Consumer Expectation from Online Retailers in Developing E-commerce Market: An Investigation of Generation Y in Bangladesh

Abstract

This paper aims to investigate the expectation from online retailers in the context of Generation Y, as the target market group in Bangladesh. It also examines the similarities and dissimilarities between the global online retail market trend and the target group. Volunteer final year university students conducted face to face survey using structured questionnaires. Primary data was collected using paper-and-pencil method where interviewee completed the form in most of the cases. This research found differences between the expectations of consumers from online retailers and the online market trend in developed countries. Existing issues and directions for future online businesses have been discussed. Most of the males want to purchase 'Clothing and footwear' online, whereas 'Jewelleries and Watches' is the most desired online product category by females. Two third of Gen Y in Bangladesh is already shopping online with high interest in F-commerce. Online shopping abandon rate is high due to service quality issue. Lowering internet cost is driving the e-commerce growth. 450 Gen Y respondents living in the capital have been surveyed, where internet service is optimum. Larger population from different age groups with different backgrounds, living in different cities can be examined in future. Need for reliable delivery service to support e-commerce growth, cash on delivery options, addition of Skype and Viber in customer service and success stories of Facebook stores have been revealed for the consideration of the existing and future market entrants. The findings should work as a guide for the international investors and MNCs. This study is the first of its kind in the context of Bangladesh and sets a benchmark. This research opens the door for continuous evaluation of the market and to venture new business and services as per consumer expectations.

Optimizing Digital Marketing for Generation Y: An Investigation of Developing Online Market in Bangladesh

“…Not surprisingly Facebook tops the list. Similar to earlier study in the similar setup (Rahman, 2015), WhatsApp, Viber and Skype are found to be heavily used by all age groups and gender, but more by younger ladies and elder men. It seems Pinterest is gaining popularities among younger female group (age 18-25).…”

“…Self-administered paper-and-pencil intercept survey deemed appropriate for the purpose of this research as the target group is young adults (De Vries & Carlson, 2014). Similar to recent Gen Y study by Rahman (2015), final year students at BRAC University volunteered for the survey. Initial screening found their birth year is between 1991 and 1994.…”

“…Understanding the information delivery channel is not only important for socio-cultural and globalization reasons but also for the commercial purpose. Internet penetration from mobile devices is increasing in Bangladesh and the lowering internet bandwidth and device cost is the key reason driving the change (Rahman, 2015;Taher, 2015). Also recent affiliation between local telecommunication organization Grameenphone (GP) and the world's largest NGO BRAC to provide smart mobile handset with internet access for a year may have a strong impact on the digital media access from rural areas in Bangladesh (Grameenphone, 2015a(Grameenphone, , 2015b.…”

“…Digital media attracts consumer due to its interactive nature which also help the brands to visualize consumer preferences. Flow of such data should help brands to co-create products and services which is one of the key value that attracts Gen-Y (De Vries & Carlson, 2014;Rahman, 2015).…”

“…Latest Internet World Stats (2015) of Bangladesh presents that 26.4% of the population already have access to internet as of 14 June 2015 and Facebook.com tops the list of most accessed online service (Alexa, 2015). Bangladesh has a young population and the recent study by Rahman (2015) examined the expectations of Generation Y (Gen Y) from online retailers in Bangladesh. The findings of that research provide a direction to the market to invest in online retail ventures which are in demand by the target group i.e.…”