The Role of E-Commerce and Online Shopping, Factors Affecting E-Commerce - Research Proposal Example

 Marketing: Creation of a survey and questionnaire to establish various factors affecting E commerce Marketing: Creation of a survey and questionnaire to establish various factors affecting E commerce 1 Introduction: 1 Factors affecting E commerce: 3 Pricing: 3 Availability: 4 Time saving: 4 Net Information: 5 Offers and incentives: 5 Recent search field: 6 Hypothetical analysis: 7 Questionnaire: 7 Question 1: 8 Question 2: 8 Question 3: 8 Question 4: 9 Question 5: 9 Question 6: 10 Question 7: 10 Question 8: 10 Question 9: 11 Conclusion: 12 References: 12 Introduction: Over the years there has been seen that the there has been an increase in the production process that is followed by man due to the coming of the industrial revolution. With time there has been observed the emergence of global economy which led to the development of an international economic structure where there has been experienced a systematic break down of the local barriers. Due to the changes that have taken place the companies today have to ensure that they create product consciousness among the customer base through strategic management in order to ensure that there is a stable economic market available for their products and to ensure generation of demand for their products (Kang, H., Hahn, M., Fortin, D. R., Hyun, Y. J., & Eom, Y, 2006). This has become a vital part of the entire production system as without the creation of product consciousness and product management the competition cannot be met in the 21st century with the realization of global economics and market. With the changing demands and needs of the market there has been seen that most of the organizations in the world have changed their management and strategic policies to ensure that greater awareness can be created in the market (Karger, D. W., & Malik, Z. A. 1975). This has been seen to have reaped fruits for almost all the companies around the globe (Catterall, M., & Maclaran, P. 2002). But on the other hand there has to be realised that there have been certain companies and organizations which have emerged as global leaders in their field and sphere of influence but have not changed their policies or strategic management a great deal but have employed a persistent policy of organization and functioning (Kai H. L., Choon, L. S., Matthew, K. O. L., & Izak, B, 2006). These include companies like Hershey’s Chocolate, Johnson and Johnson and other such global leaders. But the fact remains that due to the changes that have been experienced in the international market, e commerce has emerged strongly. But again there can be seen that the emergence of e commerce has emerged in different variations in different societies, for example, the e commerce of USA is more popular than the e commerce market in Japan. The reasons for these variations are various factors that affect e commerce. In the following paper there shall be conducted a detailed analysis of the various factors affecting e commerce. A survey based on a questionnaire will then be prepared to gather information about the consumer choices that affect the popularity of e commerce as method of shopping. E commerce has emerged so strongly with international companies like E bay, Amazon. Com, wall mart having been highly successful, that all multinational corporations like Hershey’s chocolates, JC penny and others have also created their online sites so that e commerce facilities are established. Factors affecting E commerce: There are various factors that affect the e commencing g and online shopping. These will be discussed in details below: Pricing: One of the most important factors that has a direct effect on the sales and popularity of e commerce is pricing. The various shopping sites maintain a constant price. This acts a positive for a number of people (Barkhi, R., Belanger, F., & Hicks, J, 2008). But there has to be realised that it also acts as a deterrent as there are certain individuals, as the fact remains that in case of real shopping there are chances of bargain and price alteration (Denegri-Knott, J. 2006). Also it has to be realised that there is an additional price that is charged by the company for the delivery which might not be acceptable to individuals. Availability: Another important factor that affects the online shopping is the fact that it allows the customers to break free of the restrains that are placed by real shopping to localisation. It allows the consumers to access various commodities from different parts of the world (Balabanis, G., Reynolds, N., & Simintiras, A, 2006). This is one of the main reasons for the increasing popularity of the e commerce industry. Time saving: There has to be realised that in the world today, the life styles of men have evolved to such a large extent that individuals are usually restrained for time. E commerce allows individuals to conduct to their needs without going out thus saving on travelling and time. This is one of the most important factors that e commerce has become so important in the 21st century and gained popularity (Amichai-Hamburger, Y., Fine, A., & Goldstein, 2004). It allows customers to gain access to the products and the services that they require with out adding to their daily work load. Thus, it takes away from the stress and the burden of daily chores of individuals, which is its main attraction to individuals. Online stores are usually available 24 hours a day, and many consumers have Internet access both at work and at home. Other establishments such as internet cafes and schools provide access as well (Celuch, K., Goodwin, S., & Taylor, S. A. 2007). A visit to a conventional retail store requires travel and must take place during business hours. Net Information: Another important factor that has had a positive effect on the spread of online shopping and e commerce is that it allows the customers to have access to information which was not available to them earlier. Due to this most of the consumers can access the various choices and explore all their options before making a conscious decision about what they want to purchase (Bates, B. R., Romina, S., Ahmed, R., & Hopson, D 2006). The