IntroductionOnline shopping or online retailing is a form of
electronic commerce whereby consumers directly buy goods or
services from a seller over the Internet without an intermediary
service. An online shop, e-shop, e-store, internet shop, web-shop,
web-store, online store, or virtual store evokes the physical
analogy of buying products or services at a bricks-and-mortar
retailer or shopping centre. The process is called
business-to-consumer (B2C) online shopping. When a business buys
from another business it is called business-to-business (B2B)
online shopping. The largest online retailing corporations are EBay
and Amazon.com, both of which are US-based.In 1990 Tim Berners-Lee
created the first World Wide Web server and browser. It opened for
commercial use in 1991. In 1994 other advances took place, such as
online banking and the opening of an online pizza shop by Pizza
Hut. During that same year, Netscape introduced SSL encryption of
data transferred online, which has become essential for secure
online shopping. Also in 1994 the German company Intershop
introduced its first online shopping system. In 1995 Amazon
launched its online shopping site, and in 1996 eBay appeared.In
this report we will try to explore current e-business scenario in
Bangladesh. Our research will be conducted in order to indentify
various challenges and obstacles in the process of e-shopping. We
will also try to shed light on probable solutions to those
obstacles and thus see the prospect of e-shopping in
Bangladesh.
Research Objectives:Objectives of the report can be defined as
follows: To analyze overall current scenario of e-shopping section
in Bangladesh To analyze the factors which are creating obstacles
in the path of e-shopping process. Factors that have been
considered in this aspect are: Preference for super store over
online shopping Consumers receptiveness over product quality
Difficulty in product delivery Lack of government financial
incentive To analyze the factors which provide that basis for
prospects and opportunities for e-shopping sector in Bangladesh.
Following factors have been considered in this regard. Perceived
convenience of e-shopping Security concern Product availability and
diversity Entrepreneurs interest Present state of infrastructure To
examine and analyze various e-shopping models that exist in our
country in present circumstances.
SignificanceAs we have discussed earlier e-shopping is a way of
conducting business over the Internet. Though it is a relatively
new concept in Bangladesh, it has the potential to alter the
traditional form of economic activities. Already it has its effects
on some large sectors such as communications, finance and retail
trade and it holds promises in areas of education, health and
government. The largest effects may be associated not with many of
the impacts that command the most attention (i.e. customized
product, elimination of middlemen) but with less visible, but
potentially more pervasive, effects on routine business activities
(i.e. ordering office supplies, paying bills, estimating
demand).
Background StudiesVarious kinds of researches have been
conducted over the years on e-shopping. Many of those reports
covered issues such as brief description of e-shopping, prospects
and challenges of that particular business in both global and local
perspective. Most of those reports however focused on online
purchase of manufacturing products other than services. Many of the
reports that we searched have studied e-shopping from an overall or
global view, however, we have taken only those issues in
consideration that can have an implication in Bangladeshs context.
This had to be done as there is a scarcity of reports focusing
exclusively on issues of prospects and challenges of e-shopping in
Bangladesh.Online shopping is the process whereby consumers
directly buy goods or services from a seller in real-time, without
an intermediary service, over the Internet. It is a form of
electronic commerce. An online shop, e-shop, e-store, internet
shop, web-shop, web-store, online store, or virtual store evokes
the physical analogy of buying products or services at a
bricks-and-mortar retailer or in a shopping center. The process is
called Business-to-Consumer (B2C) online shopping. When a business
buys from another business it is called Business-to-Business (B2B)
online shopping.History of e-shopping points to one event of 1990
when Tim Berners-Lee created the first World Wide Web server and
browser. It opened for commercial use in 1991. In 1994 other
advances took place, such as online banking and the opening of an
online pizza shop by Pizza Hut. During that same year, Netscape
introduced SSL encryption of data transferred online, which has
become essential for secure online shopping. Also in 1994 the
German company Intershop introduced its first online shopping
system. In 1995 Amazon launched its online shopping site, and in
1996 eBay appeared. Now lets have a look at e-shopping in the
context of our country. In Bangladesh situation isnt that much
favorable for entrepreneurs due to high inflation rate,
interruption of regular power supply, inadequacy of capital
sourcing for startup entrepreneurs. Despite all these barriers our
entrepreneurs are taking initiatives to make progresses happen not
only for themselves but also for the society and the country as a
whole. As technology is becoming an everyday accessory and rate of
Internet penetration is increasing like wild fire people tendency
to on-line shopping is on rise. The most important reason behind a
rise in on-line shopping trend is time scarcity of modern life
style. We are now living in an age of scarce time. Shopping
regularly for daily products is a luxury to this time scarce
society. As the trends show in near future the rate and extend of
on-line shopping will be increased in manifold. Taking indicators
like increasing Internet penetration, life style change, time
scarcity into consideration it can be a safe prediction that online
shopping will be a phenomenon in near future.
