72656044 e Business Research Paper

8/12/2019 72656044 e Business Research Paper

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ABSTRACT:

The research focuses on the consumer behavior while internet shopping. The research explores

the main reason as to why people shop online in Pakistan and what the products they mostly

shop for are. The main reasons what consumers think are the barriers to development of e

commerce in Pakistan are. And people from which income group mostly shop online. All of

these questions are answered through this research.

This research will mainly help the online marketers and vendors in better understanding the

consumer behavior.

RESEARCH TOPIC:

Consumer ehavior while shopping online and the barriers to ! commerce in Pakistan.

HYPOTHESIS:

". #nternet shopping doesn$t depend on income level.

2. #nternet shopping doesn$t depend on age.

3. People do internet shopping not %ust for the sake of convenience.

4. &ain factor restricting the development of ! commerce in Pakistan is not illiteracy.

DEPENDENT VARIABLE:

#nternet 'hopping(

INDEPENDENT VARIABLES:

". #ncome.

). Age

*. Convenience.

+. Prices of product.

,. Product information.

-. 'ecurity of websites.

E-COMMERCE: Consumer Behavior while Shopping Online &Barriers to E-Commerce in Pakistan.


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BACKGROUND OF RESEARCH:

Almost two decades ago e commerce

throughout the world was not considered anessential in running a business but today in

developed countries of the world businesses

are considered to be incomplete if some part

of them is not done virtually. ! commerce in

Pakistan is considered to be in its infant

stage and not well developed enough. And

due to this many businesses in Pakistan

remain behind their counter parts in other

Asian countries like #ndia and &alaysia.

This becomes a barrier towards slow growthand low profit of their business because by

%ust maintaining the business in real world

and not in virtual world they allow

geographical barriers to hinder in the growth

of their businesses. The reasons of slow

growth of e commerce in Pakistan may be

many through this research we areattempting to find out the main reason

behind this restricted growth of e commerce

in Pakistan. ecause until and unless the

reason behind it is unknown the solution

cannot be provided.

'econdly since ecommerce in Pakistan is

not well developed enough the behavior of

internet shoppers is still unknown which is

also a ha/ard for the firms wanting to start ebusiness. Through this research we attempt

to find out the consumer behavior while

doing internet shopping. ecause e

commerce cannot be taken to a next level

until the buyer behavior is unknown.

RESEARCH OBJECTIVES:

0ith keeping in view the problem of low growth faced by e commerce in Pakistan the

ob%ectives of the paper are

To find out the main barrier to the growth of e commerce in Pakistan 1Problem

'tatement2

To find out whether income and age plays a significant role while people shop online

To find out the main reason why people do internet shopping3

RESEARCH METHODOLOGY:

#n order to achieve our research ob%ectives

our targeted population is the general public

in the city of 4arachi. 0e selected a sample

si/e of "55 people which included people of

all ages belonging to different profession

and having different income level. 0e use

Convenience sampling a mix of old middle

and young age customers were selected to

form a sample. 'P'' software is extensively

used for analy/ing and interpreting the

data.

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6orce behind e7commerce and an important role in consumer purchasing decisions.

SURVEY RESULTS

0e did a survey which consisted of a sample si/e of "55. The results that we found out through

the survey are following.

HYPOTHESIS 1

8o9 Age is not a ma%or factor in deciding whether people shop online or not.

8"9 Age is a ma%or factor in deciding whether people shop online or not.

ANOVAb

Model

Sum of

Squares df

Mean

Square F Sig.

1 Regression .985 1 .985 5.432 .022a

Residual 17.765 98 .181

Toal 18.750 99

a. !redi"ors# $%onsan&' ()*

+. ,e-enden aria+le# /nerne so--ing

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P7value is .5)) 1).):2 which is lesser than the significance level of , : therefore we are ;,:

confident that ;


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INCOME * Internet shopping Crosstabulation

%oun

/nerne so--ing

Toal*S

/%M

*

+elo 20000 6 11 17

2000135000 12 2 14

3500150000 19 2 21

5000165000 19 2 21

65001 and

a+oe

19 8 27

Toal 75 25 100

ANOVAb

Model

Sum of

Squares df

Mean

Square F Sig.

