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Identify the critical factors that influence the online shopping pattern for consumers of Apparel products in Bangladesh.

Prepared for: Md. Iftekharul Amin Lecturer Course Instructor (M609 - Market Research)

Prepared by: Monamee Afroze Ishika (Roll: 119, MBA 46 D) Priyom Mozumdar (Roll: 124, MBA 46 D) Mohammad Zulqar Nayen (Roll: 126, MBA 46 D) Mir Zahidur Reza (Roll: 160, MBA 46 D)

Institute of Business Administration University of Dhaka

April 21, 2013

Introduction 1

Statement of Problem: 2 Objectives of the Research: Scope: 3 Methodology: 3 Quality Control Plan: Literature Review 7 7 8 5 2

What is Online Shopping?

What influence the Consumers? :

Online shopping pattern for Apparel Products: 10 Online Shopping in Bangladesh: 11 Data Analysis Plan 13 13

Hypothesis on consumers demographic and psychographic characteristics Hypothesis on the consumers relationship with e-commerce sites Time Plan for Research Work 15 Budget 16 Researcher Profile 18 22 14

Reference and Bibliography

Online purchasing is not entirely a new concept in the market. It has been persistent in the background ever since the Internet was commercially available to the public. Many companies have utilized the Internet as a channel for fashion retail marketing (Murphy, 1998). The significance for retailers to having a web site is that a web site is informational and transactional in nature (Murphy, 1998). The top categories of Online Sales according to ComScore Networks, (Freedman, 2002) are: Computer Hardware and Software Apparel and Accessories Office Supplies Books, Music and Movies Consumer Electronics Home and Garden Health and Beauty Gifting Sporting Goods Toys and Games Autos Pets

In a general view most consumers are still in heavy favor to shopping in stores. There are a number of reasons why consumers are discouraged to shop for clothing online. But the percentage of people purchasing clothing online is rising and it shows no signs of stopping. The factors that are influencing the online shopping pattern for Bangladeshi consumers can also be the determinant factors for the apparel shopping through online. A structured researched can be conducted to identify the critical factors that influence the online shopping pattern for consumers of apparel in Bangladesh.

Statement of Problem:
The internet has revolutionized the lives of millions of its users since its inception. Our research explores one aspect of this revolution that is the growing use by businesses and individuals as a retail channel for apparel shopping in Bangladesh. Apparel Shopping is special in a sense that many predicted it would be difficult to sell online. There are several critical factors that influence the buyers to go for online shopping for apparel product through different websites. Thus this descriptive research intends to identify these influential factors on Bangladeshi consumers for online apparel shopping. So the problem statement for this research is Identify the critical factors that influence the online shopping pattern for consumers of apparel products in Bangladesh.

Objectives of the Research:

This research work on online shopping pattern for apparel products for Bangladeshi consumers will be conducted based on two categories of objectives. They are, Broad Objective: This research will be conducted to identify and analyze several important factors which influence the online shoppers in Bangladesh who do apparel shopping online. Specific Objective: The specific objectives of this study includes, o To identify if demographic factors of consumer has any influence on online apparel shopping o To identify if psychographic factors of consumer has any influence on online apparel shopping o To know about aspects most and least enjoyed by the consumers while using the online shopping facility o To identify the relationship between web site design and facilities and online apparel shopping pattern o To gain information on reasons and motivations for not shopping online for apparel products o To know what are the personal concerns regarding online apparel shopping for consumers o To examine the relationship between customers trusts and online shopping activity.

o To examine the relationship between website quality and online shopping activity. o To examine the relationship between consumers level of internet knowledge and online shopping activity. o To examine the relationship between internet advertising and online shopping activity. o To determine which of the above factors contribute most to online shopping.

The scope of the research will be limited to the demographic, psychographic factors of consumers that are influencing online shopping pattern in Bangladesh. The scope of the study will also include the web site characteristics that can influence the pattern. The population of the research will be limited to urban residents who have internet access and do frequent online activities throughout the day. The sampling method, data collection technique and sample size will be selected considering time and budget constraints.

