smartphone consumer behaviour e-commerce m-commerce mba oum
TRANSCRIPT
INFORMATION TECHNOLOGY FOR MANAGERS BMIT5103
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CONTENTS 1.0 ABSTRACT ..................................................................................................................................... 2
2.0 INTRODUCTION ........................................................................................................................... 2
3.0 LITERATURE REVIEW .............................................................................................................. 5
3.1 Consumer Behaviour .................................................................................................................. 5
3.2 Mobile Commerce (M-Commerce) .......................................................................................... 10
4.0 E-COMMERCE IN ORGANISATIONS .................................................................................... 15
4.1 TESCO ....................................................................................................................................... 15
4.1.1 Customer View ................................................................................................................... 16
4.1.2 Shopping Experience ......................................................................................................... 16
4.2 JETSTAR................................................................................................................................... 18
4.2.1 Searching and Booking ...................................................................................................... 19
4.2.2 Purchasing and Payment ................................................................................................... 20
4.2.3 Flight Ticket ....................................................................................................................... 22
5.0 WELL KNOWN ORGANISATION - SPORTS DIRECT ........................................................ 23
5.1 The Organisation and Business Operation ............................................................................. 23
5.2 Vision and Mission .................................................................................................................... 24
5.3 E-Commerce Practice ............................................................................................................... 25
5.4 E-Commerce Growth ................................................................................................................ 29
5.5 E-Commerce Proposal Enhancement ..................................................................................... 29
5.5.1 Amazing Testimonials ......................................................................................................... 29
5.5.2 Instant Chat ......................................................................................................................... 30
5.5.3 Large Encrypted Fence Logo ............................................................................................. 31
5.5.4 Incentives upon Register ..................................................................................................... 31
6.0 CONCLUSION ............................................................................................................................. 32
7.0 REFERENCES .............................................................................................................................. 34
INFORMATION TECHNOLOGY FOR MANAGERS BMIT5103
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SMART PHONE CONSUMER BEHAVIOUR AND MOBILE COMMERCE
1.0 ABSTRACT
Latest and non-stop developments in mobile technologies have produced a new kind of device,
an easy to use and programmable mobile phone; the smart phone. In general, smart phone users
can obtain any application which is customized for specific user needs and preferences Today’s
smart phone application markets prove an ever increasing number of applications. Smart phone
operating systems include Apple’s iOS, Google’s Android, Microsoft’s Windows Phone,
Nokia’s Symbian, and RIM’s BlackBerry OS. Most popular applications download centre for
Android device is Play Store and App Store for Apple IOS. The purpose of this paper is to
explain the attitude or behaviour of consumers toward the usability of smart phone and
perspective look of mobile e-commerce which is also known as mobile commerce or m-
commerce.
2.0 INTRODUCTION
Mobile phone nowadays are called as smart phone as it offers more advanced computing power
and connectivity. Generally, a smart phone is a handheld computer, powerful enough to
perform various functionalities comparable to a computer. Along with the smart phone
fundamental capabilities to make voice call, video call, SMS, and MMS. In other words, smart
phone have extended list of information processing functionalities such as Wi-Fi, GPS, high
resolution touch screen with ability to access email and Internet, managing personal time
schedule, editing documents and images, and many other applications based on specific
function and task.
“At its core, e-commerce refers to the purchase and sale of goods and/or services via electronic
channels such as the Internet” (Arline, 2015, para. 2). E-commerce is indeed a revolutionary
innovation, and businesses have increasingly adopted electronic commerce or e-commerce to
automate their operations and processes. Present-day electronic commerce involves everything
from selling and buying goods and payment services via the Internet, ordering "digital" content
for immediate online utilization to a range of services.
Turban et al. (2015) indicated that mobile e-commerce or m-commerce is focused on
performing transactions with the use of mobile apps and mobile websites which might not
essentially involve interaction with a conventional physical retail store.
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According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, the
global smart phone market grew 13.0% over a year in second quarter of 2015 with 341.5 million
shipments (Smart phone OS Market, 2016).
Figure 1.0
Figure 2.0
Referring to the above graph and table (Worldwide Smart phone OS Market Share), it is clearly
shown that the smart phone global market at second quarter of 2015 is being dominated by
Android OS devices as much as 82.8% market share compare to iOS at 13.9% followed by
Windows Phone at 2.6%, BlackBerry OS at 0.3% and 0.4% by Others.
Android offers wide range of application with various usage and these apps can be downloaded
from Play Store download centre, where most of it is free. And there are also Apple’s apps that
have been specially created for Android user compatibility that could be downloaded at Play
Store. Due to smart phone or device equipped with Android OS is obviously much cheaper
than other OSes; consumers are purchasing them mostly due to price point of the device alone.
This contributes Android as a majority in the smart phone market share.
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Figure 3.0
Figure 4.0
Samsung is the global smart phone market leader with 21.4% market share followed by Apple,
Huawei, Xiaomi, Lenovo and Others. Chinese smart phone manufacturer such as Huawei,
Xiaomi and Lenovo when they are combined together astonishingly control the market share
at 19%. This percentage is kept on increasing each year, and they are not far behind Samsung.
In a different angle, we are looking at why Samsung alone as a brand has better global market
share? This is generally because their product portfolio is wider; from low-end up to real high-
end. So they can target a bigger market, provide larger option in meeting customer’s
preferences with various selection of price, functionality and quality in mind. But Apple has
their own advantages with high product quality, sleek design, operating system robustness and
great user experience; still makes them a popular choice in the smart phone market behind
Samsung and Android devices.
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3.0 LITERATURE REVIEW
3.1 Consumer Behaviour
So what is consumer behaviour? It is the study of the processed involved when individuals or
groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy
needs and desires (Consumer Behaviour, 2013).
