THE INTENTION IN PURCHASING ONLINE FROM PRODUCT ATTRIBUTES

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1 THE INTENTION IN PURCHASING ONLINE FROM PRODUCT ATTRIBUTES Haslinda Musa 1, Mohd Amin Bin Mohamad 1, Juhaini Jabar 1, Juliana Mohd Sam*, Fadhlur Rahim Azmi 1 1 COSSMET, Institut Pengurusan Teknologi dan Keusahawanan *Universiti Teknikal Malaysia Melaka (UTeM), Durian Tunggal, Melaka, Malaysia haslindamusa@utem.edu.my ABSTRACT This research paper examines the intention of buyer to purchasing online, by the influences of three types of product attributes which are features, functions and benefits and figure out the relationship of these variables. Four (4) IPTAs has been chosen when developing the model of buyer intentions where students have been asked several set of questions to reflect their perceptions of product attributes. The IPTAs involved in this study includes UTEM, UKM, UUM, and UNISZA. Both online and offline survey through the distribution of questionanires has been completed, and the data collected were analysed quantitatively, from simple analyses such as mean scores, to more sophisticated analysis such as multiple regresssion. The result shows that the variables of product attributes are significant towards online purchasing among students. Keywords: Product attribute Online buyer Student INTRODUCTION The popularity of Web 2.0 has helped in the growth and public popularity of social networks and has created a new world of collaboration and communication (Sanjukta and Kristian, 2011). The internet has become one of the most important communication channels in the world and growing internet usage is motivating some changes in the consumer purchasing process (Casalo et al., 2007). At the present time, the internet is not only a networking medium, but also as a transaction medium for consumers at global market in the world, and becomes dominant retailers in the future. The most necessary element of e-retail offers a direct interactive channel as well as no time definition, people and place. Shop on the Internet becomes an alternative to consumers since it is more comfortable than conventional shopping which usually attributed to anxious, crowded, traffic jam, limited time, parking space and etc (Eri, Y., Islam, M. A., & Daud, K. A. K. 2011). It is because of the rapid diffusion of information technology system in the world. There have a lot of social media as a medium totransfer production of customer for example Facebook. According to Universal Maccann International (2008), social media is one of the most popular needs among internet user. It is defined as online applications, platforms and media, which aim to facilitate interactions, collaborations and the sharing of content. The most important in online business are product attributes to attract customer bought the product. The researcher focus three items in product attributes. Figure 1 shows the research model. Figure-1. Research Model PRODUCT ATTRIBUTES According to Nyrud et al. (2008), emphasized in an early article in wood-product attributes that it is of substantial importance to identify (forest) product attributes that are desired by customers so that the firm can deliver a product and meets consumer expectations. According to Chryssochoidis et al. (2007), several other studies suggest that the influence of the COO - effect depends not only on the country of origins or the product category, but on specific product attributes as well (attribute-specific). It shows that the most importantof product attribute towards sale performance and influence of buyer intentions. Refers to the country of an origin of a product made on its label influences consumers perceptions of its quality country-specific yet the magnitude of the effect depends on the product category product-specific (Balabanis and 1

2 Diamantopoulos, 2004). Product attributes information is associated with marginal utility and curvature (satiation) parameters of the various utility functions (Kim, J., Allenby, G. M., & Rossi, P. E, 2007). BENEFITS OF PRODUCT In this part, the researcher focuses on three dimensions which are testimony to customer, quality and design of the product. According to C. Merle Crawford et al. (2011) benefits are the most desirable form of protocol to use better than functions or features. An advantage of specifying the protocol in terms of the benefits is that places no (or very few) constraints on the R&D staff: they are given free rein to figure out how best to design the product so that it provides the desired benefit. According to Heyer, K. (2007) customer testimony will continue to be relevant in the same way that it has always been relevant; customers remain the most objective marketplace participants. Consumers should rely more on product recommendations of these products of for search products (Senecal et al., 2004). According to Senecal et al. (2004), from word-of-mouth (WOM) influence decision-making for buying the product. For example this is the best product of the market. According to Slotegraaf et al. (2004), the results show that the effect of attribute satisfaction with satisfaction with product quality asymmetrically shifts over time, depending on the resolvability of the attribute. Besides, it appears that customers may judge the quality of products under warranty in accordance with an attribute-specific assessments, which