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TABLE OF CONTENT INTRODUCTION 3-4 RESEARCH METHODOLOGY 5

Conceptual Framework Data Collection Analysis

DISCUSSION AND FINDINGS 6-12 Demographic SURVEY

Perceived Usefulness Perceived Ease of Use Attitude Behavioural Intention Perceived Risk

ANALYSIS

Perceived Usefulness and Attitude towards Using Online Grocery Shopping Perceived Ease of Use and Attitude towards Using Online Grocery Shopping Perceived Ease of Use and Perceived Usefulness. Perceived Usefulness and Behavioural Intention Attitude and Behavioural Intention Perceived Risk and Attitude towards Using Online Grocery Shopping.

CONCLUSION 13

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INTRODUCTION

Internet and Information Technology have revolutionized the way human conducts business activities. It has paved path for online shopping and E-commerce which enabled business transactions to be carried out 24 hours a day, seven days a week and without the limitation of geographical boundaries.

Online grocery shopping is a new innovation of buying grocery products via internet

and the online retailer delivers the grocery to the shoppers place. Online grocery shopping may be welcomed by customers for varied reasons: better price, wider selection, convenience and time savings.

The value proposition of e-grocers is to provide one-stop solution for busy

consumers today such as internet purchase, wide selection, product information, better prices, convenience and time saving.

Malaysia is experiencing the initial stage of the revolution. In line with the e-commerce, online grocery shopping is new in Malaysia and least studies were documented locally in this subject. Online grocery shopping is a new frontier in Malaysia. Thus far, only a very limited study were undertaken to explore consumer attitude and behaviour in relation to online grocery shopping.

This research investigates the attitude of Malaysian consumers towards online grocery shopping. The development of online grocery shopping still remained in the initial stage in Malaysia, therefore least was known about the Malaysian consumer’s attitude towards online grocery shopping and what are the factors influencing the local consumers’ attitude and behavioral intention. As online consumers’ play dual role as a consumer and user of information technology while purchasing groceries online, thus Technology acceptance model (TAM) have been employed to provide theoretical foundation for this study. Technology acceptance model (TAM) is one of the widely used models to conduct research on issues related to information technologies.

In this research, a case study method was used. The survey was carried out at a

hybrid grocery supermarket styled Presto located in Ara Damasara, Petaling Jaya and a sample comprising of 203 consumers of this supermarket were collected via self-administered questionnaires. The result of the study indicates perceived ease of use (PEOU) & perceived usefulness (PU) positively influence consumers’ formation of attitude, whereas perceived risk (PR) has negative impact on the consumer’s attitude. The researcher believes these findings will provide a valuable insight in understanding the attitude of the Malaysian consumers as well as providing useful implications to theory and practice. Online Grocery Shopping in Malaysia

According to KPMG, (2006) the grocery retail market in Malaysia is reported to be worth around US$ 9.8 Billion in 2004 and as compared to US$ 7.6 Billion in year 1999. “Currently Internet is becoming popular in Malaysia, as it is a virtual place where people share their ideas, build communities, shape the future democratically, and promotes a new way of doing business” (Paynter, J. & Lim, J., 2001). The growth in Internet usage has influenced the online shopping trend in Malaysia in the past two decades.

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The study reveals consumers’ form favourable attitude towards online grocery shopping

if they find online purchasing sites are easy to use. It explains that the technological and tools of retailers websites influences the consumers attitude towards online grocery shopping.

Ease of use of online retailers’ website attracts significant attention from the consumers. Therefore the online grocery retailer is recommended to improve functions and user friendliness of their website such as good website navigation, simple and easy to use website, adequate product information, good interactive features between customer and online retailer. Additionally, online retailers shall also develop good support features such as effective user guidelines to help inexperienced consumers with online shopping.

Perceived Ease of Use and Perceived Usefulness.

A correlation analysis was conducted to evaluate the relationship of Perceived Ease of Use with Perceived Usefulness. To test the effect of Perceived Ease of Use on Perceived usefulness, a regression analysis was also included and significant positive correlation existed between the two. This indicates the features on online shopping sites influences on consumers’ perceived usefulness. Hence the study indicates good evidence to prove the notion that the degree of which consumer perceived ease of use evidently impacts their perceived of usefulness of online grocery shopping. Therefore the online grocery retailers are encouraged to focus on enhancing user friendliness and usability of their websites to positively affect the formation of favourable attitude by consumers towards online grocery shopping.

Perceived Ease of Use and Attitude

good website navigation

simple and easy to use website

adequate product information

effective user guidelines

Perceived Ease of Use and Perceived Usefulness

enhancing user friendliness

usability of websites