An Evaluation of the Factors Affecting the Online Shopping

Abstract Online obtain has grown rapidly in mainland china over the last decade, yet there be only a whatsoever studies in Chinese linguistic context. This look focuses on B2C (Business to Customer) and C2C (Customer to Customer) to identify the factors that aloneude online shop plan of consumers in both positive and negative aspects. However, there atomic number 18 few differences exist that influence online obtain object among varied countries.As a result, this essay evaluates the determinants of online obtain intention of Chinese consumers by equivalence consumers in early(a) countries, which will give an insight for online sellers to develop more(prenominal) competitive strategies in china. Contents Abstract Introduction1 Literature look into3 1. Global consumers6 1. 1 chief(prenominal) factors scathe, gadget and risks6 1. 2 Additional factors7 2. Chinese consumers8 2. 1 Main factors prime(prenominal), deliin truth and redeemment protective cover8 2. 2 Additional factors favorable influence9 Conclusion11 Bibliography14 IntroductionThere argon a growing number of lot choosing online shop and this growing tr residuum has emerged all over the world over the last few decades. Online shop is define as The act of purchasing results or services over the lucre (Business dictionary, 2012). Similarly, iResearch (2011) defines it as The process of transferring commodities or services from the merchant/seller to several(prenominal) users (consumers) via the earnings. Such a process is called online shop if any of its capital flow, logistics, or reading flow involves the profit. Benefiting from the rapid economic issue and the development of the Internet, online shopping has become increasingly prevalent in chinaware. The amount of transactions in online shopping, accounts for 1. 1% in 2008 rising to 3. 3% in 2010 of Chinas total sell sales of consumer goods (CNNIC, 2011). Moreover, the latest report illustrates that up to celest ial latitude 2012, the number of net citizens in China reached 513 million, of which online shoppers are 194 million and the throw has kept a steady development trend with an incr quilt of 20. % compared to the end of 2011 (CNNIC, 2012). It butt end be seen that online shopping in China has get a lined a robust growth and demonstrates a great potential when compared to mature online shopping markets, much(prenominal) as the USA, UK and Japan. However, the development of Chinas online shopping has encountered some obstacles, such as the limitations found within address and salary organizations (Liu, He, Gao, & Xie, 2008, p. 925 & p. 932).Moreover, closely question into online shopping has center on western countries, but very little research has been done in the Chinese context (Kau, Tang, & Ghose, 2003, p. cxl Liu, et al. , 2008, p. 921 So, Wong, & Sculli, 2005, p. 1225). Therefore, in order to reach its potential and to maintain the steady growth tendency of online shoppi ng market in China, it is big to attempt to quail at the issues influencing the online leverage intentions of Chinese consumers.Thus, the purpose of this paper is to identify and evaluate factors that allude the differences amidst online buy intentions of Chinese and spheric online shoppers. This paper is structured as follows. The next fragmentalisation reviews the related literature around the issues relating to online shopping. Section 1 will identify which factors are prominent or auxiliary and whitethorn affect online shopping intention of global consumers plot section 2 will compare Chinese consumers with global consumers and evaluate the significance of the differences.Literature Review The e-commerce industry has developed rapidly worldwide over the last few decades including the online shopping market in China which has experienced steady growth. a lot research has tried to identify what the factors are and how they affect the online shopping purchase intention ho wever, a large proportion of these studies name been concerned slightly the West while only a few studies keep back focused on Chinese online shoppers and take into account the cultural impact (Kau, et al. , 2003, p. one hundred forty Liu, et al. , 2008, p. 21 So, et al. , 2005, p. 1225). To allow the reader to better understand the factors affecting online shopping intention in China, this section will offer academic research reviews regarding this subject, including different theories, influential factors, and concerns relating to cultural differences. Since online shopping has become more popular, it has move ined far-flung forethought. Different models and theories encounter been adopted by many researchers to identify and go steady the factors affecting online shopping intention or behaviors. The Theory of Reasoned serve (TRA), the Technology Acceptance Model (TAM) and the Theory of Planned Behaviour (TPB) have been frequently used (So, et al. , 2005, pp. 1226-1228). Chiu, Chang, Cheng and Fang (2009, p. 761) extended TAM by introducing e-service gauge dimensions, combining and enjoyment in the development of a theoretical model to orbit customers repurchase intentions of online shopping. Similarly, Liao and Shi (2009, p. 5) conducted the related research which is also based on the TAM framework, but combined it with environmental and social constructs to elucidate consumers mental attitude and behavioural intention to use e-retailing. A number of studies have extensively discussed the factors influencing online shopping intention over many years. Convenience, price savings, extensive information, enjoyment, and large product selection are considered as study benefits of online shopping (Fang, Chiu, & Wang, 2011 cited Childers et al. , 2001, p. 82). In addition, another research (Liao & Shi, 2009, p. 28) reveals that social influence, such as online consumer reviews or enunciate of mouth play a significant role