E-commerce and Online Shopping: A Comparative Analysis

The provided content comprises multiple research articles and resources on e-commerce, customer attitude towards online stores, and factors affecting online shopping behavior. The articles explore various aspects of online shopping, including consumer attitudes, purchase intentions, and the impact of different retailer models on consumer purchasing habits. Additionally, the resources cover topics such as research methods, including qualitative and quantitative approaches, inductive reasoning, positivism, and deductive thinking. Overall, the content suggests that online shopping is becoming increasingly popular, with consumers valuing its convenience, accuracy, and competitive pricing.

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Impact of online shopping on the
traditional retail shops in Hong
Kong- Research Report

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Abstract:
This research report elicits the findings from a study that was executed on the analysis of the
influence of online shopping on the traditional retail shops in Hong Kong. The study has been
conducted on an exploratory basis with the collection and analysis of qualitative and quantitative
data. Initially, a comprehensive literature review was conducted in order to gather substantial
knowledge on the concepts of online retailing, its various forms and the several advantages and
disadvantages that it offers to the retailers and to the customers as well. Then, a primary data
collection process was undertaken where an interview was conducted with some of the
relationship managers of HKTV Mall which is the largest online retail shopping mall in Hong
Kong. They were offered with online open-ended questionnaires where they offered their
feedback. After that surveys were conducted on some of the customers of the HKTV Mall that
are engaged in online shopping from the mall and also from other online or e-commerce business
establishments. The customers were offered with online survey questionnaires consisting of
closed-ended questions on their online shopping habits. Then, the phase of data analysis was
undertaken where the feedback from the interviews and surveys were analyzed to arrive at the
key findings of the study. The major findings from the study have revealed that online shopping
has been gaining immense popularity in Hong Kong like in other parts of the world. The modern
generation of consumers are preferring the online mode of shopping due to various factors such
as availability of a wide portfolio of products online, easy option to choose a product and make
payments online. Some of the other reasons due to which the customers are getting inclined
towards online shopping were found to be cost and time savings, high quality of customer
services, ability to conduct shopping 24x7 and the ability to offer instant feedback to the
companies about the purchase made.

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Table of Contents
Abstract:...........................................................................................................................................2
Chapter 1: Introduction ...................................................................................................................5
Research Background:.................................................................................................................5
Research Scope:...........................................................................................................................5
Research Significance:.................................................................................................................6
Research Rationale:.....................................................................................................................6
Research Aims:............................................................................................................................7
Research Objectives:...................................................................................................................7
Research Questions:.....................................................................................................................7
Chapter 2: Literature Review...........................................................................................................8
Chapter 3: Methodology................................................................................................................16
Research Philosophy:.................................................................................................................16
Research Approach:...................................................................................................................17
Data Collection Methods:..........................................................................................................17
Qualitative:............................................................................................................................17
Quantitative:..........................................................................................................................18
Data Analysis Methods:.............................................................................................................19
Qualitative:............................................................................................................................19
Quantitative:..........................................................................................................................20
Chapter 4: Results..........................................................................................................................20
Interview findings......................................................................................................................20
Survey Findings.........................................................................................................................22
Chapter 5: Analysis & Discussion.................................................................................................31
Chapter 6: Conclusions & Recommendations...............................................................................34

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References:....................................................................................................................................36
Appendix:......................................................................................................................................41

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Chapter 1: Introduction
Research Background:
Online selling or E-Commerce selling has gained popularity worldwide including Hong Kong.
With the progress of globalization around the world there has been immense technological
advancement in the various methods and processes in which the modern business activities are
being carried out by the several business organizations (Statista, 2019). One of the massive
discoveries for human beings has been the Information and Communication Technology and it
several applications in business. The growth and development of the nations like Hong Kong has
altered the tastes and preferences of the consumers to a great extent (Chanchal, 2019). Formerly,
the customers used to visit the various shops for choosing their desired products or services.
Decades ago the bricks-and-mortar form of shopping was more popular among the consumers in
Hong Kong as was the case with shoppers in the developed and developing nations (Cristina,
Elena, & Cristina, 2017). This research study has examined the impact of online shopping
behavior of the consumers on the future of the retail stores operating in Hong Kong. It is evident
that the consumers in Hong Kong, especially those belonging to the young generation are avid
users of internet technology and they prefer to use their smart devices like smartphones to take
part in online shopping that has impacted the growth and development of the retail shops in the
country (The Hindu Business Line, 2019).
Research Scope:
The scope of the research encompasses a study of the changing consumer behavior of the people
of Hong Kong who has shifted from physically visiting the various retail shops and making a
purchase of their favorite products (Bhattacharjee, Saha, & Begum, 2012). Majority of the
customers belonging to the young and middle-aged population are preferring to buy there desert
products and services by using their smartphones and other electronic gadgets that use the
internet and digital communication platforms like various mobile applications which have made
it easy for consumers to choose their products and make purchases online (Enache, 2018). The
scope of the research study has been limited to studying the impact of online shopping on one of
the online retail organizations in Hong Kong known as the HKTV Mall from the perspectives of
few of the relationship managers of the mall as well as collecting feedback from some of the

