The Impact of Online Shopping on Consumer Behavior

University of Bedfordshire-Ajman Campus BA (Hons) Project Submitted to Dr. Tariq As a Requirement Unit code: Marketing Research (Morning Class) ________________________________ Student Name:| Registration Number:| Amanullah Ashraf| 1033872| Acknowledgement First I would like to Thank Allah for giving me knowledge. I am very Thankful to our subject teacher Dr. Tariq for guiding and helping me in this Research. I gratefully thank my parents, Friends and all classmates who cooperated with me in the time when I needed them. Also I would like to thank all the Respondents who gave their time in filling the Questionnaire.Abstract The purpose of this dissertation is to identify what are the factors that influence the consumer behavior while they are shopping online. Because now a day’s online shopping is increasing day by day . We collected both primary and secondary Data. The survey was conducted in Alain Mall through questionnaire and all the factors that can influence consumer beha vior or change consumer behavior because of online shopping where given in the questionnaire. So we found that the the online shopping has a big impact on consumer behavior in many different ways. Table of contentsPage No. 1.Introduction 1. 1 Company Profile1 1. 2 Statement of the problem1 1. 3 Objectives of the study1 1. 4 Scope & limitations of the study2 1. 5 Significance of the study2 1. 6 Define the terms3 2. Review of Related Literature 2. 1 Theoretical & Conceptual literature3 2. 2 Related Studies5 2. 3 Schematic Diagram6 2. 4 Synthesis7 3. Research Methodology 3. 1 Research design7 3. 2 Respondents of the study8 3. 3 Research Instrument8 3. 4 Validity of Research Instrument9 3. 5 Data gathering procedures9 3. 6 Statistical Analysis9 4.Presentation, Analysis and Interpretation of Data 5. Summary of findings, conclusions and Recommendations 6. 1 Summary of findings22 6. 2 Conclusions23 6. 3 Recommendations24 6. References25 List of Tables & Graphs Fig 1. Gender10 Fig 2. Natio nality11 Fig 3. since when you are shopping online12 Figs 4. What are the goods that you purchase online13 Fig 5. Online shopping saves my time14 Fig 6. making payments is easy through online shopping15 Fig 7. The delivery of the product is too long16 Fig 8. I cannot bargain online17 Fig 9. In online shopping we get more discounts and offers18 Fig 10.I believe that online shopping is better than physical stores19 Fig 11. I has access to famous brands through online shopping20 Fig 12. security is major concern in shopping online21 List of Appendices Appendices 126 Appendices 229 Appendices 333 1. Introduction 1. 1 Company Profile Souq. com is one of the largest online shopping Business in UAE which is safe and secure and it was established in 2005 and through souq. com millions of people buy or sell their products Daily and from the day when this online shopping Business came in to being it is improving and providing quality service to customers and souq. om is famous for its trusted platform. Now souq. com is one of the largest ecommerce site among the Arabs it includes the countries such as Egypt, Jordan and Saudi Arabia. 1. 2 Statement of the Problem The Impact of online shopping on consumer behavior in souq. com. In this research we need to understand what are the actual factors according to which the consumers do online shopping and how their shopping behavior is affected. 1. 3 Objectives of the study To study the consumers online shopping behavior. To know the factors that influence online consumers and shoppers. To study do onsumers prefer online shopping over Physical stores. 1. 4 Scope and limitations of the study The scope of the study is to understand that the Internet is the latest medium through which consumers demand for their needs and wants that’s why the online sellers should know what are the factors that influence the online consumers and also there are some factors according to which consumers buy their products online and it is very important for the online sellers to take that factors in to action so that they can satisfy the consumers needs and wants and enter in to the online market competition Easily.There are many factors that will influence the online consumers but we in this research will select only the main factors that will influence the consumers so therefore we will limit these factors to few so that we can understand its effect on online consumers and also we will limit the consumers characteristics’ and buying process by seeing how they are dealing with the service or product they bought but not by seeing the consumer theories or models. 1. 5 Significance of the studyThis research will not only increase the impact of online shopping on consumers but it will also help the people who are too busy to do shopping online in some minutes it will save their time and will also help the disabled people more over because if they are not able to walk or had other problem they will most probably prefer the online shopping and also this research will clearly show how the people has changed from physical stores to the online shopping. 1. Definitions of the terms Trusted Platform: This means that the customers have Trust on the souq. com organization. Physical Stores: The place where we go for shopping (to buy or sell something). Impact: The affect or change that one thing bring in another thing 2. Literature review 2. 