The Factor Influence on On-Line Purchase Behavior

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Table of Contents

Introduction
Simple to use
Competitive Prices
Easy to place an order
Demographics
Works Cited

Introduction

In online shopping condition, social, culture, personal, and psychological factors still have an influence to play in determining on-line purchase behavior. The internet is full of disadvantages and advantages for customers. Perceptions of various aspects of online shopping or buying vary among consumers, and when these variations are correlated with demographic characteristics, it has implications for marketing managers (Rossi 32).

Simple to use

Just as ATM transformed the people experience in the banking sector, the internet has changed the rules of doing business. Nowadays, customers are able to do online transactions because the internet provides them with convenience and control.

Even if life becomes complex, most consumers have been found to look for simplicity when they are about to buy items. Therefore, most websites nowadays, are simple to use and make transactions over the internet hassle free (Underhill 53).

Competitive Prices

According to Chow (2001), one of the advantages of online shopping is that goods and services are cheaper because many items can be found within a click of the mouse at the same place.

For example, customers around the world have been attracted to U.S. websites that sell books and CDs for far less than the retail price in their respective countries even after paying shipping and postage costs. Another study carried out by Cheskin research and Studio Sapient/Archetype in 2000 found that, competitive prices were the main reasons why people are buying online (Chow 23).

Easy to place an order

Another study carried out by Cheskin research and Studio Sapient/Archetype in 2000, found out that it is easier for a customer to place and purchase an order over the internet. Additionally, customers have been found to be able to visit virtual shops or stores at any time of the day, whether in the morning or at midnight.

Consequently, the traditional barriers of times that used to be there are no longer applied when a customer wants to buy goods or pay for services online. External environment is another factor that will have an impact on a customer.

Online shopping behavior and attitudes consist of three dimensions, the first is the system of third party recognition, and these are companies which ensure that a vendor is trustworthy online (Underhill 54). The second dimension is the legal framework that has been put in place to protect consumers from any kind of online fraud or losses.

The third factor are competitors that provide similar products (goods or items) or services or both (Chow 24). This can be argued that in case there is fewer numbers of online vendors, the possibility of vendors being opportunistic in order to maximize their profits will increase, thus transaction cost will increase and consumer intentions to revisit a specific online shop will decrease (Underhill 54).

Demographics

Demographics include such variables as gender, age, level of education, time online and income. Rossi (2003) has stated that online users are relatively young, wealthy, educated, although this gap is gradually narrowing because older people are getting to acquire necessary knowledge and skills for the use of the internet.

Demographics has been found to play an important role in online shopping. Rossi (2003) has stated that customers have been found to purchase more frequently in virtual stores that are less experience-oriented and more convenience-oriented. Online shopping behavior and attitude also include the way consumers share information and value with others consumers (Rossi 33).

Works Cited

Chow, ching. Impact of ECRM on Online Shopping Behavior. London: Chinese University of Hong Kong, 2001. Print.

Rossi, Audrey. Generation Y’ Online Shopping Behaviors and Habits. New York: San Bernardino, 2003. Print.

Underhill, Paco. Why we buy: the science of shopping. New York: Simon & Schuster Publisher, 2008.Print.

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