consequently point to the importance of firms examining satisfaction from an attribute level. However, according to Nelson, (1974) in journal Senecal et al. (2004) said search qualities are those that the consumer can determine byinspection prior to purchase, and experience qualities are those that are not determined prior to purchase FUNCTIONS OF PRODUCT In this part, the researcher focus on two dimensions which are information of product and target user. According to C. Merle Crawford et al (2011) some people feel a performance parameter (a function) may come to be e-pressed as a design parameter. For example, on the matter of the car pickup above, the statement might be Use the new German 11-Z engine. Such a new engine would be a technology, but clearly might be a solution to a need, not a description of it, there are probably many other ways rapit pickup could be achieved. According to Azad, N., & Hamdavipour, L. (2012), the result of their research shows that the informative factors such as product information and trade name play the most important role on choosing a product and give impact on the customer s decision for buying a product. Its show that, the importance of information about product and give influence to buyer intentions. Based on Jie and Street (2010), the research supported one of positive perception toward advertising which found in research that stated users rating the advertising positively, since they think that there are availability of information about product that can be learnt anytime. According to Zhou et al (2007) traditionally, shopping is an activity more favoured by women. It is women who are usually in charge of household shopping and hold more positive attitudes towards the traditional store and catalogue shopping than their male counterparts (Alreck and Settle, 2002). However, the new shopping channel provided by the Internet seems to result in a different, if not opposite, gender pattern. Although there was no significant difference between online shoppers and non-shoppers in terms of gender (Donthu and Garcia 1999), men were found to make more purchases (Li et al. 1999; Stafford et al. 2004) and spend more money online (Susskind, 2004) than women. Men s perceptions of online shopping were approximately the same as (Alreck and Settle 2002) or even more favourable than (Slyke et al., 2002) those of female consumers. FEATURES OF PRODUCT In this part, the researcher focuses on two dimensions which are pictures of product and packaging of the product. According to C. Merle Crawford et al. (2011), technical people often come up with features first, based the technologies they have. According to Zhou et al. (2007), online consumers are becoming increasingly diversified. It is shown in this study that various consumer factors influence online shopping. Accordingly, the requirements for information content and presentation format provided by online retailers may differ. Therefore, an optimal online marketing strategy is to personalize shopping environments to meet the needs and preferences of different consumers (Zhou et al. 2007). Any product with good packaging with sufficient information on labelling and suitable label will have a better change of absorbing customer s attractions (Azad, N., & Hamdavipour, L., 2012). According to Silayoi and Speece (2007) study, they examined these issues using a study among consumers for packaged food products in Thailand, which is a very competitive packaged food products market. Their results indicated that perceptions about packaging technology played the most important role in consumer to purchase. Williams et al. (2008) studied a life cycle perspective on environmental effects of customer focused packaging development. The study investigated the possibilities of increasing customer satisfaction and reducing the environmental effect from food-packaging systems in a life cycle perspective, using results from a study on consumers' demands on packaging based on Kano's theory of attractive quality. Their results showed that there were some potentials to increase customer satisfaction and at the same time decrease in the environmental impact of 2

3 the food-packaging system, especially when the packaging design assists to reduce flood losses. Ogba and Johnson (2010) performed an investigation on how packaging affects the product preferences of children and the buyer behaviour of their parents in the food industry. This shows that the importance of packaging give buyer intention to buy the product. RESEARCH PROBLEM The Internet is the world s biggest shopping mall that allows enterprises to do their business with low cost involved, yet covering global market (Paynter, J., & Lim, J, 2001). Based on Berita Harian Online (2015), the number of internet users in Malaysia is expected to increase to 25 million by 2015 from 18 million in 2012, according to the 2013/3014 Economic Report released by the Finance Ministry here today. The report said the rate of household broadband penetration increased to 66.8 % at the end of June 2013, while the mobile phone penetration rate exceeds 100 %, there are now 42.6 million subscribers. Nowadays, online business is the one of platform to distribute product or service direct to the customer. In online business, product attribute is one of the strategies for new product management to attract buyer intentions. Mostly in online