Online Shopping vs Retail Shopping Essay
Online Shopping vs Retail Shopping
Online Apparel Shopping v/s Retail Apparel Shopping
Subject:- Research Methods in Business
Topic:- Research Report
Online Apparel Shopping vs Retail Apparel Shopping is a new comparison in market these days. Where the internet consumption rate is growing at a lightning speed the consumers are shifting from retail shopping to internet online shopping to save more time. The research is based on what type of apparel shopping do the consumers really prefer. It also shows the statistics as to how many people actually use online shopping for buying clothes. Not only this, but the research also shows what are the parameters on which consumer do their shopping. There is a very interesting range of parameter chosen by the consumers while they do their apparel shopping. It also shows what percent of customers are brand focus or not brand conscious. There is a very thin line between the two. There are different age groups of consumers who are and who are not brand conscious. Its surprising to see that more than the adults (40years and above) the youth(16years to 35years) are more brand conscious and more brand loyal. After conducting the research its seen that there are many consumers who are not aware of online shopping.
They do not know the different websites available for clothes and they do not know the various price range and various choice of clothes available online. It shows that online market is not that popular among the people of India except for a few. One of the main reasons consumers in India do not prefer online shopping is because of the fake websites and fraud in money. They choose retail shopping because customers are more shop loyal than brand loyal in India. They get to try and see the apparel and they do not have to wish for their clothes to come after 2-3days. Thus companies need to invest more when it comes to publicizing the online stores for apparel and they have to come up with exciting offers to attract the crowd and more over there have to be proper cyber laws so that the consumers feel safe to shop online.
Review of Literature
Apparel shopping as gained transformation in the last 50 years. Earlier days where the merchants used to go door to door demonstrating people the clothes, the attractive colours, the goodness of the material and people never knew what a brand was. The new era of shopping has began, more number of international players have entered the market of apparels. The word “brand” has now become very popular among the consumers. The world has come to such a stage where a persons livelihood is judged by what brand of apparel he wears.
The era has began but the question is what is going to be the stronger medium of apparel shopping. Is it going to be the increase in number of retail stores like shoopers stop, vero moda, etc. or is it going to be the fast gaining importance of online websites. Many websites online are gaining publicity like www.junglee.com, www.myntra.com, www.jabong.com and so on. These websites have started advertising on television, radios, and on many other social networking sites. But how does an online apparel store compete against a retail store?
Low Prices and Better Offers
An online apparel store usually draws in customers by offering better prices and offers for quality products. By having an online store, they can save on monthly expenditures which allow them to offer clients good value for their money. Often times they offer free shipping to your locality depending on the total bill of the amount ordered.
Taking time to browse through an online apparel store is much less time consuming than going to a retail store. Often times, customers are worn out from their jobs and other chores and would rather prefer to be at home. Also, with the holiday season coming, most people cannot stand to go through the holiday rush of shoppers. Shopping online can easily be done while sitting in front of the TV or lounging on the sofa. With payments being made online as well, a person can just sit back, relax and wait for the package to be delivered.An online apparel store usually draws in customers by offering better prices and offers for quality products. By having an online
store, they can save on monthly expenditures which allow them to offer clients good value for their money.
Shopping online often offers better variety. Not only can you find them for affordable rates, but most of them allow you to get limited edition items that you might otherwise have missed out on.
Nothing can be more frustrating for a person to go to a shop only to realize that the item they wanted is out of stock and might be restocked at a vague date. This not only makes you unreasonably angry, but it also means that you have to keep taking time out to check if they have got the item you want. Online stores eliminate the chances of this happening by placing out of stock signs next to the product.
Review of Literature
Title: What drives consumers to shop online?
Authrors: Tonitta Perea y Monsuwé, (Maastricht University, Maastricht, The Netherlands),Benedict G.C. Dellaert, (Maastricht University, Maastricht, The Netherlands), Ko de Ruyter, (Maastricht University, Maastricht, The Netherlands)
Publisher: Emerald Group Publishing Limited
Abstract: While a large number of consumers in the US and Europe frequently shop on the Internet, research on what drives consumers to shop online has typically been fragmented. This paper therefore proposes a framework to increase researchers’ understanding of consumers’ attitudes toward online shopping and their intention to shop on the Internet. The framework uses the constructs of the Technology Acceptance Model (TAM) as a basis, extended by exogenous factors and applies it to the online shopping context. The review shows that attitudes toward online shopping and intention to shop online are not only affected by ease of use, usefulness, and enjoyment, but also by exogenous factors like consumer traits, situational factors, product characteristics, previous online shopping experiences, and trust in online shopping.
