Requirements for Participation in Online Shopping - Essay Example

Shalan AL-shammari comp101 Second draft Online Shopping Online shopping was introduced in the late 20th century after the innovation ofthe World Wide Web in 1991 (Miller 22). It is a system of e-commerce that enables individuals to purchase goods and services over the internet. With increasing popularity and penetration of digital technology and the internet, many firms have established online retail outlets where they sell directly to their clients. Online shopping has gained popularity and is increasingly being adopted as a better shopping alternative by many people throughout the world. Adoption of this mode of shopping has been a function of multiple factors that the paper seeks to identify. Online shoppers are motivated by increased population in urban areas which makes shopping malls crowded, thus many people prefer ordering goods and services from home. Online shopping has numerous benefits that include convenience, price advantages and also times saving. Selection of goods from a variety and also access to a lot of information that may not be available in offline shopping is another force that motivates online shopping. Most online shoppers have a motive behind their decision to shop online. Large online retailers such as Amazon and eBay began online retailing in 1995 and have developed to accommodate shoppers from all over the world by integrating all the requirements stated above. The University of North Carolina (4) assert that online buying has been marred by problems such as insecurity, lack of privacy, longer waits periods and also no hands on-inspections that are usually more important in purchase decisions. A constellation of these forces act to stall the advancement of online shopping. To enhance online shopping, majority of online retailers are Search Engine Optimized to allow potential clients locate them using the search engines. SEO optimization is a key element in boosting online shopping since most new shoppers locate online shops by searching randomly over the search engines; therefore, making a shop visible is a major step towards encouraging online shopping since more potential clients can locate it. Harnessing customers is a major business requirement. Requirements for participation in online shopping There are several basic requirements for participation and the characteristics of online shopping. According to Luo, Sulin and Zhnag (1132), ease of access to the internet has led to massive changes in the way people shop. Unlike normal shopping sprees, transactions are conducted over the internet. This requirement has been boosted by the fact that the world is constantly increasing internet penetration and also the speeds. This makes online transactions faster and efficient. In china for example, most people opt to shop online due to congestion in the shopping malls that usually waste a lot of time. Online shopping is relatively cheap and thus becomes an appropriate avenue through which low income earners can access goods that are highly priced at shopping centers at a more affordable price. In addition, online shoppers have a chance to have their goods delivered to the door after purchase (Li 509). For one to shop online there must be an electronic means of payment. These means of payment are commonly referred to as third party payment systems. The payment systems form a platform through which the buyers and the sellers can exchange goods and make payments without being in physical presence (Luo and Sulin 1135). Such online payment systems include PayPal, Payoneer, Skrill, Alipay and Payza. Another requirement for shopping online is that one must poses a computer or any other electronic device that can access the internet. This follows that the user must be literate to use the gadgets. This requirement has been met in most countries through education. Access to information is vital in online shopping. 70% of online buyers are enthusiast youths who have access to more information about new releases of goods and services. In this regard, the first characteristic of online shopping is enthusiasm. The youths and educated are enthusiast about new products which are not readily available at nearby shopping malls. As a result, online shopping becomes a viable alternative. Secondly, online shopping requires constant browsing habit that make individual more aware of new products, changes in prices and quality. An internet browsing habit also enables shoppers to identify new stores that may not have a lot of publicity like established retailers. A common trend has been identified where potential online shoppers use search engines to locate new shops and also look for new varieties of the same products (Horrigan 32). Popular brands of products are often chosen in online shopping. This is because consumers have an existing impression about then and are thereby contented with their qualities. Moreover, this implies that consumers are aware if what qualities to expect in the product. This trend is common where there is a notable price differential between online retailers and shopping malls. A good example is that online shoppers prefer buying existing brands of electronics such as computers, mobile phones or Television sets. This information is important in understanding the functioning of online shopping in today’s world. Miller (62) argues that this information is important in advising starters on how to go about their shopping on the existing retail services on the internet. Factors affecting online shopping There are several factors that influence purchase decisions of customers. Li and Ping assert that purchase intention of consumers deviate from shopping malls due to unavailability of preferred goods or due to price differentials. On the same note, there are factors which favor online shopping. Factors such as Age, gender, education level and income are outlined. According to Bellman (33), online shoppers are relatively younger, educated and have higher income compared to other members. These aspects appear to control the usage of internet in the society. Young and well educated population accounts for a majority of online shopping volumes. Consumer behaviors also change when a majority of the population uses the internet. This implies that purchase decisions are subject to individual assessment and interest rather than demographic profiles (Li 510). External environment affects online shopping. The factors are contextual and impact the attitude towards online shopping among consumers. First, the legal framework that secures online transactions. Online shoppers look out for favorable laws that ensure their safety when shopping online. This extends to certification third party payment systems to ensure that the sellers are trustworthy (Li 510). Personal characteristics affect online shopping both negatively and positively. Most consumers who use the internet much frequently are more concerned about convenience rather than experience. Their decisions are based on convenience. This is due to time constraints. In addition, new consumers do not shop online due to the fact that they perceive online shopping a risky due to their need for security. Routine usage of the internet also increases online shopping behavior. People who use the internet more often are more likely to shop online than people who use the internet less frequently (Li 511). This is because they have the ability to get more information which act as security. Product characteristics influence purchase decisions of customers. This extends to the