Management Investigation and Dissertation

Dissertation (MN6P00)

Factors influencing online repurchase intention in retail

sector in Nepal

Word Count: 6484

Submission Date: 24th July 2019

Submitted to: Submitted by:

Mr. Navaraj Bhusal Furnima Sherpa
Module Leader University Id: 16033033
 Management Investigations and DissertationMN6P00
2019
Dissertation Assessment

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objectives and researched the chosen topic.

 Extent to which you identified and discussed

relevant research methodology and acknowledged
its reliability, validity and ethics.

 Extent to which data has been analyzed correctly

and discussed with reference to previous academic
research.

 Extent to which you demonstrated that you

understand limitations of your research design and
provide suggestions for future research.

 Extent to which you have structured and presented

the dissertation professionally.

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academic writing and referencing.

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Date: 12/05/2019 Signed:

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DECLERATION

I hereby declare that the dissertation work entitled “FACTORS INFLUENCING ONLINE
REPURCHASE INTENTION IN RETAIL SECTOR IN NEPAL” submitted to the London
Metropolitan University, London is an original piece of work under the supervision of Mr. Navraj
Bhusal, faculty member, Islington Business School, Kathmandu, and is submitted in partial
fulfillment of the requirements for the degree of Bachelors of Business Administration (BBA). This
dissertation has not been submitted to any other university or institution for the award of any degree.

Furnima Sherpa

Date: 12th May 2019

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all those who helped me to complete this report.
Especially I would like to express my gratitude to our Module Leader Mr. Navaraj Bhusal (Sir) who
has continuously helped us in completing this coursework and been providing us mentorship on the
dissertation guidelines and helping be with the research topic, literature search, analysis and the
overall work. He has also provided us with regular feedback which allowed us to refine the work time
and again which helped us improve in the research work. I would also like to acknowledge London
Met for providing us this coursework in this module which has helped us gain knowledge about the
process required for a research and how it is done.
TABLE OF CONTENTS
ABSTRACT 1

CHAPTER 1: INTRODUCTION 3

I. BACKGROUND 3
II. STATEMENT OF PROBLEMS INCLUDING RESEARCH QUESTION 3
III. AIMS 4
IV. RATIONAL OF STUDY 4
V. LIMITATION OF STUDY 4

CHAPTER 2: REVIEW OF LITERATURE 5

I. PRICE 6
II. INFORMATION 6
III. BRAND AND QUALITY 7
IV. NAVIGATION AND CONVENIENCE 7
V. TRUST 7
VI. DELIVERY SERVICE 8

CHAPTER 3: RESEARCH METHODOLOGY 10

I. RESEARCH DESIGN 10
II. STUDY POPULATION 10
III. SAMPLING 10
IV. SAMPLE SIZE 10
V. NATURE AND SOURCE OF DATA 11
VI. PARTICIPANTS 11
VII. MEASUREMENT TOOLS 11
VIII. QUESTIONNAIRE ADMINISTRATION 11
IX. DATA ANALYSIS TECHNIQUE 11
X. ACCESSIBILITY, RELIABILITY, VALIDITY: 12

CHAPTER 4: DATA ANALYSIS AND RESULTS 13

I. PROFILE OF RESPONDENTS 13
II. RELIABILITY TEST 14
III. CORRELATION ANALYSIS 15
IV. REGRESSION ANALYSIS 16
V. MAJOR FINDINGS 19

CHAPTER 5: CONCLUSION 21

I. CONCLUSION AND RECOMMENDATION 21

II. RESEARCH WEAKNESS AND AREAS FOR FURTHER RESEARCH 22

BIBLIOGRAPHY 23

APPENDICES 27
LIST OF FIGURES

1. Figure 1: Conceptual Framework 9

2. Figure 2: Linear Equation 18
LIST OF TABLES

1. Table 1: Demographic Profile of respondents 13

2. Table 2: Online purchases done in last 6 months 14
3. Table 3: Reliability test of dependent and independent factors 14
4. Table 4: Correlation among the independent variables and dependent variable 15
5. Table 5: : Descriptive Statistics 16
6. Table 6: Model Summary 16
7. Table 7: ANOVA test 17
8. Table 8: Coefficients table 17
9. Table 9: Residual Statistics 18
 ABSTRACT
Purpose: In today’s technically advanced era, the use of internet and use of mobile has had a vital
change in the way we communicate and do things (i.e. business). There has been an enormous growth
in the ecommerce field which has allowed the innovations such as online shopping which has created
an ease for its customers. These days online shopping has become a new type of retail shopping and
has been adopted all over the world including Nepal. This method of shopping through internet hasn’t
still been accepted and well known in many other countries and now with increase in knowledge of
online shopping in Nepal it has increased rapidly. For E-retailers of Nepal it is very crucial to have the
understanding of its consumers and their intention to repurchase online which will allow them to grow
their market. So for growth in this market retailers should consider various factors affecting online
repurchase behavior. So with these understanding companies will be in a better position to develop
strategies related to hold a grasps among the potential and actual consumers. So, in this study the
main objective is to examine relationship among various factors that affect the repurchase intention in
Kathmandu.

