An Investigation Of Nigerian Consumer’s Online Shopping Behaviour

| December 12, 2016

Abstract

This research proposal deals with an investigation of the online shopping behaviour among Nigerians living abroad. It has been established from research that a few Nigerians embrace technology in doing business. The research paper starts with an introduction about the problem statement to be addressed in the research. The objective is to find out the factors that contribute to the unique online shopping behaviour among the Nigerians.

The proposal highlights trends to be investigated that are online shopping in Nigeria. Data to be used in the research will be gathered through the use of a questionnaire given at random to 100 respondents. The obtained data will be analyzed based on the scaled factors given for each response by the participants. The representative sample gives the best results because it uses respondents of diverse fields who are in a position to use online shopping systems. The results can be used by any developing country because the online shopping trends for developing countries are the same.

1. Introduction

The nature of how individuals do business has changed from time to time due to individual needs and the emerging business technologies. Electronic commerce is one of the recent forms of online shopping that has been adopted by many business individuals in the world. According to Ghosh (1997, p. 1),  “E-commerce provides consumers the ability to bank, invest, purchase, distribute, communicate, explore, and research from virtually anywhere an Internet connection can be obtained.” Therefore, electronic commerce can be defined as doing business through the internet. This trend of doing business has gained momentum in the global business world because of the increased web advertising (Jackson et al. 2003). This research proposal aims at determining the effect of web advertising on the Nigerian consumer’s online shopping behaviour.

1.1. E-commerce development in Nigeria

The basis of electronic commerce depends on the level of technology in a country. Nigeria is a developing country that has experienced improvements in its technological aspect in the recent past with a total population of about 16 % embracing the use of the internet (Internet World Stats, 2009). However, most of the Nigerians have not exploited the full potential of using the internet fully. In addition, the recent advancement of technology has enabled many Nigerians to see the need to embrace technology in doing business. As such, internet usage has started gaining familiarity among the Nigerians. A research by Folorunso et al. (2006, p. 2226) shows that only 32% of Nigerians who had heard about electronic commerce had embraced the technology. This low number of Nigerians using the internet to do business may contribute to the Nigerian online shopping behaviour.

1.2. Problem statement

The use of the internet in doing business in Nigeria is slower than other countries in the world. This is contrary to the vital importance provided by the use of the internet in advertising the product. Most of the Nigerians are ignorant about online shopping, but those who embrace the internet do not prefer to do online shopping because they assume products advertised in the internet are either expensive or strange to their traditional culture. This consumer behaviour has reduced efforts of globalization into the Nigerian markets. The question, then, is what should be done about this online consumer behaviour to promote globalization?

Research objectives

This research is carried out to find out the online shopping behaviour among the Nigerians. The objectives of the study will be:

  1. To Investigate the behaviour of online shopping among Nigerians
  2. Determine whether web advertising has an influence to the online shopping behaviour among Nigerians.
  3. To investigate the risks associated with online shopping.

1.3. Research structure

This research will start by introducing the problem statement why it is an important study among the Nigerians. This will be followed by outlining the objectives of the study. The existing literature review sets to give the research the basis on which the factors being studied will be based. The methodology section will propose a how the factors can be investigated and why the chosen methods for study are preferred. Lastly the research will highlight the limitations that are likely to affect the results of the study and how they can be reduced to make the results more validated. The main chapters will be as follows;

  1. Introduction
  2. Literature Review
  3. Methodology
  4. Data Analysis and Findings
  5. Conclusions and Recommendations

2.  Literature review

Folorunso et al. (2006, p.2224) suggested that the factors that affect online shopping behaviour are: “establishing cost, accessibility, privacy and confidentiality, data security, network reliability, credit card threat, authenticity, citizens’ income and education.” The shopping behaviour of Nigerians living abroad is unique as it can be identified as unique among the rest. Among the factors suggested by Folorunso income levels and data security was established as the major factors contributing to the unique behaviour of the Nigerians.  In another research by Ayo (2006, p.2), he argued that cyber-crime as the major factor behind the low rate of adopting the electronic commerce technology. Further, other important factors have been established as contributing to this unique behaviour among the Nigerians. These factors are inferior online payment methods, lack of trust in web retailers, poor technological infrastructures, and fear of insufficient security in online environments (Adeshina & Ayo, 2010).

In contrast to the slow rate at which online shopping has been embraced by the Nigerians, they have increased use of electronic banking and payment systems as they regard these technology issues as more secure. The major use of electronic banking is to pay bills, money transfer activities and obtaining banking statements at any time they wish to have the statements for their daily activities. The major factors identified on the previous research do not point to the exact situation because even through the electronic banking services provided by this technology, users are also likely to be exposed cyber crimes (Egwali, 2009).

Advertising is used as a marketing strategy to familiarise the consumers to the products in the market. In a global market, advertising through the internet gives the consumers an avenue to consider a varied field of products that will satisfy their specific demand. Although internet advertising comes with a lot of advantages to both the consumer and the advertising agency, it has not been fully embraced in the Nigerian market. This indicates that the consumers in the Nigerian market have varied perceptions about web advertising. According to Wohn and Korgaonkar (2003), “males exhibit more positive beliefs about web advertising and more positive attitudes toward web adverting than females. Additionally, male are more likely than females to purchase from the web and surf the web for functional and entertainment reasons, whereas females are more likely to surf the web for shopping reasons.” From these findings, it can be deduced that there are specific online shopping behaviour among Nigerians. The research will carry out a detailed review of the existing literature on the behaviour of online shopping among Nigerians.  The researcher will critically analyse the literature both that are in support of the research and those that are not.

