The Benefits Of Online Shopping Marketing Essay

This chapter presents the theory portion on on-line consumer and non-online shoppers. It will lucubrate on the behaviour and attitude of both on-line and non-online consumers. It will besides put accent upon the consumer perceptual experience toward on-line shopping every bit good as consumer motive. In add-on to that, it will discourse all the factors that are act uponing consumers to online shopping for illustration, trust, payment, some benefits and drawbacks and amongst others.

2.1 Introduction

Indeed, due to the broad spreading of the cyberspace and the exponential addition in the figure of cyberspace users, online shopping has acquired an intense attending. Originally, the cyberspace was used chiefly for academic intents, research scientists and pupils but presents, with all the latest engineering, it has been accessible for everyone and besides it has become a really effectual selling tool for the retail concerns and for concern every bit good.

Harmonizing to Shim, 2001, he states that ‘purchasing via the cyberspace is one of the most quickly turning signifiers of shopping ‘ . Some old ages back, people did non cognize about on-line shopping, they would make their shopping at the little store, would purchase their merchandises in a supermarket. But today, with all the installations nowadayss, some people prefer to make their shopping online.

Several research workers have carried out several surveies and they have besides examined the factors that influence consumer ‘ attitude and perceptual experience toward on-line shopping. Harmonizing to Chiu et al. , 2005 and Sclosser, 2003 they stated that, ‘attitudes toward online shopping can be defined as a consumer ‘s positive or negative feelings which is linked to carry through the buying behaviour on the cyberspace ‘ . That is, to cognize about the consumer ‘s attitude, we need to cognize the feature of those who are involved in online shopping and what their attitude in on-line shopping.

In the position of Hollensen, 2004, he elaborated that ‘whether it is the traditional market or the on-line market, the sellers must understand the consumers and how he makes his determinations and buying picks ‘ . Meaning that the seller must understand the consumer, particularly in footings of their demand and behaviour, how the consumers make their picks in buying a peculiar merchandise. The sellers should do advertizement in a really proper manner in which the consumer can easy construe the information.

Several articles have identified some features of the on-line consumer. Such as, harmonizing to Smith & A ; Allred, 2006, they have identified some features as followed ; younger, wealthier, better educated computing machine literacy. Whereas, Garicia 1999 has identified the online shoppers as older, do more money, convenience searcher, positive attitude toward advertisement and monetary value conscious. However as we can see, some of the features are similar while others are the antonyms.

2.2 Benefits of online shopping

In the research of Zuroni Md and Goh Hai Ling ( 2012, p. 224 ) have argued that ‘consumer can bask on-line shopping for 24hours per twenty-four hours ‘ . Furthermore, he besides argued that ‘online shopping is more environmentally friendly ‘ therefore the consumers can carry through his or her desires with merely a chink of the mouse without any traveling. In add-on, the writer has besides elaborated that there are a batch of touchable advantages that is the web site is unfastened 365 yearss not stop.

Harmonizing to Anoopa Jheegut ( 2006, p. 7 ) summarized some of the benefits as follows ;

Salvaging money and clip.

Wider pick of merchandise.

No waiting line.

No force per unit area from a sales representative.

Consumers can shop online at any clip, wherever they are, whether in office or at place.

As a consequence, convenience is the chief ground for shoppers to shop online. However, for those working tardily at dark or they are non being able to make their shopping so they find it easier to shop online. But despite all these benefits of online shopping, yet many consumers are loath to shop online.

2.3 drawbacks of online shopping

In the positions of Jheengut Anoopa ( 2006, p.7 ) province some disadvantage of online shopping which are as follows ;

Lack of personal contact.

These merchandises can non be touched, tasted nor smelled.

Some consumers fear about security and privateness.

Consumers fear that their recognition card or their dealing information might be seeable to another individual.

Through that, online shopping has been a recent new characteristic that has been created but yet some people are non being able to swear these systems. Consumers do fear about their security and besides are unable to swear these freshly created web sites. This is where, we see that people still go to the retail shops where they can purchase their desires merchandise, where they can touch it and seek it themselves.

