Abstract
Online shopping is getting popular even in the rural areas of developing countries. However, few research has been conducted to identify the factors associated to online shopping by the poor villagers. Whereas people living at the bottom of the economic pyramid (BoP) has an aggregate purchase power which is a huge market and online shopping has the potentiality in reducing BoP penalty by removing unnecessary middlemen from the supply chain. In this research, we have conducted a field survey on 600 households in the western part of rural Bangladesh to find out current status of online shopping use by the BoP people and the demographic and behavioral factors associated with online shopping. Chi-square test of association and multi-variate logistic regression test have been performed to analyze data. Result shows that cell phone use, computer use, social media use, and mobile money transfer use have significant relationship in online shopping use at the BoP community.
Highlights
Online shopping has been gaining acceptance rapidly due to the dot-com boom in the 90s globally [1]
More than one-fifth (22%) of the respondents were known to online shopping, less than half of the respondents in low family expenditure group (12%) were known to online shopping compared to high family expenditure group (29%)
This study aimed to depict current online shopping user status and the factors associated with online shopping use in bottom of the economic pyramid (BoP) community
Summary
Online shopping has been gaining acceptance rapidly due to the dot-com boom in the 90s globally [1]. The level of its acceptance and popularity has been growing since it has the potentiality to go beyond international boundaries enabling activities within the virtual marketplace. It has the flexibility of time and distance [2] in purchasing products. It provides wider product selection opportunity within limited space. Several studies on the usage of online shopping identified different factors, such as demographic factors, behavioral factors, infrastructural factors and so on [4]-[6]. Different studies identified the barriers of online shopping expansion globally [7], [8]. If we see the basic requirement of online shopping usage we find there are three major components to access online shopping such as; 1) Internet connectivity to access online catalog, 2) Payment mechanism such as credit card, mobile wallet etc. to make payment, and 3) Product delivery infrastructure [3]
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