MGNM832 Academic Task - 1

“Factors that Influences the consumer’s purchase intention

when using online stores”
SUBMITTED TO:
TANYA NAGPAL

STUDENT NAME REGISTRATION NO.

VISHVJEET SINGH PANWAR 12114157
JAGRATI UPADHYAYA 12114222
AMANDEEP SHARMA 12112180
NIKHIL SINGH 12111923
RITIKA SINGH 12112417

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 TABLE OF CONTENTS

TABLE OF CONTENTS ..................................................................................................................... 2

1.0 Abstract .................................................................................................................................... 4
2.0 Background................................................................................................................................... 4
2.1 Problem Definition .................................................................................................................. 5
2.2 Research Questions ............................................................................................................... 5
2.3 Research Objectives............................................................................................................... 6
3.0 Literature Review......................................................................................................................... 6
3.1 Introduction............................................................................................................................... 6
3.1.1 Purchase Intention........................................................................................................... 7
3.2 Influencing Factors ................................................................................................................. 8
3.2.1 Quality ................................................................................................................................. 8
3.2.3 Online Trust ..................................................................................................................... 10
3.2.4 Website Presentation .................................................................................................... 12
3.3 Hypothesis Formulation ...................................................................................................... 12
3.4 Conceptual Framework ........................................................................................................ 12
4.0 Research Methodology ............................................................................................................ 13
4.1 Deciding the subject of Research ..................................................................................... 13
4.2 Framing appropriate questionnaires................................................................................ 13
4.3 Space boundaries ................................................................................................................. 14
4.4 Types of data sources .......................................................................................................... 14
4.5 Data collection method ........................................................................................................ 15
4.6 Sampling decisions .............................................................................................................. 16
5.0 Data Analysis.............................................................................................................................. 16
5.1 Descriptive Analysis ................................................................................................................. 17
5.1.1 Respondent’s Demographic Profile .............................................................................. 17
5.1.1.1 Gender ........................................................................................................................... 17
5.1.1.2 Age.................................................................................................................................. 18
5.1.1.3 Ethnicity ........................................................................................................................ 19
5.1.1.4 Monthly Household Income ..................................................................................... 20
5.1.1.5 Education ...................................................................................................................... 21
5.1.1.6 Employment Status .................................................................................................... 22
5.1.2 Respondent General Information .................................................................................. 22
5.1.2.1 When you hear the word ‘online shopping’, does Zalora come to mind? ... 22

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 5.1.2.2 Have you ever been to online shopping websites?........................................... 23
5.1.2.3 With the new promotion and advertisement about online shopping, has
your numbers of visits increased?...................................................................................... 24
5.1.2.4 How often do you shop online? .............................................................................. 25
5.2 Scale Measurement............................................................................................................... 26
5.2.1 Reliability Analysis ........................................................................................................ 26
5.3 Inferential Analysis ............................................................................................................... 27
5.3.1 Pearson’s Correlation Analysis.................................................................................. 27
5.3.2 Multiple Regression Analysis ..................................................................................... 28
5.4 Hypothesis Testing ............................................................................................................... 30
6.0 Discussions of Major Findings .............................................................................................. 31
7.0 Conclusion and Recommendation ....................................................................................... 32
8.0 Limitations................................................................................................................................... 32
9.0 References .................................................................................................................................. 33

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1.0 Abstract
The purpose of this research aims to find out the factors that influence consumers’

purchase intention towards online shopping. To be able to collect data, an online

survey was distributed to a total of 315 people. The data were then keyed into a

software program, SPSS version 21 and the results were analysed using descriptive

and inferential analysis. The results we acquired indicated that all of our three

independent variables, which are quality, online trust and website presentation, have

a significant influence on consumers’ purchase intention towards online shopping.

Keywords: purchase intention, online shopping, SPSS, quality, online trust, website

presentation.

2.0 Background
Online shopping is a process whereby customers use internet to purchase and

review any product or services. Online shopping consists of an e-store, e-shop, web-

shop, online store, web-store or virtual store that enables a consumer to have a

physical view of a products or services like brick and mortar retailer which is also a

traditional method of shopping and shopping outlets. Mail order catalogues with

analogy are the metaphor of an online catalogue. All type of store has retail websites

including some which does not have physical storefronts and paper catalogues.

