Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Research Article: 2021 Vol: 24 Issue: 1S

Online Retailers in Jordan Factors Influencing Jordanian Customers' to Purchase Online

Ahmad M. A. Zamil, Prince Sattam bin Abdulaziz University

Ahmad Al Adwan, Al-Ahliyya Amman University

Ahmad Yousef Areiqat, Al-Ahliyya Amman University

Nihayah Mahrakani, Al-Ahliyya Amman University

Abstract

This paper presents the primer discoveries of a study researching the dispersion and the appropriation of online retailing in Jordan. It reports new examination that distinguishes and explores the key issues that decidedly and adversely impact the decision of Jordanian customers to purchase from online retailers in Jordan. Although Jordan has one of the largest and fastest growth of ICT marketplaces in the Arab region, e-commerce business exercises are not advancing at a similar speed. While the general examination venture includes exploratory examination utilizing blended techniques, the focal point of this paper is on a quantitative investigation of reactions got from a review of Jordanian customers, with the plan of the poll instrument being founded on the discoveries of a subjective examination revealed in a past paper. The main findings of the current analysis include a list of key factors that affect Jordanian customers' purchase from Jordanian online retailers, and quantitative indications of the relative strengths of the various relationships.

Keywords

E-commerce, Online retail, Online customers, Jordan

Introduction

The revolution of electronic commerce (e-commerce) has started in the 90s in the developed world. Many commercial organizations around the world have introduced e-commerce models in their businesses, looking for the numerous advantages that the online channel can give (Laudon & Traver 2016). Essentially, e-commerce is trade empowered by Internet innovations, including pre-deal and post-deal exercises and web-based retailing is a model of business to client (B2C) e-start which is online form of conventional retail (Zamil & Shammot, 2009).

Since 2000, internet business' fast development is evident in the created world. Worldwide online business spending has presently reached US$10.8 trillion and was US$0.27 trillion out of 2000 (Kamaruzaman, Handrich & Sullivan 2010). The United States, trailed by Europe, establishes the biggest offer with about 79% of the worldwide internet business income (Kamaruzaman, Handrich & Sullivan 2010). In any case, the African and Middle East locales have the littlest offer with about 3% of the worldwide web-based business income (Kamaruzaman, Handrich & Sullivan 2010).

Jordan has one of the biggest and quickest development of ICT commercial centers in the Arab district, e-commerce exercises are not advancing at a similar speed. Just 9% of Jordan commercial organizations, for the most part medium and enormous organizations from the assembling division, are engaged with online business. This paper is a piece of an exploration venture considering the dissemination of online retailing in Jordan. The focal point of this paper is on the examination of components that influence Jordanian customers’ decisions to buy from online retailers in Jordan.

Literature Review

Since the internet revolution, internet usage in business environment (e-commerce) has changed the way of doing business in SMEs. It is well known that e-commerce is essential for SMEs in enhancing their competitiveness, productivity, enlarge market and cost reduction. However, Jordan is facing slow adoption of e-commerce by SMEs. This paper reviews the strengths and weaknesses of the major models and theories relevant to technology adoption: technology acceptance model, theory of reasoned action, technology-organization-environment, diffusion of innovation and Hofstede's cultural dimensions. Also, the literature review shows the most common sequences in level of e-commerce adoption in SMEs: Rao model; Daniel model; Rayport and Jaworski model; Lefebvrea et al. model and leadership typologies. On the bases of these theories and models, a conceptual framework for SMEs' e-commerce adoption level in Jordan is suggested. This conceptual framework can be tested empirically for SMEs in Jordan as well as other Arab countries (AlRousan, Mohammad & Jones, 2016).