There are many reasons on why consumer or end user have their needs in owning smart phone.
Basic or general purpose to own a smart phone is communication. But there are many
preference that we can look upon that influence on selection of smart phone vary with
individual preferences which will be based on their specific usage and requirement.
What contributes to this selection? We go back to the smart phone itself, what usage it could
deliver to its user. And what the user want from the smart phone that will benefit them. To
understand more and deeper what consumer behaviour on smart phone is we need to know
what the processes are involved that leads to selection and purchase or buying decision.
The Engel, Kollat and Blackwell model (Figure 1.0) shows consumers’ buying-decision
process, which is based on the field of consumer psychology theories. It indicates that
consumers pass through five stages: problem recognition, information search, evaluation of
alternatives, purchase decision, and post-purchase behaviour. The buying decision process
starts before the actual purchase took place. Nevertheless, consumers do not always pass
through all five stages when buying goods. Some of the stages would be skipped. For example,
when buying daily necessities, consumers would skip information search and evaluation, going
directly from the problem recognition to the purchase decision. “The Engel, Kollat and
Blackwell model is essentially a conscious problem solving and learning model of consumer
behaviour” (Jisana T.K., 2014.)
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Figure 5.0 the Engel, Kollat and Blackwell model
Problem recognition. The buying process starts when the buyer recognizes problems or needs-
the buyer senses that there is the difference between the actual circumstance and desired
circumstance. Essentially, problems or needs are triggered by many factor. A person may be
tempted by advertisement, which triggers the thought about purchasing.
Information search. After recognizing the problem in this case is need, consumers will start
to search for information. At this level, a person is more receptive to information.
Information sources can be divided into four groups:
(1) Personal- family, friends, neighbours, acquaintances.
(2) Commercial- advertising, web sites, salespersons, dealers, packaging, displays.
(3) Public- mass media, consumer-rating organizations.
(4) Experiential- handling, examining, using the product.
Evaluation of alternatives. Consumers will develop their own evaluation standard based on
the information from information search. Nevertheless, no single evaluation process can be
applied by all consumers or by one consumer in all buying situations. Comparison of usability
features, design and price will take place.
Purchase decision. In this stage, consumers choose the best way to solve the problems and
satisfy the needs and purchase. However, this process is usually influenced by reference
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groups, family, acquaintances, or other unanticipated situational factors. Usually, when
consumers have a positive image toward the certain brand, there is a great possibility that they
will intend to buy the product of that brand.
Post-purchase behaviour. After the purchase, the consumer evaluates the products from the
using experience. If performance falls short of expectations, the consumer is disappointed and
keep searching for more information to minimize the dissatisfaction; if the product meets
expectations, consumers is satisfied; if the product exceeds expectations, the consumer is
delighted. The chance of repurchase will be larger. The consumer will also talk about
favourably about the product to others.
Consumer decision process in purchasing smart phone highly influenced by following factors;
Brands, Convenience, Dependency, Price, Product Feature and Social Influence. These factors
will be the measure by consumer in smart phone selection.
Brand is the most valuable asset for a company, where it represents a product or service means
to consumers. Brands are more than just names and symbols. It is also the element of
relationship between company and customers. The brand name has directly influenced
customer’s perception toward the quality of the offering. When customers are satisfied, they
generate word of mouth and it will lead to others to be interested and choose the brand. To
enhance consumer response, marketers strive to build brand equity in order to capture
consumer preference and loyalty. A study on the effect of brand name toward cars shows that
people trust the well know brand for its quality, performance and believe that brand shows a
person lifestyle and societal status. Brand is a name, term, design, symbol or any feature that
identifies one seller’s goods or services as distinct from those of other sellers.
Convenience refers to a situation where works are simplified, easy and can be done with less
effort, without discomfort or difficulty. Convenience in Smart phone may refer to the ability to
use the Smart phone at anytime and anywhere, without having to port the Smart phone in a
fixed workstation. Nowadays, people want things to be done at the fingertips. The use of
applications (apps) in Smart phone has flourished businesses by having ability such as
documenting expenses and processing credit cards anywhere. Smart phone is a 4 inch device
which performs as powerful like a heavy and big size laptop. It able to do everything like a
laptop, keeping everything such as documents, photos, games and apps in one’s pocket,
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(Anthony, 2012). Wi-Fi is everywhere especially in the city and restaurants, making surfing
internet become convenience. A study shows there is a high usage of Smart phone for medical
apps such as disease diagnosis management and drug reference among medical students and
junior doctors for education and clinical practice purposes (Payne et al., 2012). Instead of
flipping books, medical knowledge can be very fast and convenient through Smart phone apps.
Dependency is the strong propensity for continuous high usage, being engaged and unwilling
to be apart from it. Smart phone is no longer a phone for calling and instant messaging alone.
For the customernger generation, online education or E-learning has growing popularity in
countries such as Malaysia, China, South Korea and India. People have become much
dependent on Smart phone by doing most of the jobs using a Smart phone, where formerly it
can be done without Smart phone. Camera, MP3, notes, contact lists is all in the Smart phone,
making people unable to do their work without Smart phone. People are so obsessed that
company introduced thousands of apps to make their Smart phone usage experience better.
Smart phone has also become an important device in surfing the internet. Not only marital
issues arise, social and communication skills of people also becoming poor and texting become
a way of communication instead of talking.
Price is the amount of money charged for a product or service, or the sum of the values that
customers exchange for the benefits of having or using the product or service. Price is basically
the amount of money a consumer willing to pay for in exchange with products and services
that they think are valuable. The value of money varies from different people. There are so
many methods of pricing, such as mark-up pricing, target-return pricing, perceived-value
pricing, going rate pricing and promotional pricing (Kotler and Keller, 2012). If the discount
rate is low, it should be presented in its value; whereas if the discount rate is high, it should be
presented in percentage, so that customers will have higher purchase intention (Isabella, 2012).