DRIVERS OF SHOPPING ONLINE: A LITERATUREREVIEW
Ana Teresa Machado
Escola Superior de Comunicação Social, Instituto Politécnico de LisboaCampus de Benfica de Instituto Politécnico de Lisboa-1549-014 Lisboa ABSTRACT
Consumers are increasingly adopting electronic channels for purchasing. Explaining online consumer behavior is still amajor issue as studies available focus on a multiple set of variables and relied on different approaches and theoreticalfoundations.Based on previous research two main drivers of online behavior are identified: perceived benefits of online shoppingrelated to utilitarian and hedonic characteristics and perceived risk. Additionally exogenous factors are presented asmoderating variables of the relationship between perceived advantages and disadvantages of internet shopping and onlineconsumer behavior. KEYWORDS
e-commerce; online shopping behavior; perceived benefits; perceived risk; exogenous factors
The increasing dependence of firms on e-commerce activities and the recent failure of a large number of dot-com companies stress the challenges of operating through virtual channels and also highlight the need tobetter understand consumer behavior in online market channels in order to attract and retain consumers.While performing all the functions of a traditional consumer, in Internet shopping the consumer issimultaneously a computer use as he or she interacts with a system, i.e., a commercial Web site. On the otherhand, the physical store has been transformed into Web-based stores that use networks and Internettechnology for communications and transactions.In this sense, there seems to be an understanding that online shopping behavior is fundamentally differentfrom that in conventional retail environment, (Petersonet al., 1997) as e-commerce relies on hypertext Computer Mediated Environments (CMEs) and the interaction customer-supplier is ruled by totally differentprinciples.
Understanding the factors that explain how the consumers interact with the technology, their purchasebehavior in electronic channels and their preferences to transact with an electronic vendor on a repeat basis iscrucial to identify the main drivers of consumer behavior in online market channels.Online consumer behavior research is a young and dynamic academic domain that is characterized by adiverse set of variables studied from multiple theoretical perspectives.Researchers have relied on the Technology Acceptance Model (Davis, 1989: Davis et al., 1989), theTheory of Reasoned Action (Fisbein and Ajzen, 1975), the Theory of Planned Behavior (Ajzen, 1991),Innovation Diffusion Theory (Rogers, 1995), Flow Theory (Czikszentmihalyi, 1998), Marketing, InformationSystems and Human Computer Interaction Literature in investigating consumer’s adoption and use of electronic commerce.While these studies individually provide meaningful insights on online consumer behavior, the empiricalresearch in this area is sparse and the lack of a comprehensive understanding of online consumer behavior isstill a major issue (Saeedet al., 2003).Previous research on consumer adoption of Internet shopping (Childerset al., 2001; Dabholkar andBagozzi, 2002; Doolinet al., 2005; Monsuwé et al.; 2004; O´Cass and Fenech, 2002)
consumers’ attitude toward Internet shopping and intention to shop online depends primarily on the perceivedfeatures of online shopping and on the perceived risk associated with online purchase. These relationships aremoderated by exogenous factors like “consumer traits”, “situational factors”, “product characteristics” and“previous online shopping experiences”.The outline of this paper is as follow. In the next section an assessment of the basic determinants thatpositively affect consumers’ intention to buy on the Internet is carried out. Second, the main perceived risksof shopping online are identified as factors that have a negative impact on the intention to buy from Internetvendors. Third, since it has been argued that the relationship between consumers’ attitude and intentions tobuy online is moderate by independent factors, an examination of the influence of these factors is presented.Finally, the main findings, the importance to professionals and researchers and limitations are
2. PERCEIVED BENEFITS IN ONLINE SHOPPING
According to several authors (Childers
et al., 2001; Mathwick et al., 2001; Menon and Kahn, 2002;) onlineshopping features can be either consumers’ perceptions of functional or utilitarian dimensions, or theirperceptions of emotional and hedonic dimensions.Functional or utilitarian perceptions relates to how effective shopping on the Internet is in helpingconsumers to accomplish their task, and how easy the Internet as a shopping medium is to use. Implicit tothese perceptions is the perceived convenience offered by Internet vendor whereas convenience includes thetime and effort saved by consumers when engaging in online shopping (Doolin, 2005; Monsuwé, 2004).Emotional or hedonic dimensions reflects consumers’ perceptions regarding the potential enjoyment orentertainment of Internet shopping (Doolin, 2005; Monsuwé, 2004).Venkatesh (2000) reported that perceived convenience offered by Internet Vendors has a positive impacton consumers’ attitude towards online shopping, as they perceive Internet as a medium that enhances theoutcome of their shopping experience in an easy way.Childers et al. (2001) found “enjoyment” to be a consistent and strong predictor of attitude toward onlineshopping.
