A Study of Consumers’ Trust in Online Shopping between Pick-up Goods Behavior in the Convenience Stores

Chun-Chia Wang Department of Information Management

Technology and Science Institute of Northern Taiwan Beitou, Taipei, Taiwan

toshihitowang@gmail.com

Chang-Cheng Sie Institute of Electronic Commerce

Technology and Science Institute of Northern Taiwan Beitou, Taipei, Taiwan

my_0606@hotmail.com

Abstract—With the adoption of Internet, online shopping has provided a convenience way to purchase goods or services from anywhere at any time in recent years globally. Especially, convenience stores are available for consumers to pick up goods ordered from Internet shops in Taiwan. Therefore, convenience stores have become an important success factor for increasing a lot of profit in online shopping in Taiwan.

Past researches have indicated that consumers dare not or are not willing to purchase goods in online shopping. The reasons include the problem of security and the lack of consumers’ trust. Thus, these problems constitute a key barrier to the use of online shopping as well as long-term commitment to the relationship building. Therefore, there is a need to build up consumers’ trust in order to overcome the influential factor in online shopping. In this paper, we use statistic analysis method by questionnaires to discuss the characteristics of pick-up goods in the convenience stores and illustrate the relationship among consumers’ trust in online shopping and pick-up goods behavior in convenience stores. In our experiment, questionnaire items are measured by Likert scale. In 227 valid questionnaires, 90% participants deeply believe that pick-up goods in the convenience stores can promote consumers’ trust in online shopping.

Keywords Consumers’ Trust, Online Shopping, Convenience Stores, Likert Scale

I. INTRODUCTION The number of Internet users has increased exponentially in Taiwan. According to the statistical date from FIND (Foreseeing Innovative New Digiservices) [9], there were 10.79 million internet users in Taiwan, which comprised 47% of the Taiwan population. From the survey of Taiwan Information Center, among internet users 52.7% were using internet for searching information (1st), 31.39% were checking weather forecast and 28.9% (2nd), subscribing information (3rd) and 19.6% were making online shopping (6th). According to MIC (Market Intelligence & Consulting Institute) [11], the trading of online shopping this year (2011) in Taiwan has reached to 430 billion NT dollars, which is 20.01% growth than last year. The main reasons why online shopping increased are as following: the traditional enterprises reach their market to e-commerce, e-commerce expanded into multi-purposes, cross-national online shopping, the extreme of internet marketplace. The trading of online shopping had exceeded 350 billion NT dollars before 2010. Though the market of Internet shopping in Taiwan has increased, there are lots of

consumers dare not or are not willing to do online shopping. According to MIC and InsightXplorer, as their surveys of Taiwan Internet shopping market, the reasons why consumers like or don’t like online shopping are as follows. Reasons why consumers like online shopping include: Cheap, Convenient, On sale and gift, and Shopping with no burden. On the contrary, reasons why people don’t like online shopping include: Afraid of Internet fraud and the security of internet trading, Difficulty in assessment of product, Difficulty of returning and exchanging products, and Lack of faith between online stores and consumers has prevented people from shopping. There are many previous researches about online shopping. However, online shopping is much complicated than the traditional type of trading. Online shopping requires: Internet, electronic payment system, the service of distribution, etc. Therefore, the security of electronic trading should take into consideration. There is no ‘best’ or ‘safest’ way of electronic payment system [5]. Though, online shopping is convenient. However, consumers concern more about its electronic payment system and retailing delivery system. In the past, there are two ways to get your online orders: one is post delivery and the other is home delivery. In Taiwan, convenience stores have integrated the e-commerce with the logistics system of convenience stores to a new retail delivery model: “Online shopping in an electronic store and pick-up goods in the convenience store” By “Online shopping in an electronic store and pick-up goods in the convenience store” system, consumers feel more comfortable about unsecured of online shopping. The purposes of this paper are as follows. 1. To discuss the trust degree of online shopping in the

system of ‘online shopping in an electronic store and pick-up goods in a convenience store’.

