[SOLVED] Impact of Internet Marketing on Consumer Buying Behavior

The assignment requires analyzing the impact of internet marketing on consumer buying behavior. It involves researching various studies and research papers on internet marketing, including articles from journals such as International Review of Management and Marketing, Current Issues in Tourism, and Human Factors and Ergonomics in Manufacturing & Service Industries. The task also includes examining online shopping trends in India and customer buying behavior. A summary of the findings is expected to be provided.

Effect of online shopping on
consumer buying behaviour . A
comparative case study between
Mauritius and India

Table of Contents
LITERATURE REVIEW................................................................................................................1
Introduction.................................................................................................................................1
Meaning and concept of consumer buying behaviour................................................................2
Understand the meaning of online shopping and its significance in the business......................3
Motivation to buy online.............................................................................................................5
Online shopping market in the Mauritius and India....................................................................6
Explore the impact of online shopping on the consumer buying behaviour...............................9
Analyse the impact of online shopping on the individual life style.........................................11
REFERENCES..............................................................................................................................13

LITERATURE REVIEW
Introduction
Literature review is the main body of the dissertation which provides detail knowledge
and understanding about the subject. With assistance of this chapter, scholar can understand the
concept and overview of subject. In this section, the topic can described with help of various
authors and their view, thoughts and statement. In this chapter, various articles has been also
included which deliver the detail information about the subject. In the present dissertation, the
major aim is to analyse the effect of online shopping on the consumer behaviour. Thus, in this
chapter, various themes related to the consumer behaviour, its factor, online consumer buying
decision has been systematically designed.
With assistance of this chapter, scholar can able to gain the knowledge about the online
shopping and importance of internet. In the present time, internet plays a very crucial role in the
business context. By use of internet, individual, institutions and corporations can easily get the
information about aspect and easily connected with other people. This medium helps to the
corporation in promoting their product and services and attract the customers in the large
manner. Business unit can provide information about the product and services to customer and
get their review about the same (Stelzner and Michael, 2011). Thus, it can be said that in the
present time internet helps to the organisation's ad its business in large manner by which it
becomes easily to start up the business and design company image in the market. In the today's
time, social media is another one of the almost famous platform which using most of the
business enterprise with respect of selling and promoting commodities. In the present
dissertation, literature review provides importance of social media and its impact on the online
shopping by consumers. In addition to this, this platform influence consumer behaviour with
respect of shopping. In the present study, the deep analysis of the online shopping on the
consumer buying behaviour with respect of Mauritius and India. With help of this chapter,
researcher can able to explore the detail knowledge about the topic so as they can conduct
investigation in an effective manner. Among these countries, how online shopping is growing
and how it impacts on the customer buying behaviours has been systematically included in this
chapter (Safko and Lon, 2010). This chapter describes the online shopping importance in the
present time and its impact on the customer buying behaviour. In the present chapter, the ratio of
online shopping in the India and Mauritius has been also included so as learner can easily acquire
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the knowledge about the online shopping market in the India and Mauritius. Following are some
themes which prepare complete knowledge about the effect of online shopping on consumer
behaviour-
Meaning and concept of consumer buying behaviour
As per the view of What Impacts Consumer Buying Behaviour?.(2017) in every business
industry like retail, hospitality, travel and tourism etc customer plays a very crucial role because
they are the kind of market through which entire marketing activity organise. If there is no
consumer then companies can not make efforts to promote and sale its product and services.
Customer behaviour, attitude and perception can reflect from their background, culture,
education, life style, income level etc. Their behaviour is dynamic which can change according
to the time thus, it can be said that customer behaviour is very sensitive. The study of customer
behaviour includes social science discipline of sociology and economics, anthropology,
psychology etc. In the opinion of Fotis, John, Buhalis and Rossides, (2012) Consumer buying
behaviour can reflect from their requirement because they always purchase the commodities
according to their needs and wants. It is very important for the organisation to understand
customer buying behaviour and their requirement related to product and services.