Online shopping is a type of electronic commerce used for business to consumer

and business to business transactions. Since around 1990 online shopping has

become a lifestyle of the way people purchase services and goods, linking people to

a culture of modernization in the way of shopping. Through online shopping people

can purchase at their convenience, anywhere and anytime. Customers make

purchases that will fulfil the needs of them. The online shopping has been a way of

easier excess to products and service without the need of going to purchase the

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product in a specific place. In 1994 advance ways is introduced like online banking

and others such as online pizza shop by the pizza hut company. Online shopping by

amazon and eBay was created during 1995 and 1996 which was the first online tool

to purchase goods. Today the numbers of online shoppers has increased from very

few at the beginning and increased vastly as the years goes by.

2.1 Problem Definition

In this century, technology today has lead people to purchase goods from the online

platform, especially for youngsters that always have access to the internet. Other

than that, it has also become a trend to purchasing goods that are needed, through

online platform due to the convenience for consumers that have transportation issue

to purchase goods without leaving their home. Thus, the online platforms are facing

immense competitions with regards to retaining and attracting the publicity of their

customers due to people now preferring to purchase their goods from online

platforms rather than leaving their home and going to malls or even flying to other

countries to purchase their goods. Moreover, Zalora online website in Malaysia faces

stiff competition with .Lazada, fashion valet, 11 street and other online platforms in

Malaysia and its competitors selling similar products and offers a much cheaper

price to attract the consumer. Besides that, In order to succeed in the online

business, it is vital for Zalora Malaysia to be concerned with the factors influencing

CPI that will eventually lead to revisiting intention.

2.2 Research Questions

Preceding to having a proper research, it is vital that the person conducting it has an

idea of the areas to put his or her focus most, questions that will require the

researchers attention and finding the potential results. Such like questions are taken

into consideration during this research, which is as follows:

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 1. Does quality of goods sold influence purchase intentions among consumers?

2. Does presentation of the website (attractive, easy to choose from and not

confusing with too many advertisements, neat and presentable) influence

purchase intentions among the consumers?

3. Does online trust (the online platform has been certified) influence purchase

intentions among the consumers?

2.3 Research Objectives

This study is guided by the primary research objective which are as per the following:

1. To decide the key drivers that rouse potential clients to utilize online shopping

platforms.

From the primary research objectives above, the following sub research objectives

can be acquired. These comprise of the following:

1. To determine if quality influences customers purchase intentions when

choosing an online shopping platform.

2. To investigate if the website’s presentation affects customers purchase

intentions.

3. To identify if online trust influences customers purchase intentions.

3.0 Literature Review

3.1 Introduction
For this particular research paper, online purchase intention has been taken under

consideration as it is a fast moving business and a lot of people purchase goods

online. Online shopping is a complex process that can be divided into various sub –

process such as quality of purchase, web design, and consumer trust .Customers

are unlikely to evaluate each sub –process in detail during a single visit to an online

store, but rather will perceive the service as an overall process and outcome (Van

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Riel et al 2001) .Therefore, the dependent relative as well as the independent

variables can be effortlessly understood. This literature review will help in

highlighting the past researches on the variables that play a role in evaluating the

desired growth of a concerned business. The stated hypothesis is graphically

summarized with the conceptual framework and establishes a relationship between

the independent as well as the dependant variable. This particular section ends with

the development of the hypothesis.

3.1.1 Purchase Intention

This in particular highlights the commitment of each individual to himself or herself to

purchase the product again. When the concerned individual visits the market

segments, it also highlights the recollection of the desired customers (Back, 2012).

Many past researchers have certainly evaluated the objective that purchase intention

is one of the major factors which influences the purchasing behaviour of the

respective customers (Baker, 2007). Moreover, the purchase intentions may also

influence the desired transaction activities for future aspects. As told by (Baum,

Mackmin and Nunnington, 2011), purchase intention generally represents the

merchandise that consumers’ will buy in the future. Specifically speaking, it is the

desired products that the consumers want to purchase. The purchase intention of the

customers highlights the desired needs regarding the purchasing of that particular

product from the defined market segments. Furthermore, the purchase decision of

consumers may be described as the incentive of the consumers to perform the

desired act for purchasing the respective products (Belk, Askegaard and Scott,

2012). The purchasing conduct of the clients are of incredible significance for the

sellers and the sellers have to make attractive schemes regarding their products for

influencing the buying behavior of the respective consumers (Belton, 2003).

