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THE INTENTION IN PURCHASING ONLINE FROM PRODUCTATTRIBUTES

Haslinda Musa1, Mohd Amin Bin Mohamad1, Juhaini Jabar1, Juliana MohdSam*, Fadhlur Rahim Azmi1

1 COSSMET, Institut Pengurusan Teknologi dan Keusahawanan *Universiti Teknikal Malaysia Melaka (UTeM), 76100 Durian Tunggal,

Melaka, Malaysia E-Mail: haslindamusa@utem.edu.my

ABSTRACTThis research paper examines the intention of buyer to purchasing online, by theinfluences of three types of product attributes which are features, functions andbenefits and figure out the relationship of these variables. Four (4) IPTAs hasbeen chosen when developing the model of buyer intentions where students have beenasked several set of questions to reflect their perceptions of product attributes.The IPTAs involved in this study includes UTEM, UKM, UUM, and UNISZA. Both onlineand offline survey through the distribution of questionanires has been completed,and the data collected were analysed quantitatively, from simple analyses such asmean scores, to more sophisticated analysis such as multiple regresssion. Theresult shows that the variables of product attributes are significant towardsonline purchasing among students.

Keywords: Product attribute Online buyer Student

INTRODUCTIONThe popularity of Web 2.0 has helped in the growth and public popularity of

social networks and has created a new world of collaboration and communication(Sanjukta and Kristian, 2011). The internet has become one of the most importantcommunication channels in the world and growing internet usage is motivating somechanges in the consumer purchasing process (Casalo et al., 2007). At the presenttime, the internet is not only a networking medium, but also as a transactionmedium for consumers at global market in the world, and becomes dominant retailersin the future. The most necessary element of e-retail offers a direct interactivechannel as well as no time definition, people and place. Shop on the Internetbecomes an alternative to consumers since it is more comfortable than conventionalshopping which usually attributed to anxious, crowded, traffic jam, limited time,parking space and etc (Eri, Y., Islam, M. A., & Daud, K. A. K. 2011). It isbecause of the rapid diffusion of information technology system in the world.There have a lot of social media as a medium totransfer production of customer forexample Facebook. According to Universal Maccann International (2008), socialmedia is one of the most popular needs among internet user. It is defined as“online applications, platforms and media, which aim to facilitate interactions,collaborations and the sharing of content”. The most important in online businessare product attributes to attract customer bought the product. The researcherfocus three items in product attributes. Figure 1 shows the research model.

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Figure-1. Research Model

PRODUCT ATTRIBUTESAccording to Nyrud et al. (2008), emphasized in an early article in wood-

product attributes that it is of substantial importance to identify (forest)product attributes that are desired by customers so that the firm can deliver aproduct and meets consumer expectations. According to Chryssochoidis et al.(2007), several other studies suggest that the influence of the COO -effect depends not only on the country of origins or the product category, but onspecific product attributes as well (attribute-specific). It shows that the mostimportantof product attribute towards sale performance and influence of buyerintentions. Refers to the country of an origin of a product made on its labelinfluences consumers’ perceptions of its quality country-specific yet themagnitude of the effect depends on the product category product-specific(Balabanis and Diamantopoulos, 2004). Product attributes information is associatedwith marginal utility and curvature (satiation) parameters of the various utilityfunctions (Kim, J., Allenby, G. M., & Rossi, P. E, 2007).

BENEFITS OF PRODUCTIn this part, the researcher focuses on three dimensions which are testimony

to customer, quality and design of the product. According to C. Merle Crawford etal. (2011) benefits are the most desirable form of protocol to use better thanfunctions or features. An advantage of specifying the protocol in terms of thebenefits is that places no (or very few) constraints on the R&D staff: they aregiven free rein to figure out how best to design the product so that it providesthe desired benefit. According to Heyer, K. (2007) customer testimony willcontinue to be relevant in the same way that it has always been relevant;customers remain the most objective marketplace participants. Consumers shouldrely more on product recommendations of these products of for search products(Senecal et al., 2004). According to Senecal et al. (2004), from word-of-mouth(WOM) influence decision-making for buying the product. For example “this is thebest product of the market”.

