Perceived usefulness, service quality and loyalty incentives: Effects on electronic service continuance

Abstract

This paper examines the interrelationships between perceived usefulness, service quality and loyalty incentives on e-service continuance. The Technology Acceptance Model (TAM) was adapted from the information systems (IS) literature and integrated with theoretical and empirical findings from prior marketing research to theorise a model of e-service continuance. Results from a survey of a financial healthcare’s e-service users indicate a positive relationship between perceived usefulness, service quality and loyalty incentives on continuance. Further analysis strongly suggest that continuance is determined solely by the higher perceived usefulness of the e-service while service quality is more effective at lower levels of perceived usefulness. Loyalty incentives did not moderate the relationship between perceived usefulness and continuance. Implications of these findings for firms contemplating e-service initiatives are discussed.