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DECLARATION

This work is being submitted impartial fulfillment the requirements for the MBA programme
of Cardiff Metropolitan University and has not previously been accepted in substance for any
degree and is not being concurrently submitted in candidature for any degree.

Signed (candidate) - ............................................................


Date - ...........................................................

SUPERVISOR’S DECLARATION STATEMENT

Student Name – Wickrama Arachchige Hashantha Shashipriya Hemachandra

Supervisor’s Name - Mr. Sunesh Hettiarachchi

I acknowledge that the above named student has regularly attended the meeting, and
actively engaged in the dissertation supervision process.

Signed (Supervisor) ............................................................


Date - ..............................................................................
ACKNOWLEDGEMENT

Author would like to present his sincere gratitude to Mr. Sunesh Hettiarachchi for his
continuous supervision, guidance and motivation in directing the successful completion of the
research. His priceless guidance towards the proper completion of the research is really
appreciated by the author. Further the guidance provided by other relating lecturers is
respected.
ABSTRACT

A conceptual model is developed to explore the factors that influence consumer buying
behaviour of digital marketing in FM. Merchants in general induce several mechanisms to
make a situation to convince individuals to buy merchandise by creating a novel need. At the
point when a shopper is making a decision for a purchase of specific product or service, the
individual experiences a procedure which is known as Consumer Buying Behavior Process.
This procedure can be characterized as; "the purchasing conduct of definite customer's people
and family units who purchase merchandise and administrations for individual utilization"
Psychological, physical and passionate exercises utilized by individuals when choosing,
acquiring and arranging products or services so as to fulfill their needs and desires.

It wouldn’t be simpler phenomenon to satisfy the customers through marketing, who have
evolved a great deal during the past decade. Getting them to glue to your website or to
marketing activities is a colossal task. It wouldn’t be simpler phenomenon to satisfy the
customers through marketing, who have evolved a great deal during the past decade. Getting
them to glue to your website or to marketing activities is a colossal task. The objectives of this
research are to investigate how digital marketing influences consumer purchasing behaviour
and whether the identified variables based on the previous studies, namely cost, information
fulfillment, prior online shopping experience or consumer trust has an influence on the
consumer purchasing behavior.

Development and the testing of a theoretical framework on the basis of consumer purchasing
behaviour in line with the FM is the most significant contribution of the research.
Questionnaires are developed based on the developed conceptual framework to understand the
co-relationships and the insights of the established dependent and independent variables. A
sample of 368 were approached for the study. The target population of the study consisted of
all online shoppers who have purchased products during the 6 months of period which
consisted of 4552.

KEYWORDS: Consumer Buying Behaviour, Digital Marketing, Online shopping


TABLE OF CONTENTS

DECLARATION.........................................................................................................................I
ACKNOWLEDGEMENT..........................................................................................................II
ABSTRACT..............................................................................................................................III
LIST OF TABLES...................................................................................................................VII
LIST OF FIGURES.................................................................................................................VII
CHAPTER ONE – INTRODUCTION........................................................................................1
1.1 Background of the Study...............................................................................................1
1.2 Research Problem Identification...................................................................................2
1.2.1 Symptoms of the Problem.....................................................................................2
1.2.1.1 Changing nature of purchasing behavior...........................................................2
1.2.1.2 Impact of Marketing Mix.......................................................................................3
1.2.2 Justification of the problem...................................................................................4
1.2.2.1 Changing nature of purchasing behavior...........................................................4
1.2.2.2 Impact of Marketing Mix...................................................................................6
1.2.3 Defining Research Problem...................................................................................7
1.3 Research Question.........................................................................................................7
1.4 Objectives of the Study.................................................................................................8
1.5 Significance of the Study..............................................................................................8
1.6 Limitations of the Study................................................................................................9
1.7 Chapter Outline.............................................................................................................9
CHAPTER TWO – LITERATURE REVIEW..........................................................................11
2.1 Consumer Buying Behaviour......................................................................................11
2.2 Digital Marketing........................................................................................................14
2.3 Price............................................................................................................................18
2.4 Information Fulfillment..............................................................................................20
2.5 Online Shopping experience.......................................................................................23
2.6 Consumer Trust...........................................................................................................24
CHAPTER THREE – RESEARCH METHODOLOGY..........................................................30
3.1 Conceptual Framework of the Research.....................................................................30
3.1.1 Independent Variables.........................................................................................31
3.1.1.1 Price.....................................................................................................................31
3.1.1.2 Information Fulfillment.......................................................................................31
3.1.1.3 Online Shopping experience................................................................................31
3.1.1.4 Consumer Trust...................................................................................................32
3.2 Development of Hypothesis........................................................................................32
3.3 Operationalization.......................................................................................................33
3.4 Research Design..........................................................................................................35
3.4.1 Research Sampling Design..................................................................................35
3.4.2 Population............................................................................................................35
3.4.3 Sample Selection Procedure................................................................................36
3.4.3.1 Sample Size.........................................................................................................36
3.4.4 Data Collection Methods and Techniques Used for Research Analysis.............37
3.4.4.1 Data Collection Methods.....................................................................................37
3.4.4.2 Techniques Used..................................................................................................37
CHAPTER FOUR – DATA PRESENTATION & ANALYSIS...............................................38
4.1 Introduction.................................................................................................................38
4.2 Reliability Test............................................................................................................38
4.3 Demographic data analysis.........................................................................................41
4.3.1 Analysis of sex.....................................................................................................41
4.3.2 Analysis of age....................................................................................................42
4.3.3 Marital Status.......................................................................................................43
4.3.4 Occupation...........................................................................................................44
4.3.5 Monthly Income...................................................................................................45
4.4 Descriptive Analysis of Independent & Dependent Variables...................................46
4.4.1 Analysis on Consumer Behaviour.......................................................................47
4.4.2 Analysis on Information fulfillment....................................................................48
4.4.3 Analysis on Price.................................................................................................49
4.4.4 Analysis on Prior Experience..............................................................................50
4.4.5 Analysis on Trust.................................................................................................51
4.5 Hypothesis Analysis....................................................................................................52
4.5.1 Analysis of Hypothesis 1 (H1o & H1a)....................................................................52
4.5.2 Analysis of Hypothesis 2 (H1o & H1a)...............................................................54
4.5.3 Analysis of Hypothesis 3 (H1o & H1a)...............................................................56
4.5.4 Analysis of Hypothesis 4 (H1o & H1a)...............................................................58
4.5.5 Summary of the Hypothesis Test Results............................................................61
CHAPTER FIVE – CONCLUSIONS & RECOMMENDATIONS.........................................62
5.1 Study Summary...........................................................................................................62
5.2 Conclusion..................................................................................................................63
5.2.1 Impact of Information Fulfillment on Buyer Behaviour.....................................63
5.2.2 Impact of Price on Buyer Behaviour...................................................................63
5.2.3 Impact of Prior online shopping experience on Buyer Behaviour......................63
5.2.4 Impact of trust shopping experience on Buyer Behaviour..................................63
5.3 Recommendations.......................................................................................................64
5.4 Suggestion for Further Research.................................................................................65
REFERENCES..........................................................................................................................66
APPENDIX...............................................................................................................................67
LIST OF TABLES

Table 1- Operationalization.......................................................................................................34
Table 2- Population – FM..........................................................................................................35
Table 3- Alpha value descriptors...............................................................................................39
Table 4- Overall Questionnaire Reliability Statistics................................................................39
Table 5- Preference for online purchasing Reliability Statistics...............................................40
Table 6- Information fulfilment Reliability Statistics...............................................................40
Table 7- Price Reliability Statistics...........................................................................................40
Table 8- Previous experience Reliability Statistics...................................................................40
Table 9- Trust Reliability Statistics...........................................................................................40
Table 10- Analysis of Sex..........................................................................................................41
Table 11- Analysis of age..........................................................................................................42
Table 12- Occupation................................................................................................................43
Table 13- Alpha value descriptors.............................................................................................44
Table 14- Monthly Income........................................................................................................45
Table 15- mean, Std. Deviation and frequencies of dependent and independent variables......47
Table 16- mean, Std. Deviation of consumer behaviour...........................................................47
Table 17- mean, Std. Deviation of information fulfillment.......................................................48
Table18- mean, Std. Deviation of information fulfillment........................................................50
Table 19- mean, Std. Deviation of trust.....................................................................................51

LIST OF FIGURES

Figure 1- Product Recommendation Changes.............................................................................3


Figure 2- Internet Usage in Sri Lanka.........................................................................................5
Figure 3- Share of web traffic......................................................................................................5
Figure 4- Reasons for online clothing shopping..........................................................................6
Figure 5- Consumer Buying Behaviour Process.......................................................................11
Figure 6- Digital Marketing Process..........................................................................................16
Figure 7- Multi-stage Process to define Price............................................................................18
Figure 8- Temporary Involvement.............................................................................................21
Figure 9- Enduring Involvement...............................................................................................22
Figure 10 – Conceptual Framework..........................................................................................30
CHAPTER ONE – INTRODUCTION

1.1 Background of the Study

Digital Marketing is described as purchasing and vending of data, services, and products via
internet of things incorporating e-commerce platforms. Economy is transformed in to greater
heights by advancements in web and electronic commerce that is reshaping business models,
income streams, supply chains and client bases. New business models are born in each
industry of the Economy capturing instant market share and creating new spaces. For an
example Travel & ticketing industry and has gone through a significant change in the most
recent decade. It was revealed that online travel industry contributes about 76% of absolute
net business in India. (Sivasankaran, 2017) Third party websites and airlines are currently in
the forefront in issuing tickets. Clients of internet shopping are pleased with brisk conveyance
and faultless payment transactions instruments building trust in purchasers. Indeed, even
online classifieds have made a fruitful change with employment and matrimonial leading the
pack. Online retailers are presently driving a bigger number of classifications, for example,
appliances, gadgets, books, etc. In these rising models, impalpable resources, for example,
connections, information, individuals, brands, and knowledge sales are becoming the
overwhelming focus.

