final proposal of pd

7/23/2019 Final Proposal of Pd

http://slidepdf.com/reader/full/final-proposal-of-pd 1/14

Research Topic:

“Effects of customer knowledge and trust in online shopping in Pakistan”

Abstract:

Internet has developed in new delivery channels electronic transactions are

increasing rapidly. This need has arisen to understand how they perceive directly to

buy consumers. Most of the people who use the internet to purchase goods online,

but that there are still some reasons for which consumers are reluctant to buy

online. The attitudes of people toward the purchase online are different in Pakistan.The purpose of this study is to review the factors felt reservation of consumers in

online shopping.

The main objective of this research is to study, especially what are factors affecting

the consumers directly for online shopping. To this end, a survey was conducted

and the 1! "uestionnaires were distributed among the students of different

universities and the general public. The replies have been analy#ed by means of

fre"uency distribution, average and chart analysis.

The results of the survey analysis has shown that most of the people already

shopping online and prefer to make their purchases online, but there are some

factors such as psychological factors, social factors emotional factors, and the

privacy factors which affect the buyer attitudes of online purchases. The protection

of privacy and security are major problems that affect the behavior of the

population to buy online. $arious attitudes of consumers toward online shopping

are not in rest in the study which reveals that the purchase online is easy,

comfortable and better that conventional shopping due to various factors.

Price, the trust, the convenience and the recommendations have been identified as

important factors. Price was considered to be the most fascinating and affecting

factor for the majority of students and the general public. Most of the consumers

hesitate not to do shopping online, because of the insecure payment and

transactions systems.



INTRODUCTION:

The main objective of study is to e%amine the consumer behavior of purchasing

goods in Pakistan with the help of internet &online shopping'. This e%ploration is to

recogni#e and get knowledge into shopper conduct towards online shopping

regarding Pakistan, distinguish components which impact internet shopping and

customer conduct to purchase in the Pakistan, to find the e%planation for of less

thought of online buyer towards web shopping in Pakistan. The result would

analy#e to give a guidance that which factor is affecting online consumers for that

purpose, different previous researches is use to direct the direction and to support

this study. The relationship of independent and dependent variables that will be

part of this study, observed through the literature review.

To study the consumer performance of online shopper in Pakistan in array to gain

insights into their behavior and preferences, decision(making frame work, attribute

for store mi%ture and life styles encourage online shopping. The objective

inhabitants for this study consists of the urban consumers who are knowledgeable

and belong to )pper and upper(middle socio(economic classes &*+ - and *+ '

who can be divided into two broad segment, first having ages from 1/(0 and

second with age 0 years and more than. The first stated fragment is the major

fragment and insights about its behavior towards online shopping can provide a

sound basis for further research.

- significant si#e of this segment comprises of students. -n effective presence on

social medium websites is necessary and used as a channel to draw more traffic

which is another reason for youth segment for being the majority of consumers.

*ince this manufacturing is still in its immaturity in Pakistan, the innovators and

early adopters who are in bulk at this time mostly belong to the e%planation above.

This consumer segment is e%perience an enlarge in spend power which is mostly

consumed by purchases of clothing and accessories, food and electronic

commodities such as cameras, cell phones, tablets, computer or computer related

stuff. Thus we see a similarity among these products and the product lines of major

online shopping sites.The second section consists of working professionals or

business men who have enough returns to purchase products online. Their

purchases are less both in fre"uency and "uantity as compared to the previous

segment.



)2T3I+* like India and Pakistan have e%perienced a slower growth of e(

commerce. 4eveloping countries do have the potential of developing an e(

commerce base5 however it will take time because internet penetration in these

countries is still lower in comparison to developed countries. -ll this suggests that

online retail competition is e%pected to increase in the near future. -ccording to aglobal consumer report of -. 2ielson published in 6ebruary !!7, Pakistan was

ranked the world8s second slowest adopter of e(commerce. The low adoption rate

of e(commerce and slow IT growth in Pakistan might be due to factors like high

cost of computers, unavailability of the internet, low computer and internet

education etc. 9owever, the trend has shifted and there has been a rise in online

shoppers in Pakistan in recent years, especially in the commercial capital. *tatistics

show that in !1, e(tailing in :arachi increased by 1;.

