Understanding Customer Purchase Intentions in E-commerce: A Case Study of Shopee

This research aims to understand the factors influencing customer purchase intentions in the e-commerce platform Shopee. The study focuses on perceived ease of use, security and privacy, usefulness, budgeting, and convenience. The findings will provide insights for Shopee to improve its management and customer care strategies.

Declaration by student:
We, Vivione Tan Wei Wen, Tan Hui Yu, Chin Wei Yee, Clement
Ooi Kai Xuan, Muhammad Uzair, Linisha Subramanaiam and
Ng Jia Ying, thereby certify that the enclosed report is our
individual effort, as well as we understand that if we are found to
have plagiarised or otherwise deceived, the faculty member will be
notified. The lecturer may then suggest to the Examinations Board
that we have our enrollment in the programme aborted.

Abstract

Acknowledgement
First of all, we would want to express our gratitude to God for
enabling us to complete the work that was assigned to us by our
lecturer. Despite a small issue that arose among us while working on
this assignment, the group members completed this task to the best
of their abilities. Fortunately, all of the issues can be resolved, and
we were able to appropriately and wisely react. Additionally, a
sincere thank you goes out to our dear lecturer. When exploring
Malaysian Studies 5.0, Mr. Eric Kong always teaches and mentors us
on what to learn and what to know to produce quality homework
and tasks. A special thanks to our family members and friends who
have consistently helped us fulfil our assignments in terms of
willingness to complete our survey. We believe that every afford will
be beneficial to us. We would like to extend a sincere thank you to
all of our classmates for their assistance with our group project.
They regularly provide us with suggestions and feedback on our
work so that we may make numerous improvements.

1.0 Introduction
The world today is bringing forth an increase in connectivity that
is altering how we purchase. Since the previous two decades, more
individuals have tended to shop online simply because it is more
handy and requires less time then traditional techniques. According
to Sahney et al. (2013), the industry has seen an increase in the
number of online payments due to a change in shoppers' purchasing
habits from in-person to online shopping. Presently, a significant
barrier to client banking transactions seems to be the low level of
confidence in online purchases. According to Ang and Lee (2000),
the portals offering is unable to generate online purchase intentions
because it cannot win the trust of the buyer.
Besides that, understanding and controlling the complexities of
customer behaviour, which can be described in terms of behavioural
difficulties (Mukherjee and Nath, 2003; Coulter and Coulter, 2002),
becomes essential. The report by Sahney et al. (2013) found that
the assured refund policy, website quality image, security
perception, and buyer information safety all setting enables with
online trust. Internet banking trust is lowered as a result of the
perceived risk associated with online purchases. (2012)
D'Alessandro, Girardi, and Tiangsoongnern Despite the fact that
both criteria affect the intent to make an online purchase, Hsin and
Wen (2008) discovered that the relationship between perceived risk
and trust is reciprocal.

1.1 Background os study
Since everyone is so preoccupied with their individual device
these days, such as mobile phone, tablet, or laptop. It is simpler to
draw customers to stores or to enable them to purchase their
necessities when using Shopee apps. Beyond our knowledge, the
popularity of e-commerce like Shopee has altered the way of living
and lifestyle. Before, individuals used to have to go somewhere to
get the goods we wanted. These days, people can purchase meals
and drinks, travel, and lodging utilizing their gadgets, which we are
able control whenever and wherever we are.
The real estate developer and group executive of the technological
company Sea, Forrest Li, is the owner of the e-commerce portal
Shopee. As its founding in Queenstown, Singapore in February 2015,
this firm has expanded to include Malaysia, Thailand, Indonesia,
Taiwan, the Philippines, and Vietnam. It demonstrates how readily
recognised and easily enlarged the world of digital entertainment is
as an online purchasing channel.
In Greater Southeast Asia, Sea is known as a pioneer in e-
commerce, digital entertainment, and digital financial services.
Shopee, which started out as a consumer-to-consumer market
system, has transformed into a blended business-to-consumer
model. Due to the frequent purchases and massive activity on
Shopee, the company now employs more than 8000 people.
Shopee's objective is to make online buying for customers on its
platform easy, efficient, and entertaining every day (Shopee
Career). The structure of the organization and strategic planning of
Shopee will be demonstrated in this assignment. By providing a one-
stop buying experience with a large assortment of products, flawless
fulfilment services, and a social network for discovery, Shopee

