The Body Shop Australia

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Introduction

The Body Shop Australia is a shop that deals in beauty products such as skin care, hair care, lotions, make up, and community trade. Although The Body Shop Australia currently offers online shopping to its consumers, safety and security over the cyberspace has become such an important issue in determining consumer behavior.

The consultancy thus intends to introduce a Secure Online Shopping System (SOSS) for The Body Shop Australia’s customers. Secure online shopping system is a platform where consumers of the product are able to make orders on particular product and make payments using their credit cards.

The SOSS platform will ensure the safety and security of those cards. Research carried out by different organizations shows that the level of trust on internet shopping of many Australians has increased making them willing to shop online as long as their security is ensured (Access Economics 2010).

Since the development of electronic commerce practitioners of E-commerce have strived to gain insight into consumer behavior in cyberspace. SOSS target to woe global consumers of beauty products to make their purchases online.

Economical and social responsible purchasing behaviours of consumers have become significant determinant of consumer behaviour therefore SOSS will ensure that consumers’ social and economic welfare is well thought-out.

Consumer Behavior Report, 2009 indicates that online consumers continued to use the internet amidst the economic recession experienced in Europe. According (Access Economics 2010) the highest number of internet users in Australia are those aged between 25 to 44 years.

It further state that online purchases amongst these internet users are done by those in their late teens and early twenties. As a result, the SOSS platform will be used as that mainly target the individuals in the age bracket that use internet shopping frequently-college students.

Issues facing consumers in adopting SOSS

Each year, vast numbers of new products in different groups are launched globally. Factors such as growing advertising costs and increasing competition have made the successful implementation of a new product more difficult in recent years (Aaker 1996, p.34).

The concept of E-commerce in relation to the topic of online consumer behavior has been examinined by different researchers in a variety of contexts. Despite the immense progress that researchers from different business disciplines that have made on this vast and new concept, none of these studies has focused on the security dimension of online shopping.

Thus, introduction the security aspect in online shopping services to be offered at The Body Shop of Australia will attract if not all, most online shoppers of beauty products.

According to reviews done by different researchers indicate that earlier researchers in these field mostly draw theories from classical consumer behavior, such as personality research, behavioral learning, attitude models, and information processing (Folkes 1988; Skinner 1938; Bettman 1979 & Fisbein 1967).

To achieve this broad objective of increasing online customer base for the products offered at The Body Shop of Australia, we analyze online consumer behavior in a systematic manner using various consumer behavior theories and models.

Consumer behavior theories have been applied to study online consumer behviour; however, gaps still exists between the online and offline consumer behavior that warrants further studies. Koufaris et al (2001) asserts that the previous studies have been relatively fragmented with contradictory results.

A large body of knowledge has been developed in consumer behavior analysis by influential works of Engel et al 1968; Nicosia 1966 among others. A large part of these literature concerns differentiable products, thus, may not be explicitly applicable in a service such as online shopping. It is therefore necessary to understand the intrinsic differences in between offline and online consumer behaviours.

The other studies on online consumer behavior have largely focused on how consumers adopt and use online purchase. Particularly, the emphasis was directed on the past history of consumer online purchasing adoption and intention.

In this era of digital economy, companies and organizations have realized that consumers and competitors are just one click away. To succeed in the e-business era therefore, companies need create adept initiatives and maintain long term sustainable relationship with loyal customers (Cheung et al 2001). SOSS is a proficient platform that will help The Body Shop of Australia to remain relevant in this digital period.

Consumers are generally influenced by two factors: internal influences and external influences. Internal influences are personal feelings and thought that includes; self-concept, motivation, attitudes, emotions and perceptions.

These factors generally influence perception, purchasing patterns, and attitude customers develop towards a product or a service offered by business.

Besides, these factors are directly linked to internal and external interacting social aspects that control the pattern of though and expressed feelings. Resonating on the facets of internal and external influences, this paper develops a comprehensive matrix for purchasing patterns exhibited by customers.

Motivation and emotion

Emotions and motivations often serve as the emerging forces within consumers that activate certain behaviours. Emotions are described as temporary state that show present changes in motivations whereas motivation are persistence need that stimulate long term goals in consumers.

These emotions control direct and indirect behavior inclination that arouse the instinct to purchase or refuse to purchase. Though a temporary state of mind, emotions challenge the market preference and direct judgment to buy. Therefore SOSS will impact on consumer bevaviour by arousing their motivation to buy products from The Body Shop Australia.

Attitude and Perception

Attitude is the general evaluation that consumers engage in before deciding to purchase a particular product or service. Attitudes are direct personal experiences that are influenced by consumers’ personality, advertisement, family and friends. Perceptions are unique ways through which consumers internalizes and interprets information about a product.

Consumer engagement is essential towards winning and maintaining a client especially in a competitive market setting where the best offer carries the day. The offer could be in the form of price, quality, and quantity.

