This thesis/dissertation does not contain writings by others unless specifically acknowledged as being from other researchers. My family who have been extremely patient with me over the years while studying this MBA and whose support has enabled me to take on this challenge.
INTRODUCTION
PROBLEM STATEMENT
RESEARCH QUESTIONS
OBJECTIVES
FOCUS OF THE STUDY
Apart from appealing to the time- and money-conscious shopper, e-shopping also provides a social arena in which shoppers can interact. The study will be limited to the social networking website, Facebook, as it will help with the purpose of identifying the role that social networking can have on online purchases.
LIMITATIONS OF THE STUDY
CHAPTER STRUCTURE
SUMMARY
INTRODUCTION
CONSUMER BUYING BEHAVIOUR
A psychological perspective to buying behaviour
Maslow's hierarchy (Kotler & Keller 2003) suggests that this is explained by one's needs being arranged from the most urgent to the least (with the most urgent forming the base of the pyramid and the least urgent the top). Their most pressing need is to satisfy their hunger needs (level 1), and in doing so, they have little or no concern for how others may perceive them (social needs, level 3 and esteem needs, level 4).
Consumer buying process
Finally, after the purchase has taken place, some form of post-purchase behavior will occur where the product is evaluated and a sense of satisfaction or disappointment is felt. By understanding these different stages, marketers and salespeople can best engage consumers.
FACTORS EFFECTING CONSUMER BUYING BEHAVIOUR
- Attitude
- Branding
- Customisation
- Gender
It is these features that will remain in the minds of consumers and create a degree of loyalty towards the product. It will be this satisfaction combined with consistency of the product that will begin to create brand loyalty and anchor the brand's position in the market (McCoy 2001).
ONLINE CONSUMER BUYING BEHAVIOUR
What is online shopping (e-commerce)?
One of the most important advantages of the Internet is its ability to connect entities around the world in real time. Because of this, the Internet can allow both businesses and people to interact with each other.
Shopping online versus in store
Similarly, online shopping benefits from consumers' anxiety being reduced as a result of their tangible experience with the product. As the number of shopping opportunities within a 10-minute cycle distance of the potential shopper increases, the positive impact on online shopping decreases (Farag et al., 2007).
FACTORS AFFECTING ONLINE BUYING BEHAVIOUR
- Age, socioeconomics and income
- The influence of social e-shopping
- Internet apprehension and website satisfaction
- Risk perceptions
2003b) hinted at the fact that online shopping is more prevalent in certain groups than in others. Another finding by North et al. 2003c) was that online shopping is attractive to time-conscious individuals and individuals who find it difficult to visit stores.
ONLINE BUYING IN SOUTH AFRICA
Potential for the South African Online clothing market
South Africa as a country is still relatively untouched compared to the developed countries in the Northern Hemisphere. Research by The Shopping Traveler shows that 77 percent of travelers spend most of their shopping money on clothing and shoes, and not on souvenirs (Craft, 2009).
Online clothing buying in South Africa
Common perceptions, about this emerging segment of the population regarding branded clothing, is that brands will thrive both among men and women. These may include community leaders, idol figures, television personalities and other trendsetters and will serve to raise the credibility of the brand and increase its appeal (van Eck et al. 2004).
SUMMARY
Finally, the research came to a point where it examined online shopping in South Africa and showed how the findings were consistent with research done elsewhere in some cases and different in others. The nature of online shopping for clothes in South Africa has shown a clear gap in the research and it is this gap that will be addressed by conducting an empirical study.
INTRODUCTION
STATEMENT OF THE RESEARCH PROBLEM
Access to reviews, as well as product and fashion advice, simplifies the shopping experience while providing the consumer with trusted peer opinions. Besides appealing to both money and time-conscious shoppers, this also provides a social arena to complete the shopping experience.
AIM AND OBJECTIVES OF THE STUDY
Aim
The problem facing potential online clothing sellers is identifying what consumers consider good value and what factors might exist to convince them of these factors for a particular site. Given the above research questions, it is now possible to indicate what the purpose of the research is.
Objectives
FOCUS
SAMPLING
Advantages of Snowball sampling
This allows researchers to access populations that are otherwise difficult to access, whether it is the result of circumstance or population rarity. A by-product of this is that the process is relatively cheap, simple and quick as only a limited amount of planning is required and only a small initial sample is needed and most of the burden of expanding the sample size is placed on the respondents. . .
