THE EFFECTIVENESS OF ONLINE SHOPPING ON BUSINESS PERFORMANCE. A CASE STUDY OF JUMIA.


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THE EFFECTIVENESS OF ONLINE SHOPPING ON BUSINESS PERFORMANCE. A CASE STUDY OF JUMIA.

ABSTRACT

The paper examines THE EFFECTIVENESS OF ONLINE SHOPPING ON BUSINESS PERFORMANCE. A CASE STUDY OF JUMIA. The study contained five chapters. Chapter one discussed the introduction of the study. It contains the background to the study, statement of problem, research questions and objectives amongst others. Chapter two reviewed relevant literatures related to the study in the context of conceptual review, theoretical review and empirical review. Chapter three presented the research methodology adopted in the study. Chapter four contained the presentation and discussion of results. Chapter five contained the summary of findings, conclusion, recommendations and suggestions for further studies.

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The advent and subsequent growth of internet services has led to a significant change in the nature of transacting business. Consequently, the conventional buying and selling in supermarkets, stores and open markets can be equally done through the internet. Therefore, doing business on the internet has led to Online shopping. Conceptually , online shopping constitute a typical form of online shopping which enables consumers and sellers to carryout  buying and selling of  products and services  directly  over the Internet using a browser. Botha, J.; Bothma, C.; Geldenhuys, P. (2008). The Consumers can access the product of their interest by visiting the website of the seller directly or by searching for alternative vendors using the internet shopping search engine, which displays theproducts and services available andtheir prices. As at 2016, online shopping has become popular through the use of a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.The use of online shopping has provided support to the improvement of business performance through increased sales as a result of access to online and offline customers. Business Performance is the optimization of overall business performance and attainment of business goals. It enables an organization appraise Key Performance Indicators and determines the efficiency and success of the firm’sbusinessactivities. The study seeks to appraise the effectiveness of online shopping on business performance. A case study of Jumia.

1.2 STATEMENT OF THE PROBLEM

The use of online shopping is however faced with challenges such as the inability to inspect products physically before purchase. This condition places the consumers at ahigher risk of fraud as the items ordered online, may not work properly, have defects, or may not be the same item pictured in the online photograph. There are also security challenges as online payments may expose the customers banking details to hackers. The impact of such breaches could be devastating. Computer security is currently a major concern for merchants and online shopping service providers who are evolving ways to eradicate and mitigate various security challenges in the use of the internet for transacting business. Therefore, the problem confronting the study is to appraise the effectiveness of online shopping on business performance. A case study of Jumia.

1.3 OBJECTIVES OF THE STUDY

The Main Objective of the study is to appraise the effectiveness of online shopping on business performance. A case study of Jumia;The specific objectives include:

1. To determine theeffectiveness of online shopping on business performance.

2. To examine the challenges consumers’ face with online shopping.

3. To proffer solutions to these challenges. 

1.4 RESEARCH QUESTIONS

1. What is the effectiveness of online shopping on business performance?

2. What are the challenges consumers face with online shopping?

3. What are the solutions to these challenges?

1.5 STATEMENT OF THE HYPOTHESIS

The statement of the hypothesis for the study is stated in Null as follows:

Ho:There is no significant effect of online shopping on business performance.

1.6 SIGNIFICANCE OF THE STUDY

The study appraises the effectiveness of online shopping on business performance. A case study of Jumia. The study shall therefore serve as veritable source of information to stakeholders to proffer interventions which will address the problem.

1.7 SCOPE OF THE STUDY

The study focuses on the effectiveness of online shopping on business performance. 

1.8 LIMITATION OF THE STUIDY

The study was confronted with logistics and geographical factors.

1.9 DEFINITION OF TERMS

ONLINE SHOPPING DEFINED

online shopping constitute a typical form of  online shopping which enables consumers and sellers to carryout  buying and selling of  products and services  directly  over the Internet using a browser

FIRMS COMPETITIVENESS DEFINED

The firm’s competitiveness lies in its ability to provide products and service more effectively and efficiently than its competitors. It is the ability of the firm to maintain sustained success and the ability to compete favorably with the world's best firms in cost and quality of goods or services.

FINANCIAL PERFORMANCE DEFINED 

This is the measure of the firm’s financial returns or goals through the use of evaluation method or financial indicators.

RETURN ON INVESTMENT DEFINED

The return on investment defines the firm’s efficiency in the utilization of the invested capital. This ratio is determined as net profit after tax divided by total paid in capital. 

CUSTOMER SATISFACTION DEFINED

Meeting or exceeding customer expectations.

REFERENCES

Botha, J.; Bothma, C.; Geldenhuys, P. (2008). Managing Online shopping in Business. Cape Town: Juta and Company Ltd. p. 3. ISBN 9780702173042.

Doherty, N.F.; Ellis‐Chadwick, F.; Hart, C.A. (1999). "Cyber retailing in the UK: the potential of the Internet as a retail channel". International Journal of Retail & Distribution Management. 27 (1): 22–36. doi:10.1108/09590559910252685

Lambert, Laura (2005). The Internet: A Historical Encyclopedia: Chronology. Vol. 3, Volume 3. Santa Barbara, CA: ABC-CLIO. p. 100. ISBN 978-1851096596.

Zinkan, George (2011). Advertising Research: The Internet, Consumer Behavior, and Strategy. Chicago: American Marketing Association. p. 33. ISBN 9781613112717.

.

THE EFFECTIVENESS OF ONLINE SHOPPING ON BUSINESS PERFORMANCE. A CASE STUDY OF JUMIA.


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