INDEPENDENT UNIVERSITY, BANGLADESH

School of Business

Business Research Method

Consumer Behavior on Cashback of BKash in

Bangladesh

Submitted By:
Nishat Tamanna Easha
ID: 16 30610
Md.Sujon Mahmud
ID: 1531049

Submitted To:
Dr. Nadim Jahangir
Professor
School of Business
September 28, 2019
Letter of Transmittal
To,
Dr. Nadim Jahangir
Professor
Independent University, Bangladesh

Subject: Submission of Business research report: Consumer Behavior on Cashback of BKash

in Bangladesh

Dear Sir,
With due respect, we would like to inform you that we are submitting our Business research
report on Consumer Behavior on Cashback of BKash in Bangladesh. The research report on
Consumer Behavior on Cashback of BKash in Bangladesh help us to understand the practical
activities of Cash back system.
We have tried my best to imply the concepts that we have learned throughout our academic
life along with the actual experience gathered while working on the actual environment.
We will be highly encouraged if you receive our report and grateful to you for your relentless
guidance which helped for completion of my report. Thank you for your kind and helpful
cooperation in directing us as to how to prepare this report.

Sincerely
Nishat Tamanna Easha
ID: 16 30610
Md.Sujon Mahmud
ID: 1531049
Contents
Abstract.................................................................................................................................................1
Chapter 1: Introduction.........................................................................................................................2
1.1 Research Background..................................................................................................................2
1.2 BKash...........................................................................................................................................3
1.3 Problem Statement......................................................................................................................4
1.4 Research Objective......................................................................................................................4
1.5 Research Question.......................................................................................................................5
1.6 Hypothesis...................................................................................................................................5
Chapter 2: Literature Review.................................................................................................................5
2.1 Consumer Behavior.....................................................................................................................5
2.2 Consumer Diversification.............................................................................................................6
2.3 Perceived Value...........................................................................................................................6
2.4 Privacy and Security.....................................................................................................................7
2.5 Economic Benefit.........................................................................................................................7
2.6 Conceptual Framework................................................................................................................8
Chapter 3: Methodology.......................................................................................................................9
3.1 Research design...........................................................................................................................9
3.2 Area of study.............................................................................................................................10
3.3 Sources of data collection..........................................................................................................10
3.4 Data Collection Procedure.........................................................................................................10
3.5 Sample Size................................................................................................................................10
3.6 Data Analysis Tools....................................................................................................................10
3.7 Pilot Testing...............................................................................................................................10
Chapter 4: Data Analysis......................................................................................................................11
4.1 Reliability Test............................................................................................................................11
4.2 Descriptive Test (Consumer Behavior on Cash Back of Bikash)..................................................12
4.3 Correlation Test (Relationship between Consumer Behavior on Cash Back and Behavior
Determinants)..................................................................................................................................12
4.4 Regression Test (Consumer Behavior on Cash Back of BKash)...................................................13
4.5 Summary of Findings.................................................................................................................14
Chapter 5: Conclusion and Implications..............................................................................................15
References...........................................................................................................................................17
A PPENDIX..............................................................................................................................................19
 Abstract

Customer loyalty is an important issue for the success and sustainability of an online
business. Moreover, the concept of affiliate marketing online business has become well-
known among online shoppers in the past several years. Nevertheless, there is little research
investigating customer loyalty towards affiliate marketing websites, especially in Bangladesh,
where this kind of websites are known as ‘cash-back website’. Therefore, this research
investigates customer loyalty towards cash-back of Bkash in Bangladesh. Based on previous
studies and interview, this research applies four factors (Consumption Diversification,
Perceived Value, Privacy and Security and Economic Benefit) as consumer behavior in
Bangladesh. This study aims to find out which factors in cash-back websites can influence
consumer behavior of Bkash. In this research, questionnaires are sent to cash-back website
users to collect quantitative data. A statistical analysis is used to verify the nine hypotheses to
analyze the collected data. The result points to four factors that will understand the consumer
behavior of Bkash in Bangladesh.