Lawrence et al. , ( 1988 ) province that ‘ there is concern by consumers directing their credits card inside informations over the cyberspace. ‘

2.4 consumer behaviour

David L. Et Al ( 1988 ) stated that ‘consumer behaviour is a procedure and physical activity that persons occupied in when evaluating, geting, utilizing or disposing of goods and services ‘ . Therefore, it means that consumer behaviour surveies how single select, purchase and utilize good in order to fulfill their desires and demands.

A research by J. Peter El Al ( cited Peter D. Bennett, 1989, p. 40 ) stated that, ‘ consumer behaviour can be defined as the dynamic interaction of affect and knowledge, behaviour and environmental events by which human existences conduct the exchange of their lives ‘ . Therefore as a consequence of this statement, we see that there are three of import definitions that are attached to consumer behaviour. First we see that, it province that consumer behaviour is dynamic, secondly we see that cognitive, behaviour and environmental events are attached to it and so eventually, it involves an exchange to that. By the first definition it means that single, groups and society invariably changed, they evolved over clip that why they are dynamic. In add-on to that, cognitive, environmental and behavior are all an facet of interaction, therefore consumer behaviour involves interaction. Therefore, to understand the consumer, it ‘s imperative that the sellers understand what the consumers feel, think and what they do. The topographic points and objects besides have an influential facet of the consumers. Therefore, it is really of import to cognize the consumers and its interaction so as to be able to aim them. Further to that, harmonizing to the last definition, it indicates that consumer behaviour involves exchange ; it is so as the function of selling is to make an exchange with consumers.

A research by Anders Hasslinger et Al. ( 2007 cited that Donal Rogan 2007 ) province that ‘strategy is about increasing the chance and frequence of purchaser behaviour and its demand is to cognize the consumer ‘s demands and wants ‘ .

Harmonizing to Kotlers and Armstrong ( 2007 ) , he elaborated that the determinations of a consumer are influenced by a figure of features that are linked to the consumer demands and wants.

2.4.1 Consumer features

Consumer purchases are strongly affected by cultural, societal, personal and psychological features. However, it is said that sellers can non command all these factors but it is really necessary that they take them into history. Sellers should be able to place these factors as it is through these factors that they will be able to make up one’s mind what kind of marketing scheme they will utilize and to what sort of consumer they will aim. In add-on to that, more specific designation of the on-line consumer demand to be elaborated so as to understand the on-line purchase behaviour.

2.4.1.1 Cultural features

Cultural factors are the chief influences of consumer behaviour. It is so as the seller needs to understand the three facets of the cultural features which are as follows ; civilization, subculture, and societal category.

Culture ; civilization is mentioned as the most basic beginning of a individual ‘s wants and behaviour. Kotler and Armstrong ( 2007 ) argue that human behaviour is mostly erudite and therefore as a consequence, turning in a society, we are exposed to basic values, perceptual experience, wants and values which influenced our behaviour and determination devising. Hence, these features are really of import for a seller as they are the chief indexs of a certain consumer behaviour and their gustatory sensation.

Subculture ; Harmonizing to Kotler and Armstrong ( 2007, p. 138 ) , defined subculture as ‘a group of people with shared value systems based on the common life experience and state of affairss ‘ . That is, each civilization is divided into smaller subculture, or we can state that it is divided into groups of people where they shared some common life experience and state of affairss. These subcultures are frequently an of import market section where sellers designed their merchandises and plans which are personalized to their demands.

Social category ; in the positions of Kotler and Armstrong, he argued that consumer behaviour is besides influenced by some societal factors such as household, societal function and position. Kotler and Armstrong ( 2007, p. 141 ) defined ‘social categories are comparatively lasting and ordered divisions in a society whose members portion similar values, involvements and behaviours ‘ . Therefore, it is a combination of factors which gathers different type of members.

