Malaysia Online culture
The internet in Malaysia started in the year 1995 conducted by MIMOS and Beta Interactive Services and rapid growth began in 1996(20,000 Internet user out of a population of 20million has access to internet proven by Beta Interactive Services, 1996) and the number continually grew to 2.6% in year 1998. Existence of Internet has brought new job opportunity and the ways of Malaysian consume product or service. [Paynter,J. &Lim,J. , 2001] “E-revolution” culture started as the internet growth rapidly in Malaysia, as it is a cyber space where information exchange between people, build communities and network, shape the future democratically, and introduce or promote a new way of doing business such a E-commerce inclusive of Business to business commerce transaction (B2B), Business to consumer commerce transaction (B2C) and Consumer to consumer(C2C).
Virtual shopping mall provides e-markets a low cost and convenience virtual space to cover the global market as well reach their client or partners in a faster and better ways. It benefits consumers with interactive content such as interactive communication, fast delivery, and self-customisation function allowed users to do comparison through online-shopping. Rich context on the internet provide more updated information compared to traditional promoting tools such as paper flyer and allow 2 way communications between the users and corporation for improvement and feedback. [Paynter,J. &Lim,J. , 2001]Purchase intention is a determinant of online shopping behaviour and one of the best research data to study future behaviour for market researches. Malaysia Internet shopping still classified at the adopting, early stage of development categories compare to another country like Japan, Taiwan and United states
2 Theoretical Background
2.1 Online Consumer behaviour
Consumer behaviour studies is the study of individuals, groups, or organisations and the process they use to select, secure, use, and dispose of products, services, experience, or idea to satisfy needs and the impacts that these process have on the consumer and society.[Hawkins, Mothersbaugh 2011] With the advance of communication technology, consumer behaviour has changed as they can purchase a customized products or services through internet.
Online editorial, newspaper, novel and e-book has replace physical newspaper ,as an online reference resource by scholar, working adult and most of them prefer receiving information from online resource. Students are no longer search information about a school or university from mailed catalogues; instead they can access all the related information about the university’s course through online or even apply through online. The students can even attend virtual classes or choose the study schedule by accessing into the University portal through online from their house. For example, UCTI website provide online application section allow visitor like student can apply and submit enquiry online as well as read the information on intakes and course.
Description: UCTI homepage snap short from UCTI official websites. Visitor can click on the icon Apple Online to apply into the university. Source: http://www.ucti.edu.my/[accessed 25th September 2011] The convenience of internet makes e-commerce a success in the market with the online business concept of Business to consumer commerce transaction (B2C) and Consumer to consumer (C2C). People who want to sell their old electronic gadget such as RAM, monitor or antique vase no longer advertise on the print media like newspaper, notification board or paper catalogues; instead they can sell these items via online sites like ebay.com or forum. Consumers are no longer visit physical book store; instead they can read or download to their electronic device like tablet, smart phone and personal desktop in digital format such as PDF format via online with or without scribe an authorize sites.
Borders online bookstores, MPH online bookstores and one of the pioneer online bookstores founder Amazon.com are the example of online bookstores which allow consumers to purchase book in digital format by just click a few button in front of the computer. Online movie and music download give consumer a choice to get the product once it release without lining up at the store to buy the album. They can download movie or music from authorize sites to their electronic device from anywhere through online payment. For example Apple product user can download their favourite music via i-tunes to i-phones, I-pad or Macbook by log in to their personal APPLE account to make the payment via online.
2.2 Buying intention
According to online Oxford dictionaries (2011), intention refers to a thing intended; an aim or plan to complete or achieve a particular task. Buying intention mean desires to consume a product or services cause by several factors of the people. A human characteristic can influence his or her buying intention. Another factor like environment can influence a person buying intention as well. For example, designer who works under APPLE product environment will be influence by the working culture and will have the intention to consume the APPLE product higher than another brand.
3 Statement of problem
According to Haque research on “online shopping in Malaysia is a new technology breakthrough since it has just begun to assault the Malaysia retailing sector with online service” to understand the factors influencing behaviour of consumer on online shopping[NargesDelafrooz, 2009].