In year 2013, Malaysian customerth who aged 21 to 30, with monthly earning less than RM300
is eligible to get a RM200 government rebate on a Smart phone (The Star, 2013). It shows
encouragement from the government to the customerth, which is the Generation Y to use a
Smart phone by offering better price especially those who concern about pricing of Smart
phone. In this case, price is the driven factor in a purchase decision.
Product Feature is an attribute of a product to meet the satisfaction level of consumers’ needs
and wants, through owning of the product, usage, and utilization of a product. Product features
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including hardware and software. Hardware is the description for a device that can be touched
physically. The hardware of a Smart phone is the body of the phone itself, size and weight.
Colour and design are also considered as hardware as it is the physical appearance of the Smart
phone. Software whereas is the general term for computer programs, procedure and
documentation. The software of a Smart phone is the operating platform, storage memory, or
apps that run the phone. The software for a phone in the market is such as iOS, Android,
Windows, RIM Blackberry, Symbian and others. Study on operating system shows Android
consist of 42%, Symbian 18%, whereas iOS, RIM Blackberry and Windows are the same at
6% (Russell, 2012). According to a research, factor affecting ones to acquire a Smart phone
due to software consists of 33 % whereas hardware has only 17.6%. It shows that software is
much more important than hardware in making Smart phone purchase decision. However, in
the same research, Smart phone’s design gain the most importance of the device specification,
it consists of 56%, exceed the importance of Wi-Fi (38.5%), computing power (34.2%), price
(30.2%) and others (Osman, 2012).
Social Influence. A consumer behaviour is influenced by social factors, such as the consumer’s
small groups, family, and social roles and status. During the decision making process,
consumers tend to always influence by the social group, which is the people. Depending on
various factors, consumers might listen and believe in different social groups, perhaps to those
who are more professional in certain fields. In the purchasing of Smart phone for Generation
Y, perhaps the social influence might come from friends, peers, family members and spouse.
According to a research, consumers’ purchase behaviour is shaped up by others, especially by
family members while buying high-involvement products (Farzana, 2012). According to
another research, 35.6% of 1814 respondents feels that the trend in community is one of the
important criteria that influence Smart phone purchase decision (Osman, 2012). A study also
found that social influence has a significant relationship of student’s dependency on a Smart
phone. Another study towards customerng adult of age 19 to 25 shows that both direct and
vicarious role models have an impact on the consumer’s purchase intention, in which direct
role model refers to parents and vicarious role model refer to celebrities. Social influence
indeed plays a significant role and it is the most influential to student’s dependency on Smart
phone (Suki and Suki, 2013).
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With the increase of smart phone users globally, many activities could be done just using the
smart phone itself. Apps (applications) installed on smart phone for example has enable online
transaction or purchasing could be established and performed safely. This has made the mobile
commerce increase tremendously in recent online market.
3.2 Mobile Commerce (M-Commerce)
Current global situation has shown us that consumer spend a lot of their time with online retail
on their smart phone rather than computer desktop or notebook. Due to this trend, retailer has
changed their strategy to meet the increasing online consumer and to maintain the
competitiveness on current digital market.
Past practices have shown that business being done traditionally by visiting physical store in
this case we call it official retail store or outlet. Consumer or customer visited the outlet, view
the product, do a product selection, purchase, proceed with payment and receive item. As
technology evolved with Internet, consumer has the ability to purchase safely with online
security measure on website using computer desktop or notebook where consumer do the same
processes – visit, view, select, purchase and payment via their online store. But the only
difference is item purchased will not be given immediately instead it will be delivered via postal
service.
Now with the same website online purchasing concept, the process of buying and selling has
been widely and safely been implemented and performed on smart phone with application
being developed by retailer or business entity for the ease of consumer; where power of
consumer is at their fingertip and convenience. It is getting more interesting as the online store
is open 24 hours and 7 days a week.
According to Galgey & Pattinson, keys to survive in retail business is to understand and
respond to consumer. Retailers have to face difficult industry pattern and inconsistency of
consumer behaviour. This situation will be explained more and comprehended by looking at
the following.
Empowered Price Sensitivity where consumers have wider range of option in to buy product
with the lowest price. With the web and mobile technology product, supplier and price
information can be obtained much faster.
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Nonlinear Search and Influence Patterns. Mass media advertising plays important role in
engaging and influencing consumer to purchase product online or drive them to the physical
retail outlet. With the aid of social media, mobile ads, email and search marketing have given
the retailers to influence consumer in purchasing decision making.
Channel Hopping. Options for purchasing products have increased due to greater number of
communication channels. Consumers have switched from website to smartphone when doing
research and finalizing purchase. Social media is high potential retail medium and also called
social commerce.
Digital Immigrants, Natives and Dependents. Digital Immigrants are older group that
increasingly comfortable with technology but they are much less to utilise mobile technology
in shopping behaviour. Digital Natives are the first generation to grown up with digital devices
and Internet. They are comfortable to use the technology for purchasing activity. Digital
Dependents is new generation where they are not comfortable if they do not have access to
technology because they are growing up with broadband connections, constant connectivity
and related technology.
Need For Convenience. Living a stressful live due to economic and social factors consumer
searching for products and shopping channels that could effect on time and financial resources
on top of looking for satisfaction on fulfilment, desired goods and great service.
