The introduction of smart and innovative technologies and mobile phones has incorporated a huge transformation in the technological field. The inventions and the innovations has transformed in the desires, tastes, preferences and needs of the customers. There has been various technological developments out of which mobile phones have been accepted widely as a device in the current lifestyle(Kimet al. 2015). The initial mobile phones have undergone various changes and revolutions and in the current time period individuals make use of the smart phones which has various features and capabilities. In the current time period, the smart phones have developed to be a fundamental part for the purpose of daily personal and commercial communication all over the world. The retail market for mobile phones are offline and online in nature and there are various factors that have an impact on the choices of the customers. There exists a competition among the manufacturers in order to gain their competitive edge and the factors that are differentiating in nature for influencing the consumers to choose their products rather than of the competitors.
There have been numerous researches that have been undertaken and the researches have recognised various factors that have an impact on the purchasing power decisions of the consumers with respect to purchase of the mobile phones and even the factors that makes a company better than the other. These characteristics are generally associated with the attitude of the consumers and the characteristics of the phone. Therefore, the organizations have developed numerous styles and features of mobile phones with various features in order to satisfy numerous market segments(El-Adlyand Eid 2015). Hence, the selection of the consumers is one of the key aspects with the kind of the mobile phones that are available in the market and the profit generated from the mobile phone organizations.
The choice of the consumers is another key aspect with respect to the other features that have an impact on the purchasing decisions. In the current time period with the advent of new and improved technologies, the market has expanded with the help of internet too as online shopping has even come into existence(Mohamadet al. 2017).
The use of mobile phones and internet has given access to the individuals to the international market in order to look for any sorts of products at anytime from anywhere. It has enhanced the customer convenience for shopping and receiving any sorts of information with respect to the topic. In this respect, it is seen that online shopping has developed to be popular within the various kinds of shoppers around the globe(Thye Goh, MohdSuki and Fam 2014). Conversely, there are various extra factors that have an impact on the choice of the customer with respect to purchasing from the online retail websites. Hence, this paper has been undertaken with the help of which the factors that are existent in the UAE market with respect to online purchases can be understood.
The market that is existent in UAE is a developing one and there has been further development with the advent of online retailing. The rise in purchase of products through online retailing has increased the use of the smart phones. Hence, there is a direct relation among usage of smart phones and purchase through online websites. The development of the electronic commerce was first initiated during the 90s in the global market. UAE has been one of the largest global oil producers and e-commerce has still been in the process of development(Shaikh and Karjaluoto 2015). The market of UAE is a huge one and there is enough scope for the development of online retail shopping in the country. In the current time period cell phones have become an essential commodity in the social life among the individuals and around 80% of the consumers in UAE have a smart phone in comparison to the world wide aggregate of 42%. In the earlier time period the smart phones organizations mainly focus on the commercial users who are in the requirement of internet at all times in order to get access to emails. There are numerous factors that require to be taken into consideration when discovering decision process of purchasing mobile phones that is inclusive of the macro and micro economic scenario that have an impact on the online shopping(Almehairiand Bhatti 2014). It is known that mobile phone market is a distinct technology driven market where the products were established before the identification of the currently identified needs of the consumers.
The use of smart phones has generated a lot of recognition and is regarded to be effective equipment. The mobile phones are being utilised for the purpose of entertainment as new and improved features have been introduced every day(Chopra 2016). The mobile phones have become more than making and receiving calls but have business related applications as well. With the developing technology, the smart phones have become something more than communication tools and have become devices that are way ahead of their competitive and peer devices at the current period.
The online retail market of UAE has been expanding during the present years. As the nation has been undertaking developments in incorporating the innovative technologies, the online shopping has developed to be very popular. The rise in the use of the smart phones and internet by the UAE users, the online marketers have discovered a huge base of customers in the market of UAE. With respect to the business in UAE, the online sale is anticipated to rise by the year 2019. As the confidence of the customers is rising with respect to online security, this thing has been reflected in the sales in online retail. It is discovered that this kind of sales was compelled by the advent of globalization in the economy, simple access to the international brands and markets, the customers becoming more classy and confident about the quality of the product, rapid home delivery, security of information and financial factors(Rasheedand Anser 2017). The customers have to generate a profile while undertaking purchases with the online retail stores and this information is secured effectively in the data base of the organizations. This is inclusive of all sorts of personal data, most significantly the financial data like the debit and credit card numbers. The probability of fraud is very high and therefore security process requires being effectively proficient in order to secure the data of the consumers. The consumers are increasingly cynical with respect to financial security during online transactions and therefore in order to make the profit in this area, the retailers needs to safeguard the consumers about the fact that their information is secured(Rouibahand Al-Qirim 2-17).
With the rise in online retail sales in the UAE market, there has been an observation that the confidence of the customers has increased. There has been a rise in the sale of mobile phones along with the other the retail products. There are various factors that ascertain purchasing behaviour of the consumers from the online websites. The choices of the consumers with respect to mobile phone has been affected by various factors like speed of delivery, quality, price and other review of the consumers and the policy of exchanges and returns. The research rationale of the thesis has been to discover the factors and their effect on online purchasing purpose and attitude of the consumers in the online mobile retail market of UAE. This thesis would aid in revealing the impact of culture of UAE on the shopping attitude and the environmental effect on online shopping(Nadiri 2016). The retailers of online shopping of mobile phones will be profited from this thesis as they would be able to discover ways to attract more consumers and generate profit. Therefore, the retailers will be interested for this research.