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customers that are regular consumers of several products and services from the online retailer
(The Times of India, 2018).
Research Significance:
The significance of this research study is that it has helped to determine the impact that the
modern methods of online shopping or E-Commerce shopping is having on the traditional retail
shops in Hong Kong. It is undeniable that online shopping behavior of the modern consumers
has a negative influence on the traditional and conventional retail stores in Hong Kong which are
operating for several years. The study has shed light on the extent to which the traditional shops
has been affected due to the increasing popularity of e-commerce platform of shopping that the
majority of the modern customers are indulging in (Pando, 2018). It is expected that the findings
of this research study will help to reveal a realistic picture of how the conventional retailers in
Hong Kong has been actually impacted by this changing consumer behavior since decades. It is
important to determine the future growth and sustainability prospects of traditional retailing as
well as online retailing in Hong Kong and this research has made a significant contribution in
this direction (Svatošová, 2015).
Research Rationale:
The rationale for the research is that the subject that has been chose for this study is a highly
relevant topic in the domain of business research. It can be said that there has been an
unprecedented change in the technology that is being observed by the modern business
establishments around the world. The developed and the developing nations are coming up with
commendable improvements and innovations in the internet and digital communication
technologies that have been enriching not only our personal lives but our professional lives as
well. As it is evident that technological progress has a positive impetus in business but it cannot
be denied that too much dependence and utilization of technology has been acting as potential
barriers and challenges for many of the traditional business establishments such as the bricks-
and-mortar retail shops in Hong Kong. The popularity of online shopping has been a cause of
major threat to their existence that needs to be studied in order to understand their positions and
future growth and sustainability options as the demand for internet technologies in business and
shopping keeps on rising (Li, 2019).

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Research Aims:
The aims of the research study encompass understanding the causes behind the rising popularity
of e-commerce companies and online shopping behavior of the consumers in Hong Kong and
determining the ways in which such consumer behavior are effecting the conventional and
traditional retail stores in the country. The study has aimed to find out the major challenges and
barriers that the traditional retail stores are facing in the country due to the fast increasing
demand of online or e-commerce business establishments that are ready to offer the facilities of
online shopping for the modern tech savvy consumers. Furthermore, the purpose of the study has
been to determine the reactions of some of the online retail business managers as well as online
retail customers in order to evaluate the reasons of popularity of e-commerce among the
consumers and the future of the traditional and online retail stores in the country. The study also
aimed at offering suggestions to the traditional retailers as well as the online retailers as to the
ways in making their businesses grow and sustain within the extremely competitive and dynamic
business environment of retailing in Hong Kong.
Research Objectives:
The research study has aimed to achieve the following objectives:
 To identify the growth of e-commerce shops in the retail industry of Hong Kong
 To assess the current status of the traditional retail stores in Hong Kong
 To analyze the impacts of e-commerce growth on the traditional retail industry in Hong
Kong
 To offer suggestive recommendations to ensure continuity of traditional retail shopping
as well as supporting the growth of e-commerce or online retailing in Hong Kong
Research Questions:
The research has sought answers to the following questions:
 What are the growth trends of e-commerce industry in Hong Kong?
 What is the current status of retail industry in Hong Kong?
 What is the effect of the growth of online shops over the traditional retail shops in Hong
Kong market?

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 How can the sustainability of traditional retailing be ensured along with the growth and
development of online retailing in Hong Kong?
Chapter 2: Literature Review
This section of the study shares the knowledge that has been gathered by undertaking a
comprehensive review of various sources of literature such as online journals, websites and
reports on the subject of the future of traditional retailing, the emergence of online retailing and
the several challenges and opportunities that modern e-commerce retailing offers to the retail
business sector. The learning imbibed from this section has been instrumental in forming the
foundation of the research study in terms of understanding the reasons behind the increasing
demand for online shopping and the several barriers that the traditional retailers have been facing
due to this imminent threat of e-commerce platform of selling products and services.
According to Amaro & Duarte (2015), since decades, the domain of retail shopping has been
dominated by the conventional retail stores which can be considered as bricks-and-mortar format
of selling products to the consumers. The advantage of traditional retail stores is primarily the
benefit that they offer in terms of offering the opportunity of tangibility of the products that the
consumers can see and physically touch before they make up their minds to either purchase the
products or abstain from making any purchase if they are not satisfied with the product. This was
one of the reasons behind the time taken for or e-commerce online platform of shopping to
become popular among the consumers. The conventional consumers preferred to see and
examine the products with their own hands and observe a physical demonstration of the use of
such products before they finally decided about purchasing the product or not. Decades ago
when the e-commerce form of business started to open up globally, the initial reaction of the
customers was not highly encouraging because the majority was not aware of the internet and
digital communication technologies and there was no adequate resources and infrastructure to
support the large-scale acceptance and implementation of e-commerce strategies. The general
awareness of the public about the technology was also extremely low due to which the majority
of the consumers we are not confident on the technology and they considered the traditional form
of retailing to be more effective and authentic way of shopping. However, the inception of the

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era of globalization started to enhance the growth and development in internet and digital
communication technologies along with increasing the awareness of the public about online
business activities. Gradually, internet technology started influencing the lives of the people and
with the efforts of the governments to make this technology accessible to the majority of the
population the e-commerce format of business started to gain enhanced acceptance among the
consumers (Amaro & Duarte, 2015).
In the opinion of Nagar (2017), the popularity of online shopping has been increasing in different
parts of the world like India. The concept of online shopping has already been popular in the
developed nations but nowadays even in the emerging and developing nations the popularity of
online shopping has been increasing. The reason behind this increasing popularity of online
shopping is that there has been a rapid growth and development in digital communication
technologies and information technology that has engulfed the entire global domain of
consumerism. There are various retail companies that are offering their products and services
through the e-commerce model of selling with the help of their official websites. The modern
consumers are inclined to using internet technology for a variety of purposes such as doing
shopping. It has been identified from the study that consumers have preferences for online
shopping websites of various retail business establishments and it directs their attitude and
purchase intentions. The retail business establishments should focus on observing multi category
purchase model for ensuring that there is an increase in the purchase intention of the consumers.
The retail shops in India have been affected to some extent by the increasing popularity of online
retailing which has been a highly desirable and popular method of buying and selling of various
products and services within the country. Therefore, it is evident that online retailing is gaining
popularity in the country and it will offer an array of business opportunities to the Indian retail
sector despite the challenges and threats offered by online retailing to traditional retailing (Nagar,
2017).
According to Cost (2016), today, the volume of trade and commerce that is being undertaken
through electronic commerce has been increasing at a rapid pace with the unprecedented growth
and development of internet technology. Various types of business establishments now have the
opportunity to enhance the sale of their products and services and the opportunity of maintaining
close contact and a direct relationship with the consumers where there are no intermediaries

