The influence of COVID-19 on online shopping behaviour in South Africa

Abstract

The traditional brick-and-mortar stores have had to endure competition in the recent past from the arrival of various shopping channels, particularly the online shopping. Despite the competition enhanced by a proliferation of technology, brick-and-mortar is still the preferred shopping channel. This is largely due to the shopping behaviour, which is generally stable and slow to change unless it is distorted by a catastrophic event. The advent of the corona virus pandemic has seen nations imposing restrictions on gatherings and encouraging moving to online platforms for both social and business interactions as a way to curb transmission of the deadly virus. This major life event has the potential to distort traditional shopping behaviour. Therefore, this study seeks to investigate whether the pandemic has had an influence on online shopping in South Africa. The research aims to examine the different shopping channels and factors that lure customers to those channels paying particular attention to online shopping during the pandemic. Communication, technology, product variety, payment method, delivery, shopping behaviour, COVID-19 and demographics were identified during a literature review as independent factors that influence online shopping. A positivism paradigm, which informed the selection of a quantitative method, was adopted for this research in order to achieve the study’s research objectives. An online questionnaire was designed to collect data and was distributed by the university’s first-year MBA students. The collected data were analysed with the assistance of the university’s statistician. The ethics approval for the study was obtained from the Nelson Mandela University’s Ethics Committee, reference number H21-BES-BS-003. The study draws from the Technology Acceptance Model, Theory of Planned Behaviour and Diffusion of Innovation theories to gain a better understanding on the acceptance of technologies’ influence on online shopping. The study identified that the biographic variables, namely age, income, education, gender and employment status have an influence on online shopping. The relationship between the different independent factors and online shopping was tested using the Exploratory Factor Analysis, Pearson correlations and Chi2 Tests. The factors Payment method, Shopping behaviour, Current impact of COVID-19, Acceptance of technologies and Product variety were found to have a significant influence on online shopping.Based on the research findings, the study formulated recommendations for online businesses in South Africa. The research findings will allow businesses to promptly implement strategies that meet the consumers’ needs and gain competitive advantage. Based on the findings, businesses are urged to improve security on payment methods, leverage technology to offer improved customer experience and primarily market to the 18-39 years employed cohort. These recommendations will assist businesses to retain these online shopping customers post the pandemic.Thesis (MBA) -- Faculty of Business and Economic Sciences, 202