FACTORS INFLUENCING IMPULSE ONLINE BUYING

BEHAVIOR AMONG YOUTHS

Undergraduate Applied Business Research Project Proposal

Submitted to:

Kathmandu University

Little Angels’ College of Management

in Partial Fulfillment of the Requirement of

Bachelor of Business Information System

By:

Rojina Shrestha

K. U. Registration No: A022726-16

Under the Supervision of

Mr. Bibhav Adhikari

Faculty, LACM

December, 2019
TABLE OF CONTENT

Contents

CHAPTER I:

INTRODUCTION

1.1. General Background 1

1.2. Statement of the Problem 1

1.3. Research questions 1

1.4. Objectives of Study 2

1.5. The hypothesis of Study 2

1.6. Significance of Study 2

1.7. Delimitation of Study 2

1.8. Organization of Study

3

CHAPTER II: 

REVIEW OF THE LITERATURE

2.1. Literature Review 4

2.2. Theoretical/Conceptual/Operational Framework

11

2.3. Research Gap

 13

CHAPTER III: 

RESEARCH METHODOLOGY

3.1. Research Design:

14

Primary Survey Questionnaire Design 

3.2. A sampling of Research Area 14

Size of Sample and technique: Sampling Methods, Statistical Tools

3.3. Data Collection Procedure

15

3.4. Data Analyses Methods 15

3.5. Reliability and Validity

16

3.6. Ethical Considerations

16

CHAPTER IV:

EXPECTED OUTCOME

4.1. Expected Outcome 17

References 18
List of Figures

1.1. Conceptual Framework

15

1.2. Research design 12

1.3. Research Budget 21

1.4. Gantt chart presentation of the study schedule

22
 CHAPTER I

INTRODUCTION

1.1. Background of the study

“Customer is King" (Parmer, 2018). It is an age-old business mantra accentuating the

importance of customers and would be customers in every business. To understand the
behavior of the consumer is an important and difficult task in business activity. Consumer
behaviour is described as the actions consumers reveal while investigating, buying,
consuming, assessing and disposing of products and services that are expected to fulfil the
consumer’s requirements. The Internet is changing the way consumers shop and buy goods
and services and has rapidly evolved into a global phenomenon. Online shopping is the
process of buying goods and services from merchants who sell on the internet. Shoppers visit
web stores from the comfort of their homes and shop as they sit in front of the computer.
Consumer behavior towards online shopping is a field of interest for both scholars and
professionals because the internet has greatly influenced the preferences and buying patterns
of customers (Gopal, 2016).

The continued growth of B2C and e-commerce has led to a number of research studies, it
aim to understand how traditional offline consumer behavior manifests in an e-commerce
domain including establishing trust (Gefen et al., 2003). Experiencing the convenience of
avoiding travelling to shop and the time saved in bargain hunting are adding advantages and
craze for online shopping. The facility of comparing your product with competitive products
based on price, color, size, and quality is one of the biggest benefits of online shopping
(Goyal, 2015). There is a huge online market in Nepal as computer and internet is becoming
an inevitable part of our life. With the growing acceptance of the Internet, retailers establish
multi-channels to sell their products, nowadays. One of them is online retailing. The website
quality and sales promotion affect online impulse buying behavior (Akram et al., 2018).
Generally speaking, impulse buying has been studied from two key perspectives: the state of
mind created by the shopping environment (Rook, 1987) or a specific personality trait
2
inherent to the individual consumer (Rook and Fisher, 1995). Impulse buying is defined as a
sudden, unexpected desire to buy a product that was not considered before going on the
shopping trip. Impulse buying behaviour is defined as the shopper’s persona, which
describes an individual rather than the atmosphere in the stores. Online social interaction
factors, including review quality, source credibility, and observational learning demonstrate
important impacts on perceived usefulness and positive affect. Positive affect further
influences the urge to buy impulsively (Zhang et al., 2014).

