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Write an essay on Factors Affect Online Spending Behavior against Sales.
This research paper is based on the topic “Factors Affect Online Spending Behaviour against Sales”. During this research project, the researcher has tried to identify the relationship between online sales and the purchasing behaviour of the customers. The study has been done based on the online sales in Malaysia.
Existing literature has been studied, which is available in different secondary sources like, websites, books and journals. The third chapter has stated about the methodology of the study. The study has chosen the positivism philosophy, deductive research approach and descriptive research design. The primary data has been collected from 100 customers in Malaysia. In the data analysis, it has been identified that the customers in Malaysia are facing some problems in online shopping and so they want some improvements in the online selling done by the companies. Therefore, it is very important for the companies to improve their service as soon as possible. In the fifth chapter, it has been tried to link the objectives of the study with the findings and after that few recommendations have been provided.?
The completion of the project gave me a huge amount of satisfaction. I have gained a huge amount of knowledge in online spending behaviour. On the completion of the research, I would like to thank a number of people who have helped to complete the project successfully. Firstly, I would thank my supervisor who has helped me in finding the secondary information. I would also thank my colleagues for assisting me in collecting the data from the survey. Last but not the least; I would thank my parents and family for encouraging me to complete the project.
It is observed that in the business to consumer (B2C) e-commerce cycle activity, the customers could use internet for several purpose as searching for the information regarding the features of the products, price, reviews and other details of the products. The current scenario of e-commerce in Malaysia is rapidly increasing as the rate of using internet has significantly increased. It is identified that almost 62% of the people in Malaysia have access to internet and almost 41% of the people regularly use internet on regular basis (Bharathi and Kumar 2013). According to the recent studies, almost 70% of the Malaysians buy products online at least once in a month. In order to further investigate, study revealed that almost 67% of the people in Malaysia tend to buy air flight tickets via internet (Cassidy 2013).
As mentioned by Abu-Al-Aish and Love (2013), over the past few decades, the Internet has enhanced into a wide global market place for the exchange of products and services. In some of the developed countries, the internet has been implemented as a fundamental medium that offer wide assortment of products with availability along with vast area coverage. Conversely, in some of the countries such as Iran, B2C has always been below than the assumed proportion of retail business because of its some constraints (AfsharJahanshahi, Zhang and Brem 2013). There are certain channels involved in business to consumer transactions.
Thus, performing research on online shopping behaviour has become major agenda in e-commerce during the past decade. Online spending behaviour is referred to the techniques of buying products and services through internet. There have been certain factors that could influence the online buying behaviour of the consumers. These factors are little different than the factors that are associated with traditional shopping behaviour. It is observed that in the typical online shopping techniques, when the customers recognize a need for some product or service, they go search through internet. Nevertheless, instead of searching actively, at some point of time, the potential buyers are often attracted by the information regarding the products related to the felt need. Therefore, the current research focuses on identifying the actual factors that largely influence the online spending behaviour of the consumers against the sales.
Different studies have been performed that include some know theories to explain online spending behaviour. Some of the previous studies have shown that there are some factors that influence the consumer purchasing behaviour; however, a full coverage of the all-key factors in one study model could be impossible. Most of the researches have focussed on some of the factors. AfsharJahanshahi, Zhang and Brem (2013) experimented some of the factors that mainly come from information system, marketing and psychology. As mentioned by Akbar, and James (2014), studies that interrelationship between customer acceptances, risk, and trust perceived usefulness. It is evident that one of the growing areas of E-commerce is online buying. Millions of customers across the globe are turning into to the World Wide Web for their purchasing needs that give them the access to local or international products by just a click. As opined by Cassidy (2013), over the past few years online shopping has become one of the popular trends as the people cannot take time off their busy schedule to go out an shop. Through online shopping, the consumers could also avail the variety of services for communication and consultancy. In addition, the existing research, the consumer behaviour was separately investigated in respect with getting information as well as buying behaviour. However, both are influencedby perceived risk and trust.
As mentioned by Choi and Chung (2013), that the e-commerce dates for over few decades and it is continuously developing with new innovations as well as technologies and multiple business are getting into the online markets. Furthermore, the online shopping can be considered as the activity that deals with selling of goods as well as online purchase. In the current time, the authors are predicting that e-commerce could easily take place rather than traditional business. In this context, Cheung and Vogel (2013) added that there are millions of people around the world involved in e-commerce due to its easy way of buying products through facilitated payment system. The primary phase is to classify and investigate some highly influencing aspects of online purchase. Thus, the investigating those factors that have impact on the buyer behaviour through internet is important. Recently, some of the authors wish to identify the role of satisfaction in e-commerce and it is still necessary to understand the relation between the satisfaction as well as consumer e-loyalty.As mentioned by Cheung and Vogel (2013) the customer satisfaction is essential to derive an effective financial performance of services in the organization; this is considered as the second important thing for them after deriving the profit. Therefore, the major purpose of the study is to examine and build up the main factors that are impacting and important to consumers while determining to shop online. In addition, one of the major goals is to decide the link between e-satisfaction as well as e-loyalty of buyers. There have been multiple definitions of e-commerce and they are not much far from the each other. As mentioned by Chiu et al. (2014) the online shopping could represent the business of products and services and it keeps the buyers building the relationship with customers and other organizations.