Research Design: This will be a cross-sectional descriptive research which will work with several qualitative and quantitative methods to come up with findings. While conducting this research, the team will follow systematic steps for effective execution of the work. Different variables will be described and relationship among them will be measured throughout the research. Sources of Data: The data will be collected from different qualitative and quantitative sources which in a broad sense can be divided into two categories, Primary Source: These will be the first hand information sources from which both qualitative and quantitative data will be collected. For getting understanding and insights the qualitative data will be collected and for this the research team will conduct a focused group discussion. Survey will be conducted among specified sample to get the quantitative data for the study. o Focused Group Discussion (FGD): The focused group will consist eight (8) undergraduate university students, who are frequent online browsers, very fashion sensitive and aged between 18-23. Questions will be generated by the researchers and posed in a consistent manner to the focus group. The topics in the focus group discussion will include prior experience with shopping online, satisfaction with shopping online, fashion orientation, and general behaviors

with respect to shopping for apparel. The discussion will last for 1.5 hours and remuneration and refreshment will be provided to the focused group member. This group is selected as the focus group as people of this age group are the most internet savvy and conscious with fashion and style. Based on focus group responses, specific benefits and risks related to online apparel shopping will be identified and included in the survey instrument. o Survey Design: From the target population, sample will be drawn to conduct the survey with the structured questionnaire set. The survey will be conducted by the four researchers through the personal interview method. The respondents will be interviewed with the combination of two personal interview methods, one is face to face interview done by the researchers and also computer-assisted personal interviewing (CAPI). The CAPI method will be administered through the Google Doc application. Target Population: The target population for this survey will be the people residing in urban areas with internet access and frequent online activities. Estimating the size of the population is difficult as the team has yet to find valid information on active and potential online shoppers in urban areas. Sampling Frame: The sampling frame is divided according to the occupational characteristics of the population. The frames are, Undergraduate students in different institutions in cities in Bangladesh Post graduate students in different institutions in cities in Bangladesh Employees working in different local and multinational companies in Bangladesh Housewives residing in urban areas in Bangladesh with internet access at home

Sampling Unit: Individual person who has internet access and frequent online activities and who fits with the sample frame. Respondents will not be limited with age and gender constraint. Sample Size: As the research is of descriptive type, the more the number of sample element will ensure more precision of data. In this type research for factors identification the minimum size required is 500 respondents as a sample. From the related literature review, it was found out the researchers for other related researches considered sample size

ranged from 400 to 1000. We have a time constraint for this study, thus we will fulfill the minimum requirement and survey 500 sample elements from the population. Sampling Method: Non probability sampling technique will be chosen as sampling method. We will be taking samples from online panels. These panels are composed by individuals who have expressed interest in participating in surveys, leaving out individuals who may be part of the target population, but are not available for interviewing through the panel. Since we will be posting a link to our survey on social network sites, it may not be representative of the target population. Here what we are doing is convenience sampling, not random sampling. So the statistical accuracy cannot be measured. However, we will try to incorporate judgmental sampling. It is a form of convenience sampling but the researcher team will use their judgment to increase the representativeness of the sample. The elements will be selected on the judgment criteria, such as education, occupation, internet usage, fashion sense etc.

Secondary Source: We will collect data from the following secondary sources: 1. Literary publications (e.g.: Conference papers, journals) 2. Research Reports on related topics 3. Online shopping websites

Quality Control Plan:

It is very important for the findings of the research to be accurate to control the quality of the data gathered from different sources. The research team will make sure both focused group discussion and survey will be conducted professionally and reliably. For this quality control purpose, o The judgmental sampling method will be conducted very professionally for better representation of the population. o Focused group discussion will be moderated to ensure right type of data accumulation in the short time. o Questionnaire will be simply written which will be clear and understandable by the respondents. o Close periodical supervision of the automated survey entries will be maintained.

o Data entered manually in SPSS by one member will be checked by other members for accuracy purpose.

