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An Investigation of preference & Satisfaction towards online apparel

Purchase : A Customer Perspective

Dr. Durga wati kushwaha


Assistant Professor
Master of Business Administration
Institute of Engineering & Technology
An Autonomous Constituent Institute of Dr. A.P.J. Abdul Kalam Technical University

Email: durga.kush@gmail.com
_____________________________________________________________________

Abstract:

Internet has played a significant role in our daily life from communicating to distant places
through emails, video calls, online chats, social networking across the globe to playing games
with others along with purchasing the goods or services through electronic media. There are
several reasons behind the tremendous inclination of consumers towards online purchase
especially the purchase through the Apps over desktop, Smartphone or the tablets.

In this research paper the researcher intends to find the various reasons which are propelling
the growth of purchases through apps with reference to the apparels purchases along with the
satisfaction level with the services provided by these online merchants.

The data was collected by the primary survey of the consumers who make online purchases of
the apparels. Analysis & Interpretation of data was done by using various data representation
techniques as well as statistical tool such as correlation is used to draw conclusions.

The study reveals that the most of the respondents prefer the online mode over the traditional
method of purchases and they are satisfied by the offerings and the other aspects of e-commerce
services provided by these online sites / mobile apps.

Keywords: E- Commerce, Customer Satisfaction, service quality

1. Introduction:

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With rapid technological advancement & growth of various online resources, e-commerce

provide ample marketing opportunities to firm in which is evident through the incremental

interest of young generation in online purchases, further it has impressed many retailers to sell

products and services through online channel to expand their market. E-commerce or online

shopping generally utilizes the technological resources viz-a-viz internet, Smartphone‘s or

tablets which enhances the firms marketing performances many fold. Retailers are also

modifying / integrating their strategies to meet the demands of customers as well as to overcome

the stiff competition. This change in the external environment has also provided researchers a

new domain of study in consumer behavior where efforts are made to highlight the consumer

attitude, satisfactions, preference & the motivating factors for online purchases etc.

Online shopping (sometimes known as e-tail from "electronic retail" 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. Various other terminologies related to online shopping

may include virtual stores or web stores or online stores. Nowadays, retailers generally provide

these online services through mobile apps or optimized web pages exclusively for Smartphone

user which is known as mobile commerce (m-commerce). This mobile commerce has gained a

lot of momentum these days.

Virtual stores / shop are generally analogous to physical purchase made at a bricks-and-mortar

format of retail store; & hence the process could be rightly termed as business-to-consumer

(B2C) online shopping in case of Individual consumer. However, if the end users / consumers

are large businesses it can be termed as business-to-business (B2B) online shopping.

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Online shopping is not a new concept as it appears to be, however one may be surprised to know

that it was invented way back in 1979 by an English entrepreneur named ―Michael Aldrich‖. He

created a system which when connected to modified TV was able to do real time processing via

household telephone. He named it as vediotex (modified domestic TV technology) & believed it

to be a simple menu-driven human–computer interface, was a 'new, universally applicable,

participative communication medium after invention of telephone. This system also enabled

closed information systems for corporate, opened to ‗outside ‗correspondents for transaction

processing along with information retrieval & dissemination also known as e business later on.

He described this new mass communications medium as ‗participative‘ entirely different from

traditional ones. 25 years later it emerged as precursor to the social networking through internet.

E- MARKETING

E-marketing refers to use of digital technologies that enables & aids the selling of product or

services. These digital technology enabling transactions are complimentary to tradition

methodology / marketing ideology irrespective of the nature as well as business size. These

technologies have enhanced the number of options of delivering the right message to right people

at right time. Though businesses will continue to make use of traditional marketing methods,

such as advertising, direct mail and PR, e-marketing adds a whole new element to the marketing

mix. The cost effectiveness & flexibility along with the outcomes in terms of sales as well as

reach is making it suitable for small businesses too.

E-Marketing may include various other customer related aspect such as information

management, public relations, customer service, and sales. Increased Internet accessibility & use

is one of the prime drivers of E-marketing. Reports have indicated a steep rise in purchases made

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by customers through internet while at home or at workplace. The growth of e-marketing has

been one of the most significant and prominent trends in the field of business, marketing and

Information Technology over the past decade. It has also revolutionized the product & business

promotion, further the social media advent offers the potential to revolutionize the manner in

which businesses and consumers interact in the future.

