International Journal of Management and Applied Science, ISSN: 2394-7926
Volume-2, Issue-1,
Special Issue-1, Jan.-2016
CORRELATES OF CONSUMER ONLINE BUYING BEHAVIOUR
1
AHMED AUDU MAIYAKI, 2SANY SANURI MOHD MOKHTAR
1
PhD, Department of Business Administration & Entreprenuership, Bayero University Kano, Nigeria
2
PhD, Quality Management Institute, Universiti Utara Malaysia, 06010 Sintok
E-mail: [email protected]
Abstract—The increasing usage of internet provides a developing prospect for online retailers. The purpose of this research
is to ascertain the factors that influence consumer online buying behavior (online shopping intention). To this end, a survey
was conducted by administering questionnaires on respondents. In total, 200 students from University Utara Malaysia (UUM)
were chosen based on convenient sampling method. Descriptive statistics, reliability analysis, and multiple-regression were
employed to analyze the data collected. The results show that price and product variety have significant effect on consumers’
online shopping behavior and online shopping intention. Subsequently, it was recommended that retailers should adopt
appropriate pricing and product assortment strategies which are found to be the most important factors influencing online
buying behavior of consumers.
Keywords— Consumer Behaviour, Online Shopping, Shopping Intention, Price, Product Variety.
consumers also worry about receiving wrong product
during delivery. This often occurs when the orders
are filled manually and mistake was made in the
online retailer's warehouse. This will most likely
result to the loss of consumer.
Consumer buying behaviour is the process by which
individuals search for, select, purchase, use, and
dispose of goods and services, in order to satisfy their
needs and desire (Belch & Belch, 1998). Favourable
consumer buying behaviour leads to bonding between
the buyer and seller (Maiyaki & Mokhtar, 2011b).
The consumer buying process is a complex matter as
many internal and external factors could have an
impact on the buying decisions of the consumer. It is
presumed that for businesses to enhance online
purchase by customers, they have to identify the key
drivers of online purchase. Therefore, in this study,
we intend to investigate the key factors that influence
consumer online shopping and their buying behaviour.
It is presumed that six factors among others have
influences on consumer online buying behaviour. The
factors include convenience, price, security levels,
product variety, reliability and web design
I. INTRODUCTION
The invention of the internet has significantly
modified to a great extent the way consumers shop. A
large number of consumers change from tradition
shopping to the online shopping brought about by the
technological advancement. Hence, now consumers
are more likely to engage in online shopping because
they become active virtually and this enables them to
shop at any time for any product and anywhere
around the globe. Consequently, there is an
increasing usage of internet and easier paying
methods. In Malaysia, internet service providers like
P1 Wimax, Digi, Maxis and etc and the mobile
device have contributed to the expansion of online
shopping. With mobile devices like smart phones and
tablets, people can make online purchases anytime
and anywhere. Over 254,000 of Malaysian online
shoppers use their mobile devices for shopping.
Hence the Malaysian e-commerce industry is growing
and has a great potential for growth. Malaysian spent
RM 1.8 billion through online shopping in the year
2010 and the market size is estimated to grow to RM
5 billion in 2015 (The Star online, 2012). According
to the same source, the three top categories of
products or service that mostly attract the patronage
of Malaysians are travel (RM 435 million), bill
payments (RM 329 million), and entertainment and
lifestyle (RM 255 million). However, the amount of
online shopping revenue in Malaysia is RM1.8 billion.
This amount was found to be less than the amount
obtainable in other countries of Asia Pacific, such as
Singapore, RM21.19 billion in year 2010 (The Star
online, 2012). This means that Malaysians are not
active in online shopping compare to other countries
in the region. This is because Malaysians are
concerned about the security of the online shopping.
For example 69% of users consider online credit card
fraud a major concern and 85% of users are
concerned about being a victim of identity theft
(Ipsos-Insight, January 2004). Besides, some of the
Based on the above, the focus of this paper is to
investigate the extent to which some selected factors
affect consumer online buying behaviour. Findings of
this research are expected to be useful in broadening
the understanding regarding consumer buying
behaviour. Additionally, by understanding the
reasons why consumers buy or not buy online, online
stores would be able to incorporate suitable
marketing strategies, moderate consumers’ concerns
and convince customers to transfer from offline to
online shopping (Teo, 2006).