Further, the consumers have multiple opportunities in online shopping. In the previous studies, it is shown that due to developed technologies, the e-commerce merchandisers provide relevant information regarding the products and services. Frequent deals and offers could attract the customers to buy products online. The e-commerce organizations have developed the customer services, which are always considered as one of the important aspects of developed business. Due to the developed technologies and adoption of innovations, the people in Malaysia have experienced a significant access to internet. As almost 70% of people use internet on a regular basis, the e-commerce merchandisers have received the opportunity to develop B2C business. El-Gohary (2012) agreed that due to the significant response of the consumers in Malaysia, the organizations have implemented the opportunities to expand the e-commerce business.
It is evident that trends of e-commerce have become popular with developed technology and innovations. There have been some positive factors associated with online shopping behaviour. Hardly any research is conducted to investigate the actual factors that influence the online spending behaviour. Therefore, it is necessary to perform the research on the factors that have large impact on online spending behaviour against the sales. This research aims to develop such as a study that investigate the effects of multiple major factors associated with online spending behaviour that are identified that by the existing studies. For example, the online shopping allows the buyers to access the new information of products to make the comparison of product price with deals and offerings to place the order easily. As opined by Esteban-Millatet al. (2014), this type of product could reduce the price of the products and services to attract more consumers and make them loyal. The research aims to investigate the impact of online shopping experience on the perception of particular sorts of risks related to the online shopping. It also aims to find out how each type of risks affects the online purchase intentions. In spite of the increasing population of online buyers in Malaysia, almost 58% of the internet users could describe the online shopping as a frustrating, overwhelming and confusing activity Gong, Stump and Maddox (2013). In addition, increasing rate of online transactions continues to be considered as the concern.
The online shopping has become on the significant types of e-commerce that has proliferated increasingly since the beginning of 1990s. After the development of Web technologies, the enhancement of internet shopping around the world is assumed to be accelerated as it has multiple incentives. Thus, it can be mentioned that online shopping has gained popularity with a growing pace. However, it is necessary to investigate factors that have large impact online spending behaviour.
The primary purpose of the research is based on investigating the factors affecting the online spending behaviour of the customers of Malaysia by providing major emphasis on the young customers. Based on the certain aims of the study, the objectives driving the overall research are outlined below:
• To critically analyse the behavioural aspects of the customers against online sales transactions
• To understand the categorised segments of Malaysian products purchased against the spending behaviour
• To identify the gaps and the loopholes faced while purchasing the products by using online transaction methods
• To provide the justified recommendation to minimise the challenges related to the subject matter
The formation of the research questions is based on obtaining the relevant information through the intended studies and approaches. These questions should need to be developedeffectively to provide guidelines for the achievement of the identified research objectives. Therefore, the primary research questions structured in the following section will be attempted to answer accordingly through the predefined practices as part of the overall study.
• What are the major factors that have been affecting the customer purchase behaviour during the online transaction process?
• What are the diversified product categories preferred by the Malaysian customers?
• How the potential customers have been facing the major challenges during online transaction process?
• How the online transaction process can become the reliable process for influencing online purchasing behaviour?
The intended research is expected to shed light on the online consumer behaviours over a certain product through its findings. The uniqueness of the research is mostly based on investigating the compound effects of various external factors influencing the customer spending and buying decisions. As part of the investigation, customer beliefs, attitudes, perceived risks or benefits, demographical characteristics, and social influences will be highly valued for facilitating the formation of a greater insight. The Malaysian e-commerce practices adopted by the different companies of the distinct industries will be highlighted during the method undertaken for establishing the research. Such practices will generate a suitable scope for the research to gather essential knowledge about the relationships between the online sales generated by the customers and their spending behaviours in the online shopping process.
Nowadays, the massive expansion of the technology ensures internet as one of the significant shopping networks across the global business environment. Due to the rise of internet, e-commerce has continuously evolved to provide primary growth to the businesses over the past few years. From the context of Malaysia, increasing number of consumers is participating in the online shopping process according to their spending behaviours to drive the companies modifying their e-commerce strategies rapidly. Apart from that, the online selling trend is largely influenced by the participation of young generation of country in the online shopping aspect. Therefore, it can be significantly observed that the populations from the young demographic segment of Malaysia have their high level of purchasing power within the marketplace. The research is expected to reflect critical finding related to the attitudes and intensions of the online consumers driving them towards the online shopping to assist the e-retailers throughout the country.
The overall information outlined in the introductory section portrays the basic picture of online shopping process in Malaysia. From the overall understanding, it can be stated that the need to necessary research is still required in the particular field of e-commerce businesses within the selected country. The intended research should need to provide critical attention to determine the factors influencing the spending power of the consumers in the online shopping process. With the identified need,
As discussed by Wu et al. (2014), electronic commerce is essential for the buyers as well as the sellers in this global world of business. With the emergence internet and globalization, the idea of business has obtained a completely new dimension. Today most of the consumers worldwide are gradually opting for the trend of electrical commerce. There is a huge trend of online transaction in the fashion and jewellery sector. However, in the recent years even the traditional marketers like Tesco Plc, Wal-Mart etc. has identified the importance of the electronic marketing in the future consuming trend. In this particular scenario, the ideas of the online transaction or the electronic commerce and the other related issues have to be evaluated in a more elaborated manner. This particular idea has to be discussed in a number of ways. While discussing them, the related terms have to be defined in a clarified manner.
