Consumer Attitude and Behavior towards Online Shopping - Research Paper Example

CONSUMER ATTITUDE AND BEHAVIOR TOWARDS ONLINE SHOPPING Introduction The advent of e-commerce as a feasible and competitive way of conducting business has spurred a wave of transformation on a global scale. With the increasingly ease of accessing the Internet, retailers have had to contend with the fact that the future of shopping is moving online. Similarly, other goods and service providers have moved in to embrace the benefits of carrying out trade online. The vast majority of shoppers have shifted to online shopping to procure clothes, books, hotel reservations, and other electronic gadgets (Soopramanien 2010, p. 341). This has necessitated organizations to integrate e-marketing into their marketing strategies in order to widen their customer base (Mahmood, Bagchi & Ford 2004). One of the key reasons as to why online shopping has received such a tremendously positive and optimistic outlook in many industries is because of the relatively cheaper transaction costs. Compared to the cost of running a physical office and managing human resource, running a website is more cost effective and there is a significant cut back on the price of hiring personnel (Kotler 2003). Consequently, this has translated to lowering the prices of online goods and thus providing a competitive advantage over competitors. Moreover, the access to a large variety of alternative goods has made it possible for shoppers to access and compare the different pricing and quality of products and service (Peter & Olson 2002, p. 53). This dissemination of information certainly enables buyers to make more informed decisions as they can select the product that best fits their needs. However perhaps the greatest benefit associated with e-commerce is the ability of marketers to strategically advertise their products. The integration of ads in the use of Internet has opened up a wide market of potential buyer and this has facilitated the rapid growth in online business (Na Li & Ping 2002). In respect to online shopping, consumer attitude espouses on the motivations that guide a potential customer to seek the services of one website and not the other. On the other hand, consumer behavior refers to the systematic process that shoppers go through when procuring a product online. This moves sequentially from identifying the product, to looking for the product vendors from different websites. During this stage, the customers essentially engage in research as they look for the most affordable product or one that fits their needs. After selection, they can then proceed with the purchase (Mojtaba et al. 2012). The main aim of this paper, therefore, is to elaborate on the various attitudes and behavior that consumers hold toward online shopping. The study will begin by defining who constitute of online shoppers and will seek to draw definitive trends and patterns between online shopping and other consumer variables. Ultimately, the research aims at establishing the key predictors that guide consumers in their purchasing decisions and offers viable solutions to increase and facilitate e-commerce among the various organization in the same industry. Problem Statement As more consumers move toward using the Internet to shop for virtually every product or service, the more traditional industries are beginning to understand the effects of the digital revolution. The major cause of concern is that if these organizations do not adapt to the dynamism of their consumers, they risk to be outcompeted within the next few years (Miyazaki & Fernandez 2001). Moreover, more companies are engaging online marketers to understand the criteria used by consumers to select one product over the other. As such, identifying the factors that influence the consumer attitudes and behavior in the selection and purchase process is the major challenge facing most organizations. Aim and Research questions The principal purpose of this paper is to analyze how the series of factors under consideration affected the overall attitudes and behavior among a group of consumers. In this regard the study will assess majorly the demographical aspects of online shopping to establish the existence of consistency in the trends of online shoppers. The findings of this research will assist organizations to align their marketing strategies in tandem with the current trends in online shopping. It will also be critical to online marketers in providing noble insights on the specific target groups that they need to focus on if they are to capture and retain clients. Most importantly, the research will be key to website owners to understand why certain sites are more popular among online shoppers than others. Therefore the key research questions for this study will be: 1. What factors motivate consumers to prefer online shopping? 2. What is the demographic distribution of online shoppers? Literature Review Online shopper are defined as consumers who purchase goods through the use of the Internet. Most studies that have investigated on the common use of the internet deduce that the major uses have traditionally leaned toward online banking, listening to music, and paying of bills. Even though shopping has been around for some time, its usage was primarily hindered by logistic and geographical technicalities (Norzieiriani, Azizah & Ramayah 2010). However, this has gradually shifted with the engagement of interactive shopping medium that have attracted all shoppers regardless of gender age or level of income. Chen (2009) asserts that consumer attitudes toward ecommerce have been a critical indicator of the success of online shopping ventures by entrepreneurs. From his research, he explains that by having a crisp understanding of consumer attitude, it is possible for marketers and sellers to predict the possible preferences and behavior of consumers. McCarthy 2002 defines attitude as a psychological imperative that indicates an individual’s willingness to react or act in a particular manner. On