2. Main reasons of the promotion of trust degree in online shopping by ‘pick-up goods in a convenience store’.

3. Is there any influence about trust degree in basic information, Internet experience and online shopping experience?

II. RELATED WORK A. The Characteristics of Online Shopping Online shopping behavior means buying products over the Internet. Therefore, the characteristics of online

2012 26th International Conference on Advanced Information Networking and Applications Workshops

978-0-7695-4652-0/12 $26.00 © 2012 IEEE

DOI 10.1109/WAINA.2012.7

381

shopping are different from real product purconsidered the market of online shoppicheaper products and lower information consumers are more efficient to reach selletheir needs. There are three advantages of as follows.

1. Consumers can pay less to get products2. Consumers can have correct product

make better purchase decision. 3. The cost of searching information i

wasting time to search. B. The Model of Pick-Up Products in th

Stores Convenience stores started their servproducts for online shopping in 1999. commerce encouraged the birth of third pUnder the contribution of Internet retaildistribution and pick-up goods in the conbecome the most important model of distribe-commerce. Wu [1] classified consumers pick up proshopping into two parts: one is passive recis active receiving. Passive receiving includexpress delivery, hand delivery, cargo deldelivery, etc. By speed and cost, there adelivery. One is common post delivery, thdelivery. The characteristics of deliveryproducts are shown in Table 1. Commoincludes post delivery and cargo delicharacteristics of common post delivery areHand delivery includes express delivery anwhich are more expensive and fast than posare two ways of active receiving: one is picpoints; the other is pick-up in conveniedifferences are convenience stores are opened 24 hours but the advantages of dethe precise and complete of products.

TABLE 1: The Comparison of Dis

Delivery and returning goods are dconvenience stores. Joining the logismodeling carried out in store delivery of convariable cost can be cut down to th

rchase. Bakos [3] ing can provide cost. Therefore,

ers who can meet f online shopping

s. information and

s lower without

he Convenience

vice of pick-up The rise of e-

arty distribution. lers, third party nvenience stores bution in Taiwan

oducts for online ceiving; the other ded post delivery, livery and home are two ways of he other is hand y and receiving on post delivery ivery, etc. The e cheap but slow. nd home delivery st delivery. There ck-up in delivery ence stores. The everywhere and

elivery points are

stribution [1]

daily works for stics operations nvenience stores, he lowest. The

characteristics of daily delivery, system of goods make the logisticarried out in store delivery of conchoice for online shopping [2]. C. The Trust Model of Online Sh Trust is based on psychology. Mdifferent definition of trust, but fewof online shopping. In the past, mdiscuss why e-commerce cannot repreason is online retailers face a situtrust might be expected to be inhereKraeuter [6] considered trust is nobut long-term barriers for online sare lots of risks on the process omain risks of online shopping cancatalogues: one is product risk; thProduct risk means consumers cannInternet. Security risk means copersonal data would reveal though[4]. The main reason why consushopping is short of trust. Lee and Turban [7] identified CoShopping (CTIS) as “On the procconsumers’ willingness to buy onlinif not consumers have ability to mretailers, they predicted retailers woInternet exchange,” thus they promodel in online shopping as shown

Figure 1: Consumers Trust i

According to related work, trustconsumers are not willing to go opick up goods in convenience stconvenient than online shopping. Tthere is any influence for consshopping to pick up goods in conven

III. RESEARCH MODEL A

To realize the influence for onlinup goods in convenience storeparticipants focus on online shoppquestionnaire and related work, thithe characteristics of pick-up good

Trust of Internet retailers Ability

Honesty

Individual’s tru

Trust toward media of online shopping Technology

Credibility

Situation factors Third party certification

Effect of safety basic t t

Other factors

on time and tracking ics operations modeling nvenience stores the best

hopping any researchers provided

w of them mentioned trust many researchers tried to place retailers. One of the uation in which consumer ently low [6,8]. Grabner-ot a short-term problem, shopping. Because there f Internet transition, the n be classified into two he other is security risk. not evaluate products via

onsumers worried about h open internet transition umers didn’t go online

onsumer Trust in Internet cess of online shopping, ne is low. No matter if or monitor or track Internet ould enact the behavior of ovided consumers’ trust in Figure 1.

in Online Shopping [7] t is the main reason why nline shopping. Also, to tores is much safe and

This paper is to discuss if sumers’ trust in online nience stores.