What is Online Shopping?
Online shopping is a form of electronic commerce that gives consumers opportunity to directly buy goods or services from over the Internet using a web browser. The first World Wide Web server and browser, created by Tim Berners-Lee in 1990, opened for commercial use in 1991. These days, the largest of these online retailing corporations are eBay and, both based in the United States. Immediately after, launched its online shopping site in 1995 and eBay was introduced in 1996. In recent years as e-commerce sales have increased compared to traditional stores, many businesses and individuals have turned to online shops. Electronic commerce is now a means for business growth and expansion in relation to both small and large firms irrespective of their geographical locations. The popularity of online shopping largely depends on the accessibility of internet over different countries. At the closing of 2008 almost 1,596 million people or 23.8 % of overall populations of the global had access to the Internet. Asian countries news report for 474.9 % increase, it has overall internet user stands at 657 million or 41.2% of worlds full internet user. Only in China more than 420 million people are using the internet (Internet Usage and Population Statistics 2010). The internet population style of Bangladesh is also contributing to the development of Asian countries which assured 450% development in the period of 2000-2007. Bangladesh has launched high-velocity internet connectivity through submarine superhighway in 2005. Establishing the internet procedure in 1993 it is still in its primary level. The growth of online shopping is increasing at a high rate over time. Online shopping for B2C product sales totaled $142.5 billion, representing about 8% of retail product sales in the United States in 2012. The $26 billion worth of clothes sold online represented about 13% of the domestic market, and with 72% of women looking online for apparel, it has become one of the most popular cross-shopping categories. Forrester Research estimates that the United States online retail industry will be worth $279 billion in 2015. There were 242 million people shopping on-line in China in 2012. On the other hand, for developing countries and low-income households in developed countries, adoption of online shopping along with conventional methods is limited by lack of affordable internet access.

What influence the Consumers? :

Freedman (2000) points out that there are different types of shoppers. The four types of Online Shoppers she has pointed out are as follows: Online Aggressors: The characteristics of this type of shopper is that they are online daily; a technology embracer and buy most items online where and when possible. Online Adopters: This type of shopper pre-plans purchases; tend to or likely be a catalogue shopper; Shop online where it fits neatly into their life. Purchases mostly commodity products online; Utilizes Web as price and product comparison engine, Embraces gift giving where tools are available from trusted merchants. Online Opportunists: This shopper shops from both catalogue and stores, based on convenience. Evaluates shopping options and varies behavior by category. Typically buys in-store with limited catalogue purchasing. Normally researches product information online. Online Alienate/Agitated: This type of shopper tends to prefer to shop in-store. May shop from catalogues on an infrequent basis. Normally a technophobe by nature. Security central to their resistance to shop online. May test online shopping to keep up with the world.

Cheung, et al. (2000) pointed out framework of online consumer purchase and showed that on line purchase intention, purchase adaptation and purchase continuance depend on consumer characteristics (life style, motivation, knowledge, innovativeness, involvement, demographics), product/ service characteristics (product knowledge, product type, layout, frequency of purchase, tangibility, differentiation, price),medium characteristics (web design, navigation, ease of use, interface usefulness, reliability, security),merchant and intermediary characteristics (service quality, privacy and security control, brand reputation, delivery /logistics, after sale service, incentive) and environmental influences (culture , subjective norm, exposure , attention, image).

The main reasons why consumers prefer to buy online are cited below: Reasons Shoppers Cite for Buying Online Save time by not going to store Can shop when stores are closed Avoid the holiday crowds Might be able to find better prices Can find products online more easily Find products not available in stores Easier to compare prices Have gifts sent directly to recipient Can avoid wrapping gifts Can earn loyalty points Purchase from wish list

70% 69% 68% 59% 52% 50% 47% 36% 13% 13% 10%

Table 1 Reasons Shoppers Cite for Buying Online Source: Jupiter Research/IPSOS (Greenspan, 2003)

A successful web store cannot just be a good looking website with dynamic technical features it should also be concerned about building a relationship with customers and making money. Customers are attracted to online shopping not only because of high levels of convenience, but also because of broader selections, competitive pricing, and greater access to information. Customers attitude towards online shopping also depends on his or her perception about the benefits, consequences, privacy, security and willingness of interactions (Limeyem, et al. 2000; Shih, 2004; Wu, 2003). The life style and personality also affect the attitude of customers attitude towards online shopping (Wu, 2003). Business organizations need to focus on this issue of customers. The activities and services of the organization and security and privacy condition of online transaction will motivate customers for online shopping. Out of personal privacy considerations, a great portion of the consumers has reluctant attitude towards online shopping (Wang 2008). Customer needs and expectations are different according to individual customers as age, gender; experience and culture are all important factors. For example, Japanese cultural norms may lead users there to feel privacy is especially critical on shopping sites and emotional involvement is highly important on financial pensions sites. Generally, higher levels of education, and personal income, correspond to more favorable perceptions of shopping online. Although external factors affected the personal conduct to some extent, the purchase would ultimately depend on the individual. These needs and


