The Effects of Shopping directions, online reliance and previous online purchase Experience toward Customers' Online Purchase purpose

1. Introduction                                                                                                 

The development of the World Wide Web has resulted in the formation of a new form of retail e-tailing or web-shopping.The quick growth of the Internet technology has allowed Iranian consumers to buy services or products from the Web-retailers and look for product information from the Internet. Understanding and good consideration of the web Shoppers online buy Purpose, web-retailers will be able to expand successful and competent web-shopping strategies to get new and possible Web-shopping consumers. On the other hand, web-retailers can only suggest Certain ranges of Services and products to web-shoppers, as well as e-banking services, The Booking of airlines ticket,Technology devices, cosmetics, and clothing. Gilly and Wolfinbarger (2001) emphasize which web-shopping presents Different shopping experiences still when the same products are purchased.

Web shopping is supposed to full of risk and reliance and risk play important roles in online Business (Pavlou, 2003; Forsythe and Shi, 2003). Web-shopping activities do not essentially follow usual consumer Behaviour retailing environment, so Web marketers are gave an opinion to determine the determinants of customer online Buying purpose between the web shoppers. There are some models for evaluating web-shopper behaviour such as TAM (Technology acceptance models) (Davis, and Warshaw, 1989) and OPIN (online pre-purchase intentions) that (Shim Eastlick, and Warrington, 2001) have emerged in the in existence creative writing. Forsythe and Shi (2003) disagree that Web shopping is supposed to full of risk than brick Retailing business. While Consumer behaviour is cultural-specific, it is Vague whether the stated findings of the Consumer Online buying purpose in the Western countries can be honestly practical in a cross-cultural Context such as in IRAN mostly among Generation Y (teenagers Of the day).

As a result, a Gap is created in this Study. So, my study goals evaluate the impacts of shopping orientations, online Trust and prior online Purchase intention on the customer online purchase intentions in Iran, particularly among Generation.

2. Literature review:

 2.1 Internet payment

Derived from the research did by Maddox and Gong (2005), usage of internet and the Internet market dispersion rate has improved considerably in Asia area. In accordance with the Iran Internet Usage, speed limitation, and Telecommunication information (reclaim from http://www.internetworldstats.com/asia), the figure of Internet users and buyers have enlarged from 2.1 million in year 2005 to close to 6 million in year 2010. As a result, there is a sight of positive growth in the Internet payment and Internet purchase in Iran. Taking into consideration which web shopping is at the growth stage in Iran, not large amount information is famous about consumer feelings toward web shopping and features which have an effect on customer online buy intention in the web-shopping atmosphere. So, it is critical to recognize the determinants of consumer online buy intention in the web-shopping environment in Iran situation.

2.2 Web-Shopping

Nowadays with increasing more and more knowledge and technology, development in the Internet knowledge and technology has made easy the expansion of in-home shopping (Lumpkin & Hawes, 1985). Shim, Quereshi and Siegel (2000) stated web shopping like the procedure consumers go during to buy Products or services over the Internet. The conditions online-shop, Internet-shop, web-shop and online-store are used exchangeable in the existing literature. Web shopping is an e-commerce system used by shoppers in the position of business-to-consumer (B2C) or business-to-business (B2B).  

From the consumer's point of view, web shopping allows web shopper to look for and evaluate different product or service options from different online stores that are situated in different parts of the world. The interactive nature of the Internet offers opportunities for consumers to use the web shopping facilities efficiently by getting better the accessibility of product information, enabling direct multi attribute comparison, and dropping potential buyers' information search costs (Alba, et. al., 1997). The Internet can also give benefits to companies. Since consumers are more and more using the Internet as a shopping move towards in the stage their buying activities, companies can get this chance to use the Internet as a medium to attract and maintain current and potential customers. In this vein, online retailers must understand consumers' observations of website description and their online shopping behaviour. Therefore, the research will try to discover the idea of customer online buy intention and the forerunner relationship of shopping directions, online reliance and previous online buy experience and knowledge on customer online buy purpose.

