Post on 03-Dec-2021
CONSUMER BEHAVIOR OF PERSONAL CARE PREDUCTS TOWARD ONLINE SHOPPING IN THAILAND
SAPANNARAT CHAICHANA
A THEMATIC PAPER SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF MANAGEMENT
COLLEGE OF MANAGEMENT MAHIDOL UNIVERSITY
2014
COPYRIGHT OF MAHIDOL UNIVERSITY
Thematic paper entitled
CONSUMER BEHAVIOR OF PERSONAL CARE PRODUCTS TOWARD ONLINE SHOPPING IN THAILAND
was submitted to the College of Management, Mahidol University
for the degree of Master of Management on
January 4, 2014
……………………….….…..……… Asst. Prof. Brian Hunt, Ph.D. Advisor ……………………….….…..……… Assoc. Prof. Annop Tanlamai, Ph.D. Dean College of Management Mahidol University
……………….………….…..……… Miss Sapannarat Chaichana Candidate ……………………….….…..……… Assoc. Prof. Sooksan Kantabutra, Ph.D. Committee member ……………………….….…..……… Asst. Prof. Winai Wongsurawat, Ph.D. Committee member
iii
ACKNOWLEDGEMENTS
I would like to express my sincere thanks to my thematic advisor, Asst.
Prof. Brian Hunt, Ph.D. for invaluable help and constant encouragement throughout
the course of this thematic paper. I am most grateful for his teaching and advising.
This thematic paper would not have been completed without all the support that I have
always received from him.
In additional, I am grateful for my friend, Mr. Khan Siringampen who
gave me an idea, assistance and suggestion in this thematic paper.
Last, but not least, many thanks to all of my participants who voluntarily
completed the questionnaire. Without them, there would no data to analyze and this
thematic paper would not have been completed.
Sapannarat Chaichana
iii
CONSUMER BEHAVIOR OF PERSONAL CARE PRODUCTS TOWARD ONLINE SHOPPING IN THAILAND
SAPANNARAT CHAICHANA 5549114 M.M. THEMATIC PAPER ADVISORY COMMITTEE : ASST. PROF.BRIAN HUNT, Ph.D., ASSOC. PROF. SOOKSAN KANTABUTRA, Ph.D., ASSOC. PROF. WINAI WONGSURAWAT, Ph.D.
ABSTRACT
The purpose of this study was to test hypotheses of the four factors that
influencing online shopping intention behaviour toward personal care products. The
factors were perceived benefit, perceived risk, service and perceived behavioural
control. Hypotheses were tested by regression analysis of data collected from 58
internet users who are in middle age.
The result of this study showed only perceived benefit was a significant
factor. Recommendations to internet seller were provided in the conclusion section.
KEY WORDS: Online shopping /Personal Care Products / Consumer Behaviour
25 pages
iv
CONTENTS
Pages
ACKNOWLEDGEMENTS ii
ABSTRACT iii
LIST OF TABLES vi
LIST OF FIGURES vii
CHAPTER I INTRODUCTION 1
1.1 E-commerce/Online Shopping 1
1.2 Household/ Household Products 1
1.3 Consumer Behavior 2
1.4 Problem 4
1.5 Objective of the Study 5
CHAPTER II LITERATURE REVIEW 6
2.1 Perception 6
2.1.1 Perceived Benefit 6
2.1.2 Perceived Risk 8
2.2 Customer Service 10
2.3 The Theory of Planned Behavior 11
2.3.1 Attitude toward Behavior 11
2.3.2 Subjective Norms 12
2.3.1 Perceived Behavioural Control 12
2.4 Gap of Literature 12
2.5 Theoretical Framework 13
2.6 Conclusion 14
CHAPTER III RESEARCH METHODOLOGY 15
3.1 Overview 15
3.2 Data Collection Methodology 15
3.3 Data Sampling and Measurement 16
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CONTENTS (cont.)
