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Conceptualizing a Model for Online Shopping Intension: A Literature Review

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 International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VI, Issue VI, June 2017 | ISSN 2278-2540

Conceptualizing a Model for Online Shopping

Intension: A Literature Review
Bikas Chandra Mandal1, Dr. Soma Sur2
1
Assistant Professor, MBA Department, Institute of Engineering and Management, Salt Lake, Kolkata, West Bengal, India
2
Professor, Department of Commerce and Management, West Bengal State University, Barasat, West Bengal, India

Abstract: - Internet marketing and online shopping have opened and others who may not have the time to spare for buying
the gates not only for big, small and medium enterprises (SMEs), from retail outlets. (Khalil et al., 2014). But the growth of
it has created immense opportunities for startups of India, to online shopping is relatively lagging, compared to the pace of
market their products (both goods and services) globally. But development of internet technology, because most of the
though there is significant development of the internet
internet users were not switching to online shopping and still
technologies, internet facilities and services, still the online sale is
not significant compared to the sale through retail. Hence, this remaining as web browser (Wang et al., 2008). The
study is undertaken to find the factors that will improve online proportion of online sales to total retail business is still small
sales. The literature available in the internet is reviewed to (Sinha et al., 2012). Though internet facilities and services in
understand and find the influencing factors for online shopping. India are developing rapidly even in tier-II cities, but to make
The findings are that there are two major categories of customers accept and use online stores for purchasing, it is
influencing factors, namely motivating and restricting factors, essential for the web portals to understand the customers’
which affects the customers’ intension to use online shopping for attitude and concerns towards online shopping, assess the
purchase. Based on these findings a model has been various factors which influence the customers’ attitude and
conceptualized. In the proposed model, the construct variables
resolve them through innovative strategies (Murali et al.
are motivating factors and restricting factors and the dependent
variable is intension to buy online. (2014). As customers’ tastes, attitudes and behaviors change
over time, continuous study about the customers’ behavior
Key words: Internet marketing, online shopping, e-tailing, web and perception is needed to help companies to frame
stores, influencing factors for online shopping, restricting factors appropriate marketing strategies for the development of the e-
for online shopping, online buying attitude, and intension to buy
tailing business (Shabeer, 2014). Moreover, the beliefs and the
online.
value system, cultural values, social outlook, attitudes, needs
for satisfaction change over time specially in developing
I. INTRODUCTION countries like India, due to technological and all round
Background development of the society at large.
The IT revolution and continuous development of network II. PURPOSE OF THE STUDY
technology is facilitating high growth rate of e-commerce.
Internet has provided e-tailing as an alternative distribution This paper attempts to do the literature survey and analyze the
channel for sales and distribution, which is growing at a very previous research studies to identify the factors that influence
fast pace all over the world. In the fast changing world, web the decision of customers to use online shopping for
stores or e-tailing is becoming new sales model unfurling purchasing. The results of this study will help the e-tailing
immense business opportunities not only for large enterprises, organizations to develop internet marketing strategies and
but also for small and medium enterprises (SMEs) throughout design marketing programs to make more and more customers
the world. This has great impact on the development of the switch to online shopping, which will contribute to the growth
economy of any country in the world. India having one of the of the Indian economy.
largest technical manpower and the highest percentage of
The paper has been divided into 7 sections, named as:
young generation in the world, has the immense potential for
Introduction (giving details of the background of the study
the growth of the industry and the economy.
and purpose of the study), Literature Review (providing
Online shopping is a better alternative as it is more information of what other researchers have found from their
comfortable than buying from retail, which is usually studies about the factors affecting the decision of customers to
associated with anxiety, traffic jam, time limitation, parking purchase online), Research Objectives (which will provide the
problem etc. (Yulihasri et al., 2011). Today, online shopping direction of the study), Research Methodology (in which the
is convenient for customers like working women with method of conducting the research is explained). Findings
children, employees with hectic schedules, disable persons (where the results of various studies will be discussed and

