Chapter Four Presentation, Interpretation and Analysis
This chapter presents, interprets, and analyses the data gathered from the hosted survey questionnaires conducted by the researcher through a web site. The general population for this study is composed of 30 respondents who are randomly selected and willingly answered the online survey questionnaire. Basically, the findings of the study are presented in different sections.
Part One presents the profile of the respondents of this study that make up the survey method. It is important to know the profile of respondents for it is among the most important variables in the study as well as for the purposes of accuracy and validity in relation to their responses to survey questions. Similarly, it is assumed that the attributes of the respondents influence their behaviour and answers on the survey questions.
On the other hand, Part Two discusses the results of the research questions asked in the survey questionnaire and also the research hypotheses in relation to the main subject of the study – what are the different factors that influence their behaviour and intentions in purchasing books through online means? The discussion is subdivided into sub-sections that provide information about the question being probed. The hypotheses of this study serve as the sections as there are also some related facts to be presented to support such. In aggregate, this chapter mainly integrates the outcome of the survey and the factual information established through the adapted literatures and the findings of previous studies directly related to the research topic.
PART 1. PERSONAL PARTICULARS
Considering that the socio-demographic profiles of the respondents is among the affecting variables of the study, this section presents, interprets, and analyses the role of gender, age, educational background, occupation, and income level.
Table 1. Gender of Respondents
Gender
Frequency
Percentage
Male
9
30
Female
20
67
Unidentified
1
3
TOTAL
30
100
The table and figure above presents that twenty (20) out of 30 respondents belongs to the females while nine (9) are males. One (1) of the respondents is unable to identify his/her gender. However, it did not affect the results significantly.
Table 2. Age Group of Respondents
Age Group
Frequency
Percentage
18-22
0
0
23-27
1
3
28-32
8
27
33-37
9
30
28-42
6
20
43-above
6
20
TOTAL
30
100
Nine (9) respondents who belong to 33-37 age group said that they have access to the internet. One (1) from 23-27, eight (8) from 28-32, six (6) for both 28-42 and 43-above age groups comprised the rest.
Table 3. Highest Educational Attainment of Respondents
Highest Educational Level
Frequency
Percentage
Completed Primary
0
0
Completed Secondary
4
13
Undergraduate
10
33
Postgraduate
16
54
Others
0
0
TOTAL
30
100
In terms of highest educational attainment, the following results are obtained from the 30 total respondents: sixteen (16) are postgraduate, ten (10) are undergraduate, and four (4) completed secondary.
Table 4. Occupation of the Respondents
Occupation
Frequency
Percentage
Salaried-employed
22
74
Self-employed
7
23
Households
0
0
Unemployed
1
3
TOTAL
30
100
According to the table above and the graph below, twenty-two (22) of the total respondents are salaried-employed while seven (7) are self-employed and one (1) is unemployed.
Table 5. Average Monthly Income of the Respondents
Average Monthly Income
Frequency
Percentage
Under HKD8,000
1
3
HKD8,001-10,000
1
3
HKD10,001-20,000
16
54
HKD20,001-40,000
11
37
Over HKD40,000
1
3
TOTAL
30
100
The table and graph reports that sixteen (16) respondents have HKD10,001-20,000 average monthly income. The others are as follows: eleven (11) earn HKD20,001-40,000, one (1) for each remaining brackets – under HKD8,000, HKD8,001-10,000 and over HKD40,000.
PART 2A. THE RESULTS OF THE RESEARCH QUESTIONS ASKED IN THE SURVEY QUESTIONNAIRE
The following section discusses the results of the survey questionnaire. Also, analysis using applied concepts and theories found in literatures is utilised.
Table 6. Do you access the internet or the WWW in the past six (6) months?
Frequency
Percentage
Yes
28
93
No
2
7
TOTAL
30
100
Figure 6.
Due to the popularity of the medium for the past decades, people are already accustomed with the usability of this technological innovation. Accordingly, the internet or the World Wide Web is synonymously referred as the cyberspace (1992). It now touches all lives ( 1999, 1). True enough, the cyberspace and its related mechanisms are rapidly transforming and enhancing many aspects of contemporary society and living. It is primarily and quickly becoming the mainstream media because of the many positive effects that it has on the way that users communicate, receive and disseminate information, or how people use it to gratify their needs. With the perceived efficiency of cyberspace, there are also existent drawbacks that deviates its potential goodness. Because of its powerful prospective, the cyberspace certainly changes how people live people and views the society ( 1995).
Today, the cyberspace, particularly the Internet was used extensively for communications, information gathering, and dissemination. There are four important factors applicable to the Internet that do not overlap with traditional mass media such as television, radio and print, and which bear on the Internet’s potential for democracy. These include: the anarchic nature of the Internet, its interactive features which allow direct feedback to individual articles and opinions, the possibility for web sites to create content primarily through the contributions of its readers, and longevity of materials ( 2001). Early users have continuing excitement about the Internet and saw it as stimulating positive change in people’s lives by creating new forms of interaction and enhancing relationship. According to (1997) and (2001) the Internet would restore community by providing a meeting space for people with common interest, overcoming limitations of space and time. Also, the Internet has rapidly transformed the financial markets by revolutionizing the way financial services are created, managed and delivered. There have been many claims in recent years that the Internet offers new opportunities to engage in politics as it brings new opportunities for direct access to politically relevant information.