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Purchasing intention of the customers are considered to be the most crucial part

from sellers perspectives as it helps in the selling of the products on a large scale.

There are certain theories that needed to be boosted significantly for enhancing the

purchase intention of the customers (Borzooei & Asgari, 2014).

3.2 Influencing Factors

3.2.1 Quality
When consumers are shopping they may consider quality when choosing

products .Quality could be described as those features of a product or service that

allow it to satisfy customers wants. Studies have found that service provider

perceptions of customer satisfaction are a function of perceived service quality of

Technology services (Martensen et al 2000; zhu et al 2002).Additionally previous

studies have suggested that customer perceptions of service quality and satisfaction

positively influence purchasing intentions. Quality is viewed as a key vital part of

upper hand and accordingly the improvement of item or administration quality has

been a matter of principle worry to firms (Daniel, Reitsperger, and Gregson, 1995;

Foster and Sjoblom, 1996). Garvin (1987) distinguishes five ways to deal with

characterize quality: otherworldly, item based, client based, producing based, and

esteem based. Otherworldly meaning of value is synonymous with intrinsic

magnificence. The supposition of otherworldly approach is that quality is both

outright and all around conspicuous. The item based methodology has its roots in

financial aspects. Garvin (1984) contends that contrasts in the amount of a few

fixings or qualities controlled by the item are considered to reflect contrasts in quality.

While in the client based definition, quality is the degree to which an item or

administration meets or surpasses clients' desires. The assembling based

methodology has its roots in operation and creation administration. Its quality is

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characterized as conformance to particulars (Crosby, 1979). Nature of conformance

identifies with the extent to which an item meets certain outline gauges. Furthermore,

the quality based definition likens quality with execution at a satisfactory cost, or on

the other hand conformance at an adequate taken a toll. The effect of value

introduction on online buy aim is very much archived in the surviving writing.

Bellenger and Korgaonkar (1980) state that recreational customers had a tendency

to consider quality, assortment of item sorts and charming store climate as vital

variables when picking stores. With regards to web-shopping environment, Gehrt, et

al. (2007) found that clients from the shopping satisfaction segment are vigorously

slanted toward diversion, quality, and motivation introductions when making online

purchase.

3.2.2 E-Service Quality

E-service quality can be defined as overall customer evaluations and judgments

regarding the excellence and quality of e-service delivery in the virtual marketplace

(Santos, 2003). Research over the past years has demonstrated that the service

quality influences consumption decisions, but only recently these findings have been

applied to e-commerce (Yang and Jun 2002; Wolfinbarger and Gilly, 2003). For

example, service quality measures have been applied to assess the quality of virtual

community websites (Kuo, 2003), satisfaction with e-commerce channels (Devaraj et

al., 2002), and factors of website success (Liu and Arnett, 2000). Online shopping is

a complex process that can be divided into various sub-processes such as

navigation, searching for information, online transactions, or customer interactions.

Customers are unlikely to evaluate each sub-process in detail during a single visit to

an online store, but rather will perceive the service as an overall process and

outcome (van Riel et al., 2001). Furthermore, for online customers, high standard e-

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service quality is the means by which the potential benefits of the internet can be

realized (Yang, 2001). Because it is much easier to compare product practical

features and prices online than through traditional channels, e-service quality

becomes a key factor for customers (Santos, 2003). Online customers thus expect

equal or higher levels of service quality than traditional channels customers.

Parasuraman et al. (1988) conceptualize administration quality as the relative

perceptual separation between client desires and assessments of administration

encounters and administration quality utilizing a multi-thing scale called the

SERVQUAL model. Santos, 2003). Furthermore, past studies have recommended

that apparent administration quality emphatically impacts consumer loyalty and buy

expectations (Rust and Zahorik, 1993; Martensen et al., 2000). All things considered,

with regards to internet shopping, few studies have inspected the helpfulness of

relative administration quality measurements in anticipating general administration

quality, consumer loyalty and purchase expectations. E-service quality dimensions

are casually linked to the two performance measures of overall service quality and

customer satisfaction and in turn influence customer purchase intentions.