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 International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VI, Issue VI, June 2017 | ISSN 2278-2540

interpreted), Conclusion (where results will be concluded and essential parameter, which affects the decision to shop online
limitations of the research will explained) and Directions of were convenience, and trust followed by prices and quality of
Future Research (which will guide further research). products. The respondents were very suspicious because of
cheating and fraud on the Internet. Khalil et al. (2014)
III. LITERATURE REVIEW observed in their research study in Soudi Arabia that the
factors affecting the decision to purchase online are the price,
Wang et al., (2008) did an exploratory research by reviewing
trust, convenience and recommendations. Khanh et al. (2014)
the works of domestic and foreign scholars and summarized
conducted research in Vietnam focusing on university
that in retail the purchase decision of customers are
students, consisting mainly male respondents. This study
comprehensive actions of cultural factors (culture, subculture,
revealed that perceived economic benefits, perceived
social stratum), social factors (reference group, family, role merchandise, and perceived payment benefits have significant
and status), personal factors (age, career, economic status, life impact on adopting online shopping. The growth of e-
style, self-concept), and psychological factors (motivation,
commerce in Vietnam was very difficult, because of the fear
sensory, learning, belief, attitude). But the factors that
of risk taking while buying through online. Laxmi (2014)
influence for buying online in China are payment security,
concluded that youths of India, while buying apparels and
web site visibility, online shops credibility, information electronic goods through internet prefers cash on delivery.
comparison, privacy, web site interface, convenient time, Security and network reliability are the major concerns which
education level (comprehensive quality), experience of using
refrains customers from online shopping. Murali et al. (2014)
network. The distrust of the website restricts inexperienced
collected data from 250 internet users from tier II cities of
people from attempting to buy online as they are afraid of
Andhra Pradesh, India. This research analysis revealed that
being deceived.
security, shipping charges, convenience, pleasant experience,
In an empirical study with Indian youth Rishi, B. (2010) trust, need, accessibility, service, product delivery, reliability
found that the main factors that motivate the Indian youth to and quality were the important factors that influence to
buy online are reliability, accessibility and convenience. purchase from online stores. Based on the research study with
Reluctance and preference are the two decisional factors for students of a B-school in India, Patil et al. (2014) identified
buying online or offline. In a research study in an institution that delivery mode, post purchase experience, safety and
of higher learning in Malaysia, Yulihasri et al. (2011), security, information quality, and website design were the
concluded that compatibility, usefulness, ease of use and major factors that affects the decision of young generation
security, normative beliefs and self-efficacy are important while selecting a website for purchasing. Sen (2014) selected
predictors for doing on-line shopping. Hsu et al. (2012) 150 respondents in Kolkata, India to identify the factors that
conducted a research with Mongolian consumers in Taiwan influence the online purchase of products in Kolkata. The
and found that innovativeness, perceived benefits and study revealed that the cost factor (lower price, discounts and
perceived risk are important determining factors for online other sales promotional offers) , convenience (shop at home
shopping. Sinha et al. (2012) in their research study with 143 and saving time), product information, and seller related
experienced internet users, in India found that the important factor (unavailability and unawareness of the seller) were the
stimuli towards using Internet for shopping are convenience, four important factors in the order of importance that
perceived product risk, perceived financial risk, perceived influence to purchase the products online. According to
non-delivery risk and technology specific innovativeness for Shabeer (2014) in rural areas of Kerala in India, the
males and convenience and attitude for females. They encouraging factors for shopping online are low price, greater
suggested for money back guarantee, insured and assured selection of products, saves time, rare products availability,
delivery to reduce the risk factors. According to Yousaf et al. convenient store hours, variety of stores, novel experience of
(2012), though the most important factors that can persuade shopping in the order of importance. The discouraging factors
the customer's online buying decision, is delivery cost for are product cannot be examined, delivery system, lack of
purchased items, but perceived risk, perceived convenience confidence in the security, product may be of inferior quality,
and perceived enjoyment also influence to shop online. web page is not user friendly, slow speed internet connection,
Drawing a sample of 200 higher-education students from lack of customer support representatives in the order of
Indore, Sharma et al., (2013) studied the various factors that importance. Ganapathi, R. (2015) found in the research study
may influence the decision to shop online. They observed that in Chennai, India that convenience, security, website features
convenience, internet traits, and attitudinal traits have and time saving affected the purchasing decision of online
influence on online shopping decision of young students, shoppers. Nittala, R. (2015) in the study in Andhra Pradesh in
while perceived risk (financial risk, privacy, security) and India, identified that perceived risk and price have impact on
product guarantee/warrantee restricts them to shop online. purchasing online. Prashar et al. (2015) reduced the
Uzun et al. (2014) conducted a study for consumer electronics comprehensive set of twenty-four variables into six important
products with 104 Bosnian respondents, consisting both factors, namely, transaction security, augmented benefits, user
online and offline shoppers. They noticed that the most experience, cognitive stimuli, personalized assurance and web