With the perceived benefits of the internet, it is not surprising to know that most Hong Kong individuals are already exposed with the processes brought about by internet technology. Besides, Hong Kong is recognized as one of the world’s technology hub. As started in the previous chapter, Hong Kong is now among the countries in Asia with the highest rates of internet penetration and information infrastructure. The country’s local administration has in fact shown active participation in encouraging Hong Kong citizen to be pro-active in becoming a more digitally inclusive society.
In relation to this research, the internet served as the main channel in the procurement and acquisition of online merchandise. This is called electronic commerce (e-commerce) or online marketing. The term e-commerce is simply defined as transacting through electronic means. Gathering, relaying and exchanging information electronically are all covered by e-commerce. Electronic media used for e-commerce can be through the internet, telephone or fax machines (2002). Through e-commerce, the traditional shopping is replaced by click-of-the-button process and people are able to purchase their needs at the most convenient location and most immediate time possible.
Similarly, people are frequently visiting the cyberspace because of its variety of functions. The property of the web which makes users go back is the ability to adjust sites to the different needs, wants, desires and, even personalities of each individual customer (1999; 2001). (1991) observed the importance of understanding internet’s social impact. One reason to expect significant social impact is the internet’s role in communication. For instance in the business and economic sectors, the increasing competition worldwide, escalating demands made by customers and the rapid pace of change in technology are forcing companies to review the way they do business, what kinds of products and services they offer, and the speed with which they release products to market using the internet. The basis of e-business is on the processing and transmission of digitized information such as sound, text and images from one computer to another electronic instrument or device ( 2001). According to the Organization for Economic Cooperation and Development (OECD) ( 1999), businesses have various reasons for introducing e-commerce into their operations. With the commercialism of the internet and the already wide acceptance and use of Information and Communications Technologies (ICT) hardware and software, tasks that are difficult and stressful to perform before are now as easy as 1-2-3 or even A-B-C. Proponents of the new technologies boast that these new systems will enable work to become faster and more accurate. Politically speaking, experts believe that the internet may have considerable potential to reach and engage opinion leaders who influence the thinking and behavior of others ( 1996;2002). There are other uses of the internet that attracts people and allows them to continue their frequent visit such as its potentiality in as a medium of education and learning, entertainment, and information dissemination. For many people who have access to web sites, it opened a whole world of discovery for them.
As directly related with the above discussion, people visit the internet to do their individual thing such as searching information, e-commerce, and the likes. Considering the benefits that they derived from it, people are more likely to be dependent in the internet. The people of Hong Kong, in particular display a high degree of interest and comfort in using technology-based products and services. It has been observed that the high affiliation of the people on using the internet technology for different purposes (e.g. making purchases) is mainly due to convenience, availability, and other factors. In particular, the Internet’s speed, interactivity and connectivity greatly facilitate the acquisition and absorption of knowledge, offering developing countries and its people unprecedented opportunities to enhance and improve the ways of living ( 1997; 1990). Speed may be considered as one of internet’s feature in the e-commerce. Through the fast speed, it enables business to automate many operations and create worldwide products, 24-hours per day at low cost ( 2002).
Among the consumers, they need not visit nearby local stores to buy their needs. Through the internet, needed goods can be viewed, order and paid by online means while sitting down in front of a computer. and (2002) also noted that consumers are interested in making purchases online due to the high availability of the goods offered. Thus, with the beneficial outcomes of the internet to its regular users, it is apparent in that indeed the internet is already an essential element of contemporary life.
As clearly stipulated in the previous discussions, people continue to patronage the cyberspace due to its countless beneficial effects. Moreover, this research documented that the amount people spent in front of their computer sets is dependent on what things they are doing. The amount of time is largely linked to the personal purposes of people on why they go online. In addition to the aforementioned benefits of the internet, it has change the way of life of many people worldwide. With the advent of such technology, it brings convenience and easy mode of information transfer among people of diverse locations. The internet, as one of the most popular form of new mass communication technology, has long been of full use and advantage to all sorts of applications like in businesses where those who are in need of efficient and wide market reach on which to channel their promotional messages. Business, information and entertainment have been communicated with ease through such technological revolutions. These technological advancements have brought people especially those in the business world to utilise a strategy that would be helpful in enhancing the business value of any organisation ( 2003).
The internet is also dynamic and decentralized. With the decentralization and dynamism that the medium offers, people are hooked on it. In relation to this study, this technology brought shopping to consumers with innovative types of market for information. In a single click of a button, consumers will have a wide choice of products to purchase. It provides very satisfactory global marketing application ( 2000).
Table 7. Reasons on why people browse the internet (e.g. Search information like job search, Entertainment like booking of cinema ticket, Online purchasing, Hotel reservation, and Others)
Number of selected reasons
Frequency
Percentage
1. No reason selected
3
10
2. One reason selected
9
30
3. Two reasons selected
7
23
4. Three reasons selected
10
34
5. Four reasons selected
0
0
6. Five reasons selected
1
3
TOTAL
30
100
Figure 7.
On the provided reasons, the search of information (e.g. job search) ranked first followed by entertainment (e.g. booking cinema ticket), online purchasing, hotel reservation, and others ranked second, third, fourth, and fifth respectively.
