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Research Topic:

Effects of customer knowledge and trust in online shopping in

Internet has developed in new delivery channels electronic transactions are
increasing rapidly. This need has arisen to understand how they perceive directly to
buy consumers. Most of the people who use the internet to purchase goods online,
but that there are still some reasons for which consumers are reluctant to buy
online. The attitudes of people toward the purchase online are different in Pakistan.
The purpose of this study is to review the factors felt reservation of consumers in
online shopping.
The main objective of this research is to study, especially what are factors affecting
the consumers directly for online shopping. To this end, a survey was conducted
and the 120 questionnaires were distributed among the students of different
universities and the general public. The replies have been analyzed by means of
frequency distribution, average and chart analysis.
The results of the survey analysis has shown that most of the people already
shopping online and prefer to make their purchases online, but there are some
factors such as psychological factors, social factors emotional factors, and the
privacy factors which affect the buyer attitudes of online purchases. The protection
of privacy and security are major problems that affect the behavior of the
population to buy online. Various attitudes of consumers toward online shopping
are not in rest in the study which reveals that the purchase online is easy,
comfortable and better that conventional shopping due to various factors.
Price, the trust, the convenience and the recommendations have been identified as
important factors. Price was considered to be the most fascinating and affecting
factor for the majority of students and the general public. Most of the consumers
hesitate not to do shopping online, because of the insecure payment and
transactions systems.

The main objective of study is to examine the consumer behavior of purchasing
goods in Pakistan with the help of internet (online shopping). This exploration is to
recognize and get knowledge into shopper conduct towards online shopping
regarding Pakistan, distinguish components which impact internet shopping and
customer conduct to purchase in the Pakistan, to find the explanation for of less
thought of online buyer towards web shopping in Pakistan. The result would
analyze to give a guidance that which factor is affecting online consumers for that
purpose, different previous researches is use to direct the direction and to support
this study. The relationship of independent and dependent variables that will be
part of this study, observed through the literature review.
To study the consumer performance of online shopper in Pakistan in array to gain
insights into their behavior and preferences, decision-making frame work, attribute
for store mixture and life styles encourage online shopping. The objective
inhabitants for this study consists of the urban consumers who are knowledgeable
and belong to Upper and upper-middle socio-economic classes (SEC A and SEC B)
who can be divided into two broad segment, first having ages from 16-25 and
second with age 25 years and more than. The first stated fragment is the major
fragment and insights about its behavior towards online shopping can provide a
sound basis for further research.
A significant size of this segment comprises of students. An effective presence on
social medium websites is necessary and used as a channel to draw more traffic
which is another reason for youth segment for being the majority of consumers.
Since this manufacturing is still in its immaturity in Pakistan, the innovators and
early adopters who are in bulk at this time mostly belong to the explanation above.
This consumer segment is experience an enlarge in spend power which is mostly
consumed by purchases of clothing and accessories, food and electronic
commodities such as cameras, cell phones, tablets, computer or computer related
stuff. Thus we see a similarity among these products and the product lines of major
online shopping sites.The second section consists of working professionals or
business men who have enough returns to purchase products online. Their
purchases are less both in frequency and quantity as compared to the previous

COUNTRIES like India and Pakistan have experienced a slower growth of ecommerce. Developing countries do have the potential of developing an ecommerce base; however it will take time because internet penetration in these
countries is still lower in comparison to developed countries. All this suggests that
online retail competition is expected to increase in the near future. According to a
global consumer report of A.C Nielson published in February 2008, Pakistan was
ranked the worlds second slowest adopter of e-commerce. The low adoption rate
of e-commerce and slow ICT growth in Pakistan might be due to factors like high
cost of computers, unavailability of the internet, low computer and internet
education etc. However, the trend has shifted and there has been a rise in online
shoppers in Pakistan in recent years, especially in the commercial capital. Statistics
show that in 2012, e-tailing in Karachi increased by 12%.
The main reason was terrorism in the city that discouraged citizens to go out and
shop. Shoppers decided it was safer to be at home and risk online security as
compared to going out and risk their lives. Examples of some fast growing ecommerce websites in Pakistan include OLX,, Symbios,,, Shophive, Kaymu and many more. Consumers can buy a wide range
of items ranging from designer wear, smartphones, computers and accessories,
books, cosmetics, perfumes and home dcor items from these online stores.
This research aims to study the e-commerce trends in the international market and
tries to compare it to the Pakistani market. The study has explored the determinants
of e-commerce purchases throughout the world and has compared it to the
determinants in the Pakistani market. It has been observed that the online purchase
behavior of consumers is somewhat similar throughout the world. Factors like
security, privacy, e-service quality, product attributes, perceived benefits and risks
associated with shopping online etc. affect the online buying behavior of
consumers all around the globe. However, where hedonic motivations and website
design are strong predictors of online buying behavior in some countries, they do
not affect online buying behavior of Pakistani consumers.