Pages
3.4 Preliminary Finding 16
CHAPTER IV RESEARCH FINDINGS 18
4.1 Respondents’ Age 18
4.2 Respondents’ Income 18
4.3 Online Shopping Experience 19
4.4 Hypotheses Test 19
CHAPTER V DISCUSSION 23
5.1 Conclusion 24
5.2 Recommendations 25
REFERENCES 26
APPENDICES 29
APPENDIX A: Questionnaire 30
BIOGRAPHY 32
vi
LIST OF TABLES
Tables Pages
1.1 Percentage of Population Aged 6 Years Old or above who Have
Ever Reserved or Bought Products or Services via Internet (In
Thailand)
4
3.1 Output from Factors Analysis 17
4.1 Online Shopping Experience 19
4.2 Regression Analysis for Perceived Benefit 20
4.3 Regression Analysis for Perceived Risk 20
4.4 Regression Analysis for Service 20
4.5 Regression Analysis for Perceived Behavioral Control 21
vii
LIST OF FIGURES
Figures Pages
1.1 Household Structures in 2009 2
1.2 Percentage of Population Aged 6 Years Old and above who
Have Ever Bought Products via Internet (only household
products illustrated) In Thailand, 2011 - 2012
3
2.1 Reason That Trigger Impulsive Spending 8
2.2 Reasons for Not Purchasing Online 9
2.3 Ranked Factors Based on the Impact the Level of Trust in
Companies That Consumers Buy From
10
2.4 Theory of Planned Behavior 11
2.5 Theoretical Framework 14
4.1 Ages of Respondents 18
4.2 Monthly Incomes of Respondents 19
1
CHAPTER I
INTRODUCTION
1.1 E-commerce/Online Shopping In the past two decades, the internet has occupied an increasingly
important role in social and business life. Business has been transformed electronically
into what is now called electronic (or e-) commerce.
Electronic commerce or E-commerce is an industry where producing,
distributing, marketing, buying and selling of products or services is conducted over
electronic systems such as the Internet and other computer networks (WTO, 1998). E-
commerce started in 1980. At first, commerce transactions happened from business to
business (B2B) while business to consumer (B2C) transaction was not successful at
that time until the World Wide Web started (Miva Merchant, 2011).
Online shopping is the main component of E-commerce. It is the process
of buying goods or services over the internet. Processes of online shopping include
customers selecting items by using shopping cart software, and after, going through a
payment process with delivery in the end. The benefits of online shopping are being
open twenty-four hours and seven days a week, convenience of access, quick time to
find the products online and low cost.
1.2 Household/ Household Products The National Statistics Office Thailand (NSO) provides the definition of
household as “the smallest group of persons living together, taking collective decisions
and making common provision for food and other essentials. The composition of a
household including factors such as its size, age, sex, marital status and education of
its members, are crucial in determining the roles and status of women and men within
it” (National Statistics Office Thailand, 2004).
2
The NSO has separated households into four types of living: extended
family (consisting of several generations living in one household), single family
(consisting of three structures; husband & wife, husband, wife and children, and
husband or wife and children), single, and persons who are not blood related. In 2009,
a survey illustrated that the single family was the highest percentage of family type in
Thailand (Figure 1).
In this paper, the structure of the household representing the single family
consists of husband and wife with/without kids.
Figure 1.1 Household Structures in 2009 Source: Compiled from National Statistics Office, Key Economic and Social
Indicators 2010 and Office of Women Affairs and Family Institution, Policy and
Strategy on Family Development, 2004 - 2013
Household products are products used in the household. Products include
electrical devices, groceries, household cleaners, personal care and so on. (U.S.
Department of Health & Human Services, n.d.)
1.3 Consumer Behavior E-commerce is growing very fast. The behavior of consumers has changed
from retailer to online shopping. Statistical data proves the benefits of online retailing.
3
Sales are continuously increasing through E-commerce. According to emarketer.com,
B2C e-commerce sales grew 18.3% ($1.298 trillion) worldwide in 2012, while in Asia
Pacific, the figure was more than 33% ($332.46 billion). In 2013, sales growth in Asia
Pacific continuously increased over 30% (over $433 billion) from the previous year, to
more than one-third of all the global market (eMarketer, 2013). In Thailand, B2C e-
commerce increased from 47.8% in 2010 to 57.2% in 2011 (SearchBlogAsia, 2011).
Many categories of products and services exist that consumers intend to
buy. A survey from the Nielsen Company looked at how consumers shop online, from
27,000 internet users in 55 countries from Asia Pacific (including Thailand), Europe,
Middle East, North America and South America in 2010. If focusing only on
household products, the top three household products that consumers intended to buy
were books, clothing/accessories/shoes and electronics, respectively (Nielsen, 2010).
Figure 1.2 Percentage of Population Aged 6 Years Old and above who Have Ever Bought Products via Internet (only household products illustrated) In Thailand, 2011 - 2012
Source: Survey of Technology and Communication Using in Household 2011&2012
(NSO, Thailand)
In Thailand, the NSO has conducted a survey to study e-commerce trends
(Figure 2) in 2011 and 2012. The report found that clothes and accessories was the
best-selling category online and there was a good trend of growth in the online market.
