©Apeejay Journal of Management and Technology 58

Vol. 11, Number 2, July 2016, 58-73

A Review of Factors Affecting Online Buying Behavior

Prateek Kalia*
Dr.Navdeep Kaur**
Dr. Tejinderpal Singh***
Abstract
Since the onset of e-commerce, e-businesses have always been interested in knowing what propels their
customers. An extensive literature review has been cast around the said reason to identify factors affecting
online buying behavior. Twenty-six factors have been identified initially, out of which price; convenience;
security; information; enjoyment; access and tangibility/ sensation have been found to be most cited. These
factors have been further explored to examine their implications in managerial decision making. Managerial
implications have been discussed at the end. This review will help businesses and academicians to build basic
foundation while proposing a strategy or systematic study focusing on online buying behavior.

Keywords Online buying behavior, E-commerce, Online shopping

Introduction
Ever since commerce started, businesses have always tried to identify and understand factors
influencing consumer buying behavior. Therefore, consumer behavior is not a new
phenomenon. Marketers have used consumer behavior theories to attract and retain their
customers. Later, advent of internet and e-commerce led to the phenomenon called ―online
consumer behavior‖. It is expected that more than 2 billion individuals worldwide will
purchase goods and services from the web, up from 1.46 billion digital buyers in 2015
(Statista.com, 2016). Over last few years‘ different online consumer behavior models have
been developed to understand and predict the wide range of decisions that consumers make
based on the background of customer profile, online shop profile, and other intervening
factors. However, researchers have suggested that as compared to traditional consumer
behavior, online behaviors of consumers are subtlety different in nature because of unique
characteristics and interplay of technology, culture and differences in diffusion of e-
commerce (Chau et al., 2002). Therefore, this study undertakes extensive literature review to
identify factors affecting online buying behavior and offers foundational work to businesses
and academicians.

Literature Review
Seventy-four studies related to online consumer behavior under this literature review have
been sourced from well-known publishers and reputed conference proceedings. Research
published in past two decades (from 1997 to 2016) is sorted in four phases i.e. from 1997 to
2001, 2002 to 2006, 2007 to 2011 and 2012 to 2016. Themes emerging from these phases are
highlighted in Figure 1.

Phase I (From 1997-2000)

For developers of e-stores, Jarvenpaa and Todd (1997) suggested to offer discounts, focus on
products that have low delivery cost, benchmark the e-store against traditional retail stores
and catalog stores, emphasize brand name products and product quality, reduce shopping
effort by providing search techniques, respond promptly to questions, provide no-cost/no-
hassle return policy, provide rich product descriptions including images and words,
emphasize security measures and provide customer testimonial. Helander et al., (1997)

Prateek Kalia, Research Scholar, Department of Research Innovation & Consultancy, I.K Gujral Punjab
Technical University, Kapurthala, Email: rs.pkalia@ptu.ac.in
**Dr. Navdeep Kaur, Assistant Professor, Department of Business Administration, Guru Nanak Dev
Engineering College, Ludhiana, Email: nav271@gmail.com
***Dr. Tejinderpal Singh, Assistant Professor, University Business School, Panjab University, Chandigarh,
Email: tejinderubs@gmail.com
2016 Prateek Kalia, Navdeep Kaur and Tejinderpal Singh 59

suggested that many general principles for design of human-computer interfaces like,
simplicity, support, visibility, reversible action, feedback, accessibility and personalization
apply to the design of e-commerce environments also. Broniarczyk et al., (1998)
recommended grocery retailers to adopt ‗Efficient Assortment‖. Their results indicated that
retailers might be able to make substantive reductions in the number of items carried without
negatively affecting assortment perceptions and store choice, as long as only low-preference
items are eliminated and category space is held constant. Li et al., (1999) asked their
respondents to rate twelve channel attributes which were aligned under three heads:
communication utility (wide selection of goods, quantity of information, update of
information), distribution utility (pre-purchase inspection, security of payment methods,
prompt access to goods purchased, post-purchase service, and ease of exchange or return) and
accessibility utility (ease of information customization, degree of interactivity, convenience
of accessing, degree of effort in using). They found that frequent web buyers perceived the
web to be significantly higher in the three kinds of channel utilities than occasional web
buyers. Their findings also indicated that education, convenience orientation, experience
orientation, channel knowledge, perceived distribution utility and perceived accessibility are
robust predictors of online buying status (frequent online buyer, occasional online buyer, or
non-online buyer) of internet users. It was also observed that frequent and occasional web
buyers are indeed not much price-sensitive than non-web buyers as online price comparison
is time-consuming and may not be worth given the small differences in price between
different vendors. Further smart online retailers will try to differentiate their products or
services to make direct price-comparisons less important.

