Online consumer behaviour

In last week’s post, we explored various types of online business models and customer interactivity with websites. This week I will look at online consumer behaviour and introduce Rose and Hair’s (2011) framework for understanding online consumer experiences.

As a digital marketer, by studying the factors which influence consumers’ experiences online, it becomes a way of analyzing their future intentions to continue online shopping and engaging in the use of digital services (Wolfinbarger and Gilly, 2013).

Rose and Hair (2011) have formed a framework to better understand the concepts, which motivate and influence consumers online.

Figure 1: Rose and Hair (2011)

Below, I will further explain and critically analyse the antecedents listed in the framework.

Information Processing (IP)

Information processing refers to how individuals use their internal senses and mental processes to make sense the world around them (). IP is a very important aspect as it shapes how consumers deal with available online data and the way in which they evaluate their online experience using perceptions of a range of website features. Features can include payment form, product information available, the service provided, risks involved with privacy and many more (Mathwick, Malhotra & Rigdon, 2001). Therefore, by analysing previous consumer experiences through information processing, prior knowledge and involvements online can assist in navigating future consumer intentions.

Perceived ease-of-use (PEOU) & Perceived Usefulness (PU)

PEOU and PU tie in together as twin factors, as both concepts relate to how easy a website is to use and navigate, which then lead to positive experiences for consumers. PEOU is linked to the perception consumers have of different online websites, and PU is specifically aimed at how well websites support the consumer’s daily life i.e. banking & online shopping. Various factors can determine whether a website portrays PU include clear screen organisation, logical information flow and easy navigation (Elliot and Speck, 2005). Easy use search facilities and responsiveness of the site are extra features in which consumers may prefer when engaging online.

Perceived Benefits & Enjoyment

These two antecedents also tie in together as twin factors as Rose & Hair (2011) believe positive shopping experience is closely associated with perceived benefits received from websites consumers trust and are committed to. When consumers are rewarded with benefits from a brand, it causes a positive emotion and the brand is more likely to gain support. This could include being part of a rewards program, where spending is rewarded by cash back vouchers to the consumer, or specific discounts on other items.

Cao, Zhang & Seydel (2005) believe that consumer enjoyment can stem from interactivity and entertainment (i.e. videos and media) on websites, which can determine the consumer’s likelihood of returning to a website.

Perceived Control (PC) & Skill

These two antecedents correlate together as they refer to the individual consumer’s skill and ability to use the Internet with proficiency. The navigation and links in a website strongly affect the cognitive state of a consumer as it may make it easier or harder for the individual to access parts of the website, depending on their own skill.

Therefore, most websites will attempt to create a website based on their main target market, and perceived control. For example, an online e-commerce B2C website aimed at a target market of 18-25 year olds, may create a more intricate and interactive website for younger individuals who are generally more tech savvy than older generations.

Trust and Risk

Both trust and risk are also twin concepts, which relate to how consumers behave online when trying to achieve their buying goals, and the trust or mistrust they feel with certain websites. Risks can include financial, social and personal risks, which tie together with the trust consumers feel. Online e-commerce websites attempt to build trust with their consumers by creating secure websites, offering payment tenders such as PayPal and AfterPay etc.

References

Cao, M., Zhang, Q. and Seydel, J. (2005) B2C e-commerce website quality: an empirical examination, Industrial Management & Data Systems, 105, 645-661.

Chaffey,D. Ellis-Chadwick, F., Digital Marketing 6th edition, Pearson 2016.

Elliot, M.T. and Speck, P.S. (2005) Factors that affect attitude toward a retail web site, Journal of Marketing Theory and Practice, 13, 40-50.

Eysenck, M.W. (1993). Principles of Cognitive Psychology. Hove: Lawrence Erlbaum Associates Ltd.

Mathwick, C., Malhotra, N.K. and Rigdon, E. (2001) Experiential value: conceptualization, measurement and application in the catalog and Internet shopping environment, Journal of Retailing, 77(1), 39-56.

Rose, S. and Hair, N.C. (2011) Online customer experience: a review of the business-to-consumer online purchase context, International Journal of Management Reviews, 13(1), 24-39.

Wolfinbarger, M. and Gilly, M. (2003) etailQ: dimensionalizing, measuring and predicting etail Quality, Journal of Retailing, 79(3), 183-98.

#consumerbehaviour #ecommerce #informationprocessing #skill #trust #customersatisfaction