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The paper "Consumer Behaviour and Retail Marketing Strategy" assesses the consumer's attitudes plays an important role in formulating the retail marketing strategies to earn a competitive advantage in the global business and its influence on online shopping. …
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Report: Consumer Behaviour and Retail Marketing Strategy: Consumers Attitudes Towards Online Shopping Research Objectives: The prime objective of this study was to assess the consumers attitudes plays an important role in formulating the retail marketing strategies to earn competitive advantage in the global business and its influence on online shopping. Correspondingly, the study aimed to identify how the customers perceive online shopping. The study also emphasise on the impact of customer attitude on the online shopping and e-marketing performance. Besides, the study also reviewed the behaviours of online shoppers towards giving the high priority to the online shopping. Nevertheless, the study also focuses on exploring the role of online consumers’ behaviour and attitudes in formulating effective marketing strategy.
Research Methods: In order to accomplish the prior objective of the research, qualitative method was applied in the research. Correspondingly, in order to gather the necessary data for the research secondary data including, various books, scholarly journals and other related online sources were reviewed in this research.
Research Findings: To measure the impact of customer attitude towards the online shopping, various secondary data has been analysed. Based on the finding, the study revealed various factors that led to grow the importance of online shopping in the current scenario that will satisfy the changing demand of the customers. The findings also revealed that online retailers timely take considerable retail strategies in order to attract more and more customers towards the acquisition of products and services. Additionally, superior quality products, wider price and quality are the significant factors that influences customer towards online shopping. The result of the study thus revealed that there is high correlation between attitudes and online shopping. Nevertheless, the retailers are quite likely to attract the customers in a continuously manner in order to expanding customer base through changing attitudes and behaviour of the customers. However, thus from the findings, it can be concluded that in order to maintain better image amid theming of the customers retailer needs to track the changing attitude and behaviour of the customer to maintain the competitive advantage in the marketplace and frame strategies accordingly.
Table of Contents
1. Introduction 5
1.1. Background of the Research 5
1.2. Objectives of the Research Study 7
2. Literature Review 8
2.1. Overview of Customer Attitudes 8
2.2. Overview of Online Shopping 9
2.3. Buying Behaviours of the Customers and Online Shopping 10
2.4. Customers Attitude and Retail Strategies 11
3. Methodology 13
3.2. Research Approach 13
3.3. Data Collection Method 14
3.4. Data Analysis 14
4. Findings and Discussion 15
5. Conclusions 19
6. Limitations of the Research 20
7. References 22
1. Introduction
1.1. Background of the Research
In the context of modern business, increase in the level of globalisation has significantly led the business operations on a global context with the various marketing strategies. In this context, organisations are incessantly trying to differentiate their image through using marketing strategies keeping the customer attitude as the prior importance. This includes ensuring the quality products and services that will fulfil the demands of the consumers. Moreover, the process of developing the retail marketing strategies is highly influenced by the stakeholder’s behaviours including the consumers’ buying decisions. Emphasising customer behaviour while formulating the marketing strategies in the retail industry, organisation can ensure its competitive advantage in the market along with the high level acceptance of the products by customers. In the context of retail business or any other businesses, corporate image and quality service are regarded as essential factors that help the retail stores to perceive significant position in the market. Additionally, the phenomenon of globalisation has led the various retailers to differentiate their image through perceiving better image in the market. In this regard, customer attitude is regarded as the collection of customer feelings, beliefs, and behaviours in perceiving the thing in a particular manner, which in the retail market context are goods and services. For instance, certain group of customers have positive view regarding the utility of particular brand while other might have different perception towards the same brand. Retailing is the form of business, which enable the customers to select products and services from wider range of daily usable products to luxurious products. This business also enables to connect the large distribution channel of manufacturers at a single store to customers (Saprikis & et al., 2010).
Correspondingly, advancement of technology and globalisation has encouraged various retailers to perform their business through the online stores. Additionally, the e-commerce technology enables various retailers to offers significant opportunities to worldwide customers. The e-commerce platform has also assisted the retailers to expand their market through selling the products with online channels. The incorporation of e-commerce technology by several retailers worldwide has also resulted in certain degree of impact on the consumers’ attitudes and behaviours. In this regard, it can be asserted that higher level of convenient and easy to use has influenced consumers’ behaviours and attitude in a positive manner. Online shopping is also regarded as e-commerce business, which will enable the customers conveniently over the online mode. Customer generally performs the online operations through e-shops or stores and internet shops. Moreover, online store facilitates the retailers to distribute the products and services simply by describing it in the form of text, photos and multimedia files. On the other hand, shopping thorough the online stores is often regarded as safety procedures, specification and demonstrations of product to the customers. Similarly, the modern business in the recent years has realised the importance of online shopping due to the significant advantages that are associated with buying online than the traditional stores. It has been observed that online shopping facilitates customers with lower transaction cost, reduction of time and availability among others. Online shopping is significantly proving to be faster mean of fulfilling the demand of the customers. Besides, consumer’s attitude and behaviours in respect of online shopping were the psychological thinking of buyer involving series of steps starting from identification of products till final consumption. Through taking into concern of mentioned factors, retailer can expand the customer awareness and positively influence their behaviours through aligning the understanding of the customer’s attitudes with the retail marketing strategies (Sarker & et. al., 2012).
