Rashna_ResearchPdf.pdf

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FACTORS AFFECTING THE ONLINE BUYING BEHAVIOR OF
CUSTOMERS IN NEPAL
(WITH REFERENCE TO CUSTOMERS BUYING BEHAVIOR ONLINE)
A THESIS
SUBMITTED BY
RASHNA MAHARJAN
MATRIC No: 05201900003
SUBMITTED TO
HIMALAYAN COLLEGE OF MANAGEMENT
KAMALPOKHARI, KATHMANDU
AFFLILIATED TO INFRASTRUCTURE UNIVERSITY KUALA LUMPUR
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE AWARD OF
MASTERS OF BUSINESS ADMIISTRATON (MBA)
November, 2022

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DECLARATION
I hereby declare that the project work report entitled “FACTORS AFFECTING
THE ONLINE BUYING BEHAVIOR OF CUSTOMERS IN NEPAL” submitted
for the MBA is my original work and the project report has not found the basis for the
award of any degree, diploma, or other similar titles.
..........................................
Signature:
Name: Rashna Maharjan
Matrix Number: 05201900003
Date: Nov 2022

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ACKNOWLEDGMENT
The research entitled “FACTORS AFFECTING THE ONLINE BUYING
BEHAVIOR OF CUSTOMERS IN NEPAL” has been prepared under the graduate
research project as partial fulfillment of Master of Business Administration (MBA)
under program of faculty management, IUKL University. I would like to express my
deepest appreciation to all those who provided me the possibility to complete this
report.
I extend my profound gratitude to Prof, Khageshyor Khanal, my supervisor, for his
support, encouragement and assistance during the entire report. I want to thank him
for his valuable advice and suggestions on completing this research project.
Furthermore, I would like to acknowledge with much appreciation to Infrastructure
University for providing this opportunity and contributing in stimulating suggestions
and encouragement. Because of this opportunity I was able to expand my knowledge
on this topic and got to have skills of research techniques and documentation.
I also want to thank the Himalayan College of Management for giving me the
opportunity to use the accumulation of knowledge for this research project during my
MBA course. I would also like to thank college library for providing me with access for
this research project via useful books, journals and other materials.
I would like to extend my regards to all the team of HCM MBA department for their
timely support. My thanks and appreciations also go to each and every one of our
colleagues for their encouragement and support.
Rashna Maharjan

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ABSTRACT
This research paper is intended to study behavior of customers towards online buying
in Nepal. Online buying is the emerging concept which is increasing significantly
with the development and ease use and access of technology to every corner of the
world. The pandemic period has drastically changed people’s daily life routines and
struggle. This has obviously impact the way of business and behavior of buying too.
Although online buying was not new concept it had boomed during the pandemic. Not
only the situations, but there are many other factors influencing consumer’s behavior
for buying online like price, convenience, trust, platform or media used, delivery and
return facility. This study utilizes quantitative method for primary data collection
which include questionnaire from consumers as to find out the factors that influence
consumers to purchase online. This paper examines the key factors which affect
buying motives of consumers for online buying or E- shopping. For this purpose,
different models from different research scholars have been studied. One online
consumer buying behavior motive model, (FFF Model), has been designed and
suggested on the basis of existing review of literatures. Future research could use our
suggested factors (F), filtering elements (F) and then filtered buying behavior (F),
(FFF Model) framework as a basis to empirically explore the factors affecting the
online consumer purchasing process and to test the suggested model by the interested
researchers in the relevant area of research
Keywords: online buying, consumer behavior, influencing factors, risk return,
delivery, platform, trust and transparency, convenience.

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TABLE OF CONTENTS
DECLARATION...........................................................................................................ii
ACKNOWLEDGMENT.............................................................................................. iii
ABSTRACT..................................................................................................................iv
TABLE OF CONTENTS...............................................................................................1
LIST OF TABLES.........................................................................................................3
TABLE OF FIGURES...................................................................................................5
CHAPTER I...................................................................................................................7
INTRODUCTION .........................................................................................................7
1.1 Background of the Study......................................................................................7
1.2 Statement of the problem .....................................................................................8
1.3 Research questions...............................................................................................8
1.3 Objectives of the study.........................................................................................8
1.4 Significance of the study......................................................................................8
1.5 Limitations of the study........................................................................................9
1.6 Organization of the study.....................................................................................9
CHAPTER II................................................................................................................11
LITERATURE REVIEW ............................................................................................11
2.1 Conceptual Review ............................................................................................11
2.2 Operational Review............................................................................................13
2.1.1 Independent Variables.................................................................................15
2.2.3 Dependent Variables....................................................................................17
2.3 Conceptual Framework ......................................................................................17
2.4 Research Hypothesis ..........................................................................................18
2.5 Research Gap......................................................................................................19
CHAPTER III ..............................................................................................................20
RESEARCH METHODS ............................................................................................20
3.1 Introduction........................................................................................................20
3.2 Research Methodology.......................................................................................20
3.3 Research Design.................................................................................................20
3.4 Study Population ................................................................................................20
3.5 Sampling Techniques.........................................................................................21
Sample size...........................................................................................................21
3.6 Data collection procedure...................................................................................21
3.6 Data Analysis .....................................................................................................21

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CHAPTER IV..............................................................................................................22
DATA ANALYSIS......................................................................................................22
4.1 Data Collection...................................................................................................22
4.2 Profile of the research sample ............................................................................23
4.2.1 Age...............................................................................................................23
4.2.2 Education.....................................................................................................24
4.2.3 Income Level...............................................................................................24
4.3 Independent Variables........................................................................................25
4.3.1 Economic Factors ........................................................................................25
4.3.2 Trust.............................................................................................................30
4.3.3 Availability..................................................................................................35
4.3.4 Convenience and Delivery...........................................................................40
4.4 Dependent Variable............................................................................................45
4.4.1 Customer Behavior......................................................................................45
4.5 Correlation Analysis...........................................................................................50
4.6 Regression Analysis...........................................................................................51
4.6.1 Significance Test Results.............................................................................53
4.6.2 Partial Test Results......................................................................................54
4.6.3 Coefficient of Determination Test Results ..................................................54
CHAPTER IV..............................................................................................................56
SUMMARY, FINDINGS AND CONCLUSION........................................................56
5.1 Summary ............................................................................................................56
5.2 Findings..............................................................................................................56
5.3 Conclusion..........................................................................................................56
5.4 Implications for further research........................................................................56
5.5 Recommendations..............................................................................................57
REFERENCES ............................................................................................................58
APPENDIX QUESTIONNAIRE.................................................................................60

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LIST OF TABLES
Table 1 Age of the respondents ...................................................................................23
Table 2 Education levels of the respondents................................................................24
Table 3 Income level f respondents .............................................................................24
Table 4 Responses if online representative is flexible with pricing ............................25
Table 5 Responses if Pricing of online product is affordable......................................26
Table 6 Responses if respondents can negotiate with representative of online business
......................................................................................................................................27
Table 7 Responses if .Online business provides its products with discounts ..............28
Table 8 Responses if Offers (buy one get one free) are being provided in festivals ...29
Table 9 Responses if respondents got what I order .....................................................30
Table 10 Reponses if respondents trust purchasing from online business...................31
Table 11 Responses if Online business provides service what they promised............32
Table 12 Responses if Online products are of good quality........................................33
Table 13 Responses if respondents receive defective products from online ...............34
Table 14 Responses if respondents can easily find the product I am looking for .......35
Table 15 Responses if respondents only buy online via social media.........................36
Table 16 Responses of respondents can order as many products as per my requirement
......................................................................................................................................37
Table 17 Responses if respondents search information from google for my needed
products........................................................................................................................38
Table 18 Responses if Online business provide 24/7 service......................................39
Table 19 Responses if respondent's order is delivered on time ...................................40
Table 20 Responses if Online business supply outdated products ..............................41
Table 21 Responses if All the demanded products are delivered at once....................42
Table 22 Responses if Online business provides products on our timeframe .............43

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Table 23 Responses if Delivery options that respondent prefer is Doorstep...............44
Table 24 Responses if Customers prefer quality products in cheaper price ................45
Table 25 Responses if Customer loves online buying instead of visiting stores.........46
Table 26 Responses if Customers find the required items in few steps of searching..47
Table 27 Responses if Customers are happy with delivery service of online businesses
......................................................................................................................................48
Table 28 Responses if Customers can’t easily exchange or return products...............49
Table 29 Correlation Table ..........................................................................................50
Table 30 Regression analysis - Model Summary ........................................................52
Table 31 ANOVA Test................................................................................................53
Table 32 Coefficient of determination of test results...................................................54