According to Slotegraaf et al. (2004), the results show that the effect ofattribute satisfaction with satisfaction with product quality asymmetricallyshifts over time, depending on the resolvability of the attribute. Besides, itappears that customers may judge the quality of products under warranty inaccordance with an attribute-specific assessments, which consequently point to theimportance of firms’ examining satisfaction from an attribute level. However,according to Nelson, (1974) in journal Senecal et al. (2004) said search qualitiesare those that “the consumer can determine byinspection prior to purchase,” andexperience qualities are those that “are not determined prior to purchase”

FUNCTIONS OF PRODUCT

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In this part, the researcher focus on two dimensions which are informationof product and target user. According to C. Merle Crawford et al (2011) somepeople feel a performance parameter (a function) may come to be e-pressed as adesign parameter. For example, on the matter of the car pickup above, thestatement might be “Use the new German 11-Z engine.” Such a new engine would be atechnology, but clearly might be a solution to a need, not a description of it,there are probably many other ways rapit pickup could be achieved.

According to Azad, N., & Hamdavipour, L. (2012), the result of theirresearch shows that the informative factors such as product information and tradename play the most important role on choosing a product and give impact on thecustomer’s decision for buying a product. Its show that, the importance ofinformation about product and give influence to buyer intentions. Based on Jie andStreet (2010), the research supported one of positive perception towardadvertising which found in research that stated users rating the advertisingpositively, since they think that there are availability of information aboutproduct that can be learnt anytime.

According to Zhou et al (2007) traditionally, shopping is an activity morefavoured by women. It is women who are usually in charge of household shopping andhold more positive attitudes towards the traditional store and catalogue shoppingthan their male counterparts (Alreck and Settle, 2002). However, the new shoppingchannel provided by the Internet seems to result in a different, if not opposite,gender pattern. Although there was no significant difference between onlineshoppers and non-shoppers in terms of gender (Donthu and Garcia 1999), men werefound to make more purchases (Li et al. 1999; Stafford et al. 2004) and spend moremoney online (Susskind, 2004) than women. Men’s perceptions of online shoppingwere approximately the same as (Alreck and Settle 2002) or even more favourablethan (Slyke et al., 2002) those of female consumers.

FEATURES OF PRODUCTIn this part, the researcher focuses on two dimensions which are pictures of

product and packaging of the product. According to C. Merle Crawford et al.(2011), technical people often come up with features first, based the technologiesthey have. According to Zhou et al. (2007), online consumers are becomingincreasingly diversified. It is shown in this study that various consumer factorsinfluence online shopping. Accordingly, the requirements for information contentand presentation format provided by online retailers may differ. Therefore, anoptimal online marketing strategy is to personalize shopping environments to meetthe needs and preferences of different consumers (Zhou et al. 2007). Any productwith good packaging with sufficient information on labelling and suitable labelwill have a better change of absorbing customer’s attractions (Azad, N., &Hamdavipour, L., 2012). According to Silayoi and Speece (2007) study, theyexamined these issues using a study among consumers for packaged food products inThailand, which is a very competitive packaged food products market. Their resultsindicated that perceptions about packaging technology played the most importantrole in consumer to purchase. Williams et al. (2008) studied a life cycleperspective on environmental effects of customer focused packaging development.The study investigated the possibilities of increasing customer satisfaction andreducing the environmental effect from food-packaging systems in a life cycleperspective, using results from a study on consumers' demands on packaging basedon Kano's theory of attractive quality. Their results showed that there were somepotentials to increase customer satisfaction and at the same time decrease in theenvironmental impact of the food-packaging system, especially when the packagingdesign assists to reduce flood losses. Ogba and Johnson (2010) performed aninvestigation on how packaging affects the product preferences of children and the

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buyer behaviour of their parents in the food industry. This shows that theimportance of packaging give buyer intention to buy the product.