the other hand, Asiegbu et al (2012) define the aspects of attitude as being a mentally cultured inclination to for individuals to respond in a particular way top external circumstances. Consistent with the understanding of attitude is the acceptance of the Internet as an authentic platform where actual business transactions can take place. As Na Li & Ping Zang (2002) argue, the concept of online shopping can be approached from two fundamental level. The first is on the extent to which consumers have embraced online shopping as a viable alternative to physical stress. Secondly is the extent to which consumers have confidence in a particular online store Research Method In investigating the attitudes of consumers towards online shopping, the study relied on interviewing online participants. This was done in order to get capture online shoppers without the possibility of bias in terms of gender or age. The questionnaires were to be taken by any group of willing individuals who had been actively engaged in online shipping for the past three months. This method served as a source of quantitative data. For the qualitative aspects of the data, two interviews were conducted with two workers who were active in online shopping. The use of quantitative data is a quick and convenient means of data collection in academic research especially in instances where there is the limitation of resources as was in this case. Research Model The framework for the research generally included the main dependent variables and a couple of independent variables as depicted in the diagram below. Essentially, the independent variables depicted the key influences that determined a customer’s choice to shop online. On the other hand, the dependent variable was the key variable under consideration in the research. Data Analysis and Discussion GENDER: From the survey results, 60 percent of the total respondents were female while 40 percent were male. Considering that this study was conducted voluntarily and without any initial gender bias, it can be safely argued that a comparatively high number of females were enthusiastic about the whole idea of online shopping AGE: Age is considered a primal factor in the ease and preference to use online shopping. From the data collected, 33.3 percent of the total respondents were in the ages of between 15-20 years. A further 26.7 percent fell under the age category of 21-25 years. 20 percent were in the age bracket of between 26-30 years and 10 percent were between 31-35 years. The remaining 10 percent were aged above 3 percent. From this data, the most evident patter is that there was a negative correlation between age and the enthusiasm to use online shopping. This is attested to by the fact that as the young adults were the most enthusiastic to use online shopping compared to their more elderly counterparts. Overall the data espoused that participants between ages 15 to 25 were the most conversant with online shopping (33.3% + 26.7%). EDUCATION: The data analyzed presented that the highest number of online shoppers fell under the high school and Masters level. High school students accounted or 40 percent of the total participants. They are closely followed by those at Masters level with 23.3 percent. The Bachelors level were at 20 percent and the PhD at 16.7 percent. The high predisposition of those at the high school level to be highly appreciative of online shopping was speculatively attributed to the types of commodities bought. Overall, a total of 63.3 percent of the total respondents were high school and masters students. AGE-GENDER DISTRIBUTION What is your Gender? How old are you? Frequency Percent Valid Percent Cumulative Percent 15-20 Valid 1 6 60.0 60.0 60.0 2 4 40.0 40.0 100.0 Total 10 100.0 100.0 21-25 Valid 1 5 62.5 62.5 62.5 2 3 37.5 37.5 100.0 Total 8 100.0 100.0 26-30 Valid 1 2 33.3 33.3 33.3 2 4 66.7 66.7 100.0 Total 6 100.0 100.0 31-35 Valid 1 2 66.7 66.7 66.7 2 1 33.3 33.3 100.0 Total 3 100.0 100.0 5 Valid 1 3 100.0 100.0 100.0 In the SPSS coded data, ‘1’ represented female while ‘2’ represented males. Therefore, from this analysis, it was evident that among the young adult (15-25 years), the distribution was such that there was a significantly high number of females as compared to males. However, between 26-30 years, the number of males was higher than that of females. Above 35 years, there was an even number of males and females. Based on this data, it was deduced that young females had a more positive attitude towards online shopping as compared to their female counterparts. However, between the ages 25-35, more males had a positive attitude towards shopping. Analysis of Determinant Factors. The main considerations that affect customer attitudes and behavior, broadly classified as convenience, website design, time saving and security were each analyzed in order to elaborate on their effects on the online shopping Convenience I am able to get timely deliveries every time I shop online Frequency Percent Valid Percent Cumulative Percent Likert Score Valid Strongly agree 13 43.3 43.3 43.3 216.5 Agree 12 40.0 40.0 83.3 160 Disagree 3 10.0 10.0 93.3 20 Strongly disagrees 2 6.7 6.7 100.0 6.7 Total 30 100.0 100.0 From the table above, it can be deduced that 83.3 percent of the respondents concurred that they were able to get timely deliveries through shopping online. More specifically from the Likert score, the data analyzed gave an average score of 4.03. This was a fairy high score and indicated that a large number of participants were satisfied with the delivery time for the products they shopped online. Online shopping sites provide detailed information about the Products Frequency Percent Valid Percent Cumulative Percent Likert Score Valid Strongly agree 11 36.7 36.7 36.7 183.5 Agree 6 20.0 20.0 56.7 80 Uncertain 4 13.3 13.3 70.0 39.9 Disagree 4 13.3 13.3 83.3 26.6 Strongly disagrees 5 16.7 16.7 100.0 16.7 Total 30 100.0 100.0 346.7 From the table above, it is quite clear that 36.7 percent of the respondents strongly agree that online shopping sites provide detailed information regarding their products. 