FACTORS INFLUENCING GENERATION Y'S ONLINE PURCHASE INTENTION TOWARD XYZ ONLINE STORE IN THAILAND
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FACTORS INFLUENCING GENERATION Y’S ONLINE PURCHASE
INTENTION TOWARD XYZ ONLINE STORE IN THAILAND
Tuangporn Kongprapunt1 and Nathaya Pupat2
Abstract: Electronic commerce is an essential tool and increasing growth in businesses, most
of businesses run their operations via an online. Online purchasing is a part of human life as
a providing more conveniences and efficiencies of a vendor and a consumer when people
compare to traditional purchasing. For generation Y has the high commitment in various
channels of purchasing and this generation perceived online shopping was more sage and
capable. This study aimed to determine factors influencing generation Y’s online purchase
intention toward XYZ online store in Thailand. The researcher collected 400 questionnaires,
all questionnaires were distributed in Thailand via Google form to respondents who are
intended to online purchase via XYZ online store in past 3 months and generation Y who ages
between 18-38 years old in 2018. The results of hypotheses testing showed that generation Y
considers quality, brand image, convenience, promotion and trust had a significant influence
to online purchase intention. Moreover, the result presented that trust has the strongest
significant influencing on online purchase intention. All variables are referred to XYZ Online
Store’s website including application
Keywords: Quality, Brand Image, Convenience, Promotion, Trust, Online Purchase Intention,
Online Store and Generation Y
INTRODUCTION The E-commerce landscape in
Thailand includes many businesses such as
Internet is a powerful tool of social online stores, logistics and payment & E-
dynamics and economic growths (Dalberg wallet. All of them are connected to
Survey Report, 2013) and electronic complete the online transactions.
commerce rapidly comes up with the Thailand has an increasing number
increase of fresh technologies and of E-commerce every year. In 2017, the
modernization. Nowadays, Internet uses value of Thai E-commerce was $2.9 billion
speedily increases the number of and expected growth rates will be 14.5%
information technologies and internet per year which will impact to market value
access. In 2018, there were 7.634 billion of to $5.8 billion in 2022 and $11.1 billion in
total population around the world and the 2025. In Thailand, the E-commerce is
internet users were 3.956 billion. divided into B2B, B2C, C2C and B2A.
From previous data we can see that However, Thailand E-commerce could not
every region continues to grow. The top be successful, if they are no great facilities
three of retail E-commerce sales are Asia- such as internet network, internet banks and
Pacific, China and Japan and the highest logistics because they work and support
proportion is Asia-Pacific, Its Asia’s each other.
estimated sales was around $1,892.07
billion in 2018 and it is growing faster than OBJECTIVES
others.
1.To study factors influence Generation Y’s
1MBA graduate at Assumption University, online purchase intention toward XYZ
Graduate School of Business Online Store
2Lecturer at Assumption University, Graduate 2.To examine the factor significant
School of Business
influencing Generation Y’s online purchase
intention toward XYZ Online Store
943.To find the most important factor that has Beauchamp and Ponder (2010)
a significant influence to Generation Y’s found the different point of convenience
online purchase intention toward XYZ between traditional store as an in-store and
Online Store. online store, access and search convenience
were the most convenient element on
LITERATURE REVIEW customers’ perception on online shopping.
Previous researchers studied that access
Quality convenience referred to consumers’
Gavin (1987) defined quality as convenient reach to products, shopping
user-based where products meet customers’ processes and stores (Jones et al., 2000;
expectation. This study refers to customers’ Seiders et al., 2000). Rishi (2010) formed
expectation in information quality which that convenience and accessibility were the
the information of accuracy, currency, main factors that stimulate consumers to do
completeness and format about goods and online purchase intention.
services on web site/application. Lee and
Shin (2014) presented that quality of Promotion
information had a positive influence to Promotion is one of marketing mix
online purchase intention. While other is an effective tool for the businesses and
quality will be service quality are as an sellers to use to communicate and persuade
important issue that consumers expected to their consumers to purchase the product by
receive from company service using promotion (Ehrman, 2011).
