Prospective factors to involve in different e business models in bangladesh

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Prospective Factors for involving in different e-business models in Bangladesh
Chapter 1: Research Objective
The objective of this project is to identify “Prospective Factors for involving in different
e-business models in Bangladesh”. This project is done in order to analyze all the
prospective factors influencing investors or people involve in e-business in
Bangladesh.
Many Bangladeshi companies currently distribute their images through the Internet
to clients all over the world, but the monetary transactions take place through
conventional means. Some companies put messages on bulletin board, on ' internet
yellow pages' with email links, and sometimes web pages, but there never is a place
to submit a credit card. This is because currently the government does not permit
credit card charges over the internet. However, the ISPs in Bangladesh do have the
technology for e-business, e-business and are anticipating governmental approval in
near future. In this circumstance, prospective factors will gain advantages for
companies before involving in e-business. We have identified few questions to be
answered-
1) What are different e-business models in Bangladesh?
2) What are the benefits behind involving in e-business in Bangladesh?
3) What are the prospects in current e-business models in Bangladesh?
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Chapter 2: Introduction
E-business is the term to describe the information systems and applications that
support and drive business processes, most often using the World Wide Web. E-
business allows companies to link the internal and external processes more
efficiently and effectively, and work more closely with suppliers and partners to
better satisfy the needs and expectations of their customers. With e-business you can
communicate across the country with customers, or simply using email to broadcast
product news and information.
The Advantages of E-Business that If you have even no money you able to do
business in this wise. Firstly, you can market research for firms which want to
increase their export/import. Because you have a big opportunity in order to reach
up-date International Trade Data. You can earn money as brokerage in this way.
After then you can invest yourself and establish own your firm.
Many Bangladeshi companies currently distribute their images through the Internet
to clients all over the world, but the monetary transactions take place through
conventional means. Some companies put messages on bulletin board, on ' internet
yellow pages' with email links, and sometimes web pages, but there never is a place
to submit a credit card. This is because currently the government does not permit
credit card charges over the internet. However, the ISPs in Bangladesh do have the
technology for e-business, e-business and are anticipating governmental approval in
near future.
E-business has a significant impact on business costs and productivity. E-Business
has a chance to be widely adopted due to its simple applications. Thus it has a large
economic impact. It gives the opportunity for “boundary crossing” as new entrants,
business models, and changes in technology erode the barriers that used to separate
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one industry from another. This increases competition and innovation, which are
likely to boost overall economic efficiency.
E-business is a way of conducting business over the Internet. Though it is a relatively
new concept, it has the potential to alter the traditional form of economic activities.
Already it affects such large sectors as communications, finance and retail trade and
holds promises in areas such as education, health and government. The largest
effects may be associated not with many of the impacts that command the most
attention (i.e. customized product, elimination of middlemen) but with less visible,
but potentially more pervasive, effects on routine business activities (i.e. ordering
office supplies, paying bills, estimating demand).
Most importantly, we need to keep in mind that there might be various factors
which are very much prospective for someone to involve in e-business. For this
reason we are doing a research on “Prospective Factors for involving in different e-
business models in Bangladesh”.
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Chapter 3: Background
In the year 1997, private Internet Service Providers (ISP) launched Internet in
Bangladesh. Since then, the infrastructural development in the sector of
telecommunication has helped spread the Internet network around the country.
Right now more than 6.5 million people are using Internet in the country with the
help of around 200 registered ISPs and dial-up services and the cost of using Internet
is low. The increasing number of user of Internet creates more opportunity of e-
business in the recent years.
In order to cope with the present world, almost all of the financial organizations and
international businesses in Bangladesh enter in the information highway through
hosting website. Banks and other financial organizations have started online
transactions like fund transfer, payment etc.
Now competitive advantages determine whether a company can move forward. E-
business can be the right tool for gaining competitive advantage nowadays. Business
now goes online. Some restrict the definition of e-business only to internet enabled
transactions while some others defined broadly saying not only internet rather
telecommunication and telecommunication based tools are also involved in e-
business activities. In Bangladesh perspective, the broader definition is accepted to
all.
Like traditional business, e-business does not involved only in buying and selling of
goods and services rather includes inter-company and intra-company functions like
negotiations and transactions, manufacturing and marketing etc. using email,
Electronic Data Interchange (EDI), fax, file transfer, video conferencing etc.