The extensiveness of the internet could be deemed as the reason on why people use this in information search. The presence of numerous search engines like Yahoo and Google proves that the internet is loaded with details ranging from different fields. In the researcher’s own experience, a single word that is typed in the search button elicits abundant results. The Internet gives users access to vast amounts of information around the globe. It allows quick and effective communication, while exceeding the concern of spatial distances. In terms of entertainment, the internet through the use of e-commerce can facilitate movie ticket bookings. Also, the presence of streaming media as one of the latest technologies related to the internet attracts more users from various age groups. The process of streaming is a technical and web-related term that generally pertains to the operation involving a simultaneous transfer and viewing/listening to data or file through the Intranet or the Internet. Specifically, this term is used to illustrate the transfer of video or audio files – which are compressed, and deliver through the Internet as the medium and displayed by a viewer (e.g. RealPlayer) as they arrive ( 2004). According to (2003),
“Streaming is a technique that processes a file in a continuous flow. This allows the file to be displayed on a browser or player before it’s entirely transmitted. Unlike a downloaded file, a streamed file is not stored on the user’s hard drive. This makes a more attractive format for paid-content distribution”.
A variety of works further explicates that the concept of streaming media dates back to the earliest days of computer technology in the midyears of 20th century (2000; 1999; 1991).
Online purchasing as the main concept of e-commerce is among the reasons why people access the web. As previously illustrated in the beginning of this research, the advantages of the internet in changing the traditional shopping experiences as well as the buying habits of people permit them to have continuous patronage of the medium. The internet empowers customers to shop online (e-Shop) from corner to corner of the globe and enhances their array of product choices and preferences and information about prices (2003; 2002; 1999).
Hotel booking is also mentioned as among the reasons why people access the internet. Because the internet has the capacity to break the barrier of time and space, a consumer who wants to avail hotel services or accommodation can just log in to the hotel’s web page – since almost all popular hotels have their individual corporate sites – and make his/her transaction. Of particular example, Hilton Hotel implemented an electronic ticketing scheme through their website in order to make an easier booking of rooms and meeting facilities ( 2000). According to Bruce Rosenberg, Hilton Hotel’s senior VP for e-business and distribution, the internet facilitates the hotel’s interaction and helps in the transformation of customer-business relationship. In international hotel operations, the presence of websites allows the potentialities of marketing across geographical borders. Foreign clients who are first-time visitors depend on the information about a particular hotel and its service provided in the web. There are several international hotels who invested in multilingual website and seen to be effective means in expanding geographical market coverage. For instance, Adlon Hotel in Stockholm increased its clientele by maintaining a website that caters to specific international languages such as German, French, Italian, Spanish, Portuguese, and Scandinavian languages and English ( 1998).
Other reasons why people access the internet are relative on their personal intentions and needs. It could be presupposed that an online user is also visiting the internet for education purposes like distant learning, chatting or communicating to other people, and the likes.
Table 8. Have you ever made any purchase of book via the internet?
Frequency
Percentage
Yes
23
76.67
No
7
23.33
TOTAL
30
100
Figure 8.
In Hong Kong where the study was conducted, seven (7) out of the total number of respondents made online purchase of the book. The result obtain in relation to the research topic is considered insignificant. This shows that Hong Kong individuals are not yet much engaged in online purchase of book not similar to the British and American people ( 2005; 2002). As clearly observed in the initial chapters of this study, Hong Kong consumers on the other hand, have only begun embracing this type of purchasing practice. Books are considered as a new-fangled line of marketing. Traditionally, people purchase goods that fall to the following categories: convenience goods, shopping goods, and specialty goods ( 1998).
However, it is very apparent that online marketing is an old and existing practice among Hong Kong people as they are already using the internet for online purchases. They shop different things online using common websites like YesAsia.com, Amazon.com and eBay.com websites. Some factors that make Hong Kong consumers interested in making online purchases are the goods’ availability and accessibility. As similar to almost all people who shop online, the instantaneous and convenience of the internet persuade them to continue this contemporary practice.
Among the reasons identified are the following:
· worry about the security of information (e.g. credit card)
· worry about the misuse and exposure of personal particulars
· worry about the problem of return policy and products
· high expenses of shipment cost
· time lag between ordering and receiving products
· others
The NO respondents agreed not to purchase books online due to these aforementioned reasons. Topping the list is the issue of security of information (e.g. credit cards) followed by problem of return policy and products itself, misuse and exposure of personal details, high expenses during the shipment of the product, long waiting of products to be delivered, and other identified reasons.
The issue of security of information and privacy is the most common and one of the biggest problems encountered by online consumers ( 2002). Users’ privacy issues are not new. People have been worried for years about how personal data are used by the government and, more recently, by businesses (1995). The consumer privacy issue is taking on greater magnitude, as the number of people accessing the internet’s information resources grows exponentially and the public becomes more technologically savvy (1995). According to a 1999 report from the USA Federal Trade Commission (1999 in Udo, 2001), information is gathered on the internet in both direct and indirect ways. When a user enters a chat room discussion, leaves a message on a bulletin board, registers with a commercial site, enters a contest, or orders a product, he/she directly and knowingly sends information into cyberspace. The report further states that data can be gathered indirectly, without the user’s knowledge (2001).
