GRP - Sangam Ghimire - PA (Repaired)

FACTORS INFLUENCING ONLINE SHOPPING
BEHAVIOR OF CONSUMERS IN KATHMANDU

VALLEY
Sangam Ghimire
Exam Roll No: 17570041
PU Registration No: 2017-2-57-0041
A Graduate Research Project Report Submitted to

Ace Institute of Management
Pokhara University
Submitted for the Degree of

Master of Business Administration (MBA)
Kathmandu
January, 2021
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ACKNOWLEDGEMENTS
I express my immense feeling to those people and institutions that have throughout
extended their help in various ways in order to complete this project.
The Graduate Research Project entitled “Factors Influencing on Online Shopping

Behavior of Consumers in Kathmandu Valley” has been prepared to fulfill the partial
requirement for MBA degree of Pokhara University.
I wish to acknowledge my deep sense of gratitude to Office of Dean Faculty of

Management, Pokhara University and Ace Institute of Management for giving me
such a valuable opportunity to explore my abilities via this project.
I would like to record my sincere appreciation and gratitude towards my research

supervisor Mr. Pravat Uprety, Faculty of Ace Institute of Management, without
whose kind assistance, this project could not have been completed.
I would also like to express my gratitude towards all the respondents who cooperated
in filling up my questionnaire and responding to my queries without any hesitation.
I am also very thankful and grateful towards my seniors, colleagues and authorities of
Ace Institute of Management for their support, encouragement, and valuable
suggestions as well as for the generosity and co-operation for the completion of this
project.
Last but not the least, I would like to express my sincere thanks to all my family,
friends and well-wishers for their immense support and best wishes throughout the
project. This research have been some of the most difficult and learning phase of my
life and my perseverance and growth throughout this process is due in large part to
my wonderful support network.
Sangam Ghimire
January 2021
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CERTIFICATE OF AUTHORSHIP
I hereby declare that this submission is my own work and that, to the best of my
knowledge and belief. It contains no materials previously published or written by
another person nor material which to substantial extent has been accepted for the
award of any other degree of a university or other institutions of other higher learning,
except where due acknowledgement is made in the acknowledgements.
………………………
Sangam Ghimire
Date: 27 January, 2021

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APPROVAL SHEET
Recommendation for Approval
This GRP report prepared and submitted by Sangam Ghimire in partial fulfillment of
the requirement for the degree of Master of Business Administration has been
supervised by me and I recommend it for acceptance.
…………...……….
Mr. Pravat Uprety
Date:
Acceptance of the External Evaluator
I approve the GRP submitted by Sangam Ghimire. The grade sheet has been
submitted to the Dean, School of Business, Pokhara University through the college on
a separate evaluation sheet.
…………...……….
External Evaluator
Date:
Viva Examination
Mr. Sangam Ghimire has successfully defended the GRP. We recommend it for
acceptance. The grade sheet has been submitted to the Dean, Pokhara University
through the college on a separate evaluation sheet.
External Examiner ………………………
GRP Advisor ….………………….
Internal Examiner ......................
Date:
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ABBREVIATIONS
ADSL : Asymmetric Digital Subscriber Line
B2B : Business-to-Business
M : Mean
MS : Microsoft
OLS : Ordinary Least Square
PEOU : Perceived Ease of Use
PU : Perceived Usefulness
S.D : Standard Deviation
SET : Secured Electronic Transaction
SLC : School Leaving Certificate
SPSS : Statistical Package for Social Scientists
TAM : Technology acceptance model
TPB : Theory of planned behavior
VIF : Variance Inflation Factor

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TABLE OF CONTENTS
ACKNOWLEDGEMENTS ......................................................................................... i
CERTIFICATE OF AUTHORSHIP ........................................................................... ii
ABBREVIATIONS ................................................................................................... iii
TABLE OF CONTENTS............................................................................................ v
LIST OF TABLES ................................................................................................... vii
LIST OF FIGURES ................................................................................................. viii
EXECUTIVE SUMMARY........................................................................................ ix
CHAPTER 1............................................................................................................... 1
INTRODUCTION ...................................................................................................... 1
Background of the Study ............................................................................................ 1
Statement of the Problem ............................................................................................ 3
Objectives of the Research.......................................................................................... 4
Research Hypothesis................................................................................................... 4
Significance of the Study ............................................................................................ 5
Limitation of the Study ............................................................................................... 6
Organization of the Study ........................................................................................... 6
CHAPTER II .............................................................................................................. 8
LITERATURE REVIEW & THEORETICAL FRAMEWORK .................................. 8
Review of Related Literature ...................................................................................... 8
Theoretical Framework ............................................................................................. 16
Specifications on the Variables ................................................................................. 17
CHAPTRER III ........................................................................................................ 20
RESEARCH DESIGN AND METHODOLOGY ...................................................... 20
Research Methodology ............................................................................................. 20
Research Design and Plan ......................................................................................... 20
Population and Sample Size Determination .............................................................. 20
Population ........................................................................................................ 20
Sample Size ...................................................................................................... 21
Data Collection Procedure ........................................................................................ 21
Instrumentation of Data ............................................................................................ 21
Reliability and Validity of Data ................................................................................ 22
Data Analysis Plan ................................................................................................... 23
CHAPTER IV .......................................................................................................... 24
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ANALYSIS AND RESULTS ................................................................................... 24

Demographic Profile of the Respondents .................................................................. 25
Descriptive Analysis ................................................................................................. 27
Independent Sample T test ........................................................................................ 36
One-Way ANOVA ................................................................................................... 37
Correlation Analysis ................................................................................................. 39
Regression Analysis ................................................................................................. 41
Summary of Hypothesis............................................................................................ 43
CHAPTER V............................................................................................................ 43
SUMMARY AND CONCLUSION .......................................................................... 44
Summary of Major Findings ..................................................................................... 44
Conclusion ............................................................................................................... 45
Recommendation ...................................................................................................... 47
REFERENCES ......................................................................................................... 49
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LIST OF TABLES
Table 4. 1: Distribution of Respondents Based on Gender ........................................ 25

Table 4. 2: Distribution of Respondents Based on Age............................................. 25
Table 4. 3: Distribution of Respondents Based on Income ....................................... 26
Table 4. 4: Distribution of Respondents Based on Education Level.......................... 27
Table 4. 5: Descriptive Statistics of E-commerce Knowledge Factor........................ 29
Table 4. 6: Distribution by Convenience .................................................................. 30
Table 4. 7 : Distribution by Security Factor.............................................................. 32
Table 4. 8: Distribution by Product Variety.............................................................. 33
Table 4. 9: Distribution by Time .............................................................................. 34
Table 4. 10: Distribution by Consumer Behavior of Online Shopping ...................... 35
Table 4. 11: Analysis of Online Shopping Behavior on the Basis of Gender ............ 36
Table 4. 12: Analysis of Consumer Shopping Behavior of Online Shopping on the
Basis of Age Group.......................................................................................... 37
Basis of Education ........................................................................................... 37
Basis of Income Level...................................................................................... 38
Table 4. 15: Correlation between Online Shopping Factor and Consumer Behavior . 39
Table 4. 16 : Regression Analysis of Variables ........................................................ 41
Table 4. 17: Summary of Hypothesis ....................................................................... 43
viii
LIST OF FIGURE
Figure 2. 1: Theoretical Framework ......................................................................... 17

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EXECUTIVE SUMMARY
Online shopping has become a popular way for buyers. It is the process of shopping
goods and services from merchants who trade on the online. Online shopping has
gained a very significant position in the 21st century as most of the people are busy,
loaded with their hectic schedule. In such a circumstances online shopping became
the easiest and most appropriate mode for their shopping. Internet has changed the
way of doing business, and has rapidly developed into a global perspective. It is the
process where an online shop arouses the physical similarity of shopping products as
well as services from internet shop. This study aims to examine the various factors
that influence behavior of customers on online shopping in Kathmandu. This study
shows the utmost importance of convenience and security to influence the online
shopping behavior of customer in Kathmandu valley. This study is based on the core
dimensions of consumer shopping behavior for online shopping i.e. e-commerce
knowledge, convenience, security, product variety and time saving.
The study has employed descriptive and quantitative research design to estimate the
impact between dependent variable (online shopping behavior of consumer) with
independent variables (e-commerce knowledge, convenience, security, product
variety and time saving). The study is based on primary sources of data. The primary
data are used to extract the information from the online buyers regarding the factors
that influence their shopping behavior. To achieve the purpose of the study structured
questionnaire was prepared and distributed. Altogether 121 questionnaires were
collected from the respondent for the study. The findings of the study are helpful to
online marketer for the development of the marketing strategies, understand
individual consumer decision making on purchasing online and enable better match
their customers’ desires with their offer. For consumer’s point of view they will
realize the essence of online purchasing, become aware about the important trend in
this modern information technology society.
The result showed the positive impact of convenience and security with online
shopping behavior of the customer whereas e-commerce knowledge, product variety
and time saving have no significant impact with online shopping behavior of the
customer in Kathmandu valley. This study shows that customer feels convenient to
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purchase via online as they get the right product in the right time, can order the
product at anytime from any place also they can overcome the barriers of traditional
shopping through the online shopping. It is also revealed that customer have the
security issue to fully trust upon the online shopping like identity threat, misleading
product, non refund policy etc. Thus, customers are willing the do online shopping if
there is no any security threat for the customer. Based on the correlation analysis there
is positive relationship between every e-commerce factor i.e. e-commerce knowledge,
convenience, security, product variety and time saving on the online shopping
behavior of consumer in Kathmandu valley. The outcome illustrates that e-retailers
should consider these dimensions in developing and marketing their product to
influence the shopping decision of their target customer. Furthermore e-retailer should
take special measures to eliminate the psychological factor like security issue,
perceive ease of use issue to build trust in the online retail form and ensure the
privacy of online consumers.
The findings of this study are also supported by Jha (2018) which shows the positive
impact of e-commerce knowledge, convenience, product variety, security and time
saving on online shopping behavior of customer in Koteshwor. Similarly on the word
of Vaghela (2017) convenience is one of the major reasons behind the customer to do
online shopping as it is very easy to find the product and purchases it from the
internet. Shakya (2018) believes that security has an important role in determining
online consumer shopping behavior.
Keywords: convenience, e-commerce knowledge, online shopping, product variety,