The main reason was terrorism in the city that discouraged citi#ens to go out and

shop. *hoppers decided it was safer to be at home and risk online security as

compared to going out and risk their lives. +%amples of some fast growing e(

commerce websites in Pakistan include <=, 4ara#.pk, *ymbios, >arehouse.pk,

ishopping.pk, *hophive, :aymu and many more. onsumers can buy a wide range

of items ranging from designer wear, smartphones, computers and accessories,

books, cosmetics, perfumes and home d?cor items from these online stores.

This research aims to study the e(commerce trends in the international market and

tries to compare it to the Pakistani market. The study has e%plored the determinants

of e(commerce purchases throughout the world and has compared it to the

determinants in the Pakistani market. It has been observed that the online purchase

behavior of consumers is somewhat similar throughout the world. 6actors like

security, privacy, e(service "uality, product attributes, perceived benefits and risks

associated with shopping online etc. affect the online buying behavior of

consumers all around the globe. 9owever, where hedonic motivations and website

design are strong predictors of online buying behavior in some countries, they do

not affect online buying behavior of Pakistani consumers.



Literature review:

>hile there are at present over ! million Pakistanis online figure which is growing

rapidly there is very slight certification or research on how the internet is being used in the

country. This online survey, conducted through .The +%press Tribune and +%press )rdu

websites meant to imprison a snapshot of the local internet user8s viewpoint. oth +nglish and

)rdu sites and their societal media accounts were used to promote the survey in

order to capture a wider, more miscellaneous audience. The survey was conducted over @uly

7(A, !1B. - total of 1,1!! respondents filled out the survey, of which 17(0

year olds make up over half of total respondents, followed by 0(B0 year olds. The survey

also highlighted a large gender inconsistency in respondents, with males dominating. This trend

has been highlighted in the past5 Pakistan8s 6acebook audience was C!; male, B!;

female as of -pril !1B.The vast majority of interviewee &AD;' are from urban areas, led by

:arachi, <ahore and Islamabad.

Trust as an Instrument to 4ecrease omplication -ccording to the social

psychologists trust is that what you e%pect from others behavior in transactions

&unker, 1AA0'. >e are still unable to find the virtual acceptable definition of trust.

-uthors and scholars agree that trust is very important in human transactions, but

most transactions are not held according to the definition of trust &9osmer, 1AA05

*itkin, 1AA75 9usted, 1AA7'. Psychologists describe trust as human specific

characteristics &3otter, 1AC1'. +conomists and psychologists are working hard to

reduce the tension and uncertainty in transaction by creating incentives

&>illiamson, 1AAB5 Eucker, 1A7/'.

-ccording to <uhmann &1A7A' trust is a mechanism which helps to lessen the

an%iety of human beings in the situation in which people faces ambiguity. In this

way trust plays vital role for customers involve in transactions. It decreases the

information comple%ity as well as reducing perceived risk in the transactions

&3ousseau, 1AA7'. Many authors and theorists describe that trust can be built by

personal relationships as there is electronic environment so the stages of trust alsoe%tended because in online markets personal trust is insufficient to decrease the

uncertainty. y functionally trust can be defined as economic framework.

-ccording to economic framework the trust is as cooperative behavior &3ipperger,

1AA7, p. D0'. Trust is simply defined as a one party e%pecting that the other one

will cooperate with him and would not take unnecessary advantage in the

http://tribune.com.pk/


http://www.express.pk/

http://tribune.com.pk/story/543529/by-the-numbers-facebook-in-pakistan/













transaction. Trust must run smoothly either in social or other system according to

the point of view of the person who trusts. Trust can be developed by internal

e%pertise of trustees, his wish to trust, and trustees own e%perience as well as the

third party e%perience can play a vital role in developing the trust &3ousseau, 1AA7,

D!!'.

Trust can be rise in the presence of agreement on conditions5 the e%istence of trust

can only be made in uncertainty risky and unusual environment. There is no need

of trust in certain and risk free environment. The following conditions of online

shopping elaborates that uncertainty plays a basic role to determine the areas that

trust can be used as a mechanism in the reduction of comple%ity. -mbiguity as a

*imple Transaction Measurement 3elated to the *ignificance of Trust in +(

ommerce The flow of facts and information on online network face many threats

and problems that may be triggered due to serviceable errors and safety

complications in the communication and information structure or the involved

conduct of actors in electronic shopping can define this. *ystem 3eliant -mbiguity

