According to ‘DC, it is important for local companies in Malaysia to have a good understanding of the marketplace for their products and their target customers before engaging themselves in online retailing to ensure that they are able to develop more effective ND meet the requirements and expectations of their online shopping customers (Deadline Chug AFAIK Hard, All. Kuwaiti, and Husbanding bin Small, 2006) Demographic influences online consumer behavior Demographic based on variables like age, gender, income and occupation which can influence consumer behavior dramatically.
Age Graph 1: Statistic for Malaysian Online Shopping- Age Sources: http://humanities. Com. My/blob/online-shopping-statistics-in- Malaysia. HTML Graph 1 above shows the Malaysian online shopping which affected by age. Statistic shows the highest rank is 26 years old to 30 years old because most of hem are single and non-married nations and they have the ability to purchase in online shopping. However, the lowest rank of the age is 21 years old and below because majorities are students and they do not have financial to purchase products and services instead of their financial is control by their parents.
Gender Figure 1: Percentages of gender in online shopping Sources: http://UCLA. Com/business-hemline-shopping-scenes tm_source=afterburner=feed=Feed:+Kclau+ In perception of genders, statistic shows that males (56%) are more active on online purchasing while the females (44%) are catching up. This is because most of males are sensitive in technology gadgets and they are better in purchasing convenience important products. Whereas, females purchase products emotionally and individually, which means most of the time they purchase clothes, shoes, bags, cosmetics etc.
Especially females who are below 21 years old always purchase K-pop stuffs via online shopping. Income Table 1: Income in Malaysia Sources: http://www. acAcademiaedDueownload Figure above shows the average of MaMalaysianannual income. Nations who earned less than RMARMY000 will always enjoy online shopping because they can look for cheaper products. However, the frequency of online shopping will decrease if the income increasing because they have ability to purchase expensive and quality products Occupation Chart 1: Statistic for Malaysian Online Shopping maMalaysiahtHTMLigure above shows the statistic of online shopping.
The statistic shows that top management executive always used to online shopping as they need to up-to-date for the new products, technologies and systems so that they can earn the profit and reduce the cost. However, most of the retired and unemployed nations are laggards and they are not familiar to online shopping. Online buying behavior There are Top 6 Online shopping sites in Malaysia. However, each online shopping site has their own characteristics and specialty. LeLongmyMynd eBay Malaysia are the most popular local auction in Malaysia that you can search for the cheapest price of gadgets, DSDSSSLameras, computers and fashions.
Customers also can look for discount and great offer in this website. ZaAzaleamyMynd LuLovelaceashion are the most well-known boutique websites that every customer loves to browse especially females because they can buy a lot of clothes, bags and shoes without shipping cost and every purchased items will send to house. SuSuperblyalaysia is backed by MaMaybugor shop luxury and quality products online at affordable cost. Whereas BeBustyorld is the online shop for cosmetics, fragrances, skin care, make up and health care.
Table 2: Summary of Top 6 online websites (self-made) Frequency of Shopping Online Table 3: Frequency of Shopping Online Sources: http://ssSSLaiApplobal. coComN/asAsiaxpress/archives/1090 Chart 2: Frequency of Shopping Online Sources: Self-made According to table 3 and chart 2, the highest percentage of frequency of shopping online is about once a month (24%) and the lowest percentage of frequency of hopping online is almost every day (1 This is because MaMalaysianre busy in their work and family
Respondents purchase online Table 4. ; What respondents purchase online ; http://ssSSLaiApplobal. coComN/asAsiaxpress/archives/1090 Sources. Chart 3. Based on the table 4 and chart 3, clothes and fashion accessories are the highest percentage which MaMalaysianill purchase online because there are many types of cheap clothes and they can shop around before purchase. ZaAzaleamyMys the example f clothes and fashion accessories website. Figure 2: ZaAzaleamyMyources: http://www. zaAzaleacoComy/YHowever, the lowest percentage of purchase online is white (major) appliances such as refrigerator because consumers prefer to see the quality of the appliances more than the price. If the quality of appliances is higher and the usage is long, consumers will afford to purchase if the price is not so expensive. Reasons of purchasing online Based on the pilot test, 73% of MaMalaysianre prefer to purchase clothes and fashion accessories because it is hard to find suitable clothes in a day and it is wasting of immimef they purchase via offline shopping.
