Consumer Behaviour in Online Shopping free essay sample

In recent years, with technological advancement and invention of internet, online shopping has become popular among consumers. As the online shopping has developed into a new medium of transaction, the numbers of cyber shoppers are increasing significantly (Hasslinger, Hodzic amp; Opazo 2007). The rapid increase is illustrated by the growth in the use of internet with a change in consumer behaviour (Oppenheim amp; Ward cited in Hasslinger, Hodzic amp; Opazo 2007). According to Tombs and Seamons (2013), the definition of consumer behaviour is â€Å"the buying behaviour of final consumers which consists of individuals and households that buy goods and services for personal consumption†. The model of buyer behaviour contains 3 parts: the environment, buyer’s black box, and buyer’s responses. And there are 4 aspects of factors influencing consumer behaviour: cultural (culture, cultural group, social class); social (reference group, family, roles and status); personal (age and life cycle stage, occupation, economic situation, lifestyle, personality and self-concept); psychological (motivation, perception, learning, beliefs and attitudes). In terms of online shopping, three main factors have been found to influence consumers purchasing behaviour. Firstly, based on personal influence, it is convenient for consumers. Generally, online shopping is available and accessible for customers all day long without having to worry about opening hours. Some companies have online customer services available 24 hours. Therefore, even after business hours, customers can seek assistance if they encounter any problems or have questions about the products. As such, customers often find shop from the website that is offering convenience can reduce their psychological costs (Prasad amp; Aryasri 2009). Secondly, based on social influence, Tombs and Seamon (2013) stated that reference groups can influence a persons attitudes or behaviour. Consumers tend to purchase goods online when there is a reference group, such as reviews from other customers. Besides the information that may be retrieved online, consumers can also benefit from products’ reviews by other customers which may provide further insight and help in the decision making. Thirdly, based on psychological attribute, the beliefs and attitudes of consumers, such as brand image and trust, play an important role in influencing consumers to purchase goods online . According to Hahn and Kim (2008), consumers tend to purchase goods online from brands they trust. The following paragraph will describe these influences by using the example of Amazon. , Amazon is an American multinational electronic commerce company. It is the worlds largest online retailer with separate retail websites for 10 countries providing international shipping. As mentioned earlier, one of the factors influencing consumers to purchase online is personal influence. The lifestyles of people in recent days give consumers more opportunities to access to e-commerce, which provided a premise for success of Amazon. Moreover, according to Tombs and Seamon (2013), a person has several needs in any particular time. When these needs are strong enough, they will become motivations. Compared with bricks-and-mortar stores, Amazon offers a convenient and flexible shopping process to consumers without limitations of time and where they are. That means Amazon can meet this motivation in time, but bricks-and-mortar stores cannot. Additionally, Wasserman (2009) notes consumers like to read what other consumers statement about the products they intend to buy. When people are shopping on Amazon, they can easily find customer reviews which shows other peoples views about products. Therefore, Amazon provides a reference group for its customer. Besides, Amazon also offers customers who bought this item also bought to consumers. Sometimes people just read a great book and want to read something similar, or they have to make dinner and dont have anything in mind (Wasserman 2009). By understanding this phenomenon, Amazon shows their affinity and drives new motivations for consumers. In another aspect, Amazon also uses their marketing programs to build beliefs and attitudes in customers mind. West (2005) notes Amazon has built a world-class distribution process to support its high-velocity on-line retail business. By this way, Amazon has created a great brand image to people and make them believe Amazon can offer them goods reliably and timely. To conclude, consumer behaviour aims to explore the series reflections of potential and actual buyers before, during and after purchasing actions. With the prevalence of Internet, e- commerce and the increasing requirements of consumers, online shopping has become a new medium of transaction. This article has described factors which affect consumer behaviour and illustrated it with the example of Amazon. The first factor is convenience. Amazon enables consumers to shopping online anywhere and anytime with cheaper goods where the Internet is available. Also, they can enjoy online consumer service if they have problems out of working hours. Secondly, reference groups. Potential buyers are offered to review other consumers statement about the products they intend to buy, which gives them more accurate information about the products. In addition, the idea of customers who bought this item also bought expands buyers alternatives to some extent. The last one would be beliefs and attitudes. Amazon does better in setting up good reputation and improving brand recognition among consumers. Overall, convenience, review and beliefs and attitudes are the main impacts on consumers choices. References Hahn, KH amp; Kim, J 2009, ‘The effect of of? ine brand trust and perceived internet con? dence on online shopping intention in the integrated multi-channel context’, International Journal of Retail amp; Distribution Management, vol. 37, no. 2, pp. 126-141. Hassling, A, Hodzic, S amp; Opazo, C 2007,   Ã¢â‚¬ËœConsumer Behaviour in Online Shopping’, Thesis, Kristianstad University, Sweden. Prasad, C