(Tiểu luận) final examination reportresearch proposal the impact of e commerce on consumerbehavior

More specifically, the empirical evidencedemonstrates how e-commerce companies create marketing tactics based on the analysis'sresults.Keywords: E-commerce, online shopping, consumer beh

FACULTY OF INTERNATIONAL BUSINESS

DEPARTMENT OF RESEARCH METHODS AND ECONOMIC FORECAST

-*** -FINAL EXAMINATION REPORT RESEARCH PROPOSAL: THE IMPACT OF E-COMMERCE ON CONSUMER

BEHAVIOR Subject: Research Methodology for Economics and Business

Lecturer: Nguyen Thu Trang

Hanoi, April 21st 2023

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No Full name Distribution (%)

CHAPTER 1: ABSTRACT 4

CHAPTER 2: INTRODUCTION 4

2.1 Introduction 4

2.2 Research Question 5

2.3 Research Objectives 5

CHAPTER 3: LITERATURE REVIEW 5

3.1 Factors influencing customers' purchasing decisions 5

3.1.1 Competitive prices 6

3.1.2 Customer service 6

3.1.3 Customer feedback 6

3.1.4.Trust and loyalty 6

3.2 Customer perception and attitude about e-commerce 7

3.3 Consumer behavior's significance in advancing e-commerce platforms' marketing strategies 8

3.4 The impact of e-commerce on customers’ buying behavior 8

3.4.1 Enhancing consumers' purchasing desire 8

3.4.2 The acceptance of e-shopping 9

3.4.3 The risk perception of consumer 9

3.5 Research gap 9

CHAPTER 4: RESEARCH METHODS AND DESIGN 10

4.1 Quantitative design 10

4.1.1 Research purpose 10

4.2 Data collection 10

4.2.1 Research strategy 10

4.2.2 Sample and population 11

4.3 Research design 11

4.4 Data analysis 14

4.4.1 Sample size determination 14

4.4.2 Data analysis method 14

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CHAPTER 5: RESEARCH SCHEDULE 15

CHAPTER 6: IMPLICATIONS AND CONTRIBUTION TO KNOWLEDGE 16

6.1 Scientific implications 16

6.2 Social implications 16

CHAPTER 7: REFERENCE 16

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The primary objective of the investigation is to collect quantitative data that will explainthe evolution of the phenomenon and how it affects customer behavior Based on theliterature that is pertinent to the project, the report also employs surveys to investigatecustomer behavior Additionally, the increase in online shopping is closely observed, acomparison of consumer behavior across countries is made This article supports researchquestions, including current trends, numerous issues with online purchasing, and crucialfactors that influence customer behavior

The conclusions also indicate that online shoppers' perceptions of risk and trust have asignificant effect on their purchases The most common reasons for shopping online arecustomer confidence, privacy concerns, and security concerns The consumers trust to awebsite affects their decisions to purchase More specifically, the empirical evidencedemonstrates how e-commerce companies create marketing tactics based on the analysis'sresults

Keywords: E-commerce, online shopping, consumer behavior, consumer concerns CHAPTER 2: INTRODUCTION

2.1 Introduction

Today, the marketing industry is experiencing increased competition because of thedigital age and the Industrial Revolution 4.0 Because marketing is integral to the expansionand development of the economy, it influences multiple aspects of daily life This is done toensure that a successful marketing system helps a nation's future The behavior of individualconsumers and the social environment will be affected as human civilization evolves and theenvironment changes, causing the changes This transformation also influences the wayconsumers live their lives: they shop for goods at different stores to satisfy their needs (Kim., 2016) The most significant aspect of corporate success in every industry is marketing.You must learn how to behave to receive this pleasure, otherwise, marketing will beineffective Additionally, e-commerce, a platform that facilitates electronic transactionsbetween consumers and businesses on the internet, has increased the pleasure of customers.Consumer behavior is the action that a person undertakes to carry out the procedure ofproduct selection, purchase, and consumption of items and services to satisfy their desiresand preferences

According to Kassim (2008), Kuan (2008), and Kim (2016), the worldbecomes more advanced leads more people becoming interested in shopping in currentmarkets One of the things that is allegedly luring customers away from traditional marketsand toward modern ones is consumer behavior This is because the product quality is seen asbeing higher and the price is perceived as being cheaper in today's market Customers alsolike how simple and adaptable modern shopping is Numerous transactions may now be

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completed online thanks to advancements in technology and telecommunications networks.

