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A research about buying behaviors of online customers A research about buying behaviors of online customers A research about buying behaviors of online customers A research about buying behaviors of online customers A research about buying behaviors of online customers A research about buying behaviors of online customers A research about buying behaviors of online customers A research about buying behaviors of online customers
A RESEARCH ABOUT BUYING BEHAVIOURS OF ONLINE CUSTOMERS Comparison of Turkey with UK By Student A dissertation submitted for The Masters in MSc International Management The Business School University of Roehampton 2011 DECLARATION FORM The work I have submitted is my own effort I certify that all the material in this Dissertation, which is not my own work, has been identified and acknowledged No materials are included for which a degree has been previously conferred upon me SEDA YOLDAS 07/09/2012 The Abstract The aim of this study is to investigate the factors that affect online purchasing behaviour of two consumer groups from two different countries, United Kingdom and Turkey There are millions of people online any time and they all are a potential consumer in the online market Since there are so many providers, the most important thing for organisations is to understand what are consumer wants and needs in this competitive business environment Customer behaviours are influenced by different factors such as culture, social class, references group relation, family, salary level and salary independency, age, gender etc and so they show different customer behaviours These differences are seen more specific when it is considered between two different consumer groups from different countries A questionnaire was designed online, since the research was an online consumer behaviour study, online data collection methods were preferred The link of the questionnaire has been sent online between July 30 and August 13, 2012 176 were responded and within the responded questionnaires 170 were usable for analysis (six incomplete responses have been eliminated) The sample consisted of individuals Turkey and UK The result of this study would contribute marketers who want to penetrate the market in Turkey and in United Kingdom who is already present in the market and wants to maintain the loyalty of their customers It can also be a part of the study on international consumer behaviour toward online shopping Key Words: Online Shopping, Online Shopping Behaviour,e-Commerce Table of Contents Acknowledgements CHAPTER INTRODUCTION 1.1 Background Research 1.2 Problem Statement 1.3 Research questions 1.4 The aim and the purpose CHAPTER LITERATURE REVIEW 2.1 THE INTERNET 2.2 THE CONCEPT OF E-COMMERCE 2.2.1 Categories of E-commerce 2.2.2 History of E-commerce 2.2.3 Social commerce 2.2.4 Smartphones, Tablet Computers (mCommerce) 2.3 Online Group Buying 2.4 Online shopping 2.5 Online Consumers 2.6 Online Shopping and Consumer Behaviour 2.7 Factors that affecting Consumer Behaviours, Consumer Characteristics in the Online Medium 2 6 10 10 11 12 12 13 16 17 2.7.a Personal Characteristics 2.7.b Psychological Characteristics 2.7.c Social Characteristics 2.7.d Cultural Charecteristics 2.8 Country Culture 2.9 Customer Loyalty 2.10 Trust 2.11 Cross-border online shopping 2.12 Disadvantages CHAPTER RESEARCH METHODOLOGY 3.1 Research Approach and Research Philosophy 3.2 Data Collection 3.3 Primary Data Sampling strategy Methods of spreading the questionnaires 17 19 20 20 20 22 23 23 24 25 25 26 26 26 27 Components of the questionnaire 3.1.2 Secondary Data 3.1.3 Reliability of result and evaluation Data Analysis Approach CHAPTER RESEARCH FINDINGS & DATA ANALYSIS Internet usage Respondents’ attitudes towards online shopping Conclusion References Appendices 28 28 28 29 30 34 40 54 55 64 A research about buying behaviours of online customers YOL11332553 Acknowledgements First of all I would like to thank to my supervisor, Dr Steven Howlett, for his extreme support and motivation I would like to express my sincere thanks to all of my family members and friends both from Turkey and The United Kingdom for their support and patience during the preparation of this study I am very lucky to have such a great family and friends A research about buying behaviours of online customers YOL11332553 CHAPTER INTRODUCTION This introduction section covers the background research, the problem statement and the aim and the purpose of the research 1.1 Background Research Nowadays, the Internet is being widely used in daily life The existence of the Internet brought many advantages to individuals’ daily lives With the help of the medium, people can communicate, learn, entertain, buy products and get services Of course the disadvantages of it have long been discussed; as the virus threat, the risk of personal information theft, spamming etc However since the advantages outweigh the drawbacks, most of the people cannot resist bringing it to the centre of their lives Since the beginning of the Internet, individiuals have shown interest to the Internet According to Internet World Stats' statistics (2012) today more than two billion people linked to the Internet This number