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What Motivates or De-Motivates Customers to Online Shopping - Essay Example

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What Motivates or De-Motivates Customers to Online Shopping

E-commerce started the shift from the real market to a digital market wherein business is done through the internet and becomes an equal playing ground for buyers and sellers. Data from the U.S. Census (2011) shows the popularity of this marketing scheme, as in 2008 a total of $227,800million has been generated by e-commerce sales. This is an increase of 2.07 percent from 2007 e-commerce sale of $222,464m (See Annex 1) Statement of the problem. The aim of this dissertation is to examine the consumer behavior in explaining the motivations that attract customers to on line shopping. It is my contention that not everybody could be motivated into the growing interest of e-commerce. My objectives are twofold. First I would like to investigate the motivations of the middle and upper class segment of customers to buy on line as well as the reluctance of the lower class segment of the market. My research will also cover the fears of shopping on line to know if this becomes a mitigating for others not to take advantage of on line shopping. The implication of the research would show that knowledge of patronage motives would be important to retailers to understand the various influences which induce customers to purchase. Review of literature In this review of literature, I will present those theories, concepts and published literatures that in my opinion are most interesting and valuable for the purpose of this research. This will include the study of Electronic Commerce: Security Issues done by Matthew L. James on matters concerning electronic commerce and security risks involved in it. James figures out the rather slow regulatory and policy measures that shows pitfalls in implementation. For instance, James showed that Australia’s on-line security efforts appears to be befuddled, while that of US attempt to control encryption shows technical difficulty. James in this study, argued that e-commerce transaction is subject to interception, tracking, or attack, and as such there is a need to safeguard the users of the internet. He emphasizes the risk of unauthorized transaction from the third parties that may occur in fund transfers, smart cards and on line currency transactions. In a similar subject, Jay Van Varck (1997) discussed in study the real issues of e-commerce in today’s market. He discussed in his study the phenomenal growth of e-commerce but at the same time the pitfalls consumers may find they are in when using the website. He cited conditions wherein customers only see the merchandise in picture and spells out the difference of the real feel when one is in the mall. He stressed the fears of consumers on giving private information like credit cards and bank details for fear of being hacked and fraud. The study of Suki, Ahamd and Thyngarahan (2002, May 15) about the interest of Malaysians on internet shopping and their security concerns will be viewed to find if they are similar to the experiences of customers in my study. In this study, Malaysians are found to be avid users of internet and uses internet shopping for convenience. However, study found out security concerns that serve as barriers to continued use of online shopping. A definition of the term electronic commerce will be given and the type of internet transactions will be presented, as found in the website of (Digidsmith n.d.) A definition and type of transactions are deemed necessary for the study to know the classification of customers their uses and purposes of the internet shopping Reasons why people buy on line are identified in the study done by Gordon (2008 Sept. 29) wherein she outlined reasons why consumers prefer to buy on line. She emphasized in this study the comforts of shopping at home anytime of the day without having to ...Show more

Summary

Dissertation Proposal Introduction As the trend of the one line shopping continues, there appears to be a need to study the motivating factors that attract customers to this new shopping channel, the electronic commerce or e-commerce known today…
Author : dgoldner
What Motivates or De-Motivates Customers to Online Shopping essay example
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