Depending on the involvement with electronic means, a company can be either a
complete or partial e-business user. Usually e-business is done in four forms:
Business to Business (B2B), Business to Consumer (B2C), Consumer to Business
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(C2B) and Consumer to consumer (C2C). However, Business to Government (B2G)
transaction may also exist.
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Chapter 4: Problem Definition
The objective of the research is to find out what are the prospective factors that
influences investors to involve in different e-business models in Bangladesh. To
identify the possible factors at first we went through an Exploratory (Qualitative)
marketing research to identify some necessary steps for having a clear concept
about our main purpose or objective of the study. The problems are given below-
I. Core Problem:
“What are the Factors those can affect involvement in different e-business
models in Bangladesh?”
II. Marketing Research Problems:
o What are the most prompt factors those may have significant influence on people
investing or involving in e-business?
o Based on which factors, should the investors of e-businesses be more concern
while providing service to mass consumers?
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Chapter 5: Approach to the problem
5.1 Theory Development
To identify the prospective factors for involving in different e-business models in
Bangladesh, we have conducted an exploratory research and according to that we
have found some prospective factors. They are:
 Security
 Development of IT infrastructure
 Reliability
 Online Payment System
So these above factors are may be prospective for involving in e-business. These
factors are to be described under the research design. Then for data collection I have
selected a sample size of 40 respondents and for analyzing data I have determined
the relevant analysis technique and finally the findings will be interpreted with the
existing body of knowledge.
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5.2 Model Development
For the marketing research process, I followed and used some “Mathematical
Models”. I used Multiple Regression Equation to identify the components known
as dependent and independent variables and their relationship among one another
and their impacts on the research. The Multiple Regression Equation is given below
Y (Involvement in e-business) = x1. (Security) b1 + x2. (Development in IT
structure) b2 + x3.(Reliability) b3 + x4.(Online Payment System) b4
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5.3 Information Search
E-business is changing the way people do business. From big corporations to small
industries, businesses are going online, opening up their products and service
offerings to new groups of people worldwide. There are many ways to get your
products and services online, from simple shopping sites to high-end database
driven, data-capture and online credit card verification solutions. We aim to cater to
all of our clients’ needs and give our clients access to all that the web can offer their
businesses.
Now from customer perspective, while shopping online there are few things in their
mind. First, if there is any problem on the system or not. Second, if there would be
any problem on transaction or regarding product or service quality. Then they will
go for decision making process. However, various sources of information include:
Personal sources Commercial
sources
Public sources Personal experiences
Example:
A person was seeking for purchasing “Air Ticket” for “Air Asia”. Now he heard
from one of his friend’s that there are two payment systems for that particular
airlines. One is Online another from their ticket booth. But online payment system is
not that good. So definitely that person will go physically to ticket booth to purchase
the air ticket. So in this case customer used his personal source and there was an
issue of reliability and security.
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5.4 Alternative Evaluation
We can pull the previous example over here. The person seeking for purchasing “air
ticket” will search for alternative options. There could be many scenarios, if it is
secured for him he may go for online purchase. Nevertheless there some necessary
factors involved like payment confirmation issue, reliability issue, etc. For instance if
he gets any discount on different company for buying air ticket online, he may
change his mind.
Chapter 6: Relative constructs of the study
6.1 Security
Basic maxims of e-business are fundamental to the conduct of secure business
online. Further to the fundamental of e-business providers must also protect against
a number of different external security threats, most notably Denial of Service (DoS).
These are where an attempt is made to make a computer resource unavailable to its
intended users though a variety of mechanisms discussed below. The financial
services sector still bears the brunt of e-crime, accounting for 72% of all attacks. But
the sector that experienced the greatest increase in the number of attacks was e-
business. Involving in e-businesses must have to be concerned in the security matter.
The main reason is customers will be using service online so it is very important
keep their information secure. Also there comes privacy issue. Most customers
buying products or services online, thinks about security and privacy first, as they
are paying or using services from a virtual system.
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6.2 Development of IT Infrastructure
In businesses today, few are unaware of the power of e-business to transform whole
organizations. Yet any organization hoping to exploit its potential must develop an
infrastructure that can cope with the demands of e-business.
Many e-Business opportunities fail due to inadequate infrastructure. With Building
the e-Business Infrastructure discover how one can successfully exploit e-business
opportunities.
