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UNIVERSITY OF ELECTRONIC SCIENCE AND TECHNOLOGY OF CHINA

MASTER RESEARCH REPORT

A Master Research Report submitted to University of Electronic, Science and Technology of China

Thesis Title: Impact of E-Commerce Innovation on the Chinese

Purchasing Behavior: Using C to C as an Example


Major: Author: Management Science and E-Commerce Gbongli Komlan

Student No: 201023110114 Advisor: School: Date: Dr. Jiaming Fang School of Management and Economics May, 2012

Abstract

Abstract

Since 1970, China has entered into a new governance system which has enabled the country to shift from closed, central planning to a more general customer-oriented strategy, an essential phase for the global economy. Therefore in 2010, China became the world largest exporter in general goods. Though it also tried to be the world largest e-commerce country due to its possession of many resources and capabilities to gain a competitive advantage over other countries, China was still struggling behind the leading e-commerce countries. Surprisingly, China is progressively beginning to improve their infrastructure and innovation of e-business Companies; they have developed a well planned websites like e-banking service websites, auction websites, and online commercial platform websites to purposely support their e-commerce growth. Many people assumed in 2009, it would be negatively affected by the global financial crisis but electronic commerce was still at its peak. Some of the reason of that expansion may have been the availability of the product found on the web as compared to the off-line, or the opportunity for the consumer
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Master Research Report Of University Of Electronic, Science And Technology Of China

to easily search for the discount products or items on the internet. As the number of Chinese online shoppers increase, it becomes increasingly necessary to know Chinese people decision-making. The factors that influenced the purchasing behavior of two hundred fifty two (252) online shoppers mainly a cross-section of students from University of Electronic Science and Technology of China (UESTC) comprising of Chinese National and other International Students from other nations. This research showed that the ease or convenience of the website, the quality of the product information provided the price type and the perceived trust greatly enhanced the satisfaction of online shoppers and significantly influenced their buying intentions. The buying intention of consumers was used as the dependent variable in the construction of the research model (see figure1 in chapter one). The dependent variable was also tested against the demographic features and previous experience of internet usage, frequency of use and the level of computer literacy. The objective of this research was to discuss the theoretical issues that remain uncovered by literature and that need deeper understanding. The measuring indices of the major variables studies in this work were adapted from those used recently in the research literature. All of the questionnaires used 5 points Likert Scales. Test items in the
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Abstract

questionnaire included the following constructs: Convenience, Trust, Product Information, Buying Intention and Satisfaction. These gave measurement procedure developed for this work. The respondents were asked to complete structured questionnaires which were used to evaluate their buying intention. The online shopping exercise gave me useful insights into factors relating to website commercial activities and provided the subject with a recent online buying experience to call upon when filling in the questionnaire. First we found a strong relationship between internet users experience the trust. Then product information also was found to have positive influence on the online consumers satisfaction. Also, there was significant positive correlation between the general satisfaction variable (dependent variable) and convenience, trust, product price, product availability and trust according to the correlation coefficients which showed a positive value for the independent variable. The findings according to the analysis were that Chinese people are gradually shifting their buying and selling behavior from the old customs of the buying and selling. They prefer to purchase on the trusted and secured network and that gives them some sort of convenience once they are satisfied with the product price, product availability and sometimes the product quality and information. Friends and relatives with experience in the
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Master Research Report Of University Of Electronic, Science And Technology Of China

use of the internet, influence the purchasing behavior according to the model analysis performed. The overall background of the respondents was as follows: The sample was made of two hundred and fifty-two (252) students. 64.3% were Chinese students whiles the remaining 35.7% were International students. The respondents were students who are mainly online shoppers, highly educated in various courses (Management Science and E-Commerce, Finance and Economy, Electrical and Electronic Engineering, Macro-Electronic Engineering, Computer Science and Engineering) with high income. Many of the respondents had previous experience of using the internet. Two hundred and eighty (280) questionnaires were distributed and two hundred and fifty-two(252) representing 90% were received, 42.5% females and 57.5% males students with about 61.5% between ages of 19-24 years and 27.8% between 20-30 years and the rest were either below 18 years or above 31 years. The information was collected by means of self-administered survey with personal supervision and by technical assistant. A formal interview was also done on respondents who found it difficult to understand, or busy to fill the questionnaire. To acquire good information about the study, we used primary and secondary data, and then the statistical tool called Statistical Package of Science Solution (SPSS version 18.0). The conceptual model was
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Abstract

used to help for analyzing the relationship between the different factors and their effect on the electronic consumer behavior which was part of the main benefit of the study. We found that studying consumer behavior provides clues for improving or introducing products or services, price setting, devising channel and creating other marketing strategies. Obviously, marketers or organizations are always looking for emerging trends that suggest new marketing opportunities. Particularly, e-marketers must focus on purchasers social characteristics in order to satisfy them efficiently. According to the result of the study, Chinese culture has a great influence on the satisfaction of consumers. For instance, the way Chinese buyer will respond to a marketing stimulation will be different from the Indian, similarly to the African or the American. As most of the university students are youth, the online business sector must develop customer satisfaction programs as they are scare in China and present a differentiation strategy. Observation is made that, traditional disinclination of Chinese consumer to protest which is embedded in the Confucius teaching is now over. The new economy put in place by the Government has led the youth to search for their right and obligation hence self-interest. Consequently, their demand for the same products in term of quality is becoming high, and that
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Master Research Report Of University Of Electronic, Science And Technology Of China

provide insight for e-commerce both home and abroad to be aware of the reality if they proclaim customer oriented strategy. Keywords: Electronic Commerce, consumer purchasing behavior, influencing factors, SPSS, Consumer buying, decision process.

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1970 2010 2009 , , . , 252


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Master Research Report Of University Of Electronic, Science And Technology Of China

(1) 5

252
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64.3 35.7 280252 9042.557.561.5 19-24 20-30 27.8 18 31 SPSS 18.0 ,


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Master Research Report Of University Of Electronic, Science And Technology Of China

, ,

I here declare on my honor that all information contained in this Master Thesis is essential original obtained from personal field research. References from other sources are however duly cited and acknowledged.

Authors Signature.Date............. I declare, here within, that I have transferred the final digital text document (in the format doc, pdf, or rtf) to my mentoring supervisor that the content and wording is entirely my own work.

Supervisors Signature: Date:.

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Table of Contents

Table of Contents

Thesis Title:Impact of E-Commerce Innovation on the Chinese Purchasing Behavior: Using C to C as an Example ............................................ Error! Bookmark not defined. Chapter 1 Introduction ..................................................... Error! Bookmark not defined. Research Background and Significance ...................... Error! Bookmark not defined. Research Model and Theoretical Concept ................... Error! Bookmark not defined. Model of the Study.................................................. Error! Bookmark not defined. Hypotheses .............................................................. Error! Bookmark not defined. The Problem of the Study ............................................ Error! Bookmark not defined. The Objective of the Study .......................................... Error! Bookmark not defined. Scope and Limitations........8 Outline of the Thesis9 Chapter 2 Literature Review ............................................ Error! Bookmark not defined. 2.2 Overview of e-commerce ...................................... Error! Bookmark not defined. 2.2.1 Definition of E-Commerce ............................ Error! Bookmark not defined. 2.2.2 Brief History of Electronic Commerce .......... Error! Bookmark not defined. 2.2.3 Classification of E-Commerce according to participantsError! Bookmark not defined. 2.3 Consumer Markets ................................................ Error! Bookmark not defined. 2.4 Understanding of Consumer .................................. Error! Bookmark not defined. 2.5 Characteristic Affecting Individual Consumer Behavior ..... Error! Bookmark not defined. 2.5.1 Cultural Characteristic of Consumer ............. Error! Bookmark not defined. 2.5.2 Psychological Characteristic of Consumer .... Error! Bookmark not defined. 2.6 Consumer purchasing behavior in online environment ........ Error! Bookmark not defined. 2.7 Consumer Buying Decision Process..17 2.8 Identified influencing factors of online consumer purchasing behavior ........ Error! Bookmark not defined. 2.8.1 Product- Price................................................. Error! Bookmark not defined. 2.8.2 Convenience ................................................... Error! Bookmark not defined. 2.8.3 Trust ............................................................... Error! Bookmark not defined. 2.8.4 Product availability ........................................................................................ 22 2.8.5 Social Characteristics ..................................... Error! Bookmark not defined. 2.8.6 Experience using internet ............................... Error! Bookmark not defined. 2.8.7 Satisfaction ..................................................... Error! Bookmark not defined.
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Master Research Report Of University Of Electronic, Science And Technology Of China

2.8.8 Purchasing Behavior ...................................................................................... 25 2.8.9 Demography................................................... Error! Bookmark not defined. 2.9 Conclusion ............................................................. Error! Bookmark not defined. Chapter 3 Methodology ................................................... Error! Bookmark not defined. 3.1 Introduction ........................................................... Error! Bookmark not defined. 3.2 Research Design .................................................... Error! Bookmark not defined. Population .................................................................... Error! Bookmark not defined. Sample and Sampling procedure ................................. Error! Bookmark not defined. Demography ................................................................ Error! Bookmark not defined. Sources of Data ........................................................... Error! Bookmark not defined. Instrument for the data collection. ............................... Error! Bookmark not defined. Data analysis................................................................ Error! Bookmark not defined. Chapter 4 Analysis of Results .......................................... Error! Bookmark not defined. 4.1 Introduction ........................................................... Error! Bookmark not defined. 4.2 Results on Reliability of Data ............................... Error! Bookmark not defined. 4.3 Path Analysis ......................................................... Error! Bookmark not defined. 4.4 Discussion ............................................................. Error! Bookmark not defined. Chapter 5: Conclusion...................................................... Error! Bookmark not defined. 5.1 Concluding Remarks ............................................. Error! Bookmark not defined. 5.2 Future Work ........................................................... Error! Bookmark not defined. Acknowledgment ............................................................. Error! Bookmark not defined. References ........................................................................ Error! Bookmark not defined. Appendix.. ...Error! Bookmark not defined.

