FACTORS INFLUENCING CUSTOMERS’ ONLINE CLOTHING BEHAVIORAL INTENTION TO BUY-NOW, PAY-LATER AMONG MILLENNIALS: REFERENCE TO WESTERN PROVINCE, SRI LANKA

Abstract

1. Introduction Due to the expansion of online shopping among consumers, digital payment methods have become essential. The buy-now, pay-later (BNPL) option is also a digital transaction mechanism that is getting significant interest worldwide. However, the usage percentage of BNPL is very low when it is considered in Sri Lanka. Thus, this study aims to investigate the factors influencing customers' online clothing behavioral intention to BNPL among millennials in the Western province of Sri Lanka. 2. Research Methodology The Unified Theory of Acceptance and Use of Technology 2 framework and the Extended Technology Acceptance Model provided the theoretical foundation for this study. Through a deductive approach, and quantitative survey research design, data was collected from 384 millennials who have an understanding of BNPL in online clothing purchasing in the Western province of Sri Lanka. Multiple regression analysis was performed in the SPSS 25 version to examine information gathered via a self-administered structured questionnaire with purposive sampling. 3. Findings and Discussion The findings indicate that perceived benefits, performance expectancy, effort expectancy, social influence, and habit positively impact customers' online clothing behavioral intention to BNPL. Perceived risk negatively impacts it. Furthermore, facilitating conditions have no impact, while the most impactful factor is performance expectancy. 4. Conclusion and Implications The study's findings suggest that emphasizing performance expectancy, perceived benefits, and social influence can enhance BNPL adoption among millennials. By highlighting BNPL's convenience and security, businesses can boost customer trust, increase purchasing power, and improve average order values, ultimately driving higher sales for e-commerce retailers. Most of the previous studies used UTAUT2 to BNPL but this study adds perceived risk & benefits for theoretical contribution