With respect to retail brands, enhancing the overall image of the business are perceived to be the prime objective of the business in the competitive market environment. Moreover, by ensuring the development brand image will help to ensure high profitability through its operation (Zhou & et. al., 2007). Hence, based on the discussion, it can be stated that in order succeed in online shopping business model and efficiently cater the diverse needs of customers, it is extremely important to consider changing customer’s attitudes and behaviours..
1.2. Objectives of the Research Study
The prime aim of this particular study is to determine whether consumers’ behaviours and attitudes play an important role in formulating the retail marketing strategies to earn competitive advantage in the global business. Similarly, the research study objectives include.
To evaluate factors influencing the attitudes and behaviours of the customers towards online shopping
To explore the role of online consumers’ behaviour and attitudes in formulating effective marketing strategy
2. Literature Review
2.1. Overview of Customer Attitudes
As per Sarker & et. al. (2012) attitude is regarded as the predisposed response of the customers towards perceiving particular object that reflects their behaviours. The perception of every customer differs towards the particular objects, which is important for retailers to frame effective strategies. Attitudes of the customers indicate positive as well as negative feelings influencing their behaviour to shop online. Alternatively, Lamarre & et. al. (2012) identified that attitude of the customers tends reflect their purchasing behaviour regarding the particular object either positively or negatively. Moreover, the attitude reveals the feelings and interpretation of customer towards the object. Besides, customer attitude is regarded as long-lasting and assessment of the customers for the object. In the like manner, Brosekhan & Velayutham (n.d.) stated that the attitude interpretation of the customer generates through indentifying the object that motivates them to respond in a particular manner in the certain environment and surrounding. Consumer attitudes are regarded as the composition of various factors including beliefs, behavioural intentions and feelings towards the particular things, which influences their buying decisions in the retail marketing context. Every customer has the feeling of negative and positive beliefs in regards to certain product or service highly influenced by their behaviours. According to Li & Zhang (2002) customer develop the attitude in a particular manner through resulting from their previous positive or negative experience. Moreover, the attitudes sometime may also be developed in the customers from the influence of outside environments, which significantly changes their behaviour towards the product or service. Moreover, attitudes of the consumer’s play an important role in their decision making regarding the purchase of certain products or services. Thus, properly evaluating the attitudes of the customer is important for the organisation in order to strengthen their key marketing strategies to influence the buying behaviour of the individuals. Likewise, proper evaluation of the consumers’ attitudes enables marketers to have brief picture of present and probable marketing strategies and action that they needs to take in order to influence the customers (Sarker & et. al., 2012).
2.2. Overview of Online Shopping
Given, the current high profile debate with regard to online shopping, Veronika (2013) studied the basic motive behind online shopping and concluded that various variables of demographic characteristics including the education level, trends, income level and the age factor are comparatively lower level of influence in the online shopping than the previous behavioural pattern in the online shopping. Furthermore, Wolfinbarger & Gilly (n.d.) argues that the motivation, learning, beliefs, perception and attitude are the key psychological factors which increase the trend of online shopping in the modern context. In this regard, Zhou & et. al. (2007) stated that online shopping provides significant opportunity to the customer with the presence of internet as well as physical presence along with the pre and post services and enable them to built higher level of trust and relatively lower transaction cost which in turn has boost the online market in the international scenario. Wolfinbarger & Gilly (n.d.) explored that the customers having the negative attitudes in regards to the online shopping will highly concerns regarding the payment aspects. On the other hand, consumers who are relatively having the positive attitude have less concern regarding the payment security due to higher level of trust. Similarly, the benefits including the shopping comparison, low prices, high availability, convenience, wider ranges of products and retailers, time saving and timely delivery, low costs, improved service, high response among the other factors are significant factors that increase online shopping trends. Additionally, Saprikis & et al. (2010) argues the fact that the numbers of customers who tends to shop regularly are increasing at higher rate due to availability of wide range of products to chose and shop at any time. On the other hand, study conducted by Katawetawaraks & Wang (2011) reveal that growing use of internet and its importance in the daily life of customers has widely influence them to shop products and services on a frequent basis. Moreover, it also provides wide range of information as well as the choices accordingly through which they can compare the product and its price, and make choices of the products according to their needs and preferences. Likewise, it also suffices the need of modern day’s customers who seek for high level of convenience and speed. Moreover, retailers also keep track of motivational and major issues that customers faces while shopping online and accordingly make the strategies to increase their sales.