3.2.3 Online Trust

Deutsch (1962), Rotter (1971) and Baier (1986) concentrate on the mentality of

desire in their meaning of trust. For instance, Rotter characterizes trust as ''a hope

held by an individual or gathering that the word, guarantee, verbal or composed

articulation of another individual or gathering can be depended on''. Sabel (1993)

and others (Deutsch, 1958; Lewicki and Bunker, 1995) consider trust to be a sort of

certainty. They state that trust is ''the common certainty that no gathering to a trade

will misuse another's vulnerabilities''.

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As per a study by Caldwell, Helen M. (2000), variables which may infer reliability of

the merchant before a trade are alluded as signs. Their study demonstrate that

prompts, for example, item ensures, secured site exchanges, and option requesting

procedures are critical for starting the relationship through the guarantee of trust in

Internet Marketing. The way of trust in the online setting has additionally been

investigated by Michelle Daignault, Michael Shepherd, Sunny Marche and Carolyn

Watters (2002) in their study. They have recognized trust standards and instruments

that backing the advancement of online trust in their examination. The trust

standards examined by them speak to parts of trust that should be tended to when

building foundation to bolster online trust. Those trust standards include: Trust relies

on upon personality; Trust depends on data; Trust is an element of saw danger;

Trust extends after some time and with expanded correspondence; Trust is a matter

of degree; Culture influences trust; Third gathering evaluations are imperative in

creating trust; Second gathering assessments are essential in creating trust; First

gathering data is vital in creating trust and formal and social controls are critical in

creating trust. As per Dongmin Kim and Izak Benbasat (2003), absence of trust is the

key obstacle to further multiplication of Internet shopping. Their examination

recognizes certain trust-related contentions like "Mastercard shopping may not be

sheltered", "My own data may not be ensured", "Data Transmission may not be

secure", "A store may ask for superfluous data about clients", "Cost may not be

sensible" , "Item quality might be low ", "Return might be troublesome" and "Store

may not keep a conveyance date".

According to McCole and Palmer (2001), online purchasing requires online customer

trust. Egger (2006) contends that an ample amount of trust needs to exist when

placing an order online and when the customer submit their financial information and

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other personal info in undertaking financial transactions. Trust confidence undoubtly

influence customer online purchase intention (Verhagen, Meents, and Tan, 2006;

Verhagen, Tan and Meents, 2004; McKnight, Choudhury and Kacmar, 2002; Lim,

Sia, Lee and Benbasat, 2001; Jarvenpaa, Tractinsky, and Vitale, 1999). Jarvenpaa

and Tractinsky (1999) and Gefen and Straub (2004) concluded that the greater the

scale of consumers’ trust, the greater the scale of consumers’ purchase intentions.

3.2.4 Website Presentation

The aspect of webpage design is essential for any online store to draw in clients.

According to Ranganathan and Grandon (2002), website design exhibits the manner

in which the content is organised in the website. Wolfinbarger and Gilly (2003)

contended that when clients communicate with an online store they like to do as

such by means of a specialised interface and not through any representative. Hence,

the design of the website, which performs as the interface, would play a vital role in

influencing customer satisfaction as well as customer purchase intention. Moreover,

Ranganathan and Ganapathy (2002) have temporarily established that website

design emphatically influences purchase goal. Be that as it may, there has been little

agreement among the researchers on the variables that constitute website design.

3.3 Hypothesis Formulation

H1: Quality has a positive relationship with consumer purchase intention.

H2: Online trust is positively related to the customer online purchase intention.

H3: Website presentation is positively related to the online purchase intention.

3.4 Conceptual Framework

From the reviewed literatures, our research model is able to display the relationship

between the independent and dependant variables. The dependant variable would

be the consumers’ purchase intention in online shopping. The three independent

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variables will be quality, online trust and website presentation. The following diagram

shows the conceptual framework of the study.

E-service
quality H1

Consumer
• Online H2
Trust
Purchase intention
in online shopping

Website H3
Presentation

Diagram 1: Conceptual Framework of the study.

4.0 Research Methodology

4.1 Deciding the subject of Research
Initially we had a lot of ideas for survey based project. Then it was mutually decided

that the survey sample should be huge. So we decided to take a subject in which we

can get wide range of sample size.

