Smartphone Consumer Behaviour E-Commerce M-Commerce MBA OUM

INFORMATION TECHNOLOGY FOR MANAGERS BMIT5103

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CONTENTS 1.0 ABSTRACT ..................................................................................................................................... 2

2.0 INTRODUCTION ........................................................................................................................... 2

3.0 LITERATURE REVIEW .............................................................................................................. 5

3.1 Consumer Behaviour .................................................................................................................. 5

3.2 Mobile Commerce (M-Commerce) .......................................................................................... 10

4.0 E-COMMERCE IN ORGANISATIONS .................................................................................... 15

4.1 TESCO ....................................................................................................................................... 15

4.1.1 Customer View ................................................................................................................... 16

4.1.2 Shopping Experience ......................................................................................................... 16

4.2 JETSTAR................................................................................................................................... 18

4.2.1 Searching and Booking ...................................................................................................... 19

4.2.2 Purchasing and Payment ................................................................................................... 20

4.2.3 Flight Ticket ....................................................................................................................... 22

5.0 WELL KNOWN ORGANISATION - SPORTS DIRECT ........................................................ 23

5.1 The Organisation and Business Operation ............................................................................. 23

5.2 Vision and Mission .................................................................................................................... 24

5.3 E-Commerce Practice ............................................................................................................... 25

5.4 E-Commerce Growth ................................................................................................................ 29

5.5 E-Commerce Proposal Enhancement ..................................................................................... 29

5.5.1 Amazing Testimonials ......................................................................................................... 29

5.5.2 Instant Chat ......................................................................................................................... 30

5.5.3 Large Encrypted Fence Logo ............................................................................................. 31

5.5.4 Incentives upon Register ..................................................................................................... 31

6.0 CONCLUSION ............................................................................................................................. 32

7.0 REFERENCES .............................................................................................................................. 34


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SMART PHONE CONSUMER BEHAVIOUR AND MOBILE COMMERCE

1.0 ABSTRACT

Latest and non-stop developments in mobile technologies have produced a new kind of device,

an easy to use and programmable mobile phone; the smart phone. In general, smart phone users

can obtain any application which is customized for specific user needs and preferences Today’s

smart phone application markets prove an ever increasing number of applications. Smart phone

operating systems include Apple’s iOS, Google’s Android, Microsoft’s Windows Phone,

Nokia’s Symbian, and RIM’s BlackBerry OS. Most popular applications download centre for

Android device is Play Store and App Store for Apple IOS. The purpose of this paper is to

explain the attitude or behaviour of consumers toward the usability of smart phone and

perspective look of mobile e-commerce which is also known as mobile commerce or m-

commerce.

2.0 INTRODUCTION

Mobile phone nowadays are called as smart phone as it offers more advanced computing power

and connectivity. Generally, a smart phone is a handheld computer, powerful enough to

perform various functionalities comparable to a computer. Along with the smart phone

fundamental capabilities to make voice call, video call, SMS, and MMS. In other words, smart

phone have extended list of information processing functionalities such as Wi-Fi, GPS, high

resolution touch screen with ability to access email and Internet, managing personal time

schedule, editing documents and images, and many other applications based on specific

function and task.

“At its core, e-commerce refers to the purchase and sale of goods and/or services via electronic

channels such as the Internet” (Arline, 2015, para. 2). E-commerce is indeed a revolutionary

innovation, and businesses have increasingly adopted electronic commerce or e-commerce to

automate their operations and processes. Present-day electronic commerce involves everything

from selling and buying goods and payment services via the Internet, ordering "digital" content

for immediate online utilization to a range of services.

Turban et al. (2015) indicated that mobile e-commerce or m-commerce is focused on

performing transactions with the use of mobile apps and mobile websites which might not

essentially involve interaction with a conventional physical retail store.


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According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, the

global smart phone market grew 13.0% over a year in second quarter of 2015 with 341.5 million

shipments (Smart phone OS Market, 2016).

Figure 1.0

Figure 2.0

Referring to the above graph and table (Worldwide Smart phone OS Market Share), it is clearly

shown that the smart phone global market at second quarter of 2015 is being dominated by

Android OS devices as much as 82.8% market share compare to iOS at 13.9% followed by

Windows Phone at 2.6%, BlackBerry OS at 0.3% and 0.4% by Others.

Android offers wide range of application with various usage and these apps can be downloaded

from Play Store download centre, where most of it is free. And there are also Apple’s apps that

have been specially created for Android user compatibility that could be downloaded at Play

Store. Due to smart phone or device equipped with Android OS is obviously much cheaper

than other OSes; consumers are purchasing them mostly due to price point of the device alone.

This contributes Android as a majority in the smart phone market share.


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Figure 3.0

Figure 4.0

Samsung is the global smart phone market leader with 21.4% market share followed by Apple,

Huawei, Xiaomi, Lenovo and Others. Chinese smart phone manufacturer such as Huawei,

Xiaomi and Lenovo when they are combined together astonishingly control the market share

at 19%. This percentage is kept on increasing each year, and they are not far behind Samsung.

In a different angle, we are looking at why Samsung alone as a brand has better global market

share? This is generally because their product portfolio is wider; from low-end up to real high-

end. So they can target a bigger market, provide larger option in meeting customer’s

preferences with various selection of price, functionality and quality in mind. But Apple has

their own advantages with high product quality, sleek design, operating system robustness and

great user experience; still makes them a popular choice in the smart phone market behind

Samsung and Android devices.


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3.0 LITERATURE REVIEW

3.1 Consumer Behaviour

So what is consumer behaviour? It is the study of the processed involved when individuals or

groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy

needs and desires (Consumer Behaviour, 2013).

There are many reasons on why consumer or end user have their needs in owning smart phone.

Basic or general purpose to own a smart phone is communication. But there are many

preference that we can look upon that influence on selection of smart phone vary with

individual preferences which will be based on their specific usage and requirement.

What contributes to this selection? We go back to the smart phone itself, what usage it could

deliver to its user. And what the user want from the smart phone that will benefit them. To

understand more and deeper what consumer behaviour on smart phone is we need to know

what the processes are involved that leads to selection and purchase or buying decision.

