Independent University, Bangladesh

Ragib Ishrak Prithibi

ID 1821928

Course ID: INB 405

Section: 01
Semester: Summer 2021

Submitted To: Mr. Arifur Rahman Khan

Online Shopping Behavior among Generation Z during COVID-19.

1.0 Introduction  

 Online shopping behavior (2 to 3 lines)

Online shopping behavior refers to an individual's overall view and assessment of a product or
service while buying online, which can be negative or positive. Previous research has established
that behavior is a multi-dimensional construct that may be understood in a variety of ways (Li &
Zhang, 2002)

 Importance of online shopping during COVID-19 (5 to 10 lines)

Purchasing online offers a number of advantages, particularly during the COVID-19 epidemic,
when in-person shopping is limited or difficult. It has never been easier to buy travel tickets,
food, home items, or workplace supplies than it is right now. Online businesses may also be
extremely competitive in terms of prices and items, giving customers a variety of choices that
brick-and-mortar stores may not. Aside from the convenience of buying from the comfort of
your own home, or indeed from anywhere, there are several advantages to shopping online.
Avoiding parking difficulties, long lines, and avoiding crowds over the Eid festival are just a few
of the benefits. The epidemic has hastened the transition to a more digital environment and
prompted changes in online purchasing habits that are likely to have long-term consequences.

 Importance of understanding online shopping behavior among gen Z (5 to10 lines)

Let’s first understand what is gen Z and what is its full form. Gen Z is short for Generation Z, they
are also known as zoomers. Zen Z follows the millennial and refers to the generation born
between 1997 and 2012. This generation grew up with the internet and social media, with some
of the oldest graduating from college and joining the job by 2020. Gen Z was raised on
technology, the internet, and social media, which has led to stereotypes of them as tech-addicts,
anti-social, or "social justice warriors."
During the pandemic Gen Z influenced all the other generation to shop online and taught their
elders, family members etc. how to shop online using e-commerce website.
According to the website insiderintelligence.com by 2026, Generation Z will have become the
most influential generation in the retail industry, with many of them having enormous
purchasing power. Retailers and brands must begin building relationships with Gen Z customers
today in order to get a piece of this rapidly increasing group.
2.0 Literature Review

 Online shopping behavior (5 to 10 lines)

With the fast growth of e-business, one of the primary research goals in both Marketing
Sciences and Information Systems has been the study of online shopping behavior. Trade and
commerce have become so diverse in the twenty-first century that multichannel has emerged,
and internet shopping has grown considerably throughout the world (Johnson, Gustafsson,
Andreassen, Lervik, & Cha, 2001). Due to double-digit worldwide growth in sales (15%) and
orders (13%) (eMarketer, 2018) in all types of e-commerce, such as business-to-business (B2B),
business-to-consumer (B2C), and business-to-government (B2G), e-commerce accounted for
about 2.29 trillion dollars globally (John, 2018) and was expected to reach four trillion USD by
2020 (eMarketer, 2016). Consumer views regarding internet purchasing are often influenced by
two factors: trust and perceived advantages (Hoque, Ali, & Mahfuz, 2015). As a result, customer
behavior toward online buying appears to be driven by trust and perceived rewards (Al-Debei,
Akroush, & Ashouri, 2015; Hajli, 2014). Also, demographic factors such as age, gender, and
income level have an enabling role since they impact customer perception and behavior, which
leads to online buying. As a result, e-retailers should stress a more user-friendly function to give
utilitarian clients with an expedient approach to discover what they need. (Delafrooz, 2009)
discovered that among Zen-Z students, the degree of online buying intention was quite high,
and the direction of attitude toward online shopping was favorable.
 Theoretical background and hypotheses development 

The Influences of Consumption Values on Online Shopping Behavior among Generation Z during
COVID-19 (Paraphrase the following red color content)

Values are defined as one’s judgments about what is important in life. Values tell people what is
good, beneficial, important, useful, beautiful, desirable, or appropriate. They answer the question of
why people do what they do. Values help people solve common human problems for survival. The
definition of a value was originally provided by Rokeach (1973) who described it as an enduring
belief that a specific mode of conduct or end-state existence is personally or socially preferable to
an opposite or converse mode of conduct or end-state of existence. According to Schwartz (1992),
values are the guiding principles in one’s life from a more abstract standpoint, and they affect one’s
views on many issues. In terms of social adaptation theory (Grant& Walker, 2015), values are a type
of social cognition that functions to facilitate adaptation to one’s environment.

