Online Shopping in Oman: Obstacles and Challenges

Online Shopping in Oman: Obstacles and Challenges
How can online shopping compete with in-store shopping in Oman and how can e-retailers
convince customers to shop online?

Master of Business Administration Thesis

By
Lina Abou Chahla

A thesis submitted in partial fulfillment of the requirements for the degree of Master of
Business Administration (MBA) of the Robert Kennedy College/University of Wales
(October 23, 2013)
Online Shopping in Oman: Obstacles and Challenges Page 1

Abstract

Online shopping has flourished in the developed world and revolutionized the way people
shop. The developing nations lag far behind in this regard, although their governments have
taken several initiatives to encourage e-commerce. Oman is one of the countries that have an
advanced technological infrastructure and an active Internet user base. The internet usage
penetration in relation to population has increased dramatically in the past few years. However,
online shopping is yet to rise significantly considering the fact that people are reluctant to
purchase through internet. Nonetheless, not much research material is available in this regard
towards the factors that hamper online shopping in Oman. Thus, the thesis aims to study the
factors that act as barriers to the development of online shopping in Oman. It also attempts to
study consumers perceptions and attitudes towards online shopping through a combination of
quantitative and qualitative techniques. While the former was conducted using questionnaire
distributed via email and in person, the latter was collected through interviews, targeting internet
users. An exploration of the current status of online shopping in Oman was also a prominent pat
of this research which threw up potential insights on overcoming the obstacles and challenges
that are hindering its growth.

Keywords: Online Shopping, Risk Perception, Online Shopping Experience, Consumer
Confidence, e-retailers.

Table of Contents
List of Abbreviations 6
Statement of originality 7
Acknowledgement 7
Chapter 1 Introduction
1.1 Introduction 8
1.2 Background 8
1.3 Problem Definition 10
1.4 Motivations for Research 10
1.5 Scope of Study 11
1.6 Research Questions 12
1.7 Research Objectives 12
1.8 Method Outline 13
1.9 Thesis Overview 14
Chapter 2 Literature Review
2.1 Introduction 16
2.2 The state of E-commerce: Online shopping trends 17
2.2.1 Internet Usage and Growth in the World 17
2.2.2 Internet Usage and Growth in Oman 18
2.2.3 Online Shopping Growth 20
2.2.4 Online Shopping Trends in Oman 21
2.3 Factors Hindering Online Shopping Growth 23
2.3.1 Privacy and Security Concerns 23
2.3.2 Dominate Cash Culture 24
2.3.3 Unreliable Delivery 25
2.3.4 Lack of Individual Home Address 26
2.3.5 Consumer Cognition 26
2.4 Consumer Behavior in Mall Environment 28

2.5 Lack of Local Shopping Portals 29
2.6 Absence of Multichannel Retailing 30
2.7 Conclusion 31
Chapter 3 Methodology
3.1 Introduction 32
3.2 Problem Statement 32
3.3 Research Objective 33
3.4 Research Questions 33
3.5 Research Approach 34
3.6 Research Design 35
3.7 Data Sampling 37
3.7.1 Research Population 37
3.7.2 Sampling Techniques 37
3.7.3 Sample Size 38
3.8 Data Collection 38
3.8.1 Methods of Data collection 38
3.8.2 Data Collection Instruments 39
3.8.3 Limitation 40
3.8.4 Questionnaire 41
3.8.4.1 Questionnaire Testing 41
3.8.4.2 Questionnaire Administration 41
3.8.4.3 Questionnaire Design 42
3.8.4.3.1 Questionnaire Sections 43
3.8.5 Interviews 44
3.8.5.1 Interview Sections 44
3.8.6 Ethical Consideration 45
3.9 Data Analysis Method 46
3.9.1 Quantitative Data Analysis 46
3.9.1.1 Types of Data 46
3.9.2 Qualitative Data Analysis 47

3.10 Conclusion 48
Chapter 4 Analysis and Findings
4.1 Introduction 49
4.2 Quantitative Data Analysis 49
4.2.1 Data Tabulation 49
4.2.2 Questionnaire Responses 50
4.2.3 Detailed Analysis of Questionnaire Results 51
4.3 Qualitative Data Analysis 62
4.3.1 Detailed Analysis of Interview Results 62
4.4 Conclusion 66
Chapter 5 Conclusion, Limitations and Recommendations
5.1 Introduction 67
5.2 Conclusion 67
5.3 Limitations of the Study 71
5.4 Recommendations 72
5.5 Personal Thoughts 72
5.6 Further Researches 74
Appendix A 75
Appendix B 79
References 80

List of Tables

Table 1 Internet Usage and Growth in the World 18
Table 2 Middle East Internet Users and Population Statistics 19
Table 3 Oman Internet Usage Growth and Population Statistics 20
Table 4 Demographics scale 50


List of Figures

Figure 1 Percentages of People Who Have Shopped Online by Area 20
Figure 2 Usability of Internet 51
Figure 3 Internet Usage on a Daily Basis 52
Figure 4 Purpose for Using the Internet 52
Figure 5 Factors hindering Online Shopping Growth 54
Figure 6 Convenience and Risk Perception 55
Figure 7 Spending Intentions - Single Purchase 56
Figure 8 Spending Intentions per Year 56
Figure 9 Payment Methods Preferred 57
Figure 10 Respondents Gender 58
Figure 11 Male Buyers VS. Non-Buyers 59
Figure 12 Female Buyers VS. Non-Buyers 59
Figure 13 Respondents Age Groups 59
Figure 14 Online Buyers VS. Non-Buyers/Age Wise 59
Figure 15 Participants Educational Level 60
Figure 16 Online Buyers vs. Non-Buyers /Educational Level wise 60
Figure 17 Participants Employment Status 61
Figure 18 Online Buyers vs. Non-Buyers / Employment Status Wise 61
Figure 19 Respondents Income 61
Figure 20 Online Buyers vs. Non-Buyers /Income Wise 61


List of Abbreviations
ATM: Automated Teller Machine
B2C: Business to Consumer
COD: Cash on Delivery
CBO: Central Bank of Oman
E-business: Electronic Business
E-Commerce: Electronic Commerce
E-Retailer: Electronic Retailer
E-Service: Electronic Service
MENA: Middle East and North Africa


Statement of originality
This research is the final dissertation for Master of Business Administration (MBA) at Robert
Kennedy College/University of Wales. This is to certify that the content of this thesis is my own
work and that all the assistance received in preparing this thesis and sources have been
acknowledged.
Lina Abou Chahla
Muscat - Oman
October, 2013

Acknowledgement
Foremost, I would like to express my sincere gratitude to my thesis advisor Dr. M.S.Chagla for
his invaluable support, guidance and patience. His insightful comments helped me in all the time
of research and writing of this thesis.
In addition, I would like to thank all the participants for sparing the time to partake in the
questionnaire and the interview.
Finally, I would like to express my love and appreciation to Lama Al Chamaa for her support
and encouragement during this long journey. Also I thank my family and friends for their help in
distributing the questionnaire and for their encouragement throughout the course of this thesis.


Chapter One
I ntroduction

1.1 Introduction
This chapter starts with a background on online shopping followed by the definition of problem.
It discusses the motivation for research and the scope of study besides the research questions and
research objectives. Moreover, it looks at the method outline and finally presents the thesis
overview.

1.2 Background
Online shopping is becoming increasingly popular, where more and more consumers around the
world are getting connected and comfortable with the online shopping experience. An increasing
number of retailers are now seeking growth through e-commerce. Businessmen are no longer
confined to their city or region. E-commerce has established itself in the developed countries;
however it is yet to make inroads in most of the developing countries (Dholakia, 2005).
In the U.S., Forrester Research shows that $248.7 billion online sales are expected by 2014; an
annual growth of 10 % (wwwmetrics, 2009). In Western Europe sales are expected to reach 14
billion Euros ($155.7 billion), a growth of 11 % annually (ibid). Furthermore, the head of

Alibaba Group's strategy expects that large Chinese e-commerce transactions hosted by its main
shopping websites to triple to 3 trillion Yuan (US$473 billion) over the next five to seven years,
as the country's online retail market continues to expand (Osawa, 2012).
B2C (Business to Consumer) e-commerce sales in MENA (Middle East and North Africa) region
are expected to reach an estimated $15 billion in 2015, where UAE has the highest percentage of
internet users who shop online, compared to other countries in the Middle East (Dalakian, 2012).
However, in Oman, online shopping has not progressed at a similar pace. As of 2010, B2C e-
commerce sales reached only US$ 70 million (ibid).
According to a research published last September by CBRE (CBRE, 2012), the amount of global
online shopping is set to double in two years time, and 63% of retailers will convert into fully
integrated multichannel businesses within the same period. Despite postal services and other
factors hindering the fast growth of online shopping in the Middle East, two-thirds of
international retailers see their customers making orders online and picking up the items in stores
over the next two years, where multichannel shopping will support physical shopping, not
compete with it (Middle East Oil.net, 2012).
The Government of Sultanate of Oman has taken several initiatives. It has established a reliable
IT infrastructure and has provided incentives to the IT and telecommunications companies. In
2011, it adopted an e-governance strategy. Its main mission is to facilitate and lead government
e-service implementations thereby enhancing the efficiency of public sector using modern
technology and creating a digitally-enabled society in Oman (Omanuna, 2013).


Many local retailers have initiated their businesses online. However, none of them has gained
wide popularity. Such e-retailers have faced many obstacles and challenges which drove many of
them to change their websites from online shopping portal to that of a portal giving information
about their products. Unlike other parts of the world, online shopping is still in its infant stage in
Oman, where consumers are still reluctant to purchase online.

1.3 Problem Definition
Online shopping is yet to become popular in Oman, where consumers are immersed in an
established mall culture that has become a focal point for everyday life and a favorable place for
social interaction amongst the country's growing youth population. Physical proximity is one of
the factors that contribute to this fact as most shopping malls and stores are located in the prime
areas of towns, closer to residential places offering wider parking spaces. Moreover, these
shopping malls are open seven days a week and more than twelve hours a day. Local retailers
have failed considerably enough to attract consumers and make them adopt online shopping as
additional dimension to modern shopping. Omanis are still reluctant to purchase online from
global e-retailers for various reasons, which forms the crux of this thesis.