Bellman et al., (1999) observed that typical web consumers are time starved as they lead a
wired lifestyle. These web consumers shop online to save time. While designing online
shopping environments online retailers should make standard or repeat-purchase more
convenient (one-click-to-purchase approach), customize information for purchase decision
and should offer easy check out process (Lohse and Spiller, 1998). Keeney (1999) organized
and identified objectives related to internet commerce as means objectives or fundamental
objectives. Means objectives covered internet commerce: minimization of fraud, misuse of
credit card, misuse of personal information, personal travel; maximum access to information:
product information, accuracy of transaction, product variety, product availability, ease of
use; assurance of system security and reliable delivery: limit impulsive buying, enhance
comparison shopping, make better purchase choices and offer personal interaction.
Fundamental objectives comprised of minimization of time to receive product, time spent,
cost, environmental impact and maximization of customer satisfaction, product quality,
convenience, privacy, shopping enjoyment, safety. Taking advantage of low search costs,
internet buyers can compare similar products across different websites with a click of the
mouse. To encourage impulse purchases online retailers should equip their web sites with
easy online ordering mechanism and keep themselves available 24 hours a day (Phau and
Poon, 2000).

Bhatnagar et al., (2000) observed that risk outweighs the convenience in terms of the
perceptions of the consumers regarding Internet as a marketplace. Therefore, online retailers
should focus on reducing risk perception associated with the security of internet connections
and product. Elliot and Fowell (2000) recommended the retailers to understand that an online
customer's experience is not limited to selection of products and electronic payments, but it
includes the establishment and maintenance of the customer-retailer relationship, the delivery
of the product purchased and subsequent consumer-retailer communications. Helander and
Khalid (2000) suggested that e-store environment should be designed to support customer
60 Apeejay Journal of Management and Technology July

decisions: to enter the store, to navigate, to purchase, to pay, and to keep the merchandize.
Process must be pleasing, fun and with natural flow, because customer have different needs,
competence and motivation. They also found that while shopping online, consumer decision
is influenced far more by factors such as convenience, product availability and cost, rather
than security concern. Phau and Poon (2000) compared internet shopping among internet and
non-internet buyers and found that product and service type classification significantly
influences the consumer choice between a retail store and the internet shopping mall. They
observed that the products and services that have a low outlay are frequently purchased, have
intangible value proposition, and are relatively high on differentiation are more likely to be
purchased via internet. They mentioned that with context to Singapore, expensive goods like
automobiles, jewelry, and stereo systems are not ready for web selling because they involve
high monetary risk and also require more than visual inspection. Their findings were in
coherence with prior studies (Shim and Mahoney, 1991), where perceived risk tends to
impede the adoption of online shopping systems. In case of frequently purchased goods,
perceived risks would be very much reduced because consumer has considerable personal
experience and the internet may serve as an effective communication and transaction
medium. Peterson et al., (1997) also indicated that Internet-related marketing is more suitable
for intangible or service-related offerings. A consumer wishing to experience the
merchandise prior to purchase might use a traditional retail channel to experience the
merchandise and then revert to an internet-based channel when acquiring it (Phau and Poon,
2000). Based on research of online shopping, Wolfinbarger and Gilly (2001) identified and
discussed attributes that facilitate goal-oriented online shopping, which include accessibility/
convenience, selection, information availability and lack of unwanted sociality from retail
sales help or shopping partners such as spouses.

Figure 1: An Examination of the Determinants of Online Buying Behavior over Past Two Decades (1997-2016)

Information Enjoyment
Convenience Price
Price Security
Access Trust
Consumer service Perceived control

2002-2006 2012-2016

1997-2001 2007-2011

Convenience Online purchase risk

Security Information
Order accuracy Delivery
Purchasing process Convenience
Incentive/Discounts Enjoyment
Source: Authors‘ depiction based on literature review.

Phase II (From 2001-2005)

Kim and Lim (2001) suggested that if consumers consider the information quality as an
important factor, their probability of purchase through the internet will be high. Consumers
who want more width and depth of up-to-date information perceive internet as transaction-
oriented medium rather than an entertainment-based medium (Randall, 1997). Further online
retailers should improve in terms of reliability (consumer privacy, payment and delivery),
convenience and prepare a system for compensating consumers in case of possible problems
2016 Prateek Kalia, Navdeep Kaur and Tejinderpal Singh 61

with reliability. Liao and Cheung (2001) analyzed consumer attitudes towards internet-based
e-shopping and found that life content of products, transactions security, price, vendor
quality, IT education and internet usage significantly affect the initial willingness of
Singaporeans to e-shop on the internet. They suggested that B2C e-commerce can be
profitably introduced or promoted along similar dimensions in socio-geographically and
technologically similar situations. Raijas and Tuunainen (2001) found that typical customers
in an electronic grocery store (EGS) in Finland are wealthy dual-career families with small
children, who live around large cities, who want to save their time and effort. They compared
users and the non-users of EGSs and found that consumers prefer an electronic channel over
a traditional one because of lower price-level, better service and information. Vrechopoulos
et al., (2001) suggested virtual retailers to offer personalized shopping environments
according to their customers' specific needs and wishes because provision of a one-to-one
instead of a one-to-many shopping experience constitutes a critical success factor.

