Investigation of Consumer Behaviour Towards Online Shopping in China - Research Paper Example

Qualitative Approaches to Researching Management and Organisations Table of Contents Working 3 2. Background 3 3. Contribution of the Study 4 4. Research Questions and Research Objectives 5 4.1 Research Questions 5 4.2 Research Objectives 5 5. Critical Literature Review 6 5.1 Current Trend Online Shopping in China 6 5.2 The Major Derivers of Consumer Behaviour towards Online Shopping In China 6 5.3 The Factors Deterring the Consumer from Involving In Online Shopping In China 7 5.4 The Strategy Adopted By Marketers in China to Attract Online Customers 7 6. Methodology 8 6.1 Research Philosophy 8 6.2 Research Method 8 7. Planning and Any Special Resources Required 10 8. Time Scale 11 11 References 12 1. Working Title "An Investigation of consumer behaviour towards online shopping in China" 2. Background In the contemporary business environment, the internet is used for various purposes. In the recent times, the internet as a medium of online shopping has increasingly become popular across the world (Chou, 2012). The emergence of online shopping trend has offered marketers as well as customers in China with numerous benefits. The numerous advantages offered by the online shopping to both marketers along with customers such as convenience of transaction, time saving and reduced operational costs have resulted in widespread acceptance from the customers and marketers alike in China. Thus, more and more marketers are engaged in offering products and services through the internet. Besides, the increasing online shopping trend is also supplemented with the growing number of internet users in China (Hsiang-Ting, 2009). In this regard, it has been identified that China ranks among the largest population having greater access to the internet. Nevertheless, the customers’ decision to purchase through online shopping medium is influenced by various factors which have a significant impact on the success and the failure of the business organisations offerings products and services through online medium. Therefore, it is imperative that marketers have considerable understanding regarding the factors affecting the customer choice to buy products and services online. At the same time, the changing socio-economic environment also has a radical influence on customers purchasing decision (Cheema & et. al., 2013). 3. Contribution of the Study Understanding the mechanism of online shopping along with the behaviour of online consumers has accorded a significant importance in the recent times. With the continuous expansion in the online shopping trend and its contribution to national economic growth, it has drawn widespread attention of researchers as well as marketers across the world (Constantinides, 2004). In relation to China, online shopping has offered attainable opportunities for small and medium business enterprises. Despite the considerable potential of online shopping in China, a lack of adequate understanding can be viewed in this subject matter in terms of drawing the potential impact of consumer behaviour (Hsiang-Ting, 2009). Thus, evaluating the customers’ attitudes and behaviours towards online shopping and the analysis of the factors affecting the consumer behaviour will assist the marketers offering products and services online by offering increased competence to plan appropriate and effective strategies for reaping the benefit of increasing online shopping trend in China. At the same time, in the present business environment, the aspect of competition is considered as an extremely important component that largely determines the success and long-term sustainability of the business. In this regard, it can be affirmed that marketers displaying exceptional understanding of the consumer behaviour and its potential impact on consumer purchasing decision will be able to gain greater competitive tractions as well as enjoy the luxury of large customer base without any extra costs (Panwar & Chahal, 2013). The adequate understanding regarding the consumer behaviour towards online shopping will not only assist marketers and managers to frame reliable strategies but it will also facilitate academic students as well as researchers to acquire insights and understandings regarding the concerned subject matter and will pave the way for further and in-depth research towards this subject area. 4. Research Questions and Research Objectives 4.1 Research Questions Consumer behaviour is a crucial determinant that shapes the purchasing decision of the customers. Hence, deriving considerable understanding will have an extensive and favourable impact on the business organisations. In order to draw reliable inferences from the proposed study, a research question has been formulated which has been illustrated below: “How does consumer behaviour impact the online shopping in China?” 