Modern technology has impacted the growth and development of online shops. High technology had led to the production of high-quality products and services that motivate customers to purchase products online. Also, technology has improved online business security, gaining more trustworthiness, encouraging more people from Jeddah to buy their products from online shops. E-commerce has gained popularity in many countries across the globe; due to the rapid growth of the technology industry. Also, the mode of payment for online products has affected how customers perceive the online business. Most customers used credit or debit cards to pay for the products they bought online. Besides, a Euro monitor report of 2012 indicates that online shopping in Saudi Arabia has increased; thus, most people in Jeddah purchased their products from the online shop.

The report stated that customers in Jeddah at Saudi Arabia bought products online due to the quality of the products they bought online since they believed they were of high quality compared to those from the traditional stores. Also, from the literature review, the United Arab Emirates used e-commerce in all their transaction. The increase was due to a change in people’s perception of online business and the embrace of advanced technology. The increase in the number of online customers was due to faster delivery since the purchased products at the customer’s convenient area. Also, most producers had implemented the idea of online business in the United Arab Emirates, increasing product availability. However, the research showed that there was no security on products bought on the online shops. Most consumers had a perception that the products may not reach them in time, or they may not reach them at all since they never knew where the business was located except been online. Also, there was a need to address privacy on consumer’s information since most buyers and sellers feared that their essential information might leak to malicious people, thus destroying their reputation. The study applied primary data, and the data were analyzed using a quantitative method with the use of graphs, pie charts, and tables to present. The research also accepted or rejected the null hypothesis derived from the research objectives. The interpretation of the research questions to know whether they were true or false, and conclusions derived for the results.

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In conclusion, we rejected the null hypothesis that online customers had decreased due to high insecurity in the online shop. Instead, the research indicated a definite increase of online customers with a high percentage of 76 compared to traditional stores, which had a percentage number of 24 per cent. Indeed, the research encourages people to purchase products from online shops.

CHAPTER ONE

Introduction/background information

Individuals used to purchase goods and services from traditional markets and stores before the invention of the computer and internet technology. The development of the internet and technology across the globe has led to the growth in popularity of e-commerce. E-commerce is the application of technology in conducting financial transactions. E-commerce occurs when data is processed and transmitted electronically, where it currently features business activities such as online transactions and the use of credit cards. A recent trend of e-commerce named e-shopping has enabled consumers to purchase goods and services virtually. The virtual shopping means that customers can access goods and services without a physical location constraint.

E-commerce has gained popularity in many countries across the globe; due to the rapid growth of the technology industry. A Euro monitor report of 2012 indicated that e-commerce in Saudi Arabia had been expanding significantly, where 60 per cent of the citizens were using it at that time. The report stated that customers in Saudi Arabia were motivated by high disposable incomes and shopping convenience to participate in e-commerce activities such as online shopping and the use of credit cards. However, the report indicated that a lack of self-confidence hindered customers’ participation in e-commerce. The research implies that consumer participation in e-commerce influences several factors such as trust factors, including buyer’s risk perception, seller’s reputation, and motivation to buy. However, the rapid evolution in technology and globalization creates possibilities of rapid change in the e-shopping behaviours among consumers in Saudi Arabia. The rapid development in technology and globalization does regular research to determine changes in e-commerce consumer participation necessary. This research will provide the current state of e-commerce in Saudi Arabia and offer a projection regarding its expected changes in the future.

The development of e-commerce in Saudi Arabia recognizes the involvement of the Saudi Arabian Government in the sector. Notably, e-commerce is a concept that began in the early-1990s. Although the e-commerce sector performed poorly in the 1990s after its inception, as evidenced by the collapse of many e-commerce organizations between 1998 and 2000 during the era of dotcom-bubble, the Saudi Government still saw the need to integrate e-commerce with its economy. In 2004, the Saudi Arabian Government launched several e-commerce initiatives through its ministries. These initiatives played a significant role in promoting the growth of e-commerce in Saudi Arabia through highly sensitive information and communication technology, better delivery services, and postal operations and efficient banking. An important initiative adopted by the Saudi Arabian Government in 2004 was the SADAD payment system by the Saudi Arabian Monetary Authority (SAMA). The SADAD payment system was to serve as the funds’ transfer and electronic bill-payment system for the Kingdom of Saudi Arabia (Sait et al., 2004). The SADAD payment system initiative helps to reduce privacy and transaction risks. It acts as a direct online system that offers consumers a high degree of confidentiality, security, and confidence. Consumers can use the SADAD system to make payment of huge periodic bills such as phone and utility bills and customer-initiated bills such as e-commerce purchases.

Research problem

Although statistics indicated that there was growth in electronically transacted business over the years, there was a need to do a study on the customer’s perception of online shopping. In the real world, customers perceive products differently and where they acquire their daily products. Consumers are always concerned about their security and safety of the products they consume and use at their homes and the workplace. They concerned about the price of the product and the mode of payment to use during the transaction. Therefore, this research project focus on customer’s perception regarding the electronically transacted business and customer purchasing power in the Jeddah region in Saudi Arabia.