ScopeThe scope of the report is limited to the practical and
theoretical aspect. Practical experience and data collection from
different companies on online shopping in Bangladesh is considered
in this process and analysing this data this report is furnished.
The report also covered information from some books, magazines,
articles and various websites of different online shopping stores
of the country and incorporation of this ideas/knowledge in the
report have been introduced as well. The report will cover
following broad areas: Current scenario of e-shopping in Bangladesh
Various obstacles in the path of e-business process Opportunities
and prospects of e-shopping Different e-shopping models
Methodology Data Collection:Data have collected both from
primary and secondary sourcesPrimary source: Survey, face-to-face
interview.Secondary source: Online reports, websites, different
books, articles, journals etc. Methods for Analysis:Regression
models, hypothesis and questionnaire have been developed to carry
out the research. Details of those have been presented in following
segments. Apart from that some theoretical analysis have also been
carried out to shed light on various aspects of the report.
LimitationsFollowing can be considered as the limitations of the
report: Focus can seem to be a bit narrow one, as we will be
concentrating only on e-shopping rather than the whole e-business
thing. Although being a relatively theoretical report, the
information regarding comparison between the on ground situation in
Bangladesh and abroad is unavailable in the report. As the online
shopping is still at its booming yet auspicious condition in
Bangladesh, the true picture of the real situation is not so easy
to identify. Although there are numbers of studies have been done
so far in this particular issue on foreign online shopping,
adequate number of documents is yet not available to review and
prepare comprehensive report from Bangladesh perspective and it has
been reflected in the report prepared.
Problem IdentificationAs we mentioned earlier the objective of
the report is assess the prospects and challenges of e-shopping in
Bangladesh. To achieve this objective we have considered various
factors that can stimulate or hinder e-shopping operations in our
country. The problems which we sought out to solve through our
report are given below:Core ProblemPresent state and future of
e-shopping in Bangladesh in terms of prospects and challenges it
faces.Research Problem Which factors can stimulate growth and
enhance the prospect of e-shopping. Which factors can pose
significant hindrance in the path of e-shopping operations in our
country.
Approach to the ProblemTheory DevelopmentTo assess the present
and future condition of e-shopping first we had to identify the
factors involved in the subject matter. Our research pertaining to
report unearthed quite a few factors that have substantial role to
play in the context of e-shopping. Those factors have been further
categorized depending on their respective role in the regression
models that we have developed for our research. Categorization of
the factors is as follows:Factors used to assess prospects
Perceived convenience Security concern Product availability and
diversity Entrepreneurs interest Present state of
infrastructureFactors used to assess challenges Preference for
super store over online shopping Consumers suspicion over product
quality Difficulty in product delivery Lack of government financial
incentiveModel DevelopmentTo conduct statistical analysis we have
developed two regression models. Following are the models used in
the reportRegression model to assess prospect:Y = X1b1 X2b2 + X3b3
+ X4b4 + X5b5Y = Prospect of online shopping in BDX1 = Perceived
convenienceX2= Security concernX3= Product availability and
diversityX4= Entrepreneurs interestX5= Present state of
infrastructure
Regression model to assess challenges:Y= X1b1 + X2b2 + X3b3 +
X4b4 Y= Challenges of online shopping in BDX1= Preference for super
store over online shoppingX2= Consumers suspicion over product
quality X3= Difficulty in product delivery X4= Lack of government
financial incentiveInformation SearchInformation has been searched
through both primary and secondary sources. Survey questionnaire
has been extensively used to collect data from primary sources. In
other cases various reports, journals have studied to assess the
situation and obtain information related to the report
topic.Research Question and Hypothesis DevelopmentIn the earlier
part of our research process, through exploratory research, we have
identified some factors that has a role to play in the prospects
and challenges of e-shopping. To measure the influence of these
factors, we needed to conduct some research questions and
hypothesis. We developed our questionnaire in such a way that we
could get adequate information on various factors and we
established our hypothesis to check the validity of various factors
involved.Research QuestionsTwo sets of questionnaire have been
developed two collect the data. One was to have feedback from
consumers and the other was used to have feedback from owners. Both
of the questionnaires have been appended in the Appendix section of
the report.HypothesesFollowing hypotheses have been developed to
carry out the research. Two categories of hypotheses were developed
one group was related to prospects and the other was related to
challenges.Hypotheses related to prospectsIn case of the Prospect
model, the null hypotheses can be put as:1. Ho: Positive prospects
on e-shopping does not depend on convenience.H1: Positive prospects
on e-shopping depends on convenience.2. Ho: Positive prospects on
e-shopping does not depend on security concerns.H1: Positive
prospects on e-shopping depends on security concerns.3. Ho:
Positive prospects on e-shopping does not depend on availability
& diversity.H1: Positive prospects on e-shopping does depend on
availability & diversity.4. Ho: Positive prospects on
e-shopping does not depend on entrepreneurs interest aka
incentives.H1: Positive prospects on e-shopping does depend on
entrepreneurs interest aka incentives.5. Ho: Positive prospects on
e-shopping does not depend on infrastructure.H1: Positive prospects
on e-shopping does depend on infrastructure.
