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Vaibhav Misra*
Faculty of Management,
Symbiosis International (Deemed University),
Pune, India
and
Symbiosis Centre for Management Studies,
Symbiosis International (Deemed University),
Plot No. 47 & 48, Sector 62, Noida, Uttar Pradesh, 201301, India
Email: rockingvabs21@gmail.com
*Corresponding author
Anubha Vashisht
Symbiosis Centre for Management Studies,
Symbiosis International (Deemed University),
Plot No. 47 & 48, Sector 62, Noida, Uttar Pradesh, 201301, India
Email: dydirector@scmsnoida.ac.in
Abstract: Considering the rapid growth of online shoppers and their interests
in shopping online, we planned our study. Our study identifies the factors that
influence the behaviour of consumers to shop online and the intensity of the
factors to which it is considered as a deciding variable. Data were collected
from 384 respondents from Lucknow city using a structured questionnaire.
Convenience sampling was used for collecting the data. We used linear
regression to develop our model. The result of linear regression showed that
information search and electronic word of mouth were the most important
factors and had an influence on online shopping adoption. We used Spearman’s
correlation to quantify the intensity of these factors on consumers’ online
shopping behaviour.
1 Introduction
Online shopping has gained much attention in the past due to its popularity among
consumers. Today consumers are adopting this medium to purchase their daily needs as
well as the basic needs. The importance of online shopping can be proved by the increase
in the number of online shoppers in India. A report on e-commerce by Confederation of
Indian Industry (CII) in 2016 reveals that in 2013, there were 20 million of online
shoppers in India, in 2015 the number of online shoppers was increased to 39 million. It
is estimated that in 2018, this number will increase to 140 million and in 2020 it may go
to 220 million. This report shows that there is rapid growth in online shoppers in India.
This growth of online shoppers might have been influenced by certain factors that drive
them to shop online. Therefore, we decided to find out those factors which drive the
consumers to shop online. We also decided to quantify the intensity to which these
factors influence the consumers’ behaviour to shop online. That is why we planned our
research and focused on the factors through past literature given by the researchers.
2 Literature review
Kumar and Thakur (2016) considered convenience as one of the important factors
that motivate shoppers to shop online; another factor considered important was
information-search. They found that information search is a higher motivating factor then
convenience. Online sellers should have smooth refund policies that can easily be
understood by shoppers. Refund issues have a high impact on consumers to shop online
(Huseynov and Yıldırım, 2016). Walsh and Brylla (2016) found that there is a negative
impact of product returns on customer satisfaction, trust, and word of mouth. The primary
concern of the customer for shopping online is trust and perceived usefulness. Perceived
ease of use and online shopping enjoyment were the other important factors that
influence the customer’s attitude to shop online (Butt et al., 2016). Bilgihan (2016)
studied the preference of Gen Y customers and found that they prefer that trust plays an
important role in developing e-loyalty. The other significant predictor that develops
e-loyalty is a positive online experience. San Lim et al. (2016) studied the apparel
industry with the focus on Generation Y’s online website satisfaction; they detected
usability, credibility, service quality and transaction cost as important factors influencing
customer satisfaction while purchasing through the website. They found that usability,
credibility and service quality influences customer satisfaction during their purchase
through websites.
Khan et al. (2015) found that the satisfaction of customers to re-purchase from
e-stores is influenced by seven constructs. These constructs are: price, convenience,
product information, return policy, financial risk, product risk, and delivery risk.
Raman (2014) conducted the study on male and female shoppers; it was found that
female consumers prefer convenience as an important factor of predilection towards
online shopping, whereas male consumers considered the risk of doing transaction as an
important factor for their engagement in online shopping. Clemes et al. (2014) ranked
seven important decision factors of online shopping; convenience was one of these
important factors. Other factors considered important were: perceived risk, consumer
resources, service quality, subjective norms, product variety, and website factors. Akbar
and James (2014) researched nine factors; they considered refund as a strong influencer.