1.2. Statement of the Problem

Adnan (2014) stated that approximately 82% of consumers does not use poorly structured
web store. On account of this reason, the consumer leaves the e-retail store without
completing the purchase or transaction. Yörük et al. (2011) recommended that online
retailers should design their website more conveniently, safely, and reliably to convert online
visitors to online shoppers. Globally, research on impulse online buying behaviour of youths
has been scarce due to researchers concentrating only on the everyday consumer. Khan et al.
concur, stating that limited studies have been conducted on impulse buying behaviour
amongst Generation Y members. Furthermore, there is a scarcity of studies available on the
factors influencing members of this cohort’s impulsive online buying behaviour. Studies that
were conducted in South Africa on the topic of impulse buying behaviour by other
researchers, have concentrated only on certain aspects of impulse buying behaviour, in
comparison to this particular topic. Hamilton (2010) focuses on how culture influences
impulse buying behaviour and Retief (2012) highlights how pop-up stores influence impulse
buying behaviour. Although significant progress has been made in recent years in the field of
consumer behaviour, there remains a gap regarding factors that influence impulse online
buying behaviour amongst youths in Nepal. This investigation intends to contribute to filling
this void.

1.3. Research Questions

The research question of the study will be:

1. Which factor do most affect impulse online shopping among the youths?
3
2. What is the social-demographic profile of respondents?

3. How frequently Nepalese people shopping online?

1.4. Objectives of the Study

The general objective of the study will be to identify the factors which affects increasing
impulse buying behavior among youths.

The specific objective of the study will be:

 To examine the social-demographic profile of respondents.

 To analyze Nepalese people’s online shopping behavior.

1.5. The hypothesis of the Study

 H1ɑ: There is factors that do not have a significant influence on youths’ cognitive
response.

 H1β: There is factors that do have a significant influence on youths’ cognitive response.

 H1ɑ: There is no significant difference between male and female youths in their impulse
online buying behavior.

 H1β: There is a significant difference between male and female youths in their impulse
online buying behavior.

1.6. Significance of the Study

The study will be conducted to find out which factors affect impulse online buying behavior
among youths and it will be significant for e-commerce marketers as by the results of this
study they can increase their sales and enhance their revenues. It will be a theoretical
4
contribution. Through the results of researchers can make improvements and increase their
profits. This study will show the impact of all variables on impulse online buying and will
give ways how marketers and e-commerce entrepreneurs can expand their business. It will
also help in future research.

1.7. Delimitation of the Study

Only 196 surveys will be conducted for my research. The study will be based on primary
data. Cluster sampling and stratified sampling will be considered for the research in
Kathmandu valley, it means there will be no specific area within the Bhaktapur, Lalitpur and
Kathmandu. Data collection will be mainly based on questionnaire and quantitative research
only. And the data collect from the secondary sources like internet, newspaper, books may
lack some proper explanation or maybe not correctly interpreted.

1.8. Organization of the Study

The study will be organized into four chapters. The first chapter will cover the introductory
chapter which provides information on the problem and objectives of the study, the
formation of hypotheses, significance, and limitations of the study. The second chapter
highlights the review of empirical literature focusing on the impulse online buying behavior
among youths. The third chapter will focuses on the research methodology. The fourth
chapter will focus on the results of the study and their interpretations will be presented. The
fifth chapter will summarize the findings of the study and also will offer recommendations.

CHAPTER II:

REVIEW OF THE LITERATURE

2.1. Literature review

J.A. Neves(2016) submitted a research report about “Factors influencing impulse buying
5
behaviour amongst Generation Y students”. The primary objective of this study was to
determine the factors that influence the impulse buying behaviour of South African
Generation Y students in order to guide the formation of marketing strategies for effectively
targeting this market. The study comprises a literature review and an empirical study.
Quantitative research, using the survey method, was used for the empirical portion of the
study. A descriptive research design with a single cross-sectional sample was followed. The
statistical package for social sciences (SPSS), version 23.0 was employed to examine the
captured data. The following statistical techniques were utilized: factor analysis, reliability
and validity analysis, descriptive statistical analysis, correlation analysis, significance tests,
Regression analysis, and two independent-samples t-test. The main findings obtained from
this study, in accordance with the empirical objectives of the study, are : External factors of
in-store atmosphere, in-store browsing, salespersons, promotions and reference groups’ that
influence Generation Y students’ cognitive response to buy on impulse, External factors of
in-store atmosphere, in-store browsing, salespersons, promotions and reference groups’ that
influence Generation Y students’ affective response to buy on impulse, Situational factors of
time availability and money availability that influence Generation Y students’ cognitive
response to buy on impulse, Situational factors of time availability and money availability
that influence Generation Y students’ affective response to buy on impulse, and Gender
differences concerning Generation Y students impulse buying behaviour etc. The main
contribution of this study is the identification of the factors that influence impulse buying
behaviour of Generation Y students in South Africa, which retailers could use to design
appropriate marketing strategies to increase revenue by targeting Generation Y students. The
study has found that in-store browsing, promotions and reference groups influencing the
affective response are the most influential factors that could trigger Generation Y students`
impulse buying behaviour. This study was the first of its kind conducted in South Africa,
which answers questions some retailers might be interested in knowing. Furthermore,
findings from this study contribute to the growing body of research on consumer shopping
behaviour literature by giving light to factors influencing impulse buying behaviour amongst
Generation Y students. This study may assist in helping marketers, retailers and research
academics gain a better understanding of the impulse buying behaviour phenomenon
amongst Generation Y students.