security, time saving.
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CHAPTER I
INTRODUCTION
Background of the Study
Consumer behavior is the study of individuals, groups, or organizations and all the
activities associated with the purchase, make use of and disposal of goods and
services, including the consumer's emotional, mental and behavioral responses that
precede or follow these activities.
Consumer behavior examines how emotions, attitudes and preferences influence

shopping behavior of the consumers who consume products and service.
Characteristics of consumers such as demographics, personality, lifestyles and
behavioral variables are important to understand people's wants and consumption
pattern.
As mentioned by Kotler and Kartajaya (2010), consumer behavior is a study of how

individuals build decisions to use up their available resources (time, money and
effort) on consumption related items. The consumer’s needs, beliefs, attitudes, the
availability of brands and products all have an effect on shopping behavior of
customers apart from various other elements like influence of family and friends,
price, place of availability, promotion, brand of the product, retailers quality etc. The
success or failure of a product is directly related to the shopping behavior of the
customers.
It is the process and study of individuals, groups, or organizations and they use to
select, secure, use, and dispose of products, services, experiences, or ideas to satisfy
their needs and wants. It is concerned with the social and economic impacts that
purchasing and consumption behavior has on both the individual consumer and on
broader society.
Dommeyer and Gross (2003) explained that the study of consumer behavior is
concerned with all aspects of purchasing behavior from pre-purchase activities
through to post-purchase consumption and evaluation activities. It is also concerned
with all persons involved in purchasing decisions and consumption activities either
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directly or indirectly, including brand-influencers and opinion leaders. As per research

conducted by many researchers consumer behavior is difficult to predict even for
experts in the field as there exist various factors. However, new research methods
such as ethnography and consumer neuroscience are shedding new light on how
consumers make decisions.
Online shopping is a form of e-commerce which facilitates consumers to directly

purchase goods or services from a seller by using the Internet. Other names are: e-
shop, e-store, Internet shop, web-store, virtual store and online store. An online shop
stirs the actual closeness of shopping items just as traditional form but through the
web site and this process of shopping is called internet shopping.
Internet has developed into a innovative channels for many products. To shop online
the use of internet has become a primary reason, combined with searching of
products and finding information about them. As a result, internet has developed a
highly competitive market, where the competition over consumers is severe.
Online shopping has made life simple and innovative for individuals and groups.
Consumer behavior in online shopping is different from the physical market where
one has access to see the product. Ecommerce is trending nowadays, e commerce
made the shoppers far easy to have their choice of products conveniently from their
residence or workplace.
There are many factors influences and affect customers in related to how consumers
make online purchasing decision. As per Kotler and Armstrong (2004), there are nine
factors that affect online purchasing decision of consumers. They are search engine,
auction websites, online shopping malls, conveniences, price, brand, refund
promotion, purchase intention, advertisements and security.
The main purpose of the research is to study the consumer behavior towards online
shopping in Kathmandu. Kathmandu is very busy metropolitan city where people do
not have enough time to go out for shopping. Primary data was collected through the
questionnaire survey and by emails from personal contacts in Kathmandu City.
The idea for this thesis evolved since development of ecommerce is growing in Nepal.
In addition, there are many youngster who aspired to become an online entrepreneur
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and having said that there is a broad scope of online entrepreneurship in Nepal, where
there is less competitive pressure due to the very few existing ecommerce companies.
It is very essential to understand the complexity and difficulties of online

entrepreneurship in a country like Nepal and also believe there are ways to address
such issues and to become successful. This thesis gives an overview of the consumer
behavior of the youths shopping online in Kathmandu, Nepal. With very limited
resources and information concerning the ecommerce market in Nepal, research is
focused on the empirical findings to meet the objectives of the thesis.
Statement of the Problem
For a company providing online sales at any given time there are millions of people
over online and each of them is a potential customer for the business. Due to the rapid
growth of the technologies surrounding the Internet, online company will constantly
have to search for an edge to sustain the fierce competition. To attract and retain the
huge number of potential customers, it is very crucial to understand the behaviour of
consumer.
The importance of analyzing and identifying factors that influence the consumer when
he or she decides to purchase on the Internet is vital. Since the Internet is a new
medium for there have been new demands set by the consumer. That is why it is
crucial for the online retailers to know what influences the online consumer.
It is not a new phenomenon to analyze consumer behavior. The renowned marketing

expert Philip Kotler had published several books that well describe the consumer
buying behavior. Several theories had been developed related to the consumer
behavior. These theories have been adopted for educational as well as business sectors
for many years to understand the consumer behavior, and also to create a marketing
strategy to manage the consumer efficiently. Thus, analyzing the consumer behavior
is closely related to the directions a company will take with their marketing strategy.
These theories can also be adopted to classify the online consumer and to create
certain consumer segments. However, some distinctions must still be made when
considering traditional consumer behavior and online consumer behavior.
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Since online shopping is a new shopping medium and online consumer behavior is
different from traditional consumer behavior, thus online retailer make an effort to
identify the factors that influences the online consumer. There are certain factors that
customer considers while making the online purchase decision, analyzing the process
that the online consumer goes through when deciding and making a purchase over the
Internet, provides some hints regards the online buying behavior. Thus, these factors
need to be identified and taken into account by online retailers in order to meet the
consumer demands and also to compete in this competitive market. Hence, the major
research questions regarding this study are:
 Is there any impact of e-commerce knowledge, convenience, security, product

variety and time on online shopping behavior of consumer in Kathmandu
valley?
 What is the moderating effect of demographic variables in between the factor

affecting online shopping (e-commerce knowledge, convenience security,
product variety, and time) and consumer shopping behavior?
Objectives of the Study
The main objective of this study is to examine several factors that impact consumers
on online shopping decision making.
Apart from the major objective, other specific objectives are:
 To identify the most influencing factor for buying behavior of consumer in

online shopping.
 To examine the relationship between the determinants and consumer buying

behavior.
Research Hypothesis
Based on various previous literatures six hypotheses are taken into consideration in
order to show the relationship between the variables while conducting research. It
helps to check whether there exist relationships among various variables or not. It is
set to study the association among the independent variable such as e-commerce
5
knowledge, perceived ease of use and perceived risk with dependent variable
consumer behavior on online shopping. It also shows the relationships of moderating
variables such as age, gender, income level and educational attainment with that of
dependent variables and independent variable It is also used to know whether the
relationship between various variables in the study is statistically significant or not.
H1: There is significant impact between e-commerce knowledge and consumer’s

online buying behavior.
H2: There is significant impact between convenience and consumer’s online buying
behavior.
H3: There is significant impact between Security and consumer’s online buying
behavior.
H4: There is significant impact between Product Variety available and consumer’s
online buying behavior.
H5: There is significant impact between saving time and consumer’s online buying
behavior.
H6: There is significant impact between age and consumer’s online buying behavior
within Kathmandu valley.
H7: There is significant impact between gender and consumer’s online buying
behavior within Kathmandu valley.
H8: There is significant impact between education and consumer’s online buying
H9: There is significant impact between income level and consumer’s online buying
Significance of the Study
It is very likely that the E-commerce industry is getting importance in economy of

country like Nepal. To capitalized opportunities and develop strategies to deal with
challenges that are prevailing in Nepali E-commerce market online stores have to
6
consider all those factors affect online shopping behavior. Study of various factors
that have an impact on online shopping is helpful for the organization to understand
the association between factors and consumer shopping behavior in their online
business. With these understanding companies are in better position to develop
strategies for their potential consumes. In this context, research is aimed to investigate
the various factors affecting online shopping in Kathmandu city.
Limitations of the Study
Some limitations of this study are:
 The study is based on socio-demographic variables.
 The survey is based on self-reported data, which might suffer from social
desirability issues i.e. results might be influenced by people
misunderstanding the questions or knowingly or unknowingly giving
inaccurate information.
 Due to the number of sample size, the generalization of the outcome may
not be applicable.
Organization of the Study
The research report consists of three major sections: preliminary report, body and
supplementary.
The preliminary part include title page, certification, declaration of authenticity,

acknowledgements, table of contents, list of tables, list of figures, common
abbreviations used in the report and executive summary.
The body or main part of the report includes five sections: introduction, related
literature and theoretical framework, research methods, analysis and results, and
discussions, conclusion and implications. Each chapter has its own specific aspects.
Supplementary part has references and appendices of the research report.
Chapter I: Introduction
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This chapter presents a general introduction to the topic “Factors Influencing Online
Shopping Behavior of Consumers. It also explores and discusses the problem
statement, objectives, hypotheses, significance of the study and finally outlines the
limitations of the study.
Chapter II: Literature Review and Theoretical Framework
This chapter include the reviewed literature that is be done through various sources
such as books, newspapers, journals; websites in a global context, as well as the
review of studies in Nepalese context also. The chapter further consists of theoretical
framework which explains the relationship between the dependent variable and
independent variable with the presence of moderating variable.
Chapter III: Research Design and Methodology
This chapter presents the research methods that are adopted for the study consisting
introduction, research design, sources of data, data collecting and processing
procedure as well as tool and techniques in the study.
Chapter IV: Analysis and Results
This chapter deals with the analysis and presentation of data using quantitative and
qualitative methods with the assistance of statistical models. The SPSS and MS-
EXCEL software is used for data analysis and interpretation accordingly.
Chapter V: Summary and Conclusion
This chapter includes major findings, conclusions, discussions and further

