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Online shopping in bangladesh: a study on the motivational factors for

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ISSN: 2249-877X Vol. 7 Issue 4, April 2017 Impact Factor: SJIF 2013=4.748
P ublis he d b y: S out h A s ia n A c ade m ic R es e arc h J our nals

SAJMMR:
South Asian Journal of
Marketing & Management
Research
( A D o u b le B l i n d R e fe r e e d & R e v ie we d I nt e r na t io na l J o ur na l)

DOI NUMBER: 10.5958/2249-877X.2017.00019.4

ONLINE SHOPPING IN BANGLADESH: A STUDY ON THE
MOTIVATIONAL FACTORS FOR ECOMMERCE THAT INFLUENCE
SHOPPER’S AFFIRMATIVE TENDENCY TOWARDS ONLINE
SHOPPING

Emon Kalyan Chowdhury*; Rupam Chowdhury**

*Assistant Professor
Department of Accounting, Faculty of Business Studies,
Premier University, Chittagong, Bangladesh.
**Lecturer
Faculty of Business Administration,
University of Science & Technology Chittagong,
Chittagong, Bangladesh.
Email ids: [email protected], [email protected]
Mob: +880-1717887424, +880-1554312471
______________________________________________________________________________
ABSTRACT

This study aims to know the motivational factors of e-commerce that drives the affirmative
tendency towards online shopping. To observe the behavior of online shoppers, a structured
closed ended questionnaire is used. The questionnaire is prepared to know their reactions on
online shopping experience from different perspectives. Correlation and regression analysis are
applied to measure the impact of motivational factors on online shopping. This study finds a
positive relation between the online shopping stimulators and shopping behaviors of
respondents. It also observes that shopping through online is extremely popular among the
youngsters but it failed to draw satisfactory attention of the mass people particularly old and
technologically challenged due to complex purchase process and payment settlement system,
lack of reliability, and traditional mentality of customers. . Looking into the importance of this
factor, Demangeot & Broderick (2007) urged upon all marketers to build up such atmosphere by
which the needs of online shoppers can be satisfied properly.

KEYWORDS: E-Commerce, Security, Popularity, Internet, Bangladesh

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INTRODUCTION
Online shopping has turned a growing business in today‟s technologically advanced world.
Bangladesh has tremendous potentiality in this sector. Recently, this potential sector of E-
Commerce has been experiencing a very good deal of changes. This change began in 1990s
worldwide, when the idea of e-commerce emerged and transformed the whole operation of retail
business (Chen & Chang, 2003). Revolution of internet has transformed the consumer‟s buying
behavior. Consumers not only login internet marketplace for shopping, but also, to acquire
product knowledge which may facilitate future purchase decision. Gehrt et al (2002) also opined
positively about the efficiency of online shopping in meeting consumer‟s needs and wants.
According to Brown, Pope, & Voges, (2003) online marketplace provides the shoppers an easy
access to the information of a brand‟s product quality, availability, specifications and prices
along with the comparison with another brand. Moreover, shoppers are more likely to enjoy
better flexibility by ordering their daily needs such as groceries as well as their very personal
items from the online marketplace rather than going to the crowded stores physically (Monsuwé,
Dellaert, & Ruyter, 2004). An online shopper is now much more capable of making intelligent
purchase decision than to the earlier age. Looking into the importance of this factor, Demangeot
& Broderick (2007) urged upon all marketers to build up such atmosphere by which the needs of
online shoppers can be satisfied properly.

