Chapter One

Introduction

1.1 Introduction
This chapter starts with a background on online shopping followed by the definition of problem.
It discusses the motivation for research and the scope of study besides the research questions and
research objectives. Moreover, it looks at the method outline and finally presents the thesis
overview.

1.2 Background
Online shopping is becoming increasingly popular, where more and more consumers around the
world are getting connected and comfortable with the online shopping experience. An increasing
number of retailers are now seeking growth through e-commerce. Businessmen are no longer
confined to their city or region. E-commerce has established itself in the developed countries;
however it is yet to make inroads in most of the developing countries (Dholakia, 2005).
In the U.S., Forrester Research shows that $248.7 billion online sales are expected by 2014; an
annual growth of 10 % (wwwmetrics, 2009). In Western Europe sales are expected to reach 14
billion Euros ($155.7 billion), a growth of 11 % annually (ibid). Furthermore, the head of
Alibaba Group's strategy expects that large Chinese e-commerce transactions hosted by its main
shopping websites to triple to 3 trillion Yuan (US$473 billion) over the next five to seven years,
as the country's online retail market continues to expand (Osawa, 2012).

B2C (Business to Consumer) e-commerce sales in MENA (Middle East and North Africa) region
are expected to reach an estimated $15 billion in 2015, where UAE has the highest percentage of
internet users who shop online, compared to other countries in the Middle East (Dalakian, 2012).
However, in Oman, online shopping has not progressed at a similar pace. As of 2010, B2C e-
commerce sales reached only US$ 70 million (ibid).
According to a research published last September by CBRE (CBRE, 2012), the amount of global
online shopping is set to double in two years‟ time, and 63% of retailers will convert into fully
integrated multichannel businesses within the same period. Despite postal services and other
factors hindering the fast growth of online shopping in the Middle East, two-thirds of international
retailers see their customers making orders online and picking up the items in stores over the next
two years, where multichannel shopping will support physical shopping, not compete with it
(Middle East Oil.net, 2012).

The Government of Sultanate of Oman has taken several initiatives. It has established a reliable
IT infrastructure and has provided incentives to the IT and telecommunications companies. In
2011, it adopted an e-governance strategy. Its main mission is to facilitate and lead government
e-service implementations thereby enhancing the efficiency of public sector using modern
technology and creating a digitally-enabled society in Oman (Omanuna, 2013).
Many local retailers have initiated their businesses online. However, none of them has gained wide
popularity. Such e-retailers have faced many obstacles and challenges which drove many of them
to change their websites from online shopping portal to that of a portal giving information about
their products. Unlike other parts of the world, online shopping is still in its infant stage in Oman,
where consumers are still reluctant to purchase online.

1.3 Problem Statement

Online shopping is yet to become popular in Oman, where consumers are immersed in an
established mall culture that has become a focal point for everyday life and a favorable place for
social interaction amongst the country's growing youth population. Physical proximity is one of
the factors that contribute to this fact as most shopping malls and stores are located in the prime
areas of towns, closer to residential places offering wider parking spaces. Moreover, these
shopping malls are open seven days a week and more than twelve hours a day. Local retailers
have failed considerably enough to attract consumers and make them adopt online shopping as
additional dimension to modern shopping. Omanis are still reluctant to purchase online from
global e-retailers for various reasons, which forms the crux of this thesis.
1.4 Need for Research
The idea of researching on this domain was born due to personal convictions when this
researcher decided to start an online store to promote current business activities. It was found
that online store would complement the physical showroom in reaching out to new customers
and offering better services. However, the advantages of the phenomenon of online shopping
enjoyed by developed countries, haven’t yet convinced the consumers in Oman. This study is
one such attempt to identify reasons behind the slow progress of online shopping in Oman. It
analyzes the various factors that act as barriers to growth and are believed to have an impact on
B2C e-commerce adoption in Oman. This thesis provides an understanding of the current
situation of online shopping in Oman. It gives insights about what drives people to shopping
carts and what puts them off. The study hopes to guide e-retailers on how to break down the
barriers to online shopping in Oman and how to gain consumers‟ confidence and trust. This
dissertation will assist in enhancing online shopping experience in Oman and provides valuable
information about the current status of online shopping in the Sultanate.

