Professional Communication and Consumer Behave in Online Shopping

Question: How do Consumer Behave in Online Shopping? Answer: Introduction Internet plays a significant role in the regular lives of people. Online or internet shopping has been widely accepted by the people globally as it provides them with more information and satisfaction. Online shopping behaviour consists of buying process of products and services on the internet. A consumer is no longer bound by locations and time as they seek convenience to find or shop things online (Cheng and Huang 2013). This report aims to analyse the behaviour of consumers while online shopping. The behaviour is supported by several theories and frameworks. The report also focuses on the challenges of problems in relation to online consumer behaviour as not everyone prefers buying products through the internet. Recommendations are provided to enhance the online shopping behaviour of individuals so that the people can adapt well to the online shopping and shift from the traditional to the new paradigm (Hong 2015). Interpretation and Analysis of Literature The consumers shopping preferences have taken a huge turn in the marketing world. The behaviour of consumers while shopping is influenced by three Rs- research, recommendations and returns. Firstly, in case of research, the consumers tend to access product information. The consumers have inclined their interest towards buying electronics, home furnishings and automotive online as they are available at competitive or cheaper prices online (Hong 2015). Secondly, recommendations and reviews help the customers in narrowing their choices. Certain consumers find it more comfortable when they read reviews of products and services from experts or uses. Personal recommendations from users guide the consumers in purchasing products online and encourage them to make a purchase. Lastly, returns are a normal part of the shopping process that has a negative as well as positive influence on the customers. If the consumers do not like the products, having a choice of returning products can enable th e purchase decision. However, the return feature may also build a perception among the consumers that the products might be dissatisfying and if they must purchase the products online (Rose and Dhandayudham 2014). The Theory of Planned Behaviour According to the theory of planned behaviour, the individuals performance or behaviour is characterized by their intent to perform such behaviour. This theory is an extension of the theory of reasoned action in which the individuals have control over their behaviour. The theory of planned behaviour is a useful framework for explaining internet purchasing. There is direct relationship between perceived behavioural control and behaviour is considered strong and positive. The studies by Cheng and Huang (2013) have also used the theory of planned behaviour and theory of reasoned action to explain the intent towards internet purchasing. Benefits of Online Shopping Internet has revolutionized the way people shop. People prefer shopping online as it adds to convenience and saves the customers from shopping online. Cheaper prices and better deals are available online so the customers tend to research products online. The variety and offers while shopping online are vibrant that helps consumers a wide variety to choose. Prices can be compared for different brands easily and the customers do not have to visit different places to know the prices. The online shopping is less compulsive in nature and the customers buy only the products they require (Wu et al. 2014). Drawbacks of Online Shopping Privacy has been considered as one of the key reasons keeping the consumers from making online purchase. According to a study conducted by Wu (2013), privacy is one of the core reasons that dwindles trust of the consumers. The consumers doubt online purchase as they think that the information entered might be used by the companies to send them unwanted information. The studies have found a relationship between privacy concerns and trust in e-commerce related to privacy (Rose and Dhandayudham 2014). According to the studies conducted by Pappas (2016), many consumers do not trust web providers as they might trap personal information while interacting with them. As per the views of many consumers, internet shopping is perceived as ore risky than print catalogue shopping as the online companies may deceive the consumers. The recent studies established a significant correlation between online transactions and customer attitudes (Rose and Dhandayudham 2014). Factors Influencing Online Consumers Behaviour As mentioned by Wen (2013), uncertainty and consequence of a particular purchase are the two components of perceived risk. The five factors explained as under are found to be influencing the consumer behaviour in online purchase- Financial risk- According to a study conducted by Ashraf, Thongpapanl and Auh (2014), the Technology Acceptance Model examined different factors influencing online consumer behaviour. The study indicates the influence of financial risk, usefulness, convenience and attitude towards shopping. The consumers may not purchase products with heavy investment as there is high financial risk. The consumers are likely to purchase apparels or fast moving consumer goods as it has less investment (Giovanis 2011). Product performance risk- According to a study conducted by Sinha and Singh (2014) in Jordan, the relationship between social risk and time is insignificant. Product risk involves poor performance of a specific product or brand that does not meet the customer expectations. Due to inefficiency of the consumers, good quality products or brands in online stores may not be met. The researchers Sinha and Singh (2014) examined the skills of consumers to assess a particular brand or product. The features, colours, availability and other aspects can increase the product performance risk (Rose and Dhandayudham 2014). Delivery risk- As suggested by Hong (2015), product delivery risk has a positive effect if the consumers place an order with the online merchant. Therefore, to minimize product delivery risk, customers must approach the trustworthy online sellers. The customers feel safe and secure in terms of product delivery when they place order from reliable vendors. According to the study conducted by Chiu et al. (2012), the customers had less intention to shop as their might be risk in product delivery. Trust and security factor- Ghazali et al. (2015) states that trust is a psychological factor like relating to the amount of protection of website and keeping information of customers safe. It is argued that trust and security has a significant influence on behaviour of online customers. Certain customers prefer going to supermarkets and retail stores to purchase products as they do not rely on revealing financial information on the website. Breach of customer trust has a negative influence on online shopping behaviour (Rose and Dhandayudham 2014). Website design factor- Lee et al. (2016) examines that website design is one of the factors influencing online consumer behaviour. The study revealed that the consumers look for a user-friendly website that would guide them in online shopping. It was found that the categorization, colour combinations, font and designs used in the website influenced the online consumer needs positively. It is argued that if a website is easy to use, and it is simple to navigate, convenient to load webpage, and using it comfortably, there shall be greater frequency of using the website (Rose and Dhandayudham 2014). Conclusion Internet or online shopping is the latest model that can persuade the customers and retain them. A consumer is no longer bound by locations and time as they seek convenience to find or shop things online. The consumers have inclined their interest towards buying electronics, home furnishings and automotive online as they are available at competitive or cheaper prices online. If the consumers do not like the products, having a choice of returning products can enable the purchase decision. The theory of planned behaviour is a useful framework for explaining internet purchasing. Prices can be compared for different brands easily and the customers do not have to visit different places to know the prices. The consumers doubt online purchase as they think that the information entered might be used by the companies to send them unwanted information. The recent studies established a significant correlation between online transactions and customer attitudes. The consumers doubt online purchas e as they think that the information entered might be used by the companies to send them unwanted information. Recommendations Based on the above analysis and discussion, it is recommended that the consumers online behaviour can be influenced. Effective marketing strategies can be enhanced to target the appropriate consumer groups. The personal characteristics such as age, gender, life style, income status and education can influence the behaviour. Motivating factors such as convenience, availability of products and services, cost efficiency and time efficiency may be enhanced. The website must be secure to gain the trustworthiness of the customers. The willingness to buy or patronize online store can be enhanced through ensuring transaction security. The companies can also minimize the risk concern by carrying brand name such as Amazon. The brand name of the product can help improve the trust of the website. Integrated mechanism can be used to build trust in safeguarding the personal information of customers and avoiding misuse of credit card mode of payments. References Ashraf, A., Thongpapanl, N. and Auh, S., 2014. The Application of the Technology Acceptance Model Under Different Cultural Contexts: The Case of Online Shopping Adoption.Journal of International Marketing, 22(3), pp.68-93. Cheng, H. and Huang, S., 2013. Exploring antecedents and consequence of online group-buying intention: An extended perspective on theory of planned behavior.International Journal of Information Management, 33(1), pp.185-198. Chiu, C., Wang, E., Fang, Y. and Huang, H., 2012. 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