The Online Shopping Behaviour of Modern Generation - Essay Example

Chapter 4: Findings and Analysis 4 Overview The previous chapter described the methodology followed in this research. In this chapter, the data gathered from the focus group as well as through the questionnaire survey has been analysed and interpreted with respect to the research objectives. To be noted in this regard, as mentioned above, only the generation Y segment has been considered in the focus group interview as well as questionnaire survey mechanism adopted in this study. 4.2 Key Findings 4.2.1 The Use of Conceptual Model Based on the Literature Review On the basis of the conducted literature review in the previous section, the following conceptual model has been developed. Sources: (Lin, 2007; Haig, 2001; Moschis & Churchill, 1978; Chawla, n.d.) The conceptual model defines that for generation Y consumers, advertisement, promotion, convenience, brand reputation and price are among the major factors that influence online purchasing behaviour for fashion products. Accordingly, this study concentrates on how independent variables, such as advertisement and promotion influences online shopping behaviour of consumers. Studies, such as Lin (2007), Haig (2001), Moschis & Churchill (1978), Chawla (n.d.), also argued that these components are quite vital when determining the purchase intent of the consumers. While these studies and many others assessed during the literature review did not put much emphasis on indicating the influence of price on the consumer decision-making to purchase fashion products. It was in this context that the gap was mitigated with the help of primary research, wherein the findings from focus group interview revealed price to be a major factor in determining the customer purchase behaviour. 4.2.2 Hypotheses On the basis of the conceptual framework, it is vital to develop a hypothesis in order to evaluate the relationship between dependent variables and independent variables. Henceforth, two hypotheses have been conducted for evaluating the relationship between dependent and independent variables by using the Statistical Test namely Pearson product-moment correlation coefficient as mentioned in Methodology part. Based on literature survey the following hypotheses have been derived: H1: There is no influence of advertisements on online shopping behaviour of Thai consumers H2: There is no influence of promotional tactics on online shopping behaviour of Thai consumers 4.3 Demographic Profiles In this first section, descriptive statistics are employed for analysing the primary data of the respondents demographic profiles. In descriptive analysis, the raw data are presented in terms of frequency and percentage. These data include demographic information, namely gender, income and age. 4.3.1 Gender Table 4.1a: The frequency and percentage summary of demographic profiles (gender) Gender Frequency Percentage Male 144 45 Female 176 55 Total 320 100 The table above displays that there were 144 male participants which were the percentage of 45 of 100 and there were 176 female participants or 55% in this survey. Thus, the total number of respondents who was observed for this research was 320. 4.3.2 Income Table 4.1b: The frequency and percentage of demographic profiles (Income) Income Frequency Percentage less than 10,000 Baht 74 23.20 10,000 - 29,999.99 Baht 170 53.10 30,000 -49,999.99 Baht 55 17.20 more than 49,999.99 Baht 21 6.50 Total 320 100 From Table 4.1b, it can be seen that the largest monthly income earned was the group between 10,000 29,999.99 baht or equivalent to £150 - 450 for 170 respondents or 53.1%, the next income group was less than 10,000 baht for 74 respondents or 23.2%. A total of 55 respondents or 17.2% earned 30,000 49,999.99 baht and the remaining 21 or 6.5% earned over 49,999.99 baht. 4.3.3 Age Table 4.1d: The frequency and percentage of demographic profiles (Age) Age Frequency Percentage 16 - 25 years 102 32 26 - 35 years 131 41 36-45 years 77 24 46 years and above 10 3 Total 320 100 Table 4.1d, states that most of the respondents were between 26-35 years of age, 131 or 41%, 16-25 years old, 102 or 32% was next, 36-45 years old, 77, or 24% was followed, and over 46 years old, 10, or 3% was the smallest group. 4.4 Findings from Questionnaire Survey In order to understand how advertisements and promotional tactics influence purchasing decisions of Thai generation Y consumers, a questionnaire survey was conducted with 400 respondents. The questionnaire was divided into two parts, where the first part has been designed in order to understand the purchasing behaviour of Thai consumers, where the second part was designed in order to understand the influence of advertisements and promotion on online purchase behaviour of Thai consumers. About 320 respondents were properly responded and thus considered in the questionnaire findings. 