ABSTRACT
This study evaluates students’ perception of online shopping in AKSU. The search objectives were to investigate the extent of students’ awareness and knowledge of online shopping, find out their extent of usage of online shopping and investigate some factors that lead to unfavourable online shopping behaviour, among others. To achieve these objectives, a descriptive survey design was adopted to carry out the study. A sample size of 279 participants was drawn from population of 5,838 students. Both multi-stage and random sampling techniques were used to distribute copies of structured questionnaire. After a careful analysis of the available data, the study revealed among others, that though 92% of participants are aware of online shopping, yet only a few subscribed to online shopping. Also, that students’ perception of risk factors negatively influenced the adoption of online shopping. Therefore, the study recommends among others that government should intensify sensitization on safe online shopping and that online stores should formulate policies that can protect online shoppers of their personal and financial information each time they shop online. Overall, the study concludes that though there is public awareness of online shopping, the patronage to it is quite minimal.
TABLE OF CONTENTS
Title Page – – – – – – – – – i
Declaration – – – – – – – – – ii
Certification – – – – – – – – – iii
Dedication – – – – – – – – – iv
Acknowledgements – – – – – – – – v
Abstract – – – – – – – – – vi
Table of Contents – – – – – – – – vii
List of Tables – – – – – – – – ix
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study – – – – – – 1
1.2 Statement of Problem – – – – – – 4
1.3 Objectives of the Study – – – – – – 5
1.4 Research Questions – – – – – – – 5
1.5 Research Hypotheses – – – – – – 6
1.6 Significance of the Study – – – – – – 6
References – – – – – – – 7
CHAPTER TWO: LITERATURE REVIEW
2.1 Theoretical Framework – – – – – – 8
2.1.1 The Technology Acceptance Model – – – – – 8
2.1.2 Diffusion of Innovation Theory – – – – – 9
2.2 Conceptual Framework – – – – – – 11
2.2.1 Product Selection – – – – – – – 12
2.2.2 Payment – – – – – – – – 13
2.2.3 The Development of E-Commerce in Nigeria – – – 13
2.2.4 Types of Online Shoppers – – – – – – 15
2.3 Review of Study – – – – – – – 17
2.4 Review of Related Empirical Studies – – – – 18
References – – – – – – – – 20
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design – – – – – – – 22
3.2 Population of the Study – – – – – – 22
3.3 Sample Side – – – – – – – – 22
3.4 Sampling Techniques – – – – – – 23
3.5 Research Instrument – – – – – – 24
3.6 Techniques of Data Collection – – – – – 24
3.7 Method of Data Analysis – – – – – – 24
CHAPTER FOUR: DATA PRESENTATION ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Data Presentation Analysis – – – – – – 25
4.2 Discussion of Findings – – – – – – – 34
References – – – – – – – – 41
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings – – – – – – 41
5.2 Conclusion – – – – – – – – 42
5.3 Recommendations – – – – – – – 42
References – – – – – – – – 44
Questionnaires – – – – – – – 46
LIST OF TABLES
Table Title Page
Table 4.1: Distribution of Response According to Sex of
Respondents – – – – – – – 25
Table 4.2: Age Distribution of Respondents – – – – 25
Table 4.3: Distribution of Respondents according to their
Educational Level – – – – – – 26
Table 4.4: Distribution of Responses Showing Akwa Ibom State
University Student’s Awareness of Online Shopping – 26
Table 4.5: Distribution of Responses Showing Extent of
Familiarity with Online Stores/Sites – – – 27
Table 4.6: Distribution of Responses Showing the Respondents’
Source of Knowledge of Online Sites – – – 28
Table 4.7: Distribution of Responses Showing How Often
Respondents Use the Internet – – – – 29
Table 4.8: Distribution of Response Showing which Device(s)
Respondents Use to Access the Internet – – – 29
Table 4.9: Distribution of Responses Showing Respondents’
Perception of Online Shopping – – – – 30
Table 4.10: Distribution of Responses Showing Varieties of
Products Respondents Buy Online – – – – 31
Table 4.11: Distribution of Responses Showing Factors that
Influence Online Shopping Behaviour among AKS Students – 32
Table 4.12: Distribution of Responses Showing Challenges Faced
during Online Shopping – – – – – 33
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
New media technologies in this 21st century have witnessed tremendous breakthroughs especially in the area of commerce. Through the e-commerce technology, the internet has revolutionized the mode of business transactions by providing consumers with the ability to bank, invest, purchase, distribute, communicate, explore and research from virtually anywhere, anytime where there is internet access (Anup, 1997).
