Thesis On Consumer Decision Making in Online Shopping - Harvard

Thesis on Consumer Decision Making in Online Shopping 1
DISSERTATION ON FACTORS THAT INFLUENCE THE CONSUMER DECISION
PROCESS MAKING IN ONLINE SHOPPING: A CASE STUDY OF THE UK
ELECTRONICS INDUSTRY
By:
University:
Course:
Instructor:
Date:
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION................................................................................................3
1.1: Background of the research topic.........................................................................................3
1.2: Research Aims and Objectives.............................................................................................6
1.3: Research Problems...............................................................................................................7
1.4: Research Questions...............................................................................................................8
1.5: Significance of the study......................................................................................................8
CHAPTER 2: LITERATURE REVIEW..................................................................................10

2.1 Factors that influence the decision making process of consumers to buy online in the UK
electronics industry ...................................................................................................................10
2.2 Factors that influence the decision making process of consumers not to buy online ........16
2.3 Implications for the mangers...............................................................................................18
CHAPTER 3: RESEARCH METHODOLOGY......................................................................20

3.1: Research Design.................................................................................................................20
3.2: Data Collection...................................................................................................................21
3.3: Population and sampling....................................................................................................22
3.4: Research Framework..........................................................................................................23
3.5: Research Ethics & data reliability and validity..................................................................23
3.6: Limitations of the study......................................................................................................24
CHAPTER 4: RESEARCH ANALYSIS...................................................................................25

4.1: Data collection methodology..............................................................................................25
4.2: Sample selection basis........................................................................................................25
4.3: Overall analysis..................................................................................................................26
CHAPTER 5: CONCLUSION & RECOMMENDATIONS...................................................33

5.1: Reseach Contribution.........................................................................................................33
5.2: Base for further Research...................................................................................................34
5.4: Recommendations..............................................................................................................34
REFERENCES............................................................................................................................37
ABSTRACT
This paper mainly gathers and explains the data pertaining to factors and preferences of
consumers, with regard to their decision making process in online shopping mechanisms. A wide
range of users’ decision making processes have been analyzed, which attracts them to do online
shopping and the main factors and causes of influence behind those decisions. Further, another
class of consumers is also analyzed under the category of consumers who do not tend to shop
online, together with the reasons and justifications behind them. Finally, on the basis of this
behavioral analysis of consumers with respect to their online shopping traits, a logical and
consistent recommendations and implications have been set out for the managers who are
practicing in UK electronics industry. Moreover, a research analysis is supported and argued
with the help of primary data collected (and also supported by secondary source of data as well),
in the shape of responses from various universities students, who are whether in favor of online
shopping or against it. These responses have been collected, organized and evaluated on the basis
of well defined questionnaire, addressed to 500 students of different universities. Each students
have selected and highlighted his or her definite reasons, in response to the questionnaire that
why they prefer to shop online or not to shop online. On the basis of data gathered and analysis
performed with the help of designed research methodology, subtle and viable recommendations
are forwarded to mangers of UK electronics industry.

CHAPTER 1: INTRODUCTION
1.1 Background of the research topic
Human race has witnessed some dynamic means of technological variations and
development over the last few decades, which has comprehensively transformed the vary life of
every individuals living on this earth. With technological growth and up gradations, there comes
some diversified range of problems as well long with the margins of improvements in it. Such
problems and issues are however, can be regarded as one of the core facet of technological
developments in modern world. Among those technological circles, there exist some of the state
of the art and cutting edge technological frameworks and structures, which are witnessing an
ongoing updates and emergence on continuous basis. However, internet is among one of those
technology upgrades that has dynamically and substantially transformed the whole way of
thinking and working approach of human being in modern times, as compare to the working
methodologies followed in traditional times.
Anyhow, with the emergence of internet as a strong and epic means of communication
and technology, the human beings all around the globe have put their large means of
dependencies on it, and thus, nowadays, internet affects the working approach and the social
lives of all individuals on a significant basis, in the following broad manner;
 People can easily talk via internet from others living at the other corner of the world
 The can circulate emails at every seconds of the clock,
 Extensively search and explore new range of information on any subjects, i.e. research
can be performed on any single small issue

 Playing games online with others fellows and friends residing in different part of the
globes,
 Even, individuals can execute their shopping needs and requirements through it in just a
matter of few minutes
Therefore, among various classified significance of internet usage over the period of
time, one of the much vital and elegant emergence that internet has offered in recent period of
times, is the successful execution of individuals shopping and purchasing requirements through
the online shopping portals extensively established all over the internet in the form of web
portals and other application formats. Meanwhile, it can be truly said, that internet or online
shopping has become the widely accepted mode of purchasing mechanism for human beings in
modern times, to get their desired goods and services, while sitting at their homes, offices,
restaurants and any other place (Bourlakis et al., 2008).
There are some dynamic features and outstanding advantages offered to individuals, who
entail to meet their shopping needs through internet shopping means. Some of these feature
includes the flow of convenience towards the consumers, in a way that they can be more
informed and alert with regard to different specifications of each of the products and services,
containing, their prices, varieties, discounts, special offers, comparisons and etc, they want to
purchase from online platform (Butler and Peppard, 1998). And due to this extra ordinary
advantage of internet shopping, it has been shown that online shopping means provides a lot
more satisfaction and comfort to modern days consumers, whom seeks better quality product,
time saving, and speedier shopping (Yu and Wu, 2007).

