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ONLINE PURCHASING INTENTION FOR DURABLE GOODS AN

EXPLORATORY STUDY IN VADODARA, INDIA


By
DR. ASHUTOSH SANDHE
(Email : ashutoshsandhe@yahoo.com, Cell No.9898587826, 3, Shreeram Vatika, Near More
Megastore, Vishvamitri Road, Vadodara, Gujarat, India - 390011)
(Sr. Faculty at Commerce and Management Department, TeamLease Skills University, Tarsali,
Vadodara)

Abstract :
As markets expand, new modes of purchasing are being made available to customers. Especially, after
the growth of internet, the modern era could be that of virtual markets. This paper studies the online
purchasing intention of consumers in the city of Vadodara, Gujarat, India for Durable Goods. In India,
people have tended to purchase small items, electronic items which are of lesser value. Generally, it
has been seen that major purchases happen through the physical markets only. Hence, it is important to
know the purchasing intention of people for durable goods through the internet. This research was
conducted by testing the Theory of Reasoned Action and Planned Behaviour by Ajzen and Fishbein.
It was found that respondents have a positive intention for online mode. There is negativity only in
terms of belief about online shopping.

Key words: purchase intention, theory of reasoned action, theory of planned behavior, knowledge,
belief, subjective norms, motivation, attitude

ONLINE PURCHASING INTENTION FOR DURABLE GOODS AN EXPLORATORY


STUDY IN VADODARA, INDIA
INTRODUCTION
In todays era of competition for every inch of the market, organizations have to be always on guard
and be ahead of the market. To do this, lot of information is required about the market tastes and
preferences for various offerings. In the 21st century, in India, due to the open market policy of
successive governments, consumers have a lot of choice for various products or services.

The

bargaining power of consumers has risen due to this. Hence, it is immensely necessary to understand
his mind about how consumers purchase, what they purchase, when they purchase, why they purchase
and also why they dont purchase. Not only this, the mode of purchase has also undergone change and
is still changing with the advent of internet and e-commerce. Many companies are now trying to sell
their products and services through the internet and TV shopping channels. With busy lifestyles,
consumers are also finding these avenues more friendly and convenient. However, unlike some of the
developed countries, in India, people are a bit fearful about making purchases through the virtual
markets. Though, in the recent years, more and more people have started to buy goods and services
online. In this article, an attempt is made to study the purchasing intention of the consumers of
Vadodara, Gujarat towards online purchase of durable goods.
A lot of research has been undertaken in India as well as globally to study purchasing intention.
Purchase intention is the implied promise to ones self to buy the product again whenever one makes
next trip to the market (Fandos & Flavian, 2006; Halim & Hameed, 2005).1 What are the variables
that leads to one's willingness to purchase products online? Just as retailers seek to develop online
retail websites as profitable channels of distribution, researchers pursue answers to this very question.
In the same line of research, several approaches have been identified and used including those based
upon behavioral economics (c.f., Thompson and Yu, 2005), demographics and lifestyle analysis (c.f.,
Sorce et al., 2005; Alreck and Settle, 2002; Swaminathan, 2003), and online merchandising effects
such as product recommendations and shopping lists (c.f.,Senecal et al., 2005; McKinney, 2004;
Mandel and Johnson, 2002; Wind and Rangaswamy, 1999).2 The literature suggests that recently,
researchers have started to study the purchasing intention of consumers for online purchases.
Accordingly, theories like the Technology Acceptance Model (TAM), Theory of Planned Behaviour
(TPB) / Theory of Reasoned Action (TRA), Theory of Consumer Involvement, etc. have been applied
to study online purchasing intention and behavior of consumers.

