Factors Affecting Online Shopping Behavior Of Customers

Customer Satisfaction

Question:

Discuss about the Influence Of Social E-Commerce Variables On Online Shopping Behaviors Among Customers.

E-business refers to any business which uses internet technology to improve profitability and productivity. It refers to all such aspects of running the business which is included in selling the goods and services such as procurement, earning and retaining customers, marketing, developing customer education and business partners. It can be said that e-business became an extension of e-commerce and it encompasses all aspects of businesses which functions online. E-commerce came in the late 1970s but the general customers were introduced to e-commerce in the year of 1994. By the end of 2000, most of the businesses in Western Europe and America presented their goods and services online and thus this gave birth to e-business. E-bay and Amazon were the first e-businesses which carried out electronic transaction. E-business was advantageous to the vendors as well as the customers. It was advantageous over bricks and mortar stores (Joshi & Rahman,2015). E-commerce and e-business also allowed the vendors to keep a track of the preferences and purchases of the customers. Moreover, they also offered monetary savings to the customers and the ability to reach the customers. Both e-commerce and e-business offered online storefront and complete with the virtual shopping cart that can be e-mailed to friends and families. The consumers are also easily and quickly exposed to e-business because it uses more in-depth education and targeted marketing compared to other traditional modes of businesses. The customers can also compare the prices quickly on online stores which offer the best price to them.  E-business also has an electronic chat function which is used for technical and customer support. This paper will highlight the five factors which affects the online shopping behavior of the customers. This paper will also help the consumers to know the advantages of online shopping (Filieri & McLeay, 2014).

Customer satisfaction is an important factor which affects the shopping behavior of the customers directly. In order to be accepted and confirmed by the customers, the companies which deal with online services must provide the greatest delivered value so that the customers are loyal and are in advantageous position. The companies also measure this value by comparing the customer’s satisfaction and the factors which affects customer satisfaction such as value, customer needs and cost (Hajli, 2014). Customer satisfaction is also essential to gain financial performance of the services in a company and thus it plays an important role in the company in order to gain satisfaction. The companies that have developed rapidly with the increasing ace of technology have been able to achieve customer satisfaction and loyalty easily at a much lower cost. It has also been found that that e-commerce has significantly changed the way in which the business operates (Cantallops & Salvi, 2014).

Trust

Trust is another important factor which affects the buying decision of the consumers. Trust is directly connected with security. As the consumers cannot see the product physically while he is ordering it and he/she cannot have a glimpse of the salesperson, so it is vital for the companies to build trust among the customers in order to avoid that kind of uncertainty. Brand trust and loyalty plays an important role to overcome the disadvantages of internet to the customers. The consumer’s fear of online fraud is also one of the major reasons as to why the consumers are not using the e-commerce frequently (Zhang & Kim,2013). It is also seen that the perceived risk which is related to the consumer’s fear of losing the transaction are also done online. The risk is also related with the chance of purchasing the product or service. Moreover, the perceived value of the product is positively associated with the consumer’s intention of buying the product over the internet and this also contributes to e-loyalty. This also minimizes the customer’s needs and wants to go after alternative products. The risk which is associated with the online shopping behavior includes the product risk, non-delivery risk and the financial risk (Kumar & Ghodeswar, 2015).

E-retailing is also promoted widely as a convenient method for shopping. The consumers do not have to travel to far off places to purchase the products. They do not have to leave their home or find other merchandise options for shopping online. The customers can easily browse the items in the online stores by the category or items of their choice. Online shopping also helps the customers to buy the products which are not available in the nearby market. The customers can also save themselves from the crowd or chaos in the marketplace and purchase the products comfortably. Online shopping is preferred by customers due to easy accessibility, flexibility and convenience. The customers can also compare the products of other brands easily. There are many customers who compare the prices of the product with the other leading brands, services offered and the promotion of the product. E-retailing allows the customers to compare the products and the prices easily. It is also an easy way to compare the products on different sites easily (Al-Gahaifi & Svetlik, 2014).

Loyalty is another important factor which plays an important role in influencing the online shopping behavior of the customers. Loyalty represents a close relation between the brand and the customers. This strong relation is manifested through emotional link which joins the consumers’ continuity of consumption and purchasing. E-loyalty can also be expressed similar to store loyalty which indicates that the consumers are continuously buying the products through the same mode and of the same brand. Customer loyalty is also such a point in which the customers demonstrate and purchase the same products which have positively benefited them and they are willing to purchase it again. It is also very difficult for the companies to get loyal customers and the loyal consumers also consume more than the switchers. The loyal customers are also willing to spend more and e-loyalty is associated with quality customer support, compelling product presentations, ontime delivery, handling, reasonably priced shipping and many more. Moreover, customer service is also an important factor which affects the companies for doing e-businesses (Maniatis, 2016).

E-Retailing

Perceived ease of use is an important factor which affects the online shopping behavior of the customers. one of the major technology acceptance models and it helps in determining how a particular technology will be accepted by the people. It is also defined as the degree in which a person believes that they can use the particular system easily without much effort. The ability of the customers to use the internet easily in this era of globalization is an important factor which affects the customers decision to purchase online. It also refers to the consumer’s perception that shopping over internet will require minimal effort. Online shopping is also easily and readily accepted by the customers. Moreover, the perceived ease of use also has a close relationship with the self-efficacy which tries to measure the perception of the individual when performing a particular task. The perceived usefulness also influences the customers to purchase the products online (Rani, 2014).

Thus, it can be said that the five major factors which affects the online shopping behavior are discussed in this paper. There are many popular online sites which are preferred by the customers in purchasing their products through online mode. Cash on delivery is the most preferred mode of payment which is chosen and accepted by the customers. Moreover, if consumers are satisfied with the products and there is minimal risk involved, they prefer to buy or chose the product again. The retailers also try to make their website safer and they assure the customers that they will receive their product on time. This also plays a positive role in the consumer buying decision through online mode.

References

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Cantallops, A. S., & Salvi, F. (2014). New consumer behavior: A review of research on eWOM and hotels. International Journal of Hospitality Management, 36, 41-51.

Filieri, R., & McLeay, F. (2014). E-WOM and accommodation: An analysis of the factors that influence travelers’ adoption of information from online reviews. Journal of Travel Research, 53(1), 44-57.

Hajli, M. N. (2014). A study of the impact of social media on consumers. International Journal of Market Research, 56(3), 387-404.

Joshi, Y., & Rahman, Z. (2015). Factors affecting green purchase behaviour and future research directions. International Strategic Management Review, 3(1), 128-143.

Kumar, P., & Ghodeswar, B. M. (2015). Factors affecting consumers’ green product purchase decisions. Marketing Intelligence & Planning, 33(3), 330-347.

Maniatis, P. (2016). Investigating factors influencing consumer decision-making while choosing green products. Journal of Cleaner Production, 132, 215-228.

Rani, P. (2014). Factors influencing consumer behaviour. International journal of current research and academic review, 2(9), 52-61.

Zhang, B., & Kim, J. H. (2013). Luxury fashion consumption in China: Factors affecting attitude and purchase intent. Journal of Retailing and Consumer Services, 20(1), 68-79.