On the other side of advantages being granted by internet shopping mechanisms to the
base of consumers, there are specifically some set of these consumers who are enormously
against the principles of online shopping, as they still feel some kind of discomfort to this online
buying mechanisms. On front line basis, one of the main reasons behind this unrest and
discomfort is the science of lack of trust and confidence on the online companies or seller over
the internet.
Moreover, many of these consumers may have a specific requirement to examine their
intended products before the purchase transactions and also, some of them might also want to
discuss these products features and characteristics among their friend, colleagues and relative, in
order to get more comfort and reliance over such products (H\"aubl and Trifts, 2000). Thus,
these reasons explicitly affect the consumer choice over online purchase and negatively impede
the overall demand for such means of online purchase or online shopping.
In addition, understanding the pattern that shapes the behaviors of these consumers in the
market has emerged as one of the most important elements that influence the success of
companies on the specific market in which they operate. Essentially, the pattern adopted by a
consumer is influenced by the decision making process. This process involves five different steps
which include; recognition of the problem, searching for information, evaluating the alternative
available, selecting the specific product to purchase and finally making the decision to make the
purchase (Punj, 2012 p. 799). Although these steps are involved in every purchase that the
consumer makes, they may vary in terms of the duration that they take. In the more spontaneous
purchases, the steps may take very short periods. Conversely, such steps are usually long in a
process others purchases.

Furthermore, in today’s world of business environment, the advent of the online shopping
method has greatly changed the approach and landscape of the businesses towards the evaluating
the behavior of consumers. This is a process that involves the purchase of goods and services
through the internet based framework (Luo, Ba, and Zhang, 2012 p. 1131). Using this method,
consumers are able to purchase their products and services through this method that has been
greatly viewed as convenient by the consumers who regularly use it. Interestingly, as mentioned
earlier, there are also some class of consumers who explicitly do not use or prefer, online
shopping methods and thus, give priorities to physically shop for their desired and intended
products and services. This difference underlies the consumer decision making process in regard
to the online shopping aspect. On this perspective, some consumers tend to prefer the online
shopping method while others don’t.
1.2 Research aims and Objectives
The aims and objectives of any research provides the basic premise for the researcher for
his or her research topic, so that various facts and figures pertaining to the subject of research can
be collected, gathered, organized and evaluated on reasonable and logical basis, to provide a
justified and rational conclusion for the research topic in clear and comprehensive manner
(Cohen, Raudenbush and Ball, 2000). Hence, the main aims and objectives of this research topic
is primarily encompassing the factors, which directly affects the consumers decision making
processes over the mechanism of online shopping attributes. Moreover, the aims and objectives
of this research topic can be summarized as under;

 This study goal is to substantially evaluate and analyze the specific set of factors and
variables, which influence the decision making process of consumers to buy or not to buy
products and services via online mode of shopping outlets.
 Moreover, the research would be targeting to provide a conclusion over the topic of
research, through utilizing a case study based on set of university students in a
comprehensive way, in order to obtain their respective views over the subject of research
 Finally, the researcher will be targeting to evaluate some specific and distinct basket of
factors, which affect the consumer’s behavior and decision making process, to purchase
or not to purchase online in the UK electronics industry. Hence, by doing so, the study of
this research hopes to develop a framework that could be used by the managers in the UK
electronics industry in making decisions on how best to leverage on such factors.
Therefore, the ultimate aim and purpose behind this research and study is to successfully
bridge the knowledge gaps that exeunt in relation to this concept by providing practical solutions
to the managers in the UK electronics industry.
1.3 Research problems
Previous studies in relation to the concept of consumer behavior have focused on specific
elements that influence decision making. For instance, (Kohler, Breugelmans, and Dellaert, 2011
p. 233) evaluates how the aspects of decision aids influence the decision making of online
shoppers. On the other hand, other authors such as (Darley, Blankson,and Luethge, 2010 p. 98)
adopt a general view of the issue by providing non-specific approaches to the issue. However,
this study adopts a unique approach from the previous studies in different dimensions. The study
seeks to evaluate the factors that work in favor and against the decision making of consumers to
shop online in the UK electronics industry.
1.4 Research questions
Research questions merely acts as the devise, which if followed and used correctly,
would directly lead a person to ultimate solutions and conclusions of the problems or subject
under discussion (Alvesson and Sandberg, 2013). However, this study will use three broad set of
research questions in evaluating the overall concepts of the study and obtaining findings in
relation to the study. The research questions have been formulated in such a way that they
provide useful and detailed insights into each of the aspect of the subject being investigated.
Therefore, the questions that the study will seek to address include the following set of questions;
1. What are the factors that influence the decision making process of consumers TO buy
online in UK electronics industry?
2. What are factors that influence the decision making process of consumers NOT TO buy
online in the UK electronics industry?
3. What are the implications of understanding the decision making process of online buyers
for managers in the UK electronics industry?
1.5 Significance of the study
The importance of this study is primarily lies in providing some reasonable level of
conclusions and assessments to the managerial level staff of UK, who are dwelling in UK
electronics industrial market, regarding the affects and influences which a typical consumers
have in their mindsets while making a specific decisions before buying or not buying products
and services via some online purchasing platforms of internet. Hence, the managers after
analyzing the results obtained from this research, would be able to plan their resources and
efforts in the more dynamic and impactful directions of their respective business processes and
department, in order to enhance the business of UK electronics market or industry via online
mode of shopping. Moreover, after getting the results and conclusions of this study, they would
be more certain as to why specific range of consumers prefer online buying, while some of these
consumers do not prefer online purchasing. Accordingly, the possible set of adjustments would
then need to be taken by those managers in a congenial and consistent way, to ensure reasonable
improvement in UK electronics industry. Thus, all this could be successfully implemented once
the core objectives, aims and purpose of this study is clearly understood along with its dynamic
significance in the time to come.
In addition, the findings that will be generated in this study will be of great significance
to different parties in the UK electronics industry as discussed and they are clearly identified as
under;
 Firstly, the findings will provide useful insights that could be used by managers who use
online platform in selling their electronic products in the UK market. Through the
findings of the study, the managers in the UK electronics industry will be in a position to
make adjustments in their online selling model so as to generate more sales.
 Moreover, the findings could be applied in the UK electronics industry and could also
motivate the companies that are yet to embrace the online selling model to do so.
 Also, the findings of the study will benefit the scholars undertaking research in this
subject in the time to come. As, it can be used as a source of data by the researchers and a
guide towards the effective approach that should be taken in collecting, analyzing and
presenting findings in relation to different subjects under investigation.