The idea of traditional transaction is the simplest way of conducting the business. According to Bhatti (2015), the traditional transaction includes the direct and physical dealing between the seller and the consumer. Here, the consumer goes to the outlets and purchase the product or service according to his or her choice and requirements. Here, the trader has the full opportunity to influence the purchase pattern and the choice of the customers. On the other hand, the consumer can obtain the advantage of being very sure about the quality and other aspects of the product. The traditional buying facility includes the physical communication between the consumers and the traders. It provides the customers a number of shopping advantages like, the physical examination of the product or the service before buying, absence of the delivery risk, guarantee issues etc. However, in the modern world of business, the traditional sales pattern is continuously losing its ground. The absence of flexibility and consumers’ freedom is making this particular transaction pattern outdated.
As opined by Akbar and James (2014), the idea of online shopping or Electronic commerce can be described as communicating the business information, upholding the business dealings, and conducting the business dealings with the help of telecommunications or the internet networks. However, while discussing the idea of electronic commerce, it can be defined in a bit altered way. As described by Lee et al. (2015), in recent busy social life people are unable to spend a huge time in making research and buy the best product according to their need and choices. This has mainly compelled them to choose the method of online transaction. In this regard, the idea of Electronic commerce can be described in a more precise manner. This facility of electronic commerce is being continuously popular because of its multidimensional facilities. Here, the online interface provides the consumers a facility of avoiding the time consuming shopping experience and a hassle free transaction. In this modern and competitive world of business, the consumers are consistently accepting this particular transaction method. Hence, it is being gradually inevitable for the traders to be present within the online interfaces for obtaining a competitive advantage. The electronic commerce is being increasingly popular because of its availability in the computer, Smart phones and other similar day-to-day systems.
In this context of online transaction another idea or term, “Online customer spending behaviour” claims a significant relevance. As discussed by Hsu et al. (2013), the idea of Online customer spending behaviour can be described as the practice of purchasing merchandise or services with the help of Internet. As opined by Clemeset al. (2014), there are a number of issues which are being responsible for the growing popularity of the idea of electronic commerce both among the buyers as well the operating companies. This spending behaviour includes the preferences of products purchased online and the factors influencing such buying pattern. In a number of studies, it has been discerned that most of the consumers love to make fun shopping through the online interface. On the other hand, the more necessary products are mostly bought through the traditional sales process. This particular idea has a significant influence on the development of the marketing as well as the operational strategies of the companies. Hence, the companies which are available in the web interfaces need to concentrate on this particular variable.
As described by Lianet al. (2014), Online customer reviews is another important issue in shaping the consumer behaviour in the online transaction sector. As opined by Luo et al. (2014), this particular term can be dignified as the strategy of providing the review about the product or service by the consumers. It is one the major strategies obtained by the companies operating online. As described by Shiau and Luo (2012), it is being helpful for the companies as well as the consumers in providing and getting a better shopping experience. In The strategy of online review, the customers are being provided the facility of airing their view about the product quality, service and other shopping experience to the world. It is being helpful in gathering knowledge about the product or services by the potential customers.
Fred Davis initially defined the idea of perceived usefulness (Heckman et al. 2014). As mentioned by Fred Davis, the degree of using or utilizing a particular technique typically depends on the scale to which an individual considers that using that particular system would increase the level of his/her job performance. This particular term can be described as one of the key variables of the theory of technology acceptance model as opined by Cheung and Vogel (2013), this theory explains the pattern of accepting and use a technology by the potential users. In this regard, the idea of “Perceived usefulness” is chiefly crucial. As opined by Lee and Lehto (2013), this model of technology acceptance suggests that when a new technology is being presented to the potential or target users, a variety of factors persuade their choice of the way and time of utilizing and accepting that particular technology.
Here, the idea of “Perceived usefulness” comes into the limelight. As opined by Park et al. (2012), the users perception about the utility of that particular technology regarding his job performance influences his decision about the usage of that particular technology. The extent to which the potential user trusts that particular technology to be useful to enhance his performance level, it he uses that technology only to that extent. In modern world of business, the web technology is consistently gaining ground. In the context of sales, the electronic transaction is being amazingly popular among the users. Here, the idea of perceived usefulness can be described with a new but significant outlook. As opined by Svendsenet al. (2013), the modern consumers have found that this particular technology has positively influenced their shopping experience. Now, with the help of the online transaction services they can obtain less time consuming and hassle free shopping experience. This has influenced their motivational level of using this particular technology over the traditional sales pattern.
Another chief variable of the model of Technology acceptance is “Perceived ease-of-use”. As opined by Fred Davis, along with the idea of perceived usefulness, the Perceived ease-of-use also determine the pattern and time of technology acceptance by the potential users. As mentioned by Heckman et al. (2014),Perceived ease-of-use or “PEOU” can be defined as the extent to which a potential user considers that using that particular system would be free from hassle and effort. as discussed by Choi and Chung (2013), if the potential users can be made believe that the new technology will decrease their previous efforts and hazards of performing a particular task, they will accept that technology in no time. In the context of the electronic transactions, the growing popularity of this technology can be discussed with this outlook. As opined by Lin et al. (2013), it cannot be ignored that, despite of having some perceived risks, this service of electronic commerce is obtaining an ever widening popularity. As mentioned by Aboelmaged and Gebba (2013), in this regard, the ease of using this particular platform can be identified as one of the major influencing factors. This platform has provided the users the time saving, flexible, easy and hassle from shopping experience. Thusthe Perceived ease-of-use of the electronic commerce has influenced the adaptation of this particular platform.
