This research was designed to explore and understand the factors that may motivate older people who are not users of online shopping platforms to shop online. The result shows that currently Thailand is becoming an aging society and the elderly have high monthly income even if they are at retirement age and they usually go online even though they are not users of online shopping platforms. From the analysis there are two important factors that can motivate the elderly who are not users to be users of online shopping platforms.
With the development of Internet almost 28 years ago, online shopping or e-commerce is one of the most important things that has developed rapidly. It was inevitable that online shopping would become an alternative way to buy goods and services. Even the growth of the online shopping today is growing very fast compared to the one in the past, but the number of customers who go shopping online in Thailand is gradually increasing compared to other countries.
When consumers feel uncertainty or fear about online shopping platforms, they may change their mind to go the traditional way instead, even if they want to buy products and services on the website first.
LITERATURE REVIEW
Online Shopping Worldwide
- Online Shopping in Thailand
- Online Shopping For Elders in Thailand
According to the Electronic Transactions Development Agency, the e-commerce market in Thailand is forecast to reach approximately $741 million in 2017, growing 12.4% compared to the previous year. It will help a startup and SME to start doing e-commerce business in Thailand for local products and services to grow their sales channels. According to Statista, Thailand's population is 68 million people, Thailand's e-commerce consumer is currently 12.1 million, and this number is predicted to grow by 15% within the next five years to 13.9 million in 2021 which is 24.5% of the total population represented.
According to Statista, electronics and media is currently the top e-commerce in Thailand and sales are forecast to increase 1.4 times from US$1.25 billion to US$1.77 in the next five years, as online sales of physical media (e.g. books, DVDs, games) is involved. , consumer electronics (e.g. TVs, stereo systems) and communications equipment (e.g. computers, smartphones, tablets). Fashion e-commerce is the second largest in terms of e-commerce revenue in Thailand and sales are expected to increase 2.5 times in the next five years, from $525 million or 17.8% of total e-commerce commerce revenue to $1.31 billion or 24.7% of total e-commerce revenue. commercial income. According to Statista, categorizing internet usage into age groups gives a better picture of the Thai e-commerce market.
There are currently 7.4 million elderly people living in Thailand and this number is expected to rise to 17.7 million by 2030 (Chunharas, 2009).
Online Shopping Behavior
- Trust Factor
- Risk Factor
- Convenience Factor
- Knowledge Factor
Trust is an important psychological factor that influences consumers' intentions to shop online. In an online shopping environment, the study found that trust is an important factor in reducing uncertainty and complexity of financial transactions. The psychological factor, in this case trust, is related to the protection of e-commerce websites.
This is an important and positive effect on consumers' attitudes towards online shopping (Ariff et al, 2013). And the trust factor is the main obstacle that prevents consumers from shopping online even when the protection level of personal information is low (Yörük et al, 2011). The study was conducted by Kumar & Dange (2014) with the aim of analyzing different dimensions of perceived risk, such as financial risk, that may influence non-online shoppers to shop online as consumers.
And another study found that financial risk has a negative impact on online shopping attitude because consumers fear financial loss and worry about security over online shopping (Babar et al, 2014). Risk perception is the important factor to build the relationship between non-users and motivation to purchase on online platforms (Gozukara et al, 2014). Product risk is related to the poor performance of a product when the performance of a product does not match the desired expectations of the consumer (Yeniçeri & Akin, 2013).
Convenience factor refers to online shopping is easier than traditional retail shopping due to ease of use, less time consumption, flexibility, less physical effort from browsing or searching for information such as product catalog on online platforms. online shopping (Darian, 1987). Furthermore, Bhatnagar and Ghose (2004) claim that convenience is one of the most important advantages for online shopping. A low-quality website design or the quality and quality of website information can be a deterrent for older consumers to shop on online platforms.
On the other hand, high website quality such as satisfaction, quality, and cognitive outcome can increase the value of the website by helping the consumer to shop on the online platform more easily (Li & Zhang, 2002). Furthermore, information quality or content quality has been found to be an important factor that makes a website successful (Liu & Arnett, 2000) and is a measure of e-commerce success (DeLone & McLean, 2004) .