The Engel, Kollat and Blackwell model (Figure 1.0) shows consumers’ buying-decision

process, which is based on the field of consumer psychology theories. It indicates that

consumers pass through five stages: problem recognition, information search, evaluation of

alternatives, purchase decision, and post-purchase behaviour. The buying decision process

starts before the actual purchase took place. Nevertheless, consumers do not always pass

through all five stages when buying goods. Some of the stages would be skipped. For example,

when buying daily necessities, consumers would skip information search and evaluation, going

directly from the problem recognition to the purchase decision. “The Engel, Kollat and

Blackwell model is essentially a conscious problem solving and learning model of consumer

behaviour” (Jisana T.K., 2014.)


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Figure 5.0 the Engel, Kollat and Blackwell model

Problem recognition. The buying process starts when the buyer recognizes problems or needs-

the buyer senses that there is the difference between the actual circumstance and desired

circumstance. Essentially, problems or needs are triggered by many factor. A person may be

tempted by advertisement, which triggers the thought about purchasing.

Information search. After recognizing the problem in this case is need, consumers will start

to search for information. At this level, a person is more receptive to information.

Information sources can be divided into four groups:

(1) Personal- family, friends, neighbours, acquaintances.

(2) Commercial- advertising, web sites, salespersons, dealers, packaging, displays.

(3) Public- mass media, consumer-rating organizations.

(4) Experiential- handling, examining, using the product.

Evaluation of alternatives. Consumers will develop their own evaluation standard based on

the information from information search. Nevertheless, no single evaluation process can be

applied by all consumers or by one consumer in all buying situations. Comparison of usability

features, design and price will take place.

Purchase decision. In this stage, consumers choose the best way to solve the problems and

satisfy the needs and purchase. However, this process is usually influenced by reference


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groups, family, acquaintances, or other unanticipated situational factors. Usually, when

consumers have a positive image toward the certain brand, there is a great possibility that they

will intend to buy the product of that brand.

Post-purchase behaviour. After the purchase, the consumer evaluates the products from the

using experience. If performance falls short of expectations, the consumer is disappointed and

keep searching for more information to minimize the dissatisfaction; if the product meets

expectations, consumers is satisfied; if the product exceeds expectations, the consumer is

delighted. The chance of repurchase will be larger. The consumer will also talk about

favourably about the product to others.

Consumer decision process in purchasing smart phone highly influenced by following factors;

Brands, Convenience, Dependency, Price, Product Feature and Social Influence. These factors

will be the measure by consumer in smart phone selection.

Brand is the most valuable asset for a company, where it represents a product or service means

to consumers. Brands are more than just names and symbols. It is also the element of

relationship between company and customers. The brand name has directly influenced

customer’s perception toward the quality of the offering. When customers are satisfied, they

generate word of mouth and it will lead to others to be interested and choose the brand. To

enhance consumer response, marketers strive to build brand equity in order to capture

consumer preference and loyalty. A study on the effect of brand name toward cars shows that

people trust the well know brand for its quality, performance and believe that brand shows a

person lifestyle and societal status. Brand is a name, term, design, symbol or any feature that

identifies one seller’s goods or services as distinct from those of other sellers.

Convenience refers to a situation where works are simplified, easy and can be done with less

effort, without discomfort or difficulty. Convenience in Smart phone may refer to the ability to

use the Smart phone at anytime and anywhere, without having to port the Smart phone in a

fixed workstation. Nowadays, people want things to be done at the fingertips. The use of

applications (apps) in Smart phone has flourished businesses by having ability such as

documenting expenses and processing credit cards anywhere. Smart phone is a 4 inch device

which performs as powerful like a heavy and big size laptop. It able to do everything like a

laptop, keeping everything such as documents, photos, games and apps in one’s pocket,


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(Anthony, 2012). Wi-Fi is everywhere especially in the city and restaurants, making surfing

internet become convenience. A study shows there is a high usage of Smart phone for medical

apps such as disease diagnosis management and drug reference among medical students and

junior doctors for education and clinical practice purposes (Payne et al., 2012). Instead of

flipping books, medical knowledge can be very fast and convenient through Smart phone apps.

Dependency is the strong propensity for continuous high usage, being engaged and unwilling

to be apart from it. Smart phone is no longer a phone for calling and instant messaging alone.

For the customernger generation, online education or E-learning has growing popularity in

countries such as Malaysia, China, South Korea and India. People have become much

dependent on Smart phone by doing most of the jobs using a Smart phone, where formerly it

can be done without Smart phone. Camera, MP3, notes, contact lists is all in the Smart phone,

making people unable to do their work without Smart phone. People are so obsessed that

company introduced thousands of apps to make their Smart phone usage experience better.

Smart phone has also become an important device in surfing the internet. Not only marital

issues arise, social and communication skills of people also becoming poor and texting become

a way of communication instead of talking.

Price is the amount of money charged for a product or service, or the sum of the values that

customers exchange for the benefits of having or using the product or service. Price is basically

the amount of money a consumer willing to pay for in exchange with products and services

that they think are valuable. The value of money varies from different people. There are so

many methods of pricing, such as mark-up pricing, target-return pricing, perceived-value

pricing, going rate pricing and promotional pricing (Kotler and Keller, 2012). If the discount

rate is low, it should be presented in its value; whereas if the discount rate is high, it should be

presented in percentage, so that customers will have higher purchase intention (Isabella, 2012).

In year 2013, Malaysian customerth who aged 21 to 30, with monthly earning less than RM300

is eligible to get a RM200 government rebate on a Smart phone (The Star, 2013). It shows

encouragement from the government to the customerth, which is the Generation Y to use a

Smart phone by offering better price especially those who concern about pricing of Smart

phone. In this case, price is the driven factor in a purchase decision.

Product Feature is an attribute of a product to meet the satisfaction level of consumers’ needs

and wants, through owning of the product, usage, and utilization of a product. Product features


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including hardware and software. Hardware is the description for a device that can be touched

physically. The hardware of a Smart phone is the body of the phone itself, size and weight.