Design/ Methodology/ Approach: Here explanatory research design and convenient sampling
techniques were used to select the respondents. The data were collected through the online
questionnaire which was distributed through emails and social media. Finally 107 usable data were
extracted to be qualified for the research.

Findings: The findings from the study suggests that price of product, brand/quality of product, trust
factor and delivery service have positive correlation with the intention to repurchase in online medium
and the price, trust and delivery factors similarly are the predictors of the repurchase intention through
online medium. It also finds out that the factors such as; brand/quality of product, information
available of the product and navigation of the webpage has insignificant affect on the repurchase
intention.

Originality/ Value: This study explains the relationship among the different factors with the intention
to repurchase of consumer from Kathmandu. These findings will benefit researchers studying on
repurchase intention on online platform. Furthermore, this study provides evidence that assists
business managers of online retailers to understand consumers which may assist their decision
making.

Recommendations: As price, trust and delivery service factors are found to be the predictors from
the study, the online retailers are recommended to consider these factors in order to increase the
intention of consumers to repurchase through online shops.

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Keywords: online shopping, repurchase intention, e-commerce, shopping behavior, Theory of
planned behavior.

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 CHAPTER 1: INTRODUCTION

i. Background
Online shopping is a form of E-Commerce that enables the customers to directly buy goods and
services from its producers or sellers over the internet using web browsers and newly developed apps
these days. Customers are able to shop through range of different products that includes; computers,
devices, laptops, and smart phones. As stated by Nepal Telecommunications Authority (2018), there
are 32 internet subscriber companies and a total of 521321 people subscribed to internet service which
shows that these days, maximum of people have access to internet which allow them to the
opportunity to browse online and get to shop online. So the ecommerce company can exploit this
market of consumers to sell their product and services by knowing their behaviors and intentions
towards the online shopping.

ii. Statement of problems including research question

Online business as stated above is a growing sector and with growing number of people having access
to internet in Nepal. So it is very important to understand the intention of the customers/consumers in
order to exploit this market as consumers play the key role. Online business was introduced very early
and there have been several journal reports that take in account the consumers’ attitude towards online
shopping and customer satisfactions role in online shopping. Some of these journal reports are; Al-
Debei & Akroush (2015); Park & Kim (2003); Thamizhvanan & Xavier (2013) these looks into the
consumers’ attitude towards online shopping. Similarly journals by Vaghela (2017) have emphasized
in the factors like perceived usefulness and attitude towards online shopping and also in research of
Kumar & Dange (2012) have emphasized in the factors like intentions of customer and website
quality for customer satisfaction. There is also a study for the repurchase intention which was done by
Lin & Lekhawipat (2014), this study was conducted in Taiwan and had taken factors like consumer
satisfaction as a whole and their habits. But it had some adjustments such as; the online stores provide
good after sales service, very convenient and good description available was available. But these
types of study haven’t been done in context of Nepal for this increasing market its vital to know what
factors are likely to have positive or negative impact on the repurchase intention in online sector and
what factors predict the intention to repurchase. So the paper would look into the independent factors
like; price, information available, convenience of webpage, brand/quality, trust factor and delivery
service and what effect they have in leading consumers into repurchase of the products listed in the
online platform.

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iii. Aims
This paper tries to draw out about the attitude of consumers to investigate the relationship between of
the different factors that affect their behavior and intention to purchase from online stores again. So
the main aim of this research is to:

 To identify how the different factors affect the consumer buying behavior and intention for
repurchase.
 To examine the relationship among the independent factors and the repurchase intention, this is
beneficial for online sellers.
 To measure the predictive power of the independent factors that have towards the dependent factor of
repurchase intention this leads them to repurchase it through online medium.

iv. Rational of study

Online Commerce is an emerging business model that sells goods and services through the internet
and it has also entered Nepal and lately has been getting very popular. This sector of online business
has a great market in Nepal as almost 60% of Nepali has access to internet with over 95 percent
accessing it through mobile phones as stated by The International Trade Administration (2018) so it’s
very important for the E- commerce business to know about their consumers’ intention. There are
several issues with the trust in this sector as of now and this paper will address the mentality of the
customers that lead them to purchase online. There are several online shopping platforms that sell
their goods and services like; Daraz, Sastodeal, Foodmandu, and some more. This study will examine
the relationship among the dependent factor and the independent factors, and it will state which
factors significantly affect the repurchase intention.

v. Limitation of study
 This study takes only 6 independent factors for repurchase intention.
 The other limitation is the small sample size of 107 from Kathmandu.
 This study only takes quantitative factors and not qualitative factor.