They can do some research like price, shipping cost, services and varieties of products from different website. Besides, 40% of MaMalaysianoves to purchase books from online because there are some books are not selling in Malaysia such as “DuDeducefrom China. These books are recommended by every Chinese teacher but due to the low demand, these are not supply in Malaysia. So, MaMalaysianho are interested in these books only can purchase via online. Moreover, they will save their money as they will only direct and focus on what they should purchase.
Unlike offline shopping, MaMalaysianill buy additional items instead of purchase their needs and wants such as physical stores that use the product placement and sales to attract them to purchase items. In addition, there are 25% of the nations will purchase toys from online like minions, piupchucknd etc. Furthermore, 24% of MaMalaysianrefer to purchase medical supplies and cosmetics through online because some of the medical supplies and cosmetics difficult to purchase in Malaysia as they have not be approved by Malaysia’s government. Environmental factor drives/discourages of online shopping
Environmental factor include political (also includes legal) and social which will influence the online shopping. In Malaysia, there are some cyber laws to protect nations for example Digital Signature Act 1997, Computer Crime Act 1997, The Copyright Act 1997, The Communication and Multimedia Act 1998 and The Electronic Government Activities Act 2007 (NiKnitmoMostgoGobmyMy2010). Those are positive influence to nations who are decided to have online purchasing. However, social cases have affected consumer bebehaviorhat there are negative incidents were happened for online purchasing.
For example, nations fear of online purchasing because it is not security via online transaction, which means there will be spsparen your computer like personal data and account number will be detected and stolen. Negative impact from the environmental factor will be hard to boost up Malaysia’s economic. Moreover, It is hard to identify the quality of the product like most of teenagers nowadays prefer to buy K-Pops’ albums, posters and so on through online and they feel angry and disappointed that the products that they purchased are not in good quality.
Psychological factor drives/discourages of online shopping MaMoscowierarchy can be used to represent the psychological factors which developed by Abraham MaMoscown year 1943. MaMoscowierarchy shows the drives and discourages of online shopping. Figure 3: MaMoscowierarchy Sources: http://www. psPsychologicallycoComlblobide-and-seek/201205/our-hierarchy- needs MaMascotsierarchy is used because MaMalaysianeed to have a comfortable and easy lifestyle. After they know the needs and wants via online purchasing, they will ask for safety which is security in morality, family, health and resources.
However, if they got the negative feedback from friends and family, they will not onuntiedo purchase products and services via online. Meaning, nations must go through first step which is physiological before they enter to other layers. China Demographic Age Figure 1: percentage of age purchase online Source: http://www. fzFizzlingcoComnfo/view/2011 _6/1 51020438. htHTMLrom the graph we can see that 18-30 years old people is the most percentage to choose online shopping, the age below 18 percentage is almost similar with age between 31 and 35. Ages at 36 above are less to choose online shopping.
We also can see that age between 18 and 24 the percentage growth very fast. Basic this, we can now that in China, young people are more prefer online shopping than old people. Figure 2: percentage of income purchase online Source: http://www. emNearsightedlycoComouurinalshtHTMLarArticled723343&sh0′. FhFifthhe online purchase group in China is more in low-income family. It is get 62. 9%. (Lower than CNCCNY000 per month); the middle incomes get 35. 5%. (Higher than CNCCNY000 but lower than CNCCNY0000 per month); and the high income family percentage lust 1. 6%).