Literature review:
While there are at present over 20 million Pakistanis online figure which is growing
rapidly there is very slight certification or research on how the internet is being used in the
country. This online survey, conducted through .The Express Tribune and Express Urdu
websites meant to imprison a snapshot of the local internet users viewpoint. Both English and
Urdu sites and their societal media accounts were used to promote the survey in
order to capture a wider, more miscellaneous audience. The survey was conducted over July
28-29, 2013. A total of 1,100 respondents filled out the survey, of which 18-25
year olds make up over half of total respondents, followed by 25-35 year olds. The survey
also highlighted a large gender inconsistency in respondents, with males dominating. This trend
has been highlighted in the past; Pakistans Facebook audience was 70% male, 30%
female as of April 2013.The vast majority of interviewee (94%) are from urban areas, led by
Karachi, Lahore and Islamabad.
Trust as an Instrument to Decrease Complication According to the social
psychologists trust is that what you expect from others behavior in transactions
(Bunker, 1995). We are still unable to find the virtual acceptable definition of trust.
Authors and scholars agree that trust is very important in human transactions, but
most transactions are not held according to the definition of trust (Hosmer, 1995;
Sitkin, 1998; Husted, 1998). Psychologists describe trust as human specific
characteristics (Rotter, 1971). Economists and psychologists are working hard to
reduce the tension and uncertainty in transaction by creating incentives
(Williamson, 1993; Zucker, 1986).
According to Luhmann (1989) trust is a mechanism which helps to lessen the
anxiety of human beings in the situation in which people faces ambiguity. In this
way trust plays vital role for customers involve in transactions. It decreases the
information complexity as well as reducing perceived risk in the transactions
(Rousseau, 1998). Many authors and theorists describe that trust can be built by
personal relationships as there is electronic environment so the stages of trust also
extended because in online markets personal trust is insufficient to decrease the
uncertainty. By functionally trust can be defined as economic framework.
According to economic framework the trust is as cooperative behavior (Ripperger,
1998, p. 45). Trust is simply defined as a one party expecting that the other one
will cooperate with him and would not take unnecessary advantage in the

transaction. Trust must run smoothly either in social or other system according to
the point of view of the person who trusts. Trust can be developed by internal
expertise of trustees, his wish to trust, and trustees own experience as well as the
third party experience can play a vital role in developing the trust (Rousseau, 1998,
Trust can be rise in the presence of agreement on conditions; the existence of trust
can only be made in uncertainty risky and unusual environment. There is no need
of trust in certain and risk free environment. The following conditions of online
shopping elaborates that uncertainty plays a basic role to determine the areas that
trust can be used as a mechanism in the reduction of complexity. Ambiguity as a
Simple Transaction Measurement Related to the Significance of Trust in ECommerce The flow of facts and information on online network face many threats
and problems that may be triggered due to serviceable errors and safety
complications in the communication and information structure or the involved
conduct of actors in electronic shopping can define this. System Reliant Ambiguity
Soopramanien and Robertson (2007) suggest that attitude towards online shopping
depends upon the view of the consumers regarding the activities carried out on the
internet as opposed to conventional shopping environments. Studies have shown
that convenience and time saving are the main reasons that motivate consumers to
shop online. Chen et al. (2010) suggests that convenience denotes shopping
practices on the internet that can reduce time and effort of the consumers in the
buying process. Schaupp and Blanger (2005) argue that E-commerce has made
finding merchants easier by cutting down on effort and time. Nazir et al. (2012)
and Rehman and Ashfaqs (2011) research also demonstrated that online shopping
is better than conventional shopping due to convenience and ease of use, thus is
gaining more popularity in Pakistan.Similar findings were reported in the research
of Iqbal, Rahman and Hunjra (2012) whose aim was to explore consumer
preference to shop online in countries like Pakistan. One of the variables included
in the model was perceived advantages, and it was proved that perceived
advantages of online shopping significantly impacted consumers intention to
make online transactions.Thus, perceived advantages impact the online buying
intention and attitudes of consumers.