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 Chapter 1: Introduction

Many tools to boost sales are available. Price promotion is the main one. The voucher and the
mail-in rebate are a common method of price promotion. Mail-in rebates (hereafter
discounts), also known as the "cashbacks" or simply as the "rebates," are post purchase
discounts with firmly attached strings. The refund is distinct from coupons in that both after
and before purchasing the effort needed to acquire the discount and to collect it themselves.
Consumers must fill out the refund redemption form, obtain the appropriate evidence of their
purchase products and apply the full package so they arrive before the expiration date (such
as box bar numbers, serial numbers, sales receipt). The refund checks can take up to 14
weeks to arrive (Grow and Chhatwal, 2005), provided they satisfy all conditions and the
discount request has been approved. Offers for discount products are on the increase,
particularly for computer products (Chuang, 2004). Despite repeated concerns from
customers about not obtaining discount coupons, lengthy waiting periods for refunds, rigid
requirements to apply and additional attempts to reclaim them (Chuang, 2004, Ploskina,
2008, Ross, 2010, Ewoldt, 2010). They are also popular with producers. They can be used to
decrease the price and boost sales of a commodity while reducing the number of discount
buyers (Greenman, 1999). Around a third of customers said that they had purchased a
technology product and a discount over the past six months, according to an online survey by
the market research company The NPD Group in November 2004 (NPD, 2005). They predict
that every year there will be 400 million discounts, totaling 6 billion dollars. Staples Inc., the
Office Furniture Company, reported to have charged $3.5 million in weekly discounts with
its vendors (Grow and Chhatwal, 2005). Offers for rebate are not limited to a few dollars any
more. Popular experiences can be sold at $50, $100 or more for high tech goods (Dalton,
2005). Rebate deals are appealing for customers because they offer a decrease in rates that is
often significant. The assumption that 17 percent of the 6,800 adults surveyed have bought
more costly goods because of discounts is reinforced by an NPD community study. The
survey also found that, because of an offers promotion, 21% purchased a product earlier than
expected, and 9% of adults would buy product s without get offers for discounts (NPD,
2005).
1.1 Research Background
A buyer's comportment study in response to rebate promotions could increase the sales of an
item by 20–5%, depending on their offer value, promotion time and size (Menzies, 2005).

2
Yet, despite their success, reimbursements have been criticized by customers, media and
regulators, as significant numbers of customers are simply not compensated by the
reimbursement deal. This is widely considered a "broken" phenomenon. Chuang (2004)
noted that 40% of discount forms were never mailed and a further 20% of discounts were
rejected, respectively. Dalton (2005) cited a study that showed that 50 percent of respondents
did not even try to sell a discount on a product that they bought. About 41% who skipped the
discounts failed to settle it. The redemption forms, receipts or product barcodes were lost in
one quarter of the survey example. The reimbursement was not worth 20%, and another 14%
thought the reimbursement method was too complex. The discounts include a couple of other
advantages. In comparison to a trade agreement, a price discount incentive allows a supplier
to guide the overall discount to customers. For sales deals, retailers are prohibited from
offering consumers the full price cut (Neslin, 2002, Ailawadi et al., 2009). In addition,
retailers are unlikely to store inventories with discounts and sell the product at elevated prices
as product demand increases (Ault, 2000). Furthermore, rebate forms help producers get the
contact details from their commodity purchasers. For subsequent survey contacts or direct
marketing campaigns, manufacturers may use this information. Despite the prevalence of
discounts, only a few research studies studied customer Behaviour. Particularly noteworthy is
the fact that most of these current discount studies are dated, 10, 15 and some 20 years old.
Although many advances in sales promotions, particularly online, have been ignored by
researchers. Actually, Neslin (2002, p.67) states that discounts are ... a much-discovered
region. Researchers like, Tat and Schwepker Jr (1998) explored the motivations of redeeming
rebates and found that price awareness, time and effort are being made to redeem and that
they are satisfied with redeeming, effect redeeming and exploring. Others also analyzed
optimal compensation rates for suppliers (Ali et al., 1994)
Offering discounts (Hunt et. al. 1995), customer satisfaction with the reimbursement process
and customer analysis of reimbursement processes (Jolson et al. 1995 and the reimbursement
of the redemption process by user Jolson et al. 1988).
1.2 BKash
BKash Limited is a subsidiary from BRAC Bank. It was first originated in 2010 as a joint
venture between BRAC Bank Limited, Bangladesh and Money in Motion LLC, USA. In
April 2013, International Finance Corporation (IFC) became an equity partner who is a
member of the World Bank Group. Bill & Melinda Gates Foundation became the investor of
the company in April 2014. BKash Limited is following the great objective to ensure the
access towards a broader range of financial services for the general people of Bangladesh. It