Consumption values refer to subjective beliefs about desirable ways to attain personal values by
consuming items. People achieve personal values (or goals) through actions or activities, such as
social interaction, economic exchange, possession, and consumption (Moore et al., 2013). Sheth et
al. (1991) conceptualized a model to help comprehend how consumers make decisions in the
marketplace. They based their model on the principle that the choices consumers make are based
on their perceived values in relation to what the authors called “market choice,” and that the
perceived values contribute distinctively to specific choices. Because their model examines what the
product values are that attract consumers, it can be viewed as a way to understand the attitude
toward the product, making this a proactive way to understand product acceptance and adoption.
Consumers attach different values to products and product groups and this affects their motivation
to purchase. These values include the following: functional value, social value, emotional value,
epistemic value, and conditional value.

All consumption values influence consumers’ purchase behavior. People seek to satisfy their needs
and desires with modern possessions and view themselves as modern consumers because different
consumption values have been fulfilled. A decision may be influenced by any or all of the five
consumption values. Various disciplines (including economics, sociology, several branches of
psychology, and marketing and consumer behavior) have contributed theory and research relevant
to these values (Sheth, Newman, Gross, 1991).

Schwartz (1992) defines value as “a desirable trans-situational goal varying in importance, which
serves as a guiding principle in the life of a person or other social entity”. In other words, values are
fundamental orientations or guiding principleswhich serve as the basis for organizing an individual's
beliefs and attitudes, and guide to individual behavior (Jagers& Matti, 2010; Schwartz, 2012).

Individuals’ care about the natural environment reflects their values and has an effect on their
behavior (Soyez, 2012). Wang et al., (2013) mentioned value is considered as an important make-up
of relationship marketing. Customer value is the fundamental basis for all marketing activity as
mentioned by Plewa and Conduit, (2016)where “Marketing involves exchanges; exchanges depend
on customers’ value which is also the fundamental basis for all marketing activities” (Wang et al.,
2013).Nowadays, consumers’ purchases are mostly due to the perceived corporate,social and
environmental value rather than the superior economic value that they get from the firm purveying
a product, service or brand(Huang et al., 2014). Hence customers are value driven (Sweeny &
Soutar, 2001),then it is important for marketers to understand thecustomer-perceived value and
focus their attention onachieving market advantages(Shanker, 2012; Mackevičiūtė& Škudienė,
2013).

Perceived value can be defined as an overall evaluation of benefit a consumer receives from a
product or service based on the consumers’ review (Chi et al., 2011; Yusuf et al., 2013; Lai et al.,
2014).Green perceived value can be defined as “a consumer’s overall appraisal of the net benefit of
a product or service between what is received and what is given based on the consumer’s
environmental desires, upholding judgements and needs to make a product environmentally-
friendly” (Rizwan et al., 2013; Akbar et al., 2014).Perceived value is more important in today’s
society as companies can enhance consumer purchase intentions through product value (Steencamp
& Geyskens,2006; Karatu & Mat, 2015; Doszhanov& Ahmad, 2015).Product value can be seen in
product characteristics, product benefit and how prominent a product is. According to Chen &
Chang (2012), green perceived value positively affects green purchase intentions.Researchers have
widely identified the significant relationship between perceived value and green purchase intention
(Chen & Chang, 2012; Kong et al., 2014; Delghanan & Bakhshandeh, 2014; Liang & Chaipoopirutana,
2014; Rajput et al., 2014).