1 Theoretical conceptual framework The theoretical and conceptual framework includes all the theories and concepts related to online shopping and its impact on consumer behavior.Warner defines consumer behavior as â€Å"the study of the mental and physical activities performed by individuals or groups that result in decisions or actions associated with the purchase, use or disposal of goods and services†. The internet is now famous for its distribution channel and e-commerce transaction and the price and trust is considered as important factors that influence t he consumers.According to study â€Å"Analysis of consumer behavior online† This study will tell the main characteristics of online consumers behavior and will test how they are found and the information of the product will be evaluated and compared and the new survey conducted will be compared with the old consumer theories in order to take positive actions in the field of technology and strategies and in this study the group focus will be on people aged from 19 to 30 interested in having related products.Dejan Petrovic,(2006) According to the study of shun&Yunjiee,(2006) said that there are some products which can be sold more in online shopping such as books, software’s, music etc. Because this are the products which people will buy without any personal research and all the features and the quality can be seen from its pictures and descriptions etc.According to the research study† Motivators and decisional influencers of online shopping† Online shopping is an innovation for the marketers and now a days it is very important for retailers the online shopping because they had found more values and benefits in it, this study is made in order to find what are the factors that encourage the consumers in online shopping. Bekramjit Rishi,(2010). According to the Kamali and Loker, (2002) the online shopping has increased their revenue more than their previous revenue so this means that online shopping has increased the level of consumer behavior because it is safer nd secure then the past. According to Pehr Luedtke , (2010)â€Å"The findings of the 2010 Social Shopping Survey validate what we are hearing from retailers and brands – that customer reviews have become a critical piece of the marketing puzzle, based not only on consumer demand but also on the sales they deliver,† According to Lauren freedman, (2010) â€Å"Whereas once online product research was left to the technology savvy looking to make a major purchase, it is now part of the mainstream shopping experience for all product categories as consumers have taken control powering their own product research,† 2. 2 Related studiesStudy 1 According to the â€Å"2010 social shopping study Reveals changes in consumer’s online shopping Habits and Usage of Customer Reviews† This study tells that how online shopping has increased from the past. This research focused on two important factors such as why consumers are shopping online and when consumers are doing online research for shopping and what are the expectation of the consumers and the Result was that the online research is essential to the consumer behavior while they are shopping online and it also revealed that the consumers who want to buy products like to do research personally.This study also stated that consumers prefer online research because of time saving, confidence and satisfied information and also the survey stated that the famous site where consumers do research online are search engine, brand sites, retailers sites, Amazon. com,facebook,Twitter etc. Study 2 According to the study† Impact of demographics on online buying behavior towards different products† In this study they researched that how consumers are investing their money on online shopping by keeping the factors such as igh class, Medium class and Low class in this study the marketers came to know about the demographics of people and this lead to an increase in the financial position of the online shopping business. A. M. Sakkthivel,(2009) 2. 3 Schematic Diagram Independent variable Dependent variable Online Shopping Consumer Behavior In this research the Dependent variable is consumer behavior and Independent variable is online shopping which means that the online shopping will have impact on the consumer behavior in many important ways. . 4 Synthesis From the related literature we came to know that due to the latest technology applied by retailers of online shoppin g and the service they provide in an efficient way and safe way and maintain a good relationship with consumers and promote the goods in the best way which attract consumers and also online shopping save the time of consumers and also conducting survey about the value of consumers. This all above factors will have an impact on the consumers Behavior towards online shopping. So if the souk. om recommends all the above factors in their online shopping business then they will surely attract consumers towards their online shopping business and this will surely increase their reputation in the online market and also their financial position will increase. 3. Research Methodology 3. 1 Research Design Research design is to search, find, collect and investigate the information that we need to obtain for a related topic john Wiley & sons, (2004). The research design in this research is descriptive research design. A escriptive research is the type of data analysis, information and questions that is done for a selected topic it mainly talks about â€Å"what is†. Robert G. petzold, (1998). 