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Marketing Research
Submitted to:
Submitted by:
Marquez, Emmanuel
Medina, Darlene
Sola, Jestine Marie
Valebia, Regina
Introduction
Generally speaking, the trend of e-commerce has been increasing rapidly in the recent
years with the development of internet and due to the easy accessibility of internet usage.
Having an easy access to the internet has driven entrepreneurs to create an online shop and
the customers to shop online. Through electronic marketing and internet communication,
services, customer feedback and so on. Online shopping is used as a medium for
attractiveness of delivering customer benefits and better satisfaction, that is why online
Not only benefits but there are also risks in online shopping. There are fake stores, credit
card fraud, lack of assurance for the quality of the items, non-delivery risks, etc. On the
other hand, despite of having a downside, e-commerce is growing fast – customers can
buy faster, there are more alternatives and can order product and services with comparative
lowest price. Customer’s attitude towards online shopping refers to their psychological
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I.A. Statement of the Problem
The prime purpose of the research is to identify and analyze the factors influencing
consumers to shop online. The findings of this research will not only help the marketers to
formulate their marketing strategies for online shoppers but will also increase the
One of our research objectives is to work on factors that influence consumers to shop
online, researchers have decided to study two factors such as Convenience and Website
purchasing but it is equally important to find as how the consumers form attitudes and
behaviors towards online buying because consumer attitude towards purchasing online is a
conspicuous factor affecting actual buying behavior. When marketers get to know the
factors affecting online buyer’s behavior then it create huge opportunity for the marketers
to develop the marketing strategies accordingly and turn the potential customers into
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CHAPTER II
E-commerce is a tool for reducing administrative costs and cycle time, streaming business
processes, and improving relationships with both business partners and customers
(Charles, 1998). The Internet and electronic commerce were the two most significant
development of information during 1990s. There has been a marked increase in the
number of consumers who purchase over the Internet, as well as an increase in sales
industries (Blosch, 2000; Hamid & Kassim, 2004). Customer purchasing decisions are
reflected to on how the customers select, organize, and interpret information to form
knowledge. The motivation is reflected to the customer’s desire to meet their own needs.
Learning is reflected to the customers’ behavior experience arising. Attitudes are reflected
towards object or idea. Finally, Beliefs is reflected to customers’ thoughts about a product
purchasing decision. The purchasing decision process starts long before actual purchase
and continues long after. Usually in more routine purchases, consumers often reserve or
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skip some of purchase decision process (Kotler & Armstrong, 2004). The researcher used
Convenience
Convenience and saved time were offered by online shopping which were two motivating
factors for online purchases (Lee, 2002). The main reason that motivated consumers to
shop online was conveniences (Swaminathan et al., 1999). Convenient access to product
information could facilitate and help shoppers’ making an online purchases decision
(Loshe & Spiller, 1999). Empirical research shows that convenient of the internet is one of
the impacts on consumers’ willingness to buy online (Wang et al., 2005). Online shopping
is available for customers around the clock comparing to traditional store as it is open 24
hours a day, 7 days a week (Hofacker, 2001; Wang et al., 2005). Research shows that 58
percent chose to shop online because they could shop after-hours, when the traditional
stores are closed and 61 percent of the respondents selected to shop online because they
want to avoid crowds and wailing lines, especially in holiday shopping (The Tech Faq,
2008).
Consumers not only look for products, but also for online services. Some companies have
online customer services available 24 hours. Therefore, even after business hours,
customers can ask questions, get necessary support or assistance, which has provided
convenience to consumers (Hermes, 2000). Some customers use online channels just to
uncomfortable when dealing with salespeople and do not want to be manipulated and
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controlled in the marketplace (Goldsmith and Flynn, 2005; Parks, 2008). This is especially
true for those customers who may have had negative experience with the salesperson, or
they just want to be free and make decision by themselves without salespersons’ presence.
Customers can be influenced by the image of the web site when they decide what website
or buyer they should buy from (Lim and Dubinsky, 2004). Not only should companies
create their secured website, but also should create it to be more attractive and more
useful. Online stores can change a shopper into a buyer if the stores provide variety and
useful information of product, good customer service, and easy-to-access website (Laudon
and Traver, 2009). Their websites should have enough information but should not be too
internet usefulness and ease of use (Bigné-Alcañiz et al., 2008). Also, companies and
sellers should double-check any single words in their website to reduce mistakes and
repurchasing (Koo et al., 2008). The willingness to purchase online will be low if the
online store lacks of ease in searching and comparing shopping, and product updates.