M-commerce is growing rapidly and actively. Mobile is 29% of e-commerce transactions in
the US and 34% globally (State of Mobile Commerce, 2015). By the end of 2015, mobile share
is forecast to reach 33% in the US, and 40% globally. According to report by Criteo US Mobile
transactions grew 10% in 3 months. Growth continues across all retail categories, especially
with top quartile retailers. It’s all due to smart phone wide usage in most countries, smart phone
are now the majority in mobile transactions. There is no limit to it and for the first time Japan
and South Korea had over 50% of their e-commerce transactions on mobile. Consumers view
the same number of products on smart phone and desktop sites.
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Figure 6.0 Source: Criteo, 2015.
In Q4 2014, mobile accounted for 27% of retail e-commerce transactions in the US. In Q1
2015, that figure has risen to reach almost 30%. Mobile share of e-commerce transactions for
the top quartile retailers has increased to 38% in Q1 2015.
M-commerce is now 34% of all e-commerce transactions globally – based on an accurate
weighting of e-commerce market size by country. Mobile share is slightly lower in the US than
the global average with 29% of e-commerce transactions coming from mobile devices. For the
first time ever, Japan and South Korea had the majority of their e-commerce transactions via
mobile in Q1 2015.
Figure 7.0 Source: Criteo, 2015.
Fashion and Luxury retailers have the highest share of mobile transactions with Mass
Merchants as a close second. In contrast, the share of mobile transactions are low in the Home
category, which includes home improvement and interior design products. While these are less
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“impulse” purchases, we often find conversion rates are driven more by the quality of the
mobile site experience. The move to e-commerce is repeating itself: leaders are seeing a very
rapid growth in m-commerce.
The majority of mobile transactions in the US come from smart phone, more than share of
smart phone transactions in the UK and Germany. Even though the translation rates on smart
phone are lower than desktop or tablet, smart phone generate more transactions due to
significantly higher traffic. With the introduction of larger screen-sizes, such as with the iPhone
6 and Samsung Galaxy, consumers are finding smart phone a convenient way to complete
purchases. Smart phone share of mobile transactions will continue to grow.
All the mobile payment transaction are made possible either by using the e-wallets or mobile-
payment smartphone apps. E-wallets is an online prepaid account where one can stock money,
to be used when required. As it is a pre-loaded facility, consumers can buy a range of products
from airline tickets to grocery without swiping a debit or credit card. Most preferred mode of
payment is e-wallets as everyday transaction with 19% respondents as per survey done by
Nielsen on February 2014.
Mobile-payment smartphone apps are powered by near-field communication (NFC)
technology is growing fast than e-wallets. With the ease of mobile apps, consumers can tap
their phones to a POS device for payment where it reads customer’s prepaid card details and
made NFC payment possible.
Other than e-wallets and mobile-payment smart phone apps there are other alternatives
currently being use.
Charge to Phone Bill with SMS Confirmation, this payment method is easier than entering
credit card and other information on smart phone. It requires users to set up an account with a
payment company, famously introduced by Zong where it was been acquired by eBay in 2011
and later owned by PayPal. An SMS with pin number will be sent and to be keyed-in to the
website for transaction completion. Amount paid will be charged to the phone bill.
Phone-Displayed Barcode That Retailer Scans, this method will generate a QR code on user’s
phone which it will later be scanned by retailer where amount will be deducted from customer
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pre-paid account (this account has been established at the first place). All this made possible
by using retailers application installed on the smart phone and reads by the POS system.
Transfer of Funds from Payment Account Using SMS, using a mobile phone and SMS, user
can transfer money to anyone else with a mobile phone number. But user have to transfer
money to the online account first from a bank or credit card. The receiver must create an
account at the payment company to retrieve the funds.
Mobile Phone Card Reader, this approach requires mobile phone users to insert a small card
reader into the audio jack of mobile device. The card reader allows to make or receive credit
card payments without a merchant account.
User Scan of QR codes Generated by the Retailer, buyer scans the merchant’s QR code using
a mobile app then approves a fund transfer when it shows up on the device. Person-to-person
transfers are also possible because the app can generate custom QR tags that individuals could
scan from one another’s mobile device.
Mobile Bill Payments, a number of companies are now providing option of paying bills directly
from mobile device in addition to the current wireline banking and ATMs. This method is a
preferred method for mobile users who do not have bank accounts.
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4.0 E-COMMERCE IN ORGANISATIONS
Now we will look at 2 established organisations that have implemented e-commerce approach
in their business; Tesco PLC the 2nd largest hypermarket retailer in the world and Jetstar
Airways the Australian based low-cost airline carrier.
Both companies involved in e-commerce in their daily business operation. As for Tesco they
are using the website and mobile apps to showcase their selling item as per sold in their physical
outlet, from groceries to cleaning items. As for Jetstar other than booking and selling airline
ticket at the authorized centre and agent they have fully utilized the same method using website
and again mobile apps to enable customer to book and purchase the airline tickets.
We will look on the processes and method for both organizations on their e-commerce practices
in enabling customer to execute the purchasing activity.
4.1 TESCO
Tesco is originally from United Kingdom founded in 1919 and has expanded its business
globally. Tesco can be found in 11 countries; UK, India, Malaysia, Thailand, Czech Republic,
Hungary, Ireland, Poland, Slovakia, Turkey and China (Tesco, 2016).
As for Tesco’s e-commerce practice, we will use Tesco Malaysia’s as subject in the discussion
and analysis. If customer or visitor visited the Tesco’s Malaysia website www.tesco.com.my,
visitor will be feed with a lot of information on Tesco’s Malaysia such as Promotions, Club
Card, Tesco Brand Products, Store Locator, Tesco Malls and Contests (Tesco Malaysia, 2016).
But our focus is to study the process of purchasing or making an online transaction on Tesco’s
web services.
