The Impact of ECommerce on Individual Habits and Spending in the Fashion Industry: Dissertation (To analyze the impact of Ecommerce on Individual habits and spending in the fashion industry)

Dissertation
(To analyze the impact of E‐commerce on
Individual habits and spending in the fashion
industry)

ACKNOWLEDGEMENT
First and foremost, I would like to express my gratitude to my mentor who has assisted
me in providing knowledge and enough support for carrying out the research in an effective
manner. Next in the series, I would like to thank my friends, colleagues and family members
who have assisted me at every stage of thesis. With their support, I was able to complete my
dissertation effectually. Lastly, I would also like to acknowledge my team members who have
helped me in gathering information and analyzing it later.
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ABSTRACT
E-commerce is new concept for current activities being carried out in different manner.
Since there is presence of communication networks, the firm makes fuller utilization of their
capability in order to develop opportunities by the entrepreneur. The rise in internet as well as
world wide web has resulted in transformation of global commerce. This demonstrates
instantaneous and inexpensive contact between sellers, investors, buyers, financers and
advertisers across the globe. Because of rapid integration of internet and other
telecommunication based functions in all the spheres of business there is rise in international
focus given on the new era of e-commerce.
The research methodology that has been used in the present dissertation positivism
philosophy has been applied. In addition to this deductive approach and descriptive research
design has been employed. The technique of sampling used in the present investigation is
probability sampling. Moreover data has been gathered from both primary and secondary
sources. The analysis of the data in the present dissertation has been done through quantitative
technique. This makes use of tools such as SPSS and Excel.
It can be concluded that e-commerce has significant impact upon the purchasing or
spending power of the customers. With the evolution of e-commerce and other technological
developments large number of business organizations are become able to serve all the customers
who resides at different places of the world. People spend more time on social networking sites.
Thus, Moreover, business entity who offers online product or services can encourage potential
customers by placing an advertisement on social networking sites. In order to increase the
individual habit and spending power there are several improvement is required in e-commerce.
By resolving all the issues online stores are able to push up its sales. Privacy and security is one
of the main issue due to which customers prevent to make online purchase. Thus, e-commerce
sites needs to make of authenticate software which restricts hackers to hack the banking
information of the customers.
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TABLE OF CONTENTS
CHAPTER -1 INTRODUCTION ...................................................................................................6
1.1 Overview................................................................................................................................6
1.2 Rationale for the study...........................................................................................................6
1.3 Research aim and Objectives.................................................................................................8
1.4 Research questions.................................................................................................................8
1.5 Potential significance.............................................................................................................8
1.6 Framework and analysis........................................................................................................9
1.7 Chapter structure..................................................................................................................10
CHAPTER– 2 LITERATURE REVIEW .....................................................................................12
2.1 Introduction..........................................................................................................................12
2.2 Concept of e-commerce and its importance.........................................................................12
2.3 Benefits of e-commerce for customers................................................................................16
2.4 Key drivers for e-commerce................................................................................................19
2.5 Trends in individual habits and spending over the period of five years..............................21
2.6 Ways in which e-commerce affects individual habits and spending...................................24
CHAPTER- 3 RESEARCH METHODOLOGY...........................................................................27
3.1 Research Type......................................................................................................................27
3.2 Research Approach..............................................................................................................28
3.3 Research philosophy ...........................................................................................................28
3.4 Research Design...................................................................................................................29
3.5 Data collection methods.......................................................................................................29
3.6 Sample selection..................................................................................................................30
3.7 Data analysis plan................................................................................................................31
3.8 Accessibility issues..............................................................................................................32
3.9 Ethical considerations..........................................................................................................33
3.10 Research limitations...........................................................................................................33
3.11 Reliability and validity of the research .............................................................................34
3.12 Conclusion.........................................................................................................................35
Chapter -4 data analysis ................................................................................................................36
4.1 Introduction..........................................................................................................................36
4.2 Quantitative analysis............................................................................................................36
CHAPTER- 5 CONCLUSION AND RECOMMENDATIONS...................................................53
5.1 Conclusion...........................................................................................................................53
5.2 Recommendations................................................................................................................57
REFERENCES..............................................................................................................................61
APPENDIX ...................................................................................................................................66
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CHAPTER -1 INTRODUCTION
1.1 Overview
In the present competitive business era, e-commerce is becoming one of the fastest
growing branches of trading through internet. It is an effective tool that is applied by the firms
with an aim to increase the sales of its products and services. Before the development of e-
commerce, process of marketing was sales force driven. With the emergence of it, the overall
process of trading has been changed. Thus, it can be stated as the process of carrying out
business transactions through internet. E-commerce exists since 40 years which came into
emergence from transmission of message electronically (Goldmanis, Hortaçsu, Syverson and
Emre, 2010). E-commerce possesses a significant role in advertising and distributing the
products and services to distinct locations. The internet technology has gained acceptance
because of the fact that in 2005; more than 42 million households have broadband cables and
DSL access. As there is increase in number of individual’s purchasing online, there is rise in e-
commerce trend which has made the process of trade much easier than ever before.