2.3. Buying Behaviours of the Customers and Online Shopping
According to Haghshenas & et. al. (2013) buying procedure of the customers is influenced by controllable and uncontrollable factors, which includes involvement of group, social, psychological factors, situational factors as well as the marketing strategies of the retailers. In the current business environment while buying product and service, consumers have substantial knowledge about the existent of market condition wherein they can avail the alternatives. Moreover, the preferences of the consumers in buying product arise due to existence of perfect market in the respective operational segment. Thus, marketer negotiates with the customers in terms of price of the product in order to attract more and more customers (Kiyici, 2012). Besides, online retailers emphasises towards analysing the customers buying behaviours through targeting the different segments of customers while determining the marketing strategies (Moisescu, 2009). In addition, Durmaz (2014) identified the factors influencing the buying behaviours of the customers, which include social, cultural, personal and psychological aspects. Consequently, customers are far more capable enough to mitigate their own problems through availing the wide range of product through online stores in order to fulfil their requirements. Thus, it is vital to mention that consumers generally make their buying decisions through gathering an array information and knowledge regarding the particular product they prefer to buy (Saprikis & et al., 2010). Moreover, online retail stores enable and provide wide range of products and services through their search engine in order to fulfil the satisfaction of the customers (Moisescu, 2009).
2.4. Customers Attitude and Retail Strategies
According to Anić (2010) retailers are increasingly using various internationalization and global strategy to enhance competitive advantage in the market with the objective to increase the global sales and profitability. Additionally, in order to succeed in the online retail market, the retailers need to acknowledge the international culture, perceptions of the behaviours and consumer influences while taking key decision for the wider acceptability of products and services. The study also reveals the fact that designing retail strategy, managers needs to consider both consumer attitudes as well as consumer segments in order to derive successfulness of the strategy (Anić, 2010). Dragicevic & et. al., (2012) concluded that retailers need to improve their retail strategies of marketing according to the changing behaviours of customer through diversification of their offerings, providing reliable and important information’s and adoptability of improved payment conditions. Likewise, the traditional concept of retail shopping has been changed with the increased level of globalisation and technological advancement to online shopping. In this context, various global retail brands and marketers have espoused and adopting diversified ranges of strategic frameworks to develop their identity into the mind of the customers, which can bring changes in the attitudes of customer (Ivanauskienė & et. al., 2012). Baker (2010) stated that through meeting the needs of the consumers’ retail stores can enhance their position in the marketplace.
3. Methodology
In any research study selection of proper technique is very important for ensuring the reliability and validity of the study conducted. In this regard in order to attain desire aims selection of accurate procedures in line with the objective of the research is essential. The purpose of the research is to make assessment of the factors influences the customer attitudes towards online shopping. Thus, in order to derive the desire outcome in the research specific research design has been followed in this research in order to complete the study in a determined time span. This research comprises of series of activities, which were necessary for conducting the entire study in an effective way (Kumar, 2010). During the first phase, it is important to determine the brief understanding of the research topic in order to determine the research objective, which in customer attitude towards the online shopping and the its affect over the retailer marketing plan. In the next phase, after determining the research objectives. The next phase will emphasized towards the data collection procedure. In this particular research, secondary sources method has been utilized in order to extracted data from the survey for the effective analysis of the research subject. Subsequently, the collected data were analysed with the assistance of qualitative approach. In the last phase, an in-depth analysis of the collected data will be conducted to ascertain proper conclusion and finding (Bergh & Ketchen, 2009).
3.2. Research Approach
The research approach in any particular study primarily is the process through which the relevant data and information are acquired related to the particular research subject. The study can be conducted using various forms of research approach including qualitative, quantitative or as well as using the combination of the both also known as mixed approach. Correspondingly, it can be stated that utilising mixed approach in the study is often difficult to manage. In contrast, it has been argued that qualitative method offers higher level of flexibility in conducting research as well as it facilitates the acquisition of a comprehensive understanding of the research issue or topic. Thus, in this research qualitative research method has been utilized while the quantitative method has been disregarded. Moreover, the use of qualitative method provides an understanding that is relevant and informative. Qualitative research provides richer explicatory data and enables in-depth examination of complex phenomena dealing wit human factor in a way that cannot be attained with the use of quantitative method (Luton, 2010).
