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E-commerce Assignment Influence on Customers

   

Added on  2020-05-11

7 Pages1762 Words67 Views
Running head: INFLUENCE OF E-COMMERCE ON CUSTOMERSInfluence of Social E-commerce variables on online shopping behaviors among customersName of the Student:Name of the University:Author Note:

1INFLUENCE OF E-COMMERCE ON CUSTOMERSE-business refers to any business which uses internet technology to improve profitabilityand productivity. It refers to all such aspects of running the business which is included in sellingthe goods and services such as procurement, earning and retaining customers, marketing,developing customer education and business partners. It can be said that e-business became anextension of e-commerce and it encompasses all aspects of businesses which functions online. E-commerce came in the late 1970s but the general customers were introduced to e-commerce inthe year of 1994. By the end of 2000, most of the businesses in Western Europe and Americapresented their goods and services online and thus this gave birth to e-business. E-bay andAmazon were the first e-businesses which carried out electronic transaction. E-business wasadvantageous to the vendors as well as the customers. It was advantageous over bricks andmortar stores (Joshi & Rahman,2015). E-commerce and e-business also allowed the vendors tokeep a track of the preferences and purchases of the customers. Moreover, they also offeredmonetary savings to the customers and the ability to reach the customers. Both e-commerce ande-business offered online storefront and complete with the virtual shopping cart that can be e-mailed to friends and families. The consumers are also easily and quickly exposed to e-businessbecause it uses more in-depth education and targeted marketing compared to other traditionalmodes of businesses. The customers can also compare the prices quickly on online stores whichoffer the best price to them. E-business also has an electronic chat function which is used fortechnical and customer support. This paper will highlight the five factors which affects the onlineshopping behavior of the customers. This paper will also help the consumers to know theadvantages of online shopping (Filieri & McLeay, 2014).Customer satisfaction is an important factor which affects the shopping behavior of thecustomers directly. In order to be accepted and confirmed by the customers, the companies

2INFLUENCE OF E-COMMERCE ON CUSTOMERSwhich deal with online services must provide the greatest delivered value so that the customersare loyal and are in advantageous position. The companies also measure this value by comparingthe customer’s satisfaction and the factors which affects customer satisfaction such as value,customer needs and cost (Hajli, 2014). Customer satisfaction is also essential to gain financialperformance of the services in a company and thus it plays an important role in the company inorder to gain satisfaction. The companies that have developed rapidly with the increasing ace oftechnology have been able to achieve customer satisfaction and loyalty easily at a much lowercost. It has also been found that that e-commerce has significantly changed the way in which thebusiness operates (Cantallops & Salvi, 2014).Trust is another important factor which affects the buying decision of the consumers.Trust is directly connected with security. As the consumers cannot see the product physicallywhile he is ordering it and he/she cannot have a glimpse of the salesperson, so it is vital for thecompanies to build trust among the customers in order to avoid that kind of uncertainty. Brandtrust and loyalty plays an important role to overcome the disadvantages of internet to thecustomers. The consumer’s fear of online fraud is also one of the major reasons as to why theconsumers are not using the e-commerce frequently (Zhang & Kim,2013). It is also seen that theperceived risk which is related to the consumer’s fear of losing the transaction are also doneonline. The risk is also related with the chance of purchasing the product or service. Moreover,the perceived value of the product is positively associated with the consumer’s intention ofbuying the product over the internet and this also contributes to e-loyalty. This also minimizesthe customer’s needs and wants to go after alternative products. The risk which is associated withthe online shopping behavior includes the product risk, non-delivery risk and the financial risk(Kumar & Ghodeswar, 2015).

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