4.4.1 Findings from First Part of Questionnaire This part of questionnaire was used Data presentation as Tables, Graphs and Charts in order to clearly identify and analyse the collecting data. The total sample respondents considered in this study included 45% males and 55% females. The dominant age group for the survey was also noted between 26 to 35 years and 16 to 25 years comprising 41% and 32% of the total sample size respectively. To be noted, these age groups fall in generation Y category. The respondents were accordingly asked regarding the amount of time they spend on internet daily. Majority of the respondents (i.e. about 62%) stated that every day they spend around 2 to 3 hours on internet, while very few respondents (approximately 4% and 6%) have specified to spend less than one hour and more than four hours on internet respectively (see figure 4). Figure 4: Frequency of Surfing Internet On the basis of the questionnaire survey conducted, it has also been found that among those who surf internet regularly, about 80% often use internet in order to gather information before making any purchase. Correspondingly, the survey revealed that about 65% of the respondents already have an experience of shopping fashion products from online stores. While 25% respondents of the total survey sample stated to be in thinking phase yet, while 10% of the total sample size revealed to have no immediate intention to purchase any fashion product from online stores (see figure 5). Apparently, the finding signifies that among generation Y Thai consumers, a tendency of purchasing from internet is observable wherein most of them have already experienced how purchasing is done through online stores. Figure 5: Outcome of Fifth Question Among those respondents, who purchased products from online stores, few also revealed to have an experience of purchasing fashion products online at a frequency of every four to five months (approximately 55%). 30% respondents also stated that they purchase fashion products via online stores at a frequency of every six to seven months. While only 5% respondents stated that they purchase fashion products through online stores once in a year (see figure 6). This signifies that there are still certain concerns among online purchasers, which refrains them from making frequent online purchases. Figure 6: Frequency of Purchase from Internet The respondents were also enquired regarding the level of spending on online purchase. With regards to this particular question, most of the respondents (around 50%) specified that they would spend around 21 to 60 pounds on single online purchase. 23% respondents however agreed to spend a higher proportion of their income, i.e. about 61 to 100 pounds on a single purchase. This signifies that most of the online purchases for Thai consumers fall within the range of 20 to 100 pounds (see figure 6). Furthermore, the questionnaire survey also revealed the fact that on annual basis; most of the respondents (about 45%) would have spent around 101 to 500 pounds on online purchase. This information revealed the fact that Thai consumers do not prefer bulk amount on single purchase, rather they desire for online purchase throughout the year in small quantities (see figure 7). Figure 7: Level of Spending on Online Purchase According to the findings obtained through the survey results, the key reasons for most of the Thai consumers (53%) to visit online shopping stores have been searching for information rather than planning for their purchases. However, 36% consumers have also stated that they prefer to purchase fashion products from online stores, while 7% respondents depicted that online stores help to know the latest trends better than the traditional stores, which forms the main reason of their visit to those websites. This particular finding signifies that online stores are regarded as a virtuous place for customers to gather knowledge regarding fashion products for most Thai consumers (see figure 8). Figure 8: Reason for Visiting Online Stores The respondents were also enquired regarding their reason for purchasing fashion products. In this aspect, most of the respondents (about 69%) stated that admiration from friends is the most likely reason for purchasing fashion products. Furthermore, fashion products also seem to have personal uniqueness for Thai consumers. 57% respondents also stated that fashion products help to demonstrate attractiveness for the. The following figure demonstrates the response of respondents in this respect. Figure 8: Reason for Purchasing Fashion Products The questionnaire survey further revealed that for a considerable number of Thai consumers (about 40%), the key sources for obtaining information about fashion products are family and relatives. However, friends are also regarded as a vital source for obtaining information regarding fashion products. Hereby, a considerable percentage of respondents (approximately 20%) stated social media as a vital source for gaining information about fashion products (see figure 9). Figure 9: Key Source for Obtaining Information about Fashion Products The respondents were also asked about the place from where they prefer to purchase fashion products. Correspondingly, majority of the Thai consumers (about 70%) stated that they prefer department stores for purchasing fashion products. In addition, online stores are preferred by Thai consumers in order to purchase fashion products. The following figure hereby demonstrates the preferred places for purchasing fashion products for Thai generation Y consumers (see figure 10). Figure 10: Preferred Place to Purchase Fashion Products In the corresponding question, the respondents were also asked regarding the number of their visits, before purchasing fashion products. Most of the respondents (about 73%) accordingly stated that they prefer to visit 3 to 4 stores before purchasing fashion products. 