CONSUMER BEHAVIOR OF PERSONAL CARE PREDUCTS …

CONSUMER BEHAVIOR OF PERSONAL CARE PREDUCTS TOWARD ONLINE SHOPPING IN THAILAND

SAPANNARAT CHAICHANA

A THEMATIC PAPER SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF MANAGEMENT

COLLEGE OF MANAGEMENT MAHIDOL UNIVERSITY

2014

COPYRIGHT OF MAHIDOL UNIVERSITY

Thematic paper entitled

CONSUMER BEHAVIOR OF PERSONAL CARE PRODUCTS TOWARD ONLINE SHOPPING IN THAILAND

was submitted to the College of Management, Mahidol University

for the degree of Master of Management on

January 4, 2014

……………………….….…..……… Asst. Prof. Brian Hunt, Ph.D. Advisor ……………………….….…..……… Assoc. Prof. Annop Tanlamai, Ph.D. Dean College of Management Mahidol University

……………….………….…..……… Miss Sapannarat Chaichana Candidate ……………………….….…..……… Assoc. Prof. Sooksan Kantabutra, Ph.D. Committee member ……………………….….…..……… Asst. Prof. Winai Wongsurawat, Ph.D. Committee member

iii

ACKNOWLEDGEMENTS

I would like to express my sincere thanks to my thematic advisor, Asst.

Prof. Brian Hunt, Ph.D. for invaluable help and constant encouragement throughout

the course of this thematic paper. I am most grateful for his teaching and advising.

This thematic paper would not have been completed without all the support that I have

always received from him.

In additional, I am grateful for my friend, Mr. Khan Siringampen who

gave me an idea, assistance and suggestion in this thematic paper.

Last, but not least, many thanks to all of my participants who voluntarily

completed the questionnaire. Without them, there would no data to analyze and this

thematic paper would not have been completed.

Sapannarat Chaichana

iii

CONSUMER BEHAVIOR OF PERSONAL CARE PRODUCTS TOWARD ONLINE SHOPPING IN THAILAND

SAPANNARAT CHAICHANA 5549114 M.M. THEMATIC PAPER ADVISORY COMMITTEE : ASST. PROF.BRIAN HUNT, Ph.D., ASSOC. PROF. SOOKSAN KANTABUTRA, Ph.D., ASSOC. PROF. WINAI WONGSURAWAT, Ph.D.

ABSTRACT

The purpose of this study was to test hypotheses of the four factors that

influencing online shopping intention behaviour toward personal care products. The

factors were perceived benefit, perceived risk, service and perceived behavioural

control. Hypotheses were tested by regression analysis of data collected from 58

internet users who are in middle age.

The result of this study showed only perceived benefit was a significant

factor. Recommendations to internet seller were provided in the conclusion section.

KEY WORDS: Online shopping /Personal Care Products / Consumer Behaviour

25 pages

iv

CONTENTS

Pages

ACKNOWLEDGEMENTS ii

ABSTRACT iii

LIST OF TABLES vi

LIST OF FIGURES vii

CHAPTER I INTRODUCTION 1

1.1 E-commerce/Online Shopping 1

1.2 Household/ Household Products 1

1.3 Consumer Behavior 2

1.4 Problem 4

1.5 Objective of the Study 5

CHAPTER II LITERATURE REVIEW 6

2.1 Perception 6

2.1.1 Perceived Benefit 6

2.1.2 Perceived Risk 8

2.2 Customer Service 10

2.3 The Theory of Planned Behavior 11

2.3.1 Attitude toward Behavior 11

2.3.2 Subjective Norms 12

2.3.1 Perceived Behavioural Control 12

2.4 Gap of Literature 12

2.5 Theoretical Framework 13

2.6 Conclusion 14

CHAPTER III RESEARCH METHODOLOGY 15

3.1 Overview 15

3.2 Data Collection Methodology 15

3.3 Data Sampling and Measurement 16

v

CONTENTS (cont.)