2.4.1.2 Social features

A consumer ‘s behaviour is besides influenced by societal factors such as little groups, Family, societal function and position.

Groups ; Harmonizing to Kotler and Armstrong ( 2007, p.142 ) explains that ‘a individual ‘s behaviour is influenced by many little groups ‘ . Anders Hasslinger et Al. ( 2007, p.20 ) elaborated that ‘when a group has a direct influence so it is called a rank group and mention groups are the group that a individual wants to belong but is non ‘ .

Family ; The household members have a great influence on the purchasing behaviour. Very frequently we see that the members of household influence other toward the same thing that they have bought. Anders Hasslinger et Al. ( 2007, p.21 ) , elaborated that ‘ the engagement and influence of different household members varies both to which grade but besides in what ways ‘ .

Social function and position ; each and every individual belong to a different type of group and they play a different function by holding a different place in the assorted groups. Kotler and Armstrong ( 2007 ) identified functions ‘as an activity that people are expected to execute from another member of the groups.

2.4.1.3 Personal features

The personal features are categorized as ; Age and life rhythm phase, Occupation, Economic state of affairs, Lifestyle, Personality and self construct.

Age and Life Cycle ; It explains the different periods in life that a consumer experience in life.

Occupation ; It has an consequence on the merchandises and services bought by the consumers. Anders Hasslinger et al. , ( 2007 ) stated that ‘ business leads to the possibility of developing different types of merchandises or services that suit the involvements identified to be above norm within an business. ‘

Economic Situation ; Wealth does impact a consumer ‘s merchandise pick. Anders Hasslinger et Al, . ( 2007 ) have elaborated that a consumer may be monetary value sensitive or may even non depend on the degree of income, degree of salvaging and besides the merchandise or service itself.

Lifestyle ;

2.4.1.4 Psychological features

The psychological features are divided into motive, perceptual experience, acquisition, beliefs and attitude.

Motivation ;

Percept ;

Learning ;

Beliefs and attitude ;

2.4.2 On-line consumer features

2.4.2.1 Cultural online features

2.4.2.2 Social online features

2.4.2.3 Personal online features

2.4.2.4 Psychological online features

2.5 identified factors impacting on-line consumer behaviour

2.5.1 Price factor

2.5.2 Trust factors

2.5.3 Convenience factors

2.5.4 Enjoyment factors

2.6 attitude

Several research workers have carried out surveies in order to analyze the factors that influence the consumer’attitude and perceptual experience toward doing on-line purchases. Harmonizing to Guo Jun and Noor Ismawati Jaafar ( 2011, p. 123 ) stated that ‘consumer ‘ attitude is an influenced factor that affects the consumers ‘ purchasing willingness ‘ whereas Gurvinder Shergill and Zhaobin ( 2005, p. 80 ) stated that ‘consumers ‘ attitude towards online shopping is a outstanding factor which affect the existent purchasing behaviour ‘ . Therefore, we see that both writers argue that consumer attitude is so a factor that affect the purchasing behaviour of the consumer.

A research by zuroni MD Jusoh and Goh Hai Ling ( 2012 cited Chiu El al. , 2005 ; Schlosser, 2003 ) , they stated that ‘consumer ‘ attitude can be defined as a consumer position or negative feeling which is related to carry throughing the buying behaviour on the cyberspace ‘ .

However, an illustration of an attitude is that a individual might detest to utilize the computing machine to play games online or anything else, so, utilizing the computing machine to play is the behaviour and the individual ‘s feeling is the attitude.

Many writers have come up with a different signifier of attitudes and shopping purpose towards online shopping. Harmonizing to Jarvanpaa and Todd ( 1997 ) , in their theoretical account, they have developed four clsassification that is ;

The value of the merchandise

Shoping experience

Quality of the service

And the hazard perceptual experiences.

However, in his following article ( 2000 ) , he has besides mentioned about the degree of trust, which he affirmed to be associated with the attitude of the consumer. He steadfastly believes that the attitude and hazard perceptual experience affect the consumer ‘s purpose to do a purchase or non.

