RESEARCH OVERVIEW
Introduction
In this study, the researchers would like to determine the relationship between the independent variables, which are word of mouth, subjective norm, perceived risk and trust, and the dependent variable, which is purchase intention in social business. In this chapter, the background of the research will be presented, followed by a statement of the problem, research objective and research questions. In addition to theses, the significance of the research will be presented, followed by the layout of the chapters and the conclusion.
Research Background
The most popular social media sites for social commerce featured in this statistic are Tumblr, Instagram, Pinterest, Twitter and Facebook. The above statistics serve as a testament to the impact of social commerce on the global economy. However, this statistic shows the growing impact of social commerce on the global economy and the need to have a deeper understanding of this type of commerce method.
Problem Statement
The victim may only be aware when he has found out that he is exposed to the issue of financial liability. In addition, according to Yahia (2017), the lack of face-to-face in social commerce caused the increase in perceived risk in online shopping. The social commerce trend has made it a challenge to understand how to operate the social commerce platform and develop consumer trust.
Research Objective
- General Objective
- Specific Objective
Research Question
H0: To determine whether there is a significant relationship between word of mouth and purchase intention in social commerce. Therefore, there is a significant relationship between word of mouth and purchase intention in social business. A negative legacy can have a negative impact on purchase intention in social business.
Hypotheses of the Research
Significance of the Research Study
There are few factors that can contribute to a better understanding of consumer perception regarding purchase intent. With feedback from respondents, marketers would better understand the market and be able to accurately and effectively position their market. A deep understanding of the market will help improve the development of the economy.
Chapter Layout
- Chapter 1
- Chapter 2
- Chapter 3
- Chapter 4
- Chapter 5
Discussion of the main findings will be discussed and some suggestions will be advised in the implications section of the study. The limitation of the study will also be presented in this chapter and list the recommendations.
Conclusion
LITERATURE REVIEW
- Introduction
- Review of Literature
- Purchase Intention
- Word-of-Mouth
- Subjective Norm
- Perceived Risk
- Trust
- Review of Relevant Theoretical Models
- Proposed Theoretical Framework
- Hypothesis Development
- The Relationship between Word-of-Mouth and Customer
- The Relationship between Subjective Norm and Customer
- The Relationship between Perceived Risk and Customer
- The Relationship between Trust and Customer Purchase Intention . 25
H1: To determine whether there is a significant relationship between subjective norm and purchase intention in social commerce. H2: To determine whether there is a significant relationship between perceived risk and purchase intention in social commerce. H3: To determine if there is a significant relationship between trust and purchase intention in social commerce.
METHODOLOGY
- Introduction
- Research Design
- Data Collection Methods
- Primary Data
- Secondary Data
- Sampling Design
- Target Population
- Sampling Frame and Sampling Location
- Sampling Elements
- Sampling Technique
- Sampling Size
- Research Instrument
- Construct Measurement
- Data Processing
- Data Checking
- Data Editing
- Data Coding
- Data Transcribing
- Data Cleaning
- Data Analysis
- Description Analysis
- Scale Measurement
- Inferential Analysis
- Conclusion
Primary data collection is one of the sources of data collection methods that can collect data through interviews, questionnaire surveys and experiments. Moreover, according to Malhotra and Birks (2007), the sample size does not need to be large, but it must represent most of the characteristics of the components of the target population. Meanwhile, 30 sets of questionnaires have been distributed for pilot testing to improve the quality of the questionnaire and make corrections before starting the formal survey.
Modification of the prepared questionnaire and structure was made to produce the questionnaire for the study. About 30 sample respondents helped to complete the questionnaire to identify possible questionnaire error. According to Malhotra (2006), data validation is the process of checking the completeness and quality of questionnaires to ensure high data accuracy.
Questionnaires returned by respondents will be checked to ensure data consistency and an optimal level of quality. The process includes format checking, completeness checking, drop checking and data evaluation. Descriptive analysis is used in order to describe the key characteristics of the variables (Sekaran & Bougie, 2009).
In the next chapter, the researchers will do a detailed data analysis and interpretation of the hypothesis.
DATA ANALYSIS
- Introduction
- Descriptive Analysis
- Demographic Respondents Profile
- Central Tendencies Measurement of Constructs
- Scale Measurement
- Reliability Analysis
- Inferential Analysis
- Multiple Regression Analysis
- Conclusion
From the data collected, 67% of the respondents made the purchase once a month and followed by the frequency that made the purchase of social media sites once a week occupied a portion of 18.5%. Other than that, there were 13% and 1.5% of respondents who never made purchase from social media sites and once a day respectively. According to the data collected, Facebook was the social media sites owned by the majority of the respondents, which was 42.
Then, 17.5% of respondents chose to frequent Instagram sites, followed by other sites instead of social media sites offered. Finally, each 0.5% of respondents were selected to visit Chilindo and WeChat frequently. Based on Figure 4.7 and Table 4.7, the majority of respondents, as much as 43%, spent more than 3 hours on social media sites in their daily life.