The web can be a problematic power-driven development, however buyers wherever are
awakening daily to shop on the web. In certain geographic locations of the world, retailers
have been fast to react in building up their own exclusively marked e-commerce platforms to
greater effect. FM an authentic emerging fashion brand from the beautiful island nation
entered in to the wearables market in 2015. The Sri Lankan designer wear arena was finished
oddity to find an expansive curation of designer wear by a portion of the nation's best-known
designers and brands, beside new marks and rising ability. FM with its cutting-edge item
offering comprising of esthetic curation of clothing made with a worldwide intrigue and
interesting structure driven styling, figured out how to charge to the Lankan mold as a
pioneer in the industry in a short span of four years.
1.2 Research Problem Identification

The preferences and inclinations of the purchasers are changing at a glimpse of an eye. The
marketers are thinking that it’s hard to adapt up to the shifting needs of the clients. These
adjustments in the desires for the clients are because of numerous reasons, however one of
the primary reasons is moving purchasing conduct. When a consumer is making a purchase
for a particular product or a service, he or she goes through a process which is known as
Consumer Buying Behaviour Process. This process can be defined as; “the buying behaviour
of final consumer’s, individuals and households who buy goods & services for personal
consumption” (Kotler, Armstrong 2009. P136) There are many factors that can contribute to
the purchasing decision of a consumer. The consumer goes through a process in decision
making in purchases they make. However, Marketers can influence consumers purchasing
decisions than what other factors can do. When examining the conduct of the purchaser, it
tends to be said that they are purchasing benefits rather than products or services. Because of
massive blast in innovative technologies, customer conduct has seen massive shifts, which
has affected the through process of the consumers

1.2.1 Symptoms of the Problem

1.2.1.1 Changing nature of purchasing behavior

As per Nicolaud et.al (2012) in 1990 an investigation was directed by the Marketing Science
Institute so as to distinguish the contributing perspectives which interprets the promoting
theory in to authenticity. According to the discoveries it's required for the organization to
recognize the present and future needs of the clients and components that affect them first.
The increasing online life, e-showcasing and particularly advertising has definitely changed
the purchaser
conduct and
promoting strategy.
Figure 1- Product Recommendation Changes
Source: ExpertVoice, 2019

Figure 1 demonstrates how people seek out product recommendation opinions. Majority of
the people rely on online sources and the online presence of the brands has become much
more important than ever. According to Gorkana (2019) consumer influence on brands has
grown significantly over the past 5 years. As per the report reveals that 68% of the brands are
influenced by consumer opinion than past half a decade. The FM relies majorly on the on the
digital marketing as they currently have only one physical store. However, the brand is
selling apparels across the globe with authentic flair. The apparel and accessories retail via e-
commerce has demonstrated a significant growth over the past decade with a higher
expectation of growth.

1.2.1.2 Impact of Marketing Mix

According to Anderson (1998) past researches has found product quality, packaging and
design, pricing and enticement schemes has a profound impact on brand perception of
consumers that will lead to customer satisfaction. The word of mouth in the virtual space also
has a significant impact on the purchase decision and because the marketing mix has a clear
impact on consumer satisfaction/dissatisfaction, it’s determined that marketing mix has a
strong relationship with the consumer purchasing behaviour of FM.

Marketing mix can be described as an arrangement of selling devices that aids companies to
cater to the defined target markets. (Kotler,2003) He further indicates product, price place
and promotion as the well-known factors utilized by many over a significant period of time.
Now the model has added 3 key factors namely people, processes and physical evidence.
However, the lastly mentioned has a low impact comparatively on the consumer behaviour
with regard to the nature of the business.

1.2.2 Justification of the problem

1.2.2.1 Changing nature of purchasing behavior

According to Hootsuite (2019) the island nation has 6.71 million internet users with active
social media users of 6 million. The penetration rates of both mentioned is of great
significance recorded at 32% and 29% respectively. Without a surprise, 131% of the Sri
Lankan population has mobile connections which is 27.38 million in total and growing. The
key statistical indicators of country’s digital growth exhibit great potential that can be
captured by the brands. The number of internet users grew by 7% compared to 2017 with
22% increase in social media users. Most of the young generation is directly engaged in
social media platforms, internet and online purchasing which is a positive sign for the
country. The median age indicated by the report of Sri Lankans is 33.1. Further 32% of the
total population in Sri Lanka access internet with 6.15 million using internet in their mobiles.
The study further revealed that 76% of the web traffic comes from mobile phones with
laptops and desktops indicating a downfall in the mentioned year by year with a negative
growth rate of 11% in 2017.
Figure 2- Internet Usage in Sri Lanka
Source: Hootsuite, 2019

Figure 3- Share of web traffic


Source: Hootsuite, 2019
Figure 4- Reasons for online clothing shopping
Source: Hootsuite, 2019

1.2.2.2 Impact of Marketing Mix

As depicted by figure 4, an increasing number of consumers are shifting to online purchases


due to fast paced life style and many perceived benefits in the modern era. The customer goes
through a psychological process before he/she makes the purchase decision based on the
identified need or the problem and look for methods to fulfill the same. It’s of utmost
importance to identify the differences in customer’s demographics which will have a
significant impact on pricing and the promotions.

The above factors clearly indicate how marketing mix can be utilized by the organization as
many key indications have been revealed in order to thoroughly plan the mix tools. The
digital marketing mix can be described as the manner by which a business accomplishes the
set marketing objectives utilizing digital innovations. Digital marketing holds the key as the
numbers indicate a significant growth of online purchases.

An advanced blend of digital marketing mix follows similar standards of a customary


promoting blend. Be that as it may, those components are adjusted to the manner in which the
Internet impacts purchaser conduct. It’s imperative to address how digital marketing mix
aspects namely consumer, cost, convenience and communication has been utilized by FM as
a fundamental element of an organization who relies excessively on online purchases.

1.2.3 Defining Research Problem

“The aim of this study is to examine the factors influencing consumer buying behaviour
of digital marketing in FM”

1.3 Research Question

Even through the organization is currently practicing Digital Marketing, no through


investigation has carried out to identify the effectiveness and its impact on the purchasing
decision of the consumers.

Main Research Question

R1: What is digital marketing and does it have a positive influence on the buyer behavior
of FM?

Subsequent Questions

R2: How does cost influence the consumer buying behaviour in digital marketing efforts
of FM?

R3: How does information fulfillment influence the consumer buying behaviour in digital
marketing efforts of FM?

R4: How does online shopping experience influence the consumer buying behaviour in
digital marketing efforts of FM?

R5: How does consumer trust influence the consumer buying behaviour in digital
marketing efforts of FM?
The researched is aimed at finding the answers for the above-mentioned areas of concerns in
a systematic manner.

1.4 Objectives of the Study

- To define digital marketing and investigate how it influences consumer


purchasing behaviour of FM.
- To examine how Cost efficiency has an influence on consumer purchasing
behavior in digital marketing of FM
- To examine how Information Fulfillment has an influence on consumer
purchasing behavior in digital marketing of FM
- To examine how Prior Online Shopping experience has an influence on
consumer purchasing behavior in digital marketing of FM
- To examine how Consumer Trust has an influence on consumer purchasing
behavior in digital marketing of FM

1.5 Significance of the Study

It’s of utmost importance to find out the impact of their digital marketing campaigns and the
effectiveness of their efforts. The critical aspect is to identify the factors that has a positive
influence as well as the negative remarks on the purchasing behavior of the consumers. It will
lead the organization to put more emphasis on the factors that are working well put more
effort on the improvement of those and eradicate the hindrances. In that way FM can
streamline their marketing efforts. Consumer associations in general might have negative
impressions on digital marketing due to various reasons. Out of which the most impactful
would be the misguidance as perceived by the mentioned. The findings would reveal what
should be the best practices adopted by the brand and how it would safeguard their
customers.
Increase in online purchases is an indicator of a progressing economy. The findings would
indicate important insights on the consumer behavior which the regulators of the country
could use to device strategies to uplift the shopping experience which driving economic
growth and safeguard consumers at the same time. So, it is understood that there is a need
to consider Digital Marketing and its effect on purchasing conduct of the customers in
relation to FM.

1.6 Limitations of the Study

The research will be only limited to gather information in Colombo district due to limited
resource availability. It’s perceived that the information gathered from the above mentioned
represents the perception and the factors influence online purchasing on FM across the
country as well as overseas customers. Hence if FM wants to gather insights of the digital
marketing efforts success in relation to different locations of the country or the world, they
have to be satisfied with the general insights arrived from the study of Colombo district
shoppers. Further only questionnaires will be used to gather relevant data and other
mechanism will be used as face to face interactions, focus group discussions, etc.…Hence the
accuracy of the final outcome would solely depend on the trustworthiness of the respondents.

1.7 Chapter Outline

Chapter 1 is the introduction to the research and illustrates the lead up information to the
study, problem identification with justification, the evidence thereof and the relevance
of the research topic with much stress on established research objectives, questions
that the study is trying to find answers for.

Chapter 2 is the literature review of the research problem identified with available
evidence presented on digital marketing and its consumer impact, a consumer
behaviour model, the consumer decision making process by the past scholars and
experts of the subject. The evidence will be gathered and analysed in a systematic
manner to formulate accurate hypothesis to be tested.

Chapter 3 specifies the research methodology of the study. It is divided into four
aspects, namely defining the Conceptual framework of the research, development of a
Hypothesis, operationalization and research design. The systematic selection of the
sample from the population, data collection methods & sources will be further
presented in the chapter.

Chapter 4 comprises of the presentation and analysis of Primary & Secondary data
gathered for the study. Primary data will be collated using SPSS statistical software to
identify correlations, frequencies, regressions and descriptive statistics. Those will be
used in chapter 5 to draw out conclusions and provide recommendations.

Chapter 5 contains the conclusions arrived based on the chapter 4 findings and
recommendations for FM
CHAPTER TWO – LITERATURE REVIEW

2.1 Consumer Buying Behaviour

When a consumer is making a purchase for a particular product or a service, he or she goes
through a process which is known as Consumer Buying Behaviour Process. This process can
be defined as; “the buying behaviour of final consumer’s individuals and households who
buy goods & services for personal consumption” (Kotler, Armstrong 2009. P136). Besides,
Jeddi, et al. (2013) clarifies buyer purchasing conduct as psychological, physical and
passionate exercises utilized by individuals when choosing, acquiring and arranging products
or services so as to fulfill their needs and desires. Moreover, Sharma (2014) characterizes
purchasing conduct as the choice procedures and demonstrations of individuals engaged with
purchasing and utilizing items. Portrays purchaser conduct as a lot of exercises that is
legitimately identified with the good buy of an item or service, its utilization and transfer.
Moreover, he clarifies that these exercises incorporate the choice procedure when the
previously mentioned exercises take place.

