Consumer perception of e-commerce in

relation to its adoption in Zimbabwe:

Case of Harare.

Supervised by Mr. Makore

Problem statement

Despite the numerous benefits of e-commerce and its acceptance in advanced

Western countries, the pace and level of acceptance is lower in the emerging
markets (Ashraf et al, 2014).
In that regard developing countries need to identify the problems that slow down
the adoption of e-commerce (Makame et al, 2014).
Moreover due to lack of knowledge on e-shoppers behavior, marketers face
difficulty in formulating appropriate marketing mix (Goswani, 2014).
A research carried out by Dube et al(2009) on the use of e-commerce in banking
insudtry showed that while the majority of the banks in Zimbabwe have adopted
internet banking, usage levels have remained relatively low, as not many
customers are using this innovation in Zimbabwe. Therefore this research seeks
to unbundle the perception of consumers in relation to e-commerce adoption in
Zimbabwe.
1.4 Objectives
1.4.1 Main objective
1. To identify the perceptions of consumers in relation to e-commerce
adoption in Zimbabwe.
1.4.2 Specific objectives
To understand the barriers to the adoption of e-commerce by consumers in
Zimbabwe
To assess how the ease of use of e-commerce by consumers have an effect on
the adoption of e-commerce.
To evaluate how perceived usefulness of e-commerce have an effect on the
adoption of e-commerce.
To understand how consumers interpersonal influences e-commerce adoption.
5 Research Questions

Are there significant barriers affecting e-commerce adoption in Zimbabwe?

Is ease of use of ecommerce facilitating e-commerce adoption in Zimbabwe?
Does perceived usefulness of e-commerce have an effect on the adoption of
e-commerce?
Are social interactions having an effect on the adoption of e-commerce?
Methodology

The Technology Acceptance Model (Davies 1989) was adopted as both the
theoretical and conceptual framework.
Literature review

The Technology Acceptance Model was used as the conceptual framework to

review the variables namely perceived ease of use, perceived useful, barriers
to adoption and consumers interpersonal influences.
The Chapter also zero in on the use of e-commerce in Zimbabwe in relation to
its adoption in line with available literature.
This leads to the design of a questionnaire that capture the consumer
perception of e-commerce in Zimbabwe based on empirical studies and TAM
model
Research Design

The study uses explanatory research. The emphasis here is on studying a

situation or a problem in order to explain the relationships between variables
(saunders,2009).
Explanatory research is deeper in the sense that it describes the phenomena
and attempt to explain why behavior is the way it is (Adams, Khan and
Raeside, 2014).
A deductive approach, in which the researcher develops hypotheses and
design a research strategy to test the hypothesis is employed (Saunders,
2009:124).
Research paradigm

the study use the aspect of subjectivism, it holds that social phenomena are
created from the perceptions and consequent actions of those social actors
concerned with their existence (Saunders, 2009. p110).
On the positivism aspect the study uses structured methodology in order to
facilitate replication (Gill and Johnson, 2002), emphasis is on quantifiable
observations that offer themselves to statistical analysis. (Saunders, ibid).
Method choice

A combination of quantitative and qualitative method to test the conceptual

framework of consumer perception that leads to online purchase intentions
and adoption is undertaken.
Research strategy

A Survey strategy is employed in this study. According to Scheuren (2004, p.

9) the word survey is used most often to describe a method of gathering
information from a sample of individuals.
For each research question one or more survey questions are then formulated
(Leeuw. E, 2008).
The respondents are selected through simple random sampling of adults aged
20 to more than 50 years. This is a sampling technique where selections are
made purely by chance (Mathers, 2009). The survey instrument used is a
questionnaire.
Every respondent is asked to respond to the same questions. Such method
provides a systematic way of gathering responses from a huge sample before
proceeding to quantitative analysis (Saunders et al., 2009: 361).
Data collection

Consideration is put into using secondary data. Secondary data can provide a
useful source from which to answer, or partially to answer, research
question(s) (Saunders 2009, ibid).
Primary data is collected in two ways online survey and In-Person Surveys
/Self administration of questionnaire.
Sample population size

The 2012 Zimbabwe population services reported that Harare has at total
population of 2,123,132 inhabitants (ZIMSTAT, 2012). With a confidence level
of 95%, margin of error of 5% survey monkey calculator was used that
determined the sample size population to be 386 respondents. The number is
in tandem with Market Research (2013) which stated that the rule of thumb
for basic studies of consumers is 300.
So for this research any number of respondents from 300 to 386 was
acceptable hence data obtained from 320 respondents for this study was
adequate.
Data input, coding and Analysis

Questionnaire responses were entered into a spreadsheet after being coded

by assigning values responses.
Once data was entered, analysis was carried out using both SPSS and Stata.
Initial analysis explored data using both tables and graphs. Individual values
for each variable is presented in table (frequency distribution). Graphs are
used to show lowest and highest values. To show trends the researcher uses
bar graphs and pie charts in which data values represents the trend (Anderson
et al. 1999).
Subsequent analyses involved describing the data and exploring relationships
using statistics specifically Chi-square and t-test.
Chi-square test

