Factors Affecting Consumer’s Online Shopping Buying Behavior

Factors Affecting Consumer’s Online Shopping Buying Behavior

Anurag Pandeya, Jitesh S. Parmarb
aPh.D. Scholar, UKA Tarsadia University, Bardoli, Surat, Gujarat
bAssociate Professor, Shrimad Rajchandra Institute of Management and Computer Application,

Surat, Gujarat.

ARTICLEINFO ABSTRACT
Keywords:
Consumer behaviour, Purpose – To investigate the factors affecting consumer’s
online shopping, online shopping behavior.
Internet shopping, Design/methodology/approach – A descriptive type of
Electronic commerce study using judgmental sampling for selecting the samples
from online shopping users of Kanpur city. The data has
been collecting with the help of questionnaire. The factor
analysis is performed for identifying the factors, the
nonparametric test has been used for hypothesis testing.
Findings – The study results suggest that consumers’
online shopping behavior is being affected by several
factors like demographic factors, social factors, consumer
online shopping experience, knowledge of using internet
and computer, website design, social media, situational
factors, facilitating conditions, product characteristics, sales
promotional scheme, payment option, delivery of goods and
after sales services plays an important role in online
shopping.
Research limitations/implications – The study results
cannot be generalized to the all online shopping users
because of small sample size and geographical location
from where data is collected. Future studies may also apply
some more statistical techniques to improve the
conclusiveness of the findings reported in this study.
Practical implications – The results should be of
interest to the online retailers in deciding their marketing
program.
Originality/value – The paper is based on original work,
the questionnaire has been found reliable after checking the
cronback Alpha value. The KMO values supports the
adequacy of sample size. It will help the academicians and
scholars in their research work in the form of a literature on
online shopping. It will also provide guidelines to online
retailers in making their marketing program.

Introduction
The online shopping has been growing rapidly in India. The online shoppers has been
increasing and their purchasing power increasing The annual spending power of Indian
consumers have been increasing, it is projected to be more than $1 trillion by 2021,
Available on SSRN-Elsevier
541

Electronic copy available at: https://ssrn.com/abstract=3308689

Factors Affecting Consumer’s Online Shopping Buying Behavior

driven by rising prosperity of emerging middle class people, whose population is

expected to grow to 570 million by the time, (PwC report, 2012). Internet services are
the backbone of online shopping, there will be 90 million 4G subscriber in India by 2018
(Bank of America Merrill Lynch (BofA ML) report, Oct, 2015). The online shoppers can
have over 30 million products across over 70 categories, including books, daily use
products, consumer electronics and lifestyle at the website of Flipkart. Amazon has also
increased its range of products from 18 million to 30 million and Snapdeals has been
offering over 15 million unique products, SBI Research. There are more than 150 online
shopping websites available in India providing goods and services directly to the
consumers. These e-retailers provides an electronic catalogue of products. The
consumer selects the products from their catalogue and purchases the product by
comparing it with other products. It has many advantages like global reach, variety of
products with required information, According to Taylor Nelson Sofres Interactive’s
“Global e-Commerce Report,” the worldwide increase in e-commerce activity is most
evident for certain product categories, such as books, music CDs, videos, electrical and
electronic goods, sports equipment, and toys, and for services such as consumer banking
and finance, and health information (Direct Marketing 2002). It saves time during the
purchasing of goods, because it eliminates the traveling time required to go to the
traditional store. Consumer can purchase products 24X7, it also provides products at
minimum possible price, and consumer gets offers and discounts on purchasing
products online. The consumers have set their mind to do online shopping due to the
discounts, gift, and quality factor in e-store. [Anders Hasslinger, (2007). Online
shopping also has some disadvantages like when we do not purchase goods after
searching it online then it results in wasting of time, it cannot be done without internet
connection and one electronic gadgets (computer and mobile), it required extra money
for arranging these two things. When we get faulty products, it takes time in reverse
pickup, replacement and refund process. The products cannot be touched and feel.
Online shopping websites also charge money for delivery of goods in some cases, online
shopping does not have delivery of goods in some regions. Many researchers have
conducted investigations for identifying the driving factors which affect consumer’s
online shopping behavior, what drive consumer’s to buy online? (Toñita Perea y
Monsuwé Benedict G.C. Dellaert Ko de Ruyter, 2004), What Makes Consumers Buy
from Internet? (Limayem, Khalifa, and Frini, 2000), Barriers to Online Shopping in
Switzerland (Rudolph, Rosenbloom, and Wagner, 2004)