implications for the study.
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CHAPTER II
LITERATURE REVIEW & THEORETICAL FRAMEWORK
Review of Related Literature
Literature review involves study of past research papers and the essential information
that is required and help to conduct this research paper. This chapter is divided into
two different sections. First section consists of review of literatures and second
section consists of theoretical framework.
E-commerce
Introduction of E-commerce
E-commerce includes the use of the internet, The World Wide Web (Web), mobile
apps and browsers running on mobile devices to transact the businesses. It is digitally
enabled commercial transactions between and among organizations and individuals
(Laudon & Traver 2017).
The Internet is a worldwide network of computer networks and the web is one of the
internet’s most popular services, enabling access to unlimited web pages worldwide
and digitally enabled transactions include all the transactions arbitrated by digital
technology (Laudon & Traver 2017).
Ecommerce is part of e-business and e-business is a wide and detailed concept which
includes purchasing and selling goods, services or information over the internet and
other telecommunications network. In addition, other activities such as publishing
information, scheduling, distribution, advertising, payment and services are also parts
of e-business. Furthermore, distinguishing factors include money related factors.
Ecommerce includes all the transactions related to money and monetary items, but e-
business includes monetary as well as allied activities.
Ecommerce needs a website through which business can be represented. E-business

requires a website, customer relationship management and enterprise resource
planning to conduct the business over the internet. Ecommerce requires and uses only
internet to connect with the rest of the world but e-business apart from internet,
9
requires intranet and extranet for connecting with different parties (Albaum & Duerr
2011).
E-commerce in Nepal
Although, developed countries have embraced ecommerce at a brisk pace, developing

countries like Nepal are slowly on their way to match up the ecommerce trend and in
case of Nepal, there is a big influence and arrival of new technologies from two
neighboring countries India and China. Online shopping is covering the Nepalese
market at a brisk pace and is well facilitated with the introduction of new
technologies, digital stores and interactive apps.
The history of Nepalese ecommerce dates to 1999, initially used especially by

Nepalese living in the US to send gifts to their friends and families living in Nepal.
However, the internet access was limited and expensive. This era was one of the dark
age for Nepalese ecommerce market, where global ecommerce companies were
reconstructing after the major internet bubble burst that took place in 1999/2000
(Website of Nep Commerce 2017).
With the introduction of ADSL (Asymmetric digital subscriber line) broadband

internet by the Nepal telecom, one of the government owned telecom enterprises,
people could switch from sound making; snail speed dial-ups internet to
comparatively faster ADSL broadband internet, which helped in eradicating
expensive telephone bills from their monthly budget. So, after more than two decades,
after the first ecommerce company was launched in the world, ecommerce in Nepal
has grown almost by 1200percent and there are not any negative signs to slow the
development of ecommerce for the next 5- 8 years. Investing in internet technologies
and ecommerce is providing undoubted strengths to small/ medium enterprises and
startups to make their business bigger by reaching to customers in wider geographical
regions (Website of Nep Commerce 2017).
Compared to other developing countries, the internet had a late inception in Nepal. As
of January 2015, there were 47 internet service providers, with about 100,224
accounts. 30percent of the total accounts were commercial, as the trend of businesses
using the internet to promote their products and services and communicate with
foreign businesses including airlines, hotels and travel agencies is growing strongly.
10
Although, main activities are concentrated in Kathmandu, the capital city, there are
half a dozen other cities where the activities are made. Although the business
activities conducted via online are relatively small, the market is advancing. As of
May 2014, out of 42,748 registered websites, 30,198 were commercial websites.
Majority of ecommerce websites are placed outside Nepal where credit card
verifications are available. Credit card transfers and e-banking transfers are accepted
with these ecommerce websites located outside Nepal. Unfortunately, Nepalese who
don’t hold any dollar account cannot make payments in foreign currency since foreign
exchange is regulated and is not freely available. There are few B2B (business-to-
business) websites like muncha.com, thamelmall.com and bitarak.com. These
websites are primarily used to deliver gifts during religious festivals. The most
frequent users are Nepalese residing abroad and the delivery of goods is done within
the territory of Nepal.
Nepalese Online Shoppers
E-commerce industry is still in its infancy stage in Nepal. At present, major

ecommerce ventures have been providing their services to few cities only including
Pokhara and Kathmandu. According to the Kathmandu Post, Nepalese residing in the
country are increasingly enthusiastic in shopping in the cyberspace. Rocketing
internet penetration and greater awareness about different internet ventures have
motivated the locals to shop for different goods and services via the virtual malls. The
need of touching the actual product while shopping is changing dramatically and
people are becoming tech savvy so nowadays, information available about the brand
is becoming an important factor in shopping decision process among the Nepalese
people (Gautam, 2015).
In order to understand the impact of various factors on consumer’s online shopping

behavior, it is also essential to review some important theories which are the basis of
the study.
One of them is consumer shopping behavior process which helps in understanding

what influence consumer to purchase online. Consumers start with some kind of need
or a problem that arouse some or the other way which needs to be filled and then
11
move towards information search and finally purchase products/services. This

shopping process helps in explaining the steps one follows to reach to actual purchase.
Theory of planned behavior (TPB) proposed by Icek (1991) as an extension to Theory

of Reasoned Action. It helps to understand how one can change the behavior of
people. This theory will be helpful in understanding how consumer changes their
behavior to shop online than physical store purchases.
Technology acceptance model (TAM) developed by (Davis 1989) is an information

system theory that sets out to study the users acceptance towards particular system. As
online shopping is a modern technology and this research study different factors that
influence consumers while shopping such as website design, convenience, security
and other various factors. TAM helps to understand how consumer forms attitudes
towards particular system i.e. online shopping.
Online Shopping
Online shopping is a process of selling and shopping of goods and services on World
Wide Web. As per Forsythe and Shi (2003) internet shopping has become the fastest
growing use of the internet; most online consumers, however, use information
gathered online to make purchases off-line.
According to a report (ACNielsen Report on Global Consumer Attitudes towards

Online Shopping, 2005), one tenth of the world population is shopping online , till
October 2005, 627 million people have done online shopping , and according to the
same report Germans and British are on the top of the list on online shopping.
Additionally report (ACNielsen Report on Global Consumer Attitudes towards Online

Shopping, 2005) confirmed that products most purchased online are books on the top
followed by DVD/Video/Games and Plane Reservations, the payment method that is
being used mostly is Credit Card. As above stats confirms internet activity as growing
fast and Sweden has always been on high heels in Internet Usage and online Shopping
in Europe. According to a report on (ACNielsen Report on Global Consumer
Attitudes towards Online Shopping, 2005) showed that on the list of top 20 internet
purchaser countries Sweden is on number nine following Japan and USA.
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Factors Influencing Consumer to Shop Online
There are many factors influences and affect customers in related to how consumers
make online purchasing decision. The purchasing decision process starts long before
actual purchase and continues long after. Usually in more routine purchases,
consumers often reserve or skip some of purchase decision process (Kotler &
Armstrong, 2004). The various factors that influence consumer to shop online are as
follows:
 E-commerce Knowledge
E-commerce is a tool for reducing administrative costs and cycle time, streaming
business processes, and improving relationships with both business partners and
customers (Charles, 1998).
The Internet and electronic commerce were the two most significant development of
information during 1990s. There has been a marked increase in the number of
consumers who purchase over the Internet, as well as an increase in sales worldwide
conducted via electronic commerce.
Innovation and electronic commerce relationships have resulted in tremendous

changes in market competition among various industries (Blosch, 2000; Hamid &
Kassim, 2004). In order to purchase online, one must have knowledge about e-
commerce. E-commerce knowledge includes idea of websites of online stores.
 Website Quality
Website design and online shopping activity is one of the vital influencing factors of
online shopping. Website quality is depending on dimension of quality. High quality
website has dimension of timeliness, accuracy and consistency and performance.
Timeliness means the websites change often and rapidly. Accuracy and consistency
answer the question where the data presented to the user accurate enough. Good
performance means the browser connection quick to respond to an e-commerce
purchase.
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As mentioned by Shergill and Chen (2005) website design, website reliability

fulfillment, website customer service and website security/privacy are the most
attractive features which influence the perception of the consumer of online shopping.
Kamariah and Salwani (2005) claimed that the higher website quality, the higher
consumer intends to shop from internet. Web design quality has important impacts on
consumer choice of electronic stores, stated by Liang and Lai (2000). Website design
one of the important factor motivating consumers for online shopping. Almost
100,000 on-line shoppers surveyed showed that web site design was rated as
important factor for online shopping.
Another study conducted by Zhang and Dran (2000) indicated that website design
features of the website are important and influencing factors that leads consumer’s
satisfaction and dissatisfaction with a specific website. A study conducted by Yasmin
and Nik (2010) showed a significant relationship between online shopping activity
and website features.
 Convenience
Convenience factor refers that it is easy to browse or search the information through
online than the traditional retail shopping. Through online, consumers can easily
search product catalog but if the consumer look generally for the same product or item
in a traditional store manually; it is difficult to visit physically and time consuming
also. Convenience has always been a prime factor for consumers to shop online.
Darian (1987) mentioned that online shoppers carry multiple benefits in terms of
convenience, such as less time consuming, flexibility, very less physical effort etc.
Bhatnagar and Ghose (2004) claimed that convenience is one of the most important
advantages for online shopping.
According to the Robinson, Riley, Rettie and Wilsonz (2007) the major motivation for
online purchasing is convince in terms of shop at any time and having bundles of
items delivered at door step. Rohm and Swaminathan (2004) claimed that in
“typology of online shoppers into”, convenience shoppers, balanced buyers, variety
seekers and store-oriented shoppers, based upon their preset shopping motivation.
Rohm and Swaminathan (2004) found that 'convenience and variety seeking’ are
14
major motivating factors of online shopping and this study is consistent with
Morganosky and Cude (2000) research findings.
Webcheck (1999) study also showed that convenience factor is one of the biggest
advantages of online shopping. Through online purchase consumers can easily
compare the price than the traditional purchase. So price comparison is also another
convenience factor of online shopping.
Convenience and saved time were offered by online shopping which were two
motivating factors for online purchases. The main reason that motivated consumers to
shop online was conveniences (Rohm & Swaminathan 2004). Convenient access to
product information could facilitate and help shoppers’ making an online purchases
decision.
 Time
Time is one of most influencing factors of online shopping. Browse or search an

