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Antecedents of Online Shopping

Behavior in India: An Examination
a b
Arpit a Khare & Sapna Rakesh
a
Market ing Area, Indian Inst it ut e of Management , Roht ak, Roht ak,
Haryana, India
b
Depart ment of Management , Inst it ut e of Technology and Science,
Ghaziabad, India

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 Journal of Internet Commerce, 10:227–244, 2011
Copyright # Taylor & Francis Group, LLC
ISSN: 1533-2861 print=1533-287X online
DOI: 10.1080/15332861.2011.622691

Antecedents of Online Shopping Behavior in

India: An Examination

ARPITA KHARE
Marketing Area, Indian Institute of Management, Rohtak, Rohtak, Haryana, India

SAPNA RAKESH
Department of Management, Institute of Technology and Science, Ghaziabad, India
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The current research was undertaken to understand Indian

students’ intention to purchase through online shopping Web sites.
A survey of 325 students studying in Indian universities was
conducted. The results indicate that Indian students’ intention to
purchase online is influenced by utilitarian value, attitude toward
online shopping, availability of information, and hedonic values.
Male students have a more positive attitude toward online shopping
compared to female students.

KEYWORDS attitude toward online shopping, Indian students,

intention to purchase, online shopping, utilitarian and hedonic
values

INTRODUCTION

Expansion of the Internet has increased the popularity of electronic retail

channels. The changing demography of developing economies promises a
number of opportunities for Web-based retail models. Most companies are
exploiting the Internet as an alternative channel for reaching out to custo-
mers. As an emerging economy, India presents a potential market for
e-retailers. Understanding the online purchase intentions of the Indian mar-
ket can help online retailers in segmenting and targeting decisions. The cur-
rent research focuses on understanding the shopping behavior of Indian
students. Students present an attractive market segment as they a spend large

Address correspondence to Dr. Arpita Khare, IIM-Rohtak, Humanities Block, MDU

Campus, Rohtak, Haryana, India. E-mail: arpita.khare@iimrohtak.ac.in

227
 228 A. Khare and S. Rakesh

amount of time browsing the Internet and are familiar with the online
medium. There are 51 million active Internet users in India; 97% of which
are regular users while 79% are daily users (Juxtconsult.com 2010). Most
Internet users are between age groups 25–35 years. The Internet browsing
population in India is growing at an annual rate of 20%, which is expected
to touch 237 million by 2015 (The Economic Times 2010). Largely used by
youth, the Internet is fast catching up as an important media in the life of stu-
dents. The online gaming industry is US$5 million and expected to touch
US$446 million. It is expected to grow at a CAGR of over 36% through
2013 (KPMG Analysis 2009). The Internet has emerged as a popular media
for higher income groups covering 16% of media exposure (Juxt Indian
Urbanites 2010). The improvements in information technology and com-
munication network infrastructure coupled with psychographic changes
among students are bound to influence their purchase behavior and incli-
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nation to use the Internet for shopping.

There has been growing interest among researchers toward studying
online shopping behavior in developing countries (Park and Jun 2003; So,
Wong, and Sculli 2005; Martı́nez-López, Luna, and Martı́nez 2005; Haque
et al. 2007; Cho and Jialin 2008; Riley, Scarpi, and Manaresi 2009; Hashim,
Ghani, and Said 2009; Hasan 2010). The current research examines the role
of hedonic and utilitarian values, attitude toward online shopping, and infor-
mation availability on Indian youth’s intention to purchase online. Novak,
Hoffman, and Yung (2000) suggest that the nature of the Web site influences
customers’ online behavior. Engaging customers online requires presenting
them with challenging stimuli and excitement. If the Web sites do not
intrigue the customers, they will lose interest in them. The Web sites should
blend goal-directed and experiential qualities (Novak et al. 2000). In another
research, Ha and Stoel (2009) suggest that customers’ perception and attitude
toward e-shopping is governed by factors like usefulness, trust, and enjoy-
ment. Childers and colleagues (2001), in their research on hedonic and utili-
tarian aspects of online shopping, suggest that immersive, hedonic, and
utilitarian components of online medium influence customers’ online shop-
ping behavior. The utilitarian components facilitate access to information
about product features, prices, and promotional offers (Childers et al. 2001).
The research questions for this study were formulated as follows:

