ABSTRACT
Internet is the primary component of digital media. It helps in creating the connection between the computers which helps in the information processes. Due to the growth in internet the way of buying a product is changed from conventional to e-buying and the modes of getting information is changed. Customers can get all the information and even place the order by sitting in their home. The main objective of the study is the empirical Analysis of Online – Business and Patronage in Michael Okpara University of Agriculture, Umudike (MOUAU): Evidence from Jumia Online marketing company. The specific objectives include measuring the level of awareness of online business in MOUAU; analyzing the Consumer competency of online transaction and evaluating the problems of online business in Nigeria. Primary data were used for the analysis, which was solicited from the respondents. 260 questionnaires were administered to the respondents; but only 250 correctly filled and valid data were used for the analysis. According to the nature of the research objectives it was determined that qualitative research technique would help in understanding the customers’ perceptions of the new way of interacting with the seller thus telling us the scope of E-marketing in the study area. Hence, the study was analyzed with the use of descriptive statistics; such as frequency tables, percentages means and ranks. The level of Awareness of Online Business in Michael Okpara University of Agriculture, Umudike, reveals that 54 (21.6%) and 66 (26.4%) are strongly aware and cognizant, respectively while, 58 (23.2%) and 40 (16%) are not aware and strongly not aware about online business respectively; while only 32 respondents or 12.8% were indifferent about e-marketing. Majority of the respondents knows about Jumia Online e-business. The most outstanding constraints facing the respondents about online business; is the issue of Advance fee fraud/419/Internet scam. The 2nd problem was poor after sales services. It is recommended that the Nigerian governments, at all levels, should sensitize Nigerians on the importance and benefits of adopting the Internet in all facets of our life and not only as a tool of BUSINESS. The ongoing campaign aimed at encouraging Nigerians to adopt e-payment and carry less cash is a step in the right direction. To address the fraud and security challenge, e-tailers should develop a comprehensive privacy policy for their customers on the disclosure of personal information in order to reduce their concerns for security matter.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of Contents vi
List of Tables viii
List of Figures ix
Abstract x
CHAPTER ONE
INTRODUCTION
1.1 Background Information of the Study 1
1.2 Problems Statement 3
1.3 Objective of Study 4
1.4 Research Questions 4
1.5 Research Hypotheses 4
1.6 Scope of Study 5
1.7 Limitations of the Study 5
1.8 Definition of Terms 6
CHAPTER TWO
LITERATURE REVIEW
2.1 Theoretical Literature Review 7
2.1.1 The concept of online Business 7
2.2 Consumer Patronage Behaviour through Social Media Networks 8
2.3 Jumia Online 11
2.4 Empirical Literature Review 12
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 14
3.2 Area of Study 14
3.3 Sources of Data Collection 15
3.4 Population of the Study 15
3.5 Sample Size Determination 15
3.5.1 Primary Sources of Data 15
3.5.2 Secondary Sources of Data 17
3.6 Sampling Technique 17
3.7 Instruments for Data Collection and Method of Investigation 17
3.8 Validity and Reliability of Research Instrument 18
3.9 Method of Data Presentation and Analysis 18
CHAPTER FOUR
RESULTS AND DISCUSSION
4.1 Socio – Economic Characteristics of Respondents’ 19
4.2 Level of Awareness of Online Business in Michael Okpara 22
University of Agriculture, Umudike
4.3 Respondents Competency of Online Business 27
4.4 Problems of Online Business in MOUAU: Case Study of Jumia
Online Business 33
CHAPTER FIVE
SUMMARY, CONCLUSION AND POLICY RECOMMENDATION
5.1 Summary of Findings 39
5.2 Conclusion 40
5.3 Policy Recommendations 40
References
Appendix
LIST OF TABLES
Table Title Page No
Table 4.1 Summary of Socio economic Profile of Respondents 19
Table 4.2 Respondents Knowledge about Online Businesses 22
Table 4.3 Respondents Knowledge about the Use of the Internet 24
Table 4.4 Respondents Level of Awareness of Online Businesses: Case Study of Jumia Online 26
Table 4.5 How Competent are you in Online Business Transactions? 27
Table 4.6. Have you done Online Business before? 28
Table 4.7 Do you have a Debit Card for Online Transaction? 30
Table 4.8: Knowledge about Jumia Online business 30
Table 4.9 Respondents Views on the Level of Patronage of Online
Business 31
Table 4.10 Respondents Views on the Problems of online business
in Nigeria 33
LIST OF FIGURES
Figure Title Page No
Fig 4.1 Respondents Knowledge about Online Businesses in form of
bar graph 23
Fig 4.2 Respondents Knowledge about the Use of the Internet in form
of pie chart 25
Fig 4.3 Respondents Answers’ About Online Business Transaction 29
Fig 4.4 Pie Chart showing Problems/Constraints of Online
Business in MOUAU: Case Study of Jumia Online Business 38
CHAPTER ONE
INTRODUCTION
1.1 Background Information of the Study
Electronic marketing can be defined as a total company effort to communicate about, promote and sell product and services electronically through the internet. With globalization becoming a reality and internet fast driving the “Global Village concept;” online marketing becomes an avenue for the development and enhancement of business in Nigeria and other parts of the world.
