Marketing 2
Marketing 2
NING YANG
Metropolitan University
25 November 2009
DECLARATION
This work has not been previously accepted in substance for a degree
This dissertation is the result of my own original work and all sources
available for photocopying and for interlibrary loan, and for the title and
Ning Yang
November, 2009
1
ACKNOWLEDGEMENTS
The successful completion of this research would not have been possible
Judith Dyer, for her professional revising and editing the dissertation.
2
ABSTRACT
and market their institutions. At the mean time, universities around the world
students.
The results show that prospective overseas students do indeed use the
internet. Overall evaluation of the factors influencing the use of the internet
leadership.
3
TABLE OF CONTENTS
DECLARATION.............................................................................................i
ACKNOWLEDGEMENTS.............................................................................ii
ABSTRACT...................................................................................................iii
TABLE OF CONTENTS................................................................................iv
LIST OF TABLES..........................................................................................x
LIST Of
FIGURES...........................................................................................xi
CHAPTER 1
1.4.1 Introduction................................................................................ 4
1.4.2 Conceptualisation......................................................................... 5
1.5 S I G N I F I C A N C E O F T H E
R E S E A R C H … … … … … … … … … … … … . . . . . . 8
4
1.6.4 The internet....................................................................................11
CHAPTER 2
INTERNET MARKETING
2.1 INTRODUCTION.............................................................................15
INTERNATIONALIZATION DECISIONS.......................................18
2.4.2 Macro-environment.....................................................................20
5
2.5 THE INTERNET AS A GLOBAL RESOURCE..................................27
2.6.1 E-mail.................................................................................32
2.6.2 Websites........................................................................................33
2.7
SUMMARY............................................................................................36
CHAPTER 3
HIGHER EDUCATION
3.1 INTRODUCTION.............................................................................37
INTERNET TECHNOLOGIES...........................................................38
3.4 D I F F U S I O N O F
I N N O VAT I O N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7
6
3.5 STAGES IN CONSUMER ADOPTION OF AN INNOVATIVE
SERVICE............................................................................................51
3.6 SUMMARY.........................................................................................54
CHAPTER 4
RESEARCH METHODOLOGY
4.1 INTRODUCTION............................................................................55
4.3 Q U A L I T A T I V E A N D Q U A N T I T A T I V E
R E S E A R C H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 9
4.4 D A T A
COLLECTION...........................................................................60
4.5 Q U E S T I O N N A I R E
DESIGN...............................................................63
4.5.3 Pretesting..................................................................................70
7
4.6 DATA ANALYSIS.............................................................................72
4.7 SUMMARY...................................................................................76
CHAPTER 5
5.1 INTRODUCTION.......................................................................77
5.2 D E M O G R A P H I C D E TA I L S O F I N T E R N AT I O N A L
STUDENTS………………………………………………………………….77
5.3 M A I N FA C T O R S I N F L U E N C I N G C U S T O M E R S U S E O F
A NEW SERVICE…………………………………………………………81
5.3.3 Trust...............................................................................................85
8
5.3.5 Consumer involvement..................................................................89
5.5 SUMMARY.......................................................................................96
CHAPTER 6
6.1 INTRODUCTION..............................................................................98
6.3 C O N C L U S I O N S A N D
6.4 F U R T H E R
RE S E A RCH. .. . . .. . . .. . . . .. . . .. . .. . . .. . . .. . .. . . .. . . . .. . . .. . .. . . .. . . .. . .. . . .. . . . .102
LIST OF REFERENCES..........................................................................103
ANNEXURE.................................................................................................111
9
LIST OF TABLES
10
LIST OF FIGURES
Figure5.6: Trust........................................................................................86
11
CHAPTER 1
1.1 INTRODUCTION
It is now widely accepted that the information technology revolution will have
opportunities to learn and transmit the knowledge of the world (Onkvisit &
Global trends within the field of Higher Education have brought new
struggle to attract new students (Nicholls, Harris, Morgan, Clark & Sims,
1995: 31-8; Soutar & Turner, 2002: 139-46). At the same time, many
universities around the world are encouraging their international offices and
techniques that are universal and those that are unique to a particular
The exploration of the international marketing activity on the internet and the
12
associated emergence of the global information superhighway have a
students can discover information about the university, staff contact details
and enrolment requirements. In the past, this information was only available
Having reviewed the related literature, the researcher found that no research
in Higher Education Institutions via the internet. This will help Higher
13
to be more competitive. This research problem to be addressed in this study
is:
Sub-problems
identified:
technologies?
identified.
14
the use of internet technologies.
investigations.
the aim of addressing the objectives of the research, the research will
1.4.1 INTRODUCTION
Cubillo, Sanchez and Cervino (2006:103) state that most quality attributes in
(Patterson, Romm & Hill, 1998:135-57; Owlia & Spinwall, 1996:15-20). This
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associated benefits, it is difficult for international students to obtain help in
decision making (Maringe & Carter, 2007:461). The complex nature of the
in the course, make this a difficult decision for the international student
(Maringe & Carter, 2007:461). According to (Cubillo et al, 2006: 104), there
are four factors with a total of nineteen variables that influence decision
making. The factors identified are personal reasons, country image, and
Gomes and Murphy (2003:116) state that Higher Education Institutions use
1.4.2 CONCEPTUALISATION
purchase and demands a high level of involvement for customers. This study
Institutions via the internet. In order to address the aim of the study, the
proposed model (see Figure 1.1) suggests that consumer option of enrolling
16
Perceived usefulness (PU) and perceived ease of use (PEU);
17
Figure 1.1
Personal characteristics
I Innovativeness Trust
Perceived
ease of use
Involvement Adoption
Perceived
usefulness
Perceived
Opinion
risk
leadership
(Kamarulzaman, 2007:713).
use, which will increase people’s intention to make use of the service,
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(Kamarulzaman, 2007:713).
(Kamarulzaman, 2007:713-4).
Perceived risk: the more their risk perception of the internet purchase is,
the less their trust will be. Consumers will purchase from a web retailer
(Kamarulzaman, 2007:714).
2007:714).
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1.5 SIGNIFICANCE OF THE RESEARCH
In the higher education industry, e-business could cut the costs and
The internet can provide universities with a low cost gateway to global
abroad.
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1.6 DEFINITIONS OF CONCEPT
To address the aim of the research, the following definitions are given.
focused on the institutions around the world that offer Higher Education. .
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Muhlbacher, Leihs and Dahringer (2006:38) state that “international
foreign countries that reach the marketing objectives and achieve benefit
“internet is the physical network that links computers across the globe. It
between them that are used to hold and transport the vast amount of
services that satisfy the goals of both parties.” Chaffey et al (2006:8) state
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objectives.
This section indicates mainly what the research will be limited to. There are
The research area is in Port Elizabeth, South Africa, and is limited to Nelson
introduce the data collection and data analysis adopted. Below is a brief
Quantitative research and analytical research will be used in this study. Collis
Extensive secondary and primary data sources will be used for this research.
websites. Two chapters cover the use of the secondary sources, which
In terms of primary sources the following aspects are relevant. Primary data
questionnaire that will be drawn up for the purpose. The sample includes
students from South Campus, North Campus, 2nd Avenue Campus and the
Editing, coding and tabulation are the ways to set out all the colleted data. A
mean, median and mode can be used to determine the skewness of the data.
describe how the data is clustered around the mean or central value
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1.8.4 RESEARCH INSTRUMENT
population does not have an equal chance of being selected. It is also called
convenient. The following step of solving ‘n’ sets of raw data is data
reduction which is used for collating the data obtained from the completed
questionnaires into a form that the researcher can use (Ferreira, 2005:97).
Chapter 1 will introduce the research purpose and background and the
marketing environment.
Chapter 3 will provide greater clarity on the factors influencing the choice of
Chapter 4 will focus on the data collection method and primary data sourcing
techniques.