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between the business and the consumers. With the passage of time more and more number of
consumers are turning to the internet services for the purpose of conducting online shopping. The
advantage of online shopping is that the consumers have the option to directly purchase their
chosen products or services from a virtual shop. It is highly convenient for people to shop for
their favorite products and services from the comfort and convenience of their residence or
workplace. One of the major advantages of online shopping to the consumers is that the
consumers can read the various reviews shared by other consumers about the company and its
products and services. This increases the credibility of online retail business establishments
which is one of the major reasons why a large number of customers today prefer to shop from
online retailers rather than from traditional retailers. Some of the major products that are
purchased online by the Indian consumers consist of branded or unbranded clothes, accessories,
home decorations, technology products, etc. This has been encouraging for the economy and for
the online retailing companies but for the traditional retailers, they are finding it difficult to
attract and retain customers which can be one of the negative sides faced by traditional retailing
in India as in other parts of the world (Cost, 2016).
In the opinion of Mpinganjira (2016), the rapid growth and development of Information and
Communication Technology has significantly transformed the way in which retailing business is
undertaken today. The popularity of online retailing has been growing rapidly around the world
as also in South Africa. Today the consumers are happier to buy products and services by using
the internet services and several mobile applications. The modern world has grown in
technological development to a great extent and this immense growth in technology is reflected
in various methods in which the modern business operations had been undertaken in the retail
segment. There are several reasons that attract the modern customers towards online shopping
such as the security features provided by online stores in serving the customers with their desired
products and services, the navigation aids of the websites of the online stores, the offerings from
the online store and the reliability of the fulfilment of services offered by the online shop. It is
evident from the research study conducted on some online customers in Gauteng in South Africa
that the online consumers have a positive post purchase attitude and if they are satisfied with the
products and services offered by the online shops, then they will most likely consider a
repurchase from the same store. So, there has been a noticeable growth and development in
online shopping in Africa in the past decade but there is still plenty of opportunity for the online

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form of shopping to achieve the desired scale. This will result in a decline in the popularity of the
conventional retail stores but it can be said that there will still be many customers that prefer to
utilize the traditional method of shopping by visiting different stores and purchasing their desired
products and services (Mpinganjira, 2016).
According to Shanthi and Kannaiah (2015), e-commerce is the future of retailing in all the
developed and developing nations in the world. Organized retail in different countries like India,
China and the US still lacks the required reach to the large population. The large retail chains
that operate on the traditional bricks-and-mortar model are not enough to cater to the demands of
the consumers in the small towns as compared to that in the bigger cities. Therefore, one of the
major reasons for the popularity of online retailing is that it has made several products and
services accessible to the people in the smaller cities and the rural areas that the traditional
format of retailing was unable to satisfy. Hence, there has been a rapid growth in the popularity
of e-commerce or online retailing and it is expected that its popularity will grow in the coming
years which will cause a positive as well as a negative impact on the economy of these countries.
The retail business establishments that have espoused the online or e-commerce model of selling
their products will have more opportunities of being profitable and sustainable as compared to
the retailers that do not have the online shopping facilities for the consumers (Dr.R.Shanthi &
Kannaiah, 2015).
In the opinion of Singh, Dash and Kumar (2016), the future era will be that of the internet
shopping malls where the consumers will be able to buy their favorite products and services by
being able to choose their desired products from the internet shopping malls where the
consumers will be able to browse through the websites or through the utilization of mobile apps
to partake in product searching. The consumers have the opportunity to go through all the details
about several products and brands such as the specifications, prices, discounts, delivery options,
payment choices and others and this is one of the major reasons for the rising popularity of
Internet shopping malls such as Flipkart, Amazon, eBay, Myntra and others. So, the TOPSIS
method has been used in the research study for the purpose of ranking various internet shopping
malls and the application of modified TOPSIS has been conducted for checking the sensitivity of
the results of the study. The study has reflected that the competitive advantage of the various
internet shopping malls can be achieved by consideration of social factors like the online

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reputation of the internet shopping malls and the dimension of information and e-services that
are offered by the Internet shopping malls. So, some of the most important reasons for the
increasing demand for online or internet shopping malls are the changes in the consumer
behavior and hence it is possible that the popularity of the traditional retail shops will diminish
over the coming years as a large section of the customers will shift to online shopping from
traditional retail shopping. Therefore, it follows that the conventional retail business
establishments need to develop competitive business strategies so that they can complete with
the online retailers and continue to remain profitable and sustainable (Singh, Dash, & Kumar,
2016).
As per the observation of Meshram (2016), it is undeniable that there has been an increasing
trend in online shopping of the modern consumers over the several fixed shop retailers. A large
section of the population is dependent on the retail segment for or purchasing several products
and services of their needs. The group development of e-stores has proved to be highly attractive
for the retail consumers because they are able to choose their favorite products and services and
get the delivery at their door steps. The online retail stores also offer substantial discounts which
is one of the major reasons why a large number of customers are preferring to buy from online
retailers then from the conventional online shop retailers. The other reason behind the preference
of online retailing over traditional retailing by the majority of modern consumers is the wide
variety of the several products that are being offered by the online retailers. Hence, these are the
major areas where the traditional fixed shop retailers and lagging behind the modern online
retailers. So, it is likely that there will be a decline in the number of footfalls to the traditional
fixed shop retail business establishments due to the substantial increase in the popularity of
online shopping by the modern generation of consumers (Meshram, 2016).
In the opinion of Akorush & Al-Debei (2015), it is an important aspect of investigation to
identify the factors which affect customer attitudes towards various aspects of online shopping.
A research has been conducted with the aim of examining an integrated model highlighting the
factors which affect attitudes of the customers towards online shopping. The investigation has
been conducted in Jordan on some of the online shoppers. The integrated model has been
analyzed intricately whereby, the perceived relative advantage, website reputation, trust, and
website image affecting attributes of the consumers toward online shopping have been analyzed.