Research Question

What are consumers’ perceptions regarding online shopping in Jeddah?

The objective of the Research

To identify consumers’ perception in the Jeddah area in Saudi Arabia regarding online shopping
To identify the factors that determine consumer’s decisions to use online shopping vs traditional shopping
To examine to what extent residents of Saudi Arabia’s preference to pay for products purchased online websites (cash, credit/debit card, apple pay)
To investigate the reasons for Saudi consumers’ choice for paying through cash, credit/debit card, or apple pay

Hypothesis on the research objectives.

There was no significant relationship between customer’s perception and the growth of online business in Jeddah region at Saudi Arabia

There were no significant factors that affected how Jeddah people in Saudi Arabia made decisions on how to purchase their products and services from online shops.

There was no significant extent to a preferable method of payments of online products at the Jeddah region in Saudi Arabia

There were no substantial reasons why Jeddah online customers used different modes of payment for online products.

Purpose of the research project

The goal of the research project was to investigate a customer’s perceptions of online shopping and the mode of payment they used to obtain goods and services online. The style of payment meant that the customers were purchasing products online and knew the implications of online shopping, so the research focused on their perceptions. A group of 264 people from Jeddah in Saudi Arabia was the sample to participate in the project. There were no specific criteria used in choosing the example from the entire population since we knew those who participated in e-commerce. Also, the study tries to understand whey online business and not the traditional mode of doing business. The research project looks at what extent customers’ decisions affected online shops.

Limitations of the research project.

The research was limited to only the Jeddah area in Saudi Arabia. The project is on a time limit since only one month was set for the whole study. The study was limited to a sample of 264 from the entire population and biased to those who participated in e-commerce. The project is limited. The researcher used a questionnaire to collect data; thus, only literate people alone involved in the process.

CHAPTER TWO

Literature review

Theoretical framework

Customer perception explains how a customer feels towards a product, service, business, or even the mode of payment for the transaction. The research project dealt with a customer’s perception of online shopping. The project intended to answer the question of whether there was a difference in the customer’s opinion of online shopping, and it was evident that each customer perceived electronically transacted business differently. Also, the study focused on the different modes of payment used by customers to pay for the products they obtained from online shopping. We found that some customers used cash, other debit card and additional apple pay to complete their transactions. The project also addressed the reasons why the customers choose a specific mode of payment they used during purchasing products and services online. The research project also addressed the factors that determined how the customers decided to obtain their products from online shops. Overall, this project provides answers to all the research questions and tested their hypothesis.

Technology had a significant impact on a customer’s perception of an electronically transacted business. Advancement in technology influenced the type, quality, and quantity of products offered in the online shop. Also, technology had an impact on the market in such a way that online shops that had adopted the improved new technology in the manufacturing and marketing of their products had more customers. According to Lin & Hsieh (2006), most customers had a positive perception of online shops that had adopted and implemented advanced technology. The results indicated that technology influenced how customers perceived and purchased products and services from online shops. Also, technology helped in tracking customer’s behaviour on how they bought goods from the online shop. Generally, technology had a significant influence on how customers perceived online business and how they purchased products and services from the online shop.

Customer perception of e-commerce in the United Arab Emirates

Over the years, e-commerce has steadily increased in the United Arab Emirates due to advancements in technology, making it the most significant region to use online marketing. The research project focused on customer perceptions of e-commerce in the United Arab Emirates. Research by Mohamed and Ahmed (2014) showed that most customers had embraced new technology and preferred buying their products online, including their daily consumption goods. The online business was termed e-commerce in the world. The researchers demonstrated that the United Arab Emirates had embraced online marketing, and they bought their products from the electronically transacted business. Also, studies showed that producers who sold their produce, products and services through online store had increased by 20% (Mohamed & Ahmed,2014). The research showed that people of the United Arab Emirates had a difference in how they perceived online marketing. The results showed that perception was both positive and negative; thus, it affected the sellers and buyers in different ways. Besides, the demand for shopping online had significantly improved, although there was a significant issue on consumer data of the United Arab Emirates, on whether the online recorded data was accurate and safe since most people feared to expose their information to malicious individuals. According to Mohamed and Ahmed (2014), the number of e-commerce customers expects to increase to approximately ten billion by the end of 2018. The projection meant that the United Arab Emirates would use e-commerce in all their transaction. The increase was due to a change in people’s perception of online business and the embrace of advanced technology. The increase was due to faster delivery since the purchased products at the customer’s convenient area. Also, most producers had implemented the idea of online business in the United Arab Emirates, increasing product availability. However, the research showed that there was no security on products bought on e-commerce. Most consumers had a perception that the products may not reach them in time due to late shipping and also feared that they never knew where the business was located except been online. Also, there was a need to address privacy on consumer’s information since most buyers and sellers feared that their essential information might leak to malicious people, thus destroying their reputation. Mohamed and Ahmed (2014) indicated that there was a need for any e-commerce organization to enact policy mechanisms to mitigate cybercrimes and improve cybersecurity, thus the growth of the online business.

