Engaging of companies in e-commerce to expand their retail channels Essay

1.1 Introduction

As the universe of the cyberspace quickly grows, and online engineerings improve drastically, more companies are prosecuting in e-commerce to spread out their retail channels, and attain better range to possible clients. Based on the old literature, supplying multi-channel shopping capableness will let retail merchants to aim a wider client base and better their competitory advantage in the market, therefore increasing their potency for success ( Dickson, 2000 ; Khakimdjanova & A ; Park, 2005 ; and Nitse, Parker, Krumwiede & A ; Ottaway, 2004 ) . However, despite the obvious advantages of e-commerce, and the fact that the Internet affords great chances to concerns and is the fastest turning retail channel, it still is non the most common method for shopping used by consumers ( Brashear, Kashyap, Musante, & A ; Donthu, 2009 ) .

This chapter explores the theoretical model of this survey, explicating the intent of the research and the theoretical account used by the research worker to analyse the topic standby. The chapter includes a preliminary account of the deductive theoretical account proposed by the research worker, the variables used, and their relationships, in add-on to the preparation of the major and minor inquiries into hypotheses, the informations aggregation instrument employed and the methodological analysis of informations analysis.

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From the research worker ‘s literature reappraisal it is evident that there are factors that clearly affect consumer online shopping penchant. The reappraisal of literature clearly classifies influential factors of retail channel penchant into Functional and Hedonic perceived value – related factors ( Babin & A ; Attaway, 2000. The research worker aims to find which of the factors suggested to hold an consequence on Functional value perceived by consumers, viz. Ease of Use, Usefulness ( Childers, Carr, Peck & A ; Carson, 2001 ) , Convenience, Informativeness ( Bagdoniene & A ; Zemblyte, 2009 ) , Wider Selection, Cost Reduction ( Delafrooz, Paim & A ; Khatibi, 2009 ) and Perceived Control ( Koufaris, 2002 ) , are most influential on online shopping penchant in Egypt. Similarly, the research worker will try to detect which of the factors suggested to hold an consequence on Hedonic value perceived by consumers, viz. Adventure Shopping, Social Shopping, Gratification Shopping, Idea Shopping, Role Shopping and Value Shopping ( Kim, 2006 ) , are most influential on online shopping penchant in Egypt.

The literature farther provinces that factors such as merchandise type ( Girard, Korgaonkar, & A ; Silverblatt, 2003 ) , retailer repute ( Lee & A ; Turban, 2001 ; and Wright, 1975 ) and payment method ( Cases, 2002 ; and Forsythe & A ; Shi, 2003 ) are most seemingly associated with the different Purposes to shop online exhibited by consumers.

From the reappraisal it is besides apparent that in Egypt, the e-commerce concern has a batch of possible but is still yet under achieved. This survey will try to supply Egyptian retail merchants with informations that will assist them recognize their full potency and function a larger market.

Through efforts to portrait the multi channel shopping wonts of the Egyptian consumers, the research worker aims to bring out more appropriate manners by which retail merchants can optimise their concern public presentation and achieve most success.

1.2 PROBLEM DEFINITION

It is apparent from the old reappraisal of literature that the planetary widespread usage of the cyberspace as a agency of commercialism is evident across many industries. However, Retailers are still diffident of the factors that motivate/ influence clients to exchange from the traditional retail channel ( Physical shops ) to the on-line channel ( Online shops ) .

This research attempts to research and corroborate from pervious researches, and place the cardinal factors that impact the pick of consumers for online shopping as the preferable channel of purchase in Egypt. The research worker will seek to detect the chairing consequence of different merchandise categories ( Search, Experience and Credence ) , trust in retail merchants ( International & A ; local retail merchants ) and payment methods ( Cash on Delivery & A ; Credit Card Payment ) on the relationship between Online Shopping Preference and Online Purchase Intention

As a decision, the research worker intends to develop a general portrayal of the multi/cross shopping wonts of the Egyptian consumers, with the purpose of supplying retail merchants with information that might enable them to capitalise on their chances and highlight the factors that might be cardinal to their success in the e-business universe.

1.3 RESEARCH OBJECTIVE

The intent of this quantitative survey will be to mensurate the influence of the different incentives of hedonistic and useful values of the on-line shopping experience as perceived by consumers. The survey will besides mensurate consumers ‘ penchant for the online shopping channel, every bit good as the consequence of merchandise category, trust in retail merchants, and payment methods on purpose to buy via the cyberspace.

The research worker will try to show the relationship between the influential factors and Online Shopping Preference, and that between Online Shopping Preference and Online Purchase Intention, as moderated by Product Types, Retailer Trust and Payment Methods. As a conclusive result to the survey, the research worker will try to portrait the multi-channel shopping categorization of the Egyptian consumer. It is assumed that this apprehension will let retail merchants to capitalise on chances and to recognize the factors that need to be focused on in order to win in the Egyptian market.

