Name : Affan Ahmed

ID : 1821868

Course : Mis 465

Section : 01

Submitted to : Arifur Rahman

Submission Date : 17/08/2021

1.0 Introduction  

 online shopping behavior :

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.  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.

 importance of online shopping during COVID-19 :

The COVID-19 crisis accelerated an expansion of e-commerce towards new firms, customers and types
of products. It has provided customers with access to a significant variety of products from the
convenience and safety of their homes, and has enabled firms to continue operation in spite of contact
restrictions and other confinement measures.Despite persistent cross-country differences, the COVID-19
crisis has enhanced dynamism in the e-commerce landscape across countries and has expanded the scope
of e-commerce, including through new firms, consumer segments (e.g. elderly) and products (e.g.
groceries). Meanwhile, e-commerce transactions in many countries have partly shifted from luxury goods
and services towards everyday necessities, relevant to a large number of individuals.

 importance of understanding online shopping behavior among gen Z :

Generations are defined as groups of people who was born within the same span of years, who share a
unique identity due to life experiences . Generation z was born and grew up in the era of digital progress.
They fluent with digital media and technology. Generation z who was born between 1990s and 2000s, so
some of them who was born on 1995 to 2001 studying on university right now. According to reference
Generation z authentically have different requirement and difference motivating factor, they have their
own uniqueness on need and workplace behavior. Their uniqueness influences their point of view and
approach to work and education Generation z also known as I-generation, net-gen, and digital natives .
Generation z predicted by cultural analyst will different with previous generation in quantitative horizon .
Special characters and preference of this generation influences by their nature. They live in digital era
which everything connected by Internet. Differently with generation before them, Generation z never
engaged in experience of living without Internet . As the result, this generation is used to with almost no
delay time in interaction and communication word wide. This also influences their behavior and
perspective in their daily life, including their shopping preference and shopping behavior.
2.0 Literature Review

 Online shopping behavior

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 (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
(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, 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, 2016). Those designs are
paramount to the marketer as they can explain and predict consumer purchase behavior.

Jarvenpaa, Todd, Jarvenpaa, and Todd (1997a) 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 (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, 2015). Therefore, trust and perceived benefits seem
to be the critical conjectures of consumer behavior toward online shopping (Al-Debei, Akroush, &
Ashouri, 2015; Hajli, 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, 2011; Liu, He, Gao, & Xie, 2008; Mudambi & Schuff, 2010; Novak,
Hoffman, & Yung, 2000; Shergill & Chen, 2005; Sorce, Perotti, & Widrick, 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, 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., 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, 2012).

Koufaris (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 ( 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, 2001)

Also, demographic variables such as age, gender, and level of income play a facilitating role because they
influence consumer perception and consumer behavior that drives them towards online shopping (Kim,
Zhao, & Yang, 2008; Laforet & Li, 2005; Sabbir Rahman, 2012). In China, online shopping intention
depends on consumers’ age, income, and education as well as marital status most importantly their
perceived usefulness (Gong, Stump, & Maddox, 2013).
  Theoretical background and hypotheses development 

Qualities are characterized as one's decisions about what is significant throughout everyday life. Qualities
mention to individuals what is acceptable, gainful, significant, helpful, lovely, alluring, or proper. They
answer the subject of why individuals do what they do. Qualities assist individuals with taking care of
normal human issues for survival.The meaning of a worth was initially given by Rokeach (1973) who
depicted it as a suffering conviction that a particular method of direct or end-state presence is actually or
socially desirable over an inverse or banter method of lead or end-reality. As per Schwartz (1992), values
are the core values in one's day to day existence from a more conceptual stance, and they influence one's
perspectives on many issues. As far as friendly transformation hypothesis (Grant& Walker, 2015), values
are a sort of friendly perception that capacities to work with variation to one's current circumstance.

Utilization esteems allude to emotional convictions about beneficial approaches to accomplish individual
qualities by devouring things. Individuals accomplish individual qualities (or objectives) through
activities or exercises, like social cooperation, financial trade, ownership, and utilization (Moore et al.,
2013). Sheth et al. (1991) conceptualized a model to assist with grasping how purchasers settle on choices
in the commercial center. They put together their model with respect to the rule that the decisions
shoppers make depend on their apparent qualities corresponding to what the creators called "market
decision," and that the apparent qualities contribute unmistakably to explicit decisions. Since their model
looks at what the item esteems are that draw in buyers, it very well may be seen as an approach to
comprehend the mentality toward the item, making this a proactive method to comprehend item
acknowledgment and reception. Customers connect various qualities to items and item gatherings and this
influences their inspiration to buy. These qualities incorporate the accompanying: useful worth, social
worth, enthusiastic worth, epistemic worth, and restrictive worth.

All utilization esteems impact customers' buy conduct. Individuals try to fulfill their requirements and
wants with current belongings and view themselves as present day customers in light of the fact that
diverse utilization esteems have been satisfied. A choice might be affected by any or the entirety of the
five utilization esteems. Different disciplines (counting financial matters, social science, a few parts of
brain research, and promoting and customer conduct) have contributed hypothesis and exploration
applicable to these qualities (Sheth, Newman, Gross, 1991).