In case of the Challenges model, the null hypotheses can be put
as:1. Ho: Challenges in e-shopping is not motivated by Customer
receptiveness.H1: Challenges in e-shopping is motivated by Customer
receptiveness.2. Ho: Challenges in e-shopping is not motivated by
Consumers suspicion over product quality.H1: Challenges in
e-shopping is motivated by Consumers suspicion over product
quality.3. Ho: Challenges in e-shopping is not motivated by
Difficulty in product delivery.H1: Challenges in e-shopping is
motivated by Difficulty in product delivery.4. Ho: Challenges in
e-shopping is not motivated by Lack of government financial
incentives.H1: Challenges in e-shopping is motivated by Lack of
government financial incentives.Research DesignTo find out the
triggering factors, we have conducted the research in the
Exploratory Research Design format.There has been an Approach
developed for further research and done to find and fix its
components like- Objective/Theoretical Foundations, Analytical
Model, Research Questions, Hypotheses and Specification of the
Information needed. Now we will shift to a Quantitative approach
known as Conclusive Research Design. Because its will be more
efficient, structured and formal design process. Data analyzing are
more reliable in this approach. So now we will conduct the
Descriptive and the Causal Research to meet the proper accuracy on
our marketing research process.Questionnaire DesignFor the purpose
of the study two sets of questionnaires have been developed, one is
to take feedback from consumers and another is to take feedback
from owners. Based on exploratory research we have developed 20
questioners altogether. This research included questions
considering five factors to assess prospects and four factors to
assess challenges. A Likert scale was used to question the
respondents on the five point scale. The respondents were asked to
rate on the scale between Strongly Agree and Strongly Disagree.
This research aims to study prospects and challenges involved in
e-shopping in Bangladesh. This project primarily uses quantitative
tools with help from qualitative information. For quantitative
results, the research design involves descriptive research using
survey method. Thus a structured questionnaire has been used to
elicit the specific information. The sample size used for the
project is 30 respondents for consumers and 12 respondents for
owners.
Current Scenario of e-shopping in BangladeshBefore going into
prospects and challenges lets first discuss a bit about the current
scenario of e-shopping in Bangladesh as found from various reports
and websites. Of all the operating e-shopping businesses three
broad segments can be classified, one group serves as an e-shopping
hub connecting buyers and sellers; another group sells their own
products through their websites; and the other group uses social
networking sites to conduct e-shopping business. Below are some
brief descriptions of these groups.Companies that work as a
shopping hubLets first look at some of the companies that work as a
shopping hub.Akhoni.comAkhoni.comis an online marketplace featuring
discount deals with popular businesses.It provides discount deals
with large number of businesses like- restaurants, hotels,
theaters, fashion houses, Internet services, transports, beauty
parlors and saloons, theme parks, gymnasiums, furniture shops,
sports and recreation centers, etc.Customers can sign up in the
website to get regular deal alert on their email at free of cost.
They can receive the deal voucher instantly on their web browser
and through email by making payment instantly using VISA,
MasterCard or DBBL Nexus card or can also choose to book the deal
online and pay cash when the coupon is delivered to their home.