Literature review
According to Said S. Al-Gahtani & Malcolm King (1999) relative advantage of the system
contributed most to attitudes and satisfaction. Compatibility (of the system to the task
performed) contributed most to usage and is the most important antecedent of the belief
variables, including relative advantage. They also advised that the usage-satisfaction
relationship is unclear and confusing and there is a strong positive correlation between
satisfaction and usage. They advocated that attitude is `more than’ a substitute for
satisfaction and that satisfaction should be used as a complement to usage when
evaluating end-users’ acceptance of computer technologies.

Available on SSRN-Elsevier
542

Electronic copy available at: https://ssrn.com/abstract=3308689

Factors Affecting Consumer’s Online Shopping Buying Behavior

According to Toñita Perea y Monsuwé Benedict G.C. Dellaert Ko de Ruyter, (2004)

attitudes toward online shopping and intention to shop online are not only affected by
ease of use, usefulness, and enjoyment, but also by exogenous factors like consumer
traits, situational factors, product characteristics, previous online shopping experiences,
and trust in online shopping.
According to Lakshmanan (2016) product preferences, problems faced by the
customers, more number of products with discount, risk perception and after sales
services are the factors which affects customer satisfaction towards online shopping.
According to Evanschitzky, Iyer, Hesse, Ahlert (2004) financial security of the
transactions convenience and site design are the most important factors affecting e-
satisfaction.
According to Szymanski & Hise (2000) consumer perceptions of online convenience,
merchandising (product offerings and product information), site design, and financial
security are dominating factors affecting e-satisfaction assessments.
According to Yooncheong Cho, Fjermestad and Hiltz (2003) perceived price,
information search effort, and ego involvement on the degree of dissatisfaction are
significantly affected by product category. They also investigated that the effect of the
degree of dissatisfaction on propensity to complain is significantly different based on
product category on the Web.
According to Sirrka L., Peter A. (1996) Product perceptions, shopping experience,
customer service, and perceived consumer risk are the factors affecting electronic
shopping on the World Wide Web.
According to Sang Yong Kim & Young Jun Lim (2001)) the factors of entertainment,
convenience, reliability, and information quality and speed plays important role in
customer satisfaction while shopping online.
According to Hausman, Siekpe (2008) Human factor (no. of visitors to site),
Entertainment, informative, irritation, usefulness, attitude towards website, revisit
intention are the important aspect of a good website and it affects consumer’s online
shopping buying behavior. According to Bai, Law, Wen (2008) website quality has a
direct and positive impact on customer satisfaction, and that customer satisfaction has a
direct and positive impact on purchase intentions.
According to Hasanov Jasur, Khalid Haliyana (2015) website quality is not the only
determining factors that could increase consumer purchasing intention. Other qualities
such as good customer service, efficient product distribution and logistics and also
positive reviews from customers also play an important role.
According to Nitish Singh Georg Fassott Mike C.H. Chao Jonas A. Hoffmann, (2006)
attitude toward using the web site is shown to have a strong impact on their intent to
purchase from these international websites.
According to Forsythe Sandra M., Shi Bo (2003) Internet shoppers perceive several
risks in Internet shopping, these perceived risks may not significantly influence Internet
patronage behaviors among current Internet shoppers in an extensive and systematic
way.

