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Consumer buying behavior in Thailand

The telephone had taken four decades to attain 50 million people - The Internet has maintained this within four years as digital systems provide such useful stations for business and consumer relationship transactions"

The Internet has changed people lifestyle; it became apart of people lifestyle. They use internet to displace their common activities such as E-mail instead of writing notice, MSN talk and Skype instead of using phone, YouTube rather than viewing television. Therefore, many organisations tried to use Internet as a new way to reach their customers which called 'E-marketing'. E-marketing is a fresh marketing strategy using to reach many consumers at low cost. It could be used to interact with customer 24hrs per day, 7days weekly without any additional expense. Consumer can get information about products any times, any places. Relating to Seock and Norton (2007), consumer channel options for shopping have been widened because of diffusion of the Internet: creating everything that happens to sales in digital form or what it realized as "online shopping". 84 per cent of global consumers have experience purchasing over the internet (Nielsen, 2008).

Number of Thais internet consumption rate is increasing everyday. There are lots of internet companies offer high speed internet. The majority of Thais are aware of using internet in participating in game, interpersonal network like Facebook, twitter but volume of online purchasing is very low. Comparing between European and American to Thai, the amount of online purchasing is very different. Online purchasing continues to be very limited for Thais. They are not familiar with buying things online. Thai consumers want to see and touch and feel the merchandise before making any purchasing decision. With brand product, consumers seem to be to truly have a high participation because it's impossible for them to buy without discovering the real product. They also have not a lot of knowledge to buy thing online because they are afraid to share important information online such as their bank-account, there personal data or their credit card number. At exactly the same time, the number of Thai website that offers online service is very unusual. Therefore there is certainly opportunity to add this service for Thais. This research attempts at learning why Thais consumer do not want to buying brand online.

The aim of this research is to learn what Thai consumer perception toward buying brand name online is and what factors result their decision making. What Thai consumers feature make a brand name online shopping.

The area of this research will focus mainly on Thai consumers in Thailand.

The research aim will be split into five main areas:

To investigate Thai consumer buying making decision toward online shopping.

To investigate Thai consumers' experience on shopping on the internet.

To investigate Thai consumers' belief toward buying brand name online.

To identify the main factors in the buying decision making on online shopping in Thailand

To investigate Thai consumer demographic characteristic who make online shopping.

In research strategy, we will attempt to attain the goal by using quantitative research through online questionnaire. The result of research will help researcher to be able to attain the objective that is placed and help us to find out Thai consumer behavior and notion toward buying online.

Literature Review

In this part, the researcher would like to divide into two parts: The first part will describe a persona of consumer tendencies towards high participation such as buying brand product, what factors effect these to buy online, and consumers' perception toward brand.

The second part will clarify the attribute of online marketing in Thailand.

Involvement

"Some products, such as high-performance car appear inherently involving for their complexity, risk and cost, while others, such as toothpaste seem to be uninvolving in comparison for their familiarity, low risk and low priced"

Laakasonen (1994)

Therefore, buying brand online is like a high-performance car because is too intricate (untouchable product) and risky (imitation product), this can make consumer spend more time in order to find information before deciding. Additionally, a consumer's level of involvement will depend on their individual interests, value of products, needs, which entice or motivate them. Involvement is often defined as the consumer's personal interest in buying or using something from confirmed product field, an approach which effectively summarizes the personal, product and situational components of the relationship (Evan et al, . 2009).

Factor

Customer satisfaction appears to be a key major to impact consumer-buying decision. Customer satisfaction can be the main reason behind customers deciding to produce a do it again purchase, and sharing with their friends about their satisfaction (Palmer 2000). If online store can make customers presumed that their shop has good quality product, secure, and friendly, this would help their shop gain more new customers. Not only online shops give customer a good quality product, nevertheless they should also give them equity. Oliver (1997) identified collateral as "a fairness, rightness or deservingness judgment that consumers make in mention of what others get; additionally it is considered as an important determinant of satisfaction". With these product quality and equity, this might make customers' meet and motivate them to produce a repurchase.

Brand

Brand image appears to be an important for online market area because brand helps consumer make buying decision and it creates a trustworthiness of online shop. Rio del B. et al. (2001) identified brand as "the set of associations and conducts for a brand's customers, route people and that provides that brand a solid, ecological, and differential advantage over challengers. " In Thailand, the customers' perception toward brand product mean high price, which dampens their willingness to make decision toward buying brand name online.

Online market

It appears to be that now the market route has been categorised into two main programs that are online stations and offline stations or we called "traditional channels". Offline channels, consumers reduce of risk on shopping because they can have a physical connection with products, in comparison with online channels. Corresponding to Brown et al. (2003), Whilst shopping on the internet allows the exchanging of value and product by using computer as a medium of business deal transference.

