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514 Vanisha PDF
514 Vanisha PDF
1.0
Introduction
2.0
Literature Review
Online-shopping has been on the lips of many researchers recently and has
attracted numerous studies on online consumer behaviour. An outcome
perhaps derived from the increasing popularity of internet usage which
increased by 362.3% worldwide from 2000 to 2009 (Internet World Stats,
2009). These studies described important factors such as attitudes,
perceptions and motivations, which can influence consumer behaviour and
dictate the success or failure of internet marketing strategies (Goodwin,
1999). Therefore, understanding and predicting the customers mindset is not
an option or a luxury but it is an absolute necessity for survival (Chaffey and
Smith, 2008, p.140). Contrary to traditional means, online customers are now
empowered due to the information power shift to consumers (Pires et al.
2006, p.946). There has been a revolution from information scarcity to
information democracy (Swahney and Kotler, 2001, cited Pires et al. 2006,
p.939). Internet consumers have acquired a transcendental role to affect
directly the outcome of any transaction and the firms value creation (Hoffman
and Novak, 1996; Weiber and Kollmann, 1998, cited Martnez-Lpez et al.
2005 p.313). Indeed, online consumers have been empowered and their
actions, if not monitored, can cause the collapse of an E-retailer.
2.1 Factors affecting E-consumer behaviour
The stimulus-response model states that the marketing stimuli and the other
stimuli will exert pressure on the consumers psychology and characteristics,
to affect the buying decision process and the purchase decision (Kotler and
Keller, 2006). Constantinides (2004) further developed this model to
incorporate the web experience element (figure 2). The latter comprises of
functionality, psychological and content ingredients. The web experience is
the consumers total impression about the online company (Watchfire
Whitepaper Series, 2000, cited Constantinides, 2004, p.113) and the marketer
has direct control over it, to influence consumer behaviour (Constantinides,
2004). All the three factors mentioned in the model below will influence
consumer behaviour and will need to be analysed separately.
Figure 3 Motivation
Adapted from: Chaffey and Smith, 2008. p143.
Motivation to shop offline or online is mainly founded on hedonic (pleasureoriented) and utilitarian (goal-oriented) factors (Babin et al. 1994.). Onlineshopping confers less hedonic benefits (Dholakia and Uusitalo, 2002) and is
thus a deterrent for individuals who requires high social interaction
(Swaminathan et al. 1999). Conversely, goal-oriented individuals enjoy the
freedom and control of the E-shopping (Bidgoli, 2003). However, hedonic
consumers can be attracted online, especially to a specific class of products
or hobby-related websites while goal-oriented consumers are attracted
towards information, convenience, selection and control (Sorce et al. 2005).
Perception
Perception is the way someone perceives the world around him. It can be
framed by the Technology of Acceptance model (Davis et al. 1989), which
includes perceived ease of use and usefulness dimension, to determine
information-technology adoption. Ease of use, which is based on hedonic
factors, refers to the effortlessness of using a specific process - the internet to produce an outcome (Monsuw et al. 2004). Usefulness, which is based on
utilitarian elements, refers to the benefits of using this process to arrive at the
desired outcome (Monsuw et al. 2004).
Moreover, perception will be influenced by differences between costs,
convenience, enjoyment and risks (Huang and Oppewal, 2006). However,
perception can also vary among individuals, based on selective: attention,
distortion or retention. (Kotler and Keller, 2006). For instance, uncertainty and
risks can influence the perception of an individual and deter them online
5
Figure 4 Reference-groups
Adapted from: Carmen, [no date].p.1137.
Functionality
Functionality is how efficiently the online environment serves the consumer
and is sub-categorised further by usability and interactivity.
Usability and Convenience
Web-usability is the quality and effectiveness of the web in helping the user to
reach his purpose with minimal efforts (Nah and Davis, 2002). Internetshopping saves more time than brick and mortar stores (Alreck and Settle,
2002). According to Lohse and Spiller (1998), convenience is in term of:
Timely delivery: getting the product on time.
Ease and swiftness of ordering online.
Attractive online product display.
Industry researches reveal that around 60-75% shopping carts are
abandoned because of unclear and slow checking out procedures (Business
Link, 2009), which defeat the convenience advantage of E-shopping.
Moreover, convenience is a questionable point as generally, physical delivery
is slow and prevents immediate receipt of certain type of goods and physical
inspection is deficient (Bidgoli, 2003). Nielsen survey (2008b) showed that
convenience, time saving, avoiding crowds and saving gas are among the top
four reasons to shop online.