20 percent agree, 13.3 percent are uncertain, 13.3 percent disagree and 16.7 percent strongly disagree. On the Likert score, the average score is 3.46 which essentially indicates that there exists a general positive agreement among the participants that they have access to detailed information when shopping online. Time Saving Online shopping saves/takes less time to purchase a product Frequency Percent Valid Percent Cumulative Percent Likert Score Valid Strongly agree 19 63.3 63.3 63.3 316.5 Agree 7 23.3 23.3 86.7 93.2 Uncertain 3 10.0 10.0 96.7 30 Disagree 1 3.3 3.3 100.0 6.6 Total 30 100.0 100.0 446.3 From the table above, 63.3 percent of the participants strongly agreed that online shopping saved them significant time when shopping. @3.3 percent agreed that online shopping saved them time while 10% uncertain. 3.3% disagreed, while no participant strongly disagreed. From the Likert scale analysis, the average scores stood at 4.46, indicating that online shopping took significantly less time compared to the traditional shopping. With online shopping less time is spent on selecting and evaluating products Frequency Percent Valid Percent Cumulative Percent Likert Score Valid Strongly agree 16 53.3 53.3 53.3 266.5 Agree 12 40.0 40.0 93.3 160 Uncertain 1 3.3 3.3 96.7 9.9 Disagree 1 3.3 3.3 100.0 6.6 Total 30 100.0 100.0 443 Time spent selecting and evaluating and selecting products is the equivalent of window shopping in traditional shopping diction. Therefore, with regards to online shopping, a total of 93.3 percent of the participants were in agreement that online shopping saved significant time in selection and evaluation of products. The average score was 4.43 meaning that there was string agreement that online shopping saved evaluation and selection time. Website Design I prefer a website that easy and safe to place an order and navigate Frequency Percent Valid Percent Cumulative Percent Likert Score Valid Strongly agree 18 60.0 60.0 60.0 300 Agree 5 16.7 16.7 76.7 66.8 Uncertain 4 13.3 13.3 90.0 39.9 Disagree 3 10.0 10.0 100.0 20 Total 30 100.0 100.0 436.7 The results shown from this table indicated that 60 percent of the respondents strongly agreed that the ease of access and navigation to the website was a major preference. !6.7 percent agreed the same, 13.3 percent were uncertain while 10 percent disagreed. The average Likert Score was 4.36, meaning participants strongly agreed to this response. To reduce risk of online shopping, I need to be familiar with a website before making the real purchase Frequency Percent Valid Percent Cumulative Percent Likert Score Valid Strongly agree 14 46.7 46.7 46.7 233.5 Agree 7 23.3 23.3 70.0 93.2 Uncertain 4 13.3 13.3 83.3 39.9 Disagree 3 10.0 10.0 93.3 20 Strongly disagrees 2 6.7 6.7 100.0 6.7 Total 30 100.0 100.0 393. 71 percent of the total respondent were in agreement that prior familiarity with the website was a key consideration before making a purchase. Only 6.7 percent strongly disagreed with this assertion. Consequently, the high Likert score of 3.93 showed participants positively responded to this question. Security I only shop from trusted/trustworthy websites Frequency Percent Valid Percent Cumulative Percent Likert Score Valid Strongly agree 4 13.3 13.3 13.3 66.5 Agree 10 33.3 33.3 46.7 133.2 Uncertain 5 16.7 16.7 63.3 50.1 Disagree 7 23.3 23.3 86.7 46.6 Strongly disagrees 4 13.3 13.3 100.0 13.3 Total 30 100.0 100.0 309.7 The distribution on the shopping from trusted websites was rather normal. 13.3 percent strongly agreed to shopping from trusted sites only, 33.3 percent agreed, 16.7 percent were uncertain, 23.3 disagreed, and 13.3 percent strongly disagreed. The Likert Score stood at 3.09, indicating that the question elicited a positive response. Analysis of Additional Responses from the Participants Question 14 of the questionnaire asked respondents to air their view on what improvements they felt should be made to make the online experience more efficient. After analyzing the responses from the participants, one of the most recurrent suggestions was the extension of credit facilities or buying goods on hire purchase. This issue was echoed by several participants who felt that having shopped in the same store severally, the website should have a criteria of determining who could be awarded this is privilege. Further, on the question of ensuring safety when purchasing products, most respondents agreed that they did a background check of the company before purchasing. They also suggested that one should seek for a referral of a website from friends or relatives before proceeding with a purchase. Conclusion The increased use of the internet has extensively popularized online shopping. This has made the critical role of markers to shift from merely that of creating awareness about the existence of products online to a more explicit role of understanding the unique needs of every customers (Haque & Khatibi 2006). The research focused the two key questions, that is – (i) what factors motivate consumers to prefer online shopping? and (ii) what is the demographic distribution of online shoppers? From the findings elaborated in this study, the retailers who intend to move to online marketing and selling of their products are in a position to get a clear picture of the factors that attract customers to their website. For instance, it is quite clear that website security does play a key role in determining how often customers will prefer a particular website for online shopping. References Asiegbu, F, Powei, M., Iruka, H 2012, Consumer attitude: Some reflections on its concept, trilogy, relationship with consumer behavior, and marketing. Implications. European Journal of Business and Management, vol. 4, no, 13. Ha, H 2011, ‘The effects of online shopping attributes on satisfaction-purchase intention link: a longitudinal study’, International Journal of Consumer Studies, vol. 36, no. 3, pp.327-334. 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