A Study of Factors Motivating People towards Online Purchasing

By

ACKNOWLEDGEMENT

It gives me great pleasure to express my gratitude towards my professor who has also been my mentor. My professor has always been a source of confidence for me. Here I also want to express my gratitude towards my mother and my father who have always shown belief in me. My entire family, including my mother, fathers, sister and brother, all have continuously supported my throughout my life and my academic career. I would also like to express my gratitude towards my University and my Department, including the supervisors, faculty members and peers, for their continuous support during my research study.

DECLARATION

The content mentioned within this thesis/dissertation is my own work and opinions and does not provide opinions of any other individual or entity. I would also like to declare that this thesis/dissertation has not been submitted or published previously.

ABSTRACT

Internet has a specific place within the means of online selling and many companies attempt to integrate the Internet tool in their marketing strategy to market or to sell. More and more retailers, brands, and products are now selling online. The consumer can virtually get what he wants on the Internet, and with no hassle. Making a purchase is always a social act and there are some important rules to playing in consumer psychology. These rules can be applied generally to the purchase behaviour and shopping online. The purpose of this study is to analyse the concept of online shopping and explore the perception of consumers regarding online shopping as compared to traditional shopping.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Research Background1

Research Aims and Objectives2

Research Question2

Research Hypothesis2

Research Method3

Structure of the thesis3

CHAPTER 2: LITERATURE REVIEW4

Online Purchasing4

Online Purchasing and Consumer Behaviour5

Factors influencing the Consumer Behaviour7

The Buying Decision Model8

Motivation towards Buying Online8

Enjoyment9

Convenience and Ease of Use10

24 Hours Access for Order Placement10

Situational factors11

Product characteristics12

Previous online shopping experiences12

Trust in online shopping13

CHAPTER 3: METHODOLOGY15

Research Aims and Objectives15

Research Design15

Ethical Considerations16

CHAPTER 4: RESEARCH FINDINGS, ANALYSIS AND DISCUSSION18

Respondent's Demographic Information18

Responses from the questionnaire Survey21

Reasons for Online Purchase21

Barriers for Online Purchase25

Purchase Experience28

Consumer Behaviour33

Consumer Characteristics40

CHAPTER 6: CONCLUSION AND LIMITATIONS43

Conclusion43

Limitations45

REFERENCES46

APPENDIX53

Appendix A: Consent form53

Appendix B: Questionnaire Survey54

Appendix C: Responses of Questionnaire Survey58

CHAPTER 1: INTRODUCTION

Research Background

Internet is a very useful medium which can serve as a useful purpose for many functions. Recently, internet has been used intensively in the field of business and marketing in particular. There are a wide range of industries that have benefited from the use of internet. Many organisations have enjoyed benefits of marketing or selling their products and services online thus reducing the total cost of the product or service (Jayawardhena, Wright and Dennis 2007, 515). Now firms are increasingly paying attention towards introducing new and improved technology to better harvest this promising medium.

Although much attention is now being paid to introduce new and advanced technology, internet business is still considered to be in its formative years. However, the situation will not remain the same for long. Day after day new technology is being developed and marketers are striving to find technology which ...