4
Moreover, food/beverage/healthy goods and electrical appliances showed opportunity
for growth in the market as well.
According to NSO, the highest percentage (68.8%) of consumers who
shopped online consisted of 25-49 year olds. They spent under 3,000 baht per time
(Table 1). The data shows that regular online consumers are middle-aged and
employed.
Table 1.1 Percentage of Population Aged 6 Years Old or above who Have Ever
Reserved or Bought Products or Services via Internet (In Thailand)
List Percentage
Age
6 - 24 years old 22.22%
25-49 years old 68.80%
above 50 years old 9.00%
Money spent
above 6,000 baht 25.80%
3,000 - 5,999 baht 17.20%
below 3,000 baht 57.00%
Source: Survey of Technology and Communication Using in Household in 2011
(NSO, Thailand)
1.4 Problem Personal care products were defined as hygienic products including
toothpaste, shampoo, deodorant, body and face wash, etc., skin-care such as
moisturizing lotions, lip-balm and facial treatment, and cosmetics including lipstick,
mascara, perfumes and other related products (Horn et al, 2011).
Personal care products are necessary for all families, and so there is
opportunity for SME to use the benefits of e-commerce and increase competitiveness
in the market for selling these products. Nevertheless, the products sold online mostly
consist of impulse purchased products such as fashion goods and electronics
5
equipment. Personal care products are used daily. However, this does not affect online
purchasing, according to the NSO survey.
1.5 Objective of the Study This paper focuses on personal hygienic products. In order to increase the
number of consumers buying through the internet, this paper studies the factors that
influence consumers to buy personal care products online.
Many examined factors affected online shopping behaviors and intentions.
Theory of Planned Behavior factors (e.g. attitude toward online shopping, subjective
norms and perceived behavioral controls) were tested in relation to their influence
toward online shopping intentions. Moreover, in the past, several researchers had
studied perceived benefit, perceived risk and service as factors.
This study attempts to develop prior research and study certain factors that
can be controlled by a manager such as perceived benefit, perceived risk, service and
behavioral control. Important variables affecting online shopping intentions toward
personal care products are to be studied.
The scope of this study includes consumers who are middle aged and able
to use the internet. Based on the statistics of this consumer group, it is likely that they
will make the decision to purchase on their own.
The study uses a questionnaire to collect data because this paper intends to
study numbers of people. In order to meet the target respondents of this study, the
questionnaire is submitted by online website.
In order to meet the aim of the study, the paper begins with a literature
review of the factors that influence consumers’ online shopping intentions. It follows a
data collection methodology and results study are reported. The discussion and
recommendations are addressed at the end of this paper.
6
CHAPTER II
LITERATURE REVIEW
Personal hygienic products are used for keeping the body clean and
helping prevent germs. People regularly use these products, at least three per day, and
people need to buy frequently. In order to reduce the cost of the retail store, the online
market is an opportunity for SME to get into the market, as the number of Thai
internet users are increasing. Based on data from the NSO, it increased from 22.4% to
26.5% from 2011 to 2012.
In order to encourage consumers to purchase hygienic products from
websites, it is important to understand consumer behavior about how and why
consumers intend to buy products from websites. The factors that influence online
purchasing are discussed in the literature review.
2.1 Perception Perception is a process by which an individual selects and translates
information in order to create a meaningful picture (Kotler, 2009). Various researchers
studied perceptions in relation to online purchasing. Perceptions can be positive or
negative, which affect the intention to buy online, so the study of online shopping can
be divided into two aspects; perceived benefits are identified positively and perceived
risks are identified negatively in order to influence behavior for online shopping (Hsu
et al, 2012; Thananuraksakul, 2007; Javadiet al, 2012).
2.1.1 Perceived Benefit
The perceived benefits of online shopping are convenience and time
saving without being restricted by store opening hours and location
(Atchariyachanvanich et al, 2008). Furthermore, online shopping also reduces the
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sorting time of consumers, helps make better decisions, and takes less time to wait for
the invoice (Jusoh et al, 2012).
Hsu et al (2012) have found that Mongolians are convenienced
significantly due to online shopping. Moreover, the availability and wide selection of
products, ease/comfort of shopping and an easily navigable website and the joy of
shopping online majorly affected online shopping intentions.
Another research in Thailand supports the result. The study showed that
the ease of use had a positive relationship, which would convince consumers to shop
more online (Prompongsatorn et al, 2013).