23% respondents also stated that they visit only 1 to 2 stores before purchasing fashion products. Only 4% respondents stated that they desire to visit around 5 stores while purchasing fashion products (see figure 11). Figure 11: Number of Visits before Purchasing Fashion Products From the questionnaire survey, it has also been identified that most of the online shoppers (about 85% & 80% respectively) are influenced by family and friends while making purchase decisions for fashion products. Furthermore, brand name and celebrities also influence the purchasing decision for fashion products of Thai generation Y consumers (representing 70% and 65% of respondents respectively) (see figure 12). Figure 12: Most Influencing Factor for Making Purchasing Decision on Fashion Products The respondents were also asked regarding their most preferred place for online purchases. The findings accordingly revealed the fact that local brand Facebook and international brands’ official websites are the most preferred place for conducting online shopping. This signifies the fact that brand reputation plays a vital role for online shopping wherein the local brands as well as reputed international brands can positively generate trust among Thai consumers for making online purchasing decisions (see figure 13). Figure 13: Most Preferred Place for Online Purchase From the questionnaire survey, it was also discovered that most of the respondents, i.e. the online customers (around 46%) prefer to purchase clothes as fashion items. Considerable number of respondents (about 31%) also stated that they prefer to purchase watches from online stores. The percentage of respondents who prefer to purchase accessories and shoes were identified as around 8 and 5 respectively. Besides, the respondents also mentioned to purchase bags and sunglasses from online stores (see figure 14). Figure 14: Most Preferred Fashion Products for Online Shopping The respondents were also asked about the reason for selecting online channels in order to purchase fashion products. On this note, most of the respondents stated that online stores provide greater selection of fashion products to browse. Furthermore, Thai respondents have also stated accessibility as the other vital reason for purchasing fashion products. When concerning pricing, the respondents claimed it as an important reason for online purchase of fashion items (see figure 15). Thus, the findings signify that Thai consumers seek for variety of selection processes while purchasing fashion items. Furthermore, the facility to shop at any time and from any place is also a key reason for Thai consumers to select online channels. Figure 15: Reason for Selecting Online Channel for Purchasing Fashion Items The eighteenth question was asked in order to understand the important factors for Thai consumers during online shopping. Among various factors, Thai consumers (about 89%) have highlighted privacy of information as most important while making online purchase. While 75% respondents also stated that proper description of products as most important in order to purchase fashion items. Furthermore, prices of products along with guarantees and warranties also play vital part for many respondents (see figure 16). Figure 16: Most Important Factors for Online Purchasing Decision The respondents were also asked regarding the vital concerns for conducting online shopping. Among various concerns, Thai consumers (about 79% and 75% respectively) have highlighted risk of credit card transaction and risk of identity theft as highly important for online shopping. Furthermore, 70% respondents also stated difficulties in returning products as the key concern for online shopping of fashion items (see figure 17). Figure 17: Important Concerns that Refrain from Online Shopping 4.4.2 Findings from Second Part of Questionnaire The second part of the questionnaire was designed in order to understand the role of advertisements and promotions on online purchase decisions of Thai generation Y consumers. The outcomes of the questionnaire survey discovered that television advertisements have not attracted Thai consumers for online shopping. However, promotional offers have been found to endow certain but low influence on online shopping behaviour of this particular group of customers (see figure 18). Figure 18: Influence of Television ads and Promotional Offers on Online Purchase From the survey, it has been observed that most of the respondents do not purchase the suggested products from advertisements. The