Actually, the main security issue relevant to Internet privacy is the people who sell private or personal information through the medium. In e-commerce, this security issue is brought about by purchases or transactions made online. Individuals who access and sell private information are particularly dangerous as they are not concerned about confidentiality and protecting others’ privacy. According to (2000), while data brokers and hackers are known threats to Internet security, people that develop profiles derived from illegally acquired personal data are big threats as well. Illegal profiling has been occurring even before the internet was introduced. However, at that time, personal records are difficult to obtain. With online access, profiles containing various information, from the user’s activities, interests, location and contacts, can easily be acquired and sold to anyone who needs it for whatever purpose.
The computer’s ability to gather and sort vast amounts of data and the Internet’s ability to distribute it globally has magnified the concern of privacy and anonymity on the web ( 2000). Once an individual has ventured into cyberspace, it is hard to remain anonymous (Udo, 2001). Thus, people are afraid that their personal details are exposed all throughout the web. To a lesser degree, e-mail addresses and messages displayed on online groups are not private or secure and can be searched by anyone easily. The problem on Spam e-mailers is then the result. The main sources of information for spammers are postings on Usenet bulletin boards as well as mailing list servers. In some cases, spammers even extract e-mail addresses from user web browsers. Not only do spammers caused annoyance for users whose e-mail addresses had been extracted, but spam e-mails also cause significant costs to the users brought about by e-mail traffic ( 2000).
On the issue of return policy and products itself, consumers are uncertain if they can return items that are defective upon purchase. Another problem is on how to address this found product defect. Unlike in traditional shopping, the consumer is able to evaluate or inspect the product before buying it. In online purchasing, there is no room for this process as products and services are just presented through photos or textual descriptions. Similarly, the high expenses paid by the consumer in the shipment of the purchased product affect his/her decision to shop online. Some online stores collect high delivery charges particularly on areas that are too far from the consumer’s location. Also, as the consumer complains about the delivery charge, time delay in waiting the product to arrive is also a problem.
Online stores address these issues by establishing some consumer welfare programmes and mechanisms. Of particular example, in order to resolve these security issues, companies utilized various means of protections. One of which is through the installation of a firewall. A firewall is a means of securing internet users that is basically made up of a system of a group of systems, which serves as the enforcer of a control policy between two networks. In a way, a firewall works like a membrane of a computer system, wherein it could either block or permit traffic. Some firewalls however, emphasizes more on blocking traffic, while some are developed to stress more on permitting it. The main purpose of putting firewalls on computer systems is to hinder unauthorized internet users from accessing the user’s private networks, particularly the networks of major organizations or companies whose data are highly confidential. Apparently, (1998) has noted that aside from firewalls, encryption is another useful measure in preventing internet security issues. Encryption is actually a process which changes a message into a sequence of coded numbers, which makes the message incomprehensible to users other than the intended recipient. The process of encryption utilizes mathematical algorithms for concealing private or confidential information. This is mainly used for protecting system files as well as e-mail messages (1999). A number of other possible programs or software applications that could protect users for internet security problems are also used by organizations.
In relation to other problems that affect online purchasing, companies and their management launch different strategies that will minimize the hesitation of consumers to eventually indulge in this modern way of marketing. Among the observable means is the building of partnerships and subsidiary companies that is able to address the consumers’ complaints. The present of hotline numbers or online customer service somehow reconcile these problems. All in all, the existing problems on online shopping are carefully studied and solved by online marketing experts. The emerging trends in the computing and internet technologies are also motivated to work on the eventual prevention of these identified problems.
Again, the frequency of online shoppers to shop in the internet is dependent on the personal motives, decisions and their needs. This is inherent to every customer who possesses different mode of living and level of needs. Book purchasing, according to the result of the research done, is for consumer’s personal use.
· Amazon.com
· Ebay.com
· YesAsia.com
· Yahoo
· Others
They are also asked to select more than one website. The following are the obtained result: four (4) selected one item and three (3) selected 2 items and among the preferred site, Amazon.com topped the list. The remaining or twenty-three (23) respondents made no selection because they do not engage in online book purchasing.
Amazon.com is an on line retailer of books and was established as a micro enterprise in the United States during 1994. It is among the most south-after online product/service provider. The company has applied the disruptive technology because of the fact that it has rapid expansion in the aspects of its operations such as business turnover and a spectacular rise in share value since public floatation in 1997 (2003). Even though there are a couple of online bookstores that emerged before Amazon.com, it holds the distinction among the first major pioneers in American as well as worldwide online retailing. Today, the ambition of Amazon.com is to amicably become a premier online retailer through leveraging on its brand and model in business. The following features attract more consumers to shop in this website: low prices and with lots of discounts being offered to their consumers; innovative in nurturing alliances with other online booksellers; their stocks reach to approximately 10,000 items of various sizes; adept in their channel management; a “prompt delivery within the USA” ( 2001).
In Hong Kong, Amazon.com is lined up with other online stores such as Ebay.com, Google, YesAsia.com, Yahoo, and Others. These sites battle for competitive advantage by possessing various mechanisms that attracts potential consumers as well as for the improvement of their overall service.
· More of choice of book categories and language
· Lower cost
· Convenience and time saving
· Getting a book fast than the local bookstores
· Web site promotions and offers
· Comments of other editors, friends or family relative
· Others
They are asked to select more than one reason and the following results are obtained: three (3) selected one item, three (3) selected two items, and one (1) selected three items. The rest made no selection. The main reason found was because of convenience and time saving followed by more choice of book categories and language, lower cost, and website promotions and offers.