However, Thananuraksakul’s (2007) result was in contrast. She found that
convenience and time saving were not likely to be related to online buying intentions
at all in Thailand. Based on the results of Thai perception; shopping online was not
convenient and they did not mind shopping from offline stores, even though it was less
convenient than online shopping.
There are a limited number of researchers who have studied in terms of
cheaper price benefit. Based on a survey by MasterCard, the main reasons that
influence people to buy online are low price and discounts. (Master Card World Wide
Insight, 2008) (Figure 2.1).
There are some findings regarding price in Thailand. Thananuraksakul
(2007) found that Thai consumers perceived that price was not the main reason for
shopping online, the researcher having focused on the reasonable price of products.
In summary, perceived benefit provides positive results to encourage
consumers to buy online. Convenience, time saving, ease of use, cheaper prices and
varieties of selection were studied and the findings found that all of these factors
positively affected online shopping intentions.
8
Figure 2.1 Reason That Trigger Impulsive Spending
Source: MasterCard Survey Finding Conducted by IPSOS (Online Shopping in
Asia/Pacific- Patterns, Trends and Future Growth, 2008)
2.1.2 Perceived Risk
Hsu et al (2012) discussed that perceived risk is the consumer’s perception
about the uncertain consequence of buying products, and it affects the consumer’s
trust towards online shopping. Perceived risks are therefore considered as a barrier to
online shopping.
Regarding perceived risk having an effect on trust and being a drawback to
online shopping, various researchers have studied the variables of risk that negatively
influence consumer trust.
Hsu et al (2012) found that Mongolian customers perceived personal
information (privacy and security risks) as risk and this leaded them to mistrust online
shopping. Much research supports this result.
Thananuraksakul (2007) found that trust was relevant to online purchasing
intention and that it was an obstacle to online purchasing. Her findings supported
variables that she discussed in her literature. She mentioned that in perceived risk;
there were not only privacy and security risks, but also financial risks and product
risks. The risk of transaction was considered as a financial risk. Poor quality of
product was regarded as a product risk.
9
Javadi et al. (2012) have also studied risk and its influence toward online
shopping. They found that financial risk, product risk and the risk of no delivery risk
significantly affected consumer trust and intention to buy online.
Zhang et al. (2012) findings in China support the delivery risk. They found
that the speed of delivery encouraged consumer online shopping intentions because
customers were usually happy to search for new things. However, consumers would
put off online shopping if they experienced lost goods, damaged goods or packages
being delivered to the wrong destination.
Jusoh et al (2012) also found financial risk had a significant relationship
with online shopping.
In summary, perceived risk has a negative effect toward online buying.
Perceived risk is considered as privacy and security risks, financial risks, product risks
and delivery. A survey supports the research results that the most important reason
consumers do not purchase online for security concerns (Figure 2.2).
Figure 2.2 Reasons for Not Purchasing Online
Source: MasterCard Survey Finding Conducted by IPSOS (Online Shopping in
Asia/Pacific- Patterns, Trends and Future Growth, 2008)
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2.2 Customer Service Customer service is a service provided before, during and after purchasing.
Customer service provides an experience and procedures to satisfy customers
(TheTimes100). There is limited research about services being significant factors
toward online shopping intentions. Referring to marketingland.com, they reported that
according to Dimensional Research, customer service is the number one factor
influencing trust towards consumer purchasing from (Figure 2.3).
Figure 2.3 Ranked Factors Based on the Impact the Level of Trust in Companies
That Consumers Buy From
Source: Marketing Land.com
After-sales services include return policies and the processing of customer
complaints. Ming-Shen et al. (2007) suggested that an after-sales service that included
prompt response toward consumers’ complaints would increase the number of regular
online shoppers. On the other hand, Zhang et al. (2012) found after-sales services were
not a significant factor influencing consumer online shopping intentions.
11
2.3 The Theory of Planned Behavior Ajzan (1991) developed the Theory of Planned Behavior (TPB); the theory
has extended from the theory of reasoned action. The theory predicted behavioral
intention and controlled by three factors; these included attitude toward the behavior,
subjective norms, and perceived behavioral control. The intention would influence
behavior.
Figure 2.4 Theory of Planned Behavior
Source: (Ajzan, 1991)
2.3.1 Attitude toward Behavior
Attitude “is a mindset or a tendency to act in a particular way due to both
an individual’s experience and temperament” (Jeffrey Pickens, PhD, 2005). Attitude
toward online shopping has been defined as the consumer’s positive or negative
feelings toward online purchasing (Literature: Jusoh et al, 2012). Several researchers
have found that attitude is the significant factor that influences customer intent to
purchase online. (Jusoh & Ling, 2012; Javadi et al, 2012; Thananuraksakul, 2007;
Prompongsatorn et al. 2013; Hsu et al, 2012; Laohapensang, 2009; Ming-Shen et al,
2007).
