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1、Consumer Behavior of Online Shopping IntroductionWith the development of online shopping countries in the world of the Internet economy in terms of both breadth and depth greatly improved and achieved remarkable results,consumer behavior of online shopping should be paid special attention. Marketers
2、 have to analyze and understand not only consumers of their products and brands but also consumers of competitive offerings and the reasons they purchase competitive products.Focusing on consumer behavior is significant for marketers to get a deeper understanding of their target customers, and that
3、is also the basis for marketing decisions. Today many successful network companies in the world, such as E-bay, Amazon, have become so due to designing the entire organization to observe their customers, so as to make the entire marketing strategy to provide a better service.This essay attempts to a
4、nalyze consumer behavior of online shopping by three sections: consumer buying motives, consumer decision-making process and factors that influence consumer behavior of online shopping, and give marketing strategies based on the analysis above.Consumer behavior and online shopping overview“Consumer
5、behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.” (Homburg, Christian, Kuester, Sabine, Kr
6、ohmer, Harley, 2013) According to J. Paul Peter and Jerry C. Olson (Peter,Olson,2005), consumer behavior involves the thoughts and feelings people experience and the actions they perform in consumption processes ,and it also includes all the things in the environment that influence these thoughts, f
7、eelings, and actions. Purchase behavior is constituted by the psychological and behavioral processes.Internet use has grown rapidly since the mid-1990s. “Online retailing became big business in late 1998, as millions of people placed orders for holiday gifts online and retailers scrambled to upgrade
8、 their distribution networks to cope with the growth of online shopping.” (Lohse, Gerald, Bellman, Steven and Johnson, Eric J, 2000) Online shopping is a shopping behavior of electronic and networking, by needs, motivations, attitudes, intentions and actual shopping behavior. “With the growth of onl
9、ine shopping, comes a wealth of new market footprint coverage opportunities. The commercial success of websites is testament to how internet business can be highly profitable.” (Boyd, Cathrine V,2010) For a summary of Internet usage statistics, see Table 1Table 1 Internet use statisticsEuropeUSAAust
10、raliaUsage 393,373,000220,141,00016,736,000Usage growth 2000 2008274%130%153%Consumer buying motivation of online shoppingAccording to Nair and Suja R, motivation is a prominent factor which indicates the individuals response to a stimulus. (Nair, Suja R, 2009) To understand motivation is to underst
11、and why consumers do what they do. “Marketers today need to get into the mind of the customers to understand the needs and wants.” (Kumra, Rajeev,2007) “Buying behavior is not only a function of the product, it is also, and in some cases perhaps more so, a function of the consumer.” (Patel, Schlijpe
12、r,2004)In my opinion, online consumer buying motivations can be divided into two categories: require motivation and psychological motivation.There are three needs of require motivation, which are gather needs, interested needs, and communication needs. As the accelerated pace of life, people rarely
13、have time together, networks provide a chance that people have the common topic can get together. People generate interest for online shopping because of curiosity or virtual Shopping satisfaction. They share information about online shopping experience and the quality of items.Psychological motivat
14、ion is due to awareness, emotion, will, and other mental processes caused by buying motives, which can be divided into three types: intellect, emotion and patronage. When buying higher-value durables or luxury goods, consumers generally rational analysis the quality of goods. However, emotional moti
15、vation caused by love, satisfaction and curiosity, sometimes people's sense of morality, aesthetics also stimulated to it. Only by understanding the motivations of online consumers can the companies predict consumer shopping behavior in order to take appropriate promotional measures.Consumer dec
16、ision-making processConsumer behavior is a process which is a response to a problem. The consumer decision process intervenes between the marketing strategy, as implemented in the marketing mix, and the outcomes. “Consumer problems arise in specific situations and the nature of the situation influen
17、ces the resulting consumer behavior.” (Hawknis, D. I., Mothersbaugh, D. L., Mookerjee, 2011) Marketing and other stimuli enter the consumers “black box” and produce certain responses, as shown in the figure below. Marketers must figure out what is in the buyers black box.Figure 2 Models of consumers
18、 black box(Wilhelm Cauer, 1941)Consumers need to go through a series of steps in order to make a purchase decision. These steps can be described as:l Problem recognition. Caused by the consumer demand and the reality state.l Information search. “Seek relevant information about potential solutions to
