Nowadays, the efficient delivery of goods is regarded by customers as a significant value. One of the recent studies on “UK consumer attitudes towards order fulfillment in online shopping” with “a sample of 2000 UK consumers” revealed that “87 percent of respondents would switch to another supplier if they experienced delivery problems twice or more” (Galpin para. 2). It means that delivery represents a vital component of the overall purchasing or service reception experience and contributes to the development of customer loyalty (Bobalca 241). The provision of a custom delivery service can help to resolve this problem for consumers and, therefore, the iRunning project may be regarded as promising.
Time efficiency is the primary advantage associated with online delivery service (Roberts and Zahay 34). However, the cons of online delivery may include expensive delivery charges, risks of receiving a wrong order, delays, and so on (“Advantages and Disadvantages of Online Food Delivery” para. 3). iRunning will aim to minimize the mentioned risks and provide service at cheaper rates.
Effective pricing is one of the ways to approach targeted customer groups more efficiently and draw their attention to the service. Based on this, the project will employ the customer value-based pricing strategy. It can be defined as “the method of setting a price by which a company calculates and tries to earn the differentiated worth of its product for a particular customer segment when compared to its competitor” (Dholakia para. 1). Generally speaking, “effective, customer value-based pricing involves understanding how much value consumers place on the benefits they receive from the product. Then, we have to set a price that captures this value.” (“Customer Value-Based Pricing” para. 1). It means that iRunning will render service at a very competitive price based on the analysis of other companies’ offers in the given area. Since iRunning implies a community-based voluntary and individually performed delivery without the involvement of intermediary agents such as professional couriers, etc., it is characterized by cost-efficiency for the owners, and the service’s price thus can be equal to its actual value.
iRunning is intended to be an online network. In general, social networks can be defined as “communities of people who share interests and activities or who are interested in exploring the interests and activities of others” or “a map of relationships between individuals” (Sharp 3-4). As Arca states, “Social Media Marketing is marketing that focuses on people, not products…The products can be presented by the company with as many qualitative features and promotional tools as possible, but what matters is the comments and appreciations left by the customers” (14). It means that as any online network, iRunning will be associated with a decreased level of control over marketing content. However, it will be possible to manage this risk by adding the following features:
“Administrative control Allows network owner to monitor and manage all content uploaded by members, and gives the ability to delete the material deemed offensive or otherwise out of sync with the overall theme of the network…
Content management. Allows the administrator to keep the network secure and safe – includes spam (or profanity) filters, COPPA-compliant features, and user moderation” (Sharp 10).
By adding the given features, it will be possible to reduce the risks of the website misuse and ensure positive customer experiences. Safety is one of the major attributes of service excellence. Thus, it is important to pay attention to content and users’ activity monitoring and control.
Service customization is another customer value provided by iRunning. It is observed that product and service customization is characterized by a high level of customer involvement and, customers/users’ participation in the process of product/service creation increase the brands’ attractiveness (Margalit para. 2).
“The ability to influence the shape of an object automatically generates emotional attachment. The final design of a product reflects the customer’s taste; the self-selection of features, color, shape, etc. all work to provide a glimpse of the customer’s inner world. The opportunity to take part in a process and influence the result promotes emotional attachment that leads to psychological ownership, the feeling that something is “mine” even without legal ownership” (Margalit para. 3).
The major advantage of customer/user engagement in the process of service/product creation is “the elimination of, or at least the reduction of, several risks and increases the odds of market success” (“Customer-Driven Product Development” para. 3). The involvement of customers into the process of product development and customer-driven marketing strategies designed according to customer interests aim to improve the quality of service and increase product awareness (Kotler et al. 331). Moreover, constant communication with potential consumers may contribute to customer satisfaction through the integration of additional values into a brand’s or product’s image (Kotler et al. 343).
Another important customer value-added to iRunning service will be the orientation towards the environment-friendly operation. In marketing, consideration of health and environment concerns “adds to the good perception of the product in terms of credibility, quality, and purchase intent” and, in this way, helps to increase profits, customer loyalty, and competitiveness (Binninger 13). The integration of “green” principles in business operations may have long-term positive impacts on organizational performance, consumer health and perceptions, and environment. Therefore, it may be highly beneficial to balance financial and environmental concerns in a way that will allow supporting business sustainability and meet consumers’ needs and interests.
Works Cited
“Advantages and Disadvantages of Online Food Delivery.” Food Reviews, Bar Reviews, Restaurant Reviews, 2014, Web.
Arca, Celine. “Social Media Marketing Benefits for Businesses: Why and How Should Every Business Create and Develop Its Social Media Sites?.” Forskningsportal, 2012, Web.
Binninger, Anne-Sophie. “Perception of naturalness of food packaging and its role in consumer product evaluation”. Journal of Food Products Marketing, 2015, pp. 1-17. Taylor & Francis Online, Web.
Bobalca, Claudia. “The Loyal Customers’ Perception Regarding the Online Buying Process.” CES Working Papers, vo. 7, no. 2, 2015, pp. 241-255. Research Library, Web.
“Customer Value-Based Pricing – Pricing Based on Customer Value.” Marketing-Insider, Web.
“Customer-Driven Product Development: A Report from the Trenches.” Selleo. 2014, Web.
Dholakia, Utpal. “A Quick Guide to Value-Based Pricing.” Harvard Business Review. 2016, Web.
Galpin, Paul. “The Importance of High Delivery Standards.” Small Business. 2013, Web.
Kotler, Philip, Gary Armstrong, Valerie Trifts, and Peggy Cunningham. Principles Of Marketing, 9th Canadian Edition. Pearson, 2013.
Margalit, Liraz. “The Psychology of Online Customization.” Techcrunch. 2014, Web.
Roberts, Mary Lou, and Debra L. Zahay. Internet Marketing: Integrating Online and Offline Strategies. Cengage Learning, 2013.
Sharp, Julien. Design and Launch an Online Social Networking Business in a Week. Entrepreneur Media, 2009.
Shopping is an integral part of a human life. Not long time ago, people could have an opportunity to visit shops or other places and buy something. Nowadays, online shopping becomes a successful alternative to ordinary shopping. People should know that the importance to search the information about shopping malls, shops, restaurants, and entertainment zones has been replaced by the possibility to focus on the ways of payment and shipment, customer information, the idea of customer support, product features, and security details.
In this research proposal, I will discuss online shopping features and the details customers have to be aware of in order not to become deceived, screwed, or confused with the opportunities offered. Background information on online shopping will be presented, and the way on how to succeed in online shopping will be discussed.
This project is based on the combination of primary and secondary research including online shopping facts DMC students are already aware of and the information they want to know more on this topic. A mixed-method research framework in the form of interviews and questionnaires will be used to gather the opinions, and the review of the literature helps to clarify the standards of online shopping.
Background Report
Research Questions
In this project, the following research questions will be discussed:
What do DMC students know about online shopping?
Do DMC students prefer online shopping over other types of shopping?
What does it mean to plan shopping?
What are the details of online shopping DMC students should be aware of?
What kind of information should be shared by online shoppers?
Definitions of Terms
Online shopping – is the act of purchasing services or products via the Internet (BusinessDictionary, n.d.).
E-commerce – is a general term to cover an existing variety of online business activities, buying, selling, conducting transactions, etc. with the help of electronic communications and digital information processing technologies (Mohapatra, 2012).
Customer – is a person who buys services or goods (English Oxford living dictionaries n.d.).
Product – is an item or a service that is offered for sale and gains a physical, virtual, or cyber form (The economic times, n.d.).
Literature Review
Shopping Essence
It is hard to imagine this life even without an idea of buying food, things, clothes, services, and other important issues. People analyze their current situations and choose the methods that are appropriate for them at the moment. Sometimes, it is beneficial to make a planned purchase by visiting actual shops, restaurants, shopping malls, entertainment zones, etc. Customers have to investigate the available places and make a decision.
However, the investigations prove that shopping turns out to be something of the national past time in the UAE (“Shopping”, n.d.). Nowadays, tourists are more interested in the idea of “real” shopping in comparison to the citizens of the Middle East. The peculiar feature of plan shopping is the necessity to choose a plan that should be visited. A good plan is a way to get protected from shopping addiction (Nyakundi & Davidson, 2015).
To take this step, a person has to understand what products are required. Potential customers have to decide if they are in need of a shopping mall, ordinary shops, restaurants, or entertainment zones. Each place has its own characteristics and contains a number of decisions to be made. Online shopping is the alternative that attracts the attention of many people (Suen, 2013). This kind of shopping occurs in the online environment where customers have to interact with retailers by means of websites and forums that introduce the basis of the information system (Luo, Ba, & Zang, 2012).