Colour and design are also considered as hardware as it is the physical appearance of the Smart

phone. Software whereas is the general term for computer programs, procedure and

documentation. The software of a Smart phone is the operating platform, storage memory, or

apps that run the phone. The software for a phone in the market is such as iOS, Android,

Windows, RIM Blackberry, Symbian and others. Study on operating system shows Android

consist of 42%, Symbian 18%, whereas iOS, RIM Blackberry and Windows are the same at

6% (Russell, 2012). According to a research, factor affecting ones to acquire a Smart phone

due to software consists of 33 % whereas hardware has only 17.6%. It shows that software is

much more important than hardware in making Smart phone purchase decision. However, in

the same research, Smart phone’s design gain the most importance of the device specification,

it consists of 56%, exceed the importance of Wi-Fi (38.5%), computing power (34.2%), price

(30.2%) and others (Osman, 2012).

Social Influence. A consumer behaviour is influenced by social factors, such as the consumer’s

small groups, family, and social roles and status. During the decision making process,

consumers tend to always influence by the social group, which is the people. Depending on

various factors, consumers might listen and believe in different social groups, perhaps to those

who are more professional in certain fields. In the purchasing of Smart phone for Generation

Y, perhaps the social influence might come from friends, peers, family members and spouse.

According to a research, consumers’ purchase behaviour is shaped up by others, especially by

family members while buying high-involvement products (Farzana, 2012). According to

another research, 35.6% of 1814 respondents feels that the trend in community is one of the

important criteria that influence Smart phone purchase decision (Osman, 2012). A study also

found that social influence has a significant relationship of student’s dependency on a Smart

phone. Another study towards customerng adult of age 19 to 25 shows that both direct and

vicarious role models have an impact on the consumer’s purchase intention, in which direct

role model refers to parents and vicarious role model refer to celebrities. Social influence

indeed plays a significant role and it is the most influential to student’s dependency on Smart

phone (Suki and Suki, 2013).


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With the increase of smart phone users globally, many activities could be done just using the

smart phone itself. Apps (applications) installed on smart phone for example has enable online

transaction or purchasing could be established and performed safely. This has made the mobile

commerce increase tremendously in recent online market.

3.2 Mobile Commerce (M-Commerce)

Current global situation has shown us that consumer spend a lot of their time with online retail

on their smart phone rather than computer desktop or notebook. Due to this trend, retailer has

changed their strategy to meet the increasing online consumer and to maintain the

competitiveness on current digital market.

Past practices have shown that business being done traditionally by visiting physical store in

this case we call it official retail store or outlet. Consumer or customer visited the outlet, view

the product, do a product selection, purchase, proceed with payment and receive item. As

technology evolved with Internet, consumer has the ability to purchase safely with online

security measure on website using computer desktop or notebook where consumer do the same

processes – visit, view, select, purchase and payment via their online store. But the only

difference is item purchased will not be given immediately instead it will be delivered via postal

service.

Now with the same website online purchasing concept, the process of buying and selling has

been widely and safely been implemented and performed on smart phone with application

being developed by retailer or business entity for the ease of consumer; where power of

consumer is at their fingertip and convenience. It is getting more interesting as the online store

is open 24 hours and 7 days a week.

According to Galgey & Pattinson, keys to survive in retail business is to understand and

respond to consumer. Retailers have to face difficult industry pattern and inconsistency of

consumer behaviour. This situation will be explained more and comprehended by looking at

the following.

Empowered Price Sensitivity where consumers have wider range of option in to buy product

with the lowest price. With the web and mobile technology product, supplier and price

information can be obtained much faster.


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Nonlinear Search and Influence Patterns. Mass media advertising plays important role in

engaging and influencing consumer to purchase product online or drive them to the physical

retail outlet. With the aid of social media, mobile ads, email and search marketing have given

the retailers to influence consumer in purchasing decision making.

Channel Hopping. Options for purchasing products have increased due to greater number of

communication channels. Consumers have switched from website to smartphone when doing

research and finalizing purchase. Social media is high potential retail medium and also called

social commerce.

Digital Immigrants, Natives and Dependents. Digital Immigrants are older group that

increasingly comfortable with technology but they are much less to utilise mobile technology

in shopping behaviour. Digital Natives are the first generation to grown up with digital devices

and Internet. They are comfortable to use the technology for purchasing activity. Digital

Dependents is new generation where they are not comfortable if they do not have access to

technology because they are growing up with broadband connections, constant connectivity

and related technology.

Need For Convenience. Living a stressful live due to economic and social factors consumer

searching for products and shopping channels that could effect on time and financial resources

on top of looking for satisfaction on fulfilment, desired goods and great service.

M-commerce is growing rapidly and actively. Mobile is 29% of e-commerce transactions in

the US and 34% globally (State of Mobile Commerce, 2015). By the end of 2015, mobile share

is forecast to reach 33% in the US, and 40% globally. According to report by Criteo US Mobile

transactions grew 10% in 3 months. Growth continues across all retail categories, especially

with top quartile retailers. It’s all due to smart phone wide usage in most countries, smart phone

are now the majority in mobile transactions. There is no limit to it and for the first time Japan

and South Korea had over 50% of their e-commerce transactions on mobile. Consumers view

the same number of products on smart phone and desktop sites.


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Figure 6.0 Source: Criteo, 2015.

In Q4 2014, mobile accounted for 27% of retail e-commerce transactions in the US. In Q1

2015, that figure has risen to reach almost 30%. Mobile share of e-commerce transactions for

the top quartile retailers has increased to 38% in Q1 2015.

M-commerce is now 34% of all e-commerce transactions globally – based on an accurate

weighting of e-commerce market size by country. Mobile share is slightly lower in the US than

the global average with 29% of e-commerce transactions coming from mobile devices. For the

first time ever, Japan and South Korea had the majority of their e-commerce transactions via

mobile in Q1 2015.

Figure 7.0 Source: Criteo, 2015.

Fashion and Luxury retailers have the highest share of mobile transactions with Mass

Merchants as a close second. In contrast, the share of mobile transactions are low in the Home

category, which includes home improvement and interior design products. While these are less


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“impulse” purchases, we often find conversion rates are driven more by the quality of the

mobile site experience. The move to e-commerce is repeating itself: leaders are seeing a very

rapid growth in m-commerce.