Another important factor is provision of alternative payment methods. Internet shoppers

prefer "cash on delivery" payment method (for security reasons or non-availability of a credit
card). Three very crucial elements that every virtual store's management should consider and
offer to its customers are product information, price comparison among alternative products
and quick access to the store's web site. Their study revealed that prices at virtual retail store
must be lower than those at the physical stores, as both current and future internet shoppers
would not buy from a virtual store in case prices were higher, regardless of the free delivery
service offered to them. Results of Quester and Chong (2001) show that the potential
adopters are more likely to perceive that the price of product on the internet are lower than
that in the retail store. This is good opportunity for marketers to offer some discount to attract
them to try online shopping services. But relying too much on price cuts can cause profit
shrinking or even loss. Many researchers have suggested that online shopping is a goal-
oriented behavior of some magnitude and the extrinsic motivators such as the tangible
rewards (e.g. time saving, cost reduction and bargain dealing) or the intangible benefits (e.g.
round-the-clock convenience, hassle-free shopping, less dependency on the physical stores,
access to detailed product information and availability of wide product selection)
predominantly evoke the customers‘ online purchase intentions (Çelik, 2011; Lim and
Dubinsky, 2004; Wolfinbarger and Gilly, 2001).

Results of Koufaris (2002) confirmed the double identity of the online consumer as a shopper
and a computer user because both shopping enjoyment and perceived usefulness of the site
strongly predict intention to return. Through an exploratory study Yang and Jun (2002)
deciphered six service quality dimensions (reliability, access, ease of use personalization,
security, and credibility) in the context of internet commerce, from the perspectives of
internet purchasers and internet non-purchasers. Janda et al., (2002) mentioned that
performance dimension goes beyond the customer's receipt of the appropriate merchandise
and it includes the amount of time and hassle that online consumers perceive it takes to
complete the entire sales transaction. Therefore, transaction efficiency and delivery
fulfillment were conceptualized as components of the performance dimension. Chen et al.
(2002) argued that privacy and security are major impediments of online shopping.
Therefore, virtual stores need to educate consumers about the benefits and risks. A
knowledgeable consumer can willingly adapt to online shopping and protect themselves
while engaging in online transactions. Foucault and Scheufele (2002) noticed a strong
correlation between perception that needs, such as good customer service and a hassle-free
shopping environment would be met online and likelihood to make an online purchase. This
correlation was found to be strong for both past and future intended purchasing behavior.
62 Apeejay Journal of Management and Technology July

However, cost was not considered an important factor in the decision to purchase online.
Similarly, Sin and Tse (2002) observed that as compared to non-buyers, internet buyers have
more favorable attitudes towards the security and reliability, convenience, and product
variety of Internet shopping.

Gefen, (2002) highlighted that recent uses of SERVQUAL in evaluating constructs in the
B2C domain have found significant results. Tangibility has been found to be associated with
increased consumer loyalty and a combined dimension of responsiveness, reliability, and
assurance with increased consumer trust. As per Webb and Webb (2004) tangibility in B2C
context should include latest technology design for overall visual appeal and professional
appearance of web site. Riel et al., (2001) also argued that the ‗tangibility‘ dimension of
SERVQUAL could be replaced by a dimension of ‗web design‘ or ‗user interface‘. In their
study Karayanni (2003) found that the most powerful discriminant variable between web
shoppers and non-shoppers was shopping motives, which primarily include time efficiency,
availability of 24 hours shopping and queues avoidance. Constantinides (2004) brought out
that for an online shopper web experience embraces elements like searching, browsing,
finding, selecting, comparing and evaluating information as well as interacting and
transacting with the online firm. This experience and interaction with the web are influenced
by design, events, emotions, atmosphere and other elements of websites meant to induce
customer goodwill and affect the final outcome of the online interaction. Kim and Lee (2002)
pointed out that during information phase design factors are mostly related to the process of
searching for specific products or browsing around the system for interesting items.
Constantinides (2004) highlighted that components of uncertainty reducing elements are
―frequently asked questions‖ (FAQs) and conflict-resolution policies. An easy access to this
type of information will enhances trust. It will also reduce the number of inquiries of
customers with questions on such issues. Constantinides (2004) suggested that online
marketers should identify elements enhancing or undermining trust among potential
customers and try to understand how those can affect the online customer‘s perceptions. Such
knowledge is valuable for incorporating the right mix of trust-establishing elements in the
web site and creating the proper organizational infrastructure, i.e. technological,
organizational as well as managerial, which is required for delivering this mix. Gummerus et
al. (2004) mentioned that prompt response to customer‘s requests can increase perceived
convenience and diminish uncertainty. Certain researchers used ‗responsiveness‘ as a label to
describe online retailers‘ prompt response to customer inquiries and information request
(Kim and Lee, 2002; Parasuraman, Zeithaml, and Berry, 1988).

