<ul><li>Online Shopping </li></ul><ul><li>By </li></ul><ul><li>Zhemin Wang </li></ul><ul><li>Zhiwei Yan </li></ul>
History & Background Information <ul><li>Online shopping is the process consumers go through to purchase products or servi...
<ul><li>In 1992 Charles Stack created the first online book store, Book Stacks Unlimited, two years before Jeff Bezos star...
Customers <ul><li>In recent years, online shopping has become popular, however, it still caters to the middle and upper cl...
Trends <ul><li>Books are one of the things bought most online.  </li></ul><ul><li>Clothes, shoes, and accessories are all ...
Market Share <ul><li>E-commerce product sales totaled $146.4 billion in the United States in 2006, representing about 6% o...
eBay <ul><li>An online auction and shopping website in which people and businesses buy and sell a broad variety of goods a...
Amazon <ul><li>Amazon.com, Inc. is an American-based multinational electronic commerce company. </li></ul><ul><li>It headq...
Advantages of online shopping <ul><li>1. Some products you don’t need to pay for tax, so they might at a lower price. </li...
Disadvantages of online shopping <ul><li>1. You can only know the products from description and from pictures. They might ...
Discuss the details of the survey instrument <ul><li>Target audience & Sampling plan: </li></ul><ul><li>We select 30 sampl...
<ul><li>Method of survey administration: </li></ul><ul><li>Give the survey paper to people personally. </li></ul><ul><li>S...
Survey of Online Shopping <ul><li>1. What is your gender? </li></ul><ul><li>A. Male  B. Female </li></ul><ul><li>2. What i...
<ul><li>6. What kinds of items do you prefer to buy online rather than in stores (choose all that are applicable)? </li></...
Data preparation <ul><li>Gender: 12 males, 18 females. </li></ul><ul><li>0 stands for female, 1 stands for male. </li></ul>
Data preparation <ul><li>Age: focus on 20 to 30 which is 67% </li></ul>
Data preparation <ul><li>Education: 73% respondents have bachelor degree. 6% respondents have high school diploma and 21% ...
Data preparation <ul><li>Computer skill: 93% respondents have average or better computer skills. Computer skill is not a b...
Data preparation <ul><li>Proportion of money spent on online shopping: 60% respondents spend less than 10% on online shopp...
Data preparation <ul><li>Online shopping trend: more people believe that shopping in store will still be the major way of ...
Data preparation <ul><li>Reasons of shopping online: top reasons for choosing online shopping are: time saving, cheaper pr...
Data preparation <ul><li>Tasks on computer: people do the following thing on internet : search information, check email, r...
Data preparation <ul><li>ITEMS: Items which are most likely to buy online are as following: electronic goods, books, cloth...
Data preparation <ul><li>Additional hypotheses: </li></ul><ul><ul><li>Female more likely buy clothes online than male.  </...
Hypothesis 1 <ul><li>Proportion of female buying clothes online is   1=0.333, male is   2=0.067. </li></ul><ul><li>NULL:...
Hypothesis 2 <ul><li>Proportion of money spent less 10% on online shopping is 0.6. </li></ul><ul><ul><li>NULL:   >=50%. P...
Hypothesis 3 <ul><li>Proportion which people believe that online shopping is the main way of shopping is 0.378. </li></ul>...
Regression analysis <ul><li>Define variables: Y=attitude; X1=gender, X2=age, X3=education, X4=PC skill. </li></ul><ul><li>...
Conclusion  <ul><li>Female more likely buy clothes online than male.  </li></ul><ul><li>People spend less money on online ...
Recommendations <ul><li>Reasonable advertisement distributions. </li></ul><ul><ul><li>Focus on search engine, email, news ...
Recommendations <ul><li>Research all potential merchants websites thoroughly. </li></ul><ul><li>Question the offers. </li>...
Suggestions <ul><li>Improving the study. </li></ul><ul><ul><li>More online survey respondents.  </li></ul></ul><ul><ul><li...
