Today, internet is not only a networking media, but also as a global medium in speedily gaining interest and popularity as the most revolutionary tool for marketing and becomes dominant retailers in the future. Internet is a worldwide collection of a computer networks that will links millions of computers. Using TCP/IP protocol it will connect a computer to any other computer anywhere in the world using dedicated routers and servers and the computer connected with the internet can send information such as text, graphic, video, and computer programs. According to statistic report (refer appendices Figure 1.1) by the Internet World Stats, internet usage has grown rapidly over the past year from year 2000 to year 2010. (Malaysia Internet Usage Stats and Merketing Report, 2000 - 2010). From the report, it’s show the increasing of internet usage in Malaysia. In year 2000 it was only 3,700,000 and increase about 13202600, finally become 16,902,600 in year 2010. According to ACNielsen (2007), more than 627 million people in the world have shopped online. Forrester (2006) research estimates e-commerce market will reach $228 billion in 2007, $258 billion in 2008 and $288 billion in 2009. By 2010 e-commerce will have accounted for $316 billion in sales, or 13 percent of overall retail sales. (E-Commerce, 2003 - 2012). Based on the report, the most popular items purchased on the Internet are books (34%), followed by videos/DVDs/games (22%), airline tickets/reservations (21%) and clothing/accessories/shoes (20%). We can conclude that from the research, many people have used the online shopping services to buy any product through the internet. This is an advantage for many companies to make money and believe that there is money to be made as soon as the internet becomes popular. Basically, online shopping is the act of purchasing products or services over the Internet. Online shopping has grown in popularity over the years, mainly because people find it convenient and easy to bargain shop from the comfort of their home or office. Online shopping is becoming more and more widespread and accepted due to these many conveniences. One of the most enticing factor about online shopping, particularly during a holiday season, is it alleviates the need to wait in long lines or search from store to store for a particular item. As customers are already on the Internet, they can search for any product reviews. But to convince the consumer to shop online is still a challenging task for the web retailer. The retailers and marketer will have to facing a challenge to study the factors that might be hindering consumer to shop online. 2. PROBLEM STATEMENT & QUESTIONS
Online shopping in Malaysia can be considered as a new pattern since it has been exposed to the customer and retailers in Malaysia. According to the report on Oriental Daily News (yes, the no.4 Chinese Daily) it presenting updated stats from IDC more than 8 million Malaysians which is half of the internet population have actually bought something online. (Malaysia's E-Commerce Statistics). More than 8 million Malaysians (half of our internet population) have actually bought something online. No doubt, most of the numbers are contributed by the airlines and whether online financial activities, bill payments also are included as well.
A recent survey conducted by The Nielsen Company on online shopping habits reveals that about 30% of Malaysian Internet users have conducted online purchases. (SEONG, 2009). The survey was conducted on 500 Malaysian Internet users. Of the items purchased online, airline tickets and reservations was the top list at 55%, followed by tour or holiday reservations at 41% and computer hardware at 22%. The other 21% of the surveyed Internet users purchased books online and 18% used the Internet to buy event tickets.
. This research need to be conduct because there is issue that arises about the factors influencing customer’s towards...