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2.3.2 Subjective Norms
Subjective norms refer to the perceived social pressure to perform or not
to perform behavior (Ajzan, 1991). Thananuraksakul (2007) discussed in her literature
that subjective norms could be separated into three types;
The first was the external social norms such as government, companies,
media and advertising. The second was internal social norms such as relatives, parents,
colleagues and friends, and lastly, personal norms.
Previous findings from Thananuraksakul (2007) found that subjective
norms were likely to influence online shopping behavior as well as the subjective
norm being a factor influencing online purchasing intentions in Thailand. This result
was similar to Laohapensang’s findings (2009). Javadi et al. (2012) found that friends
and peers influenced Iran online shopping behavior.
2.3.3. Perceived Behavioural Control
Perceived behavioral control refers to the perception of ease or difficulty
of performing the behavior of interest (Ajzan, 1991). The task for this paper is to
observe the variable that may make the consumer have an easier experience in online
purchasing.
Thananuraksakul (2007) and Javadi et al. (2012) findings were the same.
Perceived behavioural control was not a factor influencing online shopping intention.
2.4 Gap of Literature Most of the researchers studied online shopping intention without
considering the degree of buyer involvement. The factors that influence intention to
buy online may be different between buyers who are highly involved and those who
are lowly involved. Further study in this paper focuses on low involvement.
Hygienic products (soap, toothpaste, shampoo, deodorant, body and face
wash, etc...) are products that have few differences between brands including the
behavior of consumers in making decisions based on brand familiarity. Therefore,
they are considered as low involvement products.
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2.5 Theoretical Framework The theory of planned behavior has various uses in order to predict
consumer behavior. There have been researchers that have utilized TPB in order to
study its influence toward online shopping behavior in Asia as well (Ming-Shen et al,
(2007); Thananuraksakul, (2007); Javadi et al. (2012); Hsu et al, (2012). They showed
that the theory has been accepted widely.
Further study on this paper focuses on online shopping intentions toward
personal care products (low involvement products). Based on literature, the variables
studied included perception, services, attitude toward online shopping, subjective
norms and perceived behavioral controls, those of which were influencing online
shopping intentions.
Because there was limited time for this study, perception (perceived
benefit & perceived risk), service and perceived behavioral control were the variables
used. Another benefit was that these variables, as mentioned earlier, allowed the
possibility of a manager being able to control them. The hypotheses were as following,
based on the theoretical framework in Figure 2.5
H1: Perceived benefit positively affects online buying intentions.
H2: Perceived risk negatively affects online buying intentions.
H3: Service significantly affects online buying intentions.
H4: Perceived behavioral control significantly affects online buying intentions.
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Figure 2.5 Theoretical Framework
2.6 Conclusion The literature illustrated the factors that influence consumers’ online
shopping intentions in Asia. The factors were convenience, time saving, ease of use,
price, risks, services, attitude toward online shopping; subjective norms and perceived
behavioral control. The purpose of study was to understand more about the behavior of
consumers who have the intention to buy via online internet sites.
However, the study rarely focused on product types. It focused on low
involvement products only by using personal hygienic products to represent this type.
The theory of planned behavior had been used extensively in online shopping behavior
research. Four hypotheses were studied based on TPB (Figure 2.4) since they were
related to managerial management.
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CHAPTER III
RESEARCH METHODOLOGY
3.1 Overview The purpose of this study was to analyze the variables that influence
intentions in relation to personal care online shopping in Thailand, by examining the
effect of perceived benefit, perceived risk, service and perceived behavioral control as
the hypotheses of study.
Based on theoretical framework, perceived benefit, perceived risk, service
and perceived behavioral control were independent variables while online shopping
intention was a dependent variable.
3.2 Data Collection Methodology The study used quantitative methodology by using a questionnaire as a
survey method. Other than the questionnaire dealing with numbers of people, there are
other advantages in using the questionnaire method. First, it is easy to operate. Second,
data collection is reliable since answers are given to each question. Finally, it
simplifies data analysis (Thananuraksakul, 2007).
The questionnaire was separated into two parts; the objective of each part
was as following:
The purpose of Part 1 was to screen respondents and to collect personal
data; the questions included age, income per month and online shopping experience.