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Chapter 1 Introduction

Chapter 1 Introduction
1.1 Research Background and Significance

Network has a variety of functions, such as the function of science, economy, education and entertainment. The economy function of network means that we can perform economic activities and create value through the network. Network performs the main economic function by exchanging economic information, producing social communication, trading all kinds of commodities, controlling economies activities. E-Commerce enterprises help to accomplish this function: Firstly, e-commerce enterprises disseminate and collect economic information through the network to realize economic information exchange, Secondly, e-commerce enterprise cooperate and interact with upstream and downstream firms, clients, by network to realize social production and communication functions. In addition, the e-commerce enterprises carry out marketing and payment online and achieve all kinds of commodity trading. Due to the rising development of Information Technology today, the world is being affected electronically shifting which has direct impact on the way people communicate and run their business. The fast growth of internet service providers which connect millions of public scattered over distance, [1] offers consumers with a convenient and inexpensive channel to enjoy the success of online communities. By Sept 2001, the number of internet users was 54% of the USA population and among them, 39% were using internet for online purchasing while 36% were using it to look for product or service [2]. Another research identifies the development of the internet user particularly from the demographic prospective and predicts the number of internet user to be 1.53 billion by 2015 [3]. China is classified [4] as fastest growing internet users in world around 16.9 million which suppose to be doubled each six month. The number of people online in China reached 457 million and the popularity rate of internet has climbed up to 34% with an increase of 54% compared with 2009 ended[5]. In 2011, [6] the Asians internet users represent 44% showing the biggest part and USA 22.4% in the world by geographic region. The result from all figures shows the internet has developed and improved to highly competitive market, where a competition over the consumer is fierce. So far, internet popularity has created a model shift to

Master Research Report Of University Of Electronic, Science And Technology Of China

the traditional way people satisfy their need and want. Consumers are drive to purchase on virtual world at any time and any where they are. A 3000 internet shopper survey shows the increasing number of Australian are purchasing online more than before. Due to the Global financial crisis, more consumers are obliged to look for bargain on wide variety of product which situation started from 2009 [7]. Although the penetration of internet users in China continues to grow, the e-commerce activities still remain low as only 10% of users had fully fulfilled the requirement for online purchasing [8]. If we consider internet users as people using the internet to search for information, to communicate, and to buy, [5] statistical result shows that generally, the information and

communication internets users were higher at the rate of 50% as compared to 26% penetration rate which refer to online shoppers. [5] E-Commerce is relatively new business mode. Therefore, the factors which influence consumers to buy online are different from those that influence traditional consumers. Some other researchers in China studied, what influence traditional online Chinese consumers so far, most Chinese researchers have paid no attention to online shoppers and their behavior. Chinas unique social-cultural environment along with the recent development of Chinas ecommerce markets combine to provide Chinese online shoppers with their own particular characteristics regarding their buying decision-making. In order for e-commerce to survive on the online activities, the satisfaction, the need and want of consumers, and several online problems need to be identified and addressed; these can be regarded as factors influencing online Chinese purchasing decision-making. China is chosen for the testing of the research model because its the highest population in the world with rapid increasing internet users and emerging manageable economy. Thus our model is unique in its ability to represent the most influential factor of online consumer behavior. Ongoing research is being carried to deduce the comparison between Chinese consumer and International consumer. The outcome of these research findings will enlighten and broaden our knowledge on online shopping behavior of other countries as compare to China.

Chapter 1 Introduction

1.2

Research Model and Theoretical Concept

1.2.1 Model of the Study For the online shopping, decision making purchasing behavior is used as the dependent variable, factors relating to the individual consumers, to the product being purchase online were identified as being those which influence the buyer intentions or perceptions. These factors include demographic characteristics, cultural background, previous experience, convenience, trust and social characteristics. Factors relating to the product include product type, price and perceived quality. The ease of website navigation, organizational structure, clears pricing, and simple purchase procedures. Several researchers have reported positive relationship between ease of use (convenience), consumer satisfaction and its related Product.

Convenience or ease of

Product Information

Satisfaction Social Characteristics

Purchasing behavior

Trust Experience using internet


Figure 1-1 The proposed Research model: Online Purchasing Behavior model.

Master Research Report Of University Of Electronic, Science And Technology Of China

1.2.2 Hypotheses E-Commerce has given access to online consumers to manage their time spent to getting product or to reaching a store to purchase products. Several researches confirm that convenience is the fundamental objective associated with the online shopping satisfaction [9]. The most important action a company when dealing with a customer is to create a more convenience before, during and after a purchasing process [10]. In the buying process, if the consumer thinks that the e-vendor company is more convenient for him, the level to repurchase will be higher [11]. Therefore, [12] service convenience was analyzed into different categories decision making where consumers has to pass through various stages: decision-making convenience, accessibility convenience, transaction convenience, gain convenience and follow-up convenience. In addition, when consumers have a strong convenient feeling, the consumer satisfaction will lead to higher satisfaction. Hypothesis (H1): Convenience / ease of use have a positive influence on the online shoppers satisfactions.

Product information includes (product price, product availability and product quality). Information refers to a process and technology involving in gathering knowledge about the product characteristics, quality of the product investigates. Nowadays, consumer satisfaction calls for more and more attention and it is becomes a significant factors that leads markets of business companies to success. Hence, it demonstrated by many literatures that price and quality has higher influence on customer satisfaction. In other hand, it has been affirmed [13] that both quality and satisfaction have subordination to price while quality and satisfaction are also related. If we understand price as an amount of money consumer spent on product for acquiring it, [14] previous researchers shows some inclination through price fairness with regard to consumer satisfaction [15]. They further conclude in another study that price fairness influence direct consumer satisfaction while price perception rather has an indirect impact on consumer satisfaction. We can conclude with the following hypothesis: Hypothesis (H2): Fair Product information includes (product price, product availability and product quality) has positive influence on the online consumer satisfaction.
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Chapter 1 Introduction

Trust was identified as key component in e-business. In the online business activities, trust is developed between an individual and a group of unfamiliar person which may provide positive outcomes for the community as whole. Researches find that a lot of consumers engage in internet purchasing decision on the basis of trust. There is no hesitation that trust is crucial for consumer deciding in commercial dealing like online purchasing [16]. For instance, if we identify one of the attribute of the trust which is benevolence, and then when considering it, on the view of consumer is to analyze whether the e-vendor is preparing to enjoy fast revenue on him or her. Trust has positively perception from the trustee to the trustor. The following hypothesis is drawn: Hypothesis (H3): Trust influences positively the satisfaction and the purchasing behavior of online shoppers.

The study of consumer purchasing provides information about consumer needs and wants which leads to the markets to find a good strategies to satisfy them. Only organization which supplies consumer with all these requirements can be able to survive in the competitive market. Indeed, consumer may react differently and according to a lot a factors which may have impact on their purchasing intention. Often not knowing the recovery of ones own inner driver; consumer s can react differently at the minute by changing his mind. One influential aspect here is the social characteristics made of family, friends, relatives etc. Sometimes in deciding what to purchase, customer like to think of making his or her own consumption choice according to his own point of view, but indeed he or she is led by a lot of social context. With regards to the power of mouth communication to transmit attitudes and behavior, Paul M. Herr, Frank R, Kardes and John Kim [17] affirmed that in part, the word of mouth information has so much influence as it is salient and vivid. Vivid because this type of information is colorful and simple to memorize and it has a great influence on the consumer purchasing decision via satisfaction. From the above understanding we propose the following hypothesis. Hypothesis (H4): Social characteristics influence highly the online shoppers purchasing behavior through their satisfaction.

Master Research Report Of University Of Electronic, Science And Technology Of China

Many factors influence consumer experience positively or negatively. An importance piece of customer satisfaction evaluation implies identifying the key driver that causes their satisfaction or dissatisfaction. Researches on satisfaction and values show a lot of antecedents to online customer, for instance on convenience and global choice [18]. [19] Satisfaction is the feeling that the service provided is of a real value in view of the customer. A lot of researches were showed that consumer satisfaction is the core of keeping them. The customers satisfaction passes different stages any time he or she decides to purchase: First when he needs something, he gathers the information about it, and then takes time to analyze from a different perspective and follow by the actual purchasing decision and later come the post purchasing behavior [20]. From that explanation, internet is used as the medium channel to help reduce cost of searching and at the same time improving convenience significantly and leading to product information. Satisfaction drives behavior, therefore a good understanding of it gives retails insight the need to influence online customer behavior whether in short term or long term. By this way, customer satisfaction is the leading driving force in increasing sales revenue and loyalty. The result from the study [21] indicates a strong positive relationship between the level of consumer satisfaction and the amount of product bought. So customer satisfaction is considerably taken into consideration as effective guarantee to keep customer or to build his loyalty and toward influencing their purchasing behavior. Purchasing behavior includes the process of decision-making, performance of purchasing and the product usage. In that case, customer satisfaction in e-commerce and how it is affecting consumer behavior is the mean to know your consumer expectation. High the level of personal satisfaction is, high customer behavior intention will be when purchasing particularly in retail store [22]. Based on these affirmations we propose the following hypothesis: Hypothesis (5): satisfaction increases the level of buyer intention and purchasing behavior.

Chapter 1 Introduction

1.3

The Problem of the Study


Likely started from 1990, consumer has changed their way of buying from traditional

conventional one to electronic commerce mode. This changing has a lot of implications on consumer behavior. At present, all geared toward internet usage as a new medium for acquiring product or service as means to satisfy needs and wants. Despite the increasing popularity of internet users, previous researches demonstrate the online commercial to be slow special in China [8]. A company selling its products online has to search for why people should embrace or refuse to embrace that activity. Surprisingly, China Small Medium Enterprises started contributing a lot to the Chinese GDP through E-Commerce and stimulated GDP Growth by 0.13 [23]. What can be the reason for that changing in comparison to some year ago? Earlier researches on online consumer have to lead to information confliction. One of the main motives why online consumers are risk averse to shopping online is the fundamental lack of faith or loyalty that currently exists between most companies and consumers on the internet. It is not easy for people to build up their trust in online shopping. A little is known on Chinese online customer satisfaction and how is related to their purchasing behavior.