Then, the customer will show the voucher at the merchant location
to enjoy the deal.Attraction of the website is offering huge
discounts to the customers, 50 to 90 per cent discounts are
alluring people to log on to the website instead of going out for
buying the products. Price hike is one of the major concerns of
mass people so offering discount opens up lots of opportunities for
the company mentioned above.Clickbd.comClickBD.com started its
operations in April 14, 2005, according to Clickbd.com, as the
first e-commerce portal in Bangladesh. ClickBD is an online
marketplace where anyone can sell or buy almost anything.The site
has a strong and growing community of users who trade in a wide
range of item categories including Electronics, Cameras, Phones,
Computers, CDs, Mobiles, Fashion Accessories, Music, and
Travel.Through a world-class technology infrastructure ClickBD
enables & simplifies e-commerce for Bangladeshs ever expanding
online community.Cellbazar.comOriginally designed as a classroom
project at MIT, CellBazaar is one of the most successful online and
mobile shopping platforms. CellBazaar service
(http://www.cellbazaar.com) allows people to buy and sell over
mobile phones or computers.Anyone with a computer and internet, as
well as Grameenphone users through their mobile phones are taking
advantages of this service. Users can buy agricultural products,
such as rice, fish, chicken, as well as large scale items like car,
motorcycle, TV, fridge, apartment, land, etc. People can also offer
services such as language tutoring (very relevant for migrants
going abroad).The service is customer focused, who post items for
sale, delete items after they are sold, and even adjust their own
prices if they fail to get a buyer. For the first time, the
producers of agricultural products can directly negotiate price
with buyers and agro-processors.The technology works on four
synchronized platforms SMS (send SMS to 3838 to buy and sell), WAP
(easy, graphic interface), WEB (viewable by global audience), and
IVR (call 3838 to hear latest items).Hutbazar.comHutbazar.com, a
sister concern of Right IT Corporation, pioneered online comparison
shopping and today is one of the fastest growing shopping
destinations for a comprehensive set of products from thousands of
trusted stores from across the Web.With a singular focus on
shopping, Hutbazar.com offers shoppers easy-to-use search tools,
engaging content and time saving navigation.There are also other
sites such as Cloudbd.com and Bdhaat.com who are successfully
running similar business ventures.Companies that sell their
products through their websitesNow lets turn our focus on the
companies who sell or are in the process to sell their own products
through their websites.Bashundhara Star CineplexBashundhara Star
Cineplex is the pioneer in the Dolby-Digital surround movie theater
experience in our country. Their infrastructure is the most
advanced one and world standard met facility in Bangladesh. At
present they havent yet gone live as far as their ticketing system
is concerned but they are in the process of realizing it soon.
According to their website the will soon be developing their
web-portal with capabilities of online booking and purchasing of
movie tickets. They are also going to provide superior online
choice of seats to their prime members.Amadergaan.comAmadergaan.com
is the biggest online portal for music in Bangladesh. They are not
just a site where you can discuss and analyze and get previews of
upcoming and buzzing music of the country but one can also purchase
albums or solos online. They promote anti-piracy, hence developing
authentic music sales and e-shopping. They dont exist only
virtually but time to time their forum organizes events where
musicians and music lovers can share the same platform for
interaction and exploration. Their technical infrastructure for
monetary transaction maintains high standard to prevent any
fraudulent activities. Companies that use social networking
sitesRecently, there has been a new form of online marketing
through the social networking sites (especially Facebook) by
entrepreneurs. Sellers have their detailed portfolio displayed
through these sites as business pages. These pages get displayed
through ads, through share of users. A massive number people using
social networking sites for entire online communication need, some
business person believe that this is a more effective form of
marketing. The payment system is similar to that of e-shopping
sites, only the environment is more cordial, site being based on
social networking. The owners create a personal link through active
approach towards customers and get a direct feedback through likes
and shares. Some of the ventures as such are listed below:
Shadamon, the exclusive fashion store Achillies, contemporary
fashion house
Following are some of the factors that are considered to be
crucial by various authors with respect to e-shopping. As we have
mentioned earlier authors have focused on these issues from a
global perspective and we have considered those points only which
can be applied in Bangladeshs context. Thus the below mentioned
factors play an important role determining the prospects and
challenges of e-shopping in Bangladesh.CustomersIn recent years,
online shopping has become popular; however, it still caters to the
middle and upper class as in order to shop online, one must be able
to have access to a computer and internet. Shopping has evolved
with the growth of technology. Electronic shopping exists as for
customers it is not only because of the high level of convenience,
but also because of the broader selection; competitive pricing and
greater access to information. So the volume of middle and upper
level customers having an access to internet and computer play a
pivotal role in the e-shopping industry.Information loadDesigners
of online shops should consider the effects of information load.