1.4 THEORETICAL FRAMEWORK

The theoretical account used in this research has been developed as an altered combination of theoretical accounts antecedently tested in the literature by research workers Sahney, Shrivastava, & A ; Bhimalingam ( 2008 ) ; Koufaris ( 2002 ) ; Childers, Carr, Peck, & A ; Carson ( 2001 ) ; Kim ( 2006 ) , Chen & A ; Lee ( 2008 ) and Zhang ( 2006 ) . The theoretical account attempts to place the most influential factors of the hedonic and functional value of the shopping experience as perceived by consumers on consumers ‘ pick of the cyberspace as their preferable retail channel.

It is besides utilised to propose the relationship between consumer penchant to online shopping and their purpose to buy organize the cyberspace. Furthermore, the theoretical account is aimed to bring out the consequence of different merchandise categories, perceived trust in retail merchants on consumers ‘ purpose to buy from the cyberspace.

1.4.1 Research Variables

This research examines the relationships among the undermentioned dependant, independent and moderating variables:

1.4.1.1 Dependent Variables

* DV 1: Online Shoping Preference ( OSP )

In the really basic sense, Preference is defined as the pick of something over another ( www.thefreedictionary.com ) . Online Shoping penchant in this survey refers to pick of consumers to the online shopping method as their preferable retail channel ( versus shopping from traditional physical shops )

It is suggested that Online Shopping Preference ( OSP ) will be positively influenced by the factors perceived by consumers as online shopping functional values: Ease of usage ( EU ) , Convenience ( CO ) , Informativeness ( IN ) , Wider choice ( WS ) , Cost Reduction ( CR ) , Perceived Control ( Personal computer ) and Usefulness ( US ) ; every bit good as factors considered as on-line shopping perceived hedonistic values: Adventure ( AD ) , Social ( SO ) , Gratification ( GR ) , Idea ( ID ) , Role ( RO ) and Value ( VA ) shopping.

It is besides suggested that the relationship between Online Shopping Preference ( OSP ) and Online Shopping Intention ( OPI ) will be moderated by Product Type ( PT ) ; Retailer Type ( RT ) ; and Payment Method ( PM ) .

* DV2: On-line Purchase Intention ( OPI )

In its most crude significance, Purchase purpose is as a program to buy a certain good or service in the hereafter ( www.budinessdictionary.com ) . It is of peculiar involvement to sellers as they are continuously trying to set up a purchase purpose in the heads of consumers for the merchandises their companies are offering.

In this survey it is suggested that the relationship between Online Purchase Intention ( OPI ) and Online Shopping Preference ( OSP ) will be moderated by Product Type ( PT ) ; Retailer Type ( RT ) ; and

1.4.1.2 Independent Variables

Variables Related to Online shopping Utilitarian Value as perceived by consumers

A· IV1: Ease Of Use/ Efficiency/ Usability ( EU )

Ease of usage is identified as the easiness of online shopping and refers to clip and attempt nest eggs through efficient hunt maps, fast download velocity, good overall design and easy ordination processs ( Swaminathan, Lepkowska-White & A ; Rao, 1999 ) . It is believed to be perceived by consumers as a functional value of on-line Shopping. Childers, Carr, Peck & A ; Carson ‘s ( 2001 ) and Koufaris ( 2002 ) indicate that easiness of usage positively influence consumers ‘ pick of the cyberspace as their preferable retail channel. In this survey, it is suggested that Ease of usage ( EU ) will hold a positive consequence on Online Shopping Preference ( OSP ) .

A· IV2: Convenience ( CO )

Convenience is defined as easiness of shopping via place based 24/7 handiness ( Jang & A ; Burns, 2004 ; Park, Lennon & A ; Stoel, 2005 ; and Rogers, Negash & A ; Suk, 2005 ) . It is the 2nd factor perceived by consumers as a functional value of on-line Shopping. Girard, Korgaonkar & A ; Silverblatt ( 2003 ) ; and Rohm & A ; Swaminathan ( 2004 ) established that convenience was one of the most outstanding attractive forces to shopping online. In this survey, it is suggested that Convenience ( CO ) will hold a positive consequence on Online Shopping Preference ( OSP ) .

A· IV3: Informative-ness ( IN )

A 3rd factor thought to be perceived as a functional value of on-line shopping is Informativeness, defined as the extent to which a channel is perceived to supply relevant and in-depth information for determination devising ( Chen & A ; Dubinsky, 2003 ) . . Girard, Korgaonkar & A ; Silverblatt ( 2003 ) and Park, Lennon & A ; Stoel ( 2005 ) indicate that a positive relationship exists between Informativeness and consumers ‘ pick of the cyberspace as their preferable retail channel.

In this survey, it is suggested that Informativeness ( IN ) will hold a positive consequence on Online Shopping Preference ( OSP ) .

