Impact of online shopping on Consumer

buying intention
Aliza Ahmed (20201-28521)
Aleena Mubashir (20201-28203)
Shiza Ali
Rimsha Rahat
Introduction
 Online shopping is a process whereby consumers directly buy goods, services etc. from a seller without an intermediary
service over the internet. Shoppers can visit web stores from the comfort of their house and shop as by sitting in front of
the computer” (Edwin Gnanadhas, 2018).

 Availability of low price cell phones and easy access to internet has led to substantial growth in online shopping trends.

 Location of sellers and buyers are not a barrier.

 Growth in Supply-chain.

 Pakistan is the 46th largest ecommerce market, with a turnover of US$4 billion in 2021.

 Major impact of Covid-19

 Examples: Ali Express, Amazon and Daraz etc.

Growth in Online Shopping

Reference:
Ahmed, Z., Su, L., Rafique,
K., Khan, S. Z., & Jamil, S.
(2021). A STUDY ON THE
FACTORS AFFECTING
CONSUMER BUYING
BEHAVIOR TOWARDS
ONLINE SHOPPING IN
PAKISTAN. Journal of Asian
Business Strategy, 7.
Scope of the Study

 This study has investigated the impact of different variables of online shopping like product description and image,
transaction security, website quality, product reviews and return policies on the consumer buying intention.

 Dependent Variable: Consumer Buying Intention.

 Independent Variable: Product Description, Transaction Security, Website Quality, Product Reviews and Return
policies.

 Age bracket of our sample is between 16-45 and above.

Objective of Study

 To gauge the impacts of different factors of online shopping such as product description, transaction
security, website quality, product reviews and return policies on the consumer buying intention.
Problem Statement

In todays’ technologically advanced world, the easy access to fast internet has opened a new dimension for the customers
to shop online from any part of the world. The online presence of the brand is not enough to motivate the customers to
make a purchase, there are elements that impact the consumers buying intentions in the online shopping forum. This study
will help brand managers of companies selling online in identifying the impact of elements of online shopping on
consumer buying intention, hence they can look into these elements which will help them in achieving maximum online
consumers.
Research Questions

 Does Product description have any impact on consumer buying intention?

 Does transaction security have any impact on consumer buying intention?

 Does website quality have any impact on consumer buying intention?

 Does product reviews have any impact on consumer buying intention?

 Does return policies have any impact on consumer buying intention?

 Hypotheses

 H1:There is statistically significant positive impact of product image and description on consumer buying intention.

 H2: There is statistically significant positive impact of transaction security on consumer buying intention.

 H3: There is statistically significant positive impact of Website quality on consumer buying intention.

 H4: There is statistically significant positive impact of product reviews on consumer buying intention.

 H5: There is statistically significant positive impact of return policies on consumer buying intention
LITERATURE REVIEW
1. Website Quality and Consumer buying intention:
A website is considered to be good if it meets certain criteria like functionality, design,
authenticity, content, professionalism, efficiency, and effectiveness. Sulianta (2009:60) Website
quality can be measured in three ways, as described below by Barnes and Vidgen (2003):
 The quality of the data
 The level of communication
 High-level usability
2. Transaction security and Consumer buying intention:

 In an online environment, security is defined as the ability of the online retailer to protect
consumer personal information and their financial data from being stolen.

 Perceived security is the consumer assessment that an online retailer can process online
transactions without mistakes and all personal information is kept confidential confidential to
avoid negative consequence.
3. Return policies and Consumer buying intention:

The majority of retailers provide free product returns.

 Many discount electronic retailers permit returns within 30 days of purchase.
Return policies are similar to warranties as they protect customers from defective
products, making risk-averse customers willing to pay more for a product than if there is
no return policy.
4. Product Reviews and Consumer buying intention:

Online consumer reviews (OCRs) are pieces of information generated by website

users who have already purchased the target product.

 OCRs contain product information and recommendations from the consumer's

point of view (Park et al., 2007).
5. Product description:

The marketing copy that describes a product's features and benefits is called a product
description.
A product description's main goal is to persuade a consumer to buy by giving them important
details about the characteristics and major advantages of the product.
RESEARCH METHODS
Procedure of Data Collection:

• The data has been collected with the help of a Likert scale based on 5 points and
quantitative research is carried out on the impact of online shopping on consumer
buying intention in the fashion industry of Pakistan.

• The online questionnaire is filled out by 207 respondents. The undergraduate students of
the Institute of Business Management are selected as the sample for this research.
Sampling Technique & Sample Size:

For this research, we have used convenience sampling which is a type of non-probability
sampling. Our sample size is 207 which means we collected responses from 207 students the
ages of 16 to 45 and above.