Website privacy trustworthiness

The website privacy trustworthiness is influenced by several factors and impact online shops in different ways. For instance, the online business provides an extensive flow of data and information that facilitates the growth of the e-commerce industry. The security is essential in e-commerce and affects consumer and producer perception on the reliability of the sector in the future since people do not want to make losses during a transaction. The research project would focus on website privacy trustworthiness. For instance, research by Alisa (2017) showed that online marketing had grown by approximately 330 billion and had high potential to grow due to resource availability and technology advancement. The growth was due to increased trust between the producers and consumers of online products and services. The results showed that there was mutual trust enabling the success of the e-commerce business. Also, the trustworthiness depended on how an online organization guarded their customer’s vital information. According to Frik & Mitton ( 2017 ), more successful online businesses had a suitable payment plan that ensured customers were able to make payments of products and services bought online with much ease. According to Frick and Mittone,(2019 ), they demonstrated that consumer perception on online organization’s trustworthiness depended on how they kept the consumer information and how the delivered products to customers at their convenient destinations.

The research of Frik and Mittone (2019) sampled about 128 members of the Mobile lab and asked them to give information on what determined an e-commerce organization trustworthiness and purchasing power of the consumers. The research used interviews and questionnaires as methods of data collection to understand the importance of trust in any business. The findings showed that 50% of the online organizations violated their customer privacy since they did have functional mechanisms to protect their client’s vital information. The customers explained their disappointments and fears when conducting e-commerce business since some people felt that their private information has exposure to malicious online people who committed cybercrimes, thus increased theft. The people suggested that online business producers develop a strong password and strength online data protection laws. Also, there was a positive correlation between website privacy trustworthiness and customer’s perception of online business as well as the purchasing intentions. Based on (Erick & mitten,2019) website security and reliability had a positive impact on consumers’ purchasing power; thus, website privacy and trustworthiness influenced customer’s perception of an electronically transacted business. Also, safe payment options indicated that they had a positive impact on the customer’s purchasing power of online products and services. Also, the findings indicated that online organizations should improve the privacy of their customer’s data and assure them that their information was safe and secure. Besides, the study findings showed that online organization should invest much time and income in developing their websites. To ensure that they have an updated and accurate website since good website indicates quality products and increases customer’s trustworthiness, thus positive perception of online business.

The research project of Kushwah & Singh (2019) observed that there was much growth of e-commerce had been promoted by its vast potential for technological growth. The researchers noted that technological growth in India, for example, would be developed by the reduction in the cost of production and environmental boundary escalation hence reducing the limitation for buyer-seller interaction. They observed that the advent of computers and smartphones and the growth in internet technology not only allow people to participate in online shopping but also promotes economic development by encouraging participation in international trade, local alternatives consumption, and interaction with global companies. In their report, Kushwah and Singh’s (2019) observed that there were many internet users where their perception of electronically transacted businesses had generated much income. A study by Joseph and Joseph (2017) has shown that consumers tend to shop online since it saves them time and money. The research shows that consumers are further attracted to online shopping since they also consider it to be safe. This study shows that consumers not only participate in e-commerce because of the expected pleasure but also due to the presumed security (Joseph & Joseph, 2017). Besides, the study evidence that the change in lifestyle patterns leads to an increase in customer loyalty regarding the use of e-commerce. Chen et al. (2008) observe in their study that perception encourages the buyer to use the e-commerce facilities. The research shows that consumer perception determines the level of compatibility, privacy, and complexity, which are three aspects that influence the use of e-commerce facilities (Chen et al., 2008). Besides, sophistication and privacy in this report as elements determining the difficulty or ease of using e-commerce facilities.

The study portrays compatibility as a factor influencing e-transactions use because of a close relationship between cultures, values, and language of consumers. It is hence evident from the study that the success of e-transactions is dependent on consumer loyalty, trust, and satisfaction. Arora and Muttoo (2018) observe in their report that gender and age are the factors influencing consumer participation in e-commerce. In the story, the researchers found that men between the ages of 25 and 40 years tend to spend more on online transactions compared to their colleagues in other age groups (Arora & Muttoo, 2018). The authors also observe that the income levels of consumers also influence online purchasing. The researchers find that high-income levels promote the accessibility to online transaction services. People with high-income levels can afford complementary goods or e-commerce, including smartphones, computers, electricity, and the internet. Researchers have shown that governments succeeded in its initial adoption of e-commerce since they discovered the importance of consumers in the institutionalization process. The researchers tasked with the study of the demographic preparedness for the e-commerce found various factors influencing the consumer’s adoption decision. Firstly, the researchers observed that consumers consider the benefits of participating in e-Commerce. In this case, consumers believe whether e-commerce will contribute to the improvement of their lives or not (Riorini et al., 2019). Secondly, consumers evaluate the compatibility of e-Commerce with technology. Consumers who are comfortable with the use of the internet, computer, and mobile phone technology had a higher chance of adopting e-commerce than their uncomfortable counterparts.