Hypotheses Summary
Elders lack knowledge, no skills and no experience with the Internet, and some of them did not know how to search for information and shop on a website (Mann, 2005). H1: Improving trust factor on online shopping platforms has a positive effect towards motivation to buy products and services on online shopping platforms in Thailand. H2: Improving risk factors on online shopping platforms has a positive effect towards motivation to purchase products and services on online shopping platforms in Thailand.
H3: Improving the convenience factor on online shopping platforms has a positive effect on the motivation to purchase products and services on online shopping platforms in Thailand. H4: Improving the satisfaction factor on online shopping platforms has a positive effect on the motivation to purchase products and services on online shopping platforms in Thailand. H5: Improving the knowledge factor on online shopping platforms has a positive effect on the motivation to purchase products and services on online shopping platforms in Thailand.
The research calls for a quantitative research method to investigate the effects of various factors and measure the important factors that the elderly consider when deciding to purchase products and services online.
Sample Size
Questionnaire Design
Introduction” to introduce what the study will be explored but not specific because it will get bias data from the respondents
Screening Question” to filter out the person who is not the user of the platform, by using ordinal scale1 question
Specific Question” to see respondent’s interest and commitment about go shopping on online shopping platforms by using interval scales for 28
Demographic Question” to see the overview or the big picture of the respondents by using nominal scales for 2 questions
- Data Analysis
- Demographic Information
- Main Findings
- Factor Analysis
- Regression
- Hypotheses Confirmation
- Recommendations
- Limitations
- Future Research
In the second step, the results of the main findings of the questionnaire survey will describe consumers' motivation to shop for products and services on online shopping platforms. The first composite variable that can influence customers' motivation to purchase products and services on online shopping platforms is 'product authenticity guarantee'. These impact customer attitudes towards online shopping platforms and can portray a negative image on online shopping platforms.
The second composite variable that could influence customer motivation to purchase products and services on an online shopping platform is “accessibility.” In this case, the new composite variables derived from factor analysis are independent and the motivation to purchase products and services on an online shopping platform is dependent. The result of the regression analysis using composite variables from the factor analysis shown in Figure 4.11 explains that 56.3% out of 100% of people will be motivated to purchase products and services on online shopping platforms by two key factors, namely 'product authenticity guarantee'. ' and 'accessibility'.
The product authenticity guarantee variable can create a positive effect on the customer's motivation to buy products and services on online shopping platforms with 0.50. So, an improvement of the product authenticity guarantee policy in online shopping platforms will increase the motivation of customers to buy products and services online. Improving accessibility makes customers' lives easier so that they can shop anytime, anywhere, on any device on online shopping platforms, thereby increasing customers' motivation to purchase products and services online.
Many people and companies make a fortune from selling products and services online, and online shopping platforms have become a major channel. This means that they are a large group of potential customers who are ready for online shopping platforms and can be motivated to shop online. The main objective of this study is to study the main factors that motivate the elderly who are not users of online shopping platforms to go to buy products and services online in Thailand.
Therefore, this research is intended to find out among the 5 key factors - trust, risk, convenience, satisfaction and knowledge, which can motivate elderly people who are non-users of online shopping platforms to buy products and services online. The results of this study show that trust and convenience do have an effect on the elderly's perception before making a decision to purchase products and services on online shopping platforms. On the other hand, most of the elders got at least a credit card which is the payment channel on online shopping platforms but can cash on delivery method.
The online shoppers can verify the online shopping platforms from the whitelist of the registration with the department before making purchase transactions.
APPENDICES
Appendix A: Questionnaire
I prefer to buy products and services online if the platforms have a high level of security against hackers. I would buy products and services online if the platforms have a fraud control policy to protect the customer from fraudsters. I prefer to purchase products and services online when the platforms have a high level of privacy controls to keep consumers' personal information safe.
I would buy products and services online if the platforms have a delivery control policy that ensures that the ordered product will be sent to the customer to protect against non-delivery. I prefer to buy products and services online on a platform that guides me through the instructions to purchase the product. I prefer to buy products and services online, as shopping requires less physical effort.
I prefer to buy products and services online if the platforms clearly describe the information of the products and services. I prefer to buy products and services online because it removes the time constraint of shopping. I prefer to buy products and services online if the platforms offer follow-up service to help me track the issue.
I prefer to buy products and services online if the platforms have a good reputation as being reliable. I would buy products and services online if the platforms have return policies to guarantee shipping damage. I prefer to buy products and services online because it removes the limitation of shopping location.