Yang and Fang (2004) said that besides traditional communication means such as phone call,
online customers also look for prompt responses and confirmation to their inquiries through
e-mail. Customers become annoyed or even angry when they don‘t receive any response from
firm. Shih (2004) cited that consumer see an e-market as a trading center that supports e-
shopping processes—from searching and requesting target products/services, evaluating and
selecting candidate products or services, to ordering, delivery, and final payment. Quaddus
and Achjari (2005) proposed high level framework of electronic commerce success. This
framework includes internal drivers (cost leadership, reputation, and market and business
entry), external drivers (product pricing, time spent, convenience and external relationship),
internal impediment (financial, risks and expertise) and external impediments (customer‘s
expense, delivery time, transaction risk and access). Gounaris et al., (2005) investigated
specific antecedents of perceived service quality in the internet environment such as trust,
experience, excitement and extent of using e-commerce, frequency of purchases,
supplemented by reasons for shopping on line such as price discounts, convenience, product
2016 Prateek Kalia, Navdeep Kaur and Tejinderpal Singh 63

availability, and purchase conditions. Delivery fulfillment includes a firm's accuracy in

product delivery and its willingness to correct mistakes which occur during the transaction.
This sub-dimension is similar to Parasuraman et al., (2005) reliability dimension as both
stress the importance of accurate delivery and error-free order processing (Janda et al., 2002).
Through the results of three laboratory studies Morales et al. (2005) noted that for familiar
categories, congruency between a consumer‘s internal categorization structure and the
external store layout leads to higher perceptions of variety and higher satisfaction with
product choices, while for unfamiliar product categories, congruency between shopping goals
and external structure leads to lower perceptions of variety but increased satisfaction with the
store‘s assortment.

Phase III (From 2006-2010)

Xie et al., (2006) recommended online retailers to offer rewards such as discounts or coupons
to encourage consumers who are likely to wait or search for a lower price to complete the
purchase. Francis (2007) in their literature review mentioned about PIRQUAL (Francis and
White, 2002) and eTailQ (Wolfinbarger & Gilly, 2003) which include dimensions like
website (site design and content), delivery/fulfillment (accuracy and reliability of product
delivery), customer service (pre or post-purchase enquiries and problem-handling) and
security/privacy (credit card details and personal information). Hassanein and Head (2007)
suggested that adding socially rich descriptions and pictures can infuse social presence into
websites which in turn positively impact the perceived usefulness, trust and enjoyment of a
commercial website, thus creating favorable attitudes towards that online store. Hasslinger et
al., (2007) observed that while buying online, additional costs such as freight charges,
customs or prolonged delivery times can influence the online consumer‘s decision to
reconsider the transaction even though the price is low. Mukherjee and Nath (2007)
suggested a significant modification to the traditional commitment-trust theory (CTT) model
in the online environment. They found that privacy and security features of the website along
with shared values are the key antecedents of trust, which in turn positively influences
relationship commitment. Behavioral intentions of customers are outcome of both trust and
commitment. The relationship termination cost and relationship benefit have a negative and
positive effect on customer commitment respectively. Rajamma et al., (2007) observed that
motivational profiles of bricks and mortar and online shoppers for tangible product categories
are slightly different. For entertainment electronics and functional products bricks and mortar
consumers attaching a higher importance to merchandise, assurance, hassle reduction, and
enjoyment motivation factors show a significant effect than practicality and responsiveness
dimensions. Research studies highlighted that most important aspect of online retailing from
the customer‘s perspective is the increase in access and choice, and especially in the
information on products and services. Earlier a typical customer used to get choice limited to
local level (one‘s specific county, city or state) (Balto, 2000).

Whereas in the age of the internet, consumer can choose from lot of online retailers located
anywhere in the world (Mukherjee and Nath, 2007). Rodríguez-ardura et al., (2008)
highlighted that price is not the only important element in the design of the value proposition,
but other elements like product information, website design, customer service, reliability and
speed of delivery, brand image, facilities for making orders, loyalty programs,
personalization of the communication and switching costs are equally important. Yang and
Jun (2008) identified seven dimensions in the internet non-purchaser group, i.e. security (risk
associated with online purchase, continuous credit card charges, sensitive information, and
distrustful internet retailers), responsiveness (slow internet speed, online jam, slow responses
from online retailers, slow information retrieval, and delayed responses), ease of use
64 Apeejay Journal of Management and Technology July

(difficulties in following the organization and structure of online catalogs, understanding