3
focused to serve the low-income general people of the country by providing services that are
reliable, convenient and affordable. More than 70 people among each 100 of the population
of the country live in rural areas where access of the formal financial services is difficult. But
these are the people mostly in need of such services, either for receiving funds from family
members in distant locations, or to access financial tools in order to improve their economic
condition. Less than 15% of Bangladeshis are connected to the formal banking system
whereas over 68% have mobile phones. These phones are not only devices for talking, but
can be and should be used for more useful and sophisticated processing tasks. BKash was
conceived primarily to utilize these devices and telecom networks to extend financial services
in a secure manner to the remote general masses of Bangladesh. BKash possesses the highest
number of agent country wide which is more than 160,000 in number who are serving
continuously each and every service that BKash offers.

1.3 Problem Statement

Many online retailers have begun to search for new ways to raise their market share and meet
target customers (Yao, 2011). Chen Shousong has found that many key sellers, such as
Taobao.com and 360Buys.com which have joined the CAB web site, are becoming more and
more popular. This gives other players little space in the online market. Earlier research has
shown that those using cash-back incentives due to the cost shift for consumers are actually
the most common type of loyalty programs (Capizzi and Ferguson, 2005; Jang and Mattila,
2005). Such commercial ties in the area of affiliate marketing have been alluded to in other
research (Benediktova and Nevosad, 2008; Duffy, 2005). In this study the current researchers
will investigate Consumption Diversification, Perceived Value, Privacy and Security and
Economic Benefit in relation to Consumer Behavior on Cash Back of BKash in context of
Bangladesh.

1.4 Research Objective

The turning mode of traditional shops to online stores and low entrant barriers bring the
intensive competition to the online market. For companies that have already invested and
participated in cash-back websites, understanding the customer’s perception and the factors
that affect their loyalty is necessary information to develop greater marketing strategies to
convert potential customers to active ones. From a multinational standpoint, if companies are
able to understand the Bangladeshi consumer behavior in purchasing online products, this can
increase the likelihood of success. The purpose of this research is to identify the key factors

4
influencing Bangladeshi consumers’ perception in online shopping that can lead to loyalty.
The specific objectives of this research are:

1.5 Research Question

1. How does Consumption Diversification affect to consumer behavior of cashback in context
of bKiash.
2. How does Perceived Value affect to consumer behavior of cashback in context of bKiash.
3. How does Privacy and Security affect to consumer behavior of cashback in context of
bKiash.
4. How does Economic Benefit affect to consumer behavior of cashback in context of bKiash.
1.6 Hypothesis
1. Consumption Diversification have significant influence to consumer behavior of cashback
websites in Bangladesh.
2. Perceived Value has positive effect on consumer behavior of cashback websites in
Bangladesh.
3. There is a positive relationship between privacy and security and consumer behavior of
cashback websites in Bangladesh.
4. Economic benefit have significant influence to consumer behavior of cashback websites in
Bangladesh.

Chapter 2: Literature Review

2.1 Consumer Behavior

Khouja et al. (2008b) developed a model to determine the optimal price and rebate value for a
manufacturer. They determined consumers fell into two categories, rebate dependent and
rebate independent. Rebate-Independent (RI) consumers, unaffected by rebates, constitute the
base sales level and do not redeem. This group is similar in some respects to the product-
involved consumer. The presence of rebate has no effect on their decision to purchase, they
do not intend to redeem, and they would purchase with or without a rebate.
It is, however, problematic to assume this group will never redeem. Certainly, the rebate may
not affect their decision-making, but if faced with a post-purchase opportunity to redeem they
could still choose to do so. Perhaps they are encouraged to do so by family/friends. Perhaps
they stumble across the rebate form during a time of relative inactivity. Perhaps they are

