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Determinants of customers’ online purchase intention: an empirical study in India
Arun Thamizhvanan
Great Lakes Institute of Management, Chennai, India, and

Determinants of purchase intention 17
Received 25 April 2012 Revised 6 July 2012 29 August 2012 Accepted 8 September 2012

M.J. Xavier
Indian Institute of Management Ranchi, Ranchi, India
Abstract
Purpose – According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the size of the Indian online retail industry is INR 2000 crore and the industry is projected a steady annual growth rate of 35 per cent to reach INR 7000 crore by 2015. Given the growing importance of the online retail industry in India, it remains imperative for web retailers and internet marketers to understand the determinants of online customers’ purchase intention to decipher what is important to the Indian online customer. This paper attempts to identify the determinants of online purchase intention among youth in the Indian context. Design/methodology/approach – Based on a detailed literature review, customer online purchase intention shopping orientation factors such as impulse purchase orientation, brand orientation and quality orientation were considered along with online trust and prior online purchase experience. The results are based on 95 valid responses received from the online survey. Findings – The research established that impulse purchase orientation, prior online purchase experience and online trust have significant impact on the customer purchase intention. Males are found to have more intention to shop online than females. Research limitations/implications – A bigger and more representative sample which includes respondents from all walks of life would have been appropriate though the internet savvy students contribute the major share of online buyers. Practical implications – The study has implications for web-retailers, marketing managers, internet marketers, online vendors and web-shoppers in India. Indian online shoppers typically tend to seek offers and great value price deals instead of brand or quality. Online retailers may target the impulse purchase orientation nature of Indian consumers and should focus on increasing online trust. Originality/value – In the Indian context, this is the first time shopping orientations have been studied with customers’ online purchase intentions. Keywords Online purchase intention, Shopping orientation, Online trust, Prior online purchase experience, India, Internet shopping, Buying behaviour, Young adults, Retailing Paper type Research paper

Introduction According to Internet World Stats[1], India has the third largest number of internet users in the world after China and the USA despite having a low internet penetration rate of just 8.5 percent. India’s count of internet users has been increasing at a CAGR of 35 percent from 2007. From 100 million users in 2010, the number will touch 237 million users by 2015 as per Boston Consulting Group 2010 report[2]. This large internet base will have a direct impact in the Indian internet shopping or online retail business (also called as e-tailing).

Journal of Indian Business Research Vol. 5 No. 1, 2013 pp. 17-32 q Emerald Group Publishing Limited 1755-4195 DOI 10.1108/17554191311303367

IMF[6] has projected that the per capita income of the Indians under 25 will reach $2. etc. Due to this. only a small percentage of the three million internet users transacted online and the market size was at a modest US$11 million[3]. are ready to spend up to INR 25. 1979) and also in the emergence of internet retailing in the USA (Girard et al.. Cities having a population of under three million has made roughly for one-third of all products purchased online in India. 4G. Before 2009.. The reasons for such phenomenal growth include raising per capita income of the middle class and government initiatives in the telecom sector like introducing 3G. As per Forrester 2012 report[4]. The paper ends by discussing managerial implications. first and foremost. 2004). making a large population net savvy.000 online earlier.5 million every month[3]. 30 million search for bargains online and that number is projected to increase by 1. WiMax services. there has been an evident change in the shopping style of Indian online users who are observed to actively indulge in purchases as part of their daily digital interactions post-2009.com is the biggest contributor accounting for more than one-third of total revenues from e-commerce in 2010[5]. This paper is divided into four parts. The Indian railway web site irctc. industry dynamics. the same Indian e-commerce market is projected to reach US$8. According to a recent article by The Economist (2012). Then. research methodology is presented which is followed by data analysis and findings. the relevance of the research and its contribution is discussed. Less developed distribution in terms of supply chain has also urged the online users of the smaller cities to go online for shopping. Similar studies on non-store shopping orientations of customers in other geographies have contributed to . 2003. Hence. the majority of online purchases in India had been in the travel sector. Rohm and Swaminathan.000 online.500 in 2011[3]. Government banks and railways have encouraged the users to come online for transacting. According to IAMAI[7] 2011 report[8]. the investors have sown more than US$450 million in 2011 alone[3]. After the introduction.com (Indiaplaza now) in 1999. limitations of the research and recommendations for future research. This paper attempts to provide unique insights into the Indian online consumer’s mindset by discussing the determinants of their online purchase intention. Convinced of the growth potential in Indian e-commerce. in order to take full advantage of the Indian online market. firms need to have a clear understanding of the Indian online users’ preferences and mindset.JIBR 5.300 by 2016 from $1.1 18 When India had its first e-commerce web site Fabmart. Another First Data-ICICI 2012 report[9] highlights a similar shift that urban Indian online users who were not ready to spend more than INR 5. researches in shopping orientation are of paramount importance. out of 100 million Indians who surf. It is followed by a detailed review of literature of all the constructs involved in the study concluding with the hypotheses of the proposed research. in addition to the other factors like governmental policies.8 billion by 2016 and its growth will be the fastest within the Asia-Pacific region at a CAGR of over 57 percent during 2012-2016. Relevance of the research and its contribution For understanding the emergence of new markets. the young city dwellers too will eventually have more money to spend online in the coming years. Researches on shopping orientation have offered rich insights into understanding the emergence of catalog retailing in the USA three decades ago (Berkowitz et al.