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The analysis has been conducted with the help of a self-administered and structured online
survey which has been employed to online shoppers of one of the reputable online retailers of
Jordan. The survey has been conducted in Jordan. In the survey, the total number of sample has
been 273 who have been the online shoppers. These online shoppers have participated in the
online survey. A series of confirmatory and exploratory factor analysis have been used in order
to assess the dimensionality, research constructs, composite reliability and validity. A structural
path modal analysis has also been used to investigate the hypothesis and proposed research
model.
From the findings of the analysis, it has been observed that relative advantage, perceived website
reputation and trust have been the major factors which affect consumers’ attitudes directly and
indirectly toward online shopping. The online shopping attitudes of the consumers have been
observed to be affected by trust and perceived relative advantage. Trust is actually a product or
an important aspect of relative advantage which is a function of perceived reputation of the
website. Together, perceived website reputation and relative advantage can be considered as the
major predictors of perceived image of the website (Stevens, 2016). Perceived website image has
been found to be one of the direct predictors of trust. It has also been observed from the findings
that 26% of the variation in the attitudes of the consumers towards online shopping has been
directly affected by relative advantage, perceived website image and trust. But the researcher has
also highlighted that this research has been more likely a generalized one and it is very important
to understand the impacts of international websites and local websites on the attitudes of the
consumers. Moreover, the study has been conducted in Jordan (Nagra & Gopal, 2011). Hence, it
is not prudent to generalize the findings on the international platform. Quantitative tools of
research have been used to analyze and interpret the responses of the participants of the survey.
It is also important to implement qualitative methods where some of the secondary sources of
information could also be analyzed. But it can be said that the consumers of the modern period
are getting quite responsive to what the online shopping sites because of the time effectiveness
and convenience day get from online shopping (Akorush & Al-Debei, 2015).
In the opinion of Akroush, Ashouri, & Al-Debei (2015), it can be said that perceived quality of
the websites is important aspect which impacts the attitudes of the consumers towards online
shopping as much as perceived benefits and trust impact do. A research has been conducted with

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the aim of analyzing perceived quality along with trust and perceived benefits. In this
investigation electronic word of mouth (eWOM) has also been analyzed along with its impacts
on attitudes of the consumers towards online shopping. With the help of a self-administered and
structured online survey, the research has been conducted (Nagar, 2017). The findings of the
research clearly indicated that perceived quality of the website and electronic word of mouth are
important predictors and factors influencing consumer behavior and attitudes towards different
aspects of online shopping. Electronic word of mouth is a function of the total perceived web
quality. The researcher while conducting the analysis has observed that higher trust levels of the
consumers towards online shopping gets influenced by the levels of perceived quality.
Moreover, it has been observed that perceived with quality has been an important predictor of
trust and it is one of the significant and positive influenza of perceived benefits. It has also been
observed that 28% of the total responses and variation in different aspects of online shopping
attitudes has taken place because of trust and perceived benefits. The marketers and the brand
owners should understand the significance of perceived benefits and trust. The relationship
between these two variables is highly important in identifying the way a consumer would react
on online shopping aspect. Especially, in the emerging markets the role of quality of the website
is very important. It enhances confidence and trust in the consumers. With poor quality of the
website, the online shopping sites could not achieve the desired outcomes (Hwang, Jung, &
Salvendy, 2006). The retainers should always tried to improve the quality of their websites so as
to provide ample amenities and convenience to the online shoppers. It is also one of the
important aspects in attracting potential customers. The retailers in the domain of online
transactions along with the managers and executive can also benefit from different e marketing
strategies if they continuously improve the performance of the websites. It is also an important
aspect in acquiring new customers. This strategy of continuous improvement of the web quality
also helps the brands to achieve their performance objectives in the long run (Akroush, Ashouri,
& Al-Debei, 2015).
According to Baubonienė & Gulevičiūtė (2015), better price, simplicity, and convenience are the
major three factors which influence consumers directly and indirectly in getting responsive
toward online shopping. An investigation has been conducted to analyze the factors which drive
online shopping. The research aimed at understanding the factors impacting online shopping of

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the consumers. Several factors which encourage consumers in getting more responsive to online
shopping have been explored intricately. The main areas of the analysis include fast delivery,
security, comparable prices, wider choice, cheaper prices, and convenience. The research project
has revealed several factors which discourage the consumers in getting responsive to online
shopping (Deepak, 2017). It has also highlighted the benefits which the online shoppers get from
their online purchases. The research mainly focused on the ways online shopping can get
affected by certain demographic factors such as gender, age, and occupation. The research has
been conducted with the help of a web-based questionnaire survey where 183 consumers
purchasing through online shopping sites have participated. The findings of the survey clearly
indicated that the major influencing factors which encourage the consumers in getting more
inclined towards online shopping are better price, simplicity, and convenience. The consumers
mainly get inclined to online shopping because of the factors like convenience, better price, and
simplicity they get from online retailers. The survey has also highlighted that consumers
belonging to the age group of 20 to 25 are frequent buyers on the online platform. It has also
highlighted that the time-effectiveness and simplicity they get from online shopping sites
motivate them to purchase more from online websites. Moreover, the respondents have also
highlighted that they get the chance and opportunity to compare prices from the information they
get on online shopping websites. The findings of the comparison influence them to purchase
their preferred products at affordable and lower prices (D.Clemes, Gan, & Zhang, 2014). The e-
business developers and e-marketer would be able to understand the fact that the consumers can
be attracted towards online shopping by providing them with valuable information, facilities, fast
delivery, compatible prices, and better prices. These features are major drivers of consumers,
attitudes, and perceptions towards online shopping. These factors also help the consumers to get
attracted towards a particular website. The marketers should also gather knowledge on the
lifestyles and changing patterns of tastes and preferences of the consumers while developing
their online shopping sites (Baubonienė & Gulevičiūtė, 2015).
In the opinion of Zhou, Dai, & Zhang (2007), online shopping has become one of the most
common aspect in retaining existing customers by the new comers and existing retailers. The e-
commerce and e marketing strategies have been proved to be highly beneficial for the brand
owners and marketers. The role of new technology in this respect is quite significant. It is very
important for every business organization and retailer to understand the potential benefits of

