Assessment of customers’ knowledge and attitudes towards e-commerce in Buffalo City Metropolitan Municipality

Abstract

In numerous developed markets, E-commerce is generally utilised and considered an effective method of reaching global players, gaining market share and building extended relationships between customers and businesses and between businesses. Yet, in South Africa- a developing country, the E-commerce market remains fairly underutilized and is primarily focused on the non-food market and targeting high-end customers. Current estimates are that 37% (13 - 15million) of South Africans have online access, and while this is considered to offer great potential for E-commerce to flourish, it has not been the case in South Africa. The aim of this study was to assess customer knowledge and attitude towards E-commerce through a framework in the context of Buffalo City Metropolitan Municipality (BCMM). To answer the research question and accomplish the aim, the study explored and described how customers’ knowledge and attitudes towards E-commerce manifest themselves. Theories surmised in making assumptions and explaining the behaviour of customers towards E-commerce to potentially enhance an understanding on underlying factors that influence the knowledge and attitudes of customers towards E-commerce were used as a lens to develop a priori research conceptual framework that was employed to guide data collection and analysis. The underpinning theories are Theory of Reasoned Action (TRA), The Technology Acceptance Model (TAM) and the Diffusion of Innovation Theory. The conceptual research framework for this study had three fundamental blocks: customer characteristics, knowledge and persuasion. Putting together these three main aspects, the thesis was able to figure out the perceived usefulness and attitude of people to E-commerce in Buffalo City Metropolitan Municipality, and to provide recommendations on how to improve E commerce in BCMM. This qualitative study adopted the relativist and constructionist perspective as an ontological assumption. From the onset, the study claimed that online platforms for E-commerce exist in reality and that most people in South Africa have access to internet and that many own smartphones, but their knowledge and attitude towards E-commerce is not well understood. Thus this study explored the participant’s iv knowledge and attitude towards E-commerce as a reality that is socially constructed in their contextual background, and this was the epistemological stance of the study. An interpretive approach was followed in collecting and analysing the data. The data were obtained through face-to-face interviews with 12 middle class adult participants whom were purposively selected from different areas within BCMM. In terms of gender, participants comprised of eight females and four males. Observations were also conducted to obtain the data that could not be obtained through the interviews. Data were analysed inductively using thematic analysis approach. The research revealed that BCMM customers are knowledgeable about and have a positive attitude towards E-commerce, yet most do not engage in online shopping. There was also suggesting evidence that low levels of acceptance among customers in BCMM is caused by nervousness to engage in online shopping, and the levels of discomfort in relation to usage, varied between males and females. Females were found to be shopping online more than males. Findings suggest that some customers have trust issues with E-commerce and perceive online shopping as risky, with a number of them expressing security fears related to potential misuse of their personal information on websites of E-Commerce shops. It also transpired that a majority of them do not have an understanding of what constitutes a secured website. Despite the low level of utility of the E-commerce, it is concluded that customers in BCMM are knowledgeable and have positive attitude towards E-Commerce. However, to increase usage of online E-commerce in BCMM, education on how E-commerce works needs to be prioritised. Furthermore, it is recommended that E-commerce shops need to devise genuine strategies of allaying customers’ fears about E-commerce in order to improve their trust. This would likely increase the utility of E-commerce by customers in BCMM.