Consumer Behavior Towards Online Shopping Of Electronics .

2y ago
144 Views
2 Downloads
488.11 KB
60 Pages
Last View : 17d ago
Last Download : 2m ago
Upload by : Cannon Runnels
Transcription

1ADIL BASHIRConsumer Behavior towards online shopping of electronics inPakistanThesisWinter 2013MBA International Business ManagementSeinäjoen ammattikorkeakouluSeinäjoki University of Applied sciences

2SEINÄJOKI UNIVERSITY OF APPLIED SCIENCESThesis AbstractFaculty: Seinäjoki Business SchoolDegree programme: International Business ManagementSpecialisation: International Marketing ManagementAuthor: Adil BashirTitle of thesis: Consumer behavior towards online shopping of electronics inPakistanSupervisor: Ville-Pekka MakelainenYear: 2013Pages: 60Number of appendices: 1E-commerce has made life simple and innovative of individuals and groups;consumer Behavior in online shopping is different from the physical market wherehe has access to see the product.The purpose of the research was to study the consumer behavior in onlineshopping of electronics especially in Pakistan. The main research question inthesis is how consumers behave while shopping online. Primary data wascollected through the questionnaire survey and by emails from personal contactsin two major cities of Pakistan.Price, time saving and convenience were identified as important factors which leadto certain buying behavior in online shopping. The www is rebuild around peoplewhere social circles influence and lead to online buying.Keywords: Consumer behavior, online shopping in Pakistan, E-commerce

3TABLE OF CONTENTSIndex of Figures . 5Index of Tables . 61.INTRODUCTION . 81.1 Background . 81.1.1 Consumer Behavior . 81.1.2 E-Commerce / online shopping. 91.1.3 Consumer Behavior over Internet . 101.2 Problem . 141.3 Research Purpose. 161.4 Research Questionnaire. 161.5 Limitation . 171.6 Structure of thesis . 182.THEORY. 192.1 Introduction of theories related to online consumer behavior . 192.2 Online buying behavior. 202.3 Consumer mind set model in online shopping. 202.4 Factor predicting online shopping. 222.5 Goal oriented online shopping behavior . 24

42.6 Experimental online shopping behavior. 252.7 Factors influence online consumer behavior . 252.8 Online purchase intention. 262.8.1 Human Computer Interaction (HCI) . 262.8.2 Customer concerns in online shopping (CCOS) . 272.8.3 Consumer characteristics . 272.9 Issues from the theories influencing online consumer behavior . 283.IMPLEMENTATION OF RESEARCH METHODS . 293.1 Choice of Methodology. 293.2 Research Approach. 303.3 Research Philosophy . 303.4 Research Strategy. 313.5 Sample . 313.6 Non Probability and Convenience Sampling . 323.7 Questionnaire format . 324.RESULTS . 355.CONCLUSION. 516.BIBLIOGRAPHY . 54

5APPENDIX 1 .58Index of FiguresFigure 1: Consumers Spend More Time online. 10Figure 2: Product & services intent to purchase online globally . 12Figure 3: Structure of the study. 18Figure 4: Result of Path Analysis . 23Figure 5: Forces influencing the online consumer’s behavior . 26Figure 6: Online Purchase Intention Model. 27Figure 7: Gender analysis . 36Figure 8: Educational Background of respondents . 38Figure 9: Income Distribution Among respondents . 39Figure 10: Analysis of frequently buy online . 40Figure 11: Analysis of Duration of online shopping . 41Figure 12: Product Segmentation . 42Figure 13: Visit retail store before making online purchasing. 43Figure 14: Purchase electronic products online in a year . 44Figure 15: Get an idea to buy electronic products online . 45Figure 16: Visit Online Store before purchasing . 46

