biljana lukic_master thesis_consumers behaviour towards online shopping of electronics in bosnia and...
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CONSUMERS BEHAVIOUR TOWARDS ONLINE SHOPPING OF ELECTRONICS IN BOSNIA AND HERZEGOVINA MAGISTARSKA TEZA PONAŠANJE KUPACA PRILIKOM ONLINE KUPOVINE ELEKTRONIČKE ROBE U BOSNI I HERCEGOVINI May 2014TRANSCRIPT
AMERICAN UNIVERSITY IN BOSNIA AND
HERZEGOVINA
AMERICAN SCHOOL OF ECONOMICS
BILJANA LUKIĆ
MASTER THESIS
CONSUMERS BEHAVIOUR TOWARDS ONLINE SHOPPING OF
ELECTRONICS IN BOSNIA AND HERZEGOVINA
MAGISTARSKA TEZA
PONAŠANJE KUPACA PRILIKOM ONLINE KUPOVINE ELEKTRONIČKE
ROBE U BOSNI I HERCEGOVINI
MAY, 2014
AMERICAN UNIVERSITY IN BOSNIA AND
HERZEGOVINA
AMERICAN SCHOOL OF ECONOMICS
BILJANA LUKIĆ
MASTER THESIS
CONSUMERS BEHAVIOUR TOWARDS ONLINE SHOPPING OF ELECTRONICS IN
BOSNIA AND HERZEGOVINA
MAGISTARSKA TEZA
PONAŠANJE KUPACA PRILIKOM ONLINE KUPOVINE ELEKTRONIČKE ROBE U
BOSNI I HERCEGOVINI
MAY, 2014
AUBIH Mentor………………………………………………………………...Enis Džanić, PhD
Master Thesis Project has……………………………………………………………… 51 pages
Master Thesis Project Number………………………………………………………__________
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Acknowledgement
I would like to express my gratitude to my mentor Professor Dr. Enis Džanić for the
useful comments, remarks and engagement through the learning process of this master thesis.
Furthermore I like to thank the participants in my survey, who have willingly shared their
precious time during the survey. Also, I would like to thank my loved ones, who have supported
me throughout entire process.
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List of Figures
Figure 1 Gender ............................................................................................................................ 14 Figure 2 Age ................................................................................................................................. 15 Figure 3 Education ........................................................................................................................ 15 Figure 4 Income ............................................................................................................................ 16
Figure 5 Duration of online shopping ........................................................................................... 16 Figure 6 Price advantage ............................................................................................................... 17 Figure 7 Free delivery charge is a price advantage when I shop online ....................................... 18 Figure 8 Product price is important to me when I shop online ..................................................... 18 Figure 9 I am willing to pay higher price for product that is not available in ordinary shops .... 19
Figure 10 Free gift is a price advantage when I shop online ........................................................ 19 Figure 11 I will not purchase the product when the price is not acceptable to me when I shop
online............................................................................................................................................. 20 Figure 12 I shop online as I do not have to leave home for shopping .......................................... 20 Figure 13 I shop online as I can shop whenever I want ................................................................ 21 Figure 14 I shop online as I can get detailed product information online .................................... 21 Figure 15 I shop online as I get broader selection of products online .......................................... 22
Figure 16 Online shopping gives facility of easy price comparison ............................................. 22 Figure 17 I shop online as I get user/expert reviews on the product ............................................ 23 Figure 18 I shop online as I can take as much time as I want to decide ....................................... 23 Figure 19 I use online shopping for buying products which are otherwise not easily available in
the nearby market .......................................................................................................................... 24 Figure 20 Online shopping makes my shopping easy .................................................................. 24 Figure 21 Online shopping procedure is cumbersome and frustrating ......................................... 25
Figure 22 I feel that my credit-card details may be compromised and misused if I shop online . 25 Figure 23 I feel that my personal information given for transaction to the retailer may be
compromised to 3rd
party .............................................................................................................. 26
Figure 24 I might not get what I ordered through online shopping .............................................. 26
Figure 25 It is hard to judge the quality of merchandise over Internet ......................................... 27 Figure 26 Finding right product online is difficult ....................................................................... 27 Figure 27 If I shop online I cannot wait till the product arrives ................................................... 28
Figure 28 I cannot get to examine the product when I shop online .............................................. 28 Figure 29 I might not receive the product ordered online ............................................................ 29
Figure 30 I purchase online only when I can return the product without any frills or strings
attached ......................................................................................................................................... 29 Figure 31 I do not purchase online if there is no money back guarantee ..................................... 30 Figure 32 Using Internet for online shopping is easy ................................................................... 30 Figure 33 Shopping online is fun and I enjoy it............................................................................ 31 Figure 34 I will have no problem in shopping online if I get to know that my friends and relatives
are doing it without any problems ................................................................................................ 31
Figure 35 What is the Internet the mostly used for ....................................................................... 32 Figure 36 How many times have you bought electronic goods over the Internet ....................... 32
Figure 37 How much do online buyers spend on online shopping of electronic goods per month
....................................................................................................................................................... 33 Figure 38 Crucial factors that affect online buyer’s decision making .......................................... 33 Figure 39 The way that online buyers find the sales channels ..................................................... 34 Figure 40 The main barriers which keep people away from shopping online .............................. 35
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Table of content
Acknowledgement .......................................................................................................................... ii
List of Figures ................................................................................................................................ iii
Abstract ........................................................................................................................................... 1
1. INTRODUCTION...................................................................................................................... 2
1.1. Consumer behaviour ............................................................................................................. 2
1.1.1. Online decision making process .................................................................................... 3
1.1.2. Problem Recognition ..................................................................................................... 4
1.1.3. Information collecting .................................................................................................... 4
1.1.4. Evaluations of alternatives ............................................................................................. 5
1.2. Factors influencing consumers’ behaviour toward online shopping .................................... 5
1.2.1. Subjective factors ........................................................................................................... 6
1.2.2. Objective factors ............................................................................................................ 7
1.3. Hypothesis development ..................................................................................................... 10
1.3.1. Individual demands and online consumers’ purchase behaviour ................................ 10
1.3.2. Consumers’ attitude and online consumers’ purchase behaviour ................................ 11
1.3.3. Price and consumers’ purchase behaviour ................................................................... 11
1.3.4. Quality.......................................................................................................................... 12
1.3.5. Web Trust and online consumers’ purchase behaviour ............................................... 12
1.3.6. Online consumers’ previous purchase decision and repeat purchase behaviour ......... 12
2. METHODOLOGY .................................................................................................................. 13
3. RESULTS ................................................................................................................................. 14
3.1. Discussion ........................................................................................................................... 35
3. CONCLUSION ........................................................................................................................ 38
Literature Review ........................................................................................................................ 40
References ..................................................................................................................................... 47
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Abstract
The main goal of this research is to examine customer behaviour toward online purchase
of electronic goods in Bosnia and Herzegovina. There have been many studies which have
investigated the arena of on-line shopping, but relatively few have focused on on-line shopping
behaviour in Bosnia and Herzegovina. The main research question in thesis is how consumers
behave while shopping electronics online and which factors influence their decision making.
Primary data will be collected through the self-administrated questionnaire that would be filled
out by respondents in Bosnia and Herzegovina.