Online store should make their website to be easy for consumers to search product and
service. Making web designs and portals novel and sophisticated and web atmospherics
friendly is a key to attract visitors. Moreover, if online stores want to convert visitor into
buyer, they should improve their website by offering customer a comfortable, logical,
interesting and hassle-free process and easy language by creating fast website with
willingness to pay (Wang et al., 2005). Online stores should make their payment process to
Website design and online shopping activity is one of the vital influencing factors of online
website security/privacy are the most attractive features which influence the perception of
the consumer of online buying Shergill & Chen (2005). Kamariah and Salwani (2005)
claims the higher website quality, the higher consumer intends to shop from internet. Web
design quality has important impacts on consumer choice of electronic stores, stated by
Liang and Lai (2000). Another study conducted by Zhang, Dran, Small, and Barcellos
(1999, 2000), and Zhang and Dran (2000) indicated that website design features of the
website are important and influencing factors that leads consumer’s satisfaction and
dissatisfaction with a specific website. A study conducted by Yasmin and Nik (2010)
shows a significant relationship between online shopping activity and website features.
Website design features can be considered as a motivational factor that can create positive
or negative feelings with a website (Zhang, et al 1999). A study by Li and Zhang (2002), if
website is designed with quality features it can guide the customers for successful
transactions and attract the customers to revisit the website again. However, worse quality
website features can also hamper online shopping. According to Liang and Lai (2000),
web design quality or website features has direct impact on user to shop online. Moreover
researchers such as Belanger, Hiller and Smith (2002) concluded that a large segment of
Methodology
III.A.Research Method
III.A.1.Survey Questionnaire
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III.B.Data Collection
questionnaire from consumers as what are the factors that influence them to purchase
online. As our study covers online shoppers so we feel it would be easy for us to distribute
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CHAPTER IV
Uncertain/
Strongly Strongly
Modules Agree Not Disagree
Agree Disagree
Applicable
Convenience Frequency
1. I get on-time delivery of product 4 16 10 - -
in online shopping
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The data collected by the researchers in the form of age, gender, and occupation.
Researchers will use tables and graph to see the demographic profile of online shoppers, in
the same step researchers will do correlation analysis of each demographic factor except
gender, to see the relationship with demographic factors and attitudes towards online
shopping. After finishing first step, researchers will analyze 1 st part of the questionnaire
regarding two factors. In the second step first section of the questionnaire will be analyzed
regarding two factors influence consumers to shop online, it consist of 8 questions. First
factor that is convenience carries four modules, and each module will be analyzed and
discussed separately with the help of table and graph of frequency and with results of likert
scale. Writers have used five point likert scale from strongly agree with score of 5 to
strongly disagree with score of 1. The score of each module (e.g. "I get on-time delivery
by shopping on-line") in terms of frequency will be used to calculate the average for each
module. For instance if we denote "Strongly agree" by "5", the others by "4, 3, 2, 1 " then
we can use the 30 input data as follows: 5*4(frequency) + 4*16 + 3*10 + 2*0 + 1*0 = 114.
Divided by 30 (sample size) we will get 3.8 which is the average result for this module.