Muhammad Irfan Tariq, et al., (2013), Customer Perceptions about Branding and Purchase Intention:A Study of FMCG
in an Emerging Market, J. Basic. Appl. Sci. Res., 3(2), 340-347
2
Michael Bosnjak, et al., (2007), Personality determinants of online shopping: Explaining online purchase intentions using
a hierarchical approach, Journal of Business Research, 597605

Ajzen and Fishbein formulated in 1980 the theory of reasoned action (TRA). This concept was put
forward as a result of study of attitude research from the Expectancy Value Models. Ajzen and
Fishbein formulated the TRA after trying to estimate the gap between attitude and behavior. This
concept of TRA was related to voluntary behavior. However, as more studies were undertaken it was
observed that behavior appeared not to be 100% voluntary and under control. This resulted in the
identification of concept of perceived behavioral control. With this addition the theory was called the
theory of planned behavior (TpB). The theory of planned behavior is a theory which predicts
deliberate behavior, because behavior can be deliberative and planned.
The Theory of Planned Behavior (Ajzen, 1985, 1991) posits that both attitude toward a behavior and
subjective norm are immediate determinants of intention to perform a behavior. Attitude toward a
behavior is recognized as a persons positive or negative evaluation of a relevant behavior and is
composed of a persons salient beliefs regarding the perceived outcomes of performing a behavior. On
the other hand, subjective norm, a function of normative beliefs, represents a persons perception of
whether significant referents approve or disapprove of a behavior. The Theory of Planned Behavior
further proposes that intention to perform a behavior is the proximal cause of such a behavior.
Intentions represent motivational components of a behavior, that is, the degree of conscious effort that
a person will exert in order to perform a behavior. Specifically, it proposes that perceived behavioral
control, in conjunction with attitude and subjective norm, is a direct predictor of behavioral intention.
Perceived behavioral control is the perception of ease or difficulty in performing a behavior. The
aspect of ease or difficulty specifically relates to whether or not a person perceives that he/she
possesses requisite resources and opportunities necessary to perform the behavior in question.
Empirical evidence indicates that the addition of perceived behavioral control to the traditional
attitude-behavioral model has resulted in meaningful improvements in the prediction of intentions
(Ajzen, 1991).3

Soyeon Shim, et al., (2001), An Online Prepurchase Intentions Model: The Role of Intention to Search, Journal of
Retailing, 77, page 397416.

DURABLE GOODS
For the purpose of this research, durable goods were categorized as underCATEGORIES OF DURABLE GOODS
White Goods
Refrigerators
Washing Machines
Air-Conditioners
Speakers and Audio Equipments

Kitchen Applliances/
Brown Goods
Mixers
Grinders
Microwave Ovens
Iron
Electric Fans
Cooking Range
Chimneys

Consumer
Electronics
Mobile Phones
Televisions
MP3 Players
DVD Players
VCD Players

Source: KPMG, Consumer Durables,Market & Opportunities


INDIAS CONSUMER MARKET
According to IBEF (India Brand Equity Foundation) in its report of August 2013, India is one of the
largest growing electronic markets in the world. India has worlds third largest Televisions Industry.
By 2025, India would rise from the twelfth to the fifth largest position in the consumer durables
market in the world; the market is expected to reach USD12.5 billion by 2015. 4
LITERATURE REVIEW :
Soyeon Shim, Mary Ann Eastlick, Sherry L. Lotz and Patricia Warrington (2001)
In this study, an Online Prepurchase Intentions Model was proposed and empirically tested in the
context of search goods. The focus of this research was to determine whether intent to search the
Internet for product information is a key element for marketing researchers to employ in predicting
consumers Internet purchasing intentions. Data was collected through a mail survey to computer users
who resided in 15 U.S. metropolitan areas. Two-stage structural equation modeling was employed to
test hypotheses. The results showed that intention to use the Internet to search for information was not
only the strongest predictor of Internet purchase intention but also mediated relationships between
purchasing intention and other predictors (i.e., attitude toward Internet shopping, perceived behavioral
control, and previous Internet purchase experience). Direct and indirect relationships between two
antecedents (attitude toward Internet shopping and previous Internet purchase experience) and Internet
purchase intention were also found.5

http://www.ibef.org/August 2013
Soyeon Shim, et al., (2001), An Online Prepurchase Intentions Model: The Role of Intention to Search, Journal of
Retailing, 77, page 397416.
5

Hans van der Heijden, Tibert Verhagen and Marcel Creemers(2003)


