In one online store, 8 percent of the orders are placed by new customers. Let N be the number of orders placed in a day to reach the store's first new customer. Assume each order's customer status is independent. Find the probability that the first new customer places the 5th order of the day.

Online Shopper Behavior: Influences of Online Shopping

Decision

Chayapa Katawetawaraks

SCG Trading Services Co. Ltd

Cheng Lu Wang

University of New Haven

Abstract

Recent research has shown an interest in investigating consumer motivations that affect the

online shopping behavior. It is yet to understand what factors influence online shopping decision

process. The objective of this study is to provide an overview of online shopping decision

process by comparing the offline and online decision making and identifying the factors that

motivate online customers to decide or not to decide to buy online. It is found that marketing

communication process differs between offline and online consumer decision. Managerial

implications are developed for online stores to improve their website.

Keywords: Online shopping, online shopper behavior, online shopping decision

Introduction

The internet has played a significant role in our daily life in that people can talk through the

internet to one who is actually on the other side of the Earth, can send email around the clock,

can search information, can play game with others, and even can buy things online. Meanwhile,

Internet shopping has been widely accepted as a way of purchasing products and services It

has become a more popular means in the Internet world ((Bourlakis et al., 2008)). It also

provides consumer more information and choices to compare product and price, more choice,

convenience, easier to find anything online ((Butler and Peppard, 1998)). Online shopping

has been shown to provide more satisfaction to modern consumers seeking convenience and

speed ((Yu and Wu, 2007)). On the other hand, some consumers still feel uncomfortable to

buy online. Lack of trust, for instance, seems to be the major reason that impedes consumers

to buy online. Also, consumers may have a need to exam and feel the products and to meet

friends and get some more comments about the products before purchasing. Such factors may

have negative influence on consumer decision to shop online.

This study first provides a theoretical and conceptual background that illustrates the differences

between offline and online consumer behavior process. Then we identify some basic factors

that drive consumers to decide to buy or not to buy through online channel. Finally, we draw

managerial implications of how online sellers can use this knowledge to improve their online

stores to be more attractive and get more online shoppers.  

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Theoretical Background

Offline and Online Consumer Decision-maki

Step-by-step explanation:

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