*oopramanien and 3obertson &!!C' suggest that attitude towards online shopping

depends upon the view of the consumers regarding the activities carried out on the

internet as opposed to conventional shopping environments. *tudies have shown

that convenience and time saving are the main reasons that motivate consumers to

shop online. hen et al. &!1!' suggests that convenience denotes shopping

practices on the internet that can reduce time and effort of the consumers in the

buying process. *chaupp and ?langer &!!0' argue that +(commerce has made

finding merchants easier by cutting down on effort and time. 2a#ir et al. &!1'

and 3ehman and -shfa"8s &!11' research also demonstrated that online shopping

is better than conventional shopping due to convenience and ease of use, thus is

gaining more popularity in Pakistan.*imilar findings were reported in the research

of I"bal, 3ahman and 9unjra &!1' whose aim was to e%plore consumer

preference to shop online in countries like Pakistan. ne of the variables included

in the model was perceived advantages, and it was proved that perceived

advantages of online shopping significantly impacted consumer8s intention to

make online transactions.Thus, perceived advantages impact the online buying

intention and attitudes of consumers.



nline shopping is going most trendy and widespread in Pakistan these days. It is

a novel trend in Pakistan but it seems that suddenly the trend for online shopping

has been augmented between Pakistani.

It is receiving very universal in Pakistan however it is still not as common as in

>estern countries, the e"uipment times 3eported.

Internet has prepared the world a international community. community of Pakistan

are adopting online shopping trend because of the e%istence of many online

shopping websites in Pakistan.people of pakistan are now mostly aware of online

shoping and mostly wants to do online shoping as well as saving time and

e%penses.

Mostly people of Pakistan purchase goods from their local stores and face

different problems like distance, long line care parking and weather problems.

2ow due to innovation in technology the method of shopping is going to be

changed, introduction of online stores change the shopping trend, the way of

shopping is "uickly. Mostly all ompanies are now offering online shopping

facilities to their customers but customers are hesitating while having online

shopping or mostly not doing online purchasing.

In Pakistan >eb shopping model begin by transfering blooms, blessing cakes on

fresh years and birthday occasion. The population of Pakistan does withdraw from

putting their budgetary information for e%ample bank data and Masterard8s data

to escape fakes and captivating character. conse"uently observing in mind the end

goal to stay away from this threat and falter to send cash online sooner than

physical investigation. ne more reason is that the bank sustain and other

beneficial framework like PayPal that is not accessible, because of this, industry

people are bringing up the rear !; to 0; industry.

• Timing of delivery of product directly has impact on customer trust.

• >ord(of(mouth &bu## marketing' play role in building customers trust.

• ustomer knowledge gives confidence to the customer while having

online shopping.



• +ffect of digital advertisement on customer buying behavior

Hypothesis:

The literature review has led to the development of the following hypothesisF

9!F There may no impact of customer trust on online shopping

91: There may positive impact of ustomer trust on online shopping

9. Product service "uality affects the trust of individual in online shopping.

9B. Personal ability to operate the hardware and software effects trust in online

shopping.

9D. Information of willingness and ability of seller and technical linkage effects

trust.

Theoretical framewor :

ased on the previous researches, a theoretical framework was developed to

scrutini#e the relationship of perceived advantages, perceived risks, hedonic

motivations, psychological factors and website design with online buying behavior

of Pakistani consumers.



!uestio""aire

Trust 1' Product "uality matters to create trust in online shopping. ' y providing

the "uality product trust of consumers can be increased in online shopping. '

ustomers hesitate to shop online because there is a difference in "uality when the product reaches to the customer.

Product G *ervice Huality B' nline shopping can be enhanced by providing the

"uality products. D' Product "uality doesn8t matter in online shopping. 0'

ompanies must provide "uality products to build customer trust in online

shopping.

Person8s -bility /' 6unctioning of hardware and software also matter indeveloping trust in consumer. C' If a consumer thinks that there is a fault in the + (

commerce structure, he wouldn8t shop online. 7' ustomer must aware of using

hardware and software. A' ustomer must authori#e to check the security of his

transaction. 1!' ompanies must have to develop such a technical linkage that is

convenient to customers.



Information 11' The good will of intermediary affects customer trust. 1' -

company must have awareness of customer willingness to shop online. 1B' The

good relationship of seller and intermediary can increase the trust of consumer in

online shopping. 1D' Intermediaries and bank play a significant role in creating a

trust of consumers. 10' ompanies must aware of consumer online behavior. 1/'Privacy issues discourage to customers to shop online. 1C' 9ackers are always

there so consumers hesitate to trust in online shopping.

