The Online Shopping Behaviour - Case Study Example

FACTORS INFLUENCING ONLINE SHOPPING Name: Course Professor’s name University name City, State Date of submission Analyse the influences of the internal and external factors on consumer decision process concerning the online shopping behaviour Introduction With the rapid development of network technology, e- marketing and e-commerce have gradually developed. The number of online users is growing making certain retail distributors such as David Jones to re- strategize to win the growing group of shopper. A number of factors such as culture, conditions, personal, social, psychological factors affect the online shopping. Initially there were issued with online transactions between online retailers and shoppers. This was due to the immature medium of credit and payment means have been marred with safety concerns. David Jones appreciates the importance of safeguarding customer privacy as stipulated in their policy. The need for retail companies to safeguard customers’ privacy is paramount since the individual shoppers information can be intercepted easily and utilized illegally. Another factor that affects the use of online shopping by consumers is deep rooted culture of traditional shopping among certain shoppers. Generally, there are some consumers’ habits of “seeing believes”, after personally touching, tasting, testing and using other sensory judgement in making decisions. Online shopping provides only visual examination which is can be influenced consumer online shopping. Just like any other technological, online shopping requires some computer and internet experience which may not be readily available in some parts of the world. Buyer behaviour of consumer plays one of the main responsibilities in fulfilment of the key objectives of the market. It is influenced by a number of both internal and external factors but the supplier has a considerable influence on the decision- making process of the buyer[Kat11]. According to [Que14] some consumers possess a risk perception on shopping which is greater in non- store purchase than store purchase. Online shopping lacks public trust since there is not actual tangible business transaction. Thus the risk is far greater than the convectional purchasing. Most of the internet shoppers are just web browsers not registered members of the shopping sites. However certain online stores such as David jones have crated portals where users can create their profile thus creating some level of trust among the consumers. The company also has custom “David Jones cards” debit cards which can be used to carry out transactions, hence ensuring security of the customers’ accounts. Consumers are also concerned about the quality of products, accuracy of descriptive information provided, site integrity, timely delivery of products and commodity quality Human beings are social beings, and in the recent days, consumers are participating in a number of activities, ranging from content consumption to gathering information, opinions and experiences involved in discussion with other consumers on an online platform. Today, with the prevailing internet advancement, online social platforms are now vital communication channels, where virtual communities converge[Her00]. After the long term internet development, which led to rapid rise in web users and fast speed connectivity, new technologies have been developed with marketing content aimed at promoting and enhancing product and services images within the web world. According to [Wan] the improved service and detailed product information has swayed many customers to alter their behaviours from the convectional mode to internet shopping mode. There are several reasons for the rapid growth of the online shopping, which mainly link to the benefits that internet offers. To begin with, internet provides a different form of convenience to the consumers. Evidently, consumers do not require to venture out looking for their desired product and services information as the internet can assist them to search from the producers and suppliers online marketing sites[Wan]. Additionally, the internet can enhance the utilization of the product by the user in a more effective and efficient manner thus satisfying their needs than any other channel. Through the different online search engines, the consumers can easily access the product consumption related news and information. Such information can be accompanied with images sounds thus offering a very detailed description to assist the consumer in making wise selection of the most suitable product[Gol05]. Influences of Online Shopping Decision: Motivations that lead consumer to buy online There are a number of noted reasons why people shop online. For instance the fact that consumers can by anything at any time without visiting the store; they can purchase the same product at a cheaper cost after comparing different online sites; in some instances the consumers want to avoid direct physical contact with the respective sales person; they can void the traffic jams; they can access products outside their geographical reach, and so much more. In this paper, the factors that influence consumer behaviour in regards to online shopping can be summarised into four major categories, availability of products and services, information, cost and time efficiency, and convenience. Information: according to[Wan] internet has provided an excellent platform of easier data accessing. Since online shoppers do not get an opportunity to physically feel or tough the product or service, online suppliers provide a lot of relevant information regarding the product or service. This information is very crucial in aiding the consumer when carrying out decision making and hence purchasing[Lim04]. Online shoppers also get an opportunity to benefit from the reviews and feedbacks done by other shoppers regarding the particular products. Such reviews are also important during decision making. Convenience: according to [Kat11], empirical research reveals that internet convenience is one of the main reasons of consumers’ willingness to shop online. Internet shopping is available around the clock unlike the convections store which opens at particular times of the day. According to [The08], 58 percent decided to shop online since they could buy after-hours, when the convection stores are closed, while 6z1 per cent of the interviewees shopped online so as to avoid queuing and crowding, especially during peak seasons and holidays.[Kat11], notes consumers are not only interested on the products but also on the online services too. Some dealers have 24 hour customer service line. Customers can ask questions, and get necessary assistance or support, even after business hours. This in itself offers convenience to the consumers[Her00]. Some shopper uses the online mode in order to stay away from face-to-face contact with the salesperson thus avoiding any potential control or manipulations that a salesperson can exercise within the market place[Gol05]. This is particularly true for those shoppers who have had previous negative encounters with the salesperson, or they just require being free and making independent decisions. Availability of products and services: Online shopping has simplified transactions since online stores are stocking more variety products and services that shopper can choose from. [Pra09], Concludes that consumers are able to access all kind of products from all over the world, no matter whether they have been stocked in the front store or not. Traditional retailers are also finding it easier to market their products online so as to minimize the retailing costs as well as offering more variety to the consumers. For instance, [Kat11], give us an example of a French multinational company, Yves Rocher, which does not operate a front store in the US, but rather offers a website whether the US shoppers can order online and have the products shipped to their house. Moreover, online shopping offers great payment terms and plans to the consumers. Shoppers can make payment in their own convenience and preference. Cost and time efficiency: in most cases online shoppers get superior deals such as cheaper costs unlike in the stores. Online platforms also give the shoppers a platform for comparison between products and prices offered by different suppliers, unlike the local stores purchases[Lim04]. Some online sites such as EBay, gives best offer option or customer auction, so they can make the best deal of their product, thus making shopping a fun and entertainment. Customers are also saved from the hustles and bustles of urban traffic, long queues in checkout lines, and overcrowding in stores. Conclusion Nowadays with the rapid IT advancement, online shopping is gradually but steadily becoming a common an inevitable purchasing mode among people of different age. Just like any other technological, online shopping requires some computer and internet experience which may not be readily available in some parts of the world. Buyer behaviour of consumer plays one of the main responsibilities in fulfilment of the key objectives of the market. This is due to the fact that consumers are finding it more convenient and express, and can easily access the product consumption related news and information References Kat11: , (Katawetawaraks & Wang, 2011), Que14: , (Quester, Pettigrew, & Hawkins, 2014), Her00: , (Hermes, 2000), Wan: , (Wang, , Ye, Zhang, & Nguyen, 2005), Wan: , (Wang, , Ye, Zhang, & Nguyen, 2005), Gol05: , (Goldsmith, 2005), Lim04: , (Lim & Dubinsky, 2004), Kat11: , (Katawetawaraks & Wang, 2011), The08: , (The Tech Faq, 2008), Pra09: , (Prasad & Aryasri, 2009), Read More