The research aims are as given below:
The objectives of the research are as given below:
The research questions have been constructed with respect to which the research thesis would move forward and thereby answer the issues with respect to which this thesis has been undertaken.
The research scope with respect to this thesis has been to address on various aspects of the online shopping in the market of UAE and buying the purchasing attitude of the consumers. It looks to provide a benefit to the other authors in the coming time in order to assess the numerous regions in this respect so that the marketing techniques and plans can be enhanced for the purpose of mobile phone retailing. There are numerous cultural and demographic factors that requires to be exploited in order to discover their effect on the selection of the consumers while undertaking decisions related to purchases. This would assist the retailers to construct their marketing plans in that manner.
The market for mobile phones has been the most unstable one due to the rise in the level of competition and transforming needs of the consumers. It has been a factor of concern for the management of the cell phone organizations to assess the transforming trends of the purchasing decision of the customers and establish the products effectively in the market (Hashem, Hashemand Hashem 2017). The review of literature will focus on the demand of the customers and their aspects in selecting the retailers during the purchase of a mobile through online process. The key themes that will be covered in the review will be the issues linked with the social class, purchasing behaviour, marketing, age, gender; branding and pricing that inspire the consumers to purchase new cell phones.
According to Thaichon, Loboand Mitsis (2014), the selection of the cell phone is a subjective choice of the consumers but there are various factors that play a key role in assisting the consumers in selecting the online retailers of cell phones. It has been an observation that price plays a key role in ascertaining the brand value and selecting the online retailers accordingly. The purchasing attitude of the customers is ascertained by two key factors and they have been the individual factors and the environmental factors. The environmental factors are inclusive of the culture, family, communal class, and household. Furthermore, the usability is a key aspect which ascertains the choice of the customers in buying phones online.
As cited by Ezzi (2014) the data related to online brand is hugely affected by the purchasing decisions of the consumers which is considered as a key topic for fundamental research in the purchasing attitude and marketing of the customers. Ezzi (2014) further cites that product evaluation sites that are called the third party websites aid the customers in selecting their buying decisions. Furthermore, the source that is online in nature provides evaluation with other sources and therefore the assists the external research of the customers by mitigating the cost of search. This third party sources are useful for the study as it is goal oriented information and recommendations that are linked commercially.
Kim, Wangand Malthouse (2015) addresses that in certain scenarios the customers dishonour the suggestions given from the third party sources if it does not provide any authentic information about a specific brand. Shafiq, Obeidat and Young (2017) discovered that online suggestions from numerous independent websites are more dominant than the third party websites. Tandon, Goeland Bishnoi (2017) cites that these websites are even observed to be of very vital in giving out the authentic data. The online purchases of the smart phones even explain the level of uncertainty among the customers. It becomes problematic for the customers to discover the distinct attributes of a specific brand and therefore it may raise the uncertainty among the customers to purchase a product. In order to mitigate these uncertainties, the consumers prefer to buy smart phones by going to the stores for receiving more explained information. The customers even favour to select the producers or the retail service outlets who would assist them in receiving the information related to the product in an effective manner. These factors are essential for this research as knowledge about the fact that the customers even assess the websites of the mobile phone manufacturers to discover the various alternatives with respect to a specific brand so that the retailers can have knowledge about the informed selection of the consumers. The brand associated information will act as an external evidence which the customers look to trust in order to identify the potential alternatives and their behaviour towards the other products.
The characteristics of the consumers determine the online purchasing behaviour of the consumers. Baena (2016) debates that there are various sources of online data that may be different and therefore their influence on the buying decisions of the consumers will be different considerably. Furthermore, Baena (2016) addressed that the consumers who have increased level of apprehensive attitude towards the understanding of online retailers will assist the other users in gaining the sense of security. Therefore, it can is said that the consumers are not satisfied to spend more effort in searching for the retailers or any data associated to the purchase of smart phones.
Suki and Suki (2017) have stated that the affiliation among the choice of the consumers to purchase online and the characteristics which has an impact on these decisions is variant accordingly. Suki and Suki (2017) explained that it is essential to undertake a research on a specific explained population which will assist in recognising the factors and the characteristics of the phone. Furthermore, this will even assist the consumers in selecting the online stores. The individual traits of the consumers, the acceptance of the technology and the recognized risk even assists the consumers to select the online stores.
Alshurideh (2016) has stated that there are numerous factors that are explanatory in nature that are inclusive of the simplicity of use, anxiety, usefulness and price has been the key parameters which assists in assessing the purchasing decisions of the customers. It is even explained that the price not only acts as a favour to the shoppers but even has an impact on the consumer’s online shopping attitude. He further states that the effect of the entrenched culture of the consumers on the word-of-mouth, loyalty and post-delivery satisfaction may even be different. There may be certain key association among the type of serviceable culture and the type of relational culture which is looked upon as a key factor for online shopping.
Marinkovic and Obradovic (2015) explained that the availability of detailed information is even another factor which supports the buying decisions of the consumers. The simplicity of use is even a vital feature, which inspires the consumers to buy the product through the online process. There are variable impacts of the suggestions, which are given by the review of the customers in the method of online shopping. This is the information that addresses the ease and effectiveness of usage of the commodity are more significant than the customer feedback. The ones that make use of the consumer feedback try to address increased beliefs and trusts about their efficient quality rather than the users of the other phones. Furthermore, information that is associated to the customers like the behaviour and the attitude of the online consumers, transformation in the behaviour of the consumers, literacy of the consumers, age and anxiety are key aspects as well.
