Customers’ purchasing behavior toward home-based SME products: evidence from UAE community

Abstract

Purpose The purpose of this study is to explore factors influencing customers’ purchasing behavior toward home-based small and medium enterprise (SME) products. Moreover, this study explores customer perception of home-based SME products and services, as assesses their satisfaction with the parking area layouts and delivery service systems of home-based SMEs. Design/methodology/approach Relevant variables were drawn from the literature review. A well-structured, internet-based customer questionnaire was developed for this empirical study and sent to a targeted sample of 117 respondents. The statistical methodologies such as ranking scale analysis, analysis of variance and Pearson’s correlation were used to assess the gathered data using SPSS software. Findings The main findings revealed that 83% of the customers perceived the quality of home-based SME products and services as “at least good,” and that convenience was ranked as 21.1% with the most crucial factor for customers, which includes easy access, effective delivery and quicker processes. Moreover, the study reveals that approximately 50.4% of customers rated the parking area layouts as “at least good,” while 33.9% considered it dissatisfactory. The evidence from the correlation analysis indicates that consumers’ purchasing behavior correlates significantly with accessibility, ease of finding online shopping sites and availability of parking areas at a 95% significance level. Research limitations/implications The research findings will bring insights to SME owners and entrepreneurs to infer and fulfill customer expectations and achieve brand loyalty. However, research limitations include the relatively small sample size, as well as the study, focuses on home-based SMEs’ consumer behavior which cannot be generalized to other firm types. Practical implications This study provides useful information on the factors and issues influencing the purchasing behavior of customers toward home-based SME products in the UAE. Understanding of SMEs owners of customer experience would facilitate planning adequate strategies addressing customers’ needs, behaviors, expectations and future opportunities. Also, logistic and delivery companies can further support SME’s growth by providing an efficient delivery experience taking into consideration the quality of product condition and duration of the delivery cycle. Originality/value Home-based SMEs are emerging as intrinsic to the economic diversification process, especially in fast-growing and ambitious countries such as the UAE. The research objectives have drawn a better understanding of consumers’ preferences, perceptions and purchasing behavior which would better facilitate the growth and sustainability of home-based SMEs based on the UAE context.