Perceived risk barriers to online shopping : experiences of technologically enabled generation y consumers

Swiegers, Liezel (2018-03)

Thesis (MCom)--Stellenbosch University, 2018.

Thesis

ENGLISH SUMMARY : Online shopping is progressively becoming popular worldwide however, in South Africa it continues to experience slower growth rates. This is contrary to the expected uptake of online shopping by a generation who grew up with Internet and have access to Internet technologies on a daily basis. The current study aims to contribute to the understanding of firstly, online consumer behaviour, secondly, the slow growth of online shopping in South Africa and thirdly, the risk perception of a significant market segment in South Africa. The focus of the study was therefore, to investigate the online purchasing behaviour of technologically enabled South African Generation Y consumers, with the primary objective of identifying perceived risk barriers towards online shopping. As a secondary objective, the study also investigated the technology usage profile of Generation Y respondents to identify how, when and why younger consumers in South Africa access the Internet, as well as their online shopping behaviour. Because previous research highlighted the importance of product type when shopping online, perceived risk was measured for the context of high involvement products (clothing), as well as low involvement products (books). Consideration was also given to experienced and inexperienced online consumers and therefore, online purchase and repurchase intent. The study draws from theories such as the Technology Acceptance Model and Theory of Perceived Risk and used Structural equation modelling (SEM) to test relationships between the dimensions of perceived risk and online purchase and repurchase intent. It was found that perceived psychological and perceived social risk have a significant effect on the repurchase intent of experienced online consumers, for the clothing and books. In addition, perceived financial and perceived social risk were found to significantly affect online purchase intent of inexperienced online consumers, for the context of clothing and books. From the findings, managerial implications were formulated and suggestions were made for online retailers and marketers to enhance their business strategies. As a result of limitations that exist in the current study, suggestions for future research are also proposed.

AFRIKAANSE OPSOMMING : Die populariteit van aanlyn-inkopies neem wêreldwyd progressief toe, maar in Suid-Afrika is die groeikoers aansienlik stadiger. Dit is teenstrydig met die verwagte toename in aanlyn-inkopies deur Generasie Y verbruikers wat van kleins af Internetgebruikers is, en daagliks maklike toegang tot die Internet geniet. Die huidige studie beoog om ‘n bydrae te maak tot ons verstaan van die volgende aspekte van aanlyn-inkopies; aanlyn-verbruikers se gedrag, die stadige groeikoers van aanlyn-inkopies in Suid-Afrika, asook die risikopersepsie van ‘n merkwaardige markdeel in Suid-Afrika. Die fokus van die studie is dus om ondersoek in te stel na die aanlyn-aankoopgedrag van tegnologies-aangeskrewe Suid-Afrikaanse Generasie Y-verbruikers, met die primêre doel om waargenome risiko-versperrings tot aanlyn-inkopies te identifiseer. As ‘n sekondêre doelwit het die studie ook ondersoek ingestel na die tegnologie-verbruikprofiel van Generasie Y verbruikers om te identifiseer hoe, wanneer en hoekom jonger verbruikers in Suid-Afrika die Internet gebruik, asook hulle gedrag met betrekking tot aanlyn-inkopies. Vorige navorsing het die belangrikheid van produk-tipe met betrekking tot aanlyn-aankoopgedrag uitgelig, en daarom tref hierdie studie ‘n onderskeid tussen waargenome risiko-versperrings vir die konteks van hoë betrokkenheidsprodukte, soos klere, en waargenome risiko-versperrings in die konteks van lae betrokkendheidsprodukte, soos boeke. Daar word ook ag geslaan op die onderskeid tussen ervare en onervare aanlyn-verbruikers. Die tegniek van ‘structural equation modelling (SEM)’ is gebruik om die verhouding te toets tussen die dimensies van waargenome risiko en die bedoeling om aan te koop, sowel as die bedoeling om aankope te herhaal. Die resultate dui daarop dat waargenome sielkundige risiko, sowel as waargenome sosiale risiko ‘n merkwaardige impak het op ervare aanlyn-verbruikers se bedoeling om aankope te herhaal, vir beide klere en boeke. Boonop dui die resultate daarop dat waargenome finansiële risiko en waargenome sosiale risiko ook ‘n merkwaardige impak het op onervare verbruikers se bedoeling om aan te koop, vir beide klere en boeke. Uit die studie se bevindinge word bestuursimplikasies geformuleer en voorstelle gemaak vir handelaars en bemarkers om hul aanlyn strategieë te verbeter. Weens die beperkings van die huidige studie, word voorstelle ook gemaak vir toekomstige navorsing.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/103625
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