Key words: online shopping, consumer behaviour, e-commerce, electronics, decision making
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1. INTRODUCTION
Traditionally, consumers have to go to ordinary stores to buy what they want; the
distinctive characteristic between online shopping and traditional shopping is that consumers
need not to go to a physical store, but make their choices base on what they see on the internet, so
it is useful to discover the factors that might affect online purchasing behaviour, either positively
or negatively. In the era of globalization electronic marketing is a great revolution. Over the last
decade maximum business organizations are running with technological change. Online shopping
or marketing is the use of technology (i.e., computer) for better marketing performance. And
retailers are devising strategies to meet the demand of online shoppers; they are busy in studying
consumer behaviour in the field of online shopping, to see the consumer attitudes towards online
shopping of electronic goods.
1.1. Consumer behaviour
“Consumer behaviour is the study of individuals, groups, or organizations and the
processes they use to select, secure, and dispose of products, services, experiences, or ideas to
satisfy needs and the impacts that these processes have on the consumer and society. “ (Kuester,
2012). Consumer decision making means a consumer make a choice between more than one
option of goods or services. The study of consumer decision making concerns how consumer
make decision between those alternatives (Peter and Olson, 1999). A large amount researches
about consumer decision making put the focus on the cognitive process. Consumers decision
making process was described as complicated with many factors generating problem recognition
before a series of actions was initiated to reach a result (Erasmus et al., 2001).
Consumer decision making process describes the steps of a consumer’s decision making.
Consumers first identify their needs and then collect information, evaluate the alternatives and
finally make the purchase decision. All these actions are determined by both psychological and
economic factors, and are affected by environmental factors like cultural, group, and social values
(Klein and Yadav, 1989).
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In the psychological aspect, consumers are viewed as irrational, impulsive and passive when
making decision (Zaichkowsky, 1991). Some psychologists presume consumers would use
rational shortcuts to make decisions. They think that consumers are not perfect decision makers
and their minds are limited to handle and recall the information.
For the economical perspectives, the Utility Theory anticipated that consumers make decisions
based on the expected outcomes of their decisions. In this model consumers were viewed as
rational actors who were able to estimate the probabilistic outcomes of uncertain decisions and
select the outcome which maximized their well-being (Fishburn, 1968).
1.1.1. Online decision making process
The process of online purchase behaviour consists of several steps and it is similar to
traditional shopping behaviour (Liang and Lai 2000). For instance, consumer recognize the need
for buying some product (book), they refers to the internet to buy online and start to search for
the information and look for all the alternatives and finally make a purchase which best meets
their needs. Before making final purchase consumers are bombarded by several factors which
limits or influence consumers’ final decision.
Goldsmith and Goldsmith (2002) found that experienced online shoppers have more trust and
better feeling regarding online service than non-experienced shoppers who had no online
shopping experience before. Also, after having considered the risks and having understood them,
the experienced online shopper are less risk reluctant than non-experienced shoppers (Donthu,
1999). Therefore, it is becoming more and more important for online sellers to gain online
consumers’ trust. Those studies have been used to explain consumers’ decision making, but there
was few research investigating the underlying factors affecting different consumers’ decision
making. Therefore a study that investigates such factors is needed to understand the justification
of consumers’ purchasing decision making.
Consumers’ online shopping behaviour is based on the manifestation of online sellers website,
the photos of products but not an actual real product (Lohse and Spiller 1998; Park and Kim
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2003). Due to the increasing amount of online sellers, the competition among sellers on the
internet will become more and more intense. In order to distinguish themselves, it is useful for
sellers to find out what factors affect a potential consumer’s online purchasing behaviour.
1.1.2. Problem Recognition
The intention of a consumer to solve a problem depends on the level of the discrepancy
between the desired and present situation and the relative importance of the problem. The
recognition of a problem may be caused by internal factors like the person’s financial situation
and also external factors for example advertisements. Internet marketing stimuli can be used in
triggering consumers’ needs. Thus, online sellers can capture potential consumers at this stage by
predicting consumers’ needs and problems (Bulter and Peppard, 1998).
The review of empirical studies has embodied different factors which influence online
purchasers’ behaviour. The antecedents of online purchase include many attitudinal components;
for example, attitude towards online shopping and perceived risk of an online purchase.
Consumers’ online shopping experiences, website and fulfillment of quality expectations are
deemed as the major components to successful online transactions. In essence, our interest is in
discovering the factors affecting consumers’ intent to buy online as well as in quantifying their
relative importance. Specifically, through surveying consumers based on the literature, we are
interested in identifying and rank-ordering factors affecting intent to buy online in Bosnia and
Herzegovina.
1.1.3. Information collecting
After a consumer recognizes a problem or a need, he/she will start collect information to
solve the problem (Jobber, 1998). It is critical for online sellers to know and understand the
online decision making process and focus on how to attract consumers that are searching for
information and provide what they want. Previous findings stated that internet usage has
positive effects on consumers’ online shopping attitude and intention to shop online (Dennis, et
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al. 2002). Potential online customers will use the internet as a platform to collect information
and they tend to have positive attitudes on online shopping. Previous studies also supported that
a consumers innovativeness will affect his/her intention on shopping online directly (Citrin et al.
2000). Therefore, in this stage, the information collecting stage, consumers’ innovativeness and
their internet usage are positively influencing consumers’ attitude on online shopping.
1.1.4. Evaluations of alternatives
After collecting information, consumers will evaluate between different alternatives in
order to make a decision of purchase. In traditional decision making process, consumers
evaluate the alternatives by evaluating the performance of the product or service by considering
the cost of purchase and concerns the effects of the purchase on social norms and relationship
with other people and how the products are related to individual (Jobber, 1998). When
consumers are evaluating the alternatives during online shopping, privacy is an important factor,
the security of the transaction is important to affect consumers’ decision.
1.2. Factors influencing consumers’ behaviour toward online shopping
The main theme of the study is to know the factors that influence the consumer’s
attitudes and behaviours towards online shopping of electronics, especially in Bosnia and
Herzegovina. In the typical online shopping process, when potential consumers recognize a need
for some merchandise or service, they go to the Internet and search for need-related information.
However, rather than searching actively, at times potential consumers are attracted by
information about products or services associated with the felt need. Then, they evaluate
alternatives and choose the one that best fits their criteria for meeting the felt need. Finally, a
transaction is conducted and post-sales services provided. Online shopping attitude refers to
consumer’s psychological state in terms of making purchases on the Internet. Both subjective
factors and objective factors affect consumers’ purchasing behaviour towards apparel when
shopping online, and also affect the repeated purchasing behaviour of online consumers.
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1.2.1. Subjective factors
The subjective factors affecting consumers’ purchase behaviour mainly relate to the
consumers’ subjective consciousness, both positive and negative. Subjective factors are affected
by external environment or decided by individual demands which means that different
consumers will have different reactions. Consumers who are easily affected by the external
environment will have a considerable impact on cognition (Alexandre and Dennis, 2006).
Consumers’ personality will also affect their purchasing behaviour and decisions.