How People Make Purchases
The processes of making purchases online and in person differ considerably. Braff (2014) investigates the question of whether it is necessary or even beneficial to buy online or in person and cannot give one definite question. There are as many opinions as many people worldwide. The point is that nowadays shopping comes down to more than just making a purchase (Braff, 2014). Several years ago, it was enough to choose a shop in regards to personal demands (Mohapatra, 2012) and investigate appropriate locations, parking details, the presence/absence of public transport.
Nowadays, people want to know more about their options, save their time, and choose an item among the existing variety of options (Mohapatra, 2012). People, especially young customers, want to be in the know for their favorite products and the system of discounts they could choose from (Suen, 2013). They find it enough to create an account online with the required email, phone number, and name, choose a payment method, clarify the details of the shipment, investigate the product in regards to its quality, price, and quantity, and analyze personal security (Mohapatra, 2012). The process of making purchases online becomes as easy as it has never been before.
Threats and Benefits of Online Shopping
However, the existing variety of options and an easy process of shopping contain a number of positive and negative aspects. On the one hand, it is beneficial to buy a product online when a customer knows the reputation of a retailer and can read the information about the product (TV, Smartphone, iPad, etc.) online (Braff, 2014). On the other hand, online shopping should be secure, and customers have to be confident that they download safe information, and their accounts cannot be tracked (Suen, 2013).
Customer services have to be organized in a certain way so that customers should be satisfied with the offers and the conditions under which they could buy a product or a service (Luo, Ba, & Zhang, 2012). Customers are in need of support and explanations in case they decide to make a purchase online for the first time. It is hard for people to stop checking the quality of products in person and start trusting outside sources (Nyakundi & Davidson, 2015). Therefore, it is necessary to investigate the peculiar features of online shopping and prove that this kind of commerce is safe and appropriate for modern people.
Proposal for Research
Importance of Research
I think that the chosen topic is important for the DMC students and the UAE citizens because the current situation in the Gulf region includes the importance of online shopping and its development regarding the technological process, the development of international relations, and the intentions of people to save their time and find as many opportunities as possible.
In terms of this research project, it is necessary to find out what DMC students know about online shopping, how they make a decision about their next purchase, and what their personal experience with online shopping is. Still, it is not enough to describe the opinions of people but also to make the conclusions about the main steps of online shopping and the information that should be covered when a person want to buy something online.
Data Collection
This project should consist of two types of research. First, primary research should help to gather the opinions of students. Primary information proves the importance of the chosen topic and the necessity to develop a powerful methodological framework. In this research project, a mixed type of methodological framework that is based on qualitative and quantitative methods will be used.
A questionnaire is the main quantitative method with the help of which it is possible to gather the facts on the chosen topic and prove that the theme is worth of the investigation. Questionnaires consist of several questions that should be answered with the help of a Likert scale (i.e. Strongly Agree, Neutral, or Strongly Disagree). Students should share their opinions, and a researcher could count the answers in order to decide whether students could be a credible source of information. As a rule, these questionnaires could be sent to students via emails with a clear description of why their participation in the project is important for academic research. As soon as a certain number of answers are gathered, and the numeric facts are underlined, it is expected to deal with the quality.
An interview is the main qualitative method that presupposes a direct communication with people and identifying their opinions on the topic under discussion. It is important to clarify the ethical aspects of communication and inform the participants about the possibility to use their answers for academic purposes. This method helps to understand what people think about online shopping and if customers are satisfied with the conditions under which they could make purchases online. Besides, interviews could show if customers know about the details of online shopping and the type of information they should share with online retailers.
The success of this method is based on the necessity to develop several open-ended and close-ended questions before the actual interviewing process. Still, a researcher should also be ready to support the discussion in case the answers of the participants should be clarified. The questionnaires and interviews with 20 college students from different age groups can help to learn more what the UAE citizens think about online purchases and what expectations they have in regards to this kind of activity.
Secondary research is the type of work that has to be developed on the basis of library search and web surfing. The statistical data from credible sources could be introduced to prove that a number of people are already involved in online shopping, and the number of online purchases continues increasing day by day. Secondary research is a chance to investigate what other researchers think on the chosen topic.
Main Research Questions
In this project, there is one main research question that should be answered:
What should students and the citizens of the UAE know about online shopping and its peculiarities to succeed in this kind of activity?
This main question should be divided into three sub-questions:
How does the development of shopping activities occur?
What should people know about plan shopping?
What are the details of online shopping and the information customers have to introduce when they want to buy a product?
References
Braff, D. (2014). Buying online versus in the store. Chicago Tribune. Web.
Customer. (n.d.). In English Oxford living dictionaries. Web.
Luo, J., Ba, S., & Zhang, H. (2012). The effectiveness of online shopping characteristics and well-designed websites on satisfaction. MIS Quarterly, 36(4), 1-9.
Mohapatra, S. (2012). E-commerce strategy: text and cases. New York, NY: Springer Science & Business Media.
Nyakundi, C.T. & Davidson, J. (2015). Simple steps to help you overcome shopping addiction. Mendon, Utah: Mendon Cottage Books.
Online shopping. (n.d.). In Business Dictionary. Web.
Product. (n.d.). In The economic times. Web.
Shopping. (n.d.). UAEinteract. Web.
Suen, A. (2013). Downloading and online shopping safety and privacy. New York, NY: The Rosen Publishing Group.
It has been reported that the sphere of e-commerce has experienced an unprecedented rise over the last decade. From a couple of percent in 2005-2006 and up to twenty percent for specific products, the Internet has established itself as the key channel for Business-to-Customer commerce operations. Therefore, the global retail industry today is not what it was ten years ago because of the Internet and the expansion of online shopping. While the significance and the convenience of e-commerce are indisputable, it is important to study its impact on the traditional retail industry around the world to identify the challenges, which it has to withstand.
Benefits of Online Shopping
Before identifying the challenges, it is worth to briefly mention the benefits online shopping has brought millions of customers and companies around the world. First, online shopping allowed customers to purchase goods without the need to leave the comfort of their homes, offering a great advantage to those with a busy lifestyle. Second, customers can connect with the brands and leave feedback about the purchased products and services. Third, the cost retailers pay for storing and referencing their products online is significantly smaller than the costs of physical stores. Fourth, the benefits of delivery services such as Amazon Prime have made the lives of millions much easier.
Significance and Challenges of E-Commerce
The impact of online shopping can be considered threefold. At the same time with bringing customers a range of new benefits and creating some barriers for traditional retailers, online shopping completely transformed the sphere of marketing. According to the article by Doherty and Ellis-Chadwick (2010), new opportunities associated with the Internet facilitated closer interactions with customers and enabled companies to be much more innovative in their approach towards advertisement. Effective brand-to-customer advertising required companies to gather more customer-oriented data to tailor to their needs and requirements (Arora et al., 2008).
Apart from the significant impact on marketing, online retail forced many brands, especially clothing companies such as Zara, H&M, and many others, to expand beyond physical stores and offer customers online shopping options. Along with the convenience and the reduction of costs, retailers can now update their stock more quickly and offer the latest styles of clothing in ways that were not available ten years ago (Ellis, 2014). Another significant impact of online shopping was the facilitation of ‘relatively perfect’ competition. While it is naïve to assume that the sphere of e-commerce contributed to the emergence of perfect competition among brands on the Internet, customers received an opportunity to choose substitutes for many products. With a quick search online, users can look for cheaper alternatives for expensive items and base their purchasing decisions on the feedback left by other customers (Vannier, 2013).
According to the extensive research on the impact of online shopping on traditional retailing (Weltevrenden, 2007), the growth of e-commerce has been significant and sustained. While the ‘high street’ retailers are trying to keep up with such tremendous growth, they have yet been unsuccessful in reaching the level of online Business-to-Customer companies. The change in the channels of retail has shifted across the majority of spheres. Music, printing and publishing, travel agencies, entertainment, even technologies are currently dominating the market in the area of online shopping. Customers prefer purchasing computers and tablets directly from the brands’ websites.
On the other hand, many brands that dominated the market of physical retail are reluctant to enter the e-commerce environment because of the fear of security breaches or ‘cannibalization’ (domination of the brand’s online retail channel over the physical stores). Furthermore, the emergence of online shopping has facilitated the creation of previously unknown methods of retail. Virtual merchants such as eBay and Amazon allowed almost anyone to sell used or new items through the Internet. By cooperating with small retailers and offering them a platform to sell their products, Amazon became number one in providing customers around the world with an extensive range of products varying from children’s toys to dog food.
Concluding Remarks
The same way globalization eliminated the range of barriers in the worldwide economy, the sphere of e-commerce removed the limits associated with traditional shopping and allowed customers to shop anywhere and at any time. To target specific groups of clients, brands are employing new methods of data gathering that offer more personalized information about the needs and requirements of potential customers. The sphere of online marketing and retail has also broadened the reach of already successful retailers that used to sell goods in physical stores.
