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Title: Consumer buying behaviour towards

online shopping in Pakistan

GROUP MEMBERS
(1)
Mohsin Ali bsf1703154
(2)
Muhammad Haseeb chughtai bsf1703192

Subject: Research Project

Research Paper

Submitted To:
Dr. Asim Iqbal

BBA VIII (Evening)


Abstract
The literature has focused plenty on consumer buying behavior toward online shopping
in Pakistan. the first data is collected for this study through questionnaire from different
managers, employees and students through google form,Facebook,
Instagram,Youtube,Twitter,Pintrest social media sites only and therefore the sample
size is proscribed. These imply that replication studies are needed to
boost generalizability and data representativeness of the study. Moreover, longitudinal
studies are needed within the future to verify the causality among the constructs within
the proposed research model.This data gathered from this research is merely from
Pakistan (mostly respondents are students of various universities). Total 312 responses
are collected to test the buyer buying behavior toward online shopping in Pakistan. The
study found that domain specific innovativeness has positive and significant effect on
customer buying intention that the web-retailers may use new and latest features to
create their online shopping stores more attractive and user friendly. to spice up the
patron impulse purchase orientation, web-retailers may offer updates by e-mails on
product improvement or grant exceptional discounts up to a selected period to draw
in potential clients. Web-retailers can provide loyalty plans and club-membership to
online clients who have brand orientation. To .Moreover study recommends the long
run researchers to conduct this study at national or international level on top managers
and businessman’s.
Keywords: consumer buying behavior, online shopping, Perceived benefit,
inovativeness and shopping orientation.

Introduction
Today, information technology advancement has transformed the planet into a
worldwide village. In recent years, the utilization of mobile phones and mobile
technology has increased. during this why itinerant become the source of e-payment
for the net shopping. This study would be meaningful to feature a big part within
the field of consumer buying attitude by input to current literature on consumer buying
behavior and e-commerce. there's not sufficient research executed in such area in
Pakistan because the advancement of e-trade continues to be slow but rising in other
developing countries. Therefore, this study explores the effect of various factors on e-
shopping behavior of Pakistani customer.

Many people are online at the identical moment and every one of them are potential
clients within the electronic market. the foremost important step for firms is to spot and
evaluate that what's required to consumer and fulfill heir wishes in such a challenging
business environment. Previous studies on consumer online behavior have explored the
main factors affecting online shopping adoption. However, there are limited studies
analyzing consumer buying behavior towards e-shopping with relevancy shopping
motives, perceived benefits of online shopping, and adoption of innovativeness of
consumers in Pakistan. This study would be meaningful to feature a big part within
the field of consumer buying attitude by input to current literature on consumer buying
behavior and e-commerce. there's not sufficient research executed in such area in
Pakistan because the advancement of e-trade remains slow but rising in other developing
countries. Therefore, this study explores the effect of various factors on e-shopping
behavior of Pakistani consumers. Research also recommends means for companies to
advance their virtual existence(physical stores) and improve online selling.
In Pakistan, many companies offer mobile payment services (e.g. Easy paisa by Telenor,
Upraise by Ufone, Mobicash by Mobilink, and Timepey by Zong), and most banks offer
branchless banking facilities. consistent with Arif et al. (2016), since the supply of 3G
and 4G services in Pakistan, the demand for smartphones has risen. Moreover, Pakistan
is witnessing an online boom with over 30 million broadband and 27 million mobile
data users, and 3G/4G services have pushed mobile payment transactions up by five
percent to thirty common fraction in 2015-16 (Ibrahim, 2016).

Online shopping may be a very fast-growing market of the globe. compared to Pakistan,


India adopt this online shopping more quickly. Amazon is incredibly fast spreading in
India. But just in case of Pakistan the acceptance of online shopping is more difficult.
General people don't accept on the nice being presented to them. they are doing not
think to get online because they think that the standard of the merchandise is
also inferior or even it's fraud. In Pakistan many companies like as Jazz(Jazzcash), Easy
paisa, Telenor and Ufone and lots of banks are offering mobile payment. The mob
payment in Pakistan is increase by 5% to 31% in 2015-16.

