A STUDY ON FACTORS INFLUENCING NIGERIAN ONLINE CONSUMERS’ PURCHASE BEHAVIOUR

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The era of internet technology has had a favorable impact on our everyday lives and routines as well as on how businesses work around the world. The internet has provided businesses and individuals with a new means of communication as well as opportunities to communicate and access information in entirely new ways (Kumar & Dange, 2012).

Essentially, electronic commerce (e-commerce) is one of the most important elements of the internet era, involving the purchase and sale of products and services over the internet (Gabriel et al., 2016; Omotayo & Omotope, 2018). In most parts of the world, it is clear that e-commerce is rapidly becoming a profitable means of managing enterprises (Fayad & Paper, 2015). Nonetheless, the growing popularity of e-commerce has resulted in a bigger shift in consumer preference for online buying. As a result, there is a tremendous influx of online discounts and promotions on various e-commerce websites, urging consumers to go for their purchasing needs, especially in the retail industry (Singh et al., 2018).

However, despite the multiplicity of settings and elements that impact its adoption, it has been seen that response to online shopping is expanding rapidly in various parts of the world (Venkatesh, Thong, & Xu, 2012). Interestingly, internet penetration is surprisingly high among Nigerian customers. As a result, Internet shopping has become a popular medium of commerce among Nigerians, saturating every marketing effort (Omotayo & Omotope, 2016). Prior research revealed that, after South Africa, Nigeria has one of the fastest smartphone market penetration rates in Africa (Osuagwu cited in Ayodele & Ifeanyichukwu, 2016).

However, the online shopping system is still in its early stages in lower-middle income countries, and requires consideration. As a result, having a comprehensive understanding of the factors that drive customers' online purchase behaviour is critical to comprehending the phenomenon of online shopping (Rahman et al., 2018). Despite a tremendous increase in internet usage and technological adoption in Nigeria, internet shopping is still limited in some areas. Investigating the underlying elements that determine consumers' acceptance of online purchasing is critical in this regard. As a result, understanding consumers' attitudes toward online purchasing can aid online retailers in predicting and evaluating internet shopping intentions as well as future advancements in the subject area (Nwankwo et al., 2019).

In light of the foregoing, the goal of this article is to critically examine the elements that influence customers' attitudes regarding online purchasing, with a focus on Nigerian customers. The remainder of this study is organized as follows: Section two covers the conceptual framework and a literature review. The third section looks at the elements that influence people's decision to shop online. The proposed research model is presented in section four, followed by the conclusion and ramifications.

1.2 STATEMENT OF THE PROBLEM

Online shopping has a lot of advantages that traditional shops do not, including convenience, a large selection of items, user-friendly websites, and time savings. Customers may purchase any goods from any area of the globe at any time without having to physically visit the stores. Customers may make a purchase order at any time over the internet, and transaction expenses are reduced. It also allows clients to do business 24 hours a day, seven days a week without the need for physical contact. Online purchasing aids in the formation of consumer-supplier relationships, as well as consumer loyalty and retention. Although the e-commerce industry is on the increase on a daily basis, its maximum has not been reached and this is as a result of various factors influencing consumers' online purchase behaviour.

This study seeks to investigate the factors that influence the Nigerian consumer's online purchase behaviour.

1.3 OBJECTIVE OF THE STUDY

The primary aim of this study is to understand the factors influencing Nigerian online consumer purchase behaviour. Thus, the following objectives:

1.    To determine the current rate of Nigerian online consumer purchase behaviour.

2.    To determine the factors that influence Nigerian online consumer purchase behaviour.

3.    To explain the challenges facing Nigerian online consumer purchase behaviour.

4.    To proffer possible solutions to the challenges facing Nigerian online consumer purchase behaviour.

1.4 RESEARCH QUESTIONS

The following questions guide this study:

1.    What is the current rate of Nigerian online consumer purchase behaviour?

2.    What are the factors that influence Nigerian online consumer purchase behaviour?

3.    What are the challenges facing Nigerian online consumer purchase behaviour?

4.    What are the possible solutions to the challenges facing Nigerian online consumer purchase behaviour?

1.5 SIGNIFICANCE OF THE STUDY

This study will be significant to the e-commerce industry as it will reveal certain factors that influence the Nigerian online consumer purchase behaviour. It will also expose some of the challenges facing Nigerian online consumer purchase behaviour, thus giving marketers an edge in understanding consumer online purchase behaviour.

1.6 SCOPE OF THE STUDY

This study will only cover the factors influencing Nigerian online consumer purchase behaviour. It will also look into the challenges facing Nigerian online purchase behaviour and possible solutions to these challenges. Consumers of Rite Food Limited products in Lagos state shall be serve as enrolled participants for this study.

1.7 LIMITATION OF THE STUDY

During the course of this study, the researcher was only limited by the availability of funds to delve deeper into the study.

1.8 DEFINITION OF TERMS

CONSUMER: An individual who purchases goods for personal use.

PURCHASE BEHAVIOUR: Consumer Buying Behaviour refers to the actions taken (both on and offline) by consumers before buying a product or service, in this case, online.

ONLINE PURCHASE BEHAVIOUR: is a kind of individual's overall perception and evaluation of a product or service during online purchase which could result in a bad or good way.