As Internet is becoming more widely used, online shopping is also growing tremendously. As many businesses are attempting to globalize their sales, Internet becomes the primary means of advertising and selling their products or services worldwide. Many businesses are creating web pages in addition to their retail stores, and many start their businesses with online stores alone. Online store is the number one remote shopping method that consumers use nowadays, on top of phone orders, mailing, ect. A recent study found that approximately half of U.S. populatoin have made purchase online (Miyazaki & Fernandez, 2001 ). Although there are advantages of online shopping that attract consumers, there is room for further growth of online shopping. There are many factors that contribute to customer satisfaction when shopping online. Most importantly, customers need to trust online businesses to shop on their Web sites. Thus primarily, online vendors need to build customer trust. Consumers' mistrust about online vendors and risk perceptions about onlins shopping can discourage further growth of online shopping. In addition, other technological factors, such as ease of finding products and delivery speed, are important to satisfy customers. This Web site will examine advantages and customer concerns relating to online shopping and provide possible solutions to these concerns in order to reduce negative perceptions and to facilitate shopping for higher customer satisfaction.
Advantages
Convenient
Convenience includes the overall ease of finding a product, time spent on shopping, minimization of overall shoppoing effort (Schaupp & Belanger, 2005). Online shopping allows consumers to shop at the convenience of their own home, and to save traveling time to retail stores and spend their time on other important tasks and hobbies. Researchers idenfity convenience as a 'fundamental objective' related to online shopping (Schaupp & Belanger, 2005). This is relevant to 72% of online shoppers' claim that they would rather surf online than go to retail store to attain information about a product (Lokken et al., 2003). According to a study, 72% of online shoppers chose convenience over privacy (Bhatnagar, Misra, & Rao, 2000). In addition to ease of finding products online and shopping time reduction, consumers can shop without time limitation with 24-hr access at their convenience because the World Wide Web never closees. Lokken mentions 24-hr access as a beneficial characteristic of online shopping (Lokken et al., 2003). Also, consumers can exchange information online through chatting and discussion forums to help them make wise consumer decisions.
No need for vendors and no pressure to buy
Online shopping benefits both the society as a whole and individuals. The society can save human resources when consumers help themselves by browsing freely online instead of asking for assistance from vendors. In addition, consumers are freed from the pressure to buy from the vendors and can spend more time to make wise purchase decisions. But it is imorpant that Web sites have good product descriptions because it is one of the significant condition that satisfy consumers (Limayem, M., Khalifa, M., & Frini, A., 2000).
"Infinite shelfspace" available
Consumers desire a variety of products because they look for the right product that will fully satisfy them. There is infinite variety of products available online because online shopping allows consumers to browse through products that are made all around the world without geographical boundaries.
Able to compare product price and features
With the online tools that enable product comparison, consumers can compare product prices and features to make a better decision with less effort. More details are included in solutions section.
Disadvantages
Enjoyment of retail shopping lost
Many enjoy shopping with others and it is often a good way to make social connections. When shopping independently online, the enjoyment is lost.
Privacy and security issues
Privacy is the number one reason that non-online shoppers do not shop online. Almost 95% of Web users have declined to provide personal information to Web sites at one time or another when asked (Hoffman, Novak, & Peralta, 1999). Another recent study has found that privacy was the top concern of customers while security ranked bottom (Schaupp & Belanger, 2005). This proves that many do not trust the privay of the Internet and are concerned with their credit card fauds, unwanted solicitation, and use of their information for other purposes. Security of Web sites is not the top concern because many shop on Web sites that they trust so that other factors appear to be more important than security.
Access to the Internet and computer necessary
Because one needs money to buy a computer and to have internet connection, online shopping seems to be limited people of reasonable amount of income. Also, since it is harder to learn computer at an older age, the elderly people tend shop at traditional retail stores.
Product category risk
Product category risk is related to functional products such as apparel, perfume, and electronics, that have functions that cannot fully be expeirenced online. Online shopper are worried that the products will not be what they have expected by viewing online. This is a clear disadvantage of onlins shopping because it shows that "[t]he likelihood of purchasing on the Internet decreases with increases in product risk" (Bhatnagar, Misra, & Rao, 20000, p. 100). Apparels in particular had negative rating in online shopping because of it is difficult to feel and see the texture of color online that is incomparable to going to a retail store, even with magnifying tools online. Also, one cannot try on a clothing before buying it online, so it would be very inconvenient if the size did not fit the person and he/she had to return it.