Mehrabian and Russel introduced the concept of information rate
(load) as the complex spatial and temporal arrangements of stimuli
within a setting. The notion of information load is directly
related to concerns about whether consumers can be given too much
information in virtual shopping environments. Compared with
conventional retail shopping, computer shopping enriches the
information environment of virtual shopping by providing additional
product information, such as comparative products and services, as
well as various alternatives and attributes of each alternative,
etc.
Pros and Cons of e-shopping in Bangladeshs ContextProspects and
challenges of e-shopping in Bangladesh stem from its advantages and
disadvantages. Principal advantage of e-shopping is that the
process enables buyers and sellers to do business without any
physical interaction. This alone is a great advantage considering
the hassle one has to go through to go to shop to pick up his or
needed merchandise. Online marketplace thus can save great amount
of time for consumers making their life a lot easier. Following is
some brief advantages and disadvantages of e-shopping that can be
applied from Bangladeshs perspective.AdvantagesConvenienceOnline
stores are usually available 24 hours a day and a visit to a
conventional retail store requires travel and given the current
traffic situation in BD the whole process eats up considerable
amount of peoples precious time. Thus Peoples need to save some of
their valuable time can be exploited by the e-shopping
industry.Information and reviewsOnline stores must describe
products for sale with text, photos, and multimedia files, whereas
in a physical retail store, the actual product and the
manufacturer's packaging will be available for direct inspection.
Some online stores provide or link to supplemental product
information, such as instructions, safety procedures,
demonstrations, or manufacturer specifications. Some provide
background information, advice, or how-to guides designed to help
consumers decide which product to buy. Some stores even allow
customers to comment or rate their items. There are also dedicated
review sites that host user reviews for different products. In a
conventional retail store, clerks are generally available to answer
questions. Some online stores have real-time chat features, but
most rely on e-mail or phone calls to handle customer
questions.Price and selectionOne advantage of shopping online is
being able to quickly seek out deals for items or services with
many different vendors. Search engines, online price comparison
services and discovery shopping engines can be used to look up
sellers of a particular product or service. Shipping costs (if
applicable) reduce the price advantage of online merchandise.
Another major advantage for retailers is the ability to rapidly
switch suppliers and vendors without disrupting users' shopping
experience. Some retailers (especially those selling small,
high-value items like electronics) offer free shipping on
sufficiently large orders. Another major advantage for retailers is
the ability to rapidly switch suppliers and vendors without
disrupting users' shopping experience.DisadvantagesFraud and
security concernsGiven the lack of ability to inspect merchandise
before purchase, consumers are at higher risk of fraud on the part
of the merchant than in a physical store. Merchants also risk
fraudulent purchases using stolen credit cards or fraudulent
repudiation of the online purchase. Computer security has thus
become a major concern for merchants and e-commerce service
providers, who deploy countermeasures such as firewalls and
anti-virus software to protect their networks. Computer security
has thus become a major concern for merchants and e-commerce
service providers, who deploy countermeasures such as firewalls and
anti-virus software to protect their networks. Phishing is another
danger, where consumers are fooled into thinking they are dealing
with a reputable retailer, when they have actually been manipulated
into feeding private information to a system operated by a
malicious party.Quality seals can be placed on the Shop web page if
it has undergone an independent assessment and meets all
requirements of the company issuing the seal. The purpose of these
seals is to increase the confidence of the online shoppers; the
existence of many different seals, or seals unfamiliar to
consumers, may foil this effort to a certain extent.Lack of full
cost disclosureThe lack of full disclosure with regards to the
total cost of purchase is one of the concerns of online shopping.
While it may be easy to compare the base price of an item online,
it may not be easy to see the total cost up front as additional
fees such as shipping are often not be visible until the final step
in the checkout process. The problem is especially evident with
cross-border purchases, where the cost indicated at the final
checkout screen may not include additional fees that must be paid
upon delivery such as duties and brokerage.PrivacyPrivacy of
personal information is a significant issue for some consumers.