II. LITERATURE REVIEW
Several researchers have carried out studies in the
effort to assess consumers’ online buying behaviour
(Saprikis et. al., 2010). These include those
Correlates of Consumer Online Buying Behaviour
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International Journal of Management and Applied Science, ISSN: 2394-7926
addressing the factors that have significant effect on
online shopping (Shergill & Chen, 2005; Jarvenpaa &
Todd, 1997; Shah Alam et. al., 2008). Ernst and
Young (2000) reported that internet users purchase
online because of good product selection, competitive
prices, and ease of use. Similarly, popular literature
cited ease of shopping comparison, low prices, timely
delivery, convenience, time saving, low shipping
costs, improved customer service, tax exemption
status and speedy e-mail response, as key reasons for
the increase in online shopping (Lorek, 2010).
Volume-2, Issue-1,
Special Issue-1, Jan.-2016
credit card number, e-mail address and other privacy
information. Know and Lee (2003) states that the
security for online transactions is a major concern for
customers and it determine their online purchase. In
other words the higher the perceived level of security
the higher will be the tendency for customer to
engage in online shopping. Security trust has received
the most consistent support as a factor that influence
online buying (Jarvenpaa et al., 1997; Koufaris &
Hampton-Sosa, 2002). To this end we propose that
security level is related with consumers’ online
shopping behaviour.
H3: There is a significant relationship between
Security Level and online shopping behaviour
The relationships between the factors and consumer’s
online buying behaviour have been found to be
positive in a number of studies which include
Delafrooz et al., (2010), Saprikis et al. (2010),
Shergill and Chen (2005) and Shah Alam et al.
(2008). The key factors that will be investigated are
convenience, price, security levels, product variety,
reliability and web design. Convenience is anything
that saves consumer’s resources like time or energy.
In the study of Saprikis et al. (2010), authors refer to
convenience as time saving and having more time to
evaluate and select the products. Additionally,
Karayanni (2003) states that convenience means that
online shoppers tend to value avoidance of queues,
availability of shopping on a 24-hour basis and time
efficiency.
Product variety is the quantity of different product
types provided by online retailer. Saprikis et al.
(2010) state that online retail shops have more
options compared to brick-and-mortar stores and thus,
the former attracts more customers than the latter. It
means with if the types of product that the online
retailer provided is various than the traditional
shopping, consumers will switch to online shopping.
Hence, we hereby propose that product variety is
related with consumers’ online shopping behaviour
(online shopping intention).
H4: There is a significant relationship between
Product Variety and online shopping behaviour
According to Nielsen (2007), more than 627 million
people in the world have shopped online. Forrester
(2006) research estimates e-commerce market
reached $228 billion in 2007, $258 billion in 2008
and $288 billion in 2009. The convenience and ease
of online shopping encourage consumers to engage in
online shopping. Hence, we propose that convenience
is related with consumers’ online shopping behaviour.
H1: There is a significant relationship between
Convenience and online shopping behaviour
Reliability is the extent to which a consumer trusts
the online retailers in their services. These include
delivering the correct products/service after received
payments from customers. The specifics of reliability
include such things as accuracy in billing, keeping
records correctly and delivering service at the
designated time (Maiyaki, 2012).Vijayasarathy (2002)
states that reliability is closely associated with risk
since it is a measure of customers’ perceptions of
whether or not merchants can be counted on to
deliver on their promises. According to Jun et al.
(2004) online consumers apparently want to receive
the right quality and right quantity of items that they
have ordered within the time frame, promised by the
retailers, and they expect to be billed accurately.
Accordingly, to be considered as a reliable online
service provider, an organization must deliver the
promised services within the promised time frame
(van Riel et al., 2003). The aforementioned show that
reliability is a factor which consumers consider in
online shopping. Thus, we propose that reliability is
related with consumers’ online shopping behaviour.
H5: There is a significant relationship between
Reliability and online shopping behaviour
Price is the amount or counter value pay by consumer
in exchange for a product or service. In the study of
Saprikis et al. (2010), it was found that price have a
significant influence on consumer online shopping.
The findings of the study imply that a price is a factor
in enhancing online shopping. The result is consistent
with the findings of Ghani et al. (2001) which equally
discovered that price positively influence online
purchase behavior. Price is always an important issue
for a consumer to decide whether to purchase a
product or not. Similarly, Price strategy studies argue
that price level and quality are important dimensions
of competitive strategies in retailing (Morschett et al.,
2006). Consequently, we propose that price is related
with online shopping behaviour of consumers.