The researcher determine whether or not there is a relationship between two

variables. The null hypothesis in a two-way table is that there is no
association between the row variable and the column variable and the
alternative hypothesis is that there is an association.
The statistical significance of relationships among selected variables was
determined using the Chi-square test. The level of significance was set at
0.05.
Findings

Gender association - Chi-square test showed that there is an association

between gender and how easy to find a consumer website.
Gender was also found to have an association with frequency of purchase.
Since gender was also tested through chi-square for association with barriers
and an association was established.
The Chi-square tests confirmed that adoption of e-commerce is low and
affected by attitude and frequency.
The reason for low adoption is supported by the products bought from the
Internet by consumers which are cars, books and journals which are durable
Having found the Association between gender and frequency, the gender
variable was then adopted to test the hypothesis.
Findings continued

The low adoption of e-commerce is also supported by what consumers said

about finding consumer shopping website. 50% of respondents said its not
easy to find a shop online sighting lack of information and delay in delivery of
goods.
Consumers wanted companies to also improve on provision of information by
responding to requests early was the highest 38%, followed by provision of
prices at 35%, deliver of products in time at 29% and make it easy to pay
goods online at 19%.
Most respondents answered that they use the Internet for participating in
social networks such as Facebook at 294 respondents, followed by reading
and watching news or listening to radio and online shopping was the least
with 143 respondents.
Findings continued

Consumers were also asked on obstacles that are likely to prevent them from
buying online. Most respondents pointed to security issues at 208
respondents, followed by 173 respondents who pointed out that buying from
the Internet is difficult for them.
Consumers were also asked on obstacles that are likely to prevent them from
buying online. Most respondents pointed to security issues at 208
respondents, followed by 173 respondents who pointed out that buying from
the Internet is difficult for them. This was followed by delivery problems at
frequency of 156, payment problems at a frequency of 95 and privacy at 86
out of 320 respondents. Lack of after sales and limited access to Internet
were ranked last at 52 respondents each.
 Hypothesis testing t-test
Hypothesis T-Values Results
1. H1- Perceived Online purchasing barriers positively impacts e- 3.152 Supported
commerce adoption.

1. H2- Consumers perceived ease of online shopping positively 3.16 Supported

impacts their attitude towards e-commerce adoption.

1. H3- Consumers perceived usefulness of online shopping positively -204 Rejected

influences their actual online shopping.

1. H4-Consumers perception of Interpersonal influence is positively -339 Rejected

associated actual online shopping.

Discussion of relationships of findings

Discussion on relationships of Perceived Online purchasing barriers and e-

commerce adoption.
The results show that perceived online purchasing barriers has a positive
influence on the attitude towards e-commerce adoption in Zimbabwe.
Hence companies need to guarantee consumers on their money during
transaction and guarantee that goods will be indeed delivered.
Hence the adoption of e-commerce adoption at the moment is being
affected by the fear of losing value of money by consumers.
Discussion on perceived ease of online shopping and
attitude towards e-commerce adoption.

The findings shows that perception of the ease of use of e-commerce

positively impacts on the adoption of e-commerce in Zimbabwe. The ease of
use of the Internet as a shopping means is the experience of the buyer while
buying or browsing online. Pihl et. al (2006) states that it is essential that the
Internet vendors show concern for users needs and also provides clues to
compensate the lack of the physical experience, offered in traditional
shopping.
Discussion on the relationship Consumers perceived
usefulness of online shopping and actual online shopping

The study did not statistically support that the perceived usefulness of online
shopping positively impacts actual shopping. The notion that consumers are
driven to purchase online because of its usefulness is hence challenged. This
study believes that this result is subjective of products that are bought
online. The study has shown that consumers are willing to buy cars, books, e-
books, journals and accessing financial services that includes banking.
Discussion on the relationship of Consumers perception of
Interpersonal influence and actual online shopping

The findings of the study statistically shows consumers perception of

interpersonal influence does not positively influence actual online shopping.
An explanation would be that consumers in Zimbabwe are not easily
motivated to shop online by close friends and family members.
Recommendations
The results shows that the adoption of e-commerce is low but most
consumers are using the Internet with 100% of the respondents being Internet
users.
The study shows that most Consumers are more likely to buy goods from the
Internet through an influence of website advertising at 39% compared to
family and friends recommendation at 33%, search engines 33%, and radio at
18.6%.
This shows that that consumers have a positive self-efficacy towards e-
commerce adoption more than Interpersonal influence and targeting can be
done through social media such as Facebook where most respondents spend
their time at a frequency of 294 out of 320, reading and watching news at 235
out of 320 respondents.
Consumer targeting and ease of use of websites can be enabled through
replying to requests for more information promptly at 38%, deliver products
early 29%, making easy to pay products online and providing prices at 11%.
Further research suggestion

Though self-efficacy was not part of the study, the trend shows that
consumers are likely to decide on themselves towards online actual buying
more than interpersonal influence hence the need to study how advertising
especially through social media can affect e-commerce adoption in
Zimbabwe.
There great need to research how time spend on the Internet by users
participating into social networks and reading news can be used to allure
consumers towards positive attitude for online purchasing
Thank you