1.4

The Objective of the Study


Corresponding to the development of the electronic commerce, there is an obvious increase

in the revenue and profitability of some of the major Web-based businesses. In order to keep such kind of growth for large businesses whereas encourage middle- and small-sized businesses to take advantage of the growth; the e-commerce industry needs to better understand their audiences. The main reason for this research is to understand how so far the e-commerce affects Chineses consumer behavior of buying especially consumer to consumer towards consumer satisfaction. From that perspective, we will measure the level of consumers satisfaction when shopping on the internet. Secondly, we will get insight to customer purchasing behavior with the various factors that influence them. The research further probes into finding the relationship between satisfaction and purchasing behavior. The related factors (independent variable) which may have direct or

Master Research Report Of University Of Electronic, Science And Technology Of China

indirect impact on consumer satisfaction to the intention to buy are as follows: Convenience: Ease of website navigation organizational structure, clear pricing and simple purchase procedure; Product Information: It is the process of acquiring the information; Satisfaction: Degree of contentment. How happy is the consumer with the shopping experience; Trust: The degree of confidence that the consumer has in the internet in general and in the reliability and sincerity of the shopping website included; Security of consumer personal information and protection of individual data; Social Characteristics: Friends and relatives influence on the consumers purchasing behavior; Perception: The process by which people (consumer) discover, and understand information he receives from external environment of the sensory receptors. It is also refers to the instant appreciation that someone has something. China is selected to test the research model because it is the biggest population, an emerging economy and the largest e-commerce market in the world, which turning to be the prospective economy hub of the world.

1.5 Scope and Limitations


The scope of the study is limited to the student (Domestic and International) of University of Electronic Science and Technology of China (U.E.S.T.C) purchasing behavior. Satisfaction variables for purchasing on the World Wide Web (www) are particularly relevant in the context of predictions made regarding electronic shopping (e-commerce) in the near future. This study will contribute to and extends our understanding of the Internet as a medium for commercial use in the C2C arena, identifying the factors which have impact on e-commerce innovation on the Chinese consumer behavior environment. There are a number of factors influencing the purchasing behavior of consumer. However, this research will try to limit these to a few in order to investigate the effect on the online consumer behavior. Within the field of consumer purchasing behavior, there are many theories and model that the study can identify: Consumers behavior differs depending on what product or service is bought.

Chapter 1 Introduction

Firms engaging in e-commerce must study and understand factors affecting the online purchasing behavior of consumers of different countries. This study is concentrated in Chengdu; capital city of Sichuan province (China).

It must be stated that time constraint poses a problem to the study due to the limited time within which the study was conducted. Due to limitations of financial and material resources, the sample size was selected to be two hundred and eighty respondent (280) out of the entire population of users of twenty thousands (20000).

1.6 Outline of the Thesis


This Thesis is outline as follows: Chapter 1: Introduction Chapter 2: Literature Review Chapter three: Methodology Chapter four: Analysis of the Results Chapter Five: Conclusions Acknowledgments References Appendix

Master Research Report Of University Of Electronic, Science And Technology Of China

Chapter 2 Literature Review


2.1 Introduction
This chapter examines the various views expressed by different authors about Electronics Commerce, it origin and definition and tries to classify it according to some characteristics. Since many years now, e-commerce has been changing the way people buy and communicate. Internet presents a firm varieties of opportunity by enlarge their market share and at the same time affecting consumer behavior. This chapter involves the study of consumers with all its features and environment, mention the consumer buying process and finally identify main factor influencing its online purchasing behavior.

2.2 Overview of e-commerce 2.2.1 Definition of E-Commerce


Electronic-Commerce mainly known as E-C is the process of conducting business by using internet as the channel. It also illustrates the procedure of selling, buying, exchanging and transferring goods and services and or information via computer network. E-Commerce can also be defined according to different perspective: Business process perspective: Talking about E-commerce, it is to engage and complete the business process electronically in such a way to replace information for physical business process [24] Communication perspective: It is the supply of goods, services, payment or information over internet or by any other electronic way. Service: E-C it is an instrument used by government to address issue concerning their need and want in order to cut service cost while improving the customer service quality and increasing the speed of service delivery. Learning: It is a teacher for online training and education in schools, universities and among businesses.

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Chapter 2 Literature Review

From another perspective, E-Commerce is the use of digital information to understand the need and want of consumers and to satisfy them by increasing the company revenues, lower cost, build and strengthen customer. To achieve these objectives, many companies today adopt electronic commerce for direct marketing, customer service and selling, online banking, corporate purchasing. Despite the increasingly benefits of E-Commerce system, managing it requires a lot of potential. Apart from adopting new technology, business process needs to be reorganized for the online activities profit maximization.

2.2.2 Brief History of Electronic Commerce


E-C applications started in the early 1970 with innovations in the form of electronic fund transfers (EFT), and where fund could be routed electronically from organization to another. However, these applications were limited to larger corporations and financial institutions then by Electronic Data Interchange (EDI). This new application helps to extend more and more new EC application followed ranging from travel reservation system to stock trading [25]. Over the next few years, more key innovation made possible the boom of E-Commerce. Data warehousing and mining were important to the process and the main vital is the invention of World Wide Web internet browser by Tim Berners-Lee (1990). By 1991, E-Commerce get access to the web, but gain popularity until security issue and modem speed significantly improved [26]. Another reason for the rapid expansion was the increasing in competition and other business pressure. Economic, legal, societal and technological factors have created a highly competitive business environment where consumers are becoming more powerful, as far as these environments can change quickly, sometimes in an unpredictable manner [25]. E-Commerce has grown faster and the figures from 2008 with 204 billion of dollars. United States E-Commerce totals sales rise 14.8% in 2010 from 144.1 billion 2009 to 165.4 billion in 2010, based on the non-adjusted estimates released by US Commerce department. A continuous flow activity of ECommerce make purchasers go online, more often than before, and from 1999, the emphasis of E-C shifted from B2C to B2B and from B2B to B2E, C-Commerce, E-Government, E-Learning and M-Commerce. From all figures pointed out, it undoubted to say that the future of ECommerce is even brighter and also, when considering the nature of technology and the internet, and it will surely continue to shift and change.

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Master Research Report Of University Of Electronic, Science And Technology Of China

2.2.3 Classification of E-Commerce according to participants


The following types are commonly distinguished by Turban, King Lee, Warkentin and Chung [26] without the additional types that researchers have identified. Business to Business: All the participants in Business to Business (B2B) e-commerce that is business or inter-organizational, information system and electronic transaction. For instance, General Electrics Trading Process Network (TPN) www.tpn.geis.com; most of Mark Spencers application involve B2B (more than 85% of E-C volume is B2B [27]. Business to Consumer (B2C): Based on retailing transactions of products or services from business to individual customers: Amazon.com (www.amazon.com). Consumer to Business (C2B): Involves consumers who use internet to sell product or service to organization in order to agree on transaction deal: (Priceline.com is well-known C2B organizer of such transactions) Consumer to Consumer: It is where consumers deal directly to other consumer: The advertisement of personal services over the internet and auction sites. Despite the increasingly evolution of numbers of internet users, e-commerce has failed to meet the forecast the nine e-commerce prediction for 2009(Adam Weinroth).Many reason can be identified as factor behind. A lot of previous researches attempt to gain insight the motivation factor for the consumer to engage in online shopping and vice-versa. Some result has demonstrated (convenience, competitive price, excitement etc) to be optimistic for the online activities, while the hindrance is hard and unsteady [28]. According to the research conducted by Sang M. Lee, Liqiang Chen [29], the result carry out the main support on the impact of the three flows construct (concentration, enjoyment and telepresence) on consumer behavior. Furthermore it founded that Telepresence had a negative impact on online consumer behavior and such finding is reported for the first time in e-commerce setting. A recent research from the angle of consumer purchasing behavior in cyberspace [30] by using Analytic Hierarchy Process (AHP) found that security of online shopping, price and commercial credit is main factors affecting buyer behavior while genders, education, level of consumers and designs of store are the secondary one. There are still some features that can have impact on the electronic buyer behavior and the next text will help to fulfill our objective.
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Chapter 2 Literature Review

2.3 Consumer Markets


Consumer market is that market mainly dominated by the large number of products or services for the purpose to satisfy consumer needs and wants and also generate profit. Building a consumer market strategy is the good approach to attain the big market share leading to sales and revenues maximization. If the aim of marketing is to meet and satisfy target customers needs and wants better than competitors, there is an eternal relevant question which company should ask and the one which help him to know his audience. How do consumers react to the marketing strategy the company might attempt to exploit? So far there is a need to know the consumer. Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences, to satisfy their needs and wants. Studying consumers provides clues for improving or introducing products or services, setting prices, devising channels, crafting messages, and developing other marketing activities. Marketers are always looking for emerging trends that suggest new marketing opportunities.

2.4 Understanding of Consumer


The key of market orientation is a customer focus. Marketers and managers must focus on the consumer feelings, thoughts and behavior for building their strategy planning. By so doing, marketers should have a broad view of the whole environment emphasis on the economic, sociocultural of consumption. Despite Mattel is the worlds largest toy company and occupies a larger market share of its toys, it still hold 16 percent and almost 8 percent market share of toys in both United States and Europe respectively. Having a large focus, it is the link between successful marketing strategy and consumer understanding. To maintain this goal, companies have to keep in touch with their customer periodically and use all alternative possibility available. Global customer marketing obliges firms to built strategies in order to fit the variation of the environment. Sometimes, what foreigners resources are capable of doing, locals firms also will find useful. Unfortunately, a lot of companies do not have those abilities. Therefore, gaining thorough, and get insight understanding of these opportunities enables company to validate the right product to be produced to the right consumer in the right place. It is true that, in deciding about which product or service one consumer will like to obtain, thoughts, feeling and behavior can influenced his choice. He can like one brand but not purchase it means that person has
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Master Research Report Of University Of Electronic, Science And Technology Of China

positive attitude toward the brand while he has the negative purchasing intention or behavior. The better way to satisfy this people is to come out with the differentiated product. [31] Product is differentiated from an economic stand point when it faces competition from products considered to be partial, not perfect, substitutes for it in the minds of consumers. From that perspective, marketer should understand both theory and the reality of it consumer. Focusing on the consumer buying behavior part, external environmental also come to play an important role.