All the Pakistanis don't seem to be educated and that they don't understand how to


form an order on internet and a few people think that it's very complex method. there's a
requirement to look at which factor evoke positive attitude of consumer toward online
shopping and mob payment consumer's behavior. This study will explain the
consequences of various factor on e-shopping and mobile payment behavior of Pakistani
consumer

The general objective of the study is:


To find Consumer behavior toward the web shopping and mobile payment in Pakistan .
To achieve this general objective, specific objectives are given as under.
We give policy recommendation ;
To stakeholder for improving business by studying the factor affecting the patron buying
behavior.
To marketing agencies for improving business by studying the factor affecting the
patron buying behavior.
To general public/government for improving business by studying the factor
affecting the patron buying behavior.

This study help us to seek out which factor create positive attitude of consumer toward
online shopping and mob payment consumer's behavior.

This study will help to clarify the consequences of various factor on e-shopping and


mobile payment behavior of Pakistani consumer.

RQ1:What is that the impact of perceived benefits on consumer being behavior towards


online shopping?
RQ2: How domain specific innovativeness affect the buying behavior of consumer on
internet?

RQ3:How shopping orientations influence purchasing behavior of online customers?

RQ4:How we will change the attitude of customer toward mob payment?

H1 : there's a major further as positive relation exit in perceived benefit and Consumer


buying behavior toward online shopping and mobile payment.

H2 : Perceived usefulness of mobile service has significant and positive relation with
attitude of customer toward online shopping and mobile payment.

H3 : there's significant still as positive relation exist in shopping orientation and


Consumer buying behavior toward online shopping and mobile payment.

1)This study help the various online business to know the behavior of the


patron toward the web shopping and mobile payment. By this study we are able
to find the various factor which effect the net business.
2)When they're alert to these factor they work to resolve these factor to boost their
business.
3) It help us to reinforce our business by giving more intention to the buyer.

After the intrduction the following section will review the literature of relevant study.In
section 3 we are going to examine the methodology. In section 4 we'll report the results.
In section 5 we are going to discuss the ends up in detail. In section 6 (last section of
study) we are going to summarize the full study
窗体底端

Literature review
Consumer behavior could be a combination of buy and consume items or services.
Subsequently seven steps of consumer buying choice are “need
acknowledgment, explore for data, pre-purchase, evaluation, buy, utilization, post-
consumption assessment and divestment. Blackwell et al. (2006).
E-shopping may be a style of e-commerce which enable client to directly acquire
product and services by any retailer through internet using website. Many author
discuss this in their studies. Some are there Online shopping got much popularity in
use of internet (Bourlakis ental..2008). Online shopping give more contentment to the
customer modern-day who are trying to find ease and speed ( YU and WU,2007).
Most of the those who are involved in online shopping in Pakistan purchase just
cloths and hardware online.
Accoeding to MD.Aminal (8,oct.2018)The World Wide Web has propelled in no
small extent of changes within the attitude and behavior of individuals everywhere the
planet. thanks to this blessing, online shopping has emerged which influenced the
lives of ordinary citizens. Online shopping has also been started in Bangladesh, but
consumers don't seem to be much habituated yet to travel online shopping frequently.

Internet and therefore the online shopping suggest customers an intensive range and


particulars of offered goods, also it enables the consumers to come back out from
their usual shopping habits. Online buyers are required to hunt new technological
skills to form search, assess and attain products. Customer’s choices that are
conventional shopping instead of new shopping methods don't recognize e-shopping
as an ease (Kaufman-Scarborough and Lindquist, 2002).

online shopping may be a kind of e-commerce which enables clients to directly


acquire products or services by any retailer through internet using websites. Online
shopping got much popularity within the users of Internet (Bourlakis et al.,
2008) . Social media platform and cell apps mark one in every of the
utmost successful tools used with the help of using brand supervisor to inspire
consumers make unplanned visits to shops for purchases. within the modern-day
virtual world, many consumers are greater than inclined to percentage their
alternatives and pursuits with the outlets. This offers outlets thoughts and clues on
what impulsive buys to point next (Sun and Wu, 2011). it's consequently positive that
impulse buying is actually a not unusualplace conduct and kinds do what it takes to
leap out any capacity gain associated with it. In online environments, consumers opt
to accumulate product evaluations from different customers to deduce product
excellent and reduce risk. Consumers can easily examine different customers’ online
evaluations and also the income of merchandise in social trade contexts. Hence,
online evaluations is also considered as a sort of online social interactions which
spotlight the trade of knowledge about services or products among one amongst a
sort customers. during this paper, we focus at the impact of online evaluations, as
customer centered marketing factors, on impulse buying. Thus, the customer centered
marketing interplay factors (customer value, cost, convenience,
communication) . during this paper pertain to elements which may be associated
with online evaluations.