Different legal jurisdictions have different laws concerning
consumer privacy, and different levels of enforcement. Many
consumers wish to avoid spam and tele-marketing which could result
from supplying contact information to an online merchant. In
response, many merchants promise not to use consumer information
for these purposes, or provide a mechanism to opt-out of such
contacts.Product suitabilityNot all products are equally suitable
for e-shopping rather products that are less suitable for
e-commerce include products that have a low value-to-weight ratio,
products that have a smell, taste, or touch component, products
that need trial fittings, most notably clothing, and products where
color integrity appears important.AccessibilityIn Bangladeshs
context access to internet is a major concern for e-shopping
businesses as a large portion of the countrys population is still
out of the reach of internet service. This event significantly
hampers e-shopping operations as it considerably minimizes target
market.
Various e-shopping ModelsIn order to cope with the present
world, almost all of the financial organizations and international
businesses in Bangladesh enter in the information highway through
hosting website. Banks and other financial organizations have
started online transactions like fund transfer, payment etc.Various
models of e-shopping can be categorized into four different groups:
Business to Consumer (B2C) Consumer to consumer (C2C) Business to
Business (B2B) Consumer to Business (C2B) Now lets have a
comparative analysis of those models and to assess the situation in
Bangladesh.Business to Consumer (B2C)B2C can also be referred as
retail and it is termed as the sale of goods and services from
businesses to the end-user. Many of the organization we
investigated will fall under this category. Being business
organization these institute can afford to have slightly greater
advantage over C2C category in some areas such as finance,
communication network.Consumer to consumer
(C2C)Consumer-to-consumer (C2C) electronic commerce involves the
electronically facilitated transactions between consumers through
some third party. A common example is the online auction, in which
a consumer posts an item for sale and other consumers bid to
purchase it; the third party generally charges a flat fee or
commission. The sites are only intermediaries, just there to match
consumers. They do not have to check quality of the products being
offered. This model of e-shopping is probably most commonly found
in Bangladesh. ClickBD.com, cellbazaar etc. will fall under this
category. They have few advantages in business operations such as
they dont accept responsibility for faulty products etc.Business to
Business (B2B) and Consumer to Business (C2B)Business-to-business
(B2B) describes commerce transactions between businesses, such as
between a manufacturer and a wholesaler, or between a wholesaler
and a retailer. Contrasting terms are business-to-consumer (B2C)
and business-to-government (B2G).On the other hand
consumer-to-business (C2B) is a business model in which consumers
create value, and firms consume this value. These two types of
e-shopping models are yet not that much prevalent in Bangladesh
yet. There might some problem related to infrastructure or may be
businesses are yet not ready to accept considerable amount of
product or services via these two particulars models.Analysis
PartSo far we have talked about various theoretical aspects of our
research. Now lets have a look at the analysis that we have
accomplished to achieve the stated objectives of the report.In the
first segment we have analyzed the demographics, preference of
product array and general perception of the respondents. Following
is presented the detailed part of the relevant
analysis.DemographicsIncome level:Income of individuals
FrequencyPercentValid PercentCumulative Percent
Valid< 5000516.116.716.7
5000 - 100001135.536.753.3
10000 - 25000722.623.376.7
25000+722.623.3100.0
Total3096.8100.0
MissingSystem13.2
Total31100.0
This information is quite important for this research on
e-shopping because potential involvement in e-shopping may depend
on income structure. Here we see people of income level 10,000 Tk
and onwards are mostly involved in e-shopping. However, students
alone, having income level 5,000 10,000 Tk constitute a vast
portion of e-shopping consumer base. Age Distribution:Age range of
customers
FrequencyPercentValid PercentCumulative Percent
Valid18-251032.333.333.3
26-35929.030.063.3
36-45825.826.790.0
46+39.710.0100.0
Total3096.8100.0
MissingSystem13.2
Total31100.0
As the graph shows majority of the respondents are from 18-25
years of age. So as the sample suggests the majority of the buyers
of online shopping will fall under that particular category of age.