5
unhappy with the purchase experience and want to exact some measure of revenge (i.e., a
backlash effect). Perhaps they lose their job, increasing their marginal utility for money –
they may elect to redeem. Whatever the impetus, nothing prevents the RI consumer from
redeeming.
Rebate-Dependent consumers, on the other hand, are similar to the purchase involved
consumer and can be either fully or partially rebate-dependent. Fully Rebate-Dependent
(FRD) consumers are price sensitive and will always redeem. Partially Rebate- Dependent
(PRD) consumers are most likely to be enticed by a rebate to purchase but their redemption
rate is less certain than FRD consumers. Khouja et al. (2008) model makes three predictions.
Firstly, for PRD consumers the larger the gap between the rebate value and the time/effort
cost the more profitable the rebate programme will be. This is because the more attractive the
differential appears the more PRD consumers will be enticed to buy, and the more likely
breakage occurs.
Secondly, the greater the rebate attractiveness (defined as the increased demand from a
$1.00 increase in rebate value versus the increased demand from a $1.00 decrease in price)
the greater the increase in profit. Finally, the larger the proportion of consumers in the PRD
group the larger the programmer’s potential profit.
2.2 Consumer Diversification
The combination of regulatory reform, consumer service and promote innovation and
technological change has dramatically altered the whole world. They have become bigger,
operate in more markets, offer more products, and exhibit a more diversified stream of
revenue. Cashback system now engage in a broad range of financial activities like
securities underwriting, insurance underwriting, and merchant banking, and income
from activities that generate noninterest income accounting for over 14% on an average of
net operating revenue for the industry. The business model of the cashback websites works
as an affiliate
Model, where both the recommender and the referee benefit from the referee's transactions in
the network (up to the second degree: affiliates and the affiliates of the affiliates). This
system implies that customers financially benefit from the transactions made by themselves
and their network of affiliates. Transactions of type click/visit and search generate cashback
without making a financial outlay by the user, conversely to the purchase type or others,
which usually requires the acquisition of a product or service. In this situation, and as Zaglia
(2013) points out, the interaction among consumers reinforces the use of the brand, which in

6
the current model allows testing the relationship between the size of the consumer network
and the benefits of cashback, because these benefits come mainly from customer activity.
2.3 Perceived Value
Customer expectations are a part of their beliefs about a product or service that provided to
meet the standards or reference points (Olson and Dover, 1979). Customers’ service
expectation can be classified from five dimensions: reliability, tangibles, responsiveness,
assurance, and empathy. Reliability is the more important in service outcome, whereas,
tangibles, responsiveness, assurance and empathy are more related to the service process.
Reliability is classified as the most important dimension in meeting customers’ expectations,
the factors influencing process dimensions (especially assurance, responsive and empathy)
are most important in exceeding customer expectations (Zeithaml et al., 1991).
Customers have expectations of many attributes. However, online shopping offers fast and
accuracy in order to fulfillment, reasonable price, and high level of customer service and
website function (Ang and Buttle, 2009). There is also the convenience of accessing
electronics cash such as online banking processes in the payment function through credit or
debit card. The research revealed that 88% of customers have positive or neutral perception
of cash-back offers. Cash back for marketers can be valuable and some companies use
rebates as not only a promotional tool, but also the leading source of opt-in emails and
customer preference data. Rebates are a great way to drive sales and urgency, and start to
communicate with customers for retention, loyalty and referrals (Parago, 2013). In addition,
there are rebate or cash-back which refunds cash to customers after purchase. Customer will
perceive the price of its product as a discount or cheaper than normal (Gopal et al., 2006).
2.4 Privacy and Security
Privacy and security are key criteria in evaluating online service. However, these two related
factors have been distinguished from each other. Privacy involves the protection of personal
information by not sharing personal data collected from customers with other sites (as in
selling list), protecting anonymity and providing informed consent (Friedman et al., 2000)
Whereas, security refers to protect the user from the risk of fraud and financial loss from the
use of credit card or other financial information. Most online consumers are concerned about
perceived lack of security from those websites which do not provide clear and prominent
statements about privacy and security matters (Yang et al., 2004).
2.5 Economic Benefit
Economic Benefit is among the most important and widely studied areas of marketing
scholarship (e.g.,Bijmolt et al. 2005, Tellis 1988). A large body of literature suggests that

7
consumers’ overall assessment of the value of a good or service is based on their perceptions
of what is received versus what is given up (Zeithaml1988). Therefore, perceived value,
commonly defined as the ratio of the perceived benefits of the product to the perceived
sacrifice in acquiring them (Lam et al. 2004), is positively influenced by benefits and
negatively influenced by price (Woodruff 1997, Zeithaml 1988).An implicit assumption is
that the higher the perceived benefits of a product, the higher the consumer’s will-ingress to
pay (WTP), albeit constrained by budget or competitive forces (e.g., McFadden 1986,
Zeithaml1988). Price sensitive customers see a sizeable drop in the value of a service for a
given increase in price.

