Using the Interpretative Structural Modeling Approach for Understanding the Relationships of Drivers of Online Shopping: Evidence From a Developing Economy

Abstract

The internet has paved the way for a revolution in the shopping industry via online platforms. As online shopping transactions become popular, it is increasingly important to understand the drivers that influence the consumers in availing such platforms. Furthermore, the differences between developed and developing economies are evident from socioeconomic, regulatory, and e-commerce disparities. Understanding such domain from a developing economies perspective is not well explored in the current literature. Thus, this study aims to identify the relationships among drivers of consumers in pursuing online shopping in a developing economy (i.e., the Philippines) using interpretative structural modeling. The study identified six drivers: “convenience/ease of use,” “competitive price,” “product availability,” “value of time,” “access to more information,” and “several payment options.” Results show that all drivers, except for “competitive price,” are closely interlinked to each other, such that initiatives must be simultaneously developed to address these drivers under resource constraints.