RESEARCH PROBLEMThe Internet is the world’s biggest shopping mall that allows enterprises to

do their business with low cost involved, yet covering global market (Paynter, J.,& Lim, J, 2001). Based on Berita Harian Online (2015), the number of internetusers in Malaysia is expected to increase to 25 million by 2015 from 18 million in2012, according to the 2013/3014 Economic Report released by the Finance Ministryhere today. The report said the rate of household broadband penetration increasedto 66.8 % at the end of June 2013, while the mobile phone penetration rate exceeds100 %, there are now 42.6 million subscribers. Nowadays, online business is theone of platform to distribute product or service direct to the customer. In onlinebusiness, product attribute is one of the strategies for new product management toattract buyer intentions. Mostly in online buyer, they look products that giveintentions for the first look to them. To overcome this problem, online seller useproduct attributes to attract customer buy the product. This shows that internetusers in Malaysia are more likely to online shopping. This problem occurs becausethe facilities are widely available through online as discussed in the productattributes. The potential online shopping users can access lots of informationregarding product attributes. According to Zhou, L., Dai, L., & Zhang, D. (2007),the potential benefits of online shopping for consumers include convenience,various selection, low price, original services, personal attention, and easyaccess to information, among others.

RESEARCH QUESTIONThroughout this study, the research questions are what is the relationship

between the feature of the product and the buyer intentions? How the benefit ofthe product can influence buyer intentions in online purchasing? And what is therelationship the function of rhe product and the buyer intentions?

RESEARCH OBJECTIVEThroughout this study, the research objectives are to determine the

relationship between feature of the product towards buyer intentions in onlinepurchasing, to study benefits of product influence buyer intentions in onlinepurchasing and to determine the relationship between the function of a product andbuyer intentions in online purchasing.

SCOPE AND LIMITATIONS OF THE STUDYThe scope of research is limited only product attribute and concentrate of

three characteristics which are featured, benefit and function of the product. Thelocation of this study is limited of Student IPTA at UTEM, UKM, UNSIZA, UUM,Malaysia and others.

IMPORTANCE OF THIS STUDYThe researcher hopes that the research will help the online business to get

insight on the relationship between product attributes and buyer intentions. Theresearcher also would like to know the effect of product attributes towards buyerintentions. In addition, the purpose of this study is to become expert in theseresearch areas. The researcher also aims to increase the skill and knowledge aboutproduct attributes.

RESEARCH DESIGN

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The researcher used conclusive research design for this research project.Conclusive research design is meant to provide information that is useful inreaching conclusions or decision-making. This purpose of conclusive research is toprovide a reliable or representative picture of the population through the use ofvalid research instrument. Conclusive research can be sub-divided into two majorcategories which are descriptive research and causal research. For this research,the researcher used descriptive research method because this method helps toprovide answers to the question of what, why, who, where and how associated with aparticular research. For the purpose of this research, descriptive research wasused to obtain the relationship product attributes and buyer intentions in onlinepurchasing.

METHODOLOGICAL CHOICES The Methodological choice in this research is related to whether the

researcher follows a single quantitative or qualitative or mixed method which useboth quantitative and qualitative. Each of these options is likely to call for adifferent set of an element to achieve coherence in this research design (Saunderset al., 2012). Only one methodology will be used in this research which isquantitative methodology. Quantitative methodology research involves the usequantitative data and analysis of data and material.

DATA COLLECTED METHODThe researcher using primary data and secondary data in this research. The

primary data for this research are collected by using questionnaires. One set ofquestions was designed and distributed to 100 respondents and focus from StudentIPTA which is UTEM, UKM, UUM, UNISZA and other university in Malaysia. Thequestionnaires are based on this research topic. A questionnaire has to constructcarefully so that the information collected are valid. Secondary data sources suchas books and journals are the subsequent publication of primary data sources.These publications are aimed at a wider audience. They are easier to locate thanprimary data sources as they are better covered by the tertiary data sources.

HYPOTHESIS TESTINGHypothesis 0: Benefits of the product will not positively related to the

buyer intentions in online purchasing. Hypothesis 1: Benefits of product will bepositively related to the buyer intentions in online purchasing.

Hypothesis 0: Functions of the product will not positively related to thebuyer intentions in online purchasing.Hypothesis 1: Functions of products will bepositively related to the buyer intentions in online purchasing.

Hypothesis 0: Features of the product will not relate positively to thebuyer intentions in online purchasing. Hypothesis 1: Features of the product willbe related positively to the buyer intentions in online purchasing.

RESULTTable-1. Gender.

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Table 1 and show that there are 100 respondents participated in thisresearch. The results of gender analysis show that the percentages of respondentsare 85% females and the rest 15% are male. It consists of 85 females and 15 males.

Table-2. Age.

