Exploring Impact of Consumer and Product Characteristics on E-Commerce Adoption: A Study of Consumers in India

Abstract

The paper aims at examining the impact of various consumer and product characteristics on adoption of e-commerce among consumers in India. The study is based on primary data collected through survey of consumers residing in and around Delhi. A structured non- disguised questionnaire has been employed for collecting the information from the respondents about their demographics, shopping orientations, security and privacy concerns, technological familiarity, past online shopping experiences and intentions to buy various types of products through internet in future. Past online shopping satisfaction, recreational shopping orientation, education and income emerge as significant factors affecting consumer past online purchases. In respect of future online shopping intentions, only three consumer-related factors viz., past online shopping satisfaction, past online shopping frequency and education, are found as significant predictors. Amongst product characteristics, product expensiveness is found to be negatively related to consumer future online purchase intentions. While consumers appear quite willing to buy services online that are high in their intangible value proposition, they appear somewhat ambivalent in their intentions to buy online the 'frequently purchased products'. Some of the consumer and product characteristics do influence consumer adoption of e-commerce. Study findings entail interesting implications for the marketers. They need to give adequate attention to consumer and product characteristics while designing their e-marketing strategies. As compared to goods, the surveyed respondents have expressed greater willingness to buy services online in future. Services thus appear to be more promising product category for sale through internet channel in future.

  • Page Number : 35-64

  • Keywords
    e-Commerce Adoption, Consumer and Product Characteristics

  • DOI Number
    https://doi.org/10.15415/jtmge.2011.22009

  • Authors

    • Sanjay K. JainDelhi School of Economics, Delhi
    • Manika JainARSD College, Delhi

