Chapter 2: Literature Review

Introduction
This chapter provides information derived from the relevant literature regarding the area of this
study. Literature review will focus on online shopping its trends in UK. Online and offline
shopping will be discussed along with online shopping experience. Elements of perceived
benefits of online shopping will be discussed. Finally, buying behaviour of the customer will
discussed.

2.1. Online shopping (OS)

A process of purchase and sale of products on internet is defined as online shopping. Online
shopping is a process of purchasing different kinds of online products and services at global
level. In term of use of internet, it is noted that internet has become the fastest growing aspect
that has gained great attention from customers. Collection of online information and data is one
important part of the decision that is taken by customer of purchasing online products. Five
different steps are involved and associated with the process that have certain level of similarity to
traditional shopping behavior of individuals. When a need for some product or service is
recognized by potential customers in the market when a need is created among individuals then
they go to the internet for searching and purchasing required set of products and services (Pham,
Do Thi and Ha Le, 2020). Information regarding the products is required by customers but they
expect that the information will be accurate and reliable. When a confusion is created among
them for different alternative options then they evaluate all of these options and choose the one
that is best for them in term of meeting their need. Consumers psychological state is one
important aspect in term of Online shopping attitude of people because it is factor of taking
decision of online purchase on the internet (Chang and Meyerhoefer, 2020).

The needs and wants of consumers are more efficiently met by online shopping. Consumers can
easily have knowledge regarding the brand’s availability, quality, product prices and
specifications and could do easy comparison with other brand’s products. Hence, increasingly
intelligent purchasing decisions can be made in a manner not possible by shopping
conventionally. Furthermore, anonymously purchasing can be done that is of more convenience
in case of personal products’ shopping since conventional shopping of those might not be
comfortable (Bhatti, Saad and Gbadebo, 2018). Consumers can now easily purchase routine
products like groceries online, hence crowded places can be avoided. Nowadays, it appears that
people, specifically, the younger adults now have more awareness of fashion and personal image.
For such consumers, the experience of shopping is simply an activity of enjoyment and leisure.
However, even these consumers value the product quality and good service standard. With
regard to shopping online, the consumers will have increased satisfaction if a user-friendly
website is made by the company making the online shopping experience through it a stimulating
one (Strategic Direction, 2012). Often through lower prices, the marketing is done by online
retailer shops. For instance, this tactic is used by Amazon.com for attracting customers farther
from conventional bookshops. Such online retail shops that are low-priced lead to a significant
customer increase. The prices can be looked at by the consumers and alternatives can be seen
during online shopping (Grashuis, Skevas and Segovia, 2020). The comparison be done by a few
clicks only when shopping online through Yahoo Shopping. Moreover, on websites of online
shopping, the reviews of other consumers can be accessed helping in guiding the decision of
purchasing. English scientist Tim Berners-Lee was the person who had created Web server and
browser for the world for the first time. This had been available on commercial basis after a year.
Some other milestones have been followed soon after that period such as some of these included
the launch of Secure Sockets Layer (SSL) that was one protocol that had issued in 1994.
Communication is one aspect based on which this protocol is encrypts between the server of
website and browser of users and in term of safe online ecommerce it has become a critical
building block for the company. it is related with use of some kind of sensitive data and
information such as information of credit card that is exchanged between systems. Omnichannel
retailing in 2021 is considered as a new way and standard and online channel has become the
fastest growing channel in retail sector (Sharma and Jhamb, 2020). A greater level of variation
has been presented by this between different categories of products and services such as these
include national regions, countries, age, gender and other aspects. In term of increasing level of
popularity of online shopping a clear level of trend has been witnessed. In July 2019, it has been
stated by consumer research business, a German market and Statista that in 2018, 21.8 percent
has been accounted for in e-commerce sales for all sales in retail sector in the UK. It is expected
that by end of 2024, this increase will reach to 32.1 %. A staggering number of things are now
purchased by customers online (Teixeira et al., 2022). There is many options of buying virtually
is available for customers such as insurance, medicine, food, drugstore products, apparel,
household items, electronics and more can be purchased by customers online. It is considered as
more convenient due to which they are doing it on frequent basis. For instance, in context of
visiting website of the company and selection of items that are needed by them it is noted that a
quick Google search is one option that is available for customers (Ali, 2020). Virtual shopping
basket is then used in perspective of keeping the items in these until the time and situation tool
that buyers is ready of finalizing the transactions. Because of Covid-19 most of the customers
have been moved to online shopping and it means that customers may stay in comfortable and
healthy situation due to reason that online shopping make it possible to do shopping from their
own homes. One important aspect of considerations is that the brick and mortal stores are still
working instead of and along with online retailing. Physical retail establishments give different
level of experience to customers in comparison to online shopping experience. Social interaction,
sounds and smell are some important considerations in stores that are difficult to be replicated
online. (Eger et al., 2021). The consumers do not have to travel to crowded shopping malls for
buying. Convenience is also found by the consumers in having an easy access to a bulk of
information regarding the goods and services they have their interest in, through online
shopping. This can be used by the E-retailers for their benefit, creating consumer loyalty for
themselves. There is an increased acquaintance of online shoppers with convenience instead of
experience of shopping. The most significant aspect for them is convenience while purchasing
goods since a limited time is there for them and goods’ purchasing without physically touching
them is not something that bothers them (Ladhari, Gonthier and Lajante, 2019).

