Dissertation: E-commerce's Impact on Fashion Industry Spending

This dissertation examines the influence of e-commerce on individual habits and spending within the fashion industry, particularly in the Middle East. It explores the evolution of e-commerce, its benefits for consumers, and the key drivers behind its growth. The research employs a positivism philosophy, a deductive approach, and a descriptive research design, utilizing both primary and secondary data collected through probability sampling. Quantitative analysis, including tools like SPSS and Excel, is used to analyze the data, concluding that e-commerce significantly impacts customer purchasing power. The study also addresses the importance of addressing issues like privacy and security to enhance the e-commerce experience and increase sales. The dissertation covers the rationale, objectives, research questions, and potential significance of the study, providing a comprehensive overview of the impact of e-commerce on 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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representing the entire population. The methods of sampling include probability as well
as non probability sampling. In the present thesis, probability sampling will be employed.
Under this, selection of sample will be done on random basis. This is because; it provides
an equal chance to every individual for getting selected as a participant for the
investigation. The size of sample will be 50 customers who make use of online services
for the satisfaction of their needs in Middle East area. Research types: This can be qualitative and quantitative. The present investigation is
quantitative in nature. Therefore, quantitative research type will be employed in the
present thesis. Data collection: It serves as an important aspect in each investigation. It involves
application of appropriate tool that can be used by the researcher for collection of data
which thereby results in the achievement of research aim and objectives. In the present
thesis, data will be gathered through both primary and secondary sources. For primary
data, collection technique of survey will be used. This requires development of
questionnaire by the researcher. On the other hand, secondary data will be gathered
through several sources such as books, online articles and journals (Secondary Research
– Advantages, 2014).
 Data analysis: Another major aspect after the collection of information is related with
analysis of data. It is defined as the procedure that facilitates in applying logical as well
as statistical tool with high level of effectiveness. In the present investigation,
quantitative technique will be used. This makes an effectual use of tools such as SPSS
and Excel.
1.7 Chapter structure
The present research involves several chapters that act as an aid in the accomplishment of
thesis. In the present dissertation, chapters that will be discussed are stated as under: Chapter- 1 Introduction: This is considered to be the first part of thesis. It involves
overview of phenomenon under study. The chapter is effective in providing framework
with respect to the subject under investigation. At the beginning of research, overview of
topic is presented. Further, this involves detailed assessment of research study and its
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association with the organization. Along with this, it also involves aim and objectives of
research on the basis of questions relating with investigation. Lastly, it covers the tools
that will be engaged in research with their significance. Chapter- 2 Literature review: This is another crucial part of dissertation that includes
opinions of various authors with respect to the behavior of individuals towards e-
commerce. This section makes evaluation of the knowledge as well as information which
prevails in the piece of literature as a secondary source. Further, the role of e-commerce
in fashion industry will be involved in this section. The chapter gives clear picture of the
author’s views regarding the impact of e-commerce on individual habits as well as on the
spending of people in fashion industry. Based upon published information, in-depth
research will be carried out with respect to the subject matter under research. Chapter- 3 Research methodology: This chapter of dissertation includes tools and
techniques that will be employed for conducting investigation. This is in accordance with
the objectives of research. This section presents the tool that can be used for carrying out
the research. Further, justification for the selection of particular technique will be
provided. This is done with an aim to offer in-depth knowledge regarding phenomenon
under study. Chapter- 4 Data analysis and findings: In this section, researcher presents the
information that is collected with the assistance of primary as well as secondary sources.
The chapter involves analysis of gathered data. With the assistance of this, analysts will
be able to draw valid outcomes from the investigation.
 Chapter- 5 Conclusion and recommendation: It is the final section of thesis that includes
demonstration of outcomes that are gathered at data analysis stage. In addition to this, the
chapter presents suitable recommendations that can facilitate in addressing the research
issues.
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CHAPTER– 2 LITERATURE REVIEW
2.1 Introduction
Following the initial chapter of introduction, another part of thesis includes review of
literature. This section covers the opinions of different authors with respect to phenomenon
under subject matter. The data reflected under this chapter is collected with the assistance of
secondary sources. With the assistance of such, investigator is able to further conduct the
research. There is greater role of literature review section in analyzing the gap which has taken
place in the researches that have been carried out earlier. Efforts are being made in order to
reduce the gap in the present investigation so that valid outcomes can be drawn. In addition to
this, chapter involves critical evaluation of the viewpoints of analyst in a brief manner. Thus, this
acts as an aid in the development of theoretical base with respect to the phenomenon under
study. The chapter of literature review in the present thesis involves concept of e-commerce and
its importance. Further, it covers advantages of online trade for customers. At last, the section
makes evaluation of trends within individual habits and their spending over period of five years.
Chapter portrays the manner in which e-commerce influences the habits and spending of
individuals.
2.2 Concept of e-commerce and its importance
The higher rate of organization for conducting business over internet has increased the
importance e-commerce. In accordance with the views of Mamaghani, (2009) it has been
assessed that e-commerce is a new concept for current activities being carried out in a different
manner. Since, there is presence of communication networks, the firm makes optimum
utilization of their capability in order to develop the opportunities by entrepreneur. The rise in
internet as well as World Wide Web has resulted in the 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 that is given on the new era of e-commerce. As per the viewpoints of Kraemer and et.al.,
(2006), it has been examined that the concept of e-commerce is much broader which not only
encompasses EDI but other forms of communication as well. This can include E-mail as well as
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electronic bulletin boards. The development of EDI was done with an aim to exchange high
volume of commercial documents in a standardized electronic format. The term e-commerce
refers to buying and selling of commodities and transmission of funds over electronic network. It
has been assessed that these transactions of organization occurs either in case of business to
business, business to consumers, consumer to business or consumer to consumer. The concept of
e-commerce as well as e-business is frequently used interchangeably. In accordance with the
views of Hertwich, (2005), it has been gained that e-commerce can be carried out by using a
wide range of applications. This includes online catalogs, email, fax web services, electronic data
interchange, file transfer protocol as well as shopping carts. There has been increased
development in the era of e-business. In the present competitive business environment, e-
commerce is considered as boon for the firms in carrying out their activities online in an
effective manner. On the other hand, it is referred as any kind of business transaction where
parties interact with each other through electronic means instead of physical exchange or direct
physical contact. From the opinions of Shahriza Abdul Karim and Hasan, (2007), it can be
asserted that e-commerce is attached with buying and selling through internet. This also includes
carrying out transactions with involvement of transfer of ownership or rights of utilizing goods
or services by computer mediated network. The e-commerce technology makes an effectual use
of electronic communication as well as digital information processing technology in business
transaction in order to develop, transform as well as redefine the relationship for creating value
between organizations and individuals. AlGhamdi and et.al., (2012) asserts that e-commerce has
been in existence since 90s. However, since few years, e-commerce is gaining huge attention
from the entrepreneur as well as customers both at local and international level. This is majorly
due to reason that is related with the presence of highly successful operations on certain
renowned internet names that includes eBay, Yahoo and Dell.
As per the views of Palvia (2009), it has been examined that e-commerce has a great
importance on the basis of fact where time is essence. In commercial market, the role of time is
important for both consumers as well as business. From the perspective of business, if less time
is spent on every transaction then more value can be generated by organization on the particular
day. In addition to this, consumers would want to save a lot of time while transactions are being
carried out. Due to this reason, stages in e-commerce have replaced traditional commerce where
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