AND HYPOTHESES ne shoppers’ trust to pick es, the major research ing consumers. Through is paper tries to find out ds in convenience stores.

ust

Consumers’ trust in online shopping

382

Questions include four factors: demographic factor, experience of internet usage, experience of online shopping and trust of pick-up goods in convenience stores. The trust model of this paper is shown in Figure 2. According to the model, there are three hypotheses and give an explanation on H3 and H4.

Figure 2: The Three Influence Factors of Consumers’ Trust of Pick-Up Goods in Convenience Stores

A. Design of Questionnaire The questionnaire is processing based on related work and all related questions. The content of questionnaire includes four parts: subjects’ personal data, experience of Internet usage-to investigate subjects’ behavior of Internet usage and habits, experience of online shopping-to realize subjects’ experience of Internet usage, the ways of payment and pick-up goods, and finally the influence of trust of online shoppers toward pick-up goods in convenience stores. We adopt Likert scale to measure the variances of service characteristics of pick-up goods in convenience stores. Fifteen items used a five point response format, from 1 = strongly disagree to 5 = strongly agree. B. Test To assure the subjects can fully understand the content of questionnaire and to avoid questions were not answered properly, before delivering the questionnaire we asked scholars to assure the accuracy of the questionnaire. Besides, we collected 20 tests on Internet. Learning from test participants provided their opinions, we adjusted the content of questionnaire after discussion with scholars C. Credibility of Analyzing the Questionnaires Analysis of credibility is to measure the accuracy of questionnaire. The measuring results showed the credibility, consistence and stability of the questionnaire. In Likert scale, when Cronbach’s � is higher than 0.7, it represents higher credibility and the questionnaire is more reliable. By using Cronbach’s � to measure the credibility of questionnaire, it showed the average of Cronbach’s � was higher than 0.8 which meant the questionnaire is higher reliable and consistent. D. Hypotheses According to variables of research structure, we created the following hypotheses. Previous researches took characteristics of people as one of the variables of influence, thus the hypotheses of the research are as follows: H1: Different cohort of consumers makes a great impact on how the pick-up services in convenience store affects consumers' trust in online shopping.

H1-1: Different sex of consumers makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping. H1-2: Different age of consumers makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping. H1-3: Different status of marriage of consumers makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping. H1-4: Different education of consumers makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping. H1-5: Different resident areas of consumers makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping. H1-6: Different occupation of consumers makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping. H1-7: Different monthly income of consumers makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping. H1-8: Whether the consumers have credit card makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping.

H2: Customer’s trust model in online shopping based on pick-up in the convenience stores differs very much among Internet users with different browsing experience.

H2-1: Customer’s Trust Model of Online Shopping Based on Pick-up at Convenience Store differs very much with different Internet browsing experience. H2-2: Customer’s Trust Model of Online Shopping Based on Pick-up at Convenience Store differs very much among internet users with different online frequency. H2-3: Customer’s Trust Model of Online Shopping Based on Pick-up at Convenience Store differs very much among internet users with different browsing time. H2-4: Customer’s Trust Model of Online Shopping Based on Pick-up at Convenience Store differs very much among internet users with most often online places.

Because the research is to discuss consumers’ trust model in online shopping, so Internet users' browsing experience makes a impact on trust model in online shoppers. The hypotheses are as follows: H3: Consumers with different Internet shopping experience make an impact on trust model in online shopping.

H3-1: Whether the consumers have the experience of picking up goods in convenience store makes a great impact on trust model in online shopping.

