Changing Behavior of Students to Online Shopping - Essay Example

Proposal Changing Behavior of Undergraduate towards Online Shopping in UK Content page Chapter Introduction…………………………………………………………………3 1.1 Online shopping – basic theme………………………………………………..3 1.2 Consumer behavior- An important part in online shopping.................................3 1.3 Background & Purpose of Research.........................................................................4 1.4 Sample consideration………………………………………………………….4 1.5 Aims and objectives……………………………………………………………4 Chapter- 2 Literature Review............................................................................................................5 2.1 Trust in online shopping……………………………………………………...5 2.2 Dimensions of trust …………………………………………………………..6 2.2.1Graphicdesign…6 2.2.2 Structure Design..6 2.2.3 Content Design …………….7 2.2.4Social-CueDesign..7 2.2.5 Security Control..7 2.2.6 Privacy Control……………………….8 2.2.7ServiceQuality……………..8 2.2.8Communication …..8 2.2.9 Responsiveness….8 2.2.10 Reliability…………………9 2.2.11Servicequalitymodelorthe‘GAP model’………………………..9 Chapter3 Methodology …………...9 3.0- Research Design………………………...9 3.1 An empirical study on factors influencing UK Students Online Shopping Behavior.10 Bibliography………12 Chapter-1 Introduction 1.1 Online shopping – basic theme The increase in technological domain in today’s world and application of internet in massive scale has also introduced and intensified the phenomenon of online shopping to a great extent among the consumers all over the world. Online shopping takes the experience of shopping to altogether a new dimension and helps in improving the necessary services given to the consumers as well as the vendors and also helps in managing all the required information of the payments of the customers, receipt of products of the new customers, their product and updating of all the necessary credentials. The primary features of the online shopping helps in providing business accuracy, flexibility of design and readiness of accessibility (Gay, Charlesworth & Esen, 2007, p. 173). Today internet is an increasingly popular medium of shopping due to its convenience of shopping at the click of a mouse. This research paper focuses on this subject because of its growing relevance among the young generation. 1.2 Consumer behavior- An important part in online shopping The behavior of the consumers in shopping is highly essential for the businesses in tracking the discrete preferences and engineers their strategies for focusing on the key requirements of the consumers. Various factors stand in the way of influencing the behavior of the consumers. From the standpoint of Warner, various external influences which affect the consumer’s behavior are demographics, socio-economics, technology and public policy; culture; subculture; reference groups; and marketing. Within the domain of internal influences, attitudes, learning, perception, motivation as well as self image and semiotics are various psychological attributes affecting the consumer behavior in online shopping (Malcolm). From the studies of Sheth in 1983 it can be also found that the consumers are predominated by mainly two types of motives which are basically functional as well as non functional. 1.3 Background & Purpose of Research It is a common agenda that people in today’s world have drastically changed their shopping patterns and there has been application of various strategies by the companies towards positioning their products in systematic and successful manner. The marketing managers while strategizing optimal marketing plans and concentrating on the four ‘P’ of marketing, product placement becomes highly essential. The application of online shopping finds its rigorous importance as life in today’s world has taken a jet propulsive pace and people need their products available at their doorsteps. Majority of the people in today’s world go for online shopping as it reduces cost and helps them purchase their necessary things sitting at the comfort of their home. The students within the United Kingdom provides an immense target market for the alternate retailers as the students are accustomed with this above stated life style. The online retailers fetch the ultimate opportunity in influencing the undergraduate students with online shopping making business potential customers into active ones. 1.4 Sample consideration Hence selection of undergraduate students as the main part of research study is justified. I will mainly elucidate changing behavior of the undergraduate students and their perceptions regarding online shopping and the factors that contribute to various changes. 1.5 Aims and objectives Thus having justified the sample consideration, now we will focus on the major aims and objectives of the paper. The basic aim of this paper is to explore the ways in which the behavior of UK undergraduate students has changed with the influx of modern technologies. Further segregation of aims and objectives can be summarized as follows: To investigate traditional ways of shopping by undergraduate students To seek the factors that contributes towards improvement in online shopping To what extent undergraduate students shop online To explore the changing habits of undergraduate students about online shopping To investigate the perceptions of undergraduate students about online shopping To examine the reasons which abandon undergraduate students to shop online Chapter- 2 Literature Review A brief literature review is necessary for discussion regarding the role of online shopping facilities associated with changing consumer behavior. There is a wide array of literature present which directs towards elaborating the increased habits of the consumers for shopping online. The main areas that will be covered in this section can be summarized in a synchronous manner as follows: 2.1 Trust in online shopping Within the domain of online shopping, the attribute of trust is basically required. Inadequacy in trust creates potential obstacles for the success of online retailing. The knowledge of the students is highly required for balancing the trust levels (Wang, 2004). Online shopping varies to a wide extent from the crux of normal shopping as it cannot felt by human sense organs until the product is delivered physically (Chris Webster, 2012). Researchers Graham and Charlton states that online retail has been on an improving trend but still 24% of the shopper is still within the midst of confusion. It is also a fact that online fraud is declining giving a positive boost to the students and other consumers in general (Chris Webster, 2012). 