Description
Online shopping enables consumers to search for information and purchase products or services through direct interaction with online store. This study aims to examine the effect of Internet marketing environment, product characteristics, familiarity and confidence, and promotional offers on consumer online shopping behavior.
Abstract—Online shopping enables consumers to search for
information and purchase products or services through direct
interaction with online store. This study aims to examine the effect of
Internet marketing environment, product characteristics, familiarity
and confidence, and promotional offers on consumer online shopping
behavior. 200 questionnaires were distributed to the respondents, who
are students and staff at a public university in the Federal Territory of
Labuan, Malaysia, following simple random sampling as a means of
data collection. Multiple regression analysis was used as a statistical
measure to determine the strength of the relationship between one
dependent variable and a series of other independent variables.
Results revealed that familiarity and confidence was found to greatly
influence consumer online shopping behavior followed by
promotional offers. A clear understanding of consumer online
shopping behavior can help marketing managers predict the online
shopping rate and evaluate the future growth of online commerce.
Keywords—Internet Marketing Environment, Product
Characteristics, Multiple Regression Analysis, Malaysia.
I. INTRODUCTION
HE internet has changed the way people shop and day-to-
day lives. Internet usage has grown rapidly over the past
years and has become a common means for delivering and
trading information, services, and goods [1]. In recent years,
shopping online has become the norm and all over the world
consumers prefer to shop online as it has many advantages [2].
The Internet-based electronic commerce environment enables
consumers to search for information and purchase products or
services through direct interaction with online store. Although,
purchasing online is still a small part of Internet usage, most
analysts expect it will increase dramatically when consumers
feel convinced and secure about their purchases and protection
of their privacy. Internet shopping in Malaysia is in its infancy
[3]. Web-retailers can only offer certain ranges of products
and services to web-shoppers, including e-banking services,
technology gadgets, cosmetics, clothing, and the booking of
airline tickets [4]. The first groups of products are ones
consumers do not need to see personally before purchasing.
Norazah Mohd Suki is an associate professor with the Labuan School of
Business & Finance, Universiti Malaysia Sabah, 87000 labuan F.T., Sabah,
Malaysia (e-mail: [email protected]).
Norbayah Mohd Suki is a senior lecturer with the Labuan School of
Informatics Science, Universiti Malaysia Sabah, 87000 labuan F.T., Sabah,
Malaysia (e-mail: [email protected]).
These products include e-banking services and the booking of
airline tickets. This group of products is suitable for Internet
shopping because the Internet provides transaction and
communication functions. The second groups of products are
items consumers prefer to see and touch before purchasing.
These products include technology gadgets, cosmetics, and
clothing. This group of products is not suitable for Internet
shopping because the images and information about the
product may not be accurate or sufficient for consumers to
perform Internet-based transactions. This study aims to
examine the effect of Internet marketing environment, product
characteristics, familiarity and confidence, and promotional
offers on consumer online shopping behavior.
II. LITERATURE REVIEW
Online shopping has eliminated on the consumer’s side
such traditional shopping inconveniences as battling crowds,
standing in long checkout lines, and fighting for parking
spaces at a busy mall [2]. The customers are able to evaluate
the available products and their prices from a multiplicity of
diverse outlets through the Internet. These comparison-
shopping sites may save customers’ time and money because
they can see which retailer has the best price without visiting
many websites. Thus, it allows consumers to browse online
shopping websites in the privacy of their home [2].
A. Internet Marketing Environment
Internet marketing environment is related to a paperless
environment where a computer is used as a medium to
recognize, reproduce, and store product information that
enable online businesses to be operated without limits anytime
and anywhere in 24 hours a day, 7days a week and 365 days a
year principle [5]. Consumers are free to shop at different
websites and they are able to switch from one website to
another in just a click [2]. Shoppers are more attracted to well-
designed online shopping sites that are easy-to-navigate and
visually appealing. Thus, the website design does influence
shoppers’ purchases [6]. Through a superior understanding of
the web shopper’s online purchase intention, web retailers will
be able to enlarge valuable and efficient web-shopping
strategies to create a centre of attention for new and potential
web-shopping customers [4]. Internet marketing is becoming a
more and more important strategy for the company to
promote, advertise and interact more with online customers.
Consumer Online Shopping Behavior:
The Effect of Internet Marketing Environment,
Product Characteristics, Familiarity and Confidence,
and Promotional Offer
Norazah Mohd Suki, Norbayah Mohd Suki
T
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
413 International Scholarly and Scientific Research & Innovation 7(3) 2013 scholar.waset.org/1999.10/9996983
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With a good understanding of the web shoppers’ online
purchase intentions, web retailers will be able to develop
effective and efficient web-shopping strategies to attract new
and potential web-shopping customers [7]. Therefore, the
study hypothesizes that:
H1. The Internet marketing environment will have a
significant impact on consumer online shopping behavior.