There are many reasons why business enterprise wants to go online, the most common is that it

provides estimate of future demand and along with the monitoring the progress of marketing

activities. Different businesses may develop different e-marketing framework depending upon

their individual required. Various researches have proposed different framework for setting e-

marketing objectives, it can be best summarised as ―5 S‖ framework as shown below in

diagram:

sell

sizzle serve

save speak

Reasons for Growth of E-marketing

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E-marketing gives businesses of any size access to the mass market at an affordable price and,
unlike TV or print advertising, it allows truly personalized marketing. Specific reasons for the
growth of E-marketing are:

 Global reach – A website can reach anyone in the world who has internet access. This

allows you to find new markets and compete globally for only a small investment.

 Lower cost – A properly planned and effectively targeted e-marketing campaign can reach

the right customers at a much lower cost than traditional marketing methods.

 Track able, measurable results – Marketing by email or banner advertising makes it easier

to establish how effective your campaign has been. You can obtain detailed information

about customers ‗responses to your advertising.

 24-hour marketing – With a website your customers can find out about your products even

if your office is closed.

 Personalization – If your customer database is linked to your website, then whenever

someone visits the site, you can greet them with targeted offers. The more they buy from

you, the more you can refine your customer profile and market effectively to them.

 One-to-one marketing – e-marketing lets you reach people who want to know about your

products and services instantly. For example, many people take mobile phones and PDAs

wherever they go. Combine this with the personalized aspect of e-marketing, and you can

create very powerful, targeted campaigns.

 More interesting campaigns – e-marketing lets you create interactive campaigns using

music, graphics and videos. You could send your customers a game or a quiz – whatever you

think will interest them.

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 Better conversion rate – If you have a website, then your customers are only ever a few

clicks away from completing a purchase. Unlike other media which require people to get up

make a phone call, post a letter or go to a shop, e-marketing is seamless. Together, all of

these aspects of e-marketing have the potential to add up to more sales.

Unique Challenges of E-Marketing

Since the boom of the Internet in the late 1990s, Web-based companies have been starting up

every day. What is more, new opportunities for growth emerge daily, expanding the reach and

capabilities of the cyberspace. However, for all its benefits and advantages, e-marketing faces

some problems that are unique to the industry. That is, Web-based enterprises have a special set

of challenges that traditional brick-and-mortar businesses do not have. In this article, we have

taken a look at those and their possible solutions.

1. Marketing Integration

Most major sales efforts employ multiple channels, both online and offline, e.g. email

advertising, outbound call handling, social networking, and so on. The problem with these is that

they are often handled as different parts of the work when they are supposed to serve a concrete

and measurable goal as part of an integrated campaign. Coordinating all marketing efforts should

therefore be a priority. That means e-marketing should be done alongside the traditional

campaign and should not be tacked at the end of the business plan.

2. Security and Privacy

Most people do not completely trust Web companies and, thus, are careful about offering

information about them on the cyberspace. This is especially true when companies that collect

data are exposed to spammers and scammers. To address this, it is imperative for e-businesses to

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adopt a sound policy and implement a fool-proof security measure. Encryption systems, in

particular, are a tool that online companies should seriously consider investing in.

3. Impersonal Service

Businesses operating online often use electronic methods of providing customer service, such as

emailing and posting info on the website to answer possible user questions. This may be

perceived by customers as just too impersonal or uncaring. To address this problem, merchants

must develop efficient checkout procedures for selling goods via the Web. They may also

consider hiring call handling services, so that customers can talk to real people when they have

inquiries or problems that need instant answer

4. Improving Brand Awareness

This is particularly a big challenge for companies that primarily use the Internet to sell their

products and services. This is because unlike traditional advertising (such as television, radio,

billboard, and print) in which the campaign's message can be reinforced and repeatedly

introduced to consumers at the marketers' will, online adverts can be shut off by users—they are

more averse to it, too. Web companies are therefore challenged to be more innovative in their

advertising strategies. A combination of good copywriting, solid search engine optimization, and

drawing consistent traffic is something that should be mastered. Doing business online is indeed

a challenging Endeavour. That is why all possible pitfalls should be determined and addressed

beforehand to ensure a smooth sailing ride. If you need help in starting up a Web based

company, never think twice to enlist the services of Protechmedia.

OPPORTUNITIES OF E-MARKETING

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There are many more opportunities of internet marketing that helps the online business more

efficient.It provides all the products which they think that customers like to buy by doing this

they satisfy their customers. When their customers shop with them their growth opportunity is

high which is good for the business also if all the products are being offered online people do not

have to go elsewhere which benefits the customers as well.

 More benefits- customers can use the Internet at a time to suit them, but they are also able

to compare brands, prices and buy goods and services without having to face a single sales

person!

