StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Why Are More Customers Switching to Online Shopping from Traditional Shops - Coursework Example

Cite this document
Summary
The paper "Why Are More Customers Switching to Online Shopping from Traditional Shops" is a good example of marketing coursework. Online shopping is a contemporary trend that is growing and gaining wide-spread acceptance as the preferred method of purchasing goods and services. Online shopping utilizes the use of technology particularly the computers, credit and debit cards and the internet to perform marketing operations…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.2% of users find it useful

Extract of sample "Why Are More Customers Switching to Online Shopping from Traditional Shops"

WHY АRЕ MОRЕ СUSTОMЕRS SWITСHING TО ОNLINЕ SHОРРING FRОM TRАDITIОNАL SHОРS Name: Student Reg. No: Discipline: Tutor: RESEARCH PAPER (LITERATURE REVIEW) Date of Submission: WHY АRЕ MОRЕ СUSTОMЕRS SWITСHING TО ОNLINЕ SHОРРING FRОM TRАDITIОNАL SHОРS Background Online shopping is a contemporary trend that is growing and gaining wide-spread acceptance as the preferred method of purchasing goods and services. Online shopping utilizes the use of technology particularly the computers, credit and debit cards and the internet to perform marketing operations. The advancement in technology through the internet has improved communication where parties can conduct business without necessarily coming into contact to one another. The capacity of the networked world to exchange information is accountable for the proliferation of Internet shopping. The inception of e-commerce and e-marketing systems has transformed the business arena from the conventional ways of purchasing. Currently, individuals do not have to physically visit the retail outlets or scramble for parking space at malls. Technology has made the process easier for consumers who are seeking convenience, price variability, and also to save time while shopping. In addition, online retailing platforms offer the consumers unique payment options which enhance their comfort with this channel of distribution. The online business model has provided consumers with an extended choice from the variety of retailers to select their items for instance Amazon and eBay have dominated the online retail business for years now. It has also changed the dynamics of marketing by enabling businesses to market their products through digital media. Companies are seeking information on their online clientele. As a result, they use the information gathered to suggestively market their products to them as well as tailoring enormous amounts of data to influence their purchasing decisions. A great deal of research has attempted to find out the consumer’s behavior while shopping online. The studies, however, have failed to identify the potential risks that these customers are likely to encounter when shopping online and how these can be mitigated. This research intends to identify the reason why customers are transitioning from the conventional shopping model to a modern business model that applies too much of technology. The paper focuses on the major influences for the increased migration of buyers from physical purchasing to electronic purchasing. These include increased access to information, convenience, reduced prices, variety, and time saving. However, there are some risks and drawbacks to this model such as the financial risks and non-delivery risks (Javadi et.al, 2012). Literature Review Some typical themes, particularly rational consumer behavior, internet, and purchasing attitudes emerge repeatedly throughout the wider literature reviewed. The literature review was guided by the aim to inquire what influences purchase decisions when consumers purchase online. Also, the study aims to answer the question why more customers prefer buying goods online as opposed to the traditional shops. Lim et.al, (2016) while studying the impact of purchase intention on the consumer’s behavior while shopping online, identified that the customer’s purchase objective was an outstanding predictor of their tendency to buy online. The Theory of Reasoned Action (TRA) purposes to expound human conduct. It stipulates that human behavior is led by intentions. The attitude of individuals towards perceived norms determines the formation of intentions (Javadi et.al, 2012). The actions of consumers online can be predicted through their perceived uncertainty of the channel, their intentions to search product prices, the energy they spend evaluating various products, and the delivery period, between buying online and offline (Gupta, Su & Walter, 