When information on attitude is verifiable, it is easy for a company to execute a well researched plan within allocated resources. The processed information is used by consumers in making “the buying decision,” as such, SOSS provides consumers with the platform to share information on internet.

The buying decision

There has been substantial research on consumer behaviour, examining the decision process, and influences upon it, in terms of store and brand characteristics and consumer behaviors (Babin et al, 1994, p.45). Central to the theories of consumer behaviour is the conviction that different consumers go through markedly complex decision making process that is influenced at different stages by a number of possible variables.

The buying process normally begins with the need for a particular product or good. The need that is created prompts the consumers such for available information concerning the good or service that can satisfy that need.

Having considered the available information, consumers then evaluate alternatives before making a purchase (Kotler, 1997, p.17). SSOS will not only avail the information on the product, but also ensure that customers security of their information making shopping at The Body Shop of Australia convenient and safe.

The buying decision model. Source: (Kotler 1997).

External influences

Several external influences affect online consumer bevahiour. These influences include individual culture and sub-culture, group associations, social cultural and household structure. Under SOSS we classify external influences as negative externalities that determine consumer behavior.

Culture and subculture

Consumer bahaviour studies have shown that consumers’ attitude, opinions, belief, and values shape consumer buying decisions. Products that consumers view to be violating their cultural belief often attract fewer customers. In fact, cultural belief influence and dictate how consumers meet their needs.

Often, customer tend to associate satisfaction and value of a good on cultural believe or inclination in line with preset societal mind set. Culture controls dressings, morals, and even association. As long as a service or a good is associated with positive result, the sales for such a good are likely to sky rocket.

On the other hand, the reverse often leads to damning or uncomfortable response from potential customers who may appear reluctant to play along. Therefore, acceptance of a good or service is a reflection of its responsiveness to culture and a target group’s social affiliation.

Household structure and groups

The household structure basically represents the household composition in terms of age, occupants and their incomes. On the other hand, groups in the context of consumer behaviour represents individuals who share set of common values, norms and beliefs. The group and the household to which a consumer belongs to has a significant influences on consumers behavior that is influencing the decision making process.

Consumer response

The aim was to find respondents who are the potential, if not actual customers of The Body Shop Australia who fell within the category of students described in the introduction. One reason that informed the decision was the fact that such respondents are categorized as the most internet shoppers in Australia.

Secondly, we wanted to make sure that the respondents were aware of the brands investigated. Thus, a certain degree of familiarity with internet shopping and the security risks was a prerequisite among the interviewees, in order to carry out meaningful discussions.

As a result, consumers who did not show any familiarity of the brand were not included as respondents. Since all the four interviewees were obviously aware of the existence of the internet shopping, we tried to link their responses to their previous association with parent brand that is traded at The Body Shop Australia under offline shopping.

To make the responses inclusive despite the few numbers of respondents interviewed, the college students were selected from four different colleges across Australia. The respondents differed in age but fell within the age bracket described as internet shoppers (aged between 25 to 44 years).

However, it is worthy to note that due to the limited number of respondents the interviewees could have been more representative.

The entire interview questions and answers given by respondents are attached in the transcripts as appendix I. Apply Model of Intention, Adoption, and Continuance (MIAC), to investigate the concepts of intention, adoption, and continuance on the process of online consumer purchasers. Lee (1999) focused on online repurchase and argued that consumer trust and satisfaction were the key determinants of continued purchase from a particular shop.

Model of Intention, Adoption, and Continuance (MIAC). Source: Cheung et al. 2001

This model is an integration of two models of consumer behaviours: Oliver’s expectation-confirmation model (Oliver, 1980, p. 19), and Fishbein’s attitudinal theoretical model (Fishbein 1967, p. 29).

Attitudinal theoretical model (Fishben 1967) is used in examining the variables informing consumer purchasing intention and adoption. According to this model, behavior is principally determined by intent.

Other factors like, perceived behavioral control, subjective norms, and attitudes are also shown to be related to an appropriate set of significant normative, behavioral, and control values about that behavior. However, this model does not explain consumer behavior in relation to repurchase.

Oliver’s’ expectation-confirmation model, on the other hand, focuses on post purchase behavior of consumers. This model is used in explaining consumer satisfaction with a service or good through their repeat purchases. Consumer satisfaction is the key focus of this model and expressed via the gap that exist between the perceived performances (Oliver, 1980, p. 45).

From the analysis the impact of consumer issues on online consumer behavior is markedly significant. Goldsmith (2000) found that personal innovativeness of individual consumers is key personality characteristic that give explanation to consumer online behavior.

Janvenpaa et al. (2000) contends that consumers’ trust on the internet is a significant determinant of online shopping. From the above reflection, it is vital for The Body Shop Australia to embrace online marketing and introduce anti age natural lotion product as the population of Australia embrace the need for natural beauty products.