1.5 Scope of Study

The scope of the study is to understand consumers‟ needs and expectations related to the online
shopping experience. It explains consumer’s expectations from online shopping portals and what
makes online shopping a more convenient option over in-store purchasing option. This study
intends to find out why consumers are refraining from purchasing products over the internet, and
attempts to understand their attitudes and motivations to shop online. Due to the absence of any
reliable study about online shopping in Oman, literature is sought from neighboring countries such
as UAE, as the lifestyles and cultures are similar. However, the focus of the study will be in Oman
by collecting and analyzing data from Omanis and providing recommendations for Oman retail
market.
1.6 Research Objectives
The research objectives are concerned with determining the factors that are hindering the
progress of online shopping in Oman.
In order to achieve the main objectives, this study investigates:

To study the Factors influencing consumers‟ decisions towards online shopping

To understand the Risk perception in online shopping

To understand the factors Influencing online payment options
 To give recommendations on how to improve online shopping experience in Oman
based on questionnaire survey and interview findings.

1.7 Limitations
Since the target population is not much aware of the value of such researches they generally don't
show much interest in participating in the process. To convince them to partake in the questionnaire
was not any easy task. Moreover, many people are not interested in disclosing or sharing their
personal information, therefore, the personal information questions were asked towards the end of
the questionnaire, where respondents would have developed an interest in the subject by this stage,
and complete the questionnaire. In addition, the time available to distribute the questionnaire,
conduct the interviews, and complete the data collection and entry was quite limited.
 CHAPTER TWO
LITERATURE REVIEW

2.1 Introduction
This chapter includes a review of available literature on factors that are hindering the growth of
online shopping in Oman. It focuses on consumers‟ attitudes towards online shopping and
identifies what drives people to shopping carts and what puts them off. Absence of any reliable
study on consumers' online buying behavior and online shopping in Oman, makes this research a
more significant one. As Oman is located in the Middle East, the researcher considered researches
and reports about the MENA region (Middle East and North Africa) as reliable sources. This
literature review includes references to scholarly literature available on the barriers as to why the
Sultanate of Oman has not progressed the way it should have in terms of e-shopping and e-
commerce, and how its essentially cautious and conservative business approach could be one of
the reasons for the failure of e-commerce to gain much ground in the sultanate. This chapter
describes the state of e-commerce in Oman. It discusses the factors affecting online shopping
growth in the Sultanate. The literature review studies the shopping behavior in mall environment
and describes the lack of local shopping portals. Then, it explains the absence of multichannel
retailing (physical store and online store) in Oman.

Shopping malls in Oman have become the modern day community centers, with so much to see,
try, spend, and consume all under one air conditioned roof (My Destination, 2013). Malls have
become more like full-service community centers, where mall shoppers have more than one
reason to go to malls; cinemas, restaurants, playing areas, spas, hair dressers, banks, art galleries,
education centers, and many more beside retail shops are located in a mall. Shopping malls are
viewed as a place not only for shopping but also for recreation and entertainment (Bloch et al.,
1994).
Most Omani consumers prefer to shop in malls, as they consider shopping mall is a place to meet
with friends and family and have fun. As Oman weather is hot almost throughout the year, people
do not have much outdoors options to spend time and have fun; thus, going to air-conditioned
shopping malls is the only option to spend good time and shop as well.
Velitchka and Barton (2006) find that recreational-oriented shoppers derive shopping value from
the shopping activity itself not necessarily buying a product. These shoppers love the fun and
fantasy of the shopping experience. Shoppers browse through the aisles and displays to find what
they want, sometimes finding things they were not even looking for; instant gratification is always
tempting. (Paludan, 2012).
Retail stores in the Middle East seem to appeal to larger audience; they appreciate the experience
of interacting with the people they meet while there. Many young consumers, especially the
students belonging to high schools, colleges and universities, do not use credit cards as they do
not have an independent income. Mostly they depend on their families to support them during
their period of study with a few exceptions like the ultra rich. Hence credit cards are not in their
schema of things which eventually forbade them from shopping online, so they may have no
choice but to visit malls.

Being able to try, touch, and see products are some of the advantages of shopping in malls. While
shopping from physical stores, returning or changing purchases is an easy task. In addition,
consumers could have better bargain while buying from shopping malls. Nevertheless, online
shopping is fundamentally different from traditional shopping. While shopping online, people
miss the social dimension (Condon, 2012).

Online shopping is an Internet application that has spread rapidly in the developed countries, but
whose progress has been markedly slower in developing countries, due to infrastructural
(information technology hardware, Internet access) and cultural barriers (high uncertainty
avoidance) (Nuseir et al. 2010).
Online shopping is defined as buying a basket of commodities and its related services (e.g. delivery
service) over the Internet (Chaffey 2009).

