college of management mahidol university how to promote b2c, using online customer experience...

College of Management Mahidol University

How to promote B2C, Using Online Customer Experience

Analysis


How to promote B2C, Using Online Customer Experience Analysis

Research Team Members:

Ms. Chatamon Poldul

Mr. Bunlerd Wekairungroj

Advisor:

Dr. Prasopchoke Pramongkit

College of Management, Mahidol University


Agenda1. Introduction

2. Theoretical Model

3. Research Methodology

4. Research Findings

5. Recommendations and Implications


Introduction


Growth of Internet and online purchase in Thailand

Source: NECTEC's Internet User Profile of Thailand 2001

1.00

0.18

2.40

0.46

3.50

0.69

-

0.50

1.001.50

2.00

2.50

3.003.50

1999 2000 2001

Internet Usage Online Purchase

Million

Year


Source: NECTEC's Internet User Profile of Thailand 2001

Reasons against Internet Purchase

8,241

6,473

5,374

4,979

4,793

3,744

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Number of Respondents

Can't see/feelProducts

Don't trustmerchandisers

Don't want to revealcredit card no.

Not Interested

Too Complicated

Don't have credit card


Objectives of this study

• To analyze Online Customer experience in Thailand

• To identify key determinant factors based on online consumer experience


Theoretical Model


Theory of Planned Behavior

Behavioral Beliefs

Attitude Toward the Behavior

Normative Beliefs

Subjective Norm

Control Beliefs

Perceived Behavioral

Control

Intention Behavior

Actual Behavior Control

Source : Icel Ajzen, 1985


E-Commerce Consumer Behavior Model

Source : Electronic Commerce a managerial perspective, Turban, Lee, King and Chung, 2000, p.74

Stimuli• Marketing• Others

Stimuli• Marketing• Others

Vendors’ Control Systems• Logistic Support• Technical Support• Customer Service

Vendors’ Control Systems• Logistic Support• Technical Support• Customer Service

Personal Characteristics

Personal Characteristics

Environment Characteristics

Environment Characteristics

Buyers’ Decisions

Buyers’ Decisions

Decision Making Process


Hypothesis

Transaction Services

Website Facilities

Environmental Factors

Merchandise

Certificate Authority

Buyer’s Decision

Buyer’s Decision

H1

H2

H5

H4

H3


Research Methodology


Population and Sampling Procedure

Population• Target population

Internet users who have online purchased experience

• ExtentBangkok, Thailand

• Sample size312

Sampling Procedure• Probability Technique

Simple random sampling method

• Unit of sampling Governmental and

private organization


Data Collection

Data Collection• Primary Data :

Questionnaires• Secondary Data :

Journals, Websites, Articles, Books, Related Research

Data Collection Process

• May 6 –26, 2002

Research Instrument and Measurement

• Personal Characteristics

• Attitude toward online shopping


Data Processing and Analysis

Descriptive Analysis• Frequency• Mean• Distribution

Hypothesis Testing• Factors Analysis• Regression Analysis


Research Findings


Descriptive Analysis

Male56 %

Female44 %

2 2 %

2 5 % 3 %

6 %

4 4 %< 2 6

2 6 - 3 0

3 1 - 3 5

3 6 - 4 0

> 4 0

2 %2 % 2 %

5 5 %

3 9 %

High School

Diploma Degree

Bachelor Degree

Master Degree

Doctor Degree

GenderEducation

Age

Unit : Year



28 %43 %

16 %6 %7 % < 10,000

10,000-20,000

20,001-30,000

30,001-40,000

> 40,001

MonthlyIncome

Career

4 %3 %

7 %

56 %

30 %

Student

Government Officer

Private Sector employee

Entrepreneur

Others

Unit : Baht



2 9 %

3 4 %

2 6 %

11 %0 %

< 1 Years

1 - 2 Years

3 - 4 Years

5 - 6 Years

> 6 Years

1 3 % 2 0 %

1 2 %3 4 %2 1 %

< 5 Hours

5 - 9 Hours

1 0 - 1 4 Hours

1 5 - 1 9 Hours

> 1 9 Hours

Internet Usage per

Week

Internet Experience


Product Value

14%

35%29%

16%6%

< 500500-1,0001,001-2,0002,001-5,000> 5,001

Unit : Baht


Type of Purchase

192

137

73

52

41

38

28

23

22

33

0 50 100 150 200Number of Respondents

Books

Audio Media

Computers

Facility Exp.