3. 2 Respondents of the study Here we will apply our factors of the topic to the kind of consumers who use internet online for shopping. There will be specific type of people selected. Sekaran & Bougie, (2010). The following will be the methods of our sample. Our sample site: we will conduct the survey in Alain, UAE. Our sampling unit: Alain Mall sekaran & Bougie, (2010).Our sample size: 30 respondents. 3. 3 Research Instrument We have selected one of the most flexible types of research and that is questionnaire which will be used in order to collect the primary data and also we will use interview guidelines if needed. The survey will be only done in Shopping Mall in order to know the impact of online shopping on consumer behavior. Using 5-point linkert scale we measure the independent and dependent variables and we will measure consumer behavior by 12 different types of questio ns which will be more effective.This type of scale was used by Andrew martin &Stephen legg,(2002) 3. 4 Validity of Research Instrument The questionnaire is validated by three professors from the department of markrting research. 3. 5 Data collection procedures For the purpose of research we can collect data in two ways and they are primary data and secondary data Primary Data: we collected the data through observations and questionnaires and questionnaires is the most satisfactory way to collect data for our topic. We analyze our respondents and compare them with the factors. Lesley Barker,(2003).Secondary Data: This is mainly the general information about the research topic and here the data is in the form of journals such as written or non written, multiple source and surveys etc Anders haslinger et al(2007). 3. 6 Statistical Tool Analysis We will analyze the Data by Graph, Mean and standard deviation by using the frequency and percentage method. 4. Presentation, Analysis and Inte rpretation of Data 1. Gender Question| Frequency| Percentage| Male| 21| 70| Female| 9| 30| Total| 30| 100| Mean| Standard Deviation| 15| 8. 485281374| 2. Nationality Question| Frequency| Percentage| Asians| 24| 80| Arabs| 6| 20| Total| 30| 100|Mean| Standard Deviation| 15| 12. 72792206| 3. Since When you are Shopping Online Question| Frequency| Percentage| 1 month| 9| 30| 1-6 month| 0| 0| 6-12 month| 0| 0| 1 year| 8| 26. 6| 3 years| 13| 43. 3| 6 years or more| 0| 0| Total| 30| 100| Mean| Standard Deviation| 5| 2. 645751311| 4. What are the goods that you purchase online Question| Frequency| Percentage| Software’s| 3| 10| Tickets| 6| 20| Gifts| 0| 0| Books| 8| 26. 66667| Music| 3| 10| Electronics| 10| 33. 3333| Total| 30| 100| Mean| Standard Deviation| 5| 3. 082207001| 5. Online Shopping Saves my Time Question | Frequency| Percentage| Strongly Agree| 23| 76. 66667|Agree| 3| 10| Neutral| 4| 13. 3333| Disagree| 0| 0| Strongly Disagree| 0| 0| Total| 30| 100| Mean| Standard Deviat ion| 6| 11. 26942767| 6. Making payment is easy through online shopping Question | Frequency| Percentage| Strongly Agree| 18| 60| Agree| 7| 23. 3333| Neutral| 5| 16. 66667| Disagree| 0| 0| Strongly Disagree| 0| 0| Total| 30| 100| Mean| Standard Deviation| 6| 7| 7. The Delivery of the Product is too long. Question | Frequency| Percentage| Strongly Agree| 7| 23. 3333| Agree| 4| 13. 3333| Neutral| 10| 33. 3333| Disagree| 0| 0| Strongly Disagree| 9| 30| Total| 30| 100| Mean| Standard Deviation| 6| 2. 64571311| 8.I cannot Bargain online question| Frequency| Percentage| Strongly Agree| 4| 13. 3333| Agree| 0| 0| Neutral| 12| 40| Disagree| 0| 0| Strongly Disagree| 14| 46. 66667| Total| 30| 100| Mean| Standard Deviation| 6| 5. 291502622| 9. In online Shopping we get more discounts and offers Question | Frequency| Percentage| Strongly Agree| 18| 60| Agree| 7| 23. 3333| Neutral| 5| 16. 66667| Disagree| 0| 0| Strongly Disagree| 0| 0| Total| 30| 100| Mean| Standard Deviation| 6| 7| 10. I believe that online shopping is better than shopping at physical store Question | Frequency| Percentage| Strongly Agree| 20| 66. 66667| Agree| 7| 23. 333| Neutral| 3| 10| Disagree| 0| 0| Strongly Disagree| 0| 0| Total| 30| 100| Mean| Standard Deviation| 6| 8. 888194417| 11. I have Access to famous Brands through online shopping Question | Frequency| Percentage| Strongly Agree| 22| 73. 3333| Agree| 8| 26. 66667| Neutral| 0| 0| Disagree| 0| 0| Strongly Disagree| 0| 0| Total| 30| 100| Mean| Standard Deviation| 6| 9. 899494937| 12. Security is major concern in shopping online Question | Frequency| Percentage| Strongly Agree| 13| 43. 3333| Agree| 7| 23. 3333| Neutral| 10| 33. 3333| Disagree| 0| 0| Strongly Disagree| 0| 0| Total| 30| 100| Mean| Standard Deviation| | 3| 5. Summary of Findings, Conclusions and Recommendations. 5. 1 Summary of Findings In the table of â€Å"gendre†we came to know that 70% of respondents where male and 30% respondents where female. In the table of â€Å"Nati onality† we came to know that 80% of the respondents where Asians and 20% Arabs. In the table of â€Å"since when you are shopping online† we came to know that 43. 3% respondents where shopping online since 3 years and 30% since 1 month and 26. 6 since 1 year. In the table of â€Å"what are the goods you purchase online â€Å"we came to know that 33. 