A Study on Consumer Behaviour Towards Online Shopping
A Study on Consumer Behaviour Towards Online Shopping in Kottayam Municipality was submitted by Bijil Jacob Biju (from the Bishop Speechly College For Advanced Studies Pallom, Kottayam) to extrudesign.com .
1. INTRODUCTION
In addition to the tremendous potential of the E-commerce market, the internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumers commerce should not lose confidence. It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain and improve insight into consumer behavior from different perspectives. Many of the studies have cost new emergent factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the internet context.
ONLINE SHOPPING IN INDIA
Changing attitude towards online shopping.
“Awareness, Future Demand Focus for Emerging Markets & current issues” Malls springing up everywhere, and yet people are E-shopping! And not in small numbers either. Consumers are more rational nowadays and can get choices from the market. Awareness among consumers is spread through the internet. The number of internet users is increasing day by day which attracts people who have an option to buy online. It was never thought that Indians would go in for E-shopping in such a big way. Ticketing, travel bookings, and even books and movies seem fine to buy online. Knowing that in India sizes vary from brand to brand and quality is inconsistent, even of some electronic items, how is it that people are buying these items online? In India, there are some segments of people who have not yet tried purchasing over the internet.
Convenience
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Information and reviews
Home delivery concept.
In any case, home delivery is a concept that Indians are familiar with and love. The mall craze has started only now. Earlier it was a choice between setting it out in small crowded markets or asking a friendly neighborhood Kirana (grocer) to deliver groceries home and this system is still thriving.
1.1 Statement of the problem
Since online retailing is a new retailing medium and online consumer behavior is diverse from traditional consumer behavior, one must identify what influences the online consumer. Analyzing the process that the online consumer goes through when deciding and making a purchase over the internet, shows some factors that consumers consider. These factors need to be identified and taken into account by online retailers to satisfy consumer demands and compete in the online market.
1.2 SCOPE OF THE STUDY
1.3 objectives of the study, 1.4 methodology, 1.4.1 sample size.
Samples were collected from consumers and buyers of online shopping in the Kottayam Municipality region. The sampling size is 50, the sampling technique used for the study is Random Sampling.
1.4.2 SAMPLE DESIGN
1.4.3 collection of data, primary data , secondary data , 1.4.4 tools of analysis and presentation.
The collected data has been analyzed and interpreted by using different statistical tools such as percentages, pie charts, bar charts, etc.
1.4.5 LIMITATIONS OF THE STUDY
2. review of literature and theoretical framework, 2.1 review of literature, introduction.
Whether it is the traditional market or the online market, the marketer must understand the consumer and how he makes his decisions and purchasing choices (Hollensen, 2004), because the consumer is under a constant flow of stimuli from the marketer’s advertisements. The marketer can decide and control the output that will be forwarded to the consumers, but when the advertisement reaches the consumer that control ends. The consumer then interprets the information that has been sent out in his way based on specific factors for every consumer. Therefore marketers have developed different theories that can explain why consumers interpret information in a certain way, and thereby understand certain behaviors (Kotler & Armstrong, 2007). Several articles have set out to identify the characteristics of the online consumer. Allred, Smith, and Swinyard (2006) identify the online consumer to have the following characteristics: younger, wealthier, better educated, having a higher “computer literacy” and are bigger retail spenders. Donuthouand Garicia (1999) identify the online consumers: older, make more money, convenience seeker, innovative, impulsive, variety seeker, less risk-aware, less brand and price-conscious, and with a more positive attitude towards advertising and direct marketing. Some of these characteristics are similar, while others are the opposite.
2.2 THEORETICAL FRAMEWORK
Meaning of consumer behaviour.
The study of consumer behavior formally investigates individual qualities such as demographics, personality lifestyles, and behavioral variables (such as usage rates, usage occasion, loyalty, brand advocacy, and willingness to provide referrals), in an attempt to understand people’s wants and consumption patterns. Also investigated are the influences on the consumer, from social groups such as family, friends, sports, and reference groups, to society in general (brand-influencers, opinion leaders).
DEFINITION OF CONSUMER BEHAVIOUR
According to Louden and Bitta, ‘consumer behavior is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services
FACTORS AFFECTING CONSUMER BEHAVIOUR
3. industrial profile, 3.1 history of online shopping.