. and (3) to empirically test the influences of demographics on customer online purchase intention among Indians. the cyber laws and its regulatory framework are also in a nascent stage.. Ganguly et al. The growth of internet in India is still considered to be in nascent stage as the internet penetration has not even exceeded 10 percent. India has its own unique set of sensitivities and socio-psychological barriers. 2001. 1990. Dash and Saji (2007) have investigated the effect of web site characteristics on online trust. 2003). there is no significant scholarly research to study the role of different factors on Indians’ online purchase intentions. in this paper. Ling et al. Furthermore. for understanding the online shopping behavior mindset. 2010). Therefore. (2002) asserts that cross-cultural sensitivities ought not to be ignored at all. Seock. as they are more important in an online shopping context than offline context.. followed by the literature on the other determinants of purchase intention leading to the development of hypotheses. 2001a. Online trust has been the predominant influence on customer online purchase intention (Jarvenpaa and Tractinsky.. Prior online purchase experience has been found to have a significant effect on purchase intention in the Western context (Shim and Drake. There are many reasons for saying that the Indian context is different. Furthermore. Purchase intention is the final consequence of a number of various factors in an online shopping context (Ling et al. internet marketers are always encouraged to explore the determinants of customer online purchase intention. 2003. Shim et al.. education and the like have been studied for their effect on adoption of customer online purchase (Li et al. Shim et al. 2010). The Indian online market is distinct from the other markets being covered in the present studies. Pavlou.. gender. (2009) have studied the mediatory influence of online trust. especially in online research. Thus. prior online purchase experience. 2010). Despite these findings.a greater understanding of the online markets in the respective countries (Brown et al.. Therefore. online trust. Determinants of purchase intention 19 .. Gehrt et al. determining the validity of the identified factors influencing online purchase in the west and other developed e-commerce markets seems to be appropriate before using the existing findings in an Indian context. 2007) and also in other developed e-commerce markets like Malaysia (Ling et al. objectives of our study are: (1) to review the past literature on the constructs taken for the study. 2001a. prior findings would remain valid only in their own confined contexts. Shopping orientations have shown significant effects on purchase orientation in a Western context (Brown et al. 1999. demographics and prior online purchase experience on the customer online purchase intention in the Indian context. b). online trust on the customer online purchase intention among Indians. the relevance of these findings in Indian context remains debatable. Unless the findings are validated in different cultural settings across the globe. (2) to empirically test the role of shopping orientation. 1999). Regarding the studies in an Indian context.. we attempt to examine the influence of shopping orientation. Culturally. Shankar et al. 2001. To the best of our knowledge. b. Literature review In this section. the literature concerning the key construct of the study namely customer online purchase intention is discussed first. Demographic factors like age.

