Low transaction cost via application and 7-Eleven online shopping

Abstract

This study investigates benefits of online technology that influence the intention to purchase on online channel or an intention to switch form non online shopping mode choice to online shopping mode, focus on an influence of time saving and cost saving benefits of online shopping on an intention to purchase products on a mobile application of 7-Eleven Thailand. As for both saving benefits of online shopping are duplicate with competitive advantages of convenience store as well. Therefore, this paper was direct by whether these time and cost saving benefits will also have significant effect on the intention to purchase from convenience store on online application or customers would see that by purchasing in store of 7-Eleven is already provided convenience and their satisfaction in time and cost saving has already met.

Theory of planned behavior is used as based theory in developing the model to investigate effects of online shopping benefits. Data collection is done by online survey on customers of 7-Eleven who reside in Bangkok Metropolitan. The proposed research model is tested by regression analysis to inspect relation between perceived time saving, perceived cost saving, online promotion, financial security and privacy risk, consumer’s attitude and experience, online shopping experience, gender, average income, education level and occupation on the intention to purchase on the application of 7-Eleven.

The result shows significant effect of both cost and time saving benefits on consumer’s intention to purchase products on mobile application of 7-Eleven in positive ways. Moreover, the benefits of these two have higher effects than an online promotion which have been highly use in many of 7-Eleven marketing campaigns. The result from this study could be benefits for the company of 7-Eleven and also other companies of convenience store that wish to accommodate the online shopping strategies and use the benefits of cost and time saving as an attraction in any marketing campaign.