1.2.1.1. Individual demands
There were several demands for consumers to shop online. One of the demands is that
online shopping can save time for consumers (Hawkins, DI Hawkins, Best, Coney 2003). And in
Hong Kong, modern which appreciates time efficiency, saving time is important to people in all
aspects including shopping. Thus more and more people in Hong Kong choose online shopping
rather than traditional shopping. Besides, the time of online shopping is flexible which allows
consumers to carry out online shopping activities any time at any place (Harrell G.D. &
McConocha D.M. 2007). Almost all the online stores operate 24hours basis and this is more
convenient to consumers.
1.2.1.2. Consumers Attitude
Consumers who are willing to try new things have higher risk bearing ability than those
conservative ones. Since the online shopping risk is thought that higher than traditional shopping
in ordinary stores, almost all online consumers are willing to try new things (Martinsons M.G.
2008).
Consumers are able to shop online more and more efficiently due to the rapid development of
internet technology which provides a more and more advanced online shopping platform to
consumers. The technology acceptance model (TAM) (Childers et al. 2001; Koufaris 2002;
Gefen, Karahanna, and Straub 2003) stated two significant factors that affect an individual’s
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attitude and intention to use new technology, they are the ease of use and usefulness (Davis
1989). Lately, the enjoyment has been added to the TAM model (Heijden 2004). Both the
utilitarian and hedonic aspects are viewed as relevant to consumers’ acceptance of online
shopping in the TAM model (Childers et al. 2001), for example the enjoyment of online
shopping and the usefulness of online grocery shopping they refer to hedonic and utilitarian
aspect respectively. The study proposed two things. One is that utilitarian aspect of online
environment is crucial for online shopping attitudes and hedonic aspect is evenly significant.
Through the study on the behaviour of online bidders in online auctions, Angst and colleagues
(2008) found out that consumers’ decisions were influenced by hedonic fulfillment. Also, it was
found that online consumers were related to their need for excitement and uniqueness; positive
sociality; online deal searching and involvement with a product class. Their motivation to shop
online was associated with fun (Wolfinbarger and Gilly, 2001).
1.2.2. Objective factors
1.2.2.1. Price
Actual prices are the discounts or surcharges relative to price expectations, according to
prospect theory (Tversky & Kahneman, 1991); this perception affects the demands for a firm’s
product, and hence its profitability.
Consumers have a variety of prices in their memory against which they evaluate the current price
of a product. The upper price limit is the price above which the consumer considers the product
as expensive or belongs to a different sub-category, while the lower price limit is the price below
which the consumer considers the product to be of poor quality. The acceptable price range is the
difference between the two limits. In addition to price uncertainty, the width of the acceptable
price range is determined by the customer’s price consciousness (Widrick and Sorce 1991), price
knowledge (Kosenko and Rahtz, 1988), or purchase frequency (Urbany and Dickson
1991). The above studies suggested that occasional buyers (presumably with higher price
uncertainty) have a wider range of acceptable prices as well as a higher midpoint than regular
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buyers. The degree that consumers distinguish and react to price levels and price changes is price
sensitivity (Goldsmith et al, 2005). Price sensitivity can works as an indicator of how much a
consumer is willing to pay. Therefore the price has an important effect on consumers' purchase
behaviour and as a result on sales and profits of the business (Han et al, 2001).
1.2.2.2. Quality
Quality means providing pleasure to consumers, not just protecting them from annoyance
(Garvin 1987). Quality can also be regarded as one of the key components of a business’
competitive advantage. Thus, the quality of products or services is important to a business
(Foster and Sjoblom, 1996). There are five approaches to define quality: the transcendent
approach, the product-based approach, the user-based approach, the manufacturing-based
approach and value-based approach (Garvin 1984). The transcendent approach assumed quality
is both absolute and generally identifiable. The product-based approach states that the
differences in the quantity of ingredient or attribute of a product reflect in divergence in quality
of that product. The user-based approach states quality is the degree of how a product or service
meets or go beyond consumers’ expectations. The manufacturing-based approach defined quality
as conformance to requirement. That means how a product or service meets a certain design
standards. Finally the value-based approach considers quality with performance at acceptable
price or acceptable cost. Consumers that are interested shopping enjoyment are positively liable
toward hobby, quality and impulse orientations when making online purchase. Different form
traditional shopping at ordinary stores, inline shopping does not allow consumers to physically
judge the quality of the product. That means consumers can only rely on the pictures and
information on the online sellers’ website to judge the product quality. They also evaluate
product quality by reviewing sellers’ credibility, feedback, products quantity and variety (Lala
V., Arnold V., Sutton S. G., & Guan L, 2002).
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1.2.2.3. Web Trust towards online shopping environment
Buyers and sellers develop a degree of trust between each other. Sellers should trust their
customers in that they are able to choose goods and services, purchase them, and pay for them.
On the other hand, customers should trust sellers that they can provide their needed goods and
services and are able to distribute (or deliver) them if necessary (Zargar, 2001). To maintain the
business relationship and reach the goal between sellers and buyers, trust is a necessary factor.
When people trust each other, it means that they keep their promises they made during their
business relationship.
In the virtual market environment, buyers usually see pictures of their goods to be purchased,
not the goods themselves. Many promises about the quality of goods and services are made. In
the e-commerce environment, since it is very hard to take legal actions against sellers or
customers in case of any fraud or dispute, therefore, trust is highly important in conducting e-
business transactions. When the consumer is placing an order in the internet in which he or she
needs to provide financial information and other personal data, enough trust is needed to carry
out the transactions to carry on (Eggert, 2006).
Therefore, trust can be regarded as the foundation of trade and it is crucial in many economic
exchanges, especially in the online environment (Gefen, Rose, Warkentin & Pavlou, 2005;
Hoffman, Novak & Peralta, 1999). The success of e-commerce needs consumers to trust the
virtual environment.
Yoon (2002) recognized four factors as the components of web trust. They include transaction
security, website property, navigation functionality, and personal variables. Online trust showed
very similar responses to its antecedents as web-site satisfaction except for site properties which
was significant to web-site trust only and for navigation functionality which was significant for
web-site satisfaction only. This means that is more important to increase consumers’ trust
towards an online seller than emphasize the general image of the web site is more important
than emphasizing the functionality of the site. Also, refund policy and risk freeness of online
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transaction affect consumers trust as well. Trust can also be gained through positive experience
between online buyers and sellers. This study showed that web trust can affect online-purchase
decision (Yoon, 2002).
1.3. Hypothesis development
This research is going to focus on the consumer behaviour towards online buying of
electronics. According to the report for 2012 by Agency of Statistic of Bosnia and Herzegovina
there were 2.189.940 Internet users in Bosnia and Herzegovina, with 57% Internet penetration.
The aim of this research is to explore factors affecting consumer decision whether to buy
electronic goods online or not. The main hypotheses in this research are:
H0: There is a relationship between factors affecting consumer behaviour and online shopping
H1: Individual Demands have positive influence on online consumer purchase decision
and behaviour.
H2: Consumers attitude has influence on online consumer purchase decision and behaviour.
H3: Reasonable price strategy has positive influence on online consumer purchase decision and
behaviour
H4: Product quality has positive influence on online consumer purchase decision and behaviour.
H5: Web trust has positive influence on online consumer purchase decision and behaviour.
H6: Online consumer purchase decision and behaviour has positive influence on repeated
purchase bahaviour.