positioning supports internet consumers beyond countries. The most
popular e-commerce platform in Southeast Asia, including Malaysia
and Taiwan, is called Shopee. This channel, which has been
localised, offers customers safe and quick online payment options,
as well as a wide range of options even when the product is from
another country. The material support, such J&T Express and Pos
Laju Express, also has a significant impact on this business.
Through constant product improvement and consumer-centered
tactics, Shopee aims to advance their service and establish
themselves as the go-to regional e-commerce destination. In
addition, they feature a wide range of product categories, including
those for household and living, toys and infants, fashion, health, and
beauty.
Due to last MCO, I believe Shopee has become necessary because it
offers Malaysian people roughly 10,000 various types of goods for
buying everyday needs. Individuals typically avoid shopping at the
grocery store during MCO since it requires a lot of waiting in lines
and there is a high risk of contracting the disease from others. In
order to make sure there is enough stock to meet Malaysians'
demands, they are collaborating thoroughly with their strategic
partner, reseller, and vendors from big stores including Mydin,
Lotus's, Aeon Big, and many others. Shopee provides a network
online shopping experience that provides a broad range of products,
excellent fulfilment services, and a social network for discovery to
all internet users interested in online shopping around Asia.
Additionally, Shopee believes that by uniting everyone—including
consumers and sellers—in one community, it will unleash the
revolutionary power of technology and create the finest platform
possible.

1.2 Statement of problem
Despite the large number of negative remarks on online sites and
Shopee's online site, Shopee has not taken particular measures to
address the matter as of now. The objective of this research is also
to identify the company's problems and propose acceptable
suggestions for its management and customer care strategies in
order to help Shopee maintain its position as one of the most
reliable e-commerce companies.
Moreover, purchasers get a straightforward mutual trust between
the value as well as the product whenever they are glancing for
something on the website, and while they are start to look at the
catalogue, users demand the merchandise to be as it says to be an
outcome with most of the nessecary features and functionality
where they can experience and/or use, this reflects up a different
threat for the methods that Shopee presents. Lim and Fern (2021)
Whenever customers feel there is an absence of service, Shopee will
find it more difficult to keep its customers.
1.3 Research Objectives
1. To determine perceived ease to use affects customer purchase
intentions in e-commerce platform Shopee.
2. To determine the security and privacy affects customer purchase
intentions in e-commerce platform Shopee.
3. To determine the usefulness affects customer purchase
intentions in e-commerce platform Shopee.
4. To determine the budgeting affects customer purchase intentions
in e-commerce platform Shopee.
5. To determine the convenience affects customer purchase
intentions in e-commerce platform Shopee.

1.4 Research Questions
6. How perceived ease to use affects customer purchase intentions
in e-commerce platform Shopee?
7. How security and privacy affects customer purchase intentions
in e-commerce platform Shopee?
8. How usefulness affects customer purchase intentions in e-
commerce platform Shopee?
9. How budgeting affects customer purchase intentions in e-
commerce platform Shopee?
10. How convenience affects customer purchase intentions in e-
commerce platform Shopee?
1.5 Scope of the Study
This research's focus seems to be on the independent factors that
influence consumers' intent to buy at Shopee. The purpose of this
study was to precisely uncover characteristics that influence
consumer decisions to shop at Shopee. The addition to knowledge
and experience questionnaire is split into three sections to ensure
data precision and clarity. Ten questions in the first part of the
survey asked about respondents' racial and ethnic backgrounds,
marital status, job status, monthly income, and age group. The
second section that came next had five questions for every
independent variable. This part of the form has five independent
variables: perceived ease to use, security and privacy, usefulness,
budgeting, and convenience. Part three, which represents the
dependent variable, purchase intention, was the final section. Five
questions made up section three, and each one related to the
independent and dependent variables. This paper aims to examine

any instances in which the independent variables that affect
purchase intention have a significant impact. Additionally, the
survey is made with Google Form and broadcast via media
platforms. There were 200 targeted customers that made purchases
or used the services at the Sephora beauty store in Gurney Paragon
Penang, Malaysia; however, only 175 sets of the questionnaire are
useable due to missing data and other issues. (TBC!!! )
1.6 Significant of Study
PENDING!!
1.7 Organization of Chapters
The report will be subdivided into five (5) chapters to ensure a good
portrayal of the content. The first chapter will contain the
introductory, which discusses the study's history, issue statement,
aims, research questions, methodology, importance, and study
constraints. Analysis of related research on the topic is the subject
of Chapter 2, which is divided into pertinent subtopics. The third
chapter will cover the technique the study utilised, which includes
the demographic, sample, and data collection method for the study,
along with the tools for research methods. Further evaluation and
reporting of the study's findings will be covered in chapter four. This
is accomplished by using examples, statistical presentation,

explanation of the questionnaire and survey data. Chapter 5 will
engage with the report's summary, results, recommendations, and
ideas.