2.6 Conceptual Framework

The main purpose of the study is to understand the patient satisfaction of service quality of
square hospital. A research philosophy is the key element of for viewing world of study.
Therefore Philosophical assumption helps to determine the research strategy and method for
the study.

Consumption
Diversification

Perceived Consumer
Value Behavior on
Cash Back of
Bikash
Privacy and
Security

Economic
Benefit

8
 Chapter 3: Methodology

Research methodology known as a scientific and systematic way to solve a problem. The
researcher follow the research methodology system to analyzing, exploring, describing
predicting and suggesting on a study (Rajasekar, Philominathan and Chinnathambi 2013).
The research explanation will be based on previous theory which will helps to solve the
problem and identify new knowledge through the onion model which was introduced by
Saunders, Lewis and Thornhill (2009). This segment of the study have analysed to list out the
various steps which will help to understand the determinants of real estate development.
What will be the research design, what will be the data collection method, what particular
method has been adopted, what will be the specific model and analysing technique that helps
the researcher to gather deeper knowledge? In this chapter researcher could find out various
determinants of real estate development to analyse the phase and reason behind to adopt the
determinants. In this part of the research the choices and decisions have made totally
consideration on basing the literature review which has mentioned in the previous chapter.
Literature review will indicate which procedures and methods will be appropriate for the
study by analysing others research and easily can find out the previous problem, which they
have faced. It will also allow to determines the better position for selecting better
methodology which will guided to capable of providing better and valid answer for research
question. By onion model a researcher can understand the every step of the research
approaches towards. The research design, data collection methods, data processing, and
methods of data analysis will be discussed here.

3.1 Research design

Research design helps researcher to design the fundamental directions to analyse and carryout
the specific studies. The study is based on exploratory and quantitative research. An
exploratory research explain a certain problem faced by the researcher and investigate by pre
planed research design to discover result. According Kumar (2005) to show current position,

9
descriptive research identify and verified the extended hypothesis. It is a scientific method to
describe the behavior but not to control it any way. In descriptive research gathered the data,
put in a table, analyze it and present the pictures of the data collection. The study is mainly
focused on exploratory study which is important for obtaining a good grasp of the phenomena
of interest and for advancing knowledge through good theory building and hypothesis testing.
Consumer Behavior on Cash Back of BKash will be measured by the level of Consumption
Diversification, Perceived Value, Privacy and Security and Economic Benefit. The data have
been gathered through online and face to face survey around fifty (50) respondent, whom are
basically use BKash app.
3.2 Area of study
The sample will select from the various respondent consumer whom are using BKash app
frequently. The respondent must be use BKash app and have knowledge that different cash
back offers are providing by BKash and have assure that the respondent provide bias less
feedback to the questionnaire.
3.3 Sources of data collection
A primary data were collected by means of a structured, comprehensive questionnaire that
was developed by the researcher based on the literature review on the relevant topics.
Questionnaire Source data will be follow some certain rules -
The information of the respondent will be keep secret.
The survey on 50 respondent is not possible to conduct by face to face interview, so that the
study also concentrate on online surveys.
3.4 Data Collection Procedure
The data will be collected through survey questionnaires by interview in person and google
online survey. The questionnaire will follow the likert scale system to survey.
3.5 Sample Size
The sample size of the study is around 50 respondent which are collected by survey from
different area of Dhaka city. Most of the consumer uses the BKash services frequently.
3.6 Data Analysis Tools
For the data analysis the study will use SPSS software to understand the reliability, validity
and for in-depth investigation correlation and regression analysis have been conducted to
analyse, the independent variable contributes more to the dependent variables.
3.7 Pilot Testing
The purpose of pilot testing was to establish a common understanding of the tools by the
research team and to determine the approximate time required to complete one study tool for

10
purposes of ascertaining clarity and objectivity of questions. Here the study tested randomly
20 respondent to understand the reliability of the data.