B. Product Characteristics
The product is related to anything that can be offered to a
market that can satisfy the customers’ needs and wants which
include services [8]. In order to provide more accurate
information and a better shopping experience, most of the
online retailers are turning to merchandise that allows
shoppers to interact with the products and examine them
online [9]. Product characteristics are very important in
developing the online business. Besides that, products can
include more tangible objects such as cars, computers or cell
phones, and these products also include services, events,
persons, places, organizations, ideas or a mixture of these [8].
Before the consumers purchase products through the Internet,
they use the Internet as a cue to identify the characteristics and
the brand of a product itself [10]. In order to provide more
accurate information and a better shopping experience, most
of the online retailers are turning to the product virtualization
technology that allow the shoppers to interact with the
products and examine the products online [11]. Thus, it is
expected that:
H2. Product characteristics will have a significant impact on
consumer online shopping behavior.
C. Familiarity and Confidence
Familiarity is related to the amount of goods in relation to
experience that has been accumulated by the consumers [12].
The familiarity of the customer with the computer and the
Internet and frequency and length of his or her usage, were
found to be positively associated with adoption behavior in
general [13]. Kim and Jihyun [9] highlight the importance to
assess the consumer confidence when they going to shop with
the online retailer. When the product familiarity is increased, it
can improve the consumers’ cognitive structures and task
performance as well as their ability to analyze, elaborate and
remember the product information [12]. Familiarity becomes
more important to increase customer satisfaction and it
differentiates between familiar and unfamiliar fields [8]. Thus,
a better understanding of the technology and its operating
processes will definitely alleviate concerns and lead to higher
usage of online shopping [13]. Accordingly, the study
hypothesizes that:
H3. Familiarity and confidence will have a significant impact
on consumer online shopping behavior.
D. Promotional Offer
Promotion is related to a form of strategic communication
to inform, persuade, and remind the potential buyers of a
product in order to influence an opinion or elicit a response
[14]. Promotion can bring benefits to the consumers for
enjoying shopping and searching for information [15]. Sales
promotion, a part of the marketing campaign, consists of a
diverse collection of incentive tools, mostly short term
designed to stimulate quicker or greater purchase of particular
products or services by consumers [8]. Sales promotions
enhance consumer’s number of shopping trips to the store.
Hence, the study posits that:
H4. Promotional offer will have a significant impact on
consumer online shopping behavior.
Hence, the study proposed the following theoretical
framework (Fig. 1):
Fig. 1 Theoretical framework
III. METHODOLOGY
200 questionnaires distributed to the respondents who are
students and staff in a public university in the Federal
Territory of Labuan, Malaysia following simple random
sampling method. All respondents were asked to complete the
questionnaire which comprised of three sections. Section A
consisted of demographic profile which consists of gender,
age, level of education, and monthly income and helps to
identify the group of consumers. While section B examined
the consumer Internet shopping experience. Section C
examined the consumer shopping behavior via the Internet.
All of these questions were measured on a five-point Likert
scale ranging from 1 (strongly disagree) to 5 (strongly agree).
The four factors applied consisted of Internet marketing
environment, product characteristics, familiarity and
confidence, and promotional offers adapted from Haque,
Khatibi, and Mahmud [16]. Statistical Package for Social
Sciences (SPSS) version 17 computer program was utilized in
order to calculate the descriptive analysis. Descriptive analysis
is used to portray the basic features that include means,
variances, standard deviation, and can also evaluate qualitative
analysis of data. These also provide a simple summary about
the measures and the sample. Then, multiple regression
analysis is used. This statistical measure attempts to determine
the strength of the relationship between one dependent
variable and a series of other independent variables. The
advantage of regression is it provides the forecasts and also
explains the variations in the forecast variable in the past.
Consumer
Online
Shopping
Behavior
Internet Marketing
Environment
Product Characteristics
Familiarity and
Confidence
Promotional Offer
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
414 International Scholarly and Scientific Research & Innovation 7(3) 2013 scholar.waset.org/1999.10/9996983
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IV. DISCUSSION OF ANALYSIS
Table I depicts frequency analysis of the demographic
profile of respondents. 122 (61%) of the respondents were
female and 39% males. 77% were aged 21 to 25 years
followed by 11% aged 26 to 30 years. More than half of the
respondents (62%) held bachelor degrees. 11% of the
respondents earned monthly income more than RM 2,001.
TABLE I
DEMOGRAPHIC PROFILE OF RESPONDENTS
Frequency Percentage
Gender
Male 78 39
Female 122 61
Age (years old)
Below 20
10 5
21-25
154 77
26-30
22 11
31-35
10 5
Above 36 4 2
Level of Education
Primary
8 4
Secondary
46 23
Bachelor/Degree
124 62
Master/PhD
22 11
Monthly Income
Less than 1000
144 72
1001-2000 34 17
2001-3000 16 8
Above 3001
6 3
A. Experiences with Online Shopping
Table II describes online shopping experience of the
respondents. 158 respondents have shopped online this year
and 42 respondents have yet to do so. 70 respondents choose
the product itself as the main factor to affect their online
shopping behavior followed by convenience and promotional
offer factors. 88 respondents have shopped online within one
to three years, 84 respondents in less than a year, and 16
respondents shopped online within three to five years. Next,
54 respondents purchased products through the Internet once
every three months, followed by 50 respondents purchased
products through the Internet once every six months and 14
respondents purchased products online once every twelve
months. 72 respondents (36%) spent eleven to thirty minutes
on searching before they found a piece of useful product
information, 52 respondents (26%) spent thirty-one to sixty
minutes, and 16 respondents (8%) spent less than ten minutes
on searching before they found a piece of useful product
information.