Thus, with the invention of internet, and the online interface for business transactions, the majority of the global customers are being directed towards the adaptation of the online shopping or electronic commerce. This electronic commerce service is continuously gaining ground over the traditional transaction process. Both the traders and the consumers are utilizing this trend of online transaction.
Consumer buying behaviour is one of the major subjects of the marketing and management studies. Quite a good number of studies have been done with the aim of understanding the factors influential in the alteration of the consumer buying behaviour. In the recent context of the continuous growth of electronic commerce, this discussion is being typically significant today. As discussed by Smith et al. (2013), there are a number of factors that influence the online consumer behaviour and the recent popularity of e-commerce over the traditional transaction. As opined by Suki (2015), the factors like information arrangement (technology acceptance model), promotion (Consumer Behaviour), and psychology (Flow and Environmental Psychology) etc. can be identified as some of the major factors influencing the online buying behaviour of the customers.
According to Wang and Li (2012), as described by the technology acceptance model, when the consumers are offered with an original technology, a number of issues persuade their judgment about using that technology. As described in this model, the perceived usefulness i.e. the buyers idea that the use of this particular strategy will be helpful in enhancing a positive shopping experience has influenced the buyers to opt for this particular transaction method (Venkateshet al. 2012). As described by Padilla-MeléNdezet al. (2013), the need of time management has influenced the consumers to identify the positive effect of the electronic commerce over the traditional buying procedure. On the other hand, the same drive is being influential for the companies like Wal-Mart, Tesco Plc. etc. in introducing their online interface. They have identified that the electronic commerce will be helpful for them in increasing their performance regarding the customer satisfaction and business development.
In addition to this, according to Morgan-Thomas and Veloutsou (2013), the service of Online customer reviews works in creating the idea that the particular system of online transaction is better for the consumers to obtain a good shopping experience. According to Park and Joon Kim (2013), the same theory of technologyacceptance, shares that another factor which influences the technology acceptance of the users is the “Perceived ease-of-use” i.e. the users idea of using that particular strategy would require less effort than before. As described by Myers and Schroeder (2014), the main factor behind the continuous growth of the electronic commerce is the convenience of marketing over the sales transaction. Here, the payment, service, review etc. are easier and user friendly than the sales transaction. The companies are also noticing that, by obtaining this particular strategy, they are providing the customers the mush required feel of freedom of choice. This is helping them to streamline the consumer choices and the offers suitable for them.
On the other hand, the Consumer Behaviour model also describes the changed pattern of business and the factors those affect online customer spending behaviour. As opined by Solomon (2014), consumer behaviour can be influenced by the consumer’s personal attitude, social impact, personal skills in the online interface, and other technology-oriented factors. These factors may include “perceived usefulness”, “perceived ease of use” and web site features of the company. As described by Solomonet al. (2013), the Consumer Behaviour model talks that the Online customer spending behaviour can also get influenced by the demographics, shopping orientation, channel information, apparent channel effectiveness etc. The promotional issues, the incentive for online transaction etc. are also being influential in shaping the online customer spending behaviour against sales transaction. As described by Schiffmanet al. (2013), the social status, attitude etc. are also helping the electrical commerce in gaining its ground. As mentioned by Cassidy (2013), the higher income, more educated, tech savvy people are more inclined to the online transaction than others are. On the other hand, the reason for preferring the electronic commerce to the traditional sales pattern has also described as time effectiveness, escaping of crowd, 24-hour shopping accessibility etc. by Montano et al. (2015).
In addition to this, with the help of the theory of environmental psychology, the growing preference of electronic commerce can also be discussed. As opined by Krasner (2013), the behavioural pattern or the online buying behaviour of the consumers can be influenced by the learning, informational and the social environments of the consumers. Here, it can be mentioned that the information grabbed by the online customer review regarding the product and services, the social influence i.e. the popularity of online shopping etc. are generating the preference of electrical commerce. As opined by Greaves et al. (2013), the availability of the online review provides the customers the psychological satisfaction of expressing their thought, on the other hand, the availability of the customer review helps the potential customers to shape their conception regarding the company product. It makes the consumers think that as the review given by the previous consumers, it must be authentic and convincible. This influences the psychological setup of the consumers.
As discussed by McDonald and Wearing (2013), this conception of authenticity compels the consumers to opt for the electronic transaction. It provides them the psychological satisfaction that this particular transaction pattern is free from the traders influence and directs them to choose the online transaction process. On the other hand, language used, arrangement of information, use of metaphors, size and contrast of letters are also influential in the psychological factors of the users. In addition to this, the theory of Flow psychology can also be described in this regard. As opined by Esteban et al. (2014), flow is considered as the absolute absorption in what one is doing. The love of using the innovative technologies can here be discerned as one of the motivating factors. As described by Mullen and Johnson (2013) these behavioural and psychological factors like motivation, inclination etc. cannot be ignored in determining the influencing factors of the consumers’ attitude towards the online shopping trend. The discussion regarding the flow psychology has become relevant in modern world of e- marketing. According to the theory of flow, the engagement of the users can be drawn to the level of “Flow”. Flow is assisted by the insight of equilibrium between the consumer’s expertise and challenges involved in web interaction (Hsu et al. 2012).