1.3.1. Individual demands and online consumers’ purchase behaviour
The platform of e-commerce provides consumers a chance to meet their shopping
demands by sitting in front of the computer and shop at home. And this also satisfies shopping
demands of those consumers who prefer to stay at home rather than visiting ordinary stores. For
those who are price conscious, online shopping reduces the price indirectly by saving the
transportation cost (Wonseok Oh, 2002). Besides, online shopping is an alternative for
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consumers to purchase sensitive goods that may cause inconvenience when purchasing in
ordinary store (Cameron & Galloway, 2005).
Since there are no limitations regarding opening hours of online stores, online shopping can
satisfy consumers’ impulses on shopping. And this also satisfies the demands of consumers who
have no time to shop at physical stores, in which their leisure time after work or school do not
match the opening hours of physical stores (Chu & Liu, 2007).
When facing the difficulties of gaining product information, consumers tend to choose online
shopping to solve them. For instance, consumers may find difficulties to know which physical
store in their city have the product they want and sometimes even there is no physical store in
their city selling what they want (Chu & Liu, 2007). And therefore the hypothesis H1 was drawn:
H1: Individual Demands have positive influence on online consumer purchase decision
and behaviour.
1.3.2. Consumers’ attitude and online consumers’ purchase behaviour
Consumers’ decisions were influenced by hedonic need fulfillment (Angst, 2008). Their
happiness relates to the shopping process itself rather than the result and means that outgoing
person tend to shop at ordinary stores and enjoy shopping. Therefore a shy person who is not
good at communicating with other people may tend to shop online as he/she can avoid in person
interaction with others. As it is not necessary for consumers to interact with others face to face,
this may attract introverts to shop online. And therefore the hypothesis H2 was drawn:
H2: Consumers attitude has influence on online consumer purchase decision and behaviour.
1.3.3. Price and consumers’ purchase behaviour
Many consumers use online auctions to search for rare and unusual product, like those
products that are limited edition. Also they use online auctions to find quality goods with
moderate price rather than just to find low priced products. Besides, auction participants have a
feeling of attachment to auction items when bidding duration gets long. At the early stage of
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shopping online, consumer may be price sensitive, but an excited and competitive shopping
journey may increase consumers’ willingness to pay more for an attractive and better fashion
product and their price sensitivity for the final price will be decreased (Irani & Hanzaee, 2011).
And therefore the hypothesis H3 was drawn:
H3: Reasonable price strategy has positive influence on online consumer purchase decision and
behaviour.
1.3.4. Quality
Online consumers are not able to evaluate the product quality directly; they can only rely
on the photographs and descriptions provided by the online seller in the website to judge the
product quality. Also, consumers can evaluate product quality by reviewing sellers’ credibility,
feedback from other buyers, products quantity and variety. The product assurance proposed by
the online sellers also reflects the quality of the products (Lala V., Arnold V., Sutton S. G., &
Guan L, 2002). Thus, the hypothesis H4 was drawn:
H4: Product quality has positive influence on online consumer purchase decision and behaviour.
1.3.5. Web Trust and online consumers’ purchase behaviour
The purchase behaviour of consumers in the online environment is totally different from
making decision in a physical environment (Alba et al 1997). When the online shops’ website
has a proper layout, this will encourage consumers to make purchase. Besides, refund policy and
other after sales services of online transaction can affect consumers trust as well. Consumers’
trust will gain through positive experience between online buyers and sellers (Yoon, 2002).
Thus, the hypothesis H5 was drawn:
H5: Web trust has positive influence on online consumer purchase decision and behaviour.
1.3.6. Online consumers’ previous purchase decision and repeat purchase behaviour
A satisfied online shopping experience that stimulates memory resident positive imagery
of the online store or business can affect a consumer’s web trust and satisfaction (Yoon, 2002).
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That means the previous experience of an online consumers can influence his or her repeated
purchase behaviour, both positively and negatively. To increase consumers’ loyalty and increase
their repeat purchase behaviour, online sellers should develop a relationship with online buyers
during their first purchase. Therefore the hypothesis H6 was drawn:
H6: Online consumer purchase decision and behaviour has positive influence on repeat
purchase bahaviour.
2. METHODOLOGY
A self-administrated questionnaire filled up by respondents in Bosnia and Herzegovina
will be used for this research. The questionnaire will be sent out by e-mail to friend and
followers. The survey will consist of demographics questions, such as age, gender, education,
registration and activity, and perception questions that will be focused on users’ purchasing
behaviour. The sample of this study consists of internet users who know how to make an online
purchase, possibly have made one or are willing to make one in the future. Respondents will be
not limited with age constraint.
In the questionnaire, the Likert scale will be used with five categories, in which, 1 stands for
Strongly Disagree; 2 stands for Disagree; 3 stands for Neutral; 4 stands for Agree and 5 stands
for Strongly Agree. The frequency of online buying would be measured by asking how many
times the respondent had made purchases on the web in the most recent year. In order to create
these categories, consumers who purchased online once yearly, 2-4 times yearly, 5-10 times
yearly and more than 10 times yearly were categorized as trial, occasional, frequent and regular
online purchasers, respectively. This will enable the researcher to gather enough data to conduct
qualitative, quantitative but also to analyze consumer behaviour in online buying. After
conducting analysis on gathered data, results of the research will be represented in a simple way
through tables and diagrams and explanations of those findings. The researcher will draw a
conclusion which will prove or disprove the hypothesis, depending on results which will prove
or disprove derived hypotheses.
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3. RESULTS
In this chapter the results from the questionnaire and the distribution of collected data
among the respondents have been discussed and presented. The questionnaire was designed to
collect the primary data and further on to analyze the data and how consumers behave against the
importance of price, convenience, risk, shopping habits and some factors that are likely to
influence their online shopping intention. The questionnaire was first divided to the
demographics segmentation among the respondents and second to collecting the data about the
factors like price; convenience; perceived risks, shopping habits and shipping; factors that are
likely to influence shopping intention and online behavior of the respondents which effect
directly or indirectly to the decision making process and ultimately highlight the typical
behaviour of consumer while shopping online. 120 electronic questionnaires were sent by e-mail.
Finally, 102 questionnaires were usable for analyzing and following responses have been
received;
Gender: According to demographic profile, 54.22% respondents are male and 45.78%
respondents are female. At the time of survey comparatively higher number of female said that
they didn’t have online shopping experience. Therefore, according to the survey result it is clear
that male respondents are more interested in online shopping than female.
Figure 1 Gender
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Age: The figure below shows that 31.33% respondents are between 18-29 years old and 68.67%
are between 30-49 years old. We can see from these results that there were no respondents over
50 years old who purchase online. 36.84% of female respondents are between 19 and 29 years
old, and 36.16% between 30 and 49 years old. 26.67% of male respondents are between 18 and
29 years old, and 73.33% between 30 and 49 years old.
Figure 2 Age
Education: 83 people took part in the survey, among whom 28.92% respondents have bachelor
diploma, 27.71% have high school diploma, 26.51% have college diploma, and 16.87% have
postgraduate diploma. Respondents are quite highly educated with 72.30% having at least
college education.
