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Smith and Rupp (2003) also identified the age factor as a determinant for online purchase
intentions. They argued that older people who had no frequent interactions with the
Internet and the computer would not use the Internet as a medium for purchases, while
young adults would. This was concluded by that the young adults used the Internet and
computers more frequently. Younger people were also identified to havemore technical
knowledge. Monsuw et al. (2004) also supported this judgement by concluding that
younger adults usually have greater interest in using new technologies to browse for
information and evaluate alternatives.
Life patterns concerning Online Behaviour, such as how much the consumer uses the
Internet, Webographics, as Bergman et al. (2005).
How much the online consumer shops online, Online Shopping Patterns, can be used
in order to find out what impact certain factors have on different type of consumers
(Bergman et al. 2004).
Prior experiences have also been identified to be relevant for what Beliefs and Attitudes
the consumer has towards online shopping and are therefore also important for the
research (Monsuw et al. 2004).
Social influences have an effect on the consumer in the early decision making stage
and these were referred to as Reference Groups (Christopher & Huarng 2003).
These are the consumer characteristics that are relevant for this research and need to be
identified in order to find out who the online consumer is and what affects him when
shopping online. These we will be referred to as Consumer Traits and Online Behaviour.
To summarise the prior text and to answer the question what identifies an Online
Consumer, one can draw the conclusion that for research the important consumer
characteristics that need to be identified are:
Consumer Traits
Demographics
Attitude and Beliefs
Impact of Reference Groups
Online Behaviour
Webographics
Online Shopping Patterns
Internet Usage
Price which is a part of the marketing mix is a factor used in order to stimulate the
consumer and is also a communicator, bargain tool, and a competitive weapon. The
consumer can use price as a mean of comparing products, judge relative value for money,
and judge product quality (Brassington & Pettitt, 2000).
The factor Trust is considered to be a concern on the emotional basis in the minds of the
consumers. The consumers have a focus on their safety needs and want to satisfy them
before making a purchase (Brassington & Pettitt, 2000).
The factor Convenience is considered to be a benefit in the eyes of the consumer and a
quality derived from purchasing over the Internet. It is therefore considered to be a
motivator and a benefit to consumers. (Constantinides, 2004)
We believe that these factors have a significant influence on the consumer when
purchasing online. To further analyse the factors, we study underlying attributes that
represent what way the factors affect the consumers.
According to Luhmann (1979) who has a sociological point of view on the theory of trust,
there are three modes of maintaining expectations about the future, familiarity, confidence
and trust. To experience trust, familiarity and confidence must have been established.
However, trust is only necessary when there is a high perceived risk, such as during a
purchase transaction or a similar action. The consumers previous experience and trust
in the computerized medium is likely to affect his amount of trust in online shopping (Lee
& Turban, 2001). According to Lee and Moray (as cited in Lee & Turban, 2001) human
trust in computerised systems depends on three factors:
1. The perceived technical competence of the system - The systems apparent ability to
perform assigned tasks.
2. The perceived performance level of the system - How fast and reliable it appears to be
able to finish the tasks.
3. The human operators understand of the underlying characteristics and processes
governing the systems behaviour.
Previous knowledge also affects trust. Luhmann (1993) states that, "Practical experience
tends to teach us the opposite: the more we know, the better we know what we do not
know, and the more elaborate our risk awareness becomes (p. 28).
Turban et al. (2001) constructed a model that highlights what trust is constituted from
when purchasing on the Internet. According to it trust is dependent on the six variables.
The Factor Convenience
Convenience is anything that is intended to save time and frustration according to the
Swedish National Encyclopaedia. Further definitions of the concept of convenience are:
The quality of being suitable to ones comfort, purpose or needs
Personal comfort or advantage
Something that increases comfort or saves work at a suitable or agreeable time (Lexico
Publishing Group [LLC], 2007)
Online shopping as a new medium for retailing creates a number of different advantages.
