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Original Article | Open Access | Can. J. Bus. Inf. Stud., 2023; 5(4), 81-91 | doi: 10.34104/cjbis.023.081091

The Impact of Covid-19 (Coronavirus) on Consumers Behavior towards E-commerce

Md. Tuhinur Rahman ,
Muhammad Abdus Salam* Mail Img

Abstract

The Covid-19 pandemic has disrupted peoples usual lifestyles, and this infectious disease has had a significant and pervasive impact on all facets of human existence. This study investigates how consumers shopping behaviors have been influenced by the pandemic and how they are utilizing e-commerce to adapt and cope with the challenging circumstances caused by the Covid-19 situation. A conceptual framework and hypotheses have been developed based on the analysis of existing literature and several uniform methods to fulfill the research objectives. The study conducted several statistical analyses, like Confirmatory Factor Analysis (CFA), Cronbachs alpha (CA), composite reliability (CR), average variance extracted (AVE), heterotrait-monotrait (HTMT) ratio, and regression analysis. The result indicates that the pandemic situation influences consumers to use e-commerce to avoid unfavorable situations. As a result, economic benefits have been optimized due to the adoption of e-commerce during the pandemic situation. 

INTRODUCTION

The Covid-19 pandemic has had a widespread impact on various facets of human existence, encompassing personal and professional lives, health considerations, shopping behaviors, businesses, and even the allocation of daily time by the customers (Salam et al., 2022). It has caused the significant changes in almost every aspect of societies around the globe. From daily lifestyle to daily commercial activities, the pandemic left no aspect of society untouched. With its sudden and highly spreading nature has made a disruptive influence on various industries around the world. Among those industries, the world saw a profound transformation in the e-commerce sector. As almost all the countries around the world imposed lockdowns and limited human movements, people mostly relied on the online platform of businesses for purchasing their necessary things. This transformation in this sector has reshaped the landscape of e-commerce businesses and consumers purchasing behavior.  

Furthermore, it has resulted in substantial changes in online commerce that will have an impact on individuals, organizations, communities, and nations (Salam et al., 2021). The necessity of e-commerce in the daily routines of numerous consumers is undeniable, as evidenced by the remarkable surge in both purchase frequency and expenditure in recent years. Several researches have shown that, during the Covid-19 pandemic situation, online shopping through F-Commerce and e-commerce has increased and this pandemic is somehow redesigning shoppers shopping behavior (Koirala et al., 2021). (Luo et al., 2023) conducted a research in California and they have found that, the COVID-19 pandemic has expedited the expansion of e-commerce and brought about changes in shopping behaviors, consequently influencing the number of trips made and the distance traveled by vehicles. Several studies have been conducted based on the COVID-19 situation and its impact on e-commerce in various aspects (Borges et al., 2023; Gao et al., 2023; Han et al., 2022; Pejić Bach, 2021). However, most of the previous research mostly focused on the situation of developed countries where the infrastructure for conducting e-commerce activities is well developed. But in the case of developing countries where the required infrastructure of online businesses are not well developed and people find it difficult to conduct transactions through e-commerce, consumers may not fully rely on e-commerce for purchasing their necessary things. There could be many issues like internet access, smartphones, computers, and payment gateways which may disrupt consumers behavioral intention to make transactions through e-commerce. Moreover, people may not fully trust the quality of products offered in the e-commerce businesses. From this perspective, this study aims to examine the impact of Covid-19 pandemic on consumers behavior towards e-commerce considering the situation of a developing country. This leads to the research question: how does Covid-19 pandemic affect consumers behavior toward e-commerce leading to economic benefit? 

To address the research question, this study aims to explore the consumers behavioral trends and patterns during a pandemic period. Moreover, the study plans to explore the consumers shopping habits during the pandemic situation and how consumers are using e-commerce to adapt and endure such traumatic life events as the Covid-19 situation. More specifically, the study aims to discover how pandemic fear, consumers buying behavior, and intention to use e-commerce influence one another. It will also make a diagnosis of how this correlation affects economic benefits during such an environmentally imposed epidemic situation.