buyer, they look products that give intentions for the first look to them. To overcome this problem, online seller use product attributes to attract customer buy the product. This shows that internet users in Malaysia are more likely to online shopping. This problem occurs because the facilities are widely available through online as discussed in the product attributes. The potential online shopping users can access lots of information regarding product attributes. According to Zhou, L., Dai, L., & Zhang, D. (2007), the potential benefits of online shopping for consumers include convenience, various selection, low price, original services, personal attention, and easy access to information, among others. RESEARCH QUESTION Throughout this study, the research questions are what is the relationship between the feature of the product and the buyer intentions? How the benefit of the product can influence buyer intentions in online purchasing? And what is the relationship the function of rhe product and the buyer intentions? RESEARCH OBJECTIVE Throughout this study, the research objectives are to determine the relationship between feature of the product towards buyer intentions in online purchasing, to study benefits of product influence buyer intentions in online purchasing and to determine the relationship between the function of a product and buyer intentions in online purchasing. SCOPE AND LIMITATIONS OF THE STUDY The scope of research is limited only product attribute and concentrate of three characteristics which are featured, benefit and function of the product. The location of this study is limited of Student IPTA at UTEM, UKM, UNSIZA, UUM, Malaysia and others. IMPORTANCE OF THIS STUDY The researcher hopes that the research will help the online business to get insight on the relationship between product attributes and buyer intentions. The researcher also would like to know the effect of product attributes towards buyer intentions. In addition, the purpose of this study is to become expert in these research areas. The researcher also aims to increase the skill and knowledge about product attributes. RESEARCH DESIGN The researcher used conclusive research design for this research project. Conclusive research design is meant to provide information that is useful in reaching conclusions or decision-making. This purpose of conclusive research is to provide a reliable or representative picture of the population through the use of valid research instrument. Conclusive research can be sub-divided into two major categories which are descriptive research and causal research. For this research, the researcher used descriptive research method because this method helps to provide answers to the question of what, why, who, where and how associated with a particular research. For the purpose of this research, descriptive research was used to obtain the relationship product attributes and buyer intentions in online purchasing. METHODOLOGICAL CHOICES The Methodological choice in this research is related to whether the researcher follows a single quantitative or qualitative or mixed method which use both quantitative and qualitative. Each of these options is likely to call for a different set of an element to achieve coherence in this research design (Saunders et al., 2012). Only one methodology will be used in this research which is quantitative methodology. Quantitative methodology research involves the use quantitative data and analysis of data and material. 3

4 DATA COLLECTED METHOD The researcher using primary data and secondary data in this research. The primary data for this research are collected by using questionnaires. One set of questions was designed and distributed to 100 respondents and focus from Student IPTA which is UTEM, UKM, UUM, UNISZA and other university in Malaysia. The questionnaires are based on this research topic. A questionnaire has to construct carefully so that the information collected are valid. Secondary data sources such as books and journals are the subsequent publication of primary data sources. These publications are aimed at a wider audience. They are easier to locate than primary data sources as they are better covered by the tertiary data sources. HYPOTHESIS TESTING Hypothesis 0: Benefits of the product will not positively related to the buyer intentions in online purchasing. Hypothesis 1: Benefits of product will be positively related to the buyer intentions in online purchasing. Hypothesis 0: Functions of the product will not positively related to the buyer intentions in online purchasing.hypothesis 1: Functions of products will be positively related to the buyer intentions in online purchasing. Hypothesis 0: Features of the product will not relate positively to the buyer intentions in online purchasing. Hypothesis 1: Features of the product will be related positively to the buyer intentions in online purchasing. RESULT Table-1. Gender. Table 1 and show that there are 100 respondents participated in this research. The results of gender analysis show that the percentages of respondents are 85% females and the rest 15% are male. It consists of 85 females and 15 males. Table-2. Age. Table 2 refers to the respondents age groups. The age of respondents was divided into three groups. The table and Figure show, respondents between 22 to 25 years old give the highest participation in this research that 74 from 100 respondents. Age between 18 to 21 years old are 21% with respondents. While, age groups between 26 until 29 years old are 5% with 5 respondents. Table-3. Race. Table 3 shows the respondent s race participated in this research. It shows that 91% of respondents are Malay, 5% from Chinese while Indian and others are 2%. From this research, the highest respondents that participated are Malay which is 91 respondents, while Chinese 5 respondents, Indian and Others are 2 respondents. 4

