, which is rooted in “the social classes of past civilizations and societies when royals, nobles, and aristocrats used ostentatious consumption to stamp their superiority and maintain their distance from the lesser privileged” (Okonkwo, 2009, p. 303 in accordance to: Okonkwo, 2007). Even though these societal structures have more or less vanished, luxury’s symbolic function on both individual and collective level and the function of social stratification in all cultures, regardless of their political or economic situation, basically remain unchanged.

Academic literature identified a paradox when, on the one hand, aiming to maintain a brand’s perception of exclusivity and limited supply, while, on the other hand, choosing the Internet as a mass distributing channel. There seems to be an inherent conflict between the world of luxury and its emphasis on craftsmanship and careful manufacturing with e-commerce’s click-to-buy culture; a threat of ‘commoditization’ might arise for this product category, whose image has historically been based on highly selective distribution and information channels (Riley & Lacroix, 2003). Moreover, the characteristic of the Internet as a medium to the mass customer base contradicts with the niche segments that luxury companies

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intend to target (Okonkwo, 2009). Considering the Internet a distribution channel for the masses (Roux & Floch, 1996), adopting this medium might dilute the exclusive image of the luxury brand. Examples for this standpoint are a high product variety associated with low switching costs, or accessibility and availability of products independent from time and location (Okonkwo, 2009 in accordance to: Chaffey, Ellis-Chadwick, Johnston, & Mayer, 2000; Harris & Dennis, 2002). The absence of physical contact with both the goods as well as the sales personnel can also be considered as opposing to luxury goods’ sensory nature: touching, feeling, and smelling the product alongside the visual experience are considered to play an important role in the process of selling luxury goods. Furthermore, customer service in a luxury boutique allows gaining insights into the brand lifestyle and significantly shapes the consumption experience (Fionda & Moore, 2009 in accordance to: Danziger, 2005; Chevalier & Mazzalovo, 2008; Okonkwo, 2007). Accordingly, the luxury sector has shown only a low commitment towards integrating e-commerce in their retail strategy until recently. Exemplarily, international luxury brands like Prada or Versace even refused to employ a corporate website until 2007 and 2005; notable luxury brands such as Chanel still refuse to integrate e-commerce on their homepages (Okonkwo, 2009).

The described nature of luxury indicates challenges when integrating luxury brands within a digital environment. However, business practice demonstrates that luxury brands can both be successfully positioned online and implement e-retail as effective distribution channel and innovative branding tool. Having overcome some of their incipient reluctances, many luxury companies are now more comfortable selling and marketing their products on their own website but also via selected luxury e-retailer partners. Examples are the online fashion retailer Farfetch with $300 million US-Dollar sales globally in 2014 (The Financial Times, 2015), Giorgio Armani’s reconstruction of its Milan flagship store in the online environment (Okonkwo, 2009), or Cartier’s online magazine “RougeCartier” with inspirations, news, and short movie series (Cartier International SNC, 2015). With changes in buying behavior

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increasing the Internet’s significance as information source and shopping tool, luxury brands might benefit by expanding their sales operations to this channel. A study from McKinsey & Company (2014) estimates that e-commerce represents approximately four percent of total luxury sales currently. However, and more importantly, the study expects the online revenue to double and reach an approximate volume of $23 billion US-Dollar within the next five years (McKinsey & Company, 2014). Accordingly, a gap between current business practices and prevalent luxury brand literature can be identified (Okonkwo, 2009 in accordance to: Okonkow, 2007). On that account, Porter (2001) asserts that the question is not whether to launch an online presence for luxury products, but rather how to translate this communication and retail channel into economic value.

The corresponding management discipline, therefore, requires fundamental understanding of the luxury concept before online business practices are adopted. In this regard, the construct of e-service quality can be considered as important key component of an online retail strategy. Service quality in online environments has become recognized as an important factor in determining the success or failure of electronic commerce (Cox & Dale, 2001; Yang & Jun, 2002), which appears to be especially important when taking the previously mentioned distinctive characteristics of luxury brands and its slow embracement in the digital revolution into consideration (Okonkwo, 2009). However, “the conceptualization and measurement of e-service quality are still at an early phase of development” (Ladhari, 2010, p. 464 in accordance to: Cristobal, Flavian & Guinaliu, 2007; Fassnacht and Koese, 2006) and research on e-service quality is still concerned as limited (Parasuraman, Zeithaml, & Malhotra, 2005).

The identification of e-service quality dimensions received a lot of attention in marketing academics. Researchers’ starting point was a multiple-item scale called SERVQUAL that has been developed by Parasuraman, Berry, and Zeithaml (1991) to measure traditional offline services. However, due to differences between online and offline service setting,

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challenges in measuring e-service quality emerged and thus lead to a discussion in academic literature (Li, Tan, & Xie, 2002). Accordingly, academicians and practitioners have developed various scales to measure e-service quality; however, no commonly agreed measurement scale exists (Barnes & Vidgen, 2002; Bauer, Falk, & Hammerschmidt, 2006; Ding, Hu, & Sheng, 2011; Fassnacht & Koese, 2006; Parasuraman, Zeithaml, & Malhotra, 2005; Santos, 2003). Table 1 provides an overview of selected e-service quality articles that have been published since 2000. Hereby, only studies that focused on developing a tool for measuring e-service quality are included. The selected e-service models consist of three to twelve dimensions. Whereas Fassnacht and Koese (2006) developed a model comprising of three dimensions (environment quality, delivery quality, and outcome quality), Zeithaml, Parasuraman, and Malhotra (2000) present 12 dimensions, which constitute the E-SQ model (access, ease of navigation, flexibility, reliability, price knowledge, aesthetics, efficiency, personalization, privacy, responsiveness, and assurance).

