Online purchasing continues to grow in size and has a significant impact on the commercial environment. This project explores the factors influencing internet purchases of goods.

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1.  Introduction

1. 1 Problem statement

Online purchasing continues to grow in size and has a significant impact on the commercial environment. This project explores the factors influencing internet purchases of goods.

                                                   

1. 2 The relevant literatures

Purchasing online can have many advantages over the old-fashioned way of doing things. The convenience is a primary motivation to consumers purchasing online. During the Christmas holiday season, more than half of the Internet purchasing done by America online Inc.’s members occurred after 10 pm, when most traditional stores are closed (Quick 1999). Many Internet users are expressing serious concern regarding the lack of security in online business environments. Research suggests that security is a critical factor in influencing the consumers’ willingness to make purchase online (Brendon 2002).

1.3 The theoretical framework

In this theoretical framework, the dependent variable is consumer purchasing on the Internet. There are five independent variables namely, security, price, convenience, brand loyalty and control.

Firstly, the higher level of security exists over the Internet, then the greater number of consumer purchasing on the Internet, because consumers are not anxious about the risk through the online purchasing. Secondly, if consumers find price cheaper to purchase online financial service than traditional purchases, then the number of purchasing online increases. Moreover, as convenience level rises, the consumers tend to purchase on the Internet as well, because consumers can purchase easily without any time or geography restrictions. Also brand loyalty correlates consumers purchasing on the Internet. If consumers emphasize brand loyalty, it will increase proportion of they purchase goods online in the future. Finally, the consumers perceive higher level that they are in control during shopping online, and they are willing to enhance purchasing online.

The study of consumer online behavior has shown that attitudes toward the Internet are related to online purchasing (Goldsmith 2000). The positive relationships exist between consumer purchasing on the Internet and five independent variables. These relationships are illustrated in diagram

Independent variables                           Dependent variable

1.4 Research questions

  • Which is the largest factor that influences consumers to purchase goods on the Internet?
  • Do heavy Internet users (using more than 25 hours per week) influence by different factor comparing with light Internet users (using less than 5 hours per week)?  

1.5 Hypothesis

  • If consumers purchase online, they will influence mostly by the factor of convenience.
  • If consumers are the heavy Internet users, they will consider price much than the light Internet users.

2.  Methodology

2.1 Research design

Its major purpose is to gain an understanding of the factors that influence consumers purchasing online. Survey-based methods are used to collect information regarding the characteristics of internet purchasers and the factors influence their purchasing on the Internet.

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2.2 Data collection methods

The data came from a survey of 250 students at University of Queensland. The students were in either studying undergraduate or postgraduate courses. Personally administered questionnaires was adopted on this survey. The reason for using personally administered questionnaires is that ‘the researcher can collect all the completed responses within a short period of time. Also the researcher has the opportunity to introduce the research topic and motivate the respondents to give frank answers’ (Cavana, Delahaye & Sekaran 2002:307).

2.3 Data collection procedures

The researcher went to the cafeterias in University of Queensland ...

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