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FACTORS THAT AFFECT CONSUMERS ONLINE SHOPPING’S PURCHASING DECISIONS IN THAILAND

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Nguyễn Gia Hào

Academic year: 2023

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They usually buy the products through online shopping because it is more convenient and varied than physical stores. This study found that the theory of reasoned response (TRA) is related to consumer behavior in online shopping in Thailand. This research is aligned with the current market trend and applies the theory of consumer behavior and response to online shopping in Thailand, looking at the clothing sector.

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Research Questions

It is an advantage to find out what will be an effect on purchasing behavior and decision making for online shopping. The trend of consumer behavior for online shopping will be useful to make the sellers adapt to understand the consumers and purchasing behavior and what factors influence Thai consumers to drive more purchasing power to online clothing shopping.

Research Objectives

Discover the factors that have the most influence on encouraging consumers to make a purchase and make decisions about online shopping in the clothing sector. To understand the behavior of Thai consumers and discover the useful factors that can be developed for online shopping in the current and future market. The results will be described and analyzed in terms of purchasing behavior, payment transactions, services, qualities, the most efficient methods, subjective norms and the main elements that attract and influence them to shop online.

Research Scope and Expected Benefit

LITERATURE REVIEWS & PROPOSED FRAMEWORK

  • Theoretical Foundation
    • Consumers’ Decision Making
    • Online Consumers’ Purchasing Behavior
  • Proposed Framework
    • Customer Satisfaction
  • Subjective Factors 1) Necessity
    • Subjective Factors
  • Necessity
  • Consumer Attitude
    • Objective Factors 1. Price
  • Product Quality
  • Trust toward payment method
  • Service Quality
    • Hypotheses

Consumer decision making has five stages to make a choice of more than one option of products or services. According to the above literature review, we hypothesized that the following factors have influenced customer satisfaction and consumers' decision making to buy clothes online. Customer satisfaction is one of the most essential elements of customer retention, customer loyalty and product repurchase.

Bill Stinnett mentioned that more important than our need to be understood is our customers' need to feel understood, so the cause of customer satisfaction is product quality, customer service and more. The four key factors influencing customer satisfaction are product quality, service, on-time delivery and trust; can lead to creating customer loyalty. When customers are satisfied with these four components, they will trust online stores that they have ever bought from and will buy from them again in the future.

The sellers must provide the quality of the product and fully support them a good service and deliver it on time, these are the necessary factors to communicate with the customer by listening more than talking in 80:20 criteria. When we know what customers need, the customer became a loyalty customer and improve the online stores to match customer satisfaction. According to Bill Stinnett (2004), the definition of customer satisfaction in the book 'Think like your customer: a winning strategy to maximize sales by understanding how and why your customers buy'.

In addition, William et al., (2003) defined customer satisfaction in “customers are satisfied when their evaluations of service they received match or exceed what they expected”. Customer satisfaction and consumer decision making are controlled and influenced by the following factors to buy the clothes online in figure 2.5. Quality can be provided customer satisfaction to buy products; it is a key component of the company's competitiveness.

Figure 2.1 Theory of Reasoned Action (TRA)  Source: Ajzen and Fishbein, (1980)
Figure 2.1 Theory of Reasoned Action (TRA) Source: Ajzen and Fishbein, (1980)

METHODOLOGY

Research Setting

Sample & Data Collection

In-depth interview Questions

If the real product from the online stores is different from the picture on the website, can you accept it? How do you feel when you transact with the seller only with a confirmation message from the sellers. The above questions were used to capture the relationship between the independent variables and consumers' online purchase decision and customer satisfaction.

Subjective factors which are necessity and customer attitude and objective factors which are price, product quality, trust in payment method and service quality affect customer satisfaction and consumer behavior and purchase decision to make them repurchase the clothes online.

RESEARCH FINDINGS

Subjective Factors

  • Necessity
  • Consumer Attitude

I choose the online stores that have unique styles along with their own pattern and cut.” (Interviewee A, 26). I always go to online stores when I don't have time to shop outside and I need some relaxation to travel on the internet after I finish work.” (Interviewee C, 30). I predicted that the online stores are not much different from traditional stores because the products come from the same source from manufacturers.