Figure 8.0 Source: Tesco Malaysia, 2016.
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4.1.1 Customer View
Visitor or potential customer could straight away view the selling products from the website.
For instance, normally customer is easily attracted on items that are on promotions. Once the
promo item is clicked customer will see the product info with pictures, price and the promo
period with Buy Now option. If the Buy Now button is being clicked customer will be directed
to secure website with different web address https://eshop.tesco.com.my. This web page is the
main page for Tesco’s electronic shop; where product viewing, selection, purchase and
payment will be made.
4.1.2 Shopping Experience
In order to buy item from Tesco E-shop, customer must create and register a valid Tesco
account. Starting at first step in providing a valid email address account for registration,
followed by address information insertion at second step. This process is very important as not
all area is covered by Tesco for delivery. Final step, keying-in of personal customer details
such as full name, telephone number, and acceptance of Terms & Condition must be agreed
upon and must be completed.
Figure 9.0 Source: Tesco Malaysia, 2012.
As the online shopping experience in Tesco Malaysia referring to the graphical flow above
customers need to select items that they wanted to buy. Items can be searched according to
category, department, brands or general key words; such as soap or perhaps by brand Lux. If
customer had done their shopping before they could mark items shopped as favourites, so next
shopping will be at ease as they need to go favourites to repeat order. For normal process all
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the items selected will be added to Trolley. Once customers have completed shopping and
confirmed all the selected items and put in the trolley, a Check out needs to be done.
After Check out, customers need to choose a time slot for delivery. Nearest Tesco will be
selected based on the delivery address as per keyed-in by customer during registration process.
Customer will be shown a time table slot for delivery. Delivery will be done only on the next
day or other option is self-collect by customer at the selected Tesco the next day. Daily delivery
time is from 8:00am until 10:00pm 7 days a week. Delivery charges will be imposed if the
delivery time is between 8:00am 12:00pm daily. Shopping items for delivery will be prepared
and packed on the same day of the delivery schedule. This is to maintain the latest item from
shelves are being collected.
Customers will only be charged for shopping once ordered items are delivered and well
received; where all shopping items are correct and in good condition. Because of this method
customers have the privilege to amend order before 11:00pm, a night before the delivery day.
Payment is done by using credit card or debit card. Payment can be made fully online (pre-
authorized and secured) or at the door; where card payment device will be used at customer
premises.
Delivery will be done in a controlled temperature transportation. This will ensure the freshness,
quality and safety of items been delivered as far as food safety is concerned. Should there be
any unwanted items or ordered items that customers do not want to receive for certain reason
or for no reason at all, they could return it straight away to the driver during the delivery time.
Any discarded order items will not be charged.
Shopping amount will be only charged based on the exact items that customers have received
and payment will be taken from customer at the end of the day of delivery. In this case it will
be charged to the credit card or debit card.
What Tesco has done on their e-commerce and online shopping has helped a lot of customers
in purchasing daily items with the use of their fingertips and hassle-free. Due to hectic working
life or schedule and bad traffic situation this method is really suitable in ensuring purchasing
for basic amenities such as grocery, clothes and other essential products can be carried out.
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4.2 JETSTAR
Jetstar Airways Pty Ltd, trading as Jetstar, is an Australian low-cost airline (self-described as
"value based") headquartered in Melbourne, Australia. It is a wholly owned subsidiary
of Qantas, created in response to the threat posed by low-cost airline Virgin Blue. Jetstar is part
of Qantas' two brand strategy of having Qantas Airways for the premium full-service market
and Jetstar for the low-cost market. Jetstar carries 8.5% of all passengers travelling in and out
of Australia.
The airline operates an extensive domestic network as well as regional and international
services from its main base at Melbourne Airport, using a mixed fleet of the Airbus A320
family and the Boeing 787 Dreamliner. Like its Qantas parent, Jetstar competes with Virgin
Australia and its fully owned low-cost subsidiary Tigerair Australia. Qantas, through the Jetstar
Group, also has stakes in sister airlines Jetstar Asia Airways, Jetstar Pacific Airlines and Jetstar
Japan. For this particular study we will look at flight booking and purchasing experience.
Based in Singapore, Jetstar Asia’s inaugural flight took off for Hong Kong on 13 December
2004. Now Jetstar fly to 22 popular destinations in North and Southeast Asia with a fleet of
18 A320 aircraft. Jetstar Asia is a majority Singapore held and based company, managed by
Newstar Holdings Pty Ltd, majority owned by Singapore Company Westbrook Investments
Pte Ltd (51 per cent), with the Qantas Group holding the remaining 49 per cent.
Figure 10.0 Source: Jetstar Asia, 2016.
Once passenger has keyed-in www.jetstar.com he/she be brought to the main homepage.
Straight away they will see search flights function; from where and to where. And latest
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promotion on flight tickets will be shown too. With simple design and easy to understand this
will enable user to do information search easily.
4.2.1 Searching and Booking
First, what passenger need to do is; to define from where will to departure and to where is to
arrive. Secondly, they need to select the travel date. Is it a two way return flight or it is a single
flight journey?
Followed by how many passengers will be in the flight. There is option on children travelling
alone and travelling with infants. All these options can be selected.
Since Jetstar is a low fare flight passenger have the option to select lowest fare flight ticket but
lowest fare date and option is decided by Jetstar’s system. If traveling date is same as the system
suggested then it is the passenger’s lucky day, they’ll save a lot.
Figure 11.0 Source: Jetstar Asia, 2016
When selecting flight just make sure to get the right travel time that as per desired or as per
planned. And ensure whether is there a need to select all the extra add-ons such as on board
meal, extra weight baggage, seat selection as per offered in the selection. All these add-ons will
be charged on top of the normal flight rate.
