What Influence Shoppers, Research Paper Example

In the past decade, the Internet has influenced our life dramatically. With the highly developed worldwide Internet, our behaviors have been forever changed. We can now use e-mail, social network in order to keep in touch with our friends instead of writing letters, and search the information online rather than go to libraries. Among these changed behaviors, there is one thing that I thought very important and would like to investigate further; peoples’ shopping behaviors. Traditional shopping provides consumers with real visual and touchable products, and also offers an environment to try on items; however, it has limitation of time, locations, price comparison. These factors have caused people to gradually change their behaviors and shop online. According to Li, Na and Ping Zhang, “online shopping behavior (also called online buying behavior and Internet shopping/buying behavior) refers to the process of purchasing products or services via the Internet” (508). Recently, the Internet users have brought about new electronic commerce markets, which caused the numbers of online-shoppers to grow rapidly. Nielsen Global Online Survey shows, “more than 85 percent of the world’s online population has used the Internet to make a purchase—increasing the market for online shopping by 40 percent in the past two years” (“over” par.1). Although more and more consumers prefer to purchase online, their online shopping behaviors still can be affected by the amount of discretionary time, marketing persuasion, and privacy factors.

Product Information & Comparison

The internet is a conglomeration of information sources, companies, stores and individuals that are marketing a variety of products. The manner by which individuals collect information and shop is changing because of the technology and ease of shopping that has been created by the internet. According to Bellman, Lohse & Johnson, “shoppers use the internet to find information about products “(34). This can be especially true for products that are costly, because of the concern for getting the best product. The internet allows consumers to find a product and then do a comparison for several brands or similar products, which increases the shopper’s informational level. This increased information provides additional resources and allows shoppers to make a more informed decision about the products that they purchase.

The internet also allows shoppers to learn more about products or how to use them before making the purchase. In some cases an online merchant will have videos that allow shoppers to watch demonstrations of products. Not only is this convenient for the consumer, it also allows for other potential uses. Shoppers can use those online videos or information sessions to find additional products or methods of use. It basically gives shoppers ideas and provides them additional resources, which increases convenience. In the last several years video and how to manuals have become popular for consumers (Bellman, Gerald, Lohse & Johnson 35). The reason for the popularity of the internet is for consumers to find information and learn which can be accomplished by videos and product information sites.

The internet gives people all kinds of opportunities. They can shop, search for information online and even compare pricing. Today, most people are very busy and need to reduce the amount of time they spend in areas of their lives. While shopping is supposed to be enjoyable, many people look for ways to save money and have a choice in products. Shopping online gives people the ability to get products from anywhere, which allows them more choices. Between pricing, convenience, increased choices and privacy, online shopping is a win-win situation.

In many cases shopper will have reservations or doubts about a product that they are about to purchase. The benefit of shopping online allows them to look for information about products and read about the benefit of the products before they make a purchase. This gives a person more peace of mind about spending their money and helps them to feel that they are making an appropriate or good choice (Webb 54). This has become more of an issue because of the slowed economy and financial hardship that so many Americans are suffering from. In the store, shoppers can see and touch the items, but online they can see the good and bad of the product. The article written by Bellman, Lohse and Johnson, also says that about 21% of people say they spend more than 20 hours looking online (35). Spending that much time online allows them to look at products and be influenced to make their purchases online. Having more time to look for items also allows people to do more shopping online. It is easy to surf the internet because it is so readily available in today’s world. There is even free Wi-Fi internet in airports, shopping malls, coffee houses and many restaurants. This easy public access is in addition to the most common areas of home, work and even school, which gives people more time to shop. Boredom and looking online also is a way to influence shopper’s habits and online purchases. People that are looking for entertainment are more likely to surf the internet and find products that they are interested in purchasing. While shoppers can also browse regular malls or department stores, the fact that online shopping is convenient helps a lot. Shoppers can surf the net or browse products or online stores from the comfort of their home. They are not required to have their make up on or get ready to go to the store or have their children in the store with them while they are trying to make purchases or shop.