4.2 Research Objectives The proposed research study by answering the research question, “How does consumer behaviour impact the online shopping in China?” intends to achieve the following objectives: To evaluate the online shopping trend in China To assess the major drivers of consumer behaviour towards online shopping in China To investigate the factors deterring the consumer from involving in online shopping in China To investigate the strategy adopted by marketers in China to attract online customers 5. Critical Literature Review 5.1 Current Trend Online Shopping in China According to Liu (2013), online shopping in China was initially introduced in the late 1998. Since then, it has been able to attain considerable growth and acceptance from the customers in China (Liu, 2013). Shen & et. al. (2009) stated that the number of internet users in the country is rapidly increasing. As per Shen & et. al. (2009), there was 253 million internet users in China as on 2009. The number of internet users in China had grown unprecedentedly at a rate of 347 per cent during the period 2000-2006. The growth in the number of internet users is ascertained to be the major factor behind the rapidly increasing online shopping trend in China (Shen & et. al., 2009). 5.2 The Major Derivers of Consumer Behaviour towards Online Shopping In China According to Lodorfos & et. al. (2006), there prevail a number of driving factors that motivate consumers to engage in online shopping. In this regard, it has been stated that consumer behaviour is largely influenced by prices of products available online, convenience of online transaction, availability of a large variety of products to choose from and customer experience among others. Correspondingly, it is stated that consumers often perceive that the prices of the products available online are lower than purchasing the same products through brick and mortar shop. Price factor is considered as the strong influential aspect that drives consumers to engage in online shopping. Another major factor associated with the customer online purchasing behaviour is attributed to convenience of engaging in online transaction. Unlike brick and mortar shop, customers are not required to visit the physical location for purchasing products instead they are able to buy at a click which saves considerable amount of time of customers. Besides, it is stated that consumers are offered with a wide range of products along with the explanation of their features which motivate online consumers to buy products online. Customer experience is also ascertained as one of the major drivers, which influences their behaviour to conduct online shopping. In this regard, it has been stated that those customers who have good experience of online transaction often engage in repeat online transaction (Kamarulzaman, 2011; Lodorfos & et. al., 2006). 5.3 The Factors Deterring the Consumer from Involving In Online Shopping In China Topaloğlu (2012) stated that there are certain imperative factors that often deter customers to engage in online shopping. Correspondingly, privacy and security are considered as two major factors that unfavourably influences the online consumer behaviour. Customers revealing their concern towards the misuse of their credit card and personal information are often discouraged to engage in online buying of products and services. Besides, increasing incident of online fraud in financial transaction is identified as another major deterring factor that unfavourably influences the consumer online purchasing decision (Topaloğlu, 2012). 5.4 The Strategy Adopted By Marketers in China to Attract Online Customers Zheng & et. al. (2012) highlighted that in order to reduce the perceived risk of online customers in China marketers have adopted numerous risk reduction strategies. In this regard, it has been stated that online marketers are engaged in providing adequate information to online customers in order to acquire their confidence and trust (Zheng & et. al., 2012). At the same time, it has been stated that online marketers are placing greater focus on developing trust based websites in order to eliminate the risk associated with frauds (Jin, 2006). 6. Methodology 6.1 Research Philosophy The research philosophy of the proposed study will be based on the paradigm of interpretivism. This research paradigm is selected because it is considered as the most dominating research philosophy used in the qualitative research. At the same time, this research based on this paradigm primarily focuses on the details of situation as well as it facilitates in investigating the reality behind these details in a more comprehensive manner. Nonetheless, there are two other widely applied research paradigms which include positivism and pragmatism. Positivism is rejected for the proposed research study as this paradigm is often considered to be more suitable for quantitative research study and is rarely applied in the qualitative research study. Although pragmatism offers a reliable alternative that can be used in the proposed study but is excluded because it is considered to be more appropriate and ideal for mixed research study (Wahyuni, 2012). Besides, it is vital to select a research approach. There are two major research approaches including inductive and deductive. A study based on inductive approach moves from precise observation to wider generalisation. However, there lies a degree of uncertainty with the application of this approach. On the other hand, study based on deductive approach moves from general to more specific. This approach is based on earlier theories and models. Moreover, the application of this approach facilitates the flow of conclusion logically from the available facts (Elo & Kynga¨s, 2007). Thus, deductive approach is being chosen for the proposed study. 