Pages

3.4 Preliminary Finding 16

CHAPTER IV RESEARCH FINDINGS 18

4.1 Respondents’ Age 18

4.2 Respondents’ Income 18

4.3 Online Shopping Experience 19

4.4 Hypotheses Test 19

CHAPTER V DISCUSSION 23

5.1 Conclusion 24

5.2 Recommendations 25

REFERENCES 26

APPENDICES 29

APPENDIX A: Questionnaire 30

BIOGRAPHY 32

vi

LIST OF TABLES

Tables Pages

1.1 Percentage of Population Aged 6 Years Old or above who Have

Ever Reserved or Bought Products or Services via Internet (In

Thailand)

4

3.1 Output from Factors Analysis 17

4.1 Online Shopping Experience 19

4.2 Regression Analysis for Perceived Benefit 20

4.3 Regression Analysis for Perceived Risk 20

4.4 Regression Analysis for Service 20

4.5 Regression Analysis for Perceived Behavioral Control 21

vii

LIST OF FIGURES

Figures Pages

1.1 Household Structures in 2009 2

1.2 Percentage of Population Aged 6 Years Old and above who

Have Ever Bought Products via Internet (only household

products illustrated) In Thailand, 2011 - 2012

3

2.1 Reason That Trigger Impulsive Spending 8

2.2 Reasons for Not Purchasing Online 9

2.3 Ranked Factors Based on the Impact the Level of Trust in

Companies That Consumers Buy From

10

2.4 Theory of Planned Behavior 11

2.5 Theoretical Framework 14

4.1 Ages of Respondents 18

4.2 Monthly Incomes of Respondents 19

1

CHAPTER I

INTRODUCTION

1.1 E-commerce/Online Shopping In the past two decades, the internet has occupied an increasingly

important role in social and business life. Business has been transformed electronically

into what is now called electronic (or e-) commerce.

Electronic commerce or E-commerce is an industry where producing,

distributing, marketing, buying and selling of products or services is conducted over

electronic systems such as the Internet and other computer networks (WTO, 1998). E-

commerce started in 1980. At first, commerce transactions happened from business to

business (B2B) while business to consumer (B2C) transaction was not successful at

that time until the World Wide Web started (Miva Merchant, 2011).

Online shopping is the main component of E-commerce. It is the process

of buying goods or services over the internet. Processes of online shopping include

customers selecting items by using shopping cart software, and after, going through a

payment process with delivery in the end. The benefits of online shopping are being

open twenty-four hours and seven days a week, convenience of access, quick time to

find the products online and low cost.

1.2 Household/ Household Products The National Statistics Office Thailand (NSO) provides the definition of

household as “the smallest group of persons living together, taking collective decisions

and making common provision for food and other essentials. The composition of a

household including factors such as its size, age, sex, marital status and education of

its members, are crucial in determining the roles and status of women and men within

it” (National Statistics Office Thailand, 2004).

2

The NSO has separated households into four types of living: extended

family (consisting of several generations living in one household), single family

(consisting of three structures; husband & wife, husband, wife and children, and

husband or wife and children), single, and persons who are not blood related. In 2009,

a survey illustrated that the single family was the highest percentage of family type in

Thailand (Figure 1).

In this paper, the structure of the household representing the single family

consists of husband and wife with/without kids.

Figure 1.1 Household Structures in 2009 Source: Compiled from National Statistics Office, Key Economic and Social

Indicators 2010 and Office of Women Affairs and Family Institution, Policy and

Strategy on Family Development, 2004 - 2013

Household products are products used in the household. Products include

electrical devices, groceries, household cleaners, personal care and so on. (U.S.

Department of Health & Human Services, n.d.)

1.3 Consumer Behavior E-commerce is growing very fast. The behavior of consumers has changed

from retailer to online shopping. Statistical data proves the benefits of online retailing.

3

Sales are continuously increasing through E-commerce. According to emarketer.com,

B2C e-commerce sales grew 18.3% ($1.298 trillion) worldwide in 2012, while in Asia

Pacific, the figure was more than 33% ($332.46 billion). In 2013, sales growth in Asia

Pacific continuously increased over 30% (over $433 billion) from the previous year, to

more than one-third of all the global market (eMarketer, 2013). In Thailand, B2C e-

commerce increased from 47.8% in 2010 to 57.2% in 2011 (SearchBlogAsia, 2011).

Many categories of products and services exist that consumers intend to

buy. A survey from the Nielsen Company looked at how consumers shop online, from

27,000 internet users in 55 countries from Asia Pacific (including Thailand), Europe,

Middle East, North America and South America in 2010. If focusing only on

household products, the top three household products that consumers intended to buy

were books, clothing/accessories/shoes and electronics, respectively (Nielsen, 2010).

Figure 1.2 Percentage of Population Aged 6 Years Old and above who Have Ever Bought Products via Internet (only household products illustrated) In Thailand, 2011 - 2012

Source: Survey of Technology and Communication Using in Household 2011&2012

(NSO, Thailand)

In Thailand, the NSO has conducted a survey to study e-commerce trends

(Figure 2) in 2011 and 2012. The report found that clothes and accessories was the

best-selling category online and there was a good trend of growth in the online market.