Hashim Shahzad (2015) submitted a research report about”Online Shopping Behavior”. The
main purpose of this study was to identify the external online factors which influence
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consumer’s behavior towards online shopping in Sweden’s context. Thereby, the study was
only identify five external online factors. Besides the identification of online factors, it was
also important to know how much effect of these factors on consumers’ online shopping
behavior.Two methods are used for data collection. Firstly, the primary data was collected
through well structured questionnaire and was adopted from prior studies. The design of
questionnaire consists of two parts. The first part of questionnaire was related to online
factors that influence consumer’s behavior during online shopping. The other part of the
questionnaire drawn upon the consumer’s demographic characteristics. This research paper
had examined the external online factors influence consumer’s online shopping behavior;
specifically the influence of five external online factors namely financial risk, product
performance risk, delivery risk, trust & security and website design. Therefore, this study
also focused on the demographic factors which influenced consumers’ behavior towards
online shopping like, age, income and education. The findings of this study has given the
clear picture to e-retailers and will help to formulate their online marketing strategies
according to the specific online risk factors involved in online shopping.this study showed
that website design and trust and security and product performance were the significant
external online factors of online shopping context. These online factors also validated the
prior studies and literature reviewed. On the other hand, delivery risk and financial risk had
not significant influence respondents’ attitude towards online shopping behavior, the reason
could be that Sweden has most advanced and technologically developed country, in which
the online market has very mature thus the respondents did not have any issues of product
delivery and financial losses over the internet.

Deepjyoti Choudhury & Abhijit Dey (2014) submitted a research report about “Online
Shopping Attitude among the Youth: A study on University Students”. The purpose of this
study was to find out the impact of five factors like internet literacy, gender, educational
qualification, website usability and online product price on online shopping on a specific
group of population i.e. the students. As such the objectives were: to understand if gender
and education had any impact on online shopping among the students, to understand whether
internet literacy had any impact on online purchase among the students, to understand if
product price quoted online had any impact on online shopping among the students, and to
understand whether website usability had any impact on online shopping among the students.
A survey was conducted with target population as the students of Assam University, Silchar
with a structured questionnaire. A total of 200 responses were collected. Convenience
7
sampling, which was one of the non probability sampling methods, had been used in this
research because of ease of accessibility of the sample. Statistical tools such as percentage
analysis and chi-square test for independence had been conducted to compute the findings.
Since majority of the respondents shop online, thus this fact could be beneficial for the
corporate sector looking for promoting their brands and doing business over the internet.
Majority of respondents shopped online but still the respondents think the reason of not
shopping online had due to inability to touch and saw the product physically while shopping.
It had been found that internet literacy had significant relationship on online purchase, thus
proper care should be taken to promote internet literacy so as to promote online shopping .
From the study it was found that online product price listing had significant impact on online
purchase. Thus if online shopping was to be promoted then online price listing should be less
compared to traditional market price listing. The online retailers needed to provide more
competitive price and variety of product to attract customers and encourage them to make
purchase decision. It has also been found that website usability had no significant impact on
online shopping, which means that ease of use of website had no impact on whosoever was
internet literate and who shopped online. Another finding was that there was no significant
relationship between online shopping and educational qualification which means that
qualification had no impact on online shopping where as online shopping had significant
relationship with gender. Hence e-shopping companies should be distinct in addressing the
needs of both male as well as female shoppers while promoting their brands or selling their
product in online environment.The study observed that online shopping was in satisfactory
level among the students of Assam University. Taking this as an example, if the e-shopping
companies tried to concentrate on above recommendations then it were surely be able to
increase the number of online shoppers as well as the frequency of online shopping among
the students who were the majority online purchaser.