H2: There is a significant and positive relationship
between price and online shopping behaviour
Website design is the extent to which a service
provider’s website is carefully developed and
designed to enable easy access and navigation by
customers. Kim and Lee (2002) states that the web
Security level is consumer’s perception of how online
retailers deal with their personal information such as
Correlates of Consumer Online Buying Behaviour
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International Journal of Management and Applied Science, ISSN: 2394-7926
site design describes the appeal of the user interface
design presented to customer. According to Turban
and Ghehrke (2000) elegant design of web site will
attract the intended audiences than a poorly designed
site. In this way, it is presumed that customers are
willing to visit more often and stay longer with
attractive web sites. Furthermore, Shergill and Chen,
Volume-2, Issue-1,
Special Issue-1, Jan.-2016
(2005) identified web site design characteristics as
the dominant factor which influences consumer
perceptions of online purchasing. Hence, it can be
proposed that web design is related with consumers’
online shopping behaviour.
H6: There is a significant relationship between
web site design and online shopping behaviour
Figure 1. HYPOTHESIZED CONCEPTUAL MODEL
questionnaire were adapted from previous studies.
However, the reliability and specifically the internal
consistency of the items were confirmed. In the table
bellow, various concepts and their indicators are
shown.
Scale Construction
Previous research developed items and measures for
the factors involved in this study. These scales
measures are operationalized with formative
indicators. Basically, all the items in the
Table 1: ITEM SCALE
Correlates of Consumer Online Buying Behaviour
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International Journal of Management and Applied Science, ISSN: 2394-7926
III. METHODOLOGY
Volume-2, Issue-1,
Special Issue-1, Jan.-2016
Table 3: RESULTS OF DESCRIPTIVE
STATISTICS
Given that this research involved assessing the
perception of respondents with regards to certain
variables, survey and hypothesis designs are adopted.
Relevant information was collected from 200 students
of the Universiti Utara Malaysia (UUM). The
students consist of both post-graduate and
undergraduate which were sampled from all the three
colleges in the University. A structured closed-ended
questionnaire was used as the instrument for data
collection. The questionnaire was adapted from
relevant past studies such as Park & Kim, 2003;
Shergill & Chen , 2005; Saprikis et. al, 2010.
Additionally, all the 7 variables involved in the
research were measured using a five-point Likert
scale that ranges from “strongly disagree” (1) to
“strongly agree” (5). As for the analysis, Statistical
Package for Social Science (SPSS) was employed to
run for the descriptive and inferential statistics.
IV. RESULTS
Reliability Test
Before proceeding to the main analysis, Cronbach’s
alpha reliability test was run. Cronbach’s reliability
coefficient indicates the internal consistency and how
well the items under each variable hang together to
measure that very variable (Maiyaki & Mokhtar,
2011a). The closer the Cronbach’s alpha to 1 implies
higher internal consistency and thus, more reliable. It
is generally agreed that the value of Cronbach’s alpha
must be 0.7 or more to be acceptable; however, lower
coefficients may be acceptable (Hair, Money,
Samouel, & Page, 2007). The result of the reliability
coefficients ranged from 0.759 to 0.823 and thus, all
the factors are reliable as can be seen from the table
below.
From the above demographic profile, male
respondents constituted 99 (49.5%) while female
respondents constituted 101 (50.5%). Majority of the
respondents were between the age range of 21 to 22
and thus, representing 73%. Most of the respondents
were Chinese 147 (73.5%) and for religion Buddhist
score the highest frequency of 127 which is
equivalent to 63.5%. With regards to marital status
respondents that are single constituted 99.5%.
Multiple Regression Analysis
A multiple regression was run in order to the test the
linear relationship between the predictors and
explanatory variables of the study. Hence,
convenience, price, security, product variety,
reliability and design were regressed against online
intention. The model summary, ANOVA and
coefficient tables are presented below:
Table 2: RESULTS FOR RELIABILITY TEST
Descriptive Statistics
The demographic variables analyzed in this study
include gender, age, race, religion, and marital status
as in the table below.