The majority of mobile transactions in the US come from smart phone, more than share of

smart phone transactions in the UK and Germany. Even though the translation rates on smart

phone are lower than desktop or tablet, smart phone generate more transactions due to

significantly higher traffic. With the introduction of larger screen-sizes, such as with the iPhone

6 and Samsung Galaxy, consumers are finding smart phone a convenient way to complete

purchases. Smart phone share of mobile transactions will continue to grow.

All the mobile payment transaction are made possible either by using the e-wallets or mobile-

payment smartphone apps. E-wallets is an online prepaid account where one can stock money,

to be used when required. As it is a pre-loaded facility, consumers can buy a range of products

from airline tickets to grocery without swiping a debit or credit card. Most preferred mode of

payment is e-wallets as everyday transaction with 19% respondents as per survey done by

Nielsen on February 2014.

Mobile-payment smartphone apps are powered by near-field communication (NFC)

technology is growing fast than e-wallets. With the ease of mobile apps, consumers can tap

their phones to a POS device for payment where it reads customer’s prepaid card details and

made NFC payment possible.

Other than e-wallets and mobile-payment smart phone apps there are other alternatives

currently being use.

Charge to Phone Bill with SMS Confirmation, this payment method is easier than entering

credit card and other information on smart phone. It requires users to set up an account with a

payment company, famously introduced by Zong where it was been acquired by eBay in 2011

and later owned by PayPal. An SMS with pin number will be sent and to be keyed-in to the

website for transaction completion. Amount paid will be charged to the phone bill.

Phone-Displayed Barcode That Retailer Scans, this method will generate a QR code on user’s

phone which it will later be scanned by retailer where amount will be deducted from customer


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pre-paid account (this account has been established at the first place). All this made possible

by using retailers application installed on the smart phone and reads by the POS system.

Transfer of Funds from Payment Account Using SMS, using a mobile phone and SMS, user

can transfer money to anyone else with a mobile phone number. But user have to transfer

money to the online account first from a bank or credit card. The receiver must create an

account at the payment company to retrieve the funds.

Mobile Phone Card Reader, this approach requires mobile phone users to insert a small card

reader into the audio jack of mobile device. The card reader allows to make or receive credit

card payments without a merchant account.

User Scan of QR codes Generated by the Retailer, buyer scans the merchant’s QR code using

a mobile app then approves a fund transfer when it shows up on the device. Person-to-person

transfers are also possible because the app can generate custom QR tags that individuals could

scan from one another’s mobile device.

Mobile Bill Payments, a number of companies are now providing option of paying bills directly

from mobile device in addition to the current wireline banking and ATMs. This method is a

preferred method for mobile users who do not have bank accounts.


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4.0 E-COMMERCE IN ORGANISATIONS

Now we will look at 2 established organisations that have implemented e-commerce approach

in their business; Tesco PLC the 2nd largest hypermarket retailer in the world and Jetstar

Airways the Australian based low-cost airline carrier.

Both companies involved in e-commerce in their daily business operation. As for Tesco they

are using the website and mobile apps to showcase their selling item as per sold in their physical

outlet, from groceries to cleaning items. As for Jetstar other than booking and selling airline

ticket at the authorized centre and agent they have fully utilized the same method using website

and again mobile apps to enable customer to book and purchase the airline tickets.

We will look on the processes and method for both organizations on their e-commerce practices

in enabling customer to execute the purchasing activity.

4.1 TESCO

Tesco is originally from United Kingdom founded in 1919 and has expanded its business

globally. Tesco can be found in 11 countries; UK, India, Malaysia, Thailand, Czech Republic,

Hungary, Ireland, Poland, Slovakia, Turkey and China (Tesco, 2016).

As for Tesco’s e-commerce practice, we will use Tesco Malaysia’s as subject in the discussion

and analysis. If customer or visitor visited the Tesco’s Malaysia website www.tesco.com.my,

visitor will be feed with a lot of information on Tesco’s Malaysia such as Promotions, Club

Card, Tesco Brand Products, Store Locator, Tesco Malls and Contests (Tesco Malaysia, 2016).

But our focus is to study the process of purchasing or making an online transaction on Tesco’s

web services.

Figure 8.0 Source: Tesco Malaysia, 2016.


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4.1.1 Customer View

Visitor or potential customer could straight away view the selling products from the website.

For instance, normally customer is easily attracted on items that are on promotions. Once the

promo item is clicked customer will see the product info with pictures, price and the promo

period with Buy Now option. If the Buy Now button is being clicked customer will be directed

to secure website with different web address https://eshop.tesco.com.my. This web page is the

main page for Tesco’s electronic shop; where product viewing, selection, purchase and

payment will be made.

4.1.2 Shopping Experience

In order to buy item from Tesco E-shop, customer must create and register a valid Tesco

account. Starting at first step in providing a valid email address account for registration,

followed by address information insertion at second step. This process is very important as not

all area is covered by Tesco for delivery. Final step, keying-in of personal customer details

such as full name, telephone number, and acceptance of Terms & Condition must be agreed

upon and must be completed.

Figure 9.0 Source: Tesco Malaysia, 2012.

As the online shopping experience in Tesco Malaysia referring to the graphical flow above

customers need to select items that they wanted to buy. Items can be searched according to

category, department, brands or general key words; such as soap or perhaps by brand Lux. If

customer had done their shopping before they could mark items shopped as favourites, so next

shopping will be at ease as they need to go favourites to repeat order. For normal process all


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the items selected will be added to Trolley. Once customers have completed shopping and

confirmed all the selected items and put in the trolley, a Check out needs to be done.

After Check out, customers need to choose a time slot for delivery. Nearest Tesco will be

selected based on the delivery address as per keyed-in by customer during registration process.

Customer will be shown a time table slot for delivery. Delivery will be done only on the next

day or other option is self-collect by customer at the selected Tesco the next day. Daily delivery

time is from 8:00am until 10:00pm 7 days a week. Delivery charges will be imposed if the

delivery time is between 8:00am 12:00pm daily. Shopping items for delivery will be prepared

and packed on the same day of the delivery schedule. This is to maintain the latest item from

shelves are being collected.