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Final Presentation

  1. 1. <ul><li>Online Shopping </li></ul><ul><li>By </li></ul><ul><li>Zhemin Wang </li></ul><ul><li>Zhiwei Yan </li></ul>
  2. 2. History & Background Information <ul><li>Online shopping is the process consumers go through to purchase products or services over the Internet. </li></ul><ul><li>The idea of online shopping predates the World Wide Web, for there are earlier experiments involving real-time transaction processing from a domestic television. </li></ul><ul><li>The first B2B was Thomson Holidays in 1981. </li></ul><ul><li>In 1990 Tim Berners-Lee created the first World Wide Web server and browser. </li></ul>
  3. 3. <ul><li>In 1992 Charles Stack created the first online book store, Book Stacks Unlimited, two years before Jeff Bezos started Amazon. </li></ul><ul><li>In 1994, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. </li></ul><ul><li>In 1995 Amazon expanded its online shopping, and in 1996 eBay appeared. </li></ul>
  4. 4. Customers <ul><li>In recent years, online shopping has become popular, however, it still caters to the middle and upper class. </li></ul><ul><li>In order to shop online, one must be able to have access to a computer and a bank account. </li></ul><ul><li>Shopping has evolved with the growth of technology. One must have the basic computer skills. </li></ul><ul><li>Online shopping widened the target audience to men and women of the middle class. By 2001, women were 52.8% of the online population. </li></ul>
  5. 5. Trends <ul><li>Books are one of the things bought most online. </li></ul><ul><li>Clothes, shoes, and accessories are all very popular things bought online. </li></ul><ul><li>Cosmetics, nutrition products, and groceries are increasingly being purchased online. </li></ul><ul><li>About one fourth of travelers buy their plane tickets online because it is a quick and easy way to compare airline travel and make a purchase. </li></ul><ul><li>Online shopping provides more freedom and control than shopping in a store. </li></ul>
  6. 6. Market Share <ul><li>E-commerce product sales totaled $146.4 billion in the United States in 2006, representing about 6% of retail product sales in the country. </li></ul><ul><li>For developing countries and low-income households in developed countries, adoption of e-commerce in place of or in addition to conventional methods is limited by a lack of affordable Internet access. </li></ul>
  7. 7. eBay <ul><li>An online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. </li></ul><ul><li>A majority of the sales take place through a set-time auction format. </li></ul><ul><li>It was founded on September 3, 1995. </li></ul><ul><li>Its headquarters in San Jose, California. </li></ul>
  8. 8. Amazon <ul><li>Amazon.com, Inc. is an American-based multinational electronic commerce company. </li></ul><ul><li>It headquartered in Seattle. </li></ul><ul><li>It is America's largest online retailer. </li></ul><ul><li>It started as an on-line bookstore but soon diversified to product lines of DVD, music CDs and computer software, electronics, apparel, furniture etc. </li></ul><ul><li>It also provides international shipping to certain countries for some of its products. </li></ul>
  9. 9. Advantages of online shopping <ul><li>1. Some products you don’t need to pay for tax, so they might at a lower price. </li></ul><ul><li>2. It’s time saving. You don’t need to spend transportation fee (gas) to buy stuff. </li></ul><ul><li>3. It’s easy to compare the price online. It’s more convenient to compare the price just on website than go to different stores. service. </li></ul><ul><li>4. It’s fast and convenient. There has delivery service for online shopping. Online stores are usually available 24 hours a day,365 days a year. </li></ul>
  10. 10. Disadvantages of online shopping <ul><li>1. You can only know the products from description and from pictures. They might not the exactly products as you thought. As for clothes and shoes, you aren’t sure whether they fit you well or not. </li></ul><ul><li>2. There might exist some security problems on online payment. Privacy of personal information is a significant issue for some consumers. </li></ul>