online catalogue can save time and patience. People can save time and can reduce
effort by shopping online.
According to Rohm and Swaminathan (2004), one possible explanation that online
shopping saves time during the purchasing of goods and it can eliminate the traveling
time required to go to the traditional store. On the other side, some respondent think
that it is also time taken for delivery of goods or services over online shopping.
Unexpectedly time saving is not the motivating factor for the consumers to shop
online (Corbett, 2001) because it takes time receiving goods or delivery. But time
saving factor can be seen through different dimensions i.e. “person living in Florida
can shop at Harod’s in London (through the web) in less time than it takes to visit the
local Burdines department store”.
Morganosky and Cude (2000) concluded that time saving factor was reported to be
primary reason among those consumers who have already experienced the online
grocery shopping. So the importance of the time saving factor cannot be neglected as
motivation behind online purchasing. Additionally Goldsmith and Bridges (2000)
emphasized that there is a discrimination between online shopper and non online
shoppers, online shoppers are more worried about convenience, time saving and
15
selection whereas non online shoppers are worried about security, privacy and on time
delivery.
 Price
As per Heim and Sinha (2001) price was a critical factor for customer on online
shopping. However, Li et al. (1999) argued that often online shoppers were not price-
sensitive because of these consumers’ price comparisons among different e-retailers
on each product was time consuming and the price difference was very small.
Price of the product being an important factor affecting online shopping behavior,
prices of the web store should not be higher than those of the physical stores. As per
Vrechopoulos et al. (2001) internet shoppers don‘t prefer to buy online as the prices
are higher. Customer seeks abundant choice and low price from online stores (Khan et
al., 2015).
Retailers offer buy online, pick offline offer to customers in order to achieve low
price which also allow consumers to save shipping and handling fees (Kukar-Kinney
& Close, 2010). A reduction in delivery cost increase willingness to buy from e-shop
(Liao & Cheung, 2001).
Online stores offer discounts, as consumer prefer price promotions over everyday low
pricing because it gives them greater sense of economic control and gain (Helander &
Khalid, 2000). Companies offer slow service at lower or no cost to any location to tap
price sensitive buyers (Keeney, 1999). Online retailers attempt to differentiate their
products or services to mitigate price-comparisons less meaningful. (Li et al. 1999).
 Security
Security is another dominant factor which affects consumers to shop online. However
many internet users avoid online shopping because of credit card fraud, privacy
factors, non delivery risk, post purchase service and so on. But transaction security on
the online shopping has received attention. Safe and secured transaction of money and
credit card information increases trust and decreases transaction risk.
In 1995, UK has introduced Fraud free electronic shopping and later on Europe and
Singapore introduced secured electronic transaction (SET). According to Bhatnagar
16
and Ghose (2004) security is one of the attribute which limits shopping on the web as
they claim that there is a large segment of internet shoppers who don’t like to buy
online because of their thinking about the security of their sensitive information.
Cuneyt and Gautam (2004) claimed that trust in the internet shopping with advanced
technology, and frequent online shopping to the internet being secured as a
trustworthy shopping channel.
Belanger, Hiller, and Smith (2002) concluded that a large segment of internet users
have serious concerns of security. Security was a critical successful factor for e-
commerce. Retail e-commerce would fail if Internet users feel on lacking a great
degree of confidence (Kesh et al., 2002). The primary reason indicated of the most
buyers who didn’t shop online cause of afraid to reveal personal credit card
information to retailers or over the internet.
 Refund
Online consumers demanded that online stores should provide an unconditional

refund policy if the online costumer were not satisfied with the product. Online stores
should have refund policies to convince online consumers that they easily return
products and get refunds if they are not satisfied, or exchange products for free within
a reasonable timeframe (Bishop, 1998).
 Promotion
Online stores might use promotions with time limits to encourage consumers to shop
on Website (Haig, 2001). However, promotional activities for online products or
services were not successful for online stores because there was not effective ways to
inform consumers of promotional activities. In the 21st century, advertisement of
products and services are essential to create the image for longer period of time and it
helps to remain in top of mind of consumers.
Theoretical Framework
The given figure shows the independent and dependent variables. A factor or
phenomenon that is changed by the effect of an associated factor or phenomenon
called the independent variable. A dependent variable is a variable whose value
depends upon independent variables. The dependent variable is what is being
17
measured in an experiment or evaluated in a mathematical equation. The dependent

variable is sometimes called “the outcome variable”. All the factors
Here are independent variables and consumer behavior on online shopping is

dependent variables.
Independent Variables
E commerce knowledge
Convenience
Dependent Variable
Security
Consumer Behavior on
Online Shopping
Product Variety
Moderating Variables
 Age Group
Time
 Gender
 Education level
 Monthly
Income
Figure 2. 1: Theoretical Framework INCOMEIInco
me
Specifications on the Variables
Independent Variables
 E-commerce Knowledge
E-commerce knowledge is essential in order to purchase products and services

online efficiently and effectively. This study uses to measure e-commerce
knowledge; where the respondents were asked to scale how often they have
engaged in a number of stated behaviors.
18
 Convenience
People prefer to use any technology or any system easily. This study uses the
different items to measure convenience; where the respondents were asked to
scale how often they have been engaged in a number of different behaviors.
 Security
Risk factor is associated with each and every transaction. This study uses to
measure Security; where the respondents were asked to scale how often they
have engaged in a number of stated behaviors.
 Product Variety
Product variety is the quantities of different product types provided by the

online retailer. The consumer make the purchase decision by comparing the
substitute products so the online retailer should provide different product types
and a diverse range when they are being sold online.
 Time
Time is another main issue in today society. People often find that they have
their hands full with too much work too much things too be done and not
enough time to be actually able to do them. The greater the pressure and time
constraint on a customer, the more they became impatient. This can be a
contributing factor for online shopping.
Moderating Variables:
These variables are the demographic and general variables like age, gender,
education, income level and occupation. These are also the personal information of
the respondents in this research work
 Age
The age of the respondents in this study is above 15 years.
 Gender
The respondents are categorized as male and female.

19
 Educational Attainment
The respondents are categorized according to the educational attainment i.e

SLC, +2, bachelor as well as master degree and above.
 Income
The income of the respondents range observed for the study.
Dependent Variable
 Consumer Behavior on Online Shopping
Consumer behavior may differ on the basis of various factors, time and
circumstances. Online shopping is slowly and gradually increasing day by day due to
introduction of advanced and modern technology.
20
CHAPTER III
RESEARCH METHODOLOGY
Research Methodology
Research methodology gives a master framework for the study. It is the specific
procedures or techniques used to identify, select, process, and analyzes information
about a topic. This chapter pictures the whole idea of how the research is conducted.
This research plan covers the research design and plan, population and sample size
determination, data collection procedure, instrumentation of data, data analysis
method, reliability and validity of data.
Research Design and Plan
It determines the set of methods and procedures that has been be used in collecting
and analyzing measures of the variables specified in the problem research. The
research design applied to the study is quantitative research design.
Descriptive analysis and inferential research techniques are used to tap the
relationship between the factors in influencing the online shopping behavior of
consumer within Kathmandu valley. The data collection is executed through a
structured questionnaire with an online form to meet the research objectives. Self-
administered survey is implemented with the help of the finalized questionnaire.
Likewise, the results are based on the data and facts provided by the sampled
respondents. The instruments used for this research is considered reliable.
Quantitative data has been collected in Likert scale so that consumer’s response could
be quantified and measure easily in an unbiased manner using a statistical model viz.
SPSS v20, and Microsoft Excel.
Population and Sample Size Determination

Population
This study deliberates to measure the factors that affect the online shopping behavior
of the consumer within Kathmandu valley. The study used convenience sampling to
track the respondents for the study. The sampling technique generally assumes a
21
homogeneous population that means the member of population poses similar

characteristics.
Sample Size
For the analysis of the factors that affect the online shopping behavior of the
consumer within Kathmandu valley, questionnaires were passed on to the 121
respondents. The data collection has been completely based on online survey system
i.e. Google form. For data collection, convenience sampling method has been used
under non-random sampling method. Therefore, samples of 121 respondents were
selected from the total online shopping customer of Kathmandu valley.
Data Collection Procedure
This research is purely based on academic purposes so; a proper procedure is

conducted to carry out the research work. This segment explains on how data has
been collected for this study purpose. There are all altogether 121 respondents. For
the data collection, a structured questionnaire was prepared by following various
processes. The overall data collection procedure includes the following stages:
identification (Literature review, preliminary questionnaire preparation, and approval
of the questionnaire, finalization of the questionnaire, and collection of the data
through a questionnaire on the Google docs.
Instrumentation of Data
The primary data were used to identify the factors influencing online shopping
behaviors of consumers within Kathmandu valley. The survey questionnaire is
divided into two parts. Part I highlights the respondents’ demographic data such as,
age, gender, education and monthly income.
The second part consists of the questions on the perception of respondents on the two
constructs: Factors influencing online shopping and consumer shopping behavior. 23-
item questions were generated. The 5-point Likert scale was used for the survey of
which 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, and 5=Strongly Agree.
All the data gathered were considered for analysis using the SPSS and Microsoft
Excel. The first part consisting of the demographic data was analyzed using the
22
frequency and percentages while for the second part, correlation matrix, regression,
mean and standard deviation were used.
For the data analysis, SPSS tool has been used to tabulate and analyze the valid
responses. Different statistical tools such as frequencies, percentage, and mean,
median, standard deviation and correlation and regression analysis has been applied in
determining which of the factors affects the online shopping behavior of consumer
within Kathmandu valley. Microsoft excel sheet was also used for the calculation of
the average scores and used for the data collection procedure and tables as required.
Reliability and Validity of Data
Reliability is the measure of testing the constituency. The measurement is considered

reliable if the same result is consistently achieved by using the same methods under
the same circumstances. Validity refers to how accurately a method measures what it
is intended to measure.
The reliability is determined through Cronbach’s alpha which measure the internal
consistency, i.e., how closely related a set of items are as a group. And, this study
followed the same method. It has been used in this study to test the validity and
reliability of the primary data for determining internal consistency among the various
factors which affects online shopping behavior of the consumer within Kathmandu
valley.
To test the validity, the questionnaire was examined as to construct validity to

ascertain that all components that should be measured has considered and pretested to
few people to make sure that the questionnaire attend the degree of fairness and
accuracy. Reliability test for all the components of questionnaire was computed
through SPSS. Cronbach alpha coefficient value more than 0.6 is consider as the
reliable and validate for further processing.
23
Table 3. 1 Coefficient of Cronbach’s Alpha
Variables Cronbach’s alpha Remarks
E-commerce knowledge 0.853 Reliable

