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A STUDY ON ONLINE SHOPPING PURCHASE OF GOODS: A CASE IN KOTA KINABALU

BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS (MARKETING)

F A C U L T Y OF BUSINESS MANAGEMENT UNIVERSITI TECHNOLOGI MARA CAWANGAN KOTA KINABALU SABAH

NORISUWANAH BINTI JAFFAR 2010931063

J U N E 2013

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A C K N O W L E D G E M E N T

Bismillanirohmannirohhim (With the name of Allah SWT)

First of all I want to say thank Allah S.W.T and my precious family for giving me strength and support throughout this challenging 5 month. It is all because of them I can get through all the obstacle.

Secondly, I want to thank you to my lecturer Dr Noorziah Mohd Salleh who help me gone through and guide me until the end of this research. Without her help and guidance, I would not be able to finish all this report alone. I really appreciate on what she had done to me, sharing her thought and knowledge that is very precious to me.

Not forgotten to all my lecturers who had taught me throughout the years whereby they spend more time and energy in helping me until this stage.

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A B S T R A C T

The Internet has become an essential part of our daily life, and companies realize that the Internet can be a shopping channel to reach existing and potential consumers.

With this consensus Online Shopping as a whole has rapidly grown. The biggest surprise is that clothing is one of the top categories purchased online. Freedman, argues that this is not surprising at all because, clothing sales has always been a top category in the catalogue channel, so naturally the Internet channel should be no exceptions.

Although online apparel shopping continues to grow, there are problems why consumers hesitate to shop for clothing online.

In this project, the main aim is to identify the factors that influence customer to purchase online.

This dissertation includes a literature review giving background information of website design, customer service, reliability and also the trust on online website. Furthermore, evaluating the finished product whether aim has been achieved.

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T A B L E O F CONTENT

1. 1. Content page 1.1. Title page ii 1.2. Declaration of original work iii

1.3. Letter of submission iv 1.4. Acknowledgement v

1.5. Abstract vi 1.6. List of Table and Figure vii

2. Section One: Introduction

2.1. Background of study 1 2.2. Research model 2 2.3. Theoretical framework 3 2.4. Aims and objectives 4 3. Section Two: Literature Review

3.1. Literature Review 5 4. Section Three: Research Methodology

4.1. Research design 8 4.2. Target Population 8

4.3. Location 8 4.4. Sampling 9 4.5. Instrument 9 4.6. Reliability 9 4.7. Pre-testing 10 5. Section Four: Finding and Analysis

5.1. Demographic finding analysis 11

5.2. Factor Analysis 12 5.3. KMO and Bartlett's Test 17

5.4. Communalities 18 5.5. Total Variance Explained 19

5.6. The scree plot for the factors analysis 20 5.7. Comparative analysis of four factors 21 6. Section Five: Conclusion

6.1. Conclusion 23 6.2. Limitation and future direction 24

7. Bibliography 25

8. Appendices 28

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L I S T O F T A B L E

Table Page Table 4.1: Respondent demographic result 11

Table 4.2: Correlation table analysis 12 Table 4.3: KMO and Bartlett's test analysis 17

Table 4.4 : communalities 18 Table 4.5: Total Variance Explained 19

Table4.6: comparative analysis of four factors 21

Figure

Figure 4.1: The scree plot for the factors analysis 20 Figure 4.2: Total Average Mean for Four Independent Factors 21

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