Keyword

Price, Ease of Use, Usefulness, Purchase Intention, Online Shopping.

Abstract

Online shopping is overgrowing around the globe. Consumers unite and combine their purchasing power in order to bargain for a significant volume discount from a seller. On the other hand, it also helps the new seller to enter the competitive markets easily. The objective of this study is to examine the relationships among the factors and to assess how it influences consumers' purchase intention on online shopping. The main problem that online retailer faced nowadays is how to attract the consumer's purchase intention toward online shopping especially among the student because we know that most student does not have fixed income. So it will prevent them from spending more on online shopping. In order to make a business successful, some good strategy needs to be implemented, and the retailer does not only need to acquire the new customers but also need to retain the existing customers. Purchase intention as the possibility of purchasing a special brand in a product category during purchase. There were 200 sets of the questionnaire had been distributed randomly among the PPIPT students. The present study used descriptive statistics, regression, and Pearson correlation. In short, price, ease of use and usefulness can only explain (R Square = 0.973) variation of factors influencing consumers' purchase intention towards online shopping. Durbin-Watson considers the accepted range of 1.486 shows there was no autocorrelation problem with data. The condition index= 77.598, VIF= 1-10, and tolerance fell =0.1-10 within the accepted range. F-value is found to be a significant level (Sig. F = 0.000). The regression model used in this study is adequate, the model is fit. As a conclusion, a lack of confidence and trust in utilizing the Internet as a shopping channel. The ethnic group also dominated by Malay only which could be a source of bias.