A· IV4: Perceived Control ( Personal computer )

Perceived Control is defined as the demand to show one ‘s competency, high quality and command over the environment ( White, 1959 ) , and human desire to experience dominant and influential ( Ward & A ; Barnes, 2001 ) . It has a important function in explicating consumer behaviour and research suggests that online shoppers search for freedom and control, where the accent is on end achievement instead than on holding a compelling experience Wolfinbarger & A ; Gilly ( 2001 ) . On-line shoppers take pleasance in the deficiency of committedness ( Mick & A ; Fournier, 1998 ) because it increases their efficiency, helps them minimise the attempt of doing a purchase, therefore increasing their sense of control. It is the 4th factor perceived by consumers as a major functional value of the on-line shopping experience. Harmonizing to Koufaris, 2002, Perceived control leads to less hazard perceived by consumers, therefore serves as a incentive for consumers to prosecute in online shopping. In this survey, it is suggested that Perceived Control ( Personal computer ) will hold a positive consequence on Online Shopping Preference ( OSP )

A· IV5: Cost decrease ( CR )

The 5th factor thought to hold important consequence on online shopping functional value perceived by consumers is the possibility of cost decrease, which has been identified as by Mathieson ( 1991 ) , who stated that the possibility of monetary value comparing of merchandises and better monetary values compared to traditional shopping would function as a incentive for online shopping penchant. ( Rosen & A ; Howard, 2000 set up a positive relationship between reduced cost as a value of on-line shopping and penchant of consumers to online shopping. In this survey, it is suggested that Cost Reduction ( CR ) will hold a positive consequence on Online Shopping Preference ( OSP )

A· IV6: Wider Selection ( WS )

The 6th factor, Wider Selection, was identified by Gilly & A ; Wolfinbarger ( 2000 ) ; Rosen & A ; Howard ( 2000 ) ; and Wolfinbarger & A ; Gilly ( 2001 ) as a functional value of the on-line shopping experience. Wider choice offers consumers the capacity to do more efficient monetary value comparings ( Donthu & A ; Garcia 1999 ) , and through using the advantage of on-line monetary value transparence and low hunt costs, purchase determinations are easier, more dependable and demo important cost decrease. Bagdoniene & A ; Zemblyte ( 2009 ) suggested a positive relationship between wider merchandise choice and online shopping penchant. In this survey, it is suggested that Wider Selection ( WS ) will hold an influence on Online Shopping Preference ( OSP )

A· IV7: Usefulness/ Achievement ( US )

The 7th and concluding factor, Usefulness, is defined as a shopping orientation related to end achievement, where success in happening specific merchandises that were planned for at the beginning of the shopping experience is of import ( Kim, 2004 in Kim, 2006. Childers, Carr, Peck & A ; Carson, 2001 define utility as the grade to which the usage of the selected medium will better user public presentation, largely mentioning to the result of a shopping experience ; moreover, they indicate that usefulness serves as a incentive for penchant of the cyberspace as a retail channel. In this survey, it is suggested that Usefulness ( US ) will hold a positive consequence on Online Shopping Preference ( OSP ) Variables Related to Online shopping Utilitarian Value as perceived by consumers.

A· IV8: Adventure Shopping ( AS )

The first factor thought to be perceived by consumers as a hedonistic value of on-line shopping is adventure shopping, described as shopping for exhilaration, escapade, and stimulation through diverse environments ( Arnold & A ; Reynolds, 2003 ) . Koufaris ( 2002 ) established a positive relationship between the perceived hedonistic value of on-line shopping and penchant to the cyberspace as a retail channel. Therefore, Adventure shopping ( AS ) will be proposed in this survey as a positive influencer of Online Shopping Preference ( OSP ) .

A· IV9: Social Shopping ( SS )

The 2nd identified factor is societal shopping, defined as shopping with a focal point on the societal benefits of shopping with friends and household ( Arnold & A ; Reynolds, 2003 ) . Social shopping ( SS ) will be proposed in this survey as a positive influencer of Online Shopping Preference ( OSP ) .

A· IV10: Gratification Shopping ( GS )

Gratification Shopping is described every bit shopping as a agency to bring forth a positive feeling, and do one feel better. ( Arnold & A ; Reynolds, 2003 ) It relates to fun, exhilaration and is the 3rd variable identified as factor of consumer perceived hedonistic value. Gratification shopping ( GS ) will be proposed in this survey as a positive influencer of Online Shopping Preference ( OSP ) .

A· IV11: Idea Shopping ( IS )

The 4th factor perceived as a hedonistic value of on-line shopping by consumers is thought shopping, described as shopping to garner information about new tendencies, manners, and merchandises ( Arnold & A ; Reynolds, 2003 ) . Idea shopping ( IS ) will be proposed in this survey as a positive influencer of Online Shopping Preference ( OSP ) .

A· IV12: Role Shopping ( RS )

Role shopping is described in the literature as shopping for the pleasance of doing purchases for others and happening the perfect gift ( Arnold & A ; Reynolds, 2003 ) and is the 5th factor considered to be perceived by consumers as a hedonistic value of on-line shopping. Role shopping ( RS ) will be proposed in this survey as a positive influencer of Online Shopping Preference ( OSP ) .