This paper explored the factors that influence consumers intentions to purchase online at an electronic
commerce website. Specifically, purchasing intention was studied using two different perspectives: a
technology-oriented perspective and a trust-oriented perspective. Antecedents of online purchase
intention that have been developed within these two perspectives were summarized and reviewed. An
empirical study in which the contributions of both perspectives are investigated was reported.
Perceptions of 228 potential online shoppers regarding trust and technology and their attitudes and
intentions to shop online at particular websites were studied. In terms of relative contributions, it was
found that the trust-antecedent perceived risk and the technology-antecedent perceived ease-of-use
directly influenced the attitude towards purchasing online.6
Jae-Il Kim, Hee Chun Lee and Hae Joo Kim (2004)
This research was aimed at studying various factors affecting online search intention which has been
found to be a key predictor of online purchase intention. Data was collected from a sample consisting
of mostly young adults with familiarity of computer use and online shopping experience. A structural
equation model (SEM) was employed to test hypotheses. According to the findings, utilitarian value of
Internet information search, hedonic value of Internet information search, perceived benefits of
Internet shopping, perceived risk of Internet shopping, and Internet purchase experience predicted
online search intention well. The findings also showed that online search intention positively affects
online purchase intention. Finally, theoretical and managerial implications were discussed.7
Michael Bosnjak , Mirta Galesic and Tracy Tuten (2007)
What determines whether one purchases products online or through another channel? Just as retailers
seek to develop online retail websites as profitable channels of distribution, researchers have pursued
answers to this very question. In pursuing this line of research, several approaches have been utilized
including those based upon behavioral economics, lifestyle analysis, and merchandising effects. While
some of this work identifies the potential moderation of personality traits most of it focuses on factors
related to time, costs and benefits, and shopping context. Following the hierarchical approach to
personality developed by Mowen (Mowen J. The 3M Model of Motivation and Personality. Norwell,
MA: Kluwer Academic Press, 2000.), this study tried to understand online purchase intent using
personality constructs. Michael Bosnjak , Mirta Galesic and Tracy Tuten in 2007 used data from an

Hans van der Heijden, et al., (2003), Understanding online purchase intentions: contributions from technology and trust
perspectives, European Journal of Information Systems 12, 4148
7
Jae-Il Kim, et al., (2004), Factors Affecting Online Search Intention and Online Purchase Intention, Seoul Journal of
Business, Volume 10, Number 2, page 28 -48

online consumer panel to develop a hierarchical model of personality useful for predicting consumer
intentions to purchase products and services online.8
Ayu. Karbala and Harimukti (2012)
This paper studied and contributed about the factors that affect consumer to buy a product by looking
at several factors that can influence like product, price, place, and promotion. The objective of the
research was to measure the effect of marketing mix (4 Ps) of Toimoi store, Indonesia. A lot of
character, behavior, the way of thinking about the product, so to be able to survive in these conditions,
Toimoi must do all of the ways to attract as many customer, which are the factors that can influence
customer to come into the store and make a purchase. This research involved Toimois management
and 160 Toimois customers to obtain the required data.
The research proved that product design factors and the variety of products gave the greatest effect on
consumers purchase intentions.9
Al-Azzam, Abdel Fattah Mahmoud (2014)
This study proposed a framework to increase researchers understanding of young consumers
attitudes toward Internet shopping and their intention to shop on the online in Jordan. Moreover, this
research also tried to overcome the drawback of prior studies and evaluate up to five antecedent
factors in one research model. Also, this research extended the theory of planned behavior (TPB) by
including five important factors as external beliefs to online consumer behavior. The five factors were
identified by previous research, mostly in the areas of management information systems and marketing
science. This research was performed with a survey of 500 consumers who had online shopping
experiences. The collected survey data was tested to validate each hypothesis developed in the study
model. The findings of data analysis confirmed that perceived ease of use; perceived behavioral
control, attitude, and perceived usefulness are essential antecedents in determining online consumer
behavior. However, the study found no significant relationships between trust and online purchasing
behavior developed in the study model. The findings of data analysis confirm perceived ease of use;
perceived behavioral control, attitude, and perceived usefulness are essential antecedents in
determining online consumer behavior. However, the study found no significant relationships between
trust and online purchasing behavior10