Chapter 5 will present the major findings resulting from the empirical study.
2.1 INTRODUCTION
The HEIs are facing the global competitive situation. As trade barriers are lowered,
new growth opportunities in foreign universities open up and new markets may be
entered. Foreign competitors enter local markets and challenge the local universities.
A university with a narrow view of its capabilities and its market will fall short. In order
to be competitive, it is very important for HEIs to enter the global market. This
research explores how HEIs recruits international students via the internet, websites
and e-mail.
This chapter addresses the who, what and how of international marketing by giving
international marketing, and other related definitions. The following section will focus
introduced and for the purpose of the current study, internet usability which provides
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conception, pricing, promotion and distribution of ideas, goods, and services to
Muhlbacher, Leihs and Dahringer (2006:38) state that “international marketing is the
A system which explains the relationship between the organization and its
balanced.
stakeholders
27
Table 2.1.
TABLE 2.1
DECISIONS
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(Muhlbacher et al, 2006:35-37). External and internal stimuli conclude the first
(1) External stimuli include “unsolicited orders from foreign customers, perceived
home markets that it decided to enter the less competitive markets of German and
(2) Internal stimuli may include “unique products, strong marketing skills, or excess
(Muhlbacher et al, 2006:36). For example, when South African universities enter the
the good weather, environment, and English teaching systems attract Chinese
(3) Defensive motives may be to focus on “protecting domestic market share from a
or profit” (Muhlbacher et al, 2006:37). When the foreign competitors enter the local
Some management still follows the traditional lines of business being satisfied with
business.
(4) Offensive motives may respond and attack foreign competitors in their strong
organizations start using this system. This situation will motivate HEIs to respond to
29
the opportunity changing its computer management system and in the meantime
the following sections, the researcher is going to discuss how these market
Macro-environment
e.g. economy, technology, culture, legistration, political system, infrastructure,
education
Operating environment
e.g.customers, intermediaries, suppliers, competitors, workforce,
media, administration, pressure groups
Internal environment
Corporate policy
Portfolio strategy
Competitive strategy
Management system
Capabilities
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Decision makers
2.4.2 Macro-environment
the universe in which the operating environment of the firm is embedded. Macro-
The political environment copes with the politics of more than one nation. According
criterion for the assessment of market attractiveness under the following conditions
won’t come to study in a country if the country’s politics is not stable. Political
system can be related to the country’s reputation, safety, ease of visa processing
reputation, safety, ease of visa processing and visa cost influence the students in
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The firm’s business requires big investments, such as in the oil business, which
For example, South Africa has a stable, comfortable political environment, especially
Port Elizabeth, which has good weather and a safe environment. The HEIs in that
city with their own competitive advantages attract many international students to
study there.
The economy of the country is the major part of the company’s macro-environment.
overseas institutions; it also enhances the country’s image and institution’s image. As
a matter of fact, there is a development level and a city dimension related to the
country’s image. For example, Cape Town University is located in the city of Cape
Town, is home to millions of people who work in shipping, tourism and the services
sector. The faculty of Health Sciences at UCT has the oldest medical school in
southern Africa. Its campus extends from the teaching hospitals, Groote Schuur
Hospital where the first heart transplant was performed and the Red Cross
Children’s Hospital to numerous others. This attracts a lot of students in making the
decision to study heart disease at this university. The natural resources available in
Cape Town enhance the institution’s image, especially for the students who want to
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According to Muhlbacher et al (2006: 93) human, the natural and technical resources
are main factors that affect a country’s economic wealth. These resources enable a
country to produce competitive goods and service and offer them to other countries
in order to create a variable market for such goods. Human resources are the most
important factors that influence a country’s economic wealth. These are defined by
growth rate are two main factors that attract many international marketers.
related to the demand of certain products and the availability of labour. For example,
China and India. The two countries together represent 70per cent of Asia’s
population and close to 40per cent of the population of the world. Therefore, there
must be a large number of prospective international students who are willing to study
minerals, water and waterpower, oil, coal or gas, and the country’s climate and
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South Africa is located on the edge of a bay with magnificent beaches and rich
marine resources. Nelson Mandela Bay guarantees a quality of life second to none
while providing the students with a gateway to the world. The HEIs in P.E. offer
students with the management expertise to conquer these challenges. These rich
natural resources significantly offer the students who study environmental science,
botany and nature conservation with a diversity of places, animal and plant life. The
environment
institutions, who have a passion for concentrating on the behaviour and performance
banks, media, trade unions, and other so called stakeholders of the company
from the major competitors at a profit, and assess its market independently from the
competences to build and sustain the company’s advantages, and work on negative
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differences (weaknesses) to overcome their potential impact on the success of the
company. These are the factors shown in Figure 2.3 which influence international
marketing success.
Capabilities
Capabilities are the internal factors that determine a company’s potential for
capabilities can be described as “the specific blend of the skills of its personnel times
For example, The University of Port Elizabeth, the Port Elizabeth Technikon and the
Port Elizabeth campus of Vista University merged to form The Nelson Mandela
Metropolitan University and thus is now able to offer the best capabilities for the full
from diploma through to doctoral level. Academic programmes are offered in seven
faculties: Arts, Business & Economic Sciences, Education, Engineering, the Built
Environment & Information Technology, Health Science, Law and Science. VWSA
where local students will have the chance in practical training in German
The university has a strong track record in both fundamental and applied research,
working extensively in partnership with business and industry. In its first three years
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NMMU has concluded several high-level research and development partnerships
Skills
The skills which match the company’s personnel and the expectations and
person’s skills are built on his blend of knowledge and activity and the proper
Motivation
environments which are based on the dominating values and social norms that form
the firm’s corporate culture” (Muhlbacher et al, 2004:224). For example, the HEIs’
Resources
support to students. International students have access to the full range of services,
but find particular value in the language and computer courses and facilities. Most of
the HEIs offer comfortable student accommodation on all campuses and off-campus.
the students’ convenience. The Library which is a place where students can read,
study and have access to information services is another important resource for
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international students.
The company decision makers in a firm play their role as part of an organization
which has an implicit, if not explicably stated corporate policy that lays out the
as well as the capabilities and combinations of personal skills and resources that
up of these elements.
HEIs have the capabilities that determine their potential for international marketing
success. It is a HEI for developing people that meets the challenges of nurturing
innovation, fostering creativity, and enhancing technology. Each has its own
resource with substantial additional room for growth. According to Hanson and
Kalyansm (2007:14), approximately 15 per cent of the world’s 6.3 billion population is
online. This means nowadays that the internet is part of our life; people can use the
internet anytime and anywhere. Table 2.2 shows the top 15 countries for internet
access. Nowadays the internet is a necessary tool for marketers who want to enter
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TABLE 2.2: TOP OF 15 COUNTRIES FOR INTERNET ACCESS, 2004
Organizations develop numerous different ways in which the internet can be applied
communication tool, which enhances the chances of the connection between the
international students and HEI. Internet-based media offer many opportunities for
In this section, the researcher is going to review some of the different definitions to
help explain what internet is. According to Hamill (1997: 302), “the internet is a
38
network of networks, enabling millions of smaller computers to share information with
resources.”
In this study, the internet is the application by which consumers collect information
and are able to contact organizations. The study explores how the HEIs use internet
students use the same technology in their decision-making process. The HEIs
information.
The internet brings a range of benefits for consumers. Table 2.3 defines the five Ss
of e-marketing which suggest five broad benefits or reasons for adopting e-marketing
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once per month) to
30per cent
Speak-Get closer to This is creating a two- Grow e-mail coverage to
customers way dialogue through 50per cent of current
web and e-mail forms customer database
and polls and Survey 1000 customers
conducting inline market online each month
research through formal Increase visitors to
surveys and informally community site section
monitoring chat rooms by 50per cent
to learn about them.