References

  • Alam, S.S., Khatibi, A., Ahmad, M.I.S. and Ismail, H.B. (2007) ‘Factors affecting e-commerce adoption in the electronic manufacturing companies in Malaysia’, International Journal of Commerce and Management, 17:1/2, pp.129-139.
  • Alba, J., Lynch, J., Weitz, B., Janiszewski, C., Lutz, R., Sawyer, A. and Wood, S. (1997) ‘Interactive home shopping: consumer, retailer and manufacturer incentives to participate in electronic marketplaces’, Journal of Marketing, 61:3, pp. 38-54.
  • Bakker, E., Zheng, J., Knight, L. and Harland, C. (2008), ‘Putting e-commerce adoption in a supply chain context’, International Journal of Operations and Production Management, 28:4, pp. 313-330.
  • Chen, L., Mark, L. G., and Daniel, L. (2004) ‘Consumer acceptance of virtual stores: A theoretical model and critical success factors for virtual stores’, ACM SIGMIS Database. Available from <URL: http://database.bus.lsu.edu/abstractsv35.htm>.
  • Cheung, C.M.K., Lei, Z., Timothy, K., Gloria, W.W., Chan, and Moez, L. (2003) ‘Online consumer behavior: A review and agenda for future research’, 16th Bled E-commerce Conference: e-Transformation, Bled, Slovenia, June 9-11.
  • Chong, S. (2004) ‘Electronic commerce adoption by small- and medium-sized enterprises in Australia: an empirical study of influencing factors’, Proceedings for the European Conference of Information Systems (ECIS), Turku, Finland, June 14-16.
  • Constantinides, E. (2004) ‘Influencing the online consumer’s behavior: The web experience’, Internet research, 14:2, pp.111-126.
  • Dillon, T. W., and Harry, L.R. (2004) ‘Factors influencing consumers’ e-commerce commodity purchases’, Information Technology, Learning, and Performance Journal, 22:2, pp. 1-12.
  • Ghazali, E., Dilip, M. and Nurul A. M. (2006) ‘Exploratory study of buying fish online: Aare Malaysians ready to adopt online grocery shopping?’, International Journal of Electronic Marketing and Retailing, 1:1, pp. 67-82.
  • Grewal, R., Comer, J.M. and Metha, R. (2001) ‘An investigation into the antecedents of organisational participation in business-to-business electronic markets’, Journal of Marketing, 65:2, pp. 17-33.
  • Heijden, H. (2003) ‘Factors influencing the usage of websites: The case of a generic portal in Thev Netherlands’, Information and Management, 40:6, pp. 541-549.
  • Iacovou, A.L., Benbasat, I. and Dexter, A. (1995) ‘Electronic data interchange and small organisations: Adoption and impact of technology’, MIS Quarterly, pp. 465-485.
  • IAMAI (2007a) ‘Consumer e-commerce market to cross Rs.9000 crores by 2007/08’, Internet and Mobile Association of India (IAMAI), Mumbai. Monday, 8th October.
  • IAMAI (2007b) ‘Internet user base grows by 40% to reach 46 million’, Internet and Mobile Association of India (IAMAI), Mumbai. Monday, 3rd October.
  • IAMAI and IMRB International (2007) ‘Internet in India (I-Cube) Report, 2007’. Available from <URL:http://www.iamai.in/Upload/Research/I-Cube-2007-Summary-Reportfinal.pdf.
  • Igbaria, M., Zinatelli, N., Cragg, P. and Cavate, A. (1997) ‘Personal computing acceptance factors in small firms: a structural equation model’, MIS Quarterly, pp. 279-302.
  • IOAI (2005) The Power Shoppe: IOAI Economic Report 2005. Available from URL:http://www.exchange4media.com/e4m/izone1/IOA.pdf.
  • Jarvenpaa, S.L. and Todd, P.A. (1996) ‘Consumer reactions to electronic shopping on the World Wide Web’, International Journal of Electronic Commerce, 1:2, pp. 59-88.
  • Joo, Y.B. and Kim, Y-G. (2004) ‘Determinants of corporate adoption of e-marketplace: an innovation theory perspective’, Journal of Purchasing Supply Management, 10:2, pp. 89-101.
  • Kaynak, E., Tatoglu, E. and Kula, V. (2005) ‘An analysis of the factors affecting the adoption of electronic commerce by SMEs: Evidence from an emerging market’, International MarketingReview., 22:6, pp. 623-40.
  • Koyuncu, C. and Donald, L. (2003) ‘E-commerce and consumer’s purchasing behavior’, Applied Economics, 35:6, pp. 721-726.
  • Lee, D., Jinsoo, P., and Joongho, A. (2001) ‘On the explanation of factors affecting e-commerce adoption’, Proceedings of the 22nd International Conference on Information Systems, New Orleans, Louisiana, December 16-19, pp. 109-120.
  • Lee, Y. (2006) ‘An empirical investigation into factors influencing the adoption of an e-learning system’, Online Information Review, 30:5, pp. 517-541.
  • Li, H., Cheng, K., and Martha, G.R. (1999) ‘The impact of perceived channel utilities, shopping orientations, and demographics on the consumer’s online buying behavior’, Journal of Computer-Mediated Communication, (online), 5:2.