The recent development of online market has evidently proven a strong emergence of online
retailing against the substitute traditional offline retailing (Rezaei, Amin, & Ismail, 2014). Online
retail business offers much more convenient shopping for consumers by facilitating greater time
savings (Szymanski, David and Hise, 2000). However, consumer may not prefer online shopping
for the lack of adequate trust (Lee & Turban, 2001). Chance of credit card fraud, lack of physical
contact, uncertainty of product quality and the distrust of retailers are the most common reasons
for consumer‟s pessimism about online marketplace (Bhatnagar, Misra, & Rao, 2000). Karim
(2013) showed in his research that the barriers for online shopping were the faults of delivery
system, inadequate security of online payment systems, lack of personal privacy and customer
services. On the other hand, the encouraging factors for online shopping were its uninterrupted
availability for 24 hours in a week, ease of use, less stress and time saving. Ahn, Ryu & Han
(2004) categorized two kinds of activities of internet shopping including: online activities
(system, information and service quality) and offline activities (product delivery). The cost of
product delivery in case of online shopping is relatively more than the delivery cost in case of
traditional shopping (Liang & Huang, 2002). However, time and charge of online store‟s product
delivery should be less (Grewal, Iyer & Levy, 2002). Moreover, efficient product delivery,
logistics and customer service should have been one of the most important factors of online
shopping (Grewal, Iyer & Levy, 2002, Gurau, Ranchod & Hackney, 2007).

E-Commerce in Bangladesh has been witnessing a rapid growth and a further significant growth
is expected to come in the forthcoming year. Figure 1: shows over the last three years the number
of internet subscribers has increased averagely 23.5 percent each year. Though the numbers of
online users in Bangladesh have been increasing rapidly each year, the number of online
shoppers has not increased at that same pace.

A Google research paper found that during 2014 only 22 percent of the total internet users did
online shopping and spent about BDT 7594.10 Crores on an average. There are some important

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factors from both party‟s (online marketers & online shopper‟s) perspectives, which may be held
responsible for such situation. Since, the consumers trust and confidence level have been
growing (Figure: 2) the perceptions of online shoppers on e-commerce need to be researched
more profoundly.

Figure: 1 Internet Subscriber in Bangladesh (Source: Adapted from the website of

Bangladesh Telecommunication Regulatory Commission: www.btrc.gov.bd)

Figure: 2 Bangladesh‟s E-Commerce Growth Rate

(Source: Adapted from Kaymu (2015); available at www.kaymu.com.bd/research)

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Some More Crucial Characteristics of Online Shopping in Bangladesh:
Figure 3: Geographic Distribution Figure 4: Demographic Aspects
79% of total e-commerce traffic in The online shopping in Bangladesh is majorly
Bangladesh comes from country‟s three major dominated by male customers. Among the
cities. Dhaka is holding leading position in total online shoppers 61% are belongs to 25-
internet shopping while Chittagong is not fall 34 age groups.
behind.

Figure 5: Types of Device Used Figure 6: Payment Methods

Most of Bangladeshi online shoppers use 95% of Bangladeshi online shoppers prefer
either desktop or laptop to do online Cash on Delivery. This is easiest and most
shopping. But, the use of Smartphone and secure payment method for the majority of the
tablet is not negligible. users.

Source: Adapted from Kaymu (2015); available at www.kaymu.com.bd/research

LITERATURE REVIEW

This research uses online purchases tendency as the dependent variable and explore the effects of
online merchants and intermediate characteristics, as well as other macro environmental
influences in online shopping behavior. The related literature covers topic such as e-commerce,
online security, buyer behavior, internet, payment policy of online shops, pricing, product
demonstration, ethics and feedback system of online shopping.
Ecommerce is an “electronically mediated information exchanges between the organization and
its external stakeholders” (Chaffey, 2011). Ecommerce is generally three in kinds such as: B2C,
B2B, and C2C. This research is mainly focused on Business to consumer (B2C) and consumer to
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consumer (C2C) ecommerce sites. The most important electronically mediated information
exchange in ecommerce is actual purchase through electronic or other means of payment
between the ecommerce site and the customers. But, what factors actually drives a customer to
make an actual purchase after going through all other means of ecommerce? This is the research
question. This study attempts to investigate several different factors which eventually guide a
customer to purchase from an online store.