2004). In coming up with their analysis, they studied a model with data of four items that had diverse features both jointly as well as separately. These products included wine, stereo systems, flight tickets, and books. The study characterized these items into experienced goods and search goods. They stipulated that search goods include those whose quality does not require to be tested before their purchase hence an increase in online shopping. However, experience goods include those products whose quality must be tested by consuming them before they are bought. According to Akbar & James, (2014), understanding the customer’s decision-making behavior can help online retail developers tailor their offers more directly to the customers. To comprehend the online decision process, 9 critical factors on business-to-business trading are suggested to influence customers to shop online. Some of the outstanding factors among the nine are price and refund. On these, they identified that online customers found the price variance among different digital retailers very small and that it took much of their time to evaluate each product. Also, e-retailers should incorporate a suitable refund policy to their systems to assist them to capture the trust of the buyers. These, and seven other factors, were considered important influencers of the consumer’s acceptance of online shopping. According to a study carried out on the Consumers’ Perception on Online Shopping by Shanthi & Kannaiah, (2015), customers perceive online shopping very convenient as it allows them to make purchase decisions at the comfort of their homes. Consumers necessarily don’t have to visit the shop. They can find information about available products online, where it is easier to compare the prices with those of rivals to conclude on their purchase. Hence, e-retailers have developed platforms to convince their clientele and change them into active customers by tailoring their marketing plans to them in a manner that encourages them to make a buying decision. In their Study on the Influencing Factors of Online Shopping, Wang, Liu and Cheng, (2008) identified that the transacting of business online experienced various risks since its inception. Some of the issues proposed by them were the safety of the various methods of payment and dispensation of credit, the privacy of individual’s information, the customer’s cognition, as well as the consumer’s experience in using computers and the internet. The study proposed that despite the highest levels of internet usage in both China and the U.S., the percentage of individuals who have used online shopping platforms was still wanting. Hence, this raised the concern on what impacted such a low consumption of e-retailing services despite these countries’ high population and a surge in online shopping globally. The ability to offer 24 hours service is accountable for the increased motivation for customers to buy goods and services online (Katawetawaraks & Wand, 2011). Buyers tend to associate with the convenience offered by online stores where they can access information and the products they require even after the close of normal business. Customers are also likely to benefit from the vast access to information online as well as the customer reviews about products. Also, customers have the prospect of accessing a variety of items from all over the world that are only availed through the internet. Online shopping allows the consumers to compare prices offered by various retailers and select the relatively lower price for the same product. Since online retailing services can be accessed from anywhere at any given time, customers do not have to undergo the stress of staying in long queues to pay for their products or get caught up in traffic when intending to shop (Rigby, 2011). The commonality of the customers’ interaction with the internet does not primarily impact on their online shopping behavior (Zhou et.al, 2007). The literature associates decreasing internet know-how with its rapid penetration into mankind’s diurnal life as well as the growth of the world population consuming the internet. The authors stipulate that emotions can have a far-reaching impact on the ability to convert an online product seeker into a buyer. Nevertheless, the impact of emotions on online purchasing decisions can vary based on the consumer’s experience online and the available product categories (Morris, 2013). The availability of a wide selection of products, fast delivery and lower prices are more important factors that influence online shopping character. The study also identified that an online store could act as powerful research