It is simple for buyers and sellers to conduct business online without having to meetpersonally

2.2 Research Question

The primary goal of this study is to examine "what influence e-commerce has on theoverall customer buying behavior," with the following supporting questions:

- What are the patterns of consumer purchasing behavior?

- Has e-commerce changed the way people make decisions?

- What is the preception of consumer on e-commerce?

- What is the relationship between consumer behavior and e-commerce?

2.3 Research Objectives

For this study, the following research objectives areestablished:

- To recognize and assess various customer purchasing patterns

- To investigate how e-commerce satisfies the buying behavior of its clients

- To explore how e-commerce platforms influence customer psychology and use morepotent stimulation techniques

CHAPTER 3: LITERATURE REVIEW

The internet has expanded swiftly over the past two decades, and an informationtechnology-driven global digital economy is likewise beginning to take shape Thanks to thelong-term growth of the internet, a dramatic increase in online users and high-speed internetconnections and the creation as well as application of contemporary technology for webdevelopment have occurred Most businesses that have an online presence handle theircoordination and fulfillment as well as their online marketing and sales operations through

an online shop or commerce platform Consequently, the development of various commerce companies has been exponential More individuals are moving away fromtraditional purchasing to one that depends more on internet buying The creation and use ofe-commerce platforms have had a worldwide impact The global e-commerce trend has beendefined as an upward ascent and is expected to continue increasing from 2021 to 2023 E-commerce is rising and is already steadily reducing the market share held by traditionalretail

e-3.1 Factors influencing customers' purchasing decisions

Millions of customers establish and sustain brand-new online shopping routines andbehaviors According to Voinea and Filip (2011), "new consumer" or new consumercategories have emerged recently and have risen greatly in terms of their economicrelevance These customers differ from those more common consumers in terms of attitudes,

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objectives, and buying habits Here, we'll explore a few of the major causes that affectcustomers' purchase decisions among the many other elements Reasonable prices, excellentcustomer service, positive customer feedbacks, and trust are some of the reported drivers.

3.1.1 Competitive prices

Prior research has demonstrated that consumers prioritize pricing above other making factors (Guo , 2020) Competitive pricing is still the key attraction for clientsand, thus, positively affects their purchase decisions Most consumers frequently search formerchandise offers at really low or even reduced prices One of the most vital factors for thefavorable outcome in e-commerce is still offering competitive prices (Urne, 2020).According to Tanir (2018), competitive pricing is one of the most considerable aspects thatinfluence up to 80% of consumer purchasing decision-making Additionally, he asserted thatapproximately 90% of internet shoppers are considered as "masters of deal hunting".Customers may now sign up for alerts from multiple e-commerce stores for a variety ofitems, making it easier to compare the offered goods Modern technologies and comparativeshopping engines enable this Consumers may find out the lowest and best rates availableright now for the products or services they desire with the use of this comparison

decision-3.1.2 Customer service

Another the major touchpoints that continues to impact how consumers decide what tobuy is customer service Wertz (2017) estimates that acquiring new customers is aroundseven times more expensive than maintaining an existing clientele Therefore, providingtop-notch customer service may increase sales and profits while also assisting companies tofinally stand out in the fiercely competitive market

