Mark 203 - Assignment 2 - Grade: A PDF

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MARK 203 – Assignment 2: Survey (Quantitative Analysis) ReportZola Prendeville Student ID: 300478672 Tutor: Simran Rughani Word count: 1800IntroductionThe retention of customers will always be a goal and focus for many businesses, as the cost of retaining a customer significantly less than obtaining...

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MARK 203 – Assignment 2: Survey (Quantitative Analysis) Report

Zola Prendeville Student ID: 300478672 Tutor: Simran Rughani Word count: 1800

Introduction The retention of customers will always be a goal and focus for many businesses, as the cost of retaining a customer significantly less than obtaining a new customer (Wen,2011). Understanding the contributing factors that encourage consumers to repurchase, provides managers, owners and marketers with significant information in regard to strategies they can adopt in order to encourage consumers to continue purchasing online. This report intends to understand the contribution cost effective and rich experiences, security concerns and convenience has on consumers online repurchase intention. Whilst also going further into the data and examining whether there is a certain product that is more likely to be repurchased through the channel of online shopping. The research questions that will guide the report are as follows – Does the convenience of online shopping create an incentive for consumers to repurchase goods online? Do the security concerns of consumers act as deterrent for consumers to repurchase goods online? Does the cost effective and rich experience that online shopping can provide – become an encouraging factor for consumers to continue purchasing goods online? And finally, Is there a difference between male and female’s continuation of online shopping?

Convenience is an identified variable that could contribute to consumers incentive to repurchase online. Convenience refers to the ability to proceed with something without difficulty. Consumers experience an ease when shopping online due to the ability to diminish the amount of time spend shopping (Hui, 2007). Instead of having to drive to a store, walk around a store, talk to the shop assistance, perhaps try a product on – online shopping allows the consumer to purchase a product with a swift click. Additionally, there is no closing time for an e-commerce store. Consumers who are time poor and perhaps unable to shop during working hours, now have the convenience of shopping from their homes at any time of the day. Convenience is a perceived benefit of online shopping; therefore, it could also act an incentive for consumers to repurchase online.

Additionally, security concerns is also identified to play a possible role on whether a consumer will continue to purchase products online. Security concerns relates to whether a

consumer feels as if the online store they are purchasing from is trustworthy i.e. not illegally use or share their credit card details or home address. Research presents the idea that trust plays a vital role in consumer retention and is often used to explain consumers intention and behaviour (Wen,2011).

Cost effective and rich experiences is another factor that is considered as a potential participating variable that incentivises consumers to continue purchasing online. Regardless of whether the purchase occurs online or in a physical store – an essential factor in both of these channels of shopping is enjoyment. Enjoyment can be used as a tool to retain customers. Customer enjoyment can occur if they feel as though they have saved money by purchasing a product that is on sale, it can also occur if they feel as though their purchase and consumer opinion is helpful and valuable.

Conceptual framework and Research hypothesis. Hypothesis H1: The convenience of online shopping acts as an incentive for consumers to repurchase online.

H2: The security concerns of consumers deters consumers from purchasing products through online channels.

H3: The experience and enjoyment that consumer receive from online shopping encourages consumers to continue purchasing goods online.

Conceptual framework

Convenience

+ H1 Online repurchase intention

-

Security concerns

H2 + Cost effectiveness and rich experiences

H3

Justification of hypotheses

Hypothesis one identifies that there is a possibility for a positive relationship between convenience and consumers deciding to repurchase products online. Convenience is often identified as a significant benefit associated with online shopping – due to the lower levels of time needed, as well as the 24 hour 7 days a week accessibility. Research has found that convenience not only takes the form of timeliness and accessibility but also aids consumers in their decision-making process, by eliminating the pressures evident in a physical store (Hui, 2007). Purchasing products online allows consumers to think clearly without the added pressure of time or a shop assistant, therefore adding to the convenience and equipping consumers with an added motive to continue purchasing online.

Hypothesis two presents the possibility of security concerns potentially deterring consumers from returning to purchase goods online. Research suggests that one of the greatest fears of consumers is the “possibility of the transaction being intercepted by someone… as well as dishonest online vendors” (Hui, 2007). This poses as potential vulnerability to consumers, due to the possibility of the online store misusing their personal information such as credit card information and their address. This variable is important to demonstrate why certain consumers may wish to discontinue online shopping due to the perceived risks. It is because of the prospect of

Hypothesis three identifies that cost efficiency and consumers experience online shopping could also act as an incentive for consumers to continue purchasing products online. The cost efficiency associated with online shopping stems from being able to obtain discounts and sales that potentially the consumer may not have had access to if they were to have brought the product in a physical store. A report survey found that consumers in 56 countries associated their feelings of enjoyment whilst online shopping as contributing to consumers want to continue purchasing goods online (Sivakumar, 2017). This research presents justification for why there could be a potentially positive relationship between the cost efficiency in addition to a rich experience and consumers wishing to continue purchasing online.

