Correlates of Consumer Online Buying Behaviour PDF
Correlates of Consumer Online Buying Behaviour PDF
-2016
Abstract—The increasing usage of internet provides a developing prospect for online retailers. The purpose of this research
is to ascertain the factors that influence consumer online buying behavior (online shopping intention). To this end, a survey
was conducted by administering questionnaires on respondents. In total, 200 students from University Utara Malaysia (UUM)
were chosen based on convenient sampling method. Descriptive statistics, reliability analysis, and multiple-regression were
employed to analyze the data collected. The results show that price and product variety have significant effect on consumers’
online shopping behavior and online shopping intention. Subsequently, it was recommended that retailers should adopt
appropriate pricing and product assortment strategies which are found to be the most important factors influencing online
buying behavior of consumers.
Keywords— Consumer Behaviour, Online Shopping, Shopping Intention, Price, Product Variety.
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International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-2, Issue-1, Special Issue-1, Jan.-2016
addressing the factors that have significant effect on credit card number, e-mail address and other privacy
online shopping (Shergill & Chen, 2005; Jarvenpaa & information. Know and Lee (2003) states that the
Todd, 1997; Shah Alam et. al., 2008). Ernst and security for online transactions is a major concern for
Young (2000) reported that internet users purchase customers and it determine their online purchase. In
online because of good product selection, competitive other words the higher the perceived level of security
prices, and ease of use. Similarly, popular literature the higher will be the tendency for customer to
cited ease of shopping comparison, low prices, timely engage in online shopping. Security trust has received
delivery, convenience, time saving, low shipping the most consistent support as a factor that influence
costs, improved customer service, tax exemption online buying (Jarvenpaa et al., 1997; Koufaris &
status and speedy e-mail response, as key reasons for Hampton-Sosa, 2002). To this end we propose that
the increase in online shopping (Lorek, 2010). security level is related with consumers’ online
shopping behaviour.
The relationships between the factors and consumer’s H3: There is a significant relationship between
online buying behaviour have been found to be Security Level and online shopping behaviour
positive in a number of studies which include
Delafrooz et al., (2010), Saprikis et al. (2010),
Shergill and Chen (2005) and Shah Alam et al. Product variety is the quantity of different product
(2008). The key factors that will be investigated are types provided by online retailer. Saprikis et al.
convenience, price, security levels, product variety, (2010) state that online retail shops have more
reliability and web design. Convenience is anything options compared to brick-and-mortar stores and thus,
that saves consumer’s resources like time or energy. the former attracts more customers than the latter. It
In the study of Saprikis et al. (2010), authors refer to means with if the types of product that the online
convenience as time saving and having more time to retailer provided is various than the traditional
evaluate and select the products. Additionally, shopping, consumers will switch to online shopping.
Karayanni (2003) states that convenience means that Hence, we hereby propose that product variety is
online shoppers tend to value avoidance of queues, related with consumers’ online shopping behaviour
availability of shopping on a 24-hour basis and time (online shopping intention).
efficiency. H4: There is a significant relationship between
Product Variety and online shopping behaviour
According to Nielsen (2007), more than 627 million
people in the world have shopped online. Forrester Reliability is the extent to which a consumer trusts
(2006) research estimates e-commerce market the online retailers in their services. These include
reached $228 billion in 2007, $258 billion in 2008 delivering the correct products/service after received
and $288 billion in 2009. The convenience and ease payments from customers. The specifics of reliability
of online shopping encourage consumers to engage in include such things as accuracy in billing, keeping
online shopping. Hence, we propose that convenience records correctly and delivering service at the
is related with consumers’ online shopping behaviour. designated time (Maiyaki, 2012).Vijayasarathy (2002)
H1: There is a significant relationship between states that reliability is closely associated with risk
Convenience and online shopping behaviour since it is a measure of customers’ perceptions of
whether or not merchants can be counted on to
Price is the amount or counter value pay by consumer deliver on their promises. According to Jun et al.
in exchange for a product or service. In the study of (2004) online consumers apparently want to receive
Saprikis et al. (2010), it was found that price have a the right quality and right quantity of items that they
significant influence on consumer online shopping. have ordered within the time frame, promised by the
The findings of the study imply that a price is a factor retailers, and they expect to be billed accurately.
in enhancing online shopping. The result is consistent Accordingly, to be considered as a reliable online
with the findings of Ghani et al. (2001) which equally service provider, an organization must deliver the
discovered that price positively influence online promised services within the promised time frame
purchase behavior. Price is always an important issue (van Riel et al., 2003). The aforementioned show that
for a consumer to decide whether to purchase a reliability is a factor which consumers consider in
product or not. Similarly, Price strategy studies argue online shopping. Thus, we propose that reliability is
that price level and quality are important dimensions related with consumers’ online shopping behaviour.
of competitive strategies in retailing (Morschett et al., H5: There is a significant relationship between
2006). Consequently, we propose that price is related Reliability and online shopping behaviour
with online shopping behaviour of consumers.
