Determinants of Internet Buying Behavior in India

Abstract

Internet penetration in India has become more widespread on account of easy payment options, reduced hardware prices, faster and cost effective internet communication, and reliable technology. Internet applications such as emailing, e-banking, e-gaming, travel and entertainment bookings have become part and parcel of the growing tech-savvy population in India. Although new business models focusing on e-retailing are providing exciting services to satisfy e-consumers' demands, the Indian internet retail market is far behind its expected potential. It therefore becomes imperative to assess the important determinants of internet buying behavior. There has been a very limited research to study the internet shopping behavior and factors responsible for determining online purchase intentions in India. The aim of this research is to provide a view of the various demographic and psychographic factors influencing consumer's willingness to purchase online. A new model based on Technology Acceptance Model (TAM) has been developed for the purpose of this research which incorporates consumer demographic factors and Perceived risk along with other TAM variables to explain the consumer acceptance of online shopping. The findings are expected to hold value for internet retailers as these are the simplest segmenting descriptors which will guide them in generating more effective business strategies for their organizations. Overall, this study seeks to provide productive insights into the factors determining the prospects of internet retailing in the country.

The Changes in Online Buying Intention as a Determinant of Behavior During COVID-19 Pandemic in the Ready-Made Garments Industry in Egypt

“…Both factors classify the target consumer segment of this study. Also, higher income and higher positions were associated with more awareness of technology and more purchasing power (Nayyar & Gupta, 2011). The level of income implies having the privilege of shopping while education level and PC literate factors qualifies the ability to use online shops.…”

“…Online shopping framework by Vazquez & Xu (2008) In figure 13, Nayyar & Gupta (2011) studied the following variables, Demography, perceived usefulness, perceived ease of use, perceived risk as determinants of internet buying behavior. Given the demographics, it was found that the gender differences have an effect; "The findings of this study have revealed a higher number of male internet shoppers than females" (Nayyar & Gupta, 2011). In addition to the introduction of a new parameter to classify and segment the consumers as PC literate and illiterate, therefore, the PC illiterate are out of scope of this study.…”

“…In addition to the introduction of a new parameter to classify and segment the consumers as PC literate and illiterate, therefore, the PC illiterate are out of scope of this study. The PC literate population with higher exposure and awareness of the internet were considered in this study with significance with the education level (Nayyar & Gupta, 2011). PC literate consumers can be considered of a minimum education level, however as the education level increases, there's no more significant effect.…”

“…The level of income implies having the privilege of shopping while education level and PC literate factors qualifies the ability to use online shops. As for the "Perceived ease of use on the other hand, indicates how the users perceive the ease of using the technology" (Nayyar & Gupta, 2011). This has been reflected in the Ease of use factor in the conceptual model in terms of convenience, availability, accessibility and payment method.…”

An Empirical Study on the Factors Affecting Online Retail Brand Engagement and Purchase Intention

“…This study has several managerial implications. In recent times, researchers have tried to explore the different dimensions of online marketing relating to Indian context (Mahapatra & Sreekumar, 2012;Nayyar & Gupta, 2011;Sahney, Ghosh & Shrivastava, 2013;Thamizhvanan & Xavier, 2013) but they have restricted their study within the economic value and functional advantages. There have been no such empirical evidences that can portray process in knowing how the Online Retail Brand Engagement can be strategically created to support the Final Brand Selection and Purchase Intention of the potential customer at Indian online marketplace.…”