Exploring The Factors That Influence Customers Shopping Behaviour: The Case of Online Retail Business in Chile

Note from Module Leader – this project achieved 70%
Exploring the factors that influence

customers shopping behaviour:
The case of online retail business
in Chile
By XXXX
Dissertation submitted in partial fulfilment for the degree of

MBA (International Management)
August 2019
Acknowledgements
XXXXXX – these were deleted to anonymise the project report.

Exploring the factors that influence customers shopping behaviour: The case of online retail business in Chile
London South Bank University
Table of Contents
Executive summary ................................................................................................... 5

I. Introduction ......................................................................................................... 7
1.1 Research idea – Research questions and objectives ......................... 7
II. Literature review ................................................................................................ 9
2.1 Conceptual framework .............................................................................. 9
2.2 Multinationals that have failed in the e-commerce of the retail sector
9
2.3 Challenges and opportunities in the Chilean e-commerce ............... 10
2.4 Customer relationship - Customer behaviour and expectations ...... 12
III. Methodology ..................................................................................................... 16
3.1 Research philosophy and research approach .................................... 16
2
3.2 Research design: secondary sources .................................................. 16

3.2.1 CASEN: Description survey ................................................................. 16
3.2.2 SUBTEL: Description survey ............................................................... 18
3.3 Research design: primary sources ....................................................... 18
3.3.1 Participants profile ................................................................................. 19
3.3.2 Sampling method................................................................................... 19
3.3.3 Techniques and procedures ................................................................ 20
IV. Findings, analysis and discussions of the results ...................................... 23
4.1 CASEN ...................................................................................................... 23
4.2 SUBTEL: Ninth access and use of internet 2017 ............................... 25
4.3 Primary source: expectations survey ................................................... 31
4.3.1 Selected descriptive statistics ............................................................. 31
4.3.2 The logistic regression model .............................................................. 35
4.3.3 Types of variables: the problem and its solution .............................. 35
4.3.4 Variable selection and the final logistic regression model .............. 36
4.3.5 Interpretation of coefficients................................................................. 41
4.3.6 Predicted probabilities for selected customers’ profiles .................. 43
V. Conclusions ...................................................................................................... 47
5.1 Recommendations .................................................................................. 50
5.2 Limitations and Further Researches .................................................... 50
VI. Appendix ........................................................................................................... 52
6.1 Appendix: Definition of variables, CASEN........................................... 52
6.2 Appendix: Definition of variables, SUBTEL ......................................... 54
6.3 Appendix: CASEN: multidimensional analysis ................................... 56
6.4 Appendix: Questionnaire flow chart ...................................................... 58
6.4.1 Abroad versus Chile e-commerce questions .................................... 59
6.4.2 Chilean E-commerce versus in-store in Chile questions ................ 60
6.5 Appendix: Codes, names and questions of the variables -
expectations survey ............................................................................................ 61
6.6 Appendix: SPSS Code, CASEN ........................................................... 63
6.7 Appendix: SPSS Code, SUBTEL .......................................................... 68
6.8 Appendix: R Code, expectation survey ................................................ 73
6.9 Appendix: Full model table..................................................................... 75
6.10 Appendix: Ethical considerations .......................................................... 76
3
6.11 Appendix: Likert scales ........................................................................... 76

6.12 Appendix: Turnitin Report ...................................................................... 76
Bibliography .............................................................................................................. 77
4
Executive summary
This research analyses the main factors that impact on influence customers
shopping behaviour about shopping online from Chile. This study is based on primary
and secondary sources. The latter include two Chilean surveys of public domain that
were conducted by governmental agencies. The former was collected through online
surveys conducted by the researcher including special questions with the purpose of
gaining knowledge about two kinds of comparative experiences:
• Shopping online from Chile versus shopping online from another

country, and
• Shopping online from Chile versus shopping in-store in Chile.
Therefore, the questionnaire required to be answered by experienced online

buyers with a solid foundation on which they can build their own expectations about
the e-commerce in Chile. Considering these two comparative experiences allowed
making statistical inference about which one of these is more important than the other
and, within each one of these, identifying the more important factors that affect the
probability of meeting customers’ expectation about e-commerce in Chile.
In order to analyse the information, several quantitative and statistical methods

were used. An assessment of the current situation of the e-commerce in Chile was
conducted based on descriptive analyses of secondary sources. The primary data
were collected through an online survey that was distributed in the social media for
two weeks. This survey recruited 270 respondents from which 180 met the
established criterion. The collected data were analysed using both descriptive
statistics and regression model techniques that enabled to make statistical inferences.
The selected regression model was the “logistic regression model” as the dependent
variable was dichotomous. As part of the variable’s selection process, different
stepwise regression methods were used from which the chosen one was backwards
elimination. In addition, individual significance tests and likelihood ratio tests were
also included in the analysis in order to get the final regression model to be analysed.
5
The final logistic regression model considered four statistically significant

predictors. The dependent variable was “Expectation meeting of E-commerce in
Chile”, which was explained mainly by the following variables: making prices cheaper
online than in-store, improving the access to reviews and recommendations,
increasing the variety of products offered online and upgrade the delivery-related
aspects of online shopping.
The results of this study are a contribution to the understanding of the consumers’
attitude towards e-commerce with application in the Chilean market. Therefore, they
are useful not only for the academic community but also for companies interested in
the Chilean market.
6
I. Introduction
The e-commerce industry has rapidly grown over the last decade. Global sales of
the business to consumer (B2C) industry have increased more than 229% in the
current decade (2010-2017) (Lever, 2018). Therefore, it is interesting to analyse this
thriving industry not only from the companies’ perspective but also from the
consumers’ point of view.
This study shows the current situation of e-commerce in Chile and different
aspects that could impact on the customer shopping behaviour in the Chilean online
retail sector, which is the aim of this project. The analysis takes into consideration a
primary source of information based on comparative experiences of the respondents
of a survey who were asked about their assessment of the online Chilean market
versus both the in-store market in Chile and the online market abroad. Ethical
considerations are described in Appendix 6.10. It also considers secondary sources
of information in order to build a more general background.
1.1 Research idea – Research questions and objectives
The research idea is based on identifying the factors that impact on influence
customers shopping behaviour about e-commerce in Chile. Therefore, the main
research question is “among those consumers between 18 and 45 years, what are
the main factors that impact on the customer shopping behaviour in the Chilean online
retail sector?” The reasons why this group of people was selected will be discussed
in Section 3.3.1. All the analysis is based on the retail sector defined in Section 2.1.
Therefore, whenever the study refers to “buying online”, “buying in-store”, “E-
commerce”, it is referring to sales in the retail sector only. As discussed in the
literature review, there are other questions that will provide insights to answer the
main research question, which are listed as follows:
• How is the role and extent of e-commerce activities in Chile perceived by the
main stakeholders?
7
• What are the buying preferences of consumers in Chile?

• What aspects of Chilean E-commerce need to be improved?
• What are the common challenges and constraints faced by Chile in e-
commerce?
• What are the lessons learned from the past decade’s investments and
activities related to such commercial activities in emerging markets such as
Chile?
The associated research objectives are:

• Analyse the performance of e-commerce in Chile.
• Evaluate comparative experiences of individuals who have experienced
purchasing online from Chile and from other countries.
• Evaluate comparative experiences of individuals who have experienced
purchasing online from Chile and in-store in Chile.
• Identify the factors that impact the most in the customer’s probability of
meeting their expectations about e-commerce in Chile.
8
II. Literature review
2.1 Conceptual framework
A conceptual framework is necessary in order to clarify some concepts that

will be used later in this research. Some authors define e-commerce as “digitally
enabled commercial transactions between and among organisations and individuals”
(Kenneth C. Laudon, 2016). (Chaffey, 2015) defines e-commerce as “all electronic
mediated information exchanges between an organisation and its external
stakeholders”. This author also distinguishes two types of e-commerce:
• Buy side e-commerce: “E-commerce transactions between a purchasing
organisation and its suppliers.”
• Sell side e-commerce: “E-commerce transactions between a supplier
organisation and its customers.”
This research considers the sell side e-commerce focused in business to

consumers (B2C) in the retail. According to (Kenneth C. Laudon, 2016), the retail
industry is composed of the following types of firms: ‘Durable goods, general
merchandise, food and beverage, specialty stores, gasoline and fuel, mail
order/telephone order1 and online retail firms.” This research is intended for online
retail firms and specialty stores which sell their products online.
2.2 Multinationals that have failed in the e-commerce of the

retail sector
There are some cases of multinationals operating in developing countries

which have failed. This the case of Amazon, which is withdrawing its assets related
to marketplace from China. Some analysts suggest that the main cause of Amazon’s
fail is that the company was not able to adapt itself to the local market and to the
preferences of Chinese consumers (Ye, 2019). A good example of this is the Amazon
1 Catalogue sales.
9
website design, which is organised and clean whereas Chinese consumers prefer
crowder websites with a lot of products in the same page (Ye, 2019). Another
important factor that could influence in the Amazon’s fail is the change resistance.
Although the company was aware about the consumers’ preferences, it was difficult
to implement the required changes inside the company. Amazon is not the only
company who has failed in China. The giant eBay, another retailer, failed because of
the same reason 13 years ago (Ye, 2019).
In the Chilean market, great failures related to e-commerce have not occurred.
However, it is well known that some successful multinational companies have failed
in the Chilean retail industry because of cultural factors. This is the case of Home
Depot (home improvements retailer), Carrefour (groceries store), Royal Ahold
(groceries store) and J.C. Penney (department stores) which withdrew their assets
after operating in Chile for three to five years (Warthon, University of Pennsylvania,
2007).
Bianchi and Ostale studied the causes that leaded these companies to fail in Chile
and they identified strategic and cultural factors as reasons of the failure (Bianchi &
Ostale, 2006). The former factors are related to the fact that these retailers did not
have a clear strategy for expanding into new markets. Besides, they did not adapt
their strategy to the Chilean environment, and they were not able to take advantage
of their relationship with Chilean partners. Regarding to cultural factors, the authors
suggest that these companies did not consider the preferences of Chilean consumers,
and their managers did not want to be part of the “business community” which is a
very important cultural aspect in the Chilean society.
2.3 Challenges and opportunities in the Chilean e-commerce
Chilean e-commerce presents great opportunities and big challenges for

companies operating online. Despite E-commerce in Chile has increased in 17
percentage points in the last six years (MDS, 2018), this represented only 5% of the
total retail sales in the 2017 (Lever, 2018) In comparison with other countries, this
percentage is low as it is the case of e-commerce in the United Kingdom, where it
10
reached 15.2% of the total retail sales in January 2017 (Statista(a), 2019) . One of
the opportunities is given by the high rate of internet users. In comparison to other
Latin-American countries, Chilean internet users represent 87.4% of the total
population (SUBTEL, 2017) in contrast with Argentinean and Peruvian internet users
which reach 74.4% and 48.73% of the total population respectively (Marketline, 2017).
This is a clear signal that Chile has a big potential number of online consumers.
The Chilean e-commerce B2C is led by two companies mainly, “Mercado Libre”
the biggest e-commerce company in Latin America operating in 18 countries of the
region (Mercado Libre, 2019) and Falabella.cl (Solminihac, 2017). According to
SERNAC, the number of companies with activities in e-commerce was incremented
during the period 2011-2013 from 1,253 to 2,857, almost a 130% increase (Sernac,
2014).
According to (Flores, 2018) the main problems that the Chilean e-commerce is
facing is related to logistics issues, where delivery time and infrastructure are the main
factors. On the other hand, (SERNAC, 2019) reports that the main reason why
consumers claim about the e-commerce in the retail sector in Chile is related to the
breach of purchasing terms, delivery delays and bad quality service (UNAB, 2019).
Besides, the transport and distribution centre of the Andres Bello University, reveals
a poor existence of distribution services and lack of specialised knowledge about the
tools that can support e-commerce such as data analytics, big data and geo-
referenced systems (UNAB, 2019).
Another challenge that the e-commerce in Chile needs to face is related to data
protection. According to a SERNAC’s study, during 2015, 29% of the retail companies
that participated in the study do not inform the consumers anything about personal
data consent (SERNAC, 2015).
There is an external factor that could affect Chilean e-commerce. The Santiago
Chamber of Commerce reveals the potential arrival of Amazon.com to Chile (Santiago
Chamber of Commerce, 2016). The fact that Amazon.com is considering Chile as a
new location for one of its distribution centres is motivating the existing companies to
11
invest in logistics and IT (UNAB, 2019) in order to improve their shortcomings in this
area.
Regarding opportunities in the Chilean e-commerce, there is an opportunity

related to the mobile connectivity. As shown in Figure 1, the share of online shopping
made using mobile within the total e-commerce sales has been increasing in the last
seven years, reaching 25% during the year 2018 (Lever, 2019).
% Mobile over e-commerce sales (Chile)

30%
25%
25%
20% 17%
16%
15%
10%
10%
5%
5%
0% 1%
0%
2012 2013 2014 2015 2016 2017 2018
Figure 1: Share of online shopping made using mobile within the total e-commerce sales in Chile
Made by the author based in (Lever, 2019)
Another opportunity is related to the preferences of Chilean when they buy in the
retail market. An important business daily newspaper in Chile revealed that “74% of
the Chilean consumers increased their online purchasing during 2017” (Estrategia,
2018).
2.4 Customer relationship - Customer behaviour and

expectations
Evidence suggests a positive relation between having a good experience

buying online and buying again on internet (Bridges & Florsheim, 2008). Furthermore,
good online purchase experiences in the present could be related to good online
customer service experience in the past. (Klaus, 2013) identifies a group of functional
and psychological variables that need to be considered when giving an effective
online customer service. Regarding to functional aspects, these are related to the
quality of information that the website provides, how friendly it is, and the
12
communication smoothness. On the other hand, some of the psychological factors

are the level of trust that the website can build and the feeling of buying something
cheaper.
Even though Klaus gives a framework about how an online customer services has
to be, there is another important aspect related to the customers behaviour. According
to (Lever, 2018), even though e-commerce is experiencing an exponential growth
(see Figure 2), only 5% of total retail sales in Chile were made on internet in 2017
which is a low percentage if we compare it against the UK’s figure, which was 15.2%
in January 2017 (Statista(a), 2019). However, apparently this is not a problem related
to lack of presence of consumers on internet. For example, given that Chilean
consumers are users of social media, retailers are engaging them through these
platforms (Bianchi & Andrews, 2018). Then, why are Chilean consumers not willing
to buy online? what are they preferences? These questions are considered in order
to formulate the research questions
E-Commercepresented in Section
Sales in Chile (MMUS$)1.1.
5200
4000
3074
2480
2036
1592
1275
1066
730
447 514
294 353
72 94 203
15 24 36 48
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Figure 2: E-Commerce sales in Chile (MMUSD)
Source: Made by the author based on Commerce Chamber of Santiago (Lever, 2018)
A recent research reveals that there are some variables that affect the probability
of buying online in the Chilean industry (Salazar, et al., 2018). The variables affecting
positively to this probability are: Access to credit card, Educational level, Ability of
using Internet, Income, and Age. On the other hand, variables affecting negatively to
the probability of buying online are the interaction between Gender and Past
Experience, specifically women who had a bad experience giving personal details on
internet.
13
Although the variable “Access to credit card” is important to be considered, there

are some considerations to take into account. According to the main regulatory
organism of banks and financial institutions in Chile (SBIF, 2019) there is an important
offer of debit cards in Chile that the research did not contemplate (Salazar, et al.,
2018), which is shown in the Figure 3. For instance, there is a popular Chilean debit
card called “Cuenta Rut” (CNN Chile, 2019) which allows people to buy online in most
of the markets. The only condition to meet is to be Chilean.
Number of valid Credit and Debit Card with transactions in Chile

