Online Purchase Behavior of Generation Y in Malaysia

The escalation of the Internet and information technology has significantly contributed to the popularity of online shopping. Generation Y (Gen Y) has been identified as the age cohort that makes up the majority of online shoppers in many developed countries. Even though Gen Y makes up the largest segment of Malaysia's population as well as its Internet population, they are not the largest segment of online shoppers. The aims of this study are to investigate the online purchase behavior of Gen Y in Malaysia and identify the factors that drive the behavior. 200 respondents from Gen Y participated in the survey. Findings from the study reveal that Gen Y in Malaysia buys mostly from online retailers operating via Facebook and Instagram. Of the four factors proposed in the model, only perceived trust and perceived reputation have a significant positive relationship with online purchase intention of Gen Y shoppers. Implications of these findings are discussed for researchers and practitioners.