Interdisciplinary ICT Practice Conference 2015 (IIPC2015) Ipoh, 24th February 2015

THE PROPOSE PROCESS MODEL ON THE DEVELOPMENT AND

MEASURING ACCEPTANCE OF E-RETAIL BUSINESS

Rashdan Bin Rashid

Othman Yeop Abdullah Graduate School, Universiti Utara Malaysia
rashdan@ptsscoop.com.my
Hashamuddin Bin Yaakob
Jabatan Perdagangan, Politeknik Ungku Omar
hashamudin@puo.edu.my
Ashri Bin Taib
Jabatan Matematik, Sains dan Komputer, Politeknik Port Dickson
Ruhaznawati Binti MdRudzi
Unit Latihan dan Pendidikan Lanjutan, Politeknik Kota Kinabalu
Salawati Binti Saleh
Jabatan Perdagangan, Politeknik Sultan Haji Ahmad Shah

ABSTRAK
The purpose of this research is to utilize design research methodology in
a context of developing e-retail business through a demonstration of cooperaive e-retail website process model. Study on design research on
process model remain to be explore especially on CMS. This is an
extension of researcher previous studies that have presented before this.
Five stages (Planning and Requirement, Develop and Design, Evaluation,
Implementation, and Internet Marketing) which are derived from previous
researches are used to develop co-operative e-retail business. A process
model of e-retail website was proposed and an output of e-retail website
so called artifact was then evaluated through empirical analysis. Unified
Theory of Acceptance and Use of Technology (UTAUT) was carried out to
measure the acceptance. The result indicates that Performance
Expectation and Social Influence have a significant effect towards
Behavioural Intention on co-operative e-retail website. Facilitating
Condition has a significant effect on Use of Technology.
Kata kunci: design research, e-retail business, UTAUT
INTRODUCTION
The Internet has become the means for firms and consumers to conduct businesses.
The impact of the World Wide Web (WWW) has been so huge in the retail sector
which has resulted in a new form of retail format known as electronic retailing or etailing (Zetty Madina et al., 2011). Internet connection at home increases individuals
probability to shop online up to 14% in Spain (Prez-Hernndez & Snchez-Mangas,
2011). Many factors determine the success or failure of e-retail business but many
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Interdisciplinary ICT Practice Conference 2015 (IIPC2015) Ipoh, 24th February 2015

organizations are not successful in achieving the implementation of IT due to lack of

understanding and different views among business and IT managers on design system
methodology in current system development (Suratida & Settapong, 2005). In
particular, design system methodology can give guidance in understanding the new
organizational setting and improvisation learned in practice to close gaps between
published academic research and industry practitioners (Iacono, Brown, & Holtham,
2009). Moreover, it is not uncommon for researcher to utilise design research
methodology because it has been accepted and recognised for decades (Norshuhada &
Shahizan, 2010). Previous discussions reveal that businesses need to respond fast and
migrate from the traditional way into information technology compliant to succeed.
This is an extension of previous research studies by Rashdan & Shahizan (2013) and
Rashdan, Yuslina and Farizah (2012) that have presented before this as a conceptual
paper. The purposes of this study are to demonstrate e-retail design process in the
development of co-operative e-retail online shop by proposing the web design process
model and to measure the acceptance of e-retail online shop.
LITERATURE REVIEW
The studies on the relationship of web design towards intention to shop online are
widely used. Previous researchers proposed practical contribution among e-retailer to
focus on certain factors and some researchers do provide a guideline in order to
design the web interface. Previous researchers suggested that website should be
special attention (Delafrooz, Laily, & Khatibi, 2010), effective interaction, familiarity
(Wu, 2003), and simple (Haque, Sadeghzadeh, & Khatibi, 2006; Khatibi, Haque, &
Khaizurah, 2006). Moreover, toolbars and web design feature have an impact on the
usefulness (Ozdemir & Kilic, 2011). Clear information, responses to FAQ, payment,
credit policies, shipping and handling costs and guarantees about product quality
should be emphasized when designing the website in order to get consumers
confidence (Teo, 2006). According to Sharma et al. (2007), website effectiveness
consists of ease of use, navigation structure, updated, effective, search options and
accessibility. Practical implications and suggestions from previous studies proposed
the guidelines of the web interface design (Cao, Zhang, & Seydel, 2005).
Noorfadzilah, Wan Fatimah and Goh (2010) discussed the guidelines for designing
user interface to help developers of e-retail websites. This been done by developing
prototype of e-commerce website namely shopping2u.com which is now inactive.
Bamasoud (2010) also proposed e-commerce website design guideline for teen
shoppers. Previous researchers tend to outline the web design guidelines and make
suggestions without trying to deploy it in real scenario. The suggestion and guideline
are quite rare being tested in actual e-retail business even a study of designing the
website is extremely important (Bailey, 2005). This research will deploy practical
suggestion from previous researcher through five stages (Planning and Requirement,
Develop and Design, Evaluation, Implementation, and Internet Marketing) which are
derived from previous researchers. It then demonstrates in co-operative e-retail
business.
In studying the utilisation of information technology systems, researchers often
depend on usage behaviour theories. There are several theories being utilised in
customer technology acceptance on online shopping behaviour. The measurement of
Unified Theory of Acceptance and Use of Technology (UTAUT) was carried after the
deployment of e-retail website. According to Venkatesh et al. (2003) performance
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Interdisciplinary ICT Practice Conference 2015 (IIPC2015) Ipoh, 24th February 2015