After selecting flight tickets, at the right of the page the Booking Summary can be seen; all the
information on charges.
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After flight tickets have been selected, passenger details need to be filled in. All personal
information must be accurate as per travelling document or passport. Passenger also has the
option to create an account with Jetstar or remain as visitor. It is recommended to register as
registered user as the next flight booking will be a lot easier because Jetstar had the passenger
data been recorded.
4.2.2 Purchasing and Payment
Once the passenger information have been inserted payment will have to be made. Jetstar offers
several convenient payment options that can be choose from.
Paying by Credit Card
Jetstar accept international Visa, MasterCard, Diners Club and UATP cards for credit card
payment. American Express is available if flight is operated by Jetstar Airways (JQ) or Jetstar
Asia (3K) or Jetstar Japan (GK). A Booking and Service Fee will apply. Australian residents
can pay with a Jetstar MasterCard or Jetstar Platinum MasterCard and avoid the Booking and
Service fee.
On selected routes, it is a condition of sale, check-in and boarding that the original, physical
credit or debit card used to purchase the ticket(s) must be presented by the card owner for
verification at the airport. When passenger book travel on these routes, they’ll be informed
of the need for verification during the booking flow. Prior to check-in, the card owner must
take the card together with their government-issued identification (such as a passport, identity
card or driver’s license) to the Jetstar check-in counter. This requirement applies irrespective
of whether the card owner is a part of the travelling party. If the card is not verified, the
passengers whose tickets were purchased with that card may be denied check-in and boarding
at Jetstar’s sole discretion. One verification is required for each return journey.
Paying with A Jetstar Voucher
Vouchers issued by Jetstar can be used for part or full payment of fare. Please note that
vouchers can only be used once and any unused portion of the value of a voucher will be
forfeited. No Booking and Service Fee applies. If there is a balance remaining to be paid,
customer/passenger must pay this balance with another voucher or by credit/debit card on
Jetstar.com. A Booking and Service Fee will apply if passenger choose to pay the balance
with a credit/debit card.
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These are our payment options for payments made in Malaysian Ringgit (MYR). For payment
in other currencies, different payment options are available.
If looked at Jetstar Singapore there are more options on payment method other than Credit
Cards and Jetstar Vouchers alone, below options are being offered:
Paying by 7-Eleven and SingPost
Passenger can pay their booking at SingPost (Post Office, SAM Kiosk, SAM Web and
Mobile) or 7-Eleven stores in Singapore.
A Booking and Service Fee applies for payments made at Singpost and 7-Eleven in
Singapore.
Offline payment via SingPost or 7-Eleven is only available up to 14 days prior to departure.
If passenger wish to make a booking to fly within the next 14 days they must use another
payment method. They must complete their payment within 48 hours of booking. If they do
not, they will need to make a new booking. Please allow 48 hours for the confirmed itinerary
to be sent once payment is made through SingPost or 7-Eleven.
Paying with Paypal
PayPal is available if flight is operated by Jetstar Airways (JQ). If passenger choose to pay
via PayPal, they will be redirected away from the Jetstar website. A Booking and Service Fee
will apply. Payment options for payments made in Singapore Dollars (SGD). For payment in
other currencies, different payment options are available.
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4.2.3 Flight Ticket
Once payment have been complete flight ticket will be emailed to the passenger. This ticket
need to be printed and presented to the check-in counter during departure day for flight
boarding verification purposes.
Figure 12.0 Source: Jetstar Asia, 2016
Passenger also has the convenient way to do online check-in prior to departure. If there is no
baggage to check-in only hand-carry it will be a lot easier, once the online check-in is done
passenger can print the boarding pass themselves and straight away go to the boarding gate.
Even if there is still baggage to check-in time at check-in counter with online check-in will
be less because most of the check-in processes has been done by passenger or customer. By
the end of the day what a customer or passenger wants is a hassle free and joyful flight
experience.
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5.0 WELL KNOWN ORGANISATION - SPORTS DIRECT
5.1 The Organisation and Business Operation
Figure 13.0 Source: Sports Direct, 2016
Sports Direct International plc. The Group commenced trading as a single store in Maidenhead,
founded by Mike Ashley in 1982. Sports Direct expanded to become not only the UK’s leading
sports retailer by revenue and operating profit, but also the owner of a significant number of
world famous sport, fashion and lifestyle brands (Sportsdirect, 2016).
Currently operated 420 sports stores in the UK alone, the majority of which trade under the
SPORTSDIRECT.com fascia. The Premium Lifestyle division operates 130 stores in the UK,
under fascia’s which include Flannels, Cruise, USC and Van Mildert. Internationally growth
has proven unrelenting, with products being offered via wholly-owned retail outlets, joint
ventures with other retailers and stores in other retailer’s stores. Currently operated 270 stores
in 19 European countries, and their strategy is to expand into all major EEA countries over the
next 3 - 5 years.
From the local SPORTSDIRECT.com high street store to the famous Lillywhites store in
London’s Piccadilly Circus, there is a sure to be a SPORTSDIRECT.com store, offering an
incredible choice of football boots, running shoes, football kits, fitness clothing and much
more. Alongside retail outlets, www.sportsdirect.com provides a full multi-channel approach
to improve shopping experience. The site gives access to a huge range of quality sports apparel
being sold by retail partners, which can be arranged to have delivered to customer’s door from
their extensive online catalogue.
Although Sports Direct do not provide delivery services outside of the UK, these services can
be provided by Barlin Delivery Limited, an independent third party that customer can contract
with for overseas delivery via the site. Whether a beginner or a professional, Sports Direct
diverse product range will assist to train and improve in chosen sport or activity.