6.2 Research Method The proposed study is a qualitative research. The research method for the proposed study will be based on secondary research searches. The validity of the research study largely relies on the reliability of the data collected. Therefore, the reliability of data compiled will be duly ensured. An extensive review of literature will be undertaken in order to answer the research question. For this purpose, secondary data will be compiled from reputed and lately published journals, articles and professional publications along with annual report of the companies dealing with online shopping. Priority will be placed on the lately published peer reviewed journals like Journal of Management. Besides, deductive relationships will be established between research and theory for drawing valid inferences. The data obtained from the secondary sources will be analysed with the application of grounded theory. The grounded theory is chosen as the qualitative analysis tool as it is considered to be ideal for research study dealing with human factors. The theory is considered as suitable for investigating complex multifaceted phenomena. Besides, it is relatively easier to interpret data using the grounded theory (Jones & Alony, 2011). Additionally, the proposed study will place significant importance on the ethical considerations. Correspondingly, the proposed research study will ensure that the data obtained from the secondary sources are accurate and are reliable. The proposed study will also ensure that these data are managed and interpreted in the most effective manner to ascertain its validity (Nicholson & Bennett, 2008). 7. Planning and Any Special Resources Required The purpose of the proposed research study is to provide an in-depth analysis on consumer behaviour towards online shopping in China. In order meet this objective, review of literature will be conducted and interpretivism research philosophy will be applied. Furthermore, deductive research approach will be used. The data needed for the proposed research will be accumulated from secondary sources. As sources of secondary data, lately published and reputable scholarly papers and peer reviewed journals and articles will be taken into consideration. The data obtained will be analysed through grounded theory analysis tool. A pictorial diagram of the research strategy is being illustrated below: 8. Time Scale Activities Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Submission of Research Proposal             Approval from Supervisor             Conducting Literature Review             Collection of Data             Conducting Data Analysis             Determining Findings             Conducting Discussion             Conclusion and Recommendations           Proof Reading and Final Submission of Dissertation             References Cheema, U. & et. al., 2013. The Trend of Online Shopping In 21st Century: Impact of Enjoyment in Tam Model. Asian Journal of Empirical Research, Vol. 3, No. 2, pp. 131-141. Constantinides, E., 2004. Influencing the Online Consumer’s Behaviour: The Web Experience. Internet Research, Vol. 14, No. 2, pp. 111-126. Chou, S. Y., 2012. Online Reviews and Pre-Purchase Cognitive Dissonance: A Theoretical Framework and Research Propositions. Journal of Emerging Trends in Computing and Information Sciences, Vol. 3, No. 2, pp. 199-204. Elo, S. & Kynga¨s, H., 2007. The Qualitative Content Analysis Process. Journal of Advanced Nursing, Vol. 6, No. 1, pp. 107-115. Hsiang-Ting, L., 2009. Online-Shopping Market in China - Adventurous Kingdom for Foreign SME. Marketing Research Shanghai Office, pp. 1-78. Jones, M. & Alony, I., 2011. Guiding the Use of Grounded Theory in Doctoral Studies – An Example from the Australian Film Industry. International Journal of Doctoral Studies, Vo. 6, pp. 69-114. Jin, B., 2006. The Moderating Effect of Online Purchase Experience on the Evaluation of Online Store Attributes and the Subsequent Impact on Market Response Outcomes. Advances in Consumer Research, Vol. 33, pp. 203-211. Kamarulzaman, Y., 2011. E-Consumer Behaviour: Exploring the Drivers of E-Shopping. European Journal of Social Sciences, Vol. 23, No. 4, pp. 579-592. Liu, J., 2013. Online Shopping Diffusion in China: - A Study Of Factors That Influence Adoption. KTH Industrial Engineering and Management, pp. 1-39. Lodorfos, G. N. & et. al., 2006. E-Consumers’ Attitude and Behaviour in the Online Commodities Market. Special Edition on Consumer Satisfaction – Global Perspective, pp. 77-96. Nicholson, S. W. & Bennett, T. B., 2008. Transparent Practices: Primary and Secondary Data in Business Ethics Dissertations. Journal of Business Ethics, pp. 1-9. Panwar, A. & Chahal, N., 2013. On-Line Shopping Trends in Faridabad City. Asia Pacific Journal of Marketing & Management Review, Vol. 3, pp. 111-117. Shen, S. & et. al., 2009. Chinese Users’ Preference for Web Browser Icons. Design Principles and Practices: An International Journal, Vol. 3, No. 1, pp. 116-128. Topaloğlu, C., 2012. Consumer Motivation and Concern Factors for Online Shopping In Turkey. Asian Academy of Management Journal, Vol. 17, No. 2, pp. 1-19. Wahyuni, D., 2012. The Research Design Maze: Understanding Paradigms, Cases, Methods and Methodologies. JAMAR, Vol. 10, No. 1, pp. 69-80. Zheng, L. & et. al., 2012. Chinese Consumer Perceived Risk And Risk Relievers In E-Shopping For Clothing. Journal of Electronic Commerce Research, Vol. 13, No. 3, pp. 255-274. Read More