Available on SSRN-Elsevier
543

Electronic copy available at: https://ssrn.com/abstract=3308689

Factors Affecting Consumer’s Online Shopping Buying Behavior

According to Constanza Bianchi Lynda Andrews, (2012) perceived risk online had an
inverse relationship with consumers’ attitude and that attitude has a positive influence
on intentions to continue purchasing.
According to Juniwati (2014) perceived usefulness, ease of use and risk have significant
influence on attitude toward online shopping. Where perceived usefulness and ease of
use have not significant influence toward intention to shop online but perceived risk and
attitude have significant influence toward intention to shop online.
According to Hernandez Blanca, Jimenez Julio, Martin M. Jose (2008) self-efficacy and
usefulness are important perceptions in explaining the behaviour of experienced
consumers, while ease of use does not have a significant influence.
According to Azzam Al, Mahmoud Abdel Fattah (2014) perceived ease of use; perceived
behavioral control, attitude, and perceived usefulness are essential antecedents in
determining online consumer behavior and there is no significant relationships between
trust and online purchasing behavior.

Research Methodology
Respondents were selected from Kanpur city because it had convenience for the
researcher. The sample selected had at least one time online shopping experience. The
size of the sample selected was 162. A combination of Judgmental and snowball
sampling were used because of the list of the online shoppers was not available. The first
set of respondent was selected on the basis of judgement. Subsequently additional units
were obtained on the basis of information given by initial sample units and then further
referrals were taken from those selected in the sample. Total 250 questionnaires were
distributed out of that 175 was received and 13 questionnaires were found incomplete.
So only 162 questionnaires were selected finally for further analysis of data. The
structured questionnaire including dichotomous, multiple choice, and semantic
differential questions. All the differential questions are considered to be based on
interval scale. The arithmetic mean, standard deviation, reliability test based on
Cronbach’s Alpha value, factorial analysis were the statistical measures and test used for
data analysis.

Data Analysis
Frequency distribution of demographic variables
Table 1 was drawn to understand the socioeconomic background of the respondents and
it was found that out of the total sample (n=162) 77.8% consisted of male and 22.2% of
female. Further we have divided the age group in four categories and we found that
more than half (85.2%) of respondents were below 25 years of age, while (9.3%)
belonged to the age group of 25 to 30, (5.6%) respondents belonged to the age group of
30-35 years of age. We have categorized marital status in two categories i.e. un-married
and married and it was observed that more than half (88.9%) of respondents were un-
married and (11.1%) of them were married.
Available on SSRN-Elsevier
544

Electronic copy available at: https://ssrn.com/abstract=3308689

Factors Affecting Consumer’s Online Shopping Buying Behavior

We have categorized education level in five categories i.e. High school, intermediate,
bachelor, master, above master degree. It was observed around (63%) of respondents
were bachelor, (22.8%) were masters, (10.5%) having intermediate, (1.2%) having high
school and (2.5%) were having above master degree. We have categorized family
monthly income in three categories, It was observed around (80.9%) of respondents
were having less than ₹ 25000, (16%) were in income group 25000 to 50000, (3.1%)
were in income group of greater than 50000.
We have categorized occupation in three categories i.e. self-employed, employed and
student, it was observed that more than half (80.2%) of respondents were students,
(17.3%) of respondents were employed and (2.5%) of them were self-employed. We have
also categorized the frequency of shopping online of respondents in same four
categories i.e. daily, weekly, monthly and annually. It was observed that more than half
(63%) of respondents were having monthly, (16.7%) of
Table1: Demographic Profile of respondents
Respondent Frequency Percent
Male 126 77.8
Gender
Female 36 22.2
15-20 57 35.2
20-25 81 50.0
Age
25-30 15 9.3
30-35 9 5.6
less than 25000 131 80.9
Income 25000-50000 26 16.0
Greater than 50000 5 3.1
High school 2 1.2
Intermediate 17 10.5
Education Bachelor 102 63.0
Master 37 22.8
Above master degree 4 2.5
Married 18 11.1
Marital Status
Unmarried 144 88.9
Self employed 4 2.5
Occupation Student 130 80.2
Employed 28 17.3
Daily 7 4.3
Weekly 27 16.7
Frequency of shopping online
Monthly 102 63.0
Annually 26 16.0
Total 162 100.0
respondents were having weekly, (16.1%) of them were having annually and (4.3%) of
them were having daily online shopping.