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In the opinion of Mills and Law, (2013) there are various kinds of component which
affect consumer buying behaviour such as cultural factor, social factor, personal factor,
psychological factor etc. These all components influence to the consumer buying behaviour at
the time they purchase product and services. In the context of cultural factor includes different
elements related to the cultural environment. Consumer buying behaviour always reflect from
their culture, background, life style etc. While they purchase any product and services then their
culture is always changed their decisions. In the cultural component includes sub culture, social
class etc. In the sub culture, people are included who share the same values, customs and
traditions. In the view of Blumentritt, (2006)In the context of social classes includes society who
live around to the individual. While customer purchase the product and services then their value,
beliefs, region, cultural background is always affected their decisions of purchasing. On the other
hand, in the context of social factor includes social role, status, family, group etc. Social factor
included some elements such as family, reference group, role, status etc. This it can be said that
while buyer purchase anything then its decision is largely affected by the family requirement, life
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Illustration 1: Customer Buying Behaviour
(Source:What Impacts Consumer Buying Behaviour?.2017)

style, background, reference group etc. For instance, single person required the goods and
services for his own use. On the other hand for the couple customer required the good s and
services for both person use. In the context of personal factor includes customer age, value,
activities hobbies, habits etc. Personal factor includes age, occupation, economic condition, life
style, self concept, personality etc. while customer purchase anything then their age, occupation,
life style always influence his decision about purchasing. One another major component affect
the buying decision of customer under which include motivation, perception, learning and
experience, attitude and belief etc. These all things can also affect the customer while they
purchase anything from the market. Thus, from these all discussion about the element of
customer behaviour it can be said that there are various things which influence customer buying
behaviour so it is very important for organisation to understand behaviour of customer and their
requirement for product and services.
Understand the meaning of online shopping and its significance in the business
As per the view of McDaniel and Gates, (2012) in the present time technology is being
growing in continuous basis by which every sector of business is affected. Technology has
changed the criteria of business and its process. In the today's time, internet plays a very
significant role in the business by which enterprise can bale to promote its product and services
in the market. There are various kinds of software and application by which customer can
directly purchase the product and services at the internet. Social media is a platform by which
business unit can able to share their information about the product and services. At this medium
there are various platforms such as Facebook, Twitter, You tube, instagram etc. These all
channels assist to the company in posting its product images, video, links etc. By this way,
company can easily connect with customer and identify their view, comments, review and
feedback about the product and services. In the Mauritius and India, there are various
organisations which uses the internet channels for promoting and selling its product and services.
In addition to this, some company developed its shopping website on the internet and some of
developed its own shopping application software by which customer can easily purchase the
commodity and make payment.
In the view of Shih, Chen and Chen, (2013) Online shopping is easier way for the
customer as well as organisations because by these criteria, both of them can easily connect and
share their information. These applications of online shopping can save the time and money of
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the customer and corporation. In the context of customer, online shopping is significant because
they do not requirement to go the physical store for shopping the product and services. On the
other hand, they can easily save their time and make the payment easily without any confusion.
In the context of business enterprise, online shopping is also beneficial because it does not need
to spend the money on the establishing physical store and also do not hire sales representative.
With help of online shopping application and website, company can easily promote its product
and inform to customer about commodities features, prices, distribution, validity etc.
Furthermore, company can also identify actual needs and wants of the customer about the
product and services. Both organisation and customer can share the information about the items
and company can able to get the feedback, review, suggestion of customers about the existing
services. While any company starts its own online shopping website and application then it is
very important for it to understand the demand of customer related to product and service and
who is its target market. In the view of Chan, Ling and Guillet, (2011) according to the needs
and wants of the customer, corporation required to put the commodities on the online shopping
websites. In addition to this, a typical online website feature includes the context, design
functionality of site etc. It is a very important fo the company to design the online website and
application in effective manner so as customer can easily view and see the information and
context about the product and services. An excellent online shopping website should includes
video, pictures, images, contents etc about the product and services so as customer can
effectively see the commodity and can able to take correct decision about purchasing. In order to
attract customer toward the online shopping, website design and looking plays a very crucial role
through which customer can attract toward the purchasing. With help of online website,
company can promote and advertise the product and services in the market and attract buyers
toward the company. In addition to this, it is very important for the company to include all
relevant information about the commodity like its features, distribution, prices, validity,
characteristics etc so as customer can easily able to know about the commodity and able to make
the decision about the purchasing.
Motivation to buy online
As per the view of Hollensen, (2015) in the present time, online shopping is continuously
increased because individual are become so engaged and they have not sufficient time to
purchase the commodities and services at the physical stores. Due to the shortage of time in the
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human being life they motivate to purchase the product and services by online basis. Thus, it can
be said that the major effect of online shopping to the customer buying behaviour is convenience
as customer can easily purchase the commodity at any time and at any place. In the contradicting
view Joy and McMunigal, (2013) stated that on the internet and online website customer can
identify the varies of commodities and services in better prices. At the online stores, customer
can get cheap deal and better prices from online stores because product products directly comes
from the manufacturers or sellers and there is not any involvement of middlemen. In addition to
this, customer can also able to compare the product and prices with other similar brand at the
online stores. It makes comparison and research of commodity and prices possible. In addition to
this, at the online website, customers can easily post their review, feedback and experience about
the product and services. This thing can help to the customers in taking the decision about the
purchasing of product and services because by reading the comments of customer related to
commodities they can easily analyse the effectiveness of particular brand. As per the view of
Hohn, (2013) One another positive influence of the online shopping on the customer is easy to
return. With help of online shopping, customer can easily purchase and return the commodities.
