The Effect of Digital Literacy and Website Quality on Purchase Intention in Internet Shopping through Mediating Variable: The Case of Internet Users in Palestine

Abstract

Although the Internet using rate is increased exponentially, many Palestinians are still hesitant to adopt online shopping. Given the significant advantages of online shopping for both Internet users and e-retailers, it is necessary for them to know the key determinants and barriers influencing the adoption of the Internet in shopping. This study provides valuable insight into individuals' intentions towards online shopping. Specifically, it investigates the influence of website quality and digital literacy on individuals' intention towards online shopping based on the Palestinian perspective. The theory of stimulus organism response and social cognitive theory were employed to explain individuals` intention to shop online. The current research conducts structural equation modelling (SEM) to analyze data and employed a quantitative method. The sample size chosen was a representation of Internet users from different backgrounds. The individual respondents were used, and 387 respondents participated in a survey through a questionnaire to collect data. The findings of the empirical analysis confirm that website quality, digital literacy, and trust contribute to positively influencing individuals' intentions towards online shopping. The results also reveal that website quality and digital literacy enhance individuals` trust in the e-commerce context. The mediating effect of trust between website quality, digital literacy and online purchase intention is identified.