4

Moreover, food/beverage/healthy goods and electrical appliances showed opportunity

for growth in the market as well.

According to NSO, the highest percentage (68.8%) of consumers who

shopped online consisted of 25-49 year olds. They spent under 3,000 baht per time

(Table 1). The data shows that regular online consumers are middle-aged and

employed.

Table 1.1 Percentage of Population Aged 6 Years Old or above who Have Ever

Reserved or Bought Products or Services via Internet (In Thailand)

List Percentage

Age

6 - 24 years old 22.22%

25-49 years old 68.80%

above 50 years old 9.00%

Money spent

above 6,000 baht 25.80%

3,000 - 5,999 baht 17.20%

below 3,000 baht 57.00%

Source: Survey of Technology and Communication Using in Household in 2011

(NSO, Thailand)

1.4 Problem Personal care products were defined as hygienic products including

toothpaste, shampoo, deodorant, body and face wash, etc., skin-care such as

moisturizing lotions, lip-balm and facial treatment, and cosmetics including lipstick,

mascara, perfumes and other related products (Horn et al, 2011).

Personal care products are necessary for all families, and so there is

opportunity for SME to use the benefits of e-commerce and increase competitiveness

in the market for selling these products. Nevertheless, the products sold online mostly

consist of impulse purchased products such as fashion goods and electronics

5

equipment. Personal care products are used daily. However, this does not affect online

purchasing, according to the NSO survey.

1.5 Objective of the Study This paper focuses on personal hygienic products. In order to increase the

number of consumers buying through the internet, this paper studies the factors that

influence consumers to buy personal care products online.

Many examined factors affected online shopping behaviors and intentions.

Theory of Planned Behavior factors (e.g. attitude toward online shopping, subjective

norms and perceived behavioral controls) were tested in relation to their influence

toward online shopping intentions. Moreover, in the past, several researchers had

studied perceived benefit, perceived risk and service as factors.

This study attempts to develop prior research and study certain factors that

can be controlled by a manager such as perceived benefit, perceived risk, service and

behavioral control. Important variables affecting online shopping intentions toward

personal care products are to be studied.

The scope of this study includes consumers who are middle aged and able

to use the internet. Based on the statistics of this consumer group, it is likely that they

will make the decision to purchase on their own.

The study uses a questionnaire to collect data because this paper intends to

study numbers of people. In order to meet the target respondents of this study, the

questionnaire is submitted by online website.

In order to meet the aim of the study, the paper begins with a literature

review of the factors that influence consumers’ online shopping intentions. It follows a

data collection methodology and results study are reported. The discussion and

recommendations are addressed at the end of this paper.

6

CHAPTER II

LITERATURE REVIEW

Personal hygienic products are used for keeping the body clean and

helping prevent germs. People regularly use these products, at least three per day, and

people need to buy frequently. In order to reduce the cost of the retail store, the online

market is an opportunity for SME to get into the market, as the number of Thai

internet users are increasing. Based on data from the NSO, it increased from 22.4% to

26.5% from 2011 to 2012.

In order to encourage consumers to purchase hygienic products from

websites, it is important to understand consumer behavior about how and why

consumers intend to buy products from websites. The factors that influence online

purchasing are discussed in the literature review.

2.1 Perception Perception is a process by which an individual selects and translates

information in order to create a meaningful picture (Kotler, 2009). Various researchers

studied perceptions in relation to online purchasing. Perceptions can be positive or

negative, which affect the intention to buy online, so the study of online shopping can

be divided into two aspects; perceived benefits are identified positively and perceived

risks are identified negatively in order to influence behavior for online shopping (Hsu

et al, 2012; Thananuraksakul, 2007; Javadiet al, 2012).

2.1.1 Perceived Benefit

The perceived benefits of online shopping are convenience and time

saving without being restricted by store opening hours and location

(Atchariyachanvanich et al, 2008). Furthermore, online shopping also reduces the

7

sorting time of consumers, helps make better decisions, and takes less time to wait for

the invoice (Jusoh et al, 2012).

Hsu et al (2012) have found that Mongolians are convenienced

significantly due to online shopping. Moreover, the availability and wide selection of

products, ease/comfort of shopping and an easily navigable website and the joy of

shopping online majorly affected online shopping intentions.