Demographic Factor

Experience of Internet Usage

Experience of Online Shopping

Trust of Pick-Up Goods in

Convenience Stores

383

H3-2: Whether the consumers have thpicking up goods in convenience store makes a great impact on trust mshopping. H3-3: How much do the consumers picking up goods in convenience storimpact on trust of model in online shopH3-4: Whether the consumers have thpicking up goods in convenience storeimpact on how the pick-up servicesstore affects consumers’ trust in onlineH3-5 Most frequent paying way of pin convenience store makes a great impick-up service in convenience consumers’ trust in online shopping. H3-6: Main receiving way of pickinconvenience store makes a great imppick-up service in convenience consumers’ trust in online shopping.

IV. DATA ANALYSIS

A. Data Collection From Feb. to March in 2011, the paper stquestionnaire through Internet and paper forpieces back and three of them were invali227 valid questionnaires. Most of the participants aged from 2educated to colleges (46.7%), lived in the Taiwan (81.94%), frequent online place(72.25%), had online shopping experiencpick up goods in convenience store experpaid in convenience store for delivery (4credit online came to the second (27.42%)method was in convenience store (47.31%came to the second (39.25%). B. Influence of Consumers’ Trust in O

Based on Pick-Up Goods in theStores

In 227 valid questionnaires, most participicking-up goods in convenience store consumers’ trust model in online shoppinpoints fall on over 4 but not up to 5 (68.over 3 but not up to 4 (30.84%). It is shown

Figure 3: Average Points of Consumers’ TShopping Based on Pick-Up Goods in the

Stores According to Figure 3, about 90% pa

0.88%30.84%

68.28%

Likert Scale: 1-5

Under 3 pAmong 3Among 4

he experience of in past 6 months

model in online

cost monthly of re makes a great pping. he experience of es makes a great in convenience

e shopping. picking up goods

mpact on how the store affects

ng up goods in pact on how the

store affects

tarted by delivery rms. We had 230 id, so there were

21-29 (42.29%), northern part of

e was at home e (81.94%), had rience (63.44%), 6.77%), paid by ), main receiving

%), home delivery

Online Shopping e Convenience

ipants considered could promote

ng. The average 28%) and points

n in Figure 3.

Trust in Online e Convenience

articipants whose

points over three sensed pick-upstores promote consumer’s trust iparticipants whose points fall on pick-up goods in convenience consumers’ trust model in onlinaverage points was 4.26 points. influence (pick-up goods in convconsumers’ trust in online shopping

TABLE 2: Consumers’ TruBased on Pick-Up Goods in C

Reasons why consumer choose to picconvenience store 24-hour receiving service There are seven days for consumers to pitheir order arrived in convenience store Delivery cost is low Easy to reach convenience store Convenience store is near Text message to notice the arriving of goodsEmail to notice the arriving of goods Assistance from employees in convenience sTrack the information of goods via internet oReturn policy in convenience store Avoid face-face trading problems Assure personal privacy without filling phonPick up personal orders in convenience storePay by cash avoid the insecure of using credDecrease the risks of using credit card and AAverage C. Analysis of Research The paper listed 15 questionsconvenience store. Through anaadjusted factors. There are threeservice, convenience and safety. Aconvenience is the highest (4.38 posecond (4.27 points); service compoints). The average points are overfactors make an impact on consumeshopping. It is shown in Table 3.