Too many choices
Although having access to a very large number of products is highly desirable, consumers have limited cognitive resources and may simply be unable to process the potentially vast amounts of information about these alternatives (Haubl & Trifts, 2000). Online stores need to provide the variety in an organized way that will facilitate shopping online.
Solutions
Enjoyment of retail shopping lost - Online shopping can be fun
A study has found that many people find enjoyment and freedom through shopping online and like to browse through even if they do not have a goal-oriented shopping item on mind (Wolfinbarger). One such factor is user-friendly interface that make shopping enjoyable and visually pleasant. To solve the problem of the lost social interactivity, consumers can engage in other meaningful activiteis such as partying, dining, sports activities, etc. Even though the enjoyment attained from online shopping is uncomparable to the one by social interactions, some of it can be compensated by the enjoyment of shopping online and participating in other activities.
Privacy and security issues - Third-party seal
This is a very important issue because studies have found that "consumers who perceive fewer risks or concerns toward online shopping are expected to maker more online purchases than more risk-laden consumers (Miyazaki & Fernandez, 2001, p. 31). Although it is possible to invade one's privacy online, no significant amount of statistical results relating to the victims who have been invaded, has been found. Many are simply concerned and mistrust online stores. What online stores need is the mechanism that signals security of financial transactions on the Web. One possible solution is to require web site makers to provide a third-party seal approval that signal privacy and security on their web sites. Thus when consumers see the seal, they can trust the Web site and not worry about invasion of their privacy. Moreover, all companies will desire to keep frauds away in order to build company reputation and to survive in the competitive online market. Once they build consumer trust, online shoppers will not be discouraged to shop on their Web sites.
Access to the Internet and computer necessary - growing use of computers
In 2003, US Census Bureau has found that 70 million households, or 62% of US population has one or more computer, up from 56% in 2001, which is 62 million households, and 55% households of the nation has Internet access, up from 50% in 2001 ("Home Computers and Internet Use in the United States," 2003). 39% of those who do not have internet access, said that they either do not need it or are not intereseted. Also, another study has found that income and shopping experience had no significant relationship (Lokken et al., 2003). However, more higher income households tend to have Internet access, thus making Internet more affortable is a good idea to make onlins shopping available to more people. Product category risk - 3D technology Apparel online shopping has a lot of room for improvement.
Although it is not yet widely used, many online shop creaters are developing 3D technologies to use for online shopping. Companies such as E-Tailor, is developing customized fitting room for consumers to build their own body online that will allow them to try on as many clothings as possible. A university in Switzerland is developing a more powerful try-on application that will allow their customers to apply multiple layers of clothes. To avoid the slow downloading time of 3D graphics, they are moving the cloth and skin animaiton to the client side, using program such as ActiveX that is downloaded automatically at the first access tot he Web page (Cordier, Seo, & Magnenat-Thalmannm, 2003).
Simlarly, E-Tailor is designing a program that will allow animation of scanned customer bodies in the virtual fitting room (Kartsounis, Magnenat-Thalmann, & Rodrian). Moreover, in the United States, 3D body scanning system is being developed for use in the apparel industry that can possibly be used for online shopping (Istook & Hwang, 2000).
Too many choices - Interactive decision aids
Online shoppers are looking for useful functions on Web sites in addition to ease of use (Lim, 2002). More specifically, they desire to compare available products and their prices from a variety of different online stores (Limayem, Khalifa, & Frini, 2000, p. 428). By providing decision aids that help decision making, Web sites can attract more online shoppers. Many choices can be confusing, but with interactive toolkits such as recommendation agent (RA) that allows consumers to view a useful set of products out of the infinite list on the Web, and comparison matrix (CM) that allows in-depth comparisons among selected items . These interactive decision aids allow consumers to make "better decision with less effort" (Haubl & Trifts, 2000). Especially CM, already used by many web sites, allows viewers to compare different prices of one product offered by different vendors on the Internet. Thus, the toolkit allows consumers to receive the best deal possible. Although these tools are already provided by many Web sites, they can be improved by adding more features that will provide more details of products. The tool is also beneficial to the society because they keep the market prices competitive so that no one vendor can charge significantly more than others.
Additional online facilitating conditions
Transaction efficiency (such as delivery speed and providing tracking number) is also a significant condition that will satisfy consumers (Limayem, Khalifa, & Frini, 2000). Consumers expect to receive the products with high speed, and want to be able to track their purchased item to avoid any frauds while shipping.
