Online purchasing service

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Introduction to Research Methods

Title -

Why online purchasing service not popular in Hong Kong

Purpose -

This coursework explain that why internet online purchasing service not popular in Hong Kong.

Finding -

Uses a complacent analysis to make the law, expounded eight factors had been affirmed why the consumer does not use the Internet online purchasing service. According to the frequency order, the factor is: About risk impression; Need; Lacking Knowledge; Inertia; Inaccessibility; human touch; costing and IT fatigue.

Practical implications -

The findings provide a frame for the creation strategy enhancement adoption rate.

Keywords:

Internet, Online purchasing, Consumer behaviour.

Paper type:

Research paper

Introduction

Online purchasing service - a service transport system has been developed. Suppliers providing their purchases through internet and show the prices to consumers and consumers choose their need never leave one's home. The cost of delivering a service over internet is much less than delivering same service over the shop. Many shop which is focused on the online purchasing service to recover tradition method and makes its internet operation advantageous.

Background

In Hong Kong, where the present study was conducted. The 2008 annual survey of Census and Statistics Department of Hong Kong (2008), Thematic Household Survey Report No.37, Information Technology usage and Penetration established that percentage of household with PC at home among all households is 74.6% and collect to the internet at home is 95.1%. However, only 23.5% of persons aged over 15 who had performed electronic commerce transactions online for personal matters during the 12 months. And only 10.1% of persons who had used online purchasing services or personal matters during the 12months before enumeration. There did not correspond to the reasonable ratio.

Objectives

The objectives of this coursework is the find out the better factors which to illustrate why online purchasing service not popular in Hong Kong. I provide an overall of online purchasing service market in Hong Kong to help the readers to understanding of Hong Kong local tradition on purchasing service. After presenting the literature review to explain why consumers are not using online purchasing service.

Literature review

We start by curtly describing three frame, these are the Technology Acceptance Model (TAM) of Dais (1986), the Technology Readiness Index (TRI) of Parasuraman (2000) and, finally, the pioneering diffusion literature of Rogers (1962) and Ostlund (1974).

They provide a guide to understanding why consumers are not using online purchasing service.

The TAM uses the Theory of Reasoned Action (see Fishbein and Ajzen, 1975; and Ajzen and Fishbein, 1980) to state computer usage behavior. The TAM explains causal linkages between perceived ‘usefulness' and ‘ease of use' and the manner, purposes and real user adoption behavior. Davis (1989) state that feelings about the usefulness and the ease of use of a word processing package were powerful in earning student ‘acceptance' of the package. If the discuss is true and the principles apply in an online purchasing service, we can say that consumers who do not use online purchasing service were aware the service was useless and hard to use.

The TRI of Parasuraman (2000) includes four elements:

Optimism: people with a certain opinion of technology believe it gives increased control, flexibility and efficiency in their lives;

Innovativeness: people are technological forerunners and thought leaders;

Discomfort: people sense a lack of control over technology and observe overwhelmed by it;

Insecurity: people doubt technology and are doubtful of its ability to work properly.

Parasuraman (2000) explains that optimism and innovativeness are pilot of technology readiness, while bother and insecurity are inhibitors. These findings suggest that, if consumers are not ‘ready' to be an online purchasing service user, they are probable to express bother and insecurity about the service and feel less hopeful and innovative about the technology.

Ostlund (1974) expended Roger's work (1962) on extension in distinguishing risk as authoritative to the adoption process. Extension studies, amongst other things, generally find that adopters are more creative, fewer risk against, sense an innovation as being fewer complicated and as offering relative benefits. The understandings of non-adopters about the same factors are the complete opposite.

Black (2001) and Cunningham (2003) have more recently quested to evaluate the theory of extension in the meaning of online purchasing service and build if there are grounds for example, found that adopters perceived online purchasing service as being more suitable and more harmonious with the adopter's lifestyle. Non-adopter sensed the services as being more mixed and wanting a higher level of PC skills.

Even though the TRI, TAM and diffusion models present not same analytic thrusts, there are some same themes. In explaining these themes, there is a need to be circumspect that the specific researchers have chosen their labels for each of the factors they developed. This can result in not same labels being given to like factors. Table I shows the diverse factors defining the TRI, TAM and diffusion models. The content of Table I explains the extent of commonality between the unequal studies.

Table I A comparison of the TRI, TAM and Diffusion Models

TRI

(Parasuraman, 2000)

TAM

(Davis, 1986)

Diffusion(Rogers,1962; Ostlund, 1974 Black et al, 2001)

Discomfort

Ease of use

Complexity (Rogers)

Optimism

Usefulness

Relative advantage (Rogers)

Innovativenes

Not indentified

Innovativeness (Rogers)

Not indentified

Not indentified

Compatibility (Rogers)

Not indentified

Not indentified

Trialability (Rogers)

Not indentified

Not indentified

Observability (Rogers)

Insecurity

Not indentified

Perceived risk (Ostlund)

Not indentified

Not indentified

Societal issues

(Black et al.)

Not indentified

Not indentified

Sense of fatalism (Black et al.)