Gender Figure 3: Gender percentage of China online purchase. Source: http://www. liLionfishcoComcnCNNeb/oversea_show. asAspsArArticled34279 From this graph, we can see that online purchase in China, male is more than female. It is have different with our traditional concept. The male to female ratio was 5. 4: 4. 6, slightly more male consumers. Occupation Figure 4: Occupation percentage of online shopping Source: http://www. liLionfishcoComcnCNNeb/oversea_show. asAspsArArticled34279 For occupation, student this group is get percentage 20. 4%. Technical, worker and basic social worker almost get 39. %. However, the high level managers Just get 2. 2%. From there we can see that the distribution of Job, age, income is the same. Education Figure 5: Education of online shopping From this graph, we can see that the education has negative relationship with the percentage of online shopping. The more education level higher, they will lesser online shopping. Online buying behavior There are a lot of online shoppers in China. But mainly market is share by around 9 brand of online shopping company. The first place for China online market is TmTamaleIt can get around 50. 8% market shares.
And the second place is JiJinglingIt can get around 17. 1% market shares. The third place is TeTangentIt can get around 5. 6% market shares. The details are as below: Figure 6: market shares of China online sales Source: http://www. chCinematographiccoCom836/china-online-shopping-market- snapshot-for-q2sq013/ Frequency of item purchase online Figure 6: Frequency of purchase online in China Source: http://www. reArchdiocesancoComtHTMLeport/2010/5970. htHTMLn China, most people online shopping are about twice to four times per month. And only 3. 8% people no shopping online experience.
As this research, we can find that online shopping is very general in China Attitude Nowadays, online shopping becomes more and more popular in China. In these 10 years, more Chinese choose purchase online. Especially the young generation, they refer purchase online than shopping at store. During the survey, there are 47. 4% people prefer online shopping, 40% have no attitude and 12. 6% people dislike online shopping. (ReRestheHerscoCom2013) Some of people who have online shopping experience worried about the quality of the product and the post purchase service.
During the survey, around 55% people worried about the quality, and 27. 1% people worried about the post purchase service. (ReRestheHerscoCom2013) So the most online shopping people’s attitude is choosing the famous online shopping website and good evaluate shopping store. Reasons of making purchases Price Online product is always cheaper than the one in shopping mall. It is because online shopping can save the capital for rent store, transportation, and so on. And there is no agent to deduct a percentage from a sum of money. So the price is always cheap for customers.
Compare For online shopping website, there are thousands of stores for the customer, and every store has different products for customer to choose. So the consumer can easily to compare the same product from different brand or store. It is better for consumer to make evaluation. Time Online shopping can save time for the people who do not have enough time for hopping. Shopping online Just clicks the mouse, and then you can purchase what you want. It is fast and easy for you. Environmental and psychological affect online shopping Environmental In China, the environmental pollution is a big problem.
The automobile exhaust is the one reason leads that. So the companies provide the website for people shopping online. It can decline the pollution and make a healthful life style. For the customer, they also prefer online shopping. The environmental pollution is bad for the health. People inhale hazardous substance can lead many types of disease. The bad weather lsalsoan lead less shopping for sell in store. But online shopping will not have this kind problem. Whatever raining, snowing, or clouding outside, it will no effect of online shopping. For the company, it will keep the sale stabilized.
For the online shopper, they can purchase their favorites product any time. So the environment can affect online shopping. Psychological Online shopping no needing use the real money, they usually use the credit card to pay. The customers do not have the behavior pay the real money, it will lead they have less conscious of money, thus no control for purchase. For the online shopping ommanyit is an advantage thing. But for customers, they usual regret after purchase. In another hand, online shopping have model to show the product to the consumers.
The visual stimulation also is a point that leads more purchase behavior. People believe that the same effect of product will come to their own. Actually, different people suit for different things. Model has standard stature, and beautiful face. But not all the consumer has that. So we can see that the psychological also a point to affect online shopping. Japan Demographic influences online consumer behavior of Japanese in terms of age, ncincomegender and occupation (KoKettlend Keller, 2012). Age In terms of age, Japanese are mostly made up of generation of middle-age group of people.
