How E Commerce Is Changing Consumer Buying Behaviour Marketing Essay

How E Commerce Is Changing Consumer Buying Behaviour Marketing EssayIn Electronic Commerce, online purchasing is the outgrowth consumers go through when they decide to shop on the net profit. Therefore, the internet has developed to a highly competitive market, where the competition over the consumer is fierce. In order to brace an impact on and retain consumers, in a competitive market, Constantinides (2004) stated that the first step is to identify certain influencing aspects when purchasing online, these send word be regarded as factors.The purpose of the re hunt club is primarily to identify and get insight into what main(pre noinal) factors the online consumer takes into consideration when purchasing books online, as books be the most comm and bought product on the internet (Arbeitsgemeinschaft Online-Forschung e.V. AGOF e.V., 2007).Concise Review of the Related LiteratureThis research suggests that consumers attitude toward net shop first depends on the direct effects of relevant online shopping features (Davis, 1993). The core constructs of our framework are adapted from the Technology Acceptance Model (TAM) by Davis (1989), an influential research model in the in diversityation systems field. Although this model is limitedally tailored to understand the espousal of computer-based technologies on the job or in the workplace, it has proven to be suitable as a theoretical foundation for the adoption of e-commerce as well (Chen et al., 2002). Therefore, the TAM structures are employed as a foundation for our research framework.Online shopping features can be either consumers perceptions of functional and functional dimensions, like quench of use and usefulness, or their perceptions of emotional and hedonic dimensions like enjoyment (Menon and Kahn, 2002). The internet has developed into a new distribution channel (Hollensen, 2004) and the exploitation of this channel, e-commerce, has been set by Smith and Rupp (2003) to be the most significan t contribution of the information revolution. The design of internet users is constantly increase which withal signifies that online purchasing is increasing (Joines, et al., 2003). The rapid increase is explained by the growth in the use of broadband technology combined with a change in consumer behaviour (Oppenheim Ward, 2006). Using the internet to shop online has become one of the primary reasons to use the internet, combined with searching for products and finding information about them (Joines et al., 2003). Smith and Rupp (2003) also state that the consumers have never had access to so many suppliers and product/service opinions.By integrating Fishbeins attitudinal theoretical model (Fishbein 1967) and the expectation-confirmation model (Oliver 1980), we attempt to associate the three elements together and form a base model Model of Intention, Adoption, and Continuance (MIAC) (as depicted in systema skeletale 2) for the development of an online consumer behaviour framewo rk.(Purpose) (Implementation) (Persistence)ConsumerOnlinePurchaseConsumerOnlineRepurchaseConsumerOnlinePurchaseIntentionFigure 2 Model of Purpose, Implementation, and PersistenceFishbeins attitudinal model has been widely used in the marketing context (Lilien et al 1992) and this paradigm provides researchers with a useful lens for examining the factors explaining consumer purchasing intention and adoption. According to this model, behaviour is predominantly determined by intention. Other factors like attitudes, subjective norms, and perceived behavioural control are also sh experience to be related to an appropriate set of salient behavioural, normative, and control beliefs about the behaviour. However, Fishbeins model stops at the adoption level and does not capture other pregnant factors that explain and predict consumer continuance behaviour (repurchase).The expectation-confirmation model (Oliver 1980), on the other overtake, centrees on the post-purchase behaviour. It is a w idely used model in the consumer behaviour literature, specially in explaining consumer satisfaction and repeat purchase. Satisfaction is the central notion of this model and it is formed by the gap between expectation and perceived performance (Oliver 1980). The expectation-confirmation theory suggests that if the perceived performance meets ones expectation, confirmation is formed and consumers are satisfied. Bhattacherjee (2001) stated that satisfied users are to a greater extent likely to continue the IS use. Thus, we point that adoption and continuance are connected to each other through several mediating and moderating factors such as trust and satisfaction.The research articles appear in a variety of journals and concourse cash in ones chipsings in the fields of information systems, marketing, management, and psychology. A limited review of these articles indicates that researchers mostly draw theories from classical consumer behaviour research, such as behavioural lear ning (Skinner, 1938), mortalality research (Folkes 1988), information processing (Bettman 1979), and attitude models (Fishbein 1967).There are still significant differences between offline and online consumer behaviour that warrant a distinguishing conceptualization. For example, Vijayasarathy (2001) integrated the web specific factors (online shopping aid) into the theory of reasoned action (TRA) to better explain consumer online shopping behaviour. Song and Zahedi (2001) built on the model of the theory of planned behaviour (TPB) and examined the effects of website design on the adoption of meshing shopping.Donal Rogan (2007) explains the relationship between consumer behaviour and marketing strategy and states that strategy is about increasing the probability and frequency of emptor behaviour. Requirements for succeeding in doing this are to know the consumer and understand the consumers needs and wants.Chisnall (1995) points out that human needs and motives are inextricably linked and that the relationship between them is so very close that it becomes difficult to identify the precise difference which may characterize them. Buyers characteristics are important theories from Kotler and Armstrong (2007) and it explains the way that the consumer interprets and receives stimuli from advertisements. The decisions of consumers are influenced by a number of individual characteristics that are linked to the consumers specific needs. (Kotler Armstrong, 2007)A review of online consumer research reveals that the scope of published studies is rather broad, the studies appear relatively fragmented with contradictory results, and only very few prior studies (e.g., Jarvenpaa and Todd 1996, Koufaris et al 2001) have attempted to systematically review and develop a framework for the research of this important research area.Aims and Objectives of body of workTo develop a valid and reliable measure of motivations and costs associated with online information