19、 the problem from external environment, or activate knowledge from memory.” (Peter,Olson,200 )l Alternative evaluation and selection. Evaluate alternatives of salient beliefs about relevant consequences and then to make a choice.l Outlet selection and purchase. But the chosen alternative.l Postpurch
20、ase processes. Use the chosen alternative and evaluate it again in light of its performance.Factors that influence consumer behavior of online shoppingLike traditional shopping, online shopping also suffers from two effects: external Influencesand Internal Influences. Everyone living in a certain so
21、cial environment and have direct or indirect contact with other members of society, groups and organizations, so they also affected by the external environmental factors in the same time.Culture, demographics and social stratification ethnic, religious and regional subcultures, families and househol
22、ds, groups restricts customer purchase behavior. “For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.” (Pant, Himanshu, 2007)Internal influences include: perception, learning, memory, motives
23、, personality, emotions, attitudes and so on.Self-concept is the totality of an individuals thoughts and feelings about oneself. Lifestyle is how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them. The figure shows below well expla
24、ined how these interactions affect each other.Figure 3 Overall conceptual model of consumer behaviorBesides, consumer behavior of online shopping also affected by network-specific factors as following:l Online Advertising. Compared with television, radio, newspapers, magazines and other forms of adv
25、ertising, internet advertising can be more flexible, lower cost, strong sensory, wider dissemination and other advantages.l Online payment security. It has a direct impact on consumer decision since they usually pay for the goods before get it.l Internet marketing services. Pre-sale service determin
26、es whether the customer buying or not, while after-sale service determines whether them to buy again or not.These factors influence consumer shopping behavior research and analysis can better grasp online consumer regular shopping behavior. Enterprises based on these factors influence consumer shopp
27、ing behavior to develop effective marketing strategies in order to survive and develop.Marketing strategies based on consumer behavior online“Online Business-to-Consumer marketing requires marketers to understand consumers and deliver the products and services consumers want and need, just as tradit
28、ional marketing does.” (Peter,Olson,2005) “Online consumer purchasing behavior is needed to help companies define their online marketing strategies.” (Lohse, Gerald, Bellman, Steven and Johnson, Eric J, 2000)Through the earlier analysis of the essay I will give some network marketing strategies that
29、 based on consumer behavior online:l Brand. One of the important tasks for companies is to quickly establish a brand image and promote the corporate brand achieve improvement. In a certain extent, the value of the network brand even higher than the value of obtained directly from the network. l Prod
30、uct. Product sales from network costs far less than other sales channel, so properly select target customer and target market will make greater profits.l Price. Since the openness of information online, consumers can easily share the price of each competitor. Companies should emphasis the performanc
31、e of their products are better than competitors.l Promotion. Online advertising promotion is a quick way to reach the promotional purposes. Through online advertising can develop more potential consumers and do publicity for the enterprises.l Services. Internet marketing and traditional marketing mo
32、del also differs from its unique mode of interaction. Services strategies should be made base on the particular characteristics of the company in order to be more flexible and impressive.l Website. Purchasing decisions online are often constructed while navigating through Internet stores, meaning th
33、at the actual page layout can be a determining factor in predicting purchases (Mandel & Johnson, 2002). Small and medium-sized enterprises can choose the comparative advantages of the address to establish their own web site, after the establishment of special maintenance, and pay attention to pu
34、blicity, that also can save the original traditional marketing much more advertising costs, and the search engine will enhance the use of search rate. ConclusionThis is not difficult to see that understanding consumer is a critical element in developing successful marketing strategies. “Due to the e
35、xistence of diversity among individuals be it consumers, marketers, culture and social environment, across borders (Globally) and even consumer behavior theorists, there is no doubt the study of consumer behavior is very vital for marketers.” (Nair, Suja R, 2009)Consumer buying motivation, consumer decision-making process, factors that influence consumer behavior in the network environment are somewhat different from traditional shopping environment. Marketing strategies are given based on the differences to he
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