2.5 Characteristic Affecting Individual Consumer Behavior


2.5.1 Cultural Characteristic of Consumer These factors contribute a lot to the influencing of a customers behavior. Culture can be classified as social culture and, subculture. Culture can be said to be the fundamental basis on which a persons wants and behavior can b e determined. Chinese consumer, for instance, may respond differently from Indian, Japanese, or Filipino consumers. Culture has an influence on peoples buying behavior since they have different ideology about different products at different points in time. And also certain culture has certain values which will influence the decision of a buyer. Culture is point out as the main reason of a persons wants and needs. Kotler, Armstrong [32] argue that human behavior is most of the time at the learning process, challenge with values and belief since our childhood age which values impact our behavior. Therefore a marketer should be aware of this, so as to use it as an indicator to know the taste and preference of it consumers. Subcultures as a kind of culture or behavior one acquires through a small group of people who share values and beliefs such as nationalities, religions or geographic regions. An identified subculture can serve as an important and effective market segment which can be targeted. Social class is recognized [32] as a class structure, consisting of a combination of factors which gather different types of members. It differs in dress, in speech also factors like occupation, income, age, and education, and wealth.

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Chapter 2 Literature Review

2.5.2 Psychological Characteristic of Consumer


The Psychological characteristic of consumer is mainly classified in various theories and concepts: Motivation, Perception, Learning, Memory, Belief and Attitude. Motivation: Talking about motivation, it is the main reason someone has to react or act in a particular circumstance in order to attain its objectives and which may root as basic need and want. According to Kotler, some need are biological (desire to eat and resting), and psychological such as the need for recognition, esteem or belonging. A motive is engine that drives someone to act. A lot of motivation theories were discussed [33] which theories include Freud, Maslow and Herzberg. Freud assumed the psychology forces motive peoples behavior is more unconscious so people find difficult to understand his own motivation. In other hand, Maslow argue that need is hierarchy established in such a way that the most pressing should be satisfy before the least pressing and so on. A clear example is to satisfy the physiological need before the Safety needs, social needs, esteem needs, and Self-actualization needs. Herzbergs theory emphasize on two factors: one factor causes dissatisfaction and the second one the satisfaction. He mentions the lack of dissatisfaction should minor compare to the satisfaction which must be there at any time as far as motivation is concerning for the purchasing. The marketing implication is that marketer should make sure to avoid the dissatisfaction and secondly discover the primary motivator and make it available for the consumer. Perception: It refers to our identification and interpretation of a circumstance according to our sensory knowledge. The perception is explained as the process [33] by which an individual selects, organize and interpret information input to create a meaningful picture of the world. Perception varies according to everyone, different people, different perception. People

perception is lead by three different perceptual processes: The first is selective attention. It the process adopt to figure out the most important needs among the several opportunities which facing people. The second one is the selective distortion. This is affinity or inclination to particular characteristics or to analyze information that fit our previous experience. And the last is the selective retention. It refers to the fact of keeping information to himself which support its attitudes and beliefs. Learning: learning, [34] derive from experience and consumer experiences are the heart of consumer behavior and consumers learning as adjustment and characterized by values systems, desires, needs and the previous knowledge. Proving to support that judgment, Kotler [33] explains learning as result from experience that people goes through
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Master Research Report Of University Of Electronic, Science And Technology Of China

which affect their behavior then, in the learning process, four factors need to be considered: Drives implies a strong internal stimulus pushing action while cues are minor incentive that determines when, where, and how a person responds. Suppose, you experienced a rewarding after buying a product, then your feedback toward the specific product will be reinforced positively. From there, consumer will generalize his view to experience more the product more than one. Memory: It is the process of acquiring, storing and recalling information when needed it. From the cognitive psychologist point of view, there are two types of memory: One is Short-Term Memory (STM) that is temporary repository of information where the mind keeps the information just for a period of time. Another one is the Long-Term Memory (LTM) which refers to the information you carefully store in your mind. Marketer should take into consideration that the right experience about the product or service is what consumer is keeping in his mind in order to impact his feedback positively. Beliefs and Attitudes: These play an important role in evaluation where the consumer has to assess the alternative possibility before engaging into buying. It is acquired through learning and experience. [33] The belief as a descriptive though an individual holds about something according to his knowledge. Belief becomes knowledge when the belief is true or can be proved for believing it is true. Attitude is a favorable or unfavorable personal evaluation, emotional feeling and action tendencies about some object or idea. Kotler argues that attitudes are complex to be changed because its saved energy and thought. It is crucial for marketer to study consumers beliefs and attitudes by understanding which circumstance requires acting influencing purchase decision intention.

2.6 Consumer purchasing behavior in online environment


The main objective to learn consumer behavior precisely the online consumer purchasing behavior is to identify their influential factors which will give hand to marketer in their strategy making process in order to produce goods or service according to it needs and wants. Some marketers often make a prediction about the online consumer toward the study of off-line consumer behavior because they though the two theories are almost the same. But, as internet is the new channel online consumers use to buy, obviously, it must be changed in the behavior

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Chapter 2 Literature Review

compare to the traditional way of purchasing. From the cultural aspect of online behavior, [35] consumers differ from their social class, and therefore it creates a difference in their buying behavior. He argues that higher class consumers may likely buy on the web than the lower class for the reason he can get easily access to computer and the net. On the other hand, a lower consumers class may find it difficult to get computer or surf on the net because of the cost to afford it. Another alternative, he may have the computer literacy difficulty to be controlled even though he has the computer. To Monsue, Dellaert and Ruyter [36]. talking about online consumer personality aspect, individual income has a great impact on the consumer purchasing intention. The one who has a higher household likely will have an optimistic attitude toward the online purchasing. Smith and Rupp (2003), identify age as a determinant driver for people to go for online shopping. He mentioned that older people are less seen in the web because they are less educated in term of computer literacy and in the use of computer, while young adult would. Motivation, perception, personality, attitude and emotion are the psychological facet of the online behavior. It can be identified as a process that gives consumers opportunities to ask the relevant questions before engaging into the online purchasing: If online companies offer better price than off-line, how much do I really need? Should I buy because of convenience or is there another opportunities for that product? This characteristic of consumer behavior control the whole decision process, external input and elicits the responses to buy or not. Smith and Rupp (2003) explained that, online consumer should have a good motivation for purchasing after all. It is the unique moment where great attention is to the complexity process. The online company must not only judge the economic theories part but also get insight to peoples habit towards the purchasing behavior. Reisenwit [37] also proves to support the idea by explaining the fact related to senior manager internet using. For him, more senior manager surf on the internet, the more the positive attitude is created, greater internet purchasing and higher like hood of future internet purchase.

2.7 Consumer Buying Decision Process


These basic theories explain so far helps companies particularly those whos responsible for decision and strategy making to understand their audience. It is also classifies as a process that consumer passes through in deciding to purchase [33].

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Master Research Report Of University Of Electronic, Science And Technology Of China

Problem recognition: This, start once a stimulus (internal or external) leads the consumer to be aware of his need. Hence, it becomes the marketers responsibility to search for the circumstances which push that specific need in order to develop a strategy to meet them. As recognition of needs come, consumer turn into information searching. That is where he or she looks for more facts, for him to evaluate the alternative demands. Evaluation is the process of assessing the different option concerning brand information, price and make the ultimate value choice. The opinion of rational consumer will be to target the item that encompassed a single out profit. Therefore, the marketing strategy should be to segment the market according to the most significant feature of purchaser group. Kotler explains that the evaluation stage also involves the creation of preference and the formation of purchasing intention to purchasing decisions of the most desire brand with its perpetual criterion question: from whom to buy, which quantity need to acquire and when. There is obvious fact that, every day product doesnt need a lot of decision and deliberation before buying it. When the good or service is obtain, the purchaser might experience disagreement which can depend on his further searching about other brand. From that perspective, Kotler suggests to marketer, to build belief and evaluation that will support consumer choice to the particular brand bought. Every organization which aims for sustainability, must also be anxious about the postpurchase behavior of it consumers by regularly checking up on postpurchase satisfaction, post purchase actions and postpurchase product uses.

2.8 Identified influencing factors of online consumer purchasing behavior


2.8.1 Product- Price. Price is the amount of money a buyer pays to a seller in exchange for the product or service. It relates to the economics sacrifice a purchaser should make to own something [38]. Besides the economic function, pricing influences how buyers perceive the product.When consumers have few cue for judging quality, the evaluate products/service on the basis of price [39]. However, Internet has become the new medium for acquiring good and service where consumer can gain all information such as price and product information. By the way, pricing influences whether selling the product will be profitable for the organization and especially for the e-commerce where the owner of the store is unknown. Furthermore, the price is the single element that revenue from the selling. From this perspective, when

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Chapter 2 Literature Review

purchasing online, additional cost for instance freight charges, supply time of goods might influence the consumer purchasing even though the price of the real product can be cheap. No matter what type of product you sell, the price your client will directly influence your business. Bellow is factor price and its measurement Items

Table 2-1. factor price and its measurement Items.

Factor

Measurement Items Offer better price

Price

Price of specific product influence my purchasing decision Saves money

2.8.2 Convenience According to the empirical studies finding [40], [41], the opportunity that online consumer have to buy on the web at any period of time(7 days per week, 24 hours per day), wherever they are regarded as the most obvious and important positive aspect for the e-commerce. On the other hand, Kim and Park [42] argue that, if convenience is considered as a reason for consumer to shop online, the consumer should straightforward get access to the net and decide on the behavior with shopping online. He found that the less complexity consumer access net, the more careful decision he has to make to enter and to search for information. Saving time is mentioned as attribute for convenient when consumers purchasing online. There is no need for him to leave home for brick and motar store before satisfying his needs and want. Hence, consumer may gain advantage from the purchasing process being faster on online than that the off-line market as a result of the rapidity of information searching and the transaction process [43].