Among the various investigated scales, E-S-QUAL developed by Parasuraman, Zeithaml, and Malhotra (2005) is a widely accepted measurement scale that contains four dimensions with 22 items. The scale’s effectiveness has been validated by academic research (Boshoff, 2007; Kurt & Atrek, 2012). For instance, Boshoff (2007) validated the E-S-QUAL scale as reliable instrument by applying it on an Internet marketing firm. However, e-service quality literature also directed several criticisms towards the QUAL scale. As the E-S-QUAL assumes goal-directed online shopping behavior, Bauer, Falk, and Hammerschmidt (2006) outline that hedonic elements of service quality are not involved in the scale. The authors assume that comparable to the physical environment in offline transaction the interface of a website provides extrinsic cues in virtual service encounters. These are believed to trigger emotional responses that are crucial determinants of the e-service quality perception. Especially when considering e-service quality for luxury product e-commerce, hedonic aspects might play a crucial role for customer evaluations.

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Table 1: Selected Studies on E-Service Quality Scale Development

As Table 1 shows, research on e-service quality and its dimensions are still in an early phase of development. Correspondingly, research has yet to investigate the role of e-service quality and its most important determinants in the luxury goods industry. This seems especially important in consideration of recent adoptions of luxury brands towards the digital revolution and the above-described paradox between online sales and luxury goods’ characteristics. On that account, this work explores the concept of e-service quality for luxury products using a two-staged research approach consisting of a qualitative, discovery oriented, theories-in-use approach and a quantitative research phase. Thereby, this thesis tests multiple dimensions of e-service quality provided by academic research in a luxury product setting aiming to yield fruitful information for both marketing academics and practitioners. The e-service quality dimensions provided by the E-S-QUAL scale, the dimensions proposed by Santos (2003), and

Authors Scale Dimensions

Barnes and Vidgen (2002)

WebQual Usability, design, information, trust, and empathy Bauer, Falk, and

Hammerschmidt (2006)

eTransQual Functionality/design, reliability, process, responsiveness, and enjoyment

Ding, Hu, and Sheng (2011)

e-SELFQUAL Perceived control, service convenience, customer service, and service fulfillment

Fassnacht and Koese (2006)

Environment quality, service delivery quality, and service product

Parasuraman, Zeithaml, and Malhotra (2005)

E-S-QUAL / E- RecS-QUAL

Efficiency, system availability, fulfillment, and privacy

Santos (2003) Ease of use, appearance, linkage, structure and layout, content reliability, efficiency, support, communication, security, and incentive

Szymanski and Hise (2000)

Online convenience, merchandising (product offerings and product information), site design, and financial security

Wolfinbarger and Gilly (2003)

eTailQ Website design, reliability / fulfillment, privacy / security, and customer service

Yoo and Donthu (2001) SITE-QUAL Ease of use, aesthetic design, processing speed, and security

Zeithaml, Parasuraman, and Malhotra (2000)

E-SQ Access, ease of navigation, flexibility, reliability, price knowledge, aesthetics, efficiency, personalization, privacy, responsiveness, and assurance

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the hedonic dimension provided by Bauer, Falk, and Hammerschmidt (2006) are included in this study.

1.1 Research Objective

In light of the preceding discussion, the objective of this Master’s thesis is to contribute to the marketing literature and practice in a number of ways. Due to the controversial relationship of luxury brands and e-commerce that results from luxury products’ distinctive characteristics and its slow integration in the digital environment, e-service quality might be an important factor determining the success or failure of online sales in the luxury product setting. Accordingly, this study explores important determinants of e-service quality in the luxury brand setting and resulting customer satisfaction, loyalty, positive word-of-mouth, and consumers’ attributes towards the brand. Based on the literature review, the relevance of pre-selected e-service quality dimensions will be determined in in-depth interviews with industry experts. Subsequently, these dimensions will be tested and quantitatively evaluated. On that account, this Master’s thesis contributes to marketing practice by addressing the identified research gap and deriving practical strategic implications for luxury brand companies. Accordingly, the focus of this work is to answers the following research questions:

(1) What are the most important determinants of e-service quality in the luxury segment? (2) What is their respective influence on customer satisfaction, loyalty, positive

word-of-mouth, and attitude towards the brand?

(3) What are the resulting implications for the luxury industry?

1.2 Course of Investigation

The structural outline of this paper is built in accordance to the following logic: To begin with, a literature review provides an overview of luxury brands and their corresponding multifarious characteristics. Subsequently, e-service quality and its determinants are investigated. In this process, different e-service quality models are presented. The literature review part concludes

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with a list of e-service quality determinants that are tested and examined in the consecutive parts of this work. The two following sections describe this work’s across-stage mixed-model research design, which combines qualitative and quantitative methods across different stages of research. First, a qualitative phase of research to identify the determinants of e-service quality is described. Drawing insights from the expert interviews and extant literature, the first research stage presents a research framework and the corresponding hypotheses. In the next step, a quantitative phase in form of a survey offers a description of online luxury shopper’ attitudes towards the previously selected e-service quality dimensions and their respective outcomes. Subsequently, implications, results, and inferences for luxury companies are presented, which are based on both academic literature and empirical research findings. The last part of this work encompasses a final conclusion and discusses limitations of this paper. In addition, further research directions are reconsidered.

2 Literature Review

The following section provides a detailed overview of luxury and e-service quality. In the first step, the concept of luxury and its distinctive characteristics is introduced. Afterwards, the relationship between luxury products and e-commerce is highlighted. The last part of this chapter presents the prevalent e-service quality literature. This section aims to provide a theoretical understanding for the research questions under investigation.