Available on SSRN-Elsevier
545

Electronic copy available at: https://ssrn.com/abstract=3308689

Factors Affecting Consumer’s Online Shopping Buying Behavior

Measures
Reliability and validity assessment
The Cronbach's Alpha statistic was used to check reliability of the scale developed for
evaluations statements used in the questionnaire. The alpha coefficient for the 20
statement of questionnaire is .707 suggesting that the items have relatively consistency
see table-2.
Table-2: Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.661 .707 20
Exploratory Factor Analysis
KMO and Bartlett test of sphericity sign posted that the data was suitable for
exploratory factor analysis. As the KMO measures the sampling adequacy that should be
greater than 0.5 and it was 0.751 indicating that the sample was adequate to consider
the data suitable for factor analysis.
From the table 3, it can be observed that Bartlett's test of sphericity was 719.907
significant at 0.000 level of significance. It indicates that the correlation matrix was not
an identity matrix. The above facts show that the data collected on different attributes of
online shopping from respondents were suitable for factor analysis.
Table 3: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .751
Bartlett's Test of Approx. Chi-Square 719.907
Sphericity
df 190
Sig. .000

The raw scores of 20 items were subjected to Principal Component Analysis (PCA) to
identify the underlying factors that affect the consumer’s online shopping buying
behaviour. After the analysis, it was found that there were seven factors, with 61.361% of
cumulative variance explained through the exploratory factor analysis. Following are the
details of factors identified through EFA
Factor Eigen % Elements converged Factor
Value Variance Load
Customer The information given about the products and
0.739
satisfaction services on the internet is sufficient.
I do not mind paying in advance for the products on
0.696
the internet
4.61 23.048 I am satisfied with the customer services provided by
0.571
the online shopping
In my overall experience I am satisfied with online
0.562
shopping.
Online shopping Provides guarantee and warrantee 0.462
Availability of Online shopping is more expensive than sold in retail
-0.709
products store.
1.661 8.304
Online shopping provides variety of products for
0.457
purchase.

Available on SSRN-Elsevier
546

Electronic copy available at: https://ssrn.com/abstract=3308689

Factors Affecting Consumer’s Online Shopping Buying Behavior

Perceived Online shopping provides special offers/discounts for

0.697
usefulness purchase.
Large selection of products. 0.648
1.414 7.07
I am satisfied with the product tracking process
0.645
provided shopping.
Simplicity of purchase process 0.494
Easy refund and return policy 0.651
Prefer online shopping if online prices are lower than
0.641
Economic 1.307 6.533 actual price
Detailed description and information availability to
0.494
every product
Website Hidden charges causes confusion while purchasing
0.812
quality 1.074 5.369 product
Prefer more secured website 0.743
Online shopping is risky 0.420
Perceived risk 1.044 5.218
Hesitate to give my credit debit card number 0.843
Discussion and conclusions
In this study we found that there are seven factors that affect consumer’s online
shopping buying behaviour. These factors are perceived ease of use, perceived risk,
perceived usefulness, effect of website design, Economic factor, availability of products,
and customer satisfaction.

Limitation and future research

A limitation of this study lies with the sample size and in the age distribution of the
sample used in this study. Sample size 162 is small and approximately 50 percent of
sample was in the age group of less than 25 years, thus, the results may not be
generalized for consumers over age of 30- 35.We can develop regression model on the
basis of the findings of this study. The geographical area for this study was Kanpur
region only.

References
Anders Hasslinger, (2007). Consumer Behaviour in Online Shopping. Dissertation, Kristianstad
University, Sweden, Retrieved from http://www.diva-
portal.org/smash/get/diva2:231179/fulltext01
Merrill Lynch (BofA ML) (Oct, 2015). Asia Pacific: Treasury in Transition, report. Bank of
America
Azzam Al, Mahmoud Abdel Fattah (2014). Evaluating the antecedents of online consumer
purchasing behavior an empirical study based on theory of planned behavior.
International Journal of Economics, Commerce and Management, Vol. II, Issue 4, pp.
1-18.
Bai Billy, Law Rob, Wen Ivan (2008). The impact of website quality on customer satisfaction
and purchase intentions: Evidence from Chinese online visitors. International Journal
of Hospitality Management 27, pp. 391–402.
Constanza Bianchi Lynda Andrews, (2012). Risk, trust, and consumer online purchasing
behaviour: a Chilean perspective. International Marketing Review, Vol. 29 Iss 3 pp. 253
– 275.

