Rural Consumers' Online Shopping for Food and Fiber Products as a Form of Outshopping

Abstract

The purpose of the research was to longitudinally investigate rural consumers' online shopping for food and fiber products as a function of satisfaction with local retailing and outshopping. Innovation diffusion theory was used to guide the research. Eight hundred seventy-nine rural consumers from 11 states completed surveys twice (in 2000 and 2003). Data were analyzed using structural equation modeling and analyses of variance. Dissatisfaction with local retailing in 2000 was a powerful driver of outshopping, beliefs about online shopping, and online shopping (both in 2000 and in 2003). Outshopping was positively related to online shopping at both points in time, suggesting that variables found to affect outshopping in the literature may affect online shopping in a similar way.

The Risk Faced by Consumers in E-Retailing

“…In his studies, he identify about 73% people stated that convenience as their main reason to use internet service. In further, he continued to conduct the same research again and he still found convenience as important factor where 76.5% people admit that shops online is convenient (Lennon et al, 2008). It is also support by (Sorce et al, 2005) that conveniences become the acceptable reason for consumer to shops online, especially for younger people (Sorce et al, 2005).…”

“…Most of the people that stayed in rural area will also face geographical distance problem. Owing to this factor, e-shopping is more beneficial and attractive to consumers who are living in rural area (Lennon et al, 2008). Nowadays, many people have busy lifestyles.…”

“…The risk such as purchase wrong product might influence the buyer decision making process when shops online (Ko et al, 2004). Many people use internet tools just to view the product specification and compare the prices but would not buy the product which they do not touch and see (Lennon et al, 2008). For example, when customer wanted to buy clothes online, they would not be able to touch the quality of the fabrics.…”

“…Company that offer online shopping want to reduce this problem. The company have to build more trust because according to Lennon et al, (2008) the trust concern on internet is needed, especially credit card attractive and financial transaction (Lennon et al, 2008). Trust is known as believing in something that is true and was a control method to monitor performance which was treated as risk and it control problem in marketing discipline (Karayanni, 2003).…”

“…Online shopping give advantages such as save time, affordable and can shop at any time they want (Monsuwe et al, 2004). According to Lennon et al, (2008), fun, convenience and quickness become the main factors that influence the customer to shops online. In his studies, he identify about 73% people stated that convenience as their main reason to use internet service.…”