Marketing Tactics

Marketing tactics have always been used to persuade people to purchase particular products. People are affected by the way things are portrayed, especially when there are reviews of the products from other shoppers. Companies are able to sell their products by playing on shopper’s emotions, wants and desires (Constantinides 112). The way a company talks about a product can make a shopper wants that product even more, but in the store there is no hype about the product. When people are looking for information, they are already interested in that product, so when the benefits are listed, they are more likely to make the purchase. The way that products are advertised can make a difference. Websites that are colorful, cheerful and promote positives of their products are typically more popular, which sales more products. People are greatly influenced in the way that a product is packaged, portrayed and marketed. It is easier for online retailers to use marketing techniques through websites to make shoppers want to buy the product than it is in a regular store.

Brand marketing is commonly used and found in both online and brick and mortar stores. Marketing can be completed through the use of colors, names or even creative slogans. This helps shoppers remember the product and when they have cute sayings or pretty colors, people are more likely to look at the product in a favorable way. The goal of any type of marketing is to have the shopper feel a connection (Constantinides 112). It is easier to have that connection online because not only is the shopper able to see the product, but they are also able to be influenced by many other marketing techniques online. Like noted above, the how to videos or positive reviews of other consumers helps persuades shoppers to go ahead and make the purchase. Websites are able to provide additional entertainment, information and drawing features to keep shoppers online. The use of reading material, videos and even additional products keeps shoppers entertained while on their site. The longer that a shopper is on the shopping website means the more likely that they are to make a purchase. Even if they click to another site or store online, they can always return to the online store. While they could also return to a shopping mall or department store for another look, people are less likely to keep going back to the store. They do not want to seem odd or embarrass themselves, so it greatly limits the amount of time that they will spend in the store or go back to the store.

Another part of branding or the marketing process is to examine or show how satisfied shoppers are with the products that they are getting online. If shoppers are not satisfied with the ordered product, they are less likely to return to the online store again. This could not only hurt business, but also send the wrong message to the public about customer satisfaction. Online retailers must be cautious about the quality of products that they carry to ensure that consumers are satisfied with their purchases.

More Choices

Choices are important for people in all shopping experiences, in the store and online. It doesn’t matter if it is groceries, clothes or jewelry, people like having choices. This is especially true for people that are in a higher income level (Kalmus 385). With a higher income level these individuals have a higher power to make purchases and are used to having more choices. They typically have additional access to internet shopping and online stores as well. With the increase in technology people can access the internet with their phones, home computers and other handheld or mobile devices (Lee et al 42). With the various ways of accessing catalogues, shopping sites and buying forums, shoppers can shop from virtually anywhere in the world. They are not limited to their own town or area of the country. They can search products and find things that are not available to them locally. Products can be shipped from anywhere in the world which gives shoppers the ability to have just about any product that they want, without ever leaving their home.

Another benefit of the internet related to shopping is the fact that there is unlimited self-space in cyberspace (Webb 54). Brick and mortar stores are not able to have an endless supply of products because of space constraints. While they can have warehouses, it increases the amount of overhead or financial expense that the store has. When the store has an increased overhead or amount of money that they have to spend, it causes them to raise pricing. Online stores are not limited by one or two brands manufacture either, as they are able to carry or offer products from all over the world. This greatly increases the type of products that are offered, at lower pricing, simply because of their lower overhead. In addition to the unlimited “shelf space” is the fact that online stores are not required to pay building rent or pay employees (Webb 53). It greatly reduces the amount of money that the company must pay in order to offer their product. Those saving techniques are passed onto the consumer through lowered prices. It is a basic financial phenomenon, the lowered amount of expense allows for lower pricing. Consumers shopping online can enjoy those lower costs and therefore drives many people online to shop, rather than heading to the mall.

Saving Money Online

Shopping online gives shoppers a lot of opportunities and the chance to save money. With the economy in a slowed state some are looking for ways to save money on products that they buy on a regular basis. Having several companies, competing for shoppers business, increases the amount of products and reduces the pricing. Even when the economy corrects and returns to a better position, about 71% of people say that they will continue using the internet to shop and save money (Rodriguez 2). Online, shoppers can compare prices; find good deals and even coupons to help them save money. This lets people get more for their money and increases their desire to shop for online products.

The mere variety of shopping outlets and stores online give people the opportunity to find the best price available. Whereas it would be exhausting to visit several shopping malls or stores it is easy to click on a variety of stores and find the best price. There are even services or stores online that will actually run price comparisons and help shoppers find the best deal. This saves money and allows the shopper to make additional purchases. For some saving money is a source of pride and gives them the ability to make additional purchases; however for many saving money is a way of life that has become a necessity in lieu of a down turned economy.