2.1 Concept of Luxury Brands

Traditionally, most of the literature on luxury goods literature originates from multiple academic disciplines such as sociology, history or economics (Tynan, McKechnie, & Chhuon, 2010 in accordance to: Berry, 1994; Bourdieu, 1984; Leibenstein, 1950). It is, therefore, difficult to explicitly define the concept of luxury. Its notion can be considered as a sociological phenomenon that is, among others, also related to factors such as the individuals morals of a society or the political and economical development of a country. Moreover, there is a lack of

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consensus in academic literature on what composes a luxury brand, as people’s idea about luxury is mainly comprised of perceptions and necessities, which are of subjective nature (Gosh & Varshney, 2013). In general, conceptualizations of luxury are typically approximated from either an object-oriented perspective or from a behavior-oriented perspective (Fionda & Moore, 2009). From the object-oriented perspective, the definitions of luxury goods and brands attempt to derive universally valid core characteristics that luxury goods possess (Fionda & Moore, 2009 in accordance to: Jackson, 2001; Kapferer, 2008; Nueno & Quelch, 1998). Nueno and Quelch (1998), for instance, define luxury brands as “those whose ratio of functionality to price is low, while the ratio of intangible and situational utility to price is high” (p. 61). In contrast, scholars that seek to explain the concept of luxury from a behavior-perspective refer to the phenomenon of social stratification and the symbolic function of luxury goods on both individual and collective level. Thus, these scholars identify luxury “in terms of its psychological value, its function as status symbol, and as a highly involved consumption experience that is strongly congruent to a person’s self-concept” (Fionda & Moore, 2009 in accordance to: Chadha & Husband, 2006; Danziger, 2005; Nia & Zaichkowsky, 2000; Vickers & Renand, 2003; Vigneron & Johnson, 1999). Many academic scholars that discuss the concept of luxury refer to Dubois, Laurent and Czellar’s (2001) studies in which customers’ attitudes towards the concept of luxury are analyzed. In order for an object to be considered as a luxury good, the authors provide six determinants that allow its categorization. These determinants are elaborated in the subsequent part of this chapter.

2.1.1 Excellent Quality

The first facet to define a luxury good is the object’s excellent quality. Different to comparable objects, excellent quality is expected to be present across all products in the line and all aspects of the luxury product, such as ingredients, manufactured components, and the manufacturing process (i.e. “a heritage of craftsmanship”, Nueno & Quelch, 1998, p. 62). Thus, luxury goods are manufactured with an outstanding eye for detail aiming to achieve total perfection. On that

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account, the corresponding service is also expected to meet the highest standards (Dubois, Laurent, & Czellar, 2001).

2.1.2 Very High Price

The second determinant of a luxury product is its comparatively high price. This characteristic can be substantiated with the behavior-oriented perspective of luxury, as it incorporates the symbolic function a luxury product encompasses. In other words, the higher the price of a good, the greater is the associated wealth of the customer purchasing it. This perception either results from the absolute value of the price or, more commonly, from comparing the price with non-luxury alternatives (Dubois, Laurent, & Czellar, 2001; Vigneron & Johnson, 2004). Moreover, the characteristic of a very high price is also related to the previously mentioned determinant of high quality; a high price is associated with high quality in consumers’ minds and thus often used to justify expensive purchases (Bagwell & Bernheim, 1996).

2.1.3 Scarcity and Uniqueness

The third differentiating determinant of luxury is scarcity and uniqueness. This characteristic is closely related to the preceding determinants of excellent quality and high prices. The scarcity can, for instance, originate from a limited resource such as diamonds or from a small number of highly skilled experts that manufacture the product. In addition, the scarcity can also result from strategic decisions, i.e. when the producer restricts its production and sales volume. Academic literature unveils that the characteristic of scarcity of products results in increased consumer preferences for a brand (Vigneron & Johnson, 2004 in accordance to: Lynn, 1991). Accordingly, consumer behavior literature asserts that scarcity and uniqueness enhances consumers’ self image as well as social image (Vigneron & Johnson, 2004).

2.1.4 Aesthetics and Polysensuality

The fourth determinant of luxury proposed by Dubois, Laurent, and Czellar (2001) is aesthetics and polysensuality. Aesthetics describe consumers’ attributions of fashionable, elegant, or tasteful characteristics towards luxury brands. “At the extreme, luxury products become pieces

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of art, which have to be recognized as such” (Dubois, Laurent, & Czellar, 2001, pp. 12-13). Furthermore, aesthetics also refers to the environment the products are presented in. Polysensuality is related to product attributes such as smell, taste, or touch that a luxury product contains. However, polysensuality plays also an important role in consumers’ purchase decision at the point of sale, where customers are able to experience the luxury product’s exclusivity with all their senses (Peck & Wiggins, 2006).

2.1.5 Ancestral Heritage and Personal History

The fifth determinant associated with luxury is the brand’s ancestral heritage and personal history. Factors such as a long company history, manufacturing tradition, and a heritage in product design allow the brand to tell an exceptional story and thus contribute to a unique market positioning (Dubois, Laurent, & Czellar, 2001; Nueno & Quelch, 1998). Correspondingly, Dubois, Laurent and Czellar (2001) assert that consumers assume luxury items to be “immortal symbols of human creativity and intelligence” (p. 15).

2.1.6 Superfluousness

Finally, the last determinant of luxury is superfluousness, which implies some degree of perceived non-necessity or uselessness of luxury products. In other words, luxury products or services derive their value mostly from aspects different to their functional nature (Dubois, Laurent, & Czellar, 2001). Product categories such as perfume or jewelry represent perspicuous examples to explain this determinant of luxury.

2.2 Luxury Brands and E-Commerce

The preceding part of this work outlines the determinants of luxury goods and draws attention to the crucial attributes of luxury brands. Before investigating e-service quality literature in detail, the subsequent part describes the relationship between luxury goods and e-commerce.

In general, the online environment generally differs from the traditional retail context due to the absence of face-to-face contact. In an online environment, customers interact with a