Table 2 refers to the respondents’ age groups. The age of respondents wasdivided into three groups. The table and Figure show, respondents between 22 to 25years old give the highest participation in this research that 74 from 100respondents. Age between 18 to 21 years old are 21% with respondents. While, agegroups between 26 until 29 years old are 5% with 5 respondents.

Table-3. Race.

Table 3 shows the respondent’s race participated in this research. It showsthat 91% of respondents are Malay, 5% from Chinese while Indian and others are 2%.From this research, the highest respondents that participated are Malay which is91 respondents, while Chinese 5 respondents, Indian and Others are 2 respondents.

Table-4. Education Level.

As we can see from the Table 4, it explains that the level of educationamong the respondent from IPTA in Malaysia. Almost all the respondents fromBachelor Degree which is 99% of respondents and only 1% from Master Degree.

Table-5. University.

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Table 5 explains that, all the respondents are from university from IPTA inMalaysia and the researcher focus on the region which are central region(Selangor), Southern region (Melaka), Northen region (Kedah), East Coast region(Terengganu) and others. The respondents are from University Teknikal MalaysiaMelaka (UTeM) 64%, University Kebangsaan Malaysia (UKM) 1%, University UtaraMalaysia (UUM) 12%, University Sultan Zainal Abidin (UNISZA) 18% and OthersUniversity 5% from IPTA in Malaysia.

Table-6. Respondents experience in Online Purchase.

Table 6 shows the number of the respondents’ that have experience in buyingonline product. Based on the data collected, most of respondents’ have experiencebuying product from online which are 94% (94 respondents) say Yes and others 6% (6respondents) say No from 100 respondents be collected.

Table-6. Type of Product.

Table 7 shows the respondent’s type of product that they buy using onlinefrom internet. Mostly from the data that has collected, the respondents buying theapparels product and cosmetics & beauty product which are 39% and 35%. While theother product 14%, Digital product 8% and 4% buying books & novel.

Table-8. Product Attribute.

As we can see from the Table 8, it explains that the first attribute thatgive attention to respondent to buy the product from an online purchase. 44% ofrespondent choose function of the product, 34% are benefits of the product, whileonly 22% choose features of the products.

Table-9. Reliability Statistics

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Table 9 shows that the Cronbach’s Alpha for the independent and dependentvariables. The purpose of this test is to check whether the data obtained isreliable or not. From this research, it shows the result of the reliabilitystatistics test for this research has been collected. As referred to the table, itshows that the value of Cronbach’s Alpha result of this research for all variablesis 0.934. The values are acceptable because it’s more than 0.5 which is a goodresult. According to (Dusick, 2012) the Cronbach’s Alpha value that more than 0.7is considered as reliable result.

Table-10. Correlation.

**Correlation is significant at the 0.01 level (2-tailed).

X1 = Benefits of the ProductX2 = Functions of the ProductX3 = Features of the ProductY1 = Buyer Intention

The table 10 shows the result analysis of the correlation between all thedependent variables and independent variables. The dependent variable in thisresearch is buyer intention in online purchasing among IPTA Malaysia, while threeindependent variables involved that contributed to the dependent variables whichare beneficial, function and feature of the product. From table 12 it shows thatall three of independent variables have a significant relationship dependentvariable.

According to the Table 10, there is a significant relationship betweenbenefits of a product and buyer intention in online purchasing among student IPTAin Malaysia. It is because the p value is equal to 0.000 and less than alpha value0.05. The value of the correlation coefficient between benefits of a product andbuyer intentions in online purchasing among student IPTA in Malaysia is 0.813. Itis in coefficient range between ±0.81 and ±1.00. It referred that a very strongrelationship between benefit of the product and buyer intentions in onlinepurchasing among student IPTA in Malaysia.

Next, there is a significant relationship between the function of productand buyer intentions in online purchasing among student IPTA in Malaysia. Refer tothe table 10; the p value is equal to 0.000 and less than alpha value 0.05. Thevalue of the correlation coefficient between the function of a product and buyerintentions in online purchasing among student IPTA in Malaysia is 0.816. It is incoefficient range between ±0.81 and ±1.00. It refers that very strong relationshipbetween benefit of the product and buyer intentions in online purchasing amongstudent IPTA in Malaysia.

