TABLE OF CONTENTS
Contents
CERTIFICATION ……………………………………………………………………………………………………………………………. 2
DEDICATION ……………………………………………………………………………………………………………………………….. 3
ACKNOWLEDGEMENT ………………………………………………………………………………………………………………….. 4
CHAPTER ONE: INTRODUCTION …………………………………………………………………………………………………….. 8
1.1 BACKGROUND OF THE STUDY ………………………………………………………………………………………………. 8
1.2 STATEMENT OF THE RESEARCH PROBLEM …………………………………………………………………………….. 9
1.3 RESEARCH OBJECTIVES ……………………………………………………………………………………………………….. 9
1.4 RESEARCH QUESTIONS ………………………………………………………………………………………………………. 10
1.5 RESEARCH HYPOTHESIS …………………………………………………………………………………………………….. 10
1.6 SIGNIFICANCE OF STUDY ……………………………………………………………………………………………………. 10
1.7 SCOPE OF THE STUDY ………………………………………………………………………………………………………… 11
1.8 LIMITATIONS OF THE STUDY ………………………………………………………………………………………………. 11
CHAPTER TWO: LITERATURE REVIEW …………………………………………………………………………………………… 12
2.1 INTRODUCTION ………………………………………………………………………………………………………………… 12
2.2 ONLINE PURCHASE BEHAVIOR. …………………………………………………………………………………………… 12
2.3 PRODUCT QUALITY……………………………………………………………………………………………………………. 13
2.4 BRAND IMAGE ………………………………………………………………………………………………………………….. 13
2.6 CONVENIENCE ………………………………………………………………………………………………………………….. 14
2.7 TRUST ……………………………………………………………………………………………………………………………… 15
2.8 PRICE ………………………………………………………………………………………………………………………………. 16
2.9 HYPOTHESES FOR THE STUDY …………………………………………………………………………………………….. 16
2.10 CONCEPTUAL FRAME-WORK ……………………………………………………………………………………………. 17
CHAPTER THREE: RESEARCH METHODOLOGY ……………………………………………………………………………….. 18
3.1 INTRODUCTION ………………………………………………………………………………………………………………… 18
3.2 SURVEY INSTRUMENT ……………………………………………………………………………………………………….. 18
3.3 OBJECTIVES OF THE STUDY ………………………………………………………………………………………………… 18
3.4 RESEARCH DESIGN ……………………………………………………………………………………………………………. 19
3.5 STUDY POPULATION …………………………………………………………………………………………………………. 19
3.6 PROCEDURES ……………………………………………………………………………………………………………………. 20
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3.7 SCOPE AND LIMITATIONS ………………………………………………………….. Error! Bookmark not defined.
3.8 METHODS OF DATA COLLECTION ……………………………………………………………………………………….. 20
CHAPTER FOUR: DATA PRESENTATION AND ANAYSIS …………………………………………………………………….. 20
4.0 SECTION A: DEMOGRAPHIC INFORMATION ……………………………………………………………………….. 21
4.1: TO WHAT EXTENT DO THE MOST FREQUENT FACTORS AFFECT ONLINE CINSUMER PURCHASE BEHAVIOUR? …………………………………………………………………………………………………………………………. 22
4.2 HYPOTHESIS TESTING ………………………………………………………………………………………………………… 24
4.2.1 Testing of H1: Product quality is the most frequent factor that affects online consumer purchase behavior ………………………………………………………………………………………………………………. 24
4.2.2 Testing of H2: Brand image is the most frequent factor that affects online consumer purchase behavior ……………………………………………………………………………………………………………………………. 25
4.2.3 Testing of H3: Convenience is the most frequent factor that affects online consumer purchase behavior ……………………………………………………………………………………………………………………………. 25
4.2.4 Testing of H4: Trust is the most frequent factor that affects online consumer purchase behavior. …………………………………………………………………………………………………………………………… 26
4.2.4 Testing of H4: Price is the most frequent factor that affects online consumer purchase behavior. …………………………………………………………………………………………………………………………… 26
4.2.5 Testing of H5: Nigerian customers are highly dissatisfied with the services provided by online marketers ………………………………………………………………………………………………………………………….. 27
4.3 CONSOLIDATED TABLE FOR TESTING OF HYPOTHESES ………………………………………………………….. 28
4.5 DISCUSSION OF FINDINGS ………………………………………………………………………………………………. 29
4.5.1 Discussion of Findings According to the Research Questions and Hypotheses ……………………. 29
CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS ……………………………………………………………… 31
5.1 Conclusion ……………………………………………………………………………………………………………………….. 31
5.2 Recommendation ……………………………………………………………………………………………………………… 31
REFRENCES ……………………………………………………………………………………………………………………………….. 32