2.2. Online vs. Offline Shopping

In conventional shopping, key factors impacting the customer’s perception are the atmospheric
characteristics. The characteristics also determine whether or not the shopping experience is
pleasurable for the customer (Akhtar et al., 2020). On the other hand, in online shopping, the
included environment has a significantly narrow experience range and some technical
capabilities are required for functioning in setting such as the one in online shopping. The
experiences of online shopping cannot be perceived by all the senses (Roggeveen and
Sethuraman, 2020). Hence, for the customers who do not shop online, the main explanation is
because of the limit present in the involved experience factors. Yet, there are some interactions
and merits in online shopping bringing exciting experiences for consumers (Moon, Choe and
Song, 2021). Although there are several benefits of online shopping, consumers are still there
having several reasons for its avoidance (Koch, Frommeyer and Schewe, 2020). Website
navigation can be tricky for the consumers not having familiarity with this shopping method and
they lack trust in internet for making safer transactions (Wong, Wong and Ke, 2018). Hence,
they do receive an edge since nowadays, having complete info of the product is wished to be
acquired by the consumers prior to spending money for purchase (Kumari, 2019). Risks are less
willingly taken by offline shoppers compared to the online shoppers. The risks taken by the
online retailers have been talked about by several authors: the doubtfulness regarding the online
transactions, in case of data reliability and authenticity organizations have to remain on-guard,
and insufficient legal material is present for retailers online that can be risky in case anything
goes undesirably during purchasing online (Eger et al., 2021).. The method for measuring the
trust of e-shoppers regarding the online business of retail have also been discussed by the authors
as they explored: the credit cards’ security, the shopper’s private details and the website’s
reliability (Suyanto, Subiakto and Srimulyo, 2019). Such risks, particularly relevant to security,
do lead to the loss of potential customers by online retailers (Pham et al., 2020). In addition, a
stable internet connection must be there for the consumer to shop online and computer, web and
online shopping knowledge must be possessed by the consumers (Liu et al., 2020).