1 Regression .798 1 .798 4.356 .039a

Residual 17.952 98 .183

Toal 18.750 99

a. !redi"ors# $%onsan&' /%M*


P7value is .5*;1*.;:2 which is lesser thanthe significance level of , : therefore we

are ;,: confident that =;.< : of the

movement in consumer behavior towardsinternet shopping is explained by income

factor. Therefore we re%ect 8o i.e. #nternet

shopping doesn$t depend on income level.'imilar result is shown by cross tabs and the

graphical presentation .'o we can conclude

that age and income are important factorswhich influence the decision of shopping

online. The people with lower income don$tshop online often because of their low

income as mostly the products available

online are original brands are very expensivehence out of affordable range for low

income groups. Another reason may be that

shopping on internet requires one to have acredit card and most of the people belonging

to low income groups don$t maintain a bank

account or even if they do they don$t applyfor credit cards.

HYPOTHESIS 3

8o9 People don$t shop online for the sake of convenience

8"9 People shop online for the sake of convenience

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P7value is .5)) 1).):2 which is lesser than

the significance level of , : therefore weare ;,: confident that ;=.< : of the

movement in consumer behavior towards

internet shopping is explained by

convenience factor.Therefore we re%ect 8oi.e. People don$t shop online for the sake of

convenienc

6

Do internet shopping because * Internet shopping Crosstabulation

/nerne so--ing

Toal*S ,o inerne so--ing

+e"ause

( 0 25 25

%onenien"e 36 0 36

*as "om-arison of

-rodu"s

18 0 18

oer !ri"es 21 0 21

Toal 75 25 100

ANOVAb

ModelSum of

Squares df Mean Square F Sig.

1 Regression .978 1 .978 5.393 .022a

Residual 17.772 98 .181

Toal 18.750 99

a. !redi"ors# $%onsan&' ,o inerne so--ing +e"ause



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'imilar result is proved by the above graph

more than -5 people from our sample shop

online because is it convenience i.e. it

surpasses all geographical barriers saves

times purchases can be made at any time be

it day or night.

HYPOTHESIS 4

8o9 The main barrier restricting the development of e commerce #n Pakistan is not illiteracy.

8"9 The main barrier restricting the development of e commerce in Pakistan is illiteracy.

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8

ANOVAb

Model

Sum of

Squares df Mean Square F Sig.

1 Regression .986 1 .986 4.237 .042a

Residual 22.804 98 .233

Toal 23.790 99

a. !redi"ors# $%onsan&' :9 $(&

+. ,e-enden aria+le# * "omm in !a;isan is ell deelo-edur another

important finding is

that most of the

people while

shopping online

shop from websites

that are certified

and recogni/ed. 'o

that means for ,;:

10

$o" many times you actually buy a pro!uct#

Frequen"

!er"en

alid

!er"en %umulaie !er"en

alid ( 26 26.0 26.0 26.0

(las 29 29.0 29.0 55.0

34 imes 14 14.0 14.0 69.0

alf e

imes

30 30.0 30.0 99.0

neer 1 1.0 1.0 100.0

Toal 100 100.0 100.0


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of the people from our sample are really concerned about security and privacy issues related to

shopping online.

?ow about the most important result from our survey that will help the online marketers and the

vendors in making the decision of starting an e business. That is what people really shop foronline. The results show that almost +5: of the people in Pakistan shop for software and "+: of

the people shop from clothes and dresses.

Frequen"

!er"en

alid

!er"en %umulaie !er"en

alid ( 25 25.0 25.0 25.0

>ouseolds 4 4.0 4.0 29.0

?eau -rodu"s 5 5.0 5.0 34.0

%loes and

dresses

14 14.0 14.0 48.0

?randed -rodu"s 12 12.0 12.0 60.0

sof ares 40 40.0 40.0 100.0

Toal 100 100.0 100.0

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The results show that most of the people

when they visit a website for purchasing a

product come to know about that website

from a friend. And even if they come across

online ads they don$t visit those websites.