Michael Bosnjak, et al., (2007), Personality determinants of online shopping: Explaining online purchase intentions using
a hierarchical approach, Journal of Business Research, 597605
9
Ayu. Karbala and Harimukti, (2012), Analyzing the Factors That Affecting Consumers Purchase Intention in Toimoi
Store, Indonesia, 2nd International Conference on Business, Economics, Management and Behavioral Sciences, Indonesia,
page 80-83.
10
Dr. Abdel Fattah Al-Azzam, (2014), Evaluating consumer acceptance of online purchasing: investigating factors
influencing on purchase intentions, International Journal of Economics, Commerce and Management, Vol. II, Issue 4,
page 1-18

Kwek Choon Ling, et al. (2011)


The purpose of this research was to evaluate and validate the impacts of perceived technology and
perceived risk on the online trust and how online trust is related to online purchase intention. This
study also investigated the impact of online trust in mediating the relationship between perceived
technology and online purchase intention. A total of 250 sets of questionnaire were distributed to the
full time undergraduate information technology students in a private university that is located in Kuala
Lumpur. The findings revealed that perceived technology and perceived risk were positively related to
the online trust; online trust was positively related to online purchase intention and perceived
technology was positively related to the online purchase intention. In addition, the finding also
concluded that perceived technology as positively related to online purchase intention, mediated by
online trust.11
RESEARCH METHODOLOGY
This research was a descriptive research trying to describe the factors affecting online purchasing
intention for durable goods in Vadodara. For the purpose of this research, a structured questionnaire
was prepared and data was collected from 200 respondents from the city of Vadodara in Gujarat,
India. Stratified random sampling was used to determine the respondents. Samples comprised service
class, businessmen and professionals in approximately equal proportion. The questionnaire was
divided into three parts. First part was about the demographic profile of the respondents. Second part
studied the online purchasing intention for durable goods and third part collected data about the
parameters of purchasing intention which were knowledge, beliefs, subjective norms, motivation and
attitude. The questions were based on a five point Likert scale. Table 1 shows the demographic
characteristics of the respondents.
Table 1 : Table Showing the Profile of Respondents in Vadodara
Factor
Age
20-30
31-40
41-50
51-60
above 60
Total
Gender
Male
Female
Total
11

N%

72
52
42
27
7
200

36.0
26.0
21.0
13.5
3.5
100

156
44
200

78.0
22.0
100.0

Income
< 1.00
12
1.01-2.00
33
2.01-3.00
48
3.01-4.00
30
4.01-5.00
38
above 5.00
39
Total
200
Marital Status
Married
147
Unmarried
53
Total
200

6.0
16.5
24.0
15.0
19.0
19.5
100

Occupation
Service
68
Business
64
Profession
68
Total
200

34
32
34
100

73.5
26.5
100

Kwek Choon Ling, et al., (2011), Perceived Risk, Perceived Technology, Online Trust for the Online Purchase Intention
in Malaysia, International Journal of Business and Management, Vol.6(6), page 167-182.

34% respondents were service class and professionals, while 32% respondents were businessmen.
The demographic characteristics of respondents are represented in the above Table No.1.
Hypothesis:
H1:

There is no significant purchasing intention to buy durable goods online

H2:

There is no significant knowledge about availability of durable goods online.

H3:

There is no significant belief about online purchasing intention for durable goods

H4:

There is no significant effect of subjective norms on online purchasing intention for


durable goods.

H5:

There is no significant effect of motivation for online purchasing intention towards


durable goods.

H6:

There is no significant effect of attitude for online purchasing intention towards durable
goods.

DATA ANALYSIS
H1 : There is no significant purchasing intention to buy durable goods online.
Table 1 : Table Showing Purchasing Preference for Various Durable Goods Online
Sr.
1
2
3
4
5
6
7
8
9
10
11

Product
Refrigerator
AC
Audio & Speaker
Mixers & Grinders
Microwave
Electric Fans
Cooking Range
Chimneys
Mobiles/Accessories
TVs
DVD/VCD/MP3

