The Growth of Online Retailing in India

Abstract

Abstract Industrial experts have agreed that India’s small-scale industries are intensely competitive due to globalization, domestic economic liberalization, and digitization. The purpose of this quantitative correlational study was to evaluate the relationship between transaction costs, customer satisfaction, and customer trust in online shopping with the growth of online retailing in India. The theoretical foundation for this research study was the theory of planned behavior, and the unified theory of acceptance and the use of technology. The research questions examined India’s online retailing growth due to transaction costs, customer satisfaction, and customer trust. The study used a quantitative correlational research design. The data collected by the survey research method were analyzed with the software package IBM SPSS. The results indicated that customer satisfaction and transaction cost are significant predictors and can explain 59% (adjusted R2 = .589) of the variance in online retailing growth in India. The previous research had not empirically verified the relationship between transaction costs, customer satisfaction, and customer trust in online shopping with the growth of online retailing in India. The recommendation was to include environmental factors and to increase sample size in future research. Closing the gap may contribute to a positive social change by preparing small business owners to compete against online retail growth by understanding which factors affect the growth of online retail in India. With online shopping support, small business owners can implement measures to retain and attract customers of specific demographic groups.