2.3. Online Shopping Experience

In terms of shopping and consumption it is noted that an important part is termed as experiences.
It is a common finding that customers are not always looking for purchase of those products
because some of these are also interested in having a pleasure feeling when they come and
purchase the products based on their shopping activities (Suyanto, Subiakto and Srimulyo,
2019). The shopping goals of customers is one important and significant factor based on which
this experience of customer can be affected. Based on goals of shopping it is noted that certain
level of affect is created by this experience (Stouthuysen et al., 2018). In terms of evaluating
shopping experience it is noted that motivation of online shopping is one important factor that is
considered and focused (Izogo and Jayawardhena, 2018). Creation of hedonic significance is one
important aspect that should need to be focused based on developing and maintaining a good
experience so that better relationship with customer can be attained (Barari, Ross and
Surachartkumtonkun, 2020). Creation of hedonic significance is vital for strengthening the
customer associations through good shopping experiences. This experience includes engagement
of the certain aptitude of the customers for satisfying and creating value during interaction with
organization, the goods and consumers (Eneizan et al., 2020). The same way, a positive
environment has to be established by the online retailers for consumers shopping online
(Lecointre-Erickson et al., 2021). During online shopping, the consumers are computer users also
apart from being the online customers (Wong and Wei, 2018). Online shopping has a much
interactive environment. The website’s content is crucial in terms of its accuracy and relevancy
(Singh, 2019). Also, the website’s design is of significance in capturing the attention of the
customers. Other factors making up the online shopping experience include good customer
service, low-costs, plainly stated terms and exchange and return policies, and easy navigation
(Yin and Xu, 2021). The concern of consumers regarding their safety and security can be
handled by maintenance of adequate communication services provided by the company (Liu et
al., 2020).

2.4. Hedonic vs. Utilitarian

Based on utilitarian and hedonic motivations it is noted that certain level of guidance is given
regarding choices of customers regarding the products and services (Zheng et al., 2019).
Experiential is the name that is used as the hedonic consumption is one important aspect that
could be understood as an experience at multi-sensorial level based on which affections and
emotions could be elicited with use of product and enjoyment, fantasy and aesthetical perception
are involved in this process (Li et al., 2020). On the other hand, it is noted that Utilitarian
consumption is one important aspect that is considered as taking place, oriented toward purposes,
and instrumental place in accordance with usability and applicability associated with the product
(Simangunsong, 2019).

The product’s actual value is not valued by some consumers compared to the gained satisfaction
from online shopping (Picot-Coupey et al., 2021). The products of clothing are viewed as
hedonic and there is more involvement of young adults in navigating the clothing shops online.
Not only do they have a concern related to the product’s price or quality, instead, they are also
concerned about the visual interactive aspects of the website (Vieira, Rafael and Agnihotri,
2022). Shopping nowadays have now emerged as a hobby of numerous people. It is now viewed
as method for escaping from the busy routines and forgetting about the life’s troubles. One can
notice the hedonic incentives when an emotional attachment to the internet shopping experience
is felt by the consumers. ‘Impulsive buyers’ is the name that can be given to these consumers
(Lee and Kim, 2018). As they visit the website of online retail, they might not have the actual
motivation for buying something instead by having a positive experience, can they decide for
purchasing the product. On the other hand, more logic is present among utilitarian buyers (Sheth,
2020). They do not shop spontaneously; the reason of their shopping is to fulfill the requirement
and a thorough research regarding the product is done prior to its purchase (Dutt, Singh and
Joshi, 2020). It has been found by e-commerce research that there is a positive relation among
intentions of online (re)purchase and hedonic motivation (Suyanto, Subiakto and Srimulyo,
2019). Moreover, rational motives have been found to drive the clothing purchases instead of
emotional ones. Furthermore, fashion shopping is perceived as a leisure activity by young adults
underlining the significance of enjoyment and entertainment as purchase intention’s determinants
(Eger et al., 2021).

