Online Shopping Buyer Behaviour in Fashion industry - Dissertation Example

Online Shopping Buyer Behaviour in Fashion Industry College: Table of Contents Introduction 3 Literature Review 4 Differences between Online and Traditional Shopping in Fashion Preferences 4 Modern Trends in Online Fashion Shopping 9 Reasons for the Growth of Online Fashion Shopping 10 Decision Making Process of Online Buyers of Fashion 14 Conclusion 15 References 17 Online Shopping Buyer Behaviour in Fashion Industry Introduction Reports have indicated that increasing number of adults in the United Kingdom are using mobile and internet commerce as part of their buying behavior. This means that brands and retailers are taking advantage of mobile commerce and social media to ensure that they increase their sales volume. Although many shoppers have not started using this new concept in their buying, the number of people who have started using mobile commerce and internet for shopping have been increasing constantly over the last few years (McKie, 2001, p. 55). This can be attributed to a number of factors including the fact that internet usage has been increasing in the United Kingdom and many people have identified the benefits that are accrued from shopping online. One of the industries that have benefitted immensely from online shopping is the fashion industry. This can be attributed to the fact that the fashion companies have been vigorously encompassing the internet technology in their marketing strategies (Sender, 2011, p. 1). Objectives The objectives of this research will be to understand why online fashion shopping has been slow in picking up and why the statistics indicate that it is possible for the fashion industry to use the internet marketplace to thrive. This research will look into the differences between the traditional retail marketing and online shopping in the fashion industry. Research Questions What are the indications that fashion buyers behavior will favor online fashion retailers? What are the main differences between traditional fashion retailers and online fashion retailers? What does the decision making process of fashion buyers entail? Why does online fashion shopping been seen as more advantageous to fashion buyers than the traditional fashion shopping? What are the buyer preferences that will boost online fashion buying? Literature Review Differences between Online and Traditional Shopping in Fashion Preferences The main differences between the traditional and online shopping preferences for fashion products include display, expense, location, communication and technology. As far as display is concerned, the traditional fashion shopping offered the buyers an opportunity to touch and handle fashion products physically when they are interested in something. This had the benefit of the buyer ensuring that the product is of high quality and that it is durable. This was very beneficial to the fashion product buyers (Shields, 2001, p. 78). On the other hand, online shopping for fashion products does not offer the purchaser a chance of getting into physical contact with the products. Instead, the buyer will have to be contented with the graphical displays, pictures and the text descriptions for the products. This has the effect of ensuring that prospective customers would rather buy from the traditional fashion retailers rather than the modern online fashion retailer (Coulter, 2004, p. 9). Expenses are also major determinants and number of factors exist that fashion product retailers need to put into mind. One of the factors is that while the traditional retailers must look for viable premises that will attract customers, the online retailers do not have to look for premises. Hence, the traditional retailers will have to incur many expenses for setting up the businesses (Zittrain, 2007, p. 36). This eventually means that traditional retailers will have to sell their products at higher prices because of the higher costs of starting up the business. This means that the fashion products customers who will be price conscious will prefer to buy products from online retailers rather than buying the products from traditional retailers (McCue, 2004, p. 52). The other factor is location and it is important to note that while traditional retailers will force the fashion product customers to go to their geographical locations, the online retailers have an edge because the customers will not need to go to the geographical location for the products. The online retailer has an advantage because the convenience of not travelling means that more customers will be willing to buy from the online retailer (Rapoza, 2001, p. 49). Another important aspect is the fact that the online retailer can serve clientele from different geographical location so long as they customers have access to the internet. This means that the online retailer has an added advantage because many clients will prefer not to travel over long distances for their products because they can simply order their products with a few clicks of the mouse (Mann, 2008, p. 83). Communication is also another important aspect that needs to be considered by both the retailers and the clients. While it can be very simple to communicate with a customer face to face on the part of the traditional retailer, it can be very complicated to communicate with a customer over the internet. Online shopping can prove to be very expensive for both the customer and the client because of the communication charges where the customer will have to interact with the retailer over a phone (Memp, 2006, p. 49). However, with the introduction of various technologies, it is also simple for the customer to communicate with the retailer over internet based chat and free telephone calls offered by skype. Eventually, in the case where the customer needs a detailed description of the product, they will have to choose the traditional retail over the online retailer (Knapp, 2003, p. 26). It is also important to consider technology that is needed to run each type of fashion retail and the level of the technology that the customers are comfortable working with. Online fashion retailers need to use significant technology whereas the traditional retailers do not need use technology