IMPACT OF E-PAYMENT ON ONLINE SHOPPING BEHAVIOUR
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IMPACT OF E-PAYMENT ON ONLINE SHOPPING BEHAVIOUR
ABSTRACT
The study looked at how e-payments affected online shopping behaviour in Nigeria. The sample population consisted of undergraduate students from the Distance Learning Institute for Business Administration at the University of Lagos. The study followed a survey research design, with a questionnaire serving as the primary data collection tool.
A total of 100 questionnaires were distributed to 500 Distance Learning Institute undergraduate Business Administration students, 82 of which were completed and returned. The Chi Square test method of data analysis was used to investigate the effect of e-payment on online buying behaviour.
The data demonstrated that price, trust, and convenience all have a substantial influence on customers’ attitudes towards online buying. Furthermore, the analysis revealed that online shoppers are typically hesitant to make online payments, either due to a lack of internet connection or a fear of being compromised.
Based on the empirical findings, the study recommends that e-commerce platforms be easy to access and navigate in order to avoid customer doubt, that e-commerce companies ensure their platforms have the best security features, and that regular discounts and updates to products and services be provided to attract customers.
Chapter one
INTRODUCTION
1.1 Background for the Study
The 21st century has seen a significant shift from traditional business models (Brick) to electronic business (Click).This paradigm shift is related with an increase in knowledge of information technology and its benefits.
Credit cards have long been associated with electronic payment methods, such as credit cards in shopping malls, since the advent of e-commerce.
Many hotels and other businesses and commodities accept card swipes, POS terminals, ATM cash payments, and internet electronic payments. Online payments, often known as electronic currency, are transactions that involve the online exchange of funds.
It is a network-based system for conducting electronic financial and business card transactions with various electronic instruments and media. Electronic computing and communication technology serve as a means.
Electronic data (binary data) is kept in the bank’s computer system and transmitted via the computer network system in the form of electronic information transfers and payments.
The Electronic Payment System serves as the foundation for online payments, and the development of an online payment system is a step up from electronic payments. It facilitates electronic payments at any time, directly to consumers over the Internet, settlement, and the formation of an e-business environment.
E-commerce is still in its early stages in most third-world nations, therefore the online purchasing trend in Nigeria is not as sophisticated as it is in affluent countries (Olusoji James George, Olufemi A., Lasisi Jubril O., and Lucas O., 2015).
Although people use internet banking (ebanking), the majority of people are still hesitant to shop online and prefer to conduct their transactions in person. Folorunso (2006), Adeyeye (2008), Ajayi (2008),
Ayo (2008), Egwali (2009), and Ayo (2010) listed a number of obstacles impeding the adoption of e-commerce and online purchasing in Nigeria. One such factor is Internet access.
The simplicity of Internet connection has been cited as one of the factors driving the acceptance and expansion of e-commerce and online purchasing in the United Kingdom (Soopramanien and Robertson, 2007).
In contrast, the bulk of Nigeria’s population does not have access to the Internet.
In 2006, the number had risen to 5,000,000 (again, about 3.1% of the national population). This figure doubled in 2008, with 10 million people having access to the internet.
In 2009, the amount more than doubled, as 23,982,000 million Nigerians utilised the Internet. By June 2010, the number of internet users in Nigeria had risen to 43,982,200, accounting for 29.5% of the total population.
The increasing number of internet users in Nigeria, from 0.1% in 2000 to 29.5% of the population in June 2010, demonstrated that internet use in the country is expanding at a sporadic rate and has the capacity to develop even more (Ayo et al, 2011).
Nonetheless, a recent survey on internet usage in Nigeria found that 46.1% (86,219,965) of the total population (186,987,563 people) use the internet, while 53.9% (100,767,598 people) do not.
These numbers show that only a small proportion of the general population uses the Internet, and those who do do so through several cybercafés distributed throughout the country (Ayo, 2006).
According to Adomi et al. (2003:489), cybercafés “are places where Internet public access services are provided by entrepreneurs for a fee on the amount of data used” and are highly popular with Nigerians due to the high cost of individual connectivity.
However, because these cybercafés are public, people are hesitant to conduct e-commerce activities there due to concerns about privacy, security, and network stability, which has a detrimental impact on the country’s online shopping trends (Ayo 2006).
As technology, knowledge, and the capacity to engage over the Internet become more accessible and grow, an increasing number of individuals are gravitating towards more intensive Internet use (Changchit, 2006). The obvious capabilities of the Internet include pathways for acquiring information, purchasing a product, or providing a service.