Conclusion
Although there are numerous advantages of shopping online, to the society as well as individuals, such as 24-hr access and absence of vendors, some negative concerns of online shopping can be reduced by efforts of Web makers. In order to attract more online customers, Web vendors need to gain trust from consumers by signaling privacy and security of their sites, such as by using third-party seal approval, and must allow consumers to use interactive tools such as 3D technology, RA and CM that will faciliate users in making their purchase decisions. Although these features will gather more consumers online, I agree with Lokken's study that shows, "traditional retail shopping will not be reduced or replaced by online shopping in the future" (Lokken et al., 2003). In addition to retail shops, thoughtful improvements of Web sites with consideration on consumers' persepective, online shopping will gain respect and trust by consumers and will be much more widely used than today to benefit both the society and individuals. Eventully, almost all consumers will adapt to the online shopping technology and will be able to enjoy the convenient, innovative way of shopping.
No need for vendors and no pressure to buy
Online shopping benefits both the society as a whole and individuals. The society can save human resources when consumers help themselves by browsing freely online instead of asking for assistance from vendors. In addition, consumers are freed from the pressure to buy from the vendors and can spend more time to make wise purchase decisions. But it is imorpant that Web sites have good product descriptions because it is one of the significant condition that satisfy consumers (Limayem, M., Khalifa, M., & Frini, A., 2000).
"Infinite shelfspace" available
Consumers desire a variety of products because they look for the right product that will fully satisfy them. There is infinite variety of products available online because online shopping allows consumers to browse through products that are made all around the world without geographical boundaries.
Able to compare product price and features
With the online tools that enable product comparison, consumers can compare product prices and features to make a better decision with less effort. More details are included in solutions section.
Disadvantages
Enjoyment of retail shopping lost
Many enjoy shopping with others and it is often a good way to make social connections. When shopping independently online, the enjoyment is lost.
Privacy and security issues
Privacy is the number one reason that non-online shoppers do not shop online. Almost 95% of Web users have declined to provide personal information to Web sites at one time or another when asked (Hoffman, Novak, & Peralta, 1999). Another recent study has found that privacy was the top concern of customers while security ranked bottom (Schaupp & Belanger, 2005). This proves that many do not trust the privay of the Internet and are concerned with their credit card fauds, unwanted solicitation, and use of their information for other purposes. Security of Web sites is not the top concern because many shop on Web sites that they trust so that other factors appear to be more important than security.
Access to the Internet and computer necessary
Because one needs money to buy a computer and to have internet connection, online shopping seems to be limited people of reasonable amount of income. Also, since it is harder to learn computer at an older age, the elderly people tend shop at traditional retail stores.
Product category risk
Product category risk is related to functional products such as apparel, perfume, and electronics, that have functions that cannot fully be expeirenced online. Online shopper are worried that the products will not be what they have expected by viewing online. This is a clear disadvantage of onlins shopping because it shows that "[t]he likelihood of purchasing on the Internet decreases with increases in product risk" (Bhatnagar, Misra, & Rao, 20000, p. 100). Apparels in particular had negative rating in online shopping because of it is difficult to feel and see the texture of color online that is incomparable to going to a retail store, even with magnifying tools online. Also, one cannot try on a clothing before buying it online, so it would be very inconvenient if the size did not fit the person and he/she had to return it.
Too many choices
Although having access to a very large number of products is highly desirable, consumers have limited cognitive resources and may simply be unable to process the potentially vast amounts of information about these alternatives (Haubl & Trifts, 2000). Online stores need to provide the variety in an organized way that will facilitate shopping online.
Solutions
Enjoyment of retail shopping lost - Online shopping can be fun
A study has found that many people find enjoyment and freedom through shopping online and like to browse through even if they do not have a goal-oriented shopping item on mind (Wolfinbarger). One such factor is user-friendly interface that make shopping enjoyable and visually pleasant. To solve the problem of the lost social interactivity, consumers can engage in other meaningful activiteis such as partying, dining, sports activities, etc. Even though the enjoyment attained from online shopping is uncomparable to the one by social interactions, some of it can be compensated by the enjoyment of shopping online and participating in other activities.