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 CHAPTER 2: REVIEW OF LITERATURE
The intention of a customer of online purchase is defined as the construct that gives the strength of a
customer’s intention to purchase online in a study by Salisbury, D.W., Pearson, R.A., Pearson, A.W.
& Miller, D.W (2001). Since online transaction involves information sharing and purchase action,
purchase intention will depend on many factors according to Pavlou (2003). So to increase the
consumer’s intention towards online purchase the e-commerce companies need to focus more on the
factors that influence them positively. Future repurchase behavior is said to be determined from the
previous experiences as it is considered riskier than the traditional offline retail purchases according
to a study by Laroche, M., Yang, Z., McDougall, G.H.G. & Bergeron, J. (2015). So in prior study
done by Shim, S., Gehrt, K.C. & Lotz, S.L. (2001) it was stated that previous online purchase
experience reduces the uncertainties which increase the purchase intention and also found out that
past satisfactory online purchase leads to future online purchase while past negative experience will
decrease online purchase intention. So this paper will be taking in account the Nepali consumers of
online shopping who have past experience on online shopping and with reference to the previous
studies’ findings, the hypothesis will be created and tested.

Attitude and subjective norms of a person plays as an influencing factor for the behavioral intention
which was stated in Theory of Reasoned Action (TRA) by Ajzen & Fishbein (1975). The Theory of
Reasoned Action aims to explain the relationship between attitudes and behaviors within human
action. It is mainly used to predict how individuals will behave based on their pre-existing attitudes
and behavioral intentions. An individual's decision to engage in a particular behavior is based on the
outcomes the individual expects will come as a result of performing the behavior. Further Theory of
Planned Behavior (TPB) by Ajzen (1985) is a developed form of TRA to predict an individual’s
intention to engage in a behavior at specific time and place that intends to explain all the behavior
over which the people have the ability to exert self control. For the framework of TPB we can refer
the appendix 1.This means the consumer behavior to repurchase from the internet gets influenced by
the attitude of that person towards the product and the subjective norms for different factors taken in
account in this study of online shopping sector in Nepal

The term “Attitude” is used to denote the overall degree of favorability of a person and it was defined
as “an attitude is an index of the degree to which a person likes or dislikes an object” by Ajzen &
Fishbein (1980). So, according to study of Dabholkar (1994) it was stated that in order to induce
different choice behavior and intention, attitude plays an important role. It was stated that attitude
towards something is formed and accessible which enhances the decision making by Fazio, (2000).
Attitude was found to be an influencing factor for online shopping consumers in a study by Limayem,
M., Khalifa, M. & Frini, A. (2000) as they found that attitude towards web-shopping had the strongest

5
 effect on the intentions to shop online. It seems that direct relationship between attitude and web-
shopping intentions is supported.

Due to the exponential growth in the demands of the number and variety of products and services
available in the online platform the online business has developed highly and it was stated by
Limayem et al., (2000) that the repurchase intention is influenced by the psychological environment.
So this study will look into the affects the independents factors have towards the consumers in making
their decision to repurchase in the online platform. So taking reference to the theory or planned
behavior, the model for this study is created which is shown in the Figure 1.

In the previous studies experience, it is considered important to form customer perceptions regarding
their expectation from online retailers and Liang and Huang (1998) in their study found out that high
experienced customers are likely to continue repurchasing. In a study of online shopping Liu, X., He,
M., Gao, F. & Xie, P. (2008) have identified the significance of customer satisfaction. According to
Bandura (1986) and Dabhokar and Sheng (2009), experience is said to be strongest generator of self-
efficacy and good experience with online shopping creates positive attitudes, increases customers’
self-efficacy and influences future intentions, while a bad experience might have exactly the opposite
effects. Also the paper by Lin & Lekhawipat (2014) took factors consumer satisfaction as a whole and
presumed the site quality and the convenience to be good. Whereas this paper will not only limit
towards the experience and satisfaction but will be taking in account the different factors like:

i. Price
Price of a product in an online store definitely affects the attitude of customer towards the expenditure
while making purchase. It was found out by Gabor, (1979) that the consumers are rational in the
allocation of their expenditure and so price of a product does affect the consumers’ behavior, which
this study will also be checking. Similarly it was found by Wright and Jayawardhena, (2001) that the
price factor is very important in determining consumers’ online shopping behavior as they tend to
become more empowered for the best prices for the products or the value for the money and special
offers. It was stated in a study by Ahuja, M., Gupta, B. & Raman, P. (2003) that a better price is one
of the reasons that motivate consumers in context of USA regarding the online purchases and it was
also stated that in context of online shopping by Reibstein, (2002) that a low price may also attract
price-sensitive customers So, the hypothesis built is:

H1: Better pricing has significant and positive effect on repurchase intention.

ii. Information
It is a primary role of an online store to provide information about the product to help the consumers.
The availability of higher information leads to better buying decision and higher customer satisfaction
according to Patterson & Smith, (2001). The information includes the description and price of the

6
 product available. It is also stated by Rowley (2000) that the information available is key factor for
online buying process which affects the consumers’ intention which will be examined in our study as
well. Studies like Watchravesringkan and Shim (2003) have shown that the combination of price
information and time saving highly affects the online purchasers. So, the hypothesis built is:

H2: Information of product available in webpage has significant and positive effect on repurchase
intention.

