Examine the Online Shopping Behavior Among Students

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CHAPTER 1
INTRODUCTION

Nowadays, Internet is not only a networking media, but it is also used as a means of transaction for consumers at global market. The Internet is becoming popular in Malaysia, as it is a virtual place where people share their ideas, build communities, shape the future democratically, and promote a new way of doing business. The Internet is the world’s biggest shopping mall that allows enterprises to do their business with low cost involved, yet covering global market. The usage of Internet has grown rapidly over the past years and it has become a common means for delivering and trading information, services and goods. According to the survey by A.C.Nielsen (2007), more than 627 million people in the world have done online shopping. Forrester (2006) anticipated that e-commerce market would grow from $228 billion in 2007 to $288 billion in 2009. Likewise in 2004, researchers were aware online retail sales in the US that were US$65 billion in 2004 would rise to US$117 billion in four years by 2008. Further, in 2005, it was anticipated that by 2010 e-commerce would account for US$316 billion in sales; that is to say, 13 percent of overall retail sales; therefore, 61 percent of online users in the US would make purchases via internet in 2010, compared with just 46 percent in 2004 (Jupiter Research Survey, 2005). A research by Gardyn (2002) reported that University Students, a population 90 percent of which access the internet daily, spends about $200 billion a year in the buying power to the US market, with an average student’s available discretionary spending totalling to $287 each month. Due to the students’ purchasing power in the marketplace, it is critical for e-retailers and consumer behaviour marketers to fully understand the attitude of this particular population towards online shopping. In the Malaysian context, with the expansion of educational services, university students have become common consumers of market segments (Sabri et al., 2008). A large body of research is available on the online shopping in the world. However, there is still a need for closer examination on the online shopping buying behavior in specific countries (Bobbit & Dabholkar, 2001; Goldsmith, 2002; Salisbury et al., 2001). Considering that internet shopping is still at the early stage of development in Malaysia, little is known about consumers’ attitudes towards adopting this new shopping channel and factors that influence their attitude (Haque, Sadeghzadeh, & Khatibi, 2006). The consumers’ attitude towards online shopping is known as the main factor that influences their online shopping attitude (Cheung & Lee, 2003; Goldsmith & Flynn, 2004; Shwu-Ing, 2003; Wolfinbarger & Gilly, 2001). Attitudinal issues are also thought to play a significant role in e-commerce adoption; that is to say, through motivation and perception, attitudes are formed which, in turn, directly influence decision making (Haque et al., 2006). Therefore, understanding consumer attitude toward online shopping helps marketing managers to predict the online shopping rate and evaluate the future growth of online commerce. This paper first examines the relationship between consumer factors and attitude toward online shopping, and then analyzes the factors that influence attitude toward online shopping. The main aim of this study is to investigate online shopping behavior and attitude among University Malaysia Pahang students, with a particular emphasis on understanding an evaluating the factors which directly or indirectly influence the attitude towards online shopping.

1.1Research Problem

Online shopping in Malaysia is a new technology breakthrough since it has just begun to assault the Malaysia retailing sector with online shopping services (Haque et al., 2006). In order to increase online shopping in Malaysia, understanding consumer online shopping behavior and factors influencing this behavior when shopping online should...
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