The Effectiveness Of Online Shopping

Published Date: 02 Nov 2017

This chapter will illustrate the way that the research has been conducted. It will also aim at explaining the methodology used to conduct this study on online shopping. The target of this study is to assess the behavior and attitude of online and non-online shoppers. Thus, the methodology will provide a framework to assess the usability, effectiveness of online shopping.

3.1 Aim

This thesis is intended to analyze the current position of online shopper’s attitude and behavior in Mauritius. This study will also identify all the factors that influence the consumers toward online shopping.

3.2 Objectives of the study

The whole objective of this study is to have a clear situation of the development of online shopping in Mauritius.

To understand the internet usage pattern in Mauritius.

To assess the general awareness of internet users toward online shopping.

To identify the barriers of online shopping.

To differentiate between online shopping and retail shopping.

To gain insight about the demographic profile of internet users.

To increase understanding of consumer’ attitude and behavior toward online shopping.

3.3 Research process.

The research process will be based on the following stages;

Stage 1; formulate research problem

Stage 2; extensive literature review

Stage 3; developing the hypothesis

Stage 4; determine the research design

Stage 5; determine the data collection method and forms

Stage 6; collecting data

Stage 7; analyze and interpret the data

3.4 Research problem

There have been many studies that have been conducted regarding to the attitude, behavior and intention of people to shop online. Due to the rapid development of technologies, we see that companies also are interested to create a websites where they can sell their product online itself thus this leads to an edge in the fierce competition. As a result, there are so many potential consumers that it is of utmost importance to understand exactly what the consumer wants and requirements.

However, this study will also provide some insights about how people feel and respond to online shopping. It will also laid emphasis about the different perception about online shopping and retail shopping. Moreover, in the analysis and findings section, it will indicate whether the internet users have already adopted online shopping or not. The barriers of online shopping will also be explored.

3.5 Literature review

An extensive literature review has been carried out as it helps to get a better insight and an abundant knowledge regarding to the previous research that has been done in the chosen field.

Moreover, a funnel approach has been adopted, starting from a brief definition of online shopping then coming to a broader discussion about the factors that affect the attitude and intention of those who shop online.

In the same line of thought, the sources of the theory part of the research come from books, journals, articles and also research websites.

3.6 Hypothesis development

There are 6 hypotheses in this study. These are originated from the acceptance of online shopping.

H1; Is there a relationship between age and attitude towards online shopping.

H2; Is there a relationship between income and attitude toward online shopping.

H3; Is there a relationship between perceived ease of use and usefulness.

H4;Is there a relationship between attitude toward using online shopping and intention to shop online.

H5; is there a relationship between risk and intention to shop online?

H6; current internet shoppers’ intent to shop more online than those who haven’t shopped online yet.

3.7 Methodologies

3.7.1 Research design

The research design is a step that is used for data collection and analysis. There are 3 type of classification namely; exploratory, descriptive and explanatory. For this study, the exploratory and descriptive design has been used.

A research by Mark Saunders et al (2004 cited Robson 2002, p.96) stated that ‘exploratory research is a valuable means of findings out what’s happening, to seek new insights, to ask and to assess phenomena in new light’. Thus as a result, the exploratory helps at gaining additional information about a topic and also helps at generating possible hypothesis to test.

A research by mark Saunders et al (2004 cited Robson 2002, p. 97) stated that ‘the objective of descriptive research is to portray an accurate profile of persons, events or situation’. Thus, this gives a perfect image of the phenomena on which data needs to be collected. It is used to describe the answers of some questions such as who, what, where, when and how.

3.7.2 Research Approach

There are 2 types of research approach that is deductive and inductive approach. The deductive method is used to develop a theory and hypotheses and also used to design a research strategy, whereas the inductive method is used to collect data and develop theory from the data analysis.

A deductive approach has been carried out for this particular research. It is so as the deductive approach starts from a nonconcrete and abstract data and then move on towards actual and realistic facts.

3.7.3 Research type

Research methods can be classified in many ways. However, one of the most common ways that can collect data is by quantitative that is data can be collected in the form of numbers and then there is qualitative methods where data can be collected in the form of words.

Moreover, in this typical research, both quantitative and qualitative method will be used. The qualitative research will focus on subjective data mostly that are not easily coded into numbers. More emphasis will be laid on words and feeling. By this qualitative research, it helps to have a better understanding and insight about the type of attitude and opinion that exits in the market place.

In the same line of thought, the quantitative research method is mainly concerned with numbers and data that are easily quantified. The most popular quantitative method is the survey. However, survey can be in form of telephone interviewing, in- person interviews, face to face interview or by email surveys / online surveys.