3.3. Data Collection Method
Data collection is an essential element in a research study to accomplish the desired objective of a research study in an effective manner. In this particular research, required data have been gathered from secondary methods. In this context, for attaining the aims and objectives of the study, emphasis has been laid on utilizing secondary sources for the relevant information. Relevant data and information were obtained from lately published and reputed journals, books and online sources to ensure utmost reliability and validity of the gathered data. The information gathered was significant in determining a theoretical comprehension for the research objective (Ritchie & et. al., 2013).
3.4. Data Analysis
The analysis of the research data is a most important aspect that needs the prior consideration in any research while conducting a particular research study in significant manner through having better acceptance for the readers of the research. Thus, the data analysis in the research method significantly aids in providing the validity and reliability to the research study. In this research study for determining impact of customer attitudes in the online shopping, data had been obtained from secondary sources. Moreover, iterative data analysis has ben performed to generalise the data obtained from the secondary sources (Namey & et. al. 2007).
Correspondingly, the analysis of secondary sources have been done through analysing the different secondary sources in a best possible manner through recognizing the customer attitude in online shopping and its impact on the retail strategies.
4. Findings and Discussion
In this research study, the primary data has not been gathered, thus in order to acquire necessary data secondary sources comprising various sources has been used such as published articles has been analysed those are related to subject matter of the research study for the proper findings. In the current scenario, peoples are widely engage in online shopping owing to several reasons that influences their behavioural attitudes towards online shopping, which includes demographic backgrounds, beliefs, lifestyle and among others. The various studies reveals the fact that the concept of the shopping in the retail market has constantly been transformed into online shopping due to increase in the level of e-commerce and e-marketing activities by the retailers (Jacobs, 2014). In this regard, the study of Sultan & Uddin (2011) revealed that the buying decision of customer and their attitude follows a series of steps starts from recognition of problem till the post purchase behaviour. The buying behaviours process of the customer has been depicted below:
Customer’s Buying Behaviour Process
(Source: Sultan & Uddin, 2011)
It has been observed that customer’s through the online shopping finds diversified and extensive variety of products items, which could be significant business opportunities for the retailers to reach wider section of customer in different areas. Moreover, the findings of secondary research also suggested that online stores have adopted diversified strategic framework with the aim to make the website and develop their special identity into the minds of the customer that influences their buying behaviour and attitudes through proving high level of convince in online shopping. Moreover, the online retailers have also taken their online market far beyond than just the everyday grocery items to the wider sections through digital technology that allowed them to meet with the changing demand of customers. Schenck (2010) argued in this regard that effective sale promotional measure by the retailer is likely to increase the chances for customer retention that will assist them to grow its profits and additionally, with high customer spending and addition on new customer in the shopping. The facility to e-mail provides the solution to promote the offers most widely than other media options (Schenck, 2010). Besides, the online shopping is also providing the significant platform not only to the marketers, but also to the customer to interact with the massive customers and products respectively (Ranganathan & Ganapathy 2002).
Study of various literatures and journals also notified the important fact that quality while delivering the products to the customers plays an influencing factor to change the perception of the customer in respect of online shopping. Besides, the quality of the product also influences their attitude to make repetitive purchase and distinguishes the particular retailer’s product with the rival firms. Contextually, online store offers superior quality of products as compared to most of its competitors offering products or services through physical stores. In this context, it is worth mentioning that retailer needs to work in a continuous manner along with its suppliers to ensure quality and deliver in best possible to its ultimate customers. Additionally, customer attitudes and behaviours can be influenced efficiently through various tangible and intangible means of e-marketing. Simultaneously, through conducting strategic promotional activities and implementation the same has significantly assists retailer to generate greater awareness of customers in worldwide (Mullick-Kanwar, 2014). In addition, online marketer regularly monitors the perception of consumers based on attitude of the customer, which is quite different from the traditional retail consumers. Based on the assessment of secondary sources it be concluded that ‘attitudes’, ‘subjective norms’ and ‘perceived behavioural control’ of the customer influences the intention of the customer, which ultimately derive the behaviour of the customer towards the particular product and services (Bird & McClelland, 2010).