Online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, Internet shop, web-shop, web-store, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping center. The process is called business-to-consumer (B2C) online shopping. When a business buys from another business it is called business-to-business (B2B) online shopping.
Revolutionary book by J.H. Snider and Terra Ziporyn namely; Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martin’s Press.
The United States started selling Electronic postal stamps online wherein they could be purchased and downloaded for print.
The dot-com bust as we know it today wasn’t something that happened in a day, over speculation for some time (approx. 1995-2000) where just the prefix “e-” or “.com” in names could make stock prices rise at great rates. This saw a great many companies rise and fall.
The tremendous growth in the US in eCommerce with sales figures touching $204 billion, a decent 17% rise from the previous year.
3.2 ONLINE SHOPPING SITES
I. snapdeal.com.
Snapdeal.com serves as an advertising platform for merchants and a discount platform for customers. For the merchants who partner wily Snapdeal, it is a cost-effective channel for acquiring new customers. It also works as a risk-free alternate marketing channel. From the merchant’s standpoint, they are passing on the customer acquisition cost in the form of a discount offer.
PRODUCT CATEGORIES PROVIDED BY SNAPDEAL.COM
Terms of sale, website terms of use, privacy policy, ii. amazon.com.
Amazon.com is an American multinational electronic commerce company with headquarters in Seattle, Washington, United States. It is the world’s largest online retailer. The company also produces consumer electronics – notably the Amazon Kindle e-book reader – and is a major provider of cloud computing services.
PRODUCT CATEGORIES PROVIDED BY AMAZON.COM
Please refer to the Terms and conditions at www.amazon.com
III. EBAY.COM
Product categories provided ebay.com, iv. flipkart.com.
Initially, they used word-of-mouth marketing to popularize their company. A few months later, the company sold its first book on flipkart.com- John Wood’s Leaving Microsoft to Change the World. Today, as per Alexa traffic rankings, Flipkart is among the top 30 Indian websites and has been credited with being India’s largest online bookseller with over 11 million titles on offer. Flipkart broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding. The store started with selling books and in 2010 branched out to selling CDs, DVDs, mobile phones and accessories, cameras, computers, computer accessories, and peripherals, and in 2011 pens and stationery, other electronic items such as home appliances, kitchen appliances, personal care gadgets, health care products, etc. Further in 2012, Flipkart added A.C, Air coolers, School supplies, Office supplies, Art supplies & lifestyle products to its product portfolio. Today, Flipkart employs over 4500 people.
PRODUCT CATEGORIES PROVIDED BY FLIPKART.COM
4. data analysis and interpretation .
Figure 4.1
Figure 4.2
Table 4.3
Interpretation
Figure 4.4
Figure 4.6
Figure 4.7
Figure 4.8
Figure 4.8.1.1
Figure 4.8.1.2
From the above table and figure, the researcher can say that 61% do not prefer any specific retail outlet for purchase and 39% of respondents prefer some retail outlet for purchase.
Figure 4.8.2.1
Figure 4.8.2.2
Figure 4.8.2.3
Table 4.8.2.4
Table 4.8.2.5
5. Findings, Suggestion And Conclusion of the Study on Consumer Behaviour Towards Online Shopping
Findings of the study on consumer behaviour towards online shopping.
The major findings of the study on Consumer Behaviour Towards Online Shopping are:
BIBLIOGRAPHY
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Consumer buying behavior towards online shopping: An empirical study on Dhaka city, Bangladesh
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- https://doi.org/10.1080/23311975.2018.1514940
1. Introduction
2. methodology, 3. literature review, 4. findings and discussion, 5. conclusion, additional information, research article.
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The World Wide Web has propelled in no small extent of changes in the attitude and behavior of people all over the world. Due to this blessing, online shopping has emerged which influenced the lives of ordinary citizens. Online shopping has also been started in Bangladesh, but consumers are not much habituated yet to go online shopping frequently. This study is undertaken to understand the behavior of online shoppers through a self-constructed questionnaire of 160 respondents from Dhaka city. The survey reveals that consumers shop online to save time, and for available varieties of products and services. Both male and female both have the same type of behavior towards liking and disliking factors; they like home delivery facility and dislike inability to touch and feel the product most. They acquire online shopping information from websites especially from the social network and purchase apparels, accessories mostly through cash on delivery method of payment. The most of the consumers are concern about the security of the payment system, and their overall online shopping satisfaction is mixed.
