“A profound shift in the economy is underway - the industrial age economy is rapidly giving way to the Internet age economy.“1
Four years after the New Economy crash the Internet Economy is booming and hopes that mobile offers will further increase the speed.2 With the number of online sales for goods and services increasing every day3, online shopping - with sales growth rates outpacing traditional retailing purchases - has become one of the
fastest growing forms of shopping4. The statement above explains the reason why the term Electronic Commerce has kept both business research and business practice as occupied as barely any other term, in the last years.5 Warren D. Raisch writes about this shift in the economy that “the global development and acceptance of the Internet as the new standard for communication and commerce provides us with a powerful new global Internet-based E-Business network (...).“6
Realizing that we live in a global marketplace with international trade7 additionally pushed by the Internet, companies face a stronger competition and the need to create more value for customers than their competitors. In this context, it is important for companies to realize that, through the Internet, there is a power
shift to the customer. Furthermore, as customers will demand and tolerate only delightening buying experiences, it is a necessity to capture and analyze information about buying behavior in the 21st century business.8
When talking about E-Commerce, which is a part of Electronic Business (E-Business), describing the sale of goods and services via the Internet targeting a mass market9, the following two areas have to be differentiated: Business-to-Cus- tomer (B2C) E-Commerce, meaning the settlement of buying contracts between a
commercial seller and an end-consumer via electronic media, and Business-to-Business (B2B) E-Commerce, describing the same action but between two commercial
business partners. 10 11
In this paper, the focus lies on B2C E-Commerce as this is the most interesting area regarding marketing.12 13 Therefore, to better understand the online purchase behavior of private consumers, in the frame of the following analysis the influencing factors of shopping over the Internet are examined. Since determining the factors influencing online shopping behavior also discovers those factors hindering the usage of the Internet as a shopping platform, suggestions to improve and adjust online offers appropriately can be made.14
Table of Contents
1 Introduction
1.1 Overview of Online Shopping Trend
1.1.1 Online Shopping in Germany
1.1.2 Online Shopping in the USA
1.1.3 Online Shopping World-Wide
1.2 Objectives of the Paper
2 Online Buyer Behavior
2.1 E-Commerce Barriers
2.1.1 Consumer Concerns
2.1.2 Delivery Problems
2.1.3 Operating with Technology
2.2 E-Commerce Advantages
2.2.1 Convenience
2.2.2 Price Competitiveness
2.2.3 Wider Choice Range
2.3 Online Buyer Profile
3 A Framework for Factors Influencing Online Purchasing Behavior
3.1 Personality
3.1.1 Internet Usage
3.1.2 Attitude towards Online Shopping
3.1.3 Perceived Convenience
3.1.4 Perceived Risk
3.1.5 Perceived Trust
3.2 Purchase Situation
3.2.1 Online Shopping Experience
3.2.2 Shopping Purpose
3.2.3 Easiness of Order Procedure
3.2.4 Payment Options
3.2.5 Web Site Usability
3.3 Product Qualities
3.3.1 Price Competitiveness
3.3.2 Brand Reputation
3.3.3 Speed of Delivery
3.3.4 Choice Range
3.4 Product Categories
3.4.1 Books
3.4.2 Clothes
3.4.3 Flights
3.5 Nationality
4 Research Methodology and Data Interpretation
4.1 Data Collection
4.2 Sample
4.3 Methodology of Analysis
4.4 Research Results for German Consumers
4.4.1 Influencing Factors of Online Purchasing Behavior
4.4.1.1 Personality
4.4.1.2 Purchase Situation
4.4.1.3 Product Qualities
4.4.2 Comparison of Online and Not-Online Buyers
4.4.2.1 Differences
4.4.2.2 Similarities
4.5 Research Results for American Consumers
4.5.1 Influencing Factors of Online Purchasing Behavior
4.5.1.1 Personality
4.5.1.2 Purchase Situation
4.5.1.3 Product Qualities
4.5.2 Comparison of Online and Not-Online Buyers
4.5.2.1 Differences
4.5.2.2 Similarities
4.6 Comparison of German and American Consumers
5 Implications, Limitations and Outlook
5.1 Management Implications
5.1.1 Differences between Product Categories
5.1.2 Reduction of Uncertainty to improve Online Shopping Acceptance
5.1.2.1 Online Payment Security
5.1.2.2 Brand Reputation
5.1.2.3 Warranty Seals
5.2 Limitations
5.3 Outlook
Research Objectives and Topics
The research examines the influencing factors of online purchasing behavior by comparing German and American consumers, aiming to determine which factors explain the decision to shop online or offline across specific product categories. By identifying these factors, the study provides management insights to help retailers improve online shopping acceptance and convert Internet users into active customers.