Figure 5- Consumer Buying Behaviour Process


Moreover, they express that routine purchasing conduct takes less time as there are no
noteworthy contrasts among brands. At long last, there is no brand dedication in routine
purchasing shoppers as they will in general buy the items most natural to them (Masterson, et
al., 2007) Buyers goes through a systematic 5 step process before they arrive at the
purchasing decision. Problem recognition is the first step which can be defined as “a
psychological process through which the consumer evaluates the difference between the
actual state and the desired state” (Lindquist & Sirgy 2003, p30). Set forth plainly, the client
must have a motivation to accept the purchase requirement, where they want it to be
purchased and how they see themselves or a circumstance is not quite the same as where they
really are before a purchase can occur. The reality is quite different from the longing and this
may trigger an issue for the client. This creates a pathway to the marketer in any case.
Problem recognition is influenced by three factors namely situational, consumer, and
marketing factors. When a consumer arrives at a purchasing decision to buy from FM, there
might be several situational factors which affects or influence his purchase decision. It can be
due to product consumption reason, product acquisition reasons and changed circumstances.
The second step starts with information search. The search process for the customer begins,
once a problem is recognized.

The realization of the potential problem is completed and the customer is pursuing the
resolution. The ideal method for marketers to cement the though in the minds of the
customers is through proper brand positioning and labelling the partnering customers. As a
marketer, the best way to market to this need is to establish your brand or the brand of your
clients as an industry leader or expert in a specific field. They search for information about
the goods they want.

Different sources are available for customers to obtain relevant information.

 Personal sources: One of the most powerful sources of information is obtained from
family members, colleagues, personal networks, etc.
 Commercial source: This involves promotional campaigns, concentrated marketing,
Sales personnel, all sorts of advertising done through, electronic and traditional
sources, etc.
 Public sources: Mass media, organizations that involves in product rating, institutes
that sets standards and so on falls under this category.
 Experimental sources: This type of information is gathered by the use/experiencing
the product or service personally. This has large tendency to outline the purchase
decision.

After fulfilling the information requirement, consumer proceeds to the next stage in making
the purchase decision where evaluation of alternatives happen. During the process, gathered
information is used to evaluate the preferred brands in contention. The attractiveness of the
available alternatives is assessed by using information collected from different sources.
Different factors are used for to build the foundation to assess the alternatives. By and large
consumers use product attributes, strength and the credibility of the brand, satisfaction, etc. in
selection process. Market leadership or the pole position wouldn’t always elect the customer
to absolutely purchase the products or service.

It wouldn’t be simpler phenomenon to satisfy the customers through marketing, who have
evolved a great deal during the past decade. Getting them to glue to your website or to
marketing activities is a colossal task. As an example, Geico who is a general insurance
provider permits the clients to contrast rates between the competition despite the fact that the
rivals might offer cheaper rates (Jones, 2014) It helps to builds up a confiding in client
relationship, particularly during the assessment of options and disentangles the procedure.

After the alternatives have been evaluated, consumers take the decision to purchase products
and services. They decide to buy the best brand.

But their decision is influenced by others’ attitudes and situational factors. Somewhat
surprisingly, the purchase decision falls near the middle of the six stages of the consumer
buying process. At this point, the customer has explored multiple options, they understand
pricing and payment options and they are deciding whether to move forward with the
purchase or not. That’s right, at this point they could still decide to walk away.

Kotler clarifies complex purchasing conduct as a three-stage process where the shopper
initially builds up specific convictions about the item. Also, the shopper builds up a frame of
mind about the item lastly, the buyer settles on an astute decision. Sharma (2012) argues that
there are four phases of shopper’s purchasing conduct namely multifaceted purchasing
conduct, assortment seeking purchasing conduct, cacophony purchasing conduct and
behavioural purchasing conduct. Furthermore, complex purchasing buyers are likewise said
to know about the noteworthy contrasts in the brands accessible in the market. Dogra and
Ghuman (2008) characterizes customers are seeking switching brands as there are huge
divergences in brands when customers are seeking assortment. As indicated by Govindarajan
(2007), expensive, harmful or regularly purchased product products creates cacophony
purchasing behavior in customer Be that as it may, the contrasts between brands are
unimportant. Hence, the buyers are profoundly associated with the investing energy in
observing. Pickton (2010) depict that routine purchasing conduct happen when shoppers buy
with minimal effort the products that are cheap.

This means it’s time to step up the game in the marketing process by providing a sense of
security while reminding customers of why they wanted to make the purchase in the first
time. At this stage, giving as much information relating to the need that was created in step
one along with why your brand, is the best provider to fulfill this need is essential. If a
customer walks away from the purchase, this is the time to bring them back. Retargeting or
simple email reminders that speak to the need for the product in question can enforce the
purchase decision, even if the opportunity seems lost. Step four is by far the most important
one in the consumer buying process. This is where profits are either made or lost.

Just because a purchase has been made, the process has not ended. In fact, revenues and
customer loyalty can be easily lost. After a purchase is made, it’s inevitable that the customer
must decide whether they are satisfied with the decision that was made or not. They evaluate.
If a customer feels as though an incorrect decision was made, a return could take place. This
can be mitigated by identifying the source of dissonance, and offering an exchange that is
simple and straightforward. However, even if the customer is satisfied with his or her
decision to make the purchase, whether a future purchase is made from your brand is still in
question.
2.2 Digital Marketing

As indicated by many researchers, digital showcasing begins from nineteenth century, it’s to
move merchandise and services from retailer to shopper through electronic media by various
methods. Digital marketing easily over take TV, radio, and paper commercials for speed cost
effectiveness, engagement and efficiency. (Bakshi & Gupta, 2015). As indicated by Howard
(2011), organization began to do or spend more on e-advertising as opposed to conventional
with sensational increment in online promotion. E-advertising, computerized social orders
have changed purchaser, society and corporate segment to data, long range interpersonal
communication and instructive area. (Krishnamurthy and Sin, 2014). Person to person
communication locales have market and audience as colossal objectives. They for the most
part get data of goods and services that have been showcased online through Facebook,
YouTube recordings, and other interpersonal interaction destinations. (Elisabeta Ioanăs,
2014).

Study reveals that web-based promoting should be possible by various online instruments like
Social Networking Sites, E-mails, E-promoting, Mobile Marketing, Web Marketing, and
(Dehkordi & Javadian, 2012) It’s proven that web advertising is way simpler rather the
conventional promoting. It declines the advertising cost and target showcasing increments.
They get minimal effort without physical appearance. Result additionally demonstrate that
individuals feel more unwind and agreeable by e-promoting and internet business as opposed
to traditional channels such as TV, Radio, Newspaper, and magazine ad. Study gives the
impression that in web based promoting, organization have their very own social connections,
website, Facebook pages and other systems administration locales to focus on the group of
audiences.

Intended interest group expanded through their social appearance by utilizing social media
advertising, messages, interpersonal interactions and organization received online data from
their client's criticisms. By enjoying the organizations Facebook page potential customers and
their companions additionally get information of that organization's offerings.

However, the Digital marketer (2018) describes the Digital Marketing process as below.
Creating Awareness

Engagement

Subscribe

Convert

Excite

Ascend

Advocate

Promote
Figure 6- Digital Marketing Process

According to the process, the first step is the creation of awareness make sure customers feel
the presence of the organization. Awareness is created mostly through search marketing,
digital advertising, Content marketing as well as social media marketing. In engagement,
organizations are making conscious efforts to develop relationships with the customers.

During the subscribe process, marketers are cognizant about obtaining the contact
information of the customers which provides them the opportunity to reach the customers
constantly. Conversion stage is the most critical for organizations. The way to
accomplishment triumph in this stage now is to offer "passage point offers." that are intended
to give the new prospect colossal incentives without constraining them to invest an excessive
amount of energy. The marketing needs to create excitement. During ascend organizations
are planning to eke out more business opportunities from the same customer. During the
advocate stage organizations have created loyal customers who will talk about the brand.

However, promoters are different from advocates which is the ultimate objective of marketers
to achieve. Advocates willingly do the promotions for brand by talking about the products.
Along these lines organization's objective of decreasing cost of advertising can be achieved.
(Fatema, 2015) The examination demonstrates that under developed economies have less
sway on web-based promoting and selling activities. They still trust or accept on those old
conventional showcasing strategy. Purchasers of modern era, are incredibly affecting
conventional promoting. Research has demonstrated that web-based purchasing and selling
have significantly increased, on the grounds that in this quick moving exploration on
merchandise, customers don't let go effectively on any item before they totally look into on it.

E-showcasing is the eventual fate of globalization and internet promoting industry. Study
demonstrated that online informal exchange has incredibly affecting on customer conduct and
choice. It further demonstrated that 70% of the U.S populace trust web-based shopping by
encountering them actually, through managing various purchasers, venders, and other lawful
web-based shopping sites. There is high level of expansion in internet purchasing in
developed nations instead of weak economies. For e.g. Organizations like Walmart is
exceptionally managing their online clientele, getting their inputs on schedule, catching a
gigantic pool of customers at same time with their conventional purchasers and with their
online purchasers. It is pointed out as a reason why their business exercises increment quickly
at a rapid time frame. (Fay & Wang, 2011)

Digital marketing has an immense objective group of audiences, developing e-innovation has
a high potential to chop down the expense and increment revenue (thompson, 2005). E-trade,
convey day today exercises by having minimal effort and contracting the ideal opportunity
for the two purchasers and merchants. Managing distinctive business divisions and offices, it
joins them at one stage, through web organizations. As contrast with the old customary
promoting, e-advertisers has ease to be uncovered. Through this, on the chance that you need
to purchase items from various nations, anyone can get them in their home. (gangeshwer,
2013).

Researchers argue that web-based advertising have a few objectives and goals which they
need to bargain with. Companies and association use e-promoting strategy for their clients
and prospects to gallop them all the intended information at a certain point. As we realize that
e-showcasing is accessible every minute of every day shopping or ads, they are not bound
with time limit period. Digital marketing doesn’t have the issue of the operating hours of a
business. As contrast with the customary advertising, it centers around number of clicks on
their advertising as they increment their focuses, as opposed to their physical appearance.
Through e-promoting and e-selling our economy and worldwide economy has expanded
emphatically. individuals have not so much time but rather more work to do that they
arranged up as we are living in 21st century, so, web advertising for those bustling
individuals is an enormous advantage, they feel more ok with that. It chops down their cost of
travel and different expenses. This web advertising help shopper to be refreshed and get their
item on time with safely. This sort of buyer disposition impacts the key decision makers of
businesses too.