APPENDIX …………………………………………………………………………………………………………………………………. 34
SAMPLE QUESTIONNAIRE …………………………………………………………………………………………………. 34
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ABSTRACT
The purpose of this research is to explore the factors that influence Nigerian online consumer purchase behavior. After a detailed relevant literature and theoretical framework on factors influencing Nigerian online consumer purchase behavior, researcher framed a well-structured questionnaire for collecting required information from a sample of 300 Nigerian customers out of which 217 valid responses received. The collected data were summarized, coded, and controlled by using SPSS 21.0 along with Microsoft Excel software packages and analyzed by using statistical tools like observance of percentile and correlation. Out of 217 respondents, 52.1 percent of Nigerian consumers stated product quality as the most frequent factor that affects their online purchase behavior as against just 23.5 percent opted trust. Brand image came down as a second priority with 44.7 percent as a factor that affects online consumer purchase behavior. Astonishingly, price came down with just 38.7 percent as a third priority, 37.3 percent convenience as their fourth priority to online consumer purchase. Out of 217 respondents, 43.3 percent of Nigerian customers are highly satisfied with the services that are provided by online marketers. The research confined only two capital towns’ viz., Jimeta and Yola of the Adamawa state in Nigeria, and the researcher enquired only general online purchase behavior of Nigeria without any product specificity. The outcomes of the study are useful to online marketers in the country to review the present and design their marketing plans to influence the online purchase behavior of Nigerian consumers. This is an extensive pioneering work on the extent to which certain factors influence Nigerian online consumer purchase behavior which is beneficial to both online marketers and to the academia for their unique purposes.
Keywords: Online Purchase behavior, Product quality, brand image, trust, convenience and price.
CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND OF THE STUDY
With the speedy development of technology and the increase in internet usage across the globe, people are no longer interested in word of mouth or physical interactions rather they prefer communicating and gathering of information through forum, chat rooms, blogs and new groups ( Fei 2011, 2011). Online business operations and e-commerce has inspired many businesses and companies to set up their business transactions over the internet. This singular act has made life easy for the common man. Recent data have shown that Nigeria has been ranked as number one in Africa and number eight in the world with the rate of sixty-three million internet users. Data for Facebook users alone rate up to sixteen million users in Nigeria. (Nigeria ranks No 1 in internet usage in Africa, 2016).
The internet is a platform for networking and also dissemination of information. One of the purposes of the internet is for purchasing of goods and services (Burrows, 2001). There are several websites that customers can access to purchase products that are for sale such sites are: Konga, Jumia, Asos and many more. Customers visit those websites, select the product, order the products, provide a location for delivery, and either make payment through credit cards or pay on delivery and those products gets delivered to the customer in the set location.
One of the cheapest ways entrepreneurs, marketers as well as companies could create an avenue in getting in contact with the huge customer base in a short span of time even in periods of world economic crisis is through online marketing (Insider, 2015). Online shopping has been revealed to offer additional satisfaction to modern day consumers who are in search of speed and convenience (Yu, T.& Wu.G,, 2007).