Put simply, e-business is the application of sound business principles via modern,
global, technology-based communications media. As such, it reaches far and wide,
affecting everyone from staff to management, players to competitors. e-Business
must address business models, values, operational dynamics and include both
audience and enterprise.
Infrastructure determines how easily corporations can respond to the increasingly
urgent demands of its executives, how they can respond to the 'fast-food' data
requirements of modern business, and the competitive nature of a global
marketplace.
The technical infrastructural elements of e-business consist of Internet and server
technologies, hardware and software. That is, the Internet, intranets, extranets,
networks, security solutions and a myriad of applications promoting customer
relationship management, knowledge management, business intelligence, integrated
supply chain management and many others.
However, infrastructure is much more than technology. It is the dynamic interaction
and management of strategy, skilled people, tools and processes. – It drives and
must be driven by e-business. Discover how you can create an organizational
infrastructure that supports e-business with this report.
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There should be an EFT (Electronic Fund Transfer) Gateway, which will connect all
finance and banking institutions, ATMs, POS and related websites. Such Gateway
will speed up the transactions among banks, commercial institutions. This sort of
infrastructure needs to be implemented on priority basis.
6.3 Reliability
In general, reliability (systemic def.) is the ability of a person or system to perform
and maintain its functions in routine circumstances, as well as hostile or unexpected
circumstances.
In case of customer reliability on different e commerce sites, totally depends on
virtual aspects and strong brand image. For example one company selling gifts
online, must have to come up with ideas that can take place on customers’ mind
ladder.
6.4 Online Payment System
Collecting revenue from sales lies at the heart of running any type of business. To
collect revenue smoothly, various payment methods through the medium of coins,
paper money etc., developed over the centuries. With the development of E-
commerce, new types of relationships started to emerge in business settings. This
type of virtual commerce has presented some challenges and opportunities to both
merchants and customers. E-commerce is ubiquitous and thus anyone can transact at
any time from any place. On-line commerce has enabled customers to overcome the
handicaps of time and space. For merchants, it is the challenge of satisfying
customers. To ensure the power of E-commerce, merchants need to innovate newer
forms of payment that will free customers from the need of carrying paper money.
In the process, E-payment system has emerged.
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Basic payment systems: There are five main types of payment systems. Cash
payment is the earliest form of payment. It is a legal tender defined by national
authority to represent value. It is the most common form of payment in terms of
numbers of transaction made today. What is the most striking feature of cash that
has made is so successful? Cash is the most liquid form of payment that is instantly
convertible to any other form of asset and can be exchanged without use of any
intermediary.
With the evolution of banking system, cheque emerges as a dominant form of
payment. In this form, funds are transferred directly through signed cheques from a
customer's account to a merchant's account or to other individuals. In terms of
numbers of transaction, cheque is in the second position. But it is the most used
method of payment in terms of total amount spent.
Another newer format of payment is credit card which extends credit to consumers,
thus permitting them to purchase items while deferring payments. It also allows
customers to pay to multiple vendors at a time.
Traditional cell phone recharge card is a good example of stored value, which is yet
another form of payment. In this method, payment values are stored either by the
customer or by some intermediary. Debit card and gift certificate belong to this
category.
And there is yet another form, accumulating balance in which expenditures are
accumulated and consumers pay periodically. We are very familiar with this as we
have to pay WASA or electricity bill every month.
E-payment systems: The emergence of E-commerce has created newer types of needs
in response to newer types of relationship between parties of transaction. Beyond the
buyer-seller relationships, peer-to-peer payment system has emerged to allow
individuals to email payments to each other. But credit card has remained the
dominant form of E-payment on the Internet. In an online credit card transaction, the
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transacting parties never see each other. So it requires special authentication which
was not needed previously in cash or cheque payments.
Other forms of online payments are (1) digital cash, (2) online stored value such as
debit card, (3) digital accumulating balance payment, (4) digital chequeing accounts
etc.
In terms of convertibility, cash is unparalleled as it is easily convertible to any asset
without any intermediary. This is true for both customers and merchants. But
transaction cost for cash in big transactions is not small.
The concept of refutability comes with the evolution of cheque and credit. Here a
customer can repudiate his transaction to a certain limit. Cash transaction can't be
repudiated. Repudiation is a cost for merchants and an ideal payment system should
be repudiable up to a certain limit and cost should go to the responsible party.