content, grasping terms and conditions related to products and services, and the lack of
sufficient product/service description), availability (limited product and service selection,
hard-to-find desired products and services, and out-of-date information contained in online
catalogues), reliability (failure to e-mail or call customer by a promised time, uncertainty of
delivering the right products, and worry concerning incorrect charges), personalization
(difficulty in receiving personalized customer service and interacting with internet retailers in
real time for questions), and access (inaccessibility of retailers, customer representatives, and
online help sources such as chat rooms and bulletin boards). Since convenience and time
saving are biggest drivers of consumers‘ online grocery shopping (Morganosky and Cude,
2002), grocery retailers should configure their web to enhance consumers‘ perceptions of
relative advantage and compatibility in shopping grocery products and reduce perceived
complexity in searching and ordering grocery products online (Lim, Widdows, and Hooker,
2009). Some researchers argued that large amount of information can confuse e-customers;
therefore e-retailer should screen appropriate information to consumers. Simplification,
personalization and maintaining information load at optimum level can create a pleasant e-
storefront (Chen et al., 2009; Huang, 2003). Ganguly et al., (2010) conducted a study with
culture as a moderator in the relation between website design and trust in the context of B2C
online shopping. Their results indicated that culture acts as moderator in the relationship
between website design factors and trust, and also between trust and purchase intention.
Further, they also noticed that trust was given more importance by Indians (compared to the
Canadians and Americans) to reduce perceived risk. Lin et al., (2010) mentioned that eight e-
marketing terms are perceived as essential for all styles of shoppers: privacy policy, shopper
service section, the return policy, web sites‘ interface is user friendly, availability of preferred
product, product picture, online payment option and order checking facility. While shopping
in general, online shoppers view e-marketing term of ‗the availability of sales, discounts, or
special offers‘ to be more important. Close and Kinney (2010) indicated that price-motivated
consumers have a higher frequency of placing items in their online carts compared to those
not motivated by reduced cost offers. This price-related cart use behavior arises because some
sites do not reveal the total price of the item, with tax and shipping/handling fees, until the
shopper actually places item into the cart. They found that promotion programs stimulate
promotion programs, and recommended that every-day low pricing such as discount
programs give consumers a greater sense of economic gain and control. Kukar-Kinney and
Close (2010) proposed an extension of inhibitors to the online purchase process i.e. social
influences, lack of availability, high price, shopper‘s financial status, time pressure,
organization and research, privacy & security issues and technology glitches and issues. They
found that even without purchasing, merely placing items in a cart is a form of entertainment
or boredom release for online shoppers and concerns about the total cost of the order and the
shopper‘s intention to wait for a lower price were two other important drivers of cart
abandonment.
2016 Prateek Kalia, Navdeep Kaur and Tejinderpal Singh 65

Phase IV (From 2011-2016)

The research by Close and Kinney (2010) confirmed that many shoppers who use their virtual
carts indeed intend to make an online purchase at that time. Online retailers should make the
purchase process as simple and hassle-free as possible (e.g., availability of one-click buying
option for returning customers). This will prevent customer flight to a competitor's site, retail
store, or an alternative channel. However, in order to convert visitor into buyer, online stores
should focus on creating fast website with functional design. This will improve their website
by offering customer a comfortable, logical, interesting and hassle-free process and easy
language (Katawetawaraks and Wang, 2011). Results of Kim et al., (2011) indicated that
navigation functionality and perceived security had a significantly positive effect on trust.
But that transaction cost had no effect on trust. Satisfaction was found to positively impact
trust which, in turn, influenced customer loyalty. Their findings indicated that customer
satisfaction influences trust, which plays a key role as an antecedent of customer loyalty.
Becerra and Korgaonkar (2011) found that brand trust beliefs affect online intentions, and
may be needed to increase online sales. The influence of vendor trust beliefs on online
intentions varies with brand trust, beliefs for products and for services is increased by brand
trust beliefs. Chang (2011) noticed an improvement in participants‘ attitudes toward online
store when the products were sorted into more subcategories (9 as opposed to 3), such that
more subcategory options appeared in the selection menu because participants perceived that
the website offered a greater variety of products and experienced greater ease of navigation
and shopping pleasure. Cha (2011) compared real and virtual items with respect to factors
affecting purchase intention and consumer characteristics. They used a survey of 350 college
students; the study revealed that college students apply different criteria according to the
product types while making the decision to use an online shopping channel. Perceived
benefits and risks of online shopping affect intention to purchase real items through the
Internet, but they have no impact on intention to purchase virtual items. In particular,
perceived usefulness, ease of use, enjoyment, security, social norm, flow, and gender affect
intention to purchase real items through the internet. For virtual items, social norm and
gender are the two predictors of intention to purchase. Lim et al., (2011) adopted a rule-based
comparison shopping framework using the Extensible Rule Markup Language (XRML)
architecture, which computes the exact personalized delivery cost at comparison sites. They
conducted an experiment on the purchase of books based on real-world data from five leading
online bookstores. In their experiment they observed that rule-based comparison can
significantly outperform data-based comparison in terms of the total cost of product and
delivery. They also found that the comparison of delivery cost is very important because the
variance of delivery cost can be as big as the variance of book prices itself.

