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Archives of Business Research – Vol. 9, No. 6
Publication Date: June 25, 2021
DOI:10.14738/abr.96.10356. Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis on The Effect of Computer Literacy and Attitude Towards Internet
Amongst Generation Y. Archives of Business Research, 9(6). 203-213.
Services for Science and Education – United Kingdom
An Analysis on The Effect of Computer Literacy and Attitude
Towards Internet Amongst Generation Y
P. Ravindran Pathmananathan
Unies Group
Khairi Aseh
Unies Group
Kamal Kenny
Unies Group
ABSTRACT
The Internet continues to change and evolve against a backdrop of unrelenting
growth The Internet developed a ground-breaking open model for its own growth
and governance that included all stakeholders.Generation Y has been recognized as
a new market segment that will bring change in the platform of internet in an
enormously connected world. The aim of this study is to analyze the attitude and
the Internet usage among the generation. This study was carried out via a
questionnaire involving 432 working professional who live around Kuala Lumpur
Federal Territory and Selangor State, more precisely the author has selected MSC
(Multimedia Super Corridor). It can be concluded that their attitude toward the
internet played a significant role in their e-commerce activities and was a predicted
factor. It is apparent that attitudes toward the internet and e-commerce practises
have a major relationship.
Keywords: Internet, Generation Y, attitude, e-commerce, MSC, Kuala Lumpur,Selangor
INTRODUCTION
It's remarkable that fixed broadband connections only surpassed dial-up access in 2004, that
the number of users only surpassed one billion in late 2005, and that the first smartphone was
only released in 2007. Mobile broadband has exceeded fixed broadband, developing country
users have surpassed developed country users, video traffic has surpassed all other forms of
traffic, and the number of users is approaching four billion in early 2017 (Lachman & Bret,
2013).
The Internet has altered the course of history. The way individuals communicate and
collaborate, entrepreneurs and companies conduct business, and governments and people
connect has all changed as a result of open Internet access. Simultaneously, the Internet
developed a ground-breaking open model for its own growth and governance that included all
stakeholders.
According to a survey conducted by Miniwatts Marketing Group (2012), the total number of
internet users in the world is 2.405.518.376, with Asia accounting for 44.8 percent, Europe for
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21.5 percent, and Australia for 11.4 percent. As compared to data obtained in 2000, the total
population of internet users was just 360.985.492, indicating a 566.4 percent increase in
internet users between 2000 and 2012.North America has the largest percentage of internet
users, with 78.6 percent of the population of 340.280.154. The improved telecommunication
infrastructure has had a significant effect on the region's higher internet penetration.
Research Objective
This objective of the study is to analyze the attitude and the Internet usage among the
generation Y. The research objective are as follows:
1. To analyze generation Y attitude towards internet in their e-commerce activities
2. To examine the relationship between the role of computer literacy and attitude
towards internet among generation Y.
3. To examine the moderating effect of the role computer literacy in its relationship
with attitude towards internet
LITERATURE REVIEW
Gen Y
Millennials are members of Generation Y, who were born between the late 1970s and the late
1990s. Every generation has its own distinct characteristics, as well as similarities and
differences that can be used to gauge how they behave. Obviously, it is important for a marketer
or even a researcher to be aware of this potential customer. The generation Y is one of the most
populous. Generation Y, also known as the Millennials, is a group of people who are known for
their diversity (Hawkins & Mothersbaugh, 2010)
The majority of the "Echo Boomers" have reached the workforce. They are also technologically
savvy, communicating through e-mail, cell phone, and SMS. More than 90% of people between
the ages of 18 and 29 use the internet, which is higher than the previous generation. MTV,
Maxim, American Idol, Big Brother 4, and CSI are among the radio and television programmes
that cater to this generation (Hawkins & Mothersbaugh, 2010). Generation Y has earned better
education than previous generations (Kaifi, et al, 2012). This generation has grown up with
technology and considers it second nature to them (D'Netto, 2011).
Attitude towards technology
Modernization has greatly shaped and changed the world and how people live their lives today.
Advance technology is rapidly evolving, and people are becoming more reliant on it. People's
attitudes toward technology, on the other hand, are not uniform. There are many variables that
contribute to this imbalance, one of which is age (Kubiatko, 2013).According to American
Express Business Insight (2012), boomers are less comfortable with technology than previous
generations, but they are trying to keep up with the new technology. The millennial generation,
however is young, intelligent, and outspoken. Millennials or generation Y, unlike their
predecessors, walk at a breakneck speed; they are both high-performing and high-maintenance
since they were born with technology (Armour, 2005). In comparison to previous generations,
this generation considers itself to be technologically savvy. They believe that technology is
critical to their success (American Express, 2012).
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis on The Effect of Computer Literacy and Attitude Towards Internet Amongst
Generation Y. Archives of Business Research, 9(6). 203-213.