People seek to satisfy their needs and desires with modern possessions and view themselves as
modern consumers because different consumption values have been fulfilled. A decision may be
influenced by any or all of the five consumption values. Various disciplines (including economics,
sociology, several branches of psychology, and marketing and consumer behavior) have contributed
theory and research relevant to these values (Shethet al., 1991)
 Paraphrased content from above
Values are described as one's assessments of what matters most in life. What is excellent, helpful,
significant, useful, attractive, desirable, or suitable is determined by values. They provide a solution to
the issue of why individuals behave the way they do. Values assist individuals in resolving basic human
issues in order to survive. Rokeach (1973) defined value as a lasting conviction that one style of behavior
or end-state of life is individually or socially superior to the opposing or converse way of conduct or end-
state of existence. From a more abstract perspective, values, according to Schwartz (1992), are the
guiding principles in one's life, and they influence one's opinions on a variety of problems. According to
social adaptation theory (Grant& Walker, 2015), values are a kind of social cognition that helps people
adjust to their surroundings.

Subjective views regarding desired methods to achieve personal goals by consuming things are referred
to as consumption values. People acquire personal values (or objectives) via social contact, economic
transaction, ownership, and consumption, among other things (Moore et al., 2013). Sheth et al. (1991)
proposed a model to better understand how customers make purchasing choices. They built their model
on the idea that consumers' decisions are influenced by their perceived values in connection to what the
authors termed "market choice," and that these values contribute differently to different choices. Their
approach may be regarded as a method to understand the attitude toward the product since it analyzes
what product values attract customers, making it a proactive way to understand product acceptance and
adoption. Consumers place various values on goods and product categories, which influences their
purchasing motive. Functional value, social value, emotional value, epistemic value, and conditional
value are some of these values.

Consumer purchasing behavior is influenced by all-consuming values. People look for contemporary
goods to meet their wants and aspirations, and they consider themselves as modern consumers since
various consumption ideals have been met. Any or all of the five consumption metrics may impact a
choice. Various disciplines have contributed theory and research related to these ideals (including
economics, sociology, various areas of psychology, and marketing and consumer behavior) (Sheth,
Newman, Gross, 1991).

“A desirable trans-situational goal varying in importance, which serves as a guiding principle in the life of
a person or other social entity,” writes Schwartz (1992). In other words, values are guiding principles or
basic orientations that serve as the foundation for structuring a person's ideas and attitudes, as well as
directing individual action (Jagers& Matti, 2010; Schwartz, 2012). Individuals' concern for the
environment reflects their ideals and influences their conduct (Soyez, 2012).

According to Wang et al., (2013), value is an essential component of relationship marketing. According
to Plewa and Conduit (2016), customer value is the basic foundation for all marketing operations.
“Marketing includes exchanges; exchanges are dependent on customers' value, which is also the
essential foundation for all marketing activities” (Wang et al., 2013). Consumers nowadays make
purchases based on perceived corporate, social, and environmental worth rather than the better
economic value provided by the company selling a product, service, or brand (Huang et al., 2014). As a
result of consumers becoming value-driven (Sweeny & Soutar, 2001), it is critical for marketers to
identify customer-perceived value and concentrate their efforts on obtaining market advantages
(Shankar, 2012; Mackeviit & Kudien, 2013).

Perceived value is an overall assessment of the advantage a customer gets from a product or service
based on the customer's feedback (Chi et al., 2011; Yusuf et al., 2013; Lai et al., 2014).Green perceived
value is described as "a consumer's overall assessment of the net benefit of a product or service
between what is received and what is provided based on the consumer's environmental wants, ethical
judgments and requirements to make a product environmentally friendly" (Rizwan et al., 2013; Akbar et
al., 2014).In today's culture, perceived value is increasingly essential since businesses may increase
customer buy intentions by improving product value (Steencamp & Geyskens,2006; Karatu & Mat, 2015;
Doszhanov & Ahmad, 2015).Product value may be observed in product features, benefits, and the
prominence of a product. Green perceived value, according to Chen & Chang (2012), has a favorable
impact on green purchasing intentions. The strong connection between perceived value and green
purchasing intention has been extensively recognized by researchers (Chen & Chang, 2012; Kong et al.,
2014; Delghanan & Bakhshandeh, 2014; Liang & Chaipoopirutana, 2014; Rajput et al., 2014).