2.3 Customer Online Purchase Intention

Consumer behaviour is the fundamental of doing each business. Understanding the Customer online buying intention was one of the serious research areas in the existing literature. Customer online purchase intention in the web-shopping environment will verify the power of a consumer's purpose to do a specific purchasing behaviour by means of the Internet (Salisbury, Pearson, Pearson and Miller, 2001).Additionally, the hypothesis of reasoned action recommended which consumer behaviour can be forecasted from intentions which communicate directly in conditions of action, target and background to that consumer behaviour (Ajzen and Fishbein, 1980).

According to Day (1969), the planned processes can be more helpful than behavioural measures to arrest customer's intelligence as customer might make purchases because of limitations rather than real favourite when purchase is measured.  Purchase purpose can be categorized seeing that one of the factors of consumer cognitive behaviour on how an individual means to pay money for a specific brand. Kim and Zhou, Laroche (1996) stated which variables for example consideration in buying a brand and expectation to buy a brand can be used to measure consumer purchase intention. Based on the argument of Pavlou (2003), online purchase purpose is the situation when a customer is willing and intends to become involved in online transaction. Online dealings can be considered as an activity in which the process of information recovery, information transfer, and product purchase are occurred (Pavlou, 2003). The information recovery and replace steps are regarded as purposes to make use of a web site; however, product purchase is more appropriate to an intention to manage a web-site (Pavlou, 2003). As a result, it is critical to assess the idea of online purchase intention in my study. To generate customer online purchase intention, web retailers have to seem at the impact of shopping directions on the customer online purchase intention.

2.4 Shopping directions

Brown, Pope and Voges (2001) describe shopping orientations as related to general tendency toward the acts of shopping. This tendency may be established in diverse forms such as information search, option assessment, and product collection. Li, Kuo and Russell (1999) conceptualized the concept of shopping directions as a specific section of lifestyle and operationalised by a variety of activities, interests and view announcements which are appropriate to the acts of shopping. With the appearance of online shopping activities, customers' online shopping behaviour may be different in terms of their shopping orientations. Swaminathan, Lepkowska-White and Rao (1999) recommend that shopping orientations is one of the important indicators of making online purchase. Derived from the relationship study between shopping orientations and online shopping orientation, Vijayasarathy and Jones (2000) identify seven types of shopping orientations, for example in-home shoppers who liked to shop from home; economic shoppers who With the appearance of online shopping activities, consumers' online shopping behaviour may be diverse in conditions of shopping directions. Swaminathan, Lepkowska-White and Rao (1999) suggest that shopping directions is one of the significant pointers of making online purchase. Founded on the relationship study between shopping directions and online shopping directions, Vijayasarathy and Jones (2000) recognize seven types of shopping orientations, such as in-home shoppers who liked to shop from home; economic shoppers who shopped approximately before making purchase decisions; mall shoppers who favoured to shop at shopping centres; modified shoppers who liked to shop anywhere they knew the sales force; moral shoppers who liked to shop in local stores to encourage the centre of population; ease shoppers who placed a first-class on ease when shopping; and excited shoppers who enjoyed shopping.

As the result of the study, it was found that customers who wish traditional in-home shopping, such as by mail order by means of catalogs, be inclined to show high intentions toward online shopping, while individuals with a favourite for mall shopping tended to have low online shopping purposes.  In the appearance of diverse retail passages and increasing competition in the market, online retailers must appreciate customers' shopping directions to take full advantage of customers' online purchase intention that leads to the increase in online sales. Some researchers have demonstrated that shopping directions have important effect on consumers' online buying intention (Vijayasa; 2002; Brown, et.al. 2001; Seock, 2003; Gehrt, Onzo, Fujita and Rajan, 2007). Shopping instructions is regarded as a Multi-dimensional construct. In accordance with Gehrt, ET. al. (2007), there is 7 types of shopping directions that include exercise, novelty, impulse purchase, quality, brand, price, and convenience. However, the present research will only discover three types of shopping direction that includes desire buying direction, quality direction, and brand direction. Therefore, desirable purchase direction, quality direction, and brand direction will be grouped under the grouping of shopping directions. Both of them with online reliance and previous online purchase experience will be tested as the independent variables for customer online buying purpose.

