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Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE. ISBN: 978-1-922069-70-2
Analysis of Demographic Factors, Internet Usage and Online
Shopping for Social Media Users in Saudi Arabia
Najmul Hoda1, Abdul-Rahim Ahmad1 and Amal Melibari2
The Internet usage across the world has increased manifold in the last decade. The trend is
the same for the Arab world including the Kingdom of Saudi Arabia, a country with its own
social and cultural inclinations and heritage. Recent statistics put the number of the Internet
users in the kingdom at more than 18 million and the Internet penetration at more than 65%
of the population in 2014. This study aims to identify the pattern of the Internet usage in the
country. Based on a sample size of 990 respondents recruited through social media across
the Kingdom of Saudi Arabia, the study explores the relationship between the Internet usage
and various demographic, social, economic, and behavioral factors. The results indicate that
the average daily use of the Internet by social media users is significantly correlated to
gender, age, marital status, employment and income but no significant relationship is found
with the education level of users. Further, it was also investigated if there is any significant
relationship between the average daily use of the Internet and online buying behavior. The
results confirm that there is a significant relationship between the Internet usage and the
online shopping habit of the users. The findings on the usage of the Internet by social media
users are of commercial importance to the firms which provide products through online
medium. Indeed, the E-Commerce is expected to foster economic growth, productivity, and
competitiveness of the firms in the country. Additionally, the research will contribute to the
existing literature on E-commerce and attract the interest of researchers mainly in the
disciplines of Marketing and Social Sciences.
JEL: L81, M15, M31
1. Introduction
The Internet is deemed as one of the most significant technological developments in the
recent history. The Internet has significantly affected the personal and professional lives
of people around the world, with both positive and negatives effects (Akman & Mishra,
2010a; Ali, 2014; Davey et al., 2015; Lai & Gwung, 2013). The exponential growth and
proliferation of digital media technologies has revolutionized the global marketplace and
engendered new business models and value propositions, including E-Commerce (EC)
(Ahmad et al., 2015; Velasquez et al., 2009). Consequently, the recent dramatic growth
in EC and the consequent innovative changes in commerce and marketing have also
transformed, and is continuously transforming, the consumer behavior (Ahmad et al.,
2015). This is true with the people in the Kingdom of Saudi Arabia (KSA), which is
evident from not only the rapid expansion in EC but also the significant attention from
media and policy-makers (DESA, 2014; Arab News, 2014a). Indeed, the Internet
penetration has exceeded 65% of the population (Ibid.). Furthermore, the total worth of
EC in KSA exceeded Saudi Riyals or SR 15 billion in 2013 (1 US $ = SR 3.75),
indicating the importance of EC in KSA (Arab News, 2013). Conceivably, in KSA, the
Internet and Web services have been a huge phenomenon. For instance, the Ministry of
Labor in KSA targets providing almost all its services online (DESA, 2014; Arab News,
2014b).
_________________________________________________
1
College of Business, Umm Al-Qura University, Makkah Al-Mukarramah, Saudi Arabia,
Email: najmulhoda19@hotmail.com, anahmad@uqu.edu.sa
2
British English Institute, Makkah Al-Mukarramah, Saudi Arabia, Email: amal.melibari@gmail.com
Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE. ISBN: 978-1-922069-70-2
Incidentally, the factors affecting the EC behavior of consumers in various cultures is
well-studied in the literature. However, there is a relative dearth of studies focusing on
the KSA context. Some studies reporting effect on EC by various non-demographic
factors intrinsic to EC within the context of KSA can be found elsewhere (Ahmad et al.,
2012, 2015). Nevertheless, various demographic factors extrinsic to EC are also
deemed important determinants in EC. This paper reports the findings of a survey
concerning the impact such social, demographic, economic, and behavioral factors as
gender, age, income, marital status, education level, and employment status may have
on the Internet usage of social media users in KSA.
It is important to assess the extent of differences and their underlying causes because
access to the Internet improves opportunities for education, employment and civil
engagement (Akman & Mishra, 2010a; Ono & Zavodny, 2007). Various individualistic
and demographic factors have been shown related to the Internet usage in various
cultures and countries (Akman & Mishra, 2010a; Ali, 2014; Lai & Gwung, 2013; Li &
Kirkup, 2007; Mark & Ganzach, 2014). Despite noteworthy attention to the Internet
usage, empirical research focusing on it within the KSA context is still relatively sparse.