6Figure 17: Analysis of Critical Factors affecting consumer mind. 47Figure 18: Analysis Consumer behavior after receiving the product . 49Figure 19: Main barriers in online shopping . 50Index of TablesTable 1: Online Planned Spending by Age Segments . 11Table 2: Top global sites by % Active Reach . 13Table 3: Gender Analysis. 36Table 4: Age Analysis . 37Table 5: Education Analysis. 38Table 6: Income Distribution among respondents. 39Table 7: Frequently buy online. 40Table 8: How long have been doing online shopping. 41Table 9: Buy online products segmentations . 42Table 10: Visit retail store before purchasing online . 43Table 11: How many times electronic products buy online in a year. 44Table 12: How get idea of buying online electronic product. 45

7Table 13: Visit different online stores before actual purchasing . 46Table 14: Crucial Factor affecting Consumer mind in Pakistan . 47Table 15: After receiving the Product. 49Table 16: Main barriers in Online shopping . 50

81. INTRODUCTIONThis section will provide all information regarding the thesis background, purpose,research questions, limitations of survey and theories. It presents the introductionof consumer behavior, online shopping, consumer behavior towards onlineshopping and online shopping of electronic goods in Pakistan.1.1 Background1.1.1 Consumer Behavior“Consumer behavior is the study of individuals, groups, or organizations and theprocesses they use to select, secure, and dispose of products, services,experiences, or ideas to satisfy needs and the impacts that these processes haveon the consumer and society. “ (Kuester, 2012)With the reference of above cite; Consumer behavior of every individual is differentfrom other depending on buying choices which is influenced by buying habits andchoices that are turn tampered by psychological and social drivers that affectpurchase decision process. (Brassington, F. and Pettitt, S., 2000)“We’re not aware of changing our minds even when we do change our minds. Andmost people, after they change their minds, reconstruct their past opinion — theybelieve they always thought that.” (KEYS, 2011)As quoted above, consumer behavior about decision making is difficult to defineand is a system of short cuts and rule of thumb which is unpredictable. The shortcuts in decision making vary from person to person and focusing on the pastexperience of consumers; we can predict the future trends by bringing profitableproducts and services into the market. In this modern world, the popularity ofinteractive media like the World Wide Web is increasing day by day with rapidpace. With reference to marketing it is continuously realized that the main twofactorsobserved due to WWW are 1)Most of the companies are doing their

9business online and make their website as showroom of their product andservices. 2)Fast increment of consumer segments due to increase needs anddemand including online shopping as well. (Ha ubl, 2000, p. 5).1.1.2 E-Commerce / online shoppingInternet makes life simple and innovative. People are doing business online andtrade has become more easy and fast due to this. Internet provides new ways topromote business. Website becomes the essence of online business as to showtheir services and products. Internet gathers all competitors and consumers in oneplace. It brings new lane to promote, advertise products and services in market(Barry Silverstein, 2002, p. 3).Total global E-commerce sale in 2011 have grown to Euro 690 billion (USD 961billion) and recorded an increase of 20 % with an estimation of increase in thecoming years and to cross the 1 trillion Euro mark in 2013. Asia pacific region isleading in terms of growth as compared to mature markets like US, UK, Japan andEuropean countries. Asia Pacific recorded 130 % growth specially China in 2011.The online retailing is becoming an integral part of an economy and country andworldwide increasingly seeing trust and confidence in purchasing online.(AadWeening, 2012)“E-commerce is benefiting from several positive trends, including the continuedrollout of broadband, increasing user comfort shopping online and the decline ofcertain brick-and-mortar retailers,” (Imran Khan, 2011, P.416 ).Online consumers are always seeking new products, new attractiveness and themost important thing being price compatibility with their budget. The internet is thebest way to save time and money through purchasing online within their range ofbudget at home or in anywhere. Online consumers don’t have limits to onlineshopping. They also use internet for comparison of prices of goods and services,news, visit social networks and search information and so on. The recession has