CHAPTER 2: LITERATURE REVIEW
2.1 Factors that influence the decision making process of consumers to buy online in the
UK electronics industry
Convenience in online shopping and avoidance of traditional shopping hurdles
Different authors have provided their views and assertions in relation to the specific
factors. In a study that uses a sample of 134 online consumers in one of the research work, it was
found that that one of the factors that influences the consumers to buy their goods and services
online is the means of convenience that they achieved while using the online platform for
meeting their dynamic shopping needs (Kohli, Devaraj, and Mahmood, 2014). However, based
on the study, more than 90% of the respondents were of the opinion that the online buying
methods help them in avoiding the cumbersome issues associated or connected with the purchase
of goods in the stores ensuring their physical appearances at those places.
While, some of the aspects that have been noted by research in the study was included
pertaining to the avoidance of traffic jams, money dues and the uneasy mode of contact with the
sales people. In such instance, the people purchasing their products and services online are
usually of the view that they gets the ultimate convenience and avoid the overall hustle when
they go through to obtain a product over online mode of shopping as compare to the traditional
shopping methods.
Moreover, the concepts of convenience is not only limited to certain range of services
which is being offered on online environment of products purchasing, but there are so many
more features to offer as well. Similarly, many consumers do not only opt for online product
purchasing for the sole reasons of the purchase of products only, but they may also be interested
in other range of services as well, which are being offered by companies selling their products
via internet platform (Goldsmith and Flynn, 2005; Parks, 2008). Accordingly, many companies
also offers a range of dynamic services in which these class of customers are interested into, and
these services includes, 24 hours online customer support and complaints services.
Consequently, due to these services a customer can present their respective grievances and
reservations with respect to the products, even after business hours of those companies’ ends.
But the customers would be allowed to ask questions, report complains, get additional
information, product delivery confirmations and many other matter connected with the product
buying (Hermes, 2000).
Furthermore, the stress of this fact could also be proved from one of the research as well,
which shows that 58 percent of consumers chose to purchase online because they may shop as
per their convenience and work routine as they online stores are opened 24 hours a day and 7
days a week, while, when after normal hours of traditional stores, a set of 61 percent of the
respondents were selected to prove that they prefer to shop online because in this way they
would not have to face un avoided crowds, traffic jams and waiting lines, especially during the
periods of vacations and holidays shopping (The Tech Faq, 2008). Hence, among others set of
reasons and influeneces that forms the basis for consumer decision making for online buying,
convience in online shopping is one of the most influenced reasons behind their selection of
online shopping as a mode of products and services purchases.
Attractive way of product presentation
The decision to purchase products online by consumers is also influenced by the fact that
this method allows them to purchase products and services after the physical electronics stores
have closed. Furthermore, research show that the decision of consumers to purchase electronics
online is influenced by the ability of companies to use attractive images that promote the goods
and services (Zhang, Cheung, and Lee, 2014 p. 427). This form of advertising influences the
decision of the consumer to buy products online. In other case, the ability of the companies
involved in the online selling platform, to offer friendly services that creates interaction with the
consumers in influencing their decision to use this avenue. This is because the users are able to
type in their concerns as opposed to using the verbal method which they may not be comfortable
using.
Cheaper prices and time saving
Also, the use of the online approach to purchases helps in saving on the cost and time of
the consumers (Häubl and Trifts, 2013 p. 18). In the cost perspective, some companies offer their
online products relatively at cheaper price than those held in the stores. This creates an incentive
to the consumers who tends to purchase goods online as opposed to visiting the physical stores.
Information
Furthermore, the wide range of informational facts and figures offered by varied
companies regarding their products and services, over online selling platform is the another
positive of online shopping, which is encouraged by consumers while making their purchases
decisions. Similarly, internet has made some ultimate processing of data along with its easier to
front end users, which includes consumers (Wang et al., 2005). Moreover, customers rarely have
an option in most of the cases to touch and feel their intended and desired product and service
selection on online atmosphere, before they actually finalize their decision making process with
respect to that product.