Research has shown that the emergence of online shopping changed the world of retail, and it is unlikely that traditional retail channels will ever dominate again. Despite the fact that it was limited to already existing publications on the topic, the common theme across all literature was that online shopping facilitated the creation of the global phenomenon that eliminated the boundaries associated with traditional retail. In my opinion, online shopping improved retail and accelerated its rapid growth and development, and it will continue to expand in the future to cater to the demands of the globalized society.
References
Arora, N., Dreze, X., Ghose, A., Hess, J., Iyengar, R., Jing,…Zhang, Z. (2008). Putting one-to-one marketing to work: Personalization, customization, and choice. Marketing Letters, 19, 305-21.
Doherty, N., & Ellis-Chadwick, F. (2010). Internet retailing: the past, the present, and the future. International Journal of Retail & Distribution Management, 38(11), 943-965.
Vannier, P. (2013). How the Internet is affecting retail – permanently. Web.
Weltevrenden, J. (2007). Substitution or complementarity? How the Internet changes city center shopping. Journal of Retailing & Consumer Services, 14(3), 197-207.
The introduction: the history of Jordan’s Furniture
While discussing the advantages of shopping online at Jordan’s Furniture website, I want to highlight the history of a furniture retailer. First of all, I would like to point out that Jordan’s Furniture is a furniture retailer in the Commonwealth of Massachusetts, the U.S.A. The company appeared at the beginning of the 20th century. Its founder is Samuel Tatelman. In the early thirties, Tetelman’s son joined the business. In the early seventies, Tatelman’s grandchildren Barry and Eliot continued with their company. In the eighties, they started to build stores in various towns of Massachusetts. In the late nineties, the firm was sold to famous American multinational conglomerate holding company Berkshire Hathaway Inc.
The company manufactures Furniture for a wide range of purposes. Thus, for a living room, Jordan’s Furniture producers sofas, sleepers, loveseats, chairs and ottomans, chaises, refiners, sectionals, and occasional tables. Bedroom furniture includes beds, dressers, mirrors, nightstands, armoires, chests, metal beds, daybeds, etc. Dining furniture consists of dining sets, dining tables, seating, China cabinets, servers and sideboards, bars, and wine storage.
Kid furniture offers kids’ beds, kids’ dressers, kids’ mirrors, kinds’ nightstands, kids’ armoires, kids’ chests, bunk beds, kids’ daybeds, kids’ vanities, kids’ desks and desk chairs, kids’ media storage, and kids’ accents. The company also specializes in nursery furniture (cribs, changing tables, rocking chairs/gliders), entertainment issues (entertainment centers, T.V. consoles, entertainment armoires), and home office items (office chairs, bookcases, filing/storage cabinets, office desks). A furniture retailer manufactures runners, room size rugs, curios, clocks, fire mantels, accent benches, vanity, and jewelry chests (Jordans. com., 2011, p. 1).
The thesis statement
Jordan’s Furniture is one of the biggest furniture retailers in eastern Massachusetts, the U.S.A. The company offers a wide range of furniture items for acceptable prices. The customers can choose any item they wish. Moreover, they have an opportunity to do their shopping online.
The body: management strategies of Jordan’s Furniture
In my opinion, the company’s success depends upon the policy Jordan’s Furniture is based on. For instance, the peculiar feature of Jordan’s Furniture is that the company differentiates itself. The site Berkshirehathaway.com (1999) provides us with the following information:
One of the unique aspects of Jordan’s Furniture is the incorporation of
“shoppertainment’ within the stores. The Avon location houses a 48-seat
flight-simulator movie theatre called the Motion Odyssey Movie ride, or
M.O.M., shown on a 4-story high movie screen. In the Natick store, customers
walk onto “Bourbon Street,” complete with a Riverboat, a “Streetcar Named
Dessert”, beads, full-scale French building facades, and a 9-minute multi-
media Mardi Gras f/x show. (p. 1)
So, one may point out that the company’s primary aim is to entertain the customers, but not to earn more. For this reason, it is evident that the company tends to improve its management strategies in order to grow by responding to environmental changes. The key concept the company is based on combines strategic trends and operational capability. So, with a strong strategy, Jordan’s Furniture is oriented towards a high-level operation result.
The advantages of shopping online at Jordan’s Furniture website are also to be taken into account. Thus, factor types related to online shopping are demographics, Internet experience, normative beliefs, shopping orientation, shopping motivation, online experience, and psychological perception. On the other hand, it is proven that the frequency of purchases is negatively related to online transaction abortion. Moreover, online shopping increases customers’ comfort level.
The conclusion: the advantages of shopping online at Jordan’s Furniture website
So, when choosing the items the company offers, the customers have enough time to think about what they want to buy. They have an opportunity to choose numerous furniture items for an acceptable price or change their mind and make some other decisions. On the other hand, the customers can ask for the advice of their friends and send them pictures of Furniture through the Internet. Research by Zhou, Dai & Zhang (2007) supports the position that “Consumers’ broad experience with the Internet does not necessarily influence their online shopping behavior. However, a positive relationship between Internet usage and online shopping intention was detected in some studies” (p. 47).
The article under review is “Consumer Behavior in Online Shopping: A Study of Aizawl” by Amit Kumar Singh and Malsawmi Sailo. It was written in 2013 to describe the trends of Internet commerce that characterize the Aizawl region. While the article effectively utilizes the authors’ credibility, the relevance of the research, structure, organization, and illustrative material, other aspects like misapplied methodology and lack of convincing evidence appear to be unsuccessful and need improvement.
Main body
The article explores the behaviors and attitudes towards online shopping among citizens of Aizwal, India. The journal’s purpose is to discover the trend in e-shopping from customers’ perspective to apply the information in Internet retailing. The intended audience of the article is the companies that practice e-commerce. The authors use the survey research method and primary data collected via questionnaire from the sample of 30 respondents of various ages, professional backgrounds, and incomes to examine their preferences in online shopping. The main findings suggest that young people with stable income buy products online more frequently due to convenience and price-efficiency.
The article shows the effective use of credibility of the authors, appropriate structure and organization, regional relevance of the cited literature, and functional illustrative material. The authors appear believable because the article mentions their professional background, as well as contact information. Both authors’ scientific and business work-related expertise fits the topic of the research. The structure and organization of the report follow the generally accepted format, which makes the information understandable. Additionally, the sources used in the literature review apply to the explored region. As it concerns the use of graphs and illustrations, they are successfully employed to aid a reader in understanding the findings in a bigger context.
However, the problematic aspects of the research are informal language, inadequate methodology, and use of evidence, as well as lack of credibility in cited studies. Firstly, the language and the tone are overtly informal, with a prevalence of typos. For instance, the authors misspell “PayPal” as “papal” and use personal pronouns like “us” and “we” throughout the text (Singh and Sailo 3). Most of the studies included in the literature review section are not reliable since they are too old to identify the current situation of online shopping correctly. Furthermore, their description is not concrete enough to relate to the given context. The literature review lacks specificity; for instance, the authors indicate “four different customer groups” without actually giving any particular description (Singh and Sailo 3). As it concerns the “Analysis and Interpretation” section, the data is inspected in a linear, oversimplified manner that lacks insight into Internet purchasing behavior.
The article can be improved by giving more credible information and practicing a different way of analyzing the data. Similar research on the topic of Internet shopping behavior done by Divyendu et al. has used relevant studies that apply not only to the region but also the period. All of the studies in the literature review section have been published within five years, making them appropriate evidence for the given context (Divyendu et al. 1106). If the report had included writing that is similar to the example above, fitting both geographically and time-wise, the evidence would have appeared more credible. Additionally, interpreting the findings differently would support the proof and make it more well-rounded and extensive. Similar to the article done by Ahmad, the qualitative data could be analyzed from more than two perspectives to answer the research question in more detail (18). For example, the frequency of online purchase graph could also show how many regular online customers fit the 18-to-25 age category. This cross-sectional research approach would help to discover more Internet purchasing trends.
Conclusion
In conclusion, the article “Consumer Behavior in Online Shopping: A Study of Aizawl” by Singh and Sailo shows the effective use of some aspects of the research. However, significant elements need improvement to fulfill the purpose of the study and communicate appropriate ideas. By using more suitable information and showing an extensive correlation of the qualitative data, the evidence will become more credible and trustworthy.
References
Ahmad, Mushtaq. “Online Shopping Behavior Among University Students: Case Study Of Must University.” Advances in Social Sciences Research Journal, vol. 5, no. 4, 2018, pp. 1-25.
Divyendu, Siddharth Raj et al. “Online or Offline Shopping: Factors That Determine Customer Behavior.” International Research Journal of Engineering and Technology, vol. 6, no. 11, 2019, pp. 1105–1110.
