Question

Consumer choices. How do consumers behave and how they maximize their utility? How do internet and e-commerce affect consumer’s choices of certain products, (you can use specific products, specific online businesses in Qatar and other countries etc.). You need to use a relevant model that explains this relationship and draw your conclusion based on key findings from existing research. You can use real online business examples from Qatar or another country of your choice to explain the impact of internet on consumer’s choices.

1) 5 pages (around 2500 words) To say the question we would like to answer, anything related to the topic.

2) Reflection: The last page (500 words) is a reflection of what you did in the paper and class (strengths) and (weaknesses) of your research topic and also what your other group members did exactly in all the presentations.

Answer 1

As the e-commerce definitions given by various sources differ significantly, it is important to adopt a clear and consistent definition of e-commerce.

• From a communication perspective, e-commerce is the delivery of goods, services, information, or payments over computer networks or other electronic means.
• From a service perspective, e-commerce is a tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery.
• From an online perspective, e-commerce provides capability of buying and selling products and information on the Internet and other online service.

For long time, consumers and marketer have had few sources of getting and disseminating information regarding products or services. The traditional resources of information such as television, radio, newspapers, guide books and word of mouth were the only sources of getting information and were offered limited insight. These resources are not only expensive (publishing and distribution) but also provide limited space besides limited experience. Due to these budgetary and space constraints, information about small business were not only extremely difficult to post but also to access. However, with the advent of internet, publishing and distribution of information became accessible and cheaper. Internet has improved the flow and quality of information by helping companies understand their customers better through free information sharing in real time. It has connected companies and customers in such a way that both parties are able to better communicate with each other through company websites (online review), blogs, social media etc. Therefore, companies can offer products and services according to customer needs.

With increase in Internet users company and customers relationship has transformed and communication has become transparent. Now online consumers no longer play a passive role but freely give their views about the products and services which could win a negative reputation for the company should the company fail to meet customer demands.

Region	Number of Users in Million
East Asia	1,000
Southern Asia	803
Southeast Asia	415
North America	346
South America	316
Eastern Europe	233
Western Europe	183
Western Asia	182
Western Africa	158
Eastern Africa	140
Southern Europe	135
Northern Africa	121
Central America	114
Northern Europe	100
Central Asia	36
Southern Africa	34
Oceania	29
Caribbean	23
Middle Africa	20

** Source: J. Clement published on 14-02-2020

Consumer’s attitude towards online shopping is also crucial dynamic of e-commerce studies. A recent report by Saaksjarvi and Pol (2007) explains that customer acquisition by email marketing is gaining momentum for the last four years. These change in consumer attitudes, they stated, is based on many benefits that e-commerce provides such as:

• Easy access to information regarding products and services
• Quality of information on products and services
• Convenience for customers
• Expanding choices for customers
• Creating new markets
• Development of interactive relationships with customers
• Improved customer services
• Development of organizational image
• Saving time
• Customization of products and services
• Reduction of operational cost
• Simplifying purchase process
• Active interaction with business partners
• Searching and founding new business partnerships.

E-Marketing Tools and Trends

In e-marketing it is extremely important to differentiate the product or services from the other competitors because internet readily provides means to compare different product online and show instant results. Organisations require skills for gathering and analyses of information extracted from online markets to make future strategies for organisations.

Ø Using Websites

Websites are the first step in offering products and services to the consumer and providing them with details of what the product does through audio and visual clips. This is where the organisations deliver their view of their products and their belief of how the product or service will help consumers. Websites are among the most effective and useful techniques in the tools and methods of e-Marketing

Ø Employee Email Marketing Method

E-Mail marketing method is same as sending Direct Mails in traditional marketing but without the hassle of designing, printing, and posting costs. The consumer content is gathered through their use of official websites and then related and relevant products and services are offered to them through sending e-mails of product details that can interest them. However, sending too many e-Mails are considered to be ‘spamming’ and is not appreciated by the customers.

Ø Online Advertisement

Online Advertisement is another avenue that companies utilize in the shape of e-Marketing medium. The advertisements are placed on ‘partner’ websites where the browsing consumers can view the offered products and services. These offers are made based on the ‘clicks’ that the user has made while browsing the partner website. Moreover, advertisements are placed by search engines such as Google and Yahoo based on the search string that the user provided

Ø Web Analytics

Web Analytics means to study the user impact of a given website used by companies employing e-Commerce or websites to measure specific details such as the users visiting their sites, number of users that visited it, and the referee website through which they came. It is necessary if there is a partnership with other sites that are paid on the pay-per-click method where each customer coming from their website and making a successful purchase will generate money for the referring website.

Consumer attitudes toward online shopping usually been determined by two factors; one is trust, and another is perceived benefits (Hoque, Ali, & Mahfuz, 2015). Therefore, trust and perceived benefits seem to be the critical conjectures of consumer behavior toward online shopping (Al-Debei, Akroush, & Ashouri, 2015; Hajli, 2014). Moreover, information quality, merchandise attribute, website design, transaction capability, payment, security/privacy, delivery, self-consciousness, state of mind, the consumer’s time sense and customer service are strongly predictive of online shopping satisfaction (Katawetawaraks & Wang, 2011; Liu, He, Gao, & Xie, 2008; Mudambi & Schuff, 2010; Novak, Hoffman, & Yung, 2000; Shergill & Chen, 2005; Sorce, Perotti, & Widrick, 2005).