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TABLE OF FIGURES
Figure 1 Conceptual Framework .................................................................................18
Figure 2 Age of the respondents..................................................................................23
Figure 3: Education level of the respondents...............................................................24
Figure 4 Income level of the respondents....................................................................25
Figure 5 Responses if online representative is flexible with pricing...........................26
Figure 6 Responses if Pricing of online product is affordable.....................................27
Figure 7 Responses if respondents can negotiate with representative of online
business........................................................................................................................28
Figure 8 Responses if .Online business provides its products with discounts.............29
Figure 9 Responses if Offers (buy one get one free) are being provided in festivals..30
Figure 10 Responses if respondents got what I order..................................................31
Figure 11 Reponses if respondents trust purchasing from online business .................32
Figure 12 Responses if Online business provides service what they promised...........33
Figure 13 Responses if Online products are of good quality.......................................34
Figure 14 Responses if respondents receive defective products from online..............35
Figure 15 Responses if respondents can easily find the product I am looking for......36
Figure 16 Responses if respondents only buy online via social media........................37
Figure 17 Responses of respondents can order as many products as per my
requirement ..................................................................................................................38
Figure 18 Responses if respondents search information from google for my needed
products........................................................................................................................39
Figure 19 Responses if Online business provide 24/7 service.....................................40
Figure 20 Responses if respondent's order is delivered on time..................................41
Figure 21 Responses if Online business supply outdated products.............................42
Figure 22 Responses if All the demanded products are delivered at once ..................43

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Figure 23 Responses if Online business provides products on our timeframe...........44
Figure 24 Responses if Delivery options that respondent prefer is Doorstep..............45
Figure 25 Responses if Customers prefer quality products in cheaper price...............46
Figure 26 Responses if Customer loves online buying instead of visiting stores........47
Figure 27 Responses if Customers find the required items in few steps of searching.48
Figure 28 Responses if Customers are happy with delivery service of online
businesses.....................................................................................................................49
Figure 29 Responses if Customers can’t easily exchange or return products..............50

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CHAPTER I
INTRODUCTION
1.1 Background of the Study
With the emergence of new technology, new modes have been introduced in Nepal to
facilitate people. The Internet has introduced developed and easy methods with the
help of electronic means for online buying. Research assumes that this decade has
witnessed the great evolution of e-commerce. E-commerce refers to acquiring, selling
and soliciting products and services through the internet. In Nepal the amount of trade
through e-commerce is increasing gradually. E-commerce includes an array of
services and trades like supply chain management, transferring of funds and
marketing over the internet etc.
With the emergence of smartphones, tablets and laptops, online buying is
experiencing constant increase. All the big and small brands, organizations and
institutes are tapping into the power of e-commerce in Nepal. E-commerce and online
buying provide people with feasible solutions to buy and sink into business in
different sectors of Nepal. Number of online buying websites like daraz.com,
homebuying.com, sastodeal.com, choicemandu.com and many more have introduced
online buying and have increased their number of sales through e-commerce. The
customers can likewise benefit from an assortment of administrations for
correspondence, consultancy etc.
As the recent researches have indicated that, the internet shopping particularly in
business to consumer (B2C) has risen and online shopping become more popular to
many people. According to the report, The Emerging Digital Economy II, published
by the US Department of Commerce, in some companies, the weight of e-commerce
in total sales is quite high. For instance, the Dell computer company have reached 18
million dollars’ sales through the internet during the first quarter of 1999. As a result,
about 30% of its 5.5 billion dollars’ total sales were achieved through the internet
(Moon, 2004). Therefore, to understand the buying motives for internet shopping is a
must.
In terms of theory this research paper aims to provide a realistic understanding of the
factors which affect the online buying behaviors of consumers in Nepal. And in terms

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of practice this study will attempt to present strategic implications and directions for
the sake of development of online buying in Nepal.
1.2 Statement of the problem
In Nepal, however, literate and educated people who use internet services daily for
different resolutions seem to be reluctant to purchase products via the internet. With
more than 20.4 million internet users the trend of e buying has not been widely
accepted by consumers. With such immense growth and popularity of the internet
what are those major barriers that are blocking local consumers to buy and order
online. This study has attempted to comprehend the consumers’ approach towards
online buying and their decisions regarding it. The major concerns that motivate or
demotivate the consumers to buy on the internet and the extent these concerns
influence the consumers’ attitudes and identify the causes behind the delay or haste in
making the ordering decision.
1.3 Research questions
Related questions are follows:
1. Which factors affect the online business in Nepalese online markets?
2. How does getting ordered products with quality affect online business?
3. What are the effects of price tagged for the products to customer behavior?
4. How easy it is to order online and get the items delivered?
5. What are the major factors affecting the customer satisfaction towards online
buying in Nepal?
1.3 Objectives of the study
1. To identify the factors which affect the online business in Nepalese online
markets.
2. To find out effect of online buying in daily life of people.
3. To find the effect of price tagged for the products.
4. To find how easy it is to order online and get the items delivered.
5. To examine the major factor affecting the customer satisfaction towards online
buying in Nepal
1.4 Significance of the study
The research is going to address an emerging trend of e-buying in Nepal and would be
beneficial for the retailers in many ways. Once the factors that guide the online

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buying behavior of consumers are analyzed marketers would be able to formulate the
strategies in order to attract the consumers’ attention accordingly. Marketers would be
able to directly address the purchase and selling points in order to improve the current
state of these points. According to a researcher with the help of internet companies
can cross the physical borders and can virtually reach every state and area of the
world; which eventually help them in accessing every kind of consumer for their
products (Ghorbani, A., & Bonab, M. B., 2013).
Another important contribution would be the comparison of the characteristics of
traditional and virtual buyers. Marketers’ selling and advertising activities would be
engaged in the correct direction when they will be fully aware of their buyers’ needs
and preferences while using internet as a buying standard (Sen, R., King, R. C., &
Shaw, M. J. 2006).
Other groups that can take advantage from the study are as follows:
1. Business persons
2. Entrepreneurs
3. Investors
4. Planners
5. New consumers trying to buy online
1.5 Limitations of the study
Some limitations of the study are:
1. Real data is hard to get as customers are new to technology
2. Limited time constraints to prepare the document
3. Insufficient sample size for statistical measurements
4. Lack of previous research studies on the topic
5. No experience in data collection, analysis and preparing research paper
1.6 Organization of the study
This study will be conducted in 5 chapters they are:
1. Introduction: Problem statement, objectives of the study, significance of the
study, and limitations of the study is described in this section

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2. Literature Review: Conceptual review, operational review are described by
studying the existing research papers along with conceptual framework,
research hypothesis and research gap are detailed in this section.
3. Research Methods: Research methodology, research design, population and
sample data along with instruments are described here.
4. Data Analysis: Questionnaire for survey, data collection and manipulation
are described in this section
5. Summary, Findings and Conclusions: Summary, Findings and conclusion
driven from above data analysis are detailed here.