Hooria Adnan (2014), an analysis of the “Factors Affecting Online Purchasing Behavior Of
Pakistani Consumers”.The invention of internet has changed the way businesses runs all over
the world. There had been a move towards online shopping because of different online
factors including convenience, ease of use, low cost, time saving, various online products
and brands, with fast delivery as compared to shopping physically. Like in all marketplaces,
also on the internet buyers and sellers came together to share products, services, and
information. Consumer could buy the products and services anytime from anywhere and
thereby passed over the limitations of time and Place. Two methods were used for data
8
collection. Firstly, the primary data was collected through well-structured questionnaire and
is adopted from prior studies.this research stated that approximately 82% of consumers does
not use poorly structured web store. On account of this reason, the consumer leaves the e-
retail store without completing the purchase or transaction. He found that financial
transactions on the internet are linked to various risk factors. Furthermore, He mentioned that
the customers perceive different risk factors before transferring money to online merchant.
These factors could be financial loss, security and privacy. He indicated that the product
delivery had a negative impact on consumer’s buying behavior. Furthermore, He suggested
that online merchants should provide insurance coverage to online buyers if an item was not
delivered to the consumer in time. The aimed to investigate the influence of different
dimensions of perceived risk, perceived advantages, psychological factors, hedonism
motivations, and website design on online shopping behavior. The study distributed 100
questionnaires to online buyers in Pakistan. The research found that perceived advantages
and psychological factors had a positive influence on the consumers’ intentions to shop
online while perceived risk had a negative impact on the consumers’ attitude toward online
shopping. Other factors like website design and hedonic motivations had not any significant
impact on the consumers’ intentions to shop online.

Vidha Pradhan (2016) conducted a research on “Study on Impulsive Buying Behavior

among Consumers in Supermarket in Kathmandu Valley ”. This research was attempt to
examine some of the factors affecting impulsive buying behavior of consumers in
supermarkets. It was also aims to verify the interrelationship between (Store atmosphere,
Point of purchase display, Payment facility and Promotional activity) factors and impulsive
buying behavior. A primary research was carried out among people who shop in
supermarkets in Kathmandu valley. A structured questionnaire was used to collect data from
respondents of sample size 200. The sample had taken by convenience and quota sampling
as per their age group. The findings suggested that majority of supermarket goers buy
impulsively. Whenever they visited a supermarket, most of the respondents did not plan
ahead. Instead, they scrolled through aisles/products and buy what they thought they need.
Most of the respondents purchased certain products like personal care items, grocery and
accessories impulsively. For other products like electronics and kitchenware, they took time
to think if they really required those products. Taking into consideration each factor, product
category had an insignificant role in influencing impulsive buying behavior. Similarly,
respondents who had financial independence also had an insignificant role in influencing
9
impulsive buying behavior. Among the factors that were significant for triggering impulsive
buying behavior had availability of cash, mood of consumer, POS terminal/ATM facility,
price, store layout, availability of time, product promotion, store environment and reference
group. However, the same factors coupled with certain demographic variables might or
might not have the same impact on impulsive buying behavior of the same consumers.

Anmol Rasheed, Rana Muhammad Shahid Yaqub, and Fahad Javaid Baig (2017) conducted
a research on “Factors Affecting Impulse Buying Behaviors in Shopping Malls: Evidence
from Bahawalpur Region, Pakistan”. This paper was an attempt to find out what factors
affect most on impulse buying behavior in Bahawalpur Division. Through this study impact
of variables was analyzed like Store Atmosphere, Point of Purchase Display, Promotional
Activity, and Payment Facility. This study was based on primary data collected from
Bahawalpur with the help of structured questionnaire. Data analysis had been done with the
help of SPSS software, correlation and regression analysis. This study was based on a
Quantitative research. By analyzing all the data it was found that if store atmosphere was
neat, point of purchase display was attractive, promotional activities were influencing and
payment facilities were provided then these was promoted more impulse buying. This study
funt that there were favorable in Bahawalpur division. Consumers were more used to
impulse buying when they saw any discount offers or free products. Income level had very
significant impact on consumer’s impulse buying behavior as if store was well decorated,
with colorful surroundings they were motivate individuals towards buying. As a matter of
fact results had found that consumers were becoming more demanding. If they saw things at
according to their choice to their likeability they were show high involvement but if they
didn’t find anything of their choice they show very low involvement towards shopping. So
this study conclude by saying to promote impulse buying everything must be according to
consumers choice. This study highly recommended to marketers and business units that they
should pay more attention to store atmosphere and point of purchase display. Others factors
were still very important if they do not focus on promotional activities, strategies it was lead
to failure in product. As well as payment facilities must be provided to the customers to
increase impulse buying. Another thing marketers and business units should focus on was
store environment, displays must be according to that territory culture if things were not
according to that people’s choice they were avoid to visit that stores. With all these store
owners, marketers should not take these things as sole responsible for impulse buying they
should also investigate other factors as well.
10