Save-Save costs Achieved through Generate 10per cent
online-mail more sales for same
communications, sales communications budget
and service transactions Reduce cost of direct
to reduce staff, print and marketing by 15per cent
postage costs through e-mail
Increase web self-
service to 40per cent of
all service enquiries and
reduce overall cost-to-
serve by 10per cent
Sizzle-Extend the brand Achieved through Improve branding
online providing a new metrics such as : brand
proposition and new awareness, reach,
experience online while brand favorability and
at the same time purchase intent
appearing familiar
Source: Adapted from Chaffery et al (2006:15)
Through internet marketing, international students and HEIs can benefit much more
than before. Firstly; prospective students are able to search for information quickly
with no time limitation. The internet is convenient. Secondly; HEIs also create
benefits online or inform product online dialogue and feedback for international
students. Thirdly; HEIs get closer to international students. They can carry out
market research through surveys and by informally monitoring chat rooms to learn
about them and also contact them online through PR. Fourthly; the internet saves a
lot financially for both international students and HEIs through online mail instead of
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2.5.3 Principle problems in marketing via internet
The internet creates several opportunities for marketers that can reach a range of
new potential markets worldwide, where cultural, legal, and social systems differ
from those in the local market. In the meantime, it also presents a lot of problems in
this new environment. Palumbo and Herbig (1998: 256-260) state several main
problems as follows:
Cultures of different countries must be taken into account when marketing on the
web. For example, language and the country’s images and colours have different
Customers show that the level of personal information and concern with privacy
important. When applying to HEIs to study, personal details and credit card
The security of financial transactions is one of the most common worries when
creating efficient and trustworthy online commerce which occurs over the
network.
Credit cards are the most useful tool as a way of payment by internet. However,
The internet provides effective communications with foreign customers (actual and
41
internationalization (Hamill, 1997:307). The internet provides various ways for
2.6.1 E-mail
According to Reedy and Schullo (2004:122), e-mail stands for electronic mail. It is
designed for personal and business communications through the internet. E-mail
becomes the most prevalent communications tool for exchanging messages at local,
request. One of the purposes in this study is to find out the effectiveness of HEIs e-
The importance of e-mail stems from several sources. According to Hanson and
mail has evolved to include more functions and web-like capabilities, making it a
Most people’s first encounter with the internet is via e-mail which represents the
communication tool for contacting the HEIs. It is easy, fast and convenient. Students
don’t have to contact the HEIs during office hours, or call them in order to collect
information. They can e-mail whenever they want to. E-mail provides international
42
students with a direct communication route that allows them get closer to more
2.6.2 Websites
Websites are mostly used as a business tool, and are designed to meet the needs of
important to find out the quality of HEIs’ website in order to gauge whether it is
Ease of use;
Design quality;
Visibility
The issue of visibility is the one that is easy for the inexperienced to ignore.
three ways: by typing in its address; by following a link from another site; or by
following a link from a search engine. Some search engines such as Yahoo! have a
large number of human site reviewers. For the NMMU internet to be effective for the
students to use, the address of the site must be submitted in order to have it
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Usability
Web usability is the extent to which a product can be used by the marketers to
context of use (Karat, 1997: 33-8). It is as important an issue for a website, as it is for
any piece of software to be user friendly and the website used for the purpose that
the owner intended it. According to Hanson et al (2006:224), there are four
categories:
of quality of the site. Hanson et al (2006:225) state that it affects the capability of
the site to achieve its goals of communication and dialogue. When viewing a site
over the internet, users may surf elsewhere if it takes too long to appear on their
screen.
web designers use virtual value activities to provide an organizing framework for
creating valuable information. There are steps of virtual value for different visitor
which can help guide managers in designing appropriate online content. In this
research, NMMU can adapt the virtual value activities to develop its own brand
equity and design appropriate online content. Higher interactively and quality
experience for the web visitors (Hanson et al, 2006:229). Examples include film
44
Design quality
Good website design will necessarily directly attract customers and also represent
the goal of the site, and must be very easy for students to find out the information
that is important. Avoiding design, content, and technology mistakes are what make
a site worthwhile for visitors and improve the reputation of your institution.
Maintaining a website
attention as it contains the current events at the university, bursaries available at the
HEI and the modules in which the students are interested. Thelwall (1999:149)
states that uploading a page to the web server is not a costly or complex operation; it
and a file transfer program implementing the File Transfer Protocol (FTP).
2.7 SUMMARY
environment facing HEIs when wanting to enter the international market. How is the
internet used as an aid when HEIs recruit international students? At beginning of the
chapter, the definitions of international marketing, the factors influencing entering the
analysis were given. It also analysed the internet’s usability, which is divided into two
45
Individual adoption of innovation and organisation and adoption of innovation will be
46
CHAPTER 3
3.1 INTRODUCTION
marketers found that the service of enrolling in HEIs via the internet plays an
what elements affect the international students’ choices on enrolling in HEIs via the
internet. To address these elements, the following points are going to be identified.
Firstly, the factors that influence international students in enrolling in HEIs via the
perceived risk and trust. Secondly, the topic of enrolling in HEIs via the internet will
of the innovation and the diffusion of innovation in the whole population. Lastly, the
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3.2 FACTORS DETERMININIG CONSUMER ADOPTION OF THE INTERNET
TECHNOLOGIES
The development of enrolling in HEIs via the internet is crucial to the success in
are seven factors that determine the consumer adoption of the internet technologies;
consumer innovativeness and opinion leadership, perceived risk and trust. These
and actual behaviours derived mainly from research into the purchase of technology
usefulness and perceived ease of use in order to improve explanation and predictive
power (Taylor & Todd, 1995:145-77). The seven factors will be explained as
following:
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FIGURE 3.1
Personal characteristics
Innovativeness ov
Trust
Perceived
ease of use
Involvement
Adoption
Peceived
usefulness
Perceived
Opinion risk
leadership
time, marketers expand the benefits by offering additional facilities and services
such as online order tracking services, free trials, membership rates and last
49
expects the target system to be free of effort” (David et al, 1989:985). In
designing a travel website, marketers should promote the simplicity of using the
institutions and students are able to use the internet technologies with little or no
interfaces are vital, as they might lead to increased involvement levels and finally
are involved in e-shopping processes and activities, the more trust they are likely
involved with online business, the less risk they are likely to perceive in relation
to this medium.
as the desire to seek out arousal and novelty from new products (Hirschman,
50
innovativeness, domain-specific innovativeness, and innovative behaviour.
consumer innovators.
2006:195)
from the mass media or other marketing sources and passing that information on
51
observation. International students who are likely to accept advice from friends or
search for information from mass media have intention behaviour to use the
of the likelihood that those outcomes will occur (Mowen, 1987: 74). Perceived
loss, psychological loss, time loss, performance risk, and social risk. When
consumers have low perceptions of risk they have low involvement in terms of
risk and therefore they will appreciate the perceived usefulness of the product
features (e.g. audio, video, 3D pictures). These features could enhance interest
and get people involved in online shopping by encouraging them to visit the
website regularly.
facing decisions that carry risk.” Online trust plays a key role in creating satisfied
(Gefen, Karahanna & Straub, 2003:51-90). Trust can help to mitigate customers’
online (Lee & Turban, 2001:75-91; Mcknight & Chervany, 2002:35-59) and
52
encourage them to participate in online activities. The more trust in online
business, the lower customers’ risk perception will be. If the customers have low
online business more and as a result will be more likely to adopt online business
(Kamarulzaman, 2007:711).
choices of enrolling in HEIs via the internet; namely perceived usefulness, perceived
Making use of internet marketing is relatively new and HEI’s have to be innovative. It
will serve a useful purpose therefore, to explore the nature of innovation to aid those
Hoyer and Maclnnis (2007:423) state that services can be innovations, as in the
phones. This research explores how international students use internet technologies,
websites and e-mail, to enroll in HEIs which is a new service in the market. It
changed the way we use services. International students no longer have to mail the
HEIs to contact them to collect information. Chapter 2 also explained that the ways
the new service changes how people use services. The diffusion of innovations help
53
individual or group” (Neal, Quester & Hawkins, 2004:471). Hoyer and Maclnnis
innovation may be a completed new product that provides benefits never available
innovation is anything that consumers perceive as new and different. In this study,
the internet.