2.5 Impulse Purchase direction

Given the incomplete growth of the digital economy and the shopping ease being delivered throughout digitalized exchanges, one might reason that more impulse individuals may be more prone to online shopping. The study from Zhang, Prybutok and Strutton (2007) bring to a close which desire purchase is positively related to the customer online buy purpose.

2.6 Quality Orientation

It Shows concern for all aspects of the job; checks processes and tasks for accuracy; seeks out opportunities for improving processes, or products. In the context of web-shopping environment, Gehrt, et al. (2007) discovered that customers from the shopping enjoyment section are positively inclined toward recreation, quality, and desire orientations when making online purchase.

 2.7 Brand Orientation

A brand is definite as a name or symbol, brand and package plan that exceptionally recognizes the products or services of a retailer, and differentiates them from those of its competitors. In the virtual market, a corporate brand characteristics is a cognitive secure and a point of detection anywhere customers. Observe very much of uncertainty (Rajshekhar, Radulovich, Pendleton and Scherer, 2005). Most of the online retailers, the brand name is the company name. In the e-commerce environment, trusted corporate and brand names are used by customers as substitutes for product information when they intent to make online purchase

(Ward and Lee, 2000).). A strong brand name not only attracts and gets new customers, but also has the surround ability to make customers feel relaxing with their purchase decisions. As far as i know, one study did by Jayawardhena, Wright and Dennis (2007) terminates that brand direction is completely related to the customer online purchase meaning.

2.8 Online Trust

Kimery and McCard (2002) describe reliance as customers' eagerness to recognize fault in an online business based on their positive prospect concerning future online store behaviour. In accordance with reliance is a prospect about individuals' behaviour surrounded by the society anywhere they are living or by that they are ruled. Reliance can be gave a person, an object (product), an organization (a business), an establishment (the government) or a role (a professional of some kind).  Reliance plays a key role in making pleased and accepted results in online business (Pavlou, 2003; Yousafzai, Pallister, and Foxall, 2003; Geffen and Straub, 2004; Wu and Cheng, 2005; Flavian and Guinaliu, 2006).In accordance with the McCole and Palmer (2001), online purchasing require online customer reliance. Egger (2006) discusses which enough reliance needs to live when placing an order online and when the customer gives in his or her financial information and other personal data in responsibility financial business. Geffen (2000) stated that the in attendance of reliance will increase the consumers' confidence which the e-retailers will not connect in entrepreneur behaviour. It has been confirmed in the existing literature that reliance beliefs positively power customer online purchase purpose (Verhagen, Meents, and Tan, 2006; Verhagen, Tan and Meents, 2004; McKnight, Chaudhury and Kacmar, 2002; Lim, Sia, Lee and Benbasat, 2001; Jarvenpaa, Tractinsky). Jarvenpaa and Tractinsky (1999) and Gefen and Straub (2004) bring to a close that the higher the degrees of consumers' reliance, the better degree of consumers' purchase purposes of consumers. Proportions of online reliance include safety, privacy and reliability (Camp, 2001).  Security is specific as the amount to which customer's reliance that the Internet is protected for them to broadcast responsive information to the business (Kim and Shim, 2002).

Security plays a vital role in affecting the consumer attitudes and purchase purposes (Salisbury, et. al., 2001) since the present of supposed risk in broadcasting  responsive information for example credit card numbers across the Internet (Janda, Trocchia, and Gwinner, 2002). Ernst and Young in 2001) advised that consumers may sense painful to release their personal information such as credit card and social security number during Internet because the consumers can not actually verify the quality of the products or control the safety and security of sending sensitive personal and financial information as shopping on the internet. Kim and Shim (2002) put emphasis on the personal responsiveness of safety has the important influence on consumer attitudes and online purchase purpose. Hen and Barnes (2007) define privacy as the consumers' trust about the performance of other party in the environment during the market business or consumption behaviour.