As cited by Kamoun and Halaweh (2016), it has been discovered that various organizations face significant amount of losses due poor and bad customer feedbacks. They further add that the consumers are not satisfied and happy with the services and products offered by the online companies and hence as resulted to losses in the e-commerce market with respect to their competitors. The modern social networking websites have brought in added benefits to provide entry to various networks among the numerous online channels. The perspectives explaind is relevant to the online purchase of mobile phones as the customers before purchasing the phone assesses the ratings given by previous users and any kind of negative feedback can have an impact on the online mobile phones purchases.
The organizations are forced to compete in an environment, which has channels that are diversified in nature. The customer experiences are associated with numerous extensive consumptions and the practical value of the commodity. Kamoun (2016) explained that the customer experience is in nature complex and it helps in duplicating the answers gathered from the indirect and direct interactions among various organizations. The development in the online shopping has been faster in developed nations in the current few years in comparison to the past decade. There exists so much supplementary strategies and channels in the economy and the marketplace which supports in enhancing the sales in the existing marketplace. It can even be explained that the technological equipment has assisted in the even performance in the marketplace.
The incorporation and utilization of the mobile equipment that are available in the market will be bought by the customers at a lower price in comparison to the price placed at the market. Sayani (2015) stated that the widespread development and the usage of internet will raise the number of users of mobile phones and thereby would lead to the unanticipated development of e-commerce business. The devices that are portable in nature have the capability to link with the internet and hence mobile phones are considered as the key part in the customer’s selection of product in case of online shopping. Shen, Cai and Guo (2016) has inferred that mobile phone are looked upon as a strategic significance for the consumers in order to have a normal lifestyle. Mramba (2015) has expressed that the implementation of the online marketing strategy will permit the firm to attract more customers and therefore has the benefit that gives the companies to undertake competitive advantage of the various platforms and thereby get in touch with the customers who are connected.
Another significant development is the progress in the technology in the communication network will assist in the user explained interface. Vashishtha and Kumar (2016) cited that as the customers have huge access to the numerous stores, it is seen that they have the favour to buy the mobile phones by going through the online store websites to have an extensive idea. The completion of the survey has revealed that the consumers visit the online stores from any area. The presentation of the data can be edited for numerous consumers for eliminating the restrictions that are seen in various devices (Bagadia and Bansal 2016). Shaikh, Hanafizadeh and Karjaluoto (2017) addressed that it is essential to exploit a successful united marketing plan that will aid the organizations to construct enhanced relationships and to gain and attract trust and loyalty of the existing consumers. The experience of shopping can even be seen to be induced by several factors, which are accomplished from numerous technological tools.
Brand awareness has been explained as the capability for a consumer to identify and recall that a brand is a segment of a certain product class. This explanation is even inclusive of the brand identification and recall of the brand awareness. Mohamad et al. (2017) explained that awareness for a brand establishes brand identification and popularity in the market. The credibility of a brand has an optimistic effect on the purchasing intention of the consumers. Brand image and awareness are two key factors that leads to the rise in the credibility of the brand for a distinct commodity.
The process of awareness can be undertaken with the assistance of extensive advertisements, circulation of the brand among the market or a nation that imparts knowledge with the help of various promotions and even the use of the social media(Thomas and Carraher 2014). In case of smart phones, the awareness establishes an effect among the consumers that can lead to various decisions making. The process of brand awareness vitally moves the market performance ahead. The performance is even qualified by the organizational and market characteristics of the purchasers (Dahi and Ezziane 2015). This even indicates that the organization sales and the overall sales of the market do have an effect with the help of awareness.
The development of the social media has been one of the key factors that have been fundamental for the development for the purchase of online phones in UAE. There have been several new and innovative tools and mechanisms with the help of which social media can be used for the purpose of improving the level of sales with the help of online purchase of mobile phones.
Banerjee (2014) has explained that the fan pages that are available in Facebook can positively affect the degree of awareness and the rise in the word of mouth and thereby leads to the purchasing purposes. In the same manner, it may even lead to a negative impact on the purchasing decision that is reliant on the critics available in the fan page. This addresses their probable influences on the switching of the brand.
It is seen that the sales in the online retail industry in UAE have imported quite significantly in the previous few years. In the year 2015, the overall sales were around 650 million USD approximately for online retail sales and it is anticipated that by the year 2019, the sale would rise significantly (Alqahtani 2016). The development of tablets, smart phones, laptops and internet has eased the sales in online retailing (Liu and Tai 2016). The population of UAE have been making use of the smart phones and thereby shopping for the consumers have become very easy and convenient. The individuals can undertake shopping at any point of time and from anywhere. The online shopping companies have been providing opportunities and ideas for delivering increased quality and international standard products at the doorstep of the consumers for a delivery charge and in some cases the delivery comes for free (Singh and Singh 2014). Therefore the population that resides in UAE have the access to the commodities in USA and UK and have the benefit and the opportunity to purchase them according to their convenience. The retailers even provide the scope and the opportunity for simple and easy exchange and return of the products that have been purchased by the customers. This has created a dynamic change in the shopping world.