questionnaire survey also discovered that considerable percentage of Thai generation Y consumers moderately care about the information provided by advertisements while purchasing fashion products. This signifies that advertisements have low influence on purchasing decisions of Thai generation Y consumers (see figure 19). Figure 19: Outcome of Twenty-third Question With respect to website advertisements, respondents have stated that use of idealistic pictures attract them for online shopping (35%). On the other hand, 10% respondents disagreed with the fact that use of idealistic pictures in online ads can grab their attention towards online purchase (see figure 20). Figure 20: Outcome of Twenty-Forth Question Concerning the twenty-fifth question, 74% respondents have stated that the use of online coupon and promotional codes have remained same in the last year. While 16% respondents stated that use of online coupon has increased over the past years to a substantial extent (see figure 21). Figure 21: Use of Online Coupon and Promotional Codes Question 25 The respondents were also asked if they prefer to use online coupon or promotion in the upcoming years while purchasing fashion products. Most of the respondents (about 60%) stated that they are likely to use online coupon while purchasing fashion products (see figure 22). Figure 22: Outcome of 26th question Finally, from the questionnaire survey it has been observed that most of the respondents are uncertain and sceptic when trying new fashion products, even if they are provided with online coupon or promotional code. It signifies the fact that for fashion products, promotional code have low influence on purchase, rather the product variety and guarantee among other aspects determine the purchasing decision for Thai generation Y consumers (see figure 23). Figure 23: Outcome of 27st Question From the obtained findings, it can be stated that online shopping imposes strong impacts on the purchasing attitude of Thai generation Y consumers. Online shopping has opened the door for various alternatives for generation Y consumers to select fashion products. Furthermore, online stores have also provided the opportunity for Thai generation Y consumers to check various trends and fashion items. It allows comparison of features and prices on which, purchasing decisions are taken. 4.5 Data Analysis and Hypothesis Testing Correlation analysis was performed in order to evaluate if online advertisements and promotional tactics influence online purchasing decision of generation Y Thai consumers. The data was analysed by using Statistical Tests known as Pearson product-moment correlation coefficient in order to measure the significance of relationships between two continuous variables. 4.5.1 Hypothesis 1 H1: There is no influence of advertisements on online shopping behaviour of Thai consumers. The data presented in table below shows results extracted on Pearson correlation coefficient to find significant between the Independent variables and the dependent variable (It will show in Table but I haven’t finished it yet just got the results below). In this context, the dependent variable is online purchasing and the independent variable can be considered as online advertisements and promotional tactics. From the analysis, the correlation covariance between advertisements and online shopping has been derived at 0.524. The value of the correlation covariance is positive, which signifies that there is a relationship existing between advertisements and online shopping activities of Thai generation Y consumers. Hence, the first hypothesis has been rejected and alternate hypothesis has been accepted. Thus, on the basis of analysis, it can be concluded that advertisement has strong influence on online shopping behaviour of Thai consumers. A similar notion has been propounded by many theorists including Liaukonyte & et. al., (2014), Bakewell & Mitchell (2003), Schrum & et. al. (1991), Moschis & Churchill (1978), Chawla (n.d.). This indicates that the finding obtained is reliable and justifiable, which correspondingly leads to the conclusion denoting a strong dependence of customers’ purchase behaviour on advertisement strategies. 4.5.2 Hypothesis 2 H2: There is no influence of promotional tactics on online shopping behaviour of Thai consumers. (It will show in Table but I haven’t finished it yet just got the results below). The correlation covariance value of promotional tactics and online shopping has been derived at -0.58. The value of the correlation covariance is negative, which further indicates that there is no specific relationship between promotion and online shipping activities of Thai generation Y consumers. Thus, the second hypothesis has been accepted and alternate hypothesis has been rejected. Based on the analysis, it can therefore be stated that promotion has considerably low influence on online shopping behaviour of Thai consumers. However, on the contrary, Morris (2013), Zhang (2011) and Haig (2001), among other studies reviewed in the literature section, argued that promotion has a positive impression on the online