e-shopping attitude depends on consumer’s view about the activities executed on


internet as opposite to traditional shopping environment Soopramanien and Robertson
(2007). Literature has revealed that point saving and ease is that the core motive that
encourage customers for online shopping. Chen et al. (2010) described that
convenience stands for performing shopping through internet which will decrease
effort and time of buyers within the process of purchase. Schaupp and Bélanger
(2005)suggest that finding merchants has become easier due to electronic commerce
by scaling down on time and energy.
Degree to which someone is relatively earlier adopts an innovation as compared to
other fellows of his system Rogers and Shoemaker (1971). In general, people love
continuousness in their day-to-day routine and inclusive of the shopping routine.
Whereas Internet and therefore the online shopping suggest customers an
intensive range and particulars of offered goods, also it enables the consumers to
return out from their usual shopping habits. Online buyers are required to hunt new
technological skills to create search, assess and attain products. Customer’s choices
that are conventional shopping instead of new shopping methods don't recognize e-
shopping as an ease (Kaufman-Scarborough and Lindquist, 2002).

Refer to a consumer's needs and desires associated with the selection of outlets


(Moschis 1976; Sheth 1983).Shopping orientations are related to the overall tendency
towards the shopping acts (Brown et al., 2001). This tendency may be exhibit in
varied methods like info search, alternate judgment, and also the selection of product.
Shopping orientations are a particular a part of living style and are functionalized
by variety of actions, concerns and viewpoint narratives which are relative with the
shopping acts (Li et al., 1999). due to the event in online shopping operations,
consumers’ online shopping conduct may well be unique with relation to shopping
orientations they possess. Shoppingorientation may be a substantial indicator to
buy online (Swaminathan et al., 1999). there's an increasing competition within
the market thanks to the looks of numerous stores, that the web retailers should
recognize the shopping orientations of the clients to escalate the e-buying intention
of the shoppers leading to a rise of online sales. plenty of researches validated
that there's a positive impact of shopping orientations on consumer online buying
intentions (Vijayasarathy and Jones, 2000; Park, 2002; Seock, 2003; Gehrt et al.,
2007).

Impulse purchase is unplanned and is that the results of any particular stimulus (Piron,
1991).About 75 percent of buyer’s purchase decisions are mainly made within
the store. This marks a perfect channel for various brands to market impulse buys.
Impulsive buying is that the act of a customer buying a selected product or a service
within a spur of an instant. In other words, the customer had not planned in any
respect to buy the merchandise or a service then again, they attempt to do so with
none premeditation. Therefore, impulsive buying is principally about feelings and
emotions instead of planning and logic.
Impulsive buying could also be yet as a results of a powerful promotional message
(Tifferet and Herstein, 2012.) Impulse purchase occurs when consumer exercise a
sudden wish to shop for anything instantly, lack essential supplementary assessment,
and takes action on the idea of urge (Rook, 1987).Wolman (1973) says that
impulsiveness may be a psychological characteristic which ends in reaction to a
stimulation. Impulse purchase is sometimes created from buying situations that
feature less mental control, higher emotive activation, and far reactive behavior
(Weinberg and Gottwald, 1982).

A quality product creates unshakeable customer loyalty that generates increased leads.
When customers find a product they trust, they return, make repeat purchases, and
recommend the merchandise or service to others. Product quality could be a key to
know the buyer needs and needs. Product recalls are often related to quality
failures and should negatively affect customer satisfaction and firm performance. A
consumer makes purchasing decisions by evaluating gain‐loss values against  a top
quality point of reference.The theory of endogenous references incorporates the
consumer's expectations of shopping for into forming a reference point supported the
consumer's beliefs about quality outcomes (Kőszegi & Rabin, 2006, 2007.
According to Kotler (1996, p. 583), “customer satisfaction and company profitability
are closely linked to product and repair quality. Higher levels of quality lead
to greater customer satisfaction, while at the identical supporting higher price and
lower cost.”
Sjoblom (1996) described that quality is taken into account because the main strategic
factor to require competitive advantage and hence to advance the price of products
and services zis the matter of key concern for companies. Quality orientations effect
on online buying behavior of consumers has been well described in existing literature.