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technical interface (Fassnacht & Koese, 2006). However, especially in a luxury product setting,

customer service and the interaction with the service personnel play an important role in shaping the consumption experience and consequently allow the customer to gain insights into the brand lifestyle (Fionda & Moore, 2009 in accordance to: Danziger, 2005; Chevalier & Mazzalovo, 2008; Okonkwo, 2007). Fassnacht and Koese (2006) further distinguish the difference between the online and offline retail context based on the co-production aspect of service quality: In an online environment, customers’ role in co-producing the delivered service is a more prominent one than in a traditional retail setting. However, consumers using an online channel to purchase products benefit from convenience and efficiency (Santos, 2003). Customers not only save time and effort in comparing prices, but also benefit from online sale when they have no direct access to a physical store. Regarding this aspect, companies that employ e-commerce as distribution channel might increase their revenues, as they are now able to reach a larger target audience. However, transferred to a luxury product setting, e-commerce represents a threat of ‘commoditization’, as luxury brands usually receive their strong brand image due to careful selection of both information and distribution channels (Okonkwo, 2009; Riley & Lacroix, 2003). Also, the ambience plays a crucial role in the context of luxury stores. Luxury stores present ‘shopping cathedrals’ for customers that employ both complex architecture and store design to convey the feeling of luxury and thus shape consumers’ shopping experience at the point of sale (Moore, Fernie, & Burt, 2000). Moreover, the physical stores play an important role in a luxury brand’s marketing communication process and support a company’s wholesale business. Accordingly, companies typically invest significantly into these brand stores (Dubois, Laurent, & Czellar, 2001; Moore, Fernie, & Burt, 2000; Peck & Wiggins, 2006). Another distinctive characteristic for e-commerce environments in general is the concern that users have about privacy, safety, and confidentiality (Ladhari, 2010). Respectively, Liu, Burns, and Hou (2013) conducted a study comparing differences between offline and online channels in the luxury product segment and conclude that approximately one

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quarter of in-store shoppers “are not confortable with purchasing expensive items on the Internet” (p. 890). Given the differences that exist between online and offline channels, Kapferer (2000) perceives e-commerce as both opportunity and threat for luxury brands. Contrary to the academic argumentation, luxury brands have successfully implemented e-commerce into their business strategy. Thus, a gap between this business practice and academic literature can be identified (Okonkwo, 2009 in accordance to: Okonkow, 2007) that serves as foundation for the underlying research question of this work.

2.3 E-Service and E-Service Quality

Both academic scholars and practitioners have increasingly recognized the concept of e-service as one of the key determinants to operate successfully in the electronic commerce sector (Rust & Lemon, 2001; Santos, 2003). Rust and Lemon (2001) define e-service as the role of service in the Internet. Thus, when considering commerce and its multifarious characteristics, e-service quality seems to be an important construct for companies to differentiate themselves and translate the online retail channel into economic value, especially for luxury brands. However, research on e-service and e-service quality is still in its infancy and no commonly agreed definition exists. On that account, the notion e-service quality will be discussed in the subsequent part of this work.

2.3.1 Traditional Service Quality

For the purpose of this work, traditional service quality refers to the quality of all non-Internet-based experiences and interactions that occur between customers and companies. A large body of academic literature has investigated the concept of service quality during the past few decades (for instance Gronroos, 1978; Parasuraman, Zeithaml, & Berry, 1985). Reviewing the existing service literature suggests three common underlying themes. To begin with, service quality is more difficult to evaluate then goods quality for customers. Moreover, the service quality perception results from a comparison of customers’ prior expectations with the actual delivered service performance. Third, the quality evaluations are not only made based on the

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outcome of a service; rather, the evaluation involves the whole process of service delivery (Parasuraman, Zeithaml, & Berry, 1985). Based on these characteristics, research has defined service quality as a comparison of customers’ expectations and feelings with a company’s actual service performance (Parasuraman, Zeithaml, & Malhotra, 2005). Building on existing literature, Parasuraman, Berry, and Zeithaml (1991) developed a measurement instrument named SERVQUAL that assesses a company’s service quality. Among the measurement scales of service quality, the SERVQUAL model has become increasingly popular among researchers. The scale measures five dimensions of service quality, namely reliability, responsiveness, assurance, empathy, and tangibles (Parasuraman, Berry, & Zeithaml, 1991; Parasuraman, Zeithaml, & Malhotra, 2005).

2.3.2 E-Service Quality

The notion of service quality in traditional offline settings has been prevalent in academic literature for many decades; however, it has only recently been applied to the e-commence setting. Whereas some researchers focus their research on technical quality aspects of the website itself, others include interaction with customers as well as post-website services such as order fulfillment and returns (Zeithaml, Parasuraman, & Malhotra, 2002). Zeithaml, Parasuraman, and Malhotra (2000) provided the first formal definition for e-service quality and describe it as the “extent to which a website facilitates efficient and effective shopping, purchasing, and delivery of products and services” (Kurt & Atrek, 2012, p. 623). Santos (2003) defined e-service quality as “the consumers’ overall evaluation and judgment of the excellence and quality of e-service offerings in the virtual marketplace” (p. 235). Moreover, reviewing the relevant e-service quality literature also demonstrates that the existing research on the subject parallels those in the traditional service quality context (Hackman, Gundergan, Wang, & Daniel, 2006). Similar to offline service transactions, online shopping can be considered a complex process consisting of various sub-processes, for instance searching for information or navigation. Rather than evaluating each sub-process in detail, consumers are likely to perceive

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the online service and thus the e-service quality as an overall outcome (van Riel, Liljander, & Jurriens, 2001).

Even though face-to-face services differ significantly from e-services (Ding, Hu, & Sheng, 2011), three implications from traditional service quality literature can be employed to further define, conceptualize, and measure e-service quality. To begin with, the perceived quality of a service results from comparing actual service performance with prior expectations. The second implication refers to Parasuraman, Berry, and Zeithaml (1991), who conceptualize traditional offline service quality using a multiple-item scale called SERVQUAL model, as presented above. This model contains the five dimensions reliability, responsiveness, assurance, empathy, and tangibles that can still be applied to e-services in large parts as well. Finally, customer assessment of e-service quality is, similar to traditional services, strongly related to both perceived value and behavioral intentions (Parasuraman, Zeithaml, & Malhotra, 2005).

2.3.3 Research on E-Service Quality Dimensions

For e-commerce academics, the identification of e-service quality dimensions is of major interest. The previously described SERVQUAL dimensions have been widely employed to measure e-commerce system and information system quality in various contexts, such as web-based services, Internet retail, or electronic banking (Lee & Lin, 2005). Accordingly, literature on e-service quality measurement has mostly focused on rewording the SERVQUAL dimensions. However, due to differences between online and offline service settings, challenges in measuring e-service quality emerged and thus lead to a discussion in academic literature (Li, Tan, & Xie, 2002). Parasuraman and Grewal (2000) recommend additional research to investigate whether “the definitions and relative importance of the SERVQUAL dimensions change when customers interact with technology rather than with service personnel” (p. 171). In this regard, researchers propose that SERVQUAL scale items require

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further adjustment before this tool can be used effectively in the online shopping context (van Riel, Liljander, & Jurriens, 2001; Santos, 2003.)