A· IV13: Value Shopping ( VS )

The concluding and 6th variable identified is Value Shopping, described as shopping for the joy of runing for deals, happening price reductions, and seeking gross revenues ( Arnold & A ; Reynolds, 2003 ) . Value shopping ( VS ) will be proposed in this survey as a positive influencer of Online Shopping Preference ( OSP ) .

1.4.1.3 Moderating Variables

The research worker will analyze the function of the following moderating variables in this research,

* Product Type ( PT )

Three wide merchandise classs are identified in this research:

( 1 ) Search Product

Defined as one that a consumer can do a determination about by review prior to buy & As ; when full information for dominant merchandise properties can be known anterior to buy ( Nelson, 1970, 1974 cited in Girard, Korgaonkar, & A ; Silverblatt ( 2003 ) . Examples of hunt merchandises, as defined in the literature are ‘Books and Personal Computers ‘ ( Girard, Korgaonkar & A ; Silverblatt, 2003: 111 ) .

Based on the research workers ‘ old empirical findings, the Search merchandise selected for proving in this survey will be ‘Books ‘ .

( 2 ) Credence merchandise

Defined as a merchandise for which the mean consumer, even after usage, can non verify the degree of quality or even their degree of demand for ( Darhy & A ; Karni, 1973 in Girard, Korgaonkar, & A ; Silverblatt ( 2003 ) . Credence qualities are chiefly found in professional contexts, such as medical services and pension programs, because consumers normally lack the cognition to measure them ( Asch, 2001 ) .

The Credence Product selected for proving in this research will be ‘Vacation ‘ . This was supported through old literature account of acceptance merchandises and equality of the significance to this peculiar merchandise.

( 3 ) Experience merchandise

Defined as one whose qualities a consumer can non find prior to buy but instead requires direct experience, or that for which information hunt for dominant properties is more costly/difficult than direct merchandise experience.

It is farther classified into ( a ) experience nondurable ( see 1 ) goods, which are high frequence of purchase goods, such as vesture and aroma and ( B ) experience lasting ( see 2 ) goods, which are low frequence of purchase goods, such as cellular phones and telecastings ( Kline 1998: 199 ) .

Durable and Non Durable Experience merchandises selected for proving in this research will be ‘Mobile Phone ‘ and ‘Clothes ‘ , severally, as supported by the consequences of the empirical survey conducted by Girard, Korgaonkar & A ; Silverblatt ( 2003 ) .

Based on the findings of Girard, Korgaonkar, & A ; Silverblatt ( 2003 ) , the research worker suggests that the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) will be moderated by Product Type ( PT ) . It is besides suggested that online shopping purpose will be greatest for Search merchandises and Credence merchandises, followed by Durable experience ( experience-1 ) merchandises and Non lasting experience ( experience-2 ) merchandises, severally.

A· Retailer Trust ( RT )

It is believed that the sum of trust towards a certain e-retailer affects how the client perceives the hazards associated with an on-line purchase from that e-retailer ( Comegys, Hannula & A ; Vaisanen, 2009 ) . Trust has been proven to impact purchase purposes ( Jarvenpaa, Tractinsky & A ; Vitale, 2000 ; Schlosser, White & A ; Lloyd, 2005 ; Shankar, Urban & A ; Sultan, 2002 ; Yoon, 2002 & A ; Buttner and Goritz, 2008 ) . Hoffman, Novak & A ; Peralta ( 1999 ) stated that deficiency of consumers ‘ trust is one of the chief hindering factors of e-transactions. Castelfranchi & A ; Tan ( 2002 ) added that on-line shoppers will non acquire involved in on-line minutess unless the sensed degree of trust exceeds the minimal degree acceptable to the shopper.

Trust will be tested in this survey by measuring consumer purpose to buy from ( 1 ) International Reliable Website, ( 2 ) Local Online Retailer. This premise was made based on the sentiments of experts gathered during the structured interviews conducted in the research procedure. The research worker suggests that the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) will be moderated by Retailer trust ( RT ) .

A· Payment Method ( PM )

The payment methods utilized in this survey are ( 1 ) Cash on bringing, ( 2 ) Online recognition card payment. The research worker believes that these two methods will be a good step of the ‘Payment Risk ‘ associated with online shopping, defined in the old literature as hazard that there might be fiscal effects of on-line payment ( Credit Card figure ) ( Cases, 2002 ; and Forsythe & A ; Shi, 2003 ) .

The research worker suggests that the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) will be moderated by Payment Method ( PM ) .

1.4.2 Research Premises

The followers are the premises the research worker used in this research:

* A1: The research worker assumes that the three merchandises tested, ‘Books ‘ , ‘Clothes ‘ & As ; ‘Mobile phones ‘ , are representative of three merchandise classs identified in the literature, viz. Search, Non Durable Experience and Durable Experience Products, severally. This premise was supported by old findings by Girard, Korgaonkar & A ; Silverblatt ( 2003 ) .