Lastly, there is a significant relationship between feature of the productand buyer intentions in online purchasing among student IPTA in Malaysia. As we

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can see in the Table 10, the p value is equal to 0.000 and less than alpha value0.05. The value of the correlation coefficient between the function of a productand buyer intentions in online purchasing among student IPTA in Malaysia is 0.711.It is in coefficient range between ±0.61 and ±0.80. It referred that a strongrelationship between benefit of the product and buyer intentions in onlinepurchasing among student IPTA in Malaysia.

Table-11. Model Summary.

a. Predictors: (Constant), X3, X1, X2

Table 11 shows the model summary of Multiple Regression Analysis. The Rvalue for this model summary is 0.849. It means that the respondents are concernedabout product attributes towards buyer intentions in online purchasing. Thepositive value of R represents a moderate relationship. The R² value of 0.771means 71.1% of the independent variables studied in, this contributes to the buyerintentions in online purchasing among student IPTA in Malaysia. It means thatanother 29.1% are caused by other factors that are not study in this research.

Table-12. ANOVAa

a. Dependent Variable: Y1b. Predictors: (Constant), X3, X1, X2

Table 12 above shows the p value is 0.000 and less than the alpha value 0.05.The hypothesis for all independent variables are significantly explained itsupported by the data will be accepted.

Table-13. Coefficientsa

a. Dependent Variable: Y1

X1 = Benefits of the ProductX2 = Functions of the ProductX3 = Features of the ProductY1 = Buyer Intention

Based on Table 13, coefficients show that benefits, functions and featureare significant to contribute the dependent variable (buyer intentions in onlinepurchasing among student IPTA in Malaysia). This is because the p value is lessthan alpha value 0.05. The relationship can be denoted as the following equationfrom the analysis from the table above:

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Buyer intentions = 0.119 + 0.369 (Benefits of Product) + 350 (Functions ofProduct) + 0.199 (Features of Product)

As refer to Table 13 Benefits of Product was found to contribute significantpositive influence on buyer intentions in online purchasing (t = 3.113, p = 0.002,β = 0.364). When others variable is held constant, every one unit increase inbenefit of the product will lead to increase in buyer intention in onlinepurchasing by 0.364 units. Next, based on Table 13 Functions of Product was foundto contribute significant positive influence on buyer intentions in onlinepurchasing (t = 2.964, p = 0.004, β = 0.356). When others variable is heldconstant, every one unit increase in benefit of the product will lead to increasein buyer intention in online purchasing by 0.356 units. Lastly, as referred toTable 13 Features Of Product was found to contribute significant positiveinfluence on buyer intentions in online purchasing (t = 2.303, p = 0.023, β =0.188). When others variable is held constant, every one unit increase in benefitof the product will lead to increase in buyer intention in online purchasing by0.188 units. As a conclusion, all the independent variable has positiverelationship to buyer intentions in online purchasing among student IPTA inMalaysia.

DISCUSSIONThis paper aims to shed light on the product attribute towards intentions in

online purchasing .Based on Tables , most of the out of 100 respondents, 85%respondents are female, while the balance 15% respondents are male. Mostrespondents for this research are aged around 22 to 25 years and the majority ofthe respondent’s race are Malay and Bachelor Degree Holder. The majority of therespondents are from University IPTA in peninsular Malaysia which are fromUniversity Teknikal Malaysia Melaka (UTeM), University Kebangsaan Malaysia (UKM),University Utara Malaysia (UUM) 12%, University Sultan Zainal Abidin (UNISZA) andOthers University from IPTA in Malaysia. From this research, majority have anexperience purchase product by online and the type of product is apparels productand cosmetics and beauty product.

From the reliability test, the independent variables which are benefits ofproduct function of product and features of the product and also dependentvariable is buyer intention in online purchasing are reliable. It is because thevalue of Cronbach’s Alpha is more than 0.7 which is 0.934. It means that all thevariables are reliable to be used in this research.

For Pearson Correlation Coefficients Test, all the dependent variableindependent variables are used. The independent variables are significantlyrelated to the dependent variable, which is Buyer Intentions in online purchasingamong students IPTA in Malaysia. All show the positive relationships, but verystrong and strong relationship between the independent variables and a dependentvariable.