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Master Research Report Of University Of Electronic, Science And Technology Of China Table 2-2 factor convenient and its measurement items

Factor

Measurement Items. Saving time

Convenience

Purchase at any time Change order at any time before completing the transaction Less effort

2.8.3 Trust Since the internet has become the new medium for the customer to purchase online, a lot of studies have developed an interest due to the special features distinguishing the business deal in electronic market to the traditional business style. By so doing, online companies must cultivate trust and equity brand in order to allow consumer to fulfill their purchasing process on the website. It is so important for those engage in electronic commerce [44]. From the same view, trust alleviates the risk bearing that occur when the store is unknown, the quality of the product is unknown and the settlement performance is unknown [45]. La popularization of online business opened a new vision of trust in economy to new challenges while increasing the value of trust, and desire to understand customer decision to trust [46] . Turban et al (2001) constructed a model to explain what trust is mean from source of purchasing on the web. From this scale version figure A trust model for consumer internet shopping (Lee, Matthew K.O and Efraim Turban

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Chapter 2 Literature Review

Other Factors Trustworthiness of Internet Merchant - Ability - Integrity - Benevolence Trustworthiness of Internet Shopping Medium - Technical competence - Reliability - Medium understanding

Consumer Trust in Internet Shopping (CTIS)

Contextual Factors - Effectiveness of third party certification - Effectiveness of security Infrastructure


Figure 2-1 Matthew K. O. Lee and Efraim Turban

Individual Trust Propensity

International Journal of Electronic Commerce / fall 2001, Vol. 6, No. 1, pp. 7591. High online traffic implies more opportunities for online advertising, promotion and sponsorship. The e-vendors companies must prove to their customer their ability to manage and support during and after they purchase is done. From that perspective, it will generate a high probability for the consumer to engage in trust related to internet behavior like buying, sharing information, ideas. By the work did [48] , interpersonal trust and platform credibility are the main factors which differ effective online communities from ineffective one and provide an advertiser an opportunities to discover with a high levels of platform credibility(trust) in order to post their advertising. Surely, high online traffic implies chance for e-marketing strategy. Table below shows the factor trust and its measurement Items

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Master Research Report Of University Of Electronic, Science And Technology Of China Table 2-3 factor trust and its measurement items

Factor

Measurement Items Online vendor is benevolent

Trust

Protection of my personal information E-vendor do so in accordance with what the claim E-vendor fulfill his promise

2.8.4 Product availability Product availability helps to know when a product is likely to be send-off. The product availability can be defined as present and ready product hand that might be found at any period of time. An online consumer, who gets access to the product whenever he needs it, will become loyal to that specific product. We can also derived availability from accessibility which generally used to describe the degree to which a product is available to as a lot of consumer as possible. One of the most crucial annoyed things is to spent a lot of time for searching for a product and at the end you just receive a message this product is no more available. Nowadays and from the evolution of the technology, the electronics gadget seem to be the one of the most popular product that a consumer can easily access online and every from entertainment to education, and from bureau to play. A part from computer which is also changing all his feature, a close friend like smart phone (made of computer, camera, telephone) try to make life easier for online consumer. Table below shows the factor availability and its measurement items.
Table 2-4 factor availability and its measurement Items

Factor

measurement Items Product available in my shopping area

Availability

Large number of online product sold More choice

2.8.5 Social Characteristics The social group is divided into three categories called reference group, family and social role and status. This first factor is refers to a reference groups which have direct or indirect effect on customer perception. It is the group to which someone relates or aspires to relate him
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Chapter 2 Literature Review

or herself to. Reference group may influence people in various ways: by exposing a person to novel behavior, affect people attitude and self-concept, then form a pressure of confirmation. Another facet of social characteristics is the importance of family members, friend, and neighbors in people behavior. For the online companies where social distinguish factor is strongly influenced, they must identify the way to target and persuade opinion holder on their information sharing. In Kotler point of view [33],he argue that: Family is the most important consumer buying organization in society, and family members constitute the most influential primary reference group further more mentions the effect of role and statutes in the person life. Kotler, found that each person position is recognized in term of role and status. So far people choice about the product according to that. And surely, the concept of mianzi or face require everyone to follow it in the name of social norm and that is imperative in the Chinese culture [33]. In the perception of online consumers, reference group is made of virtual communities especially discussing group on the website (chat room, electronic bulletin board, news group). [49] The opportunity for the client to read the opinions and the experience from the web which may affect their purchasing perception. We understand that social characteristics concerned about the information based on the relationship each one has about another and or as part of a group. Thus a consumer may also decide to follow the group consciously or subconsciously generally. Table below shows social characteristics and its measurement items.
Table 2-5 factor social characteristics and its measurement items

Factor Social Characteristics

Measurement Items Family affect my purchasing decision Friends affect my purchasing decision Feed back of purchased product affect my purchasing decision

2.8.6 Experience using internet The American Heritage Dictionary defines Experience as: Active participation in events or activities, leading to the accumulation of knowledge or skill. Based on that, it is not part of good experience when people decide to surf on the net, then the webpage takes a long time to be load, or the website contains a lot of computer codes. So far, the bad experience on the web can negatively affect the online customer trust. We strongly believe that internet using experience has
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Master Research Report Of University Of Electronic, Science And Technology Of China

to have impact on the factor of trustworthiness. Fewer consumers have internet experience, less he or she may think there is a strong regulation protecting his or her confidence assessment. In the previous research, William H. Dutton and Adrian Shepherd [50] found that there is a need to improve the trustworthiness of the internet especially in the cyber and [51] the importance of consumers experience in using internet. Their study was based on the comparison of consumer preference for online and off-line purchasing of home mortgage across the three stage of purchasing. Some related part of finding from the research state that there is more significant preference of off-line purchase over that of online. However, the consumer intention for online medium purchasing tends to increase mainly in the pre and the post stage if he has a favorable internet experience. Hence, when try to find the factor influencing online consumers purchasing behavior; firms should take into consideration the judicious impact of consumers internet experience. 2.8.7 Satisfaction The product is a critical element of marketing mix, since it is through the product or service that companies survive and grow [52]. In general, the term product is defined as a thing procedure by effort or labor. In marketing, Kotler, P; Armstrong, G; Brown L;and Adam ,S [33 ] define product as anything that can be offered to a market that might satisfy a want or a need. From the marketing view, the core element of this definition is the satisfaction of individual or business objective. The online business should make sure that the type of the product consumer receive it fit his expectation in term of price, quality, security information, availability. By the rapid growing of e-commerce activities, lead to competitive market space, customer satisfaction or product satisfaction has been as main indicator for the business strategy. Table below shows factor satisfaction and its measurement items.
Table 2-6 factor satisfaction and its measurement items

Factor

Measurement items

Satisfaction in term of trust Satisfaction Satisfaction with the convenience Satisfaction with kind of product Satisfaction with product availability General Satisfaction
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Chapter 2 Literature Review

2.8.8 Purchasing Behavior Consumer purchasing behavior can be perceive as a process in which consumers react after acquiring a good or service the like. Organization today, works in an increasingly competitive market environment. As far ecommerce is concerned, one of the key to built effective customer relationship is the deep understanding of the consumer purchasing behavior. Table below shows purchasing behavior and its measurement items.
Table 2-7 factor purchasing behavior and its measurement items

Factor Purchasing Behavior

Measurement Items. I will purchase online Intention to buy online I think buy online is attractive

2.8.9 Demography Demography is the study of human population statistic including size, age, sex, race, location, income, education. These types of demographic profile of purchasers highly influence the buying online decision-making [53], [54]. In term of education, the future generation of adult is acquiring more schooling than the present generation [55]. According to Xie Guodong [56] The fundamental aim of adult education is to enable all citizens with the ability to live, work and labor to realize all-round development through developing their personal resources, improving their knowledge and skills and optimizing their personality in accordance with different needs in life, work and learning. Generally, this challenge started as a result from the shifting employment, needs of industry, changing social values. In another way, knowing the demography characteristic of consumer can help the manager of business strategic planning to come out of the best decision. If we emphasize in sex, there is some undeniable demographic pattern to buy such as razor, purchased usually by men. Men are more interesting in electronic work, financial service while female prefer to spend their time on food, beverage and clothing. By identify consumer demographic characteristic and understanding their relative significant, ebusiness are searching for a way to meet their customer expectation.
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2.9 Conclusion
A part from the Electronic Commerce review concerning its origin and its classifications, the rest of our review of literature is based on different researchers who wrote and discuss issues and theories related to consumer behavior. We have found that an online consumer behavior has been an emerging research field with a huge number all over coming. We also notice that, while a lot of researchers draw a direct conclusion from consumer behavior study and applied directly to the online consumer behavior, few authors make the online consumer behavior entirely different from that of off-line in term of the factor influencing them. Therefore, we review the process consumer goes through before acquiring a good or service which also will be meaningful to get insight into the impact of e-commerce innovation on the Chinese purchasing behavior by figuring out the relevant factors.

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Chapter 3 Methodology

Chapter 3 Methodology
3.1 Introduction
The research methodology describes the methods, techniques and procedures that were followed in satisfying the research objectives, hypothesis and the study problem. This section describes how the research was organized and discusses how data for the study was conducted and it also discusses the statistical instrument used for the collection, data processing and analysis.

3.2 Research Design


A cross-sectional research which is employing exploratory technique that is using: 3.2.1.1.1 Desktop study (literature review), published and unpublished.

3.2.1.1.2 Experimental survey. The descriptive study employs both qualitative and quantitative methods of data collection by using formulated objectives and hypothesis of the study. The methods used were: 1) 2) Questionnaire Operational method.

3.3

Population
The target population for this study is the following: Students from University of Electronic

Science and Technology of China (UESTC). These students comprise of Chinese students and International students mostly from Africa, Asia, Pakistan, UK, USA etc.

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3.4

Sample and Sampling procedure


The sample made of two hundred and fifty-two (252) students was used. 64.3% are Chinese

students whiles the remaining 35.7% were International student. The respondents are students who are mainly online shoppers, highly educated in various courses (Management Science and E-Commerce, Finance and Economy, Electrical and Electronic Engineering, Macro-Electronic Engineering) with high incomes. Many of the respondents had previous experience of using the internet. Two hundred and eighty (280) questionnaires were distributed and two hundred and fifty-two(252) representing 90% were recovered, this includes in this study, 42.5% females and 57.5% males students with about 61.5% between ages of 19-24 years and 27.8% between 20-30 years and the rest are either below 18 years or above 31 years. The information was collected by means of self-administered survey with personal supervision and by technical assistant. A formal interview also was done on respondents who find it difficult to understand, or busy to fill the questionnaire.

3.5

Demography

The following demographic features such as Age, Gender and Education were used as an information background for the respondents in the research.

3.6

Sources of Data

To obtain adequate information of the study, both primary and secondary data were collected. Most of the data collected were through questionnaire with various categories of respondents from the participating institutions.

3.7

Instrument for the data collection.


The research tools used in this research work include structured questionnaires.

