73

Determinants of Shopper Behaviour in E-tailing: An Empirical

Analysis

Ch. J. S. Prasad* A.R. Aryasri**

Consumers' decision-making process hos been changed with the introduction of the Internet as on alternative channel
for shopping . E-toiling is on emergent area of nascent organized retailing in Indio . The purpose of this paper is to
explore the determinants of shopper behaviour such as convenience, customer service, trust, web store environment,
and web shopping enioyment and to examine the influence of these factors towards willingness to buy and patronage
of online retail stores. The study is purely based on primary data collected from a sample of 135 respondents by
using simple random sampling technique from five leading software companies in Hyderabad. Necessary secondary
data were used to reinforce the model. A structured non-disguised questionnaire was administered and responses
were measured on the seven-point Likert scale. Statistical tools like mean, standard deviation, multiple correlations,
multiple regressions, student I-test, and ANOVA were used to find out the strength of relationship and degree of
association among the variables entered into the model. The results reveal that convenience, web store environment,
online shopping enioyment, and customer service have significant impact on the willingness to buy from online retail
stores rather than perceived trust. Except trust and customer service, all other variables are significant with patronage of
online retail stores. As not much work in Indio has been done in this context, the paper seeks to provide fruitful insights
into the factors determining the prospects of e-tailing that con benefit academicians as well as marketers.

Key words: Convenience, Customer service , Trust, Web store environment, Web shopping enjoyment, Consumer
behaviour, E-toiling.

Introduction customer is very hard to predict and is different from the

normal customer. The consumer behaviour in Internet
Consumers' decision-making process has been changed
retailing is influenced by a variety of factors comprising
with the introduction of the Internet as an alternative
consumers' trust in Internet shop based on perceived size
channel for shopping. E-tailing or Internet retailing is
and reputation of its physical store network, perceived
the process of buying and selling products, services,
privacy and quantum of risk, perceptions of convenience
and information over computer networks (Turban, Lee,
as manifested by the opportunity to shop at home
King and Chung 2000) . The new wave of consumerism
for twenty-four hours in seven days a week (Hofacker
coupled with increasing urbanization and burgeoning
2001 ). The web store environment and shopping
middle class with paradigm shifts in their demographic
enjoyment mostly influence shoppers' behavioural
and psychographic dynamics have driven consumers
intentions (Dailey and Heath 1999). Empirical studies
frequently to use retail websites to search for product
show that good customer service positively influences the
information and/ or make a purchase of products .
overall evaluation of products (Babin et al. 1995) and
Presently, Internet retailing in India is growing by 29 per
contributes to satisfaction with the purchase experience
cent CAGR and expected to be 48 per cent and the
and future purchase intentions (Taylor and Baker 1994).
same is valued as INR 27 billion by 2010 (Euro Monitor
Empirical studies in the recent past indicate that many
Retail Report, 2007) from INR 4 billion in 2005-6
online firms still do not completely understand the needs
(Sinha and Kar 2007). Web shopping is envisioned as
and behaviour of the online consumer (Lee 2002) while
an alternative retail channel for various conspicuous
many of them ' ... continue to struggle with how effectively
reasons such as speed of transaction, selection and price,
to market and sell products online' (Joines et al. 2003 :
convenience, time and space neutrality, choice, fun and
93). Since Internet retailing has become an alternative
enjoyment, easy and comfortably obtained information
channel for shoppers as well as retailers in the changing
about products and services (Rowley 1996; Donthu and
trends of Indian retail environment, understanding
Garcia 1999). But the Indian scenario is quite different
Internet consumer behaviour has assumed significance
from that of the West. It has become difficult to discern
and emerged as a focal research area for academicians
the ever-demanding and discriminating enigmatic
and marketers. The objective of the present study is to
consumer behaviour in the globalized era. The internet
explore the determinants of web shopper behaviour,

' Research Scholar, School of Management Studies, Jowoho rlol Nehru Technological University, Hyderobod (Indio). Email: joyosonkoro prosod @gmoil.com
" Professor and Director, School of Management Studies , Jowo horlol Nehru Technological University, Hyderabad (Indio). E-moil : [email protected]