Earlier e-commerce studies indicate that research done for given groups and cultures
may not be applicable to other groups or cultures (Akman & Mishra, 2010a, 2010b).
This may be a result of a variety of social, cultural and economic variances (Sanayei,
2008). Therefore, research on the e-commerce attitude of EC user groups in KSA may
inform EC business strategies. This paper reports the findings of a study conducted to
bridge this gap within the KSA context. As a high-income and high-literacy developing
country with a large land area and relatively sparse population, KSA is a potentially
large, dynamic, and emerging market economy strategically located between Asia,
Africa, and Europe. A major change on the economic front is the acquisition of full
member status of World Trade Organization (WTO) in 2005.
More specifically, the study was conducted so as to investigate the predictive impact of
selected socio-demographic (gender and income) and behavioral factors (computer
experience and average daily use of the Internet) on EC attitude of social media user in
KSA. The rest of the paper is organized as follows. The subsequent section provides a
review of the relevant literature. This is followed by the research methodology, model,
and hypotheses. The results of the analysis are then presented and discussed. The last
section of the paper provides conclusion as well as some interesting future research
directions.
2. Literature Review
The Internet Usage, as measured by Average Daily Use of the Internet (ADU), has been
shown to significantly affect EC (Zhang, 2005). Various personality and demographic
factors have been shown to influence the Internet usage in various cultures and
countries (Akman & Mishra, 2010a; Ali, 2014; Lai & Gwung, 2013; Li & Kirkup, 2007;
Mark & Ganzach, 2014). The premise is that various demographic attributes influence
actions by individuals before they engage in a specific behaviour (Ajzen & Fishbein,
1980)
Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE. ISBN: 978-1-922069-70-2
Gender (GEN) has frequently been identified as an important variable in the use of
Information and Communications Technologies (ICT). Indeed, gender differences were
shown to have a significant effect on ICT usage in various studies (e.g. Levy, 2002;
Sayan et al., 2004). Studies have also demonstrated gender differences in the Internet
usage (Coniglio , 2012; Helsper, 2010a; Zhang, 2005). Moreover, studies have
demonstrated that the gender difference in the Internet usage differs in regional,
national, and cultural contexts (Yang & Lester, 2005). Moreover, the association
between GEN and ADU or EC has been explored in the literature (Ige, 2004; Jackson et
al., 2008; Smith et al., 2008). Some research has indicated that gender has a significant
effect on EC (Hwang et al., 2006; Koyuncu and Lien, 2003). The gender differences in
ADU and EC may arise due to preferences for shopping styles or attitudes toward
computers and the Internet (Yang & Lester, 2005). Conceivably, the Internet usage has
always been one of the most important indicators for EC (Yang & Lester, 2005).
Consequently, we deem association between gender and the Internet usage worth
investigating in the KSA context.
Age (AGE) is also shown to significantly affect access to ICT (Levy, 2002; Helsper,
2010; Zhang, 2005). However, some studies conducted in specific cultural contexts
have indicated that there might not be an association between AGE and ADU (Akman,
2010b). Testing this association in the KSA context is interesting direction.
Marital Status (MAT) has been hypothesized to have some influence on ADU (Helsper,
2010). However, studies do seem to show a correlation in various cultures (Taylor et al.,
2003; Yi, 2008). We hypothesize that due cultural dispositions MAT may have some
influence on ADU in KSA.
Education Level (EDU) is also shown to significantly affect access to ICT (Levy, 2002).
Furthermore, some studies have suggested that EDU may have some association with
ADU (Simicevic, 2012).
Employment Status (EMP) has been shown to correlate with the Internet usage as well
as with the ICT usage (Helsper, 2010). It is often hypothesized that a better
employment status would lead to higher ADU and EC due better financial conditions.
However, testing this correlation within the KSA context is an interesting direction and
tackled in this research.
Income Level (INC) is also shown to significantly affect access to ICT (Levy, 2002; Shiu
& Downson, 2002, UPAN, 2005). However, the literature is lacking evidence that clearly
links INC with ADU (Akman, 2010a; Forsythe & Shi, 2003; Lowe, 2003; Wong, 2003).
