Consumer Model for Online Shopping Behaviour

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    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]
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    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.

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    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.

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    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.

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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.

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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.

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    The study is limited to Dehradun only.

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