Access to the internet has become imperative for the advancement of online shopping and by extension e-commerce in Nigeria. Even with the grandest intentions to shop online, if there is no internet accessibility, it would be difficult to undertake any business online. The growth of the number of internet users in Nigeria from 2000 to 2010 is quite alarming as it recorded 21,891.1% growth rate! According to the Internet World Start (2010) (quoted in Ayo, 2011), there were 200,000 internet users in Nigeria in year 2000. This number is however less than 1% of the national population (precise 0.1%). In the year 2006 – the number has grown to 5,000,000 (again just 3.1% of the national population). This figure doubled in 2008 with 10 million people having access to the internet. In 2009, the figure went above double as 23,982,000 people used internet in Nigeria. By June 2010, the number of internet users in Nigeria has grown to 43,982,200, that is, 29.5% of the country’s population.
The potential of internet users’ growth in Nigeria is not unconnected with the increasing rate of access to internet enabled mobile phones, which appears to be the easiest and most common way to access the internet today. The growth of online shopping should inadvertently be sponsored by this growth in the number of internet users in Nigeria. Many online shopping sites are thriving with juicy offers to prospective customers. Some of the sites make the transaction process so easy that most buyers tend to forget about the traditional market setting. These sites are Konga.com, Jumia.com, Jiji.com, Taafoo.com and Slotlimited.com. A site like 234world.com allows buyers to pay to a designated bank account after making online purchases (Ayo, 2011).
Studies have shown that high level of education and increased personal income are two factors that can influence favourable perception of online shopping among prospective buyers (Ayo, 2006; Folrunso et al., 2006; Alley, 2010). Also, these studies pointed out that “Trust” and “Personal Constraints” are among the factors that restrict usage of online shopping in Nigeria. However, these scholars believe that “Trust” and “Consumers‟ perception of Technology” are among factors that are likely to encourage usage of online shopping among Nigerians. They also added that increased exposure to the internet increases favourable disposition to online shopping and development of favourable attitude towards it. Many Nigerians who wish to shop online face a number of challenges. The major aspect of these challenges is the stereotype of Nigerians as fraudsters. This leads to rejection of Debit/Credit cards with Nigerian addresses by some online shopping sites. Even when one’s Debit/Credit card is accepted, a long chain of verification process follows, especially when it is one’s first time of shopping online. This can be very frustrating to Nigerian online shoppers, but it is a cross we will have to carry for now unless of course we re-brand. Government efforts at re-branding Nigeria, especially as it concerns the general global perception was seen as a welcome development but was short-lived. The fluid nature of internet transaction or online communication raises the question of credibility of the source as well as that of the user (who can double as the source and the user at different times). This is in view of the fact that there is no “gate-keeper” to what goes in and what comes out of the web. Also the use of cyber-nyms or pseudo names in online communication makes it difficult to accept the real name of most users even when they appear to be sincere. However, amidst all these difficulties, studies have shown that some Nigerian online stores are doing quite well. They have been able to convince an increasing number of Nigerians to trust them and embrace online shopping (Alley, 2010; www.money.aabnigeria.com).
