This paper attempts to gain a better understanding of consumer behavior on Internet purchases. To address this objective a secondary literature survey was conducted. In the first part, the paper focuses on characteristics of Internet consumers through briefly exploring online demographics and activities, and then through classifying several shopper types. Second, the established five stages model of the consumer decision process is examined in the online shopping context. Third, potential drivers of Internet shopping are derived, focusing on benefits of online shopping, Web loyalty and Web site design quality. The fourth part deals with acceptance barriers to Internet shopping, in particular with general barriers, security issues and privacy concerns. Implications for online marketers are derived after each part of the paper. Finally, several conclusions, a summary of implications and further notes are presented at the end.
Table of Contents
1. INTRODUCTION
1.1. Motivation and focus
1.2. Research methodology
2. CHARACTERISTICS OF INTERNET CONSUMERS
2.1. The online market
2.2. Current demographics
2.3. Online activities
2.4. Shopper types/segmentation approaches
2.4.1. Motivation-based segmentation
2.4.2. Benefit-oriented segmentation
2.4.3. Adoption-based segmentation
2.5. Implications
3. CONSUMER DECISION MAKING ON THE INTERNET
3.1. Problem recognition
3.2. Information search
3.2.1. Information quality aspects
3.2.2. Price search behavior patterns
3.3. Evaluation of alternatives
3.3.1. Intelligent shopping agents
3.3.2. Virtual communities
3.4. Choice/purchase stage
3.5. Post purchase stage
3.6. Implications
4. POTENTIAL DRIVERS OF INTERNET SHOPPING
4.1. Benefits of online shopping
4.2. Satisfaction and Web brand loyalty
4.3. Site design quality
4.3.1. Product fit and media richness
4.3.2. Atmospheric aspects
4.4. Implications
5. ACCEPTANCE BARRIERS TO INTERNET SHOPPING
5.1. General barriers
5.2. Security issues
5.3. Privacy issues
5.3.1. Privacy perceptions and consumer attitudes
5.3.2. Information practices and policies of Web sites
5.4. Reducing risk perception
5.5. Implications
6. CONCLUSION
6.1. Final implications
6.2. Further notes
Research Objective and Focus
This paper aims to provide a comprehensive analysis of consumer behavior within the context of online shopping. It explores current shopper characteristics, the digital application of the traditional consumer decision process, and identifies the key factors that drive online purchases as well as the significant barriers that hinder e-commerce adoption.
- Analysis of online consumer demographics and segmentation models.
- Examination of the consumer decision process in a virtual environment.
- Investigation into the primary drivers of online shopping, such as convenience and web design quality.
- Evaluation of acceptance barriers, specifically regarding security, privacy, and risk perception.
- Development of strategic implications for online marketers to optimize customer retention and satisfaction.
Excerpt from the Book
Consumer Decision Making on the Internet
In the traditional marketplace the model is widely examined and accepted. However, the model is yet applied very little to the new circumstances of the online market. Understanding the consumer decision process on the Internet is crucial in meeting customer expectations and deliver value to the customer in order to create a competitive advantage. Buttler and Peppard (1998) addressed this issue by comparing this consumer behavior model in the traditional marketplace with the virtual marketspace. For this purpose they examined the extensive problem solving situation in the first instance, due to the lack of experience in online shopping and the perceived risks in payment security for most of the potential customers. With more experience, however, many purchases can be categorized as limited problem solving approaches, which simplifies some procedures along the stages. Habits and preferences of Websites will be established, leading to specific consumer expectations.
This chapter investigates each of the traditional decision making stages of consumers in the context of the Internet in a separate part. Furthermore, specific issues falling into these stages are treated in sub-chapters in order to give an deeper insight into the consumer decision process on the Internet.
Summary of Chapters
1. INTRODUCTION: Provides an overview of the research scope, the importance of understanding consumer behavior in the digital economy, and the methodology employed for this study.
2. CHARACTERISTICS OF INTERNET CONSUMERS: Details the demographics and online activities of internet users and introduces various segmentation approaches, such as motivation-based and benefit-oriented strategies.
3. CONSUMER DECISION MAKING ON THE INTERNET: Analyzes the classical five-stage decision model applied to an online context, covering areas from problem recognition to post-purchase behavior.
4. POTENTIAL DRIVERS OF INTERNET SHOPPING: Examines the primary motivations for online shopping, emphasizing the importance of site design, web loyalty, and the benefits of online consumer experiences.
5. ACCEPTANCE BARRIERS TO INTERNET SHOPPING: Addresses the critical concerns preventing adoption, including security risks, privacy invasion, and technical barriers, and offers strategies for risk reduction.
6. CONCLUSION: Summarizes the key findings of the research and presents consolidated implications for online marketers to improve their digital strategy.
Keywords
Consumer behavior, Internet shopping, E-commerce, Online marketing, Consumer profiles, Decision process, Web design, Customer loyalty, Privacy concerns, Security issues, Market segmentation, Virtual environment, Risk perception, Online shoppers, Digital strategy.
Frequently Asked Questions
What is the core focus of this research?
The research provides an in-depth analysis of consumer behavior specifically within the context of online shopping, examining why consumers buy online and how their decision-making processes differ from traditional commerce.
What are the central themes covered in the paper?
The primary themes include the identification of online shopper profiles, the application of decision-making models to the web, the drivers of e-commerce usage, and the significant barriers such as privacy and security concerns that prevent growth.
What is the primary objective of the work?
The objective is to sketch a detailed picture of current online shopper characteristics and decision-making processes, ultimately providing actionable implications for marketers to enhance the digital shopping experience.
Which scientific methodologies were utilized?
The paper is a secondary literature survey that synthesizes insights from recent academic articles, empirical industry surveys, and established books in the fields of consumer behavior and industrial psychology.
What topics are discussed in the main body?
The main body investigates the digital customer journey through the five-stage decision model, evaluates site design quality and product-fit models, and analyzes the impact of privacy practices and security risks on consumer behavior.
Which keywords best characterize this work?
The paper is characterized by terms such as E-commerce, consumer behavior, online shopping drivers, web loyalty, privacy, and user experience design.
How does the author characterize "Goal-oriented" versus "Experiential" shoppers?
Goal-oriented shoppers are driven by efficiency, seeking specific products quickly with minimal distraction, whereas experiential shoppers are motivated by the fun of the shopping process, often browsing for recreation.
What role do "intelligent shopping agents" (shopbots) play?
Shopbots are described as tools that help consumers compare product attributes and prices, reducing the cognitive search burden for the buyer, though their impact on retailer loyalty and brand strategy varies.
- Quote paper
- Daniel Springer (Author), 2002, Buying on the Web? Isn't that dangerous? - Consumer Behaviour on Internet Shopping: Consumer Profiles, Decision Processes, Drivers and Barriers in the Virtual Environment -, Munich, GRIN Verlag, https://www.grin.com/document/9211