Technology on consumer perception of the online shop)

The development of modern technology has influenced people’s lifestyles as well as online marketing. Vikas & Vinod (2017) indicated that peoples changed their way of life with the change of technology, thus influenced the products they purchased from the online shop. The study noted that online shopping was adopted and used by many people than the traditional way of shopping. Also, people’s perception of online marketing had increased since most of the people obtained their shopping from online organizations compared to past years where people travelled to store to purchase their shopping. Vikas & Vinod (2017) in their research, they used primary data where 100 people from the entire population participated in the study. The research employed a questionnaire as a method to collect data from the respondents. The project also used quantitative and factor analysis to show consumers’ perception of the electronically transacted business. The results indicated that there was a strong correlation between the customer’s knowledge of the online market and the technology used in the business organization. The findings supported that customers had a positive response on the online shipping since technology had influenced the quality and quantity of products sold by online organizations.

According to Shanthi (2015), the consumer’s perception of online marketing varied from customer to another, and the judgment was limited to a certain extent by the availability of the proper connectivity and the exposure to online shopping. The study showed that the perception of the consumer had close relationships; hence they faced similar challenges on the online market. The study revealed that most of the online customers were the young people aged between 18 to 35 since they had access to the internet that allowed them to learn and understand how online business operated. Older people were the least adopters and users of online shops since they could not understand the technology and the mechanisms used in online marketing. The study also indicated that most of the people who shopped online bought foodstuffs and electronics since they were less expensive compared to the standard shop price since they had a discount. The study also revealed that the costs of the products that they sold online were low, and the products were of high quality that motivated most people to use online marketing. Also, according to Pratiksinh V (2014), the study indicated that most of the customers had experience of online shopping and appreciated the beauty of modern technology. Also, Customer believed that online shopping was the better option than manual shopping since the online organization had technology that checked the quality of the product and ensured that the products reached the customer safe and faster. The results showed that people preferred online shopping due to faster delivery and technology that produced receipts that helped the customer to know the amount of money spent on shopping at a time. Besides, the study showed that most of the customers were facing problems with the mode of payment since they could not understand the organization’s financial set mechanisms. According to, customers’ most alarming barriers for online shopping are unable to verify products personally, online payment security. A research done by Rajesh & Purushothaman (2013) indicated that technology had an impact on customer’s perception of the use of the electronically transacted business. In their study, they discussed comprehensive, theoretical and practical ways of purchasing and selling products online using modern technology. In their research, they also combined all the factors that had an impact on customer’s perception and the purchasing of online products and services. The results indicated that technology influenced how customers perceived online business and purchase products from the website.

According to Kanwal G. (2012), there was a significant correlation between how people perceived online business and adopted and used new technology. Indeed, the research showed that an organization that had modern technology had more customers hence had a significant market share competitive advantage. Researchers have shown that governments succeeded in its initial adoption of e-commerce since they discovered the importance of consumers in the institutionalization process. The researchers tasked with the study of the demographic preparedness for the e-commerce found various factors influencing the consumer’s adoption decision. Firstly, the researchers observed that consumers consider the benefits of participating in e-Commerce. In this case, consumers believe whether e-commerce will contribute to the improvement of their lives or not (Riorini et al., 2019). Consumers evaluate the compatibility of e-Commerce with technology. Consumers who are comfortable with the use of the internet, computer, and mobile phone technology had a higher chance of adopting e-commerce than their uncomfortable counterparts. Consumers evaluate risks linked to the use of e-Commerce technology. According to the researchers, lower risks related to the e-commerce services increase the consumers’ acceptance of e-commerce technology

Customers who transacted online shopping were happier and healthy than conventional buyers. The customers were able to purchase all their required products online at a discounted price and were sure of the quality of the products they were buying. The customers did not have to travel to get their products; instead, the online retailer dropped the products at the customer’s convenient place. In other cases, the seller delivered the customers parcel at doorstep, reducing the cost incurred in travelling to stores to collect items as well as time spent in stores searching for the right products to buy. People had different intentions of participating in the electronically transacted business. Some people used online shops due to their high reliability and accessibility. Others used online business because they had no time to go to the stores due to their busy schedules. Other customers liked the discounted price of online products; thus, the prices were more favourable to consumers. From previous studies, it was evident that several factors affected customer’s perception of online business and their purchasing power; however, this project explored more on the customer’s understanding of e-commerce.