A few studies have focused on E-commerce adoption in Jordan; their main findings are presented in this section. The current status of E-commerce in Jordan represents a vital factor affecting this research. (Al-debei, 2015) found that Jordan has various adequate E-commerce prerequisites, such as technology and telecommunication infrastructure, organizations readiness and support, institutional and governmental support and community culture. Moreover, there are sufficient IT vendors who can provide Jordanian companies with required hardware and software for their move towards Ecommerce. However, the study identified that Jordanian community culture is not germane to E-commerce adoption, and cultural beliefs and practices constitute a major impediment to this major change in the local business market. In conclusion, many factors militate against organizations’ move towards E-commerce in Jordan, mainly attributable to cultural factors and a lack of trust in the security of E-payment systems (Al Masarweh, Mohammed, Al Masaeed, Sultan, Qaisi, Laila, Hunaiti, & Zaid, 2016).

Research Methodology

The entire undertaking contemplating on the web retail in Jordan is based on the blend of qualitative and quantitative methodologies. A qualitative report directed first for exploration reasons and followed by a quantitative methodology dependent on qualitative discoveries for testing reason. This kind of approach is called exploratory mixed methods design, which is done "to explore a phenomenon, and afterwards [collect] quantitative information to clarify connections found in the qualitative outcomes”.

The mixed-methods approach assists with giving an inside and out examination of the research problem, while the qualitative study was led in independent research, the focal point of this paper is on quantitative analysis dependent on the qualitative findings. In the qualitative study, interviews were directed with 40 Jordanian members (20 males and 20 females) aged from 16 to 45 years. A qualitative substance analysis was utilized to identify the elements that emphatically and adversely impact customers & clients' choice to buy from online retailers in Jordan.

In this paper, a questionnaire survey based on the qualitative study’s findings is used to gain more information about the relative strengths of these factors, two forms were distributed. Paper and online reviews were gathered, with half for each structure. (Zamil & Shammot, 2011). The aim is to gather answers from 700 participants which are as yet progressing; be that as it may, cutting-edge the absolute number of participants revealed in this paper arrived at 412. They were chosen randomly with thought to represent half of every sex, cover distinctive age groups, and come from various cities and urban communities in Jordan. (Algharabat, Zamil & Vasista, 2015).

Results & Analysis

This segment presents a summary and analysis of the reactions gathered to date from 414 participants. Male respondents represent half of the example, and female respondent’s half. Respondents matured 15-25 speak to 27.2% of the example, contrasted and 49.0% for those matured 26-35 and 23.8% for those matured 36 and over. About 28.6% of the sample are occupants of the capital city (Amman), compared with 26.0% for (Al-Zarqaa'), 11.7% for (Irbid), 28.2% for residents of more modest urban areas, and the remaining 5.8% for residents of more modest metropolitan places.

From Table 1 and Figure 1, it can be seen clearly that the most serious inhibitors tend to be related to a lack of trust and/or experience with online purchasing.

Table 1
Inhibitors of Online Purchases By Jordanian Customers From Jordanian Vendors
Identifier Inhibitor Selected by % of respondents Rank
IN1 Lack of experience in buying online 40.8 4
IN2 Not trusting e-retailers in Jordan 38.6 5
IN3 Not having easy and fast access to the Internet 7.3 10
IN4 Cannot inspect product, worry about quality 58.0 1
IN5 Lack of mailbox for home 31.8 7
IN6 Do not know e-retailers in Jordan 38.6 6
IN7 Not comfortable paying online using credit card 27.7 8
IN8 Do not understand if website (or part) is in English 20.9 9
IN9 No clear regulations & legislations for EC in Jordan 53.4 2
IN10 Don't trust that personal info. will remain private 44.7 3
IN11 Others 6.1 11

Figure 1: Factors Inhibiting Online Purchases By Jordanian Customers From Jordan E-Retailers

From Table 2 and Figure 2 present basic survey results with regard to factors that would tend to enable or encourage customers to purchase online from Jordanian e-retailers.