Customers will only be charged for shopping once ordered items are delivered and well

received; where all shopping items are correct and in good condition. Because of this method

customers have the privilege to amend order before 11:00pm, a night before the delivery day.

Payment is done by using credit card or debit card. Payment can be made fully online (pre-

authorized and secured) or at the door; where card payment device will be used at customer

premises.

Delivery will be done in a controlled temperature transportation. This will ensure the freshness,

quality and safety of items been delivered as far as food safety is concerned. Should there be

any unwanted items or ordered items that customers do not want to receive for certain reason

or for no reason at all, they could return it straight away to the driver during the delivery time.

Any discarded order items will not be charged.

Shopping amount will be only charged based on the exact items that customers have received

and payment will be taken from customer at the end of the day of delivery. In this case it will

be charged to the credit card or debit card.

What Tesco has done on their e-commerce and online shopping has helped a lot of customers

in purchasing daily items with the use of their fingertips and hassle-free. Due to hectic working

life or schedule and bad traffic situation this method is really suitable in ensuring purchasing

for basic amenities such as grocery, clothes and other essential products can be carried out.


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4.2 JETSTAR

Jetstar Airways Pty Ltd, trading as Jetstar, is an Australian low-cost airline (self-described as

"value based") headquartered in Melbourne, Australia. It is a wholly owned subsidiary

of Qantas, created in response to the threat posed by low-cost airline Virgin Blue. Jetstar is part

of Qantas' two brand strategy of having Qantas Airways for the premium full-service market

and Jetstar for the low-cost market. Jetstar carries 8.5% of all passengers travelling in and out

of Australia.

The airline operates an extensive domestic network as well as regional and international

services from its main base at Melbourne Airport, using a mixed fleet of the Airbus A320

family and the Boeing 787 Dreamliner. Like its Qantas parent, Jetstar competes with Virgin

Australia and its fully owned low-cost subsidiary Tigerair Australia. Qantas, through the Jetstar

Group, also has stakes in sister airlines Jetstar Asia Airways, Jetstar Pacific Airlines and Jetstar

Japan. For this particular study we will look at flight booking and purchasing experience.

Based in Singapore, Jetstar Asia’s inaugural flight took off for Hong Kong on 13 December

2004. Now Jetstar fly to 22 popular destinations in North and Southeast Asia with a fleet of

18 A320 aircraft. Jetstar Asia is a majority Singapore held and based company, managed by

Newstar Holdings Pty Ltd, majority owned by Singapore Company Westbrook Investments

Pte Ltd (51 per cent), with the Qantas Group holding the remaining 49 per cent.

Figure 10.0 Source: Jetstar Asia, 2016.

Once passenger has keyed-in www.jetstar.com he/she be brought to the main homepage.

Straight away they will see search flights function; from where and to where. And latest


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promotion on flight tickets will be shown too. With simple design and easy to understand this

will enable user to do information search easily.

4.2.1 Searching and Booking

First, what passenger need to do is; to define from where will to departure and to where is to

arrive. Secondly, they need to select the travel date. Is it a two way return flight or it is a single

flight journey?

Followed by how many passengers will be in the flight. There is option on children travelling

alone and travelling with infants. All these options can be selected.

Since Jetstar is a low fare flight passenger have the option to select lowest fare flight ticket but

lowest fare date and option is decided by Jetstar’s system. If traveling date is same as the system

suggested then it is the passenger’s lucky day, they’ll save a lot.

Figure 11.0 Source: Jetstar Asia, 2016

When selecting flight just make sure to get the right travel time that as per desired or as per

planned. And ensure whether is there a need to select all the extra add-ons such as on board

meal, extra weight baggage, seat selection as per offered in the selection. All these add-ons will

be charged on top of the normal flight rate.

After selecting flight tickets, at the right of the page the Booking Summary can be seen; all the

information on charges.


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After flight tickets have been selected, passenger details need to be filled in. All personal

information must be accurate as per travelling document or passport. Passenger also has the

option to create an account with Jetstar or remain as visitor. It is recommended to register as

registered user as the next flight booking will be a lot easier because Jetstar had the passenger

data been recorded.

4.2.2 Purchasing and Payment

Once the passenger information have been inserted payment will have to be made. Jetstar offers

several convenient payment options that can be choose from.

Paying by Credit Card

Jetstar accept international Visa, MasterCard, Diners Club and UATP cards for credit card

payment. American Express is available if flight is operated by Jetstar Airways (JQ) or Jetstar

Asia (3K) or Jetstar Japan (GK). A Booking and Service Fee will apply. Australian residents

can pay with a Jetstar MasterCard or Jetstar Platinum MasterCard and avoid the Booking and

Service fee.

On selected routes, it is a condition of sale, check-in and boarding that the original, physical

credit or debit card used to purchase the ticket(s) must be presented by the card owner for

verification at the airport. When passenger book travel on these routes, they’ll be informed

of the need for verification during the booking flow. Prior to check-in, the card owner must

take the card together with their government-issued identification (such as a passport, identity

card or driver’s license) to the Jetstar check-in counter. This requirement applies irrespective

of whether the card owner is a part of the travelling party. If the card is not verified, the

passengers whose tickets were purchased with that card may be denied check-in and boarding

at Jetstar’s sole discretion. One verification is required for each return journey.

Paying with A Jetstar Voucher

Vouchers issued by Jetstar can be used for part or full payment of fare. Please note that

vouchers can only be used once and any unused portion of the value of a voucher will be

forfeited. No Booking and Service Fee applies. If there is a balance remaining to be paid,

customer/passenger must pay this balance with another voucher or by credit/debit card on

Jetstar.com. A Booking and Service Fee will apply if passenger choose to pay the balance

with a credit/debit card.


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These are our payment options for payments made in Malaysian Ringgit (MYR). For payment

in other currencies, different payment options are available.