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74 Paradig m • Vol. XIII, No. l , Janua ry - Ju ne, 2009

and the study empirically examines the influence when the consumer is under time pressure (Beatty
of determinants such as convenience, web store and Smith 1987) making the accessibility advantage
environment, shopping enjoyment, customer service, of interactive shopping especially advantageous to
and trust on willingness to buy and patronage of online consumers. This convenience in interactive shopping
retail stores. The structure of the study is as follows: first, increases search efficiency through the ability to shop at
the introduction followed by review of relevant literature, home, by eliminating such frustrations as fighting traffic
research methodology, statistical results and discussions, and looking for a parking space, and avoiding long
marketing implications, limitations and future research, checkout lines, while also offering single-stop shopping
summary and suggestions, and lastly references. that eliminates travel to and from a variety of stores
(Childers et al. 2001). Consumers who perceive the
online environment as offering greater convenience by
Review of Literature reducing shopping's psychological costs are more likely
The interactive nature of the Internet and web offers to consider online retail stores for purchase of products
opportunities galore to increase the efficiency of Internet and services and intend to patronize online retail stores.
shopping behaviour by improving the availability of Hence, the following hypotheses are proposed :
product information, enabling direct multi-attribute
H1a Consumer perceptions of convenience positively
comparisons, and reducing buyer search costs (Alba
affect consumer behaviour on willingness to buy
et al. 1997). Review of existing empirical studies has
from online retail stores.
revealed that consumers have multiple concerns that
influence their behaviour. Fears and concerns, real H1b Consumer perceptions of convenience positively
or perceived, inhibit online consumers' purchasing impact consumer behaviour on patronage of on line
decisions and are relevant in their decision process retail stores.
(Rao 2006). Moreover, a survey by Donthu and Garcia
(1999) indicate that online shoppers are more impulsive Web Store Environment
than others . In these circumstances, as these have
Retail store environment plays a dominant role in
the ability to explain and predict consumers' online
influencing consumer behaviour. During the last few
purchase behaviour, the literature survey has been done
years, retail stores over the Internet have considerably
to identify and understand them that will provide insights
evolved to satisfy the increasing consumer needs while
into consumers' online purchase behaviour. The present
serving varying customer behaviours. It is observed from
review of literature lays focus on several determinants
previous research studies that positive and pleasing
(such as convenience, web store environment, web
store environment enhances a shopper's engagement
shopping enjoyment, customer service, and trust) of
in the shopping activity (Kim et al. 2007). A positive link
consumer behaviour towards willingness to buy and
between store environment and consumers' affective
patronage of e-tail stores.
states of pleasure and arousal has been empirically
supported (Sherman et al. 1997). Similarly, Yoo et al.
Convenience in E-tailing (1998) found that consumer's emotional responses
Convenience is one of the key factors influencing were induced by the store environment. In terms of
consumer behaviour in e-tailing . According to Hofacker e-tailing, web store atmospherics significantly influence
(2001 ), consumers' perceptions of convenience as shoppers' behavioural intentions through altering
manifested by the opportunity to shop at home twenty- consumer affect (Dailey and Heath 1999). Moreover,
four hours a day and seven days a week is expected web store layout producing easy navigation leads to
to influence the adoption of online retail stores. In this a higher level of online entertainment (Vrechopoulos
time-crunched environment of today with multiple- et al. 2004). Bitner (1992) conceptualized a positive
earner households, a 'person living in Florida can association between 'servicescapes' and approach
shop at Harod's in London (through the web) in less behaviour (e.g., desire to stay). Previous research reveals
time than it takes to visit the local Burdines department that web atmospherics influence the shopper's attitude,
store' (Alba et al. 1997: 41 ). Since consumers rarely satisfaction, and approach / avoidance behaviours
visit multiple physical retail stores prior to purchase towards the online retailer, mediated by emotions
(Childers et al. 2001 ), interactive shopping can lower (Eroglu et al. 2003). Another web atmospherics study
the costs of acquiring pre-purchase product information showed a positive linkage between website quality and
while at the same time increase search benefits by shoppers' behavioural intentions (i.e., return to the store)
providing a broader array of product alternatives at a (Lynch et al. 2002) . Richard (2005) also found that
small incremental cost (Bakos 1991). These benefits navigational characteristics of the website are positively
in the reduction of search costs accrue particularly related to visitor's exploratory behaviours on the site.