According to (Shergill et al. 2005), the customers can be attracted to the shopping website
depending on its commodity value, quality of service and customers’ service, convenience,
experience of using online shopping websites, and finally payment security and privacy. These
factors affect customers’ behaviour when shopping online. Commodities value includes product
price, assortment, availability, and information (Jarvenpaa et al. 1996).
Online retailers must provide their customers with a huge range of the products; this plays an
important role in increasing the probability of gaining customer satisfaction and meeting customer
needs (Szymanski et al. 2000). Moreover, website design, product quality, price comparison,
product testimonials (e.g. online book reviews) and product demonstration (e.g. software
download) must all be considered by online retailers as they enhance buying decisions (Bakos
1997, Peterson et al. 1997).

Quality of service (QoS) includes delivery time, delayed and damaged or lost items, quality of
offered goods, and technology used for processing and delivering customers’ orders (Cairns 1996,
Consulting et al. 2011). Customer service includes after-sale service, answering customers’
enquiries and questions, and providing the customers with return and payment policies.
Convenience relates to ease of use, both in terms of interfacing with the website and the complete
transaction process (including ordering, paying and taking delivery of goods or services).
Experience of using online shopping websites enhances the process of online shopping, and is
related to personal skills in using shopping websites, which influence the customers’ decision for
shopping (Andam 2003, Kurnia 2006, Kshetri 2008a).

Thus, online shopping websites’ interfaces should be well-designed and easy to use, especially for
customers who have a low experience in using these websites for shopping (Griffith et al. 2001).
The interface should also be time-saving and allow easy comparison or browsing of products
(Hoque et al. 1999).
 CHAPTER THREE
THEORETICAL STUDY

3.1 The state of E-commerce: Online shopping trends

Online shopping is becoming increasingly popular around the globe for a variety of reasons.
Some of these benefits include convenience, comparison shopping capabilities and express
shipping options. Indeed, the high internet penetration has contributed to the high-growth of
online shopping as well.

3.2 Internet Usage and Growth in the World

It has become obvious that the internet has changed our lives in the way we work, shop, search
for information and communicate, and meet people, for instance. Two billion people are now
connected to the internet, and this number is growing by 200 million each year (Mckinsey,
2011). Nevertheless, the growth of the internet has a great impact on the world economy.
The growth of Internet utilization in the Middle East comes second in the world with 2,639.9%
growth between year 2000 and 2012 (see table 1). These figures clearly show that the growth of
internet usage in the Middle East is one of the highest in the world. As Oman being part of the
Middle East, nevertheless, these figures have positive effects on the growth of e-commerce in
Oman and the Middle East in general.
Table 1: Internet Usage and Growth in the World
Source: Internet World Stats-www.internetworldstats.com/stats.htm

3.3 Internet Usage and Growth in Oman

The internet usage penetration in relation to population in Oman has increased dramatically in the
past decade, where it places Oman with the top five countries in the Middle East which have the
highest growth of internet usage. Oman has an advanced technological infrastructure to support
e-commerce and an active Internet user base. Many telecommunication companies are providing
a high-speed broadband Internet access to the major cities. However, the internet service in the
rural areas is still weak. The Internet World Stats as of June 2012, shows 68.8 % of the population
(about 2.1 million people) are connected to the Internet (table 2), where more than half of Omani
households own a PC. According to The World Bank (The World Bank, 2011), Oman income
level is high, where its GDP is $71.78 billion and of total population 2.846 million. Oman‟s GNI
per capita as of 2010 is US$ 19,260 (ibid).
Table 2: Middle East Internet Users and Population Statistics
Source: Internet World Stats-www.internetworldstats.com/stats.htm

The growth of internet usage in Oman has been phenomenal in the past three years. As shown in
table 3, the percentage has increased from 16.3% in 2009 to 68.8% in 2012. However, the trend
of shopping online seems to be slowly catching up in Oman. UAE has the highest percentage of
internet users who shop online, compared to other countries in the Middle East. In 2010, B2C
(Business-to-consumer) e-commerce sales growth in the UAE was US $2 billion compared to
only US $70million in Oman (Dalakian, 2012).
Table 3: Oman Internet Usage Growth and Population Statistics

Source: Internet World Stats-www.internetworldstats.com/stats.htm

3.4 Online Shopping Growth

Throughout the world online buying has grown exponentially. A country's prospects for online
retail success are closely related to the number of internet users and how comfortable are they in
purchasing products online. Among internet users, the highest online shopping percentage is
found in Asia Pacific, where 87% of individuals with internet access shop online. However, in the
Middle East, only 53% make online purchases as shown in figure 1. Cultural and educational
factors could be reasons behind the slow growth of online shopping in the Middle East.