To reason, it is so true that for a consumer to do purchases online, all the hazard factors and the four categorizations of Todd is taken into consideration before doing the purchase.

2.7 factors impacting consumer ‘s online shopping attitude

Prior surveies have elaborated in several factors that could hold influenced the consumer ‘s attitude towards online shopping which are as follows ;

2.7.1 Serviceability

2.7.2 Security

2.7.3 Privacy

Luis V. Casalo et al. , ( 2007 ) province that ‘privacy refers to the protection of personal information. ‘ Clarke ( 1999 ) defines ‘privacy as the person ‘s right to be entirely. ‘

2.7.4 After sale service

2.7.5 Selling

2.7.6 Repute

2.7.8 Utility

Usefulness which refers as the perceptual experience of consumers as an result of the online shopping. However, it is about the perceptual experience of utilizing the cyberspace as a medium for shopping which will heighten the result of shopping experience and its utility.

A research by Jheengut Anoopa ( 2006 cited Teo 1999 ) showed that sensed utility is a ‘significant factor that have so affected the attitude towards online shopping ‘ .

2.7.9 Ease of usage

Ease of usage that is the easiness of utilizing the cyberspace as a shopping medium. In an article ( Anon 2004, p.108 ) it was stated that easiness of usage is the ‘consumer perceptual experience that shopping on the cyberspace will affect a lower limit of attempt ‘ . Therefore, as a consequence, easiness of usage explained the relaxation of utilizing the cyberspace as a medium to shop online. However, there are some dimension of easiness of usage that is in footings of experience, control, computing machine gaiety and computing machine anxiousness.

Experience

It is believed that consumers who have some old experience in online shopping will most likely to buy online once more as they already have the experience and this will straight impact the easiness of usage. Therefore, a positive attitude will be formed by this.

Control

Benedict Dellaert ( 2004, p. 108 ) province that ‘ Control relates to an person ‘s perceptual experience of the handiness of cognition, resources and chances to execute a specific behaviour. ‘

Computer Playfulness

It is about the grade of cognitive impulsiveness in computing machine interactions. Venkatesh ( 2000 ) affirmed that ‘ Playful person may be given to undervalue the trouble of the agencies or procedures of online shopping because they are rather merely to bask the procedure and make non comprehend it as being effortful compared to those who are less playful. ‘

Computer Anxiety

Jheegut Anoopa ( 2006, p. 11 ) defined computing machine anxiousness as ‘ an person ‘s apprehensiveness or even fear while utilizing the computing machine ‘ . There are many factors that can lend to computing machine anxiousness for illustration ego efficaciousness, computing machine literacy, feeling and beliefs. Therefore, this can take to a negative facet of easiness of utilizing the cyberspace as a medium to shop online.

2.8 specific consumer traits and behaviour

Through the consumer traits, we got an apprehension of why consumers shop online. It includes demographic factors and personality traits.

2.8.1 Demographic Factors

There are largely four relevant factors for demographics namely- age, gender, instruction and income. In the positions of Burke ( 2002 ) , he stated that these four factors have a important consequence on the relationship between the basic determiner that is easiness of usage and utility. As a consequence, these four variables have an impact on the determination of whether to purchase online or non.

Age

Harmonizing to Wood ( 2002 ) , he explained that largely the younger grownups, those who are under 25 old ages are more interested in engineerings and cyberspace so as to happen new merchandises and information as compared to the older consumers. Thus, older consumers are largely satisfied with the conventional shopping methods instead than seeking on the net and do a purchase. This is so as they are non familiar with computing machine and besides they have free clip, therefore, they are less likely to be indulged in the computing machine shopping.

Whereas, refering the younger coevals, there is a inclination that they are most likely to be in favour with the online shopping as there are new characteristic and they like to see new things.

Gender

When it comes to gender, work forces by and large express a greater involvement by utilizing a assorted type of engineering in the shopping procedure whereas adult females usually, they prefer utilizing catalogs to shop at place.