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online shopping and its impacts on potential consumers and their attitudes. The factors such as
income level of the customers, age, gender, education, price, quality, and availability of the
products and services on the online shopping platform are supposed to be analyzed intricately so
as to understand the impact of online shopping on consumers behavior and attitudes. There can
be several factors such as the convenience in shopping, fast delivery, quality of the products and
services, comparable prices, and the modern facilities which are the highly important in
motivating the consumers to shift towards online shopping more the traditional shopping system.
It has been observed that the customers of the modern time are more inclined towards the
modern technological facilities and amenities they get from the use of the internet. Smartphones
and the mobile applications have increased the inclination toward the online shopping. The
consumers get ample convenience and promotional offers from the online shopping sites which
attract them to online shopping to a great extent (Zhou, Dai, & Zhang, 2007 ).
Chapter 3: Methodology
Research Philosophy:
The main aim of the research is to analyze the impacts of online shopping on the traditional retail
shops in Hong Kong. It is quite important for the researcher to select the best-suited means of
research so as to understand the various factors which influence the consumers in getting
inclined either to online shopping or traditional shopping. This study is also very resourceful for
the e-marketers and e-retailers as well as to the traditional retailers. The research has been
conducted with a positivism research philosophy (Research Methodology, 2018). The researcher
has conducted the analysis on the basis of factual knowledge which has been gained through
several primary and secondary data and their interpretation. The research has mainly focused on
quantifiable observations which have been obtained from the analysis of primary data. The
secondary data have also added value and resource to the findings of the analysis. The researcher
has been observed to have utilized inductive approach (Research Methodology, 2018). The
viewpoint of the researcher on the subject matter of the research has concentrated mainly on
factual knowledge from the literature review and secondary data analysis sections. The
researcher has obtained understanding and knowledge on the subject matter and key areas of the
research from these two sections. On the other hand, from the survey data the researcher has
obtained primary data in the form of responses of the respondents of the survey. A mixed method

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of research has been used where both qualitative and quantitative methods of research have been
implemented (AHRQ, 2013). The secondary data and the literature review has been analyzed
qualitatively. On the other hand, the responses of the survey respondents have been analyzed
quantitatively (AllPsych, 2018). The researcher has used positivism philosophy of research so as
to understand the impacts of online shopping on traditional retail shops in the domain of Hong
Kong. The literature review and secondary data sections have contributed to the resourcefulness
of the study and the primary data have increased the meaningfulness and objectivity of the study.
The quantitative method of research has been used so that the targeted audiences could
understand the quantifiable findings with more convenience (Arends, 2018).
Research Approach:
The research approach that has been utilized in the study is the inductive approach. It is also
known as inductive reasoning (Blumberg, Cooper, & Shindler, 2014). This research study has
been conducted on the basis of review of literature along with collection and analysis of
qualitative and quantitative data that have been gathered through primary sources (Bryman &
Bell, 2015). Hence, the analysis has been based on observations and collection of new
information from the various research participants. Hence, this research has observed the
responses of the participants and then developed the logical interpretations and explanations
from the data collected from the various primary sources (Explorable, 2018).
Data Collection Methods:
The data collection methods in this study encompassed collection of qualitative and quantitative
data (Igwenagu, 2016). Hence, it can be said that a mixed data collection method has been
followed in this research study (Ku Leuven, 2018).
Primary Data Collection
Qualitative:
Qualitative data consists of information that is generally gathered by administering open-ended
questions to the research participants (LARKS, 2018). For instance, in case of primary research
studies such as interviews the researcher offers open-ended questions to the respondents who are
free to offer their feedback and opinion on the questions asked. In this research, qualitative data

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has been gathered from various respondents upon which the analysis of the data has been
undertaken.
Sample:
The sample size for the interview consisted of 3 relationship managers from HKTV Mall who
were offered open-ended questions on the topic of the study for the purpose of gathering their
responses about the trend of online shopping that is replacing traditional shopping quite
significantly in the country (Yi, Osman, Nizam Salahuddim, Romle, & Abdullahe, 2016). The
researcher has used purposive sampling technique for selecting the relationship managers of the
organization who were approached through professional networking sites like LinkedIn,
Facebook and others. After that, the snowball sampling process was implemented to reach out to
other managers and professionals in the company from the samples that have already been
chosen (Macmillanihe, 2018).
Instrument:
The research instrument that has been utilized in the interview process is the interview
questionnaire. 3 sets of questionnaires have been administered to the finally chosen relationship
managers from the HKTV Mall and such questionnaires were distributed to them through the
online platform like their emails. The questionnaires consisted of open-ended questions in which
all the respondents offered their genuine and honest feedback about the research subject. The
interviewees were given 7 days’ time to respond to all the questions and they obliged with ethics
and diligence (Social Research Methods, 2006).
Quantitative:
The quantitative data collection method consists of processes where the researcher can gather
data in numeric form which will help in the quantitative analysis of the data collected from the
various respondents in a research study. Surveys are extremely popular and widely implemented
strategies of quantitative data collection. Here, the questions offered to the participants
encompass closed-ended questions where all the respondents are required to choose the answers
that are already provided in the questionnaire and they cannot offer their own opinion. This helps
the researcher to appear at the desired outcomes of the study (ORAU, 2018).