iii. Brand and Quality

Brand name and quality plays a vital role towards the consumers’ attitude and it was shown in a study
by Jayawardhena et al., (2007) indicates that there is a very significant effect on the consumer buying
intention from a brand name, which will also be studied in our paper. According to Bellenger &
Korgaonkar, (1980) it was found quality was a great deal of consideration that buyer took while
shopping and also in the context of online shopping it’s similar as in study by Kenneth, G.C., Onzo,
N., Fujita, K. & Rajan, M.N. (2007) found out that customer who shop online are significantly
oriented with the quality of product so higher the quality of the product in online store, higher
consumer online purchase intention is assumed. So we will also examine if the customers repurchase
intention increase with quality of product or not. So, the hypothesis built is:

H3: Branded and product of more quality in online platform has significant and positive effect on
repurchase intention.

iv. Navigation and Convenience

The site layout, organizations features and eases to use falls under this category which is a factor that
affects the consumer shopping behavior. Online shopping becomes pleasurable and satisfying when
the sites are fast, uncluttered and ease to navigate. These features economize shopping time and the
cognitive effort consumers expend figuring out how to shop efficiently online according to Hise &
Szymanski (2000). Research undertaken by Darian (1987) indicates that shopping convenience is an
important factor to be acknowledged as motivating factor in the decision of the consumers to purchase
products staying at home. Referring to these studies we examine in our study if the results are similar
in our context or not. So, the hypothesis built is:

H4: Navigation and convenience of webpage has significant and positive effect on repurchase
intention.

v. Trust
It is an important factor to know the level of trust of the consumers in order to understand their
behavior and decision making as stated by Rutter, (2001). Trust was defined by Currall & Judge,
(1995) as an individual’s reliance on another party under conditions of dependence and risk. So it’s an

7
 important factor regarding the consumer behavior of online market. Online shopping being of a risky
nature, the trust factor and risks has a significant role in affecting the online transaction and intention
towards online shopping according to Pavlou, (2003). So it was stated by Egger (2006) in his study
that there must be online trust when consumers share their personal information and data while
making purchases. In previous studies like; Verhagen, T., Meents, S. & Tan, Y.H., (2006); McKnight,
D.H., Choudhury, V. & Kacmar, C (2002); Ling, K.C., Chai, T.H. & Piew, T.H (2010) it was also
found out that higher consumer trust will result in higher level of consumer online purchase intention,
so it will also be examined in our study too. So, it is hypothesized that:

H5: Higher trust has significant and positive effect on repurchase intention.

vi. Delivery Service

Delivery cost was identified as a fixed cost by Bell, D.R., Ho, T.H. & Tang, C.S. (1998) and
consumers always try to forgo these costs. A large proportion of people will not prefer to pay these
costs for online shopping which is stated by Oppewal, (2006). So this delivery charge factor can affect
the intention to shop online. In a study done by Reibstein, (2002) it was found out that on-time
delivery and shipping and handling are ranked to be moderately important to predicting the
consumers’ satisfaction and intention as compared to the price factor. It was also found that delivering
goods directly to the consumers’ home accurately and dealing with them properly regarding returned
goods are reported to be the factors that influence the consumer in the online shopping context. We
will also examine if the better delivery services leads to consumers’ repurchase intention or not and so
it is hypothesized:

H6: Better delivery service has significant and positive effect on repurchase intention.

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 Figure 1: Conceptual Framework

Independent Variables Dependent Variable

Price of a product

Information Available

Brand and Quality

Repurchase Intention

Navigation and convenience

Security and trust

Payment & Delivery

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 CHAPTER 3: RESEARCH METHODOLOGY

i. Research Design
The study used explanatory research design. This design will analyze the casual relation between the
independent variables such as price, information available on webpage, quality, and convenience of
webpage, trust and delivery system with the dependent variable intention of repurchase from the
online platform. So the research will be analyzing the correlation among the independent variables
and the dependent variables. It used the regression to measure the effect of independent variable on
dependent variable.

ii. Study Population

The International Trade Administration, (2018) stated that the use of internet had increased up to 60%
of the total population which is a quite high penetration rate for a developing county. Among this
60%, the people accessing internet through mobile sums up to 95%. This show a great market
opportunity for the online retailers as the online shopping can be performed with help of just a smart
phone and has been very popular these days. So the study population was be the people who had
access to the online shopping and had shopped online at least once.

iii. Sampling
This study’s unit of analysis was the people involved in the online shopping behavior, so in order to
get effective frame within the samples as per the objective of the study. Convenience sampling
technique was used to draw out the data while keeping in regards the availability of respondents.
Nepal Telecommunications Authority (2018) stated that there are 32 internet subscriber company and
a total of 5,21,321 people subscribed to internet service which shows that these days maximum of
people have access to internet which allow them to the opportunity to browse online and get to shop
online. So as for the sample, it will focus the people of Kathmandu Valley which has a population
density of 20,288 people per square kilometer and comprises of 1/12 of the total population of the
country as stated in world population review (2018).

iv. Sample Size

The study focuses on the relation among the factors stated above with the consumer intention to
repurchase in the online platform so the correlation design is used and most of the previous research
had sample size from 150-350 respondents, so this research will also look into 107 samples for the
study as it is not possible to collect the data from all the individuals’ as the total population would be
too large and time consuming.