TABLE II
FREQUENCY ON PURCHASING WILLINGNESS
Experience Frequency Percentage
Shop online this year
Yes
No
158
42
79.0
21.0
Factors affect online shopping behavior
Web environment
Convenience
Promotional offer
Product itself
22
56
52
70
11.0
28.0
26.0
35.0
Period shopping online
Less than 1 year
1-3 years
3-5 years
More than 5 years
84
88
16
12
42.0
44.0
8.0
6.0
Frequency shopping online
Once a month
Once every 3 months
Once every 6 months
Once every 9 months
Once every 12 months
Never
36
54
50
18
14
28
18.0
27.0
25.0
9.0
7.0
14.0
Time spend searching for product online
Less than 10 minutes
11-30 minutes
31-60 minutes
Don’t know
16
72
52
60
8.0
36.0
26.0
30.0
B. Reliability Analysis
Reliability of measurement was tested using the Cronbach’s
Alpha in order to measure the internal consistency of the
scales [17]. Table III infers that the Cronbach’s alpha values
of all variables were greater than 0.70, implying all variables
are reliable and have high internal consistency. No item
deletion was performed as the reliability for each factor was
high.
TABLE III
RELIABILITY ANALYSIS
Variables Number
of Items
Cronbach’s
?
Consumer Online Shopping Behavior (COSB) 3 0.846
Internet Marketing Environment (IME) 4 0.810
Product Characteristics (PC) 4 0.835
Familiarity and Confidence (FC) 8 0.804
Promotional Offer (PO) 4 0.807
C. Correlation Analysis among Variables
Pearson correlations were calculated to identify the
correlations between the five variables: consumer online
shopping behavior, Internet marketing environment, product
characteristics, familiarity and confidence, and promotional
offers. The average score of the multi-items for a construct
was computed since a single construct in the questionnaire
was measured by multiple items, and the score was used in
correlation analysis and regression analysis. The correlation
coefficient value (r) should not go beyond 0.80 to avoid
multicollinearity. Since the highest correlation coefficient is
0.636, which is less than 0.80, there is no multicollinearity
problem in this research. All major variables were
significantly correlated (Table IV).
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
415 International Scholarly and Scientific Research & Innovation 7(3) 2013 scholar.waset.org/1999.10/9996983
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TABLE IV
CORRELATION ANALYSIS
COSB IME PC FC PO
COSB 1.000
IME 0.453** 1.000
PC 0.123 0.235** 1.000
FC 0.636** 0.449** 0.156* 1.000
PO 0.593** 0.565** 0.277** 0.503** 1.000
Mean 11.110 13.440 13.150 27.040 14.280
SD 2.088 2.710 2.550 3.251 2.427
D. Multiple Regression Analysis
Multiple regression analysis was performed to test the
hypothesis relationship between independent variables and
dependent variable. Results were enumerated in Table V. The
F-statistics produced (F = 50.798) was significant at 1 percent
level (Sig. F<0.01), thus confirming the fitness of the model.
Thus, significant relationship emerges among the four factors
(i.e. Internet marketing environment, product characteristics,
familiarity and confidence, promotional offer) and consumer
online shopping behavior among students and staff in a public
university in Federal Territory of Labuan, Malaysia. Adjusted
R
2
= 0.50, indicating the independent variables explained 50
percent variance in the dependent variable.
TABLE V
REGRESSION ANALYSIS
Standardized Beta Coefficients t-value Result
IME 0.075 1.196 Not supported
PC -0.058 -1.116 Not Supported
FC 0.437* 7.333 Supported
PO 0.347* 5.296 Supported
Adjusted R² 0.500
F 50.798
Sig, F 0.000
* p < 0.05
H1 posited that Internet marketing environment would have
a significant impact on consumer online shopping behavior .
Table V demonstrated that results were insignificant
(?
1
=0.075; t=1.196; p=0.233). Thus, H1 is not supported
where the Internet marketing environment does not have an
impact on consumer online shopping behavior. H2 proposed
that product characteristics would have a significant impact on
consumer online shopping behavior. Results were also
insignificant (?
2
=-0.058; t=-1.116), signifying H2 is not
supported. Next, H3 proposed that familiarity and confidence
would have a significant impact on consumer online shopping
behavior. A significant result was found (?
3
=0.437; t=7.333;
p=0.000). Its p-value was < 0.05, implying H3 is supported by
the data. H4 posited that promotional offer would have a
significant impact on consumer online shopping behavior.
Results were ?
4
= 0.347; t = 5.296. Its p<0.05, hence, H4 is
significant and supported.
V. DISCUSSION
This study examined the effect of Internet marketing
environment, product characteristics, familiarity and
confidence, and promotional offer towards consumer online
shopping behavior among 200 students and staff in a public
university in Federal Territory of Labuan, Malaysia.
