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INFLUENCES ON ONLINE PURCHASING IN AUSTRALIA ASSESSMENT 1 | 24. 04. 21

Abstract: The aim of this qualitative report is to better understand what influences online purchasing in Australia. This report will focus on the motivation, behaviour and decision-making process of young adults aged 18-24 when purchasing in ecommerce and social commerce. This is achieved through external research and the thematic analysis of qualitative interviews with six people, ranging all genders aged from 18-24. Furthermore, the report makes recommendations to further explore this topic in addition to outlining the limitations of the study. 2, 208 words

Kathleen Bramadat | n10171142 Tutor: Kathleen Chell | Tutorial time: Thursday, 1pm-2pm

Kathleen Bramadat

N10171142

Table of Contents Participation Reflection ..................................................................................................... 2 Visual summary of research ....................................................................................................... 3

1. Introduction ................................................................................................................... 4 1.1 Topic and background ........................................................................................................ 4 1.2 Scope of the report .............................................................................................................. 4 1.3 Research problem and objectives ....................................................................................... 4

2. Method .......................................................................................................................... 5 2.1 Research methodology ........................................................................................................ 5 2.2 Sample................................................................................................................................. 5 2.3 Procedure ............................................................................................................................ 5 2.4 Ethical considerations ......................................................................................................... 6

3. Results ........................................................................................................................... 7 4. Discussion ...................................................................................................................10 4.1 Interpretation of findings .................................................................................................. 10 4.1.1 Experiences with online purchasing .................................................................................................. 10 4.1.2 Motivations for engaging in online purchasing ................................................................................. 11 4.1.3 Types of people who purchase products online ................................................................................ 11 4.2 Implications and recommendations .....................................................................................................11

4.3 Limitations ........................................................................................................................ 12 4.3.1 Sample size ........................................................................................................................................ 12 4.3.2 Participant selection ........................................................................................................................... 12

5. References ........................................................................................................................... 13 6. Appendix ............................................................................................................................. 15 6.1 Coded interview scripts ........................................................................................................................ 15 6.2 Braun & Clarke’s six-step thematic analysis framework ....................................................................... 49

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Participation Reflection I participated in two qualitative studies. Binge Watching explored how people engage in binge watching of television. Multi-screening media consumption examined people’s habits regarding consuming media using two or more screen-based devises simultaneously. I chose these studies hoping that the topical similarities would highlight the comparations and differences in survey styles. Binge Watching required the watching of a satirical YouTube video featuring celebrity actors to define binge-watching. The study collected responses through an open-ended question requiring a short-answer response. The use of entertaining material engages the participant resulting in better-quality responses. The second study, Multi-screening media consumption also required the watching of a video. However, this video focused on education rather than entertainment. Although the video was less ‘entertaining’, it provided another avenue of engagement, as the participant was exposed to both written and visual content. In future, this method will inform my own research in order to receive the best data from a highly engaged participant. Both studies collected responses through a series of short-answer open-ended questions. This allowed a broader range of opinions and avoided researcher bias. I will incorporate these question styles in my future research. However, the second study divided questions into sectionals labelled general information, positives and negatives. This gave clarity and structure which made it easier to answer questions. Therefore, the easier accessibility of the study, the better likelihood of comprehensive responses. Thus, I will incorporate this structure in my own qualitative research. Both studies required a high level of recollection and cognitive thinking by asking open-ended, information rich questions, with prompts to give examples or elaborate. This encouraged me to give detailed answers to questions that I otherwise would have responded with a binary yes or no. I will utilise this in my own research, as higher detailed responses create a better understanding of attitudes and opinions of test subjects/groups. I feel that it is valuable for researchers to also act as a participant. This allows a greater understanding and insight into how participants may answer specific styles of questioning or respond to research material. This will give the researcher a better understanding and reflection into how they must conduct their own surveys. 320 words 2

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Visual summary of research

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1. Introduction 1.1 Topic and background Online purchasing is a rapidly growing and evolving industry. Online shopping revenue is forecast to grow 6.2% annually, reaching an $46.7 billion dollars by 2025 (Feller, 2020). Despite Gen Z’s limited financial resources, they are the most engaged and responsive to online e-commerce sites and social commerce (Feller, 2020). As the industry experiences continual growth and social commerce becomes the new norm, it is important to understand what attitudes and behaviours drives the young consumer to buy online.