Consumers studied the e-commerce website’s friendliness in terms of the ease of shopping and navigation. Secure shopping influences their decision to adopt e-Commerce technology. They observed that consumers living in urban areas have higher and navigation processes increase the chances for the consumers’ adoption of e-Commerce technology facilities. The researchers noted that the city of residence of consumers significantly likelihood of adopting e-Commerce technology in comparison to their colleagues living in rural areas. The increased urbanization of nations in the 21st Century, therefore, can be directly linked to the rise in the e-Commerce involvement among its residents. It is important to note that urbanization facilitates access to complementary technological goods and services for e-Commerce, including electricity, smartphones, computers, and the internet.

Conceptual framework

In this research project, there is a theoretical framework to illustrate all the concepts applied in the study. A conceptual framework is an analytical tool that represents the main ideas in a context. In the research project, consumer purchasing power and the perception of an electronically transacted business has several factors. The conceptualization of consumer purchasing intentions was the primary concern in the project. Also, the electronically transacted business was of much interest in the project, and we observed the market patterns, growth and development. Research by Monroe (2010) indicated that the growth and development of the online market had a significant impact on consumers. The implication was, big markets offered quality products to customers; hence the majority of the people preferred purchasing products on those big and developed online organizations. Also, developed markets had high-risk management mechanisms thus were ready to solve any challenge that came with the handling of the business products. Also, developed online organizations had adopted new technology; therefore, they kept their client information safe, thus increased privacy trustworthiness. Online organizations that had a good reputation on the public domain had more customers since people perceived them to be good and trusted them. The electronically transacted business that had the standard mode of payment had more customers compared to those who had a fixed pattern of payment. Also, online organizations that had useful human resources strategic plans were more successful and customers perceived them to be good, thus improved purchasing power. From (Agarwal et al.,.2001) good risk management strategy had a positive impact on online market grow, therefore encouraged human resource managers to invest in the general development of the organization.

Confidence level

In the research project, a good conceptual framework determines the progress of the project. From the conceptual framework, it is evident that various factors influenced the customer’s perception.

Quality of the product

The quality of the products offered online influenced the number of customers who purchased them. For instance, organizations that manufactured high-quality products had many customers compared to those who produced low-quality products. The quality of the goods attracted customers. A functional and attractive package attracted customers. From the model, the quality of the product determined the purchasing power of the consumers. Also, products that had long live shells had more consumers since people tend to purchase products that have extended expiry dates. Products that have stayed long in the market were deemed outdated hence were not meeting the customer’s standards. Customers were severe about checking the compounds used to manufacture the type of products they purchased online since they feared for their health and also the side effects.

Familiarity with the brand

Products that were common to customers had high market share and high competitive advantage. High market share indicated that people bought products that they were familiar with thus had much trust in the brand and the organization that produced the product. From the research project, it clear that customers trusted old brands and organizations that the emerging organizations in the business world. Despite the introduction of new technology and the production of high quality and standard products, people purchased the products from the old commonly and well-established organization. Customers termed new products as fake or imitation of the original product thus opted to buy their products from organizations they were familiar with the brand. The mentality of that only old, well-established businesses produced quality, and authentic products prevented the penetration of new business in the market. Due to the lack of positive response from the customers, it was hard for new organizations to grow and develop in the market; thus, they faced stiff competition for the existing online businesses. The research indicated that the familiarity with the brand of the product had a significant impact on customer’s perception. Overall, the popularity of a brand affected the purchasing power of the consumers.

Price and mode of payment

The research project found that the rate and method of payment had an impact on the customer’s perception. The increase in price led to decreased demand for the product in the market. Also, reduced need for a product led to an increased surplus of the product in the market place. Generally, people were buying more in online organizations when prices were low. The decrease in consumer purchasing power indicated that people made more purchases when prices were low. From the results, it’s evident that producers should sell their produce at the equilibrium price, primarily when forces of demand and supply determine the market price. Also, producers who sold their products at low prices had fewer customers since customers deemed the product of deficient quality. Besides, the cost of production of the most products that were online was a bit high, indicating that there was a great need for stabilizing the prices. Second, the mode of payment affected how customers purchased products from the electronically transacted business. For instance, organizations that accepted cash only in delivery had fewer customers. The customers were lesser because people did not carry liquid money in their pockets. The research indicated that the majority of the customers used credit and debit cards to make payments for the products purchased online. The map was most preferred since it was easy and safe to make payment for the transaction. Also, people had no time to queue in banks to receive liquid money when they could use the card and make payment at their convenient time and place. The result also showed those who used apple pay or pay pal were less. Most online shops did not accept the apple or PayPal mode of payment. They argued that the method took a lot of time to complete transactions made. Also, they argued that they did not trust the apple pay as well as PayPal. The research concluded that price and mode of payment had an impact on customer’s perception and their purchasing power in online shops.

Trust in the online shop.