Convenience 0.783 Reliable
Security 0.632 Reliable
Product Variety 0.613 Reliable
Time 0.864 Reliable
Consumer behavior on
0.718 Reliable
online shopping
The reliability and validity results show that the instrument is both reliable and valid
as obtained Cronbach’s alpha was greater than 0.6. The independent variable of e
commerce knowledge, convenience, security, product variety and time with
Cronbach’s alpha of 0.853, 0.783, 0.632, 0.613,and 0.864 shows the variables are
valid and reliable as it is greater than 0.6. It indicates that the data taken for the study
are reliable. Similarly, the dependent variable of consumer behavior on online
shopping with Cronbach’s alpha of 0.718 which is greater than 0.6 so, the instrument
is considered to be reliable and thus valid for the study.
Data Analysis Plan
In this segment, firstly, all data has been collected through questionnaire and then it
has been organized. Different types of questionnaires have been used such as
categorical questions and Likert scale questions. After gathering the entire completed
questionnaire from the respondents, it has been coded and tabulated into SPSS
worksheet for the analysis and interpretation of the data. Statistical package of social
science (SPSS) computer software and Microsoft Excel has been used. After the
analysis and interpretation of the responses, the result is presented. The various tools
such as frequencies, percentage, mean, descriptive statistics, correlation, and
regression has been used to derive the result.
24
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
This chapter describes the analysis results generated from the process of data
collection. It deals with the analysis and interpretation of the primary data collected
through questionnaire from 121 respondents. Data were analyzed with reference to the
objectives of this research as mentioned in the earlier chapter. The primary purpose of
this chapter is to analyze and interpret the collected data and present the results of the
questionnaire survey.
The main objective of this research study was fulfilled with the outcomes derived
from the analysis of the data. This chapter exhibits an extensive data analysis and the
results of the statistical testing. Data analysis is done using correlation analysis,
regression analysis, reliability analysis and validity analysis of statistical software
SPSS. This chapter focuses on the results and discussion, based on the tables
generated by SPSS. The hypothesis testing results are then discussed and summarized.
Subsequently the summary of the results is presented.
The main purpose of this section is to test impact of online shopping with
consumption behavior where the dependent variable is the consumer behavior and
independent variables consists of various factors such as e-commerce knowledge,
Convenience, security, product variety and time .
This section is further sub-divided into five sub-sections. The first part deals with the
respondents’ profile and their demographic characteristics. The second part is
descriptive analysis, which analyzes the collected data through frequency analysis and
measures of central tendency. The third part analyzes the collected data through
inferential analysis, which includes correlation analysis. Fourth part includes
hypotheses testing and regression analysis. The fifth and the final part of this chapter
deals with discussion and inferences by analyzing and interpreting the collected data
where the respondents included people mainly youths such as college going students,
working men and women.
25
Demographic Profile of the Respondents
Respondents are categorized into various categories according to their different

demographic characteristics. The results of respondents’ different demographic
characteristic are described here
Respondents Based on Gender
The gender of the respondents consists of male and female. The frequency and
percentage is depicted below in Table 4.1
Table 4. 1: Distribution of Respondents Based on Gender
Gender Frequency Percent

Male 44 36.4
Female 76 63.6
Total 121 100.0
Result in table 4.1 shows that male respondents are more in comparison to female
respondents. Out of 121 respondents female respondents were 45 i.e. 37.2 percent and
male respondents were 76 i.e. 62.8 percent.
Respondents Based on Age
Respondent’s age were divided into 4 groups, ranging from 15 to above 45 years.
Table 4. 2: Distribution of Respondents Based on Age
Age Group Frequency Percent

15-25 9 7.4
26-35 74 61.2
36-45 30 24.8
45 Above 8 6.6
Total 121 100 .0
The results in table 4.2 show that most of the respondents were of age from 26-35
(61.2 percent) followed by the respondents of age group36-45 (24.8 percent) followed
26
by 15-25 (7.4 percent) and only 6.6 percent of respondent were from 45 above age
group.
Respondents Based on Income Level
Respondent’s income was divided into 5 groups, ranging from less than 15,000 to
above 60,000.
Table 4. 3: Distribution of Respondents Based on Income
Income Level Frequency Percent

Less than 15000 8 6.6
15001-30000 22 18.2
30001-45000 53 43.8
45001-60000 22 18.2
Above 60000 16 13.2
Total 121 100
The result in table 4.3 shows that most of the respondents have income level 30,001 -
45,000 that consist of 43.8 percent of respondents (53 out of 121 respondents). After
that respondent having income level less than 15,000 consist of 6.6 percent of
respondents (8 out of 121 respondents) and income level 15,000 - 30,001 consist of
18.2 percent of respondents (22 out of 121 respondents).18.2 percent of the
respondents have income level ranging from 45,001 to 60,000 (22 out of 121
respondents).
Income level above 60,000 consists of 13.2 percent of the total respondents (16 out of
121 respondents).
Respondents Based on Education Level
Respondent’s level of education was divided into 4 groups, ranging from SLC to
above Master’s Degree.
27
Table 4. 4: Distribution of Respondents Based on Education Level
Educational Level Frequency Percent

Up to +2 10 8.2
Bachelors level 45 37.2
Masters and above 66 54.5
Total 121 100.0
The result in table 4.4 shows that most of the respondent's level of education is
Masters Level and above that consists of 54.5 percent of respondents (66 out of 121
respondents). After that respondent having Bachelors Level education consists of 37.2
percent of respondents (45 out of 121 respondents). 4.1 percent of respondents'
education level is for those whose education level is Plus 2 and SLC.
Descriptive Analysis
In order to present descriptive scores for each of the variables used in the survey,
descriptive analyses were performed. The main aim of this analysis is to describe the
importance of each variable in order of importance given to it by the survey
respondents. Descriptive statistics summarizes the sample and observations that have
been made. In this study, descriptive analysis incorporates the calculation of statistical
measures such as mean and standard deviation.
Descriptive statistics is used to analyze the data collected from the respondents. The
data for research was collected with the help of a questionnaire based on a 5-point
rating scale ranging from 1-strongly disagree to 5-strongly agree. The rating scale
ranges from 1 to 6 as follows:
1 – Strongly disagree
2 – Disagree
3 – Neutral
4 – Agree
5 – Strongly Agree
34 opinion statements were set to measure 4 different variables among which 3 are
independent variables and 1 is dependent variable. 26 different opinion statements
28
were used to describe independent variables namely E-commerce knowledge,

perceived ease of use and perceived risk. 8 different opinion statements described
dependent variable that is “Consumer Behavior on Online Shopping”.
Descriptive statistics uses simple statistical tools to draw summaries from a given data
set. Mean and standard deviation is used here to summarize the data for each variable
which were collected during the data collection period using questionnaire.
E-commerce Knowledge Factor
E-commerce Knowledge Factor is one of the independent variables of this research.

Descriptive study of each question drafted and overall descriptive study on this
variable is shown in Table 4.5.
29
Table 4. 5: Descriptive Statistics of E-commerce Knowledge Factor
Ecommerce knowledge Minimum Maximum Mean Std.

Deviation
The website design helps me in 1 5 4.36 0.806
searching the products easily
While shopping online, I prefer to 1 5 4.49 0.765
purchase from a website that
provides safety and ease of
navigation and order.
I prefer to buy from website that 1 5 4.57 0.762
provides me with quality of
information.
Ecommerce knowledge 1 5 4.47 0.684
The results in table 4.5 show descriptive statistics of an individual item and as a whole
of E-commerce Knowledge Factor. There are four statements used to measure the
superior-subordinate communication. Each of the 121 respondents submitted their
responses in the five-point Likert scale.
The table 4.5 shows that statement 3 has the highest mean and statement 1 has the
lowest. The highest mean of 4.57 indicates that it is the most agreed statement, stating
that people prefer to buy from website that provides them with quality of information.
Lowest mean of 4.36 shows that respondents are less agreed by the statement “The
website design helps me in searching the products easily.”
The aggregate mean of E-commerce Knowledge Factor is 4.47 with standard

deviation of 0.684. This shows that people shopping through ecommerce, mostly
youths give importance to E-commerce Knowledge Factor and its impact on
Consumer Behavior.
30
Convenience Factor
Convenience factor is another independent variable of this research. Descriptive study

of each questions drafted and overall descriptive study on this variable is shown Table
4.6.
Table 4. 6: Distribution by Convenience
Convenience Minimum Maximum Mean Std.

Deviation
I get on time delivery by 1 5 3.09 0.876
shopping online.
I can buy the products 1 5 3.88 0.862

anytime 24 hours a day
while shopping online.
I like online shopping to 1 5 3.79 0.836

avoid problems at local
shopping centers.
I prefer online shopping 1 5 3.68 0.906

to avoid driving and
parking hassles.
Convenience 1 5 3.61 0.677
The results in table 4.6 show descriptive statistics of Convenience factor. There are 4
statements used to measure the convenience . Each of the 121 respondents submitted
their responses in the five-point Likert scale.
Among the 4 statements, “Statement 1” has scored the lowest mean of 3.09 with a
standard deviation of 0.876 and “Statement 2” has scored the highest mean of 3.88
with standard deviation of 0.862
31
The highest mean of 3.88 indicates that it is the most agreed statement, stating people
I can buy the products anytime 24 hours a day while shopping online. The lowest
mean of 3.09 shows that respondents are less agreed by the statement “people get on
time delivery by shopping online”
The aggregate mean of Perceived Ease of Use Factor is more than 3 i.e. 3.61 with
standard deviation of 0.677. This shows that the people of Kathmandu valley give
importance to Convenience Factor while consuming the product.
Security Factor
Security factor is another independent variable of this research. Descriptive study of

each questions drafted and overall descriptive study on this variable is shown
32
Table 4. 7 : Distribution by Security Factor.
Security Minimum Maximum Mean Std.