As mentioned by Rose et al. (2012), the online buyers can be explained as the ‘problem solvers’ as well as the ‘fun, fantasy, arousal, sensory stimulation, and enjoyment seekers’. This differentiation among the buyers can be discussed regarding the exploration of the relationship between factors affect online customer spending behaviour against sales transaction and the product or service pattern in influencing the online buying behavior of the consumers. The problem solvers merely shop online in order to acquire a specific product or service. On the other hand, the other category opts for the electronic commerce with the aim of acquiring the fun of online shopping. As described by El-Gohary (2012), the emergence of these fun shoppers has helped the online traders in the fashion and jewelry industry. This recent trend of electronic commerce has encouraged the traditional retailers to introduce the online shopping interface and utilize the new business trend.
The pattern of electronic commerce is constantly evolving. In the recent era of internet, the massive usage of the online transaction cannot be ignored. As discussed by Hsuet al. (2013), in 2010, Britain had enjoyed the biggest electronic commerce market share in the world. As mentioned by Mohapatra (2013), in 2013, the Czech Republic was emerged as the only European country where, the e- commerce had the biggest market share. As mentioned by Bowman-Amuah (2012), almost 24% of the nation’s total earnings is collected through the online channel. As opined by Waghmare (2012), China's web sales achieved the $253 billion in the previous half of 201, with 668 million users. This can be described as the grand success status of the electronic commerce.
The operation of the traditional and the e commerce transaction are typically different from each other. As opined by Chiu et al. (2014), the traditional transaction system include hiring the sales executive, managers and other stuffs. They are directly concerned with the sales pattern and status. It includes the direct communication and interaction between the traders and the consumers. As described by White et al. (2014), on the other hand, there are diverse patterns of business operation in the electronic commerce. These can be described as; business to business, consumer to business, and business to consumers and last but not the least, consumer to consumer. In the recent years, the idea of business to consumer is being typically popular in the business world. As opined by Da Costa (2016), while the payment methods in the traditional transaction process only include the direct payment, the electrical commerce offers a number of payment ways. These are; credit card, net banking, wore transfer, cash on delivery, checks and money orders etc. As opined by Savrulet al. (2014), these diverse payment methods can also be identified as one of the major issues of the recent popularity of the electronic commerce.
Along with the various payment facilities, the online transaction offers more products and services than the traditional sales (Zhu et al.2014). As described by Veitet al. (2014), this particular transaction pattern offers the consumers more choices in products and vendors. This advantage is being helpful in accelerating the popularity and acceptance of the e-commerce services. Moreover, the online interfaces offer the customers cheaper products than the physical stores. As mentioned by AfsharJahanshahiet al. (2013), the online presence cuts down the internal and operational cost of the companies. As described by Holmes et al. (2013), the electronic marketing can be identified more inexpensive than the traditional marketing. It helps the company to reduce its product cost and make the service popular among the consumers. Moreover, the absence of the intermediary in the electronic commerce provides the companies the opportunity to focus more on the specific customer needs.
As opined by Thamizhvanan and Xavier (2013), the adopted one-to-one marketing strategy of web transaction helps the consumer in obtaining knowledge of the consumer needs and thus paving the way towards consumer satisfaction. The online transaction service offers the consumers a 24- hours shopping experience and the consumers can obtain the facility of their choice able stores from anywhere in the world. As opined by Sintonen and Immonen (2013), the electronic commerce has served the consumer need in a number of ways. This has encouraged the traditional retailers to introduce the online presence of their offerings. With the growth and advancement of technology, the idea of electronic marketing will only be encouraged. As described by Abu-Al-Aish and Love (2013), the development of the new age technologies will make the traditional sales procedure stagnant.
However, the operation of this particular technique faces a few major disadvantages. In the less developed world, not all the customers are connected or familiar to the internet service. On the other hand, there is a sustainable threat regarding the data theft in the online interface. Moreover, there are trust issues in the electronic marketing. As described by Stuckenschmidt and Jannach (2015), as, the consumer cannot interact with any reliable entity during his/her online purchase, there is no credible guarantee over his/her purchases. However, in spite of these above discussed disadvantages, the electronic marketing has a bright future indeed.
Therefore, it can be concluded that the operational issues are also being influential in adopting the electronic commerce against the traditional sales process.
A number of academic and other studies have been done on this particular topic. With the help of the research works, a general idea can be obtained over the factors influences the online consumer behaviors against the sales transaction.