The internet offers greater convenience by making shopping possible anywhere at any time and the door-to-door delivery home service system is also of great advantage ( 2005). Meanwhile, the changes in the consumers’ lifestyle had perhaps supported the growth of online purchasing in the country. With most citizens working, time to shop has been limited. However, the presence of online retail sites readily addressed this problem ( 1999). Rather than walk around from shop to shop, people prefer to rest on their free time; thus, shopping online becomes a very practical and appropriate alternative (). As with the case of large choice of book categories and language, the consumer is able to locate limited copies of the books that they prefer. Through the internet, the online buyer can compare the cost of each book. Also, website promotions and offers add excitement to the overall shopping experience because the consumer can save up money or get a certain rewards or rebates.
Again, the number of books purchased by online shoppers is dependent on the personal choices, motives, decisions and their needs. Book purchasing, according to the result of the research done, is for consumer’s personal use – may it be in education and learning, entertainment and leisure, or mere hobby.
The amounts of book purchased online vary. For example, limited edition books are expected to be more expensive due to the limited number of copies. But with the different online stores operating in the cyberspace, the amount spent by consumers is lessened as there are pricing and promotions strategies done to compete with one another like discounts and giveaways.
· Credit card (i.e. Visa/Master)
· PayPal
· Bank transfer
· Cash on delivery (COD)
· Others
Among these payment method, the survey result revealed that most of the people who purchase online use credit card (like Visa/Master), through PayPal, and cash on delivery (COD). Again, this is attributed to the fact that almost all online stores require electronic money or transactions as it is more convenient, faster, and less hassle. But then again, the problem of security and privacy of information affects the whole process and paves way to other mode of payment like cash on delivery (COD), bank transfer, and other means.
LEVEL OF SATISFACTION
The following results were exclusively focused on the seven (7) respondents who made online book purchase. On the scale of 1 (very dissatisfied) up to 7 (very satisfied), the level of satisfaction is measured. The following results are obtained:
The following important details are to be considered in the next part of analysis and discussion of hypotheses:
- According to the result of the survey conducted, only seven (7) out of the 30 respondents have made an online book purchasing.
- Four (4) are males while three (3) are females.
- Two (2) each for the following age groups: 28-32, 33-37, and 42 above. Only one (1) belongs to 38-42 while no one belongs to 18-22 age groups.
- Both undergraduate and postgraduate educational levels have three (3) respondents while only one (1) completed secondary.
- Four (4) respondents are salaried-employed while three (3) are self-employed.
- The average income of three (3) respondents is HKD10,001-20,00 while two (2) earns HKD20,001-40,000 and one (1) earns over HKD40,001.
PART 2B. THE RESEARCH HYPOTHESES INTERPRETATION USING SURVEY QUESTIONNAIRE RESULTS
H1: Young online users have a greater positive attitude and experience towards the use of internet and are more experienced in browsing over various websites for information.
It is perceived that young people are more engage in internet technologies. This is attributed to the fact that the internet just emerged in the market about more than 20 years ago. According to (1999) and (2001), the internet did not emerge until the year 1982. It began its rapid ascent only in the early 1990s, when graphical interfaces became widely available and commercial interests were allowed to participate. With the development of the web, communication became one of its most predominant functions. Then, here came further developments like its integration to the traditional ways of life turning it into more sophisticated and modern (e.g. e-commerce, distance education, etc.). It is expected that the newness of this technology is related to the age group in which it was developed and propagated. It is expected that people belonging to young adult category are well-versed of the processes of the internet. In highly industrialized societies, children and teenagers are already knowledgeable on how to manipulate the computer or surf the cyberspace. It is a part of academic curriculum or area of specialization and study. Also, adults learn the process because they took time to study it as a requirement in their professional careers.
In this research, the most common internet users belong to 33-37 age group. They are no longer considered young on their ages instead they can be called ADULTS. In relation to the online book purchasers, the age groups vary –
Two (2) respondents from each for the following age groups: 28-32, 33-37, and 42 above, only one (1) belongs to 38-42 while nobody belongs to 18-22 age groups. The seven (7) online book shoppers are composed of four (4) men and three (3) women. Due to the insignificant quantity of respondents who purchased book in the internet, it is not safe to say that men are more engaged to the practice than women since majority of the respondents in the survey are women. The findings of this study are contrary to (2002) statement that young men are more frequent users of the internet. In relation to the experiences in browsing over various websites for information, it is indeed a fact. Thus, the hypothesis is valid and accepted. However, the result of the survey found out that men and women are now equally and more likely to access the internet for their personal use and needs.
H2: Online users with greater positive attitude and experience towards the internet are more likely buy goods, like books, via online means.
It is evident that young and adult as well as frequent users of the internet encounter greater positive experience in the internet. This is attributed with the fact that they visit and avail the operations (products or services) offered by the medium. As the survey result reported, twenty-eight (28) respondents have access in the web in the past six (6) months. and (2000) stated that a positive attitude toward e-commerce has a significant influence on online shopping. Because of the advantages of the medium, people are convinced and developed positive attitude towards regular internet use. This will make them avail the products and services. In particular example, when a consumer is satisfied with the first online shopping experience, it is highly probable that s/he will return and purchase again or extend the variety of his/her items to be shop online. This is also supported by the three related theories: the TRA, TBP, and TAM.