3.1.3 Customer feedback

According to an online research from eMarketer, 61% of respondents said they readblogs, online feedbacks, and other customer ratings before making decision to purchase thenovel commodity or service More than 80% of respondents stated that these evaluationshad at least some influence on their purchase choices (eMarketer ., 2008) This thesis issupported further by a research (Urne, 2016), which declares that certain consumers mayfind the reviews provided on e-commerce platforms useful when making judgmentsregarding the real items Numerous favorable reviews also give prospective buyers furtherdetails about the product Product sales are greatly influenced by the functionality of theproduct, the popularity of the feedbacks, and the validity of the source

3.1.4.Trust and loyalty

Trust is indicated to be even more crucial in e-commerce due to the lack of rulescontrolling it and the fact that online services and products are sometimes not quicklyvalidated by customers (Gefen and Straub, 2004) Customers' perceptions of risk and theirtrust in online suppliers may both be seen as behavioral beliefs that may influence whether

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they make a purchase (Teo and Liu, 2007) Frequently, one of the main factors preventingpeople from making purchases from e-commerce websites is a lack of trust To maintain along-term relationship between the client making the purchase and the online retailer, trust

is regarded as the essential element Consumer trust and loyalty are strongly intertwined.Without the loyalty pact, even the best-designed e-business model would fall short Inaddition to making more purchases from the company, devoted consumers regularly referrednew friends and relatives to the online store, creating another lucrative stream of revenue.Referrals may be valued in traditional trade, but the Internet magnifies this effect since

"mouse and keyboard" information spreads far more quickly with a few clicks than by word

of mouth (Reichheld & Schefter, 2000)

3.2 Customer perception and attitude about e-commerce

In e-commerce, it is crucial to investigate the connection between customer preferences

and income The consumer theory in economics is a significant theory in this context thatanalyzes how to balance the relationship between customer preferences and budget tomaximize product utilization (Leboff, 2011) The theory emphasizes that consumers attempt

to maximize the value they receive for the money they spend on a product while taking intoaccount the restrictions that financial constraints place on their alternatives The theory alsoexamines how customer preferences, substitution, and income affect the purchases theymake

Many societal influences and environmental factors can impact behavior For the success

of the finished goods, it is crucial to comprehend consumer behavior A business mustunderstand the factors that influence consumer purchasing decisions to be effective with itsE-commerce strategy Few products are appealing to all consumers; therefore, an internetstrategy should concentrate on figuring out the values of the market via survey, focusgroups, and psychological analysis Businesses can then use this information to inform theirfuture strategy (Park and Kim, 2008)

Businesses can communicate with their current and potential new customers successfullythanks to e-commerce Companies must be conscious of how their products are perceived

by their consumers, although, as online, and conventional clients are very different from oneanother (Huang et al., 2009) Advertising a product through a website with a design focused

on relevant, in-depth, and engaging material that appeals to the buyer is one way to portrayproduct quality Online shoppers pay close attention to factors like product cost and valuefor money E-commerce sites should successfully accommodate user requirements.Consumers contrast how they believe a product performs with predetermined criteria.Results are confirmed when the observed behavior is in line with expectations; otherwise,disconfirmations occur On other hand, confirmation and rejection determine consumer’shappiness and dissatisfaction (Varadarajan and Yadav, 2002)

However, consumer attitudes play a significant role in understanding internet shoppingbehavior Sharma (2011) enumerated six elements to assess how customers perceive online

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shopping: risk perception, control, convenience, price, service quality, and website usability.

He listed the factors as follows: affordability, quality of service, control, and degree ofdifficulty Several factors that may influence a customer's online buying behavior arecategorized into four primary categories: the product's value, the online experience, thequality of the service, and the perceived danger of doing so Retailer size and reputationimpact consumer confidence as well