1.4 Motivations for Research
The idea of researching on this domain was born due to personal convictions when this
researcher decided to start an online store to promote current business activities. It was found
that online store would complement the physical showroom in reaching out to new customers

and offering better services. However, the advantages of the phenomenon of online shopping
enjoyed by developed countries, havent yet convinced the consumers in Oman. This study is
one such attempt to identify reasons behind the slow progress of online shopping in Oman. It
analyzes the various factors that act as barriers to growth and are believed to have an impact on
B2C e-commerce adoption in Oman. This thesis provides an understanding of the current
situation of online shopping in Oman. It gives insights about what drives people to shopping
carts and what puts them off. The study hopes to guide e-retailers on how to break down the
barriers to online shopping in Oman and how to gain consumers confidence and trust. This
dissertation will assist in enhancing online shopping experience in Oman and provides valuable
information about the current status of online shopping in the Sultanate.

1.5 Scope of Study
The scope of the study is to understand consumers needs and expectations related to the online
shopping experience. It explains consumers expectations from online shopping portals and what
makes online shopping a more convenient option over in-store purchasing option. This study
intends to find out why consumers are refraining from purchasing products over the internet, and
attempts to understand their attitudes and motivations to shop online. Due to the absence of any
reliable study about online shopping in Oman, literature is sought from neighboring countries
such as UAE, as the lifestyles and cultures are similar. However, the focus of the study will be in
Oman by collecting and analyzing data from Omanis and providing recommendations for Oman
retail market.


1.6 Research Questions
a) Primary Research Question:
What are the factors that hinder the growth of online shopping in Oman?
- The questionnaire survey and interview questions contribute to answering this major
question. Nevertheless, review of the literature is critical to complement the findings
of the primary research.
b) Secondary Research Questions:
1- What are the factors that act as barriers to online shopping in Oman?
- The data collected from questionnaire survey and interview questions explores these
factors.
2- What is the impact of online payment methods on consumers buying decision?
- The questionnaire survey and interview questions seek answers to this research
question. In addition, literature review provides insights in answering this question.
3- How can local e-retailers meet customers expectations and enhance online
shopping experience in Oman?
- The interviews and the literature review contribute to answering this question.

1.7 Research Objectives
The research objectives are concerned with determining the factors that are hindering the
progress of online shopping in Oman. This study focuses on the variables that are influencing
consumers perceptions towards online shopping that are found in researches done in various

countries. The selection of these variables further took into account the local culture and life
style in Oman that influence consumers buying decision.
In order to achieve the main objectives, this study investigates:
Factors influencing consumers decisions towards online shopping
Risk perception
Influence of online payment options
Online shopping experience
This work identifies these variables and seeks ways to rectify them. It provides recommendations
on how to improve online shopping experience in Oman based on questionnaire survey and
interview findings.

1.8 Method Outline
The dissertation research consists of primary and secondary research. Since the main objective of
this study is to determine factors that contribute to the slow growth of online shopping in Oman,
it is first necessary to study the literature to understand the current situation regarding online
shopping behavior in the Middle East and Oman in particular. The primary research approach
will be mainly of a quantitative nature. In addition, qualitative questions will be asked through
interviews in order to help in providing deeper insights while interpreting the quantitative results.
In the quantitative approach the data is collected using a standard questionnaire with close ended
questions. The questionnaires are distributed to Omanis and expatriates internet users, as

expatriates account for 19% of the total population (index mundi, 2012). The questionnaires are
distributed to all classes of the society.
Qualitative data is collected through interviews in which respondents were asked open ended
questions. This approach helps to provide rich data that responses to close ended questions may
not be able to achieve. The secondary research is based on various resources that have addressed
online shopping such as internet sources, journals and newspapers. As there is barely any
information, reports or articles about online shopping in Oman, the secondary research is based
on resources from the Middle East, especially neighboring countries such as UAE, which
exhibits similar culture and life style. The secondary data is helpful in designing subsequent
primary research and provides a baseline with which to compare primary data collection results.
Simple statistical analysis method is used to evaluate the data collected from primary research
using Microsoft Excel. The analysis focuses on the comparative evaluation of various factors that
influence the growth of online shopping in Oman.

1.9 Thesis Overview
This thesis consists of five chapters:
- Chapter 1
Introduction: Its purpose is to provide a general overview and structure of the thesis.
- Chapter 2
Literature Review: This chapter addresses the key issues related to online shopping in
Oman. It shows theories and recent researches related to the study. This chapter discusses

factors hindering online growth in Oman and explains the state of e-commerce and online
shopping. Furthermore, it discusses consumer behavior in mall environment and the lack
of local shopping portals. Additionally, it describes the absence of multichannel retailing
in the Sultanate.
- Chapter 3
Methodology: This chapter dwells on the problem statement followed by research
questions. It also explains the research strategy followed by the research design. Chapter
three discusses the sampling techniques used in collecting the data.
- Chapter 4
Data Analysis and findings: In this chapter, the research data is analyzed. It discusses the
techniques used in the analysis and presents the findings that were drawn from the
analysis of the collected data. In addition, this chapter analyzes the collected data in the
context of the themes that have arisen from the literature review.
- Chapter 5
Conclusion, Limitations and Recommendations: This chapter presents the conclusions
based on the findings and assumptions discussed throughout the study. Chapter 5
attempts to answer the research questions and objectives. Moreover, it states the
limitations of the study. It provides recommendations on how to improve online shopping
experience based on questionnaire and interview findings and states the value of the
research. Finally it provides personal thoughts as the motivations for research are
personal. Nevertheless, the outcome of this research will be of great benefit to local
retailers.

CHAPTER TWO
LI TERATURE REVI EW

2.1 Introduction
This chapter includes a review of available literature on factors that are hindering the growth of
online shopping in Oman. It focuses on consumers attitudes towards online shopping and
identifies what drives people to shopping carts and what puts them off. Absence of any reliable
study on consumers' online buying behavior and online shopping in Oman, makes this research a
more significant one. As Oman is located in the Middle East, the researcher considered
researches and reports about the MENA region (Middle East and North Africa) as reliable
sources. This literature review includes references to scholarly literature available on the barriers
as to why the Sultanate of Oman has not progressed the way it should have in terms of e-
shopping and e-commerce, and how its essentially cautious and conservative business approach
could be one of the reasons for the failure of e-commerce to gain much ground in the sultanate.
This chapter describes the state of e-commerce in Oman. It discusses the factors affecting online
shopping growth in the Sultanate. The literature review studies the shopping behavior in mall
environment and describes the lack of local shopping portals. Then, it explains the absence of
multichannel retailing (physical store and online store) in Oman.


2.2 The state of E-commerce: Online shopping trends
Online shopping is becoming increasingly popular around the globe for a variety of reasons.
Some of these benefits include convenience, comparison shopping capabilities and express
shipping options. Indeed, the high internet penetration has contributed to the high-growth of
online shopping as well.

2.2.1 Internet Usage and Growth in the World
It has become obvious that the internet has changed our lives in the way we work, shop, search
for information and communicate, and meet people, for instance. Two billion people are now
connected to the internet, and this number is growing by 200 million each year (Mckinsey,
2011). Nevertheless, the growth of the internet has a great impact on the world economy.
The growth of Internet utilization in the Middle East comes second in the world with 2,639.9%
growth between year 2000 and 2012 (see table 1). These figures clearly show that the growth of
internet usage in the Middle East is one of the highest in the world. As Oman being part of the
Middle East, nevertheless, these figures have positive effects on the growth of e-commerce in
Oman and the Middle East in general.


Table 1: Internet Usage and Growth in the World

Source: Internet World Stats-www.internetworldstats.com/stats.htm

2.2.2 Internet Usage and Growth in Oman
The internet usage penetration in relation to population in Oman has increased dramatically in
the past decade, where it places Oman with the top five countries in the Middle East which have
the highest growth of internet usage. Oman has an advanced technological infrastructure to
support e-commerce and an active Internet user base. Many telecommunication companies are
providing a high-speed broadband Internet access to the major cities. However, the internet
service in the rural areas is still weak. The Internet World Stats as of June 2012, shows 68.8 %
of the population (about 2.1 million people) are connected to the Internet (table 2), where more
than half of Omani households own a PC. According to The World Bank (The World Bank,
2011), Oman income level is high, where its GDP is $71.78 billion and of total population 2.846
million. Omans GNI per capita as of 2010 is US$ 19,260 (ibid).


Table 2: Middle East Internet Users and Population Statistics


The growth of internet usage in Oman has been phenomenal in the past three years. As shown in
table 3, the percentage has increased from 16.3% in 2009 to 68.8% in 2012. However, the trend
of shopping online seems to be slowly catching up in Oman. UAE has the highest percentage of
internet users who shop online, compared to other countries in the Middle East. In 2010, B2C
(Business-to-consumer) e-commerce sales growth in the UAE was US $2 billion compared to
only US $70million in Oman (Dalakian, 2012).


Table 3: Oman Internet Usage Growth and Population Statistics


2.2.3 Online Shopping Growth
Throughout the world online buying has grown exponentially. A country's prospects for online
retail success are closely related to the number of internet users and how comfortable are they in
purchasing products online. Among internet users, the highest online shopping percentage is
found in Asia Pacific, where 87% of individuals with internet access shop online. However, in
the Middle East, only 53% make online purchases as shown in figure 1. Cultural and educational
factors could be reasons behind the slow growth of online shopping in the Middle East.