Instrument of Data Collection:

The Questionnaire was based on closed-ended questions. The questionnaire was divided
into different sections which were based on the dependent variable: consumer buying intention,
and independent variables of the research: product description, transaction security,
website quality, product reviews, and return policies.
TABLES AND INTERPRETATIONS
NORMALITY TABLE
 INTERPRETATIONS

a) Since the mean value of variable “Product Review (PRM)” is 3.7799 which lies between 1 to 7 and the values of
skewness and kurtosis are -0.526 and 2.512 respectively which lies between -3 and 3 so the data is following a normal
distribution curve.
b) Since the mean value of variable “Return policy (RPM)” is 3.8823 which lies between 1 to 7 and the values of
skewness and kurtosis are -0.173 and -0.309 respectively which lies between -3 and 3 so the data is following a normal
distribution curve.
c) Since the mean value of variable “Transaction Security (TSM)” is 3.5036 which lies between 1 to 7 and the values of
skewness and kurtosis are 0.060 and -0.073 respectively which lies between -3 and 3 so the data is following a normal
distribution curve.
d) Since the mean value of variable “Product Description (PDM)” is 4.183 which lies between 1 to 7 and the values of
skewness and kurtosis are -0.982 and 2.710 respectively which lies between -3 and 3 so the data is following a normal
distribution curve.
e) Since the mean value of variable “Website Quality (WQM)” is 4.0506 which lies between 1 to 7 and the values of
skewness and kurtosis are -0.788 and 2.897 respectively which lies between -3 and 3 so the data is following a normal
distribution curve.
f) Since the mean value of variable “Consumer Buying Intention (CBI)” is 3.9777 which lies between 1 to 7 and the
values of skewness and kurtosis are -0.444 and 1.849 respectively which lies between -3 and 3 so the data is following a
normal distribution curve.
REALIABILITY TABLE
 INTERPRETATIONS

a) The variable Product Reviews fulfills the requirement of internal consistency reliability as the value of
Cronbach’s Alpha is 0.639 which is greater than 0.6.
b) The variable Return policy does not fulfills the requirement of internal consistency reliability as the value
of Cronbach’s Alpha is 0.555 which is less than 0.6.
c) The variable Transaction Security fulfills the requirement of internal consistency reliability as the value of
Cronbach’s Alpha is 0.646 which is greater than 0.6.
d) The variable Product Description fulfills the requirement of internal consistency reliability as the value of
Cronbach’s Alpha is 0.735 which is greater than 0.6.
e) The variable Website Quality fulfills the requirement of internal consistency reliability as the value of
Cronbach’s Alpha is 0.816 which is greater than 0.6.
f) The variable Consumer Buying Intention fulfills the requirement of internal consistency reliability as the
value of Cronbach’s Alpha is 0.621 which is greater than 0.6.
ADJUSTED R2 TABLE AND INTERPRETATION

71.6% variance in Consumer Buying Intention can be explained through the five independent variables i.e.
Product Reviews, Return policy, Transaction Security, Product Description, Website Quality.
ANOVA TABLE AND INTERPRETATION

As the Significance value is 0.000 which is less than 0.05 then the overall model is significant.
P-VALUE TABLE
INTERPRETATIONS

a) Since the significance value of variable Product Reviews is 0.027 which is less than 0.05 and the beta value is 0.101
so this means that Product Reviews has a statistically significant positive impact on Consumer Buying Intention.

b) Since the significance value of variable Return policy is 0.001 which is less than 0.05 and the beta value is 0.162 so
this means that Return policy has a statistically significant positive impact on Consumer Buying Intention.

c) Since the significance value of variable Transaction Security is 0.000 which is less than 0.05 and the beta value is
0.255 so this means that Transaction Security has a statistically significant positive impact on Consumer Buying
Intention.

d) Since the significance value of variable Product Description is 0.920 which is greater than 0.05 and the beta value is
0.005 so this means that there will be no impact on Consumer Buying Intention.

e) Since the significance value of variable Website Quality is 0.000 which is less than 0.05 and the beta value is 0.049
so this means that Website Quality has a statistically significant positive impact on Consumer Buying Intention.
CONCLUSION
 The constructs of this study were well-defined and they followed the normal
distribution

 The multicollinearity between all the constructs: Website quality, Transaction

security, Return policy, Product review and Product description are valid.
 Our study proved that Website quality, Transaction security, Return policy and
Product review has a statistically significant positive impact on consumer buying
intention whereas Product description has no impact on the consumer buying
intention intention.