Consumer Behavior in Online Shopping

According to MarketLine, the world online retail market expanded by almost 18% in 2010 and is predicted to reach close to $435 billion in sales. The market is expected to reach a 90% growth by 2015 and exceed $827 billion in sales. Listed in an article “Ecommerce Growth Statistics”, the average amount spent by each consumer is expected to rise from $1,207 per year to $1,738 per person by 2016. That is a significant increase. That shows that people prefer to shop online than going to the actual store in today’s society. Shoppers will spend on an average of $327 billion online shopping in 2016, which is about 45% from $226 billion in 2012. It is very evident that consumers will drive ecommerce into the future; especially e-retail. In just a few years, purchases online will be more profitable than ever, with others products and services available to purchase such as mobile and social allowing consumers to shop to their convenience. For retailers and

Consumers are making purchases daily. There are a number of occasions and reasons prompting people to shop. Special occasions such as birthdays, anniversaries, and holidays all contribute to retail sales. Sustaining one’s daily life through purchase of food, clothing, personal hygiene products and cleaning products also contributes to the economy through commerce. How do most people like to shop? In recent years a new alternative to the traditional brick-and-mortar shopping, online shopping, has increased in popularity. “U.S. e-commerce sales grew from 72 billion U.S. dollars in 2002 to 228 billion U.S. dollars in 2010.” (“Online shopping,” n.d.,

Online purchasing is becoming more and more practical thing for contemporary customer. It is explained by high internet penetration in every country, lower cost than in retail network, door to door delivery. Internet plays an important role nowadays; therefore it creates a new market, which sometimes is quite difficult to measure. Online shopping is different from the B&M shopping due to the fact that there is no physical presence of goods, from other standpoint internet is able to sell way more services and motivation and decision making process directly connected to the feedbacks.

Amazon and eBay attracted the most unique visitors each month to their global e-commerce sites. Forrester Research Inc. estimates that the global online population will be 2.32 billion in 2014. Online shoppers have more options than ever before. Used, hard to find items, and collectables are more accessible thru online shopping. Online shoppers no longer need to drive from one store to the next to find the best deal, and there is no need to stand in long lines making shopping online fast, easy and enjoyable.

As the fast growth of technology, people prefer online shopping more than shopping in the physical store. A lot of surveys show us there’s a great increase in online shopping. For people to choose to shop online, pros should be more valuable than cons in their beliefs.

The idea behind this study is of great significance because e-commerce (online shopping) has grown tremendously since the turn of the century. It has shaped the way people do shopping for the most part.

Research methodology is a way how the research is conducted step by step and in order. There are two methods used for data collection which is the primary data and secondary data. These data can be obtained and used many ways. The data is taken and analyzed in advance to produce a result that we can use for research and future reference. This study will relate to the objective we want to achieve and finding the answer to every objective we seek. In order to successfully achieve the objectives we seek, we must know

This report will outline the most relevant behavioural characteristics of online consumers and examine the ways they find, compare and evaluate product information. Comparison of the newly collected survey data with the existing consumer behaviour theory resulted in detection of a number of issues related to a specific consumer group. The purpose of this report is to translate these findings into a set of implementation activities on strategic and technological level. Execution of these recommendations will result in better conversion of visitors into customers and encourage customer loyalty and referrals.

Methodology of research indicates the general pattern for organizing the procedure for the empirical study together with the method of obtaining valid and reliable data for problem under investigation.70

is an Associate Professor of Marketing and International Business at the E. Philip Saunders College of Business, Rochester Institute of Technology. Her research interests include online marketing strategies and international marketing. She has articles published in the Journal of International Marketing, the Journal of World Business and the International Journal of Electronic Marketing and Retailing. With co-authors, her papers have earned awards at the American Marketing Association’s Educators’ conferences and is the 2009 recipient of the S. Tamer Cavusgil Award. She

Moving further we started reading these selected research papers and continuously brainstormed how we are going to use this knowledge in our project to convert our idea into a reality.

The expansion of the World Wide Web and increased access to devices which allows internet access has resulted in the creation in a new form of retail transactions; Online shopping. (Shim, Quereshi and Siegel 2000) define Web Shopping as the process consumers go through to purchase products over the internet. (Alba et al 1997) defines it from a consumer view point as, web shopping allows web shoppers to search and compare various products or services over the internet that are located in different parts of the world. Online shopping can be accessed from a variety of different devices now not only via computers which are stood in one place but consumers can access online shopping now from smart phone devices. Due to the advance in new technologies web shopping is still growing not only with the UK, also in other developed European countries; “Sales in the UK, Germany, France, Sweden, The Netherlands, Italy, Poland and Spain are expected to grow from £132.05 bn [€156.28 bn] in 2014 to £156.67 bn [(€185.39 bn] in 2015 (+18.4%), reaching £185.44 bn (€219.44 bn) in 2016.” (http://www.retailresearch.org/onlineretailing.php). The rapid growth in the online retail has created a vibrant market space which holds strong competition with all other shopping habits. It is obvious that online shopping is growing as more and more consumers are turning to the internet to purchase products and services, the question is what drives consumers to turn to the internet over the

In an analysis of the consumer behavior online, with focus group as young adults aged between eighteen and thirty-four interested in buying a mobile phone or a related product ,Petrovic Dejan explained that the most relevant behavioral characteristics of online consumers and examine several ways they find, evaluate and compare product’s information. Comparison of the freshly collected surveyed data with the present existing consumer behavior theory resulted in number of issues related to a specific consumer group. The motive of this report is to translate these findings into a set of implementation activities on strategic and technological level and the execution of these recommendations will result in better conversion of visitors into

Total online spending as a percentage of total monthly spending varies by country with Chinese and Korean online consumers allocating the most via the web than any other in the region. Online consumers in New Zealand, Australia, Malaysia and Hong Kong allocate the least.

I hereby declare that the report entitled Consumer Behavior towards Online Marketing is my original work. It has not been submitted to any other university or Institution of higher learning for award of any degree or diploma.