This is one of the most important advantage of the online shopping that customer can easily
return the commodity again to the company if they do not properly satisfy with commodity
prices, feature, characteristics and delivery. On the online shopping website, if customer does not
properly satisfy with product and services then they can easily return and get their refund within
7 days of working. In addition to this, in the present time at the physical store, customer can not
return the product and services and can not get back the fund. Due to this reason, many
customers prefer to purchase the commodity by online website and internet. Hidayanto and et.
al., (2012) stated that most of the customer motivate for online shopping because it is a current
trend in the fashion as every individual wants to update themselves according to the trend and
fashion. In addition to this, by use of online shopping websites, customer can able to explore the
various kinds of product and services because on the internet there are various kinds of product
and services available in the different brands.
Thus, it can be said that with help of online shopping, buyers have an opportunity to
view and analyse varieties of commodities so as they can take purchasing decision in effective
manner. In the view of Chan, Ling and Guillet, (2011) most of the customer prefers to purchase
product by online because they it is one of the time saving method for purchase the commodities.
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On the various online shopping website, companies offers attractive discount and offers
according to the festivals and season like summer, winder, spring etc. On the different festival
and different season, due to this attractive discount and offers, customer more attract toward the
on;line shopping. This is one of the best strategy to attract the customer toward the online
shopping because they can purchase the commodity in large manner if company offers attractive
discount on the seasonal basis. In addition to this, another major motivator factor on the online
shopping is gift vouchers. Some online shopping company offers the attractive gift voucher and
coupon along with shopping quantity. The customer who regularly purchase the commodity in
the online shopping website then firm offer then attractive gift and discount. Thus, it can be said
that this is one of the effective approach and motivator facto on the online shopping. For
instance, Amazon is one of the most famous website which have varieties of good and services
which offers to its customer and those customers who purchase commodity at regular basis then
it offers attractive offers and gift voucher to them.
Online shopping market in the Mauritius and India
As per the view of Hidayanto and et. al., (2012) online shopping is the procedure under
which customer and seller exchange their product and services on the internet. It is a kind of
electronic commerce at where goods and services are exchange and its value is determined in
terms of money. In the opinion of Changing Landscape of Online Shopping in India. (2016)
India is one of the fastest growing retail e-commerce market in the 2015 in the world. I the India,
2011 internet users is 65 million as compare to the last year which was 51 million. It has been
founded in the research that in the 2023, the e-commerce market in the India will touch $56
billion. The e-commerce market in India will control 6.5% of total retail market in the 2023.
Indian people are now enjoying the process of online shopping because they can quickly get their
product and services with help of online shopping websites. There are various online shopping
websites in the India such as Flipkart, Ebay, Snapdeal, Jabong, Myntra, Homeshop 18,
Shopclues etc. By these all Indian website, customer are more like to purchase the product and
services by online mode. In the below diagram, In the India there are 239 million smartphone
users. As per the research it has been founded that there are total 18.80% mobile website by
which online shopping is generated. On the other hand, there are total 42.03% mobile
application by which customer can able to purchase the product and services by online. In the
opinion of Chan, Ling and Guillet, (2011) Mauritius is an island nation in the Indian ocean
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which have different nations people lives such as Indian, Chinese, African, white etc. It has
various regions such as Hindustan, Christianity, Islam, Buddhism etc. The online market in the
Mauritius is limited but its use is on the rise. Many of the people uses the social media like
Facebook, you tube, twitter, instagram etc for communicating with each other. In order to
purchase the product and services, customer prefer to the online website but is law as compare to
the Indian market.
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Illustration 2: Online shopping data in India
(Source:Changing Landscape of Online Shopping in India. 2016)

Explore the impact of online shopping on the consumer buying behaviour
As per the view of Chan, Ling and Guillet, (2011) customer buying behaviour is very
dynamic which can change according to the situation, time, requirement etc. In addition to this,
this behaviour can also influence from various components such as social, cultural, personal,
psychological etc. In the present time, by online shopping and its various platform, customer
buying behaviour has been influenced in large manner. There are various positive and negative
impact put on the behaviour of customer with respect of purchasing product and services. Online
shopping has been made the shopping and purchasing criteria easy through which customer can
purchase commodity at any time and at anywhere without going to the physical store of the
organisation. While any organisation sale the product and service by online website and
application then it may become easier for customer as they can purchase the commodity without
going at physical store. In addition to this, online shopping have various benefits for the
customer and their buying behaviour can positively influence. In the opinion of Borza and Borza,
(2014) online shopping have major advantage related to customer is trust. Customer's trust plays
a very crucial role in the business enterprise as if customer have trust on the company then it may
become beneficial for firm's profitability and market share. If customer have strong trust and
believe on the corporation then they will always become loyal toward the firm and purchase the
commodity from that particular organisation. With help of online shopping website and
application of company, customer can easily get the entire information and detail about the
product and services. Furthermore, they can also collect the information about the company, its
brand image, popularity etc.