 Improve credibility- Through Internet marketing customers can easily feedback to ASOS

and have their say. Because ASOS is mostly aimed at teenagers and most of the teenagers

nowadays use MSN and face book and ASOS interact their customers through this it is

quicker and easier for young people to send information and comments.

 Availability - On ASOS website all the products are listed in order which helps customers

choose the products faster where as in shops they would have to go around looking for

products. Also on the websites like ASOS customers have more choices and variety of

brands which is less likely to be found in general stores.

 Better prices- online businesses are usually cheaper than physical stores they offer variety

of products at lower prices this benefits the customers because they can get the same

product offered in the shops at lower price. Another advantage of Internet business to

customers is that they can look at the prices offered on the web and compare with other

slimier businesses.

 Cheaper-online business is cheaper therefore it saves money to businesses like ASOS.

They do not have to spend huge amount of money to rent or buy physical stores. Also online

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businesses can use web to advertise their business which costs less and could be recognized

by millions of people.

 24/7 Presence- internet businesses allow people to shop at any time of the day this makes

the businesses like ASOS more effective because everything about their business is fixed for

example like physical stores internet businesses do not have particular opening and closing

times. The business runs smoothly without any worries.

 Offer Convenience -businesses like ASOS have organized their website in such a way that

people can find the product really easily this is the reason why online businesses are more

efficient because unlike physical stores they do not have to go around with customers to find

a particular product. On their website they have put all their products in categories which

help customers find the products fast and easy. It helps the business because once their

website is properly organized they do not have to do anything else which saves them time

and energy.

 Growth Opportunity- Online businesses provide all the products to its customers that can

be purchased from physical stores. As it is easier to shop online than visiting the stores most

people prefers shopping online which helps businesses like as their growth opportunity goes

up and their profits begin to rise. This makes their business more effective as they compete

with other similar businesses for the same product or price.

2. Review of Literature:

Kotler & Keller (2009), a buyer goes through five stages while making a decision to purchase.

These stages are ―problem recognition, information search, evaluation of alternatives, purchase

decision, and purchase behaviour‖. All the five stages are best explainable when a buyer goes for

buying costly items, such as a house, a car, diamond jewellery etc. However, in day- to- day

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purchase, consumers may not go through all these stages, since these items do not need

information, and based on previous experience the consumer will visit a store for the purchase.

Many marketing activities (e.g. relationship marketing, marketing research, data mining,

promotion/communications, supply chain management, sales and purchasing and after sales

support) are now technology enabled due to the increasing expansion of online marketing via the

Internet (O‟Connor & Galvin, 2001). Now-a-days companies are using Internet to build closer

relationships with consumers and marketing partners. Besides competing in traditional

marketplaces, they now have access to exciting new market spaces. Moreover, through the

Internet, consumers can learn about design, order, and pay for products and services, without

ever leaving home and then, through the wonders of express delivery, they can receive their

purchases in short time. From virtual reality displays that test new products to online virtual

stores that sell them, the technology explosion is affecting every aspect of marketing. The

Internet has now become a truly global phenomenon (Srisuwan & Barnes, 2008; Teng et al.,

2007).

Kotler (2000) defined satisfaction as: ―a person‘s feeling of pleasure or disappointment resulting

from comparing a product‘s perceived performance (or outcome) in relation to his or her

expectations‖.

Hoyer and MacInnis (2001) said that satisfaction can be associated with feelings of acceptance,

happiness, relief, excitement, and delight. There are many factors that affect customer

satisfaction.

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Hansemark and Albinsson (2004), ―satisfaction is an overall customer attitude towards a

service provider, or an emotional reaction to the difference between what customers anticipate

and what they receive, regarding the fulfilment of some need, goal or desire‖.

Demangeot and Broderick (2007) reported that ―information search experiences affect the

attitudes towards the site and its brands‖.

Online shopping behaviour has direct relationship with these five elements such as e-stores,

logistics support, product characteristics, websites‘ technological characteristics, information

characteristic and home page presentation. According to studies, those people who have wired

lifestyles and who have time constrained, they spend less time to buy things online (J.Johnson,

1999).

Chang, et al. (2004) studied on categorization of variables which drive online shopping activity.

According to their study, features are divided into three main categories. First one is perceived

characteristics of the web sale channel which include risk, advantage, online shopping

experience,service quality, trust; second category is web site and product characteristics which

are risk reduction measures, web site features and product characteristics; and the last category

clarified by authors is consumer characteristics. Consumer characteristics are driven by various

types of features. Consumer shopping orientations, demographic variables, computer, internet

knowledge and usage, consumer innovativeness and psychological variables.

According toGay et al. (2007), Yun and Good (2007), Lee and Lin (2005), Rajamma et al.