Correlates of Consumer Online Buying Behaviour
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International Journal of Management and Applied Science, ISSN: 2394-7926
From table 1 it could be seen that the independent
variables are able to jointly explain 43.0% variance in
online shopping behaviour. This figure is quite
sufficient to indicate the robustness of a model in
social research. Thus, the whole model is significant
as indicated in Table 2 with p < .001. Further analysis
shows that only price and product variety have
significant relationship with online shopping
behaviour both with p-value < .001. On the other
hand, each of convenience, security, reliability and
web design has no significant association with online
shopping behaviour. Based on the above, the research
hypotheses were statistically tested as follows:
Volume-2, Issue-1,
Special Issue-1, Jan.-2016
variety are among the key factors that directly affect
online shopping behaviour of consumers. The
findings further suggest that the influence of product
variety on the online shopping behaviour is stronger
than that of price.
The result is consistent with the findings of Ghani et
al. (2001) that has identified price positively
influencing online purchase intention and behaviour.
The price of the product significantly determines the
customers’ behaviour with regard to online shopping.
As for the product variety, the positive association
implies that when there is large amount of product
variety, consumers tend more towards online
shopping. This further suggests that when the benefit
of product variety such as: wider product range and
product information are available, customers are will
be more inclined towards online shopping rather than
traditional shopping.
Table 4: TEST OF HYPOTHESES
On the other hand, convenience, security level,
reliability and web design were found to have no any
significant relationship with online shopping
intention. This means these factors are no any
significant influence on consumers’ online shopping
behaviour (online shopping intention). The findings
of this studies is not consistent with those of
Ranganthan and Ganapathy (2002), Kim and Lee
(2002) and Than and Grandon’s (2002). The
divergence of the findings could be accounted for by
the differences of the contexts of the various studies.
Furthermore, customers might prefer traditional
shopping because it provides opportunity for social
relationships unlike online transaction which leads to
social isolation. Other consumers regard traditional
shopping as leisure.
V. DISCUSSION
VI. MANAGERIAL IMPLICATIONS
In this research, we set out to determine whether the
selected factors have significant influence on
consumers’ online shopping behaviour. The results
from this study provide partial support to the
proposed research framework. Among the hypotheses
proposed, two were supported. The study established
that each of price and product variety has a
significant positive relationship with online shopping
behaviour. This means that the price and product
The results of this study provide several important
implications for online-pricing practice. The results
indicated that online retailer should adopt appropriate
pricing strategy for online products as this has a
significant positive impact on online shopping
behaviour. Therefore, online retailers should measure
the customers’ perceptions with respect to price
dimensions in their pricing strategies. For instance,
Correlates of Consumer Online Buying Behaviour
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International Journal of Management and Applied Science, ISSN: 2394-7926
the retailers can offer a lower price to customer via
online store to maintain customer loyalty.
Furthermore, the price level that is perceived as lower
compared to the other online store will also lead to a
competitive advantage. Similarly, online retailers
should also expand their product assortment as it has
a significant effect on consumer’s behaviour towards
online buying behaviour. Hence, online retailers also
need to provide sufficient product variety on their
store because it can attract customers to stay on the
online store longer.
Volume-2, Issue-1,
Special Issue-1, Jan.-2016
EFERENCES
[1]
[2]
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Given that this research could not establish
significant relationships between convenience,
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online shopping behaviour on the other, online
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VII. LIMITATION
As with other studies, there are shortcomings that
could not be avoided in this research. This survey
employed convenience sampling due to the fact that
the sampling frame of the respondents was not
available to the respondents at the time of conducting
the research. To this extent therefore, there is a
difficulty in generalising the findings. Furthermore,
the sample size of the respondents is not large enough.
A marketing survey of this sort should employ a
larger sample size that is representative of the
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CONCLUSION
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This study aimed at investigating the key factors
influencing consumers’ online buying behaviour.
Consequently, the research shows that there is a
significant and positive relationship association
between price and product variety, and online
shopping behaviour. This means the price and the
product variety in online shopping directly affect
consumers’ buying intention and behaviour. So, if the
price for a product in online shopping are lower, and
the product variety is more than traditional shopping,
the consumers will choose to purchase online. On the
other hand, there is no significant relationship
between convenience, security level, reliability, web
design and online shopping behaviour. This shows
these factors are less influence and will not directly
affect consumer buying behaviour in online shopping.
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