tools since the customers can search for a product online and but it offline (Chang, 2015). Therefore, the internet has emerged as a substitute to the old-versioned model of trading, rather than as a rival. According to Paul and Hogan, (2015), customers tend to listen to recommendations from personal contacts as well as those on social media before making a purchase decision. Therefore, retailers have diversified their systems to incorporate communicative features that permit customers to discuss and obtain responses from other customers who have previously had an online experience. The research suggests that consumers happen to trust reviews by third-parties rather than those of the retailing companies. Discussion Many notions have been stipulated to explain the behavior of consumers when doing shopping online. A majority of these studies propose the factors that influence the purchase decision. There is limited literature on the factors that scare online users from making purchases through the internet. These potential risks of using networked technology pose a challenge that requires further reading. Only one of the literature reviewed attributed consumer behavior to the perceived uncertainties the customers are likely to face when shopping online. Some of these risks such as the privacy of the user’s information and the uncertainty of delivery affect the actions of customers online (Hamza, V., & Saidalavi, 2016). The potential of the Internet to facilitate the actions of consumers is also overlooked in the majority of studies conducted. It is reasonable to assume that improvement in access to the Internet has resulted in the increased number of customers purchasing goods online (Yannopoulos, 2011). There is little research to support this view. However, the advancements in mobile technology have contributed to the upsurge of online transactions. Also, a majority of the e-retailers are utilizing mobile payment methods to facilitate transactions (Ilkin, 2003). Therefore, it can be argued that increased consumption of technology and the Internet has played a major role in many customers switching to the online shopping platform from the traditional method. Conclusion Online shopping is tremendously overtaking the traditional mode of conducting business. This research on the factors causing switching between the online and traditional platforms identified that convenience is the leading factor that impacted purchase decisions. Cost and time saving followed while perceived risks also affected the consumers’ online purchasing character. Nevertheless, there is a knowledge gap that must be filled by future studies regarding the capacity of technology and the internet to render this seamless online experience through the unique features that facilitate interaction and customized services through an empirical analysis on what are the motivational factors that impact online shopping and how to mitigate security concerns related to online shopping?. The qualitative nature of this research provides no data on the statistics of online shoppers or internet users. More quantitative research needs to be carried out maybe through the use of a questionnaire to provide more informed analysis. References Akbar, S., & James, P. T. ( 2014). Consumers' Attitude Towards Online Shopping: Factors Influencing EMployees of Crazy Domains to Shop Online. Journal of Management and Marketing Research, 1-9. Chang, J. ( 2015). Online Shopping: Advantages over the Offline Alternative. Journal on Internet Banking and Commerce.http://www.icommercecentral.com/open-access/online-shopping-advantages-over-the-offline-alternative.php?aid=38815 Gupta, A., Su, B.-C., & Walter, Z. (2004). An EMpirical Study of Consumer Switching from Traditional to Electronic Channel:A Purchase Decision Process Perspective. Hamza, V., & Saidalavi, K. (2016). Advances in Management: A Study on Online Shopping Experience and Customer Satisfaction. Journal on Management. Ilkin, M. (2003). Impact of E-Commerce and Use of Information and Communications Technology on Promotion and Development of Intra-Oic Trade. Journal of Economic Cooperation. 24(4), 81-128. Javadi, M. H., Dolatabadi, H. R., Nourbakhsh, M., Poursaeedi, A., & Asadollahi, A. R. (2012). An Analysis of Factors Affecting on Online Shopping Behavior of Consumers. International Journal of Market Research, 4(5), 81-98. Katawetawaraks, C., & Wang, C. L. (2011). Online Shopper Behavior: Influences of Online Shopping Decision. Asian Journal of Business Research, 1(2), 66-72. Lim, Y. J., Osman, A., Salahuddin, S. N., Romle, A. R., & Abdullah, S. (2016). Factors Influencing Online Purchase Behavior: The Mediating Role of Purchase Intention. 