presence of internet stores, the available products and their support services. A good number of online shoppers prefer reliability of online stores in terms of goods and after sales services. Products which require backup services are less likely to be shopped online. This is because consumers need assurances about the after sales services. The aspects influence shopping attitudes of consumers thus the consumers respond accordingly as far as online shopping is concerned (511). Li examines different facets of services provided by vendors during online shopping. The services are aimed at increasing the morale of buyers towards online shopping. The factors discussed under this section include; the communication channels and ease of contact, effective and timely responses to customers’ needs, ease at which the clients can get refunded, speed of delivery and promotion (512). Trends in online shopping Horrigan explores the trends in online shopping. He argues that online shopping has become a common place where more and more people are getting on board (Horrigan 11). This has led to improvements in terms of shopping experience. Approximately 93% of internet users in the United States have purchased an item online at least once. Consequently, 26% do at least one online purchase on a typical day (12). From the year 2002, the volumes of online purchases have increased dramatically with estimates showing a double digit growth. A good example is that a survey conducted in 2007 shows that 66% of people literate about browsing purchased something online. In 2000, only 46% had purchased from the internet (Horrigan 12). The growing incidences of online purchases have been fueled by an increasing online population. In the year 2008, 48% of Americans above 18 years were internet literate and were using it for day to day activities. The number had increased to 74% in year 2004. Horrigan implies that growing influence of the internet has huge capabilities to influence online purchases. Online shopping is practiced by more than half of American adults. Pew research observes that online shopping has reached maturity in countries such as the United States. This is because high internet adoption rates of over70% have ensured that most people have tried or participate in online shopping. This leaves probability of further growth minimal. This is compounded by the fact that internet fatigue in many private and household networks that discourage online shopping. Online retailers have started to establish offline retail outlets to integrate with their online stores (Horigan 15). As such, shoppers may prefer going to the offline retail center to gather information directly from the retailers. This explains the decline of online shopping in the United States. Another common trending online shopping is the ability of a shopper to rate a product after purchase. This allows the customers to express their opinion on a certain product and their experiences with them. The research indicates that at least 30% of online shoppers have rated a product or expressed their views after a transaction (Horrigan 16). Commenting on a product and rating also varies across age groups. More than 30% of young people with less than 30 years have commented on a product. Reviewing a product is important in enhancing quality and fixing of troublesome issues. The comments written by shopper are important in formulation of strategies among retailers (16). In a nutshell, online shopping has revolutionized how people shop globally. Online shopping makes goods and services available eat the click of a button. Technological advancements are expected to further increase the popularity of this mode of shopping. However, online shopping has been marred by challenges such as insecurity; inaccessibility of services especially in remote or less develops areas. If these issues are fixed, then online shopping is the way to go. Annotated Bibliography 1. Horrigan J. "Shopping online." Pew internet 202.419 (2008): 25-40. Web. 29 Nov. 2013. This journal provides an insight on the evolution and trends that online shopping has taken from inception. The Pew research outlines that from the early 1990s, online shopping was in constant growth with many people in the United sated embracing it. The research also addresses the issue of growing usage among the youths with much information and enthusiasm about online shopping. The journal addresses multiple trends with precise data and charts. This may be of great interest to the reader. I intend to use this information to identify the changes that online shopping has undergone since inception in the 1990s 2. Li N., and Z. Ping. "consumer online shopping attitudes and behavior: an assessment research." 8 (2007): 508-513. Web. 29 Nov. 2013. Online shopping is affected by many variables that favor or hinder its development. In their research, Li and Ping assert that here are forces of almost equal measure that act and react upon each other as far as online shopping is concerned. The factors outlined show that online shopping cannot succeed without guided interventions aimed at eliminating or reducing imperfections. Such problematic factors are; external environment, personal characteristics of buyer and also product characteristics. Knowledge on this information will enhance my understanding on consumer attitudes that affect online shopping. Moreover, this journal is important in analyzing the forces that hinder development of online shopping. 3. Luo J., B. Sulin, and H. Zhang. "The Effectiveness of Online Shopping Characteristics and Well-Designed Websites on Satisfaction." MIS Quarterly 36.4 (2012): 1131-1143. Print. Sulin and Zhang outline the basic requirements for accessing online shopping services. From their work, it is clear that online shopper need more advice and information on the product they purchase and also the means of payment. Sulin and Zhan work comes in handy in providing and insight into this issues. Outlined requirements are Internet accessibility via computers or any other electronic gadget, knowledge of the internet and products and also presence of a third party electronic payments system. I will use this information to formulate the requirement of inline shopping. 4. University of North Carolina. "Online Shopping." Community Workshop Series (2012): 3-7. Web. 29 Nov. 2013. This research outlines the importance of online shopping to consumers. With it’s through approach to online shopping, the research provides and insight into the reasons that motivate shoppers to abandon offline shopping in favor of online shopping. Reasons outlined include safety, convenience reliability and much more. Moreover, it outlines the demerits such as shipping lag time, and lack of hands on selection. This information is useful in weighing the benefits versus the shortcomings of online shopping. I will use this information to draw relevant conclusions about the various advantages and disadvantages of online shopping. Works cited Horrigan J. "Shopping online." Pew internet 202.419 (2008): 25-40. Web. 29 Nov. 2013. Li N., and Z. Ping. "consumer online shopping attitudes and behavior: an assessment research." 8 (2007): 508-513. Web. 29 Nov. 2013. University of North Carolina. "Online Shopping." Community Workshop Series (2012): 3-7. Web. 29 Nov. 2013. Luo J., B. Sulin, and H. Zhang. "The Effectiveness of Online Shopping Characteristics and Well-Designed Websites on Satisfaction." MIS Quarterly 36.4 (2012): 1131-1143. Print. Miller, M. (2004). Bargain hunter's secrets to online shopping. Indianapolis, IN: Que Pub. Read More