These developments in Internet technology enable the extension of purchasing possibilities beyond traditional techniques, which may be more time-consuming. Offline shopping solutions eliminate the need to physically obtain information, allowing clients to better manage their time.
For example, instead of physically visiting multiple establishments to compare prices or relying on circular pamphlets in newspapers, a consumer can seek and get needed information via the Internet; this trend has significantly increased the tendency for consumers to shop online.
As Internet usage grows, so does online purchasing, particularly in countries with well-developed marketing infrastructure (Kau, Tang, and Ghose, 2003). Consumers can shop at any time and have access to products that are not available in their geographic area.
Furthermore, they can now access the Internet not just through their personal computers, but also through innovative electronic gadgets like Palm Pilots and mobile phones (Kau, Tang, and Ghose, 2003).
Furthermore, due to an increase in high-speed Internet access connections, decreased connection costs, and increased consumer competency, e-commerce activity will continue to grow as the availability and ease with which the Internet offers consumers with the ability to undertake necessary activities improves.
In combination with the advancement of Internet capabilities, it is projected that approximately 53% of Internet users in the United States have completed an online purchase. However, not all consumers use the Internet to shop.
While more than half of Internet users in the United States have made a purchase at some point, this does not account for the mismatch between the number of website visits recorded and the number of real online sales.
According to one statistic, even if a website has millions of visitors, only about 3% of those visits result in an online purchase (Betts, 2001), and another study found that over 65% of online shopping carts are abandoned before a purchase is completed (O’Neill, 2001).
According to Forsythe and Shi (2003), the majority of consumers go online to window-shop before making their purchases in a more traditional, offline context. As a result, the purpose of this study is to look into the impact of e-payment on customer shopping behaviour.
1.2 Statement of Problem
At any given time, there are millions of people online, each of whom is a prospective customer for a firm that offers online sales. Because of the continuous growth of Internet-related technology, a company interested in selling products through its website will continually be looking for an advantage in the competitive market.
Given the large number of prospective consumers, it is critical to understand what they want and need. The need of analysing and identifying elements that influence the consumer when he or she decides to make a purchase on the internet is critical, especially since the internet is a new medium with new consumer demands.
That is why it is critical for online stores/retailers to understand what drives online shoppers. Because online retailing is a new retailing medium, and online consumers behave differently than traditional consumers, it is necessary to discover what influences the online consumer.
Analysing the process that an online customer goes through while considering and making a purchase on the internet reveals some of the aspects that consumers evaluate. They address issues such as trust, convenience, cost, and e-payment security.
These characteristics must be discovered and considered by online retailers in order to meet consumer wants and compete in the online marketplace.
To further understand how these elements influence different types of consumers, it is necessary to examine the impact that e-payment has had on buying behaviour throughout time.
1.3 Aim and Objective of the Study
The purpose of this research is to investigate the impact of e-payment on customers’ online shopping habits. While the precise aims include:
1) Examine the importance of making online payments.
2) Investigate online shoppers’ conduct in terms of pricing, trust, convenience, and security.
3) Determine how e-payments have changed internet buying.
1.4. Research Questions.
The main question in this study is how e-payment affects online shopping. This study will also attempt to answer the following sub-questions:
1) What is the importance of online payments?
2) How do pricing, trust, convenience, and security affect internet shopping?
3) How does e-payment affect online shopping behaviour?
1.5. Research hypotheses.
H0: Consumer views about internet buying are not significantly influenced by price, trust, or convenience.
H1: Consumer attitudes towards internet purchasing are significantly influenced by price, trust, and convenience.
H0: Online shoppers dislike making online payments.
H1: Online shoppers prefer making payments online.
1.6 Significance of the Study
This research will be significant in the following areas:
v It will help people comprehend what e-commerce (online stores) is and what factors influence consumer behaviour when shopping online.
v It will also provide a better understanding of techniques for enticing customers to online retailers and increasing customer loyalty and consistent patronage.
v It will also strengthen the relationship between online stores and consumers of items and services available on them.
1.7. Scope of the study
Starting to investigate all of Nigeria’s online retailers or all of the consumers that purchase online would be a monumental undertaking, thus the researcher would focus solely on Jumia shoppers in terms of e-payments.
1.8 Definition of Terms.
E-commerce (electronic commerce or EC) is the purchase and sale of goods and services, as well as the transmission of payments or data, via an electronic network, most notably the Internet.
Consumers are individuals who purchase things or services for personal use rather than for manufacturing or resale. A customer is someone who can decide whether or not to buy an item from a retailer, and they can be persuaded by marketing and commercials.
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