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Determi nants of Sho pper Behavio ur in E-tai ling : An Empirica l Analysis 75

Novak et al (2000) found a positive influence of website H3a There is a significant impact of web shopping
characteristics on the cognitive and emotional states of enjoyment on consumer behaviour towards
the consumer while shopping online. Thus, consumers willingness to buy from online retail stores.
may have more desire to stay when the on line retailer
H3b There is a positive relationship between shopping
has more pleasing atmospherics . Hence, the following
enjoyment and patronage intention towards an
hypotheses are proposed:
online retail store.
H2a Web store environment positively affects consumer
behaviour on willingness to buy from online retail Customer Service in E-tailing
stores.
Customer service generally refers to organization's ability
H2b Online store environment positively impacts to meet customers' needs and wants (Howardell 2003),
consumer behaviour on patronage of online retail but meaning of customer service varies to a great extent
stores. depending on customers and situations. Interactive
service is an important aspect of on line stores (Jarvenpaa
Web Shopping Enjoyment and Todd 1997). Previous research supporis the critical
role of a sales person on customers' satisfaction (Babin
Besides the greater convenience and pleasing web
et al. 1995). Extensive personal contact between a sales
environment, web shopping enjoyment also highly
person and a customer is the essential requirement and
influences consumer behaviour towards e-taili ng. In-store
nature of retailing and this interpersonal interaction is
retail formats provide more benefits to consumers than
significant, because it may affect customer perception of
simply having merchandise readily available and helping
quality of service, satisfaction with a purchase experience,
them to buy it. It is indeed a place for entertainment and
and future purchase intentions (Ibid.). However, a sales
social interaction and can be a stimulating experience
person who serves customers at traditional retail stores
for some people. As against this, Internet retail formats
is generally not present at virtual stores, even though
are limited in the degree to which they can satisfy these
online shoppers may expect and need customer services
entertainment and social needs (Levy and Weitz 200 l ).
and assistance similar to what they can receive in store
However, with increasing advances in technology and
shopping. Online shopping can be a difficult and
communication, Internet retailers are creating the most
frustrating experience without a salesperson's assistance
attractive and inventive web pages and video clips
(Levy 2000) . Some customer service issues (such as
which are as exciting as the displays and activities in a
facilitating information flow, facilitating the planning
Disney or Nike town store (Levy and Weitz 2001 :84).
process, dealing with automated process, and providing
Some of the auction sites like eBay.com are making
shopping support) are particularly important in internet
shopping a real game of chance and treasure hunt and
retailing (Berman and Evans 2002). According to Hermes
making shopping a fun and entertainment (Berman
(2000), 72 per cent of the online shoppers responded
and Evans 2002). Dailey and Heath (1999) find that
that customer service is a critical factor in shopping
website atmospherics significantly influence shoppers'
satisfaction. Additionally, Data monitor reported that 7 .8
behavioural intentions through altering consumer affect,
per cent of online transactions initiated by consumers
especially pleasure. More recent online atmospherics
are abandoned because of poor customer service
research demonstrate that there is a positive relationship
(Ibid .: 7). Customer service should be considered a high
between the design of website and pleasure experienced
priority as it impacts the long-term relationship between
by online shoppers of apparel products (Mummalaneni
the customer and Internet retailer (Harris and Goode
2005). The quality of the shopping experience has been
2004). In this study, it is proposed that attitude towards
found to have a significant effect on shopping intentions
online customer service is a function of one's salient
(Swinyard 1993). Recent studies provide evidence that
beliefs about online customer service. A consumer's
pleasure experienced from online shopping has a direct
salient beliefs about customer service may be largely
effect on approach responses towards online shopping
influenced by their previous service experiences in
(Eroglu et al. 2003; Fiore et al. 2005). Menon and Kahn
traditional retail stores and other retail formats both in the
(2002) found that consumers who experienced higher
presence and absence of a sales person (Minjeong and
levels of pleasure from the Internet site exhibited higher
Leslie 2005) . Hence, attitude towards online customer
levels of approach responses towards the online retail
service may reflect the relative importance of various
site, including store patronage intentions. In addition,
online customer services desired or expected by online
Koufaris et al. (2001-2) concluded that enjoyment from
shoppers. The more an individual believes that specific
product search functions influenced new web customers
online customers will lead to positive outcomes such as
to return to the site. Hence, the following hypotheses are
a satisfactory shopping experience, the more favourable
proposed:
his or her attitude will be towards on line customer service.