Figure 1: Percentages of People Who Have Shopped Online by Area
Source: Global Trends in Online Shopping: A Nielsen Global Report June2010
87%
85%
83%
81%
53%
Asia Pacific Europe North America South America Middle East
Percentage of People Who Have
Shopped Online by Area

2.2.4 Online Shopping Trends in Oman
Oman's online market remains small at $111 million as of 2012 (AtKearney, 2012). Promoters of
e-commerce sites hope that the increase in internet penetration, from 16% to 68% in the last
three years is likely to further boost their business by targeting Omans growing youth
population. The median age of Oman population is 24years, where 65.7% of Omans population
is between age 15 and 64 (index Mundi, 2012).
The trend of shopping online is slowly catching up in Oman where there are a few attempts in
adopting multichannel strategy. However, issues related to online payments and postal services
forced some retailers to change their sites from online shopping portal to that of a portal giving
information about products. For instance, in 2010, The Khimji Ramdas Group, has diversified
businesses, have changed their website www.khimjishopping.com from online shopping portal,
to that of a portal giving information about their products. Recently, few companies have
launched online shopping portals for their customers in Oman and started their business online.
Focusing mainly on youngsters in Muscat as they are the ones who are mostly online and want to
buy new products, these companies are trying to overcome the obstacles that faced Kimji
Ramdas, and are striving to succeed in their new field. Some of these portals are:
- www.alatoolmuscat.com: went live September 2012. It comes out with different deals
every day on electronic items, hotels, restaurants, spas and other services. The business
model of this site is to connect sellers and buyers and eliminate middlemen. Their
revenues mainly come in the form of commission from sellers.

- www.muscat360.com: The site went live on September 2012. This online portal sells
furniture where it connects sellers and buyers and eliminates mediators. On an average, it
gets 200 visitors a day, though only a few of them actually buy things.
- eplus.panasonic.om: On December 2012 Panasonic launched an online shopping portal
for its customers in Oman, a first-of-its-kind initiative by an electronics company in the
country. Purchased products would be delivered within 72 hours of ordering and carry a
one year warranty.
- www.Pizzahut.om: Pizza Hut launched its online service on December 2012. It offers
customers who buy online 15% off. It also offers cash on delivery where payment is
made at the time of delivery.
These sites are still not known widely in Oman and most of them have limited products.
Furthermore, only few of the customers who visit these sites actually buy from them. On the
contrary, Omanis have embraced the e-ticketing concept that has been offered through the
national carrier of the Sultanate of Oman, Oman Air, at a faster pace than other online products
and services.
- www.Omanair.com: It was launched in 2007 offering its frequent flyer program
Sindbad. At present, it offers online booking, frequent flyer program, holidays
packages, online check-in and special offers.


2.3 Factors Hindering Online Shopping Growth

2.3.1 Privacy and Security Concerns
Consumer concerns on security and privacy issues, in the process of online transactions, are
major obstacles in the development of e-commerce. As a correct choice can only be identified in
the future, consumers are forced to deal with uncertainty, or take a risk with their choices
(Taylor, 1974). Vijayasarathy & Jones (2000) state that perceived risk influenced both attitudes
toward online shopping and intention to shop online.
Although many banks in Oman offer attractive schemes to purchase credit cards, and encourage
the use of it with less interest and more products, the majority of Omani consumers remain
reluctant to use their credit cards and give their financial details online.
According to a PaymentOne survey conducted by Javelin Strategy & Research released in
December 2011, the majority of active online shoppers are concerned that their credit card data
would be intercepted or that unauthorized parties would access the information saved in the
merchants database (Leggat, 2011). A study has revealed that 43% of internet users in the
Middle East have been put off buying products online because they do not trust online payment
systems (ibid). In April 2008, the Internet Crime Complaint Center reported that online payment
fraud complaints filed by consumers in 2007 reached $239 million compared to $198 million in
2006.
The CBO (Central Bank of Oman) advises citizens and residents to take the utmost caution when
carrying out electronic trading. Authorities send messages to warn and advise Omanis to take all
the preventive procedures to make sure of the identity of the seller, to deal only with the

authorized credit card companies, and to avoid financial transactions with unauthorized websites
or individuals, as not to fall victim to scams.
According to Abramson and Hollingshead (1999), online consumers were also concerned that
online vendors may not deliver the goods ordered or that merchandise maybe inferior, incorrectly
selected, or may never arrive.

2.3.2 Dominate Cash Culture
A cash culture is still prevalent in the region with consumers still favoring traditional payment
methods, through concerns over the security of card payments. Although people are aware of
transaction facilities offered by available credit cards, they nevertheless remain dubious with
using credit cards comfortably for online and offline payments.
Cash is widely used in Oman; most Omanis pay for their daily needs in cash. Doctors and
hospitals often expect cash payment for health services. Many companies pay salaries in cash.
Small restaurants and coffee shops accept cash only. The majority in Oman prefer to get cash at
an ATM to pay for their needs rather than using a credit card.
A deep rooted cash culture is still highly influencing consumers buying behavior. A research
conducted by Ernst & Young (2012) in the MENA found that 60 % opt for cash when they asked
how would they like to pay when they shop online. However, only 19 % like to pay by credit
card and 18 % prefer to use debit cards for online purchases.

People remain reluctant to buy online due to the lack of innovative payment options. In their
report, McAfees Dos and Donts of Online Shopping, McAfee (2008) consider that consumers
are rightfully concerned about providing their financial information online.

2.3.3 Unreliable Delivery
Delivery is the most integral part of the whole online shopping process. A business on the
internet is incomplete if the purchaser of that product or service does not receive it. Most online
shoppers in Oman face delay in receiving their products and some do not receive anything at all.
Dennis et al. (2002), explain that customers are put off online shopping by delivery procedures.
Customers also get frustrated by unsuitable times of delivery and unreliable delivery services.
Waiting days or weeks for goods would lead to abandon online shopping. Customers expect their
orders to be home on time and without failed risks, otherwise they will not buy again. A research
published by The Independent on January 2013 found that 60% of people shopping online last
year had problems with delivery of their items (Charlton, 2013).
Some of global online e-retailers do not offer shipping to certain countries, for instance, e-Bay
and Tesco do not ship to Oman. Besides, many online portals charge high shipping costs to
Oman which increases the total cost of the product.


2.3.4 Lack of Individual Home Address
A survey conducted by Al-Solbi and Mayhew (2005) in Saudi Arabia considered the lack of
individual home addresses is another significant obstacle to online shopping growth. In Oman,
individuals have no uniquely identified addresses or mailboxes, and mail cannot be delivered to
homes or offices. Lack of a door-to-door postal service has a negative impact on online shopping
growth. Oman does not use a postal system that delivers to home addresses. If you need to
receive mail or packages in Oman you have to pay extra charges for alternate services which
provide mail tracking and more expedient service, such as Aramex and DHL (Oman Coast,
2012). Businesses in Oman use international shipping companies services like Aramex to
deliver safely on their contracts. Individuals use their work addresses, i.e. the address of the
company they work for, if they have to receive parcels from abroad. The location of a company
is easier to be identified by couriers than a home address.

2.3.5 Consumer Cognition
Consumer cognition is another important factor impact consumers buying decision. Online
transactions must be conducted through computer networks. Therefore, an online buyer must be
in the first place willing and capable to operate a computer. Beside the basic knowledge of
computer use, consumers also have to learn the skills needed to obtain the desired information on
the internet. Since learning-by-doing is an important to acquiring such skills, those who have the
most experience at shopping on the internet are likely to be the most skilled (Ratchford et al.,
2001). In 2011, the Sultanate of Oman has introduced Information Technology studies to
students in the early stages of education. It aims to develop education and raise its efficiency in

the light of modern challenges and requirements of the future. This step helps Omanis to
improve their computer skills in the long run.
In addition to computer literacy, language is considered another barrier to online shopping.
Global portals offer content in the English language. Although English is widely spoken in the
urban areas of Oman, Arabic and Baluchi are the primary spoken languages in the rural areas.
Omans literacy rate has increased to 86.6 % as of 2008 (World Data Atlas, 2012). Oman is
making strong efforts to teach English as the second language to the younger generation, and the
number of providers of English language training has expanded to meet the increased demand.
Another cognition factor that impacts online shopping growth is consumers previous
experience. Consumers previous experiences with online purchases, or lack thereof, can be of
significant influence on their purchasing decisions. Negative experiences increases the level of
risk perception with online purchasing and hamper online shopping growth. Individual cognition
and consumer behavior have great impact on online shopping.
As deep-rooted traditional shopping habits prevail consumers make their purchasing decisions,
after they personally see, hear, touch, taste and try the product in question. Online shopping
could only provide visual and audio effects which influence consumer online buying decision.
Cconsumers buying behaviour and the resulting purchase decision are strongly influenced by
cultural, social, personal and psychological characteristics (Kotler et al, 2003).


2.4 Consumer Behavior in Mall Environment
Shopping malls in Oman have become the modern day community centers, with so much to see,
try, spend, and consume all under one air conditioned roof (My Destination, 2013). Malls have
become more like full-service community centers, where mall shoppers have more than one
reason to go to malls; cinemas, restaurants, playing areas, spas, hair dressers, banks, art galleries,
education centers, and many more beside retail shops are located in a mall. Shopping malls are
viewed as a place not only for shopping but also for recreation and entertainment (Bloch et al.,
1994).
Most Omani consumers prefer to shop in malls, as they consider shopping mall is a place to meet
with friends and family and have fun. As Oman weather is hot almost throughout the year,
people do not have much outdoors options to spend time and have fun; thus, going to air-
conditioned shopping malls is the only option to spend good time and shop as well.
Velitchka and Barton (2006) find that recreational-oriented shoppers derive shopping value from
the shopping activity itself not necessarily buying a product. These shoppers love the fun and
fantasy of the shopping experience. Shoppers browse through the aisles and displays to find what
they want, sometimes finding things they were not even looking for; instant gratification is
always tempting (Paludan, 2012). Retail stores in the Middle East seem to appeal to larger
audience; they appreciate the experience of interacting with the people they meet while there.
Many young consumers, especially the students belonging to high schools, colleges and
universities, do not use credit cards as they do not have an independent income. Mostly they
depend on their families to support them during their period of study with a few exceptions like

the ultra rich. Hence credit cards are not in their schema of things which eventually forbade them
from shopping online, so they may have no choice but to visit malls.
Being able to try, touch, and see products are some of the advantages of shopping in malls.
While shopping from physical stores, returning or changing purchases is an easy task. In
addition, consumers could have better bargain while buying from shopping malls. Nevertheless,
online shopping is fundamentally different from traditional shopping. While shopping online,
people miss the social dimension (Condon, 2012).

