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CRP Presentation Final

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CRP Presentation Final

  1. 1. Factors affecting online consumer behaviour in SingaporeVarun Rastogi Rohit Jagasia Ashwin Jaiswal Aishwarya Gupta 1
  2. 2. Introduction  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. 2
  3. 3. Research objectives  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. 3
  4. 4. Literature Review  The proportion of online shoppers has increased from 35% in 2007 to 50% in 2011.  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 (14.7%).  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 2013. 4According to Euromonitor
  5. 5. 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. 5 According to Euromonitor
  6. 6. 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 Audio.  Factors like: 1) Price 2) Physical attributes 3) Attitude 4) Risks 5) Return Policy 6) Subjective Norms 6
  7. 7. Data Sources SECONDARY DATA:  National Library of Singapore  Singstat.com  Euro monitor  Ebsco host  Google Scholar PRIMARY DATA:  Qualitative Interviews with business/industry experts and consumers.  Quantitative Surveys: • Online Customer survey 7
  8. 8. 8 CONCEPTUAL FRAMEWORK PERCEIVED RISKS Financial Risks Product Risks Convenience Non delivery Risk PRICE PHYSICAL ATTRIBUTES Weight, Colour, Size etc EXCHANGE / RETURN POLICY Ease of Use SUBJECTIVE NORMS Referrals, family, friends WILLINGNESS TO BUY Mode of Payment & Safe online transaction Look of the Product RANGE OF PRODUCTS BRANDS
  9. 9. Hypothesis  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. 9
  10. 10. Hypothesis  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 behaviour.  H1: Whether subjective norms such as referrals of family or friends do not cater to online shopping behaviour.  H0: Whether exchange policies influence online shopping behaviour.  H1: Whether Exchange Policies do not influence online shopping behaviour. 10
  11. 11. Analytical tools  Regression Analysis  P- Value Test  Chi- Square Test 11
  12. 12. Regression & P-Value test  The P-values for the following are: 12 Independent Factors P-value Price 0.001518 Brand 0.017908 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
  13. 13. Chi - Square 13  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
  14. 14. Qualitative Questionnaires Analysis LAZADA 42 % AMAZON 35 % QOO10 23 % 14 APPLE 55 % SAMSUNG 24 % SONY 9 % HTC 6 % OTHERS 6 % CREDIT CARD 77% DEBIT CARD 16% CASH ON DELIVERY 7% Samsung 31% LG 21% PHILLIPS 15% SONY 12% PIONEER 6% OTHERS 15% 0 5 10 15 BRAND PRICE SPECIFICATION EXCHANGE POLICY CONVENIENCE DELIVERY ON TIME
  15. 15. Managerial Implications  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 sales.  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. 15
  16. 16. Limitations  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. 16
  17. 17.  Consumer Electronics in Singapore. (2015, January 4). Retrieved March 5, 2015, from http://www.euromonitor.com/. [Last Accessed 14/02/2015].  Gan, L., Lee, D., Lingtay, K., & Wai, S. H. (2005). Online Marketing: A Boon or Bane for Business in Singapore?. Asia Pacific Business Review,  International Journal of Information Technology & Decision Making, 5(02), 317-329.  Ketchen, D. J., & Shook, C. L. (1996). The application of cluster analysis in strategic management research: an analysis and critique. Strategic management journal, 17(6), 441-458.  Lim, W. M., & Ting, D. H. (2012). E-shopping: an Analysis of the Technology Acceptance Model. Modern Applied Science, 6(4), p49.  Masoud, E. Y. (2013). The effect of perceived risk on online shopping in Jordan. European Journal of Business and Management, 5(6), 76-87.  Moshrefjavadi, M. H., Dolatabadi, H. R., Nourbakhsh, M., Poursaeedi, A., & Asadollahi, A. (2012). An analysis of factors affecting on online shopping behaviour of consumers. International Journal of Marketing Studies, 4(5), p81. 17 References
  18. 18.  Singstat (2014). GDP by Industry. [ONLINE] Available at: http://www.singstat.gov.sg/ statistics/browse-by-theme/national-accounts.. [Last Accessed 23/04/2015].  Sinha, J., & Kim, J. (2012). Factors affecting Indian consumers’ online buying behaviour.  Siyal, M. Y., Chowdhry, B. S., & Rajput, A. Q. (2006). Socio-economic factors and their influence on the adoption of e-commerce by consumers in Singapore.  Uddin, M. R., Lopa, N. Z., & Oheduzzaman, M. (2014). FACTORS AFFECTING CUSTOMERS’BUYING DECISIONS OF MOBILE PHONE: A Study ON KHULNA CITY, BANGLADESH. International Journal of Managing Value & Supply Chains, 5(2).  Willis Wee (2011). The Stats and Facts of Online Shopping in Singapore. [ONLINE] Available at: https://www.techinasia.com/the-stats-and-facts-of-online-shopping- in-singapore/. [Last Accessed 17/03/2015].  Wong, P. K. (2003). Global and national factors affecting e-commerce diffusion in Singapore. The Information Society, 19(1), 19-32. 18
  19. 19. THANK YOU 19

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