If looked at Jetstar Singapore there are more options on payment method other than Credit

Cards and Jetstar Vouchers alone, below options are being offered:

Paying by 7-Eleven and SingPost

Passenger can pay their booking at SingPost (Post Office, SAM Kiosk, SAM Web and

Mobile) or 7-Eleven stores in Singapore.

A Booking and Service Fee applies for payments made at Singpost and 7-Eleven in

Singapore.

Offline payment via SingPost or 7-Eleven is only available up to 14 days prior to departure.

If passenger wish to make a booking to fly within the next 14 days they must use another

payment method. They must complete their payment within 48 hours of booking. If they do

not, they will need to make a new booking. Please allow 48 hours for the confirmed itinerary

to be sent once payment is made through SingPost or 7-Eleven.

Paying with Paypal

PayPal is available if flight is operated by Jetstar Airways (JQ). If passenger choose to pay

via PayPal, they will be redirected away from the Jetstar website. A Booking and Service Fee

will apply. Payment options for payments made in Singapore Dollars (SGD). For payment in

other currencies, different payment options are available.


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4.2.3 Flight Ticket

Once payment have been complete flight ticket will be emailed to the passenger. This ticket

need to be printed and presented to the check-in counter during departure day for flight

boarding verification purposes.

Figure 12.0 Source: Jetstar Asia, 2016

Passenger also has the convenient way to do online check-in prior to departure. If there is no

baggage to check-in only hand-carry it will be a lot easier, once the online check-in is done

passenger can print the boarding pass themselves and straight away go to the boarding gate.

Even if there is still baggage to check-in time at check-in counter with online check-in will

be less because most of the check-in processes has been done by passenger or customer. By

the end of the day what a customer or passenger wants is a hassle free and joyful flight

experience.


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5.0 WELL KNOWN ORGANISATION - SPORTS DIRECT

5.1 The Organisation and Business Operation

Figure 13.0 Source: Sports Direct, 2016

Sports Direct International plc. The Group commenced trading as a single store in Maidenhead,

founded by Mike Ashley in 1982. Sports Direct expanded to become not only the UK’s leading

sports retailer by revenue and operating profit, but also the owner of a significant number of

world famous sport, fashion and lifestyle brands (Sportsdirect, 2016).

Currently operated 420 sports stores in the UK alone, the majority of which trade under the

SPORTSDIRECT.com fascia. The Premium Lifestyle division operates 130 stores in the UK,

under fascia’s which include Flannels, Cruise, USC and Van Mildert. Internationally growth

has proven unrelenting, with products being offered via wholly-owned retail outlets, joint

ventures with other retailers and stores in other retailer’s stores. Currently operated 270 stores

in 19 European countries, and their strategy is to expand into all major EEA countries over the

next 3 - 5 years.

From the local SPORTSDIRECT.com high street store to the famous Lillywhites store in

London’s Piccadilly Circus, there is a sure to be a SPORTSDIRECT.com store, offering an

incredible choice of football boots, running shoes, football kits, fitness clothing and much

more. Alongside retail outlets, www.sportsdirect.com provides a full multi-channel approach

to improve shopping experience. The site gives access to a huge range of quality sports apparel

being sold by retail partners, which can be arranged to have delivered to customer’s door from

their extensive online catalogue.

Although Sports Direct do not provide delivery services outside of the UK, these services can

be provided by Barlin Delivery Limited, an independent third party that customer can contract

with for overseas delivery via the site. Whether a beginner or a professional, Sports Direct

diverse product range will assist to train and improve in chosen sport or activity.


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Key-People and Leadership

1. Dr Keith Hellawell QPM (Non-Executive Chairman)

2. Mike Ashley (Executive Deputy Chairman & Founder)

3. Dave Forsey (Chief Executive Officer)

4. Matt Pearson (Acting Chief Financial Officer)

5. Simon Bentley (Senior Independent Non-Executive Director)

6. Dave Singleton (Non-Executive Director)

7. Claire Jenkins (Non-Executive Director)

The Group employs over 27,000 people, across 19 countries and various sectors, from Sport,

Fashion, Lifestyle, Gyms and Brands, and their people that makes the Sports Direct Group such

a success (Sportsdirectplc, 2016).

5.2 Vision and Mission

Sports Direct's mission statement is to sell sport clothing and equipment at low prices with the

highest quality and customer service. EXCEPTIONAL QUALITY, UNBEATABLE VALUE.

Sports Direct's key principles are to:

Identify – Brand acquisitions and property enhancement.

Invest – Store portfolio and employees.

Develop – Website and m-commerce, enhanced product ranges.

Promote – Group-owned brands.

The Group operates through three strategic business segments: Sports Retail, Premium

Lifestyle and Brands.

Sports Retail

The Group's Sports Retail division supplies a wide range of sports and leisure equipment,

across an array of global brands, including Group owned brands such as Dunlop, Slazenger

and Lonsdale, third party and licensed-in brands This wide range of products, combined with

extremely competitive pricing, attracts customers to both stores and website in ever increasing

numbers.


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Premium Lifestyle

The Premium Lifestyle division is a must for those fashion conscious shoppers who demand

high-end and on trend apparel. The division centres on contemporary luxury with a brand focus,

and leading stocked brands include Paul Smith, Fendi and Alexander McQueen. The division

enables customers to express their individuality, with new collections regularly being added.

Recent additions include White Premiata, Carven and Canada Goose.

Brands

The Brands division licenses Sport Direct’s brands to partners across the world through a

committed network of licensing and distribution partners. The unique, integrated approach to

brand management ensure consistency, and encourages continual investment and global

success for the brands.

5.3 E-Commerce Practice


To be able to buy via SportsDirect.com customer will need to register an account with Sports

Direct. To do this customer will need an email address and a contact phone number. Setting up

an account will also allow customer to order without having to fill in name and address details

every time customer shop and will also give additional benefits such as regular newsletters,

customer also be one of the first to know when there will be special offers and discounts. Once

registered, customer can update details using the My Account section.


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My Account allows customer to manage customer existing account online. Customer can check

account details, change password, delivery addresses and make payments online.

Secure Login

Shopping online with Sports Direct is safe, all personal and account information that is held

within my account is fully protected.