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76 Pa radi gm • Vol. XIII, No. l, Ja nua ry - Ju ne, 2009

In Internet retailing, the more favourable the attitudes 1999: 34). The perception of risk is diminishing as credit
towards online customer service, the more likely one is card companies promote the use of their cards on the
willing to purchase and patronize the particular retail Internet and inform customers that the latter will not be
store (Taylor and Baker 1994) . Therefore, the following responsible for security lapses (ldbi .: 35). Hence, the
hypotheses are proposed: following hypotheses are developed:

H4a Customer service positively impacts consumer H5a Trust positively affects the consumer behaviour
behaviour towards willingness to buy from online towards willingness to buy from online retail stores.
retail stores .
H5b Trust positi vely affects the consumer behaviour
H4b Customer service positively influences consumer towards patronage of online retail stores.
behaviour towards patronage of online retail
stores .
Research Methodology
Trust in E-tailing The present study is an empirical enquiry into the influence
of consumer behaviour towards willingness to buy and
Online trust is one of the issues researchers, as well as patronage of electronic retail stores. The construction
practitioners, frequently associate with the success or of research framework is shown in Figure 1. The study
failure of online ventures. While many researchers do not is purely based on primary data as well as necessary
see any fundamental differences between the traditional secondary data to reinforce the model. The population
and online buying behaviour, it is often argued that a of the study was online retail customers in the city of
new step has been added to the online buying process- greater Hyderabad (India) . For data collection purposes,
the step of building trust or confidence (Liebermann and the researcher approached online customers who were
Stashevsky 2002 ; McKnight et al. 2002). According to all employees from five major software companies in
Harris Interactive Inc. (2001) around 70 per cent of the Hyderabad . The purpose of selecting software employees
US web users are seriously concerned about the safety is based on the assumptions that they are cash-rich
of their personal information, transaction security, and and time-poor and also the fact of their association
misuse of private consumer data because of hacking, of interactivity with Internet and websites. Besides, it is
fraud, spam, and online scams frequently raising also more convenient for busy double income group
security concerns as well as scepticism and mistrust. (both wife and husband are employees). A total of
The physical distance, lack of personal contact, and 200 customers were surveyed through simple random
the anonymity of the Internet are also factors further technique for testing the hypotheses. All participants
increasing the consumers' anxiety and risk perceptions. met the requirement of having previous experience of
The multidimensional character of online trust makes it purchasing products through the Internet. A total of 150
a complicated issue and despite considerable research respondents completed and returned the questionnaire.
attention several online trust issues are still very little This is a 75 per cent response rate. Out of this, only
explored. A study by Grabner-Krauter and Kaluscha
(2003) underlines the complexity of this subject. Based
H1a (+ )
on an extensive review of research work done in this field
these researchers identified trust constructs reflecting
H1b (+)
' ... both institutional phenomena (system trust) and
personal and interpersonal forms of trust (dispositional
trust, trusting beliefs, trusting intentions and trust-related
behaviors .. .' (Grabner-Krauter and Kaluscha 2003:
783). Trust and perceived risk (Jarvenpaa et al. 2000;
Ruyter et al. 2001) have been widely investigated in the
study of consumer on line purchase intention . Consumers'
perceived or real lack of trust and on line privacy in giving
personal information and security for payment through
credit card transactions influences shoppers' behaviour
towards willingness to buy and patronize online retail
store (Whysall 2000). Transaction security and customer
data safety are principle concerns of online customer
purchasing products or services (Constantinides 2004).
Trust H5b (-)
But these security risks have not arisen in actual usage
because almost all Internet retailers use sophisticated
technologies to encrypt communications (Caragata Figure 1: Research framework