Literature Review

Intention to Use

Intention means how individuals or consumers are approaching subjective values or norms, behavior (consumers might be optimistic or pessimistic), and perceived behavioral control (Ajzen, 1991; Armitage & Conner, 2001; Godin & Kok, 1996). Intention refers to consumers perception of a specific matter, which denotes the customers appraisal of the prospect or perceived chance of performing a given behavior. According to (McEachan et al., 2016) intention is considered a motivational factor that stimulates consumers to be involved in a certain and specific behavior. However, the Intention is widely being used to measure consumers behavioral perception through a wide range of buying behavior, including traditional shopping and sustainable consumption, as well as social commerce and E-commerce (Aitken et al., 2020a; Hajli, 2013). In this study, intention to use measures customers perceptions and the behavioral approaches towards E-commerce during Covid-19 pandemic situation. Although there could be many drawbacks and difficulties in making transactions through e-commerce in developing countries, limited movements and lockdowns somehow force people to stay at home and choose e-commerce for purchasing their required things. This purchasing intention of people could increase the economic benefit and affect the behavior of people. This leads to:

H1. Intention to use has a positive influence on economic benefit.

H6. Intention to use has a positive influence on perceived behavioral control.

Pandemic Fear

A pandemic is a proliferation of a malady that attacked a huge number of people and ensued in a wide range of territory. (Intermountain Healthcare Organozation, 2020) identifies a pandemic as an epidemic that spreads over several parts of the world. According to (World Health Organization, 2010) if any new malady diffused globally is identified as a pandemic and at the same time the human body contains a lack of immunity to resist the disease. (The United Nations, 2020) announces that the Covid-19 pandemic is the most destructive disaster in the world during the last century. Worldwide, as of 13 March 2021, almost 118,754,336 people were affected by the coronavirus and 2,634,370 people died (World Health Organization, 2021). Peoples angst had been amplified by COVID-19 pandemic situation and its effects on shoppers buying trends (Leung et al., 2021). Pandemic fear is the fear of customers about getting infected by the disease and this concern turns into a remarkable matter to know how pandemic fear affects customers buying behavior (Khan & Huremović, 2019; Tran, 2021). The literature review shows that shoppers buying trends and behavior could be changed because of the negative influence of an explicit affair (Solomon & Kumar, 2020). Because of the Covid-19 pandemic, fear of buyers panic buying has increased and shopping trends have changed (Mehta et al., 2020). Based on this literature it is quoted that a buyers pandemic fear means being anxious about the pandemic situation which impacts the E-commerce buyers buying behavior. This leads to:

H2. Pandemic fear has a positive influence on economic benefits.

H4. Pandemic fear has a positive influence on the intention to use.

H5. Pandemic fear has a positive influence on perceived behavioral control.

Perceived Behavioral Control 

Perceived behavioral control is derived from multiple sources, such as an individuals competence in performing a behavior and their capacity to effectively manage factors that either hinder or support that behavior (Ajzen, 2002a). The perceived control an individual has over a behavior can be determined by both external and internal factors (Kidwell & Jewell, 2003). The theory of planned behavior, which includes the constructs such as perceived behavioral control, attitude, subjective norms, and behavioral intention, is a deep-rooted framework that has been utilized to understand changes in behavior across a variety of domains such as information technology, health, and environmentalism, along with others (Ho et al., 2020, 2022). So, this behavioral control of people may influence the economic benefits of e-commerce businesses. This leads to:

H3. Perceived behavioral control has a positive influence on economic benefit.

Economic Benefit

Economic Benefit refers to any benefit or advantage that can be deliberate or articulated in economic and pecuniary terms. Previous literature shows that the economic driver has a significant influence on consumers decision also several literature shows that that economic factors can have both favorable and unfavorable impacts on consumers decision-making processes (Bock et al., 2005; Dabbous & Tarhini, 2019; Kankanhalli et al., 2005). Subsequent studies have discovered that economic benefits have a greater influence than other factors such as attitude and trust (Hamari et al., 2016; Möhlmann, 2015). Based on the literature and hypothesized relationship, this study develops the following research model (Fig. 1). 

METHODOLOGY

Instrument Development

We develop a survey instrument using pre-existing items.  The items were adjusted for the context of this study. The following table (Table 1) shows the corresponding items of each construct. Pre-test and pilot study

The study conducted a pre-test among 6 doctoral students and two professors in the field of information systems for making the measurement items more understandable and meaningful. Based on the suggestions and feedback from the pre-test phase, the study modified the measurement items and prepared the final questionnaire. A final structured questionnaire was produced primarily in English and then translated into the Bangla (the respondents native language). The questionnaire was also back translated into English from Bangla to examine whether the intended meaning of the questionnaire remains the same or not. We got the similar meaning through translation and back translation. This was done in order to convey the intended meaning of the questions to the respon-dents. The questionnaire was divided into two sections: section A, which contained demographic information on the respondents, and section B, which contained measurement items. The study uses a 5-point Likert scale (1 being strongly disagree and 5 being strongly agreed) for measuring the various items in the questionnaire. The study conducted a pilot study among a small sample size (20 res-pondents) that is similar to the actual respondents we are going to employ for full study. They made some corrections to the measurement items based on the pilot study and finally prepared a questionnaire for the final study. 