When reviewing existing e-service quality literature, it becomes apparent that a variety of conceptual models to measure e-service quality exist. In the following part, literature streams of recent e-service quality and its respective dimensions are discussed. Table 1 (see Introduction) gives an overview of selected articles that have been published since 2000. Hereby, only studies that focused on developing a tool for measuring e-service quality are included that will be discussed in the following. In addition, three frameworks and their corresponding dimensions are discussed in greater detail to capture different perspectives on e-service quality and provide an overview of different dimensions that research proposes.

The previously introduced SERVQUAL model served as basis for Barnes and Vidgen’s (2002) measurement scale called WebQual. This scale contains the five dimensions usability, design, information, trust, and empathy. Based on customers’ perception that is weighted according to importance, this scale provides an index of a website’s quality. However, this scale is rather suited for transaction-specific assessments of a site, as it does not need a respondent to complete the purchasing process (Barnes & Vidgen, 2002).

Yoo and Donthu (2001) developed the nine-item scale SITE-QUAL that allows measuring quality of retail websites on four dimensions: ease of use, aesthetic design, processing speed, and security (Yoo & Donthu, 2001). To develop the scale, Yoo and Donthu (2001) used a college student convenience sample. However, similar to Barnes and Vidgen’s (2002) WebQual scale, not all aspects of the online purchasing process are captured. Accordingly, the SITE-QUAL scale does not necessarily “contribute to a comprehensive assessment of a site’s service quality” (Parasuraman, Zeithaml, & Malhotra, 2005, p. 4).

Szymanski and Hise (2000) examine dimensions that lead to customer satisfaction in an e-retailing environment. The authors studied the role of online convenience, merchandising (consisting of product offerings and product information), site design, and financial security.

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However, these dimensions are limited in its application for two reasons. First, the study did not include factors such as delivery or after-sales. Second, the focus of the study is on e-satisfaction rather than e-service quality (Szymanski & Hise, 2000).

Ding, Hu, and Sheng (2011) analyze online self-service quality in retailing. The developed scale is named e-SELFQUAL and contains the four dimensions perceived control, service convenience, customer service, and service fulfillment. Ding, Hu, and Sheng (2011) also examine the relationship between self-service quality and both customer satisfaction and loyalty in e-retailing. According to their research, service fulfillment is the most important factor to create customer satisfaction and loyalty. When ranked according to importance, service fulfillment is followed by customer service, perceived cognitive control, and service convenience in terms of its influence on customer satisfaction and loyalty.

Based on literature research and a qualitative study, Fassnacht and Koese (2006) developed a model to measure the quality of electronic services that consist of the three dimensions environment quality, service delivery quality, and service product as well as nine sub-dimensions. The data to test the model were obtained though self-administered online questionnaires. As implications for further research, Fassnacht and Koese (2006) note that the “functional and emotional benefit deserves more research attention in order to further examine the role it plays in evaluating the quality of electronic services” (p. 20). This remark is especially interesting for the topic under investigation when considering the characteristics of luxury products (see Chapter 2.1).

Wolfinbarger and Gilly (2003) develop the so-called eTailQ scale that is based on both online and offline focus groups, a sorting task, and an online survey of a customer panel. The scale, which was developed to measure customer perceptions of e-tailing quality, contains 14 items that are categorized into four factors: Fulfillment / reliability (including accurate display and description of a product as well as delivery of the right product in the promised time frame), website design (including all elements that concern the customer’s experience at the

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website), privacy / security, (security of credit card payments and privacy of customer’s information) and customer service (responsiveness, helpfulness, and interest of personnel to help and respond to customer inquiries quickly) (Wolfinbarger & Gilly, 2003). Even though their three-study approach is comprehensive, Parasuraman, Zeithaml, and Malhotra (2005) assert that the dimensions website design and customer service appear less internally consistent and require further testing.

2.3.4 Dimensions Provided by Santos (2003)

Santos (2003) tests and discusses eleven determinants of e-service quality based on exploratory research involving focus groups. As this approach covers many of the previously described dimensions, this framework will be explained in greater detail in the following. To begin with, the researcher proposes that e-service quality dimensions can be sub-categorized into an incubative and an active dimension. The incubative dimension is defined as “the proper design of a website, how technology is used to provide consumers with easy access, understanding and attractions of a website” (Santos, 2003, p. 238). Furthermore, the incubative dimension includes ease of use, appearance, linkage, structure and layout, and content (Appendix A). Respectively, Santos (2003) defines the active dimension as “the good support, fast speed, and attentive maintenance that a website can provide to its customers” (p. 241). The active dimension comprises reliability, efficiency, support, communication, security, and incentive (Appendix A).

Ease of use. Considering the incubative dimensions of e-service quality (Appendix A),

“ease of use” is presented as the most important dimension (Santos, 2003). This dimension is concerned with the convenience for users to both conduct external search in the Internet (i.e., how easily they can find the website) as well as internal search and navigation within the website itself. Difficulties within internal use and navigation result in complaints and thus decrease perceived value of the e-service. Accordingly, ease of use is highly rated by users (Abels, White, & Hahn, 1999; Meuter, Ostrom, Roundtree, & Bitner, 2000; Santos, 2003).

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Appearance. Appearance refers to colors, graphics, and images, but also to animations

and the appropriate size of a website. Usually, this determinant is the first one observed by customers. Due to subjective determinants, users develop variations of attitudes towards appearance. A color that might be appealing to one user might be considered as unpleasant by another one. Differently, good-quality graphics, animations, images, moving objects, and Java applets are generally understood as positive elements that contribute to the quality of a website. However, providing insufficient or too many images is perceived as undesirable by users. Furthermore, graphics and animations that require the user to scroll around in order to view the entire page should be avoided (Santos, 2003).

