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Factors Influencing Customers' Choice of Online Shops in Kenya: a Case of Jumia

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Factors Influencing Customers' Choice of Online Shops in Kenya: a Case of Jumia Strathmore University SU+ @ Strathmore University Library Electronic Theses and Dissertations 2019 Factors influencing customers’ choice of online shops in Kenya: a case of Jumia Shaffi S. Bachoo Strathmore Business School (SBS) Strathmore University Follow this and additional works at https://su-plus.strathmore.edu/handle/11071/6672 Recommended Citation Bachoo, S. S. (2019). Factors influencing customers’ choice of online shops in Kenya: A case of Jumia (Thesis, Strathmore University). Retrieved from http://su- plus.strathmore.edu/handle/11071/6672 This Thesis - Open Access is brought to you for free and open access by DSpace @Strathmore University. It has been accepted for inclusion in Electronic Theses and Dissertations by an authorized administrator of DSpace @Strathmore University. For more information, please contact [email protected] FACTORS INFLUENCING CUSTOMERS’ CHOICE OF ONLINE SHOPS IN KENYA: A CASE OF JUMIA BY SHAFFI SIMIYU BACHOO MBA/99678/2017 A DISSERTATION SUBMITTED TO STRATHMORE BUSINESS SCHOOL IN THE PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION MAY, 2019 DECLARATION I declare that this research is my original work and has not been previously submitted and approved by Strathmore University or any other Institution for the award of a degree. To the best of my knowledge and belief; this research is original and borrowed materials has been done with due reference. © No part of this project may be reproduced without the permission of the author and Strathmore University Shaffi Simiyu Bachoo May 2019 Approval This project has been reviewed and approved for examination purposes by the following: Dr. Nancy Njiraini (Supervisor) Strathmore University Business School Dr. George Njenga Executive Dean, Strathmore University Business School ii ABSTRACT Online shopping is considered to be a very convenient and helpful way of buying products and services through the internet. Consumer needs to make a decision when they want to purchase from the websites selling identical products. The main objective of the study was to establish factors influencing customer’s choice of online shops in Kenya, with special focus on of Jumia. Specific objectives were; to determine the influence of personal characteristics, consumer attitudes and convenience on choices of online shops in Nairobi County. This study adopted a descriptive research design. Study target population was 10,000 online customers with a sample size of 385 online customers. Convenience sampling was used in selecting the participants of the study. A questionnaire was used for data collection. The data was analyzed using the Statistical Package for Social Sciences (SPSS) version 23. Descriptive statistics including frequencies, means and standard deviation were applied to analyze numerical data gathered using closed ended questions. Regression analysis was used to determine the relationship between the study variables. The data was presented in form of tables, 2-D figures and pie charts. The study established that personal characteristics, consumer attitudes and convenience influence the choices of online merchants in Nairobi County. The study concludes that increasing personal characteristics, consumer attitudes, and convenience is positively related to choices of online merchants in Nairobi County. iii TABLE OF CONTENT DECLARATION..................................................................................................................... ii ABSTRACT ............................................................................................................................ iii LIST OF TABLES ................................................................................................................ vii LIST OF FIGURES ............................................................................................................. viii OPERATIONAL DEFINITION OF TERMS ..................................................................... ix ABBREVIATIONS /ACRONYMS ....................................................................................... x ACKNOWLEDGEMENTS .................................................................................................. xi CHAPTER ONE INTRODUCTION .................................................................................... 1 1.1 Background of the Study ................................................................................................. 1 1.1.1 Online Shopping ....................................................................................................... 2 1.1.2 Factors Influencing Choice of Online Shops ............................................................ 3 1.1.3 Jumia......................................................................................................................... 6 1.2 Statement of the Problem ................................................................................................ 7 1.3 Objective of the Study ..................................................................................................... 8 1.3.1 General Objective ..................................................................................................... 8 1.3.2 Specific Objective .................................................................................................... 8 1.4 Research Questions ......................................................................................................... 8 1.5 Significance of the Study ................................................................................................ 8 1.6 Scope of the Study ........................................................................................................... 9 CHAPTER TWO LITERATURE REVIEW ..................................................................... 10 2.1 Introduction ................................................................................................................... 10 2.2 Theoretical Framework ................................................................................................. 10 2.2.1 Theory of Planned Behaviour ................................................................................. 10 2.3 Empirical Review .......................................................................................................... 11 2.3.1 Personal Characteristics and Choices of Online Shops .......................................... 11 2.3.2 Consumer Attitudes and Choices of Online Shops ................................................ 13 2.3.3 Convenience and Choices of Online Shops............................................................ 14 2.3.4 Factors Influencing Customers' Choices of Online Shops ..................................... 15 iv 2.4 Research Gap ................................................................................................................. 16 2.4 Conceptual Framework ................................................................................................. 17 CHAPTER THREE RESEARCH METHODOLOGY .................................................... 19 3.1 Introduction ................................................................................................................... 19 3.2 Research Design ............................................................................................................ 19 3.3 Study Population ........................................................................................................... 19 3.4 Sampling Technique and Sample Size .......................................................................... 19 3.5 Data Collection Methods ............................................................................................... 20 3.6 Research Quality ........................................................................................................... 20 3.6.1 Validity of the Instrument ...................................................................................... 21 3.6.2 Reliability of the Instrument ................................................................................... 21 3.7 Data Analysis and Presentation ..................................................................................... 22 3.8 Ethical Considerations ................................................................................................... 22 CHAPTER FOUR DATA ANALYSIS, RESEARCH FINDINGS AND INTERPRETATION ............................................................................................................ 23 4.1 Introduction ................................................................................................................... 23 4.2 Response Rate ............................................................................................................... 23 4.3 Demographic Information ............................................................................................. 24 4.3.1 Gender of the Respondents ..................................................................................... 24 4.3.2 Age of the Respondents .......................................................................................... 25 4.3.3 Respondents Level of Education ............................................................................ 25 4.3.4 Respondents Payment Preference........................................................................... 26 4.4 Descriptive Statistics ....................................................................................................
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