Nevertheless, the conventional logic suggests that people with a higher income would
have higher ADU because of the time saving feature of the EC and the Internet (Akhter,
2003). However, the cultural context in KSA suggest that INC should not affect ADU
and EC, as visiting shopping malls is a major recreational activity in the evenings. Due
to these competing effects of various aspects of the conventional wisdom on the effect
of INC on ADU, we considered including INC in our study as worthwhile.
Frequency of Online Purchases (FREQ), as measured by number of times online
purchases has been made during the past one year, is considered to be an important
Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE. ISBN: 978-1-922069-70-2
indicator of inclination towards EC by an individual (Helsper, 2010). Indeed, it is
hypothesized that the higher ADU should result in a higher FREQ. However, testing this
within the KSA context is a really interesting research question. Similarly, the pattern of
shopping method also indicates the buying behavior (SPAT) of the social media users
especially with respect to their internet usage. It is of significance to study the
relationship between internet usage and the choice of online shopping.
3. Research Methodology
The research design was basically exploratory that tries to study the online activity of
the social media users and their tendency to shop online. A questionnaire was prepared
to collect the responses regarding the demography, social and economic profile of the
sampled respondents. Further the questionnaire included close-ended questions
regarding the online activity and shopping pattern of the respondents. These included
the amount of time spent on internet daily, method of shopping and number of online
transaction in the last one year. The items in the questionnaire were validated using the
opinions of a focus group comprising of researchers and professionals. The questions
were written in both Arabic and English languages.
The final questionnaire (designed in google spreadsheet) was posted on various social
media namely Facebook, LinkedIn, Twitter and through emails to personal contacts.
The sampling method was a type of Snowball where the respondents further refer to
other respondents. As a result, a total of 1013 filled responses were received after one
month of posting the questionnaire. The number of valid responses considered for
further analysis was found to be 990. The data-set was analysed mainly for the
associations between various factors. For this purpose, chi-square test was employed
to test if significant association exists between two variables. SPSS Version 20.0 was
used for carrying out the statistical operations.
4. Results
In this research, we focused on associations between the demographic factors and the
internet usage defined by the average daily use of internet (ADU). Further, the
association with the average daily use and online shopping was also studied. The
description of the data-set is summarized in Table 1.
The sample comprised of 81% male respondents and 19% female respondents. The
majority of respondents belonged to the age group 18-35 years. The percentage of
students (44) was the highest among the respondents and 72% were single. The
monthly income of the respondents was below SR 3000 for 56% of the respondents.
Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE. ISBN: 978-1-922069-70-2
Table 1 Descriptive Statistics
Item
Gender (GEN)
Valid
N = 990
%
805
185
81
19
Age (AGE)
N = 985
%
Below 18
18-25
26-35
36-45
46 & Above
92
508
310
65
10
9
52
31
7
1
N = 989
%
147
161
208
440
33
15
16
21
44
4
Male
Female
Employment (EMP)
Unemployed
Private jobs
Government jobs
Students
Business
4.1
Item
Marital Status
(MAT)
Single
Married
Education (EDU)
Valid
N = 981
%
704
277
72
28
N = 987
%
52
238
635
62
5
24
64
7
N = 989
%
235
318
133
105
85
50
63
24
32
13
11
9
5
6
Below Secondary
Secondary
Graduate
Other
Monthly Income
(INC)
No Income
Below 3000
3001-6000
6001-9000
9001-12000
12001-15000
Above 15000
Relationship between Demographic Factors and Internet Usage
It was hypothesized that the demographic factors may be related to the internet usage
defined by the average daily use of the internet by social media users for this study. The
chi-square values for each relationship are mentioned in Table 2. The acceptance level
for the null hypothesis is 0.05 below which it is rejected implying that there is a
relationship between the variables. The chi-square values for all the associations
except between the variables EDU and ADU are found to be less than the acceptance
value of 0.05. Therefore all the null hypotheses are rejected except the one regarding
education and ADU. This implies that the alternative hypotheses that there are
relationships between other demographic factors and ADU are accepted for the five
demographic factors.
Table 2 Summary of Associations
Associations
Pearson
Chi-Square
Value
Demographic Factors and Internet Usage
(1) GEN * ADU
9.449
(2) AGE * ADU
27.445
Likelihood
Ratio
df
Asymt. Value
Sig.