Based on the Regression Analysis has been done, the R values for thisresearch is 0.849. R² value is 0.771, it indicates that 71.1% of the variables iscontributed to the Buyer Intentions in online purchasing. The two independentvariable shows the very strong relationship toward Buyer Intentions in onlinepurchasing. However, one of independent variable which is Features of product showthe strong relationship towards buyer intentions in online purchasing. Maybe it isbecause the respondent more attract to the benefits and functions of product inonline purchasing and less intention to Features of product. In addition, therespondents especially from student IPTA less focus on Features of product andmore interested to the Benefits and Functions of product.

Table-14. Summary of Major Findings.

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Table 14 shows the Summary of Major Findings from the Hypotheses statement.It will be accepted if the significant value is less than 0.05.

IMPLICATION OF THE RESEARCHAfter the research has been done, this research helps online business in

order to understand what online customer and focus on student IPTA give buyerintention about product attribute. Mostly online purchases from student,especially average teenager behaviour nowadays more attract to buy the productfrom online because of the attraction product that cannot find from the shop in ashopping mall. Besides this research also provide a better view about attribute ofa product that some of the online seller forgot to focus on. This is because mostof online focus only marketing, but not the product. As this research has beenconducted, Benefits, Functions and Features of product give the positive result inorder give intention to the customer to buy the product in online purchasing amongstudent IPTA in Malaysia.

LIMITATION OF THE RESEARCHDuring the research was conducted, there are some avoidable limitation to

complete this research. The limitation in this research is limited to, studentIPTA from University Teknikal Malaysia Melaka (UTeM), University KebangsaanMalaysia (UKM), University Utara Malaysia (UUM) 12%, University Sultan ZainalAbidin (UNISZA) and Others University from IPTA in Malaysia. Other than that,there was limited time to collect the data about product attribute towards buyerintends in online purchasing among student IPTA in Malaysia, to provide a betterdata collection it takes a long time. Lastly, the limitation is only focus on thequestionnaires survey only. It might be some of respondent do not understand thequestions asked and they just randomly answered the questions. The respondentsmight also have their own opinion about this topic.

RECOMMENDATION FOR THE FUTURE RESEARCHAs for the recommendation for this research is the questionnaires should be

distributed to other age from children to older adult. This is because the datafrom different age will be different and help the online seller about what theattributes of a product they might focus and give their intention to buy theproduct. Besides, the research should include about the behaviour of customers tobuy the product in online purchasing. This is because behaviour, customer is veryimportant to know what product attribute that they prefer to give their intentionto buy the product. Furthermore, if the researcher is interested in doing surveymethod in the future, the questions in the questionnaires should be simple and canunderstand by the respondent, so the respondents will answer based ontheir understanding and avoid a lot of questions because the respondents might notread the question and just answer randomly. Lastly, the better result of researchis not enough only do the questionnaire survey because some of questionnaires arenot given the real result and it's different when collect the data by using the

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interview. So, for suggestion for next research is better done two or more typesof collecting data to get a better result.

CONCLUSIONS This research is about product attributed towards buyer intends in online

purchasing among student IPTA in Malaysia. Overall, it can be concluded thatproduct attribute given the impact towards buyerintends in online purchasing amongstudent IPTA in Malaysia. Online purchasing is the process of buying the productthrough the Internet. Nowadays, online purchasing is expended in Malaysia and fromthis research show 94% of respondents has experience in online purchase. Variousapproaches have been used in finding answers of objectives that stated in thisresearch which, distributes questionnaires, as well as some of the methods used toanalyse the data obtained, such as, validity and reliability analysis,correlation, multiple regression analysis and simple regression analysis. All datawere obtained from a variety of backgrounds of respondents which are from studentsIPTA in Malaysia as decision maker. The data has been collected and analysed byusing SPSS 20.0. Finally, the finding sees that there is a significantrelationship between the Buyer Intention (dependent variable) and the Benefits ofproduct, Functions of product, and Features of product (independent variables).All the independent variables are significant relationship between the BuyerIntention (dependent variable) and the Benefits of product, Functions of product,and Features of product (independent variables).

ACKNOWLEDGEMENTThis work is supported by Faculty of Technology Management and

Technopreneurship, Universiti Teknikal Malaysia Melaka.

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