Interactivity
Interactivity is made-up of two dimensions (Constantinides, 2004):
Interactivity with the E-seller to customise products/services.
Interactivity with the web users is about availability of customer
service. The latter is a highly sought element online (Ghose and Dou,
1998).
Effective after-sales services and lenient refund policies will help to reduce
perceived risk level toward E-retailing (Singh, S. 2006). Forrester-Consulting
(Internet Retailer, 2008) underlined how by constructing a flexible return
policy, about 81% of shoppers would be tempted to buy online and would
remain loyal to an E-retailer. However, E-retailers must also ensure that their
interactivity is speedy (Novak et al. 2000) and that they provide customer
reviews (Lim and Dubinsky, 2004). Nevertheless, some consumers regard
absence of human interaction as imposing less pressure on them and less
reliance on unhelpful or uninformed sale force (Bidgoli, 2003). Customisation
9
3.0
Methodology
4.0
4.1
12
The CSO study involved people greater than 12 years old while the current
study included those greater than 18 years old. This may explain why CSO
having a larger denominator, sometimes had a more diluted percentage. The
high entertainment purpose is because the internet itself is an entertainment
tool and offers other opportunities as well (music, surfing), for each according
to his/her taste.
4.2 Percentage of consumers familiar with E-shopping
About 27% of the respondents have shopped online. The few internet access
percentage among Mauritians hinders E-shopping. Moreover, the latter is still
in an introduction stage of the product-life-cycle, as we still do not have an
internet-shopping culture yet entrenched compared to developed countries.
However, their shopping frequency revealed that the few people shopping
online, do it regularly, as 40% of them have shopped more than 4 times. They
are repeated and hence, experienced shoppers in this niche market as
sometimes, E-shopping satisfies them better than offline-shopping, due to the
benefits it provides.
13
Figure 7: Shopped-online
Age
Younger individuals (80% in the 18-35 age-bands) shopped online more than
the older people. The internet and E-shopping were born recently; therefore,
younger customers are earlier adopters and are more accustomed to using
them.
Table 2: Age
Intention
The buyers on average agreed to the idea of shopping again in the future. No
one was less than indifferent about it. This indicates that E-shopping can
satisfy customers with the benefits it procures and is thus sustainable.
Table 3: Intention
Gender
The buyers were 70% male and 30% female, highlighting the strong
prevalence of male in this cyber-field. Research has shown that males are
earlier online-shopping adopters than women are, as they are more
accustomed to new technology (Bidgoli, 2003, p.14).
Location
Most of the shoppers were from the districts of Plaines Wilhems and Port
Louis, two Mauritian urban areas that are advanced in term of internet
connectivity and economic development. There seemed to be a possibility of
E-shopping in these kinds of areas. It should be noted that Tantebazar.com
has been implemented in Plaines Wilhems.
Figure 8: District
16
Figure 9: Experience
(c) Attitude, beliefs and Perception
The answerers considered online-shopping as not difficult to learn or to use
(hedonic perception) (mean=2.52). However, although the mean of Eshopping is value for money (utilitarian perception) bended towards
indifference (2.76), a significant percentage of the respondents, disagreed to
this idea (43%).
17
18
19
20
5.0
Recommendations
The recommendation has been made for E-Marketers and for the
government.
For E-Marketers
21
6.0
Conclusion
We can conclude that all of the studys research questions were answered
and its results were mostly consistent with other researches. However, more
analysis of the Mauritian market is necessary to validate these findings.
According to this study, the internet culture is still an infant in Mauritius and
not all consumers might be online ready. The future of E-commerce and the
Cyber-island vision lie mostly in the hand of the government. Only if it
provides the necessary ingredients, can marketers follow suit. Presently, there
are some possibilities of online niche marketing especially among the young,
educated, online-experienced and male shoppers. The living local examples
in the likes of tantebazar.com, lecygne.com or the emerging one like
lexpressproperty.com, prove that E-retailing can be sustainable in Mauritius.
In a world of intense competition, Blue-Ocean opportunities (Chan Kim and
Mauborgne, 2005) exist. However, not everything that shines is gold and
companies should not be bewitched by E-retailings hype. Rushing online
blindly can lead to another dot-com bubble burst. Mauritius is a small island
but Singapore is smaller than it is. Yet, the latter is more developed and has
many B2B and B2C E-commerce opportunities. The internet is not a
revolution but an evolution of our traditional way of shopping. With the
advancement of the 24/7 culture; more and more demanding working life; long
end of month queues at hypermarkets; endless traffic jam and the
government intention to implement E-government Gateway, it is surely not
the last of what we will hear about E-retailing.
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