3.4.1Online Shopping Trends in Oman

Oman's online market remains small at $111 million as of 2012 (AtKearney, 2012). Promoters of
e-commerce sites hope that the increase in internet penetration, from 16% to 68% in the last three
years is likely to further boost their business by targeting Oman‟s growing youth population. The
median age of Oman population is 24years, where 65.7% of Oman‟s population is between age
15 and 64 (index Mundi, 2012).

The trend of shopping online is slowly catching up in Oman where there are a few attempts in
adopting multichannel strategy. However, issues related to online payments and postal services
forced some retailers to change their sites from online shopping portal to that of a portal giving
information about products. For instance, in 2010, The Khimji Ramdas Group, has diversified
businesses, have changed their website www.khimjishopping.com from online shopping portal, to
that of a portal giving information about their products. Recently, few companies have launched
online shopping portals for their customers in Oman and started their business online. Focusing
mainly on youngsters in Muscat as they are the ones who are mostly online and want to buy new
products, these companies are trying to overcome the obstacles that faced Kimji Ramdas, and are
striving to succeed in their new field. Some of these portals are:
- www.alatoolmuscat.com: went live September 2012. It comes out with different deals
every day on electronic items, hotels, restaurants, spas and other services. The business
model of this site is to connect sellers and buyers and eliminate middlemen. Their
revenues mainly come in the form of commission from sellers.
- www.muscat360.com: The site went live on September 2012. This online portal sells
furniture where it connects sellers and buyers and eliminates mediators. On an average, it
gets 200 visitors a day, though only a few of them actually buy things.
- eplus.panasonic.om: On December 2012 Panasonic launched an online shopping portal
for its customers in Oman, a first-of-its-kind initiative by an electronics company in the
country. Purchased products would be delivered within 72 hours of ordering and carry a
one year warranty.
- www.Pizzahut.om: Pizza Hut launched its online service on December 2012. It offers
customers who buy online 15% off. It also offers cash on delivery where payment is
made at the time of delivery.

These sites are still not known widely in Oman and most of them have limited products.
Furthermore, only few of the customers who visit these sites actually buy from them. On the
contrary, Omanis have embraced the e-ticketing concept that has been offered through the
national carrier of the Sultanate of Oman, Oman Air, at a faster pace than other online products
and services.

3.5 Factors Hindering Online Shopping Growth

Privacy and Security Concerns:

Consumer concerns on security and privacy issues, in the process of online transactions, are major
obstacles in the development of e-commerce. As a correct choice can only be identified in the
future, consumers are forced to deal with uncertainty, or take a risk with their choices (Taylor,
1974). Vijayasarathy & Jones (2000) state that perceived risk influenced both attitudes toward
online shopping and intention to shop online.
Although many banks in Oman offer attractive schemes to purchase credit cards, and encourage
the use of it with less interest and more products, the majority of Omani consumers remain
reluctant to use their credit cards and give their financial details online.
According to a PaymentOne survey conducted by Javelin Strategy & Research released in
December 2011, the majority of active online shoppers are concerned that their credit card data
would be intercepted or that unauthorized parties would access the information saved in the
merchant‟s database (Leggat, 2011). A study has revealed that 43% of internet users in the Middle
East have been put off buying products online because they do not trust online payment systems
(ibid). In April 2008, the Internet Crime Complaint Center reported that online payment fraud
complaints filed by consumers in 2007 reached $239 million compared to $198 million in 2006.
The CBO (Central Bank of Oman) advises citizens and residents to take the utmost caution when
carrying out electronic trading. Authorities send messages to warn and advise Omanis to take all
the preventive procedures to make sure of the identity of the seller, to deal only with the
authorized credit card companies, and to avoid financial transactions with unauthorized websites
or individuals, as not to fall victim to scams.
According to Abramson and Hollingshead (1999), online consumers were also concerned that
online vendors may not deliver the goods ordered or that merchandise maybe inferior, incorrectly
selected, or may never arrive.
Dominate Cash Culture
A cash culture is still prevalent in the region with consumers still favoring traditional payment
methods, through concerns over the security of card payments. Although people are aware of
transaction facilities offered by available credit cards, they nevertheless remain dubious with
using credit cards comfortably for online and offline payments.

