Consumer Behavior Literature Review

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CHAPTER 2 LITERATURE REVIEW 2.1 Introduction This chapter will explain about literature review for all dependent variable and independent variables that will support this research. The dependent variable in this research is online consumer behavior. For this research there are three independent variables used to test the dependent variable, which is security & trust, price and convenience. 2.2 Consumer Behavior According to Solomon (1998) Consumer behavior is the study of the processes involved when an individual selects, purchases, uses or disposes of products, services, ideas, or experiences to satisfy needs and desires. In order for the Internet to expand as a retail channel, it is important to understand the consumer’s attitude, intent…show more content…
Consumers’ online shopping behavior is based on the manifestation of online sellers’ website, the photos of products but not an actual real product (Park and Kim 2003). Different studies has inspected different factors on consumers online shopping adoption, like geography and store accessibility (Farag et al. 2006), perceived risk and online shopping benefits (Pires, Stanton, Eckford 2004), pleasure and web trust (Ha and Stoel 2009), attitudes to online shopping (Dittmar et al.; Ahn, Ryu, and Han 2007), and impact of consumers’ socio-economic conditions (Farag et al.…show more content…
The technologies and innovative business ideas of the Internet allow sellers to discriminate between buyers and buyers to discriminate between vendors. Historically, however, prices have been set by negotiations after having examined the product (Kotler & Keller, 2006). Tversky & Kahneman, (1991) founds that actual prices are the discounts or surcharges relative to price expectations, according to prospect theory. This perception affects the demands for a firm’s product, and hence its profitability. Consumers have a variety of prices in their memory against which they evaluate the current price of a product. The upper price limit is the price above which the consumer considers the product as expensive or belongs to a different sub-category. While the lower price limit is the price below which the consumer considers the product to be of poor quality. The acceptable price range is the difference between the two limits. In addition to price uncertainty, the width of the acceptable price range is determined by the customer’s price consciousness (Widrick and Sorce 1991), price knowledge (Kosenko and Rahtz, 1988), or purchase frequency (Urbany and Dickson 1991). The above studies suggested that occasional buyers (presumably with higher price uncertainty) have a wider range of acceptable prices as well as a higher midpoint than regular
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