Singh, Amit Kumar, and Malsawmi Sailo. “Consumer Behavior in Online Shopping: A Study of Aizawl.” International Journal of Business & Management Research, vol. 1, no. 3, 2013, pp. 1-5.
E-commerce has been accessible ever since the 1990s. However, it has only received major recognition from both customers and entrepreneurs in the past few years. For both consumers and businesses, e-commerce proves to be more convenient in terms of time and cost. Due to its healthy growth rate, many local and international businesses are adapting to the modern method of conducting business, which employs the tenets of e-commerce. The aim of this paper is to conduct an in-depth analysis of the perspective and perception of Saudi Arabian women on online shopping. The study will make use of both qualitative and quantitative research methods to gain deeper insight and a greater understanding of the thoughts and reactions of Saudi women as regards online shopping. Through the methods of focus groups, in-depth interviews, and surveys, the study aims at examining the level of awareness, level of trust in terms of online payment, and most importantly the level of interest among Saudi women.
Literature Review
A review of the existing body of knowledge reveals that e-commerce is influencing the lives of Saudi residents positively. A study conducted by Al-Maghrebi proved that women are interested in the new technologies related to online shopping because of their convenience and the satisfaction that they bring (30). Alotaibi supported the views of other scholars by claiming that the introduction of the internet is attributed to the growth of online shopping in the country (45). Online shopping gives women a new experience in process of product ordering, viewing, and delivering. He suggested that electronic commerce (e-Commerce) has an emerging latent in Saudi Arabia owing to extensive utilization of the internet and the development of information knowledge and communication. The focus of the canvasser was to review the excellence of e-commerce websites in Saudi Arabia with the help of an anticipated costing tool. To realize this aspiration, the utilization of a number of e-commerce websites was critical. Based on this, these websites were chosen for assessment and were categorized into three groups, including domestic, local, and global class. Owing to the existence of different sites, the researcher examined the growth and expansion of the e-commerce segment in the nation. On their part, Sait, Al-Tawil, and Ali Hussain evaluated the role of the internet in streamlining the e-commerce business (58).
Among one of the most extensive effects of the internet, particularly from the viewpoint of industry and market representations, the scholars observed that e-commerce is the overriding concept. In the present-day society, this previous ‘experimental’ trade model has turned out to be a typical podium for reorganizing business courses and augmenting merchandise outreach. They posit that this is authenticated by the noteworthy accent by a number of countries in mounting vigorous e-commerce architectures customized to ensemble economical-social structures. A remarkable case study in this point of view is the Kingdom of Saudi Arabia, particularly given its focus on restricted, local, and spiritual civilization. Currently, with an incredible developmental rate in internet connectivity, the Kingdom is aggressively shifting from traditional systems towards extensive espousal of e-commerce structures. In 2001, a two-year plan was instigated to conduct a critical review on the present influence of the internet on societal, educational, and business structures in the Kingdom. On the same note, Alghamdi focused on exploring the influence of e-commerce on retail trade in the country (90). He was of the view that even though the nation has the leading and the best ever-emerging information and communication technologies segment in the Middle East, the increase in e-commerce actions has not progressed at a proportionate speed.
Overall, Saudi merchants have not maintained pace with the international development of online transactions. The writer conducted research to classify and investigate some of the major problems that influence Saudi merchants in making up their minds on whether to approve online channels. Finally, Al-Hudhaif and Alkubeyyer talked about some of the factors that force Saudi women to adopt new shopping technologies (124). The scholars noted further that some economic segments in Saudi Arabia are sluggish in espousing e-commerce technologies for administering their business connections. This is because of the domestic set of issues that are correlated to organizations or exterior set of problems, which are associated with the infrastructure and legislative support. They posit further that a number of studies related to this topic talk about either interior factors or exterior issues, but not both. A number of articles exploring issues related to e-commerce espousal factors in emerging financial systems center on the ecological, infrastructural, and legislative areas only and ignore the managerial factors whilst the focus of the topic studied and investigated on industrialized financial systems are managerial meaning they explore SMEs and large ventures. In other words, studies conducted in the third world do not focus on strengthening e-commerce, but instead, such researches aim at portraying the third world as the production countries while developed countries are the manufacturing states. Therefore, the study of e-commerce and its application in business is not well developed as compared to the utilization of e-commerce services in the west. With e-commerce, Saudi Arabia is in a position to achieve excellent economic ambitions, but the problem lies with the economic structures since they do not support the new system of shopping.
Methodology
There would be two key methods used to gather information in the study. The first one would be through a questionnaire, which will be physically delivered to participants. The questionnaire will seek to capture various attitudes of women regarding their opinions on online shopping. The second source of information used for the research will be literature on various aspects of e-commerce in general and the operational activities that take place in e-marketing. Open-ended questions will be used because they give respondents more time to figure out their opinions, which would make them volunteer more information related to feelings, outlooks, and comprehension of the subject. This would allow the researcher to understand the position of respondents as regards feelings. Open-ended questions minimize some errors that could have been created in the course of research. Respondents rarely forget answers if given an opportunity to respond freely. Furthermore, respondents cannot ignore some questions because they must go through all of them. Open-ended questions generate data that can be used in data analysis by other researchers. In other words, they allow secondary data analysis. On the other hand, closed-ended questions are analyzed easily. That is why they were used in this study. Each response can be coded for statistical interpretation. Nonetheless, closed-ended questions are compatible with the computer analysis package (Delving 24).
Qualitative methods explain why a given pattern of events has taken place. On the other hand, quantitative methods explain the what and when of phenomena. Ethnographic research and phenomenology as approaches to qualitative research will be appropriate in this study.
Conclusion
Based on the literature review and primary data obtained through questionnaires, it is factual that the future of retail trade is e-commerce whereby traders are able to engage in business without necessarily meeting the clients and customers. The review of data reveals that small-scale traders have the chance of expanding their business if they adopt the tenets of e-commerce in the country.
Works Cited
Alghamdi, Rayed. “Factors Influencing E-Commerce Adoption by Retailers in Saudi Arabia: A Quantitative Analysis.” International journal of electronic commerce studies, 3.1 (2012): 83-100.Print.
Al-Hudhaif, Suleiman, and Alkubeyyer, Abdullah. “E-Commerce Adoption Factors in Saudi Arabia.” International Journal of Business & Management, 6.9 (2011): 122-133.Print.
Al-maghrabi, Dennis. “Driving online shopping: Spending and behavioral differences among women in Saudi Arabia.” International Journal of Business Science & Applied Management, 5. (2010): 30-47. Print.
Alotaibi, Mutlaq. “E-Commerce Adoption in Saudi Arabia: an Assessment of International, Regional and Domestic Web Presence.” Internal journal of Information Technology and Computer Science, 2.1 (2013): 42-56. Print.
Delving, Arnold. Research methods: planning, conducting and presenting research. Belmont: Wadsworth, 2006. Print.
Sait, Sadiq, Al-Tawil, Khalid, and Hussain, Syed. “E-Commerce in Saudi Arabia: adoption and perspectives.” Australasian Journal of Information Systems, 12.1 (2004): 54-74. Print.
Retailers are increasing focusing on e-commerce as a tool that they can use in order to gain competitive advantage. However, it is notable that in order for e-commerce to be a truly successful medium, the retailers have to identify the consumer behaviours portrayed towards the same in order to encourage spending.
Specifically, the retailers have to learn how consumers behave towards online product display, online payment methods, return services, warranties provided by the online retailers, different methods of product delivery and credit facilities offered by the retailers among others.
The typical online purchasing decisions are made in a process comprising of the following stages: 1) need awareness; 2) searching for relevant product information; 3) evaluating available alternatives; 4) implementing the purchase decision; and 5) Post-purchase decision-making.
Hadjiphanis & Christou notes that understanding consumer behaviour in e-commerce involves gaining insight on how the people search for product information in an online environment (1). Once understood, the retailer can then customize their websites to meet the specific information needs that consumers need in order to make the purchase decision.
Since the online environment gives consumer a wider choice of products and product platforms from where to make their purchases, this study seeks to establish the exact consumer behaviour portrayed in an e-commerce environment and the specific factors that influence such behaviour. The study also seeks to highlight aspects of e-commerce consumer behaviours that the researcher considers important towards helping retailers meet the diverse consumer behaviours presented in an online environment.
This study acknowledges that consumer behaviour; just like in the traditional marketplace is influenced by personal, lifestyle and psychological factors. As such, the paper will seek how each of the factors affects consumer behaviour and how online retailers can meet the consumers needs highlighted in such behaviours.
Lowe defines e-commerce as the act of purchasing an online product (363). This involves ordering the product and making the payment for the same.