Anonymity is another feature customers seek while transacting. But with the rise of
newer forms of payment system, this possibility is sacrificed due to security concern.
An ideal payment system should provide the provision of anonymity to low
amounts of transaction.
Newer payment systems are handicapped by hardware dependence like the need of
the Internet and computer while cash is fully hardware-independent. Actually any
dependence will de-popularize any system as customers want ease of use. If the time
and effort to learn a system is much higher than the benefit it gives, customers will
just avoid it. And security remains a major issue for both merchants and customers
as there are cases of credit card theft using the Internet. Customers are more prone to
such forgery. An ideal system will minimize such vulnerability and pass the risk to
responsible party.
E-payment for Digital Bangladesh: Generic online payment systems developed in
the USA and other countries in the first world have some problems that stand on
their way of becoming universally popular. One of the most basic problems is the
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lack of trust and the feeling of insecurity while transacting on the Internet. This
problem is tied to the problem of convertibility. There are many payment options
like Paypal, VISA, Mastercard, Digicash etc. creating a problem of inter-operator
acceptability. Some merchant web may accept Paypal, while not accepting VISA thus
creating problems for VISA users. Another security problem is created by the
involvement of many agents. Cash is initiated and managed by government
authority and thus is accepted anywhere. But in the online payment scenario, many
companies offering online payment system is creating a convertibility problem as
well as security problem. It is certain that, if a body like the Bangladesh Bank issues
the online credit card, then security problem will be the minimum.
If the present government plans to initiate an E-payment system in Bangladesh, it
may face a few big challenges. The first and foremost difficulty is the terrifyingly low
rate of computer literacy and Internet penetration. There is no specific statistics
regarding computer usage in our country. And Internet penetration is estimated to
be lower than 1.0% of the total population in our country.
The next big problem is posed by the absence of an intermediary body to initiate an
E-payment mechanism and oversee it. Again, there is no legislative framework yet
concerning E-payment system.
The Bangladesh Bank should form a body under a law passed by the parliament to
initiate and manage an E-payment system for Bangladesh. The main idea behind this
proposal is that, as cash is always initiated and authorized by governmental
authority, such an E-payment should also be authorized by the government. It will
induce mass acceptance and ease convertibility problem. This should be a non-profit
project of the government and increased transaction in the economy as a result of
this system will be the reward for the government for introducing such a system.
As mentioned above, an E-payment account should be based on the information of
national ID card. All banks should be made parts of this system. Cell phone should
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be used as the primary hardware in the day-to-day transactions under such an E
payment mechanism. For international transactions, the central body formed by the
Bangladesh government should sign MoUs with major E-commerce portals of the
world to accept its card or payment online.
Lastly, the slogan of Digital Bangladesh will remain just a slogan if the present
government fails to introduce such a system within its tenure. At the initial stage,
this might cost the government thousands of Taka. But ultimately it will pay off in
the increased growth in the economy as a result of more opportunities to transact.
6.5 Different e-business Models in Bangladesh
We really don’t know how common each business model is similar to the economy
and how successful are these firms in terms of their performance financially. Selling
gifts seems to be a blooming business when it comes to expressing happiness among
the love ones. The basic idea is selling love instead of a physical object. In terms of
giving it a definition, it’s the selling of intangible goods with tangible goods in
reality. But these businesses perform less than those business that which sell goods
that customers use. Durable goods are more preferable for this generation than non-
durable goods that hold a high value.
The common thing about these businesses is how firm makes money instead of how
firm provides service. For the look of it, the goods that are sold through these sites
add value that is above the margin of the original distributor. All these with the
insufficient value of service added into it. The pages for one don’t add the desire to
click on it again.
There is therefore, no value added service for the value of the service that is charged.
The strength of the business and the price to pay for it lays in the piece of part that
each business fit together with a strategic differentiation of how the business itself.
Meaning, if there is a price to pay for it, then the service provided should be
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differentiated then that of which the consumer can get by buying it him or herself.
The business and the consumers should not be considered as there is no tomorrow.
There should be a tomorrow and by this, the consumer has to be there to take part of
it. The consumers hold purchasing power and with this, the basic idea that has to
hold to this point is that, they have to be served well so they come tomorrow again.
Provided that tomorrow, is always a new day for the consumer at the site.
It’s not about the company itself. For the government to earn a high foreign currency
there should be enough space for these businesses to consumer firms to expand.