Thus. 2002. 2006.. thus we propose: . (2005) categorized the antecedents into three categories namely. In the Indian context. prior online purchase experience leads to the reduction of uncertainties and eventually leads to an increase in the customer purchase intention (Shim and Drake. perceived characteristics of the web as a sales channel.1 20 Customer online purchase intention According to the theory of reasoned action. 2003). 1969). 1999). 1980). the influence of the online trust as of mediating effect has been studied on customer online purchase intention (Ganguly et al.. Lim et al. Prior online purchase experience and customer online purchase intention Future behavior is determined by prior experiences. Trust contributes positively towards the success of online transactions (Jarvenpaa and Tractinsky.JIBR 5. the study confines itself in studying the effect of shopping orientations. 2006).. thus identifying more than 80 variables as antecedents. 2005). 2010). we propose: H1. 2001). 2003). consumer behavior could be predicted from its corresponding intentions (Ajzen and Fishbein.. prior online purchase experience. Pavlou (2003) observed online purchase intention to be a more appropriate measure of intention to use a web site when assessing online consumer behavior. 2007). McKnight et al.. trust and risk play significant roles in effecting online transactions (Pavlou. Online trust needs to be there when personal financial information and personal data is shared while making a purchase online (Egger.. (2001a. 2009). Online trust and customer online purchase intention Online trust is a necessity when it comes to online shopping (McCole and Palmer. 1990). Customer online purchase intention is defined as the construct that gives the strength of a customer’s intention to purchase online (Salisbury et al. Online shoppers who have bought products online are more open and inclined to shop online than others (Lee and Tan. b) found that past satisfactory online purchase will lead to future online purchase while past negative experience will decrease online purchase intention. Due to the risky nature of online shopping. Chang et al. While developing a reference model for summarizing the antecedents of customer purchase intention from 45 research studies on online shopping. Since online transaction involves information sharing and purchase action. online trust and demographics on online purchase intention as these have not been studied together in the Indian context. Numerous studies have concluded that the higher consumer online trust will result in higher customer online purchase intention (Verhagen et al. Higher customer online trust will lead to higher customer online purchase intention. In order to trigger online purchase intention among consumers. Intentional measures are more effective than behavioral measures in drawing new customers as customers tend to skip real preferences because of their constraints (Day. 2006. Shim et al. purchase intention will depend on many factors (Pavlou. In the Indian context. In an online shopping environment. 2001). Knowing that it is not possible to explore them all.. web site and product characteristics and consumer characteristics. 2003). Online purchases are still considered to be risky compared to offline retail purchases (Laroche et al. Online trust is based on the perception of the risks or benefits of the online transaction (Teo and Liu. web retailers often need to focus on these factors to enhance the chance of purchase by customers. Ling et al.