3.Methodology

This research will use qualitative approach to establish an in-depth description of the problem of the study. This method will be the most appropriate because it does not apply any mathematical judgment of the results (Higgs & Cherry, 2009).  According to Miles and Huberman (1994), qualitative approach is the best because it is concerned with meaningful characteristics, stories, visual renders, observations and words. This study will be based on the individual behaviour on online shopping.

Consequently, the research sample will be identified among them Nigerian Diaspora students, professionals and business people. The research sample will be conducted to 100 Nigerians. The research sample gives a good study population because of the sample size. In addition, the use of this type of respondents will give basis to the research because these are people who have the know-how of technological matters. Additionally, since online shopping is based on the use of technology this type of respondents is the best research population because they are quite aware of the online shopping activities using the internet. Thus, the results of the findings will give a true reflection of the real behaviour of the Nigerians online shopping.

3.1.Research approach and strategy

The research will be conducted for 100 Nigerian. The respondents will be selected at random both that live in UK and those that are in Nigeria. The respondents will be supplied with questionnaires to investigate their online shopping behaviour. The data that will be used in this study will be sourced from both primary and secondary sources. The primary data will be collected by sending questionnaires to the respondents. The researcher will conceal the identity of all respondents for confidentiality purposes. All respondents will be given unique ID numbers like P1, P2, and P3 that will represent participant one, two and three respectively. Secondary data will be collected from existing literature that is in the public domain. This means that there will be no permission sought to access the materials or cost incurred to collect data.

3.2.Data collection

The data for this research will be collected through the use of questionnaires. The questionnaires will be subdivided into three sub-groups as follows: online shopping, electronic commerce and internet usage. Each of the sub-categories will be aiming to investigate the behaviour of online shopping among Nigerians. (See appendix 1)

3.3.Data analysis

Qualitative study does not involve numerical values, and thus, an analysis tool will be used that will give correct interpretation and description while at the same time avoiding biases (Sewell, 2008). Therefore, the data will be analysed using case descriptions of the phenomenon. A detailed report will then be developed based on the analysis of the data collected through questionnaires. After, conclusions will be drawn from the analysis of the study, and more so the researcher will give recommendations that for future studies.

3.4.  Ethical issues

The ethical issue in this research study will be to keep the anonymity of the respondents. Each of the involved respondent’s information will be treated with great privacy based on individual data protection policy.

3.5.Research limitations

The sample used to represent the Nigerians is comparably small.  A bigger representative sample should be used to determine the real factors. The random sampling method is good, but is faced with the challenge of some respondents failing to cooperate. The best approach would be to administer the questionnaire directly to the respondents to ensure that there is 100% response from the targeted representative sample.

4.Conclusion

This research is an important finding that can be used to implement developmental changes in developing countries. Nigeria is one of the developing countries and the trends shown by its abroad citizens can be used as a model for other developing countries. Also, since technology implementation in the business environment is inevitable then it is important to identify these factors in order to make the required adjustments to make the developing countries able to embrace technology. The representative sample will give accurate results of the research study because it will use a study population that can embrace technology.

References

Adeshina, A & Ayo, C .2010. An Empirical Investigation of the Level of Users.  Acceptance of E-Banking in Nigeria. Journal of Internet Banking and Commerce, 15 (1), 1-13.

Egwali, A. 2009. Customers Perception of Security Indicators in Online Banking Sites in Nigeria. Journal of Internet Banking and Commerce, 14 (1), 1-15.

Folorunso, O et al. 2006. Factors Affecting the Adoption of E-commerce: A Study in Nigeria. Journal of Applied Sciences, 6 (10), 2224-2230.

Ghosh, A .1997. Securing E-Commerce: A Systematic Approach. Journal of Internet Banking and Commerce, 1-4.

Internet World Stats, 2009. Nigeria Internet Usage and Telecommunications Reports. Retrieved from < http:// www.internetworldstats.com/af/ng.htm>.

Jackson, P. et al. 2003. e-Business Fundamentals. London: Dorset House Publishing Company.

Miles, M.B. & Huberman, A.M. 1994. Qualitative Data Analysis: An Expanded Sourcebook, 2ndedn, Newbury Park, CA: Sage.

Sewell, M., 2008. The Use of Qualitative Interviews in Evaluation, Tucson, AZ: The University of Arizona.

Sewell, M., 2008. The Use of Qualitative Interviews in Evaluation, Tucson, AZ: The University of Arizona.

Wohn, L & Korgaonkar, P 2003, Web advertising: gender differences, gender differences in belief, attitude and behavior. Florida: MCB UP.

Appendix 1

The questionnaire

  1. Online shopping

Have you been using online shopping in Nigeria?

Do you use online shopping in the UK?

If yes how many times did you shop online while in Nigeria per week?

How many sites do you visit per week while in the UK or Nigeria?

What products do you shop for with this service in Nigeria or the UK?

What are the risks associated with online shopping?

2.0 Electronic commerce

Have you been using electronic commerce while in Nigeria?

Do you still use electronic shopping in the UK?

If not, what are the reasons?

What functions do you use the service for in Nigeria or the UK?

3.0 Internet usage

Do you use internet regularly?

What do you use the internet for?

Do you think there are risks associated with internet usage?

How often do you use the internet for online shopping?

 

 

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Category: Business & Management, Marketing, Research Proposal Examples