Examine the Online Shopping Behavior Among Students Essay Example
Nowadays, Internet is not only a networking media, but it is also used as a means of transaction for consumers at global market. The Internet is becoming popular in Malaysia, as it is a virtual place where people share their ideas, build communities, shape the future democratically, and promote a new way of doing business. The Internet is the worldās biggest shopping mall that allows enterprises to do their business with low cost involved, yet covering global market.
The usage of Internet has grown rapidly over the past years and it has become a common means for delivering and trading information, services and goods. According to the survey by A.C.Nielsen (2007), more than 627 million people in the world have done online shopping. Forrester (2006) anticipated that e-commerce market wo
...uld grow from $228 billion in 2007 to $288 billion in 2009. Likewise in 2004, researchers were aware online retail sales in the US that were US$65 billion in 2004 would rise to US$117 billion in four years by 2008. Further, in 2005, it was anticipated that by 2010 e-commerce would account for US$316 billion in sales; that is to say, 13 percent of overall retail sales; therefore, 61 percent of online users in the US would make purchases via internet in 2010, compared with just 46 percent in 2004 (Jupiter Research Survey, 2005).
A research by Gardyn (2002) reported that University Students, a population 90 percent of which access the internet daily, spends about $200 billion a year in the buying power to the US market, with an average studentās available discretionary spending totalling to $287 each month. Due to the
studentsā purchasing power in the marketplace, it is critical for e-retailers and consumer behaviour marketers to fully understand the attitude of this particular population towards online shopping. In the Malaysian context, with the expansion of educational services, university students have become common consumers of market segments (Sabri et al., 2008). A large body of research is available on the online shopping in the world. However, there is still a need for closer examination on the online shopping buying behavior in specific countries (Bobbit & Dabholkar, 2001; Goldsmith, 2002; Salisbury et al., 2001). Considering that internet shopping is still at the early stage of development in Malaysia, little is known about consumersā attitudes towards adopting this new shopping channel and factors that influence their attitude (Haque, Sadeghzadeh, & Khatibi, 2006).
The consumersā attitude towards online shopping is known as the main factor that influences their online shopping attitude (Cheung & Lee, 2003; Goldsmith & Flynn, 2004; Shwu-Ing, 2003; Wolfinbarger & Gilly, 2001). Attitudinal issues are also thought to play a significant role in e-commerce adoption; that is to say, through motivation and perception, attitudes are formed which, in turn, directly influence decision making (Haque et al., 2006). Therefore, understanding consumer attitude toward online shopping helps marketing managers to predict the online shopping rate and evaluate the future growth of online commerce. This paper first examines the relationship between consumer factors and attitude toward online shopping, and then analyzes the factors that influence attitude toward online shopping. The main aim of this study is to investigate online shopping behavior and attitude among University Malaysia Pahang students, with a particular emphasis on understanding an evaluating the factors
which directly or indirectly influence the attitude towards online shopping.
Online shopping in Malaysia is a new technology breakthrough since it has just begun to assault the Malaysia retailing sector with online shopping services (Haque et al., 2006). In order to increase online shopping in Malaysia, understanding consumer online shopping behavior and factors influencing this behavior when shopping online should be given priority.
Research indicates that 81 percent of those who browse web sites for goods and services do not actually make an online shopping (Gupta, 1995; Kline, 1998; Shim, Eastlick, Lotz, & Warrington, 2001). Interestingly, Taylor Nelson Sofres (2002) reported that only 3 percent of Malaysians Internet users shopped online in May 2002, a reduce of 1 percent compared to 4 percent in 2001 (Chua, 2008; Hamid & Khatibi, 2006). Majority Malaysians (76%), specially younger people were using the internet for non-shopping activities such as seeking information, playing games, entertainment, or communicating with friends, etc. (Hamid & Khatibi, 2006).
