Consumer Behavior and Preferences in Online Shopping in Bangladesh: A Case Study in Rangpur City.

Consumer Behavior and Preferences in Online Shopping in Bangladesh: A Case Study in Rangpur City.

Md. Shabuz Sarker^1* & Sharmin Layla Roon²

¹Lecturer, Department of Business Administration, Teesta University, Rangpur. Bangladesh.

²Trainee Assistant Officer, EXIM Bank, Karwanbazar, Dhaka, Bangladesh.

^*Corresponding Authors

DOI: https://dx.doi.org/10.47772/IJRISS.2024.803280S

Received: 20 August 2024; Accepted: 31 August 2024; Published: 26 September 2024

ABSTRACT

This study investigates customers’ internet buying habits and preferences in Rangpur City, Bangladesh. Understanding the characteristics of the local consumer is essential as e-commerce grows in Bangladesh. In Rangpur City, this study looks at the variables that affect consumers’ happiness, preferred items, systems, and internet buying behavior. The research offers insights into customers’ particular demands and preferences in this urban area by analyzing demographic information including age, gender, income, and education level.

Males and females had comparable opinions towards online purchasing, preferring home delivery and opposing weak return policies. Typically, people gather online shopping information through social media. Cash-on-delivery is a popular technique for acquiring goods and accessories. Consumers are concerned about payment system security and prefer not to use credit or debit cards for shopping. The findings provide insightful advice for marketers, legislators, and e-commerce businesses to improve the online shopping experience and promote sustainable development in Rangpur City’s e-commerce industry.

Keywords: Customer, Consumer Behavior, Consumer Preferences, Online Shopping, Rangpur, Bangladesh.

INTRODUCTION

Nowadays, Bangladesh is referred to as a “digital Bangladesh”. Online commerce and business are more popular. The digital environment has extended throughout the country, including Rangpur City. In recent years, online shopping has improved and more people have gained access to the internet. Advancements in Information and Communication Technology (ICT) allow for home-based maintenance chores like buying(Enam et al., 2024). Bangladesh has great potential in this field. The e-commerce business has recently seen significant changes. In the 1990s, e-commerce revolutionized the retail industry globally(Chen & Chang, 2003). The digital revolution has altered consumer purchasing habits. Consumers use the online marketplace not only to shop, but also to learn about products that may help them make future purchases(Mridha et al., 2023). The online marketplace gives customers simple access to information about a brand’s product quality, availability, specifications, and prices, as well as comparisons to other brands. The recent rise of the online market has demonstrated that online commerce is fast replacing traditional marketing retailing (Rezaei et al., 2014).by allowing more time savings, internet retail enterprises make shopping for clients significantly more comfortable (Szymanski & Hise, 2000). E-commerce has also increased geographic reach because consumers can buy goods and services at any time and from any location.As a result, internet shopping is more ecologically friendly than in-store purchases because consumers can simply fulfill their needs with a click of a mouse without leaving the house or using any transportation (M. T. Rahman, n.d.). There is a good likelihood that online commerce will grow in the near future due to the rapid spread of internet access in Bangladesh’s rural areas. On the other side, our people are generally cautious when it comes to purchasing; yet, as a result of technology innovation and a faster lifestyle, their reliance on internet shopping will increase (Ahmed et al., 2022).

Because of the current circumstances, an increasing number of academics are interested in studying consumer behavior to better understand the characteristics of online purchase. As a result, our research is centered on understanding consumer attitudes toward online purchase, as well as their preferences, dislikes, and levels of satisfaction. Nowadays, people’s engagement and review ratings influence consumers’ opinions toward online purchasing & preferences therefore researchers include them as a component in this study and identify a gap from past studies.

LITERATURE REVIEW

E-commerce can help reduce administrative expenses and cycle time, streamline corporate procedures, and improve interactions with both business partners and customers.