novelty. Thus. impulse purchase. Higher quality orientation will lead to higher customer online purchase intention. The concept of shopping orientation refers to a specific segment of lifestyle that is operationalized by various activities. Higher prior online purchase experience will lead to higher customer online purchase intention. Vijayasarathy and Jones (2000) segmented the shoppers into seven distinct varieties namely: in-home shoppers. Of all the seven shopping orientations. Gehrt et al. In an online shopping context. In internet transactions. c. Bellenger and Korgaonkar (1980) found that one of the things that recreational shoppers tend to take into consideration is quality when choosing stores for shopping. we propose: H5.H2. According to Piron (1991). males were found to shop online more than females (Li et al. Impulse purchase orientation. Brand orientation. price and convenience. Impulse purchase behavior is an action done without any prior plan as a result of a stimulus. Thus. Access to credit card and computer Determinants of purchase intention 21 . a.. They found in-home shoppers more inclined to online purchase and having higher purchase intention than the rest of the classes. ethical shoppers and convenience shoppers. 2000). b. we propose: H3.. These three orientations were chosen for this study. we propose: H4. Thus. Quality orientation. brand.. With the rampant growth of online shopping. interests and opinion statements relevant to shopping (Li et al. customers use trusted corporate and brand names in place of product information while purchasing online (Ward and Lee. Higher brand orientation will lead to higher customer online purchase intention. Impulse purchase behavior happens when a customer feels the urge to purchase something at the very instant without any more evaluation (Rook. Demographic factors Though demographic variables are not extensively studied. shopping orientation comprises of many constructs referring to different attitudes and opinions. personalized shoppers. mall shoppers. 1999). 2001). Jayawardhena et al. impulse purchase orientation. Being regarded as a multi-dimensional construct. economic shoppers. Seven shopping orientation types identified by Gehrt et al. (1999) asserted that shopping orientation is one of the prime indicators of making online purchases. quality. 2010). 1999). 1987). (2007) are recreation. Higher impulse purchase orientation will lead to higher customer online purchase intention. the studies made by Donthu and Garcia (1999) have found that impulse purchase orientation is a default characteristic of an online shopper. Shopping orientations and customer online purchase orientation Shopping orientations are defined as a general disposition toward the acts of shopping (Brown et al. quality orientation and brand orientation were perceived as more important from the web retailer perspective and often investigated together (Ling et al. Swaminathan et al. (2007) have established from their study that there is a significant effect of brand orientation on customer online purchase intention. (2007) found that customers who shop for recreation online are significantly associated with quality..

age and level of internet usage on online purchase intention. Questionnaire design The questionnaire developed had two parts. (2007) and Seock (2003) were adapted for developing multi-scaled items for independent variable constructs namely “brand orientation”. 95 respondents had shopped online and only those were asked to fill the questions based on the variables of the study. level of internet usage. The development of questionnaire design and the selection of the sample are explained in the following paragraphs. The response rate for the e-mail questionnaire was 30. a sample size of 80 would be . Hence in our research study. The studies done by Gehrt et al. since students from management schools have continuous internet access provided by their institutes. The multi-scaled items used to measure the constructs were sourced from different research studies. Furthermore. The respondents were instructed to remember the recent online purchase experience when they were filling in the questions on “online trust”. age. we propose to study the effect of gender. education. In total. above 25 percent) is expected to be explained. descriptive research design was chosen for the study. gender. Each statement was presented as a five-point Likert scaled-response question with 1 being “strongly disagree” to 5 “strongly agree”. between 21 and 30 and have a high internet usage. 2002). 2009). The first part of the questionnaire had questions on demographic details of the potential respondents including gender. “quality orientation” and “impulse purchase orientation”. number of hours of internet use in a day and possession of a credit card or internet banking facility. Research methodology Owing to the existence of a body of knowledge in this area and the identification of hypotheses. The scale items of “online purchase intention” were adapted from Kim et al.JIBR 5. (2004) while those of “prior online purchase intention” were adapted from Brunelle and Lapierre (2008). In studies where large variance (i. They found that the profile of online shoppers tends to be male. they became an ideal target sample for our study. well educated. time. credit card and computer usage experience on customer online purchase experience. age group. 110 responses were received.6 percent which can be compared as equivalent to the average e-mail questionnaire response rate of 33 percent found in recent research studies (Shih and Fan.1 22 experience has a significant effect on purchase intention (Slyke. Sampling Most of the online shoppers in India belong to younger age groups according to IAMAI 2011 report[10] and they are found to be the heavy users of the internet according to the Comscore 2011 study[11]. Sin and Tse (2002) have studied various demographic variables like education level.e. cost and ease of report generation. education level. A total of 360 postgraduate MBA students from two private business schools were invited to participate in this research through e-mail by sending the link to fill the survey online. The items on “online trust” were based on the studies by Chen and Barnes (2007). The online survey method was chosen as it had more advantages over the intercept survey in terms of reaching out to the target sample. Out of 110 responses. The second part of the questionnaire had 33 statements covering the independent and dependent variables of the study.

