How logistics capabilities offered by retailers influence millennials’ online purchasing attitudes and intentions

Abstract

Purpose The purpose of this study is to understand consumers’ use of online retail channels. This study examines how tracking capabilities, delivery speed, trust, logistics carriers’ reputation, people important to the consumer and online reviews influence Millennials’ online purchasing attitudes and intentions. Design/methodology/approach A survey was administered to 321 Millennials. Subsequently, it was used to test both direct and indirect hypotheses using structural equation modeling techniques. Findings The study determined that tracking capabilities, trust, people important to the consumer and online reviews directly influence online purchase attitude and by extension intention formation. The results also revealed that logistics carrier reputation moderates the trust to online purchase attitude linkage. Research limitations/implications This work improves the explanatory power of the theory of reasoned action by linking logistics factors to online shopping behavior. Further, it provides insight into the moderating influence of logistics carriers’ reputation. Practical implications For retailers, the results provide information on how to better develop ecommerce service offerings. By providing information about logistics services and capabilities during the ecommerce transaction, retailers can improve the chance that consumers will complete online purchases. Originality/value This research fills a gap in the literature regarding how to influence millennial consumers. Moreover, findings strengthen the understanding of online-purchasing attitudes and intentions formation, important to retailers developing new online shopping platforms and technologies.