TABLE 3: Factors Made an Trust Model in Online

D. Analysis of Variance Furthermore, after analyzing factof variance through demograpexperience and online shopping expvariance, status of marriage and

5 points

points-4 points-5points

p goods in convenience in online shopping. The over 4 (68.28%) sensed

store could promote ne shopping. Thus, the

The figure show deep venience store promote

g). It is shown in Table 2. ust in Online Shopping Convenience Stores

ck up goods in Average point 4.52

ck up goods after 4.30

3.91 4.51 4.47

4.42 4.07

store at anytime 4.04 or phone 4.30

4.18 4.04

ne and address 4.30 e to protect privacy 4.17 it card online 4.25

ATM 4.37 4.26

s of pick-up goods in alysis of research, we e factors in this paper: Among the three factors, ints); safety comes to the mes to the third (4.09 r 4 points. It shows those ers’ trust model in online

Impact on Consumers’ e Shopping

tors, we process analysis hy, Internet browsing perience. In demography monthly income didn’t

384

reach 5%, so don’t take into consideration. Oeducation made impact on service and safwho had college degrees consider serviceconsumers’ trust in online shopping. It is sh

TABLE 4: Analysis of Demography VUp Goods in Convenience Sto

In analysis of variance, pick-up goodsstore don’t make any impact on service, safety in Internet browsing experience. experience of Internet browsing is high ormake any impact on consumers’ trust momight be trust putted in a very early processin personality [8]. The analysis of variance of pick-up gshopping experience in convenience storesin convenience store and the way of receivan impact on convenience. Those who hapick-up goods in convenience stores (4.47 convenience had higher impact on consumof online shopping than those who didn’t (4.17 points). The ways of receiving: con(4.49 points) and home delivery (4.39 poithan others (3.61 points). However, others5% so not taking into consideration. It is sho

TABLE 5: t/F Values of Analysis of Experience of Pick-Up Goods in Conven

Whether consumers had experience of pconvenience stores made an impact on cThe reason might be consumers who hapick-up goods in convenience stores realizeof the service and promote trust. The education degrees show an impacttrust. The reason might be consumers education degrees are easy to trust others. who had higher education are hard to trust oE. Check of Hypotheses Hypotheses of the research were consumin online shopping toward pick-up goodsstores. After checking these three hypotheseshown in Table 6, 7, 8, 9, respectively.

TABLE 6: Factors of Demography Made

Online Shopping

Only participants’ fety. Participants e is important to hown in Table 4. Variance of Pick- ore

s in convenience convenience and No matter the

r low, it doesn’t odel. The reason s of development

goods of online s, pick-up goods ving would make ad experience to points) consider

mer’s trust model have experience

nvenience stores ints) were higher s was lower than own in Table 5. f Variance: The nience Stores

pick up goods in consumers’ trust. ad experience of e the convenience

t on consumers’ who had lower Otherwise, those

others.

mer’s trust model s in convenience es, the results are

e an Impact on

TABLE 7: Hypotheses ofExperience on Consumers’ Trust M

TABLE 8: Hypotheses oExperience on Consumers’ Trust M

TABLE 9: The Overall Results

In H1: Different cohort of coimpact on how the pick-up servicaffects consumers’ trust in online s

f Internet Browsing Model in Online Shopping

f Internet Shopping

Model in Online Shopping

of Three Hypotheses.

nsumers makes a great ces in convenience store shopping. The factors are

385

sex, age, status of marriage, degree of education, resident areas, occupation, monthly income and credit cards. In all the factors, only degree of education s makes a great impact on how the pick-up service in convenience store affects consumers’ trust in online shopping. People who graduated from college consider service promoting consumers’ trust in online shopping. However, people who graduated from high school consider security promoting consumers’ trust in online shopping. Thus, H1 is partly ‘Yes’. In H2, Customer’s trust model in online shopping based on pick-up in the convenience stores differs very much among Internet users with different browsing experience. The factors are : different Internet browsing experience, different online frequency and most often online places. All the factors didn’t have an impact. Thus, H2 was ‘No’. In H3, Consumers with different Internet shopping experience make an impact on consumers’ trust model in online shopping. The experience are: picking up goods in convenience store, picking up goods in convenience store in past 6 months, average cost of online shopping, pick-up service in convenience store and receiving way. All the factors, only whether the consumer had experience pick-up goods in convenience store made a great impact. Thus, H3 was partly ‘Yes’.