(SERVQUAL model). In this study, the Promotion is the technique that makes the
researcher focuses on responsiveness as products more attractive by a vendor by
service quality: 24 hours/ 7 days customer adding more special offers to buyers.
service and Frequently Asked Questions Rojuee and Rojuee (2017) referred when
(FAQs) that the way that online stores the business had the promotion on the
prompt responded and interacted to their goods and services, consumers would buy
consumers. Sun et al. (2015) found that e- in large quantities. Sun (2010) also showed
service has a significant influence to that promotion techniques had a significant
purchase intention. impact on purchase intention in online.
Brand image Trust
Brand is a specific name and Trust refers to reliability,
commercial symbol which are connected confidence and credibility and all are
with the meaning and characteristic of the important elements on e-commerce (Gao et
business. Consumers could identify and al., 2002). Brannigan and De Jager (2003)
distinguish the company name from other stated trust online transactions referred to
rivals when the brand are associated by trust in online vendor and trust in online
consumers’ memory (Aaker, 1991; Dobni trade. Pan and Chiou (2011) confirmed that
and Zinkhan, 1990; Keller, 1993; Okada when consumers purchased via online
and Reibstein, 1998). Moreover, the stores, trust has a significant part to online
researcher explained functional benefits, sellers. Lee et al. (2011) stated that the high
experimental benefits and symbolic level of trust has a positive influence to
benefits also referred to brand (Park et online purchase intention
al.,2010). The study of Yea (2013) also
confirmed that brand has a positive Online Purchase intention
significance on purchase intention. Hausman and Siekpe (2009) stated
that online purchase intention in E-
Convenience commerce is a key element that influence to
consumers would be actual purchasing in
95the future and other researchers emphasized information. For part 2-7, it was the
that online shopping intention played as a question for independent variables and
significant forecast for real purchasing dependent variable by using a 5 Point
behavior (Angela and Monika 2010, Kim Likert scale as a research technique. Lastly,
and lennon 2013, Arun and Xavier 2013). the part was personal information. The
Moreover, online shopping intention Cronbach’s alpha was conducted to test the
influenced on the demand of consumers to reliability of questionnaires. The research
buy the goods or service via online stores. technique that used to investigate five
The observation on online purchase hypotheses was Multiple Linear Regression
intention could be measured when (MLR).
consumers search and reach to a web site of
the company (Pavlou, 2003). Table 1: Summary of reliability of each variable
in research questionnaire (n=30)
RESEARCH HYPOTHESES Cronbac
Variable Questionnaire h
Alpha
H10: Quality has no significant influence on Quality Shopee’s website 0.729
online purchase intention and application
H1a: Quality has a significant influence on produce the most
online purchase intention current information
H20: Brand image has no significant The provided 0.788
information by
influence on online purchase intention Shopee website and
H2a: Brand image has a significant application is
influence on online purchase intention accurate
H30: Convenience has no significant I think Shopee 0.714
influence on online purchase intention gives prompt
services
H3a: Convenience has a significant I believe the 0.748
influence on online purchase intention Shopee is always
H40: Promotion has no significant willing to have a
influence on online purchase intention quick response to
H4a: Promotion has a significant influence customers
Brand Image If I buy 0.735
on online purchase intention products/services
H50: Trust has no significant influence on from online stores
online purchase intention that I am familiar
H5a: Trust has a significant influence on with, I would prefer
online purchase intention to buy from Shopee
as Shopee is well-
known online store
RESEARCH METHODOLOGY Once I find 0.831
products I like
The research method is quantitative through Shopee
research and a convenient sampling website/application
, I slick with the
approach is applied and snowball method is
brand
used in this research as my family, friends I would purchase 0.749
and co-workers forwarded my products and
questionnaire to their friends as well. The services from
target population was the people who had Shopee as Shopee
intended to purchase on XYZ Online Store online store is
attractive
in Thailand within past 3 months and aged Shopee online store 0.763
between 18-38 years old in 2018. The has a good
questionnaire consisted of 8 parts with 34 reputation in
questions. The first part was screening Thailand
96Cronbac Cronbac
Variable Questionnaire h Variable Questionnaire h
Alpha Alpha
Convenienc The website and 0.849 from Shopee, I
e application of would consider
Shopee is always purchasing this
accessible online store at the
I prefer to 0.870 price shown
purchasing process The high 0.795
from Shopee online probability that I
store would consider
I think I am able to 0.835 purchasing Shopee
shop efficiently My willingness to 0.681
through online purchase Shopee is
store of Shopee high
I believe I am able 0.813
to make my
The research showed the outcome (n=30) of
purchases
conveniently the reliability test by following alpha value
through online of five independent variables and the
store of Shopee dependent variable. Cronbach’s alpha of
Promotion I like to receive 0.813 quality was 0.796, brand image was 0.815,
Shopee promotions
convenience was 0.877, promotion was
through
advertisement 0.801, trust was 0.863 and online purchase
I like to receive 0.739 intention was 0.811. In this research, the
promotion discount researcher found that all of 6 variables were
for purchasing from reliable and consistent and questionnaires
Shopee were valid and reliable for using to setting
I like to receive 0.667
privilege for special
the research hypotheses.