Table 2
Enablers of Online Purchases By Jordanian Customers From Jordanian Vendors
Identifier Enabler Selected by % of respondents Rank
EN1 Owning house mailbox 37 5
EN2 Easy access & fast Internet speed 33 7
EN3 Competitive prices 57 3
EN4 Local banks make owning credit cards easier 21 9
EN5 Provision of educational programs 29 8
EN6 Government support, supervision & control 58 2
EN7 Well-designed retailer websites (photos of products) 37 6
EN8 Physical shop as well as online shop 65 1
EN9 Trustworthy payment options other than credit cards 45 4
EN10 Others 7 10

Figure 2: Factors Facilitating Online Purchases By Jordanian Customers From Jordanian E-Retailers

Conclusion

All in all, trust in Jordanian e-retailers (or its absence) is likely the most significant factor influencing current and expected Jordanian clients. From this, it is sensible to draw the suggestion that the government can play, on the off chance that it so wishes, a key job in directing, managing, and encouraging e-retail in Jordan. The basic inquiry, at that point, becomes whether there are substantial avocations for the legislature to take such an interventionist job in typical trade, rather than the instances of e-government and e-learning which include open administrations or "social" products. Such an inquiry must be left to future examination. (Zamil, 2019).

References

  1. Al-Masarweh, M., Al-Masaeed, S., Qaisi, L., & Hunaiti, Z. (2016). E-Commerce adoption at customer level in jordan: an empirical study of philadelphia general supplies. International Journal of Advanced Computer Science and Applications, 7(11).
  2. Al-Allaq, B., & Zamil, A.M. (2001). The logical relationship between perceived service quality and customer satisfaction. Irbid Journal for Research and Studies, 3(2).
  3. Al-Bakri, M.K. (2015). “The factors affecting e-commerce adoption by Jordanian SMEs”, Management Research Review, 38(7).
  4. Algharabat, R., & Zamil, A.M. (2013). The impact of retail store global-mindedness on jordanian consumers’ patronage intention. International Journal of Marketing Studies, 5(4).
  5. Algharabat, R., & Zamil, A.M. (2013). An empirical investigation of 3d-based information systems success for online retailers. International Journal of Technology Marketing, 8(3), 316-336.
  6. Algharabat, R., Zamil, A.M. & Vasista, T.G.K (2015). The influence of retailer enterprise marketing information system on bullwhip effect. International Journal of Business and Management, 10(3).
  7. Algharabat, R., Zamil, A.M. & Vasista, T.G.K (2015). The influence of retailer enterprise marketing information system on bullwhip effect. International Journal of Business and Management, 10(3).
  8. AlSudairi, M., Vasista, T.G., Zamil, A.M., & Algharabat R.S. (2012). Mitigating the bullwhip effect with e-word-of-mouth: An e-business intelligence perspective. International Journal of Managing Value and Supply Chains (IJMVSC), 3(4).
  9. Chaffey, D. (2004). E-Business and E-Commerce Management (second edn). Pearson Education Limited, Harlow.
  10. Creswell, J.W. (2008). 'Mixed Methods Designs', in Educational Research: Planning, Conducting, And Evaluating Quantitative and Qualitative Research, (3rd edn). Pearson Education, New Jersey, pp. 551-75.
  11. EIU (Economist Intelligence Unit) (2010). Digital economy rankings 2010: Beyond e-readiness, The Economist Intelligence Unit.
  12. E-Mall 2010, About E-mall, viewed 2 April 2011,
  13. Feilzer, M.Y. (2010). 'Doing mixed methods research pragmatically: Implications for the rediscovery of pragmatism as a research paradigm'. Journal of Mixed Methods Research, 4(1), 6-16.
  14. Gibbs, J, Kraemer, K.L., & Dedrick, J. (2003). 'Environment and policy factors shaping global e-commerce diffusion: A cross-country comparison'. The Information Society, 19(1), 5-18.
  15. Global Technology Forum (2007). South Korea: Overview of e-commerce, Economist Intelligence Unit.
