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Abstract
With the explosion of the e-commerce in the past few years, distinct buying patterns
and preferences have emerged for specific groups and other demographics. These
patterns have been measured and collected by numerous independent marketing,
business and even academic studies to understand how consumers connect with
new technology. With the advent of the Internet and its related technologies as a
new vehicle for commerce, new models have developed. This paper lays the
groundwork with brief introduction of recent trends in e-commerce on people;
particularly its impact on women. This is followed by their general perceptions and
preferences of the online shopping including product and website selection. Each of
these e-commerce “generalities” will be compared to information amassed from
survey questions and open ended discussions with a small sample group of women.
It will also delve into favorable as well as negative website characteristics and sum
up the favorable elements into a description of an e-commerce website that would
suitable to the group being studied.
Introduction
The Internet’s impact on people has been profound; particularly with respect to
consumers, who are starting to use the Internet as a new medium to trade and
purchase goods and services. (Dillon, 1999) states that In the early years of e-
commerce, buying online was an erudite activity strictly dominated by “techies” and
semi-technology literate individuals and these individuals were mostly made up of 20
to 35 year old males. This demographic were more comfortable and in tune with
Internet’s capabilities. But in recent years, the numbers of females making the
technology leap to shop online is surging. Females are starting to harness Internet to
make their lives easier and efficient. The recent surge has generated all of sorts of
new data on women’s online buying trends, patterns and preferences.
Objective
These new trends are analyzed against a survey of ten women in the Faculty of
Information and Communication Technology at Limkokwing University of Creative
Technology (LUCT). The volunteers of this survey will be collectively referred as the
‘sample’. Using the answers harvested in the survey of questions, comparisons with
other formal research performed on similar demographics and some direct
observation of sample members browsing and making purchases online, this paper
will correlate the sample’s view online shopping against the formal research on
current online buying patterns of females.
Advancing two years later, yet another comprehensive study carried by the
ActivMedia showed sustained growth of women shopping online. The report showed
that only a third of new Internet shoppers who got online more than four years were
female and the previous year, twice that number. (Mintel, 2000) This report confirms
the increasing role of women in the online retail landscape. Women are increasingly
making purchases online where previously their presence was absent from retail
cyberspace. The Mintel report goes on to forecast that the new online presence of
women will eventually dominate the online shopping universe previously dominated
by males. (2000)
Research from GartnerG2 also presented European online buying has been soaring
as well. (2002) In fact, Visa Europe reported that UK consumers spend more online
than any other country in the EU. However, all EU countries enjoyed doubled
Internet spending. (Jaques, 2004)
Although the EU data did not discriminate between genders, it can be extrapolated
that increased global buying will yield a proportional increase of women buying
online as well. The E-commerce and Development Report prepared by UNCTAD has
suggested that advanced markets like the US and Europe are “converging” when it
comes to consumer’s participating in shopping online. (2003)
The report limits its accuracy of online shopping data to only developed countries
since information is scarce or unavailable. For instance, data about ecommerce in
Africa does not exist, so there is no way to measure Africa’s contribution to global
ecommerce. It has been established from numerous marketing research studies that
women are playing a larger role in e-commerce and will close the gap against males.
How did the sample compare to these statistics?
From the interviews, it was discerned that the respondent’s who had the most
experience in online shopping were also early adopters and users of the Internet. An
expansive survey done by UCLA’s Center for Policy Communication identified
Internet purchasers waited months to several years before buying online. About half
of the respondent’s in the Internet report waited more than two years before making
an online purchase. (Lebo, 2002) This is in alignment with the remaining 3
respondents of the sample. Those respondents are fairly new to shopping online with
only 1 year or less of experience in online shopping. Although, they’ve shopped
online only in the past year; all of them were aware of the ease and popularity of
online shopping among friends and family.
All the members of this survey reported to use email, chat and personalizing
browsing at least once a day. The question of frequency of online shopping needs to
be clarified and solidly defined. For instance, the respondents reported not shopping,
meaning not purchasing anything online on a weekly basis, but admitted to browsing
products online or “window shopping” online at least on a weekly basis. The activity
of browsing not only entailed visiting personal sites of general interest and
information, but included perusing sites of various online retailers, auctions and
merchandise intermediaries. If the definition of online shopping encompassed
perusing merchandise online, then the frequency rate of shopping dramatically is
increased. Instances where the respondent did not plan to purchase or did not
anticipate making an online purchase; the act of browsing and aggregating
information about a certain product of interest increased the likelihood of the
respondent’s desire to acquire that product and thus make an online transaction.