With the restriction in terms of development, these businesses will never grow.
Apart from that, assuring consumers protection in terms of internet fraught, there
should be laws implemented to protect both the firms and the consumers.
Apart from these, the more the consumers enter the websites, the greater is the value
of the page itself. If the company goes public, then it is likely it will hold a greater
value in terms of share price and the business environment will grow.
There has been some problems & prospects identified after observing different e-
business strategic groups in Bangladesh for example, clickbd, cellbazar, bdjobs, ssl
commerz, deshigreetings.com, amarbill.com, boimela.com, etc.
Problems:
1. Absence of secure payment mechanisms.
2. Absence of cyber law
3. Absence of card payment system
4. Limitation in internet uses.
5. Lack of government level of E-commerce issue
6. Transaction is geographically limited
7. Very minimum number of user of websites.
8. High price of computer and hardware in terms of living standards.
9. Small number of credit card users
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10. Limitation of supportive legal system
11. Absence of cyber law
12. Poor electronic payment
13. Lack of technically efficient payment
Prospects:
1. Expand the idea of national market to global market.
2. Improving the communication from buyer end to seller end
3. Reliable information should be available so that there is no confusion from
customer end
4. Improved customer service to satisfied customer and generate sales
Chapter 7: Research Question and Hypothesis Development
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In the earlier part of our marketing research process, through Exploratory
(Qualitative) research, we had identified some prospective factors like- Security,
Development of IT infrastructure, Reliability & Online Payment System those may
create significant influence on involving in different e-businesses in Bangladesh. To
measure the influence of these factors, we need to conduct some Research Questions
(RQs) and Hypothesis (H). We need these Hypotheses to prepare our Research
Questionnaire for generating the opinion of the potential investors. So, we have
developed Research Questions (RQs) and Hypothesis (H) in the following way:
7.1 Research Questions
Q1) Does the security issue has any significant influence on the investors to involve
in e-business?
Q2) Does the development of IT infrastructure affect involving in e-business?
Q3) Does the Reliability issue convey any importance to the investors involving in e-
businesses?
Q4) Does the online payment system matters while involving in e-business in
Bangladesh?
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7.2 Hypothesis
Based on the Research Question, we have developed following hypothesis:
H1: Positive consumer perception on e-business depends on security
H2: Increase in e-business opportunities depends on development in IT
infrastructure
H3: Prospective e-business depends on reliability
H4: Online payment system will increase involvement in e-busines
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Chapter 8: Research Design
 To find out the triggering factors, we have conducted the research in the
“Exploratory Research Design” format.
 There has been an Approach developed for further research and done to find
and fix its components like- “Objective/Theoretical Foundations, Analytical
Model, Research Questions, Hypotheses and Specification of the
Information needed.”
 Now we will shift to a Quantitative approach known as “Conclusive
Research Design”. Because its will be more efficient, structured and formal
design process. Data analyzing are more reliable in this approach. So now we
will conduct the “Descriptive and the Causal Research” to meet the proper
accuracy on our marketing research process.
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Chapter 9: Questionnaire Design
Based on exploratory research we have developed 25 questioners (four for
dependent variable and the rest of the question on independent variable). This
research included questions considering four factors- Security, Development of IT
infrastructure, Reliability & Online Payment System. A Likert scale was used to
question the respondents on the five point scale. The respondents were asked to rate
on the scale between Strongly Agree and Strongly Disagree.
This research aims to study prospective factors to involve in different e-business
models in Bangladesh. This project primarily uses quantitative tools with help from
qualitative information. For quantitative results, the research design involves
descriptive research using survey method. Thus a structured questionnaire has been
used to elicit the specific information. The sample size used for the project is 40
respondents.
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Chapter 10: Data Collection
The data which collected for the purpose of study is divided into 2 bases:
 Primary Sources: The primary data comprises information survey of
“Prospective Factors for involving in different e-business models in
Bangladesh”.
 Secondary Sources: The secondary data was collected from internet and
references from library, previously done projects, etc. There are some
literature reviews collected from different newspapers of Bangladesh.
There are lots of websites which have loads of information on e-business and
e-commerce, I have used over here.