My literature review headlines senses about risk(causing consumers to feel risky); complicacy (creating a feeling amongst consumers that technology is difficult to use and giving a feeling of bother); the useless of technology (illustrating that non-user view technology as lacking useless and inducing pessimism); and innovativeness(explaining that non-user lack the want to adopt a recently-introduced service).

The literature review advises the importance of two inquires. The first inquire asks why traditional users might not use online purchasing services over the internet. The second inquire quests to confirm the characteristics of people who have greater not easy in accepting the internet service:

Methodology

Research design

Further to the objectives of this proposal, I select a personally administered survey to collect the data. The method lt me to screen respondents and let respondents to think related key issues before they finished the survey at their ease.

Survey form was divided to two parts. The first part defined the kind of the study and inquired respondents to list and shortly define the reasons why they don't use online purchasing service. The second part requested demographic and ‘technological' data. Demographic data contained the respondents' gender, age, highest level of education and average, monthly income. This data made it possible to build up the sample to the whole population.

The seven technological questions quested to confirm.

1 The possibility of respondent growing to an online purchasing service user within two years of the survey

2 The respondent uses a PC at his/her place of work;

3 The respondent's household owns a PC;

4 The respondent conducts on-line transactions;

5 The respondent surfs the web and;

6 How much time spent on each week; and

7 The respondent's PC skills level.

The technology and demographic respondent were use in trying to distinguish those who say they are become online purchasing service user form those who are not.

The survey form was issued to two parts of testing. In the first part, nine customers, who were not online purchasing service users, were read through the draft survey form and mention on the understanding of the regulations. The main interest, described by six respondents, related to a sensed problem in the first part of survey form. Respondents wanted to list their reasons for not being online purchasing service user and, in the left hand side of page requesting this data, pre-printed was reason 1 to reason 5. Concerned respondent felt hard to submit five reasons. And this wasn't my purpose. The modified version of the survey form was finished by nine customers, who ere not online purchasing service users. Respondent were requested any concern that they had about the survey form's suggestion and other satisfied. Respondent have not any non-positive feedback in the second part survey and so this version of the survey form was use din the full survey. The two parts of survey took place in community centers and had already been taken as places for the full survey.

Limitations

The major limitation of this coursework was used the collect data, If want to have a full random sample, it must be a list of all names and addresses of everyone who is not a online purchasing user and to randomly choose from the list. But this list does not exist. The second limitation using content examination. The evaluating process and the identify are non-objective and want the sorters to show an factor of flexibility in reaching at the final grouping.

Project Plan

Tasks

Start Date

Duration (Days)

End Date

Select Project Title

2009/9/21

14

2009/10/5

Data Collection

2009/10/3

31

2009/11/3

Review of Literature

2009/10/15

40

2009/11/24

Draft literature review

2009/11/30

16

2009/12/16

Review resarch method

2009/10/20

26

2009/11/15

Collect data

2009/11/16

30

2009/12/16

Pilot and revise questionnaire

2010/1/18

61

2010/3/20

Administer Questionnaire

2010/3/22

61

2010/5/22

Final collection of questionnaire

2010/5/24

92

2010/8/24

Analysis of data

2010/5/24

61

2010/7/24

Draft of project report

2010/7/26

92

2010/10/26

Final writing of project report

2010/10/28

154

2011/3/31

Time Table

Reference

Ajzen, I. and Fishbein, M. (1980), Understanding Attitudes and Predicting Social Behavior, Prentice-Hall, Englewood Cliffs, NJ.

Black, N.J., Lockett, A., Winklhofer, H. and Ennew, C.(2001), “The adoption of internet financial services: a qualitative study”, International Fournal of Retail and Distribution Management, Vol. 29 No. 8, pp. 390-8.

Boyd, H. W. Jr and Orville, C.W. Jr (1990), Marking Management: A Strategic Approach, Ch. 8, Irwin, Homewood, IL.

Census and Statistics Department http://www.censtatd.gov.hk/

Cunningham, J.B. (2001), Researching Organizational Values and Beliefs - the Echo Approach, Quorum Books, Westport, CT.

Davis, F.D.(1986), “A technology acceptance model for empirically testing new end-user information systems: theory and results”, doctoral dissertation, Sloan School of Management, MIT, Cambridge, MA.

Davis, F.D., Bagozzi, R.P. and Warshaw, P.R. (1989), “user acceptance of computer technology: a comparison of two theoretical models”' Management Science, Vol. 35 No. 6, pp. 982-1003.

Fishbein, M. and Ajzen, I. (1975), Belief, Attitude, Intention and Bahavior: An Introduction to Theory and Research, Addison-Wesley, Reading, MA.

Foxall, G. R. (1984), Corporate Innovation: Marketing and Strategy, Ch. 2, St Martins Press, New York, NY

Gatignon, H. and Robertson, T.S. (1985), “A prepositional inventory for new diffusion research”, Fournal of Consumer Research, Vol.11, March, pp. 849-67.

Parasuraman, A. (2000) “Technology Readiness Index(TRI): a multiple-item scale to measure readiness to embrace new technologies”, Fournal of Service Research, Vol. 2 No. 4, pp. 307-20

Rogers, E.M. (1962), Diffusion of Innovations, The Free Press, New York, NY.

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