Upload
omdeep
View
227
Download
0
Embed Size (px)
Citation preview
7/30/2019 Consumer Model for Online Shopping Behaviour
1/30
Is Engel Blackwell model applicable on Indian online shoppers?
Omdeep Gupta1, Gagan Gulati2
1 Assistant Professor, Department of Management Studies, IMS Unison University, Dehradun,
India: Mobile: 9259748569: [email protected]
2 Lecturer, Department of Management Studies, IMS Unison University, Dehradun, India:
Mobile: 9568119099: [email protected]
Abstract
The online shopping in India is increasing rapidly; almost all the products and services are
available online. It has opened the vast opportunities for the companies all over the world, as
market place is very limited to customer base, market space opens the large opportunity for
customer base. Though it opens vast opportunity for customer base but still its a question about-who will buy the product and services online? What will be the decision process of customers
who buy online? So, to find the solution to this problem the traditional model of consumerbehavior is chosen and the work done on this issue with relation to online buying behavior modelby Darley Blankson is also taken into account. The data is collected through questionnaire from
150 respondents. The statistical tool used is factor analysis.
Keywords: Online buying process, Engel-Blackwell-Miniard Model, Darley-Blankson-
Luethges model
Introduction:
In India the online market space is escalating in terms of various options like fashion accessories,
electronic gadgets, matrimonial services, movies, travel and hotel reservations and even
groceries. As per the report of India Brand Equity Foundation, India is adobe to 3311 e-commerce hubs, 1,267 rural hubs, 391 export hubs and 2,217 import hubs. It is believed by the
experts of the industry that its just an initial stage of the e-commerce in India, as there is only
0.1 percent of total retail sales as compared to developed markets like US accounts whichaccounts for 7.0 percent.
The diffusion of technology catalyst such as desktops, laptops, smartphones, dongles and tablets,internet connections, broadband, 2G and 3G services facilitate and increase the idea of virtual
shopping. After US and China India has the third largest internet customer base. In 2011 there
was around 125.0 million internet customer base and was expected to rise to 150.0 million till the
end of 2012.
The major factor for the growth of e-commerce is mobile phones which are compatible with
internet. It is estimated that mobile users in India are more than 900 million out of which 300million use data services. It is also expected that there will be 1200 million users by 2015 and
approximately about 100 million users will be using 4G and 3G connectivity. There are only 27
million users who are active on internet out of 900 million. Younger population has a major role
mailto:[email protected]:[email protected]7/30/2019 Consumer Model for Online Shopping Behaviour
2/30
in boosting the e-commerce trade in India but still the active mobile internet users account for
only 4 percent.
The majority of Indias Population falls under the category of below 25 years of age and 65
percent of population represents working age group of 15-64 years, which will boost the
disposable income and led to growth of e-commerce in India.
The other factors which help in increasing online shopping are the policies adopted by
companies like return policies, free home delivery and cash on delivery option. COD option hasalso changed the view of customers towards online shopping as it reduces the fear of risk like
paying earlier or disclosing their debit or credit cards details and it is assumed that out of total
online shopping more that 50 percent is based on Cash on Delivery option. A COD option has
reduced the risk of buyer but has provided many challenges to the seller as refusal to pay cash bybuyer, maintaining inventory.
E-commerce is not bound only to particular regions, towns or cities. Or it is not only metro citiespeople who are engaged in online shopping but non-metro cities people are also engaged in
online shopping, as approximately 3311 cities of India were engaged between July 2010 andJune 2011 out of which 1267 belongs to non-metro cities.
Theoretical Literature Review
Engel-Blackwell and Miniard Model (1968)
In their classical purchase model of Consumer decision making they have divided the decision
phase into five activities, viz., motivation and need recognition, search, alternative evaluation,purchase and outcomes. They have also discussed four variables as stimulus inputs, information
processing, decision process, variables influencing the decision process. The arrows represent
major directions of influence that specific variables exert.
They have defined two types of behaviors - Extended problem solving behavior and Limited
problem solving behavior. The extended problem solving behavior depicts the high level ofinvolvement with high perceived risk and in limited problem solving behavior there is low level
of involvement and low level of risk.
The various activities of decision phases are influenced by various variables. Need recognition isinfluenced by information stored in the memory, environmental influences and individual
characteristics. This stage of decision making makes the consumer aware of what he intended to
be and where it is. The second phase, information search is influenced by two variables that areinternal memory and external search.
