Factors Determining Italian Online Shoppers’ Preference of Cash on Delivery: Empirical Analysis

Abstract

In recent years, there is a significant expansion of online-shopping which creates the need for a thorough marketing analysis of online customer behavior. The study examines the factors influencing Italian online shoppers' preferences of a particular payment method, precisely, it investigates the use of cash-on-delivery as a preferred payment method among Italian online shoppers. We consider both the impact of online shopping trends of the population and the impact of the determinants affecting e-shop preferences on cash-on-delivery preference while shopping online. Research based on primary data obtained through a self-administered questionnaire among Italian online shoppers revealed that improving e-shop's reputation and online support leads to a decrease in the probability of using cash-on-delivery as a payment method.

Critical factors influencing online consumer preference towards cash on delivery method in Sri Lanka

“…This research has revealed that perceived security, privacy, and trust have a significant influence on the customers' intention to adopt a COD payment method. Further, this study found few important facts regarding the COD payment method such as an increase of the frequency of online shopping leads to a slight increase in using cash-ondelivery as a payment method, the more important the factor of the online seller's reputation is, the lower the likelihood of preference for a COD payment method and local origin of the online seller increases the preference COD payment method (Pencarelli, et al, 2018). Polasik & Fiszeder (2010) analyzed factors influencing the acceptance of the seven major payment methods by the polish managers of online shops and the results of this study demonstrated that a shop's strategy of using traditional and electronic distribution channels, preferences of online shop managers, the involvement in online auctions and cross-border sales have significant influences on its acceptance of particular payment methods.…”

“…All the major logistics and courier companies over the world serving direct end-customers through E-commerce deliveries consider cash on delivery management as a key transaction method that has sustained its popularity, notwithstanding multiple payment options gaining ground. "This is sometimes called "post-payment" system because the customer receives goods before making a payment" (Pencarelli, et al, 2018). It has been statistically proved that E-commerce stores that offer COD services attract more online buyers than the ones who are limited to online payment gateways (courier.lk, 2020).…”

“…"In the context of demonetization E-commerce giants like Amazon and Flipkart took no time to stop their cash on delivery options and educated their customers about the benefits of e-cash payments" (Jana, 2017). Pencarelli, Skerhakova, Taha, & Valentiny (2018) conducted a study to determine the factors affecting Italian online shoppers in their primary payment method preferences whenever the COD payment option is available. This research has revealed that perceived security, privacy, and trust have a significant influence on the customers' intention to adopt a COD payment method.…”

“…The main objective of the study was to investigate the critical factors that impact E-commerce customers' preference of cash on delivery method in Sri Lanka. As a result of the literature review, the potential research hypotheses for this study were initially identified from a study done by Pencarelli, Skerhakova, Taha, & Valentiny (2018). Additionally, a few new hypotheses were also developed reviewing the content of E-commerce websites.…”

“…The methodology followed by Pencarelli, Skerhakova, Taha, & Valentiny (2018) and Kumar, Singh, & Modgil (2020) was mainly referred to to develop the methodology for this study. The data collection was conducted through a self-administered questionnaire which was distributed electronically.…”