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Chapter 11: Demographic Factors
11.1 Gender
Gender No. of respondents
Male 22
Female 18
While interviewing respondents, who were students of a private university (EAST
WEST UNIVERSITY), service holders, SME owners or businessmen, most of them
turned to be male participants. Around 55% of them were male and the rest 45%
were female.
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11.2 Income Level
Income Level No of respondent
Less than 30,000 15
More than 30,000 25
This information is quite important for this research on e-business because potential
involvement in e-business may depend on investing capital. I think students from
Private universities, SME owners or businessmen have the capacity of investing in e-
business as 67% has a monthly family income more than 30000 BDT.
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11.3 Occupation
Occupation No. of Respondent
Student
20
Others
2
Serviceholder 8
SME Owner 4
Businessman 6
Here we can see that 50% of the students are not engaged in any profession.
Whereas, on the other hand, 20% are service holders, 15% are businessmen and 10%
are SME Owners. From the previous diagram if we try to communicate, students
who have monthly family income of more than 30000 are the potential e-business
investors for whom this research paper will be a frame work before investing.
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Chapter 12: Data Collection Method
We have collected our data from those respondents who have idea about e-business
and interested in involving in e-business. After that, according to this we were able
to filter our respondent.
Chapter 13: Sample Selection
To select the sample we have used non-probabilistic sampling method and which is
convenient sample. A sample size of 40 was used to conduct the research.
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Chapter 14: Reliability
Reliability test for measuring dependent variable (by using 4 items)
Reliability Coefficients
N of Cases = 40.0 N of Items = 4
Alpha = .6381
Item-total Statistics
Scale Scale Corrected
Mean Variance Item- Alpha
if Item if Item Total if Item
Deleted Deleted Correlation Deleted
Prospect1 20.7667 6.7876 .3708 .6031
Prospect2 21.4556 6.2059 .2233 .6605
Prospect3 21.2000 5.8022 .3628 .5983
Prospect4 21.3111 6.0145 .3414 .6057
Interpretation: The reliability test of dependent variable for the six variables has
been extracted from the reliability analysis. From the previous exploratory research
the alpha stands to be .6381, which means that all the independent variables had an
internal consistency of 63.81% among each other. Again individually from the
column alpha if item deleted we can see that all the independent variables are above
0.5 and so there won’t be any significant change if any of the independent variables
are deleted.
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Chapter 15: Measurement of the variables
For dependent variable we have 4 items and remaining 14 items was for measuring
independent. Reliability and internal consistency of the multi item scales for each of
the constructs were measured using Coefficient Alpha. And finally we use R2
value
to determine how much our independent variable can explain the dependent
variable.
Dimension Number of Items Alpha Values
Security (independent) 4 .7361
Development of IT Structure
(independent)
3 .5406
Reliability (independent) 4 .5848
Online Payment System
(independent)
3 .5024
Involvement in e-business
(Dependent)
4 .6381
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Chapter 16: Data Analysais Result & Findings
16.1 Analysais Techniques
Once the reliability analysis was done, we calculated the mean value of dependent
variables and independent variables. Finally, we completed the analysis part
through regression analysis.
16.1.1 Hypothesis Testing:
In this section our hypothesis based on the six factors that influence the patients for
selecting any private hospital.
1. Ho: Positive consumer perception on e-business does not depend on
security
H1: Positive consumer perception on e-business depends on security.
The observed table shows that Security has a Positive influence (β=.213) for
involving in e-business models in Bangladesh, as customer s require their payment
security while online transaction. Also we can see that P value (.021) is smaller than .
05 and we know a p-value less than 0.05 would result in the rejection of the null
hypothesis at the 5% (significance) level. So, H1 is accepted and H0 null hypothesis
is rejected. And that is, positive consumer perception for involving in e-business
depends on “security” issue.
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Independent Variables Standardized Regression
Coefficient (β)
t value P
Security .213 2.347 .021

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2. H0: Increase in e-business opportunities does not depend on
development in IT infrastructure
H2: Increase in e-business opportunities depends on development in
IT infrastructure
Coefficient (β)
t value P
Development of IT
infrastructure
.163 1.681 .097
The observed table shows that development of IT infrastructure in e-business
has a positive influence (β=.163) for involving in different e-business models
in Bangladesh. And as we can see that P value (.097) is larger than 0.05 and
we know a p-value less than 0.05 would result in the rejection of the null
hypothesis at the 5% (significance) level. So, H2 is rejected and Ho null
hypothesis is accepted which is Increase in e-business opportunities for
involving in different e-business models in Bangladesh does not depend on
development in IT infrastructure.