Figure 3 Education
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Income: We can see from the results that 14.63% of respondents have monthly income less than
700BAM, 21.98% of respondents have monthly income between 701 and 1000BAM, 35.37%
have monthly income between 1001-1500BAM, 17.07% of respondents have monthly income
between 1501-3000BAM, and 10.98% of them have monthly income more than 3000BAM. The
figure below shows that monthly incomes from 1001-1500BAM with 35.37% have the highest
percentage among other income distribution.
Figure 4 Income
Next figure shows for how long people in Bosnia and Herzegovina use Internet for shopping.
Figure 5 Duration of online shopping
As we can see from the Figure 5, 29.31% of total number of respondents does not use Internet
for shopping, 27.59% of respondents have been using Internet for shopping for 3 years, 25.00%
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of respondents have been buying online for 1-3 years, and 8.62% of respondents have been
buying online for 6-12 months.
Next few questions refer to price factor.
Figure 6 Price advantage
As illustrated by the Figure 6, 15.38% strongly agreed that lower price of the same product at
solid shops is an advantage when they shop online, 60.23% agree with that as well, 16.67% were
indecisive, 6.41% disagree, and 1.28% strongly disagree. Since the majority of the respondents
with 75.64% agree that lower price of products have positive impact on their buying decision, we
can say that the Hypothesis 3: Reasonable price strategy has positive influence on online
consumer purchase decision and behaviour, is supported.
18
Figure 7 Free delivery charge is a price advantage when I shop online
As we can see from the figure above, 58.44% of respondents agree, and 35.06% strongly agree
that the free delivery charge is a price advantage when they shop online. Very low percentage,
6.49% disagree with that.
Figure 8 Product price is important to me when I shop online
Consumer cost is an important reason for online buying. As illustrated by Figure 8, for a greatest
number of online buyers in Bosnia and Herzegovina good product price is very important when
they shop online. 48.72% of respondents agree that the product price is important to them,
38.46% strongly agree with that. Only 10.26% disagree and 2.56% strongly disagree that the
product price is important to them.
19
Figure 9 I am willing to pay higher price for product that is not available in ordinary
shops
As illustrated by Figure 9, greatest part of online purchases in B&H arises from the lack of
products at domestic market. Majority of respondents, 47.44% agree and 15.38% strongly agree
that they are willing to pay a higher price for products that are not available in solid shops.
21.79% of respondents are indecisive and 15.38% are not willing to pay a higher price for
products that are not available in solid shops.
Figure 10 Free gift is a price advantage when I shop online
Many online stores offer discount coupons, rebates and free gifts. Figure 10 shows that for
50.65% of respondents free gift is price advantage, 22.08% disagree with that and 27.27% of
respondents are indecisive.
20
Figure 11 I will not purchase the product when the price is not acceptable to me when I
shop online
From Figure 11 it is obvious that majority of respondents, i.e. 56.41% of them agree and 32.05%
that strongly agree not to purchase the product online when the price is not acceptable to them
when they shop online. Only 7.69% of respondents disagree that they would purchase the
product even though price is not acceptable for them and 3.85% of respondents are indecisive
about this question.
Next few questions refer to convenience of online shopping.
Figure 12 I shop online as I do not have to leave home for shopping
Figure 12 shows that the greatest number of respondents or 49.35% disagree and 6.49% strongly
disagree that they shop online as they do not have to leave home for shopping; 12.99% were
21
indecisive, 28.57% agree and 2.60% strongly agree that they shop online as they do not have to
leave home.
Figure 13 I shop online as I can shop whenever I want
Online shops give people the opportunity to shop 24/7. The figure above shows that 58.98% of
respondents shop online as they can shop whenever they want. Only 17.95% of respondents
disagree with that and 23.08% are indecisive.
Figure 14 I shop online as I can get detailed product information online
As illustrated in Figure 14 majority of respondents or 63.16% shop online as they can get
detailed product information online. Only 19.74% of respondents disagree with that, and 17.11%
are indecisive.
22
Figure 15 I shop online as I get broader selection of products online
Figure 15 shows that 75.64% of respondents shop online because they get broader selection of
products online. Only 8.97% disagree with that, and 15.38% are indecisive.
Figure 16 Online shopping gives facility of easy price comparison
Online shops make comparison and research of products and possible prices, and online buyers
don’t have to go to other stores to compare prices. Online stores also give you the ability to share
information and reviews with other shoppers who have firsthand experience with a product or
retailer. The Figure 16 above shows, 66.67% of respondents agree and 11.54% strongly agree
that online shopping gives facility of easy price comparison as a price advantage. Also, with this
way of price comparison, online buyers save time and money. 17.95% of respondents are
indecisive about that, and only 3.85% disagree with this.
23
Figure 17 I shop online as I get user/expert reviews on the product
People can easily check the prices at a variety of stores with just a few mouse clicks. That is why
67.53% of respondents agree that shop online as they get user/expert reviews on the product they
are interested in. 18.18% of respondents disagree with that and 14.29% are indecisive.
Figure 18 I shop online as I can take as much time as I want to decide
As Figure 18 shows 51.32% of respondents agree and 23.68% strongly agree that they shop
online as they can take as much time as they want to make a decision. 9.21% disagree with that,
and 15.79% are indecisive.
24
Figure 19 I use online shopping for buying products which are otherwise not easily
available in the nearby market
As Figure 19 shows that 56.46% agree and 37.18% strongly agree that they shop online as they
can buy products that are not easily available in the nearby market or are unique in some way.
5.13% of respondents disagree with that, and only 1.28% are indecisive.
Figure 20 Online shopping makes my shopping easy
From the figure above, we can see that the greatest number of respondents, 76.73%, say that
online shopping makes their shopping easy. They not have to wait in a line or wait till the shop
assistant is ready to help them with their purchases. They can do their shopping in minutes even
if they are busy apart from saving time and avoiding crowds. Only 7.79% do not think so, and
15.58% are indecisive.
25
Figure 21 Online shopping procedure is cumbersome and frustrating
Considering the results from previous question, it was to be expected that majority of
respondents will not agree that online shopping is frustrating. 60.53% of them disagree that
online shopping procedure is cumbersome and frustrating. 11.84% agree with that, and a pretty
high percentage, 27.63% are indecisive.
Figure 22 I feel that my credit-card details may be compromised and misused if I shop
online
Making payments online is usually safe but not always. It is very interesting that almost equal
number of respondents have an opposite feeling regarding this question. 34.67% of respondents
agree and disagree that they feel that their credit card may be compromised and misused when
they shop online. Quite a large number of respondents, 33.33%, are indecisive about this feeling.
26
Figure 23 I feel that my personal information given for transaction to the retailer may be
compromised to 3rd
party
As Figure 23 shows answers to this question are quite similar as to previous one. 38.60% of
respondents feel that their personal information given for transaction to the retailer may be
compromised to 3rd
party. 30.26% do not feel like that, and 31.58% are indecisive about this
feeling.
Figure 24 I might not get what I ordered through online shopping
Sometime online buyers may face delivery risk. Delivery risk occurs when the seller fails to
deliver the original product or delivers a damaged (inferior/duplicate) product due to shipping
problems. Results show that 40.26% of respondents agree that they might not get what they
ordered through online shopping, 37.67% of respondents disagree on that, and 22.08% are
indecisive about not getting what they ordered.