2.3 Price

Discernment of price of the product or service offerings enormously influences a purchaser's


choice to buy an item. According to Kotler & Keller (2016) the consumer’s view of cost
clarifies many aspects about a product according to their purview and gives a profound
significance to the shoppers. Subsequently, cost is a key determinant of the frequently
purchased goods thusly, impacts the decisions of which brand, store or item to belittle (Faith
and Agwu, 2014). As per the view of Al-Mamun & Rahman (2014) shoppers are
exceptionally levelheaded with regards to judging what benefits they wish to obtain from
purchasing goods and services they pay for. Price consists of three main dimensions: fixed
price, fair price, and relative price.

Kotler & Keller (2016) reasons out fair price as a blend of delivering quality with reasonable
levels of service at a sensible value.

However, marketers rely of multi-stage process to define price of their products. (Economic
decision, 2019)

Demand Price
Pricing Finalize
Set price forecastin comparison
method pricing
objective g ot the with
selection policy
product competitors

Figure 7- Multi-stage Process to define Price

Fixed price can be explained as offering a set price for all types of buyers (Kotler and Keller,
2016). In contract, Relative price is set according to the levels of quality and service offered
by the retailers (Kotler and Armstrong, 2014). Price is considered as an important factor that
influences the purchase decision the most of the consumers as found out by the research
conducted by Komaladewi & Indika (2017) which corelates the finding of Djatmiko &
Pradana (2015). As the obtaining examples contrast from one culture to other it is smarter to
recognize the way of life which suits the sort of acquiring which the products fall under. For
example, Americans have the biggest disposable income and they may be propelled by the
nature of the item towards purchasing decision. They likewise prefer to buy items which
feature their social angles. Everyday choices of purchasers are impacted by various elements.
As the inquiry expresses, those elements can be sorted as psychological and sociological
components.

Lifestyle is the way a person lives and how and when he carries out his or her day to day
activities. A person’s lifestyle depends on the person’s attitudes, values, people they move
around with and also the type of job that they are employed for. Motivation can be defined as
the drive to satisfy needs and wants, both physiological and psychological, through the
purchase and use of products and services. (Lindquist & Sirgy, 2003, pg 235) When the
person is motivated by the means of any trigger points, the price becomes the secondary
element considered to finalize the purchasing decision.

People contend that cost will likewise assume a significantly lesser job on the web, given the
open door for more cost-efficient information to be conveyed. As per this contention in
regards to the value, characteristic is in effect is so obvious and predominant. The position of
choice, with the nonattendance of the measure of data, is that purchaser can invest more
dynamism experiencing it and assessing nonprice trait data (Lynch and Ariely 2000). Web
based acquiring of products or services lower costs are being charged than in customary
outlets (Brynjolfsson & Smith,1999) Additionally, costs charged on a particular product or
service can be more extensive than in customary retailing. They evaluated this might be the
result of more contrasts in non-price traits and administrations; accordingly, cost has a less
fundamental influence in the customer decision process. Moreover, when we endeavor to
manage the various desires, the piece of the expense in the internet buyer's decision
procedure isn't clear. The shopper in the web market will have more data about the items and
services and that the simplicity of inquiry is higher: thus, when customer settling on their
item decision they will be completely educated or will have greater chance to be all the more
completely educated.
It is additionally significant that exploration likewise need to apply for a shopper picking
crosswise over brands. Brynjolfsson and Smith's (1999) study is by all accounts increasingly
explicit, which is progressively centered around impact of cost when choosing to shop online
for a specific item.

2.4 Information Fulfillment

Right now, shoppers are having significantly more conceivable methods to accumulate
relevant information with respect to their arranged buys. The drastic change was made
possible by the extension of the Internet that made the pathway to the social media outbreak,
improvement of algorithms in search engines and predictive content which resulted in
significant improvements of information available to the potential customers. This empowers
buyers to evaluate their intention of purchasing in a greater number of subtleties and a lot
quicker than previously. Too much of information available can also be counterproductive,
on the grounds that customers could get in to a tangle to realize which source to pick and how
dependable it is. Such a large number of information burst out from media and different data
sources can be distrustful. All things considered; it can be rest assured that the buying
behaviour is evolving consistently.

Once the consumer identifies the problem that he has with him, he will start to search
information regarding his target product. Pre-purchase search is about “a search for
information before making a purchase decision” (Lindquist & Sirgy 2003, p35) In some
products, consumers are engaged in post purchase search as well. Because of a few reasons’
clients used to look through data about items and administrations preceding purchase an item
or services. The method for data searches principally depended on the item or the services
which client is going to purchase from specific association. (Regardless of whether it's a
shopper decent or a forte decent) For instance, clients hoping to purchase a specialty product
or shopping merchandise (items progressively sturdy, costly and periodically buy) they allot
sensible time and show more enthusiasm on inquiry data about the items or administrations
which they are going to buy it. For that clients utilize different sorts of media channels to get
the most precise and solid data to fulfill they are tastes needs and needs. It changes from the
general fulfillment which alludes to shopper's general assessment of an association dependent
on all experiences and involvement with that particular association (Jones & Suh, 2000).

Information fulfillment can be influenced by data quality and UI quality as indicated by the
Information framework writing, (DeLone and McLean, 1992). Information that is given by
the online store needs to help the client support. These data should be useful and applicable in
foreseeing the quality and utility of an item or service (Gilly & Wolfinbarger, 2001). So as to
fulfill shopper's information needs, such information should be current when selling products
or services, it ought to likewise be adequate so as to help the buyer when settling on a
decision, reliable in speaking to and designing the substance and furthermore make it clearer
(Wang & Strong, 1996).

However, according to University of Southern California (2018) consumer involvement is a


critical aspect which is described as the amount of effort put in by the potential customer to
search information. Involvement can be either temporary or permanent (enduring). In the case
of temporary involvement, the consumer may not be particularly interested in the product
category, but may become involved long enough to be able to make an informed decision in
an important product category.
Figure 8- Temporary Involvement

In the case of enduring involvement, the consumer remains interested in the category--usually
because of an inherent interest--even if he or she does not anticipate making a purchase
immediately.

Figure 9- Enduring Involvement

Continually observing what is happening in the marketplace, looking for and being open to
new information. Ongoing search can occur in pre-Purchase, after purchase, or both”
(Lindquist & Sirgy 2003, p.36)This will increase the impulse buying which helps
producers/marketers, ongoing search of information improve the satisfaction from the
product. Meantime it’s makes customer more knowledgeable about the product and the
market for it. Due to continuous information search makes future customer
purchasing/buying more reliable and effective. In post purchase search customers mainly tend
to use information to evaluate the product (performance/speed/durability) and options in
available in the market place. Also using the knowledge gathered from post purchase
information search may use it to update customers about new developments of the product or
service they bought. Also, this may help to justify purchased made by the consumers. This is
vital stage for both sellers/marketers and consumers, because post purchase evaluation has
direct impact on repurchasing of the product.

If these evaluations create negative (dissatisfaction) impact on the current customers, will
create a negative influence on future/prospective customers. (Negative reviews/online
blogging). Internal search helps customers to make quick purchasing decisions and costs
effective to customers due to less time spend on gathering information. This can be applied to
the products that customers frequently purchased (consumer products) with an experience of
using the product before. This knowledge/information gathered from Customer’s previous
experiences and the previous memories about the product. These are information obtain
through external sources excluding evaluating the customer knowledge and experiences. This
external information is useful when customers buy specialty goods to use for a considerable
time period and high cost.

2.5 Online Shopping experience

Different consumers use different methods to solve a problem when they faced with a
problem. The decision can be directed through consumer influences as well. For an example,
a consumer who has bought products from FM, he or she might influence the purchasing
decision of someone else through their past experience. Marketers can influence consumers
purchasing decisions than what other factors can do. Motivational arousal means “the sense
of drive to action (motivation) a consumer experiences once a problem or need has been
recognized. Calling this motive into being is arousal” (Lindquist & Sirgy 2003, p32).

The purchasing choice of the buyer is regularly affected by psychological and sociological
elements which are helpful to direct and decipher promoting endeavors and purchasing
process. Sociological elements allude as the impacts on individual conduct owing to the
social quadrant or potentially conduct of the groups to which an individual has a place or
seeks for a place. Social class can be characterized as a "status order in which people and
groups are arranged based on esteem and prominence obtained predominantly through
monetary achievement and collection of riches". (www.businessdictionary.com).

Further it tends to be referenced as a homogeneous division in a general public in which


individuals share comparable qualities, interests, and conduct. Purchasers with more
noteworthy Internet experience will most likely use on the web channels to acquire
information in light of the fact that the expense of gathering the same is less exorbitant than
that from traditional channels (Coupey & Cook, 1998). Purchasers who have a more
noteworthy web experience is probably going to the different view of the trait of the online
channels from that of a web novice. And furthermore, the shopper will have a higher
certainty on the web (Bart et al. 2005). Using the online data may inspire impression of
vulnerability and unpredictability for an Internet tenderfoot. Interestingly. internet experience
may direct the evaluation of online data. Consequently, customers with more web shopping
background will utilize the web as their essential data source and furthermore bound to have
a more noteworthy certainty on the web. Besides, they are likewise almost certain to be
affected by the reviews. Along these lines, we can say that web shopping knowledge will
affect purchaser buy conduct.

2.6 Consumer Trust

When it comes to making a purchasing decision, perceived risk is always involved in buying
behavior for many a year. It has been given many descriptions and it is also been referred as
an individual's subjective belief about potentially negative consequences from his/her
decision (Dowling, 1986). Risk is one of the main concerns of consumers who perceive in
several types of risks. Markers would come up with risk reduction strategies which associate
with one of the two dimensions of perceived risk which are kwon as uncertainty and
consequences.

