A Comparative Analysis of Consumer's Attitudes and Behavior towards Online Shopping in the UK and Qatar - Research Paper Example

A Comparative Analysis of Consumers Attitudes and Behavior towards Online Shopping In the UK and Qatar Table of Contents Table of Contents 2 1.0 Introduction 3 1.1 Background 3 1.1 Statement of the Problem 3 1.4 Rationales 5 2.0 Literature Review 5 2.1 The Consumer Behavior 6 2.2 The Consumers’ Characteristics 7 4.0 Findings 10 5.0 Discussion and Analysis 22 6.0 Conclusions 22 7.0 Recommendations 23 8.0 Reflection 23 Bashir, A., 2013. Consumer Behavior towards Online Shopping of Electronics in Pakistan. Seinajoki Business School, [online] Available at: [Accessed 17 July 2014]. 25 Bray, J., 2013. Consumer Behavior Theory: Approaches and Models. Bourne Mouth, [online] Available at: [Accessed 17 July 2014]. 25 Burkolter, D. and Annete, K., 2013. Online consumer behavior and its relationship with socio- demographics, shopping orientations, need for emotion, and fashion leadership. Journal of Business and Media Psychology, [online] Available at: < http://journal- bmp.de/2011/12/das-verhalten-von-online-konsumenten-und-dessen-beziehung-zu- soziodemographischen-und-den-faktoren-%E2%80%9Ashopping- orientation%E2%80%98-%E2%80%98need-for-emotion%E2%80%99-und- %E2%80%9Afashion-leade/?lang=en> [Accessed 6 July 2014]. 25 Ching, C., 2012. Online Group Buying: Critical Factors Affecting Generation Y’s Online Buying Attitude of Fashion Accessories. The Kong Polytechnic University, [online] Available at: [Accessed 17 July 2014]. 26 Chuchinprakarn, S., 2013. Application of the Theory of Reasoned Action to Online Shopping. Knowledge Center, [online] Available at: [Accessed 17 July 2014]. 26 Joey, G., 2013. The Theory of Planned Behaviour and Internet Purchasing. Internet Journal, [online] Available at: [Accessed 17 July 2014]. 27 Mengli, M., 2009. A Study on Factors Affecting Consumers’ Attitude towards Online Shopping and Online Intention in Bangkok, Thailand. International Conference on Innovation & Management, [online] Available at: [Accessed 6 July 2014]. 27 Milne, G., Labrecque, L. and Cromer, C., 2009. Toward an Understanding of the Online Consumer’s Behavior and Protection. Journal of Consumer Affairs, [online] Available at: [Accessed 17 July 2014]. 28 Shodh, G., 2013. Consumer Behavior: A Theoritical Framework. Indian ETD Repository, [online] Available at: [Accessed 17 July 2014]. 28 1.0 Introduction 1.1 Background The establishment of internet has resulted in a different way of shopping; the availability of the internet shopping ensures that individuals are not bound to certain times of business operation or locations. The internet market ensures that a consumer can buy diverse types of products or services at different times and location (Dittmar, Karen and Rod, 2007). However, it is notable that online shopping is a comparatively new mode of communication, as well as the exchange of information: despite the novel nature of the internet market, it is reported that the internet consumers are increasing at a high pace on a daily basis. Oshana (2013) provides that the increasing number of the internet shopping is attributable to the augmented use of the broadband technology, as well as the change of attitudes and behavior of consumers. 1.1 Statement of the Problem There are a large number of consumers on various platforms which are associated with internet at any given time; these customers are potential buyers for firms that offer online services as far as the purchase of goods and services are concerned. With the increased growth of technology, Milne, Labrecque and Cromer (2009) are of the opinion that a large number of online firms face stiff competition since every firm is competing to win a customer. Given the fact that there are a large number of online consumers, it is essential to learn the preferences and needs of such potential customers. In other words, it is significant to evaluate a number of aspects that influence an online consumer as far as online shopping is concerned. Since the online market is a new phenomenon, it is expected that the behaviors and attitudes of with respect to the online shopping are likely to affect the performance of a firm that offer internet sales. In this respect, it is important for the online sellers to understand the consumers’ behaviors and attitudes. The assessment of consumers’ behaviors and attitudes is not a novel aspect (Joey, 2013). Various scholars have attempted to study the behavior and attitudes of consumers, as well as established a range