Chapter 4: Data Analysis

4.1 Reliability Test
Reliability is the quality of a measurement procedure to provide repeatability and accuracy. A
construct is said to be reliable if it brings the same result when we use it multiple times
(Bhattacherjee 2012). Cronbach’s alpha is a coefficient of reliability used to measure the
internal consistency of a test or scale. For internal reliability (consistency of the research
instrument), reliability test for all service quality dimensions was done. Therefore, the overall
reliability of the scale was found to be 0.894 (Table 1) which indicates the acceptability of
the items. Moreover, the scale consistency of each dimensions adapted from the combination
of service quality dimensions of Consumption Diversification, Perceived Value, Privacy and
Security and Economic Benefit were also computed with the value of 0.818, 0.8814, 0.792,
0.801 and 0.756 as the analysis in the table 1.

Reliability Statistics

Cronbach's
Alpha N of Items

.894 5

Item Statistics

Mean Std. Deviation N

Consumption Diversification 3.940 .8184 50

Perceived Value 3.784 .8814 50
Privacy and Security 3.980 .7972 50
Economic Benefit 3.900 .8013 50
Consumer Behavior on Cash
3.932 .7566 50
Back

Item-Total Statistics

11
 Cronbach's
Scale Mean if Scale Variance Corrected Item- Alpha if Item
Item Deleted if Item Deleted Total Correlation Deleted

Consumption Diversification 15.596 7.624 .724 .874

Perceived Value 15.752 7.114 .781 .861
Privacy and Security 15.556 7.863 .686 .882
Economic Benefit 15.636 7.446 .795 .858
Consumer Behavior on Cash
15.604 7.944 .715 .876
Back

Table 1: Reliability Analysis (Cronbach’s Alpha) Source: Survey Result 2020

4.2 Descriptive Test (Consumer Behavior on Cash Back of Bikash)
Respondent’s perception towards various Consumer Behavior on Cash Back is measured
through four behavior dimensions. Respondent’s perception towards overall consumer
behavior and their satisfaction level also measured using their mean score. Table 2 shows
respondent’s perception towards Consumer Behavior dimensions, overall consumer behavior.

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Consumption Diversification 50 1.4 5.0 3.940 .8184
Perceived Value 50 1.6 5.0 3.784 .8814
Privacy and Security 50 1.8 5.0 3.980 .7972
Economic Benefit 50 1.8 5.0 3.900 .8013
Consumer Behavior on Cash
50 1.8 5.0 3.932 .7566
Back
Valid N (list wise) 50

Table 2: Descriptive Analysis (Consumer Behavior on Cash Back of BKash) Source: Survey Result 2020.
According to table 2 perception of respondents on Privacy and Security and Consumption
Diversification is good compared to other consumer dimensions which have mean score of
3.98 and 3.94 respectively. Perceived Value of the consumer behavior have least perception
of 3.78. Economic Benefit has moderate perception with mean score of 3.78. From the
analysis the study clearly showed that the consumer are more satisfied on to the Privacy and
security of BKash. It is clearly shows that the satisfaction on Privacy and Security of BKash
app services.
4.3 Correlation Test (Relationship between Consumer Behavior on Cash
Back and Behavior Determinants).
Correlation analysis is used to assess the relationship consumer behavior dimensions overall
and consumer perception on Cash Back website of Bikash. Correlation analysis deal with
relationships among variable and helps to gain insight in to the direction and significance of
relation between the variables. Correlation coefficient take values between -1 and 1 ranging
from being negatively correlated (-1) to uncorrelated (0) to positively correlated (1).
12
According to Dancey and Reidy(2004), a correlation result which is 0 indicates zero
correlation , a result between 0.1 to 0.3 indicates weak correlation, a result which is between
0.4 to 0.6 indicates moderate correlation and a correlation coefficient between 0.7 to 0.9
indicates a strong correlation and a result which is equal to 1 indicates perfect correlation.
Correlation analysis was undertaken to discuss the relationship between consumer behavior
dimensions and intension of using cash back service of BKash. In the Table 3 all consumer
behavior dimensions and perception on consumer intension for cash back of BKash have
positive and significant relationship.