Also, online sellers generally offer more product information that customers can utilize
when making a product buying (Lim and Dubinsky, 2004). In addition, customers highly put
their mindset stress and weight age on that product information that meets their purchase
requirement. Moreover, consumers could also avail the facility of online buying platforms in
getting the information regarding the products, with the help of products’ reviews and feedbacks
by other consumers of similar products and services. Thus, this ultimate feature of product
reviews dynamically affects the decision of substantial scale of customers in today’s world and
also in UK electronic industry as well (Keency’s, 1999).
Some Companies offer their products only online
Still, the online shopping approach has been preferred by many consumers since it helps
the consumer make informed decisions. The availability of the customer review in relation to a
product or service helped them in evaluating whether it suits their needs or not. Furthermore,
some companies offer some products and services online only (Zhang, Shi, and Lu, 2014 p. 428).
Therefore, this decision making process of the consumers is based on the fact that it is the only
channel in which the products and services are available. On the time aspect, consumers do not
have to go to the stores to purchase the goods and services they require. Instead, they can order at
their convenience thus saving ample time in the process.
Historical analysis of UK electronic industry
According to the research and statistics compiled and combined by European Information
Technology Observatory (EITO ), the region of UK has been considered as one of the leading
market or industry in the field of customer electronics items, with a dynamic share of
approximately 22 per cent share in European market in the year 2009 (Quora.com, 2014). Some
of the key points accumulated as a resul of this study has been depicted as under;
 The segment of Audio and Visual Equipment was concluded as the market's most
attractive department in 2009, providing on aggregate basis the total revenue of $8.3
billion, and hence, equalizing to 83.6% of the overall market transaction value.
 Further, UK consumer electronics industry generated the total revenues figure of $9.9
billion in the period of 2009, which represents a compound yearly expansion of 2.2% for
the span ranging from 2005 to 2009.
 Moreover, the market performance was also forecast to decelerate to certain level, with
an anticipated compound yearly expansion rate of 1% for the period of five year from
2009 to 2014, which is highly expected to drive the electronic industry to a net value of
$10.4 billion by the close of 2014 financial/ fiscal year
The analysis is also much important and significant with respect to the UK electronics
industry growth specifically in the line of online shopping of such electronics items. Hence, this
shows that once the overall UK electronic industry reaches to that anticipated level of growth,
then there would some positive chances and opportunities for the growth in online shopping as
well. Thus, this analysis would be particularly helpful from the point of view of managerial level
in UK electronic industry, in order to stimulate the demands of such online buying portals among
the potential consumers as well. Moreover, this analysis has also been depicted and illustrated
with the help of following charts and tables as well.

Source: (Quora.com, 2014)
Source: (Quora.com, 2014)

