FACTORS AFFECTING ONLINE SHOPING BEHAVIOUR OF

BOUTIQUE PRODUCTS IN KATHMANDU VALLEY

A Thesis

By:
Sushmita Satyal
Shanker Dev Campus
Campus Roll No.: 2162/066
T.U. Regd. No.: 7-2-39-397-2006
Exam Symbol No.: 390195/068

Submitted to:
Office of the Dean
Faculty of Management
Tribhuvan University

In Partial Fulfillment of the Requirement for the Degree of

Master of Business Studies (MBS)

Kathmandu, Nepal
June, 2024
 RECOMMENDATION
This is to certify that the thesis

Submitted by:
Sushmita Satyal

Entitled:

FACTORS AFFECTING ONLINE SHOPING BEHAVIOUR OF

BOUTIQUE PRODUCTS IN KATHMANDU VALLEY
has been prepared as approved by this Department in the prescribed
format of the Faculty of Management. This thesis is forwarded for
examination.

……..……..……..………....… ...........…………..……….…. ………………….………..…..………

Dr. Binita Manandhar Asso. Prof. Dr. Sajeeb Kumar Shrestha Asso. Prof. Dr. Krishn Prasad Acharya
(Thesis Supervisor) (Head, Research Department) (Campus Chief)

i
 VIVA-VOCE SHEET

We have conducted the viva –voce of the thesis presented

By:
Sushmita Satyal

Entitled:
FACTORS AFFECTING ONLINE SHOPING BEHAVIOUR OF
BOUTIQUE PRODUCTS IN KATHMANDU VALLEY

And found the thesis to be the original work of the student and written
according to the prescribed format. We recommend the thesis to be
accepted as partial fulfillment of the requirement for the degree of
Master of Business Studies (MBS)
Viva-Voce Committee

Head, Research Department …………………….………

Member (Thesis Supervisor) …………………….………

Member (External Expert) …………………….………

ii
 DECLARATION

I hereby declare that the work reported in this thesis entitled " Factor Affecting
Online Shopping Behavior of Boutique Products in Kathmandu Valley "
submitted to Office of the Dean, Faculty of Management, Tribhuvan University is my
original work conducted in the form of partial fulfillment of the requirement for the
degree of Master of Business Studies (M.B.S) under the supervision of respected
supervisors Dr. Binita Manandhar of Shanker Dev Campus, T.U.

………………………..
Sushmita Satyal
Shanker Dev Campus
Campus Roll No: 2162/066
T.U. Reg. No: 7-2-39-397-2006

iii
 ACKNOWLEDGMENTS

The dissertation entitled "Factor Affecting Online Shopping Behavior of Boutique

Products in Kathmandu Valley" has been prepared to fulfill the partial
requirements for the master degree (M.B.S.) course of Tribhuvan University. I would
like to express my gratitude towards each and every individual who have supportive
helping hands for the completion of the dissertation work. Without whom, it is not
possible anyways, I would like to thank following persons for their continues support
and providing intellectual comments.

First of all, I am heartily, indebted and thanks to my dissertation supervisor Dr. Binita
Manandhar of Shanker Dev Campus whose inspiration and constant valuable
guidance, proper supervision and encouragement towards achieving the goal of this
dissertation and providing the useful materials. Her encouragement and suggestion
guidance for this work is incredible, without which it would not be success.

Similarly, I also would like to express my sincere gratitude to Chairman of research

committee Asso. Prof. Sajeeb Kumar Shrestha, Ph.D., Management Department head
and campus chief of Shanker Dev Campus Asso. Prof. Krishna Prasad Acharya Ph.D.
for the support during preparation.

I also owe deep gratitude to all reputed authors whose writings have provided me the
necessary guidance and invaluable materials for the enrichment of my research papers
in all possible ways. My special appreciation goes to my colleague and to all my
family members, teachers and friends for their continuous encouragement and help to
complete this work directly or indirectly.

Thank you.

Sushmita Satyal

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 TABLE OF CONTENTS

CONTENTS PAGE NO
Cover page i
Recommendation ii
Vice-Voce sheet iii
Declaration iv
Acknowledgements v
Table of contents vi
List of tables' viii
List of figure ix
Abbreviations x
Abstracts xi
CHAPTER –I: INTRODUCTION 1
1.1 Background of the study 1
1.2 Problems statement 2
1.3 Objectives of the study 3
1.4 Hypothesis of the study 3
1.5 Rationale of the study 4
1.6 Limitations of the study 4
CHAPTER-II: LITERATURE REVIEW 5
2.1 Conceptual review 5
2.1.1 Concept of online shopping behavior 5
2.1.2 Factors influence online consumer's behavior 6
2.2 Review of empirical studies 7
2.3 Research gap 10
CHAPTER-III: RESEARCH METHODOLOGY 12
3.1 Research design 12
3.2 Population and sample 12
3.3 Source of data 13
3.4 Data collection procedures 13
3.5 Data analytical 14

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 3.5.1 Descriptive analysis 14
3.5.2 Hypothesis Testing 14
3.5.3 Statistical tools use to analysis 15
3.6 Research framework 15
3.6.1 Definition of variables 16
CHAPTER-IV: RESULTS AND DISCUSSION 18
4.1 Opinion on priority for most important factor influencing
online shopping behavior 18
4.1.1 Survey on price 18
4.1.2 Survey on perceived risk 19
4.1.3 Survey on consumer attitude 21
4.1.4 Survey on online shopping behavior 22
4.2 Descriptive analysis 22
4.3 Inferential analysis 23
4.3.1 Correlations analysis 23
4.3.2 Regression analysis 25
4.4 Hypothesis testing 27
4.5 Finding of study 28
CHAPTER-V: SUMMARY AND CONCLUSIONS 30
5.1 Summary 30
5.2 Conclusion 30
5.3 Recommendation 31

BIBLIOGRAPHY
ANNEX

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 LIST OF TABLES

TABLE NO. TITLE PAGE NO.

4.1 Structure of price of sample banks 19
4.2 Structure of perceived risk of sample banks 20
4.3 Structure of consumer attitude of sample banks 21
4.4 Structure of online shopping behavior of sample banks 22
4.5 Descriptive statistics of variable of banks 23
4.6 Correlation matrix of variables of banks 24
4.7 Structure of model summary 25
4.8 Structure of ANOVA table 26
4.9 Structure of coefficient table 26

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 LIST OF FIGURES
FIGURE NO. TITLE PAGE NO.
3.1 Research framework 17

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 ABBREVIATIONS

% : Percentage
& : And
ANOVA : Analysis of Variance
ATT : Attitude Toward Online Shopping
CA : Customer Attitude
DF : Degree of Freedom
F/Y : Fiscal Year
i.e. : That is
OSB : Online shopping Behavior
P : Price
PR : Perceived Risk
SA : Strongly Agree
SD : Strongly Disagree
Sig. : Significant
SPSS : Statistical Package for Social Science
TU : Tribhuvan University

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x
 CHAPTER-I
INTRODUCTION

1.1 Background of study

Today, individuals are living in the digital environment. Two decades ago, internet
was used to share information only but now life has become practically impossible
without it. Business, social contact or commerce virtually everything is related with
internet. The changed lifestyle of individuals has changed their method of doing
things from traditional to the digital way in which buying is also being switched to
online shopping (Kanupriya and kaur, 2016). According to Almahroos (2012)
shopping via the Internet does not only offer ease and bring other benefits to
consumers, but also gives tremendous advantages to corporate enterprises. It
minimizes sales and marketing cost, overall operating cost and in turn boosts
efficiency and maximizes profit margin. The online purchase is getting tremendous
popularity day by day.

Online shopping gives a variety of things including everyday essentials, groceries,

electrical goods, and clothing, as well as stylish apparel. Boutiques, in particular, offer
attractive clothing and accessories, along with a distinct assortment of other products
(Prasad, 2014).