expectancy, effort expectancy, social influence and facilitating conditions were four
constructs that had direct significant in determining usage intention and behaviour. In
a study conducted by Marchewka, Liu and Kostiwa (2007), there was no relationship
between Performance Expectancy (PE) and Behaviour Intention (BI). However, there
was a significant relationship between Effort Expectancy (EE) and BI, as well as
Social Influence and BI. Facilitating Conditions and Social Influence have been
proven to have a significant influence (Amoroso & Hunsinger, 2009). PE construct
was considered the strongest determination of intention. This was supported by J. Lee,
Park and Han (2011), Perez-Hernandez and Sanches-Mangas (2011), Venkatesh et al,
(2003), and Weisberg et al. (2011). EE was significant in predicting behaviour
intention to online shopping (Norazah, Ramayah, & Norbayah, 2008). Previous
studies also revealed that FC was significant (Im et al., 2011; Marchewka et al., 2007;
Wang et al., 2006).
METHODOLOGY
This research differs as it proposes a design process for the development of cooperative website specifically using CMS. It is a part of design research methodology
derive from (Vaishnavi & Kuechler, 2004). Previously researchers tend to enhance
CMS features to overcome users difficulties, but there is very little research
addressing the challenge on the application of the existing CMS in a real e-commerce
environment. According to Vaishnavi and Kuechler (2004), design research
methodology consist of process steps and outputs as stated in Figure 1.

Figure 1: Design Research Model

Source: Vaishnavi & Kuechler (2004)
In this study, the awareness of the problem is generated by analyzing the literature
that in related with the newest growth and development of e-retail business. The
process model and developing a CMS e-retail website under Malaysia Polytechnic
Co-operative. Five stages (Planning and Requirement, Develop and Design,
Evaluation, Implementation, and Internet Marketing) which are derived from previous
researches have been used to develop an e-retail polytechnic co-operative website.
Direct communication with the board of co-operative along with the practitioners are
the clear way of identifying current issues and problem. From that a proposal for
doing e-retail business was presented. Suggestion be made from the analyzing of the
literature along the way with the proposal, a tentative design was produced. A few
example of open source e-commerce websites (osCommerce, easy.my, lelong.my) are
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Interdisciplinary ICT Practice Conference 2015 (IIPC2015) Ipoh, 24th February 2015