The advancement and development of the technology has created the online shops to overshadow the conventional retail shops. It even addressed that the online retail market of UAE has been going through a game transforming improvements and growth as the giant online shopping organizations are entering the online retail market in the Middle East. The reasonable price, huge product variety and handiness have been the key factors for selecting the online shops and retailers over the conventional retailers. Leaving this behind, the rise in the confidence of the customers in the online sector, developed security characteristics of the online transactions and a wider product variety in numerous online shopping websites has led to the growth of the internet retail stores in the industry of UAE. This has compelled the conventional retailers who are store based to search for various channel marketing plans in order to attract the teenagers and the current shoppers. Therefore, it is constructing the path for the new firms in the e-commerce market and the consumer base has been rising too.
The rise in the mobile phone usage as an electronic device has driven to the increase in online shopping in UAE. The mobile phones along with the application that is available for every retailer has been supporting the retailers and the online stores to undertake a breakthrough in the markets. Leaving this behind, the multinational online retail outlets have initiated to the utilisation of the social media for advertisements and promotions, which is supportive for influencing the consumers. Conversely, it is explained that even though the pattern in online purchasing has been rising significantly fast, the mortar and the retail stores will still be in existence. Certain individuals even prefer to purchase electronic products from the outlets due to a pre-determined perception of better and enhanced quality and it is seen that smart phones even come under the product category. For certain consumers, assessing the phone before they actually buy one is very significant. The feel and the look of the commodity can be experienced best in the conventional outlets and therefore in case of mobile phone purchases, the performance of the smart phones of the conventional retail mobile outlets is much improved than the online retailers in UAE.
The research methodology of the thesis has the purpose of explaining the method that would be used in order to collect the data in a precise way and thereafter conclude the thesis in accordance to the research objectives and aims that have been addressed earlier. The data collection approach has a significant role to play as this assists the authors and the researchers to obtain the information that would be proficient for the research and hence mitigating the possibilities of any false data that is available during the completion of the thesis. There are various sub-divisions in the methodology and each one of them has their significant role and hence every one of them would be explained precisely in this section and thereby researcher would be able to explain the entire process of data collection with respect to the factors that influence customer choices for the online retailers for mobile phones in UAE.
The author in this outline of the methods addresses the research methodology. Furthermore, the researcher makes use of proficient research mechanisms that are fundamental for the accomplishment of authentic outcomes. Additionally, the researcher for this thesis has chosen philosophy of positivism, which is supportive in understanding the real process of the research. Furthermore, the researcher has even chosen the deductive approach as a research approach which may be useful in attaining and enabling the outcome of the thesis. Knobe and Nichols (2013) have explained that deductive method aids in ascertaining the original result for the thesis. Conversely, Pearl (2014) has debated that deductive method does not assist in validating the outcome gathered from the information collected by the researcher. The researcher has selected the descriptive research design for the thesis in order to reach the aims of the thesis.
In this section of research methodology, the research onion has a crucial role to play in efficiently utilising the popular mechanism in this thesis. Furthermore, the researcher with the assistance of the research onion, gains efficient outcomes for the thesis. Additionally, the research onion is an proficient process, in which the researcher could gather the outcome by attaining various other processes (Gray 2013). The research onion even assists in the proficient utilisation of the strategies of the research and research philosophy.
The philosophy of the research assists the researcher to recognise the research essence by exploiting proficient paradigm of the research. There are four kinds of research philosophy that consists of pragmatism, positivism, realism and interpretivism. Creswell (2013) has explained that research philosophy has various traits that are known as axiology, ontology and epistemology.
With respect to this research, the author has looked to make use of the positivism philosophy by connecting the frameworks and theories that has been explained in the section of the literature review in the current thesis. The current thesis concentrates on assessing the factors that has an influence on the customer choices for the online retailers for mobile phones in UAE and hence, positivism is the most authentic philosophy for the purpose of dissecting the answers of the respondents. The researcher has not made use of any other philosophies as they are not reliant on the theories that have been proven scientifically.
The research design that has been constructed for this thesis is a descriptive research design. The research design tries to explain the strategies and the plans that have been selected in order to incorporate the several components of the thesis in a practical and comprehensible manner and thereby making sure that the researcher can effectively highlight the problems that are related with the research and hence, is the framework for the evaluation and collection of the data(Levy and Lemeshow 2013).
The role of the research design has been to make sure that the data that has been gained assists the researcher to answers effectively the problems that are present with this thesis. This thesis therefore looks to address the issues that have an influence on the customer choices on online retailer for mobile phones in UAE. Therefore, the descriptive research design will be exploited in this thesis with the assistance of which all the variables can be explained and evaluated with the assistance of which the information can be examined and thereby the thesis can be completed.
The research approach highlights the method that would be followed by taking help of which the information can be assessed and the projections would be authenticated. There are two sorts of approaches that are available to the researcher are deductive and inductive approach. In accordance to this thesis, it has been viewed that the author tries to exploit the deductive process as this thesis tries to scrutinise the factors that has been previously explained by the other researchers(Beer and Faulkner 2014). The thesis would undertake a comparison of the responses of the participants and the answers discovered from other research journals and hence can complete the thesis proficiently.
There are several sorts of strategies that the researchers can make use of in order to obtain the information. It is reliant on the author to select the strategy that is appropriate for this thesis. This thesis looks to identify the factors that have an influence on the choices of the customer on online retailers for mobile phones in UAE and therefore the suitable data is collected from the respondents who are residing in UAE. It has been viewed that the responses of the participants will be the best information as perspective of the customers is essential for understanding their choices towards online retailers for the purchase of mobile phones.