Familiarity and confidence significantly influenced consumer
online shopping behavior followed by promotional offer,
implying hypotheses 3 and 4 were accepted. The beta
coefficient for familiarity and confidence is greater than
promotional offers in terms of its relationship with consumer
online shopping behavior. It signifies that familiarity and
confidence with the services is the most influential factor to
affect consumer online shopping behavior. Similar results
were found by Maenpaa, Kale, Kuusela, and Mesiranta [12]’s
study. Consumers make a distinction between familiar and
unfamiliar products online that can affect consumer
satisfaction [16]. Kim [18] noted that company reputation,
structural assurance, and trusting stance, and initial trust
beliefs affects consumer attitude to shop online. The new e-
vendors with unfamiliar brand name are affected greatly as
their brand still not well position in consumer minds. Many
customers believe that people who trust a traditional brick and
mortar retailer will have a similar level of confidence
shopping online for products with the retailer [9].
Promotional offer is the second factor that significantly
influences consumer online shopping behavior. This result is
comparable to Odunlami & Ogunsiji [15]’s study that
promotional offer is a major determinant of consumer online
shopping behavior. Sales promotion can be used to increase
sales, usage or trial of products or services, and it is an
important component of the overall marketing strategy which
can provide an incentive that can reach the target audience.
For instance, this promotion can bring benefits to the
consumers for enjoying online shopping and searching the
information [15]. Results also confirmed that consumers put
less emphasis on the Internet marketing environment and
product characteristics which were found to insignificantly
impact consumer online shopping behavior. Inability to feel
product is one of the limitation where consumers would want
to touch and feel most of the goods before buying. This is due
to the fact that the shoppers don't trust what product is in the
box. Many of the consumers would want to have it opened and
checked, right in front of their eyes but this process is not
possible while shopping online. Delay in delivery by the web
stores where the stock gets delivered after a week or two but
shoppers will find out only after completing their payment.
These limitations have caused shoppers to be wary about
ordering products online. In other words, consumer confidence
with online shopping is affected with issues such as shipping
costs, privacy, and the inability to touch and feel products
[19]-[24]. However, those who believe that online transactions
are not secure enough to protect the payment information from
disclosure and who tend to buy in great haste when the
purchase becomes necessary may eventually be another group
to become online shoppers. Experienced Internet users and
experienced online shoppers are more likely to be potential
future online shoppers.
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
416 International Scholarly and Scientific Research & Innovation 7(3) 2013 scholar.waset.org/1999.10/9996983
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VI. CONCLUSION
Familiarity and confidence was found to exert a great
influence on consumer online shopping behavior among
students and staff in a public university in Federal Territory of
Labuan, Malaysia followed by promotional offer. Consumers
put less emphasis on the Internet marketing environment and
product characteristics. Hence, the findings provide additional
insight into consumers’ online shopping behavior in Malaysia.
Results of this study should encourage strategy development
for the Internet marketing environment, product
characteristics, familiarity and confidence, and promotional
offers. A clear understanding of consumer online shopping
behavior can help marketing managers predict the online
shopping rate and evaluate the future growth of online
commerce. Meanwhile, input regarding what motivates
consumers to shop online would help e-vendors in formulating
strategy, technology, and marketing decisions as well as
website design [16].
The government should play an important role in increasing
Internet usage among Malaysians and provide more secure
online transactions. The retailer or any organization should
develop and explore security issues of online transactions
making sure they are secure and provide the consumers with
confidence to shop online. With the help of government,
providing the infrastructure Malaysians will be able to cope
with the growth of new technologies and compete in the
digital world. It is also recommended that additional studies be
undertaken to examine consumer behavior and online
shopping patterns in other regions and with larger samples.
Demographics differences from the perspective of gender,
income and education level should also be explored explicitly
in order to examine the dissimilar perceptions of consumer
online shopping behavior related to the adoption of and use of
information technology [25], [26] and mobile commerce [27].
It would be interesting to investigate the effect of the proposed
model using multivariate statistical data analysis such as
structural equation modeling as the path coefficients can be
calculated via the maximum likelihood technique and overall
model fit and measurement model fit assessments can be
considered beforehand.
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[26] F. Ulbrich, T. Christensen and L. Stankus, “Gender-specific on-line
shopping preferences,” Electronic Commerce Research, vol. 11, pp.
181-199, 2011.
[27] A.A. Ozok and J. Wei, “An empirical comparison of consumer usability
preferences in online shopping using stationary and mobile devices:
results from a college student population,” Electronic Commerce
Research, vol. 10, no.2, pp. 113-137, 2010.
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International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
417 International Scholarly and Scientific Research & Innovation 7(3) 2013 scholar.waset.org/1999.10/9996983
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Norazah Mohd Suki is an associate professor with the Labuan School of
Business & Finance at Universiti Malaysia Sabah, Labuan International
Campus, Federal Territory of Labuan, Malaysia. Her research interests include
Electronic Marketing, E-Commerce, M-Commerce, Consumer Behavior,
Mobile Learning and areas related to Marketing.
