Research more easily Keywords: Taobao, Online Shopping, E –

              

 

 

Research proposal

 

 

 

                                                                                                                     Igor
Brajovic

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Abstract

 

Considering
the rapid expansion of economy in China and the number of 148 million people
that are using the Internet for shopping in the past 8 years, as well as 513
million users of their digital world in general, retail market in China
contains big potential for business opportunities, especially in the aspect of
shopping online. Internet website Taobao is the biggest shopping platform in
China, and online shopping has become a major thing in this country. In order
E-commerce to develop and improve more, we must understand consumer shopping
behavior and key factors influencing buyer decision to purchase the product.

The
main aim of this research proposal is to investigate the factors influencing
the customer purchasing decision, with focus on environmental factors such
as price and product presentation. Since many sellers online offering the
same or the similar products, we must discover what is the thing that customers
take into consideration before they decide to buy the product from one of the stores.

This
research can provide reference for Taobao online stores to understand the
information factors that customers are concern more, so as to improve the
quality of information offered and attract customer attention more easily

 

Keywords:  Taobao, Online Shopping, E – Commerce, Impact
Factors, Decision Making Process, Product information presentation

 

Introduction

 

Online
shopping is the act of purchasing service or products via Internet. It has
grown over the past years, mainly because it is very convenient and easy to
bargain shop from the comfort of the home or any other place you can be at. One
of the main advantages of shopping online, especially during the holidays is
the time management. You are not obliged to spend your time in never-ending
lines and you don’t have to go from one store to another in order to find the
things that you need. Furthermore, online stores are mainly available 24/7 and
considering the fact that in 2017 everybody has Internet access from much type
of devices, no wonder why E-commerce is growing tremendously.  Few years ago the main force of e-commerce in the
world was still the United States of America, however according to the “Global
B2C E-commerce report” from 2016, China increased its lead on the United
States of America as the country with the highest B2C e-commerce turnover last
year. With $766.5bn, it ranked above the US ($595.1bn) and the UK ($174.5bn).
Together, these three countries account for 68% of the total global B2C
e-commerce turnover. (Ecommerce Foundation, 2016). These statistics clearly
indicates that Chinese e-commerce market is growing massively on year basis.

From
the developmental features of internet, there is a tremendous difference
between online consumer environment and traditional purchasing circumstance as
the result of intangibility and virtuality of online network (Li et al, 4,
2008). This
research will mainly focus to define influence factors on customer buying
behavior in order to help sellers to attract more customers to their shops and
to help them to advance the product presentation.

 

Literature
Review

 

Online
shopping behavior (also called online buying behavior and Internet
shopping/buying behavior) refers to the process of purchasing products or
services via the Internet. In the typical online shopping process, when
potential consumers recognize a need for some merchandise or service, they go
to the Internet and search for need-related information. However, rather than
searching actively, at times potential consumers are attracted by information
about products or services associated with the felt need. They then evaluate
alternatives and choose the one that best fits their criteria for meeting the
felt need. Finally, a transaction is conducted and post-sales services
provided. Online shopping attitude refers to consumers psychological state in
terms of making purchases on the Internet (Li, Zhang, 2002). From a marketing perspective Chinese
consumers are already highly reliant on the internet as a source of information
upon which they base a large portion of their purchase decisions. The fact that
online information was the largest influence on 34% of consumer product
purchases in Shanghai in 2010 demonstrates the impact that online information
is already having on consumer education in the more developed Chinese consumer
markets (DDMA, 2011) Many of research has been made in this topic and they
showed that not only low price and best quality product has been purchased. In
the process of purchasing customers also pay attention on other things such as comments
of the other buyers and product information provided, as well as product
presentation in terms of pictures and videos posted. According to Fagarstorm (2011)
shopping process begins with buyers motivation which comes from internal and
external stimulation (such as recommendation of friends and web design). In the
buying decision process the next stage would be selection.

 

Theoretical framework:

 

According to the previous literature
review, consumer behavior, consumer characteristics, online characteristics and
three main factors have been investigated in order to understand the consumer
online shopping behavior by selecting the consumer segment and purchasing
process (Zhao, 2010).

However, the literature online
provide not too much of information about trust, price and product presentation.
In costumer-2-costumer e-commerce market the competition is on the high level. Therefore,
we need to understand what is the way to attract customers to online shop and
how to grab their attention and stand out in the countless number of other
online shops. As the expansion of population of online shopping users in
China, e-commerce platform provides not only opportunities for merchants who
would like to work on e-commerce but also challenges. Because the competition
between traders (Zhao, 2010).

 

Research questions::

 

1.      What
factors will affect consumer decision-making process on Taobao and in what
extent?

 

2.      What
are the information risks that customer usually encounter when purchases on
Taobao?

 

3.      What
suggestions can be provided to Taobao online stores in terms of presenting the
product in order to attract more customers?

 

 

Method

 

Research Methodology is a way to find out the result of a given
problem on a specific matter or problem that is also referred as research
problem. In Methodology, researcher uses different criteria for
solving/searching the given research problem. Different sources use different
type of methods for solving the problem. If we think about the word
“Methodology”, it is the way of searching or solving the research problem.
(Industrial Research Institute, 2010). According to Industrial research
Institute (2010), in research methodology researcher should always focus to approach
research questions in his own systematic way in order to answer them and using
systematic approach the chance for solving the problem will increase. In this
research proposal qualitative method will be used with open-ended questions
with the purposes of gathering answers and information directly from
respondents. Simply because quantitative method emphasize objective
measurements and the statistical, mathematical, or numerical analysis of data
collected through polls, questionnaires, and surveys, or by manipulating
pre-existing statistical data using computational techniques. (Babbie, Mujis
2010).

 

6.1 Procedure

6.2 Measurement
(wording of the questions and answers, format of the questions and answers,
creation of index/scale/typology)

6.3 Sampling (study population, sampling
design)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References:

Ecommerce Foundation (2016) ‘Global B2C E-commerce
Report 2016’ Available: https://www.ecommercewiki.org/wikis/www.ecommercewiki.org/images/5/56/Global_B2C_Ecommerce_Report_2016.pdf

Li Hongxin, et al. (2008). Research on E-Commerce
Credit System. . Diss.

Babbie, Earl R. The Practice of Social Research.
12th ed. Belmont, CA: Wadsworth Cengage, 2010;

Muijs, Daniel. Doing Quantitative Research in
Education with SPSS. 2nd edition. London: SAGE Publications, 2010.

Li Na and Zhang Ping 2002, ‘Consumer online shopping
attitude and behavior: an assessment of research’, Eight Americas Conference on
Information Systems.

Zhao, Dan (2012) The
Chinese Consumer Shopping Behavior on Taobao

 

 

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