G. Muruganantham & Ravi Shankar Bhakat (2013) conducted a research on “A Review of

Impulse Buying Behavior”. The purpose of this paper were to provide a detailed account of
the impulse buying behavior by compiling the various research works literature in the field
of Retailing and Consumer Behavior. It gave a broad overview of the impulse buying
construct and the various behavior related aspects. The paper were useful for marketing
practitioners and researchers towards comprehensive understanding of the consumer’s
impulsiveness. This research suggested that Impulse buying had been a challenge for market
researchers due to its complex nature. It also suggested for keeping in mind the universal
nature of impulse buying, it could be capitalized by retailers to benefit their respective
businesses. The proper combination and synergistic effect of the various factors influencing
impulse buying could lead to more sales turnover hence benefiting the marketers and
retailers. After the content analysis of the literature, it was possible to clarify the Impulse
buying concept, its various dimensions, and its relationship with the consumer, and also to
present some research propositions for the development of the knowledge in the field of
consumer research. Based upon the changing trends of the market in the developing
economies it was possible to infer that impulse buying may turn into a growing area of
research and could be seen across the various forms of retailing.

Dr. Pawan Kumar (2017), conducted a research on “Online Shopping Behaviour among
Students with Special Reference to Ludhiana, Punjab, India ”. In this research online
shopping had emerged in India as a new trend of shopping and was quickly absorbed in their
routine life. Due to wide spread internet access by shoppers and e - commerce widely usage
by traders, online shopping was rapidly growing. Students had been the majority online
shoppers so this study found out the attitude of students towards online shopping. This paper
attempted to find out the impact of factors like easy payment, wide variety of products,
educational qualification on online shopping . The objective of the research was to
understand the online purchase pattern of youth in India and to study the factors those
contribute to online shopping. The study was undertaken among the students of Ludhiana.
The results of the study is that educational qualification of the respondents and factors
influencing online shopping are independent.The present research will use both primary and
secondary data. The primary data were collected through a structured questionnaire by
survey method that shall design keeping in mind various parameters. Secondary data were
collected through books, research papers, journal, articles, newspapers, websites and other
11
informative sources. This research clear from the study that students were those who mostly
go for online shopping. There were several factors such as quality of products, delivery time,
products checking on the spot, return policy etc. which customer look before online
shopping. So the online websites must looked after those factors to be successful and retain
the customers. Finding of the study was that online shopping has grown in positive manner
among students of Ludhiana and decision of demonetization would help the online websites
to attract more and more customers.

Damayanti Octavia (2014), conducted a research on “The Differences of Online and In-store
Impulse Buying Behavior using Stimulus and Response Model”. In this research, Impulse
buying could take place in the store and online. Online and in-store impulse buying had
differences in environmental stimulus. This paper was prepared with an exploratory
approach to give ideas and insights about the factors that stimulate impulse buying. The
purpose of this paper was to create a framework of impulse buying in-store and online, using
SOR models. This paper proposed framework that generates impulse buying in-store and
online. The first stage was to build the stimulus, there were five stimulus, namely:
Environment (place),Promotion, Payment, Product, availability. The second stage was
Organism, there were two attitudes, namely: the first, consisting of mood affective,
hedonism, self-esteem, donation, and second,cognitive consisting of financial, time
availability, product knowledge.