30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Number of Debit Card Number of Credit Card Total Linear (Total)
Figure 3: Number of valid and active credit and debit cards with transactions in Chile.
Source: Made by the author based on SBIF report.
It is noteworthy that Salazar’s study did not evaluate the significance of aspects
such as delivery conditions and reliability on the retail Chilean companies. Regarding
the second aspect, it would be interesting to know whether the last data breach
occurred in July 2018, which affected 14,000 Chilean credit cards (The Santiago
Times, 2018), affected the trust feeling of consumers when they decide to buy online.
In short, are there more factors that could impact on the customer shopping behaviour
in the Chilean online retail sector? The answer to this question is one of the main
objectives of this study and will be addressed in Section IV.
(Kim & Stoel, 2005) suggest that previous shopping experiences influence
expectations about online shopping. Their study was based on the expectancy value
model (Fishbein & Ajzen, 1975), which proposes that expectations and belief affect
the behaviour. Therefore, (Kim & Stoel, 2005) considers this model for online
14
customer service specifically, and suggests that the attitude toward online customer
service depends on the beliefs and expectation about online customer service which,
at the same time, can be affected by previous service experiences. In short, “the more
favourable attitudes toward online customer service, the more likely one is willing to
purchase online” (Kim & Stoel, 2005).
Even though (Kim & Stoel, 2005) give a good approach about how the
expectations affect the online purchase intent, their analysis is focused on customer
service only. However, they do not analyse how expectations can affect e-commerce
as a whole.
15
III. Methodology
3.1 Research philosophy and research approach
This research used a pragmatism philosophy. The researcher considered

quantitative methods that suits the research questions best (Saunders, et al., 2016).
The research approach was abductive. This is based on the fact that the
researcher collected primary data with the purpose of comparing experiences and
considered existing information when was convenient for the study (Saunders, et al.,
2016).
3.2 Research design: secondary sources
This research used quantitative methods only. Secondary data was focused on
two Chilean surveys which are of public domain:
• the National Socio-Economic Characterisation survey (CASEN), and
• the "Using and Accessing to Internet” survey conducted by the Chilean
Undersecretary of Telecommunication (SUBTEL).
Both surveys offer reliable official data, validated by competent government agencies,
and provide valuable information in connection with the research questions.
Primary data was collected with the purpose of evaluating comparative

experiences buying online from Chile versus in-store in Chile, and buying online from
Chile versus from abroad. This data was collected through an online survey that was
designed and conducted by the researcher. The questionnaire was launched in
Spanish and it was translated by the researcher for the purpose of this study2. The
questionnaire flow chart and the list of questions can be seen in Appendixes 6.4 and
6.5 correspondingly.
3.2.1 CASEN: Description survey

One of the secondary sources for this study is the National Socio-Economic
Characterisation survey (CASEN, from its name in Spanish). This survey was
2
The questionnaire could be found in the following link https://forms.gle/CHNvdr9pPfg1gjTT8
16
designed by the Social Development Ministry of Chile (MDS) and it was conducted by
the Statistics National Institute of Chile (INE). It is held every two years, with around
200,000 respondents each year (MDS, 2018).
Regarding sampling methods, CASEN uses a probabilistic sample. This sample

is stratified by clusters and in multiple-stages. In order to estimate the population, the
poll uses an expansion factor which is calculated considering the number of homes
in the geographical sections and the forecast population made by the INE (MDS,
2018).
This research used the last four CASEN available from 2011 until 2017. In 2017,
CASEN considered 216,439 people. Using the expansion factor, they represent
17,807,414. From that group, the survey reveals that there are 13,7 millions of adults,
which is the group to be considered in this analysis.
CASEN considers about 800 variables. The variables considered in this analysis
are:
• Age: Also used to filter the group of adults.
• Possession of credit/debit card: Valid credit and debit card issued by a
bank or any other organism. This variable is considered based on the
discussion in the literature review, Section 2.4, where (Salazar, et al.,
2018) refers that the access to credit/debit card plays an important role in
the e-commerce.
• Internet access: (Dutta, 1997) and (Oxley, 2001) suggest that having
internet is one of the most important factors for the e-commerce demand
growth.
• Internet use: Set of questions related to the purpose of using internet.
• E-commerce use: Question related to use internet for e-commerce.
Appendix 6.1 presents a detailed description of the variables used in the analysis.
17
3.2.2 SUBTEL: Description survey
Another secondary source used in this study is the “Ninth Access and Internet
Usage 2017” poll. This survey is conducted with the purpose of getting information
about usage trends and adoption of information technologies over the country
(Brujula, 2017). During 2017, SUBTEL interviewed 3,600 participants over 15 years
old. The sample was probabilistic and stratified by geographical sections. An
expansion factor was estimated based on the population census of 2011 and
population forecasts estimated by INE (Brujula, 2017). Using this expansion factor,
the estimated population is 14,445,529 people over 15 years old.
The survey considers 490 variables, from which the selected ones are:
• General online shopping: Products or services that individuals have bought
online in the last 12 months.
• Retail online shopping. Subgroup of the “General online shopping”
variable. This new variable considers products which are commonly sold
online in the retail sector.
• Age: This refers to the age of the participants.
• Internet use frequency: Frequency of internet use in the last 12 months.
• Internet purpose: Reasons why the participant has used internet for
personal use in the last year.
• No online shopping: Reasons why the participant has not used internet in
the last year.
• Online safety and privacy: Problems that the participants have had buying
online in the last three months related to data protection.
Appendix 6.2 presents a detailed description of the variables used in the analysis.
3.3 Research design: primary sources
Primary source was collected through an online survey. It was held in order to
know different experiences of buying online from Chile versus both buying online
from another country and buying in-store in Chile.
18
3.3.1 Participants profile
The participants should meet all of the following characteristics:

• Having at least one experience buying online from Chile: it is important
in order to get information related to the Chilean e-commerce.
• Having at least one experience buying online from another country: it is
important in order to have a comparative experience with another country.
• Having at least one experience buying in-store in Chile: it is important in
order to have a comparative experience within the Chilean market.
• Being between 18 and 45 years old. This is based on the results of the
“Using and Accessing to Internet” survey, which shows that this group of
people is more active in using the internet 3 (SUBTEL, 2017).
3.3.2 Sampling method
Considering the characteristics of the participants required in the primary source,

it was not possible to get a sample frame for this study. Therefore, non-probability
sampling techniques were used in this research. The researcher evaluated three
sampling methods suitable for the research questions and availability of resources.
The first one was haphazard sampling techniques, which according to (Saunders, et
al., 2016) would allow to recruit the participants easily and quickly. However, this
technique is lacking credibility and it could involve a high risk of bias (Saunders, et
al., 2016). On the other hand, two Volunteer Sampling techniques were selected by
the researcher, Snowball Sampling and Self-Selection Sampling. According to
(Saunders, et al., 2016), the former technique allows to recruit specific people with
similar characteristics. The latter technique allows to recruit people with “strong
feeling or opinions about the research question” (Saunders, et al., 2016). In this study,
it was essential to recruit people who have bought online from both Chile and another
country, which was a hard characteristic to identify. Nevertheless, this kind of
respondent were contacted through other members of the study and invitation through
emails and social media. Thus, the survey was launched on Facebook using public
posts in different groups of people where the participants could be self-selected
3
According to SUBTEL, 22.3% of people between 46- and 60-year-old living in Chile have never
used internet. The percentage is 49% in the group of people older than 60 years old. (SUBTEL, 2017)
19
according to the instructions described on the post and they also could share the
posts among their own contacts. Besides, the survey considered a last optional
question where the respondents could refer other qualified participants that could be
interested in participating in the study (see Appendix 6.4).
Saunders suggests considering a minimum of 30 subjects for non-probability

sampling (Saunders, et al., 2016). The research recruited 180 participants who meet
the criterion described in Section 3.3.1.
3.3.3 Techniques and procedures
This study used statistical techniques in order to analyse the primary data. The
questionnaire was self-completed and was distributed through social media and
emails described in Section 3.3.2. In order to mitigate the lower response rate that
online surveys commonly have (Saunders, et al., 2016), the questions were easy to
answer using closed-ended questions and categorical answers. The questionnaire
flow chart can be found in Appendix 6.4.
The survey was made in Google docs, using the forms available for creating a
survey. The survey was available for two weeks in the following link
https://forms.gle/CHNvdr9pPfg1gjTT8, which was distributed on Facebook and
emails. The publication was posted at least twice in different Facebook groups.
The questionnaire was made based on Chilean e-commerce aspects discussed

in Sections 2.2 - 2.4 and the 6Cs that an Online Value Proposition (OVP) has to
consider in order to be successful. According to (Chaffey, 2019), online value
proposition should have distinctive elements from both offline channels and
competitors. Thus, a successful OVP have to consider aspects such as:
1. Content: The website has to offer different information compared to the one
that the offline channels offer, such as: more information about products
usage, example applications and interactive content.
2. Customisation: Personalised messages that can be found in the website
according customer preferences.
20
3. Community: Customers’ opinions and perceptions about brands and

products which can be found in the online channels.
4. Convenience: Availability to buy products at any time (24x7)
5. Choice: Online channels have to offer more variety of products than other
distribution channels.
6. Cost Reduction: Online channels have to offer cheaper products than offline
ones.
The questionnaire consisted of 37 questions. The questions were classified in:
• demographics,
• comparative experience between e-commerce abroad versus e-
commerce in Chile,
• comparative experience between e-commerce in Chile and in-store
purchasing experience in Chile, and
• general information about e-commerce in Chile.
The variables were coded in order to facilitate the analysis (see Appendix 6.5).
The questions referring to comparative experiences can be distinguished according
to the following criterion:
• ABCL: Comparison between e-commerce from abroad (AB) and e-

commerce from Chile (CL),
• ONST: Comparison between purchasing online from Chile (ON) and
purchasing in-store (ST).
The answers to these two groups of questions considered 5-point Likert scales,
as shown in Appendix 6.11.
The researcher used quantitative methods in order to analyse and show the
results of the data collected. The descriptive analysis was made in MS Excel. The
regression model selected by the author was the “Logistic Regression Model”. As the
research question is associated to a binary variable, the selected regression model
21
allowed getting the estimated probability of success related to meeting expectation of

the e-commerce in Chile (Anderson, et al., 2014). Details of the regression analysis
will be discussed in Section 4.3. The logistic regression analyses were made using
the statistical software “R”. The R code for the data pre-processing, stepwise
regression algorithm, further variable selection procedures based on individual
statistical significance tests and likelihood ratio tests, and the computation of
predicted probabilities is in Appendix 6.8.
22
IV. Findings, analysis and discussions of the results
4.1 CASEN
E-commerce in Chile presents a thriving scenario as shown in the Figure 4. The

analysis reveals that the percentage of adults using internet has increasing 24
percentage points over the last 6 years reaching 69% of the total adult population in
Chile. Besides, during 2017, 29% of the total adult population in Chile used e-
commerce at least once during the last 12 months, which presents an increment of
17% in the last 6 years.
E-Commerce in Chile
(% of adults)
80%
73%
70% 69%
66%
Total population
60%
50%
45%
42%
40%
31%
30% 29%
20%
12%
10%
2011 2013 2015 2017
Have debit and/or credit card Use internet Able to use e-commerce Use e-commerce
Figure 4: E-Commerce in Chile 2011-2017, percentage of adults.

Total population of adults on the left axis.
Source: Made by the author based on bi-annual CASEN survey
Another important factor considered is the possession of credit/debit card.

CASEN 2017 reveals that 73% of the total Chilean adult population has credit/debit
card and this percentage has increasing the last six years in 31%.
It is well known that not all the adult’s population in Chile is able to use e-
commerce. As seen in the literature review, the internet access and the possession
of a valid debit or credit card play an important role in the e-commerce use. Thus, in
the CASEN is possible to distinguish a group of people able to use e-commerce
defined by the researcher as follows:
• people using e-commerce, or
• people not using e-commerce but using internet and having credit/debit
card, or
23
• people not using e-commerce, not using internet but having access to
internet connection and having credit/debit card.
The group of adults able to use e-commerce presents a rapid increase since
2011.This group reached 66% in 2017 and its increment was 34% over the last six
years. Considering the group of people able to use e-commerce (66%) and the group
of people who actually use e-commerce (29%), the analysis reveals that for every
person using e-commerce in Chile there are 1.2 additional individuals that could be
using e-commerce.
Figure 4 reveals an important percentage of adults in Chile who do not have

credit/debit card but use e-commerce though. During 2017, this percentage was 28%
in 2011 and it has been decreasing, reaching 13% in 2017. This could be caused
because of the level of access to banking services has been improved and/or because
of the rapid increment of e-commerce in Chile.
On the other hand, CASEN 2017 can be analysed multidimensionally. The

following figure shows in detail the CASEN 2017.
Var %
2017 -2011
CASEN 2017
Total adult
population in Chile 9%
13,660,946
Var %
2017-2011
Not possession of Possession of
credit/debit card credit/debit card
87.9%
3,672,648 9,988,298
Var %
2017-2011
Not using Internet Using Internet
148.7%
2,092,784 7,895,514
Var %
2017-2011
Not using e- Using e-
commerce commerce
224.4%
4,399,850 3,495,664
Figure 5: CASEN 2017

Source: Made by the author based on (MDS, 2018)
24
The survey reveals that the total adult population has increasing in 9% over the
last six years. Figure 5 shows that almost 10 million of adults in Chile has a debit or
credit card which represent 73% of the total adult Chilean population. The possession
of credit/debit card has been increasing over the last six years too, presenting a
variation of 87.9% with respect to 2011. The variable Internet use presents an
important increment. Figure 5 reveals that 7.9 million of adults with debit/credit card
have used internet in the last year and 44% of them (3,5 million) have accessed to
internet to do e-commerce. In comparison with 2011, these sub-groups present an
important increment of 148.7% and 224.4% respectively. Although the increment of
the adults in Chile with credit card using the internet for e-commerce has rapidly
increased, there is an important number of adults in Chile who is able to use e-
commerce, but they do not make commercial transactions. These are 4,4 million
people, which represents 56% of adults with credit/debit card and using the internet.
More details about CASEN 2011, 2013 and 2015 are presented in Appendix 6.3.
4.2 SUBTEL: Ninth access and use of internet 2017
The SUBTEL survey does not include any variable about online shopping in the
retail sector. The closest information provided by the survey is about types of products
and services which were bought in the last 12 months. That is why, a subgroup of the
variable “General online shopping” was created considering the products which are
usually offered in the retail sector. This subgroup corresponds to the variable “Retail
online shopping”. The Appendix 6.2 presents more details about the variables used
in the analysis.
In addition, the survey does not present any variable related to know if the
participants have bought online or not. Therefore, the variables “General online
shopping” and “Retail online shopping” were combined together (see Appendix 6.2)
in order to create a single variable defined as “Online shopping experience” indicating
whether a respondent, in the last 12 months,
25
• had no online shopping experience,