items from Shopee
promotions Table 2: Summary results from hypothesis test by
I like to receive 0.786 using Multiple Regression
privilege for Rank Indepe
outdoor or travel from ndent
from Shopee stron and Level
Coeffi Implica
promotion gest Depend of
cient tions
Trust What Shopee says 0.835 to ent Signifi
(β)
about its products weak variabl cant
and services are est e
true Trust
I have a positive 0.823 has
attitude with Trust .000 signific
Shopee online store and ant
I believe Shopee 0.814 st online influenc
1
would be reliable purchas e on
Rank .370
I can trust the 0.831 e online
performance of intentio purchas
Shopee online store n e
to be good intentio
Online After reviewing the 0.786 n
purchase Shopee Promoti
Promoti
intention website/application on has
on and
, the likelihood of .000 signific
online
purchasing Shopee 2nd ant
purchas .176
is high Rank influenc
e
If I am going to 0.782 e on
intentio
purchase products online
n
purchas
97Rank Indepe brand image, convenience, promotion and
from ndent trust. VIF was the number between 1.008 to
stron and Level
gest Depend
Coeffi
of
Implica 1.489. And the results displayed the
cient tions variables of quality, brand Image,
to ent Signifi
(β) convenience, promotion and trust were not
weak variabl cant
est e standard error for regression
e model. For Coefficient, Trust has strongest
intentio
significant influence on online purchase
n
intention (Beta=.370), following by
Promotion (Beta=.176), Quality
Quality
has
(Beta=.149), Convenience (Beta=.136) and
Quality .002 signific Brand image has weakest significant
and ant influence on online purchase intention
online influenc (Beta=.086)
3rd
purchas e on
Rank .149
e online
intentio purchas CONCLUSION AND
n e RECOMMENDATIONS
intentio
n
Conveni Conclusion
ence has The researcher concluded the
Conveni
.003 signific results by following the highest of
ence
ant frequency and percentage. For gender is
and
influenc
4th online 67.5% or 270 respondents of female, marital
.136 e on
Rank purchas
e
online status which is Single status with 302
intentio
purchas respondents (75.5%), 159 respondents who
e
n age is 23-27 years old around 39.8%. In
intentio
n addition, the 118 respondents have their
Brand income 20,001-30,000 Baht/Month with
image
Brand .027 has 29.5%. Most of 122 respondents have spent
image signific approximately less than 1,000 Baht per
and ant month with 30.5%, 104 respondents (26%)
5th online influenc
.086 have intended to purchase about
Rank purchas e on
e online Health&Beauty. For education level at
intentio purchas Bachelor’s Degree was 70.3% or 281
n e
intentio respondents and lastly, 170 respondents
n work at Private company at 42.5%.