shows that 30 percent of the world population use the Internet Consequently, the Internet can be used for the competitive advantage by organisations and actually it is a powerful source to use (Hamill, 1997; 300) The Internet have been using for several different purposes Besides that, it has also brought a different dimension to commercial activities The Internet has created a new market for both customers and organisations, and has been an alternative market to the traditional market Web sites provide a chance to search information about products/services, place a comment or give orders (Hoffman and Novak, 1996; 51) Therefore, the previous experiences of marketing has turned into a different segment Now organisations are taking consider to provide different payment methods, different shipping alternatives and even different web interfaces for different geographics A research about buying behaviours of online customers YOL11332553 Today, with the rise of the technology, significant portion of commercial activities take place over the Internet Since commercial activities' main goal is to sale, sale can be realised by the purchase of a different party, as we know customers Therefore, for electronic commercial activities, it is important to analyse online customers' behaviour Furthermore, in order to develop and apply effective marketing strategies the factors that affect consumer behaviours should be investigated Online retailers can better understand customer needs and wants by directly analysing the interaction between a customer and the online shop Analysing consumer behaviour is not a new phenomenon for scholars Philip Cotler, marketing expert, have studied on this topic Theories about consumer behaviour have been used to develop an effective marketing strategy Moreover, it is impossible to think marketing without the Internet in today's world Online marketing is the topic that have been researched and made applications many times by researcher from past to nowadays Studies on online shopping investigated the factors that influence online shopping as well as motives for, value of and antecedents of online buying behaviour As a result, the academic researchers and the business world started to focus on the consumer side of the online purchasing behaviour and a lot of researches and articles were prepared to make guidance for the development of online shopping 1.2 Problem Statement There are millions of people online any time and they all are a potential consumer in the online market Since there are so many providers, the most important thing for organisations is to understand what are consumer wants and needs in this competitive business environment In the Internet shopping market since there is no face-to-face contact, analysing and identifying factors that influence the consumer is vital Moreover, consumers have new demands in the Internet medium Therefore, it becomes more important to answer consumer's demands to retain the customer A research about buying behaviours of online customers YOL11332553 Being aware that customers are performing a major role in marketing, finding out how the factors that are essentially affecting the purchasing intentions are important Analysing the process of shopping activities, how consumer decide and make purchasing over the Internet and what they buy need to be identified by online providers in order to satisfy and succeed in the competitive business environment Customer behaviours are influenced by different factors such as culture, social class, references group relation, family, salary level and salary independency, age, gender etc and so they show different customer behaviours These differences are seen more specific when it is considered between two different consumer groups from different countries Previous research streams on online shopping behaviour, investigated main factors influencing online shopping adoption However there has been limited number of studies on comparison two different countries In this study, research has been made comparative online buying behaviours of consumers that are located two different countries which are United Kingdom and Turkey and studied on the findings of the research 1.3 Research questions To fulfill the aim and the purpose of the study, the research question has been formulated by relying on the background and the problem statement as following: If and how demographic, personal value, social recognition and the culture influence individuals to purchase online and what are the differences and similarities between two different countries regarding online shopping? A research about buying behaviours of online customers 1.4 YOL11332553 The aim and the purpose The aim of this study is to investigate the factors that affect online purchasing behaviour of two consumer groups from two different countries, United Kingdom and Turkey Moreover, it is also wanted to identify and analyse online buying habits of consumers in these countries The survey method have used between UK and Turkey in order to find out the differences of the online buying behavior In the questionnaire, we search if the preferences of consumers have been different or not and we try to demonstrate whether the consumers have differences or