Several academics have studied the aspects that influence consumers’ attitudes and perceptions about internet shopping. Shopping has traditionally been a female-dominated pastime. Women are frequently in charge of household buying, and they have a more positive view toward traditional retail and catalog shopping than males (Rahaman, 2014). Consumer attitudes toward online buying refer to their favorable or negative views about making purchases on the internet (Chiu et al., 2005). According to the aforementioned literature assessment, there are very few researches from Asian nations on the growth of online shopping and its relationship with physical shopping frequency. A recent study conducted in Bangladesh highlights that educated male and married consumers are more likely to shop online (Hossain et al., 2022). Online shopping can replace or supplement physical shopping. Online purchasing can alter the characteristics of physical shopping or have no effect on physical shopping(Enam et al., 2024). A long-term appraisal of a product or service consumer attitude is made up of beliefs, feelings, and behavioral intentions toward an item, which in the context of marketing is commonly a brand or retail store (Solomon, 2009).

Researchers used two main methodologies to investigate the impact of online buying on physical shopping participation. Some study specifically questioned respondents how their physical buying habits had altered as a result of their internet purchasing experiences. In contrast, other researchers have investigated the correlation between online buying/searching frequency and physical shopping frequency to determine the latter’s influence on the former. This paper aims to fill a research vacuum by exploring customers’ attitudes regarding internet purchasing in Bangladesh, a topic that has received little attention in the literature. Thus, based on the research reviewed above, the purpose of this paper is to discover the factors impacting online shopping preferences, likings, and dislikes among both male and female respondents in Bangladesh. Because of the current circumstances, an increasing number of academics are interested in studying consumer behavior to better understand the characteristics of online purchase. As a result, our research is centered on understanding consumer attitudes toward online purchase, as well as their preferences, dislikes, and levels of satisfaction.

METHODOLOGY OF THE STUDY

Research methodology is mostly centered on quantitative methods, with survey studies considered a research technique. We created a study using an online survey, creating a self-constructed questionnaire with the research goal of understanding customer behavior & preferences when purchasing online in Rangpur city. The preceding questions were asked to meet the study’s goal of identifying customers’ online purchase behavior and perceptions about online shopping in Rangpur city.

a. Where do you get your information on online shopping?

b. What are the reasons you choose to shop online?

c. What are the reasons for loving internet shopping?

d. What are the reasons for disliking online shopping?

e. Which payment method do consumers favor the most?

f. What is the satisfaction level with online shopping?

In this study, data was obtained from Bangladeshi respondents via an online survey utilizing a handy non-probability sampling method. It is one of the most common methods of data collection. Because of the availability of effective and easily accessible online survey technologies, online surveys will become the most common way for academics to conduct studies and collect data in the future. A simple and cost-effective sampling approach is increasingly prevalent in IS analysis since it yields a higher response rate (Lefkowitz, 1975).

Research Design

In this survey, we collected information regarding internet purchasing directly from individual customer in Rangpur city. Responses are using an online survey and used it as our major source of data. Primary data were acquired by surveys issued to residents of Rangpur City. To get a speedy response from responders, a Google form was constructed and distributed online through various channels such as email, website embedding, social media, and so on. Secondary data on customer behavior in e-commerce in Bangladesh was acquired from a variety of books, journals, websites, periodicals and research articles.

Target Population and Sample Size

For an online survey, the sample size is 180 respondents of various ages, including students, employees, business owners, and homemakers with differing levels of internet purchasing experience, and 165 responded, yielding a 92% response rate.

Procedure for Data Investigation

After sifting through the 165 responses, 150 useful and legitimate ones were selected for further examination. Microsoft Excel was used to evaluate the accumulated data.

Individual client data was reviewed and evaluated using typical computer tools and depicted as a bar diagram (M. A. Rahman et al., 2018).

RESULTS AND DISCUSSION

Eleven factors were chosen to assess and depict survey data using a bar diagram.

Gender:

Figure-01: The respondent’s gender.

There were 64.67% men and 35.33% women among the responders.

Age:

Figure-02: Respondents’ age group

The vast majority of respondents were under the age of 35. 12.67% of respondents were under the age of 19, 37.33% were between the ages of 20 and 24, 23.33% were between the ages of 25 and 29, 18% were between the ages of 30 and 34, and 8.67% were 35 and up.

Occupation:

Figure-03: The respondent’s occupation

According to study, students are more engaged in internet buying than any other profession. Approximately 40.67% of all responders were students. 14% were homemakers, 34.67% were service providers, and 10.67% were in business.

Income range:

Figure-04: The respondent’s income range

Almost 50.67% earn between Tk. 0 and Tk. 15,000 per month; 22.67% earn between Tk. 15,001 and 30,000 per month; 15.33% earn between Tk. 30,001-45,000 per month; and 11.33% earn more than Tk. 45,000 per month.