Literature Review
In a research of e-commerce in Canada, Lowe (363-374) notes that though this new way of purchasing products and services gives consumers a wider choice and is more convenient, it is yet to be embraced by a large percentage of consumers as was predicted when the concept began.
Most notably, Canada’s e-commerce by individuals in 2001 was estimated to be worth $2 billion only and represented 0.4 percentage of the total household spending (Lowe 363). Some of the factors affecting e-commerce by individuals include their access to internet, their willingness to use the internet to purchase products and services, and the products available for purchase on an online setup (Lowe 364).
Hadjiphanis & Christou argue that in order to understand consumer behaviour in e-commerce, one has to look at the consumer as an information processor; they processes information presented to them by marketers, become aware of the different products presented to them, and finally make a purchase decision (2).
Typically, the e-consumers will visit a retail store with the intention of either purchasing an item or simply enjoying the shopping experience. Just like in behaviour portrayed by consumers in traditional purchases, Hadjiphanis & Christou states that e-commerce consumers make their decisions based on operational, temporal and spatial considerations (3).
Operational dimension: This search strategy is observed in brand conscious consumers. Such use the search engines to purchase brand items that they already know and possibly use. They value reliability, consistency, quality, affection, trust reputation and loyalty.
Brand conscious consumers also have specific expectations when thinking, purchasing or using a specific product. The operational dimension is most noted in early adopters (Hadjiphanis & Christou 2). When such is the case, the shoppers go directly to a specific site for purchase instead of using search engines.
Spatial dimension: This search strategy is used by consumers who mix their consumption history with new information obtained from internet sources. This means that the consumer’s behaviours are influenced by a mixture of internal habits and external information.
In an online environment, consumers are able to use the search tools to support information such on both internal preferences and new information on product and services. Shoppers in this category search for items on sites that rate products. They also use compare items on different shopping sites.
Temporal dimension: Hadjiphanis & Christou defines the temporal dimension as the time that a consumer takes between his/her first thought about purchasing a product or service and the actual purchase.
The online platform is used by shoppers who use the internet as both a transactional medium as well as a search tool. A different group of shoppers engage in recreational shopping where they seek as much information as possible about a product before making the actual purchase.
Hadjiphanis & Christou notes that the consumer’s behaviour towards a product is affected by any prior knowledge they may possess towards the product, level of interest that they have towards the product, and the ease or complexity of information access regarding the product (3). Shoppers in this category use search engines, but can also navigate directly to a shopping site.
Consumer value is also identified by Hadjiphanis & Christou as a major influence to consumer behaviour in e-commerce (4). Just as is the case in consumer behaviour towards products and services sold in the traditional retail outlets, factors such as perceived benefits and the cost of a product affect consumer behaviour in e-commerce.
Approach
This study will use a literature review approach whereby, credible published work will be analysed for purposes of giving the researcher a clear perspective of the various factors that affect consumer behaviour in e-commerce. This approach was chosen because consumer behaviour especially in the wake of increased online shopping has been discussed widely by researchers.
As such, this study opted to avoid doubling the efforts of other researchers who have carried quantitative surveys in different markets. Instead, this study seeks to use findings published by different scholars in order to establish the real factors that influence consumer behaviour in e-commerce.
Through the review of literature, this study will also seek to establish if different consumer behaviour is portrayed by people in different groups in the society. Such include the wealth versus the middle income earners, the middle-aged as compared to the seniors, and the illiterate versus the more educated. The study will also seek to establish whether the proximity of online shoppers to physical retail shops affect their attitude towards e-commerce.
This study will also seek to establish how psychological, social and cultural factors among other demographic variables affect consumer behaviour. The study also establishes that intervening variables such as brands, marketing communication by marketers and firm capabilities affect consumer behaviour.
Conclusion
Consumer behaviour in e-commerce is a reflection of different factors that integrate to influence the consumer’s decision making. In addition to culture, social norms, psychological factors and demographic factors, other factors such as product characteristics, consumer skills, firm capabilities, marketing communications, brand, and website features all work together to influence consumer’s purchasing attitudes.
Notably, the consumer’s desire to purchase products that offer him/her quality service, or meets some of his/her other needs also affect purchasing behaviour. This then raises the need for detailed information regarding the product or service.
Usually, it is the prerogative of the online retailer to provide the information about the specific product to online shoppers. If the shopper feels that not enough information has been provided by the retailer, then he or she is most likely to navigate to other e-commerce sites where more satisfactory information is offered.
Other considerations that the retailers need to make in order to impact positively on consumer behaviour include ease of information access and transactions. The retailers also need to guarantee payment security and publish well articulated product purchase policies. Some of other factors that affect consumer behaviour in e-commerce include the status of the online shopper and their esteem towards specific products.
Ethics is also increasingly affecting consumer behaviour especially at a time when being environment friendly is being touted as the only way to save earth from self-destruction. The amount of fun associated with a product is however a key consideration to consumer behaviour, just as is the case with aesthetics. This means that the product may not be high quality, but its desirable package may make more consumers attracted to it.
Works Cited
Hadjiphanis, Lycourgos & Christou, Loizos. “The Role of E-Commerce on Consumer Behaviour”. The Journal of Business Administration 5.1 (2006): 1-7.
Lowe, Robin. “E-Commerce and Consumer Behaviour”. Statistics Canada (2003):363-374.
Online shopping is a form of e-commerce that involves the use of internet-connected computer hardware and credit cards. The user also needs to have a secure password that will enable him or her to access the services. Online shoppers are required to have different passwords for different shopping websites.
The process of online shopping involves opening the site where one prefers shopping, selecting the good or service needed by clicking on the specific item that the shopper wants, and then clicking on the ‘add to basket’ portal. After the item is moved, the buyer then clicks the stop button. Before entering money details, the customer ensures that the website uses ‘https’ and not ‘http’.
Such a browser assures the user that the site is secure in terms of handling money. The user then enters his or her credit or debit card particulars on the site. The site will display some verification characters for the user to enter. These ‘Captcha” details verify that the machine is being operated by a person and not a fraudulent software or robot.
After the buyer has completed entering the required details on the website as prompted, he or she then waits for the goods or services to be delivered to his or her authorised points of delivery. With this hint in mind concerning online shopping, the information given so far is enough to declare the shopping strategy as both risky and advantageous. The study dwells on proving this claim.
Benefits of Online Shopping
One of the benefits of online shopping is that it makes the customer have quick access to items that are identical regardless of where he or she does the shopping for them. For example, one is able to access items such as certain types of clothes, Compact Discs (CDs), books, cookeries, and even electronics. The only major requirements that the buyer should ensure that he or she has are the particulars of the item, which he or she verifies when it is delivered.
Bonsu and Darmody (2008, p. 356) argue that online shopping enables people to save energy that could have been used to travel to the shopping malls or to the markets for certain items. Online shopping is particularly advantageous, when the item that the buyer wants is similar in various shopping points. Such an item does not require the buyer to select a particular item from a variety of closely related or similar items.
For example, if it is a particular book by Shakespeare for instance, the book is not likely to be different in terms of price from one shop to another in a certain market region. With such items, the buyer can comfortably do online shopping. Constaninides (2004, p. 115) reveals that online shopping is also beneficial because it saves time.
Most of the online shopping service providers offer free delivery of services to their customers for goods of a specific value. The buyer is able to save a lot of time, which he or she can spend doing other beneficial activities. The time that shoppers spend in travelling, selecting, packing, and carrying the items is reduced. Therefore, online services such as shopping enhance efficiency.
According to Bonsu and Darmody (2008, p. 356), online shopping is also beneficial to customers in that they can obtain commodities that are not easily accessible due to distance and complexity of specificity. Some items that customers may need are very specific in nature.
Hence, identifying and selecting them physically in the shelves of the supermarket may be tedious. For example, electronic gadgets have specific codes that may easily confuse customers who have no previous experience in them. Choosing the specific item from a variety of others may attract confusion and hence a probable wrong choice of what the client requires.
In some instances, goods or services are not available in the proximity of the customer. In such cases, online customer can search through the websites and identify the item from far since delivery is guaranteed. For example, a customer may want to buy a certain model of a car that is not available in his or her country. Sometimes the buyer may not know where to get a certain item.
However, the buyer can access such goods and services through online advertising that the sellers offer. Online shopping has also enabled sellers to publicise their goods and services. A good example of shopping sites is the OLX where sellers post a picture of the items they want to sell, their description, and price. In addition, online shopping has little or no interference from competitors.
According to Bonsu and Darmody (2008, p. 355), unlike in supermarkets, shopping malls, shops, and hotels where customers line up to be served, online shopping is personal. Customers will use their computers, mobile phones or iPads to access the items that they want to buy. There are no cues and scramble for scarce items as it happens sometimes in shops and supermarkets.