Most respondents had no trust in online shops and thought that most online organizations were after conning clients their money or even poor quality products would be delivered. The respondents argued that most online shops asked for payment before shipping the product to the consumer’s destination; hence there was no security on the transaction. Also, there was no set mechanisms or policies to guarantee the customer that the seller would complete the transaction after payment. The results also indicated that most customers were afraid to release their information to online management since they feared the information could be exposed to malicious people, thus boycotting their privacy. Also, customers feared that the organization could trace their information, thus exposing them to dangerous people. Indeed, it was important for the online market to enact policies that are governing online business. It was also vital for online management to implement developed policy mechanisms to prevent cybercrimes and improve cybersecurity. The research project encouraged those who operated an online business to create strong passwords that would be hard to guess and hack into the customer’s account. The study also called e-commerce to adopt and implement new technologies to improve on their security and quality products as well as delivery. The study indicated that people had trust in a business that had a strong brand and a good reputation. Also, organization trustworthiness had a significant impact on the customer’s perception and purchasing power of the customer.

Confidence level.

The confidence level of the consumer was essential in purchasing products from the online shop. The findings indicated that customers who had high confidence in electronically transacted business bought frequently. The implication was that customers feared the viability of the products offered online. They also doubted the quality and safety of online products; thus, it was difficult for them to purchase products continuously. Also, other respondents believed that continued buying of products from the same organization led to intimidation, thus delivery of low-quality products. The majority of the respondent opted for purchasing products from different organizations at different times since they had low confidence with one organization. For instance, customers who used the online shops to buy cooked foodstuffs complained that the shops changed the quality of the food frequently hence could not be trusted. The research project concluded that the confidence level of the consumer affected their perception of online marketing.

CHAPTER THREE

Research Methodology

Data Collection Technique

The objectives of the research were to identify the respondents’ preferences and thoughts of Saudi Arabian consumers regarding e-commerce. A convenience sample survey on a sample of 264 respondents was to participate in the research project by providing data. We came up with the number of respondents based on a 5% margin of error, a 95% confidence level, and the 3,143,000 population of the citizens of Jeddah in Saudi Arabia. The survey was conducted through online channels to ensure convenience among the respondents. We prepared questionnaires and posted them online and visited the respondents to observe they are consistent in purchasing products and services online. We also did piloting of the survey to test the viability and accuracy of the method in Jeddah in Saudi Arab. We also used data from online organizations to complement our collected data. The entire survey was completed within one week since we were familiar with the area of study and was also faster to obtain secondary data from online organizations and articles.

Sampling technique.

The random sampling technique was employed to choose the respondents, where all respondents had an equal possibility of being selected. The survey applied closed-ended and open-ended questionnaires, where respondents had to choose one option from a fixed list of options and to give information on where they were to explain the reason for the choices. In most cases, we made most of the questions closed-ended since they were time-efficient. Also, it was easy to interpret and code. It is also ideal for research that has a quantitative research approach.

Data Analysis

Data analysis is a process of inspecting, cleansing, transforming, modelling, and interpreting data to get useful information to make conclusions from the set type of data (Xia & Gong, 2015). After the data collection process is over, the collected data manually selected. The data was then recorded and analyzed using the excel sheet. The results’ findings, interpreted through the observation of the results. Also, the conclusion from the data findings, results, as well as the hypothesis of the research questions, was tested.

Research Validity

Reliability refers to the extent to which data collection techniques or techniques will yield consistent findings or similar observations that would result in the same conclusion. Validity refers to the area to which data collection methods or methods accurately measure what they are to measure. Since the research is quantitative, closed-ended questions will aid in achieving validity and reliability, as interpretations and conclusions are obtained from the collected and analyzed data.

Research Ethics

The research project topic raised the ethical issue of privacy and confidentiality. However, the respondents and the researchers were aware that the study would compile into a report that would be available for public consumption. It was a professional obligation of the researchers to protect the identity of the respondents to avoid the ethical issues of privacy and confidentiality. In this research project, the integrity of the participants confidential for security purposes. Furthermore, the researchers signed the “Low-Risk Assessment for Student Research” by the research Centre to ensure the highest level of ethical conduct for research at Dar Al-Hema University. Generally, the study protected the respondent’s information.

Timescale

The entire process of writing a research proposal, collecting data, and preparing the research project is a total of one month. One week was for proposal writing, a compilation of the work, and approval of the research proposal and preparation for the survey. The preparation process involved raising resources for the study in that questionnaires are prepares as well as the need for computers and software using Survey Monkey. The data collection, analysis, and presentation of the report took the remaining three weeks of the month.

Resources

The research project had a small budget since it did not involve travelling for long distances to collect data. The respondents were near the university thus readily available for the data collection. We incurred a cost in preparing the questionnaires and piloting them. Also, it was a need for bundles to google more information relating to the research project, so we incurred the cost. The project budget needed proper preparation in advance to ensure the success of the research project.