Profession:Profession of Consumer
FrequencyPercentValid PercentCumulative Percent
ValidStudent1032.333.333.3
Service Person722.623.356.7
Business Professional929.030.086.7
Others412.913.3100.0
Total3096.8100.0
MissingSystem13.2
Total31100.0
As we see, the professional segmentation reveals that, mass
number of e-shopping consumers is students. An insight reveals that
these are college going students with net savvy lifestyle and a
steady pocket money source. Business and service people also
consume significantly. Other occupations may include medical
professionals, freelancers etc.Preference of Product Array/ Types
of products:
As we see, majority of online customers consume electronic
gadgets. The demand for clothes is also remarkable.General
perception about obstacle in e-shopping prospects:
Physical judgment impossibility has been given considerable
importance as an obstacle by many of the respondents. So, based on
this sample data we can state that peoples perception regarding
physical judgment impossibility is a significant obstacle in the
path e-shopping growth in Bangladesh.Sample SelectionTo select the
sample we have used non-probabilistic sampling method and which is
convenient sample. A sample size of 30 was used to conduct the
research on the consumer segment. Also, a sample of 12 e-shopping
service providers was also taken into account to analyze the
commercial perspective.Measurement of VariablesFor dependent
variable we have 2 items in 2 models. And for independent variable,
we had 9. Reliability and internal consistency of the multi item
scales for each of the constructs were measured using Coefficient
Alpha. And finally we use R2 value to determine how much our
independent variable can explain the dependent variable.
Reliability Coefficients(Overall)N of Cases = 30.0 N of Items =
15Alpha = .5381First, we will analyze reliability of the variables
in the Prospect modelDimensionNumber of ItemsAlpha Values
Convenience (independent)1.322
Security Concern (independent)1.229
Availability and Diversity (independent)2.155
Entrepreneurs interest/incentives (independent)1.230
Infrastructure (Independent)1.281
Prospects (Dependent)1.207
Interpretation The reliability test of dependent variable for
all the variables has been extracted from the reliability analysis.
From the previous exploratory research the alpha stands to be
.5381, which means that all the independent variables had an
internal consistency of 53.81% among each other. Again individually
from the column alpha if item deleted we can see that all the
independent variables are below 0.5 and so there will be drastic
significant change if any of the independent variables are
deleted.Now, for the Challenge modelDimensionNumber of ItemsAlpha
Values
Customer receptiveness/Preference over others
(independent)1.221
Product Quality (independent)1.207
Product delivery (independent)1.155
Lack of legislation and incentives (independent)2.379
Challenges (Dependent)1.302
InterpretationAgain individually from the column alpha if item
deleted we can see that all the independent variables are below 0.5
and so there will be drastic significant changes if any of the
independent variables are deleted.
Data Analysais Result & FindingsAnalysais TechniquesOnce the
reliability analysis was done, we calculated the mean value of
dependent variables and independent variables. Finally, we
completed the analysis part through regression analysis.Hypothesis
TestingIn this section, we will test the corresponding hypotheses
of respective regression models. In case of the Prospect model, the
null hypotheses can be put as:1 Ho: Positive prospects on
e-shopping does not depend on convenience.H1: Positive prospects on
e-shopping depends on convenience.2 Ho: Positive prospects on
e-shopping does not depend on security concerns.H1: Positive
prospects on e-shopping depends on security concerns.3 Ho: Positive
prospects on e-shopping does not depend on availability &
diversity.H1: Positive prospects on e-shopping does depend on
availability & diversity.4 Ho: Positive prospects on e-shopping
does not depend on entrepreneurs interest aka incentives.H1:
Positive prospects on e-shopping does depend on entrepreneurs
interest aka incentives.5 Ho: Positive prospects on e-shopping does
not depend on infrastructure.H1: Positive prospects on e-shopping
does depend on infrastructure.The findings from multiple regression
analysis are listed as follows:Independent VariablesStandardized
Regression Coefficient ()t valueP
Convenience.3281.603.012
Security concern.2381.120.027
Product availability & diversity.189.918.046
Entrepreneurs interest and incentives.001.020.135
Infrastructure.110.536.031
The observed table shows that all the variables have significant
values indicating major implications of these factors on e-shopping
prospects. And as we can see that only P value of Entrepreneurs
interest & incentives (.135) is larger than 0.05 and we know a
p-value less than 0.05 would result in the rejection of the null
hypothesis at the 5% (significance) level. So, in this case Ho null
hypothesis is not rejected which is positive prospects of
e-shopping does not depend on entrepreneurs interest and
incentives. Other fact such as convenience, security concerns etc.