In Kathmandu, there are several businesses where individuals buy and embroider
garments of their choice. Most urban clients flock to boutique for their buy as it
carries up a selection of things. So the market is concentrated to the fashion conscious
segment (Cuneyt and Gautam, 2010).

The shifting fashion tastes of Nepali customers have improved the boutique sector.
Many people now do their domestic responsibilities online. The internet and online
shopping help manage boutique shopping and work balance. Increased technological
utilization significantly enhances these sectors.

In today's setting of boutique business is one of the most successful enterprises on

online. In 2019, simply in Kathmandu Valley alone 44% of 25 – 34-year olds shopped
online for clothes (Tamrakar, 2020). Lower pricing and overall ease encourages
consumer to internet purchasing. The largest obstacle that keep customers from
shopping online are trust difficulties, connected to consumers credit card information,

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fraud or return procedures. These are some of the most urgent concerns that are now
keeping most of the consumers from shopping online in big metropolis such as
Kathmandu (Tamrakar, 2020).

Online shopping in boutique business is playing a rising part in the total relationship
between markets and their consumer (Koo et al., 2008). There are number of
researches which were undertaken to figure out the aspects affecting online
purchasing behavior of consumers. But, there are still unexplained elements need to
be further explored about online shopping behavior on boutique industry. There are
very less study on the particular place in context of Kathmandu valley. Therefore, the
goal of this study is to analyze the factors affecting online shopping habits on small
boutique products in Kathmandu. This will be done by researching past models on,
how previous online producers have gone online who own boutique firms to discover
the most crucial elements impacting small clothes shop owners.

1.2 Statement of Problem

In our civilization, tailors have traditionally addressed our clothing needs. With
changing influences and western society, we are increasingly more driven to boutique,
a new industry. The internet has tremendously revolutionized business and influenced
customers buying behaviour,especially for boutique merchandise.

Because of rising Nepalese income, changing fashion trends, globalization, and the
desire for attractive apparel, boutique company confronting many obstacles and
having opportunities. Nepalese consumers are increasingly investing their money on
boutique products that are excellent in quality and unique. Traditionally, boutique
clothing was solely linked with female clients, but men are rapidly growing interested
in boutique fashion as well (Shakya, 2011).

The rise of online shopping is transforming the face of Nepal's boutique industry.
These days many designers contact with their clients via their websites or social
media accounts such as Facebook, WhatsApp, Viber, and Instagram. The rise of
online business has also made the industry more competitive (Kharel, 2018; Vaidya,
2019). However, there are numerous of issues experienced by boutiques in Nepal.

2
Despite the expansion of the domestic boutique business, proprietors confront
obstacles such as low-cost items being mislabeled as designer clothes. The surge in
internet users and online shopping, with consumers choosing various e-commerce
platforms, has forced boutique owners to improve their product quality and designs.
Nepalese consumers are flocking to internet shopping due to hectic schedules, time
constraints, and the unavailability of desired brands in local shops (Kim et al., 2007).

As our society is evolving and is influenced by internet the way the commerce use to
be has been modified along with the behavior on online purchasing. In internet
platform there are lots of issues experienced by boutique. The biggest difficulty
encountered by boutique business is customer online buying behavior. This study
seeks to show how online purchasing behavior influences boutique business. This
research intends to develop the effects of numerous main aspects which are
recognized by past studies on online purchasing behavior. The research questions are
so stated as followed.

 What are the elements affecting online customer buying behaviour?

 What is the influence of anticipated benefits on customer purchase behaviour
towards online shopping?
 Is there any discrepancy between users experience on the ground and what
Kathmandu's boutique owners perceive?

1.3 Objectives of the study

 To analyse the factors affecting online consumer behaviour.
 To analyse the effect of perceived benefits on customer purchase behaviour
towards online shopping.
 To explore the difference between customers experience on the ground and
Kathmandu's boutique owners perceive?

1.4 Hypothesis of the study

With the above literature review, we have formulated the following hypothesis:
H1: Price offered on online shop has a favorable association with consumers' online
buying behaviors.

H2: Perceived risk of online shopping is negatively connected with online purchase
behavior of customers.

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H3: Costumer's attitude has a favorably association with online buying behavior of
consumers.

1.5 Rational of the study

It can be said that marketing is the managerial process by which items are matched
with the market. With the assistance of marketing operations, a-producer can
disseminate his products "effectively and efficiently while the consumers may acquire
their want-satisfying products at a reasonable price. In this way both the producer and
consumer can maximize their benefits. The marketing system incorporates,
commercial and noncommercial as well as pre-purchase and post-purchase activities,
which are in anyway associated with the movement of commodities from the producer
to ultimate customers. Marketing obviously encompasses such operations as the
movement of commodities, pricing, warehousing, and advertising and so on
(Nikhashemi et al. (2013).

Online shopping is a key component of business and marketing nowadays, inspired by

modern marketing principles. Marketing managers increasingly make judgments
across numerous facets of selling goods and services online. Their mission is to match
the demands of online shoppers by supplying the correct product, at the right price,
delivered promptly, in the appropriate amount, and to the right location.

Boutique firms are doing well, especially in regions like the Kathmandu Valley,
because they understand how consumers behave online. This insight helps them earn
more money and acquire a larger market share.

1.6 Limitations of the study

The research was conducted under certain constraints. The limitations of the research
are as follows:

 The research is focused on internet shopping behaviour and boutique products.

 The Kathmandu valley is picked for the study.
 This study is based on primary data.

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 CHAPTER-II
LITERATURE REVIEW

2.1 Conceptual Review

In the Nepalese market, boutique production and marketing is a relatively new
phenomena. There is hence a dearth of information and writing on this boutique
product. For this thesis, the existing literature has been studied and consulted up until
that point. There haven't been many studies conducted in this area. This might be one
of the few theses on the issue and future of boutiques.

2.1.1 Concepts of online shopping Behavior

Consumers are defined as individuals who exercise their right to desire and use goods
that are sold in the market. He or she might require things that aren't on the market
yet, and they won't be content until the business acknowledges this and provides the
necessary goods. Additionally, he or she might buy goods to suit their family' needs
as well as their own (Chaturongakul, 2000). Additionally, the American Marketing
Association defines purchasing behavior as the transaction behavior that takes place
in daily life and reflects the ever-changing environment, human knowledge, conduct,
and expression. Put differently, consumer behavior pertains to the act of making
purchases and the exchange process that involves obtaining, using, and discarding
goods, services, experiences, and concepts. Individual and group purchases will be
covered by the purchasing unit (Taechasawad, 2006).

The process through which customers choose which things to buy in an online store is
known as online consumer behavior. Consumer activities and decision-making
processes related to online purchases of goods and services are referred to as online
buying behavior. Numerous elements, such as ease, user experience, pricing policies,
and merchant initiatives to engage customers, have an impact on this behavior.

A few definitions exist about the conduct of internet shoppers. According to

Schiffman and Kanuk (2007), online shopping behavior is the actions that consumers
take to find, use, assess, and discard goods and services that they believe will meet
their needs. The focus of online buying behavior is on how people choose to allocate
their available resources—time, money, and effort—to consumable goods. The study
of online buying behavior examines what consumers purchase and how they purchase

5
it. This covers the following: where they purchase it, when they buy it, how
frequently they use it, how they assess it after buying it and the implications of that
assessment for the future, and how they dispose of it.

2.1.2 Factors influence online consumer's behavior

According to Kumar and Dange (2014), there are two aspects of perceived risk
associated with online shopping: ambiguity and the importance of the possible
outcomes of a given purchase. Uncertainty is associated with the potential
repercussions of either positive or negative activity as well as the unintended effects
of these actions. A potential financial loss during an online purchase of a certain
product is also associated with uncertainty (Kumar and Dange, 2014). Online
financial transactions are associated with a number of risk concerns (Adnan, 2014).
Additionally, Adnan (2014) noted that before sending money to an online retailer,
clients consider various risk considerations. These elements could include loss of
privacy, security, and money. According to Naiyi (2004), consumers' online shopping
behavior has been negatively impacted by various dimensions of perceived risk,
including e-retailer source risk, purchasing process & time loss risk, delivery risk,
financial risk, product performance risk, asymmetric information risk, and privacy
risk regarding online shopping intentions.