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Determi na nts of Shopper Behaviou r in E-to iling: An Empirica l Analysis 77

135 were usable as the remaining fifteen were rendered per cent of the respondents were between twenty-five
unusable because of incomplete data_ and thirty-five years of age, 24 per cent were between
thirty-five and forty-five and 8 per cent were over forty-
A structured non-disguised questionnaire
six years old. Seventy per cent of the respondents were
containing customer's demographic profile and
graduates and the rest 30 per cent were postgraduates.
measures estimated by using dichotomous questions,
The average number of years of computer experience
multiple-choice questions, seven-point Likert-type
was 5.8 and the median was 4.5. The average number
scales (l: 'strongly disagree' to 7: 'strongly agree'),
of years of Internet experience was nine and median
and open-ended questions was administered to the
was seven. Participants reported spending an average
respondents_ It was framed in a prearranged order
of 3.2 hours per week on all types of shopping activities.
with variables adopted from different sources for the
Seventy-four per cent of the respondents had purchased
purpose of primary data . To measure the online store
products from an online store. Twenty-six per cent visited
perception variable, five items were adopted from
online stores but not purchased any product. Forty-eight
Wakefield and Baker (1998) and modified to suit the
per cent of the respondents had purchased more than
Indian online retailing. To measure the convenience of
once from online stores. Most of the participants (63
shopping variable, the scale consisted of three items.
per cent) reported that they had purchased consumer
Online store environment consists of four items adopted
durables like computers-both desktops and laptops,
from Mummalaneni (2005) and Eroglu et al. (2003). To
cell phones, and CD players. Thirty-seven per cent of
measure online shopping enjoyment variable, six items
respondents purchased consumer durables, apparels
were adopted from Zaichkowsky ( l 985). Trust variable
and books. All the respondents had income above
consisted of five items adopted from (Cheung and Lee
Rs 25,000 per month. Participants, thus, were familiar
200 l ). Customer service variable consisted of seven
with using computers and particularly interactive
items adopted from E-Retail intelligence program (Retail
shopping on the web. These results also proved that
Forward Inc. 2001 ). And lastly, to assess the willingness
respondents had a significant level of willingness to
to buy and patronage intention towards an online
buy and patronage of online retail stores . The statistical
retail store, six items were adopted from Wakefield and
tool 'correlation' was used to examine the strength
Baker (1998), Fiore and Jin (2003), and Kim and Stoel
and direction of relationship among all five predictor
(2005). The secondary data were collected from various
variables (Convenience-CON, Web Store Environment-
national and international journals, reports, textbooks,
WENV, Web Shopping Enjoyment-WENJ, Customer
and websites. Various statistical tools and techniques
Service-CS, and Trust-TRS) and two outcome variables
like mean, standard deviation, correlations, regression
like Willingness to Buy-WTB and Patronage of Online
analysis, t-tests, and analysis of variance were applied
Retail Store-PAT. The statistical significance of correlation
through SPSS 14.0 version to predict relationships
was indicated with double asterisk marks for significance
among the constructs.
less than 0.05 and single asterisk marks for significance
less than 0.1. The mean, standard deviation, and
Statistical Results and Discussions correlation among the variables are shown in Table
l. The internal consistency of the instrument was
A review of the online customers' demographic profile
tested through reliability analysis. Reliability estimates
reveals that 58.5 per cent of the respondents were
(Cronbach's Alpha) for the construct's variables are:
male and rest 41 .5 percent were female . Sixty-eight