Another research in Thailand supports the result. The study showed that

the ease of use had a positive relationship, which would convince consumers to shop

more online (Prompongsatorn et al, 2013).

However, Thananuraksakul’s (2007) result was in contrast. She found that

convenience and time saving were not likely to be related to online buying intentions

at all in Thailand. Based on the results of Thai perception; shopping online was not

convenient and they did not mind shopping from offline stores, even though it was less

convenient than online shopping.

There are a limited number of researchers who have studied in terms of

cheaper price benefit. Based on a survey by MasterCard, the main reasons that

influence people to buy online are low price and discounts. (Master Card World Wide

Insight, 2008) (Figure 2.1).

There are some findings regarding price in Thailand. Thananuraksakul

(2007) found that Thai consumers perceived that price was not the main reason for

shopping online, the researcher having focused on the reasonable price of products.

In summary, perceived benefit provides positive results to encourage

consumers to buy online. Convenience, time saving, ease of use, cheaper prices and

varieties of selection were studied and the findings found that all of these factors

positively affected online shopping intentions.

8

Figure 2.1 Reason That Trigger Impulsive Spending

Source: MasterCard Survey Finding Conducted by IPSOS (Online Shopping in

Asia/Pacific- Patterns, Trends and Future Growth, 2008)

2.1.2 Perceived Risk

Hsu et al (2012) discussed that perceived risk is the consumer’s perception

about the uncertain consequence of buying products, and it affects the consumer’s

trust towards online shopping. Perceived risks are therefore considered as a barrier to

online shopping.

Regarding perceived risk having an effect on trust and being a drawback to

online shopping, various researchers have studied the variables of risk that negatively

influence consumer trust.

Hsu et al (2012) found that Mongolian customers perceived personal

information (privacy and security risks) as risk and this leaded them to mistrust online

shopping. Much research supports this result.

Thananuraksakul (2007) found that trust was relevant to online purchasing

intention and that it was an obstacle to online purchasing. Her findings supported

variables that she discussed in her literature. She mentioned that in perceived risk;

there were not only privacy and security risks, but also financial risks and product

risks. The risk of transaction was considered as a financial risk. Poor quality of

product was regarded as a product risk.

9

Javadi et al. (2012) have also studied risk and its influence toward online

shopping. They found that financial risk, product risk and the risk of no delivery risk

significantly affected consumer trust and intention to buy online.

Zhang et al. (2012) findings in China support the delivery risk. They found

that the speed of delivery encouraged consumer online shopping intentions because

customers were usually happy to search for new things. However, consumers would

put off online shopping if they experienced lost goods, damaged goods or packages

being delivered to the wrong destination.

Jusoh et al (2012) also found financial risk had a significant relationship

with online shopping.

In summary, perceived risk has a negative effect toward online buying.

Perceived risk is considered as privacy and security risks, financial risks, product risks

and delivery. A survey supports the research results that the most important reason

consumers do not purchase online for security concerns (Figure 2.2).

Figure 2.2 Reasons for Not Purchasing Online

Source: MasterCard Survey Finding Conducted by IPSOS (Online Shopping in

Asia/Pacific- Patterns, Trends and Future Growth, 2008)

10

2.2 Customer Service Customer service is a service provided before, during and after purchasing.

Customer service provides an experience and procedures to satisfy customers

(TheTimes100). There is limited research about services being significant factors

toward online shopping intentions. Referring to marketingland.com, they reported that

according to Dimensional Research, customer service is the number one factor

influencing trust towards consumer purchasing from (Figure 2.3).

Figure 2.3 Ranked Factors Based on the Impact the Level of Trust in Companies

That Consumers Buy From

Source: Marketing Land.com

After-sales services include return policies and the processing of customer

complaints. Ming-Shen et al. (2007) suggested that an after-sales service that included

prompt response toward consumers’ complaints would increase the number of regular

online shoppers. On the other hand, Zhang et al. (2012) found after-sales services were

not a significant factor influencing consumer online shopping intentions.

11

2.3 The Theory of Planned Behavior Ajzan (1991) developed the Theory of Planned Behavior (TPB); the theory

has extended from the theory of reasoned action. The theory predicted behavioral

intention and controlled by three factors; these included attitude toward the behavior,

subjective norms, and perceived behavioral control. The intention would influence

behavior.

