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Consumers Online Search and Purchase
Behaviour & the Utility of Recommendation
Agents in Pakistan
Syeda Sara Tazeen Jaffer
Department of Finance, College of Business Management, Institute of Business Management,
Karachi, Pakistan
[std_6349@iobm.edu.pk, saratazeen@gmail.com, 0321-2570366]
Khadija Reza
Department of Marketing, College of Business Management, Institute of Business Management,
Karachi, Pakistan[std_5926@iobm.edu.pk, khadijay@gmail.com, 0333-2142144]
Plagiarism detected through Turnitin = 5%
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Consumers Online Search and Purchase
Behaviour & the Utility of Recommendation
Agents in Pakistan
Syeda Sara Tazeen Jaffer
Department of Finance, College of Business Management, Institute of Business Management,
Karachi, Pakistan
Khadija Reza
Department of Marketing, College of Business Management, Institute of Business Management,
Karachi, Pakistan
Keywords: Recommendation Agents, Online Shopping, Online Search, Online Purchase Behaviour, E-
commerce, Consumer Behaviour
E-commerce has brought a vast amount of opportunities for the
establishment of different channels for business-customer interaction and
avenues for sales. The fact that, purchase empowerment is now just a click
away has emboldened businesses to provide ease of purchase and home
delivery services to their consumers on the web. These interactions between
consumers and organisations may arise from search for information
regarding the organisation/product, social networking websites, purchase
This paper is about consumers online search and
purchase behaviour in Pakistan encompassing 350
participants. Since the trend is towards consumers
shifting to online research and shopping. Thus severe
competition lies in the field of E-commerce for all existing
business and new entrants. Due to which the consumers
get overloaded with information causing confusion and
frustration. The aim of this paper is to find out the utility
of a recommendation agents in Pakistan. The
recommendation agent will take the consumers product
requirement details/preferences and pick out the most
suitable options for the consumer out of the companys
complete product suite. This will help the consumer with
their search by short listing the products for them as per
their preferences making the actual purchase decision
less complicated.
Abstract
Introduction
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intention or participation in a
Mobile phones
fast access to o
on providing th
becoming a fast
Hair and Clark
available towar
interesting and
the actual buyin
further provides afresh, the
on OCE. It helps in the rec
consequences of the OCE and
Rose, Hair and Clark 2010
activities of Online search a
trust of the online environme
Comparison of the traditional face-to-face
Personal contact H
Information Provision V
Time Period for interactions
Brand Presentation R
between an online and offlin
pertaining to the degree of
enables decimation of very d
whereby many visual, audio
availability of purchase whe
internet cafe. The interaction
of the organization wherea
compared to the experience
Extracted from Rose, Hair and Clark 2010
Extract from Rose, Hair and Clark 2010 Int
ANTECEDENTS
1. InformationProcessing
2. Perceived ease ofuse
3. Perceived
usefulness
4. Perceived Benefits
5. Perceived Control
6. Skill
7. Trust Propensity
8. Perceived Risk
9. Enjoyment
EXPERIEN
1. Cognitiv
2. Affectiv
LiteratureR
eview
ny other online pursuits.
have taken us a step further by providing
ganizations via internet. Most organization
ir products to consumers through different
trend in the sub continent to have this acce
2010). It further provides a review on
ds understanding of the different causes
effective Online Consumer Experience (OC
g experience and everything related in that
nderstanding towards eventual impact dif
gnition of the antecedents leading to OC
leads towards developing a framework for
further discuss measuring website perfor
d purchase, considering factors like intern
nt, risk of online buying and perception of c
erses the online customer contexts
ffline Context Online Co
igh to Medium Low
aries in intensity over different media Intensive
ictated by the organization Dictated b
anywhere.
ange of tangible devices used to present the brand Audio-visu
The
kee
e customer experience, the main point of
personal contact. The online context of cu
etailed information which may be lacking in
r paper aids may be required. Another fac
rever you are, in the confines of your h
of the brand with the consumer is rather li
s no such limitation exists online. Howe
hat a consumer may have while feeling theit, a factor
missing in t
The paper
positive O
customer
repurchase
and the
through b
website
International Journal of Management Review 2010
ernational Journal of Management Review 2010
E
e State
State
CONSEQUENCE
1. Customer
Satisfaction
CONSEQUENCE
1. RepurchaseIntention
Page 3 of 16
n even easier and
today are focused
web apps and it is
ss on the go (Rose,
ifferent literature
and effects of an
E) keeping in view
context. The paper
erent factors have
, followed by the
uture testing.
