Online Purchase Intention in Hong Kong

86 trillion US dollars in 2016 and e-retail revenues are projected to grow up to 4. 48 trillion US dollars in 2021 (Statista, 2016). It, therefore, means that the global electronic commerce rapid growth is increasingly revolutionizing customers purchasing behavior. The present age of information and technology is transforming the manner in which suppliers and firms relate with consumers as they become empowered. The empowerment makes the era of information technology in marketing challenging as competition is becoming more inherent. However, according to the same conducted by Stump, Maddox and Gong (2013), the 420 million users of the Internet in China only a portion of 78 million do online shopping. It. therefore, means there are numerous factors that influence the manner in which Chinese online business market is adopted. 1 Objectives of the Study Thus objectives of this research study are significant in several aspects.

First, the study is to investigate different factors that have an influence on customer’s online shopping intention in Hong Kong. Thus, they will be able to plan, make appropriate budgets for designing useful websites, product promotions and other marketing purposes. Furthermore, the study would provide an appropriate contribution for researchers, academicians and future scholars in the adoption of online shopping in China and other countries and cities. 0 Literature Review This section undertakes the past research in online shopping. The studies have been undertaken for purposes of determining the manner in which several factors influence online purchasing intention. It, therefore, reviews numerous works of literature on transactional security, perceived usefulness and use of perceived ease and the manner in which they influence online purchase intention.

Customer through Internet select product, purchase and make payments. It innovates a new shopping method for the customer, which is more flexible and convenient. Customer saves more time via shop online as they can shop anytime and anywhere, no matter they are working or traveling. Therefore, more people intended to shop online. Perceived Usefulness Customer through Internet select product, purchase and make payments. 1 Website Design and Perceived Ease of Use Internet as the platform to customer purchasing goods, website design featured very largely in online shopping. Therefore, the quality of website design is a supreme factor for the online shop to attract customer (Cho and Park, 2001). Website design present as an important to influence the customer satisfaction. Website design was found that influence the perceived service quality and customer satisfaction positively by a study of Lee and Lin (2005).

The Internet is used by a variety of age groups as a channel for acquiring services and goods. Besides, Online shopping convenience dimension is considered as a principal of motivations behind the preferences of customers easily adopting online shopping. Furthermore, the convenience of retail shopping dimensions includes search, access, possession and transaction, both which encompasses ease and speed concepts which enable the consumers to engage retailers, select and identify products, purchase products they desire and even amend transactions (Berry, Seiders & Gresham, 2000……). Thus, when considering factors influencing online purchasing intention then it is important to indicate past technologies adopted in areas such as M-commerce, e-commerce, and online banking among others. Therefore, customers interact with retailers through the website for information access to terms, delivery channels, and products specifications.

In addition, according to Lin and Sun (2009), a website provides a platform where online shoppers share information related to themselves with their e-retailers. Furthermore, if government of China protects consumers against risks and cyber-crimes, then most consumers will be inspired thereby making e-business to flourish especially in Hong Kong city (Yu & Abdulai, 2000). H2: Trust and security factor is significantly influenced by customer’s online shopping intention. 3 Delivery Risk Delivery becomes a customer perceived risk because some of the delivery agencies difficultly achieve the time frame for delivery. Product delivery had found a negative impact on customer purchase behavior in a study by Adnan (2014). Delivery risk presents a possibility that a particular product can be ordered, get paid for but fails to be delivered to the customer on time or even fails to be delivered completely.

Furthermore, all the above-discussed reviews can be represented in a conceptual framework. Figure 1 presents a research framework by using website design factor, trust and security factor, delivery risk, product performance risk and financial risk as customer’s perceived risk variables that are hindrances to their online purchase intention. Some recent study, trust and perceived risk (financial, product performance, delivery) have been analyzed extensively in the study in the customer’s online shopping intention (Cheung, Chan and Limayem, 2005). Figure 1: Conceptual Framework 3. 0 Methodology The section identifies the techniques and procedures that were deployed in carrying out the study such as processing, data collection techniques, and data analysis methods. Moreover, metric measures, chi-square tests and cross-tabulations were used during data analysis. In addition, descriptive tools of statistics assisted in determining and describing data which was collected.

Furthermore, in data analysis SPSS (Statistical Package for Social Sciences) was used in all areas where regression analysis and descriptive statistics were analyzed, carried out and finally tabulated. See Appendix A for Questionnaire sample. 3 Data Analysis and Findings The population targeted consisted of 150 participants of online shoppers in Hong Kong. Thus, the finding shows that there is a potential relationship between the intention of online shoppers and the perceived ease of use in purchasing products in online platforms. In addition, figure 2 below show the SPSS graph of the respondents’ ages. 16-24 Years 25-35 Years Above 35 Years Fig. 2: Respondents’ Ages 4. 0 Recommendation E-marketers in Hong Kong should use online shops that are easy and user-friendly to navigate in terms of procedures and understandability since systems that are more useful are those that use the technology can easily be used.

Also, websites should be simplified in terms of usage as it ensures that many customers will be inspired and at the same time encourage the retention of other customers which then improve productivity and increase business success. References Adnan, H. An Analysis of the Factors Affecting Online Purchasing Behavior of Pakistani Consumers. International Journal of Marketing Studies. Vol. Chang, H. H. , & Chen, S. W. The Impact of Online Store Environment Cues on Purchase Intention Trust and Perceived Risk as a Mediator. Dahlen, M. Closing in on the Web consumer – a study of internet shopping. Amsterdam: Elsevier Science Publishers. Flavian, C. , & M, Guinaliu. Kaplan. The Components of Perceived Risk in Venkatesan, M. (Ed. Proceedings of the Third Annual Conference, Association for Consumer Research.

Kim, J. A Comprehensive Analysis of Three Consumer Decision Strategies. Journal of Consumer Research, 2. Robert, P. B. , & Richard, B. , & Gronhaug, K. Perceived risk: Further considerations for the marketing discipline. European Journal of Marketing, 77(2), 203-220. Stump, R. , Maddox, L, & Gong, W. The Role of Perceived Risk in the Quality-Value Relationship: A Study in A Retail Environment. Journal of Retailing, 75(1). Thompson, T. , & J, Liu. Consumer Trust in Electronic Commerce in the United States, Singapore and China. Age (Tick One Box) 16-24 Years 25-35 Years Above 35 Years 3. What is your average shopping monthly expenditure ($)? 4. What are some of factors that influence your intention to make online purchase? ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… PART B Strongly Disagree Disagree Neutral Agree Strongly Agree I have intention for using online shopping in future I had used shopping before Online shopping is proper and good ides Online shopping is easy to use Online shopping is safe and secure.