Besides, their secure SOSS system will play a significant role in ensuring that this product, information on how to use it, therapeutic consultation, and purchase is protected for privacy.

Recommendations

In the face of globalization and the development of e-commerce competing companies apply strategic techniques to in their products and services to avoid being obsolete.

The companies compete through product differentiation through focusing on the service-dormant paradigm with investments in new technology, people, and policies. These investments are imperative to organizations as because customer’s attitudes and motivation significantly influence the consumer behaviors (Koufaris 2002).

The earliest marketing principle of marketing was the model introduced by McCarthy (1960) was the 4Ps marketing mix, defined by Product, Place, Price, and Promotion.

This marketing model was further modified by (Bettman 1979, p.78) to include the service industry introducing three additional variables: People, Physical evidence and Process (Blythe, 2006, p.67).

Due the unique characteristics of the service industry: intangibility, inseparability, heterogeneity, and perishability. Booms and Bitner (1982), argues that all people are indirectly or directly in the service encounter, specifically the organization employees, personnel and customers.

Kotler et al. (2006), defines Product as anything that can be offered to the market for acquisition, consumption, attention, and use. The product can include the services, places, persons, organizations, physical objects and ideas.

From this definition the new service: SOSS that I want to introduce in the operations of The Body Shop Australia fall under a service. The reality of e-commerce in the market guarantees that the service will be very important in ensuring that new and existing customers are given the opportunity to shop cheaply and conveniently for the beauty product with an assurance of privacy and confidentiality.

The Price is the amount charged for a product or service offered by a particular business organization (Kotler et al, 2006, p.32). The service that SOSS creates is relatively inexpensive since customers will not be charged for using online shopping service rather, they are charged for the product and deliver costs.

Apart from these direct costs the customers will have to incur internet service charges by their providers. SOSS therefore reduces the product cost and time incurred by offline shoppers for this beauty product by maximizing on economies of scale since this natural beauty product is likely to sell in large scale.

Process refers to the mechanisms, procedures and flow of activities through which a service is delivered to customers. Blythe (2006) notes that the process of delivery is an important variable that creates a difference to the benefits the consumers in the service industry reap.

In a normal offline buying scenario, customers are likely to queue for the service or product. This is quite time consuming as the customers have to be present physically. SOSS will eliminate this process by timely delivery thus eliminating the requirement of the physical presence of customers at the shop.

SOSS customers will be able to receive the products they have ordered via the online portal. This will ensure that the products are delivered to specific customers at the right time.

Customers will be required to provide information about their physical address to facilitate the process of transportation and delivery. With information in their database SOSS take into consideration the Place aspect of 7Ps marketing principles.

Physical Evidence The environment in which a service is assembled and where the customer and the service provider interact is what is referred as Physical Evidence in 7Ps marketing principles (Blythe, 2006, p.67).

These services include all the tangible representation of the service being offered, such as, business cards, brochures, reports and signage. For example, in The Body of Australia Shop, the design, furnishing as well as the neat arrangement of products on the shelves that will be shown on the website will influence customer perception on the quality of the products on The Body of Australia Shop.

Since our online customer are not physically present at the shop, the neat and attractive display and descriptions of products on the SOSS website will give our online shoppers cues that will help them understand the nature of products they are ordering (Babin, Darden, & Griffin 1994).

Conclusion

From the examination of our findings, we can wrap up that the extent, to which consumers associate to Secure Online Shopping System (SOSS), is dependent on the degree of perceived safety of the system and ease of use.

Consequently if a high-level of perceived safety and ease of use is achieved, consumers tend to refer more notably to the system. On the other hand, the use of online shopping seems to be dreaded by online consumers when the degree of perceived safety is not achieved or relatively low.

Furthermore, the more safe and convenient the online consumers perceive an online shopping system in their mind, the more likely it is for them to use it when making online purchases.

Finally, this research has been conducted in a very meticulous setting with predetermined respondents’ characteristics. Therefore, we are aware of the possibility that the results could have turned out differently if respondents were picked randomly from across the social divide.

Appendix

Interview Questions

What is your opinion on online sales and purchasing of goods and services?
How often do you participate as an active purchaser of products traded online?
What do you consider key before engaging in online purchase?
What are your expectations whenever you trade online?
Do you trust online sites and advertisements as presented in these sites?
How did you get information on sites you purchase in?
Do you consider these sites help full?
What is your projection into the future use of purchasing sites?
What would you recommend in order to make these sites more secure and reliable?

Participant’s information

Pseudonym	Age	Frequency of online shopping	Education level in Australia	Relationship to the products
Fatima (Female)	21	daily	collage	Active user
Reinhardt (male)	23	weekly	collage	Active user
Sarah (Female)	31	often	University	Active user

References List

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