ance and linking
et experience and
stomer services.
text
the customer. Anytime,
al
extract gives a
comparison
hich is the factor
stomer experience
an offline context,
tor is the ease and
me or a crowded
ited to the timings
ver, it cannot be
product or testinghat is distinctively
e online context.
concludes that a
CE will lead to
satisfaction and
from a website
way forward is
etter and easy
navigation,
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development of OCE literature consistently with technological developments.
Keeping in view the study on OCE, we now review in detail the Decision Making process for
the consumer through the Engel-Kollat-Blackwell (EKB)modelwhich discusses the five-stage
core processes including problem recognition, search, alternative evaluation, purchase
choice and outcomes. There are many external and internal factors that affect the decision
making process such as socio-economic factors, online atmosphere and environment,
individual and cultural factors. The model adapted from the EKB model and formulated by
Darley, Blankson and Luthege 2010 is appended for better understanding. The focus of the
article has remained on external search, behavioural intentions, individual and online
environmental factors. The paper gives much breadth for future research on the topic. verall
purchase decision is likely to be affected by the usage behaviour of the consumer along with
the other factors discussed earlier.
Decision Process
Belief
Attitudes
Intentions
Problem Recognition
Search
Internal
External
Alternative
Purchase
Outcomes
DisinvestmentDissatisfaction/
Satisfaction
ConsumptionCognitive
Individual
Characteristics
Motives Values Lifestyle Personality
Social Influence
Culture Reference Grp Family
Situational and
Economic Factors
Online Environment
Website Quality Website
Interface
WebsiteSatisfaction
WebsiteExperience
External Factors
Engel-Kollat-Blackwell (EKB)modelExtracted from Darley, Blankson and Luthege 2010 Psychology and Marketing 2010
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The geographic proximity on a purchase decision is discussed in detail by Janakiraman and
Niraj 2011 gives us an interesting perspective on how online shopping has become an easy
way of accessing products across the globe. It is also imperative for businesses today to be
empowered enough to cater to consumers world over. The paper is a good perspective on
how this geographical proximity being a limiting factor earlier in the past, is now strength asbusinesses strive to create their customer base in far flung areas of the world.
According to Poddar, Mosteller and Scholder2009, the enhancement of the aforementioned
online buying capabilities of consumers has also increased the concerns pertaining to online
privacy and the usage of data for the purposes of building stronger relationships. It is due to
this concern that consumers end up falsifying information asked by online websites relating
to personal detail, likes and dislikes etc. It is a struggle between gratifying the firms desire
for correct and complete information against their own desire for privacy in the said
relationship. The cost of filtering the correct information from the falsified information isquite high and it is difficult too. According to Krill 2000 75% companies in the United States
are unable to effectively use the Consumer Relationship Management systems to create
comprehensive and accurate profiling of consumers. Furthermore, consumers tend to
create false identities or the so-called Guerilla Tactics. It is due to their feelings of losing
control of their own data while providing information online. According to the paper, it is
imperative for business to create an image of better services based on information
exchanges and an impeccable reputation to extract more truthful information.
All consumer behaviour and the interrelated factors of online search and ease of purchase
all meet at the point of our research objective which is to provide some sort of guidance to
the consumer with the help aides. Willemsen et al 2011 discusses the research on the
importance of an expert providing the information and the tendency of individuals to then
believe this information and utilize it to make informed decision. Likewise if the information
is shared through a source that cannot be taken to be credible and does not fall in the realm
of expertise on the topic, it might as well be taken lightly and may have little weight in the
subject decision. The information provided by an expert is automatically taken as if it was
authentic, and has significant weight on the brand attitudes, purchase intention and
behaviours of consumers.
Gen Su, B. Comer and Lee 2008 gave an interesting perspective on creating such an expert to
provide guidance, suggestions or recommendations to consumers while they collect
information for their respective purchase decision. The concept of Recommendation agents
(RA) is rather common abroad but has not been explored in the Pakistani markets. These
RAs can be an excellent solution for the information overload that some consumers tend to
avoid and therefore end up making weak purchase decisions. It is a thin line as consumers in
most cases may consider that the information provided is too much or too little for an
informed decision. A RA would provide a solution to consumers by providing information in
the manner that is not overloading and that which is relevant to the needs of the consumer.