7th International Economics & Business Management Conference.35, pp. 401-410. Elsevier B.V. Morris, B. (2013, June 3). More Consumers Prefer Online Shopping. Retrieved October 15, 2016, from The Wall Street Journal: http://www.wsj.com/articles/SB10001424127887324063304578523112193480212 Paul, A. K., & Hogan, S. K. (2015, September 10). On the Couch: Understanding Consumer Shopping Behavior. Retrieved October 15, 2016, from Deliote University Press: http://dupress.deloitte.com/dup-us-en/industry/retail-distribution/understanding-consumer-behavior-shopping-trends.html Rigby, D. K. (2011, December). The Future of Shopping. Retrieved October 15, 2016, from Harvard Business Review: https://hbr.org/2011/12/the-future-of-shopping Shanthi, R., & Kannaiah, D. (2015). Consumers' Perception on Online Shopping. Journal of Marketing and Consumer Research, 13, 14-20. Wang, N., Liu, D., & Cheng, J. (2008). Study on the Influencing Factors of Online Shopping. 11th Joint Conference on Information Sciences (pp. 1-4). Atlantis Press. Yannopoulos, P. (2011, October). Impact of the Internet on Marketing Strategy Formulation. International Journal of Business and Social Science, 2(18). Center for Promoting Ideas, USA. Zhou, L., Dai, L., & Zhang, D. (2007). Online Shopping Acceptance Model-A Critical Survey of Consumer Factors in Online Shopping. Journal of Electronic Commerce Research, 8(1). . Akbar, S., & James, P. T. (2014). Consumers' Attitude Towards Online Shopping: Factors Influencing EMployees of Crazy Domains to Shop Online. Journal of Management and Marketing Research, 1-9. Arce-Urriza, M. &Cebollada, J. The Internet as a Shopping Channel and Database Description: An Empirical Application to Online Grocery Shopping. SSRN Electronic Journal.http://dx.doi.org/10.2139/ssrn.1416038 Chang, J. (2015). Online Shopping: Advantages over the Offline Alternative. Journal on Internet Banking and Commerce.http://www.icommercecentral.com/open-access/online-shopping-advantages-over-the-offline-alternative.php?aid=38815 Chu, J., Arce-Urriza, M., Cebollada-Calvo, J., &Chintagunta, P. (2010). An Empirical Analysis of Shopping Behavior Across Online and Offline Channels for Grocery Products: The Moderating Effects of Household and Product Characteristics. Journal Of Interactive Marketing, 24(4), 251-268. http://dx.doi.org/10.1016/j.intmar.2010.07.004 Dhyani, A. (2016). University Students' Perspective towards Online Shopping.ANVESHAK-International Journal Of Management, 5(2). http://dx.doi.org/10.15410/aijm/2016/v5i2/100698 Gupta, A., Su, B.-C., & Walter, Z. (2004). An EMpirical Study of Consumer Switching from Traditional to Electronic Channel:A Purchase Decision Process Perspective. Hamza, V., & Saidalavi, K. (2016). Advances in Management: A Study on Online Shopping Experience and Customer Satisfaction. Journal on Management. Ilkin, M. (2003). Impact of E-Commerce and Use of Information and Communications Technology on Promotion and Development of Intra-Oic Trade. Journal of Economic Cooperation. 24(4), 81-128. Javadi, M. H., Dolatabadi, H. R., Nourbakhsh, M., Poursaeedi, A., & Asadollahi, A. R. (2012). An Analysis of Factors Affecting on Online Shopping Behavior of Consumers. International Journal of Market Research, 4(5), 81-98. K., H. (2013). Influence of Product Types on Consumer’s Attitude towards Online Shopping: An Empirical Study in the Indian Context. International Journal Of Marketing Studies, 5(5). http://dx.doi.org/10.5539/ijms.v5n5p41 Katawetawaraks, C., & Wang, C. L. (2011). Online Shopper Behavior: Influences of Online Shopping Decision. Asian Journal of Business Research, 1(2), 66-72. Kaur, H. &Sukhmani,.(2013). Customer attitude towards online shopping in Punjab.Indian Journal Of Economics And Development, 9(4), 379. http://dx.doi.org/10.5958/j.2322-0430.9.4.02 Kennedy, A. & Coughlan, J. (2006). Online shopping portals: an option for traditional retailers?.International Journal Of Retail & Distribution Management, 34(7), 516-528. http://dx.doi.org/10.1108/09590550610673590 Khitoliya, P. (2012). Customers Attitude and Perception Towards Online Shopping. PARIPEX, 3(6), 18-21. http://dx.doi.org/10.15373/22501991/june2014/6 Kumar, V. & Mishra, S. A Study of the Attitude Towards Online Shopping: A Conceptual Model Regarding Intention Formation, the Role of Perceived Risks. SSRN Electronic Journal.http://dx.doi.org/10.2139/ssrn.2287643 Lim, W. (2014).Understanding the Influence of Online Flow Elements on Hedonic and Utilitarian Online Shopping Experiences: A Case of Online Group Buying.Journal Of Information Systems, 28(2), 287-306. http://dx.doi.org/10.2308/isys-50773 Lim, Y. J., Osman, A., Salahuddin, S. N., Romle, A. R., & Abdullah, S. (2016). Factors Influencing Online Purchase Behavior: The Mediating Role of Purchase Intention. 