Research methods

In order to obtain the data for this report, a survey/questionnaire was utilized. The data collected from this questionnaire is sourced from Marketing 203 students attending Victoria University of Wellington. Those who participated within the survey were granted an additional 5 marks to their assignment grade. 142 of the Marketing 203 students participated within the questionnaire survey, within that data sample, 68 were male and 74 were female.

The questionnaire follows the Likert scale. The Likert scale is a rating system that is often used in questionnaires, it is designed to measure people’s attitudes, perceptions and opinions. The participants are often asked to rate their attitudes to a question usually within the range of strongly agree, agree, neutral, disagree to strongly disagree. The specific attitudes are often assigned a numerical value (Britannica, 2020).

The first independent variables used within this report is convenience. According to the Oxford dictionary convenience refers to the state of being able to proceed with something without difficulty( Oxford dictionary,2020) In terms of the focus and theme of this report, convenience in relation to online shopping can be classified as making the process of online shopping simple and accessible, without the presence of any unease or discomfort.

The second independent variable used within this report is security concerns. Security concerns refers to online consumers perception of a potential risk that may occur due to their online transactions.

The third independent variable used within this report is cost effiency and rich experience. In relation to this report this can be defined as consumers perception of their online shopping experience. Consumers enjoyment and feelings of satisfaction are often related to whether they believe they have saved money due to a discount, or whether they feel as though their experience shopping online was an enriching experience. A rich experience within this report is often associated with consumers feeling valued not only for their purchase, but also their opinion and

Results and Discussion

Refer to appendix 1 To understand how the data sample perceived their experience of online shopping and whether they were to continue online shopping, the initial step was to conduct a frequency test. When the participants were asked whether they intended to continue online shopping as opposed to discontinuing it, 68 of the data population answered “agree”, whilst 49 participants answered with “strongly agree.” These were the two most common answers within the data population for this specific question.

Refer to appendix 2 Another frequency test was used to further understand the data samples perception of online shopping. Participants were asked whether they would intention was to continue online shopping rather than use traditional shopping methods. The data demonstrated that the most common answers lay within “Neither agree not disagree” (35 participants) and “somewhat agree” (36 participants). The results demonstrate a fairly undecided attitude towards shifting all purchasing procedures online.

Refer to appendix 3 After gauging the participants perception of their continuation of online shopping, it now leads the analysis to understanding the contributing factors to this attitude. A descriptive test was conducted to understand the participants attitudes towards security concerns, which has been hypothesized as a deterrent from consumers online shopping. The graph exhibits that the standard deviation is 1.088, a mean of 4.88 and a minimum of 1. The standard deviation is relatively small, which means that the answers for this question are relatively similar.

Refer to appendix 4 Another contributing factor to consumers wanting to continue purchasing products online is convenience. In order to test the attitudes of the participants a T- test was conducted. The results demonstrate a sig. (2 – tailed) of .000, whilst also the lower end of the 95% confidence interval placed 2.73 and the upper end placed at 3.06.

Refer to appendix five Another contributing factor is the cost effective and experience associated with online shopping. In order to understand the relationship between this variable and repurchase intention online of consumers, an ANOVA test was conducted. The results demonstrated with the sum of squares between groups placed at 7.103 and the sum of squares within groups placed at 321.629.

Limitations

The identified limitations present within this population is the limited number of variables used within the data set. Only 142 participants were used within this study and therefore leading to conclusion that there could have been a greater number of participants used within the data.

Another identified limitation is the restriction nature of the scope of the questions used within the questionnaire. The first report I conducted within this course focused on the benefit online shopping served to consumers who were conscious of the judgement sometimes presented by shop assistance and the issue of trying on clothes, that sometimes lead to a decrease of selfconfidence. There were no questions present within the questionnaire that touched on benefit online shopping provided consumers who did not wish to shop at a physical store due to perceived judgement they could receive.

Appendix

Appendix one

Appendix two

Appendix three

Appendix four

Appendix five

References Hui, T., & Wan, D. (2007). Factors affecting Internet shopping behaviour in Singapore: gender and educational issues. International Journal of Consumer Studies, 31(3), 310–316. https://doi.org/10.1111/j.1470-6431.2006.00554.x Sivakumar, A., & Gunasekaran, A. (2017). An Empirical Study on the Factors Affecting Online Shopping Behavior of Millennial Consumers. Journal of Internet Commerce, 16(3), 219–230. https://doi.org/10.1080/15332861.2017.1317150 Likert scale. (2020). In Britannica Online Academic Edition. http://academic.eb.com/levels/collegiate/article/605393 Wen, C., Prybutok, V., & Xu, C. (2011). An Integrated Model for Customer Online Repurchase Intention. Journal of Computer Information Systems, 52(1), 14–23. https://doi.org/10.1080/08874417.2011.11645518

Participation within the questionnaire...