Innovations differ in their degree of newness, which depends on the target market’s
ranges along a continuum that goes from a very small change in an existing service
learn anything new to use a continuous innovation. It means it is usually fairly easy
moderate importance to the individual; for example, the digital camera, and personal
navigator.
54
3) Discontinuous innovations: Solomon et al (2008:249) propose that a
discontinuous innovation creates major changes in the way the people live. It
In this research, the researcher proposed the service of enrolling in HEIs via the
internet as a discontinuous innovation because this type of service changed the way
the people shop and allowed more people to work from home or anywhere else. To
start with consumers have to learn how it works and what benefit it has for people.
contain perceived value, benefits and costs which are explained in detail below.
Perceived value: consumers perceive that an innovation has value which gives
greater benefits or lower costs than existing alternatives. Services with high
perceived value are more readily adopted by consumers than those with low
401) propose that there are certain competitive advantages that can benefit the
perceived relative advantage, that is, the extent to which it offers benefits
55
Perceived costs: the consumer always perceives two types of costs. One is the
actual purchase cost. The higher the purchase cost, the greater the resistance
and hence the slower the diffusion. The other cost is switching costs, which
involves in changing from the current service to a new one. When the internet
changed. In some developed countries, the internet is almost free, and the new
service is almost free when switching from the old service. In some developing
Diffusion of the innovation helps to explain the adoption of innovation. Hoyer and
Maclnnis (2004:491) state that diffusion is the percentage of the population that has
cellphones in some developed countries, cellphones are used by more than half of
the population; however, in some other countries the diffusion of cellphones is just
Diffusion process is the manner in which a new service is accepted by, or spreads
through, a market. Consumers and business customers differ in how much they
would like to try something new, lengthening the diffusion process by months or even
56
years. According to Neal et al (2004:476), diffusion process is classified into five
categories; innovators, early adopters, early majority, late majority and laggards.
innovators. They tend to be younger, better educated and more socially mobile
than local peers as a reference group (Neal et al, 2004:476). They are the first
2.5 per cent of adopters. This segment is extremely adventurous and willing to
innovative service early in the diffusion process but not as early as innovators.
Hawkins, Best and Coney (2004:253) state that early adopters have tendencies
adopters are very concerned about social acceptance therefore they like to
gravitate toward products they believe will make others think they are
Early majority: they are socially active but seldom leaders, who are next to
adopt an innovative service after the early adopters. They tend to be somewhat
older, less well educated and less socially mobile than the early adopters (Neal
et al, 2004:477-478). Hawbins, Best and Coney (2004:252) propose that early
Late-majority: roughly 34 per cent of adopters are older and even more
57
Laggard: about 16 per cent of adopters are the last of the population to adopt a
new service. Laggards are typically lower in social class than other adopter
categories and are bound by tradition. By the time laggards adopt a service, it
identified 10 characteristics of innovations that affect the rate of adoption. These are
type of group, type of decision, marketing effort, fulfillment effort of felt need,
risk. The last five are considered the most influential and are the most often quoted
in the literature. Solomon et al (2008:262) argue that there are five characteristics of
1. Type of group: a group with young, highly educated, affluent members is more
accepting of change than others (Neal et al, 2004:475). In this research, the
research sample is focused on the students with higher education who are
young, highly educated and t are more accepting of the innovative service than
other groups.
decision. The fewer individuals involved in the decision, the more quickly the
innovation will spread in the population (Neal et al, 2004:475). The internet
service is only related to the person who wants to use it; therefore it involves one
58
3. Marketing effort: the rate of diffusion is heavily influenced by the extent of the
marketing effort involved (Neal et al, 2004:475). That is, the rate of diffusion is
4. Fulfillment of felt need: the more manifest or obvious the need the innovation
satisfies, the faster the diffusion (Hawbins et al, 2004:250). The internet service
offers a lot of features that satisfy the users much more than regular home
computer users. The internet users can e-mail anytime and anyplace and collect
service changed people’s lives. People used to write letters and send hand
picked cards to loved ones; these have become a thing of the past. Nowadays,
people can go shopping online, pay bills, manage bank accounts or book a
use difficult to understand. The internet is a highly complex product. The internet
8. Observability: the more easily consumers can observe the positive effects of
adopting an innovative service, the more rapid its diffusion will be. It seems that
9. Trialability: the ease of sampling an innovative service and its benefit. It is easy
to sample the service and its benefit via the internet if consumers have
59
knowledge of computers, otherwise it is a little bit difficult to show the customers
10. Perceived risk: the higher the degree of risk associated with trying an
innovation, the slower the diffusion (Neal et al, 2004:475). Risk related to the
internet is mostly financial risk. The internet users are afraid of losing bank
account and personal details. Nowadays people around the world are all using
the internet. Users only have the internet transactions perceiving e-commerce as
loyal adopters. The stages through which the consumer passes before adopting an
are shown in Figure 3.2. The right marketing strategies at each stage help ensure a
successful adoption.
a) Awareness: information about the existence of the innovation and its unique
characteristics are the first step in the adoption process. Aggarwal, Cha and
Wilemon (1998:365) state that inaccessibility or lack of information may cause the
consumers are made aware of the new service, there is significant potential that they
b) Interest: during this stage, a prospective adopter begins to see how a new
60
the consumers lack the knowledge and inability to appreciate the relevance of
attributes and benefits of a new service, they do not actively search for information
related to a new product (Aggarwal et al, 1998:365). Enrolling in HEIs via the internet
situations who use the internet service. Therefore, in this study the researcher
focuses on the international students who are well-educated and are therefore more
c) Evaluation: weighing the costs and benefits of the new service. Some potential
adopters will evaluate an innovation positively enough to move on to the next stage.
One of most difficult things for consumers is finding ways to evaluate the new service
functional, social, financial, and/or personal risk, and then create trust in the service
d) Trial: the stage when customers really experience or use the service for the
first time. Marketers always stimulate trials by providing opportunities for customers
to sample the product (Solomon et al, 2008:259). Sometimes even if the trial is
satisfactory some potential adopters still won’t actually adopt the new service
because it costs too much. In this research customers don’t have to worry about the
cost of the service. In comparison to the old service, the new service is perceived to
f) Confirmation: after using the new service, customers weigh the expectation of
the new service against the actual benefit and costs. Consumers can be become
loyal adopters when they enjoy using the new services and have favourable
61
technologies as one of the tools of their everyday lives. They use it everywhere and
any time.