• had an online shopping experience but not in the retail sector, or
• had an online shopping experience including the retail sector.
and their distribution according to their relationship with online shopping is shown in
Figure 6.
Online shopping experience

(all ages)
No online shopping
23%
Online shopping, no retail
Online shopping, retail
9%
68%
Figure 6: Online Shopping experience

Source: Made by the author based on (SUBTEL, 2017)
Among all those above 15 years old, 23% bought some item that is assumed to
be offered in the retail sector using the Internet (see description of variable “Retail
online shopping” in Appendix 6.2). Given that these experiences could be too affected
by factors that are out of the domain of the decision makers in the retail industry, the
study considered the age of the respondents as a proxy variable to take into account
these factors. Figure 7 shows the distribution by age and, within each bin, the
distributions of online shopping experience are presented. Dark green percentages
indicate the proportion of people who bought online items offered in the retail sector
within each age interval.
26
SUBTEL respondents by age and

online shopping experience
5,000,000
4,000,000
36%
3,000,000
25% 16% 7%
2,000,000
1,000,000
19%
-
1 Under 18 2 18 to 32 3 33 to 45 4 46 to 60 5 More than 60
No online shopping Online shopping, no retail Online shopping, retail
Figure 7: Online Shopping experience by age

Based on Figure 7, the ages to be considered in this study are those belonging
to the intervals where the percentage of online experience in the retail sector is higher
than the overall one of 23%. Thus, respondents who are between 18 and 45 years
old will be considered from now on because the corresponding percentages for their
intervals are 36 and 25%, representing 8,278,015 people.
As shown in Figure 8, 95% of the people use internet at least once per day. As
expected, Figure 9 shows that this group buys online much more than other less
frequent users. In fact, 33% of this group buys online including transactions
associated with items that are offered in the retail sector, whereas just 15% of those
that use internet at least once per week make the same kind of transactions (see
Figure 9). This suggests that the internet use frequency affects the probability of
buying online.
27
Internet use frequency
3%3% At least once per day
At least once per week, but not

erver day
At least once per month, but
not every week
Less than once per month
Never
95%
Figure 8: Internet use frequency
Online shopping experience by internet use

frequency
15% 4%
33% 10%
11%
96% 100% 100%
75%
56%
At least once per At least once per At least once per Less than once Never
day week, but not month, but not per month
erver day every week
No online shopping Online shopping, no retail Online shopping, retail
Figure 9: Online Shopping experience by internet use frequency

From those who declared to use the Internet in the last 12 months, 60% did it to
get information about prices, technical details of some products or services, and
stores locations; and/or to buy online. This suggests that 40% of the people are not
even interested in finding out more information online related to their purchases
(assuming that they all –or almost all- have internet access somewhere). However,
within the 60%, 28% of the people (almost 1.4 million people) use internet to find
information about products and/or services but not to buy online (See Figure 10). This
can be seen as a great opportunity for retailers because this group can be considered
close to make the decision to buy online.
28
Internet users for getting information by online

shopping experience
Get info, no online shopping
28% Get info and/or online shopping

no retail
Get info and/or online shopping

53% retail
19%
Figure 10: Internet users getting information by online shopping experience

Among the reasons why these people do not buy online despite the fact that they
use internet to find information about products and/or services, the most frequent
reason is that they are not interested (40%). They also prefer to negotiate and/or they
do not have credit card (29 and 20% correspondingly). Less frequent options are
related to not feeling safe when giving credit/debit card details or personal details.
Therefore, safety reasons seem to be not the main factor for not buying online. In fact,
the percentages shown in Figure 11 remain almost the same when the population of
analysis is changed from those who use internet to look for information about products
and/or services and do not buy online to those who in general do not buy online
without making any further filter.
29
Reasons why not to buy online of those who use

internet to find information about products and services
40%
29%
20%
13% 12%
10%
03% 02%
I'm not Prefer to I don't have I don't feel I don't feel I don't feel Lack of Other
interested negotiate credit card safe giving safe giving my safe about knowledge
personal credit/debit guarantees,
details (not card details delivery and
about return policies
credit/debit
card)
Figure 11: Why Internet users are not buying online

The conclusions drawn from the previous figure are reinforced by the analysis of
the type of problems that people have had when using the Internet. The analysis
based on Figure 12 suggests that problems with using the Internet in the last 3 months
do not significantly affect the customer’s purchasing decision. Among those who did
not buy online in the last 12 months, only 1% suffered financial losses because of
fraudulent payments with credit/debit card on internet and the same percentage
corresponds to the same group but among those who did buy online. As shown in
Figure 12, all the percentages are pretty similar when comparing between those who
buy online against those who do not, meaning that the online purchasing decision is
hardly affected by previous bad experience using the Internet. It is important to note
that this conclusion is about the effect of bad experiences using the Internet on the
online purchasing decision and not about bad experiences buying online necessarily.
30
Problems when using the Internet 84%

83%
Among those who did not buy online Among those who did buy online
9% 12%
3% 4% 1% 1% 1% 0%
Virus attack Bad use of personal Financial losses because Other None
information of fraudulent payments
with credit/debit card
Figure 12: Problems when using the Internet

4.3 Primary source: expectations survey
A primary data was collected in order to have a comparative experience of e-

commerce. The survey was focused on the factors that influence in meeting
expectations of e-commerce in Chile. There was a total of 270 respondents from
which 180 met the criterion to go through the whole survey (See Appendix 6.4). This
study refers as respondents to the participants who met the criterion only.
4.3.1 Selected descriptive statistics
The demographics variables show that 67% of the respondents was female,
14% not Chilean, and the distribution by income level is as shown in Figure 13.
Income level
(Chilean pesos/month)
Less than 500,000
48% 15% 501,000 - 1,000,000
10% 1,000,001 - 2,500,000

More than 2,500,000
22% 5% I prefer not to say
Figure 13: Distribution of respondents by income level, n=180

Source: Made by author
31
As will be seen later, the final logistic regression model to be analysed ended
up with four predictors in it, for which descriptive statistics are discussed next. For
each one of these variables, the distribution of respondents across different answers
is represented by blue bars. In addition, within each answer category, the proportion
of respondents who declared that the e-commerce in Chile meets their expectations
is represented by red bars. Therefore, it is possible to see the association between
each variable and the proportion of meeting expectations having in mind the sample
size for each answer category.
The variable “Cheaper products online than in store” which compare both e-
commerce abroad and in Chile, shows that as the assessment of Chilean e-
commerce gets worse, the proportion of meeting expectations decreases (Orange
bar). If numbers from one to five are assigned to the answer categories as they appear
in Figure 14 from left to right, then it is expected that the sign of the coefficient for this
variable resulting from the logistic regression model is negative, which indeed will be
confirmed later. Those who believe that the difference between prices online versus
in-store is wider abroad than in Chile concentrate 38% of the observations, of which
only 17% meet their expectations about e-commerce in Chile. These expectations are
much more frequently met at the neutral level “Same as in Chile”, where 57% declared
to meet their expectations. If the categories “Much worse than in Chile” and
“Somewhat worse than in Chile” are considered together, they represent just 7% of
the observations, so their effect is not interpreted here although it can be seen that is
still very clear and consistent.
E-commerce abroad v/s Chile - Cheaper products online than in-store
100%
80%
57%
30% 39% 38%
26% 17%
1% 6%
Much worse than in Somewhat worse than Same as in Chile Somewhat better than Much better than in
Chile in Chile in Chile Chile
Distribution (Overall) Meet expectations about e-commerce in Chile
Figure 14: Assessment of variable: Cheaper products online than in-store.
32
The variable “Ability to check reviews online” shows that as the assessment
of online shopping versus in-store gets better, the proportion of meeting expectations
increases. If numbers from one to five are assigned to the answer categories as they
appear in Figure 15 from left to right, then it is expected that the sign of the coefficient
for this variable resulting from the logistic regression model is positive, which indeed
will be the case. Those who believe that reviews and recommendations add value to
online shopping versus in-store represent 43% of the observations, of which 53%
meet their expectations about e-commerce in Chile. In relative terms and considering
the great concentration of observations in this category answer, this variable is one
of the key factors affecting the probability of meeting expectations.
Advantage E-commerce from Chile over the store: Ability to check

reviews online
53%
43%
34%
30% 31%
25%
16%
10% 11%
6%
Strongly disagree Somewhat disagree Neither agree nor Somewhat agree Strongly agree
disagree
Figure 15: Assessment of variable: Ability to check reviews online.
The variable “Variety of products” shows that as the assessment of Chilean e-

commerce versus e-commerce abroad gets worse, the proportion of meeting
expectations decreases. If numbers from one to five are assigned to the answer
categories as they appear in Figure 16 from left to right, then it is expected that the
sign of the coefficient for this variable resulting from the logistic regression model is
negative, which indeed will be confirmed later. Those who believe that the variety of
products offered abroad is much larger than in Chile concentrate 68% of the
observations, of which only 25% meet their expectations about e-commerce in Chile.
These expectations are much more frequently met at the neutral level “Same as in
Chile”, where 83% declared to meet their expectations. If the categories “Much worse
33
than in Chile” and “Somewhat worse than in Chile” are considered together, they
represent just 2% of the observations, so their effect is not interpreted here.
E-commerce abroad v/s Chile - Variety of products
83%
64% 68%
50% 50%
20% 25%
10%
1% 1%
Figure 16: Assessment of variable: Variety of products.

The variable “Satisfaction with the delivery process” shows a similar scenario
compared to the one of the previous variable and therefore its analysis is omitted (see
Figure 17).
E-commerce abroad v/s Chile - Satisfaction with delivery process

81%
67%
57% 60%
50%
25%
17%
12%
1% 4%
Figure 17: Assessment of variable: Satisfaction with delivery process.

34
4.3.2 The logistic regression model
The logistic regression is the most used type of regression when the response
variable is dichotomous (Maheshwari, 2014). Therefore, it is the one used to analyse
the expectation of customers related to online shopping in the retail sector in Chile.
The function to be used estimates the parameters of a multiple linear regression
model defined as:
𝑙𝑜𝑔𝑖𝑡(𝐸[𝑌𝑖 |𝑥1,𝑖 , 𝑥2,𝑖 , … , 𝑥𝑝,𝑖 ]) = 𝛽0 + 𝛽1 𝑥1,𝑖 + 𝛽2 𝑥2,𝑖 + ⋯ + 𝛽𝑝 𝑥𝑝,𝑖 , 𝑖 = 1,2, … , 𝑛,

where 𝑛 is the number of observations and 𝑝 the number of predictors (Anderson, et
al., 2014).
The logit function is defined as follows:

𝑝
𝑙𝑜𝑔𝑖𝑡(𝑝) = 𝑙𝑜𝑔 ( ),
1−𝑝
𝑝
where (1−𝑝) is known as the odds of the event defined as success, in this case, the
odds of e-commerce meeting the expectations of customers in the Chilean retail

market. Comparing two odds by dividing one of them over the other is called an “odds
ratio” (Anderson, et al., 2014), i.e.,
𝑝
(1 −1𝑝 )
1
Odds ratio = 𝑝
(1 −2𝑝 )
2
4.3.3 Types of variables: the problem and its solution
The response variable is binary, taking the value 1 when the 𝑖-th respondent
declares that its expectations are met by the e-commerce in Chile or zero otherwise.
In general, the logistic regression allows any kind of predictors, also known as
independent variables or covariates (Anderson, et al., 2014), but the survey considers
closed questions only, where the respondents can choose among a limited number
of answers, and then all the predictors are categorical variables, with two or more
categories. However, when fitting a logistic model with all the predictors available, the
model cannot be fitted because there are too many possible combinations of
35
categories, producing cells (or combinations) where only one value for the response
variable exists, namely either zero or one. This problem creates huge standard errors
and p-values, making the coefficients statistically not significant at any usual
significance level 𝛼 (0.01, 0.05, or even 0.10).
Given that there are 11 questions about comparing the e-commerce from
Chile against the one abroad and 9 questions about comparing the e-commerce in
Chile versus in-store shopping, considering these variables as categorical would
imply to include 80 dummy variables in the model. The reason for this is that the
dummy coding produces five dummy variables (one for each one of the five categories
of these ordinal predictors) from which one dummy variable must be taken apart from
the model to be considered as baseline or base category. Therefore, the 80 dummy
variables is the result of four variables for each one of the 20 predictors. In addition,
there are some other categorical variables in the survey, increasing the number of
coefficients to be estimated and elevating the complexity of the analysis and
interpretations even further.
The solution to this problem was based on the fact that these 20 predictors
are ordinal, so a simple scoring system was used. For these 20 predictors, discrete
values from one to five were used to represent their categories. These allowed the
model fitting process to provide a simpler outcome, getting a still large but reasonable
number of coefficients to be analysed and interpreted.
4.3.4 Variable selection and the final logistic regression model
The survey provides 27 predictors to be used, from which seven are

categorical and 20 are treated as numerical. They all were used in the first stage of
the analysis. Given that the model includes all the predictors, it will be referred to as
the full model. In order to analyse whether a singular coefficient makes a significant
contribution to the model, an individual significant test must be performed. The null
and alternative hypotheses are:
𝐻0 : 𝛽𝑗 = 0 versus 𝐻1 : 𝛽𝑗 ≠ 0,
for any 𝛽𝑗 with 𝑗 = 0,1, … , 𝑝. The test statistic is defined as follows:
36
𝛽̂𝑗
𝑧= ,
𝑠𝑒(𝛽̂𝑗 )
where 𝛽̂𝑗 is the parameter estimate of 𝛽𝑗 , and 𝑠𝑒(𝛽̂𝑗 ) is its standard error. Therefore,
the p-value is computed as 2𝑃(𝑍 > |𝑧|). As a general rule, if the p-value is smaller
than the significance level, then there is enough statistical evidence to reject the null
hypothesis and therefore the coefficient is statistically significant, i.e., it makes a
significant contribution to explain the variation of the response variable of the model.
On the other hand, if the p-value is greater than the significance level, then there is
not enough statistical evidence to reject the null hypothesis and therefore the
coefficient is statistically not significant, i.e., it does not make a significant contribution
to explain the variation of the response variable of the model (Anderson, et al., 2014).
As will be explained later, when it is not possible to conduct a test on only one
coefficient because it is part of a group of coefficients belonging to the same variable,
as it is the case for those associated with education, income, channel and last
purchase, then another significance test should be used, from which the likelihood-
ratio test will be presented and performed later on in this section.
As seen in the table of Appendix 6.9, most of the coefficients for the full model
are statistically not significant at any usual significance level 𝛼 (0.01, 0.05, or 0.1).
Therefore, a method for variable selection was required.
In order to choose the variables to be dropped, the first approach was to use
the variable selection method called backward elimination. This method starts from a
model with every predictor available, then, in each step of the algorithm, it chooses a
variable to remove it from the model in such a way that the model from the previous
step is hardly affected. If dropping a variable from the model implies a statistically
significant loss in some criterion, then the algorithm stops. Another method goes in
the opposite direction, adding rather than dropping variables, and is “forward
elimination”. Forward and backward elimination can also be combined in the variable
selection procedure (“both”) (Anderson, et al., 2014). Finally, backward elimination
was chosen because it provided the same result as the “both” options.
37
Table 1 shows the results after using the stepwise regression for variable
selection that was described above. The number of coefficients was reduced
dramatically from 37 for the “full” model to 14. Using a stepwise procedure guarantees
that variable elimination is performed without significantly affecting the quality of the
model when comparing it against the full model. However, several coefficients were
still not statistically significant for the model.
Table 1: Results of the logistic regression model after using backward elimination stepwise
regression. Dependent variable: EXPECT_ONCL
Estimate Std. Error z value Pr(>|z|)