The top 5 online shopping stores (as at July, 2013) are:
Konga.com
Jumia.com
Taafoo.com
Slotlimited.com
Buyam.com.ng (Source: www.money.aabnigeria.com)
There are top 5 leading online shop/stores in Nigeria. The criteria for selecting these top 5 online stores include:
The activities (number of fans, comments, likes, shares) of each stores’ social media community.
The number of visitors to its website, review (internet) by customers.
Journalists, professionalism, website design and usability, quality of products on display and so on.
Akwa Ibom State University (AKSU) students have had access internet-enabled mobile phones. Many of them demand these devices for many reasons. Some students demand internet-enabled mobile phones mostly for social purposes such as taking pictures and chatting with friends online through such social networking sites like Facebook, Instagram, WhatsApp, Palmchat and Twitter. According to William and Merten (2008), university students are often found to be obsessed with their facebook or twitter page. Boyd and Ellison (2007) add that social networking sites are increasingly attracting the attention of students.
According to Debell and Chapman (2006), youths, adolescents and young adults being the heaviest computer and internet users, primarily using it for completing school assignments, sending and receiving emails, instant messaging and playing of games. But how are they involving in online shopping? What are their perceptions? It is on this note that the study sets to investigate and examine the perception of AKSU students on online shopping. An English Entrepreneur, Michael Aldrich invented online shopping in 1979. His system connected a modified domestic Television to a real time transaction processing computer via a domestic telephone line. He believed that videotext, the modified domestic television technology with a simple menu driven human computer interface, was a “new, universally applicable, participative communication medium the first since the invention of the telephone”. This enabled „closed‟ corporate information systems to be opened to “outside” correspondents not just for transaction process but also for e-messaging and information retrieval and dissemination, later known as e-business.
However, this transaction became the precursor to the social networking patterns of communication on the internet 25 years later. In March 1980, he went on to launch Redifon’s office Revolution, which allowed consumers, customers, agents, distributors, suppliers and service companies to be connected online to the corporate systems and allow business transactions to be completed electronically in real time (Kimberly, 2007). The first secure retail transaction over the internet was either by Net Market or Internet Shopping Network in 1994 (Alorie, 2004). Thereafter, Amazon.com launched its online shopping site in 1995 and eBay was also introduced in 1995 (Kimberly, 2007). Alibaba’s sites Taobao and T-mail were launched in 2003 and 2008, respectively.
1.2 Statement of the Problem
The world has been linked together by the internet. People can have a successful market transaction without face-to-face contact. Online shopping becomes a success as a result of internet enabled mobile phones. Information about many products is shared online. Therefore, online shopping has become a global phenomenon among people with internet enabled mobile phones. Many people are unaware of online shopping in Nigeria. Some perceived to be deceptive. As a result of these, even though they have access to the internet, they pay less attention to online shopping. Among many online shopping stores available in Nigeria, many people still prefer to patronize non -online shopping stores even with higher prices. This trend may be caused by certain factors such as lack of awareness or negative perception of online shopping.
This study seeks to establish the basis for changes in the behaviour of online shopping as well as the level of knowledge and patterns of perception. Therefore, within the scope of this study, it is pertinent to evaluate students’ perception of online shopping in Nigeria using AKSU as a case study.
1.3 Objectives of the Study
The aim of this study is to evaluate students’ perception of online shopping in AKSU. Against this backdrop, the study seeks to achieve the following objectives:
investigate the extent of students’ awareness and knowledge of online shopping in AKSU.
determine their perception of online shopping.
find out their extent of usage of online shopping and also establish various patterns of usage where necessary.
investigate factors that lead to unfavourable online shopping behaviour among students of AKSU.
1.4 Research Questions
In providing answers that meet the objectives of the study, the following research questions were formulated:
What is the extent of students’ awareness and knowledge of online shopping in AKSU?
What is the perception of students about online shopping in AKSU?
What is the extent of students’ usage of online shopping and what products do they buy most?
What are the perceived factors that lead to unfavourable online shopping behaviour among students of AKSU?