Deviation
I feel safe and secure while 1 5 3.25 0.849
shopping online.
I get scared by identity thefts 1 5 3.82 0.866
through credit cards while
purchasing online.
I might not get what I ordered 1 5 3.98 0.763

through online shopping.
I doubt online purchasing as 1 5 3.91 0.837

there is no proper refund
policy.
Security 1 5 3.73 0.572
The results in table 4.7 show the descriptive statistics of an individual item and as a
whole of Security Factor. There are four statements used to measure the Security
Factor. Each of the 121 respondents submitted their responses in the five-point Likert
scale.
Among the four statements, the statement 1 has scored the lowest mean of 3.25 with a
standard deviation of 0.849 and statement 3 has scored the highest mean of 3.98 with
the standard deviation of 0.763.
The highest mean of 3.98 indicates that it is the most agreed statement, stating that the
customer might not get what they have ordered through online shopping. Lowest
mean of 3.25 shows that respondents are less agreed by the statement “I feel safe and
secure while shopping online” therefore the respondents do not believe that it is safe
and secure while shopping online.
The aggregate mean of security Factor is 3.73 with a standard deviation of 0.572 This
shows that the people of Kathmandu valley mainly youths show importance to
security Factor.
33
Table 4. 8: Distribution by Product Variety
Product variety Minimum Maximum Mean Std.

Deviation
It is easy to choose and 1 5 4.02 0.670
make comparison with
other products while
shopping online.
It is hard to judge the 1 5 4.18 0.719

quality of products
displayed online.
I compare a lot before 1 5 4.03 0.729
shopping so product
variety is must for me
Product variety 1 5 4.08 0.532
Tables 4.8 represent descriptive statistics of an individual item and as a whole of

product variety. There are three statements used to measure the Product variety
Factor. Each of the 121 respondents submitted their responses in the five-point Likert
scale.
Among the three statements, the statement 1 has scored the lowest mean of 4.02 with
a standard deviation of 0.670 and statement 2 has scored the highest mean of 4.18
with the standard deviation of 0.179.
The highest mean of 4.18 indicates that it is the most agreed statement, stating that it
is hard to judge the quality of products displayed. Lowest mean of 4.02 shows that
respondents are less agreed by the statement “It is easy to choose and make
comparison with other products while shopping online”
The aggregate mean of product variety Factor is 4.08 with a standard deviation of
0.532 this shows that the people of Kathmandu valley mainly youths show importance
to product variety while shopping online.
34
Table 4. 9: Distribution by Time
Time consumed Minimum Maximum Mean Std.

Deviation
Online shopping takes less 1 5 3.97 0.763
time to purchase, hence
doesn’t waste time.
I feel that it takes less time in 1 5 3.92 0.759
evaluating and selecting a
product while shopping
online.
Online shopping attracts me 1 5 3.88 0.818
as I can save time.
Time consumed 1 5 3.92 0.692
Tables 4.9 represent descriptive statistics of an individual item and as a whole of time.
There are three statements used to measure the time Factor. Each of the 121
respondents submitted their responses in the five -point Likert scale.
Among the three statements, the statement 1 has scored the highest mean of 3.97 with
a standard deviation of 0.763 and statement 3 has scored the lowest mean of 3.88 with
the standard deviation of 0.818.
The highest mean of 3.97 indicates that it is the most agreed statement, stating that
online shopping takes less time to purchase, hence doesn’t waste time. Lowest mean
of 3.88 shows that respondents are less agreed by the statement that is online
shopping attracts the people as it save time of the customer.
The aggregate mean of time saving factor is 3.92 with a standard deviation of 0.692
this shows that the people of Kathmandu valley mainly youths show importance to
time saving while shopping online.
35
Consumer Behavior on Online Shopping
Consumer Behavior is dependent variable of this research. Descriptive study of each

questions drafted and overall descriptive study on this variable is shown in Table 4.8.
Table 4. 10: Distribution by Consumer Behavior of Online Shopping
Consumer's behavior Minimum Maximum Mean Std.

Deviation
Catchy and attractive advertisement 1 5 3.55 0.999
influences my purchasing behavior.
I always know what I need to buy. 1 5 3.66 0.842
I read reviews before making the 1 5 3.93 0.727

decision to buy.
The opinions of my family and 1 5 3.80 0.748
friends can affect my shopping
decision.
My past experiences with a company 1 5 4.38 0.829
or product affect my shopping
decision.
I buy those products recommended 1 5 3.16 0.907
by the seller.
Consumer behavior 2 5 3.75 0.546
The results in table 4.10 show the descriptive statistics of an individual item and as a
whole Consumer Behavior on Online Shopping. There are six statements used to
measure the impact of Consumer Behavior. Each of the 121 respondents submitted
their responses in the five-point Likert scale.
Among the six statements, the statement 6 has scored the lowest mean of 3.16 with a
standard deviation of 0.907 and statement 5 has scored the highest mean of 4.38 with
standard deviation of 0.829.
The highest mean of 4.38 indicates that it is the most agreed statement, stating that the
past experiences of people with a company or product affect their shopping decision
36
and the lowest mean of 3.16 shows that respondents are less agreed by the statement
“I buy those products recommended by the seller.”
The aggregate mean of Consumer Behavior on Online Shopping is 3.75 with standard
deviation of 0.546. This shows that the people of Kathmandu valley give importance
to Consumer Behavior on Online Shopping.
Independent Sample T test
Table 4. 11: Analysis of Online Shopping Behavior on the Basis of Gender
Gender Mean Std. Deviation T value P value

Female 3.754 0.556 0.100 0.921
Male 3.743 0.546
Table 4.11 depicts the average value of online shopping behavior across male and
female customers. According to the above data, the mean value of satisfaction for
female customer is 3.754 whereas the mean value of satisfaction for male customers is
3.743. These data show that female customers seem slightly more active in online
shopping than male customers.
To compare the mean between male and female customers, independent samples t-test
was performed. The p value came out to be 0.921, which is greater than level of
significance (α= 0.05). So, we can conclude that there is no significant impact
between gender and online shopping behavior of consumer within Kathmandu valley.
H6 is not accepted.
37
One-Way ANOVA
Basis of Age Group
Std.
Age group Mean Deviation Minimum Maximum F value P value
15-25 years 3.65 0.694 2.83 5.00 5.017 0.003
26-35 years 3.82 0.402 2.67 5.00
36-45 years 3.77 0.602 2.67 5.00
45Above 3.08 0.881 2.00 4.00
The table 4.12 shows the analysis of the level of online shopping behavior of
customer within Kathmandu valley on the basis of age group. Since, p-value =0.003 <
level of significance (α) =0.05, we accept H7, i.e. there is significant impact between
age group and online shopping behavior of customer. It state that age of the customer
impact in online shopping behavior of customer within Kathmandu valley.

Basis of Education
Std.
Education level Mean Deviation Minimum Maximum F value P value
SLC 3.47 0.938 2.0 4.5 1.005 0.393
+2 4.00 0.612 3.5 5.0
Bachelors 3.80 0.471 2.7 2.7
Above Masters 3.72 0.555 2.0 2.0
customer within Kathmandu valley on the basis of age group. Since, p-value =0.393
>level of significance (α) =0.05, we do not accept H8, i.e. there is no significant
impact between educational level and online shopping behavior of customer within
Kathmandu valley. It state that educational level of the customer have no impact in
online shopping behavior within Kathmandu valley.
38

Basis of Income Level
Std.
Income level Mean Deviation Minimum Maximum F value P value
Less than 15000 3.67 0.611 3.00 4.5 0.834 0.506
15001-30000 3.82 0.592 2.2 5.0
30001-45000 3.81 0.485 2.00 5.0
45001-60000 3.67 0.547 2.7 5.0
Above 60000 3.58 0.644 2.0 4.5
customer within Kathmandu valley on the basis of income level. Since, p-value
=0.506 >level of significance (α) =0.05, we do not accept H9, i.e. there is no
significant impact between income level and online shopping behavior of customer
within Kathmandu valley. It state that income level of the customer have no impact in
39
Correlation Analysis
Table 4. 15: Correlation between Online Shopping Factor and Consumer Behavior
X1 X2 X3 X4 X5 X6
X1 1 0.481** 0.376** 0.583** 0.516** 0.408**
0.000 0.000 0.000 0.000 0.000
X2 1 0.303** 0.349** 0.384** 0.474**
0.001 0.000 0.000 0.000
X3 1 0.605** 0.363** 0.528**
0.000 0.000 0.000
X4 1 0.421** 0.412**
0.000 0.000
X5 1 0.424**
0.000
X6 1
**Correlation is significant at the 0.01 level (2-tailed).
The table 4.15 shows the correlation matrix between independent variable and
dependent variables, where, X1 = E-Commerce knowledge (Independent variable),
X2= Convenience (Independent variable), X3= Security (Independent variable), X4=
Product variety (Independent Variable), X5= Time and X6= Online shopping
behavior of consumer.
The correlation coefficient between E-commerce knowledge and online shopping
behavior of consumer is 0.408, which indicate that there is a positive correlation
between E-commerce knowledge and online shopping behavior of consumer. The
corresponding p-value is 0.000, which is less than level of significance (α) = 0.05,
which implies that there is significant relationship between E-commerce knowledge
and online shopping behavior of consumer. This means that if the consumers are
aware about the ecommerce then they are likely to do their shopping via online.
The correlation coefficient between convenience and online shopping behavior of

consumer is 0.474, which implies that two variables are positively correlated. The
corresponding p-value is 0.000, which is less than level of significance (α) = 0.05,
40
signifying that there is positive and significant relationship between convenience and
online shopping behavior of consumer. It means if the E-commerce convenience
increases then the online shopping behavior of the customer increase as well.
The correlation coefficient between security and online shopping behavior of

consumer is 0.528 which means there is positive correlation between security and
online shopping behavior of consumer. The corresponding p-value is 0.000, which is
less than level of significance (α) = 0.05, indicate that there is significant relationship
between security and online shopping behavior of consumer. This indicates if the
online shopping is high secured then consumer will be more attracted to do the online
shopping.
The correlation coefficient between product variety and online shopping behavior is
0.412, which means there is positive correlation between product variety and online
shopping behavior of consumer. The corresponding p-value is 0.000, which is less
than level of significance (α) = 0.05, indicate that there is significant relationship
between product variety and online shopping behavior of consumer. It indicates that if
the online shopping provides wide product variety then online shopping behavior of
customer also increases.
The correlation coefficient between time and online shopping behavior is 0.424,
which means there is positive correlation between time and online shopping behavior
of consumer. The corresponding p-value is 0.000, which is less than level of
significance (α) = 0.05, indicate that there is significant relationship between time and
online shopping behavior of consumer.
The correlation coefficient between time and online shopping behavior is 0.424,
which means there is positive correlation between time and online shopping behavior
of consumer. The corresponding p-value is 0.000, which is less than level of
significance (α) = 0.05, indicate that there is significant relationship between time and
online shopping behavior of consumer.
41
Regression Analysis
Table 4. 16 : Regression Analysis of Variables
Beta T-value P value VIF

