[Problems and Barriers in Online Shopping]

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Table Of Contents

CHAPTER 1: INTRODUCTION1

Brief Introduction1

Background of the study2

Problem statement4

Objectives of the research project6

Rationale of the study7

Significance of the study8

Research Questions9

Research Design & data collection9

Brief Summary10

CHAPTER 2: LITERATURE REVIEW11

Brief Introduction11

Online Shopping12

Survey Analysis13

UK Consumer Behaviour- online shopping14

Motivation towards online shopping15

Benefits associated to online shopping16

Problems & Barriers regarding online shopping17

Online Retail Sector18

Online shopping - business perspective19

Specific problems for buyers19

Strategies to overcome barriers of online shopping20

Consumer Perceptions Of Uncertainty For Online Shopping21

Brief Summary22

REFERENCES23

BIBLIOGRAPHY27

Chapter 1: Introduction

Brief Introduction

Online shopping has become a worldwide phenomenon due to the increasing availability of broadband and computer literacy. But is UK on par with the rest of the world? Not yet, but we will be if we can overcome a few stumbling blocks. (Delafrooz, 2009, pp.166-77) The number-one reason for online shopping in UK not being where it could be is undoubtedly access to the internet. Although the number of people who have access to the internet is increasing every year and even every month, we are still not where we should be. (Gopi, 2007, pp.348-60)

The cost of internet access in UK is also significantly higher than in other countries especially compared to those in Europe and the US. We have, however, seen some price slashes recently — especially from Telkom — which means that costs are slowly but surely coming down. (Khalifa, 2007, pp.780-93) This is a positive sign for the future. There is, however, debate regarding whether the fall of Telkom's monopoly in ADSL line provisions with the introduction of another service provider will have any significant impact on the price of broadband in UK. (Ahmad, 2008, pp.77-95)

Another contributing factor to the current state of online shopping is the fact the major players in the retail industry in UK do not have an online presence whatsoever. (Krishnan, 2007, pp.1-25) Take for example Hi-Fi Corporation. Its website consists of a list of stores and its latest specials pamphlets. Convenient grocery shopping must be every mother's dream! Pick 'n Pay has managed to establish a very popular online store that is used by thousands every month with very few complaints. So, get the major players involved and we will surely see an increase in online shopping in UK. (Nor, 2008, pp.29-73) The third factor to be considered is that of delivery in UK. The unreliability of courier companies and fluctuating delivery charges are hindering factors in getting products to the customers in a timely and cost-effective manner. This problem goes hand in hand with the fact that most online stores do not actually carry stock, which means consumers wait even longer for their purchases, making shopping online very unattractive. (Hsbollah, 2009, pp.54-70) There are many more issues that affect online shopping in UK negatively, such as a lack of education regarding the security of shopping on the internet. We do not think twice before giving a waiter in a restaurant our credit card, but hesitate to use it on a secure site on the internet. (Yu, 2007, pp. 4-7)

Background of the study

Between 2006 and 2009, ...