Norbayah Mohd Suki is a senior lecturer with the Labuan School of
Informatics Science at Universiti Malaysia Sabah, Labuan International
Campus, Federal Territory of Labuan, Malaysia. Her research interests include
creative multimedia, m-learning, animation, interactive storytelling.
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
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doc_675733344.pdf
Online shopping enables consumers to search for information and purchase products or services through direct interaction with online store. This study aims to examine the effect of Internet marketing environment, product characteristics, familiarity and confidence, and promotional offers on consumer online shopping behavior.
Abstract—Online shopping enables consumers to search for
information and purchase products or services through direct
interaction with online store. This study aims to examine the effect of
Internet marketing environment, product characteristics, familiarity
and confidence, and promotional offers on consumer online shopping
behavior. 200 questionnaires were distributed to the respondents, who
are students and staff at a public university in the Federal Territory of
Labuan, Malaysia, following simple random sampling as a means of
data collection. Multiple regression analysis was used as a statistical
measure to determine the strength of the relationship between one
dependent variable and a series of other independent variables.
Results revealed that familiarity and confidence was found to greatly
influence consumer online shopping behavior followed by
promotional offers. A clear understanding of consumer online
shopping behavior can help marketing managers predict the online
shopping rate and evaluate the future growth of online commerce.
Keywords—Internet Marketing Environment, Product
Characteristics, Multiple Regression Analysis, Malaysia.
I. INTRODUCTION
HE internet has changed the way people shop and day-to-
day lives. Internet usage has grown rapidly over the past
years and has become a common means for delivering and
trading information, services, and goods [1]. In recent years,
shopping online has become the norm and all over the world
consumers prefer to shop online as it has many advantages [2].
The Internet-based electronic commerce environment enables
consumers to search for information and purchase products or
services through direct interaction with online store. Although,
purchasing online is still a small part of Internet usage, most
analysts expect it will increase dramatically when consumers
feel convinced and secure about their purchases and protection
of their privacy. Internet shopping in Malaysia is in its infancy
[3]. Web-retailers can only offer certain ranges of products
and services to web-shoppers, including e-banking services,
technology gadgets, cosmetics, clothing, and the booking of
airline tickets [4]. The first groups of products are ones
consumers do not need to see personally before purchasing.
Norazah Mohd Suki is an associate professor with the Labuan School of
Business & Finance, Universiti Malaysia Sabah, 87000 labuan F.T., Sabah,
Malaysia (e-mail: [email protected]).
Norbayah Mohd Suki is a senior lecturer with the Labuan School of
Informatics Science, Universiti Malaysia Sabah, 87000 labuan F.T., Sabah,
Malaysia (e-mail: [email protected]).
These products include e-banking services and the booking of
airline tickets. This group of products is suitable for Internet
shopping because the Internet provides transaction and
communication functions. The second groups of products are
items consumers prefer to see and touch before purchasing.
These products include technology gadgets, cosmetics, and
clothing. This group of products is not suitable for Internet
shopping because the images and information about the
product may not be accurate or sufficient for consumers to
perform Internet-based transactions. This study aims to
examine the effect of Internet marketing environment, product
characteristics, familiarity and confidence, and promotional
offers on consumer online shopping behavior.
II. LITERATURE REVIEW
Online shopping has eliminated on the consumer’s side
such traditional shopping inconveniences as battling crowds,
standing in long checkout lines, and fighting for parking
spaces at a busy mall [2]. The customers are able to evaluate
the available products and their prices from a multiplicity of
diverse outlets through the Internet. These comparison-
shopping sites may save customers’ time and money because
they can see which retailer has the best price without visiting
many websites. Thus, it allows consumers to browse online
shopping websites in the privacy of their home [2].
A. Internet Marketing Environment
Internet marketing environment is related to a paperless
environment where a computer is used as a medium to
recognize, reproduce, and store product information that
enable online businesses to be operated without limits anytime
and anywhere in 24 hours a day, 7days a week and 365 days a
year principle [5]. Consumers are free to shop at different
websites and they are able to switch from one website to
another in just a click [2]. Shoppers are more attracted to well-
designed online shopping sites that are easy-to-navigate and
visually appealing. Thus, the website design does influence
shoppers’ purchases [6]. Through a superior understanding of
the web shopper’s online purchase intention, web retailers will
be able to enlarge valuable and efficient web-shopping
strategies to create a centre of attention for new and potential
web-shopping customers [4]. Internet marketing is becoming a
more and more important strategy for the company to
promote, advertise and interact more with online customers.
Consumer Online Shopping Behavior:
The Effect of Internet Marketing Environment,
Product Characteristics, Familiarity and Confidence,
and Promotional Offer
Norazah Mohd Suki, Norbayah Mohd Suki
T
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
413 International Scholarly and Scientific Research & Innovation 7(3) 2013 scholar.waset.org/1999.10/9996983
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With a good understanding of the web shoppers’ online
purchase intentions, web retailers will be able to develop
effective and efficient web-shopping strategies to attract new
and potential web-shopping customers [7]. Therefore, the
study hypothesizes that:
H1. The Internet marketing environment will have a
significant impact on consumer online shopping behavior.