In internal memory, the consumers search about all the alternatives that are known previouslyand try to choose from them. When consumer is unable to get the required information from the
internal memory, then it moves towards the external search. The marketer dominated external
search is used by the consumer to derive meaningful conclusion. As per the judging standards inthe permanent memory, evaluation of information is done.
7/30/2019 Consumer Model for Online Shopping Behaviour
3/30
Source: David L. Loudan & Albert J. Della Bitta, (2002). Consumer Behavior, Tata mc Graw
Hill education Private Limited ch. 19,P g610-613
During evaluation, if the consumer accepts the information then it helps in retention ofinformation otherwise they reject the information. Evaluation leads to purchase if there is
sufficient amount of money and certainty of future income. If the consumer expectations arefulfilled then it leads to satisfaction otherwise it leads to dissatisfaction. The major problem
identified for this model is that the variables are not properly mentioned and there is also
vagueness in environmental variables.
Darley, Blankson and Luethges model (2010)
This model is based on the Engel, Blackwell and Miniard model (1968) where the impact of
factors like beliefs, attitudes and intentions are added in the five stages model. The influentialfactors identified are online environment, economic and situational factors, socio-cultural factors
and individual characteristics. The drawback of this model is that it is sequential in process and
is not able to justify purchase process.
7/30/2019 Consumer Model for Online Shopping Behaviour
4/30
Darley, Blankson and Luethge Model
Source: Darley, Blankson and Luethge, 2010
Literature Review
According to Virdi et al, (2007), people of age group between 20-30 years are mostly internetsurfers and people belong to the age group of 40 are hesitant to do online shopping because they
are not tech savvy. Mostly they use internet for e-mail purpose.
According to Dahiya, (2012), online shopping in India is affected by age, gender, marital status,family size and income. Age factors do not have too much impact on online shopping in India.
Females are more inclined towards online shopping than males. Family size has impact on online
shopping; nuclear and extended families are less shoppers as compared to family with twochildren. There is no effect of education on online shopping. ANOVA technique is used for
analyzing data.
According to Rakesh and Khare, (2012), discounts and good deals do not influence online
shoppers. Website, layout, product displays and payment modes factors have been understood
through value consciousness and low prices. The study depict that its not applicable for Indian
consumers.
According to Javadi et al, (2012), consumer attitude have significant impact on online shopping
behavior.
Nazir et al, (2012), explains that security is the factor that creates hindrance for people in
purchasing online. It includes sharing personal details of debit or credit card. People also thinkthat shopping from market place involves more effort than shopping through online.
7/30/2019 Consumer Model for Online Shopping Behaviour
5/30
Mengli, (2010) explains that Gender, age and education level creates no difference in the attitude
of the consumers towards online shopping. There various factors which have significant impact
on the attitude towards online shopping are trust, perceived risk, perceived usefulness, personalawareness of security and perceive ease of use.
Abadi, Hafshejani and Zadeh, (2011) explains effect of various factors like trust, perceivedusefulness, firm reputation, social influence, perceived enjoyment and perceived risk towards
online purchase intention. In which trust is the most important factor, then enjoyment. Firm
reputation also plays an important role.
Shim et al. (2001), stated in his study that internet is used for the searching the information as
well as for shopping. Various factors like previous purchase experience through internet,
perceived behavioral control, and attitude toward internet shopping have indirect effect on usinginternet for purchase.
Heijden et al. (2001) stated in his studies that trust indirectly effect the attitude towards thecompany by reducing the perceived risk. Online purchase intention and attitude towards
shopping are not significantly influenced by website usefulness.
Objectives:
To understand variables influencing online shopping consumer behavior and to understand theapplicability of EB Model on Indian online shoppers.
Research Methodology
Primary data is used for this research and it is collected through the tool called questionnaire.
Sample area is Dehradun. Convenience sampling method is applied. Questionnaire is send to the
selected respondents through e-mail. 110 respondents were part of this study and all of them are
internet users. The analysis is done using the SPSS software and factor analysis test and linearuni-variate analysis is used.