Table 1: Descr_iptive statistics and correlations of convenience, web shopping enjoyment, web store environment,
customer serv1Ce, trust, and willingness to buy and patronage of online stores

SI. No. Variable Mean SD 2 3 4 5 6 7

l. CON 4 .03 .61 1.000
2. WENJ 3.97 .62 . 736** 1.000
3. WENV 3.88 .65 .652** .568** 1.000
4. cs 3.73 .69 .389** .335** .316** 1.000
5. TRS 3.54 .72 .219 ** .268** .212** .198* 1.000
6. WTB 4.05 .61 .634** .519** .345** .265** . 185* 1.000
7. PAT 3.98 .64 .536** .508** .337** .198* .164 * .725** 1.000
' Correlation is significant at the 0.1 level (2 -tailed)
" Corre lation is significant at the 0.05 leve l (2-tai led).

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 78 Parad igm •Vol. XIII, No. 1, January · June, 2009

Convenience (0.86), Store environment (0. 78), Shopping to buy from online stores. Here, convenience (CON)
enjoyment (0. 72), Customer service (0. 70), Trust (0.68), has emerged as a major influencing variable followed
Willingness to buy (0.78), and Patronage of online retail by shopping enjoyment, store environment, customer
store (0.72), revealing a high degree of reliability. All service, and trust. All predictor variables except trust
reliability estimates were well above 0.60, the lower limit have significant impact on willingness to buy from online
of acceptability (Hair et al. 1998). retail stores. The positive sign of the estimates show that
the greater the extent of these variables, the more is the
Regression Analysis of Convenience, Store willingness to buy from online retail stores. Thus, there is
Environment, Shopping Enjoyment, Customer validity for hypotheses H la, H2a, H3a and H4a. But in
Service and Trust and Willingness to Buy from the case of the fifth variable, trust is insignificant though
Online Stores Beta coefficient is positive. Hence, the hypothesis H5a is
rendered invalid as its p-value is more than 0.05.
The hypotheses of association between variable
influencing consumer behaviour and willingness to buy The convenience factor created by time and space
from online retail stores were tested by hierarchical neutrality has direct and positive effect on consumer
multiple regression analysis. The results are analysed behaviour towards willingness to buy products from

to show that convenience, store environment, shopping Internet retail stores . Empirical research supports that
interactive shopping increases search efficiency through
enjoyment, customer service, and trust contribute
significantly and predict 49 per cent (R 2 = 0.49) of ability to shop at home, by eliminating such problems
variation in willingness to buy towards online store as as travel time to go for shopping, facing the irritating
sales people, long checkout lines, and parking space
reflected in Table 2. The corresponding ANOVA values
for the regression model shown in Table 2 indicate problems. The findings also support the perceptions
of online store environment and shopping enjoyment
significant predictors of willingness to buy from online
having direct and positive influence on consumer
retail stores: F (5, 129) = 24.832, p<0 .001. The
behaviour towards willingness to buy from online
coefficient summaries as shown in Table 3 reveal Beta
retail stores. These results confirm the consistency with
values of Convenience (CON)= 0.281, p< 0.01, Web
previous research (Donovan et al. 1994; Eroglu et al.
Shopping Enjoyment (WENJ) = 0 .268, p<0.05, Web
2003) . Consumers' attitude towards online customer
Store Environment (WENV) = 0.183, p< 0.0 l, Customer
service is positively related to willingness to buy from
Service (CS) = 0.167, p<0.05 and Trust (TRS) = 0.105,
on line retail stores. In spite of absence of human factor in
p>0.05 which have conspicuous impact on willingness

Table 2: Regression model and ANOVA summary for willingness to buy as dependent variable reliability assessment

Std Error Change Statistics

Adjusted
Model R R Square of the R Square F Sig. F
R Square df 1 df 2
Estimate Change Change Change
.700(a) .490 .471 .458 .490 24.832 5 129 .000
a. Predictors: (Constant), CON, WENJ, WENV, CS, and TRS
b. Dependent Variable: WTB