in affecting individual be havioural intention to shop online, which is consistent with the result of the research done by Chung and Shin (2010, p. 473) and Lee, Park and Han (2011, p. 187-188). Moreover, many researchers suggest that sensed ease of use and perceived usefulness of shopping through the Internet are valuable antecedents of intentions (Chiu, et al. 2009, p. 763 Fang, et al. , 2011, p. 486 So, et al. , 2005, p. 1238). Even though online shopping brings some benefits to consumers which attract them to shop online, some factors have a negative effect on consumers purchase decision. For example, poor quality products and underdeveloped remuneration establishment in particular, many researchers demonstrate that trust is a vital factor for online consumers to manoeuvre purchase decisions. Xu, Zou and Wang (2006, p. 202) also diaphragm out that trust is considered to be the to the higher(prenominal)est degree authorized factor.In contrast, an earlier study suggests that in some countries the approximately important factor is price while trust is not as important as price (Kim, Xu, & Gupta, 2011 cited in Reibstein, 2002, p. 8). Recently, some researchers have started paying more attention to the Chinese online shopping market and some comparative studies have been conducted in the context of online shopping in China collectible to the agile development of the Internet and rapid growth sales in online shopping. Areas cover include China and Japan (Atchariyachanvanich & Okada, 2006) and China and America (Ou, Sia, & Banerjee, 2007).It has been demonstrated that the differences in the midst of consumers in China and those in other countries, and namely issues dealing with product quality, logistic root, payment systems and social influence. This section has reviewed literature about the major theories used in research and some factors that research has suggested including the difference between China and other countries. In the following sections, this research will class and evaluate the dynamic factors and related issues regarding consumers online shopping intentions by comparing China to some other countries. . Global consumers With the increasing intensified competition in online shopping, it is more of the essence(p) than ever for online retailers to understand the factors affecting consumers intention in online shopping, which is critical to success. Therefore, a number of studies foc utilise on influential factors of online shopping appear in many published conference proceedings and journals. This section will categorize the issues influencing global consumers online shopping intentions. 1. 1 Main factors price, convenience and risksThere are some factors which attract consumers to call for online shopping. Firstly, price has long been considered as a significant predictor when customer making a decision and e-commerce allows consumers to compare the prices across different online shops to find out the cheapest product slowly (Kim, e t al. , 2011, P. 1). Moreover, compared to conventional retail shops, internet-based shops have a cost advantage as a result, they are able to offer their products at a cheaper price than are available in traditional shops (Atchariyachanvanich & Okada, 2006, p. 281 Liao & Shi, 2009, p. 27). Secondly, many researchers also point out that as well as price the perceived ease of use and perceived usefulness are important factors to attract consumers to engage in online shopping (Chiu, et al. , 2009, p. 763 Fang, et al. , 2011, p. 486 So, et al. , 2005, p. 1238). For example, online shopping provides the opportunity for consumers to easily locate shops and products, peculiarly convenient for target-oriented consumers who have already decided what they want to buy. (Fang, et al. , 2011, p. 485).On the other hand, til now though online shopping brings some benefits and attracts some consumers, there are those that are aware of the risks involved and so this whitethorn lead to them deny ing it. Kau, Tang and Ghose (2003, p. 141) argue that those risks include lack of security, the possibility of credit card fraud, uncertainty about the quality of products, and return issues when the products are failed to meet consumers expectation. Moreover, due to the distances involved with online shopping and the fact that consumers are unable to touch or see the products seems to be an inherent perception of risk in shopping online (Kim, et al. 2011, p. 1 Kuhlmeier & Knight, 2005, p. 463). 1. 2 Additional factors Apart from the major factors mentioned above, some additional factors influence the intention of online shopping as well. First of all, the amount of availability of extensive information and choices in online shops which the traditional stores are unable to compete with. Therefore, the options of products available in conjunction with the very latest information being available are a relatively important attractant to online shopping over the traditional retail stor e (So, Wong and Sculli, 2005, p. 235). In addition, some other influential factors were identified by Kau, Tang and Ghose (2003, p. 140), Atchariyachanvanich and Okada (2006, p. 2281) , and Fang, Chiu and Wang (2011, p. 482), such as time saving, time flexibility, real-time trade offers, sharing other online customer reviews and enjoyment. Furthermore, Kuhlmeier and Knight (2005, p. 463) suggest that the more experience of using internet the more likelihood of the consumer to become an online shopper. 2. Chinese consumersSince incomplete can the lively knowledge of Chinese consumers behaviour on traditional shopping nor the reported findings about online shopping in other countries can be directly applied to the online shopping market in China therefore, marketing strategies need to be tailored to the specific market (So, et al. , 2005, p. 1225). This section will highlight and address any differing issues influencing online shopping intention of Chinese consumers by conducting a comparison between Chinese consumers and consumers in other countries. 