- online shopping
Online shopping is the easy solution for busy life in today’s world. In the past decade, there had been a massive change in the way of customer’s shopping. Despite consumers’ continuation to buy from a physical store, the users or buyers feel very convenient to online shopping. Online shopping saves crucial time for modern people because they get so busy that they cannot or unwilling to spend much time shopping.
In the twenty-first century, trade and commerce have been so diversified that multichannel has taken place and online shopping has increased significantly throughout the world (Johnson, Gustafsson, Andreassen, Lervik, & Cha, Citation 2001 ). Globally, e-commerce constituted about 2.29 trillion dollar market (John, Citation 2018 ) and expected to reach 4 trillion dollar by 2020 (eMarketer, Citation 2016 ) due to the double-digit worldwide growth in sales (15%) and order (13%) (eMarketer, Citation 2018 ) in all sorts of e-commerce such as business-to-business (B2B), business-to-consumer (B2C) (Zuroni & Goh, Citation 2012 ).
Asia Pacific region is leading the growth of online shopping as compared to the mature market such as the US, UK, Japan and European Countries. The Asia Pacific recorded massive growth, especially in China. In 2016, Asia Pacific region made about $1 trillion in online sales and majority came from China constituting about $899 billion (eMarketer, Citation 2016 ). With more and more consumers become increasingly familiar with the Internet and its benefit, online shopping is becoming popular and getting preference among a group of consumers seeking better value proposition regarding information, convenience, cost, choice. Like other young Asian citizens, youngsters in Bangladesh are experimenting with new ways of shopping that have led to the popularity and growth of online shopping in Bangladesh.
Unlike a physical store, all the goods in online stores described through text, with photos, and with multimedia files. Many online stores will provide links for much extra information about their product. On the other hand, some online consumers are an adventurous explorer, fun seeker, shopping lover, and some are technology muddler, hate waiting for the product to ship. Consequently, online consumer behavior (user action during searching, buying, using products) became a contemporary research area for an increasing number of researchers to understand this unique nature of online shopping.
The primary goal of a business is to offer product and services that best serve their consumer needs. A business which fulfills the customer needs with satisfaction very well is more successful than its competitors as satisfied buyers tend to make a repetitive purchase. Moreover, in Bangladesh, online shopping has been evolving fast and has the potential to grow exponentially in time to come, as Internet penetration reaches far and wide across the rural areas. However, it is also true that Bangladeshi people are traditionally conservative in their approach to shopping due to modernization and fast-paced life, dependence on online shopping will increase. Thus, the purpose of this study is to understand the consumer behavior towards online shopping, their liking, disliking, and satisfaction level.
To understand the consumer behavior of newly launched online shopping in Bangladesh, we have undertaken a descriptive study through a survey by forming a self-constructed questionnaire considering the research objective. A Likert five-point scale ranging from strongly agree to strongly disagree been used to collect a quick response from the respondents.
Convenient non-probability sampling method has been adopted in this study to acquire data from respondents in Dhaka city where about 50% e-commerce customers reside (Jagonews24.com., Citation 2015 ) in Bangladesh. A convenient sampling method is easy to implement and cost-effective and more common in IS research that gets higher response rate (Eze, Manyeki, Yaw, & Har, Citation 2011 ; Ritchie, Lewis, Nicholls, McNaughton, & Ormiston, Citation 2014 ). We have targeted 200 respondents belong to different age-group, student, service holder, business person and the homemaker with various experience in online shopping for a personal interview and 179 participated in the survey resulting in 90% response rate. However, after sorting 160 useful and valid responses were used for further analysis. Accumulated data were analyzed through Microsoft Excel.
Online shopping indicates electronic commerce to buy products or services directly from the seller through the Internet. Internet-based or Click and Order business model has replaced the traditional Brick and Mortar business model. More people than before are using the web to shop for a wide variety of items, from house to shoes to airplane tickets. Now people have multiple options to choose their products and services while they are shopping through an online platform.