URL: http://dx.doi.org/10.14738/abr.96.10356
Attitude towards Internet
Almost all humans today is aided by computer technology. There is no other technology that
has had as much of an impact as computer technology and the internet. The information age
was ushered in by information and communication technologies such as mobile phones, email,
and instant messaging. The word "digital divide" refers to the disparity between those who
have effective access to information technology and those who have restricted access or are not
even using it. Poverty, class, gender, socioeconomic status, cultural differences, and age group
are all factors that contribute to this inequality (Schiller, 1996).
According to Norman in his book Cybersphology, we live in a world where the rich seem to get
richer and the poor seem to get poorer, and many baby boomers are among the richest, wealthy,
and trained people on the planet, but the majority of this generation is unable to keep up with
the rapid pace of digital and information technology. Individuals from the baby boomer
generation have the most discretionary income to spend on IT, but they are also on the cusp of
the digital divide (Norman, 2008).
METHODOLOGY
A total of only 432 set of questionnaires collected out of 450 set were distributed. The research
focused on working professional who live around Kuala Lumpur Federal Territory and Selangor
State, more precisely the author has selected MSC (Multimedia Super Corridor) landmark such
as Cyberjaya, Selangor, TPM (Technology Park Malaysia) and Kuala Lumpur City Centre, since
there are lots of office spaces and many local and multinational (MNC) companies were
established in Multimedia Super Corridor (MSC) landmark. In the initial stage the researcher
obtains several procedures to get legal permissions from 10 IT companies in the Kuala Lumpur
and Selangor state. Secondly, the researcher is not allowed to circulate the questionnaire by
himself. Subsequently the human resource and general affair department circulated the
questionnaire to respective respondent in particular companies.
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RESULT
Demographic Profile of Respondent
Demographic Categories Total Percentage (%)
Gender Male
Female
208
192
52
48
Age 25 and under
26-33
34-40 years
296
80
52
74
20
6
Education High school or equivalent
Diploma
Bachelor Degree
Master Degree
Doctoral Degree
48
28
248
72
4
12
7
62
18
1
Income 0 – MYR 2000
MYR 2001- MYR 4000
MYR 4001- MYR 6000
216
132
52
54
33
13
Frequency using
internet
Several times a day
About once a day
Every few days
380
12
8
95
3
2
Wireless utilization Using wireless
Don’t use wireless
388
12
97
3
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
AI 400 3.00 7.00 5.0413 .86712
CL 400 2.83 7.00 4.9151 .69533
Ecomm 400 3.24 6.15 4.6997 .64516
Valid N (listwise)
400
Model summary Generation Y Attitude towards Internet on their E-commerce
Model Summaryb
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .879a .687 .683 .58475
a. Predictors: (Constant), AI
b. Dependent Variable: Ecomm
R square value is 0.687 (R2 = 0.687). It means that 68.7 percent of e-commerce activities are
predicted by attitude towards internet, in the meantime, the rest 31.3 percent were predicted
by other factors which are not conducted in this research.
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis on The Effect of Computer Literacy and Attitude Towards Internet Amongst
Generation Y. Archives of Business Research, 9(6). 203-213.
URL: http://dx.doi.org/10.14738/abr.96.10356
ANOVA Generation Y Attitude towards Internet on their E-commerce
ANOVAa
Model Sum of Squaresdf Mean Square F Sig.
1
Regression 29.989 1 29.989 87.704 .000b
Residual 136.089 398 .342
Total 166.078 399
a. Dependent Variable: Ecomm
b. Predictors: (Constant), AL
The result shows that there is a significant relationship between attitude towards
internet and e-commerce with prediction equation (F = 87.704, p < 0.05).
Coefficient of Attitude towards Internet on E-commerce
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) .665 .252 2.638 .000
AI .836 .058 .829 14.507 .000
a. Dependent Variable: Ecomm
The result is positive significance between attitude towards internet and e-commerce activities.
Model Summary Computer Literacy and Attitude towards Internet
Model Summaryb
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .618a .473 .457 .84739
a. Predictors: (Constant), CL
b. Dependent Variable: AI
R value is 0.618, and it is indicating positive value, therefore the relationship between two
variables is positive relationship and strong correlation.
ANOVA Computer Literacy and Attitude towards Internet
ANOVAa
Model Sum of Squaresdf Mean Square F Sig.
1
Regression 14.214 1 14.214 19.794 .000b
Residual 285.793 398 .718
Total 300.007 399
a. Dependent Variable: AI
b. Predictors: (Constant), CL
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The result shows that there is a significant relationship between computer literacy and attitude
towards internet with prediction equation (F = 19.974, p < 0.05).
Coefficient of Computer Literacy and Attitude towards Internet
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 3.774 .288 13.104 .000
CL .717 .071 .618 4.449 .000
a. Dependent Variable: AI
Result is positive and there is significant relationship between computer literacy
and attitude towards internet.