similarities The result of this study would contribute marketers who want to penetrate the market in Turkey and in United Kingdom who is already present in the market and wants to maintain the loyalty of their customers It can also be a part of the study on international consumer behaviour toward online shopping The next chapter provides the conceptual framework for the study It covers a review of electronic commerce, online shopping and online shopping behavior literature and its dimensions, along with the discussions of habits Chapter Three focuses on the research design and method; research objectives, variables of the study, the research instrument, sampling, and data collection are discussed in this chapter Findings regarding the differences in online shopping behavior and consumption value between Turkey and The United Kingdom, as well as the findings on differences in online shopping behaviour are presented in Chapter Four Chapter Five concludes with a discussion of findings, the contribution and limitations of the study along with implications for future research and business practices A research about buying behaviours of online customers YOL11332553 CHAPTER LITERATURE REVIEW This section starts with the literature review with the concept of the Internet and electronic commerce and continue with online shopping term which means that many online shopping features will be analysed Moreover, theories behind consumer behaviour are also presented regarding identification of the influencing factors 2.1 THE INTERNET 20th century has been an era that, social, economic and political changes have occured Along with the globalism, dissapear of the borders, technologic developments and unavoidable passing to the information society has deeply affected and changed the current rules of the business world Especially, in the last parts of the 20th century with rapid changes in the information technologies, computers have become an integral part of the life With the developments in the information and communication technologies over these years, computers’ capacities have grown rapidly and local networks have become a network that connects all the computers in the world, the Internet In the information era, the Internet has become more and more necessary Nowadays computer and the Internet have been indispensable tools for our daily life in conjunction with the rapid development of knowledge and technology With the rise of this new technology ‘Internet’ individuals have started searching everything they want from this medium Moreover it is a commonplace of information gathering Those technologies loom large in our social life and business life as well A research about buying behaviours of online customers YOL11332553 REFERENCES Amazon (2012), 'Overview', [online] Available at: http://phx.corporateir.net/phoenix.zhtml?c=176060&p=irol-mediaKit [accessed on 10 August 2012] Bloomberg (2012), 'Groupon China Venture to merge with tencent-backed ftuan', [online] Available at: http://www.bloomberg.com/news/2012-06-26/groupon-china-venture-to-merge-with-tencentbacked-ftuan.html [accessed on August 2012] Booz & Company (2011), 'Turning like to buy social media emerges as a commerce channel', [online] Available at: http://boletines.prisadigital.com/Like_to_Buy.pdf [accessed on August 2012] Cao, M., Zhang, Q., Seydel, J (2005), 'B2C e-commerce web site quality: an empirical examination', Industrial Management & Data Systems, Vol.105(5), pp.645-661 Chang, M., K., Cheung, W., Lai, V., S (2005), 'Literature derived reference models for the adoption of online shopping', Information&Management, Vol.42(4), pp.543-559 Chau, P.,Y.,K., Cole, M., Massey, A.,P., Montoya-Weiss, M., O'Keefe, R.,M (2002), Cultural differences in the online behavior of consumers, Communications of the ACM, Vol.45(10), pp 138143 Deaton, A., Muellbauer, J (1980), Economics and Consumer Behaviour, Cambridge: Cambridge University Press 55 A research about buying behaviours of online customers YOL11332553 East, R., Vanhuele, M., Wright, M (2008), Consumer Behaviour, Applications in Marketing, London: Sage Publications eBay (2012), [online] Available at: http://www.ebayinc.com/history [accessed on 10 August 2012] eBay (2012), [online] Available at: http://www.ebayinc.com/content/press_release/20070503005231 [accessed on 10 August 2012] E-commerce Facts (2012), 'Eurostat: 43 percent of Europeans make purchases online', [online] Available at: http://www.e-commercefacts.com/research/2012/05/eurostat-eu-online-shoppi/ [accessed on 10 August 2012] Erdogmus, I., E., Cıcek, M (2011), 'Online group buying; 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UK Turkey What is your gender? Female Male How old are you? Under 21 21-30 31-40 41-50 51 and over Which of the following best describes your current occupation? Student or/and Not working Student or/and Part-time working Full-time working Self-employed Retired Professional Unemployed Other: What is your educational level? High School Degree Associate degree 64 A research about buying behaviours of online customers Bachelor's Degree Master's Degree PhD's Degree YOL11332553 Please indicate your monthly income range (Amounts specified in each option are shown both in British Pounds and Turkish Liras