FIGURE 3.2
Six stages
Massive Awareness
advertising
Adoption
Making the product
available, providing
product use information
Confirmation
Reinforcing the customer’s choice
through advertising, sales promotion,
and other communications
3.6 SUMMARY
conceptual framework for the empirical study. The literature study focused on the
The internet technology as a new service was accepted by the students. The
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research explores whether the internet is still accepted as a tool for international
students to enroll in Higher Education Institutions via the internet. Firstly, factors
influencing the adoption of a new service were proposed. Secondly, the researcher
identified the definition of new service, its categories which were continuous
adoption of a new service were explained. The empirical findings and the verifying
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CHAPTER 4
RESEARCH METHODOLOGY
4.1 INTRODUCTION
empirical study which addresses the research objectives. This chapter mainly solves
A good research design can ensure the research project is effective and efficient. A
research design specifies the details of the procedures necessary for obtaining the
research. The following sections will explain the three research design in detail.
about the general nature of the research problem.” Malhotra (2004:75) states that
exploratory research is used in cases when the researcher needs to define the
problem more precisely and identify relevant courses of action, or gain additional
insights before an approach can be developed. An exploratory study is used for any
or all of the following purposes (Churchill & Iacobucci, 2005:77; Cant, 2003:28;
64
Malhotra, 2004:76):
hypotheses
research
Clarifying concepts
study. It is also the foundation for a good study. Exploratory research is used in a
the problem has not been clearly formulated, exploratory research may be used
The exploratory research methods are highly flexible, unstructured and qualitative
(Aaker, Kumar & Day, 1998:73). There are a variety of methods available to conduct
65
For the purpose of the study, it is important to start gaining information about the
choices of HEIs using the internet (website and email) to recruit prospective
international students and the factors influencing the international students using the
research, the information provides support to meet the research objective or assist in
design.
states that descriptive research is a type of conclusive research which has as its
phenomenon studied (Churchill & Iacobucci, 2005:107). There are two basic
Descriptive studies are systematic, and fixed in format and structure. The research
(Malhotra, 2004:80).
66
choices of enrolling in HEIs via the internet; namely, perceived usefulness, perceived
manipulated and the effects of other relevant variables are controlled. Causal
research is appropriate for the following purposes, which are defined by Malhotra
(2004:85) as follows:
To understand which variables are the cause (independent variables) and which
To determine the nature of the relationship between the causal variables and the
Hair, Bush and Ortinau (2003:42) state that causal research can be used to
understand the functional relationships between the causal factors and the effect
purpose of the study, causal study will focus on the relationship between the factors
influencing the use of the internet to enrol in the HEIs and its adoption in the market.
67
4.3 QUALITATIVE AND QUANTITATIVE RESEARCH
After the research problem is defined and clearly specified, the research effort
logically turns to data collection. During the data collection, there are two research
methods often used; quantitative research and qualitative research. Cooper and
seek to describe, decode, translated, and otherwise come to terms with the meaning,
not the frequency, of certain phenomena.” Burns and Bush (2003:204) define
the response options have been predetermined and a large number of respondents
involved.”
statistical data analysis skills is the main goal of quantitative research (Hair, Bush &
differences between the two research methodologies are summarized in Table 4.1
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Sample Small number of Large number of
nonrepresentative cases representative cases
Data Unstructured Structured
collection
Data Nonstatistical Statistical
analysis
Outcome Develop an initial understanding Recommend a final course of
action
Adapted from Malhotra (2004:137).
For the purpose of the study, quantitative research is appropriate to evaluate the
is also collected data from a large number of international students at the NMMU.
In this section, the methods used in the quantitative research in the current study will
be explained within the context of a literature review. Four types of survey will be
discussed in the following study, which are personal interviews, telephone interviews
1) Personal interviews
asks questions and records the subject’s answers. Personal interview has the ability
to explore topics in great depth, achieve a high degree of interviewer control, and
provide maximum interviewer flexibility for meeting unique situations (Cooper &
Door-to-door interviews
69
homes. This was at one time thought to be the best survey method. It is a
(Mcdaniel & Gates, 2007:170). An interviewer is able to help the respondent skip
instructions. A skilled interviewer can work wonders from sensitive data which
Executive interviews
on topics they know little about. Executive interviews have the same advantages
Mall-intercept interviews
products or services. The survey may take place in a common area of the mall or
in the researcher’s on-site offices (Hair et al, 2003:260). This type of interview is
more efficient when the interviewer comes to the respondent than the other way
around. It always has high response rates, just slightly lower than a door-to-door
expense as the only travel costs for an interviewer are those to the mall.
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2) Telephone interviews
telephone technology. It is cheaper, faster and more suitable for collecting data from
large numbers of respondents than any other survey method (Hair et al, 2003:260).
There are three basic approaches to obtaining telephone numbers when selecting
3) Self-administered surveys
reads the survey questions and records his or her own responses without the
presence of a trained interviewer (Hair et al, 2003:265). There are three types of self-
telephone and personal interview surveys (Cooper & Schindler, 2006:282-292). Self-
administered surveys of all types typically cost less than surveys via personal
interviews. Telephone and mail costs are lower if in the same general range.
problem so that the researchers can analyse and interpret the data in order to have a
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questionnaire can engage the respondent and stimulate his/her interest in providing
The questionnaire used in the current study is directed at international students who
The first stage: an introductory covering letter which gives the essential
introduction of the research project and the research to the respondent and
The second stage: deals with the demographic information about the
respondents. Which countries they come from and for what course they are
The third stage: here the overall plan of the research is defined and includes an
outline of the main areas of questioning. The following sections will explain the
details clearly.
fixed set of choices) or unstructured (researchers do not limit responses but provide
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Unstructured observation is used for the research in which the formulation of the
problem is not specific; there is more flexibility for the observers in terms of what
they note and record. Unstructured observation is well suited for exploratory
when the research objectives are defined precisely enough to clearly specify the
behaviours that will be observed and categories that will be used to record and
analyse the observations. It can be quite precise (Churchill & Iacobucci, 2005:229)
Parasuraman et al (2007:285) state that the effort, time and space required to
aids the smooth completion of the rest of the interview. In doing so the respondents
are more likely to form a favourable attitude towards the interviewer, and be more
willing to answer the remainder of the questions. A trained interviewer must choose
the type of the question intelligently in order to obtain the research objectives
The questionnaires in the current study followed both the structured and
students in NMMU). Question contents included gender, age, home country and
major for registration at the university. Section B consisted of 25 Likert scale closed
clues to the factors effecting the adoption of a new service. Respondents had to
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indicate the level of the agreement of the statements with responses that ranged
from (1) strongly disagree to (5) strongly agree. Section C also followed a structured
Generally, there are two main types of questions which are commonly used in a
Closed questions are structured questions which specify the set of response
a) Multiple-choice question
Respondents are able to choose from a range of alternatives given, which are
respondents are able to differentiate between them without difficulty. Multiple answer
lists generally include a coding (‘other’) for unusual answers, which should be
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FIGURE 4.1 QUESTIONNAIRE CONTINUUM
questions always have, because the interview bias is reduced and these questions
are organized quickly. Coding and entering data into Excel are much less costly and
questions more easily if the majority of the questions are structured (Malhotra,
2004:291).
b) Dichotomous Questions
The dichotomous question is also a fixed-alternative question but one in which there
are only two alternatives (Churchill & Iacobacci, 2005:246). The dichotomous
questions are very easy to code and tabulate for the respondents and are also the
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Have you used the internet for information about different overseas Higher Education
institutions before?
A YES B NO
c) Scaled questions
A scaled question is one where the multiple choice alternative provided gives some
four kinds of ratings for scaled questions; graphic rating scales, semantic differential
Graphic rating scales have a vertical or horizontal continuum and the respondent
with a seven point scale in between. This type of question is useful in providing a
76
Internet service quality
Good Bad
Efficient Inefficient
Stapel scale
Stapel scale is similar to the Likert scales except that the pairs of descriptions are
replaced with a single phrase and there are ten scale positions e.g.
+5 +5
+4 +4
+3 +3
+2 +2
+1 +1
-1 -1
-2 -2
-3 -3
-4 -4
-5 -5
Likert scales
Likert scales are used to obtain people’s attitudes about something by asking them
current study, 25 Likert scales questions are used in this research in section B e.g.
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4.5.2.2 Open-ended question
which will give a sense of the respondent’s frame of reference (Churchill & Iacobucci,
2005:243).
Respondents can talk freely to express their views. Their opinions and explanations
can provide rich insights to the interviewers (Malhotra, 2004:289). The major
and time consuming. No open ended questions were used in this study
4.5.3 Pretesting
The purpose of a pretest is to ensure that the questionnaire meets the researcher’s
problem.