In order to face 21st century, the internet prepares people of different age groups to

adapt to social and technological changes that are taking place at an unprecedented

rate. In this context, the internet is especially a resource for continued education for

the acquisition of new knowledge and skills, for gaining information through media.

4.2 Framing appropriate questionnaires

The initial steps of our research was to frame a less complicated questionnaire so

that our sample will have a clear idea of what is being required from them and save

their precious time. The questionnaire was constructed to mirror many of the queries

that have been asked in previous studies of online shopping.

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 4.3 Space boundaries
Space boundary means the area that we covered for the survey. In this research, the

scope for the survey was Bandar Sunway, Subang Jaya and Puchong. This aspect

focuses on how the people have changed their buying method and has become

techno savvy.

4.4 Types of data sources

Basically there are two types of data:

I. Primary data

II. Secondary data

i) Primary data are the data which are gathered for the initial period of time,

representing the population, taking a sample. The data is not a data which is

published. It is a problem related data collected by the researchers, and it

becomes the secondary data for everybody, other than the researchers. It can

be collected in five ways:

• Observational research

• Survey research

• Focus group research

• Experimental data

• Behavioural data

For this research we used primary as well as secondary data. The survey method

was adapted to collect the primary data. Once the decision of gathering primary data

is taken, one has to decide about the mode collection. A structured questionnaire is

used to collect the information from the readers. We then referred to journals

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ii) Data which has been published are consider as secondary data. This data

may be useful for many other people than the researcher who has published

it. Below are the various types of secondary data collection, which are:

• Commercial sources

• Industry sources

• Government sources

• Miscellaneous sources

4.5 Data collection method

A market researcher has a choice of three main research instruments in collecting

data, namely:

1. Questionnaire

2. Qualitative measures

3. Mechanical devices

We have chosen questionnaires and qualitative measures which is focus group

dialogue, as the research instrument. A questionnaire consists of a set of questions

presented to respondents. Because of its flexibility, questionnaires is by far the most

common instrument used to collect the primary data. Questionnaires need to be

carefully developed and tested before they are administrated on a large scale. We

had done the survey using Google forms. It was separated into three segments,

which are questions on dependent variable, independent variables and followed by

demographic profile. So in preparing questionnaires, a researcher carefully chooses

the questions, their formation and working sequences. The formation of questions

can influence the responses.

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In qualitative measures, we used focus group discussion (dialogue) as the research

instrument. Focus group discussion research is a discussion technique used to

collect data through group interaction on a topic determined by the researcher. Thus,

the client determines the focus of the group and the data comes from the group.

Essentially, it is a group experiences. It comprises a small number of carefully

selected people who are recruited to a group discussion based on their commonality

of experiences.

4.6 Sampling decisions

We have undertaken target- oriented method for sampling. Our target research were

based on an online survey.

Sample size:
Our sample size is 315. We had surveyed 315 samples, which were bifurcated into

52.1% of males and 47.9% females who use the internet for purchase.

Sample space:
The sample space of study consisted of 315 men and women, belonging to different

gender, age, ethnicity and monthly household income.

5.0 Data Analysis

This portion demonstrates the consequences of poll information studied by

respondents that were investigated. SPSS project was utilised to dissect all

information gathered from 315 respondents. Other than that, illustrative examination,

scale estimation and inferential investigation comprising of the ANOVA, regression

and Pearson Correlation analysis are the components that will be talked about in this

section. Results procured will be exhibited in diagrams and tables keeping in mind

the end goal to acquire a clearer picture.

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5.1 Descriptive Analysis
5.1.1 Respondent’s Demographic Profile
Subject to the demographic study area, there were six inquiries asked, which

comprises of gender, age, ethnicity, monthly household income, education level and

employment status.

5.1.1.1 Gender
Table 1: Gender

Gender

47.9 52.1

Male Female

Figure 1.1
As seen above, Table 1 and Figure 1.1 displays the gender distribution of

respondents in this research. Most of our respondents were male with a percentage

of 52.1% or 164 respondents whereas the minority were females with a percentage

of 47.9% or 151 respondents.

