E‐tail spending patterns and the importance of online store familiarity

Abstract

Purpose

This study aims to explore patterns in e‐tail spending across different demographic groups and to predict which households are the most frequent shoppers and highest spenders. Further, it aims to investigate which households are least likely to purchase from unfamiliar online stores.

Design/methodology/approach

Using a random sample of Florida households, the study is the first to use probit and ordered probit models to study Internet purchasing behavior.

Findings

Younger, college educated, higher income households living in suburban, rural and small towns spend and shop the most online. Caucasians purchase online more often than African Americans and Hispanics but spend about the same amount. The study also finds that male, Hispanic, college educated and younger consumers are more willing to purchase from unfamiliar online stores.

Originality/value

This study provides new evidence on factors affecting household online spending and buying decisions. Previous studies have not used an ordered probit to model different levels of spending and this new specification provides information about which demographic groups are the most (or the least) frequent buyers as well as which demographic groups are the highest (or the lowest) e‐tail spenders. This study also investigates which demographic groups are most likely to shop only at stores with whom they are already familiar.

Citation

Stranahan, H. and Kosiel, D. (2007), "E‐tail spending patterns and the importance of online store familiarity", Internet Research, Vol. 17 No. 4, pp. 421-434. https://doi.org/10.1108/10662240710828076