2.5 Lack of Local Shopping Portals
Online shoppers prefer to buy locally. According to the latest MasterCard Worldwide Survey on
Online Shopping Behavior, faster deliveries times, buying trusted and familiar brands and being
able to return goods easily, drives people to shop online from local stores (OCarroll, 2012).
Some markets have the technological infrastructure to support e-commerce, but poor in-country
dynamics such as logistics, digital laws, or cultural biases that make internet users wary of
purchasing online (Atkearney, 2012). Oman has an advanced technological infrastructure to
support e-commerce and an active Internet user base; however, managers of online shopping
sites say the growth in online shopping in Oman, although encouraging, is not as high as
expected. People still have a lot of questions and concerns about online payments. And so many
of them just prefer to get information about products on offer and actually physically visit stores
to check them out. says Shaheer Abbas an online retailer (Solomon & Joseph, 2013).
Retail stores in Muscat do not perceive online shopping as a challenge, at least for the time
being. People still like to experience the pleasure of physically visiting stores and buying stuff

online shopping is still in its infancy and even those who shop online carry out traditional
shopping. So no, we do not perceive the growth of online shopping as a threat, says Renil
Markose, manager of a leading branded store chain (Solomon & Joseph, 2013). Very few local
retailers have launched shopping websites in Oman; however most of them do not meet
customers expectations.

2.6 Absence of Multichannel Retailing
Multichannel retailing allows the consumer to transact via a variety of connected channels such
as in-store, online over a computer, and via a mobile site or app. According to The Gulf (2012),
growth in multichannel in the Middle East is being constrained by a lack of content, with many
local retailers failing to offer online product catalogues or purchase facilities on their websites.
Other barriers include a level of mistrust of local retailers, poor customer service, and absence of
an established and trusted postal system.
The absence of multichannel retailing (physical store and online store) in Oman is impacting
online growth. Although many leading brands are available in the sultanate, however none of
them have adopted the multichannel strategy.
Multichannel shopping complements physical shopping, not compete with it. E-commerce and
multichannel integration in emerging markets offer tremendous opportunities at potentially lower
risk on investment than building bricks-and-mortar stores (Atkearney, 2012). With a dearth of
postal services hampering the growth of online shopping in many parts of the Middle East, and
the mall-environment set in the daily activities of the Middle East residents, two thirds of

retailers see their customers making orders online and picking up the items in stores, over the
next two years.
According to research published on September 2012 by CBRE (CBRE, 2012), a property
consultant based in the U.S, when asked how they would do more business online, 80% of
respondents said they would offer shoppers the chance to use online kiosks in their stores. To
be successful, online retailers will have to become more creative in their offer in order to entice
shoppers away from organized formats. said Matthew Green, the head of research and
consultancy for CBRE Middle East (Waqas, 2013).
According to CBRE research (CBRE, 2012), 63% of retailers will convert into fully integrated
multichannel businesses in the coming two years. Many multichannel shoppers like to research
online, but more still prefer to buy products at a physical store.

2.7 Conclusion
Based on the detailed review of literature on the factors hindering online shopping growth in
Oman, a research is prepared to investigate these factors and to understand the current situation
of online shopping in the Sultanate. The following chapter discusses the instruments used for the
purposes of this research.


CHAPTER THREE
RESEARCH METHODOLOGY

3.1 Introduction
This chapter describes the methodology deployed in this study and explains the methods used to
address the dissertation's research questions. It describes the purpose of the study and the data
sampling techniques used. Furthermore, it specifies the data collection methods used for the
purpose of the study and describes the methods employed in analyzing the data.

3.2 Problem Statement
Unlike other parts of the world, online shopping hasnt taken off properly yet in Oman. Omanis
are still reluctant to purchase over the internet. Many factors are contributing to the slow growth
of online shopping in Oman. This study seeks to investigate these factors. It aims to identify
consumers attitudes and concerns towards online purchasing. The outcome of this study would
assist local e-retailers to understand consumers perceived risk towards online shopping. It will
explore what drives people to shopping carts and what puts them off. It would guide e-retailers to
improve their business by implementing the concept of e-commerce in a more efficient way.


3.3 Research Objective
The purpose of research is very important in deciding research approach, strategy, data collection
method and analysis of data. According to Sunders, Lewis and Thornhill (2003), a research can
be categorized as Basic research and Applied research depending on purpose and context.
- Basic research is generally conducted by academic organizations or individuals with self
defined objectives in a flexible time scale with the purpose of expanding knowledge of
business and management processes which has significance to society in general.
- Applied research is conducted by people from different sections of the society in
consideration with different interest groups, with a limited time scale. Its purpose is to
improve understanding of a particular business or a management problem, acquiring new
knowledge that leads to solutions for the interest groups.
As the purpose of this study is to acquire new knowledge and gain better understanding of online
shopping experience in Oman, this research is categorized as Applied Research.

3.4 Research Questions
a) Primary research question:
- What are the factors that hinder the growth of online shopping in Oman?
As online shopping is booming around the world whilst growing slowly in Oman, it was
critical to find out the factors hindering fast growth, and to identify why consumers remain
somewhat reluctant to use online channels for shopping.


b) Secondary questions:
1- What are the factors that act as barriers to online shopping in Oman??
2- What is the impact of online payment methods on consumers buying decision?
3- How can local e-retailers meet customers expectations and enhance online shopping
experience in Oman?
Finding answers to these questions through this study will lead to answer the major question on
what are the factors that affecting the growth of online shopping in Oman and how to enhance
online shopping experience in the Sultanate.

3.5 Research Approach
As any other research, this study requires an adequate approach to fulfill all the requirements of
the research based on the study nature. According to Saunders et al. (2003), there are two
approaches that must be considered to select either one or both of them in a desired study, which
are Quantitative Approach and Qualitative Approach.
- Quantitative Approach involves the use of structured questions where the response
options have been predetermined and a large number of respondents are involved.
Measurement must be objective, quantitative and statistically valid (Saunders et al.,
2003). Quantitative data refers to number organized data and can be expressed
numerically giving the framework with numerical value (Lancaster, 2005).
- Qualitative Approach is based on collecting, analyzing, and interpreting data by
observing what people do and say. Qualitative Approach is much more subjective than
Quantitative Approach. It uses different methods of collecting information, mainly

individual, in-depth interviews and focus groups (Saunders et al., 2003). Therefore, those
data has usage and utilization in investigation about people's opinion, attitude, fears and
hopes which cannot be numerically analyzed.
The research approach is of quantitative and qualitative analysis. The quantitative approach is
based on a questionnaire survey targeting locals and expatriates internet users. The respondents
were expected to respond to certain questions in a given scale. In order to help interpret
quantitative results in a deeper insight and strengthen the research responses, a qualitative data
was gathered as well; respondents were asked open ended questions and were free to give their
own opinions.

3.6 Research Design
The research design is used to address the research questions which were taken into
consideration in this study. According to Sunders et al. (2003), the research design is a general
plan, of how the main objectives being examined in the thesis, were determined. This requires to
clearly stating the objective of research questions, source from which data is to be collected and
the constraints in relation to time, access and ethical issues. There is several research designs
used in different scenarios; however, the purpose of the study enables the choice of a strategy,
which sometimes could be more than one design as well. In the view of Saunders et al. (2003),
there are three various types of research design followed as: Exploratory, Descriptive and
Explanatory.
- Exploratory: Exploratory research is constructed to find out what is happening, to seek
new insights, to ask questions and to assess new phenomena (Saunders et al., 2003). The

usage of this approach is essentially useful for understanding the problem expressing. It is
the most suitable research design for new studies. The main steps to conduct an
exploratory research: searching and studying the literature, talking to experts in the
subject and conducting focus group interviews (ibid). This concept is characterized as
flexible and adaptable to daily changes as a result of new information upcoming or new
hypothesis appearing.
- Descriptive: Descriptive concept tends to answer on questions such as "who", "where",
"how many" and "how much". According to Saunders et al. (2003), the concept of
descriptive research implies design addressed to reveal validate profile of persons, events
or situations. It is useful and crucial when the researcher achievement focuses on details
and description of phenomena or when it should show prediction about specific findings.
In addition, such approach tries to describe present conditions, events or systems based
on the impressions or reactions of the respondents of the research (Creswell, 1994).
- Explanatory: Explanatory research is conducted for answering the "how" and "why"
questions. It focuses on finding casual relationships between variables. The concept of
this approach use qualitative way of research such as case studies, histories and
experiments. It aims to describe relationships expressing the cause and effect of a
particular incident (Saunders et al., 2003).
The descriptive research design was chosen for this study because it aims to present facts which
focus on the nature and status of a situation as it exists at the time of the study (Creswell, 1994).
Therefore, this research is of a descriptive nature as it was developed in order to gain a deeper
understanding of factors influencing online shopping growth in Oman. In addition, such

approach is useful in this study because it enables the researcher to focus on the current
perception of the respondents towards online shopping in the Sultanate.

3.7 Data Sampling

3.7.1 Research Population
The survey was conducted to different age groups of internet users in Muscat, the capital of
Sultanate of Oman, and its surroundings. Omanis and expatriates partook in the questionnaire,
who might or might not been online consumers. Interviews were conducted to internet users who
have online shopping experience and to those who are reluctant to purchase online, including
Omanis and expatriates. Interviews were scheduled to cover the information that is important to
this study. Valid data came from accomplished questionnaires and interviews.

3.7.2 Sampling Techniques
According to Saunders et al. (2003), it is impossible for a researcher to collect and analyze all the
data available due to restrictions in time, money and often access. However, sampling techniques
provide various methods that enable the researcher to reduce the amount of data to be gathered
by considering only data from a part of population yet, still get the appropriate results to
generalize the findings.
Data for this study was collected randomly from internet users. Initially the participants were
asked if they were internet users, only then the questionnaires were distributed and interviews
were conducted.

3.7.3 Sample Size
When conducting a survey, the sample chosen should represent the rest of population; therefore,
for this study purpose, 150 questionnaires were distributed to different sections of society at
different locations such as social gatherings, malls, companies, clinics and universities.
Questionnaires were distributed in person, and via online survey using email invitations.
Interviews were conducted by random selection of online and non online shoppers.