of strategies that can be used to appeal to potential customers. In this respect, the identification of the online consumer behaviors and attitudes would help to design a strategy which would help the company to earn edge on a market. Additionally, the evaluation of consumers’ behaviors can assist in the categorization of the online market. Nevertheless, the difference between the behaviors of traditional consumers and the new online consumers should be established; this is due to the fact that the internet consumers are diverse relative to the traditional consumers (Mengli, 2009). In this respect, it is necessary to appreciate the various factors which influence a buyer when purchasing an online service or product. These factors would help an online retailer to tailor the online services and products to satisfy the online consumers Internet World Stats, 2013. 1.3 The Aim and Objectives The objective of this research is to discover: (a) The major factors that influence the consumer when contemplating and making an online purchase (b) The way various factors influence consumers when purchasing an online product or service (c) The type of segments that can be found on the online market (d) Identify the behaviour and attitudes differences and associated reasons among online consumers (e) The relationship between the consumer segments and various identified factors (f) Offer recommendations to online retailers with respect to the market they should target 1.4 Rationales The purpose of this research is to examine the behavior of online consumers in relation to the UK and Quatar market. Quatar is considered among the countries that are experiencing high levels of the internet use; the heavy presence of the internet use is likely to influence the online business positively due to increased online purchasing (Paliwoda, 2013). On the other hand, a large number of the UK residents are reported to experience accessibility to internet; in response, this has led to a significant number of consumers performing online services (Aung, 2013). Thirdly, the world has experienced a significant growth in the use of internet; similarly, a significant number of consumers continue to participate on the online shopping. It is against this information that this research is deemed significant among the online retailers. 2.0 Literature Review Leelayouththayotin (2013) affirms that the use of internet has experienced a paradigm shift in the recent past; it has resulted in the creation of a marketplace that is accessible to various consumers at any time and place. Typically, the availability of internet enables the accessibility of information and the augmentation of the e-commerce; this has made the online market become a single global marketplace where consumers can purchase both services and products (Hague and Nick, 2013). The increasing competition among the online retailers has resulted in the evaluation of the behaviors and attitudes of online consumers and their associated effect on the performance of a seller. It is evident that consumers are constantly affected by advertisements; the online retailers have the ability to control the level of information that is provided to consumers. Consequently, Fagerstrom (2013) observes that consumers tend to interpret information based on their understanding and other factors that are deemed to be important. Lan (2003) argues that the online market is characterized by individuals that are young, well-educated, associated with a high computer knowledge, wealthy and love spending significantly as far as shopping is concerned. Other scholars believe that the online market is associated consumers who are old, seek convenience, creative, love variety, risk-averse, access money easily and love adverts, as well as marketing. It is increasingly difficult to understand the behavior and attitudes of consumers given the fact the internet market has evolved rapidly leading to changes of the consumers’ behaviors. Additionally, different products that are offered over the internet tend to influence the behavior of consumers in diverse fashions; this factor also explains the reason why it is difficult to evaluate the behavior of consumers. 