Figure 2.4 Theory of Planned Behavior

Source: (Ajzan, 1991)

2.3.1 Attitude toward Behavior

Attitude “is a mindset or a tendency to act in a particular way due to both

an individual’s experience and temperament” (Jeffrey Pickens, PhD, 2005). Attitude

toward online shopping has been defined as the consumer’s positive or negative

feelings toward online purchasing (Literature: Jusoh et al, 2012). Several researchers

have found that attitude is the significant factor that influences customer intent to

purchase online. (Jusoh & Ling, 2012; Javadi et al, 2012; Thananuraksakul, 2007;

Prompongsatorn et al. 2013; Hsu et al, 2012; Laohapensang, 2009; Ming-Shen et al,

2007).

12

2.3.2 Subjective Norms

Subjective norms refer to the perceived social pressure to perform or not

to perform behavior (Ajzan, 1991). Thananuraksakul (2007) discussed in her literature

that subjective norms could be separated into three types;

The first was the external social norms such as government, companies,

media and advertising. The second was internal social norms such as relatives, parents,

colleagues and friends, and lastly, personal norms.

Previous findings from Thananuraksakul (2007) found that subjective

norms were likely to influence online shopping behavior as well as the subjective

norm being a factor influencing online purchasing intentions in Thailand. This result

was similar to Laohapensang’s findings (2009). Javadi et al. (2012) found that friends

and peers influenced Iran online shopping behavior.

2.3.3. Perceived Behavioural Control

Perceived behavioral control refers to the perception of ease or difficulty

of performing the behavior of interest (Ajzan, 1991). The task for this paper is to

observe the variable that may make the consumer have an easier experience in online

purchasing.

Thananuraksakul (2007) and Javadi et al. (2012) findings were the same.

Perceived behavioural control was not a factor influencing online shopping intention.

2.4 Gap of Literature Most of the researchers studied online shopping intention without

considering the degree of buyer involvement. The factors that influence intention to

buy online may be different between buyers who are highly involved and those who

are lowly involved. Further study in this paper focuses on low involvement.

Hygienic products (soap, toothpaste, shampoo, deodorant, body and face

wash, etc...) are products that have few differences between brands including the

behavior of consumers in making decisions based on brand familiarity. Therefore,

they are considered as low involvement products.

13

2.5 Theoretical Framework The theory of planned behavior has various uses in order to predict

consumer behavior. There have been researchers that have utilized TPB in order to

study its influence toward online shopping behavior in Asia as well (Ming-Shen et al,

(2007); Thananuraksakul, (2007); Javadi et al. (2012); Hsu et al, (2012). They showed

that the theory has been accepted widely.

Further study on this paper focuses on online shopping intentions toward

personal care products (low involvement products). Based on literature, the variables

studied included perception, services, attitude toward online shopping, subjective

norms and perceived behavioral controls, those of which were influencing online

shopping intentions.

Because there was limited time for this study, perception (perceived

benefit & perceived risk), service and perceived behavioral control were the variables

used. Another benefit was that these variables, as mentioned earlier, allowed the

possibility of a manager being able to control them. The hypotheses were as following,

based on the theoretical framework in Figure 2.5

H1: Perceived benefit positively affects online buying intentions.

H2: Perceived risk negatively affects online buying intentions.

H3: Service significantly affects online buying intentions.

H4: Perceived behavioral control significantly affects online buying intentions.

14

Figure 2.5 Theoretical Framework

2.6 Conclusion The literature illustrated the factors that influence consumers’ online

shopping intentions in Asia. The factors were convenience, time saving, ease of use,

price, risks, services, attitude toward online shopping; subjective norms and perceived

behavioral control. The purpose of study was to understand more about the behavior of

consumers who have the intention to buy via online internet sites.

However, the study rarely focused on product types. It focused on low

involvement products only by using personal hygienic products to represent this type.

The theory of planned behavior had been used extensively in online shopping behavior

research. Four hypotheses were studied based on TPB (Figure 2.4) since they were

related to managerial management.

15

CHAPTER III

RESEARCH METHODOLOGY

3.1 Overview The purpose of this study was to analyze the variables that influence

intentions in relation to personal care online shopping in Thailand, by examining the

effect of perceived benefit, perceived risk, service and perceived behavioral control as

the hypotheses of study.

Based on theoretical framework, perceived benefit, perceived risk, service

and perceived behavioral control were independent variables while online shopping

intention was a dependent variable.

3.2 Data Collection Methodology The study used quantitative methodology by using a questionnaire as a

survey method. Other than the questionnaire dealing with numbers of people, there are

other advantages in using the questionnaire method. First, it is easy to operate. Second,

data collection is reliable since answers are given to each question. Finally, it

simplifies data analysis (Thananuraksakul, 2007).

