IDEAS home Printed from https://ideas.repec.org/a/eee/iepoli/v23y2011i3p213-226.html
   My bibliography  Save this article

To have or not to have Internet at home: Implications for online shopping

Author

Listed:
  • Pérez-Hernández, Javier
  • Sánchez-Mangas, Rocío

Abstract

This paper analyzes the individual decision of online shopping, in terms of socioeconomic characteristics, Internet related variables and location factors. Since online shopping is only observed for Internet users, we use the Heckman’s two-step model to correct sample selection. We argue that one of the relevant variables to explain online shopping, the existence of a home Internet connection, can be endogenous. To account for this potential endogeneity, we jointly estimate the probability of online shopping and the probability of having Internet at home. The dataset used in this paper comes from the Household Survey of ICT Equipment and Usage, conducted by the Spanish Statistical Office on an annual basis. Our analysis covers the period 2004–2009. Our results show that not accounting for the endogeneity of having Internet at home, leads to an overestimate of that variable’s effect on the probability of buying online. We also show that, compared to other variables that are also relevant for online shopping, the effect of Internet at home is quite small. This finding can be important in the design of public policies aimed at enhancing e-commerce through providing households with Internet connection at home.

Suggested Citation

  • Pérez-Hernández, Javier & Sánchez-Mangas, Rocío, 2011. "To have or not to have Internet at home: Implications for online shopping," Information Economics and Policy, Elsevier, vol. 23(3), pages 213-226.
    • Handle: RePEc:eee:iepoli:v:23:y:2011:i:3:p:213-226
    DOI: 10.1016/j.infoecopol.2011.03.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167624511000266
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.infoecopol.2011.03.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cao, XinYu & Mokhtarian, Patricia L, 2005. "The Intended and Actual Adoption of Online Purchasing: A Brief Review of Recent Literature," Institute of Transportation Studies, Working Paper Series qt45q5p1vb, Institute of Transportation Studies, UC Davis.
    2. Prince, Jeffrey T. & Simon, Daniel H., 2009. "Has the Internet accelerated the diffusion of new products?," Research Policy, Elsevier, vol. 38(8), pages 1269-1277, October.
    3. Brengman, Malaika & Geuens, Maggie & Weijters, Bert & Smith, Scott M. & Swinyard, William R., 2005. "Segmenting Internet shoppers based on their Web-usage-related lifestyle: a cross-cultural validation," Journal of Business Research, Elsevier, vol. 58(1), pages 79-88, January.
    4. Cao, Xinyu & Mokhtarian, Patricia L., 2005. "The Intended and Actual Adoption of Online Purchasing: A Brief Review of Recent Literature," University of California Transportation Center, Working Papers qt5z75n416, University of California Transportation Center.
    5. Orviska, Marta & Hudson, John, 2009. "Dividing or uniting Europe? Internet usage in the EU," Information Economics and Policy, Elsevier, vol. 21(4), pages 279-290, November.
    6. Goldfarb, Avi & Prince, Jeff, 2008. "Internet adoption and usage patterns are different: Implications for the digital divide," Information Economics and Policy, Elsevier, vol. 20(1), pages 2-15, March.
    7. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    8. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
    9. Hitt, Lorin & Tambe, Prasanna, 2007. "Broadband adoption and content consumption," Information Economics and Policy, Elsevier, vol. 19(3-4), pages 362-378, October.
    10. Cao, XinYu & Mokhtarian, Patricia L, 2005. "The Intended and Actual Adoption of Online Purchasing: A Brief Review of Recent Literature," Institute of Transportation Studies, Working Paper Series qt095934s0, Institute of Transportation Studies, UC Davis.
    11. Freedman, David A. & Sekhon, Jasjeet S., 2010. "Endogeneity in Probit Response Models," Political Analysis, Cambridge University Press, vol. 18(2), pages 138-150, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Irena Atanasova & Vasileios Gerakis, 2023. "B2C E-Commerce Adoption among Elders in Greece," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 25(1), pages 112-124, June.
    2. Ángel Valarezo & Rafael López & Teodosio Pérez-Amaral, 2019. "Adoption of e-commerce by individuals and digital divide: Evidence from Spain," Documentos de Trabajo del ICAE 2019-19, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    3. Bang, Se Hoon & Kim, Jaesoo, 2013. "Price discrimination via information provision," Information Economics and Policy, Elsevier, vol. 25(4), pages 215-224.
    4. Pérez-Amaral, Teodosio & Valarezo, Angel & López, Rafael & Garín-Muñoz, Teresa, 2021. "Digital divides across consumers of internet services in Spain using panel data 2007–2019. Narrowing or not?," Telecommunications Policy, Elsevier, vol. 45(2).