27
Figure 25 It is hard to judge the quality of merchandise over Internet
Figure 25 shows that 64.93% of respondents agree that is hard to judge the quality of
merchandise over the Internet. 18.18% disagree with that and 16.88% are indecisive.
Figure 26 Finding right product online is difficult
As Figure 26 shows, 56.58% of respondents disagree, and 10.53% strongly disagree that finding
the right product online is difficult. Only 7.90% of respondents disagree with that, and 25.00%
are indecisive.
28
Figure 27 If I shop online I cannot wait till the product arrives
From Figure above, we can see that 36.00% of respondents agree that they cannot wait till the
product arrives, 38.67% disagree with that, and 25.33% are indecisive about that.
Figure 28 I cannot get to examine the product when I shop online
As it was expected, majority of respondents or 67.11% agree that they cannot manage to
examine the product when they shop online, 15.79% of them disagree with that, and 17.11% are
indecisive.
29
Figure 29 I might not receive the product ordered online
Figure 29 shows that 46.06% of respondents agree that they might not receive the product
ordered online, 30.26% disagree with that, and 23.68% are indecisive.
Figure 30 I purchase online only when I can return the product without any frills or strings
attached
Figure 30 shows that 41.54% of respondents shop online only when they can return the product
without any frills or strings attached. 27.27% of respondents disagree on that, and 31.17% are
indecisive.
30
Figure 31 I do not purchase online if there is no money back guarantee
Figure 31 shows that 55.27% of respondents do not purchase online if there is no money back
guarantee, 23.68% disagree with that, and 21.05 are indecisive.
Figure 32 Using Internet for online shopping is easy
As Figure 32 shows, majority of respondents, 59.74% of them agree and 28.57% strongly agree
that using Internet for online shopping is easy. Only few of them or 3.90% disagree with that,
and 7.79% are indecisive.
31
Figure 33 Shopping online is fun and I enjoy it
From the figure above, we can see that 61.04% of respondents agree and 15.58% strongly agree
that shopping online is fun and that they enjoy it. Only 5.19% of them disagree with that, and
18.18% are indecisive.
Figure 34 I will have no problem in shopping online if I get to know that my friends and
relatives are doing it without any problems
Data show that 66.24% of respondents will not have problem in shopping online if they get to
know that their relatives and friends are doing it without problems. Only 9.09% disagree with
that, and 24.68% are indecisive. Next few questions are about the behaviour of online buyers.
32
Figure 35 What is the Internet the mostly used for
As illustrated by the Figure 35, 32.47% of respondents most often use Internet for searching
information, 22.08% of them use Internet mostly for work, 16.88% of them for browsing,
12.99% for E-mailing, 10.39% for Social networking, and 5.19% of them for entertainment.
Figure 36 How many times have you bought electronic goods over the Internet
Figure 36 shows that 51.95% of respondents have bought electronic goods 1-5 times during the
past six months. 28.57% of respondents have not bought electronic goods during the same period.
11.69% of respondents have bought electronic goods 5-20 times during the past six months and
1.30% of respondents have done it more than 20 times during the same period.
33
Figure 37 How much do online buyers spend on online shopping of electronic goods per
month
When it comes to amounts respondents claimed to be willing to spend for online shopping,
looking at the Figure 37, it is clear that majority of respondents spend up to 50BAM per month.
This can be an indicator of either distrust towards online shopping or a general picture of
economic status of respondents. 34.72% of respondents spend from 50BAM to 200BAM and
only 5.56% spend more than 200BAM per month on buying electronics online. This is an
important detail for creating a Bosnian online shopping customer profile.
Figure 38 Crucial factors that affect online buyer’s decision making
As illustrated in Figure 38, 67.53% of respondents find that the main advantage of internet
shopping is purchase of products at lower prices, 66.23% of respondents purchase online because
34
of the lack of products at domestic market, 25.97% or respondents buy online because of the
ability of price comparison, 24.68% because of the ability of product review, and 19.48% of
respondents buy online because of convenience and time saving.
Figure 39 The way that online buyers find the sales channels
As Figure 39 shows, 42.67% of online buyers of electronics in Bosnia and Herzegovina find the
online sales channels through recommendation from their friends and families. 24.00% of
respondents find it through Social media advertising, 14.67% trough Google AdWords, 13.33%
through Web banners, 4.00% on TV, and 1.33% find it through flayers.
35
Figure 40 The main barriers which keep people away from shopping online
The most frequently cited risk associated with online shopping include financial risks. That is
why 49.35% of respondents find that the main barrier which keeps them away from shopping
online is safety of payment. 44.16% of them for the main barrier find high shipping costs,
25.97% find low trust level of online store/Brand, 22.08% find warranty and claims, 20.78% find
too slow delivery, 18.18% refund policy, 15.58% find value added tax/customs duty, and 10.39%
of respondents do not find none of the above as barriers.
3.1. Discussion
This study was conducted among 120 respondents from across the Bosnia and
Herzegovina. 102 of them completed the questionnaire and used it as valid. 54.22% of them are
male and 45.78% respondents are female; 31.33% are between 18-29 years old and 68.67%
respondents are between 30-49 years old. Most of them (72.30%) are highly educated having at
least college education. The most numerous respondents (35.37%) are those who have monthly
income between 1,001 and 1,500BAM (Bosnian Convertible Mark), followed by 21.95% of
those with income between 701BAM and 1,000BAM. It is interesting that 38.55% of the
respondents have been buying online for more than 3 years longer than one year and only
13.25% of respondents have been using Internet for shopping less than 6 month. During last six
month, 51.95% of respondents have bought electronic goods on the Internet, and 28.57% did not
36
do so during the same period. For only 11.69% of respondents we can say that they are frequent
buyers because they have bought online 5-20 times during last six months. Interesting is that
62.26% of buyers aged between 30 and 49 years have bought online 1-5 times during past six
month, and 41.67% of younger respondents have nothing bought online during that time.
Results show that online buyers use Internet mostly for searching information (32.47%) and
work (22.08%). When it comes to amounts, majority of respondents spend up to 50BAM per
month.
As the crucial factors which affect their decision making in the final selection of the product
respondents state the best prices (67.53%) and availability of products that are not available in
local stores (66.23%). And as the main barriers which keep respondents away from online
shopping are safety of payment (49.35%) and high shipping costs (44.16%).
Price
H3 is significantly supported because 67.53% of respondents find that the main advantage of
internet shopping is the purchase of products at lower prices which is the main factor that affects
consumer decision to purchase online. 66.23% of respondents buy online due to unavailability of
desired products at the especially domestic market. It is found that product price is more
important to younger buyers, aged between 18 and 29 (94.67%) than those between 30 and 49
years old (85.19%). But, both male and female respondents mostly will not purchase the product
when the price is not acceptable to them. Free gift is price advantage more for female (100%)
than for male (88.64%). Also, female respondents (64.71%) and younger buyers aged between
18 and 29 (66.67%) are more willing to pay higher price for products that are not available in
solid shops.