People look for contemporary goods to meet their wants and aspirations, and they consider themselves
as modern consumers since various consumption ideals have been met. Any or all of the five
consumption metrics may impact a choice. Various disciplines have contributed theory and research
related to these ideals (including economics, sociology, and various areas of psychology, and marketing
and consumer behavior) (Shethet al., 1991)

Online Shopping Behavior among Generation Z during COVID-19 (20 to 30 lines)

Because of its ease of use, the availability of products and services 24 hours a day, and the large range of
products available on the internet, online shopping is growing increasingly popular. During Covid-19,
online purchases rose, which had a similar impact on students especially Generation Z' online shopping
intentions. This is mostly due to limitations, as well as the epidemic and the public's view of online
businesses' response to it. This study cannot infer that increased impulsivity is attributable to Covid-19,
which contradicts current and new evidence that shows impulsive shopping increases during times of
crisis. Generation Z students, on the other hand, are more likely to save money and shop online
strategically.

External and internal driving forces influence online buy intent, and it was discovered that online
purchasing grew significantly in Generation Z students during Covid-19, impacting their online purchase
intent as well.
Many Zen Z students have switched to online purchasing rather than in-store shopping, owing to
government advice and limitations about Covid-19 in order to be safe amid the worldwide crisis.
In contrast to current and recent literature that suggests that crises trigger impulsive consumption (Eger
et al., 2021; Li et al., 2020), greater impulsiveness was not observed in the students. According to
Generation Z traits, students carefully examine their online purchases before making a purchase. Even
more than before the epidemic, the students placed a high value on their online safety and were acutely
aware of their unique expectations on features supplied by online merchants in order to make an online
purchase. Although Covid-19 provided students with additional free time, which they used to shop
online at various merchants, the concern of financial scarcity pushed them to save more money than
they had before the epidemic.
The pandemic's long-term consequences have yet to be determined. Nonetheless, many diverse
adaptations and changes in society can be seen all across the world. The demand for home delivery of
food, groceries, and healthcare has grown, according to Roggeveen and Sethuraman (2020). At the same
time, merchants' inventory and supply chain management issues have worsened. According to
Roggeveen and Sethuraman (2020), the most frequent mode of payment in the past was cash rather
than e-payment. However, as the pandemic has boosted online shopping, so has the usage of credit
cards and other forms of electronic payment. Simultaneously, the internet sale of counterfeit goods and
the theft of identities has risen.

We can see Gen X has the highest percentage of population right now, this info was taken from
martech.org.
Functional Value and online shopping behavior among generation Z during COVID-19

Functional Value: (4 to 5 lines)

Functional value is the value derived from an alternative's ability to perform functionally, utilitarian, or
physically. Functional value, according to Long and Schiffman (2000), is based on the product or service's
inherent worth rather than any extrinsic value. In terms of ease and speed, accepting and exchanging
offers is currently best done through online buying or purchasing. Scholars have highlighted that online
retailing is more convenient (Hsin Chang & Wang, 2011) and time efficient (Lee, Eze, & Ndubisi, 2011)
than traditional purchasing methods for getting a desired product or service. Customer desire to
purchase online is positively related to the perceived functional value of the internet especially for Gen Z
as they are the most active internet user and on this Covid - 19 pandemic we saw a surge in the
bandwidth usage of the internet.

Hence it is hypothesized that;

H1: Functional value positively influences online shopping behavior among generation Z
during COVID-19
Social Value and online shopping behavior among generation Z during COVID-19

Social Value: (4 to 5 lines)

An alternative link with a specified demographic, socioeconomic, cultural, or ethnic group gives rise to
social value (Sheth et al., 1991). Long and Schiffman (2000) predict that consumers who are motivated
by social value would make decisions based on the groups to which they belong, identify with, or desire
to join. Social value is typically a driving force behind decisions regarding highly visible products and
commodities or services intended to be shared with others. A specific brand of vehicle, for example,
may be chosen for its social image rather than its mechanical performance. Customer desire to purchase

online is positively related to the internets perceived social worth, especially among Generation Z.
When Gen Z were stuck at home due to the lockdown this social values made their life a bit easier and
more entertaining.