2.2 Factors that influence the decision making process of consumers not to buy online
Safety and confidentiality issues
Despite the factors that influence the positive reaction of consumer towards the online
shopping platform, there are others which work on the contrary. These are elements that
influence the decision making process of the consumers against using such online shopping
platforms established over the internet. One of the factors that act in this way is the issue of
security and safety (Aggarwal and Vaidyanathan, 2013). Research has found that most
consumers avoid using the online method of shopping due to the fear that their confidential
details may be exposed to the wrong parties (Narayanan, Koo, and Cozzarin, 2012). Such details
include the locations and the bank details. In this regard, they fear for their safety and those of
the funds. This factor has hindered many users globally from shopping online.
Lack of tangibility of product
Also, the limitation of the act that the online shopping method does not offer an
opportunity to view the products before purchase also makes this option less favorable among
the consumers (Thomson and Laing, 2013 p. 497). Some consumers prefer viewing the physical
product before purchase. This is especially in the case of products which are of high value.
Social Communication and poor product quality
In other cases, consumers tend to shy away from the use of the online purchasing
platform due to the urge of engaging with face to face contact with the representatives of the
company from which they are buying from. Also, the past experiences of online users in UK
electronics industry with this form of purchasing process also deter them from using it (LIU,
2013 p. 426). Studies suggest that when a customer encounters bad experiences while using
online buying platform such as the issue of poor quality products.
In addition, some customers would like to prefer to be in a position rather free from
salesperson interaction and pressure, and similarly, this is due to fact that many consumers
mostly feel difficult to make an appropriate product choices in such an interaction and
communication with sales persons, if they have to be confronted with some low scale sales force
personnel with no past selling experience and unprofessional mode of assistance as well (Prasad
and Aryasri, 2009). Moreover, many consumers are categorically associated with their respective
social circles and merely value such peoples advises and suggestion before making any buying
decisions. Thus, they mostly repel to online mode of shopping channels.
Dissatisfaction online services
Many traditional consumers also have a considerable scale of issues pertaining to the
inconsistency of services being offered over online purchasing channels, and thus, they fails to
get their intended products they actually ordered or even get the delivery of such products on
delayed basis. These kind of problems and issues are quite common in this industry and thus, it
affects the decision making process of such consumers in an adverse way. For instance,
consumer may get some unwanted product or miss communicated product or low quality
products or the ordered product does not match the specifications which was mentioned over the
company’s websites and so on (Comegys et al., 2009).
Furthermore, the ordered product might be fragile, incorrect, or not operating at all in
some instances as well. In addition, when customers are faced with these issues, they demand
refunds or product replacement, which are also refused to be entertained by great majority of
online sellers, even though the fault is at their parts and the consumer has not got what they
actually wanted. Delivery is considered as another issue which negatively affects the online
buying decision of huge number of consumers in similar industry and therefore, late, slow,
delayed or wrong delivery and shipping of products, instantly makes the customer walk away
from such online shopping channels and quits this mode of purchasing mechanisms (Laudon and
Traver, 2009).
2.3 Implication for the managers
Based on the findings generated in this study, the managers of different companies in the
UK electronics industry will be in a position to a make decisions that would improve their
efficiency in terms of online selling. This could be undertaken through the evaluation of the main
factors that shift the focus of the consumers towards the online selling aspect and some of the
best practices. However, on the review of literature perspective, there are various strategies that
managers could apply in improving the online selling efficiency.
Full proven Security concerns and quality assurance
One of the approaches could be ensuring that the website of the company is secure. This
should be used to safeguard the details of the customer so as to restore their confidence and trust
issues on online staff and sales persons of company (Kohli, Devaraj, and Mahmood, 2014). Also,
the managers should ensure delivery of products as per the quality described on the internet. On
this note, the managers should ensure that customers are given different options including money
back guarantee (Punj, 2012). This reduces the urge of the customer to view the product first.
Payment security and efficient interaction with an online workforce
Still, the managers should ensure that the interaction of the company representative with
the online shoppers is effective. Instant feedback should be provided and such services should be
provided 24 hours (LIU, 2013). Also, the mangers should ensure that the payment method used
by the website is easy and secure. Moreover, the payment mechanism can be made ultimately
secure, fast, reliable and easy, by the integration of some dynamic software or application into
the online shopping environment of company. This can be easily executed by hiring the
consultancy services of IT related expert team, having sufficient experienced and proficiency in
implementing such payment security methodology on company’s online shopping platform. This
is quite a significant matter with respect to managerial scale of thoughtfulness, as after
implementing this mode of payment safety mechanisms, it would divert some positive energy
among the consumers who quit online shopping means, due one or the other such reasons.
User Friendly websites
Customers are highly affected from the overall outlook and image of a particular online
shopping websites, when they are in the phase of selecting the website or buyer from which they
should buy. Along with the security concerns of websites, each of such web portals should be
designed and developed in such a way that each of the functions and features of such online
purchasing website can be easily understood by the consumers and hence, the website proves to
be of useful and attractive source for the consumers.
In short, the design of websites should be considerably user friendly from all of its
dimensions and possible angles. Furthermore, online stores could transform a range of shoppers
into a possible class of buyers, if the stores can provide a diversified and useful knowledge to its
potential consumers with regard to company’s product, good customer online service pertaining
to their grievances and feedback, and most importantly, easy to access atmosphere of website
(Laudon and Traver, 2009).
CHAPTER 3: RESEARCH METHODOLOGY
This could be viewed as the approach that the researcher will use in collecting and
presenting the data in relation to the subject under investigation. In this regard, there are various
approaches that will be adopted. Furthermore, the research methodology role in the overall
research paper is a significant one because the methodology not only provide relevant line of
action designed in the overall research study, but it also proposed the probable means and
mechanism which would be adopted by the researcher, in order to portray and demonstrate the
overall objective of the research paper (Welman et al., 2005). Thus, understanding, designing
and selecting the valid and consistent and relevant research methodology, which is in line with
respect to the core aims of research study is quite a vital phase in the whole process of research.
3.1 Research design
This is the general perspective that the researcher takes the direction of the research as
per the areas of his or her convenience in investigating the overall subject matter of the research
paper, but this fact is not true to certain extent. On the other hand, the research approach is
usually influenced and affected by the ultimate nature and design of the research question and its
developed objectives and aims. Thus, the approach or design which is usually framed out in
order to address the purpose of research, should be based on viable and vivid scale of research
methodology, i.e. which directly covers the core requirements of research questions and its
objectives and aims (Goddard and Melville, 2004)..
Moreover, as far as this study is concerned with regard to highlight some firm hold
influences of consumers in making their decision over online shopping mechanisms, the research
is dynamically based quantitative research along with some traits of qualitative approach as well.
In addition, the typical research attributes used in this research paper could explicitly describe
the selected research approach as one, which addresses the research questions of what, how and
what in particular (Kothari, 2005).
3.2 Data collection
The overall data and related informational material which has been collected to support
the core objectives and purposes of this paper, comprehensively includes both sources of data,
i.e. secondary and primary in essence. The range of data which has been gathered, collected and
organized as secondary data, are merely obtained from the previous work and study of various
well known researchers, experts, professional and scholars under this field (Scandura and
Williams, 2000). Moreover, various articles, journals and web resources are also being used in
this paper, in order to convey and clarify some basic concepts and theories related to particular
ideas and issues of online shopping channels. Thus, on greater extent, secondary data discussed
in this paper primarily forms as the population of review of research articles and related research
papers of other authors
On the other hand, the ultimate conclusions and analysis section of this research paper, is
primarily based on the sources of data collection made via primary mode of data collection in
particular, and that source used for the purpose of this research is designing and addressing
survey questionnaires to some appropriate targeted audience. This mode is quite a reliable tool of
data collection, as it would be more congenial to provide extensive scale of results towards the
reader and user of this research report, since it directly provides data collection from the views of
the respondents on bullet in basis. The approach is rather fast, convenient, reliable and accurate
from the core purpose of this research topic in many ways. The nature of designed questionnaire
is closed ended one, which stressfully contains few key questions addressing the respondents of
this questionnaires, which can be answered in straight Yes or No. Moreover, these set of closed
ended questionnaires would be targeted to those students or respondents, which have been
selected as a single sample from the whole population.
3.3 Population and sampling
The population composition of this research study would be including the set of 500
students, who have previously used one or the other means of online shopping mechanisms, in
order to purchase products from their or obtained any sort of services from those mediums.
However, out of the total population, a sample of 200 students would be utilized for the overall
analysis of research on the basis of the responses received from the questionnaire.
Moreover, stratified sampling would be used in selecting the students to be included in
the sample size, targeting to form the subject matter of the research design and analysis in
particular. Further, the strata would include those students, who have used online purchase or
services in the UK electronics industry via different companies designed web applications, in the
time frame covering different scale of years.