The collection and analysis of the data will proceed as smoothly as possible.
which lack important variables, request for explanations, doubts, ambiguous, ill-
78
(AAker et al, 1998:323). Effective pretesting demands that the researcher be open to
There are some research concerns about the questionnaire as a whole, such as the
order of questions. Others concerns that should be pretested are the following:
Flow of the questionnaire: the questions must appear in a logical sequence and
be part of a coherent flow. Pretesting is to ensure that the transitions from one
Skip patterns: the skip questions are dependent on the answer to a previous
question. Whether the skip patterns are followed by the respondent or by the
Length: each section of the questionnaire should be timed to ensure that none of
et al, 1998:325).
part in the pretesting of the questionnaire. After feedback, a few minor adjustments
Sample design is an integral part of the total research design and contributes
significantly to its integrity. The success of research surveys rests largely on the
quality of the sampling, and great care is needed at every stage in the development
79
of suitable samples. For the current study, the target population was focused on the
sampling and snowball sampling. Probability sampling procedures are those in which
each element of the population has a fixed probabilistic chance of being selected for
the sample. Commonly used sampling techniques are simple random sampling,
For the purpose of the study, convenience sampling and cluster sampling were
2005:110). Cluster sampling is much cheaper and quicker since the interviews are
concentrated in a localized area which reduces travel time and expense. For
example, the locations Annis Cove, Omega Lodge and Villages 3,5 and 6 are
connected to the NMMU and are occupied by international students. A small number
cluster sample.
the least expensive and least time consuming of all sampling techniques. The
80
2004:321). For example, the international office at NMMU is also a place where the
convenience sample.
Analysis means placing the collected data into some order or format so that it takes
on meaning. For the purpose of the study, four steps in data analysis were studied;
namely, data preparation, reliability and variability analysis, descriptive analysis and
inferential analysis.
Data preparation is the processes that ensures the accuracy of data and their
conversion from raw form into classified forms appropriate for analysis. The process
of data preparation is tedious and boring, but it is a very important factor in the
accuracy and usefulness of the entire project. The main stages are data validation,
editing, coding and data capture (AAker, Kumar & Day 2007:432-433).
The first step is to determine whether interviews were conducted correctly and free
of fraud or bias. Respondents are asked for their contact details (name, address and
telephone numbers) not to analyse this data but to check that the interview actually
took place. Data validation covers the following five areas which are fraud,
The second step in data preparation is to edit the collected raw data to detect errors
and omissions that would compromise quality standards (Cooper & Schindler,
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2006:509). Each questionnaire is checked for legibility, understandability,
consistency and completeness before the data is captured on the computer. The
editor is responsible for making sure the data are accurate, consistent with other
Coding is the process of assigning numbers and other symbols to answers so that
the researchers can classify the responses into categories (Cooper & Schindler,
The last step is data capture which is the transference of data from acceptable data
steps; namely, clearing the dataset, generating new variables and weighting and
storing.
Clearing the dataset: removing possible coding and data capture errors
another.
Storing: keep a master copy of the spreadsheet in case the original becomes
corrupted.
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4.6.2 Reliability and validity
imbued in the overall design framework of this study. Two basic sets of criteria are
not sufficient condition for validity.” For the purpose of the study the internal
consistency reliability. The Cronbach’s coefficient alpha is used here for calculating.
measures what the researcher actually wishes to measure; and that differences
found with a measurement tool reflect true differences among participants drawn
Descriptive analysis simply describes the data by providing statistical measures like
central tendency (mean, median and mode), measures of dispersion (range and
standard deviation), and measures of position (quartiles, deciles and per centiles)
83
4.6.4 Inferential analysis
Inferential analysis attempts to draw conclusions from the analysis e.g. drawing
conclusion about the likely area in which the population parameter will fall, based on
the value of the sample statistics. Sample statistics can be divided into two
Univariate analysis where only one question will be analysed at a time e.g.
Multivariate analysis where two or more questions are analysed at a time e.g.
4.7 SUMMARY
This chapter gives details about the research methods followed in this study.
surveys are used to address the research problem. Structured questions including
administered surveys. The findings from the empirical study will be discussed in
Chapter 5.
For the purpose of the study, the target population is NMMU international students.
Convenience sampling and cluster sampling were used to select a sample of two
hundred respondents at four NMMU campuses. Four steps were followed to analyse
the collected data; namely, data preparation, reliability and validity analysis,
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CHAPTER 5
5.1 INTRODUCTION
Chapter 4 gives a description about the techniques used in the overall study, which
are data collection methods and data analysis methods. This chapter will present the
findings of the empirical study. Data analysis provides valuable insights and guides
the rest of the data analysis as well as the interpretation of the results.
The chapter begins with a brief description of the demographic information collected
obtained for the each variable in the data. This analysis produces a table of
frequency counts, percentages, and cumulative percentages for all the values
The demographic details collected from international students, the country from
which they come, age, gender, and the faculty they registered in are presented in the
questionnaire.
85
5.2.1 Respondents by countries of origin
than 2000 comes mostly from other African countries (Postgraduate Prospectus,
into four continents; namely, Africa, America, Asia, and Europe (See Figure 5.1).
COUNTRIES OF ORIGIN
1.50%
8.50% 11%
75.50%
origin.
Figure 5.1 represents the percentage of international students per continent in the
university.. The finding above reflects that 75.5 per cent of respondents who
participated in the survey were from Africa; 1.5 per cent of respondents were from
European Countries; 11 per cent of respondents were from Asia; 8.5 per cent were
from America.
86
5.2.2 Respondents by age
AGE CATEGORIES
1%1%
31% under 18
18-21
over 21
missing
67%
Source: Results obtained from analysis of the respondents’ replies regarding age.
The finding above reflects that most international students in the survey are over 21,
which makes up 67per cent of the respondents. The second is the age category 18-
20 which makes up 31per cent of the respondents. Both under 18 and missing data
87
5.2.3 Respondents by gender
GENDER CATEGORIES
41.5%
male
female
58.5%
The pie chart above illustrates that 58.5 per cent of the respondents were males and
NMMU offers seven different faculties; namely Arts, Business & Economic Science,
Science, Law and Science. Table 5.1 illustrates the registered faculty distribution of
international students. 7.5per cent (N=15) of the respondents are Arts students;
28.5per cent (N=57) of the respondents are Business & Economic Science students;
4per cent (N=8) of the respondents are education students; 18.5per cent (N=37) of
the respondents are Engineering, & Built environment & information science
students; 14per cent (N=28) of the respondents are Health Science students; 5per
cent (N=10) of the respondents are Law students; 13.5per cent (N=27) of the
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TABLE 5.1 Registered faculty distribution of students
FACULTY FREQUENCY PERCENTAGE VALID
(N) PERCENTAGE
Arts 15 7.5 8.2
Business & Economic 57 28.5 31.3
Science
Education 8 4 4.4
Engineering, the Built 37 18.5 20.3
environment &
Information science
Health science 28 14 15.4
Law 10 5 5.5
Science 27 13.5 14.8
Missing 18 9 9.9
Total 200 100.0 100.0
Source: Results obtained from analysis of respondents’ replies regarding faculty in
In this section, seven factors which influence customers use of a new service are
consumer involvement, opinion leadership and perceived ease of use. Based on the
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5.3.1 Consumer innovativeness
innovativeness.
