Conference paper · 2018
Examining Internet Behavior of Young Technology-Literate Consumers in India
Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans, Association for Information Systems · Published
Summary
Vajjhala and Strang (2018) surveyed 63 online shoppers in the Indian states of Andhra Pradesh and Telangana to test which demographic and emotional factors predict the Internet purchase intention of young technology-literate consumers. They found that demographic factors including age (rho = −0.410, p = .001) and income level were related to purchase intention, and that happiness, satisfaction, positive feelings and pleasant feelings, but not excitement, predicted it. Satisfied consumers were almost 28 times more likely to plan a purchase, and a discriminant analysis using satisfaction alone correctly classified 90.5% of respondents.
Practical implication. Online retailers in India can look to consumer satisfaction and happiness with the Internet environment, which the study identifies as reliable levers for online purchase intention among young Indian consumers.
- The Problem
- Online retailers in India lack evidence on which demographic and emotional factors predict young technology-literate consumers’ Internet purchase intention.
- The Methodology
- Within-group correlational survey of 63 online shoppers in Andhra Pradesh and Telangana testing eight hypotheses with chi-square tests, Spearman correlation, binary logistic regression and discriminant analysis in Minitab 18.
- The Core Finding
- Among 63 Indian online shoppers, age and income were related to purchase intention, and happiness, satisfaction, positive and pleasant feelings — but not excitement — predicted it. Satisfaction alone correctly classified 90.5% of respondents.
- The Citation
- Vajjhala, N. R., & Strang, K. D. (2018). Examining Internet Behavior of Young Technology-Literate Consumers in India. In Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans. Association for Information Systems. https://aisel.aisnet.org/amcis2018/
The summary, key findings, methods, implications and relevance notes on this page are this website’s own description of the paper, written from the published abstract and text. The official abstract and citation details are given further down.
Key findings
- Finding 1. The study surveyed 63 technology-literate consumers in the Indian states of Andhra Pradesh and Telangana who had shopped online at least once; 61.3% were male and the mean age was 33.6 years (SD = 9.5).
- Finding 2. Among the Indian online consumers, age was negatively correlated with Internet purchase intention (Spearman rho = −0.410, p = .001, r² = 0.16), meaning younger participants were more likely to intend to buy online.
- Finding 3. Income level was related to Internet purchase intention among the Indian consumers (Pearson chi-square = 4.281, p = 0.04), with about 50% of intending purchasers in the ₹400,000–₹599,999 income bands.
- Finding 4. In the India study, satisfaction (rho = 0.67, r² = 45.9%) and happiness (rho = 0.621, r² = 38.6%) with the Internet environment were strongly correlated with purchase intention, and satisfied consumers were almost 28 times more likely to plan a purchase (odds ratio 27.9, 95% CI 4.43–175.89).
- Finding 5. Positive feelings about the Internet predicted purchase intention among Indian consumers (r² = 52.5%), with an odds ratio of 94, while excitement did not reliably predict purchase intention (r² = 9.5%).
- Finding 6. A discriminant analysis using happiness and satisfaction correctly classified 87.3% (55 of 63) of the Indian respondents as likely or unlikely to purchase online; using satisfaction alone, 90.5% (57 of 63) were correctly classified, including 94.2% (49 of 52) of those willing to purchase.
- Finding 7. In a combined binary logistic model with demographic controls, only happiness and satisfaction remained significant predictors of Internet purchase intention in the India sample (r² = 47.9%, adjusted r² = 46.1%).
Source: Vajjhala & Strang (2018), Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans, Association for Information Systems. Publisher’s page
The study in detail
What question does this paper answer?
Which demographic factors (gender, age, income) and psychological factors (happiness, satisfaction, excitement, positive and pleasant feelings) predict the Internet purchase intention of young technology-literate consumers in India?
What did the study find, in detail?
Surveying 63 Internet shoppers in Andhra Pradesh and Telangana, the study found that age (rho = −0.410, p = .001) and income level were related to purchase intention, and that happiness, satisfaction, positive feelings and pleasant feelings—but not excitement—predicted it. Satisfied consumers were almost 28 times more likely to plan a purchase, and a discriminant analysis using satisfaction alone correctly classified 90.5% (57 of 63) of respondents.
Why does it matter?