I think that the physical stores are no different from online stores because all products are produced by the same suppliers. I think online stores are an intangible store, because I have not touched the products and do not know the quality of textiles. Good feedback from sellers and the model of the online stores will influence my purchasing decision because I look at the model to compare whether it fits my size and my style.” (Interviewee C, 30).

However, online stores are mostly intangible, which allows me to make a purchase without hesitation. But I can't trust online stores compared to physical stores because I can touch to prove the quality of the clothes. However, the model of online stores is, especially when the model suits my character.

There are only two respondents, who have no different attitudes towards the online stores and physical stores.

Objective Factors

  • Price
  • Product Quality
  • Trust toward payment method
  • Service Quality

I worry about the price and will check it from physical stores and online stores before buying. I think that quality and variety of products are the elements to make customers buy the clothes both physical and online stores, but the expectation of the online store's purchase is less than the physical stores. I think the quality of physical and online stores is the same, but the physical store is more advantageous because it can be touchable.

I can accept if the real product is different from the photo on the website, but I will not buy from this store again.” (Interviewee B, 28). I don't expect product quality from online stores because they can't touch compared to physical stores. I feel that the quality of products in online stores is not as good as other wholesale stores like Union Mall, Platinum, except for branded products and imported products.

I think that the product quality of online stores is the same as physical stores, but sometimes I feel that the product of physical store is more quality than online stores. I want to buy it from online stores that have the quality of the product and I don't care about them if they only present price but no quality. I can't accept if the real product is different from the picture, but I won't repeat purchases that are kept." (Interviewee I, 30).

It is too risky to shop online because many online stores have cheated the customers.

Customer satisfaction

The cheaper price, trust in sellers and good communication have made me buy again in the same online stores, but if another store has a variety of products, I look to buy those online stores." (Interviewee J, 31).I found that the respondents are satisfied if there is product variety, it is a matter of priority. Reliability, product quality and timely delivery are the next factors to make them repeat the purchase of the online store.

The results of this research will be helpful to understand consumer behavior and build strategies to reach the consumers, most influence and motivate the online purchasing behavior of Thai consumers.

Table 4.1 Summarize the result of females and males’ respondents
Table 4.1 Summarize the result of females and males’ respondents

DISCUSSION & CONCLUSION

  • Contribution of your study
  • Managerial Implication & Suggestion
  • Limitation
  • Future Research

Firstly, the online sellers must be sincerely appreciated to do business and communicate and interact with customers quickly. They can design the online store and make a marketing plan to achieve the market goal because online business is a remote interaction. They need to know the needs of the consumer to give them confidence towards payment. Secondly, customers must trust the quality of products and services to customers. This means that the sellers have to deliver the product quality and deliver to them on time.

Sellers should start online business from these channels to introduce customers to the store brand and make it more interesting to attract the target group to achieve customer satisfaction. Reviews from past customers also influence customer satisfaction and purchasing decisions, as they trust online sellers more when sellers have positive feedback that gives them confidence in the service. To make customers feel good and increase trust in the brand of online stores, online sellers must present real photos taken by themselves and a clear description of the product, i.e. product code, size, color and price.

I suggest that online sellers create customer trust with website/website and good communication with quick feedback about order and any problem, this affects online consumers buying decision and then they are happy to buy from this store. Sellers should create a brand image with a good website layout design, model the style or character of the clothes more successfully to build brand awareness and a good image on the website/website. To increase loyalty, sellers should also get quick feedback when customers face a problem with products; for example, they cannot wear a garment, sellers should offer a solution to change a larger size to meet customer satisfaction in online shopping and repeat purchase in the same stores.

Online sellers should understand the behavior of online consumers, communicate sincerely with consumers, and have quick feedback from the beginning to the end of the purchase process and after-sales service, when they encounter a problem, feel happy and recognize this online store when they want to go online shopping in the next time.

Gambar

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Figure 1.1 Thailand Internet users in 2013  Source: NECTEC, (2013)
Figure 2.1 Theory of Reasoned Action (TRA)  Source: Ajzen and Fishbein, (1980)
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