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RAs tend to provide the data in a manner which increases consumer processing capacity for
an informed decision. These may be embedded in the website of the retailer or may be
active as a separate website for the purpose with respect to certain products or services.
According to the classification by Gen Su, B. Comer and Lee 2008, there are two types of
RAs, attribute-based and benefit-based. Attribute-based RA focus on the relative advantage
of a product features whereas benefit-based RA focuses on benefit of each product feature.
The difference of these two types is the degree of specificity of each. Attribute-based RAs
tend to be more sophisticated as compared to benefit-based RA in terms of an informed
decision.
Gen Su, B. Comer and Lee 2008 feel that there are two types of theories underlying the
framework of their study. These include the Cost-Benefit Theory and the Value-Percept
Diversity Model. The factors pertaining to the costs of information collection for purchase
decision making, include consumers assessment of the monetary expenses, physical efforts,
psychological strain etc. Whereas the benefits of the same include increment of utility and
value addition to the decision making process. Similarly Value-Percept Diversity Model
dictates that the satisfaction is a result of cognitive evaluation process. It basically means
that if the cost of the product (service) remains the same but the overall benefit increases
then the customer would be satisfied. On the flip side, if the benefits remain the same but
the costs increase then the customer would go less satisfied.
Therefore the concept of RA tends to create a more satisfied buying decision. Consumers
tend to find important implications with respect to an electronic RA, such as influence ontheir perception of website attributes, switching of relevant dimensions of services quality,
change in quality of their decision and efforts by RAs towards improving their buying
experience.
Different types of RAs discussed earlier were attributes-based and benefit-based. This
classification can be further broken down into RAs that not only give you results based only
attributes, they also take into consideration the weights of the attributes as per the
consumers specifications. These are further considered to be beneficial by consumers as
they reduce cognitive costs of choosing between different alternatives.
Recommendation Agents are not an aim to provide an advice to a consumer, the aim of RAs
is to give a comprehensive overview of all the options and to ultimately indicate the best
one through its own assessment results.
The application of such RAs can be for an array of products and services, be it apparel and
clothing or dining services.
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HA0 = Consumers are not open to taking guidance from an electronic aid
while Shopping online
HA1= Consumers are open to taking guidance from an electronic aid while
Shopping online
HB0 = Consumers are not inclined to Recommendation Agents providing advice on weighted
product attributes
HB1 = Consumers are inclined to Recommendation Agents providing advice on weighted
product attributes
The sample that was part of this
survey included 350 individuals, out of
which 75% were males and 25% were
females. This is indicative of the active
users of internet that we have been
able to tap are males and therefore
the conclusions that we may draw are
more skewed towards their online shopping habits.
Almost 97% of the total individuals surveyed are
between the ages of 20-40. This is the most active
generation on the internet, with the appetite for
such products. Individuals in the age groups of 41-
60 are not too open to change and may find it
difficult in adjusting to the options of online
shopping as opposed to the traditional brick and
mortar option. Further research work can be done
on these untapped age groups.
Usage of Internet is immensely common
and since the subject survey was being
conducted online, it was bound to be
filled by individuals who frequently use
the internet for personal and
professional purposes. The data is
indicative that the segment that is being
studied in this research paper is well
aware and educated regarding the internet.
Results
Hypotheses
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Among those who have
become a part of this survey
55% are patient buyers. It is
rather common for
consumers to put somethought, effort and research
in their buying decision,
hence the results showing
the maximum number of
participants to be patient
buyers. Impulsive buyers are
rather less with only a 16%
and Analytical buyers at 29%.
Since online shopping is not a common idea in the South Asian region, only 51% of the
individuals sampled had ever made a purchase online. The reasons for this could include the
lack of buying power and technological
backwardness. Furthermore, lack of trust for
online, faceless transaction is something that will
be achieved over time and sudden acceptance of
the same cannot be expected.