Instant Access

Access account 24 hours a day, 7 days a week. Customer can also receive fantastic offers via

email.

Order History

View order history and current addresses.

Secure Payment

Make secure online payments.


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How to Shop?

To find a product customer wish to buy customer can either search by description or by product

code using the search facility located in the top right hand corner of the page. Alternatively if

customer see an area of interest use the categories displayed down the right hand side of the

site. This will guide customer to a product listing and when customer click on a product this

will take customer to the product page. From the product page customer can add the product to

customer basket.

Payment

The payment pages used at SportsDirect.com are secure and customer can safely enter

customer card details to pay for customer order. Sports Direct accept the following methods of

payment: Mastercard, VISA, VISA Debit, VISA Electron, Maestro, American Express

(AMEX), PayPal and Gift Cards.

Please select the desired payment option and proceed to the next page where customer will

enter the card details. Based on the type of card customer are using for payment, customer may

then be asked to enter further details to enhance the security of the transaction. This request of

information comes direct from customer card issuer and relates to a password that identifies

customer as the authorised user of the card. If customer do not have a password set up customer

can do so online during the transaction.

All credit and debit card holders are subject to validation and authorisation by both us and the

card issuer, to maintain security and prevent fraud. Internet Fraud is Illegal and perpetrators

will be prosecuted in all cases.

Payment Authentication

Payment authentication or 3D secure are fraud prevention initiatives launched by card issuers.

Verified by Visa (VbV) and MasterCard Secure Code (MSC) work in the same way. The

authentication works by using passwords which are set up by customer or card holder to protect

when shop online.

Many customers register their payment authentication with their card issuer. However, if

customers have not registered their card, they can register during the transaction. Customer

should enter card details and set a password in the secure window. Once customer have


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registered their card, when customer shop online in the future they will only have to enter

password.

Customers should have received information about the payment authentication process from

their card issuers. If customer require more detailed information or encounter a problem with

the authentication process, please contact the card issuer directly. Unfortunately Sports Direct

has no control over the payment authentication process so Sports Direct will be unable to assist

with any authentication enquires.

Order Confirmation

Once customer have placed order customer will be presented with an order confirmation screen

detailing what customer have bought, how much it cost and delivery options. At this time

customer will also be sent a confirmation by email re-stating the details for customer records.

This email does not however indicate that customer order has been or begun to be processed

or a confirmation of contract of purchase.

Once processed, customer will receive a second email from Sports Direct detailing what

customer have purchased and confirming that order has been processed. For UK deliveries,

Sports Direct will also inform customer on the tracking reference number. If customer have

contracted for overseas deliveries, Barlin Delivery will confirm that they have collected

customer goods for delivery to customer and inform customer on the tracking number. By

clicking on the tracking reference link customer will be taken to the courier's website where

customer can see the progress of customer delivery.

Custom Charges and Import Duties

If customer order goods from Sports Direct site for delivery outside the UK, they may be

subject to import duties and taxes which will be levied when the order reaches the delivery

address. Customer will be responsible for payment of any such import duties and taxes. Neither

Sports Direct nor customer overseas delivery provider Barlin Delivery Limited, have control

over these charges and cannot predict their amount.

Delivery

Sports Direct only deliver to UK addresses. Barlin Delivery Limited may provide international

delivery services to international customer. Customer can see a full list of countries that Barlin

Delivery Limited delivers by viewing this delivery table.


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5.4 E-Commerce Growth

Sports Direct International plc reported a 43% rise in online sales, which now account for

15.5% of its total sports retail sales (IREU Top 500, 2013).

Sports Direct International plc reported group revenues up by 23.5% to £1.34bn in the 26 weeks

to October 27 compared to the same time last year, with UK sports retail sales up by 13.4% at

£903.3m. International sales grew by 30.8%. Pre-tax profits grew by 14.3% to £143.1m. The

company aims to expand overseas, opening for business in all of the major economies present

in the European Economic Area in the next three to five years.

5.5 E-Commerce Proposal Enhancement

Sports Direct has a good customer oriented webpage and user friendly customer navigation in

products browsing. However there are still improvements to be made that could enhance the

marketability of e-commerce. Following suggestions and proposal will be considered good and

will enhance Sports Direct e-commerce practice.

5.5.1 Amazing Testimonials

Potential customers are more likely to make online purchases if there are testimonials to ensure

them that the retailer provides quality. Make sure reliable and honest testimonials are included

on Sports Direct product page with the name of the customer who wrote it. To get these, Sports

Direct can ask customers to provide a testimonial via email after the delivery is made.

DeoVeritas.com below does a terrific job selling custom dress shirts. They also have

testimonials on the homepage.

Figure 16.0 Source: Deo Veritas, 2016


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5.5.2 Instant Chat

Include an instant chat option to your site and have a sales rep get in touch with the visitor as

soon as they arrive on your site. This way, if they are looking for something specific, they can

find it with your help more conveniently while you get the chance to up-sell or cross-sell.

Should there be any problem customer could get fast response rather than to wait for email

reply.

It’s a simple image that is on the bottom of the site (or with the scroll) just promoting people

to chat with you. Live Chat, Bold Chat, Live Person & Kayako are some of the most popular

Instant Live Chat services.

Good example is from AirAsia. AirAsia provide live chat service on any query for fast response

to customer or passenger.

Figure 17.0 Source: AirAsia, 2016


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5.5.3 Large Encrypted Fence Logo

Security is the biggest concern when customer shop online since they can’t see the actual

products. Therefore, make sure you satisfy them through proper refund and return policies and

by using security verification programs like the one from VeriSign which is now powered by

Symantec. Sports Direct should highlight these on their website so that customer won’t have

to look hard to find them. Highly recommend using Verisign. If a website is powered by it

customer will see a logo like below (usually in the footer or on checkout pages):

Figure 18.0 Source: Symantec, 2016

5.5.4 Incentives upon Register

Websites that require people to register before making a purchase see more unfinished deals

than those which don’t ask. Most people are reluctant to register. However, the scenario can be

turned around in Sports Direct favour with the help of incentives. Offering a discount or reward

to customers on their first purchase after registering can give them the right motivation to

register at their site. Make these simple design changes on Sports Direct e-commerce platform

and see how its performance improves in a short time.


