Consumer Behaviour Analysis in Online Shopping and Cultural Influences
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Added on 2023/05/26
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This report analyses the behaviour of consumers with respect to online shopping and cultural influences. It proposes marketing-based solutions to issues and provides industry-based examples.
Running head: CONSUMER BEHAVIOUR ANALYSIS CONSUMER BEHAVIOUR ANALYSIS Name of the Student Name of the University Author Note
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1CONSUMER BEHAVIOUR ANALYSIS Table of Contents Introduction....................................................................................................................2 Three recent issues based on online shopping and cultural influences on consumer behaviour....................................................................................................................................2 Proposing three marketing based solutions to the issues...............................................4 Three industry based examples related to the issues......................................................4 Conclusion......................................................................................................................5 References......................................................................................................................6
2CONSUMER BEHAVIOUR ANALYSIS Introduction Consumer behaviour is considered to be a study which helps the individual customers, organizations or groups to select, buy, dispose different ideas based on services and goods which are able to satisfy their wants and needs. The analysis of consumer behaviour is also helpful in examining the attitudes, preferences and emotions of consumers who are a part of the industry (Al-Debei, Akroush & Ashouri 2015, p. 8). The report will be based on the discussion of different issues which take place in behaviour of the consumers due to online shopping. The influences of culture on the shopping based habits of the consumers will also be analysed in the report in detail. The issues will further be determined with the help of real life based industry examples. Three recent issues based on online shopping and cultural influences on consumer behaviour Online shopping or internet shopping is considered to be a major medium of shopping based activities which is used by the consumers in the current business based environment. The activities based on online shopping are increasing in a continuous basis and this has become a common trend among the young group of consumers especially (Schivinski and Dabrowski 2016, p. 200). The comfort levels which are offered by online shopping related platforms have played a major role in the increase of popularity based on these activities. The developed countries and the consumers in these countries have been affected in a huge manner by facilities that are provided by online shopping (Bilgihan 2016, p. 10). Culture is considered to be another major factor that has a major effect on the behaviour of consumers in the industry. The behaviour based patterns of the individuals and their values and beliefs are also considered to be an important part of the ways by which consumers behave towards different services and products (Bradford et al. 2017, p. 120). The
3CONSUMER BEHAVIOUR ANALYSIS proper determination of consumer behaviour is thereby possible with the help of the culture that the consumers belong to. This is thereby the major reason behind the success of products in some areas and their failure in the other areas. The marketers are thereby able to position their products in an effective manner with respect to the culture of which they are a part (Carlson, O’Cass & Ahrholdt 2015, p. 15). The first major influence of online shopping on consumer behaviour is based on the lack of brand loyalty among the consumers. The consumers who belong to the new generation do not have high levels of loyalty based on any brand (Vladlena et al. 2015, p. 40). The most important part of the shopping based process of consumers is related to the prices that are offered by the organizations. The cultural factors are thereby based on the benefits which are provided by the products based on low prices (Cavallo 2017, p. 20). The online reviews which are provided by consumers are able to play a major role in the behaviour of consumers towards retail products on both the online as well as offline based platforms. The culture based on online recommendations is also an important part of the effective operations of consumer behaviour that is depicted in the industry. The personal insights are gained by consumers with the help of different reviews that are provided by the consumers online (Hong, Tam & Yim 2016, p. 25). The huge number of choices that are offered to the consumers in retail industry are importantfactorsthatareabletoaffecttheoperationsandprofitabilityofdifferent organizations. The consumers thereby need to be offered with effective reasons which can compel them to purchase the products from a particular store as compared to the others (Kim and Krishnan 2015, p. 2450). The uniqueness of offers which are provided to the consumers can play a key role in the ways by which consumers are able to purchase particular products. The engagement of consumers is also an important factor that is able to affect the purchase
