How attractive is a locale to e-tailers? Introducing a regional e-tailing adoption model for non-metropolitan India

Abstract

In this paper, we develop a basic regional e-tailing adoption model based on the “diffusion of innovations” (DOI) theory and the “ability-motivation-opportunity” (AMO) framework. We empirically test the model using ordinary least squares and Poisson regression on district-level e-tailing packages data collected from India Post. Further, we use a neural network model to classify districts into high/low e-tailing potential with 78% accuracy. Apart from its theoretical contribution, the adoption model can also be used by e-tailers to support their regional targeting decisions.

Keywords

• E-commerce
• E-tailing
• Online retail
• Diffusion of innovation
• Ability-motivation-opportunity
• Adoption behaviour