3.4 Research Framework
The research framework for the purpose of this study is strictly and explicitly entails to
the overall targeted areas, which specifically addresses the reasons and influences due to which a
consumers prefers to buy or not to buy products and services, via online shopping portals in
electronics industry situated n the region of UK (McLean, 1988). Moreover, the research
framework has a further extension towards the area of possible and potential implications for
business managers in the same field, as a result of such influences of consumers over online
shopping mechanisms.
Furthermore, the set of implications could also be analyzed, once the research analysis
and conclusions have been reached and thoroughly discussed, and in addition, those implications
could be suggested to these managers operating in the related field of electronics in the form of
recommendations as well. Therefore, the subject matter of research is controllably encompass to
these set of research framework guidelines and established jurisdictions, as highlighted above.
3.5 Research Ethics & data reliability and validity
Behind the selection and collection of every mode of reviews, research literatures, data,
theories, historical information and practical scenarios, forming the ultimate part of this paper,
either directly or indirectly, a clear and reliable mechanism is executed and performed, in order
to get assuredness sufficient evidences that these set of data and informational materials are
completely valid, accurate, consistent and reliable on its face and internal facets. This process
has been performed on such in depth basis, so that the ultimate results and conclusions obtained
from the core carriage of this research and its performance can be duly relied upon, and no one is
directly or indirectly misguided from the subject matter of this research. Thus, each and every
phase and content of this paper has been strictly kept inline on the professional basis, by
addressing the needs and requirements of data reliability and validity in real sense.
Another issue for which each of the research paper should contain substantial evidences
and information’s with regard to the overall quality of the paper and the content that is presented
in the paper in it, is the display of research ethics on the overall face and internality of the paper
in particular. Thus, in order to enhance the accuracy, reliability, consistence, validity and
dynamics of this research paper and its probable set of conclusions, it is strictly required that the
researcher should comply with possible considerations regarding some core ethical sustainability
of this paper. The matter is much vital in the overall dimensions of research and its possible
results and implications for its reader and users. Thus, it is the prime responsibility of the
researcher to ensure the sensitive issues pertaining to the ethics of this paper in a smart way,
because, if it is not done, it could completely mislead the objectives and essence of this paper,
and the ultimate quality and independence of this research could be compromised (Nosek, Banaji
and Greenwald, 2002).
3.6 Limitations of the study
On the face of this research, there is couple of direct and explicit limitations of the study
undertaken, test performed and the facts obtained. Firstly, the overall small size selected is quite
sample to address such an enormous issue of online shopping traits of consumers in electronics
industry of UK. Thus, due to such small scale of sample size, the overall efficiency and
effectiveness of results and analysis of this paper could be compromised and affected. Moreover,
the possible response rate to the questionnaires may also be relatively small when integrated to
the small scale of sample size, and in addition, it might be due to most student feeling as well,
which may indicate that their precious time is being lost while answering the questions being
asked in the questionnaires. Therefore, on the grounds of these identified limitations, the overall
purpose of this study could be affected to some reasonable level.
CHAPTER 4: RESEARCH ANALYSIS
4.1 Data collection methodology
In order to select the population of students for the purpose of the gathering the data,
pertaining to this research a questionnaire is circulated to a population of 500 students, studying
in different universities and high schools of UK. Each student was approached via their email
addresses and a set of questionnaire is then sent to the intended target population through an
email mechanism. An email message was thoroughly drafted, indicating and specifying the
overall objective behind the circulation of questionnaire.
Further, email message also stressed down the importance and weight age of each
students’ responses to overall questions identified in questionnaires, for meeting the core purpose
of this research analysis and then arriving at the ultimate conclusions. Most importantly, every
target respondent to research questionnaire extensively includes those individuals or students,
who have in some way involved in online products and services shopping and purchases in
definite manner.
4.2 Sample selection basis
On effective basis out of 500 students, the responses of 480 students were successfully
received in a timely and secure manner, as a reply to email message sent. Thus, on the basis of
those responses, a sample of 200 students was randomly selected, without affecting the selected
sample size with any possible errors, biasness and irrationality. This has been done by using the
computer based techniques of random numbers, in order to select the sample which can be truly
represented of a population. Hence, on the basis of selected sample size, the overall analysis of
outcomes of questionnaires’ responses, has been evaluated and accessed via discrete set of
techniques and approaches, as specified and displayed in overall analysis section of this chapter.
4.3 Overall analysis
The following is a set of questionnaire which has been send to each of the respondents
included in the research population.
Questionnaire:
1. Have you ever shopped online? If yes go to question 2. If no continue to question 3
Yes No
2. What made you opt for online shopping?
Convenience
To save time
To save cost
Fear of personal interactions
Product was only available online
3. What has made you not to use online shopping?

Security concerns
No chance of examining product before buying
Bad experience in the past
Need for social contact
In essence, the overall face of questionnaire is divided into two main parts. Firstly, it
specifically address those range of students who actually purchased some typical products via
online shopping platform, while the other set of students or respondents are those, whom have
not previously experienced typical online shopping channels of companies. Moreover, each of
the two classes of questions, have been further classified into the possible reasons for opting or
selecting that particular question, due to which students either opt to purchase via online setups
or not opted to purchase through it.
The summarized responses of sample of individuals or respondents of research
questionnaires have been comprehensively illustrated into the following tabular representation;
Table 1
What made you opt for Total number of students whom have answered the first
online shopping? question of questionnaire in Yes, includes, 130 on aggregate
basis. And thus, they answered the question two of
questionnaire in particular. The detailed analysis of their
responses are as under;

Reasons for selection of Responses in favor of Total percent
online shopping reasons