CHAPTER FOUR

Data analysis, presentation, interpretation, and conclusion

Data analysis was essential for the research project in that it helped in making vital decisions on customer’s perceptions concerning online shopping. Also, it helped in understanding customers’ needs, thus strong building relationships between the producer and the consumer. Besides, it helped in creating awareness on consumer perception and their behavior on how the approached and perceived electronically transacted business. Data presentation was very vital since it allowed a faster understanding and interpretation of the data. It was important in providing a summary of the collected data. It was essential to interpreting the represented data for speedier understanding and decision making. The researcher collected data from the Jeddah region in Saudi Arabia using the questionnaire. The researcher also observed the patterns and behavior of the respondents that helped to invalidate the data. Also, the researcher compared the data collected with that on the website of the most electronically transacted businesses. The data collected was presented in Microsoft excel the graphs and pie charts developed from the analyzed data. The quantitative method of data analysis is used during the data analysis since the project was quantitative research. A deductive approach is employed to test theories on consumer perception during data analysis. Also, graphs and pie charts were used to present each item that was in the questionnaire. Also, the finding of the research from the analyzed data as well as the conclusion. The null hypothesis was also tested from the analyzed and presented data.

Gender of the respondent

The research project sampled 264 respondents, both female and male. There were 183 females and 81 males. The gender showed that many females were available for the study than males and had more knowledge of electronically transacted business than men. Also, many females bought their products online compared to males. The results showed that 70 % of those who bought products from the online shops were female and 30% were male. Also, the female had a positive perception of online shopping; thus, we rejected the null hypothesis that gender had no significant effect on the customer’s perception of online shopping. From the findings, the male should be encouraged and informed on the benefits of online shopping to improve their knowledge of the electronically transacted business. Also, online producers should improve on their trustworthiness to attract a significant number of customers. Females had significant preference and taste of purchasing and consuming online products and services. from gender analysis, we concluded that gender had a significant influence on how customers perceived and purchased online products

Mode of payment on consumer’s perception

The study investigated the mode of payment used by the customers to complete their online transactions. Investigating the method of payment was essential since it showed the behavior of the consumers and helped in understanding the way the online shop operated. Also, the mode of payment had an impact on how the customers meant decisions about online business. Form the research project. We asked the respondent the most preferred method of payment when purchasing products online. The questionnaires offered options of cash, credit or debit cards, and the apple pay. The respondent answered, according to the mode of payment that was more applicable to them. The results showed that 148 people used debit or credit cards to complete the amount of the products they bought from the online shop. Also, 63 customers preferred cash payment after the transaction since they had a low confidence level with the online organization. Among the respondents, only 53 people used apple pay to make the payments. The study indicated that the use of credit or debit card was more convincing for the customers to use since they had no time to queue the bank to receive liquid money. The study also argued that it was safer to transact using cards than liquid cash. Also, most customers were not aware of apple money, and several online organizations did not accept transactions using apple pay since it was slow. Most online shops did not accept cash as a means of payment since the customers were far from the business premises and a customer to order and pay for the products before delivery. From the study, we rejected the null hypothesis that the mode of payment had no significant impact on how customers perceived online marketing. From the findings, the study concluded that there was a meaningful relationship between the method of payment used and the customer’s perception of the electronically transacted business.

The CUSTOMERS WAY OF TRANSACTION

From the questionnaires, the respondents were to indicate the method they used to buy products and where they used mostly to buy their products and services. The respondents had multiple choices from the questionnaires to answer either from the online store or from the traditional stores. They were to judge the question of where they buy their products. The frequency was very vital for the problem. From the study,76% of the respondents purchased their products from the online shop, while 24% bought their products from the traditional stores. The implication was that most people in the Jeddah region in Saudi Arabia appreciated the online organization and had significant preference and taste for the business. Therefore, the people had recognized the growth and the advancement of technology that made it easier to transact business online. The adoption of new technology in business transactions fastened the process of purchasing and selling products that allowed many consumers to opt for online shopping. The research argued that online products were fresh compared to the conventional or traditional stores had been stocked for a long duration; thus, customers in Jeddah believed that online products are better and safe. From the study, we concluded that most people in the Jeddah area in Saudi Arabia appreciated technology and had embraced online shopping since the highest population used the online stores to purchase their products.

The relationship between age and customer preferences

The research established a significant correlation between the age of the customer and their choice for purchasing products. The age influenced the buying decision and the pattern of buying products from e-commerce. There was an indication that age changed the lifestyle of the customers. For instance, we noticed that the youth bought more products from the online shop than the older people. Indeed, as the age of people increased, their preferences for purchasing more products change and the patterns shrink. Also, we noticed that older adults remained indoors that affected how they bought in that it was difficult to see new items and the way they wanted.