19
Sample:
The sampling technique that has been utilized for gathering the survey responses from the
research participants consisted of the random sampling process (Research Methodology, 2018).
The procedure has helped in gathering information on the major industry trends. A sample of 50
customers was selected from the social media pages of HKTV Mall. Then such customers were
approached and the details about the survey were shared with them through their personal
emails. Then the online survey questionnaires were distributed to the 50 customers that
undertake online retail shopping.
Instrument:
The research instrument that has been used in the survey was the survey questionnaire. 50 such
questionnaires were developed and distributed to the customers of the HKTV Mall through the
online platform such as emails of the customers which they have provided on request. The
survey questionnaires consisted of closed-ended questions where the respondents had to choose
their answers from the options provided under each question. This has facilitated in the
quantitative analysis of the data (StatPac Inc, 2017).
Secondary Data Collection
The research has also taken the help of secondary data that have been gathered from several
resources that are available over the internet like reports, articles from authentic company
websites and other industry reports on the trends of online shopping and the influence it has on
traditional retailers (Utrecht University, 2018). The collection of information from secondary
data has proved to be more helpful in the study because past data on the industry trends in the
domain of retail shopping could be effectively studied to arrive at logical conclusions of the
research.
Data Analysis Methods:
Qualitative:
The qualitative data analysis has been conducted using an exploratory approach where the
researcher has gathered the findings from the interviews conducted on the participants. The
responses to the interview questions have been arranged under various themes (Waikato, 2018).

20
Quantitative:
The quantitative analysis of the survey responses has been executed by utilizing the MS Excel
software where all the questions are based on scales such as the 5-point Likert Scale (Marelli,
2018). The respondents have chosen one option per question and the total number of responses
per choice per question have been calculated to arrive at the results (Research Methodology,
2018).
Chapter 4: Results
Interview findings What is significance of online shopping in today’s business environment?
From the responses, it has been clear that online shopping is considered to be quite significant in
the modern business environment. E-Commerce has been defined as the process of selling and
buying of different goods and services on online platform. It has become quite important because
it has provided the retailers with the opportunity of serving their existing customers in a more
effective manner and also to acquire new customers. The concept of online shopping or E-
Commerce has evolved as any other aspect of digital technology which has continued to grow
and develop quite rapidly. Online shopping has become an important aspect because it has
provided ample opportunities to the retail business owners to provide better services to the
existing customers. By providing 24 x 7 shopping experiences, it helps the business
organizations in achieving desired competitive advantage. Unlike traditional method of
shopping, online shopping has widened the scope of selling different products and services to the
consumers at a much cost effective and efficient manner. It has offered the business
organizations to avail of the opportunity of saving cost. It has also provided the customers to
enjoy faster delivery of products and services. It has also impacted professionalism to a great
impact. It has provided the business organizations with the opportunities of managing their
business from any location. The suppliers could be managed in an effective manner. The
customers can be communicated and interacted on a continuous basis on the online platform and
it becomes highly helpful for the organizations to get real-time feedback and information from
the customers. Online services have provided ample opportunities to the business owners to start
a business with even little resource. There are huge opportunities in conducting online business.
Online shopping aspect has increased the convenience of the customers which in turn has

21
impacted trust and loyalty of the customers to a great extent. The business organizations can plan
a content marketing strategy with the help of online platform. Online shopping sites provide
attractive promotional offers to the customers which in turn attract potential customers. The
existing customers can also be retained in an effective manner with the help of online shopping. Why has online shopping become widely popular?
Online shopping has become widely popular because of the benefits which it provides not only
to the merchants and retailers but also to the customers. The customers enjoy different
promotional offers on online shopping sites. Now, they are able to compare the prices of
different products and services from the information they get on online shopping sites. The
retailers and marketers also can get huge base of customers with an appropriate online marketing
strategy. The volume of the sales gets increased on online shopping sites. The revenues and
profitability of the organization also get positively impacted. The social media is one of the most
effective ways to assess behaviors and choices of customers. The business organizations can get
information about the changing patterns of preferences of the customers from the online
shopping sites. The customers also get the advantage of fast delivery of products and services.
They also get the products and services of their choices at reasonable prices. They do not have to
visit the physical stores which help in saving time and money. The convenience of shopping
from anywhere with the help of online shopping sites has also made the online shopping concept
remarkably popular all over the world. The enhanced search changing visibility has also
provided the organizations to attract customers to they are websites. The retailers can increase
the sales volumes, revenues and profitability by enhancing the quality of the shopping
experiences of the customers at a cost-effective manner.
 What impact online shopping has on traditional retail stores?
The managers have responded that online retailing has gained substantial popularity around the
world, as also in Hong Kong. The modern generation of consumers have preference for online
shopping because of several reasons such as the ease of ordering products from the comfort of
home, easy payment options, huge choice of products and other reasons. So, the traditional retail
shops are facing the brunt of online shopping because the major section of the modern
consumers is inclined to e-commerce format of retailing. Though there are elderly customers that
prefer the traditional mode of shopping like visiting the retail stores for purchasing their favorite

22
products, yet the traditional shops are finding it difficult to attract and retain a large section of the
target consumers that are getting increasingly inclined towards the online format of shopping.
Hence, there is no doubt that the rampant growth and development of online retailing has made it
extremely challenging for the traditional bricks-and-mortar shops to be able to remain profitable
like they used to be few years back.
Survey Findings
26%
46%
16%
12%
1. Age
20-30 years
30-40 years
40-50 years
Above 50 years
20-30
years
30-40
years
40-50
years
Above
50 years
1. Age 13 23 8 6
It is evident from the responses above that out of the 50 customers 13 were in the age range of
20-30 years, 23 were in the age range of 30-40 years, 8 were in the age range of 40-50 years, 6
were above 50 years of age.