Research !uestio"s:

What is an impact of customer t rust in online shopping?

6or the calculation of the effect of trust in online shopping in Pakistan use

"uestionnaires, surveys and sampling to find out the result that there is a effect of

trust on online shopping in Pakistan or not.

How customer trusts develop for the online shopping?

If customer have low interest in online shopping than find out what are the main

factors that affect the customer trust in online shopping and how can improve the

trust in the online shopping by overcoming the factors that are effecting the trust.

Research Desi#":

This section includes that how researcher will be conducted and reach to the end of

the research, and it also e%plain which type of methodology used.

$etho%olo#y:

Huantitative method and primary data collection method in our research is used. To

test the validity of hypotheses which are generated, study the trust level of

individual on online shopping. In order to perform surveys, the educated people

who are aware of the internet are selected. *ample si#e of 0! respondents selected

and we focus the university area because there are educated people who are aware



of online shopping. >e conduct the survey and met the individuals face to face to

achieve the highest reliability in the data collection. The interviews are conducted

by three investigators and also ask from respondent to mention their major online

companies from where they use to shop online. ecause by keeping in mind the

major brands they can answer the "uestions effectively.

The study targets the sample population of consumers drawn from <ahore who

have or don8t have any previous e%perience of online shopping but all of them have

awareness regarding it. *ample si#e for the study is B0! and it employs

convenience sampling techni"ue. 4ata was collected primarily using "uestionnaire

techni"ue. There are five sections in the research "uestionnaire. *ection one

includes "uestions related to demographic profile of respondents such as gender,

age, relationship status, education etc. *ection two consists of "uestions that relate

to internet usage pattern of respondents. *ection three asks respondents about their

previous online shopping e%perience if any. *ection four focuses on "uestions

regarding their previous online shopping e%perience. In the end, section five

consisting of five point <ickert(type scale assists in knowing the opinion of people

regarding barriers to online shopping who have or have not shopped online. >e

distributed our "uestionnaire to respondents who are aged 17 years or above.

efore administering the research "uestionnaire to all respondents, a pre(test was

conducted. That pre(test was conducted on a random sample of B0 respondents in

order to ensure that the "uestion statements are understandable by respondents.

The methodology use in this research is triangulation and deductive in nature.Triangulation research also called mi% research which deal with both "ualitative

and "uantitative. *urveys &"uestionnaires and interviews' are conduct online and

tested by the *P** !.! tool to get analysis

Descriptive Research:

4escriptive research is used to describe the variables, characteristic of population,

and phenomenon under study. In descriptive research researcher mostly find cause

and effects among the variables and mostly concern with the what and how

"uestions.



4escriptive is research is based on "ualitative data and "uantitative data.

Huantitative data analy#ed "uantitatively by using statistical tools. 4escriptive

studies report summari#ed data such as measuring central tendency including

mean, median, and deviance from the mean, variation, percentage, mode and

correlation between the variables

Respo"%e"ts a"% &ey I"formatio":

In this study the main respondent of the research are customers who purchase

goods online. In research secondary data is collected from internet, articles, books

and journals. Primary data is collect throw the "uestionnaire, surveys, interviews

and sampling.

I"strume"ts' Resources a"% Research Tools:

omputer

Internet

M* ffice

*P** !.!

*amples &cluster sampling'

Huestionnaires &mi%ed'

Interviews &structured and unstructured'

6or secondary data main source is internet, books and articles and for primary data

researcher use different tools like surveys, "uestionnaires, interviews and sampling.

3esearcher develop new "uestionnaire which contain both open ended "uestionsand close ended "uestions for their research and take interviews from the selected

sample. Ma%imum si#e of sampling is D!

Research (roce%ure:



4ata of research is collected from the two main source primary data and secondary

data, use instruments and tools to finali#e the data, after using tools analy#e the

data

3esearcher use secondary data but more focus on primary data colleting from

"uestionnaires, interviews and sampling

Mostly interviews and "uestionnaire are taken through the internet online. In

sampling, researcher use cluster sampling from the population of Islamabad,

3awalpindi, <ahore and Multan. In population researcher select sample of D! to D0

who use internet and purchase goods through online.

