Abstract
The e-commerce market of Pakistan has phenomenally fostered in recent years as a result of cyberspace expansion and launching of various national and international vendors. While country’s e-commerce scenario has significantly reshaped, customers are still reluctant to adopt e-payment methods and cash on delivery (COD) prevails as the method of payments for online shopping. This study was conducted to empirically investigate major factors which influence Pakistani customers to opt for COD while shopping online. A framework was proposed based on seven constructs and the data were collected using 5-point Likert-type scale. Statistical Package for the Social Sciences (SPSS) v. 22 and Amos v. 23 were used for statistical analysis and structural equation modeling (SEM). Cronbach’s alpha values above .85 were found suggesting good internal consistency. The goodness-of-fit index and adjusted goodness-of-fit index values were observed to be 0.933 and 0.866, respectively. In SEM analysis, perceived security against online scams and perceived control over the buying process were observed to be the key role players instigating Pakistani customers to use COD. Interestingly, perceived trust and perceived satisfaction did not show significant impact. Moreover, the moderator of ease of use positively mediated the influence of perceived security on the use of COD. This study presents imperative implications for online businesses as well as government agencies. The investigation provides an insight into purchase behaviors of Pakistani e-customers and has paramount importance for e-commerce retailers and marketing startups in evolving e-commerce scenario of the country.
Highlights
Electronic commerce (e-commerce) is firmly defined as the use of electronic communication and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals (Chanana & Goele, 2012)
A seven-construct model was developed to analyze the influence of cash on delivery (COD) on customers for online payments
E-commerce activities have surged in Pakistan during recent years
Summary
Electronic commerce (e-commerce) is firmly defined as the use of electronic communication and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals (Chanana & Goele, 2012). E-commerce vendors trade products and services to the customers directly through the websites’ portal, social media platforms, or messaging apps. Many of the customers use internet as a source of information to compare the prices of products and services or to look for the offers before purchasing the products online. The vendors’ website portal provides a digital shopping cart for selected products and allows payment through credit card, debit card, or electronic funds transfer. E-commerce is in earlier stages in Pakistan; it is growing at an enormous pace and has huge potential. Pakistan is a country of 207 million people with a median age of 22 years. Youth makes 63% of the country’s population and the estimated number of internet users in the country is over 40 million.
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