2.1 The Consumer Behavior It is established that in order to benefit significantly from the online market, it is crucial to appreciate the behaviors of consumers. This denotes various aspects which influence a buyer to make an online purchase, such as the needs and the methods of payment, should be studied carefully. Dong-Her, Sheng-Fei, David and Chia-Chia (2013) show that there is a substantial relationship between the needs and motives of a consumer; these aspects can rarely be separated. For instance, an individual may decide to purchase a sweater in order to be protected against harsh weather conditions, such as cold. However, there may be other underlying factors which influence the purchase of a sweater, which may include the latest trend on the market. Characteristically, the decision of a consumer is normally influenced by a various features; these characteristics include particular needs of a consumer. 2.2 The Consumers’ Characteristics The behavior of a consumer is usually influenced by a number of characteristics; these characteristics are categorized as cultural, social, personal and psychological features. The Cultural Characteristics Culture is regarded the elementary cause of the needs and wants of diverse individuals. In this respect, it is established that human behaviors are learned; typically human beings tend to experience different values and beliefs which influence the behavior as far as decision making is concerned (Chuchinprakarn, 2013). According to Valdimar, Vishnu, Johannes and Skafti (2013), these features are deemed to be important among marketers since they detect the attitudes and behavior of consumers. Consumers tend to share values and beliefs based on different geographical locations and ethnic groups; Traders attempt to evaluate the behaviors of different individuals via segmentation. Consumers from the high social class are reported to have a higher intention of participating on the shopping that their counterparts from the low social class. The tendency of a consumer to make an online purchase is associated with the fact that individuals from the high social class are likely to interact with computers and internet. The Psychological Online Features There are a number of questions that a consumer would ask before engaging in an online purchase. Burkolter and Annete (2013) deem that a number of questions that a consumer normally asks include price, the speed of services and whether to shop online or not. Other concerns include the security of a site, quality of product and methods of payments. A consumer is likely to make comparisons of various online firms that engage in the sale of similar products and make decision to purchase based on the past experience. The Social Characteristics Individuals are mostly influenced by a large number of small groups, such as families and workmates. It is not uncommon that the behavior and attitudes of a consumer are affected by such groups. Bashir (2013) argues these groups influence an individual’s behavior via the acquisition of a new lifestyle. Secondly, an individual’s attitude is likely to be influenced by these small groups. Thirdly, these groups are inclined to pressurize individuals to confirm to the codes and behaviors’ of a given group. Besides, Ching (2012) believes that there is a tendency of an individual to be influenced via the opinion leader; the opinion leader can influence a consumer to follow certain attitudes with respect to products or fields. More importantly, it is regarded that family members are inclined to influence the behavior of a consumer more than any other members. With respect to the internet market, there are a number of small groups, such as the virtual communities; these groups influences the behavior and attitude of a consumer as far as the online shopping is concerned. The Personal Characteristics The personal characteristics are associated with a number of aspects, such as age, personality, economic status and occupation. Firstly, Bush (2013) argues that a consumer is likely to experience diverse behavioral changes at different stages while growing. The occupation of a consumer would affect the purchases that are made. Similarly, the wealth status of a consumer is likely to affect the decision that is made by a consumer; for instance, an individual who is wealthy is likely to be associated with less price-sensitivity. On the other hand, Shu-Hui and Kuan-Ping (2008) argue that a consumer who has a low economic status is likely to be price-sensitive. Moreover, the lifestyle of a consumer, which include interests and actives that are usually performed by a buyer, usually affect the behavior and attitude of a buyer as far as buying is concerned. As regards the online shopping, Bray (2013) shows that individuals with reasonable wealth are likely to interact with computers and internet; this may influence their online purchasing behavior. Additionally, young people are associated with a high level of the internet interaction in relation to the old people; it is arguable that age also influences the behavior of the online purchasing. 