One of these is that it is considered to be more convenient to shop online compared to
the traditional way of shopping. The convenience attributes that online shopping provides
are:
Less effort:
Being able to shop at home
Time saving
Being able to shop at any time of the day
Azjen (as cited in Kim & Park, 1991) claims that online shopping provides convenience
for consumers such as time savings and search convenience if compared to the
traditional way of shopping. Kim and Park (1991) also argue that if online shopping is to
be perceived as convenient for the consumer, the consumer must perceive a certain
amount of easiness with accessing the Internet and also with carrying out the behaviour
with shopping online. The less complexity the consumer perceives with accessing the
Internet the more attention the consumer has to enter the Internet and search for
information. Further, the authors found that there is a positive relationship between the
time spent, the intention to shop online and the attitude towards the Internet. Therefore,
Kim and Park (1991) came to the conclusion that the consumers that found the Internet
to be easily accessible and used, would spend more time online and search for
information and also shop more online. Hence, the consumers that perceives Internet
information search as easy, would perceive it more convenient. They also conclude
that the information online should be easy to find and, therefore, the consumer should
develop effective search tools which would enhance the perceived behavioural control for
the consumer online. Kim and Park (1991) argue that the perceived easiness of the
Internet is one of the determinants consumers regard when deciding on convenience.
Saving time is also mentioned by Kim and Park (1991), and it is closely related to
information search. The consumer is not required to leave his home in order to shop
online and at the same time the information search and price comparison process is much
more available and easy to access.
Swaminathan et al. (1999) states that consumer characteristics play an important role in
the consumer's decision to shop online. The authors then identify the so called convenient
oriented consumer as the most potential online buyer since they value the convenience
of shopping at home as a large motive for purchase. The characteristics of convenience
with online shopping can be summarized as follows:
Consumers can shop from their homes meaning they do not have to take certain aspects,
needed when shopping in the traditional way, into consideration. Online shopping is,
therefore, considered to require less effort. It is also considered to be time saving, the
consumer can search for products and prices easy through the developed search
engines. Through tracking devices a consumer can at any time check where theirpackage
is. Another time aspect of online shopping is that it allows the consumer to shop at any
time of the day, the consumer does not need to consider if the stores are open or not.
Usefulness
Usefulness is defined as the individuals perception that using the new technology will
enhance or improve her/his performance (Davis, 1989, 1993). Applying this definition to
our research context, as the new technology we classify shopping on the Internet, and as
the individuals performance the outcome of the online shopping experience. Then,
usefulness refers to consumers perceptions that using the Internet as a shopping
medium enhances the outcome of their shopping experience. These perceptions
influence consumers attitude toward online shopping and their intention to shop on the
Internet. TAM posits a weak direct link between usefulness and attitude, and a strong
direct link between usefulness and intention (Davis et al., 1989). This was explained as
originating from consumers intending to use a technology because it was useful, even
though they did not have a positive affect toward using. Apart from this, usefulness is
also linked with ease of use to determine consumers attitude toward online shopping.
According to TAM,usefulness is influenced by ease of use, because the easier a
technology is to use, the more useful it can be (Dabholkar, 1996; Davis et al., 1989). In
our framework, we include two latent dimensions of the usefulness construct: consumer
return on investment (CROI), and service excellence (Mathwick et al., 2001). Both
dimensions are extrinsic value-based perceptions and serve as performance indicators
for shopping on the Internet. CROI is the perceived return on cognitive, behavioral, or
financial investments made by the consumer. By investing in a computer and learning to
shop on the Internet, the consumer expects a desired result, such as an online search or
Web purchase, in
return from shopping on the Internet. If this return meets their expectations, consumers
usefulness of the Internet as a shopping medium will be positive. Service excellence
is the consumers appreciation of delivered promises and performed functions. Service
excellence operates as an ideal, a standard against which judgments are ultimately
formed (Holbrook, 1994). If online shopping meets this ideal by enabling the consumer to
accomplish the shopping task he or she has set out to perform, then consumers will judge
the Internet shopping performance positively (Mathwick et al., 2001). This leads to
positive perceptions regarding the usefulness of online shopping.
Ease of use
Ease of use is defined as the individuals perception that using the new technology will
be free of effort (Davis, 1989, 1993). Applying this to our research context, ease of use
is the consumers perception that shopping on the Internet will involve a minimum of effort.