2.5. Perception of Online Shopping

The perception of the consumers during online shopping is another considerable factor. As the
experience of the consumers surpasses their expectation, the chances of showing loyalty for the
particular online shop increase a lot (Pawełoszek and Bajdor, 2020). Several features form the
basis of this satisfaction like: the degree of fulfilling experience, level of smoothness in
transaction, and the interaction ease. There will also be a difference in the perception of shopper
based on the product type that is meant to be purchased (Van Kien Pham and Le Nguyen, 2020).
Products purchased with experience (like clothes) will differ from those requiring searching prior
to purchase (like books). The perception of online consumers will differ based on the product
type since the risk factors for every product differ (Hao, Wang and Zhou, 2020). For some,
conventional shopping is more fun and smooth, hence they avoid shopping online. Their mood is
improved as it takes the form of social activity that can be done with their friends (Singh, 2019).
The perception of online consumers can be affected by other factors like: level of market
exposure, competitors’ position in the market and the ambiguity of market (Marathe and
Gawade, 2020). In comparison, greater attachment with online shopping is owned by generation
Y spending time in looking and fantasizing products available online (Lee and Kim, 2018). They
have much focus on sales promotions and impacted by the celebrities in terms of fashion trends
(Yi, 2022). It’s been found through recent research that minimum of an hour daily is spent by
half of respondents on websites of online retail (Gopinath, 2021). Also, there is a finding that
men’s participation in online shopping has increased with men’s fashion. The online shopping
concept is now overall being accepted by the consumers and a continuous growth is observed for
the phenomenon (Yin and Xu, 2021). But it is noteworthy still, conventional shopping is equally
related to the retail sector (Koch, Frommeyer and Schewe, 2020).

2.6 Perceived benefits

The benefits that people can perceive during online shopping have been perceived by several
studies. The key factor considered was consumer experience (Forsythe et al., 2006). Five
differing variables have been identified in this article related to the benefits perceived.

2.6.1. Awareness of Utility (AU)

The online shopping intention is positively affected by the AU. Several elements have measured
the AU in online shopping related to time effectivity, the delivery and take away service, and the
direct interaction’s reduction. During online purchase of products, tardiness will not be faced by
consumers in traffic participation, the effort to have a parking space, and payment waiting, and
hence online shopping through internet will be preferred by individuals being hesitant in
interacting socially (Mitsis, Tsiropoulou and Papavassiliou, 2022). Since the outbreak of SARS
many years ago, there has been an observance of the fact that services of home delivery and the
discouragement of consumers for on-the-spot eating tend to be done by restaurants, are enforced
for supplying and implementing these rules due to awareness of disease spread (Martin-
Neuninger and Ruby, 2020). Thus it can be stated that the epidemic of COVID-19 has much
similarity with SARS yet the danger level is increasingly higher. Hence, the awareness of people
to wear masks has been further addressed in the study for measuring the variable AU. The
following is the Hypothesis 1 made in accordance with the context:

H1. A correlation exists among the OS intention of British consumers and the AU with regard to
the pandemic COVID-19.

2.6.2. Awareness Easy to Use (EU)

The online purchasing convenience or simply put, the ease in the usage of services of online
shopping positively affect the consumer’s intention for selection of this shopping mode. Several
studies have concluded this fact. The perceived ease of use awareness can be defined as the
comprehensive electronic services’ serving capabilities would assist in increasing the service
value together with the brought up other benefits for customers (Vecchio et al., 2020). Apart
from this, ease of purchase through internet would be felt by expert consumers able to
proficiently use the modern technology and possibly increased online shopping might be
preferred by them. the online shopping’s ease and convenience also have relevance to the matter
of goods’ exchange and the capability of accessing employees’ advice during the process of
selection, as a risky e-shopping experience aspect in comparison to conventional shopping
(Hashem, 2020). The study proposes Hypothesis 2 based on above perspectives:

H2. A correlation exists among the OS intention of British consumers and the EU with regard to
the pandemic COVID-19.