Data Interpretation and Analysis
S.No
Demographicvariables
Total
1 Age Below 15years
15-19 years 20-26 year Above 26years
Count 00 10 50 50 110
2 Gender Male Female
Count 70 40 110
3 Income Less than 3
lakh
3 lakh-
499999
5 lakh
699999
7 lakh and
above
Count 30 45 35 00 110
4 Education Intermediate
or below
Graduation Post
Graduation
Doctoral
degree
Count 00 10 90 10 110
7/30/2019 Consumer Model for Online Shopping Behaviour
6/30
5 Area Urban area Semi-Urban
area
Rural area
Count 70 25 15 110
Interpretation:
50 respondents belong to category of 20-26 and above 26 years of age, 10 respondents belong to
15-19 years of category and no respondent belong to below 15 years category.
70 respondents belong to the category of male and 40 respondents belong to the category of
female.
45 respondents have annual income between 3lakh to 499999, 35 respondent have 5 lakh to
699999, 30 respondent have less than 3 lakh and no respondent belong to the category of 7lakh
and above
90 respondents belong to post graduation category, 10 respondents belong to doctorate and
graduation category and no respondent belong to intermediate and below category.
70 respondents belong to urban area, 25 belong to semi-urban area and 15 belong to rural area.
Preference towards Online-shopping
Prefer Online-shopping Yes No Total
75 35 110
Interpretation:
75 respondents prefer online shopping and 35 respondents do not prefer online shopping.
Reason for Online-Shopping
7/30/2019 Consumer Model for Online Shopping Behaviour
7/30
Communalities
Initial Extraction
Website Quality 1.000 .973
Website satisfaction 1.000 .973
Website experience 1.000 .902
Website Interface 1.000 .855
Culture 1.000 .842
Friends Influence 1.000 .908
Family Influence 1.000 .950
Internet Availability 1.000 .808
Shopping Ease 1.000 .866
Economical 1.000 .737
Variety of Choices 1.000 .728
Comparisons 1.000 .922
Entertainment
1.000 .953Leisure activity 1.000 .934
Home delivery 1.000 .898
Better service 1.000 .852
Payment options 1.000 .715
Returnability 1.000 .842
Free shipping1.000 .802
Trend 1.000 .814
Influence by e-promotion
on mails1.000 .766
Influence by promotion onsocial networking site
1.000 .940
Influence by promotion on1.000 .817
7/30/2019 Consumer Model for Online Shopping Behaviour
8/30
Communalities
Initial Extraction
Website Quality 1.000 .973
Website satisfaction 1.000 .973
Website experience 1.000 .902
Website Interface 1.000 .855
Culture 1.000 .842
Friends Influence 1.000 .908
Family Influence 1.000 .950
Internet Availability 1.000 .808
Shopping Ease 1.000 .866
Economical 1.000 .737
Variety of Choices 1.000 .728
Comparisons 1.000 .922
Entertainment
1.000 .953Leisure activity 1.000 .934
Home delivery 1.000 .898
Better service 1.000 .852
Payment options 1.000 .715
Returnability 1.000 .842
Free shipping1.000 .802
Trend 1.000 .814
Influence by e-promotion
on mails1.000 .766
Influence by promotion onsocial networking site
1.000 .940
Influence by promotion on1.000 .817
7/30/2019 Consumer Model for Online Shopping Behaviour
9/30
Communalities
Initial Extraction
Website Quality 1.000 .973
Website satisfaction 1.000 .973
Website experience 1.000 .902
Website Interface 1.000 .855
Culture 1.000 .842
Friends Influence 1.000 .908
Family Influence 1.000 .950
Internet Availability 1.000 .808
Shopping Ease 1.000 .866
Economical 1.000 .737
Variety of Choices 1.000 .728
Comparisons 1.000 .922
Entertainment
1.000 .953Leisure activity 1.000 .934
Home delivery 1.000 .898
Better service 1.000 .852
Payment options 1.000 .715
Returnability 1.000 .842
Free shipping1.000 .802
Trend 1.000 .814
Influence by e-promotion
on mails1.000 .766
Influence by promotion onsocial networking site
1.000 .940
Influence by promotion on1.000 .817
7/30/2019 Consumer Model for Online Shopping Behaviour