As previously noted, the three online criteria were selected through a review of
pertinent literature regarding the behavior of consumers when they shop online. The
section that follows provides more details on these variables.

a) Prices
When searching for a necessary goods, consumers will initially consider price.
According to Acebron and Dopico (2000), price is an objective external feature of a
product that has the potential to stimulate consumers. Price is the most significant
factor influencing a consumer's decision to buy, according to some consumers. While
some customers prioritize brand and quality, others may search for things at a
reasonable price.

b) Perceived Risk
Prior studies have demonstrated a connection between the decision to make a
purchase through a new channel and the perceived risk of that channel. Although
customers consider risk when making most purchases, decisions made outside of

6
stores typically carry a higher perceived risk (Thompson et al. 2005). Before making a
purchase, a consumer will assess any potential hazards. When considering a specific
purchasing decision, a consumer's perception of the type and degree of risk is known
as perceived risk (Javadi et al., 2012).

c) Consumer Attitude
c) Customer Attitude Each customer has unique qualities that are difficult for sellers
to see. A conduct's attitude might be interpreted as a favorable or unfavorable
evaluation of engaging in that behavior. Based on their assessment and emotional
responses, consumer attitudes will influence their intention to buy a product (Javadi et
al., 2012).

2.2 Review of empirical studies

"Consumers' attitude towards online shopping: factors influencing Nepali consumers

to shop online" was the topic of Gaudel's (2022) investigation. This study set out to
examine Nepalese consumers' perceptions about online buying. The data in this study
were analyzed using the Chi-square test and Cronbach's alpha. The study's conclusion
showed that convenience, followed by security, time savings, and website design, is
the most alluring and significant consideration for online consumers in the
Kathmandu Valley among the four characteristics chosen for this research. According
to the study's findings, businesses in Nepal should understand how customers shop
online and ensure that it's simple and safe for them to do so. Additionally, researchers
should continue to explore ways to ensure the security of online transactions.

The goal of Ahmed and Ahmed's study from 2021, "Consumer behavior towards
clothing apparel of designer bands: a study on the boutiques and fashion house in
Bangladesh," was to identify the primary variables influencing Bangladeshi
consumers' purchasing decisions regarding clothing apparel. The data was analyzed
using multiple regressions, factor analysis, and the chi-square test. The results
demonstrated that consumers like high-end brands when the items are distinctive,
well-made, suit their particular tastes, of high quality, and come with excellent
customer service. Conversely, they dislike internet shopping, being overly price-
focused, or feeling that there is a risk involved. The study's conclusion is that
Bangladesh's fashion companies should focus on researching a wider range of product

7
categories and promoting traditional Bangladeshi goods made by ethnic craftsmen in
order to adapt to shifting consumer preferences.

Sah (2021) conducted research on "the factors affecting boutique product online
shopping behavior in the Kathmandu valley." The study aimed to investigate the
factors that influence online purchasing behavior and to determine the relationship
between pricing, trust, company reputation, convenience of use, and online shopping
behavior. The data were analyzed using multiple regression analysis and Pearson's
correlation coefficient. According to the study's findings, pricing, trust, company
reputation, and simplicity of use are all positively and significantly correlated. The
study found that the factors that influence online boutique product shopping behavior
include price, trust, company reputation, and simplicity of use. Consumer behavior
varies depending on the boutique's reputation, the range of products offered, the cost,
the website's ease of use, and trust.

The goal of Pandey and Parmar's (2020) study, "The Factor Affecting Consumer's
Online Shopping Buying Behavior," was to look at the variables that influence
consumers' online purchasing habits. The data was analyzed using the chi-square test
and Cronbach's alpha value. The study's conclusions demonstrated that seven
factors—perceived usability, perceived risk, perceived utility, impact of website
design, economic factor, product availability, and customer satisfaction—have the
most influence on customers' online buying behavior.

The goal of Indriani's (2019) research was to determine the elements that impact
consumers' decisions to purchase clothing online for Manado residents. The study was
titled "Analysis the Factors Influence Consumer Buying Decision on Online Shopping
Clothing for Consumer in Manado." The data analysis used in the study included
factor analysis, Cronbach's alpha value, and MSA. The study's conclusions
demonstrated that while all 20 criteria had an impact on consumers' purchasing
decisions, the three most important ones—available products, refunds, and perceived
ease of use—helped consumers decide to shop online. According to the study's
findings, online retailers could offer pre-order services to meet customer demands in
the event that a product is out of stock, improve their refund policies to give
customers peace of mind, and update their websites with new features that will aid
customers in making online purchases.

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Rungsrisawati & Co. In 2019, al. carried out a study titled "Factors Determining
Consumer Buying Behavior in Online Shopping." The primary goal of the study was
to identify the elements that motivate and impact customers' online purchasing
behavior. Multiple regressions and coefficient correlation were employed in the study
to analyze the data. The study's conclusions demonstrated that a number of important
elements influence consumers' online purchasing decisions. Perceived benefits
supplied by e-commerce websites and psychological aspects like truth influence
online purchase behavior. The regression model revealed a positive connection,
indicating that online purchasing behavior will increase as these parameters rise.
Businesses will increasingly rely on technology and digitization, thus it's critical to
investigate the variables influencing consumers' online purchasing decisions. This
suggests that a number of important aspects influence consumers' online purchasing
decisions. Perceived benefits supplied by e-commerce websites and psychological
aspects like truth influence online purchase behavior. Additionally, research has
shown that, when compared to other elements, psychological and perceived value
aspects have the greatest influence.

Chetioui and others. Al. (2018) carried out research on the elements influencing
Manado consumers' decisions to purchase clothing online. The goal of this study was
to determine the variables that affect Manado consumers' decisions to purchase
apparel online. To perform the study, a partial approach of validity and reliability
testing was employed. The results showed that all elements were qualified, and that
the three most important factors out of twenty based on the communality test were
perceived ease of use, refund, and available products. Customers choose to shop
online because it was effortless, as evidenced by the first-most important aspect being
the availability of products, the second-most important element being refunds, and the
third-most important one being perceived ease of use. In the event that a product is
out of stock, an online retailer should offer a pre-order service with a short production
time.

Alsmadi (2018) looked at the potential variables influencing Irbid consumers'

opinions on internet purchasing. The study's goal was to examine the various
variables that often influence consumers' online buying habits. Three factors—attitude
toward the behavior, subjective norm, and perceived behavior control—were
examined based on independent variables. Multiple regression analysis, One-way

9
ANOVA, and independent sample t-test were employed for data analysis. According
to the study, they employed their computer and Internet-related knowledge and
abilities with a good perception of how businesses' websites are currently promoted
and presented online. However, it appears that one of the main obstacles preventing
people from using online shopping more effectively is the concern over transaction
security. With the exception of money, analysis of variance reveals no discernible
variations in consumer sentiments based on demographic factors.

A study on consumers' attitudes on online buying and the variables that motivate them
to do so was carried out by Dani (2017). The purpose of the study was to examine
how various aspects of perceived risk, perceived benefits, psychological variables,
hedonistic incentives, and website design affected consumers' propensity to shop
online. The data was analyzed using chi-square and a one-way ANOVA test. The
study's conclusions showed that, out of the perceived risk, perceived benefits,
psychological variables, hedonic motivations, and website design that were chosen for
analysis, website design/feature was the most alluring and influential factor for online
shoppers. Convenience came in second place, and time savings came in third. The
findings also indicated that Indian internet shoppers are quite concerned about
security. The study also discovered that a few other criteria, such as lower prices,
discounts, customer reviews, and product quality, have an impact on online shoppers.