Strict definitions and semantics aside, what about users’ actually purchasing
merchandise through the Internet? A joint survey prepared by an Internet customer
service provider, PeopleSupport and market research firm, NUA measured that
almost two thirds of Internet users who shop more than once a week are women.
(Cox, 2000)
Contrasting the high numbers cited PeopleSupport and NUA survey; all the
members of the sample group for this study did not shop as frequently as once a
week. Most of the members who have already bought something online reported
buying items online at least 3 weeks to 4 weeks to as long as 6 weeks. One
member, who happened to be one of the early online shoppers, shopped more
frequently than the others. She acknowledged that she purchased groceries online
approximately every two weeks from Tesco’s delivery service.
The sample group’s frequency of buying something online is still higher than
consumers using print catalogs to buy products. For instance, Direct Marketing
Association estimated that catalog users purchase approximately four items
throughout the entire year. (2002) The sample group exceeded these estimates.
How does this play out with the sample group? When presented this question: Why
they buy online, rather than using other sales channels to make the purchases, their
answers were practically similar. Not surprisingly, the answers provided by
respondents for the purchasing online are common. Convenience, time saving and
prices are the primary reasons for purchasing online.
Importance of the reasons varied with more than half of the respondents answering
convenience automatically coming to mind. Although price was another major factor
rounding out the remaining reasons, it was mentioned the least. When pressed for
the reasons given to why price didn’t hold much relevance was because the
respondents tended to do a lot more comparison shopping and are highly confident
in finding comparable, if not lower prices on similar products from direct sellers and
store vendors. When posed as to why they don’t go and scout out those lower prices
from physical stores, the answer they gave almost unanimously was that they didn’t
have time. Here is where the time issue intervenes because a lot of time would be
required to find those bargain prices from direct or vendors; therefore time saving
trumped price as a key reason among the sample members.
The psychology of groups and organizations are beyond the scope of this paper;
however, it is worth mentioning the power of peer influence as a reason for buying
online. Six of the respondents mentioned that they bought a product online simply
because it was suggested by a friend or an acquaintance to buy it online. With the
exception of peer influence, the reasons for buying online in this survey are
congruent with other independent studies of online buying behavior and patterns. For
instance, a joint study conducted by MSN and Millward Brown IntelliQuest found that
60% of women believe the Internet is convenient and saves time. Price is not
mentioned. (Microsoft, 2001)
Other reason mentioned by the sample members include: no sales pressure from
sales people, the privacy associated with Internet shopping and product availability.
The UCLA Internet report is more extensive where it investigated the purchasing
habits of experienced and inexperienced users. The study found that seasoned
users were more likely to buy books, pharmaceuticals, computer equipment,
software, electronics, food, cosmetics, DVDs and children’s goods, whereas new
users were more inclined to purchase items like: clothes, CDs, jewelry, hobby items,
furniture and cars. (Lebo, 2002)
The sample group for this study had mixed results when surveying the things bought
online. Figure 1 on the Appendix 2 shows the results of products bought by the
sample study. It reveals a cornucopia of products purchased online but not deviating
too far from the collection of products identified in the UCLA report. Airline tickets
made the top of the list as the most common product bought online by all ten
respondents.
Books were mentioned by eight of the respondents and DVDs were mentioned by
four of the respondents. Women’s accessories, particularly handbags ranked among
items purchased four of the respondents compared to women’s clothing which was
mentioned by only two of the respondents. Three of the respondents purchased high
margin durable goods (i.e. laptops and fridge) online whilst only one of the
respondents referred to earlier purchased perishable goods (groceries) online.
Mobile telephones, either used or new were also mentioned as another popular item
bought online. Four respondents bought mobiles without contracts. One bought with
a contract attached to the purchase of the online.
Many of the respondents displayed more comfort and satisfaction with well known
and established e-tailers like Amazon. On the other hand, the experience of
shopping at other, lesser known e-tailers was a little more agonizing to a few of the
sample members. The distressing experience was partly due to merchandise
availability, poor site layout to search for items and questionable delivery times.
Respondent’s also had anxiety based on the unknown reputation of the website
visited. The unknown reputation of an online e-tailer links to security issues. The risk
of submitting sensitive, confidential information about personal information, credit
card or bank account information when committing to the transaction to a
unidentified party was the single most issue where respondent’s pointed out in the
survey. Yet after the transaction and delivery the respondents had a general level of
satisfaction on the experience.