Disadvantages of snowball sampling
After this, the limited control will also affect the representativeness of the study, as the researcher will probably not know the true distribution of the survey and will therefore be uncertain about the extent to which results can be generalized. With snowball sampling selected, the next step remaining is to determine the sample size.
SAMPLE SIZE
The survey is further compromised by sampling bias, as respondents will tend to nominate people they know and like as potential future respondents. It is possible that it may be difficult to draw conclusions beyond the actual sample (Maylor and Blackmon, 2005) in the case of snowball sampling, but the study is about online users and social network users, making snowball sampling a useful method.
DATA COLLECTION APPROACH
Facebook in South Africa currently has approximately three and a half million users in South Africa (the population) which, according to the table, means that a minimum of 384 potential respondents (the sample) must be reached. The major disadvantage of this approach is that the respondents are limited to those people with internet access, but as the study examines online behaviour, it is reasonable to exclude the responses of those unable to participate on this basis.
DATA COLLECTION INSTRUMENTS
This will lay the foundation for behavioral explanation and prediction regarding the respondents. Respondents are therefore expected to be literate, have internet access and, as a result of using Facebook, be active on social networks.
THE QUESTIONNAIRE AS A RESEARCH TOOL
To add to this, misinterpretation of questions is also possible and cannot be clarified by the researcher (Gray 2004). The disadvantage is that answers are lower in mailed questionnaires and doubts of the respondents cannot be clarified.
QUESTIONNAIRE DESIGN
QUESTIONNAIRE PRETESTING AND VALIDATION
Pretesting the questionnaire
Validation of the questionnaire
ADMINISTRATION OF THE QUESTIONNAIRE
The onus rests on the respondent to return the questionnaire which gives rise to low response rates and which the ability to. Reminders were then sent periodically using the same channels as the questionnaire in an attempt to increase response rates (Gray 2004).
DATA CAPTURING METHODS
Potential respondents can be contacted at various times of the day and throughout the week.
DATA ANALYSIS METHODS
Analysis and presentation of data
All collected data will be statistically analyzed using SPSS and presented in the next chapter using descriptive and inferential statistics. All analyzes will be done according to the 5 objectives defined at the beginning of the chapter.
SUMMARY
The aim of the study will therefore be to explain consumer behavior specifically in the online clothing industry in South Africa. The focus of the data analysis will be a simple table, crosstab and summaries that highlight relevant responses.
INTRODUCTION
DEMOGRAPHIC PROFILE OF THE RESPONDENTS
Furthermore, the majority of these respondents were employed full-time and earn more than R25 000.00 per month as middle and senior managers.
INTERNET BEHAVIOUR OF THE RESPONDENTS
How many years have respondents had internet access
The results are obviously influenced by the fact that respondents were required to have internet access to take part in the survey, however, it is clear that the longer the period the greater the number of respondents with internet access.
Respondents who had made online purchases
ANALYSIS OF OBJECTIVES
- Age of online clothing shoppers
- Gender of online clothing shoppers
- Race of online clothing shoppers
- Monthly income bracket of online clothing shoppers
- Relationship between monthly clothing expenditure and potential
- OBJECTIVE TWO: TO DETERMINE ONLINE CLOTHING
- Formal versus informal clothing purchases made online
- Items previously purchased by online clothing shoppers
- OBJECTIVE THREE: ATTITUDES TOWARD ONLINE
- Would you consider buying clothing online in future
- What items would you consider buying
- Reasons not to buy clothing online in future
- OBJECTIVE FOUR: TO ESTABLISH THE IMPACT SOCIAL NETWORKS
- Social network feedback increases my confidence when buying online
- What feedback would you be interested in reviewing from your
- OBJECTIVE FIVE: TO ESTABLISH WHETHER CUSTOMISATION
- Relationship between age and inclination to buy customised clothing
- Relationship between race and inclination to buy customised
- What would you consider the most important customisation options?
- Would you be willing to pay a premium for customised clothing
Indians (5%) had the second largest percentage of respondents who participated in online clothing shopping. Of the respondents who participated in online clothes shopping, the majority (73%) of them would consider buying clothes online again in the future.
