Factors that Influence Online Shopping - Literature review Example

Online Shopping xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Instructor xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Factors that influence online shopping Internet is the new platform, not only for communication but also a place where buyers and sellers who deal with different products meet. With increased usage of internet, there has been a significant rise in the number of people who are buying and selling goods and services through the web. This is a golden opportunity for those who would like to exploit the potential provided by technological advancement. Designers are relying more on online solutions to showcase their wares as well as source for customers for their products. To increase awareness on their products and be in a position to sell more, designers have to understand the factors that influence online shoppers’ behavior. This research explores the factors that influence the online shopping behavior. The literature review seeks to establish the existing knowledge as far as online shopping is concerned. It starts with reviewing existing literature on the characteristics of online shoppers; this is followed by the benefits that an online seller will get through such a platform. It is also important for an online seller to understand the factors that influence or discourage online shopping. Online customer Hollingshead and Abraham (1999) state that sellers who are looking forward to sell their products online have to understand the characteristics of those being targeted. They are of the view that those who shop online are: people who use internet frequently, young and are above average in terms of education. Looking at the first characteristic, Hollingshead and Abraham argue that those who have access to the internet especially at home have a higher possibility of buying stuff online than those who depend on the public connections. The number of hours that one spends on the internet has also been found to influence the behavior of online shoppers. An explanation that has been offered towards this end dwells on the fact that this category of people come across mix of information that includes products which are available for sale through the World Wide Web. Given that the use of internet has picked where more people across all age groups are relying on internet to get solutions, those who are interested in selling their products through the web have a bright future. They only need to position themselves right through appealing to the sophisticated twenty first century customer. When it comes to age, studies have found that young people form the majority of the internet users. These users are mostly interested in current trends, this means that a cloth designer who deal with latest trends have a great opportunity as far as this population segment is concerned. Hollingshead and Abraham (1999) argue that those who target a relatively younger market have increased chances of making higher sales compared to sellers who are interested in older customers. This could be explained through looking at the demographical patterns, majority of the population in a significant number of regions in the world is young. The level of education has also been cited as a factor that relatively influences the internet use. Previous studies have found that those who are using internet frequently to solve their problems are people who can be described to have attained an above average education level. Therefore while targeting this group of people; the online seller must position himself or herself in a manner that will appeal to this segment of population. Chronis (2001) highlights the benefits that a designer might get through engaging in online selling. The designer who opts to use online shopping to showcase his or her wares, get a wider platform through which the products can be marketed. The audience that is reached through this platform is wider compared to the traditional means of advertising and selling. Here the designer can decide to reach a specific market or larger demographic mix. Chronis argues that gathering information on the web about the products being presented for sale is an easy task and therefore customer will be in a position to make their decision quickly. He concludes that online shopping for designers is the best as it quickens the lead period. To the customer online shopping present a wide range of selection, allowing him or her to get the needed product at a relatively low price. This can be seen as a disadvantage on the sellers side but those who present their goods in a unique way and make a name through selling quality product will always attract customer regardless of the price they are offering. Chronis (2001) asserts that online sellers need to effectively create a niche for themselves through branding Online shop presents the seller with an opportunity to present his or her products to a wide range of audience within a short time. When a product has been posted on the website, chances of being seen by internet users from across different parts are very high. When compared to other means of marketing and advertising, internet is flexible and versatile. A user does not have to be present on the web at a particular moment to see the product. It continues to be available and the customer may see it whenever they are looking for such a product. Therefore an online seller only has to make arrangement for continued presence in the web to present the customer with the product which they need. Whenever a customer searches for similar products on the world, it should be available to increase the chances of being bought. The convenience provided by online platform makes online shop an alternative selling and buying