An Analysis of the Impact of Internet on Consumer Buying Behaviour - Dissertation Example

?Table of Contents Background of Research 2 Literature review 2 Research Problem 4 Research Question 4 Aims and Objectives 4 Research Design and Methodology 5 Variables 7 Data Analysis 8 Limitations of Study 8 Facilities and Resources 8 Time Schedule 9 Bibliography 10 Research Proposal: An Analysis of the Impact of Internet on Consumer Buying Behaviour Background of Research The consumer traffic in online retailing is continuously increasing. More and more brick and mortar companies are planning to become click and mortar companies. The increasing number of commercial transactions on the internet has insisted the marketers to explore the reasons which are influencing the buying behaviour of consumers. Predicting consumer buying behaviour becomes important as it allows the online companies to make important future decisions. Therefore, some questions really get important like what are the factors which influence the consumer buying behaviour over the internet? How are the various factors influencing the consumer purchasing decisions? What are the characteristics of consumers which influence their engagement on the internet? Literature review The consumer buying process is a complex process and one of the important areas of investigation for researchers. A number of studies have been conducted to study the consumer buying behaviour. The increasing complexity of consumer buying behaviour is also brought by the online shopping. All theoretical models describing the behaviour of traditional consumers have gone outdated. Marketers have become more interested in studying the behaviour of consumers under the influence of internet. The 4Ps of marketing mix are the major controllable tools to affect the buying behaviour of consumers whereas the elements experienced by the consumer during virtual interaction are the controllable factors in the case of web consumers thereby, indicating that traditional and online marketers use different tools to influence the buying behaviour of consumers (Constantinides, 2004, pp. 121). Although a significant work has been done to study the factors which influence the consumer buying behaviour however, most of these studies give more focus on the factors that influence the behaviour rather than studying the impact of the factors on buying behaviour. The product information, the time they spent on internet and the number of daily emails, are the top factors influencing the consumer buying behaviour on the internet (Bellman, Lohse & Johnson, 1999). On the other hand, some studies have ended up with the findings that web consumers and traditional consumers are becoming similar in their buying behaviour. The web consumers are becoming more like the traditional consumers, at least in the United States therefore, companies should create web designs for an audience that is less educated, less web know-how, less technology know-how and earning less (Lohse & Johnson, 1999). A few studies have identified some important factors that can be evaluated to study the impact of internet on consumer buying behaviour. The black box model of Kotler in consumer buying behaviour describes that the external factors including the marketing mix and demographics, economic, situational, social and lifestyle factors and buyer’s mind such as his beliefs, values and decision making process are the determinants of purchase decision (Kotler & Armstrong, 2010, pp. 161). Actually Kotler has provided two set of factors including the external factors and the internal factors which may influence the buyer behaviour. This model gives an idea that knowing the characteristics of vendors and buyers are important to study the consumer purchase decision for example, product information and pricing are the controllable factors of vendors and personal nature of buyer like his/her beliefs, social nature etc are the controllable factors of buyers. The perceived dependability of the online vendors and less uncertainty involved in online buying increase the likelihood of online purchase (Teo & Yu, 2005). The level of trust and risk contribute to 20 percent of the attitude of consumers towards electronic purchase and parts trust and risk are the major determinants of consumer attitude towards purchasing whereas, the institutional risk and trust are the second major determinants (Verhagen & Tan, n.d.). It means the level of uncertainty in online shopping does influence the buying behaviour of consumers. Since uncertainty can be the security of transaction, overall reliability of website or privacy of the consumer therefore, these factors can be considered very important in determining the buyer buying behaviour. Actually, few gaps have been identified while evaluating the secondary resources. Most of the studies are based on panel data and data collected through different websites which is either very old or not reliable. Therefore, there is a need to conduct a research study which may directly study how consumers react under the influence of online retailing. Research Problem To study the influence of internet on consumer buying behaviour has become one of the fundamental issues in electronic marketing. Marketers are highly interested in determining the ways to attract customer in an extremely competitive internet marketplace. The increasing online shopping and the interest of brick and mortar companies in online presence raise various questions. It has become really important to investigate how internet is influencing the online consumer’s behaviour. This analysis is really important to examine how the consumer buying behaviour can be influenced by shaping their virtual interaction. Research Question What is the impact of internet on consumer buying behaviour in today’s world? Aims and Objectives Following are the main aims and objectives of the proposed research study: To analyse whether the reliability of online seller increases the chances of online transaction To analyse whether easy price comparisons and pricing strategies increase the chances of online transaction To analyse whether availability of extensive product information and product comparisons increase the chances of online transaction To analyse whether