In the article titled “Factors influencing consumers' online shopping in China” (2013), the researchers, Gong et al. (2013), have described that the consumer choice of electrical commerce has been influenced mostly by the demographic as well as the social issues like customers age, income, education and marital status etc. With the purpose of developing, an understanding of the influencing factors in the adoption of online transaction by the consumers of China; the researchers have conducted a nationwide online survey among 503 respondents. According to Gong et al. (2013), this study has indicated that the personal and sociological factors are mostly influential in determining the choice of electronic transaction services. As opined by Gong et al. (2013), this study and its findings have indicated that the traditional retailers need to focus on the electronic marketing in this competitive world of business. The researchers have recommended that the companies need to understand the individual need of the customers and provide those services through their online interface. As mentioned by Gong et al. (2013), the E?marketers must incorporate attractive and safety features, which would be able to enhance the online shopping competence of the companies. However, ion the study of Gong et al. (2013), the researchers have found some research limitations. In addition, according to them, upcoming researches should employ actual web procure as dependent variable. These researches should investigate the influence of product description, traders and intermediate features, as well as the peripheral influences on online buying behaviour.
In the article titled “Factors influencing Internet shopping value and customer repurchase intention”, (2012), the researchers have empirically examined the impact of different electronic shopping website merits on the practical and hedonic values of electronic commerce. They have also made an exploration over the apparent level of electronic commerce value on consumer contentment and repurchase objective. The research was performed based on the structural equation investigation with 293 observations. The samples were from two different earnings groups (employees and students). As discussed by Kim et al. (2012), the service and the quality of system are typically influencing the practical shopping value of the online interface. On the other hand, the “information and service qualities” (the attractive pricing strategies i.e. offers and discounts, vouchers etc.; the payment pattern, the delivery services, the guarantee issues etc.) are closely related to the hedonic values of the idea and choice of the electronic commerce. As opined by Kim et al. (2012), these result imply that the service quality is one of the significant players in escalating both serviceable and hedonic online consumer behaviour. The researchers have also declared that the effect of quality issues on online purchasing values and following repurchase objectives differ among the different income groups. These findings suggest that the information arrangement and psychological factors are typically influential in shaping online spending behaviour against sales.
On the other hand, the article, named “An Analysis of Factors Affecting on Online Shopping Behavior of Consumers” (2012), was typically directed towards exploring the factors influential in developing the popularity of electronic commerce over traditional sales. The study was done on the context of Iran with the help of structured questionnaires. The researchers have distributed 200 questionnaires among the online stores of Iran to explore the objectives and examine the hypothesis of the study. Respondents were the consumers of those online stores. They were randomly selected. However, the research has explored the issues, which are influential in restricting the use of the electronic commerce. As discussed before, there are some risk and trust factors in the operation of the electronic commerce. The risk of data theft cannot be ignored in this regard. As opined Javadiet al. (2012), there study has explored that the financial as well as the non-delivery risks are negatively influencing the attitude towards the electronic shopping facility. As discussed by Javadiet al. (2012), here, the traditional sales procedures are getting more advantage over the electronic commerce. Here, the psychological impact must be declared as one of the major issues. As recommended by Javadiet al. (2012), the companies, which are providing the online interface for their dealings, should build their website safer and guarantee customers definite, safe and timely delivery of their purchases.
On the other hand, According to Javadiet al. (2012), the field specific innovativeness as well as the subjective norms are also influencing the attitude towards electronic commerce. Here, the sociological and environmental influences cannot be ignored. The users suggest and influence others and the potential users to opt for the electronic commerce. It is being helpful in adopting the particular shopping and transaction pattern. As discussed by Javadiet al. (2012), users personal attitude is typically influential in adopting the electronic transaction services over the traditional sales pattern. They have also suggested using the word of mouth marketing strategy to the retailers. However, as discussed by Javadiet al. (2012), the research has also a few limitations within it. Because of the time constrains the researchers failed to examine other potential factors, which may have some significant influence in shaping the online consumer behaviour. On the other hand, their usage of questionnaire as the tool of data collection has restricted the respondents to air their exact view. Moreover, as the research is executed, the researchers have declared it one of the limitations of the research. They have discerned that the respondents of other nations may have reacted in different manner. In addition, as mentioned by Javadiet al. (2012), the data analysis process has not explored the complete picture of the scenario. However, this particular research has provided a wide range of knowledge regarding the positively as well as negatively influencing factors on adaptation of electronic commerce.
Another research work titled “Factors influencing consumers’ attitude towards e-commerce purchases through online shopping” (2012), is also dedicated towards exploring the “factors influencing consumers’ attitude towards e-commerce purchases through online shopping”. Here in this research, the researchers have also investigated how the demographic (age, sex etc.), social (income and occupation, demonstration effect etc.), pattern of web purchase (types of products, previous experience and time spent on internet) and last but not the least purchase perception (awareness of the product, consumer’s service and risk) influence the customers’ attitude towards electronic commerce. As opined by Jusoh and Ling (2012), unlike others, this study has explored that the age of the potential buyer or users do not have any effect on consumers’ attitude in adopting the electronic transaction services. As discussed by Jusoh and Ling (2012), the research has further explained the social factors like, income level has a significant effect in shaping the consumers’ attitude towards the electronic commerce. However, the research has failed to establish any impact of the occupational pattern of the customers on their attitude towards the usage of the online transaction method.