10so much impact on online consumer behavior (Rodriguez, 2009, p. 3). Onlineshopping behavior depends oonn four factors such as Shopping motives, personalityvariables, internet knowledge and experience and last factor is shoppingincentives. These are key determinants to influence the behavior of onlineconsumers. Online seekers are the main sources of onlineonline shopping. Onlineshoppers always want to seek information within few clicks and reach to the mostrelevant information according to their requirements such as competitive brands,best price offers, product specification and consumer word-of-mouthwordmouth (Yuan GGao,2005, p. 32).1.1.3 Consumer Behavior over InternetAccording to Consumer Behavior Report, “ One in four consumers indicated thatthey spend more time online because of the tough economy and 53 percent ofconsumers said they spend about the same amountamount of time online”.Figure 1: Consumers Spend More Time online(AdaptedAdapted from Price Grabber 2009 survey)surveyAccording to PriceGrabber survey, consumers are divided by age wise and thentake into account the online shopping to analysis the scenario. After sursurvey it isclearly shown that older agedage online consumers are totally different from youngeronline consumers.Whyhy is it that? The answer is that older online consumers have

11the sense of saving and purchasing while younger onlonlineine consumers have noexperience and don’t have enough maturity to buy goodsgood with planned spending(Rodriguez, 2009). With the help of below table, it is clearly demonstrated.demonstrateTable 1: Online Planned Spending by Age Segments(Adapted from Price Grabber 2009 Survey)The online shopping trend around the world spread very fast. “The NeilsonCompany conducted a survey in 2010 and polled over 27,000 internet users in 55market from Asia Pacific, Europe, Middle East, North America andand South Americato look at how consumers shop online” (Nielson, 2010). Globally online shoppingis made on books and cloths as per survey data. Most people are interested topurchase and bought usually books and cloths. Airline tickets, bookbooks, tours andhotel reservations are also commonly bought through internet which indicates theprogress and stability of economy.According to Neilson survey, 24 percent are concerned to purchased online ticketfor airlines while 17 percent made hotel reservations due to which the globallyimpact is that travel arrangements increased online 7 percentage point and 9

12percentage in 2010 respectively. Other goods such as electronic equipment,cosmetics/nutrition supplies, event tickets, computer hardware, video/ DVD’s/gamess and groceries are also tagged for online purchasing globally (Nielson,2010).Figure 2: Product & services intent to purchase online globallyNielson Company explains the top 10 Global sites by % Active reach in theseranking, Google is in first position then Windows then Facebook which is the socialnetwork website. According Neilson survey 47% online consumer in Middle East/Africa/ Pakistan indicatendicate that they have online purchasing experience. It is thelowest ranking among any other region in the world. According to this survey

13report, purchasing of Electronic goods are in fourth position which is the highestranking.Table 2: Top global sites by % Active Reach1.1.4 Online Shopping in PakistanPakistan is considered to be world’s 2nd slowest adopter in online shopping trendsover internet. In Pakistan, online shoppers look into computer hardware 25% andclothing 18% and rest are saying that they are not willing to or plan to make onlinepurchasinging in the next six months 38%. In Pakistan, social media does not play anactive part to influence online consumers. The other important factor is that themost of the people in this region have negative experience in online shopping(Nielson, 2010).Onlineine shopping trend starstarteded in Pakistan by sending flowers, gifts cakes onvalentine days, new years and in birthday occasion is now in the mature sstage.The people of Pakistan do avoid putting their financial information such as bankinformation and credit cards information to avoid frauds and stealing identity.Therefore, in order to avoid this risk and hesitate to send money online beforephysical inspection. One more reason is that the bank support and otherconvenient system like PayPal that is not avaiavailable.lable. Due to this, entrepreneurs arelosing 20% to 25% business (Pakistan Today, 2011). “Businesses need to do

