Analysing the Effects of Consumer Perception, Awareness and Trust on Willingness to Adopt Online Shopping: A Case Study of Kampala Central, Uganda

Abstract

This study was conducted in Kampala Central, Kampala district. The purpose of the study was to analyse the effect of customer perception, customer awareness, and customer trust on willingness to adopt online shopping in Uganda. The objective of the study was to assess the effect of customer awareness, perception and trust on customer readiness to accept online shopping. The research methodology for the study was descriptive cross-sectional research design. The sample size was 377 respondents and purposive sampling technique was applied in selecting the respondents who were included in the sample. The researcher used questionnaires to collect data and data was analysed SPSS version 20. The study findings indicated that majority of the respondents (55.28%) were males while females made only 44.72% of the respondents which indicated that the study involved both males and females in equal proportions. Study findings also indicated that there is a positive relationship between customer perception and readiness to accept online shopping (r=.465**, p=0.000<.05). Using regression analysis, customer perception was observed to be the most influential and significant predictor (Beta=.445) of readiness to accept online shopping. Study findings revealed that customer trust has a positive impact on readiness to accept online shopping (r=.654**, p=0.000<.05) Using regression analysis, customer trust was observed to be the second influential and significant predictor (Beta=.225) of readiness to accept online shopping. Customer awareness was the least predictor of readiness to accept online shopping (Beta = .122) among the three variables. Study findings also indicated that there is a relationship between customer awareness and readiness to accept online shopping (r=.413**, p=.000<.05). This revealed that people intend to adopt online shopping since their behavioural intention is positive. The study concluded that customer perception, trust and awareness play a big role in customer’s readiness to accept online shopping. The study recommended that that platforms preparing for online shopping have should position themselves as credible and trustworthy so that they can attract customers who are interested in adopting online shopping. It also recommended that further research should be conducted on culture as a predictor of online shopping.