2.6.3. Awareness of Marketing Policy (MP)

The strategy of marketing and the policy of marketing of a store online on a website can
captivate consumers if the presentation and operations is made easy for them to approach. A
significant role is played by consulting staff in supporting the online shoppers’ experience since
many of them might face embarrassment during online purchasing because of lacking social
interaction with sellers or the professional help from the employees (Briain et al., 2020).
Numerous businesses in the UK, particularly the sites of e-commerce, have put-forth diversified
promotions in service for encouraging consumers for online shopping in pandemic COVID-19
(Van Kien Pham and Le Nguyen, 2020). Additionally, further policies of marketing are also to
be empathized in the study relevant to consumers’ supporting specifically for goods’ returning
and also the care policy of after-purchase in the pandemic COVID-19. Hence in the
measurement survey, the authors referred to this matter. Hypothesis 3 has been formulated on the
basis of the problems regarding policies of marketing in terms of COVID-19:

H3. A correlation exists among the OS intention of British consumers and the MP with regard to
the pandemic COVID-19.

2.5.4. Awareness of Price and Cost (PC)

The costs arising from the product buying through online shopping and price of products are
some other factors that affect the buying intentions of the consumers since the prices can be fully
compared by them among several products and also between various websites for making the
final decision of purchase. the decision to whether or not purchase the product will be made by
the consumers based on the price whereas it is the consumer experience is affected by the costs
that incur from product purchase from the internet (Diaz et al., 2021). Apart from this, some
other costs are also put forth by this study relevant to the online shopping that can affect the
consumers’ shopping experience like the software used for service of e-shopping or the
applications’ installation costs, or price of payment of service of internet during the processing of
purchases’ payment (Nguyen, Armoogum and Nguyen Thi, 2021). Hence, based on the above
notion, Hypothesis 4 was formulated:

H4. A correlation exists among the OS intention of British consumers and the PC with regard to
the pandemic COVID-19.

2.6.5. Affection of Society (AS)

The intention of consumers for choosing to shopping online is influenced by the information
obtained from the society and community, particularly the complaints or the feedback from the
individuals who had previously purchased and used the particular product (Hyden, 2020).
Therefore, Hypothesis 5 analyzes how the social impact becomes a reason for the consumers’
response to online shopping services during the pandemic COVID-19:

H5. A correlation exists among the OS intention of British consumers and the AS with regard to
the pandemic COVID-19.

2.7 Awareness of COVID-19 (AC)

Ever since the COVID-19 has been proclaimed a global pandemic by the World Health
Organization (WHO) and collaborative efforts globally have been asked by the WHO, numerous
nations have developed dire policies in an attempt to avoid the disease spread (Hékimian et al.,
2020). Particularly when certain directives of the Government issued social lockdown or social
distancing policies, there must be an alteration in the social activities for adapting to these
challenging times. It led to the perceptions and views of the people regarding the disease that
would have a direct effect on their daily lives and activities including shopping (Ha et al., 2020).
Hence, the focus of this study is the pandemic COVID-19 while considering the COVID-19
awareness as a moderating variable that can point the difference in customer behavior regarding
shopping online (Spiro et al., 2020).
Gradually there is a growing awareness in people that staying indoors should be preferred and
the needs be minimized relevant to social interactions like going to restaurants for meals or
utilization of entertainment services (Teslya et al., 2020). The public transport should be
avoided, remote working should be adopted and foreign traveling be stopped (Acharya et al.,
2020). The solution can be readily implemented by the people as long as they are not overly
stressed and worried (Tran et al., 2020).

As per the research on Amazon shopping in Italy, the people’s tendency bend towards online
shopping is more since the outbreak’s awareness (Saud, Mashud and Ida, 2020). Because of this,
there has been a rapid increase in the Amazon’s sales in the duration of state-official closures and
social distancing (Ratnasari et al., 2021). Due to this, it can be stated that during the pandemic,
the suitable alternative is that of online shopping since the product consumption can be
maintained by the consumers while simultaneously avoiding the disease spread (Pham and
Yazdani, 2021).

Because of this the variable of COVID-19’s awareness to the model have been proposed by the
authors who also investigated how can this variable affect the shift in online shopping behavior
of consumer, hence the formulation of Hypothesis 6: (Schmidt et al., 2020)

H6: The OS of British consumers have a moderation of AC with regard to the pandemic COVID-
19.