It is more concerned in reducing the risk of uncertainty rather than the consequences that may
arise mainly because consumers can hardly change unfavourable consequences of their
purchasing decisions though they can reduce the level of uncertainty. For case in point
consumers can depend on brand loyalty or can purchase recognized brands to reduce
uncertainty. It is much more important for the marketers to consider the product type when
they come up with different approaches to evade perceived risk. Some Authors have
inspected the impact of customer trust in digital marketing. It’s perceived that the absence of
trust among online shoppers, is considered as the primary clarification for online shopping to
be bit low sometimes. (Fung & Lee, 1999)

At the point when a buyer does an exchange with an online web store that is depicted to work
in a dubious environment, consumer is less imminent to accept that everything about their
exchange is ensured and common as related to their exchanges with a physical store hands on
experience. It plainly demonstrates that the shoppers have no any physical collaboration with
the vender in online exchanges. Because of this, it can't assess viably the items which are on
offer or to check the trustworthiness of the vender. Besides, it is additionally conceivable the
product received isn't the one that was purchased. Koufaris & Sousa (2002) describes that the
expanding issue with spam, the consistent intermittent reports on programmer assaults and
infections and the presence of a legitimate system that is inadequate, heterogeneous and
incapable can be of a problem.

Indeed, web-based shopping is viewed as being progressively hazardous tasks (Sofres, 2002)
Bitting & Ghorbani (2004) describes that creating trust by utilizing the web is more
troublesome than in conventional channels. As indicated by Reilly (2005) Web 1.0 didn’t go
according the plan as marketing efforts didn’t reflect in sales. However, with the emergence
of Web 2.0 came newly developed technologies and operating mechanisms. This made it
more two-way communication than one way that existed. To reduce the likely functional risk
marketers can call upon on the favorable outcomes and the value it adds to the lives of the
customers. It can be done through by stressing on the brand recognition, past experience and
information from the real owners. And those aspects can be used in advertising to a greater
effect. In order to reduce financial risk, it is always better to money back guarantee or even a
full product replacement for the defects of production.

It is better to make available the price information in order to make customers feel much
safer. It can be further expressed on the accomplishments and the advantages the real users
have achieved in real life. In order to reduce the psychological risk, marketers can create
advertisements & promotion campaigns which will result in improved self-confidence and
self-image. What's more, individuals are arranged in to five diverse social classes namely
Upper class, Upper-working class, Lower-working class, Upper-lower class and Lower-lower
class. It tends to be recognized as one of the most impacting components as it might decide
the sort, quality and the amount of the buys of the shoppers. Reference groups can be
clarified as the people who go in to or take a gander at a lot of individuals as a hotspot for
self-examination or as close to home benchmarks.

Those reference groups regularly impact the buys of the customers with regards to certain
classifications of products as extravagance things and furthermore control the qualities,
demeanors or the conduct of the friends. As indicated by above criteria, if the individual has a
place with in a gathering which comprises of experts, the person in question may be impacted
to carry on as same as the gathering does and if the individual like to be in a gathering which
is viewed as better, it's additionally pushing the individual to pursue the conduct of that
gathering. Culture can be characterized as "the arrangement of qualities, thoughts and frames
of mind that are acknowledged by a homogeneous gathering of individuals and transmitted to
the people to come" (Rohan, 2012). You can discover a few subcultures too which exists with
the way of life itself with particular frames of mind, qualities and mentalities.

Transparency is at the cornerstone of online correspondence organizations are looking for


better approaches to end up reliable and win the regard of individuals. Trust operators are
viewed as individuals who utilize the web for non-push message, are authentic and are
attempting to adapt their business. Trust specialist can be an informal activity title for
individuals with job of network supervisors and it tends to be even individuals working in
PR. The most significant perspective is that individuals and networks would prefer not to be
overseen, but instead dealt with and took care of. Networks are made by individuals with
shared intrigue and they respond contrarily when somebody attempts to practice outer power
over them. Brogan and Smith (2010) portray trust specialists as individuals who can
manufacture fruitful relationships.
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CHAPTER THREE – RESEARCH METHODOLOGY

In chapter three author outlines the research method & strategy, formulation of hypothesis for
testing, research approach, data collection methods, selection of the sample, research process,
data analysis types and the operationalization. The conceptual framework defines the outline
for the research model and outlays the theoretical reasoning that describes the approach
adopted. Author argues that the digital marketing has a significant impact of the buying
behaviour of FM customers. Digital marketing easily over take TV, radio, and paper
commercials for speed cost effectiveness, engagement and efficiency. (Bakshi & Gupta,
2015)

3.1 Conceptual Framework of the Research

Independent Variables Dependent Variable

Price

Information Fulfillment Factors influencing Consumer


purchasing behaviour

Online Shopping
experience

Consumer Trust
Figure 10 – Conceptual Framework

Conceptual framework has been developed based on the findings and relationships identified
through the literature review. Independent variables were established with facts justified
based on the previous researchers work which had been elaborated further during chapter 2.
The purpose of the study is to find out the relationships, positive or the negative impact
created by independent variables on consumer purchase behaviour of FM.

3.1.1 Independent Variables

3.1.1.1 Price

Price has been identified as a critical factor that influences buyer behaviour to a greater
extent. Price perception greatly affects a consumer's decision to purchase a product. The
perception of price explains information about a product and provides a deep meaning for the
consumers (Kotler and Keller, 2016). Hence, price is an important factor in the purchasing
decision, especially for products that are frequently purchased, and in turn, influences the
choices of which store, product, and brand to patronize (Faith and Agwu, 2014). Consumers
are very rational when it comes to judging what benefits they wish to get from buying
products or services they pay for (Al-Mamun and Rahman, 2014).

3.1.1.2 Information Fulfillment

Pre-purchase search is about “search for information before making a purchase decision”
(Lindquist & Sirgy 2003, p35) In some products, consumers are engaged in post purchase
search as well. Because of a few reasons’ clients used to look through data about items and
administrations preceding purchase an item or services. The method for data searches
principally depended on the item or the services which client is going to purchase from
specific shop. (Justified in literature review 2.4)

3.1.1.3 Online Shopping experience


The purchasing choice of the buyer is regularly affected by psychological and sociological
elements which are helpful to direct and decipher promoting endeavors and purchasing
process. Sociological elements allude as the impacts on individual conduct owing to the
social quadrant or potentially conduct of the groups to which an individual has a place or
seeks for a place. Purchasers with more noteworthy Internet experience will most likely use
on the web channels to acquire information in light of the fact that the expense of gathering
the same is less exorbitant than that from traditional channels (Coupey & Cook, 1998)The
online shopping experience is greatly shaped by the amount of information customer is
exposed to, response speed of the vendors, timely delivery, quality of the delivered goods and
the correct match of the goods delivered in line with the displayed goods online.

3.1.1.4 Consumer Trust

When it comes to making a purchasing decision, perceived risk is always involved in buying
behavior for many a year. It has been given many descriptions and it is also been referred as
an individual's subjective belief about potentially negative consequences from his/her
decision (Dowling, 1986). Risk is one of the main concerns of consumers who perceive in
several types of risks. Marketers would come up with risk reduction strategies which
associate with one of the two dimensions of perceived risk which are kwon as uncertainty and
consequences.

3.2 Development of Hypothesis

Hypothesis can be described as a provisional, yet measurable proclamation which is


anticipated to discover in exploring gathered data & information, in line of the recognized
both independent and dependent variables. Beneath hypothesis is assembled based on the
factors identified and justified during chapter 2. Hypothetical relationship between 4
Independent factors, namely Cost, Information Fulfillment, Prior Online Shopping experience
and Consumer Trust has been tested against the identified dependent variable which is the
factors that influences Consumer purchasing behaviour in FM. Extended demonstration of
data and justifications with reference to the identified framework will be presented in chapter
4.
Hypothesis 1

- H1a : Cost efficiency has a relationship with consumer purchasing behavior


in FM
- H10 : Cost efficiency has no relationship with consumer purchasing behavior
in FM

Hypothesis 2

- H2a : Information Fulfillment has a relationship with consumer purchasing


behavior in FM.
- H20 : Information Fulfillment has no relationship with consumer purchasing
behavior in FM.

Hypothesis 3

- H3a : Prior Online Shopping experience has a relationship with consumer


purchasing behavior in FM.
- H30 : Prior Online Shopping experience has no relationship with consumer
purchasing behavior in FM.

Hypothesis 4

- H4a : Consumer Trust has a relationship with consumer purchasing behavior


in FM.
- H40 : Consumer Trust has no relationship with purchasing behavior in
FM.

3.3 Operationalization  

No Variable / General Dimension Scale Question


indicator
1 Information - The clarity and the Likert Scale C1, C2, C3,
fulfillment precision of the C4, C5, C6,
information presented C7
- Information on
size, weight, colors etc are
presented
- Availability of product
comparison
2 Cost - Money back guratee Likert Scale C8, C9, C10,
- Refund policy C11, C12,
- Value added C13, C14

services/offers
- Free delivery
3 Online Experience - Accurate delivery of Likert Scale C15, C16,
orders C17, C18,
- Timely delievry of orders C19, C20,
- Product quality delivered C21

- Online presence and


positive customer
feedback

4 Consumer Trust - Positive customer Likert Scale C22, C23,


feedback C24, C25,
- Secure payment options C26, C27,
- Order tracking option C28

- Customer service quality

5 Demographics Age, Sex, Occupation, Ordinal Scale A1, A2, A3,


Income Marital status A4, A5
6 Preference for Online purchasing Ordinal Scale B1, B2, B3,
online Purchase experience, frequency of B4, B5, B6
purchases, type of products
purchased, amount spent on
online purchasing, steps
taken to conduct online
purchasing

Table 1- Operationalization

3.4 Research Design 

3.4.1 Research Sampling Design

The research is aimed to collect and analyse quantitative data in order to arrive at
conclusions. A substantial sample will be identified within the Colombo district. Data will be
gathered only through the utilization of questionnaire and a random selection of shoppers will
be selected. ANOVA (Analysis of Variance) method will be utilized to break down the
assembled information as per the factors of the calculated structure. Also, the frames of mind
of the respondents were examined utilizing a Likert Scale. Optional information will likewise
be broken down to help discoveries and will be assembled through online sources,
productions, diaries and papers. SPSS statistical software will be utilized to investigate
accumulated information and arrive at conclusions. The precision of the exploration results
will exclusively be subject to the validity in reactions of the members and an examination of
a bigger sample is an impediment of the investigation because of the examination limitations.
It's summed up that the online shoppers in Colombo district will be same as the rest of the
country online shoppers. The analyst will be the fundamental information gatherer and 3
weeks has been allotted to assemble required information. A spending limit of 30,000 will be
allotted for the information gathering necessity and logistical requirements. Online shoppers
under 18 years of age will be exempted during this investigation.
3.4.2 Population

The population of the research will be all online purchasers of FM products within 6 months
of sales.