The factors that promote Online Shopping for
consumers include the broad category of
Convenience which was selected by 200
participants of the total 350 surveyed. The more
specific factors promoting Online Shopping include Home Deliveries, Return and Warranties,
Availability of Information & Choices and Ease of Payment. Home Delivery is considered to
be the most important factor among given factors for the promotion of Online Shopping.
Of all the factors given to the consumers, Home Delivery has been picked as the most
motivating factor next to the broader scope of Convenience. The other factors are
somewhat in equal weights.
Tracing back to the real motivation,
behind a purchase decision which
leads to online shopping, includes
Variety, Price, Quality and Branding.
The factor of Quality remains the
most important factor for consumers.
When making a purchase online or
offline in the physical world,consumers want to make no compromise on Quality. For this reason E-Commerce based
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companies have to take an even more
dedicated approach at providing Quality in
their products and services. The competition
is fierce and a slacking approach can prove to
be detrimental for the company.
Consumer attitude towards their shopping
experience includes the factor of seeking
guidance from peers, family or friends. In our
research we have come to find that 63% of
our sample is open to taking suggestions and
advice for their shopping decision, which sets
the stage for the introduction for a
recommendation agent.
The lesser portion of our sample feels
that they are overloaded with
information when shopping online.
Although the more significant chunk of
the sample feel that they dont, it is
however an easier feat for the consumer
if the information shared on a givenproduct is compiled and presented in an
easier and simpler summarization as
opposed to sifting all the content
available on the internet to make a
shopping decision.
Of the sample surveyed, close to 90% have never come across a Recommendation Agent,
which is cognizant of the fact that it is not a common concept in Pakistan and few have ever
encountered such a facility on the Pakistani e-commerce front. The lack of a recommendation
agent from the Pakistani websites is due to the
lagging behind of our technological development.
Individuals who had come across a
recommendation agent named website with the
option of providing guidance and/or product
summaries on the website of a few European
countries and the West in general.
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Although the market is not aware of the
concept of a Recommendation Agent and
have never come across it, but a significant
portion of the sample surveyed is open to
the idea of taking guidance of an ElectronicAid which shopping online. This shows that
the market is mature for this next step
forward. It is a credit to the development of
E-commerce in the South Asian region that
the consumers are now open to the idea of sharing their likes, dislikes and ideas on the web.
The concept of Recommendation Agents and their utility is further enhanced with the
option to take the guidance on just products attributes or take the consumers preference
and assign weights toeach attribute as
indicated by the
consumer. This will
lead to an in-depth
analysis for the
consumer; the
Recommendation
Agent would list
products in terms ofconsumers preference
and give the consumer
the rationale for such
recommendation.
CROSS TABULATION
Gender * Which factor is most likely to motivate you to shop online?
Count
Which factor is most likely to motivate you to shop online? Total
1 2 3 4 5 6 1
Gender 1 76 41 39 37 37 32 262
2 25 5 13 10 25 10 88
Total 101 46 52 47 62 42 350
Furthermore, from cross tabulation of gender and motivational factors, we find that males
are most motivated to shop online by Convenience and Ease of Payment whereas females
are most motivated by Convenience and Home Delivery. Convenience being a broad factor,we will focus more on Ease of Payment and Home Delivery in our discussion.
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Males are more prone to using the modes of payment online as compared to females,
whereas females are more prone to staying home as is the culture of the subcontinent and
thus would prefer Home Delivery as the most important factor.
Age group * Which factor is most likely to motivate you to shop online?
Count
Which factor is most likely to motivate you to shop online? Total
1 2 3 4 5 6 1
Age
group
183 32 39 39 53 38 284
2 14 14 9 7 7 4 55
3 2 0 2 1 1 0 6
4 2 0 2 0 1 0 5
Total 101 46 52 47 62 42 350
The Cross tabulation for age groups against most motivating factors for shopping online,
show that individuals of ages 20-40 are most motivated by Convenience and Home Delivery.
In comparison fewer individuals picked Availability of Choices and Information as these may
also be available at a physical storefront. Returns and Warranties are chosen the least as the
same is not a common practice in Pakistan or the South Asian region.
CHI SQUARE TEST
Would you like to take guidance from an electronic aid when making online shopping
decisions?
