Factors influencing consumer online buying behaviour in a project based company. A case of geothermal development company
The growth and spread of internet with an extraordinary pace over the last few decades has resulted in emergence of online purchasing of products and services. This study investigated factors influencing online buying behaviour of Geothermal Development Company (GDC) employees in Nakuru town, Kenya. GDC is a project based company with a mission of providing steam to power generation of 810MW by 2016. The study proposed four objectives which were to assess how perceived benefits, perceived risks, psychological factors and website design influence online buying behaviour of Geothermal Development Company employees. Theoretical framework that guided the study were Technological Acceptance Model (TAM) and Theory of Planned Behaviour (TPB) which are relevant to this study and were operationalized through a conceptual framework. The research design applied in this research was descriptive survey. The target population for the study were employees of Geothermal Development Company based in Nakuru town who were 732 in number. Systematic sampling was used to take a sample of 110 employees. A closed ended survey questionnaire was administered to collect primary data. Statistical Package for Social Sciences (SPSS) and Microsoft excel package was used for data analysis and findings were presented in tables. The findings indicated that perceived risk shared 39.94% of the variability of online buying behaviour of GDC employees. Similar statistically significant correlation result was arrived at for psychological factors which shared a variability of 28.73% with online buying behaviour. A medium positive relationship between perceived benefits of online shopping and consumer online buying behavior was established with a shared variability of 12.04%. Website design had a Pearson correlation coefficient of r = 0.251 p (one-tailed) > 0.05 hence it was concluded that there was no statistically significant relationship between website design and consumer online buying behaviour. The study recommends that various risk-reducing strategies should be developed by online retailers in addition to putting mechanisms in place to guarantee the quality of their merchandise and create avenues of settling disputes. Another recommendation is that online vendors should not give less priority to website design since consumers rarely focus on visual design, site content, ordering and transaction procedure in making purchase decision via the internet.