Hosting Fee

Clothes

Tour Package

Gifts

Commodities

Other


Type of Payment

163

173

83

9

7

0 5 0 1 0 0 1 5 0 2 0 0

Number of Repondents

Credit Card

Bank Transfer

Cash

Electronic Card

Other


Hypothesis Testing Factor Analysis


(V.E = 46.670)

• CA Knowledge

• CA Logo

• CA Confidence

Transaction services

(V.E = 46.872)

Delivery system

After sale service

Variety of payment method

Online payment security

Exact location

Merchandise

(V.E = 31.207)Variety of products

Update products

Non-tax products

Product comparison

Cheaper price

Save-time

No Pop-up

Website facilities

(V.E = 38.443)

Accuracy information

Modified web pages

Problem solution

Easy URL

Environment factors

(V.E = 21.645)

Family

Friends

Boss

Note :

V.E = Variance Explained

Unique products


Hypothesis Testing Regression Analysis

Hypothesis Testing B Sig. Results

Transaction Services 0.329 0.000 Reject Ho

Certificate Authority 0.160 0.000 Reject Ho

Merchandise 2.718E-03 0.698 Accept Ho

Website Facilities 6.770E-04 0.926 Accept Ho

Environment Factors 2.280E-02 0.008 Reject Ho

Model R R Square Adjusted R Square

Std. Error of the Estimate

1 0.970 0.941 0.940 0.1225


The results of the study

Transaction Services

• Delivery System

• After sale service

• Exact offline location

• Variety of payment

method

• Online payment security

affect

Online Buyer’s Decision


Certificate Authority (CA) seal approval

affect


Recommendations and

Implications


Recommendations and Implications

Website Vendors• Provide logistic system

• Provide standard payment security system such as SSL and/or SET

Government• Provide infrastructures for

E-Commerce

• Draft laws and regulations to support and encourage E-Commerce environment

• Collaborate with banks and software designers to provide security electronic payment system


Q & A

Thank you for your attention


Supported


Security Schemes in Online System

• Privacy (Confidentiality) – unavailability of a message to non-authorized reader

• Authentication – confidence that the message received really came from the sender who claims to be

• Integrity – confidence that the contents of message have not modified during its transmission

• Non-Repudiation - eliminate the ability to refuse to accept an obligation


Certificate Authority (CA) Framework


Customer Internet merchantbearing a certificate

( 2 )Contacts certificate authority to verify the legitimacy of the storefront

( 1 )Visits merchant’sstorefront and decides to make a purchase

( 3 )Provide informationFor purchase

( 4 )Contacts certificate

authority to verify the legitimacy of the

customer

Source : Electronic commerce security, risk management, and control, Marilyn Greenstein and Miklos Vasarhelyi, p.330


Standard Security Protocol

• Secure Socket Layer (SSL) – a special communication protocol used by Web browsers and servers to encrypt all communications online

• Secure Electronic Transaction (SET) – a set of cryptographic protocols jointly developed by Visa, MasterCard, Netscape, and Microsoft and designed to provide secure


Infrastructure

E-Commerce Application

ManagementT

ech

nic

al

Sta

nd

ard

Org

aniz

atio

n

Pu

bli

c P

olic

y

Peo

ple

Source : Electronic Commerce a managerial perspective, Turban, Lee, King and Chung, 2000, p.6


Thailand E-Commerce Master Plan

• One of Thailand IT Policy Framework which aim to develop ICT policy framework of the nation

• The purpose of E-Commerce flagship is to strengthening strengthen competitive advantage of Thai entrepreneurs especially SMEs


Master Plan Strategies• Proactively participate in foreign trade policy• Development and actively deployment of E-

Commerce SME policy• Providing adequate and affordable IT

infrastructure• Developing human resource• Creating public awareness• Creating trust and confidence by developing :

– legal framework– Payment system and security– Information management

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