Biljana Lukic_Consumer behaviour towards online shopping of electronics in Bosnia and Herzegovina

Consumer behaviour towards Consumer behaviour towards

online shopping of electronics in online shopping of electronics in

Bosnia and HerzegovinaBosnia and Herzegovina

Master thesisMaster thesis

Biljana LukiBiljana Lukićć

Sarajevo, June 2014

Introduction Introduction Consumer behaviourConsumer behaviour

Online decision making processOnline decision making process

Factors influencing consumers’ behavior toward Factors influencing consumers’ behavior toward

online shoppingonline shopping

Hypothesis developmentHypothesis development

MethodologyMethodology

ResultsResults

ConclusionConclusionBiljana Lukić, Master Thesis, Sarajevo, June 2014

Consumer behaviourConsumer behaviour

“ “Consumer behaviour is the study of individuals, Consumer behaviour is the study of individuals,

groups, or organizations and the processes they groups, or organizations and the processes they

use to select, secure, and dispose of products, use to select, secure, and dispose of products,

services, experiences, or ideas to satisfy needs services, experiences, or ideas to satisfy needs

and the impacts that these processes have on the and the impacts that these processes have on the

consumer and society. “ consumer and society. “

(Kuester, 2012) (Kuester, 2012)

Biljana Lukić, Master Thesis, Sarajevo, June 2014

To explore factors affecting consumer To explore factors affecting consumer decision whether to buy electronic decision whether to buy electronic goods online or not. goods online or not.

The aim of the researchThe aim of the research

Online decision making processOnline decision making process


NEED RECOGNITIONNEED RECOGNITION

INFORMATION COLLECTINGINFORMATION COLLECTING

EVALUATING ALTERNATIVESEVALUATING ALTERNATIVES

MAKING A PURCHASEMAKING A PURCHASE

Factors influencing online shoppingFactors influencing online shopping


Hypothesis developmentHypothesis development

The null hypothesis:The null hypothesis:

There is a relationship between factors affecting There is a relationship between factors affecting

consumer behaviour and online shopping.consumer behaviour and online shopping.


Hypothesis developmentHypothesis developmentH1: Individual demands has positive influence on online consumer

purchase decision and behaviour.

H2: Consumers attitude has influence on online consumer purchase

decision and behaviour.

H3: Reasonable price strategy has positive influence on online

consumer purchase decision and behaviour

H4: Product quality has positive influence on online consumer purchase


H5: Web trust has positive influence on online consumer purchase


H6: Online consumer purchase decision and behaviour has positive

influence on repeated purchase behaviour.


MethodologyMethodologySurvey was conducted through questionnaire that: Was sent out by e-mail to friends and followers

Was consisted from 41 demographic (age, gender, education,

registration and activity) and perception questions (focused on

users’ behavior)

Sample Respondents were Internet users who knew how to make an

online purchase, possibly had made one or were willing to make

one in the future

Respondents were not limited with age constraint

Respondents live in Bosnia and Herzegovina


MethodologyMethodology

Measurement

1-5 Likert scale

Frequency of online buying was measured through

categories:

Trial (once yearly)

Occasional (2-4 times yearly)

Frequent (5-10 time yearly)

Regular (More than 10 times yearly)



2.189.9402.189.940

Internet users in Bosnia and HerzegovinaInternet users in Bosnia and Herzegovina

57%57%

Internet penetrationInternet penetration


Demographics

Gender:Gender:

Age:Age:

Male 54.22%

Female 45.78%

18-29 31.33%

30-49 68.67%

50 and over 0%

ResultsResults

ResultsResults


Demographics

Monthly income:Monthly income:

Less than 700BAM 14.63%

700-1000BAM 21.95 %

1001-1500BAM 35.37 %

1500-3000BAM 17.07 %

More than 3000BAM 10.98 %

ResultsResults


Demographics

Education:

High school 27.71%

College 26.51%

Bachelor 28.92%

Postgraduate or more 16.87%

ResultsResults


ResultsResults


The main influencing factors have been identified as

PricePrice

TrustTrust

ConvenienceConvenience

ResultsResults


PricePrice

ResultsResults


TrustTrust

ResultsResults


ConvenienceConvenience

ConclusionConclusion


Hypothesis Outcome

H0: There is a relationship between factors affecting consumer behaviour and online shopping.

Supported

H1: Individual demands has positive influence on online consumer purchase decision and behaviour.

Supported

H2: Consumers attitude has influence on online consumer purchase decision and behaviour.

Supported

H3: Reasonable price strategy has positive influence on online consumer purchase decision and behaviour.

Supported

H4: Product quality has positive influence on online consumer purchase decision and behaviour.

Supported

H5: Web trust has positive influence on online consumer purchase decision and behaviour.

Supported

H6: Online consumer purchase decision and behaviour has positive influence on repeat purchase bahaviour.

Supported



Online buyers in Bosnia and Herzegovina:

Are very price sensitive and convenience oriented.

Are very cautious with risks associated with the purchase, especially with financial risks.

Use Internet mostly for searching information and work.

Usually spend maximum 50BAM per month for online buying.



Online buyers of different sex and age have very similar purchasing behavior.

Online buyers find sales channels mostly through recommendation from their friends and families.

The main reasons for buying online are best prices and availability of goods that are not available in local market.

The main barriers for online buying are safety of payment and high shipping costs.

Thank you Thank you

Biljana Lukic_Consumer behaviour towards online shopping of electronics in Bosnia and Herzegovina

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