“ This research is to research the factors which affect consumers’ buying behavior
towards online shopping in Pakistan. The study relies on the perception of
respondents (consumers) regarding their buying behavior towards online shopping. A
rapid advancement of Internet technology facilitates buyers to shop for goods or
services from those stores, which provide online shopping and supply detailed
information about product data on Internet. just in case of Pakistan, the acceptance of
those tendencies are more difficult. to just accept that folks are determinant towards e-
shopping especially Pakistani youth. . Therefore, this study explores the effect of
various factors on e-shopping behavior of Pakistani customer”.

Methodology:
The present research was about the factors affecting consumers’ buying attitude
towards e-shopping in Pakistan. So the domain and scope of this study was about the
overall consumers’ buying behavior while shopping online in Pakistan. The finding of
this study was considered to be generalized to the whole domain and population of the
study.
In descriptive study, data is gathered without varying the environment (i.e., not
anything is manipulated). For this purpose a multiple options type questionnaire on 5
points Likert scale was used.The responses on questionnaires were elicited from the
employees of the University of the Punjab, Lahore, The University of Lahore, GIFT
University Gujranwala and The University of Gujrat. They were also familiar with the
use of internet and online resources.

Conceptual framework

Online shopping

Perceived benefits of
online shopping

Domain
specific Innovatiness
Consumer Buying
Behaviour towards online
A survey type questionnaire was developed by following the Likert scale technique
for scale construction of the items in questionnaire. The first portion of questionnaire
was about demographics like gender, age, monthly income and education level. By
following the Likert scale technique for scale construction, the scale was moving from
strongly disagree to strongly agree. Coding is assigned to the scale as: 1 is strongly
disagree, 2 is disagree, 3 is neutral, 4 is agree and 5 is strongly agree. The
questionnaire contains 32 items. There were four sections in the questionnaire.

Out of 311 respondents, the number of males are 180 with the frequency of 57.6%.
The number of females are 120 with the frequency of 38.3%. There are some
respondents who doesn’t want to show their gender their number are 12 with the
frequency of 4.1%.
Out of 305 respondents, the number of respondent’s age between 20-30 are 239 and
the frequency is 78%. The number of respondent’s age between 30-40 are 44 and the
frequency is 14.4%. The number of respondent’s age 40 or more are 17 and the
frequency is 7.6%.

Out of 305 respondents, the number of married respondents are 71 and the frequency
is 23.3%. The number of single respondents are 233 and the frequency is 75.7%.The 8
responses left their blanks.the num of engaged is 1.
Out of 301 respondents, the number of undergraduate respondents are 126 and the
frequency is 41.9%.The number of bachelor respondents are 118 and the frequency is
38.9%.The number of masters respondents are 53 and the frequency is 17.6%.The
number of other respondents are 18.

.Out of 308 respondents, the number of employed respondents are 71 and the
frequency is 21.3%.The number of unemployed respondents are 104 and the
frequency is 33.8 %.The number of student respondents are 131 and the frequency is
41.9%.The number of retired respondents are 9

.
.Out of 308 respondents, the number of respondents have social media accounts are
265 and the frequency is 85.4%.The number of respondents have not social media
accounts are 32 and the frequency is 10.4.
It shows most of the respondents have social media accounts

Out of 305respondents, the number of respondent spend 2 hours are 256 and the
frequency is 83.6%.The number of respondents do not spend 2 hours are 51 and the
frequency is 16.4 %.
Out of 308 respondents, the number of respondents visited websites which select
agree are 119 and the frequency is 38.2%.The number of respondents choose neutral
are 79 and the frequency is 25.2%.Disagree were 49 With a frequency of
15.9%.strongle agree were 33 respondents with a frequesncy of 10.7.

Theb number of respondents who have account on shopping websites are 128 with a
frequency of 41.4%.Neutrals are 55 with a frequency of 17.6%.Disagree are 54
respondents with a frequency of 17.6%.Strongly agree are 49 with a frequency of
16%.Strongly disagree are 23 with a frequency of 7.5%.
Out of 307 the number of respondents buy through online websites are 143agree with
a frequency of 46.3%. Strongly agree are 61 with a frequency of 19.9%. Neutral are
43 respondents with a frequency of 13.7%.disagree are 41 response with a frequency
of 13.4%.Strongly disagree are 21 with a frequency of 6.8%.