point. One only needs to click on the button and the products which are needed pop up. The buyer does not have to move up and down looking for elusive customers, he or she only needs to present the product in a way that appeals to the targeted customers and sales will be made. The customer on the other hand does not have to move from one store to the other, using a search engine; one can get a variety of products to choose from. Comparison in terms of prices, quality and other characteristics that the consumer depends on to choose from are allowed. The customer is basically spoilt for a choice; there is a wide variety of items to choose from. There is also a segment of customers who do not like crowding in shopping stores buying their favorite products, they like doing it in a relaxed manner. Online shopping presents them with the environment that they need. One does not have to crowd in malls especially during the festivals and special occasions when people are flocking the stores to buy their favourite products. A click on the button will provide the much needed solution without having to move an inch. Online sellers should take advantage of this and increase their chances of selling their products to this group of people. Make it convenient for them to get the products at a point near them and you will always make a kill as far as sales are concerned. Online shop is open twenty four hours a day as opposed to the conventional shop which is operational for a few hours in a day. This means that the customer will be able to get the products he or she needs at any time of the day. While the seller at the heart of Australia is retiring for the day, another customer in Canada is searching for a product early in the morning. This presents a golden opportunity for the customer and the seller to get what is needed at any time of the day. One is not worried that the shop will be closed at a given time of the day, and the customer will not get the much needed product. The online seller only needs to update the website with the available products as well as the prices for the customers to have a look at them at any time of the day or night. (Hower and MacInnis (2000) The cost of establishing the online store is another factor that has been cited as far as benefits that an online seller enjoys. To presents goods for sale through the internet one only needs to own a website and pay for web design services, issues of rent, goodwill and other requirements that comes with a brick and mortar store do not arise in this situation. The cost of operations is highly reduced such that the producer is able to sell the products at a cheaper price compared to a person who is required to pay for all those overheads that comes with running a physical store. With proper organization and getting the needed expertise an online shop can be operated at minimal cost therefore allowing the owner to sell the wares at a price that attract shoppers. Factors influencing online shopping After understanding the characteristics of the online shoppers and benefits that are presented through selling and buying online, it is important to explore the factors that influence people to buy online. Kotler (2003) has cited convenience, influence from friends and relatives and low prices as some of the factors that make people buy products from online store. Kotler states that online shopping presents a unique opportunity to those who have busy schedules such that they have no time to visit a shopping mall in their city to do the actual window shopping and ultimately buy the product. One only needs to search for the product in the internet and within a few minutes an order will have been made. Online shopping presents an opportunity for buyers and sellers who are distance apart to meet. One does not have to travel long distances in order to exchange goods and services, a click on the button will have brought the two parties close for a transaction to take place.Kotler also cites influence from those who are close to the shopper as a great factor as far as online shopping is concerned. These are the people who will provide information about the product and its availability in a certain website and platform, therefore those who are interested in selling their products through the web can only ignore networks at their own peril. Factors the discourage online shopping Although online shopping has picked, there are those who are still not receptive of the idea of buying products through the web. A host of factors have been established to contribute to this scenario. Elasmar and Bennett (2001) cite lack of skills as one of the factors that prevent some customer from participating in this market. They are not comfortable buying products from the internet as they are lacking the necessary skills which can guide them through the process. There are those who are afraid of buying products due to the perception they have created on online shopping. There have been scams related to online shopping, where buyers have lost their money or exposed themselves to fraud after providing their personal information. This only serves to deter online shoppers from trusting some of the sellers in the online market. Bibliography Chronis, M.(2001) Cyber Media, Advantage Elasmar, M and Bennett, K (2001) Predicting Online Shopping Behavior, Convention Communication Technology and Policy Division Parser Hollingshead, C and Abraham,J (1999) Marketing on the Internet, Providing Customer Satisfaction, Marketing Mix Hower, W and MacInnis,D (2000) Consumer Behaviour,United States of America, Houghton Mifflin Company Kenny, D (2000) Contextual Marketing; the real business of marketing, Harvard Business review Kotler, P (2003) Marketing Management, 11th edition, New Jersey, Prentice Hall Read More