CONSUMERS’ ACCEPTANCE TOWARDS E-GROCERY PHANG JO YEE MASTER OF BUSINESS ADMINISTRATION UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF ACCOUNTANCY AND MANAGEMENT APRIL 2016 Consumers’ Acceptance Towards E-Grocery Phang Jo Yee A research project submitted in partial fulfilment of the requirement for the degree of Master of Business Administration Universiti Tunku Abdul Rahman Faculty of Accountancy and Management April 2016 Consumers’ Acceptance Towards E-Grocery By Phang Jo Yee This research project is supervised by: Farah Waheeda Binti Jalaludin Lecturer Department of International Business Faculty of Accountancy and Management Copyright @ 2016 ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, graphic, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior consent of the authors. iii DECLARATION I hereby declare that: (1) This Research Project is the end result of my own work and that due acknowledgement has been given in the references to all sources of information be they printed, electronic, or personal. (2) No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university, or other institutes of learning. (3) The word count of this research report is 18678 . Name of Student: Phang Jo Yee Student ID: 14UKM00221 Signature: ____________ Date: ____________ iv ACKNOWLEDGEMENT First and foremost, I would like to express my deepest gratitude to my mother, Ms. Ong Poh Kuan, and father, Phang Yeong Keat, who have been with me throughout this entire journey. Without them, I would not be able to successfully complete this dissertation. I would also like to thank Ms. Farah Waheeda for her guidance and mentorship throughout this dissertation. It was an honour to work with her and she has helped me all the way through this research study. I would also like to thank the members of Faculty of Accountancy and Management and Institute Postgraduate Studies and Research, for their assistance during the programme. Thank you. v TABLE OF CONTENTS Page Copyright ..................................................................................................................... iii DECLARATION ......................................................................................................... iv TABLE OF CONTENTS ............................................................................................. vi LIST OF TABLES ........................................................................................................ x LIST OF FIGURES ..................................................................................................... xi Abstract ....................................................................................................................... xii Chapter 1: Introduction ................................................................................................. 1 1.0 Introduction ......................................................................................................... 1 1.1 Research Background ......................................................................................... 1 1.2 Problem Statement .............................................................................................. 4 1.3 Research Objective(s) ......................................................................................... 5 1.3.1 General Objective ........................................................................................ 5 1.3.2 Specific Objectives ...................................................................................... 5 1.4 Research Questions ............................................................................................. 5 1.5 Hypotheses of the Study ..................................................................................... 6 1.6 Significance of the Study .................................................................................... 6 1.7 Conclusion .......................................................................................................... 8 Chapter 2: Literature Review ........................................................................................ 9 2.0 Introduction ......................................................................................................... 9 2.1 Review of Literature ........................................................................................... 9 2.1.1 E-Grocery ..................................................................................................... 9 2.1.2 Perceived Usefulness ................................................................................. 12 2.1.3 Perceived Ease of Use ................................................................................ 13 2.1.4 Perceived Risk ........................................................................................... 14 2.1.5 Social Influence ......................................................................................... 16 vi 2.1.6 Attitude Towards Using E-Grocery ........................................................... 17 2.1.7 Behavioural Intention to Use E-Grocery ................................................... 19 2.1.8 Actual Usage of E-Grocery ........................................................................ 20 2.2 Proposed Theoretical/Conceptual Framework .................................................. 22 2.3 Hypotheses Development ................................................................................. 25 2.3.1 Perceived Usefulness and Attitude Towards Using E-Grocery ................. 25 2.3.2 Perceived Ease of Use and Attitude Towards Using E-Grocery ............... 26 2.3.3 Perceived Ease of Use and Perceived Usefulness ...................................... 28 2.3.4 Perceived Usefulness and Behavioural Intention to Use E-Grocery ......... 29 2.3.5 Attitude Towards Using E-Grocery and Behavioural Intention to Use E- Grocery ............................................................................................................... 31 2.3.6 Behavioural Intention to Use E-Grocery and Actual Usage of E-Grocery 32 2.3.7 Perceived Risk and Attitude Towards Using E-Grocery ........................... 34 2.3.8 Social Influence and Attitude Towards Using E-Grocery ......................... 35 2.4 Conclusion ........................................................................................................ 37 Chapter 3: Research Method ....................................................................................... 38 3.0 Introduction ....................................................................................................... 38 3.1 Quantitative Approach ...................................................................................... 38 3.2 Data Collection ................................................................................................. 39 3.3 Sampling Design ............................................................................................... 40 3.3.1 Target Population ....................................................................................... 40 3.3.2 Sampling Elements .................................................................................... 41 3.3.3 Sampling Units .......................................................................................... 42 3.3.4 Sampling Technique .................................................................................. 42 3.3.5 Sampling Size ............................................................................................ 43 3.4 Research Instrument .......................................................................................... 44 3.5 Pilot Test ........................................................................................................... 45 3.6 Data Scale Measurement ................................................................................... 48 3.7 Data Analysis Techniques ................................................................................. 49 3.7.1 Reliability Test ........................................................................................... 49 3.7.2 Pearson’s Correlation ................................................................................. 50 vii 3.7.3 Multiple Regression Analysis .................................................................... 51 3.7.4 Linear Regression Analysis ....................................................................... 52 3.8 Conclusion ........................................................................................................ 52 Chapter 4: Research Results ....................................................................................... 53 4.0 Introduction ....................................................................................................... 53 4.1 Reliability Test .................................................................................................. 53 4.2 Descriptive Analysis ......................................................................................... 55 4.2.1 Demographic Profiles ................................................................................ 55 4.2.2 Analysis on Screening Questions ............................................................... 57 4.3 Hypotheses Testing ........................................................................................... 58 4.3.1 Multiple Regression Analysis .................................................................... 58 4.3.2 Linear Regression Analysis ....................................................................... 63 4.3.3 Pearson’s Correlation ................................................................................. 65 4.3.4 Point-Biserial Correlation .......................................................................... 67 4.4 Summary of Hypotheses Testing ...................................................................... 69 4.5 Conclusion ........................................................................................................ 70 Chapter 5: Discussion and Conclusion ....................................................................... 71 5.0 Introduction ....................................................................................................... 71 5.1 Discussion of Major Findings ........................................................................... 71 5.1.1 H1 (a) ......................................................................................................... 71 5.1.2 H1 (b) ......................................................................................................... 72 5.1.3 H1 (c) ......................................................................................................... 73 5.1.4 H1 (d) ......................................................................................................... 74 5.1.5 H1 (e) ......................................................................................................... 74 5.1.6 H1 (f) .......................................................................................................... 75 5.1.7 H2 ............................................................................................................... 76 5.1.8 H3 ............................................................................................................... 77 5.2 Implications ....................................................................................................... 77 5.2.1 Usefulness .................................................................................................. 78 5.2.2 Ease of Use ................................................................................................ 78 5.2.3 Social Influence ......................................................................................... 79 viii 5.3 Limitations of Study ......................................................................................... 80 5.4 Recommendations for Future Research ............................................................ 81 5.5 Conclusion ........................................................................................................ 81 REFERENCES ........................................................................................................... 83 Appendices .................................................................................................................. 92 ix