(2-sided)
3
12
0.024 9.438 3
0.007 35.58 12
7
0.0001 31.13 3
8
0.168 12.74 9
(3) MAT * ADU
26.323
3
(4) EDU * ADU
12.882
9
df
Asymt.
Sig.
(2sided)
Linear-by-Linear
Association
Value
0.024 0.894
0.000 9.178
1
0.000 19.818
1
0.175 2.681
df
Asymt.
Sig.
(2-sided)
1
1
0.344
0.002
1
0.0001
1
0.102
Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE. ISBN: 978-1-922069-70-2
(5) EMP * ADU
50.099
12
(6) INC * ADU
53.343
18
(7) ADU * FREQ
57.639
12
(8) ADU and SPAT
71.016
6
0.0001 51.98 12 0.000 0.940
3
1
0.0001 54.52 18 0.000 23.223
6
1
1
0.332
1
0.0001
0.0001 50.57 12 0.000 16.937
5
1
0.0001 59.05 6 0.000 19.641
5
1
1
0.0001
1
0.0001
Internet Usage and Online Shopping
α = 0.05
4.2
Relationship between Internet Usage and Online Buying Behavior
This study also tried to explore the relationship between the internet usage and the
shopping behavior of the social media users. The two hypotheses regarding these
associations were also tested using Chi-square method. The acceptance level was
again determined at 0.05 below which the null hypotheses would be rejected. The
values for both associations were found to be less than 0.0001 (see Table 2) implying
that the null hypotheses are rejected. Therefore, there are relationships between ADU
and Online Shopping.
4.3
Modeling the Relationship
Based on the above results, the researchers tried to develop a theoretical framework
that may be of significance in predicting the online buying behavior of social media
users. This framework provides a direction for future research in this area. For a greater
generalizability and application to the E-Commerce in general, diverse segments within
the population of internet users may be included. This study targeted the social media
users only but applying the research to the broader population may help achieve more
conclusive results.
GENDER
AGE
MARITAL
STATUS
MONTHLY
INCOME
AVERAGE
DAILY USE OF
INTERNET
FREQUENCY
OF ONLINE
SHOPPING
CHOICE OF
ONLINE
SHOPPING
EMPLOYMENT
Demographic Factors
Online Buying Behavior
Figure 1: A Predictive Model of Online Buying based on the relationship between Demographic Factors
and Internet Usage
Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE. ISBN: 978-1-922069-70-2
5. Discussions and Conclusions
The digital economy is mainly marked by the existence of an active population of
internet users. Saudi Arabia has been no exception in terms of internet penetration. As
per the reports, the number of internet users rose to 18.3 million users in 2014. This
research focused on the internet usage of social media users in Saudi Arabia and the
subsequent effect on E-Commerce. Though the results of this study cannot be termed
as final and conclusive, nonetheless, there are strong indications of the relationships
existing between demographic factors, internet usage and online shopping. From
demographic perspective, the average daily use of internet has direct relationship with
gender, age, marital status, monthly income and employment. These findings support
the earlier studies conducted in other countries.
This research found that the internet usage and education level are not correlated which
does not support the findings of other studies conducted in other countries. However on
other dimensions, this study found similar results. The Pew Research (2014)
(http://www.pewinternet.org/data-trend/internet-use/latest-stats/) that analyzes the
internet usage for USA showed similar results regarding the demographic profile of the
internet users as in KSA. Though the former study also reports a variation in the
average daily Internet usage based on age, the two variables (age and average daily
use of Internet) did not show any significant correlation for KSA. This finding provides a
pertinent direction for future research. The education and internet usage relationship
need to be tested on a cross-section of sample.
E-commerce has emerged as a strong player in the economy of the country. The
government support to E-commerce in the form of strong Information Communication
Technology (ICT) infrastructure suggests that the growth of E-commerce will continue at
a greater pace. Therefore, research on the various aspects of E-commerce is strongly
required to address the overall needs of the stakeholders. This study analyzes the use
of E-commerce by social media users in Saudi Arabia and this is a limitation. The
companies need more details on the usage and needs of the population in Saudi
Arabia. This study found that there are relationships between the internet usage and
both the choice of shopping method as well as the frequency of online buying. The
companies can strategize better for promoting online shopping to social media users.
The future research may study the buying pattern for different categories of social
media users. Further, the type of goods purchased through online mode is also an
important area of research.
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