University Report: Impact of E-Commerce on Customer Buying Behavior

This report delves into the significant impact of e-commerce on customer buying behavior, analyzing various factors that influence purchasing decisions. It reviews two research papers, exploring how online platforms affect consumer choices, including aspects like convenience, trust, marketing strategies, and the role of social media. The report examines both internal and external factors shaping consumer behavior, such as demographics, technology usage, and psychological processes. It highlights how e-commerce provides consumers with more choices and the ability to compare prices, influencing their purchasing power. The analysis emphasizes the importance of online trust, website design, and marketing in shaping consumer behavior within the digital marketplace, offering insights into how businesses can effectively engage with customers online. The report also touches on the role of social media in promoting products and services and its impact on marketing strategies.

Running head: IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
Impact of E-Commerce on Customer Buying Behaviour
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1IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
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Paper 1
Mittal, A., 2013. E-commerce: It’s Impact on consumer Behavior. Global Journal of
Management and Business Studies, 3(2), pp.131-138.
Review
With the increasing development of internet and its usage in the business and other
perspectives are impacting on the behaviours of the customers who uses the internet to
purchase products. Business organizations are spending more and more in order to acquire
larger segment. The internet can help the business organizations to enhance the buyers
purchasing behaviours more proficiently and adequately than different other channels to fulfil
their requirements related to specific product (Raghupathi and Fogel 2015). Through the
diverse search engines available on internet the consumers can spare time to access to find
out the product related data, and which data with blend of videos, sound and picturesand
extremely point by point content portrayal to help purchaser learning and picking the most
appropriate item from the most appropriate online platform.
Individual customers buy services and products from the physical or online store
depending on their level of trust in that item or services and dealers/sellers of the product in
the store or online. On the web trust is the fundamental and basic component for building a

3IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
long lasting with clients. Different researches in the recent times demonstrates that online
trust is bring down level than the trust in the personal connections in the physical store.
The online stores or the e-commerce gives the most important thing convenience to
their customers as the principle reason behind the online purchases of the buyers concurred
by the majority of analyst and researchers. Due to the element of Internet, it enables client to
shopping on the web whenever and anyplace, which implies customers can peruse and
shopping on the web 24-hours per day, 7 days seven days from home or office, which draws
in some time-starved customers come to Internet for spare time to seeking items in physical
store (Huang and Benyoucef 2013). Furthermore, Internet offers a few great approaches to
spare cash and time without too much physical effort which is required in case of the
physical stores.
According to the author Hajli 2015, the customer behaviour is mainly impacted by the
two factors which are, internal and external factors. External variables on the customers are
originated from the environmental conditions, and internal factors are for the most part from
the buyer’s mind and perception. There are many variables could impact buyer's practices on
the online platform (Ioanăs & Stoica 2014). As indicated by the external factors that impacts
on the buyer behaviour could partition into five parts: Demographics, socio-financial aspects,
public policies, use technology; culture; sub-culture; reference and marketing of the online
stores. The impact due to the internal factors are assortment of psychological processes in the
buyers mind, which incorporate learning, perception about the store, motivation to buy
products etc.
The reliability of E-commerce sitesis extremely depending on the how much
protection or securitycan the site provide to the user’s personal and financial data shared with
the site and the user. For instance, a very specialized SSH channel to transmit data can be a

4IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
factor to impact the reliability of the site (Mittal 2013). As specified over that the web vendor
can give outsider confirmation to E-business site, and keeping in mind that this protection
and security procedures are utilized, clients will think their E-commerce exchanges through
Web are secure and therefore the webpage is more dependable to them. Close to this point, if
the Ecommerce site can give the data about their client services,contact details, and a help a
tool on the site. This could likewise build their trustiness to the clients or customers.
The process of making decision for the customers are similar regardless the consumer
is online or offline. In the present scenario the major factors that makes the difference in the
purchase behaviour are the marketing of the products and the services as well as the
purchasing environment (Hoban and Bucklin 2015). In case of the traditional customer
decision making model, Consumer purchasing choice normally begins with requirement
awareness, search for the information, elective assessments, choosing to buy lastly, post-
purchase behaviour by the customers.
Role of the marketing in influencing the purchase behaviour
As far as online communications is concerned affecting the behaviour of the users,
when the customers observes online promotions on the internet platform, they attracts the
customer’s attention and stimulates their interest for specific items or services on a specific e-
commerce platform. Before they choose to buy, they require extra data to help them out in
determining the trustworthiness of the site for which they had observed the promotion. In
case the customers do not have enough data/information about the service or product, they
will look through online channels to collect the required data. Such asonline indexes, sites, or
web search engines. Whenever clients have enough data, they analyse those selections of
items. In the inquiry organize, they may search for the expert product reviews or the customer
reviews who had bought or used the service from the same platform. After exploring the data
collected they willdiscover which e-commerce organization offers them the best option for

5IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
their desired product or service. Amid this stage, efficient site design and its usability are
essential things to induce purchasers to be occupied with purchasing products on a specific
site. Besides, the data sources inclination may impact purchasing behaviour of the customers.
Consumers can purchase anything at any time without traversing to the different
physical stores so that they can find the similar product at lesser price by comparing different
e-commerce sites simultaneously.Since on the web stores offer clients with assortment of
items and administrations. It gives the customers more choices toanalyse cost from various
sites and discover the products with lesser costs than purchasing from physical stores. Few
sites, such as EBay for instance, offer customersauction alternative, so they can make a
decent pricing for their desired products or services they want to buy.
Paper 2
Lim, Y., Osman, A., Salahuddin, S., Romle, A. and Abdullah, S. (2016). Factors Influencing
Online Shopping Behavior: The Mediating Role of Purchase Intention. Procedia Economics
and Finance, 35, pp.401-410.
Review
The impact of consumer behaviour is one of the most common matters that are being
studied by the marketers, entrepreneurs and the researchers from the past and still going on.
The researchers study about the different aspects about how the behaviour of the consumer
changes due to e commerce. The overall performances of the enterprises have become a key
factor in understanding behaviour of the customer. The rises in competition in the industries
that are retail have mainly leaded to understanding the reasons for raising the impact of
customer behaviour in Australia. This research study deals with all the areas of research
background that deals with consumer behaviour which addresses works of marketers and

6IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
researchers. There are mainly five different impacts of making consumer behaviour more
effective in related to e-commerce.
The study of behaviour that is related to consumer buying is taken as the part of
marketing and the main motive is about the way to learn all the possible way on how the
individuals, buy use, dispose goods, and the choose of organizations and factors related to
taste, price, branding and experience are the factors that the consumers takes decision on
purchasing some products. Such one of the studies that is related with behaviour of consumer
buying is conducted by Lim et al. 2016. The study aims to this study is to get the impact of
experiences that were studied previously. The study of e- commerce is divided into four
different categories that are considered as the characteristics for selling and buying parties.
The categories that comes under the e- commerce category are B2B (business to business),
B2C (business to consumer), C2C (consumer to consumer) and lastly C2B (consumer to
business).
The online marketing e- commerce comes under the category of consumer to business
marketing. With the increase of internet, companies reach to the rooms of customer easily.
The transactions that are made by the buying and selling of products are also done online.
Online tractions are very much protective and secure methods for buying products online.
There are also many sites available that gives same services and same products at different
rates. For instance- a website named as Priceline.com provides the companies to get tickets of
airline, hotel room, salon’s appointment to the customer very easily. The internet can help the
business organizations to enhance the buyers purchasing behaviours more proficiently and
adequately than different other channels to fulfil their requirements related to specific
product. Through the diverse search engines available on internet the consumers can spare
time to access to find out the product related data, and which data with blend of videos, sound
and pictures and extremely point by point content portrayal to help purchaser learning and

7IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
picking the most appropriate item from the most appropriate online platform. The most
advantage of using e-commerce as a media for buying and selling is that a particular product
or service gets the feedback very soon. It is not possible in offline transaction.
The purchasing decisions that are made by the customers are mostly done online in
this present day. The technology of website is making the internet social and customers that
creates content that has increased the time of development. If the customers do not have
enough data/information about the service or product, they will look through online channels
to collect the required data. Internet offers more approaches to spare cash and time without
too much physical effort which is required in case of the physical stores (Zhang, Gupta and
Zhao 2014). The social media is the new way of promoting the products and services over the
internet. The evolution of social media has created deep results in the world of marketing.
Now a day the marketing teams of a business are putting their businesses add on the social
media to promote their products more spontaneously. For instance, a company that deals with
flowers has put their advertisement on the Facebook creating an online social media platform
for the company.
Factors Influencing Purchasing Behaviours of Customers
The factors that influence the customer behaviour in purchasing products and services
are described below:
Purchasing Power: For increasing the customer behaviour, purchasing power plays
an important role in the marketing sector. The purchasing capacity of the customers are
analyzed by generally by making decisions that are related to the products that are needed for
buying and selling of product. Even if the product is very good, the purchasing power of
customer is not known, den the sale of the product goes down. The customers are segmented
in the basis of their purchasing product; it is easy to determine the eligibility of the customer.

8IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
Marketing Campaigns: Marketing is the most important factor that helps in making
the decisions of the customers. The marketing campaigns help to shift the market shares in
the industries that are competitive by increasing the decisions of the customers. The
campaigns that are done for increasing the sale of the products of services are all done on a
regular basis. The transactions that are made by the buying and selling of products are also
done online. Online tractions are very much protective and secure methods for buying
products online.
Economic Conditions: The economic situations that are that are present in the market
plays important roles in decisions that are spend by the customers. This is most effective for
purchasing houses, vehicles and appliances of other household products. An economic
condition that is positive is considered to make the customers more willing and confident to
buy the product. This does not depend on the financial liabilities of the person who are
buying the products.
Personal Preferences: The customer behaviour is motivated by different shades of
dislikes, likes, morals, values and priorities at this personal level (Kim, Wang and Malthouse
2015). The style of fashion, personal care and food depends on the each customer and all are
different from each other. The products that are shown to the customers are shown according
to the preferences that are made by the customers. The internet can help the business
organizations to enhance the buyers purchasing behaviours more proficiently and adequately
than different other channels to fulfil their requirements related to specific product. Personal
preferences are defined by the personal requirements.
Group Influence: The decisions that are made by the customers are also affected by
the group influence. The group influence mainly comes from classmates, relatives, family
members and influential group that are secondary (Chiu et al. 2014). The secondary group

9IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
that influences customers consists of acquaintances and the neighbours. There are many
examples of influence of group such as foods that are homemade are liked by all groups of
people. The group influences to changes the decisions of a person. This is also an important
factor for influencing the customers in the e-commerce sector.
Conclusion
From the above literature review of the authors, it is known that the consumer buying
is taken as the part of marketing and the main motive is about the way to learn all the possible
way on how the individuals, buy use, dispose goods, and the choose of organizations and
factors related to taste, price, branding and experience are the factors that the consumers takes
decision on purchasing some products. The impact of consumer behaviour is one of the most
common matters that are being studied by the marketers, entrepreneurs and the researchers
from the past and still going on. The researchers study about the different aspects about how
the behaviour of the consumer changes due to e commerce.
Introduction
The overall performances of the enterprises have become a key factor in
understanding behaviour of the customer. The rises in competition in the industries that are
retail have mainly leaded to understanding the reasons for raising the impact of customer
behaviour in Australia. This research study deals with all the areas of research background
that deals with consumer behaviour which addresses works of marketers and researchers. The
study of behaviour that is related to consumer buying is taken as the part of marketing and the
main motive is about the way to learn all the possible way on how the individuals, buy use,
dispose goods, and the choose of organizations and factors related to taste, price, branding
and experience are the factors that the consumers takes decision on purchasing some
products.

10IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
References
Chiu, C.M., Wang, E.T., Fang, Y.H. and Huang, H.Y., 2014. Understanding customers'
repeat purchase intentions in B2C e‐commerce: the roles of utilitarian value, hedonic value
and perceived risk. Information Systems Journal, 24(1), pp.85-114.
Hajli, N., 2015. Social commerce constructs and consumer's intention to buy. International
Journal of Information Management, 35(2), pp.183-191.
Hoban, P.R. and Bucklin, R.E., 2015. Effects of internet display advertising in the purchase
funnel: Model-based insights from a randomized field experiment. Journal of Marketing
Research, 52(3), pp.375-393.
Huang, Z. and Benyoucef, M., 2013. From e-commerce to social commerce: A close look at
design features. Electronic Commerce Research and Applications, 12(4), pp.246-259.
Ioanăs, E., & Stoica, I. (2014). Social media and its impact on consumers
behavior. International Journal of Economic Practices and Theories, 4(2), 295-303.
Kim, S.J., Wang, R.J.H. and Malthouse, E.C., 2015. The effects of adopting and using a
brand's mobile application on customers' subsequent purchase behavior. Journal of
Interactive Marketing, 31, pp.28-41.
Lim, Y., Osman, A., Salahuddin, S., Romle, A. and Abdullah, S. (2016). Factors Influencing
Online Shopping Behavior: The Mediating Role of Purchase Intention. Procedia Economics
and Finance, 35, pp.401-410.
Mittal, A., 2013. E-commerce: It’s Impact on consumer Behavior. Global Journal of
Management and Business Studies, 3(2), pp.131-138.

11IMPACT OF E-COMMERCE ON CUSTOMER BUYING BEHAVIOUR
Raghupathi, V. and Fogel, J., 2015. The impact of opinion leadership on purchases through
social networking websites. Journal of theoretical and applied electronic commerce
research, 10(3), pp.18-29.
Zhang, H., Lu, Y., Gupta, S. and Zhao, L., 2014. What motivates customers to participate in
social commerce? The impact of technological environments and virtual customer
experiences. Information & Management, 51(8), pp.1017-1030.