Factors Influencing Online Buying Behavior

1. Supervised By: Dr. Tarun Kanti Bose
Khulna University
Name: Mst. Lubna Aktar
ID: 180318
Program: MBA
“Factors Influencing Online
Buying Behavior”

2. Statement of the problem:
 ICT has changed business pattern and the ways of analyzing and buying of
product and services. E- commerce has been rapidly growing each year
because of its wide spread activities like shopping, bill payment,
information search, online games etc.
 When the ongoing pandemic (Corona) has locked the entire world, online
business has spread its arena rapidly by increasing its sales from 70% to
80% compared to the regular time. Bangladesh is expected to hit USD 3
billion mark by 2023. The market will reach to TK 70 billion (TK 7000
crore) by 2021(e-CAB).
 Some of the popular e-commerce sites in Bangladesh are bikroy.com,
foodpanda, darz, chaldal, bagdoom, boimela, rokomari.com, sahoj etc.

3. Background of the Study
 Due to the wide-spread access and use of internet, online business is
getting popularity day by day. But wider reach is not enough to
attract and satisfy huge customers. Consumers are more eager to get
proper services through online as they provide attractive product
with lesser price on time to the right person.
 The study will try to find out dominating factors that influence
consumer buying behavior. Also it will highlight the factors that
motivate customers to purchase from online. It also finds out
whether there is any significant influence of identified factors on
online buying behavior in terms of different demographic
informations.
 Factors identified in this research are availability, comparison, price,
tome savings, customer services, quality of product advertised,
privacy, coupon or discount, 24/7 access, availability of information,
trust, brand image and credibility endorsement.

4. Scope of the study:
 The study on “Factors Influencing Online Buying Behavior”
identifies the important factors that influence customer’s perception
towards online business.
 This study will help the entrepreneurs those are providing online
services to the customers.
 It also emphasizes on those factors which customers consider
important in making purchase so that online business people can
retain more customers.

5. Identify the factors that affect
online buying behavior of
consumers.
Identify whether any
significant difference exists
among customers’ perception
towards online buying
behavior in terms of different
demographic variables.
Objectives of the study:
Variables of the Study:
Independent Variables Dependent
Variables
Availability, comparison,
price, time savings,
customer services,
quality of product
advertised, privacy,
coupon or discount, 24/7
access, availability of
information, trust, brand
image and credibility
endorsement
Consumer’s
online buying
behavior

6. Reviewed Literatures to Identify Factors of the Study
Factors Identified Authors
Availablity Jadav and Khanna(2016), Vilasini et. al.
Comparison Jadav and Khanna(2016), Vilasini et. al.
Price Agyapong (2017), Jadav and Khanna(2016), Dinu et. al., Vilasini et. al., Md
Asaduzzaman
Time Savings Dange and Kumar, Jadav and Khanna(2016), Vilasini et. al.
Customer Service Jadav and Khanna(2016), Vilasini et. al.
Quality of the Product Ahmed et. al. (2017), Dinu et. al.
Privacy Agyapong (2017), Dange and Kumar
Coupon or Discount Jadav and Khanna(2016)
Availablity of Information Agyapong (2017), Jadav and Khanna(2016), Eternal et.al.
Trust Agyapong (2017), Dange and Kumar, Vilasini et. al.,Jadav and
Khanna(2016),
Brand Image Dange and Kumar, Ahmed et. al.(2017), Dinu et. al., D. N. Priya,
Credibility Endorsement D. N. Priya,

7. Methodology
Nature of the study: The study is explanatory in nature.
Method of the Study: Survey method
Study Area: 50 percent of data has collected from online and another 50
percent from offline.
Unit of Analysis: Data has collected from both male and female students,
housewives, employers.
Population and sample size: Sample size is 100 where students,
housewives and online employers are included.
Sources of Data: Primary and secondary sources
Techniques of Data Collection: Both open and close ended questions are
used along with a likeart questionnaire.
Analysis and Interpretation of Data: Statistical technique by using
different software like (SPSS-22, and MS Word etc.)