In Malaysia, information quality and purchase quality linked with the post-purchase quality are statistically significant in the case of customer satisfaction (Vegiayan, Ming, & Harun, 2013). However, brand image and quality of products, goodwill of country of origin also influence significantly on purchase intention of online products (Haque et al., 2015). Moreover, online data extraction about the products, services along with the historical data for individual customers is ingredient element to choose an online store or make re-purchase decision (Liao, Chu, Chen, & Chang, 2012).

Koufaris (2002) identified that both shopping enjoyment and perceived usefulness (website) strongly predict the intention to re-purchase over online. On the contrary, Lee and Lin (2005) found shopping enjoyment can increase the intent of new customers but does not influence customers to return. In fact, the web store which utilizes value-added mechanisms in the search engine and providing customers a challenging experience may increase customers’ shopping enjoyment. Furthermore, if there are more often customers back to the web store, their shopping enjoyment then be determined by their involvement with the product (Marios Koufaris, Kambil, & LaBarbera, 2001)

Also, demographic variables such as age, gender, and level of income play a facilitating role because they influence consumer perception and consumer behavior that drives them towards online shopping (Kim, Zhao, & Yang, 2008; Laforet & Li, 2005; Sabbir Rahman, 2012). In China, online shopping intention depends on consumers’ age, income, and education as well as marital status most importantly their perceived usefulness (Gong, Stump, & Maddox, 2013).

Some practical suggestions could be provided to online retailers and e-marketers. The key finding of the study pertains to the effect of web atmospherics on e-satisfaction, and its further influence on shoppers’ e-loyalty. The study facilitates e-retailers in comprehensively deciphering the influence of various antecedents on satisfaction with portal related services. It observed that buyers’ e-satisfaction can be improved by creatively planning, organizing and delivering various website environmental stimuli like site’s effectiveness of information content, informativeness and entertainment (in the order). Since the findings suggest the influence of both utilitarian and hedonic values, online retailers should focus on both these variables. The e-retailers must provide for various product visualisation techniques, 3D models, 3D videos, etc. in the website. This would offer both utilitarian and hedonic benefits to online shoppers. These new and innovative visualisation technologies will also help in improving the entertainment quotient of the website, which was found to have the highest influence on shoppers’ e-satisfaction. Also, e-retailers should ensure the availability of right priced and good quality products, as these are expected to positively influence shoppers’ satisfaction. This would give shoppers a sense of success while shopping online. A website that provides good navigational control to the shoppers would be preferred over other portals. Such portals help shoppers achieve a sense accomplishment of their shopping goals.

Different segments of online shoppers have varying expectations from e-stores and hence, it is pertinent that online retailers must conceptualise, plan and execute various elements of the web portal with due consideration of target shoppers’ expectations. As per the present study, the influence of information effectiveness on e-satisfaction was found to be highest and so web developers must equip the web portal with relevant and easily locatable information. They must also focus on adding entertainment and excitement values to their portals. These values create esatisfaction. Hence, it is essential that the web portal should be eye-catching, creative and stimulating. The study also showed utilitarian value had greater significant influence on shoppers’ e-satisfaction and e-loyalty. Consequently, online retail firms should focus on offering goods and services of highest quality with lot of variety to choose from. This should be accompanied by providing precise, truthful and impartial information on the e-retail sites. These features should be supported by providing services and offerings that focus on benefits to consumers like offering best value proposition, conducive delivery services, and multiple options related to payment mode. By ensuring effective information and utilitarian value through their websites, e-retailers can increase the shoppers’ likelihood of spending time and browsing on their website, which will increase their satisfaction with and loyalty for the web portals.

This study shows the influencing power of E-commerce on the buying behavior and pattern of customers and how it has changed and advanced. Over the last two decades the E-commerce had advanced such a way that it spread into almost the whole world. The rise of E-commerce was seen as a great opportunity to enhance business and adapted by most of the businesses. This adaptation brought revolution in the consumer buying behavior and it has been observed that most of the people switched to online shopping and the businesses have altered their strategies to advance their marketing ways in order to increase their sales in this category. Mostly all the electronic systems were made for one purpose i.e. to save time and be efficient.

The main aim of businesses in adapting E-commerce is to provide ease to people so that they won’t have to go any physical stores and everything comes in handy and they govern most of their purchases by their fingertips. Most of the famous industries and firms are now made themselves available on the Internet as they have observed the demands of the consumers. Only physical stores are not enough or the businesses now, their online presence is equally valuable which also includes their official websites and the services that they are capable of providing. Furthermore, E-commerce is tool by which the firms have the capability to save time and increase their profit margin and by simplifying the purchase process a business can rise as more advanced and revolutionized.

E-commerce has not only changed the purchasing pattern of the customers but also their perception, perspective and attitudes in shopping. Even in the area of health and digital technology. It is now an essential component which demands a lot of focus by the businesses and to blend in and be prominent and dominant in the social environment. Also, in the supply chain of company and electronic data interchange it plays a significant role. This study shows how e-commerce strengthens the communities and influences their standpoints by introducing promotions, marketing methods, created value and reliability. In this study, by attaining the outlooks of individuals, the extent of effect of E-commerce would be identified upon consumers, stakeholders and businesses. Delone and Mclean (2004) states that, the businesses invests so much in E-commerce so it is necessary that the impact on consumers would be at large. Grandon (2004) discusses the impact of E-commerce by stating that it is a combination of business and electronic which aims at success and requires additional management.