The other influencers were price, convenience, auction websites, security, brand, search
engines, promotion, and online shopping malls. Misra and Mishra (2014) found trust as
an important motivator for acceptability of e-commerce among the consumers. The other
factors found those motivate consumers to accept e-commerce are: security,
telecommunication infrastructure, awareness about e-commerce, language, and
economical background. Online shopping convenience, security and product risk,
324 V. Misra and A. Vashisht
complexity and waiting time and enjoyment and pleasure are significant predictors of
consumers’ attitude toward online shopping (Ramtohul et al., 2014).
Sen (2014) found that online purchase is influenced by cost factor, convenience
factor, product factor, and seller related factor. They are considered to be important for
shopping online.
Doaei and Hassanzadeh (2013) found the price, time-saving and convenience as
important factors that motivate consumers to shop online. Kacen et al. (2013) found that
shipping and handling charges, exchange/refund policy of returns, providing an
interesting social or family experience, helpful salesman, after purchase service and
uncertainty about getting the right item are considered to be disadvantaged with online
shopping. Online trust is found to be one of the significant predictors of consumer
purchase intention. The other factors that were found significant predictors were: impulse
purchase orientation and prior online purchase experience (Thamizhvanan and Xavier,
2013). The study conducted by Al Mana and Mirza (2013) on Saudi Arabian customers
resulted that electronic word of mouth (e-WOM) had an impact on online shoppers of
Saudi while making online purchase decision. They also revealed that a large percentage
of online shoppers consider the online forums important during purchase decision
through websites.
Prasad and Aryasri (2009) identified convenience, web store environment, online
shopping enjoyment and customer service have to an impact on consumer’s willingness
to shop online. Trust was considered to have no impact on consumers’ willingness to
shop online. Delafrooz et al. (2009) found that utilitarian orientations, convenience, price,
wider selection (assortment) are the factors that impact consumers’ attitude toward online
shopping. The findings of Tariq and Eddaoudi (2009) indicate that customers’
willingness to shop online is influenced by trust, age, security, awareness and piracy
factors.
There are many factors identified by the researchers in the past. It is not necessary
that those factors may have an impact on the consumers of Lucknow. Therefore, we
conducted this study to identify the important factors of online shopping adoption that
influence the decision of the consumers of Lucknow city. Further, the intensity of the
impact of factors of online shopping adoption might not be studied by the researchers in
the past. In our study, we investigated the intensity of factors of online shopping
adoption.
The main objective of our study was to identify the factors that influence the purchase
behaviour of consumers of Lucknow city towards online shopping. We also considered
the quantification of the intensity of the preferred factors of online shopping with the
purchase behaviour of the consumers of Lucknow city.
Consumer behaviour and online shopping 325
4 Research methodology
The factors of online shopping adoption are represented in Table 1. We conducted the
study on 384 responded respondents to find out about the factors that influence their
decision to shop online. We explored 18 factors through literature review. A survey was
done on these 18 factors in Lucknow city and we found that 11 factors: refund and return
policy, perceived risk, product price, information search, e-WOM, security, perceived
usefulness, variety of products, shopping enjoyment, convenience, and trust were
responded as important factors that drive consumers to shop online. These 11 factors
were considered further for the study.
Table 2 shows the test of normality. As our sample size was 384 respondents, which
is considered to be a quite big sample for the study, therefore as suggested by Sen and
Srivastava (2012) we used Kolmogorov-Smirnov test to test the normality. We found that
the value of p < 0.05, therefore, we do not assume normality in our data. In other words,
our data is not normally distributed.
Table 3 represents the method used for analysis, in the first stage, all the variables
were analysed using the enter method whereas in the second stage the method used for
analysis was backward. By using backward method variable named security was removed
in second stage, convenience was removed in the third stage, shopping enjoyment was
eliminated in the fourth stage, product price was eradicated in the fifth stage, perceived
risk was eliminated in the sixth stage and trust was eradicated in the seventh stage,
variety of product was removed in the eighth stage followed by refund and return policy
and perceived usefulness in ninth and tenth stage respectively. We developed the model
in ten stages. We developed the model only on the cases for which the response received
for the question ‘have you ever purchased a product online’ was ‘yes’.