Lin et al., (2011) studied the moderating effects of household (e.g., shopping frequency) and
product (e.g., sensory nature) characteristics on household brand loyalty, size loyalty and
price sensitivity across online and offline channels for grocery products. They found that
households are more brand loyal, more size loyal but less price sensitive in the online channel
than in the offline channel. Brand loyalty, size loyalty and price sensitivity are closely related
to household and product characteristics. Light online shoppers exhibited highest brand and
size loyalties, but the lowest price sensitivity in the online channel. Heavy online shoppers
displayed lowest brand and size loyalties, but the highest price sensitivity in the online
channel. Moderate online shoppers exhibited highest price sensitivity in the offline channel.
The online-offline differences in brand loyalty and price sensitivity were largest for light
online shoppers and smallest for heavy online shoppers. The online–offline differences in
brand loyalty, size loyalty and price sensitivity were larger for food products and for sensory
66 Apeejay Journal of Management and Technology July

products. Javadi et al., (2012) found that fear of losing money and financial details and non-
delivery of order have negative influence on attitude towards shopping online. Swilley and
Goldsmith (2013) found that consumers found more enjoyment in shopping at the mall on
Black Friday than shopping online on Cyber Monday. The enjoyment leads to a positive
attitude toward shopping either at the mall or online and has a significant bearing on the
intention to shop on these two days. Mall shopping was found to be more enjoyable due to
opportunity to shop with others as well as experience holiday decorations, whereas online
shopping lacks these experiences and can be anxiety-driven.
In their empirical study Lian and Yen (2014) concluded that, for older adults, the major
online shopping driving forces are performance expectation and social influence and major
barriers are value, risk, and tradition, younger consumers have significantly higher drivers
and lower barriers than their older counterparts and the moderating effects of gender
difference are insignificant. Khan et al., (2015) investigated the perceived factors affecting
customer satisfaction leading to re-purchase intention in e-stores and suggested that seven
constructs i.e. price, convenience, product information, return policy, financial risk, product
risk and delivery risk are significant in defining customer satisfaction and decision to re-
purchase in e-stores. Kalia et al., (2016) established that, while searching for product
information before shopping or buying products online, customers mostly rely on search
engines, review and company websites. Online retailer website, social networking sites, blogs
and newspapers are not very popular source of information. Source of information has
statistical significant relationship with demographic variables like city, age, occupation,
family income, gender and marital status. While comparing various online service quality
scales, Kalia (2017) observed that security, website design, information, reliability, privacy,
responsiveness, access, ease of use, customer service and personalization are the consistently
cited dimensions.

Table 1: Studies Related to Factors Affecting Online Buying Behavior

Variables
Affecting
Related Studies
Online Buying
Behaviour
Cha, 2011; Helander et al., 1997; Jarvenpaa & Todd, 1997; Keeney, 1999; Yang & Jun,
Ease of use
2008
Balto, 2000; Helander et al., 1997; Karayanni, 2003; Li et al., 1999; Mukherjee & Nath,
Access 2007; Phau & Poon, 2000; Quester & Chong, 2001; Wolfinbarger & Gilly, 2001; Yang &
Jun, 2008
Gounaris et al., 2005; Helander & Khalid, 2000; Keeney, 1999; Kukar-Kinney & Close,
Availability
2010; Lin, Cassaigne, & Huan, 2010; Yang & Jun, 2008
Bellman et al., 1999; Bhatnagar et al., 2000; Foucault & Scheufele, 2002; Gounaris et al.,
2005; Martin G. Helander & Khalid, 2000; Karayanni, 2003; Khan et al., 2015; Li et al.,
Convenience
1999; Lohse & Spiller, 1998; Raijas & Tuunainen, 2001; Sin & Tse, 2002; Wolfinbarger &
Gilly, 2001
Cha, 2011; Close & Kinney, 2010; Hassanein & Head, 2007; Helander & Khalid, 2000;
Enjoyment Keeney, 1999; Koufaris, 2002; Kukar-Kinney & Close, 2010; Swilley & Goldsmith, 2013;
Wolfinbarger & Gilly, 2001
Chen, Shang, & Kao, 2009; Close & Kinney, 2010; Jarvenpaa & Todd, 1997; Kalia et al,
Information 2016; Keeney, 1999; Khan et al., 2015; Kim & Lim, 2001; Li et al., 1999; Phau & Poon,
2000; Raijas & Tuunainen, 2001; Vrechopoulos et al., 2001; Wolfinbarger & Gilly, 2001
Balto, 2000; Broniarczyk et al., 1998; Çelik, 2011; Chang, 2011; Keeney, 1999; Morales et
Choice
al., 2005; Mukherjee & Nath, 2007
Incentive/ Close & Kinney, 2010; Gounaris et al., 2005; Jarvenpaa & Todd, 1997; Kukar-Kinney &
Discounts Close, 2010; Lin et al., 2010; Quester & Chong, 2001; Xie et al., 2006
Product Chang, 2011; Keeney, 1999; Li et al., 1999; Lin et al., 2010; Sin & Tse, 2002; Wolfinbarger
offerings & Gilly, 2001
2016 Prateek Kalia, Navdeep Kaur and Tejinderpal Singh 67