Questionnaire for this purpose were designed in accordance with the research objective and hypothesis. Questionnaires both open and close-ended questions, and multiple choices were designed to solicit information. Another tool employed was the Statistical Package of Science Solution (SPSS) version18.0.
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Chapter 3 Methodology

3.8

Data analysis

The data collected was coded and by the Statistical Package of Science Solution (SPSS). Data was analyzed and interpreted by using Hypothetic analysis techniques and Path analysis. Analysis on reliability using Alpha coefficient were used to check the internal consistency. Frequency tables on Gender, Age, Educational background and Nationality were used. To check the relationship between the selected variables, correlation, t-test and multiple regressions were also used.

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Chapter 4 Analysis of Results


4.1 Introduction
The main focus of this chapter is to bring out the analysis of the study and conclusion from the conducted research and the various data gathered that has been presented in the previous chapter in respect to the impact of e-commerce innovation on the Chinese purchasing behavior and find out the relationship between the identify factor to purchasing behavior through the satisfaction variable.

4.2 Results on Reliability of Data


Analyzing on the reliability of a questionnaire using, (Cronbachs) Alpha () a coefficient to check internal consistency or reliability. Source: Appendix A.
Table 4.1 shows Reliability of the questionnaire using Alpha Coefficient.

Variables Convenient Product Information Trust Social Characteristics Satisfaction

Cronbachs () coefficient 0.882 0.883 0.886 0.885 0.882

To check the consistency or the reliability, all the variables had Alpha more than (=0.6). Therefore the reliability of the questionnaire in terms of percentage is (=0.882) approximately 88.2%. Source: Appendix A

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Chapter 4 Analysis of Results

4.3 Path Analysis


The path analysis was done using SPSS version 18.0 to verify the research model and the research hypothesis used. 0.676 Convenience or ease of

Product Information

0.534 Satisfaction Purchasing behavior

Social Characteristics

0.708 0.697

Trust 0.709 Experience using internet


Figure 4.1 from Appendix B

The data obtained from the respondents who completed the questionnaires supported almost all the hypothesis formulated H1, H2, H3, H4, H5 were supported by the results of the data analysis using the regression model path analysis. The accepted hypothesis used was 95% level of significance. Convenience, product information (product price, product availability) and trust all influence the satisfaction of the online shoppers with a website. Experience of network influence trust per the results obtained. The satisfaction of online consumers with a website influences their buying behavior. Invariably, trust does not have any direct influence over the purchasing behavior according to the regression model results. Source: SPSS output appendix C and D

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Master Research Report Of University Of Electronic, Science And Technology Of China

4.4 Discussion
The Hypotheses H1, H2, H3, H4, and H5 were supported by the analysis of the completed questionnaires. The results which interpret that the purchasing behaviors of online shoppers or consumers are influenced by satisfaction were justified. The result also showed that, there is a strong correlation between the experience i.e. long time use of the internet and satisfaction according to the regression analysis. I discovered that, trust did not have a definite influence on the purchasing behavior of shoppers. This might be a characteristic peculiar to most decision taken by online shoppers. This study was done on University students (both home/international) who are frequent users of the internet and shop online than most people and trust might not be their priority. Product Information also had a positive influence on the satisfaction of online shoppers. I may say, here it also implies that consumers expect to have complete and up to date product specification (price, type, guarantee period, etc) to enable consumers to compare different products and different brands. Even though, satisfaction in terms of security of information of consumers was predicted to be one of the influential variables, my recommendation concerns relating to internet and credit card security, spam, identity fraud and the misuse of personal data. To test for the statistical significant differences between the variable means, the t-test was performed. The independent variables used are product prices, convenience, trust, product availability, and social characteristics in order to observe the effect on the dependent variable, general satisfaction. From the SPSS output appendix E, the convenience, social characteristics, product availability, product price and trust, all have probability error less than 0.5. This is statistically significant at less than 0.005. A Pearson product-moment correlation was run to determine the relationship between the satisfaction as related to purchasing behavior of internet users and the independent variable which are convenience, product information, trust, social characteristics. The data showed no violation of normality, linearity. From the data output, there is a significant positive relationship (correlation) between the General Satisfaction and convenience, Social Characteristic, product availability, product price and trust since the correlation coefficient r are all positive appendix F.

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However, the absolute value of r is not close to 1. This indicates somewhat weak correlation. Therefore, from the result, it could be concluded that there is a significant correlation between the general satisfaction which corresponds to purchasing behavior of the Chinese and convenience, social characteristics, product availability, product price and trust the correlation is weak. In conclusion, the finding has shown that a lot of Chinese people are been seen in the net for the purpose to make online shopping and e-commerce activities is taking a large portion in the Chinese economic which progressively contributing to Chinese GDP.

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Master Research Report Of University Of Electronic, Science And Technology Of China

Chapter 5: Conclusion
This chapter presents a summary of findings, Theoretical and Practical implications drawn from the results obtained. It also provides some recommendations for future research.

5.1 Concluding Remarks


Studying online consumer purchasing behavior is not a simple structure. This research investigates the impact of electronic commerce innovation on the Chinese purchasing behavior: C to C and further searches for the relationship between satisfaction and purchasing behavior of Chinese. Student from University of Electronic Science and Technology of China both National and International were our population used for the survey and therefore, the demography characteristic is exploited as background for the research purpose. Firstly, the finding shows a strong correlation between the experience of using internet and trust, however there is no direct effect of trust on purchasing behavior from the regression output. We can assume that factor trust is not the main aim of the online buyers. Not only there is a positively influence of product information on the satisfaction of the e-shoppers but also the result shows that, the correlation between general satisfaction related to purchasing behavior and convenience was noteworthy. As compare to social characteristic factor which is the highest, trust, convenience and product information have the lower influence on the respondents purchasing behavior. In general view, the relationship between all variable proposed in our model is significant at a different level which implies differences in the purchasing behavior towards the factors. From all consideration, we respond to the objective of the study hence conclude that, increasing numbers of Chinese are adopting online purchasing. E-commerce is increasingly becoming one of the important contributions to the Chinese economy. The decisionmaking culture of purchasing online in China may be different from other countries.

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Chapter 5 Conclusion

5.2 Future Work


From the model and research variables, the ease of or convenience, trust, social characteristics and experience using internet influence the satisfaction of Chinese People using internet for purchasing. In addition, product prices, product quality and product availability the users are satisfied. Within the trend of increasing online purchasing behavior, I wish to recommend that education in form of product information like advertisement and the use of internet should be easily accessed. It will also be of interest to find out how these identify factors will impact the online consumer behavior when buying a specific type of product.

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Master Research Report Of University Of Electronic, Science And Technology Of China

Acknowledgment
When all is said and done, the only step left is the writing of this acknowledgment. In the first place I would like to express my profound gratitude to the Almighty God for his assistance and faithfulness since I stepped to China to pursue my academic endeavor. By his grace, I encountered a group of extraordinary people that have given me advice, guidance and support to complete this research. I would like to thank, all those who have contributed in diverse ways to help me complete my education and the drafting of this research report. I will always be personally indebted to them. My deep appreciation goes to Dr Jiaming; my course adviser for his supervision, advice, and guidance from the very early stage of this research as well as giving me extraordinary experiences throughout the work and also provides me the statistical tool for the analysis. I thank the entire faculty of School of Management Science; a world class, intellectual satisfying and well-rounded education that was vital for the thesis. The following Professors and Doctors; Kou Gang, Liu Bo, Feng Yi, Xiao Wen and Tang Qi, Peng Yi, Lei Lan and Xu Xuelei, Ni Debing, Li Yao, He Zheng, Shao Peiji and Fang Jiaming have contributed a lot by their rich teaching skills which gave me enough for this research report. It is my pleasure to thank also the Course Coordinator; Mme Shen Ruichen for her support during my education and my questionnaire distribution period. I am much indebted to Mr. Okoampa for his valuable advice, support which has been tremendous and unwavering for the realization of this research. I would also acknowledge Mr. Shem for his willingness to share his valuable thoughts with me which was fruitful for shaping up my ideas and research. I also have to thank my colleagues at UESTC, who perpetually supported me; they are Paulette, Evelyne, Patern, Melly, Bayassa and my entire classmates. I also acknowledge Kingsford who spend his precious time to read through my research report and the design aspect for me. Here, Mr Armah and my roommate Thai deserve a grateful thank for their assistance in the realization of this thesis. My special thanks go to my friend; Achill, without him I might not have come to China. My
36

Acknowledgment

sincere thanks go to Brice for his advice and support before and during my study. I cannot help to thank Murielle, who contributed in diverse ways to encourage me throughout my studies. I thank the CIFC worship team which consists of Janice, Nii, Evelyn, Gordon, Anna and Marguerite for their dedication to Gods work. Where would I be without my family? De profundis of my heart, my father; Eklu Gbongli and my mother Amavi, deserve special acknowledgement for their inseparable support and prayers. My uncle Monkpoh, my sisters Therese and her husband Joe, Evelyn, my brother Paul and his wife Kerstin, my cousin Noellie and her husband Eusebe, for financial, spiritual and moral assistance. Last but not least, I want to thank pastors and Catholic fathers who supported me spiritually in diverse way. They are Abbe Antoine, Da Mamam, Adjagbehoun, Jules, Josua, Fofo etc. De facto, I owe a lot of people gratitude who have equally contributed to my training from TOGO to CHINA whose name I have not mentioned. To all such people, I still remain grateful. May the peace of Christ Jesus be with you all!

