Investigating the Determinants of Online Shopping Repurchase Intention in Generation Z Customers in India: An Exploratory Study
Authors: Pal Abhimanyu , Pratap Singh Upendra , Kumar Ashish 
Published: November 2024

Aim/Purpose: This study investigates the factors that affect the repurchase intentions of Generation Z consumers in India’s online shopping industry, focusing on combining the Expectation-Confirmation Model (ECM) and Extended Technology Acceptance Model (E-TAM). The aim is to understand the intricate behaviors that shape technology adoption and sustained usage, which are essential for retaining customers in e-commerce.

Background: Social media and other online platforms have significantly influenced daily life and become essential communication tools owing to technological advancements. Online shopping is no exception, offering a range of product choices, information, and convenience compared with traditional commerce. Indian retailers recognize this trend as an opportunity to promote their brands through e-shopping platforms, leading to increased competition. Generation Z comprises 32% of the world’s population and is a significant emerging customer base in India. Numerous studies have been conducted to study customers’ repurchase intention in the online shopping domain, but few studies have explicitly focused on Generation Z as a customer base. This study aims to comprehensively understand the topic and investigate the variables that impact consumers’ online repurchase intention by examining their post-adoption behavioral processes.

Methodology: The study employed a quantitative research design with structural equation modeling using AMOS to analyze responses from 410 participants. This method thoroughly examined hypotheses regarding factors affecting repurchase intention (security, ease of use, privacy, and internet self-efficacy) and the mediating role of e-satisfaction.

Contribution: This study makes a unique contribution to the field of e-commerce by focusing on Generation Z in India, a rapidly growing demographic in the e-commerce industry. The results on the mediating role of e-satisfaction have significant implications for e-retailers seeking to enhance customer retention strategies and gain a competitive edge in the market.

Findings: The research findings underscore the significant influence of security, ease of use, and internet self-efficacy on repurchase intentions, with e-satisfaction playing a pivotal role as a mediating factor. Notably, while privacy concerns did not directly impact repurchase intentions, they displayed considerable influence when mediated by e-satisfaction, highlighting the intricate interplay between these variables in the context of online shopping, which is the unique finding of this study.

Recommendations for Practitioners: This study has several significant implications for practitioners. Effectively addressing computer-related individual differences, such as computer self-efficacy, is crucial for boosting online customers’ repurchase intention. For instance, if an e-retailer intends to target Generation Z customers, they should collaborate with IT professionals and develop various computer literacy programs on online streaming platforms, such as YouTube. These programs will enhance target customers’ confidence in online shopping portals and increase their online repeat purchases. Additionally, practitioners should strive to improve the online shopping experience by making the portal user-friendly. Generation Z is accustomed to a fast Internet experience, so they prefer that the process of completing online transactions is swift with fewer clicks. The search for products, payments, and redress should not be tedious. Furthermore, the primary objective of the e-retailer should be to satisfy customers, as satisfied customers repeat their purchases and increase overall profitability.

Recommendation for Researchers: The current study was conducted in the Delhi-NCR region of India, and its findings could serve as a basis for future research. For instance, the scale devised in this study could be utilized to examine the impact of cash-on-delivery as a payment method on purchase intention across the country. Alternatively, a comparative analysis could be conducted to compare cash-on-delivery effects in various countries.

Impact on Society: The study’s findings enable stakeholders in the online shopping industry to comprehend the post-adoption behavior of Generation Z users and augment existing literature by establishing a correlation between determinants that impact repurchase intention and e-satisfaction, which serves as a mediator.

Future Research: This study examines the factors that impact the propensity of Generation Z shoppers to engage in repeat online purchases. This study focuses on India, where the Generation Y (millennial) customer base is also substantial within the online shopping market. Future research could compare the shopping habits of Generation Z and Generation Y customers, as the latter may place greater importance on privacy and security. Additional studies could broaden the scope of this research and explore the comparative viewpoints of both generations. Also, it would be advantageous to conduct in-depth interviews and longitudinal studies to acquire a more in-depth comprehension of the evolving digitalization of shopping.