The Views Of The Customers Regarding The Online Importing Of Vehicles From Japan

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This research is aimed at acquiring the views of the customers regarding the online importing of vehicles from Japan and to identify the factors that supports/prevents or enhances/lessen the confidence of the customers while dealing entirely online. The purpose is to identify the factors so that they can be worked on and managed well to enhance the trend of online automotive dealing in the near future and also equipping the customers a reason to buy online.

Research method/sampling

Primary research method was taken in account that facilitated the responses of the customers. A proper close-ended questionnaire was posed to 64 customers; who were new to the business, were experienced, and were students, employees and also businessmen. Research responses were recorded on Google docs and research sampling totaled to convenience sampling.

Findings of the research

There were a total of five factors considered in the research, such as Cost effective process, Variety of information, Customer service, reliability and customer ratings that can influence the purchase decision of the customers. Out of the five, Reliability and Customer ratings were derived to be really crucial and essential by the customers.

Practical implications of the research

Reliability and Customer ratings were derived to be really important. In this research, Reliability is meant by the safe and secured transfer of funds to the beneficiary institution (SBT Japan) without any fraud or scam, and trust can be evaluated by the customers as to how the company provides services. If a customer is satisfied then he will share his positive experience to other customers which ultimately enhance the confidence of the customers towards the online buying of vehicles

Keywords: Customer confidence, reliability, variety of options, customer service, customer ratings, cost effective process

Introduction

Problem Background

Today the markets and industries have been globalized equipping customers with numerous alternatives, from which they can select one or few depending on their priorities such as quality, price, features and specifications. Customer now has become savvier and knows best to use the technology to get benefit from, as the technology is available and almost everyone is updated with it, then, why only few are motivated to buy cars online? Why most of the people use internet only to view items posted? Why many consider this medium (internet) a better way to obtain information than actually making a purchase?

Aim of the Study

The aim of this study is to identify the prominent factors that enhances customer confidence or prevent them from buying cars online and also to suggest the measures, if managed well can enhance the rate of online car buying.

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Concerns while dealing online

O’Keefe et al. (2000) and Tan & Thoen (2001) indicated the prominent reason of dealing online can be of trust and the security of funds transferred, as the trust remain the most crucial concern, because the shop is unknown, customer doesn’t know the salesperson dealing with and also unaware of the funds, whether transferred to the beneficiary or not? Besides that there are also some beneficial factors (such as cost effective process, variety of alternatives available, reliability of the process, customer service and customer ratings) associated with the online purchase that influence the customer confidence towards buying cars online. Such influences can either be positive or negative depending upon the previous experiences. One, who experiences its influence as positive, makes repeat purchases, whereas those experiencing its negative aspect won’t buy and also will prevent others from investing in the business again.

Requirements while dealing online

Cheung & Lee (2000) and Jarvenpaa et al. (2000) highlighted few requirements and also issues associated with consumers dealing in an online and offline environment. In online buying, it is a preliminary requirement for the consumers to have the technology to communicate with the store owner for the purchase of the product, besides that a high level of trust is requisite in an online shopping environment than physically acquiring products. Trust and reliability both remain important concerns for the individuals dealing online, as the shop is unknown, product quality is unknown, reliability of the online model is unknown, salesperson dealing with customers is unknown and company’s visibility is beyond access.

Limitations of the Study

  • This study is limited to the customers of SBT Japan Karachi only
  • Due to shortage of time only Karachi was targeted
  • Another limitation to this study was of the money constraint
  • Furthermore, customers were targeted from different regions but within Karachi, no customer outside Karachi was targeted

Objectives of Study

The objectives of this study are to identify the factors that influence either positively or negatively the customer confidence towards making a decision of purchasing cars online from SBT Japan. Once the factors are extracted and identified, firms dealing online can use them as a base to enhance the rate of online car buying in Karachi.