RQ1: Does Indian students’ intention to purchase online depend on

hedonic and utilitarian shopping values?
RQ2: Does Indian students’ online shopping attitude influence their
online purchase intention?
RQ3: Does availability of information affect Indian students online
purchase intention?
RQ4: Does gender of Indian students affect their online purchase
intention?
 Online Shopping Behavior in India 229

LITERATURE REVIEW

In their research on Malaysian customers’ shopping behavior, Haque and

colleagues (2007) found that the Internet marketing environment, product
characteristics, familiarity and confidence, and promotional offer influenced
their online shopping behavior. Alba and colleagues (1997) state that the
Internet has reduced product search costs. Zhou, Dai, and Zhang (2007)
identified nine types of consumer factors that affect online shopping—
demographics, Internet experience, normative beliefs, shopping orientation,
shopping motivation, personal traits, online experience, psychological
perception, and online shopping experience.

Attitude toward Online Shopping

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Riley and colleagues (2009) compared online shopping behavior of custo-

mers in Italy and the UK. Their results indicate that customers’ attitude
toward online shopping for services depends on familiarity with the service
provider and customers’ experience with the Internet. Monsuwé and collea-
gues (2004) state that customers’ attitudes toward online shopping was not
only affected by ease of use, usefulness, and enjoyment, but also by exogen-
ous factors like customer personality, situational factors, product characteris-
tics, earlier online shopping experiences, and trust in online shopping. Shih
(2004) posits that customers’ attitude toward online shopping is strongly cor-
related with Internet acceptance. The perceived ease of use and perceived
usefulness determine customers’ attitudes toward online shopping, however,
perceived usefulness did not affect user acceptance of online shopping
models. Bigné-Alcañiz and colleagues (2008) conducted research on Spanish
customers who had never purchased online. Their results indicate that online
shopping behavior can be improved if the Web sites are easy to navigate and
use. The customers’ ‘ease-of-use’ perception affects their attitude to shop
online.
Hsu and colleagues (2006) studied the theory of planned behavior
(TPB) and Expectation Disconfirmation Theory (EDT) to examine the ante-
cedents of customers’ intention to shop online. The results state that satisfac-
tion with online shopping depends on prior use of online shopping Web
sites. Customers fear that online shopping involves exchange of confidential
data. The security and confidentiality factors play a significant role in the use
of online shopping Web sites. Kim and Park (2005) suggest that customers’
use of online shopping Web sites is influenced by the attitude toward brick
and mortar store. Customers are willing to try the online model if they are
familiar with the brick and mortar store, and online Web sites are perceived
as an extension to the physical stores. In their research on Korean customers,
Park and Kim (2003) found that information quality, user interface quality,
 230 A. Khare and S. Rakesh

and security perceptions affected customers’ attitude toward online

shopping. Ahn, Ryu, and Han (2004) suggest that online and offline features
of stores have an effect on the perceived usefulness, attitude, and intention to
use the online shopping Web sites.

Hedonic and Utilitarian Shopping Motives

Childers and colleagues (2001) examined factors like usefulness, ease of use,
and enjoyment in predicting customers’ attitude toward online shopping.
Customers prefer enjoyment, interactivity, and flexibility in online media.
Their findings suggest that instrumental and hedonic aspects are important
in online purchases. The online Web site design characteristics are important
in providing intrinsic enjoyment to the customers. Babin and Attaway (2000)
found that online shopping Web sites encompassing both hedonic and utili-
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tarian aspects were perceived to generate greater shopping value and conse-
quently affected customers’ purchase behavior. Online shopping was
affected by Web site features that provide information about products, made
transactions easy, and combined the utilitarian aspects (Wolfinbargar and
Gilly 2001).
Mummalaneni (2005) found that pleasure and enjoyment are important
for customer satisfaction with online shopping. Bridges and Florsheim (2008)
suggest that increasing hedonic aspects on online Web sites does not neces-
sarily mean that customers would purchase online. Making the shopping
Web sites interactive and entertaining does not ensure online shopping
either. Web sites should be informative and easy to navigate. Online shop-
pers look for experiential, or hedonic, value through stimulation=arousal
and playfulness. They get utilitarian value if the Web sites are goal-focused,
convenient, accessible, and facilitate information availability. These factors
are associated with perceived ease of use, freedom, and control (Bridges
and Florsheim 2008).
Ganesh and colleagues (2010) examined online shopping motives and
e-store attributes in influencing customers’ online shopping behavior. The
results suggest that segmentation and marketing are as important in online
formats as they are in traditional formats. Research posits that online shop-
pers seek convenience and product information (Li, Ko, and Russell 1999;
Syzmanski and Hise 2000; Evanschitzky et al. 2004), which are related to utili-
tarian aspects. Ha and Stoel (2009) examined online shopping with factors
like enjoyment, Web site quality, and trust with respect to customers’ attitude
toward online shopping. Thus, customers’ online shopping behavior is influ-
enced by Web site features, appearance, display of images and pictures, and
not only on product experiences (Lohse and Spiller 1998). In the online
environment, enjoyment and interactivity were important in influencing cus-
tomers’ perceptions toward online shopping Web sites (Cronin, Brady, and
Hult 2000; Fiore and Jin 2003; Joines, Scherer, and Scheufele 2003; Grewal,
 Online Shopping Behavior in India 231