7th International Economics & Business Management Conference.35, pp. 401-410. Elsevier B.V. Lissitsa, S. &Kol, O. (2016). Generation X vs. Generation Y – A decade of online shopping. Journal Of Retailing And Consumer Services, 31, 304-312. http://dx.doi.org/10.1016/j.jretconser.2016.04.015 Morris, B. (2013, June 3). More Consumers Prefer Online Shopping. Retrieved October 15, 2016, from The Wall Street Journal: http://www.wsj.com/articles/SB10001424127887324063304578523112193480212 O'Guinn, T. (2015). Bricks and mortar: offline shopping in online America. Consumption Markets & Culture, 18(5), 468-473. http://dx.doi.org/10.1080/10253866.2015.1013600 Park, J., Hill, W., & Bonds-Raacke, J. (2015).Exploring the relationship between cognitive effort exertion and regret in online vs. offline shopping.Computers In Human Behavior, 49, 444-450. http://dx.doi.org/10.1016/j.chb.2015.03.034 Paul, A. K., & Hogan, S. K. (2015, September 10). On the Couch: Understanding Consumer Shopping Behavior. Retrieved October 15, 2016, from Deliote University Press: http://dupress.deloitte.com/dup-us-en/industry/retail-distribution/understanding-consumer-behavior-shopping-trends.html PREFERENCE OF SHOPPING ON ONLINE VS OFFLINE IN BANGLADESH. (2016). Researchers World : Journal Of Arts, Science And Commerce, VII(3), 64-72. http://dx.doi.org/10.18843/rwjasc/v7i3/08 Rakesh, T. &Madhushree, S. (2015). Consumers Perception towards Online Shopping With Special Reference to DakshinaKannada(D). International Journal Of Online Marketing, 5(3), 38-46. http://dx.doi.org/10.4018/ijom.2015070103 Renny, Guritno, S., &Siringoringo, H. (2013). Perceived Usefulness, Ease of Use, and Attitude Towards Online Shopping Usefulness Towards Online Airlines Ticket Purchase. Procedia - Social And Behavioral Sciences, 81, 212-216. http://dx.doi.org/10.1016/j.sbspro.2013.06.415 Rigby, D. K. (2011, December). The Future of Shopping. Retrieved October 15, 2016, from Harvard Business Review: https://hbr.org/2011/12/the-future-of-shopping Scarpi, D., Pizzi, G., &Visentin, M. (2014). Shopping for fun or shopping to buy: Is it different online and offline?.Journal Of Retailing And Consumer Services, 21(3), 258-267. http://dx.doi.org/10.1016/j.jretconser.2014.02.007 Schramm-Klein, H. & Wagner, G. (2014).Broadening the Perspective on E-Commerce: A Comparative Analysis of Mobile Shopping and Traditional Online Shopping.Marketing ZFP, 36(2), 119-130.http://dx.doi.org/10.15358/0344-1369_2014_2_119 Shanthi, R., & Kannaiah, D. (2015). Consumers' Perception on Online Shopping. Journal of Marketing and Consumer Research, 13, 14-20. Swarnakar, P., Kumar, A., & Kumar, S. (2016). Why generation Y prefers online shopping: a study of young customers of India. IJBFMI, 2(3), 215.http://dx.doi.org/10.1504/ijbfmi.2016.078604 Swatman, P. & Chin, C. The Virtual Shopping Experience: Virtual Presence as a Motivator for Online Shopping. SSRN Electronic Journal.http://dx.doi.org/10.2139/ssrn.630061 Wang, N., Liu, D., & Cheng, J. (2008). Study on the Influencing Factors of Online Shopping. 11th Joint Conference on Information Sciences (pp. 1-4). Atlantis Press. Yannopoulos, P. (2011, October). Impact of the Internet on Marketing Strategy Formulation. International Journal of Business and Social Science, 2(18). Center for Promoting Ideas, USA. Yi Jin, L., Osman, A., Romle, A., & Haji-Othman, Y. (2015).Attitude towards Online Shopping Activities in Malaysia Public University.Mediterranean Journal Of Social Sciences. http://dx.doi.org/10.5901/mjss.2015.v6n2s1p456 Zhou, L., Dai, L., & Zhang, D. (2007). Online Shopping Acceptance Model-A Critical Survey of Consumer Factors in Online Shopping. Journal of Electronic Commerce Research, 8(1). Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Why Are More Customers Switching to Online Shopping from Traditional Coursework, n.d.)
Why Are More Customers Switching to Online Shopping from Traditional Coursework. https://studentshare.org/marketing/2086914-why-are-more-customers-switching-to-online-shopping-from-traditional-shops
(Why Are More Customers Switching to Online Shopping from Traditional Coursework)
Why Are More Customers Switching to Online Shopping from Traditional Coursework. https://studentshare.org/marketing/2086914-why-are-more-customers-switching-to-online-shopping-from-traditional-shops.
“Why Are More Customers Switching to Online Shopping from Traditional Coursework”. https://studentshare.org/marketing/2086914-why-are-more-customers-switching-to-online-shopping-from-traditional-shops.
  • Cited: 0 times