Through Table 4, we interpret that in the first six stages R-square was 0.101 and
adjusted R-square was 0.049 in the first stage, 0.054 in the second stage, 0.059 in the
third stage, 0.064 in the fourth stage, 0.068 in the fifth stage and 0.073 in the sixth stage
which was not very close to R-square. Similarly, from seventh stage R-square was 0.099
with the adjusted R-square 0.076, in the eighth stage R-square was 0.095 with the
adjusted
R-square 0.077 and ninth stage R-square was 0.090 and adjusted R-square was 0.076,
which was better compared to earlier stages. But in the last stage using backward method
the R-square was 0.080 and adjusted R-square was 0.071, which was close to R-square.
The model is considered good when the adjusted R-square is very close to R-square.
Therefore, we consider this model as a good model for our study.
Consumer behaviour and online shopping 327
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Refund and return policy 0.237 384 0.000 0.871 384 0.000
Perceived risk 0.222 384 0.000 0.852 384 0.000
Product price 0.242 384 0.000 0.869 384 0.000
Information search 0.206 384 0.000 0.894 384 0.000
Electronic word of 0.230 384 0.000 0.887 384 0.000
mouth (e-WOM)
Security 0.251 384 0.000 0.867 384 0.000
Perceived usefulness 0.204 384 0.000 0.898 384 0.000
Variety of product 0.228 384 0.000 0.853 384 0.000
Shopping enjoyment 0.232 384 0.000 0.874 384 0.000
Convenience 0.215 384 0.000 0.859 384 0.000
Trust 0.222 384 0.000 0.873 384 0.000
a
Note: Lilliefors significance correction.
328 V. Misra and A. Vashisht
R
Adjusted Std. error of
Model Have you ever purchased R-square
R-square the estimate
product online = yes (selected)
1 0.317 0.101 0.049 0.118
2 0.317 0.101 0.054 0.118
3 0.317 0.101 0.059 0.117
4 0.317 0.101 0.064 0.117
5 0.317 0.101 0.068 0.117
6 0.317 0.101 0.073 0.116
7 0.315 0.099 0.076 0.116
8 0.309 0.095 0.077 0.116
9 0.300 0.090 0.076 0.116
10 0.283 0.080 0.071 0.117
Table 5 discuss about the ANOVA results; the value of F is 1.944 in the first stage of
analysis which was increased to 8.711 in the last stage of analysis which is significant at
1% level of significance, we found that there is the increase in the value of F, which
means that there is difference in the means of variables as the high value of ANOVA
means that there is more chance for null hypothesis to be rejected.
Table 5 ANOVA
Unstandardised Standardised
Model coefficients coefficients t Sig.
B Std. error Beta
1 (Constant) 1.015 0.035 29.087 0.000
Refund and return policy –0.065 0.085 –0.366 –0.770 0.442
Perceived risk –0.005 0.047 –0.032 –0.118 0.906
Product price 0.004 0.043 0.023 0.104 0.917
Information search 0.152 0.034 0.845 4.463 0.000
Electronic word of mouth –0.062 0.056 –0.314 –1.108 0.269
(e-WOM)
Security –0.001 0.028 –0.005 –0.030 0.976
Perceived usefulness –0.028 0.024 –0.154 –1.164 0.246
Variety of product –0.009 0.012 –0.093 –0.795 0.427
Shopping enjoyment –0.004 0.066 –0.024 –0.067 0.946
Convenience 0.001 0.020 0.007 0.051 0.959
Trust 0.017 0.045 0.100 0.387 0.699
Notes: Dependent variable: awareness about online shopping.
Selecting only cases for which have you ever purchased product online = yes.
