The Factors Affecting the Online Shopping Behavior of Generation Y in Thailand - Literature review Example

The Factors Affecting the Online Shopping Behavior of Generation Y in Thailand 0 Introduction The online shopping isa novel technology that has developed speedily to become a global trend (Bashir 14). A majority of individuals believe that the sustainability of the online shopping normally depends on trust which is built at an earlier stage of executing an online business. Bashir (2013, p.14) argues that the online shoppers are comparatively unique as far as the online shopping is concerned. In most cases, online shoppers spend a lengthy time while searching the best products which are available on the internet. Most of the customers normally review the testimonies that are posted by other customers. All these efforts are made in order to make an informed decision as far as the online shopping is concerned (Dittmar Helg, Karen and Rod, 2007, p.341). However, with the increasing internet insecurity, it is believed that the growth of the online shopping would face difficulties in the event that effective measures are not taken into consideration. The consumer behaviors which are associated with Generation Y in Thailand do not vary significantly from those of other parts of the world. The Generation Y implies to the generation of individuals that was born in 1980s and the beginning of 1990s (Hague, Paul and Nick, 2013, p.56). Individuals that were born during this period are argued to have accessed technology at an early age; among the devices that Generation Y access includes handsets and computers, as well as internet. Various terms are used interchangeably to denote the concept Generation Y; among these terms include the internet generation and millennials. On the other hand, Bush (2013, p.21) asserts that the consumer behavior refers to the process via which a purchaser decides what to purchase, where to purchase a given product and the amount of money to spend on a product. It also includes the payment method of the made purchase, the actual purchase of a product, the reassessment of the purchasing process, and the eventual consumption of a product (Bush, 2013, p.21). The consumer behavior can also denote the processes that a business, institution or individuals use when selling, securing and choosing a product in a market with a view of satisfying the needs of consumers (Lan, 2003, p.140). 2.0 The Online Shopping Behavior and Related Theories This section would examine the theories that are associated with the consumers’ behavior as far as the online shopping is concerned. These would include the characteristics of consumers, factors predicting the online shopping and the mindset of a consumer. 2.1 The Theory of Planned Behavior (TPB) The Theory of Planned Behavior is one of the theories that explain the behavior of consumers as far as the online shopping is concerned (Joey, 2013, p.199). The theory helps an individual to understand the association that exists between the online buying and trust, as well as privacy (Joey, 2013, p.199). The model uses the measurement scales to evaluate the different aspects of trust and privacy; it also includes the subjective norms and behavioral control. Dong-Her, Sheng-Fei, David and Chia-Chia (2013, p.31) assert that the Theory of Planned Behavior is associated with the intention of a consumer to execute a certain behavior. The theory helps to understand how an individual can alter the behavior of consumers. According to Joey (2013, p.199), the Theory of Planned Behavior normally predicts the intentional behavior; the existence of an intentional behavior is based on the condition that all behaviors are intentional and planned. The Theory of Planned Behavior is associated with the success of the Theory of Reasoned Action. The modification of the Theory of Planned Behavior was influenced by the fact that behavior is not fully controllable and voluntary. The Theory of Planned Behavior is associated with the following aspects (Bray, 2013, p.22). Attitude toward Behavior and Behavioral Beliefs The behavioral beliefs refer to a person’s belief regarding the consequences of a certain behavior. This notion is associated with the subjective probability that that a given behavior would result in a certain outcome (Bray, 2013, p.22). Attitude toward behavior refers to a person’s negative or positive assessment of the performance of a given behavior. The notion attempts to evaluate the extent to which the performance of a given behavior is negatively or positively assessed. This is decided by a range of available beliefs that link behavior to the results and other factors (Bray, 2013, p.22). Normative Behavior and the subjective norm This normative behavior denotes the person’s perceptions about the social normative pressures; it may also denote other relevant beliefs as to why one should not or should execute a certain behavior (Shaughnessy, 2013, p.63). The subjective norm refers to an individual perception regarding a certain behavior that is affected by the decision of the significant others. The significant others include a wife, husband, friend, parent or lecturer (Bray, 2013, p.22). Perceived Behavioral Control and Control Beliefs The control beliefs refer