Lindsey-Mullikin, and Munger 2004; Gefen 2004; Fiore, Jin, and Kim 2005;
Overby and Lee 2006; Ha and Stoel 2009). As with physical stores, customers
expect enjoyment and excitement in online shopping Web sites (Hoffman
and Novak 1996; Mathwick, Malhotra, and Rigdon 2001; Kim 2002; Overby
and Lee 2006).
The utilitarian aspects are related to display quality, availability of infor-
mation, ease of use, and transaction convenience. Liu, Gao, and Xie (2008),
in their research on Chinese customers’ online shopping behavior, found
that information quality, Web site design, product information, transaction
facility=convenience, security=privacy, payment mode, delivery, and service
were important attributes to online shopping. Some researchers compare
utilitarian aspects with convenience and time-saving attributes of online
shopping (Teo 2001; Grewal et al. 2004; Overby and Lee 2006). Overby
and Lee (2006) found that utilitarian values were more important in online
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shopping Web sites as compared to hedonic values. Research suggests trust

as an important attribute in online shopping (Suh and Han 2002; Ha and Stoel
2009). Ha and Stoel (2009) state that customers give importance to trust=
safety, service, and experiential aspects of online shopping. To, Liao, and
Lin (2007) conducted research to understand the Internet shopping motives
with respect to utilitarian and hedonic shopping motives. The results
revealed that customers’ utilitarian motivation affects their intention to search
for information and to purchase. Considering the importance of hedonic and
utilitarian motives in shopping, it was assumed that Indian students’ online
shopping behavior would be influenced by these motives. The hedonic
motives have a direct impact on customers’ intention to search for infor-
mation and indirect impact on intention to purchase. The utilitarian motives
were related with convenience, cost-saving, and information availability fac-
tors. The hedonic motives were related to a sense of adventure, authority,
and excitement. In the online shopping environment, customers look for
convenience, flexibility, and usefulness. These were linked to the utilitarian
motives and affected purchase decisions.

Information Search
Research states that customers seek easy information accessibility through
online Web sites (Syzmanski and Hise 2000; Watchravesringkan and Shim
2003; Kim, Kim, and Kumar 2003; Seock and Norton 2007). Bigné-Alcañiz
and colleagues (2008) found that information availability improves custo-
mers’ perceptions about online Web sites. The ease-of-use facilitates custo-
mers’ willingness to use online shopping Web sites. Vazquez and Xu (2009)
posit that customers’ attitude, motivations, and information search behavior
affected their online purchase behavior. Chen (2009) conducted research
on customers’ online search behavior and purchase intentions. The study
results indicate that customers show a tendency to search for product, price,
 232 A. Khare and S. Rakesh

