Professional Documents
Culture Documents
ProgressID: 1053442
Major: Internet-Based Information Systems
Course: Research Writing and Presentation
Lecturer: Monique M.B. Emelina-Pieter MBA
Date: 30 April, 2010
Online or Traditional Shopping Method?
Table of Contents
Introduction................................................................................................................................................4
Importance of Study................................................................................................................................4
Purpose of Study.....................................................................................................................................4
University of the Netherlands Antilles.....................................................................................................5
The Faculty of Law (JF)........................................................................................................................5
The Faculty of Engineering (TF)...........................................................................................................5
The Faculty of Social Sciences and Economics (SEF)............................................................................6
The Faculty of Arts (Arts).....................................................................................................................6
The Faculty of Social and Behavioral Sciences (BSW)..........................................................................6
Delimitations...........................................................................................................................................7
Setup of Report.......................................................................................................................................7
Literature Review........................................................................................................................................8
Shopping.................................................................................................................................................8
Advantages.............................................................................................................................................8
Disadvantages.........................................................................................................................................9
Problem Statements and Sub Problems......................................................................................................9
Hypotheses............................................................................................................................................10
Methodology.............................................................................................................................................11
Participants...........................................................................................................................................11
Instruments...........................................................................................................................................11
Procedure..............................................................................................................................................12
Shopping Method Preference....................................................................................................................12
Characteristics of the respondents........................................................................................................12
Inferential Statistics...............................................................................................................................13
Conclusion.................................................................................................................................................16
Reference..................................................................................................................................................17
Appendix...................................................................................................................................................19
Appendix I.............................................................................................................................................19
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Online or Traditional Shopping Method?
Appendix II............................................................................................................................................20
Appendix III...........................................................................................................................................23
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Online or Traditional Shopping Method?
Introduction
Shopping is something we do on daily basis. In general there are two ways of shopping, online shopping
and the traditional shopping. Modahl study shows that the internet is transforming the
economy[ CITATION Mod99 \l 1033 ]. E-Commerce is experiencing a rapid growth since the early
years[ CITATION Ala08 \l 1033 ]. According to the authors of Young Consumers Online Shopping, AC
Nielsen said that there are a lot of people using the internet to shop, more than 627 million of people
have shopped online[ CITATION Ala08 \l 1033 ]. The factors that drive consumers to shop on the internet
are still unknown to us [ CITATION Ben04 \l 1033 ]. In this study we will analyze why people:
Shop online
o Sitting at your computer without leaving your home and browse through various online
stores to buy what you need[ CITATION Nut09 \l 1033 ].
Shop the traditional way
o Take a ride in your car to your favorite shopping mall and buy what you want or
need[ CITATION Nut09 \l 1033 ].
Importance of Study
This study is important because we will analyze which factors are influencing the factors that drive
consumers to shop online or keep shopping the normal way. The results can be used by managers that
operate in the traditional shopping method environment. It can help them to avoid future financial losses
and customer erosion. It can also be used for researches to understand the factors leading to leave the
traditional shopping method[ CITATION Raj09 \l 1033 ].
Purpose of Study
The purpose of this study is to collect and analyze information about the UNA students’ shopping
behavior and the factors driving them to such behavior. After we get the results, we can conclude which
shopping method the students prefer; Traditional shopping method or the online shopping method.
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Online or Traditional Shopping Method?
The Antillean Law is lectured at the Faculty of Law. When a Law student graduates from the Faculty of
Law, they will be an all-around jurist. This means that the aspiring jurist can work in many areas.
Graduating with a Bachelor of Law and/or Master of Law will enable the jurist to answer the most
diverse legal questions with which he is confronted based on his acquired knowledge about our legal
system. This course enables the jurist to spread his wings in all sectors of society[ CITATION Uni10 \l 1033
].
The courses given at the Faculty of Engineering are comparable to those of the so-called technical or
vocational colleges (technical universities) in the Netherlands. The dean of the Faculty of Engineering is
responsible for the general management of the faculty and he is assisted in this by the acting
dean[ CITATION Uni10 \l 1033 ].