2.2 Dimensions of trust The customer trust is a function of certain factors associated with the external environment. The dimensions are basically graphic design, structure design, content design, and social-cue design. 2.2.1 Graphic design Graphic design acts as a first impression to the customers of online shopping. From the studies of Kim and Moon in 1998 in Korea states that the main clipart as well as that of the overall layout, three dimensional dynamic structure has been the potential reasons for customer attraction. But over complications and over utilization of technology may act as a potential hindrance to the undergraduate online shoppers. 2.2.2 Structure Design The structure design helps in identifying the overall aspect of the organization and accessibility of displayed information on the website with features including easy navigation, accessible information as in no broken links, use of navigation in terms of guides, tutorials and instructions. If the structure of the website and design are of good consistency, students will trust the site and will use it to transfer their ‘learning from one sub-site to next rather than having to learn everything over again for each new page’ (Neilsen,1998). 2.2.3 Content Design The content design is necessarily a precursor of customer trust with the incorporation of various informational contents within the websites. The students will feel highly secured in using payment options using cards and will be also spreading the fact regarding tight security creating a positive spillover effect (Egger, 2001, Neilsen, 1999). 2.2.4 Social-Cue Design Social cue design connects the consumers with the underlying cues which include face to face interactions, social presence as well as the application of communication media. Inadequacy of human presence may constitute a barrier for at least some consumers to trust online merchants (e.g. Riegelsberger and Sasse, 2002). For undergraduate students enhancing on trust of online shopping there has to be some sort of online contact, if any solution to online mistake, online chat will help students with problem. Video clips are also one feasible option. 2.2.5 Security Control Security is a significant parameter affecting customer trust in online shopping. Many authors used security as an antecedent affecting online trust (Chen & Dibb, 2010; McCole, Ramsey & Williams, 2009). The students are really required to be very cautious at time they log onto a website which they will use and trust. Confidentiality is a crucial factor and according to the viewpoint of Nasir et al (2007) that the initial concerns about online trust concentrate on the issues of security because, according to (Suh & Han, 2003), when security breaches takes place, many unpleasant effects will occur such as invasion of customers privacy, financial loss and harming the public image of online firms. 2.2.6 Privacy Control Privacy control is the utmost mandate of personal privacy in online shopping which is concerned with the storing, repurposing, providing to third parties, and displaying of information. Privacys exact nature needs to reflect the contemporary view of a society and it has been also observed that an increasing number of online users demand the protection of their personal privacy via various online tools like anonymit ( Chen et al, 2008). 2. 2. 7 Service Quality Optimum service provision is an apex requirement of business success. High levels of quality enable customers to have more trust in the internet vendor and make commitment to the relationship with the company. Various changes are necessary to be incorporated with the service quality delivery domain as for instance changes can be brought about in the service delivery processes, the environment in which the service delivery takes place and improvements in the interaction processes between customers and service providers. 2.2.8 Communication Communication is an omnipotent prerequisite for delivering properly the demands of the customers. Delving into the mapping work of trust antecedents of Kim and Tadisina (2007), one finds that website quality is a major dimension and antecedent to trust. 2.2.9 Responsiveness Responsiveness helps in enhancing customer trust as it is aligned with provision of timely services. Students are very much sensitive to quick responses. 2.2.10 Reliability After a service has been promised, then reliability means the ability to provide the service in a responsible and efficient manner. Service is executed accurately during the first occassion, all records are updated properly and schedules are maintained. When students browse and purchase items online the service is good, students will know when these goods will be disposed to them all correct details to ensure that relationship between both student and company is healthy and everlasting. 2.2.11 Service quality model or the ‘GAP model’ The factors that are needed for providing superior quality of service are emphasized by the service quality model or the ‘GAP model’ developed by a group of authors- Parasuraman, Zeithaml and Berry at Texas and North Carolina in 1985. It indicates the five ‘gaps’ that are reasons behind failure of delivery. (Parasuraman, Zeithaml and Berry 1985) Chapter 3 Methodology 3.0- Research Design Research design entails the generation of a proper framework providing a closely knit pathway for conducting the whole research process and also helps in analyzing and achieving objectives for answering various research questions (Bryman and Bell, 2007). Since live experiences is a major criteria in this research, for data collection process questionnaire will be used. Questionnaire will provide questions about: age, gender, privacy control, security control, how long they shop etc. The questionnaire will be distributed between thirty to fifty undergraduates’ students. Questionnaire that is used is structured and non disguised as pre-arranged set of questions will facilitate the students while answering them. Also the students are previously informed of the purpose of the survey so that they can know what exactly is needed from them. I will also be analyzing a pilot test to analyze the data gathered. Will be checking how words are being understood, how long it takes for questions to be answered. Now we will be elaborating an empirical study based on various factors which influences the online shopping behavior of the undergraduate students in UK. There are certain limitations to this research like time and cost constraints. Since data on the students are not always available so random sampling is also a limitation. Finally the size of sample is very small since only thirty to fifty undergraduates are taken. 