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5.1.1.2 Age
Table 2: Age

Age
8.3%

18.4%
49.2%

24.1%

18-25 26-35 36-45 Above 50

Figure 2.1
Table 2 and Figure 1.2 represents the age groups of the respondents. Majority of our

respondents fall under the age group of ‘18-25’ with a percentage of 49.2% or 155

respondents. The minority of our respondents fall under the ‘Above 50’ category with

a percentage of 8.3% or 26 respondents. ’26-35’ age group comes in second with

24.1% or 76 respondents and the age group ’36-45’ comes in third with 18.4% or 58

respondents.

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5.1.1.3 Ethnicity
Table 3: Ethnicity

Ethnicity
5.4%
16.8%

40%

37.8%

Malay Chinese Indian Other

Figure 3.1
As seen on Table 3 and Figure 3.1, the larger part of respondents were Indian with

40% or 126 respondents, the second larger part is taken by Chinese with 37.8% or

119 respondents. Malay comprising 16.8% or 53 respondents comes in third place

and lastly the category ‘other’, which includes Caucasians, Eurasians, Koreans, etc.

with 5.4% or 17 respondents.

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5.1.1.4 Monthly Household Income
Table 4: Monthly Household Income

Monthly Household Income

24.4%
29.8%

6%

13% 12.7%

14%

RM1000-RM2000 RM2000-RM3000 RM3000-RM4000

RM4000-RM5000 RM5000-RM6000 Above RM6000

Figure 4.1
Table 4 and Figure 4.1 indicates that the majority of respondents' monthly household

income of 29.8% or 94 respondents is between RM1000-RM2000, next with 24.4%

or 77 of respondents with monthly household income of RM6000, 14% or 44

respondents of monthly household income of RM3000-RM4000, 13% or 41

respondents with the wage between R4000-RM5000, monthly household income of

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RM2000-RM3000 with 12.7% or 40 respondents and lastly, a minority of 6% or 19

respondents with monthly household income of RM5000-RM6000.

5.1.1.5 Education
Table 5: Education

Education
1.6%
17.1%
20%

32.7%
28.6%

SPM or below STPM or PRE-U or Diploma

Undergraduate Postgraduate
Other

Figure 5.1
From Table 5 and Figure 5.1, the outcome presumed that majority of the

respondents right now has an education level of STPM or PRE-U or Diploma with

32.7% or 103 respondents. Not so far apart is an education level of undergraduates

with 28.6% or 90 respondents and with 20% or 63 respondents is an education level

of postgraduates. 17.1% or 54 respondents are those with an education level of SPM

or below. Lastly, the minority of respondents under ‘other’ with 1.6% or 5

respondents.

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5.1.1.6 Employment Status
Table 6: Employment Status

Employment Status

34.6%

51.1%

6.3%
7.9%

Full Time or Part Time Not employed Retired Student

Figure 6.1
As shown by Table 6 and Figure 56.1 out of 315 respondents, 51.1% or 161

respondents are working full time or part time, followed by 34.6% or 109 respondents

are students. 7.9% or 25 respondents not employed and 6.3% or 20 respondents are

retired.

5.1.2 Respondent General Information

In this section, a total of 4 questions were asked.
5.1.2.1 When you hear the word ‘online shopping’, does Zalora come to mind?
Table 7: When you hear the word ‘online shopping’, does Zalora come to mind?

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 When you hear the word
'online shopping', does
Zalora come to mind?

25.1%

54.6%
20.3%

Yes No Sometimes

Figure 7.1
Based on Table 7 and Figure 7.1, of all 315 respondents, majority of them

responded ‘Yes’ meanwhile 20.3% or 64 respondents responded ‘No’. In addition to

that, 25.1% or 79 responded ‘Sometimes’.

5.1.2.2 Have you ever been to online shopping websites?

Table 8: Have you ever been to online shopping websites?

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 Have you ever been to online
shopping websites?
14.3%

16.2%

69.5%

Yes No Don’t remember

Figure 8.1
Based on Table 8 and Figure 8.1, majority of respondents consisting 69.5% or 219

respondents said that they have been to online shopping websites while a total of

16.2% or 51 respondents said that they have not been to online shopping websites.

Besides that, 14.3% or 45 respondents responded that they don’t remember if they

have been to online shopping websites.

5.1.2.3 With the new promotion and advertisement about online shopping, has
your numbers of visits increased?
Table 9: With the new promotion and advertisement about online shopping, has your
numbers of visits increased?