Before 10 years ago, several retail firms do not believe that customers would ever make
the purchase of fashion online. However, it has turned to be wrong. Today, high street retailers
are trying to determine their percentage of sales in case if they sell through the means of e-
commerce. The sales of online apparel continue to capture higher market share. In the present
scenario, retailers are trying to enhance their scale of e-commerce operations (E- commerce is
changing the fashion industry- its time to catch up, 2016). This is done by making investment in
online sale platforms that displays the products and converts the prospects into buyers in an
effective manner. E-commerce has gained success in the category of apparel as a reason of easy
and free returns and innovative tools of visualization that result in increasing the sales by fashion
industry. Thus, it has become difficult to measure the scope of e-commerce in market place as it
provides greater advantage over bricks and mortar stores and mail order catalogs.
1.2 Rationale for the study
The purpose for which present investigation is carried out is related with the analysis of
impact of e-commerce on individual’s habits and spending in fashion industry. The research will
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be carried out in the field of online business as it is becoming important in the present
competitive era.
What is the research issue?
The issue in present research is in relation with the changing habits of customers that has
a greater impact on the way in which firm operates. Further, with the emergence of e-commerce,
there is decline in the sales of outlets in fashion industry. Thus, this requires them to adopt
suitable strategies of carrying out business transactions so that they can gain competitive
advantage in the long run.
Why it is an issue?
It is an issue due to the reason that today; individuals are located at distinct and remote
places. Moreover, they possess busy work schedules. Thus, this in return has huge impact on
buying habits of the customers. Today, individuals are unable to devote their time in buying
products and services of fashion industry from boutiques or outlets (Pahnila and Warsta, 2010).
Further, the inclination towards purchasing online is increasing significantly as it offers many
benefits to the customers. With this, there is decline in the sales and profitability of businesses
that are not operating online. Therefore, it affects their survival in the market for longer time
span.
Why it is an issue now?
This has become an issue now days because there is greater competition among
organizations which are operating in the fashion industry. These businesses are increasing their
sales by carrying out trade over internet (Crespo and del Bosque, 2010). This leads to the
accomplishment of consumer’s demand with greater ease and minimal efforts. Further, it also
facilitates in benefiting the individuals who are residing at distinct locations.
What could this research shed light on?
Present investigation sheds light on the role of e-commerce in bringing changes in the
habits and spending of consumers. Further, thesis would demonstrate the advantages of online
business for customers. Along with this, it also demonstrates the major drivers for e-commerce.
Lastly, it sheds light on the trends that have emerged in the individual habits and spending over
the period of five years.
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1.3 Research aim and Objectives
The aim of present dissertation is to analyze the impact of E-commerce on individual
habits and spending in fashion industry in Middle East area.
Research Objectives
 To explore the concept of e-commerce and its benefits for customers.
 To assess the key drivers for e-commerce.
 To identify the trends in individual habits and spending over the period of five years.
 To investigate the impact of e-commerce that affects the individual habits and their
spending power.
1.4 Research questions
 How e-commerce is benefiting the customers of fashion industry?
 What are the key drivers for e-commerce?
 How e-commerce influences individual habits and spending in fashion industry?
 What are the trends prevailing in individual habits and spending over the period of five
years?
1.5 Potential significance
Present study is suitable in carrying out in-depth assessment of the impact of e-commerce
on individual habits and spending in fashion industry. Moreover, it helps in gaining knowledge
regarding the benefits of e-commerce for consumers. The potential significance of present
research has been presented as such. Present thesis possesses greater significance for the scholars
and researchers who have interest in conducting investigation on the similar subject that is
related with assessing the impact of e-commerce in fashion industry. In addition to this, present
research would be of greater importance for the academicians who are conducting Ph.D. This is
due to the reason that present investigation provides adequate amount of knowledge in relation to
e-commerce and the manner in which it influences individual habits and their spending power.
Present thesis can prove to be significant for e-commerce industry as it would assist in
gaining in-depth knowledge to conduct the transactions of business with minimal efforts.
Moreover, it assists them in developing understanding regarding the benefits of using e-
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commerce while carrying out the trade. Another major significance of present research is for the
thinkers and scholars (Ha and Stoel, 2012). This is because; the investigation represents
innovative information in relation to the methods that are being applied while the study is being
carried out. Such can be helpful for thinkers in developing better understanding regarding the
methodologies in an effective manner.
1.6 Framework and analysis
It is one of the most significant sections of the research. This is significant due to the
reason that through this, analyst can effectively gain insight to the outcomes from investigation.
In addition to this, it facilitates in developing sound decisions by the researcher. By considering
this, there are several stages which have been presented in the following manner: Research philosophy: It is defined as the development of background, knowledge as well
as its nature for investigation. Research philosophy has been divided into two categories
which includes positivism and interpretivism. In the present thesis, positivism philosophy
will be applied. This is because; it assists the researcher in presenting his own opinions
for the evaluation of social world. Research approach: It is referred as the manner in which investigation is being carried
out in future. Research approach is categorized into two which includes deductive and
inductive approach. For the present dissertation, deductive approach will be employed as
it provides opportunity towards hypothesis development by the researcher with the use of
theory (Sample Dissertation Methodology, 2013). Research design: It is considered as an overall strategy that can be selected with an aim to
integrate various components of research in a logical manner. This assists in ensuring that
research problem is addressed in an effective way. There are three kinds of research
designs which involves exploratory, descriptive and causal. In the present thesis,
descriptive research design will be employed. This is because; it acts as an aid in
describing the characteristics of population in an effective manner (Research design,
2014). Sampling: The concept of sampling can be defined as a tool which is applied with an aim
to study the selected items. Sample is referred as a subset of population that assists in
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