Schwartz (1992) characterizes esteem as "an alluring trans-situational objective changing in significance,
which fills in as a core value in the existence of an individual or other social substance". At the end of the
day, values are key directions or directing principleswhich fill in as the reason for getting sorted out a
person's convictions and mentalities, and manual for singular conduct (Jagers& Matti, 2010; Schwartz,
2012).
People's consideration about the common habitat mirrors their qualities and affects their conduct (Soyez,
2012). Wang et al., (2013) referenced worth is considered as a significant make-up of relationship
advertising. Client esteem is the principal reason for all advertising movement as referenced by Plewa and
Conductor, (2016)where "Promoting includes trades; trades rely upon clients' worth which is likewise the
crucial reason for all showcasing exercises" (Wang et al., 2013).Nowadays, buyers' buys are generally
due to the apparent corporate,social and ecological worth instead of the prevalent financial worth that
they get from the firm furnishing an item, administration or brand(Huang et al., 2014). Thus clients are
esteem driven (Sweeny and Soutar, 2001),then marketers must comprehend thecustomer-saw worth and
concentrate onachieving market advantages(Shanker, 2012; Mackevičiūtė& Škudienė, 2013).

Seen worth can be characterized as a general assessment of advantage a purchaser gets from an item or
administration dependent on the buyers' audit (Chi et al., 2011; Yusuf et al., 2013; Lai et al., 2014).Green
saw worth can be characterized as "a shopper's general evaluation of the net advantage of an item or
administration between what is gotten and what is given dependent on the customer's ecological longings,
maintaining decisions and necessities to make an item harmless to the ecosystem" (Rizwan et al., 2013;
Akbar et al., 2014).Perceived worth is more significant in the present society as organizations can
improve purchaser buy expectations through item esteem (Steencamp and Geyskens,2006; Karatu and
Mat, 2015; Doszhanov& Ahmad, 2015).Product worth can be found in item qualities, item advantage and
how conspicuous an item is. As indicated by Chen and Chang (2012), green apparent worth decidedly
influences green buy intentions.Researchers have broadly distinguished the critical connection between
saw worth and green buy goal (Chen and Chang, 2012; Kong et al., 2014; Delghanan and Bakhshandeh,
2014; Liang and Chaipoopirutana, 2014; Rajput et al., 2014).

Individuals try to fulfill their requirements and wants with current belongings and view themselves as
present day purchasers in light of the fact that distinctive utilization esteems have been satisfied. A choice
might be affected by any or the entirety of the five utilization esteems. Different disciplines (counting
financial aspects, social science, a few parts of brain research, and showcasing and shopper conduct) have
contributed hypothesis and exploration applicable to these qualities (Shethet al., 1991)
  Online Shopping Behavior among Generation Z during COVID-19 :

Younger adult generations have further shifted their preference away from in-store shopping and that
even when life goes back to normal, issues like long lines and crowds will remain deterrents. More than
half of young adult shoppers, 30% of Gen Z, plan to shop in physical stores less than before.

This group have decided that ecommerce is more enticing than ever, with 28% of Gen Zers will likely
shop online more than before. 

Their move toward online shopping highlights important elements of the experience that retailers can
focus on when looking to improve their own customer journeys. The group cited convenience and price
comparison as the top two benefits of online shopping. They want to have the online journey become
even more convenient, with better fit technology and better shipping options. 

 51% of Gen Z cited price comparison as their top online shopping benefit

Social media is also a big influence on their purchase decisions. In particular, 64.2% of Gen Z noted that
they get shopping inspiration from Instagram. These younger generations also care a great deal about
ethics, sustainability, and equality. For example, 41% of Gen Z said they’d pay more for sustainable
fashion.

Of course, stores still have an important place in the commerce experience. Trying on clothes and
browsing to discover new styles remain very strong draws for shoppers. The challenge is to offer these
elements of the experience in a way that melds with higher levels of online activity. A  unified
commerce approach certainly provides the insights, control, and flexibility to pivot as needed. 
Functional Value and online shopping behavior among generation Z during COVID-19

Functional Value: (4 to 5 lines)

In many cases, Gen Z and millennial consumers have altered their behaviors and spending more
dramatically than older generations have. And perhaps not surprisingly, given the impressionability of
these younger consumers, they expect to stick to many of these newly developed patterns beyond the
COVID-19 disruption. In our exploration of these shifts below, our findings are based on survey averages
across the US, Canada, the UK, and France, and represent net increases in spending or activity (that is, the
percentage of consumers who will increase it minus the percentage who will decrease it), unless
otherwise noted. Our findings focus on the recovery period, over the next 6 to 18 months, when the world
stabilizes at some sort of “new normal,” and do not represent a multiyear outlook.