Shahzad (2015) looked at the mediating role of trust in determining consumer

sentiments regarding online buying behavior. This study set out to determine the
external online variables that, in the context of Sweden, affect consumers' attitudes
regarding online buying. Five online aspects were included in this study as
independent variables: website design was used for data analysis, trust and security,
delivery risk, financial risk, and product performance risk. The association between
the variables was measured using multiple regression and descriptive analysis. The
study's conclusions demonstrated that the most important and influential component is
website design. The remaining categories, financial risk and delivery risk, have no
discernible effect on consumers' online shopping behavior, whereas product
performance risk, trust, and security have a major impact.

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2.3 Research Gap
The goals, methods of analysis, and timeframes for gathering data all differ between
this study and others. This distinction emphasizes the necessity to investigate the
variables influencing the preferences for boutique products and the habits of online
shoppers in the Kathmandu Valley. Although prior research offers a basis, no
particular studies have concentrated on the selection of boutique products made
during internet purchasing. This study examines customer behavior in this particular
scenario in an attempt to close that gap. Numerous books, journals, papers, and
dissertations have been cited in order to guarantee effective study.

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 CHAPTER-III
RESEARCH METHODOLOGY

The process of solving problems by carefully and methodically handling the

gathering, analyzing, and interpretation of data and facts is known as research
methodology. Research technique, to put it simply, is the set of sequential actions that
a researcher must take in order to explore an issue with specific goals in mind.
Consequently, the following methodological topics are covered in this chapter:

3.1 Research Design

The conceptual framework that the research is carried out inside is referred to as the
research design. It also specifies the procedures and methods to be followed in order
to get the data needed to address the challenges. Gathering the data and information
needed for the study is the first step in the process. Descriptive research design is used
in this study. This research is of the exploratory variety. This study's primary goal is
to identify the variables impacting Kathmandu residents' internet buying habits with
regard to boutique goods.

3.2 Population and Sampling

For the purposes of the study, a specific subset of the Kathmandu Valley's residents
was taken into account. The study looks at the variables that affect Kathmandu Valley
boutique product online purchase behavior. It is predicated on a survey of consumers
of boutique goods. Therefore, those who consume boutique products in the
Kathmandu Valley make up the study's population.

600 respondents in all were included in the study's sample size and given
questionnaires. 600 responders make up the population sample. Out of the 600
participants, only 400 completed the questionnaire; the other 200 chose not to reply
and sent the questionnaire back. As a result, the study's sample size of 400
respondents represents the study's overall population. Only women in the Kathmandu
Valley who are above 20 are included in the sample. The people that answered were
the buyers of the boutique goods. They were regarded as the bulk of people living in
the Kathmandu Valley. The products were known to the respondents, and
convenience sampling was employed to get the data. This approach proved to be the

12
most beneficial given the time and budgetary limitations, as it provides the most
effective means of contacting the participants.

3.3 Sources of Data

Primary sources provided the data that were gathered for the study. A questionnaire
that respondents self-administered was used to gather primary data. The respondents
were given pertinent questionnaires that had been created. All of the respondents were
residents of the Kathmandu Valley who were at least 20 years old.

3.4 Data Collection Procedures

With the use of the self-administered questionnaire, data were gathered. Written
questions were included in the questionnaires, which the researchers used to collect
and record the data they needed for the study. Respondents provided answers to
questions that were intended to look at key study variables. Measurements are used to
test the quality of the data after it has been collected. The researcher identified the
dependent and independent variables, as well as the demographic features, from a
related literature review to create the questionnaire used in this study.

The questions on the questionnaire were split into those measuring the independent
and dependent variables. Respondents received the questionnaires via email and, if
necessary, printed sets as well. The questionnaire page provided the respondents with
an accurate definition of the study's purpose.

The majority of the questionnaires used for data collection at the business were given
out in person and returned after 15 to 20 minutes. Participant mistake can result in
poor response rates, guesswork, or inability to read and comprehend the question. It
can also occur from feelings related to physical, mental, or stress conditions at the
time of answering the question. I made an effort to make the questions short and
simple to read as a consequence. People's opinions were statistically measured using
the Likert scale. In this study, a five-point Likert scale was employed:

1. Strongly Disagree (SD)

2. Disagree (D)
3. Neutral (N)
4. Agree (A)
5. Strongly Agree (SA)

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3.5 Data Analytical
Valid replies to the questionnaire were used in the analysis that followed the data
collection. SPSS and Microsoft Excel were utilized for statistical analysis of the data.
To test the theories, a variety of statistical analysis approaches were employed. The
primary instruments employed to achieve the study's goals were descriptive statistics,
reliability analysis, frequency analysis, measures of central tendency, and bivariate
correction analysis. Finding the link between dependent and independent variables
and testing the hypothesis presented in chapter one constitute the main analysis tasks.
ANOVA, Pearson correlation hypothesis testing, measures of central tendency, and
frequency distribution for multiple measures.

3.5.1 Descriptive Analysis

The mean and standard deviation of descriptive statistics were employed to
characterize the outcomes. The respondents' degree of inclination towards a specific
element related to consumer buying decisions was ascertained by utilizing the mean
values. The data indicating the degree to which the entire response differed from the
mean values were also ascertained using the standard deviation.

3.5.2 Hypothesis Testing

This section examines potential connections between previously developed variables.
The researcher used regression and correlation analysis to evaluate the hypothesis.

Coefficient correlation: The relationship between independent and dependent

variables is ascertained by correlation analysis. In addition to displaying the link
between the independent and dependent variables, the correlation analysis indicates
whether there is a meaningful association between the independent and dependent
variables. The researcher can clearly see whether variables have a positive or negative
impact on online buying behavior and whether a variable has a substantial impact
after performing correlation analysis.

Multiple regressions: To create a model and anticipate the link between an

independent and dependent variable, regression analysis is carried out. The regression
model indicates which variables significantly influence online buying behavior in
addition to indicating if the model as a whole fits well. An estimated model that may
be used to forecast online buying behavior is also constructed with the aid of
regression models.

14
3.5.3 Statistics Tools use to Analysis
The study was carried out utilizing a quantitative approach. The clients of the
conveniently chosen boutique business enterprise in the Kathmandu valley will be
surveyed using the quantitative method. Customers' purchase decisions will be the
subject of data collection using a self-administered 5-point Likert-scale questionnaire.

Regression Model
The model for the study is:

Y = a + b1P + b2CA + b3 PR + e

Where,
Y = online shopping behavior
P = prices
CA = Consumer attitudes
PF = perceived risk
e represents the error
The proportionate change in a consumer's online shopping choice as a result of a unit
change in the independent variables is represented by the regression coefficients (b1,
b2, and b3).

3.6 Research Framework

Both formative and reflective estimation approaches were included in the study's
conceptual model. Online shopping behavior was measured using the formative
measurement paradigm, and price, perceived risk, and customer attitude were
measured using the reflecting measurement model. Models of reflective and formative
analysis have different statistical prediction criteria. Since formative measurement
scale artifacts are more likely to represent a single source and aren't inherently highly
correlated, internal precision is an issue in formative calculation models.

