IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v62y2021ics0969698921002228.html
   My bibliography  Save this article

Measuring the role of factors on website effectiveness using vector autoregressive model

Author

Listed:
  • Roy, Gobinda
  • Sharma, Swati

Abstract

Behavioral actions of online customers play an important role in influencing the website's effectiveness for online retailers and online business entities. The leading web analytics software measures the customers' behavior on a website using many key web metrics. However, the role of key metrics in measuring the dynamics nature of website effectiveness has largely been unexplored, especially for the non-transactional website. The study builds on flow theory to fill this gap. It presents a methodology to predict the website's effectiveness by examining the impact of three metrics (average session duration, repeat visit, and bouncing rate) on consumers' online behavioral outcomes witnessed through goal completion (GC) and goal conversion rate (GCR). Vector autoregressive (VAR) method is adopted to analyze the dynamic relations and effect among the metrics. The study provides an in-depth insight into the time-varying effect of each variable on website performance. The findings reveal that an engaged customer with high ASD (average session duration) or who revisits (RV) the site positively impacts GC and GCR. A negative effect of bouncing rate (BR) was found on goal conversion rate and goal completion. Interestingly, the study found granger causality between GC and GCR & ASD, and RV. Based on the findings, the study provides vital theoretical and managerial implications.

Suggested Citation

  • Roy, Gobinda & Sharma, Swati, 2021. "Measuring the role of factors on website effectiveness using vector autoregressive model," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:joreco:v:62:y:2021:i:c:s0969698921002228
    DOI: 10.1016/j.jretconser.2021.102656
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698921002228
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2021.102656?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhongwei Xing, 2018. "The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows," International Economics and Economic Policy, Springer, vol. 15(3), pages 565-586, July.
    2. Carlos Enrique Carrasco Gutiérrez & Reinaldo Castro Souza & Osmani Teixeira de Carvalho Guillén, 2007. "Selection of Optimal Lag Length in Cointegrated VAR Models with Weak Form of Common Cyclical Features," Working Papers Series 139, Central Bank of Brazil, Research Department.
    3. Plaza, Beatriz, 2011. "Google Analytics for measuring website performance," Tourism Management, Elsevier, vol. 32(3), pages 477-481.
    4. McDowell, William C. & Wilson, Rachel C. & Kile, Charles Owen, 2016. "An examination of retail website design and conversion rate," Journal of Business Research, Elsevier, vol. 69(11), pages 4837-4842.
    5. Paul, Justin & Rosenbaum, Mark, 2020. "Retailing and consumer services at a tipping point: New conceptual frameworks and theoretical models," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    6. Golovko, Dimitri & Schumann, Jan H., 2019. "Influence of company Facebook activities on recruitment success," Journal of Business Research, Elsevier, vol. 104(C), pages 161-169.
    7. Tiago, Maria Teresa Pinheiro Melo Borges & Veríssimo, José Manuel Cristóvão, 2014. "Digital marketing and social media: Why bother?," Business Horizons, Elsevier, vol. 57(6), pages 703-708.
    8. Gutierrez, Carlos Enrique Carrasco & Souza, Reinaldo Castro & Guillén, Osmani Teixeira de Carvalho, 2009. "Selection of Optimal Lag Length in Cointegrated VAR Models with Weak Form of Common Cyclical Features," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 29(1), May.
    9. Gunter, Ulrich & Önder, Irem, 2016. "Forecasting city arrivals with Google Analytics," Annals of Tourism Research, Elsevier, vol. 61(C), pages 199-212.
    10. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    11. Anna Podara & Dimitrios Giomelakis & Constantinos Nicolaou & Maria Matsiola & Rigas Kotsakis, 2021. "Digital Storytelling in Cultural Heritage: Audience Engagement in the Interactive Documentary New Life," Sustainability, MDPI, vol. 13(3), pages 1-22, January.
    12. Chatterjee, Patrali & Kumar, Archana, 2017. "Consumer willingness to pay across retail channels," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 264-270.
    13. Gao, Lingling & Bai, Xuesong, 2014. "Online consumer behaviour and its relationship to website atmospheric induced flow: Insights into online travel agencies in China," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 653-665.
    14. Woo, Hongjoo & Ramkumar, Bharath, 2018. "Who seeks a surprise box? Predictors of consumers’ use of fashion and beauty subscription-based online services (SOS)," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 121-130.
    15. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    16. Bernard J. Jansen & Amanda Spink & Chris Blakely & Sherry Koshman, 2007. "Defining a session on Web search engines," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 58(6), pages 862-871, April.
    17. Berthon, Pierre & Pitt, Leyland F. & Watson, Richard T., 1996. "The World Wide Web As An Advertising Medium:," Journal of Advertising Research, Cambridge University Press, vol. 36(1), pages 43-54, January.
    18. Celsi, Richard L & Rose, Randall L & Leigh, Thomas W, 1993. "An Exploration of High-Risk Leisure Consumption through Skydiving," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(1), pages 1-23, June.
    19. Aboubaker Ettis, Saïd, 2017. "Examining the relationships between online store atmospheric color, flow experience and consumer behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 43-55.