(Constant) 0.967 2.837 0.005
E-commerce knowledge 0.049 0.614 0.540 1.920
Convenience 0.222 3.301 0.001 1.363
Security 0.353 4.063 0.000 1.629
Product Variety -0.010 -0.095 0.924 2.067
Time Saving 0.123 1.807 0.073 1.470
R Square 0.413
F Value 16.182
P value 0.000
Regression analysis in Table 4.14 shows the impact between the dependent variable
and each of the five-independent variables. According to significant value,
convenience and security have a significant impact with online shopping behavior of
the consumer.
The regression coefficient of E commerce knowledge is 0.049 which indicates that
ecommerce knowledge has less positive impact on online shopping behavior of
consumer. The corresponding p-value is 0.540, which is more than level of
significance (α) = 0.05, indicate that there is no significant impact between
ecommerce knowledge and online shopping behavior of consumer. H1 is not accepted
The regression coefficient of convenience is 0.222 which indicates that convenience

has positive impact on online shopping behavior of consumer. The corresponding p-
value is 0.001, which is less than level of significance (α) = 0.05, indicate that there is
significant impact between convenience and online shopping behavior of consumer. It
means if the convenience factor is increased by one unit, average impact on online
shopping behavior of consumer increases by 0.222 unit. Thus H2 is accepted.
Regression coefficient of security in the regression coefficient analysis is 0.353 which

indicates that if the security factor is increased by one unit, the average impact on
42
online shopping behavior of customer will increase by 0.353 units. Thus, H3 is

accepted.
Regression coefficient of product variety in the regression coefficient analysis is -

0.010. It indicates that product variety has negative impact on online shopping
behavior of the customer. The corresponding p value is 0.924 which is more than
level of significance (α) = 0.05, signifying that there is no significant impact between
product variety and online shopping behavior of the customer. Thus, H4 is not
accepted.
Regression coefficient of time consumed in the regression coefficient analysis is

0.123. It indicates that time consumed has positive impact on online shopping
behavior of the customer. The corresponding p value is 0.073 which is more than
level of significance (α) = 0.05, signifying that there is no significant impact between
time consumed and online shopping behavior of the customer i.e. H5 is not accepted.
Moreover, R-square is 41.3percent which states that the independent variables explain
dependent variable by 41.3 percent. It consist many other factors as well that
influence the dependent variable. This regression coefficient explains 41.3 percent of
the dependent variable. Also, F value and P value are16.182 and 0.000 which is less
than the level of significance (α) 0.05 which states that this regression analysis is
acceptable.
Also, the VIF between the data of e commerce knowledge, convenience, security, and
time and product variety is less than 10 which suggests that there is less multi co
linearity among the independent variables taken into consideration.
43
Summary of Hypothesis
Once data and the impact of independent variables and dependent variable have been
analyzed, the final results of hypothesis testing are determined. They are summarized
Table 4. 17: Summary of Hypothesis
Hypothesis P value Remarks

H1: There is significant impact between e-commerce
knowledge and consumer’s online shopping behavior within 0.540 Rejected
Kathmandu valley.
H2: There is significant impact between convenience and
online consumer’s online shopping behavior within 0.0001 Accepted
Kathmandu valley.
H3: There is significant impact between Security and
consumer’s online shopping behavior within Kathmandu 0.000 Accepted
valley.
H4: There is significant impact between product variety and 0.924 Rejected
consumer’s online shopping within Kathmandu valley
H5: There is significant impact between time saving and
consumer’s online shopping behavior within Kathmandu 0.073 Rejected
valley
H6: There is significant impact between gender and
valley.
H7: There is significant impact between age and consumer’s 0.003 Accepted
H8: There is significant impact between education and
valley.
H9: There is significant impact between income level and
online shopping behavior within Kathmandu valley 0.506 Rejected
CHAPTER V
44
SUMMARY AND CONCLUSION
The main purpose of this study was to examine the several factors that impact
consumers on online shopping decision making. This study was based on descriptive
and inferential research design including the quantitative method. Structured
questionnaires were used for the data collection to meet the objective for the research.
For the quantitative analysis of data, 121 respondents were taken into consideration
consisting the majority of female respondent i.e 63.6 percent of female respondent.
The independent sample t- test analysis showed that there is no significant impact
between gender and consumer shopping behavior in online shopping. The highest
61.2 percent of respondent were from 26-35 age group and the lowest 6.6 percent
were from above 45 years. The one-way ANOVA analysis showed that there is
significant impact between age group and consumer shopping behavior in online
shopping.
The research showed the income level of 30001-45000 as the highest with the 43.8
percent and lowest with the 6 percent with the income level less than 15000. It was
found consumer shopping behavior of online shopping do not differ as per the income
level since the impact between these two variables were insignificant. Likewise, the
highest respondent of 54.5 percent was from master’s level of education while the
lowest of 8.2 percent were up to plus 2 level of education. From one-way ANOVA
analysis, it was revealed that there is no significant impact between education and
consumer shopping behavior in online shopping.
The study also includes the descriptive analysis where the average score of e-
commerce knowledge is 4.47 on convenience is 3.61, on security is 3.73, on product
variety is 4.08 and on time saving is 3.92. it includes that the consumer consider the
factors like e-commerce knowledge, convenience, security, product variety and time
saving while doing the online shopping. Also, the average score of level of consumer
shopping behavior in online shopping is 3.75, which means consumer of Kathmandu
valley gives importance to the online shopping.
The independent constructs of E- commerce factors were taken to examine its

relationship with the dependent variables i.e. consumer shopping behavior in online
45
shopping. The correlation coefficient relationship of dimensions i.e. e-commerce

knowledge, convenience, security, product variety, and time saving with the level of
consumer shopping behavior is significant as the P- value is less than 0.05. Hence, all
the independent variables are positively correlated with the dependent variable. It can
be concluded that the factors like e- commerce knowledge, convenience, security,
product variety, and time saving effects on the consumer shopping behavior of online
shopping in Kathmandu valley.
The regression analysis states that convenience, and security are the dimensions that
have significant impact with the consumer shopping behavior of online shopping in
Kathmandu valley with p-value less than 0.05. Other three dimensions like e-
commerce knowledge, product variety and time saving have no significant impact on
the consumer shopping behavior of online shopping in Kathmandu valley with p-
value greater than 0.05. This research revealed that convenience and security directly
impact on consumer shopping behavior of online shopping whereas e- commerce
knowledge, product variety and time saving has not much impact on consumer
shopping behavior of online shopping in Kathmandu valley.
Moreover, the result showed that if independent variable i.e. e-commerce knowledge,
convenience, security and time saving are increased by 1 unit then the level of
dependent variable i.e. consumer shopping behavior in online shopping is also
increased except product variety variable as the beta value is negative. Further, VIF is
an alternative collinearity measure and large value indicate a strong relationship
between predictor variables. The VIF less than 10 is acceptable, so that there is no
concern of the multi collinearity in this study as all VIF scores is less than 10.Also, R-
square is 41.3 percent which states that the independent variables explain dependent
variable by 41.3 percent. This regression coefficient explains 41.3 percent of the
dependent variable.
Conclusion
The central idea of this study was to examine the factors that affect the online
shopping behaviors of customer within Kathmandu valley. To meet the objective, a
structured questionnaire was used to collect data and statistical tools like SPSS was
used to analyze the data.
46
The study revealed that customer consider the factors like e-commerce knowledge,
convenience, security, product variety and time saving while making decision to do
online shopping. The factors like convenience and security have positive and
significant impact on online shopping behavior of customer within Kathmandu valley.
This is clarified that consumer prefer online shopping to get the right product at
perfect time, 24 hours availability, easy and convenience as compared to traditional
shopping. Besides this, consumers are also concerned with the security issues before
making decision of online shopping.
This study examined the moderating effect of demographic variables between e-