Table 3: Coefficient summaries for willingness to buy as dependent variable

Unstandardized Standardized
t-value Sig.
Coefficients Coefficients
Model B Std Error Beta
(Constant) 0.676 0.0340 l.987 0.049

CON 0.269 0.099 0.281 2.717 0 .007

WENJ 0 .268 0.104 0 .268 2 .579 0.011

WENV 0.153 0 .056 0 . 183 2.737 0.007

cs 0.157 0.067 0.167 2.354 0.020

TRS 0.105 0.045 0.105 1.548 0.127

a. Dependent Variable: WTB

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Determ inants of Shopper Behaviour in E-tailing : An Empirical Ana lysis 79

customer service, web shoppers are content with online trust. All predictor variables except customer service
services . But in the case of trust, the consumers' attitude and trust has significantly correlated and influenced
and behaviour are indifferent towards willingness to buy consumer behaviour towards patronage of online retail
from online stores because of lack of adequate trust stores. The positive sign of the estimates show that the
in privacy of their personal information and security in greater the extent of these variables, the more inclination
online payment transactions. towards patronage of online retail stores . Thus, there is
validity for hypotheses H 1b, H2b, and H3b. But in the
case of the fourth variable {customer service) and the
Regression Analysis of Convenience, Store
fifth variable {trust), both these are insignificant though
Environment, Shopping Enjoyment, Customer
their Beta coefficients are positive . Hence, hypotheses
Service, and Trust and Patronage of Online Stores
H4b and H5b are rendered invalid as their p-values are
The results of the regression analysis shown in Table 4 more than 0.05.
prove that convenience, online shopping enjoyment,
Consumers' behaviour towards patronage of
store environment, customer service, and trust contribute
online retail stores is highly influenced by convenience,
and predict 41 .9 per cent (R 2 = 0.419) of the variation in
web shopping enjoyment, and web store environment.
the patronage of online retail stores. The corres ponding
These three variables had a direct and positive impact
ANOVA values for the regression model shown in Table
on creating shopping involvement and intention of
4 indicate significant predictors of patronage towards
patronage towards online retail stores. These results
online retail stores : F (5, 129) = 18.630, p < 0 .001.
confirmed the previous empirical findings for patronage
The coefficient summaries as shown in Table 5 reveal
of online retail stores {Menon and Kahn 2002;
Beta values of Convenience (CON) = 0.249, p < 0.05,
Wakefield and Baker 1998). Consumers' behaviour
Web Shopping Enjoyment (WENJ) = 0.231, p < 0 .05,
towards customer service provided by Internet retailers is
Web Store Environment (WENV) = 0.180, p < 0.05,
indifferent and insignificant towards patronage of online
Customer Service (CS) = 0.122, p > 0.05 and Trust (TRS)
retail stores. Moreover, consumers become pessimistic
= 0.102, p > 0.05, which have conspicuous impact on
towards patronage of online stores because of lack
consumer behaviour towards patronage of online retail
of ease in searching and comparison shopping, lack
stores. Here also, convenience (CON) has emerged
of availability of personalized shopping and product
as a major influencing variable followed by shopping
updates, and lack of availability of in-stock status
enjoyment, store environment, customer service, and

Table 4: Regression model and ANOVA summary for patronage for online store as dependent variable reliability
assessment

Std Error Change Statistics

R Adjusted
Model R of the R Square F Sig. F
Square R Square df 1 df2
Estimate Change Change Change
.648(a) .419 .397 .50552 .419 18.630 5 129 .000

a. Predictors: (Constant), CON, SENJ, SENV, CS, and TRS

b. Dependent Variable: PATR

Table 5: Coefficient summaries for patronage for online store as dependent variable

Unstandardized Standardized
Model Coefficients Std Error Coefficients t-value Sig.
B Beta
{Constant) 0.777 0 .376 2.668 0.041