Samuel Komlan Gbongli

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Master Research Report Of University Of Electronic, Science And Technology Of China

References
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model in B-to-C e-commerce: A conceptual framework and content analyses of academia/ practitioner perspectives, 2004 [17] Paul M. Herr, Frank R. Kardes and John Kim, Effect of Word of Mouth and Product Attitude Information on Persuasion: An Accessibility Diagnosticity Perspective, Journal of Consumer Research 17 (March 1991) pp. 454-462 [18] Kangis, P A. Rankin, K, Interactive Service: How to identify and Target the New Markets, Journal of Marketing Practice: Applied Marketing Science, vol. 2, no3, 1996, pp.44-67 [19] Cronin, J.J. Brady, M.K. Hult, GTM, Assessing the effect of quality, value and customer satisfaction on consumer behavioral intentions in service environment, Journal of Relating, vol 76, 2000, pp.193-218. [20] Kotler Phillip, Marketing Management: Analysis, Planning, Implementation and ControL, Prentice hall, Englewood cliffs. NJ., 1997 [21] Timo Koivumaki, Customer Satisfaction and Purchasing Behavior in a web-Based Shopping Environment. Journal Electronic Market Vol.11 Issue 3(12), 2001 pp 186-192 [22] Suhaimi, Ainul Nadzhirah, The effect of Personal Satisfaction on Customers Purchasing Behavior in Retail Pharmacies. 2010 [23] China Small Medium Enterprises report, 2009 on December 23th [24] Weill P, and M.R Vitale, Place to Place Migrating to E-Business Models. Boston: Havard Business School Press, 2001 [25] Efraim Turban, David King, Jae Lee, Dennis Viehland, Electronic Commerce: A Managerial Perspective 3rd Edition. 2004, p.8 [26] Turban.King, Lee, Warkentin and Chun, Electronic Commerce: A Managerial Perspective. International Edition, New Jersey Pearson Education Inc., 2002 [27] Cunningham, M.S., B2B How to Build a Profitable E-Commerce Strategy. Cambridge: Persus Pub, 2001. [28] Doolin, B; Dillon, S: Thompson, F. and Corner, J.L., Perceived Risk, the Internet Shopping Experience and Online Purchasing Behavior: A New Zealand Perspective. Journal of Global Information Management, 13 (12), 2005, pp 66-88.
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Master Research Report Of University Of Electronic, Science And Technology Of China

[29] Sang M. Lee, Liqiang Chen, The impact of flow on online consumer behavior. Journal of Computer Information Systems, 2010 [30] Li Guo, A Research on influencing Factors of consumer purchasing behavior in cyberspace. International Journal of Marketing Studies vol.3 no1 August, 2011. [31] Velturo, Christopher, Differentiated Products (December 29, 2008). Issues in Competition Law & Policy, august 2009, pp.485-513, American Bar Association. [32] Armstrong, G. and Kotler, Ph., Marketing: An Introduction. 8th, Ed. Pearson, Prentice-Hall. Upper Saddle River, New Jersey, NJ., 2007 [33] Kotler,P. Armstrong G; Brown L and Adam S., Marketing 7th edition. Pearson Education Autralia/ Prentice Hall, 2006 [34] Eric A., Linda P., George Z., Consumers 1st Edition. McGraw Hill, Boston Burr Ridge, II Dubuque, IA Madison, WI New York, 2002. [35] Smith, A.D., Rupp, W.T., Strategic online customer decision making: leveraging the transformational power of the Internet. Journal of Consumer Marketing, 27(6), 2003, pp.418-432. [36] Monsuwe, P.T. Dellaert, C.G.B Ruyter, K. What drives consumers to shop online? A literature review. International journal of Service Industry Management, 2004. [37] Reisenwitz, T., Rajesh, I., Kuhlmeier, D.B., Eastman, J.K.,The elderlys internet usage: An updated look. Journal of Consumer Marketing, 24(7), 2007, pp.406-418 [38] Baerden, Ingram and Laforget, Marketing: principle and Perspectives. Burr.Ridge Richard Irwin, 1995 [39] Monroe K., Buyers Subjective Perceptions of Price. Journal of Marketing Research, Feb. 1997 pp.70-80 [40] Jarvenpa, SL and Tood, PA, Consumer Reactions to Electronic Shopping on the world Wide Web. International Journal Electronic commerce, vol. no2 1996-1997, pp.59-88 [41] Mc kinney LN,Predicting Online Purchase Intentions for Clothing products. Eur.J.Mark 38(7), 2004, 883-897 [42] Kim, S-Y. and Park, S.Y., Influencing factors of purchase intention through e-commerce. Journal of Consumer Studies, Vol. 10, No. 3, 1999, pp.4566. [43] Wigand, RT and Benjamin, RT, Electronic commerce: Effects on Electronic Markets. Journal of Computer-Mediated Communication, vol.1 no.3, Dec.1995.

[44] Keen, Balance, Chan and Schrump, E-Commerce Relationship: Trust by Design. Prentice
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Hall, Englewood Cliffs New Jersey, 1999 [45] Tan, Y. H and Toem, W., Toward a Generic Model of Trust E-Commerce. International Journal of Electronic Markets, vol.5 no2, 2001, pp.61-74. [46] McKnight, D. H. and Chervany, N. L., What Trust Means in e-commerce Customer Relationships: An Interdisciplinary Conceptual Typology. International Journal of Electronic Commerce 6(2), fev 2001, pp 3559. [47] Efraim Turban, David King, Jae Lee, Dennis Viehland, Electronic Commerce: A Managerial Perspective 3rd Edition, 2004, p.20 [48] Kineta Hung, Stella Yiyanli and David K. Tse, Interpersonal Trust and Platform Credibility in a Chinese Multibrand Online Community: Effects on Brand Variety Seeking and Time Spent. Journal of Advertising, vol.40 no.3 (fall2011), pp.99-112 [49] Christopher D. and Huarng S.A., Planning an Effective Internet Retail Store. Marketing Intelligence and planning 21:4, 2003, pp 230-238 [50] William H. Dutton and Adrian Shepherd, Trust in the Internet: The Social Dynamics of an Experience Technology University of Oxford - Oxford Internet Institute, October 1, 2003. [51] Ruud T. Frambach, Henk C.A. Roest Trichy V. Krishnan The impact of consumer Internet experience on channel preference and usage intentions across the different stages of the buying process Journal of Interactive Marketing Volume 21, Issue 2, spring 2007, pp 2641. [52] Peter J.P. and Donnely Jr, Marketing Management: Knowledge and Skills 4th Edition, 1995 [53] Hashim and Ghani ; E.K and SAID, Does Consumers Demographic Profile Influence Online Shopping? An Examination Using Fishbeins Theory. Canadian Social Science, vol.5 no.6, 2005,pp19-24 [54] Lieberman, Y and Stashevsky,S, Determination of online Shopping: Examination of an Early-Stage Online Market. Canadian Journal of Administrative Sciences, Vol.26 no.4, 2009, pp 316-325 [55] Fabian Linden, Per Capita-Is. Across the Board, June 1980, pp.65-69 [56] Xie Guodong, Secretary General of the Chinese Adult Education Association (CAEA). Journal Adult Education 60/2003www.iiz-dvv.de/index.php?article_id=3568

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Master Research Report Of University Of Electronic, Science And Technology Of China

Appendix
Appendix A
VARIABLES AND CRONBACH COEFFICIENT Cronbachs Alpha Coefficient I think online companies offer better price than off-line. 0.881 I think the price of a specific product or item I buy online influence 0.883 my purchasing decision very much. Purchasing online saves me money. 0.886 Product Price Cronbachs Alpha Coefficient Purchasing on the internet saves me time. 0.884 I can buy things online anytime I wish. 0.883 When ordering online, I can change my order several times before 0.883 completing the transaction. I think purchasing online is convenient. 0.881 Convenience Cronbachs Alpha Coefficient The vendor from whom I buy things online is benevolent. 0.885 The vendor from whom I buy things online has the capability to 0.887 protect my personal information. The companies selling product online do so in accordance with what 0.889 they claim. The vendor from whom I buy things online will fulfill his promise. 0.885 Trust Cronbachs Alpha Coefficient Some of the products I purchase online are not available in my 0.883 shopping area. The number of things sold on online is much larger than that of off- 0.884 line. I have more choices online than offline for a specific product. 0.885 Product Availability

42

Appendix

Cronbachs Alpha Coefficient The opinions and experiences of my family affect my purchasing 0.888 decision. The opinions and experiences of my friends affect my purchasing 0.885 decision. The feedback and evaluation of a product purchased online affects 0.882 my purchasing decision. Social Characteristics Cronbachs Alpha Coefficient 0.879 0.879 0.882

Purchasing Behavior I will purchase things online. I intend to buy things online. I think buying online is attractive.

Cronbachs Alpha Coefficient Are you satisfied with the trust that you have for the online 0.888 companies? Are you satisfied with convenient or ease of using the internet? 0.885 Are you satisfied with the kind of product that you receive from 0.879 your online companies? Are you satisfied with the product availability with the companies 0.879 you buy from? Generally, are you satisfied with the frequency, quality, pricing, 0.879 flexibility and security of information? Satisfaction

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Master Research Report Of University Of Electronic, Science And Technology Of China

Appendix B
Model Summary for Path analysis

Model 1 2 3 4 5

R .534a .676 .708


b

R Square .285 .457 .486 .502 .502

Adjusted R Square .276 .443 .467 .477 .475

Std. Error of the Estimate .823 .722 .706 .700 .701

.697c
d e

.709

Appendix C
Regression under 95% significant level of the formulated hypothesis

Change Statistics Model 1 2 3 4 5 R Square Change .285 .172 .030 .015 .001 F Change 32.955 25.789 4.692 2.436 .248 df1 3 3 3 3 1 df2 248 245 242 239 238 Sig. F Change .000 .000 .003 .065 .619

44

Appendix

Appendix D
Analysis Of Variance (ANOVA) in support of the regression DATA

Model 1 Regression Residual Total 2 Regression Residual Total 3 Regression Residual Total 4 Regression Residual Total 5 Regression Residual Total

Sum of Squares 66.900 167.815 234.714 107.174 127.540 234.714 114.184 120.530 234.714 117.760 116.954 234.714 117.882 116.832 234.714

df 3 248 251 6 245 251 9 242 251 12 239 251 13 238 251

Mean Square 22.300 .677

F 32.955

Sig. .000a

17.862 .521 12.687 .498 9.813 .489 9.068 .491

34.313

.000b

25.473

.000c

20.054

.000d

18.472

.000e

ANOVA under 95% significant level of the formulated hypothesis.

45

Master Research Report Of University Of Electronic, Science And Technology Of China

Appendix E:
t- value table

Convenience

Coefficients a Standardiz ed Unstandardized Coefficient Coefficients s B Std. Error .225 .053 .051 .054 Beta -.017 .056 .207 t 4.008 -.292 .929 3.494 Sig. .000 .771 .354 .001

95.0% Confidence Interval for B Lower Upper Bound Bound .460 -.120 -.053 .082 1.347 .089 .148 .295

1 (Constant) Purchasing on the internet saves me time I can buy things online anytime i wish When ordering online, i can change my order several times before completing the transactions I think purchasing online is convienient

.904 -.016 .047 .188

.498

.060

.500

8.327

.000

.380

.616

a. Dependent Variable: Generally are you satisfied with the Frequency, Quality, Pricing, Flexibiliy and Security of Information?