Consumersā attitude towards online shopping is known as the main factor that affects online shopping behavior (Michael, 1998). Attitude directly influence decision making and also is central to a buyerās shopping behavior. Consequently, the group with more positive attitude should be the target market (Shwu-Ing, 2003). According to study conducted by Haque et al. (2006), attitude towards online shopping is considerably quite negative among Malaysians. Therefore, it is important to recognize that numerous factors precede attitude formation and change. The process of consumersā decision-making on online shopping relates to the experiences and satisfaction they perceive while shopping. The Malaysian Internet users conducting online shopping seek benefits such as cost saving, convenience, cheaper
price, a way to easily search for information, and a 24-hours services (Haque, Mahmud, Tarofder, & Ismail, 2007).
As pointed out by Rodgers and Thorson (2000), various consumersā motives affect attitude towards online shopping so internet users become more used to this medium. So, to understand the driving forces toward online shopping and their relationship with attitude, it is important to recognize how students make their online shopping. Consumer shopping behavior is strongly influenced by consumersā characteristics. In addition, attitudes serve as the bridge between consumersā characteristics and online shopping behavior. As mentioned by Defeng, Bingchuan, and Li (2006) attitude towards online shopping is influencing by demography factors, such as gender, age and income. In addition consumers have different personality, which may influence how they perceive their online shopping behavior (Wolfinbarger & Gilly, 2001).
Finally, opportunities of online shopping can be restricted by internal and external constraints on behavior (Karami, 2006). It is important in explaining human behavior since an individual who has the intention of accomplishing a certain action may be unable to do so because his or her environment prevents the act from being performed. Moreover, there are some barriers which have contributed to the unwillingness of Malaysians to shop online because they afraid their personal information will be stole or misused by others (Haque et al., 2006). Despite the high potential of online shopping in Malaysia, there is still a lack of understanding concerning the online shopping and its impact on marketing (Chua, Khatibi, & Ismail, 2006). Consequently a framework is needed to structure the complex system of effects of these different factors, and develop an in-depth understanding of consumersā
attitudes towards online shopping activities.
The objective of this research is to examine the online shopping behavior among students in University Malaysia Pahang. More specifically, the objectives of this study are: 1. To determine consumersā purchase intention and direction attitude towards online shopping. 2. To determine the relationships between ease-of-use, usefulness, trust, attitudes and purchase intention. 3. To determine whether, or not, consumersā purchase intention would be predicted by ease-of-use, usefulness and trust in online shopping directly or indirectly by attitude.
Research questions are posed to obtain the relevant information required to fulfill the objectives. The proposed questions to be answered in this research are as follow: 1. What is the level of consumersā purchase intention and direction attitude towards online shopping? 2. Are there any relationships between ease-of-use, usefulness, trust, attitudes and purchase intention? 3. Would consumersā purchase intention be predicted by attitude, ease-of-use, usefulness and trust in online shopping directly or indirectly?
This study will be beneficial to ensure the success of online business. Besides that, this study would be beneficial for the retailers to understand their targeted customers. Retailer can know what actually the consumer perception towards the online shopping services. Other than that, this study will also be beneficial for further study of the relationship between consumersā behavior toward online shopping with purchase intention. Findings of this research also can help retailers and consumer find the best way and improvement to provide the excellent service in future.
Ease of use āEase of useā is deļ¬ned as the individualās perception that using the new technology will be free of effort (Davis, 1989, 1993). Applying this to our research
context, āease of useā is the consumerās perception that shopping on the Internet will involve a minimum of effort. Whereas āusefulnessā referred to consumersā perceptions regarding the outcome of the online shopping experience, āease of useā refers to their perceptions regarding the process leading to the ļ¬nal online shopping outcome.
In a simpliļ¬ed manner, it can be stated that āusefulnessā is how effective shopping on the Internet is in helping consumers to accomplish their task, and āease of useā is how easy the Internet as a shopping medium is to use. According to TAM, āease of useā has a dual effect, direct as well as indirect, on consumersā intention to shop online. The indirect effect on intention is through āusefulnessā, as already explained in the previous section. The direct effect is explained by the fact that in behavioral decision making consumers attempt to minimize effort in their behaviors, as is also the case with consumersā perceptions regarding the āease of useā: the perception that Internet shopping will be free of effort (Venkatesh, 2000).