Total
Description Jul - 19 Aug - 19 Sep - 19 Oct - 19 Nov - 19 Dec - 19
Population

Online Orders 730 624 750 800 728 920 4,552

Table 2- Population – FM

The reason for the selected number is that the researcher would like to analyze whether there
are recurring sales generated by FM, have a significant base to draw out a reasonable sample
size to arrive at proper justification. The total population taken for the research stands at 4552.
3.4.3 Sample Selection Procedure

Convenience sampling method was used for the research as participants were selected based
on their availability and their willingness to participate in the survey. However, it was made
sure that required sample is met and more than the sample number was approached due to the
above-mentioned factor. The following formula was used to select the sample size from the
population.

n =sample size

N = target population

e = margin of error

3.4.3.1 Sample Size

n = N

1+ Ne2 (Source: Taro,1967)

N=

e = 5%
n = 4552

1+ 4552 (0.05)2

N = 367.68

According to the above calculation, the sample selected for the research will be 368
customers, who will be directed a questionnaire in order to test the set criteria.

3.4.4 Data Collection Methods and Techniques Used for Research Analysis

3.4.4.1 Data Collection Methods

I was identified that many methods can be utilized to gather primary data such as Face to face
interviews, Observations, Internal reports, CRM system and Focus group discussions.
However, Primary data was gathered only using a survey questionnaire by the researcher and
will be analysed using scientific methods. The services of survey monkey were obtained to
disseminate the questionnaire and make it easy for the customers to offer feedback.
Customers were offered a free gift to reward their time for participating for the survey. A
budget of Rs. 30,000 was allocated to complete the data gathering and research completion
process.

The questionnaire consists of three main parts. Section A is aimed at capturing the
demographics of the customer while section B was designed to understand customer’s
preference for online purchasing and their frequency of purchases. Section c consists of 32
questions designed to validate the four set variables namely price, information fulfillment,
prior experience and trust and their correlation with the purchasing behaviour variable which
will be tested through 4 questions. The questionnaire is sent across to 368 customers, a
sample size arrived based on the population through a scientific calculation. Majority of the
feedback for questions are measured through Likert scale. Customers were offered a week to
complete the survey. However, due to the uniqueness of the research, there won’t be much
secondary data utilization.
3.4.4.2 Techniques Used

Data was captured mainly though the aid of a questionnaire. Secondary data was only used to
validate the website effectiveness, traffic patterns, bounce rates and preferred shopping
behaviour of the customers. SPSS statistical analysis software has been used to collate and
analyse data. Reliability test was done to validate the accuracy of the overall questionnaire as
well of all variables.

Demographic data was analysed to arrive at suggestions and draw out conclusions. Both
independent and depended variables were analysed in terms of mean, frequencies, standard
deviation. Both Anova analysis as well regression analysis was carried out using SPSS in
order to test null hypothesis as well as alternative hypothesis.

CHAPTER FOUR – DATA PRESENTATION & ANALYSIS

4.1 Introduction

In the fourth chapter, the collected data from the questionnaire will be analysed in order to
test the set hypothesis and the correlations. The survey questionnaire was hosted using the
survey monkey services. The services of the hosting costed the researcher 25 USD and the
questionnaire was hosted in tri-language mode. The selected population for the study was
4552 and a sample of 368 people were selected according to the simple random sampling
method. Apart from the general preference questions and the demographic testing, variables
were measured according to the Likert scale ranged from 1-5 scale. SPSS statistical analysis
software was used to collate and interpret the data according to various scientific methods.
Karl Pearson co-relation coefficient (p) method was used to analyse the relationships between
the variables. Microsoft Excel software has been used to collate data before it was fed to the
SPSS system for statistical analysis. Excel was further used to calculate the mean and the
median of every variable in order to cluster questions in to a variable.

The structured analysis of gathered data was presented in the chapter in line with the
established research objectives. Overall questionnaire consisted of 42 questions out of which
5 questions were used to investigate on the demographics, and 37 questions were used to test
the variables and their relationship. The questionnaire was kept open for 2 weeks and free
gifts in small nature were offered to encourage the customers to participate in the research.
Derived data through SPSS will be presented in the forms of tables and graphs in the section.
The findings of the research will be of utmost importance to FM in order to shape their
promotional activities.

4.2 Reliability Test

Reliability test can be interpreted as the measure of consistency that the researcher would like
to achieve over a period of time, if the study is repeated in the same manner conducted by the
initiating researcher. It measures consistency or the steadiness of scores. Consistency and the
Reliability were rested in line with the set variables and Cronbach Alpha was utilized to study
about the internal consistencies. According to Taber (2016) following table demonstrates the
alpha scales and their interpretation.

Table 3 - Alpha value descriptors


Source: Taber (2016)
According to numerous researchers, a Cronbach Alpha value over 0.9 or above is considered
to be excellent. The overall questionnaire recorded a Cronbach Alpha value of. 0.71 which is
considered to be “good” according to the classification of values done by Taber (2016).

Table 4.2.1 Overall Questionnaire Reliability Statistics

Table 4.2.2 Preference for online purchasing Reliability Statistics

Preference for online purchasing variable overall recorded a Cronbach Alpha value of. 0.73
which is considered to be “high” according to the classification of values done by Taber
(2016).

Table 4.2.3 Information fulfilment Reliability Statistics

Information fulfilment variable overall recorded a Cronbach Alpha value of. 0.80 which is
considered to be “robust” according to the classification of values done by Taber (2016).

Table 4.2.4 Price Reliability Statistics


Price variable overall recorded a Cronbach Alpha value of. 0.66 which is considered to be
“reasonable” according to the classification of values done by Taber (2016).

Table 4.2.5 Previous experience Reliability Statistics

Previous experience variable overall recorded a Cronbach Alpha value of. 0.57 which is
considered to be “satisfactory” according to the classification of values done by Taber
(2016).

Table 4.2.6 Trust Reliability Statistics

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items No of Items
.619 .710 38

Trust variable overall recorded a Cronbach Alpha value of. 0.61 which is considered to be
“moderate” according to the classification of values done by Taber (2016).

4.3 Demographic Data Analysis

Wide array of information was gathered when masterminding the reviews and was taken care
of to characterize the relationship between data and research. Along these lines, demographic
aspects of the respondent can be given as below.
4.3.1 Analysis of Sex

Please indicate
your Sex Frequency Percent Valid Percent Cumulative Percent
Valid male 97 26.4 26.4 26.4
female 271 73.6 73.6 100.0
Total 368 100.0 100.0

Majority of the participants were observed to be females that accounted for 73.6% of the total
respondents as well the sample. Only 26.4% of males were represented in the selected
sample. As far as interpretation of the numbers go, 97 respondents were males, whereas 271
were female.

Figure 5 Sex Breakdown


Source: Survey data, 2020

4.3.2 Analysis of age

Please Indicate Cumulative


your Age Frequency Percent Valid Percent
Percent
Valid 20-29 176 47.8 47.8 47.8
30-39 106 28.8 28.8 76.6
40-49 66 17.9 17.9 94.6
Over 50 20 5.4 5.4 100.0
Total 368 100.0 100.0

It was observed that 47.8% were considered to be at the very young age ranging from 20-29.
The number was entrusted to be 176. It was closely followed by the respondents in the 30-39
cluster with a percentage 0f 28.8% and number of respondents to be 106 to be precise. It’s
observed clearly that the least number of people were over 50 years of age who represented a
segment of 5.4% with a number of 20 people.
Figure 2 Age Breakdown
Source: Survey data, 2020

4.3.3 Marital Status

Marital Status Frequency Percent Valid Percent Cumulative Percent


Valid single 176 47.8 47.8 47.8
married 191 51.9 51.9 99.7
widowed 1 .3 .3 100.0
Total 368 100.0 100.0

The marital status almost had an equal share of distribution among the sample.
Figure 3 Marital Status
Source: Survey data, 2020

4.3.4 Occupation

What describes you


the best Frequency Percent Valid Percent Cumulative Percent
Valid Entrepreneu
52 14.1 14.1 14.1
r
Professional 211 57.3 57.3 71.5
Academic 25 6.8 6.8 78.3
Other 80 21.7 21.7 100.0
Total 368 100.0 100.0

According to the above data, it can be interpreted that most of the respondents accounting for
57.3% and a number of 211 were professionals. Second largest share was taken by the other
category with 21.7% of respondents who didn’t have the occupational category in the
presented questionnaire. Academics were the least represented occupation in the sample
group with only 25 respondents.
Figure 4 Occupation classification
Source: Survey data, 2020

4.3.5 Monthly Income

My average monthly
income Frequency Percent Valid Percent Cumulative Percent
Valid Less than 75,000 110 29.9 29.9 29.9
75,000-149,000 133 36.1 36.1 66.0
150,000-299,000 101 27.4 27.4 93.5
Over 300,000 24 6.5 6.5 100.0
Total 368 100.0 100.0

133 out of 368 respondents were earning between 75,000-149,000 monthly which was the
highest percentage of cluster in the sample group. On the other side of the scale, only 24
respondents were earning more than 300,000 which was a mere 6.5%. However, the
respondents were mostly equally distributed between the income ranges other than the
significant difference represented in the above-mentioned category. It was observed that
income is not a major differentiator for people to shop for clothing online.
Figure 5 Average monthly income
Source: Survey data, 2020

4.4 Descriptive Analysis of Independent & Dependent Variables

The following table demonstrates the analysis done on mean, Std. Deviation and frequencies
of dependent and independent variables. 4 questions were taken to measure the dependent
variable whereas 28 questions were analysed to measure the 4 independent variables
separately. Further, 6 questions were analysed to understand the purchase preferences of the
customers. The questions were measured according to the Likert scale ranging from 1-5
where 1 represented the “strongly disagree” and 5 represented “strongly agree”

Variable Mean Std. Deviation N


Consumer Purchase Bahaviour 3.8397 0.56051 368
Information Fulfillment 3.8450 0.61764 368
Price 3.6844 0.52346 368
Prior Experience 3.7368 0.58603 368
Trust 3.7263 0.61303 368
4.4.1- mean, Std. Deviation and frequencies of dependent and independent variables.