3.0 The Research Methods The research methods that have been used in this study include questionnaires and focus group. Questionnaire The research method attempted to use a structured questionnaire with a view of establishing a quantitative data which would provide an in-depth insight as regards the research. The questionnaire was conducted in a manner that would result in the provision of helpful information; the questionnaire was distributed to individuals in London and Doha- the capital cities of the UK and Quatar respectively. The questionnaire was filled with the help of an interpreter in Quatar; however, the filling of questionnaires did not require a translator in the UK. Focus Group The focus group is a form an interview which involves more than four interviewees. Commonly, a focus attempts to examine at a lengthy level a specific subject. There is always a chance for an interviewer to collect helpful information via interaction, as well as body languages. The UK team comprised of five consumers who comprised individuals from different social background; on the other hand, the Quatar group comprised of five individuals of different social classes. 4.0 Findings Figure 1 The questionnaire established the consumers’ gender; the questionnaires established that a high number of females relative to males in the UK- the females were reported at 54.8%. On the other hand, the male individuals in Quatar were reported at 70.8%. Figure 2 The questionnaire reported a high percentage of individuals engaging in the questionnaire at the age of 18 to 24 in Quatar. Most Britons who participated in the questionnaire were aged between 25 and 34 years. Figure 3 About 32% of Quatar population was associated with an income of more than 50,000 sterling pounds. On the other hand, about 62% of the UK’s interviewed population was characterized with an income of between 20,000 and 40,000 sterling pounds. Figure 4 The questionnaire showed a high level of individuals owning laptop; the Quatar was reported at 93.7% while that of the UK was established at 94.7%. Figure 5 Both the UK and Quatar showed a high level of the use of laptop relative to tablet, Smartphone and PC. The Quatar’s laptop use was established at 50.5% while it stood at 36.1% in the UK. Figure 6 While the Quatar consumers indicated a 59.0% on the usage of credit card, the UK’s population of 47.5% used the debit card to make payments for goods and services. Figure 7 The UK indicated rate of 31% of purchasing online movies, music and games as the highest volume of online purchase. On the other hand, Quatar showed a percentage rate of 26% (the largest rate) is associated with the purchase of movies, music and games. Figure 8 The most reason provided for purchasing online goods and services was distance (43.2%) in the UK and variety of goods (69.1%) in Quatar. Figure 9 A large number of individuals in the UK (32.3%) indicated that they based price as basis of making an online purchase. Conversely, a large number of the Quatar individuals depended on the website security (36.8%) while making a decision regarding an online purchase. Figure 10 When asked what stopped them from making online purchases, a high percentage of the UK residents (50.8%) reported the failure of judging the quality of goods. A large percentage of the Quatar citizens (39.3%) also cited the failure of the judging the quality of goods as the main cause of failing to make an online purchase. Figure 11 Quatar The United Kingdom Figure 13 5.0 Discussion and Analysis The questionnaire revealed that about 96.8% of the UK residents have internet connections at homes; Quatar reported a slightly higher rate of 96.9%. An internet connectivity is crucial is facilitating the online shopping among consumers. The above data shows that both the UK and Quatar are characterized by a high rate of online shopping in relation to other countries in the world. This concept is underpinned by the fact that about 94.9% of the UK residents have PC, laptop, tablet or Smartphone; the ownership of similar devices was demonstrated by 93.7% of the Quatar citizens. Additionally, both consumers from Quatar and the UK indicated that they mostly purchase movies, music and games. With respect to the UK, the focus group indicates it is easy to purchase online than from a physical shop. However, websites that are associated with refund of money were favored relative to others. Although the groups accept that online is associated with a variety of products, individuals are likely to experience poor quality products without their knowledge. On the hand, the Quatar’s consumers trusted a website that has been tried by a friend or relative. Most Quatar consumers believe that the security of a website is important as regards the saving of money and confidential information. 