Consumer Online Shopping Behavior: The Effect of Internet Marketing Environment, Product Characteristics, Familiarity and Confidence, and Promotional Offer

Authors: Norazah Mohd Suki, Norbayah Mohd Suki

Abstract:

Online shopping enables consumers to search for information and purchase products or services through direct interaction with online store. This study aims to examine the effect of Internet marketing environment, product characteristics, familiarity and confidence, and promotional offers on consumer online shopping behavior. 200 questionnaires were distributed to the respondents, who are students and staff at a public university in the Federal Territory of Labuan, Malaysia, following simple random sampling as a means of data collection. Multiple regression analysis was used as a statistical measure to determine the strength of the relationship between one dependent variable and a series of other independent variables. Results revealed that familiarity and confidence was found to greatly influence consumer online shopping behavior followed by promotional offers. A clear understanding of consumer online shopping behavior can help marketing managers predict the online shopping rate and evaluate the future growth of online commerce.

Keywords: Internet Marketing Environment, Product Characteristics, Multiple Regression Analysis, Malaysia.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1336100

References:

[1] A.N. Albarq, "Intention to Shop Online Among University Students in Jordan,” http://www.tesionline.com/intl/pdfpublicview.jsp?url=../__PDF/14778/14778p.pdf. Last accessed on 2012-4-12, 2006.
[2] N. Ahmad, A. Omar and T. Ramayah, "Consumer lifestyles and online shopping continuance intention,” Business Strategy Series, vol. 11, no.4, pp. 227-243, 2010.
[3] N. Delafrooz, L.H. Paim, S.A. Haron, S.M. Sidin and A. Khatibi, "Factors affecting students’ attitude toward online shopping,” African Journal of Business Management, vol. 3, no.5, pp. 200-209, 2009.
[4] C.L., Kwek, H.P. Tan and T.C. Lau, "Investigating the shopping orientations on online purchase intention in the e-commerce environment: A Malaysian study,” Journal of Internet Banking and Commerce, vol. 15, no.2, pp. 1-22, 2010.
[5] A. Haque, J. Sadeghzadeh and A. Khatibi, "Identifying potentially online sales in Malaysia: A study on customer relationships online shopping,” Journal of Applied Business Research, vol. 22, no.4, pp. 119-130, 2006.
[6] P., Sorce, V. Perotti and S. Widrick, "Attitude and age differences in online buying,” International Journal of Retail & Distribution Management, vol. 33, no.2, pp. 122-132, 2005.
[7] C.L., Kwek, T.C. Lau and H.P. Tan, "The effects of shopping orientations, online trust and prior online purchase experience toward customers’ online purchase intention,” International Business Research, vol. 3, no.3, pp. 63-76, 2010.
[8] P. Kotler and G. Armstrong, "Principles of Marketing,” (14th ed.), "United States: Pearson Prentice Hall, 2012.
[9] H.H. Kim and K. Jihyun, "The effect of offline brand trust and perceived internet confidence on online shopping intention in the integrated multi-channel context,” International Journal of Retail and Distribution Management, vol. 37, no.2 pp. 126-141, 2009.
[10] L.H., Kuo, C.C.L., Judy, Y.W., Xiang, P.L. Hsi and J.Y. Huei, "Antecedents and consequences of trust in online product recommendations: An empirical study in social shopping,” Online Information Review, vol. 34, no.6, pp. 935-953, 2010.
[11] J. Kim and S. Forsythe, "Factors affecting adoption of product virtualization technology for online consumer electronics shopping,” International Journal of Retail and Distribution Management, vol. 38, no.3, pp. 190-204, 2010.
[12] K., Maenpaa, S.H., Kale, H. Kuusela and N. Mesiranta, "Consumer perceptions of Internet banking in Finland: The moderating role of familiarity,” Journal of Retailing and Consumer Services, vol. 15, pp. 266-276, 2008.
[13] K.C., Man, C. Waiman and S.L. Vincent, "Literature derived reference models for the adoption of online shopping,” Information and Management, vol. 42, pp. 543-559, 2005.
[14] C., McDaniel, W.C. Lamb and F.J. Hair, "Introduction to Marketing (11th ed.),” Canada: International Edition, 2011.
[15] I.B. Odunlami and A. Ogunsiji, "Effect of sales promotion as a tool on organizational performance: A case study of sunshine plastic company,” Journal of Emerging Trends in Economics and Management Sciences, vol. 2, no.1, pp. 9-13, 2011.
[16] A. Haque, A. Khatibi and S.A. Mahmud, "Factors determinate customer shopping behavior through Internet: The Malaysian case,” Australian Journal of Basic and Applied Sciences, vol. 3, no.4, pp. 3452-3463, 2009.
[17] J.C. Nunnally, "Psychometric theory (2nd ed.),” New York: McGraw-Hill, 1978.
[18] J.B. Kim "An empirical study on consumer first purchase intention in online shopping: Integrating initial trust and TAM,” Electronic Commerce Research, vol. 12, no.1, pp. 125-150, 2012.
[19] J.A. Castañeda and F.J. Montoro, "The effect of Internet general privacy concern on customer behavior,” Electronic Commerce Research, vol. 7, no.2, pp. 117-141, 2007.
[20] G.G., Lim, J.Y., Kang, J.K. Lee and D.C. Lee, "Rule-based personalized comparison shopping including delivery cost,” Electronic Commerce Research and Applications, vol. 10, no.6, pp. 637-649, 2011.
[21] Narayanasamy, D. Rasiah and T.M. Tan, "The adoption and concerns of e-finance K., in Malaysia,” Electronic Commerce Research, vol. 11, no.4, pp. 383-400, 2011.
[22] N.M. Suki, "A Descriptive Investigation of Malaysian Internet Users’ Adoption of Online Shopping,” Journal of Information Technology & Multimedia, vol. 3, pp. 127-138, 2006.
[23] N.M. Suki and N.M. Suki, "Online buying innovativeness: Effects of perceived value, perceived risk and perceived enjoyment,” International Journal of Business & Society, vol. 8, no.2, pp. 81-93, 2007.
[24] R. Ramanathan, "An empirical analysis on the influence of risk on relationships between handling of product returns and customer loyalty in E-commerce,” International Journal of Production Economics, vol. 130, no.2, pp. 255-261, 2011.
[25] J.M. López-Bonilla and L.M. López-Bonilla, "Sensation seeking and e-shoppers,” Electronic Commerce Research, vol. 8, no.3, pp. 143-154, 2008.
[26] F. Ulbrich, T. Christensen and L. Stankus, "Gender-specific on-line shopping preferences,” Electronic Commerce Research, vol. 11, pp. 181-199, 2011.
[27] A.A. Ozok and J. Wei, "An empirical comparison of consumer usability preferences in online shopping using stationary and mobile devices: results from a college student population,” Electronic Commerce Research, vol. 10, no.2, pp. 113-137, 2010.