Reflective measurement model artifacts, on the other hand, need to be associated and
indicate critical outer loading values. Both the formative and reflecting measurement
strategies were examined independently for this study. Convergent validity and
discriminate validity for formative measurement models (e.g., online shopping
behavior) as well as construct reliability and validity for reflective and formative
measurement models were evaluated using guidelines. The relationship between the

15
dependent and independent variables provided in the schematic design below is
depicted in

Figure 3.1
Research Framework on online shopping behavior in boutique business

Independent variables Dependent Variable

Prices

Online shopping
Perceived Risks Behavior

Consumer Attitudes

Source: Indriani, I. A. D. (2016)

3.6.1 Definition of Variables

a) Prices
A product's pricing is one of the main factors influencing what customers choose to
buy. This abstract investigates how price affects consumer decision-making
processes, looking at how perceptions of price-quality, perceived value, and price
sensitivity affect customer behavior. Pricing has a big influence on how consumers
think and act. Prices carry a wealth of information regarding the worth, caliber, and
competitiveness of a good or service. They are more than just figures on a price tag. A
consumer's choice of decision can be influenced by price. While higher costs can
elicit strong emotions, lower prices can appeal to reason and logic. Businesses can
adjust their pricing strategy to suit the type of product and target market by knowing
these characteristics (Bigne and Alcañiz et al., 2008).

b) Perceived Risk
Risk perception was valued equally with other considerations, such cost. There is a
strong correlation between risk and buy intent; a high risk product implies a low intent
to purchase, and vice versa. However, Ariffin et al. (2018) clarified that, from the
standpoint of the consumer, perceived risk might take various forms. Financial,
product, security, time, social, and psychological risks are among the perceived

16
concerns. All of these risks are connected to the intention to make an online purchase,
but social risk was determined to be the most important by this study. Social risk
includes both fear and family and friends' criticism of the internet transaction.

c) Consumer attitudes
A consumer's attitude toward a product or behavior is defined as their set of feelings,
intentions, and beliefs. One or more of its three compartments—behavioral, affective,
and cognitive—can be altered. Each customer has unique qualities that the merchant
may not readily observe. According to Chen, cited by Javadi et al. (2012), an attitude
toward an activity can be either positive or negative depending on how one feels
about engaging in that conduct. Consumer attitudes, which are influenced by their
evaluation and emotional responses, will impact their intention to buy a product.

d) Online Shopping Behavior

Online purchasing behavior is a person's general assessment of a product or service
during their online shopping experience, which may have positive or negative
outcomes. According to earlier research, behavior is a multifaceted term that has been
interpreted in a variety of ways (Li and Zhang, 2002). Numerous academics use
various metrics to gauge consumer behavior. The consumer's attitude toward a
utilitarian incentive (convenience, variety seeking, and the quality of merchandise,
cost benefit, and time effectiveness) is referred to as the first dimension, according to
Gozukara et al. (2014). Hedonic motivation (happiness, fantasy, escapism,
awakening, sensuality, and enjoyment) is discussed in the second dimension, while
perceived utility and simplicity of use are mentioned in the third, according to Baber
et al. (2014). Perceived danger is another factor that influences how consumers
behave when they shop online.

17
 CHAPTER-IV

RESULTS AND DISCUSSION

This research section is based on an examination of primary data obtained via
questionnaires from 400 respondents. The testing of the theories developed in the first
chapter is also included in this chapter. With the aid of SPSS version 20, the data are
analyzed, and the results are displayed in the form of tables and diagrams for easy
interpretation.

4.1 Opinion on priority for most important factor influencing online shopping
behavior.
Kathmandu is home to the respondents who took part in the questionnaire survey. A
survey was created and published, but only 400 of the 600 participants—who are the
boutique's regular customers from the Kathmandu Valley—responded. to learn what
they think about the main elements influencing consumers' decisions to shop online.
Every answer obtained from the distributed surveys was legitimate.

The respondents were asked five-point Likert scale questions for this purpose, with
the numbers 1, 2, 3, 4, and 5 representing strongly disagree, disagree, neutral, agree,
and strongly agree, respectively. The SPSS version 20 program has been used to
examine these answers. In addition, convenience sampling was used for the sample in
this investigation.

There are two categories of variables used in this study: independent and dependent
variables. The following are the independent variables:

1. Price
2. Perceived Risks
3. Consumer attitude

On the contrary there was only one dependent variable which is:
1. Online buying behavior

18
 4.1.1 Survey on price
Customers in Kathmandu have been asked to rate the perceived importance of various
elements impacting their online buying behavior using a 5-point Likert scale, with 5
representing strongly agree and 1 representing strongly disagree.

Table 4.1
Price measure from respond customer
Total Weighted
Statements 1(SD) 2 3 4 5(SA) Weighted Mean
1) Price is major factor when deciding
to buy boutique products online. 20 40 93 167 80 1447 3.6175
2) I often compare prices of boutique
products across different online
platforms before making a purchase. 12 30 113 185 60 1451 3.6275
3) The price range of boutique products
online matches my expectations 57 102 31 86 124 1318 3.295
4) I would buy more boutique products
online if prices were lower. 15 88 82 96 109 1366 3.415
5) I find boutique products online to be
overpriced compared to their quality. 0 21 8 205 166 1716 4.29
Grand Weighted Mean 3.649
Source: Questionnaire Survey (2024)
With a weighted mean value of 3.6175, Table 4.1 demonstrates that the majority of
respondents agreed with the assertion that product pricing is essential to them when
they purchase online. In a similar vein, the respondents concurred that comparing
boutique product costs on various internet platforms is a good idea, providing a mean
weighted value of 3.6275. In a similar vein, the majority of respondents concurred
that the mean weight of 3.295 indicates that the price range of boutique products sold
online matches expectations. Additionally, with a mean score of 3.415, respondents
concur that they would purchase more boutique goods online if prices were lower.
With a mean score of 4.29, the respondents strongly agreed that boutique products
sold online are costly in relation to their quality. The grand weighted mean for the
price-related statements is 3.649, indicating that respondents believe price has a
significant impact on consumers' online buying decisions in the Kathmandu Valley.

4.1.2 Survey on perceived risk

A five-point Likert scale, with five representing strong agreement and one strongly
disagreeing, has been employed to measure respondents' perceived risk in relation to

19
 their safety when buying online. According to our research, safety is the level of
protection or resistance against danger.

Table 4.2
Perceived Risk from Online Behavior Stated by Respondent
Total Weighted
Statements 1(SD) 2 3 4 5(SA) Weighted Mean
1) I am concerned about the security of
my personal and financial
information when shopping for 0 0 14 112 274 1860 4.65
boutique products online.
2) I am afraid that the boutique products
I purchase online may not match the 0 5 62 183 150 1678 4.195
descriptions or images provided.
3) I worry about the hidden costs (e.g.,
shipping fees, taxes) when shopping 0 10 55 163 172 1697 4.2425
for boutique products online.
4) I feel that there is a risk of not
receiving the products I order online 0 0 3 194 203 1800 4.5
on time.
5) During online shopping it is difficult
to choose and make comparison with 0 33 56 124 187 1665 4.1625
other products.
Grand Weighted Mean 4.35

Source: Questionnaire Survey (2024)

With a weighted mean of 4.65, Table 4.2 demonstrates that the respondents strongly
agreed with the statement that they are concerned about the security of personal and
financial information when shopping online for boutique products. The mean
weighted value of 4.195 indicates that respondents also agreed that they are scared
that boutique things they buy online would not match the descriptions or photographs
supplied. With a mean weighted value of 4.2425, the majority of respondents also
concurred that they worry about unstated expenses (such as taxes and delivery
charges) while purchasing boutique products online. Additionally, respondents with a
mean score of 4.5 strongly agreed with the statement that they felt there was a chance
they wouldn't receive the things they ordered online in time. The majority of
respondents, with a mean weighted of 4.1625, agreed with the statement that it is
challenging to choose and compare products while buying online. The grand weighted
score for the security-related statements is 4.35, the highest score among the other

20
independent variables. This suggests that respondents view perceived dangers as a
significant factor influencing customers' online buying decisions in Kathmandu.

4.1.3 Survey on consumer attitude

This table uses a 5-point Likert scale, with 5 representing strong agreement and 1
representing strong disagreement, to show respondents' assessed importance of
consumer attitudes surrounding online buying behavior. The condition of feeling or
behavior toward a product that is frequently produced based on a combination of
elements is referred to in our study as the attitude factor.