80.0% 70.5%
70.0%
60.0%
50.0% 44.5%
41.0%
35.0% Disagree
40.0% 32.0%
Neutral
30.0% 23.5% 24.0%
17.5% Agree
20.0% 12.0%
10.0%
0.0%
Qst 1 Qst 2 Qst 3
arousal and novelty from new products. Kamarulzaman (2007:711) states that the
relationship between consumer innovativeness and use explains that individual traits
90
characterized by a high degree of innovativeness are usually very open to new
experiences and tend to “make constructive use of information received” (Leavitt &
Table 5.4 and Figure 5.4 illustrate that questions 1 to 2 were central tendency, as
one does not know to which side their sentiments were inclined, whether positive or
negative. Thirty-five per cent (35per cent) of the respondents indicated that they
tried new services before other people. Forty-one per cent (41per cent) of
respondents indicated that they have neutral opinion in trying new services before
other people. Twenty-four (24per cent) of respondents indicated that they disagreed
with trying a new service before other people. Question 3 indicates by the high
scores obtained that people agree new technologies do benefit the customers.
influencing international students in using the internet to enrol in the HEIs. Thus,
students with high level of education are expected to use the e-shopping medium
and are more likely to engage in web features when logging on to the internet.
Table 5.3 indicates that perceived usefulness is positively correlated with the use of
applying to the HEI on the internet. High scores for the Questions 4 to 5 were
obtained where respondents both agreed and strongly agreed to the question on
91
results, Table 5.5 and Figure 5.5 indicate that statements and questions are worded
questions.
5. I like to 5 16 13 62 104
search for
information that 2.5% 8% 6.5% 31% 52%
interests me
personally.
10.5% 6.5% 83%
6. The internet 7 7 36 85 65
leads to better
communication 3.5% 3.5% 18% 42.5% 32.5%
between HEI
and me.
7% 18% 75%
7. The internet
is a convenient
way of 6 7 24 75 88
connecting with
HEI for
international 3% 3.5% 12% 37.5% 44%
students
6.5% 12% 81.5%
Source: Results from analysis of respondents’ responses regarding perceived
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FIGURE 5.5 PERCEIVED USEFULNESS
Nowadays, the data collected from international students shows that consumers
5.3.3 Trust
(2005:937-54) state that online trust plays a key role in creating satisfied and
expected outcomes in online transactions. Trust can reduce the worries about the
risk of losing personal information and bank account details as international students
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TABLE 5.6 TRUST
trust
According to Table 5.6 and Figure 5.6 in question 8, a large number of respondents
indicated that they disagreed that a website was a safe medium for financial
transactions. From Question 9 to Question 11 the high scores obtained indicated that
respondents agreed that people usually preferred to use the internet in a safe and
important factor for people when using the internet. In the case study, the analysis
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FIGURE 5.6 TRUST
80.0% 71.5%
64.5%
70.0%
60.0%
45.5%
50.0% 41.5%
40.0% Disagree
40.0% Neutral
27.5%
27.0% Agree
30.0% 18.5%
21.5%
17.5%
20.0% 11.0% 14.0%
10.0%
0.0%
Qst8 Qst9 Qst10 Qst11
Mowen (1987:74) states that perceived risk is a consumer’s perception of the overall
outcomes and of the likelihood that those outcomes will occur. In the case study,
perceived risk is focused on the financial risk and physical risk when the transaction
is processed.
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TABLE 5.7 PERCEIVED RISK
0.0%
Qst 12 Qst 13 Qst 14
Table 5.7 and Figure 5.7 indicate that high scores for Questions 13 to 14 were
96
obtained for the Neutral field. Question 12 indicates the respondents agree that there
will be privacy loss because customers’ information will be used without their
knowledge. Marketers should therefore create ways to reduce the perceived risk and
encourage consumers to make transactions online so that more people may gain
access to the internet. The analysis indicates that the perceived risk is uncertain as a
HEIs.
involvement
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FIGURE 5.8 CONSUMER INVOLVEMENT
Table 5.6 indicates that high scores for Questions 15 to 18 were obtained in both the
fields where respondents agreed or strongly agreed. This indicates a high level of
consumer involvement amongst the respondents who participated in the survey. 84.5
per cent, 84 per cent, 71.5 per cent and 87 per cent of the respondents agreed that
The analysis indicates that based on the convenience of the internet, people are all
highly involved in the online business. The analysis indicates that the consumer
Opinion leadership is the process whereby one person receives information from the
mass media or other marketing sources and passes that information on to others. It
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influences the adoption process by acting as a social role model whose innovative
leadership.
70.0% 64.5%
57.5%
60.0%
50.0%
40.5%
36.5%
40.0% Disagree
30.0% 23.0% 23.0% 24.5% Neutral
18.0% Agree
20.0% 12.5%
10.0%
0.0%
Qst 19 Qst 20 Qst 21
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Table 5.9 illustrates that high scores for Questions 19 to 21 were obtained in the field
of ‘agree’. This indicates a high level of opinion leadership influencing the use of the
new internet service. The analysis indicates that people are likely to be influenced by
others’ opinions. It is a good idea to find out other people’s experiences before trying
a new service.
Perceived ease of use is defined as the degree to which the prospective user
expects the target system to be free of effort. In the case study, international
students all have a higher education and it is not difficult for them to access to the
internet or the target system they require. Marketers of Higher Education Institutions
also develop ease-of-use for the websites in order to enhance the students’
100
information on the 6.5% 16.5% 20.5% 35% 21.5%
NMMU site that I
need.
. 23% 20.5% 56.5%
Source: Results obtained from the analysis of the responses given by the
73.0% 75.5%
80.0%
70.0%
56.5%
60.0%
45.0%
50.0% Disagree
40.0% 30.0% Neutral
25.0% 23.0% Agree
30.0% 20.5%
17.0% 15.0%
20.0% 10.0% 9.5%
10.0%
0.0%
Qst22 Qst23 Qst24 Qst25
Respondents obtained high scores in the category ‘agree’ from Question 22 to 25,
international students in enrolling in HEIs via the internet. The research finding
showed by the high scores obtained by international students that they were easily
able to access information from the website or were able to contact people via the
internet.
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5.4 NELSON MANDELA METROPOLITAN UNIVERSITY
which has a large number of overseas students. From the research done at the
international office results show that there were 2002 international students
registered at the University in 2006, 2028 international students in 2007 and 1845
international students enrolled in 2008 with the NMMU education service provider.
The following questions show how international students apply for entrance to the
university. Table 5.9 indicates that 143 international students, which is 70.9 per cent
of the international students use the internet when searching for information about
students do not use it at all. Table 5.9 indicates that 94.3 per cent of the respondents
visit the NMMU website and 5.7 per cent of the respondents do not visit the website
at all. 43.8 per cent of the respondents accessed the NMMU website through a
search engine. 58.4 per cent of the respondents state that the NMMU website gives
sufficient information.
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* Refer to Annexure A to see what the letters stand for
Table 5.10 indicates that 63.4 per cent of the respondents e-mailed to NMMU to
make further enquire and 36 per cent of the respondents did not e-mail for further
enquiries. High scores were obtained where NMMU replied to the students within
3—5 days, 26.7 per cent of the respondents received a reply within 1—2 days and
19.8 per cent of the respondents received a reply within one day. 84.1 per cent of the
respondents received a reply via e-mail from NMMU. 55.2 per cent of the
respondents indicated that the University’s e-mail response influenced their decision
TABLE 5.11 indicates the key decision maker for the international students’ choices
themselves. 20 per cent of the respondents’ key decision makers were their parents.
5.5 per cent of the respondents’ key decision maker was an independent agency in
their home country or other relatives or friends. 10.5 per cent of the respondents’
decision to study overseas depended on the government of the home country. 1.5
103
per cent and 8 per cent of the respondents’ decision makers are companies they
9. Who was the key decision maker for your choice of a 98 49%
an overseas Higher Education Institution? b 40 20%
c 11 5.5%
d 11 5.5%
e 3 1.5%
f 21 10.5%
g 16 8%
Source: Results obtained by analysis of respondents’ choice of NMMU as a Higher
Education Institution.
5.5 SUMMARY
This chapter reported on the empirical findings of the research. The report was
gender, age, the country they come from, course registered for, followed by an
the data was reduced into seven factors; namely, consumer innovativeness,
leadership and perceived ease of use. The analysis indicates that only consumer
have positive points in influencing international students in enrolling in HEIs via the
internet.