(Intercept) -11.453 1369.186 -0.008 0.993
ABCL_DEL -0.404 0.268 -1.504 0.133
ABCL_CONT -0.531 0.296 -1.796 0.072 .
ABCL_VARI -0.903 0.371 -2.435 0.015 *
ABCL_COMM 0.962 0.332 2.898 0.004 **
ABCL_CONV -0.505 0.278 -1.815 0.070 .
ABCL_COSTS -0.591 0.255 -2.319 0.020 *
ONST_COMM 0.473 0.200 2.370 0.018 *
ONST_CUSTO 0.331 0.201 1.643 0.100
ONST_CUSTSS -0.266 0.166 -1.599 0.110
LASTPURCH_CL1 19.574 1369.185 0.014 0.989
LASTPURCH_CL2 16.930 1369.184 0.012 0.990
LASTPURCH_CL3 17.576 1369.184 0.013 0.990
LASTPURCH_CL4 16.504 1369.184 0.012 0.990
Those coefficients associated with the variable “last purchase” were all not
significant. Therefore, this variable was dropped from the model and a likelihood-ratio
test was carried out in order to analyse whether dropping this variable produced a
significant deterioration in the likelihood of the model versus the full model (Anderson,
et al., 2014).
In this particular application, if we define 𝚯 as a vector with all those

coefficients that are in the full model but not in the model after executing the
backwards elimination stepwise regression, and also after dropping “last purchase”,
then the null and alternative hypotheses are
𝐻0 : 𝚯 = 𝟎
and
𝐻1 : At least one coefficient of 𝚯 is not 0,
38
and the likelihood-ratio statistic was

ℓ(𝑀2 ) −85.922
𝐿𝑅 = −2 ln ( ) = −2 ln ( ) = 26.768,
ℓ(𝑀1 ) −72.538
where ℓ(𝑀1 ) is the log-likelihood of the full model (with all the predictors), and ℓ(𝑀2 )
is the log-likelihood of the model after using backwards elimination and dropping “last
purchase”.
2
The test statistic follows a chi-squared distribution with 𝑑𝑓 degrees of freedom (Χ 𝑑𝑓 ),
which are calculated as the difference in the number of parameters of the two models,
in this case 27. Therefore, the p-value associated with 26.768 and 𝑑𝑓 = 27 is 0.4754.
2
More formally, 𝑃(Χ 27 > 26.768) = 0.4754. Another piece of information to conduct a
statistical test is the significance level (Anderson, et al., 2014), which is chosen by the
researcher and in this study it was set at 0.05. The statistical interpretation of the
results of this test is that, with a confidence level of 95% (or a significance level of 5%,
𝛼 = 0.05), there is not enough statistical evidence to reject 𝐻0 , then the null hypothesis
is not rejected. This means that the model with fewer variables, and therefore fewer
coefficients, does not significantly deteriorate the model with all the predictors, which
allows dropping the variables without great loss of fit.
The process of dropping the variable with the highest p-value, i.e., the one
with the smallest statistical contribution to the model, and testing whether the reduced
model was still not significantly different from the full model was executed
subsequently until a point where either all the variables were significant or dropping
an extra variable would produce a negative impact in the model when comparing it
against the full one (Anderson, et al., 2014).
As an illustration, define the penultimate model as the model that was

analysed just one step before getting the final model. The results of the penultimate
model are shown in Table 2. It shows just five variables, and one of them is clearly
not significant. This conclusion is reached based on the individual significant test
discussed before in this section, which is applied next.
39
The null and alternative hypotheses are:
𝐻0 : 𝛽𝐴𝐵𝐶𝐿_𝐶𝑂𝑀𝑀 = 0 versus 𝐻1 : 𝛽𝐴𝐵𝐶𝐿_𝐶𝑂𝑀𝑀 ≠ 0.

The test statistic is:
𝛽̂𝑗 0.439
𝑧= = = 1.569,
𝑠𝑒(𝛽̂𝑗 ) 0.280
Therefore, the p-value is computed as

2𝑃(𝑍 > |𝑧|) = 2𝑃(𝑍 > 1.569) = 2 ⋅ 0.058 = 0.1167.
This p-value matches exactly the one shown in Table 2 for variable ABCL_COMM.
Given that the p-value is greater than the significance level of 𝛼 = 0.05, then
there is not enough statistical evidence to reject the null hypothesis and therefore the
coefficient is statistically not significant, i.e., ABCL_COMM does not make a
significant contribution to explain the variation of the response variable of the model.
Somehow, and interestingly, this can be considered as a consistent result because
this coefficient was expected to show a negative sign, just as other ABCL type
variables do, meaning that the better the reviews and recommendations are abroad
compared to Chile, the less the customers meet their expectations about e-commerce
in Chile. However, the result shows exactly the opposite correlation because the sign
of this coefficient is actually positive, but, at the same time, it is not significant, making
its interpretation invalid or not strongly justified.
Table 2: Results of the logistic regression model before dropping the last variable to
define the final model. Dependent variable: EXPECT_ONCL. The penultimate
model.

(Intercept) 4.357 1.436 3.033 0.002 **
ABCL_DEL -0.522 0.241 -2.166 0.030 *
ABCL_VARI -0.841 0.336 -2.499 0.012 *
ABCL_COMM 0.439 0.280 1.569 0.117
ABCL_COSTS -0.799 0.223 -3.582 0.000 ***
ONST_COMM 0.636 0.175 3.624 0.000 ***
Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
40
The final model, dropping ABCL_COMM and other variables, did not produce
a great loss fit compared to the full model. In fact, the p-value of the likelihood-ratio
test when comparing the final model against the full model was 0.2402, much greater
than the significance level of 0.05, meaning that the null hypothesis “all the
coefficients that were dropped are equal to zero in the population” was not rejected.
Table 3 shows the details of the final result.
Table 3: Results of the logistic regression model with the final set of predictors. Dependent
variable: EXPECT_ONCL. The final model.

(Intercept) 4.621 1.425 3.243 0.001 **
ABCL_DEL -0.446 0.233 -1.912 0.056 .
ABCL_VARI -0.565 0.280 -2.018 0.044 *
ABCL_COSTS -0.751 0.218 -3.447 0.001 ***
ONST_COMM 0.593 0.173 3.435 0.001 ***
Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
The only variable that is not significant is associated to delivery
(ABCL_DEL). However, it was kept in the model because its p-value was just
slightly greater than 0.05.
4.3.5 Interpretation of coefficients
In order to give a sensible interpretation of each coefficient, it is necessary to

transform them. Let’s consider a logistic regression models to illustrate one way of
giving an interpretation to the coefficient associated to some predictor 𝑥1 :
𝑝
𝑙𝑜𝑔 ( ) = 𝛽0 + 𝛽1 𝑥1 (1)
1−𝑝
𝑝′
𝑙𝑜𝑔 ( ) = 𝛽0 + 𝛽1 (𝑥1 + 1) (2)
1 − 𝑝′
The only difference between these models is that 𝑥1 has been increased by
one unit in model (2) and therefore the response has changed too (Anderson, et al.,
2014). After some manipulation, it is possible to get (2)-(1) in order to see the effect
of this unit increase in 𝑥1 over the response:
41
𝑝′
(1 − 𝑝 ′ )
𝑝 = 𝑒 𝛽1 (3)
(1 − 𝑝)
The left side of (3) is usually called “odds ratio” (Anderson, et al., 2014).
Therefore, the exponential of a coefficient shows the odds ratio between the odds of
the probability of success given 𝑥1 + 1 and the odds of the probability of success given
𝑥1 . If this odds ratio is greater than one, then it means that increasing 𝑥1 by one unit,
increases the odds of the probability of success. If this odds ratio is between zero and
one (excluding the limits), then it means that increasing 𝑥1 by one unit, decreases the
odds of the probability of success (Anderson, et al., 2014).
In particular, for the results of the final model shown in Table 3, the interpretations
are:
• “Satisfaction with delivery process”: The odds ratio is 0.64 (𝑒 −0.446 ). On

average, when this variable increases by one unit while keeping the others
constant, meaning that a respondent assigns a better qualification to this
variable abroad than in Chile, then the odds of meeting the customers’
expectations about the e-commerce in Chile decrease by a factor of 0.36 (1-
0.64).
• “Variety of products” and “Cheaper products online”: The odds ratios are 0.57
(𝑒 −0.565 ) and 0.47 (𝑒 −0.751 ) correspondingly. On average, when each one of
these variables increases separately by one unit while keeping the others
constant, meaning that a respondent assigns a better qualification to the
corresponding variable abroad than in Chile, then the odds of meeting the
customers’ expectations about the e-commerce in Chile decrease by a factor
of 0.43 (1-0.57) and 0.53 (1-0.47) correspondingly.
• “Ability to check reviews online”: The odds ratio is 1.81 (𝑒 0.593). On average,
when this variable increases by one unit while keeping the others constant,
meaning that a respondent assigns a better qualification to this variable online
than in-store (both in Chile), then the odds of meeting the customers’
expectations about the e-commerce in Chile increase by a factor of 0.81 (1.81-
1).
42
In general, it can be seen from the interpretations that those coefficients with
negative (positive) sign indicate a negative (positive) correlation between the variable
and the probability of meeting the customers’ expectations about the e-commerce in
Chile. Furthermore, all of the signs are consistent with those that a researcher could
expect a priori based on reasoning.
The main drawback of interpretations based on the odds ratio is that it does
not allow computing and comparing probabilities between different customers’
profiles, because they just compare different odds, not probabilities (Anderson, et al.,
2014). However, it is possible to compute predicted probabilities for different
customers’ profiles using the regression model with its estimated coefficients. This
will be discussed and analysed in the next section.
4.3.6 Predicted probabilities for selected customers’ profiles
Let’s define the predicted probability for a given set of values of the predictors
defining the 𝑖-th customer’s profile as 𝑝̂𝑖 , and the estimated coefficients resulting from
the final model as 𝛽̂𝑗 for 𝑗 = 0,1,2, … , 𝑝. Therefore, the predicted probability for a given
set of values of the predictors is computed as follows:
̂ +𝛽
𝛽 ̂ 𝑥 +𝛽̂ 𝑥 +⋯+𝛽
̂ 𝑝𝑥
𝑒 0 1 1,𝑖 2 2,𝑖 𝑝,𝑖
𝑝̂𝑖 = ̂ +𝛽
𝛽 ̂ 𝑥 +𝛽̂ 𝑥 +⋯+𝛽
̂ 𝑝𝑥 .
1+𝑒 0 1 1,𝑖 2 2,𝑖 𝑝,𝑖
A set of different customers’ profiles is listed in this section together with their
corresponding predicted probabilities, so comparisons among them can be easily
obtained in order to build a more general picture of the effects of the predictors on the
response variable according to the final model.
Table 4 shows three groups of customers’ profiles:

1. Profiles A-E: Customers assigning the same qualification to each one of the
four variables of the final model at different levels of the scales, going from
“All right” to “All wrong”.
2. Profiles F-I: Customers assigning neutral qualification (“Same as in Chile” or
“Neither agree nor disagree” accordingly) to three of the four variables of the
43
final model and one variable with the worst qualification for e-commerce in
Chile.
3. Profiles J-M: Customers assigning neutral qualification (“Same as in Chile”
or “Neither agree nor disagree” accordingly) to three of the four variables of
the final model and one variable with the best qualification for e-commerce in
Chile.
Using the final model from Section 4.3.4, the different combinations of
assessments were considered as inputs in order to get the predicted probability of
meeting customers’ expectation about the e-commerce in Chile, so that for each
profile a singular probability was calculated. Profile C (“All neutral”) was defined as
the baseline and therefore the last column represents the difference between the
predicted probability for each profile versus the predicted probability for the “All
neutral” profile, indicating the magnitude by which the predicted probability is affected
when comparing each profile versus the “All neutral” one.
Table 4: Predicted probability of meeting customers’ expectation about the e-commerce in

Chile according to different profiles in terms of their assessment to significant selected
questions based on the result of the final model.
Satisfact. Ability to Predicted Difference in

Cheaper
with Variety of check Probability of Pred. Prob.
Profile Profile description products
delivery products reviews Meeting w.r.t. "all
online
process online Expectation neutral"
A All right 1 1 1 5 99.7% 24.4%

B All about right 2 2 2 4 97.0% 21.7%
C* All neutral 3 3 3 3 75.3% 0.0%
D All about wrong 4 4 4 2 22.5% -52.9%
E All wrong 5 5 5 1 2.7% -72.7%
All neutral but…

...better satisfact.
F with delivery 5 3 3 3 55.6% -19.8%
process
...better variety of
G 3 5 3 3 49.7% -25.7%
products
...better cheaper
H 3 3 5 3 40.5% -34.8%
products online
...don’t like
I reviews online in 3 3 3 1 48.2% -27.1%
Chile
44
...better satisfact.
J with delivery 1 3 3 3 88.2% 12.8%
process
...better variety of
K 3 1 3 3 90.4% 15.1%
products
...better cheaper
L 3 3 1 3 93.2% 17.9%
products online
...happy with
M reviews online in 3 3 3 5 90.9% 15.6%
Chile
* Baseline profile
The baseline profile shows a predicted probability of 75%, meaning that when
a customer is neutral in all aspects regarding the assessment of the e-commerce in
Chile compared to e-commerce abroad and to in-store transactions in Chile, then
there is a 75% probability that this customer believes that his/her expectations about
the e-commerce in Chile are met.
Predicted probabilities decay from profiles A to E. As shown in Figure 18, the

probability drops dramatically, from 75% to 22 and 3%, for those profiles where the
assessments are all worse than the neutral one, whereas for profiles where the
assessments are all better than the neutral one, the probability increases from 75%
to 97 and 99.7%. This means that, starting from a neutral status, being more negative
in the evaluation produces a larger impact on the predicted probabilities than being
more positive.
Predicted Probability of Meeting Expectation

99.71% 96.99%
75.33%
22.46%
2.67%
All right All about right All neutral All about wrong All wrong
Figure 18: Predicted probability of meeting expectation.