10/30
Communalities
Initial Extraction
Website Quality 1.000 .973
Website satisfaction 1.000 .973
Website experience 1.000 .902
Website Interface 1.000 .855
Culture 1.000 .842
Friends Influence 1.000 .908
Family Influence 1.000 .950
Internet Availability 1.000 .808
Shopping Ease 1.000 .866
Economical 1.000 .737
Variety of Choices 1.000 .728
Comparisons 1.000 .922
Entertainment
1.000 .953Leisure activity 1.000 .934
Home delivery 1.000 .898
Better service 1.000 .852
Payment options 1.000 .715
Returnability 1.000 .842
Free shipping1.000 .802
Trend 1.000 .814
Influence by e-promotion
on mails1.000 .766
Influence by promotion onsocial networking site
1.000 .940
Influence by promotion on1.000 .817
7/30/2019 Consumer Model for Online Shopping Behaviour
11/30
Communalities
Initial Extraction
Website Quality 1.000 .973
Website satisfaction 1.000 .973
Website experience 1.000 .902
Website Interface 1.000 .855
Culture 1.000 .842
Friends Influence 1.000 .908
Family Influence 1.000 .950
Internet Availability 1.000 .808
Shopping Ease 1.000 .866
Economical 1.000 .737
Variety of Choices 1.000 .728
Comparisons 1.000 .922
Entertainment
1.000 .953Leisure activity 1.000 .934
Home delivery 1.000 .898
Better service 1.000 .852
Payment options 1.000 .715
Returnability 1.000 .842
Free shipping1.000 .802
Trend 1.000 .814
Influence by e-promotion
on mails1.000 .766
Influence by promotion onsocial networking site
1.000 .940
Influence by promotion on1.000 .817
7/30/2019 Consumer Model for Online Shopping Behaviour
12/30
Communalities
Initial Extraction
Website Quality 1.000 .973
Website satisfaction 1.000 .973
Website experience 1.000 .902
Website Interface 1.000 .855
Culture 1.000 .842
Friends Influence 1.000 .908
Family Influence 1.000 .950
Internet Availability 1.000 .808
Shopping Ease 1.000 .866
Economical 1.000 .737
Variety of Choices 1.000 .728
Comparisons 1.000 .922
Entertainment
1.000 .953Leisure activity 1.000 .934
Home delivery 1.000 .898
Better service 1.000 .852
Payment options 1.000 .715
Returnability 1.000 .842
Free shipping1.000 .802
Trend 1.000 .814
Influence by e-promotion
on mails1.000 .766
Influence by promotion onsocial networking site
1.000 .940
Influence by promotion on1.000 .817
7/30/2019 Consumer Model for Online Shopping Behaviour
13/30
Interpretation
Component Matrixa
Component
1 2 3 4 5 6 7 8
Website Quality .596 .173 .545 .238 -.228 -.126 -.313
Website satisfaction .596 .173 .545 .238 -.228 -.126 -.313
Website experience .647 .183 .353 -.426 .087 .265 .201 -
Website Interface .766 -.231 -.060 .114 -.406 -.159 .091 -
Culture .304 -.250 -.040 .787 .099 -.223 .048 -
Friends Influence .440 .396 -.125 .289 .466 -.359 .069 -
Family Influence .233 .374 -.635 .571 -.040 .032 .031 -
nternet Availability .339 -.696 .149 .157 .245 -.211 .233
Shopping Ease .420 -.702 .239 .090 .342 .073 .078
Economical .156 .658 -.251 -.055 .438 -.063 .069
Variety of Choices .363 .574 .340 -.292 .092 -.240 -.026
Comparisons .283 .329 .399 .149 -.550 .017 .496 -
Entertainment -.044 .603 .164 .350 .128 .516 .281
Leisure activity .357 -.095 -.287 .655 -.217 .467 -.144
Home delivery .583 .105 -.227 -.085 -.146 .038 -.634 -
Better service .663 .193 -.073 -.191 .519 .033 -.214
Payment options .630 -.329 .171 -.124 .183 .328 -.045 -
Returnability .326 -.191 -.512 -.299 .171 .027 -.010
Free shipping .482 -.072 -.141 -.437 -.309 .439 -.026 -Trend .298 -.065 .448 .229 .585 .299 .046 -
nfluence by e-promotionon mails
.716 -.014 -.352 -.028 -.109 .075 .186
nfluence by promotion on
ocial networking site.793 .004 -.101 -.263 -.159 -.369 .253 -
nfluence by promotion onother websites
.715 -.008 -.489 -.154 -.057 -.019 .197 -
Extraction Method: Principal Component Analysis.
a. 8 components extracted.