presented for evaluation and suggestion. An artefact was an output of the

development which was fully functional. In this study, the artefact was the web site
under the domain name www.ptsscoop.com.my.
The completed version of the artefact was evaluated quantitatively at the evaluation
stage. In order to practically runs the design research model, participant observation
and focus group were conducted through out the study. The acceptance evaluation of
the artefact was conducted using survey. Performance Expectation, Effort
Expectation, Social Influence and Facilitating Condition are among the construct.
Four hypotheses are developed. There are;
H1: Performance Expectation is significant effect on Behaviour Intention.
H2: Effort Expectation is significant effect on Behaviour Intention
H3: Social Influence is significant effect on Behaviour Intention.
H4: Facilitating Condition is significant effect on Actual Use.
FINDINGS AND CONCLUSION
During the Planning and Requirement Stage, a discussion on the development took
place with the board of co-operative (BOC). The proposal was presented to the BOC
on the 3rdof March 2012. According to Cooperative By-Law Book section 27 Board
of Co-operative Agenda
(c)To study, discuss and verdict a project proposal for Co-operative
and Cooperative By-Law Book section 39 Board of Co-operative Meeting (5)
(5) The Board may invite any person to attend a meeting(a) to give an advice relating to any agenda discussed;
(b) the so-called invited person shall not be eligible to put any vote; and
(c) the so-called invited person may be paid an allowance or any expenditure
subjected to the Boards decision.
During the 42 minutes presentation (video recorded), discussing on the issues and
problems, researcher emphases on the reason why co-operative should venture in
online business, process work, comparison with a few web hosting, budget allocation,
training and the tentative design.
The outcome of participation observation and case study already discuss from the
previous research done by researcher (refer Rashdan and Shahizan (2012). Then the
Development and Design stage was executed. It involves several issues such as
identifying web hosting, registering a domain and applying Content Management
Design (CMS) design. CMS provides a cost-effective platform and easy to develop
for web engineering during the development process (Souer, Urlings, Helms, &
Brinkkemper, 2011). The objectives of development were to identify the selection of
package available and comparing the package in order for possible artefact outcome.
On the Evaluation Stage, there were two types of evaluation be conducted on the
artefact. First was the usability testing for the interface and second was the acceptance
evaluation on the acceptance. Focus group consists of two groups of students (3
students each). Each group was given computers with the internet access and were
asked to navigate the website. The interview questions were based on attributes of e4

Interdisciplinary ICT Practice Conference 2015 (IIPC2015) Ipoh, 24th February 2015

commerce website from Fang and Salvendy (2003) and Noorfadzilah et al., (2010).
Audio recordings of the focus groups were transcribed to identify the web design
features that should be combined, eliminated or restated. Then, possible themes
(feedback) arise out of the text. The participant describes the search button is
confusing. The participant also describes the shopping navigation and help link.
Suggestion from the respondents that related to the web developer were then sent to
Mr Chun Howe, Business Development Executive Exabytes Network Sdn Bhd on 27
Jun 2012. A feedback received by Mr Chun Howe on 28 Jun 2012.The check out
button is being very common used in online shopping and unable to change the
payment method button and pop-up window. Check out button was essential
stage in online shopping for potential shoppers to be potential buyers by requiring
payment information afterwards (Close, Kukar-kinney, & Benusa, 2012). The
Implementation stage was when the co-operative e-retail officially launch. Team
members involve in training, handling order and sales. This research shows the
integration of Facebook in the process model in Internet Marketing stage.
Furthermore electronic word of mouth (eWOM) are crucial in virtual communities.
Quantitative study was conducted to evaluate the acceptance usage of e-retail
(artifact). 500 questionnaires were sent to five polytechnic in Malaysia and 389 were
collected. After screening the data, treatment the outliers, normality and factor
analysis the multiple regression analysis was conducted. Regarding the effect of
performance expectancy, effort expectancy and social influence on behavioural
intention, H1, H2 and H3 were tested. Result is summarised in Table 1. It was
indicated that all three independents variables explained 49.4 percent of behavioural
intention (R2=0.494, F=119.491, p<0.01). Out of three variables, social influence was
found to have the biggest significant effect on behavioural intention (=0.357,
t=4.626, p<0.01), and followed by performance expectation (=0.319, t=4.293,
p<0.01). Effort expectancy was found to have no significant effect on behavioural
intention (p>0.05). These findings had successfully supported H1 and H3, but failed
to support H2. Hence, H1 and H3 were accepted.
Table 1 Multiple regression analysis on PE,EE and SI
B
.319
.118
.357
0.494
119.491
0.000

Performance Expectation
Effort Expectancy
Social Influence
R2
F
Sig.