to the person’s beliefs regarding the presence of aspects that would aid or obstruct the execution of a certain behavior. The perceived behavioral control: This refers an individual’s perception regarding the easiness or difficult of executing a certain behavior (Bray, 2013, p.23). Fig. 1 The Theory of Planned Behavior Source: The Theory of Planned Behavior and Internet Purchasing, Internet Journal, 2013, Web, Figure. Generally, the Theory of Planned Behavior provides that a person’s performance with respect to a given behavior is influenced by the intention of that person to perform the given behavior (Bray, 2013, p.22). Chuchinprakarn (2013, p.2) provides that an intent is influenced by an attitude towards a given behavior, the subjective norms with respect to an engagement to a behavior and the perception concerning whether one would be able to engage successfully to a given target behavior. An attitude that is directed towards a certain behavior is regarded is a positive or negative evaluation with respect to performing the given certain behavior. Attitudes are usually informed by beliefs. On the other hand, norms are influenced by normative beliefs, as well as the drive to conform (Chuchinprakarn, 2013, p.3). Conversely, the perceived behavioral control is influenced by beliefs regarding a person’s control of an opportunity and assets that are necessary to engage in a given behavior. The Theory of Planned Behavior provides that there is a strong relationship between the control of a behavior and an achievement of a behavior. In a scenario where two persons are associated with an equal level of an intention as regards engaging in a given behavior, there is a possibility that an individual that has a high level of self-belief in the skill to perform a particular behavior is likely to achieve a tremendous success than an individual that is characterized by doubt (Fagerstrom, 2013, p.334). Despite the relevance of the Theory of Planned Behavior with respect to the examination of a consumer behavior, this model does not stipulate the specific beliefs which are relates to a certain behavior. The examiner has the responsibility of finding out the beliefs that are associated with a behavior that is under investigation. With respect to the online shopping, Blythe (2013, p.15) provides that the beliefs of privacy and trust about the internet normally influence the attitude towards the online shopping. The Theory of Planned Behavioral offers a basis upon which the relationship between attitude and the intent to engage in a given behavior. The intent to make an online purchasing is influenced by a number of factors, including the encouragement to agree to the views of significant others and the belief of having the required resources and opportunities. These factors are more likely than not to affect the intent to purchase; this would later affect the general purchasing behavior of a consumer. 2.1.1 Privacy Privacy is established as one of the major reasons that discourage consumers from shopping online (Joey, 2013, p.199). Internet is associated with various forms privacy; a section of researchers believe that privacy is perceived to be an important attribute in creating a social relationship. The social interactions also occur on the internet; they occur in different forms, including the anonymous interactions that are carried out in chat rooms. On the other hand, the property privacy is viewed as the extent to which an individual is able to control own information on the internet (Joey, 2013, p.200). The property view would emerge in the event that there is willingness to exchange the personal information for certain services that are associated with a given value (Joey, 2013, p.200). Among the services that are availed to consumers include free emails or particular discounts from sellers. A significant part of the internet privacy is associated with the property view. Researches indicate that a large number of consumers do not register on website due to fear of the abuse of their personal information (Milne, Labrecque and Cromer, 2009, p.449). Consumers also fear about the secondary use of their personal information; the secondary use of the personal information refers to the use of an individual’s information for a purpose that is different from the original one. Individuals who are less sensitive about the secondary use of their personal information are positive with respect to an online shopping (Pour, 2013, p.51). These individuals have also satisfied with the receiving unwanted e-mails; typically, these types of persons are less concerned about their privacy (Oshana, 2013). On the other hand, individuals that are sensitivity about the unauthorized secondary use of their private information are negative with respect to the online shopping (Valdimar, Vishnu and Skafti, 2013, p.297). However, it is provided that the establishment of the protective internet laws enhanced the level of the internet purchasing. The Generation Y in Thailand is associated with sensitivity as far as the internet is concerned. This attributed to the fact that citizens, including the Generation Y, are not free to criticize the king of Thailand (Palfrey and Gasser, 2008, p.261). 