The questionnaire was separated into two parts; the objective of each part

was as following:

The purpose of Part 1 was to screen respondents and to collect personal

data; the questions included age, income per month and online shopping experience.

The intention of Part 2 was to ask about things that encouraged or acted

against their online shopping. Because of limitations in study time, the questionnaire

had to be short for ease of analysis and to fit within the timeframe of the study.

Therefore, only ten statements assessed the variables of the conceptual model (Figure

7). This part used a six-point Likert scale from 1 “Strongly Disagree” to 6 “Strongly

Agree”. This part was adapted from similar topic researchers.

16

3.3 Data Sampling and Measurement The questionnaire collected primary data. The target group of respondents

were middle aged and used the internet. Data was acquired by online questionnaire

because it was easy to input data for analysis and to match with target respondents.

Regarding time constraints, we could not collect much data. The study

received 60 survey responses. Two were invalid, and so 58 were used.

The paper used SPSS statistics 21.0 package to analyze data. The study

used Factor analysis in order to group variables into factors and remove the variable

that was not important, and used Regression analysis in order to test hypotheses.

3.4 Preliminary Findings

Based on factor analysis that grouped variables into factors, there were no

variables deducted. The result got four factors with eigenvalue ~1.0 and cumulative

Eigen values amounted to 73.2%.

The output of four factors (Table 3.1) was perceived risk, which covered

three aspects: 1) Product risk, studied by Javadi et al. (2012); 2) financial risk, studied

by several researchers; and 3) delivery risk, studied by Zhang et al. (2012).

Perceived benefits covered 1) convenience, studied by various researchers;

and 2) price, studied by (Thananuraksakul, 2007).

Service covered 1) after sales services; studied by Ming-Shen et al. (2007)

& Zhang et al. (2012); and 2) channel provider (Website via computer/ Application via

smart phone).

Lastly, perceived behavior control covered websites to appear easy to use.

In next chapter, these four factors are used for testing hypotheses.

17

Table 3.1 Output from Factors Analysis

Factors Statement Number in

questionnaire

Loading

factors

Perceived Risk

4 (Product risk) 0.855

5 (Delivery risk) 0.791

6 (Financial risk) 0.752

Perceived Benefit

1 (Special offering) 0.637

2 (Convenience) 0.846

3 (Price compare ) 0.822

Service 7 (After sale) 0.877

8 (Channel provider) 0.649

Perceived Behavior Control 9 0.966

18

CHAPTER IV

RESEARCH FINDINGS

4.1 Respondents’ Age

According to Figure 4.1, most respondents were aged from 25 – 30 years

old, 49 respondents, or 84.5%. The remaining nine respondents were 31 – 35 years old

and 36 – 40 years old, calculated to 13.8% and 1.7% respectively.

Figure 4.1 Ages of Respondents

4.2 Respondents’ Income According to Figure 4.2, the largest monthly income was 30,001 - 40,000

baht, for 24 respondents, or 41.1%, the next group was 20,000 – 30,000 baht for 17

respondents, or 29.3%. Two groups of 7 respondents, or 12.1%, had monthly incomes

of 40,001 – 50,000 baht and 50,001 – 60,000 baht, with the remaining three earning

below 20,000 baht per month.

19

Figure 4.2 Monthly Incomes of Respondents

4.3 Online Shopping Experience 53 respondents, or 91.4%, had experienced online shopping; and only

8.6%, or 5 respondents, had never purchased anything online.

Table 4.1 Online Shopping Experience

Have you ever purchase anything online.

Frequency Percent

Valid

Yes 53 91.4

No 5 8.6

Total 58 100.0

4.4 Hypotheses Test The hypotheses test used multiple regression. The significance level of this

study was set at 0.05: Hypotheses were rejected at significance values of more than

0.05.

H1: Perceived benefit positively affects online buying intentions.

As shown in Table 4.2, the regression analyzed the relationship between

perceived benefit and online shopping intention as being significant (sig. <0.05). The

20

adjusted R² indicated that perceived benefit explained 19.3% (.193) of the variance in

online shopping intention. The result of Beta Coefficients and t value found positive

relationship between perceived benefit and online shopping intention. Therefore, H1

was supported.

Table 4.2 Regression Analysis for Perceived Benefit

Model R Square

Adjusted R Square

Unstandardized Coefficients

Standardized Coefficients t Sig.