23
68%
32%
2. Nationality
Hong Kong
Others
Hong Kong Others
2. Nationality 34 16
From the above data it is evident that out of the 50 customers, 34 were nationals of Hong Kong
and 16 belonged to other nationalities.
58%
42%
3. Gender
Male
Female
Male Female
3. Gender 29 21

24
From the above statistics it can be seen that out of the 50 customers, 29 were males and 21 were
females.
$5000-10000 $10000-15000 $15000-20000 Above $20000
14
18
10
8
4. Monthly Income
$5000-
10000
$10000
-15000
$15000-
20000
Above
$20000
4. Monthly Income 14 18 10 8
It can be seen from the above information that out of the 50 respondents, 14 were in the monthly
income range of $5000-10000, 18 were in the monthly income range of $10000-15000, 10 were
in the monthly income range of $15000-20000, and 8 were above $20000 per month income
range.

25
Strongly Agree Agree Neutral Disagree Strongly Disagree
10
19
5
9
7
5. Online shopping is more
convenient than traditional shopping
Strongl
y Agree
Agree Neutral Disagre
e
Strongl
y
Disagre
e
5. Online shopping is more convenient than
traditional shopping
10 19 5 9 7
From the above responses it is evident that out of the 50 customers, 10 strongly agreed that
online shopping is more convenient than traditional shopping, 19 agreed that online shopping is
more convenient than traditional shopping, 5 were neutral, 9 disagreed that online shopping is
more convenient than traditional shopping, and 7 strongly disagreed that online shopping is more
convenient than traditional shopping.

26
1-5 times 5-10 times More than 10 times
9
36
5
6. How frequently do you undertake
online shopping in a week?
1-5 times 5-10
times
More than
10 times
6. How frequently do you undertake online shopping in a
week?
9 36 5
It is observed from the above responses that out of the 50 customers. 9 undertake online
shopping 1-5 times in a week, 36 undertake online shopping 5-10 times in a week, and 5
undertake online shopping more than 5 times in a week.
Saves Time Saves Money Easy to Choose Easy Payment Doorstep Delivery
19
12
6
8
5
7. What is the most significant benefit
of online shopping?

27
Saves
Time
Saves
Money
Easy to
Choose
Easy
Paymen
t
Doorste
p
Deliver
y
7. What is the most significant benefit of
online shopping?
19 12 6 8 5
It can be seen from the above statistics that out of the 50 customers, 19 consider timesaving as
the most significant benefit of online shopping, 12 consider moneysaving as the most significant
benefit of online shopping, 6 consider ease of choice as the most significant benefit of online
shopping, 8 consider ease of payment as the most significant benefit of online shopping, and 5
consider doorstep delivery as the most significant benefit of online shopping.
Strongly Agree Agree Neutral Disagree Strongly Disagree
21
10
3
10
6
8. Do you think that online shopping
is more popular nowadays than
traditional shopping?
Strongl
y Agree
Agree Neutral Disagre
e
Strongl
y
Disagre
e
8. Do you think that online shopping is
more popular nowadays than traditional
shopping?
21 10 3 10 6

28
It is evident from the above responses that out of the 50 customers, 21 strongly agreed that online
shopping is more popular nowadays than traditional shopping, 10 agreed that online shopping is
more popular nowadays than traditional shopping, 3 were neutral, 10 disagreed that online
shopping is more popular nowadays than traditional shopping, and 6 strongly disagreed that
online shopping is more popular nowadays than traditional shopping.
Strongly Agree Agree Neutral Disagree Strongly Disagree
11 12
2
17
8
9. Do you think that online shopping
offers accurate products as ordered
most of the time?
Strongl
y Agree
Agree Neutral Disagre
e
Strongl
y
Disagre
e
9. Do you think that online shopping offers
accurate products as ordered most of the
time?
11 12 2 17 8
From the above information it is evident that out of the 50 customers, 11 strongly agreed that
online shopping offers accurate products as ordered most of the time, 12 agreed that online
shopping offers accurate products as ordered most of the time, 2 were neutral, 17 disagreed that
online shopping offers accurate products as ordered most of the time, and 8 strongly disagreed
that online shopping offers accurate products as ordered most of the time.

29
Strongly Agree Agree Neutral Disagree Strongly Disagree
26
16
3 3 2
10. Are you happy shopping online at
the HKTV Mall?
Strongl
y Agree
Agree Neutral Disagre
e
Strongl
y
Disagre
e
10. Are you happy shopping online at the
HKTV Mall?
26 16 3 3 2
It is evident from the above responses that out of the 50 customers, 26 strongly agreed that they
are happy shopping online at the HKTV Mall, 16 agreed that they are happy shopping online at
the HKTV Mall, 3 were neutral, 3 disagreed that they are happy shopping online at the HKTV
Mall, and 2 strongly disagreed that they are happy shopping online at the HKTV Mall.

30
Strongly Agree Agree Neutral Disagree Strongly Disagree
13
10
4
19
4
11. Will you still buy products from
retail shops in future?
Strongl
y Agree
Agree Neutral Disagre
e
Strongl
y
Disagre
e
11. Will you still buy products from retail
shops in future?
13 10 4 19 4
From the above statistics it is evident that 13 strongly agreed that they will still buy products
from retail shops in future, 10 agreed that they will still buy products from retail shops in future,
4 were neutral, 19 disagreed that they will still buy products from retail shops in future, and 4
strongly disagreed that they will still buy products from retail shops in future.