Online shopping is going most trendy and widespread in Pakistan these days. It is
a novel trend in Pakistan but it seems that suddenly the trend for online shopping
has been augmented between Pakistani.
It is receiving very universal in Pakistan however it is still not as common as in
Western countries, the equipment times Reported.
Internet has prepared the world a international community. community of Pakistan
are adopting online shopping trend because of the existence of many online
shopping websites in Pakistan.people of pakistan are now mostly aware of online
shoping and mostly wants to do online shoping as well as saving time and

Mostly people of Pakistan purchase goods from their local stores and face
different problems like distance, long line care parking and weather problems.
Now due to innovation in technology the method of shopping is going to be
changed, introduction of online stores change the shopping trend, the way of
shopping is quickly. Mostly all Companies are now offering online shopping
facilities to their customers but customers are hesitating while having online
shopping or mostly not doing online purchasing.
In Pakistan Web shopping model begin by transfering blooms, blessing cakes on
fresh years and birthday occasion. The population of Pakistan does withdraw from
putting their budgetary information for example bank data and MasterCards data
to escape fakes and captivating character. consequently observing in mind the end
goal to stay away from this threat and falter to send cash online sooner than
physical investigation. One more reason is that the bank sustain and other
beneficial framework like PayPal that is not accessible, because of this, industry
people are bringing up the rear 20% to 25% industry.
Timing of delivery of product directly has impact on customer trust.
Word-of-mouth (buzz marketing) play role in building customers trust.
Customer knowledge gives confidence to the customer while having
online shopping.

Effect of digital advertisement on customer buying behavior

The literature review has led to the development of the following hypothesis:
H0: There may no impact of customer trust on online shopping
H1: There may positive impact of Customer trust on online shopping
H2. Product service quality affects the trust of individual in online shopping.
H3. Personal ability to operate the hardware and software effects trust in online
H4. Information of willingness and ability of seller and technical linkage effects

Theoretical framework:
Based on the previous researches, a theoretical framework was developed to
scrutinize the relationship of perceived advantages, perceived risks, hedonic
motivations, psychological factors and website design with online buying behavior
of Pakistani consumers.

Trust 1) Product quality matters to create trust in online shopping. 2) By providing
the quality product trust of consumers can be increased in online shopping. 2)
Customers hesitate to shop online because there is a difference in quality when the
product reaches to the customer.
Product & Service Quality 3) Online shopping can be enhanced by providing the
quality products. 4) Product quality doesnt matter in online shopping. 5)
Companies must provide quality products to build customer trust in online
Persons Ability 6) Functioning of hardware and software also matter in
developing trust in consumer. 7) If a consumer thinks that there is a fault in the E commerce structure, he wouldnt shop online. 8) Customer must aware of using
hardware and software. 9) Customer must authorize to check the security of his
transaction. 10) Companies must have to develop such a technical linkage that is
convenient to customers.

Information 11) The good will of intermediary affects customer trust. 12) A
company must have awareness of customer willingness to shop online. 13) The
good relationship of seller and intermediary can increase the trust of consumer in
online shopping. 14) Intermediaries and bank play a significant role in creating a
trust of consumers. 15) Companies must aware of consumer online behavior. 16)
Privacy issues discourage to customers to shop online. 17) Hackers are always
there so consumers hesitate to trust in online shopping.
Research Questions:
What is an impact of customer trust in online shopping?
For the calculation of the effect of trust in online shopping in Pakistan use
questionnaires, surveys and sampling to find out the result that there is a effect of
trust on online shopping in Pakistan or not.
How customer trusts develop for the online shopping?
If customer have low interest in online shopping than find out what are the main
factors that affect the customer trust in online shopping and how can improve the
trust in the online shopping by overcoming the factors that are effecting the trust.