3.8 Data Collection

3.8.1 Methods of Data Collection
Data collection method is one of the most important elements in research project. According to
Saunders et al. (2003), there are various forms of information which can be distinguished in two
main groups as primary data and secondary data.
- Primary Data: Primary data refers to collection of data by researchers in order to gather
valuable data necessary for researchers' projects. The data under this category can be
collected using the various methods and techniques such as interviews, questionnaires,
case studies, observations, experiments or any other method appropriate to the
researchers subject matter.
- Secondary data: Lancaster (2005) stated that the secondary data are "second hand" data
which already are collected and used by other researchers for the purpose of previous
researches and giving hypothesis on other issues. Therefore, secondary data can be

collected from previous studies, surveys or literature. It has qualitative and quantitative
nature and it is useful in both descriptive and explanatory research.
This study is based on primary data collection as its main purpose is to study the current status of
online shopping market in Oman. Moreover, secondary data has been used to present the
theoretical and conceptual part of the study and designing the questionnaire. It was also useful in
providing relevant and recent statistics and facts about online shopping.

3.8.2 Data Collection Instruments
There are various data collection instruments that are used depending upon the type of research
proposal. The researcher may use one or more of the instruments in combination for the purpose.
Such tools or instruments of data collection include interviews, questionnaire, and observation.
Therefore, data can be collected using:
- Interviews: An interview is a direct face-to-face attempt to obtain reliable and valid
information verbally from one or more respondents. Interview can be done in person or
over the telephone.
- Questionnaire: A questionnaire is a preplanned set of questions designed to yield specific
information such as thoughts, feelings, attitudes, perceptions, and behavioral intentions of
research participants, to meet a particular need for research information about a pertinent
topic.
- Observation: observation is the watching of peoples behavior in certain situations to
obtain specific information about the phenomenon of interest.

In order to meet the objectives of this study, two instruments were used; a questionnaire and
interviews. Closed forum questionnaire was distributed consisting of a series of questions for the
purpose of gathering information from respondents. Furthermore, structured interviews were
conducted in order to strengthen the validity and reliability of the findings and to find out
answers to some of the research questions.

3.8.3 Limitation
Since the target population is not much aware of the value of such researches they generally don't
show much interest in participating in the process. To convince them to partake in the
questionnaire was not any easy task. Moreover, many people are not interested in disclosing or
sharing their personal information, therefore, the personal information questions were asked
towards the end of the questionnaire, where respondents would have developed an interest in the
subject by this stage, and complete the questionnaire. In addition, the time available to distribute
the questionnaire, conduct the interviews, and complete the data collection and entry was quite
limited.


3.8.4 Questionnaire

3.8.4.1 Questionnaire Testing
Prior distributing the questionnaire, it was tested to ensure the validity and reliability of the
instruments used, and necessary adjustment has been made to it. The questionnaire has been
piloted to determine how realistic the questions were to the ability of the participants. Seven
internet users completed it, then based on their feedback on what was clear and what was not,
further amendments has been made. In order to keep the questions clear and relevant to
participants of various educational levels, few questions were simplified and simpler English
words were used. The design of one of the likert scale question has been adjusted in order to
keep the question clear and unambiguous. Furthermore, leading questions was altered in order to
limit the bias of the results. The purpose of the questions was to drive generalized results in order
to ensure the validity and reliability of the study results.

3.8.4.2 Questionnaire Administration
A questionnaire is a series of written questions in which participants respond to the same set of
questions in predetermined order. Questionnaires are the most widely used techniques in the
social sciences to collect data, where it can be sent to a large number of people and saves the
researcher time and money. People are more truthful while responding to the questionnaires
regarding controversial issues in particular due to the fact that their responses are anonymous
(Leedy & Ormord, 2001).


Ways of administering questionnaires:
- Self-Administering Questionnaire: The self-administered questionnaire is a questionnaire
that a respondent completes on his/her own, either on paper or via computer. It can be
conducted in a number of ways including individually, by mail and online.
- Interviewer Administered Questionnaire: The interviewer administrated questionnaire is
a questionnaire that a respondent completes in the presence of the interviewer. It can be
conducted via the telephone or face to face.
For the purpose of this study, Self-Administering questionnaire was used, where the
questionnaire was distributed in-person and online, and were collected in the same manner.

3.8.4.3 Questionnaire Design
The questionnaire was designed to fulfill the objectives of the study. It intends to collect required
data with a minimum number of questions. It consists of five sections: Internet Usage,
Convenience and Risk Perception, Spending Intentions, Payment Methods Preferred and
Personal Information. The questionnaire consists of various types of closed ended questions; this
includes cumulative scale questions, ordinal and dichotomous. In addition two questions were
formulated with five-point Likert scaling (Strongly Disagree = 1; Disagree = 2; Dont Know = 3;
Agree = 4; Strongly Agree = 5).


3.8.4.3.1 Questionnaire Sections
- Section A: Internet Usage
This section focused on measuring how many internet users shop online. It intends to
give an idea about the online shopping market in Oman. It also aims to discover the
respondents availability and accessibility to Internet.
- Section B: Convenience and Risk Perception
This section dealt with the factors hindering consumers from buying online. It seeks the
influence of perceived risk, convenience, cost and enjoyment on online consumers
buying decisions.
- Section C: Spending Intentions
This section sought the spending intentions of online consumers. It intends to identify the
online purchasing power of online consumers in Oman, and its influence on the growth of
online shopping.
- Section D: Payment Methods Preferred
The question under this section focused on payment methods preferred by online users. It
intends to show which of the payment methods increases customers confidence online
and drives them to purchase over the internet.
- Section E: Personal Information
This section sought personal information i.e. gender, age, income, educational level,
employment status, and monthly income. This information helps the researcher to find
out the relationship between the demographic information and other variables impacting
online shopping growth.

3.8.5 Interviews
Saunders et al. (1997) describe an interview as a purposeful discussion between two or more
people. Interviews are meant to elicit primary data responses through direct questioning.
Interviews can be conducted in different ways such as structured, semi- structured and un-
structured interview. Through conducting interviews the researcher gets new information or
knowledge which results in identification of several factors influencing the problem under study.
As this research is of a descriptive nature, structured interviews were conducted, where same
questions were asked to all respondents. According to David and Sutton (2004), the strength of
structured interviews is that prompting can be included with the questions, where the interviewer
can ask the interviewee to explain the answers, if found vague.
Interviews for the purpose of this study were conducted in person and over the telephone. Data
collected using interviews has strengthened the validity and reliability of the data collected
through the questionnaire. In addition, it gave more clarification to some of the research
questions.

3.8.5.1 Interview Sections
- Section A: This section focuses on respondents shopping experience. It aims to
investigate which shopping method they prefer and identifies factors influencing their
buying decision.
- Section B: This section investigates the interviewees risk perception. It aims to find out
the influence of the payment methods and delivery options offered by e-retailers on their
buying decision.

- Section C: It focuses on the role of multichannel market in enhancing online shopping.
This section intends to investigate the respondents interest in multichannel shopping
(buy online and pick in-store).
- Section D: Questions in this section focuses on respondents online buying experience. It
intends to investigate the drawbacks they faced while shopping over the internet.
- Section E: It covered the respondents personal information. It aims to find out
relationships between demographic information and other variables impacting online
shopping growth.

3.8.6 Ethical Consideration
Apart from instrumentation and procedural concerns, collecting data from people raise ethical
concerns. These include taking care to avoid harming people, keeping participants information
confidential, and respecting them as individuals (Goddard & Melville, 2007). Any survey should
be conducted in an ethical manner. Therefore, when the questionnaire was conducted, two
important ethical issues were taken into consideration; confidentiality and informed consent. The
participants were fully informed about the aims of the questionnaire. Their permissions were
taken before distributing the questionnaire. Furthermore, all data participants provided are kept
completely confidential and used only for the purpose of this research.


3.9 Data Analysis Method
Data analysis methods help to understand facts, observe patterns, come up with explanations, and
try out hypotheses. There are various methods to analyze data, this includes charts, graphs, and
write-ups in text form. These methods are designed to interpret and refine the data, so that the
end users can obtain useful information.

3.9.1 Quantitative Data Analysis
This is the process of presenting and interpreting numerical data .This analysis could range from
simple diagrams that show frequency of occurrences, to diagrams that show relationships
between variables or more complex relationships. The outcome of quantitative data analysis
often contains descriptive statistics and inferential statistics. The data collected for the purpose of
this study were analyzed using MS Excel where logical links between the variables were created.

3.9.1.1 Types of Data
When analyzing quantitative data, the appropriate methods for summary and display depend on
the purpose of the study and the type of the research questions. Appropriate statistical test should
be employed in order to ensure the accuracy of the results. According to Saunders et al. (2003),
the quantitative data can be divided into two groups: categorical and Quantifiable.
- Categorical Data: Those values cannot be measured numerically but can be classified
into sets according to their characteristics. The variances of this type of data are:

o Nominal: No inherent order in categories; such as eye color, ethnicity, etc.
(University of the West of England, 2007).
o Ordinal: Categories have inherent order; such as age groups (ibid).
o Binary: Two categories; such as gender (ibid).
- Quantifiable Data: Those values can be measured numerically. The variances of this type
of data are:
o Discrete: Usually whole numbers; such as number of business books: ratio
(University of the West of England, 2007).
o Continuous: Can take any value in a range, although necessarily recorded to a
predetermined degree of precision; such as temperature C/F: interval; height:
ratio (ibid).
Therefore, the data collected through the questionnaire was of quantifiable type, where the data
was more precise and easy to analyze.

3.9.2 Qualitative Data Analysis
Qualitative data consists of words and observations rather than numbers. Analysis and
interpretation requires creativity, discipline and systematic approach in order to bring good
understanding to the end users (Taylor-Powell & Renner, 2003). In order to analyze the results of
such data it is important to categorize them in a meaningful way; this depends on the type and
nature of the questions.
For the purpose of this study structured interviews were conducted, where the data collected
through the interviews was categorized according to the requirements of the research questions.

3.10 Conclusion
This research is categorized as applied research. The research approach is of quantitative and
qualitative analysis and it is of a descriptive nature. This study is based on primary data
collection and on secondary data. Two instruments were used to collect the primary data; a
questionnaire and interviews. Data collected were analyzed and displayed using the appropriate
methods. The next chapter presents the data analysis and displays the findings of the research.


Chapter Four
Analysis and Findings

4.1 Introduction
This Chapter presents and analyzes the data collected through the questionnaire that was
prepared and distributed for the purpose of this study. In addition, it presents and analyzes the
data gathered through the structured interviews. It explores why Omani consumers have not yet
embraced online shopping and still much rather prefer to shop in-store.

