1.

2 Background of the studies

In this modern era, the trend of consumer spending behavior is not
only applied to the physical stores as today E-commerce has become
more and more prevalent. The advancement of e-commerce is killing and
making those old and traditional business methods become redundant
and obsolete.
Consumer buying behavior (CBB) is defined as the sum total of a
consumer's attitudes, preferences, intentions and decisions regarding
the

consumer's

behavior

in

the

marketplace

when

purchasing

product or service. (Velumani, D. M., 2014) Since, online business of the

main profit resource is based on the customer so it is important for
analysis and understanding their behavior in order to implement the
suitable marketing strategy.
While, electronic commerce ( E-commerce) is a trade of services and
goods which is growing at a phenomenal rate as companies and
consumers discover the benefits of instant access to data and the ability
to make on-screen transactions. (Jelassi, Tawfik & Albrecht Enders, 2005)
The present of the E-commerce has saved lots of time for those people
who are busy with their job as goods are in their fingertips by a just simple
click in the Internet.
There are several online marketplaces dominated in Malaysia such
as Lazada, Zalora, 11 streets.my and Lelong.com. A survey was done by
Nielson Company in 2014 revealed that travel services are the most
commonly purchased items online in Southeast Asia, along with tickets for
events such as movies, live performances, exhibitions and sports games.
Besides, in 6 out of 10 Malaysian consumers plan to go online to purchase
flight tickets (67% and third highest globally) and make hotel and tour
reservation (62% and second highest globally) within the next six months
while 58 percent of Malaysian consumers would go online to purchase
event tickets such as movie, performance, and exhibition (third highest
globally). (The Nielsen Company, 2016)

In Malaysia, an online payment system provider iPay88 Sdn Bhd

stated that there is a strong growth in the sector of e-commerce in the
year 2016 although the economic is gloom. The transaction volume
doubled to RM1.6 billion (US$3.9 million) from the previous year and
expected to grow 63% to RM2.6 billion (US$6.3 million) in 2016. (Digital
news Asia, 2016)
This research is investigates the relationship between the impact of
emerging

e-commerce

toward

the

consumer

spending

behavior.

Nowadays, local retail are hardly compete with e-commerce and

customers are converged to purchase products online. Thus, by studying
the consumer spending behavior that the factors causing the change of it
we can easily know what the future trend of doing business is.

Reference
Digital News Asia, 2016, Malaysias e-commerce penetration to double in
2016: iPay88 [online] available at:
https://www.digitalnewsasia.com/malaysias-ecommerce-penetrationdouble-2016-ipay88
The Nielsen Company, 2016, MALAYSIANS RANK AMONG THE WORLDS
MOST AVID ONLINE SHOPPERS, available at:
http://www.nielsen.com/my/en/press-room/2014/e-commerce.html
Jelassi, Tawfik & Albrecht Enders (2005) Strategies for E Business: Creating
Value through Electronic and Mobile Commerce.Pearson Education Ltd,
Harlow
Velumani, D. M.(2014). A Study on Consumer Buying Behaviour towards
Nokia Mobile in Erode District. IOSR Journal of Business and Management,
16(12), 52-54. Doi: 10.9790/487x-161225254