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CHAPTER II
LITERATURE REVIEW
2.1 Conceptual Review
The new method of electronic commerce is “s-commerce”. S-commerce is called
social commerce. Social commerce contains social media or online media. It
maintains social collaboration and customer’s involvement which helps online
purchasing and vending of the products and the services (Shen and Eder 2012).
Over the past few decades, the Internet has developed into a vast global market place
for the exchange of goods and services. In many developed countries, the Internet has
been adopted as an important medium, offering a wide assortment of products with 24
hour availability and wide area coverage. In some other countries, such as India,
however business-to-consumer (B2C) electronic commerce has been much below
than anticipated proportion of total retail business due to its certain limitations (Sylke,
Belanger, and Comunale 2002).
During 2009 Indian retail market size was the 5th largest market globally and was
valued at US $400 billion. According to a report by global consultancy Northbridge
Capital, it is projected to grow to US $700 billion by 2010. In 2008, the share of
organized retail was 7.5 per cent or US $300 million of the total retail market which is
expected to be 20 per cent of the total retail market by 2010. Retail business is
supposed to contribute 22 per cent to the Indian GDP by the end of 2010 (Indian
Council for Research on International Economic Relations. (ICRIER).
A research carried out by Shranck, Huang and Dubinsky in 2006 showed that people
who did online buying were technically exposed to a lower amount of risk than those
who would buy directly. The reliability of an online source depends upon the
reception of orders, prompt responses and timely deliveries; it also included the
security of personal information of the clients. (Parasuraman et al., 1988; Janda,
Trocchia, & Gwinner, 2002; Kim & Lee, 2002).
In the study conducted by (Khaniwale, 2015) about consumer behaviour, he says that
both external and internal factors have significant influence on consumer’s behaviour
which impacts their purchasing process and decision. Having an insight into these
factors enables marketers

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to better know and predict not only the demand of their product or service, but also
the purchasing motives and purchasing frequency of the product or service. More
importantly, if these factors are 113 considered whilst developing new products, it
will support in developing products with higher probability of success.
Choudhury and Dey (2014) highlighted that there is a significant relationship between
online buying with gender, internet literacy, and online product price. Similarly, the
study also highlighted that there is no significant relationship between online buying
with education and website usability. The study used the Chi-square test to evaluate
the relationship between the variables.
Sin, Nor and Al-Agaga (2012) examined factors that influence Malaysian young
consumers’ online purchase intention through social media and revealed that
perceived usefulness was the most dominant factors that influence young consumers’
online purchase intention through social media, followed by perceived ease of use and
subjective norm. They adopted the concept of factor analysis to derive the factors
related to the purchase intention and a regression analysis was conducted to test the
hypothesis.
Cetină, Munthiu, and Rădulescu (2012) concluded that electronic commerce (e-
commerce) has determined great changes in consumer behavior, changes caused
mainly by the modification of factors that influence online consumer behavior. They
also stated the web experience generates mutations in mental processes that trigger the
online buying decision. They conducted the survey on the behavioral dimensions of
the online buyers through the major social media.
Bashar and Wasiq (2013) studied the impact of emotional state and perceived risk of
remote purchase on e-satisfaction during internet buying using the correlation and
regression analysis. It aimed to study the influence of e-satisfaction on e-loyalty. The
results showed that three dimensions of the emotional state during internet buying (the
pleasure, stimulation, and dominance) have a significant positive impact on e-
satisfaction. Dimensions of the perceived risk of the remote purchase, (the total risk,
the financial risk, the social risk, the psychological risk, the functional risk, and the
physical risk) do not have a significant impact on e-satisfaction, except the risk of loss
of time has a negative impact. Finally, it was found that satisfaction influenced
positively and significantly the e-loyalty of cyber consumers.

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Bhatnagar and Colleagues (2000) provided with an evidence that demographic in
figuring out which store to patronize or how much to spend, however men and ladies
do tend to purchase distinctive sorts of items or goods and services by means of the
Internet. In simple words, the research proposes that the effect of demographics on
Internet purchasing conduct is not very solid.
Jayasubramanian, Sivasakthi, and Ananthi (2015) concluded that the success of online
buying essentially depends on customer satisfaction during their purchase. They also
found that especially, understanding customer’s need for online selling has become a
challenge for marketers working at online buying business. They used simple
percentage and ranking analysis to interpret the surveyed data.
People purchase products and services are the most based on their level of trust in this
product or services, and sellers either in the physical store or online shops. Online
trust is the basic and essential element for building a relationship with customers. A
present research shows that online trust is lower level than the face-to-face
interactions in the physical store (Cassell and Bickmore, 2000), and the result from
Cheung and Lee (2006) shows that trustworthiness of Internet merchant (perceived
integrity, perceived competence, and perceived security control) and external
environment (third-party recognition and legal framework) have considerable impact
on consumer trust in Internet shopping.
The trustworthiness of E-commerce web site is very relying on the how much privacy
security can be provided. For example, a highly technical competence can be a factor
to influence the trustworthiness (Singh and Sirdeshmukh, 2000). As data leak issue is
leading for various issues. So, trust is major factor for consumers while buying online.
2.2 Operational Review
Karim (2013) concluded that the customer’s purchase products through online
because they believe it is convenience to them and the term convenient includes
elements such as time- saving, information availability, opening time, ease of use,
websites navigation, less buying stress, less expensive and buying fun. In contrast,
along with respondents’ mind-sets, online payment security, personal privacy and
trust, unclear warranties and returns policies and lack of personal customer service are
the foremost barriers of online buying. The result was brought using the one-sample t-
test.

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Goldsmith and Bridges (2000) emphasized that there is discrimination between an
online buyer and non-online buyers, online buyers are more worried about
convenience, time- saving and selection whereas non-online buyers are worried about
security, privacy and on time delivery. The study used the five-point Likert scale to
conduct the survey among the undergraduate students at university.
(Parasuraman et al., 1988; Janda, Trocchia, & Gwinner, 2002; Kim & Lee, 20 02).
The study defines reliability, in the simplest possible words, as the ability of an online
source like a website to correctly and promptly provide the customers with promised
services and guarantee the security of online transaction.
Bhuyan (2016) revealed using simple pie-chart presentation that online buying in
online is significantly affected by various factors like product information, variety of
products offered,
quality of products offered, price of products, offers and discount offered, advertising,
safe online payment, speed of delivery, cash on delivery, convenience of buying at
home, time saving, website response speed, information of seller, website interface,
after sales service and feedback.
Savarimuthu and Devi (2016) endeavored to understand customer satisfaction in
online buying while investigating the major reasons that motivated customers’
decision-making processes as well as inhibitions of online buying. It was discovered
through percentage analysis that respondents use the internet to purchase products
through online because they believe it is convenience to them and the term convenient
includes elements such as time- saving, information availability, opening time, easy to
use, websites navigation, less buying stress, less expensive and buying fun. In
contrast, along The Journal of Nepalese Business Studies 75 with respondents’ mind-
sets, online payment security, personal privacy and trust, unclear warranties and
returns policies and lack of personal customer service are the foremost barriers of
online buying. They also found that home page presentation and web security plays an
important role in the frequency of uses of online portal for buying through chi- square
test.
Fortes and Rita (2016) analyzed using seven points Likert scale how privacy concerns
about the internet have an impact on the consumer’s intention to make online
purchases. The study found through the correlation coefficient analysis that the desire

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to use e-commerce suffered the positive impact of perceived usefulness, perceived
behavioral control and attitude. The results also demonstrated the connection of
privacy concerns to the trust-risk model, through its significant direct negative impact,
on trust, and its positive impact on perceived risk.
Al-Jahwari, Khan, Al Kalbani, and Al Khansouri (2018) revealed that the major
influencing factor of comfort and satisfaction to the online youth customers were
perceptions of confirming the product quality, and service guarantee influenced. The
study also revealed that the service tangibility concerning the guaranteed package and
delivery process along with the lowest price motivated them to go for online buying
repeatedly using Chi-square analysis, ANOVA and Kolmogorov-Smirnov ranking
analysis for the data collected from the 120 online buyers of Oman.
2.1.1 Independent Variables
An independent variable is the variable you manipulate, control, or vary in an
experimental study to explore its effects
1. Economic Factor: Economic Factor is an important factor in online buying
(Bauboniene & Guleviciute, 2015). It influences on buying behavior of
consumers while purchasing boutique products. Customers can find a wide
range of goods and services at online stores. People look for their budget and
the value of a specific garment for obvious reasons (Jamal et al., 2013). It
allows consumers to compare.
2. Availability of Products Risk: An unintended consequence of such high
utilization of resources, and one that managers overlook, is major delays in
product development. The authors argue that a project’s speed, efficiency
and output actually decline the more managers’ capacity is being stretched
across multiple development projects. This is largely due to the realities of
product development work – many aspects are unpredictable. The more
stretched the product development team, the less able they are to deal with
managing these unpredictable events.
3. Convenience: It is very difficult for consumers at times to find the right
product which gives birth to a lot of fears. Customers often feel they what is
going to happen if they won’t be able to wait until the goods and services
arrive. They also feel that there are risks of disputes and they won’t be able