  • Li, N. and Ping, Z. (2002) ‘Consumer online shopping attitudes and behavior: An assessment of research’, Proceedings of the 8th America’s Conference on Information Systems (AMCIS’02), Dallas, August 9-11.
  • Liang, T.P. and Lai, H.J. (2002) ‘Effect of Store Design on Consumer Purchases: An empirical study of online bookstores’, Information and Management, 39:6, pp. 431-444.
  • Liao, C., Prashant, P. and Hong-Nan, L. (2006) ‘The roles of habit and website quality in e-commerce’, International Journal of Information Management, 26:6, pp. 469-483.
  • Lim, N. (2003) ‘Consumers’ perceived risk: Sources versus consequences’, Electronic Commerce Research and Applications, 2:3, pp. 216-228.
  • Lopes, A. and Dennis F.G. (2006) ‘Consumer perceptions and willingness to pay for intrinsically motivated online content’, Journal of Management Information Systems, 23(2), pp. 203-231.
  • Lynch, P. D. and Beck, J. C. (2001) ‘Profiles of internet buyers in 20 countries: Evidence for region-specific strategies’, Journal of International Business Studies, 32:4, pp. 725-748.
  • Min, H. and Galle, W.P. (1999) ‘Electronic commerce usage in business-to-business purchasing’, International Journal of Operations and Production Management, 19: 9, pp. 909-21.
  • Monsuwé, T. P., Benedict G.C.D., and Ko de, R. (2004) ‘What drives consumers to shop online? A literature review’, International Journal of Service Industry Management, 15:1, pp.102-121.
  • Moschis, G.P., Jac L. G. and Thomas J.S. (1985) ‘At-home shopping: Will consumers let their computers do the walking?’, Business Horizons, 28:2, pp. 22-29.
  • Park, C. and Jun, J. ( 2003) ‘A cross-cultural comparison of internet buying behavior: Effects of internet usage, perceived risk and innovativeness’, International Marketing Review, 20:5, pp. 534-53.
  • Peterson, R.A., Balasubramanian, S. and Bronnenberg, B.J. (1997) ‘Exploring the implications of the internet for consumer marketing’, Journal of the Academy of Marketing Science, 25:4, pp.329-346.
  • Phau, I. and Sui, M.P. (2000) ‘Factors influencing the type of products and services purchased over the internet’, Internet Research: Electronic Networking Applications and Policy, 10(2), pp.102-113.
  • Premkumar, G., Ramamurthy, K. and Nilakanta, S. (1994) ‘Implementation of electronic data interchange: An innovation diffusion perspective’, Journal of Management Information Systems, 11 No.2, pp. 157-79.
  • Ramayah, T. and Jantan, M. (2003) ‘Internet usage among Malaysian students: The role of demographic and motivational variables’, Kiev, Ukraine, May 16-19.
  • Richards, J. and Shen, D. (2006) ‘E-commerce adoption among Chinese consumers: An exploratory study’, Journal of International Consumer Marketing, 18:3, pp. 33-55.
  • Rotem-Mindali, O. and Salomon, I. (2007) ‘The impacts of e-retail on the choice of shopping trips and delivery: Some preliminary findings’, Transportation Research, Part A, 41:2, pp. 176-189.
  • Seth, P. (2005) ‘E-retailing the road ahead in India’, Project Report MBA (FT), FMS, Delhi.
  • Slyke, C.V., France, B. and Christie, L.C. (2004) ‘Factors influencing the adoption of web-based shopping: The impact of trust’, ACM SIGMIS Database, 35:2, pp. 32-49
  • Slyke, C.V., France, B. and Ross, H. (2005) ‘Understanding gender based differences in Consumer e-commerce adoption’, Proceedings of the Eight Annual Conference of the Southern Association of Information Systems (SAIS), Savannah, Georgia, USA. February: 25-26.
  • Asia Today (1999), ‘Special Report On E-Commerce in India’, Dec 21.
  • Stafford, T. F., Turan, A. and Raisinghani, M. S. (2004), ‘International and cross-cultural influences on online shopping behavior’, Journal of Global Information Management, 7:2, pp. 70-87.
  • Su, B. (2003) ‘Risk behavior of internet shopping: Comparison of college students versus nonstudent adults’, Proceedings of the 5th International Conference on Electronic Commerce (ICEC), Pittsburgh, Pennsylvania, USA. September 30 - October 03. Electronic edition (ACM DL).
  • Swaminathan, V., Elzbieta, L. W. and Bharat, P.R. (1999) ‘Browsers or buyers in cyberspace? An investigation of factors influencing electronic exchange’, Journal of Computer-Mediated Communication, 5:2, (online).
  • Tan, M. and Thompson, S.H.T. (2000) ‘Factors influencing the adoption of internet banking’, Journal of the Association for Information Systems, 1:5, pp. 1-42.
  • Yang, K.C.C. (2005) ‘Exploring factors affecting the adoption of mobile commerce in Singapore’, Telematics and Informatics, 22:3, pp. 257-277.
  • Yoh, E., Damhorst, M.L., Sapp, S. and Laczniak, R. (2003) ‘Consumer adoption of the internet: The case of apparel shopping’, Psychology and Marketing, 20:12, pp. 1095-1118.

  • Published Date : --