and promotional information on online shopping Web sites. Availability of

information about product influences their purchase intention in the first
phase, followed by pricing in the second phase. The decision to select the
channel is postponed and comparisons are made between traditional and
online formats. So and colleagues (2005) posit that online shopping inten-
tions were directly affected by customers’ Web-search behavior. The online
shopping adoption is indirectly affected by online shopping attitude and cus-
tomers’ past online experience. The online search behavior was an important
factor in adoption decision. The information about product and promotions
were critical in the information search.
Online environments offer access to product information. They facilitate
product and service comparisons at customers’ convenience and reduce
search costs. It was assumed that product information through an online shop-
ping Web site would encourage Indian students’ to adopt online shopping.
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Gender
Cho and Jialin (2008) studied the online shopping behavior of Singaporean
customers. The results suggest that emotional attributes, trust, and self-
efficacy were important in predicting online shopping. Females were less
likely to trust online shopping Web sites as compared to males. Hasan
(2010) conducted a study to understand online shopping attitude comprising
of cognitive, affective, and behavioral attributes. He concluded that men
exhibited more positive cognitive, affective, and behavioral online shopping
attitudes than women. Research suggests that men are more likely to shop
online than females and exhibit more confidence in online retail environ-
ments (Venkatesh and Morris 2000; Kwak, Fox, and Zinkhan 2002; Volman
et al. 2005; Haque et al. 2007; Jayawardhena, Wright, and Dennis 2007;
Cho and Jialin 2008; Hashim et al. 2009; Hasan 2010; Chou, Wu, and Chen
2010).

Online Purchase Behavior of Students

Several studies have attempted to understand the online shopping behavior
of students. The reason for selecting students is that a large number of col-
lege students are Internet users and spend a lot of time browsing online
Web sites (Comegys and Brennan 2003; Peng, Tsai, and Wu 2006; Lester,
Forman, and Loyd 2006; Vij 2007; Gupta, Handa, and Gupta 2008; Jones
et al. 2009; Chou et al. 2010). Comegys and Brennan (2003) suggest that col-
lege students spend a lot of time online browsing and searching product
information. The research findings revealed that though many students do
not own credit cards, it did not affect their attitude toward online shopping.
They develop loyalty for specific online Web sites and are likely to make
repeat purchases through those Web sites. Chou and colleagues (2010) tested
 Online Shopping Behavior in India 233
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FIGURE 1 Research objectives for online shopping behavior.

a 6-T model with reference to students’ online shopping behavior. The 6-T
was comprised of factors like ‘‘toy, tool, telephone, territory, treasure of
information, and trade.’’ The results suggest that ‘toy and tool’ were most
accepted factors in online shopping. Male students had a positive attitude
toward toy and telephone attributes of the Internet than females. Lester
and colleagues (2006) found that college students were more likely to pur-
chase services online than merchandise. The factors, such as easy to find
products, convenience, flexibility, ability to compare prices, and fun, was
considered important in students’ online purchase decision. Gupta and
colleagues (2008), in their research on Indian students, found that most of
the students did not trust the online shopping Web sites and preferred to
purchase only low-cost items through the Internet.
From the literature review, it was assumed that the above-mentioned
variables would influence Indian youth’s online purchase intentions. There
is limited research to understand Indian students’ online shopping behavior.
The findings of the research can help online retailers target students. Since
most students are comfortable with using the Internet, they would be likely
to exhibit a positive attitude toward online shopping Web sites. The research
objectives are exhibited through figure 1.

METHODOLOGY

Sample
The purpose of the study was to identify the influence of online shopping
attitude, utilitarian and hedonic values, online information search, and
gender on Indian students’ online purchase intention. The study sample
 234 A. Khare and S. Rakesh

was comprised of 325 college students enrolled in undergraduate and post

graduate course in four different national universities in India. The students
were selected in these universities through a national level examination and
were from different regions of the country. Each university was comprised of
a diverse mix of student population from different states and cities. Four cit-
ies, viz. Ghaziabad, Allahabad, Lucknow, and Delhi, were selected so that a
cross sectional mix of students would be available. Faculty members were
requested to help in administering the questionnaire during class hours.
The students were all enrolled in management courses in the universities.
A convenience sampling technique was used, and 100 filled questionnaires
from each university were desired. However, only 325 usable questionnaires
could be obtained and used for analysis (out of the desired 400). The age of
the students varied between 18–24 years. The sample was comprised of 242
male and 110 female students. All the students were aware of online shop-
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ping Web sites and had visited the Web sites for browsing and searching
for product information. None of the students held part-time jobs.

Instrument Design
The survey instrument contained measures for gender, age, and household
income. The questionnaire contained a total of 24 items that comprised of
four items on online shopping attitude (adapted from Shim et al. 2001;
Kim and Park 2005; Vazquez and Xu 2009); twelve items on utilitarian and
hedonic online shopping motives (adapted from Bhatnagar, Misra, and Rao
2000; Vazquez and Xu 2009); four items on online information search; and
four items on online purchase intention (Vazquez and Xu 2009). A 5-point
Likert scale was used with responses varying on the scale of 1 for strongly
agree and 5 for strongly disagree.