Consumer Elliot & Fowell, 2000; Foucault & Scheufele, 2002; Helander et al., 1997; Keeney, 1999;
service Liao & Cheung, 2001; Raijas & Tuunainen, 2001
Bellman et al., 1999; Helander & Khalid, 2000; Mukherjee & Nath, 2007; Vrechopoulos et
Personalization
al., 2001; Wolfinbarger & Gilly, 2001; Yang & Jun, 2002, 2008
Elliot & Fowell, 2000; Javadi, Dolatabadi, Nourbakhsh, & Asadollahi, 2012; Khan et al.,
Delivery
2015; Kim & Lim, 2001
Payment
Kim & Lim, 2001; Kukar-Kinney & Close, 2010; Lin et al., 2010; Vrechopoulos et al., 2001
methods
Close & Kinney, 2010; Foucault & Scheufele, 2002; Helander & Khalid, 2000; Keeney,
1999; Khan et al., 2015; Kukar-Kinney & Close, 2010; Li et al., 1999; Liao & Cheung,
Price
2001; Lim et al., 2011; Lin et al., 2011; Phau & Poon, 2000; Raijas & Tuunainen, 2001;
Vrechopoulos et al., 2001
Cha, 2011; Chen et al., 2002; Helander & Khalid, 2000; Jarvenpaa & Todd, 1997; Keeney,
Security 1999; Kukar-Kinney & Close, 2010; Li et al., 1999; Liao & Cheung, 2001; Mukherjee &
Nath, 2007; Sin & Tse, 2002; Yang & Jun, 2008
(Chen et al., 2002; Keeney, 1999; Kim & Lim, 2001; Kukar-Kinney & Close, 2010; Lin et
Privacy
al., 2010; Mukherjee & Nath, 2007)
Serviceability/
Constantinides, 2004; Jarvenpaa & Todd, 1997; Keeney, 1999; Khan et al., 2015; Lin et al.,
Conflict
2010
Resolution
Becerra & Korgaonkar, 2011; Constantinides, 2004; Ganguly, Dash, Cyr, & Head, 2010;
Trust
Hassanein & Head, 2007; M.-J. Kim, Chung, & Lee, 2011; Phau & Poon, 2000
Hasslinger et al., 2007; Keeney, 1999; Kukar-Kinney & Close, 2010; Quaddus & Achjari,
Delivery time
2005; Rodríguez-ardura et al., 2008
Delivery Hasslinger et al., 2007; Jarvenpaa & Todd, 1997; Keeney, 1999; Kukar-Kinney & Close,
charges 2010; Lim et al., 2011
Tangibility/ Gefen, 2002; Jarvenpaa & Todd, 1997; Keeney, 1999; Lin et al., 2010; Peterson et al., 1997;
Sensation Phau & Poon, 2000; Riel et al., 2001; Shim & Mahoney, 1991; Webb & Webb, 2004
Francis & White, 2002; Francis, 2007; Janda et al., 2002; Keeney, 1999; Wolfinbarger &
Order accuracy
Gilly, 2003
Online Bhatnagar et al., 2000; Janda et al., 2002; Javadi et al., 2012; Keeney, 1999; Khan et al.,
purchase risk 2015; Lian & Yen, 2014
Perceived Bellman et al., 1999; Çelik, 2011; Close & Kinney, 2010; Janda et al., 2002;
control Katawetawaraks & Wang, 2011; Rajamma et al., 2007
Purchasing Bellman et al., 1999; Constantinides, 2004; Kim & Lee, 2002; Kukar-Kinney & Close,
process 2010; Lim et al., 2009; Lin et al., 2010; Shih, 2004
Jarvenpaa & Todd, 1997; Keeney, 1999; Kim & Lee, 2002; Parasuraman et al., 1988; Yang
Responsiveness
& Fang, 2004; Yang & Jun, 2008
Source: Authors‘ compilation based on literature review.

Conclusion and Managerial Implications

In this review twenty-six factors affecting online buying behavior have been identified (Table
1). Out of twenty-six factors, seven factors have been heavily cited throughout the studies
under review; these are price, convenience, security, information, enjoyment, access, and
tangibility/sensation.

Price
Price of the product being an important factor affecting online buying behavior, prices of the
web store should not be higher than those of the physical stores. There have been evidence by
researchers where internet shoppers don‘t prefer to buy online if the prices are higher
(Vrechopoulos et al., 2001). Customer seek abundant choice and low price from online stores
(Khan et al., 2015). To achieve low price, retailers can offer to the customers to ―buy online,
pick offline‖. This will allow consumers to save shipping and handling fees (Kukar-Kinney
and Close, 2010). A reduction in delivery cost will increase willingness to buy from e-shop
(Liao and Cheung, 2001; Raijas and Tuunainen, 2001). Secondly, e-retailers may offer
68 Apeejay Journal of Management and Technology July

discounts, as consumer prefer price promotions over every-day low pricing because it gives
them greater sense of economic control and gain. Third, retailers should try to reduce
customers‘ search costs by incorporating search mechanism and providing list prices, auction
prices or development over past few months (Helander and Khalid, 2000). Fourth, e-retailers
can provide ―persistent‖ shopping carts to online shoppers, which don‘t get emptied even
when consumer exits website. On returning to the websites these carts should automatically
recalculate prices, offer new promotions and give a new total cost of the transaction. This will
save customers effort to find the relevant product again. Fifth, in case of shopping cart
abandonment or items sitting in the cart for long time, retailers can send reminder e-mail with
promotional offer to the consumer, offering lower or free shipping on the item(s) or
information regarding price reduction on the items (Close and Kinney, 2010; Kukar-Kinney
and Close, 2010). These offers can also be made through social media advertisements (Khan
et al., 2015). Sixth, companies can offer slow service at lower or no cost to any location to tap
price sensitive buyers (Keeney, 1999). Finally, online retailers should attempt to differentiate
their products or services to mitigate price-comparisons less meaningful. (Li et al., 1999).