Consider the profile “All neutral” as the baseline again, then, deteriorating the
qualification of one variable while keeping the others constant, as shown by profiles
F to I, decreases the probability of meeting customers’ expectation about the e-
45
commerce in Chile regardless of which of the assessments is worsened. Therefore,

the difference among the effects of the predictors on the response variable is not
about the direction of their impact, but rather about the magnitude in the decrease of
the probability. The ranking of these magnitudes follows the same ranking based on
the p-values. Namely, this probability decreases by 35% when changing “Cheaper
products online” from “Same as in Chile” to “Much better than in Chile”, 27% when
changing “Ability to check reviews online” from “Neither agree nor disagree” to
“Strongly agree”, 26% when changing “Variety of products” from “Same as in Chile”
to “Much better than in Chile”, and finally 20% when changing “Satisfaction with
delivery process” from “Same as in Chile” to “Much better than in Chile”. On the other
hand, improving the qualification of just one variable while keeping the others constant
increases the probability between 13 and 18%, as shown by profiles J to M.
All this information suggests that making prices cheaper online is the main
factor to increase the probability of meeting customers’ expectations about e-
commerce in Chile followed by improving the access to reviews and
recommendations, increasing the variety of products offered online and upgrade the
delivery-related aspects of online shopping.
46
V. Conclusions
Nowadays e-commerce is in constant growth. Chile presents an important

increment in e-commerce sales in the retail sector. However, these sales represent
only 5% of the total retail sales (Lever, 2018)
Some authors identify factors that can influence the probability to buy online such
as access to credit card and ability to use Internet among others (Salazar, et al.,
2018). On the other hand, (Kim & Stoel, 2005) propose that previous experiences in
purchasing online affect the expectation of the consumers about e-commerce. Then
the research question is based to find the factors that impact on the customer’s
probability of meeting expectations in the retail sector.
CASEN survey allowed to analyse the current scenario of e-commerce in

Chile. The survey suggests a thriving scenario of Chilean e-commerce which is given
by the fact that both Internet usage and e-commerce usage have increased by 24%
and 17% over the last six years correspondingly. The analysis considered aspects
such as Internet access, Internet usage, Access to credit/debit card and use the
Internet for e-commerce. These variables determined a group of people “able to use
e-commerce” which has been increasing over the last six years in 34%. This is a good
opportunity for the companies operating in the e-commerce in Chile and could be a
major challenge if it considers that there is an important group of people who is "able
to use e-commerce" in Chile but they are not making online purchases which
represent 56% of adults with credit/debit card and that have used Internet.
When another secondary source was analysed, the reasons why people are not
buying online could be drawn. The survey of the “Ninth Access and Internet Usage
2017” as well called SUBTEL gives information about what type of products the
respondents have bought in the last 12 months. Based on that information, a new
variable was created called “Online shopping experience” which refers to if the
participant had no online shopping experience, had an online shopping experience
but not in the retail sector, or had an online shopping experience including the retail
sector. The analysis of the SUBTEL, suggests that there is a 40% of people are using
47
the Internet for getting information about products, but they are not using it for buying
online because they are not interested mainly. In contrast to the authors discussed in
the literature review, data protection (SERNAC, 2015), logistics (Flores, 2018), and
delivery process (SERNAC, 2019) are not playing an important role in the decision of
purchasing online as a first approach. Besides, SUBTEL survey could suggest that
previous problems using the Internet do not significantly affect the customer’s
purchasing decision. However, this analysis cannot be conclusive because it refers
to the previous experiences on the Internet no to the experience buying online
specifically and even less in the case of online retail purchasing.
On the other hand, SUBTEL analysis provided information about internet user
profile. The research reveals that individuals between 18 and 45 years old
concentrate the proportion of people who have had online shopping experiences. The
analysis of this group suggests that the higher Internet use frequency the greater is
the probability of purchasing online. This is an important aspect to be considered by
the companies operating in e-commerce because they need to implement further
actions to attract those Internet users who are potential consumers.
As seen in the literature review, online purchasing intent is affected by

expectations that consumers have about e-commerce (Kim & Stoel, 2005). It is
already known that Internet usage is increasing in Chile which emerges from the
CASEN analysis and likewise SUBTEL analysis suggests that the Internet usage
affects the probability of purchasing online and therefore the online purchasing intent.
Then, it is important to know what the factors of e-commerce in Chile that are an
impact in the customer meeting expectation.
The analysis of comparative experiences between both e-commerce abroad

versus e-commerce in Chile and e-commerce in Chile versus in-store shopping
experience was made. This allowed knowing the opinion of the consumers who are
aware of the advantages and disadvantages of e-commerce and the possible aspects
that can be improved. The results of the primary study suggested the main factors
that impact the customer probability of meeting expectations about e-commerce in
Chile. An exploratory analysis of the 180 people, ended up with the following
significant variables as factors that can affect the probability of meeting expectations
48
of buying online: making prices cheaper online than in-store, improving the access to
reviews and recommendations, increasing the variety of products offered online and
upgrade the delivery-related aspects of online shopping.
The original model consisted of 37 variables to predict the dependent variable

“Expectations meeting of E-commerce in Chile”. Backward elimination process and a
subsequent likelihood-ratio test helped to eliminate some coefficients which were not
statistically significant. Then Odds Ratio analysis was used to show the impact of
each independent variable over the explained variable. The results showed a negative
correlation between the variables “Satisfaction with delivery process”, “Variety of
products” and “Cheaper products online” and the explained variable i.e. whereas
customers have a good evaluation about these aspects in the e-commerce abroad,
the customers’ probability of meeting expectation about Chilean e-commerce
decreases. The variable “Cheaper products online” is along the lines (Klaus, 2013)
concludes which have been discussed in the literature review. On the other hand, the
variable “Ability to check reviews online” has a positive correlation with the explained
variable i.e. that the higher assessment of the ability to check reviews online the
greater is the customers’ probability of meeting expectations over the Chilean e-
commerce. It is worth noting that despite some authors say that web design or website
content affects the online purchasing, as was the case of Amazon in China (Ye,
2019), the results of the primary source conclude that website content is not
statistically significant, therefore, this variable is not considered in the final regression
model
The analysis of different customer profiles using the regression model estimated
was made. Different scenarios with different assessments for the final regression
model variables were established to simulate the predicted probability. The analysis
suggested that when the consumers give a better assessment in all the variables to
the e-commerce abroad i.e. Chilean e-commerce is worst or somewhat worse than e-
commerce in a foreign country the customers’ probability of meeting expectation
about e-commerce in Chile is larger impacted than when the individuals are more
optimistic regarding Chilean e-commerce performance. Then if the assessments of a
particular variable vary, keeping constant the rest of the variables in the regression
model, it might conclude that offering cheaper products in the website than in-store is
49
the main factor that impact positively on customer’s probability of meeting

expectations about e-commerce in Chile followed by the access to check reviews and
recommendations on the website, increasing the variety of products offered online
and upgrade the delivery-related aspects of online shopping.
5.1 Recommendations
The comparative experience used in this study allowed to know the thoughts,
perceptions and preferences of people who know other realities about e-commerce
and have previous experiences buying online in foreign countries (Klaus, 2013).
Therefore, it can be assumed that the percentage of people in the SUBTEL survey
who say are not interested in buying online maybe is because they are not aware of
the benefits of e-commerce. If the companies improve the four aspects revealed in
this study such as delivery, variety, prices and access to reviews, then the probability
of meeting expectation about e-commerce in Chile could be improved and therefore
the online purchase intent would be higher. Besides, it is worth to mention that Chilean
government has a “Digital Agenda” which consists in expanding the Internet access,
improving the quality of the Internet access and giving digital skills to the people over
the country among others activities (Agenda Digital 2020, 2019). This along with the
positive growth of possessions of credit/debit cards in Chile would contribute to having
more “able” people to use e-commerce. This presents a good opportunity for the e-
commerce companies because this new group of potential consumers could be
attracted by the companies not only for the ones operating online in the retail sector
but also for the companies operating in other sectors of e-commerce.
5.2 Limitations and Further Researches
(Ye, 2019) suggests that cultural factors can affect the success of a company
operating in the e-commerce. However, this research did not analyse these factors
but, considered aspects based on previous experiences (Klaus, 2013) and based on
online value propositions (Chaffey, 2019). It would be interesting for further research
50
to include cultural factors in the analysis to study its impact on the customers’
shopping online behaviour.
Although the study does not discriminate about the geographical location of the
participants, it would be interesting to know how e-commerce works in non-capital
cities in Chile. It is well known that Chile is a country with territorial and social
inequalities (Mac-Clure & Calvo, 2013) so e-commerce performance and consumers'
shopping behaviour could vary according to whether is about the capital city or the
regions.
51
VI. Appendix
6.1 Appendix: Definition of variables, CASEN

The following variables were used for analysing CASEN survey:
- Age: This is a numeric variable.
- Possession of credit/debit card: This is a binary variable taking the value 1

when the respondent has debit or credit card issued by bank or any other
organism. This variable is the result of a combination of four questions from
the survey as follows: “Demand deposit account or Cuenta Rut”, “Debit card
(issued by banks or credit unions)”, “Credit card issued by banks” and “Credit
card issued by non-banking institutions”. The possible answers are “Yes” or
“No” or “I do not know/ Do not answer”. In order to facilitate the analysis, a
binary variable was created where the possible answers are “Yes” or “No”
where “No” includes the category “I do not know/ Do not answer”.
- Internet access: This is defined as a binary variable taking the value 1 when
the respondent has Internet connexion. This variable is the result of a
combination of four questions from the survey as follows: “Do you have access
to a paid Internet connection: fixed broadband”, “Do you have access to a paid
Internet connection: mobile broadband”, “Do you have access to a paid
Internet connection: Mobile phone with data plan” and “Do you have access
to a paid Internet connection: Tablet or any device with data plan”. The
possible answers are “Yes” or “No” or “I do not know/ Do not answer”. In order
to facilitate the analysis, a binary variable was created where the possible
answers are “Yes” or “No” where “No” includes the category “I do not know/
Do not answer”.
- Internet use: This is defined as a binary variable taking the value 1 when the
respondent use Internet for any reason. This variable is the result of a
combination of 10 questions from the survey as follows:
52
a. Getting information on Internet search engine such as Google and

others.
b. Getting information from digital news or social media
c. Communicating by email
d. Communicating by social media
e. Entertainment
f. Buying or selling items or services on Internet
g. Online banking operations
h. Formal education and training activities
i. Online procedures with public institutions
j. Online procedures with private institutions
The possible answers for each question are “Yes” or “No” or “I do not know/
Do not answer”. In order to facilitate the analysis, a binary variable was created
where the possible answers are “Yes” or “No” where “No” includes the
category “I do not know/ Do not answer”.
- E-commerce use: This is defined as a binary variable taking the value 1 when
the respondent use Internet for buying or selling. The question considered by
this variable is that corresponding to letter “f” according to the list presented
above. While it is true that this research is focused on retail purchases only,
the variable “E-commerce use” defined in this analysis give a first approach of
the current situation of e-commerce in Chile.
53
6.2 Appendix: Definition of variables, SUBTEL
The two main variables to be analysed are:

1. General online shopping. This is defined as a binary variable taking the value 1
when the respondent bought online in the last 12 months. This variable is the
result of a combination of 16 variables from the survey. The question for each one
of these variables is “In the last 12 months, which product or service did you buy
online for personal use?”. All but one of the 16 variables correspond to one
specific group of items, and the last one captures all those not specified in the
previous options by making available the category “others”. The list of groups of
items is the following:
a. Training courses
b. Books, magazines, newspapers
c. Films, images, music
d. Clothes, shoes, sport articles, food, alcohol, tobacco
e. Motorized vehicles
f. Housekeeping items
g. Audio equipment, tv, household appliances, furniture
h. Computers, notebooks and related articles
i. Videogames
j. Financial products
k. Telecommunication services
l. Photographic equipment
m. Tickets, entertaining events
n. Travel related products and services
o. Food and drinks
p. Others
These are all the options given by the survey to the respondent.
2. Retail online shopping. This is defined as a binary variable taking the value 1
when the respondent bought online at least one item from a subset of the ones
listed for the variable “General online shopping” in the last 12 months. The items
considered by this variable are those corresponding to letters d, g, h, i, and l
54
according to the list presented above. The criterion is to consider those items that
are usually offered online by retail stores.
Other variables will be used to describe their association with the two variables listed
above. They are:
3. Age: This is a categorical variable with five possible intervals representing the
age of the respondent.
4. Internet use frequency: This is a categorical variable with four mutually exclusive
options representing the frequency in which the respondent has used internet in
the last 12 months. The question for this variable is “What is the frequency in
which you have used internet during the last 12 months?” The possible answers
are: “At least once per day”, “At least once per week but not every day”, “At least
once per month but not every week”, or “Less than once per month”.
5. Internet purpose: This is a categorical variable with 37 options representing the
purpose for which the respondent has used internet in the last three months
regarding personal use. The question for this variable is “In the last three months
and thinking of your personal use, which of the following purposes have you used
internet for?” The possible answers are 37, from which the one of interest for this
study is “Getting information about products and services (prices, technical
details, stores)”. Note that the respondent is allowed to give multiple answers to
this question.
6. No online shopping: This is a categorical variable with 8 options representing
the reasons why the respondent has not used internet in the last 12 months to buy
online for personal use. The question for this variable is “In the last 12 months,
what are the reasons why you have not bought online for your personal use?” The
possible answers are 8, which will be mentioned when this variable is analysed.
Note that the respondent is allowed to give multiple answers to this question.
7. Online safety and privacy: This is a categorical variable with 5 options
representing the problems that the respondent has had in terms of safety and
security when using the Internet in the last three months. The question for this
variable is “In the last three months, what problems have you had regarding online
information safety and privacy?” The possible answers are 5, which will be
mentioned when this variable is analysed. Note that the respondent is allowed to
give multiple answers to this question.
55
6.3 Appendix: CASEN: multidimensional analysis
CASEN 2015
Total adult
population in Chile
13,183,470

4,520,120 8,663,350
2,322,030 6,341,320

commerce commerce
4,034,176 2,307,144
CASEN 2013
Total adult
population in Chile
12,858,190

5,749,853 7,108,337
2,511,330 4,597,007

commerce commerce
2,994,544 1,602,463
56
CASEN 2011
Total adult
population in Chile
12,538,605

7,222,356 5,316,249
2,141,542 3,174,707

commerce commerce
2,097,095 1,077,612
57
6.4 Appendix: Questionnaire flow chart
Do you accept to
Yes participate in this study,
No
and do you agree with the
consent form?
Email (optional)
> 45 Yes
years
Age old
No
Gender
Have you ever bought online in retail No
companies located in Chile from Chile?
Education
Yes
Income
Have you ever bought in store of retail No
companies located in Chile?