If consumers enjoy their online shopping experience, they have a more positive attitude towardonline shopping, and are more likely to adopt the Internet as a shopping medium.Vijayasarathy and Jones (2000) showed that Internet shopping convenience, lifestyle compatibility andfun positively influence attitude towards Internet shopping and intention to shop online.Despite the perceived benefits in online shopping mainly associated with convenience and enjoyment,there a number of possible negative factors associated with the Internet shopping experience. These includethe loss of sensory shopping or the loss of social benefits associated with shopping (Vijayasarathy and Jones,2000).In their research, Swaminathan et al. (1999) found that the lack of social interaction in Internet shoppingdeterred consumers from purchase online who preferred dealing with people or who treated shopping as a social experience.
3.PERCEIVED RISK IN ONLINE SHOPPING
Although most of the purchase decisions are perceived with some degree of risk, Internet shopping isassociated with higher risk by consumers due to its newness and intrinsic characteristics associated to virtualstores where there is no human contact and consumers cannot physically check the quality of a product ormonitor the safety and security of sending sensitive personal and financial information while shopping on theInternet (Lee and Turban, 2001).Several studies reported similar findings that perceived risk negatively influenced consumers’ attitude orintention to purchase online (Doolin, 2005; Liu and Wei, 2003;
Van der Heidjenet al., 2003).Opposing results were reported in two studies (Corbittet al., 2003; Jarvenpaaet al., 1999). The authors found that perceived risk of Internet shopping did not affect willingness to buy from an online store. One of the reasons for this contradictory conclusion might be due to the countries analyzed respectively NewZeeland and Australia where individuals could be more risk-taken or more Internet heavy-users. IADIS International Conference e-Commerce 2005237
In examining the influences on the perceived risk of purchasing online, Pires at al. (2004) stated that noassociation was found between the frequency of online purchasing and perceived risk, although satisfactionwith prior Internet purchases was negatively associated with the perceived risk of intended purchases, butonly for low-involvement products. Differences in perceived risk were associated with whether the intendedpurchase was a good or service and whether it was a high or low-involvement product. The perceived risk of purchasing goods through the Internet is higher than for services. Perceived risk was found to be higher forhigh-involvement than for low-involvement-products, be they goods or services.Various types of risk are perceived in purchase decisions, including product risk, security risk and privacyrisk.
Product risk is the risk of making a poor or inappropriate purchase decision. Aspects involving productrisk can be an inability to compare prices, being unable to return a product, not receiving a product paid forand product not performing as expected (Bhatnagar et al., 2000; Jarvenpaa and Todd, 1997; Tan, 1999;Vijayasarathy and Jones, 2000).Bhatnagar et al. (2000) suggest that the likelihood of purchasing on the Internet decreases with increasesin product risk.Other dimensions of perceived risk related to consumers’ perceptions on the Internet as a trustworthyshopping medium. For example, a common perception among consumers is that communicating credit cardinformation over the Internet is inherently risky, due to the possibility of credit card fraud (Bhatnagar et al.,2000; George, 2002; Hoffman
et al., (1999); Jarvenpaa and Todd, 1997; Liebermann and Stashevsky, 2002).Previous studies found that beliefs about trustworthiness of the Internet were associated with positiveattitudes toward Internet purchasing (George, 2002; Hoffmanet al., (1999); Liebermann and Stashevsky,2002).Privacy risk includes the unauthorized acquisition of personal information during Internet use or theprovision of personal information collected by companies to third parties.Perceived privacy risk causes consumers to be reluctant in exchanging personal information with Webproviders (Hoffman et al
., 1999). The same authors suggest that with increasing privacy concerns, thelikelihood of purchasing online decreases. Similarly, George (2002) found that a belief in the privacy of personal information was associated with negative attitudes toward Internet purchasing
4. Previous online shopping experiences
Past research suggests that prior online shopping experiences have a direct impact on Internet shoppingintentions.Satisfactory previous experiences decreases consumers’ perceived risk levels associated with onlineshopping but only across low-involvement goods and services (Monsuwé et al., 2004).Consumers that evaluate positively the previous online experience are motivated to continue shopping onthe Internet (Eastlick and Lotz, 1999; Shim et al ., 2001; Weber and Roehl, 1999).