SUMMARY
Of those respondents who were willing to buy clothes online if they were customized, an overwhelming majority (80%) were willing to pay a premium for the service.
INTRODUCTION
DEMOGRAPHICS
At the time the questionnaire was distributed, the researcher was 29 years old and as such it seemed reasonable that the majority of his acquaintances would be between 25 and 34 years old. People who are approaching their thirties or have recently passed their thirties can be considered to be reaching a point in their lives where they are upwardly mobile, indicating that the first two needs have been met and that social needs are next on the agenda to stand.
OBJECTIVE ONE: TO CREATE A PROFILE OF ONLINE SHOPPERS IN
- Age of online clothing shoppers
- Gender of online clothing shoppers
- Race and online clothing shopping
- Employment status of online clothing shoppers
- Monthly income of online clothing shoppers
- Relationship between monthly clothing expenditure and potential
- Formal and informal online clothing purchases
- Items purchased by online clothing shoppers
- Respondents willingness to repurchase clothing online
- Clothing items likely to be repurchased by online clothing shoppers
Hansen and Jensen (2008) revealed through their studies that men and women show differences in their online shopping behavior. Singh (2001) identified a problem facing online shopping in South Africa is that a large proportion of the population is without access to the Internet.
OBJECTIVE FOUR: TO ESTABLISH THE IMPACT SOCIAL NETWORKS
The ability of social network feedback to increase confidence levels in
Webchek (1999 cited in North et al. 2003c) found that South African shoppers experienced indecision before purchasing online based on their concerns about reliability. This statement is consistent with both the findings of this study and those of North et al. 2003c) again both experience and brand image can be used to overcome these problems.
Use of social network feedback when making online purchases
Social network feedback of interest to respondents
OBJECTIVE FIVE: TO ESTABLISH WHETHER CUSTOMISATION
Customisation options most valued by online clothing shoppers
However, the results of this study suggest a different bottom line, as respondents seem to place value on all the customization options offered when it comes to choosing clothing customization options. Wind and Crook's (2006) findings were consistent with this study's findings that consumers place value on different customization options.
Customisation effect on price sensitivity
Matzler et al., (2007) believe that companies are currently facing the challenge of how to shift their production and marketing strategy from identifying and addressing target groups to creating individually tailored offers. In fact, they agree so strongly that they have gone so far as to suggest that modern consumers, with their comparative shopping and wealth of information, are no longer recipients of products and services, but have become a necessary part of research and development, production and marketing.
SUMMARY
INTRODUCTION
RESEARCH IMPLICATIONS
CONCLUSIONS, IMPLICATIONS AND RECOMMENDATIONS
- Implications of the profile of online shoppers
- Implication of online shopping patterns
- Attitude toward online shopping
- Influence of customisation
To instill greater confidence in customers, suppliers can do one or all of the following. Another means of gaining consumer trust is again to set up micro-stores in key areas that allow the consumer to have a tangible experience with the product in store before making a purchase online.
FURTHER RECOMMENDATIONS ARISING FROM THE STUDY
Customization as an option can also create a social element around the shopping experience as it allows customers to design their own product as it were, it is also something new, meaning consumers will be happy to discuss their findings with others friends and colleges at social gatherings. A less obvious benefit to the seller would be that by allowing customers to design their own products and thus achieve an element of exclusivity, an added value is created for which the seller is able to charge a premium.
LIMITATIONS OF THE STUDY
- Sampling method employed and lack of demographic diversity
- Limited scope
- Questionnaire format
- Current available literature
- Social desirability bias
- Lack of respondent segmentation
The figure shows that the researcher should be the center of the study as they are the initial distributors of the questionnaire. The unique nature of this study meant that there was only limited information about various aspects of the study.
RECOMMENDATIONS FOR FURTHER RESEARCH
In the future, it is recommended that researchers further break down the demographic groups of respondents in order to gain a more complete understanding of their individual preferences and purchasing behaviors. It is recommended that further research be conducted with an emphasis on qualitative research to allow the unique attitudes of respondents to be understood.
SUMMARY
Qualitative analyzes will allow respondents to express themselves more accurately and provide a deeper understanding of the domains being explored. Journal of Family Ecology and Consumer Sciences, vol. 2003), Cybershopping: Concerns of the South African Consumer.