RESULTS AND DISCUSSION OF Table 3: Summary results of demographic
RESULTS factors in term of the highest frequency and
percentage
The research used Multiple Linear
Demogra Characteri Freque Percent
Regression to test five hypotheses. In this phic stic ncy )ƒ( age )%(
study, the value of adjust R square was Factor
0.412 or 41.2% and the researcher could Gender Female 270 67.5%
conclude that 41.2% of Generation Y’s
Marital Single 302 75.5%
online purchase intention toward XYZ status
online store was influenced by quality,
98Demogra Characteri Freque Percent Rank
Independe
phic stic ncy )ƒ( age )%( from Coefficie
nt and Implicatio
Factor stronge nt
Dependen ns
Age 23-27 years 159 39.8% st to (β)
t variable
old lowest
Income 20,001- 118 29.5% Quality
30,000 has
Quality
Baht/Mont significant
3rd and online
h influence
Rank purchase .149**
Online less than 122 30.5% on online
intention
shopping 1,000 Baht purchase
expense Baht/Mont intention
h Convenien
Convenien ce has
Product Health& 104 26% th ce and significant
4
category in Beauty online .136** influence
Rank
online purchase on online
shopping intention purchase
intention intention
Brand
Education Bachelor’s 281 70.3% Brand image has
level Degree th image and significant
5
online .086* influence
Rank
purchase on online
Occupatio Private 170 42.5% intention purchase
n company intention
employee Notes: *p < 0.05; **p < 0.01; *** p< 0.001
Recommendation
The researcher would recommend
The result of five hypotheses testing by XYZ managers to concentrated on all of
using Multiple Linear Regression analysis variables to build and stimulate the online
showed that Trust was the strongest purchase intention toward XYZ in the near
significant influence factor and following future. Trust was the key factor that the
by Promotion, Quality, Convenience and respondents concern with online purchase
Brand Image, respectively. intention then XYZ manager needs to
Table 4: The strength of influence between develop trust by keeping what about XYZ
independent variables and dependent variable announces to customers. All of XYZ
using Multiple Linear Regression purchased processes should be made the
Rank confidence for customers such as customer
Independe
from Coefficie information, payment and the way to
nt and Implicatio
stronge nt
st to
Dependen
(β)
ns receive the products because when
t variable consumers have more positive attitude and
lowest
Trust has relationship with XYZ and after that more
Trust and significant trust could be occurred. Promotion was the
online influence second influence factor then XYZ should
1st Rank .370***
purchase on online
intention purchase
concern about more advertising of online
intention and offline channels and offer the
Promotion marketing campaign about sales promotion.
Promotion
has Quality was the third influence factor then
nd significant XYZ manger should provide more updated
2 and online
influence
Rank purchase .176*** and clear information of goods and prices
on online
intention to customers. Convenience is the fourth
purchase
intention influence factor then XYZ manger should
develop and improve to Convenience by
99setting more reliable and available system Aaker, 1991; Yoo et al., 2000. Factors
for the purchased processes and making Affecting Purchase Intention of Online
XYZ website and application work 24 Game Prepayment Card-Evidence
hours per a day and 7 days per a week as the from Thailand, Journal of Internet
standard of online store. Brand Image is the Banking and Commerce, 18(3),
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well-known and good reputation by Aghekyan-Simonian et al. (2012). Effects
keeping the standard quality, meeting of customer brand perceptions on store
customer requirement and more promoting image and purchase intention: An
the brand as XYZ is the new online store in application in apparel clothing.
Thailand. Procedia - Social and Behavioral
Sciences 207 (2015), 196 – 205.
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For this research, the researcher Ajzen (1991). Consumer attitudes towards
concentrated on generation Y who had online shopping: The effects of trust,
intended online purchase in XYZ online perceived benefits, and perceived web
store in Thailand. Then the result could not quality. Internet Research, 25(5), 707-
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intention in other generations as the
researcher focused on people who age 18- Akinwande et al. (2015). Variance Inflation
38 years in 2018. The researcher would Factor: As a Condition for the
conduct the study by collection the data Inclusion of Suppressor Variable(s) in
from other generations and conduct the Regression Analysis (Vol. 05), No.07,
both of online and offline questionnaires. (2015).
Furthermore, the researcher only focused
on quality, brand image, convenience, Angela and Monika 2010, Kim and lennon
promotion and trust which were an 2013, Arun and Xavier 2013. Mapping
influence to dependent variable as online Online Buyer Behavior: A Critical
purchase intention. For next study, the Review of Empirical Studies (2001-
researcher would examine more potential 2014).
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