Who Spends the Highest Penny in Online Shopping?

Who Spends the Highest Penny in Online Shopping?

Prateek Kalia (Ludhiana College of Engineering & Technology, Ludhiana, India)
Copyright: © 2018 |Pages: 16
DOI: 10.4018/IJESMA.2018040101

Abstract

After familiarisation of masses with online shopping, online retailers aim to encourage e-shoppers to spend more. However, lack of research and literature related to this specific issue, make marketers look for reliable and accurate information to segment, target and position their products to most profitable customer. This article addresses this problem by answering two specific questions: (1) what are the demographic factors which affect annual online expenditure and, (2) what is the highest amount spent in single transaction by an e-shopper. Analysis of data collected through web survey of 308 e-shoppers revealed significant association between annual online expenditure and demographic factors like city of residence, age, gender and occupation. Similarly, association was found between highest amount spent in a single transaction and the demographic factors like age, gender, occupation and marital status. Subsequent chi-square post-hoc test via a standard residual method revealed some surprising results. For example, the highest online expenditure slab for annual expenditure done among different occupational categories was by students and servicemen contributing significantly to the omnibus chi-square statistics instead of the business class category.
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Conceptual Background And Hypotheses Development

Current research has been carried out in India, which is emerging as one of the most promising e-commerce markets in Asia-pacific region (Kalia, 2016b; Kalia et al., 2015). In last year, India has witnessed 30.5 percent growth in number of internet users, which is highest among all the countries of World (Internetlivestats.com, 2017a). Number of online shoppers will grow to 175 million by 2020, of which 60 million will be ‘high-value’ customers who will contribute to 68 percent of total spend (Thehindubusinessline.com, 2017). For mapping of such online shoppers’ hypotheses have been proposed in this study to check association between annual online expenditure and highest single transaction amount spent by online shopper with respect to demographic variables like city of residence, education, age, gender, family income, occupation and marital status. Conceptual background based on extensive literature review of previous research is discussed below.

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