Factors influencing customers online buying behaviour in bangladesh an empirical study

Factors Influencing Customers’ Online Buying Behaviour in Bangladesh: An Empirical Study Md Adnan Rahman Abu Bakar A Hamid Putra Business School, Malaysia Abstract Online purchase is increasing in terms of scale and scope The online purchasing via electronic commerce (E-commerce) is a moderately innovative business network, which involves buying and selling services and goods by operating a technology network The research aims to deliver a comprehensive reconceptualization and exploration of the variables influencing customer’s online buying behavior through empirical study It will analyse the factors that influence customer’s online purchasing behaviour in the context of Bangladesh Based on the findings, a sample of the model regarding online customer shopping behavior will be established to assist e-businesses An empirical analysis through questionnaire and survey will be undertaken to answer the research questions Keywords: Online Buying Behavior, Electronic Commerce, Online Marketing JEL classifications: M31, L81 Introduction Through the growth of Internet browsing nearly 30 years ago, it was predictable that online buying would develop an alternate approach of buying products It has been emerging ever since in terms of range of efficiency, services, popularity and security, however the buying through online requires constant development if it is to assemble the altering and emerging anticipations and requires of customers The online purchasing via electronic commerce (Ecommerce) is a moderately innovative business network, which involves buying and selling services and goods by operating a technology network, specifically, the Internet or world wide web (WWW) The procedures are called state-of-art technology that is included of software, hardware and network equipment whereby every factors workings as a particular method creating individuals close together This innovative technology has been implemented and expanded universal so that all are the individuals can be joined to each other, in both business purpose and personal, via just clicking a mouse at any time and anywhere According to Hsieh et al (2013) noted that, Internet is affecting individuals’ everyday life more so as compared to the previous time Individuals every day accomplishments have increasingly altered from physical circumstances to virtual environment So that, the investigating and intellectualizing of online customers buying behavior are immediately necessitated to accelerate specific e-retailer setting efficient marketing strategies, and to contribute further to enlarge of the online purchase in market Though in the area of marketing, online shopping is relatively new concept, from theoretic perception, there is a scarcity of research that has established unified models in the online purchasing circumstance to stipulate a more widespread method in accepting ecustomers behavior 308 Literature review Dennis et al., (2007) noted that examinations to the outcomes of customers behaviour in online have lagged behindhand The lack of substantial development of online purchasing market as well as online customers behaviour theory, indicates to the investigation of online customers behaviour becoming progressively imperative This analysis re-examined a selection of predominantly referenced online customers behaviour models as well as traditional models, to procedure the theoretic basics for the online customers behaviour model anticipated in this research The Nicosia Model (1868) considers that, customers characteristics (e.g.: Demographic determinants) and seller’s characteristics (e.g.: Store design), influences customers buying attitudes and progressive attitudes would spread customers purpose to explore information concerning such services and products Progressive attitude of online purchasing produced from the estimation of information achieved will spread customer’s motivation in creating utilization Additionally, earlier purchasing experience will influence customers and seller’s characteristics, and then, customer’s attitude of future purchasing behaviour and decision-making procedure According to Howard and Sheth’s Model (1969) explore, that social contributions (e.g.: Social class, family and reference groups) are input variables (antecedent variables) that influences customer’s intuitive concepts, and then influence learning concepts (e.g.: Purchase intention, Attitude and Motives) In Howard and Sheth’s Model (1969), it has been highly recommended that attitude is influenced by motivates, and attitude always influence purchase intention Furthermore, the EKB Model (1982) trusts, individual attributes (e.g.: motives, lifestyle and personality) and social inputs (e.g.: reference groups and culture) are input variables that together primarily and secondarily affect purchase and information search as well as influence attitude secondarily On the other hand, latest Models of customer’s behaviour models have trusted upon functional theory of attitudes, particularly the TRA theory called theory of reasoned action (Fishbein and Aizen, 1975) and the TPB theory that's called theory of planned behaviour (Ajzen, 1985) Also, Fishbein and Ajzen, (1975 1980) suggest the Theory of Reasoned Action (TRA) that an individual’s behaviour intent differs on the individual’s attitude about the subjective norms and behaviour Ajzen (1985) adding a new concept named – perceived behaviour control, also it has been suggested by the theory of reasoned action (TRA) that an individual’s behavioural intent alters on the individual’s attitude about the perceived behaviour control, subjective norms, behaviour Both the theory of planned behaviour and the theory of reasoned action indicate attitude is a significant originator (antecedent) element to the behaviour intent Since 1990, researchers have struggled to grow customers online behaviour theories based on the functional theories Shim et al (2000) who had developed online purchase intention models considers Internet shopping experience and attitude considerably influences purchase intention in online E-customers rational purchase behaviour model developed by Park and Kim’s (2003) trusts that information satisfaction consequently purchases behaviour is influences by security perception The extension model that has developed by Kim and Parks (2005) points that attitude regarding purchase through the online storehouse and information search significantly effect purchase intention through the online storehouse The attitude toward online purchase intention has influences considerably by information search through online storehouse (Kim and Parks, 2005) Traditional customer behaviour models are not adequate enough to forecast online customers behaviour (Demangeot and Brodrick, 2007) Except Howard and Shets Model, all