and they can run their businesses with minimum technology application. On the other hand, customers derive some pride from using the available technology especially the target market population for fashion products. This means that the online retailer has an advantage because the customer will most likely choose the kind of business that applies the latest technology in their business (Karake-Shalhoub, 2002, p. 59). Whether consumers are buying through the traditional purchasing methods or through online, the consumers purchase with a goal of achieving a specific value. This indicates that for a retailer to attract a significant portion of the market in the internet, it is imperative for the retailer to advertise the fact that the retailer is in a position to deliver the preferred value to the prospective clients. There are two types of values that are commonly pursued by buyers and they are hedonic and utilitarian values. These two values are very important in analyzing the consumer’s preference for either the traditional retailers or the online retailers and also analyzing why the consumers are intending to purchase whether through the traditional retailers or online retailers (Levinsohn, 2001, p. 36). Product types play an important role determining the purchasing behavior of the consumers. There are different categories of products and they include the experience and choice categories. Whether a product is a choice or experience product is solely determined by an individual’s evaluation of that particular product. Product types have a profound influence on the perceived values of the customers and the intentions of the customers when they purchase goods online (Geber, 2005, p. 109). One of the factors that have led to increasing online buying is out phasing the traditional methods of purchasing is because the market size of online buying is developing at a faster rate while the traditional purchasing behavior is declining. This means that all the industries that online buying is applicable have concentrated their efforts on online marketing and not in the traditional marketing (Schneider, 2010, p. 75). There is also the fact that many people have identified the advantages of online buying and this has played an important role in expanding the market. The same can be said of the fashion industry whereby the sales of online clothing and footwear have registered a constant growing in the year 2011. However, for this growth to be sustained, the retailers and brands will have to deal better with the barriers that have been inhibiting online shopping and put off customers who make actual purchases. Although the fashion industry has been slower in embracing online shopping, the industry is picking up a good pace (Sender, 2011, p. 1). Methodology This research paper will use both primary and secondary sources. Primary sources will encompass getting first hand information from both the buyers and the retailers. It is also important to note that marketing professionals will also be involved in the study. The primary sources will include existing literature, online journals and e-commerce magazines. Secondary data will include both qualitative and quantitative research methods. The quantitative research methods will include surveys that will be distributed to both the retailers and the buyers. The quantitative research methods will include the use of focus groups. The focus groups will be incorporated of individuals who are involved in fashion industries and buyers who of fashion industry products. Modern Trends in Online Fashion Shopping It is important to note that the market size of online shopping for fashion products has been growing steadily for the last number of years. This can be attested by the fact that the online fashion market sales has been increasing substantially over the years and it is estimated that it will keep up this trend in the future. The only year that saw a decline in the fashion industry only shopping was 2010 and this can be attributed to the fact that there was the financial crisis that had affected all the industries and the fashion industry was not an exception. However, it is important to note that the fashion industry has been slow in picking up its pace in ecommerce (Tse, 2008, p. 56). Diverse members of the society have started using the internet although there is a tendency for people to fast look through the traditional shops before they can make the decision to buy products from the online retailers. The main setback in buying fashion products from online retailers is associated with the problems that people go through when they need to return a product that did not fit their requirements. It is also important to note that people also prefer to buy fashion products that they have had physical contact with and not products that they have only seen the products’ images. These are the main problems that are facing the online fashion industry (Druehl, 2010, p. 56). Reasons for the Growth of Online Fashion Shopping From the time when the internet was incepted, the way people get information has been changed to very large degrees and the lives of the people have been changed in the same measure. This has also enabled people to have access to information and take advantage of this information to look for products and services that are being offered in the most efficient and cost effective way (VanHoose, 2003, p. 56). People are increasingly embracing the use of the internet for a number of reasons and these include shipping. This has propelled many retailers into using the internet as one of their marketing avenues. For some industries, it has paid off. However, some retailers are still reluctant on using the marketplace offered by the internet and this has ensured that the concept of online shopping has not taken off on a positive note as it has for the other industries (Carpenter, 2008, p. 98). Through the online marketplace, people can access numerous inventories, an almost impossible task when buyers are using the traditional brick and mortal businesses. This has played an important role in ensuring that online shopping has been one of the best ways for shoppers to do their shopping and the traditional means of shopping have been declining significantly