6.0 Conclusions With respect to the research findings, the results indicate that there is increasing usage of internet in the UK and Quatar. The high level of the internet use has resulted in an increase in the number of the online market participants. The participation in the online market is attributable a large of homes which are connected with internet, as well as the availability of PC, Smartphone, laptops and tablet. While the UK is one of the biggest markets as far as the online consumers are concerned, Quatar is considered one of the countries that are experiencing the fastest growth in the use of internet. Although a large number of individuals in the UK engage in an online purchasing due its convenience with respect to distance, a good number of Quatar’s consumers are concerned about the variety of products. The Quatar’s level of participation on the internet market is likely to be maintained above those of other countries in the Middle East (Palfrey and Urs, 2008). 7.0 Recommendations Various firms that operate on the internet market are advised to design websites which are easy to maneuver as far as searching information and performing other activities are concerned. Additionally, it is recommended that various websites should be characterized by the language; this would boost the number of consumers that are able to acquire information on a certain region (Shodh, 2013). Moreover, Dalakian (2012) demonstrates that there is a need among the retail traders to embrace the use of mobile devices as far as their websites are concerned; it is advisable that a trader should tailor their websites to enable a consumer to use it effectively. In order to ensure the Quatar consumers are protected from any type of insecurity, there is a need for sellers to ensure their websites are associated with low risky methods of payment, such as the use of the PayPal payment method. Additionally, traders are advised to take advantage of the increasing participation of consumers in an online market (Shaughnessy, 2013). Moreover, in order to deal with the issue of quality, there is a need for firms to use quality videos in an attempt of demonstrating various products. 8.0 Reflection Our group members have adequate knowledge regarding every member; this reduced the time of knowing each. It was easy for the group to choose a topic; the cooperation between the members led to a fast selection of the project’s topic. The group was associated with a good step since every member found a deep interest in the behavior of online consumers. Questionnaires were distributed to various respondents who showed willingness to answer the respective questions. Both the UK and Quatar participants with respect to the questionnaire demonstrated the practice of patience as far as trading is concerned. Additionally, there was a lengthy period which was devoted in establishment questionnaires that provides more insights regarding behavior and attitudes of consumers who are associated with the online shopping. References Aung, M., 2013. What Makes Online Shoppers Different from Non-Online Shoppers in Thailand. Martin de Tours School of Management and Economics, [online] Available at: [Accessed 17 July 2014]. Bashir, A., 2013. Consumer Behavior towards Online Shopping of Electronics in Pakistan. Seinajoki Business School, [online] Available at: [Accessed 17 July 2014]. Bray, J., 2013. Consumer Behavior Theory: Approaches and Models. Bourne Mouth, [online] Available at: [Accessed 17 July 2014]. Burkolter, D. and Annete, K., 2013. Online consumer behavior and its relationship with socio- demographics, shopping orientations, need for emotion, and fashion leadership. Journal of Business and Media Psychology, [online] Available at: < http://journal- bmp.de/2011/12/das-verhalten-von-online-konsumenten-und-dessen-beziehung-zu- soziodemographischen-und-den-faktoren-%E2%80%9Ashopping- orientation%E2%80%98-%E2%80%98need-for-emotion%E2%80%99-und- %E2%80%9Afashion-leade/?lang=en> [Accessed 6 July 2014]. Bush, A., 2013. Consumers putting the consumer first. Luxembourg: Publications Office. Ching, C., 2012. Online Group Buying: Critical Factors Affecting Generation Y’s Online