search and purchase behaviourTo provide a systematic and exhaustive review of online consumer behaviour researchTo test the ability of the measure to identify the impact that specific motivations and costs have on apparel search and purchase decisions among Internet shoppers worldwideTo identify important constructs that are specific to the context of online purchasingto propose an integrated framework that enhances our understanding of the underlying driving factors of online consumer behaviourTo gauge the potential of the Internet as an efficient and effective medium to disseminate information to enhance brand/product awareness, evaluations, and purchase intentions in the global securities industryTo provide directions for future research in this area. interrogation QuestionsHow does the level of computer and Internet develop of the target assembly relate to the level of Internet purchases?What main factors affect the online consumer when considering and making a purchase over the intern et?How do these factors influence the consumer when purchasing books online?What kind of segments can be found within the identified consumers when purchasing books online?What is the connection with the identified factors and consumer segment groups?A Structured Research ApproachPrior literature provides us with a rich foundation on which to build a research framework for the study of online consumer behaviour. As suggested by Douglas et al. (1994), strong theoretical and conceptual frameworks can be developed through an desegregation of constructs from different research traditions and disciplines. In the current study, we review the prior literature of online consumer behaviour and analyze the theories and the underpinning factors.A systematic and structured approach in search and review is strongly recommended in writing sound IS literature reviews (Webster and Watson 2002). In this study, we conducted an exhaustive and systematic electronic search using ProQuest, Social Scienc e cite Index, IEEE Xplore, and other bibliographic sources with keywords such as online shopping, Internet shopping and online consumer purchasing behaviour. In addition to the search for referred journal articles, we included three IS-related conference proceedings (AMCIS, HICSS, ICIS) in our literature search and analysis.Research MethodologyTo answer the purpose of the thesis, both primary and secondary selective information had to be collected. Primary data is data collected especially to answer the purpose and research questions of the current research. This data must be gathered by the researcher of the research at hand and can be done by observation, interviews or questionnaires. Secondary data is data that has been collected earlier, to fulfil the purpose of some other research. This data can be gathered from books, articles, reports and many others sources. (Saunders et al., 2007)Direct ObservationObservation is a research technique that is often implicit in the data-gathe ring approach and observation is something we cannot soften to do as people, we are all expert observers (Hackley, 2003). Furthermore, participant observation will be chosen as it puts the researcher where the action is enabling them to experience the lives of informants, one option is to observe consumers behaviour and their purchase decision in online store (Meiselman et al., 2000). An observational approach provides a clearer representation of the decision process that consumers proceed through rather than the consumers perceptions of that process (Douglas and Wind, 1978), thus providing the researcher with the ability to uncover unconscious consumer actions.SurveyThe greatest use of questionnaire is made by survey as strategy. However, both experiment and case studies research strategies can make use of these techniques (Oppenheim, 1992). Some authors reserve it exclusively for surveys where the person answering the question actually records their own answers and other authors use it as a more general term to inclusively for survey interview hat administered either face to face or by telephone. (Kervin 1999)In addition, questionnaire can be used as a general term to include all techniques of data collection in which each person is asked to respond to the same set of questions in a predetermined order. (DeVaus, 1996)InterviewAn interview is a purposeful discussion between two or more people (Kahn and Cannel 1957). The use of interviews can help to gather valid and reliable data that relevant to the research questions and objectives.SamplingSampling techniques provides arrange of methods that enable to conquer the amount of data need to collect by considering only data from a sub groups rather than all possible cases or elements. Sampling also save times and give over view of population. Researcher Kervin (1999) argues that using sampling enables a higher overall accuracy than a census.Methods of Data depth psychologyDuring the dissertation both the quanti tative and qualitative data will require analysis. In order to analyze the data collected through the survey and the focus group, several strategies were used. The aim was to give a descriptive analysis of the consumer behaviour in online shopping. The tables, charts and pie charts were interpreted as made up the foundation for the focus group discussion.The method of analysis to be followed is that proposed by Dey, Miles and HubermanComprehend and manage it.Merge related data drawn from different transcript and notes.Identify key themes or pattern from it for further exploration.Develop and / or test hypotheses based on these apparent patterns or relationships.Draw and verify conclusions.(Dey, 1993 Miles and Huberman, 1994)Moral Issue of ResearchConsumers were for the first time observed without interruption, allowing their natural behaviour will be recorded. Only once they complete their actual purchase decision, the researcher will approach them. Those shoppers who will picked up a product to purchase were intercepted as they walk away from the cabinet and will be asked to answer a few short questions regarding their purchase choice.Research TimetableWeeks1234567891011121314Internet ResearchLiterature ReviewResearch DesignMethodologyData SourcesData CollectionData digestWriting up Draft redactionFinal DocumentBinding DocumentReferencesArbeitsgemeinschaft Online-Forschung e.V. AGOF e.V., 2007.Bettman, J. R. (1979) An information Processing Theory of Consumer Choice, Reading, Mass. Addison-Wesley.Bhattacherjee, A. (2001) Understanding instruction Systems Continuance An Expectation Confirmation Model, MIS Quarterly, vol. 25, no. 3, pp. 351-370.Chen, L., Gillenson, M.L. and Sherrell, D.L. (2002), Enticing online consumers an across-the-board technology acceptance perspective, Information counsel, Vol. 39 No. 8, pp. 705-19.Chisnall, M. P. (1995) Consumer Behaviour, 3rd Edition, Maidenhead, McGraw Hill Companies.Constantinides, E. 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