2.1.2 Internet Trust Joey (2013, p.201) argues that the attitude of an individual with respect to making an online purchase is influenced by trust. It is evident that a majority of consumers do not trust websites as far as the online shopping is concerned. Mostly, they do not trust the website providers as far as their personal information and the future relationship exchanges are concerned (Joey, 2013, p.201). Trust exists if an individual is believes that the other party would meet a given obligation. Studies have found that online shopping is more risky than the physical market in the light of making a purchase (Joey, 2013, p.201). The consumer’s perception about internet impacts on the willingness to make an online purchase. Shu-Hui and Kuan-Ping (2008, p.1384) elaborate that a positive belief about the internet trust is associated with a positive attitude with respect to making an online purchase. The Generation Y are do not trust internet with their personal information. 2.2 The Consumer Decision-Making Howard-Sheth Model This theory differentiates three levels of learning: these include a restricting the problem solving, wide-ranging problem solving and routionised response consumer’s behavior (Shodh, 2013, p.33). The lengthy problem solving occurs in the event that the customer’s awareness and beliefs regarding a product are considerably limited, and the consumer pursue additional knowledge with a view of finding an alternative product in a market. Shodh (2013, p.33) argues that the limited problem solving occurs when the consumer’s beliefs and knowledge are partial; in this regard, a consumer is always not able to evaluate the differences about the existing alternatives of a given product. On the other hand, a routionised response behavior manifests in the event that the consumer’s beliefs and knowledge regarding a certain product and other related products are well known to a consumer; in this regard, a consumer is more likely than not to purchase a single product. Table 1 The Howard-Sheth Model The Stage The amount of information required before a purchase The speed performed Extended Problem Solving Significant Slow Limited Problem Solving Moderate Moderate Routionised Response Behavior Less high-speed Source: Consumer Behavior: A Theoretical Framework, Indian ETD Repository,2013, Web, Table. 2.3 The Demographic Factors The male individuals were associated with an early adoption of the internet shopping in the past (Burkolter and Annete, 2013, p.3). Nevertheless, with the increase in the level of the internet use, the number of women who participate on an online purchasing has increased in the recent past. A research that was done Germany indicated that there was an increasing the number of women that are making online purchases (Burkolter and Kluge, 2013, p.3). There are differences on the gender purchase as far as online purchasing is concerned. According to Mengli (2013, p.1850), who did a research in Bangkok, Thailand the number of women that involves on the online buying is established to be high than that of men. Mengli (2013, p.1850) estimated that about 63.3% were involved on online purchases. The research by Mengli (2013) also found interesting results as far as age is concerned. The lowest number of individuals that were involved on online selling was associated with individuals that are 18 years and below; it estimated that 2% of this engaged in an online shopping (Menglis, 2013, p.1850). Menglis (2013, p.1850) found out that the highest number of individuals that engaged in online shopping related to persons that aged between 19 and 29 years old; most of this group was born in 1980s and beginning of 1990s. The group was followed by an age-group of between 30 and 49 years; this group comprised on 25.3% of the total number of individuals that execute online shopping (Menglis, 2013, p.1850). The research by Menglis also found interesting results as far as the level of education is concerned (Memglis, 2013, p.1850). Memglis (2013, p.1850) found out that a large number of individuals in pursuing Bachelor of Commerce were associated with online buying; the research established that 50.7% of undergraduate individuals engaging in an online shopping. This number was followed by individuals that are pursuing master’s degree; these individuals comprised 45.3% of the online shoppers in Bangkok, Thailand (Menglis, 2013, p.1850). Individuals at high schools and those pursuing the doctoral degree were approximated at 2% for each of the groups. Although the researcher presented variances among various demographics, it is argued that the intention of purchasing and the actual online buying are motivated by a number of factors, including the ease of use and maneuvering about the website. The ease of using a website would enhance the positive attitude of an online shopping and the consequential intention of buying over the internet (Menglis, 2013, p.1850). 