7/30/2019 Consumer Model for Online Shopping Behaviour
14/30
There are twenty three factors used for analysis of need recognition in this study. These factors
have been selected through research papers and the models itself. For example website interface,
website experience, website satisfaction, website quality, culture, reference group (DarleyBlankson and Luethges model). The factor analysis has divide the various factors into eight
components but no factor lies in third and six components, so in total there are six components.
Component Factors New name
I Website quality, website interface, website satisfaction, internet
availability, website experience, shopping ease, home delivery,
better service, payment options and free shipping
On-line
shopping
variables
II Economical, variety of choices and entertainment Benefits
IV Culture, family influence and leisure activity Traditionalimpact
V Friends influence and trend Modernimpact
VII Comparisons Comparison
VIII Returnability Returnability
Preference to various factors
7/30/2019 Consumer Model for Online Shopping Behaviour
15/30
Communalities
Initial Extraction
Value 1.000 .725
Uniqueness 1.000 .820
Ease 1.000 .826
Goodwill 1.000 .621
Website usage 1.000 .724
Payment 0ptions 1.000 .815
Deliver options 1.000 .849
Discount offers 1.000 .851
Freedom of shopping
anytime1.000 .810
Extraction Method: Principal Component
Analysis.
Total Variance Explained
Compo
nent
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %1 4.285 47.617 47.617 4.285 47.617 47.617
2 1.599 17.770 65.387 1.599 17.770 65.387
3 1.156 12.846 78.233 1.156 12.846 78.233
4 .682 7.583 85.816
5 .536 5.954 91.770
6 .275 3.052 94.823
7 .234 2.595 97.417
8 .148 1.640 99.057
9 .085 .943 100.000Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1 2 3
Value
7/30/2019 Consumer Model for Online Shopping Behaviour
16/30
Communalities
Initial Extraction
Value 1.000 .725
Uniqueness 1.000 .820
Ease 1.000 .826
Goodwill 1.000 .621
Website usage 1.000 .724
Payment 0ptions 1.000 .815
Deliver options 1.000 .849
Discount offers 1.000 .851
Freedom of shopping
anytime1.000 .810
Extraction Method: Principal Component
Analysis.
Total Variance Explained
Compo
nent
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %1 4.285 47.617 47.617 4.285 47.617 47.617
2 1.599 17.770 65.387 1.599 17.770 65.387
3 1.156 12.846 78.233 1.156 12.846 78.233
4 .682 7.583 85.816
5 .536 5.954 91.770
6 .275 3.052 94.823
7 .234 2.595 97.417
8 .148 1.640 99.057
9 .085 .943 100.000Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1 2 3
Value
7/30/2019 Consumer Model for Online Shopping Behaviour
17/30
Communalities
Initial Extraction
Value 1.000 .725
Uniqueness 1.000 .820
Ease 1.000 .826
Goodwill 1.000 .621
Website usage 1.000 .724
Payment 0ptions 1.000 .815
Deliver options 1.000 .849
Discount offers 1.000 .851
Freedom of shopping
anytime1.000 .810
Extraction Method: Principal Component
Analysis.
Total Variance Explained
Compo
nent
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %1 4.285 47.617 47.617 4.285 47.617 47.617
2 1.599 17.770 65.387 1.599 17.770 65.387
3 1.156 12.846 78.233 1.156 12.846 78.233
4 .682 7.583 85.816
5 .536 5.954 91.770
6 .275 3.052 94.823
7 .234 2.595 97.417
8 .148 1.640 99.057
9 .085 .943 100.000Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1 2 3
Value
7/30/2019 Consumer Model for Online Shopping Behaviour
18/30
Communalities
Initial Extraction
Value 1.000 .725
Uniqueness 1.000 .820
Ease 1.000 .826
Goodwill 1.000 .621
Website usage 1.000 .724
Payment 0ptions 1.000 .815
Deliver options 1.000 .849
Discount offers 1.000 .851
Freedom of shopping
anytime1.000 .810
Extraction Method: Principal Component
Analysis.