Beside well known web e-tailers, auction sites are particularly popular and have an
excellent standing among the respondents. Most of the sample members find the
experiencing of browsing a plethora of assorted merchandise that even the
prominent e-tailers, department store, or so called “mega-malls” could not offer. To
show the respondents genuine interest and continued pleasurable experience
shopping on online auctions, several of the respondents admit spending countless
hours perusing various products.
Auctions are not completely immune from criticism. Respondents stated only few
downsides of auctions in general and are not particular critical of online auction
experience. The respondents revealed that the experiencing of losing the bidding
war in the auction for an item of high personal value or the amount of time required
to track positions of respondent’s bid against multiple challenging bids.
Information of popular website ranking reflects high publicity, high volume visitors,
new customers as well as repeat customers. This translates to continued growth for
these ‘pure play’ businesses. So how does the data match up with the sample
survey group?
The data provided by various ranking websites harmonize with the respondent’s
identification of websites they consistently visit and shop. Almost unanimously, the
respondents identified Amazon as the site they have made at least one online
purchase on. Eight of the ten respondent’s in the sample survey identified eBay as
another primary shopping site.
Full service and regional travel booking websites such as Expedia, EasyJet, RyanAir
and Travelocity are also frequently visited by all the sample members largely
because most the members of the survey are frequent travelers. Even specific
airlines such as British Airways and other more in RSA to name a few were
mentioned as sites visited.
Lesser known e-tailers visited by the survey group could not be recorded in this
study because most of the respondent either didn’t remember either the name of the
website name or the URL. In some of the cases, the respondent’s accessed another
web portal to be directed to the site. Other cases, the member used a popular search
engine to find the specific product of interest.
The sample had different views of what they look for in an e-tailer. The core factor
was low prices trumped all other factors followed by product availability,
recommendations from peers or family members with ease of purchasing as the final
five factors. Surprisingly, other factors mentioned but not breaking the top five factors
were security issues.
What qualities do you look for in an online retailer?
There were four other main areas an online retailer should have emphasized by the
sample. These areas are: product variety, product specialty, site reputation,
customer support and service, and great web design. Here is a synopsis of what was
collected from the discussion sorted by category about what a great e-commerce site
should have:
Website elements disclosed by the sample members were use of color and graphics
on web pages. Problems with background color conflicting with foreground color
which could make it difficult to read the text have been experienced on some sites.
This goes along with ensuring that the font size is visible without the user changing
their browser settings or the color of the background does not conflict with the
foreground. Website fonts and other display elements should always consider all
types of user’s have varying degrees of vision acuity.
Interactive and color graphics is a popular requirement among the sample, perhaps
the most important criteria of any online retailer. Graphics was notably more
important on sites where second hand merchandise and apparel is being evaluated.
Respondents mentioned that sites can also carry too many interactive elements as
well. A balance approach to graphics and hypermedia should be employed. Finding
products should be easy. Respondents highlight ease of page navigation and
searching features as another important feature a website is required to have.
Navigating large, complex sites like eBay and Amazon would be painstakingly slow
and frustrating if consumers had to traverse multiple nested pages to locate the item
of interest.
Another area of improvement with the sample members was use of advertising.
Lately it has become a hot issue to all consumers over the past few years. The use
of intrusive advertising such as pop-ups and floating banners make visits to an
annoying experience.
There currently no conventions on web page design in the industry. Various layout
formats, interactive features, and product display pervade multitudes of e-tailing
home
pages making page navigation and user functionality difficult. Jakob Nielsen of
Nielsen Norman Group (NNG), a world renowned authority in web usability provides
rules to think when designing technology around and for people. Nielsen proposes
that a visitor or consumer visiting a site should feel intuitive, familiar and functional.
(see Appendix D)
Conclusion:
Based on the information collected from this small sample study, all the best
elements of e-commerce, does not guarantee consumers will visit or remain loyal.
But looking at what they want and their satisfaction levels of other well established e-
tailers such as Amazon and eBay who have already invested significant resources to
understand what consumer’s needs, wants and desires. Perhaps it would be useful
to emulate these established pure players since they have been and continue to be
highly successful as retain high marks for customer satisfaction.
(1) Mind Share = the percent of Internet users for whom the site first came to mind
when asked to think of Web sites that sell products or services over the Internet
(2) Purchaser Share = the percent of online buyers that bought from the site
Brand Strength
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