B. Product Characteristics
The product is related to anything that can be offered to a
market that can satisfy the customers’ needs and wants which
include services [8]. In order to provide more accurate
information and a better shopping experience, most of the
online retailers are turning to merchandise that allows
shoppers to interact with the products and examine them
online [9]. Product characteristics are very important in
developing the online business. Besides that, products can
include more tangible objects such as cars, computers or cell
phones, and these products also include services, events,
persons, places, organizations, ideas or a mixture of these [8].
Before the consumers purchase products through the Internet,
they use the Internet as a cue to identify the characteristics and
the brand of a product itself [10]. In order to provide more
accurate information and a better shopping experience, most
of the online retailers are turning to the product virtualization
technology that allow the shoppers to interact with the
products and examine the products online [11]. Thus, it is
expected that:
H2. Product characteristics will have a significant impact on
consumer online shopping behavior.
C. Familiarity and Confidence
Familiarity is related to the amount of goods in relation to
experience that has been accumulated by the consumers [12].
The familiarity of the customer with the computer and the
Internet and frequency and length of his or her usage, were
found to be positively associated with adoption behavior in
general [13]. Kim and Jihyun [9] highlight the importance to
assess the consumer confidence when they going to shop with
the online retailer. When the product familiarity is increased, it
can improve the consumers’ cognitive structures and task
performance as well as their ability to analyze, elaborate and
remember the product information [12]. Familiarity becomes
more important to increase customer satisfaction and it
differentiates between familiar and unfamiliar fields [8]. Thus,
a better understanding of the technology and its operating
processes will definitely alleviate concerns and lead to higher
usage of online shopping [13]. Accordingly, the study
hypothesizes that:
H3. Familiarity and confidence will have a significant impact
on consumer online shopping behavior.
D. Promotional Offer
Promotion is related to a form of strategic communication
to inform, persuade, and remind the potential buyers of a
product in order to influence an opinion or elicit a response
[14]. Promotion can bring benefits to the consumers for
enjoying shopping and searching for information [15]. Sales
promotion, a part of the marketing campaign, consists of a
diverse collection of incentive tools, mostly short term
designed to stimulate quicker or greater purchase of particular
products or services by consumers [8]. Sales promotions
enhance consumer’s number of shopping trips to the store.
Hence, the study posits that:
H4. Promotional offer will have a significant impact on
consumer online shopping behavior.
Hence, the study proposed the following theoretical
framework (Fig. 1):
Fig. 1 Theoretical framework
III. METHODOLOGY
200 questionnaires distributed to the respondents who are
students and staff in a public university in the Federal
Territory of Labuan, Malaysia following simple random
sampling method. All respondents were asked to complete the
questionnaire which comprised of three sections. Section A
consisted of demographic profile which consists of gender,
age, level of education, and monthly income and helps to
identify the group of consumers. While section B examined
the consumer Internet shopping experience. Section C
examined the consumer shopping behavior via the Internet.
All of these questions were measured on a five-point Likert
scale ranging from 1 (strongly disagree) to 5 (strongly agree).
The four factors applied consisted of Internet marketing
environment, product characteristics, familiarity and
confidence, and promotional offers adapted from Haque,
Khatibi, and Mahmud [16]. Statistical Package for Social
Sciences (SPSS) version 17 computer program was utilized in
order to calculate the descriptive analysis. Descriptive analysis
is used to portray the basic features that include means,
variances, standard deviation, and can also evaluate qualitative
analysis of data. These also provide a simple summary about
the measures and the sample. Then, multiple regression
analysis is used. This statistical measure attempts to determine
the strength of the relationship between one dependent
variable and a series of other independent variables. The
advantage of regression is it provides the forecasts and also
explains the variations in the forecast variable in the past.
Consumer
Online
Shopping
Behavior
Internet Marketing
Environment
Product Characteristics
Familiarity and
Confidence
Promotional Offer
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
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IV. DISCUSSION OF ANALYSIS
Table I depicts frequency analysis of the demographic
profile of respondents. 122 (61%) of the respondents were
female and 39% males. 77% were aged 21 to 25 years
followed by 11% aged 26 to 30 years. More than half of the
respondents (62%) held bachelor degrees. 11% of the
respondents earned monthly income more than RM 2,001.
TABLE I
DEMOGRAPHIC PROFILE OF RESPONDENTS
Frequency Percentage
Gender
Male 78 39
Female 122 61
Age (years old)
Below 20
10 5
21-25
154 77
26-30
22 11
31-35
10 5
Above 36 4 2
Level of Education
Primary
8 4
Secondary
46 23
Bachelor/Degree
124 62
Master/PhD
22 11
Monthly Income
Less than 1000
144 72
1001-2000 34 17
2001-3000 16 8
Above 3001
6 3
A. Experiences with Online Shopping
Table II describes online shopping experience of the
respondents. 158 respondents have shopped online this year
and 42 respondents have yet to do so. 70 respondents choose
the product itself as the main factor to affect their online
shopping behavior followed by convenience and promotional
offer factors. 88 respondents have shopped online within one
to three years, 84 respondents in less than a year, and 16
respondents shopped online within three to five years. Next,
54 respondents purchased products through the Internet once
every three months, followed by 50 respondents purchased
products through the Internet once every six months and 14
respondents purchased products online once every twelve
months. 72 respondents (36%) spent eleven to thirty minutes
on searching before they found a piece of useful product
information, 52 respondents (26%) spent thirty-one to sixty
minutes, and 16 respondents (8%) spent less than ten minutes
on searching before they found a piece of useful product
information.
