Factors influencing online shopping behavior: the mediating role of purchase intention

Abstract

Internet shopping is a phenomena that is growing rapidly nowadays. A peep into the exponential growth of the main players in this industry indicates there is still a large reservoir of market potential for e-commerce. The conveniency of online shopping rendering it an emerging trend among consumers, especially the Gen Y. The prevalence of online shopping has raised the interest of the retailers to focus on this area. Therefore, this study was to determine the relationship between subjective norm, perceivedusefulness and online shopping behavior while mediated by purchase intention. University students aged between 18 and 34 thatcurrently pursuing their studies in University Malaysia Perlis were selected as the subject of analysis. 662 out of 800 sets of questionnaires distributed were valid for coding, analyzing and testing the hypothesis. Collected data were then analyzed using SPSS version 18.0 and AMOS version 16.0. Structural Equation Modeling to examine the model fits and hypothesis testing. The conclusion can be depicted that subjective norm and perceived usefulness significant positively influence online purchase intention but subjective norm insignificant influence shopping behavior in a negative way. It is interesting to note that perceived usefulness also insignificantly influence online shopping behavior. Finding also revealed that purchase intention significant positively influence online shopping behavior. For future research, sample from working adults and other variables that related to online shopping were to be included to minimise sampling bias.