Source: Survey data, 2020

4.4.1 Analysis on Consumer Behaviour

Consumer behaviour variable as indicated below had a mean value of 3.12 with a Std.
deviation of 0.88. The mean value indicates that most of respondents agreed that there are
factors that they consider when they purchase online and the behaviour involved in such
activities. 0.88. of Std. deviation highlight the fact that most of the respondents are
homogeneous when it come to the buying behaviour and looks for certain elements when
engaged in online purchasing.

Variable Mean Std. Deviation N


Consumer Purchase Bahaviour 3.8397 0.56051 368

Table 4.2.1- mean, Std. Deviation and frequencies of consumer behaviour


Source: Survey data, 2020

Question Mean Std. Deviation N


Price is a very important factor in 3.6332 0.59853 368
making the purchase decision.
Adequate amount of information 3.9321 0.55563 368
presented about the product/service is
helpful in making the purchase
decision
Prior experience is a key factor in 3.8397 0.51554 368
arriving at the purchase decision.
I only buy products or services which 3.9538 0.57233 368
I perceive to be trust worthy

Table 4.2.1.1- mean, Std. Deviation of consumer behaviour


Source: Survey data, 2020

It’s very clear that majority of the people indicated price is a important factor in making the
purchase decision with a mean 3.63 and is very unformal across the sample with very little
standard deviation recorded at 0.60. However, it is interpreted that people rated other factors
such as the amount of information presented, prior experience and the trust is more important
than the price within the segment. That clearly defines a shift in consumer mindset in
purchasing behaviour via online sources.

4.4.2 Analysis on Information fulfillment

Information fulfillment variable as indicated below had a mean value of 3.84 with a Std.
deviation of 0.61. The mean value indicates that most of respondents agreed that there has to
be adequate information presented by the organization especially when they purchase online
as the decision mostly dependent on the amount of information presented in order for them to
make the purchase decision. 0.61 of Std. deviation highlight the fact that most of the
respondents agree homogenously that FM offers greater levels of information to the potential
customers in order to make their purchase decision.

Variable Mean Std. Deviation N


Information fulfillment 3.8450 0.61764 368

Table 4.2.2- mean, Std. Deviation of information fulfillment


Source: Survey data, 2020

Question Mean Std. Deviation N


The clarity and the precision of the
information presented in the web 3.7446 0.57179 368
matters to me.
Product selection is convinient and
3.6332 0.59853 368
joufyl
Web site presents all relevant
information and useful links which
4.1495 0.65360 368
provides maximum amount of
information.
The site uses multimedia,colorful
electronic images of products and 3.6440 0.63582 368
virtual fitons
The financial information and
personal information is not misused 4.3009 0.53982 368
or does not result in data theft
The site enables customers to check
delivery and order status of the goods 3.7092 0.64755 368
ordered by them
Web site presents all relevant
information such as contact details,
3.7337 0.67639 368
customer service details and
complain handling process

Table 4.2.2.1- mean, Std. Deviation of information fulfillment


Source: Survey data, 2020

It is evident that people highly appreciated the fact that FM Web site presents all relevant
information and useful links which provides maximum amount of information with a mean of
4.1495 and a standard deviation of 0.65. People also felt the financial information is not
misused by the organization and is kept secured from data theft represented in mean of 4.30
and in the standard deviation of 0.54. However, the organization can improve on product
selection to be joyful and in use of graphical elements in their website.

4.4.3 Analysis on Price

Price variable as indicated below had a mean value of 3.68 with a Std. deviation of 0.52. The
mean value indicates that most of respondents agreed that they consider price as a critical
factor when they purchase online and make the decision. 0.52 of Std. deviation highlight the
fact that most of the respondents agree homogenously that the importance of price exists
important across the sample.

Variable Mean Std. Deviation N


Price 3.6844 0.52346 368

Table 4.2.3- mean, Std. Deviation of price


Source: Survey data, 2020
Table 4.2.3.1- mean, Std. Deviation of information fulfillment
Source: Survey data, 2020

People agree that a money back guarantee is offered by the company. However, it’s evident
from the mean that everyone is not aware of the benefit offered by FM. Most of the people
are neutral when it comes to the refund policy of the goods if not delivered on time, is
incorrect or in bad order. However, it’s justified that people always tend to shop when free
giveaways and discounts are offered which had 4.00 of mean with standard deviation of 0.57
and 4.04 of mean with standard deviation of 0.34778 respectively.

4.4.4 Analysis on Prior Experience

Prior Experience variable as indicated below had a mean value of 3.73 with a Std. deviation
of 0.59. The mean value indicates that most of respondents agreed that prior experience that
they hold is a critical factor to arrive at the purchasing decision. 0.58 of Std. deviation
highlight the fact that most of the respondents agree homogenously that the importance of
prior experience exists important across the sample.

Variable Mean Std. Deviation N


Price 3.7368 0.58603 368

Table 4.2.4- mean, Std. Deviation of prior experience


Source: Survey data, 2020
Question Mean Std. Deviation N
Real product displayed are delivered 4.0408 0.34778 368
Disclosure of all relevant information
3.6250 0.63127 368
pertaining to the product
Orders are delivered in mint
4.0652 0.43809 368
condition and is on time
Posses good reviews and been in the
3.8696 0.53167 368
business for sometime
Simple ordering process. 3.7720 0.56548 368
Easy payment methods/schemes
3.7446 0.61761 368
available
Product images provided offers a
3.8723 0.59745 368
clear idea about the actual product

Table 4.2.4.1- mean, Std. Deviation of information fulfillment


Source: Survey data, 2020

People strongly agree that a real product displayed are delivered by the company with a mean
of 4.0408 and 0.34778 of standard deviation. Respondents agree that orders are delivered in
mint condition and is on time with a strong mean of 4.0652 and standard deviation of
0.43809. However, people perceive that all relevant information pertaining to the product is
not displayed as it indicates the lowest mean among the cluster with 3.62 and standard
deviation of 0.63.

4.4.5 Analysis on Trust

Trust variable as indicated below had a mean value of 3.73 with a Std. deviation of 0.61. The
mean value indicates that most of respondents agreed that trust that they hold is a critical
factor to arrive at the purchasing decision. 0.61 of Std. deviation highlight the fact that most
of the respondents agree homogenously that the importance of trust exists important across
the sample.

Variable Mean Std. Deviation N


Price 3.7263 0.61303 368

Table 4.2.5- mean, Std. Deviation of trust


Source: Survey data, 2020
Question Mean Std. Deviation N
Website conducts transaction through
3.8315 0.51557 368
secure pyment gateways.
Order confirmation is sent upon
3.6413 0.61465 368
duduction payment
Sends out information when orders
3.5842 0.62506 368
are dispatched with tracking options.
Provides capability to get in tough
3.8424 0.50840 368
with help minimum fuss
Information is not sold for third
3.6413 0.62346 368
parties for commercial purposes
Better product return services 3.8668 0.52842 368
After sales/support staff is freindely
3.9321 0.55563 368
and attentive

Table 4.2.5.1- mean, Std. Deviation of information fulfillment


Source: Survey data, 2020

People agree that a website conducts transaction through secure payment gateways with a
mean of 3.8315 and 0.51557 of standard deviation. Respondents mostly holds a neutral
perception that Sends out information when orders are dispatched with tracking options with
a mean of 3.58 and standard deviation of 0.62. It’s evident that the organization can improve
significantly on trust factor.

4.5 Hypothesis Analysis

Null hypothesis and alternative hypothesis were tested based on the statistical output of
SPSS.

4.5.1 Analysis of Hypothesis 1 (H1o & H1a)

Core-relation testing between the Cost efficiency and the consumer purchasing behavior in
FM is the first tested hypothesis. Identified relationships are demonstrated in below table.
Hypothesis 1

- H1a : Cost efficiency has a relationship with consumer purchasing behavior


in FM
- H10 : Cost efficiency has no relationship with consumer purchasing behavior
in FM

Correlations
Trust Price Factor
Trust Pearson Correlation 1 .263**
Sig. (2-tailed) .000
N 368 368
Price_factor Pearson Correlation .263** 1
Sig. (2-tailed) .000
N 368 368
**. Correlation is significant at the 0.01 level (2-tailed)

According to the above table P value is indicated at 0.00. which is less than the 0.05. This
indicates there is a strong significant relationship between information fulfillment and
consumer purchasing behavior in FM. Hence, null hypothesis can be rejected.

Figure 4.3.1 Scatter diagram between cost efficiency and buyer behaviour
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .275a .076 .073 1.01628
a. Predictors: (Constant), Price_factor

According to Rumsey (2012) +0.70. indicates a strong positive linear relationship and the .
076 R Square value is reached for the link between cost efficiency and buyer behaviour.

ANOVAa
Sum of
Model df Mean Square F Sig.
Squares
1 Regression 30.915 1 30.915 29.932 .000b
Residual 378.017 366 1.033
Total 408.932 367
a. Dependent Variable: Buyer Behaviour
b. Predictors: (Constant), Price_factor

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
1 (Constant) 12.004 .616 19.489 .000
Price_factor .143 .026 .275 5.471 .000
a. Dependent Variable: Buyer Behaviour

4.5.2 Analysis of Hypothesis 2 (H2o & H2a)

Core-relation testing between the information fulfillment and the consumer purchasing
behavior in FM is the second tested hypothesis. Identified relationships are demonstrated in
below table.
Hypothesis 2

- H2a : Information Fulfillment has a relationship with consumer purchasing


behavior in FM.
- H20 : Information Fulfillment has no relationship with consumer purchasing
behavior in FM.

Correlations
Trust Information Fulfillment
Trust Pearson Correlation 1 .152**
Sig. (2-tailed) .003
N 368 368
Information Pearson Correlation .152** 1
Fulfillment Sig. (2-tailed) .003
N 368 368
**. Correlation is significant at the 0.01 level (2-tailed).

According to the above table P value is indicated at 0.03. which is less than the 0.05. This
indicates there is a significant relationship between information fulfillment and consumer
purchasing behavior in FM. Hence, null hypothesis can be rejected.

Figure 4.3.2 Scatter diagram between information fulfillment and buyer behaviour
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .269a .072 .070 1.01806
a. Predictors: (Constant), Information Fulfillment

According to Rumsey (2012) +0.70. indicates a strong positive linear relationship and the .
072 R Square value is reached for the link between information fulfillment and buyer
behaviour.