Table 4.3
Consumer attitude from Online Behavior Stated by Respondent

Total Weighted
Statements 1(SD) 2 3 4 5(SA) Weighted Mean
1) I find shopping for boutique
products online to be convenient
and time saving. 12 31 30 215 112 1584 3.96
2) I enjoy the variety of boutique
products available online. 75 55 12 123 135 1388 3.47
3) I believe that online shopping for
boutique products provides better
deals and discounts compared to
physical stores. 163 53 0 104 80 1085 2.7125
4) I think that the online shopping
experience for boutique products
is enjoyable. 0 77 107 107 109 1448 3.62
Grand Weighted Mean 3.44
Source: Questionnaire Survey (2024)
With a weighted mean score of 3.96, Table 4.3 indicates that most respondents
strongly agreed that online shopping is convenient and time-saving. With a weighted
mean score of 3.47, the respondents also concurred that they like the range of
boutique products that are offered online. However, with a weighted mean of 2.7125,
it was found that there was a moderate degree of agreement and disagreement with the
statement that internet shopping for boutique products offers greater deals and
discounts compared to physical locations. In a same vein, they strongly agree (mean
weighted response: 3.62) that purchasing boutique goods online is a pleasurable
experience. The customer attitude statements have the lowest grand weighted mean
among the independent variables, 3.44, according to the findings.

21
 4.1.4 Survey of online shopping behavior
The importance of respondents' online buying activity for boutique products is
represented in this table. A 5-point Likert scale—with 5 representing strong
agreement and 1 representing extreme disagreement—has been employed. According
to our research, an individual's general exception and evaluation of goods or services
during an online purchase can have positive or negative effects.

Table 4.4
Survey on online shopping behavior
Total Weighted
Statements 1(SD) 3 2 4 5(SA) Weighted Mean
1) I prefer online purchase because it is
easy for me to understand and the 11
information provide is relevant on
boutique product. 19 105 109 156 1572 3.93
2) I Frequently (once in a month) buy
boutique products online. 46 51 110 107 86 1277 3.1925
3) I do not mind paying in advance for the
product by the online shopping. 23 33 166 101 77 1243 3.1075
4) In my overall experience I am satisfied
with online shopping. 60 121 76 56 87 1234 3.085
Grand Weighted Mean 3.329
Source: Questionnaire Survey (2024)

Table 4.4 indicates that, with a mean weighted value of 3.93, the majority of
respondents agreed to prefer making purchases online. In a similar vein, the majority
of respondents (mean weighted value of 3.1925) acknowledged that they regularly
purchase boutique products online. The respondents also concurred that they have no
problem paying for the goods in advance, with a mean score of 3.1075. Similarly,
with a weighted mean of 3.085 for both overall experience and pleasure with online
purchasing, respondents remained impartial. It is discovered that the online buying
habit has a grand weighted mean score of 3.329.

4. 2 Descriptive Analysis
the descriptive analysis of the information gathered from the study questionnaire
using a variety of central tendency measures, such as frequency, mean, standard
deviation, and minimum and maximum values. Using three dependent and one
independent variable, this study aims to determine the factors that influence the online
boutique produce purchase behavior and consumption patterns of residents of the

22
Kathmandu valley. Nineteen questions were used to define these factors precisely and
gather the responses. These dimensions' central trends will be useful in determining
the factors influencing consumers' online buying habits.

Table 4.5
Structure of descriptive statistics of Online Shopping Behavior on Boutique Products

N Minimum Maximum Mean Std.

Deviation
Price 400 3.295 4.29 3.649 0.266
Perceived Risk 400 4.1625 4.65 4.35 1.227
Consumer attitude 400 2.713 3.96 3.44 1.11
Valid N (list wise) 400
Source: SPSS analysis
Descriptive data for the factors pertaining to online buying behavior are displayed in
Table 4.5. The findings indicate that, with regard to several assertions about online
buying behavior, respondents' highest mean was 4.35 (SD = 1.227) for perceived risk,
while their lowest mean was 3.44 (SD = 1.11) for consumer attitude. Since the means
value is higher than the test value (3) and falls within the agreed-upon band, it is
evident that all respondents responded positively to the likert statements. This implies
that every opinion statement is a significant variable.

4.3 Inferential Analysis

This section aims to evaluate the hypothesis put forward in the previous chapter and
present the methodology for assessing the data. Through the application of inferential
statistics, researchers can draw conclusions or extrapolate findings from sample data
to the entire population. It makes it possible to infer population values from one or
more observational samples. To ascertain whether observed differences between
groups or variables are true or the result of random variation, inferential analysis
evaluates hypotheses. It generates new data by extrapolating generalizations and
predictions from samples.

4.3.1 Correlations Analysis

The study examined correlations between variables to determine the direction and
intensity of their association. An examination of Pearson's correlations was performed
for the variables that had straightforward multi-option responses. To evaluate the

23
strength or degree of the association between the research variables, a correlation
matrix was created. When there is a positive correlation, the relationship is positive in
direction, with one increasing in response to the other's increase. An increase in one
when the other falls is revealed by a negative correlation, which is the opposite of the
above. This is an investigation of the association between price, consumer attitude,
and perceived risk as factors influencing online shopping behavior.

Table 4.6
Table 4.6 OSB PRICE PR CA
O.S.B.
OSB Pearson Correlation 1
Price CA
Sig. (2-tailed)
PRICE Pearson Correlation 0.639** 1
Sig. (2-tailed) 0.000
PR Pearson Correlation 0.251 0.246 1

Sig. (2-tailed) 0.046 0.078

CA Pearson Correlation 0.766** 0.705** 0.507** 1
Sig. (2-tailed) 0.032 0.000 0.004
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

Correlation Analysis
Source: SPSS analysis
The bivariate Pearson's correlation coefficients between the various study variables
are shown in Table 4.6. The data from 400 respondents who purchased products from
boutiques during the 2023–2024 period is the basis for the correlation coefficients.
Online shopping behavior (OB) is the dependent variable, and price (PRICE),
perceived risk (PR), and customer attitude (CA) are the independent factors. This
study section presents the relationship between the dependent and independent
variables.

Online shopping (OB) has a positive correlation coefficient (r=0.639 v, r=0.251 and
r=0.766 correspondingly) with the explanatory variables PRICE, PR, and CA. A
positive correlation was seen with OB; the p-value (p < 0.05) for PRICE, PR, and CA
is 0.000, and the statistical significance of the positive association with OB at 5% is
indicated by the values of 0.046 and 0.032.

24
4.3.2 Regression Analysis
A statistical test that enables determining the influence of the independent variable
over the dependent variable is regression analysis. Most of the time, the outcome that
a researcher hopes to discover is the dependent variable. It aids in precisely estimating
the amount by which the independent variable will affect the dependent variable
(Sarstedt and Mooi, 2014).

To find the association between the dependent variable—online shopping behavior for
boutique products—and the independent variables—price, perceived risk, and
customer attitude—multiple regression analysis was used. Evaluating many
independent factors that simultaneously affect the dependent variables was one
benefit of using multiple regression analysis. It gives us further insight about the
relationship's incline.

Multiple regression model used in this study is;

Y = a + b1PRICE+ b2PR + b3 CA + e
Where,
Y = consumer purchase decision
PRICE = Price
PR = Perceived Risks
CA = Costumer Attitude
e represents the error
The proportionate change in a consumer's online shopping choice as a result of a unit
change in the independent variables is represented by the regression coefficients (b1,
b2, and b3).

Table 4.7Model Summary of Online Shopping Behavior on Boutique Products

Model R R Square Adjusted R Square Std. Error of the Estimate

1 0.825a 0.681 0.645 1.09180
a. Predictors: (Constant), PRICE, PR, CA
b. Dependent Variable: Online Shopping Behavior
Source: SPSS Analysis

Values and R are shown in Table 4.7. The correlation between the independent and
dependent variables is shown by this simple R. Its correlation coefficient is 0.825, or
82.5%, which is very high. The adjusted measures the extent to which the independent
25
variables—price, perceived risks, and consumer attitude—can explain the whole
variation in the dependent variable, or online buying behavior. The adjusted R square
for this study is 64.5%, or 0.645. This indicates that the characteristics included in this
study influence online buying behavior 64.5% of the time, while factors other than
those illustrated by this model influence the remaining 35.5% of the time.