By this information, it becomes easily for customer to take the decision about purchasing
commodity. With help of online website and applications, customers can easily analyse the entire
information about the product and also can able to see the pictures, images, video of the product
and services. Hence, this thing can promote the customer for purchasing and make customer trust
stronger. In the opinion of Baker, (2014) another positive influence of online shopping for
customer is related to product variety because on the online shopping website and internet
applications, customer can see varieties of product and services. On the internet website,
company posts numbers of images and video of product and services through which customer
can easily take the decision about purchasing. In the opinion of Hays, Stephanie, Page and
Buhalis, (2013) another major positive influence of online shopping on the customer behaviour is
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related to the privacy. In the present time, most of the customer believe on the online transaction
because it is one of the safe mode for transfer the money. Online security is defined as the belief
of the customer that his their financial data will be protected and not made available. In the
criteria of online shopping, payment made on the basis of online thus it is more protect as
compare to the traditional method of make payment. In addition to this, in order to purchase the
product and services on the online website, customer needed to develop online account so as they
can purchase the commodity and make payment. On this website, customer have to put their
personal detail like name, gender, address, account information, phone number etc. These all
information always protected on the online shopping website so it can be said that it is one of the
most secure and protect platform at which customer can easily share their information before
purchasing the product and services. In the opinion of Fotis, John, Buhalis, and Rossides, (2012)
another major positive influence of online shopping on the customer buying behaviour is related
to the time. As online website of shopping helps to the customer in saving their time because
they do not need to go the physical store of organisation for purchasing product and services.
This thing can save the time of customer at the time of purchase the product and services.
However, there are some drawback along with online shopping which impact on the customer
buying behaviour in the negative manner. In the opinion of Dinan, (2000) along with online
shopping, one major disadvantage is related to the delay in delivery. Some company does not
have proper inventory management that is why they take long time duration in the delivery by
which it may delay delivering the product and services to the customers.
Due to the delaying in the product and services, customer trust can break and in resulting
they do not prefer to purchase commodity by online method. Chan, Ling, and Guillet, (2011)
stated that another major advantage of online shopping is lack of significant discount in online
shopping. While customer purchases the commodities from the physical store then companies
offers discount to the customer for attract them toward the organisations' product. Discount and
offer is one of the important strategy by which company can improve its customer loyalty. On
the online website, company set the prices and cost of product in fix manner which can not
change by negotiation. On the other hand at the physical store, customer can easily negotiate for
overcome the prices of product and services. Furthermore, at the online shopping, customer can
not look physically the product and services so that they can feel of merchandise in the online
shopping. Online shopping is not quite suitable for the clothes as the customer can not try them
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on. In addition to this, they can not physical interact in online shopping. Physical stores can
provide the opportunity of price negotiation between the buyers and seller. In the view of Bruhn,
Manfred, Schoenmueller and Schäfer, (2012) some customer have very lack of online shopping
experience so for those online shopping is quite difficult. They have fear about the fraud in the
online shopping because they have very lack of knowledge about the internet, its benefit,
operation etc that is why they have very lack of trust on the internet. Due to these reasons,
customer can not believe on the online shopping websites.
Analyse the impact of online shopping on the individual life style
As per the view of Stelzner and Michael, A., (2011) in the today's time, online shopping
is continuously increased in the large manner because every one wants to save their time as well
as money. In the today's time, every one is so much engaged and its directly impact on their life.
Due to the shortage of time, individual wants to purchase the commodity in frequent manner so
as they do not need to go to physical stores. With help of online shopping, customers can easily
save their time as they can place the order by online website. With help of various information
on the internet about the items and services, customers can easily analyse their purchasing
decision and purchase the product online. Online shopping is not just beneficial for company but
also it is beneficial for all customers because this has improved the standard of life of human
being. In the opinion of Safko and Lon, (2010) with help of online shopping website, individual
have improved its life style in large manner and also they are able to save their time and money.
With help of this aspect, they can purchase the commodities from the multinational companies
which improve their standard of living and life style. They can explore their choice and
purchasing decision with help of online website for shopping. Thus, it can be said that with
assistance to the tr\end of online shopping, customer and organisation have largely beneficial in
various aspects. In the context, they are able to improve their life standard as well as save their
time and money.
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Changing Landscape of Online Shopping in India. 2016.[Online].Available
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What Impacts Consumer Buying Behavior?.2017.[Online].Available
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