Linkage. The linkage dimension focuses on “the number and quality of links that a

website offers” (Santos, 2003, p. 240). Researchers agree that it is not only important to establish proper links and avoid non-working ones, but also emphasize a frequent maintenance of these links (Abels, White, & Hahn, 1999). In general, users perceive links to parent companies or supplementary services as valuable (for example, an airline company provides links to hotels, travel insurances, or car-rental services). However, literature does not provide a number of links an effective website should feature. Concerning internal links of a website, a “home” link is recommended (Santos, 2003).

Structure and Layout. Within the incubative dimensions of e-service quality, structure

and layout is concerned with the organization and presentation of information and content of a website. Predictably, a clear and consistent layout is recommended to increase e-service quality. Furthermore, attributes like a provision of a site map and a clear listed menu increase the user experience. Contrary, a complicated and confusing layout or a highly interlaced website structure decrease the e-service quality (Santos, 2003).

Content. In a website setting, content refers to “the presentation and layout of factual

information and functions” (Santos, 2003, p. 240). According to Santos’ research (2003), websites should provide many detailed information that are presented in a way that is easy to

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understand and to capture. However, website users negatively consider providing too little or too many information.

Reliability. Among the active dimensions of e-service quality, which refer to the good

support, fast speed, and maintenance of a website, reliability is found to be the most important one (Santos, 2003). Reliability refers to a website’s ability to perform its service accurately and consistently. This also includes frequent updates of the website, but also fast replies to customer enquiries and timely as well as accurate processing of online purchasing transactions. Former e-service literature already mentions that e-commerce sites are required to allow customers checking the status of orders and enable feedback (Bettua, 1999). The accuracy of processing and billing of online shopping transaction is an important determinant of the reliability dimension. Similar to offline shopping behavior, respondents expect an accurate order processing, being charged correctly, receiving the products on time, and receiving the product that has been described in the brochure (Santos, 2003).

Efficiency. All aspects of a website that concern speed of downloading, search, and

navigation are unified under the notion of efficiency. According to Santos (2003), respondents jointly agreed on the need of efficient services, involving fast loading of website content, downloading of files, and fast search mechanisms. Even though these processes are partly dependent on the user’s hardware, companies can contribute to e-service quality, for example by reducing the complexity of a website.

Support. Support refers to technical help, user guidelines, and available advice for

users on a website. Providing the customer support with a FAQs section, help pages, or user-friendly guidelines contributes to the e-service quality dimension. Moreover, the possibility to receive personal advice via telephone or e-mail is valued by many users. However, if such services are provided, high responsiveness to customer questions or complaints is required (Santos, 2003).

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Communication. Communication refers to informing customers regularly about

updates or changes in an appropriate and easy-to-understand language. For a high level of e-service quality, many contact channels should be available for users, such as online channels but also traditional ones, such as telephone. Due to the global access of users to websites, operating a website in more than the national language is advantageous, especially when the target group involves not only native speakers (Santos, 2003).

Security. Perceived risk of customers in an online environment has been well

documented in academic research (Davenport & Harris, 2007; Peltiera, Milneb, & Phelpsc, 2009). Accordingly, establishing an infrastructure that creates freedom from danger, risk, private and financial security during browsing and service transaction increases e-service quality. Especially securing privacy information and details from financial transaction such as credit card data need to be secured to both increase consumers confidence and the level of e-service quality (Santos, 2003).

Incentive. The last e-service quality dimension provided by Santos (2003) is incentive.

As the online environment is highly competitive, incentive refers to encouraging the users to browse, test, and use a website. Furthermore, this dimension involves engagement for online purchasing, the participation in market research, and increasing both retention as well as word-of-mouth communication (Santos, 2003).

2.3.5 E-S-QUAL Scale by Parasuraman, Zeithaml, and Malhotra (2000)

In order to measure e-service quality, Zeithaml, Parasuraman, and Malhotra’s (2000) propose eleven e-service quality dimensions to evaluate an online service. These proposed dimensions form the starting point of the E-S-QUAL scale (Parasuraman, Zeithaml, & Malhotra, 2005). This resulting framework has been tested and confirmed by various researchers and must be considered as one of the most comprehensive works on e-service quality so far (Bauer, Falk, & Hammerschmidt, 2006).

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Parasuraman, Zeithaml, and Malhotra (2005) conducted extensive research testing the respective variables and examined the relative importance of the various e-service quality dimensions in influencing online shoppers’ overall quality perceptions. Therefore, the researchers selected the online stores amazon.com and walmart.com, thereby covering the two major types of retailing: Whereas amazon.com has no physical counterpart, walmart.com is well known for its physical stores. Furthermore, the two selected stores differ in terms of type and variety of products sold (Parasuraman, Zeithaml, & Malhotra, 2005). According to standard procedures for refining scales, the initial E-S-QUAL items were subject to reduction into four dimensions consisting of 22 items.

Efficiency. The first dimension of the E-S-QUAL scale refers to the ease and speed of

accessing and using the website (Parasuraman, Zeithaml, & Malhotra, 2005). The efficiency dimension is considered as very important in an e-commerce context, as the main reasons for online shopping are generally convenience and saving time (Ranganathan & Ganapathy, 2002).

Fulfillment. Fulfillment refers to the extent of which a website’s promises about item

availability and order delivery are fulfilled (Parasuraman, Zeithaml, & Malhotra, 2005). According to Yang and Fang (2004), fulfillment significantly contributes to the judgment of an online shop’s quality, since the elements of keeping a service promise as well as accurate order fulfillment can lead to customer satisfaction or dissatisfaction.

System Availability. System availability is “the correct technical functioning of the

site” (Parasuraman, Zeithaml, & Malhotra, 2005, p. 8). System availability is considered important as problems such as non-working buttons, missing links, or unavailable content might disappoint customers and lead to extinct. Therefore, it might also take the retailer’s chance to enhance customer loyalty (Wachter, 2002).

