Kingdom of Cambodia

National Religion King

Royal University of Phnom Penh

Faculty of Social Science and Humanities
International Business Management Department
Quantitative Research

Key Factors Affecting Consumer Purchase Motivation in

Online Shopping Context

Group 1

Sorn Daniel
Drum Dane
Hann Orvatey
Seng Roma
Tak Bunleang
Soeun Seakphalsanouk

Lecturer: Mr. Saut Moeun

Semester 1, 2021
 TABLE OF CONTENTS
TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

CHAPTER ONE INTRODUCTION

1.1 Background of Study

1.2 Problem statement

1.3 Research Objectives and Questions

1.4 Research Scope and Limitations

1.5 Research Contribution

1.6 Definition of Key Terms

1.7 Research Structure

CHAPTER TWO LITERATURE REVIEW

2.1 Theoretical Foundation

2.1.1 Information Satisfaction

2.1.2 Consumer Purchase Behavior

2.1.3 Five Stages Model of Buying Process

2.1.4 Security Perception

2.1.5 The relationship between information quality and consumer purchase

motivation

2.1.6 The relationship between purchasing convenience and consumer purchase

motivation

2.1.7 The relationship between security perception and consumer purchase

motivation
2.2 Hypothesis Development

2.3 Conceptual Framework

 Chapter One

Introduction

1.1 Background of Study

These days, online buying is a rapidly expanding phenomenon. A growing

number of consumers shop online to buy goods and services, get product information, or

simply to find enjoyment. As a corollary, online shopping environments are increasingly

playing a part in the whole connection between marketers and their customers (Koo et al.,

2008). According to a ClickZ Stats survey (n.d.), the number of Internet users globally is

predicted to reach 1.8 billion by 2010 since the Internet has now become a genuinely

global phenomenon, (as cited in Kotler & Armstrong, 2008). Due to the obvious growing

and diversified number of internet users, people with a wide range of interests and goals

are increasingly turning to the Web for information and to purchase goods and

services. Consumers can use the Internet-based electronic commerce environment to

search for information and buy products or services directly from the online store. (Lohse

and Spiller, 1998; Kolesar and Galbraith, 2000) that is, consumer purchases are primarily

dependent on the product's look on the internet, such as photos, images, quality

information, and video clips, rather than on the product's actual experience. Online

Shopping is similar to shopping in a paper catalog as you are unable to physically

experience the products only get notified by virtual communication means whether the

delivery is being handled properly to you or not even after you make the purchase

(Spiller & Lohse, 1997). Thus, user interfaces and how consumers interact with

computers play a large role in the promise of electronic commerce and online buying
(Hoque and Lohse, 1999; Griffith et al., 2001). Furthermore, in an interactive shopping

medium, the qualities of information presentation, navigation, and order fulfillment are

considered a more crucial component in establishing electronic commerce trust than any

other factor.

Other Asian nations, such as Malaysia, are experiencing rapid development in

internet shopping. According to a Nielsen Company survey commissioned by PayPal,

Malaysians spent RM 1.8 billion on online buying in 2011 and this amount is predicted to

nearly treble in three years. On the other hand, there appears to be a sizable percentage of

internet users who use the Internet for other purposes, such as checking email.

1.2 Problem Statement

There were 4.66 billion active internet users globally in January 2021, accounting

for 59.5 percent of the world population. 92.6 percent (4.32 billion) of this total used

mobile devices to access the internet (Johnson, 2021). However, in 2021, 2.14 billion

people globally are estimated to buy products and services online, rise from 1.66 billion

global online buyers in 2016 (Coppola, 2021). Though the number of the internet is

tremendous, yet online shoppers are not increasing as much the users of internet. There

might have some causes. Communications of normal day-to-day shopping are basically

face-to-face interactions between clients and service personnel whereas interactions in e-

commerce are primarily through the retailer's Web site. According to the findings of an

online survey of 602 Korean customers who have made purchases books online;

information quality, user interface quality, and security perceptions affect information

satisfaction and relational benefit, which are responsible to consumer motivation on

making purchase decisions (Park & Kim, 2003). Furthermore, according to Karim

(2013), over three quarters of the respondents use internet every day, but most of them do

not use internet to buy products for daily usage, and they only use it when it has no other

choices.