Convenience
For new customers, convenience is very important because customers leave their shopping
halfway due to lengthy procedures or issues like money transfer or non-acceptance of money
cards. Therefore, online stores should offer familiar shopping experience by taking advantage
of rich information, easy access and convenience of the Internet (Li et al., 1999). Site should
be made more convenient for standard or repeat purchases, for e.g. one click purchase
approach by Amazon (Bellman et al., 1999). Its recommended that designers should keep the
web interface easy to use, products should be easily searchable (Raijas and Tuunainen, 2001),
text should be succinct and short aiding scan ability through informative headlines, white
space should be judiciously used, there should be multiple level of headings with color text as
visual cues (Lohse and Spiller, 1998), web page should consume less memory, download
faster (Sin and Tse, 2002) and it should be designed to reduce risk perception (Bhatnagar et
al., 2000). Marketers should stress themes like time saving, convenience, rapid service and
inconvenience aspects of traditional shopping in their communication (Karayanni, 2003).

Security
One of the most challenging issues faced by e-businesses is security. Risk of online shopping
coupled with doubt regarding truthfulness of internet company may prevent internet non-
purchasers from becoming internet purchasers (Yang and Jun, 2008). Customers are
apprehensive to share their personal or financial information over the internet. There have
been studies which confirmed that transaction security can exert a negative effect on
willingness and consumer become reluctant to share credit information if risk increases (Liao
and Cheung, 2001). To counteract this issue, internet marketers should educate customers
about Secure Electronic Transaction (SET) system (Sin and Tse, 2002). An educated
customer can protect themselves while engaging in online transactions (Chen et al., 2002).
Online merchants can offer multiple payment options, data encryption during transactions
and display security seals to reassure customers (Cha, 2011; Close and Kinney, 2010;
Jarvenpaa and Todd, 1997; Mukherjee and Nath, 2007).

Information
The quality, quantity and presentation of information is very important to attract and retain
customers (Raijas and Tuunainen, 2001). To encourage customers to place an order, it‘s
important for e-retailer to provide sufficient information (Close and Kukar-Kinney, 2010).
Customer dislike outdated information and linkages, non-intuitive ordering procedures, or
2016 Prateek Kalia, Navdeep Kaur and Tejinderpal Singh 69

processes that involve remembering product codes or calculation of shipping costs and tax
(Jarvenpaa and Todd, 1997). E-stores can share high quality and useful information through
surround videos, 3D pictures and VR technology (Khan et al., 2015; Kim and Lim, 2001; Li
et al., 1999). Three most crucial elements of an e-store are product information, price
comparison among alternative products and fast access to the store's web site (Vrechopoulos
et al., 2001). If customer get information they want and transact easily, they are less likely to
make search effort for lower price alternative (Wolfinbarger and Gilly, 2001). However too
much information may not be good for customers, therefore its advised that e-stores should
maintain information load at an optimal level to create pleasant e-storefront(Chen et al.,
2009).

Enjoyment
Researchers have found that shopping enjoyment can help retain customers. Therefore, its
recommended that e-stores should offer both utilitarian and hedonic value (Koufaris, 2002).
Positive surprises and ability to interact with similar interest group brings enjoyment
(Wolfinbarger and Gilly, 2001). Hassanein and Head (2007) extended previous models to
study the impact of social presence in the online environment and found that enjoyment is
significant consequence of perceived social presence in addition to perceived usefulness and
trust. Some researchers have found that few people find shopping as a recreational activity
therefore e-stores should establish enjoyable shopping environments (Cha, 2011).

Access
Accessibility and convenience are usually linked with control and freedom (Wolfinbarger and
Gilly, 2001). Customers can shop from more comfortable and personalized environment of
home, taking benefit of rich information, easy access and convenience of the Internet (Li et
al., 1999). Therefore, increasing access and choice are most important facets of online
shopping (Mukherjee and Nath, 2007). Yang and Jun (2008) suggested improvement in
personalization and access for retaining and attracting customers, as these factors
significantly affect assessment of overall service quality (Yang and Jun, 2008).

Tangibility/ Sensation
Tangibility dimension which is often linked to state-of-the-art appearance of the website,
enhances customer loyalty (Gefen, 2002). Therefore, its recommended that online marketers
should provide richer product details and descriptions (Jarvenpaa and Todd, 1997).
Researchers have found that internet marketing is suitable for service-related or high
differentiation goods (Peterson et al., 1997; Phau and Poon, 2000).

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