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Effect of online shopping on the consumer

Visit for more related articles at Journal of Internet Banking and Commerce Abstract From selling furniture to local grocery through e-commerce portals, Indian e-commerce market has come a long way [1]. Every year, the investments made by foreign players in Effect of online shopping on the consumer keep increasing for the burgeoning e-commerce Indian market. Every new player, as their first step, is trying to understand the complex and vexing Indian consumer. In the last two decades, substantial amount of studies have been done in e-commerce sector to understand the online shopping behaviour of consumers.

Mostly these studies have been conducted in foreign context, especially in United States, China, and some European and South-east Asian countries.

In this paper, critical analysis of these studies has been done and discussed. Afterwards, few critical factors are identified and a theoretical model is proposed to understand the Indian online consumer. Keywords Online Consumer Behavior; Mobile-Commerce; Electronic-Commerce Introduction Two decades back, when Internet came to existence in India, nobody had envisioned its growth from few thousands to above million internet users Internelivestats.

From portals like Rediff. Now, we are moving to an era, where e-commerce has paved way to m-commerce and more e-commerce players are investing heavily on bringing innovative technology to the consumers [ 1 - 3 ].

Global e-commerce behemoths like Amazon, Alibaba, and Softbank etc. Owing to favorable demographics young educated populationincreasing Internet penetration, affordable technology smartphones and internet connections and rising standard of living, India pictures a lucrative and attractive market for these global players [ 4 ].

Currently, the big players in the Indian market are majorly focusing on the discount based model. But providing steep discounts on every other product is not sustainable in long run and there lies the challenge [ 5 ].

For how long these big companies afford to give discounts riding on investors and venture capitalists money. Now, in a country like India where majority of the customers are price sensitive and majority of sales numbers are only boosted through umpteen discount deals on various occasions and these promotions are only making the Indian consumers greedy, which per se questions the sustainability of such model in the coming years [ 7 ].

Hence, it becomes interesting area of research to identify factors which help in understanding the Indian consumers and unraveling of key determinants which might help these big players into developing a long term sustainable model. Criteo Research, [ 3 ] reveals that online shopping through mobile platform has become the preferable choice for customers in Asia Pacific region.

It was found that 60 percent and 54 percent of all ecommerce transactions in Taiwan and Southeast Asia respectively are done through mobile shopping platform. As per Assocham report, 78 percent of the shopping queries in in India were made through mobile devices as compared to 46 percent in [ 8 ]. This clearly demonstrates that Indian online consumers are gradually shifting towards mobile devices and smartphones are the new game changer in this sector.

Hence, it becomes naturally interesting area to explore the antecedent factors in context of m-commerce as well. Online consumer behaviour, online shopping experience, online purchase behaviour etc. There has been number of articles effect of online shopping on the consumer research papers published in variety of marketing, psychology and information technology journals.

The scope of these studies have been broad and researchers have explored theories from psychology, information systems and marketing discipline and have applied and developed these theories to understand the behaviour of online consumers. Gamut of factors has been discussed in different researches and different underlying theories give different perspective for understanding the online consumer. Sometimes, the conclusions also differ because of different objectivity of these studies and different sectors in which these studies ranging from shopping books, to banking, to purchasing medicaments etc.

Therefore, the main objectives of this study are threefold: This paper is organized in following fashion: Literature Review The literature survey for the study was conducted by going through over research papers collected from various electronic databases like EBSCO, ProQuest etc. In the survey, latest research papers included were until June and covered past relevant literature went back as old as Figure 1. Number of research papers per year. Out of these research papers, 77 research papers have been analyzed and arranged in chronological order for identifying major underlying theories and determinant factors for further analysis and discussion.

In the literature analysis, attempt has been made to include only those papers which are relevant to our research objective and exhaustive in nature.

The theory deals with explaining the voluntary behavior of human actions arising due to already existing attitudes and behavioral intentions [ 12 ]. As explained below in Figure 2, behaviour is shown as outcome of behavioural intention which per se is result of attitude towards the act or behaviour and subjective norm influencing the individual [ 13 ].

Theory of reasoned action. For example, if a person voluntarily smokes, according to this theory - this action is basically an outcome of the attitude beliefs, value systems and dispositions that the person has developed over years through his surroundings, upbringings, and approval of the social group family, friends, peers in which he lives in.

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Hence, in this theory, behavior is defined as planned and deliberate and a third component is included called perceived behavioral control to predict planned human behaviour.

Theory of planned behaviour. The model attempts to explain how individuals learn to accept and are ready to adopt new technology.

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The major factors responsible for any successful technology acceptance as defined in this model are Perceived usefulness and Perceived ease of use [ 16 ].

Majorly, the model has been generally applied for studying acceptance for information systems and computer technology in real life. As shown above in Figure 4, perceived usefulness and perceived ease of use will influence the attitude and behaviour towards the computer usage.

In the model, Davis also assumed that these two factors are dependent on external variables like social factors, demographics factors, cultural factors etc. In recent years, TAM has been explored and extended into different model versions, i. Originally, the theory was developed to explain the post-purchase and post-adoption satisfaction of users as a function of expectations, perceived performance and disconfirmation of beliefs [ 19 ].

Later, this theory was adopted and explored in Information System IS field to explain the post-purchase satisfaction related to use of information technology and information system [ 20 ].

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Bhattacherjee [ 21 ] in his work inexplained the continuance of IS usage through factors of confirmation and perceived usefulness. Attitude is outcome of the behavioural beliefs and feelings which an individual possesses regarding any particular action [ 14 ]. It can be positive and negative and ultimately, it influences the degree of intention to perform behaviour.

