Exploring User Retention in WeChat E-Commerce for SME Retailers: Perspective of Perceived Quality and Privacy Calculus

Abstract

The rapid development of e-commerce has brought unprecedented opportunities for small and medium-sized enterprises (SMEs), particularly those in the retail sector. WeChat e-commerce, which combines the advantages of social media and e-commerce, offers SME retailers an accessible and efficient e-commerce solution. As market competition intensifies, user retention has become crucial for their success in WeChat e-commerce. This study extended the Expectation Confirmation Model (ECM) by incorporating perceived quality and privacy calculus to examine users’ continuance intention towards WeChat e-commerce for SME retailers. A total of 694 valid responses were collected from users with prior experience using WeChat e-commerce offered by SME retailers, and the proposed model was validated using structural equation modeling. The results indicated that the trade-off between privacy concerns and perceived benefits significantly affected users’ intention to continue using WeChat e-commerce. Moreover, the information quality and service quality dimensions were found to directly or indirectly influence this continuance intention towards WeChat e-commerce via privacy concerns, perceived benefits, and confirmation. In conclusion, this study provides insights for further research on continuance intention in WeChat e-commerce and suggestions for SMEs to formulate e-commerce strategies.