The intention of Part 2 was to ask about things that encouraged or acted
against their online shopping. Because of limitations in study time, the questionnaire
had to be short for ease of analysis and to fit within the timeframe of the study.
Therefore, only ten statements assessed the variables of the conceptual model (Figure
7). This part used a six-point Likert scale from 1 “Strongly Disagree” to 6 “Strongly
Agree”. This part was adapted from similar topic researchers.
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3.3 Data Sampling and Measurement The questionnaire collected primary data. The target group of respondents
were middle aged and used the internet. Data was acquired by online questionnaire
because it was easy to input data for analysis and to match with target respondents.
Regarding time constraints, we could not collect much data. The study
received 60 survey responses. Two were invalid, and so 58 were used.
The paper used SPSS statistics 21.0 package to analyze data. The study
used Factor analysis in order to group variables into factors and remove the variable
that was not important, and used Regression analysis in order to test hypotheses.
3.4 Preliminary Findings
Based on factor analysis that grouped variables into factors, there were no
variables deducted. The result got four factors with eigenvalue ~1.0 and cumulative
Eigen values amounted to 73.2%.
The output of four factors (Table 3.1) was perceived risk, which covered
three aspects: 1) Product risk, studied by Javadi et al. (2012); 2) financial risk, studied
by several researchers; and 3) delivery risk, studied by Zhang et al. (2012).
Perceived benefits covered 1) convenience, studied by various researchers;
and 2) price, studied by (Thananuraksakul, 2007).
Service covered 1) after sales services; studied by Ming-Shen et al. (2007)
& Zhang et al. (2012); and 2) channel provider (Website via computer/ Application via
smart phone).
Lastly, perceived behavior control covered websites to appear easy to use.
In next chapter, these four factors are used for testing hypotheses.
17
Table 3.1 Output from Factors Analysis
Factors Statement Number in
questionnaire
Loading
factors
Perceived Risk
4 (Product risk) 0.855
5 (Delivery risk) 0.791
6 (Financial risk) 0.752
Perceived Benefit
1 (Special offering) 0.637
2 (Convenience) 0.846
3 (Price compare ) 0.822
Service 7 (After sale) 0.877
8 (Channel provider) 0.649
Perceived Behavior Control 9 0.966
18
CHAPTER IV
RESEARCH FINDINGS
4.1 Respondents’ Age
According to Figure 4.1, most respondents were aged from 25 – 30 years
old, 49 respondents, or 84.5%. The remaining nine respondents were 31 – 35 years old
and 36 – 40 years old, calculated to 13.8% and 1.7% respectively.
Figure 4.1 Ages of Respondents
4.2 Respondents’ Income According to Figure 4.2, the largest monthly income was 30,001 - 40,000
baht, for 24 respondents, or 41.1%, the next group was 20,000 – 30,000 baht for 17
respondents, or 29.3%. Two groups of 7 respondents, or 12.1%, had monthly incomes
of 40,001 – 50,000 baht and 50,001 – 60,000 baht, with the remaining three earning
below 20,000 baht per month.
19
Figure 4.2 Monthly Incomes of Respondents
4.3 Online Shopping Experience 53 respondents, or 91.4%, had experienced online shopping; and only
8.6%, or 5 respondents, had never purchased anything online.
Table 4.1 Online Shopping Experience
Have you ever purchase anything online.
Frequency Percent
Valid
Yes 53 91.4
No 5 8.6
Total 58 100.0
4.4 Hypotheses Test The hypotheses test used multiple regression. The significance level of this
study was set at 0.05: Hypotheses were rejected at significance values of more than
0.05.
H1: Perceived benefit positively affects online buying intentions.
As shown in Table 4.2, the regression analyzed the relationship between
perceived benefit and online shopping intention as being significant (sig. <0.05). The
20
adjusted R² indicated that perceived benefit explained 19.3% (.193) of the variance in
online shopping intention. The result of Beta Coefficients and t value found positive
relationship between perceived benefit and online shopping intention. Therefore, H1
was supported.
Table 4.2 Regression Analysis for Perceived Benefit
Model R Square
Adjusted R Square
Unstandardized Coefficients
Standardized Coefficients t Sig.
B Std. Error Beta
Perceived
benefit 0.193 0.178 0.607 0.166 0.439 3.658
0.00
1
a. Dependent Variable: Online shopping intention
H2: Perceived risk negatively affects online buying intentions.
As shown in Table 4.3, the regression analysis of the relationship between
perceived risk and online shopping intention was not significant (sig.> 0.05).