Furthermore, (1998) proposed that the internet may influence information search behaviour because of the greater convenience and accessibility this innovation can provide. The positive attitude toward the internet can increase information gathering behaviour. and (2001) provided a similar notion on the positive relationship between attitude and information search behaviour. When a consumer has a positive attitude toward the retailer, he or she is likely to exhibit greater willingness to search product information from the retailer. With these references and the findings of this research, the second hypothesis is valid and accepted.
H3: Positive online purchasing experience increases the willingness of the consumers to shop online as well as make additional purchased from similar online retailers.
As stated, when a consumer is satisfied with the first online shopping experience, it is highly probable that s/he will return and purchase again or extend the variety of his/her items to be shop online. Similar with the above discussion, the beneficial effects of the internet particularly in online marketing are used by consumers to broaden their areas of application or use. The convenience, accessibility, ease of use, interactivity and other features brought about by the medium are factors that result to positive online purchasing experience. Empirical evidences showed that there is a positive effect of attitude toward the internet purchase on internet search intention ( 2001; 2003). Thus, the third hypothesis is valid and accepted.
H4: The lower price of goods offered online increases the willingness of the consumers to purchase items, such as books, through the internet.
The price factor also appears to be an essential determinant. For instance, it is deemed that items (books and CDs) offered in Amazon.com are 9-16 percent lower in price as compared to same goods sold in regular stores. Amazon.com heavily advertises lower prices for the same books one can find from local bookstores (2005). Also, the internet allows efficient price search and comparison by employing internet tools such as recommendation agents, allowing consumers to screen alternatives online, and comparison matrix, – an online matrix with in-depth comparisons among selected alternatives ( 2000).
It is natural that people want to buy items that are cheaper yet good in quality. In the survey result focusing on the seven (7) respondents who purchased books online, only two (2) of them avowed that they shop online because of lower prices. It is not established in the research result that lower price increases the willingness of the consumer to purchase items through the internet. Thus, the hypothesis neither accepted nor nullified. There is a need for specific area of study and discourse focusing on the importance of price as motivating factor in the consumers’ decision making on what and where to purchase products or service.
H5: The e-retailers’ promotional packages increase the willingness and intent of the consumers to purchase or repurchases books online.
and (1998) explained that the use of promotional offers is effective in increasing the intent or interest of the consumers to make a purchase. It is natural that every consumer is persuaded to avail products or services because of a very reasonable promotional package. However, the result of the survey conducted did not show that promotional packages affect the intentions of the consumers to shop books online. The concept of promotions is mentioned on the part of the questionnaire indicating the reason why people purchase online. Only one (1) respondent among the seven (7) online shoppers said that he/she shop online because of web site promotions and offers. With this result, the hypothesis above remains unanswered due to unavailability of data that directly impacts – to approve or negate the claim. There is a need for a more focused and specific study tackling the concepts and theories of marketing mix particularly in promotions.
H6: The effort of the online retailers to ensure the protection of the online consumers against violation of privacy of personal information theft increases the intent of the customer to purchase books via the internet.
In order to protect the buyers’ personal information, e-retailers uses online security and privacy protection means, which are displayed on the retailers’ site either in symbols or statements. In reference to the results of the survey questionnaire, security and privacy problems is among the primary reason on why the respondents do not shop online. From the twenty-three (23) respondents who said NO in online book purchasing, they worry about their security of information. Today, online companies are already addressing the need of consumers in relation to the management of their personal particulars. They do this by coordinating with credit card companies in developing consumer protection assurances. Again, the survey questionnaire is not able to collect information that can validate this hypothesis. Therefore, a suggested additional study focusing on the topic is necessary.
H7: Customers are more likely to purchase books through online means as retail websites provide a wider product profile.
Indeed, customers are encouraged to buy books which have wider product profile or range. The seven (7) respondents who purchased book online said that the reason on why they buy books in the internet is the fact that it has more choices in book categories and language.
In reference to Amazon.com and other online bookstores, there have features in which consumers are able to locate the books they are trying to find. The information such as title, author, edition, place and date of publication, and even a brief summary or description of the book is presented for the sake of the consumer. Some online bookstores also have a price comparison scheme. This is a sort of marketing strategy. With the existing facts and literatures present as supported by the survey result, the hypothesis is valid and accepted.
H8: Attitude towards online shopping is directly influence by family members and relatives who are regular online shoppers and have positive experience in buying books online.
The result of the survey questionnaire is not able to address the idea of the above hypothesis. Thus, the researcher recommends that it is necessary to conduct a more detailed study hat focuses on the effects of family and relatives’ experiences in relation to attitude towards online book shopping.
H9: The efficacy of the e-retailers’ logistics system directly influence consumers intent to purchase books online.
As similar to the above hypothesis, the result of the survey questionnaire is not able to elicit related facts that will approve or negate the claim. Thus, the hypothesis cannot be accepted nor nullified. An enhancement study is strongly recommended.
Specifically, this research aims to analyze how do experience, age, product profile, social influence, promotional offers as well as level of convenience affect the intention of the buyers in purchasing books online. With the results obtained from the survey questionnaires, socio-demographic profiles like age, gender, educational attainment, occupation and income do not significantly affect the behaviour and intention of online consumers. In terms of past experiences particularly the positive ones, the online consumers consider this as important deciding factor on whether or not purchase products (like books) and other services online. Furthermore, a consumer young or adult in nature is capable of doing business online granted that they have adequate knowledge on internet technology. Also, the personal needs, purposes or motives as well as intentions of the consumer are among the strongest factor that convinces them to engage in online shopping experience.