Correlations

Consumption Privacy and Economic

Diversification Perceived Value Security Benefit

Consumption Diversification Pearson Correlation 1 .767** .611** .577**

Sig. (2-tailed) .000 .000 .000

N 50 50 50 50
** **
Perceived Value Pearson Correlation .767 1 .698 .630**

Sig. (2-tailed) .000 .000 .000

N 50 50 50 50

Privacy and Security Pearson Correlation .611** .698** 1 .539**

Sig. (2-tailed) .000 .000 .000

N 50 50 50 50

Economic Benefit Pearson Correlation .577** .630** .539** 1

Sig. (2-tailed) .000 .000 .000

N 50 50 50 50

**. Correlation is significant at the 0.01 level (2-tailed).

Table 3: Correlation Analysis (Relationship among Consumer Behavior Dimension) Source: Survey
Result 2020.

Table 3 shows the relationship among service quality dimensions, over all service quality and
customer satisfaction. As the table shows, all service quality dimensions have positive and
significant relationship with overall consumer variables determinants even though their
correlation is different among service quality dimensions. Consumption Diversification and
Perceived Value have better relationship with patient satisfaction with strong coefficient
value .767 respectively followed by Economic Benefit and Privacy and Safety of .611 and .
577 of correlation coefficient value. There is a positive correlation between all service
quality dimensions and overall Consumer Behavior on Cash Back of BKash.

13
4.4 Regression Test (Consumer Behavior on Cash Back of BKash)
Linear regressions analysis was applied again to assess the impact of service quality
dimensions on customer satisfaction. Table 4 shows the SPSS result of the analysis

Model Summary

Change Statistics

R Adjusted R Std. Error of R Square F Sig. F

Model R Square Square the Estimate Change Change df1 df2 Change

1 .948a .898 .889 .2524 .898 98.787 4 45 .000

a. Predictors: (Constant), Economic Benefit, Privacy and Security, Consumption Diversification, Perceived Value

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .506 .214 2.369 .022

Consumption Diversification .016 .071 .018 .231 .818

Perceived Value .13 .074 .146 1.686 .099

Privacy and Security .063 .065 .673 .975 .335

Economic Benefit .952 .060 .710 15.943 .000

a. Dependent Variable: Consumer Behavior on Cash Back

Table 4: Linear Regression analyses. Source: Survey Result 2020.

As the value of R squared shows (Table 4), in aggregate the dependent variable (Patient’s
satisfaction) is explained (impacted) by all independent variables (Consumption
Diversification, Perceived Value, Privacy and Security and Economic Benefit) by 89% which
shows the evaluation of the model. This R square is not over estimated while evaluating the
model’s fitness as its variation from adjusted R square is very near which is 88%. In
evaluating each independent variables impact on dependent variable (Consumer Behavior),
the table shows Consumption Diversification, Perceived Value, Privacy and Security and
Economic Benefit have significant impact on Consumer Behavior on Cash back of BKash.
The magnitudes of the impact coefficient β values are also positive for all independent
variables except one. Economic Benefit has high impact with value of β = 0.71 on consumer
behavior followed by Privacy and Safety compared to other variables on .710.
14
4.5 Summary of Findings

1. The main objective of the study was to assess the overall customer behavior on Cash Back
Service in Bikash and to investigate the impact of the dimensions on consumer perception. In
this study hypothesis were also developed to investigate how consumer behavior dimensions
can effect on cash back of BKash.
2. To meet this objective quantitative research strategy was adopted and Probabilistic
sampling technique with stratified random sampling methods was used to collect quantitative
data from various consumer of BKash app, who have used BKash frequently.
3. Descriptive statistics like frequency, mean and correlation analysis techniques were
applied to analyze background information of respondents, to analyze respondent’s
perception of consumer behavior between behavior dimensions. In addition, inferential like
regression analysis techniques were used.
4. The study revealed different findings. From the background information of the respondents
more than everyone have used BKash app.
5. Mean score comparison was also conducted to evaluate consumer behavior on cash back of
BKash.
6. Correlation coefficient statistics shows that Responsiveness and Reliability consumer
behavior have strong and significant relationship with overall factors.
7. Finally, the hypotheses developed in this study were tested and the result shows that all
behavior dimensions have significant and positive impact on sash back of BKash.

