Consumer Behavior of Online Purchase: A Review

Introduction:

In India the total number of internet users are 213 million in 2013, where as in 2014 the total number of users are 235 million and at the end of the 2015 it is expected that the internet users will increase to 350 million users.

Easily Reachable: Here one can access these shops any time without stepping out of their home/office.

It can be accessed any time (24*7): It can be accessed any time when you are on the move, relaxing in your home or having a time out at your office.

Richness of Content: Here all the products are displayed with the price and detailed mention of the features. 

Information Density: Potential customers can have a look at them, analyze what other similar online shopping outlets are offering and can get the best deal out of it.

Helps in promotion of goods and services 'use of the internet to advertise and sell goods and services‘. Many terminologies has been given such as digital marketing, online marketing, internet marketing, e-marketing etc by various researchers .The introduction and implementation of internet technologies has created new market for manufacturers and service providers and also has provided new arena for innovative marketing strategies by the professionals. Internet marketing covers sells/purchase of goods and services or advertising space over the internet. Cost effective product and services Online shopping is a form of electronic commerce which allows consumers to directly purchase products or services from seller over the internet using web browser . Online shopping provides all type of goods to be available in the virtual world. It is just like a shop in the neighbourhood, selling all type of goods but with some prominent differences.

Review of literature:

Lee & Lin, 2014, have used data from a survey of 297 online consumers to test the research model examined the relationship among e-service quality dimensions and overall service quality, customer satisfaction and purchase intentions. The analytical results showed that the dimensions of web site design, reliability, responsiveness, and trust affect overall service quality and customer satisfaction. Moreover, the latter in turn are significantly related to customer purchase intentions. The personalization dimension was not found significantly related to the overall service quality and customer satisfaction. 

Morris (2013) conducted a study on ‘More Consumers Prefer Online Shopping’ Shoppers increasingly want what’s called a “seamless Omni channel experience,” meaning one in which retailers allow them to combine online and brick and mortar browsing, shopping, ordering and returning in whatever combo they would like.

Dange & Kumar, 2012, have developed FFF model which talks about the factors which affect and motivate the consumer to buy products and services online, which are the combinations of external as well as internal factors. The external factors are beyond control of the customer but the internal factors are the elements of individual (human) traits, psychologies or behaviors.

Yulihasri, Islam and Daud (2011) conducted a study on ‘Factors that Influence Customer’s Buying Intention on Shopping Online’. The variables that were tested included usefulness of internet shopping, ease of use, compatibility, privacy, security, normative beliefs, self-efficacy, attitude and student’s buying intention. Pearson correlation analysis provided statistical information about the relationship of each independent variable with dependent variables. It was studied that web advertising favourably influences the purchasing of a company’s products.

Hernandez et al (2010) in their study aimed at analyzing moderating effect of e-purchasing experience. They analyze the perception of potential e-customers and experienced e-customers. They found that behavior changes with purchase experience. Over all shows that a website may receive millions of visitors only about 3% of those visits result in a purchase online.

Study by Vijay, Sai. T. & Balaji, M. S. (2009), revealed that Consumers, all over the world, are increasingly shifting from the crowded stores to the one-click online shopping format. However, in spite of the convenience offered, online shopping is far from being the most preferred form of shopping in India. A survey among 150 internet users, including both users and non-users of online shopping, was carried out to understand why some purchase online while others do not. The results suggested that convenience and saving of time drive Indian consumers to shop online; while security and privacy concerns dissuade them from doing so. 

Davis, (2002). Their study reveals that if more attractive online stores were developed. This raises the issue of examining what factors affect consumers to shop online. Therefore, a framework is needed to structure the complex system of effects of these different factors, and develop an in-depth understanding of consumers’ perceptions toward Internet shopping and their intentions to shop online. This study reveals that we build up such a framework based on previous research on consumer adoption of new self service technologies and Internet shopping systems. The research suggests that consumers’ perception toward Internet shopping first depends on the direct effects of relevant online shopping features. 

Ajzen (1994) in his study on perceptions towards online shopping reveals that perceptions toward online shopping and intention to shop online are not only affected by ease of use, usefulness, and enjoyment, but also by exogenous factors like consumer traits, situational factors, product characteristics, previous online shopping experiences, and trust in online shopping.

Conclusion:

Since introduction of e-commerce the volume of consumers using internet for purchase/sells of goods/services has increased a lot and is increasing continuously. The intention and behaviour of consumers has improved drastically. The experience of consumer’s also lead further analysistment in quality of product/services and “the way” these product/services are presented to them. Therefore a continuous working is required to improve “the way”.

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