B Std. Error Beta

Perceived

benefit 0.193 0.178 0.607 0.166 0.439 3.658

0.00

1

a. Dependent Variable: Online shopping intention

H2: Perceived risk negatively affects online buying intentions.

As shown in Table 4.3, the regression analysis of the relationship between

perceived risk and online shopping intention was not significant (sig.> 0.05).

Therefore, H2 was rejected.

Table 4.3 Regression Analysis for Perceived Risk

Model R Square

Adjusted R Square



B Std. Error Beta

Perceived

risk 0.008 -0.01 -0.12 0.184 -0.087 -0.652 0.517


H3: Service significantly affects online buying intentions.


service and online shopping intention was not significant (sig.> 0.05). Therefore, H3

was rejected.

21

Table 4.4 Regression Analysis for Service

Model R Square

Adjusted R Square



B Std. Error Beta

Service 0.003 -0.015 0.076 0.184 0.055 0.412 0.682


H4: Perceived behavioral control significantly affects online buying

intentions.


perceived behavioral control and online shopping intention was not significant (sig.>

0.05). Therefore, H4 was rejected.

Table 4.5 Regression Analysis for Perceived Behavioral Control

Model R Square

Adjusted R Square



B Std. Error Beta

Perceived

behavioral

control

0.056 0.039 0.327 0.179 0.236 1.821 0.074


This paper aimed to study the factors that affect consumer online buying

intentions. Several researchers had studied this as well, and they found that perceived

benefit and perceived risk were important factors (Hsu& Bayarsaikhan,2012; Jusoh &

Ling, 2012), while service and perceived behavioral control were not significant

factors affecting online shopping intentions (Zhang et al., 2012;

Thananuraksakul,2007; Javadi et al., 2012).

22

From this study, only one of four hypotheses was supported (sig < 0.05)

which is perceived benefit. It shows that consumers perceived convenience, special

offers and price comparison as being important factors to influence online purchasing

intentions.

23

CHAPTER V

DISCUSSION

The purpose of this study is to understand the factors influencing online

shopping intentions toward personal care products. The factors that are focused on can

be controlled by a manager. The factors studied are perceived benefit, perceived risk,

service and perceived behavioral control. The result shows that only perceived benefit

is an important determining factor influencing online buying intentions.

The study shows hypothesis 1 was supported. It shows that perceived

benefit positively affects online shopping intentions towards personal care.

Consumers’ perception is that online shopping is convenient, easy to use and they are

happy to get special offerings or prices online. They are motivation factors in order to

purchase personal care products online. Nowadays, people’s life styles have changed

and time is very important for them, so convenience is preferred (Bui, 2013).

This finding was in accordance with the study of Hsu et al (2012), in

Mongolia, and Prompongsatorn et al (2013), in Thailand. However, the result was

opposite to Thananuraksakul (2007), where she found that Thai people perceived

online shopping as not being convenient.

Hypothesis 2 was not supported. It shows that perceived risk does not

negatively affect online shopping intention. This finding was different from several

researchers –Thananuraksakul (2007), Hsu et al (2012), Javadi et al. (2012), Zhang et

al. (2012), and Jusoh et al (2012). They found perceived risk to be significant factors

toward online shopping behavior.

Based on statistics from the Bank of Thailand, consumers who used

internet banking increased dramatically, almost 40%, from 2011 to 2013. It shows that

Thai people have come to trust the transaction system through internet. Since online

shops use internet banking as a medium of transaction, financial transaction would not

be the barrier to online shopping. Because the study identified the product as a low

involvement product, the risk may not have been a concern and most respondents were

24

experienced in online shopping, so this may have resulted in perceived risk being

different from other researchers.

Hypothesis 3 was not supported. Services do not affect online shopping

intention. Because Thai consumers do not often return or change products, after

service is not important for them. This finding was in accordance with Zhang et al.

(2012). For additional channel providers, the finding found that consumers were not

concerned about channels and they did not care if the service were provided by

website or application on a smartphone.

Hypothesis 4 was not supported. It shows that perceived behavioral control

does not affect online shopping intentions. Previous research studied the lack of

facilities in order to shop online as a perceived behavioral control, and as result,

according to Thananuraksakul (2007) and Javadi et al. (2012), perceived behavioral

control was not a factor that affected online purchasing intentions. However, this paper

studied a variable that may have provided the consumer an ease in online purchasing

such as website design, and it was found to not be an important factor as well.

