The importance of business success is understanding customers’ needs and wants from products or services in order to capture them. Furthermore, understanding customers lead the company to expand its market share which will be increasing the profits. Due to the rapid growth of the internet and its use as a channel for shopping. Hence, the internet will be involved more and more in doing business (Solomon et al., 2010). According to a recent online survey conducted by Malaysia Communications and Multimedia Commission (2017), the internet user in Malaysia increased in 2017 as compared to previous years. The number of Malaysian using internet rose to 76.9%, there were 24.5 million people out of a total population. The numbers of the internet users are related to the number of online shoppers informed by Wong and Sculli (2005). The CMCM survey (2017) showed 48.8% of internet users participated in online market place as consumers. As a result, a study showed that the e- commerce spending behavior of online users show a newly adopted trend among consumers who stay in the Villa Putra Condominium.
The internet makes people life simple and innovative which helps both customers and companies become more easy and fast for doing the business transaction (Barry Silverstenin, 2002). Many companies and organizations are providing the online shopping platforms to convince and comfort their customers. Nowadays, the competition in the market is continually higher. Therefore, online shops must offer online activities that are accepted by customers. If the level of intention to buy among consumers is high, the level of purchase is in the same way (Brown et al., 2003). However, customers’ intention who shop online and physical store are influenced by different factors. Online customers do not have the limit time and place for shopping through internet.
Customers are able to use internet shopping platform for comparison of prices, design, or searching information about goods or services and making a payment with online shops. These features can impact on customers’ purchase decision (Rordriguz, 2009). There are factors including perceived usefulness, perceived ease of use, and perceived risk which influenced the customers’ intention to purchase products or services online. Thus, the online shops who do not provide an appropriate quality of online management systems, it is very difficult to satisfy customers (Cox & Dale, 2001). Satisfaction in online system relates to customers’ experiences of using the platform (Lee & Lin, 2005).
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According to Ha & Stoel study in 2012, stated customers who have a bad online shopping experience can be effect negatively to intention to buy with the online shops. Therefore, customers’ satisfaction is an important role to run and grow online businesses. Internet users have been continually growing in Malaysia as compared to previous years and the retailing consists very large market share of total online sales (CMCM, 2017). Many traditional sellers have realized that internet will become the strong marketing channel and these seem more to grow in term of market size in the future. As the result, many physical retail stores have risen their market by providing the internet shopping to take advantage of high demand for online shopping availability (Yaser, 2013). when companies or traditional sellers process in e-commerce, they also can gain customer value and attract new customers through value creating the online shopping.
In order to produce customer value growth, there is a sign for the companies or sellers to understand factors that affect the customers’ online buying intention because it can be used as a predictor of actual purchase (Shirin & Clara, 2015). Online customers have high expectation and high standard of online service quality. Customers expect better shopping experience as compared to physical stores. According to Davis (1989), perceived usefulness is defined as customers’ perception towards the outcome experience. A study of Renny, Suryo, Hotniar (2013), revealed that the individual’s perception of using the new technology for purchasing should improve the performance including fast, time saving, effort saving, and cost saving. Hence, it can affect to customers’ intention to purchase products or services online by online platform usefulness. The online shopping purchase consists of searching for the websites, browsing websites, searching for the products, examine for the products, evaluating and comparing, temporary purchase, payment, receiving and checking, and products accepted or returned which stated by Hui Ming Kuo, Sheue Ling Hwan, and Eric (2004). This is involvement of money and personal information during payment method and delivery process.
Therefore, online customers always concern about risk in terms of privacy of the websites to protect their personal information and security of making payment for buying products through the internet. Thus, perceived risk also influences on consumers’ shopping intention (Chong Hui Teing, 2014). According to Im and Ha (2011), purchasing intention considers is an important variable that used as a strong predictor of future behavior of consumers. Thus, research needs to the understanding of the factors which are perceived of usefulness, perceived risk, and perceived ease of use that related to e-commerce and customer’s online buying intention. In order that companies are able to improve shopping productivity, shopping performance and satisfy their customers (Wanida, 2014).
In online shopping retailers’ point of view, an in-depth understanding those important factors are providing positive contribution to retailers themselves. Firstly, they can receive the useful information to develop their marketing channels such as online shopping website, in order to satisfy their customers’ needs and want when shopping online. Secondly, they can use the knowledge from this study to improve and innovate an online marketing strategy. As the result of successful marketing strategy, the companies or online retailers are able to improve of competitive advantages which lead to increase marketing shares and business profitability. From the customers’ perspective, customers are able to receive more awareness from marketers and shop retailers in terms of more privacy and security, well-design online shop, and better customer services. Hence, customers will feel more comfortable and enjoyable when purchasing online. Meanwhile, they also fell secure of making payment transactions.
In conclusion, this research focused on the factors of e-commerce that influencing online costumers purchase intention. This chapter basically provide a general overview of the entire chapter and research. Therefore, this chapter will serve as reference and guidelines for the further investigations in the following chapters.
