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    The Rebirth of Online Shopping: A Quantitative Research of Online Shopping and Its Effects

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    Ken Mateyow
    Online shopping has grown significantly worldwide. It provides many conveniences like shopping anytime from anywhere. However, it also poses risks like fraud and lack of ability to inspect products before purchase. Key factors that influence online shopping include product quality, price, and service quality. While online shopping offers benefits such as extensive information, deals, and variety, disadvantages include security concerns, lack of full cost disclosure upfront, and inability to physically examine items.

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    The Rebirth of Online Shopping: A Quantitative Research of Online Shopping and Its Effects

    Uploaded by

    Ken Mateyow
    89 views5 pages
    Online shopping has grown significantly worldwide. It provides many conveniences like shopping anytime from anywhere. However, it also poses risks like fraud and lack of ability to inspect products before purchase. Key factors that influence online shopping include product quality, price, and service quality. While online shopping offers benefits such as extensive information, deals, and variety, disadvantages include security concerns, lack of full cost disclosure upfront, and inability to physically examine items.

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    Online shopping has grown significantly worldwide. It provides many conveniences like shopping anytime from anywhere. However, it also poses risks like fraud and lack of ability to inspect products before purchase. Key factors that influence online shopping include product quality, price, and service quality. While online shopping offers benefits such as extensive information, deals, and variety, disadvantages include security concerns, lack of full cost disclosure upfront, and inability to physically examine items.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    89 views5 pages

    The Rebirth of Online Shopping: A Quantitative Research of Online Shopping and Its Effects

    Uploaded by

    Ken Mateyow
    Online shopping has grown significantly worldwide. It provides many conveniences like shopping anytime from anywhere. However, it also poses risks like fraud and lack of ability to inspect products before purchase. Key factors that influence online shopping include product quality, price, and service quality. While online shopping offers benefits such as extensive information, deals, and variety, disadvantages include security concerns, lack of full cost disclosure upfront, and inability to physically examine items.

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    The Rebirth of Online Shopping: A Quantitative Research of

    Online Shopping and its Effects

    I. Introduction

    Online shopping has been so diversified, it is widely known and used by


    consumers to buy products online, and businesses to promote, advertise and market their
    products and services. Websites and Internet brings new place and provide new ways for
    the consumers and sellers to trade, it makes life simple and innovative.
    In the 21st century, e-commerce has increased significantly throughout the world
    and a lot of online shop have led to popularity and growth such as in international, there
    is Amazon, while in Philippines, there are Lazada and Shoppe are leading the market. But
    before the beginning of those online shopping websites and apps, there is only one who is
    well known in terms of online shopping. It is the olx.com.ph formerly known as
    sulit.com.ph with its famous tagline “hanap, usap, deal”.
    Online Shopping have a widespread attention that can attract many people. It is
    now in the line wherein all people can buy or sell any products through online. They say
    that this is a quicker solution and easy to do anytime and anywhere. Online shopping or
    e-shopping is a form of electronic commerce which allows consumers to directly buy
    goods or services from a seller over the Internet using a web browser. Alternative names
    are e-webstore, e-shop, e-store, Internet shop, web-shop, webstore, online store, online
    storefront and virtual store. Mobile commerce (or m-commerce) describes purchasing
    from an online retailer's mobile optimized online site or app. Online shopping is a form
    of electronic commerce which allows consumers to directly buy goods or services from a
    seller over the Internet using a web browser. Consumers find a product of interest by
    visiting the website of the retailer directly or by searching among alternative vendors
    using a shopping search engine, which displays the same product's availability and
    pricing at different e-retailers. As of 2020, customers can shop online using a range of
    different computers and devices, including desktop computers, laptops, tablet computers
    and smartphones
    Nowadays, online shopping has become the norm and consumers are adopting it
    as it has many advantages. On consumers’ perspective, online shopping provides low
    and transparent prices, comprehensive assortment of goods and services and a much more
    convenient shopping alternative that has eliminated such traditional shopping,
    inconveniences of squeezing through crowds, stuck in long queue at cashier counter,
    battling for parking spaces at a busy mall.
    Online shopping as defined by Master Card Worldwide Insights (2008) is the
    process of purchasing goods and services from merchants who sell over the internet.
    Generally, it is also known as internet buying, electronic shopping, online purchasing or
    internet shopping. Kim (2004) further defined internet shopping as examining, searching
    for, browsing for or looking at a product to get more information with the possible
    intention of purchase on the Internet. By looking at other perspective, Chiu et al (2009)
    considered online shopping as an exchange of time, effort and money for receiving
    products or services.
    The First is Product Quality. In general, quality can be defined as a measurement
    of goods or services offered by buyers or companies. According to Kotler and Amstrong
    (2008:283), product quality is the ability of a product in performing its function such as
    durability, reliability, accuracy, easiness, and the other attributes. If a product can
    perform its function well, then it can be said that product has a good quality. A good
    quality product will make consumers tend to do repurchasing. But if the quality of a
    product does not suitable with the 2 expectations, then the consumer will move their
    purchase intention to other products. Quality of a product or service can be valued
    differently depends on each consumer's perceptions. Therefore, companies are trying to
    focus on quality products and compare them with the products offered by competitors.
    The Second is Price is the amount of money a business demands in exchange for
    its offerings (Elliott, 2012:23). Pricing is a complex marketing decision that must take
    account of many factors such as production, communication, and distribution cost,
    required profitability, competitor's prices, and many more. Price is the defining factor that
    influence the consumer purchasing decisions. Perception about price which is often
    comes to consumer's mind is a high price reflects a high quality, and so the vice versa.
    Also, consumers often assume that there is a positive relationship between price and the
    quality of a product, so consumers will compare one product with another product with
    that comparison. And In order to keep exist in the global market.
    The Third is Service Quality Electronic service, or e-service, is defined as the
    provision of service over electronic networks (Rust and Kannan, 2002). E-service has
    attributes such as responsiveness to customer enquiries, security, fulfilment processes,
    customization and personalization, and interactivity (Ba and Johansson, 2008). E-service
    quality can be assessed as the overall consumer judgment and assessment of e-service
    delivery in the online marketplace (Santos, 2003). Researchers have claimed that, in
    comparison to offline service, e-service has the capability of serving consumers‟ needs
    more efficiently.