TABLE II
FREQUENCY ON PURCHASING WILLINGNESS
Experience Frequency Percentage
Shop online this year
Yes
No
158
42
79.0
21.0
Factors affect online shopping behavior
Web environment
Convenience
Promotional offer
Product itself
22
56
52
70
11.0
28.0
26.0
35.0
Period shopping online
Less than 1 year
1-3 years
3-5 years
More than 5 years
84
88
16
12
42.0
44.0
8.0
6.0
Frequency shopping online
Once a month
Once every 3 months
Once every 6 months
Once every 9 months
Once every 12 months
Never
36
54
50
18
14
28
18.0
27.0
25.0
9.0
7.0
14.0
Time spend searching for product online
Less than 10 minutes
11-30 minutes
31-60 minutes
Don’t know
16
72
52
60
8.0
36.0
26.0
30.0
B. Reliability Analysis
Reliability of measurement was tested using the Cronbach’s
Alpha in order to measure the internal consistency of the
scales [17]. Table III infers that the Cronbach’s alpha values
of all variables were greater than 0.70, implying all variables
are reliable and have high internal consistency. No item
deletion was performed as the reliability for each factor was
high.
TABLE III
RELIABILITY ANALYSIS
Variables Number
of Items
Cronbach’s
?
Consumer Online Shopping Behavior (COSB) 3 0.846
Internet Marketing Environment (IME) 4 0.810
Product Characteristics (PC) 4 0.835
Familiarity and Confidence (FC) 8 0.804
Promotional Offer (PO) 4 0.807
C. Correlation Analysis among Variables
Pearson correlations were calculated to identify the
correlations between the five variables: consumer online
shopping behavior, Internet marketing environment, product
characteristics, familiarity and confidence, and promotional
offers. The average score of the multi-items for a construct
was computed since a single construct in the questionnaire
was measured by multiple items, and the score was used in
correlation analysis and regression analysis. The correlation
coefficient value (r) should not go beyond 0.80 to avoid
multicollinearity. Since the highest correlation coefficient is
0.636, which is less than 0.80, there is no multicollinearity
problem in this research. All major variables were
significantly correlated (Table IV).
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
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TABLE IV
CORRELATION ANALYSIS
COSB IME PC FC PO
COSB 1.000
IME 0.453** 1.000
PC 0.123 0.235** 1.000
FC 0.636** 0.449** 0.156* 1.000
PO 0.593** 0.565** 0.277** 0.503** 1.000
Mean 11.110 13.440 13.150 27.040 14.280
SD 2.088 2.710 2.550 3.251 2.427
D. Multiple Regression Analysis
Multiple regression analysis was performed to test the
hypothesis relationship between independent variables and
dependent variable. Results were enumerated in Table V. The
F-statistics produced (F = 50.798) was significant at 1 percent
level (Sig. F<0.01), thus confirming the fitness of the model.
Thus, significant relationship emerges among the four factors
(i.e. Internet marketing environment, product characteristics,
familiarity and confidence, promotional offer) and consumer
online shopping behavior among students and staff in a public
university in Federal Territory of Labuan, Malaysia. Adjusted
R
2
= 0.50, indicating the independent variables explained 50
percent variance in the dependent variable.
TABLE V
REGRESSION ANALYSIS
Standardized Beta Coefficients t-value Result
IME 0.075 1.196 Not supported
PC -0.058 -1.116 Not Supported
FC 0.437* 7.333 Supported
PO 0.347* 5.296 Supported
Adjusted R² 0.500
F 50.798
Sig, F 0.000
* p < 0.05
H1 posited that Internet marketing environment would have
a significant impact on consumer online shopping behavior .
Table V demonstrated that results were insignificant
(?
1
=0.075; t=1.196; p=0.233). Thus, H1 is not supported
where the Internet marketing environment does not have an
impact on consumer online shopping behavior. H2 proposed
that product characteristics would have a significant impact on
consumer online shopping behavior. Results were also
insignificant (?
2
=-0.058; t=-1.116), signifying H2 is not
supported. Next, H3 proposed that familiarity and confidence
would have a significant impact on consumer online shopping
behavior. A significant result was found (?
3
=0.437; t=7.333;
p=0.000). Its p-value was < 0.05, implying H3 is supported by
the data. H4 posited that promotional offer would have a
significant impact on consumer online shopping behavior.
Results were ?
4
= 0.347; t = 5.296. Its p<0.05, hence, H4 is
significant and supported.