Chapter Five Summary of Results, Limitations, Conclusions and
Recommendations
This chapter presents the summary of results, the limitations, the conclusions, and the recommendations of the researcher in relation to the study – what are the different factors that influence consumer behaviour and intentions in purchasing books through online means.
After conducting an extensive period of doing research and probing, the researcher accomplished the results of the study through the aid of the facts collected in the survey questionnaire, related literatures, and experiences and judgment of the researcher. The researcher came up with the following summary, limitations, conclusions, and recommendations.
SUMMARY
The main purpose of this research is to examine online users from Hong Kong in order to determine the different factors that influence their behaviour and intentions in purchasing books through online means. Using a survey questionnaire composed of 30 respondents, the following results are obtained:
- Twenty (20) out of 30 respondents belongs to the females while nine (9) are males. One (1) of the respondents is unable to identify his/her gender.
- Nine (9) respondents who belong to 33-37 age group said that they have access to the internet. One (1) from 23-27, eight (8) from 28-32, six (6) for both 28-42 and 43-above age groups comprised the rest.
- Sixteen (16) respondents are postgraduate, ten (10) are undergraduate, and four (4) completed secondary.
- Twenty-two (22) of the total respondents are salaried-employed while seven (7) are self-employed and one (1) is unemployed.
- Sixteen (16) respondents have HKD10,001-20,000 average monthly income. The others are as follows: eleven (11) earn HKD20,001-40,000, one (1) for each remaining brackets – under HKD8,000, HKD8,001-10,000 and over HKD40,000.
The following results are presents and centres on the seven (7) respondents who have purchased books through online means.
- According to the result of the survey conducted, only seven (7) out of the 30 respondents have made an online book purchasing.
- Four (4) are males while three (3) are females.
- Two (2) each for the following age groups: 28-32, 33-37, and 42 above. Only one (1) belongs to 38-42 while no one belongs to 18-22 age groups.
- Both undergraduate and postgraduate educational levels have three (3) respondents while only one (1) completed secondary.
- Four (4) respondents are salaried-employed while three (3) are self-employed.
- The average income of three (3) respondents is HKD10,001-20,00 while two (2) earns HKD20,001-40,000 and one (1) earns over HKD40,001.
In relation to the individual questions present in the survey questionnaires, the following are the results:
- Twenty-eight (28) respondents have access to the internet or the WWW in the past six (6) months while two (2) says otherwise.
- The 28 respondents who have access to the internet for the past six (6) months stated that they are using the internet or WWW for more than two (2) years.
- With the 28 respondents who have access over the internet in the past six (6) months, nineteen (19) respondents reported that they do it everyday, three (3) for 1-3 times per week, and six (6) for 4-6 times per week.
- From the 28 survey respondents, ten (10) of them said that they spend less than one (1) hour in browsing the internet. Other 11 respondents spend 1-2 hours, three (3) for 3-5 hours, and four (4) for over five (5) hours.
- From the various reasons on why people browse the internet, ten (10) individuals selected three reasons, nine (9) for one reason, one (1) for five reasons, seven (7) for two reasons and three (3) for no reason at all. On the provided reasons, the search of information (e.g. job search) ranked first followed by entertainment (e.g. booking cinema ticket), online purchasing, hotel reservation, and others ranked second, third, fourth, and fifth respectively.
- Of the 30 respondents, seven (7) people affirmed that they made online book purchase while twenty-three (23) of them said no.
- For respondents who answered NO, there are several reason presented on why they do not purchase book online. From the variety of reasons, nine (9) selected 1 reason, six (6) selected 2 reasons, five (5) selected 3 reasons, two (2) selected 4 reasons, one (1) selected 5 reasons, and seven (7) made no selection. Among the reasons identified are the following: worry about the security of information (e.g. credit card); worry about the misuse and exposure of personal particulars; worry about the problem of return policy and products; high expenses of shipment cost; time lag between ordering and receiving products; and others.
- For YES respondents, three (3) respondents reported that they engaged in online purchase for their selves and family last month. Other three (3) said they purchase online for the last six (6) and one (1) for 12 months respectively.
- For the seven (7) people who purchased books online, they like to browse the following websites: Amazon.com; Ebay.com; Google; YesAsia.com; Yahoo; and Others. They are also asked to select more than one website. The following are the obtained result: four (4) selected one item and three (3) selected 2 items and among the preferred site, Amazon.com topped the list.
- The following are the reasons on why the YES respondents purchased online: More of choice of book categories and language; Lower cost; Convenience and time saving; Getting a book fast than the local bookstores; Web site promotions and offers; Comments of other editors, friends or family relative; and Others. The main reason found was because of convenience and time saving followed by more choice of book categories and language, lower cost, and website promotions and offers.
- In terms of number of books purchased online, three (3) respondents purchased one book only while four (4) bought two-four books.
- In terms of amount spent, four (4) respondents said that they spent under HKD500 for online book purchasing. Two (2) spent HKD501-1,000 and one (1) spent HKD1,001-1,500.