Model Summary Computer Literacy and Attitude towards Internet
Model Summaryc
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .496a .246 .244 .56105
2 .593b .351 .348 .52099
a. Predictors: (Constant), CL
b. Predictors: (Constant), CL, AI
b. Dependent Variable: Ecomm
R square value is 0.246 (R2 = 0.246) which means 24.6 percent e-commerce activities can be
predicted by their computer literacy.
ANOVA Computer Literacy Moderate Attitude Towards Internet and E-commerce
Activities
ANOVAa
Model Sum of Squaresdf Mean Square F Sig.
1
Regression 40.796 1 40.796 129.601 .000b
Residual 125.282 398 .315
Total 166.078 399
2
Regression 58.321 2 29.161 107.434 .000c
Residual 107.757 397 .271
Total 166.078 399
a. Dependent Variable: Ecomm
b. Predictors: (Constant), CL
c. Predictors: (Constant), CL, AI
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis on The Effect of Computer Literacy and Attitude Towards Internet Amongst
Generation Y. Archives of Business Research, 9(6). 203-213.
URL: http://dx.doi.org/10.14738/abr.96.10356
The result indicated there is a significant relationship computer literacy moderating attitude
towards internet and e-commerce activities with prediction equation, (F = 129.601, p < 0.05) &
(F = 107.434, p < 0.05).
Coefficient of Computer Literacy Moderate Attitude towards Internet and E-commerce
Activities
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 2.553 .191 13.387 .000
CL .537 .047 .496 11.384 .000
2
(Constant) 1.618 .212 7.638 .000
CL .459 .045 .423 10.217 .000
AI .248 .031 .333 8.035 .000
a. Dependent Variable: Ecomm
The result is computer literacy have significant influence toward e-commerce activities because
the significant level scores 0.000.
DISCUSSION
The psychological state of Y generation consumers in light of online shopping is represented as
their online shopping attitudes (Li & Zang, 2002). The attitude of customers toward online
shopping is thought to be the most important factor influencing e-shopping potential (Michael,
1998). Benefits derived from characteristics are referred to as perceived benefits, and they may
be physiological, psychological, or material in nature (Gutman, 1982). The aggregate
advantages or satisfactions of online shopping that meet the needs or wants of consumers are
represented as Y generation consumers perceived benefits in the sense of online shopping
(Shwu-Ing, 2003). As a result, extrinsic benefits include a diverse product offering, attractive
pricing, quick access to information, and low search costs (Delafrooz & Khatibi, 2009). The
strongest linear relationship between attitude toward online shopping and perceived benefits
of online shopping has been discovered in previous research (Delafrooz & Khatibi, 2009).
Jusoh and Ling (2012) found that people's attitudes toward the internet have a huge impact on
their e-commerce practises. Finally, consumer or customer perceptions of the internet, its use,
and e-commerce have a huge effect on their e-commerce activities. According to a previous
study conducted in Turkey (2005), there is a strong high and optimistic association between
respondents' attitudes toward computers and their computer literacy. However, there was no
connection found between their attitude toward the internet and their computer literacy skills;
this may be due to a lack of Internet access, which may explain why this relationship was
weaker than the others in the study (Yalcinalp, 2005). Another study conducted in Australia in
2008 found a clear connection between the frequency at which people use the internet and
their perception of their computer skills. The more they understand it, the more effectively they
use it. This link was critical for the online application. Rather than doing conventional
computing, the young generation spends the majority of their computer time online.
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According to the results of the survey, there is a substantial gap between those with high
computer literacy and those with low computer literacy. Those with a moderate level of
computer literacy have an insignificant relationship between computer literacy and attitude
toward the internet, whereas those with a high level of computer literacy have a substantial
relationship between attitude and computer literacy. This result is backed up by Yanik (2010),
who claims that those with higher computer literacy are more likely to enjoy internet usage,
and vice versa. The researchers discovered a connection between computer literacy and
people's attitudes toward the internet. A previous study conducted in Singapore in the year
2000 backs up this conclusion. Liao and Cheung (2000) attempted to investigate the
importance of computer literacy and e-commerce in their research. They found out that people
who are computer literate have a better attitude toward the internet and are more likely to be
interested in e-marketplace opportunities. Furthermore, Dillon and Reiff (2004) discovered
that users with more computer knowledge or who are computer literate have a more optimistic
attitude toward the internet and online shopping.
Respondents in this study were working professionals from service companies who mostly deal
with IT-related tasks; as a result, the majority of the respondents have a high level of computer
literacy, with only a few having a low level of computer literacy. As a result, they had a
favourable attitude toward internet and e-commerce practises. Data literacy skills moderate
attitudes toward the internet and e-commerce, according to hypothesis testing.
CONCLUSION
The study had gained a better understanding of generation Y attitudes toward the internet and
e-commerce. The primary goal of this research is to examine the attitudes of Generation Y
toward the internet. The findings revealed that their attitude toward the internet played a
significant role in their e-commerce activities and was a predicted factor. It is apparent that
attitudes toward the internet and e-commerce practises have influenced Generation Y
significantly.
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