* A2: The research worker assumes a ‘Vacation ‘ will be a sufficient representative of a Credence merchandise. This premise was supported through old literature account of acceptance merchandises and equality of the significance to this peculiar merchandise.

* A2: The research worker assumes that Trust in the Retailer ( TR ) is best measured by the selected points, ‘International Reliable Website ‘ & As ; ‘Local Online Retailer ‘ . This premise was supported by the sentiments of experts gathered during the structured interviews.

* A3: The research worker assumes that the payment methods to be tested ‘Cash on bringing ‘ & amp ; ‘Online Credit Card payment ‘ are sufficient to set up the difference in purchase purpose in payment methods exhibited by consumers. This premise was supported by the sentiments of experts gathered during the structured interviews.

* A4: The research worker assumes that a relationship exists between the theoretical account ‘s variables, as proven by old research workers Sahney, Shrivastava, & A ; Bhimalingam ( 2008 ) ; Koufaris ( 2002 ) ; Childers, Carr, Peck, & A ; Carson ( 2001 ) ; Kim ( 2006 ) , Chen & A ; Lee ( 2008 ) and Zhang ( 2006 ) .

1.4.3 Research Restrictions

The followers are the restrictions the research worker found relevant to this research:

* L1: This research is limited to internet users, as it is believed that merely cyberspace users are eligible for on-line shopping.

* L3: This research is limited to the Egyptian population life in Cairo, as due to clip restraints the research worker will non be able to go outside of Cairo.

* L4: This research is limited to non-probability sampling, but the research worker believes that it yielded a just representation.

* L5: this research does non take into history the consequence of other moderating and independent variables that may hold an consequence on Online Shopping penchant and Online Purchase Intention such as Personality factors, Risk perceptual experience and Cultural factors.

1.5 RESEARCH QUESTIONS

1.5.1 Major Research Questions

( MjRQ1 ) What are the factors that largely influence Egyptian consumers ‘ pick of the cyberspace as their prefered retail channel?

( MjRQ2 ) What are the factors that moderate the Online Purchase Intention of Egyptian consumers?

By replying these inquiries, the research worker should be able to supply retail merchants with way and assist them optimise their selling scheme and capitalise on available chances. It will be a agency for those retail merchants to cognize what they need to concentrate on in order to win in the Egyptian market.

1.5.2 Minor Research Questions

The minor inquiries test the relationships that are in the signifier of hypotheses developed by the research worker in this research theoretical account diagram exposing the factors act uponing and chairing consumer ‘s online shopping penchant and purpose. The inquiries address the relationships between the theoretical account variables that were established by old research workers Sahney, Shrivastava, & A ; Bhimalingam ( 2008 ) ; Koufaris ( 2002 ) ; Childers, Carr, Peck, & A ; Carson ( 2001 ) ; Kim ( 2006 ) , Chen & A ; Lee ( 2008 ) and Zhang ( 2006 ) .

( MnRQ1 ) To what extent does the Ease of usage ( EU ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ2 ) To what extent does the Convenience ( CO ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ3 ) To what extent does the Informativeness ( IF ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ4 ) To what extent does the Wider Selection ( WS ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ5 ) To what extent does the Perceived Control ( Personal computer ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ6 ) To what extent does the Cost Reduction ( CR ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ7 ) To what extent does the Usefulness ( US ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ8 ) To what extent does the Adventure Shopping facet ( AD ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ9 ) To what extent does the Social Shopping facet ( SO ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ10 ) To what extent does the Gratification Shopping facet ( GR ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ11 ) To what extent does the Idea Shopping facet ( ID ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ12 ) To what extent does the Role Shopping facet ( RO ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ13 ) To what extent does the Value Shopping facet ( VA ) associated with on-line shopping as a retail channel positively affect Online Shopping Preference ( OSP ) ?

( MnRQ14 ) To what extent does Product Type ( PT ) moderate the relationship between Online Shopping penchant ( OSP ) and Online Purchase Intention ( OPI ) ?

( MnRQ15 ) To what extent Retailer Trust ( RT ) moderate the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) ?

( MnRQ16 ) To what extent does Payment Method ( PM ) moderate the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) ?

Research Hypothesiss

The research nothing and alternate hypotheses are formulated to prove the relationships among variables as follows:

Table 1.1: Formulation of the Null and Alternative hypothesis of the research

Acronym

Null Hypothesis

Alternate Hypothesis

H1a

Ease of Use ( EU ) associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

Ease of Use ( EU ) associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H1b

Convenience ( CO ) associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

Convenience ( CO ) associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H1c

Informativeness ( IN ) associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

Informativeness ( IN ) associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H1d

Wider Selection ( WS ) associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

Wider Selection ( WS ) associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H1e

Perceived Control ( Personal computer ) associated with Online Shopping does non positively affect Online Shopping penchant ( OSP ) .