Privacy and security issues - Third-party seal
This is a very important issue because studies have found that "consumers who perceive fewer risks or concerns toward online shopping are expected to maker more online purchases than more risk-laden consumers (Miyazaki & Fernandez, 2001, p. 31). Although it is possible to invade one's privacy online, no significant amount of statistical results relating to the victims who have been invaded, has been found. Many are simply concerned and mistrust online stores. What online stores need is the mechanism that signals security of financial transactions on the Web. One possible solution is to require web site makers to provide a third-party seal approval that signal privacy and security on their web sites. Thus when consumers see the seal, they can trust the Web site and not worry about invasion of their privacy. Moreover, all companies will desire to keep frauds away in order to build company reputation and to survive in the competitive online market. Once they build consumer trust, online shoppers will not be discouraged to shop on their Web sites.
Access to the Internet and computer necessary - growing use of computers
In 2003, US Census Bureau has found that 70 million households, or 62% of US population has one or more computer, up from 56% in 2001, which is 62 million households, and 55% households of the nation has Internet access, up from 50% in 2001 ("Home Computers and Internet Use in the United States," 2003). 39% of those who do not have internet access, said that they either do not need it or are not intereseted. Also, another study has found that income and shopping experience had no significant relationship (Lokken et al., 2003). However, more higher income households tend to have Internet access, thus making Internet more affortable is a good idea to make onlins shopping available to more people. Product category risk - 3D technology Apparel online shopping has a lot of room for improvement.
Although it is not yet widely used, many online shop creaters are developing 3D technologies to use for online shopping. Companies such as E-Tailor, is developing customized fitting room for consumers to build their own body online that will allow them to try on as many clothings as possible. A university in Switzerland is developing a more powerful try-on application that will allow their customers to apply multiple layers of clothes. To avoid the slow downloading time of 3D graphics, they are moving the cloth and skin animaiton to the client side, using program such as ActiveX that is downloaded automatically at the first access tot he Web page (Cordier, Seo, & Magnenat-Thalmannm, 2003).
Simlarly, E-Tailor is designing a program that will allow animation of scanned customer bodies in the virtual fitting room (Kartsounis, Magnenat-Thalmann, & Rodrian). Moreover, in the United States, 3D body scanning system is being developed for use in the apparel industry that can possibly be used for online shopping (Istook & Hwang, 2000).
Too many choices - Interactive decision aids
Online shoppers are looking for useful functions on Web sites in addition to ease of use (Lim, 2002). More specifically, they desire to compare available products and their prices from a variety of different online stores (Limayem, Khalifa, & Frini, 2000, p. 428). By providing decision aids that help decision making, Web sites can attract more online shoppers. Many choices can be confusing, but with interactive toolkits such as recommendation agent (RA) that allows consumers to view a useful set of products out of the infinite list on the Web, and comparison matrix (CM) that allows in-depth comparisons among selected items . These interactive decision aids allow consumers to make "better decision with less effort" (Haubl & Trifts, 2000). Especially CM, already used by many web sites, allows viewers to compare different prices of one product offered by different vendors on the Internet. Thus, the toolkit allows consumers to receive the best deal possible. Although these tools are already provided by many Web sites, they can be improved by adding more features that will provide more details of products. The tool is also beneficial to the society because they keep the market prices competitive so that no one vendor can charge significantly more than others.
Additional online facilitating conditions
Transaction efficiency (such as delivery speed and providing tracking number) is also a significant condition that will satisfy consumers (Limayem, Khalifa, & Frini, 2000). Consumers expect to receive the products with high speed, and want to be able to track their purchased item to avoid any frauds while shipping.
Conclusion
Although there are numerous advantages of shopping online, to the society as well as individuals, such as 24-hr access and absence of vendors, some negative concerns of online shopping can be reduced by efforts of Web makers. In order to attract more online customers, Web vendors need to gain trust from consumers by signaling privacy and security of their sites, such as by using third-party seal approval, and must allow consumers to use interactive tools such as 3D technology, RA and CM that will faciliate users in making their purchase decisions. Although these features will gather more consumers online, I agree with Lokken's study that shows, "traditional retail shopping will not be reduced or replaced by online shopping in the future" (Lokken et al., 2003). In addition to retail shops, thoughtful improvements of Web sites with consideration on consumers' persepective, online shopping will gain respect and trust by consumers and will be much more widely used than today to benefit both the society and individuals. Eventully, almost all consumers will adapt to the online shopping technology and will be able to enjoy the convenient, innovative way of shopping.
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