Convenience 58 44.60%
To save time 34 26.20%
To save cost 18 13.8%
Fear of personal interactions 8 6.20%
Product was only available 12 9.20%
online
TOTAL 130 100%
However, it is clearly evident from the result obtained in Table 1, from the designed
questionnaire address to respondents of research, that majority of students who have indulged
themselves in purchasing via online mode of shopping, entails to approximately 45%. And this
rate is specifically due to the reasons of convenience being offered by online shopping platforms
of companies. Moreover, next 26% of respondents explicitly favor the usage of online shopping
mechanisms because its saves their precious time, which they would have to then spend for
going out shopping in some stores and super markets to meet respective products needs. Thus,
the response rate substantially indicates that this range of respondents of sample representing
26% dynamically enjoys shopping via online platforms because it’s save their considerable
amount of valuable time.
In addition, another 14% of respondents favors online platforms because it saves and
preserves their comprehensive span of cost and reduce their overall shopping expenditures. This
expenditure highly points out the saving in the form of travelling cost of shopping to stores and
retail outlets of companies. Then, next set of respondents representing approximately 6%, who
are in direct favor of online shopping techniques as they don’t like any sort of personal
interactions with company’s sales personnels on one on one basis. Finally, a response rate of
9.20% out of the sample size of 130, specifically pursue online buying techniques, only due to
the availability of desired products on online platforms and not in any other physical stores or
retail outlets or super markets in particular.
However, when further analyzing the results on accumulated basis, the response rate of
approximately 71% of these students, specifically favors two broad reasons while conducting
online shopping via companies’ web platforms, and the reasons includes, convenience and time
saving.
Table 2
What has made you not to Total number of students whom have answered the first
use online shopping? question of questionnaire in No, includes, 70 on aggregate
basis. And thus, they answered the question three of
questionnaire in particular. The detailed analysis of their
responses are as under;

Reasons for not selecting of Responses in favor of Total percent
online shopping mechanism reasons

Security concerns 31 44.30%
No chance of examining 23 32.90%
product before buying

Bad experience in the past 10 14.30%
Need for social contact 6 8.50%
TOTAL 70 100%
Table 2 specifically highlights the responses of those respondents of research
questionnaires, whom are against online shopping mechanism and thus, they do not prefer to
shop via online platforms of companies, due one or the other highlighted reasons identified in the
research questionnaire analysis. The majority of respondents, aggregates to 31 in number out of

70, hence, representing the sample rate of 44% approximately, whom do not shop online because
of several security concerns involve in online shopping particularly, which may include,
disclosure of personal confidential information to company’s personnel, in the form of disclosing
account number, bank details, credit card details and many others.
Further, another 34% of respondents do not prefer to buy via online mechanisms, because
they do not have the opportunity to physically check and analyze the products on these
platforms. Moreover, a rate of 14.30% and 8.50 % marks their unsupportive traits to online
shopping channels of companies, due to the specific reasons of some prior bad experiences in
using those platforms and a need for typical social contact while making their purchases,
respectively.
Therefore, a significant rate of respondents analyzed in research, are against the usage of
online shopping platforms, on the majority and substantial scale. And this primarily because of
various security concerns in first instances and most importantly, the minimal chances of
examining the products on their tangibility grounds before they can be actually purchased.
Furthermore, each of this analysis has also been depicted with the help of bar diagrams as well.
What made you opt for online shopping?

60
50
40
30
Number of respondents
20 supporting each reasons
10
0
ce e
en m t
en
i ti cos ns
nv ve ve tio
e Percentage representation of
o sa sa ac n lin
C To To te
r o each category of reasons
le
la in ilab
so
n
ava
er ly
ofp s on
ar wa
Fe ct
u
od
Pr
What has made you not to use online shopping?
35
30
25
20
Number of respondents
15 supporting each reasons
10
5
0
ns ...
cer ct st Percentage representation of
n u pa ct
co
y o d e ta
each category of reasons
t r h n
ri gp in
t co
cu in e ial
Se in nc o c
xa
m
e rie o rs
f e p f
eo ex ed
nc
B ad Ne
a
ch
N o
Furthermore, the analysis has also been display and demonstrated with the help of
following pie diagrams as well, for each set of research questionnaire analysis;
What made you opt for online shopping?
Percentage representation of each category of reasons
Convenience
To save time
To save cost
Fear of personal interactions
Product was only available online
In the analysis performed via pie chart diagram, the major sectors composition of
circumference contains two key factors, and they are convenience of online shopping platforms
to consumers of electronics goods in the region of UK and the time saving attributes of online
shopping mechanisms. The other sectors / reasons are being represented, more or less in the
same proportion of response rate being obtained via questionnaires.