Whereas usefulness referred to consumers perceptions regarding the outcome of the
online shopping experience, ease of use refers to their perceptions regarding the
process leading to the final online shopping outcome. In a simplified manner, it can be
stated that usefulness is how effective shopping on the Internet is in helping consumers
to accomplish their task, and ease of use is how easy the Internet as a shopping medium
is to use. Ease of use has a dual effect, direct as well as indirect, on consumers intention
to shop online. The indirect effect on intention is through usefulness, as already
explained in the previous section. The direct effect is explained by the fact that in
behavioral decision making consumers attempt to minimize effort in their behaviors, as is
also the case with consumers perceptions regarding the ease of use: the perception
that Internet shopping will be free of effort (Venkatesh, 2000). The easier and more
effortless a technology is, the more likely consumers intend to use this technology.
Understanding that ease of use affects consumers attitude and intention toward online
shopping, it is important to identify the latent dimensions of this
construct in the Internet setting. According to TAM, ease of use is particularly of
influence in the early stages of user experience with a technology or system (Davis,
1989). Following this, Venkatesh (2000,p. 343) stated: . . .With increasing direct
experience with the target system, individuals adjust their system-specific ease of use to
reflect their interaction with the system. Implying that if consumers get more experienced
with Internet, they will adjust their perceptions regarding the ease of use of the Internet
as a shopping medium in a positive direction. Besides experience with the technology
or system, also three other latent dimensions of the ease of use construct are
incorporated in our framework: control, computer playfulness, and computer anxiety
(Venkatesh, 2000). Control relates to an individuals perception of the availability of
knowledge, resources, and opportunities required to perform a specific behavior, in our
case online shopping. Computer playfulness is the degree of cognitive spontaneity in
computer interactions. Playful individuals may tend to underestimate the difficulty of the
means or process of online shopping, because they quite simply enjoy the process and
do not perceive it as being effortful compared to those who are less playful (Venkatesh,
2000). Computer anxiety is defined as an individuals apprehension or even fear when
she/he is faced with the possibility of using computers. This influences consumers
perceptions regarding the ease of use of the Internet as a shopping medium in a
negative way, since using a computer is one of the necessary requirements for online
shopping. the ease of use of a particular Web site or online store, and not the Internet
as a shopping medium in general, we choose not to elaborate on these site characteristics
for the purpose of this paper. Enjoyment Next to the evidence for the critical role of
extrinsic motivation for technology use (Hirschman and Holbrook, 1982; Babin et al.,
1994), there is a significant body of theoretical and empirical evidence regarding the
importance of the role of intrinsic motivation (; Venkatesh and Speier, 1999). Intrinsic
motivation for Internet shopping is captured by the enjoyment construct in our
framework. Intrinsic value or enjoyment derives from the appreciation of an experience
for its own sake, apart from any other consequence that may result (Holbrook, 1994).
Applying this to our research context, enjoyment results from the fun and playfulness of
the online shopping experience, rather than from shopping task completion. The purchase
of goods may be incidental to the experience of online shopping. Thus, enjoyment
reflects consumers perceptions regarding the potential entertainment of Internet
shopping. Childers et al. (2001) found enjoyment to be a consistent and strong predictor
of attitude toward online shopping. If consumers enjoy their online shopping experience,
they have a more positive attitude toward online shopping, and are more likely to adopt
the Internet as a shopping medium.
Enjoyment
Next to the evidence for the critical role of extrinsic motivation for technology use
(Hirschman and Holbrook, 1982), there is a significant body of theoretical and empirical
evidence regarding the importance of the role of intrinsic motivation ( Venkatesh and
Speier, 2000). Intrinsic motivation for Internet shopping is captured by the enjoyment
construct in our framework. Intrinsic value or enjoyment derives from the appreciation
of an experience for its own sake, apart from any other consequence that may result
(Holbrook, 1994). Applying this to our research context, enjoyment results from the fun
and playfulness of the online shopping experience, rather than from shopping task
completion. The purchase of goods may be incidental to the experience of online
shopping. Thus, enjoyment reflects consumers perceptions regarding the potential
entertainment of Internet shopping. Childers et al. (2001) found enjoyment to be a
consistent and strong predictor of attitude toward online shopping. If consumers enjoy
their online shopping experience, they have a more positive
attitude toward online shopping, and are more likely to adopt the Internet as a shopping
medium.
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