  16. Hamid, M. (2011). Souq.com is dedicating e-commerce techniques, Arabian Business.
  17. Johnson, R.B. & Onwuegbuzie, A.J. (2004). 'Mixed methods research: A research paradigm whose time has come'. Educational Researcher, 33(7), 14-26.
  18. Kamaruzaman, K.N., Handrich, Y.M. & Sullivan, F. (2010). 'e-Commerce adoption in malaysia: Trends, issues and opportunities', in R Ramasamy & S Ng (eds), ICT Strategic Review 2010/11 E-commerce for Global Reach PIKOM (The National ICT Association of Malaysia), Putrajaya, Malaysia, pp. 89-134.
  19. Kraemer, K.L., Dedrick, J., Melville, N., & Zhu, K. (2006). Global e-commerce: impacts of national environment and policy. Cambridge Univ Press, New York.
  20. Laudon, K.C. & Traver, C.G. (2016). E-Commerce Laudon's E-Commerce 2016: Business, Technology, Society. 1944- author.
  21. Hajli, M., Bugshan, H., Hajli, M., & Kalantari, A. (2012). “E-Commerce Pre-Adoption Model for SMEs in Developing Countries”. In Proceedings of the 2012 International Conference on e-Learning, e-Business, Enterprise Information Systems and e-Government, Las Vegas, United States.
  22. Morse, J.M. (2003). 'Principles of mixed methods and multimethod research', in A Tashakkori & C Teddlie (eds), Handbook of Mixed Methods in Social and Behavioral Research, Sage Publications, Thousand Oaks, California, pp. 189-208.
  23. Nair, M. (2010). 'The E-commerce ecology: Leapfrogging strategies for malaysia', in R Ramasamy & S Ng (eds), ICT Strategic Review 2010/11 E-commerce for Global Reach PIKOM (The National ICT Association of Malaysia), Putrajaya, Malaysia, pp. 89-134.
  24. Nielsen (2008). Trends in Online Shopping A Global Nielsen Consumer Report, New York.
  25. Permwanichagun, P., Kaenmanee, S., & Naipinit, A. (2013). “The external environments factors affecting success for implementation: In context of sole proprietorship e-commerce entrepreneurs in thailand”. International Business Management, 9, 122-127.
  26. Zaker, R., & Ansari, A. (2013). “Towards improving quality of e-commerce websites in hospitals”. Istanbul, Turkey 8-10.
  27. Shammot, M.M., & Zamil, A.M. (2009). Obstacles of mobile bank usage in saudi arabia as viewed by customers. Academy of Business Journal, 5.
  28. Huang, Z., & Benyoucef, M. (2013). “From e-commerce to social commerce: A close look at design features”. Electronic Commerce Research and Applications, 12(4), 246-259.
  29. Zamil, A.A., Salameh, A., & Sulphey, M.M. (2020). Towards achieving web customer loyalty: an innovative research model. Pacific Business Review International, 13(1), 43-52
  30. Zamil, A.M., Abu-AlSondos, Ibrahim, A., & A Salameh, A. (2020). Encouraging consumers to make online purchases using mobile applications, how to keep them in touch with e-services providers? International Journal of Interactive Mobile Technologies, 14(17), 56-65
  31. Zamil, A.M. (2009). Electronic shopping based on internet motivations and barriers for jordanian customers (field study). Arab Journal of Administration, 29(1).
  32. Zamil, A.M. (2011). Customer relationship management: A strategy to sustain the organization's name and products in the customers' minds. European Journal of Social Sciences, 22(3), 451-459.
  33. Zamil, A.M. (2011). The impact of Word of Mouth (WOM) on the purchasing decision of the jordanian consumer. Research Journal of International Studies, 20(20), 24-29.
  34. Zamil, A.M.A., Al Adwan. A., & Vasista, T.G. (2020). Enhancing customer loyalty with market basket analysis using innovative methods: a python implementation approach. International Journal of Innovation, Creativity and Change, 14(2), 1351-1368
  35. Zamil, A.M., & Shammot, M.M. (2009). Impact of demographic factors in the use of the Saudi consumer online purchase. Academy of Business Journal, 5.
  36. Zamil, A.M., & Shammot, M.M. (2011). Role of measuring customer satisfaction in improving the performance in the public sector organization. Journal of Business Studies Quarterly, 2(3).
Get the App