What has made you not to use online shopping?
Percentage representation of each category of reasons
Security concerns
No chance of examining product
before buying
Bad experience in the past
Need for social contact
Furthermore, the category of respondents whom are against the utilization of companies online
platforms for two major reasons of such denial, primarily covers the major area or sector of
above pie diagram. And the reasons merely contain the presence of security concerns and no
chance of product examination in online shopping portals of companies. The respondents
effectively encompass more than 77% of total sample size. However, the other reasons of
respondents, merely accounts for rather lesser portion of pie chart constructed.
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS
5.1 Research Contribution
The research study conducted in this paper explicitly provides definite scale of valuable
analysis and contribution towards the readers and users of the report. The contribution from this
research, specifically demonstrate some key influences of consumers pertaining to online
shopping mechanisms being used in UK electronic industry. Due to which the priority,
preferences and perceptions of those consumers are determined and affected, on both sides of the
research subjects. Thus, a considerable range of consumers are in support of online shopping
methods and actually used them due to their specific purposes, while other set of users and
consumer are against usage of online shopping means in order to meet their buying needs.
5.2 Base for further research
The overall objectives and aims specified in this research paper can be further analyzed
and assessed on the basis each category of research framework, i.e. on the grounds of those
consumers who prefers to use the online shopping platforms and those who do not prefer to use
them.
Thus, each of such research frameworks can be further analyzed by breaking down the
single reasons being highlighted in questionnaire into other sub categorical reasons and
influences as well. Moreover, further research can be continued or this research can be further
extended, in order to obtain the relevant means of justifications of wide range of consumers, with
regard to the each broad category of reasons being highlighted in questionnaire of this research.
5.3 Recommendations
With the help of data and information collected, organized and analyzed in this research
paper, many implications can be portrayed over the managerial staff practicing in UK electronics
market in different companies. These set of implications could ultimately led the overall growth
in the gross revenue of this industry, if some positives facets can be successfully implemented by
managers practicing in this respective departments, in order to boost the online sales transaction
of companies products. Thus, some distinct of recommendations has been presented to these
managerial staff through the study conducted in this research.
Initially, each manager practices their designated duties and responsibilities in different
departments, including marketing, sales, research and development and IT functions, of a
company having an online selling platform, should be in consistent coordination and integration
with all other line managers of these departments or sections. Consequently, such form of
continuous integration would dynamically increase the possible chances of any confusion
removal in meeting the overall objective of a company, for example, to enhance the gross
revenue of companies. Hence, they would positively come also in a strong position, to identify
and discuss each of those reasons which directly influence or do not influence, the consumers to
buy the company’s products from their online platforms.
Moreover, manager should also targets to address the specific needs of transformations
and adjustments of IT related issues and integration, over an online shopping system of
companies, so that major issues like security concerns of consumers and their payment safety
requirements are effectively ensured on overall manner.
Furthermore, another implication which has been specifically highlighted from analytical
phase of this research is the unavailability of product examination on online shopping platforms
of companies. As a result, substantial scale of consumers does not opt for online buying
mechanisms and thus, company’s sales are affected in a negative direction. Thus, managers must
concentrate their dynamic efforts, in order to introduce congenial and consistent mechanisms and
processes which could, provide consumers with a test sample of the company’s products on pre
hand basis. For instance, such products can be delivered via personal salesman of a company or
by post to consumer’s residents. This additional step of managers could significantly alter the
reservations of consumer over online shopping platform of companies at higher side, as now they
could also examine products before actually buying them.
Lastly, managers should further ensure that each products being ordered by consumer
have actually been delivered to intended consumers on timely basis, and whether they actually
gets what they have ordered for. Managers should highly engage and hire, a quality scale of sales
personnel and related workforce at every online node of company selling platforms, so that the
consumers are efficiently and appropriately entertained and addressed by them. In addition, they
must also analyze on periodic basis, that whether design of company’s online portal is simple,
reliable, and fast and thus, user friendly.

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Thesis on Consumer Decision Making in Online Shopping 1

DISSERTATION ON FACTORS THAT INFLUENCE THE CONSUMER DECISION

PROCESS MAKING IN ONLINE SHOPPING: A CASE STUDY OF THE UK

CHAPTER 2: LITERATURE REVIEW..................................................................................10

CHAPTER 3: RESEARCH METHODOLOGY......................................................................20

CHAPTER 4: RESEARCH ANALYSIS...................................................................................25

CHAPTER 5: CONCLUSION & RECOMMENDATIONS...................................................33

practicing in UK electronics industry. Moreover, a research analysis is supported and argued

are forwarded to mangers of UK electronics industry.

1.1 Background of the research topic

methodologies followed in traditional times.

lives of all individuals on a significant basis, in the following broad manner;

 The can circulate emails at every seconds of the clock,

can be performed on any single small issue

matter of few minutes

restaurants and any other place (Bourlakis et al., 2008).

time saving, and speedier shopping (Yu and Wu, 2007).

process others purchases.

shopping method while others don’t.

1.2 Research aims and Objectives

of this research topic can be summarized as under;

products and services via online mode of shopping outlets.

research, through utilizing a case study based on set of university students in a

electronics industry in making decisions on how best to leverage on such factors.

to the managers in the UK electronics industry.

1.3 Research problems

shop online in the UK electronics industry.

1.4 Research questions

online in UK electronics industry?

online in the UK electronics industry?

for managers in the UK electronics industry?

1.5 Significance of the study

significance in the time to come.

make adjustments in their online selling model so as to generate more sales.

presenting findings in relation to different subjects under investigation.

CHAPTER 2: LITERATURE REVIEW

Convenience in online shopping and avoidance of traditional shopping hurdles

of goods in the stores ensuring their physical appearances at those places.

buying (Hermes, 2000).

online shopping as a mode of products and services purchases.

Attractive way of product presentation

Cheaper prices and time saving

respect to that product.

also in UK electronic industry as well (Keency’s, 1999).

Some Companies offer their products only online

their convenience thus saving ample time in the process.

Historical analysis of UK electronic industry

the span ranging from 2005 to 2009.

$10.4 billion by the close of 2014 financial/ fiscal year

with the help of following charts and tables as well.

Source: (Quora.com, 2014)

Source: (Quora.com, 2014)

Safety and confidentiality issues

Lack of tangibility of product

Social Communication and poor product quality

online buying platform such as the issue of poor quality products.

decisions. Thus, they mostly repel to online mode of shopping channels.

Dissatisfaction online services

company’s websites and so on (Comegys et al., 2009).

2.3 Implication for the managers

managers could apply in improving the online selling efficiency.

Full proven Security concerns and quality assurance

Payment security and efficient interaction with an online workforce