Perceived Control ( Personal computer ) associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H1f

Cost Reduction ( CR ) associated with Online Shopping does non positively affect Online Shopping Preference ( OSP )

Cost Reduction ( CR ) associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H1g

Utility ( US ) associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

Utility ( US ) associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H2a

The Adventure Shopping ( AD ) aspect associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

The Adventure Shopping ( AD ) aspect associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H2b

The Social Shopping ( SO ) facet associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

The Social Shopping ( SO ) facet associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H2c

The Gratification Shopping ( GR ) facet associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

The Gratification Shopping ( GR ) facet associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H2d

The Idea Shopping ( ID ) facet associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

The Idea Shopping ( ID ) facet associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H2e

The Role Shopping ( RO ) facet associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

The Role Shopping ( RO ) facet associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H2f

The Value Shopping ( VA ) facet associated with Online Shopping does non positively affect Online Shopping Preference ( OSP ) .

The Value Shopping ( VA ) facet associated with Online Shopping positively affects Online Shopping Preference ( OSP ) .

H3

Merchandise Type ( PT ) does non chair the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) .

Merchandise Type ( PT ) moderates the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) .

H4

Retailer Type ( RT ) does non chair the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) .

Retailer Type ( RT ) moderates the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) .

H5

Payment Method ( PM ) does non chair the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) .

Payment Method ( PM ) moderates the relationship between Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) .

1.6 RESEARCH METHODOLOGY

1.6.1 Research Type

This research is of an analytical nature as it is aimed to specify the factors that largely influence Online Shopping Preference and Online Purchase Intention. The research lies in the quantitative paradigm, it will bring forth quantitative informations, utilizing a big sample due to the big size of the population under survey, and is concerned with the hypothesis proving in its application. The research is deductive, as the theoretical accounts it has been adapted from were tested earlier in different parts of the universe including United States, England, New Zealand, China, Brazil, Bulgaria and India and the research worker intends to prove it locally amongst the Egyptian consumers. Finally, the research is basic, as it is done chiefly to heighten the apprehension of certain jobs that normally occur in organisations ; nevertheless the research worker believes it can easy be converted into the applied type and used by using its findings to work out a particular, bing job demanding a timely solution in the universe of e-commerce.

The research worker uses a transverse functional questionnaire to take a snapshot of the current state of affairs in the Egyptian market and utilize the informations gathered to mensurate the factors that influence the Online Shopping Preference and Online Purchase Intention of Egyptian consumers. Data Collection methods

The information aggregation in this survey consists of two stairss as follows:

* STEP 1

Eight structured interviews with experts in the field of e-commerce were conducted ( Appendix A ) . Their countries of expertness scope from pure service suppliers, such as cyberspace banking ( HSBC ) , academic research database suppliers ( ENSTINET ) , e-booking and reserves ( Thomas Cook ) and Cell phone service suppliers ( unrevealed beginning ) ; an cyberspace based fast nutrient telling service supplier ( otlob.com ) ; Facebook based cyberspace dress & A ; decorative retail merchants ( Bath & A ; Body Works ) ; a local Candle maker & A ; retail merchant ( Relax Candle Store ) and an cyberspace based Grocery shop innovator ( elsou2.com ) ; The purpose of these interviews was to roll up firsthand information from experts with a dependable and strong apprehension of the Egyptian consumers and of the subjects standby. The experts validated the selected influential factors every bit good as the determined merchandise types, retail merchant types and payment methods used. It besides provided deepness about the topic standby ( Appendix A ) .

* STEP 2

The result of the unstructured interviews was so filtered to bring forth a close-ended-questions questionnaire that would be completed by convenience and sweet sand verbena sampling techniques ( Appendix B ) . This is a structured, conclusive stage that provided quantitative informations, to prove the particular hypotheses and analyze the relationships amongst the defined variables.

The research worker adopted most of the study instrument ‘s inquiries and graduated tables from old surveies conducted by old research workers to guarantee cogency and dependability. Four antecedently used inquiries were eliminated from the study due to irrelevance. The graduated table used in the questionnaire was unified to the 5-point-Likert Scale as used in most old surveies. The research worker added one multiple Choice inquiry for conclusive intents in the survey. Table 3.1 provides a summery of the beginnings from which questionnaire was adapted.