5 Table-4. Education Level. As we can see from the Table 4, it explains that the level of education among the respondent from IPTA in Malaysia. Almost all the respondents from Bachelor Degree which is 99% of respondents and only 1% from Master Degree. Table-5. University. Table 5 explains that, all the respondents are from university from IPTA in Malaysia and the researcher focus on the region which are central region (Selangor), Southern region (Melaka), Northen region (Kedah), East Coast region (Terengganu) and others. The respondents are from University Teknikal Malaysia Melaka (UTeM) 64%, University Kebangsaan Malaysia (UKM) 1%, University Utara Malaysia (UUM) 12%, University Sultan Zainal Abidin (UNISZA) 18% and Others University 5% from IPTA in Malaysia. Table-6. Respondents experience in Online Purchase. Table 6 shows the number of the respondents that have experience in buying online product. Based on the data collected, most of respondents have experience buying product from online which are 94% (94 respondents) say Yes and others 6% (6 respondents) say No from 100 respondents be collected. Table-6. Type of Product. Table 7 shows the respondent s type of product that they buy using online from internet. Mostly from the data that has collected, the respondents buying the apparels product and cosmetics & beauty product which are 39% and 35%. While the other product 14%, Digital product 8% and 4% buying books & novel. Table-8. Product Attribute. 5

6 As we can see from the Table 8, it explains that the first attribute that give attention to respondent to buy the product from an online purchase. 44% of respondent choose function of the product, 34% are benefits of the product, while only 22% choose features of the products. Table-9. Reliability Statistics Table 9 shows that the Cronbach s Alpha for the independent and dependent variables. The purpose of this test is to check whether the data obtained is reliable or not. From this research, it shows the result of the reliability statistics test for this research has been collected. As referred to the table, it shows that the value of Cronbach s Alpha result of this research for all variables is The values are acceptable because it s more than 0.5 which is a good result. According to (Dusick, 2012) the Cronbach s Alpha value that more than 0.7 is considered as reliable result. Table-10. Correlation. **Correlation is significant at the 0.01 level (2-tailed). X1 = Benefits of the Product X2 = Functions of the Product X3 = Features of the Product Y1 = Buyer Intention The table 10 shows the result analysis of the correlation between all the dependent variables and independent variables. The dependent variable in this research is buyer intention in online purchasing among IPTA Malaysia, while three independent variables involved that contributed to the dependent variables which are beneficial, function and feature of the product. From table 12 it shows that all three of independent variables have a significant relationship dependent variable. According to the Table 10, there is a significant relationship between benefits of a product and buyer intention in online purchasing among student IPTA in Malaysia. It is because the p value is equal to and less than alpha value The value of the correlation coefficient between benefits of a product and buyer intentions in online purchasing among student IPTA in Malaysia is It is in coefficient range between ±0.81 and ±1.00. It referred that a very strong relationship between benefit of the product and buyer intentions in online purchasing among student IPTA in Malaysia. Next, there is a significant relationship between the function of product and buyer intentions in online purchasing among student IPTA in Malaysia. Refer to the table 10; the p value is equal to and less than alpha value The value of the correlation coefficient between the function of a product and buyer intentions in online purchasing among student IPTA in Malaysia is It is in coefficient range between ±0.81 and ±1.00. It refers that very strong relationship between benefit of the product and buyer intentions in online purchasing among student IPTA in Malaysia. Lastly, there is a significant relationship between feature of the product and buyer intentions in online purchasing among student IPTA in Malaysia. As we can see in the Table 10, the p value is equal to and less than alpha value 6