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v. Nature and source of data
This study used the primary data which will be collected from the individuals of Kathmandu valley
with the help of questionnaires. The data for different variables like; price, information, quality,
convenience, trust and delivery with the consumer intention was taken at the same period of time.

The research took primary data because it provides better accuracy and up-to date information is
obtained. There is also higher level of control over the research design and methodology which allows
the research to address specific issues.

vi. Participants
The participants were chosen from the people using online medium to shop online from the
Kathmandu Valley, the people who only consent were surveyed and their data were completely
classified. Mostly the participants were chosen through convenience sampling with help of online
media and some of the participants were approached in person with printed questionnaires. All the
participants had at least been involved in online shopping once in the time span of last 6 months. Both
female and male had been equally informed to remove biasness in the study.

vii. Measurement Tools

The questionnaire consists of two sections; one asking for demographic information section and next
for the major variable section, these consisted 26 questions that focused on the online consumers’
behavior and factors that affect it. The respondents will be asked to provide information on the factors
that affect the customers’ behavior and intention. This part of questionnaire will be of Likert scale and
a variable from 1 to 5 where 1 is “highly agree”, 3 is “neutral” and 5 would mean “highly disagree”.

viii.Questionnaire Administration
Since the questionnaire of this study was self report questionnaire provided through online medium,
the participants were informed about the topic and procedure through the same medium to help them
complete the questionnaire. The questionnaire was sent online so every participant and the
questionnaire took around 10-15 minutes to fill it up, and most of queries while filling the
questionnaire were immediately or as soon as possible by the researcher.

ix. Data Analysis Technique

Data were analyzed using the IBM SPSS version 23 for this study. Factors such as price, quality,
information, convenience, trust and delivery were examined with the repurchase intention so,
correlation analysis was used along with the descriptive measures. This allows the paper to find the
relation among the variables. For the descriptive measures this study used mean, median, and
standard deviation, where the data averages, central point and the spreads in the data were calculated
and analyzed. Further, regression analysis was done in order to know to what extend does the
independent variables explains the variation in the dependent variable.

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x. Accessibility, Reliability, Validity:
For the accessibility of this research surveyed among the online shoppers mostly of the Kathmandu
Valley. Regarding the validity the questions will be taken from past papers like; the convenience and
information factor taken from Jiang, Yang & Jun (2013). The factor of price was taken from
Aggarwal & Arora (2018), trust factor taken from Vaghela (2017) and the quality factor from Gehrt et
al. (2012). Similarly the delivery factor’s questions and repurchase intention were taken from the
study of Yingxia Cao, Haya Ajjan & Paul Hong (2018) which was adapted from comScore (2014) and
Reibstein (2002). The reliability test is perfomed and analyzed, the questionnaire is listed in the
appendix 2.

The Cronbach alpha test was used to test the relibility, as this test shows the interconsistency among
the items of the questionnaire when its value is more tha 0.7. Nunnally (1978)

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 CHAPTER 4: DATA ANALYSIS AND RESULTS
This section of the study deals with the presentation of the findings from the survey, the analysis of
the data and discussion on the findings that were obtained from the study. Firstly, the demographic
data of the respondent are listed which is then followed by the reliability test and the validity test for
the data found out through the questionnaire. Then the co-relation among the variables are analyzed
which is then followed by the regression analysis of the findings obtained. Lastly, there are
discussions about the findings of the one way ANOVA test, which helps understand about how the
factors/independent variables influence the consumers’ intention to repurchase in online shopping of
retail sector.

i. Profile of respondents
Table 1: Demographic Profile of respondents

Variable Categories Frequency Percent (%)

Male 63 58.9
Gender
Female 44 41.1
Below 20 25 23.4
Age 20-30 77 72.0
31-40 5 4.7
SLC 5 4.7
Educational +2 Level/ A- Levels 22 20.6
Qualification Bachelors 71 66.4
Graduate Studies 9 8.4
Single 73 68.2
Marital Status In a relationship 28 26.2
Married 6 5.6
Self Employed 25 23.4
Employee 31 29.0
Job
Business 6 5.6
Others 45 42.1
not working 59 55.1
Below 10000 9 8.4
Monthly Income 10000-25000 17 15.9
25000-40000 8 7.5
Above 40000 14 13.1

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 Table 2: Online purchases done in last 6 months

Variable Categories Frequency Percent (%)

Number of times bought from Once 53 49.5
online retail stores in last 6 Twice 22 20.6
months? More than 3 times 32 29.9

The data of Table 1 represents the profile of the 107 respondents who have shopped online before
taking the study and the rest who hadn’t shopped online were not included. From the Table 1, it is
seen that about 58.9% of respondent included males and 72% of them were of age between 20-30
years. More than half of the respondents (66.4%) were from Bachelors level and almost half of the
respondents (42.1%) were unemployed.