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to file one if the product or the services they receive is not up to the mark
(Haider, A., & Nasir, N. 2016). Forsythe contended that it is not easy to
cancel online orders due to which customers don’t feel safe because it is not
as convenient as buying in a physical setting. There is a lot of absence of
trust in the judgment of internet buying, which is negative in some cases
when exchange procedure is happened. It might be a postponement in online
buying for the accepting a product (Forsythe, Liu et al. 2006).
4. Technology or Media Used: The degree, to which a customer assumes that
no effort would be needed to use the system, with effort encompassing both
physical and mental effort, and how simple it is to learn to use the system, is
referred to as ease of use (Davis, 1989). According to Bigne-Alcniz, et.al,
(2008) websites should provide sufficient details without being
overwhelming. Using unstructured or irrelevant information on a website
reduced the utility and ease of use of the internet.
5. Non delivery: Delivery cost was identified as a fixed cost by Bell, D.R., Ho,
T.H. & Tang, C.S. (1998) and consumers always try to forgo these costs. A
large proportion of people will not prefer to pay these costs for online
buying which is stated by Oppewal, (2006). So this delivery charge factor
can affect the intention to buy online. In a study done by Reibstein, (2002) it
was found out that on-time delivery and shipping and handling are ranked to
be moderately important to predicting the consumers’ satisfaction and
intention as compared to the price factor. There is likewise lost conveyance
of merchandise to wrong individuals at wrong place. The other component is
that a firm or association does not meet their guarantee of day and age. It
delays. Amid the delivery procedure the items might be hurt. Its pressing
may not be appropriate as it ought to (Claudia 2012).
6. Trust and Transparency: Trust is an especially important factor under
conditions of uncertainty and risk. Internet buying, as a modern medium of
commercial operation, entails more confusion and risk than conventional
buying. Many studies have described the creation of trust as a critical but
unsolved problem in the evolution of online buying (Lee & Turban, 2001).
One way to make a website more trustworthy was to use E-trust. It was one
of the ways to make a website more trustable (Katawetawaraks & Wang,
2011).

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7. Risk Return policy: The easiest approach to deal the products electronically
is just to guarantee about "Cash Back Guarantee". It is the way which
guarantee purchasers on the off chance that they are not fulfilled by the item,
they can back their items whenever with no dithering. This strategy has
decidedly or contrarily effect on client's decision. Positive in this sense on
the off chance that they are not fulfilled the can back it. What's more,
negative in this sense on the off chance that they need to back the items it
might require a long investment to finish the entire procedure. (Rajeshwary
and Sayed).
2.2.3 Dependent Variables
The dependent variable is the variable that is being measured or tested in an
experiment.
1. Customer’s Buying Behavior: This attitude is responsible for determining
the future behavior of a consumer in making or not making a final purchase
decision. As a study on beliefs, attitude and intentions has proved that the
attitude is the most influential factor in the purchase decision by a consumer
(Fishbein, M., & Ajzen, I., 1975).
2.3 Conceptual Framework
A conceptual framework is like a roadmap for your study, helping you visualize your
research project and put it into action. It defines the relevant variables for your study
and maps out how they might relate to each other. A conceptual framework provides
the orientation to the study and assists both the researcher and the reader in seeing
how the study contributes to the body of knowledge on the topic, how elements of the
study align, and how the study design and methodology meet rigorous research
standards. In summary, a conceptual framework is incredibly important.

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Figure 1 Conceptual Framework
2.4 Research Hypothesis
A series of regressions were applied to analyze the relations between the predictors
(independent variables) and the dependent variables. The hypotheses and results are
as follows:
Hypothesis 1: Economic Factor particulars will have a positive effect on attitude
toward online buying.
Hypothesis 2: Trust of getting ordered product of good quality will have positive
effect on attitude toward online buying behavior
Hypothesis 3: The availability of product risk will have positive results towards
online buying behavior.
Hypothesis 4: Convenience toward user friendly online buying and good service of
delivery of order will have positive attitude towards buying online.
Hypothesis 5: Product return policy will have encouraging effect on attitude towards
buying online.
Economic Factor
Return Policy
Trust
Availability
Convenience and Delivery
Customer Behavior when
buying online
Independent Variables
Dependent Variable

19
2.5 Research Gap
Many researchers had researched about the factors influencing online buying
behavior. The research has been held about how the consumers has turned to online
buying and how the stores are also adopting the digital medium to expand the
business.
Most of the research paper conducted on the online buying are focused on the
preferences on the online buying among the respondents. The studies are mainly
related to illustrate the problems and prospects of online buying. Very few paper has
raised the points of issues that takes under online buying. Similarly, in context to
research on Nepalese online buying, the research gap is seen. Hence, this paper tries
to show the variables that mainly influence to prefer for online buying in Nepal.

20
CHAPTER III
RESEARCH METHODS
3.1 Introduction
This study is intended to study behavior of customers towards online buying in Nepal.
The research regarding Consumer’s attitude towards online buying is a descriptive as
well as survey research because the study just wants to draw a picture of our topic as
what are the factors that influence consumers to buy online.
To comprehend concepts, views, or experiences, quantitative research entails
gathering and evaluating numerical data. It can be used to get the research details on
the basis of numerical data. Qualitative research are done on the basis of past data
along with present data. Qualitative research is defined as a market research method
that focuses on obtaining data through open- ended and conversational
communication.
3.2 Research Methodology
This study will utilize quantitative method in the research because it is the faster as
compare to qualitative. The researcher used the primary data collection method that
will include questionnaire from consumers as what are the factors that influence
consumers to purchase online. As the study covers online buyers of Nepal so we feel
it would be easy for us to distribute the questionnaire and then analyze the situation.
3.3 Research Design
The framework of research methodologies and procedures adopted by a researcher is
known as research design. Researchers may focus on research methodologies that are
appropriate for the topic matter and set up their studies for success to the design.
MCQ model will help to gather more accurate data in this study.
3.4 Study Population
Population of the study was restricted to users of products purchased through online
buying. The researcher has used convenient sampling method for the sample. The
geographic territory was restricted to Nepal. The population for the research is Nepali
online buyers people in Nepal and keeping in view the limitation of time and
resources writers have decided to take the sample of 280 online buyers from Nepal.

21
Questionnaires were distributed both by online and by hand to respondents and
enough time given to respondents to fill the questionnaire to reduce sampling error.
3.5 Sampling Techniques
Sample size
Considering the nature of the study and the total population in the organization in the
head office a
n
d bole banking center to decide the amount of sample size (Yamane,
1967) sample size determination formula has been used where n is the sample size, N
is population size, and e is theerror of 5 percentage points and a confidence coefficient
of 95% are assumed for this equation.
𝑛 =
𝑁
1 + 𝑁𝑒2
= 280/1+280(0.05)2
= 165
Hence by utilizing the above formula, the calculated sample size was 150 and,
questioners were distributed according to table.
3.6 Data collection procedure
Data collection is done through structured questionnaire. The questionnaire is
distributed to random people to collect data. The questionnaire will be on the basis of
developed 5 points liker scale to know about customer’s satisfaction, convenience and
Trust on Digital Payment for Insurance premium.
3.6 Data Analysis
The collected data are analyzed using correlation, regression, descriptive analysis
method.

22
CHAPTER IV
DATA ANALYSIS
This chapter aims to interpret data collected through the survey questionnaire and
analyses the results together with the researched theories. It further summarizes the
findings according to the research objectives. MS Excel was used to process the data
and illustrate the findings using different charts and graphs.
4.1 Data Collection
Primary data collection for this research was online survey. Hence, questionnaires
were conceptualized on different aspects of buying behavior of consumers and
influence of pricing, convenience, technology or media, availability, return policy,
trust and delivery during their purchase behavior. The survey was sent via email to
close friends and relatives living in Nepal and via various popular Facebook groups
and pages to the targeted groups. As the survey was intended for consumers residing
in Nepal, it was posted in various Nepali Facebook pages which includes students,
non-students, part time and full time workers who currently lives in Nepal.
The questions on the survey were designed in a simple format where respondents
could answer easily. Except 4 questions, all questions were marked with a * which
was mandatory.
In the following section, survey structure is summarized and detailed information on
findings of survey and interview are analyzed, and finally results are presented.