FINDINGS

The online shopping behavior scale was for the first time being administered
on an Indian student sample and, therefore, reliability testing of the scale
items was considered necessary. Cronbach’s (1951) coefficient alpha mea-
sures the extent to which the scale items cohere with each other. Cronbach’s
alpha was computed for each variable (table 1).
The Cronbach’s alpha values ranged between .838–.551 and fit the
desired criteria of scale validation (Nunnally 1978). According to Nunnally
(1978), reliability coefficients of 0.70 or more are considered as a criterion
for an internally consistent scale construct; however, the use of a minimum
alpha value of 0.50 is also considered appropriate for initial research instru-
ment validation.
 Online Shopping Behavior in India 235

TABLE 1 The Reliability Coefficients of Online Shopping Behavior Scale

Online shopping Chronbach’s
items Scale items alpha (a)

Attitude variables I am interested in online shopping.

I think online shopping is easy to use.
I feel comfortable with online shopping.
My attitude toward online shopping is positive. .838
Utilitarian shopping I consider price when I buy online.
motive Price is an important motivation for me when
I am shopping online.
I use the Internet to buy at a lower price.
I buy online because of the convenience.
I think online shopping can save time.
Convenience is one of the main reasons for
me to buy online.
I shop on the Internet when pressed for time.
I can buy products or services online when it is .783
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difficult to buy from offline stores.

Hedonic shopping I feel the Internet is an exciting technology.
motive Shopping online can provide a fun experience.
I like the increased buying power when shopping
online.
Accessing information about price is an important .551
reason to shop online.
Information search Browsing for information online benefits me.
Searching for information about products and
services is one of the most important things
I would consider before purchasing online.
The Internet provides a rich amount of information
for many products.
I often browse for information on products and .588
services via the Internet.
Online purchase I like to shop online.
intention I will buy online in the future.
I have a strong intention to purchase online
in the future.
I often consider buying online. .791

An ANOVA test was administered to understand the gender differences

among Indian students with respect to all five variables, viz., attitude toward
online shopping, utilitarian and hedonic shopping motives, information
search, and purchase intention (table 2).
The results are significant at .01 level for three variables, namely, atti-
tude toward online shopping (F(1, 352) ¼ 14.161, p ¼ .000), utilitarian motive
(F(1, 352) ¼ 6.804, p ¼ .009), purchase intention (F(1, 352) ¼ 10.831, p ¼ .001).
The male and female students differed in their attitude toward online shop-
ping, utilitarian motives, and purchase intention. The findings support earlier
researches, which indicate that men have more positive attitude toward
online shopping Web sites and are likely to purchase products online (Kwak
et al. 2002; Volman et al. 2005; Haque et al. 2007; Jayawardhena et al. 2007;
 236 A. Khare and S. Rakesh

TABLE 2 ANOVA: Gender Differences for Online Shopping Variables

Online shopping variables df Mean square F Sig.

Attitude 1 215.802 14.161 .000

350 15.239
351
Utilitarian motive 1 252.735 6.804 .009


350 37.143
351
Hedonic motive 1 7.380 .948 .331
350 7.782
351
Information search 1 17.316 1.210 .272
350 14.307
351
Purchase intention 1 143.710 10.831 .001


350 13.268
351
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Significant at .01 level.

