On-line Sales Experience: An Investigation into the Perception & Experience of Shoppers

By

TABLE OF CONTENTS

LIST OF FIGURESIV

1.0 INTRODUCTION TO PROBLEM STATEMENT AND PURPOSE OF STUDY1

1.1 RESEARCH AIM1

1.2 CONTRIBUTION OF THE STUDY2

1.3 THEORETICAL FRAMEWORK3

2.0 LITERATURE REVIEW4

2.1 FEATURES OF THE WEB COMMERCE4

2.2 CURRENT STATUS OF ONLINE SHOPPING5

2.3 INTERNET USERS6

2.4 OPPORTUNITY COST OF TIME6

2.5 CONVENIENCE ORIENTATION7

2.6 PRIVACY8

2.7 YOUNG CHILDREN AT HOME10

2.8 PRODUCT SELECTION AND PERSONAL FIT11

2.9 AGE12

2.10 ONLINE SHOPPING ADOPTION13

2.11 CONDUCTING BUSINESS ONLINE16

3.0 METHODOLOGY18

3.1 PURPOSE OF THE STUDY AND TYPE OF INVESTIGATION18

3.1.1 TRENDS OF ONLINE SHOPPING19

3.1.2 GROWTH IN ONLINE SHOPPING21

3.2 DATA COLLECTION26

3.3 DESIGN27

3.4 THE QUESTIONNAIRE SURVEY28

3.5 DATA ANALYSIS28

4.0 FINDINGS28

5.0 DISCUSSION35

5.1.1 FAMILY INCOME35

5.1.2 COMPUTER PROCESSING/ INTERNET CONNECTION TIME37

5.1.3 ATTITUDE TOWARD SHOPPING ON THE INTERNET38

5.1.4 FREQUENCY OF SHOPPING VIA THE INTERNET40

5.1.5 LIMITED FINANCIAL RESOURCES41

5.1.6 WHO PURCHASES?41

5.1.7 INTERNET GROWTH42

6.0 CONCLUSION43

6.1.1 RECOMMENDATIONS48

6.1.2 VARIOUS DISCOUNTS, REDUCED PRICES AND GIFTS49

6.1.3 EASE LOVING CONSUMER49

6.1.4 THE RISKS FACING THE CYBER-CONSUMER53

6.1.5 THE SECURE CONNECTION TO THE SERVER PAYMENTS53

REFERENCES55

APPENDICES62

QUESTIONNAIRE62

LIST OF FIGURES

Figure 1: Buying Tendency28

Figure 2: Impact of Advertising28

Figure 3: Shopping Experience29

Figure 4: Frequency of Shopping29

Figure 5: Reasons for reluctance toward online shopping30

Figure 6: Searching behavior30

Figure 7: Attractive Features31

Figure 8: Problematic Features32

Figure 9: Retention Pattern32

Figure 10: Level of Purchase Satisfaction33

Figure 11: Credit Card Security Concern33

Figure 12: Causes of low online shopping38

1.0 INTRODUCTION TO PROBLEM STATEMENT AND PURPOSE OF STUDY

In response to dynamic consumer environments, marketing activities have continuously diversified in order to better serve consumers' needs. As one of the efforts, direct marketing has provided consumers with a variety of non store shopping options such as catalogue ordering, telephone and television shopping, and in-home shopping parties. For example, catalogue sales grew from $34.58 billion in 1992 to $64.31 billion (an 86.0 percent increase) by providing substantial benefits such as time-saving and convenience to consumers (Amin 2008, 493-503).

The latest trend in non store retailing is an online shopping. The recent rapid growth in computer use and technology has made it possible for buyers and sellers in retail markets to communicate more efficiently than ever via the Internet and thereby contributed to the development of electronic commerce. Online shopping has emerged as a revolutionary means of non store shopping for various products (Atchariyachanvanich 2008, 91-102). This paper investigates whether the subjective value of time as well as the objective value of time affects the frequency of online apparel purchases (Earl 2000, 33-8).

1.1 RESEARCH AIM

The aim of the study is to find the perception and behaviour of online shoppers. The objectives of the study are given below:

To understand the importance of online shopping

To find the attitude toward internet shopping

To understand the reservations of the customers regarding online shopping

To find security problems of internet shopping

In particular, study of on-line sales experience from the perception and experience of shoppers will focus on the following questions which need to be answered:

What are the reasons that customer prefer to shop on the internet?

What does customer check while shopping online?

What are the security problems faced by customers while shopping online?

1.2 CONTRIBUTION OF THE STUDY

Unlike traditional view of consumers' economic activities that goods are produced by consumer and are also ...