In the same way we will calculate the total series for all the 8 modules. First factor that is
design/Features. Firstly we will analyze each module separately and later on we will
analyze in the form of groups (Convenience and Website design/Features). Once this part
will be completed, researchers will take average of each group. Average of each group will
be calculated by taking the sum of averages of each module under each group and the
dividing that sum by number of modules under each group to see trend of consumer
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attitudes towards online shopping. To make it more clear suppose the average score for
first module (M1) is 3.8, second module (M2) is 3.93, third module (M3) is 3.97 fourth
module (M4) is 4.17, so the average score for convenience will be calculated by adding up
the average scores 3.8+3.93+3.97+4.17= 15.87, then dividing the sum to total number of
modules i.e. 15.87/4= 3.97. Respondent’s answers will be discussed in this section. The
last section summary includes the summary about the factors that influence consumer and
IV.A.1.According to Gender
According to demography profile, 83% of the respondents are male and 17% respondents
are female. We conducted a random sampling with the total of 30 respondents. At the time
of survey comparatively higher number of female said they don’t have shopping
experience through online. So, according to the survey result it is clear that male
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Figure 2
Gender
IV.A.2.According to Age
Table 3
Age Profile
Table 2 shows that out of 30 respondents, majority of online shoppers are in the age range of
21-23 years old with frequency of 6 or 20% of respondents, followed by age ranged of 18-20
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with frequency of 5 or 17%. While, the least frequency of age range is 42-44 with 0 frequency
followed by age range of 45-47 and 48-50 with frequency of 1 or 3%. So according to the
respondents group, maximum respondents are the millennials or the younger generations who
has age limit between 21 to 23 years. Overall result shows that between all of them the
respondents who has age limit between 18 to 26 years and 33 to 35 years (17%+20%+13%
IV.A.3.According to Occupation
Figure 3 shows that majority of the respondents are employed with the percentage of 87%,
Figure 3
Occupation
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Table 1 Age Profile
Age Frequency Percentage
18-20 5 17%
21-23 6 20%
24-26 4 13%
27-29 2 07%
30-32 2 07%
33-35 4 13%
36-38 2 07%
39-41 3 10%
42-44 0 0%
45-47 1 03%
48-50 1 03%
30 100%
Table 1 shows that out of 30 respondents, majority of online shoppers are in the age range
of 21-23 years old with frequency of 6 or 20% of respondents, followed by age ranged of
18-20 with frequency of 5 or 17%. While, the least frequency of age range is 42-44 with 0
frequency followed by age range of 45-47 and 48-50 with frequency of 1 or 3%.
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Table 2 Gender Profile
Gender Frequency Percentage
Male 25 83%
Female 5 17%
Total 30 100%
Table 2 shows that majority of respondents are Male with frequency of 25 or 83%.
Table 3 shows that out of 30 respondents, 26 of them are employed with percentage of
87%.
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CONVENIENCE Weighted Mean Verbal
Interpretation
1. I get on-time delivery of product in online shopping 3.2% Uncertain / Not
Applicable
2. Detail Information of products are available in 4.53% Strongly Agree
online shopping
3. I can buy the products anytime 24 hours a day in 6.3% Strongly Agree
online shopping
Table 4 shows that the 30 respondents perceived that they can buy the products anytime 24
hours a day in online shopping with a weighted mean of 6.3% or a verbal interpretation of
Strongly Agree, followed by the availability of the detail information of products in online
shopping with a weighted mean of 4.53% or a verbal interpretation of Strongly agree, then
the being able to choose and make comparison with other products easily in online
shopping with a weighted mean of 4.17% or a verbal interpretation of Agree and lastly,
being on-time delivery of product in online shopping with a weighted mean of 3.2% or a
verbal interpretation of Uncertain / Not Applicable.
This means that the respondents consider the convenience of buying products anytime,
anywhere through online shopping with a total weighted average mean of 4.55% or a
verbal interpretation of Strongly Agree.
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WEBSITE DESIGN/FEATURES Weighted Mean Verbal
Interpretation
Table 5 shows that the 30 respondents agreed that the website design helps them in
searching the products easily with weighted mean of 4.47%, 4.4% preferred to purchase
from the website that provides safety and ease of navigation and order and the website
layout provides quality of information in searching and selecting the right product while
shopping online. And 4.23% believed that familiarity with the website before making
actual purchase reduce the risk of shopping online.
This means that the respondents consider website design and features of the product is
important in purchasing online with a total weighted average of 4.38% or a verbal
interpretation of Agree.
CHAPTER V
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Conclusion
Online shopping is becoming more popular day by day with the increase in the usage of
World Wide Web known as www. Understanding customer’s need for online selling has
become challenge for marketers. Specially understanding the consumer’s attitudes towards
online shopping , making improvement in the factors that influence consumers to shop
online and working on factors that affect consumers to shop online will help marketers to
In this research, 83% are male respondents while only 17% are female; respondents are
mostly 21-23 years old and almost are employed. Therefore, we conclude that men really
study by digital marketing agency iProspect, 70% of affluent men prefer to do their
shopping research and purchases online. Moreover, over a quarter of those who
participated in iProspect's study made weekly purchases. Websites are increasingly being
specially designed for phones and tablets, and a slew of Apple and Android Apps are now
dedicated to the mobile experience. These have massively improved the ease of use on
the small screen and meant that the online experience is no longer tied to your desk. More
and more people are shopping across devices, browsing a bit on their phone, maybe adding
to basket or wish list on their tablet and then purchasing later from their desktop PC or
Mac.
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It’s been said before that women shop, men buy. In traditional ready-to-wear stores men
are frequently on a mission – get in, get what they need, get out. The online world is
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