Presentation slide on the research about: Perceptions and Behaviours of Multigenerational Consumers towards Purchasing Clothing and Accessories Online

1. Fashion Shopping
in Malaysia:
Perceptions and Behaviours of
Multigenerational Consumers towards
Purchasing Clothing and Accessories Online
By : Lim Joe Yi, Tang Ker Nee, Hang Lai Man

2. INTRODUCTION
INTERNET
A global computer network that
provide unlimited and variety of
knowledge; communication facilities
that consisting of interconnected
network using standardized
communication protocols.
----------Oxford Dictionaries.
Became an essential media for
communication, education,
entertainment, electronic trade,
etc…
1990
The first introduction of
Internet to Malaysia.
By Internet Service
Provider (ISP).
1996
TMNET promoted
Internet widely in the
whole Malaysia.

3. E-COMMERCE
Purchase and selling goods or services via Internet.
According to a report from Statista, the e-commerce market,
excluding e-services in Malaysia for 2016 is expected to reach RM4.1
billion in revenue, while the global e-commerce industry is projected
to surpass RM 14.5 trillion within the next five years
B2C
Business to Consumer
Business model that is
conducted by a party
to unlimited buyers.
B2B
Business to Business
Business model that is
between companies
and requires careful
planning.
C2C
Consumer to Consumer
Business model that is
connected two
individuals privately.

4. ONLINE SHOPPING IN MALAYSIA
Online shopping business being introduced in Malaysia since 1998.

5. Statistic above show the spending of Malaysian in online shopping.

6. PROBLEM STATEMENT
“Age matters with digital shoppers.”
- Nielsen Global Study of E-commerce (2016)
Growth in online purchase among the
older generation is not in line with the
growth in Internet usage.
Younger generation (18 to 34 years old) are
leading in the fashion online shopping industry
by making use of online technology.
- (Havas Global Prosumer Report, 2014)
As the age range increases, the most difficult
demographic to get to shop online are those people
who are over 65 years old.
- (Brown, 2014)
Older generation’s technology usage and willingness to partake in
online shopping is far behind younger generations

7. STUDY OBJECTIVES
Research is carried out among the Malaysian citizens comprising of Generation
Z, Millennials, Generation X and Baby Boomers:
● To understand the perceptions and behaviours of multigenerational
consumers towards purchasing clothing and accessories online
● To evaluate if the differences in age demographics influence consumer’s
attitudes and behaviours towards online shopping
● To identify the factors affecting fashion online purchasing intention among
different age groups
● To evaluate problems encountered in online purchasing that would affect
online purchasing intentions of different generations
● To find out the solutions for the issues faced by fashion online shoppers

8. Younger generation consumers in Malaysia
prefer to shop online than in
bricks-and-mortar stores as compared to
the older consumers.
HYPOTHESIS

9. ASSUMPTIONS
Younger generation:
1) Prefer online purchasing as
their alternative shopping
channel
2) Spend most of their time
and money in buying
products from the Internet
3) Focus on convenience,
price and variety of goods
sold online
4) Irrational and easily
influenced
Older generation:
1) Find online purchasing
troublesome
2) Do not shop online as
much or refuse to
purchase clothing and
accessories online
3) Focus on the quality and
fitting of products, security
and the trustworthiness of
online vendors

10. LITERATURE
REVIEW

11. ONLINE SHOPPING
- “ activity or action buying goods or
service over internet” -Oxford
Dictionaries.
- TaoBao, Zalora, Amazon …...

12. The largest
population : baby
boomers ( 74.33
million)
: Generation Y-
68.39 million
: Generation X -
64.58 million
: Slients generation-
226.82 million.
The population of Generation

13. BABY BOOMERS
- Born in 1946-1964
- 53-71 years old
- largest generation around the world
- Digital immigrants
: born before the innovation of
advanced technologies and the digital
- Pew Research Center (2010), it stated
that the numbers of older baby
boomers willing to purchase goods or
service online is higher than the
Millennials.
: high earnings

14. GENERATION X
- Baby Busters
- born during 1965 -1979
- 34- 54 years old
- The second largest generation who go online
- high earning and high spending
- busy in pursuing their career and child rearing
- have the good and strong skills on gadget

15. GENERATION Y
-According to Kavanagh, (2016),
generation y had occupied 44% of
the population in Malaysia.
-age range of 18 to 34
(1981-2000)
-generation Y have income, they
will just spend it
High purchasing
power
- Digital native
- -strong abilities in
technologies

16. GENERATION Z
- below 17 years old and born below 2000
- less spending online purchasing
- ability to change and bring impact to their
parents
- spend lesser money but they spent more
time on online

17. PERCEPTIONS & BEHAVIOURS
BABY BOOMERS
Perception:
1. lack of confidence,
2. they are less likely to use
technology to shop
Behaviour:
1. paid more attention on the
product quality ( clothing)
2. High loyalty towards some
ventor
3. Cannot find things that related
to them

18. Generation X
Through Losing( 2016)
1.convenience factor
2. better prices
3.possibility of price comparisons.
Perception:
1. Convenient, save time ( busy pursuing
their job and family)
2. Better prices
Behaviour:
1. Willing to spend more
2. Loyalty to certain
favourite brand
3. Read more review on the
websites