Then.42 31.sufficient for a regression model having up to 20 predictors (Field. The details of those respondents are represented in Table I. More than half of the respondents (58 percent) had both credit card and netbanking facility. the demographic profile and technical profile of respondents are presented. the multiple regression diagnostics and the regression analysis findings are discussed.21 16. Data analysis and results This section deals with the presentation of survey findings.84 18. Hence.68 50. The summary details of the other categorical variables. At first. There were nearly 50 percent of respondents from each level of education namely. data analysis reports and discussion of the findings.16 33. The sample size of above 30 is adequate to fulfill the assumptions of normality required to conduct ANOVA.47 Determinants of purchase intention 23 Table I.11 Categories Less than 2 hours Above 2 and up to 4 hours Above 4 and up to 6 hours Above 6 and up to 8 hours Above 8 hours Credit card only Netbanking only Both None Creditcard or netbanking facility Table II.16 86. Further. Profile of respondents The profiles of 95 respondents who have shopped online before were taken for the study and the rest were discarded. Demographic profile of respondents Variable Number of hours of internet use per day % 8.05 2. bachelors and masters level. Technical profile of respondents .53 49. It is followed by the reporting of reliability test and validity test findings of the questionnaire. the one way ANOVA test findings are discussed for understanding the influence of demographics on customer online purchase intentions. namely “the number of hours per day” and “possession of credit card or netbanking facility”. are given in Table II. 2005).95 3. the processed 95 responses were considered sufficient to carry out both the tests in our study.58 24.32 13.84 23.68 61. About 73 percent of the respondents were male and 82 percent of the respondents were below 30 years of age. Variable Gender Age Education Categories Male Female Below 30 Above 30 Bachelors Masters Frequency 73 22 82 13 48 47 % 76.

the Cronbach’s a-values were well above 0. Field (2005) describes the assumptions as follows: (1) normality.2 and VIF values below 5. All items were easily discriminated and grouped according to the respective constructs. The convergent validity is established by factor loadings greater than 0. (2001). When the histogram was drawn. The results are presented in Table III.000. (5) absence of heteroscedasticity. (4) absence of multicollinearity. when the scatter-plot diagram was generated. The SPSS output shows that the Eigen-values for all constructs were greater than 1. (3) independence of error term.5 and 1. For all constructs except “quality orientation”. Regression diagnostics. Multiple regression analysis a. The value of Kaiser-Meyer-Olkin (KMO) was 0. The six assumptions of regression analysis have to be addressed before proceeding for regression analysis as per theory. There was no multicollinearity in the data. The total variance explained by the six factors extracted is 72. and (6) absence of outlier and influential observations. Both these tests show that principal component analysis was appropriate for the data collected from the survey. showing the independence of error term. confirm the reliability of the scales used.. The statistical test for Bartlett test of sphericity was significant ( p ¼ 0.50.785 and in the acceptable range of 0.023 percent. The absence of outlier and influential observations were established by the normal p-p plot analysis showing a uniform spread around the normal probability plot of a straight line when graphed against the predicted values. 2001). indicating the internal consistency of the scales of the constructs used in the study.259 for “online trust” to the least 1. ranging from the highest 4. Thereby a-values.1 24 Reliability test Reliability analysis was done on all the constructs by calculating Cronbach’s a. The details of the principal component analysis are presented in Table III.JIBR 5. The value of Durbin-Watson was 1. it was included in the study to improve the overall representativeness of the model.5.517 which is above the cutoff for rejection.0. No heteroscedasticity was observed and the distribution was linear in nature.0. . Since the “quality orientation” had a Cronbach’s a of 0.524 which was relatively nearer to 2. df ¼ 231). as the tolerance statistics were all above 0. The data from the survey were subjected to two tests before principal component analysis was done.432 for “quality orientation”. (2) linearity. The factor analysis was done using VARIMAX procedure for orthogonal rotation. Validity test Principal component analysis was used to measure the construct validity (Cavana et al. George and Mallery (2003) recommend rejecting any construct which has a Cronbach’s a of less than 0. the distribution of residuals was symmetric and unimodal satisfying the normality assumption. There were no overlapping items which establish discriminant validity.7 as recommended by Cavana et al.