In most cases, customer purchase behavior can be regarded as the loyalty of the customer to that particular product or goods (H. Jr. Juhl, 2002.). This customer purchase behavior can be
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based on different elements such as product quality, trust, brand image, convenience, and price of that product which can also influence the customers’ behavior (J. J. Joseph Cronin, 2000). Facts have shown that research has been performed on the same topic in western countries, but very little research has been applied in Nigeria. For businesses online, it is important to know what factors influences online consumers purchase behavior when purchasing goods over the internet.
1.2 STATEMENT OF THE RESEARCH PROBLEM
Most potential consumers who purchase goods online are over a million plus and they are most times online anytime of the day regardless of where they are located. Since there are so many marketers who want their goods to be bought by potential consumers, it is very crucial that those marketers or companies understand what are their consumer needs and wants in regards to how competitive the business environment is. Since consumers are unable to have physical contact with their online marketers, it is important that online marketers examine and detect those certain factors that influence online consumers purchase behavior. Also, in order for online marketers to maintain an increase customer base level, it is important for them to know what extent certain factors that will be considered in this topic influence consumers purchase behavior. The problem of this research is: TO KNOW THE EXTENT TO WHICH CERTAIN FACTORS INFLUENCE NIGERIAN ONLINE CONSUMER PURCHASE BEHAVIOUR.
1.3 RESEARCH OBJECTIVES
The general objective of this study is to determine online purchase behavior of Nigerian consumers.
Specifically:
1. To identify those factors that influence online consumer purchase behavior
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2. To determine which online purchase factors are most frequent
3. To determine the extent to which the most frequent factors affect online consumer purchase behavior.
4. To determine the overall satisfaction levels of online customers.
1.4 RESEARCH QUESTIONS
Listed below are some research questions that this study will be examining.
Specifically:
1. Which online purchase factors are most frequent?
2. To what extent do the most frequent factors affect online consumer purchase behavior?
3. What are the overall satisfaction levels of online customers?
1.5 RESEARCH HYPOTHESIS
In this section, several hypotheses would be considered.
Specifically:
H1: Product quality is the most frequent factor that affects online consumer purchase behavior
H2: Brand image is the most frequent factor that affects online consumer purchase behavior
H3: Convenience is the most frequent factor that affects online consumer purchase behavior
H4: Trust is the most frequent factor that affects online consumer purchase behavior.
H5: Price is the most frequent factor that affects online consumer purchase behavior.
H6: Nigerian customers are dissatisfied with the services provided by online marketers.
1.6 SIGNIFICANCE OF STUDY
In Nigeria, online shopping or purchasing of goods by customers is on the increase due to the high rate of internet users and its population. The significance of this study is to enable marketers increase sales by first understanding the buying behavior of consumers who purchase goods online and also improve their marketing approach or strategy accordingly. This study will also benefit online marketers, customers that purchase online and those that do not purchase as well. Another significance of this study is to know what factors influences consumers purchasing behavior when purchasing goods online.
1.7 SCOPE OF THE STUDY
The research will be centered on Nigeria online consumers specifically in Adamawa State in determining those factors that influence their purchasing behavior. The scope of the research will include places such as banks, shopping complex areas, restaurants and the university campus in both Yola and Jimeta towns in Adamawa state. This research would be performed and completed during the span of two to three months in order to gather, evaluate and produce result
1.8 LIMITATIONS OF THE STUDY
There are problems and limitations that do arise in every research. These limitations could reduce the parse and efficiency of the study. One of those limitations was limited access to literature articles due to the limited time allotted for the completion of the study. Another limitation was the scope of the research. Five factors were selected amongst other online purchasing factors and only the two towns of Adamawa state ( Yola and Jimeta), which is too inconsequential to correctly access consumer online purchase behavior of Nigerian consumers. The unwillingness of Nigerian consumers to consent in answering the questions was another limitation that occurred in the cause of this research.
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