The Impact Of Technology On Consumer Behaviour

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

Some of the best companies operating this space are Amazon, Ebay, Snapdeal, Jabong etc.The format of this retailing is to provide a platform to the vendors to sell their products through internet/online, it is the responsibility of seller to ensure delivery of product to buyer.The customers are delighted by the unique experience of virtual buying and some times the cost of products is less than the mortar and brick shop which is attracting many buyers towards as it is light on wallet.Some of the big IT companies like Apple and DELL also have their online stores for consumers shopping at his convenience. Internet retailing is exponentially growing at 48% and in terms of value Rs 27 million. Over a period of time due to ease of purchasing at any time and per choice, it is predicted that the internet retailing Vs non store retailing is going to more than 46%. At somepoint LG Ezbuy was commanding the market share of 23%, other big players in this space are Yahoo web services,Fabmall, Indiatimes.com, and India

It is stated in the last release from The Australian Bauru of Statics that online retail accounts for 3.0 per cent of total retail turnover. It is no secret that the rapid growth in online selling is a continuing development as technology advances but is our need for a convenient bargain compromising quality and the Australian economy?

Technology has advanced and changed very rapidly. Our business world depends on the most recent technology. Technology impacts customers’ choices of buying because what costumers want is convenience and personal satisfied tastes.

According to Turban and King (2003), internet technology renders retailers an additional channel for branding, transactions and customer relationship management, the adaptation of which may drive down retailers’ transaction costs, and ensuring faster and higher quality of customer interactions, resulting in enlarging the existing markets and consumer base. M&S realizes this and have tried to sell clothing via high street stores as well as via internet though they have experienced cost cutting, rationalisation and management changes in order to revive their business in recent years. Internet technology might enable sustainable competitive advantage, but problems remain on how to physically organize their online retail operations.

Technology is playing a vital role in the expansion of global retail. Consumers can find most of the products they buy online, through various retailers, compare prices, thus choose the best offer. Companies like Tesco must have a large online presence if they want to be successful over a long period of time. Tesco must compete with other retailers on price and/or try to provide benefits in other ways. This lead to

The Internet has changed and will continue to change how people shop and new competition through the Internet will continue to shape the market.

A steady increase in the popularity of online sales has caused a major push towards e-commerce in the retail industry.

Business like Amazon wants to make buying item from their business easier for customers. This is why Amazon offers E-retailing which gives customer option to go shopping online. The internet has had impact change on consumers shopping habit as shopping online has numerous advantages which is why online shopping continues to gain popularity. Some of the advantages of E-retailing is that it’s convenient as consumers are able to go shopping at home which could help them save cost on travelling and also gives consumers an option to compare prices of different products as there are wide range of products being sold online.

One thing that is certain is that the world has become more connected and this growth in online shopping has become a necessity to keep abreast of modern times.

Online shopping or online retailing is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. Alternative names are: e-shop, e-store, Internet shop, web-shop, web-store, online store, and virtual store. An online shop evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping center. The process is called business-to-consumer (B2C) online shopping. In the case where a business buys from another business, the process is called business-to-business (B2B) online shopping. The largest of these online retailing corporations are eBay and Amazon.com, both based in the United States.

Supermarket e-commerce stores that have altered business practice grow very fast. The popularity of online supermarket increases every year. Keynote’s study (as cited in Hand, Riley, Harris, Singh, and Rettie, 2009, p. 1205) explain that in 2006, the percentage of online supermarkets are higher approximately 35% than previous year. It could be that customers will shop online only in the future if the popularity of traditional stores go down. In addition, many supermarkets such as Walmart, Coles, and Giant are starting to build e-commerce. Online supermarket grow

There is no doubt that online retail is growing everywhere, but one thing to stay aware of is that the landscape is very diverse. This means that there are countries and regions that are at different stages of development in regard to their e-commerce and online retail maturity. Even though there is a lot of variation, one thing to note is that with only a total of 4% of sales being online globally in 2012, the e-tailing emergence really has only just begun.

The spread of Internet usage has impacted the retail sector. As can be seen, many retailers began to use online channels, as they take advantage of one of the most successful platforms of trade (Limayem et al., 2000; Levy and Weitz, 2001; Shim et al., 2001). The growth of new online shopping channels catches the attention of consumers who have become excited to try this new platform. Although Internet shopping channels seem to be growing, the growth of grocery shopping via online has been slower than other forms of retail (Yan and Opperwal, 2006).

The evolution of technology and the internet has brought tremendous change to all facets of daily life. One area where this change is overwhelmingly evident is retail. Where once consumers had to physically go to a store in order to purchase goods and had a limited view of competitors, consumers are now able to shop from anywhere on their mobile devices, and access competing prices with ease. This was great for consumers and online retailers, but for brick-and-mortar businesses like Best Buy, this posed a significant challenge. Brick-and-mortar retailers were tasked with the challenge to adapt and overcome the competition posed by the online retail market, or risk being left in the past.