Determinants of Recent Online Purchasing and the Percentage of Income Spent Online

Author
Kristina M. Lybecker, Brendan Hannah
Content Type
Working Paper
Institution
Department of Economics and Business, Colorado College
Abstract
The recent stagnation of electronic commerce highlights the need to understand contemporary online consumer behavior. This study incorporates current user demographics and emerging Internet activities to dynamically model the determinants of two key measurements of recent online shopping, a purchase within the last year and the novel dependent variable, percentage of income spent online in the last three months. Logistic regression is applied to a nationally representative 2007 survey of the U.S. online population. Determinants of a recent online purchase include, ownership of a credit card, an online payment account (PayPalTM), listening to podcasts, participating in online auctions, and for the first time, female gender. In a second regression, positive determinants for the percentage of income spent online include male gender, educational attainment, online auctions, instant messenging and online dating. Online spending increases with time online and appears to compete with other forms of online entertainment and social networking.
Topic
Economics, Gender Issues, Markets, Science and Technology
Political Geography
United States