Drivers & Barriers of Internet Shopping

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Drivers and Barriers of Internet Shopping

TABLE OF CONTENTS

Executive Summary3
Chapter 1: Introduction4
Chapter 2: Literature Review6
2.1 Uses of The Internet………………….6
2.1.1 Electronic Mailing (e-mail)6
2.1.2 Instant Messaging (IM)6
2.1.3 Browsing6
2.1.4 Internet Shopping6
2.2 Internet Shoppers………………….8
2.3 Drivers and Barriers…………………11
2.3.1 Product/ Website Characteristics12
2.3.2 Customer Satisfaction13
2.3.3 Price13
2.3.4 Convenience14
2.3.5 Usefulness14
2.3.6 Enjoyment14
2.3.7 Trust15
2.3.8 Risk15
2.3.9 Security15
2.3.10 Privacy16
2.4 Internet Users' Behavior in Egypt.16
2.5 Research Questions……………….18
Chapter 3: Research Methodology20
3.1 Research Design…………………….20
3.2 Study Sample……………………..22
3.3 Study Boundaries………………….22
3.4 Data Analysis…………………….23
Chapter 4: Results and Conclusion24
4.1 Descriptive……………………….24
4.2 Research Questions Testing Results26
Chapter 5: Recommendation34
5.1 Managerial Implication…………….34
5.2 Directions for future research………..35
References37
Appendix A: Questionnaire40
Appendix B: Tables44
Declaration48
Executive Summary

Electronic commerce is becoming very popular nowadays in shopping that some internet users prefer it over other shopping channels for the various advantages it holds for them. This paper will discuss the drivers and barriers of internet shopping. The aim of this paper is to study the case of Egypt with respect to internet shopping, and to investigate how the Egyptian consumers perceive it. The study examines the difference between shoppers and non-shoppers with respect to age, occupation, income level, education, gender and marital status. It also studies the important factors affecting internet users shopping decision as well as the different activities performed online. The difficulties faced during the purchasing process will be discussed and the possible solutions will be proposed as well as the motives for non-shoppers to shop online. The study was conducted using a survey in the form of a questionnaire distributed among 131 participants. Using the suitable statistical analysis, the responses showed that there were 50 shoppers and 81 non-shoppers in the studied sample. The study revealed that the main problem for internet shoppers in Egypt was concerned with safety and security issues. The results did not show any demographical differences between shoppers and non-shoppers, which could be attributed to limited representation of the studied sample. The study provided useful information about the Egyptian internet users' perception of online shopping and paved the road for further studies in this regard. Chapter 1: Introduction

In the recent decade, the internet is very widely-spreading allover the world. Heinen correctly indicates that "The Internet (the Net) will be more than simply a market place for conducting transactions; it is evolving into a new medium for communication and interacting with customers and thus will affect the roles that marketing professionals play in their businesses" (Heinen, 1996, p.7). A new term introduced to the field of commerce, is electronic commerce. Wikipedia – an electronic encyclopedia – defines electronic commerce (EC, e-commerce) as consisting "primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks" ("Electronic Commerce", 2006, para.1). "Electronic commerce has become one of the essential characteristics in the Internet era" (Li & Zhang, 2002, p.508).

The literature has provided outstanding statistics concerning the expansion of e-commerce. "There are an estimated 300 million world-wide Internet users, and nearly 120 million of them have already made an online transaction" (Shiu & Dawson, 2002, p.147) "The online shopping...
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