Abstract
This paper develops a theory of online buyer behavior to explain the process buyers go through while making an online purchase in the digital marketplace. The theory has been empirically tested with primary data collected from mall-intercept systematic sampling and analyzed with structural equation modeling. The results indicate that buyers’ attitudes to online shopping are shaped by their perceptions of value, ease of use, and the usefulness of online buying. The actual online purchase is influenced by their intention to use this option, which, in turn, is determined by their attitude toward online shopping. An actual online purchase was also found to give buyers an online shopping experience that significantly shaped their trust in online shopping and future intention to buy things online. Implications of the findings are also presented along with the recommendations.
Highlights
Development of the Internet has increased the popularity of online shopping (Lian & Lin, 2008)
This paper develops a theory of online buyer behavior to explain the process buyers go through while making an online purchase in the digital marketplace
The results from the structural model analysis support the theory of online buyer behavior
Summary
Development of the Internet has increased the popularity of online shopping (Lian & Lin, 2008). A close examination of the literature in this field reveals that most studies have applied traditional theories of buyer behavior while studying online buying (Hansen, Jensen, & Solgaard, 2004; Hsu, Yen, Chiu, & Chang, 2006; Lim & Ting, 2013b). Other studies have examined the effects of some homogenous sets of variables on online purchase intention (e.g. buyer characteristics (Dholakia & Uusitalo, 2002), motivation (Rohm & Swaminathan, 2004), and risks (Forsythe & Shi, 2003)). These investigations remained too focused (domain-specific), failing to provide a clear understanding of the online purchasing process as a whole
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