Factors Influencing Purchase Decisions of Online Shopping among Young Customers in Nepal

Abstract

The purpose of this study is to investigate the effect of young consumers' Online buying decisions in Nepal. Customers can save a great deal of time by shopping online and purchasing goods and services with only a few clicks from their web browser rather than having to go to a physical store. For this research, six independent variables were used such as firm reputation, price, product quality, payment option, and product delivery and return and refund policies. The dependent variable considered for this study was purchase decisions. With the use of descriptive research design, as well as convenience and purposive sampling were used for the study.  Primary data was used from 350 questionnaires distributed and 322 acquired.  The data are collected through the Five-Point Likert scale. Collected data were analyzed and interpreted using descriptive, correlation, and regression analysis. The result found that the majority of the respondents are aged between (26-30) years 41.6% All the independent variables used in this study perfectly correlate with the dependent variable. The result represents price has little bearing on consumers' decisions to buy products when they shop online. Similarly, young Nepali consumers' decisions to make online purchases are not significantly influenced by a company's reputation. However, this study discovered that one of the most important factors influencing online shoppers' decisions to buy is product quality. Young Nepalese consumers' purchasing decisions are also greatly influenced by the payment method and return and refund procedures. However, the findings indicated that among young consumers in Nepal, product delivery does not significantly influence their purchasing decisions. The findings from this study provide useful insights for online business for strategy formulation of businessmen, relevant stakeholders, and policymakers to support the growth of online shopping in Nepal.

Keywords: Online Shopping, Purchase Decisions, Product Delivery, Product Quality, Return and Refund Policies, Reputation.