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6.0 CONCLUSION

With the latest technology on computerisation, communications and system everyone is

connected to each other thus information and update could be exchanged in real time. This

makes every situation is crucial for every individual and organisation in getting the best method

in achieving goals that will benefit all.

Data have been showed statistically with graphs; for example on how Android and Samsung

controlling the global smart phone market.

Knowledge on smart phone usage have been discussed how it benefits its users; fundamental

capabilities to make voice call, video call, SMS, and MMS. In other words, smart phone have

extended list of information processing functionalities such as Wi-Fi, GPS, high resolution

touch screen with ability to access email and Internet, managing personal time schedule, editing

documents and images, and many other applications based on specific function and task.

We have gained on broader understanding the smart phone user consumer behaviour and

mobile commerce. Knowledge and understand the needs, benefits, expectation and objectives

are. From getting just a mere information, we’ve learned on executing tasks from mobile apps

to making online purchases with valid references and practices which is really crucial in

generating business worldwide.

Vast evolving communication and technology has pushed the e-commerce and m-commerce

to a new level. Growth continues across all retail categories, especially with top quartile

retailers. It’s all due to smart phone wide usage in most countries, smart phone are now the

majority in mobile transactions.

We also learned on online payment security measure through Tesco, Jetstar and Sports Direct

discussion. On how credit card is being used for online payment that requires payment gateway

that protect customer from security breach from hackers on identity and information theft issue.

How opening an account with online retailer will help costumer in the long run.

In understanding and analysing processes of e-commerce on Tesco, Jetstar and Sports Direct

have educated us the benefits we gained by performing services that they offered. We could

save a lot of time in doing shopping selection and we could make a better choice before


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purchasing process takes place. Flight ticket purchasing experience could never be easier than

before, with online booking and purchase passenger has the ability to plan easily on travelling

schedule without any difficulties.

Enhancement of e-commerce that have been proposed to Sports Direct shown that there are

still lacking in their e-commerce practice. These proposals once implemented will boost their

e-commerce functionality that will attract more business.

Finally, all topics that have been discussed, analysed and understood is for educational

purposes in comprehending the importance of technology on consumer behaviour, smart

phone, e-commerce and m-commerce which now became really essential to our daily life and

globally whether individually or organisationally.


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7.0 REFERENCES

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http://www.businessnewsdaily.com/4872-what-is-e-commerce.html

2. Turban, E., Volonino, L., & Wood, G.R. (2015). Information Technology for Management

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3. IDC Worldwide Quarterly Mobile Phone Tracker, (2016). Smartphone OS. Smartphone OS

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share.jsp

4. IDC Worldwide Quarterly Mobile Phone Tracker, (2016). Smartphone Vendor. Smartphone

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market-share.jsp

5. Solomon M.R., Bennett R.R., & Previte J. (2013). Consumer Behaviour Buying, Having,

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6. Jisana T.K. (2014). Consumer Behaviour Models: An Overview. Sai Om Journal of

Commerce & Management A Peer Reviewed National Journal.

7. Anthony, S., 2012. There can only be one: Smartphone are the PCs of the future [Online].

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Smartphones-are-the-pcsof-the-future.

8. Payne, K.F.B., H. Wharrad and K. Watts, 2012. Smartphone and medical related apps use

among medical students and junior doctors in the United Kingdom (UK): A regional survey

[Online]. Retrieved from http://www.biomedcentral.com/1472-6947/12/121

9. Kotler and Keller, 2012. Marketing management. 14th Ed., Pearson Education.


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10. Isabella, G., 2012. Influence of discount price announcements on consumer’s behaviour.

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11. The Star, 2013. PM pleased with response to RM200 smartphone rebate [Online]. Retrieved

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12. Russell, J., 2012. Android dominates Southeast Asia’s smartphone market: Report

[Online]. Retrieved from http://thenextweb.com/asia/2012/09/04/android-southeast-asia-

ericsson-report/

13. Osman, M., 2012. A study of the trend of Smartphone and its usage behaviour in Malaysia.

International Journal on New Computer Architectures and Their Applications 2(1): 274-285.

14. Farzana, W., 2012. Consumers’ psychological factors association with brand equity of high

involvement product: Case of laptop. World Journal of Social Sciences, 2(5): 90-101.

15. Suki, N.M. and N.M. Suki, 2013. Dependency on smartphone: An analysis of structural

equation modelling. Jurnal Teknologi 62(1): 49-55.

16. Galgey, W. & S. Pattionson. “The Future Shopper: How Changing Shopper Attitudes and

Technology Are Reshaping Retail.” White paper,the Futures Company/Kanter Retaial, 2013.

17. Criteo, (2015). State of Mobile Commerce. Growing Like a Weed, Q1 2015.

18. Tesco, (2016). About Us. Our Businesses. Retrieved from

https://www.tescoplc.com/about-us/our-businesses/

19. Tesco Malaysia, (2016). Tesco Malaysia. Retrieved from http://www.tesco.com.my/

20. Jestar Asia, (2016). About Us, Retrieved from http://www.jetstar.com/my/en/about-

us/jetstar-group.


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20. Sports Direct, (2016). Customer Services. About Us. Retrieved from

http://www.sportsdirect.com/customerservices/otherinformation/aboutus

21. SportsDirect PLC, (2016). Corporate Responsibility. Retrieved from

http://www.sportsdirectplc.com/corporate-responsibility/employees.aspx

22. IREU Top 500, (2013). Internet Retailing, Sports Direct Unveils 43% E-Commerce

Growth. Retrieved from http://internetretailing.net/2013/12/sports-direct-unveils-43-

ecommerce-growth/

23. DeoVeritas, (2016). Main Page. Retrieved from http://www.deoveritas.com/

23. AirAsia, (2016). Ask. Search. Retrieved from http://www.airasia.com/ask/search-

templates.do

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transition

WORDS COUNTED EXCLUDED REFERENCES IS 8573WORDS.


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Date post:	21-Mar-2017
Category:	Internet
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