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

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

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The advent and subsequent growth of internet services have 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 constitutes a typical form of online shopping that enables consumers and sellers to carry out buying and selling of products and services directly over the Internet using a browser. Botha, J.; Bothma, C.; Geldenhuys, P. (2008). 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 the products and services available and their prices. As of 2016, online shopping has become popular through the use of a range of different computers and devices, including desktop computerslaptops, 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 the attainment of business goals. It enables an organization to appraise Key Performance Indicators and determines the efficiency and success of the firm's business activities. 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 a higher 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 customer's 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 OBJECTIVE   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 the nature of online shopping.

2 To determine the effectiveness of online shopping on business performance.

3 To determine the effectiveness of online shopping on business performance in Jumia.

1.4 RESEARCH QUESTIONS

1 What is the nature of online shopping?

2 What is the effectiveness of online shopping on business performance?

3 What is the effectiveness of online shopping on business performance in Jumia?

1.5 STATEMENT OF THE HYPOTHESIS

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

HO    The effectiveness of online shopping on business performance in Jumia is low.

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 a 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 appraisal of the impact of pricing strategy on organizational Competitiveness. A case study of MTN Nigeria.

1.8 LIMITATION OF THE STUDY

The study was confronted with logistics and geographical factors

1.9 DEFINITION OF TERMS

ONLINE SHOPPING DEFINED

online shopping constitutes a typical form of  online shopping which enables consumers and sellers to carry out  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 methods or financial indicators.

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