Cho and Jialin 2008; Hashim et al. 2009; Hasan 2010; Chou et al. 2010). Men
are likely to perceive online shopping Web sites as convenient, flexible,
enabling product=price comparisons, and easy to operate. Women are cau-
tious and consider online Web sites difficult to navigate. The results can be
interpreted in the light that women prefer to physically examine products,
window shop, enjoy excitement of ‘hunting’ for products, trying out pro-
ducts, and looking for bargains. This is not possible through online shopping
Web sites. For most women, shopping is a leisure activity whereas men per-
ceive shopping as goal-directed. Men perceive shopping Web sites to be
time-saving, convenient, and offering flexibility to shop at any time of the
day (Hansen and Jensen 2009). Step wise regression analysis was run to
understand the determinants of Indian students’ online purchase intention
(table 3).
The stepwise regression results indicate five models as determinants to
online purchase intention. In the first model, utilitarian motive was the pre-
dictor to Indian students’ online purchase intention. The R2 value of .345
indicates that utilitarian motive contributes to 34.5% of students’ online pur-
chase intention. Indian students’ intention to purchase through online shop-
ping Web sites is primarily governed by convenience, possibility to make
product and price comparisons, ease in accessing the information, and
flexibility.
In the second model, utilitarian motive and attitude toward online shop-
ping emerge as predictors (R2 ¼ .432, p < 0.01), and both these variables
account for 43.2% of students’ online purchase intention. There is a change
in the predictors and intention to purchase is positively affected by attitude
and utilitarian values. In the third model, information search is introduced.
 Online Shopping Behavior in India 237

TABLE 3 Step-Wise Regression for Online Shopping

Model Variable b R2 Adjusted R2 Significance

1 First regression (Dependent variable: .345 .344

Online purchase intention)
Utilitarian motive .588

.000


2 Second regression (Dependent variable: .432 .429
Online purchase intention)
Utilitarian motive .375

.000


Attitude toward online shopping .364

.000


3 Third regression (Dependent variable: .484 .479
Online purchase intention)
Utilitarian motive .284

.000


Attitude toward online shopping .327

.000


Information search .255

.000


4 Fourth regression (Dependent variable: .503 .497
Online purchase intention)
Utilitarian motive 4.288

.000


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Attitude toward online shopping 6.816

.000

Information search 4.205

.000


Hedonic motive 3.609

.000


5 Fifth regression (Dependent variable: .509 .502
Online purchase intention)
Utilitarian motive .213

.000


Attitude toward online shopping .306

.000


Information search .189

.000


Hedonic motive .191

.000


Gender .082
.036

Note. N ¼ 352.


Significant at .05 level.


Significant at .01 level.

There are three predictors affecting students’ intention to purchase, i.e.,

utilitarian value, attitude toward online shopping, and information search,
which accounts for 48.4% of the variable (R2 ¼ .484). All b values are positive,
which shows that all three variables have a positive influence on the depen-
dent variable.
In the fourth model, hedonic value is introduced. Four variables (utili-
tarian value, attitude toward online shopping, information search, and
hedonic value) affect students’ intention to purchase and are significant at
.01 level (R2 ¼ .503). The four variables together have a 50.3% influence on
the purchase intention. The b values are positive, implying that all variables
are positive predictors. In the fifth and the final model, gender is introduced.
There are five predictor variables in this model, i.e., utilitarian value, attitude
toward online shopping, information search, hedonic value, and gender. The
b value for gender is negative, which suggests that men are likely to purchase
through online shopping Web sites. The four variables have a 50.9% impact
on the intention to purchase (R2 ¼ .509). The p value for utilitarian value,
attitude to purchase, information search, and hedonic value is significant at
.01 levels and for gender; the p value is significant at .05 levels.
 238 A. Khare and S. Rakesh

DISCUSSION AND IMPLICATIONS

The Internet has become an integral part of student life in developing

countries like India. It is used by students in learning and social interaction.
Students are heavy Internet users and have a positive attitude toward the
Internet. They present an attractive segment for online retail. Research sug-
gests that attitude toward online shopping behavior is positively related to
Internet acceptance (Shih 2004). The current generation has been reared in
the Internet age and is comfortable with the latest technologies.
The purpose of the current research was to understand the determinants
of students’ online purchase intention. The results indicate that utilitarian
shopping value for online shopping Web sites affects intention to purchase
most. The easy to use features of Web sites, ease in finding information about
products=prices, make comparisons, convenience, and flexibility are antece-
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dents of utilitarian benefits students seek from online shopping. The vari-
ables like attitude toward online shopping, information search capabilities
of Web sites, and hedonic value comprise of other factors influencing stu-
dents’ intention to purchase decisions. Male students have a positive attitude
toward online shopping as compared to females. The findings suggest
that either products offered online are largely targeted to men or not many
companies online sell female-oriented products. The shopping behavior of
men and women differ significantly and, therefore, companies may come
up with female-oriented products online. The research findings support
earlier research that men have a positive attitude toward online shopping
(Kwak et al. 2002; Volman et al. 2005; Haque et al. 2007; Jayawardhena
et al. 2007; Cho and Jialin 2008; Hashim et al. 2009; Hasan 2010; Chou
et al. 2010).
The online firms will do better if they can improve Web site segmen-
tation, targeting, and positioning. Internet offers opportunity to marketers
to customize Web site content and layout for different segments. Most of
the shopping Web sites of banks, book sellers, and jewelry sellers are hom-
ogenous for their target market and do not appeal to students. Among stu-
dents, males are excited and willing to use new technology, while females
show resistance toward technology use. The navigation styles of men and
women are different and e-retailers may keep in mind these differences
while designing shopping Web sites.
The findings can be helpful to theorists, marketers, and online retailers.
Since most students are a part of the net-savvy generation and addicted to the
Internet, they are likely to accept online shopping readily. They have access
to the Internet at their respective institutions. Most of them have their own
laptops and computers and use the Internet for research; online chatting;
browsing; job search; downloading music files, games, and movies; com-
municating through e-mails; accessing banking services; and shopping.
 Online Shopping Behavior in India 239

