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Online Shopping Intention of Generation X in Malaysia: Analytical Essay

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1.0) Introduction

In this chapter, the writer is discussing an overview to the study that includes a general context of the topic, research aim, research question, and an overview of the study.

1.1) General context of a study

In this era of globalization, online shopping is one of the convenient way to shopping for young people and families to shop. Online shopping is the way toward purchasing goods and services straight from the organization offering goods via the web (Sohail, 2014). Online shopping also can also be said as internet shopping or electronic shopping.

According to (Alias, 2018) the internet penetration of Malaysia is now 85.7 percent at the 19th of march 2019. As a consequence, it is recognized that online shopping in Malaysia continues to grow year after year. However, in the global retail e-commerce index, Malaysia was one of the top 30th countries which an online market attractiveness score as 36.8 percent mentioned by (Mike Moriarty, 2013). According to (Ariff, Sylvester, Zakuan, Ismail, & Mat Ali, 2014) The demand for internet shopping is anticipated to increase from RM1.8 million in 2011 to RM 5 million by 2015.

According to (Masoud, 2013) the cause individuals go for online shopping due to comfort to shopping, has a choices, able to shopping 24 hours, saving more time, and avoid crowded walking. However, perceived risk was always the barrier to online shopping mentioned by (Haryo Bismo Putro, 2015).

According to (Serafino, 2018) saying that generation x individuals are born between 1965-1980 which their ages are between 38- 53 years old. According to (Lister, 2018) saying the generation X label as a marketing goal for all kind of businesses due they are in the maximum expenditure and earning ages. (Ha, 2018) Saying that generation X has more power spending when compared to generation Y. In view of this context, its vital to know the impact of perceived risk on the intention of generation X to do online shopping.

1.2) Research aim

According to the (internet world stats, 2019) mention that internet usage in Malaysia has increased from 3270,000 users in 2015 to 4383000 in users 2019. In this era of globalization, individuals are living with high technology development and the web users are keep increasing, however, there are also number of Malaysian consumers are suspicious to shop online and decline to shop online because they dont have much experience on it by (Chee Wei Ming, 2013). According to Forrester’s report (2010) despite constant development, internet purchases remain a tiny proportion of 7 percent of complete customer revenue cited in (ALMOUSA, 2014 ). Well, according to Horrigan (2008) the population of online users increasing but 58 percent of internet customers dont have an enjoyable on internet shopping experience cited as (Sandra Forsythe, 2014). Moreover, the perceived risk variable need to be further investigated as perceived risk is considered one of the variable influencing internet purchasing desires in Malaysia (Cheng Boon Liat, 2012 ).

There have been several previous empirical types of research to explore obstacles to shop online. (PINTO, 2013) Says individuals in India why they are not doing online shopping because they want to touch and feel the goods in other words the quality of the product, a factor linked to the services and financial consideration. According to (Sangruang, 2011) mention that individuals in Taiwan also facing adversely effect on online shopping which is perceived risk variables such as performance, social risk, physical, and convenience. In another research undertaken by (ALMOUSA, 2014 ), in Saudi Arabia the vital variables that negatively affect online shopping by few types of perceived risk such as time, finance, privacy, social, performance, and psychological.

Well, the past study has been carried out in other Asian nations such as Taiwan, India, and China. The research results in other nations may not be completely relevant in the context of Malaysia. In addition, perceived risk is often regarded as a one-dimensional structure rather than a multi-dimensional structure for most of the previous research in Malaysia. The approach in which distinct dimensions of perceived risk works independently to affect the intention to shop online has not been studied carefully. Therefore, there is a lack of comprehension of how distinct kinds of perceived risk impact the intention of people to embrace online shopping in Malaysia. Moreover, most of the previous research didnt concentrate specifically on generation X either in the context of Malaysia or other nations. However, the variables influencing the intention of generation x to embrace shop online are somehow unsure. So this research intends to concentrate on the perceived risk that represents obstacles to online shopping among generation x in Malaysia.

1.3) Research question

Research question

  1. what is the connection between product risk and the online shopping intention of Gen X in Malaysia
  2. what is the connection between safety and security risk and the online shopping intention of generation X in Malaysia
  3. what is the connection between the financial risk and the online shopping intention of generation X in Malaysia
  4. what is the connection between the time risk and the online shopping intention of generation X in Malaysia
  5. what is the connection between the shipping or delivery risk and the internet shopping intention of generation X in Malaysia

Research objective

  1. To determine the connection between product risk and online shopping intention of generation X in Malaysia
  2. To determine the relationship between privacy and security risk and the online shopping intention of generation x in Malaysia
  3. To determine the connection between financial risk and the online shopping intention of generation X in Malaysia
  4. To determine the connection between time risk and the online shopping intention of generation X o Malaysia
  5. To determine the connection between the security risk and the online shopping intention of generation X in Malaysia

1.4) Overview

This research seeks to continue theoretically to understand the current context of the shop online in Malaysia to explain the variables that impede on generation X from adapt to shop online that has not been thoroughly investigated before. In addition, this research offers whether the perceived risk can affect the online shopping intention of generation X. this research focusing on the immediate connection between different aspects of perceived risk and the online shopping intention of generation X in Malaysia.