Table 1.2: Beginnings and Scales of the questionnaire

Variable

Beginning

Scale

Ease of usage

Childers, Carr, Peck & A ; Carson ( 2001 )

7 point Likert

Convenience

Bagdoniene & A ; Zemblyte ( 2009 )

5 point Likert

Control

Koufaris, 2002

7 point Likert

Informativeness

Bagdoniene & A ; Zemblyte ( 2009 )

5 point Likert

Wider choice

Delafrooz, Paim & A ; Khatibi ( 2009 )

5 point Likert

Cost decrease

Delafrooz, Paim & A ; Khatibi ( 2009 )

5 point Likert

Utility

Childers, Carr, Peck & A ; Carson ( 2001 )

7 point Likert

Adventure

Kim ( 2006 )

5 point Likert

Gratification

Kim ( 2006 )

5 point Likert

Social

Kim ( 2006 )

5 point Likert

Function

Kim ( 2006 )

5 point Likert

Idea

Kim ( 2006 )

5 point Likert

Value

Kim ( 2006 )

5 point Likert

Preference

Joseph, Grewal, Mangleburg, Park, Chon, Claiborne, Johar & A ; Berkman ( 1997 )

5 point Likert

Purpose

Putrevu & A ; Lord ( 1992 )

7 point Likert

The seven variables related to Perceived useful value represented a subdivision in the questionnaire, as did the six variables related to Perceived hedonistic value and the Online Shopping Preference variable. The research worker so proceeded with inquiries related to the three chairing variables in the undermentioned subdivisions. The first subdivision of the study referred to internet usage wonts of the respondents, and the last subdivision referred to their demographics. Almost all the inquiries were graded on a 5-point-Likert graduated table, where 1 indicates Strongly Disagree and 5 indicates Strongly Agree ) .

The questionnaire was made available in English and was posted on the cyberspace for two hebdomads. It was circulated via electronic mail and Facebook to co-workers, friends and household members for completion. At the terminal of the two hebdomads yearss 315 respondents had completed the study. Table 3.3 provides a sum-up of the Mapping of Research Questions, Hypotheses, Dimensions and Items in Questionnaire.

Table 3.3: Function of Research Questions, Hypotheses, Dimensions and Items in Questionnaire

Minor Research Questions

Alternate Hypothesis

Theoretical

Model

Variables

Operationalization

Items in Questionnaire

MnRQ1: To what extent does EU positively affect OSP?

Ha1a: EU positively affects OSP

* Ease of Use ( EU )

* Online Shopping Preference ( OSP )

Relationship between EU and OSP

MnRQ2: To what extent does CO positively affect OSP?

Ha1b: CO positively affects OSP

* Convenience ( CO )

* Online Shopping Preference ( OSP )

Relationship between CO and OSP

MnRQ3: To what extent does IN positively affect OSP?

Ha1c: IN positively affects OSP

* Informativeness ( IN )

* Online Shopping Preference ( OSP )

Relationship between IN and OSP

MnRQ4: To what extent does WS positively affect OSP?

Ha1d: WS positively affects OSP

* Wider Selection ( WS )

* Online Shopping Preference ( OSP )

Relationship between WS and OSP

MnRQ5: To what extent does the Personal computer positively affect OSP?

Ha1e: Personal computer positively affects OSP

* Perceived Control ( Personal computer )

* Online Shopping Preference ( OSP )

Relationship between Personal computer and OSP

MnRQ6: To what extent does CR positively affect OSP?

Ha1f: CR positively affects OSP

* Cost Reduction ( CR )

* Online Shopping Preference ( OSP )

Relationship between CR and OSP

MnRQ7: To what extent does US positively affect OSP?

Ha1g: US positively affects OSP

* Usefulness ( US )

* Online Shopping Preference ( OSP )

Relationship between US and OSP

MnRQ8: To what extent does AD positively affect OSP?

Ha2a: AD positively affects OSP

* Adventure Shopping ( AD )

* Online Shopping Preference ( OSP )

Relationship between AD and OSP

MnRQ9: To what extent does SO positively affect OSP?

Ha2b: SO positively affects OSP

* Social Shopping ( SO )

* Online Shopping Preference ( OSP )

Relationship between SO and OSP

MnRQ10: To what extent does GR positively affect OSP?

Ha2c: GR positively affects OSP

* Gratification Shopping ( GR )

* Online Shopping Preference ( OSP )

Relationship between GR and OSP

MnRQ11: To what extent does ID positively affect OSP?

Ha2d: ID positively affects OSP

* Idea Shopping ( ID )

* Online Shopping Preference ( OSP )

Relationship between ID and OSP

MnRQ12: To what extent does RO positively affect OSP?

Ha2e: RO positively affects OSP

* Role Shopping ( RO )

* Online Shopping Preference ( OSP )

Relationship between RO and OSP

MnRQ13: To what extent does VA positively affect OSP?

Ha2f: VA positively affects OSP.

* Value Shopping ( VA )

* Online Shopping Preference ( OSP )

Relationship between VA and OSP

MnRQ14: To what extent does PT chair the relationship between OSP and OPI?

Ha3: PT moderates the relationship between OSP and OPI

* Product Type ( PT )

* Online Shopping Preference ( OSP )

* Online Purchase Intention ( OPI )

Moderating consequence of PT on relationship between OSP and OPI

MnRQ15: To what extent does RT chair the relationship between OSP and OPI?

Ha4: RT moderates the relationship between OSP and OPI

* Retailer Trust ( RT )

* Online Shopping Preference ( OSP )

* Online Purchase Intention ( OPI )

Moderating consequence of RT on relationship between OSP and OPI

MnRQ16: To what extent does PM chair the relationship between OSP and OPI?