Sampling and Data Collection 

The data collection process took place in Dhaka City, the capital of Bangladesh, for 5 weeks (between the October 2021 and the November 2021). People essentially continue to migrate to Dhaka, the most favored city in the nation, in order to find work which makes the city diverse in terms of culture, standard of living, money, technological prowess, education, and occupation. Dhaka has been chosen as the sampling location for our study due to the chance to collect a range of responses and experiences from users belonging to the different sections of the country. People who have experience using at least one of the e-commerce platforms during the Covid pandemic are chosen as our population. Although people who have not used e-commerce platforms but intended to use them is influenced by others or by the positive perception regarding e-commerce sites are also taken into consideration as our study population. According to (Roscoe, 1975), the sample size for multivariate research should be at least ten times as large as the number of measurement items of the study.  However, 197 data in total were gathered for further statistical analysis.  

Data Analysis

The study removed 33 unengaged data from a total of 197 respondents and rest of the 164 data was given input into SPSS for analyzing demographic data, validating the measurement model using Cronbachs Alpha (CA), Composite Reliability (CR), Average Variance Extracted (AVE), and Heterotrait-Monotrait ratio and consequently for testing the hypothesized relationships among constructs using regression analysis. 

RESULTS

Demographic Data Analysis

From the respondents demographic data, presented in Table 2, it can be seen that most of the participants are male (62%). Among the respondents maximum e-commerce users are from the 20–35-year age group (61%) indicating the impulse of youth in using e-commerce platforms. Maximum numbers of respondents are respectively at graduation, and college or below level justifying the age groups preference for e-commerce platforms. People using or intended to use e-commerce sites are essentially city dwellers. Then again, users are respectively maximum service holders (32%), students (29%), and Business persons (18%) indicating that hustle and bustle of professional and personal life are the main reasons behind choosing e-commerce sites anytime especially amid pandemic like covid 19. Moreover, people with stable monthly income prefer e-commerce sites for shopping.  Mix responses were found while asking the purposes of using the e-commerce sites. They replied with the use of e-commerce sites for groceries and daily needs (10%), apparel and fashion (27%), readymade food (19%), electronic appliances (17%), and health and beauty care (11%). All the demographic data justifies the usage of e-commerce platforms for easy, convenient, and reliable advantages.

Measurement Validation

In order to analyze the measurement model, the study examined confirmatory factor analysis, internal reliability, convergent validity, and discriminant validity. According to (Hair et al., 1998), the standard cutoff for the factor loadings is 0.60. The following table (Table 3) shows that all constructs items have factor loading greater than 0.60. For assessing the constructs internal reliability, the Cronbachs alpha (CA) value and composite reliability (CR) were taken into consideration. A value of 0.70 for CA and CR is regarded as satisfactory (Hair et al., 2006). Additionally, item loadings and average variance extracted (AVE), where a value of not less than 0.50 can be accepted, were taken into consideration for evaluating the convergent validity (Hair et al., 2014). Table 3 shows the values of the loadings CA, CR, and AVE. All of the CA and CR values are higher than 0.70, showing the constructs have a high level of internal reliability. Additionally, all of the values for AVE were greater than their suggested values. Consequently, the model met the convergent validity. 

The Heterotrait-Monotrait ratio of correlations (HTMT) criteria, where the acceptable value is less than 0.90 (Henseler et al., 2015), was used to test discriminant validity. Since none of the values are greater than 0.90, presented in Table 4, the model also satisfies the criteria for discriminant validity. Hypothesis Testing

Based on the regression analysis data represented in Table 5, it can be observed that the p values are significant (less than 0.05) respectively for hypothesized relationships PF and IU, IU and PBC, and IU and the EB. Therefore, we have to accept the hypothesized relationship H1, H4, and H6. On the contrary, hypothesized relationships H2, H3, and H5 are rejected. It means pandemic fear has a positive influence on the intention of using e-commerce platforms for shopping. On the other hand, intention of using e-commerce is found positively influencing both the perceived behavioral control and the economic benefit.

