Introduction
Over the past few years, online shopping has experienced significant growth due to increased consumer demand and a wider range of available products. Despite its growth, online sales face several barriers to further development. These sales are primarily concentrated in specific product categories like clothing, music, and electronics, and vary significantly between countries. Millennials, who are the first generation to grow up with internet technologies, are the primary demographic engaging in online shopping. However, there are differences in defining the term “Millennials,” ranging from those born between 1982 and 1996 to a wider span from 1980 to 2000.
The adoption of e-business has transformed consumers’ decision-making processes, allowing for easy product comparison, price checking, information gathering, and quick purchases. Yet, online shopping also presents risks such as product quality issues, delivery delays, and security concerns. Consequently, traditional patterns of purchasing behavior do not always apply to online shopping. While e-business adoption enhances company competitiveness and reduces operating costs, understanding consumers’ motives and barriers in online shopping is crucial for effective marketing strategies and e-commerce growth.
Despite high internet penetration in Montenegro, most consumers still prefer traditional shopping methods, with a significant portion never having engaged in online shopping. This lack of engagement is partly due to a dearth of data on Montenegrin companies selling products online and limited research on e-commerce development at the state level. However, transitioning to e-business could benefit domestic companies by reducing costs, enhancing consumer loyalty, and leveraging online marketing strategies.
Previous research has identified various factors influencing online shopping behavior, including demographic characteristics, motives, and barriers. However, findings have been inconsistent, necessitating further examination at the local market level. Additionally, while peer influence, social communication, and free shipping positively impact consumer trust and satisfaction, their effects on consumers in underdeveloped e-commerce markets like Montenegro remain unexplored.
This study aims to fill these gaps by analyzing Millennials’ perceptions and determinants of online shopping behavior in Montenegro. It seeks to measure the relative impact of factors affecting online shopping behavior and explore demographic differences among Millennials in terms of frequency, expenditure, product preferences, and website usage. Understanding Millennials’ behavior is crucial for shaping effective e-business strategies and overcoming barriers to online shopping adoption among other consumer groups.
The paper is structured into five sections, covering the introduction, literature review, methodology, results, and conclusions, along with implications and recommendations for future research.
Theoretical Background
Studies on consumer motivations for online shopping date back several decades, identifying two main types of internet shoppers: problem solvers and those seeking entertainment and stimulation. Problem solvers use online shopping for specific needs, while others engage for pleasure and entertainment.
Materials and Methods
A pilot survey involving 27 respondents and a focus group of 5 experts was conducted to validate the questionnaire. Feedback from the pilot study informed the final questionnaire, consisting of 24 questions across 5 categories, including demographics and internet usage.
Research Model Estimation Using SEM Analysis
Structural Equation Modeling (SEM) was employed to analyze the influence of demographic characteristics, affirmative online shopping traits, and risks and barriers on Millennials’ behavior and satisfaction with online shopping.
Conclusions
E-commerce offers significant benefits for both companies and consumers. This study identified Millennials in Montenegro recognizing the benefits of online shopping while perceiving it as risky, indicating the need to address perceived barriers and disadvantages.
