Introduction

The Structural Equation Modeling (SEM) is a very common multivariate method that is often used to simultaneously analyse various relationships (Byrne, 2010). The advantage of SEM over multiple regressions is defined by Hankins, French, and Horne (2000) as “multiple regressions is often applied to study the impact of a single variable and/or a set of independent variables on a single dependent variable, whilst the structural Equation Model examine complicated studies modelling several exogenous (independent) and several endogenous (dependent) variables.”

SEM is devoted to investigating two types of models of dimension and structure (Byrne, 2010). According to (Hair et al. 2010), a measuring model serves two purposes that include calculating dependability and indicators. Moreover (Byrne, 2010) pointed out that SEM uses CFA when employing the measuring model. Namely, CFA is a technique used for testing the measurement models. In contrast, the structural model is devoted to testing the hypothetical relationship among extracted factors and moderation variables. In this study, there is an interest to test the influence of observed variables known as moderating variables on the relationship between the underlying constructs. SEM was applied to examine the two models of study.

The technique of factor analysis is often utilized when investigating relationships between variables that are observed (items) and the interdependencies. The observed (measured) variables can be continuous or discrete (such variables measured on Likert scale). Since there are a number of latent variables (factors) that can be extracted from correlated observed variables, factor analysis aims to convert sets of observed variables that have similar patterns into fewer sets of latent (Fox, 1984). Thus, factor analysis is known as statistical reduction technique.

Assessment and testing of the model of interest were done using the SEM modeling through the path analysis and confirmatory factor analysis (CFA) techniques where CFA was the path analysis and measurement model were used to examine and test the hypotheses.

There are two main parts in this section: CFA results and hypothesis results. For CFA, model fit indices were examined that included validity and reliability of measurement model. Test of normality to justify using ML were also examined. In testing for the hypothesis, regression estimates were estimated using SEM.

Nine constructs with corresponding items were the basis of study model, see Table 6.1. For the measurement model given in Figure 6.1, thirteen constructs were selected in the study model to evaluate the use of Online Shopping Acceptance Model (OSAM): Online Shopping (OS), Online Shopping Experience (OE), Social Media (SM), Convenience (CO), Information Availability (IA), Product Selection (PS), Customized Advertisements (CA), Trend Discovery (TD), Socializing (S), Adventure (AD), Authority and Status (AS), Online Shopping Intention (OSI), Shopping orientations (SO).

and Jones (2000)

Construct Item

Online Shopping OS

OS 1: I feel comfortable when using the social media sites to purchase online. OS2: I feel that the social media sites are easy to use when I purchase online.

Online Shopping Experience

OE

OE1: I am experienced in purchasing online with the use of the social media sites. OE2: I feel competent in using the social media sites when I purchase online.

Social Media SM

SM1: Social Media provide a wonderful means in order to find products or services online. SM2: I use Social Media to go through products or services on company hosted pages when I am online

SM3: I will continue to browse through products and services online via Social Media websites in the future

Convenience CO

CO1: Social Media websites are a convenient medium since I can find products or services whenever I want to.

CO2: It is convenient to find products or services through Social Media since I can do so in the comfort of my own space


CO3: Through Social Media I can find products or services in accordance with my schedule

Information Availability

IA

IA1: Social Media provide me with a quick access to large volumes of information about products or services


IA2: I can collect useful information about products or services I want through Social Media websites

IA3: Comments by other users of Social Media websites help in giving me feedback about a products or services advertised

Product Selection PS

PS1: Social Media help me find more products or services that I was unfamiliar with before PS2: I can find a wide selection of products or services in one website through Social Media PS3: With Social Media I can browse through a large array of products or services

Customized Advertisements

CA

CA1: I find that through information from my profile on Social Media websites, I am presented with products or services advertisements that are more compatible with my likings


CA2: Products or services presented to me on Social Media platforms are customized to my needs


important customer

Trend Discovery TD

TD1: Social Media provide a great platform in order to exchange information with my friends regarding products or services.

TD2: Through Social Media I can be informed and effectively share my experience of newly purchased products or services with others.

Socializing S

SO 1: Social Media provide a great platform to exchange information with my friends regarding products or services.

SO 2: I can make a new friend with other shoppers through Social Media websites

Adventure AD

AD1: I find products or services through Social Media to be stimulating


AD2: To me, finding products or services via Social Media websites is an adventure AD3: I get drawn in to a world of my own when I find products or services on Social Media Platforms

Authority & Status

AS

AS1: When I find products or services on Social Media websites I feel I am in control AS2: Through Social Media websites I feel that I have a good understanding on the products or services features which I find AS3: Social Media enable me to control my products or services browsing

Online Shopping Intention

OSI

OSI 1: When I need to buy a particular product or service, I intend to search for a social media website which has the product or service.

OSI 2: I intend to buy products or services I see advertised on Social Media. OSI 3: I intend to purchase online through social media sites in the near future.

Shopping orientations

SO

SO 1: I like to shop from home (for example, using mail-order catalogues, the TV or the Internet).

SO 2: I shop online because I cannot find what I wanting local stores. SO 3: Shopping online is more convenient than going to the store. SO 4: I can save a lot of money by online shopping.

SO 5: I like to have a great deal of information on social media sites before I buy products or services online