Buying Attitude of Fashion Accessories. The Kong Polytechnic University, [online] Available at: [Accessed 17 July 2014]. Chuchinprakarn, S., 2013. Application of the Theory of Reasoned Action to Online Shopping. Knowledge Center, [online] Available at: [Accessed 17 July 2014]. Dittmar H., Karen L. and Rod, R., 2007. When a Better Self is Only a Button Click Away: Associations between Materialistic Values, Emotional and Identity-Related Buying Motives, and Compulsive Buying Tendency Online. Journal of Social and Clinical Psychology, [online] Available at: [Accessed 17 July 2014]. Dong-Her, S., Sheng-Fei H., David Y. and Chia-Chia, L, 2013. Exploring the Individual’s Behaviour on Self-Disclosure Online. International Journal of Human-Computer, [online] Available at: [Accessed 17 July 2014]. Fagerstrom, A., 2013 On Motivating Operations at the Point of Online Purchase Setting. The Psychological Record, [online] Available at: [Accessed 17 July 2014]. Hague, P. and Nick H., 2013. Market research in practice: how to get greater insight from your market. Second ed. London: Palgrave Macmillan. Joey, G., 2013. The Theory of Planned Behaviour and Internet Purchasing. Internet Journal, [online] Available at: [Accessed 17 July 2014]. Lan, X., 2003. Do Computers Sweat? The Impact of Perceived Effort of Online Decision Aids on Consumers’ Satisfaction with the Decision Process. Journal of Consumer Psychology, [online] Available at: [Accessed 17 July 2014]. Leelayouththayotin, L., 2013. Factors Influencing Online Purchase Intention: The Case of Health Food Consumers in Thailand. [Online] Available [Accessed 17 July 2014]. Mengli, M., 2009. A Study on Factors Affecting Consumers’ Attitude towards Online Shopping and Online Intention in Bangkok, Thailand. International Conference on Innovation & Management, [online] Available at: [Accessed 6 July 2014]. Milne, G., Labrecque, L. and Cromer, C., 2009. Toward an Understanding of the Online Consumer’s Behavior and Protection. Journal of Consumer Affairs, [online] Available at: [Accessed 17 July 2014]. Oshana, R., 2013. Software engineering for embedded systems methods, practical techniques, and applications. Amsterdam: Newnes. Palfrey, J. and Urs, G., 2008. Born Digital: Understanding the First Generation of Digital Natives. Basic Books, [online] Available at: [Accessed 17 July 2014]. Paliwoda, S., 2013. Marketing Management in Asia. Hoboken: Taylor and Francis. Shaughnessy, J., 2013. Consumer behaviour: perspectives, findings and explanations. Houndmills, Basingstoke: Palgrave Macmillan. Shodh, G., 2013. Consumer Behavior: A Theoritical Framework. Indian ETD Repository, [online] Available at: [Accessed 17 July 2014]. Shu-Hui, C. and Kuan-Ping L., 2008. The Role of Personality Traits and Perceived Values in Persuasion: An Elaboration Likelihood Model Perspective on Online Shopping. Social Behavior and Personality, [online] Available at: [Accessed17 July 2014]. Valdimar, S., Vishnu M., Johannes P. and Skafti, J., 2013. A Test of the Behavioral Perspective Model in the Context of an E-Mail. The Psychological Record, [online] Available at: [Accessed 14 July 2014]. Internet World Stats, 2013. Internet World Stas, [Online] Available at [Accessed 14 2014]. Dalakian. G., 2012. 25 Essential Stats on E-Commerce in the Middle East [Online], Available at http://www.wamda.com/2012/10/25-essential-stats-on-e-commerce-in-the-middle-east- stats [Accessed 15 July 2014]. Appendix Questionnaire This research method that is aimed at examining the behaviour and attitudes of consumers as far as the online shopping is concerned. This research is carried oout in Quatar and the UK. The increase in the participants of internet consumers is likely to enhancve an economic growth. 1. What is your gender (please circle) Male Female 2. What is your age 18-24 25-34 35-44 45-54 55-64 3. What is your annual income (sterling pound) 0-10,000 10,001-30,000 30,001-40,000 40,001-50,000 50,000+ 4. Do you have internet Connection at home Yes No 5. Do you currently own your own Home PC/Laptop/Tablet/Smartphone? Yes No 6. What device do you use most often for online purchases? P.C. Laptop Tablet Smartphone 7. How often do you purchase goods and services online? Weekly Monthly Quarterly Annually Very rare 7. What do you most frequently purchase online? 8. How do you most often pay for online purchases? 9. Why do you shop online? 10. What is most important to you when purchasing online? 11. Do you shop online via social media sites such as Facebook/Twitter/Instagram? 12. What most prevents you from buying online? Read More