Factor Influencing the Consumers' intention to Purchase Online - Essay Example

?Consumer Behaviour Analysis CHAPTER INTRODUCTION 0 Introduction The first chapter will throw a light on the background and range of the researchwork. It will also implicitly emphasize the purpose, endeavour, rational and precis of the investigation. 1.0.1Research question What is the underlying driving factors influencing the purchase decisions of Thai customers in the online retail business? 1.1 Background Internet facility has helped individuals to communicate freely ignoring all the geographical barriers. In the modern world buyers communicate with different marketplaces and firms online. (Gay et al., 2007). E-commerce is at its zenith in the modern age, when almost all the consumers are actively participating in online shopping. Shopping in the digital marketplaces has given rise to a new dimension to many businesses (Demangeot and Broderick, 2007). The method and pattern of online shopping is way different from the traditional approach of shopping. The difference in online and non online business transactions generates maximum impact on consumers, thus it is important to analyze consumers online buying decisions. E-commerce shows that this business pattern does not abide by the rules of traditional consumer behavior. Thus, it becomes an important task for all the internet retail firms to evaluate the factors that determine the consumer purchase decisions in the online markets. With the help of knowledge of such a research, the online retail business firms would be able to formulate efficient strategies by which they would be able to attract potential customers in the e-markets. In the habitual business dealings, the buyers are physically present at the time of purchases. They empirically observe the final goods or services before they actually make the purchase decisions. However, in the course of online purchases, the buyers are only able to see the products virtually in the web pages. Thus, the distinguishing aspect of online purchase decisions provides high enthusiasm to the sellers, who desire to understand whether such modes of business would affect them positively or adversely. The literature review depicts the various empirical and theoretical studies that focus on the consumer purchase intensions in the online retail markets. It is found by Goldsmith and Goldsmith in 2002 that most of the individuals who have used internet facility to shop have trust in the process. The consumers who make purchases over the internet are generally more risky lovers that the consumers who avoid online transactions (Donthu, 1999). In the modern era online retailers have found ways to gain customer loyalty in their business transactions (Papadopoulou et al., 2001). Problems regarding security are primary, when it comes to online selling. If this problem is eliminated then most of the consumers are estimated to go for online dealings (Udo, 2001). It is believed that online business would improve if the businesses firms can make consumers believe that their websites are protected (Fenech and O’Cass, 2001). It is empirically found that the Thai consumers are highly attracted to such new modes of shopping destinations. Thus, at this juncture it is rational to study the underlying factors that determine the online purchase intensions of the Thai customers. 1.2 Rational The research aims to analyze the consumer behaviour of Thailand at the stand of online purchases. The study will focus in the consumers of Thailand altogether, it will include the ones who make online purchases and also include the ones who never go to the digital market places. The underlying motivating factor for this research work is the massive population strength of Thailand, which accounts for almost 67 million. In 2011 it has been estimated that the percentage of internet users have increased to almost 27.4% in Thailand. The total number of internet users was 2300000 in 2000, which increased to approximately 178310000 in 2001. Moreover, it is also estimated that the aggregate rise in internet usage has augmented by almost 660.3% (Internet World status, 2011). There has also been a significant rise in the number of Thai shoppers in the online retail market. The National Electronics and Computer Technology Centre in 2013 have declared that the percentage of Thai online shoppers have increased to 57.2% in 2011 from 47.8% in 2008. The Siam Commercial Bank (SCB) has estimated that by 2015 almost 8% of the national growth would be sustained by the online retail sector. It is also analyzed that the confidence in e-payments, trend of e-commerce and diversity of online products would perk up over time. The grand values of e-business have increased from BT527.5 bn ($16.83 bn) to BT595 bn ($18.98 bn) from 2008 to 2010. 55% of such returns came from the business to government trading, 36% came from business-to-business dealings and 9% from business-to-consumer trading (National Statistics Office, 2013). Thus, the rise in the number of internet users fetches more attention of the business firms in the online financial trading bustle (Brietenbach and Van Doren, 1998). With the rapid enhancement of technology and marketing sensitivity, retail industry have found e-business as one of the most modern approach to cater consumers requisites. The above mentioned numerals clearly defines that the number of online consumers in Thailand are high, so it is worthwhile to study the factors that influence such initiatives of Thai consumers. Online line marketing in Thailand is a key important aspect of study in such circumstances. Online business a significant stream that is likely to facilitate the growth of an economy. The study may be used by the online selling retailers to develop effective marketing strategies in Thailand. Academicians and marketing agencies can only use the find outs of the research to work more efficiently in improving online trading transactions. 1.3 Aim and Objective 1.3.1 Aim: The aim of the study is to analyze the underlying driving factors influencing the purchase decisions of Thai customers in the online retail industry. 1.3.2 Objective: To understand the consumer behaviors towards online buying in the retail market of Thailand. To analyze the factors that influence Thai consumers online purchase decisions. Implicitly emphasize the effectiveness of e-marketing towards Thai buyers. The study also enumerates the percentage of Thai consumers who desire to shop online. 1.4 Precis Chapter 2 of the research paper comprises the literature review. This encompasses the various theories of consumer behaviour and decision making phenomenon in the online retail business. Chapter3 comprises the methodology of the thesis. This context enumerates the mode of data collection and the diverse paradigms used in the research work. Chapter4 is the section where the study analyzes the data with graphs and tables. Chapter5will contain the further analysis and discussions of the study. It will also contain the various recommendations and limitation of the paper. Read More