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4CONSUMER BEHAVIOUR ANALYSIS based decisions that are taken by the organizations (Karimi, Papamichail & Holland 2015, p. 22). Proposing three marketing based solutions to the issues The first issue which is related to the cultural influences on consumer behaviour with respect to online shopping is based on the lack of effective levels of brand loyalty. The retail industry of Australia also has been facing these issues based on appropriate behaviour of the consumers. The loyalty levels of consumers can be increased with the help of proper engagement and communication based activities (Lim et al. 2016,p. 30). The second issue which has been faced in the determination of consumer behaviour is related to the effect of online reviews on the decisions that are taken by them. The organizations in Australian retail industry have also faced issues based on analysis of the consumer behaviour which is based on the reviews that are offered online and their effects on the decisions which are taken by the consumers. High levels of customer engagement are able to increase the levels of loyalty in an effective manner (Martin, Mortimer & Andrews 2015, p. 30). The third issue is based on unique offers which are required to be provided to the consumers in order to attract them towards the products. The consumers are attracted towards the organization if they are able to provide services and products that are totally unique in nature. The levels of uniqueness of the products and services need to be increased in order to retain the customers (Pappas 2016, p. 40). Three industry based examples related to the issues A major Australian retail based organization named Woolworths has been facing huge issues based on the loyalty of consumers. The organization is facing huge issues based on the ways by which consumer base can be retained in an effective manner. Woolworths is facing
5CONSUMER BEHAVIOUR ANALYSIS huge issues based on the products that are offered by online organizations (Sandrin et al. 2017, p. 1300). The reviews which are provided online are able to affect the sales and profitability of a retail organization like Coles in the Australian retail industry. The organization needs to develop effective communication with the customers so that they can influence the reviews which are provided by them on different online platforms (Taylor 2016, p. 45). The offers and opportunities which can be provided to the customers online are also considered to be an important part of the sales and revenues of Woolworths. The organization thereby needs to understand the needs and demands of consumers in order to offer the best products and packages (Huete-Alcocer 2017, p. 1256). The products that are offered to the customers by Woolworths are totally based on their choice and demands. Woolworths has been able to develop its position as a customer centric organization with the help of the best and fresh products (Martin, Mortimer & Andrews 2015, p. 30). Conclusion The analysis can be concluded by stating that the behaviour of consumers with respect to online shopping can be affected in a huge manner by different cultural influences. The cultural effects are able to play a key role in the ways by which different organizations are able to operate in the industry. The operations of online organizations are largely based on the behaviour of the consumers. The Australian retail industry has been affected by both the online and offline retail based stores. This has caused a competitive environment and organizations need to offer the products and services effectively in order to differentiate the operations.
6CONSUMER BEHAVIOUR ANALYSIS
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7CONSUMER BEHAVIOUR ANALYSIS References Al-Debei, M.M., Akroush, M.N. & Ashouri, M.I., 2015. Consumer attitudes towards online shopping:theeffectsoftrust,perceivedbenefits,andperceivedwebquality.Internet Research,25(5), pp.707-733. Bilgihan, A., 2016. Gen Y customer loyalty in online shopping: An integrated model of trust, user experience and branding.Computers in Human Behavior,61, pp.103-113. Bradford, D., Courtemanche, C., Heutel, G., McAlvanah, P. and Ruhm, C., 2017. Time preferences and consumer behavior.Journal of Risk and Uncertainty,55(2-3), pp.119-145. Carlson, J., O’Cass, A. & Ahrholdt, D., 2015. Assessing customers’ perceived value of the online channel of multichannel retailers: A two country examination.Journal of Retailing and Consumer Services,27, pp.90-102. Cavallo, A., 2017. Are online and offline prices similar? evidence from large multi-channel retailers.American Economic Review,107(1), pp.283-303. Hong, W., Tam, K.Y. & Yim, C.K.B., 2016. E-service environment: Impacts of web interface characteristics on consumers’ online shopping behavior. InE-Service: New directions in theory and practice(pp. 120-140). Routledge. Huete-Alcocer, N., 2017. A Literature Review of Word of Mouth and Electronic Word of Mouth: Implications for Consumer Behavior.Frontiers in psychology,8, p.1256. Karimi, S., Papamichail, K.N. & Holland, C.P., 2015. The effect of prior knowledge and decision-making style on the online purchase decision-making process: A typology of consumer shopping behaviour.Decision Support Systems,77, pp.137-147.
8CONSUMER BEHAVIOUR ANALYSIS Kim, Y. and Krishnan, R., 2015. On product-level uncertainty and online purchase behavior: An empirical analysis.Management Science,61(10), pp.2449-2467. Lim, Y.J., Osman, A., Salahuddin, S.N., Romle, A.R. & Abdullah, S., 2016. Factors influencing online shopping behavior: the mediating role of purchase intention.Procedia Economics and Finance,35, pp.401-410. Martin, J., Mortimer, G. & Andrews, L., 2015. Re-examining online customer experience to includepurchasefrequencyandperceivedrisk.Journalofretailingandconsumer services,25, pp.81-95. Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying behaviour.Journal of Retailing and Consumer Services,29, pp.92-103. Sandrin, E., Trentin, A., Grosso, C. and Forza, C., 2017. Enhancing the consumer-perceived benefits of a mass-customized product through its online sales configurator: An empirical examination.Industrial Management & Data Systems,117(6), pp.1295-1315. Schivinski, B. and Dabrowski, D., 2016. The effect of social media communication on consumer perceptions of brands.Journal of Marketing Communications,22(2), pp.189-214. Taylor, E., 2016. Mobile payment technologies in retail: a review of potential benefits and risks.International Journal of Retail & Distribution Management,44(2), pp.159-177. Vladlena, B., Saridakis, G., Tennakoon, H. and Ezingeard, J.N., 2015. The role of security noticesandonlineconsumerbehaviour:Anempiricalstudyofsocialnetworking users.International Journal of Human-Computer Studies,80, pp.36-44.