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Effects of online shopping on consumer behaviour
Effects of online shopping on consumer behaviour
Factors affecting online shopping
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1. INTRODUCTION In general, electronic commerce is the process of buying and selling goods or services using electronic systems between organisations and in business-to-consumers (Saxena, 2013). With the passage of time, electronic commerce had become one of the essential characteristics in the internet era. According to UCLA (University of California, Los Angeles) Centre for communication Policy (2001), online shopping has become the third most popular activity on the internet, immediately following e-mail using, instant messaging and web browsing. Online shopping behaviour which is also known as online buying behaviour and internet shopping or buying behaviour refers to the process of purchasing products or services through the means of These factors are found to be most influencing towards the attitudes and behaviour of customer’s online shopping. The measures that have been employed to value vender characteristics in the factual studies include the factors like; real existence of the store i.e., the physical location of the store, the reputation of the store, its size, its reliability, the number of Internet store accesses, assurance mechanisms such as warranties, seals etc., and use of testimonials (van der Heijden et al. 2001; Liang and Lai 2000; Bhatnagar et al. 2000; Kim et al. 2001; Lowengart and Tractinskky 2001; Grazioli and Wang 2001; Pavlou 2001; Jarvenpaa et al. 2000; Lee et al. 2000). The product features that put an impact on customer’s online shopping behaviour are such as; the variety of goods, the quality, performance and uncertainty of the product, availability of the product, price of the product, its social presence requirement, product presence requirement, dependability of the product, possibility of customized products, and the brand of the product (Jahng et al. 2001; Liang and Huang 1998; Kim et al. 2001; Cho et al. 2001; Lowengart and Tractinskky 2001; Muthitacharoen 1999). In addition to this, researchers examine that there are different approaches of service provided by the venders through the online shopping process. The service The results bearing on this factor directly influence consumer’s purchasing behaviour. In addition, there appears to be an impact on user’s satisfaction. Though it is important, there are only five studies that include it. According to Haubl and Trifts (2000), potential consumers appear to use a two-stage process in reaching purchase decisions. Initially, consumers typically screen a large set of products in order to identify a subset of promising alternatives that appears to meet their needs. They then evaluate the subset in greater depth, performing relative comparisons across products based on some desirable attributes and make a purchase decision. Using a controlled experiment, these authors discover that the interactive tools designed to assist consumers in the initial screening of available alternatives and to facilitate in-depth comparisons among selected alternatives in an online shopping environment may have strong favourable effects on both the quality and the efficiency of purchase decision’s (Haubl and Trifts 2000, p.
Electronic Commerce or e-commerce refers to a wide range of online business activities for products and services(Rosen, 2000). E-commerce (or electronic commerce) is defined as the buying and selling of goods and services conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems and automated data collection systems. (Anon, n.d.). It also refers to any type of business transaction where the parties interact electronically rather than by physical exchanges or physical contact. (Anon, n.d.)
E-commerce “is the exchange of money for goods or services between companies and/or end consumers” (Hemond-Wilson). The most common image of e-commerce “is that of a web-based catalogue from which buyers can order products and the sellers can receive payment” (Hemond-Wilson). E-commerce has two main forms, which are business-to-business, and business to consumer. B2B e-commerce “is business which is conducted between businesses via some electronic means” and B2C e-commerce “is the exchange of money for goods or services between a company and end consumers using electronic technology” (Hemond-Wilson).
The Electronic Commerce, or e-commerce industry, is one of the most conductive sectors of the economy. E- Commerce is an interesting combination of business models and new information technologies as it deals with the buying and selling of goods and services over the Internet. The three major electronic commerce categories are: business –to- consumers (B2C)
Online presence involves more than just an engaging storefront or landing page. In Question 2, time was spend on unpacking the consumer decision process when shopping online, including aspects of the strong sense of community, trust and safety.
Generally, since impulse buying is typically considered to be an undesirable and unplanned behavior (Hausman, 2000; Rook and Fisher, 1995). What’s more, when users are browsing Website or platform content on a mobile device, the higher the degree of attentional involvement, the more enjoyment the user will feel (Hoffman and Novak, 1996). And the higher the enjoyment felt by consumers on the Internet, the more likely they were engaged to make a purchase decision impulsively (Moon and Kim, 2001; Keeney, 1999; Wu and Ye, 2013).
E-commerce has evolved in three different stages over the years to satisfy communications and business needs. E-commerce is an easy way to purchase and to sell products or services over the internet and other computer networks without any difficulties. The invention, the consolidation, and the reinvention with the social and mobile are the three periods of e-commerce. The study is a description of the three different steps of e-commerce.