Research Design:
This section includes that how researcher will be conducted and reach to the end of
the research, and it also explain which type of methodology used.
Quantitative method and primary data collection method in our research is used. To
test the validity of hypotheses which are generated, study the trust level of
individual on online shopping. In order to perform surveys, the educated people
who are aware of the internet are selected. Sample size of 50 respondents selected
and we focus the university area because there are educated people who are aware

of online shopping. We conduct the survey and met the individuals face to face to
achieve the highest reliability in the data collection. The interviews are conducted
by three investigators and also ask from respondent to mention their major online
companies from where they use to shop online. Because by keeping in mind the
major brands they can answer the questions effectively.
The study targets the sample population of consumers drawn from Lahore who
have or dont have any previous experience of online shopping but all of them have
awareness regarding it. Sample size for the study is 350 and it employs
convenience sampling technique. Data was collected primarily using questionnaire
technique. There are five sections in the research questionnaire. Section one
includes questions related to demographic profile of respondents such as gender,
age, relationship status, education etc. Section two consists of questions that relate
to internet usage pattern of respondents. Section three asks respondents about their
previous online shopping experience if any. Section four focuses on questions
regarding their previous online shopping experience. In the end, section five
consisting of five point Lickert-type scale assists in knowing the opinion of people
regarding barriers to online shopping who have or have not shopped online. We
distributed our questionnaire to respondents who are aged 18 years or above.
Before administering the research questionnaire to all respondents, a pre-test was
conducted. That pre-test was conducted on a random sample of 35 respondents in
order to ensure that the question statements are understandable by respondents.
The methodology use in this research is triangulation and deductive in nature.
Triangulation research also called mix research which deal with both qualitative
and quantitative. Surveys (questionnaires and interviews) are conduct online and
tested by the SPSS 20.0 tool to get analysis

Descriptive Research:
Descriptive research is used to describe the variables, characteristic of population,
and phenomenon under study. In descriptive research researcher mostly find cause
and effects among the variables and mostly concern with the what and how

Descriptive is research is based on qualitative data and quantitative data.

Quantitative data analyzed quantitatively by using statistical tools. Descriptive
studies report summarized data such as measuring central tendency including
mean, median, and deviance from the mean, variation, percentage, mode and
correlation between the variables
Respondents and Key Information:
In this study the main respondent of the research are customers who purchase
goods online. In research secondary data is collected from internet, articles, books
and journals. Primary data is collect throw the questionnaire, surveys, interviews
and sampling.
Instruments, Resources and Research Tools:
MS Office
SPSS 20.0
Samples (cluster sampling)
Questionnaires (mixed)
Interviews (structured and unstructured)
For secondary data main source is internet, books and articles and for primary data
researcher use different tools like surveys, questionnaires, interviews and sampling.
Researcher develop new questionnaire which contain both open ended questions
and close ended questions for their research and take interviews from the selected
sample. Maximum size of sampling is 40
Research Procedure:

Data of research is collected from the two main source primary data and secondary
data, use instruments and tools to finalize the data, after using tools analyze the
Researcher use secondary data but more focus on primary data colleting from
questionnaires, interviews and sampling
Mostly interviews and questionnaire are taken through the internet online. In
sampling, researcher use cluster sampling from the population of Islamabad,
Rawalpindi, Lahore and Multan. In population researcher select sample of 40 to 45
who use internet and purchase goods through online.
Ethical Implications:
The data collected from questionnaires, surveys and sampling will be used
according to the research ethics and the data from secondary resource would be
given proper references according to the rule of APA citation style.

The end results, which researcher get from the using of different instruments and
tool, analyze the data and find out the final results that trust have impact on online
shopping or have no impact on online shopping.
Key Reading for Research Design:
Social science research, principles, method and
practices By: Anol Bhattiacherjee
Research Methods for Business Students fifth edition
By: Mark Saunders, Philip Lewis and Adrian

As the research is descriptive and triangulation mostly based on primary data,
researcher conducts their primary data from online surveys and for secondary data
researcher collect data from internet, journals and articles related this topic.
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