8. Results and Discussions
 Reliability Test (Cronbach alpha): Overall Cronbach α for the 42 items
under 13 variables considered in this is estimated at 0.927, which could be
regarded as very good reliability and adequate for the study.
Cronbach’s Alpha N of Items
0.927 42

9. Results and Discussions cont’d
 Descriptive Statistics: Descriptive Statistics of dependent variable
shows the mean value is 4.0200 that states most of the respondents
agreed with the statement provided under online buying behavior.
The standard deviation of online buying behavior is .65490 which is
one standard deviation below the mean.
Mean Std. Deviation
Online buying behavior 4.0200 .65490

10. Descriptive Statistics of independent
variable shows the mean value stand
between 1 to 5 range. The mean value of
availability, comparison, time savings,
coupon or discount, 24/7 access is above
4 that means they are agreed. In case of
time savings, quality and trust most of
the respondents are neutral position.
The variables availability, comparison,
time savings, price, privacy, coupon or
discount, 24/7 access and availability of
information have standard deviation
below 1 that means the values are one
standard deviation below the mean. The
remaining variables have value above 1
that means the values are one standard
deviation above the mean
Mean Std. Deviation
Availability 4.1733 .61860
Comparison 4.1212 .77876
Price 3.7900 .96592
Time savings 4.0267 .74261
Customer
Service
3.4733 1.09706
Quality of
product
advertised
3.3233 1.12761
Privacy 4.1300 .66649
Coupon or
Discount
4.1200 .70515
24/7, Access 4.0833 .74667
Availability of
information
3.8600 .97117
Trust 3.4933 1.19340
Brand Image 3.7567 1.03024
Credibility
endorsement
3.8550 1.12208
Results and Discussions cont’d

11. Results and Discussions cont’d
Correlation Analysis:
 Overall findings from correlation reveal
that all the thirteen variables have
positive relationship with their dependent
variable (online buying behavior)
 The factors availability, price, privacy,
coupon or discount, 24/7 access have a
strong positive relationship with online
buying behavior.
 Comparison, trust, time savings has
moderate positive relationship where
customer service, quality of the product,
availability of information, brand image
and credibility endorsement has weak
positive relationship with online buying
behavior.
Variables Pearson
Correlation
Availability
.681
Comparison
.465
Price .511
Time Savings .485
Customer Service
.185
Quality of the Product
.254
Privacy
.505
Coupon or Discount
.591
Availability of Information
.169
24/7, access
.506
Trust
.366
Brand Image
.281
Credibility Endorsement
.212

12. Results and Discussions cont’d
Regression Analysis:
Regression shows that there is positive correlation between the thirteen
factors and online buying behavior. 50.5% changes in online buying
behavior can be explained by these thirteen factors.
Overall result of regression indicate positive and statistically significant
relationship as (F=8.675, P<.05).
Regression Analysis Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .755a .570 .505 .46185
Model Sum of Squares Df Mean Square F
Regression 24.056 13 1.850 8.675
Residual 18.131 85 .213
Total 42.187 98

13. Results and Discussions cont’d
Model Standardized
Coefficients beta
Sig.
(Constant) .271
Availability .485 .000
Comparison .040 .689
Price .127 .191
Time Savings .022 .835
Customer Service .012 .899
Quality of the Product .041 .605
Privacy -.012 .923
Coupon or Discount .204 .041
Availability of
Information
-.020 .853
24/7, access -.107 .294
Trust .035 .769
Brand Image .090 .458
Credibility Endorsement .049 .596
The regression also reveals that
availability, comparison, price,
time savings, customer services,
quality of product advertised,
coupon or discount, trust, brand
image and credibility endorsement
factors has positive influence on
online buying behavior.
On the other hand, privacy, 24/7
access, availability of information
have negative influence on online
buying behavior.

14. Results and Discussions cont’d
One-way ANOVA Test:
 There is significant influence of the thirteen factors on online buying
behavior in terms of gender and profession except privacy in terms
of profession.
 There is significant influence of availability, price, customer
services, coupon or discount, 24/7 access on online buying behavior
in terms of age.
 There is no significant influence of time savings, privacy,
availability of information, trust, and brand image and credibility
endorsement on online buying behavior in terms of age.
 There is a significant influence of price, time savings, privacy,
customer service and trust on online buying behavior in terms of
internet usage.

15. Conclusion
 In conclusion, it can be said that online business in
Bangladesh is growing at a faster rate. People are getting
interested on online purchase.
 The identified factors have a great influence on customers.
These factors push people to make purchase from online.
 In near future, Bangladesh will enjoy the blessings of
internet based communication technology through online
business.

16. References
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