Ha5: PM moderates the relationship between OSP and OPI

* Payment Method ( PM )

* Online Shopping Preference ( OSP )

* Online Purchase Intention ( OPI )

Moderating consequence of PM on relationship between OSP and OPI

1.6.2 Sampling Standards

The population size of cyberspace users in Egypt is about 13.5 1000000s ( Ministry of Communications and Information Technology ) . The sample size should be 384 clients harmonizing to Krejcie & A ; Morgan ( 1970 ) in Sekaran ( 2003 ) . The issue of sample size is one of several where there is no consensus. The research worker considered the above as the guideline for the sample size.

The sample chosen was based on anterior cognition of internet use and was conducted through a non-probability convenience sweet sand verbena trying design since the sample is a group of respondents that were selected by the research worker, and the subsequent respondents were selected based on referrals by the initial respondents. The research worker managed to have 315 respondents. Furthermore, a non-probability judgmental trying attack was besides used for the first stage that includes experts in the field of e-commerce. The explorative research standard is used in this stage because the research worker needs firsthand information from the experts in the field to formalize the variables identified and to obtain more insight and understanding on the capable affair. The size of the sample that the research worker was able to reach is eight experts.

1.6.3 Data Analysis Methods

The consequences of the questionnaire are analyzed utilizing assorted analysis methods and an reading of the informations collected from the closed ended questionnaire will follow in the following chapters. The analysis of the information is divided into four parts, 1 ) Descriptive analysis, 2 ) Dependability proving, 3 ) Inferential information analysis, and 4 ) Managerial analysis.

1 ) Descriptive Analysis:

The research worker described the questionnaire informations collected through frequence tabular arraies, steps of cardinal inclination ( average and standard divergence ) and graphical presentations ( Pie charts and bars ) .

2 ) Dependability testing:

Reliability trial was used to supply information about the relationships between single points in the graduated table. Cronbach ‘s Alpha is the theoretical account of dependability trials that was used to bespeak the consistence of internal informations, based on the mean inter-item correlativity. The closer the coefficient to 1, the higher the internal consistence of the graduated table ; and most professionals agree that a Cronbach ‘s Alpha value neighbouring 0.70 is considered dependable ( Sekaran, 2003 ) . The research worker considered all variables with Cronbach ‘s Alpha larger than 0.70 as dependable in this survey.

1 ) Inferential information analysis:

The research worker analyzed each dependant variable individually. Relationship between the factors perceived as values of shopping and Online Shopping Preference ( OSP ) was analyzed through multiple Regression Analyses across the overall informations, so across each constituent of the different demographic groups identified in the survey: Gender ( Male & A ; Female ) ; Age Group ( a‰¤35 yrs and & gt ; 35 year ) ; Income degree ( a‰¤ 5000 LE/month and & gt ; 5000 LE/month ) and Educational Level ( Graduates/Pre-graduates and Post Gradates ) . A sum of nine Regression Analysis trials were run on these variables. The decision of this subdivision of analysis was the designation of the factors that influence Online Shopping Preference.

The 2nd variable, Online Purchase Intention ( OPI ) was measured in 16 different scenarios offering a combination of the moderating variables used in this survey, viz. , the four Merchandise Types ( PT ) : Search, Durable and Nondurable Experience Products and Credence Products ; every bit good as the two retail merchant types meaning Retailer Trust ( RT ) , International and Local Retailers and eventually the two Payment Methods ( PM ) , Cash and Credit Card Payment. Multiple Regression Analyses were performed for each moderating variable and the Online Purchase Intention ( OPI ) was measured across four different state of affairss for Product Type, and across eight different state of affairss in the instances of Retailer Trust ( RT ) and Payment Method ( PM ) .

Arrested development Analysis was used because it is considered the best method of analysis when the focal point is on the relationship between a dependent variable and one or more independent variables.

4 ) Managerial analysis:

For this subdivision of informations analysis, the research worker focused on the variables of the theoretical account individually. Analysiss of the factors perceived as functional and hedonistic values of online shopping were performed ; every bit good as analysis of Online Shopping Preference ( OSP ) and Online Purchase Intention ( OPI ) . The research worker so conducted a more specific analysis on Product Types, Retailer Trust ( RT ) and Payment Method ( PM ) variables, placing their overall discrepancies every bit good as across demographic and internet use wonts groups. Detailed analysis of the differences in consequences ascertained across demographic groups and Internet use wonts groups was besides executed. Finally, the research worker analyzed the cross shopping form of the respondents in relation to other variables in an effort to come up with tendencies or wonts that would be of managerial benefit. For the managerial analysis subdivision of this research, the user executed One Sample T-Tests, Paired Samples T-Tests, Independent Samples T-Tests, One-way ANOVA, Chi-Squares, Frequency Tests and Means Analysis.

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