Because most online consumer behavior studies come from Western countries, the findings add evidence from India’s distinct culture of high power distance and low uncertainty avoidance, where consumers are likely to be willing to adopt new technology. The authors argue the results can be generalized to the upcoming generation of young consumers in India, while recommending replication with larger samples and other cultures.
This study is part of the evidence overview What drives technology adoption and online purchase intention? Evidence from Indian consumers, SMEs and a mandatory LMS
Methods and data
| Research question | Can demographic and emotional/motivational factors predict Internet purchase intention of young technology-literate consumers in India? |
|---|---|
| Design | Within-group correlational survey study testing eight hypotheses (H1a–c, H2a–b, H3a–c). |
| Sample | 63 respondents from a random sample frame of 110 in Andhra Pradesh and Telangana who had shopped online at least once (61.3% male, mean age 33.6). |
| Methods | Chi-square tests, Spearman correlation, simple and binary logistic regression with goodness-of-fit tests, and discriminant analysis in Minitab 18. |
| Main result | Satisfaction was the strongest predictor: odds ratio 27.9, and a one-factor discriminant model correctly classified 90.5% of respondents. |
| Implication | Consumer satisfaction and happiness with the Internet environment are reliable levers for online purchase intention among young Indian consumers. |
| Citation | Vajjhala & Strang (2018) |
Definitions and key terms
- Purchase intention
- A consumer’s stated likelihood of buying a product or service in the near future; here measured as a yes/no ‘probable’ versus ‘improbable’ response. — as used in Vajjhala & Strang (2018)
- Discriminant analysis
- A statistical technique that uses predictor variables to classify cases into predefined groups, such as likely versus unlikely purchasers. — as used in Vajjhala & Strang (2018)
- Uncertainty avoidance
- A Hofstede national-culture dimension describing how far a society tolerates ambiguity and risk; India scores a medium-low 40. — as used in Vajjhala & Strang (2018)
Abstract
In this study, we analyzed consumer Internet behavior in India since there were several unique cultural dimensions of interest. After reviewing the literature, we tested hypotheses that demographic and psychological factors such as happiness, excitement, satisfaction, positive feelings, pleasant feelings, gender, age, and income level could predict consumer Internet purchase behavior. We used Spearman correlation, binary logistic regression, and discriminant analysis techniques, which resulted in effect sizes ranging from 9.5% to 59.5%. Spearman correlation confirmed that gender, age, and income level were related to consumer Internet purchase behavior. Several binary logistic regression models with goodness-of-fit-tests revealed that all satisfaction, happiness, positive feelings and pleasant feelings, but not excitement, could predict consumer Internet purchase intention. A Discriminant Analysis model was able to correctly classify 87.3% of the sample respondents using two factors, and a second model with only one factor correctly categorized 90.5% of the consumers as willing to purchase on the Internet.
Abstract as published in Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans.
Keywords: Consumer; Internet; behavior; risk-avoidance; culture; power; regression; purchase
Limitations and open questions
- The sample size was small (N = 63), so the authors recommend replication with much larger samples in India.
- The study is limited by the honesty of participants’ survey responses and the amount of time available to conduct the study.
- Replication in other cultures is recommended for comparison and contrast.
Open questions
- Do satisfaction and happiness remain strong predictors of online purchase intention in much larger and more regionally diverse Indian samples?
- Why did age and income relate to purchase intention in the India-only sample but not in the combined USA-India sample?
Open questions from the evidence overview Technology adoption and digital consumers.
Practical implications
- Online retailers in India can focus on consumer satisfaction with the Internet environment: satisfied consumers were almost 28 times more likely to plan a purchase, and satisfaction alone correctly classified 90.5% of respondents.
- Online retailers in India can distinguish between emotional factors: positive feelings about the Internet predicted purchase intention (r² = 52.5%), while excitement did not reliably predict it (r² = 9.5%).
- Online retailers in India can note that younger participants were more likely to intend to buy online, as age was negatively correlated with Internet purchase intention (Spearman rho = −0.410, p = .001).
- For online retailers in India, the authors argue the results on Internet purchase intention can be generalized to the country’s upcoming generation of young consumers, while recommending replication with larger samples and other cultures.
Drawn from Vajjhala & Strang (2018), Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans, Association for Information Systems.
When this research may be relevant
This article may be relevant to literature on Internet purchase intention among young technology-literate consumers in India, satisfaction and emotional predictors of online buying, and national culture in consumer behaviour research. It shares its sample with the journal article on e-service consumption listed under related research.