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 International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VI, Issue VI, June 2017 | ISSN 2278-2540

atmospherics that affects the selection of web store. As important specific categories of factors, namely motivating
presented by Akbar et al. (2015), the important influencers and restricting factors, which need different treatments by the
from highest to lowest were price, refund, convenience, e-tailers for the growth of the online sales.
auction websites, security, brand, search engines, promotion
After analysis it can be summarized that the motivating
and online shopping malls to accept online shopping.
factors for online shopping are convenience, convenient store
hours, time saving, variety of stores, website design,
IV. RESEARCH OBJECTIVES
usefulness, innovativeness, accessibility, promotion, low
1) To identify the motivating factors for online price, shipping cost, recommendations, payment options (cash
shopping. on delivery), web site visibility, product information quality,
2) To identify the restricting factors for online information comparison, pleasant experience, delivery mode,
shopping. post purchase service experience, greater selection of
3) To conceptualize an online shopping intension products, rare products availability, and augmented benefits.
model.
The restrictive factors for online shopping are ease of use,
trust, reliability, transaction security risk, perceived product
V. RESEARCH METHODOLOGY
quality risk, perceived financial risk, perceived non-delivery
The present study is a literature review. Hence the related past risk, privacy of personal information, inexperience, internet
research studies, which are available in the internet in comprehensibility, refund option, brand image, product cannot
published form have been consulted. The literature both be examined, slow internet connection, insufficient customer
international and national have been reviewed in support, product guarantee/warrantee.
chronological order. The literature, which are available and
Based on these findings an online shopping intention model
relevant to the objectives of the study, have been referred.
has been conceptualized. The motivating factors and
restrictive factors are the construct variables, which can be
VI. FINDINGS examined to find the effect on the intention to purchase
Most of the researchers have identified the influencing factors online. Most of the scales for measuring these construct
for online shopping. Few of them noticed that out of these variables have been developed from the findings of this
influencing factors, some factors restrict or discourage the literature review and some new factors have been added by us
customer to shop online. But if one analyses these factors to meet the objectives of the study.
together, one will be able to see the emergence of two

Figure 1 : Conceptual model for online shopping buying intension

Website related factors

Convenience factors
Product related factors
Payment options
Shopping experience
Price experience Motivating
Service experience factors
Word of mouth *
Return policy
Reverse logistics *
Delivery options *
Online
Ease of use shopping
Trust
intension
Reliability
Security of transaction
Privacy of information
Inexperience
Internet incomprehensibility Restricting
Product quality risk
factors
Non-delivery risk
Brand image
Product guarantee/warrantee
Product testing *

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 International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VI, Issue VI, June 2017 | ISSN 2278-2540

The proposed conceptual model will help to understand the [4]. Khanh, N. T. V. & Gim, G. (2014). Factors Affecting the Online
Shopping Behavior: An Empirical Investigation in Vietnam. Int.
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of the influencing factors on online shopping intension, but th Feb. 2016.
considered few factors in isolation. Moreover, these have [6]. Murali, S. R. & Mallikarjuna, V. (2014). Factors influencing
been done in different countries having diverse cultural, Consumer Attitude towards online shopping in tier-II cities of A.P.
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