5.1 Conclusions This paper shows how the theory of planned behavior was applicable to

determine consumer behavior intention. Only behavioral control was used to study

consumers’ online shopping intentions toward personal care products, and as a result,

the web page design did not encourage them to shop online.

In addition, the study added perception and service into a theoretical

framework to test factors found in literature. The findings were consistent with the

other literature. Therefore, the theoretical framework used in this paper was

appropriate.

Quantitative methodology and the SPSS statistical software tool were used

for data collection, and data analysis was reliable. However, because of time

constraints, the questionnaire reliability test ignored some of the factors that may have

caused poor reliability and error in findings.

25

5.2 Recommendations The following are recommendations for further study.

• The study should focus on more details of the variables influencing

online shopping behavior in order to benefit the manager.

• Because of time limitations, the questionnaire did not test reliability

before being submitted to respondents. Therefore, to make the findings more reliable,

the questionnaire should be tested.

• Regarding the study of Thai behavior, the sample size of respondents

should be higher and more widely distributed in order to reduce error.

According to this study, perceived benefit significantly affects online

shopping intention toward personal care. To utilize this finding, below are

recommendations for online sellers.

• Online stores should have a variety of products, not only types of

personal care products but also a variety of brands for each type of products in order to

provide more convenience for consumers.

• Price comparison features are important for websites. Regarding

personal care products, there are few differences between brands, so consumer

decisions will depend on the value of the products.

• Special offers are important but it may reduce profit margins if there

are special events all the time. Therefore, the recommendation is to provide special

offers only occasionally in order to encourage consumers to purchase online.

26

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f

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29

APPENDICES

30

APPENDIX A: Questionnaire Studied in Consumer Behavior of Personal Care Products toward online

shopping

This questionnaire is the part of research in order to study attitude and

behavior of consumer toward online shopping on personal care products. This study

belongs to Master degree student of College of Management, Mahidol University. The

information will be used for the academic propose and it will be kept in confidentially.

Your kindly cooperation would be much appreciated. This may take 5 minutes of your

time.

Personal care products for this study used for keeping body clean and

helping to prevent the germ for example toothpaste, shampoo, deodorant, body and

face wash, etc.,

Section I:

1. How old are you?

1. Below 25 years old 2. 25 - 30 years old

3. 31 - 35 years old 4. 36 - 40 years old

5. 41 - 45 years old 6. Above 46 years old

2. Please specific your range of personal income per month?

1. Below 20,000 Baht 2. 20,000 - 30,000 Baht

3. 30,001 - 40,000 Baht 4. 40,001 - 50,000 Baht

5. 50,001 – 60,000 Baht 6. Above 60,001

3. Have you ever purchase anything online?

1. Yes 2. No

31

Section II

Please rate the following statement below from 1 to 6 for each question.

These statements relates to the time when you have a chance to go on the Internet for

shopping for “personal care products”. The word "shopping online" or "online

shopping" is defined as the following: browsing the goods offered by the Internet

merchant and making a conscious purchasing decision.

Please indicate the degree to which you agree or disagree with each of the

following statements. 1 means "Strongly Disagree" and 6 being "Strongly Agree"

No Statement 1 2 3 4 5 6

1 I do purchase personal care online because there are special

offering for me

2 I do shop personal care online because it is easy for me to

buy

3 I do buy personal care online because it is easy to compare

price.

4 I do not purchase personal care online because I do not trust

in internet transaction system.

5 I do not purchase personal care online because products will

be damaged.

6 I do not buy personal care online because I do not want to

wait products.

7 After sale service is important for me when I buy personal

care online.

8

I do not purchase personal care online because I have to

order from computer only (Cannot use from SMART

PHONE via application)

9 I do shop personal care online if website looks nice because

it is easy for me to use.

10 I think I will buy personal care online in the near future

32

BIOGRAPHY

NAME Miss Sapannarat Chaichana

DATE OF BIRTH 31/12/1984

PLACE OF BIRTH Bangkok, Thailand

INSTITUTIONS ATTENDED Bachelor of Electrical Engineering,

Thammasat University, 2007

Master of Management, Mahidol

University, 2014

RESEARCH GRANTS -

HOME ADDRESS 11/1, Village Number 7, Bangkratuk Sub-

District, Sampran District, Nakhon Pathom,

Thailand , 73210

Tel. 080-6095790

E-mail: [email protected]

EMPLOYMENT ADDRESS -

PUBLICATION / PRESENTATION -

Documents

CONSUMER BEHAVIOR OF PERSONAL CARE PREDUCTS …