Understanding & Communicating With
The Perceived Risk of E-Shopping
• Economic Risk – The probability of making poor purchase decisions.
• Social risk- the possibility of incurring societal disapproval for engaging in shopping
using a particular medium.
• Performance risk – the chance of product / services performing less than expected.
• Personal risk- the potential for theft & abuse of credit card information.
• Privacy risk- the danger of compromising personal information.
• More willing to buy without handling items & to like shopping but not crowds .
• In greater need of convenience & product assortment .
• More price conscious & seeking a price advantage.
• Infrequent shoppers who make unplanned purchase.
Disadvantages of E-Shopping for Consumers
• Credit card & security worries .
• Lack of personal & social interaction .
• Can’t see or feel the merchandise .
• Don’t know how
• Can’t be in to receive delivery.
• Premium charge for delivery .
• Difficulties with returning goods for refund .
Advantages of E-Shopping for consumers
• Cost Effective
• Save Times
• Fits in with other activities
• Breadth & Depth of products
• Easy search of many alternatives
• Personalization of presentation & merchandise .
• Prices favorable .
The Principal benefits expected by consumers from e-shopping
Faster-Direct ordering processFaster-Direct ordering process
Quicker to useQuicker to use
Efficient search facilityEfficient search facility
Web has most up to date informationWeb has most up to date information
Can do at own pace anywhere with webCan do at own pace anywhere with web
Order accuracyOrder accuracy
Easier to compare products & pricesEasier to compare products & prices
Able to seek more informationAble to seek more information
Saves timeSaves time
Environment friendlyEnvironment friendly
Available to place orders 24 hours a dayAvailable to place orders 24 hours a day
Ease of useEase of use
Web-only specialsWeb-only specials
Ability to track account details or order progressAbility to track account details or order progress
Overall convenienceOverall convenience
All products in range are shown in one placeAll products in range are shown in one place
Motives for E-Shopping
• Ease of use
• Knowledge & ability to make a purchase
• Influence of friends & family
Enjoyment & E-Shopping
Enjoyment motives For e-shopping
• Not boring
• Fun for its own sake
Enjoyment & social features of e-retailing sites
• Chat rooms
• product reviews
• Suggestion boxes
• Personalization of offers
Female Shopping Style-The gatherer
• Ritual of seeking & comparing
• Imagining & envisioning the merchandise in use
• Trying up the pros & cons
• Taking pride in ability as shoppers
• The total shopping process is a leisure activity
• Women like to spend longer time than men do
• Women favour site design for women –eg. i village (www.ivillage.co.uk)
Male shopping styles – the hunter
• Men are incisive , decisive & determined shoppers
• Men’s excitement with shopping is at the moment of ‘kill’ (purchase)
• Men try to complete the shopping activity in the shortest possible time .
• Men’s lack of patience means they often miss the best buy
• Male e-shoppers are heavier internet users & more likely to shop via
mobile devices & PDAs
Components of E-Retail Quality
• Accurate display & description of a product so thaT what customers receive is
what they thought they ordered.
• Delivery of the right product with in the time frame promised.
Web site design: all elements of the consumer’s experience at the website:
• Information Search
• Order Processing
• Product Selection
Customer service: Reactive , helpful & willing service that responds to customer
•Securityof credit card payments