Convenience
Results of testing H1 indicated that individual demands had positive influence on online
consumer purchase decision and behaviour. This survey indicated that the vast majority of
respondents (93.59%) used online shopping for buying products which are otherwise not easily
available in the nearby market or are unique. The majority of respondents (75.64%) shop online
37
as they get broader selection of products online. This convenience means more to female buyers
(82.36%) than male buyers (70.46%). The ability of easy price comparison in online shopping is
very important to 78.21% of respondents and 63.53% of respondents shop online as they get
user/expert reviews on the product. It is interesting that convenience of not having to leave
home for shopping is not so important for Bosnian buyers because only 31.17% of respondents
said that they shop online as they do not have to leave home for shopping. Also, only 17.95% of
respondents shop online as they can shop whenever they want, which makes us to conclude, that
they do not consider this convenience particularly important. But, time is an important factor for
75% of respondents in sense that they can take as much time as they want to decide.
Supporting the hypothesis H2 indicated that attitude of consumers towards online shopping
significantly affected their online shopping behavior. For majority online buyers online shopping
is easy (88.31%) and fun (76.62%). That is why it was expected that majority of respondents
disagree that online shopping is difficult. However, online buyers need to wait until their order
arrives, and data show that only 36.00% of respondents are impatient with waiting for online
purchase to arrive. Thus when a consumer has a significant attitude toward online shopping, this
will have effect on his/her shopping behavior.
Quality
Results show that H4 is supported because the majority of respondents (67.11%) find that they
cannot get to examine the product when they shop online. 64.93% of respondents think that is
hard to judge quality of merchandise over the Internet. Data show that this is something harder
for male (70.46%) than female buyers (57.57%).
Trust
H5 is supported because results show that respondents are mostly aware of possibility of losing
money and financial details, which have negative effect on attitude toward online shopping.
Before purchasing a product, a consumer considers the various risks associated with the purchase.
Also, the fear of non-delivery of order will have negative influence on attitude towards shopping
online even though only 46.06% of respondents are aware of possibility of not receiving the
38
product ordered online. In the respect of financial risk, data show that respondents are quite
careful because 55.27% of respondents do not purchase online if there is no money back
guarantee. Interesting is that 47.72% of male buyers and only 25% of female buyers feel that
their personal information given for transaction could be compromised by 3rd
party.
Bosnian people are very close to their friends and relatives, and their recommendation will have
a major impact on their trust in online buying. That is why majority of respondents (66.24%) said
that they would have no problem in shopping online if they got to know that their friends and
relatives were doing it without any problems. The way online buyers find sales channels is very
important for online marketers. The results of this survey show that respondents mostly find it
mostly through recommendation from their friends and families (42.67%) followed by Social
media advertising (24.00%), Google AdWords (14.67%), Web banners (13.33%), television
(4.00%) and flyers (1.33%).
3. CONCLUSION
Online shopping is becoming more popular day by day with the increase in the usage of
World Wide Web known as www. Understanding customer’s need for online selling has become
challenge for E-marketers. Specially understanding the consumer’s attitudes towards online
shopping , making improvement in the factors that influence consumers to shop online and
working on factors that affect consumers to shop online will help marketers to gain the
competitive edge over others. The growing use of Internet in Bosnia and Herzegovina provides a
developing prospect for E-marketers. Therefore this study has focused mainly on the factors
affecting online Bosnia and Herzegovina buyers’ behaviour. The main influencing factors have
been identified as Price, Trust and Convenience. The results of this research show that all set
hypothesis are supported.
Survey which is conducted in this work shows that online buyers in Bosnia and Herzegovina are
mostly highly educated, between 18 and 49 years old, with monthly income between 1000BAM
and 1500BAM.
39
In conclusion online buyers in Bosnia and Herzegovina are very price sensitive oriented
and convenience oriented. Regarding trust the most frequently cited risk include financial risks.
Online buyers are very cautious with risks associated with the purchase. We can suppose that this
is the reason why majority of respondents usually do not buy expensive goods and mostly spend
maximum 50BAM per month. It is found that there is no significant difference between male and
female purchasing behavior. Also, online buyers of different age have very similar behavior
which is a very important for e-marketers that easily can reach a wide target audience. Results
show that online buyers use Internet mostly for searching information and work. The main
reasons for buying online are best prices and availability of goods that are not available in local
market. Regarding convenience the most important for online buyers is ability to compare prices
easily and get users/experts reviews on products. In contrast to this, time saving in the sense that
they do not have to go out for shopping but can shop from home is not so important to them.
Table 1.
Summary of the Seven Hypotheses and Outcomes
Hypothesis Outcome
H0: There is a relationship between factors affecting consumer behaviour and
online shopping.
Supported
H1: Individual demands have positive influence on online consumer
purchase decision and behaviour.
Supported
H2: Consumers attitude has influence on online consumer purchase decision
and behaviour.
Supported
H3: Reasonable price strategy has positive influence on online consumer
purchase decision and behaviour.
Supported
H4: Product quality has positive influence on online consumer purchase
decision and behaviour.
Supported
H5: Web trust has positive influence on online consumer purchase decision
and behaviour.
Supported
H6: Online consumer purchase decision and behaviour has positive influence
on repeated purchase bahaviour.
Supported
40
Understanding relationships between these factors and the profile of online buyers can provide
further development of e-marketers and their marketing strategies to convert Internet users into
online buyers while retaining existent online customers
Literature Review
This literature review section refers to a range of papers that are relevant to the current
situation of online shopping. The research papers have been chosen as they identify the factors
that affect online shopping of electronic goods. Many previous papers have analyzed online
shopping behaviour: for example, Hunt (2007) discussed the various methods of online
shopping; Wolfinbarger (2001) studied the situations involved in online shopping; and Kimberly
(2007) talked about the difference between online shopping and retail shopping. These papers
discussed online shopping behaviour of many kinds of consumers in connection with a wide
product range. This study focuses more specifically on how electronics are purchased by
Bosnians. The electronics is chosen as the focus of this study as it has become a necessary part of
our modern culture. Electronic industry is developing rapidly and as technology develops,
electronics become progressively cheaper while performance increases (Weiser, 1999).
Much research has been concentrated on the online shopping in the world. However, there is still
a need for closer examination on the online shopping buying behaviour in specific countries.
While both established and new, large and small scale businesses are now using the Internet as a
medium of sales of their products and services. The products variety, services, efficiency,
security and popularity of online shopping also develop quickly, it is necessary for the online
shopping industry to have continuous improvement to meet consumers changing needs and
expectations. Still there is a huge research gap not only between countries, but especially
between developed and developing countries, which may differ significantly between countries
that limit the generalization of research results from developed countries to developing country
contexts.
41
Appendices
Questionnaire for participants of the survey
Section-1: In this section you will be asked about demographics.
1. Do you live in Bosnia and Herzegovina?
a. Yes
b. No
2. What is your gender?
a. Male
b. Female
3. What is your age?
a. 18-29 years old
b. 30-49 years old
c. over 50 years old
4. What is the highest level of education you have completed?
a. High school
b. College
c. Bachelor
d. Postgraduate or more
5. What is your monthly income?
a. Up to 700KM
b. 701-1000KM
c. 1001-1500KM
d. 1501-3000KM
e. More than 3000KM
6. For how long you have been using Internet for shopping:
a. Less than 6 Months
b. 6 - 12 Months
c. 1 - 3 Years
d. More than 3 Years
e. Do not use at all
42
Section-2: In this section you will be asked about price factor. Please indicate the number that
best indicates the degree to which you agree or disagree with each of the following statements.
