Drivers for Online Shopping: Considering the Most Important Factors in Dhaka Metropolis, Bangladesh

Abstract

In Bangladesh, online shopping is gaining in motion. Various drivers are there for online shopping and the goal of this study has been set to explore drivers of online shopping according to their dominance among the young in the city of Dhaka. Adhering to a set of objectives; this study first identified a set of six motivational factors from among 21 variables (key factors for online shopping) with the help of an exploratory factor analysis. Then, a binary logistic regression was performed to find significant drivers for online shopping decision and the dominance of those drivers has been explored thereafter using marginal effect. In the aftermath, educational attainment as a socio-economic factor, and perceived risk (security), website factors, and product varieties as motivational factors have been found to be statistically significant drivers for online shopping. Considering the marginal effects, website factors, perceived risk, product varieties, and educational attainment have been found to have relevant effects. In this case, a Receiver Operating Characteristic curve (ROC) suggests that the fitted model has excellent discriminant power.

Keywords

• online shopping
• dominant drivers
• factor analysis
• logistic regression