In this respect, the data with respect to this thesis is gathered with the help of questionnaires that has been framed in accordance to the issues that is pertinent in this thesis. The questions that are available in the questionnaire are close ended and therefore these questions would encourage the respondents to answer in an appropriate manner(Bernard 2017). The questionnaires are forwarded to the selected respondents with the help of direct communication and electronic mail and are provided with a time span within which they are asked to complete the questionnaire and revert back. Interview questions are even framed and responses from the same are even gathered in order to have an idea about the answers.
The thesis would be exploiting simple random sampling and with the help of this method 50 consumers of online retailers are selected randomly in order to mitigate the sampling biasness and errors(Neuman and Robson 2014). This thesis will be making use of SPSS software which is a statistical tool with the help of which the collected data would be assessed and the answers that are necessary would be obtained.
The data validity is very important for the authentication of the overall thesis. If the data gathered is not valid, then the outcome will vary from the expected result and the thesis might become null and void. Therefore, the reliability and validity of the data must be examined prior to the use of the SPSS software. For the purpose of reliability, Cronbach’s Alpha is regarded as a benchmark. If the score of reliability is more than 0.07, then the information will be looked upon as reliable and therefore acceptable(Bonett and Wright 2015). Hence, it can be explained through the measurement of validity and the reliability test, the researcher can discover if the data and the assessments are acceptable and credible. Thereafter, it can be explained that the research is going ahead in the correct path.
The present chapter presents the findings of the analysis carried to measure the factors which influence the customer choices for the online retailers of mobile phones at UAE. The findings are presented as both quantitative and qualitative analysis of the data. The quantitative findings present the investigation into the survey from 50 customers. The qualitative findings present the analysis of the interview of 14 customers.
Initially we present the socio-demographic profile of the customers. The socio-demographic profile of the customers helps to understand the percentage of customers who prefer to shop online.
|
Table 1: Please select the answer that best describes your age |
|||
|
Frequency |
Percent |
||
|
Valid |
Below 20 |
8 |
16.0 |
|
20 – 40 |
38 |
76.0 |
|
|
40 – 60 |
2 |
4.0 |
|
|
More than 60 |
2 |
4.0 |
|
|
Total |
50 |
100.0 |
From the above table we find that 76% of the customers surveyed are in the age group of 20 to 40 years. On the other hand, only 4.0% of the customers are above the age of 40 years. Hence, it can be envisaged that most of the customers who use online shopping are people who have just started their career and earn money. Thus we find that customers across age groups are not e-commerce savvy. Hence, it can be envisaged that online shopping companies should create websites taking into view the requirements of the customers. Also the organizations should consider the concerns of customers who are more than 40 years of age regarding payment modes at online shopping portals. This is in conformity with research done by Chuah et al. (2017) who found that the highest number of customers at online shopping portals are teenagers.
|
Table 2: What is your current level of Education |
|||
|
Frequency |
Percent |
||
|
Valid |
Diploma |
5 |
10.0 |
|
Bachelors |
30 |
60.0 |
|
|
PG |
15 |
30.0 |
|
|
Total |
50 |
100.0 |
The above table shows that 60% of the customers of online shopping have a bachelor’s degree. Moreover, another 30% of the customers have a PG qualification. Thus, we find that 90% of the customers are educated people. Hence, it can be anticipated that the bulk of the customers know the threats to their personal information (credit and debit card) when using online shopping. This is confirmation to the research done by Suki and Suki (2017) according to whom the acceptance of use of technology is an individual trait of the customer. In addition, the intention to take informed risks in the use of online shopping is also an individual trait.
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Table 3: How many mobile phone/s do you currently use |
|||
|
Frequency |
Percent |
||
|
Valid |
1 |
22 |
44.0 |
|
2 |
18 |
36.0 |
|
|
3 |
8 |
16.0 |
|
|
More than 3 |
2 |
4.0 |
|
|
Total |
50 |
100.0 |
From the above table we find that 44% of the customers possess only one mobile phone. Only 4% of the customers possess more than 3 mobile phones. Thus, it can be said that most of the customers like to possess only one mobile phone through which they can carry out all their activities.
|
Table 4: Please select the mobile brand you currently use |
|||
|
Frequency |
Percent |
||
|
Valid |
Nokia |
1 |
2.0 |
|
Sony |
4 |
8.0 |
|
|
Motorola |
7 |
14.0 |
|
|
LG |
4 |
8.0 |
|
|
Samsung |
5 |
10.0 |
|
|
iPhone |
4 |
8.0 |
|
|
HTC |
5 |
10.0 |
|
|
Blackberry |
1 |
2.0 |
|
|
Others |
19 |
38.0 |
|
|
Total |
50 |
100.0 |
The above table shows the type of smartphone used by the customers. Through the above table it can be seen customers possess different brands of phones. Thus it can be interpreted that the possession of the mobile phone by a customer would depend upon the usability, features, affordability by the customer. The ownership of different brands by the customers reflects the research done by Ezzi (2014) according to whom purchasing of a mobile phone not only represents the purchasing attitude of the customer but also the marketing ability of the online shopping organization. The possession of different brands by the customers can also be viewed as to how customers view the evaluation of the mobile phone. According to research done by ShafiqObeidat and Young (2017) customers tend to use the online suggestion when purchasing.Moreover, according to previous work done by researcher’s suggestions by third party sources provide information to customers with specific goals and commercial benefits.