Therefore, H2 was rejected.
Table 4.3 Regression Analysis for Perceived Risk
Model R Square
Adjusted R Square
Unstandardized Coefficients
Standardized Coefficients t Sig.
B Std. Error Beta
Perceived
risk 0.008 -0.01 -0.12 0.184 -0.087 -0.652 0.517
a. Dependent Variable: Online shopping intention
H3: Service significantly affects online buying intentions.
As shown in Table 4.4, the regression analysis of the relationship between
service and online shopping intention was not significant (sig.> 0.05). Therefore, H3
was rejected.
21
Table 4.4 Regression Analysis for Service
Model R Square
Adjusted R Square
Unstandardized Coefficients
Standardized Coefficients t Sig.
B Std. Error Beta
Service 0.003 -0.015 0.076 0.184 0.055 0.412 0.682
a. Dependent Variable: Online shopping intention
H4: Perceived behavioral control significantly affects online buying
intentions.
As shown in Table 4.5, the regression analysis of the relationship between
perceived behavioral control and online shopping intention was not significant (sig.>
0.05). Therefore, H4 was rejected.
Table 4.5 Regression Analysis for Perceived Behavioral Control
Model R Square
Adjusted R Square
Unstandardized Coefficients
Standardized Coefficients t Sig.
B Std. Error Beta
Perceived
behavioral
control
0.056 0.039 0.327 0.179 0.236 1.821 0.074
a. Dependent Variable: Online shopping intention
This paper aimed to study the factors that affect consumer online buying
intentions. Several researchers had studied this as well, and they found that perceived
benefit and perceived risk were important factors (Hsu& Bayarsaikhan,2012; Jusoh &
Ling, 2012), while service and perceived behavioral control were not significant
factors affecting online shopping intentions (Zhang et al., 2012;
Thananuraksakul,2007; Javadi et al., 2012).
22
From this study, only one of four hypotheses was supported (sig < 0.05)
which is perceived benefit. It shows that consumers perceived convenience, special
offers and price comparison as being important factors to influence online purchasing
intentions.
23
CHAPTER V
DISCUSSION
The purpose of this study is to understand the factors influencing online
shopping intentions toward personal care products. The factors that are focused on can
be controlled by a manager. The factors studied are perceived benefit, perceived risk,
service and perceived behavioral control. The result shows that only perceived benefit
is an important determining factor influencing online buying intentions.
The study shows hypothesis 1 was supported. It shows that perceived
benefit positively affects online shopping intentions towards personal care.
Consumers’ perception is that online shopping is convenient, easy to use and they are
happy to get special offerings or prices online. They are motivation factors in order to
purchase personal care products online. Nowadays, people’s life styles have changed
and time is very important for them, so convenience is preferred (Bui, 2013).
This finding was in accordance with the study of Hsu et al (2012), in
Mongolia, and Prompongsatorn et al (2013), in Thailand. However, the result was
opposite to Thananuraksakul (2007), where she found that Thai people perceived
online shopping as not being convenient.
Hypothesis 2 was not supported. It shows that perceived risk does not
negatively affect online shopping intention. This finding was different from several
researchers –Thananuraksakul (2007), Hsu et al (2012), Javadi et al. (2012), Zhang et
al. (2012), and Jusoh et al (2012). They found perceived risk to be significant factors
toward online shopping behavior.
Based on statistics from the Bank of Thailand, consumers who used
internet banking increased dramatically, almost 40%, from 2011 to 2013. It shows that
Thai people have come to trust the transaction system through internet. Since online
shops use internet banking as a medium of transaction, financial transaction would not
be the barrier to online shopping. Because the study identified the product as a low
involvement product, the risk may not have been a concern and most respondents were
24
experienced in online shopping, so this may have resulted in perceived risk being
different from other researchers.
Hypothesis 3 was not supported. Services do not affect online shopping
intention. Because Thai consumers do not often return or change products, after
service is not important for them. This finding was in accordance with Zhang et al.
(2012). For additional channel providers, the finding found that consumers were not
concerned about channels and they did not care if the service were provided by
website or application on a smartphone.
Hypothesis 4 was not supported. It shows that perceived behavioral control
does not affect online shopping intentions. Previous research studied the lack of
facilities in order to shop online as a perceived behavioral control, and as result,
according to Thananuraksakul (2007) and Javadi et al. (2012), perceived behavioral
control was not a factor that affected online purchasing intentions. However, this paper
studied a variable that may have provided the consumer an ease in online purchasing
such as website design, and it was found to not be an important factor as well.