4.2 Quantitative Data Analysis

4.2.1 Data Tabulation
The data gathered were tabulated using Microsoft Office Excel 2007. Microsoft Excel features
were used to enter the available data, design the graphs and to create links between variables. As
the data was quantifiable, the demographics and personal information (i.e. age and monthly
income) scale of five were further tabulated to create a three scale measurement for interpretation
and presentation as shown below:

Table 4: Demographics scale

For ease of interpretation the Likert Scale, data were grouped into two new categories. Ratings of
Strongly Disagree and Disagree were grouped together into one category called Disagree.
Ratings of Strongly Agree and Agree were grouped together into one category called Agree.
However, ratings of Dont Know were not counted. Links between non-online buyers and
factors keeping them from buying online was established to identify the most influential factors
that affect their buying decision. Another link between online buyers and perceptions towards
online shopping were created. Moreover, a relationship was created between demographic
factors and online shopping experience. The analysis of data gathered was done using functions,
sorting, filtering and graphical presentation.

4.2.2 Questionnaire Responses
All participants who partook in the questionnaire are internet users, have easy access to internet,
and familiar enough to use it for useful purposes. Participants do not have any language barrier,
and have good level of English language skills. There were 150 questionnaires distributed to
different sections of society, Omanis and expatriates, 135 completed questionnaires were
received. There were 10 questionnaires left out of study due to incomplete information, where it
Old Aged
Under 18 18 - 29 30 -39 40-49 over 49
Low
less 300 300 - 700 701 - 1000 1001 - 1500 More than 1500
Age Group
Young Aged Middle Aged
Moderate High
Monthly Income in O.R.

couldnt be accounted as valid questionnaires. There were 125 questionnaires valid and ready to
be analyzed for the purpose of this study.

4.2.3 Detailed Analysis of Questionnaire Results
The quantitative data gathered through questionnaire is presented in graphical form with a brief
description for each graph in order to explain the results of each question.

Section A: Internet Usage
In this section, questions about internet usage have been covered in order to know the
respondents availability and accessibility to internet, and their purpose of using the internet.

Figure 2: Usability of Internet

83% of the participants have been using the internet for more than five years as shown in figure
2. This result shows that most participants have good experience with the internet. Internet
experience is not a barrier to online shopping in Oman.

7%
10%
83%
How many years have you been using the web?
Less than 3 years
3 - 5 years
More than 5 years

22%
40%
38%
How often do you use the internet on a daily basis?
Less than 2 hours
2-5 hours
More than 5 hours

Figure 3: Internet Usage on a Daily Basis

Most participants use the internet for more than two hours on a daily basis (figure 3). This
indicates that respondents have an easy internet access, i.e. at their home, work place, public
place, etc.

Figure 4: Purpose for Using the Internet
92%
84%
73%
40%
27%
%

o
f

P
a
r
t
i
c
i
p
a
n
t
s
How do you use the internet?

The research revealed that only 27% of participants use the internet to shop online. The majority
of internet users use the internet for sending and receiving emails, and for searching information.
The study found that 73% access social networking sites while connected to the internet and 40%
use the internet to play games online and to access other entertainment sites. These figures reflect
that even though Omanis have internet facility, use smart phones with internet connectivity, yet
they use the internet only for viewing and downloading movies, songs, social networking sites
for connecting with new friends and communicating with them. Rarely do they use it for
shopping online.

Section B: Convenience and Risk Perception
In order to investigate consumers perception towards online shopping, this section was divided
into two main questions; one question targeted non-online buyers and the second question
targeted online buyers.
- Data collected from non-online buyers is grouped together and shown in figure 5.

Figure 5: Factors hindering Online Shopping Growth

Amongst the top factors keeping them from buying online, respondents chose risk of credit card
fraud (82%), unavailability of COD(Cash on Delivery) payment option (74%), lack of a door-
to-door postal delivery service (71%) and risk of not receiving the products they purchased
online (70%).
68% of the participants said that they do not purchase their needs over the internet as they are not
able to touch the products. 64% of the respondents agreed that lack of trustworthiness of e-
vendors is one of the factors that keep them from buying online, and 61% prefer buying from
shopping malls to shopping over the internet. The absence of local shopping portals keeps 44%
from buying online. 40% said they had undergone a bad experience in the past. However, only
16% do not purchase online because they are not skillful with internet.
Not skillful with internet
Undergone a bad experience in the past
Absence of local shopping portals
Prefer to shop in shopping malls
Lack of trustworthiness of e-vendors
Not being able to touch the product
Risk of not receiving the product I bought online
Lack of a door to door postal delivery service
Unavailability of 'Cash on Delivery'
Risk of credit card fraud
16%
40%
44%
61%
64%
68%
70%
71%
74%
82%
% of Participants agreed
What factors refrain/keep you from buying online?

These figures show that inconvenient payment methods, lack of a door-to-door postal service,
and unreliable delivery methods have a significant impact on consumers online buying decision.
Additionally, the habit of touch and see the product before buying it has a high impact factor on
consumers decision. Lack of trustworthiness of e-vendors and the temptations of shopping
malls are important factors hindering online shopping in Oman.

- Data collected from online buyers is grouped together and shown in figure 6.

Figure 6: Convenience and Risk Perception

More than 80% agreed on online shopping is any where any time, saves time, and gives them
access to global brands. 77% indicated that when they buy online, they have concerns about their
credit card and personal information being stolen, and 73% consider shopping online is risky.
Online shopping is 'anywhere anytime' shopping
Shopping online saves time
Shopping online is risky
I am concerned about my credit card and personal information being
stolen
Selecting, buying and paying on online stores is complicated
A long time is required for the delivery of products
I prefer to buy online from brands that have physical stores in Oman
I have access to global brands
Online Purchasing is a money saving option
8%
15%
27%
18%
79%
32%
52%
16%
32%
92%
84%
73%
77%
19%
52%
40%
82%
55%
Convenience and Risk Perception
Agree Disagree

9%
21%
33%
37%
Amount Spend on a Single Purchase
less than O.R. 30 O.R. 31 - 50 O.R. 51 - 100 O. R. 101 & above
9%
37%
33%
21%
Amount Spend per Year on Online purchases
Less than O.R 100 O.R 101 - 300 O.R 301 - 700 O.R 701 & above
The research found that 55% of online shoppers consider online purchasing is a money saving
option. In addition, 52% agreed that a long time is required for the delivery of products on the
internet, and 40% prefer to buy from brands that have physical stores in Oman. 79% of online
buyers consider selecting, buying and paying on online stores an easy task.
The survey found that although they buy online, more than 70% of online buyers indicated that
they always have concerns about online fraud and consider shopping over the internet is risky.

Section C: Spending Intentions
This section focuses on online buyers spending intentions in order to evaluate online purchasing
power in Oman.

Figure 7: Spending Intentions - Single Purchase Figure 8: Spending Intentions per Year

The research found that 37% of respondents would spend more than a100 O.R on a single online
purchase and 33% would spend between maximum amounts of 51 to 100 O.R. on a single

0%
10%
20%
30%
40%
50%
60%
Billing to
mobile
phones
Cash on
Delivery
Credit Card Wire
transfer
%

o
f

P
a
r
t
i
c
i
p
a
n
t
s
payment methods chosen as the most preferred option
Most preferred payment methods
purchase. Moreover, 37% would spend an approximate maximum amount of 101to 300 O.R. per
year on online purchases and 33% said they would spend up to 700 O.R. per year on online
purchases. The survey revealed that online buyers spending intentions are of moderate level.

Section D: Payment Methods Preferred
This section aims to find out the preferred payment methods for online purchases. Participants
were asked to rate the methods on a scale of 1-4, where 1 being the most preferable method. The
percentage of participants who chose each payment method as number 1 is shown in the figure
below:

Figure 9: Payment Methods Preferred

The survey explored that 56% of respondents prefer to use Cash on Delivery when they intend
to buy over the internet, however, 35% considered credit card a preferable payment option for

46%
54%
Gender
Male Female
online shopping. Only 6% indicated that wire transfer payment option is the most preferable, and
2% chose billing to mobile phones as the most convenient option. The study found that Omanis
consider COD payment method is one of the most convenient online payment options.

Section E: Personal Information
The last section covered demographics and personal questions to gather information about the
respondents which could help the researcher to find relationships between demographic factors
and other variables.

a) Respondent Gender
The respondents were a mix of online buyers and non-online buyers. Male and female
respondents partook in the questionnaire as shown in the figure below.

Figure 10: Respondents Gender

54% of respondents were females and 46% were males.

35%
65%
Male Respondents
online Buyers Non-online Buyers
21%
79%
Female Respondents
Online Buyers Non-online Buyers
37%
35%
28%
Age Groups
18-29
30-49
over 49
0
5
10
15
20
25
30
35
40
18-29 30-49 over 49
N
o
.

o
f

P
a
r
t
i
c
i
p
a
n
t
s
Online Buyers
Non-Online Buyers

Figure 11: Male Buyers VS. Non-Buyers Figure 12: Female Buyers VS. Non-Buyers

35% of male respondents said they bought online; however only 21% of female respondents
were online shoppers. This result shows that males have the interest in online shopping more
than females.

b) Respondent Age
The respondents were of different age groups as shown in the figures below.
Figure 13: Respondents Age Groups Figure 14: Online Buyers VS. Non-Buyers
Age Wise


High School
26%
College/Dipl
oma
27%
Bachelors
25%
Masters or
higher
22%
Educational Level
0
5
10
15
20
25
30
35
N
o
.

o
f

P
a
r
t
i
c
i
p
a
n
t
s
Educational Level
Online Buyers
Non-Online Buyers
The survey targeted different age groups as shown in figure 13. Most of the middle and old age
respondents were employed. Many of the young participants were students and/or employed.
The survey revealed that online buyers are mostly of age 30-49 as shown in figure 14.

c) Respondent Educational level
Figure 15: Participants Educational Level Figure 16: Online Buyers vs. Non-Buyers
Educational Level wise

Participants of different educational levels partook in the survey as shown in figure 15.
The research found that educational level has high impact on online shopping adoption. As
shown in figure 16, the greatest portion of online buyers in Oman has high educational level as
Bachelors or higher. This result indicates that qualification is an important element influencing
consumers buying decision.