Demangeot & Broderick (2007) mentioned that internet connection is a must for increasing sales
online as without fast and reliable internet no customer base can use the online store. Over the
last decade the rapid reengineering and development of internet has increased the number of web
users dramatically. The technological advancement in information technology and web based
platform has opened a new era for ecommerce and online shopping. Now, a firm can promote
and enhance images of products or services through web site. Therefore as per the finding of
Demangeot & Broderick (2007), detailed product information and improved service attracts
more and more people and changed their buying behavior from the traditional mode to latest
internet shopping particularly, in business to consumer (B2C) has escalated and online shopping
has become more popular to the mass people. It is convenience for which many customers these
days are turning into ecommerce website for their purchase rather than going to high street
(Monsuwé, Dellaert & Ruyter, 2004). According to Brown, Pope & Voges, (2003) the driving
tool for such ecommerce sites is good connection of internet. The more the customer base enjoys
a good and fast internet connection the more the sales of online stores.

Online security facilitates the online merchants with more customers as they feel much safer to
transact with the online site. This security could be provided from the online store or by the
external environment like concerned ministry of the government. Anthony and Fernandez (2000)
observed that “Government and industry organizations have declared information privacy and
security to be major obstacles in the development of consumer-related ecommerce. Risk
perceptions regarding Internet privacy and security have been identified as significant issues for
both new and experienced users of Internet technology” Consumers likes online store for their
purchase as they can do so from home or at their comfort. But, at the same time, if they do not
feel secure to transact online, they eventually turn off from purchasing online (Gong, Stump, &
Maddox, 2013). So, securities of online sites are rather very important besides only facilitating
speedy internet connection for consumers.

The online stores have to comply with ethics as security is a big issue for popularity of online
purchase. If the stores are operated with ethics, more and more customers will be willing to
purchase online. The security and privacy concerns can be eradicated with a good practice of
ethics. “While e-commerce has experienced amazing growth in recent years, so has consumers‟
concerns on ethical issues surrounding online shopping. Research outcomes indicate that the four
factors of the scale: security, privacy, non-deception and reliability are strongly predictive of
online consumers‟ satisfaction” (Roman, 2007). “Website reliance was positively related to
attitude toward the site. The results do not support a direct influence of perceived ethics on
behavioral intentions, whereas attitude and trust toward the website mediate these effects”
(Roman, 2007). This ethics of companies can be practiced through secure internet payment, good
return policy and also with safeguarding consumer rights of different aspects. Managing social
responsibility also could highlight company‟s ethics (Lloyd, 2010).

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Return policy is very much linked with ethics. Online stores supposed to have a transparent
return policy as people buying goods from online stores without checking it out physically. Also,
good return policy drives them to buy online (Monsuwé, Dellaert & Ruyter, 2004). Most of the
online retailers often prefer to use their return policy as a key competitive advantage for driving
consumer to their web stores. Mukhopadhyay & Setoputro, (2004) mentioned in their article that
the online shoppers naturally buy their product from the manufacturer or distributor sacrificing
the benefits of physical inspection of the product. This rises the possibility that customers will
have some discontent with the product and would like to return it. A well stated and widely used
return policy will definitely attract more customers. Although, the manufacturers will experience
the revenue escalation, conversely it will also increase cost due to growing likelihood of return
(Mukhopadhyay & Setoputro, 2004). Fraudulent return of good is a concern for online shops but
it is equally vital for the customers‟ positive tendency (Lloyd, 2010).

E-marketing Communication and online advertising both within the company and external
stakeholder is equally important for creating for customer‟s affirmative response towards online
shopping. Blog, banner adds. Pop ups “Internet advertising parallels traditional media
advertising, in which companies create content and then sell space to outside advertisers”
(Chaffey, 2011). The products should be displayed in a good manner. The 360 degree view of
the product should be available for the customers to have a good glimpse of the product. Product
demonstration video is very effective (Ahn, Ryu, Han, 2004). These days some stores are
providing IM facilities with the products to the customers. They provide apps.flipcart.com,
pepperfry.com Researches show that along with trust, security, pricing and other factors, product
demonstration also an important aspect of drawing internet shoppers‟ attention. Leo (2002)
observed that the tangibility of product through demonstration is vital as online shoppers
purchase products without physically touching or looking at it.