3. H0: Prospective e-business does not depend on reliability
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H3: Prospective e-business depends on reliability
Coefficient (β)
t value P
Reliability .383 3.309 .001
The observed table shows that reliability for customer perspective has a Positive
influence (β=.383) for involving in different e-business models in Bangladesh. Also
we can see that P value (.001) is smaller than .05 and we know a p-value less than
0.05 would result in the rejection of the null hypothesis at the 5% (significance)
level. So, H3 is accepted and Ho is rejected. And that is, more customer reliability is
ensured, more prospects in e-businesses in Bangladesh.
4. H0: Online payment system will not increase involvement in e-
business
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H4: Online payment system will increase involvement in e-business
Coefficient (β)
t value P
Online Payment System .096 .960 .340
The experiential table shows that introducing online payment system has a positive
influence (β=.096) on consumers which will help investors to involve in different e-
business models in Bangladesh. Despite above, we can see that P value (.340) is
larger than 0.05 and we know a p-value less than 0.05 would result in the rejection
of the null hypothesis at the 5% (significance) level. So H4 is rejected and H0 is
accepted which is introducing online payment system will not increase
involvement in e-business.
So, we can summarize that throughout the whole report after analyzing 4
independent variables we had developed hypotheses out of which only two were
accepted, and they are Security & Reliability. Generally, these two factors have
great significance in case of involving in e-businesses in Bangladesh.
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16.2 Regression Analysis
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .636 .404 .361 .38
From the regression analysis, we have found that the Value of R Square is (.404).
That means independent variable (Security, Development in IT infrastructure, reliability
& Online Payment System) has 40.4% impact over the dependent variable (Involvement
in e-business). In other words, the dependent variable (Involvement in e-business)
can be influenced 40.4% by the independent variable (Security, Development in IT
infrastructure, reliability & Online Payment System).
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16.3 Discussion
In this study of “Prospective factors for involving in different e-business models
in Bangladesh”, we tried to find out the factors which may increase the probability
of investing and involving in e-businesses in Bangladesh. The 4 factors (Security,
Development in IT infrastructure, reliability & Online Payment System) are tested
by conducting a Regression Analysis.
The result indicates that two out of four factors (Security & Reliability) has
significant influence on for involvement in different e-business models in
Bangladesh for investors. On the other hand Development in IT infrastructure,
reliability & Online Payment System did not show any significant influence before
investing in e-businesses in Bangladesh.
Perhaps according to our findings investors are giving less attention to
Development in IT infrastructure & Online Payment System and are prioritizing
Security & reliability issue before investing.
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Chapter 17: Limitations
 As we have selected the convenience sample for conducting our research and it’s
already has some argument so that we think we may have overlooked some
potential respondent who may give us the more accurate answer.
 The R2
(.404), is comparatively low which suggest that there are other such
prospective factors which can also influence the investors to involve in e-business
in Bangladesh. Further study should include other factors except those we
consider here. Also as Development in IT infrastructure & Online Payment
System are rejected in this study so further research should focus into
Development in IT infrastructure & Online Payment System to find out the
reasonable outcome.
Though we have measured reliability for the dependent variable (involvement in e-
business), we have measured reliability for all the independent variables also. The
results are shown below.
VARIABLE ALPHA
Security (independent) .7361
Development of IT Structure (independent) .5406
Reliability (independent) .5848
Online Payment System (independent) .5024
All these four independent variable above have positive relation with dependent
variable (0.6381) which was positive. So here we see no reason to delete any of the
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factors and we can firmly say all the factors are important to get involve in different
e-business models in Bangladesh.
Hence there is a scope for conducting further future research on this field to identify
any more faults on our findings or maybe to test the generalizability of this research.
Moreover as the report finds that the variables present in our research have an
influence of 40.4% for involving in different e-businesses in Bangladesh. However,
there is a scope for further research in future to identify other variables that has the
rest 59.6% influential factors for involving in different e-business models in
Bangladesh.
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Chapter 18: Conclusion and Recommendation
18.1 Conclusion
In Bangladesh e-business is in growth stage. A very few people are having internet
facility. So people are still unknown about e-business. The people who are having
internet they are not that must interest because they are unable to see the product
before buying. They can see that virtually not physically. From buying from the
internet there is no chance of bargaining. Consumers are also having lack of security
and reliability. But in our country e-business has a great potentiality. Because day by
day the number of internet users are increasing. This is better for e-business. So, we
can say that the scenario will be changed within next 5 to 10 years.