7 0.05. The value of the correlation coefficient between the function of a product and buyer intentions in online purchasing among student IPTA in Malaysia is It is in coefficient range between ±0.61 and ±0.80. It referred that a strong relationship between benefit of the product and buyer intentions in online purchasing among student IPTA in Malaysia. Table-11. Model Summary. a. Predictors: (Constant), X3, X1, X2 Table 11 shows the model summary of Multiple Regression Analysis. The R value for this model summary is It means that the respondents are concerned about product attributes towards buyer intentions in online purchasing. The positive value of R represents a moderate relationship. The R² value of means 71.1% of the independent variables studied in, this contributes to the buyer intentions in online purchasing among student IPTA in Malaysia. It means that another 29.1% are caused by other factors that are not study in this research. Table-12. ANOVA a a. Dependent Variable: Y1 b. Predictors: (Constant), X3, X1, X2 Table 12 above shows the p value is and less than the alpha value The hypothesis for all independent variables are significantly explained it supported by the data will be accepted. Table-13. Coefficients a a. Dependent Variable: Y1 X1 = Benefits of the Product X2 = Functions of the Product X3 = Features of the Product Y1 = Buyer Intention Based on Table 13, coefficients show that benefits, functions and feature are significant to contribute the dependent variable (buyer intentions in online purchasing among student IPTA in Malaysia). This is because the p value is less than alpha value The relationship can be denoted as the following equation from the analysis from the table above: Buyer intentions = (Benefits of Product) (Functions of Product) (Features of Product) As refer to Table 13 Benefits of Product was found to contribute significant positive influence on buyer intentions in online purchasing (t = 3.113, p = 0.002, β = 0.364). When others variable is held constant, every one unit increase in benefit of the product will lead to increase in buyer intention in online purchasing by units. Next, based on Table 13 Functions of Product was found to contribute significant positive influence on buyer intentions in online purchasing (t = 2.964, p = 0.004, β = 0.356). When others variable is held constant, every one unit increase in benefit of the product will lead to increase in buyer intention in online purchasing by units. Lastly, as referred to Table 13 Features Of Product was found to contribute significant positive influence on buyer intentions in online purchasing (t = 2.303, p = 0.023, β = 0.188). When others variable is held constant, every one unit increase in benefit of the product will lead to increase in 7

8 buyer intention in online purchasing by units. As a conclusion, all the independent variable has positive relationship to buyer intentions in online purchasing among student IPTA in Malaysia. DISCUSSION This paper aims to shed light on the product attribute towards intentions in online purchasing.based on Tables, most of the out of 100 respondents, 85% respondents are female, while the balance 15% respondents are male. Most respondents for this research are aged around 22 to 25 years and the majority of the respondent s race are Malay and Bachelor Degree Holder. The majority of the respondents are from University IPTA in peninsular Malaysia which are from University Teknikal Malaysia Melaka (UTeM), University Kebangsaan Malaysia (UKM), University Utara Malaysia (UUM) 12%, University Sultan Zainal Abidin (UNISZA) and Others University from IPTA in Malaysia. From this research, majority have an experience purchase product by online and the type of product is apparels product and cosmetics and beauty product. From the reliability test, the independent variables which are benefits of product function of product and features of the product and also dependent variable is buyer intention in online purchasing are reliable. It is because the value of Cronbach s Alpha is more than 0.7 which is It means that all the variables are reliable to be used in this research. For Pearson Correlation Coefficients Test, all the dependent variable independent variables are used. The independent variables are significantly related to the dependent variable, which is Buyer Intentions in online purchasing among students IPTA in Malaysia. All show the positive relationships, but very strong and strong relationship between the independent variables and a dependent variable. Based on the Regression Analysis has been done, the R values for this research is R² value is 0.771, it indicates that 71.1% of the variables is contributed to the Buyer Intentions in online purchasing. The two independent variable shows the very strong relationship toward Buyer Intentions in online purchasing. However, one of independent variable which is Features of product show the strong relationship towards buyer intentions in online purchasing. Maybe it is because the respondent more attract to the benefits and functions of product in online purchasing and less intention to Features of product. In addition, the respondents especially from student IPTA less focus on Features of product and more interested to the Benefits and Functions of product. Table-14. Summary of Major Findings. Table 14 shows the Summary of Major Findings from the Hypotheses statement. It will be accepted if the significant value is less than IMPLICATION OF THE RESEARCH After the research has been done, this research helps online business in order to understand what online customer and focus on student IPTA give buyer intention about product attribute. Mostly online purchases from student, especially average teenager behaviour nowadays more attract to buy the product from online because of the attraction product that cannot find from