Structural Effect of Psychological Capital on Online Purchase Intention

Muhammad Zahid Maitlo1; Salman Bashir Memon1; Sumaiya Syed1
1Department of Business Administration, Shah Abdul Latif University
zahidmaitlo2011@gmail.com, somimemon@gmail.com, ssm_syed@yahoo.com
 

Abstract: The online purchase intention is very crucial in today's competitive environment where organizations are constrained to use different mediums for selling goods in order to seize a competitive advantage. The online system provides a platform for shoppers to have their demanded products and service according to their needs. However, online purchase intentions are the building blocks of remote purchase pattern without any physical involvement with the product. Most importantly, customers become more comfortable and hopeful of having good products with an optimistic view. The fundamental objective of this study is to determine the structural effect of PsyCap on online purchase intentions. Data were collected from 213 internet users using convenience sampling technique. The structural equation model (SEM) was used to test the hypothesized model that shows relationship between PsyCap efficacy, PsyCap hope, PsyCap optimism, PsyCap resilience and online purchase intention. The finding of study indicates that customers with positive and strong PsyCap resources lead to frequent online purchase. Thus, customers should keep increase their PsyCap in order to make strong online purchase intentions.

Keywords: Psychological capital, Online Purchase intentions, Structural Equation Model
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