  11. 11. Discuss the details of the survey instrument <ul><li>Target audience & Sampling plan: </li></ul><ul><li>We select 30 samples. </li></ul><ul><li>We did the survey in some public places, such as Wilkes campus, Barnes & Noble bookstore and American Red Cross, Wyoming Chapter. </li></ul><ul><li>We try to give surveys to people of different age and education, in order to make our target audience presented the people from different generation, position and industry. </li></ul>
  12. 12. <ul><li>Method of survey administration: </li></ul><ul><li>Give the survey paper to people personally. </li></ul><ul><li>Summary of respondents: </li></ul><ul><li>We passed out 30 surveys and all the people are willing to respond to them. </li></ul>
  13. 13. Survey of Online Shopping <ul><li>1. What is your gender? </li></ul><ul><li>A. Male B. Female </li></ul><ul><li>2. What is your age? </li></ul><ul><li>A. under 20 B. 20-30 C. 30- 40 D. above 40 </li></ul><ul><li>3. What is your highest level of education? </li></ul><ul><li>A. did not graduate from high school B. high school diploma C. College degree </li></ul><ul><li>D. master degree E. doctoral degree </li></ul><ul><li>4. How would you evaluate your computer skills? </li></ul><ul><li>A. Expert B. Average C. Need Improvement </li></ul><ul><li>5. For what tasks do you use your computer (choose all that are applicable)? </li></ul><ul><li>A. Check email B. Search for information C. Read news D. Play games E. Shopping F. Chat </li></ul>
  14. 14. <ul><li>6. What kinds of items do you prefer to buy online rather than in stores (choose all that are applicable)? </li></ul><ul><li>A. Clothes B. Food C. Electronic goods D. Books E. Furniture </li></ul><ul><li>7. What proportion of money do you spend on online shopping? </li></ul><ul><li>A. Less than 10% B. 10% to 30% C. 30% to 50% D. Greater than 50% </li></ul><ul><li>8. Do you believe that online shopping will eventually replace shopping in stores and become the major way of shopping? </li></ul><ul><li>A. Yes B. Very Likely C. No idea D. Very Unlikely E. No </li></ul><ul><li>9. Why do you choose to shop online? </li></ul><ul><li>A. Cheaper price B. Goods are only Available Online C. Time Saving D. Delivery E. Other </li></ul>
  15. 15. Data preparation <ul><li>Gender: 12 males, 18 females. </li></ul><ul><li>0 stands for female, 1 stands for male. </li></ul>
  16. 16. Data preparation <ul><li>Age: focus on 20 to 30 which is 67% </li></ul>
  17. 17. Data preparation <ul><li>Education: 73% respondents have bachelor degree. 6% respondents have high school diploma and 21% respondents have master or higher degree. </li></ul>
  18. 18. Data preparation <ul><li>Computer skill: 93% respondents have average or better computer skills. Computer skill is not a barrier to shopping online. </li></ul>
  19. 19. Data preparation <ul><li>Proportion of money spent on online shopping: 60% respondents spend less than 10% on online shopping. 37% respondents spend 10% to 30% online shopping. People still take less money online shopping. </li></ul>
  20. 20. Data preparation <ul><li>Online shopping trend: more people believe that shopping in store will still be the major way of shopping compared with shopping online. </li></ul>
  21. 21. Data preparation <ul><li>Reasons of shopping online: top reasons for choosing online shopping are: time saving, cheaper price, delivery, good only available online. </li></ul>
  22. 22. Data preparation <ul><li>Tasks on computer: people do the following thing on internet : search information, check email, read news, shopping, chat and play games. </li></ul>
  23. 23. Data preparation <ul><li>ITEMS: Items which are most likely to buy online are as following: electronic goods, books, clothes, and furniture. </li></ul>
  24. 24. Data preparation <ul><li>Additional hypotheses: </li></ul><ul><ul><li>Female more likely buy clothes online than male. </li></ul></ul><ul><ul><li>People spend less money on online shopping. </li></ul></ul><ul><ul><li>People believe that online shopping will become the major way of shopping in future. </li></ul></ul>