)thical Implicatio"s:

The data collected from "uestionnaires, surveys and sampling will be used

according to the research ethics and the data from secondary resource would be

given proper references according to the rule of -P- citation style.

A"alysis:

The end results, which researcher get from the using of different instruments and

tool, analy#e the data and find out the final results that trust have impact on online

shopping or have no impact on online shopping.

&ey Rea%i"# for Research Desi#":

*ocial science research, principles, method and practices yF -nol hattiacherjeeJ

3esearch Methods for usiness *tudents fifth edition

yF Mark *aunders, Philip <ewis and -drian

Thornhil.J



Locatio":

-s the research is descriptive and triangulation mostly based on primary data,

researcher conducts their primary data from online surveys and for secondary data

researcher collect data from internet, journals and articles related this topic.

&ey Rea%i"#s:

• ellenger, 4anny +., 3obertson, 4an 9., and 9irschman, +li#abeth .

&1AC7', KImpulse uying $aries by Product,K @ournal of -dvertising

3esearch, 17, 10(17.

•

ellenger, 4anny +., 3obertson, 4an 9., and Lreenburg, arnett -. &1ACC',K*hopping enter Patronage Motives,K @ournal of 3etailing, 0B, A(B7.

• hatnagar, -., Misra, *., and 3ao, 9.3., !!!, n 3isk, onvenience, and

Internet

• rassington, 6. G Pettitt, *. &!!!', Principles of Marketing, nd +d.

+dinburgh Late, Pearson +ducation <td

• rown, M. and Muchira, 3. !!D. Investigating the 3elationship between

Internet Privacy oncerns and nline Purchase ehavior. @ournal of

+lectronic ommerce 3esearch, vol. 0, n. 1, pp. /(C!, !!D..

• huleeporn hangchit, *hawn @. 4outhit, and enjamin 9offmeyer, &!!0',

nline shopping5 ompany business managementJ, @ournal of -cademy of

usiness and +conomics, $ol. 0 &B'.

• 9awkins 4elI,3oger,@..,:enneth,-.. and Mookerjee, -. &!!7',

onsumer ehaviorF uilding Marketing *trategy Ath +d,Tata McLraw 9ill

Publishing company <td.

• 9o"ue, -. N. G <ohse, L. <. &1AAA'. 4esigning interfaces for electronic

commerceF Predicting how information search costs influence consumer

choice. @ournal of Marketing 3esearch, B/, B7C(BAD..• @ac"ueline @. :acen &!!B', ricks G licks G the uying ImpulseF -n

Investigation of onsumer Impulse uying ehavior in an nline and a

Traditional 3etail +nvironmentJ, +uropean -dvances in onsumer research,

$ol. /, p.C1(C/



• @ahng, @. @ain, 9. and 3amamurthy, :. &1AAA'. Product omple%ity,

3ichness of >eb(based +lectronic ommerce *ystems, and *ystem *uccessF

- Proposed 3esearch 6ramework. -ssociation of Information *ystems

onference, Milwaukee, >I.

• Malhotra, 2., :im, *. *., and -garwal, @. !!D. Internet )sers Information

Privacy oncerns &I)IP', The onstruct, the *cale, and a ausal Model.

Information *ystems 3esearch, vol. 10, n. D, pp. BB/(B00.

• Monsuwe, P.T., 4allaert, . L. G 3uyter, :. &!!D!. O>hat drives

consumers to shop online - literature review8 OInternational @ournal of

*ervice Industry Management 10F 1, 1! Q 11.

• 2ina koski. 6rontiers of business research, !!D

• *mith, 4. -. G 3upp, T. >. &!!B'. O*trategic online customer decision

makingF leveraging the transformational power of the Internet8 OnlineInformation 3eview CF /, D17 Q DB.

• Trochim, >.M.:. &!!' 3esearch Methods :nowledge ase. ornell

)niversity.

• +lliott, M. T., and *peck, P. *. 6actors that affect attitude toward a retail web

site. Journal of Marketing Theory and Practice

• Lefen, 4., :arahanna, +., and *traub, 4. >. Trust and T-M in online

shoppingF an integrated model

• @iang, <. -., Nang, E., and @un, M., Measuring consumer perceptions of

online shopping convenience. Journal of Service Management

• Lrabner(:raeuter, *. The role of consumersR trust in online(

shopping. Journal of Business Ethics

• 2ielson. Llobal Trends in nline *hopping. )*-, 2ielson.

final proposal of pd

Documents