23
4.2 Profile of the research sample
4.2.1 Age
Table 1 Age of the respondents
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Below 20 2 1 1 1
21-30 102 61.9 61.9 62.9
31-40 46 27.6 27.6 90.5
40 above 16 9.5 9.5 100
Total 165 100 100
Figure 2 Age of the respondents
The participant’s age ranged between below 20 to more than 40. As shown in the
diagram, the total targeted sample consisted of 165 people in which mode respondents
are represented by age group 21-30 followed by 31-40. That comes to 62% and 28%
of total respondents proportionately. On the contrary, the least number of participants
was from age less than or equals to 20 which accounts to 1% of total respondents.
There were 46 participants from age 21-30 and 16 respondents from age more than
40.
0
20
40
60
80
100
120
Below 20 21-30 31-40 40 above
Age

24
4.2.2 Education
Table 2 Education levels of the respondents
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Intermediate &
below
2 1 1 1
Bachelor Degree 79 47.6 47.6 48.6
Master Degree 85 51.4 51.4 100
Total 165 100 100
Figure 3: Education level of the respondents
For education of respondents, three options were provided as intermediate and below,
bachelor degree and master degree. As shown in the diagram, the total targeted
sample consisted of 165 people in which more respondents were found to be bachelor
and master graduate. That comes to 48% and 51% of total respondents
proportionately. On the contrary, the least number of participants was from education
less than or equals to intermediate which accounts to 1% of total respondents.
4.2.3 Income Level
Table 3 Income level f respondents
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Below 50000 91 55.2 55.2 55.2
50000-100000 58 35.2 35.2 90.5
0
10
20
30
40
50
60
70
80
90
Intermediate & below Bachelor Degree Master Degree
Chart Title

25
Above 100000 16 9.5 9.5 100
Total 165 100 100
Figure 4 Income level of the respondents
The participant’s income level ranged between below 50000 to more than 100000. As
shown in the diagram, the total targeted sample consisted of 165 people in which
mode respondents are represented by income level below 50000 and 50000 -10000.
That comes to 55% and 35% of total respondents proportionately. On the contrary, the
least number of participants was from income level of above 100000 which accounts
to at most 10% of total respondents.
4.3 Independent Variables
Four independent variables marked for this study are economic factors, trust,
availability and convenience and delivery.
4.3.1 Economic Factors
4.3.1.1 Online representative is flexible with pricing
Table 4 Responses if online representative is flexible with pricing
Frequency Percent
Valid
Percent
Cumulative
Percent
0
10
20
30
40
50
60
70
80
90
100
Below 50000 50000-100000 Above 100000
Income Level

26
Valid
Strongly Agree 6 3.8 3.8 3.8
Agree 42 25.7 25.7 29.5
Neutral 42 25.7 25.7 55.2
Disagree 52 31.4 31.4 86.7
Strongly Disagree 22 13.3 13.3 100
Total 165 100 100
Figure 5 Responses if online representative is flexible with pricing
Among 165 respondents most of them disagree with the statement that online
representative is flexible with pricing by 31% which is followed by neutral and agree
with same number of respondents that is 42 number of respondents. 22 respondents
strongly disagreed and 4% strongly agreed. Hence, online representative isn’t flexible
with customers for pricing.
4.3.1.2 Pricing of online product is affordable
Table 5 Responses if Pricing of online product is affordable
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 127 77.1 77.1 88.6
Neutral 14 8.6 8.6 97.1
Disagree 3 1.9 1.9 99
Strongly
Disagree
2 1 1 100
Total 165 100 100
0
10
20
30
40
50
60
Strongly Agree Agree Neutral Disagree Strongly Disagree
Online representative is flexible with pricing

27
Figure 6 Responses if Pricing of online product is affordable
Out of 165 respondents most of them agree with the statement that pricing of online
product is affordable by dominant number of respondents that is 77% which is
followed by strongly agree and neutral with by 11% and 9% respectively. 3
respondents disagreed and 2 of them strongly disagreed. Hence, pricing of online
product is affordable for customers.
4.3.1.3 I can negotiate with representative of online business
Table 6 Responses if respondents can negotiate with representative of online business
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Agree
24 14.3 14.3 14.3
Agree 101 61 61 75.2
Neutral 22 13.3 13.3 88.6
Disagree 19 11.4 11.4 100
Total 165 100 100
0
20
40
60
80
100
120
140
Pricing of online product is affordable

28
Figure 7 Responses if respondents can negotiate with representative of online
business
Out of 165 respondents most of them agree with the statement that I can negotiate
with representative of online business by dominant number of respondents that is 61%
which is followed by strongly agree and neutral with by 14% and 13% respectively.
19 respondents disagreed while none of them strongly disagreed. Hence, customers
negotiate with representative of online business.
4.3.1.4 Online business provides its products with discounts
Table 7 Responses if .Online business provides its products with discounts
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 112 67.6 67.6 83.8
Neutral 8 4.8 4.8 88.6
Disagree 9 5.7 5.7 94.3
Strongly
Disagree
9 5.7 5.7 100
Total 165 100 100
0
20
40
60
80
100
120
Strongly Agree Agree Neutral Disagree
I can negotiate with representative of online business

29
Figure 8 Responses if .Online business provides its products with discounts
Among 165 respondents most of them agree with the statement that online business
provides its products with discounts by 68% which is followed by strongly agree with
27 number of respondents. Approximately 6% are neutral, disagree and strongly
disagree each. Hence, online business provides sits products with discounts to their
customers.
4.3.1.5 Offers (buy one get one free) are being provided in festivals
Table 8 Responses if Offers (buy one get one free) are being provided in festivals
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Agree
13 7.6 7.6 7.6
Agree 58 35.2 35.2 42.9
Neutral 30 18.1 18.1 61
Disagree 49 29.5 29.5 90.5
Strongly
Disagree
16 9.5 9.5 100
Total 165 100 100
0
20
40
60
80
100
120
.Online business provides its products with discounts

30
Figure 9 Responses if Offers (buy one get one free) are being provided in festivals
Among 165 respondents most of them agree with the statement that offers (buy one
get one free) are being provided in festivals by 35% which is followed by disagree
with 30% and neutral with 18%. 13 respondents strongly agreed and 10% strongly
disagreed. Hence, offers are provided occasionally.
4.3.2 Trust
4.3.2.1 I got what I order
Table 9 Responses if respondents got what I order
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Agree
14 8.6 8.6 8.6
Agree 72 43.8 43.8 52.4
Neutral 49 29.5 29.5 81.9
Disagree 27 16.2 16.2 98.1
Strongly
Disagree
3 1.9 1.9 100
Total 165 100 100
0
10
20
30
40
50
60
70
Offers (buy one get one free) are being provided in
festivals

31
Figure 10 Responses if respondents got what I order
Out of 165 respondents 72 of them agree with the statement that I got what I order
which is 44% which is followed by neutral with 30% and disagree with 16%. 14
respondents strongly agreed and 3 out of all the respondents strongly disagreed.
Hence, most of the respondents got their order as expected and seen on the images.
4.3.2.2 I trust purchasing from online business
Table 10 Reponses if respondents trust purchasing from online business
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 74 44.8 44.8 50.5
Neutral 50 30.5 30.5 81
Disagree 31 19 19 100
Strongly
Disagree
0 0 0 100
Total 165 100 100
0
10
20
30
40
50
60
70
80
I got what I order

32
Figure 11 Reponses if respondents trust purchasing from online business
Among 165 respondents most of them agree with the statement that I trust purchasing
from online business by 45% which is followed by neutral with 31% and disagree
with 19%. 9 respondents strongly agreed. Hence, many of the respondent trust
purchasing from online business.
4.3.2.3 Online business provides service what they promised
Table 11 Responses if Online business provides service what they promised
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 66 40 40 44.8
Neutral 47 28.6 28.6 73.3
Disagree 41 24.8 24.8 98.1
Total 165 100 100
0
10
20
30
40
50
60
70
80
Strongly Agree Agree Neutral Disagree
I trust purchasing from online business

33
Figure 12 Responses if Online business provides service what they promised
Out of 165 respondents most of them agree with the statement that online business
provides service what they promised by 40% which is followed by neutral and
disagree with 29% and 25% respectively. 8 respondents strongly agreed and 3 of them
strongly disagreed. Hence, most of customer are getting the services that is promised
by online business.
4.3.2.4 Online products are of good quality
Table 12 Responses if Online products are of good quality
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 68 41 41 50.5
Neutral 44 26.7 26.7 77.1
Disagree 30 18.1 18.1 95.2
Strongly
Disagree
8 4.8 4.8 100
Total 165 100 100
0
10
20
30
40
50
60
70
Online business provides service what they promised