the shop in a shopping mall. Besides this research also provide a better view about attribute of a product that some of the online seller forgot to focus on. This is because most of online focus only marketing, but not the product. As this research has been conducted, Benefits, Functions and Features of product give the positive result in order give intention to the customer to buy the product in online purchasing among student IPTA in Malaysia. LIMITATION OF THE RESEARCH During the research was conducted, there are some avoidable limitation to complete this research. The limitation in this research is limited to, student IPTA from University Teknikal Malaysia Melaka (UTeM), University Kebangsaan Malaysia (UKM), University Utara Malaysia (UUM) 12%, University Sultan Zainal Abidin (UNISZA) and Others University from IPTA in Malaysia. Other than that, there was limited time to collect the data about product attribute towards buyer intends in online purchasing among student IPTA in Malaysia, to provide a better data collection it takes a long time. Lastly, the limitation is only focus on the questionnaires survey only. It might be some of respondent do not 8

9 understand the questions asked and they just randomly answered the questions. The respondents might also have their own opinion about this topic. RECOMMENDATION FOR THE FUTURE RESEARCH As for the recommendation for this research is the questionnaires should be distributed to other age from children to older adult. This is because the data from different age will be different and help the online seller about what the attributes of a product they might focus and give their intention to buy the product. Besides, the research should include about the behaviour of customers to buy the product in online purchasing. This is because behaviour, customer is very important to know what product attribute that they prefer to give their intention to buy the product. Furthermore, if the researcher is interested in doing survey method in the future, the questions in the questionnaires should be simple and can understand by the respondent, so the respondents will answer based on their understanding and avoid a lot of questions because the respondents might not read the question and just answer randomly. Lastly, the better result of research is not enough only do the questionnaire survey because some of questionnaires are not given the real result and it's different when collect the data by using the interview. So, for suggestion for next research is better done two or more types of collecting data to get a better result. CONCLUSIONS This research is about product attributed towards buyer intends in online purchasing among student IPTA in Malaysia. Overall, it can be concluded that product attribute given the impact towards buyerintends in online purchasing among student IPTA in Malaysia. Online purchasing is the process of buying the product through the Internet. Nowadays, online purchasing is expended in Malaysia and from this research show 94% of respondents has experience in online purchase. Various approaches have been used in finding answers of objectives that stated in this research which, distributes questionnaires, as well as some of the methods used to analyse the data obtained, such as, validity and reliability analysis, correlation, multiple regression analysis and simple regression analysis. All data were obtained from a variety of backgrounds of respondents which are from students IPTA in Malaysia as decision maker. The data has been collected and analysed by using SPSS Finally, the finding sees that there is a significant relationship between the Buyer Intention (dependent variable) and the Benefits of product, Functions of product, and Features of product (independent variables). All the independent variables are significant relationship between the Buyer Intention (dependent variable) and the Benefits of product, Functions of product, and Features of product (independent variables). ACKNOWLEDGEMENT This work is supported by Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka. REFERENCE Azad, N., Rafiee, M., & Hamdavipour, L. (2012). The role of children's food packaging characteristics on parent's purchasing decision. Management Science Letters, 2(3), Alreck, P. and Settle, R. B., "Gender Effects on Internet, Catalogue and Store Shopping," Journal of Database Marketing Vol. 9, No. 2: , Anderson, D. R., Sweeney, D. J., & Williams, T. A. (2008). Statistics for Business and Economics. Cengage Learning Azad, N., & Hamdavipour, L. (2012). A study on effects of packaging characteristics on consumer's purchasing confidence. Management Science Letters, 2(1), Balabanis, G. and Diamantopoulos, A. (2004), Domestic country bias, country-of-origin effects, and consumer ethnocentrism: a multidimensional unfolding approach, Journal of the Academy of Marketing Science, Vol. 32 No. 1, pp Chryssochoidis, G., Krystallis, A., & Perreas, P. (2007). Ethnocentric beliefs and country-of-origin (COO) effect: Impact of country, product and product attributes on Greek consumers' evaluation of food products. European Journal of Marketing, 41(11/12), Casalo, L., Flavian, C., Guinalıu, M., The impact of participation in virtual brand communities on consumer trust and loyalty. The case of free software. Online Information Review 31 (6),

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