V. CONCLUSION The main contribution of this paper is to investigate consumers’ trust in online shopping based on pick-up goods in the convenience stores in Taiwan. Firstly, two of the three hypotheses support the relationship between pick-up goods behavior in the convenience stores and consumers’ trust. Secondly, in the results of statistic analysis receiving from 227 valid questionnaires, this paper shows that pick-up goods in the convenience stores is one of important factors that contribute to consumers’ trust. Finally, this paper makes a valuable contribution not only to the information online shop managers needed but also the overall body of consumers’ trust and diffusion research. The influence factors of pick-up goods in the convenience stores to consumers’ trust concluded as follows: 1. Pick-up goods in convenience stores can promote

consumers’ trust in online shopping. By review and analysis of data, the average point of trust is over 3 (87.23%). It shows that 90% of the participants considered pick-up goods in convenience stores could promote consumers’ trust model in online shopping.

2. The characteristics of pick-up goods in convenience stores. By analysis of factors, we conclude three characteristics of pick-up goods in convenience stores: service, convenience, and safety. Convenience is the highest with 4.38 points; safety comes to the second with 4.27 points, finally service has 4.09 points. It showed convenience is the most important factor.

3. There are three major advantages of pick-up goods in convenience stores. 24-hour service is the best (4.52

points), free to choose receiving time can promote consumers’ trust model in online shopping; easy to reach convenience stores (4.51 points) and convenience store is near (4.447 points) show easy of receiving can promote consumers’ trust model in online shopping; delivery cost is low (3.91 points) makes a small part of impact.

4. Degrees of education make an impact on consumers’ trust model in online shopping.

5. Whether the consumer had experience of pick-up goods in convenience store make an impact on consumers’ trust model in online shopping. The one who had experience of pick-up goods in convenience store considered convenience is the key point of higher trust in online shopping.

REFERENCES

[1]. Chao-Le Wu, “The Study of Consumers' Preference in Receiving Physical Goods on Internet shopping,” Master Thesis, Tunghai University, Taichung, 2001.

[2]. Feng, C.M. and Huang Y.K., “The Effects of Switching Costs and Service Quality on Choice Behavior of the Pick-up Point for Online Shopping,” Transportation Planning Journal Quarterly, Vol. 35, No. 4, pp. 507~542, 2006.

[3]. Bakos, J. Y., “Reducing Buyer Search Costs: Implications for Electronic Marketplaces,” Management Science, 43(12), pp. 1676-1692, 1997.

[4]. Bhatnagar, A. and Ghose, S., "A Latent Class Segmentation Analysis of E-Shoppers," Journal of Business Research, Vol. 57, pp. 758~767, 2002.

[5]. G. Draxler, J. Sametinger, A. Wiesauer, “Electronic Payment and Online Gaming,” Proceedings of the 16th International Conference on Distributed Multimedia Systems, October 14-16, Oak Brook, USA, 2010.

[6]. Grabner-Kraeuter, Sonja, “The Role of Consumers’ Trust in Online-Shopping,” Journal of Business Ethics, 39(1/2), pp. 43~50, 2002.

[7]. Lee, K.O. and Turban, E., “A Trust Model for Consumer Internet Shopping,” International Journal of Electronic Commerce, Vol. 6, No. 1, pp. 75~91, 2001.

[8]. Visser, E-J. & M.Lanzendorf, “Mobility and Accessibility of B2C E-Commerce: A Literature Review,” Tijdschrift voor Economische en Sociale Geografie, Vol. 95, No. 2, pp. 189~205, April 2004.

[9]. Internet in Taiwan 2010, FIND (Foreseeing Innovative New Digiservices): http://www.find.org.tw/find/home.aspx?page=many&id=282

[10]. Taiwan Network Information Center 2010 (TWNIC): http://statistics.twnic.net.tw/item04.htm

[11]. Market Intelligence & Consulting Institute (MIC): http://mic.iii.org.tw/aisp/pressroom/press01_pop.asp?sno=225&type1=2

[12]. InsightXplorer: http://news.ixresearch.com/?p=921

386