commerce factors and consumer shopping behavior in online shopping. The result
from the quantitative session reveals that the there is no any impact of gender,
education level and income on the consumer shopping behavior in online shopping
while age group have significant impact with the consumer shopping behavior in
online shopping. At nutshell, convenience and security are the major dimensions that
impacts online shopping shopping behavior of consumer within Kathmandu valley.
The result of this study is also constituent with the study of Kharel (2018) specifying
the role of security to build trust on online shopping which persuade the customer to
depend upon online shopping. Furthermore the study also depict the role of
convenience of online shopping which helps to develop trust upon online shopping
and influence the consumer shopping behavior.
To support this study Vaghela (2017) indicates that perceived ease of use i.e.
convenience is one of the major reason behind the customer to do online shopping as
it is very easy to find the product and purchases it from the internet. On the word of
Shakya (2018) security has an important variable determining online consumer
shopping behavior. Therefore, online retailers are advised to ensure security to
develop trust of online consumers, including the protection of personal information of
online consumers.
Jha (2018) study the impact of e-commerce knowledge, convenience, product variety,
security and time saving on online shopping behavior of customer in Koteshwor. The
finding of the study suggest the positive impact of e-commerce knowledge,
convenience, security, product variety and time saving in the consumer shopping
47
behavior towards online shopping whereas, in our study security and convenience
only have the positive and significant relationship on consumer attitude of adopting
online shopping in Kathmandu valley.
Recommendation
The findings from the research states that the customer emphasizes more on the
convenience and security regards to the online shopping. These factors guide them to
make their purchasing decision. So, the e-retailer should take important measures to
eliminate the psychological factor like security issue to build trust in the online retail
form and ensure the privacy of online consumers, provision of refund policy in case
of wrong product to motivate the customer towards the online shopping and also to
create the positive word of mouth to huge number of customers. Thus, the safety and
security of the customers must be maintained, every customer must be dealt with in an
impressive manner. The information of the products and the reviews must be shown
with honesty and transparency. Moreover, e-retailers should also focus on an
innovative way that further ease the process of online shopping like to ensure quick
delivery of product, 24 hours availability and so on in order to persuade the customer
towards online shopping over the traditional shopping.
 Ensure the long term relations
To ensure the long term relationship with the customer the e- retailer should also
focus on product quality, customer friendly website design, product variety, price and
so on to develop the trust upon the e-commerce. Trust helps to gain the loyal
customer. Loyal customers are the assets of the firm as they not only create profits but
also invite new customers as a word of mouth is a very robust medium of
advertisement than any other media that helps the organization to achieve their
objectives.
 Develop the marketing strategy as per the consumer benaviour
In this study, an attempt has been made to provide practical advice to the e-retailers to
identify the factors that affects the online shopping behavior of the consumer in
48
Kathmandu valley. These findings may be helpful to online marketer for the
development of the marketing strategies. The findings of the study also offer
implications for consumers who are making a strategic purchase, such as purchasing
online. The implications for developers’ marketers are to understand individual
consumer decision making on purchasing online via internet, it can greatly
contributed to improved explanations and predictions in the online shopping context.
This knowledge enables the developers’ companies to be able to better match their
customers’ desires with their offer. Given the high level of buyer involvement, online
stores and marketers should focus on building confidence and satisfaction in their
potential and existing customers.
 Make target consumers clear about the advantages of the online shopping
From the consumer’s perspective, the consumers will know that there are many
advantages of online purchasing such as convenience (save time, save energy), have a
broader selection, cheaper price and can access to the product information before
shopping. This research can make the consumers aware that e-commerce has become
an important trend in this modern information technology society. This study is also
useful to academicians where current study could serve as a reference and may
provide some guides for researchers who would like to study about the same topic
The present research represents a small sample size of the 121 respondents and data.
To ensure the generalization of further research, the study should be carried out using
the larger sampling size. Besides all respondents was internet savvy and sufficiently
educated. Future research might examine the diverse internet users such as older, less
internet savvy and less educated. Besides this there is a fruitful area of future research
to examine if there are other important factors affecting online shopping intention like
product quality, price, brand image, trust, past experience and so on. Finally, this
research is only confined to online shopping in Kathmandu. Further research can be
expanded to other shopping channels including phone shopping, catalog shopping or
TV shopping.
49
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56
ANNEX
QUESTIONAIRE
Dear Respondents,
I hope this message finds you well.
I, Sangam Ghimire, student of Master of Business Administration (MBA) at ACE

Institute of Management have taken a research study on “ Factors Influencing on
Online Shopping Behavior of Consumers ” as part of my requirement for the partial
fulfillment of my MBA degree at Pokhara University.
In this regard, I request you to contribute few minutes of your valuable time and fill in
the following questions. I would be thankful to you all for your kind cooperation for
providing valuable information. All the information received is strictly for academic
purpose and will be treated confidentially. Thank you for your support.
1. Respondent's Profile
Gender Age Education level Income level (in Rs.)
Female [ ] 15-25 [ ] Till +2 [ ] Less than 15,000 [ ]

Male [ ] 26-35 [ ] Bachelors [ ] 15,001- 30,000 [ ]
36-45 [ ] Masters & above [ ] 30,001- 45,000 [ ]
Above 45 [ ] 45.001- 60,000 [ ]
Above 60,000 [ ]
2. Do you agree or disagree with the following statements regarding e-commerce

knowledge? (Please give your answer on a scale from strongly agree to strongly
disagree)
E-commerce Knowledge Strongly Disagree Neutral Agree Strongly

Disagree Agree
1. The website design

helps me in searching the
products easily.
2. While shopping online,
57
I prefer to purchase from

a website that provides
safety and ease of
navigation and order.
3. I prefer to buy from

website that provides me
with quality of
information.
3. Do you agree or disagree with the following statements regarding convenience?

(Please give your answer on a scale from strongly agree to strongly disagree)
Convenience Strongly Disagree Neutral Agree Strongly

Disagree Agree
1. I get on time delivery

by shopping online.
2. I can buy the products
anytime 24 hours a day
3. I like online shopping

to avoid problems at
local shopping centers.
4. I prefer online
shopping to avoid
driving and parking
hassles.
4. Do you agree or disagree with the following statements regarding Security? (Please
give your answer on a scale from strongly agree to strongly disagree)
58
Security Strongly Disagre Neutral Agree Strongly

Disagree e Agree
1. I feel safe and secure

2. I get scared by
identity thefts through
credit cards while
purchasing online.
3. I might not get what I

ordered through online
shopping.
4. I doubt online
purchasing as there is
no proper refund policy.
4. Do you agree or disagree with the following statements regarding Product Variety ?
Product Variety Strongly Disagre Neutral Agree Strongly

Disagree e Agree
1. It is easy to choose
and make comparison
with other products
2. It is hard to judge the

quality of products
displayed online
3. I compare a lot
before buying so
product variety is must
59
for me
4. Do you agree or disagree with the following statements regarding time consumed ?
Time Strongly Disagre Neutral Agree Strongly

Disagree e Agree
1. Online shopping
takes less time to
purchase , hence doesnt
waste time .
2. I feel that it takes less
time in evaluating and
selecting a product
3.Being an employed
person , online
shopping attracts me as
I can save time .
5. Do you agree or disagree with the following statements regarding consumer's

behavior on online shopping? (Please give your answer on a scale from strongly agree
to strongly disagree)
Consumer's Behavior on Strongly Disagre Neutral Agree Strongly

Online Shopping Disagree e Agree
1. Catchy and attractive

advertisement influences
my purchasing behavior.
2. I always know what I
60
need to buy.
3. I read reviews before

making the decision to buy.
4. The opinions of my
family and friends can
affect my buying decision.
5. My past experiences with

a company or product
affect my buying decision.
6. I buy those products
recommended by the seller.
THANK YOU FOR COMPLETING THIS SURVEY !!

GRP - Sangam Ghimire - PA (Repaired)

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FACTORS INFLUENCING ONLINE SHOPPING

BEHAVIOR OF CONSUMERS IN KATHMANDU

A Graduate Research Project Report Submitted to

Submitted for the Degree of

The Graduate Research Project entitled “Factors Influencing on Online Shopping

I wish to acknowledge my deep sense of gratitude to Office of Dean Faculty of

I would like to record my sincere appreciation and gratitude towards my research

Date: 27 January, 2021

Recommendation for Approval

Mr. Pravat Uprety

Acceptance of the External Evaluator

External Examiner ………………………

GRP Advisor ….………………….

Internal Examiner ......................

ADSL : Asymmetric Digital Subscriber Line

OLS : Ordinary Least Square

PEOU : Perceived Ease of Use

S.D : Standard Deviation

SET : Secured Electronic Transaction

SLC : School Leaving Certificate

SPSS : Statistical Package for Social Scientists

TAM : Technology acceptance model

TPB : Theory of planned behavior

VIF : Variance Inflation Factor

ANALYSIS AND RESULTS ................................................................................... 24

Table 4. 1: Distribution of Respondents Based on Gender ........................................ 25

Figure 2. 1: Theoretical Framework ......................................................................... 17

Keywords: convenience, e-commerce knowledge, online shopping, product variety,

Background of the Study

Consumer behavior examines how emotions, attitudes and preferences influence

As mentioned by Kotler and Kartajaya (2010), consumer behavior is a study of how

directly or indirectly, including brand-influencers and opinion leaders. As per research

Online shopping is a form of e-commerce which facilitates consumers to directly

It is very essential to understand the complexity and difficulties of online

Statement of the Problem

It is not a new phenomenon to analyze consumer behavior. The renowned marketing

 Is there any impact of e-commerce knowledge, convenience, security, product

 What is the moderating effect of demographic variables in between the factor

Objectives of the Study

Apart from the major objective, other specific objectives are:

 To identify the most influencing factor for buying behavior of consumer in

 To examine the relationship between the determinants and consumer buying

H1: There is significant impact between e-commerce knowledge and consumer’s

Significance of the Study

It is very likely that the E-commerce industry is getting importance in economy of

Limitations of the Study

Some limitations of this study are:

 The study is based on socio-demographic variables.

Organization of the Study

The preliminary part include title page, certification, declaration of authenticity,

Supplementary part has references and appendices of the research report.

Chapter II: Literature Review and Theoretical Framework

Chapter III: Research Design and Methodology

Chapter IV: Analysis and Results

Chapter V: Summary and Conclusion

This chapter includes major findings, conclusions, discussions and further

LITERATURE REVIEW & THEORETICAL FRAMEWORK

Review of Related Literature

Ecommerce needs a website through which business can be represented. E-business

Although, developed countries have embraced ecommerce at a brisk pace, developing

The history of Nepalese ecommerce dates to 1999, initially used especially by

With the introduction of ADSL (Asymmetric digital subscriber line) broadband