Online Purchase: One of the Trending Sales Methods

2021-05-13 19:38:57
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Online purchase has emerged to be one of the trending sales methods in e-commerce in the current market. It has been identified overtime that there are various factors which affects the way customers respond to the services they receive online in Bangladesh. They include the customers intentions, perceived risks, previous online shopping experience and the benefits they acquire from purchasing online as oppose to face to face. The paper analyzes the factors which influences customers purchase intention via online transactions in Bangladesh. Online shopping has been commenced already in Bangladesh but its terms are new and unfamiliar to the customers. The Bangladesh customers have been known overtime not to be aggressive to shop online but their progress can be felt. Their attitude shop depends on expectation and the level of satisfaction they attain from a specific store. In general it has been identified that the consumers intention and ability to buy products through online means is based mainly on their experience, perceived risks, benefits and the prices charged in the market.

 

1.0 Introduction

Sales and marketing is the cornerstone of every business unit across the world. When accompany have upgraded their system to adopt online sales, customers response and behavior to the changes should be considered. Consumer behavior is the study of individual, group or organizations respond to a new system and or experiences in their surroundings (Dai, Forsythe,& Kwon,2014). The behavior of consumers normally varies depending on the choices they make which influence their buying habits. It is very difficult to define behavior of a consumer since the power to make choices is sovereign. Thus, managers can only determine the future prospects of online shopping by utilizing the historical information to predict outcome of the respective consumer behavior. (Chu & Lee, n.d., p. 54) The purpose of the study is to determine the intention of the Bangladesh consumers to use online shopping across the stores. Moreover, it will identify the types of risk, the benefits and consumers previous online buying experiences in Bangladesh. Besides, the researcher is deemed to identify how the products are differentiated to meet customers needs. Quite often, consumers behavior is determined by how easy they can access the products and prices charged by the sellers (stores) in the market. Therefore, it is believed that online services will provide a solution to the dilemma and difficulties that the customers have been involved in over time. The purchasing dilemma to be resolved includes the difficulty of buyers to choose between many choices. Online displays will give clear and appropriate distinction between the benefits and demerits of each good or service hence eases buyers problem of choice.

1.1 Improving Online B2C Shopping Intention in BangladeshLinking with world digital business or e-commerce is the main agenda for the government as well as people of Bangladesh. Including people or customer with online shopping culture is critical for developing e-commerce in our country. Overcoming the problem of infrastructure of information technology is not sufficient to develop the online shopping culture or e-commerce in our country. Improving customers purchase intention is important in this regards.

Determining target customers: Young, educated, innovative and high income group are the main customers of online shopping (Swinyard & Smith, 2003; Limayem et al., 2000). Middle aged and retired high income customer also buy through online. In Bangladesh those group of people lived in urban area. The Business organization can target those groups of people and provide such online shopping services in divisional urban area.

Developing customers attitudes: Customers attitude towards online shopping depends on his or her perception about the benefits, consequences, privacy, security and willingness of interactions ( Limeyem, et al. 2000; Shih, 2004; Wu,2003). The business organizations need to assist the customer to develop the positive perception regarding these aspects. Meanwhile, the life style and personality also affect the attitude of customers towards online shopping (Wu, 2003). Business organizations need to focus on this issue of customers. The activities and services of the organization and security and privacy condition of online transaction will motivate customers for online shopping.

Ensure social support: Role of social culture and media is important for developing positive intention for online shopping (Limayem et al., 2000). Our social culture is not supportive for developing online shopping intention. Performing positive and motivating role by the media can assist developing social voice in favor of online shopping gradually. Advertisement, focus group discussion and role playing by socially respected and accepted person can be influential for developing social support for online shopping that ultimately motivate people.

Minimizing associated risk: Financial risk is critical for developing online shopping intention(Koyuncu&Bhattacharya,2004;Swinyard&Smith;Shankar,etal.2003).Moreover, security and privacy are also control variables that influencing the customers preference for online shopping (Miyazaki & Fernandez,2001;Vdo,2001,Shankar, et al. 2003;Zhou, et al. 2007). Required security infrastructure need to be insured. Developing required legal support, security and privacy rules the Government, business organization and financial institutions can assist combined in developing customers intention for online shopping.