Pricing is a big issue for customers of online stores as they expect to pay less for goods and
services available in online stores. This makes it justified as online stores has low cost for
inventory management and office management. According to Ratchford (2009) “The Internet
influences prices in two ways: it is a channel for obtaining information, and it is a vehicle for
transactions. The major influences on online pricing that are reviewed are costly and limited
search, switching costs, reputation, heterogeneity in search costs, heterogeneity in demand for
services, and online–offline competition”. The online shops are taking those points into account
and pricing their product and service as they satisfy customers in terms of cost of products,
switching costs and other variables which could be compared between online and offline shops.

Buyer behavior plays a significant role in any purchase. Online purchase is no exception. There
are different types of buyer even in online buying and selling. The sellers need to make sure they
are serving all kinds of customers of all ages, classes, races. defined trust as, “the willingness of
a party to be vulnerable to the actions of another party based on the expectation that the other
will perform a particular action important to the trust or, irrespective of the ability to monitor or
control that other party” (Wang, Cheng & Jiang., 2009, Lee and Turban, 2001). But this trust
does not reflect on all ages, races and demography of online buyers. Online shopping is still
much more popular in younger to middle aged people who are comfortable with the use of
internet.

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Effective feedback system ensures the customer with good and accurate information about the
sellers. Also, in b2b environment it provides information about the buyers. This scenario is very
important because before doing business with another party, both the customer and retailer want
to know about each other. The factors could be points like how long they been in the market,
how is their return policy, how is their mode of delivery, how secure they are, what does their
customers say about them etc. “Attitudes toward online shopping and intention to shop online are
not only affected by ease of use, convenience, usefulness, and enjoyment, but also by exogenous
factors like consumer traits, situational factors, product characteristics, previous online
shopping experiences, post purchase services and trust in online shopping” (Monsuwé, Dellaert
& Ruyter, 2004). All these factors reflect on the feedback system provided by the online shops.
If an online buyer sees a good feedback of the buyer he/she is purchasing from, they feel assured
to purchase from that shop.

The macro environmental factors often play a role in customer‟s affirmative tendency of online
purchase. Such as the IT policy of the government and its institutions involved with Information
technology. “At the macro level of analysis, levels of perceived corruption within a country, and
overarching national values are identified as significant contributors to e‐readiness especially in
the B2B realm (Berthon, Pitt, Cyr, & Campbell, 2008). The customers of online shops tend to get
attracted to shop online when they see offline activities of online shops. It includes sponsorship
of online shops in various events and sports, public relation activities of online shops, corporate
social responsibility of online shop and any other common forms of marketing communications
(Ahn, Ryu, & Han, 2004, Gong, Stump, & Maddox, 2013, Al‐hawari, & Mouakket, 2012).

OBJECTIVES

Online shopping has been on its hike in Bangladesh. A good number of online stores have been
launched in the recent past. The presence of online store is now much more vivid through
different media advertisement including television, FM radio, newspaper, websites, YouTube,
Facebook etc. People who have better orientation with internet are more likely to involve either
in online shopping or searching information of their desired product. Here, such questions may
arise as:

1. What are the motivational factors of e-commerce (such as online and offline activities)
driving the affirmative tendency of online shoppers to do online shopping?

2. What are the characteristics of relationship between those factors with the shopper‟s
affirmative tendency?

In this research, the success factors that are related to the online and offline activities of e-
commerce were identified. The relationships between those identified factors with the online
shopper‟s affirmative tendency to do online shopping have also been investigated. More
specifically the objectives of this research are:

 Identifying online and offline activities of e-commerce that are significantly influential for
achieving affirmative response from the online shoppers.

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 Showing the relationships between the identified motivational factors of e-commerce and the
affirmative tendency of online shoppers to do online shopping.

 Recommending effective steps to make online shopping more acceptable to the consumers.