Chapter 5: Conclusion and Implications

In this study, we examined how cashback payments affect consumer purchase behavior. We
found two main results. First, cashback payments shorten the time consumers take to make
additional purchases via the website of the cashback company. Second, cashback payments
increase the size of these purchases. Specifically, at the average values in the data, increasing
cashback payment by $1.00 increases the probability of a new transaction by .02% and
spending by $.32. These figures represent 10.03% of the overall impact of a given promotion.
The finding that consumers are susceptible not only to the promise of a saving but also to the
later payment of that saving is surprising, as they are free to spend the money in any manner

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they choose or to set it aside. It is also surprising when we consider that cashback payments
are depends on perceived value, these payments should not influence purchase behavior in
any product category, with any retailer, or through any intermediary in a meaningful way.
Regardless, one possible explanation is that consumers ultimately fail to treat money as a
diversification resource. The data lend support to this argument, as we observe consumption
diversification relationship between the consumer behavior on cash back of BKash and their
marginal effect on spending. We examine the effect of cash back that are depend on privacy
and security and conditional on a purchase security and privacy of a consumer. Second,
cashback payments have no usage on perceived value as the concept is fresh and still
Bangladesh is way ahead of being cashless or have app dependency ; this is important
because consumers spend (again) through the cashback company money that, at least in
principle, is electronical base. Third, consumers respond to economic benefit and willing to
spend on cash back offer through BKash.
Cash-back culture of BKash have developed rapidly in recent. The numbers of consumer and
sales amount of the leading company BKash have increased constantly, while some other E-
commerce website with same services have been growing slowly. Therefore, it is very
important to find out customer’s perspective towards cash-back websites. This paper is aimed
to study those factors influencing customer perception on BKash app. The empirical data are
carried from a survey research in Bangladesh whom are using BKash. There is no sufficient
factor towards consumer behavior in cash-back of BKash. Managers should always seek
suitable strategies to stay competitive in online shopping industry.

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 APPENDIX
Appendix 1: Questionnaire: Service Quality Survey
Dear Respondent
For this questionnaire survey we need your cooperation. This survey tries to find out the
service quality of today’s Healthcare/Hospital in Dhaka City by determining overall patient’s
satisfaction. This survey is for research purpose and never reveals any identification of the
surveyor. Your cooperation in this regard may help us to enhance our knowledge with
exciting finding and insights. Thank you very much for your valuable time. Have a good day!

Choose the best Answer and put tick (√) from Part A to Part B.

PART - A
Demographic Factors

1. Male Female

2. Age: 3. Income:
20-30 years 20000 and Less Taka
31 – 40 years 20000 – 30000 Taka
41-50 years 31000-40000 Taka
51 – 60 years 41000-50000 Taka
61 years above 50000 and above

4. Frequently visit Hospital: 5. Which hospital did you visit?

Once in a month
Once in a three month
Twice in month
Once in a year
Not visited this year
PART - B
1. Consumption Diversification

No Items Strongly Disagree Neutral Agree Strongly

disagree agree
1 When I get cash-back, I feel that am I getting a
good deal.

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2 I am more likely to buy products from the cash-
back website than directly buy product from
retailers’ website.
3 Cash-back promotions have caused me to buy
products I normally would not buy.

4 I think customers of this website are not strongly

affiliated with one another.
5 This website design is attractive to me.

2. Perceived Value

No Items Strongly Disagree Neutral Agree Strongly

disagree agree
1 Considering what I pay, I will get much more than
the worth of my time, effort and money.
2 Based on simultaneous considerations of what I
received and what I give up, I consider this
purchase to be valuable.
3 I am satisfied with my decision to use Bkash for
redirecting to retailer’s

4 I prefer to share experiences about the

website/product online with other customers of the
website
5 I am willing to say positive things of cash-back
website to others.

3. Privacy and Safety

No Items Strongly Disagree Neutral Agree Strongly

disagree agree
1 I felt secure in providing sensitive information
(e.g. credit card number) for online transactions
2 The company will not misuse my personal
information.
3 In my experience this Cash-back Website is very
reliable.
4 I felt the risk associated with online transactions is
low.
5 Bkash have the secure gateway to access the
payment in olnline.
2. Economic Benefit

No Items Strongly Disagree Neutral Agree Strongly

disagree agree
1 This Cash-back Website is interested in more than
just making a profit from us.
2 Comparing to alternative websites, Bikash offers
attractive refund

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3 Cash-back promotion makes me feel good.
4 Most of what this Cash-back Website says about
its service is true.
5 Comparing to alternative websites, this cash-back
website offers accurate price comparison engine.

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