Consumer behaviour and online shopping 331
Unstandardised Standardised
Model coefficients coefficients t Sig.
B Std. error Beta
2 (Constant) 1.015 0.034 29.566 0.000
Refund and return policy –0.065 0.084 –0.365 –0.772 0.441
Perceived risk –0.005 0.035 –0.027 –0.130 0.897
Product price 0.004 0.041 0.021 0.100 0.921
Information search 0.152 0.034 0.845 4.483 0.000
Electronic word of mouth –0.062 0.051 –0.317 –1.234 0.219
(e-WOM)
Perceived usefulness –0.028 0.024 –0.154 –1.167 0.245
Variety of product –0.009 0.012 –0.093 –0.799 0.425
Shopping enjoyment –0.005 0.065 –0.025 –0.071 0.944
Convenience 0.001 0.020 0.007 0.050 0.960
Trust 0.016 0.034 0.095 0.489 0.626
3 (Constant) 1.014 0.033 30.816 0.000
Refund and return policy –0.065 0.084 –0.362 –0.774 0.440
Perceived risk –0.005 0.035 –0.027 –0.132 0.895
Product price 0.004 0.041 0.023 0.106 0.915
Information search 0.152 0.034 0.846 4.495 0.000
Electronic word of mouth –0.062 0.050 –0.317 –1.237 0.218
(e-WOM)
Perceived usefulness –0.028 0.024 –0.153 –1.169 0.244
Variety of product –0.009 0.012 –0.093 –0.800 0.424
Shopping enjoyment –0.004 0.065 –0.024 –0.067 0.946
Trust 0.016 0.033 0.095 0.493 0.622
4 (Constant) 1.014 0.032 31.518 0.000
Refund and return policy –0.069 0.052 –0.387 –1.340 0.182
Perceived risk –0.004 0.035 –0.026 –0.127 0.899
Product price 0.005 0.040 0.025 0.122 0.903
Information search 0.151 0.034 0.845 4.514 0.000
Electronic word of mouth –0.063 0.050 –0.319 –1.268 0.206
(e-WOM)
Perceived usefulness –0.028 0.024 –0.153 –1.171 0.243
Variety of product –0.009 0.011 –0.091 –0.826 0.410
Trust 0.017 0.033 0.095 0.495 0.621
5 (Constant) 1.015 0.030 34.129 0.000
Refund and return policy –0.066 0.044 –0.369 –1.491 0.138
Perceived risk –0.003 0.033 –0.019 –0.096 0.924
Information search 0.151 0.033 0.843 4.532 0.000
Notes: Dependent variable: awareness about online shopping.
Selecting only cases for which have you ever purchased product online = yes.
332 V. Misra and A. Vashisht
Unstandardised Standardised
Model coefficients coefficients t Sig.
B Std. error Beta
5 Electronic word of mouth –0.061 0.047 –0.310 –1.300 0.195
(e-WOM)
Perceived usefulness –0.028 0.023 –0.156 –1.209 0.228
Variety of product –0.010 0.010 –0.095 –0.921 0.358
Trust 0.016 0.033 0.090 0.482 0.631
6 (Constant) 1.015 0.030 34.265 0.000
Refund and return policy –0.066 0.044 –0.371 –1.504 0.134
Information search 0.151 0.033 0.841 4.551 0.000
Electronic word of mouth –0.062 0.046 –0.314 –1.341 0.182
(e-WOM)
Perceived usefulness –0.028 0.023 –0.156 –1.218 0.225
Variety of product –0.009 0.010 –0.092 –0.942 0.347
Trust 0.014 0.024 0.078 0.563 0.574
7 (Constant) 1.016 0.030 34.359 0.000
Refund and return policy –0.054 0.039 –0.304 –1.409 0.161
Information search 0.152 0.033 0.847 4.601 0.000
Electronic word of mouth –0.063 0.046 –0.322 –1.383 0.168
(e-WOM)
Perceived usefulness –0.028 0.023 –0.154 –1.206 0.229
Variety of product –0.009 0.010 –0.086 –0.891 0.374
8 (Constant) 1.019 0.029 34.688 0.000
Refund and return policy –0.037 0.034 –0.210 –1.116 0.266
Information search 0.148 0.033 0.823 4.521 0.000
Electronic word of mouth –0.085 0.039 –0.430 –2.164 0.032
(e-WOM)
Perceived usefulness –0.030 0.023 –0.163 –1.280 0.202
9 (Constant) 1.024 0.029 35.262 0.000
Information search 0.134 0.030 0.747 4.420 0.000
Electronic word of mouth –0.106 0.034 –0.538 –3.087 0.002
(e-WOM)
Perceived usefulness –0.033 0.023 –0.183 –1.451 0.148
10 (Constant) 1.016 0.029 35.518 0.000
Information search 0.122 0.029 0.680 4.171 0.000
Electronic word of mouth –0.124 0.032 –0.629 –3.859 0.000
(e-WOM)
Notes: Dependent variable: awareness about online shopping.