V. DISCUSSION
This study examined the effect of Internet marketing
environment, product characteristics, familiarity and
confidence, and promotional offer towards consumer online
shopping behavior among 200 students and staff in a public
university in Federal Territory of Labuan, Malaysia.
Familiarity and confidence significantly influenced consumer
online shopping behavior followed by promotional offer,
implying hypotheses 3 and 4 were accepted. The beta
coefficient for familiarity and confidence is greater than
promotional offers in terms of its relationship with consumer
online shopping behavior. It signifies that familiarity and
confidence with the services is the most influential factor to
affect consumer online shopping behavior. Similar results
were found by Maenpaa, Kale, Kuusela, and Mesiranta [12]’s
study. Consumers make a distinction between familiar and
unfamiliar products online that can affect consumer
satisfaction [16]. Kim [18] noted that company reputation,
structural assurance, and trusting stance, and initial trust
beliefs affects consumer attitude to shop online. The new e-
vendors with unfamiliar brand name are affected greatly as
their brand still not well position in consumer minds. Many
customers believe that people who trust a traditional brick and
mortar retailer will have a similar level of confidence
shopping online for products with the retailer [9].
Promotional offer is the second factor that significantly
influences consumer online shopping behavior. This result is
comparable to Odunlami & Ogunsiji [15]’s study that
promotional offer is a major determinant of consumer online
shopping behavior. Sales promotion can be used to increase
sales, usage or trial of products or services, and it is an
important component of the overall marketing strategy which
can provide an incentive that can reach the target audience.
For instance, this promotion can bring benefits to the
consumers for enjoying online shopping and searching the
information [15]. Results also confirmed that consumers put
less emphasis on the Internet marketing environment and
product characteristics which were found to insignificantly
impact consumer online shopping behavior. Inability to feel
product is one of the limitation where consumers would want
to touch and feel most of the goods before buying. This is due
to the fact that the shoppers don't trust what product is in the
box. Many of the consumers would want to have it opened and
checked, right in front of their eyes but this process is not
possible while shopping online. Delay in delivery by the web
stores where the stock gets delivered after a week or two but
shoppers will find out only after completing their payment.
These limitations have caused shoppers to be wary about
ordering products online. In other words, consumer confidence
with online shopping is affected with issues such as shipping
costs, privacy, and the inability to touch and feel products
[19]-[24]. However, those who believe that online transactions
are not secure enough to protect the payment information from
disclosure and who tend to buy in great haste when the
purchase becomes necessary may eventually be another group
to become online shoppers. Experienced Internet users and
experienced online shoppers are more likely to be potential
future online shoppers.
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International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
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VI. CONCLUSION
Familiarity and confidence was found to exert a great
influence on consumer online shopping behavior among
students and staff in a public university in Federal Territory of
Labuan, Malaysia followed by promotional offer. Consumers
put less emphasis on the Internet marketing environment and
product characteristics. Hence, the findings provide additional
insight into consumers’ online shopping behavior in Malaysia.
Results of this study should encourage strategy development
for the Internet marketing environment, product
characteristics, familiarity and confidence, and promotional
offers. A clear understanding of consumer online shopping
behavior can help marketing managers predict the online
shopping rate and evaluate the future growth of online
commerce. Meanwhile, input regarding what motivates
consumers to shop online would help e-vendors in formulating
strategy, technology, and marketing decisions as well as
website design [16].
The government should play an important role in increasing
Internet usage among Malaysians and provide more secure
online transactions. The retailer or any organization should
develop and explore security issues of online transactions
making sure they are secure and provide the consumers with
confidence to shop online. With the help of government,
providing the infrastructure Malaysians will be able to cope
with the growth of new technologies and compete in the
digital world. It is also recommended that additional studies be
undertaken to examine consumer behavior and online
shopping patterns in other regions and with larger samples.
Demographics differences from the perspective of gender,
income and education level should also be explored explicitly
in order to examine the dissimilar perceptions of consumer
online shopping behavior related to the adoption of and use of
information technology [25], [26] and mobile commerce [27].
It would be interesting to investigate the effect of the proposed
model using multivariate statistical data analysis such as
structural equation modeling as the path coefficients can be
calculated via the maximum likelihood technique and overall
model fit and measurement model fit assessments can be
considered beforehand.
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World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
417 International Scholarly and Scientific Research & Innovation 7(3) 2013 scholar.waset.org/1999.10/9996983
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Norazah Mohd Suki is an associate professor with the Labuan School of
Business & Finance at Universiti Malaysia Sabah, Labuan International
Campus, Federal Territory of Labuan, Malaysia. Her research interests include
Electronic Marketing, E-Commerce, M-Commerce, Consumer Behavior,
Mobile Learning and areas related to Marketing.
Norbayah Mohd Suki is a senior lecturer with the Labuan School of
Informatics Science at Universiti Malaysia Sabah, Labuan International
Campus, Federal Territory of Labuan, Malaysia. Her research interests include
creative multimedia, m-learning, animation, interactive storytelling.
World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:3, 2013
418 International Scholarly and Scientific Research & Innovation 7(3) 2013 scholar.waset.org/1999.10/9996983
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doc_675733344.pdf