Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Factors Influencing Online Purchase Intention of Shopee’s Consumers in Malaysia

Lee Jing Ru, Tan Owee Kowang, Choi Sang Long, Fong Sook Fun, Goh Chin Fei

http://dx.doi.org/10.6007/IJARBSS/v11-i1/8577

Open access

The purpose of this study is to investigate the factors influencing online purchase intention of an e-commerce platform at Johor Bahru, Malaysia. This research selected Shopee Malaysia as the target e-commerce platform and a few variables from Technology Acceptance Model (TAM) and Theory of Planned Behaviour (TPB) tend to be used and analyzed the online purchase intention of Shopee’s consumers. Online purchase intention can be defined as a situation when an individual plan to purchase a particular good or service through the internet. Hence, it is important to analyze how the four dimensions tend to influence the overall online purchase intention in the e-commerce industry. In Malaysia, e-commerce business is gradually expanding, and it is significant for online retailers to clearly understand which dimensions enable to stand out among other competitors and increase online purchase intention. Data for this study were collected from a sample of 90 guests who live in Johor Bahru and had experienced in purchasing products via Shopee Malaysia. The collected data was analyzed using Statistical Package for Social Science (SPSS) version 23.0 and Partial Least Squares (PLS-SEM) with SmartPLS version 3. The findings revealed that two dimensions which are perceived usefulness and subjective norm positively influence online purchase intention whereas, two dimensions which are perceived ease of use and trust do not have a significant impact. As a result, it is suggested for Shopee Malaysia to appropriately apply relevant specific tactics to enhance those components as well as online purchase intention.