Total Variance Explained
Compo
nent
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %1 4.285 47.617 47.617 4.285 47.617 47.617
2 1.599 17.770 65.387 1.599 17.770 65.387
3 1.156 12.846 78.233 1.156 12.846 78.233
4 .682 7.583 85.816
5 .536 5.954 91.770
6 .275 3.052 94.823
7 .234 2.595 97.417
8 .148 1.640 99.057
9 .085 .943 100.000Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1 2 3
Value
7/30/2019 Consumer Model for Online Shopping Behaviour
19/30
Communalities
Initial Extraction
Value 1.000 .725
Uniqueness 1.000 .820
Ease 1.000 .826
Goodwill 1.000 .621
Website usage 1.000 .724
Payment 0ptions 1.000 .815
Deliver options 1.000 .849
Discount offers 1.000 .851
Freedom of shopping
anytime1.000 .810
Extraction Method: Principal Component
Analysis.
Total Variance Explained
Compo
nent
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %1 4.285 47.617 47.617 4.285 47.617 47.617
2 1.599 17.770 65.387 1.599 17.770 65.387
3 1.156 12.846 78.233 1.156 12.846 78.233
4 .682 7.583 85.816
5 .536 5.954 91.770
6 .275 3.052 94.823
7 .234 2.595 97.417
8 .148 1.640 99.057
9 .085 .943 100.000Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1 2 3
Value
7/30/2019 Consumer Model for Online Shopping Behaviour
20/30
Interpretation
There are nine factors used for analysis of search and alternative evaluation in this study. These
factors have been selected through research papers and the models itself. The factor analysis has
divided the various factors into three components.
Component Factors New name
I Ease, Goodwill, Website usage, payment options, delivery and
freedom of shopping anytime
Internet
Shoppingexperience
II Value and Discount offers Pricingpolicies
III Uniqueness Uniqueness
Reason for the satisfaction
7/30/2019 Consumer Model for Online Shopping Behaviour
21/30
Communalities
Initial Extraction
Website design 1.000 .789
Information Quality 1.000 .602
Payment method 1.000 .840
E-Service Quality 1.000 .745
Product Quality 1.000 .806
Product Variety 1.000 .775
Service Delivery 1.000 .718
Protection of privacy 1.000 .884
Kind of merchandising 1.000 .718
Security of transaction 1.000 .770
Ease of browsing 1.000 .902
Return policy 1.000 .917
Confirmation mail 1.000 .851
Customer support 1.000 .832
Complaints redressed 1.000 .653
Competitive price 1.000 .744
Extraction Method: Principal ComponentAnalysis.
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared LoadingsTotal % of Variance Cumulative % Total % of Variance Cumulative %
1 5.835 36.466 36.466 5.835 36.466 36.466
2 2.412 15.075 51.541 2.412 15.075 51.541
3 1.904 11.901 63.442 1.904 11.901 63.442
4 1.278 7.989 71.431 1.278 7.989 71.431
5 1.116 6.972 78.403 1.116 6.972 78.403
7/30/2019 Consumer Model for Online Shopping Behaviour
22/30
Communalities
Initial Extraction
Website design 1.000 .789
Information Quality 1.000 .602
Payment method 1.000 .840
E-Service Quality 1.000 .745
Product Quality 1.000 .806
Product Variety 1.000 .775
Service Delivery 1.000 .718
Protection of privacy 1.000 .884
Kind of merchandising 1.000 .718
Security of transaction 1.000 .770
Ease of browsing 1.000 .902
Return policy 1.000 .917
Confirmation mail 1.000 .851
Customer support 1.000 .832
Complaints redressed 1.000 .653
Competitive price 1.000 .744
Extraction Method: Principal ComponentAnalysis.
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared LoadingsTotal % of Variance Cumulative % Total % of Variance Cumulative %
1 5.835 36.466 36.466 5.835 36.466 36.466
2 2.412 15.075 51.541 2.412 15.075 51.541
3 1.904 11.901 63.442 1.904 11.901 63.442
4 1.278 7.989 71.431 1.278 7.989 71.431
5 1.116 6.972 78.403 1.116 6.972 78.403
7/30/2019 Consumer Model for Online Shopping Behaviour
23/30
Communalities
Initial Extraction
Website design 1.000 .789
Information Quality 1.000 .602
Payment method 1.000 .840
E-Service Quality 1.000 .745
Product Quality 1.000 .806
Product Variety 1.000 .775
Service Delivery 1.000 .718
Protection of privacy 1.000 .884
Kind of merchandising 1.000 .718
Security of transaction 1.000 .770
Ease of browsing 1.000 .902
Return policy 1.000 .917
Confirmation mail 1.000 .851
Customer support 1.000 .832
Complaints redressed 1.000 .653
Competitive price 1.000 .744
Extraction Method: Principal ComponentAnalysis.