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 With the new promotion and
advertisement about online
shopping, has your number of
visits increased?
15.6%

22.9%
61.6%

Yes No Don't remember

Figure 9.1
From Table 9 and Figure 9.1, it shows that majority of respondents responded ‘Yes’

with a total of 61.6% or 194 respondents while 22.9% or 72 respondents responded

‘No’. Other than that, 15.6% or 49 respondents responded that they don’t remember

if their number of visits increased.

5.1.2.4 How often do you shop online?

Table 10: How often do you shop online?

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 How often do you shop
online?
12.4% 8.3%

12.4% 17.5%

49.5%

Daily Weekly Monthly Never No answer

Figure 10.1
Table 10 and Figure 10.1 shows that most of the respondents shop online monthly

with a total of 49.5% or 156 respondents. Meanwhile, 17.5% or 55 respondents

responded that they shop online weekly. Furthermore, 8.3% or 26 respondents were

found to shop online daily and that 12.4% or 39 respondents have never shopped

online. However, 12.4% or 39 respondents did not respond to this question at all.

5.2 Scale Measurement

5.2.1 Reliability Analysis
Cronbach's alpha is one of the common practice applied as a part of the

dependability investigation. The Cronbach's alpha varies from 0 to 1 and from a

centrality of 0.6 or less implies unsuitable inside consistency dependability.

Table 11: Reliability Analysis

Constructs Cronbach’s Number of items
Alpha
1 Purchase Intention .678 3
2 Quality .906 6
3 Trust .891 6
4 Presentation .870 5
Source: Developed for the research
Table 11 displays the yield of the unwavering quality test that all surpassed 0.6. As

shown in the table above, Quality was measured by 6 items with the highest alpha

coefficient of 0.906. Measured by 6 items as well, is Trust with the second highest

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alpha coefficient of 0.891. Thirdly, Presentation is measured by 5 items with an alpha

coefficient of 0.870. Lastly is purchase intention, measured by 3 items with an alpha

coefficient of 0.678.

5.3 Inferential Analysis

5.3.1 Pearson’s Correlation Analysis
Table 12: Pearson’s Correlation

Source: Developed for the research.

In total, r > 0 indicated a positive relationship, r < 0 indicates a negative relationship

while r = 0 indicates no relationship. As determined by Choudhury (2009), the

accompanying dependable guidelines for Pearson's Correlation (r) rules on the

quality of relationships are particularly useful:

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 Table 13: Rules of thumb for Pearson’s Correlation (r).

Size of Correlation Interpretation

+1.0 to +0.5 Strong positive relationship

+0.3 to +0.5 Moderate positive relationship

+0.1 to +0.3 Weak positive relationship

–0.1 to +0.1 None or very weak relationship

-0.3 to –0.1 Weak negative relationship

-0.5 to –0.3 Moderate negative relationship

-1.0 to –0.5 Strong negative relationship

Adopted: Choudhury (2009)
As shown in Table 12 and 13, the connection of each independent variable (quality,

trust, and presentation) is critical at 0.01 significance level (2-tailed) towards

purchase intention. The relationship between quality and purchase intention is r=

0.523, and p-value = 0.000. Since p-value is under 0.01, it is assumed that there is a

significant relationship between both variables through "Moderate positive

relationship". Trust is r= 0.527 and p-value is 0.000, there is a "Moderate positive

relationship" between trust and purchase intention. From the analysis, it is found that

presentation also has a "Moderate positive relationship" with purchase intention

towards online shopping, the outcome shows a Pearson Correlation of r = 0.506 and

p-value is 0.000. Therefore, this shows that quality has the highest significance

relationship with purchase intention.

5.3.2 Multiple Regression Analysis

;5Table 14: Model Summaryb

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Table 14 displays that R Square is 0.316 for regression of purchase intention of
0.562. In the meantime, 31.6% of variety in the purchase intention was affected by
the three independent variables (quality, trust and presentation). The other 68.4%
remain uninfluenced.

Table 15: ANOVAa

As displayed in ANOVA, Table 15, F=47.935; p= 0.000 <0.001, therefore, wellness

for the model is affirmed. The general regression model with three variables of

quality, trust and presentation has performed well in analysing the variety in

purchase intention.

Table 16: Coefficientsa

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5.4 Hypothesis Testing
Hypothesis 1
H₀: There is no relationship between quality and purchase intention.