fact that it allows them access to all corners of the world only enhances the wide variety of choices which would not be accessible to them in case of real shopping. Some online stores provide or link to supplemental product information, such as instructions, safety procedures, demonstrations, or manufacturer specifications. Some provide background information, advice, or how-to guides designed to help consumers decide which product to buy. Offers and incentives: The online sites also allow the consumers to access various offers that are available to the individuals and to the public (Chan, K., & Fang, W 2007). These are of significant importance. As they offer various attractive incentives to the individuals who would be otherwise missing for them if they were to access the shopping in real stores (Chang C 2008). Recent search field: There have been a number of studies that have been conducted in the recent past on the e commerce and the scope. The main reason behind the development of these is that it allows them to analyse the reasons behind the growth of these and the factors that affect this growth. It has become significantly important given the scope of e commerce in the world today (Kai H. L., Choon, L. S., Matthew, K. O. L., & Izak, B. 2006). These include Kazuo Watabe’s book Factors affecting consumers decisions about purchasing at online shops and stores where the authors conducted a questionnaire survey regarding the purchase of a digital camera and a notebook personal computer and analyzed the survey responses. As a result of a principal component analysis on 32 items from the questionnaire, 10 factors were extracted. Furthermore, a discriminant analysis showed that the factors strengthening the trend of making purchases at an actual store were "switching costs", "real information", "first-hand examination" trust (in actual stores) and "distrust of online shops", and that those strengthening the trend of making purchases at online shops were "net information", "time saving" and "price" (Jayawardhena, C., & Wright, L. T. 2009). These results suggest that online shops can attract consumers by expanding the features of the online shops, but this in contrast may encourage consumers to visit actual stores by highlighting the merits of physical locations. Also other studies include Kanokwan Atchariyachanvanich’s paper which discusses this in details and compares the system that exists in Japan and USA (Harridge-March, S. 2006). Hypothetical analysis: While conducting the basic information search for the paper a number of surveys that have been conducted in the past have been accessed. The information that was gathered from the surveys reflect that the younger generation accesses the online shopping system more than the older generation and the main customer base extends mainly from the 18 year olds to the 35 year olds (Karson, E. J., & Fisher, R. J, 2005). Also the female section of the population makes lesser usage of the online facility in comparison to the male population. Also as has been specified in the paper researched by Kanokwan Atchariyachanvanich the Japanese have been seen to access the online services much less in comparison to the Americans. This could be due to the differences in the cultures of the two nations. Questionnaire: In the following section of the paper the questionnaire will be prepared which will look into the various factors that affect the decision of the people and gather information about the public opinion on e commerce and online shopping (Dennis, C., Merrilees, B., Jayawardhena, C., & Wright, L. T. 2009). These will explore all the various areas that are concerned with the online shopping industry. Question 1: What are the various online facilities that are accessed by you, and do you access it for specific and daily needs or for special occasions and for ordering exotic commodities? Options: Options: Often; for daily shopping; Occasionally; for specific commodities; Seldom; for special occasions; Never only for specified commodities not available locally Question 2: What are the various facilities which attract you to a web site and how do you decide upon which to access? Options: Based on the ease of accessibility and simplicity; Based on the web page design; Based on the various offers those are made available; Based on the Question 3: Are you satisfied with the price that is quoted? Options: Always; At times; Rarely; Never Question 4: If dissatisfied, what are the reasons? Options: The price that is quoted is too expensive; The cost of delivery is high; The price that is quoted is different from the price that is charged; Question 5: Which are the areas that are the most problematic? Options: The delivery is not on time; The product is not up to the quality that had been specified; The product delivered is different from the product that had been advertised or ordered; Question 6: Why is online shopping more convenient than real shopping experience? Options: It saves time and can be accessed whenever required; Allows access to different parts of the world without any hassle; Allows the consumers to avail of all the information that they need; Allows a wide variety of choice Question 7: What are the major disadvantages of E commerce? Options: Payment of bills is difficult; It does not allow inspection of product before purchase; It does not allow for any price negotiations; It has no space for exchange; The system is difficult to access Question 8: Personal information of the individual: Options: Age group: 18- 25; 25-40; 40-65 65 and above Gender: Male; Female Country of residence: USA; Europe; (specify) Asia; (specify) Africa; (specify) Australia (Specify) Question 9: How would you rate the over all experience that you have had while shopping online? Options: Excellent; Good; Satisfactory; Average; Below average; Poor Disappointing Conclusion: In conclusion it can be stated that the role that e commerce and online shopping plays today cannot be ignored and it is an important factor that contributes to the emergence of the international global market to emerge and function where there has been experienced a break down of the local boundaries and restraints. 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