The utilitarian and hedonic values play a significant role in selecting a shop-
ping Web site (Teo 2001; Grewal et al. 2004; Overby and Lee 2006, To et al.
2007). The flexibility, ease-of-use, and convenience factors must be coupled
with an attractive layout of the Web pages. The findings revealed that the
utilitarian values are an important attribute in determining online purchase
intention of students. The Web sites should enable product search and com-
parisons. The findings support research, which suggest that intention to pur-
chase online depends on information quality, functionality, responsiveness,
usefulness, and Web site features (Ahn et al. 2004; Trabold, Heim, and Field
2006; Bauer, Falk, and Hammerschmidt 2006; Soopramanien and Robertson
2007; Liu et al. 2008; Bigné-Alcañiz et al. 2008; Ha and Stoel 2009). The con-
venience and product information features of online shopping Web sites
should be improved to attract students to browse the Web sites. The increase
in R2 value in the second model (see table 3) suggests that a 9% increase in
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determinants to intention to purchase can be attributed to students’ attitude

toward online purchasing. The findings support research by Park and Kim
(2003) and Kim and Park (2005), which suggest that attitude toward online
shopping influences purchase intention.
In the third model, the R2 increases by 0.5%, suggesting that search for
information contributes to another 5% of students’ purchase intention. This
may be understood in the light that students spend much time browsing
the Internet for gathering information about products, services and, new
technologies. Earlier research supports the findings (Vij 2007; Gupta et al.
2008). Improving information availability on Web sites would facilitate search
behavior. The research supports other studies, which posit that easy access to
information affects online shopping behavior (Bigné-Alcañiz et al. 2008;
Vazquez and Xu 2009). The hedonic shopping value affects the intention
to purchase by 2% in the fourth model (R2 ¼ .503) and gender contributes
to a .6% increase in intention to purchase in the fifth model. Online retailers
should improve convenience, quality of information, instructions, payment
convenience, and offer detailed information about products. The instructions
should be easy to understand and operate. Web pages should be vibrant,
attractive, and easy to upload.The availability of correct information about
products and services can affect their purchase intention.

LIMITATIONS AND FUTURE RESEARCH

The study has two limitations. First, the scale was not developed for Indian
students, and the items were adapted from previous research. There may
be differences in results if the scale was developed especially for Indian
context as western and Asian cultures are different. Technology use and
adaptation rates vary across developing and developed economies.
 240 A. Khare and S. Rakesh

The second limitation is that there were no measures to understand the

actual Internet use per day and the shopping Web sites most frequently vis-
ited by students. Information about services and products purchased online
can enable in designing the Web sites according to students’ requirements.
Information about total money spent purchasing products or services online
can help in understanding students’ purchase patterns. Research can be
directed to understand the type of products or services purchased online
by students. This can help to target students and offer appropriate promo-
tions to encourage them to purchase online. The primary objective of select-
ing online shopping Web sites for purchase decisions by students was ease of
use, convenience, and flexibility to compare information. An Internet search
can trigger purchase behavior, and managers should improve the interactive
features of Web sites. Research can be directed to understand the specific
Web site features given priority by students in selecting Web sites.
Downloaded by [Arpita Khare] at 19:12 16 November 2011

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