In the research of Anoopa Jheegut ( 2006, cited Thompson, 1996 ) stated that ‘ for working adult females, shopping along with other family undertakings, become a peculiar challenge and therefore can be associated with a negative feelings ‘ .

Burke ( 2002 ) and Li et Al, ( 2002 ) both concluded that ‘female consumers prefer to shop online, store more often than their male opposite numbers ‘ .

Therefore, so adult females and work forces differ in their shopping orientation.

Education

Education plays a really of import function among the three basic deciding factors and consumer ‘s attitude toward on-line shopping. Indeed, if we think that to be able to do a purchase online, it ‘s really necessary to be educated and have IT accomplishments.

In the positions of Burke ( 2002 ) , stated that ‘ higher educated consumers are more comfy utilizing the cyberspace to shop online ‘ . Therefore, Li et Al. ( 1999 ) concluded that ‘ instruction is a positively correlated with an person ‘s degree of the cyberspace literacy ‘ .

However, Anoopa Jheengut ( 2006, p. 12 ) argued that ‘ acceptance behaviour is likely to be influenced by instruction as pioneers tend to be more pedagogues than non- adoptive parents ‘ .

Income

In the article of Benedict G.c Dellart ( 2004, p. 110 ) stated that ‘consumers with a higher household income intend to shop more online compared to a lower income consumers ‘ . The ground that he have mentioned in this statement is that the higher income consumer are positively correlated with the ownership of computing machines, internet entree and a higher degree of instruction.

Therefore, so, income dramas an of import function in doing a purchase online. It is so, as decidedly the 1 who have a higher income will be more likely to make online shopping as foremost they are more comfy at utilizing the cyberspace to do a purchase and so, they can purchase anything that is low-cost. Furthermore, due to clip restraints they ca n’t purchase anything therefore they have to merely merely log on to a shopping web site and so do a purchase. However, anterior surveies have sustained the positive relationship between online shopping and consumer income.

2.8.2 Personality traits

The personality traits that have been considered in this survey are Expertise, Self efficaciousness and Need for interaction.

Expertness

An expertness that is an person ‘s degree of cognition and accomplishments. To be able to shop online it is really of import to hold a considerable sum of cognition and accomplishments. Ratchford et Al. ( 2001 ) stated that ‘ those who have experience at shopping on the cyberspace are likely to be more skilled ‘ .

In add-on to that, if a consumer ‘s deficiency this expertness, so they may happen it more hard to shop online and hence a negative attitude toward on-line shopping will be created in their head.

Self Efficacy

Another personality feature which is closely linked to expertise is the ego efficaciousness. Self efficaciousness refers to an person ‘s belief that make them believe that they have the possible ability and resources to execute a peculiar undertaking. To be able to shop online, consumer ‘s demand to hold a basic cognition of the computing machine and besides knowledge on the cyberspace.

Marakas et Al. ( 1998 ) defines computing machine ego efficaciousness as ‘individual ‘s judgement of efficaciousness across multiple computing machine application spheres ‘ and internet ego efficaciousness as ‘a individual ‘s judgement of his or her ability to use the cyberspace accomplishments in a more across-the-board manner ‘ .

Therefore, to reason, consumer ‘s with a low ego efficaciousness are diffident and uncomfortable in utilizing the net to shop as for a little and simple process they would necessitate a small cognition.

Need for interaction

The concluding feature that is required in the context of on-line shopping is the ‘need for interaction ‘ . It is defined as ‘importance of human interaction to the consumer in service brushs ‘ by Dabholkar ( 1996 ) .

Some people like to discourse with the gross revenues individual before doing a purchase, they like to cognize the extra characteristic or their position before purchasing a peculiar merchandise. But, in the instance of online shopping, the gross revenues individual is replaced by aid button and hunt characteristics. However, a consumer who likes to be assisted by a gross revenues individual may be given to avoid shopping online as they believe that online shopping do non provide for their demands.