HYPOTHESES DEVELOPMENT AND CONCEPTUAL FRAMEWORK

Hypothesis 1:

H0: Ease of Product Ordering & Delivery do not have significant relationship with the shopper‟s
affirmative tendency to do online shopping in Bangladesh.

H1: Ease of Product Ordering & Delivery have significant relationship with the shopper‟s
affirmative tendency to do online shopping in Bangladesh.

Hypothesis 2:

H0: Security in Monetary Transaction does not have significant relationship with the shopper‟s
affirmative tendency to do online shopping in Bangladesh.

H1: Security in Monetary Transaction has significant relationship with the shopper‟s affirmative
tendency to do online shopping in Bangladesh.

Hypothesis 3:

H0: Availability of Product Information does not have significant relationship with the shopper‟s
affirmative tendency to do online shopping in Bangladesh.

H1: Availability of Product Information has significant relationship with the shopper‟s
affirmative tendency to do online shopping in Bangladesh.

Hypothesis 4:

H0: Wide Product Categories and Quality Control do not have significant relationship with the
shopper‟s affirmative tendency to do online shopping in Bangladesh.

H1: Wide Product Categories and Quality Control have significant relationship with the
shopper‟s affirmative tendency to do online shopping in Bangladesh.

Hypothesis 5:

H0: Convenience of Shopping and After Sales Service do not have significant relationship with
the shopper‟s affirmative tendency to do online shopping in Bangladesh.

H1: Convenience of Shopping and After Sales Service have significant relationship with the
shopper‟s affirmative tendency to do online shopping in Bangladesh.

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Hypothesis 6:

H0: Communication and Problem Solving do not have significant relationship with the shopper‟s
affirmative tendency to do online shopping in Bangladesh.

H1: Communication and Problem Solving have significant relationship with shopper‟s
affirmative tendency to do online shopping in Bangladesh.

CONCEPTUAL FRAMEWORK:

Ease of Product Ordering and Delivery

(EPOD) H1

Security in Monetary Transaction

(SMT) H2

Availability of Product Information

(API) H3 Shopper’s
Motivational Affirmative
Factors for Tendency to do
Ecommerce Wide Product Categories and Quality H4 Online Shopping
Control (WPCQC) in Bangladesh

Convenience of Shopping & After H5

Sales Service (CSASS)
H6

Communication and Problem Solving

(CPS)

Dependent Variable
Independent Variables

Figure 7: Conceptual Framework of Online Shopping in Bangladesh

METHODOLOGY

This study is designed to investigate the effects of some motivational factors of online shopping
that encompasses the online and offline activities of ecommerce (such as: Ease of Product
Ordering and Delivery, Security in Monetary Transaction, Availability of Product Information,
Wide product Categories and Quality Control etc.) on the affirmative tendency of shopper to do
online shopping in Bangladesh. For the fulfilling the research objective primary source of data

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was used although, secondary sources were also utilized to review the relevant literature of this
study. Structured closed ended questionnaire method was used to collect primary data. A
conceptual framework and questionnaires were structured in the light of the reviewed literatures.
A convenient sampling procedure was used in sampling. The population of interest was all the
residence of Chittagong Metropolitan areas, where the sample size was 250 that were selected
only from the different private universities in different locations at Chittagong city.
Questionnaire were provided to all kinds of University going people including students, teaching
staffs, academic staffs, office executives and visitors who has willingness to respond to the
questionnaire. Respondent‟s experience on online shopping and knowledge on Information
Technology were considered mostly in this regard. All the questions were asked to represents
how the respondents feel about the activities (i.e. online and offline) of online shopping i.e. the
level of satisfaction or dissatisfaction on a five point Likert Scale with 1 as “Strongly
Dissatisfied”, 2 as “Dissatisfied”, 3 as “Average”, 4 as “Satisfied” and 5 as “Strongly Satisfied”.
In order to summarize data, descriptive statistics were used. Mean and Standard Deviation of the
factors of online shopping had been calculated. To investigate the relationship between
independent variables (key factors of online shopping) with the dependant variable (shopper‟s
affirmative tendency to do online shopping in Bangladesh), correlation analysis and multiple
regression models were used.

