An analysis of online consumer behaviour

The main purpose of this research is to analyse online consumer behaviour in a systematic way. What factors affect online shopper while making the decision to buy goods and services from internet, to buy more items and give information about the product from website. Online shopping is the process of buying goods and services through internet. Since the development of World Wide Web, retailers sought to sell their goods and services through internet. Shoppers can visit web site and shop just sitting in form of computer. Consumer can buy anything from online such as books, household¿½s product, toys, hardware and software etc.

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Moreover, in just few decade the internet has become more popular to Adult and young shopper because the internet offers significant Advantages. Ability of the internet contains wide range of collecting information, supplying a service or purchasing a product. It offers you to Access to products and services which are not handy in local market. Online shopping is described as a computer activity performed by a consumer via a computer based interface, where consumer¿½s computer is connected to retailer¿½s digital storefront through a network (Haubl & Trifts, 2000). Online shopping allows for choose options beyond the traditional way that may be more time consuming. It can help you to search about product in details and make comparison of prices and characteristic before you decide to buy a product.

An online business must have their different identity from their competitors so that it can sustain in business market among various online websites. Consumer satisfaction is vital factor for the online business to remain competitive. Steady customers, besides providing steady revenue, are necessary as it helps businesses obtain more customers through the act of referral (Kumar 2001). Online shopping is described as a computer activity performed by a consumer via a computer based interface, where consumer¿½s computer is connected to retailer¿½s digital storefront through a network (Haubl & Trifts, 2000).

3. Organization background

Amazon.com was the first online bookstore and one of the largest bookstore and online store in global market. Founded in 1994 by Jeff Bozos, in 2004 it was in number one position in online services. Now it has 64 million consumers in more than 150 countries, 900,000 programmers linking with Amazon. Amazon sells directly wide range of product, books, music videos, mp3 DVDs. Clothes and kitchen items electronic goods and others. Even though company has highs and lows, Amazon able to manage the problems and sustain in competitive market. The company also used few strategies to leave behind their competitors like EBay. (Brynjolfsson & Urban 2001).

Moreover, improving of the company management, training to its employees and applying the advance technologies make more effective to the position of amazon.com.

4. Rationale:

This research proposal is determined to discover about the proposed topic due to my experience in online shopping at amazon.com.

There are some reasons why shopping at Amazon.com is better than visiting high street shops. The web is open 24/7/365 we can find anything on it.

5. Research objective

The main intension of this proposal is to conduct an experimental research on the consumer attitudes and behaviours for online shopping. It also carries out primary and secondary research and re evaluate interconnection literatures on consumer behaviour towards online shopping. Online shopping primarily change the way shoppers buy goods and services. What factors affect online consumer¿½s behaviour? The main objective of this study is to analyze online consumer behaviour

The focus of this research project address following objectives

1. To identify key factors influencing online consumer behaviour.

2. save time and money and evaluate prices from website to website

3. Online retailers sell the product at a less price due to fewer operation cost.

4. To explore the success of Amazon.

5. To identify how competitors compete with Amazon.

6. To identify the competitors

1. Direct Competitors

2. Indirect Competitors

7. To identify how competitors compete with Amazon.

6. Research questions

1. Online shopping is good or bad?

2. What are the difference between traditional shopping and online shopping?

3. Why do consumers and businesses use the internet when they buy or sell the product?

4. How well do consumers know about their rights and businesses know their responsibilities, when they use internet as a retail channel?

5. What problems do shoppers and business encounter when they buy or sell online? And how well they resolve it?

7. Literature review

8. Mythology

8.1 Research design and design adopted

The intention of this proposed is exploratory pretty than explanatory. This research will assume grounded hypothesis developed by Glaser and strauss. According to Glaser and struss , research is mainly the confirmation of theory or the growth of the theory through logical reasoning slightly than from experimental data. (Glaser and strauss, 1967). Grounded theory mainly focuses on systematic qualitative process for creating a theory that explicates concepts, procedure, action or interaction about the topic. According to Kotler the purpose of exploratory research is to collect preliminary data that will facilitate describe and suggest hypotheses. (Kotler et al 2006).

8.2 Data collection methods

Data collection methods allocate to systematically gather information about the subject. Data can be collected following ways.

