The Internet has made profound changes in how people conduct their daily lives as well as how they buy goods and services. This study;;s objective is to shed light on the use and diffusion of online or electronic buying (e-buying). Canadian households have not adopted e-buying equally, as revealed by Statistics Canada;;s Household Internet Use Survey (HIUS) data of 1997 – 2003. We explore how e-buying varies across age groups, genders, education levels, income levels, and the nature of goods. We first develop a simple model for e-buying demand in the context of a utility-maximizing individual choosing between e-buying and conventional buying. We employ a parameter reflecting individual taste, so we can study the influence of individual-specific factors in e-buying adoption decisions. The taste parameter is distributed in a population in some unknown way, and we try different distributions in empirical tests. We use the literature in conjunction with the model to derive the model;;s implications in terms of variables available in the HIUS datasets. We employ Tobit and Poisson regression models for the empirical tests. The tests suggest that household e-buying is more when household income is more, when heads of households are more educated, and for homogeneous goods; but that household e-buying is less when heads of households are female. This understanding may help policy makers, businesses, and other interested parties find ways to promote Internet use and e-buying across all segments of society.
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