Literature Review on Customer Buying Behaviour and Online Shopping

This report presents a literature review focusing on customer buying behavior and online shopping trends within the context of Nepal. It examines the evolving preferences of consumers, highlighting the increasing shift towards online platforms for purchasing goods. The review analyzes key factors influencing customer behavior, such as convenience, price competitiveness, and the availability of discounts, along with the impact of online shopping on consumer choices. It also explores the advantages of online shopping, including time-saving benefits and a broader selection of products, while considering the influence of market research, demographics, and consumer lifestyles on the e-commerce landscape. The report references key studies and models to provide a comprehensive understanding of the subject matter.

BUSINESS RESEARCH
A Literature Review of Customer Buying Behaviour and Online Shopping in Nepal
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Referencing Style: Harvard
Word Count: 550
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BUSINESS RESEARCH
Table of Contents
1. Literature Review........................................................................................................................2
1.1 Customer Buying Behaviour and Online Shopping..............................................................2
1.2 Factors Affecting Customer Buying Behaviour on Online Platforms...................................3
1.3 Advantages of Online Shopping and its Impact on Customer Buying Behaviour................4
References........................................................................................................................................5
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1. Literature Review
1.1 Customer Buying Behaviour and Online Shopping
The behaviour of the customers keeps changing according to the latest trends and their lifestyle.
In the modern world, people mostly purchase products through online channels when compared
to offline mediums. It is noted that people now mostly want to save their time and hence tend to
purchase products, which are easily available on online shopping websites (Díaz, Gómez and
Molina, 2017). Further, as compared to retail or offline stores, products that are sold online are
cheaper and thereby has a higher preference. Online shopping has given the opportunity to
consumers to shop freely without wasting their time visiting stores and bargaining. The online
retailer shops provide their customers with numerous ranges of offers and discounts such as free
delivery, return and exchange policies and many more.
In Nepal, maximum people of the nation involve in buying fashion products and has a need to
live a higher standard of living at a lower cost. Some of the online stores which is highly popular
in Nepal are Nepbay.com, Muncha.com, and Sastodeal.com. Relevant information about the
competition in the market is very important to understand the competitive company's business
style and their strengths. It will definitely bring relevant information's to make new changes and
improvements in their products. And after the research, the main motive of the online shopping
companies will be focusing on the target customers and to segment the audiences according to
their choices, likes, beliefs, and expectations. After that, the main functions of the online website
companies will be prioritizing the target consumers and to influence them to purchase their
products and services.
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Figure 1: Factors Impacting Online Shopping and Customer Buying Behaviour
(Source: Gatautis et al. 2016)
1.2 Factors Affecting Customer Buying Behaviour on Online Platforms
The main criteria which have to understand by the online shopping website that what their target
customers want and in which range they want. The companies need to do market research and to
gather relevant information about their values and expectations (Gatautis et al. 2016). The
different areas which are needed to do by the online shopping websites for understanding their
target customer’s behaviour. Customer research is the main thing which is important to consider
and determine by the online shopping websites to do market research to identify their target
customers. The next step will be trying to understand the expectations of the target customers.
The market research is generally based on the demographics, their areas of choice, their beliefs
and values.
The main things which the e-commerce companies have to consider while doing online hopping
business are that they need to pay attention to their product quality, quantity, price logistic,
delivery. These things will definitely give positive advantages to the companies in order to make
a good number of business from the target market. The lifestyle of the consumer also plays an
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important role in regard to modifying the product and making availability of their choice of
products in their online websites.
1.3 Advantages of Online Shopping and its Impact on Customer Buying Behaviour
According to Amaro and Duarte (2015), there exists several benefits of online shopping, these
have been listed as follows:
 It is the most convenient way to purchase products and services without wastage of time.
 It gives different ranges of specified products and services at affordable prices (Amaro
and Duarte, 2015).
 The prices can be compared after researching and comparing it to other online shopping
websites and can easily opt to make the purchase.
 In online shopping, there are less bargaining process, no pressurize of the shop salesman
and can comfortably by whatever the customers want to purchase.
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References
Amaro, S. and Duarte, P., 2015. An integrative model of consumers' intentions to purchase travel
online. Tourism management, 46, pp.64-79.
Díaz, A., Gómez, M. and Molina, A., 2017. A comparison of online and offline consumer
behaviour: An empirical study on a cinema shopping context. Journal of Retailing and
Consumer services, 38, pp.44-50.
Gatautis, R., Vitkauskaite, E., Gadeikiene, A. and Piligrimiene, Z., 2016. Gamification as a mean
of driving online consumer behaviour: SOR model perspective. Engineering Economics, 27(1),
pp.90-97.
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