Online shopping has unique characteristics. Huseynov and Yıldırım ( Citation 2014 ) emphasized that the lack of physical interaction tends to be the critical impediment in online retail sales followed by the privacy of individual information and security of financial transactions over the Internet. Demangeot and Broderick ( Citation 2010 ) also revealed that perceived ease of use does not affect the behavioral pattern in this case rather influenced by security and privacy issues. No relationship is built between the customer and the online shop in the presence of perceived online risk even if a customer spent hours on the Internet (Zuroni & Goh, Citation 2012 ).
Day-by-day taste, preference and choices are varying regarding different factors such as the Internet emergence. However, this development needs some more understanding related to the consumer’s behavior. Consumer behavior research identifies a general model of buying behavior that depicts the processes used by consumers in making a purchase decision (Vrender, Citation 2016 ). Those designs are paramount to the marketer as they can explain and predict consumer purchase behavior.
Jarvenpaa, Todd, Jarvenpaa, and Todd ( Citation 1997 a) proposed a model of attitude, behavior, and shopping intention towards Internet shopping in general. The design includes several indicators classified into four broad categories like product value, quality services offered through the website, the shopping experience, and the risk perception of the online shopping. Chang, Cheung, and Lai ( Citation 2005 ) studied categories of variables, which drive online shopping activity. In their study, they divided the features into three broad categories. Perceived characteristics of the web sale channel are the first one which includes risk, online shopping experiences, advantage, service quality, trust. The second category is a website and product features which are risk reduction measures, site features, and product characteristics; and the last group is consumer characteristics. Various types of features, demographic variables, consumer shopping orientations, consumer innovativeness and psychological variables, computer, Internet knowledge, and usages drives consumer characteristics.
Consumer attitudes toward online shopping usually been determined by two factors; one is trust, and another is perceived benefits (Hoque, Ali, & Mahfuz, Citation 2015 ). Therefore, trust and perceived benefits seem to be the critical conjectures of consumer behavior toward online shopping (Al-Debei, Akroush, & Ashouri, Citation 2015 ; Hajli, Citation 2014 ). Moreover, information quality, merchandise attribute, website design, transaction capability, payment, security/privacy, delivery, self-consciousness, state of mind, the consumer’s time sense and customer service are strongly predictive of online shopping satisfaction (Katawetawaraks & Wang, Citation 2011 ; Liu, He, Gao, & Xie, Citation 2008 ; Mudambi & Schuff, Citation 2010 ; Novak, Hoffman, & Yung, Citation 2000 ; Shergill & Chen, Citation 2005 ; Sorce, Perotti, & Widrick, Citation 2005 ).
In Malaysia, information quality and purchase quality linked with the post-purchase quality are statistically significant in the case of customer satisfaction (Vegiayan, Ming, & Harun, Citation 2013 ). However, brand image and quality of products, goodwill of country of origin also influence significantly on purchase intention of online products (Haque et al., Citation 2015 ). Moreover, online data extraction about the products, services along with the historical data for individual customers is ingredient element to choose an online store or make re-purchase decision (Liao, Chu, Chen, & Chang, Citation 2012 ).
Koufaris ( Citation 2002 ) identified that both shopping enjoyment and perceived usefulness (website) strongly predict the intention to re-purchase over online. On the contrary, Lee and Lin ( Citation 2005 ) found shopping enjoyment can increase the intent of new customers but does not influence customers to return. In fact, the web store which utilizes value-added mechanisms in the search engine and providing customers a challenging experience may increase customers’ shopping enjoyment. Furthermore, if there are more often customers back to the web store, their shopping enjoyment then be determined by their involvement with the product (Marios Koufaris, Kambil, & LaBarbera, Citation 2001 )
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Table 1. previous study results of consumer behavior of online shopping, table 2. advantages of online shopping, table 3. disadvantages of online shopping, 3.1. advantages of online shopping, 3.2. disadvantages of online shopping.
Despite the success of buying through online shopping store, there are still some difficulties that most people always complain. Those are giving in the following table:
3.3. Overview of online shopping in Bangladesh
Increasing diffusion of ICTs especially the Internet forcing the global business community to move towards e-business. Online shopping gives consumers the access to the world market, enabling them to compare price across the region and various sites, find out whether price varies by order fragmentation, get awareness about alternative products (Jagonews24.com., Citation 2015 ). Consequently, the sellers ensure that they portrayed themselves in the cyber world through websites and portals. The sellers like consumers also benefit from the increase and more efficient access to the global market through the Internet.