Table 4.8 ANOVA Analysis

Model Sum of Squares df Mean Square F Sig.
1 Regression 112.031 5 22.406 18.797 0.000b
Residual 52.449 44 1.192
Total 164.480 49
Source: SPSS Analysis

As demonstrated in Table 4.8, the ANOVA characterizes the data's fitness over the
regression equation, or, to put it another way, how well the data interprets the
dependent variable, or online purchasing behavior. Our study's regression model
dramatically outpredicts the fitness of our independent variable. According to the
results, the regression model of this study strongly predicts the fitness of the outcome
variable, and the p-value is less than 0.05, indicating a satisfactory match.

Table 4.9 Results of Factors Affecting Online Shopping Behavior

Unstandardized Standardized
Coefficients Coefficients t Sig.
B Std. Error Beta

(Constant) 4.996 1.629 2.782 0.008

PRICE 0.133 0.074 0.726 2.653 0.014

Perceived Risk -0.062 0.059 -0.51 0.370 0.056

Costumer Attitude 0.155 0.058 0.096 0.742 0.048

a. Dependent Variable: Online Shopping Behavior on Boutique Products
Source: SPSS Analysis

Table 4.9 presents the findings from the coefficients table, which will assist us in
figuring out the data required to forecast our dependent variables' behavior when
making purchases online. We can also see how well our dependent variables
statistically contribute to our independent variable by examining our "Significant
26
column." We will be able to forecast and create the regression equation for our
investigation with the assistance of column B under the unstandardized co-efficient.
Based on the aforementioned findings, we may analyze how price, perceived hazards,
and customer attitude affect online purchase behavior and how much of an impact
they have.

The outcome indicates that pricing has a beta of 0.133, meaning that a 1% shift in
customer online buying behavior results in a 13.3% price rise while all other variables
stay the same. Similar to perceived risk, which has a negative and insignificant impact
on online shopping behavior with a negative beta of -0.062 and a sig. of 0.056,
consumer attitude has a beta of 0.155, explaining why the two variables mentioned
above have a positive and statistically significant impact on online shopping behavior
at the 5% level of statistical significance.

4.4 Hypothesis Testing

H1: H1: Price offered on online shop has a favorable association with consumers'
online buying behaviors.

Table 4.8 indicates a noteworthy correlation between online purchasing behavior and
price. Given that the coefficient B value is 0.133, there is a strong positive correlation
between them. As the p-value is smaller than the benchmark, or 0.05, which is 0.05,
hypothesis 1 is accepted.

H2: Perceived risk of online shopping is negatively connected with online purchase
behavior of customers.

With the aid of the findings, Table 4.8 illustrates that the perceived risks' coefficient B
was -0.062. But since the p-value is more than 0.05, or 0.056, hypothesis 2 is
accepted.

H3: Costumer's attitude has a favorably association with online buying behavior of
consumers.

The coefficient B of consumer attitude is 0.155, as Table 4.8 shows. Furthermore, the
p-value is below the 0.05 threshold. As a result, it is significant, and hypothesis 3 is
likewise approved.

27
4.5 Findings of study
Online buying behavior by consumers is one of the most crucial marketing aspects to
examine. In order to make money and stay in business, marketers must concentrate on
the needs and desires of their customers. Through conducting research, marketers can
learn about the most recent trends influencing customer purchasing decisions. This
study tested the numerous sets for the study using a likert scale model analysis,
descriptive statistics testing, regression analysis, and correlation analysis. It also
looked at the influence of internet purchasing behavior on boutique produce in
Kathmandu for the year 2023–2024. The parts that follow include a discussion of the
test results.

All variables are found to be able to affect online shopping behavior for boutique
products in Kathmandu, with three ones being the most influential. Price, perceived
risk, and customer attitude are the three primary criteria that have been put to the test.
Positive correlation between the factors and OB is indicated by the correlation
coefficient. According to the p-value (p < 0.05) of 0.000 and 0.032 for PRICE and
CA, respectively, the positive correlation with OB is statistically significant at 5%.
The P-value is 0.056, and it has a negative link with OB aside from perceived risk.
Other than PRICE and CA, there was significance discovered in the results. These
findings are also consistent with previous research and literature by Sah (2021),
Indriani (2016), Alsmadi (2018), Indriani (2016), and Shahzad (2015), who have
consistently argued that there is a positive correlation between independent variables
and online shopping behavior.

The correlation between the independent and dependent variables is shown by this
simple R. Its correlation coefficient is 0.825, or 82.5%, which is very high. The
adjusted R-square for this study is 0.645. This indicates that the study's components
account for 64.5% of the influence that these factors have on online buying behavior,
with other factors accounting for the remaining 35.5%. Similar to this, an ANOVA
with a p-value less than 0.05 is said to indicate a good fit. The beta coefficients for
price and consumer attitude are 0.133 and 0.155, respectively. This means that a 1%
change in a consumer's online shopping behavior results in increases of 13.3% and
15.5%, respectively, when all other variables stay the same. The results of Gaudel
(2022), Indriani (2016), Rungsrisawati et al. (2019), and Dani (2017) are in agreement
with this one. On the other hand, online purchasing behavior has a negative impact on

28
perceived risk. The negative beta value of -0.062 for perceived risk explains why a
1% shift in a consumer's online shopping behavior results in a 6.2% drop.This result
is in line with research by Yunan Xu et al. (2018) and Azam (2015). Because the tests
validated the hypothesis, the hypothesis as a whole was accepted. The findings and
the literature, as well as earlier research by Arora and Aggarwal (2018), Al-Debei
(2015), and Chen et al. (2015), revealed significance.This study, however, conflicts
with research by Alsmadi (2018), Dani (2017), Indriani (2016), Shahzad (2015),
Gaudel (2022), and Indriani (2016). According to this study, the variables used to
examine respondents' online buying habits in Kathmandu have the most influence on
boutique products.

29
 CHAPTER-V
SUMMARY AND CONCLUSION

5.1 Summary
This study examines the elements that influence online purchasing behavior and
determine boutique output. The primary goal of the research is to determine the
impact, relationship, and gaps between various aspects on boutique products. A
descriptive research design with structured questionnaires is employed for the 2023–
2024 study.

Three major influencing factors have been identified in research studies to determine
the study's outcome: pricing, perceived risk, and client attitude. According to the
study, pricing and customer attitude have a positive correlation—a p-value of 0.000
and 0.032, which is less than 0.05, or statistically significant at 5%—with online
buying behavior. On the other hand, there is a negative correlation (p-value >0.056)
between perceived risk and online shopping behavior.

The basic R in the regression model is 0.825, or 82.5%, indicating a very good
correlation. 0.645 is the modified R-square. This indicates that the study's components
account for 64.5% of the influence that these factors have on online buying behavior,
with other factors accounting for the remaining 35.5%. Similar to this, an ANOVA
with a p-value of less than 0.05 indicates a good fit and a significant prediction of the
end variable's fitness.

Similarly, the results of the coefficient beta of pricing and customer attitude are 0.133
and 0.155, respectively, indicating that a 1% change in a consumer's online buying
behavior results in increases of 13.3% and 15.5%, respectively, while all other
variables stay the same. However, perceived risk exhibits negative beta, or -0.062,
indicating that a 6.2 percentage drop in PR results from a 1 percentage increase in
OB. Furthermore, because the experiments confirmed the premise, the entire theory
was accepted.

5.2 Conclusions
The study's conclusions paint a clear picture of how customer behavior affects
internet buying. Customers will purchase more in the future and remain devoted to
online shopping if they believe there is less risk associated with the goods and

30
services. Conversely, if a boutique offers high-quality goods at a fair and competitive
price, customers will be happy and continue to shop online. Accordingly, this study
comes to the conclusion that the three most important considerations for customers
when they choose to shop online are perceived risk, pricing, and attitude. Based on
the responses that were gathered, these are very important factors. Customers will
focus more on the selection of goods and less on price if the price of an item is
roughly the same whether it is purchased online or in a local store. If, however,
additional costs such as shipping, tax, or other hidden fees are added without clear
disclosure to the customer, they will not make any more online purchases.

