Positive Relationships between Service Performance and Social Media Use in Internet Retailing

Abstract

The purpose of this research is to investigate whether differences in Internet retailer service performance influence the use of social media. Information economic theory is used to hypothesize a positive relationship between performance and social media use. To test the relationship, 516 Internet retailers’ websites were investigated, and their service performance was analyzed based on online customer reviews. Exploratory factor analysis transformed the customer review data into refined measurements. The logistic regression model validated the positive relationship between service performance and social media use. Internet retailers who use social media show higher service performance. However, the significant effect is limited to online service performance. Offline service performance (i.e., order fulfillment service performance) was not significantly associated with social media use. This study considers information symmetry as a critical factor in social media use, which differs from previous studies based on traditional technology acceptance frameworks.