Online Buyer Behavior
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OUTLINE
• Online buying behavior
• Consumer behavior Model
• Consumer Buying Decision Process
• Consumer Behavior Online
• Online versus traditional consumer
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Online buyer behavior
• Online buying behavior is a type of behavior which is exhibited by
customers while browsing websites of an e-tailer in order to search, select
and purchase goods and services, in order to fulfill their needs and wants.
• It is the decision processes and purchasing activities of people who
purchase products for personal or household use and not for business
purposes.
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Consumer Behavior Model
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Consumer Buying Decision Process/Possible Influences on the
Process
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Problem Recognition
Difference between desired state and
actual condition.
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Aspects Of Information Search
Internal Search
External Search
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Information Search
Internal
Experiential Group
Information
Sources
Public Marketing
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Internal Search
An information search in which buyers
search their memories for information about
their products that might solve their problem.
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External Search
An information search in which buyers seek
information from sources other than
memory.
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Evaluation Of Alternatives
Consideration Set
Evaluative Criteria
Framing Alternatives
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Alternative Evaluation
Subjective Criteria Attitudes Objective Criteria
“Sporty Image” “Four Wheel Drive”
“Popular” “Ability to Tow 10,000 lbs”
“Great Stereo” “Compact Disc Player”
“Rugged Image” “Seats Seven”
Alternative
Evaluation
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Cognitive Dissonance
A buyer’s doubts shortly after a
purchase about whether the decision
was the right one.
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Situational Influences
Influences resulting from circumstances, time,
and location that affect the consumer buying
decision process.
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Categories Of Situational Factors
Physical Surroundings
Social Surroundings
Time Perspective
Reason For Purchase
Buyer’s Mood/Condition
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Psychological Influences
Factors that in part determine people’s
general behavior, thus influencing their
behavior as consumers.
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Consumer Behavior Online
A Model of Consumer Behavior Online
The purpose of a consumer behavior model is to help
vendors understand how a consumer makes a purchasing
decision
Independent (or uncontrollable) variables – personal
characteristics and environmental characteristics
Intervening or moderating variables – market stimuli
and EC systems (vendor-controlled)
Dependent variables – buyers’ decisions
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– Personal Characteristics
Higher education and/or income levels are associated with more online
shopping.
More experience people have with Internet shopping, the more likely they
are to spend more money online.
Most-cited reasons people do not purchase:
Shipping charges (51%)
Difficulty in judging the quality of product (44%)
Cannot return items easily (32%)
Credit card safety (24%)
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– Environmental Characteristics
Social – people are influenced by family members,
friends, coworkers, and trends. Of importance are
Internet communities, discussion groups.
Cultural/community – where people live influence
what they buy. Rural shoppers differ from urban
shoppers, Europe shoppers differ from Asian
shoppers.
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Online versus traditional
consumer
Technology adoption
Online consumer is best predicted by Internet self- efficacy,
followed by perceived financial benefits.
Convenience and Decision Support
Online consumer only desire is convenience and timesaving.
Depth and breadth of information available on the Internet meets
the consumer’s need of information to make purchase decision.
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Online versus traditional
consumer
Market dynamics
More alternatives can be considered online because of
lower search costs and greater availability of
information.
Online consumers becoming less price conscious over
time.
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Online versus traditional
consumer
Loyalty and trust
The ability to customize products/services and transactional
environment online is far beyond the capability of traditional
store.
Consumer loyalty to access competitor’s site is only a
click away.
Trust for online consumer is an expectation based on past
performance, a strategy to reduce uncertainty, a willingness to rely
on an exchanging partner, and a perception
of reliability.
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Online versus traditional
consumer
Products versus services
Products are tangible and services are intangible in traditional
commerce but both products and services are intangible online.
Online shopping consumers concern about risk for products than
services, more concern about perceived ease of use for services
rather than products.
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Online versus traditional
consumer
Site design
The impact of the shop window are correlated to the impact of a site’s home
page but the impact of store layout versus site layout has some differences.
Thus, more study is needed to examine what design elements
affect online consumer behavior.
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Online versus traditional
consumer
Empowerment, persuasion and entertainment
The ability to shop worldwide at anytime from virtually any location
with the availability of real-time product and competitor information
increase consumer’s sense of freedom and power.
Personalized welcome pages and tailored recommendations list
provide customers with a powerful feeling of discovery.
Online consumers can react to persuasive media more often than a
human at selling.
Online shopping is also a form of entertainment and/or social
interaction.
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