In addition to this, Jusoh and Ling (2012) have described that the model of online purchase (pattern of goods) selected by the respondents do not have impact on the customers’ attitude to conduct electronic commerce transactions through web interface. However, the same study has suggested that the previous web purchase experience and product perception have a significant impact on the customers’ attitude towards online shopping. However, unlike other prior discussed studies, this particular research work has explored that consumers’ risk, customers’ service and the average time spent on web interfaces do not have any significant impact on the consumers’ attitude towards the adaptation of the electronic commerce. In this context, the researchers have recommended some significant alternatives. As recommended by Jusoh and Ling (2012), the limitation of the study i.e. the failure of the research work in examining more than three factors influential in shaping the customers’ attitude towards electronic commerce over the traditional sales must be eliminated by the further research works.
The subsequent studies must address and examine the factors those are not discussed in this particular work. This will help the future researchers to understand the other significant factors influential in the trend of growing popularity of electronic commerce among the potential buyers. Moreover, as mentioned by Jusoh and Ling (2012), the contextual limitation of the study, i.e. the potentiality of the result to be different in a different context like, a capital city; must be avoided by the future researchers to obtain a complete understanding of the influential factors.
Thus, these above discussed research papers are providing a significant insight into the potential factors affecting the online spending behaviour against sales.
The above study concludes that there are a number of factors, which are influencing the users mostly the buyers for using the electronic commerce for their transaction. As discussed before, the technological or informational influence, social and psychological influences are instrumental in encouraging the recent popularity of the electronic commerce. This whole idea can be framed as the following:
Therefore, from the above discussed literatures and the conceptual framework it can be concluded that the various internal (personal) and peripheral factors are playing a significant role in shaping the online consumer spending behaviour against traditional sales pattern. From this above discussion the following hypothesises can be exerted:
H1: Alternative Hypothesis: The psychological, social and demographic factors are affecting the online spending behaviour of the consumers against sales.
H2: Null Hypothesis: The psychological, social and demographic factors are not affecting the online spending behaviour of the consumers against sales.
In the course of this study, the researcher has examined the validity of these hypothesises.
Research methodology indicates an integral part of the research, as it facilitates the researcher to investigate the research topic in an efficient manner. With the involvement of research methodology, the researcher can identify the research errors from the project. In the methodology section, the researcher comprises several factors including philosophical paradigm, approach and design. The particular chapter highlights different tools and techniques, which facilitate the researcher to investigate the project in a systematic manner. In this context, the researcher employed different tools and techniques in the research for evaluating different factors affecting online spending behavior against sales. The researcher has implemented quantitative analysis for obtaining information from respondents. Through the engagement of quantitative analysis, the researcher has identified the issues affecting online spending behavior against sales.
The researcher has engaged the post-positivism philosophy that facilitates to execute the logical information of the topic. In this context, the researcher has chosen the deductive approach along with the descriptive research design. The researcher has involved the non-probability sampling techniques in order to select the respondents in the research. The data collection method has facilitated the researcher to evaluate the issues affecting the spending behavior of customers on the online platform. The researcher has selected both primary and secondary data collection method in the research. In the sampling size, the researcher has introduced the non-probability sampling techniques to identify the respondents. The researcher has selected 150 respondents in the research for accumulating data and information on the research topic. The researcher has included the sufficient time for respondents to provide brief information on the research topic. With the involvement of the survey questionnaires, the researcher is able to collect data on the research topic based on the current market statistics.
Research philosophy reflects the author’s important assumptions on the research topic. However, the assumptions are based on the research strategy. Generally, research philosophies engage wide range of disciplines. Research philosophy can be categorized into three distinct sections including positivism, interpretivism and realism. Positivism research philosophy allows the researcher to test research hypothesis in an efficient manner. Moreover, it allows the researcher to perform research experiments providing the research outcome. The research outcomes are interpreted with the help of logical arguments and mathematical application (Bharathiand Kumar2013). On the other hand, the interpretivism paradigm is associated with the social domain. The realism paradigm allows the researcher to interpret the research outcome with the set of specific normative rules. Consequently, it makes the research work feasible, valid and authenticate.
In this context, the researcher has employed the positivism research philosophy for increasing the logical information on the research topic. With the involvement of the positivism philosophy, the researcher would be able to formulate hypothesis and test them in an appropriate manner. However, the positivism philosophy allows the researcher to involve large sample size for obtaining information on the research topic.
Research approach can be divided into two groups including inductive and deductive research approach. The researcher can obtain the opportunity to tests the validity of the assumptions by employing the deductive approach. On the other hand, the inductive approach facilitates in emerging new theories in the research project. In this context, the researcher has selected the deductive research approach in order to include the quantitative analysis in the research project. Generally, inductive research approach facilitates the researcher to accumulate qualitative data on the research topic. Hence, the deductive approach is more reliable for this particular research topic. In the deductive method, the measures of control are involved in the project to ensure data validation. In this context, deductive approach has facilitated the researcher to evaluate the issues affecting spending behavior of the customers on the online platform. Moreover, deductive approach plays an important role in analyzingdifferent theories on the research topic. The deductive approach facilitates the researcher to enhance the knowledge on the research topic.
Research design facilitates the researcher to enhance the knowledge and information on the research topic. With the involvement of the research design, the researcher can identify proper data and technical tools to gain knowledge on the research topic. There are three types of research design including explanatory, exploratory and descriptive design. Explanatory research design facilitates in evaluating different types of incident. The researcher can evaluate the relevant data and information on the research topic through exploratory research design. Descriptive research design contributes the research in gaining the knowledge on the research topic of factors affecting online spending behavior against sales.