Ethical Considerations:

  • Equality was given to both genders (males and females), as their views were entertained and recorded properly.
  • While conducting research ethical steps were considered, as the personal data such as their contact numbers, home addresses and personal details were not disclosed.
  • Participants actively participated in the research by solving the questionnaire posed to them (containing their views regarding online buying of vehicles)

Literature Review

Significance of Internet

Pyle, 1996; Jones & Visayasarthy (1998) supported the prominence of internet by discussing the era of its initiation, since from its beginning, it appeared to be really effective as it targeted various factors such a accessibility, global reach, high level of interactivity, speed, flexibility, large amount of information available, cost effective & efficient process and maintenance. Moreover, Doherty & Ellis-Chadwick (1999), highlighted the fact that retailers have realized the importance of Internet to share information, provide or to receive updated information, involves two way communications with customers (where their queries are entertained by the salesperson especially employed to deal with the customers), collecting of market an research data, promoting of goods and services, in short, when it comes to online retailing it offers an effective, rich and full of flexibility to its customers. As per Pyle (1996), internet opened door to the global connectivity that aids the avenues for business that even not comparable to the benefits extracted from traditional commerce. Moreover, Joines, Scherer & Scheufele (2003) underlined the era of arrival of internet, as when it was introduced it gain popularity, and now if we analyze by looking at the trend of internet users we can observe a rapid increase in its count that gives rise to the opportunities of online shopping, as customer are no longer interested in visiting stores to make purchase as they can do that through online models at any time and at any place.

Vesterby & Chabert (2001) supported the fact that internet medium really makes it easier for the owners to share information regarding their products and service offerings to their potential consumers. A company can meet the individual needs and requirements of the customers more specifically as it the vastest medium which covers almost the whole population, besides that there is low cost associated with the disclosing of information regarding the products and services a company deals in. Furthermore, they also identified the most crucial issue relevant to online shopping, that is, a company should market its products aggressively else they won’t be considered by its potential customers. As the physicality is not present in the online models restricting customers to physically view the items listed. Information regarding companies has been global and information technology by supporting its flow, equips consumers with the accessibility of information regarding products and services available online anywhere and anytime.

No doubt, Internet has gained enormous success in case of individual or business purchases, if we look few years back we will observe the issues associated with the online dealing that restricts the businesses to expand, some of them even exists today, for example, Cockburn & Wilson (1996) identified lack of security in online sites that prevents clients and business to on board or to benefit them from this medium, as the security of transferring funds is a serious and sensitive issue due to the lack of the suitable online payment systems. Furthermore, Jones & Vijayasarathy (1998) supported the views of Jones and Vijayasarathy by identifying the security in Internet retailing as the most severe.

Consumer Behavior

Engel et al. (1995) and Schiffman & Kanuk (2000) discussed insights regarding the consumer behavior in detail by identifying and studying the frameworks that are designed to know the consumer behavior more specifically, thoroughly and also help in knowing briefly as to how a consumer makes decision of purchasing online? These frameworks identify the decision making processes of consumers that initiates from identifying the need and ends up at post-purchase evaluation. Besides this there are more stages (pre-purchase search, evaluation of alternatives, the actual purchase) that effects customer’s decision making process and push him towards purchasing products online. In short we can conclude that there are five stages that capture the essence of the customer while making a decision of buying online. O’Keefe & McEachern (1998) pointed the fact about these frameworks that they can be applied to both ways of buying (traditional and online) products and not limited to either traditional or online way of purchasing. Therefore, we can use this framework to know the online consumer behavior more briefly.

O’Keefe et al. (2000) and Tan & Thoen (2001) discussed that there are two issues that are associated with the online consumers and also differentiates them from offline consumers. First consumers dealing online must have the technology to deal with the salesperson online. Second a higher degree of trust is required in online buying, as the beneficiary institution is unknown, the funds transferred through the medium is unknown, the reputation of the firm is unknown. These are the critical issues that a consumer always thinks before availing the online option of buying. Hence we can say that physical shops have now been transformed into electronic or virtual shops. Haubl & Trifts (2000) discussed the importance of Technology by disclosing the fact that it gives birth to a cost-effective process of searching information regarding the product and also help in evaluating the alternatives available, it aids in making the right decision.

Crucial insights while dealing online

Online Marketing has quickened its pace; previously customers were interested in knowing about the products and paying against to acquire them. Such products were limited only to low value items (such as buying blankets, computers, LCDs, clocks, watches, apparels and even mobile phones). Let’s transform this research towards the grounds of high value items (such as laptops, machines, generators and even automobiles). Can the trend of customers towards products purchasing online differs or remains constant in the case of low value or high value items? Whether the products are of high or low value, it utterly depends upon the customers, as according to them which sort of products lay under the category of high value or low value items?

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