Over the last several years, UNCTAD (United Nation Center for Trade and Development) has emphasized the importance of e-commerce, especially online shopping for developing countries (UNCTAD, Citation 2017 ). To facilitate developing countries to transition into all sectors of e-commerce, UNCTAD has special programs. UNCTAD has also developed rules and guideline for all types of a global e-commerce transaction. The private sector in Bangladesh should be well prepared to meet the requirement and expectation of the customer and also stand out in the competition against rivals from home and abroad because of increasing globalization (Khan, Citation 2014 ).
In such a scenario, businesses need to automate their internal processes with those of ICTs to become increasingly competitive and efficient in a global context. Also, businesses have to have adequate presence and participation in the cyber world. Particularly, these two issues are becoming essential for Bangladeshi corporate sector ( Dhaka Tribune , Citation 2015 ).
3.3.1. Emergences of online shopping in Bangladesh
Although e-Commerce operation first started in late 90s to deliver gifts to Bangladeshi friends and family members by NRBs (Mohiuddin, Citation 2014 ), the first real local e-commerce or m-commerce operation was launched by CellBazaar.com in 2006 through WAP service accessed only by mobile phones (Zainudeen, Samarajiva, & Sivapragasam, Citation 2011 ).
The growth rate of e-commerce was prolonged in Bangladesh from 2000 to 2008. During that period, there were some e-commerce websites, but there was no system for an online transaction (Mahmood, Citation 2015 ). Hardly few people knew about those sites for the high cost of Internet, telephone connections, few credit card holders (Hasan, Citation 2014 ) and lower penetration rate. The opening up of online payment systems, mobile payment systems, inter-banking payment gateways in the 90s by Bangladesh Bank propelled the growth of e-commerce in Bangladesh.
Table 4. Internet usages and population statistics
Table 5. the internet subscribers, table 6. gender of the respondents.
According to BTRC, the total number of Active Internet subscriber has reached 62.004 million at the end of April 2016.
There is an increasing maturity in the way Bangladeshi people use the Internet. It is a standard curve. The online user typically starts by using email, social networking gradually moves on to browsing for news, information, entertainment, and finally, graduate to do shopping and conducting business online (Khan, Citation 2014 ). In the UNCTAD ( Citation 2017 ) B2C e-commerce index report, Bangladesh achieved the rank of 103 among 144 countries studied; however, Bangladesh is also in the biggest annual index ranking changing status (more than 10%).
Today there are more than 7000 e-commerce firms are operating through the website and social media and among these most dominating are chaldal.com, ekhanei.com, bikroy.com, rokomari.com pickaboo.com and daraz.com (Islam, Citation 2017 ). Interestingly, those trends are not limited only to Dhaka, the capital city, but semi-urban and to an extent, rural areas as well ( Dhaka Tribune , Citation 2015 ). There are about 2.55 million online shoppers, who are about 2% of the total population of Bangladesh (UNCTAD, Citation 2017 ). Internet users in Bangladesh spend over Tk 7184.018 crore in online shopping each year. A Google research paper titled “Research Insight: Emerging Trend as Bangladesh goes Digital” found that 22% of the countries total Internet users shop online and spend Tk 7594.10 annually on an average ( Dhaka Tribune , Citation 2015 ).
According to the study of Kaymu.com in 2015 (Jagonews24.com., Citation 2015 ), Dhaka (35%), Chittagong (29%), and Gazipur (15%) are the primary zone for online shopping traffic of Bangladesh. Of the total traffic, new online shopping visitor stands at 49%, while returning visitor is 51%. 71% of online shoppers have used either a desktop or a laptop, followed by mobile phone and tablets. Google and Facebook are primary click-through points for online shoppers. About 69% of the online shoppers use the Windows operating system for online shopping.
Observing the popularity, foreign investors are coming to the Bangladeshi market, for example, recently Chinese giant Alibaba group bought daraz.com and bKash – a mobile payment system to operate in Bangladesh (Ovi, Citation 2018 ). However, analyzing customer behaviors is crucial especially in the case of online shoppers who do not get the touch and feel of the actual product during purchase. The findings of this research may shed light on this issue.