- Analysis of E-Commerce barriers and advantages.
- Categorization of influencing factors: Personality, Purchase Situation, and Product Qualities.
- Empirical study using binary logistic regression and independent samples t-test.
- Comparative analysis of German and American consumer online behavior.
- Management implications for online retailers to address customer concerns.
Excerpt from the Book
3.1.1 Internet Usage
A behavior pattern very close to consumption is lifestyle, including information behavior, explaining why the factor Internet usage is chosen to possibly influence the decision whether products are bought online or not. It seems already proven that consumers who used the World Wide Web for a longer time period are more likely to use it for task-oriented activities like shopping, making customers´ Internet experience becoming paramount. The results by Sismeiro and Bucklin also indicate that Web site visitors´ browsing experiences are predictive of Internet buying behavior. Thus, as Robyn Greenspan states as well that an important factor of online purchasing behavior is tenure - as more experienced users, in contrast to relatively new online users, immediately think of the Internet as a shopping option - the following hypothesis is proposed:
H1: Online consumption behavior in each product category is influenced by the frequency of Internet usage.
Summary of Chapters
1 Introduction: Provides an overview of the global online shopping trend and outlines the paper's objectives regarding the consumer online buying behavior.
2 Online Buyer Behavior: Examines the theoretical background of E-Commerce barriers, advantages, and the identification of different online buyer profiles.
3 A Framework for Factors Influencing Online Purchasing Behavior: Introduces a conceptual model categorizing factors into personality, purchase situation, and product qualities, accompanied by specific research hypotheses.
4 Research Methodology and Data Interpretation: Details the empirical approach, including questionnaire design, binary logistic regression analysis, and the presentation of results for German and American consumer groups.
5 Implications, Limitations and Outlook: Discusses management strategies to enhance online shopping acceptance and reflects on the study's limitations while proposing future research directions.
Keywords
Online Shopping, E-Commerce, Consumer Behavior, B2C, Germany, USA, Internet Usage, Perceived Risk, Perceived Trust, Purchase Situation, Logistic Regression, Comparison, Online Retail, Brand Reputation, Customer Acceptance.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on comparing the online shopping behavior of German and American consumers, specifically analyzing which factors influence their decision to purchase products online versus offline.
What are the primary thematic areas covered?
The research explores three main categories of influencing factors: Personality (such as Internet usage and trust), Purchase Situation (including website usability and payment options), and Product Qualities (such as price and brand reputation).
What is the primary objective of this study?
The study aims to identify the specific factors that explain why consumers decide to buy products online and whether these influencing factors differ significantly between German and American consumers.
Which scientific method is employed for the analysis?
The author uses binary logistic regression to analyze the influencing factors and an independent samples t-test to identify significant differences between German and American consumer groups.
What is addressed in the main part of the work?
The main section establishes a theoretical framework for online purchasing behavior, details the methodology used for data collection and analysis, and presents the empirical research results for both countries across three specific product categories: books, clothes, and flights.
Which keywords characterize this paper?
Key terms include Online Shopping, E-Commerce, Consumer Behavior, B2C, Internet Usage, Perceived Risk, Perceived Trust, and Comparative Analysis of consumer data.
Why was the product category "flights" selected for this analysis?
Flights were selected as a product category because they represent a prime example of high-speed, 24-hour convenient service that is unique to online platforms, providing a contrast to physical goods like books or clothes.
What specific management implications are derived from the study?
The study suggests that managers should prioritize website usability, provide secure payment options, and utilize warranty seals to mitigate perceived risk and build trust, particularly for product categories like clothes where consumer reluctance is higher.
- Quote paper
- MBA, LL.M, Diplom-Kauffrau Silke Kühn (Author), 2004, A Comparison of Online Shopping Behavior of American and German Consumers, Munich, GRIN Verlag, https://www.grin.com/document/141245
