Enhancing sustainability marketing strategies in online transactions: a categorical factorization approach

The rapid advancement of internet technology has revolutionised business operations, particularly in the realm of online purchasing. Companies are increasingly embracing online platforms to showcase their products and services, as consumers are drawn to the cost-effectiveness and convenience of online shopping. This study employs Categorical Factor Analysis (FA) to analyse click data from JD.com, with the objective of investigating the relationship between online consumer characteristics and purchase history. The primary focus is to identify the influential factors and latent variables that impact the average transaction value of online orders. The findings of this research highlight the pivotal role played by sustainability marketing strategies, along with other factors such as cognitive quality, financial capacity, group demand levels, and online shopping convenience. Interestingly, the study reveals that the utilization of coupons, often associated with sustainability marketing efforts, may have unintended consequences on overall transaction values. Each identified factor demonstrates a significant 99% level of significance (p<0.01) within the regression analysis. This study contributes valuable insights into online consumer behaviour, emphasising the importance of sustainability marketing strategies in shaping consumer choices and guiding companies in the development of environmentally conscious pricing and allocation strategies.