Research topics addressed: consumer behavior; online shopping; e-commerce; purchase intention; India; Andhra Pradesh; Telangana; young consumers; national culture; Hofstede cultural dimensions; customer satisfaction; binary logistic regression; discriminant analysis; Spearman correlation
How to cite
- APA 7
- Vajjhala, N. R., & Strang, K. D. (2018). Examining Internet Behavior of Young Technology-Literate Consumers in India. In Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans. Association for Information Systems. https://aisel.aisnet.org/amcis2018/
- MLA 9
- Vajjhala, Narasimha Rao, and Kenneth David Strang. “Examining Internet Behavior of Young Technology-Literate Consumers in India.” Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans, Association for Information Systems, 2018. https://aisel.aisnet.org/amcis2018/.
- IEEE
- N. R. Vajjhala and K. D. Strang, “Examining Internet Behavior of Young Technology-Literate Consumers in India,” in Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans, 2018. [Online]. Available: https://aisel.aisnet.org/amcis2018/
BibTeX
@inproceedings{vajjhala2018online,
title = {Examining Internet Behavior of Young Technology-Literate Consumers in India},
author = {Vajjhala, Narasimha Rao and Strang, Kenneth David},
booktitle = {Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans},
year = {2018},
publisher = {Association for Information Systems},
url = {https://aisel.aisnet.org/amcis2018/}
}RIS
TY - CPAPER TI - Examining Internet Behavior of Young Technology-Literate Consumers in India AU - Vajjhala, Narasimha Rao AU - Strang, Kenneth David T2 - Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans PY - 2018 DA - 2018 PB - Association for Information Systems UR - https://www.narasimharao.net/research/online-purchase-intention-young-consumers-india/ LA - en ER -
Links and files
- Publisher’s page: https://aisel.aisnet.org/amcis2018/
- This page as text: https://www.narasimharao.net/research/online-purchase-intention-young-consumers-india/paper.md
- Permanent address of this page: https://www.narasimharao.net/research/online-purchase-intention-young-consumers-india/
Related work
Related work: the literature this study cites
The study draws on a review noting that most online consumer behavior models assume behavior follows from beliefs, attitudes, intentions and emotions[1], on the split between utilitarian and hedonic shopping motivation, the latter centred on enjoyment, satisfaction and happiness[2], and on the pleasure-arousal-dominance description of emotional response[3]. India is presented as under-studied: 75% of its Internet users were reported to be aged 25-35[4], and factors significant in Western samples were not relevant in Thailand and India samples[5]. Among consumers, the weight of satisfaction and happiness is consistent with the hedonic motivation account[2]. On culture, Yoon found uncertainty avoidance and long-term orientation, but not power distance or individualism, moderated e-commerce acceptance[6]; the study uses Hofstede scores to interpret results without testing culture.
- [1] Hwang, Y., & Jeong, J. (2016). Electronic Commerce and Online Consumer Behavior Research: A Literature Review. Information Development, 32(3), 377–388. https://doi.org/10.1177/0266666914551071
- [2] Huseynov, F., & Yildirim, S. O. (2015). Behavioral Issues in Ecommerce. Information Development, 32(5), 1343–1358. https://doi.org/10.1177/0266666915599586
- [3] Mehrabian, A., & Russell, J. A. (1974). The Basic Emotional Impact of Environments. Perceptual and Motor Skills, 38(1), 283–301. PMID:4815507 https://doi.org/10.2466/pms.1974.38.1.283
- [4] Khare, A. (2016). Consumer Shopping Styles and Online Shopping: An Empirical Study of Indian Consumers. Journal of Global Marketing, 29(1), 40–53. https://doi.org/10.1080/08911762.2015.1122137
- [5] Nittala, R. (2015). Factors Influencing Online Shopping Behavior of Urban Consumers in India. International Journal of Online Marketing, 5(1), 38–50. https://doi.org/10.4018/IJOM.2015010103
- [6] Yoon, C. (2009). The Effects of National Culture Values on Consumer Acceptance of Ecommerce: Online shoppers in China. Information & Management, 46(1), 294–301. https://doi.org/10.1016/j.im.2009.06.001
From the evidence overview What drives technology adoption and online purchase intention? Evidence from Indian consumers, SMEs and a mandatory LMS, which cites only works that appear in the studies’ own reference lists. This is a selection, not the full reference list of Vajjhala & Strang (2018).
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