In terms of how they spend their time, Gen Z and millennial consumers have increased the amount of
time they dedicate to family and household activities, much as older generations have. What sets them
apart is how much time they devote to various forms of at-home and mobile digital media to entertain
themselves and socialize: 62% have increased their time spent on social media (versus 42% for older
generations), 70% have increased their time spent on video streaming (versus 61% for older generations),
and 59% have increased their time spent gaming (versus 35% for older generations).

In terms of how they spend their dollars, Gen Z and millennials are leading the shift to e-commerce. Since
the pandemic began, 33% of these consumers have increased their online spending, for a net increase of
6%, versus 23% of consumers in older generations, or a net increase of 1%. This acceleration of e-
commerce is occurring on two fronts: a shift of existing products, services, and retailers to online, and a
surge in digital-only or digital-first products, services, and retailers.

Hence it is hypothesized that;

H1: Functional value positively influences online shopping behavior among generation Z during
COVID-19
Social Value and online shopping behavior among generation Z during COVID-19

Social Value: (4 to 5 lines)

The Value Shift Report outlines a real shift in younger generations’ (18 to 34-year-olds) approach to
shopping, particularly in the context of ethical issues. As sustainability becomes even more integral to
how consumers wish to live their lives, brands are expected to demonstrate their role in this shared
responsibility. 69 percent believe that protecting the environment and working together towards a more
sustainable future is a top priority. The report also highlights how all generations want brands to take a
stand about important issues impacting the world today but warns they will not tolerate bandwagon
jumping. New-age consumers expect companies to be consistent about issues they campaign for and will
hold them accountable if they fail. Conversely, brands that campaign on an issue that really matters and
create a difference in the world will be rewarded with positive market sentiment and even loyalty.
Further, in line with COVID-19, consumers have adopted a more cautious, risk-free attitude to safety,
health, and hygiene – another set of aspects that call for brands to be particular and watchful of their
operations.

Hence it is hypothesized that;

H2: Social value positively influences online shopping behavior among generation Z during
COVID-19
Emotional Value and online shopping behavior among generation Z during COVID-19

Emotional Value: (4 to 5 lines)

The COVID-19 pandemic and consequential lockdowns and restrictions adversely affected the mental
health of many people.A research shows that some people turned to ‘retail therapy’ during the COVID-19
pandemic, to help them ‘feel better’ during uncertain times.Whether through browsing or purchasing,
online or physical stores, more than two-thirds of shoppers (66 per cent+) consistently reported that they
felt moderately to a great deal happy, in control and a level of normalcy while shopping for non-grocery
retail products.Over half of customer (55 per cent+) consistently reported that they did not feel lonely,
stressed or bored while shopping for non-grocery retail products.

Hence it is hypothesized that;

H3: Emotional value positively influences online shopping behavior among generation Z during
COVID-19
Epistemic Value and online shopping behavior among generation Z during COVID-19

Epistemic Value: (4 to 5 lines)

Epistemic utility regularly results from promptings that are novel and to some degree questionable (Long
and Schiffman, 2000). With the assortment of items accessible on the lookout these days, customers have
the buying power to conclude which brand's item they will buy. Because of this extravagance, clients
might pick another new item since they are exhausted with the past brand or essentially to fulfill a quest
for assortment. Shopper unwaveringness is difficult to keep up with consequently. Subsequently,
epistemic worth is equipped for impacting both buy expectation furthermore, exchanging conduct with
regards to on the web shopping. Epistemic worth clarifies that the on the web shopping goal is because of
customers' interest furthermore, the longing for information. With an intuitive correspondence channel
accessible on the web and an immense market to take advantage of, online sites are eady to make a move
to make another also, consistently refreshed shopping climate inrequest to take into account possible
buyers' interest. Online shopping has made it easy for everyone to find out about certain products and
places. From Amazon to Yelp, websites with testimonials, detailed or short, can be viewed as to whether
a product or service can potentially entice a consumer.

Hence it is hypothesized that;

H4: Epistemic value positively influences online shopping behavior among generation Z during
COVID-19
Conditional Value and online shopping behavior among generation Z during COVID-19

Conditional Value: (4 to 5 lines)

Gen Z and millennials are also expected to maintain significant shifts in what they buy. Unsurprisingly,
young consumers have increased their spending on products geared toward at-home consumption,
essentials, and health and wellness, while they have decreased their spending on more discretionary
products. And they expect to stick with these trends beyond the outbreak. Specifically, in the aftermath of
COVID-19, a net of 10% of consumers expect to increase their spending on packaged food and
beverages, 12% on household products, and 6% on health and personal care products, compared with
their pre-outbreak spending. Consumers expect to offset these increases by reducing their spending in
discretionary categories such as alcohol (a net 8% decline) and by delaying purchases of high-ticket items
such as electronics, mobile devices, and cars and motorcycles (with a net of approximately 20% of
consumers indicating that they would delay spending on each of these categories).

Hence it is hypothesized that;

H5: Conditional value positively influences online shopping behavior among generation Z
during COVID-19