According to a Neilson survey conducted in Malaysia (2011), security concerns

are front of mind for online buyers, with seven out of ten eager to spend more online

provided security measures are improved. With the goal of establishing online trust and

controlling the hazards of online transactions, the most significant obstacles for online

purchasing intention have been recognized as the inability to increase online purchases.

Security, authentication, fraud, and the danger of loss are also acknowledged to be major

problems (Rao, 2002). Consumers believe that internet purchasing is riskier than

shopping in person, which delivers the same level of happiness. A type of physical

transaction in which a buyer may view, feel, and touch things before making a purchase

(Heijden et al., 2003).

1.3 Research Aim, Objectives, and Questions

Based on the above research background and statement of problem, this research is

conducted for three objectives to match with the aim.

 Aim: to discover important factors affecting consumers’ online purchase

motivation.

 Objectives: to accomplished the aim the following four objectives are offered:

1. To discover factors that encourage consumers to purchase online.

2. To explore customers' level of satisfaction after making purchases.

3. To find out the effects of consumers’ purchase satisfaction on e-commerce

  Research Questions: to succeed the above-mentioned research objectives, three

research questions upraised to better understand the theoretical and practical

issues listed as the following:

1. What are the factors convincing consumers to purchase online?

2. What are the level of customers’ satisfaction after making purchases?

3. What are the effects of consumers’ purchase satisfaction on e-commerce?

1.4 Research Scope and Limitations

Items Scope of Study

Type of research Quantitative

Key issues Factors influencing motivation of consumers to purchase online

Information quality, purchasing convenience, and security

Independent variable perception

Dependent variable Consumer motivation and online purchase

Theory of user information satisfaction, consumer purchase

Underlying theory behavior, Five stage model of the buying process

Location Seoul, Wrexham area

602 Korean bookstore membership customers, people who live in

Sample Wrexham area

Time frame

Research instrument Structured questionnaire, closed-ended questionnaire

1.5 Research Contribution

This paper presents experimental support for consumer behaviors in the context of

website online shopping. In order to clarify consumers' positive responses to online

shopping services, we modify the theory that demonstrates on how satisfied the users are

when it comes to information as well as how consumers behave when purchasing goods

to indicate factors that impact their purchasing attitude and satisfaction, also we

researched on the influences of product and service information user interface

performance over consumers’ commitment towards online store shopping.

1.6 Definition of Key Terms

Terms Conceptualization Operationalization

Consumer motivation Consumer motivation is a The positive response of consumers

psychological state that encourages
individuals to pursue and purchase
products or services that satisfy
both conscious and unconscious
needs or desires.
towards online shopping that they find
satisfactory to their demands in case of
information, security, product, and
service quality allowing them to make
purchases electronically.

Information Quality is defined by The wellness of information performance

how valuable the content is to users
in fulfilling ones' subjective
Information quality
comprehension within the standard
measure of correctness, sufficiency,
constant, and renewables.
through the interface, product
presentation, and customer service on
online stores that consumers experience
and find them trustworthy to make
purchase decisions

Motivation is the degree to which motivation can be defined as the inner

Motivation you make decisions regarding (a) force that drives individuals to
goals to pursue and (b) the amount accomplish personal and organizational
of work you will put into that goals.
pursuit.

security perception Security perception is defined as the Customer objective relates to security
degree to which person believes policy statements and technological
that the online vendor or website is protection, whereas subjective security
 secure. refers to overall security perception.

1.7 Research Structure

This study is organized into five classification junctions, which are divided into

five different chapters, as depicted in Figure 1.1.

 Chapter 1 focuses on the research's background study, as well as the problem

statement. This specific chapter additionally defines the study's objective and

significant research questions.

 Chapter 2 outlines the existing literature, theories, and model, as well as possible

practical concepts relevant to the study.

 Chapter 3 explicates the complete research process, including the research design,

data gathering procedure, data analysis, and time frame.

 Chapter analyses the research findings gleaned through data collecting and

provided detailed information.