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared LoadingsTotal % of Variance Cumulative % Total % of Variance Cumulative %
1 5.835 36.466 36.466 5.835 36.466 36.466
2 2.412 15.075 51.541 2.412 15.075 51.541
3 1.904 11.901 63.442 1.904 11.901 63.442
4 1.278 7.989 71.431 1.278 7.989 71.431
5 1.116 6.972 78.403 1.116 6.972 78.403
7/30/2019 Consumer Model for Online Shopping Behaviour
24/30
Communalities
Initial Extraction
Website design 1.000 .789
Information Quality 1.000 .602
Payment method 1.000 .840
E-Service Quality 1.000 .745
Product Quality 1.000 .806
Product Variety 1.000 .775
Service Delivery 1.000 .718
Protection of privacy 1.000 .884
Kind of merchandising 1.000 .718
Security of transaction 1.000 .770
Ease of browsing 1.000 .902
Return policy 1.000 .917
Confirmation mail 1.000 .851
Customer support 1.000 .832
Complaints redressed 1.000 .653
Competitive price 1.000 .744
Extraction Method: Principal ComponentAnalysis.
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared LoadingsTotal % of Variance Cumulative % Total % of Variance Cumulative %
1 5.835 36.466 36.466 5.835 36.466 36.466
2 2.412 15.075 51.541 2.412 15.075 51.541
3 1.904 11.901 63.442 1.904 11.901 63.442
4 1.278 7.989 71.431 1.278 7.989 71.431
5 1.116 6.972 78.403 1.116 6.972 78.403
7/30/2019 Consumer Model for Online Shopping Behaviour
25/30
Component Matrixa
Component
1 2 3 4 5
Website design .041 -.036 .272 .777 .328
Information Quality .744 -.129 -.086 .153 -.023
Payment method .424 .696 .295 -.200 -.219
E-Service Quality .635 -.449 .237 -.013 -.291
Product Quality .211 .647 -.211 .185 -.514
Product Variety .788 -.197 .229 .200 -.151
Service Delivery .709 .152 -.190 -.312 .242
Protection of privacy .763 .328 -.265 -.295 .191
Kind of merchandising .740 -.225 .230 .202 -.161
Security of transaction .842 -.091 -.003 -.213 .083
Ease of browsing .277 -.584 .602 -.293 .191
Return policy .462 -.167 -.736 .366 .016
Confirmation mail .756 .057 -.318 .028 .418
Customer support .456 .524 .568 .158 -.033
Complaints redressed .788 -.064 -.045 .059 -.152
Competitive price -.002 .640 .304 .128 .474
Extraction Method: Principal Component Analysis.
a. 5 components extracted.
Interpretation
There are sixteen factors used for analysis of outcome in this study. These factors have been
selected through research papers and the models itself. The factor analysis has divide the various
factors into five components but no factor lies in fifth component, so in total there are four
components.
Component Factors New name
I Information quality, e-service quality, product variety, service
delivery, protection of privacy, kind of merchandising, security oftransactions and return policy.
Quality of
services
II Payment method, product quality and competitive price CompanyPolicies
III Ease of browsing and customer support Customer
ease
IV Website design Website
design
7/30/2019 Consumer Model for Online Shopping Behaviour
26/30
7/30/2019 Consumer Model for Online Shopping Behaviour
27/30
Between-Subjects Factors
Value Label N
Value 0 Strongly
Agree15
1 Agree 602 Neutral 30
3 Disagree 5
Uniqueness 0 Strongly
Agree45
1 Agree 45
2 Neutral 15
3 Disagree 5
Ease 0 Strongly
Agree
45
1 Agree 50
2 Neutral 10
3 Disagree 5
Goodwill 0 Strongly
Agree45
1 Agree 40
2 Neutral 10
3 DIsagree 15
Website usage 0 Strongly
Agree 30
1 Agree 45
2 Neutral 25
3 Disagree 10
Payment 0ptions 0 Strongly
Agree30
1 Agree 65
2 Neutral 10
3 Disagree 5
Deliver options 0 StronglyAgree
45
1 Agree 55
2 Neutral 5
3 Disagree 5
Discount offers 0 Strongly
Agree40
1 Agree 55
7/30/2019 Consumer Model for Online Shopping Behaviour
28/30
Tests of Between-Subjects Effects
Dependent Variable: Preference
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected Model 17.424a 18 .968 20.048 .000
Intercept 2.659 1 2.659 55.076 .000
Value .045 2 .022 .461 .632
Uniqueness 1.463 1 1.463 30.303 .000
Ease .000 0 . . .
