Risk Factors Affecting Online Lingerie Purchase Intention of Sri Lankan Millennials

Abstract

Online shopping has shown tremendous growth in Sri Lanka in the recent past and particularly in the clothing retail front. This growth is largely been contributed by internet and mobile penetration and due to the tech savvy population who daily engages with internet activities. However, the lingerie retailers in Sri Lanka still struggle in their growth expectations, compared to other categories in clothing. Hence this study focuses specifically on risk factors affecting for online lingerie purchase intention of Sri Lankan millennials. Prime objective of the research was to find out what are the specific risk factors which would affect the online lingerie purchase intention of millennials. Quantitative study was conducted to determine what risk factors are having an impact on the lingerie purchase intention of Sri Lankan millennials. Online questionnaire was circulated and 300 responses were received and used for the data analysis. In addition, a qualitative research was done by conducting semi structured interviews with three online lingerie retailers, with the aim of supporting the findings of quantitative research. First objective of the research was to find out through literature review what are the risk factors found in the past research for online lingerie purchase intention. Secondly research aimed at find out the most effective risk factors for online lingerie purchase intention from a Sri Lankan perspective. Third objective was to determine how individually and collectively these factors impacted on online lingerie purchase intention of Sri Lankan millennials. As the fourth objective, study aimed at providing background support to the findings of first three objectives by conducting interviews and investigating the risk factors from an industry professional’s perspective. This study used an element of “conceptual model of trust on online environment” as the basis to develop the conceptual framework to test the relationship between selected perceived risk factors towards online purchase intention. It was identified through the research; performance risk and financial risk has a major influence and delivery risk and privacy risk has a minor influence on online lingerie purchase intention of Sri Lankan millennials. Based on the findings, as the final objective of the study, recommendations and suggestions were made to the online lingerie retailers for risk mitigation processes and new techniques to be adopted to the current marketing strategies, which will encourage the Sri Lankan millennials to purchase lingerie online and the retailers to optimize sales. Some notable recommendations were to improve the brand loyalty, word of mouth, money back guarantee, and payment security strategies by adopting new techniques in those areas. In addition to the above, research has suggested directions for future researchers based on the limitations and challenges encountered.