Factors Affecting Klang Valley Online Shoppers

Introduction

This chapter will mainly discuss about the background of the research, problem statement, research question, research objectives and significant of the study. This chapter focus on the problem statement that motivates the researcher to further analyse the issues. Moreover in this topic contain research question, research objective, the scope, the limitation of study and the significance of the study.

Research Background

The development of internet is give big impact in many aspect especially in social and economy. The first internet provider in Malaysia is Jaring in 1990 and in 1996 change to TMNET (Harn, Khatibi, & Ismail, 2006). In this era have many internet provider in Malaysia and user use internet for many purposes. The online shopping has become common practice, in which the seller cannot see the arrival item and the buyer cannot see the money transaction. The successful of the online shopping comes from the consumers and sales as a trusted third party intermediary to help complete transection. Online banking is the most popular method in online shopping but the third party payment also becomes hot issue in online shopping.

What is third party payment?

Third party payment is a business transaction involving a buyer, a seller and a third party. The third party payment provides safe and fast payment method for both parties. Today, there are many of online and mobile store that provide the customers to make payment using third party payment platform. Third party payment is convenient to use but in rate in Malaysia still lower compared to other country. Generation x is one of the popular targeted segments due the population size and high purchasing power. Therefore, it is important to understand their intention to use the third party payment.

Problem Statement

In Malaysia due to the development of the internet, there has been trend of cooperation between the financial service industry and the technology industry. The obviously change is the operation model and innovative payment. Payment model is payment for online shopping include payment the payment on delivery, the ATM transfer, the payment and pickup in supermarket, and the credit card. Moreover, have another payment model which is third party payment. The third party payment emerged in response to the wave of online shopping and serves as an option for customers. According Malaysian Communications and Multimedia Commission (2017) the user of internet is 76.9% and non-user is 23.1% and the higher from device smartphone user which is 89.4%. This penetration rate had obviously changes in the operation model and innovative payment. Payment model is payment for online shopping include payment the payment on delivery, the ATM transfer, the payment and pickup in supermarket, and the credit card. Moreover, have another payment model which is third party payment.

The third party payment emerged in response to the wave of online shopping and serves as an option for customers. The third party payment have own value because it facilitate by sellers and customers to fill the trust gap between both parties. Today, the internet has been frequently utilized, but based on survey wireless network in Taiwan showed that people worried about the privacy of surfing the internet with mobile phone. The privacy, financial safety and trust related to consumers intention of using third party payment. According to Lieberman & Stashevsky (2002) they believed that consumers would be influenced by benefit and risk in online shopping. (Bauer 1960) argued that any consumer behaviour might lead to uncertain or unexpected results, so consumers often had to decide which payment was the least risky to reduce uncertainty. It can be seen that consumers are still worried about the hidden risks in the third party payment and that influence the intention in using third party. Therefore, this study is part of initiative to analyse the factors that may effects the confidents of buyer in online shopping.

Significance of The Study

This study is proposed to evaluate the factors that affecting the confident the use of third party payment by Klang Vallley online shoppers. Besides that, it also comes with importance to the following groups:

Online shoppers

This research can be great indicator to user of third party payment because they may ignore some his kind of this problem and not take this problem seriously. This research, they will provide them with new information and factors that affect the confident to using third party payment.

Future Researchers

It is important to have information about factor influencing the confident using third party payment. The knowledge and understanding gained by this study can be useful to the future researcher who will carry the same topic of the confident level in using third party payment with other variables maybe1. Government / Third party provider. The results may enable them to assess and evaluate their own selves to the main factor that influence the confident of using third party payment. This will also help them to make decision to improve their management or services which will give them the better skill of organizing next prevent the services.

The study focus on perceived risk, perceived benefit, social influence, and network involvement which are dependent variable and intention to use third party payment of the independent variable. The questionnaire will be collected from September until October. The research will be covered among online shopper in Klang velly. Respondent It is not easily and quite expensive to reach the respondent as this study is using questionnaire. On top of that some respondent is not participating to answer the question truthfully. The time given to complete this study is within 4 month only. The collection of data is limited due to limited of time to complete this research.