Cash is widely used in Oman; most Omanis pay for their daily needs in cash. Doctors and
hospitals often expect cash payment for health services. Many companies pay salaries in cash.
Small restaurants and coffee shops accept cash only. The majority in Oman prefer to get cash at
an ATM to pay for their needs rather than using a credit card.

A deep rooted cash culture is still highly influencing consumers buying behavior. A research
conducted by Ernst & Young (2012) in the MENA found that 60 % opt for cash when they asked
how would they like to pay when they shop online. However, only 19 % like to pay by credit card
and 18 % prefer to use debit cards for online purchases.
Unreliable Delivery
Delivery is the most integral part of the whole online shopping process. A business on the internet
is incomplete if the purchaser of that product or service does not receive it. Most online shoppers
in Oman face delay in receiving their products and some do not receive anything at all. Dennis et
al. (2002), explain that customers are put off online shopping by delivery procedures.
Customers also get frustrated by unsuitable times of delivery and unreliable delivery services.
Waiting days or weeks for goods would lead to abandon online shopping. Customers expect their
orders to be home on time and without failed risks, otherwise they will not buy again. A research
published by “The Independent” on January 2013 found that 60% of people shopping online last
year had problems with delivery of their items (Charlton, 2013).
Some of global online e-retailers do not offer shipping to certain countries, for instance, e-Bay
and Tesco do not ship to Oman. Besides, many online portals charge high shipping costs to
Oman which increases the total cost of the product.
Lack of Individual Home Address
A survey conducted by Al-Solbi and Mayhew (2005) in Saudi Arabia considered the lack of
individual home addresses is another significant obstacle to online shopping growth. In Oman,
individuals have no uniquely identified addresses or mailboxes, and mail cannot be delivered to
homes or offices. Lack of a door-to-door postal service has a negative impact on online shopping
growth. Oman does not use a postal system that delivers to home addresses. “If you need to receive
mail or packages in Oman you have to pay extra charges for alternate services which provide mail
tracking and more expedient service, such as Aramex and DHL” (Oman Coast, 2012). Businesses
in Oman use international shipping companies‟ services like Aramex to deliver safely on their
contracts. Individuals use their work addresses, i.e. the address of the company they work for, if
they have to receive parcels from abroad. The location of a company is easier to be identified by
couriers than a home address.
Consumer Cognition
Consumer cognition is another important factor impact consumers‟ buying decision. Online
transactions must be conducted through computer networks. Therefore, an online buyer must be
in the first place willing and capable to operate a computer. Beside the basic knowledge of
computer use, consumers also have to learn the skills needed to obtain the desired information on
the internet. Since learning-by-doing is an important to acquiring such skills, those who have the
most experience at shopping on the internet are likely to be the most skilled (Ratchford et al.,
2001). In 2011, the Sultanate of Oman has introduced Information Technology studies to students
in the early stages of education. It aims to develop education and raise its efficiency in
the light of modern challenges and requirements of the future. This step helps Omanis to
improve their computer skills in the long run.

Lack of Local Shopping Portals

Online shoppers prefer to buy locally. According to the latest MasterCard Worldwide Survey on
Online Shopping Behavior, faster deliveries times, buying trusted and familiar brands and being
able to return goods easily, drives people to shop online from local stores (O‟Carroll, 2012).
Some markets have the technological infrastructure to support e-commerce, but poor in-country
dynamics such as logistics, digital laws, or cultural biases that make internet users wary of
purchasing online (Atkearney, 2012). Oman has an advanced technological infrastructure to
support e-commerce and an active Internet user base; however, managers of online shopping sites
say the growth in online shopping in Oman, although encouraging, is not as high as expected.
“People still have a lot of questions and concerns about online payments. And so many of them
just prefer to get information about products on offer and actually physically visit stores to check
them out.” says Shaheer Abbas an online retailer (Solomon & Joseph, 2013).
Retail stores in Muscat do not perceive online shopping as a challenge, at least for the time being.
“People still like to experience the pleasure of physically visiting stores and buying stuff
online shopping is still in its infancy and even those who shop online carry out traditional
shopping. So no, we do not perceive the growth of online shopping as a threat,” says Renil
Markose, manager of a leading branded store chain (Solomon & Joseph, 2013). Very few local
retailers have launched shopping websites in Oman; however most of them do not meet
customers‟ expectations.