Shopper Privacy

Consumer privacy and credit safety has been something that has really become a problem in today’s world. Shopping online gives shoppers the ability to shop from their own home without others seeing what they are buying or looking at. It makes it convenient to make purchases and not worry about a friend or neighbor seeing their clothing size or what type of products that they use (Nehf 353). Buying online also gives the person a chance to take their time and make a wise decision. They are not pressured by a line or sales person trying to influence them through high pressured sales tactics. They have the chance to look at several products and even change to another company by simply clicking a new website. There is no punishment or discouraging from looking at lots of companies or different brands of products when shopping online. This makes it convenient and private for shoppers, which is a good benefit.

Another form of privacy that has been a concern with online shopping is stolen financial information. While technology has created a great way for shoppers to have additional choices and find better deals it also has some risks. Cybercrime is a leading concern because there are so many incidents of stolen identity and the misuse of payment information (Milne, Labrecque & Cromer 456). Shopping online requires making payments online and is typically completed through the use of a debit or credit card. Payment information is recorded and oftentimes saved on the online company’s website, which can pose a potential security concern. While most online company’s attempt to address the security concerns and enacts measures, there is still a risk to the shopper. The company employs a variety of software and protection to help keep shoppers personal and financial private with online shopping. One of the biggest concerns and problems for online companies is the ability to put shopper’s minds at ease, by reducing the perceived threat a financial breach (Milne, Labrecque & Cromer 456). While the same financial breach of information can occur in a regular shopping mall, people are more concerned and afraid of the breach of privacy.

In conclusion, shopping online has become quite popular through the various stores and options that are available through the internet. Shoppers are able to log onto their computers or phones and surf the web, exploring new products and shopping for items that they use every day. Not only can they browse through products, but they can also find specials or reduced prices on items that they desire. Online shopping provides access to many products and things that might otherwise be difficult to find in your local area. Many people have turned to internet shopping in order to save money and find better deals. By shopping online it allows them the freedom to browse and shop around to find the best product for their needs. While shopping online does have some security concerns with cybercrime and identity theft, it is relatively safe. In fact, crime and stolen financial information can occur as easy in a shopping mall as it can online. Credit card fraud and stolen financial information is an old crime and not something that is only relevant to online shopping. It may be easier for law enforcement to follow or catch a criminal through the online paper trail rather than swiping a card at a local department store and hoping to catch a good picture through the stores surveillance cameras. In addition, another benefit to online shopping, over mall shopping is the fact that there are no long lines to wait in, sold out products or person monitoring purchases, making on line shopping a popular choice among the public today. Shopping online or in a regular department store truly comes down to a personal choice. While many people feel that online is better it really depends on their own personal preferences. While online shopping is convenient and provides additional resources for shoppers, there is still benefit to department stores and the immediate delivery of the product!

Works Cited

Bellman, Steven, Gerald L. Lohse, and Eric J. Johnson. “Predictors of Online Buying Behavior.” Communications of the ACM 42.12 (Dec 1999): 32-38. Print.

Constantinides, Efthymios. “Influencing the Online Consumer’s Behavior: The Web Experience.” Internet Research 14.2 (2004): 111-126. Emerald Group Publishing. Kalmus, Veronika, Anu Realo and Andra Siibak. “Motives for Internet Use and their

Relationships with Personality Traits and Socio-Demographic Factors.” Journal of the Humanities & Social Sciences. 15.4 (2011): 385-403

Lee, Evelyn, et al. “Click Til You Drop. (Cover story).” U.S. News & World Report. 125.22 (1998): 42

Li, Na and Zhang, Ping, “Consumer Online Shopping Attitudes and Behavior: An Assessment of Research” (2002). Former Departments, Centers, Institutes and Projects. Paper 57.

Milne, George R., Lauren I. Labrecque and Cory Cromer. “Toward An Understanding Of The Online Consumer’s Risky Behavior And Protection Practices.” Journal Of Consumer Affairs 43.3 (2009): 449-473.

Nehf, James P. “Shopping for Privacy on the Internet”. Journal of Consumer Affairs. 41.2 (2007): 351-375

“Over 875 Million Consumers Have Shopped Online- The Number of Internet Shoppers Up To 40% in Two Years.” Nielsen. The Nielsen Company. 28 Jan. 2008. Web. 27 Jan. 2012.

Webb, Richard. “I Want What She Wants.” New Scientist 199.2687 (2008): 52-55.