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Factor influence consumer

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Executive summary

This marketing research assignment present a brief analysis of the factor influence consumer behavior toward online shopping. This research assignment would present the research background, research objective and analysis data of research. This research observes how product quality, e-service quality, online advertising and delivery service quality could contribute consumer behavior toward online shopping.

Keywords: online shopping, product quality, service quality, online advertising, delivery service

Introduction

Online shopping is a form of electronic business, which differs from traditional way of shopping. Nowadays, more and more people are using shopping online. Malaysia has about 22 million active Internet users and 68 percent of the population. Mobile phone penetration in the population is extremely high, with nearly 150 mobile phones per 100 people. Of those users, 53 percent use smartphones. In 2017, online sales of products-only products growth to USD $1.12 billion/ RM4.99 billion, accounting for 20% of the total size of the Malaysian e-commerce market (export.gov, 2017). This research are based on examine the factor influencing customer to shop online by JD Sport in Malaysia.

Research background

JD Sport Fashion plc, as known as just JD or JD Sports. JD is a sports fashion retail company, and it headquarters in Bury, Greater Manchester. In 1981, JD Sport was established by John Wardle and David Makin. Nowadays it has more than 800 stores covering by international sports brands and branded fashion such as Nike, Adidas, Puma and Reebok. In addition, JD Sports has developed into the most creative sportswear brand with the best, most exclusive and most fashionable sports brands (jdsportsfashionplc, 2017). JD Sports also provide their own website and APP for consumer to shopping online. This research are based on examine the factor influencing customer to shop online by JD Sport in Malaysia.

Todays, online shopping become larger due to the improvement of technology needed. Consumer are more and more likely to attach to online business, especially to the social networking. Consumer chooses online shopping because it is quite convenient and cheaper. Online shopping can save consumer’s time and money in some way. This research are based on examine the factor influencing customer to shop online by JD Sport in Malaysia. There are some factor may affect consumer to shop online such as product quality, service quality, online advertisement and delivery service (Wang & Sun, 2010).

General objective

The general objective of this research is to identify the factor influence consumer to shop JD sports online in Malaysia.

3.0 Literature Review

Online shopping is the process of purchasing products and service from business with internet. Compare with traditional shopping, online shopping is more time saving and more convenient. Consumers can express their opinions conveniently on the website, including the quality, price and the style of the product, the service of the website and the online sellers and the delivery speed (Chen, 2012).

Independent Variable

Product quality

The product and e-service quality is an important role in online shopping. When customer choose the products in JD Sports website, the product quality would be the first consideration. If the product quality is not good, customer will give up to purchase because when customer online shopping the product quality cannot to be ensure. Online shopping is different than traditional shopping because customer traditional shopping can face to face with the sales person and touch the real product but online shopping cannot.

Online service quality

The online service quality is also an importance role in online shopping. Online service quality also known as E-service quality refers to consumers’ perceptions of e-store’s performance and effectiveness in products and services (Ha & Stoel, 2017). The e-service quality is extend to the e-business providers effectively and efficiently to contact their customer interaction such as searching, shopping and purchasing. E-service quality is become importance element in website to achieve business goal (Carlson & O’Cass, 2010). The e-service quality may affect consumer satisfaction and loyalty.

Online advertising

Second is online advertising, they are most commonly used techniques to affect consumer behavior. Advertising that is done through the internet is known as online advertising (Parera, 2018). Nowadays, advertising in internet has become an essential way of revenue for e-commerce business (Carlson & O’Cass, 2010). Online advertising is also known as social media marketing, it is use of social media channel and website to promote their product and service. JD Sports can use online advertising to increase sales such as Facebook advertising, Instagram adverting and google advertising. Online adverting can made close between consumer and company. When customer see the online advertisement they will search for product on the company website. So that, online advertising can influence consumer behavior for shopping online.

Delivery service

Third is delivery service, delivery service is sending products to customer over the internet order. Online purchase is different with traditional because customer cannot get the product right now after purchase, in online purchase customer should wait for the deliveryman to delivery their product. So that, delivery is an importance part of online shopping JD Sports must be corporate with strong delivery company for delivery service.

Theoretical framework & Research framework

The model that will be using in this research is Technology Acceptance Model (TAM) by Davis. In this model, the acceptance of a new technology by a user is based on two factor which is perceive usefulness and perceived ease to use. Perceive usefulness is refer to how much the person believe that by using particular system to improve the job performance. For online shopping, consumers have their expectation of desired results and results to meet their expectations. Perceive ease of use is refer to what the individual’s perception that using the new technology will be free of effort (Bahrain, 2018). In online shopping, ease of use also can be define as the enjoyment of the user by internet and also consist of the strong predictor of the attitude.

Research framework

According to figure 1, we can see the independent include product quality, e-service quality, online advertising and delivery service may affect the dependent variable which is consumer behavior toward JD Sports website.

Consumer behavior toward JD Sports online shopping = product quality, e-service quality, online advertising and delivery service

Secondary data

Secondary data is previously collected research data that collected by someone other than the user. Secondary data is used to increase the sampling size of research studies and is also chosen for the efficiency and speed that comes with using an already existing resource (Rouse, 2018).

According to the secondary data of (Rouse, 2018) are show the reason of people to shop online. According to the result, save time or convenience, better prices, more selection, easier shipping, ability to find a more personalized gift, more information available about the product and other factor may affect customer satisfaction.

Research Design & Primary Data

The research design method being used in this research is quantitative research. This research consist of few part including questionnaire response rate, respondent’s profile, product quality, e-service quality and delivery service. The population and sample is Malaysia consumer.

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GradesFixer. (2019, March, 27) Factor influence consumer. Retrived November 17, 2019, from https://gradesfixer.com/free-essay-examples/factor-influence-consumer/
"Factor influence consumer." GradesFixer, 27 Mar. 2019, https://gradesfixer.com/free-essay-examples/factor-influence-consumer/. Accessed 17 November 2019.
GradesFixer. 2019. Factor influence consumer., viewed 17 November 2019, <https://gradesfixer.com/free-essay-examples/factor-influence-consumer/>
GradesFixer. Factor influence consumer. [Internet]. March 2019. [Accessed November 17, 2019]. Available from: https://gradesfixer.com/free-essay-examples/factor-influence-consumer/
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