3.1 An empirical study on factors influencing UK Students Online Shopping Behavior There are a number of different factors which influence the online consumer. However, this research will try to identify the factors influencing UK student’s online shopping behavior. Since rapid development of internet online shopping has become a new and widely used medium for retailing it has been found that 627 million people in the world shopped online in 2006 (Ac Nielsen 2007). In the US market 90% of the students accessing internet spend around $200 billion for shopping. The students of UK have a higher intention to buy products because there is a higher probability that they possess a computer and have good access to the internet. On the other hand, students from lower social classes who do not have access to the internet do not have the needed computer literacy to be able to leverage a computer. Moreover, the internet consumers are socially influenced by new reference groups than by any customary way. UK students can refer to discussion groups on the website, students will be able to refer to other people’s experiences and opinions which have shown to have the effect of reference groups (Christopher and Hurng, 2003). Smith and Rupp (2003) identified that the psychological characteristics of consumer behavior as questions the online consumer/student would ask before purchasing anything online and this basically incorporates motivation, perception, personality, attitude and emotions. The motivation of student depends on the sight they are looking at and the product they are basically wanting. Bregman Geunes, Weijters, Smith and Swinyard (2005) segment online customers through first identifying the Internet usage lifestyle of every consumer and they believe that the internet experience is highly relevant for the identification of the online consumer. Monsuwe et al (2004) created a framework through their study that would help the understanding of consumers’ perspectives on internet shopping. In addition, Bellenger points out that the ability to conduct price comparisons has been cited as a major reason to which consumers uses the internet (Wallace, 1995). Monsuwe et al (2004) made a comparison between different ways of shopping to find out the more reliable mode of shopping compared to the usual ones. Most students would agree with this theory based upon them saving time having more information about the product, this was mainly concluded on the fact that internet allows for more information to be gathered with minimal amount of effort, and invested time by the student. Consumer trust in online shopping and prior experience with online shopping were identified to have a significant impact on a student’s intention to shop online. This saves student’s time to go to store when they know they can trust the online methods. Smith and Rupp (2003) ascertained the psychological characteristics of online consumer through questions; such as trust security and prior experiences are present and they are highly relevant for the online consumer. Students within the UK like to ensure themselves that the product they get is secure and packaged properly. There are also other factors which influence online consumer behavior. Identified as marketing efforts, socio- cultural influences, experience, purchase and post purchase decisions. Students would have to go through different stages before the purchase of the product. First stage is where student is influenced by marketing efforts made media, second stage is known as process stage, which attempts to identify and explain how the student make the buying decision student can also be affected by psychological factors such as students motivation, personality, attitude and emotion. Major influence on the student buying the products depends highly upon the trust and security. Due to the importance of trust and security factor to make student feel more secure, author argue that information regarding security must be mediated to the consumer in a way that the perceived security is increased. The principle factors that influence a consumer’s behavior while internet shopping are trust and convenience even though they are affecting the decision making process (Smith & Rupp, 2003).Factors that affect online consumer behavior such as price which is a part of the marketing mix are factors used in order to stimulate the student and also a communicator. Another factor is trust, trust is considered to be a concern on the emotional basis in minds of the student. Consumers have a focus on their safety needs and want to satisfy them before making a purchase (Brassington and Pettitt, 2000). Convenience is considered to be a benefit factor in the eyes of the consumer and quality derived from purchasing over the net. It is considered to be a motivator and a benefit to consumers (Constantinides, 2004). Thus, having a brief about the empirical research and setting up of the research track, the findings of the paper is expected to be at par with the literature thus discussed and provides a good opportunity to explore the variations from the literature being explored. References Chen et al, (2008), Online privacy control via anonymity and pseudonym: Cross-cultural implications. Vol. 27, Issue 3, pp. 229-242 Charlton, G, (2007), Trust in online shopping improving – study. Available at, (accessed 16 January, 2013) Gay, R, Charlesworth, A & Esen, R, (2007), Online Marketing: A Customer-Led Approach, Oxford University Press Wang, D & Emurian, H, H, (2005), An overview of online trust: Concepts, elements, and implications, Computers in Human Behavior, Vol. 21, pp. 105-121 Webter, C, (2012), Building trust online. Available at, < http://www.uk.capgemini.com/news-centre/news/building-trust-online> (accessed 16 January, 2013) Zheng, F, (2006), INTERNET SHOPPING AND ITS IMPACT ON CONSUMER BEHAVIOUR. Available at, < http://edissertations.nottingham.ac.uk/704/1/06_MSc_International_Business_lixfz5.pdf> (accessed 16 January, 2013) Read More