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Online or Traditional Shopping Method?
The faculty of Arts was established in 2001. They started with the Bachelor of Education program for
Papiamentu and later on with the languages Dutch, English and Spanish.
The Faculty of Arts is one of the youngest faculties of the University. In the past years approximately 30
students have acquired there Bachelor degree in Education[ CITATION Uni10 \l 1033 ].
The faculty of Social and Behavioral Sciences is the newest faculty of the University of Netherlands
Antilles.
The faculty has one main program: Bachelor Social Work with three graduation profiles.
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Online or Traditional Shopping Method?
Delimitations
Total 30 100%
Table 1: Why do respondents shop online?
The second delimitation was the time frame of the data collection. This study was conducted in April.
This is the moth that most students will stay home because most of the courses are ending. So if you
need to approach students at school, you will not find the desired number of students. The students that
you do find will be busy studying or finishing up papers, so they do not have a lot of time spare to fill out
your survey.
Setup of Report
The report will be consisting of 8 chapters namely:
Introduction
o In this section the study will be introduced to find out about the importance and purpose
of the study, the university that the study is being held at and delimitations.
Literature Review
o In this section we will be reviewing the literature to check what they say about the topic
(Online Shopping vs. Traditional Shopping).
Problem Statement & Sub Problems
o In this section the Problem Statement and Sub Problems will be stated along with the
hypotheses.
Methodology
o In this section of the report you will find information about the participants, the
instruments used in this study and the procedure used to approach the respondents.
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Online or Traditional Shopping Method?
Results
o In this section the hypotheses will be tested to answer every sub problem.
Conclusion and Recommendations
o In this section I will state the conclusion/findings of the study and recommendations for
future studies on this topic.
Reference
o In this section you will find the reference list of literature used in this study.
Appendix
o In this section you will find the survey questions and the data file information.
Literature Review
This chapter will provide an in-depth review of the literature. The explanation of online shopping and
traditional shopping will be stated in this chapter. The advantage and disadvantages of both methods
are also explained in this section.
Shopping
The traditional shopping method is when you step in your car and go personally to the shopping malls.
[ CITATION Nut09 \l 1033 ].Online shopping is sitting at your computer without leaving your home and
browse through various online stores to buy what you need[ CITATION Nut09 \l 1033 ] .Customer’s will
not interact personally with a sales person but all the information will be provided through technology
such as websites[ CITATION Zei00 \l 1033 ].Previous studies compared online shoppers and traditional
shoppers. Online shoppers are younger and spend more time on the internet. They are not worried about
the security online[ CITATION Swi03 \l 1033 ]. Donthu and Garcia found out that shoppers that bought
online, seeks convenience, innovation, variety and are more risk oriented than traditional
shoppers[ CITATION Don99 \l 1033 ].
Advantages
One advantage that online shopping has over the traditional shopping is that product information is
available every time you want to[ CITATION Kim06 \l 1033 ]. But the amount of product information you
can find online can be so large that it can present a challenge to consumers.
Online shopping also allows users to buy stuff 24 hours a day from any place[ CITATION Hua03 \l 1033 ].
Looking from a vantage point of the company owner you can say that they will save big on human
resources because there is no need for vendors in the store. The users will be helping themselves by
browsing for the product needed. They will also be freed from the pressure because they do not have to
buy from the vendor and can make a wiser purchase decision[ CITATION Lim00 \l 1033 ].
Online shoppers have different products available online, they can browse through products from all
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Online or Traditional Shopping Method?
around the world without boundaries. They are also able to compare product price and features and
chose the one that fully satisfy them[ CITATION Jin05 \l 1033 ].
Disadvantages
Many people went shopping the traditional way to make social connection and enjoyment. By shopping
online, that enjoyment is lost because you’re shopping alone with no interaction[ CITATION Jin05 \l
1033 ].