Privacy. Privacy refers to the degree to which customer information is protected and

the website is safe. Still, many people perceive risk of maltreat of their personal information when purchasing online, wherefore online retailers are becoming more acquainted with the

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importance of providing user privacy (Ranganathan & Ganapathy, 2002). Different research has shown that privacy has a strong effect on overall site quality (Yoo & Donthu, 2001), intention to purchase, and customer satisfaction (Szymanski & Hise, 2000).

2.3.6 eTransQual by Bauer, Falk, and Hammerschmidt (2006)

As most existing e-service quality scales mainly focus on goal-oriented online shopping, Bauer, Falk, and Hammerschmidt (2006) develop a transaction process-based measuring scale for e-service quality named eTransQual. Based on exploratory and confirmatory factor analysis, five dimensions of e-service quality were identified: functionality/design, enjoyment, process, reliability and responsiveness (Bauer, Falk, & Hammerschmidt, 2006). The dimension of enjoyment is included, as the researchers assume that, comparable to the physical environment in offline transaction, the interface of a website provides extrinsic cues in virtual service encounters. These are believed to trigger emotional responses (van Riel, Liljander, & Jurriens, 2001; Yoo & Donthu, 2001), especially due to the Internet’s characteristics such as multimedia, interactivity, and a high level of control during navigation. Bauer, Falk, and Hammerschmidt (2006) are able to demonstrate strong evidence for the importance of hedonic aspects and their impact on the tested marketing outcome variables such as service quality, perceived value, and satisfaction. The researchers are able to show that the dimension of enjoyment, which has been neglected in various empirical studies before, has the strongest impact on relationship duration. This outcome, in turn, is an important driver of customer lifetime value and thus customer profitability (Bauer, Falk, & Hammerschmidt, 2006). Furthermore, this dimension appears to be especially interesting when considering the distinctive characteristics and functions of luxury products. Correspondingly, Fionda and Moore (2009) outline the psychological value and highly involved consumption experience of luxury products. Consequently, the e-service quality dimension of enjoyment might be crucial for luxury brands’ e-commerce experience and, as already shown by Bauer, Falk, and Hammerschmidt (2006), on relationship duration.

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2.3.7 Overview of Selected E-Service Quality Dimensions for Luxury Products

The following part summarizes the presented pre-selected dimensions from Santos’ (2003), Parasuraman, Zeithaml, and Malhotra’s (2005), and Bauer, Falk, & Hammerschmidt’s (2006) and outlines their respective rankings of importance. These e-service quality dimensions will form the basis for the subsequent research of this work.

As previously described, Santos’ (2003) framework of e-service quality provides a ranking of the e-service quality dimensions in accordance to their respective importance (see Appendix A). Regarding the incubative dimensions, ease of use and appearance are classified as highly important; within the active dimensions, the factors reliability and efficiency must be considered as central. Opposed to that, linkage, structure and layout, and content from the incubative dimension are ranked as less important. Respectively, support, communication, security, and incentive are categorized as secondary within the active dimension.

Parasuraman, Zeithaml, & Malhotra (2005) conclude from their study that the dimensions efficiency and fulfillment are the most critical, but equally important, dimensions of the E-S-QUAL scale. As Table 2 shows, the dimension that is comparable to the efficiency dimension provided by Santos (2003) also ranks as most important (ease of use). However, Santos (2003) does not provide a dimension to measure fulfillment. From efficiency and fulfillment, the factor customers’ assessment of a website does not only have the “strongest influence on overall quality perceptions but also on perceived value and loyalty intentions” (Parasuraman, Zeithaml, & Malhotra, 2005, p. 18). Moreover, the availability of a website significantly contributes to customers’ overall quality perception as well as their perception of value and resulting loyalty intentions (Parasuraman, Zeithaml, & Malhotra, 2005). In addition, the authors outline that the privacy dimension of the E-S-QUAL scale is the least critical one, however, still having a significant influence on the evaluation. This finding is also supported by Santos’ (2003) ranking of importance.

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Table 2: Comparison of E-Service Quality Dimensions Provided by Parasuraman et al. (2005), Santos (2003) and Bauer et al. (2006)

Dimensions e-S-QUAL by Parasuraman, Zeithaml, and Malhotra (2005)

Dimensions Santos (2003)

Dimensions eTransQual by Bauer, Falk, and Hammerschmidt (2006)

Efficiency Ease of use Process, responsiveness Structure and layout

Fulfillment Reliability

System availability Reliability Reliability Linkage

Privacy Security Reliability

Appearance Functionality / design

Content (Functionality / design: item: relevance of information)

Support

Communication Incentive

Enjoyment

Parasuraman, Zeithaml, and Malhotra (2005) note that the “purpose of E-S-QUAL is solely to measure the service quality of websites” (p.17), wherefore experiential aspects such as fun or pleasure are not included in the proposed dimensions. Santos (2003) does also not provide a dimension that captures the hedonic experience of a website; yet, aspects of appearance are investigated (Appendix A, Table 2). However, taking luxury products’ distinctive characteristics into consideration (see Part 2.1), it becomes apparent that hedonic elements might very well play a role for e-service quality. Peck and Wiggins (2006) assert that aesthetics and polysensuality play an important role in consumers’ purchase decision at the point of sale when customers are able to experience the luxury product’s exclusivity with all their senses. Transferred to an e-commerce context, the website represents the point of sale. Accordingly, Bauer, Falk, & Hammerschmidt’s (2006) dimension of enjoyment is included in the eTransQual scale to capture potential hedonic elements that are relevant for e-service quality in a luxury product setting.

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To conclude, Table 2 presents the dimensions of e-service quality that will be examined in the following part of the work. These are efficiency (ease of use, structure and layout, process), fulfillment (responsiveness), system availability, privacy (security), appearance, content, support, communication, incentive, and enjoyment.

3 Qualitative Research (First Stage of the Research Process)

3.1 Research Approach

As the existing e-service quality literature remains insufficient to investigate the relevant dimensions of e-service quality for luxury products, empirical research is required to clarify the most important determinants for luxury product e-commerce. The key to answer the underlying research questions is to find, among the pre-selected e-service quality attributes, which dimensions are most crucial to enhance the level of e-service quality for luxury shopper.

