TITLE:
Socio-Cultural and Economic Factors in Cross-Border Purchase: A Study of Customers’ Perspective in Sunauli-Nepal/India Border
AUTHORS:
Udaya Raj Paudel, Niranjan Devkota, Udbodh Bhandari
KEYWORDS:
Socio-Cultural Factors, Customers’ Perspective, Cross-Border Purchase, Logistic Regression, Nepal-India Border
JOURNAL NAME:
Modern Economy,
Vol.9 No.6,
June
7,
2018
ABSTRACT:
Nepal and India sustain bilateral relationship and
share social, cultural, economic, political
and geographical proximities contributing people of both nations to a number of
advantages. This study analyzes socio-cultural, geo-political, and
economic proximities contributing people of Sunauli-India/Nepal border
exploiting purposive sampling in 429 respondents with a structured
questionnaire survey in February 2018. Descriptive and inferential data
analysis techniques are performed along with Logistic Regression Model to
interpret the determinants of cross-border purchase. The result revealed 96.3%
of the total respondents involved in purchase, out of them, 85.6%, 77.2%, 71.6%, 71.2% and 54.6%
purchase due to economical price of the goods, festivals, communication access,
habit and open border factors respectively. The empirical results of the binary
logistic regression models revealed different effects of the factors on
customers cross border purchase. Economical goods (2.727***), hassle free
cross-border imports (1.952***), language similarities (1.551**) and goods
available in local market (1.268**) significantly and positively affect the
cross-border purchasing activities and the
Odds Ratio of given variables is 15.28, 7.04, 4.71 and 3.55
respectively. Following the analysis, the study concludes that there is positive influence of socio-cultural characteristics in cross border purchase.
Open border factor is equally important to stimulate such purchasing
activities. More than other factors, economic characteristics as availability
of goods, their types and economical price are all in all important.