Another disadvantage is the privacy issue. Almost 95% of web users do not provide their personal
information when asked[ CITATION Hof99 \l 1033 ] Schaupp and Belanger also found that privacy is one
of the top concerns of online shoppers[ CITATION Sch05 \l 1033 ].Another disadvantage of online
shopping is the information provided. You do not know what the credibility of the information is. We can
explain credibility as believing if the sources of information provided is correct[ CITATION Fog99 \l 1033 ].
Some research shows that consumers do not believe the information that is posted online[ CITATION
McK06 \l 1033 ]. The lack of credibility is one of the biggest factors that prevent consumers to switch
from the traditional method to online method[ CITATION Egg00 \l 1033 ]. When a consumer feels the
source, quality or integrity of the information is doubtful, it is almost impossible to regain that users
trust[ CITATION Fog99 \l 1033 ].
Some study’s’ results show that online shopping’s credibility can be affected by
Website Usability Problems
Consumerism
Security
Those are factors affecting online shopping[ CITATION Wal04 \l 1033 ]
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Online or Traditional Shopping Method?
Hypotheses
To answer the sub-problems and finally the problem statement, we will need to create hypotheses and
test them out. The following hypotheses were created:
Ho: There is a relationship between the factor transaction security and online shopping
Ha: There is no relationship between the factor transaction security and online shopping
Ho: There is a relationship between the factor product price and online shopping
Ha: There is no relationship between the factor product price and online shopping
Ho: There is a relationship between the factor product availability and online shopping
Ha: There is no relationship between the factor product availability and online shopping
Ho: There is a relationship between the factor 24 hours shopping and online shopping
Ha: There is no relationship between the factor 24 hours shopping and online shopping
Ho: There is a relationship between the factor time saving and online shopping
Ha: There is no relationship between the factor time saving and online shopping
Ho: There is a relationship between the factor product comparison and online shopping
Ha: There is no relationship between the factor product comparison and online shopping
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Online or Traditional Shopping Method?
Methodology
In this chapter of the report we will be explaining about the participants, the instruments and the
procedure used.
Participants
The study was conducted among 20 female and 10 male participants of the University of the
Netherlands Antilles (N=30). The age of the participants ranged from19 to 28 years old with a mean of
22.67 (SD= 2.368). The university consists of five faculties of which all of them will be represented in this
study. The amount of students per faculty was divided proportionally according to the total number of
students of the last academic year (2008/2009). Calculations are displayed in the table below.
Instruments
Information was gathered by studying the literature from online databases such as Emerald and Ebsco.
A self-administered questionnaire was also created to collect meaningful data. The questionnaire
consists of 3 sections, namely:
Internet Access
Shopping
Demographics
A convenience sampling method was used to get respondents for the questionnaire.
Convenience sampling is when you select elements without knowing the probability of them being
selected[ CITATION And08 \l 1033 ].
The first section of the questionnaire consists of 2 multiple choice questions of which the respondent will
just have to choose the right answer form the options provided.
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Online or Traditional Shopping Method?
The second section which ask the main questions for the study is a combination of Multiple choice
questions, Nominal scale questions (Yes, do not care, no), the 5 point Likert scale (from very unimportant
to very important or strongly disagree to strongly agree) and open-ended questions.
The third section goes about the demographics.
Procedure
The collection procedure was divided in two parts. The first part was just approaching potential
respondents on the school “Patio” and kindly asking them if they can fill out the survey questions.
Because of the timeframe the data was collected you will not find a lot of students hanging around on
the school “Patio”. Therefore a second part was added to the study. The second part consisted of sign in
on msn messenger and randomly selects students from my list of friends.
The advantage of using msn messenger was that I could still collect data even at night time.
Information about the variables of the dataset are displayed is appendix II.
Once I had all the data collected, I went on to enter the data in SPSS for it to be analyzed.
A total of 30 respondents were approached. There were a total of 10 male respondents representing
33.3% and a total of 20 respondents were female which represents 66.7%. Looking at Table 3 we can
conclude that most of the respondents (12) are 20 and 22 years old which represents 40% of the sample.