Are you Chilean?
Yes
No Have you ever bought online in retail

No
companies located abroad from abroad?
Which foreign country have you bought
online most of the time when you have been
abroad?
Based on your experience in the

country mentioned in the previous
See Appendix 6.4.1 “Abroad versus Chile e-commerce
question, How do you think that E- questions”
Commerce in the retail sector works
abroad?
How do you think that E-Commerce in

See Appendix 6.4.2 “Chilean E-commerce versus in-store in
the retail sector works in Chile?
Chile questions”
When you buy online in the retail

companies located in Chile from Chile, what
is your usual way to get the products?
When was the last time when you bought

something online in retail companies
located in Chile from Chile?
Imagine that you are in Chile and you need

a product of the retail company located in
Chile. The product is available in-store and
online. Would you prefer to buy it online
instead of in-store?
Do you know someone who is qualified

Do you think that E-Commerce of the retail and is interested in this study?
sector in Chile meet your expectations?
(Optional)
Debrief
58
6.4.1 Abroad versus Chile e-commerce questions

Satisfaction with payment methods (Rejected payment, Access to
debit/credit card, etc)
Satisfaction with delivery process (Delivery time, costs, etc)
Technical features (Website, Internet connection quality, etc)
Information in the website about product characteristics such as

Based on your quality, usages, etc.
experience in the
country mentioned in
the previous question, Variety of products offered online.
How do you think that
E-Commerce in the
Access to reviews and recommendations about products offered in
retail sector works the website.
abroad?
Ability to purchase at anytime.
Availability of cheaper products than in-store
Access to product suggestions in the website related to my

preferences or previous purchases.
Customer Service (Refunds, returns, claiming, etc)
Safety and Data protection.
59
6.4.2 Chilean E-commerce versus in-store in Chile questions
I can find more variety of products in the website than in store.
I can get more information about the product in the website than in store.
One of the advantage of buying online over the store is that I can check reviews
and opinion of other buyers.
One of the advantage of buying online over the store is that I can buy at
anytime.
How do you
think that E- One of the advantage of buying online over the store is that I can get
Commerce in advertisements in the website related to my preferences or previous purchases.
the retail
sector works
One of the reasons why I buy in-store is because allow me to get the products
in Chile? when I need them.
One of the reasons why I buy in-store is because I do not trust that the
customer service online can answer my requirements quickly and efficiently.
Buying online is cheaper than buying in-store.
One of the reasons why I buy in-store is because I do not trust to enter my
personal details in the website.
60
6.5 Appendix: Codes, names and questions of the variables -

expectations survey
Code Variable Name Question
DATE Date Date
Do you accept to participate in this study and do you
CONS Consent
agree with the consent form?
EMAIL Email Email (Optional)
AGE Age Age
FEMALE Gender Gender
EDU Education Education
INCOME Income Income
CL Nationality Are you Chilean?
Have you ever bought online in retail companies located in
OPCL Online purchase from Chile
Chile from Chile?
Have you ever bought in store of retail companies located
SPCL Store purchase in Chile
in Chile?
Have you ever bought online in retail companies located
OPAB Online purchase from abroad
abroad from abroad?
Which foreign country have you bought online the most of
Foreign country where individuals
COUNTRY_AB the time when you have been abroad? Please write only
have bought the most of the time
one.
Based on your experience in the country mentioned in the
previous question, How do you think that E-Commerce in
E-commerce abroad v/s Chile -
ABCL_PM the retail sector works abroad? Satisfaction with payment
Satisfaction with payment methods
methods (Rejected payment, Access to debit/credit card,
etc)
E-commerce abroad v/s Chile - previous question, How do you think that E-Commerce in
ABCL_DEL
Satisfaction with delivery process the retail sector works abroad? Satisfaction with delivery
process (Delivery time, costs, etc)
ABCL_TECH
Technical features the retail sector works abroad? Technical features
(Website, Internet connection quality, etc)

ABCL_CONT
Website Content the retail sector works abroad? Information in the website
about product characteristics such as quality, usages, etc.

ABCL_VARI
Variety of products (Choice) the retail sector works abroad? Variety of products offered
online.

ABCL_COMM Access to reviews and
the retail sector works abroad? Access to reviews and
recommendations
recommendations about products offered in the website.

ABCL_CONV
Availability to purchase at anytime the retail sector works abroad? Ability to purchase at
anytime.
ABCL_COSTS Cheaper products online than in-
the retail sector works abroad? Availability of cheaper
store
products than in-store.
ABCL_CUSTO Access to suggestions related to the retail sector works abroad? Access to product
preferences suggestions in the website related to my preferences or
previous purchases.
ABCL_CUSTSS
Customer Service the retail sector works abroad? Customer Service
(Refunds, returns, claiming, etc)
61
Code Variable Name Question

ABCL_DATAP previous question, How do you think that E-Commerce in
Data Protection
the retail sector works abroad? Safety and Data protection.
How do you think that E-Commerce in the retail sector

Chile: More variety of products in
ONST_VARI works in Chile? I can find more variety of products in the
the website than in-store
website than in store.
Chile: More information about How do you think that E-Commerce in the retail sector
ONST_CONT products in the website than in- works in Chile? I can get more information about the
store product in the website than in store.
Advantage E-commerce from Chile
works in Chile? One of the advantage of buying online
ONST_COMM over the store: Ability to check
over the store is that I can check reviews and opinion of
reviews online
other buyers.
Advantage E-commerce from Chile How do you think that E-Commerce in the retail sector
ONST_CONV over the store: : Ability to buy at works in Chile? One of the advantage of buying online
anytime over the store is that I can buy at anytime.
Advantage E-commerce from Chile
works in Chile? One of the advantage of buying online
ONST_CUSTO over the store: Advertisements
over the store is that I can get advertisements in the
related to preferences
website related to my preferences or previous purchases.
Reason why buying in-store in How do you think that E-Commerce in the retail sector
ONST_IMMED Chile: Ability to get the products works in Chile? One of the reasons why I buy in-store is
according needs because allow me to get the products when I need them.
Reason why buying in-store in Chile
works in Chile? One of the reasons why I buy in-store is
ONST_CUSTSS Lack of trust in online customer
because I do not trust that the online customer service can
service
answer my requirements quickly and efficiently.
Chile: Cheaper products in the
ONST_COSTS works in Chile? Buying online is cheaper than buying in-
website than in-store
store.
Reason why buying in-store in
works in Chile? One of the reasons why I buy in-store is
ONST_DATAP Chile: Lack of trust in data
because I do not trust to enter my personal details in the
protection
website.
When you buy online in the retail companies located in
Delivery Channels in the e-
CHANNEL Chile from Chile, what is your usual way to get the
commerce from Chile
products?
Last time of online purchasing from When was the last time when you bought something online
LASTPURCH_CL
Chile in retail companies located in Chile from Chile?
Imagine that you are in Chile and you need a product of
the retail company located in Chile. The product is
PREF_ONST Preferences: Online v/s in-store
available in-store and online. Would you prefer to buy it
online instead of in-store?
Could you please give me an email of someone who may
REFER Referred participants be eligible and could be interested in participate in this
study?
Expectations meeting of E- Do you think that E-Commerce of the retail sector in Chile
EXPECT_ONCL
commerce in Chile meet your expectations?
62
6.6 Appendix: SPSS Code, CASEN
The code shown below corresponds to the analysis of the survey CASEN
2017. The code for previous years is omitted because it follows the same
structure and changes variable names mainly.
**********************************************
**********************************************
*********** CASEN 2017 ************
**********************************************
**********************************************
* Make sure there is no expansion factor being used.

WEIGHT OFF.
* Use expansion factor the analysis needs.

WEIGHT BY expr.
* Creates flag for people older than 17 years old.

COMPUTE Adulto=edad>17.
EXECUTE.
DATASET ACTIVATE DataSet1.

FREQUENCIES VARIABLES=Adulto
/ORDER=ANALYSIS.
* Select cases for people older than 17 years old.

USE ALL.
COMPUTE filter_$=(Adulto=1).
VARIABLE LABELS filter_$ 'Adulto=1 (FILTER)'.
VALUE LABELS filter_$ 0 'Not Selected' 1 'Selected'.
FORMATS filter_$ (f1.0).
FILTER BY filter_$.
EXECUTE.
**********************************************
**********************************************
*********** Credit/debit cards ************
**********************************************
**********************************************
* Convert questions related to credit/debit cards into binary variables.

RECODE y27c (1=1) (ELSE=0) INTO y27cBinary.
VARIABLE LABELS y27cBinary 'y27cBinary'.
EXECUTE.

RECODE y27d (1=1) (ELSE=0) INTO y27dBinary.
VARIABLE LABELS y27dBinary 'y27dBinary'.
EXECUTE.

RECODE y27e (1=1) (ELSE=0) INTO y27eBinary.
VARIABLE LABELS y27eBinary 'y27eBinary'.
EXECUTE.
63
RECODE y27f (1=1) (ELSE=0) INTO y27fBinary.

VARIABLE LABELS y27fBinary 'y27fBinary'.
EXECUTE.
* Create variable for credit cards. This variable shows the number of credit cards categories the
respondents have.
COMPUTE TarjCredito=y27eBinary+y27fBinary.
EXECUTE.
* Create variable for credit/debit cards. This variable shows the number of credit/debit cards categories
the respondents have.
COMPUTE TarjTodas=TarjCredito+y27cBinary+y27dBinary.
EXECUTE.
* Creates binary variable for credit/debit cards. This variable shows 1 when the respondent have
credit/debit cards and 0 otherwise.
RECODE TarjTodas (0=0) (ELSE=1) INTO TarjTodasBinary.
VARIABLE LABELS TarjTodasBinary 'TarjTodasBinary'.
EXECUTE.
* Creates table for credit/debit card possession.

CTABLES
/VLABELS VARIABLES=TarjCredito TarjTodas DISPLAY=LABEL
/TABLE TarjCredito [COUNT F40.0] BY TarjTodas
/CATEGORIES VARIABLES=TarjCredito ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=TarjTodas ORDER=A KEY=VALUE EMPTY=EXCLUDE.
CTABLES
/VLABELS VARIABLES=TarjCredito TarjTodas DISPLAY=LABEL
/TABLE TarjCredito [COUNT F40.0] BY TarjTodas
/CATEGORIES VARIABLES=TarjCredito ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=TarjTodas ORDER=A KEY=VALUE EMPTY=EXCLUDE.
**********************************************
**********************************************
*********** Internet access ************
**********************************************
**********************************************
* Convert questions related to internet access (different types of internet contracts) into binary
variables.
RECODE r17a (1=1) (ELSE=0) INTO r17aBinary.
VARIABLE LABELS r17aBinary 'r17aBinary'.
EXECUTE.

RECODE r17b (1=1) (ELSE=0) INTO r17bBinary.
VARIABLE LABELS r17bBinary 'r17bBinary'.
EXECUTE.

RECODE r17c (1=1) (ELSE=0) INTO r17cBinary.
VARIABLE LABELS r17cBinary 'r17cBinary'.
EXECUTE.

RECODE r17d (1=1) (ELSE=0) INTO r17dBinary.
VARIABLE LABELS r17dBinary 'r17dBinary'.
EXECUTE.
64
* Custom Tables.
CTABLES
/VLABELS VARIABLES=r17c r17cBinary DISPLAY=LABEL
/TABLE r17c [COUNT F40.0] BY r17cBinary
/CATEGORIES VARIABLES=r17c ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=r17cBinary ORDER=A KEY=VALUE EMPTY=EXCLUDE.
CTABLES
/VLABELS VARIABLES=r17d r17dBinary DISPLAY=LABEL
/TABLE r17d [COUNT F40.0] BY r17dBinary
/CATEGORIES VARIABLES=r17d ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=r17dBinary ORDER=A KEY=VALUE EMPTY=EXCLUDE.
* Creates variable for internet access. This variable shows the number of contract categories with
which the respondents have internet access.
COMPUTE AccesoInternet=r17aBinary+r17bBinary+r17cBinary+r17dBinary.
EXECUTE.
* Creates binary variable for internet access. This variable shows 1 when the respondent has internet
access and 0 otherwise.
RECODE AccesoInternet (0=0) (ELSE=1) INTO AccesoInternetBinary.
VARIABLE LABELS AccesoInternetBinary 'AccesoInternetBinary'.
EXECUTE.
CTABLES
/VLABELS VARIABLES=AccesoInternet AccesoInternetBinary DISPLAY=LABEL
/TABLE AccesoInternet [COUNT F40.0] BY AccesoInternetBinary
/CATEGORIES VARIABLES=AccesoInternet ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=AccesoInternetBinary ORDER=A KEY=VALUE EMPTY=EXCLUDE.
**********************************************
**********************************************
*********** Internet use ************
**********************************************
**********************************************
* Convert questions related to internet use (purpose) into binary variables.

RECODE r21a (1=1) (ELSE=0) INTO r21aBinary.
VARIABLE LABELS r21aBinary 'r21aBinary'.
EXECUTE.

RECODE r21b (1=1) (ELSE=0) INTO r21bBinary.
VARIABLE LABELS r21bBinary 'r17bBinary'.
EXECUTE.

RECODE r21c (1=1) (ELSE=0) INTO r21cBinary.
VARIABLE LABELS r21cBinary 'r21cBinary'.
EXECUTE.

RECODE r21d (1=1) (ELSE=0) INTO r21dBinary.
VARIABLE LABELS r21dBinary 'r21dBinary'.
EXECUTE.

RECODE r21e (1=1) (ELSE=0) INTO r21eBinary.
VARIABLE LABELS r21eBinary 'r21eBinary'.
65
EXECUTE.

RECODE r21f (1=1) (ELSE=0) INTO r21fBinary.
VARIABLE LABELS r21fBinary 'r21fBinary'.
EXECUTE.

RECODE r21g (1=1) (ELSE=0) INTO r21gBinary.
VARIABLE LABELS r21gBinary 'r21gBinary'.
EXECUTE.

RECODE r21h (1=1) (ELSE=0) INTO r21hBinary.
VARIABLE LABELS r21hBinary 'r21hBinary'.
EXECUTE.

RECODE r21i (1=1) (ELSE=0) INTO r21iBinary.
VARIABLE LABELS r21iBinary 'r21iBinary'.
EXECUTE.

RECODE r21j (1=1) (ELSE=0) INTO r21jBinary.
VARIABLE LABELS r21jBinary 'r21jBinary'.
EXECUTE.
* Custom Tables.
CTABLES
/VLABELS VARIABLES=r21c r21cBinary DISPLAY=LABEL
/TABLE r21c [COUNT F40.0] BY r21cBinary
/CATEGORIES VARIABLES=r21c ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=r21cBinary ORDER=A KEY=VALUE EMPTY=EXCLUDE.
CTABLES
/VLABELS VARIABLES=r21d r21dBinary DISPLAY=LABEL
/TABLE r21d [COUNT F40.0] BY r21dBinary
/CATEGORIES VARIABLES=r21d ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=r21dBinary ORDER=A KEY=VALUE EMPTY=EXCLUDE.
* Creates variable for internet use (purpose). This variable shows the number of use categories where
the respondents have used internet to.
COMPUTE
UsoInternet=r21aBinary+r21bBinary+r21cBinary+r21dBinary+r21eBinary+r21fBinary+r21gBinary+r21h
Binary+r21iBinary+r21jBinary.
EXECUTE.
* Creates binary variable for internet use (purpose). This variable shows 1 when the respondent has
used internet to buy and 0 otherwise.
RECODE UsoInternet (0=0) (ELSE=1) INTO UsoInternetBinary.
VARIABLE LABELS UsoInternetBinary 'UsoInternetBinary'.
EXECUTE.
CTABLES
/VLABELS VARIABLES=UsoInternet UsoInternetBinary DISPLAY=LABEL
/TABLE UsoInternet [COUNT F40.0] BY UsoInternetBinary
/CATEGORIES VARIABLES=UsoInternet ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=UsoInternetBinary ORDER=A KEY=VALUE EMPTY=EXCLUDE.
* Creates table: use internet to buy.