2.4 Generation Y Behavior Generation Y refers to a demographic group that succeeded Generation X. As cited by Ching (2012, p.3), Sunday Report claims that Generation Y is associated with individuals that were born between 1978 and 2000. Generation Y individuals are associated with the fashion addiction. Additionally, this group is associated with a higher level of disposal income that the previous X Generation. Moreover, individuals of Generation Y have had an access to technology at an early age. Ching (2012, p.3) argues that “they are fast-learners of new technology. The Generation Y is considered to be more risk-taker than the previous Generation X; as a result, this group is inclined to try new things in relation to the past generation (Ching, 2012, p.4). In this regard, the Generation Y’s members are potential online consumers that have a relatively high level of purchasing power. Among the fashion accessories that Generation Y comprise of earrings, Iphone, scarves and smart phones (Ching, 2012, p.4). It regarded that the fashion accessories are among the most items that are purchased online. Technology Acceptance Model According to Ching (2012, p.26), the Technology Acceptance Model was developed by Davis. It is a fundamental relationship that bases on the intention-attitude behavior to predict the acceptance of information system (Ching, 2012, p.26). The researcher argues that the attitude of utilizing of the information system is dependent on the level of perceived ease and usefulness of the given system. The perception of usefulness relates to the fact that using a certain system would result in the enhancement of the job performance. On the other hand, the ease of using a certain system refers to the notion that an individual would be expected to engage less psychological and physical effort (Laohapensang, 2009, p.14). The perceived ease and usefulness of a given information system is affected by the design of such system. Various aspects tend to affect the ease of use of a given information system, such as the training, icons and menus (Ching, 2012, p.27). Ching (2013) provides that there is a strong relationship between the perceived ease and usefulness of a given information system. The usefulness of a system is normally increased by the ease of using the information system; this is normally reflected by an increased job performance among the system users (Ching, 2012, p.27). The Technology Acceptance Model provides that the actual use of a given system is typically influenced by behavioral intention to make use of the information system. Fig. 2 The Conceptual Technology Acceptance Model Source: Online Group Buying: Critical Factors Affecting Generation Y’s Online Buying Attitude of Fashion Accessories, The Kong Polytechnic University, 2012, Web, Figure. Individuals that have positive beliefs with respect to making online purchases have positive attitude of performing an online shopping. Moreover, consumers that are associated with a significant social support are more likely to perform an online shopping; this denotes that a considerable social support has a positive impact on the intention of a consumer to make an online purchase. Generation Y is associated with a positive belief about the internet purchases. This has resulted in the positive attitudes as regards the intention of buying online. In most cases, the ease of use among the Generation Y is facilitated by the fact that millennials are more likely than not to try new things. In this regard, this generation is likely to experience the easiness of using a system following various attempts. This would later enhance the useful of a certain system. This explains the reason why a majority of the Thailand online shoppers aged between nineteen and twenty-years (Menglis, 2013, p.1850). 2.5 Consumer Culture in Thailand The culture of the Thailand consumers is not different from those of others in the world (Giulietti, 2013, p.24). With respect to the online shopping, the Thailand citizens are inclined to search for the product’s information; among the information that consumers search include the nature of a product and price on diverse websites (Aung, 2013, p.6). Typically, consumers are observed reviewing the online comments and testimonies on rating sites, as well as the chat rooms. These efforts are made to ensure that the risk that is associated with an online investment is reduced. Following the review of comments and comparison of various prices, Thai consumers normally ring the seller to confirm their credibility (Aung, 2013, p.6). Additionally, a phone call is made to verify the delivery of goods, as well as safety and payment methods (Leelayouththayotin, 2013, p.52). However, Aung (2013, p.6) argues that there is a tendency of most Thai consumers to avoid executing an online payment regardless of whether it is a domestic or overseas purchase. For instance, a buyer in Thailand would request an associate overseas to buy product on his or her behalf. The associate is also required to ship to ship the product to Thailand as opposed to allowing the overseas company to ship the merchandised. Laohapensang (2009, p.506) is of the opinion that shipping products to Thailand is expensive. Additionally, it established that the Thai postal system is expensive in relation to those of developed economies. It is evident that most Thai citizens are predisposed to call sellers over the phone with a view of hearing their voice; consumers believe that hearing the seller’s voice is likely to enhance trust as far as the online shopping is concerned. However, there is a tendency of a majority of the Thai consumers purchasing