The next largest age group is 23 years old which is a total of 5 respondents and represents 16.7 %.
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Online or Traditional Shopping Method?
Online shoppers are the respondents that answered yes on Q7 (Have you ever shopped online?) and on
the other hand traditional shoppers are respondents that answered no. Regarding online shoppers we
can see in Table 4 that 60% of the respondents shopped online and 40% did not shop online.
By building a crosstab of table 4 and gender we can check who buys more online. Looking at the
demographics of online shoppers and traditional shoppers we can see that 60% of both male and female
respondents are online shoppers. This go against the study of Korgaonkar and Wolin which showed that
men are more likely to shop online or use online services online than woman [ CITATION Kor99 \l 1033 ].
Inferential Statistics
Using the literature and the data collected we will answer each and every sub-problem.
The literature stated that the traditional shopping method is the one that you drive from your home to
the shopping mall. You will personally look at your item and buy it[ CITATION Nut09 \l 1033 ].
Using the literature again to answer sub problem 2, we can understand that online shopping sitting at
the computer and browse for your items via the internet[ CITATION Nut09 \l 1033 ]. You do not have to
leave your home to go shopping. There are many online stores which provide their goods to the online
consumer.
Online shopping has disadvantages like lost of enjoyment or social interaction[ CITATION Jin05 \l 1033 ],
privacy issues[ CITATION Hof99 \l 1033 ] and credibility of the product information posted[ CITATION
Fog99 \l 1033 ]. Those are just a couple of disadvantages found in the literature. But online shopping has
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Online or Traditional Shopping Method?
many advantages. Looking at table 6 we can see that product availability is a great advantage of
shopping online.
Product variety is also an advantage of shopping online[ CITATION Jin05 \l 1033 ]. But that does not
seem the case when looking at this sample. Only 3.3% shop online because of the variety of products.
Online stores have advantages for the owners too. They do not have to hire people to work in stores as
the online consumer will help themselves[ CITATION Lim00 \l 1033 ].
Looking at table 7 in appendix I we can see that the significance level of the factors and online shopping
are greater than 0.05 meaning that there is not a significant relationship between the variables. Almost
every factor has a positive relationship, only the transaction security factor has a negative relationship.
Looking at the results of table 7 we will reject H o of every hypothesis. Meaning that the factors product
pricing, 24 hours shopping, product availability, time saving and product comparison are factors
affecting online shopping positively.
Using the same analysis of sub problem 4, we can conclude that the factor transaction security is one of
the factors affecting online shopping negatively (with a Pearson’s correlation of -0.219). And if the
respondents do not buy online, they will be shopping the traditional way.
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Online or Traditional Shopping Method?
Payment Method
Frequency Percentage
Credit Card 9 47.4%
Debit Card 4 21.1%
Bank Transfer 1 5.3%
PayPal 5 26.3%
Total 19 100%
Table 8: Payment Method
We can see that more than 56.7% trust online shopping but still more than 50% do not use their
credit card as payment method. The credit card usage is one of the most vulnerable payment
methods. We can say that the traditional shopping method is safer.
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Online or Traditional Shopping Method?
Conclusion
We can conclude that traditional shopping is very different from online shopping. Both methods have
their advantages and disadvantages. But there are more students shopping online than the traditional
way. Because the stores online offer a better pricing and there is no boundaries for shopping students
tend to look online for their shopping items. The transaction security factor is one of the main reasons
that not everyone is shopping online. Many online users use a debit card or have a PayPal account to
make transactions online. One of the factors that students DO shop online is that the product is not
available locally. Looking at the fact that we live on a small island, many students choose to order their
things online. So we can conclude that students prefer online shopping than the traditional shopping
method.
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Online or Traditional Shopping Method?
Reference
Alam, S. S., Bakar, Z., Ismail, H. B., & Ahsan, N. (2008). Young consumers online shopping: an empirical
study. Journal of Internet Business .