H2: There is a significant and positive relationship
between price and online shopping behaviour Website design is the extent to which a service
provider’s website is carefully developed and
Security level is consumer’s perception of how online designed to enable easy access and navigation by
retailers deal with their personal information such as customers. Kim and Lee (2002) states that the web
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International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-2, Issue-1, Special Issue-1, Jan.-2016
site design describes the appeal of the user interface (2005) identified web site design characteristics as
design presented to customer. According to Turban the dominant factor which influences consumer
and Ghehrke (2000) elegant design of web site will perceptions of online purchasing. Hence, it can be
attract the intended audiences than a poorly designed proposed that web design is related with consumers’
site. In this way, it is presumed that customers are online shopping behaviour.
willing to visit more often and stay longer with H6: There is a significant relationship between
attractive web sites. Furthermore, Shergill and Chen, web site design and online shopping behaviour
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International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-2, Issue-1, Special Issue-1, Jan.-2016
IV. RESULTS
Reliability Test
Before proceeding to the main analysis, Cronbach’s
alpha reliability test was run. Cronbach’s reliability
coefficient indicates the internal consistency and how
well the items under each variable hang together to From the above demographic profile, male
measure that very variable (Maiyaki & Mokhtar, respondents constituted 99 (49.5%) while female
2011a). The closer the Cronbach’s alpha to 1 implies respondents constituted 101 (50.5%). Majority of the
higher internal consistency and thus, more reliable. It respondents were between the age range of 21 to 22
is generally agreed that the value of Cronbach’s alpha and thus, representing 73%. Most of the respondents
must be 0.7 or more to be acceptable; however, lower were Chinese 147 (73.5%) and for religion Buddhist
coefficients may be acceptable (Hair, Money, score the highest frequency of 127 which is
Samouel, & Page, 2007). The result of the reliability equivalent to 63.5%. With regards to marital status
coefficients ranged from 0.759 to 0.823 and thus, all respondents that are single constituted 99.5%.
the factors are reliable as can be seen from the table
below. Multiple Regression Analysis
A multiple regression was run in order to the test the
Table 2: RESULTS FOR RELIABILITY TEST linear relationship between the predictors and
explanatory variables of the study. Hence,
convenience, price, security, product variety,
reliability and design were regressed against online
intention. The model summary, ANOVA and
coefficient tables are presented below:
Descriptive Statistics
The demographic variables analyzed in this study
include gender, age, race, religion, and marital status
as in the table below.
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International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-2, Issue-1, Special Issue-1, Jan.-2016
From table 1 it could be seen that the independent variety are among the key factors that directly affect
variables are able to jointly explain 43.0% variance in online shopping behaviour of consumers. The
online shopping behaviour. This figure is quite findings further suggest that the influence of product
sufficient to indicate the robustness of a model in variety on the online shopping behaviour is stronger
social research. Thus, the whole model is significant than that of price.
as indicated in Table 2 with p < .001. Further analysis
shows that only price and product variety have The result is consistent with the findings of Ghani et
significant relationship with online shopping al. (2001) that has identified price positively
behaviour both with p-value < .001. On the other influencing online purchase intention and behaviour.
hand, each of convenience, security, reliability and The price of the product significantly determines the
web design has no significant association with online customers’ behaviour with regard to online shopping.
shopping behaviour. Based on the above, the research As for the product variety, the positive association
hypotheses were statistically tested as follows: implies that when there is large amount of product
variety, consumers tend more towards online
Table 4: TEST OF HYPOTHESES shopping. This further suggests that when the benefit
of product variety such as: wider product range and
product information are available, customers are will
be more inclined towards online shopping rather than
traditional shopping.
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International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-2, Issue-1, Special Issue-1, Jan.-2016
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International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-2, Issue-1, Special Issue-1, Jan.-2016
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