|
Table 5: What is the reason behind choosing your current phone? |
|||
|
Frequency |
Percent |
||
|
Valid |
Better features |
15 |
30.0 |
|
Priced competitively |
11 |
22.0 |
|
|
I have been using this brand for long |
7 |
14.0 |
|
|
Peers/ family members using are satisfied with this brand |
6 |
12.0 |
|
|
Online/print/visual media reviews |
6 |
12.0 |
|
|
Catchy and attractive ads |
1 |
2.0 |
|
|
It was a gift |
3 |
6.0 |
|
|
Others |
1 |
2.0 |
|
|
Total |
50 |
100.0 |
The above table presents the motives behind the purchase of the most recent smartphone from online shopping websites. the analysis shows that customers purchase smart phones due to various factors. Moreover, 30% of the customers purchased the smart phone due to its better features. In addition, another 22% purchased the phone due to its being competitively priced. Hence, it can be reasoned that customers at online shopping sites compare prices between phones before purchasing the phone. This is in conformity with research done by Alshurideh(2016) according to whom the customers find that the prices at online stores is less than at retail stores.
|
Table 6: How often do you change your smartphone? |
|||
|
Frequency |
Percent |
||
|
Valid |
Less than 1 years |
8 |
16.0 |
|
1 – 2 years |
14 |
28.0 |
|
|
2 – 3 years |
19 |
38.0 |
|
|
More than 3 years |
9 |
18.0 |
|
|
Total |
50 |
100.0 |
The above table presents the frequency of change of mobile phone. The analysis shows that 38% of the customers change their mobile within 2 to 3 years. Thus it can be reasoned that the mobile phones purchased by the customer from online stores are highly reliable. This confirms that the online e-commerce sites offer reliable products to their customers. This is also in conformity with research done by Rasheed and Anser(2017) according to whom quality of a product is essential for organizations providing online shopping.
|
Table 7: How important is the phone function when purchasing a smartphone. |
|||
|
Frequency |
Percent |
||
|
Valid |
Extremely important |
24 |
48.0 |
|
Very Important |
16 |
32.0 |
|
|
Somewhat important |
7 |
14.0 |
|
|
Not Important at all Important |
3 |
6.0 |
|
|
Total |
50 |
100.0 |
80% of the customers when purchasing a mobile phone feel that the functioning of smart phone is one of the most important characteristics. On the other hand, only 6.0% believe that features other than functioning of the phone is essential when purchasing a smartphone.
|
Table 8: How important is Usability of phone when purchasing a smartphone. |
|||
|
Frequency |
Percent |
||
|
Valid |
Extremely important |
24 |
48.0 |
|
Very Important |
14 |
28.0 |
|
|
Somewhat important |
8 |
16.0 |
|
|
Slightly important |
3 |
6.0 |
|
|
Not Important at all Important |
1 |
2.0 |
|
|
Total |
50 |
100.0 |
The above table presents the usability feature of the phone as considered by the customers during purchase. The analysis of the above table shows that 76% of the customers compare usability features when purchasing a smartphone. On the other hand, 8% of the customers believe that usability of the smart phone slightly or unimportant.
|
Table 9: How important is the Brand of the phone when purchasing a smartphone |
|||
|
Frequency |
Percent |
||
|
Valid |
Extremely important |
11 |
22.0 |
|
Very Important |
19 |
38.0 |
|
|
Somewhat important |
14 |
28.0 |
|
|
Slightly important |
6 |
12.0 |
|
|
Total |
50 |
100.0 |
The brand of the phone represents the status of the brand of the phone. 60% of the customers believe that the brand of the phone is important characteristic when purchasing a smart phone from online websites. On the other hand, only 12% of the customers feel that brand of a smartphone is only slightly important. In addition, another 28% of the customers consider brand of the phone as somewhat important.
|
Table 10 : How much do you spend in online purchases a month |
|||
|
Frequency |
Percent |
||
|
Valid |
Less than Dh100 |
14 |
28.0 |
|
Dh100 – 200 |
16 |
32.0 |
|
|
Dh200 – 400 |
15 |
30.0 |
|
|
More than Dh400 |
5 |
10.0 |
|
|
Total |
50 |
100.0 |
The above table presents the amount of money spend by customers in online purchases every month. The analysis of the above table shows that almost equal number of customers spend less than AED100, AED 100 to AED 200 and from AED 200 to AED 400. Less than AED 100 is spend by 28% of the customers. From AED 100 to 200 is spend by 32% of the customers. 30% of the customers spend between AED 200 to AED 400. In addition, more than AED 400 is spent by 10% of the customers. Knowledge of the spending behaviour is an essential information for online shopping organizations. This supports the research done by Tandon, Goel and Bishnoi(2017) according to whom the expenditure behaviour of customers is essential information for e-commerce websites.
Hypothesis 1: The spending behaviour of the customers in online shopping does not change with education.
In order to test the hypothesis, the Chi-square test was used.
