Age
Age simply measures one’s date of birth, yet strongly defines the specific behavior of people at different life stages. Psychologically, idiosyncrasies in the purchasing behavior of consumers are influenced by the physical and cognitive aging processes, as well as accumulated life experiences [53]. Each generational cohort varies by attitudes, preferences and values, which eventually shape buying patterns including preferred methods for shopping and buying [45, 46]. Accordingly, empirical evidence supports age as a significant factor in explaining an individual’s decision regarding the adoption of e-commerce [13, 37, 63].
Although most studies found that young consumers are the dominant users of e-commerce, in some countries like Israel [37] and Taiwan [63], a different pattern emerges. Yet, while older consumers today are using the internet more often than before, the younger generation has comparatively more active users making online purchases [25, 55].
Young people, especially those born after 2000, are considered the first high-tech generation [42]. They are more computer-literate and exposed to cutting-edge technological applications. Also, young consumers are very consumption-oriented and sophisticated when shopping [32]. They do not simply consider shopping as an act of buying things, but rather a decision that has to be made based on an evaluation of a set of information [18, 37]. Thus, many of them choose to adopt e-commerce because the information provided by the internet is broader and richer than what could be acquired in the physical stores.
On the other hand, older people prefer a traditional way of seeking information before proceeding with a purchase [24]. They still want to hear an explanation about the product or service from the salesperson rather than relying on a description displayed on the internet [26]. In fact, older consumers are not bothered by the limited information available in the store because they are considered experienced shoppers that are capable of making buying decisions with less knowledge about the products [10]. Lastly, older people resist using e-commerce because they have stronger risk avoidance tendencies than younger consumers [48].
Hypothesis 1:
E-commerce usage is more prevalent among younger customers.
Gender
Another important demographic factor that explains willingness to perform online purchases is gender. Indeed, men and women across cultures and nationalities have different thoughts on the adoption of e-commerce [55, 60]. Accordingly, empirical studies found that gender can distinguish several aspects of computer applications including e-commerce, such as level of acceptance [23, 25], perceived risk [19], and types of product purchased [52]. Yet, research has not yet reached a solid finding on whether men or women are more likely to do online shopping [9, 66]. The principle barrier that inhibits the effort is that most studies do not control for other related variables such as education and income level of the respondents. Thus, in a study where men are found to be more active users, it might not be because of gender, but because of their high income level, as men often earn more than women.
This research, though, predicts that gender plays a significant role in explaining e-commerce behavior, even after controlling for the confounding variables of employment status, education, and income level. In brief, we follow the argument of Zhou et al. [66] that the psycho-socio traits of men and women lie at different edges, thus shaping their attitudes toward online shopping. Females and males have different attitudinal and behavioral orientations that, while comprised in their genetic makeup, are more importantly derived from their social experiences [49]. First, the purchasing behavior of women is largely driven by emotional and social interaction, while men opt for convenience. Hence, e-commerce is rather less attractive for women due to the absence of direct interaction with the sellers [15]. Second, the types of products sold on the internet are more suitable for men than women [52, 60]. Men are associated with “hard” products like computers, electronic gadgets, and sport apparel which are widely available. “Soft” products such as food and textiles for women are not only limited but also require actual testing prior to purchase. In the same vein, women, more than men, appreciate the physical evaluation of products including seeing, touching, and feeling the product in order to make a purchasing decision [11, 15]. This is another reason why many women found e-commerce to be less accommodating than conventional shopping. Lastly, since e-commerce activities are plagued by concerns of privacy and security [7], the platform is less favorable for women, who avoid risk [19], than men who easily trust people [60].
In short, in agreement with the majority of studies, we expect men to be more likely to adopt e-commerce than women [35, 61, 63].
Hypothesis 2:
E-commerce usage is more prevalent among men.
Education
Classic beliefs contend that education is an essential quality that molds a person’s value systems, cognitive preferences, learning capabilities, skills, and innovativeness [5]. Accordingly, one’s level of education can predict if they will be proactive or reactive toward cutting-edge technological applications in daily life [4]. In general, people with a higher education demonstrate greater knowledge, experience, and risk tolerance, making them eager to adopt online shopping [6, 34]. Previous research supports the argument that a higher level of education has a positive effect on a person’s tendency to use an e-commerce platform at both the individual- [3, 20, 57, 58] and firm-level [12, 17].
Hypothesis 3:
E-commerce usage is more prevalent among customers with a higher education level.
Employment status and income level
Since education, employment status, and income level are positively related, some studies ascertain that a person’s employment status is a significant factor in explaining e-commerce adoption. For example, Pérez-Hernández and Sánchez-Mangas [47] found that the probability of making an online purchase is higher among workers than unemployed individuals. Perhaps a better explanation is that people with a job earn money that enables them to buy things online. Thus, the following examination shall explore the relationship between income level and probability of online shopping.
Indeed, even before online shopping was well established, studies discovered that at-home shoppers are among higher income earners [14]. Subsequently, empirical studies support similar findings that online shoppers possess more wealth than shoppers at traditional stores [3, 38, 57, 58]. There are two possible reasons for this. First, wealthier people are more convenience-oriented, risk tolerant, and less brand and price conscious [16], all of which are consistent with e-commerce adoption. Second, most items sold over the internet like books, computer hardware, etc., are considered “normal goods,” those for which demand increases as income increases [66]. Thus, we posit the following:
Hypothesis 4:
E-commerce usage is more prevalent among working customers.
Hypothesis 5:
E-commerce usage is more prevalent among customers with a higher income level.