(2007) , Kim and Kim (2004) , Ramus and Nielsen (2005) , Ladson and Fraunholz (2005),

Kramarae and Kramer (1995), Welch (1995), Rathmell et al. (1998), Johnstone (1999),

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Singh (2004), Smith & Chaffey (2002), and Canavan et al. (2007),: consumer satisfaction and

purchase decision on online shopping depends on few more issues. These are: e-store image,

delivery and customer services, service quality and purchase behaviour, personalisation,

motivations for online purchase, trust, reliability, privacy, transaction and cost, incentive

programmes, web-site design, online interactivity, merchandise motivation, assurance,

convenience (or Hassle Reduction), pragmatic motivation, responsiveness, consumer risk

assessment etc.

Christian & France (2005) proves that customers satisfied the most were privacy (Technology

factor), Merchandising (Product factor), and convenience (Shopping factor); also followed by

trust, delivery, usability, product customization, product quality and security. Surprisingly,

security was chosen as the last choice comparing to others. This was assumed that security is

perceived as a standard attribute in any websites so other attributes take priority once customers

have to choose the site to shop from

David J. Reibstein (2002) has studied about factors attracting customers to the site and factors

being able to retain customers by mainly considering the role of price. However, customers tend

to shop at other sites unless the vendors provide them good customer service and on-time

delivery. Interestingly, e-shopping site using low prices or price promotions to attract customers

do mostly tend to draw price-sensitive customers who are well known as having low loyalty.

Advances in wireless technology have increased the number of people using mobile devices.

Nowadays, mobile devices have become a part of our lives. This trend has brought an

opportunity to shop online form via mobile devices, such as smartphones, e-readers, tablets, etc.

(Hillman et al, 2012). Moreover, it's no secret anymore that with the developments of mobile

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devices, smartphones or tablets, online shopping have become more convenient (Judith, 2012).

Mobile devices 'also contributed to the increase in sales'. (Internet Marketing Ninjas, 2012).

These innovations of the technology more likely encourages consumers to buy online.

3. Purpose of the study


Consumers are increasingly adopting electronic channels for purchasing their daily needed

products. Recent years have shown a growing interest of customers in e-shopping. The

globalization of competition and development of information technology have enhanced

customer awareness and created a situation where people prefer shopping online rather than

migrating as online shopping provides quality products as well as saves time. These drastic

changes that has been foreseen in the field of e-shopping and the customer's preference towards

e-shopping motivates the researcher to conduct a study on customer preference and satisfaction

for the purchases made through online mode especially in apparels segments. This research

focuses on following objectives:

a) To find out the percentage of people using e-commerce websites for purchasing apparels

and the most preferred website.

b) To study or identify the top five reasons for using mobile apps.

c) To find out the factors as well as level of satisfaction towards mobile apps for purchase of

apparels.

d) To study the association between satisfaction level and demographic profiles of

respondents, if any.

4. Research Methodology:

4.1 Instrument and Measurement

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This is an exploratory study based on primary data; the data has been collected through survey.

The survey instrument was devised to assess their perception and satisfaction towards various e-

commerce sites which offer online solutions for the apparels. The questionnaire comprised of

Dichotomous Questions as well as questions on Likert scale. Demographic information was also

collected in this survey and relevant items were also included to gather all necessary information.

4.2 Population and Sampling

The questionnaire was distributed amongst respondents through online forms as well offline

methods based on the convenience of the researcher, however a due care was taken to include

only those respondents who are regular users of online apps for apparel purchases. Those

respondents who opted for traditional method of purchases were dropped out in the beginning

itself. Approximately 125 respondents were contacted for the survey purpose; however only 100

responses were valid for the study. Thus, the response rate of the study was approximately 87

percent.

5. Data analysis & Interpretation


Table 1: Demographic Profile of respondents

Demographic Group N Percentage (%)

Age 19-23 52 52
24-28 40 40
29-42 8 8
Gender Male 63 63
Female 37 37
Occupation Student 72 72
Working 28 28
Undergraduate 7 7

Graduates 13 13
Education
Postgraduate 60 60

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Research scholars 7 7
Others 13 13
Upto 250000 20 20
300000-750000 13 13
Annual income
800000-1560000 6 6

Nil 51 51

Percentage of people using e-commerce websites for purchasing apparels and the most
preferred website
In survey of around 125 respondents it was found that 17 % of the respondents opted for the

conventional / retail shopping as their way of buying apparels. Hence these were kept away from

further survey. 65% of the respondents preferred both online as well as retail shopping as their

preference of shopping mode. While 18% chose to buy the apparels using only online mode.