desires must be satisfied by consume. Once consumers faced the appropriate context, consumer decision-making process would be initiated. (Wang, 2008). To increase online purchases, businesses must expend significant time and money to define, design, develop, test, implement, and maintain the web store. Role of social culture and media is important for developing positive intention for online shopping (Limayem et al., 2000). Advertisement, focus group discussion and role playing by socially respected and accepted person can be influential for developing social support for online shopping that ultimately motivate people. (Howladar, 2012). Financial risk is significant for developing online shopping plan (Koyuncu & Bhattacharya, 2004; Swinyard & Smith; Shankar, et al. 2003). Security and privacy are also influencial variables that influencing the customers preference for online shopping (Miyazaki & Fernandez,2001;Vdo,2001,Shankar, et al. 2003;Zhou, et al. 2007). Product and services are also very important for motivating customers intention to purchase through online (Chiang & Dholakia, 2003).

Online shopping pattern for Apparel Products:

The Internet has emerged as a compelling channel for sale of apparel products (Beck, 2000). Online sales of apparel and accessories are now growing faster than any other ecommerce product segment. The category is reponsible to help US retail ecommerce sales grow 15.4% to $224.2 billion in 2012, after stronger-than-expected sales took the market to $194.3 billion last year. Measurement from Nielsen//NetRatings indicated that shopping sites were amongst the most popular destinations for women Internet users, particularly for clothing web sites. In Europe, more than a third, 35 per cent, of shoppers bought their clothes online in the last 12 months, up from 26 per cent the previous year, according to the report by Mintel, the market research company. In Western Europe sales are expected to reach 14 billion euros ($155.7 billion), a growth of 11% percent annually. Apparel, computers and consumer electronics will continue to be dominant purchases; these three areas make up 40% of the current online sales which won't change in the near future. A recent survey by Google India and TNS has found that online shopping more than doubled in India in 2012. Lifestyle products, including apparel, accessories, home decor, beauty and cosmetics account for the highest search volumes on Google. Apparel and accessories are expected to overtake the online search for electronic goods in 2013. During 2013, eight of 10 people purchased apparels and accessories while seven out of 10 purchased electronic goods. Although online apparel shopping continues to grow worldwide, there are problems why consumers hesitate to shop for clothing online. There are a number of reasons why consumers are discouraged to shop for clothing online. Table 2 highlights some of the reasons consumers are unenthusiastic of Online Apparel Shopping.


Problems with Shopping for Clothes Online Unable to try on clothes for fit 81% Unable to feel clothes for quality of material 45% Concerned about return difficulties 44% Concerned about privacy of personal information 32% Total cost of purchasing products is more expensive than stores 25% Difficult to browse 14% Like to shop with friends/family 11% Difficult to get customer service 8%

Table 2 Problems with Shopping for Clothes Online

PricewaterhouseCoopers 2000 (Pastore, 2000)

Online Shopping in Bangladesh:

The Peoples Republic of Bangladesh is a developing country in South Asia. It's an over populated country in the global village, people living in small physical size, social homogeneousness, forward-looking infrastructure and banking, the logistics, communications, and payment costs linked with ordinary and Internet-based shopping tend to downstairs and similar (Bhowmik, 2012). The Modern act allows people to apply local currency credit cards for online transactions within the country. Bangladesh government has announced information technology as a thirst sector of the country and launched countrys vision to build digital Bangladesh by 2021. The political government has also realized some changes in the national ICT policy 1999 which restates establishing ecommerce by 2012 and e-governance 2014. (Bhowmik, 2012) Among the contextual factors medium characteristics and merchant & intermediary characteristics are the primary considerations to develop the online shopping culture in Bangladesh (Howladar, et al. 2012). The telecommunication technology and internet technology is not developing in Bangladesh with satisfactory pace. Though Internet in Bangladesh has grown rapidly in the last few years but still the access to the internet is very limited for several reasons. Parvin et al., (2007) also mentioned that the commercial use of internet is limited due to the band width limitation. Wood (2004) also specified that growth in internet use in several developing nations in the Asia pacific region (e.g. Bangladesh) has been stalled by lack of sufficient telecommunications infrastructure, inexperience, indifferent, and bureaucratic government.