Electronic commerce, more commonly abbreviated as e-commerce, is the action of buying and selling products or services through the medium of electronic information systems such as computer networks - the most common of which being the World Wide Web, or internet (Dorogovtsev & Mendes, 2003). A variety of technologies are used to facilitate e-commerce including electronic funds transfer (EFT) which facilitates the electronic exchange of money, online transaction processing (OTP) which handles the data entry and retrieval for transaction processing and electronic data interchange (EDI) which is responsible for processing orders, warehouse stock control and order tracking (Turban, et al., 2009).
E-commerce or electronic commerce is carrying out business communications and transactions through computers and over networks. It involves buying and selling of goods and services through digital communication. E-commerce also includes transactions on the World Wide Web and the Internet and means such as electronic funds transfer, smart cards and digital cash. E-commerce covers outward facing processes that interact with customers, suppliers and external partners such as sales, marketing, delivery, customer service, purchasing of raw materials and supplies for production.
Consequently, e-business and especially online shopping is crucial for retail stores. They should provide necessary infrastructure for selling their products online. By taking advantage of e-business not only they can get competitive advantage of online shopping, but the...
If consumers enjoy the online shopping experience, they are more likely to shop online. Study suggested that online shopping enjoyment can generate search intention, which in turn generates purchase intention (To et al., 2007). Consumers’ motivations for online shopping are dual characterizations. Research has claimed that utilitarian motivation can influence consumers’ intention to search and to purchase, while hedonic motivation has a direct impact on intention to search and indirect impact on intention to purchase (To et al., 2007). Online shopping has many advantages which can fit consumers’ needs and motivation.
Consumer buying behavior is the total sum of a consumer's attitudes, preferences, intentions, and decisions regarding the consumer's behavior in the marketplace while purchasing a product or service. In simple words Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. The study of consumer behavior draws upon social science disciplines of anthropology, psychology, sociology, and economics.
The most important affect the internet bestowed, or e-shopping as we like to call it, is its affect on the economy. Now is the future, and our retailing process needs a major change, as Birch, Schneider, and Gerbert (who wrote E-Tail) said, ?[to] re-invigorate the prospects of players in traditional consumer business?? (E-Tail 10). They also said, ?[?] [A] ?low price? but ?high delivered value? position has been economically irrational[?]to the retailer until now? (11). Such as it is right now: specialty stores deliver a high price and high quality, department stores deliver a high price and medium quality, warehouses deliver medium prices and quality, discount stores deliver medium prices and low quality, warehouse clubs deliver low price and quality, and internet shopping is the answer: it delivers low price and high quality (Birch, Schneider, and Gerbert 14). Within these past years, internet sales have increased. Although e-sales make up a paltry 1.5-3% all in all (Puente 2E), e-sales make up 23% of all book, music, electronic, computer, and toy sales (Puente 2E). According to Jupiter Research, internet revenues have increased $40 billion in 2002, as opposed to the increases in 2001 ($30 billion) and 2000 ($24 billion); U.S. online revenue has been growing 30-40% a year as opposed to 4% a year in offline retail (Puente 2E). Due to the incident of September 11th, 5% of the 2,000 people NetRatings asked said they would do their shopping online in case of terrorism in public places (Tsao C1). Out of the Americans with internet access, 29% will make a purchase during the month (Voglestein 1c). Holiday shopping has extenuated this increase. Goldman Sachs and Nielsen/Net Ratings reported that shoppers spend 17.5% of holiday money on the internet in 2002. Also, on Black Friday (the major shopping day after Thanksgi...
Salisburyet al., 2001 explain that online purchase intention as a construct that provide the strength of customer intention to purchase on internet. When evaluating online consumer behavior it is observed online purchase intention is more applicable measure of intent to use web site (Pavlou2003). Further pavlou define purchase intention dependent on many factors. For the promotion of online purchase intention in consumers, online retailers will need to emphasis on these factors to enhance online purchases.
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.
In today’s era “INTERNET” is playing a significant role in our daily life. People can walk through the internet to one who is actually living on the different side of the planet, can send mails round the clock, search information & even buy things online. With this invention of internet there is a shift in traditional way of shopping. Now there is no need to open a physical store. One can be active at any time and place and purchase products and services. The number of users of internet is increasing day by day which means that online shopping is increasing. Various characteristics of online shopping is making it more convenient for the customers, as compared to traditional way of shopping such as the ability to view and purchase goods and