19. Generation Y
PERCEPTION
1. Varies of product
2. Convenient and fast
3. Feel safe on online
purchasing
4. concern onto the inability
to touch, feel and try on
the product.
BEHAVIOUR
1. Likely to spend their cash as
quickly as they acquire
-Buy now pay later
2. Need more time to do a
purchasing decision
3 . more emotionally in choosing
product
4. less loyalty to each vendor

20. Generation Z
PERCEPTION
1. Convenient
2. Varies of choice
Behaviour
1. Concern on the product
quality
2. Less loyalty towards online
shopping
3. Do research before purchasing
( keep up-to-date to the trend

21. FACTORS THAT AFFECTS MULTIGENERATIONAL
CONSUMER’S INTENTION IN ONLINE SHOPPING
CENTENNIALS (GENERATION Z)
Psychological Factor
● Research on products whether is worth their time, money and values.
● Trust online reviews and comments more than a friend’s recommendation.
● “Forty percent of centennials will not purchase a product if there are no
photo of people using the products” (by ReviewTracker from PowerReview)
MILLENNIAL
Technology Factor
● The biggest group to use technology in their daily life
● Spend an average of 25 hours per week on smartphones. (by AdAge)
● Check the smartphone approximately 150 times in a day. (by tapbuy)
● Do not prefer shopping online but it consumed the least time to purchase.

22. GENERATION X
Financial Factor
● Respond to digital and traditional advertising at the same time.
● According to the data by KPMG, they are the generation that buy the
most.

23. BABY BOOMERS
Products Factor
● Showed lesser on online shopping because are less motivated on
any price rebate or discount.
● Quality and branding are more to them.
● According to the data from KPMG, this generation spent most in
every transactions.

24. ADVANTAGES OF
ONLINE SHOPPING
“The use of the Internet as a shopping
medium has empowered shoppers with
advantages over traditional storefront
shopping.” (Chang, 2003)

25. CONVENIENT &
TIME SAVING
◇ Easy to access (anywhere,
anytime according to
personal freedom)
◇ 24 hour / 7 days availability
◇ Shopping can be done
faster
◇ Avoid crowds during fitting
◇ Provide wider selection, viable
alternative
◇ Larger catalog of brands,
colours and sizes
◇ Obtain products that is
unavailable or rare in local
areas (eg: Winter clothing and
equipment stores in Malaysia)
VARIETY

26. ALTERNATIVE SOURCE FOR
PRODUCT RESEARCH
◇ Retrieve recommendations &
reviews
◇ Get sufficient information on
the quality and size of
products
◇ Able to check on the
product’s availability and
information before buying in
outlets
“67% of the consumers among 25
countries said that either reading or
writing social media reviews and
comments influences their online
shopping behavior.” - PwC’s Global
Total Retail Survey, 2016

27. LOWER PRICES
◇ Get better information on prices
and offers between different
vendors, save money
◇ Easier to compare prices on the
screen / online shopping
websites (eg. Taobao provide
system to compare prices)
◇ Lowered cost & prices - retail
intermediaries was cut off &
great competition between
online vendors
◇ Online coupons, groupons &
promotion codes
◇ Offers deals, rebates and
discounts, especially during the
festive season
◇ Global Shopping Festival &
Events (11.11, 12.12, Black
Friday, MYCyber Sales)
COMPARISON OF
PRICES

28. DISADVANTAGES OF
ONLINE SHOPPING
PRODUCTS SECURITY
EXTRA CHARGES PRIVACY
“The challenges faced is higher
when products are purchased
online as compared to in physical
stores.” - (Tan ,1999)

29. PRODUCTS
◇ Product risk: probability of the
item failing to meet the
performance & requirements
originally intended
◇ Not fitting, unsuitable products
◇ Low quality products that will
not function well
◇ Lack of touch, feel , try on
experience
◇ Delay in delivery / not receiving
the product paid for
EXTRA CHARGES
“Consumers have been expressing their
concerns over delivery and return of
products purchased online.”
- Vijayasarathy and Jones (2000)
◇ Spending more money
◇ Shipping, exchanging and
returning fees
◇ Flat rate shipping fee, (eg.
Zalora provide free shipping
with a minimum purchase of
RM75)

30. SECURITY CONCERNS PRIVACY RISK
VISA, MasterCard and Paypal
were reported to be the top
3 most preferred online
payment method by U.S.
and Canada online buyers in
2015.
-Bizrate Insights (2016)
“The major concern of E-shopping are the ‘security of online payments’ and ‘privacy of
personal information’.” - Park and Kim’s study on Korean online consumers (2003)
◇ Communicating credit/ debit
card information (expiry dates,
PIN number) over the Internet is
very risky
◇ High possibility of being
scammed
◇ Losing money via credit card
fraud
◇ Personal information exposed
due to online transactions
◇ Private information supplied to
third parties by online vendors
◇ Not trustworthy

