E Commerce between the Middle East and China

MacBride8 and Feuilherade1 have done separate research works on how the online shopping experience can be improved, but they have been limited by how to address the underlying challenges. This paper is set to improve the current rate of online shopping system in the Middle East with a focus on the Chinese market. More specifically, the paper focuses on the challenges facing the e-commerce system especially when it comes to payment options in the Middle East. To achieve this goal, the paper will use both qualitative and quantitative design methods. I argue that to improve the online shopping experience in the Middle East, looking at the e-commerce weaknesses and focusing on the underlying payment issues is salient. Currently, the use of the smartphones has improved the chances of shopping online. The experience has increased the opportunities for the youthful demographics to purchase items from the vast Chinese market.

Research conducted by PwC on the online purchase behavior in the Middle East revealed that more than 56% of the online users prefer to make their online purchases using their smartphones (Al-Imam et al. According to attitude theory of online shopping, the behavior of the consumers is determined by the level of difficulty of the experience “3. The study of the behavior reveals that the mode of making an online purchase and improving the online shopping experience is dependent on the expectations of the consumers 3. Compared to the 56% of the online shoppers in the region, there is a huge gap that needs to be filled (Singh & Singh)20. The condition of the online shopping system in the area has not been adequately developed, and as a result, the intended working relationship between the two countries has not been realized.

Purpose Statement The purpose of this research is to study and evaluate how online shopping can be improved in the Middle East countries. The research focuses on the Chinese e-commerce market and how the4 Middle East countries can strengthen their online shopping ties with the rest of the world. At this stage, the online shopping idea is gaining popularity in the region, but the full application of this phenomenon has not been realized 2. What is the indication of the level of satisfaction in the future of the online shopping consumers in the Middle East? 3. What are the current challenges faced by the Middle East countries in ensuring the perfection of the online shopping experiences? 4. How can the challenges be addressed to improve the online shopping processes within the Middle East countries? Research Objectives The objectives of the research are obtained from the research questions.

Based on the direction of the study, the following goals will be crucial for the proper establishment of the research process 1. To determine the current level of customer satisfaction through the online shopping experience in both the Middle East and China 2. Currently, China has an established e-commerce website database which specifically serves the Middle East countries. The limitations based on the payment methods and the overall online shopping procedures have reduced the effectiveness on the side of the Middle East countries to realize the impact of e-commerce “1. In addressing the methods through which these challenges can be handled, the significance of the study is realized. Equally, the paper seeks to develop an understanding of the depth of the relationship between the Middle East and China so that the business value of the two nations can be established “22.

Understanding the value of these nations is salient in the process of developing the e-commerce technology so that the business relations can be strengthened through online platforms. Lastly, the researcher will need a good knowledge of database and website application to understand the online market relationship between China and the Middle East. Definition of Terms Online Shopping/ E-commerce: according to the definition by Al Hosni et al5, online shopping is the act or the activity of making purchases over the internet without having to make a physical appearance. The online purchase allows the buyers to make their orders without having to get to the physical stores. E-payment: Abyad6 defines e-payment or electronic payment as the activity of doing all the financial operations through the internet. Financial transactions can be handled through the use of electronic devices like computers and smartphones.

Factors promoting e-commerce in the Middle East According to(Al-Somali et al)15, e-commerce in the Middle East has been promoted by the fact that the region is the world’s largest consumer of the mobile technology and internet connection. With 92% of the youthful population being in a position to access the internet, it is obvious that the market for e-commerce is improved in this way(Soufi & Maguire)19. The fact that a good population of the Middle East can get access to the internet is a confirmation that realization of e-commerce in the region is possible. Equally, the existing business relationship between China and the Middle East provides an appropriate platform where the two regions can work based on trust for the benefits of promoting e-commerce in the region. Research conducted by Firm Gartner Inc.

Since the deal between Amazon and Souq. com was sealed, opportunities for effective trading activities between the Middle East and China have been increased12. The business barrier based on the delivery technology has been reduced. Equally, China has established database and online support system which has been used by specific countries from the Middle East. The development of Alibaba and buytome. Rubin)13 did a research on the security of the payment system in the Middle East and it was discovered that the consumers fear the chances of data theft when making online purchases. Most of the consumers are not satisfied with the current security measures put in place to ensure safety of their funds and personal information. The biggest challenges arise when there is development of the use of Visa and MasterCardbut the retailers and general customers in the Middle East.

The application of both the Visa and the MasterCard is considered a complicated process hence posing threats to the security of the operations. A research done by (Jafarian & Zeynali)14, confirmed that the relationship between security and customer relationship is a challenge in the development of effective security in payment issues. The Chinese market and other parts of the world have not channeled their systems to cater for the mobile applications of the Middle East. Some of the retailers and other companies are connected with the online payment system but the specific technological infrastructure does not include the application of mobile technology. According to a research conducted by (Lai & Scheela)12, most of the online business users may have difficulties with making purchases on their mobile phones. The online market could be underutilized in this manner.

Online platforms have various interfaces which may be hard to handle. Figure 1: table illustrating factors inhibiting the success of e-commerce in the Middle East (Lai & Scheela) These factors affect the adoption of the technology in different ways. A study conducted by (Lai & Scheela)12 reveal the extent to which these factors affect the adoption of e-commerce. In their findings, the researchers established the rates and the specific values of each effect. The study established a grpahical representation of the extent of the challenges so that a way of addresing them can be systematic. The graph representation below indicates the extent of the challenges established. Equally, the selected research methods will be the most appropriate means of achieving the research process as both the qualitative and quantitative questions will be effectively addressed. The qualitative data will be useful in understanding the specific challenges posed by the application of e-commerce in the Middle East.

Qualitative methods will equally be influential in the description of the solutions that can be best for the challenges identified. First, the research will define and clarify the factors of customer satisfaction. Distinguishing these factors will be a salient second step. com and online databases both from China and the Middle East will play an integral role in the selection of the research materials. Some of the customers that have had experiences with online shopping will equally be involved in the research so that an effective quality can be properly determined. The collection of data will involve the information gathered from the secondary sources as well as direct interactions with the individual clients for quality establishment. Both qualitative and quantitative data will be collected for the process of analysis. The primary sources will include direct interviews with specific respondents who are active in e-commerce.

Figure 3: Factors for improving customer experience(Soufi & Maguire)19 Data Sample and Population The researcher will consider printing about 300 questionnaires which will be randomly distributed to different respondents. The number of questionnaires which will be recovered will be used for the analysis process and this will be the sample of the research study. All the questionnaires will be distributed in the Middle East region and the responses will be used in the analysis process. Methods of data Analysis Data mining and big data tools will play an integral role in the analysis of the collected data. The questionnaires will limit the respondents to giving their responses based on the five scale system and this will make the application of big data tools very relevant in the process of the analysis. Shafiyah N, Alsaqour R, Shaker H, Abdelhaq M, Alsaqour O, Uddin M.

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