3 % respondents buy electronics in online shopping and 26. % Books and 20% Tickets and 10% software’s. In the table of â€Å"online shopping saves my time â€Å"we came to know that 76. 6% respondents strongly agree and 13. 3% Neutral and 10% agree. In the table of â€Å"Making payments is easy through online shopping â€Å"we came to know that 60% respondents strongly Agree and 23. 3% Agree and 16. 6 Neutral. In the table of â€Å"The Delivery of the product is too long â€Å"we came to know that 33. 3% respondents are Neutral and 30% strongly disagree and 23. 3% strongly Agree and 13. 3% agree. In the table of â€Å"I cannot bargain online† we came to know that 46. 6% respondents strongly disagree and 40% Neutral and 13. % strongly agree. In the table of â€Å"In online shopping we get more Discounts and offers† we came to know that 60% respondents Strongly Agree and 23. 3% Agree and 16. 6% Neutral. In the table of â€Å"I believe that online shopping is better than physical stores† we came to know that 66. 6% respondents Strongly Agree and 23. 3% Agree and 10% are Neutral. In the table of â€Å"I have access to famous brands through online shopping† we came to know that 73. 3% respondents Strongly Agree and 26. 6 Agree. In the table of â€Å"Security is major concern in online shopping â€Å"we came to know that 43. 3% respondents Strongly Agree and 33. % Neutral and 23. 3% Agree. 5. 2 Conclusions After finishing the Research we came to know that more of the consumers are satisfied with online shopping in many different ways and also people will prefer t he online shopping more and more in the near future but there was some limitations such as some of the respondents said that they don’t feel secure while shopping online and also some respondents where not satisfied with the delivery time. So now we should concentrate more on the Security and delivery to maintain and satisfy our consumers so that the online shopping will give 100% positive results. . 3 Recommendations As i said in the above paragraph that there are some respondents which are not feeling secure while shopping online and also the late Delivery of products. So I recommend that the souk. com should take certain steps such as when a consumer select and want to buy a product and make payments the souk. com should give the insurance of that product so that if the products is lost or does not reach the consumer he will be provided other same product and also the souk. com should fix best security programs so that no information of the consumers will be licked or Hack ed.For the late Delivery of the products I recommend that the souk. com should concentrate more on Transportation and increase their transportation such as they should buy new cars, scooters and ships so that they can make the products available for consumers on time. References Warner. Malcolm, 2002, â€Å"International Encyclopaedia of Business & Management†, Volume 2, page 1034. Petrovic Dejan, 2007 http://analogik. com/articles/227/analysis-of-consumer-behaviour-online Rishi Bekramjit, 2010, â€Å"Motivators and decisional influencers of online shopping†, International Journal of Business Innovation and Research 2010 – Vol. , No. 3   pp. 195 – 209 Loker and kamali, (2002) â€Å"E-Commerce & Security & Consumer Behavior† http://www. lotsofessays. com/viewpaper/1693412. html Sakkthivel. A. M,(2009), â€Å"Impact of demographics on online buying behavior towards different products†, International Journal of Electronic Finance 2009  œ Vol. 3, No. 3   pp. 284 – 296 Freedman Lauren, 2010, â€Å"2010 Social Shopping Study Reveals Changes in Consumers’ Online Shopping Habits and Usage of Customer Reviews† http://www. e-tailing. com/content/? p=1193. Sons & Wiley john(2004),†Asking Questions† http://books. google. ae/books? d=YXKbTx2j9i4C&q=Quantitative+researchers+have+openly+discussed+how+people+think+for+some+time#v=onepage& Petzold G. Robert â€Å"Writing a Critical Review of Descriptive or Experimental Research†http://www. jstor. org/stable/40318228 Bougie roger & sekaran uma (2010), â€Å"Research methods for business† http://www. oppapers. com/essays/What-Is-Scientific-Research-Process/660594. Stephen legg &Andrew martin (2002), â€Å"Investigating the inward sounds of Outward Bound†http://findarticles. com/p/articles/mi_6931/is_2_6/ai_n28132634/? tag=content;col1 Barker Lesley (2003), http://www. ehow. om/about_4685513_primary-data_. html Haslinger Ande rs et al(2007), PdF file Company profile (www. souq. com) Appendices 1 Questionnaire In this survey we are going to collect data on the impact of online shopping on consumer behavior and the information collected will be used for the Marketing Research Project and strictly the information collected will be kept confidential. Respondents no 1. Gender Male Female 2. Nationality 3. since when you are Shopping Online? 1 Month 1-6 Month 6-12 Month 1 Year 3 Years 6 Years or more . What are the goods that you purchase online? Software’s Tickets Gifts Books Music Electronics If Other Specify The following questions will be rated according to a 5 point scale such as 5 – Strongly Agree 4 – Agree 3 – Neutral 2 – Disagree 1 – Strongly Disagree | | Strongly Disagree| Disagree| Neutral| Agree| Strongly Agree| 5| Online Shopping saves my time. | | | | | | 6| Making payment is easy Through online shopping. | | | | | | 7| The Delivery of the product is too l ong. | | | | | | 8| I cannot