Aghdaie, S. F., Piraman, A., & Fathi, S. (2011). An analysis of factors affecting the consumer's attitude of trust and their impact on internet purchasing behaviour. International Journal of Business and Social Science, 2(23), 147-158.
Agyapong, H. A. (2018). Exploring the influential factors of online purchase intention in Finland. Finland: Business Economics and Tourism International Business.
Aineah, B. N. (2016). Factors influencing online purchasing intention among college students in Nairobi city. Unpublished master’s thesis, United States International University-Africa, Nairobi.
Ajzen, I. (1991). The theory of planned behaviour. Organizational Behaviour and Human Decision Processes, 50(2), 179-211.
Alatawy, K. S. (2018). Factors influencing consumers' intention to use mobile applications for online shopping in the Kingdom of Saudi Arabia (KSA). International Journal of Business and Management, 14(1), 86-94.
Athapaththu, J. C. & Kulathunga, D. (2018). Factors affecting online purchase intention: effects of technology and social commerce. International Business Research, 11(10), 111-128.
Athapaththu, J. C., & Kulathunga, K. M. S. D. (2018). Factors affecting online purchase intention: A study of Sri Lankan online customers. International Journal of Scientific & Technology Research, 7(9), 120-128.
Awang, Z. (2012). Validating the measurement model: CFA. Retrieved 14, March 2019 from file:///C:/Users/Asus/Downloads/7Chapter3AnalyzingtheMeasurementModel.pdf
Cha, J. (2011). Exploring the internet as a unique shopping channel to sell both real and virtual items: A comparison of factors affecting purchase intention and consumer characteristics. Journal of Electronic Commerce Research, 12(2), 115-132.
Cheng, B. L., & Yee, S. W. (2014). Factors influencing consumers’ online purchase intention: A study among university students in Malaysia. International Journal of Liberal Arts and Social Science, 2(8), 121-133.
Chin, C. (2016). Malaysians not buying into online shopping. Retrieved 20, March 2019 from https://www.thestar.com.my/news/nation/2016/10/23/malaysians-not-buying-into-online-shopping/
Chiu, Y. B., Ling, C. P., & Tang, L. L. (2005). “Gender differs: Assessing a model of online purchase intentions in e-tail service”, International Journal of Service Industry Management, 16(5), 416-435.
Compeau, D. R., Higgins, C. A., and Huff, S. (1999). Social cognitive theory and individual reactions to computing technology: A longitudinal-study. Management Information Systems Quarterly, 23(2), 145-158.
Chen, Y., and Barnes, S. (2007), Initial trust and online buyer behaviour, Industrial Management & Data Systems, 107(1), 21-36. https://doi.org/10.1108/02635570710719034
Dharmesti, M., Dharmesti, T. R. S., Kuhne, S., and Thaichon, P. (2019), Understanding online shopping behaviours and purchase intentions amongst millennials, Young Consumers, https://doi.org/10.1108/YC-12-2018-0922
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. Management Information Systems Quarterly, 13(3), 319-340.
Elfil, M., & Negida, A. (2017). Sampling methods in clinical research; an educational review. Emerg (Tehran), 5(1), 52.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
Gefen, D., Karahanna, E., & Straub, D. W. (2003). Trust and TAM in online shopping: An integrated model. MIS Quarterly, 27(1), 51-90.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. (2010). Multivariate data analysis (7th ed.). Upper Saddle River: Pearson Education.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). Los Angeles: SAGE.
Hana, B. S., Mike, M., & Parvaneh, N. (2012). E-commerce is the next frontier in global expansion. New York: ATKearney.
Harn, A. C., Khatibi, A., Ismail, H. (2006). E-Commerce: A Study on Online Shopping in Malaysia. Journal of Social Science, 13(3), 231-242.
Hasan, H., Harun, A., & Rashid, M. S. Z. (2015). Factors influencing online purchase intention in online brand. International Journal of Business Management & Research (IJBMR), 5(5), 63-72.
Juniwati. (2014). Influence of perceived usefulness, ease of use, risk on attitude and intention to shop online. European Journal of Business and Management,6(27), 218-228.
Khatibi, A., Thyagarajan, V., & Seetharaman, A. (2003). E-commerce in Malaysia: Perceived benefits and barriers. Vikalpa, 28(3), 77-82.
Koththagoda, K. C., & Herath, H. M. R. P. (2018). Factors influencing online purchase intention: The mediation role of consumer attitude. Journal of Marketing and Consumer Research, 42, 66-74.
Koufaris, M., & Sosa, W. H. (2004). The development of initial trust in an online company by new customers. Information & Management, 41, 377-397.
Lee, G., & Lin, H. (2005). Customer perceptions of e-service quality in online shopping. International Journal of Retail & Distribution Management, 33(2), 161-176.
Letchumanan, M., & Muniandy, B. (2013). Migrating to e-book: a study on perceived. Library Hi Tech News, 7, 10-15.
Lim, Y. J., Osman, A., Salahuddin, S. N., Romle, A. R., & Abdullah, S. (2015). Factors influencing online shopping behavior: The mediating role of purchase intention. Procedia Economics and Finance, 35, 401-410.
Liu, C., Bao, Z., and Zheng, C. (2019), Exploring consumers’ purchase intention in social commerce: An empirical study based on trust, argument quality, and social presence, Asia Pacific Journal of Marketing and Logistics, 31(2), 378-397. https://doi.org/10.1108/APJML-05-2018-0170
Malaysian Communications and Multimedia Commission. (2019). Internet users survey 2018. Retrieved 20, March 2019 from
https://www.mcmc.gov.my/skmmgovmy/media/General/pdf/Internet-Users-Survey-2018-(Infographic).pdf
McKnight, D. H., & Chervany, N. L. (2001). What trust means in e-commerce customer relationships: An interdisciplinary conceptual typology. International Journal of Electronic Commerce, 6(2), 35-59.
Messick, S. (1995). Standards of validity and the validity of standards in performance assessment. Educational Measurement: Issues and Practice, 14(4), 5-8.
Mohajan, H. K. (2017). Two criteria for good measurements in research: Validity and reliability. Annals of Spiru Haret University, 17(3), 58-82.
Nguyen, T. D., & Barrett, N. J. (2006). The adoption of the internet by export firms in transitional markets. Asia Pacific Journal of Marketing and Logistics, 18(1), 29-42.
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
Pallant, J. (2011). A step by step guide to data analysis using the SPSS program: Survival manual (4th ed.). McGraw-Hill: Berkshire.
Rehman, S. U. (2018). Impact of financial risk, privacy risk, convenience, and trust on online shopping with mediating role of consumer purchase intention in Pakistan. International Journal of Academic Multidisciplinary Research (IJAMR), 2(8), 27-34.
Reibstein, D. J. (2002). What attracts customers to online stores, and what keeps them coming back? Journal of the Academy of Marketing Science, 30(4), 465-473.
See, S. S., Nor, K. M., & Al-Agaga, A. M. (2012). Factors affecting Malaysian young consumers’ online purchase intention in social media websites. Procedia - Social and Behavioral Sciences, 40, 326-333.
Straub, D. W. (1989). Validating instruments in MIS research. MIS Quarterly, 13(2), 147-169.
Taherdoost, H. (2016). Validity and reliability of the research instrument: How to test the validation of a questionnaire/survey in a research. International Journal of Academic Research in Management (IJARM), 5(3), 28-36.
Tan Y. H., & Thoen W. (2001). Toward a generic model of trust for electronic commerce. International Journal of Electronic Markets, 5(2), 61-74.
Tan, P. K., Goh, H. B., Stany, W. L. F., & Yeow, J. A. (2017). Factors that influence the consumer purchase intention in social media websites. International Journal of Supply Chain Management, 6(4), 208-214.
Thatcher, R. (2010). Validity and reliability of quantitative electroencephalography. Journal of Neurotherapy, 14, 122-152.
TimeTrade. (2019). Study: 85% of consumers prefer to shop at physical stores vs. online. Retrieved 20, March 2019 from https://www.timetrade.com/about/news-events/news-item/study-85-of-consumers-prefer-to-shop-at-physical-stores-vs-online/
Twycross, A., & Shields, L. (2004). Validity and reliability- What’s it all about? Part 2: Reliability in quantitative studies. Paediatric Nursing, 16(10), 36.
Thamizhvanan, A., and Xavier, M. J. (2013), Determinants of customers' online purchase intention: an empirical study in India, Journal of Indian Business Research, 5(1), 17-32. https://doi.org/10.1108/17554191311303367
Wright, S. (1921). Correlation and causation. Journal of Agricultural Research, 20, 557-585.
Zhao, Z., & Cao, Q. (2012). An empirical study on continual usage intention of microblogging: The case of Sina. Nankai Business Review, 3(4), 413-429.

In-Text Citation: (Ru et al., 2021)
To Cite this Article: Ru, L. J., Kowang, T. O., Long, C. S., Fun, F. S., & Fei, G. C. (2021). Factors Influencing Online Purchase Intention of Shopee’s Consumers in Malaysia. International Journal of Academic Research in Business and Social Sciences, 11(1), 761–776.