products from domestic websites as opposed to the foreign ones; this factor tends to differentiate the behavior of the Thai consumers from those of online shoppers in other parts of the world (Aung, 2013, p.6). A majority of the Thai consumers prefer using the bank transfer payment or cash; however, a there is a minimal number of consumers use credit card. This aspect indicates that a large number of Thai consumers are sensitive about the risk that is associated with the online purchasing. This explains the reason why most of the Thailand’s consumers are inclined to find alternatives to reduce the level of the internet risk, such as the face-to-face or telephone communication. In a good number of cases, Paliwoda (2013, 27) accentuates that consumers are likely to question the use of credit card and related security aspects. Additionally, consumers would question the secondary of personal information, the decreased level of trust on online merchants, the prolonged period of a product delivery, the variation between the actual delivery and the claimed features of the product by the seller, as well as lack of testing merchandise. A research that was carried out by Aung (2013, p.6) in relation to focus groups in Thailand demonstrated that the word of mouth as means of communication, and other related marketing aspects, such as a brand and price, influence directly on the consumer’s buying decision. The outcomes also illustrate that the perceived is reduced significantly via the interaction of with the internet sellers. Aung (2013, p.6) developed the following Conceptual Framework Based on various factors that influence the buyer’s decision making process. Figure 3 The Conceptual Framework Consumer Behavior and Online Shopping Source: What Makes Online Shoppers Different from Non-Online Shoppers in Thailand, Martin de Tours School of Management and Economics, 2013, Web, Figure. Figure 4 The Marketing Mix and Online Shopping Source: The Role of Personality Traits and Perceived Values in Persuasion: An Elaboration Likelihood Model Perspective on Online Shopping. Social Behavior and Personality, 2013, Web, Figure. Places: the places of for an online market comprises of a network of people. Internet forms a new distribution through which a company can use to link various products and services to customers. The online groups are said to be influential on the behavior of consumers. Prices: the internet can be used to identify a pricing model. Various platforms are associated with different fee; among them include website, blogging, email and SEO. Promotion: company’s promotes their products via different platforms, such social media. There has been a significance use of facebook and linkedln among companies to advertise different products and services (Shu-Hui and Kuan-Ping, 2008). Products: the products or services refer to a product or service that is sold via the internet. There is a debate regarding the guarantee of quality for products and services offered online (Shu-Hui, and Kuan-Ping, 2008). 3.0 Conclusion The members of the Generation Y are among the individuals that have experienced a significant accessibility of technology, including computers, cell phones and internet in relation to Generation X. As a result, this group is highly engaged on the online shopping relative to the previous generation. Although a large number of the members of the Generation X are involved on the line shopping, the behavior of this group is not different from that of other groups. There are various factors that influence the behavior of these members as far as the online purchasing is concerned. There are various theories that attempt to explain the behaviors of online buyers. Among them, include the Theory of Planned Behavior. The Theory of Planned Behavior relates a number of factors, including the behavioral belief of an individual regarding the outcome of a given behavior. The theory also explains about attitude of a consumer; the attitude of a consumer is used to imply the positive or negative view regarding the performance of a certain behavior. The behavior of a consumer is also affected by the perception regarding the social normative; these perceptions usually affect the behavior of a consumer. Other factors such as the easiness or difficulty of performing a certain behavior also influence the general behavior of consumers. With respect to the online shopping among the Generation Y’s members, a number of factors that are significant, include the internet trust and privacy. The privacy of internet affects the behavior of Generation X as far as the online shopping is concerned; this is due to the fact that a number of online shoppers are sensitive about the leakage of their personal information. In this regard, the Millennialas normally develop fear with respect to the secondary use of their personal information; however, in relation to Generation X, the members of Generation Y are risk-takers and more likely to execute an online shopping. Although the Thai consumers are highly sensitive with respect to engaging in an online purchasing, it is established that the Generation Y consumers are more willing engage in an online shopping than the past generation. 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