The easier and more effortless a technology is, the more likely consumers intend to use this technology. Understanding that āease of useā affects consumersā attitude and intention toward online shopping, it is important to identify the latent dimensions of this construct in the Internet setting. According to TAM, āease of useā is particularly of inļ¬uence in the early stages of user experience with a technology or system (Davis, 1989, 1993). Following this, Venkatesh (2000, p. 343) stated: āWith increasing direct experience with the target system, individuals adjust their system-speciļ¬c ease of use to reļ¬ect their interaction with the systemā.
justify">Implying that if consumers get more experienced with Internet, they will adjust their perceptions regarding the āease of useā of the Internet as a shopping medium in a positive direction. Besides āexperienceā with the technology or system, also three other latent dimensions of the āease of useā construct are incorporated in our framework: ācontrolā, ācomputer playfulnessā, and ācomputer anxietyā (Venkatesh, 2000). āControlā relates to an individualās perception of the availability of knowledge, resources, and opportunities required to perform a speciļ¬c behavior, in our case online shopping. āComputer playfulnessā is the degree of cognitive spontaneity in computer interactions. Playful individuals may tend to underestimate the difļ¬culty of the means or process of online shopping, because they quite simply enjoy the process and do not perceive it as being effortful compared to those who are less playful (Venkatesh, 2000).
āComputer anxietyā is deļ¬ned as an individualās apprehension or even fear when she/he is faced with the possibility of using computers. This inļ¬uences consumersā perceptions regarding the āease of useā of the Internet as a shopping medium in a negative way, since using a computer is one of the necessary requirements for online shopping. In addition to these four latent dimensions, āsite characteristicsā like search functions, download speed, and navigation, also play a role in shaping āease of useā(Zeithaml et al., 2002). But since these site characteristics merely inļ¬uence the āease of useā of a particular Web site or online store, and not the Internet as a shopping medium in general, we choose not to elaborate on these site characteristics for the purpose of this paper. 2.1.2Usefulness
āUsefulnessā is deļ¬ned as the individualās perception that using
the new technology will enhance or improve her/his performance (Davis, 1989, 1993). Applying this deļ¬nition to our research context, as the new technology we classify shopping on the Internet, and as the individualās performance the outcome of the online shopping experience. Then, āusefulnessā refers to consumersā perceptions that using the Internet as a shopping medium enhances the outcome of their shopping experience.
These perceptions inļ¬uence consumersā attitude toward online shopping and their intention to shop on the Internet. TAM posits a weak direct link between āusefulnessā and attitude, and a strong direct link between āusefulnessā and intention (Davis et al., 1989). This was explained as originating from consumers intending to use a technology because it was useful, even though they did not have a positive affect toward using. Apart from this, āusefulnessā is also linked with āease of useā to determine consumersā attitude toward online shopping.
According to TAM, āusefulnessā is inļ¬uenced by āease of useā, because the easier a technology is to use, the more useful it can be (Venkatesh, 2000; Dabholkar, 1996; Davis et al., 1989). In our framework, we include two latent dimensions of the āusefulnessā construct: āconsumer return on investment (CROI)ā, and āservice excellenceā (Mathwick et al., 2001). Both dimensions are extrinsic value-based perceptions and serve as performance indicators for shopping on the Internet. āCROIā is the perceived return on cognitive, behavioral, or ļ¬nancial investments made by the consumer.
By investing in a computer and learning to shop on the Internet, the consumer expects a desired result, such as an online search or Web purchase, in return from shopping on the Internet. If this return meets their expectations,
consumersā āusefulnessā of the Internet as a shopping medium will be positive. āService excellenceā is the consumerās appreciation of delivered promises and performed functions. Service excellence operates as an ideal; a standard against which judgments are ultimately formed (Holbrook, 1994). If online shopping meets this ideal by enabling the consumer to accomplish the shopping task he or she has set out to perform, then consumers will judge the Internet shopping performance positively (Mathwick et al., 2002). This leads to positive perceptions regarding the usefulness of online shopping.