convenience in putting and cancelling order enhances the likelihood of online purchase To determine whether perceived security of transactions influence the purchase decision of customer To analyse the behaviour of customer when he/she is asked to provide significant credit card and bank details To determine whether reliability of the website in using personal information influence the purchase decision of buyer To determine whether providing more detailed personal information influence the buying behaviour of consumer To evaluate how different characteristics of consumers influence their behaviour on the internet Another aim of this research is to examine whether characteristic of customer to interact with sellers more frequently influence his/her buying behaviour on the internet Research Design and Methodology The proposed research study will be a descriptive kind of research in which the impact of internet on consumer buying behaviour will be evaluated. Both the qualitative and quantitative research methodologies will be used to conduct the research. The primary data will be collected through conducting a survey. The participants will be randomly selected from different fields of life including students, households, professionals, businessmen etc. This will help on generalising the implications of findings of the study. Total 500 participants will be selected to conduct the survey. The questionnaires will be distributed by hand and via email. To ensure the random sample, the participants will be accessed from shopping malls, internet cafes, universities and public places. The extensive narrative data will also be collected to get deep insights into the proposed research study. The qualitative data will be collected through secondary resources such as journals, periodicals, existing research studies and relevant theories. The findings drawn from primary research will be critically analysed in the light of qualitative analysis. The following flow chart describes the research methodology of proposed research study. Research Methodology Process Flow Chart Variables The questionnaire will be divided into five sections covering five topics. In the first section, the data related to customer characteristics will be collected such as demographics and social interaction. The second section will cover the seller characteristics. In the third and fourth section, the questions related to security of transaction and concerns for privacy will be discussed. The last section will cover the purchasing behaviour of the customers. Total five variables will be selected including characteristics of vendor, security of transactions provided, privacy, characteristics of customers and the purchasing behaviour of consumers. The first four variables will be the independent variables whereas; the purchasing behaviour of customers will be the only dependent variable. The variables will be measured through different scale items and through factors analysis the model will be developed. Following is the model that will be used to test the hypotheses. y = ao + a1x1 + a2x2 + a3x3 + a4x4 + e Where, y = consumer buying behaviour that will be measured in terms of chances of online purchase a = constant x1 = characteristics of seller x2 = provided security of online transactions x3 = privacy of customers’ personal information x4 = characteristics of customers including demographics and social interaction e = error term Data Analysis The information collected through constructs of variables will be measured through different scale items. Once collected, all information will be reduced in various dimensions by using factor analysis approach. In this way, all data will be in numerical form. The averages of variables will be collected for each factor. The calculated averages will be used to describe each construct. Finally, the regression analysis will be done to test the hypotheses. Limitations of Study This study will be conducted for academic purpose therefore; a realistic sample size has been selected. Generalising the findings of this study at large level may not be possible and is considered as a limitation of the study however, the insights of the research will outweigh this limitation. Secondly, the socially acceptable answers of participants can influence the findings of the research however; the participants will be conveyed that the survey will be only for academia purpose with no self-interest. Facilities and Resources The required facilities and resources that will be accessed to conduct this research include: Internet access Computer Digital Library Microsoft Office Time Schedule Table: Timeline Number Tasks Start Date Finishing Date Duration 1 Topic search and selection       2 Identifying the research problem and develop research question       3 Considering the limitations and scope of research       4 Identification and selection of variables       5 Secondary research and writing the literature review       6 Finalising research design and methodology       7 Research proposal submission       8 Approval of the proposed topic and research       9 Conducting the survey (questionnaire design, approval and distribution)       10 Data collection through surveys       11 Organisation of data       12 Data analysis       13 Findings of research       14 Conclusion and identification of implications of findings       15 Reporting writing       16 Editing report       17 Printing and binding       18 Final report submission       Bibliography Bellman, S., Lohse, L. G & Johnson, J. E 2004, ‘Predictors of Online Buying Behaviour’, viewed 20 August 2011, . Constantinides, E 2004, ‘Influencing the Online Consumer’s Behaviour: The Web Experience’, viewed 19 August 2011, . Kotler, P & Armstrong, G 2010, 'Consumer Markets and Consumer Buyer Behaviour', in Principles of Marketing, 13th Edition, Pearson Education, New Jersey, pp.161 Lohse, L. G & Johnson, J. E 1999, ‘Consumer Behaviour on the Internet: Findings from Panel Data’, viewed 19 August 2011, . Teo, S. H. T & Yu, Y 2005, 'Online Buying Behaviour: A Transaction Cost Economics Perspective', Omega, vol. 33, no.5, pp. 451-465. Verhagen, T & Tan, Y. H n.d., ‘Perceived Risk and Trust Associated with Purchasing at Electronic Marketplaces’, viewed 20 August 2011, . Read More