Absence of Multichannel Retailing

Multichannel retailing allows the consumer to transact via a variety of connected channels such as
in-store, online over a computer, and via a mobile site or „app‟. According to The Gulf (2012),
growth in multichannel in the Middle East is being constrained by a lack of content, with many
local retailers failing to offer online product catalogues or purchase facilities on their websites.
Other barriers include a level of mistrust of local retailers, poor customer service, and absence of
an established and trusted postal system.
The absence of multichannel retailing (physical store and online store) in Oman is impacting
online growth. Although many leading brands are available in the sultanate, however none of
them have adopted the multichannel strategy.
Multichannel shopping complements physical shopping, not compete with it. E-commerce and
multichannel integration in emerging markets offer tremendous opportunities at potentially lower
risk on investment than building bricks-and-mortar stores (Atkearney, 2012). With a dearth of
postal services hampering the growth of online shopping in many parts of the Middle East, and
the mall-environment set in the daily activities of the Middle East residents, two thirds of
retailers see their customers making orders online and picking up the items in stores, over the
next two years.
According to research published on September 2012 by CBRE (CBRE, 2012), a property
consultant based in the U.S, when asked how they would do more business online, 80% of
respondents said they would offer shoppers the chance to use online kiosks in their stores. “To
be successful, online retailers will have to become more creative in their offer in order to entice
shoppers away from organized formats.” said Matthew Green, the head of research and
consultancy for CBRE Middle East (Waqas, 2013).

According to CBRE research (CBRE, 2012), 63% of retailers will convert into fully integrated
multichannel businesses in the coming two years. Many multichannel shoppers like to research
online, but more still prefer to buy products at a physical store.

Conclusion
Based on the detailed review of literature on the factors hindering online shopping growth in
Oman, a research is prepared to investigate these factors and to understand the current situation
of online shopping in the Sultanate.
 Chapter-4
RESEARCH METHODOLOGY

4.1 Introduction
This chapter describes the methodology deployed in this study and explains the methods used to
address the dissertation's research questions. It describes the purpose of the study and the data
sampling techniques used. Furthermore, it specifies the data collection methods used for the
purpose of the study and describes the methods employed in analyzing the data.

4.2Research Design
The research design is used to address the research questions which were taken into consideration
in this study. According to Sunders et al. (2003), the research design is a general plan, of how the
main objectives being examined in the thesis, were determined. This requires to clearly stating
the objective of research questions, source from which data is to be collected and the constraints
in relation to time, access and ethical issues. There is several research designs used in different
scenarios; however, the purpose of the study enables the choice of a strategy, which sometimes
could be more than one design as well. In the view of Saunders et al. (2003), there are three
various types of research design followed as: Exploratory, Descriptive and Explanatory.

4.3 Data Sampling

Research Population
The survey was conducted to different age groups of internet users in Muscat, the capital of
Sultanate of Oman, and its surroundings. Omanis and expatriates partook in the questionnaire,
who might or might not been online consumers. Interviews were conducted to internet users who
have online shopping experience and to those who are reluctant to purchase online, including
Omanis and expatriates. Interviews were scheduled to cover the information that is important to
this study. Valid data came from accomplished questionnaires and interviews.
Sampling Techniques
According to Saunders et al. (2003), it is impossible for a researcher to collect and analyze all the
data available due to restrictions in time, money and often access. However, sampling techniques
provide various methods that enable the researcher to reduce the amount of data to be gathered by
considering only data from a part of population yet, still get the appropriate results to generalize
the findings.
Data for this study was collected randomly from internet users. Initially the participants were
asked if they were internet users, only then the questionnaires were distributed and interviews
were conducted.

Sample Size
When conducting a survey, the sample chosen should represent the rest of population; therefore,
for this study purpose, 150 questionnaires were distributed to different sections of society at
different locations such as social gatherings, malls, companies, clinics and universities.
Questionnaires were distributed in person, and via online survey using email invitations.
Interviews were conducted by random selection of online and non online shoppers.

4.4 Data Collection

This study is based on primary data collection as its main purpose is to study the current status of
online shopping market in Oman. Moreover, secondary data has been used to present the
theoretical and conceptual part of the study and designing the questionnaire. It was also useful in
providing relevant and recent statistics and facts about online shopping.

Data Collection Instruments

There are various data collection instruments that are used depending upon the type of research
proposal. The researcher may use one or more of the instruments in combination for the purpose.
Such tools or instruments of data collection include interviews, questionnaire, and observation.
In order to meet the objectives of this study, two instruments were used; a questionnaire and
interviews. Closed forum questionnaire was distributed consisting of a series of questions for the
purpose of gathering information from respondents. Furthermore, structured interviews were
conducted in order to strengthen the validity and reliability of the findings and to find out answers
to some of the research questions.