Mean
6.84
6.55
5.05
5.56
6.52
5.67
5.36
7.38
3.43
5.49
3.77

Std.
Deviation
4.01
3.91
3.15
3.35
3.22
3.69
3.54
3.37
3.55
3.99
3.40

In order to study purchasing intention, respondents were asked to rate the types of durable goods they
would like to purchase. Based on the responses obtained, it was observed that respondents had highest
purchasing preference for Mobiles and Accessories with a mean rank of 3.43 out of 11. After Mobiles
and Accessories, the second most preferred product for purchasing online was DVD/VCD/MP3
Players with a mean rank of 3.77 out of 11. However, products like Chimneys (Mean rank = 7.38),
Refrigerator (Mean rank = 6.84), Air Conditioners (Mean rank = 6.55) and Microwave Ovens (Mean
rank = 6.52) were not preferred to be shopped online. In order to further study purchasing intention of

respondents, their opinions were obtained which further strengthened their purchasing intention.
Following was observed in the research.
Table 2 : Table Showing Online Purchasing Intention in terms of Seeking Durable Goods for
Future Purchases
Response
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total

Frequency Percent
64
32.0
91
45.5
33
16.5
10
5.0
2
1.0
200
100.0

77.5% respondents gave a positive reply when asked whether they would seek durable goods online in
future. This means that people do search for durable products online before deciding about whether to
purchase them from physical stores or online.
Table 3 : Table Showing Online Purchasing Intention in terms of Planning to Buy Durable
Goods for Future Purchases
Response
strongly agree
agree
neutral
disagree
strongly disagree
Total

Frequency Percent
58
29.0
79
39.5
43
21.5
16
8.0
4
2.0
200
100.0

It was observed that 68.5% respondents actually were planning to buy durable goods online which
suggested that there is a positive purchasing intention to buy durable goods online in
Vadodara.
H2 : There is no significant knowledge about availability of durable goods online.
Respondents were asked to show their agreement to certain statements regarding their knowledge
about availability of durable goods on the internet in the form of a 5 point Likert scale. Based on the
data collected and analysed, following results were obtained which are presented in Table No.4.

Table 4 : Table Showing Knowledge of Respondents about Availability of Best Brand of Durable
Goods Online

Knowledge about selection of best brand


Categories of durable goods
Where to find durable goods

Mean s.d.
2.17
0.94
2.29
0.98
3.74
1.13

Chi
p-value
72.053
0.00
47.491
0.00
47.228
0.00

69.3% respondents had agreed to the fact that they had knowledge about how to select the best brand
of durable goods online. The data was found to be highly significant (Chi Square = 72.053, p = 0.00).
Similarly, 61.4% respondents said that they had knowledge about which categories of durable goods
could be bought online. This data was also highly significant (Chi Square = 47.491, p = 0.00).
Finally, respondents were asked whether they had knowledge about where to go to find durable goods
online. 68.4% respondents gave a positive reply to this. This result was also highly significant (Chi
Square = 47.228, p = 0.00).
Thus, it was observed that respondents in Vadodara had sufficient knowledge about purchasing
durable goods online. From the statistical results obtained, the hypothesis there is no significant
knowledge about durable goods online is rejected and alternate hypothesis that there is significant
knowledge about availability of durable goods online.
H3 : There is no significant belief about online purchasing intention for durable goods
Table 5: Table Showing Beliefs of Respondents in Vadodara about Purchasing Durable Goods
Online

Safe to buy well-known brand


Quality of after sales service
quality of durable goods
Expensive

Mean s.d.
1.98 1.037
3.54 1.227
3.52 1.280
3.65 1.240

Chi
p-value
127.05
0.00
68.15
0.00
66.80
0.00
63.70
0.00

It was observed that the belief about purchasing durable goods online was not positive in most cases.
78.5% Respondents believed that it is safe to buy a well-known brand online. This data was highly
significant (Chi Square = 127.05, p = 0.00). However, for other factors like quality of after sales
service, quality of durable goods available for purchase online and the price, the belief was found to be
negative. This can be suggested from the mean values obtained which were above 3.5 on a five point
likert scale with 1 as positive and 5 as negative. Further analysis of the data was conducted through
chi square test and it was found to be highly significant as is clear from the above Table No.5
Thus, from the raw data collected and its analysis, it can be said that in general, there is a negative
belief about purchasing durable goods online. Hence, the hypothesis that there is no significant belief
about purchasing durable goods online is rejected.