833 0.625 0.825 0.522 0.987 2.723 0. cumulative percentage rotation sums of squared loadings ¼ 72.768 0.033 0.508 0.931 Prior online purchase experience 12.646 0.950 0.777 1.839 0.782 1.785. I feel released It is important for me to buy online products/services with well-known brand names When I shop online for products/ services.927 0.600 0. Factors identified by the principal components factor analysis . I would prefer to buy wellknown brand name I feel comfortable of using the online shopping web sites I am experienced with the use of the online shopping web sites I feel competent of using the online shopping web sites I was happy with my online shopping I was pleased with my online shopping I was satisfied with my online shopping I like online shopping Online shopping web sites are a fit means to buy products The online retailer wants to keep promises and obligations The web site of this online retailer keeps my best interests in mind The online retailer is trustworthy and honest The online retailer wants to keep promises and obligations The infrastructure of the web site of this online retailer is dependable Compared to other web site offered the web site of this web-retailer is secure and reliable The web site of this online retailer offers secure personal privacy The availability of high quality products/services provided by the webretailer is very important to me My standards and expectations from the products/services I buy from webretailer are very high Factor Eigenloading value 0.785 0.744 Determinants of purchase intention 25 Brand orientation 9.820 0.259 19.864 Online trust 4.522 0.853 0.517 Notes: KMO measure of sampling adequacy ¼ 0.000 ( p .167 Percentage of variance explained 9.855 0.675 0.851 Cronbach’s reliability coefficients 0.811 0.812 0.Factor’s name Variable Impulse purchase orientation When my intention is to merely browse through the web site. p ¼ 0. 0.05).887 Quality orientation 6.713 0. df ¼ 231. I sometimes make a purchase I am impulsive when purchasing products/services online When I purchase products/services spontaneously from the web-retailer.844 0.432 3.36 0.811 0.032 Table III.869 Purchase intention 14.757 0.217 2.

Results of multiple linear regression analysis Notes: Dependent variable – online purchase intention. R 2 ¼ 0.05.263 3. Thus.072 0.002 0. 2010). F(5.823 0. online trust and prior online purchase experience.399 0.049 Standardized coefficients b t Sig. Online trust and prior online purchase experience “Online trust” is found to have a significant impact on the dependent variable “customer online purchase intention” as the p-value was less than 0. As the majority of Indian internet users belong to the younger age group.434.400. 2001. quality orientation. (2007) which states that “impulse purchase shopping orientation” will positively affect the “customer online purchase intention”. Multiple linear regression was conducted to determine the structure of the relationship between the independent variables namely online trust. This finding is consistent from the existing literature in the Western context by Zhang et al.156 0.096 0. p .037 0.114 0. it is understandable that the Indian online users are as impulsive as the Western when it comes to intention to purchase online.003 0.326 0. 0.390 0. as indicated by prior studies in other geographies.820 1.659. independent variables – impulse purchase orientation. prior online purchase experience.117 0. Therefore. The results are given in Table IV. This similarity could be explained.225 3. Regression results.045 0.166 26 Table IV.300 0. 0.094 0. impulse purchase orientation. Ling et al. brand orientation.118 1.05. brand orientation and quality orientation on the dependent variable that is online purchase intention. the research concludes that an impulse purchase orientation has significant impact on the customer online purchase intention.1 b.120 0. Unstandardized coefficients b SE (Constant) Online trust Prior online purchase experience Impulse purchase orientation Brand orientation Quality orientation 0. Hence we see similarity between the Indian online shopper and the shoppers from the other countries. adjusted R 2 ¼ 0. Here too.069 0. the following interpretations are derived. This represents that in an Indian context too.287 0.001 .069 0. Shopping orientations The p-value of the impulse purchase orientation ( p-value ¼ 0. Hence.JIBR 5.734.125 0.037) is less than the cutoff value of 0. we find that our H1 is supported. From Table IV.. There appears no difference between the Indian consumer and the rest of the world as per available studies in online trust as “online trust” has been found to be an integral component of customer purchase intention in studies conducted abroad (McCole and Palmer. 89) ¼ 12. H3 is accepted. R ¼ 0.042 2. customers who purchase online need to have trust in the online web retailer. we find no difference between online shoppers of India and others as per the studies. H2 about “prior online purchase experience” having a positive effect on the customer purchase intention was supported by the regression results as its p-value was less than 0.05. and prior online purchase experience seems to positively affect online purchase intention. This is in concurrence with the research findings of Shim and Drake (1990) who found that “prior online purchase experience” enhance customer purchase intention by reducing uncertainties.180 0.509 0.

