Who Spends the Highest Penny in Online Shopping?

After familiarisation of masses with online shopping, online retailers aim to encourage e-shoppers to spend more. However, lack of research and literature related to this specific issue, make marketers look for reliable and accurate information to segment, target and position their products to most profitable customer. This article addresses this problem by answering two specific questions: (1) what are the demographic factors which affect annual online expenditure and, (2) what is the highest amount spent in single transaction by an e-shopper. Analysis of data collected through web survey of 308 e-shoppers revealed significant association between annual online expenditure and demographic factors like city of residence, age, gender and occupation. Similarly, association was found between highest amount spent in a single transaction and the demographic factors like age, gender, occupation and marital status. Subsequent chi-square post-hoc test via a standard residual method revealed some surprising results. For example, the highest online expenditure slab for annual expenditure done among different occupational categories was by students and servicemen contributing significantly to the omnibus chi-square statistics instead of the business class category.