An Economic Model of the Consumers' Online Shopping Utility and Factors Affecting on Online Shopping

Abstract

This paper integrates extant literature on retailing and consumer choice to develop an economic model of consumer choice in which a consumer self-selects on-line shopping. Three important factors impacting consumer choice of on-line shopping: (1) the online shopping utility (2) the consumers' perceived product and service risks (Perceived Privacy Protection, Perceived Security Protection etc.) and (3) consumer and e-vendors qualities (Consumer Disposition to trust, E-vendors' Positive Reputation etc.) . Our model postulates that consumers derive utility from the online shopping experience and are affected by different factors (familiarity, disposition to trust, e-vendors' positive reputation, perceived privacy protection and perceived security protection). Consumers are also more likely to shop on-line from familiar websites and evendors than lesser known ones. However, they are less likely to shop on-line from e-vendors or website that does not have explicit privacy and security measures. Empirical verification of the model is carried out using a survey method approach and the results gave support to the postulations based on our theoretical model. Limitations and directions for future research are also discussed.

What Influences Buying Leisure Services Coupons on Online Group Buying?

“…The sense of virtual community has significant effect on OGB intention was found by Cheng et al (2012) as well. In addition, Azam and Qiang (2012) found that familiarity with other purchasers in the same sites has strong influence on OGB. However, in the case of OGB, we have not observed that virtual community matters.…”

“…Choice for online purchasing is impacted by online shopping utility, customers perceived service risk and customers e-vendors qualities, such as attitude for risk, reputation (Azam & Qiang, 2012). Usefulness and easy to use navigation are primary motives to use the website.…”

Online Group Buying Factors – Conceptual Model for Understanding Consumer Value

“…Thus, there are a lot of of advantages of e-commerce for customers. Three important factors, what impact the consumer choice of on-line shopping are as follows: the online shopping utility, the consumers' perceived product and service risks (perceived privacy protection, perceived security protection), consumer and e-vendors qualities (consumer disposition to trust, e-vendors' positive reputation) (Azam and Qiang, 2012). There are also some disadvantages, such as unsecure payment information (the necessity to give credit card number) or shipping costs are too high.…”

“…This way of buying can be an opportunity to minimize risk of buying online. Trust and risk perception act as important factors to buy online (Liu and Forsythe, 2010;Azam and Qiang, 2012;Faqih, 2013). Information and communication technologies and virtual networks act as a platform for any necessary information for making a decision about a purchase.…”

How country of manufacturing and sweatshop free information affects online apparel consumers' perceived quality, value and purchase intention

“…This contributes some degree of risk or uncertainty to consumers regarding their purchase decision (Park & Kim, 2007;Azam, 2012).…”