1 means "Strongly Disagree", 2 means "Disagree", 3 means "Indecisive", 4 means "Agree" and 5
means "Strongly Agree".
7. The lower price of the same product at solid shops is an advantage when I shop online.
1 2 3 4 5
8. Free delivery charge is a price advantage when I shop online.
1 2 3 4 5
9. Product price is important to me when I shop online.
1 2 3 4 5
10. I am willing to pay for a higher price for product(s) that is/are not available in solid
shops.
1 2 3 4 5
11. Free gift is a price advantage when I shop online.
1 2 3 4 5
12. I will not purchase the product when the price is not acceptable to me when I shop
online.
1 2 3 4 5
Section-3: In this section you will be asked about convenience of online shopping. Please
indicate the number that best indicates the degree to which you agree or disagree with each of the
following statements. 1 means "Strongly Disagree", 2 means "Disagree", 3 means "Indecisive", 4
means "Agree" and 5 means "Strongly Agree".
13. I shop online as I do not have to leave home for shopping
1 2 3 4 5
14. I shop online as I can shop whenever I want
1 2 3 4 5
15. I shop online as I can get detailed product information online
1 2 3 4 5
16. I shop online as I get broader selection of products online
1 2 3 4 5
17. Online shopping gives facility of easy price comparison (Hence, price advantage)
1 2 3 4 5
18. I shop online as I get user/expert reviews on the product
1 2 3 4 5
43
19. I shop online as I can take as much time as I want to decide
1 2 3 4 5
20. I use online shopping for buying products which are otherwise not easily available in
the nearby market or are unique (new)
1 2 3 4 5
21. Online shopping makes my shopping easy
1 2 3 4 5
22. Online shopping procedure is cumbersome and frustrating
1 2 3 4 5
Section-4: In this section you will be asked about perceived risks, shopping habits and shipping
of online shopping. Please indicate the number best indicates the degree to which you agree or
disagree with each of the following statements. 1 means "Strongly Disagree", 2 means
"Disagree", 3 means "Indecisive", 4 means "Agree" and 5 means "Strongly Agree".
Perceived Risks:
23. I feel that my credit-card details may be compromised and misused if I shop online
1 2 3 4 5
24. I feel that my personal information given for transaction to the retailer may be
compromised to 3rd party
1 2 3 4 5
Product Risk:
25. I might not get what I ordered through online shopping
1 2 3 4 5
26. It is hard to judge the quality of merchandise over Internet
1 2 3 4 5 6 7
Convenience Risk:
27. Finding right product online is difficult
1 2 3 4 5
28. If I shop online I cannot wait till the product arrives
1 2 3 4 5
29. I cannot get to examine the product when I shop online
1 2 3 4 5
Non-delivery Risk:
30. I might not receive the product ordered online
1 2 3 4 5
44
Return Policy:
31. I purchase online only when I can return the product without any frills or strings
attached
1 2 3 4 5
32. I do not purchase online if there is no money back guarantee
1 2 3 4 5
Section-5: The following questions try to assess some factors that are likely to influence your
online shopping intention. Please indicate the number best indicates the degree to which you
agree or disagree with each of the following statements. 1 means "Strongly Disagree", 2 means
"Disagree", 3 means "Indecisive", 4 means "Agree" and 5 means "Strongly Agree".
33. Using Internet for online shopping is easy
1 2 3 4 5
34. Shopping online is fun and I enjoy it
1 2 3 4 5
35. I will have no problem in shopping online if I get to know that my friends and relatives
are doing it without any problems
1 2 3 4 5
Section-6:
Part-1: The following part will just ask you about your online behavior. Please mark one of the
14 below options in terms of times spent or frequency of use. (Example: If you spend maximum
out of total time spent on Internet in information search then mark it).
36. I use the Internet mostly for:
a. Browsing
b. Information search
c. E-mails
d. Chatting
e. Work
f. Social networking
g. Blogging
h. Entertainment
i. Buying
j. Banking
k. Product Search
45
l. Do not use
Part-2: The following part will just ask you about some more questions on your online behavior.
(Please select the one you find most appropriate in your case).
37. If you have, then how many times have you bought electronic goods on Internet (during
the past six months)?
a. Never
b. 1-5 times
c. 5-20 times
d. More than 20 times
e. Not sure
38. How much do you spend on online shopping of electronic goods per month?
a. Up to 50KM
b. 50-200KM
c. More than 200KM
39. What are the crucial factors which affect your decision making in the final
selection of the product ( Select all of the answers that apply)
a. The Best prices
b. Convenience & Time saving
c. Not available in local stores
d. Price comparison available
e. Product reviews available
40. How did you find the online sales channel?
a. Recommendation from may family/friends
b. Social media advertising
c. Web banner
d. Google AdWords
e. TV
f. Radio
g. Newspapers/Magazines
h. Flyer
46
i. Mobile advertising
41.What are the main barriers which keep you away from shopping online?
a. Safety of payment
b. Low trust level of online store / Brand
c. Value added tax / customs duty
d. High Shipping Cost
e. Refund Policy
f. Warranty and claims
g. Delivery too slow
h. None of the above
47
References
1. Jae-Il Kim, Hee Chun Lee, Hae Joo Kim, “Factors Affecting Online Search Intention and
Online Purchase Intention”, Seoul Journal of Business, Volume 10, Number 2 (December
2004).
2. Anuj Dhawan, „Motivation Factors for OnLine Buying: The Price Driver“, Master thesis,
School of Computing and Mathematical Sciences Auckland, New Zealand 2008.
3. Brown, M., Pope, N. and Voges, K. (2003), "Buying or browsing? An exploration of
shopping orientations and online purchase intention", European Journal of Marketing,
Vol. 37 No. 10/11 pp. 1666-1684.
4. Rohm, A. J. and Swaminathan, V. (2004), "A typology of online shoppers based on
shopping motivations," Journal of Business Research, Vol. 57 No. 7 pp. 748-747.
5. Gurvinder S Shergill, Zhaobin Chen, „Web-based shopping: consumers’ attitudes towards
online shopping in New Zealand“, Journal of Electronic Commerce Research, VOL. 6,
NO.2, 2005.
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Vita
Biljana Lukić was born in Gradiška, Bosnia and Herzegovina on 25th of March
1976. She attended Faculty of Technology at University of Banja Luka from 1994 to 2003 and
received Master of Science in Textile Engineering. After the graduation she was working in
“BHV Consulting” from Croatia for four years. As a general director she started up the
business in the Bosnia and Herzegovina and had a good cooperation with eminent universities
and organizations from all over the World. Looking for new challenges, she continued her
career in the retail chain "Pevec" as a Director of Marketing and PR Department where she
gained a lot of experience in the field of marketing and public relations. For the last four years
she has been running Marketing, Communications and PR Department at “Triglav Insurance”.
In the year 2011, she completed “Triglav International Business Academy”, school for
prospective employees of Triglav Group at the University of Ljubljana. Beside numerous
seminars and trainings in the field of marketing, public relations and management, in 2012 she
attended “Marketing Academy of Triglav Group”. In the fall of 2012 she began her work for
her Master’s Degree in Business Administration at American University in Bosnia and
Herzegovina.