Developing product and service: offering product and services is very important for motivating customers intention to purchase through online (Chiang & Dholakia, 2003). Product should be differentiated, perishable, durable, and comparable. Fabrics, electronics, leather goods, books and other publication, fashions are the most common items for online shopping. Online grocery is also possible if proper packaging and delivery can be made effectively. Products chose for online shopping should focus the customers lifestyle and personality.

Developing support system: Developing customers intention depends on how far organization and government ensure the required facilities such as site accessibility, reasonable web site loading speed, good product description, transaction efficiency and navigation efficiency (Limayem et al.,2000). For all these facilities need to ensure effective internet infrastructure in our country. In Bangladesh, sufficient IT experts are available, but need coordinated effort by the government, private and public organizations, and financial institutions to develop secured and effective internet infrastructure.

1.2 Objective of the studyTo determine consumers behavior, their attitude and experiences towards online shopping and thus show the benefits they can get from choosing this option within and without Bangladesh.

To determine the consumers characteristics and their experience in accepting online shopping in their daily business transaction within and without Bangladesh.

To determine the effects of perceived risks in online shopping, prices and ease of access to the product over time.

1.3 Scope of the studyThe study was conducted at Dhaka Rajshahi region in which the participants were mainly the online or internet users. The main aim of the study was to determine the consumers intention of the online shopping as well as determining the level of satisfaction among the current Bangladesh clients. It was also to find out the target clients of online shopping hence helping the company to know the whether they are lagging behind their competitors or not. It will also help the company to identify if they can adjust their sales and invest in market and sales promotion to boost the customer awareness.

The project covers mainly following areas:

1.4 Research QuestionThis research objects to fill up gap by addressing two research questions: Does the implementing of online based B2C shopping actually lead to new trading opportunities for customers in Bangladesh? Besides, How can Government and technology help customers in Bangladesh to participate in B2C shopping?

2.0 Literature Review

2.1 Theoretical literature

There are various models which are used to explain the response of consumers to online services provided by firms and other financial institutions. Researchers have used various model to clarify their intention to shop online and eventually gave a vivid clarification over the factors affecting consumers intention to purchase online as well as the benefits they can acquire. The main used model is the classical consumer online and purchasing decision-making model which mainly covers the routine behavior of the consumers in the market. (Nafisa, Kasem, Nasrin,&Shamima,2014).Classical consumer model also contains a traditional method which is a five stage model of consumer behavior. The first stage is the formulation of the state of deprivation and then proceeds to seek information on the problems consumers face in various markets as they shop online. The information acquired provides ground for making choices from different courses of actions and gives room for considering a different point of view while shopping online or providing services to customers in Bangladesh. (Bhatnagar, Misra, & Rao, 2000) The evaluations and comparisons will thus give customers a gist of the market composition and enable them to make sound decisions to shop online or just acquire goods directly in the chain store. Besides, consumers will also carry out post purchases analysis to determine the level of satisfaction they have got through online shopping as compared to the direct purchases from the stores. It is essential for the company also to engage the services of E-marketers to help in influencing decisions in which consumers make overtime.

2.1.1 Consumers intentions

It shows the consumers willingness to use the online services to purchase goods and services and compare prices or costs used in online shopping systems. The attitude of consumers to online shopping is a very critical factor affecting the actual purchases made by consumers. There are various models which have been developed to explain shopping intention towards Internet shopping in general. According to Jarvenapa and Todd, there is a model which explains the consumer's intentions. The model is compost of indicators which belong to four main categories. They include Bangladesh customers shopping experience, the value of the products, quality of the service offered and the risks perceptions of Internet retail shopping (Rakesh, & Madhushree, 2015).Also, other researchers propose a nine-factor model which explain customer's perception about online shopping (Bashir, 2013).The exposures of perception were the main discriminator between the ch...

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