Determinants of Millennials' behavior in online shopping – Implications on consumers’ satisfaction and e-business development

Abstract

This paper identifies the attitudes and key determinants of Millennials’ online shopping behavior in Montenegro. An empirical survey was conducted in Montenegro on the sample of 813 millennial consumers by using Structural Equation Modeling and the analysis of the variance (ANOVA) test. The results revealed that Millennials are satisfied with previous experience in online shopping. They perceive it beneficial compared to purchase in traditional shops, but also perceive it as very risky, which is why they buy online mostly inexpensive products. The results also suggested that behavior of millennial consumers in the online purchase significantly depends on their demographic characteristics. While the frequency of online shopping is the same for both genders, male consumers spend more money on it compared to women. Also, men to a greater extent prefer doing the online shopping using more famous websites, than women do. The amount spent in online shopping does not depend on age of consumers, but younger Millennials do this type of purchase more often compared to older Millennials. Based on the results, this paper provides implications for managers important for building the trust of consumers and increase of online sales.