Deciphering Online Consumer Behaviour: Uncovering Factors Affecting Purchase Intentions for Electronic Items in Sri Lanka Using Ordered Probit Model

Abstract

This study identifies key determinants of Sri Lankan consumers’ online purchase intention for electronic goods and quantifies their impact using an ordered probit regression model. The findings reveal that a 1% increase in online reviews is associated with a 0.33 percentage point increase in high purchase intention, while trust and word-of-mouth similarly exert strong positive effects (0.30 and 0.21 percentage points, respectively). Notable, delivery terms, although significant, play a lesser role compared to online reputation factors. These insights offer strategic implementation for e-commerce businesses, emphasizing the need for enhanced consumer trust mechanisms, proactive reputation management and optimized delivery strategies. Policy can leverage these findings to develop consumer protection frameworks that ensure reliability in online transactions, fostering long-term e-commerce growth in emerging markets.