Trust in online shopping Lack of trust is one of the most frequently cited reasons for consumers not shopping on the Internet (Lee and Turban, 2001). Since this shopping medium is relatively new and most of them have only little experience with it, shopping on the Internet provides a challenge to many consumers. Rotter (1971) has found that in novel situations, people rely on their general disposition to trust. The most salient source of trust in a retail setting is the salesperson, where consumer trust is dependent on the salespersonās expertise, likeability, and similarity to the customer (Doney and Cannon, 1997).
However, with online shopping this physical salesperson is replaced by help buttons and search features, thus removing the basis of consumer trust in the shopping experience (Lohse and Spiller, 1998). Furthermore, online shopping also contains a level of risk. Consumers cannot physically check the quality of a product or monitor the safety and security of sending sensitive personal and ļ¬nancial information while shopping on the Internet (Lee and Turban, 2001). This condition creates a sense of powerlessness among online shoppers. Therefore trust has an important
moderating effect on the relationship between consumersā attitude toward Internet shopping and intention to shop online.
The complexity of examining consumer trust in Internet shopping and its determinants lies in the fact that online shopping involves trust not simply between the Web shop and the consumer (interpersonal trust), but also between the consumer and the computer system, i.e. the Internet (institutional trust) (McKnight and Chervany, 2001-2002). Next to this, contextual factors like security and privacy have an impact on consumer trust in shopping on the Internet (Lee and Turban, 2001).
A high level of security and privacy in the online shopping experience has a positive effect on consumer trust, owing to the lowered risk involved with exchanging information. In general, the level of trust, interpersonal as well as institutional, is positively related to consumersā attitude and intention to shop on the Internet. Violation of consumersā trust in online shopping, in terms of privacy invasion or misuse of personal information, negatively inļ¬uences attitude toward online shopping and leads to reluctant behavior among consumers to shop on the Internet in future occasions.
Attitudes towards Online Shopping Attitude towards a behavior refer to āthe degree to which a person has favorable or unfavorable evaluation of the behavior of the questionā (Grandom and Mykytyn, 2004). Attitudes toward online shopping are defined as a consumerās positive or negative feelings related to accomplishing the purchasing behavior on the internet (Chiu et al., 2005; Schlosser, 2003a, b).
Buying trends and internet adoption indications have been seen as the overall electronic commerce value in Malaysia rising from US$18 million in 1998 to US$87.3 million in 1999 (Mohd Suki et
al., 2006). In order to investigate consumer attitudes, we need to know what characteristics of consumers typically online shopping is and what their attitude in online shopping is. In simple terms, this means that there is no point having an excellent product online if the types of consumers who would buy it are unlikely to be online.
In a situation of appropriate e-shopping environment if the product characteristics have electronic appeal and the consumers are familiar and feel confident in buying, e-shopping potential. may still suffer from other setbacks. In a greater sense, this may be caused by consumersā preference to use traditional shopping modes rather than shopping online. Alternatively, they may switch from ever visiting the store and their shifting tendency may ultimately reduce the profit margin of the physical stores. Therefore, evaluating attitudes of target consumers towards online shopping is critical.
Consequently, the group with the higher attitude score should be the target market (ShwuIng, 2003). According to the study by Armstrong and Kotler, (2000), a personās shopping choices are influenced by four major psychological factors: motivation, perception, learning and beliefs and attitude. That means that, through motivation and perception, attitudes are formed and consumers make decisions. Attitudes serve as the bridge between consumersā background characteristics and the consumption that satisfies their needs. Therefore, it is thus important to recognize that numerous factors precede attitude formation and change.
Consumersā characteristics such as personality nature, online shopping benefits and perceptions have also been found to influence consumersā online shopping behaviors and online shopping rate (Cheung and Lee, 2003; Goldsmith and Flynn, 2004; Shwu-Ing, 2003; Wolfinbarger and Gilly, 2001). Therefore, understanding consumer
attitudes help marketing managers to predict the online shopping rate and evaluate the future growth of online commerce.
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