Topic Presentation for Internet-based e-shopping and consumer attitudes: an empirical study
(No. A9517509~12)
Agenda
1. Author
2. Introduction
3. Consumer attitudes and Internet-based e-shopping
4. Research methodology
5. Empirical results and interpretation
6. Conclusion
7. References
8. Question time
1. Author
＊Ziqi Liao - Associate Professor in the H.K. Baptist University
＊Michael Tow Cheung - Associate Professor in the School of Economics and Finance, University of H.K.
Publisher
＊ Information & Management –
The International Journal of Information Systems Applications
2. Introduction
Aim:
Variables showing consumer preferences and shifts on the success or failure of B2C (Business to consumer)
e-commerce over the Internet
Consequences in Internet transaction costs, payment, logistics, communications and asymmetric information
Regression analysis: initial willingness -- the life content of products, transaction security, price, vendor quality, IT education, and Internet usage
Result:
* introducing B2C in socio-geographically
and technologically situations
* focusing the importance in shopping experience and quality of
e-vendor service
3. Consumer attitudes and Internet-based e-shopping
3.1. Transactions security
It has received considerable attention, in theory and practice
Both on the form of:
Directly
*Safe and accurate transfers of money
*Payment-credit information
Indirectly
Risks-transaction costs
Examples:
-Fraud-free electronic shopping—UK
-SET (secured electronic transaction) –Europe and Singapore
3.2. Price
1. Direct price of e-shopping over the Internet
Before e-shopping consumers must pay for:
Purchase the necessary computer hardware, software or provide for future updating and replacement
*By strict accounting principals, fixed cost is including in any e-purchase
*The price used in the survey and interviews—retail price
*Effect of the set-up outlay are parameterized in consumption superiority
2. Computer products & Internet account fall with technical progress and competition
consumers more attracted by e-marketplace
3.Reduction in set-up outlay
produce a positive effect on Internet-based virtual retailing in Singapore
3.3.Shopping experience
*Touch-and-feel type /organic experience –under these circumstances
*It was important to discover whether consumer perceived at the outset that virtual shopping over the Internet engender a comparable experience
and how significant life content considerations tended to affects decisions to shop in this way.
3.4. Vendor quality
Effort to improve
*Variety in the choice of products
*Ease of placing
*Altering & canceling orders
*Efficient handling of returns & refunds
3.5 IT education and Internet usage
*The question: did more IS-IT knowledge make consumers more likely to e-shop over the Internet?
*The individual’s level of Internet usage can conveniently be measured by the frequency of access and the duration of each access.
3.6. Network speed
Ease of use in the form of higher network speed
Constitute a significant determinate at the outset
4. Reserch methodology
Standard approach – measure consumers perceptions and Likert-type scale --Leave out a latent nature
Restrict to Internet users in Singapore --312/1000 (meaningful respond / individual)
Contents framed with
*Internet logistics,
*Communications,
* Payment costs tended to remain small and constant over the relevant duration
Microsoft Excel & SPSS –data analysis
Brel Software Private Ltd., MOG/ TV-media—interview with
All company above actively involved in developing promoting in B2C commerce in Singapore
5. Empirical results and interpretation
We employed a regression model to quantify the effects of the identified factors on the initial willingness of Singaporeans to e-shop on the Internet:
y= b0+ b1x1+ b2x2+ b3x3+ b4x4+ b5x5 + b6x6+ b7x7 + u
The dependent variable measures consumer willingness.
The independent variables are,
x1: perceived risks associated with transactions security in Internet-based e-shopping;
x2: level of education and training in computer applications and IT;
x3: representative retail price on the Internet e-market;
x4: consumer perceptions of the relative life content of Internet-based e-shopping;
x5: perceived quality of Internet e-vendors;
x6: level of Internet usage;
x7: network speed.
Ordinary least squares (OLS) regression results :
y= 2.48 –0.22x1 +0.38x2 –0.10x3 –0.42x4 +0.45x5 +0.25x6 +0.02x7
Since the first six independent variables yield significant P-values for their coefficients, the corresponding factors were found to be major determinants of the willingness of the Singaporean consumer to e-shop on the Internet.
We offer the following conclusions and interpretations with regard to Singaporean consumer attitudes towards Internet-based virtual retailing at the outset.
(i) Transactions security is a significant factor, with perceived transaction risks exerting a negative effect on willingness (b1 = -0.22, P less than 0.01). If these risks increase, consumers would become more reluctant to post-credit information over the Internet. If payment were more secure, Singaporean consumers would be more receptive towards Internet-based e-shopping.
(ii) If price rises, willingness to e-shop declines (b3= -0.10,P less than 0.01). A change in price produces only a slight effect.
(iii) Since set-up outlay does not enter explicitly into the regression equation, its effects are parameters in terms of the consumption superiority of Internet-based e-shopping. The positive sign for the constant coefficient (b0= 2.48, P less than 0.01) is consistent with this hypothesis. The result follows that as the number of individuals able to support set-up outlays increases in Singapore, willingness to e-shop over the Internet would increase.
(iv) Concern about the life content of the products virtually marketed over the Internet was found to have a negative impact on willingness (b4= -0.42, P less than 0.01).
(v) Willingness to e-shop on the Internet was found to be positively related to consumer perceptions of e-vendor quality (b5= 0.45, P less than 0.01). This suggests that increased convenience and promptness of purchase, more dedicated after-sales service. Singaporeans attracted by higher quality e-vendor services would therefore feel safe about purchasing without worrying about ``lemons''.
(vi) The regression result b2 = 0.38 (P less than 0.01) suggests that the more Singaporeans are educated in computers and IT the more they would be willing to e-shop over the Internet.
(vii) The regression result b6 = 0.25 (P less than 0.01) show that Singaporeans who access the Internet more often are more willing to e-shop on it.
(viii) The regression result b7= 0:02 (P =0.42) indicates that higher network speed is not a significant determinant of the initial willingness of Singaporeans to e-shop on the Internet.
6. Conclusion
Analysis: the initial effects and relationships between consumer attitudes and Internet-based e-shopping
Aim:obtain a theoretically and empirically grounded initial reference position
Statistics: - the life content of products - Transactions security - Price - Vendor quality - IT education and Internet usage affect the initial willingness of Singaporeans to e-shopping over the Internet
Generalization: virtual retailers in socio-geographically and technologically similar situations and locations may wish to consider the findings
The quality of e-vendors: * lemon problem * the need for an independent agency
References http://www.ugr.es/~focana/dclasif/artiRegre.pdf
http://zh.wikipedia.org/w/index.php?title=%E9%A6%96%E9%A1%B5&variant=zh-tw9%A1%B5&variant=zh-tw
http://www.elsevier.com/wps/find/journaldescription.cws_home/505553/description#descriptionome/505553/description#description
Question Time
1. What are the direct attention on transactions security?
Answer: Safe and accurate of money, payment-credit information.
2. What is the initial willingness of Singaporeans to e-shop on the Internet according to the regression analysis?
Answer: The life content of products, transaction security, price, vendor quality, IT education and Internet usage.
3. Which is not a major determinant of the willingness of the Singaporean consumer to e-shop on the Internet?
(a) perceived quality of Internet e-vendors
(b) level of Internet usage
(c) network speed
Answer: (c)