Selecting only cases for which have you ever purchased product online = yes.
Consumer behaviour and online shopping 333
Table 6 represents the coefficients; coefficients tell about the structure of the model. We
selected awareness about online shopping as the dependent variable, and in the first stage
the predictors were refunded and return policy, perceived risk, product price, information
search, e-WOM, security, perceived usefulness, a variety of products, shopping
enjoyment, convenience and trust. We only considered those cases who responded that
they purchased the online product at least once in their life.
We used backward method of regression, which eliminated the variables in each stage
and finally we were left with information search and e-WOM as predictors in the final
stage of analysis.
In Table 7, we tested the intensity in relationship using Spearman’s correlation
between have you ever purchased product online and information search and e-WOM
which were retrieved after using regression. We found that the value of correlation for
information search was 0.605 and for e-WOM was 0.675 (Table 7) which were found to
be significant at .01 level.
Table 7 Correlations
found that there is a significant positive relationship between an e-WOM and ‘have you
ever purchased the product online’.
We conclude that information search and e-WOM are important factors considered by
the consumers adopting shopping online. We also found that the intensity in the
relationship between these factors and purchasing online is positively significant. These
factors are important when selling to consumers. Therefore, our study recommends
online shopping organisations to consider these factors as important when preparing the
strategies for sales.
Our study explores information search and e-WOM as one of the emerging factors of
online shopping adoption. In previous studies researchers focused price, trust,
convenience, refund and return policy, perceived risk, consumer resources, service
quality, website factors, time saving, shipping and delivery charges, website
environment, customer service, security, perceived usefulness, variety of environment
and shopping enjoyment as stated in literature, the researchers in past did not focus over
how the information is disseminated to consumers about the online shopping portals.
There are many advertisements placed on television, newspapers, magazines and social
media about the offerings by the online shopping portals nowadays. We found e-WOM as
one of the predictors of communicating with consumers and making them aware of
different schemes and offerings. This is the cheapest method of creating and building
trust among the consumers.
We found e-WOM and information search as an important predictor of online
shopping adoption. Consumers do give weight to their peer views or references in the
purchase process.
8 Managerial implications
Our study provides following implications that can be used by the organisations for a
formulation of strategy:
• organisations should consider methods of information search and e-WOM as an
important while deciding the media strategy
• organisations can focus on peer communication and can launch various programs for
peer recognition to refer the consumers.
Like every study, our study also had certain limitations. Firstly, our model considered
factors of online shopping adoption that were explored and considered important by the
consumers in the survey; there are many other factors such as consumer resources,
shipping and delivery charges, service quality, etc. which may be considered as
important. We did not include these factors in our study. Therefore, we cannot explain
the applicability and importance of these factors. Secondly, the area of study was
Consumer behaviour and online shopping 335
restricted to one geography. Therefore, there is the possibility that the factors considered
in the study may not be suitable for some other geography.
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