Drivers and Barriers to Online Shopping in a Newly Digitalized Society

Despite the massive penetration of internet in the developed and the developing world, e-commerce is still struggling in most of the developing and emerging economies. In this context, this study investigates why the customers, in developing countries, do not prefer online shopping for apparel despite the several benefits such as convenience, control, variety and enjoyment being offered by this mode of shopping. Moreover, the study assesses the boundary conditions under which consumers' perceived risk diminishes online shopping benefits. With data from prospective online customers in an emerging economy, the proposed concept is tested using SmartPLS 3.0 based SEM approach. The results indicate a significant positive effect of online shopping benefits on consumers' purchase intention for online shopping. In addition, the relationship between online shopping benefits and purchase intention is contingent on the consumers' level of perceived risk in the digital environment. The paper concludes with a discussion on the managerial and the theoretical implications.