14more to shift consumers from shopping malls to virtual malls” (Pakistan Today,2011).Consumer behavior in electronics environment is critical as compared to physicalworld and crucial understanding can be examined if the factors that affect thepurchase decisions are ignored and unambiguous. Online consumers fear theopportunity to physically examine the product which is specifically regarded asinfluential factor in purchase decision. Therefore, consumer behavioral pattern inonline shopping can be fundamentally different from traditional environment.(Sajjad, May 2012)1.2 ProblemThere are billions of people online and each of them is potential online consumerfor a company which providing online services and goods. Now a day, there arerapid and fast developments in information technologies industry. According toKeynote, “Online retail competition is heating up as consumer’s behavior savvieron the Web”. Competition increases day by day due to increase attention ofconsumers towards online shopping. The best retailer is based on theirexperiences on web. Online consumers also increase their expectations and theyare set by their experience with online retailers across the Web. Brown says in hisinterview, “It is becoming increasingly imperative for retailers to provide a stronglypositive online shopping experience”. It is very important to know that what kind ofthings and strategies help to increase sales in this fierce competition in marketwith high expectation of online consumers. “Our research shows that the sites thatperform best in customer experience have a significant advantage in driving onlinesales.”To enhance and attract online customer it is very important to know about theirbehavior and understand what they require and need. Since online shopping is thenew medium of shopping with new demands of consumers. All customers havetheir own desires and demands for products so that it is very crucial for all online

15retailers to identify and know about their online consumers (Hasslinger, 2007, p.18).Online shopping and online consumer behavior depend on these factors such asWebsite visibility, online shops credibility, information comparison, paymentsecurity, privacy, website interface, convenient time, education level andexperience of network (Na Wang 1, 2008, p. 4). Culture, social, personal,psychological behavior also affects the consumer behavior in online shopping.Online shopping is based on individual to individual perceptions.Consumer behavior in online shopping and in traditional shopping is very different.Both include social, cultural, personal and psychology etc. factors but traditionalshopping is much more influenced by these factors as compared to onlineshopping. The reason is that online consumers are restricting with social culturalenvironment and psychological factors. Online shopping basically based onindividual thinking point of view and his personal perceptions

Title of thesis: Consumer behavior towards online shopping of electronics in Pakistan Supervisor: Ville-Pekka Makelainen Year: 2013 Pages: 60 Number of appendices: 1 E-commerce has made life simple and innovative of individuals and groups; consumer Behavior in on

Related Documents:

Online shopping market by sector. 3 : 2.3 Online shopping market by product category 5 2.4 . Leading retailers in the online shopping market : 6 . 2.5 Forecasts of the online shopping market 7 2.6 : Consumer use of online shopping services . 7 : 2.7 Online non-food shopping market 8 2.8 . Online grocery shopping market: 10 . 2.8.1

consumer's shopping behavior. Conformity behavior is a universal phenomenon in social psychology. Its essence is the change of attitude or behavior of individuals under group pressure [8]. In consumer behavior, herd behavior is mainly manifested in a shopping behavior in which a consumer individual is influenced by the

Consumer Markets and Consumer Buying Behavior CB-2 Consumer Buying Behavior Consumer behavior is the actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions Consumer Buying Behavior refers t

society poses using online shopping and also its advantages over traditional Shopping. Keywords: Online Shopping, e-commerce, Traditional Shopping etc. INTRODUCTION Online shopping is a trade dealing with e-commerce. The act of purchasing products or services over the internet is kno

product-receiving stage in apparel online shopping. This study is beneficial to consumer behavior researchers and apparel e-tailers by identifying the roles of brand image and product performance in apparel online shopping. Based on the results, marketing strategies in apparel online shopping were provided.

Research also demonstrated that online shopping is better than conventional shopping due to convenience and ease of use (Nazir et al., 2012). In a previous study done on adoption and usage of online shopping, it was established that attitude towards online shopping depends upon the view of the consumers regarding the activities carried out on

Where Is My Shopping Cart? 1. Click the Shop icon, hover over My Carts And Orders, and click View Draft Shopping Carts. 2. To open a specific shopping cart, click the appropriate Shopping Cart Name. 3. To access your active shopping cart, click the shopping cart Quick Link (top right). Click the View My Cart button. Add Prevailing Wage Checkbox

Tourism and Hospitality Terms published in 1996 according to which Cultural tourism: General term referring to leisure trav el motivated by one or more aspects of the culture of a particular area. ('Dictionary of Travel, Tour ism and Hospitality Terms', 1996). One of the most diverse and specific definitions from the 1990s is provided by ICOMOS (International Scientific Committee on Cultural .