shopping behaviour of customers. This exhibits that the finding obtained from the secondary sources and the primary research is polar opposite when linking effects of promotional tactics with online shopping behaviour of Thai Generation Y customers. At the onset, the reason for such a gap may be the focus of the studies reviewed which were concentrated on the study of other regions or market culture (i.e. the market trends of different regions) or concentrated on providing a generalised view of the issue considered. While on the other hand, the aim of this research was narrowed to only Thai generation Y customers, thus resulting in such a gap. From a critical point of view, this gap suggests that a considerable amount of difference persists between the market trends and consumer behaviour in Thailand and other countries when considering online purchase trends. 4.6 Findings from Focus Group Interview and Discussion As a supplementary method to reduce research gaps, a focus group interview was undertaken in the study. The group comprised eight participants including five males and three females, wherein the respondents possessed significant skills in using the internet agreeing that they have logged on to the internet, minimum once in a day. For eight interviewees, researcher picked all of them from survey respondents and asked them to join the focus group interview. Among all the participants, five of them also asserted to have purchased online fashion products in last one month where two of them denoted to have purchased fashion products in last six months through online stores. However, one interviewee stated to have not purchased any fashion product from online sites ever. 4.6.1 Advantages of Online Shopping 4.6.1.1) To search useful information before purchase online About all the interviewees were found to use internet in order to obtain fashion related information. Subsequently, it has also been found that generation Y females are highly interested in searching for apparels and bags with respect to fashion products while males are highly interested in searching for shoes and watches for fashion products. A female respondent from the focus group accordingly stated, “I use internet in order search useful information related to clothes, handbags and wallets. It provides lots of information indeed such as cost, schemes, looks and appearance”. On the other hand, a male interviewee stated, “I use internet for finding and learning about new designs and interesting products such as watches, shoes and electronic items”. This particular finding makes it apparent that gender divisions play a major role in determining the market structure for online fashion products in Thailand. Hence, advertisement strategies used by companies to market their product online to Thai generation Y customers may also be observed to emphasise their gender specific preferences and requirements, indicating a key variable of customer purchase behaviour in the country. 4.6.1.2) To compare prices and products to other online stores About six respondents were found to be the regular visitors of various Thai online websites. One female respondent accordingly stated, “I prefer to send emails to my friends; I frequently check out information on fashion products for comparison, obtain updated news on apparel and beauty products and of course share any new looks to the friends.” A male interviewee, in the similar group further asserted, “Every day I spend minimum two hours on surfing internet, chatting with friends and colleagues and checking prices of different fashion products in order to discuss with my friend circle”. Most of the female interviewees however explained that they frequently purchase apparels online because they require convenience for shopping at home. On the other hand, maximum interviewees stated that they purchase fashion products since they are cheaper than those available at traditional stores. One female respondent also stated, “I am in the procedure of online shopping. I use online stores for obtaining information from different products. It is quite fast and provides lots of information for making shopping decisions. Through ecommerce, I can also surf and see other websites and accordingly, choose the best option”. This particular finding resides with the finding obtained through questionnaire survey and the secondary study revealing a strong relationship within price and customer purchase intentions. 