31. RESEARCH
METHODOLOGY
Quantitative research method:
Survey Questionnaire
(Online Google Forms)
Random convenience sampling
100 Malaysian respondents
From various age group, gender
and occupation

32. SURVEY FINDINGS

33. SURVEY FINDINGS

34. SURVEY FINDINGS

35. SURVEY FINDINGS

36. SURVEY FINDINGS

37. SURVEY FINDINGS

38. SURVEY FINDINGS

39. SURVEY FINDINGS

40. SURVEY FINDINGS

41. Majority of respondents :
Malaysian citizens
19 to 29 years old
65 % from younger generation
Female
Students
ANALYSIS

42. YOUNGER GENERATION
Millennials & GEN Z
Respondents below 40 years old
OLDER GENERATION
GEN X & Baby Boomers
Respondents above 40 years old
SHOPPING
IN
OUTLETS
prefer
prefer
ANALYSIS

43. Despite being the generation of “digital natives”, similar
survey results was reported in:
Forest City Enterprises, 2014 : Shopping at physical stores
ranked above virtual shopping experience among 13 to 24
years old consumers in United States.
Accenture Retail Customer Research, 2017: 77% of
Millennials (Gen Y) and Generation Z consumers in United
States prefer shopping in physical outlets.
ANALYSIS

44. 100
Malaysian Respondents
68
Have experience in shopping
for clothing & accessories
online
32
Never purchased clothing &
accessories online
ANALYSIS
Prefer to shop in
outlets even though
they have knowledge
of Internet shopping

45. ◇ Money and time spent was not as much by respondents who
are mostly younger generation
◇ Students
◇ Do not have a permanent source of income.
ANALYSIS
RM 100 - RM500
Spent on online shopping annually
purchase online
Once in a few months

46. 65%
Younger generation
(Millennials & Gen Z)
in this survey
ANALYSIS
-Established since 2003
-Well-known for low-priced products
despite some ongoing issues with
consistency in quality
35% of respondents chose pricing,
i.e. the ability to buy cheaper
apparels and accessories online
than in outlets, as the main factor
affecting their online shopping
behaviour, followed by convenience
and variety
Most visited
vendor website

47. ANALYSIS
60%
Prefer shopping in outlets
due to able to try on clothing &
accessories to make sure it fits
89%
Faced the problem of
purchasing unfitting clothing and
accessories online
The fitting of products is not solely the concern of
the older generation but may also affect the
intention of younger generations to shop online

48. ANALYSIS
Younger consumers are
Not easily
influenced
would think twice and
gather enough
information before
purchasing from an
unknown online vendors
More to agree that the online shopping is a hopeful
field that be encouraged among Malaysians as
respondents would trust online vendors
HOWEVER

49. HYPOTHESIS
Younger generation consumers in
Malaysia prefer to shop online than
in bricks-and-mortar stores as
compared to the older shoppers.

50. Both younger and older generation Malaysian
consumers remain loyal to shop
in physical outlets
ANALYSIS
“Online shopping is relatively new and is not spread that widely in
Malaysia, and just beginning to take its place as an alternative shopping
channel for consumers.”
- E-Commerce: A Study on Online Shopping in Malaysia (Chua et al., 2006)

51. - Scott Constance,
PwC Senior Executive
Director (The Star, 2016)
“In Malaysia,
people still want
to come to the
store and order
things!”

52. RECOMMENDATIONS
CUSTOMERS
- Make sure & look closely on the information, terms & conditions
given on online websites
- Only purchase from online vendors who :
Have good reputation
Clear process in solving problems, returning & refunds
Display systems for protecting the security & privacy of
personal financial details
Provide their business registration number and contact details

53. RECOMMENDATIONS
ONLINE VENDORS
- Analyse the best marketing channels or solutions for different age
groups
- Designed simple, user-friendly websites
- Provide good customer service & products
- Apply Secure Sockets Layer (SSL) for their online website to
guarantee customer’s financial and personal information to be
disclosed

54. RECOMMENDATIONS
MALAYSIAN GOVERNMENT
- Enforce online protection policies for online consumer
- Example:
Canada Digital Privacy Act 2015
- clear rules from collecting, using and disclosing online
consumer’s information to reduce security risk
Australian Competition and Consumer Commission
(ACCC)
- ensure a variety of choices, better quality and prices
- guarantees consumer’s right to ask for a repair,
replacement, refund, cancellation if any problem occurred

55. LIMITATIONS
● Do not have enough time to study the topic thoroughly. It is a big
topic although it was minimized the online shopping category to
clothing and accessories.
● Understanding new terminologies is challenging challenge for us.
In-depth research have to be done to ensure that we do not
misunderstand it and affect the research outcome.
● When conducting the survey, certain age groups were hard to
gather such as the age group of 30-39, 60 and above and have
majority of respondents from the age group of 19-29 years old.

56. CONCLUSION
-set out to get an in-depth understanding and
research on issues related to the relationship between
online purchasing and multigeneration.
- both younger and older generation, prefer to shop in
brick-and-mortar outlets
-still lack confidence and trust in utilizing the Internet
-
-find methods and solution in promoting online
shopping

57. ANY QUESTIONS?