CTABLES
66
/VLABELS VARIABLES=r21f r21fBinary DISPLAY=LABEL

/TABLE r21f [COUNT F40.0] BY r21fBinary
/CATEGORIES VARIABLES=r21f ORDER=A KEY=VALUE EMPTY=INCLUDE
/CATEGORIES VARIABLES=r21fBinary ORDER=A KEY=VALUE EMPTY=EXCLUDE.
* Select cases for people between 18 and 45 years old with credit/debit card, and use internet.
USE ALL.
COMPUTE filter_$=(Adulto=1 & TarjTodas>0 & UsoInternetBinary=1).
VARIABLE LABELS filter_$ 'Adulto=1 & TarjTodas>0 & UsoInternetBinary=1 (FILTER)'.
VALUE LABELS filter_$ 0 'Not Selected' 1 'Selected'.
FORMATS filter_$ (f1.0).
FILTER BY filter_$.
EXECUTE.
* Creates table: adult or not adult, with ot without credit/debit card, have internet access, use internet,
and use internet to buy.
CTABLES
/VLABELS VARIABLES=Adulto TarjTodasBinary AccesoInternetBinary UsoInternetBinary r21fBinary
DISPLAY=LABEL
/TABLE Adulto > TarjTodasBinary > AccesoInternetBinary [COUNT F40.0] BY UsoInternetBinary >
r21fBinary
/CATEGORIES VARIABLES=Adulto TarjTodasBinary AccesoInternetBinary UsoInternetBinary
ORDER=A
KEY=VALUE EMPTY=EXCLUDE
/CATEGORIES VARIABLES=r21fBinary ORDER=A KEY=VALUE EMPTY=EXCLUDE TOTAL=YES
POSITION=AFTER.
67
6.7 Appendix: SPSS Code, SUBTEL

* Do not use filter.
FILTER OFF.
USE ALL.
EXECUTE.
* Use expansion factor.

WEIGHT BY FACTOR_PERSONA.
* Convert questions related to different product categories within online shopping into binary variables.
RECODE Q18_1 (1=1) (ELSE=0) INTO Q18_1Binary.
VARIABLE LABELS Q18_1Binary 'Q18_1Binary'.
EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.
68

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.

EXECUTE.
* Creates variable for online shopping. This variable shows the number of product/service categories
where the respondents have used e-commerce to buy.
COMPUTE CompraOnline =
Q18_1Binary+Q18_2Binary+Q18_3Binary+Q18_4Binary+Q18_5Binary+Q18_6Binary+Q18_7Binary+
Q18_8Binary+Q18_9Binary+Q18_10Binary+Q18_11Binary+Q18_12Binary+Q18_13Binary+Q18_14Bi
nary+Q18_15Binary+Q18_16Binary.
EXECUTE.
* Creates binary variable for online shopping. This variable shows 1 when the respondent has use e-
commerce to buy and 0 otherwise.
RECODE CompraOnline (0=0) (ELSE=1) INTO CompraOnlineBinary.
VARIABLE LABELS CompraOnlineBinary 'CompraOnlineBinary'.
EXECUTE.
* Create variable for online shopping of products offered by the retail sector.
* This variable shows the number of product categories where the respondants have use e-commerce
to buy products offered by the retail sector.
COMPUTE CompraRetail = Q18_4Binary+Q18_7Binary+Q18_8Binary+Q18_9Binary+Q18_12Binary.
EXECUTE.
* Create binary variable for online shopping of products offered by the retail sector.
* This variable shows 1 when the respondent have use e-commerce to buy products offered by the
retail sector and 0 otherwise.
RECODE CompraRetail (0=0) (ELSE=1) INTO CompraRetailBinary.
VARIABLE LABELS CompraRetailBinary 'CompraRetailBinary'.
EXECUTE.
* Creates table.
* Custom Tables.
69
CTABLES
/VLABELS VARIABLES=CompraOnlineBinary CompraRetailBinary DISPLAY=LABEL
/TABLE CompraOnlineBinary [COUNT F40.0] BY CompraRetailBinary
/CATEGORIES VARIABLES=CompraOnlineBinary CompraRetailBinary ORDER=A KEY=VALUE
EMPTY=EXCLUDE.
* Recoding age.
STRING REDAD_USOS2 (A15).
RECODE EDAD_USOS (Lowest thru 17='1 Under 18') (18 thru 32='2 18 to 32') (33 thru 45='3 33 to
45')
(46 thru 60='4 46 to 60') (61 thru Highest='5 More than 60') INTO REDAD_USOS2.
VARIABLE LABELS REDAD_USOS2 'Rango de edad tesis'.
EXECUTE.
* Creates table: Online and/or retail buyer by age.

CTABLES
/VLABELS VARIABLES=REDAD_USOS2 CompraOnlineBinary CompraRetailBinary
DISPLAY=LABEL
/TABLE REDAD_USOS2 BY CompraOnlineBinary [C] > CompraRetailBinary [C][COUNT F40.0]
/CATEGORIES VARIABLES=REDAD_USOS2 ORDER=A KEY=VALUE EMPTY=INCLUDE
EMPTY=EXCLUDE.
* Creates table: Online and/or retail buyer by frequency of internet use.

CTABLES
/VLABELS VARIABLES=Q8 CompraOnlineBinary CompraRetailBinary DISPLAY=LABEL
/TABLE Q8 BY CompraOnlineBinary [C] > CompraRetailBinary [C][COUNT F40.0]
/CATEGORIES VARIABLES=Q8 ORDER=A KEY=VALUE EMPTY=INCLUDE
EMPTY=EXCLUDE.
* Creates table: Online and/or retail buyer by reason to use internet.

CTABLES
/VLABELS VARIABLES=Q14_1 CompraOnlineBinary CompraRetailBinary DISPLAY=LABEL
/TABLE Q14_1 BY CompraOnlineBinary [C] > CompraRetailBinary [C][COUNT F40.0]
/CATEGORIES VARIABLES=Q14_1 ORDER=A KEY=VALUE EMPTY=INCLUDE
EMPTY=EXCLUDE.
* Creates binary variable for those who use internet to find information about products and/or services.
RECODE Q14_1 (1=1) (ELSE=0) INTO GetInfoBinary.
VARIABLE LABELS GetInfoBinary 'GetInfoBinary'.
EXECUTE.
* Creates binary variable for those who use internet to find information about products and/or services
and did not buy online.
COMPUTE GetInfoNoOnlineShoppingBinary = GetInfoBinary*(1-CompraOnlineBinary).
EXECUTE.
* Creates table: Reasons why not to buy online with flag for those who look for info online but do not
buy.
* One table for each reason.
CTABLES
/VLABELS VARIABLES=Q19_1 CompraOnlineBinary CompraRetailBinary
GetInfoNoOnlineShoppingBinary
DISPLAY=LABEL
/TABLE Q19_1 BY CompraOnlineBinary > CompraRetailBinary > GetInfoNoOnlineShoppingBinary
[C][COUNT
F40.0]
70
/CATEGORIES VARIABLES=CompraOnlineBinary CompraRetailBinary

GetInfoNoOnlineShoppingBinary ORDER=A
KEY=VALUE EMPTY=EXCLUDE.
CTABLES
DISPLAY=LABEL
[C][COUNT
F40.0]
CTABLES
DISPLAY=LABEL
[C][COUNT
F40.0]
CTABLES
DISPLAY=LABEL
[C][COUNT
F40.0]
CTABLES
DISPLAY=LABEL
[C][COUNT
F40.0]
CTABLES
DISPLAY=LABEL
[C][COUNT
F40.0]
71
CTABLES
DISPLAY=LABEL
[C][COUNT
F40.0]
CTABLES
DISPLAY=LABEL
[C][COUNT
F40.0]
* Creates table: Regarding safety and privacy of information. What kind of problem did you have in the
last three months?.
* One table for each problem.
CTABLES
/VLABELS VARIABLES=Q20D_1 CompraOnlineBinary CompraRetailBinary DISPLAY=LABEL
/TABLE Q20D_1 [COUNT F40.0] BY CompraOnlineBinary > CompraRetailBinary
/CATEGORIES VARIABLES=Q20D_1 ORDER=A KEY=VALUE EMPTY=INCLUDE
EMPTY=EXCLUDE.
CTABLES
EMPTY=EXCLUDE.
CTABLES
EMPTY=EXCLUDE.
CTABLES
EMPTY=EXCLUDE.
CTABLES
EMPTY=EXCLUDE
72
6.8 Appendix: R Code, expectation survey

# Clean the workspace and load packages
rm(list=ls())
library(readxl) # Package to import from excel
library(lmtest) # Package to conduct the likelihood ratio test
osValues <- read_excel("P:/Daniela/LSBU /Survey/Answers.xlsx",sheet="Rvalues")

osValues <- as.data.frame(osValues)
head(osValues); dim(osValues); class(osValues); str(osValues)
table(osValues$EXPECT_ONCL)
# Convert numeric variables to factor variables

col_names <-
c("AGE","FEMALE","EDU","INCOME","CL","CHANNEL","LASTPURCH_CL","PREF_ONST","EXPECT
_ONCL")
osValues[,col_names] <- lapply(osValues[,col_names] , factor)
str(osValues)
names(osValues)
# Fit the full model

modelVal1 <- glm(EXPECT_ONCL ~
AGE+FEMALE+EDU+INCOME+CL+ABCL_PM+ABCL_DEL+ABCL_TECH+
ABCL_CONT+ABCL_VARI+ABCL_COMM+ABCL_CONV+ABCL_COSTS+ABCL_C
USTO+ABCL_CUSTSS+
ABCL_DATAP+ONST_VARI+ONST_CONT+ONST_COMM+ONST_CONV+ONST_
CUSTO+
ONST_IMMED+ONST_CUSTSS+ONST_COSTS+ONST_DATAP+CHANNEL+LAST
PURCH_CL,
data = osValues, family = binomial)
summary(modelVal1)
length(modelVal1$coefficients) # Computes the number of coefficients in the model.
# Performs backwards elimination algorithm

step(glm(EXPECT_ONCL ~
AGE+FEMALE+EDU+INCOME+CL+ABCL_PM+ABCL_DEL+ABCL_TECH+
ABCL_CONT+ABCL_VARI+ABCL_COMM+ABCL_CONV+ABCL_COSTS+ABCL_C
USTO+ABCL_CUSTSS+
ABCL_DATAP+ONST_VARI+ONST_CONT+ONST_COMM+ONST_CONV+ONST_
CUSTO+
ONST_IMMED+ONST_CUSTSS+ONST_COSTS+ONST_DATAP+CHANNEL+LAST
PURCH_CL,
data = osValues, family = binomial), direction = "backward")
# Results: BACKWARD=BOTH
# Fits model selected by backwards elimination algorithm, summarises its result and performs
likelihood ratio test
modelVal50 <- glm(formula = EXPECT_ONCL ~ ABCL_DEL + ABCL_CONT + ABCL_VARI +
ABCL_COMM + ABCL_CONV + ABCL_COSTS + ONST_COMM + ONST_CUSTO +
ONST_CUSTSS + LASTPURCH_CL, family = binomial, data = osValues)
summary(modelVal50)
lrtest(modelVal1, modelVal50) # Current model is not that different from Model 1
# Fits model selected by backwards elimination algorithm excluding LASTPURCH_CL

# summarises its result and performs likelihood ratio test
ABCL_COMM + ABCL_CONV + ABCL_COSTS + ONST_COMM + ONST_CUSTO +
ONST_CUSTSS, family = binomial, data = osValues)
summary(modelVal51)
73
# Fits model selected by backwards elimination algorithm excluding LASTPURCH_CL and

ONST_CUSTO
ABCL_COMM + ABCL_CONV + ABCL_COSTS + ONST_COMM +
ONST_CUSTSS, family = binomial, data = osValues)
summary(modelVal52)
# Fits model selected by backwards elimination algorithm excluding LASTPURCH_CL +

ONST_CUSTO + ONST_CUSTSS
ABCL_COMM + ABCL_CONV + ABCL_COSTS + ONST_COMM,
family = binomial, data = osValues)
summary(modelVal53)

ONST_CUSTO + ONST_CUSTSS + ABCL_CONT + ABCL_CONV
modelVal54 <- glm(formula = EXPECT_ONCL ~ ABCL_DEL + ABCL_VARI +
ABCL_COMM + ABCL_COSTS + ONST_COMM,
summary(modelVal54)

ONST_CUSTO + ONST_CUSTSS + ABCL_CONT + ABCL_CONV + ABCL_COMM
modelVal55 <- glm(formula = EXPECT_ONCL ~ ABCL_DEL + ABCL_VARI + ABCL_COSTS +
ONST_COMM,
summary(modelVal55)
lrtest(modelVal1, modelVal55) # Current model is not that different from Model 1: THIS IS THE FINAL
MODEL

ONST_CUSTO + ONST_CUSTSS + ABCL_CONT + ABCL_CONV + ABCL_COMM + ABCL_DEL
modelVal56 <- glm(formula = EXPECT_ONCL ~ ABCL_VARI + ABCL_COSTS + ONST_COMM,
summary(modelVal56)
lrtest(modelVal1, modelVal56) # Current model is statistically different from Model 1!! (worse)
# Generates data to predict probabilities using model 55

newdata = data.frame(ABCL_DEL =c(1,2,3,4,5,5,3,3,3,1,3,3,3),
ABCL_VARI =c(1,2,3,4,5,3,5,3,3,3,1,3,3),
ABCL_COSTS=c(1,2,3,4,5,3,3,5,3,3,3,1,3),
ONST_COMM =c(5,4,3,2,1,3,3,3,1,3,3,3,5))
# Predicted probabilities for customers’ profile

predProb <- predict(modelVal55, newdata, type="response")
cbind(newdata,predProb)
74
6.9 Appendix: Full model table

Results of the logistic regression model with all predictors available from the survey.
Dependent variable: EXPECT_ONCL. The full model.