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Key-People and Leadership
1. Dr Keith Hellawell QPM (Non-Executive Chairman)
2. Mike Ashley (Executive Deputy Chairman & Founder)
3. Dave Forsey (Chief Executive Officer)
4. Matt Pearson (Acting Chief Financial Officer)
5. Simon Bentley (Senior Independent Non-Executive Director)
6. Dave Singleton (Non-Executive Director)
7. Claire Jenkins (Non-Executive Director)
The Group employs over 27,000 people, across 19 countries and various sectors, from Sport,
Fashion, Lifestyle, Gyms and Brands, and their people that makes the Sports Direct Group such
a success (Sportsdirectplc, 2016).
5.2 Vision and Mission
Sports Direct's mission statement is to sell sport clothing and equipment at low prices with the
highest quality and customer service. EXCEPTIONAL QUALITY, UNBEATABLE VALUE.
Sports Direct's key principles are to:
Identify – Brand acquisitions and property enhancement.
Invest – Store portfolio and employees.
Develop – Website and m-commerce, enhanced product ranges.
Promote – Group-owned brands.
The Group operates through three strategic business segments: Sports Retail, Premium
Lifestyle and Brands.
Sports Retail
The Group's Sports Retail division supplies a wide range of sports and leisure equipment,
across an array of global brands, including Group owned brands such as Dunlop, Slazenger
and Lonsdale, third party and licensed-in brands This wide range of products, combined with
extremely competitive pricing, attracts customers to both stores and website in ever increasing
numbers.
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Premium Lifestyle
The Premium Lifestyle division is a must for those fashion conscious shoppers who demand
high-end and on trend apparel. The division centres on contemporary luxury with a brand focus,
and leading stocked brands include Paul Smith, Fendi and Alexander McQueen. The division
enables customers to express their individuality, with new collections regularly being added.
Recent additions include White Premiata, Carven and Canada Goose.
Brands
The Brands division licenses Sport Direct’s brands to partners across the world through a
committed network of licensing and distribution partners. The unique, integrated approach to
brand management ensure consistency, and encourages continual investment and global
success for the brands.
5.3 E-Commerce Practice
Figure 14.0 Source: Sports Direct, 2016
To be able to buy via SportsDirect.com customer will need to register an account with Sports
Direct. To do this customer will need an email address and a contact phone number. Setting up
an account will also allow customer to order without having to fill in name and address details
every time customer shop and will also give additional benefits such as regular newsletters,
customer also be one of the first to know when there will be special offers and discounts. Once
registered, customer can update details using the My Account section.
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Figure 15.0 Source: Sports Direct, 2016
My Account allows customer to manage customer existing account online. Customer can check
account details, change password, delivery addresses and make payments online.
Secure Login
Shopping online with Sports Direct is safe, all personal and account information that is held
within my account is fully protected.
Instant Access
Access account 24 hours a day, 7 days a week. Customer can also receive fantastic offers via
email.
Order History
View order history and current addresses.
Secure Payment
Make secure online payments.
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How to Shop?
To find a product customer wish to buy customer can either search by description or by product
code using the search facility located in the top right hand corner of the page. Alternatively if
customer see an area of interest use the categories displayed down the right hand side of the
site. This will guide customer to a product listing and when customer click on a product this
will take customer to the product page. From the product page customer can add the product to
customer basket.
Payment
The payment pages used at SportsDirect.com are secure and customer can safely enter
customer card details to pay for customer order. Sports Direct accept the following methods of
payment: Mastercard, VISA, VISA Debit, VISA Electron, Maestro, American Express
(AMEX), PayPal and Gift Cards.
Please select the desired payment option and proceed to the next page where customer will
enter the card details. Based on the type of card customer are using for payment, customer may
then be asked to enter further details to enhance the security of the transaction. This request of
information comes direct from customer card issuer and relates to a password that identifies
customer as the authorised user of the card. If customer do not have a password set up customer
can do so online during the transaction.
All credit and debit card holders are subject to validation and authorisation by both us and the
card issuer, to maintain security and prevent fraud. Internet Fraud is Illegal and perpetrators
will be prosecuted in all cases.
Payment Authentication
Payment authentication or 3D secure are fraud prevention initiatives launched by card issuers.
Verified by Visa (VbV) and MasterCard Secure Code (MSC) work in the same way. The
authentication works by using passwords which are set up by customer or card holder to protect
when shop online.
Many customers register their payment authentication with their card issuer. However, if
customers have not registered their card, they can register during the transaction. Customer
should enter card details and set a password in the secure window. Once customer have
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registered their card, when customer shop online in the future they will only have to enter
password.
Customers should have received information about the payment authentication process from
their card issuers. If customer require more detailed information or encounter a problem with
the authentication process, please contact the card issuer directly. Unfortunately Sports Direct
has no control over the payment authentication process so Sports Direct will be unable to assist
with any authentication enquires.
Order Confirmation
Once customer have placed order customer will be presented with an order confirmation screen
detailing what customer have bought, how much it cost and delivery options. At this time
customer will also be sent a confirmation by email re-stating the details for customer records.
This email does not however indicate that customer order has been or begun to be processed
or a confirmation of contract of purchase.
Once processed, customer will receive a second email from Sports Direct detailing what
customer have purchased and confirming that order has been processed. For UK deliveries,
Sports Direct will also inform customer on the tracking reference number. If customer have
contracted for overseas deliveries, Barlin Delivery will confirm that they have collected
customer goods for delivery to customer and inform customer on the tracking number. By
clicking on the tracking reference link customer will be taken to the courier's website where
customer can see the progress of customer delivery.