 Chapter 5 detailed the study's analysis, which severely addresses fundamental

research questions as a result of the final result and literature review. Furthermore,

it expresses the final idea and thus a recommendation for additional research.
 Introduction to Research

Literature Review

Research Methodology

Finding

Discussion, Conclusion, and Implications

Figure 1.1 Research Flowchart

 Chapter Two

Literature Review

2.1 Theoretical Foundation

2.1.1 Information Satisfaction

Consumer satisfaction or dissatisfaction with an overall information service

encounter (Crosby and Stephens, 1987) – that is, navigating through Web pages and

contents in an online service context – is referred to as information satisfaction. It differs

from overall satisfaction, which refers to a consumer's overall evaluation of a company

based on all interactions and experiences with that company (Jones & Suh, 2000). In this

study, we defined information satisfaction as "an emotional reaction to the overall

information service experience" (adapted from Westbrook, 1983).

(DeLone and McLean, 1992; Wang and Strong, 1996) according to the literature

on information systems, information quality and user interface quality are thought to

influence user information satisfaction. The online store's information is divided into two

categories: product information and service information. Product information can include

product attributes, consumer recommendations, evaluation reports, and so on. Most

online stores provide service information such as membership information, FAQs,

information relating to orders and delivery as well as sales announcements.

2.1.2 Consumer Purchase Behavior

 Consumers engage in relational behaviors to improve decision-making efficiency,

reduce information processing, achieve greater cognitive consistency in their decisions,

and reduce the perceived risks associated with future choices (Sheth & Parvatiyar, 1995).

A consumer begins to trust a service provider or supplier after a few successful

transactions (Ravald & Gro nroos, 1996). When customers trust a company, they know

that it can meet their needs and desires, and they eventually become committed to the

company.

As a result, the debate about the major aspects in consumer purchase behavior in

an e- commerce environment must center on information availability (Wolfinbarger &

Gilly, 2001). Information accessibility takes into account not only information on

products and services, but also comfortability and customization in order to retain

customers. It is determined by the extent to which consumers can use information to

predict their likelihood of satisfaction with subsequent purchases. As a result, the ability

of online shops to customize their information to satisfy the needs of their customers will

determine their success. However, several factors influence the predictive value of the

information, and no one type of information is universally represented by all consumers

(Kolesar & Galbraith, 2000).

2.1.3 Five stages model of the buying process

A consumer goes through five different stages before purchasing goods or

services (Kotler & Keller, 2009). However, not every buying decision of the costumer is

always made, it is mostly made for valuable decision or important things only. For

example, if customers purchase basic needs such food or clothes, they do not go through

all the stages. Thus, it affects purchase decision and motivation of customer. The five
stages (Figure 2.1) are problem recognition, information search, evaluation of

alternatives, purchase decision, and purchase behavior (Kotler & Keller, 2019).

Five stage model of the buying process

Evaluation
Proble Informatio Purchase Purchase
of
m n Search Decision Behavior
Alternatives

Source: Kotler & Keller (2009)

Figure 2.1 Five Stages model of buying process

2.1.4 Security perception

The degree to which a person feels that an online vendor or website is secure is

characterized as security perception. It's a significant problem when it comes to sending

sensitive information like credit card numbers (Salisbury, 2001). There are objective and

subjective security difficulties when it comes to security perception. Customer objective

relates to things like security policy statements and technological protection, whereas

subjective security pertains to how safe you think you are (Chellappa and Pavlou, 2002).

Chang and Chen (2008) state that because the Internet is not a secure environment for

online commerce, online websites must use and consider security to protect their clients'

data. They also state that online websites are the primary target of attackers.

2.1.5 The relationship between information quality and consumer purchase

motivation

To evaluate how information quality positively influences the motivation of

consumers to buy online. We incorporated six information attributes from user

information satisfaction research. Relevance, sufficiency, playfulness, consistency, and

understandability are some of them (DeLone & McLean, 1992; Wang & Strong, 1996;

Moon & Kim, 2001). Customer service and product search should be aided by the

information provided by online stores. Such data should be effective in predicting a

product's or service's quality and functionality (Wolfinbarger & Gilly, 2001). To serve

the interest of consumers, such information ought to be current in terms of presenting

products and services, sufficient to assist consumers in making a decision, consistent in

terms of revealing and formatting the message, and simple to fully comprehend (Wang

and Strong, 1996; Zhang et al., 2000). Enjoyment, entertainment, and humor are

important aspects of developing one's attitude and behavioral intention toward a site

(Agarwal & Karahanna, 2000; Moon & Kim, 2001). As a result, playfulness is an

important factor in Web-based information presentation. (Spiller and Lohse, 1997;

Szymanski and Hise, 2000) the quality of a user interface is linked to the system layout,

navigation sequence, and ease of searching for a product or information, or simply

surfing the web. Because inadequate ecommerce website development can have a

negative impact on purchasing transactions, it is critical to understand the impacts of

multiple layouts, as well as organizational, browsing, and navigation features, on

consumer purchase behavior (Lohse & Spiller, 1998). Online stores make it easier for

customers to navigate by including functions like search functions, guided navigation,

and site maps.