(Intercept) -13.754 1382.008 -0.010 0.992
AGE1 0.712 0.588 1.210 0.226
FEMALE1 0.543 0.583 0.932 0.351
EDU2 -0.121 2.267 -0.053 0.957
EDU3 0.368 1.641 0.224 0.823
EDU4 -0.841 1.625 -0.517 0.605
INCOME1 -0.805 1.420 -0.567 0.571
INCOME2 0.237 0.912 0.260 0.795
INCOME3 0.870 0.855 1.018 0.309
INCOME4 0.690 0.974 0.708 0.479
CL1 1.479 0.794 1.863 0.062 .
ABCL_PM 0.105 0.311 0.339 0.735
ABCL_DEL -0.234 0.353 -0.663 0.507
ABCL_TECH -0.126 0.415 -0.305 0.761
ABCL_CONT -0.646 0.417 -1.547 0.122
ABCL_VARI -0.878 0.463 -1.895 0.058 .
ABCL_COMM 1.214 0.385 3.150 0.002 **
ABCL_CONV -0.722 0.364 -1.985 0.047 *
ABCL_COSTS -0.508 0.291 -1.746 0.081 .
ABCL_CUSTO -0.267 0.331 -0.808 0.419
ABCL_CUSTSS -0.210 0.334 -0.628 0.530
ABCL_DATAP 0.331 0.336 0.985 0.325
ONST_VARI 0.156 0.245 0.634 0.526
ONST_CONT 0.304 0.256 1.187 0.235
ONST_COMM 0.348 0.243 1.436 0.151
ONST_CONV -0.032 0.327 -0.099 0.921
ONST_CUSTO 0.514 0.266 1.933 0.053 .
ONST_IMMED -0.087 0.183 -0.477 0.633
ONST_CUSTSS -0.207 0.212 -0.974 0.330
ONST_COSTS -0.346 0.248 -1.394 0.163
ONST_DATAP -0.112 0.211 -0.530 0.596
CHANNEL2 0.218 0.625 0.348 0.728
CHANNEL3 -0.241 0.603 -0.400 0.689
LASTPURCH_CL1 19.647 1382.006 0.014 0.989
LASTPURCH_CL2 16.525 1382.005 0.012 0.990
LASTPURCH_CL3 17.391 1382.005 0.013 0.990
LASTPURCH_CL4 16.445 1382.005 0.012 0.991
Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
75
6.10 Appendix: Ethical considerations
Personal information of the participant such as email, age, gender, education and
income, among others, was asked. However, the researcher made sure the
confidentiality of the information collected with an encrypted folder. In the case of the
email information, it was optional, so that the subject had the option to participate
anonymously. The confidentiality policy as well as the purpose of the study were
informed at the beginning of the survey. A signed consent was asked to each
participant.
Another aspect to consider is the age range of the participant. Despite that the
survey “Ninth Access and Internet Usage 2017” considers people over 15 years old
as strong internet users (SUBTEL, 2017), this research conducted the survey
considering participants over the Chilean legal age of 18 years old only.
6.11 Appendix: Likert scales
ABCL ONST
1= Much worse than in Chile 1= Strongly disagree
2= Somewhat worse than in Chile 2= Somewhat disagree
3= Same as in Chile 3= Neither agree nor disagree
4= Somewhat better than in Chile 4= Somewhat agree
5= Much better than in Chile 5= Strongly agree
6.12 Appendix: Turnitin Report
Turnitin report is available on Moodle.
76
Bibliography
Adeola O., B. N. A. J., 2018. Bridging Institutional Distance: An Emerging Market
Entry Strategy for Multinational Enterprises. In: W. T. Agarwal J., ed. Emerging
Issues in Global Marketing. s.l.:Springer, Cham, pp. 205-230.
Agenda Digital 2020, 2019. Agenda Digital. [Online]
Available at: http://www.agendadigital.gob.cl/#/agenda/contenido
[Accessed 12 August 2019].
Anderson, D. R. et al., 2014. Statistics for Business and Economics. 12 ed. USA:
South-Western.
Bianchi, C. & Andrews, L., 2018. "Consumer engagement with retail firms through
social media: an empirical study in Chile". International Journal of Retail &
Distribution Management, 46(4), pp. 364-385.
Bianchi, C. & Ostale, E., 2006. "Lessons learned from unsuccessful
internationalization attempts: Examples of multinational retailers in Chile". Journal
of Business Research, 59(1), pp. 140-147.
Bridges, E. & Florsheim, R., 2008. "Hedonic and utilitarian shopping goals: The
online experience". Journal of Business Research , 61(4), pp. 309-314.
Brujula, 2017. IX Encuesta de Acceso y Usos de Internet. [Online]
Available at: https://www.subtel.gob.cl/wp-
content/uploads/2018/07/Informe_Final_IX_Encuesta_Acceso_y_Usos_Internet_201
7.pdf
[Accessed 20 April 2019].
Chaffey, D., 2015. Digital Business and E-commerce Management. 6th ed.
Edinburgh Gate: Pearson Education Limited..
Chaffey, D., 2019. Online Value Proposition (OVP). [Online]
Available at: https://www.davechaffey.com/digital-marketing-glossary/online-value-
proposition-ovp/
[Accessed 15 July 2019].
CNN Chile, 2019. BancoEstado lanza CuentaRUT Visa Débito, producto para hacer
compras internacionales sin tarjeta de crédito. [Online]
Available at: https://www.cnnchile.com/economia/bancoestado-cuenta-rut-visa-
debito-compras-internacionales_20190219/
Dutta, A., 1997. The physical infrastructure for electronic commerce in developing
nations: Historical trends and the impact of privatization. International Journal of
Electronic Commerce, Volume 2, pp. 61-83.
Efendioglu, A. M., 2009. E-Commerce in Developing Countries: Impediments and
Opportunities. In: K. Rouibah, O. Khalil & A. E. Hassanien, eds. Emerging Markets
and E-Commerce in Developing Economies. New York: Hershey, pp. 131-144.
Estrategia, 2018. Estudio GfK Adimark-Mercado Libre: 74% de los consumidores
online chilenos aumentaron sus compras en el último año. [Online]
Available at: http://www.diarioestrategia.cl/texto-diario/mostrar/1040248/estudio-
gfk-adimark-mercado-libre-74-consumidores-online-chilenos-aumentaron-compras-
ultimo-ano
77
Fishbein, M. & Ajzen, I., 1975. Belief, Attitude, Intention, and Behavior. Reading:
Adisson - Wesley.
Flores, T., 2018. Logística: ¿el tema pendiente para el E-commerce local?. [Online]
Available at: https://www.latercera.com/pulso/noticia/logistica-tema-pendiente-e-
commerce-local/227820/
Hidalgo, P., Manzur, E., Olavarrieta, S. & Farías, P., 2007. "La cultura nacional y el
impacto en los negocios: El caso chileno". Estudios gerenciales, 23(105), pp. 57-67.
Hofstede, G., Hofstede, G. J. & Minkov, M., 2010. Cultures and Organizations. 3rd
ed. ed. London-New York: McGraw-Hill Professional Publishing.
Kenneth C. Laudon, C. T., 2016. E-Commerce 2016: Business, Technology, Society,
Global Edition. 12 ed. Harlow: Pearson Education Limited.
Kim, M. & Stoel, L., 2005. Salesperson roles: are online retailers meeting customer
expectations?. International Journal of Retail & Distribution Management, 33(4),
pp. 284 - 297.
Klaus, P., 2013. "The case of Amazon.com: towards a conceptual framework of
online customer service experience (OCSE) using the Emerging Consensus
technique (ECT)". Journal of Services Marketing, 27(6), pp. pp. 443 - 457.
Lever, G., 2018. Tendencias del Comercio Electrónico en Chile, Santiago - Chile:
Cámara de Comercio de Santiago.
Lever, G., 2019. Tendencias comercio electronico en Chile. [Online]
Available at: https://www.ccs.cl/estudios/docs/LEVER-ECD2018-CCS.pdf
Mac-Clure, O. & Calvo, R., 2013. Social inequalities and types of territories in Chile.
Polis , Issue En linea, p. 34.
Maheshwari, A., 2014. Business Intelligence and Data Mining. 1st ed. New York:
Business Expert Press.
Marketline, 2017. Country Statistics. [Online]
Available at: https://0-advantage-marketline-
com.lispac.lsbu.ac.uk/b2b/Macroeconomic/default.aspx?Username=EAAAAMzPQZ
cZ9QPmZYpN0eUH426dj3gSPMJifhwGKI9w8BVd&UserEmail=EAAAAPtnyLRj
nqk3znx0jagxi9snV9xzNIVtfOYvTFlI45Ai&ContractID=EAAAALL8HlPoEJ1JNX
h4%2b3GT7ziW191XZV%2bZMqr
MDS, 2018. Social Observatory, Social Development Ministry. [Online]
Available at: http://observatorio.ministeriodesarrollosocial.gob.cl/casen-
multidimensional/casen/docs/Diseno_Muestral_Casen_2017_MDS.pdf
Mercado Libre, 2019. Overview. [Online]
Available at: http://investor.mercadolibre.com/investor-relations
Oxley, J. E. Y. B., 2001. E-commerce readiness: Institutional environment and
international competitiveness. Journal of International Business Studies, Volume 32,
pp. 705-723.
Salazar, C., Moncada, C. & Cea, J., 2018. "E-commerce in Chile: what factors affect
the purchase decision?". RAN, 4(1), pp. 1-14.
78
Samaha, S., Beck, J. & Palmatier, R., 2014. The Role of Culture in International
Relationship Marketing.. Journal of Marketing, 78(5), pp. 78-98.
Santiago Chamber of Commerce, 2016. Tendencias del Retail in Chile. [Online]
Available at: https://www.ecommerceccs.cl/wp-
content/uploads/2018/08/Tendencias-del-Retail-CCS-2016.pdf
Saunders, M., Lewis, P. & Thornhill, A., 2016. Research Methods for Business
Students. Seventh edition ed. Essex: Pearson.
SBIF, 2019. Superintendencia de Bancos e Instituciones Financieras. [Online]
Available at:
https://www.sbif.cl/sbifweb/servlet/InfoFinanciera?indice=4.1&idCategoria=564&ti
pocont=568&preg=accordion6980
[Accessed 03 January 2019].
Sernac, 2014. Estudios Descriptivo del E-Commerce en Chile y Análisis de Reclamos
ante SERNAC.. [Online]
Available at: https://www.sernac.cl/portal/619/articles-4073_archivo_01.pdf
SERNAC, 2015. Estudio sobre la información que proporcionan los proveedores de
comercio elecronico en Chile desde la perspectiva del consumidor. [Online]
Available at: https://www.sernac.cl/portal/619/articles-4136_archivo_01.pdf
SERNAC, 2019. El SERNAC. [Online]
Available at: https://www.sernac.cl/portal/617/w3-propertyname-586.html
Solminihac, V. d., 2017. Primer ranking de e-commerce revela quiénes lideran el
negocio en Chile. [Online]
Available at: https://www.latercera.com/noticia/e-commerce-chile/
Statista(a), 2019. Statista(a). [Online]
Available at: https://www.statista.com/statistics/315506/online-retail-sales-in-the-
united-kingdom/
Statista, 2019. Retail e-commerce sales in Latin America from 2015 to 2020 (in
billion U.S. dollars). [Online]
Available at: https://www.statista.com/statistics/445860/retail-e-commerce-sales-
latam/
Strategic Direction, 2006. "Globalization’s winners and losers - Lessons from
retailers J.C. Penny, Home Depot, Carrefour, Ikea and others". Emerald Group
Publishing Limited 2006, 22(9), pp. 27-29.
SUBTEL, 2017. 9th Using and Accessing to Internet Survey. [Online]
Available at: https://www.subtel.gob.cl/wp-
content/uploads/2018/02/Presentacion_Final_Octava_Encuesta_Oct2017.pdf
79
SurveyMonkey, 2019. Type of survey questions. [Online]

Available at: https://www.surveymonkey.com/mp/survey-question-types/
The R Foundation, 2019. The R Project for Statistical Computing. [Online]
Available at: https://www.r-project.org/
The Santiago Times, 2018. "Chile: Hackers steal data of 14,000 credit cards before
publishing on social media". [Online]
Available at: https://santiagotimes.cl/2018/07/27/chile-hackers-publish-details-of-
14000-credit-cards-online/
UNAB, 2019. Observatorio de Logística de Distribución del Comercio Electrónico.
[Online]
Available at:
https://www.ccs.cl/estudios/docs/ObservatorioComercioElectronico(CCS-
UNAB)2.pdf
Warthon, University of Pennsylvania, 2007. "The Globalization of Chilean
Retailing". [Online]
Available at: http://knowledge.wharton.upenn.edu/article/the-globalization-of-
chilean-retailing/
Ye, J., 2019. Amazon China ends its marketplace. [Online]
Available at: https://www.abacusnews.com/big-guns/consumers-say-amazon-failed-
china-because-it-didnt-adapt/article/3006718
[Accessed July 30 2019].
80

Exploring The Factors That Influence Customers Shopping Behaviour: The Case of Online Retail Business in Chile

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Exploring The Factors That Influence Customers Shopping Behaviour: The Case of Online Retail Business in Chile

Uploaded by

Copyright:

Available Formats

Note from Module Leader – this project achieved 70%

Exploring the factors that influence

Dissertation submitted in partial fulfilment for the degree of

XXXXXX – these were deleted to anonymise the project report.

Executive summary ................................................................................................... 5

3.2 Research design: secondary sources .................................................. 16

6.11 Appendix: Likert scales ........................................................................... 76

• Shopping online from Chile versus shopping online from another

Therefore, the questionnaire required to be answered by experienced online

In order to analyse the information, several quantitative and statistical methods

The final logistic regression model considered four statistically significant

1.1 Research idea – Research questions and objectives

• What are the buying preferences of consumers in Chile?

The associated research objectives are:

II. Literature review

2.1 Conceptual framework

A conceptual framework is necessary in order to clarify some concepts that

This research considers the sell side e-commerce focused in business to

2.2 Multinationals that have failed in the e-commerce of the

There are some cases of multinationals operating in developing countries

2.3 Challenges and opportunities in the Chilean e-commerce

Chilean e-commerce presents great opportunities and big challenges for

Regarding opportunities in the Chilean e-commerce, there is an opportunity

% Mobile over e-commerce sales (Chile)

2.4 Customer relationship - Customer behaviour and

Evidence suggests a positive relation between having a good experience

communication smoothness. On the other hand, some of the psychological factors

Although the variable “Access to credit card” is important to be considered, there

Number of valid Credit and Debit Card with transactions in Chile

Number of Debit Card Number of Credit Card Total Linear (Total)

3.1 Research philosophy and research approach

This research used a pragmatism philosophy. The researcher considered

3.2 Research design: secondary sources

Primary data was collected with the purpose of evaluating comparative

3.2.1 CASEN: Description survey

Regarding sampling methods, CASEN uses a probabilistic sample. This sample

3.2.2 SUBTEL: Description survey

3.3 Research design: primary sources

3.3.1 Participants profile

The participants should meet all of the following characteristics:

3.3.2 Sampling method

Considering the characteristics of the participants required in the primary source,

Saunders suggests considering a minimum of 30 subjects for non-probability

3.3.3 Techniques and procedures

The questionnaire was made based on Chilean e-commerce aspects discussed

3. Community: Customers’ opinions and perceptions about brands and

The questionnaire consisted of 37 questions. The questions were classified in:

• ABCL: Comparison between e-commerce from abroad (AB) and e-

allowed getting the estimated probability of success related to meeting expectation of

IV. Findings, analysis and discussions of the results

E-commerce in Chile presents a thriving scenario as shown in the Figure 4. The

Figure 4: E-Commerce in Chile 2011-2017, percentage of adults.

Another important factor considered is the possession of credit/debit card.

Figure 4 reveals an important percentage of adults in Chile who do not have

On the other hand, CASEN 2017 can be analysed multidimensionally. The

Figure 5: CASEN 2017

4.2 SUBTEL: Ninth access and use of internet 2017

• had no online shopping experience,

Online shopping experience

Figure 6: Online Shopping experience

SUBTEL respondents by age and

No online shopping Online shopping, no retail Online shopping, retail