34
Figure 13 Responses if Online products are of good quality
Among 165 respondents most of them agree with the statement that online products
are of good quality by 41% which is followed by neutral with 27% and disagree with
18%. 16 respondents strongly agreed and 5% strongly disagreed. Hence, most of the
respondents are receiving good quality products from online business.
4.3.2.5 We receive defective products from online
Table 13 Responses if respondents receive defective products from online
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 64 39 39 41
Neutral 68 41 41 81.9
Disagree 28 17.1 17.1 99
Strongly
Disagree
2 1 1 100
Total 165 100 100
0
10
20
30
40
50
60
70
80
Online products are of good quality

35
Figure 14 Responses if respondents receive defective products from online
Out of 165 respondents most of them are neutral with the statement that we receive
defective products from online by 41% which is followed by agree with 39% and
disagree with 17%. 3 respondents strongly agreed and 1% strongly disagreed. Hence,
there is 50-50 chance of receiving defective products from online.
4.3.3 Availability
4.3.3.1 I can easily find the product I am looking for
Table 14 Responses if respondents can easily find the product I am looking for
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly Agree 33 20 20 20
Agree 47 28.6 28.6 48.6
Neutral 19 11.4 11.4 60
Disagree 58 35.2 35.2 95.2
Total 165 100 100
0
10
20
30
40
50
60
70
80
We receive defective products from online

36
Figure 15 Responses if respondents can easily find the product I am looking for
Out of 165 respondents most of them disagree with the statement I can easily find the
product I am looking for by 35% which is followed by agree with 29% and strongly
agree with 20%. 19 respondents were neutral and 8 of them strongly disagreed.
Hence, customers are not able to find the products easily they are looking for.
4.3.3.2 I only buy online via social media
Table 15 Responses if respondents only buy online via social media
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 79 47.6 47.6 69.5
Neutral 13 7.6 7.6 77.1
Disagree 20 12.4 12.4 89.5
Strongly
Disagree
17 10.5 10.5 100
Total 165 100 100
0
10
20
30
40
50
60
70
I can easily find the product I am looking for

37
Figure 16 Responses if respondents only buy online via social media
Among all the respondents most of them agree with the statement I only shop online
via social media by 48% which is followed by strongly agree with 22% and disagree
with 12%. 13 respondents were neutral and 17 of them strongly disagreed. As
maximum of the respondents are totally agreeing the fact that they only shop online
via social media there are few respondents those disagree with the statement.
4.3.3.3 I can order as many products as per my requirement
Table 16 Responses of respondents can order as many products as per my
requirement
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 55 33.3 33.3 41.9
Neutral 46 27.6 27.6 69.5
Disagree 44 26.7 26.7 96.2
Strongly
Disagree
6 3.8 3.8 100
Total 165 100 100
0
10
20
30
40
50
60
70
80
90
I only shop online via social media

38
Figure 17 Responses of respondents can order as many products as per my
requirement
Out of 165 respondents most of them agree with the statement I can order as many
products as per my requirement by 33% which is followed by neutral with 28% and
disagree with 27%. 14 respondents strongly agreed and 6 of them strongly disagreed.
This can be concluded that respondents can order as many products as per my
requirement as most of them has agreed upon the statement.
4.3.3.4 I search information from google for my needed products
Table 17 Responses if respondents search information from google for my needed
products
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 105 63.8 63.8 86.7
Neutral 16 9.5 9.5 96.2
Disagree 5 2.9 2.9 99
Strongly Disagree 2 1 1 100
Total 165 100 100
0
10
20
30
40
50
60
I can order as many products as per my requirement

39
Figure 18 Responses if respondents search information from google for my needed
products
Among all the respondents most of them agreed with the statement that I search
information from google for my needed products by 64% which is followed by
strongly agree with 23% and 16 of them are neutral. 5 respondents disagreed and 2 of
them strongly disagreed. As maximum of the respondents are totally agreeing the fact
so this can be concluded as customer search information from google for their needed
products.
4.3.3.5 Online business provide 24/7 service
Table 18 Responses if Online business provide 24/7 service
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 50 30.5 30.5 41
Neutral 13 7.6 7.6 48.6
Disagree 49 29.5 29.5 78.1
Strongly
Disagree
36 21.9 21.9 100
Total 165 100 100
0
20
40
60
80
100
120
Chart Title

40
Figure 19 Responses if Online business provide 24/7 service
Out of 165 respondents most of them agree with the statement online business provide
24/7 service by 31% which is followed by disagree with 30% and strongly disagree
with 22%. 13 respondents were neutral and 17 of them strongly agreed. This can be
concluded as online business provide 24/7 service.
4.3.4 Convenience and Delivery
4.3.4.1 My order is delivered on time
Table 19 Responses if respondent's order is delivered on time
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 50 30.5 30.5 32.4
Neutral 53 32.4 32.4 64.8
Disagree 52 31.4 31.4 96.2
Total 165 100 100
0
10
20
30
40
50
60
Online business provide 24/7 service

41
Figure 20 Responses if respondent's order is delivered on time
Among all the respondents most of them were neutral with the statement my order is
delivered on time by 32% which is followed by disagree with 32% and agree with
31%. 6 respondents strongly disagreed and 3 of them strongly agreed. This appears to
be 50-50 that customer’s order is delivered on time.
4.3.4.2 Online business supply outdated products
Table 20 Responses if Online business supply outdated products
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 74 44.8 44.8 47.6
Neutral 39 23.8 23.8 71.4
Disagree 41 24.8 24.8 96.2
Strongly
Disagree
6 3.8 3.8 100
Total 165 100 100
0
10
20
30
40
50
60
My order is delivered on time

42
Figure 21 Responses if Online business supply outdated products
Out of 165 respondents most of them agree with the statement that online business
supply outdated products by 45% which is followed by disagree with 25% and 24%
were neutral about this. 6 respondents strongly disagreed and 5 of them strongly
agreed. As maximum of the respondents are totally agreeing the fact that online
business supply outdated products there are few respondents those disagree with the
statement.
4.3.4.3 All the demanded products are delivered at once
Table 21 Responses if All the demanded products are delivered at once
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 101 61 61 66.7
Neutral 38 22.9 22.9 89.5
Disagree 16 9.5 9.5 99
Total 165 100 100
0
10
20
30
40
50
60
70
80
Online business supply outdated products

43
Figure 22 Responses if All the demanded products are delivered at once
Among all the respondents most of them agreed with the statement all the demanded
products are delivered at once by 61% which is followed by neutral responses with
23% and disagree with 10%. 9 respondents strongly agreed and 2 of them strongly
disagreed. Hence, most of the online business delivers all the demanded products at
once.
4.3.4.4 Online business provides products on our timeframe
Table 22 Responses if Online business provides products on our timeframe
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 42 25.7 25.7 30.5
Neutral 46 27.6 27.6 58.1
Disagree 61 37.1 37.1 95.2
Total 165 100 100
0
20
40
60
80
100
120
All the demanded products are delivered at once

44
Figure 23 Responses if Online business provides products on our timeframe
Out of 165 respondents most of them disagreed with the statement that online
business provides products on customer’s timeframe by 37% which is followed by
neutral responses with 28% and agree with 26%. 8 respondents strongly disagreed and
8 of them strongly agreed. As maximum of the respondents are totally disagreeing the
fact that online business provides products on customer’s timeframe there are few
respondents those agree with the statement.
4.3.4.5 Delivery options that I prefer is Doorstep
Table 23 Responses if Delivery options that respondent prefer is Doorstep
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 53 32.4 32.4 35.2
Neutral 46 27.6 27.6 62.9
Disagree 52 31.4 31.4 94.3
Strongly
Disagree
9 5.7 5.7 100
Total 165 100 100
0
10
20
30
40
50
60
70
Online business provides products on our timeframe

45
Figure 24 Responses if Delivery options that respondent prefer is Doorstep
Among all the respondents most of them agree with the statement I only shop online
via social media by 32% which is followed by disagree with 31% and neutral with
28%. 5 respondents strongly agreed and 9 of them strongly disagreed. This seems to
be 50-50 that customer’s prefer doorstep delivery options.
4.4 Dependent Variable
4.4.1 Customer Behavior
4.4.1.1 Customers prefer quality products in cheaper price
Table 24 Responses if Customers prefer quality products in cheaper price
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Agree
69 41.9 41.9 41.9
Agree 86 52.4 52.4 94.3
Neutral 8 4.8 4.8 99
Strongly
Disagree
2 1 1 100
Total 165 100 100
0
10
20
30
40
50
60
Delivery options that I prefer is Doorstep