The Table 2, summarizes of the number of times respondent have shopped through online stores in
past 6 months and seeing the data it is seen that 49.5% of them have just shopped once, which is
followed by 29.9% people shopping more than 3 times.

ii. Reliability Test

Table 3: Reliability test of dependent and independent factors

Reliability Statistics
Cronbach's
Variable No of items Alpha
Price 2 0.757
Information of product 3 0.736
Navigation and convenience of webpage 4 0.678
Quality and brand of product 4 0.779
Trust Factor 4 0.734
Delivery Factor 4 0.817
Repurchase Intention 3 0.864

The reliability test was done on all the questions of the variables by calculating the Cronbach’s Alpha
and the result are presented on the above table 3.

As stated by Nunnally (1978), Cronbach’s value greater than 0.7 represents good inter-consistency
among the items taken for the study. Referring to the table above, the price factor has 2 items, because
2 of the questions were deleted to get the alpha value of 0.757 which is > 0.7.

The result of Cronbach’s Alpha of information factor is 0.736, which is greater than 0.7 which shows
items listed on the Information factors to be reliable and good inter-consistency; no items were
deleted as it would further reduce the value of Alpha.

14
 Whereas for the navigation and convenience factor the test value is 0.678 and deleting any of the
items won’t increase the result but rather decrease it so all the items are listed on the navigation and
convenience of webpage factor.

For the quality/brand factor the obtained value is 0.779 which is greater than 0.7 which shows the
reliability of the items and good inter-consistency between them and similar to the test of information
factor so no items are removed.

Similarly the trust factors, delivery service factor and repurchase intention have Cronbach’s value
0.734, 0.817 and 0.864 respectively, so it shows good inter-consistency among their variables and no
items were removed from any of these factors too.

iii. Correlation Analysis

The correlation between the dependent factor and the independent variables are obtained in the table 4
below. The value of correlation near to 1/-1 shows strong correlation among the variables where as
values near to 0 shows weak relation among the variables. The result includes both the correlation
among the dependent variables and the independent variables.

Table 4: Correlation among the independent variables and dependent variable

Correlations
Information Navigation and
Available of convenience of Quality and Intention to
Price factors Product webpage brand of product Trust Factor Delivery Service repurchase
Price factors 1 .240* .283** .324** .438** .346** .519**
Information Available
1 .526** .511** .364** .467** .360**
of Product
Navigation and
convenience of 1 .455** .416** .487** .444**
webpage
Quality and brand of 1 .529** .440** .500**
product
Trust Factor 1 .493 **
.567**
Delivery Service 1 .549**
Intention to repurchase 1
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).

From Table 4, it can be seen that all the independent variables have sig level less than 0.05, this shows
very low possibility of any type of error occurring.

Looking into the Pearson Correlation data, we come to know that the Dependent factor of “intention
to repurchase” has strong and positive relation with independent factors; “price”, “quality”, “trust”
and “delivery factor” as the values are positive, greater than 0.5 and near to 1. The other remaining
factors also have positive relation, but the relation is not strong enough as it is near to 0.

15
 We can analyze that among the factors, trust variable (0.567) has the strongest correlation with the
repurchase intention followed by delivery service (0.549), price (0.519) and quality of product
(0.500). Whereas the least correlated variable is information available about the product (0.360).

iv. Regression Analysis

Table 5: Descriptive Statistics

Descriptive Statistics
Std.
Mean Deviation
Intention to repurchase 6.879 2.095
Price factors 5.617 1.779
Information Available of
Product 7.093 2.139
Navigation and convenience
of webpage 8.794 2.354
Quality and brand of product 10.112 2.830
Trust Factor 10.318 2.687
Delivery Service 10.664 3.236

Referring to the table 5, the highest mean is of the delivery service (10.664), showing delivery service
to be a major determinant of repurchase intention. But still has a high standard deviation (3.236)
which states the data to be inconsistent among the respondents. Whereas, the price factor has the least
mean of 5.617 yet it has low standard deviation (1.779) which shows the data to be consistent.

Table 6: Model Summary

Model Summaryb
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .713a 0.509 0.480 1.512
a. Predictors: (Constant), Delivery Service, Price factors, Information Available of
Product, Quality and brand of product, Navigation and convenience of webpage, Trust
Factor
b. Dependent Variable: Intention to repurchase

16
 Table 7: ANOVA test

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 236.937 6 39.489 17.283 .000b
Residual 228.484 100 2.285
Total 465.421 106
a. Dependent Variable: Intention to repurchase
b. Predictors: (Constant), Delivery Service, Price factors, Information Available of Product, Quality and brand of
product, Navigation and convenience of webpage, Trust Factor

A linear regression was used here to get the results to predict the effect on the dependent variable;
repurchase intention to shop online, based on the value of independent variables. Referring to the
Table 6 the value of R square is 0.509, this means that 50.9% of variation in dependent variable
(repurchase intention) taken in this study is explained by the independent variables that are listed
above in this study. The remaining variation is defined by other variables that the study hasn’t listed.