This study may serve as a catalyst for e-commerce by assisting a large number of
online shoppers in realizing the benefits of e-commerce and exploring alternative
shopping options beyond traditional brick-and-mortar establishments. Based on all of
data, we can thus say that there is a strong and positive correlation between online
boutique product and online buying behavior.

5.3 Recommendations
Based on the study's findings, boutiques should take significant steps to protect online
shoppers' privacy, attempt to cut down on hidden costs and increase transparency,
focus heavily on pricing and quality, and increase product diversity to make online
shopping pleasurable.

Additionally, based on the results, online respondents expressed concern about their
products. As a result, online boutique businesses should offer clear product details and
information to make the decision to buy easy for customers and to build their
confidence. This will encourage customers to make more purchases and reduce
concerns about the performance of their products.

Future research may take into account additional variables that could influence online
purchasing behavior, since these three characteristics are not the only ones that
influence it. Moreover, the study's sample is restricted to the Kathmandu Valley.
Future research might include a larger sample size from more regions. Additionally,
this study aids managers overseeing internet businesses in their understanding of
consumer behavior. Additionally, we discovered that people in Kathmandu have
begun to use, trust, and place their faith in online websites more frequently. As a
result, online businesses should concentrate more on risk prevention and attempt to

31
motivate customers with discounts, special offers, free delivery, and other incentives
in order to build a reliable rapport with them. These findings assist boutique product
online firms in upholding their solid reputations through the provision of high-quality
products and in comprehending the factors that influence online shopping behavior.

32
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 ANNEX

Questionnaire

Dear Respondents,

I am conducting the research entitled “Factor Affecting Online Shopping Behavior of

Boutique Products” in partial fulfillment of the requirement of MBS degree. I
appreciate your willingness to participate and value your feedback. Your response
will remain strictly confidential. Please take few minutes to fill the question. I hope to
receive your favorable responses and I would like to acknowledge your participation
in this study.
Sushmita Satyal
Researcher
Shanker Dev Campus

Independent Variables
Using a scale of 1 to 5 please rate the following aspect of bond (1= Strongly Disagree
(SD), 2= Disagree, 3= Neutral, 4= Agree, 5= Strongly Agree (SA))

a) Prices

1(SD) 2 3 4 5(SA)

Price is major factor when deciding to buy

boutique products online.

I often compare prices of boutique products

across different online platforms before making a
purchase.

The price range of boutique products online

matches my expectations

I would buy more boutique products online if

prices were lower.

I find boutique products online to be overpriced

 compared to their quality.

b) Perceived Risk

1(SD) 2 3 4 5(SA)

I am concerned about the security of my

personal and financial information when
shopping for boutique products online.

I am afraid that the boutique products I

purchase online may not match the descriptions
or images provided.

I worry about the hidden costs (e.g., shipping

fees, taxes) when shopping for boutique
products online..

I feel that there is a risk of not receiving the

products I order online on time.

During online shopping it is difficult to

choose and make comparison with other
products.

c) Consumer Attitudes
1(SD) 2 3 4 5(SA)

I find shopping for boutique products online to

be convenient and time saving.

I enjoy the variety of boutique products

available online.

I believe that online shopping for boutique

products provides better deals and discounts
compared to physical stores.
I think that the online shopping experience for
boutique products is enjoyable.

Dependent Variable
a) Online shopping behavior

1(SD) 2 3 4 5(SA)

I prefer online purchase because it is easy for me

to understand and the information provide is
relevant on boutique product.

I Frequently (once in a month) buy boutique

products online.

I do not mind paying in advance for the product

by the online shopping.

In my overall experience I am satisfied with

online shopping.
6/30/24, 3:13 PM Summary Report

FACTORS AFFECTING ONLINE SHOPING BEHAVIOUR OF B... Similarity Index

By: Sushmita Satyal
As of: Jun 27, 2024 12:28:03 PM 7%
10,063 words - 40 matches - 5 sources

Mode: Summary Report

sources:

400 words / 4% - Internet from 21-Aug-2020 12:00AM

www.ijicc.net

146 words / 1% - Crossref

Gunja Kumari Sah. "Factors Affecting Online Shopping Behaviour of Boutique Products in Kathmandu Valley", Dristikon: A
Multidisciplinary Journal, 2021

99 words / 1% - Internet from 24-Jan-2020 12:00AM

www.scribd.com

59 words / 1% - Internet from 09-Jan-2023 12:00AM

elibrary.tucl.edu.np

56 words / 1% - Internet from 14-Sep-2018 12:00AM

www.cbmsbm.com

paper text:

ABSTRACT

The objective of this study is to identify the key elements that influence the online purchasing behavior of

consumers who buy boutique products. In an era where the internet provides access to a vast array of information and the digitization

of various aspects of life is prevalent, developing and emerging markets lag behind developed markets and must strive to match their

standards in order to distinguish themselves. This study will specifically examine three aspects that impact consumer behavior in

online purchasing: price, perceived risk, and customer attitude. This study employs a quantitative approach, which facilitates the
verification and application of the hypothesis. This is a correlation research that seeks to determine the link between the variables.

The study utilized the statistical software SPSS to conduct various analyses, including descriptive analysis, correlation analysis, and

multiple regression analysis. The empirical data was gathered using a questionnaire survey administered to a sample size of 400

individuals. The study was specifically aimed towards residents of the Kathmandu valley. vThe purpose

of this study is to find out the influencing elements that affecting the online buying behavior amongst

customers of boutique products. In an era where the internet provides access to a wide range of information and the digitization of
various aspects of life is prevalent,

developing and emerging markets are still lagging behind the more advanced markets. To

https://app.ithenticate.com/en_us/report/109360091/summary 1/15
6/30/24, 3:13 PM Summary Report

FACTORS AFFECTING ONLINE SHOPING BEHAVIOUR OF B... Similarity Index

By: Sushmita Satyal
As of: Jun 27, 2024 12:28:03 PM 7%
10,063 words - 40 matches - 5 sources

Mode: Summary Report

sources:

400 words / 4% - Internet from 21-Aug-2020 12:00AM

www.ijicc.net

146 words / 1% - Crossref

Gunja Kumari Sah. "Factors Affecting Online Shopping Behaviour of Boutique Products in Kathmandu Valley", Dristikon: A
Multidisciplinary Journal, 2021

99 words / 1% - Internet from 24-Jan-2020 12:00AM

www.scribd.com

59 words / 1% - Internet from 09-Jan-2023 12:00AM

elibrary.tucl.edu.np

56 words / 1% - Internet from 14-Sep-2018 12:00AM

www.cbmsbm.com

paper text:

ABSTRACT

The objective of this study is to identify the key elements that influence the online purchasing behavior of

consumers who buy boutique products. In an era where the internet provides access to a vast array of information and the digitization

of various aspects of life is prevalent, developing and emerging markets lag behind developed markets and must strive to match their

standards in order to distinguish themselves. This study will specifically examine three aspects that impact consumer behavior in

online purchasing: price, perceived risk, and customer attitude. This study employs a quantitative approach, which facilitates the
verification and application of the hypothesis. This is a correlation research that seeks to determine the link between the variables.

The study utilized the statistical software SPSS to conduct various analyses, including descriptive analysis, correlation analysis, and

multiple regression analysis. The empirical data was gathered using a questionnaire survey administered to a sample size of 400

individuals. The study was specifically aimed towards residents of the Kathmandu valley. vThe purpose

of this study is to find out the influencing elements that affecting the online buying behavior amongst

customers of boutique products. In an era where the internet provides access to a wide range of information and the digitization of
various aspects of life is prevalent,

developing and emerging markets are still lagging behind the more advanced markets. To

https://app.ithenticate.com/en_us/report/109360091/summary 1/15