    20. Zhang, Chi & Zhou, Kaile & Yang, Shanlin & Shao, Zhen, 2017. "Exploring the transformation and upgrading of China’s economy using electricity consumption data: A VAR–VEC based model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 473(C), pages 144-155.
    21. Chen, Yi-Mu & Hsu, Tsuen-Ho & Lu, Yu-Jou, 2018. "Impact of flow on mobile shopping intention," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 281-287.
    22. Narayan, Paresh Kumar & Smyth, Russell, 2005. "Electricity consumption, employment and real income in Australia evidence from multivariate Granger causality tests," Energy Policy, Elsevier, vol. 33(9), pages 1109-1116, June.
    23. Ozkara, Behcet Yalin & Ozmen, Mujdat & Kim, Jong Woo, 2017. "Examining the effect of flow experience on online purchase: A novel approach to the flow theory based on hedonic and utilitarian value," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 119-131.
    24. Petrescu, Maria & O’Leary, Kathleen & Goldring, Deborah & Ben Mrad, Selima, 2018. "Incentivized reviews: Promising the moon for a few stars," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 288-295.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tian, Xin & Zhu, Jiayi & Zhao, Xuan & Zhou, Xiaoyang, 2024. "Unveiling insights from online shopping carnivals: A pre-vs-post analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Wenyao & Zhang, Wei & Daim, Tugrul U., 2023. "Investigating consumer purchase intention in online social media marketing: A case study of Tiktok," Technology in Society, Elsevier, vol. 74(C).
    2. Zhou, Kaile & Li, Yiwen, 2019. "Influencing factors and fluctuation characteristics of China’s carbon emission trading price," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 524(C), pages 459-474.
    3. Andriamanga, Fidimanantsoa, 2017. "Relation entre l’énergie et la croissance économique : approche empirique appliquée au cas de Madagascar pour la periode 1995 à 2015 [Relationship between energy consumption and economic growth in ," MPRA Paper 82967, University Library of Munich, Germany.
    4. Pao, Hsiao-Tien, 2009. "Forecast of electricity consumption and economic growth in Taiwan by state space modeling," Energy, Elsevier, vol. 34(11), pages 1779-1791.
    5. Hyun, Hyowon & Thavisay, Toulany & Lee, Suk Hyung, 2022. "Enhancing the role of flow experience in social media usage and its impact on shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    6. Liu, Na & Li, Jing, 2024. "The time code of online consumption: Exploring the impact of work hours on online consumption in the retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    7. Ghouse, Ghulam & Khan, Saud Ahmed & Rehman, Atiq Ur, 2018. "ARDL model as a remedy for spurious regression: problems, performance and prospectus," MPRA Paper 83973, University Library of Munich, Germany.
    8. Yulong Luo & Can Wang & Chen Chen & Kangle Ding & Weiliang Zeng, 2021. "Total Investment in Fixed Assets and the Later Stage of Urbanization: A Case Study of Shanghai," Sustainability, MDPI, vol. 13(7), pages 1-29, March.
    9. Wang, Yuan & Wang, Yichen & Zhou, Jing & Zhu, Xiaodong & Lu, Genfa, 2011. "Energy consumption and economic growth in China: A multivariate causality test," Energy Policy, Elsevier, vol. 39(7), pages 4399-4406, July.
    10. Nicholas Odhiambo, 2010. "Finance-investment-growth nexus in South Africa: an ARDL-bounds testing procedure," Economic Change and Restructuring, Springer, vol. 43(3), pages 205-219, August.
    11. Shahiduzzaman, Md & Alam, Khorshed, 2012. "Cointegration and causal relationships between energy consumption and output: Assessing the evidence from Australia," Energy Economics, Elsevier, vol. 34(6), pages 2182-2188.
    12. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2015. "Economic growth with coal, oil and renewable energy consumption in China: Prospects for fuel substitution," Economic Modelling, Elsevier, vol. 44(C), pages 104-115.
    13. Xu, Haifeng & Hamori, Shigeyuki, 2012. "Dynamic linkages of stock prices between the BRICs and the United States: Effects of the 2008–09 financial crisis," Journal of Asian Economics, Elsevier, vol. 23(4), pages 344-352.
    14. Yap, Wei Yim & Lam, Jasmine S.L., 2006. "Competition dynamics between container ports in East Asia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 35-51, January.
    15. Xiaojie Xu, 2017. "The rolling causal structure between the Chinese stock index and futures," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 31(4), pages 491-509, November.
    16. repec:kap:iaecre:v:17:y:2011:i:2:p:157-168 is not listed on IDEAS
    17. Choi-Meng Leong & Chin-Hong Puah & Shazali Abu Mansor & Evan Lau, 2010. "Testing the Effectiveness of Monetary Policy in Malaysia Using Alternative Monetary Aggregation," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(3), pages 321-338, August.
    18. Webber, A., 1999. "Newton's Gravity Law and Import Prices in the Asia Pacific," Economics Working Papers WP99-12, School of Economics, University of Wollongong, NSW, Australia.
    19. Hauser, Shmuel & Kedar-Levy, Haim & Milo, Orit, 2022. "Price discovery during parallel stocks and options preopening: Information distortion and hints of manipulation," Journal of Financial Markets, Elsevier, vol. 59(PA).
    20. Maria Soledad Martinez Peria, 2002. "The Impact of Banking Crises on Money Demand and Price Stability," IMF Staff Papers, Palgrave Macmillan, vol. 49(3), pages 1-1.
    21. Mohammad I. Elian & Khalid M. Kisswani, 2018. "Oil price changes and stock market returns: cointegration evidence from emerging market," Economic Change and Restructuring, Springer, vol. 51(4), pages 317-337, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:62:y:2021:i:c:s0969698921002228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.