Custom Charges and Import Duties
If customer order goods from Sports Direct site for delivery outside the UK, they may be
subject to import duties and taxes which will be levied when the order reaches the delivery
address. Customer will be responsible for payment of any such import duties and taxes. Neither
Sports Direct nor customer overseas delivery provider Barlin Delivery Limited, have control
over these charges and cannot predict their amount.
Delivery
Sports Direct only deliver to UK addresses. Barlin Delivery Limited may provide international
delivery services to international customer. Customer can see a full list of countries that Barlin
Delivery Limited delivers by viewing this delivery table.
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5.4 E-Commerce Growth
Sports Direct International plc reported a 43% rise in online sales, which now account for
15.5% of its total sports retail sales (IREU Top 500, 2013).
Sports Direct International plc reported group revenues up by 23.5% to £1.34bn in the 26 weeks
to October 27 compared to the same time last year, with UK sports retail sales up by 13.4% at
£903.3m. International sales grew by 30.8%. Pre-tax profits grew by 14.3% to £143.1m. The
company aims to expand overseas, opening for business in all of the major economies present
in the European Economic Area in the next three to five years.
5.5 E-Commerce Proposal Enhancement
Sports Direct has a good customer oriented webpage and user friendly customer navigation in
products browsing. However there are still improvements to be made that could enhance the
marketability of e-commerce. Following suggestions and proposal will be considered good and
will enhance Sports Direct e-commerce practice.
5.5.1 Amazing Testimonials
Potential customers are more likely to make online purchases if there are testimonials to ensure
them that the retailer provides quality. Make sure reliable and honest testimonials are included
on Sports Direct product page with the name of the customer who wrote it. To get these, Sports
Direct can ask customers to provide a testimonial via email after the delivery is made.
DeoVeritas.com below does a terrific job selling custom dress shirts. They also have
testimonials on the homepage.
Figure 16.0 Source: Deo Veritas, 2016
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5.5.2 Instant Chat
Include an instant chat option to your site and have a sales rep get in touch with the visitor as
soon as they arrive on your site. This way, if they are looking for something specific, they can
find it with your help more conveniently while you get the chance to up-sell or cross-sell.
Should there be any problem customer could get fast response rather than to wait for email
reply.
It’s a simple image that is on the bottom of the site (or with the scroll) just promoting people
to chat with you. Live Chat, Bold Chat, Live Person & Kayako are some of the most popular
Instant Live Chat services.
Good example is from AirAsia. AirAsia provide live chat service on any query for fast response
to customer or passenger.
Figure 17.0 Source: AirAsia, 2016
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5.5.3 Large Encrypted Fence Logo
Security is the biggest concern when customer shop online since they can’t see the actual
products. Therefore, make sure you satisfy them through proper refund and return policies and
by using security verification programs like the one from VeriSign which is now powered by
Symantec. Sports Direct should highlight these on their website so that customer won’t have
to look hard to find them. Highly recommend using Verisign. If a website is powered by it
customer will see a logo like below (usually in the footer or on checkout pages):
Figure 18.0 Source: Symantec, 2016
5.5.4 Incentives upon Register
Websites that require people to register before making a purchase see more unfinished deals
than those which don’t ask. Most people are reluctant to register. However, the scenario can be
turned around in Sports Direct favour with the help of incentives. Offering a discount or reward
to customers on their first purchase after registering can give them the right motivation to
register at their site. Make these simple design changes on Sports Direct e-commerce platform
and see how its performance improves in a short time.
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6.0 CONCLUSION
With the latest technology on computerisation, communications and system everyone is
connected to each other thus information and update could be exchanged in real time. This
makes every situation is crucial for every individual and organisation in getting the best method
in achieving goals that will benefit all.
Data have been showed statistically with graphs; for example on how Android and Samsung
controlling the global smart phone market.
Knowledge on smart phone usage have been discussed how it benefits its users; fundamental
capabilities to make voice call, video call, SMS, and MMS. In other words, smart phone have
extended list of information processing functionalities such as Wi-Fi, GPS, high resolution
touch screen with ability to access email and Internet, managing personal time schedule, editing
documents and images, and many other applications based on specific function and task.
We have gained on broader understanding the smart phone user consumer behaviour and
mobile commerce. Knowledge and understand the needs, benefits, expectation and objectives
are. From getting just a mere information, we’ve learned on executing tasks from mobile apps
to making online purchases with valid references and practices which is really crucial in
generating business worldwide.
Vast evolving communication and technology has pushed the e-commerce and m-commerce
to a new level. Growth continues across all retail categories, especially with top quartile
retailers. It’s all due to smart phone wide usage in most countries, smart phone are now the
majority in mobile transactions.
We also learned on online payment security measure through Tesco, Jetstar and Sports Direct
discussion. On how credit card is being used for online payment that requires payment gateway
that protect customer from security breach from hackers on identity and information theft issue.
How opening an account with online retailer will help costumer in the long run.
In understanding and analysing processes of e-commerce on Tesco, Jetstar and Sports Direct
have educated us the benefits we gained by performing services that they offered. We could
save a lot of time in doing shopping selection and we could make a better choice before
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purchasing process takes place. Flight ticket purchasing experience could never be easier than
before, with online booking and purchase passenger has the ability to plan easily on travelling
schedule without any difficulties.
Enhancement of e-commerce that have been proposed to Sports Direct shown that there are
still lacking in their e-commerce practice. These proposals once implemented will boost their
e-commerce functionality that will attract more business.
Finally, all topics that have been discussed, analysed and understood is for educational
purposes in comprehending the importance of technology on consumer behaviour, smart
phone, e-commerce and m-commerce which now became really essential to our daily life and
globally whether individually or organisationally.
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7.0 REFERENCES
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20. Sports Direct, (2016). Customer Services. About Us. Retrieved from
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transition
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