The Demographical characteristic in Bangladesh has mix of positive and negative feelings and also a critical factor for influencing online purchases. But young generation accounting for more than 35% of the total population gives Bangladesh an edge to choose online shopping (Laisuzzaman, et. al., 2010). The high income and educated people who are the major customers of online shopping live in major town in Bangladesh where network infrastructure is comparatively better. Physical, economic, educational and social cultural factors also influence the individuals access to and use of ICTs in Bangladesh (Parvin et al., 2007). These constitute environmental factors that influence online shopping behavior. Legislation is one of the important obstructions in our country to develop online shopping culture. Again, currently e-commerce vendors are not providing sufficiently reliable level of service to meet the expectations of their consumers, and this is leading to negative perception of the e -commerce shopping experience (Dey et al., 2009). In Bangladesh, sufficient IT experts are available, but need coordinated effort by the government, private and public organizations, and financial institutions to develop secured and effective internet infrastructure for better environment of online shopping. (Howladar, 2012).



Exploratory Study was done for the literature review part to get initial insight of overall scenario. For further research work Descriptive study combining both qualitative and quantitative methods will be done. Information gained from Focus group discussion will be analyzed and interpret in such a manner that will help us to get insight on present scenario and thereby help us construct the survey questionnaire. From the self administered questionnaire resided in Google Docs Survey Application, data will be automatically entered into an excel spreadsheet. With Excel, initial statistical information will be gained along with basic graphical representation. After that, the data will be entered into SPSS software for further analysis. The following hypothesis will be tested with the software. The hypotheses have been classified into two types:

Hypothesis on consumers demographic and psychographic characteristics

Hypothesis Perceive ease of use, personal awareness of security, perceived usefulness, perceived risk and trust has no significant impact on attitude towards online shopping. There is no difference in attitude towards online shopping when segmented by gender There is no difference in attitude towards online shopping when segmented by age There is no difference in attitude towards online shopping when segmented by education There is no relationship between attitude towards online shopping and online shopping intention Technique Used Multiple Linear Regression

Independent t-Test Analysis of Variance(ANOVA) Analysis of Variance(ANOVA) correlation


Hypothesis on the consumers relationship with e-commerce sites

This part of the study aims to identify factors influencing consumers towards online shopping. It seeks to examine and understand whether factors such as customer trust, website quality, internet knowledge and internet advertising influence consumer choice of online shopping.

Hypothesis There is no significant relationship between customer trust and attitude towards online shopping There is no significant relationship between website quality and attitude towards online shopping There is no significant relationship between level of Internet knowledge and attitude towards online shopping There is no significant relationship between interactive internet advertising and attitude towards online shopping

Technique Used Correlation

Correlation Correlation


From the result of the hypothesis tests along with other statistical information gained from data analysis findings will be drawn and interpreted.



Task Proposal Submission Focus Group Discussion Data Analysis (FGD) Questionnaire Planning Online Survey Offline Survey Data Entry into SPSS Data Analysis Report Writing Printing and Binding Report Submission

Start Date Duration (Day) 20-Apr-13 24-Apr-13 25-Apr-13 27-Apr-13 29-Apr-13 3-May-13 8-May-13 10-May-13 15-May-13 20-May-13 21-May-13