Null Hypothesis: The level of education of the customers has no relation with the spending behaviour
Alternate Hypothesis: The level of education of the customers has a relation with the spending behaviour.
|
Table 11: Comparison of level of education with spending |
||||||
|
Count |
||||||
|
How much do you spend in online purchases a month |
Total |
|||||
|
Less than Dh100 |
Dh100 – 200 |
Dh200 – 400 |
More than Dh400 |
|||
|
What is your current level of Education |
Diploma |
1 |
3 |
0 |
1 |
5 |
|
Bachelors |
9 |
7 |
13 |
1 |
30 |
|
|
PG |
4 |
6 |
2 |
3 |
15 |
|
|
Total |
14 |
16 |
15 |
5 |
50 |
|
Table 12 : Chi-Square Tests |
|||
|
Value |
df |
Asymptotic Significance (2-sided) |
|
|
Pearson Chi-Square |
10.396a |
6 |
.109 |
|
Likelihood Ratio |
11.871 |
6 |
.065 |
|
Linear-by-Linear Association |
.037 |
1 |
.847 |
|
N of Valid Cases |
50 |
||
|
a. 9 cells (75.0%) have expected count less than 5. The minimum expected count is .50. |
The analysis of the results that at 0.05 level of significance the educational background of the customer has no association with the spending behaviour of the customer, χ(6)2 = 10.396, sig = 0.109. Hence, it can be envisaged that the spending behaviour is independent of the educational background of the customer. Thus, we find that when it comes to spending online then the individual preference of the customers plays a very important role.
Hypothesis 2: The educational background of the customer has an association with the choice of mobile phone by the customer
In order to test the hypothesis, the Chi-square test was used.
Null Hypothesis: The level of education of the customers has no relation with the choice of mobile phone the customers.
Alternate Hypothesis: The level of education of the customers has a relation with the choice of mobile phone by the customers.
|
Table 13: Comparison of level of education with choice of smartphone |
||||||
|
Count |
||||||
|
choice |
Total |
|||||
|
1.00 |
2.00 |
3.00 |
4.00 |
|||
|
What is your current level of Education |
Diploma |
0 |
1 |
3 |
1 |
5 |
|
Bachelors |
12 |
11 |
4 |
3 |
30 |
|
|
PG |
8 |
4 |
2 |
1 |
15 |
|
|
Total |
20 |
16 |
9 |
5 |
50 |
|
Table 14 : Chi-Square Tests |
|||
|
Value |
df |
Asymptotic Significance (2-sided) |
|
|
Pearson Chi-Square |
9.340a |
6 |
.155 |
|
Likelihood Ratio |
9.397 |
6 |
.152 |
|
Linear-by-Linear Association |
4.304 |
1 |
.038 |
|
N of Valid Cases |
50 |
||
|
a. 8 cells (66.7%) have expected count less than 5. The minimum expected count is .50. |
The analysis of the results shows that at 0.05 level of significance the educational background of the customer has no association with the choice of mobile phone, χ(6)2 = 9.340, sig = 0.155. Hence, it can be envisaged that the education of the customers does not define the choice of mobile phones. Thus, we find that the demographic profile of the customer has no relation with the type of mobile phone he purchases.
This section presents the analysis of the responses to the interview of the customers. 14 customers were interviewed for their views on different factors which have influenced their purchase of mobile phones. The customers were asked 9 questions.
The interview started with the understanding of why the consumers use internet. The transcripts of the interview show that they use internet for various functions like socialising, chatting, interacting with friends and also buying. The interview found that consumers use internet for “talk to clients and promote my business,” and “internet for buying of products online.” The answers of the customers are in agreement with research done by Mramba(2015) who found that internet has been used for purposes like expansion of business as well as getting in touch with people for increasing business.
The response to the preference to online stores elicited different responses. It is found that the customers use websites like “Amazon”, “Flipkart”, “Wadi”, ”Souq” and “luluwebstore.” The analysis found that customers also use different websites for purchase of different items. One of the customer reported that “Sivvi for purchasing clothing items. Customers also reported that they “electronic products has been considered with Wadi.com.” It is also found that customers get “clothes from Jabong, Awok and Souq” and “gadgets from Flipkart and Crazydeals.”
The frequency of purchase represents the number of times the customers visit websites for purchasing of goods. The analysis finds that customers have different frequencies of purchases. It is found that most of the customers purchase “once or twice a month.” The frequency of one each customer “four to five times in a month” as well as “5 to 6 times a month.” Moreover, customers reported that they go in for more purchases “when offers or discounts are being provided.” In addition, during “festive seasons, I shop even more.”
The spending behaviour of the customer shows a high amount of variation. Customers spending varies from AED150 to AED 2500. In addition, the customers reported that the spending “does not usually exceed 500, except festive seasons.” The knowledge of the spending behaviour of the customer is essential for the online retailers since it gives them an idea about the expenditure behaviour of the customer (Tandon, Goel and Bishnoi 2017). The expenditure behaviour of customers enables online retailers to decide on the discount percentage during festive seasons.
The response to the type of product purchased online threw up a host of items which the consumers purchased online. The products purchased online presents the buying behaviour of the customers. The word cloud shows that Clothes, household items is the highest purchased items. Besides clothes, household products and electronic items are also purchased by the consumers. It is found that the consumers “purchased mobile phone, dress and cosmetics and home decors from online.” Some of the consumers also purchased “books from AMAZON.”
The consumers use different devices for purchasing online. The analysis the interview found that most of the customers use Apple iPhone and smartphones. Some of the customers have used laptops also. The interviewees reported that they use “phone while online shopping.” The use of “phone is convenient” since they can shop from any place – home or outside.