respectively) Less than £500,00 or less than 1000,00 TL £500,00 - £999,99 or 1000,00 TL - 1999,99 TL £1000,00 - £1499,99 or 2000,00 TL - 2999,99 TL £1500,00 - £2499,99 or 3000,00 TL - 3999,99 TL £2500,00 or more or 4000,00 TL or more Do you have a credit/debit card? Yes No For what purpose you use the internet more? (Tick the three most popular options) Research, Homework, Study Communication, Social websites (E-mailing, Facebook, Twitter, etc.) Game Shopping Information Watching programmes For business purposes Other: Which product groups you buy most over the internet? (You may tick more than one) CD, DVD, Music, Computer games Computer products, software Clothing, Accessories Food, Drink Perfume, Cosmetics Holiday Electronic goods Household goods, furniture Theatre, cinema ticket 65 A research about buying behaviours of online customers Travel ticket Books Other: YOL11332553 10 In the last six months, how much did you spend on a product or service? (Amounts specified in each option are shown both in British Pounds and Turkish Liras respectively) Less than £50,00 or less than 100,00 TL £50,00 - £99,99 or 100,00 TL - 299,99 TL £100 - £299,99 or 300,00 - 499,99 TL £300 - £499,99 or 500,00 TL - 999,99 TL £500 or more or 1000 TL or more 11 Do you go to the store to see the product before purchasing online? Yes No In some cases (go to question 12) 12 If you had put 'in some cases' to previous question, please specify in which occasions 13 How you reach shopping websites? With the recommendation of a friend With advertisements in the press and the media With the search engines With links (e-mails) With following the computer magazines Other: 14 In the following statements, please rank which one applies to you (with being the lowest and being the highest) Not at all The opinions and experiences of my family affect my purchase decision 66 Very much A research about buying behaviours of online customers Not at all YOL11332553 Very much The opinions and experiences of my friends affect my purchase decision The opinions and experiences discussed in online forums affect my purchase decision 15 Do you have memberships in group buying websites, such as Groupon? Yes No 16 If you have how often you visit those sites for special offers and exclusive deals ? Never Once a week Couple times in a week once a day 17 Have you bought any goods or services online from any of the following? (Web-based companies or online shopping channels of companies) Yes No Don't know Companies based in the country you live in Companies based in European countries Companies based in countries outside Europe 18 In general, how confident would you say you are with buying goods or services online from each of the following? Very confident Fairly confident Not very confident Not at all confident Don't know Companies based in the country you live in Companies based in European countries Companies based in countries outside Europe 19.Please indicate your level of agreement with the following statements about shopping over the internet Strongly agree Agree Online shopping is not safe 67 Neutral Disagree Strongly disagree A research about buying behaviours of online customers Strongly agree Agree It is a risk for me not to see the product in real It is a risk for me to give identifying and credit card information The product may come different from the website Delivery of the product might not ever Delivery time is longer than that realisable I don’t have enough information about purchasing over the internet I love shopping in store more I prefer going shopping with someone rather than alone I don’t have enough access to the internet I not need to buy over the internet Delivery fees are high I don’t want to wait for the product Shopping on the internet save time There is an option to have access to more products Products on the internet is cheaper than in store There have access to more information about products Product options can be compared more easily Online shopping is safe 20 Do you consider shopping online in the next 12 months? Yes No Not sure 68 YOL11332553 Neutral Disagree Strongly disagree A research about buying behaviours of online customers YOL11332553 21 Please specify how the following features of the website influence your attitude A lot Quite a lot Can not tell if it affects or not Not very much Not at all Functional design Visual and auditory content Communication with the company Communication with other users Links to other websites Products and services sold Website security (Financial security) Thank you for filling out this questionnaire Please not forget to click 'Submit' button to record your participation 69 ... Components of the questionnaire 3.1.2 Secondary Data 3.1.3 Reliability of result and evaluation Data Analysis Approach CHAPTER RESEARCH FINDINGS & DATA ANALYSIS Internet usage Respondents’ attitudes... et al stated that (2003;150) traditional shopping mostly have been chosen by older individuals (40 years old and above) Researches about young 17 A research about buying behaviours of online customers. .. these factors 3.1 Research Approach and Research Philosophy To start a research, there must be an understanding of in which way the research wil be approached Philosophies and approaches are the