The second unique distinction we find about an Indian online user is that he/she has no quality orientation when it comes to intention to shop online. number of hours of internet use per day and possession of a credit card or netbanking facility.05 at 5 percent significance level).180). Likewise. “online trust” and “prior online purchase experience” are significant (as p-values are less than 0. the results show that “quality orientation” also has no impact on purchase orientation as its p-value ¼ 0. H5 is also rejected. age. This is quite different from the finding of Gehrt et al. Hence the “online trust” is the most important determinant in affecting the customer online purchase intention (with standardized b of 0. One way ANOVA results are summarized in Table VI. Regression equation The multiple regression equation based on the SPSS output is given below: Customer Online Purchase Intention ¼ 0:114 þ 0:096 ðImpulse Purchase OrientationÞ þ 0:069 ðQuality OrientationÞ þ 0:125 ðBrand OrientationÞ þ 0:390 ðOnline Trust Þ þ 0:287 ðPrior Online Purchase ExperienceÞ Relative importance based on regression output The unstandardized b-coefficient among the independent variables ranges from 0. This is contrary to the findings from the studies done in Western contexts which find brand orientation positively influencing customer online purchase intention (Jayawardhena et al.05. education.The regression results point out that brand orientation has no impact on purchase intention as the p-value of 0.326) followed by prior online purchase intention (with standardized b of 0. Determinants of purchase intention 27 . 0. 2007).069 to 0.072 is greater than 0. H4 is rejected. It indicates that the standardized b-coefficients of “impulse purchase orientation”.. brand orientation and quality orientation have no significant effect on the customer purchase intention in India. Hence.166 (. Therefore. p-values of independent variables are checked. (2007) who has concluded that quality orientations would positively affect the customer online purchase intention. When compared to other countries as per prior studies. Table V presents the hypotheses outcomes based on regression results.300) and with “impulse purchase orientation” having the least influence (with standardized b of 0. We find the first distinction of the Indian online user that he/she has shown no brand orientation when it comes to intention to shop online.05). One way ANOVA: demographics on online purchase intention One way ANOVA analyses was conducted to find out if there is any relationship between the demographic variables taken in the study and customer online purchase intention.390. It may be due to the fact that Indian student online shoppers are seeking offers and great value price deals instead of getting oriented by brand or quality. Before looking at the standardized b-coefficients. One way ANOVA compares the means to find any significant differences across the categories of the non-metric independent variables like gender.