4.1. Demographics of the respondents
The respondents were categorized into several factors, such as gender, age, occupation, income.
4.1.1. Gender
Among the respondents, we found 62.5% were male, and 37.5% were female (see Table 6 ).
Figure 1. Age of the respondents.
4.1.3. Occupation
Figure 2. Occupation of the respondents.
4.1.4. Income
From Figure 3 we can see that nearly 54% interviewees’ average monthly income fall into Tk. 0–10,000 categories, 15.62% respondents’ monthly income was into Tk. 10,001–20,000, 14.38% earn Tk. 20,001–30,000, and 16.88% of the interviewees have more than Tk. 30,000 income per month.
4.1.5. Experiences of online shopping versus online shopping frequencies
About 41.88% of the respondents have less than 0–1 years’ experience of online shopping, 36.25% of them have 1–2 years’ experiences, 14.37% of them have 2–3 years’ experiences and 7.5% of the respondents have experiences in online shopping for more than 3 years. Among those respondents, 57.5% of them occasionally shop online, 28.75% do shop once every month, 10% of the respondents shop online fortnightly, and only 3.75% of them buy online weekly.
Figure 3. Income of the respondents.
Figure 4. Experience in online shopping versus online shopping frequencies.
4.1.6. Sources of online shopping information
Figure 5. Sources of online shopping information.
Additionally, website advertisement, friends and family members are the primary sources of online shopping information for the online consumer. This result confirms the findings of Hajli ( Citation 2014 ) and Alsubagh ( Citation 2015 ). Publicity through various websites (primarily Facebook) will be more beneficial for organizations to promote their online shopping sites and products.
4.1.7. Reasons for choosing online shopping
Both male and female respondents assured that there are specific reasons for choosing online shopping. 38.75% respondents (26.25% male, 12.5% female) mentioned saving time is their primary reason for choosing online shopping and about 29.38% of the interviewees prefer online shopping because of availability of the varieties of products. Nearly, 19% of the respondents prefer online shopping because product comparison is much easier for online shopping and 13.13% choose for a comfortable reason (see Figure 6 ).
Time-saving and available varieties of products are the main grounds for shopping online. All these four factors motivate an online shopper to buy over the Internet. Therefore, companies should design strategies and develop varieties of products to attract and retain online shopper. This findings also confirm the findings of Gong et al. ( Citation 2013 ) and Hoque et al. ( Citation 2015 ), where the respondents found to adopt e-commerce for the usefulness.
4.1.8. Preference for product/service
Figure 6. Reasons for choosing online shopping.
Figure 7. Preference for product/service for online shopping.
Apparels, accessories, and online ticketing are the main three categories that are bringing about online shopping culture among online shoppers. Online shopping tends to grow in the coming years as consumers want to buy more in the future. Merchants should bring out innovative ways so that there is a growth in other categories of goods and services.
4.1.9. Factors for liking online shopping
Figure 8. Factors for liking online shopping.
Both male and female respondents have the same attitude towards liking factor of online shopping. Both like home delivery facility factor most. However, female likes discount offers more than the male does. These findings confirm the study of Rastogi ( Citation 2010 ) and Katawetawaraks and Wang ( Citation 2011 ), where the online shoppers also preferred the online shopping for ease of use and products’ variety.
4.1.10. Factors for disliking online shopping
Figure 9. Factor for disliking online shopping.
Among the female respondents, 45% dislike online shopping for lack of inability to touch and feel factor. 23.33% dislike the high price of the products and services. 16.67% and 15% female respondents hate poor return policy and lack of after sale service factor most respectively.
Inability to touch and feel the product or trust is still the primary disliking factor about online shopping, or we can say the primary barrier to online shopping which confirms the study of Chen and Barnes ( Citation 2007 ), Heijden et al. ( Citation 2003 ) and Huseynov and Yıldırım ( Citation 2014 ). The high price of goods and services is another big issue for the consumers. Marketers need to develop better return policies, improve the products quality and after sale services and charge a reasonable price to encourage online shopping.