Mohammad Anisur Rahman, Md. Aminul Islam, Bushra Humyra Esha, Nahida Sultana and
Sujan Chakravorty (2018), conducted the research on “Consumer buying behavior towards
online shopping: An empirical study on Dhaka city, Bangladesh”. This study was undertaken
to understand the behavior of online shoppers through a self-constructed questionnaire of
160 respondents from Dhaka city. The survey revealed that consumers shop online to save
time, and for available varieties of products and services. Both male and female both had the
same type of behavior towards liking and disliking factors; they like home delivery facility
and dislike inability to touch and feel the product most. They acquired online shopping
information from websites especially from the social network and purchase apparels,
accessories mostly through cash on delivery method of payment. The most of the consumers
were concern about the security of the payment system, and their overall online shopping
satisfaction was mixed. This study provided a foundation for the future researchers in
studying the consumer behavior of Bangladeshi online shoppers. Further research were
12
possible by increasing sample size including a rural population that reflected the entire
scenario of consumer behavior of online shopping in Bangladesh. Researchers were also
look for factors that influence the online shopping behavior, customer satisfaction, and
loyalty. The findings of the paper also provided managers guideline about the attributes that
must be included in their products and service quality, mode of delivery channel, payment
gateway, security, trustworthiness, and pricing strategy. According to this research,
Managers should choose the social network for advertisement. As, until the online payment
systems through credit card are not that much available, managers must maintain the cash on
a delivery program to gain trust among the customers. To elevate the touch and feel concern,
managers could send alternative products to the customer to choose from options and pay
after they prefer one. If the managers consider these factors, they might have a competitive
advantage in the market.

Laura Aragoncillo & Carlos Orús (2017), conducted a research on “Impulse buying
behaviour: an online-offline comparative and the impact of social media”. This paper aimed
to explore the phenomenon of impulse buying in the fashion industry. The online and offline
channels were compared to determine which was perceived as leading to more impulsive
buying. As the result of the literature review, three research questions were proposed and
examined through an online self-administered survey with 212 valid responses. Results
showed that the offline channel was slightly more encouraging of impulse buying than the
online channel; factors that encourage online impulse buying explain this behaviour to a
greater extent than did discouraging factors; social networks could have a big impact on
impulse buying. Findings were limited by the sampling plan, the sample size and the
measurement of some of the variables; only one product type was analyzed. Further research
was needed to confirm that shipping-refund costs and delayed gratification (traditionally,
discouraging factors of online buying) encourage online impulse buying; clarify
contradictory results regarding the role of online privacy and convenience. This research
contributed the validation of a scale to measure the influence of social media on impulse
buying behaviour. Offline companies could trigger the buying impulse to a greater extent
than online retailers. Managers must carefully select social networks to encourage impulse
buying, Facebook and Instagram being the most influential; Twitter has the least impact.
This study compared the impulse buying phenomenon in both the physical store and the
internet.

13
Lim Pei Ling & Dr. Rashad Yazdanifard (2015), conducted a research on “What Internal and
External Factors Influence Impulsive Buying Behavior in online Shopping?”. In this study,
the author emphasized on internal factors (e.g., psychological approach) and external factors
(e.g., situational, product and website factors) in studying the impulsive buying behavior.
The external factors (e.g., website designs) and internal factors (e.g., affective states) which
caused impulsive purchase were interrelated in certain aspects and were hard to separate
individually. In conclusion of this study online impulsive buying behavior was important in
increasing profit to sellers and shopping experience to consumers. Psychological factors such
as personality traits, affective states, interest, product involvement, perception, normative
evaluation and other cognitive factors played crucial and direct roles in affecting impulsive
buying behavior. However, the external factors such as situational factors, product’s
characteristics and website’s characteristics could also contribute to the impulsive purchase
in online market. Therefore, both internal and external factors were the important causes for
online impulsive purchase.

2.2. Theoretical/Conceptual/Operational Framework

Independent variable Dependent variable

Social-Demography(Age,
Gender, Income, Education)

Price

Product Performance

Delivery service
Impulse online
Trust & Security buying behavior
among youths

Website Design

14
Social-Demography:

Women typically score higher on impulsive buying scales compared to men (Segal &
Podoshen 2013). There is positive relationship between impulsive consumption and
disposable income (Bashar et al., 2013). Among the age, the youths represent the wealthiest
group, as many members of this group are employed in either part-time or full-time jobs
(Yingjiao Xu 2007). Internal, personal-related factor like educational experience influences
the act of impulse buying behavior(G Muruganantham & RS Bhakat 2013). The company’s
management consider about the importance of demographic factors (gender, age, income,
and education) for changing of the impulsive behavior of consumers (Prof. Dr. Abdul
Ghafoor Awan & Nayyar Abbas 2015).