358 93) ¼ 0. of hours of internet use per day Creditcard or netbanking F-statistic F(1. marketing managers.1 Independent variables tested Online trust Prior online purchase experience Hypotheses H1. Higher prior online purchase experience will lead to higher customer online purchase intention H3. Higher impulse purchase orientation will lead to higher customer online purchase intention H4. F(4. no. the online retailers could concentrate on drawing the online shoppers with attractive deals for a limited time. Online retailers could also encourage the one time customers to purchase again by offering special discounts or offers as a reward for .370 0. But in the Western context. F(1.026 * 0.JIBR 5. The means reveal that males have higher online purchase intention than females. there is no significant difference between the categories of age.358 0. The study has implications to web retailers.096 93) ¼ 0.05 As seen in the Table VI.05. no. The categories in technical profile showed no significant difference due to less diversity of age and mere student representation. Higher quality orientation will lead to higher customer online purchase intention Outcomes Supported Supported Supported Not supported Not supported 28 Table V. This finding is consistent with Li et al.852 90) ¼ 1. (1999) which concluded that males shop online more than females. education level. Summary of the hypothesis and outcomes Impulse purchase orientation Brand orientation Quality orientation Source Demographic profile Table VI. Managerial implications This research establishes that impulse purchase orientation. Higher brand orientation will lead to higher customer online purchase intention H5. One way ANOVA results summary of demographics on online purchase intention Technical profile Variable Gender Age Education No. Only gender is found to have a significant p-value of less than 0. Web retailers and internet marketers specifically will be able to develop effective and efficient web-shopping strategies to attract new and potential web-shopping customers if they know the determinants of purchase intention. Targeting the impulse purchase orientation nature of Indian consumers. of hours of internet use per day and possession of credit card or netbanking facility. education level. internet marketers.082 91) ¼ 2. F(1. 93) ¼ 5. Higher consumer online trust will lead to higher customer online purchase intention H2. Age and education had just two categories which were not uniformly distributed. 0. F(3.219 Significance 0. This difference in the effect of demographics between Indian and Western online users may be explained.091 Note: Significant at: *p . So we can establish that males shop online more than females in an Indian context.596 0. age. online vendors and web-shoppers in India. prior online purchase experience and online trust have significant impact on the customer purchase intention. of hours of internet use per day and possession of credit card or netbanking was found to be significant.

Males have more intention to shop online could be utilized well by the online retailers by promoting more products and related advertisements targeting males in the population.in/state-of-the-internet-in-india-report-by-comscore-report/ (accessed 1 November 2011).iamwire.pdf (accessed 1 November 2011). the research has its own limitations. at least on a broader level.ece (accessed 1 December 2011). 3. etc. web retailers in India too should focus on increasing the online trust. www.htm (accessed 1 November 2011). cash on delivery payment option and effective 24 £ 7 customer care call center to address complaints. Hence the finding may not be generalizable though internet savvy students contribute to a major percentage of online shoppers in India.imediaconnection.economist. 9.com/documents/file58645. 2. convenience orientation. 11. www. Limitations and recommendation for future research Though the findings offer some new insights in an Indian context.loyalty in using the web site for purchase. www. The reason why quality and brand orientation is insignificant in India. A bigger and more representative sample which includes respondents from all walks of life would have been more appropriate.scribd.thehindubusinessline.html (accessed 1 June 2012). www. As cited by prior researchers. 4. www. www.indiasocial. 10. 7. www. www. In future studies.internetworldstats. There was no uniform representation across categories in the demographic variables considered for the study.com/2012/04/india-to-be-the-fastest-growing-e-commerce-market-in-asiapacific-market-set-to-grow-to-8-8-billion-by-2016/ (accessed 1 June 2012). E-tailers in India are competing with promotional pricing offers more than ever before. 8. This can be done by various online trust building measures like giving 30 day money-back guarantee on products bought online. IAMAI stands for “Internet and Mobile Association of India”. Determinants of purchase intention 29 . on time delivery. The reason why some Indians who have access to credit card and netbanking facility shy away from online retail shopping also needs investigation.bcg. Notes 1.com/top20. sample should be chosen so that there is uniform representation across categories in the demographic variables.com/india/news/irctc-becomeslargest-contributor-to-e-commerce/ 353951/ (accessed on 1 November 2011). www.in/article/920/Research/report-indian-e-commerce-market-may-hitusd-260bn-mark-by-2025. The responses with prior online purchase experience are analyzed while leaving those who have no online purchase experience.com/blogs/schumpeter/2012/04/e-commerce-india (accessed 1 June 2012).com/industry-and-economy/info-tech/article2606518. needs to be studied by introducing new constructs like value price. The online retailers should also have truthful and authentic information about products sold through their site all the time. The convenience sample of 95 MBA graduates may not be representative.com/doc/62145224/Report-on-Online-Commerce-March-2011-By-IAMAI (accessed 1 November 2011). 5.business-standard. IMF stands for “International Monetary Fund”. 6.

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