Clients can order for items that they may not be confident to pick in the company of others in the supermarket. Such items include medicine for diseases that are stereotyped such as HIV/AIDs and other STDs. Thus, online shopping guarantees privacy and convenience.
Moreover, online shopping has been very beneficial for the physically challenged. Since these people find it difficult to travel, open fridges and shelves in supermarkets, and/or even to carry their shopping, they prefer using this service. Online shopping service saves them the strenuous activity hence enabling them to shop comfortably just like their normal counterparts.
Drawbacks of Online Shopping
Although e-commerce has been embraced in many economies of the world, there are several challenges that face its advancement. One of the drawbacks of online shopping is that it is not a very safe and secure transaction. The Secure Test consultancy firm that is based in the United Kingdom conducted a research on the safety of e-commerce.
Out of 100 websites that the consultancy investigated, the company concluded that there were many flaws in terms of handling of customers’ details by various websites. The methods of handling security details of customers were very insecure. Such flaws included mishandling of customer passwords and email addresses.
Mismanagement of the customer’s data is a great loop that online attackers use to hack registered e-commerce sites. Another drawback is lack of compliance with the required standards for the use of credit card by the issuing companies. Credit cards are required to be compliant with the PCI-DSS standards, which are the international standards that should guide the security of credit card services.
However, in a recent survey of credit compliance in the UK, only 14 percent of the 65 companies that were involved had complied with the PCI-DSS standards. Surprisingly, even large website companies such as Littlewoods were found to lag in terms of compliance. Companies such as the New Look are also not compliant. However, they do not keep details of customers’ credit cards and passwords.
In fact, customers should revert to PayPal, which is more secure. Constaninides (2004, p. 111) argue that websites are hacked using SQL injection where fraudsters use the registered websites to perform fraud on online customers. The other drawback is that online shopping websites cannot be trusted. Websites that host most of the shopping sites portals are never screened for authenticity.
Without scrutiny, such companies can be operated by people with ill motives hence injuring innocent customers. For example, Fasthosts Company has fallen to this trap. Last year, this company, which is based in the UK, was ordered to have its customers alter their FTP and all their passwords to their emails due to data breach. If this step were not taken as a quick remedy, many online shoppers would have lost their money.
Conclusion
With the advancement of computer technology, e-commerce has been adopted by many economies in the world today. Online commerce involves the use of internet-enabled computers to carry out shopping on company websites. The buyer pays for the services using credit cards or debit cards with special passwords. There are various advantages and disadvantages of using online shopping.
The benefits include saving time and energy used in shopping, easy access of goods and services that are not available in certain regions, access to goods and services by physically challenged persons, and enhancing efficiency. However, several drawbacks are evident such as insecurity, poor credit card compliance by the providers, and website hosts that cannot be trusted due to poor authenticity.
Finally, from the above discussion, e-commerce has more advantages in relation to disadvantages. Hence, it should be adopted in the world with the necessary input in security.
References
Bonsu, A & Darmody, A 2008, ‘Co-creating Second Life: Market—Consumer Cooperation in Contemporary Economy’, Journal of Macromarketing, vol. 28 no. 4, pp.355-368.
Constaninides, E 2004, ‘Influencing the Online Consumers Behaviour: the web Experience’, Emerald Research Journal, vol. 14 no. 2, pp.111-126.
Safety and security over the cyberspace has become such an important issue in determining consumer behavior. Thus the introduction of a Secure Online Shopping System (SOSS) is vital towards survival of an online business.
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 of internet shopping of many Chinese has increased making them willing to shop online as long as their security is ensured (Ira 2002).
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 behaviors of consumers have become significant determinants of consumer behavior therefore SOSS will ensure that consumers’ social and economic welfare is well thought-out.
According to Ira (2002), online consumers continued to use the internet amidst the economic recession experienced in Europe. According Kotler (1997), the highest number of internet users in China are those aged between 25 to 44 years.
It further states 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. It is thus important to establish how SOSS will influence behavior of customers in the Chinese Market.
Statement of the Problem
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.
The concept of E-commerce in relation to the topic of online consumer behavior has been examined 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 have focused on the security dimension of online shopping.
Thus, introduction security aspect of online shopping services will be analyzed to establish its influence on behavior of consumers. To achieve this broad objective of increasing online customer base for the products offered in Chinese market, 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 behavior; however, gaps still exist between the online and offline consumer behavior that warrants further studies. 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 the business.
Besides, these factors are directly linked to internal and external interacting social aspects that control the pattern of thought and expressed feelings.
Resonating on the facets of internal and external influences, this paper develops a comprehensive matrix for purchasing patterns exhibited by customers within the Chinese market in order to understand how SOSS influences the behavior of consumers in e-commerce.
Purpose of Study
To succeed in the e-business era therefore, companies need create adept initiatives and maintain long term sustainable relationship with loyal. SOSS is proficient platform that will help e-businesses remain relevant in this digital period (Ira 2002).
Then purpose of this study is to explicitly review emotions and motivations as the emerging forces within consumers that activate certain behaviors. 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, the research is specific on how SOSS will impact on consumer behavior by arousing their motivation to buy products online.
The aim is to find respondents who are the potential, if not actual customers of our online products who fall within the category of youths and young adults described in the introduction. One reason that informed the decision was the fact that such respondents are categorized as the most internet shoppers in China.
Limitations of Study
The study aims to make sure that the respondents chosen are aware of the brands investigated. Thus, a certain degree of familiarity with internet shopping and the security risks will be a prerequisite among the interviewees, in order to carry out meaningful discussions.
As a result, consumers who do not show any familiarity of the brand will not include as respondents despite having knowledge of online shopping.
Besides, being an empirical study, the researcher will depend on responses by these respondents that might not give accurate data.
Therefore, biased or selfish responses will have negative effects on the final outcome and this may render some of the findings inaccurate. In addition, the researcher may experience the constraint of time delays in sending the responses.
Review of the Literature
Koufaris (2002) 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 authors such as Engel and Nicosia among others.
A large part of this 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 between offline and online consumer behaviors.
Attitude and Perception on Online Trade
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 internalize and interpret 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 the internet.
There has been substantial research on consumer behavior, examining the decision process, and influences upon it, in terms of storage and brand characteristics and consumer behaviors (Thomson, Peteraf, Gamble, & Strickland 2008).
Central to the theories of consumer behavior 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 search 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 accurate and safe.
(Source: Kotler 1997)
External Influences of Online Buying Behavior
Several external influences affect online consumer behavior. 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.
Consumer behavior 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 (Thomson, Peteraf, Gamble, & Strickland 2008).
In fact, cultural beliefs 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 the preset societal mindset.
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 skyrocket. On the other hand, the reverse often leads to damning or uncomfortable response from potential customers who may appear reluctant to play along (Ira 2002).
Therefore, acceptance of a good or service is a reflection of its responsiveness to culture and a target group’s social affiliation.
The household structure basically represents the household composition in terms of age, occupants and their incomes (Thomson, Peteraf, Gamble, & Strickland 2008). On the other hand, groups in the context of consumer behavior represent individuals who share a set of common values, norms and beliefs.
The group and the household to which a consumer belongs to has a significant influences on consumer behavior that is influencing the decision making process. Mass media services are mainly concerned with generation of modern cultures.
Cultural values normally influence whatever values that are generated by mass media. Cultural values normally dictate what consumers would purchase; in fact, people buy certain signs when they are driven by the implication conveyed.
Moreover, semiotics plays a significant role in the ads because it inspects signs and implications that are conveyed and thus alerts the users about the relevance of a product.
E-Commerce Models
The Models of Intention, Adoption, and Continuance are essential in investigating the concepts of intention, adoption, and continuance on the process of online consumer purchasers.
(Source: Kotler 1997)
This model is an integration of two models of consumer behaviors: Kotler’s expectation-confirmation model and Ira’s attitudinal theoretical model (Thomson, Peteraf, Gamble, & Strickland 2008). The attitudinal theoretical model 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” (Thomson, Peteraf, Gamble, & Strickland 2008, p. 89).
However, this model does not explain consumer behavior in relation to repurchase. Ira’s expectation-confirmation model, on the other hand, focuses on past purchase behavior of consumers. This model is used in explaining consumer satisfaction with a service or good through their repeat purchases.
Thus, “consumer satisfaction is the key focus of this model and expressed via the gap that exist between the perceived performances” (Thomson, Peteraf, Gamble, & Strickland 2008, p. 78).
Kotler (1997) found that personal innovativeness of individual consumers is key personality characteristic that give an explanation of consumer online behavior. Baskerville (2004) contends that consumers’ trust on the internet is a significant determinant of online shopping.