Out of 308 the number of respondents agree are 132 with a frequency of
42.5%.Neutral are 70 with a frequency of 22.4%.Disagree are 49 with a frequency of
15.9%.Strongly disagree are 30 with a frequency of 9.7%.Strongly agree are 29 with a
frequency of 9.4%.
Out of 307 respondents agree are 151 with a frequency of 48.9%. Neutral are 74
with a frequency of 24.1%.Disagree are 37 with a frequency of 11.7%.Strongly
disagree are 23 with a frequency of 7.5%.

Out of 308 respondents the number of respondents buy online and get full product
details online agree are 155 with a frequency of49.7%.Strongly agreed are 22 with a
frequency of 7.8%.The number of disagree respondents are 43 with a frequency of
14%.Neutral are 66 with a frequency of 21.4%.strongly disagree are 24 with a
frequency of 7.8%.

Out of 309 respondents the number of respondents use online shopping to buys
unique and new products are agree 147 with a frequency of 47.2%.Strongly agreed
are 74 with a frequency of 23.9%.Neutral are 39 responses with a frequency of
12.3%.Strongly disagree are 26 responses with a frequency of 8.4%.

Out of 306 respondents the number of agree respondents are 160 with a frequency of
51.6%.The number of disagree respondents are 38 with a frequency of 12.1%.The
number of neutral respondents are 71 with a frequency of 23.2%. Strongly agree are
27 with a frequency of 8.8%. Strongly disagree are 12 responses.

Out of 307 respondents the number of agree respondents on this statements are 159
with a frequency of 51.1%.The number of disagree respondents are 33 with a
frequency of 10.7%.Neutral are 70 with a frequency of 22.5%.Strongly disagree are
14 with a frequency of 6%.Strongly agree are 34 with a frequency of 11.1%.

Out of 308 respondents the number of agree respondents on this statements are 166
with a frequency of 52.9%.The number of disagree respondents are 30 with a
frequency of 9.7%.Neutral are 58 with a frequency of 18.8%.Strongly disagree are
9 .Strongly agree are 47 with a frequency of 15.3%.

Out of 305 respondents the number of agree respondents on this statements are 135
with a frequency of 43.9%.The number of disagree respondents are 24 with a
frequency of 7.9%.Neutral are 59 with a frequency of 19%.Strongly disagree are 20
with a frequency of 6.6%.Strongly agree are 70 with a frequency of 22.6%.

CONCLUSION:
The research outcomes have provided managerial implications to different
stakeholders. The findings also provide certain understandings and feedback to the e-
traders to develop and apply different trade tactics to raise consumer’s online buying
intentions. To build the condition for perceived benefits, web-retailers may offer free
subscription to potential online buyers and free samples to test the services and
products. The present research shows that domain specific innovativeness has positive
and significant effect on customer buying intention so the web-retailers may use new
and latest features to make their online shopping stores more attractive and user
friendly. To boost the consumer impulse purchase orientation, web-retailers may offer
updates by e-mails on product improvement or grant exceptional discounts up to a
specific time period to attract potential clients. Web-retailers can provide loyalty plans
and club-membership to online clients who have brand orientation. To target the
quality orientated clients, Web-retailers may provide adequate online report on
product quality and search information of the product over the website to them. The
results ascertained the facts about various aspects of online shopping, it would
provide reliable information that can be interpreted to reach at conclusions.
Furthermore, it is significant to establish that opinion of either group of sample does
not stand as standard. It, however, reflects views of the effectiveness and deficiencies
of online shopping especially in Pakistan. It is also seen with reference to a theoretical
framework for this study, it can assist in reaching at the conclusions about online
shopping in Pakistan.

LIMITATIONS

The data for this study are collected from Facebook,


Instagram,Youtube,Twitter,Pintrest social media sites only and the sample size is
limited. These imply that replication studies are needed to improve generalizability
and data representativeness of the study. Moreover, longitudinal studies are needed in
the future to verify the causality among the constructs in the proposed research
model.This data gathered from this research is only from Pakistan (mostly
respondents are students of different universities)

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