CONV 0.247 0.109 0 _249 2.258 0.026

WENJ 0 .239 0.115 0.231 2 .081 0.039

WENV 0.158 0.062 0.180 2 .554 0 .012

cs 0.163 0.059 0.122 1.789 0 .905

TRS 0.095 0.051 0.102 1.653 0.101

a . Dependent Variable: PATR

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80 Paradigm • Vol. XI II, No. l , January · June, 2009

information. Consumers' perceived trust levels towards • Since customer satisfaction and customer service
online retail stores are very low. Lack of consumers' trust are cardinal for understand ing the attitudinal and
in privacy and safety regarding passing on personal behavioural changes towards patronage of online
information and security in on line payment transactions retail stores, customer satisfaction variable is to
hold back consumers towards patronage of on line retail be included in future research for appropriate
stores forever. measurement of patronage loyalty.

• Limited variables were used in the present

Marketing Implications study. This has created an opportunity for future
research in this area by using other variables
The empirical analysis and findings of the present study
such as responsiveness, reliability, assurance,
have yielded important insights and implications for
tangibility, navigation, incentives and rewards, web
online retailers and marketers. Convenience factor has
atmospherics, web store design, and online store
emerged as the prime determinant in both willingness
perceptions.
to buy and patronage of online stores. Since Internet
retailing is a nascent state and still in the stage of • Other statistical tools like factor analysis could be
evolution in India, online retailers need to adopt used in future research for clear analysis of factors
advanced web technology in order to increase the ease influencing consumer behaviour. And Chi-square
and convenience for navigation of products and services. could be used in analysing the test of independence
The findings also prove that web store environment and and goodness of fit for the demographic factors
web shopping enjoyment are crucial for increasing influencing consumer behaviour towards Internet
customer satisfaction . Online apparel retailers may retail outlets.
adopt a higher level of 30 virtual technology model to • Though the sample size is acceptable, it is indeed
enhance product examination and improve consumer required to be increased to the maximum so
perceptions of the web store environment. Since word- as to get the exact attitudinal and behavioural
of-mouth communication spreads very fast through perceptions towards Internet retailing and further
Internet, online retailers may exercise caution in generalization and inference of the findings to the
implanting customer service aspects which are pivotal whole population under study.
for influencing consumer attitudinal and behavioural
changes towards willingness to buy and patronage of • Future research is required to clearly assess
online retail stores. Consumers' trust levels are very low consumer behaviour by collecting representative
towards online retailers . It is a great challenge for online multi-city and/ or cross-country data.
retailers to convince and persuade online customers
about the issues related to the privacy and security of Summary and Suggestions
personal information and mode of payment. Online
retailers need to adopt integrated mechanism in order to E-tailing is an emergent area as an attractive alternative
enhance consumers trust in safeguarding their personal to the organized brick-and-mortar stores. Continuous
information and avoidance of misuse of credit card innovation and adoption of novel technologies will drive
mode of payments. the growth of Internet retailing as today's web shoppers
are more discriminating and demanding . This empirical
study investigated the impact of consumer behaviour
Limitations and Future Research towards willingness to buy and patronage of online retail
stores. Some important mind-boggling revelations have
Although the objectives of the present study were fully
met, a few limitations were identified in the course of been made by using the responses provided by 135
online retail customers in Hyderabad. The study finds
this study. The limitations of empirical research provide
that convenience, online store environment, shopping
the foundation for continued research to improve the
enjoyment, customer service, and trust are vital in
understanding of the factors leading to consumer
influencing consumer behaviour towards willingness to
behaviour and use of interactive retail shopping .
buy and patronage of online retail stores. It is observed
• Firstly, the present study focused on a narrow that customer service and trust levels are low and there
demographic representation of software employees is an urgent need to address the concerns of online
in leading software companies in Hyderabad. retailers in this regard. Some of the suggestions, that this
This could limit the generalization of findings and research study has observed for the fledgling e-tailing in
inferences to the entire online consumers. This India are:
creates an ideal opportunity to consider more
diverse demographic groups of online retail
l. E-tailing in India can be a success if the e-tailers
change their business models and understand
consumers for the purpose of the study.

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Determinants of Shopper Behaviour in E-tailing: An Empirical Analysis 81

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