3.3 Consumer behavior's significance in advancing e-commerce platforms' marketing strategies

Consumption is a significant aspect of human behavior (Liu Yaya, 2020) Consumptionhas become one of people's most fundamental societal behaviors because of the rise of theconsumer society Human society has progressively evolved into a more ideal consumersociety because of the ongoing development of productive forces Contrasted with theimpoverished era of agricultural society, the modern consumer society enables people toappreciate material possessions through consumption and shopping Consumption has overtime evolved into a type of societal philosophy and one of the most significant avenues forachieving happiness (Cao Shuwen, 2022) As it attempts to strengthen the discipline'sconceptual foundation, consumer behavior research consistently innovates in tandem withthe rise of social production Due to the advent of the Internet era and the spread of e-commerce platforms, the study of consumer behavior has grown increasingly specialized inrecent years The marketing approach of e-commerce platforms is becoming more heavilyinfluenced by consumer behavior The contribution of customer behavior to the marketingstrategy of e-commerce platforms has also grown dramatically

The marketing of the e-commerce platform covers a wide range of activities (Zhai Jinzhi,2020) To encourage product delivery, the e-commerce platform itself must rely onconsumer purchasing patterns Because online purchases do not take place in person, the e-commerce platform must pay special attention to consumer demands to achieve theobjective of developing a comprehensive service terminal Additionally, there is arequirement to maximize service quality improvements The use of big data platforms, usertracking, and data analysis that was modified to consider the user's purchasingcircumstances to display pertinent information on the platform are some of the ways thatconsumer behavior can assist the e-commerce platform marketing system as much aspossible in this process The expansion of market research through consumer behavior, thecreation of conducive environments for monitoring consumer behavior and promoting thefurther growth of e-commerce platforms are all facilitated by the promotion of goods andsimilar prices based on understanding customer purchasing requirements

3.4 The impact of e-commerce on customers’ buying behavior

3.4.1 Enhancing consumers' purchasing desire

Customers have more convenient options, and shopping opportunities have risen Lack oftime has caused the trend of online sales to grow increasingly prevalent, and many

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individuals now choose to internet shopping for products and services Working individualsand professionals buy the services they need at their homes or places of business since theylack the time to travel to markets They respect online shopping for all its advantages(Mittal, 2013) Additionally, e-commerce sites frequently provide sizable promotionaldiscounts, such as Shopee Sale or Lazada Such promotional reductions can spark clients'attention and persuade them to make a purchase in four elements: product psychology,pricing psychology, advertising psychology, and promotion psychology This drive topurchase frequently includes a variety of goods (Zhang Chuang, 2022) In other words,users will accumulate the products offered at the lowest price and progressively gain moreconfident in the e-commerce platform because of their rising need to buy.

3.4.2 The acceptance of e-shopping

The intrinsic and extrinsic variables that drive people to purchase and sell things onlinedemonstrate that this is a goal-oriented activity for the customers One of the main causes ofusing the internet is for its inherent components, such as entertainment This kind of internaldrive may contribute to consumers' adoption of internet purchasing These techniques alsopersuade customers to conduct online shopping Happiness and enjoyment are whatmotivate people to use the internet (Lima et al., 2016) Customers want to buy things onlinefor their satisfaction because they want to enjoy it and show that they trust technology Thiskind of shopping establishes the level of quality, usefulness, enjoyment, and trust On theother hand, trust and pleasure play a significant part in driving the adoption of onlinepurchasing

3.4.3 The risk perception of consumer

Consumer trust and perceived risk both have a significant impact on what they choose topurchase Consumer trust and privacy concerns are two key elements that affect onlineshopping These elements may affect consumers' purchasing decisions Some consumerscontinue to avoid making online purchases as they are dissatisfied with the goods’ quality or

do not feel secure doing so (Lip-Sam & Hock-Eam, 2011) Companies must uphold trustwithin their target market since consumers base their purchasing decisions on their level oftrust Many businesses lose potential clients and their credibility because they are unable todevelop trustworthy relationships with their customers online

3.5 Research gap

E-commerce has had great commercial success because of its openness and friendly business model It offers a very solid platform for expanding the company in themarket, as was already noted E-commerce has also been effective in gaining consumers'trust by improving the security of their personal data, which is regarded as its greatestaccomplishment Future success of e-commerce will be aided by this trust But just astechnology is evolving daily, so too are the market and the customer Customers' adoption ofnew technologies into their everyday lives is changing the needs and wants of the market

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