Table 6 : Table Showing Influence of Subjective Norms on Online Purchasing Intention for
Durable Goods

Influence of family on purchasing intention


Influence of friends/peers on purchasing intention
Influence of media on purchasing intention

Mean s.d.
Chi
p-value
2.58
1.21 45.55
0.00
2.37
1.07 74.60
0.00
2.49
1.11 70.90
0.00

56.5% respondents gave a favourable reply to the fact that family has an influence on purchasing
intention. The data was found to be significant (chi = 45.55, p=0.00). Respondents also felt that
friends and peers had an influence on their purchasing intention. 62% respondents agreed to this fact
in the research. The data was found to be significant which is clear from the above Table No.6 (Chi =
74.60, p=0.00). Finally, it was also observed that media had an influence on purchasing intention for
durable goods. 59% respondents agreed to have been influenced by advertisements. Hence, the
hypothesis is rejected and alternate hypothesis is accepted.
H5: There is no significant effect of motivation for online purchasing intention towards durable
goods.
Table 7 : Table Showing Influence of Motivation on Online Purchasing Intention for Durable
Goods

Willing to pay higher prices for quality goods


Search for durable goods via internet
Never motivated to buy durable goods online
Will to switch brands for online purchasing
Will not buy a brand if not recommended online

Mean s.d.
2.26
1.25
2.13
0.90
3.30
1.29
2.32
1.01
2.39
1.13

Chi
p-value
63.950
0.000
52.600
0.000
38.70
0.000
95.95
0.000
70.150
0.000

One of the important factor determining purchasing intention for online purchasing for durable goods
through the internet is motivation. From the data obtained in this research and the analysis in Table
No.7, it could be observed that there is motivation to purchase durable goods online. 67% of the
respondents agreed that they were willing to pay higher price for good quality durable goods available
online.

70.5% respondents said that they search for durable goods availability and other details

online. 50% respondents did not agree to the fact that they were never motivated to buy durable goods
online. This means that 50% respondents were motivated to buy durable goods through the internet.
64.5% respondents said that they were ready to switch to newer brands of durable goods if they are
recommended online and 63.5% said that they would not be willing to buy a brand if it is not
recommended online. All the data collected was found to be highly significant as can be seen in the
chi values in the above Table No.7.
Hence, based on the significance of the data and test conducted, the null hypothesis is rejected and
alternate hypothesis is accepted.

H6 : There is no significant effect of attitude for online purchasing intention towards durable
goods
Table 8 : Table Showing Influence of Attitude on Online Purchasing Intention for Durable
Goods

Internet is more trustworthy media


Online buying is more convenient
Online buying saves time
Online buying is economic
Trust the security of online payment like credit card

Mean s.d.
2.48
1.05
2.03
0.92
1.79
0.92
2.04
0.95
2.27
1.16

Chi
p-value
78.200
0.000
110.650
0.000
163.350
0.000
113.400
0.000
55.850
0.000

There is a strong belief in India that the attitude of consumers towards online purchasing is not
positive. This mode of purchasing is perceived to be less trustworthy. Not only that, the payment
mode through credit/debit cards is also perceived to be risky. In this research, it was observed that in
Vadodara, that is not the case. 58% respondents found internet to be a trustworthy media. 71% of the
total respondents felt that online buying is more convenient. 83% responded that over and above
being convenient, online buying is time saving also. 73% were of the opinion that online buying is
economic. The reason given for being economic was that it saved time and also travelling to and from
the market place. 62.5% respondents found that it was secure to use online payment modes through
credit card. This is a positive observation for Indian marketers who are looking at internet as a virtual
market place. Chi square test revealed that all the data was highly significant as shown in Table No.8.
Based on the data collected and test results, it can be said that the hypothesis is rejected and alternate
hypothesis is accepted.
CONCLUSION
Thus, it can be concluded that there is a good possibility in India to offer durable goods online. The
only hindrance is the lack of belief in terms of quality of after sales service, quality of goods offered
for sale and price. Hence, if awareness is brought about these factors and right experiences given, sale
of durable goods online can prosper in India.
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