Thus, for this research, survey in terms of questionnaire, face to face and online survey was conducted.

3.7.4 Research strategy

According to Mark Saunders (2004 p.100), he stated that, ‘the research strategy is a general plan of how you will go about answering the research question that has been set’. However, there are many types of strategies where data can be collected, for example, case study, experiments, and survey amongst others.

For this particular research, a survey has been conducted where a questionnaire have been designed.

The survey strategies are usually associated with the deductive approach and it is a very popular and common strategy used to gather information

3.8 Sources of data

3.8.1 Primary data

Collection of primary data was done through the administration of questionnaire. However, only the questionnaire was an appropriate way of approaching the topic and collecting information in an appropriate way.

3.8.2 Secondary data

Secondary data have been gathered by books, documents, articles, journals and multiple sources. Moreover, secondary data has been used excessively in the literature review. For the empirical review, most of the data collection was done from the library. Furthermore, data has also been collected at the central statistics board and also la Dounane.

3.9 Data collection method

The method chosen for this study is a questionnaire survey as well as online survey. The questionnaire was designed using both the self-administered and also face to face interviewed.

Well, the place for data collection was mainly everywhere as I have also administered online survey where I have targeted many persons.

3.9.1 Questionnaire design

Questionnaire is a formalize set of questions for obtaining information from respondents. However, the construction of questionnaire is of critical importance. It is so, as it requires common sense, concern for the respondent and also most important a clear concept of the needed information.

At first, information was gathered through informal interview with some friends and colleagues, as they were the potential users of online shopping. This was done so as to ensure that all the issues or factors are being addressed in the survey. The questionnaire was administered so as to collect primary data that is facts, opinion and motives.

The questionnaire was divided into 5 main parts. At start are warm up questions which were used to get the respondents interest and to demonstrate the ease of responding to the questionnaire. Then, it was followed by some additional questions regarding to the topic. Different types of questions had been used, namely multiple choice questions, dichotomous questions, likert scale, closed ended questions and open ended questions.

Section A;

This section dealt with measuring the internet usage patterns and the general awareness of the respondent on online shopping. It is oriented toward collecting data upon the shopping habits of the respondent.

Section B;

This section collected data about online shopping behavior and barriers to online shopping.

Section C;

This section has analyzed the data regarding attitude of internet users toward online shopping.

Section D;

In this unit, all the factors that influence consumers towards online shopping have been examined.

Section E;

This section dealt with the demographic details of the respondent. It will help to understand how people of different age group, education level, income groups view online shopping process.

3.9.2 Pre- testing of the questionnaire

Pre- testing of the questionnaire is very important to know if the questionnaire is collecting the exact information that it was supposed to. However, it also gives an indication about how much time does the respondent take to fill the questionnaire and if all the questions are being clearly understood.

A pilot testing is used mostly so as to identify all the questions that are vague, confusing, misleading and ambiguous. However, for this study, the pilot test was conducted among 5 people. At first it was considered as very boring as there were too many questions thus amendment had to be made. Later on, some questions had to be removed as they were ambiguous. By this pilot testing, I had an indication about the time taken to fulfill this questionnaire and where they did not understand also.

3.10 The sample design/ sampling method

3.10.1 Define population

The target populations are those who are computer literate and having access to internet facilities such as online shopping and also who live in Mauritius.

3.10.2 Sample size

Given that the population is very large, and taking into consideration the constraints in time and resources thus a sample size of 100 was chosen.

3.10.3 Selection of sampling method

The sampling method used is the random sampling and quota sampling. Random sampling is a measure to selects respondent randomly from the entire pool. Quota sampling, it aims at representing the major characteristics of the population by a sampling of a proportional amount of each.

3.11 Analysis of data

The data collected has been analyzed using the SPSS version 7.0 software. Moreover, Microsoft Excel 2010 software was for the presentation of data, and drawing of charts.

3.12 limitations

There are a number of factors that influence consumers toward online shopping. However, this research tries to identify all the factors that influence the online shoppers. There has been many model and theories in this field of research.

3.13 Summary

Thus, for this study, both the primary data and secondary data were mostly used so as to be able to gather all the information as possible. In addition to that, questionnaire has been designed so as collect all the feedback of the respondent. However, along with questionnaire there was also an online survey that has been conducted. Some information was gathered by face to face interview also where friends and relative took part in it and by this we come through many information. Furthermore, the software SPSS along with excel have been used for this particular research.