EMPIRICAL FINDINGS
Following figures show the demographic characteristics of respondents;

Gender Age Group

70% 62%
Female 60%
30% 50%
40%
30% 19%
20% 15%
10% 4%
Male 0%
70%
15-24 25-34 35-44 45 above

Profession Education
Business 0% Other 3%

Private Employee 20% Postgraduate 1%

Govt. Employee 1% Graduate 38%

Student 79% Undergraduate 58%

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80%

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Marital Status Device used

Married 70%
11%
59%
60%

50%

40% 34%
30%

20%

10% 6%
1%
0%
Single Desktop Laptop Smartphone Other
89%

Shopping Frequency
70% 58%
60%
50% 38%
40%
30%
20%
10% 4%
0%
At least once in At least once in At least once in
a week a month a year

Figure: Demographic data of respondents

SOURCE: SELF SURVEY

The survey includes 70 percent of male and 30 percent of female respondents. Most of the
shoppers are aged between 25 to 35 years (62%) and very few are above 45 years. In profession,
most of them are students (79%) followed by private employees (20%). It is observed that 58%
of them are under graduate and 38% are master degree holders. Very insignificant portion (1%)
of the respondent is postgraduate. Majority of shoppers are single (89%). As far as device for
shopping is concern, they prefer smart phone (59%) rather than computer (40%). However, few
shoppers like to use telephone (1%) also. Very few of them (4%) shop in every week whereas
most of them (58%) do shopping at least once in a month (62%) although significant portion of
them (38%) are not frequent shopper.

Table 1: Reliability Coefficient (Cronbach’s Alpha) and Descriptive Statistics of the

Variables
Scale Mean Std. Deviation Item Cronbach's Aplha
EPOD 3.5505 0.34422 8 0.789
SMT 3.1184 0.34858 5 0.824
API 3.3634 0.25830 7 0.795
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WPCQC 3.1703 0.35002 7 0.862
CSASS 3.1216 0.47042 5 0.815
CPS 2.7269 0.35620 7 0.798
SATOB 3.1752 0.15759 6 0.692

Note: n=250 (Source: Survey data)

It is observed that all the Cronbach‟s Alpha values are above 0.60, this proves that the
questionnaire has internal consistency and the mean range from 3.11 to 3.72 indicates that the
responses of the customers fall within agreeable level. This consistency is also evident from the
values of standard deviations (less than 1) at each scale.

Table 2: Correlation matrix for motivational factors toward e-commerce and shoppers’
affirmative tendency to do online shopping in Bangladesh
EPOD SMT API WPCQC CSASS CPS SATOB
*
EPOD 1 .149 -0.064 -0.121 0.106 -.156 .351**
*

SMT .149* 1 0.064 -0.04 -0.037 .139* .459**

API -0.064 0.064 1 -0.102 -0.037 0.061 .241**
WPCQC -0.121 -0.04 -0.102 1 -.136* .248** .309**
CSASS 0.106 -0.037 -0.037 -.136* 1 .298** .575**
* * ** **
CPS -.156 .139 0.061 .248 .298 1 .628**
SATOB .351** .459** .241** .309** .575** .628** 1
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).

The correlation matrix indicates both positive and negative relations among the factors. Although
few relations are insignificant at both 1% and 5% significant level, shoppers‟ affirmative
tendency to do online shopping found significantly correlated to various independent variables.

REGRESSION ANALYSIS

Table 10 indicates that there is no multicollinearity problem as the Variance Influence Factor
(VIF) of collinearity statistics are less than 5. (Malhotra, 2002). The value of adjusted R square
shows that 59.03% of the variability in affirmative tendency to do online shopping in Bangladesh
is explained by all six factors of shoppers. The F-value 61.26 and p value 0.000 indicates that all
the areas of online shopping are closely associated with the buying behavior of the shoppers.

