The factors that influence Australian consumers’ online shopping adoption: an empirical analysis

Abstract

The rapid advances in the Internet technology have created a growing capability for consumers to shop online. Online shopping is a global trend and the shopping channel is becoming more evident in the Australian economy. However, to date only a few studies in various cultural settings have investigated the factors that influence consumers to shop online and none have been done on the perceptions of Australian consumers. This study seeks to close this research gap by identifying and analysing the main decision factors influencing consumers’ online shopping adoption in Australia. Primary data was collected using a self-administrated questionnaire in Sydney, Australia from 15th October to 28th October, 2015. The data was analysed using exploratory factor analysis and logit regression. The decision factors were ranked by importance based on the marginal effects results of the logit regression. Seven factors have been identified that impact on the choice of online shopping: websites, perceived risks, service quality, brand image, product variety, country-of-origin and demographics. This research contributes to the empirical literature on online shopping behaviour from a theoretical perspective as the modelling can be used as a framework for studies undertaken in different cultural environments. The results of the study also enable retailers to make informed decisions on their existing or future shopping channels. The conclusions drawn from this research also assist online marketers to formulate effective marketing strategies to enhance consumers’ online shopping experiences.