According to Opara (2009) internet has consolidated itself as a very powerful platform that has changed the way we do business and the way we communicate. The internet, as no other medium, has given an international or global dimension to the world; it is the universal source of information.
The internet is actually the most democratic of all the mass media and with a very low investment, an individual, group or business can have a web-page on the internet. That way, almost any business can rapidly reach a very large market directly, electronically no matter the size or location of the business (Ghosh, 1998).
According to Hanson (2000) it is the 21stcentury solution for modern businesses, for instance, if anybody has a business idea and cannot afford an office space, all that is needed is a laptop or desktop, an internet access which is becoming cheaper with more convenience access and payment plans. Online payment, a form of emergency, reduces the risk of losing cash in transit, preserves lives and properties often exposed to physical harm associated with volume cash movement, and promote trans-national business which may ultimately lead to world peace (Strauss and Frost, 2006).
According to Strauss (2001) electronic (e) marketing makes more money available for business growth, as reasonable resources is saved on feel and transportation, with an increase in life expectancy; in that, it discourages nepotism as businesses on the internet, especially on the platform of online marketing, helps to maximize returns on marketing companies; and individual marketing companies are exposed to site/blogs of particular demographic and psychographic groups often having verifiable hits/visits.
Some of the major blocks that have sustained this drive remain the banking reform in 2005, a rich media that is largely user generated, devices that are highly portable and wireless broad land connecting between users and internet service provider as well as inter face that are agnostic, where voice, video or data base are connected.
Opera (2008), opined that e-marketing is an avenue for organization seeking for green pasture to realize their dreams; and thus remains a sure link of local business in the country as well as in the international scene.
Electronic marketing has been proven to be a source of empowerment and enablement as it saves cost that could have been incurred in an instance where the internet is not available or accessible. The study examines the level of acceptance and patronage of online business in Michael Okpara University of Agriculture, Umudike.
1.2 Problems Statement
There are some challenges that online business faces in Nigeria today. This can be traced to buyer Information Communication Technology (ICT) incompetency, seller Information Communication Technology (ICT) administrative incompetency and lack of Information Communication Technology (ICT) enabled environment. On-line business is a literate baesd innovation closes the gap and at the same time creates all the necessary utility simultaneously. It is cost effective the market seems efficient because of minimized total cost. This research shall seek to ascertain the level of beverages and trial of online shipping in the study area also; this research shall stand to close the gap in the scope where only few work has been done in this area in Michael Okpara University of Agriculture, Umudike. The reason behind non acceptance and trial of online business is a problem that needs to be investigated and on this premise will this research investigates the performance of online business customer patronage perspective.
Rapid increase in competition which may lead to competitive war, lack of trust and confidence of Nigeria customers to t4ransact online because of the pervasive menaces of yahoo – yahoo frauds, poor network coverage from Nigeria service providers hinder some prospective customer from transacting online.
1.3 Objective of Study
The main objective of this study is to analyze the patronage of online business while other specific objectives are to:
i. Measure the level of awareness of online business in Michael Okpara University of Agriculture
ii. Descriptively analyse the consumer competency of online transaction
iii. Evaluate the problems of online business in Michael Okpara University of Agriculture
1.4 Research Questions
The following research questions will guide this study:
i What is the level of awareness of online business in Michael Okpara University Of Agriculture.
ii What is the level of consu mer competence of online transaction?
iii What are the inherent problems of online business in Michael Okpara University of Agriculture.
1.5 Research Hypotheses
The following Research hypotheses will guide this study
HO1: There is no significant awareness about online business in Michael Okpara University of Agriculture, Umudike.
HO2: Customers’ level of competency in the internet does not affect online transaction
HO3: There are no inherent problems associated with online business in the study area
1.6 Scope of Study
The study scope could be examined from case of the study and conceptual perspectives. The study covers all online shops in Michael Okpara University of Agriculture. Conceptually, the study discusses theoretical concept and viewpoints on electronic marketing and business performance. It includes electronic marketing plan and implementation, e-marketing management, mix and e-marketing challenges in Nigeria. Others are performance measurement and information for performance evaluation.
1.7 Limitations of the Study
The following challenges are likely to be encountered in the course of carrying out this research work. They are as follows:
Knowledge Gap: The researcher encountered a very wide gap of understanding with the respondents. Many respondents did not have the requisite knowledge to understand the content of the questionnaire and essence of the research thereby making them reservation.
Retrieving Questionnaire: Retrieving questionnaire from the respondents during pilot study was a major challenge as many individuals find it difficult in giving their bio data and opinions.
1.8 Definition of Terms
Electronic Marketing: It is all the effort made by an organization to communicate about, promote and sell its products and services electronically through the internet.
Internet: The global network of internet connected network adopted by some individuals and corporate organizations to produce and sell.
Intranet: A network that runs internally in an organization, but uses internet standard such as browsers.
Universal Product Code: The assignment of specific numbers and mark to products in order to facilitate selling activities in an organization.
Website: The virtual location for an organization present on the World Wide Web usually made up of several Web pages.
Electronic Product Marketing: The use of internet to communicate information about sales to promote an organization products and services.
Electronic Promotion Marketing: The use of internet to promote products and service of an organization.
E-pricing: The use of the internet to communicate information about price of an organization and service offerings.
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