CHECK THESE SAMPLES OF Why Are More Customers Switching to Online Shopping from Traditional Shops

The Role of E-Commerce and Online Shopping, Factors Affecting E-Commerce

… The paper “The Role of E-Commerce and online shopping, Factors Affecting E-Commerce” is a fascinating example research proposal on e-commerce.... The paper “The Role of E-Commerce and online shopping, Factors Affecting E-Commerce” is a fascinating example research proposal on e-commerce.... A survey based on a questionnaire will then be prepared to gather information about the consumer choices that affect the popularity of e-commerce as a method of shopping....
7 Pages (1750 words) Research Proposal

Impact of Virtual World on Marketing Strategy of Major Corporations

This is termed as online shopping or internet shopping.... A virtual world is one of the many online communities present on the internet.... Thus, it is a computer-based online community.... A virtual world is one of the many online communities present on the internet.... Thus, it is a computer-based online community.... However, currently, such advertisements are likely to undergo extinction since the organizations need to concentrate on attracting online customers....
10 Pages (2500 words) Term Paper

Customer Value Offered by YouTube, Innocent Ltd, Paddy Power, Red Bull, IKEA, and LEGO

There is no defined way in which one will get revenues from all its clients without sending them.... from three recipes, the company has over 30 recipes today packaged in three different sized bottles.... YouTube enables a platform where its customers share and watch videos and other information.... ase 1 – YouTube (page 23)The type of customer value offered by YouTube YouTube enables a platform where its customers share and watch videos and other information....
8 Pages (2000 words) Assignment

Online Advertising as a Method of Promotion

Over the years, however, the trend of online shopping has been while working on increasing and research shows that it will continually catch up and grow faster.... This is because people have shifted to online buying.... There are media companies that are more exposed than others.... traditional advertising, on the other hand, involves the non-reliance on web-based methods to bring customers.... This paper critically evaluates the disruptive effect of online advertising on the traditional advertising industry....
7 Pages (1750 words) Coursework

The Advertising Strategy That TOMS Need to Adopt after Considering Their Target Market

They look to match people with newer generation but are more likely to read a newspaper and watch television.... People prefer to use traditional media and based on the different advertisements being broadcast determine their purchasing habits.... Instead, they rely on traditional forms of media like newspapers, radio, and television.... This age group looks to gather information from magazines and online sites rather than listening to radios....
10 Pages (2500 words) Case Study

The Impact of the Internet and other New Technologies on the Practice Of Marketing

In the modern-day, there is a need to have information and analysis of such information so as to determine the outcome and hence the most important decision from any given scenario.... Customers are usually concerned about saving time and convenience whenever they are engaged in shopping.... customers are also able to pay for the products in a very convenient way and the same is shipped with very little inconvenience.... The business also makes use of the internet to deliver support for customers and disseminate information in addition to providing the training required by their employees (Bailey 2011, p....
22 Pages (5500 words) Coursework

Relationship between Consumers and Advertisement

Advertising provides facts with or without approval from consumers while customer behavior encompasses expressions of curiosity at this stage (Hovland & Wolburg, 2008).... While shopping and making a decision to buy, customers develop a 'to-do' list guided by suddenly thinking of a product and behavior stemming from reminders.... Weilbacher (2003) argues that in most consumer research, rather than pure stimuli, advertisements are often snapshots taken from a broader perspective notwithstanding the dominant experimental paradigm....
6 Pages (1500 words) Coursework

Purchasing Apple iPad Online

The development of the internet has created a new paradigm shift off traditional shopping methods.... The consumers are not bound by the traditional opening times or specific locations.... The development of the internet has created a new paradigm shift off traditional shopping methods.... The consumers are not bound by the traditional opening times or specific locations.... Some characteristics make the internet to be more convenient for consumers as compared to the traditional ways of shopping such as the ability to view and purchase products at any time, visualize their needs with products as well as discuss products with other consumers in different locations in real-time (Babu, Vani & Panchanatham 2010)....
7 Pages (1750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us