    5. Marco Cioppi, 2013. "The role of web communication to enhance the value of retail trade in small cities," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 3(1), pages 127-145, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Punj, Girish, 2011. "Effect of Consumer Beliefs on Online Purchase Behavior: The Influence of Demographic Characteristics and Consumption Values," Journal of Interactive Marketing, Elsevier, vol. 25(3), pages 134-144.
    2. Tang, Wei & Mokhtarian, Patricia L, 2009. "Accounting for Taste Heterogeneity in Purchase Channel Intention Modeling: An Example from Northern California for Book Purchases," Institute of Transportation Studies, Working Paper Series qt3v25m8dc, Institute of Transportation Studies, UC Davis.
    3. Srinuan, Chalita & Bohlin, Erik, 2011. "Understanding the digital divide: A literature survey and ways forward," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52191, International Telecommunications Society (ITS).
    4. Yue-Teng Wong, 2013. "Personal Characteristics and Hedonic Shopping Orientation on Apparel Adult Shoppers’ Repatronage Behavioral Intention," Journal of Economics and Behavioral Studies, AMH International, vol. 5(8), pages 505-510.
    5. Pengyu Zhu & Liping Wang & Yanpeng Jiang & Jiangping Zhou, 2018. "Metropolitan size and the impacts of telecommuting on personal travel," Transportation, Springer, vol. 45(2), pages 385-414, March.
    6. Kongaut, Chatchai & Bohlin, Erik, 2014. "Investigating mobile broadband adoption and usage: S case of smartphone in Sweden," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106848, International Telecommunications Society (ITS).
    7. Ory, David T & Mokhtarian, Patricia L, 2007. "Description of a Northern California Shopping Survey Data Collection Effort," Institute of Transportation Studies, Working Paper Series qt39w9w743, Institute of Transportation Studies, UC Davis.
    8. Tang, Wei & Mokhtarian, Patricia L, 2009. "Accounting for Taste Heterogeneity in Purchase Channel Intention Modeling: An Example from Northern California for Book Purchases," Institute of Transportation Studies, Working Paper Series qt9mg5s5g8, Institute of Transportation Studies, UC Davis.
    9. Ory, David T & Mokhtarian, Patricia L, 2007. "Description of a Northern California Shopping Survey Data Collection Effort," Institute of Transportation Studies, Working Paper Series qt7k9413nw, Institute of Transportation Studies, UC Davis.
    10. Clemes, Michael D. & Gan, Christopher & Zhang, Junli, 2014. "An empirical analysis of online shopping adoption in Beijing, China," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 364-375.
    11. Mokhtarian, Patricia & Tang, Wei Laura, 2011. "Trivariate Probit Models of Pre-purchase/ Purchase Shopping Channel Choice: Clothing Purchases in Northern California," Institute of Transportation Studies, Working Paper Series qt03v2q5b7, Institute of Transportation Studies, UC Davis.
    12. Xinyu Cao & Zhiyi Xu & Frank Douma, 2012. "The interactions between e-shopping and traditional in-store shopping: an application of structural equations model," Transportation, Springer, vol. 39(5), pages 957-974, September.
    13. Patricia L Mokhtarian & David T Ory & Xinyu Cao, 2009. "Shopping-Related Attitudes: A Factor and Cluster Analysis of Northern California Shoppers," Environment and Planning B, , vol. 36(2), pages 204-228, April.
    14. Martin Dijst & Sendy Farag & Tim Schwanen, 2008. "A Comparative Study of Attitude Theory and other Theoretical Models for Understanding Travel Behaviour," Environment and Planning A, , vol. 40(4), pages 831-847, April.
    15. Patricia L. Mokhtarian & Wei (Laura) Tang, 2013. "Trivariate probit models of pre-purchase/purchase shopping channel choice: clothing purchases in Northern California," Chapters, in: Stephane Hess & Andrew Daly (ed.), Choice Modelling, chapter 12, pages 243-273, Edward Elgar Publishing.
    16. Watanabe, Hajime & Maruyama, Takuya, 2024. "A Bayesian sample selection model with a binary outcome for handling residential self-selection in individual car ownership," Journal of choice modelling, Elsevier, vol. 51(C).
    17. Granguillhome Ochoa, Rogelio & Lach, Samantha & Masaki, Takaaki & Rodríguez-Castelán, Carlos, 2022. "Mobile internet adoption in West Africa," Technology in Society, Elsevier, vol. 68(C).
    18. Watanabe, Hajime & Maruyama, Takuya, 2023. "A Bayesian instrumental variable model for multinomial choice with correlated alternatives," Journal of choice modelling, Elsevier, vol. 46(C).
    19. Hessami, Zohal & Resnjanskij, Sven, 2019. "Complex ballot propositions, individual voting behavior, and status quo bias," European Journal of Political Economy, Elsevier, vol. 58(C), pages 82-101.
    20. Mathilde Aubouin, 2023. "Determinants of the Digital Divide: Evidence from France," Annals of Economics and Statistics, GENES, issue 151, pages 37-80.

    More about this item

    Keywords

    D12; C35; C25; Online shopping; Internet at home; Binary choice models; Endogeneity; Sample selection;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:23:y:2011:i:3:p:213-226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505549 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.