have significant influence on the prospect of e-shopping in
Bangladesh. So clearly in order to improve the situation people
concerned need to take other factors into consideration and modify
them so that prospect of the sector is enhanced. In case of the
Challenges model, the null hypotheses can be put as:1 Ho:
Challenges in e-shopping is not motivated by Customer
receptiveness.H1: Challenges in e-shopping is motivated by Customer
receptiveness.2 Ho: Challenges in e-shopping is not motivated by
Consumers suspicion over product quality.H1: Challenges in
e-shopping is motivated by Consumers suspicion over product
quality.3 Ho: Challenges in e-shopping is not motivated by
Difficulty in product delivery.H1: Challenges in e-shopping is
motivated by Difficulty in product delivery.4 Ho: Challenges in
e-shopping is not motivated by Lack of government financial
incentives.H1: Challenges in e-shopping is motivated by Lack of
government financial incentives.The findings from multiple
regression analysis are listed as follows:Independent
VariablesStandardized Regression Coefficient ()t valueP
Customer receptiveness.3271.789.0078
Suspicion over product quality.180.878.0368
Difficulty in product delivery.2551.283.024
Lack of government financial incentives.177.958.0895
The observed table shows that all the variables have significant
values indicating major implications of these factors on e-shopping
prospects. And as we can see that only P value of Lack of
government financial incentives (.0895) is larger than 0.05 and we
know a p-value less than 0.05 would result in the rejection of the
null hypothesis at the 5% (significance) level. So, in this case Ho
null hypothesis is not rejected which is challenges of e-shopping
is not influenced by lack of government incentives. However, all
other variables do have substantial impact on the challenges faced
by e-shopping in our country. So to mitigate challenges factors
such as suspicion over product quality, difficulty in product
delivery etc. have to give prime importance. They need to be
minimized as much as possible to ensure smooth business operation
of e-shopping.
Regression AnalysisModel Summary (Prospects)ModelRR
SquareAdjusted R SquareStd. Error of the Estimate
1.636.824.361.38
From the regression analysis, we have found that the Value of R
Square is (.824). That means independent variables have 82.4%
impact over the dependent variable. In other words, the dependent
variable (Prospects in e-shopping) can be influenced 82.4% by the
independent variable (Convenience, Security, Availability &
Diversity, Entrepreneurs interest and Infrastructure).So, it means
we can judge the impact of dependent variables on the independent
variable with up to 82.4% accuracy. The rate of accuracy is quite
good and it would help us to how prospect of e-shopping will be
affected for a certain change in any of the significant factors
such as, perceived convenience, product availability and diversity,
security concerns etc. To enhance prospects of e-shopping the model
can be used to determine how much change in the stated factors is
needed to enhance the prospect to some considerable degree. Model
Summary (Challenges)ModelRR SquareAdjusted R SquareStd. Error of
the Estimate
1.492.842.317.41
From the regression analysis, we have found that the Value of R
Square is (.842). That means independent variables have 84.2%
impact over the dependent variable. In other words, the dependent
variable (Challenges in e-shopping) can be influenced 84.2% by the
independent variable (Customer receptiveness, Suspicion over
product quality, Difficulty in product delivery, Lack of government
financial incentive).Thus the figure suggests that we assess the
impact of a change of independent variable on the dependent
variable with about 84% accuracy. So, this model can be used to
determine the change in the level of challenges faced by e-shopping
given that any of the stated factors are changed. In this way the
model can be used to mitigate challenges in an effective and
efficient way.
RecommendationsSo far we have gone through various analyses
regarding the prospects and challenges of e-shopping. Based on our
analyses we have some recommendation to make which we believe will
enhance the over scenario of e-shopping sector in Bangladesh.
Perceived convenience of e-shopping has to be enhanced. Security
issues have to minimized as much as possible to ensure smooth and
continuous business transaction. Product diversity and availability
have to be increased. Infrastructural development is needed such
as, internet connectivity, access to banking services etc.
Customers suspicion regarding product quality has to be mitigated
as much as possible. Overall customer receptiveness has to be
increased if e-shopping is to flourish in our country. This can be
done through various effective marketing campaign and substantial
advertisement.
ConclusionDespite all of the disadvantages and challenges it has
been found from various papers and also from our analyses that
e-shopping is a growing sector in Bangladesh and has lots of
potential. Peoples interest to have a hassle free shopping is the
prime driving force of its prospects. Lots of infrastructural
development is needed to be done to make e-shopping a routine
activity for many of the countrys citizens as advised by some of
the authors. Both government and private sector initiatives are
needed to make sure sustainable growth in this sector.