ANOVAa
Sum of
Model df Mean Square F Sig.
Squares
1 Regression 29.596 1 29.596 28.555 .000b
Residual 379.336 366 1.036
Total 408.932 367
a. Dependent Variable: Buyer Behaviour
b. Predictors: (Constant), Information Fulfillment

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
1 (Constant) 11.362 .750 15.142 .000
Information
.149 .028 .269 5.344 .000
Fulfillment
a. Dependent Variable: Buyer Behaviour

4.5.3 Analysis of Hypothesis 3 (H3o & H3a)

Core-relation testing between the Prior Online Shopping experience and the consumer
purchasing behavior in FM is the third tested hypothesis. Identified relationships are
demonstrated in below table.
Hypothesis 3

- H3a : Prior Online Shopping experience has a relationship with consumer


purchasing behavior in FM.
- H30 : Prior Online Shopping experience has no relationship with consumer
purchasing behavior in FM.

Correlations
Trust Experience Factor
Trust Pearson Correlation 1 .276**
Sig. (2-tailed) .000
N 368 368
Experience Pearson Correlation .276** 1
factor Sig. (2-tailed) .000
N 368 368
**. Correlation is significant at the 0.01 level (2-tailed).

According to the above table P value is indicated at 0.00. which is less than the 0.05. This
indicates there is a significant relationship between prior shopping experience and consumer
purchasing behavior in FM. Hence, null hypothesis can be rejected.
Figure 4.3.2 Scatter diagram between prior shopping experience and buyer behaviour
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .201a .040 .038 1.03554
a. Predictors: (Constant), Experience factor

According to Rumsey (2012) +0.30. indicates a weak positive linear relationship and the .040
R Square value is reached for the link between prior shopping experience and buyer
behaviour.

ANOVAa
Sum of
Model df Mean Square F Sig.
Squares
1 Regression 16.452 1 16.452 15.342 .000b
Residual 392.480 366 1.072
Total 408.932 367
a. Dependent Variable: Buyer Behaviour
b. Predictors: (Constant), Experience factor

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
1 (Constant) 11.413 1.010 11.305 .000
Experience
.147 .038 .201 3.917 .000
factor
a. Dependent Variable: Buyer Behaviour

4.5.4 Analysis of Hypothesis 4 (H4o & H4a)

Core-relation testing between the trust and the consumer purchasing behavior in FM is the
fourth tested hypothesis. Identified relationships are demonstrated in below table.
Hypothesis 4

- H4a : Consumer Trust has a relationship with consumer purchasing behavior


in FM.
- H40 : Consumer Trust has no relationship with purchasing behavior in
FM.

Correlations
Trust Information Fulfillment
Trust Pearson Correlation 1 .152**
Sig. (2-tailed) .003
N 368 368
Information Pearson Correlation .152** 1
Fulfillment Sig. (2-tailed) .003
N 368 368
**. Correlation is significant at the 0.01 level (2-tailed).

According to the above table P value is indicated at 0.03. which is less than the 0.05. This
indicates there is a significant relationship between trust and consumer purchasing behavior
in FM. Hence, null hypothesis can be rejected.

Figure 4.3.2 Scatter diagram between prior shopping experience and buyer behaviour
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .243a .059 .056 1.02544
a. Predictors: (Constant), Trust

According to Rumsey (2012) +0.50. indicates a moderate positive linear relationship and the .
059 R Square value is reached for the link between trust and buyer behaviour.

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 24.077 1 24.077 22.897 .000b
Residual 384.855 366 1.052
Total 408.932 367
a. Dependent Variable: Buyer Behaviour
b. Predictors: (Constant), Trust

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
1 (Constant) 11.202 .871 12.865 .000
Trust .189 .039 .243 4.785 .000
a. Dependent Variable: Buyer Behaviour

4.5.5 Summary of the Hypothesis Test Results


Alternative Null
Relationshi Correlation
Hypothesis H# Hypothesis Hypothesis
p Coefficient
#a #0

Impact of information Strong


fulfillment on buyer H1 Accepted Rejected Positive rs=-.269
behaviour Relationship

Strong
Impact of price on
H2 Accepted Rejected Positive rs=-.275
buyer behaviour
Relationship

Impact of prior Weak


experience on buyer H3 Accepted Rejected Positive rs=-.201
behaviour Relationship

Moderate
Impact of trust on
H4 Accepted Rejected Positive rs=-.243
buyer behaviour
Relationship

CHAPTER FIVE – CONCLUSIONS & RECOMMENDATIONS


5.1 Study Summary

The aim of this research is to examine the factors influencing consumer buying behaviour of
digital marketing in FM”. Even through the organization is currently practicing Digital
Marketing, no through investigation had been carried out to identify the effectiveness and its
impact on the purchasing decision of the consumers. Main research question addressed by the
analysis is on What is digital marketing and does it have a positive influence on the buyer
behavior of FM. According to the research question, main objectives were established to
examine how Cost efficiency, Information Fulfillment, Prior Online Shopping Experience
and Consumer Trust influence on consumer purchasing behavior in digital marketing of FM.
According to the identified variables, primary information was gathered through a
questionnaire. Independent variables were set based on the contributing factors for online
purchases and the dependent variable was identified as buying behaviour.

According to the analysed data majority of the respondents present in sample was females
(271 respondents at 73.6%) Males had a minority participation (97 respondents at 26.4)
based on the simple random sample selected according to the sampling methodology. It was
observed that 47.8% were considered to be at the very young age ranging from 20-29. The
number was entrusted to be 176. It was closely followed by the respondents in the 30-39
cluster with a percentage of 28.8% and number of respondents to be 106 to be precise. It’s
observed clearly that the least number of people were over 50 years of age who represented
a segment of 5.4% with a number of 20 people. Most of the respondents accounting for
57.3% and a number of 211 were professionals. Second largest share was taken by the other
category with 21.7% of respondents who didn’t have the occupational category in the
presented questionnaire. Academics were the least represented occupation in the sample
group with only 25 respondents. 133 out of 368 respondents were earning between 75,000-
149,000 monthly which was the highest percentage of cluster in the sample group. On the
other side of the scale, only 24 respondents were earning more than 300,000 which was a
mere 6.5%.

However, the respondents were mostly equally distributed between the income ranges other
than the significant difference represented in the above-mentioned category. It was observed
that income is not a major differentiator for people to shop for clothing online.
5.2 Conclusion

5.2.1 Impact of Information Fulfillment on Buyer Behaviour

There has been a strong significant relationship between information fulfillment and
consumer purchasing behavior in FM. It can be concluded that information fulfillment as
identified in the problem statement in chapter 1 is a critical factor that contributes to the
purchasing decision of the consumers. Once the consumer identifies the problem that he has
with him, he will start to search information regarding his target product. Hence the success
of the Pre-purchase search is a key determinant for organizations to concentrate on and a
significant step to be triumphed.

5.2.2 Impact of Price on Buyer Behaviour

There has been a strong significant relationship identified between price and consumer
purchasing behavior in FM. the consumers view of cost clarifies many aspects about a
product according to their purview and gives a profound significance to the shoppers.
Subsequently, cost is a key determinant of the frequently purchased goods thusly, impacts the
decisions of which brand, store or item to belittle.

5.2.3 Impact of Prior online shopping experience on Buyer Behaviour

Impact of Prior experience has a weak positive relationship on buyer behaviour. Using the
online data may inspire impression of vulnerability and unpredictability for an Internet
tenderfoot. Interestingly. internet experience may direct the evaluation of online data.
Consequently, customers with more web shopping background will utilize the web as their
essential data source and furthermore bound to have a more noteworthy certainty on the web.

5.2.4 Impact of trust shopping experience on Buyer Behaviour

Trust has a moderate positive relationship on consumer purchasing behaviour. When it comes
to making a purchasing decision, perceived risk is always involved in buying behavior.
Consumers are more concerned in reducing the risk of uncertainty rather than the
consequences that may arise mainly because consumers can hardly change unfavourable
consequences of their purchasing decisions though they can reduce the level of uncertainty.
For case in point, consumers depend on brand loyalty or purchase recognized brands to
reduce uncertainty.

5.3 Recommendations

It’s recommended for the organization to work on improving some of the key elements such
as the enjoyment element involved in selecting the products since it’s the least rated variable
in the information fulfillment cluster. Another element for FM to work on is the use of
colourful multimedia elements with real like virtual fit on element. This is a critical factor in
online fashion purchasing since the customer is offered none at all tangible experience before
the purchase decision is made. However, price is the variable that recorded the lowest
overall rating out of the variables tested. This indicates a shift in customer mindset who
values a company who delivers as promised, is upfront on all dealings which can create an
everlasting relationship. Customers indicated that they are always having a preference to
shop when discounts are provided and free giveaways are present. This can be a way to
attract customers as well as a demeaning factor.

Company has to plan their marketing campaigns preciously with correct costing to
accommodate the preferences and at the same time how they can change the mindset to look
for value addition by concentrating on the same. Customers availed the fact that real products
are delivered as displayed, orders are delivered in mint condition and is on time and Posses
good reviews and been in the business for some time. At the same time customers feel that
company can do better in disclosing of all relevant information pertaining to the product.
However, the customers are not feeling fully secured on information is not sold for third
parties for commercial purposes.

This can be one of the threatening factors to the organization when additional information is
seeked from the customers to run advanced analytics to promote products and services in the
future. Hence, FM has to reinforce the trust element that the information is not disclosed to
third parties on commercial viability.
5.4 Suggestion for Further Research

As any other researchers conducted, the study is comprised of unaddressed areas. The
research was only limited to gather information in Colombo district due to limited resource
availability. It was perceived that the information gathered represents the perception and the
factors that influence online purchasing on FM across the country as well as overseas
customers. Hence if FM wants to gather insights of the digital marketing efforts success in
relation to different geographical locations and cultures, it has to be researched further in
order to identify how the factors could vary depending on the cultural, societal and
geographical elements in both local and other significant markets that the organization
attracts customers from. Further only questionnaires were used to gather relevant data and
other mechanisms such as face to face interactions, focus group discussions, etc.… were
never used. Hence the accuracy of the final outcome would solely depend on the
trustworthiness of the respondents.
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APPENDIX

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