On-line customers : identifying store, product and consumer attributes which influence shopping on the internet

The purpose of this study was to systematically analyze the influence of store, consumer, and product attributes on adoption of shopping via the Internet. The objectives of this study were to determine why consumers use the Internet as a shopping medium, which consumers were making purchases via the Internet, and what kinds of products they were more likely to purchase via this medium.

Ten retail store characteristics were analyzed, and intent to purchase fifteen product categories via the Internet was investigated. Additionally, consumer demographics and attitudes were included in the analysis models. Factor analysis was used to group products together, based upon the intent to purchase each product category via the Internet.

Factor analysis performed on the ten store characteristics of the Internet determined these variables grouped into five factors.

Three of the eight hypotheses regarding store characteristics of the Internet were supported: merchandise quality, merchandise variety, and customer service. These results indicate consumers value the merchandise assortment and customer services when choosing to patronize the Internet as a shopping medium. Insecure credit cards transactions are a deterrent for patronizing the Internet. It would seem to be very important for merchants to disclose the security of their site in a prominent method to the on-line user if they are to gain acceptance in this retailing medium.

Higher levels of opinion leadership and domain specific innovativeness were found to indicate greater likelihood to shop via the Internet. However, market maven propensity and purchase decision involvement were not found to be indicative shopping via the Internet. Consumer demographic characteristics found to be significant included age, gender, one occupational category, nationality and metropolitan size of residence.

Finally, the predicted product categories of high purchase intent/volume, books and magazines, music, computers and travel products were four of the five highest purchased product categories. The other product category with high frequency of purchase was business services.

It would appear that on-line shoppers are Opinion Leaders, Innovators, specifically Domain Specific to the Internet. Additionally, men are more likely to purchase via this medium, and those who intend to shop on-line are more likely to be younger. Finally, where consumers live may play a role in their patronage of the Internet. The results tend to indicate that people living in suburban areas of small metropolitan populations are more likely to purchase, while those living in larger metro areas are less likely. These results may be indicative of the merchandise available and the store selections in the respective regions.