Price:

Price has operated as a major determinant of buyer choice (Kotler et al., 2013). Low pricing
observed in online stores acts as an influencer to shop from the online store. The quotes in
support of low price are: “Saves money”, “Cheaper pricing”, “Best price”, “Prices are low”,
and “Cheaper than retail shop” etc. (Vilashini Jadhav & Monika Khanna 2016). Com-pared
with percentage-off presentation, the findings indicate that presentation shown at the amount
of money leads to higher anticipated regret and consumer impulse buying intention (H.
Zhou & Z. Gu 2015).

Product Performance :

Product is related to the poor performance of a product or brand especially when the
performance of a product or brand does not meet the desired expectations. The consumer’s
skills to assess the product or brand are limited in the online site due to the non-availability
of physical inspection of a product including touching, brand colors, inaccurate information
of product features which increases the product performance risk (Yeniçeri & Akin 2013).
There is a negative effect of product performance when the consumer buys not standardized
products like clothing while there is a positive effect when the consumer shops standard
products like cell phones (Ji et al. 2012).
15

Delivery:

The product delivery had a positive effect if the consumer ordered the product from a
reliable online merchant, thus customers find ways to approach trustworthy online sellers to
reduce the product delivery risk. During purchasing from a reliable online merchant, the
consumer feels safe and secure from undesired product delivery problems (Hong 2015). The
ways of product delivery had a significant impact on consumer’s buying behavior.
Furthermore, He suggested that online merchants should provide insurance coverage to
online buyers if an item is not delivered to the consumer in time (Adnan 2014). Non-delivery
had negatively affected the online shopping behavior of Iranian consumers (Moshref et al.
2012).

Trust & Security :

Psychological factors like trust related to the extent of the protection a website provides and
keeps consumer’s personal information safe. Trust and security had an important and
positive effect on consumer’s attitudes in online shopping (Ariff et al. 2013). Trust and
security factors were the major obstacles for consumers not to shop online. They preferred to
go around markets to shop products through physical inspections especially Turkey’s
consumer are more socialized and enjoy to go to bazaars and spend hours in the shopping
malls (Yörük et al. 2011).

Website Design:

Website design had not any significant impact on the consumer’s intentions to shop online
(Adnan 2014). Website quality had a significant impact on online shopping and it should be
easy to use, convenient, time-saving, easy to load a web page, simple navigation. The
comfort of using a web page will increase the probability of revisiting an increase (Hassan &
Abdullah 2010). Osman, et al. (2010), they argued that 77% of respondents were willing to
buy through a good and high-quality website design while 76% of online consumers agreed
to buy through a safe and easy to use website design. On the other hand, they also found that
website design had two different segments which consumer perceived in website design that
was hygiene and motivation. Furthermore, they mentioned privacy and security, easy
navigation of the website, and complete information related to the hygiene segment. The
absence of hygiene leads to16dissatisfaction with consumers’ needs as compared to
enjoyment, quality, cognitive outcome, user empowerment, and e-retailer information that is
linked to the motivation segment in website design. These factors of motivation segment
increase the value of website design and satisfied consumer’s needs. In short, good and
appealing website design can be helpful for consumers to make their e-shopping easy and
smooth. On the other hand, low-quality website design could be a barrier for consumers not
to shop online.

2.3. Research Gap

In addition to impulse online buying behavior, social-demography and online factors( price,
product performance, delivery service, trust and security and website design) are important.
These factors also determine consumer’s attitude towards online shopping. This research will
be identify the effects of different online factors in Nepalese online shopping context.
Although these factors are well researched by previous researchers, the issue is that different
studies explored these online factors in different online shopping contexts and did not cover
all factors(social-demography, price, product performance, delivery service, trust and
security and website design etc.). Therefore, it will be needed to validate the findings of
previous researches in the field of factors affecting impulse online buying behavior among
youths in Nepal. This study will provide an in depth understanding of major impulse online
factors(social-demography, price, product performance, delivery service, trust and security
and website design etc.) in Nepalese online buying context.

17
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 CHAPTER III:

RESEARCH METHODOLOGY

3.1. Research Design

The research will be conducted using descriptive research design. It will focuses on
describing the factors or variables that affect the online shopping behavior among
youths. The research describes relevant factors from the view point of the youths
particularly the age between 16-40. The study is based on quantitative research and
survey will be conducted to collect primary data. Structured questionnaire will be
provided to the sample population for completing the survey. The research design is
presented in figure below:

3.2. A sampling of Research Area

The sample area is based on Kathmandu valley.