4.1.11. Modes of payment preference
Figure 10. Modes of payment in online shopping.
Figure 11. Payment system security.
Figure 12. Online shopping satisfaction.
4.1.12. Payment system security
From the survey it is found that (Figure 11 ) none of the respondents highly agreed to the fact that the payment system for online shopping is highly secured in Bangladesh. 15% of the interviewees agreed to the fact that online payment system is much secured where 27.5% of respondents disagreed. 51.87% of respondents remain neutral about the fact, and 5.63% profoundly disagreed.
Above all, secured payment is a significant concern in Bangladesh. Most of the consumers believe that the payment system for online shopping is not secured. Usually, they do not prefer to use their credit or debit card while shopping from online sites. Companies should introduce new improved technologies to create and gain confidence in the payment system among the consumers.
4.1.13. Online shopping satisfaction
50% of regular online shoppers are satisfied whereas 17.5% are dissatisfied. 28.12% of them are neither satisfied nor dissatisfied. Only 3.75% of regular online shoppers are highly satisfied while 0.63% is highly dissatisfied (see Figure 12 ).
Satisfaction level plays a significant role in online shopping. Satisfied consumers tend to shop more frequently online. After analyzing data, we found that half of the respondents are satisfied with their overall online shopping experience. A note should be taken that only 3.75% of the online shopper is highly satisfied which shows that there are still concerns, which hinder the consumer from using online shopping frequently. Companies should undertake measures so that dissatisfied and neutral category of online shoppers can move towards satisfied or highly satisfied category and shop online more often and it has to be done through better information quality, quality service in during purchase and post-purchase (Vegiayan et al., Citation 2013 ).
Online shopping is more and more driven by the ICT infrastructure development, online payment systems and the Internet penetration rate in Bangladesh. Earlier studies showed that unlike brick and mortar shopping behavior, online shopping behavior is influenced by net connectivity, website esthetics (Constantinides, Citation 2004 ), security, customers’ experience, age and learning curve, etc. Studying these unique characteristics of online shopping and consumer behavior of online shoppers would benefit the tech-entrepreneurs and policymakers to craft their strategies properly for the market. This study empirically reveals the consumer behavior of online shoppers in Bangladesh.
Bangladeshi online shoppers are young (mostly below 40 years) similar to other parts of the world. They do online shopping because it saves time, offers home delivery, provides ease in shopping and offers more variety of products for apparels, accessories, and ticketing than that of brick and mortar stores. They mostly rely on price and their experience as the basis of the quality judgment of items in online shopping and for payment system they prefer cash on delivery option. Most of the shoppers get the information primarily from Facebook advertisements which is pursued by friends and family by following their “word of mouth” communication. However, privacy and inability to touch and feel are the most disliking factors for online shoppers. These findings of our study have both theoretical and practical implications.
5.1. Theoretical implications
This study provides a foundation for the future researchers in studying the consumer behavior of Bangladeshi online shoppers. Further research can be possible by increasing sample size including a rural population that may reflect the entire scenario of consumer behavior of online shopping in Bangladesh. Furthermore, the variables that have been identified in this study may not be sufficient rather more variables are to be considered in future research. Researchers may also look for factors that influence the online shopping behavior, customer satisfaction, and loyalty.
5.2. Managerial implications
The findings of the paper provide managers guideline about the attributes that must be included in their products and service quality, mode of delivery channel, payment gateway, security, trustworthiness, and pricing strategy. Managers should choose the social network for advertisement. As, until now the online payment systems through credit card are not that much available, managers must maintain the cash on a delivery program to gain trust among the customers. To elevate the touch and feel concern, managers can send alternative products to the customer to choose from options and pay after they prefer one. If the managers consider these factors, they might have a competitive advantage in the market.
Source: eBay ( Citation 2013 ) and Jain ( Citation 2016 )
Source: eBay ( Citation 2013 ) and Hub pages ( Citation 2015 )
Note: GDP in US dollars.
Source: International Monetary Fund (Internetworldstats.com, Citation 2015 )
Note: Subscriber in a million.
Source: BTRC ( Citation 2018 ).
Related Research Data
Notes on contributors
Mohammad anisur rahman, md. aminul islam, bushra humyra esha, nahida sultana, sujan chakravorty.
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