Anderson, D. R., Sweeney, D. J., & Williams, T. A. (2008). Statistics For Business And Economics (10 ed.).
Thomas South-Western.
Benedict, G. C., de Ruyter, K., Toñita, P., & Toñita, M. (2004). What drives consumers to shop online? A
literature review. International Journal of Service Industry Management , 102-121.
Donthu, N., & Garcia, A. (1999). The Internet Shopper. Journal of Advertising Research , 39, 52-58.
Egger, F. N. (2000). Trust me, I'm an online vendor: towards a model of trust for e-commerce system
designs. CHI '00 Extended Abstracts on Human Factors in Computing systems (pp. 101-2). New York:
ACM.
Fogg, B. J., & Tseng, H. (1999). The elements of computing credibility. SIGCHI Conference on Human
Factors in Computing Systems: the CHI Is the Limit, (pp. 80-87). Pittsburgh.
Hoffman, D. L., Novak, T. P., & Peralta, M. (1999). Building Consumer Trust Online. Communications of
the ACM , 42 (4), 80-85.
Huang, Z., Chung, W., & Chen, H. (2003). A graph model for e-commerce recommender systems. Journal
of the American Society for Information Science and technology , 3, 259-74.
Kim, M., Kim, J., & Lennon, S. J. (2006). Online service attributes available on apparel retail websites: An
E-S-QUAL approach. Managing Service Quality , 16 (1), 51-77.
Korgaonkar, P., & Wolin, L. (1999). A Multivariate analysis of Web Usage. Advertising Research , 39 (2),
53-68.
Lee, J. (2005). Advantages/Disadvantages. Retrieved April 30, 2010, from Online shopping:
https://secure.ocf.berkeley.edu/~jinnie/advantage.html
Limayem, M., Khalifa, M., & Frini, A. (2000). What makes Consumers Buy from Internet. Longitudinal
Study of Online Shopping , 30 (4), 421-432.
McKnight, H., & Macmar, C. (2006). Factors of information credibility for an internet advice site.
Proceedings of the 39th Hawaii International Conference on systems Sciences, 6, pp. 113-114.
Modahl, M. (1999). Now or Never: How Companies Must Change Today to Win the Battle for Internet
Consumers. HarperCollins Publishers.
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Online or Traditional Shopping Method?
Nutt, A. (2009, February 2). Traditional Vs. Online Shopping. Retrieved April 5, 2010, from Traditional Vs.
Online Shopping: http://www.thefreelibrary.com/_/print/PrintArticle.aspx?id=1073930046
Rajamma, R. K., Paswan, A. K., & Hossain, M. M. (2009). Why do shoppers abandon shopping cart?
Journal of Product & Brand Management , 18 (3), 188–197.
Schaupp, L. C., & Belanger, F. (2005). A Conjoint Analysis of Online Consumer Satisfaction. Journal of
Electronic Commerce research , 6 (2), 95-111.
Swinyard, W. R., & Smith, S. M. (2003). Why People (Don't) Shop Online: A Lifestyle Study of the Internet
Consumer. Psychology & Marketing , 20 (7), 567-597.
University of The Netherlands Antilles. (2010, March 5). Retrieved April 5, 2010, from University of The
Netherlands Antilles: http://www.una.an/
Walther, J. B., Wang, Z., & Loh, T. (2004). The effect of top-level domains and advertisements on health
web site credibility. Journal of Medical Internet research , 6 (3), 24-32.
Zeithaml, V. (2000). Service quality, profitability and the economic worth of customers: What we know
and what we need to learn. Journal of the Academy of Marketing Science , 28 (1), 31-46.
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Online or Traditional Shopping Method?
Appendix
In this section you will find every appendix that belongs to this study.