2. 1 Main factors quality, address and payment security Liu, He, Gao and Xie (2008, p. 31) state that Chinese people are quite sensitive to price and like negotiating with sellers to bring home the bacon a satisfactory deal. Similarly, Atchariyachanvanich and Okada (2006, p. 2283-2285) believe that the main reason why Japanese and Chinese consumers shop online is for cheaper price however, they add that cheaper price is not the most important reason affecting Chinese consumers online purchase intention, Chinese consumers send the security of the website and the ability to read previous customers reviews at the top. It seems to highlight Chinese online shoppers uncertainty whether the products they buy re genuine and have good quality or not. Beside quality of products, delivery as another essential factor was concerned by Chinese consumers. Just as CNNIC (2012) shows in the twenty-ninth report that delivery i s one of the main aspects causing consumer dis merriment of online shopping more specifically, 12. 3%, 5% and 3. 6% of Chinese consumers were not satisfied due to delayed delivery, lost or damaged products and bad attitude of delivery staff respectively. As a matter of fact, Chinese logistic infrastructure lags behind some countries particularly in terms of limited choices of delivery companies and long delivery time.In contrast, the US has a mature and efficient diffusion network supporting online shopping, because outsourced third parties can provide professional services, such as FedEx, UPS, DHL, etc. (Ou, et al. , 2007, p. 23). Research carried out by Xu, Zou and Wang (2006, p. 206) shows that online payment security is the most important factor which should be streng pasted by e-commerce companies because online shoppers pay more attention to it. Additionally, unsound credit card payment system is more seeming to cause financial risk and privacy leakage.In the US, using credi t card is the most popular way to pay for online shopping, while in China is still cash payment due to the cash-based farming and immature credit card payment system (Ou, et al. , 2007, pp. 21-22). This results from the immature Internet technology which to a large extent impedes the development of online payment system in China. Consequently, the financial risk might be caused by underdevelopment online payment system, which is a significant reason leading to a decision to reject online shopping (Zhou, Dai, & Zhang, 2007, pp. 49 & 55). 2. 2 Additional factors social influenceBased on Hofstedes cultural model, online consumer behaviour can be predicted by five cultural difference dimensions, one of them is individuality collectivism, for instance, America and New Zealand belong to individualism while China belongs to collectivism. This, in turn, has led to different online shopping behaviour among consumers belonging to Eastern and Western cultures (Zhou, et al. , 2007, p. 46). S everal studies have revealed that people from a collectivist culture should be more easily influenced by people within their social circles (Liao & Shi, 2009, p. 5). Consequently, social influence should not be neglected in the context of online shopping in China. On the one hand, gracious interaction cannot be fully satisfied in Internet-based shopping therefore, it may not be easily accepted by Chinese which are more likely to enjoy interacting with others when shopping (So, et al. , 2005, p. 1237). In addition, it is very public in China that one tends to follow if friends or relatives are provoke in online shopping (Liao & Shi, 2009, p. 27).Furthermore, online consumer reviews or electronic word of mouth as a specific way of social influence in the context of online shopping plays an important role in affecting online consumers to make purchase decision (Chung & Shin, 2010, p. 473 Lee, et al. , 2011, p. 188). It seems that social influence is an importance factor affecting o nline shopping intention of Chinese consumers. Conclusion This project reviewed literature regarding online shopping issues firstly. It then classified some main factors and additional factors which influence global consumers to choose or not choose Internet-based shopping.Specifically, cheaper price and convenience of online shopping have positive effect in affecting global consumers online shopping intentions however, some risks in terms of products, financial and private information are likely to cause the rejection of online shopping. Finally, it acknowledged and assessed the divergent issues affecting Chinese consumers online shopping intention with a comparative approach. Chinese consumers are quite different to global ones due to culture difference and deficiencies within payment and delivery sytems.For example, perheaps because of the high rate of counterfeit and inferior products, Chinese online shoppers pay more attention to the product quality than price. Moreover, in Chi na the logistic infrastructure and payment system are less developed and less mature than in other developed countries and this brings greater fear to Chinese consumers to conduct online shopping. Additionally, social influence and associated information from previous consumers who express their opinions online about products and sellers are essential for the Chinese online consumers.As noted above, online shop retailers should not simply apply the existing knowledge about global online consumers to Chinese online shoppers, cultural differences must be taken into account, which is critical to their success and will benefit the development of online shopping market in China. (Words 2507) Bibliography Atchariyachanvanich, K. , & Okada, H. (2006, 17-20 December 2006). A Study on Factors modify the Purchasing Process of Online Shopping A Survey in China & Japan. 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