3.1 Online Store and Online Shopping
past few decades, it has been observed that online stores outweighs physical
stores in advantages. Online stores are proven to be less time consuming, more convenient
in terms of browsing, shopping, deciding from different alternatives and travelling.
Availability of online store is 24 hours which gives it a great advantage over
physical store (Niemeier, Zocchi & Catena, 2013). Interactivity is the
crucial feature which distinguishes marketing communication on traditional mass
media and Internet (Hoffman and Novak, 1996). As internet provides more
interactivities between customers and product (or services) provider and ample
amount of information about product and services, it offers online customers
more bargaining power and control as compared to customers of brick-and-mortar
store. Geissler and Zinkhan (1998) stated in their research that balance of
power has been shifted in the hands of consumers due to rise of internet and online
shopping as evaluation of alternatives and shopping comparisons had become easy
for customers. Also, online stores reduces cost of transaction which is
beneficial for both vendor and consumer.
brick-and-mortar stores are advantageous over online store in some aspects. A physical
sense of the product cannot be felt before purchasing while shopping online as
the process involves only viewing the product and purchasing it. Also, due to
lack of face-to-face communication, online stores usually develop low trust and
perceive elevated risks. These difficulties are reduced to some extent by new
technological advancements and online negotiation agents (Huang and Lin, 2007).
3.2 Perceived Risks
risk means the nature and volume of risk perceived by a consumer in anticipating
a specific purchase decision (Kaplan et.
al., 1974). Consumer consider various risks before making a purchase
decision of any product or services. These risks are referred as perceived
risks. Peterson et. al. (1997) states
that consumers usually prefer online purchasing of products which do not
require physical inspection. Higher the risk in purchase, higher are the
chances of the consumer to shift to brick-and-mortar stores and lower the risk
in purchase, lower are the chances of the consumer to shift to brick-and-mortar
stores (Jiuan Tan, 1999). Risks are mostly experiences due to failure in
technology or human errors. Most prominently cited risks in case of online
shopping involves product risks (difference in quality as viewed online),
monetary risk (card payment and financial information safe?), risk of
non-delivery (if product not delivered at all?), and convenience risk
(knowledge of placing order properly?). These uncertainties makes great impact
on the consumer’s behavior of purchasing products or services online (Bhatnagar
et. al., 2000).
attitude has long been associated with consumer buying behaviour since decades.
Fishbein and Ajzen (1975) proposed the model of attitude change and behavior which
states attitudes are affected by intention. An outcome of purchase transaction
can be examined through research on application of intension to online purchase
behavior. Attitude is a concept which involves several dimensions. Accepting internet
as shopping channel is one such dimension (Jahng, Jain, and Ramamurthy, 2001). Earlier
studies states attitude towards online shopping is a crucial predicting factor
of purchasing behaviour and making online purchase (Yang et. al., 2007).
3.4 Planned Behavioural Control
Behavioural Control is derived from the Theory of Planned Behavior developed by
Ajzen and Madden (1986). It is a determinant of both behaviour and intension. This
theory allows the prediction of behaviors over which people do not have
complete volitional control. George (2004) states that Planned Behavioural
Control directly affects online shopping behaviour. Adding to this, Khalifa and
Limayem (2003) states that the theory also has a solid relationship with actual
purchasing through internet.
Domain Specific Innovativeness