Goodwill .000 1 .000 .000 1.000
Websiteusage .044 2 .022 .452 .638
Paymentoptions .507 1 .507 10.501 .002
Deliveroptions .256 1 .256 5.303 .024
Discountoffers 2.230 2 1.115 23.092 .000
Freedomofshopping .533 1 .533 11.046 .001
Error 4.394 91 .048
Total 30.000 110
Corrected Total 21.818 109
a. R Squared = .799 (Adjusted R Squared = .759)
Interpretation:
As R squared is .799, hence it can be concluded that EB model is applicable on Indian onlineshoppers.
Findings and Conclusion
7/30/2019 Consumer Model for Online Shopping Behaviour
29/30
Factors in favor of EB model:
All the factors like culture, family influence, discount offers, experience are included in EBmodel, which are also applicable on online decision making.
Factors in against of EB model
All the factors like website quality, website interface, website satisfaction, internet availability,
website experience, e-service quality, ease of browsing, information quality, e-promotiontechniques are missing in traditional EB model.
Recommendations
The marketer has to consider all the factors which are related to online consumer decision
making. Though the factors which are used in traditional model are also applicable but if they
ignore the other factors like website experience, e-promotional activities etc than it can effect inlosing the market share of the company who are dealing in market space.
So, it can be concluded that Engel Blackwell model is applicable on Indian Online shoppers butmarketer also has to consider the factors which are related to online shopping.
Limitations
Time constraint- the time for the research was very short.
Respondents biasness cannot be ignored.
7/30/2019 Consumer Model for Online Shopping Behaviour
30/30
The study is limited to Dehradun only.
References
Darley, W.K, Blankson, C, and Luethge, D. J. Toward an integrated framework for onlineconsumer behavior and decision making process: A review , Psychology and Marketing, 27(2),
2010, PP. 94-116
David L. Loudan & Albert J. Della Bitta, (2002). Consumer Behavior, Tata mc Graw Hill
education Private Limited ch. 19, p.p. 610-613
Hossein Rezaee Dolat Abadi, Seyede Nasim Amirosadat Hafshejani and Faeze Kermani Zadeh,
(2011), Considering factors that affect users online purchase intentions with using structural
equation modeling, interdisciplinary journal of contemporary research in business, Vol 3, No 8December
Ma Mengli Proceedings of the 7th International Conference on Innovation & Management Nov11, 2010
Mohammad Hossein Moshref Javadi et al, (2012), An Analysis of Factors Affecting on OnlineShopping Behavior of Consumers International Journal of Marketing Studies; Vol. 4, No. 5
Richa Dahiya, (2012), Impact of Demographic Factors of Consumers on online shopping
behaviour: a study of consumers in India International Journal of Engineering and ManagementSciences, VOL.3(1) , 43-52
Sajjad Nazir et al, (2012), How Online Shopping Is Affecting Consumers Buying Behavior inPakistan?, International Journal of Computer Science Issues, Vol. 9, Issue 3, No 1, May 2012
Sandeep Singh Virdi et al. (2007), Pragmatic Buyers or Browsers? A study of online BuyingBehaviour, Indian Management Studies Journal 11, 141-166
Sapna Rakesh and Arpita Khare, (2012), Impact of promotions and value consciousness in online
shopping behaviour in India Journal of Database Marketing & Customer Strategy Management(2012) 19, 311 320.
Soyeon Shim et al. (2001), An online pre purchase intentions model: The role of intention tosearch, Journal of Retailing 77 (2001) 397416
Van der Heijden, H.; Verhagen, T.; Creemers, M., "Predicting online purchase behavior:
replications and tests of competing models," System Sciences, 2001. Proceedings of the 34thAnnual Hawaii International Conference on , vol., no., pp.10 pp., 3-6 Jan. 2001