Internet Based Electronic Commerce

Introduction

Internet based electronic commerce included electronic commerce and mobile commerce are enable consumers to find the desire products, goods or services through online store (Chung and Young, 2003).  Online shopping like shopping in the paper catalog which it cannot touch or smell the items and using mail delivery for every purchasing (Spiller and Lohse, 1997). It also drives with the usage of information and communication technology (ICT) in Malaysia by individual internet users increase from 71.1 percent in 2015 to 80.1 percent in 2017 and house wireless network access increase from 70.1 percent in 2015 to 85.7 percent in 2017 (Department of Statistics, 2018).

Mobile commerce new development and natural extension from electronic commerce and it is a positive development for business in twenty-first century (Sandhu. P., 2012). M-commerce allow user and business in a wireless mode, access it in anytime as long as connected with internet (Coursaris et al., 2003). The high penetration rate of mobile phones to create the rapid growth market of m-commerce (AHMS Sadi and MF Noorudin, 2009). It allows consumers to compare the prices and select their retailers as the price difference might huge different among the retailers (Kim and David, 2012).

Although e-commerce is expected to be the key driver of the digital economy, slow internet speed is dampened by Malaysia as average of 7.3 Mbps far below with global average of 23 Mbps (World Economic Forum, 2015). Furthermore, the characteristics of information presentation, navigation, order fulfillment are the important key main factor in building e-commerce relationship by trust with consumer (Alba et al., 1997). The research considers consumers’ information processing style, pattern of shopping, physical store preferences, and relevant areas for insights into creating better attractive, user friendly and successful online stores. There are few studies provide empirical validation of the relationship between the factors of affecting customers’ response and purchase behavior in online shopping.

Objectives

The aim of this study was to empirically investigate and determing the factors affecting consumer purchase behavior in online shopping. We adapt the theory of technology acceptance model (TBM) and buyer behavior to interpret response of consumer toward online shopping services. We investigate the reputation of store to gain trust to affect consumers’ willingness to involve online shopping. Lastly, we determine and discuss numbers of components or elements include price, promotion and affecting consumer purchase behavior with their perception. Thus, we examine the relationship of them and construct a conceptual framework for better understanding.

Theoretical background and development

Various theories to explain online shopping behavior included information systems (Technology Acceptance Model), marketing (Consumer Behavior) and psychology (Flow and Environmental Psychology) in one model (Koufaris. M., 2002). Pavlou (2003) studied relationship of consumer acceptance of e-commerce as well as Pavlou and Fygenson (2006) investigate with extended theory of planned behavior (TPB) (Pavloi PA. and Fyfenson M., 2006). In their research model, consumer behavior was separately examined to get information behavior and purchasing behavior of the user, there are many facts include with trust and perceived risk, consumer’s attitude, social influence, personal online skills, and technology-oriented factors like perceived usefulness, perceived ease of use and web site functions (Javadi et al., 2012). Reasons for shopping online also included less time consumption, avoidance of crowds, together with non-stop shopping availability (Karayanni, 2003).