Full Text : PDF

References
  1. Ailawadi, K. L., Neslin, S. A., & Gedenk, K. (2001). Pursuing the value-conscious consumer: store brands versus national brand promotions. Journal of marketing, 65(1), 71-89.
  2. Alreck, P. L., & Settle, R. B. (2002). The hurried consumer: Time-saving perceptions of Internet and catalogue shopping. Journal of Database Marketing & Customer Strategy Management, 10(1), 25-35.
  3. Alsughayir, A., & Albarq, A. N. (2013). Examining a theory of reasoned action (TRA) in internet banking using SEM among Saudi consumer. International Journal of Marketing Practices, 1(1), 16-30.
  4. Brassington, F., & Pettitt, S. (2006). Principles of marketing. Pearson Education. 
  5. Chang, M. L., Lai, M., & Wu, W. Y. (2010). The influences of shopping motivation on adolescent online-shopping perceptions. African Journal of Business Management, 4(13), 2728-2742.
  6. Crosno, J. L., Freling, T. H., & Skinner, S. J. (2009). Does brand social power mean market might? Exploring the influence of brand social power on brand evaluations. Psychology & marketing, 26(2), 91-121.
  7. Davis, F. D. (1989). "Perceived Usefulness, perceived ease of use, and user acceptance of information technology." MIS Quarterly, Vol. 13 No.3, pp. 319-340
  8. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340.
  9. El-Ansary, O., & Roushdy, A. S. (2013). Factors Affecting Egyptian Consumers' Intentions for Accepting Online Shopping. The Journal of American Academy of Business, 19(1), 191-201. Erdogmus, I., & Cicek, M. (2011). Online Group Purchasing: What is There for the Consumers? Procedia Social and Behavioral Science, 24, 308-316.
  10. Foley, P. & Sutton, D. (1998). Boom time for electronic commerce-rhetoric or reality. Business Horizons, pp. 21-30.
  11. Gefen, D., Karahanna, E., & Straub, D. W. (2003). Trust and TAM in Online Shopping: An Integrated Model. MIS Quarterly, 27(1), 51-90.
  12. Ha, S., & Stoel, L. (2008). Consumer e-Shopping Acceptance: Antecedents in a Technology Acceptance Model. Journal of Business Research, 62(5), 565–571
  13. Haque, Ahasanul and Khatibi, Ali, (2006). The Study of the Behaviour of Malaysian Consumers Towards Online Shopping. Asian Journal of Information Technology, 5: 12-19
  14. Harn, A.C.P., Khatibi, A. and Ismail, H. (2006) “E-Commerce: A Study on Online Shopping in Malaysia.” Journal Social Science, Vol. 13 No. 3, pp. 231-242.
  15. Heijden, H., Verhagen, T. V., & Creemers, M. (2003). Understanding online purchase intentions: Contributions from technology and trust perspectives. European Journal of Information Systems, 12(1), 41-48.
  16. Iqbal, S., Rahman, K., & Hunjra, A. I. (2012). Consumer Intention to Shop Online: B2C E-Commerce in Developing Countries. Middle-East Journal of Scientific Research, 12(4), 424-432.
  17. Kamarohim, N.A.B. (2003), "Factors influencing the purchased of products or services through the internet," Available at:http://etd.uum.edu.my
  18. Kim, E., & Kim, Y. (2004). Predicting Online Purchase Intentions for Clothing Products. European Journal of Marketing, 38(7), 833-897.
  19. Kotler P. & Armstrong G. (2010), "Principles of Marketing," New Jersey: Pearson Prentice Hall.
  20. Kotler, P., & Keller, K.(2006). Marketing Management (12ed.). Upper Saddle River, New Jersey: Pearson Education Inc
  21. Koufaris, M., & Hampton-Sosa, W. (2004). The Development of Initial Trust in an Online Company by New Customers. Information and Management, 41, 377-397
  22. Koyuncu, C., & Bhattacharya, G. (2004). The impacts of quickness, price, payment risk, and delivery issues on on-line shopping. The Journal of Socioeconomics, 33(2), 241-251.
  23. Kwek, C. L., Dazmin, D., Tan, H. P., Keoy, K. H., & Pazdil, H. (2011). Perceived Risk, Perceived Technology, Online Trust for the Online Purchase Intention in Malaysia. International Journal of Business and Management, 6(6), 169-182.
  24. Leeraphong, A., & Mardjo, A. (2013). Trust and Risk in Purchase Intention through Online Social Network: A Focus Group Study of Facebook in Thailand. Journal of Economics, Business, and Management, 1(4), 314- 318
  25. Levy, M. & Weitz, B. (2012), Retailing Management, New York: McGraw-Hill.
  26. Lim, W. M., & Ting, D. H. (2014). Consumer Acceptance and Continuance of Online Group Purchasing. Journal of Computer Information Systems, 87-96.
  27. Mastercard Worldwide Insights (2008).Online shopping in Asia-Pacific – patterns, trends and future growth. Retrieved from http://www.mastercard.com/
  28. Monsuwe, T. P. Y., Dellaert, B. G. C., & Ruyter, K. D. (2004). What drives consumers to shop online? A literature review. International Journal of Service Industry Management, 15(1), 102-121.
  29. Pavlou, P. (2003). Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model. IJEC, 7(3), 197-226.
  30. Pavlou, P., & Gefen, D. (2004). Building Effective Online Market Places with Institution-based Trust. Information Systems Research, 15(1), 37-59.
  31. Pi, S.-M., Liao, H.-L., Liu, S.-H., & Lee, I.-S. (2011). Factors Influencing the Behavior of Online Group Purchasing in Taiwan. African Journal of Business Management, 5(16), 7120-7129.
  32. Poddar, A., Donthu, N., & Wei, Y. (2009).Web Site Customer Orientations, Web Site Quality, and Purchase Intentions: The Role of Web Site Personality. Journal of Business Research, 62, 441-450.
  33. Rahman, M., Khan, A., & Islam, N. (2013). An Empirical Study on Revealing the Factors Influencing Online Shopping Intention Among Malaysian Consumers'. Journal of HSSR, 1(1), 9-18.
  34. Rajkumar, T.M. (2001), "E-procurement business and technical issues," Information Systems Management, Vol. 18 No. 4, pp. 52-61
  35. Renny, Guritno, S., & Siringoringo, H. (2013). Perceived Usefulness, Ease of Use, and Attitude Towards Online Shopping Usefulness Towards Online Airlines Ticket Purchase. Procedia - Social and Behavioral Sciences, 81, 212–216
  36. Salisbury, W.D., Pearson, R. A., Pearson, A.W., & Miller, D. W. (2001). Perceived Security and World Wide Web Purchase Intention. Industrial Management & Data Systems, 101, 165-176.
  37. Sam, M. F. M., and Tahir, Md. N. H. (2009). Website Quality and Consumer Online Purchase Intention of Air Ticket. International Journal of Basic & Applied Sciences, 9(10), 20-25.
  38. Samadi, M.,& Nejadi, A. (2009). A Survey of the Effect of Consumers' Perceived Risk on Purchase Intention in e-Shopping. Business Intelligence Journal, 2(2), 261-275
  39. Sanchez-Franco, M., & Roldan, J. (2005). Web Acceptance and Usage Model: A Comparison Between Goal-Directed and Experiential Web Users. Internet Research, 7(3), 21-48.
  40. Selamat, Z., Jaaf, N., & Ong, B. (2009). Technology Acceptance in Malaysian Banking Industry.  European Journal of Economics, Finance and Administrative Sciences, 1(17), 143-155
  41. Shah, H., Aziz, A., Jaffari, A. R., Waris, S., Ejaz, W., Fatima, M. and Sherazi., K. 2012. The Impact of Brands on Consumer Purchase Intentions. Asian Journal of Business Management. 105-110.
  42. Shergill, G.,& Chen, Z. (2005). Web-based Shopping: Consumers' Attitudes Towards Online Shopping in New Zealand. Journal of Electronic Commerce Research, 6(2), 79-94.
  43. Taylor Nelson Sofres Sdn Bhd. (2000). TNS interactive global e-Commerce report July. Available at:http://worldwide.tnsofres.com/ger/malaysia. htm.
  44. Wakefield, L.,& Inman, J. (2003). Situational price sensitivity: The role of consumption occasion, social context, and income. Journal of Retailing, 79(4), 199-212.
  45. Yang, L.,& Mao, M. (2014). Antecedents of Online Group Purchasing Behavior: From Price Leverage and Crowd Effect Perspectives. PACIS. Chengdu, China