In Thailand, it appears to be that now Thai consumers still like to buy products from offline channel or in retail center anticipated to online channel still don't have a good reliability. Thai online retailer should have to produce credibility and trust to consumer to make them assume that Thai online channel is secure (Mict 2010). It seems to be that in Thailand, many of online retailers appear not to register for doing their business compare to Traditional western country. Moreover, Thailand online payment still unsecure, this make Thai online consumers' do not need to use risk on repayment that is why they would prefer to touch and see product before making buying decision. The main element concerns that consumers have over the web purchasing styles are security of the privacy or financial which relatively unsecure once online repayment has been made, such as credit card scam (Harridge 2006). Furthermore, Roman and Cuestas (2008) stated that 'security on online transaction is need to be strict as to gain trust in the mind of customers regarding their online financial transaction made with the website will be safe form unauthorized access.

Research Question

This research has focused on four main research questions as follows:

Who are online stores' target customers in Thailand?

What is the understanding of Thai customers toward online shopping?

What factors have an impact on Thai consumers' purchasing decisions?

Which is the most crucial factor that affects Thai consumers purchasing brand name online?

Research Method

Research method helps online dealer know which strategies they need to use to affect consumer buying decision. Research method can be classified into two types that are Quantitative research and Qualitative research. Both of these have different benefits and drawbacks, which researcher will discuss more at length down the road.

Data can be gathered in variety of ways, in several settings-field or lab-and from different sources. Choosing strategy is up from what paradigms the researcher adopts. A couple of two main paradigms or philosophies, which are positivist and phenomological (Collis and Hussey, 2003). The choice conditions for positivist are quantitative, objectivist, experimentalist, and traditionalist. The other conditions for phenomenological are qualitative, subjectivist, humanistic, and interprevist. There are several data collection methods, each with the own benefit and negatives.

The research method that researcher will use is Quantitative research, concentrating on the review method. Now, researcher should think about what types of questionnaire should be utilized, such as email questionnaire, digital questionnaire, and personal questionnaire. On this report, scheduled to time limitation, it seems to be that the used of electric questionnaire or online questionnaire will be more suitable and take less time, cost, and can expand very quickly to be able to acquire data than other quantitative research.

After researcher has chosen a specific method, researcher can make a questionnaire by using pilot test in to make sure that all questions can be understand by respondent. If questionnaires have any mistakes or respondents hard to understand, researcher can improve before using to the mark audiences.

Researcher has specific target to make a research that is a Thai consumer get older between 18 and 35 years old and compare between teenager (18-27) and middle age group (28-35). An example size that researcher expect to have is bare minimum 100 respondents, the questionnaire will be distributed through email and internet sites to 200 respondent who've use internet.

In order to make data collection, we will use both principal and secondary data. The secondary data will applied to reserve, journal, article, and commercial online database provide from the website (Mintel, or Google Shcolar). Website offering information for a charge, nearly every industry association, federal organization, business publication, and information medium offers free information to people tenacious enough to find their website (Armstrong and Kotler 2009). The use of secondary offers a good start for research and define problem and objective. This can help researcher and discover an objective for consumer buying decision and belief toward online brand in Thailand. Secondary data helps researcher to better understand and suggested what has been absent form the current web business in Thailand. Additionally, it helps researcher to build up hypotheses and objective of the study.

For main data, a survey research has been chosen as a way of conducting a study, because survey was open to large numbers of population. As a time limitation, using questionnaire can help researcher save time and cost.

After we already collect data from questionnaire, then we can identify that questionnaire is validity, trustworthiness, and genalisability or not.

Roadblock

There may have some limits when make a research, scheduled to limit of their time and budget cost. Additionally, the respondents are required to have a pc access to be able to take part in this research.

Discussion

To sum up, researcher believed that research will help us to know more about Thai consumer's behavior and perception toward online brand name store. The usage of extra data helps researcher can arranged a study question in order to collect an initial data. However, researcher has to choose which research method would like to use in order to collect major data. Because of this, a good method in this article is Quantitative research by using questionnaire to collect primary data. By using questionnaire, it will help researcher to gather data and can analyses about Thai consumers. Due to time restriction of research, the used of questionnaire will helps us to save lots of cost and time. The questionnaire has been sent to 200 via e-mail and social network in order to collect least 100 respondents. Researcher thought that the principal data that we collect can help to do finding and analyses on Thai consumers' buying habit and conception toward online brand name. Moreover, for more information what factor can effect Thai consumer to be able to purchase brand name online.

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