are the comprehensive models have not been empirically verified and those are very complex The present online shopping environment is very aggressive and changing rapidly while the validity and appropriateness of customers shopping behaviour is doubtable based on the analysis of traditional customer behaviour model Comparing to all traditional “bricks” the current accessibility based on all perceived benefits are more significant in this collaborating channel Millions are new customers are joining in online shopping environment with billions of existing customers and due to this reason purchasing trends are changing speedily One of the most obvious elements 309 that influence more is previous shopping experience as well as the highest important modification could be the product information search and role of convenience Thus, traditional customer behaviour theories/ models may not be able to well describe the phenomenon of online customer behaviour Even though it will not be possible by recent models as well due to not taking previous online shopping experience or online shopping motivations into justification Research objectives This empirical research will be segmented into limited objectives to require a well-stated analysis to the customer’s online purchasing behaviour research Before anything else, the justification of research is established created on the information examined concerning the improvement and history of business to customer E-commerce marketplace, as well as present shopping marketing tendencies in online Furthermore, the evaluation and revision of the literature associated with current online shopping and traditional online shopping behaviour models also suggest that more accurate online shopping models is essential to aid the understanding of shopping customers behaviour theory in online marketplace This empirical research includes seven research objectives:  Conceptualise and identify the variables that influence customers shopping behaviour in online marketplace  Based on the theoretical connections recommended through the assessment of the literature review - a prototype online customer behaviour model will develop  Analysis the theoretical connections recommended  Investigate the customer’s online shopping behaviour model recommended in this empirical research  If required, revise the original recommended customers behaviour model through hypothetical and statistical substantiations, to improve model that well illuminates online customers model  Evaluate the importance and strength of the influences of previous experience, attitude, information search, price, convenience, hedonic motivation on purchase intention in online  Compete the outcomes through this analysis with literature review to investigates its impact to understanding and propose managerial propositions Methodology Based on the analysis and literature review the conceptualisation will initially investigate the variables that considerably influence customers online shopping behaviour, then these variables are foster reduced (clustered) into a limited arranged of factors or variables to be expended in expressing the customers online shopping behaviour model Based on hypothetical relations produced from the assessment of the literature, the customer behaviour model in shopping online will be develop Then for this empirical research the quantitative data will be assembled through designed questionnaire, and the acquired data will be investigated exploiting a collection of predominant statistical methods After that tested this hypothesis, may be alterations make to the preliminary customers behaviour model in online improve if require, to improve more perfect customers behaviour model in online to assist the accepting of customers online purchasing behaviour 310 Conclusion This paper aims to analyse and explore factors that influence customer’s online shopping behaviour Secondly, it will examine the interconnections concerning variables that influence customer’s online purchasing behaviour Thirdly, it will build a prototype customer behaviour model in online shopping to assist the supporting of online customer model Fourthly, it aims to analyse the proposed online shopping behaviour model and modify and evaluate the suggested structure collect substantial quantity of connected data on the evidence necessitated to require appropriate statistical substantiation Finally, through assessing the conclusive adapted customer behaviour model of this analysis, the paper aims to define the comparative substantial of the variables influencing customer’s behaviour in online This empirical research attempts to analyse the factors that influence customer’s online purchasing behaviour, viz., purchasing online establishes such as customers socio demographic characteristics including age, gender, income, education, employment status, marital status, internet usage and family composition etc earlier purchasing experience in online; attitude concerning shopping online, motivations from online purchasing such as price and convenience; information search concerning online shopping; and purchase intention in online References Ajzen, I (1985) From intention to action: A theory of planned behavior In: Kuhl, J and Beckman, J., (1985) Action Control: From Cognitions to Behaviors, Springer, New York, NY Ajzen, I., (1991), The theory of planned behavior Organizational Behavior and Human Decision Processes 50, pp 179211 Ajzen, I (2002) Perceived Behavioral Control, Self-E icacy, Locus of Control, and the Theory of Planned Behavior Journal of Applied Social Psychology, 32,665-683 Chaffey, D (2009) E-business and e-commerce management 4th Edition, Harlow: Financial Times Prentice Hall [ISBN 9780273719601] Chang, M., Cheung, W., & Lai, V (2005) Literature derived reference models for the adoption of online shopping Information & Management, 42(4), 543-559 Demangeot, C., Broderick, A J (2007) Conceptualising consumer behaviour in online shopping environments International Journal of Retail & Distribution Management, Vol 33, No l 1, Pp: 878-894 Dennis, C., 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Morris, Davis, & Davis (2003) User Acceptance of Information Technology: Toward a Unified View MIS Quarterly, Vol 27, No 3, Pp 425 311 ... behaviour in online have lagged behindhand The lack of substantial development of online purchasing market as well as online customers behaviour theory, indicates to the investigation of online. .. significant in this collaborating channel Millions are new customers are joining in online shopping environment with billions of existing customers and due to this reason purchasing trends are changing... customers behaviour model in online to assist the accepting of customers online purchasing behaviour 310 Conclusion This paper aims to analyse and explore factors that influence customer’s online