46

Appendix

Product Price

1(Constant) i think online companies offer better price than offline I think the price of a .234 .064 .229 specific product or Item I buy online influence my purchasing decision very much Purchasing online .154 .063 .147 saves me money a. Dependent Variable: Generally are you satisfied with the and Security of Information?

Unstandardized Standardized Coefficients Coefficients Std. B Error Beta 1.168 .259 .287 .062 .295

4.505 4.620

95.0% Confidence Sig. Interval for B Lower Upper Bound Bound .000 .657 1.679 .000 .165 .409

3.636

.000

.107

.361

2.461

.015

.031

.278

Frequency, Quality, Pricing, Flexibiliy

47

Master Research Report Of University Of Electronic, Science And Technology Of China

Trust

Coefficients a Standardiz ed Unstandardized Coefficient Coefficients s B 2.219 .341 Std. Error .264 .071 Beta .315

(Constant) The vender from whom i buy things online is benevolent The vender from whom i buy things online has the capability to protect my personal information The Companies selling product online do so in accordance with what they claim

8.396 4.831

95.0% Confidence Sig. Interval for B Upper Lower Boun Bound d .000 1.698 2.739 .000 .202 .481

.015

.063

.016

.236

.814

-.109

.139

-.115

.075

-.108 -1.544

.124

-.262

.032

The vender from .194 .067 .208 2.883 .004 .061 .326 whom i buy things online would fulfill his promise a. Dependent Variable: Generally are you satisfied with the Frequency, Quality, Pricing, Flexibility and Security of Information?

48

Appendix

Coefficientsa Product Availability Unstandardized Coefficients B Std. Error 1.510 .246 .194 .054 Standardized Coefficients Beta .214 6.145 3.559 t

(Constant) Some of the products i purchase online are not available in my shopping area

95.0% Confidence Sig. Interval for B Lower Upper Bound Bound .000 1.026 1.994 .000 .087 .301

The number of things sold .182 .055 .211 3.301 .001 .074 .291 online is much larger than that off-line I have more choices .204 .062 .212 3.273 .001 .081 .327 online than off-line for a specific product a. Dependent Variable: Generally are you satisfied with the Frequency, Quality, Pricing, Flexibility and Security of Information?

Product Price I think online companies offer better price than off-line. .462 I think the price of a specific product or item I buy online influence my purchasing .465 decision very much. Purchasing online saves me money. .341 Dependent SATISFACTION

Convenience Purchasing on the internet saves me time. .328

I can buy things online anytime I wish. .375 When ordering online, I can change my order several times before completing the .453 transaction. I think purchasing online is convenient. Dependent SATISFACTION .610

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Master Research Report Of University Of Electronic, Science And Technology Of China

Trust The vendor from whom I buy things online is benevolent.

r .341

The vendor from whom I buy things online has the capability to protect my .195 personal information. The companies selling product online do so in accordance with what they claim. The vendor from whom I buy things online will fulfill his promise. Dependent: SATISFACTION Product Availability Some of the products I purchase online are not available in my shopping area. The number of things sold on online is much larger than that of off-line. I have more choices online than offline for a specific product. Dependent: SATISFACTION .354 .376 .385 r .099 .238

Social Characteristics The opinions and experiences of my family affect my purchasing decision. The opinions and experiences of my friends affect my purchasing decision. .201 .279

The feedback and evaluation of a product purchased online affects my purchasing .435 decision. Dependent: SATISFACTION r= PEARSON CORRELATION COEFFICIENT.

50

Appendix

Appendix F
CORRELATION - Descriptive Statistic Product Price I think online companies offer better price than off-line. Mean 3.67 Std. Deviation 0.989 0.942 N 252 252

I think the price of a specific product or item I buy online influence 3.53 my purchasing decision very much. Purchasing online saves me money. 3.58

0.94

252

Convenience Purchasing on the internet saves me time. I can buy things online anytime I wish.

Mean 3.88 3.61

Std. Deviation N 1.062 1.143 1.061 252 252 252

When ordering online, I can change my order several times before 3.60 completing the transaction. I think purchasing online is convenient. 3.82

0.972

252

Trust The vendor from whom I buy things online is benevolent.

Mean 3.11

Std. Deviation 0.83 1.056

N 252 252

The vendor from whom I buy things online has the capability to 3.07 protect my personal information. The companies selling product online do so in accordance with what 3.13 they claim. The vendor from whom I buy things online will fulfill his promise. 3.25

0.909

252

1.037

252

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Master Research Report Of University Of Electronic, Science And Technology Of China

Product Availability

Mean

Std. Deviation 1.069

N 252

Some of the products I purchase online are not available in my 3.51 shopping area. The number of things sold on online is much larger than that of off- 3.48 line. I have more choices online than offline for a specific product. 3.78

1.117

252

1.004

252

Social Characteristics

Mean

Std. Deviation 1.080

N 252

The opinions and experiences of my family affect my purchasing 3.34 decision. The opinions and experiences of my friends affect my purchasing 3.52 decision. The feedback and evaluation of a product purchased online affects 3.76 my purchasing decision.

0.947

252

0.949

252

Purchasing Behavior I will purchase things online. I intend to buy things online. I think buying online is attractive.

Mean 3.66 3.60 3.60

Std. Deviation 1.023 0.962 0.962

N 252 252 252

52

Appendix

Satisfaction

Mean

Std. Deviation 1.080

N 252

Are you satisfied with the trust that you have for the online 3.34 companies? Are you satisfied with convenient or ease of using the internet? 3.52

0.947 1.023

252 252

Are you satisfied with the kind of product that you receive from 3.66 your online companies? Are you satisfied with the product availability with the companies 3.76 you buy from? Generally, are you satisfied with the frequency, quality, pricing, 3.60 flexibility and security of information?

0.949

252

0.967

252

Appendix G
Demography of Respondents Demography Gender Age Nationality Mean 0.58 2.44 1.36 Std. Deviation 0.502 0.680 0.480 N 252 252 252

Gender Cumulative Frequency Percent Valid Percent Percent Valid Female Male 2 Total 106 145 1 252 42.1 57.5 .4 100.0 42.1 57.5 .4 100.0 42.1 99.6 100.0

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Master Research Report Of University Of Electronic, Science And Technology Of China

Are you a National of china? Cumulative Frequency Percent Valid Percent Percent V Yes aNo l i Total d 162 90 252 64.3 35.7 100.0 64.3 35.7 100.0 64.3 100.0

Age Cumulative Frequency Percent Valid Percent Percent Valid Below 18 years 19 - 24 years 25 - 30 years 31 years Above Total and 4 155 70 23 252 1.6 61.5 27.8 9.1 100.0 1.6 61.5 27.8 9.1 100.0 1.6 63.1 90.9 100.0

54

Appendix

Appendix H
Impact of E-Commerce Innovation on the Chinese Purchasing Behavior
This is a questionnaire designed to collect data about the impact of e-commerce innovation on the Chinese purchasing behavior. With the assistance of my fieldworker, I will appreciate if you could take your time to fill this questionnaire. In a situation where you are uncertain, please give your best answer. Any information obtained in connection with this study that can be identified with you will remain confidential. If you have any questions about the research, please call Mr. Sam Komlan Gbongli at any time. Tel: 008615884531152 or e-mail:samxp12@yahoo.fr

PART A For each of the statement below, please indicate the extent of your agreement or disagreement by ticking the appropriate box. The response scale is as follows: 1. Strongly Disagree Agree 2.Disagree 3.Neutral 4.Agree 5.Strongly

Product Price I think online companies offer better price than off-line. 1 2 2

Scale 3 3 4 4 5 5

I think the price of a specific product or item I buy online influence my purchasing 1 decision very much. Purchasing online saves me money. 1

Convenience Purchasing on the internet saves me time. I can buy things online anytime I wish. 1 1 2 2 2

Scale 3 3 3 4 4 4 5 5 5

When ordering online, I can change my order several times before completing the 1 transaction. I think purchasing online is convenient. 1

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Master Research Report Of University Of Electronic, Science And Technology Of China

Trust The vendor from whom I buy things online is benevolent. 1 2 2

Scale 3 3 4 4 5 5

The vendor from whom I buy things online has the capability to protect my 1 personal information. The companies selling product online do so in accordance with what they claim. The vendor from whom I buy things online will fulfill his promise. 1 1

2 2

3 3

4 4

5 5

Product Availability Some of the products I purchase online are not available in my shopping area. The number of things sold on online is much larger than that of off-line. I have more choices online than offline for a specific product. 1 1 1 2 2 2

Scale 3 3 3 4 4 4 5 5 5

Social Characteristics The opinions and experiences of my family affect my purchasing decision. The opinions and experiences of my friends affect my purchasing decision. 1 1 2 2 2

Scale 3 3 3 4 4 4 5 5 5

The feedback and evaluation of a product purchased online affects my purchasing 1 decision.

Satisfaction Are you satisfied with the trust that you have for the online companies? Are you satisfied with convenient or ease of using the internet? 1 1 2 2 2

Scale 3 3 3 4 4 4 5 5 5

Are you satisfied with the kind of product that you receive from your online 1 companies? Are you satisfied with the product availability with the companies you buy from? 1

2 2

3 3

4 4

5 5

Generally are you satisfied with the frequency, quality, pricing flexibility, and 1 security of information?

56

Appendix

Purchasing Behavior I will purchase things online. I intend to buy things online. I think buying online is attractive. 1 1 1 2 2 2

Scale 3 3 3 4 4 4 5 5 5

PART B I. II. Gender : 0)Female [ ] 1)Male [ ] 3) 25-30[ ] Yes [ ] No 4) 31and above[ ] No [ ] [ ]

Age: 1) Below 18[ ]

2)19-24[ ]

III. Are you Chinese?

IV. Have you bought things online before? Yes [ ] 1. If yes, how often do you purchase online?

Daily [ ] Weekly [ ] Monthly [ ] Quarterly [ ] Semi-Annually [ ] Annually [ ] 2. If No, the primary reason why you do not shop online? V. Internet Experience (Years): Less than 1 year[ ] 1-2years [ ] 3-4 years [ ] 5-6 years [ ] 7-8 years [ ] 9 years or more [ ] Educational Background: PHD [ ] What is your major? 1) Undergraduate [ ] 2) Graduate [ ] 3)

VI.

VII.

Thank You!!!!!

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