1.2 Scope of the report This report will analyse the qualitative data from a sample-size of six interviews. The study required English-speaking Australian adults who have purchased online over the last twelve months. The age demographic ranges from 18–24-year-olds (Gen Z). The scope of this report covers both e-commerce and social commerce. Intangible goods such as subscriptions, services, gift cards or mobile applications have been excluded. 1.3 Research problem and objectives With the steadily increasing popularity in online purchasing, businesses and marketing professionals must analyse the current consumer to predict future attitudes and behaviour. Thus, this report will attempt to answer the focus question: What influences online purchasing in Australia? Furthermore, though qualitive exploration and external research, this report will focus on current behaviours and attitudes of Gen Z consumers as they become the most engaged demographic in e-commerce and social commerce. The report has three objectives. The first is to explore the experiences of this demographic, describing purchase frequent, past positive or negative encounters and decision making of each individual. The second objective is to examine motivations for engaging in online purchasing. This objective focuses on the attitudes of the demographic and aims to understand why purchase decisions are made and why they are motivated to like or dislike online purchasing. The third objective aims to understand the types of people who purchase online through the perspective of the 18-24 age demographic, thus evaluating how they perceive themselves amongst other groups.

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2. Method 2.1 Research methodology The focus of this study is to determine what influences online purchasing. This study utilised qualitative research in the form of transcribed interviews. This was appropriate as the study required the participant to share complex opinions and experiences, aspects that cannot be numerically measured (Aspers & Corte, 2019). The interview contained open-ended questions with follow-up prompts to encourage detailed responses. Participants were asked about their online purchasing habits, experiences, motivations, influences and concerns. Transcripts of interview were coded and thematically analysed.

2.2 Sample AMB201 students were asked to conduct two in-depth qualitative interviews and upload them to a database. The study included a total of 358 responses. The participants were chosen to using a non-random, purposive sampling method; meaning that interviewees were chosen based on the researcher’s knowledge that they were frequent online shoppers (Boddy, 2016). This method was chosen due to its ‘capacity to provide richly-textured information, relevant to the phenomenon under investigation’ (Vasileiou et.al., 2018). According to Boddy (2016), qualitative studies require a smaller sample size of 5-50. Thus, this study utilises a sample size of six, split into three women and three men aged 18-24. This report utilises the method of convenience, as participants were chosen based on availability (Elfil & Negida, 2017). The Gen Z demographic was chosen as 18–24-year-olds are the heaviest internet users, have an increasing purchase power (thus dictating future trends) and are highly responsive to ecommerce and social commerce advertising and purchasing (Feller, 2020). The ratio of female to male participants is equal in order to avoid bias and analyse potential differences in gender-specific behaviour.

2.3 Procedure This study required a 20–30-minute interview that encouraged interviewees to share in-depth and illustrative responses to detailed task-related questions. Firstly, the interviewer thanked the participant for their time and introduced the topic following a set script. The researcher asked if the respondent met the requirements of the

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study. The participant was informed that their details would not be shared outside the scope of the study. The researcher then asked for verbal consent to record the interview. Once verbal consent had been given, a paper consent form outlining participant rights, data use and confidentiality was given. Once the participant signed, the interview commenced and was recorded. The interview comprised of and average of 26 questions, 23 of which were homogenous questioned shared across the entire study. These questions were divided into sections. Each section addressed an objective outlined in section 13 of this report. The questions were openended and prompted high-cognitive responses (Agee, 2009). When the researcher felt that more elaboration or clarification to a respondent’s answer was needed, probing questions were implemented (Qu & Dumay, 2011). They interview was transcribed and uploaded to Blackboard. These two interviews, in addition to four chosen from the Blackboard were coded and thematically analysed.

2.4 Ethical considerations Marketing research requires ethical consideration. Ethical norms are essential to good researching practice, as it minimises error, bias and fallacy, thus producing the most valuable and concise results (Sanjari et al., 2014). Upholding ethical standards is essential to the validity of the study. This study had ethical concerns regarding transparency, privacy and consent. To maintain transparency, this form provided a description, objectives and expected benefits of the study. This allowed the individual to make an informed decision on their participation and establish trust in the study and researcher. According to Guillemin et al. (2018), if the participant feels trust and well informed, they are likely to feel more comfortable, providing more honest and detailed responses. Furthermore, the form outlined the privacy, confidentiality and risks involved with the study, specifically stating that details of the participant would be de-identified. Lastly, the form asked for consent. By outlining the details, objectives, privacy and risks, the participant gave informed consent as they were fully competent to make a voluntary decision regarding participation.

