Factors influencing consumer decision making on online shopping in Tanzania: a case of Arusha, Dar es Salaam and Dodoma, Tanzania.
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Abstract
The purpose of this study was to analyze factors that influence consumer decision making on online shopping. A survey was conducted that involved two hundred active online shoppers in Arusha, Dar es Salaam and Dodoma and the aspects explored included security assurances, purchase and delivery process and online payment methods. The findings confirmed the hypotheses that guided the study that is security assurance, purchase and delivery process as well as online payment methods are statistically significant in influencing consumer decision making on online shopping. The main conclusions drawn from this research indicated that consumers still do not understand the security features and privacy policies of the online stores they shop from as few take time to read and understand them, consequently exposing themselves to online risk. In addition, businesses were not only found to be inconsistent in the products they deliver in comparison to the ones displayed on their online sites but also in the delivery time which often took longer than previously stated before the purchase. The research has argued that for conventional theories like Theory of Reasoned Action (TRA) and models such as the Generic Model of Consumer Problem Solving to be relevant in the current environment they need to incorporate filtering elements that consumers use to guide them in their online purchases. Having said so, the Tanzanian government should work with businesses to improve the Electronic and Postal Communication Regulation of 2018 to offer more protection to online shoppers and secure online platforms in general.