2.1 Motivations of Online Retail Behavior
Just as every company does market research before actually developing a product, so too should retailers who are going into the space of Internet shopping. One such area of study that is commonly used is the motivations for online retail behavior. There are definitely functional benefits to online shopping thanks to the multitude of information available at fingertips and quick accessibility that allow users to lower their search cost (Alba et al., 1997). Other scholars have also directed online shopping motivations to the
‘fun’ and ‘entertaining’ aspects of connecting with online media and brands while shopping (B. Orwall, 2001).
Online retail is now driven by both utilitarian and hedonic motives (T.L. Childers et al., 2001), and this mix of efficiency and experience will further push the adoption of technology assisted shopping. Childers and his team explores this topic by using a framework known as Technology Acceptance Model or TAM (F.D. Davis, 1993), and touched upon 3 determinants: Usefulness, Ease of Use and Enjoyment. The study shows that these 3 basic determinants mentioned all have a positive relationship to the acceptance of technology assisted shopping, but Childers takes it one step further in his study by adding the context of the shopping environment.
By adding a context to the shopping environment (Figure 2.1.1) and classifying them as either utilitarian or hedonic, the hypotheses and results allow us to better distinguish the effects of the 3 determinants.
Figure 2.1.1 – Technology Acceptance Model by Childers
Childers’ research also acknowledges that the 3 determinants are but perceptions of consumers and the analysis required additional factors or antecedents that would be enable them to measure how consumers felt about each determinant. These antecedents include the flexibility of navigation so that consumers can complete the search for information (Alba et al, 1997), the technology’s convenience and overall accessibility, (D.L. Hoffman & T.P. Novak, 1996). As well as the obvious lack of physical touch whilst shopping online (Alba et al, 1997). After carrying out two separate studies to cater to different shopping environments, they present their findings in which both set of results point towards enjoyment being a consistent and strong determinant of acceptance toward online shopping. Similarly, usefulness and ease of use were also significant across both studies. Needless to say, enjoyment has a stronger effect then ease of use when in a hedonic environment, but in a utilitarian context it is the other way around. The paper urges us to note the varying level of significance depending on given contexts and that consumer’s attitudes or expectations may change. Childers concludes their study managing to prove their various hypotheses, highlighting how even in a goal-driven e-commerce environment, it is important to consider that by increasing the level of enjoyment for consumers, retailers are able to better differentiate themselves from brick-and-mortar shops.
2.2 Personalities and Experiences Approach
The adoption of web retail or Internet shopping is based on a prospective user’s overall attitude towards the technology (A. O’Cass and Fenech, 2003) and can be broken down into two major thoughts - perceived Usefulness and perceived Ease of Use (F.D. Davis, 1989; E. Karahanna and Straub, 1999). This is similar to the paper by Childers in using a TAM approach to study behavior towards adoption of Internet retailing, but O’Cass adds a different dimension to the study based on three factors that might influence consumer perceptions of Usefulness and Ease of Use.
The first factor mentioned is personality, and O’Cass brings up several authors who point out that opinion leadership influences innovative behavior. These opinion leaders have often been associated with early adopters, choosing to accept the perceived risk to meet their own needs (A. O’Cass and Fenech, 2003), and more importantly act as advocates or opponents afterwards. Personality is also reflected through a consumers’
spontaneity or susceptibility to impulse buying online (S. Beatty and Ferrell, 1998) just as he or she would while shopping at a physical store after touching and experiencing the product in the carefully crafted environment.
The other major factor that is brought up by O’Cass is consumers’ personal web experiences. The retailer or web designer creates most of the user experience, where the sites’ security, layout as well as navigation all come together to ensure consumer has a positive and satisfying experience. Shopping online does indeed contain a level of perceived risk in terms of information security, financial risks, not getting the product, poor quality of product etc. so how consumers view the security of a retail site is really important. Only with a satisfied experience will an online consumer be willing to take it
to the next step and make a purchase. A less commonly remembered part of the personal web experience factor is how long or how comfortable a consumer is with using a particular technology, otherwise known as self-efficacy (F.D. Davis, 1989). As a consumer interacts or uses multiple sites, they accumulate more personal experience, and this may create a belief in their efficacy for its extension into retail usage for purchasing products.
Last but not least, the compatibility between the technology and the users’ needs, values, past experiences and routines (E.M. Rogers, 1983). This means that the retail technology needs to provide the consumers real value and not just provide an additional storefront on the Internet (A. O’Cass and Fenech, 2003). Then this compatibility, or as O’Cass refers to as shopping orientation, will be able to positively influence both perceived Usefulness and Ease of Use.
Figure 2.2.1 – Technology Acceptance Model by O’Cass
The Figure 2.2.1 above summarizes the factors as well as components laid out by O’Cass, and his study concludes by highlighting how the many antecedents (Opinion Leadership, Impulsiveness, Shopping Orientation, Web Shopping Compatibility, Internet Self-Efficacy, Perceived Web Security, and Satisfaction with Web sites) affects Internet users beliefs about online retail.
2.3 Summary of Literature Review
Have most people begun simply with the topic of online shopping; there would have been many various paths to take to analyze this domain. The studies undertaken by Childers and O’Cass have hovered on the consumer behavioral aspects and sought to better understand the motivations of buyers in acceptance of technology. The utilitarian vs. hedonic argument presents us with very tangible aspects of discussion like how the navigation and accessibility affect a user. Whilst O’Cass approaches the topic exploring how experiences and personal learning will determine a users’ confidence in using web retail. Both studies provide us insight on the factors that may influence perceptions of consumers and are inline with what this paper hopes to explore.