Sources of Knowledge on Online Buying

Figure-5: Details of the sources of knowledge on online buying

To advertise and sell products online, it is necessary to educate individuals about the benefits, limits, and website addresses associated with online purchases. 52% of respondents polled use social media platforms like Facebook, Twitter, Linkedin, and Instagram to learn about online shopping, while 16.67% get information from friends and family.

Reasons to Shop Online

Figure: 06: Details of the Reasons to Shop Online

Online shopping is preferred by 54.67% of male and female participants because it saves time, while 27.33% prefer it because of the range of products offered. Approximately 10% of respondents prefer internet shopping because it is easier to compare products, while 8% prefer it because the product is genuine.

Choices for Goods/Services

Figure-07: Details of the choices for goods/services

When asked which of the specific items and services they desired, 51.33% chose clothing and 24.67% preferred accessories. Electronic devices are preferred by 15.33% of those polled, with books chosen by 8.67%.

Reasons to Enjoy Online Shopping

Figure-08: Details about the reasons to appreciate internet purchasing

Both male and female participants appreciate the ease and accessibility of online buying. They prefer the option of home delivery. Because of the obvious benefits of home delivery, 40.67% favored online shopping, while around 12.67% stated it was easier to acquire what they wanted online. 20% of respondents welcome discount offers when shopping online, while 25.33% prefer available purchase alternatives and payment channels.

Reasons for Disliking Online Shopping

Figure-09: Reasons to dislike online shopping

The most prevalent criticism about online shopping is the absence of a proper return policy. Table 9 shows that 36% of respondents dislike online shopping because of the poor return policy, and around 28% dislike it because of the high cost of products or services. 20% of respondents reject internet shopping’s after-sales services, while 16% dislike the inability to touch, feel, or try products out.

Payment Method

Figure-10: Payment Method for Online Shopping

A consumer’s payment method is an important factor when purchasing an online product. When it comes to internet purchases, most buyers prefer cash-on-delivery. According to the case study, 81.33% of respondents prefer to pay cash on delivery, while 11.33% prefer to pay via mobile banking. 5.33% of respondents pay with credit cards, while 2% use debit cards.

Satisfaction level of Online Shopping

Figure-11: Details on consumer satisfaction with online purchasing

Customer happiness is essential in online shopping. Customers who are satisfied are more likely to shop online again. After analyzing the data, half of the participants reported being satisfied with their overall online purchase experience. Only a small percentage of online buyers are really satisfied with the services, demonstrating that there are existing challenges preventing consumers from purchasing online on a regular basis. Companies must take steps to convert unhappy and indifferent internet purchasers into satisfied or completely satisfied customers. Regular online shoppers are satisfied in 52% of cases, whereas 14% are dissatisfied. They are indifferent in 27.33% of cases, and just 8% of all frequent internet users are extremely satisfied, compared to 1.33% who is very dissatisfied.

RECOMMENDATIONS

1. Improve Product legitimacy: Stricter quality control procedures can help consumers trust the legitimacy of products.
2. Build Trust in Digital Payments: Using awareness campaigns to promote the security and convenience of digital payment systems can help improve acceptance.
3. Tailor your marketing strategies: E-commerce enterprises should adjust their marketing efforts to reach the younger, more educated demographic that makes up the majority of online customers in Rangpur.
4. Expand Product Offerings: Constantly extending the number of things accessible online helps attract new customers while retaining existing ones.
5. Logistics and Delivery: Assess the role of logistics and delivery services in determining consumer satisfaction with online buying experiences.

CONCLUSION

This survey provides useful insights into Rangpur City consumers’ internet shopping habits and preferences. The data show a substantial preference for e-commerce, driven by convenience and product diversity. However, trust difficulties with online payments persist, indicating the need for increased security and customer education. This information can help firms and regulators modify their strategy to better serve Bangladesh’s rising online consumer base.

SOURCE OF FINANCIAL SUPPORT

The researchers did not accept financial support for this research.

CONFLICT OF INTEREST

The author said that there is no conflict of interest and that no monies were collected from any organizations or institutes generating the essay. This article aims to share and acquire knowledge.

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