Different forms of payment methods are used by the customers. Some of the customers prefer to use “cash of delivery.” This the customers find useful since they are “sceptical when it comes to using my personal details” and “Bank related numbers for online shopping.” Moreover, customers also prefer to use “Paypal” as a very convenient means of payment. “Paypal” is preferred means of payment since with “this method the site can never take my actual information of card.” Customers were also found to use “bank cards” for payment purposes.
The interview on the factors which influences a customer to shop online provided different responses. Each of the customer’s interviewed had their own reason for shopping online. However, the simplest reason for shopping online is “can shop sitting at home” as well as “purchase anytime from anywhere.” Moreover, the customers also find online shopping convenient since they can “tally and compare the prices and qualities of different products before ordering them.” Online shopping medium gives the customers the convenience to compare the prices as well as features of goods. Further, the customers can “analyse price of same product in different websites” and thus equate the prices of the same product in different e-commerce websites. In addition, the customers find online shopping fun since the portals provide “impressive discounts and offers.” The customers find online shopping easy since “reaches right at my doorstep without any hassle.”
Conclusion and Recommendation
In this chapter we present draw the conclusion to the present research. The analysis of the data provides an understanding to the various factors which influences the customer’s choice for online retailers for mobile phones in UAE. Some recommendations have also been provided which can be used by online retailers of mobile phones. In addition, future research which might be carried out is also being provided.
Conclusion
The present research envisages the different factors responsible for an online customer purchasing a mobile phone online. To understand the factors survey data was collected from 50 customers. In addition, 14 interviews were also conducted with customers who prefer to shop online.
The analysis of the collected survey shows that most of the customers who prefer to shop online are in the age range of 20 to 40 years. In addition, we also find that there are very few people abo customers above the age of 60year’s Moreover, most of the customers who were surveyed had a higher qualification. Further it is seen that most of the customers possess 1 or 2 mobile phones. It is also found that some of the customers have 3 or more mobile phones. The customers possess different types of mobile phones. It seems that the customers on the whole do not have preference to any specific mobile phones. However, it is seen most of the customers prefer to use Motorola. Customers also have a preference towards Samsung and HTC brands. The analysis of the survey data shows that the customers possess the mobile of their choice due to its better features. In addition, customers may also possess the mobile phone since they found the phone to competitively priced. Hence we find that the customers compare the prices when they purchase mobile phones from online retailers. The facility to compare prices and features of objects has been found to be very effective for customers who prefer to shop online. In addition, we find that customers have purchased since they are accustomed to a specific brand of mobile phone. Most of the customers have been using their present mobile for 2 to 3 years. Thus we can say that they are satisfied with their present brand of mobile phones.
When purchasing a mobile phone customers compare different features of mobile phones. The assessment of features of a mobile phone has been found to be very important factor when purchasing a phone. The usability feature of the mobile phone has also been found to important function when considering the choice of a mobile phone. Brand of the phone also plays an important role in selection of the phone.
The analysis of the data shows that most of the people spend upto AED 400 per month for online purchases. Some of the customers though spend more than AED 400 per month online purchases.
The analysis of the data shows that there is no relation between the education and expenditures on online purchases. In addition, there is also no relation between education and choice of the mobile phone. The socio-demographic background of the customer has no relation to the type of mobile phone that he/ she possesses. Hence it can be said that possession of mobile phone is a personal choice. Further, we can say that customers who purchase from online retailers get a wide variety of choices. The customers purchase the goods which the find to be useful.
The qualitative interview of the customers found that they use internet for various reasons. Customers not only use internet for chatting or socialising with friends but also to search for information and to keep in touch with friends. Customers use a host of websites for online purchases. In addition, it is also found that customers have different preference of websites for purchasing goods. The qualitative interview showed that “Sivvi” for purchasing clothes. Similarly, the customers prefer “wadi.com” for purchasing electronic goods. It was found that most of the customers purchase one or two times in a month. However, from the interview it is found that frequency of purchases increases during festive seasons. The frequency of purchases due to the presence of discount offered by the online retailers. The spending behaviour of the customers also varies a lot. The spending behaviour of the customer is dependent on the income of the customers. the analysis of the interview showed that the customers purchased clothes, household goods, electronic items and other objects from the online retailers. Thus, we find all objects which are essential are available from e-retailers can be purchased by the customers. Moreover, from the interview it is evident that the customers use a host of equipment’s for online shopping. The use of the equipment is dependent on not only the equipment possessed by the customer but also the place at which the customer is present. In the condition that the customer is travelling, it is found that the customer generally uses smartphone for purchasing of goods. When the customer is at home he would use a laptop. From the interview it was found that he uses smartphones for online shopping since it is convenient to use.
The interview showed that the customers use different payment methods. Most of the customers were found to prefer the Cash-on-delivery facility for the purchase of goods. The customers preferred cash-on-delivery since they were sceptical of disclosing their bank card information. However, the customers also preferred to use credit or debit card as well as net banking. It was also found that customers use “paypal” to hide their banking account information from e-commerce websites.
In addition, it is found that customers use online shopping due to variety of factors. The customers find that through online shopping they can purchase the products sitting at home. Moreover, the customers find that since the product reaches them at their doorstep.
From an analysis of the factors influencing customer choices for the online retailers some of recommendations are:
For further exploration of the factors which influence customer choices for the online retailers some of the future research recommendations are:
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