Planned Behaviour of Customer’s
(Sources: Bird & McClelland, 2010)
The factors through which the customer is attracted towards the online shopping include higher availability of merchandises, inventories and choices among others. On the other hand, in the current scenario, social media involvement and its importance are the key method through, which marketers of retail market gets connected with consumers and communities in order to promote effectively and efficiently with the customers (Kirkpatrick, 2010). Correspondingly, the through the secondary source it has also been affirmed that the customer who are highly satisfied plays an important factors that motivates to shop in an online manner. Likewise, the secondary research also depicted that online retailer try establish to balance the need and proper value of money through influencing their behaviour. Moreover, the various studies also revealed in the currently scenario people highly seek to contribute positively in respect of online shopping is the main reason due to which online shopping has been continuously growing. According to Odhiambo (2012) the factor including the convenience, better pricing, variety, compulsive shopping, discreet purchasing and relief from the crowd are the key factors that add major advantage in the online shopping than traditional shopping.
According to the analysis of various secondary researches in this study, it can be ascertained that customer attitude and online shopping is widely related with each other. From the various secondary sources information regarding the attitudes and behaviour of consumers in the online shopping signified that people are becoming highly aware about the advantages of online shopping, as they consider the online shopping is high eco-friendly activity comparatively to traditional shopping (Heinemann & Schwarzl, 2010). Furthermore, apart from the mentioned points, the way in which products are packaged and distributed to the end user when shopping online, also helps to differentiate the products of one brand from another, along with bringing noteworthy changes in the customer’s perceptions and loyalty in the long run. Hence, this discussion also made it apparent that e-marketing activities of the multinational retail companies, while operating with the online stores consider the customer attitudes a key priority to develop and gain high public gratitude and build a better image among others globally (Carroll & Broadhead 2001).
5. Conclusions
Based on the above discussion, it has been quite apparent that customer attitudes and online shopping is highly correlated, which significantly affect the retailers marketing strategies and action. The objective of this research study was concentrated towards factors influencing customer attitudes towards the online shopping. In this context, the study was conducted with the help of various secondary resources that comprised reliable and authenticated literature, peer reviewed journals and articles. Correspondingly, the study findings revealed that retailers marketing strategies, having the strong impacts over changing the attitudes of the customer towards the online shopping in the current competitive scenario. The finding of the secondary source revealed that in the modern scenario online stores have significantly offer wider ranges of products and services based on the likeness and demand of the customers. In this regard, the research has helped to identify how the attitude of the customer constantly changing within the context of online customers more extensively. Moreover, the acceptance level of retail online products has also apparently identified to change in today’s context. The research findings, suggested that retailers dealing with online offerings of products and services focuses on developing its promotional activities which has raised the awareness of the customers. Moreover, the demand for online has also been substantially raised in the global market due to wider range of items and services. Online retailing strategies were developed keep in mind that will provide global image to the brand in the market. Likewise, the importance of social media including Facebook, Twitter or LinkedIn has also led to connect people highly associated and attach with the customers
Conclusively, through considering the considerable changes in the customer attitudes and behaviour retailer takes noteworthy changes in their promotional activities along with other attractive mechanism to attract potential customers. Correspondingly, through adding more uniqueness in the products and services retailer attracts attention of customer in a particular manner. Hence, based on the research findings and discussion, customer attitudes and behaviour is highly linked with online shopping behaviours. Moreover, in this regard, e- marketing strategies has also emerged as an important and one of the most crucial aspect the plays an important role in increasing customer towards the online shopping in considerable extent. Notably, the findings from the research stated the significant benefit and advantage of online shopping has considerably boosted the trend of online shopping. Simultaneously, it can be ascertained from the above discussion that customers are also satisfied with the use of online websites, security in the online payment transaction, high quality of products and services with timely delivery of their stuffs while using the website. Moreover, online shoppers and probable customers are highly concerned regarding the content in the design of the website. Based on this fact, it can be ascertained that retailers are successful in maintaining productive online retail stores through wide range of products and services. Moreover, this also signifies that the retailers dealing within online shopping are highly consensus regarding the alignment of the consumers’ attitudes and the behaviours in framing their strategies.
6. Limitations of the Research
The research provided rich understanding regarding the impact of consumers’ attitudes towards online shopping. Nevertheless, the research study possesses a few limitations as well. In this regard, the research is solely based on the analysis of the secondary data which has reduced the validity of the research. With this particular approach, the reliability, accuracy and validity of the results obtained can be argued to be less trustworthy. Systematic and predetermined timeline to complete the research further limited the scope of the research study. Moreover, the utilization of mixed approach has been significantly time consuming. Besides, the research subject is wider while utilization of only the secondary sources discarded customer personal view in the findings. Nevertheless, both primary as well as secondary methods in the data collection would have facilitated eliminating these limitations. Therefore, there lies a substantial scope for conducting future research in order to acquire an in-depth understanding regarding the customers’ attitudes towards online shopping and its impact on retail marketing strategy.
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