Size of Sample:

The size of the Sample will be 196 youths. The size of sample is calculated as follows:

Suppose, 70% of voters say yes to proportion Z, with a margin of error of +/- 5%.
19
Confidence level is 95% and s.d is 0.5.

Z-score will be 1.96.

Sample size = (Z-score)2*s.d*s.d*(1-s.d)/margin of error2

= (1.96)2*0.5*0.5*(1-0.5)/0.052

= 196

Sampling Methods:

For this study, the sampling technique that will be used cluster probability sampling
technique for data collection. Cluster and stratified sampling technique will be used while
conducting sample. 

Questionnaire technique:

The structured questionnaire will be designed for questionnaire technique.

Statistical Tools :

The captured data will be evaluated using the IBM Statistical Package for the Social
Sciences (SPSS), version 23.0. 

3.3. Data Collection Procedure

Descriptive statistics tools will be used including mean, median, mode, standard deviation,
chi-square, parametric and non-parametric statistical tools.

3.4. Data Analysis Methods 

The data analysis tool for this study will be a 1-5 point Likert scale (1=Strongly Disagree,
2=Disagree, 3=Neutral, 4=agree, 5=Strongly Agree). This data analysis tool will be used to
evaluate empirical data. The Likert scale is generally used for questionnaires and is mainly
20
used in quantitative research. The benefit of using a Likert scale tool is to create attention
among respondents. Another data analysis tool for this study will be a multiple choice
questions. In such type of research question, the first step is to find out reliability of the
respondents, I’ll use psychometric test of true score. It will help to minimize respondent-
bias. I will use SSPS for my analysis. Ill also use closed questions and rating questions for
my analysis. As mentioned before two methods will be used to distribute the questionnaire,
out of 196 questionnaires 96 will be received completed questionnaire through an online
survey and the rest of 100 complete questionnaires will be received through distributed by
hand to participants. The slight resulted distortion can be neglected as the respondents have
been asked personally to answer the questionnaire online. After gathering the raw data the
next step has been to input the raw data into the online survey software and get frequencies,
graphs, pie charts, and tables or I’ll use SPSS for data interpretation and analysis.

3.5. Reliability and Validity:

For testing the validity, the questionnaire will be submitted to the research supervisor for
correction and approval followed by a pretest. For establishing reliability, Cronbach’s Alpha
will be calculated. Cronbach’s alpha will give a simple way to measure whether or not our
score is reliable. Alpha-Cronobach based on standardized item will be presented in table.

3.6. Ethical Considerations:

The research study is conforming to the ethical standards of academic research. The required
permission will be obtained from the respondents involved. Ethical clearance will be
obtained from the Little Angels’ College of Management. The identities and interests of the
participants will be protected as well as guaranteed confidentiality of the information
provided by the participants. The participation will voluntary, assuring that no person or
institution will be forced to participate against his or her own will. In the online survey I will
first send them a letter of consent and only after their reply I’ll send them a questionnaire.

21
22
 CHAPTER IV:

EXPECTED OUTCOME

4.2. Expected Outcome

The main step of the research is to draw the results of empirical data. In this part, the results
of the study will be discussed in detail in terms of social-demography factors and online
factors (price visibility it means equal bargain and discount for all consumer, product
performance, delivery service, trust and security and website design). The results of the data
will be divided into two steps. In the first step, the results of demographic data will be
presented like age, gender, education, and income, hereby tables and graphs will be used to
present the demographic picture of the study's respondents. Similarly, in the second step, the
results of the survey will be described as the influence of consumers’ online shopping
behavior such as price, product
23 performance, delivery services, trust and security and
website design. The response will be evaluated for which factor will affect for online
impulse buying behavior.
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Baber, Ms. A., Rasheed, Ms. A., Sajjad, Mr. M. (2014). Factors Influencing Online
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Ling, L. P. & Yazdanifard, Dr. R. (2015).What Internal and External Factors Influence
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26

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Research Budget:

Particular NPR.

Printing  

Stationary  

Statistical Consultation  

Report Preparation & preparing Book  

TOTAL  

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Gantt chart presentation of the study schedule:

Activities Sept Nov Dec Jan Feb Mar Apr May June

Topic Selection            
& Topic Presentation

Proposal                

Survey                

Data analysis and                 

evaluation
Writing Draft Report                

Presentation                 

Submission of Final                 

Report

28