This research also aims to full fill the study gap by treating perceived risk as a multidimensional structure to provide a better knowledge of which risk dimension plays an important part in affecting generation Xs desire to ship online in Malaysia. This research alerts e-marketers tot the perception of the risk of generation X to online shopping. E-marketers can understand what sizes of risk generation X is a concern with and therefore customize reduce the risk approaches to specifically decrease their concerns. Moreover, when well know about the barriers that affect the online shopping intention of generation X the e-marketers also can provide goods and services to attract more individuals. This research also enables potential e-marketers who are planning to set up an e-commerce business to get a clear image of their business plan.

Bibliography

  1. Alias, A. ( 2018, March 19). Malaysia’s Internet penetration is now 85.7 percent. Retrieved 6 3, 2019, from new straits times: https://www.nst.com.my/business/2018/03/346978/malaysias-internet-penetration-now-857-cent
  2. ALMOUSA, M. ( 2014, June). The Influence of Risk Perception in Online Purchasing Behavior: Examination of an Early-Stage Online Market. International Review of Management and Business Research, 3(2), 779 -787.
  3. ALMOUSA, M. ( 2014, June). The Influence of Risk Perception in Online Purchasing Behavior: Examination of an Early-Stage Online Market. International Review of Management and Business Research, 3(2), 779-787.
  4. Ariff, M. S., Sylvester, M., Zakuan, N., Ismail, K., & Mat Ali, K. (2014). Consumer Perceived Risk, Attitude and Online Shopping Behaviour; Empirical Evidence from Malaysia.
  5. Chee Wei Ming, K. D. (2013, January). Online Shopping and Customer Satisfaction in Malaysia. International Journal of Marketing Practices – IJMP, 1(1), 43-51.
  6. Cheng Boon Liat, L. H. (2012 ). A Study Of E-Shopping Intention In Malaysia: The Influence Of Generation X & Y. Australian Journal of Basic and Applied Sciences, 6(8), 28-35.
  7. Ha, L. (2018, 11 19). Generation X: A Small but Mighty Generation. Retrieved 06 14, 2019, from euromonitor international: https://blog.euromonitor.com/generation-x-a-small-but-mighty-generation/
  8. Haryo Bismo Putro, B. H. (2015). Factors Affecting Purchase Intention of Online. British Journal of Economics, Management & Trade, 9(1), 1-12.
  9. internet world stats. (2019, 6 10). INTERNET GROWTH STATISTICS. Retrieved 6 2019, 2019, from internet world stats: https://www.internetworldstats.com/emarketing.htm
  10. Lister, M. ( 2018, November 28). Generational Marketing: How to Target Millennials, Gen X, & Boomers. Retrieved 06 14, 2019, from workstream: https://www.wordstream.com/blog/ws/2016/09/28/generational-marketing-tactics
  11. Masoud, E. Y. (2013). The Effect of Perceived Risk on Online Shopping in Jordan. European Journal of Business and Management, 5(6), 76 – 87.
  12. Mike Moriarty, P. N. (2013). online retail is front and center in the quest for growth. the 2013 global retail e-commere index TM, 1 – 19.
  13. PINTO, N. L. ( 2013, August). UNDERSTANDING THE BARRIERS TO ONLINE SHOPPING AMONG INDIANS. International Journal of Research in Humanities, Arts and Literature (IMPACT: IJRHAL), 1(3), 35-44.
  14. Sandra Forsythe, W.-S. K. ( 2014). THE IMPACT OF ONLINE SHOPPING EXPERIENCE ON RISK PERCEPTIONS AND ONLINE PURCHASE INTENTIONS: DOES PRODUCT CATEGORY MATTER? Journal of Electronic Commerce Research, 15(1), 13-24.
  15. Sangruang, J.,.-M. (2011). The Perceived Risks of Online Shopping in Taiwan. Social Behavior and Personality: an international journal, 39, 275-286.
  16. Serafino, J. (2018, MARCH 1). New Guidelines Redefine Birth Years for Millennials, Gen-X, and ‘Post-Millennials’. Retrieved 06 12, 2019, from http://mentalfloss.com: http://mentalfloss.com/article/533632/new-guidelines-redefine-birth-years-millennials-gen-x-and-post-millennials
  17. Sohail, M. S. ( 2014, October 20 ). Factors Impeding Online Shopping: An Arab World Perspective. European Online Journal of Natural and Social Sciences, 3(4), 972-982.

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