There are other extraneous variables which may play a significant role like Bank
involvement, features, discounts/offers for involving in e-business. But as they do
not preferably play a heavy role so we haven’t considered these factors. But so far
discussions articulate the fact that security and reliability in e-business plays a very
significant role for involving in e-businesses in Bangladesh.
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18.2 Recommendation
From the regression analysis, some recommendations can be inferred on the
following areas to develop current e-business situation in Bangladesh.
• To be more secured there should be law implemented and cyber law
might be introduced.
• Government can use those banks who are facilitating e-payment for more
security and monitor them regular basis.
• Introducing Online Payment where it is possible.
• Offering benefits or discount for involving in e-business which may open
a new door for revenue generation for the country.
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Bibliography
- Malhotra, J 2007-2008, “Marketing Research”, 5th
Edition, Prentice-Hall, New Delhi.
- Previous reports and journals relevant to the private hospital.
- Relevant paper and published documents on private hospital.
- A Research report on “Consumer evaluation of beautification products: Effects of
Extrinsic cues” by Dr. Md.Humayun Kabir Chowdhury
- A Research report on “Generalizability of Perceived Quality Measures: An
Evaluation” by Dr. Md.Humayun Kabir Chowdhury
- A Research report on “Consumer evaluation of beautification products: Effects of
Extrinsic cues” by Dr. Md.Humayun Kabir Chowdhury
- A Research report on “Consumer Perception of value: A Multi-item scale for its
Measurement” by Dr. Md.Humayun Kabir Chowdhury
- E-Business and on line banking in Bangladesh: an Analysis, Muhammad Mahboob
Ali, Copyright © 2010 American International University-Bangladesh (AIUB)
- E-payment for Digital Bangladesh, Nezam Uddin, Journalist, Bangladesh Financial
Express, http://www.thefinancialexpress-bd.com/2009/07/13/72877.html
- Strategic Management, Competitiveness and Globalization, 7th
edition, Michael A.
Hilt, R. Duane Ireland, Robert E. Hoskission.
- E-business Models for Different Strategic Groups in Bangladesh: A Competitive
Analysis, Rizwanul Gias, East West University
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Some other useful web links:
- http://webscience.ie/blog/2010/security-issues-in-e-commerce/
- http://www.ecommerce-digest.com/ecommerce-security-issues.html
- http://www.google.com/url?sa=t&rct=j&q=development%20of%20it
%20infrastructure%20for%20e-
business&source=web&cd=4&ved=0CEsQFjAD&url=http%3A%2F
%2Fwww.psut.edu.jo%2Fsites%2Fraad%2FeBusiness_notes%2FChapter
%252003.pdf&ei=-
D2MT6yXJMSQiQe69MTcBw&usg=AFQjCNFf928Rgy5_eXumQ4w4gYZ77EykT
g
- http://www.business-intelligence.co.uk/reports/ebus_infra/default.asp
- http://www.talkstats.com/showthread.php/960-alpha-p-value
- http://en.wikipedia.org/wiki/P-value
- http://en.wikipedia.org/wiki/Reliability_(disambiguation)
- http://bangladesheconomy.wordpress.com/2009/11/03/bangladesh-bank-introduces-
online-payment-system/
- http://www.onlinepaymentbd.com/
- http://www.google.com/search?
aq=0&oq=online+payment+system+in+&sourceid=chrome&ie=UTF-
8&q=online+payment+system+in+bangladesh
- http://www.dnfight.com
- http://www.alexa.com
- http://www.safe-browsing.net
- http://www.webandsite.com
- http://www1.american.edu/carmel/ap1579a/ecom.htm
- http://wiki.answers.com/Q/Advantages_of_e-business_databases
- http://www.oppapers.com/essays/E-Business-In-Bangladesh/379621
http://www.oppapers.com/essays/Future-Of-E-Business-In-Bangladesh/535523
- www.celbazaar.com
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- www.itidjournal.org/itid/article/viewFile/761/321
- http://www.oppapers.com/subjects/prospects-of-e-commerce-in-bangladesh-
page4.html
- www.velki.com/e-business
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