Electronic commerce (short: e-commerce) is becoming more and more important in our world. In the beginning, only start-up companies had established online business, but nowadays, even the old economy has realized that e-commerce can be profitable and can make a company operate more efficiently. However, the reasons for or against going into e-commerce should not be discussed in this paper. Many companies have started e-commerce and still today many others try to start online business successfully. As a result, e-commerce has quite a big impact on companies and their customers. This paper shall work out theoretical and practical insights into the behaviour of online consumers.
Therefore, in chapter 2, definitions of e-commerce and consumers’ behaviour are presented and examined. After I have given some definitions to set the framework of this paper, I’d like to discuss the impact of typical internet characteristics on the behaviour of internet users. The focus of the practical approach (chapter 3) is directed at the present status quo of e-commerce in society. From consumers’ point of view advantages and disadvantages of e-commerce were analysed and the following questions were discussed: How many people buy online, who are these people and what are they buying most? Why do some segments not buy online? In order to answer these questions a brief look at several e-commerce studies is necessary. Chapter 4 repeats the main conclusions of this paper.
Table of Contents
1 Introduction
2 Theoretical Approach
2.1 Definition of E-Commerce & Consumer Behaviour
2.2 Internet Characteristics
3 The Status Quo of E-Commerce
3.1 A General Overview
3.2 E-Commerce from Consumers’ Point of View
3.2.1 In General
3.2.2 Opportunities and Risks
3.2.3 Statistical Data
4 Closing Remarks
Objectives and Core Topics
This paper provides theoretical and practical insights into the behaviour of online consumers, examining the impact of internet characteristics on user engagement and the status quo of the e-commerce market in society.
- Definitions and theoretical frameworks of e-commerce and consumer behaviour.
- Analysis of internet characteristics such as availability, interactivity, and market transparency.
- Evaluation of opportunities and risks from the consumer's perspective.
- Examination of statistical data regarding online shopping trends, demographics, and product preferences.
- Assessment of success factors for online retailers, including usability and service quality.
Excerpt from the Book
3.2.2 Opportunities and Risks
While in the conventional trade the "Top Down" model "producer-dealer-consumer" prevails, the electronic commerce model changes this strategy into a "Bottom Up" model "customer-dealer-producer" (see figure 4). This means that the customer gets the important factor with substantially more power, so that the seller market becomes finally a consumer market. The customer takes not only the role of its own salesman, but also the co-producer of the manufacturer with the result that a new balance of power develops.
The big range of products and/or their easy accessibility as well as the entertainment factor of the internet represent reasons for the consumer to buy products online. Online shopping activities lead to a decrease in transaction costs, because of the loss of purchase stress due to overcrowded department stores or parking space search, but e-commerce also leads to another kind of purchase stress. This stress occurs, if the internet user is not so familiar with the subject and with the operating system or if an information overloading of the "advanced" user occurs.
Because of the unlimited availability of the internet, the closing time of the shops and the distance to the shop become irrelevant. However time saving effects reached by the online order can be destroyed by a delayed distribution. Because of this problem companies closed strategic alliances, whereby online orders are merged directly into the logistics system of a parcel service, with the result of a faster distribution and more satisfied consumers.
Summary of Chapters
1 Introduction: This chapter outlines the business environment changes caused by the internet and establishes the research focus on online consumer behaviour.
2 Theoretical Approach: Provides definitions for e-commerce and consumer behaviour while discussing how internet characteristics shape user interaction and market dynamics.
3 The Status Quo of E-Commerce: Reviews current market developments, consumer perspectives on benefits and risks, and provides statistical insights into purchasing behaviour.
4 Closing Remarks: Summarizes the key findings, including the shifting power balance toward consumers and the ongoing growth trends of the e-commerce sector.
Keywords
E-commerce, Consumer Behaviour, Internet Characteristics, Online Shopping, B2C, Market Transparency, Transaction Costs, Digital Economy, Consumer Power, Statistical Data, Online Marketing, Logistics, Retail Trade, Purchasing Probability, Internet Usage.
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines the theoretical and practical aspects of consumer behaviour within the B2C e-commerce sector, focusing on how internet characteristics influence shopping habits.
What are the core thematic fields covered?
The core themes include e-commerce definitions, the impact of internet technology on market structures, consumer opportunities and risks, and statistical analysis of German online shopping trends.
What is the central research objective?
The goal is to understand how online consumers behave, what motivates them, and what barriers exist regarding e-commerce adoption and sustained usage.
Which scientific method is utilized?
The paper employs a qualitative analysis approach, synthesizing existing e-commerce studies, market data, and theoretical frameworks to draw conclusions on consumer trends.
What topics are discussed in the main body?
The main body covers definitions of e-commerce, the specific attributes of the internet (availability, interactivity), consumer-centric advantages and disadvantages, and empirical data on online activity.
How would you characterize the work with keywords?
The work is characterized by terms like e-commerce, consumer behaviour, market transparency, B2C segment, and digital market growth.
How does the "Bottom Up" model differ from conventional trade?
In conventional "Top Down" models, the path is producer-dealer-consumer; in the "Bottom Up" e-commerce model, the process starts with the customer, granting them significantly more power.
What role do logistic services play in e-commerce success?
Logistic services are identified as a crucial success factor, as delayed distribution can negate the time-saving benefits of online shopping, impacting customer satisfaction.
- Quote paper
- Kai Eickhof (Author), 2005, The Status Quo of E-Commerce. A Theoretical and Practical Approach to Consumer-Bahaviour in E-Commerce, Munich, GRIN Verlag, https://www.grin.com/document/45347