5.1 Conclusions This paper shows how the theory of planned behavior was applicable to
determine consumer behavior intention. Only behavioral control was used to study
consumers’ online shopping intentions toward personal care products, and as a result,
the web page design did not encourage them to shop online.
In addition, the study added perception and service into a theoretical
framework to test factors found in literature. The findings were consistent with the
other literature. Therefore, the theoretical framework used in this paper was
appropriate.
Quantitative methodology and the SPSS statistical software tool were used
for data collection, and data analysis was reliable. However, because of time
constraints, the questionnaire reliability test ignored some of the factors that may have
caused poor reliability and error in findings.
25
5.2 Recommendations The following are recommendations for further study.
• The study should focus on more details of the variables influencing
online shopping behavior in order to benefit the manager.
• Because of time limitations, the questionnaire did not test reliability
before being submitted to respondents. Therefore, to make the findings more reliable,
the questionnaire should be tested.
• Regarding the study of Thai behavior, the sample size of respondents
should be higher and more widely distributed in order to reduce error.
According to this study, perceived benefit significantly affects online
shopping intention toward personal care. To utilize this finding, below are
recommendations for online sellers.
• Online stores should have a variety of products, not only types of
personal care products but also a variety of brands for each type of products in order to
provide more convenience for consumers.
• Price comparison features are important for websites. Regarding
personal care products, there are few differences between brands, so consumer
decisions will depend on the value of the products.
• Special offers are important but it may reduce profit margins if there
are special events all the time. Therefore, the recommendation is to provide special
offers only occasionally in order to encourage consumers to purchase online.
26
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30
APPENDIX A: Questionnaire Studied in Consumer Behavior of Personal Care Products toward online
shopping
This questionnaire is the part of research in order to study attitude and
behavior of consumer toward online shopping on personal care products. This study
belongs to Master degree student of College of Management, Mahidol University. The
information will be used for the academic propose and it will be kept in confidentially.
Your kindly cooperation would be much appreciated. This may take 5 minutes of your
time.
Personal care products for this study used for keeping body clean and
helping to prevent the germ for example toothpaste, shampoo, deodorant, body and
face wash, etc.,
Section I:
1. How old are you?
1. Below 25 years old 2. 25 - 30 years old
3. 31 - 35 years old 4. 36 - 40 years old
5. 41 - 45 years old 6. Above 46 years old
2. Please specific your range of personal income per month?
1. Below 20,000 Baht 2. 20,000 - 30,000 Baht
3. 30,001 - 40,000 Baht 4. 40,001 - 50,000 Baht
5. 50,001 – 60,000 Baht 6. Above 60,001
3. Have you ever purchase anything online?
1. Yes 2. No
31
Section II
Please rate the following statement below from 1 to 6 for each question.
These statements relates to the time when you have a chance to go on the Internet for
shopping for “personal care products”. The word "shopping online" or "online
shopping" is defined as the following: browsing the goods offered by the Internet
merchant and making a conscious purchasing decision.
Please indicate the degree to which you agree or disagree with each of the
following statements. 1 means "Strongly Disagree" and 6 being "Strongly Agree"
No Statement 1 2 3 4 5 6
1 I do purchase personal care online because there are special
offering for me
2 I do shop personal care online because it is easy for me to
buy
3 I do buy personal care online because it is easy to compare
price.
4 I do not purchase personal care online because I do not trust
in internet transaction system.
5 I do not purchase personal care online because products will
be damaged.
6 I do not buy personal care online because I do not want to
wait products.
7 After sale service is important for me when I buy personal
care online.
8
I do not purchase personal care online because I have to
order from computer only (Cannot use from SMART
PHONE via application)
9 I do shop personal care online if website looks nice because
it is easy for me to use.
10 I think I will buy personal care online in the near future
32
BIOGRAPHY
NAME Miss Sapannarat Chaichana
DATE OF BIRTH 31/12/1984
PLACE OF BIRTH Bangkok, Thailand
INSTITUTIONS ATTENDED Bachelor of Electrical Engineering,
Thammasat University, 2007
Master of Management, Mahidol
University, 2014
RESEARCH GRANTS -
HOME ADDRESS 11/1, Village Number 7, Bangkratuk Sub-
District, Sampran District, Nakhon Pathom,
Thailand , 73210
Tel. 080-6095790
E-mail: engsa_chtu14@hotmail.com
EMPLOYMENT ADDRESS -
PUBLICATION / PRESENTATION -