Similarly, in the Table 7, the ANOVA test we see that the F significance is 0.000 (p<0.05); this value
is less than 0.05 which shows the model is fit

Table 8: Coefficients table

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
(Constant) -.091 .733 -.124 .902
Price factors .315 .094 .267 3.364 .001
Information Available of Product -.033 .088 -.034 -.377 .707
Navigation and convenience of webpage .093 .080 .105 1.171 .244
Quality and brand of product .122 .068 .164 1.791 .076
Trust Factor .164 .072 .210 2.290 .024
Delivery Service .159 .058 .245 2.737 .007
a. Dependent Variable: Intention to repurchase

Among the several independent variables, only price factors, trust factors and delivery service
correspond with the intention to repurchase with value of p<0.05, seen in the table 8.

The result shows the price to be a major predictor with the standardized beta of 0.267 continued with
delivery service and trust factor with standardized beta of 0.245 and 0.210 respectively.

The other remaining independent variables; information available, navigation/convenience of

webpage and quality/brand of a product don’t correspond with intention to repurchase with p value
being insignificant (p>0.05).

17
Hence the model to predict the repurchase intention is stated as:

Intention to repurchase= 0.315 x Price + 0.164 Trust + 0.159 Delivery service

Table 9: Residual Statistics

Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N

Predicted Value 2.590 10.246 6.879 1.495 107
Residual -4.606 3.754 0.000 1.468 107
Std. Predicted Value -2.868 2.253 0.000 1.000 107
Std. Residual -3.047 2.483 0.000 0.971 107
a. Dependent Variable: Intention to repurchase

Referring to the residual statistics in Table 9, the mean value of Standard Residual is 0.000 which
states the regression analysis of this model to be correct.

Figure 2: Linear Equation

The above Figure 2 is the linear equation of the intention to repurchase and shows how much the
respondents answer are scattered. We see that the responses are aligned with the linear equation that
shows not much difference in their perspectives. The scatter also shows positive correlation, and the
data are aligned with equation so, there are no outliers here. This shows there was no negative effect
on the regression equation that is used to predict the value of the intention to repurchase. Also the data
here are normally distributed which can be seen through this “normal p-p plot of regression
standardized residual”.

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v. Major Findings
 Delivery service factor had the highest mean (10.664) among the independent variables.
 Price factor had the least variation among respondents with lowest standard deviation of 1.799.
 Price factor, quality/brand, trust factor and delivery services have strong and positive correlation with
intention to repurchase.
 From regression, price was found to be most predictive factor of intention to repurchase followed by
trust factor and delivery service.
 The predictive model for repurchase intention is stated below:

Intention to repurchase= 0.315 x Price + 0.164 Trust + 0.159 Delivery service

vi. Discussion
Our data shows that price factors has a positive and strong correlation of 0.519 with the dependent
variable and also when one unit of price decreases or better prices is made then it positively affects
the intention to purchase by 0.315. The significance level of value of t obtained from the above
regression is 0.000 (p<0.05) which states that price factor of a product in online store affects the
repurchase intention. So, we find out that the hypothesis H1 is supported and we can say Nepal’s
consumers are also similar to that of the other countries when it comes to price factor. As it was stated
by Ahuja et al. (2003) that a better price is one of the reasons that motivates consumers in context of
USA regarding the online purchases.

On the other hand, the information factor has a positive but very weak correlation of 0.360 with the
repurchase intention. Its t value is not significant as it is higher than 0.05 which states that it has no
impact on the repurchase intention in context of Nepal. So, we find out that the hypothesis H2 is
rejected.

Similarly, navigation and convenience factor and the quality/ brand of the product have positive weak
correlation with repurchase intention and similar to that of the information factor the significance
level is higher than 0.05 which shows that there is no significant affect in the repurchase intention of
consumers. So, we reject both the hypothesis H3 and H4.Whereas it was found out by Kenneth et al.
(2007) in his study that customer who shop online is significantly oriented with the quality of
product, as for our study it is not true.

Trust factor has a strong positive correlation of 0.567 with repurchase intention and also the t value of
0.024 (p<0.05) is significant. So it is a predictor of the repurchase intention and here a positive
increase in 1 unit of trust factor increases the repurchase by 0.164 units and vice-versa. Hence we
accept our hypothesis H5 which is also concurrence with the previous studies that stated higher
consumer trust will result in higher level of consumer online purchase intention Verhagen et al.,
(2006); Ling et al. (2010).

19
Similar to the price and the trust factor, delivery factor also has a strong and positive correlation of
0.546 with the dependent variable. Also from the regression analysis we can see the t value is
significant with 0.007 (p<0.05), so we can also state that with every one unit of increase in the service
provided for the delivery factor it will positively increase the consumers’ intention to repurchase
through online medium by 0.159. This allows us to accept our hypothesis H6. This is similar to the
result from the study done by Reibstein (2002) which found out that on-time delivery and shipping
and handling were ranked to be moderately important to predicting the consumers’ satisfaction and
intention as compared to the price factor.