104
By analysing the data collected from the international students, most of the
respondents indicated that they were likely to use the internet to apply to a Higher
Education Institution. In the research completed at the NMMU, 70 per cent of the
respondents indicated they would use the internet to apply to the HEI or use e-mail
Throughout the whole research, the analysis indicates that using the internet brings
lots of advantages; people can contact each other at any time, they are able to
search for information and contact friends and family. Students with a higher
education are more likely to accept the new internet service provided by the
international department.
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CHAPTER 6
6.1 INTRODUCTION
The main objective is to determine the factors that influence the international
students enrolling in a HEI via the internet. In Chapter 5, the results of the research
were interpreted with the intention of presenting the findings of the survey
conducted. This chapter briefly presented a synopsis of the previous chapters and
Chapter 1 began with a brief description of the research design of the dissertation.
Firstly, the researcher presented the research problems, which contained the main
research significance was outlined, followed by the literature review and the
the HEIs via the internet. Important cores were identified and defined to ensure
Chapter 2 and Chapter 3 gave an overview of selected literature related to the topic.
Later in Chapter 2, internet marketing was introduced and the internet usability which
106
supports e-business was studied.
Chapter 3 provided the guidelines for marketers on what elements affect the
international students’ choices in enrolling in HEIs via the internet. The factors which
address these elements are the following; perceived usefulness, perceived ease of
risk and trust. Secondly, the topic of enrolling in HEIs via the internet was defined as
an innovation (new service) existing in the market. Then the categories of innovation,
the characteristics of the innovation and the diffusion of innovation were identified,
and descriptive research were introduced at the beginning of the study. The
appropriate methods of the study were then introduced in the light of the
requirements of the study and self-administered surveys and Likert scale questions
are explained here. Lastly, the data analysis methods of the study were explored in
Chapter 5 gave a description of the results and empirical findings of the study. It
of the variables in the data. The methods were, table of frequency counts,
percentages and cumulative percentages for all the values which were used to
107
6.3 CONCLUSIONS AND RECOMMENDATIONS
Chapter 5 introduced the empirical findings of the whole study. The purpose of this
chapter is to conclude with the remarks on the survey based on the finding of the
literature and the empirical study, so far as to provide recommendations for the
international students.
As discussed in Chapter 3, there are seven factors namely, perceived risk, perceived
enrolling in the HEIs via the internet.. Chapter 5 analysed to what extent these seven
factors affect the use of the internet. Therefore analysis of the seven factors is critical
Overall evaluation of the factors influencing the use of the internet for enrolling in the
consumer involvement, perceived ease of use and opinion leadership. These factors
As predicted, both perceived usefulness and perceived ease of use were positively
correlated with the adoption of enrolling in HEIs via the internet. The relationship is
expected, as many previous studies have found the same effects of perceived ease
108
influencing the international students enrolling in the HEIs via the internet. E-service
adopters use website resources that are perceived to be useful and easy-to-use
adopting internet services. Thus, perceived ease of use and perceived usefulness
behaviour.
Consumer involvement
adoption explains that individual traits are as important as perceived usefulness for
Opinion leadership
with the adoption of new service, which eventually demonstrates a strong effect on
The empirical model resulting from the current research shows high validity and
reliability for evaluating the factors influencing the NMMU international students in
enrolling in HEIs via the internet. Its future applications are not limited to the NMMU,
109
but are appropriate for assessing the factors influencing the NMMU international
This study targeted only 200 international students at the NMMU. It is recommended
different universities’ in the adoption of e-service in enrolling in HEIs via the internet
110
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ANNEXURE – International students’ questionnaire cover letter
4 Gomery Place
Summerstrand
6001
Port Elizabeth
June. 2009
Dear Sir/Madam
This survey is conducted in fulfillment of a Master Degree in Business Administration
for which I am currently enrolled at Nelson Mandela Metropolitan University. The
purpose of the questionnaire is to find out the factors influencing the international
students’ choice of enrolling at the Higher Educational Institutions via the internet.
It would be appreciated if you could complete the attached questionnaire, and your
information will be treated confidentially. Please complete the questionnaire as
honestly as possible and please ensure that you have answered all the questions.
Ning Yang
119
Section A: Demographics
Section B
Please indicate the extent to which you agree or disagree with each statement below. Note
that 1=strongly disagree, 2=disagree, 3=neutral, 4=agree, 5=strongly agree.
N Questions
o
Factor 1 Innovativeness Strongly
Strongl
y
disagree agree
1 I am usually among of the first to try out a new 1 2 3 4 5
service.
2 I often try new services before my friends do. 1 2 3 4 5
3 New technologies on the website are beneficial for 1 2 3 4 5
customers.
Factor 2 Perceived usefulness
4 Surfing on the internet keeps me up-to-date with the 1 2 3 4 5
latest information.
5 I like to search for information that interests me 1 2 3 4 5
personally.
6 The internet leads to better communication between 1 2 3 4 5
HEI and me.
7 The internet is a convenient way of connecting with 1 2 3 4 5
HEI for international students.
Factor 3 Trust
8 I trust the website as a safe medium for financial 1 2 3 4 5
transaction.
9 One should be very cautious when transacting on the 1 2 3 4 5
website.
10 I use the internet when I think it is safe. 1 2 3 4 5
11 I am prepared to give my personal information to HEI 1 2 3 4 5
when I apply on the internet.
Factor 4 Perceived risk
12 The internet will lead to a loss of privacy for me 1 2 3 4 5
because my personal information would be used
without my knowledge.
13 Depending on the expected level of quality of the 1 2 3 4 5
internet service performance, it is risky to use it.
14 It is risky to apply to HEI online. 1 2 3 4 5
120
Factor 5 Consumer involvement
15 I enjoy reading different information on the websites. 1 2 3 4 5
16 I enjoy contacting people via E-mail. 1 2 3 4 5
17 I enjoy all the new applications (e.g. flash, 3D pictures, 1 2 3 4 5
video) offered on the internet.
18 I enjoy searching for information via the internet 1 2 3 4 5
because it is convenient.
Factor 6 Opinion leadership
19 I am often influenced by people’s opinions about new 1 2 3 4 5
service.
20 I like to get others’ opinions before I buy a new 1 2 3 4 5
service.
21 I feel more confidence buying a new service when I 1 2 3 4 5
have gotten other people’s opinions on it.
Factor 7 Perceived ease of use
22 I have a very good knowledge about how to surf on the 1 2 3 4 5
internet.
23 I am satisfied with the speed of response which is 1 2 3 4 5
perceived as quality of the website.
24 I like searching for information on the internet because 1 2 3 4 5
it is effective.
25 It is easy to find information on the NMMU site that I 1 2 3 4 5
need.
Section C
1 Did you use the internet for information about a. yes
different overseas higher education institutions? b. no
2 Did you go to the homepage of NMMU’s a. yes
website? b. no
3 How did you find the NMMU’s website? a. through a search
engine
b. through promotional
materials
c. through an
educational portal
d. through education
agent’s website
e. others, please specify
.
4 Was the information posted on NMMU’s website a. highly sufficient
sufficient for you to decide to enrol in the b. sufficient
university? c. not enough
5 Did you e-mail to NMMU to make further a. yes (go to question 6)
enquires? b. no (skip from question
9)
6 How long did it take for NMMU to reply to your a. within 1day
enquiry? b. 1-2 days
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c. 3-5 days
d. Over five days
7 How did NMMU reply to you? a. via E-mail
b. via fax
c. via ordinary mail
8 Did the E-mail response influence your decision a. highly influence
to enrol with this university? b. influence
c. no influence
9 Who is the key decision maker for your choice of a. self
overseas higher education institution? b. parents
c. independent agent in
home country
d. other relatives or
friends
e. scholarship from
NMMU
f. home country
government
g. other, please specify.
.
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