Factors affecting Customer Decision Making in Online Retail Clothing: An Exploratory Study

Abstract: Social media and networking sites not only connect communities of people online, but are also dynamic. Online sellers need a deep dive into Customer Decision Making (CDM) process. This study helps understand association between demographic variables and customer preferences, risk perceptions, and loyalty toward Social Media Marketing (SMM) in online retail clothing. Data are collected from 300 respondents in Bengaluru, India. Chi-square and Factor analysis were performed. Findings confirm few associations between demographic variables and various dimensions of customer preference, risk perception and loyalty in online shopping through the SMM and CDM process. The results reveal broad dimensions of preference of SMM for CDM: Experimental Uniqueness, Customer Service, and Convenience. Findings also highlight five factors from several dimensions of risk perception in SMM: Perceived Time Loss and Functional Risk, Perceived Risk of Performance and Privacy Risk, Perceived Psychological Risk, Perceived Physical Risk, and Perceived Social Risk. Findings assist managers to formulate marketing communication strategies in providing a positive customer experience. This research generates knowledge about customers, preferences, risk perception and loyalty towards online shopping, hence adds value to the literature on SMM. Keywords: SMM, Decision-Making, Customer Preference, Risk Perception, Customer Decision Making JEL Classification Number: M31