From the statistic shown below, Japan might not encounter the same issue of aging like Singapore as the number of young-born generation is increasing and there is a pro for Japan to accelerate their economic transformation. Figure: Average age of Japanese Source: Ministry of Internal Affairs and Communication Gender in Japan Figure: Average Gender in Japan From the graph above, it is vivid that the women dominated the Japan population, and then followed by men. There is about 25. 5 million of married couple which forms their family. Only a small part of people are in widow state.
Disposable Income Figure: Disposable income of Japanese families It is analyzed that a family with a working head-of-household had a gross income of Yen 562,094. It is notable that the steep increase in disposable income in December. This is due to the year-end bonuses that Japanese workers received. Occupation and Lifestyle There are six type of popular occupation in Japan which is teacher, fisherman, models, physical therapist, engineer and chef. Japanese people enjoy a high standard f living, and nearly 90% of the population consider themselves part of the middle class.
However, many studies on happiness and satisfaction with life tend to find that Japanese people average relatively low levels of life satisfaction and happiness. Japan Consumer Online Shopping Behavior Figure 1. 0: Frequency of online shopping in Japan Source: http://ssSSLaiApplobal. coComN/asAsiaxpress/archives/1090 From the analysis of the chart above, it can be identified that the online shopping behavior of Japanese is very active. 36% of the respondents will shop online for almost every week. The highest number of Japanese, about 18% will shop online for about once every two weeks.
In general, Japanese online shopping is categorized as purchased online regularly as more of the people will be online shopping within a month. Figure 2. 0: Frequency of items purchased online in Japan From the above chart, it can be analyzed that most of the Japanese like to purchase the clothes and fashion accessories by online shopping. This is due to the modern thinking and Y-generation style. The second preferred items that Japanese purchase online are food and drinks. This includes the fast food restaurants as the people owdoodadsre very busy of their hectic life and work. After that, it is followed by books category.
This includes the magazines, newspapers, e-books and so on. This is quite common among Japanese because they like reading pretty much. Meanwhile, stationeries and major appliances shared the same dividend of 5% respectively. Toys score the least for 4% because the parents are more likely to bring their children to buy the toys in shopping complex rather than online shopping. Reasons for Japanese to make such Purchases Generally, Japanese perceive online shopping to be convenience (71 %) and easy 29%), with 62% of the respondents claiming that online shopping is easier than shopping via offline catalogue and telephone (Freeze, 2000).
In the pilot test survey, a questionnaire is distributed and the respondents are allowed to make more than one reasons of purchasing online. For Japanese, according to website of online shopping behavior in Asia(2013), 78% of the respondents indicated that secure payment facility and convenient payment methods are the driving force. This is because they are confident towards the money transfer between bank and mobile phone which needs deidentificationhen they purchase online.
From the website of online shopping behavior in Asia(2013) too, 86% of the respondents viewed that price and value is the most important factors because many times for conventional shopping they tend to spend a lot more than the required expenses like eating out and trtravelingFrom the analysis too, it can be identified that Japanese are really not concerned about the reputation of the website and customer service of the website. For 82% of them provide opinions that low delivery charges will be their major concern since some of he websites provide free shipping of they purchase till certain amount of money (Freeze, 2000).
Furthermore, Japanese are quite neutral towards the speedy transaction of the website. Plus, 70% of them are more focus towards promotional offers because they can find great deals everywhere, that made up for shipping and handling fees (Freeze, 2000). Environmental Factors Drives/Discourage Online Shopping Japan has always been perceived as one of the world’s healthiest societies. Japanese consumers are increasingly conscious of their health. Despite the issue of pollution ndNDegree of polluted of environmental factor, Hawkins and MoMotherboards010) mentioned that Japanese more likely to purchase online.
Besides that, they would not have the problem of finding a parking place. This means that environmental consciousness has been emerging and results in active online shopping in Japan. A survey conducted last year by the global advertising agency J. Walter Thompson found that 51 percent of Japanese consumers are more focused on the environment(ScCoffmannd KaSankt al, 2010). The survey found that the Japanese will buy environmental friendly products in the next five years extensively.