H1: There is a positive relationship between quality and purchase intention

Reject H₀, if p < 0.05

Based on Table 16, the significant value of quality is 0.011, which is below p-value of

0.05. Hence, H₀ is rejected, which indicates that there is a positive relationship

between quality and purchase intention.

Hypothesis 2

H₀: There is no relationship between online trust and purchase intention.

H2: There is a significant relationship between online trust and purchase intention.

Reject H₀, if p < 0.05

Based on Table 16, the significant value of online trust is 0.021, which is less than p-

value of 0.05. Hence, H₀ is rejected, which indicates that there is a positive

relationship between online trust and purchase intention.

Hypothesis 3

H₀: There is no relationship between website presentation and purchase intention.

H3: There is a positive relationship between website presentation and purchase

intention.

Reject H₀, if p < 0.05

Based on Table 16, the significant value of price is 0.020, which is below p-value of

0.05. Hence, H₀ is rejected, which indicates that there is a positive relationship

between website presentation and purchase intention.

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6.0 Discussions of Major Findings
Table 17: Summary of Research Objectives, Hypothesis and Results
Research Objectives Hypothesis Results Achieved

To determine if quality Quality has a positive

r = 0.523
influences customers relationship with online
(p < 0.05) Yes
purchase intentions. purchase intention
p = 0.011

To identify if online trust Online trust is positively

r = 0.527
influences customers related to the online
(p < 0.05) Yes
purchase intentions. purchase intention.
p = 0.021

To investigate if the Website presentation is

website’s presentation positively related to r = 0.506

affects customers online purchase (p < 0.05) Yes

purchase intentions. intention. p = 0.020

Based on our results, there is a significant relationship between quality and online

purchase intention.

Previous studies have suggested that customer perceptions of service quality and

satisfaction positively influence purchasing intentions. Quality is viewed as a key vital

part of upper hand and accordingly the improvement of item or administration quality

has been a matter of principle worry to firms (Daniel, Reitsperger, and Gregson,

1995; Foster and Sjoblom, 1996).

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There is also a significant relationship between online trust and online purchase

intention. An author that has the same results as us is McCole and Palmer (2001),

online purchasing requires online customer trust.

Our last hypothesis has also a significant relationship between website presentation

and online purchase intention. Ranganathan and Ganapathy (2002) have temporarily

established that website design emphatically influences purchase goal.

7.0 Conclusion and Recommendation

In conclusion, this research aims to assist present and future online shopping

websites in understanding the factors that influence consumers’ purchase intention

towards online shopping. Based on the results obtained, it is recommended for

online shopping websites to emphasise on the quality (e-service quality), as well as

online trust in as both, appear to be aspects consumers’ look at the most when

deciding on purchasing online.

8.0 Limitations
In this research, there were a few difficulties during the progress of the analysis.

Constraints are fundamental for future researchers to learn and observe as a way to

improve future research.

The first difficulty we went through was time constraint. We had to change our

questionnaire as there was no dependent variable and distribute it in one day. Due to

the time constraint, we were only able to collect 315 surveys.

Another constraint is language barriers. Because we conducted an online survey,

there were a few international respondents. The international respondents may not

have been able to understand what we were trying to relay, therefore, there was

language barriers.

Lastly was limited access to secondary data (journals) as most of the journals we

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10.0 References
Gilly, M. W. (n.d.). SHOPPING ONLINE FOR FREEDOM, CONTROL AND FUN. Retrieved May 2016

Mark Brown, N. P. (2001, December). Buying or Browsing? An exploration of shopping orientations

and online purchase intention. European Journal of Marketing, 37(11/12), 1666-1684.
doi:10.1108/03090560310495401

Moez Limayem, M. K. (2000, April 3). What Makes Consumers Buy from Internet? A Longitudinal
Study of Online Shopping. 30(4). Retrieved May 2016

Sun, G. T.-C. (2009, September 8). Factors influencing satisfaction and loyalty in online shopping: an
integrated model. Online Information Review, 33(3), 458-475.
doi:10.1108/14684520910969907

Trifts, G. H. (1999, September 7). Consumer Decision Making in Online Shopping Environments: The
Effects of Interactive Decision Aids. Retrieved May 2016

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