Hence it is hypothesized that;

H2: Social value positively influences online shopping behavior among generation Z
during COVID-19
Emotional Value and online shopping behavior among generation Z during COVID-19

Emotional Value: (4 to 5 lines)

The capacity of an alternative to excite an emotional or affective state provides emotional worth,
whereas the ability of an alternative to raise curiosity, offer novelty, and/or satisfy a need for
information provides epistemic value. Emotions are commonly connected with products and services
(e.g., the romance aroused by a candlelight dinner, the fear aroused while viewing a horror movie).
Aesthetic alternatives are frequently connected with emotional worth (e.g., religion, causes). When we
remove any rational financial behavior by the owner, emotional value reflects the emotional element of
desire to accept (Zellweger & Astrachan, 2008), which impacts a consumer's purchasing choice (Mohd
Suki & Mohd Suki, 2015).According to the other article that has been published by Elodie Gentina
named “Generation Z in Asia: A Research Agenda” we see Gen Z is one of the most emotional
generation out there. Being emotional and being stuck in home due to pandemic is a huge bummer for
the Gen Z but thanks to emotional values they can take the full advantage.

Hence it is hypothesized that;

H3: Emotional value positively influences online shopping behavior among generation Z
during COVID-19
Epistemic Value and online shopping behavior among generation Z during COVID-19

Epistemic Value: (4 to 5 lines)

First let us know what does epistemic value means? The value derived from an option's ability to spark
curiosity, give novelty, and/or fulfill a need for knowledge. Questionnaire elements related to curiosity,
novelty, and knowledge give an alternative epistemic value. Consumers now have the purchasing power
to choose which brand's product they will purchase, thanks to the wide range of items accessible on the
market. Customers may select another new product because they are tired with the previous brand or
just to fulfill a need for diversity as a result of this luxury. Because of this, customer loyalty is difficult to
sustain. As a result, in the context of online buying, epistemic value can influence both purchase
intention and switching behavior.

Hence it is hypothesized that;

H4: Epistemic value positively influences online shopping behavior among generation Z
during COVID-19
Conditional Value and online shopping behavior among generation Z during COVID-19

Conditional Value: (4 to 5 lines)

A purchase decision's conditional value is derived from a specific scenario or environment (Long &
Schiffman, 2000). A set of choice contingencies is used to quantify conditional value. Situational
contingencies that contribute to temporary functional and social benefit are referred to as conditional
value (Pope, 1998). This circumstance may have an impact on a customer's decision-making process.
Income, a stock-out scenario, fashion, and other factors might influence a customer's purchase decision.
The usefulness of an option is frequently contingent on the circumstances. Some items, for example, are
only used during the holiday season (e.g., Christmas cards), while others are linked with “once in a
lifetime” occasions (e.g., a wedding gown), and yet others are only utilized in emergency situations (e.g.,
ambulance service). During the pandemic Generation Z got to do all this.

Hence it is hypothesized that;

H5: Conditional value positively influences online shopping behavior among generation
Z during COVID-19
REFERENCES
Article on online Shopping Motives during the COVID-19 Pandemic—Lessons from the Crisis Julia Koch
*by Britta Frommeyer and Gerhard Schewe

Online shopping behavior article by author Hashim Shahzad

https://www.diva-portal.org/smash/get/diva2:853275/FULLTEXT01.pdf

https://unctad.org/news/covid-19-has-changed-online-shopping-forever-survey

https://www.insiderintelligence.com/insights/generation-z-facts/

https://www.tandfonline.com/doi/full/10.1080/23311975.2018.1514940

https://www2.bartleby.com/essay/Literature-Review-On-Online-Buying-Behavior-

https://www.diva-portal.org/smash/get/diva2:853275/FULLTEXT01.pdf

https://www.diva-portal.org/smash/get/diva2:1559844/FULLTEXT01.pdf

https://www.mytotalretail.com/article/how-gen-z-and-millennials-are-influencing-the-future-of-
shopping/

https://martech.org/move-millennials-gen-z-now-largest-single-population-segment/

https://www.jagsheth.com/consumer-behavior/why-we-buy-what-we-buy-a-theory-of-consumption-
values/