8.2 a) Sampling methods

Sampling methods are classified in two types, probability and non probability. The shoppers of Amazon are taken as a population. The population of Amazon is too large to attempt the survey of all its members. In non probability sampling method a small number of groups represent the population. So in this research non probability sample is suitable.

7.2 (b) size of the sample

A subset of population called size of sample. Particularly for the purpose of making forecast based on numerical assumption.

8.3 (c) sampling techniques

A sample is fixed piece of a statistical population whose properties are calculated to achieve information about the entire. (Webster, 1958). The sampling technique is a vital factor of the overall sampling strategy. Sampling techniques facilitate to researcher to obtain most valuable data for further studies.

Participant observation

Participant observation is most important qualitative data collection method, which help researchers to know about study of population. Researcher achieves this by alone and participating observation to shifting degrees in the study of community¿½s every day activities because observation always conducts in society. This is particularly suitable for examining studies; expressive studies and studies intended to create theoretical interpretation. Finding of participant observational research is definitely correct for essentially examining theories ( Jorgensen, 1989). ¿½Participant observation enables to share their experience by not merely observing what is happening but also felling it¿½ (Gill and Johnson,1997). The research techniques aimed at observing factors that affect consumers buying decision; consumers interacting obviously with their surrounding including product and services.

methodology

Interviews

Interview is one of the common methods of data collection in qualitative research. A semi structure interview method will be appropriate to know consumer behaviour towards online shopping. This method allow to interviewee to talk about their opinions on the particular subject. Researcher can receive and give information related to the topic. Semi structure interview present topic and question to the interviewee however, it is planned to explore the interviewee¿½s opinions, ideas. It gives choices to interviewee so that researcher can go depth about related topic. The centre of attention of the interview is firm by the researcher and researcher is concerned in exploring the reaction of consumer thoughts towards internet shopping.

Data analysis

Data analysis is procedure of organized raw data that valuable information can dig up. This research proposal applies the mixture of qualitative and quantitative data analysis approach. Collected data from observation and interviews will be analysed by process from grounded theory approach; axial coding, open coding and selective coding (strauss and corbin, 1998). ……….

Resources requirements

The Literature review attained mostly from library facilities and learning support services. primary and secondary data are congregate from various sources such as books, journals, reports and website……

11. Timescale of work

Work done Feb 2010 Mar 2010 Apr 2010

Work beginning 1 2 23 27 29 02 09 13 16 30 06 13 15 19 22

Finalise the topic x x

Reading whole topic x x

Interpretation on literature x

Opinion on proposal x x x

Starting Righting Proposal x x x

Survey of CCD in internet x x x x

Check by lecturer x x x x

Collect data x x x x x x

Analysing data x x x x x

Completed reaming topics x x x

Re check by lecturer x

Final reviews of proposal x x

Ready for submission on trinity x

http://www.mba-tutorials.com/marketing/248-amazon-swot-analysis.html

CONCLUSION

The proposed of this research proposal is conducting a thorough analysis of online consumer behaviour and factors which are most essential for online consumer in various aspects. Price is the most important factor that effect consumers buying decision.

Recommendation

This study provides some factors which are effect online consumer behaviour. It also suggest that to attract and retain consumer; online businesses have to adopt cost saving strategy which helps to increase buyers demand.

Ref.

Brynjolfsson, E & Urban, GL (eds.) 2001, Strategies for E-

business success, Jossey-Bass, San Francisco.

http://www.mba-tutorials.com/marketing/248-amazon-swot-analysis.html

Haubl, G. & Trifts, V., “Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids”, Marketin Science, Vol. 19(1), 2000, 4.

Kotler et al. 2006, p. 122, Principles of Marketing , 3rd edn, Frenchs Fores, Pine Forge Press http://en. /Exploratory research.com

Strauss, A and Corbin, J (1994) Grounded Theory Methodology: an overview; In

Denzin N.K and Lincoln Y.S.Handbook of Qualitative Research. London. Sage.

Webster, M. (1985). Webster`s nith new collegiate dictionary. Meriam – Webster Inc.

Jorgensen, L. 1989 participant observation: a methodology for human studies.