  25. 25. Hypothesis 1 <ul><li>Proportion of female buying clothes online is  1=0.333, male is  2=0.067. </li></ul><ul><li>NULL:  1<=  2. Female less likely buy clothes online than male. </li></ul><ul><li>ALT:  1>  2. Female more likely buy clothes online than male. </li></ul><ul><li>Two sample proportion testing. </li></ul><ul><li>reject! </li></ul><ul><ul><li>P-value is 0.01<0.05 </li></ul></ul><ul><ul><li>test statistic (obs) 2.582> critical measure 1.960 </li></ul></ul><ul><ul><li>Conclusion: Female more likely buy clothes online than male. </li></ul></ul>
  26. 26. Hypothesis 2 <ul><li>Proportion of money spent less 10% on online shopping is 0.6. </li></ul><ul><ul><li>NULL:  >=50%. People spend less money on online shopping. </li></ul></ul><ul><ul><li>ALT:  <50%. People spend more money on online shopping. </li></ul></ul><ul><li>one sample proportion testing. </li></ul><ul><li>Accept! </li></ul><ul><ul><li>P-value is 0. 137>0.05 </li></ul></ul><ul><ul><li>test statistic (obs) 1.095< critical measure 1.645 </li></ul></ul><ul><ul><li>Conclusion: People spend less money on online shopping. </li></ul></ul>
  27. 27. Hypothesis 3 <ul><li>Proportion which people believe that online shopping is the main way of shopping is 0.378. </li></ul><ul><ul><li>NULL:  <=50%. Less people believe that online shopping will become the major way of shopping in future </li></ul></ul><ul><ul><li>ALT:  >50%. More people believe that online shopping will become the major way of shopping in future. </li></ul></ul><ul><ul><li>one sample proportion testing. </li></ul></ul><ul><ul><li>Accept! </li></ul></ul><ul><ul><li>P-value is 0. 072>0.05 </li></ul></ul><ul><ul><li>test statistic (obs) 1.416< critical measure 1.645 </li></ul></ul><ul><ul><li>Conclusion: Less people believe that online shopping will become the major way of shopping in future </li></ul></ul>
  28. 28. Regression analysis <ul><li>Define variables: Y=attitude; X1=gender, X2=age, X3=education, X4=PC skill. </li></ul><ul><li>The model is significant. </li></ul><ul><li>>0.05. </li></ul><ul><li>There is no significant relationship among them. </li></ul>
  29. 29. Conclusion <ul><li>Female more likely buy clothes online than male. </li></ul><ul><li>People spend less money on online shopping. </li></ul><ul><li>Less people believe that online shopping will become the major way of shopping in future. </li></ul><ul><li>Gender, age, education, PC skill don’t decide the attitude of online shopping in future. </li></ul><ul><li>People choose online because of time saving and cheaper price. </li></ul><ul><li>People prefer to buy electronic goods, clothes and books online. </li></ul><ul><li>Majority people spend less 30% money through online shopping. </li></ul>
  30. 30. Recommendations <ul><li>Reasonable advertisement distributions. </li></ul><ul><ul><li>Focus on search engine, email, news website. </li></ul></ul><ul><li>Searching, browsing and checking improvement. </li></ul><ul><li>Great deal to attract more customers. </li></ul><ul><li>Enlarge the distribution of online in clothes, electronic good and books. Food and furniture should not be considered at least in a short term. </li></ul><ul><li>Websites: dealnews.com, dealcatcher.com, dealunion.com, dealsea.com. </li></ul>
  31. 31. Recommendations <ul><li>Research all potential merchants websites thoroughly. </li></ul><ul><li>Question the offers. </li></ul><ul><li>Use a credit card. </li></ul><ul><li>Do not give out your Social Security number. </li></ul><ul><li>Be specific with your search engine. </li></ul><ul><li>Know what you are looking for. </li></ul><ul><li>Ctrl+Alt+P. </li></ul>
  32. 32. Suggestions <ul><li>Improving the study. </li></ul><ul><ul><li>More online survey respondents. </li></ul></ul><ul><ul><li>More respondent from store and more. </li></ul></ul><ul><ul><li>Questions should include more items. </li></ul></ul><ul><li>Future research </li></ul><ul><ul><li>Safety </li></ul></ul><ul><ul><li>Fake. </li></ul></ul><ul><ul><li>Elder people attitude. </li></ul></ul>

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