amp; Aryasri, A 2009, ‘Determinants of shopper behaviour in e-tailing: An empirical analysis’, Paradigm, vol. 13, no. 1, pp. 73-83. Tombs, A amp; Seamons, O 2013, Foundations of Marketing, 2nd edn, Pearson Australia, Frenchs Forest. Wasserman, T 2009, ‘Why Cant Shopping Be Like Online Shopping? ’, Brandweek, vol. 50, no. 27, pp. 26-26. West, M 2005, ‘Amazon. Com Pursues Customer Satisfaction’, Chain Store Age, pp. 1-44A. Consumer Behaviour in Online Shopping In recent years, with technological advancement and invention of internet, online shopping has become popular among consumers. As the online shopping has developed into a new medium of transaction, the numbers of cyber shoppers are increasing significantly (Hasslinger, Hodzic amp; Opazo 2007). The rapid increase is illustrated by the growth in the use of internet with a change in consumer behaviour (Oppenheim amp; Ward cited in Hasslinger, Hodzic amp; Opazo 2007). According to Tombs and Seamons (2013), the definition of consumer behaviour is â€Å"the buying behaviour of final consumers which consists of individuals and households that buy goods and services for personal consumption†. The model of buyer behaviour contains 3 parts: the environment, buyer’s black box, and buyer’s responses. And there are 4 aspects of factors influencing consumer behaviour: cultural (culture, cultural group, social class); social (reference group, family, roles and status); personal (age and life cycle stage, occupation, economic situation, lifestyle, personality and self-concept); psychological (motivation, perception, learning, beliefs and attitudes). In terms of online shopping, three main factors have been found to influence consumers purchasing behaviour. Firstly, based on personal influence, it is convenient for consumers. Generally, online shopping is available and accessible for customers all day long without having to worry about opening hours. Some companies have online customer services available 24 hours. Therefore, even after business hours, customers can seek assistance if they encounter any problems or have questions about the products. As such, customers often find shop from the website that is offering convenience can reduce their psychological costs (Prasad amp; Aryasri 2009). Secondly, based on social influence, Tombs and Seamon (2013) stated that reference groups can influence a persons attitudes or behaviour. Consumers tend to purchase goods online when there is a reference group, such as reviews from other customers. Besides the information that may be retrieved online, consumers can also benefit from products’ reviews by other customers which may provide further insight and help in the decision making. Thirdly, based on psychological attribute, the beliefs and attitudes of consumers, such as brand image and trust, play an important role in influencing consumers to purchase goods online . According to Hahn and Kim (2008), consumers tend to purchase goods online from brands they trust. The following paragraph will describe these influences by using the example of Amazon. , Amazon is an American multinational electronic commerce company. It is the worlds largest online retailer with separate retail websites for 10 countries providing international shipping. As mentioned earlier, one of the factors influencing consumers to purchase online is personal influence. The lifestyles of people in recent days give consumers more opportunities to access to e-commerce, which provided a premise for success of Amazon. Moreover, according to Tombs and Seamon (2013), a person has several needs in any particular time. When these needs are strong enough, they will become motivations. Compared with bricks-and-mortar stores, Amazon offers a convenient and flexible shopping process to consumers without limitations of time and where they are. That means Amazon can meet this motivation in time, but bricks-and-mortar stores cannot. Additionally, Wasserman (2009) notes consumers like to read what other consumers statement about the products they intend to buy. When people are shopping on Amazon, they can easily find customer reviews which shows other peoples views about products. Therefore, Amazon provides a reference group for its customer. Besides, Amazon also offers customers who bought this item also bought to consumers. Sometimes people just read a great book and want to read something similar, or they have to make dinner and dont have anything in mind (Wasserman 2009). By understanding this phenomenon, Amazon shows their affinity and drives new motivations for consumers. In another aspect, Amazon also uses their marketing programs to build beliefs and attitudes in customers mind. West (2005) notes Amazon has built a world-class distribution process to support its high-velocity on-line retail business. By this way, Amazon has created a great brand image to people and make them believe Amazon can offer them goods reliably and timely. To conclude, consumer behaviour aims to explore the series reflections of potential and actual buyers before, during and after purchasing actions. With the prevalence of Internet, e- commerce and the increasing requirements f consumers, online shopping has become a new medium of transaction. This article has described factors which affect consumer behaviour and illustrated it with the example of Amazon. The first factor is convenience. Amazon enables consumers to shopping online anywhere and anytime with cheaper goods where the Internet is available. Also, they can enjoy online consumer service if they have problems out of working hours. Secondly, reference groups. Potential buyers are offered to review other consumers statement about the products they intend to buy, which gives them more accurate information about the products. In addition, the idea of customers who bought this item also bought expands buyers alternatives to some extent. The last one would be beliefs and attitudes. Amazon does better in setting up good reputation and improving brand recognition among consumers. Overall, convenience, review and beliefs and attitudes are the main impacts on consumers choices.