46
Figure 25 Responses if Customers prefer quality products in cheaper price
Among all the respondents most of them agreed with the statement that customers
prefer quality products in cheaper price by 53% which is followed by strongly agree
with 42%. 8 respondents were neutral and 2 of them strongly disagreed. And hence, it
can be concluded that customers prefer quality products in cheaper price.
4.4.1.2 Customer loves online buying instead of visiting stores
Table 25 Responses if Customer loves online buying instead of visiting stores
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Agree
57 34.3 34.3 34.3
Agree 102 61.9 61.9 96.2
Neutral 6 3.8 3.8 100
Total 165 100 100
0
10
20
30
40
50
60
70
80
90
100
Strongly Agree Agree Neutral Strongly Disagree
Customers prefer quality products in cheaper price

47
Figure 26 Responses if Customer loves online buying instead of visiting stores
Out of 165 respondents most of them agreed with the statement that customer loves
online shopping instead of visiting stores by 62% which is followed by strongly agree
with 34%. 6 respondents were neutral and none of them disagree or strongly
disagreed. There is totally positive impact on customer behavior for online buying.
4.4.1.3 Customers find the required items in few steps of searching
Table 26 Responses if Customers find the required items in few steps of searching
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Agree 105 63.8 63.8 79
Neutral 22 13.3 13.3 92.4
Disagree 11 6.7 6.7 99
Total 165 100 100
0
20
40
60
80
100
120
Strongly Agree Agree Neutral
Customer loves online buying instead of visiting stores

48
Figure 27 Responses if Customers find the required items in few steps of searching
Among all the respondents most of them agree with the statement customers find the
required items in few steps of searching by 64% which is followed by strongly agree
with 15%. 22 respondents were neutral, 11 of them disagreed and 2 of them strongly
disagreed. Hence, customers are able to find the required items in few steps of
searching.
4.4.1.4 Customers are happy with delivery service of online businesses
Table 27 Responses if Customers are happy with delivery service of online businesses
Frequency Percent Valid Percent
Cumulative
Percent
Valid
Agree 97 59 59 94.3
Neutral 5 2.9 2.9 97.1
Disagree 3 1.9 1.9 99
Strongly
Disagree
2 1 1 100
Total 165 100 100
0
20
40
60
80
100
120
Customers find the required items in few steps of searching

49
Figure 28 Responses if Customers are happy with delivery service of online
businesses
Among all the respondents most of them agree with the statement that customers are
happy with delivery service of online businesses by 59% which is followed by
strongly agree with 35%. 5 respondents were neutral, 3 of them disagree and 17 of
them strongly disagreed. As maximum of the respondents are totally agreeing the fact
that they are happy with delivery service of online business there are few respondents
those disagree with the statement.
4.4.1.5 Customers can easily exchange or return products
Table 28 Responses if Customers can’t easily exchange or return products
Frequency Percent Valid Percent
Cumulative
Percent
Valid
Strongly Agree 66 40 40 40
Agree 80 48.6 48.6 88.6
Neutral 13 7.6 7.6 96.2
Disagree 3 1.9 1.9 98.1
Strongly
Disagree
3 1.9 1.9 100
Total 165 100 100
0
20
40
60
80
100
120
Customers are happy with delivery service of online businesses

50
Figure 29 Responses if Customers can’t easily exchange or return products
Out of 165 respondents most of them agree with the statement I only shop online via
social media by 48% which is followed by strongly agree with 22% and disagree with
12%. 13 respondents were neutral and 17 of them strongly disagreed. As maximum of
the respondents are totally agreeing the fact that customers can’t easily exchange or
return products there are few respondents those disagree with the statement.
4.5 Correlation Analysis
Table 29 Correlation Table
Econom
ic Factor Trust
Availabi
lity
Convenien
ce &
Delivery
Customer
Shopping
Behavior
Economic
Factor
Pearson
Correlation
1 .806**
.773**
.715**
.801**
Sig. (2-tailed) .000 .000 .000 .000
N 165 165 165 165 165
Trust Pearson
Correlation
.806**
1 .744**
.540**
.491**
Sig. (2-tailed) .000 .000 .000 .000
N 165 165 165 165 165
Availabilit
y
Pearson
Correlation
.773**
.744**
1 .436**
.533**
0
10
20
30
40
50
60
70
80
90
Customers can't easily exchange or return products

51
Sig. (2-tailed) .000 .000 .000 .000
N 165 165 165 165 165
Convenien
ce &
Delivery
Pearson
Correlation
.715**
.540**
.436**
1 .744**
Sig. (2-tailed) .000 .000 .000 .000
N 165 165 165 165 165
Customer
Shopping
Behavior
Pearson
Correlation
.801**
.491**
.533**
.744**
1
Sig. (2-tailed) .000 .000 .000 .000
N 165 165 165 165 165
From the above correlation table, it can be concluded that economic and convenience
& delivery are the main two factors to influence customer behavior for buying this
online which is slightly impacted by availability and trust.
The correlations table displays Pearson correlation coefficients, significance values,
and the number of cases with non-missing values (N). The values of the correlation
coefficient range from -1 to 1. The sign of the correlation coefficient indicates the
direction of the relationship (positive or negative). The absolute value of the
correlation coefficient indicates the strength, with larger absolute values indicating
stronger relationships. The correlation coefficients on the main diagonal are always 1,
because each variable has a perfect positive linear relationship with itself. The
significance of each correlation coefficient is also displayed in the correlation table.
From the table 11 it can be summarized that there is a positive relationship between
sales promotion (X) and purchase decision (y).
4.6 Regression Analysis
The general purpose of multiple regressions is to learn more about the relationship
between several independent variables and a dependent variable. Regression analysis
is a statistical process for estimating the relationships among variables in statistical
modeling. A correlation analysis can only tell whether or not a strong relationship
exists between two variables. But even if a correlation coefficient indicates that a
strong relationship exists between two variables, the exact shape of the relationship

52
between the two variables cannot be determined. In this case, regression analysis
provides more information about the slope of the relationship. It is used to describe
the nature of a relationship and to make predictions.
In this study, the dependent variable is Employee job satisfaction and independent
variables are
1. Compensation and benefit
2. Work place condition and environment
3. Promotion and career development opportunities
4. Job security and commitment to job
5. Relation with co-worker and management.
The line of regression is Y= A+BX
Multiple Regression Model
Ŷ= α + β1X1+ β2X2+ β3X3 + β4X4 + β5X5 + ei.
Where,
Ŷ = Employee job satisfaction (Dependent variable),
X1 = Compensation and benefit
X2 = Work place condition and environment,
X3 = Promotion and career development opportunities
X4 = Job security and commitment to job,
X5 =Relation with co-worker and management, α = Constant
βi = Coefficient of slope of regression model, ei = Error term
where, A is constant and B is regression coefficient. A measure of change Y per unit
change in X. If 1 unit increase in Compensation and benefit the Employees job
satisfaction will also increased.
Table below indicates the findings of regression analysis between four independent
variables and EJS.
Regression Analysis (Model Summary)
Table 30 Regression analysis - Model Summary
Model R R. Square Adjusted R Square Std. Error of the Estimate
1 .638a
.407 .383 .05757
Where a. Predictors: (Constant) (1) Economic Factor (2) Trust (3) Availability
(4) Convenience and Delivery.