19%
55%
9%
17%
Employment status
Student
Employed
Retired
House wife/Husband
0
10
20
30
40
50
N
o
.

o
f

P
a
r
t
i
c
i
p
a
n
t
s
Employment Status
Online Buyers
Non-Online Buyers
23%
50%
27%
Monthly Income
less than 300 300-1000 over 1000
0
10
20
30
40
50
less than 300 300-1000 over 1000
N
o
.

o
f

P
a
r
t
i
c
i
p
a
n
t
s
Monthly Income in O.R.
Monthly Income
Online Buyers
Non-Online Buyers
d) Respondent Employment Status
Figure 17: Participants Employment Status Figure 18: Online Buyers vs. Non-Buyers
Employment Status Wise

As shown in figure 17, people of various employment statuses participated in the survey. The
survey revealed that employed respondents were the most online buyers. Students, retired and
house wife/husband rarely buy online as shown in figure 18.

e) Respondent Monthly Income
The participants were of various monthly income levels as shown in the figures below:
Figure 19: Respondents Income Figure 20: Online Buyers vs. Non-Buyers
Income Wise

Figure 19 shows that respondents were of high, moderate and low income level. The majority of
online buyers were of moderate and high income levels as shown in figure 20. The research
found that income level has impact on online shopping in Oman, where consumers with low
income level barely buy online.

4.3 Qualitative Data Analysis
The interview questions were divided into five sections. Structured interviews were conducted
with eight internet users, where four of them were non-online shoppers and the other four were
online buyers. The interview responses were analyzed and matched with the data collected
through the questionnaire in order to check its consistency with results of quantitative data.

4.3.1 Detailed Analysis of Interview Results
Section A
This section focused on internet usage and respondents preferable shopping methods. The
interviewees use the internet for more than three hours a day and for various purposes, including
searching information, social networking, sending and receiving emails, and shopping online.
When asked about how they prefer to shop, the non-online buyers respondents said they prefer
in-store shopping to online shopping as they like to touch and feel the product before buying it
and bargain for discounts. One of the interviewees stressed that when buying from physical store,
it is easier to return or exchange products. Non-online shoppers mentioned that they consider
shopping malls are a place not only for shopping but also for entertainment, where they can meet
with friends or family, have coffee, watch cinema, and the kids can enjoy the play areas

available at most malls. They explained that there are no other places except shopping malls to
have fun, and meet friends and relatives due to hot weather conditions which are generally tough
throughout the year. One of the interviewees said that she had undergone a bad experience in the
past, and she does not trust e-vendors, so she prefers in-store shopping. An interviewee of old
age indicated that he prefers to buy with cash in order to control his expenses; he explained: If I
have cash money I buy, if not I do not buy. If I use my credit card I might spend more money
and lose control of my expenses.
Online shoppers said they prefer to purchase certain items online where they can get good deals,
save time and travelling expenses, and get products that are not available in Oman. One of the
respondents mentioned that he is living in a rural area where he cannot find what he needs
around, thus he prefers to shop online; however he uses his work place address in order to
receive the products he bought online.

Section B
This section investigated the interviewees risk perception. Non-online buyers have mentioned
that their main concerns are credit card fraud, product delivery and product quality. However,
online shoppers stated that they do not have concerns when they purchase over the internet as
they buy from trusted websites only and use their work place addresses as shipping address.
When asked about the payment method they like to use online, non-online shoppers indicated
that they prefer Cash on Delivery payment method as this option increases their confidence
online. One of the online buyers mentioned that she prefer to use credit card when she buys from
trusted websites and COD when she buys from unknown vendors.

Online buyers prefer to use credit card through PayPal payment service when they purchase over
the internet. They explained that wire transfer method cause delay, where the vendor has to
receive the money before delivering the products. Two interviewees who are online buyers stated
that they do not like to use COD because they cannot guarantee that someone will be at home
to receive the products and pay the money. In addition, online shoppers consider billing to
mobile phones is not convenient and is not widely used in Oman.
All Interviewees stated that the payment and delivery options offered by an e-retailer strongly
influence their buying decision. Non-online buyers indicated that they would purchase products
online if they have the option to pay COD. An online buyer stated that he buys from portals
that offer payPal payment service as he had passed a bad experience in the past. Another online
buyer mentioned that some online vendors do not offer shipping to Oman. Additionally, a buyer
stated that delivery time highly influences his buying decision. He explained that if it requires a
long time to receive the product, then he would not buy it online.
Lack of individual home address is an important factor influencing consumers decision in
buying online. Online buyers stated that they use their work place address when they purchase
over the internet. Non-online buyers mentioned that they do not have an individual address or a
work place address; this is one of the main reasons that stopping me from buying online a non-
online buyer clarified.


Section C

This section focused on the role of multichannel market in enhancing online shopping in Oman.
All interviewees predicted that multichannel market would get good respond in the big cities.
One of the participants explained that this option would be very successful in the big cities like
Muscat; however, hypermarkets and branded stores do not exist in rural areas. Interviewees
indicated that buying online and picking in-store would reduce the risk encountered online
consumers and encourage them to use the internet for shopping.
Non-online buyers stated that if they have the option to buy online and pick in-store they would
not worry about their products getting lost. This option would give them the advantage to touch
and see the product, to check its quality and it reduces credit card fraud risk. All interviewees
stated that multichannel would be a good experience and would affect online growth in Oman.

Section D
This section focused on the respondents online buying experience. When asked about their
recent online shopping experience, two of the online buyers stated that it was excellent where
they bought airline tickets and booked hotels. Another online shopper stated that he received the
product on time, but the quality was not as expected. One of the non-online buyers mentioned
that she hasnt bought online since last year because the last time she ordered online she did not
receive the products. Another non online shopper mentioned that she never buy over the internet
unless she has the option to pay COD, because she has concerns about credit card fraud as she
heard many stories about online fraud from the press and friends. Another Interviewee has
mentioned that his credit card was hacked, however he still likes to buy online with a credit card,

but he uses PayPal payment service. All respondents have agreed that online shopping is a
money saving option, where they could get good deals, wide variety and sometimes free
shipment.

Section E
This section included personal information questions where the respondents were from different
sections of society including a university professor, a company employee, a housewife, a banker,
a manager and a university student. Interviewees with high educational level (masters degree
and above) and middle age were online shoppers. The interviews of old age and the house wife
were non-online buyer. Most online buyers were males. Employment status does not have much
impact on the interviewees shopping decision.

4.4 Conclusion
This chapter presented the quantitative and qualitative data results. Graphical presentation of the
quantitative data results was shown along with a brief explanation of each section outcome. Data
collected through the structured interviews were stated and explained in details according to the
true statements and opinions expressed during the interviews. The next chapter presents the
recommendations based on the analyzed data, and it states the limitations of the research.


Chapter Five
Conclusion, Limitations and Recommendations

5.1 Introduction
This chapter discusses the interpretation of data analyzed in chapter four to understand the
findings and make necessary recommendations for the improvement of online shopping in
Oman. I n addition, it gives answers to the research questions and finds out whether research
objectives were achieved.

5.2 Conclusion
The study investigated factors that are contributing to the slow growth of online shopping in
Oman. It explored consumers attitudes and concerns towards online shopping. The objective of
the research was to find strategies that could enhance consumers confidence online and drive
more Omanis to shop over the internet.
This study has lead the researcher to believe that online shopping in Oman has the opportunity to
grow and flourish in the coming few years if e-retailers understand and respond to consumers
wants and needs. The research has revealed that only 27% of consumers in Oman access the
internet for online shopping. Amongst the top factors hindering online shopping in Oman, are

security and delivery concerns. The findings show that online credit card fraud risk is the main
barrier to online shopping. Consumers have concerns about their credit card and personal
information being stolen. Unreliable delivery service is affecting customer perception of the
level of risk involved in purchasing online. Consumers refrain from buying online due to risk of
not receiving their products.
The study has highlighted a number of key problem areas with online shopping in Oman apart
from trust and security issues that are global issues. First of all is the lack of a door-to-door
delivery service. 71% do not bother to purchase online due to lack of a door-to-door delivery
service. Individuals in Oman have no uniquely identifying addresses or mail boxes, and mail
could not be delivered to them directly. In addition, more than 60% prefer to shop in shopping
malls. Shopping malls in Oman are attractive locations in which to shop, where Omanis enjoy
the various facilities available in shopping malls. Another significant factor that is negatively
affecting online shopping in Oman is the dominant cash culture. The study has found that 74% of
Omanis are being put off online shopping because of the unavailability of CoD payment
option. Omanis prefer to deal with cash.
The research findings show that the majority of Omani consumers still have the habit to touch
and feel the product before buying it, so they prefer in-store shopping to online shopping. In
addition, lack of trustworthiness of e-vendors and absence of local shopping portals are critical
problems discouraging consumers to commit a purchase online.
All the above factors act as barriers to online shopping and play an important role in hampering
online shopping growth in Oman. The study found that computer and language literacy are not
acting as barriers to online shopping.