On the other hand, the youth used to travel, and this affected how they purchased in that they reviewed new products in the market. From the study, age was a fundamental aspect of online marketing in that the youth participated more and had access to the internet and new technology. The null hypothesis that generation had no significant relationship with consumer preference is a reject. The study concluded that age had a meaningful relationship with how customers purchased products online.

Relationship between online prices and consumer purchasing power

The research established that online prices had an impact on how consumers purchased products from the online shop. The study argued that online prices had discounts at a higher rate than the traditional store’s price. Customers preferred online shopping because the organizations had fair deals, especially on Fridays that are known to be black. On black Fridays and the month of November, online prices had significant discounts; thus, more customers purchased their products from the electronically transacted business, especially on black Fridays. The results indicated that also prices had an impact on the demand for the products in the market. When the prices of goods and services increase, the customer purchased less of the product than when the rates were higher. We called out the forces of demand and supply harmonize to acquire equilibrium prices, thus market growth. Also, we recommended the government establish policies that will govern the prices of products to avoid exploitation of the consumer.

Also, from the study, some respondents argued that the online prices were unstable; hence fluctuated frequently; thus, the market could not be trusted. For instance, the prices of online foods ranged every time, and that affected the quantity and quality of the product delivered. Others explained that the prices were low; thus, they doubted the quality of the online products considering that the traditional stores offered the same product at a very higher price. The customers felt that there was a need for online prices to harmonize to reduce customer exploitation and dissatisfaction. The hypothesis that prices had an impact on purchasing power was subject to a test. From the data analysis, the project concluded that there was no significant relationship between the cost of the product and the quantity of the product purchased on the online market.

Government policies

Government policies had an impact on the operation and growth of online shops. The government influenced technical innovations on the electronically transacted business. The government helped in the formulation of law and policies that governed online shops. Also, the government-controlled and inspected the quality and quantity of the products produced and sold online to ensure no consumers’ exploitation by cartels. Furthermore, studies showed that it was very vital for the government to know the stakeholders of online shops and ensure registration of online shops to prevent illegal businesses such as drug trafficking and human trafficking. Also, we identified that international organizations were essential in developing mechanisms and systems that would help to reduce cybercrimes. The involvement of international organizations showed that online shops were worldwide. Therefore, everyone can purchase products from electronically transacted businesses across the globe. Besides, the government offered or guaranteed the right to privacy in that consumers have protection against frauds; thus, online shops can grow and yield much revenue for the government.

Customer interaction

Studies showed that 90% of the online shops understood what the customers wanted, making them produce products that meet the needs of the consumer. The digital marketing agency indicated that there was an excellent customer seller relationship that led to a significant market share and a tremendous competitive advantage. According to (Albert et al.,.2007) observed that good customer relations led to more purchasing power, causing the growth of the online business.

CHATER FIVE

Findings and recommendation

The research found out that online business was affected by age. The youth were the most participants in online shopping since they had access to the internet and appreciated technology. Also, older people were disadvantaged by online shopping. Their lifestyle did not change much most of the products offered online. We found that most of the customers used debit or credit cards to complete their transactions; that meant that the mode of payment had an impact on the customer’s perception of online shopping. We found that customers perceived online shopping as useful due to faster delivery and excellent customer interaction. Also, we found that gender has an impact on the customer purchasing power of online shopping. Females had much taste and preference for purchasing their products online. Male had the least percentage of 30, meaning that most men did not order products from online shops. We also found that most Jeddah people purchased most of their products from the online shops. Only a few people went to regular market stores in the town to buy products.

On the other hand, we recommended online organizations to improve on their security to guard customer’s information against malicious people. We also urged online companies to establish laws and policies to improve cybersecurity. Also, we encouraged organizations to create a strong password that is hard to trace, thus increasing security and customer privacy. We recommended the government to intervene in online shopping to prevent customer exploitation. We supported the customers to embrace online shopping. Generally, the project was very successful.

Conclusion

To conclude, from the research sample of 264 respondents, we came to know that there was no direct connection between the research objectives and the tested hypothesis. Thus, we rejected the research hypothesis that online consumers across Jeddah in Saudi Arabia had not increased due to increased insecurity on online shops. The number of online customers was many in Jeddah than those who used the traditional method of shopping for going to the stores to purchase products. The decisions of using online shops influenced the fact that they were faster and convenient for the customers. Jeddah people preferred the online market also due to standard and discounted prices. Most online shops had fair deals with manageable costs. Also, the use of new technology had a positive impact on the quality and the services offered by online shops. Also, age influenced the customer’s perception of online business. Most of the online customers were youth people since they had high access to the internet, which allowed them to transact more on e-commerce. The aged people were the least participants in the online shop due to their lifestyle. The mode of payment was essential in how people perceived the online business. To conclude, the null hypothesis was rejected on that online customers had not increased in number; instead, there were many people, 76% in Jeddah bought their products from the online shop.

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