DISCUSSION

This study covers the contemporary and practical implication-based domains, exclusively in the naturally enforced pandemic situation like Coronavirus (Covid-19). Because of the pandemic, almost all the countries went into lockdown and limited the movements of people. These restrictions made people sit in their house and relied more on online versions of making transactions and purchasing. Customers were dependent on e-commerce for purchasing their necessary things from the daily requirements to some luxury items. There were many factors which were forcing customers to rely on e-commerce including intention to use, pandemic fear, and perceived behavioral control. Because of this reliance on e-commerce, economic benefits were increasing. This study investigated the issue of the impact of Covid-19 on consumers behavior towards e-commerce. The study also examined how consumers behavior leads to economic benefits. The study hypothesized six relationships based on the extant literature. Among those six, three of them turned out to be statistically significant. The study finds that H1 which is intended to use has a positive influence on economic benefit is statistically significant. The reason behind this relationship is that consumers behavioral intentions lead them to make purchases through e-commerce and increasing their purchase also increases economic benefits. As pandemic made the worldwide economy slower, increasing transactions and purchasing through e-commerce creates a shift to the increased economic benefits. 

The study also finds that H4 which is pandemic fear has a positive influence on the intention to use is statistically significant. The reason for this significant relationship is that because of pandemic fear customers were bound to stay inside of their resi-dence and used e-commerce sites for purchasing their daily necessities. Moreover, because of lock-down in countries, the intention of customers to use ecommerce sites has increased (Uddin, 2021).  

Furthermore, the findings of the study shows that H6 which is the intention to use has a positive influence on perceived behavioral control is statistically significant. This is because consumers behavior towards e-commerce usage mostly depends on the intention of the consumers to make purchases through e-commerce sites. Even if there is no situation like a pandemic, consumers intention to use e-commerce sites for making purchases will influence the behavior of the consumers. However, although the study did not find significant relationships for H2, H3, path coefficient shows that the relationships are supported in the right direction of hypotheses. H5 has a negative path coefficient and its not statistically significant. 

Implication 

The study concentrated on the impact of Covid-19 on consumers behavior towards e-commerce and found several of the hypothesized relationships statistically significant. Theoretically, the study contributes several insights. First, the finding of this study adds a significant portion of knowledge into the literature of consumers behavior and the e-commerce. Second, the findings of this study show that consumers usage of e-commerce significantly affects economic benefits. So, this study will draw further scholarly attention in the field e-commerce and how it affects economic benefits. Third, the study will provide an insight of how a specific incident like pandemic causes people to shift their way of doing things. 

The study also provides the several practical implications. First, it will be beneficial for stakeholders from the non-academic, especially for the E-commerce industry and entrepreneurs. Second, it will be helpful for government strategy and policy-makers, e-commerce associations, and e-commerce regulating authorities to get substantial compre-hension. 

Limitation and future research direction

The study has several limitations. First, the study is conducted using a sample size of only 164 respondents. Although the sample size is enough based on the number of the constructs and some researchers recommendations, in future researchers could think of increasing the number of sample sizes. Second, the study is conducted in a developing country where infrastructure required for e-commerce is not well established. So, in the future, researchers could think of the conducting study involving both developed and developing countries. Third, the data collection period considered in this study is five weeks which can be increased to observe more rigorous scenarios. 

In the future, researchers could think of increasing the data collection period. In future, researchers may consider investigating trend of buying behavior of consumers using e-commerce sites or online sites. Furthermore, researchers could incorporate some other constructs to examine the impact of economic benefits. 

CONCLUSION

In addition to its significant economic effects, the Covid-19 pandemic has also affected various other dimensions of human activity, including social, ecological, political, and behavioral aspects. Drawing upon the findings of the analysis and subsequent discussion, pandemic fear has a strong and positive influence on intention to use, which accelerates economic benefits. That means the pandemic situation influences consumers to use e-commerce to avoid any unfavorable situations. As a result, economic benefits have been optimized due to the adoption of e-commerce during the pandemic situation. Also, intention to use has a strong and positive correlation with the perceived behavioral control of the consumer.

ACKNOWLEDGEMENT

We would like to convey our gratitude and the appreciation to our advisers, teammates, and well-wishers who supported us in various ways.

CONFLICTS OF INTEREST

The author declares no conflict of interest.

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Article Info:

Academic Editor

Dr. Liiza Gie, Head of the Department, Human Resources Management, Cape Peninsula University of Technology, Cape Town, South Africa.

Received

May 5, 2023

Accepted

July 6, 2023

Published

July 13, 2023

Article DOI: 10.34104/cjbis.023.081091

Corresponding author

Muhammad Abdus Salam*
Department of Management Information Systems, Noakhali Science and Technology University, Noakhali, Bangladesh.

Cite this article

Rahman MT., and Salam MA. (2023). The impact of Covid-19 (Coronavirus) on consumers behavior towards e-commerce, Can. J. Bus. Inf. Stud., 5(4), 81-91. https://doi.org/10.34104/cjbis.023.081091

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