Table 3: Standardized regression on employee performance

Unstandardiz Standardize
ed d Collinearity
Coefficients Coefficients Statistics
Std. Toleranc
Model B Error Beta t Sig. e VIF
1 (Constan 0.00 0.000 .000 1.000
t) 0

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EPOD 0.16 0.000 0.364 2.96 0.000 0.911 1.098
7
SMT 0.16 0.000 0.369 4.28 0.000 0.928 1.077
7
API 0.16 0.000 0.273 3.75 0.000 0.969 1.032
7
WPCQC 0.16 0.000 0.370 3.15 0.000 0.864 1.157
7
CSASS 0.16 0.000 0.498 1.02 0.000 0.826 1.210
7
CPS 0.16 0.000 0.377 2.75 0.000 0.759 1.317
7
a. Dependent Variable: SATOB, R2:59.03, F-Value: 61.26 (Sig: 0.000)

The table shows that the impact of all the variables are significant as the p-values are less than
5%. It is seen that shoppers believe convenience of shopping and after sale service is highly
sensitive (0.498) as far as their online buying behavior is concern followed by, communicating
and problem solving, wide product categories & quality control, security in monetary
transaction, ease of product ordering and delivery and finally availability of product information.

Table 4: Implication of the study

Correlation Regression
Hypothesis Factors Decision Decision
Analysis Analysis
r P< B P<
H1 EPOD 0.351 0.000 Supported 0.364 0.000 Supported
H2 SMT 0.459 0.000 Supported 0.369 0.000 Supported
H3 API 0.241 0.000 Supported 0.273 0.000 Supported
H4 WPCQC 0.309 0.000 Supported 0.37 0.000 Supported
H5 CSASS 0.575 0.000 Supported 0.498 0.000 Supported
H6 CPS 0.628 0.000 Supported 0.377 0.000 Supported

Since all the p values are less than 5%, we can conclude that the null hypotheses for all the
factors toward online shopping tendency are rejected. Therefore, the factors have positive impact
on the online shopping experience. The sensitivity of after sale service of the products is very
high. It implies people are highly concerned about this facility provided by the company. In case
of direct physical purchase, customers can choose the products the way they want but if they buy
through online, they need to know more about the products and if they face any problem, they
want timely solution. Considering this choice of the customers most of the online based sellers
maintain all time customer care facility. In physical market, it is not possible to keep the
inventories of all the categories due to space and capital problems but if it is in the form of
online, company can offer huge array of collections and customers can choose their product from
various available options. Although many people are doing shopping online, they don‟t feel

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totally secured in all purchases. There are many options to pay for their products but very few are
secured and most of the avenues are still unsafe and the experience of shoppers is very bad.
Products are truly available if these can be ordered at any convenient mode and time and the
delivery is received at the door step of the customers at desired time period. Here, most of the
online based sellers take help from third parties (Commercial courier service) to deliver their
products. Finally, people are least concerned about the product information as there are many
options to know about the product details.

CONCLUDING REMARKS

Due to the technological advancement, availability of internet services, favorable government

policies, higher literacy rate, internet freak youngsters, involvement banking sector, growing
popularity of social media like Facebook, Twitter, reliable online payment platform like Payza,
busy life of people, huge options etc. online shopping has become very popular in Bangladesh.
Although there are many limitations, the tendency of shopping online is increasing rapidly. This
study has been conducted collecting data from 250 respondents through structured questionnaire.
By applying regression analysis, it is found that people are highly interested to buy products
through online and this tendency is gradually increasing. Customers‟ reaction toward online
purchase is very high when they care about convenience and after sale service followed by quick
communication and problem solution. Although security is a great concern in online transactions,
there are many reliable channels in Bangladesh which play vital role in settlement of transactions
like bKash (mobile based money transfer mode), m-banking, debit and credit card payment,
internet banking, cash on delivery facility etc. This study confirms a very bright prospect of
online shopping in Bangladesh since the response of customers found to be very positive
regarding every aspect of online shopping.

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