20
 CHAPTER 5: CONCLUSION

i. Conclusion and recommendation

This study contributes to the field of consumers’ intention to repurchase, it examines whether the
different factors like; price, information, quality, convenience, trust and delivery service that affect the
repurchase behavior of consumer in online shopping or not. It also examined the predictive power of
the independent variables for repurchase intention. The results of this study suggest that price,
quality/brand, trust and delivery service have strong and positive correlation with the repurchase
intention. Moreover, it also found out that the price was the major predictor of repurchase intention
followed by trust factor and the delivery services. Whereas the other three factors; information
available of product, convenience of webpage and brand/quality of the products in online stores are
rather insignificant in determining the consumers’ repurchase intention.

The study has significance for the web retailers, marketing managers, internet marketers, online
vendors and web-shoppers in Nepal, for example; sastodeal, daraz and other online marketers. With
this study the retailers and marketers through internet will be able to have more deep knowledge about
their consumers and this will allow them to attract not only new customers but also have a grasp of the
old customers. From the findings the retailers get a good idea about which factor to prioritize.
According to the data the internet sellers of Nepal should prioritize their strategy in the attractive
prices and offers as from the research it was found out that better price has a positive effect on the
repurchase intention and is found to be the strongest predictor among the factors taken in the study.

From the above analysis of data, figures and findings we have found out that the consumer are not
affected by the information provide and the navigation of the webpage so, the web retailers. So, rather
than focusing on these factors it could concentrate on the factors like; increasing trust base in context
of online shopping among customers and providing them with good, timely delivery and offers for
free delivery. For the trust issue they could do various trust building measures like money back
guarantees’ and having more true information about the products listed online. They should also keep
the personal data of the buyers’ safe, as the insecurity of data decreases the trust in online platform.
This could lead consumers’ to not repurchase again.

So, they should firstly be focused on providing attractive prices. Secondly, the more trust should be
built among the consumer and finally consumers should be provided with good and timely delivery of
their products. By emphasizing in these factors they could retain the customers and emphasize on
growing, as these strategies would allow them to have consumers’ repurchasing from their stores
again and again.

21
ii. Research Weakness and areas for Further Research
Though the above study has found out some essential factors affecting the repurchase and to what
extend is it affected, this research has its own limitations. The major limitation is of the convenience
sampling of just 107 respondents might not be able to represent the whole population of Kathmandu.
This number of respondent may not be able to generalize to the whole population, so it is advised for
future researchers to take a bigger sample size with from all range of people which would draw out
more appropriate data. This research has found out above that it only determines the 50.9% of the
repurchase intention so; it is also advised for the future researchers to identify more of the factors that
determine the repurchase intention.

The study only takes quantitative data and disregards the qualitative data, so future researchers could
also take in qualitative data by taking interviews and secondary data. The study only takes correlation
and regression for analysis so, future researchers could different analysis tools and models to get
further contribution in this area of study.

Another limitation is from the perspective of geographical context of the current study; that is
Kathmandu. Although some of the findings like price of a product are similar in context to other
countries, but these findings may not necessarily be applicable for other countries. Thus, further
studies in different countries are recommended which could strengthen and validate the findings of
this study.

The study is a cross-sectional study which represents that the data are of a specific time and it doesn’t
show how the consumers’ intention towards online may change over time so for future studies, a
longitudinal design is also recommended as it would show the changes that occur in the intention and
behavior of consumers in online shopping.

As per the topic of the research, it only took account for the people who have at least shopped through
online shops once in the last 6 months while it left the people who had stopped performing online
shopping. Also for the future it is necessary to study in about why the factors such as; quality/ brand,
information and convenience of the webpage is of no impact in context of Nepal, but has important
affect in other countries consumers’.

22
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APPENDICES
Appendix 1: Theory of planned behavior

27
 Appendix 2: Questionnaire
Variables Item 1=Strongly Agree and 5= strongly disagree
1 2 3 4 5
When I shop online. I look for price information
Discounts sale and free gifts are available in online shopping
Internet shopping provides best price
Price Online stores save my money

Provides product specifics

Sufficient information to identify different products
Information Available Uses both text and graphics of product information

User-friendly web site for making purchases

Navigation and Easy to understand and navigate web site
convenience of Find desired products quickly
webpage Product classification is easy to follow

Quality products at many different retailers

Buy products carrying well-known brands
Quality and Brand of Good quality products, use them for long time
product Best value for the money

I believe that online shopping website can protect my privacy

I select online stores, which I believe are honest
I feel that online vendor would provide me with good service
Trust I feel that the online vendor is trustworthy

The online stores I use deliver the product based on an agreed time
I often receive my product within expected time period
I often receive free/discounted shipping
Payment Method The online stores give me the flexibility to choose delivery date

I will recommend my friends/relatives to do online shopping

I will continue to do online shopping in the near future
Repurchase Intention It is likely that I will repurchase from this internet store in the near future

28