1 1 1 2 7 4 2 5 5 1 1

Gantt Chart


Budget In the course of conducting the research and eventually preparing the report it, there is a need to set and determine an estimate for the budget required for such an undertaking. It has come to light that the costs associated with such a research may vary in magnitude. Focus Group Discussion: Focus group discussion will be held for one day to gather qualitative data from representative people. The discussion will require a substantial amount of expenditure. An overall estimated cost is 2300tk, including remuneration and refreshment. Printing and Binding: The need to print the questionnaire for offline survey and distribute it to people who might not fall into the online survey panel that would use a computer on regular basis to answer our online based questionnaire will need additional expenditure. Again after the completion of report writing, the printing and banding will also cost some fund. The budget for this is estimated around 400tk. Transport Expenses: In order to reach the desired locations necessary for the data collection for our research, transportation costs is a major part of the whole process. The amount needed for it will depend on the urgency for the journey and the distance travelled. The amount can be estimated to be around 1000tk for all the researchers over the research period. Internet and Phone Bills: Since most of the work will be done through collaboration through online tools, it will be necessary for internet connection and the bill associated with it. Even though not all the amount will for the internet use regarding the research, it still can be estimated that for the researchers, the average internet cost will be around 300tk. The phone bills are also a crucial part of the budget and have been estimated to be around 200tk as well. Contingency Fund: This will be needed if Google Doc becomes unavailable; the research team may have to opt for alternative online survey provider and may have to import survey data.


For this research work, the expenses need and the categories are can be summarized as following, Reason Printing (Survey Questionnaire Report Printing and Binding Remuneration (Focus Group Members) Refreshment (Focus Group Discussion) Transport Expenses Internet and Phone Bills Contingency Fund ( If Google Doc becomes unavailable, we may have to opt for alternative online survey provider. In case that happens, we may have to import survey data) Total Fund Needed BDT 200 ( 100 @ BDT 2.00) BDT 200 BDT 1800 ( 6person @ BDT 300) BDT 500 BDT 1000 BDT 500 BDT 1000

BDT 5200



Monamee Afroze Ishika

66, New Circular Road, Dhaka-1217. Phone No: 88-02-9361387(Res), 88-01913501060(Mob) E-mail:

Degree Institution MBA IBA (Dhaka University) Year Ongoing Major Marketing Board CGPA/GPA 3.73 (after 3rd semester) Marketing & Finance Science Dhaka 3.96 (out of 4.00)


BRAC University 2010


Viqarunnisa Noon College YWCA Girls High School


5.00 (out of 5.00)





5.00 (out of 5.00)


Worked as a Research Associate under the project Implementation of Monitoring and Evaluation (M&E) for IFC Bangladesh on behalf of Associates for Development Services Limited (ADSL) from 20th September, 2012- 15th December, 2012. Worked as a Survey Supervisor for data collection in connection with Core Group Study under the project Implementation of Monitoring and Evaluation (M&E) for IFC Bangladesh on behalf of Associates for Development Services Limited (ADSL) - June, 2012.



Priyom Mozumdar
Contact: +88-01818-074889

Degree MBA Institution IBA (Dhaka University) Bangladesh University of Science and Technology Chittagong College Collegiate School, Chittagong Year Major Board CGPA/GPA 3.20 (after 3rd semester) 2011 3.06 (out of 4.00)

Ongoing Marketing

B.Sc in Chemical Engineering H.S.C S.S.C

2005 2003

Science Science

Dhaka Dhaka

5.00 (out of 5.00) 4.88 (out of 5.00)


Field Research Assistant Nielsen Bangladesh Senior Project Officer Renata Limited Intern Chittagong Urea Fertilizer Limited (CUFL) Jan 2013 Ongoing

Mar 2011 July 2011

April 2010



Mohammad Zulqar Nayen

+88 01720 211 832 258/A, Flat: A3, New Elephant Road, Dhaka 1205

Degree MBA Institution IBA (Dhaka University) Bangladesh University of Science and Technology Notre Dame College, Dhaka Government Laboratory High School, Dhaka Year Ongoing Major Marketing Board CGPA/GPA 3.53 (after 3rd semester) 2011 3.53 (out of 4.00)

B.Sc in Electrical Engineering H.S.C




5.00 (out of 5.00)





5.00 (out of 5.00)


2011 Chartered Accountants Business IT Analyst OCTOKHAN 2010 -



Mir Zahidur Reza

+88 01717922890 Apt: 5A, Lake Drive Road, Sector 7, Uttara Model Town, Dhaka 1230.

Degree MBA Institution IBA (Dhaka University) American International University, Bangladesh International Turkish Hope School International Turkish Hope School Year Major Board CGPA/GPA 3.20 (after 3rd semester) 3.3 (out of 4.00)

Ongoing Marketing

B.Sc in Electrical Engineering A Levels O Levels


2007 2005

Dhaka Dhaka

4 As (5.00/5.00) 7 As (5.00/5.00)



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