E-commerce is non discriminative on the size of business since even retail chains are in a position to trade online. Moreover, this model of business operation functions exclusively online (Thomson, Peteraf, Gamble, & Strickland 2008).
In addition, “web tracking technology permits sites that practicing E-commerce to monitor customer satisfaction and preference” (Ira 2002, p. 56). These aspects allow such companies re-model to customize service delivery and maintain quality. At technological advancement improves, E-commerce is likely to widen further.
Consequently, it is cheap and easy to operate and open online stores “without a brick –and-mortar presence” (Thomson, Peteraf, Gamble, & Strickland 2008). In addition, E-commerce offers entrepreneurial opportunities to persons in all business fields. The recorded sales data estimate progress at 4% annually across the globe (Ira 2002).
Ira (2002) states that “It wasn’t until 1994 that e-commerce (as we know it today) really began to accelerate with the introduction of security protocols and high speed internet connections such as DSL, allowing for much faster connection speed and faster online transaction capability”(Ira 2002, p. 46).
However, full adaptation of E-commerce begun in 2000 in America and Europe by pioneer companies such as Amazon and eBay which became prominent in E-commerce for many brands of products (Baskerville 2004).
Model and Hypotheses
Conceptual Framework
The aims and objectives of this research paper are:
To gauge and quantify the reasons for the behavioral influence of SOSS in online trade within China
To identify the underlying factors that influence online purchasing behavior within China
To identify the most profitable online business model in the stratified market of China
To establish the most appropriate technique for introducing and maintaining sustainability of e-business within the borders of China
Research Questions
What are the profitable e-business models today? How do they compare to those that failed?
How to transfer consignment business model to e-commerce especially in a specialized niche market
Will people accept consignment business model in China? What difficulties are facing?
Hypotheses
Below are the null and alternative hypothesis based on the research problem.
H1o. There is no link in e-business efficiency and purchasing behavior in China.
H1a. There is a link in e-business efficiency and purchasing behavior in China,
H2o. There is no link between e-business model and success of an online business.
H2a. There is a link between e-business model and success of an online business.
H3o. There is no link between online brand awareness and the ease of online sales.
H3a. There is a link between online brand awareness and the ease of online.
Research Methodology
Research Design
Both descriptive and qualitative research methods will be used in this inquiry. Qualitative research method is a design which typically investigates behavior when it naturally occurs in a non contrived situation.
On the other hand, descriptive survey designs will be used in preliminary and exploratory studies to allow researcher to gather information, summarize, present and interpret for the purpose of clarification.
Descriptive investigative research is anticipated to produce statistical information about facets of SOSS that concern business that operate online Investigation of the problem will be conducted by means of both literature synopsis and empirical investigation.
Subjects of Study and Sample Size
The population targeted by this study includes 3 randomly picked participants within the Chinese market. To generate the sample size for this study population, the research will adopt the formulae created in 1972.
Sampling Formula
n=N/ (1+N (e2))
Where:
n = sample size
N= Target population
e= Degree of freedom
n=3/ (1+3*0.052)
n=3/1.025
n= 1.025
From this population, random sampling will be applied and questionnaires with close ended questions given to each participant.
Data Collection method
In the collection of data procedure, the research will adopt a drop and pick module for the sample population. Each respondent will be given a time frame of a week to respond to questions in the questionnaire. Where necessary, further clarification will be accorded to participants.
Statistical Techniques Used
Data analysis will begin from the onset of the interviews until the process of interviews is completed. After all the data are collected, the analysis of the transcripts will be reduced through a procedure known as coding. At this stage the researcher will conduct data reduction, presentation and interpretation.
The researcher will carefully but accurately transcribe the responses from participants recorded telephone calls as well as audio recordings. Transcripts from the interview questionnaire will be read and key points noted. Similarities and differences will be identified and key challenges presented by the managers, teachers and educators noted too.
After the analysis of data details, symbolic qualitative and high technological ways were employed to arrive at conclusions. The content analysis was used due to its ability to review a wide range of non-construction data.
The actual scenario was then analyzed through mathematical, statistical, and computational modus operandi to derive quantifiable results. Basically, the process relied heavily on respondent information from the twenty four participating organizations (Ira 2002).
Open ended online questionnaires were the main data collection tools since the process relied on voluntary response. This type of purposive sampling is done through the outlines of criteria which the participants have successfully fulfilled.
Open-ended questions were designed to allow the participants to fully express their experience without being too confined within the boundaries of a question. The semi-structured interview was used as it allowed the greatest possible advantages in creating an understanding of the experiences of the participants.
The structured set of questions acts as an outline allowing for the participant to inject personal perspective and diverse lines of inquiry that may not have occurred to the interviewer.
To make the responses inclusive despite the few numbers of respondents interviewed, the participants were selected from four different regions within China. 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. Nonetheless, the aspects of sex, age, and occupation were taken into account considering the target customers described in the introduction (See Transcripts in Appendix I).
The entire interview questions and answers given by respondents are attached in the transcripts as an appendix I.I.
Findings and Analysis
Before engaging in a business activity, it is vital to access its merits and demerits, risks involved security of the transaction, and regulative organs that directly provide protection from unpredictable and unethical practices by competitors.
The participants opine that the main disadvantage of E-commerce is the fears and doubts by potential customers who don’t how it works.
In this case, the potential customers are afraid of purchasing products online because of doubt on reliability, practicality, and risks involved especially when delivery is done to a wrong party.
Some of these customers may be curious on appearance and reality and may develop a negative attitude after an assumption of possible fraud. Besides, online stores do not give an option for wear, touch, trial of the product before purchasing.
Therefore, the sale of products such as furniture might be challenging. Moreover, invasion of malware and malicious codes in online stores might turn a simple business transaction into ‘Hellgate’ transmitting virus to PC of potential clients (Baskerville 2004).
In addition online trading limits the social aspect of shopping in which parties involve interacting physically with one another. Due to surge in the use of E-commerce, several security reasons have been identified by the participants, especially in safety of information exchanged.
The occurrence of some security threats has compromised the principles of authentication, privacy, and non-repudiation which is fundamental in protecting security breaches such as Denial of Service.
The most common threats in E-commerce include ICM Flood, Teardrop Attack, Plashing, Distributed Denial-of-Service Attacks, and Brute Force Attacks. These practices aim at compromising integrity of E-commerce.
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 for organizations as because customer’s attitudes and motivation significantly influences the consumer behaviors.
The earliest marketing principle of marketing was the model introduced by McCarthy in 1960 was the 4Ps marketing mix, defined by Product, Place, Price, and Promotion.
This marketing model was further modified by Bettman in 1979 to include the service industry introducing three additional variables: People, Physical evidence and Process (Baskerville 2004).
Due the unique characteristics of the service industry: intangibility, inseparability, and heterogeneity, these products can be offered to the market for an 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 we want to introduce in the operations of online shop in China will 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 1997). The service that SOSS creates is relatively inexpensive since customers will not be charged for using online shopping services, rather they are charging 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 our products by maximizing on economies of scale since these products are likely to sell in large scale.
Process refers to the mechanisms, procedures and flow of activities through which a service is delivered to customers. Koufaris (2002) 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 the information in their database SOSS takes into consideration the Place aspect of 7Ps marketing principles.
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 (Koufaris 2002).
Managerial Implications
As a matter of fact, visualization is dependent on internet networking and the ability of the targeted clients to access the same. Reflectively, the success of online trading and marketing depend on the type of business, the nature of products, and model of website in use.
In the contemporary society, it is in order to state that online trade made possible through the invention of websites is the only future way of doing sustainable and customer friendly business. Thus, it is important for small, medium, and large business to embrace technology in order to remain competitive in the hostile global business environment.
Every aspect of life is actively influenced by the revolutionary technological orientation and customers would gladly go for convenient purchasing tools. These services include all the tangible representation of the service being offered, such as, business cards, brochures, reports and Signage.
For example, 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 our products.
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 the products they are ordering.
Introduction of the Wi-Fi, iTunes, Blackberry applications, and Amazon search engines have made an online trade simple and reliable. For instance, the Wi-Fi and blackberry application permits potential client and seller to video conference and strike a deal irrespective of the distance between these parties.
Besides, potential clients are now in a position to bargain, view, and make modifications to their product before making payment. In addition, these gadgets are portable and have widened access to products online without necessarily being connected to the traditional wire internet which was slow.
Attitudes are direct personal experiences that are influenced by consumers’ personality, advertisement, family and friends. Perceptions are unique ways through which consumers internalize and interpret 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 perception 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’.
Thus, our business will endeavor to incorporate SOSS within these engines to ensure convenience on the side of consumers and constantly mobile trade. Reflectively, these aspects will influence the decision science and successful management of our business.
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 the 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 safest 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.