31
Strongly Agree Agree Neutral Disagree Strongly Disagree
22
13
3
7 5
12. Do you think that presence of
online retail shops have jeopardized
the traditional retail shops?
Strongl
y Agree
Agree Neutral Disagre
e
Strongl
y
Disagre
e
12. Do you think that presence of online
retail shops have jeopardized the traditional
retail shops?
22 13 3 7 5
Chapter 5: Analysis & Discussion
Analysis & Discussion of Interviews
It is evident from the responses of the managers of the HKTV Mall that online shopping is fast
growing and developing in Hong Kong. Today the customers prefer to buy several products and
services using the online format of retailing because online retailing has made it easier for them
to order their favorite products and receive the delivery of such products within the shortest
possible time. One of the major advantages of online shopping is that the customers can choose
their products online and they can place their orders through a click on their computer screens or
by pressing a button on their smartphones. 24 x 7 shopping experience is provided by online
retailing which makes it easier for the customers to conduct shopping at their preferred time
without any concern about the store getting closed. In traditional retailing the retail shops open

32
and close at specific times and hence the shoppers have to engage in shopping during the time
that the retail shops remain open. But in the case of online retailing like the HKTV Mall there is
no such time limit for the consumers to place orders for their preferred products. One of the
major advantages of the online retailing format is that it can be started with comparatively little
resource and the business can be conducted from various locations due to the availability of the
internet services. Furthermore, the online platform of conducting retail business has offered the
opportunity to the customers to provide real-time feedback about the production services to the
various retail business organizations such as the HKTV Mall. Some of the other major
advantages of online shopping are the various promotional offers that are offered to the
customers that help in turning a large proportion of the customers into permanent loyal
customers. Therefore, online shopping plays a major role ineffective customer retention.
It has also been learnt from the interview responses that there are various reasons behind the
immense popularity of online shopping in Hong Kong such as the opportunity to be able to
compare the prices of several products and services that are provided on the various e-commerce
online shopping sites of different retail brands. Prudent online marketing strategies help retail
business establishments like the HKTV Mall in gaining access to a large section of the
prospective consumers. It has been observed by the managers that online shopping has helped
the business to enhance its volume of sales and profitability over the past few years. Some of the
other advantages of online shopping perform to be the effectiveness with which a business can
assess changing consumer behavior. It helps in developing the future product and service
strategies more effectively and prudently by the business establishment. Online shopping also
saves time and money for the customers because they need not visit the various stores that are
located in different locations physically for doing their shopping which saves resources such as
time and money which is a significant value.
Regarding the influence of online shopping on traditional retail stores in Hong Kong the
managers have said that the popularity of online shopping has impacted the business of the
traditional retail stores without any doubt. The modern generation of customers prefer online
shopping due to several reasons such as the convenience with which they can order online
products from the comfort of their home or office and they also have convenient payment
choices apart from a wide portfolio of products and services that are being offered by online

33
retailing business such as the HKTV Mall. Therefore, it cannot be denied that the traditional
retail stores are facing the consequences as the majority of the modern consumers are preferring
to buy several products through the e-commerce format of shopping. However, there are still
some segment of the consumers like the elderly consumers who still prefer the traditional mode
of shopping from retail outlets because they feel more confident when they are able to physically
visit the various retail stores and see and touch the products for themselves. So it is evident that
the popularity of online shopping will increase in the future in Hong Kong but the traditional
retail stores will also coexist but there might be a decline in their profitability.
Analysis & Discussion of Surveys
It is observed from the responses of the customers of the HKTV Mall that the majority of the
customers consider that online shopping is more convenient than traditional shopping. This is
because they feel that online shopping can be done in a much easier way such as from their
homes and through easy payment options which can be made online. It is observed from the
responses of the customers that a large section of them conduct online shopping from the mall
very frequently such as around 5 to 10 times in a week. This clearly shows the popularity of
online retailing and the success and popularity of the HKTV Mall in Hong Kong. Furthermore,
the majority of the customers off the mall have said that the most significant benefit that they
have derived from online shopping encompasses the saving of time and money over and above
several other benefits that are provided by online shopping. It is learnt from the responses of the
majority of the customers that they strongly believe that online shopping has been gaining more
popularity as compared to traditional shopping in Hong Kong and they expect this trend to
continue in the future. However, major section of the customers think that products which day
order through online shopping are not often accurate in terms of their quality, color, size,
material, etc. and this can be considered as one of the major limitations of online shopping which
the customers have pointed out.
The majority of the consumers of the HKTV Mall revealed that they are quite happy and
satisfied in doing online shopping with the organization. This clearly indicates the success of the
business in Hong Kong and it can be assessed that majority of the consumers are happy shopping
from this mall due to the high quality of products and services offered along with highly
professional customer services. Regarding the question of whether the customers will buy

34
products from retail shops in future there was a balanced response received from the customers.
It indicates that the online shopping has gained increasing popularity in Hong Kong yet many of
the customers are still interested to do their shopping from traditional retail shops. This is a
positive outcome for the traditional retail shops in Hong Kong. The majority of the customers
have responded that they are convinced that the presence of online retail shops have been a
negative influence on the traditional retail shops in Hong Kong and they have jeopardized the
future growth profitability and sustainability of the traditional retail stores that can be a major
cause of concern.
Chapter 6: Conclusions & Recommendations
In conclusion, it is evident from the study that online shopping has gained immense popularity in
Hong Kong and the consumers are inclined towards undertaking online shopping rather than
traditional retail shopping. This is because of the several advantages that online shopping has
over traditional shopping such as the convenience of buying products from the comfort of home
along with other factors such as the availability of a wide range of products, easy payment
options, saving of time and money, fast delivery of products at doorstep, highly professional
customer services and others. The study has also shown that the popularity of online shopping
has impacts on traditional retail shopping as a large section of the customers preferred to buy
their favourite products through online shopping nowadays. In this situation the traditional retail
shops are finding it difficult to maintain the same level of profitability and growth which is a
cause of concern regarding the existence of the traditional retail shops in the future.
The following recommendations can be offered to the traditional retail shops in order to ensure
that they manage to survive and remain competitive within the retail sector in Hong Kong:
 The traditional retail stores must offer unique and differentiated products and services in
order to attract and retain customers.
 The traditional retail shops should offer more lucrative promotional offers and discounts
in order to make them attractive towards the customers.

35
 The government must undertake certain policies and regulations in order to safeguard and
protect the future of the traditional retail shops in Hong Kong by offering them assistance
in terms of finance know-how and infrastructure.

36
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