Education is influencing consumers attitudes towards online shopping where most online buyers
have high educational level. A growing number of grade 12 graduates are seeking higher
education, and the number of colleges and higher education institutions established in Oman is
increasing. Therefore, the researcher believes that education will not be an issue in the long run.
Consumers of age 18-29 and consumers of low income barely buy online. A section of the youth
are taxi-drivers who find the use of credit cards to shop online a cumbersome procedure
involving the entry of card numbers, date of expiry, CVV numbers etc. Another factor is the lack
of time at their disposal to sit patiently before the internet entering all the details of the credit
card and shop. Moreover, a majority of young consumers, especially university students or
graduates who are looking for jobs, have limited resources available and most of them do not
have bank accounts and credit cards, hence, they cannot purchase online. Buying in cash from
physical stores is their only choice.
The research found that online payment options are highly influencing consumers buying
decision in Oman. The study has revealed that 56% prefer to use COD payment option when
they purchase products online, however 35% would pay by credit card for their online purchases.
Beside the dominance cash culture in Oman, the risk involved with using credit card drives
Omanis to abandon online shopping carts. As they hear about credit card fraud every now and
then from the press and receive warning messages from authorities and banks, Omanis try to
keep their financial and personal information secure; thus prefer not to use their credit cards for
online transactions. Additionally, many consumers have undergone a bad experience in the past.
The availability of COD payment option increases consumers trust and confidence in online
shopping portals. This payment option gives consumers the feeling of security by avoiding
scams. Additionally, as consumers do not have proper addresses, and the postal service is

unreliable and poor in Oman, consumers prefer to ensure that they receive their products before
paying for it. The research found that more than 70% of potential online consumers refrain from
buying online due to the unavailability of COD payment option. Although credit cards are
widely used for online transactions, however consider offering alternative payment options
would enhance consumers trust and influence their buying decision.
The research findings show that multichannel retailing would get good response in the big cities
in Oman. Retailers could enhance online shopping and meet consumers expectations if they
break into multichannel. Multichannel retailing increase consumer loyalty, increase sales and
improve brand awareness and presence. The researcher believes that local retailers and branded
stores could break into multichannel successfully if they offer convenient payment options, allow
consumers to search and order online, and offer the option to collect in store. Omanis would
embrace multichannel shopping as it decreases consumers risk perception towards online
shopping. Implementing multichannel strategy would promote online shopping experience in the
sultanate. It allows consumers to have the option to pay in cash, touch the product, visit the mall
and collect the product in person. Nevertheless, multichannel retailing will enhance online
shopping growth in Oman and will revolutionize the way people buy.
As lack of trust is one of the main barriers to online shopping in Oman, e-retailers have a big
responsibility and a real opportunity to establish consumers confidence in online portals. The
research shows that COD is the most convenient payment option chosen by internet users,
followed by credit card. E-retailers have to consider offering alternative payment methods to
increase consumers confidence and enhance their sales online. Moreover, lack of a door-to-door
delivery service is another major factor hindering online shopping in Oman. The findings show
that the time required to receiving the product and the lack of a door-to-door delivery service

have great impact on consumers online buying decision. E-retailers have the opportunity to
enhance consumers trust in their websites through improving online delivery. In order to offer
efficient delivery, e-retailers need to co-ordinate with reliable courier companies or they have to
establish a delivery team for local deliveries. Moreover, communicating with the consumer
during delivery is vital in order to take the proper directions to reach him/her. Communicating
through e-mails, messages or phone calls boost consumers confidence in the order they have
placed. The research shows that consumers online purchase intentions are moderate. Through
gaining consumers trust, e-retailers have a real opportunity to enhance online shopping
experience and compete with in-store shopping in Oman.

5.3 Limitations of the Study
As this study was conducted in Muscat and its surroundings, there was a lack of access to the
other big cities and to the rural areas in Oman. This research depicts the findings from a small
group of people. Even though the participants had credible input, however, to conduct a more
promising research, the study should involve participants from the various provinces of Oman.
Due to the lack of previous statistics and resources about online shopping in Oman, this research
could not depict a complete picture of the growth and state of online shopping in Oman.


5.4 Recommendations
Global and local e-retailers should consider the following points in order to increase Omanis
trust in their websites and to enhance online shopping in Oman.
Offer COD payment option
Offer a reliable door-to-door delivery service
Consider breaking into multichannel through allowing consumers to purchase online and
collect in-store.
Offer good deals and give discounts on online products
Consider targeting middle aged group as they are the most potential online buyers
Consider targeting moderate and high income consumers as they are the most online
buyers
Consider targeting employees as they are more likely to buy online
Focus on targeting consumers with high education levels as they are more likely to buy
online than those who have less qualifications
Take into consideration males like to purchase online more than females

5.5 Personal Thoughts
As the motivations for this research are personal, the researcher believes that it is critical for
local retailers to embrace new innovations in order to attract consumers and change current
preconceptions about online security, consumer rights, data protection, service quality and actual
product delivery.


For online shopping to grow, rigorous efforts need to be made to enlighten and educate Omani
consumers. E-retailers should reach potential consumers in an effective way to enable them to
realize the advantages of online shopping as they are habitual to visit physical shops to meet their
demands. Moreover, e-retailers should offer convenient payment options such as COD and
third party payment service, for instance PayPal, to decrease consumers risk perception. In
addition, e-retailers should give delivery service more consideration and offer a door-to-door
delivery service. For consumers who do not have proper addresses, the delivery person should
have the permission to contact the consumer and get the directions to reach him/her.
The researcher advises brands that have physical stores in Oman to break into multichannel and
allow their websites to complement their physical stores. Omanis have good English and
computer skills which allow them to easily browse the web and visit online stores. Consumers
living in the cities have internet access at their homes, work places and at coffee shops. In
addition they can access the internet on their mobiles.
The researcher believes that online shopping in Oman is going to develop and grow in the
coming few years, if local retailers start thinking outside the box. In order to acquire and retain
customers and sustain growth, local retailers have to change the way they target, attract, maintain
and engage with their customers. Whilst implementing multichannel strategy, local retailers have
to implement e-commerce, promote online presence, create customer confidence, join social
networks, make their website user-friendly, offer video demonstrations of the product, offer
special discounts and improve their delivery system.
The government of Oman has taken initiatives to encourage e-commerce, including helping
businesses save more time and money, through smart electronic services, developing local ICT

industries, building a secure foundation for e-commerce transactions, and minimizing the Digital
Divide. Retailers have the opportunity to start their businesses online and contribute to e-
commerce development in general and the diffusion of online retailing in particular.

5.6 Further Researches
Since not much work has been done to study the online buying trend in Oman, no comparative
conclusion was drawn to show the difference over a period of time. This study is very important
to local e-retailers or retailers who are intending to start their business online. Moreover, this
study may provide a bench mark for future researches in this field and can be utilized to compare
with any new study taking place over a period of time. Researchers can utilize the data and
literature as secondary source of information to study the online shopping experience in Oman,
as this study has identified and discussed challenges that would be addressed in future
researches.


Appendix A
Questionnaire: Online Shopping in Oman

This questionnaire is part of my MBA dissertation at Robert Kennedy College/University of
Wales. It aims to study the consumers perceptions towards online shopping. Your completed
questionnaire will be confidential and will only be seen by myself, the professors and examiners
at RKC/UOW. The study will be useful to understand the future of online shopping in the
sultanate.

Please read each question carefully and indicate your response by selecting the most appropriate
choice that describes you and your behavior; there is no right or wrong answer to the questions.
The questionnaire should take around 10 minutes to complete. If you wish to stop completing the
survey at any time, please feel free to do so. Thank you for taking the time to partake in the
questionnaire.

Section A: Internet Usage

3-5 yrs More than 5 yrs
2-5 hrs More than 5 hrs
3. How do you use the internet? E-mails Shopping online
Entertainment/Games Social networks
Search information
2. How often do you use the internet
on a daily basis?
1. How many years have you been using
the WEB?
Less than 2
hrs
Less than 3
yrs

Section B: Convenience & Risk Perception
4. Please check the box that best indicates how well you agree/disagree on the factors
refrain/keep you from buying online.

*If your answer to question no. 5 is "None" please move on to question no.9.

Absence of local shopping
portals
Lack of trustworthiness of e-
vendors
Undergone a bad experience in
the past
Prefer shopping malls to online
shopping
Risk of not receiving the
product I bought online
Unavailability of 'cash on
delivery' payment option
Not being able to touch the
product
Risk of credit card fraud
Lack of a door to door postal
delivery service
Not skillful with internet
Strongly
Disagree
Disagree Don't Know Agree
Strongly
Agree
None
5. How many online purchases have
you made in the past 9 months?
3 or less
occasions
4-6
occasions
More than 6
occasions

6. Please check the box that best indicates how well you agree/disagree the statement which
describes you personally and reflects your impressions.

Section C: Spending Intentions

Shopping online saves time
Shopping online is risky
I have access to global brands
Strongly
Disagree
Don't Know
Strongly
Agree
Agree Disagree
Online shopping is 'anywhere anytime'
shopping
I am concerned about my credit card
and personal information being stolen
Selecting, buying and paying on online
stores is complicated
A long time is required for the delivery
of products on the internet
I prefer to buy online from brands that
have physical stores in Oman
Online purchasing is a money saving
option

Section D: Payment Methods Preferred
9. Which of these payment methods you prefer to use when you buy online? Please rate them on a scale
of 1-4, where 1 being the most preferable method.

Section E: Personal Information
10. Demographics

Thank you for completing this questionnaire. Your responses will be very useful to my research.

Billing to mobile phones
Cash On Delivery
Credit Card
Wire Transfer
Gender Male Female
Age Under 18 18 - 29 30 - 39 40 - 49 Over 49
Student Employed Retired House wife/husband
300 to 700 Monthly Income in
O.R.
Less than
300
1001 to
1500
Educational Level
More than
1500
High School College/
Diploma
Bachelors'
Degree
Employment status
Masters and/or higher
701 to 1000

Appendix B
Interview Questions: Online Shopping in Oman
My name is Lina Abou Chahla; I study at RKC/UOW. This interview is part of my MBA
dissertation. The dissertation aims to study consumers perceptions towards online shopping.
Your input will be confidential and will only be seen by me and the professors and examiners at
RKC/UOW. This interview should take around 20 minutes to complete.

Section A
1. How many hours do you use the internet per day and for what purpose?
2. How do you prefer to shop? Why?

Section B
1. When shopping online, what are your main concerns?
2. Which payment method is more convenient to you: credit card, cash on delivery, wire
transfer or billing to mobile phones? Why?
3. How do the payment and delivery options offered by an e-retailer influence your buying
decision?
4. How far do you think lack of individual home address is affecting consumers decision in
buying over the internet?

Section C
1. If the big retailers like Carrefour Hypermarket break into multichannel and offer the
option to buy online and pick in-store, how do you think customers will respond to this
new experience?
2. Do you think multichannel market eliminates consumers concerns about online shopping
and encourage them to buy online?

Section D
1. When was the last time you made a purchase over the internet? What do you say about
this experience (payment method, delivery time, product quality, etc.)?
2. Have you had any negative experiences whilst shopping online? Please specify.
3. Do you think online purchasing is a money saving option? Why?

Section E
1- Please specify your personal information: gender, age, educational level, income, and
employment status.


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