Lee and Turban (2001) argue that high level of security and privacy in the online shopping experience has a positive effect on consumer reliance because of the perceived risk concerned in the information replace. Furthermore, company steadiness can control the consumers' online reliance and purchase purpose (Balasubramanian, Konana, and Menon, 2003; Koufaris and Hampton-Sosa, 2004Level of security and privacy in the online shopping experience has a positive effect on consumer reliance because of the perceived risk involved in the information replace. In addition, company reliability can influence the consumers' online trust and purchase intention (Balasubramanian, Konana, and Menon, 2003; Koufaris and Hampton-Sosa, 2004). In the web-shopping environment, most consumers suppose that the large companies have better ability to increase their online trust (Koufaris and Hampton-Sosa, 2004). ). In the web-shopping environment, most of the consumer supposes which the large companies have better knowledge, skills, and ability to enlarge their online trust (Koufaris and Hampton-Sosa, 2004.

2.9 Prior Online Purchase Experience

Web shopping is a relatively new activity for an extensive range of consumers, online purchases are still perceived as riskier than global ones (Laroche, Yang, McDougall and Bergeron, 2005). So, web-shopping consumers will depend heavily on experience quality in which the experience quality can be obtained just through previous purchase experience.  Previous experiences will strongly affect future behaviour. In the web-shopping context, customers evaluate their Online purchase experiences in terms of perceptions regarding product information, form of payment, delivery terms, service offered, risk involved, privacy, security, personalization, visual appeal, map-reading, amusement and pleasure (Burke, 2002; Parasuraman and Zinkhan, 2002; Mathwick, Malhotra, and Rigdon, 2001).

Derived from the huge existing literature, it can be concluded that customer's online purchase experience will have a important effect on his or her future purchase intention for online shopping (Shim et al., 2001; So et al., 2005; Brown, et. al., 2001; Lynch and Ariely, 2000). In accordance with Elliot and Fowell (2000), customer experience with the Internet forces the growth of Internet shopping. Customers will just purchase product from the Internet after they have previously experienced them. Additionally, customers who have previous online purchase experience will be more likely to purchase through online than those who lack such experience. Seckler (2000) explains this fact that as individual gain experience with web-shopping, maybe with small purchases at first, they will be more probable to develop self-assurance and skills that make easy more motivated buying through the Internet. If these past experiences are approximated negatively, customers will be unwilling to connect in online shopping in the future.

2.10 Hypotheses

        There are five hypotheses:

H1:  Desire purchase direction is positively related to customer online buying purpose.  

H2:  Quality direction is positively related to customer online buying purpose.

H3:  Brand direction is positively related to customer online buying purpose.

H4:  Online reliance is positively related to the customer online buying purpose.

3. Methodology

3.1 Research Design

My research designed by chooses of 100 persons from my classmates that they live in IRAN. Positive approaches were accepted in this research because of this method authorized me to look for realities of the examination by empirical confirmation by means of the hypothetical-deductive means (Jankowicz, 2005). Additionally, descriptive research plan was adopted as the study has obvious problem statements, particular hypotheses and detailed body of knowledge (Malhotra, 2004).

3.2 Questionnaire Design

I designed the first part (Part A) of my questionnaire with request general information about the online purchasing behaviour of the potential respondents that are nine questions. The second part of my questionnaire that there are eleven questions determined the independent variables and dependent variable that would be tested in my survey. The items of the questionnaire in this research were adopted from different sources of the existing literature that I said in the past. The items for the independent variables "desire purchase direction", "quality direction", and "brand direction" are adapted from Gehrt, ET. al. (2007) and Seock (2003). The items for the independent variable are "online reliance" are adapted from Chen and Barnes (2007). The items for the independent variable "previous online purchase purpose" are adapted from Brunelle and Lapierre (2008). The items for the dependent variable "online Purchase purpose" are adapted from Chen and Barnes (2007). Respondents could answer my questionnaires based on 5-point Likert    scale anchored by "strongly agree" (1) to "strongly disagree" (5) was used as the manner dimension for the independent and dependent variables.