Relying on an extensive literature review this paper aims to identify the main drivers of online shopping andthus to give further insights in explaining consumer behavior when adopting the Internet for buying as thisissue is still in its infancy stage despite its major importance for academic and professionals.This literature review shows that attitude toward online shopping and intention to shop online are not onlyaffected by perceived benefits and perceived risks, but also by exogenous factors like consumer traits,situations factors, product characteristics, previous online shopping experiences.Understanding consumers’ motivations and limitations to shop online is of major importance in e-business for making adequate strategic options and guiding technological and marketing decisions in order toincrease customer satisfaction.
However there are methodological reasons to believethat the most relevant factors were identified in this context. A second limitation is that this paper is the resultof a literature review and has never been tested in its entirety using empirical evidence. This implies thatsome caution should be taken in applying the findings that can be derived from this study. Further research isalso needed to determine which of the factors have the most significant effect on behavioral intention to shopon the Internet.
The number of survey conducted was 35. The survey was administered to consumers both males and females from the age frame of 16years to 55years.
It catered to people living in Mumbai, Pune and Gujarat. Sampling Technique
The technique used is Convenience Sampling looking at the sample size and considering the scope of survey. Primary Data
The data used in the survey was the primary data which was catered to the consumers by using the questionnaire method. The data was administered in an electronic format. Secondary Data
Secondary data was collected for the purpose of review of literature where data from previous studies was collected for the purpose of reference and framing the survey outline.
35 surveys were filled, out of which 22 were female and 13 were male.
39% people shop their apparels from retail shops, 58% from malls and only 3% shop from online websites.
55% people choose brand as their parameter, 39% choose price and 6% go on the location of the store or mall.
Out of the total percentage of people surveyed 52% are brand conscious and the remaining are not.
55% people do their apparel shopping monthly, the most of which are females, 42% do it every six months and 3%do it once a year, most of which are males.
64% people say that online shopping is safe and remaining say no.
61% people think that online shopping doesn’t give them good variety of clothes.
88% people choose shopping from retail stores over online websites.
45% of the people think online websites offer better price range for shopping.
27% people think that the variety offered is too less by online websites for apparels.
28% people think that the websites offer very few options for sizes.
52% of the people think that online shopping is affecting the sales of retail stores.
Online shopping is the new mode of shopping which is very up coming and is going to be the future of shopping.
There has to be an increase in awareness of people about the online shopping websites, their products and the safety in buying from internet.
There have to be proper cyber laws to protect the interests of the consumers.
The retailers have to come up with better discount offers and new schemes to attract people so that their sales are not affected.
They need to have more price range of products and should keep their customers updated about the fashion currently.
If people would like to spend a day with their family out of the entire busy month nothing is as good as retail shopping, where the entire family is bonded again.
Most of the youth prefer online shopping and the adults prefer retail shopping. Youth find it very easy and convenient to swipe their credit cards than actually remove one whole day out of their holiday or work schedule to actually go and shop for their apparels.
Youth are more brand conscious about the brand what they wear and how much they bought it for. On the other hand adults are shop loyal. They trust the owner of the shop very much as they have been buying clothes from there since a long time. The owner of the shops also knows his customer well so they do not hesitate in giving discounts.
People are still not very inclined towards online shopping. They do not feel its very safe and is a good way of shopping.
They consider shopping as a fun thing so they wish to go out to the retail stores try some clothes see if they look good in it, if the clour suits them and material is good only then they choose to buy it.
But slowly and steadily even online shopping is gaining importance as it is the upcoming market in today’s world. People don’t have to stand in long lines, wait for their turn in the retail stores and then buy clothes. They can easily sit at home choose the latest apparel in vogue and the order is delivered at their door step.
Retail outlets need to come up with a better price range and good variety of clothes if they wish to be in competition with the online websites.
Retail shopping and online shopping have been the revolution in the shopping era.
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