Available on SSRN-Elsevier
547

Electronic copy available at: https://ssrn.com/abstract=3308689

Factors Affecting Consumer’s Online Shopping Buying Behavior

Evanschitzky Heiner, Iyer Gopalkrishnan R, Hesse Josef, Ahlert Dieter (2004). E-satisfaction: a
re-examination. Journal of Retailing Vol. 80 (2004) pp. 239–247.
Forsythe Sandra M., Shi Bo (2003). Consumer patronage and risk perceptions in Internet
shopping. Journal of Business Research 56, pp.867– 875.
Hasanov Jasur, Khalid Haliyana (2015). The Impact of Website Quality on Online Purchase
Intention of Organic Food in Malaysia: A WebQual Model Approach. Procedia Computer
Science 72, pp. 382 – 389.
Hausman Angela V., Siekpe Jeffrey Sam (2009). The effect of web interface features on
consumer online purchase intentions. Journal of Business Research 62, pp. 5–13.
Hernandez Blanca, Jimenez Julio, Martin M. Jose (2009). The impact of self-efficacy, ease of
use and usefulness on e-purchasing: An analysis of experienced e-shoppers. Interacting
with Computers 21, pp. 146–156.
http://www.theshopaholic-diaries.com/2011/10/to-z-online-shopping-websites-india.html
Juniwati (2014). Influence of Perceived Usefulness, Ease of Use, Risk on Attitude and Intention
to Shop Online. European Journal of Business and Management, Vol.6, No.27 pp.218-
228.
Lakshmanan, A. (2016). Customers Satisfaction towards Online Shopping in Amazon.Com–A
Study with Reference to Udumalpet Taluk. International Journal of Recent Research
and Applied Studies, Vol. 3, 12(16), pp. 68-74.
Nitish Singh Georg Fassott Mike C.H. Chao Jonas A. Hoffmann, (2006). Understanding
international website usage: A cross-national study of German, Brazilian, and Taiwanese
online consumers. International Marketing Review, Vol. 23(1), pp. 83 – 97.
Said S. Al-Gahtani & Malcolm King (1999). Attitudes, satisfaction and usage: Factors
contributing to each in the acceptance of information technology. Behaviour &
Information Technology, 18(4), 277-297.
Sang Yong Kim & Young Jun Lim (2001). Consumers' Perceived Importance of and Satisfaction
with Internet Shopping. Electronic Markets, 11(3), pp. 148-154.
Sirrka L. Jarvenpaa, Peter A. Todd (1996). Consumer Reactions to Electronic Shopping on the
World Wide Web. International Journal of Electronic Commerce, 1(2), 59-88.
Szymanski David M., Hise Richard T. (2000). e-Satisfaction: An Initial Examination. Journal of
Retailing, Vol. 76(3) pp. 309–322.
Thomas Rudolph, Bert Rosenbloom & Tillmann Wagner (2004). Barriers to Online Shopping in
Switzerland. Journal of International Consumer, Marketing, 16(3), 55-74.

Toñita Perea y Monsuwé Benedict G.C. Dellaert Ko de Ruyter, (2004). What drives consumers
to shop online? A literature review. International Journal of Service Industry
Management, Vol. 15(1), pp. 102 – 121.
Yooncheong Cho II Im Jerry Fjermestad and Starr Roxanne Hiltz, (2003). The impact of
product category on customer dissatisfaction in cyberspace. Business Process
Management Journal, Vol. 9(5), pp. 635 – 651.

Available on SSRN-Elsevier
548

Electronic copy available at: https://ssrn.com/abstract=3308689