Our research topic that has been selected is ‘Factors affecting online
consumer behaviour in Singapore.’
The most significant reason of picking this topic is to analyse and study the
online consumer behaviour of the people in Singapore.
The project will be focusing on the factors affecting consumer mainly while
buying consumer electronics primarily focusing on mobile phones and home
audio and cinema.
The reason why we selected consumer electronics is because the business has
experienced a positive growth over a past few years in the online retail
industry mainly from 2013/14.
To conclude that the factors stated in the literary review have a major impact
on the behaviour of the consumers while making a decision to purchase online.
Analyse the impact of the consumer electronics (mobiles, home cinema and
audio) on the e-commerce industry of Singapore.
Also, to provide suggestions to various online retailers on how to improvise on
online retail on the basis of the factors which affect online consumer behaviour.
The proportion of online shoppers has increased from 35% in 2007 to 50% in
In Singapore, internet spending in 2004 used to be S$ 425.3 per household and
its increased to S$ 609.8 per household in 2013.
Spending is expected to reach S$ 756 in 2016.
The most popular online shopping portal is Amazon (23%) and Qoo10.sg
Samsung has a market share of 38.4 percent which exceeds the market share
of Apple which is 20.3 percent.
Total value of consumer electronics sold in Singapore is SGD 3,296.4 million in
4According to Euromonitor
Mobile Industry & Home audio and cinemas
The sales of mobiles has increased from S$309.2 million in 2008 to
S$1191million in 2013.
Samsung is the market leader with 48.8% by volume followed by Apple.
The value of sales through internet retail has increased from S$ 5.8 million to
SGD 28.58 million in 5 years.
The volume of sales of home audio and cinema of 193.7 million in 2008 to
215.0 million in 2013.
Samsung is the leader with the highest net volume sales with 24.5%, followed
by LG Electronics at 22.0%.
The value of sales through internet retail has increased from S$ 4.84 million
to S$ 6.45 million in 5 years.
According to Euromonitor
Statement of Research problem
We aim to find out the main factors which determine the online purchasing
behaviour of the consumers with respect to mobiles and home cinema and
2) Physical attributes
5) Return Policy
6) Subjective Norms
National Library of Singapore
Qualitative Interviews with business/industry experts and consumers.
• Online Customer survey
Non delivery Risk
Weight, Colour, Size etc
EXCHANGE / RETURN
Ease of Use
Referrals, family, friends
Mode of Payment & Safe online
Look of the Product
RANGE OF PRODUCTS
H0: Whether perceived risks have an impact on online shopping behaviour
H1: Whether perceived risks do not have an impact on online shopping behaviour
H0: Whether return policies influence the online shopping behaviour.
H1: Whether return policies do not influence online shopping behaviour.
H0: Whether range of products influence online shopping behaviour.
H1: Whether range of products do not influence online shopping behaviour.
H0: Whether brands influence online shopping behaviour.
H1: Whether brands do not influence online shopping behaviour.
H0: The physical attributes attract consumers to shop online.
H1: The physical attributes do not attract consumers to shop online.
H0: Whether the price of the products available online is an Important factor which
stimulates online shopping behaviour.
H1: Whether the price of the products available online is not an Important factor which
stimulates online shopping behaviour.
H0:Whether subjective norms such as referrals of family or friends cater to online shopping
H1: Whether subjective norms such as referrals of family or friends do not cater to online
H0: Whether exchange policies influence online shopping behaviour.
H1: Whether Exchange Policies do not influence online shopping behaviour.
P- Value Test
Chi- Square Test
Regression & P-Value test
The P-values for the following are:
Independent Factors P-value
Delivery Options 0.028094
Physical Attributes 0.00052
Range of Product 0.394403
Return Policy 0.233208
Ease of Use 0.097351
Referrals from others 0.297263
Chi - Square
CHI STAT > CHI CRITICAL
59.41431 > 15.50731
We are 95% confident that there is a most important factor which
influences the consumers to purchase online.
From the analysis we have conducted that we found of that PRICE having
the maximum frequency is the most important factor which influences the
consumers to purchase online
Qualitative Questionnaires Analysis
LAZADA 42 %
AMAZON 35 %
QOO10 23 %
APPLE 55 %
SAMSUNG 24 %
SONY 9 %
HTC 6 %
OTHERS 6 %
CREDIT CARD 77%
DEBIT CARD 16%
CASH ON DELIVERY 7%
0 5 10 15
DELIVERY ON TIME
The managers should focus more on factors such as Price , Brand and Physical
Attributes. They should offer these factors to the consumers in such a manner so
as to entice them further to purchase online.
The manager could offer a combination of the most important factors while
advertising their products online.
The managers should also make sure as to what kind of products should it offer
online as well as pay heed to the physical attributes. The size of the products,
range of colours , weight of the product etc will have a huge impact on online
On time delivery is what the managers should also keep a track of. This is because
a quicker delivery of the product makes the online sales of that particular website
even higher as consumers expect a faster delivery.
Lack of Time: As a result, not many factors were covered in this research.
Sample Size: The sample size could have been made bigger and our answers
may have varied.
Limited Information over the internet.
Methodology might not be accurate: Some of the tools used might not have
provided us the accurate data.
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