Many researchers have shown that attitude towards online shopping is a significant determinant of making online purchases [ 22 ] and purchasing behavior [ 2223 ]. Subjective norm is function of all the perceived pressure an individual faces in view of family, friends, peers and society [ 14 ]. If an individual feels that a particular behaviour will be appreciated or approved by people around him, he will have more intention to perform that particular behaviour.

The literature suggests a positive relationship between subjective norm and intended behavior, and empirical work has shown that subjective norm influences behavioral intentions toward system use [ 24 ].

Ajzen [ 14 ] added perceived behavioral control as third antecedent for predicting actual planned behaviour. It effect of online shopping on the consumer outcome of past experiences and anticipated hurdles while performing a behavior which influences both the intention to perform the behaviour and the actual behavior. Previous studies have found that the Planned Behavioral Control PBC directly influences online shopping behavior [ 23 ].

Ajzen [ 14 ] defined intention as purposive measurement of any individual's willingness to carry out a particular behavior. As mentioned in the theory of reasoned action, it is described as function of both attitude towards a behavior and subjective norms towards that behavior.

Online purchase intention can also be characterized as a circumstance where a buyer is ready and expects to make online exchanges. There are many instances in recent studies where significant relationship was found between purchase intention and purchase behaviour [ 141525 - 27 ]. Perceived ease of use: In Technology acceptance model, perceived ease of use is described as the extent to which the user anticipates the application system to be independent of any effort [ 16 ]. In context of online shopping, it can be also defined as the degree to which a consumer expects to buying products online would be effortless [ 29 ].

Hence, the amount and nature of risk perceived by consumer in purchases made on online medium is referred as perceived risk [ 32 ]. Any possible negative outcome related to uncertain nature of electron transaction as perceived by online consumers is perceived risk [ 33 ].

Tan, concluded that higher perceived risk may lead consumer to offline purchases effect of online shopping on the consumer low perceived risk increase the likelihood of online shopping.

In online context, two types of risks are of paramount nature: Perceived security risk is the danger generally associated with the computer safety, security of credit card or any financial information shared over the online medium [ 35 ]. Perceived privacy risk is the danger generally associated with privacy of shared personal information over the online medium and the ability to control the collection and usage of information by the web vendors [ 36 ].

When one party has feelings of confidence and security towards the other party, it leads to creation of sense of trust [ effect of online shopping on the consumer ]. Hence, when a person has confidence and faith in the other person, then only the first person will have trust in the transaction [ 38 ]. Trust is considered as important antecedent factor in online transactions and lack of it leads consumers to be less willing to go for the e-commerce transaction [ 303439 ].

In psychology, hedonic motivation is characterized by effect of pleasure or pain receptors which leads a person to move towards an action or move away from it [ 41 ]. When a shopper looks for attaining amusement, entertainment, fun, relaxation, enjoyment, excitement from any shopping activity, this motivation is referred as hedonic motivation []. Many researchers have found out that hedonic motivation encourages shopping activities effect of online shopping on the consumer consumers in both online and offline channels [ 945 ].

When a shopper is goal and task oriented, rational and takes shopping as a problem solving activity, such shopper is defined as utilitarian shopper. Such consumers have certain objective while shopping and they treat this activity efficiently and accomplish it in timely manner. Many studies have concluded that utilitarian shoppers has willingness and intention to shop online due to factors like ease of use, usefulness, convenience, broad product spectrum, minimum physical effort, accessibility [ 46 - 48 ].

Demographics-Demographic variables are among the most frequently studied factors by the researchers. The effect of age, gender, income group, education and culture on behaviour of consumer while shopping has been researched a lot in past [ 49 - 51 ]. Most of research questionnaires for studying online consumer behaviour have questions related to demographics [ 52 ]. Age, education, gender, marital status, residential location and income were commonly observed as imperative indicators for online shopping [ 53 - 55 ].

They also commented that reliability and response rate of the websites characterized the performance of any website. For creating first impression and attracting consumers, website design, captivating appearance, simple layout, effective navigation, and up-to-date information are the primary requisites [ 57 ].

Many researchers have found out that shoppers with high internet self-efficacy are more comfortable with online shopping [ 60 ]. For undertaking any behavioral action, possessing necessary skills and knowledge is an important requisite. Therefore, the self-efficacy factor is considered as important factor for studying online shopping behavior [ 61 ]. Nielson referred that usability is linked to various aspects of a system such as the ease of managing the system, learning its basic functions, degree of efficiency of the system and error free handling of the system by the user.

In online context, many researchers have extended the term perceived usability to perceived website usability. Many researchers have considered this as an important factor influencing the shopping behaviour of the consumer [ 63 - 65 ]. Relevant Antecedent Factors in Indian Context Khare and Rakesh [ 66 ] conducted a survey on a sample of students to determine the antecedents of online shopping behaviour in Indian context. In the study, male students were found to have more positive attitude towards online shopping as compared to female students.

In another study, impulse purchase orientation, prior online purchase experience and online trust were found to have significant impact on the customer purchase intention [ 67 ]. The results also concluded that males have more intention to shop online than females. Hence, online retailers were recommended to target the impulse purchase orientation nature of Indian consumers and to focus on increasing online trust.

Thakur and Srivastava [ 68 ] conducted an empirical study on customer usage intention of mobile commerce in India. The purpose of the study was to investigate the factors impacting the adoption intention of mobile commerce.