Appendix I
Correlations
Online Product Delivery 24 hour Saving Product Transacti
Shopping Compar. Time Shopping Time Price on
Security
Online Pearson 1 .112 .165 .258 .331 .230 -.219
Shopping Correlation
Sig. (2-tailed) .554 .382 .168 .074 .222 .245
N 30 30 30 30 30 30 30
Product Pearson .112 1 .515** .523** .626** .348 .156
Compar. Correlation
Sig. (2-tailed) .554 .004 .003 .000 .059 .409
N 30 30 30 30 30 30 30
**
Delivery Pearson .165 .515 1 .339 .272 .355 .112
Time Correlation
Sig. (2-tailed) .382 .004 .067 .147 .054 .555
N 30 30 30 30 30 30 30
** ** **
24 Hour Pearson .258 .523 .339 1 .499 .598 .249
shopping Correlation
Sig. (2-tailed) .168 .003 .067 .005 .000 .185
N 30 30 30 30 30 30 30
** **
Saving Pearson .331 .626 .272 .499 1 .298 .015
Time Correlation
Sig. (2-tailed) .074 .000 .147 .005 .110 .938
N 30 30 30 30 30 30 30
Product Pearson .230 .348 .355 .598** .298 1 .550**
Price Correlation
Sig. (2-tailed) .222 .059 .054 .000 .110 .002
N 30 30 30 30 30 30 30
**
Transacti Pearson -.219 .156 .112 .249 .015 .550 1
on Correlation
Security Sig. (2-tailed) .245 .409 .555 .185 .938 .002
N 30 30 30 30 30 30 30
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Online or Traditional Shopping Method?
Appendix II
Questionnaire
This research is conducted to find out the student preference between buying online vs. traditional
buying. Please take a few minutes to fill out this survey on the shopping preference of UNA students.
Internet Access
1. How many hours a day do you spend on the internet? (please select the appropriate one)
At Home
At School
At Internet café
At friends
Shopping
Very Neutral Very
Unimportant Important
Yes Do not care No
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Online or Traditional Shopping Method?
Stores Do not care Online
Yes No
Yes No
Credit Card Debit Card Bank PayPal
Transfer
Strongly Neutral Strongly
Disagree Agree
Strongly Neutral Strongly
Disagree Agree
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Online or Traditional Shopping Method?
Strongly Neutral Strongly
Disagree Agree
Strongly Neutral Strongly
Disagree Agree
Strongly Neutral Strongly
Disagree Agree
Strongly Neutral Strongly
Disagree Agree
Demographics
Male Female
SEF TF LAW BSW Arts
Thank you for taking the time to fill out the survey.
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Online or Traditional Shopping Method?
Appendix III
This is the dataset file information which contains the variables in the dataset and the values of the
variables.
Variable Information
Variable Position Label Measuremen Column Alignment Print Write
t Level Width Format Format
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Online or Traditional Shopping Method?
Variable Values
Value Label Value Label
Q1 1 Less than 1 hour Q13 1 Strongly Disagree
2 1 to 2 hours 2 Disagree
3 3 to 5 hours 3 Neutral
4 More than 5 hours 4 Agree
Q2 1 Home 5 Strongly Agree
2 School Q14 1 Strongly Disagree
3 Internet Café 2 Disagree
4 Friends 3 Neutral
Q3 1 Very Unimportant 4 Agree
2 Unimportant 5 Strongly Agree
3 Neutral Q15 1 Strongly Disagree
4 Important 2 Disagree
5 Very Important 3 Neutral
Q4 1 Yes 4 Agree
2 Do not Care 5 Strongly Agree
3 No Q16 1 Strongly Disagree
Q5 1 Yes 2 Disagree
2 Do Not Care 3 Neutral
3 No 4 Agree
Q6 1 Yes 5 Strongly Agree
2 No Q17 1 Male
Q7 1 Yes 2 Female
2 No Q18 1 SEF
Q8 1 Credit Card 2 TF
2 Debit Card 3 LAW
3 Bank Transfer 4 BSW
4 PayPal 5 ARTS
Q11 1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
Q12 1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
Table 11: Variables Values
24