On that account, this work implements a two-staged research approach that mixes qualitative and quantitative approaches across the stages of the research process (Appendix B). In academic research, the integration of quantitative and qualitative research has increasingly evolved into to a formalized approach and became progressively common in recent years (Bryman, 2006; Creswell, 2013).

In the first stage, a qualitative phase of research comprising industry expert interviews is initiated to identify the relevant determinants of e-service quality in a luxury product setting. This work uses the discovery-oriented, theories-in-use approach (Zaltman, LeMasters, & Heffring, 1982) that combines academic literature and the use of in-depth expert interviews in order to develop conceptual themes (Malshe & Sohi, 2009). The investigated determinants of e-service quality result from reviewed literature and are based on the multiple-item scale for assessing e-service quality by Zeithaml, Parasuraman, and Malhotra (2005), the dimensions provided by Santos (2003), and Bauer, Falk, and Hammerschmidt’s (2006) model eTransQual. These dimensions are discussed, evaluated, and ranked in collaboration with the industry

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experts. Thus, this work complements findings from a review of existing e-service quality literature with managerial insights from the expert interviews conducted.

In the second stage of the research process, a quantitative phase in form of a survey is introduced to provide a description of online luxury shoppers’ attitudes towards the previously selected e-service quality dimensions and their respective outcomes. Furthermore, the survey aims to investigate luxury shoppers’ behaviors and motivations. Therefore, a sample of the online luxury shopper population is investigated.

This across-stage mixed research model design (see Appendix B) allows generating explorative results in the qualitative stage that are used to develop and inform the design in the subsequent quantitative stage of the research (Johnson & Onwuegbuzie, 2004). Thus, the strengths of both qualitative and quantitative approaches are incorporated in the selected approach. The two stages of the research approach are explained in detail in the following part of this chapter.

3.2 Qualitative Research Method

Qualitative research allows, in contrast to quantitative measures, an internal perspective on the subject under investigation (Pratt, 2009). Furthermore, the qualitative, discovery-oriented phase is used to provide a roadmap for the research process. This work employs qualitative interviews to evaluate and discuss the pre-selected dimensions of e-service quality, identify potential missing elements, rank the selected dimensions according to their importance for luxury products, and understand their importance for the luxury product segment. As described previously, the investigated e-service quality dimensions result from reviewed literature and include efficiency, fulfillment, system availability, privacy and security, appearance, content, support, communication, incentive, and enjoyment (Bauer, Falk & Hammerschmidt, 2006; Santos, 2003; Zeithaml, Parasuraman & Malhotra, 2005). Furthermore, the qualitative interviews aim to uncover consumers’ motives and behaviors in an e-commerce luxury product setting.

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Two telephone interviews with industry experts from a globally leading luxury product manufacturer were conducted to obtain rich insights into the emerging construct of e-service quality for luxury products. This work drew heavily on the knowledge of industry experts to evaluate the several pre-selected dimensions of e-service quality and identify the ones crucial for luxury product e-commerce. The candidates for the expert interviews were selected according to a snowball sampling approach (Stracy, 2012). Due to the luxury sector’s taciturnity it was necessary to exploit the researcher’s personal network and gain access to the first interview candidate. After identifying the first industry expert, the subsequent interview partner was suggested by the respective candidate (Stracy, 2012). This approach allowed reaching the difficult-to-access population of employees of luxury companies and resulted in a total of two industry experts interviewed for the purpose of this work. Due to reasons of confidentiality, the names of the industry experts may not be published.

The telephone interviews with the industry experts were obtained using an unstructured interview technique including predominantly open questions (King, 2004). In accordance with King’s (2004) recommendations, the interview questions were designed in order to enable the interview participants to share their experiences and insights in the luxury product industry with the researcher (see Appendix C). As flexibility is critical for successful interviewing, the predefined order of questions was adjusted during the course of the interview, which made it possible to specify on relevant points (King, 2004).

3.3 Qualitative Data Analysis

Generally, few guidelines for analyzing qualitative data exist (Bryman, 1989; Yin, 2003). Nevertheless, most academic literature asserts that detailed interview transcripts constitute the core of the analysis (Eisenhardt, 1989; Barratt, Choi, & Li, 2011). In this regard, the qualitative analyses of the interviews with the industry experts are based on the audio recordings, the prepared transcripts, and the notes taken during the interview process. The transcribed interview amounted to less than 20 pages, wherefore clustering of statements, a reduction of

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data, or coding was not in case of need. A total of ten e-service quality dimensions were evaluated and ranked in order of importance for luxury products. Furthermore, potential outcomes were discussed.

3.4 Discussion of E-Service Quality Dimensions

In the following section of this work, insights from the literature review are complemented with the findings obtained in the qualitative interviews to discuss and examine the relevant e-service quality dimension for luxury products.

3.4.1 Efficiency (Ease of use, Structure and Layout, Process)

Parasuraman, Zeithaml, and Malhotra (2005) already demonstrated the positive effects of efficiency on perceived value (standardized coefficient of 0.56) and loyalty (standardized coefficient of 0.36) using regression analyses (p. 16). Thus, one can assume this effect to be present in a luxury e-commerce setting as well. On that account, Expert 1 argues:

I think that the basis [for an luxury e-commerce shop] would be an efficient and available service. From my perspective, this would be the basis of the service or the offer itself. But when it comes to luxury, it has to be much more than that: It should be more sophisticated from the looks, from the communication to the client, and, from my opinion, it should also be personalized.

Thus, and in alignment with the expert’s opinion, this research assumes that the e-service quality dimension of efficiency is certainly present and constitutes the basis of any e-commerce experience. On that account, Expert 1 suggests that testing this dimension is superfluous.

3.4.2 System Availability

As previously described, system availability refers to “the correct technical functioning of the site” (Parasuraman, Zeithaml, & Malhotra, 2005, p. 8). On that account, this work assumes that problems with the website such as non-working buttons or unavailable content might decrease customer satisfaction and consequentially reduce customer loyalty. Rather, this work proposes that system availability is a precondition for customer loyalty and is mediated by customer satisfaction.