53
Model summary indicates the R- square also known as coefficient of determination
which can help in explaining variance. The value of R-square value as evident from
Table 30 is 0.407 which means 40% variation in Consumer Behavior by (1) Economic
Factor (2) Trust (3) Availability (4) Convenience and Delivery. However, the
remaining 60% (100% -40%) is still unexplained in this research. In other words,
there are other additional variables that are important in explaining Consumer
behavior, that have not been considered in this research.
Similarly, adjusted R-square is 0.383 which means 38% variation in Consumer’s
behavior of Nepal is explained by (1) Economic Factor (2) Trust (3) Availability (4)
Convenience and Delivery after adjusting degree of freedom (df). This shows
moderate relationship between all independent variables and dependent variable
consumer’s behavior in cooperatives of Nepal. Model summary also indicates the
standard error of the estimate of 0.0576 which shows the variability of the observed
value of factors influencing consumer’s online buying behavior of Nepal from
regression line is 0.0576 units.
4.6.1 Significance Test Results
ANOVA stands for Analysis of Variance, and the ANOVA table contains the F-test
results. This F-test result is the most important aspect in simultaneous test. Ghazali,
2012 mentioned that the simultaneous test (Test-F basically indicates whether all
independent variables included in the model have the influence on the dependent
variable or not.
Table 31 ANOVA Test
SN Model Sum of
Squared
Df Mean
Square
F Sig.
1 Regression .227 3 .065 18.253 .000b
2 Residual .331 101 .004
3 Total .559 104
1. Dependent Variable: Customer Shopping Behavior
2. Predictors: (Constant),
a. Compensation and benefit
b. Work place condition and environment
c. Promotion and career development opportunities

54
d. Job security and commitment to job
e. Relation with co-worker and management.
Based on ANOVA, the p-value is 0.000 which is lesser than alpha value 0.01 or 0.05.
Therefore, the model is a good predictor of the relationship between the dependent
and independent variables. As a result, the independent variables (1) Economic Factor
(2) Trust (3) Availability (4) Convenience and Delivery are significant in explaining
the variance in consumers’ behavior on online buying of Nepal.
4.6.2 Partial Test Results
In the partial test results, if the p-value result is lesser than 0.05, then the hypothesis
(H2) is accepted, means that there is a significant influence occurred from variable X
towards Y, partially.
Hypothesis Findings
Hypothesis 1: Economic Factor particulars will have a positive
effect on attitude toward online buying.
Accepted
Hypothesis 2: Trust of getting ordered product of good quality
will have positive effect on attitude toward online buying
behavior
Accepted
Hypothesis 3: The availability of product risk will have positive
results towards online buying behavior.
Accepted
Hypothesis 4: Convenience toward user friendly online buying
and good service of delivery of order will have positive attitude
towards buying online.
Accepted
Hypothesis 5: Product return policy will have encouraging
effect on attitude towards buying online.
Accepted
4.6.3 Coefficient of Determination Test Results
In regression, the R-square coefficient of determination is a statistical measure of how
well the regression line approximates the real data points. An R-square coefficient of
determination of 100 percent indicates that the regression line perfectly fits the data.
Table 32 Coefficient of determination of test results
Model Un-standardized
Coefficients
Standardized
Coefficients
T Sig.

55
B Std. Error Beta
(Constant) 1.894 .291 6.503 .000
E. Factor .176 .119 .266 6.477 .000
Trust -.499 .075 -.912 -6.637 .000
Availability .027 .145 .025 8.190 .000
Convenience
& Delivery
.253 .083 .348 5.047 .000
Dependent Variable: Consumers’ behavior on online buying
Taking four dimensions of Consumers’ behavior on online buying including
Economic Factor , Trust, Availability, Convenience and Delivery as independent
variable (X1, X2, X3, X4, and X5) and Consumer Behavior as the dependent variable,
the model is constructed with equation as below:
Ŷ= α + β1X1+ β2X2+ β3X3 + β4X4 + β5X5 + ei.
Based on the coefficients, the regression equation for the employee job satisfaction
can be written as:
Ŷ = -0.79+0.27 X1+0.18 X2+0.17 X3+0.31 X4+0.27 X5.
Regression coefficients of Economic Factor, Trust, Availability, Convenience and
Delivery are 0.176, 0.499, 0.27and 0.253 respectively in Consumer’s behavior.
The table 32 also shows that all independent variables such as Economic Factor,
Trust, Availability, Convenience and Delivery have significant results since their
respective p-values are less than level of significant (p < 0.01) or (p<0.05).
This illustrates that increase in 1 unit in Consumer behavior leads to increase in
Economic Factor, Trust, Availability, Convenience and Delivery 0.176, 0.499,
0.27and 0.253 respectively.
The correlation coefficient shows that there is significant correlation between all four
dimensions of consumers’ behavior on online buying of Nepal. And also the results of
multiple regressions analysis show significant relationship of all four dimensions of in
consumers’ behavior on online buying of Nepal. i.e. Consumer behavior leads to
increase in Economic Factor, Trust, Availability, and Convenience & Delivery.

56
CHAPTER IV
SUMMARY, FINDINGS AND CONCLUSION
The main purpose of this study was to investigate the underlying factors that
determine the online buying behavior of consumers of Nepal and consumers and
influence of pricing, convenience, technology or media, availability, return policy,
trust and delivery during their purchase behavior. Consumers were researched
believing that they are potential online buyers in Nepalese market. The aim was to
examine the online purchasing behavior of consumers living in Nepal.
5.1 Summary
From the above data analysis, it can be concluded that trust and economic are the
main two factors to influence customer behavior for buying this online which is
slightly impacted by availability and convenience and delivery options.
5.2 Findings
Economic factors, trust, availability, convenience and delivery all impact on customer
behavior during buying items online are positive. It might be less or more positively
impactful to the customers but none of them seems to have negative impact towards
customer behavior on online buying.
5.3 Conclusion
The research was carried out to evaluate the impact of economic, trust,
availability, convenience and delivery on consumer’s online buying behavior.
The questionnaires were prepared in such a manner that it incorporates all the
objectives of the research. The research was carried out successfully despite the
limitation of time. The customers were chosen from different sectors and in
particular territory, so the findings may be limited for appropriate generalization.
5.4 Implications for further research
Online business in Nepal is constantly evolving which means new consumers and
sellers are emerging. Therefore, future research can be conducted with a larger sample
which can bring more accuracy in data analysis. In addition, it would be advantageous
to research the impact of gender, employment and others in relation to online
purchasing behavior. It could be interesting to examine how decision making and
influencing factors are differed among different items. Moreover, in the context of

57
Nepal, there has not been much research conducted in this area. Hence, more in-depth
study should be conducted related to this topic. Furthermore, in this research,
consumer’s online buying behavior were examined at only one point in a time.
However, consumer’s attitudes and behaviors can be explored in detail with a
longitudinal study. This would aid to formulate a more complete conceptualization of
attitudes and influencing factors of online buying consumers thus, helps to achieve a
more in-depth research.
5.5 Recommendations
I believe this study will provide some significant knowledge and information to the
online sellers to uncover consumers’ preferences and anticipate consumer online
buying behavior. Online sellers that are interested to establish their market or those
who have already set the market but are planning to expand their business in Nepal
should focus on their delivery and return services with reasonable pricing and quality
promising according to images shown. Online business person should come up with
various strategies to trigger word-of-mouth as this will help them reach wider
audience. Not only this, new comers will be equally beneficial with this study to
launch their business in the market targeting the number of consumers willing to
purchase online. Entrepreneurs, investors and planners who are involving in the
online business will be equally benefitted by this research paper. Along with that new
consumer who wants to try the buying things online can get the view how the market
is going on and get knowledge about the services provided by online businesses.

58
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APPENDIX QUESTIONNAIRE
1. Which age range do you belong?
a. Below 20
b. 21- 30
c. 31 - 40

61
d. Above 40
2. Your Education Level
a. Intermediate and below
b. Bachelor degree
c. Master degree
3. Your Income Level Range
a. Below 50000
b. 50000 – 100000
c. Above 100000
4. Economic Factors’ influence on customer behavior
Questions
Strongly
Agree
Agree Neutral Disagree
Strongly
disagree
Online representative is
flexible with pricing
Pricing of online product is
affordable
I can negotiate with
representative of online
business
Online business provides its
products with discounts
Offers (buy one get one
free) are being provided in
festivals
5. Trust’s influence on customer behavior
Questions
Strongly
Agree
Strongly
disagree
I got what I order

62
I trust purchasing from
online business
Online business provides
service what they promised
Online products are of
good quality
We receive defective
products from online
6. Availability’s influence on customer behavior
Questions
Strongly
Agree
Strongly
disagree
I can easily find the product
I am looking for
I only buy online via social
media
I can order as many
products as per my
requirement
I search information from
Google for my needed
products
Online business provide
24/7 service
7. Convenience and Delivery’s influence on customer behavior
Questions
Strongly
Agree
Strongly
disagree
My order is delivered on
time

63
Online business supply
outdated products
All the demanded products
are delivered at once
Online business provides
products on our timeframe
Delivery options that I
prefer is Doorstep
8. Customer Behavior on economic, trust, availability and convenience
delivery
Questions
Strongly
Agree
Strongly
disagree
Customers prefer quality
products in cheaper price
Customer loves online
shopping instead of visiting
stores
Customers find the required
items in few steps of
searching
Customers are happy with
delivery service of online
businesses
Customers can easily
exchange or return products

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