From the above research, markets are provided with a rich knowledge of consumer behavior as dependent on the degree of perceived positive and negative beliefs on a brand. Therefore, through improved advertising, balanced prices, and quality, markets will be in a position to monitor emotions and motivations which serve as the emerging forces within consumers that activate certain behaviors.
These emotions control direct and indirect behavior inclination that arouse the instinct to purchase or refuse to purchase. Though a temporary state of mind and emotions challenges the market preference and direct judgment to buy or reject a brand.
These articles facilitate the process of examining the decision process, and influences upon it; in terms of storage and brand characteristics and consumer behaviors.
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.
References
Baskerville, R. (2004). International e-business marketing. Alabama: Cengage Learning EMEA.
Ira, K. (2002). E-Marketing: What Went Wrong and How to Do It Right. Los Angeles: K&A Press.
Kotler, P. (1997). Marketing management: Analysis, planning, implementation and control. Prentice-Hall: Englewood Cliffs.
Koufaris, M. (2002). Applying the technology acceptance model and flow theory to Online consumer behavior, Information System Research, 13 (2): 205-223.
Thomson, A., Peteraf, M., Gamble, J., & Strickland, J. (2008). Crafting & Executing Strategy: Concepts and Readings with Connect. Alabama: McGraw-Hill Companies.
The use of online resources as a shopping platform continues to grow among people of different ages, gender, and economic status. Many people find it easier to look for a specific product online and buy it in order to meet their expectations (Lewis, 2006). The main advantage of this shopping approach is that a customer can access detailed information about the product and reviews of those who used it earlier before making a decision to buy.
As the number of online stores that offer different products increases, the number of people willing to shop online also increases. The decision of a customer to buy a product from a specific website depends on the reputation of the company and brand, which owns it (Huang & Lin, 2007). However, customers’ knowledge about the online platform also determines the buying behavior.
The majority of people who shop online are skeptical about giving personal information such as credit card, master card, personal identification documents, and other things. It is because of the security of their financial resources, which might be stolen by online fraudsters. Those who have no problem giving personal information do not have illustrative knowledge about online shopping platforms. Although many online stores and shopping sites have improved their security, a good number of these sites expose their customers to fraud. This is because of reluctance to change their technology.
The majority of people who use online shopping platforms are young people aged between 18 to 35 years. With the availability of modern technological applications, using an online platform has several benefits such as fastness, cheapness, and convenience (Yu & Wu, 2007).
Questionnaire Results
I frequently turn to online services when I need to buy a specific product
35.7% strongly agreed, 44.3% somewhat agreed and 10% had no opinion at the mom. The rest somewhat disagreed and strongly disagreed.
I shop online more frequently now than I did a year ago
40% of the respondents strongly agreed, 24.3% somewhat agreed, 15.7% had no opinion, and 12.9% somewhat disagreed. The rest strongly disagreed.
When deciding if I should buy a certain product online, I make my decision based on the reputation of the online service.
45.7% of the participants strongly agreed, 35.7% somewhat agreed, 14.3% had no opinion while the rest somewhat or strongly disagreed.
I consider the possibility of a confidentiality breach when I submit my personal information to the online service.
In this context, 31.4% strongly agreed, 42.9% somewhat agreed, 17.1% had no opinion while the rest either somewhat or strongly disagreed.
When I shop online, I am aware that financial information may be stolen.
34.3% strongly agreed, 35.7% somewhat agreed, 8.6% had no opinion while 14.3% somewhat disagreed. The remaining participants strongly disagreed.
I use online services because I believe that they are secure enough to provide decent protection of sensitive information.
20% of the respondents strongly agreed, 35.7% somewhat agreed, 24.3% had no opinion while 15% somewhat disagreed. The rest of the respondents strongly disagreed.
I think that online shopping is beneficial for the seller as well as the buyer, making it a mutually satisfactory attempt.
44.3% strongly agreed, 37.1% somewhat agreed while 12.9% had no opinion. The rest somewhat disagreed.
I think that a younger audience is switching to online shopping more easily.
62.9% of the respondents strongly agreed, 24.3% somewhat agreed while 12.8% had no opinion.
In my opinion, the resistance to change is the major barrier to the universal acceptance of online shopping.
32.9% strongly agreed, 30% somewhat agreed, 27.1% had no opinion while 8.6% somewhat disagreed. The rest strongly disagreed.
I was familiar with other internet resources when I started sopping online
40% strongly agreed, 34.3% somewhat agreed while 20% had no opinion. The rest of the respondents somewhat disagreed.
What are the negative factors you know to influence someone’s decision to not use online shopping services?
Out of the 70 respondents, 30 cited quality service, 15 quoted the security of personal information, 13 quoted fraud, 4 cited credit cards while 7 said nothing.
What types of products do you prefer to buy from the local stores even though you can buy them online from a trusted source?
19 respondents quoted clothes, 15 quoted electronic products, 11 quoted make-up products, 9 quoted food. The rest either bought nothing online or quoted other products.
What research tools and techniques do you use before making online purchases if any?
13 respondents cited search engine, 24 said online reviews, 15 quoted keyword and others, 10 cited brand while 4 cited social media. The rest did not use any technique.
What is your age?
31.4% of the respondents were aged 17-20, 34.3% aged 21-24 years, and 10% aged 25-28 years while 25.7% aged above 28 years.
How long have you been shopping online?
24.3% have at most 1 year of experience, 24.3% have between 1-2 years of experience, and 17.1% have between 2-3 years of experience while 40% have more than 3 years of experience with online shopping.
What is your gender?
57.1% of the respondents were females while 42.9% were males.
Discussion
With the emergence of the internet and various technological platforms in the same context, online services have continued to improve for the past two decades. The rapid improvement in internet use and technology development has made many people embrace internet services (Huang & Lin, 2007). Many companies have established an elaborate presence of their business operations on their websites. Through their online platforms, they sell goods to customers who also pay for them online.
With the rapid increase in cheap electronic devices that can be used to access the internet, many people continue to embrace internet resources and services offered on the platform (Biswas, 2004). The results of the respondents selected for the online shopping survey show that many people continue to embrace the internet as their shopping platform.
Based on the results, many people tend to buy specific products online. This might be because of their prior knowledge about their online presence and the reputation of specific online businesses (Barnes & Guo, 2011). When people get good services from an online seller, they tend to increase their use of those services. Many companies have realized the benefits of increasing their presence and improving their services online (Huang & Lin, 2007). Since several companies offer better services to customers, many continue to trust them and buy products and services. From the results, the frequency of using internet services increases as a person continues to use it.
Security is a fundamental factor that determines business transactions conducted over the internet. Not all online companies selling goods and services are trustworthy. A customer can be a victim of fraudsters (Lewis, 2006). They take advantage of customers’ ignorance to steal their credit card information and rob them. Others do not deliver goods and services after receiving payment from the customers. Based on the results, a good number of online shoppers are aware of fraud and breach of security online (Huang & Lin, 2007).
A decision to shop online as investigated using the first questionnaire depends on various factors such as the mode of payment, quality of services, geographical distances, and security (Lewis, 2006). The majority of people consider the quality of services and security as the main factors that might have a negative influence on their buying decision. The quality of services determines whether the delivered product meets the expectations of the client or not.
Many people depend on reviews from the previous users and ratings of business websites (Biswas, 2004). Younger people have more information about online businesses than in older generations. They tend to buy fashionable products such as cloth, shoes, make-up, and electronic devices from the internet.
Online shopping is recommended for the younger generation that embraces modern technology. However, it presents several challenges that should be addressed to have full satisfaction with the services (Lewis, 2006). It is recommended that the user assesses the reputation of a website before shopping. They can do this by going through the reviews of past users. The payment platform they use must be assessed to ensure sufficient security.
It is also recommended that users evaluate the mode of shipping, its security, and convenience (Yu & Wu, 2007). The additional information that would be added in this research is the use of mobile applications as an alternative online shopping platform. It is because mobile devices have become part of every household.
References
Barnes, S., & Guo, Y. (2011). Purchase behavior in virtual worlds: An empirical study in second life. Information & Management, 48(7), 303-312.
Biswas, D. (2004). Perceived risks in online shopping: Do signals matter more on the web? Journal of Interactive Marketing, 18(3), 30-45.
Huang, S., & Lin, F. (2007). The design and evaluation of an intelligent sales agent for online persuasion and negotiation. Electronic Commerce Research and Applications, 6(3), 285-296.
Levy, P. S. (2005). Simple Random Sampling. Encyclopedia of Biostatistics.
Lewis, M. (2006). The effect of shipping fees on customer acquisition, customer retention, and purchase quantities. Journal of Retailing, 82(1), 13-23.
Yu, T., & Wu, G. (2007). Determinants of internet shopping behavior: An application of reasoned behavior theory. International Journal of Management, 24(4), 744-762.