Then it was followed by 19.5% of the respondents who spent 2 hours on the social media sites. In addition, there were 13.5% of the respondents who spent their 3 hours on the social media sites. Based on Table 4.9, all variables were above 0.7, which was considered acceptable and good.
In this chapter, descriptive statistics of the respondents were summarized and their behavior towards social media sites was also analyzed.
DISCUSSION, CONCLUSION AND IMPLICATIONS
Introduction
As the significant value in multiple regressions is 0.007, which is below 0.05, the subjective norm variable is considered to have a significant relationship with purchase intention in social commerce. Therefore negative subjective rate is considered to have a negative effect on purchase intention in social commerce. Furthermore, based on Hajli, Sims, Zadeh, & Richard (2016) stated that trust in social commerce platform will positively affect consumers.
In this section, the suggestion is given to give some thoughts to businesses about the variables that can influence the purchase intention in social commerce. Subjective norm is a variable that describes a negative relationship with purchase intention in social commerce. Therefore, the negative subjective norm believed by referents can be very powerful and give a negative impact on the intention to purchase social commerce.
Perceived risk is a variable that has shown a negative relationship with purchase intention in social commerce. Thus, reliable information provided by the sellers can increase the satisfaction and reliability in social commerce. In a nutshell, the purpose of this research was achieved by determining the factors that influence consumers' purchase intention in social commerce.
The data from this research study can serve as a guideline for other researchers and online retailers for a sophisticated understanding of the relationship between factors and consumer purchase intention in social commerce. Social commerce research on the role of trust in a social networking site on purchase intentions. The aim of the research is to analyze the factors that influence the purchase intention in social business.
Summary of Statistical Analyses
- Description Analysis
- Scale Measurement
- Inferential Analysis
Discussion of Major Finding
- Word-of-Mouth
- Subjective Norm
- Perceived Risk
- Trust
Consumer is more likely to buy from social commerce if he or she perceives the risk as low (Jarcenpaa, Tractinsky, & Vitale, 2000). For example, a consumer tends not to make a purchase decision and engage in a transaction if the consumer perceives any losses that may occur in social commerce. Perceived risk is influential in the interpretation of buyers' behavior as it can motivate buyers to prevent errors or mistakes rather than increase the possible losses when making purchases in social commerce.
A buyer who perceives purchasing through social commerce as low risk will be more likely to make a purchase on the social commerce platform. At the same time, trust exists to reduce the risk perceived by the buyers when dealing with sellers in the social commerce market. Therefore, buyers will engage in “trust-related behaviors” such as sharing their credit card information, contact number, or making purchases in social commerce (Lu, Fan, & Zhou, 2015).
In a situation where consumers only trust the seller and not the social trading platform, consumers are less likely to participate in the purchase decision themselves with sellers. They tend to find other ways to buy from sellers instead of through a social commerce platform. Good faith and credibility, such as the integrity and ability of the social commerce platform to deliver the intended results, will also positively increase the purchase.
As a result, trust can reduce ambiguous transactions and uncertainty as well as sustain a long-term relationship on social commerce websites.
Implication of the Study
- Word-of-Mouth
- Subjective Norm
- Perceived Risk
It is difficult for the consumers to predict the possibility that the sellers will act in an opportunistic behavior. Furthermore, if the risk perceived by the consumers was beyond their limit of what they can tolerate, then the consumers would normally choose not to complete the transaction with those respective sellers in social commerce. The sellers on social commerce are suggested to provide refund, return and warranty policies for any defective product received by their consumers.
This automatic private message feature can make sure that the sellers have a quick response to their consumers' messages. Moreover, since consumers freely express their opinions and know the truth on the social media sites, sellers therefore had to make sure that their customer service, financial stability and product offering were easily searched by the consumers in a transparent situation. Thus, sellers can meet the consumers' requirement by providing a safe, quick response and informative transaction businesses.
There are two types of trusts on social media sites: marketplace trust and seller trust. If the social trading platform can provide consumers with easier access, communication function and complete information, it tends to improve the relationship between the consumer and sellers. Moreover, it is important for the sellers to create reliable information about their offered product.
This trustworthy information is about ensuring that there are no errors in the information that could mislead consumers about the product's properties.
Limitations of the Study
Recommendation for Future Research
Conclusion
The effect of social commerce factors on user purchasing behavior: An empirical investigation of renren.com. Retrieved March 29, 2018, from https://www.smartinsights.com/social-media-marketing/social-media-strategy/new-global-social-media-research/. Trust and risk in online social network purchase intention: A focus group study on Facebook in Thailand.
Perceptions of e-marketing, social media, individuals and purchase intention – what can we learn from research?. Please indicate your level of agreement with the following aspects about shopping through social media website.