T
4.293
1.463
4.626

Sig.
.000
.144
.000

This analysis was also attempted to test H4. Result indicated that the model explained
35.4 percent of Actual Use. Facilitating condition was also found to have a significant
effect on Use Behaviour (=0.606, t=14.233, p<0.01). Hence, H4 was also accepted.
Table 2 shows the result.
Table 2 Multiple regression analysis on FC
Facilitating Condition

R2
0.354

F
202.590

B
0.606

t
14.233

Sig.
0.000

Interdisciplinary ICT Practice Conference 2015 (IIPC2015) Ipoh, 24th February 2015

SUGGESTION AND CONCLUSION

Most previous researcher model focuses more on technical issues regarding of
requirement analysis, even though, managerial issues also should be taken into
consideration. This process model was tested in end user actual e-retail business.
Previous model focuses on architecture of CMS by using HTML.CSS, PHP or other
languages whereby web developer should have a good knowledge of programming
language while this model focusing on Content Management System (CMS). Most
previous researcher performs usability testing so as this model. But additionally this
model also performs evaluation on acceptance. An added stage in this model was
internet marketing. Previous model ends with the implementation (such asAbels et al.,
1999; Long et al., 2005; Hocko, 2011), maintenance (such as Cunliffe, 2000) or
testing (such as Kiatruangkrai et al., 2010). As a conclusion, the process model for eretail business was shown in Figure 3.

Figure 3 : e-Retail Process Model

Then the artefact was measured using UTAUT. In general, the actual use does not
always end with consumers purchasing product from the online store. In some cases,
consumers search to get information to reduce the uncertainty of product purchasing
in the website and it was also indicated as actual use. Multiple regression analysis
showed Performance Expectancy was proven as important determinants of
Behavioural Intention. It was also consistent with previous studies such as Venkatesh
et al.(2003), Wang et al. (2006) and, Nysveen and Pedersen (2014). Researcher
believes that students with high Performance Expectancy are more likely to use eretail website. Thats why, during participant observer activities, researcher focuses
on the web contents which are valuable for the potential customer. Apart from CMS
can solve issues in the website development and perform maintenance for nonprofessional web designer, not much effort was necessary to navigate a CMS online
shopping website. These might make no difficulty for students to use e-retail website.
Along with a study by Wang et al. (2006) shows partial significant effect of Effort
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Interdisciplinary ICT Practice Conference 2015 (IIPC2015) Ipoh, 24th February 2015

Expectancy on Behavioural Intention in a study on e-government. In perceived ease

of use, Cha (2011) also shows an insignificant effect of PEOU with purchase intention
of virtual product items. This research also shows that social influence has a
significant effect on student intention. This is in line with previous studies by
Venkatesh et al. (2003) which is associate for mandatory usage and Wang et al.
(2006) in e-government context and Escobar-Rodrguez and Carvajal-Trujillo (2014)
in e-ticketing.. As a generation Y (young consumers), friends, other people or
reference group might play important roles in influencing behaviour. The opinion of
other people, purchase decisions and looking for approval from other people are
important to them (Atilgan-Inan & Karaca, 2011). This research has proven that
facilitating condition do have an effect on the actual use and consistent with Wang et
al. (2006), Venkatesh et al. (2003), (Nysveen & Pedersen, 2014) and (EscobarRodrguez & Carvajal-Trujillo, 2014). The internet condition plays a major role in this
research. Without good connectivity, student wont be able and easy to navigate
particular website especially during this research. This research has provided the
insight and shed light on developing a process model for venturing e-retail business.
To this day, a limited number of research proposed a process model for e-retail
website development for CMS. The proposed model can be utilized as a guideline for
a new process models in the particular area. Some issues in this are the development
of CMS is not fully controlled by the researcher (as participant observer), the changes
on the CMS by the developer do occur within the timeline project.
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