Therefore, this implicates that the consumer features ‘ demand for interaction ‘ has so an consequence on the relationship on the consumer ‘s attitude.

However, there are besides some instances where, people do n’t wish any sort of intervention before purchasing any merchandise therefore they may happen on-line shopping attractive in this instance and therefore a positive attitude is formed toward the attitude of on-line shopping.

Agarwar and Prasad ( 1998 ) argue that ‘personality traits play a function in invention acceptance ‘ . Rogers ( 1995 ) stated that ‘innovativeness steps how fast and to what extent an single adopts new invention ‘ . Therefore, as consequence innovativeness is related to online shopping. It is so as shopping online can be considered as an advanced behaviour as compared to the traditional manner of shopping.

2.9 payment manner

2.10 E- shopping Quality- websites quality, bringing period

2.11 consumer perceptual experience

A research by Guo Jun and Noor Ismawati Jaafar ( 2011 cited Vellido et.al 2000 ) showed that he has summarized some factors which are related to consumer ‘s perceptual experience of on-line shopping. The factors are hazard of perceptual experience of users, convenience, control over, affordability of the merchandises and goods, the easiness of utilizing shopping web sites and besides the client service. ( To be continued )

2.12 consumer motive

The figure of consumers purchasing on-line supports on increasing twenty-four hours by twenty-four hours. ( To be continued )

2.13 consumer satisfaction

Grace T.R and Chia- Chi Sun ( 2009 ) , stated that satisfaction is a ‘ station activity mensurating index that measures the interior province of the client ‘s feeling about the past purchase and experience of shopping ‘ . Therefore, what can be deduced is that satisfaction is an rating and emotional response to the experience that have been gained in the shopping procedure. Oliver ( 1997 ) , described client satisfaction as ‘the drumhead psychological province ensuing when the emotion environing disconfirmed outlooks is coupled with a client ‘s anterior feeling about the client experience. ‘

Zhao ( 2010 ) describes satisfaction in footings of a ‘ pleasing psychological experience in response to an on-line purchase. ‘

In the research of Xia Liu et al. , ( 2008 cited Kotler 1997 ) illustrates that there are three phases in the shopping procedure viz. the information hunt and options rating, purchase phase and the post- purchase phase. The overall satisfaction is affected by all the factors in the procedure of online shopping. Below shows figure 1 where it illustrated the theoretical account of the satisfaction in the e-commerce environment.

Phase 1.jpg

Extracted from the research Xia Liu et Al, . ( 2008 cited Kotler 1997 ) .

Information hunt and alternate rating phase ;

At this phase, the information quality, atmosphere associated with the site, how it functions and the assortment of ware and monetary value dramas an indispensable function in whether the consumer are satisfied or non.

Peterson et al. , ( 1997 ) stated that ‘more intensive and higher quality information available online leads to higher degrees of client satisfaction. ‘ Manes ( 1997 ) indicate ‘good web design lies in better organisation and easy hunt. ‘

Purchase Phase

However, in this phase, dealing capableness, response, security / privateness and payment may impact satisfaction.

Yianakos and Grabner – Kraeuter ( 2002 ) elaborated that ‘inadequate substructure, deficiency of trust and privateness and security concerns may take to lost gross revenues ‘ . Culman et Al, . ( 1999 ) mentioned in his survey that ‘online consumer are more keenly aware of the demand for privateness and security. ‘

Post- purchase phase

This phase is influenced by the efficiency of logistics and client service. In the research of Xia Liu et al. , ( 2008 cited Chen and Chong, 2003 ) stated that ‘the most common types of ailments about the internet dealing include refund and charge differences, faulty merchandises and hapless client service. ‘

In add-on to that, delayed bringing may hold a negative impact on satisfaction.

Kotler ( 2007 ) defined satisfaction as ‘the effect of the client ‘s experience during the assorted buying procedure ‘ . As a consequence, the grade of satisfaction of the client is really critical as it the satisfaction that can merely act upon the consumer for the following purchase.

2.14 drumhead