in the entire market today although it is still a force to reckon with. The online fashion shopping has also become very popular despite the fact that it has been lagging behind in its development. A number of specialized fashion retailers that have focused their marketing to the internet marketplace. To the fashion retailers, this is one of the easiest and efficient way of information target market of the new fashion trends and it is also very cost effective. People who are using the internet to find the newest fashion trends and hence the retailers have capitalized on this advantage to ensure that they get their customers (Adams, 2003, p. 109). One of the reasons that online fashion buying is increasing its popularity is because it is very convenient. This is the most prevalent aspect of online shopping that is making more and more people to indulge in online shopping. In the context of fashion, people find it very convenient in the activity of accessing their favorite fashion retailers from their computers, browse through the inventory and check out in a few minutes. This convenience also comes with a factor of privacy that is very favorable to the online shoppers (Kleindl, 2003, p. 26). Security is also another important factor that determines the purchasing method prospective customers. At the inception of online shopping, many shoppers were skeptical about the security involved in purchasing goods and services online. This skepticism can be attributed to the fact that retailers were demanding a lot of information from the shoppers and yet the shoppers were not informed of how this very personal information would be stored and protected from being accessed by the wrong hands (Richardson, 2006, p. 64). However, online shopping has been improved immensely by the fact that online retailers have increased the efficiency of security on their websites and they are legally bound to protect information that can lead to loses and other harmful events to their online buyers (King, 2001, p. 99). Online shopping also offers the customers easy navigation to the inventories. The traditional brick and mortar retailers have been quickly out phased by online shopping and one of the reasons of this state of affairs is the facts that navigating the traditional premises can be a very tasking undertaking. However, with online fashion retailers, the customers are given a chance of easily navigating through the inventories and also the customers are given a guide to their navigation. This means that online shoppers are offers a better experience when compared to traditional shoppers (Bagby, 2003, 105). Decision Making Process of Online Buyers of Fashion There are various stages in the decision making process of a buyer when deciding whether to buy online or from the traditional brick and mortar premises. The first stage is the recognition of the needs and acknowledging the problems that necessitates the purchase. Need recognition will involve a buyer recognizing the fact that there is a need to buy clothes. Thus, the buyer must have identified the problem that can only be solved by buying clothes (Thames, 2000, p. 81). The next involves the buyer finding a source of information. This could involve the buyer looking for such information as to where one can find clothes efficiently and at very competitive prices. The fact that the internet has eased the process of gathering information may be very helpful to people who are looking for information as far as fashion is concerned. This can be attributed to the fact that buyers who chose to look for information over the internet are at a better position to find the best deals when looking for fashion products (Kanter, 2001, p.112). The next stage is where the purchaser will need to evaluate the available options. There are a number of factors that need to be evaluated. One of the factors is price where the purchaser will need to evaluate the prices of the products. Because there are many fashion retailers who have different prices, the buyer must decide the best retailer to buy fashion products from (Zook, 2004, p.85). It is also important to consider costs that are associated with buying goods from different retailers such as the distance and the cost of transport from the store to the purchaser’s destination. This means that the purchaser will have to consider the options between buying online and buying from the traditional stores (Weill, 2001, p. 69). After evaluation of the alternatives, the next decision-making stage is purchasing. This means that the buyer will have to make the decision of which retailer to buy from after considering all the pros and cons of purchasing from different retailers. This means that the purchaser will have to buyer from a particular retailer after all the decision making process (Turban, 2009, p. 96). There is where the online fashion retailers should ensure that before the purchasing decision has been arrived at, the purchaser is already convinced that buying from the online retailer is the best option. The final stage involves the buyer making the post purchase evaluation and the online retailer must ensure that the experience that the purchaser gets when purchasing from them is of very pleasing so that the purchaser can come back for the next purchase (Adams, 2003, p. 79). Conclusion Although the online fashion industry has had a slow start, there are projections that it will pick up just like the other industries. However, it is important for online fashion retailers to offer customers excellent services that are backed by competitive prices. This is the only way that the online fashion industry will be able to compete with the well established traditional fashion retailers who have been in the market for a number of decades. These traditional fashion retailers also are incorporating e-commerce into their marketing strategies and this means that the industry will soon be a thriving industry online. References Adams, FG, 2003, The E-Business Revolution & The New Economy: E-conomics After the Dot-Com Crash South-Western Educational Publishing. Bagby, JW, 2003, Cyberlaw Handbook for E-Commerce (Cyperlaw Handbook for E Commerce), South-Western Educational Publishing. 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