 3.3 Sampling

The targeted sample size was 100 and ease example method was used to choose potential respondents in my survey. Convenience sampling technique was adopted because my research seems for cross-cultural dissimilarities in consumer behaviour (i.e., customer online purchase purpose).Zikmund, Babin, Carr and Griffin, in 2010 and "convenience samples are best used for investigative research when additional research as a result will be conducted with a opportunity sample" (Zikmund, et al., 2010, p.396;

Sekaran and Bougie, 2010).My study focused on Generation Y, the target people covered all of my friends that they are student. Students registered in Azad Islamic University and the example part incorporated all the present full-time student information technology students in Azad Islamic University. All of these postgraduate students are born among 1985 and 1989.

Respondents were educated to answer the questions based on their most current online purchase experience with one of the

 Web-retailer by means of the Internet. 

3.4 Management of Survey

Self-managed survey technique in the form of my deliver surveys technique was used to make sure the privacy and non-requirement features of contributing in the investigation. My investigation was conducted in virtual communication such as face book, yahoo, Gmail where my friends could revisit the questionnaires without delay into the box assigned. The intentional character of the contribution was explained orally in addition to being indicated in the investigation questionnaire. Students were invited to complete an unspecified survey questionnaire that took approximately 18 minutes of their time to finish. A total of 100 sets of questionnaires were distributed with internet tools such as face book, yahoo messenger, Gmail and 100 questionnaires were sent to me.

4. Research Results

4.1 Respondents' Demographic Profile and Online Purchasing Behaviour

According to my survey, female respondents represented 41 percent of the total respondents while male respondents 59 percent. SO the majority of respondents are male In the case of age distribution, the majority of the respondents were between the ages of 22 to 26. In terms of ethnic compositions, the respondents were mainly Iranian ethnic group. Based on my survey; all of respondents have the experience of buying products and services by means of the online mode. On other hand 6% of respondents are 58 and more than 58 years old, 16% between 26 till 36, 30% between 47 till 57, and 31 % are between 20 till 25. 36% of respondents are bachelor and 39% of them have master degree .% 25 are PhD. % 24 of respondent didn't have any job therefore they had not any income.! less than $ 500 and % 23 of them between $ 501 till $ 1000and 1 of them more than $. According to of respondents have personal computer and just %3 of respondents have not personal computer. h of respondents have experience to buying online before this survey and 2 of respondents have not any online shopping experience.

4.2 F-factor & variances & KMO

Factor analysis has been employed to search the fundamental factors associated with 8 items by using major Component Analysis (PCA). Bartlett's Test of Sphericity was useful to the constructs strength and validity. As a result, again the Kaiser–Mayer– Olkin evaluate of sampling sufficiency employed to analyze the power of association among variables. The Kaiser–Mayer–Olkin measures of sampling sufficiency (KMO) was first computed to decide the appropriateness of using factor analysis to predict whether data are suitable to perform factor analysis of not. Generally, KMO is used to assess which variables need to drop from the model due to multicollinearity. The value of KMO varies from 0 to 1, and KMO overall should be .60 or higher to perform factor

analysis. If not then it is necessary to drop the variables with lowest anti image value until KMO overall rise above .60. Result for the Bartlett's Test of Sphericity and the KMO reveal that both were highly significant and concluded that this variable was suitable for the factor analysis .It is difficult to take decision regarding the number of factors could retains but the results of initial runs based on eignenvalues showed 4 factors. According to Hair et al. (1992) minimum loading necessary to include an item in its respective constructs. They also suggested that variables with loading greater than 0.30 is considered significant, loading greater than 0.40 more important, and loading 0.50 or greater are very significant. In this study, the general criteria were accepted items with loading of 0.60 or greater. Not a single factor had been dropped out under this circumstance .In this survey the KMO is 0.436.

The values of Table Total Variance Explained which one put it on index indicate the affiliation of the items to a factor.

Generally, the factor is the natural affinity of an item for a group. The higher loading (factor) indicates the stronger affiliation of an item to a specific factor. The findings of this study indicate that each of the four dimensions (Desire purchase direction and brand direction, quality direction, online reliance) was consistently loaded to the different factors. That means each of the four dimensions that loaded into four different factors all are related for online shopping.