According to NargesDelafrooz (2009), majority Malaysians such as youngsters were using the internet for information, social networking and communication and shopping activities as well. The growing of demand in educational sector has made Malaysia university students become one of the main stream online consumers because of their shopping interest and self-esteem or desires toward a different product or service due to the exposure of internet. The population of university student market segments become the potential in earning a greater income compare to other segments of population. The limitation of studies in examines online shopping behaviour of Malaysia university student’s become the challenge to find out the volume of e-commerce and the intention of Malaysia university student shop online. Consumer psychograph variable such as attitudes, interest, characteristic and lifestyles play a major role in effect the factors of online shopping behaviour. For example, a positive attitude consumer is easier to be targeted compared to a negative attitudes consumer toward a product or services.
There are numbers of negative attitudes among Malaysian towards online shopping. Therefore, it is significant to study the changes and factors influencing the changes and formation of attitude among Malaysian. A characteristic of consumers influence by demographic variable such as environment, age, income, gender and difference personality influencing the way their online shopping behaviour as well as buying decision making. They also use online shopping to survey information, convenience, 24-hours service, cheaper price; cost and time saving as their motive of conduct the online shopping. Security issues, vendor reputation, attitude problems, Malaysia culture, preference to the examine products, price, IT knowledge and payment option might be a part of the factors affect students online buying behaviour as well.[Paynter,J. &Lim,J. , 2001]
The purpose of conducting this research is to understand study and measure the influencing factors that affects purchasing attitude and purchase intention of Malaysia university student at Asia Pacific University College of Technology and Innovation. To understand the current trend of online shopping and behaviour of today consumer on their purchase behaviour on the internet compare to the physical store. Second, identify gaps and problem from the past research. The past research didn’t focus on a specific group on online shopping behaviour and their purchase intention. The result is too generalized and not critical enough and specific analysis on narrows down the market segmentation. The research data result was not providing the latest consumer behaviour trend on online shopping as the technology becoming sophisticated.
1.To investigate the demographic characteristic of UCTI student and how it affect their purchasing decision. 2.To understand why UCTI student prefer do purchase through online shopping 3.To investigate the Internet usage
H1. UCTI students have positive attitude towards online shopping H2. UCTI students have positive buying intention towards online shopping H3. UCTI students have positive trust in using e-transaction payment method H4. UCTI students have good knowledge in using internet for online shopping
7 Theoretical framework
Theoretical framework is a basic guide structure of a project to provide a simple term used in a study based on a theory with 3 independent factors representing the moderating factor, dependent factor and demographic factors. This study provides scholar, researcher, cyberpreneurs or online-marketers first-hand information and understands the specific needs of the university student market needs. It functions as a structure of a project and provides simple information for reader to understand.
8 Significance of the research
The significance of the research are able to keep the researcher updated about the current online market situation and understand the current consumer attitude such as potential consumer like university students and buying intention for future improvement on a particular product or service. It also provides scholar, researcher, cyberpreneurs or online-marketers first-hand information and understands the specific needs of the university student market needs on research a new product or services. For example, Apple Inc. provides educational prices for students who purchase online or physically on any Apple product like iPhone, MacBook Pro when they study at University or college partnership with Apple. At the same time, Apple can do more research on understanding the student market needs such as produce more education application or software like Keynotes, Mathboard and design
editing tools. It not only benefit the students but corporate as well. Besides, it also uses to measure the current needs and demand of online markets in Malaysia and compare the past and present of the market for future reference.
During the 1980’to 90’s in Malaysia before internet era, university students are depending on books from library or bookstore with limited time accessed to conduct their research or studies. The present Malaysian students can just access to any online bookstore available on the internet and purchase by just on click on it. The current demands and needs of university students have change from the past. It provides a new opportunity to the market and challenge to marketer to come out a new way of selling education product to the students. Identify the weakness and advantage of the online shopping market between the past and present as well the research done by another researcher to enhance and improvement the data of research.
Conclusion, all the research analysis in this particular chapter will be discuss on the next chapter.