The reason may be they don$t trust the

advertisements and since e commerce in

Pakistan is not well developed stated in

literature survey and proved by the findings

of the research@ people may be concerned

about the security issues of the websites they

visit for the first times. 0hereas when the

websites are recommended by their friends

and peers they feel satisfied and secure to

shop from them because their friends are the

satisfied shoppers of that website and their

opinion and advice can be trusted

completely

.

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AN IM%O&AN& '(E&ION) CAN E COMMECE IN %A+I&AN ,E CONIDEED

-E.. DEVE.O%ED#

Frequen" !er"en

alid!er"en %umulaie !er"en

alid o 61 61.0 61.0 61.0

Some

a

39 39.0 39.0 100.0

Toal 100 100.0 100.0

The research also shows a very

important result that -": of the

people don$t think that e commerce in

Pakistan is well developed which is

also stated in the literature review and

is proved through previous researches

C>?CB'#>?9

6rom the research we can conclude that age

and income are important factors which

influence the decision of shopping online.

The people with lower income don$t shoponline often because of their low income as

mostly the products available online are

original brands and people belonging to low

income groups prefer to shop from black

markets( where copies of branded products

are available easily at very low prices. Then

people belonging to age group of ),7+, are

the people who mostly shop online and we

can consider that this is so because people

belonging to higher age group don$t havemuch knowledge about technology and

believe in shopping the traditional way. The

answer of why people shop online is also

answered in this research@ people do so

because of convenience as shopping online

surpasses all the geographical you can sit in

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Asia and shop from !uropean markets at

any time. ou can sit in your living room

and choose from a wide range of products

so the main reason of people logging on to

the internet for shopping is convenience(.

Another main cultural aspect of Pakistani

society is that they rely more on the advice

given by their friends and family rather than

believing an advertisement no matter how

attractive it is. That$s why when people go

online shopping they mostly visit those sites

that are advised by their friends trusting

their opinion that the website is safe.

Pakistanis while shopping online mostly

shop for software that may be because emarkets in Pakistan is not so well developed

that they offer a wide range of products and

the delivery channels that the sites may use

may not be "55: efficient whereas the

software is directly downloadable there and

then as soon as you pay for the product the

product is yours.

The survey also shows that ecommerce is

not very much developed in Pakistan. 0hy3because of illiteracy. And even if people are

literate they are not educated enough to

know and understand what e commerce

really is. 6or example an "< year old

working in a workshop who has passed his

"5thgrade exam. Although he is literate but

he is not educated or learned enough to

understand what e commerce is. Then

another reason for slow development of e

commerce is traditionalist nature ofPakistani society many people in Pakistan

have their family business and have a very

loyal set of clients they earn so much profit

from carrying on the business %ust like that

they don$t find the need to go Dinternet$. The

people in Pakistan when go shopping

mostly shop from a set of particular shops

because they have been shopping from their

since a long time and have developed the

relationship with the shopkeepers over a

long period of time they trust them that the

product they are getting will be worth their

money and the shopkeeper will not deceive

them. Also most of the people feel more

comfortable while dealing with shopkeeper

face to face.

'o the solution to these problems cannot be

provided readily. #t takes a long period of

time to increase the literacy rate of the

country and traditions only change when

people are more educated and open enough

to think that it is perfectly ok if they don$t

follow the same line of traditions and trying

a new thing is good for them. ut making

internet more safe and educating people

about e commerce will surely make the

businesses turn their ships towards e

business.

Bibliography

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Advantages of Online Shopping.

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Briody. (1999). Customer service

Quality in e-business.London.

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!o. (2000). Integration of

Quality re ! ost Sale.!ina.

onn"llan, . #. (2001). Challenges

to E-"usiness.!i*ago.

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+ti-rr", . . (2001). Customer

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"aland.

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72656044 e Business Research Paper