In this context, the researcher includes the descriptive research design, as it facilitates to define different application, approaches and theories on the online business communication. Consequently, it contributes in enhancing the information on the research topic. Descriptive research design provides effective analysis of the relevant data collected from different sources.
Data collection plays an important role in the research methodology. It facilitates in increasing the practical knowledge on the research topic. The researcher involves different tools and techniques for accumulating data from various sources. In this context, the researcher includes both primary and secondary data collection method for enhancing the knowledge of the research topic. Secondary research data have facilitated the researcher in employing information in the literature review. On the other hand, the researcher has employed the primary data for understanding the current situation of e-commerce marketing. The researcher has employed books, journals and other online sites for accumulating information on the research topic(Nakakita2013). Through the engagement of the secondary data, the researcher has successfully utilized previous research outcomes. On the other hand, the researcher has engaged quantitative data collection for executing the primary research method. Although the secondary data collection can be executed within the short timeline, it often fails to provide reliable data on the research topic due to different challenges.
Data analysis can be divided into two sections including qualitative and quantitative analysis. In recent years, most researchers prefer mixed method (both qualitative and quantitative) to analyze the research topic in an efficient manner. Consequently, it facilitates to provide the reliable data on the research topic. Qualitative research data provides adequate knowledge and information on the research topic. Through the engagement of the qualitative analysis, the researcher can identify the rationale of the research topic. On the other hand, the quantitative analysis plays an important role for obtaining information on the research topic. In the qualitative analysis, the researcher accumulates information based on the current market situation(Pollack2013). The researcher has engaged 100 potential respondents for accumulating quantitative data. The researcher has involved the survey questionnaires for accumulating information on the research topic.
Sampling technique is a systematic procedure of investigating necessary data and information amidst a large number of populations. In order to collect necessary information the researcher has involved a specific part among the entire population for acquiring knowledge regarding the research topic(Rondeauet al. 2012). Sampling techniqueis constituted with two different types. These include probability sampling technique and non-probability sampling techniques. Probability sampling technique is popularly known as random sampling method.
Probability sampling method tends to engage a large number of people from different divisions. On the other hand, non-probability sampling technique has been followed by involving a specific number of people from a particular area. In this specific research, the researcher has selected probability-sampling technique in order to accomplish the entire research work successfully.
With the help of probability sampling technique, the researcher has engaged a large number of Malaysian online customers for collecting their feedback. The researcher has selected 150 online customers as a sample size. Among those customers, the researcher has received the response of 100 customers only. The researcher has thrown necessary questionnaires to the customers in order to gather feedback from them. In this particular research, the researcher has followed only quantitative questionnaires in get an immediate feedback from the respondents of Malaysia.
The primary responsibility of a researcher is to accomplish the entire project in a systematic way. Conducting the entire process of research effectively is challenging for every researcher. Ethical consideration is a tool based on which the researcher likes to maintain some of the major ethics, values and regulations at the time of collecting sufficient data and information(S?veanu, Abrudan and Giurgiu 2012). The important regulations that the research has followed during the data collection include data protection act and right to information act primarily. Data protection act implies that the researcher should never disclose any information provided by the participants in front of any third party without receiving the permission of the concerned person. On the other hand, right to information act indicates that the researcher has to be answerable to participants in order to solve any kind of query. Participants before providing any data to the researcher have every right to know about the aims and objectives of the research work. The researcher should clarify every participant clearly about the purpose of conducting this particular research work.
In addition, the researcher should never force any participant to provide data and information to the researcher. The data that have been collected from various sources is very much authentic and real. Therefore, in this specific research, the researcher has tried to maintain ethics and values at the time of collecting relevant data and information.
This particular research is not devoid of its some of its major limitations. The researcher has faced immense difficulties to conduct the entire project within limited span of time. Therefore, the researcher has faced numerous challenges to collect sufficient data and information within this short period(Siangchokyooand Sousa-Poza2012). Moreover, due to the time limit, the researcher has failed to conduct an effective verification of different data sources. After collecting the data from 100 Malaysian customers, the researcher did not get the opportunity to verify those data. As a result, it affects the ethics and values of the entire research process highly.
Therefore, data verification is one of the most important parts of conducting a successful research work. In addition, the researcher has to face immense difficulties while analysing the data properly. Data analysis is one of the most effective parts of the research. The participants who have been involved in the survey procedure have provided biased questions. Therefore, the researcher was unable to come into a sound conclusion. In order to accomplish the entire research work successfully, an earnest co-operation from the participants is highly needed. Therefore, the researcher should form such kind of questionnaires to the participants that the participants do not get the scope to maintain biasness in their answers. Otherwise, the researcher would never be able to accomplish the entire project accurately.
This particular chapter has dealt with research methodology primarily. Research methodology is the systematic procedure based on which the researcher likes to collect necessary data and information for the particular research issue. In order to collect real data, the researcher has followed appropriate research philosophy, approach and design. In this specific research, the researcher has selected deductive approach and descriptive research design. Deductive approach is based on case study. Therefore, the researcher has conducted effective case study on the Malaysian online shops and the response of the customers.
In this particular project, the researcher has collected quantitative data analysis. Quantitative data enables the researcher to gather necessary information with the help of survey process. The researcher has formed fifteen survey questionnaires in the data an
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