2.1.6 The relationship between purchasing convenience and consumer

purchase motivation
 According to Gay et al. (2007), Yun and Good (2007), Lee and Lin (2005),

Rajamma et al. (2007) , Kim and Kim (2004) , Ramus and Nielsen (2005) , Ladson and

Fraunholz (2005), Kramarae and Kramer (1995), Welch (1995), Rathmell et al. (1998),

Johnstone (1999), Singh (2004), Smith & Chaffey (2002), and Canavan et al. (2007),:

Convenience is one factor among other factor that affects consumer satisfaction and

purchase decision on online shopping (as cited in Karim, 2013). According to Jiang et al.

(2012), convenience is offered in five dimensions such as access convenience, search

convenience, evaluation convenience, transaction convenience, and possession or post-

purchase convenience. Convenience is assumed to have a positive effect on purchase

motivation or repurchasing behavior. Furthermore, the evolution of the information

economy has recently compelled e-commerce enterprises (a type of knowledge heavy

business) to place a greater emphasis on innovation capability. As a result, recent

research of Yu et al. (2017), Wu et al. (2017), and Ahn and Kim (2017) attempted to

investigate the relationship between innovation and firm competitiveness, particularly in

the e-commerce arena. According to the findings of Ahn and Kim (2017), the relational

and cognitive elements of social capital are essential mediators in achieving

organizational innovation performance. These studies demonstrated the significance of

innovative solutions for generating convenient processes, emphasizing perceived value,

attracting more consumers, and, lastly, ensuring client retention.

2.1.7 The relationship between security perception and consumer purchase

motivation

Security is viewed as a factor that influences online buying intent. Attitude toward

security, familiarity with security features, website features, and the display of a third-
party security seal are all elements that impact security perception, ( Sharma and Yurcik,

2004). They proposed that security issues, including trust, be investigated as a customer

perception issue. According to Furnell (2004), displaying policy statements and

displaying third-party seals such as Verisign on a website are useful variables in

influencing customer perceptions of security. Customers' impression of online vendor

security is identified as a prominent worry of decision making by consumers in another

study by Tsai and Yeh (2010). They discovered that website design (features), efficiency,

service quality, product quality, information, and transaction and delivery capacity are all

connected to the perceived risk of information security and buy intent.

2.2 Hypothesis Development

The finding of the study (Zhang et al., 2000) found that the quality of information

along with its various considered aspects has a direct effect on consumer purchase

motivation. Therefore, hypothesis 1 is stated as follows:

H1 = Information quality has a positive effect on consumer purchase motivation in online

shopping.

According to karim (2013), a large percentage of consumers continue to buy their

stuff online since online shopping motivates them to do so and they believe it is more

convenient for them, where the term convenient measured the following variables: time

saving, information availability, opening time, less expensive, less stress, best offers,

helpful for old and disable people, service quality, easy navigation, easy ordering system,

and shopping fun. As a result, hypothesis 2 was proposed:

H2 = Purchasing convenience has a positive effect on consumer purchase motivation in

online shopping.
 The finding of the study (Belanger et al., 2002; Park and Kim, 2003 and

Delafrooz et al., 2011) found that the security perception along with its various

considered aspects has a direct effect on consumer purchase motivation. Thus, hypothesis

3 is stated as follows:

H3 = Security perception positively influences consumer purchase motivation in online

shopping.

2.3 Conceptual Framework

In the involvement of the above-mentioned literature review and hypothesis

development, the current study was able to develop a conceptual framework in addition

to the hypothesis. As the study's goal was to investigate the influential factors of

consumer purchase motivation, three hypotheses were developed to examine relationship

factors of online consumption motivation in the depicted figure 2.2.

Information Quality
H

H1

Purchasing Convenience Consumer Online

Purchase Motivation
H2
H
Security Perception H3

Figure 2.2 Conceptual Framework

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