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3. Results The six transcripts were studied using inductive thematic analysis (Javadi & Zarea, 2016). This methodology allows the data to determine the themes through commonalities rather than fitting data within pre-determined themes (Javadi & Zarea, 2016). Maguire & Delahunt (2017) suggests the use of Braun & Clarke’s a six-step framework to conduct thematic analysis (Appendix 6.1.2). Firstly, the six transcripts were familiarised. Next, codes were suggested based on high-frequency commonalities in behaviours and attitudes. Codes were chosen based on their high frequency across transcripts and relevance to the topic. This method is defined as open coding (Maguire & Delahunt, 2017). Following this technique, codes were altered as information and codes with a lower frequency were discarded. Utilising this open coding system extrapolates highly relevant data and broaden the researchers understanding of the topic (Nowell et al., 2017). After analysing the annotated transcripts, the codes were grouped into broad sections relative to consumer behaviour and attitudes. This was done to determine broad themes. Using Braun & Clarke’s framework, these themes were refined to more effectively address study objectives (Maguire & Delahunt, 2017). Evident in the table below, it was concluded that the major themes within the study included experiences, risks and demographic groups.

THEME

CODE Frequency

Social commerce history

DESCRIPTION How often the participant purchases online

If the participant has purchased online via social media

EXAMPLES ‘once or twice a month.’ (Transcript 3) ‘at least once a fortnight’ (Transcript 1) ‘once every 2 weeks’ (Transcript 6) ‘Social media…defiantly has influenced me in the past.’ (Transcript 3) Yes! Definitely all the time! (Transcript 4) ‘I get a lot of clothing, a lot of rings.’ (Transcript 2)

Experiences Purchase history

Websites

What participant has bought from online

Website’s participants have purchased from

‘Yes. More than once. Even when I am studying.’ (Transcript 6) ‘I have also purchased my car from an online car sales site’ (Transcript 3) ‘Skin care & beauty, clothing or lifestyle & homeware sites.’ (Transcript 6) ‘City Beach and Surf Stitch.’ (Transcript 3) ‘Princess Polly, ASOS, The Iconic’ (Transcript 1)

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‘I usually purchase from online stores that are strictly only online’ (Transcript 4)

Positive experience

Negative experience

Impulse shopping

Decision making

Positive experiences with shopping online

Negative experiences with shopping online

Making purchases with no rational thinking or planning Decision making process of buying online

‘Ones that I’m comfortable with and that I know won’t scam me out of money’ (Transcript 2) ‘Most of my experiences online are good’ (Transcript 6) ‘Sure, I received the wrong part, and my supplier went above and beyond to send me a brand new one, and also gave me a discount and free shipping on the next order’ (Transcript 5) ‘I’ve shopped on websites where I haven’t checked their returns policy or something and it’s been really expensive to send back.’ (Transcript 1) ‘Delivery on some website’s orders take really long to arrive.’ (Transcript 5) ‘It is like a haze comes over me’ (Transcript 1) ‘it is so easy to buy stuff quickly with no thought’ (Transcript 2) ‘I will find the Instagram page that I like, look through all their stuff, pick out what I want and then maybe a few days later, think about it and then go onto their website and buy it’ (Transcript 2) ‘I go through the reviews and pricing and I always search for discount codes’ (Transcript 6) ‘It is important to understand what you’re buying’ (Transcript 5)

Attitudes

Saving

Online shopping is ‘I will get a bigger discount than in store’ (Transcript 1) cheaper than physical stores ‘Online is cheaper unless there is a specific sale’ (Transcript 2)

Convenienc e

Online shopping is convenient

Range

Product range of online stores

‘Physical stores are more expensive’ (Transcript 5) ‘It’s just far easier and more convenient for me’ (Transcript 3) ‘You don't have to wait in a queue, you don't have to go into the store and see if they have the right size’ (Transcript 1) ‘It’s more accessible.’ (Transcript 2) ‘A lot of stores don’t have my size. If I shop in store, I have to accommodate for getting them altered’ (Transcript 6) ‘You can come across things you wouldn’t usually see or look at.’ (Transcript 6)

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Kathleen Bramadat Excitement and anticipation

N10171142 Feelings of excitement when purchasing online

‘feel really happy and excited- like I’ve given a gift to myself!’ (Transcript 1) ‘Getting it for a better price and then waiting for it and getting it is also great.’ (Transcript 2)

Social commerce

Feelings on social media shopping

‘So, it is like a little present, except to me’ (Transcript 4) ‘If they have like influencer discount codes or makeup recommendations is always there really high chance, I might buy it.’ (Transcript 1) ‘I am not against it, but it is riskier for online scams.’ (Transcript 6)

Risks

Scams

Losing money from scams

‘I honestly love this feature! It makes everything so much easier and time-efficient! (Transcript 4) ‘I believe there is many websites now that are designed by hackers and scammers to imitate common brands or wellknown establishments ‘(Transcript 5) ‘I always make sure the website is reliable, so I am not going to get scammed’ (Transcript 4)

Data breach Risk to personal or financial details Item Poor quality or quality damaged item

Groups or demographics

More likely to purchase online

People or groups more likely to purchase online

It is riskier for generations who don’t understand technology and social media’ (Transcript 6) ‘With being cautious, make sure there is a secure connection and that the sit...