Wiebke Reile,  Factors Influencing Online Shopping Behavior of Consumers, (July 23, 2018, 12:07 AM),
https://www.searchfit.com.

Statement: Factors affecting Customer Spending Decision on Online Shops based on Economic Situation

According to Wiebke Reile (2018) The sellers online consist of all those manufacturers who
want to sell their products. The internet is an extremely easy and cheap way of promoting and
marketing products. Online platform eliminates the need for a producer to have branches or offices
with sales teams and retail outlets in all the parts of the world where he intends to sell products.
Hence, the internet expands the reach of the sellers across a large number of consumers.

 Financial risk is the main factor influencing individuals who are shopping online.  Financial risk is
the peril of losing a certain amount of money while purchasing a product online or making
setting it up to make it function well. The older generations tend to fret more about their
security and privacy of their bank account information.

The personal financial information being disclosed from a transaction online is another worrying
factor for consumers. There is a risk of this personal information given to or stolen by a third
party to send emails and spam to customers. Many customers need assurance that their data
will be protected, hence influencing behavior. Individuals with a higher inclination towards risk-
taking opt for online shopping.

 Product risk  is the next significant influencer of consumer behavior. Not receiving the
products or receiving damaged goods after payment is made online is a common fear in
consumers. Consumers may anticipate the loss of the purchased products, delay in delivery,
thus fluctuating in online shopping behavior.
 Limited information and the inability to see a three-dimensional version of the product is
another factor that might influence consumers. Consumers know all the details of what they
are purchasing from a physical store. They get the real feel of the product here, unlike those
available online only in the form of pictures.This often causes cautious consumers to avoid
online shopping in order to eliminate a gap in the expectations and the reality.
 The policies of the seller become an important influence in the behavior of consumers while
shopping online. For example, if the return and refund policy of the seller is quick and
efficient, it may increase the consumer’s trust in the seller and create loyalty. On the other
 hand, if the policy is weak or not flawed, buyers may avoid purchasing from that seller and
search for alternatives instead.
 Another aspect of online shopping that influences consumer behavior is ease and comfort.
Consumers need not waste time in stepping out of their homes and searching for the desired
product.They can purchase anything they need or want via online shopping.
 Consumer behavior is also influenced by various choices and preferences based on likes and
dislikes. Each consumer has his/her own tastes in fashion, food and drink, furniture and so
on. Even though sellers aim to divert these interests to their own products through ways like
marketing, consumers do not lose their individuality entirely. They may try and test new
products. Hence, these inherent inclinations and aversions and the fluctuations affect online
shopping behavior.
 Apart from advertisements, society may also influence the individual. This society can
include one’s social circle, state, country or global society. Groups affect the decisions made
by a consumer. This can consist of the consumer’s friends, family, classmates, colleagues,
celebrities and so on. The biggest example is the demonstration effect where an individual
copies certain consumption patterns of other individuals.
 Finally, there is also a prevailing influence on the purchasing power of the consumers. They
can only purchase those products that they can afford at that moment in time. Hence, even
the best quality products having all the aforementioned positive prerequisites will go unsold
if the consumer cannot pay for it. Consumers often have a budget which they make
according to their savings and earnings. They tend to purchase goods in accordance with this
budget, hence resulting in changes in online shopping behaviour.