HA0 = Consumers are not open to taking guidance from an electronic aid while Shopping
online
HA1= Consumers are open to taking guidance from an electronic aid while Shopping online
Observed N Expected N Residual
1 211 175.0 36.0
2 139 175.0 -36.0
Total 350
Test Statistics
Would you like to take guidance from an electronic aid when making
online shopping decisions?
Chi-Square(a) 14.811
Df 1
Asymp. Sig. .0001
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Since critical value from the chi-square distribution table for degrees of freedom being 1 and
= 0.01 is 6.635. Since 14.811>6.635 for the test, the decision is to reject the null
hypothesis.
This leads this research to the conclusion that consumers are open to taking guidance from
an electronic aid while shopping online and that the market is mature enough for such a
system to be introduced.
Would you like to take guidance from an electronic aid when making online shopping
decisions?
HB0 = Consumers are not inclined to Recommendation Agents providing advice on weighted
product attributes
HB1 = Consumers are inclined to Recommendation Agents providing advice on weighted
product attributes
Observed N Expected N Residual
1 211 175.0 36.0
2 139 175.0 -36.0
Total 350
Test Statistics
Would you prefer the said electronic aid to give its
analysis/recommendation based onChi-Square(a) 12.446
Df 1
Asymp. Sig. .0001
The critical value from the chi-square distribution table for degrees of freedom being 1 and
= 0.01 is 6.635. Since 12.446>6.635 for the test, the decision is to reject the null
hypothesis.
This is leads this research to the conclusion that consumers are inclined to
recommendation agents which provided guidance based on weighted products attributesbased on the weights assigned to attributes by consumers. The market is
willing to open up to such technological advancements.
The gist of this research paper is the consideration of consumers online
search and purchase behaviour in Pakistan, its maturity and openness to
accepting such technological advances. It is also our finding that if
consumers were to be given the ability to share their likes, dislikes and
general preferences, the concept of recommendation agent would be
welcomed and its utility would be proven beyond all doubt in the Pakistani
Market. Furthermore, the concept of guidance while shopping online based
Conclusion
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on weights assigned to products attributes by consumers would also be received and
accepted by consumers in Pakistan.
There are further avenues for research on Recommendation Agents to which this Research
Paper can prove to be a premise to. The design and launch of a
Recommendation Agent may be taken up for further research and such a
concept could be launched in the Pakistani market based on such research.
The Recommendation Agent can be launched for multiple industries, such as
Furniture, Cars, and Apparel etc.
A short model for a Recommendation could be for the Clothing industry,
whereby a boutique could launch a Recommendation Agent to their
website. If the consumer were to share details of their body structure and
size, the Recommendation Agent could share which clothes out of the products available
would suit the consumer the most, in terms of fitting, fall of the garment, etc.
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Appendix A: Survey Questionnaire
Consumers' Online Search and Purchase Behavior and Utility
of Recommendation Agents in PakistanThis is a research being conducted by students of Institute of Business Management (IoBM) for the course of E-Commerce. Kindly fill out the survey below. We are striving to provide genuine and authentic information and resultsthrough our research.* Required
Gender *
Male Female
Age group *
20-30 31-40 41-50 51-60
Do you use the internet ? *
Yes No
What type of a buyer are you ? *
Impulsive Buyer - buying decision without much thought Patient Buyer - buying decision after some comparisons Analytical Buyer - buying decision after thorough research
Have you ever made a purchase online ? *
Yes
No
In your understanding, what are the most important factors that promote online shopping ? *Check more than oneoptions if applicable
Convenience Ease of Payment Availability of Choices Availability of Information Home Delivery Returns and Warranties
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Which factor is most likely to motivate you to shop online ? *
Convenience Ease of Payment Availability of Choices Availability of Information Home Delivery Returns and Warranties
What factor effects your buying decision the most ? *
Variety Price Quality Branding
Do you seek guidance for your shopping decisions ? *
Yes No
When shopping online, do you feel overloaded with Information?
Yes No
Have you ever come across an electronic aid that guides you with respect to your shopping decisions ?If No, pleaseskip the next question
Yes No
If Yes, kindly mention the website/URL
Would you like to take guidance from an electronic aid when making online shopping decisions ?
Yes No
Would you prefer the said electronic aid to give its analysis/recommendation based on
Comparison based only Product's Attribute Comparison based on Weights assigned to attributes of products by yourself