Toward a theory of online buyer behavior using structural equation modeling

Abstract

This paper develops a theory of online buyer behavior to explain the process buyers go through while making an onlinepurchase in the digital marketplace. The theory has been empirically tested with primary data collected from mall-intercept systematic sampling and analyzed with structural equation modeling. The results indicate that buyers' attitudes to online shopping are shaped by their perceptions of value, ease of use, and the usefulness of online buying. The actual online purchase is influenced by their intention to use this option, which, in turn, is determined by their attitude toward onlineshopping. An actual online purchase was also found to give buyers an online shopping experience that significantly shaped their trust in online shopping and future intention to buy things online. Implications of the findings are also presented along with the recommendations.