 Findings:

1. From the scatter plot, a positive association the Effects of Shopping directions, online reliance and previous online buy Experience toward Customers' Online Purchase purpose:

Acceptance of internet shopping:

2. The max correlation coefficient, r = 0.897, which is more than 0.3.

3. The F-value from ANOVA table 7.835 is and the degrees of freedom are 5 and 236.

4. The probability of Type I error or the p-value is less than 0.001.

5. The coefficient of determination, R2 is 0.89.

        6. The regression equation: between Attitudes toward ONLINE SHOPING = -8.642 +0.363*(desire purchase direction)    +0.301*(brand direction).

For every one unit increase in Attitudes toward ONLINE SHOPING, desire purchase direction is expected to be higher by 0.355units and also increase 0.294 unit of brand direction.

Diagnostics

• The case wise diagnostics procedure did not detect any outliers.

• In the residual plot, all the points fall within ±3 and are scattered randomly.

• The test of normality indicates that the residual can be assumed to be normal.

Objectives:

It has been shown that there is a The Effects of Shopping directions, online reliance and previous online buy Experience toward Customers' Online Purchase purpose.

  5. Conclusion

5.1 Implications of the Research

In order to increase the customer impulse purchase, e-retailers can provide e-mail updates on product development or offer special discounts for a limited time to the potential online customers. E-retailers may offer loyalty programmes or club memberships for those online customers who exhibit strong brand orientation. For targeting quality-orientated customers, e-retailers can provide full online version of product quality information and product search information through the website to them. In order to increase the level of online trust, e-retailers must provide honest and trustworthy information to the potential web shoppers at all time. Every problem is money maker. All of the consumers are target price. Market is very comparative and sensitive. Globalization depends to political, consumer, market, legal and economic. Data is structure of business. Reality of research is important. Limitations to global marketing are cultural and political constraints, confirm to culture value system and national boundaries have begun their significance both as a psychological and physical barrier to international business. People believe on what they think. Satisfaction level is with understanding the real market, create innovation, packaging, keep on adding innovation and understanding the power of the technology. Nowadays, in global marketing we can consider with advance technology, high knowledge of consumer, consumer demand and keeping on consumer expectation. Today, failing in business depend to expectation of consumer. Meet the expectation is important in global marketing.Undrestanding consumer demand is important for making profit. When there is satisfaction, there is market. It seems reasonable to conclude that Market Globalization Drivers: Common Customer Needs, Global Customers and Channels, negotiable marketing, guide Countries. It is more important to do what is strategically right and what is immediately profitable. Global marketing is the growing convergence of consumer needs; Basic principle of internet shopping and marketing in every country is biggest challenges in globalization. Benefits of global marketing and internet shopping involve cost reduction, improved quality of products and programs, enhanced customer preference and increase competitive advantaged. Global marketing include standardization efforts, coordination across markets and global integration. Challenge is create value in global marketing. Quality is expectation in global marketing. In global marketing, we try to create problem. The investigation of findings has carried administrative suggestions to the different stakeholders. In conditions of administrative inference, the research findings do provide some insights and feedbacks for the e-retailers to put together and apply different business strategies to enhance the customer online buy purpose. The investigate decision exposed which the qualifications of the customer online purchase purpose could be applied in both low insecurity prevention countries and high ambiguity prevention countries mainly in Iran. There is mainly between Generation Y. In order to generate the situation used for previous online buying skill, e-retailers can give free of charge samples or free payment for the possible web shoppers to analysis the products or services. In order to increase the customer desire purchase, E-retailers can provide e-mail updates on product development or offer special discounts for a limited time to the potential online customers. E-retailers may offer loyalty programmes or club memberships for those online customers who exhibit strong brand orientation. For targeting quality-orientated customers, e-retailers can provide full online version of product quality information and product search information through the website to them. To increase the level of online trust, e-retailers must provide honest and trustworthy information to the potential web shoppers at all time.