2.8 Buying behavior

An individual who has certain level of interest in purchasing product of an organization with aim
of meeting certain need or desire which is developed is termed as Consumer. The product is
purchased and then disposed off in process of consumption (Linh et al., 2021). A typical utility
of customers in this perspective depend on the level of consumption of industrial and agricultural
goods and products, and services and wealth and housing. It is important to consider that no two
of them are same because of the reason that some kinds of internal and external factors are
associated with it to influence the individuals (Min et al., 2019). The consumer behavior is
formed based on involvement of these kinds of factors. Consumer behavior is considered as a
constant and important process of making decision that is related with search, purchase, use,
evaluation, and dispose of products and services. Social issues are commonly resulted into
creation of the macro consumer behavior but certain kinds of individuals factors are researched
in term of reaching the factors of micro consumer behavior (Pantano et al., 2020).

There are three groups of the approaches based on which the consumer behavior can be
explained. The first one of these is physical based on the consideration of level of relationship
that is existed between the behavior and psyche of the consumers (Krishna, Ried and Meixner,
2021). The second is based on the consideration of sociological approach that is related with
reaction that is given by customers in various kinds of situations and perspectives and how the
influence is created on behavior because of different kinds of social occasions. It is also related
with considering basic knowledge of evaluating economic approach and social leaders so that
proper understanding can be developed regarding micro economy. In this perspective certain
level of requirements are defined by customers in term of consideration of their level of
requirements (Ali, 2020). The interests of customers are traded and confronted on the market. It
is a fact that there are differences present among individuals because of the reason that
individuals are not the same and same perception is not always same regarding the given
situation with certain kinds of negative effects such as some crisis and economic downfall
(Ahmed et al., 2020). Risk perception and risk attitude are considered as two important factors
based on which customer behavior is modeled in crisis. Interpretation of customers is reflected
by risk attitude regarding the content of risk and the way she or he dislike the risk content. The
interpretation of the consumer is one important aspect that is reflected by Risk perception and it
is related with the chance of being exposed to content of the risk (Neger and Uddin, 2020). An
economic crisis has resulted into creation of some of these risks and changes in perspective of
consumption behavior. With consideration of certain kinds of personality characteristics, it is
noted that it can be moderated. Some dimensions are included in perspective of these
characteristics of personality such as level to which customers are materialistic, value conscious
and risk averse. Tien et al., (2021) study had reveled behavioural changes that are resulted
between customers in crisis time with certain kind of significant level of changes in pattern of
utility. During crisis it is noted that certain kinds of new trends have been identified by a study
which is based on including demand simplification due to limited level o offered during the time
of crisis. These are some trends that are expecting after the crisis but greater value is offering by
making it simpler. The impact of the recession in regard to trends and attitudes is considered as
critical aspect. the recession is resulted into creation of certain level of impact because recession
advances some trends (Nguyen et al., 2021). The demand for simplicity is considered as the most
central trends and it present value-oriented products and services and uncomplicated aspects are
expected by customers based on which lives can be simplified and enactment of a company is
key area of focus of the company. during crisis times the change in consumer behavior is
occurred that is resulted into exploring behavior of customer during crisis of Covid-19 (Adibfar
et al., 2022).

Conclusion
The product is purchased and then disposed of in process of consumption. The consumer
behavior is formed based on involvement of these kinds of factors. Consumer behavior is
considered as a constant and important process of making decision that is related with search,
purchase, use, evaluation, and dispose of products and services. Convenience is also found by the
consumers in having an easy access to a bulk of information regarding the goods and services
they have their interest in, through online shopping. This can be used by the E-retailers for their
benefit, creating consumer loyalty for themselves. There is an increased acquaintance of online
shoppers with convenience instead of experience of shopping. The most significant aspect for
them is convenience while purchasing goods since a limited time is there for them and goods’
purchasing without physically touching them is not something that bothers them
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