- The following methods were used as payment method: Credit card (i.e. Visa/Master); Paypal; Bank transfer; Cash on delivery (COD); and Others. Among these payment method, the survey result revealed that most of the people who purchase online use credit card (like Visa/Master), through PayPal, and cash on delivery (COD).
On the level of satisfaction, the following results were exclusively focused on the seven (7) respondents who made online book purchase. On the scale of 1 (very dissatisfied) up to 7 (very satisfied), the level of satisfaction is measured. The following results are obtained:
- The overall online experience in the purchase of book – SATISFIED as two (2) individuals in each of the 4, 5, and 7 points proved and one (1) for the 6 point level of satisfaction.
- The delivery service – SATISFIED as three (3) people in rated it 4 and 5 while one (1) rated it 6 point in the level of satisfaction.
- The web site design of the online store – SATISFIED as six (6) respondents rated it 4 and 5 point respectively and one (1) for 6 point level of satisfaction.
- The quality of books you purchased online – SATISFIED as two (2) rated it 4, three (3) rated it 5, and one (1) rated it both 6 and 7 point level of satisfaction.
- The security of information – SATISFIED as three (3) rated it 4, two (2) rate it 5, and one (1) rated it for both 6 and 7 point level of satisfaction.
- The payment information of online purchasing experience – SATISFIED as two (2) rated it 4, four (4) rated it 5, and one (1) rated it 7 point level of satisfaction.
- The shipping cost of online purchasing experience – DISATISFIED as one (1) rated it 1, one rated it 3, two (2) rated it 4, and three (3) rated it 5 point level of satisfaction.
LIMITATIONS
There are problems associated with the research. One is the fact that people often find it very difficult to explain their behaviour or their motivations. Another problem is that many people are reluctant to tell what makes them do what they do. Sometimes the respondents will try to guess their answers. On other occasions, respondents may give answers that they believe are true but are simple versions of the true reasons.
The main limitation in this research is the inability of the questionnaire to address some important factors. The survey questionnaire failed to deal with particular factors, thus resulting to none. Questions are not focused on what the research is trying to find out. The hypotheses are not incorporated in the creation of the survey questionnaire.
Meanwhile, the research topic is psychological in nature. Thus, it is imperative to use attitude questions that will measure the degree of agreement or disagreement to a statement. However, the researcher did not anticipate this consequence.
Time is also a limitation. It is deemed that a reliable research study requires adequate amount of time ranging form six (6) months to one (1) year. Specifically, the subject of this research falls categorically on psychology and sociology of consumer – behaviours and intentions, thus, it really needs longer duration. The researcher is not directly associated with these fields instead more on the technical and operational application of computer and internet technologies.
CONCLUSIONS
After having done the required methods and procedures, the researcher has drawn the following conclusions. This study found out that Hong Kong people are already familiar with the application of internet and its related applications. The respondents are very much aware of the benefits brought about by this medium. With the results obtained from the survey questionnaires, socio-demographic profiles like age, gender, educational attainment, occupation and income do not significantly affect the behaviour and intention of online consumers.
In terms of past experiences particularly the positive ones, online consumers consider this as important deciding factor on whether or not purchase products (like books) and other services online. Furthermore, a consumer young or adult in nature is capable of doing business online granted that they have adequate knowledge on internet technology. Also, the personal needs, purposes or motives as well as intentions of the consumer are among the strongest factor that convinces them to engage in online shopping experience.
The research found out the online purchase of books is not yet a common practice among Hong Kong population. Out of 30 respondents, only seven (7) affirmed that they bought book or books online. However, the number of the respondents used in this research is not the total population of the region. Thus, it is very much necessary to consider another exploration using a larger sample population.
RECOMMENDATIONS
Based on the results obtained in the course of the study, the researcher believes that it is imperative to recommend the following:
- Consumers must be well informed with the included operations and procedures when doing online purchase. In book purchasing, consumers must be knowledgeable on what they really needs and where to get this.
- Online book purchasing must be endorse However, it is very much important to educated people on the facts about online book purchasing especially on the current issues affecting the process.
- Consumers must realize the possibilities and limitations that the internet and online marketing has. Personal responsibility is a must.
- Consumer behaviour varies. Measuring it is a complicated process. Thus, it is recommended that a case study method must be conducted.
- The researcher suggests keeping in touch with the trends of new media innovations and continually examines how these affect the flow of processes not only in online marketing but also to all areas where internet technologies are functional.
- Policies and laws must be established by management of online stores especially in addressing the problems encountered in the process – from purchasing to delivery of products or services purchased.
- The setbacks of online marketing will be minimized if not totally eradicated by conducting more research and development initiatives that are both beneficial to the consumers and the company. Continuous human research and development should be done in order to define what technology need and do not need.
- Supplementary researches must be conducted in relation to consumer behaviour and attitude towards online marketing and theories and concepts to be used should focus on psychology and social theories. Future researchers should incorporate in their studies a more intensive discussion of further advantages, disadvantages, challenges, and opportunities that are bound to arise in online marketing.
- The transformation process from traditional to IT-based shopping experience is worth the scrutiny. Just how does really consumers go through the process is also an interesting matter to look at.
- It would be also advantageous for a study with the same vision be done; however, it would be beneficial to use a more detailed questionnaire or focused on attitude response. The use of statistical tools is also recommended.
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