4.6.1.3) To save time and cost The interviewees of the focus group agreed with the fact that online stores are informative and provide large assortment of products to select from, asserting that it is convenient and save considerable time and money. One interviewee further claimed, “I believe shopping through online store is convenient and save time for travelling to the traditional stores”. In response, an interviewee also stated that the procedure of shopping online product is exciting, pleasurable and entertaining. In this regard, one male interviewee stated that he uses online site because it is informative, quick and assist in searching information. However, the interviewees revealed to have certain concerns regarding the order and delivery procedures. Most of the respondents thus claimed that online sites are good for shopping books, as there is no way books can be of poor quality. This finding therefore suggests that online shopping is yet to prosper as a potential marketing technique for fashion goods in Thailand as consumers possess a degree of inhibition when purchasing other goods online but are more comfortable when seeking information about the same. 4.6.2 Barriers to Online Shopping 4.6.2.1) To receive incorrect items The interviewees have stated various barriers concerning online shopping. Many interviewees of the focus group stated that they are quite afraid that the products might not be as good as appeared or expected from the online store. Furthermore, the interviewees also demonstrated concerns regarding the return of the products or exchange of the products, if they are not as per the expectations. For example, as stated by one interviewee, “I am highly concerned if the product is not same as appear in the internet. It will be quite hard to return the defective and faulty product because the money has already paid. Thus, I prefer to check the price on online store and shop in traditional store where I can touch it and test it”. This also denotes a key barrier to online shopping strategies in Thailand. 4.6.2.2) To be defrauded Another interviewee also stated that fraud is the main barrier for online shopping. Due to various fraudulent activities, some of the interviewees have pointed towards their concern regarding the unenthusiastic behaviour towards online shopping. As he stated, “I don’t know if online shopping is really safe. I am afraid if online stores charge more than the actual price”. Indicating the same concern, another interviewee stated, “I am interested in online shopping, but still am concerned about losing credit card information. One of the employees of online store can hack into the system and steal my account information. I am not sure whether I should trust them”. The interviewee has demonstrated that in Thailand, there is no strong e-commerce law, which can safeguard the consumers’ rights completely. Thus, they feel less confident to purchase online fashion products. As one of the interviewees said, “Money must be collected after delivery, because if someone delivers incorrect products or steal important information, it will be quite challenging to sue the online store”. Interviewees also stated that online stores must provide certain assurance or guarantee for the fashion products. For instance, as stated by one interviewee, “I once desired to purchase a watch from online store, but I ultimately changed my mind, as I do not trust the ecommerce system of Thailand. The quality of the product might not be up to the description provided in the internet”. The interviewees also foresaw certain risks, which are related with online shopping such as product delivery procedure, fake products and second hand products among others. One interviewee also affirmed, “I am quite scared to getting wrong product. The colour of the product might be different from demonstrated in the actual website. I prefer to see and feel product with my hand before purchasing”. Evidently, these findings indicate that stronger regulatory norms are required to be implemented in Thailand that will help increase customer confidence on purchasing online and therefore, make the national market more prospective in building a competitive positioning in the global forefront. 4.6.3 Knowledge, Beliefs and Self-Perceptions Relating To Online Shopping The interviewees also provided their experiences in online shopping. The regular shoppers of fashion products stated that the salesman in traditional stores exaggerate excessively, where in online stores, the consumers have freedom to judge products without the influence of the salesmen. As stated by one regular online shopper, “I am not concerned about stealing credit card information. I believe one can steal credit card information when we sign documents in bank. I have purchased many fashion products from internet, but never faced any problems”. The idea of online shopping is quite new and innovative in Thailand and thus, several consumers are still hesitant to completely utilise it. As observed, most of the time interviewees stated that they use internet for searching information and purchasing from famous brands those are not available in traditional stores. One interviewee also stated, “I only purchase products from famous online shopping sites, which claim about the quality”. Furthermore, the cost and variety is also found to be other key aspect for Thailand generation Y consumers to purchase from online stores. As revealed from the study, the interviewees herewith prefer to purchase from online stores if the products are within the affordable price range. However, with respect to highly expensive products, consumers prefer to purchase from offline stores where they can see and touch the product while making their ultimate purchase decision. 4.7 Conclusion Read More