    ADVANTAGES
    1. Convenience
    Online stores are usually available 24 hours a day, and many consumers
    have Internet access both at work and at home. Other establishments such as
    internet cafes and schools provide internet access as well. In contrast, visiting a
    conventional retail store requires travel and must take place during business
    hours.
    2. Information and reviews
    Online stores must describe products for sale with text, photos, and
    multimedia files, whereas in a physical retail store, the actual product and the
    manufacturer's packaging will be available for direct inspection (which might
    involve a test drive, fitting, or other experimentation).
    Some online stores provide or link to supplemental product information,
    such as instructions, safety procedures, demonstrations, or manufacturer
    specifications. Some provide background information, advice, or how-to guides
    designed to help consumers decide which product to buy.
    3. Price and selection
    One advantage of shopping online is being able to quickly seek out deals
    for items or services provided by many different vendors (though some local
    search engines do exist to help consumers locate products for sale in nearby
    stores). Search engines, online price comparison services and discovery shopping
    engines can be used to look up sellers of a particular product or service.
    Other Advantages
     New Services
     Expanded reach
     It is always open
     Saves time
     No checkout lines
     More variety
     Electronic record or receipts

    DISADVANTAGES
    1. Fraud and security concerns
    Given the lack of ability to inspect merchandise before purchase,
    consumers are at higher risk of fraud than face-to-face transactions. Merchants
    also risk fraudulent purchases using stolen credit cards or fraudulent repudiation
    of the online purchase. However, merchants face less risk from physical theft by
    using a warehouse instead of a retail storefront.
    A few resources offer advice on how consumers can protect themselves
    when using online retailer services. These include:
    1. Sticking with known stores, or attempting to find independent consumer
    reviews of their experiences; also ensuring that there is comprehensive
    contact information on the website before using the service, and noting if
    the retailer has enrolled in industry oversight programs such as a trust
    mark or a trust seal.
    2. Before buying from a new company, evaluate the website by
    considering issues such as: the professionalism and user-friendliness of the
    site; whether or not the company lists a telephone number and/or street
    address along with e-contact information; whether a fair and reasonable
    refund and return policy is clearly stated; and whether there are hidden
    price inflators, such as excessive shipping and handling charges.
    3. Ensuring that the retailer has an acceptable privacy policy posted. For
    example, note if the retailer does not explicitly state that it will not share
    private information with others without consent.
    4. Ensuring that the vendor address is protected with SSL (see above)
    when entering credit card information. If it does the address on the credit
    card information entry screen will start with "HTTPS".
    5. Using strong passwords, without personal information. Another option
    is a "pass phrase”, which might be something along the lines: "I shop 4
    good a buy!!" These are difficult to hack, and provides a variety of upper,
    lower, and special characters and could be site specific and easy to
    remember.
    2. Lack of full cost disclosure
    The lack of full cost disclosure may also be problematic. While it may be
    easy to compare the base price of an item online, it may not be easy to see the
    total cost up front. Additional fees such as shipping are often not be visible until
    the final step in the checkout process. The problem is especially evident with
    cross-border purchases, where the cost indicated at the final checkout screen may
    not include additional fees that must be paid upon delivery such as duties and
    brokerage. Some services such as the Canadian based Wishabi attempts to include
    estimates of these additional cost,[30] but nevertheless, the lack of general full
    cost disclosure remains a concern.
    3. Privacy
    Privacy of personal information is a significant issue for some consumers.
    Many consumers wish to avoid spam and telemarketing which could result from
    supplying contact information to an online merchant. In response, many
    merchants promise to not use consumer information for these purposes
    Other Disadvantages
     Lack of shop assistance
     Products cannot be tried before purchase
     There may be shipping cost
     There may be delays
     There is no guarantee of delivery
     Shipping charges can be higher than the product cost
     Returns can be complicated

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