After excluding 17% (n= 22) of respondents from the survey further the study was conducted

and it was found that of the various available online apparel sellers flipkart was the most sought

after for the purchases as more than 71 % (approx)of the respondents preferred it, followed by

amazon (62% approx.), Myntra (43% approx), snapdeal (41% approx.). Hence we can say that

flipkart is capturing the major market share of the online apparels and is most trusted among

people.

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Figure 1 Most Preferred website

Study or identify the reasons for using mobile apps with reference to apparels

 In the study it was more than 70% of the respondents preferred to choose the mobile

apps over the PC /desktop version because of various reasons. The most accorded reasons

for the preference is ease of use/ portability factor followed by Can purchase anytime

anywhere (time boundaries are removed), last but not the least simple user interface.

However more than 45% (n=50) respondents opted for more than one reason for their

preference

Figure 2 Reasons for using mobile apps over desktop version

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 As far as the purchase frequency is concern it was found that only 20 % of the

respondents are purchasing apparels through apps from past 3years,30 % of them were

using apps from past one or two years. Remaining are using the apps for purchase for less

than one years.

 As far as rebuy intentions through apps is concerned only 13% of the respondents are

highly enthusiastic, 49% of the respondents are very likely to purchase through apps. But

remaining respondents were not very sure whether they will be purchasing through apps.

Out of various reasons provided to the respondents the survey results reveal that most prominent

reason for the purchase of apparels through app was ease of shopping and it was supported by

approximately 53% of the respondents followed by door step delivery and range of available

variety.

Factors as well as level of satisfaction towards mobile apps for purchase of apparels

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Further investigation of factors concerned with the choice of purchases done through mobile

apps, it was found that major contributing variable aregood value for money (52% ,n=57),

Usefulness(41% , n=45), reliability (31%, n=34).

The study also reveals that

As far as the satisfaction level with the purchases was concerned it was found that 85% of the

respondents were satisfied through the purchases they made through mobile apps. 2% of them

were highly satisfied. Only few of the respondents were not satisfied (3%).However 10 % were

neutral for the purchases they made through mobile apps. The study also reveals that more than

70 % of the respondents were willing to spread word of mouth for the mobile purchases are

acting as a tool of publicity for these apps.

Satisfaction level with purchases


90
85
80
70
60
50
40
30
20
10 10
0 2 1 2
Highly Satisfied Satisfied neither Satisfied Dissatisfied Highly
nor dissatisfied dissatisfied
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Association between satisfaction level and demographic profiles of respondents

Pearson correlation was applied in order to find out the relationship /association between

satisfaction levels (Dependent Variable) and Demographic Variable viz. Age, Gender, Annual

Online purchase (Independent Variable).

Table: Correlation between Satisfaction level and Demographic variables

Dependent Variable Independent Variable CorrelationsCoefficient Significance level

Satisfaction with Online Age -0.035 .726


purchase Gender -0.058 .566
Annual Online Purchase 0.155 .123

The correlation study revealed that there is Non-significant and negative association is observed

between the satisfaction levels between the demographic variables viz. Age, gender. However,

the non-significant but positive association is seen between the annual purchase through online

and the satisfaction level of the users of the services. So, there is a kind of possibility that on

further increasing the sample size the association might turn into a significant one.

Findings and Conclusions:

In the present market scenario the increasing competition among the brands lack of time with the

consumers, increase in the disposable income level and many factors contributing towards the

growth of online marketing. After extensive market research companies found it economical as

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well as faster mode to cater the needs of the larger customer base through e-marketing/online

marketing.

The present research focusses on the survey of customer satisfaction towards mobile shopping of

apparels through apps. 100 people in the age range of 19-42 years were surveyed. Interestingly ,

it was found that 19 of them used mobile shopping strictly and rest others did use both the online

as well as retail marketing as their mode of shopping of the clothes.

About 40% of respondents admitted that they have been buying apparels through apps form 1-2

years. The most preferred website/app was Flipkart which was chosen by almost 37 people.

The ease of shopping and the doorstep delivery were the major driving factors behind their

choosing of the online mode of making purchases.

Majority of the people were satisfied with the services provided by the sellers and would

recommend purchasing apparel through app to a friend or a colleague. Almost all of them found

them cooperative in case of replacement was to be made for the apparels. 51% of the votes were

casted for the option that the apparels bought online are good value for the money. A majority

57% of the respondents said the product proved to be very well serving to their needs.62% of the

respondents said the rate of the quality of the products were neither high nor low. 34% found the

bought products to be of high quality and 85% of the respondents were satisfied with the service

provided by the apps for apparels.

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