Factors affecting the baby boomers in conducting online shopping

INTRODUCTION

Nowadays, the way consumers purchase the goods and services has been changed by internet. It has become a highly used medium for delivering products and services to customers. According to Turban, Lee, King, Liang and Turban (2009), internet is being flexible, open, informal, and interactive useful tool for dispersing information to customers. The latest information can be dispatched to customers speedily in 24 hours a day by internet. Online shopping is a fast and efficient way for consumers to purchase the goods and services. Internet is considered the fastest growing mode used to shop. By using internet, consumers can access an unlimited range of products and services from companies around the world and reduce the time and effort consumers spend on shopping (Ko et al., 2004 ). The consumers can conduct their online shopping with internet in every moment. Internet has impact on consumer behavior and practice of marketing. Among all the internet users, the baby boomers born between 1946 and 1964 are the group of consumers who actively involved in conducting online shopping. The 9 (nine) factors that makes baby boomers conducting online shopping are e-commerce, auction websites, online shopping malls convenience, price, brand, promotion and refund and security.

BODY
E-Commerce

The definitions of e-commerce are getting broader since the number of publications regarding e-commerce increases over the years. The first definition was simple, e-commerce has been defined as a process of buying and selling goods over the Internet. The term was developed later and it was added “exchange of information” in addition to “buying and selling of goods” (Chong, 2008). Reiner and Cegielski (2011) states that e-commerce is a “process of buying, selling, transferring, or exchanging of products, services, and/or information via computer networks, including the Internet”. E-commerce by Schneider (2002) in Kartiwi (2006) defined as economic activities and business conducted through Web storefronts in order to allow the activity of buying and selling products and services and to facilitate business transactions and activities among individuals and organizations. Referring to the broader definition, e-commerce is not limited to buying and selling products online. Moreover, consumers can also find suppliers, accountant, payment services, government agencies, and online competitors.

Thus, e-commerce is a new way of doing business (Seyal and Rahman, 2003; Schneider, 2002; Rahman and Raisinghani, 2000) in Kartiwi (2006). According to E. Turban, David K, J. Lee, T. Liang, D. Turban (2012: 38), e-commerce covers the purchase, sale, transfer, or exchange of products, services or information via computer networks, including the Internet. Some look at the terms of trade (e-commerce) just to explain the transactions that can be made between business partners. E-commerce is a product transaction or services performed online in a computer network. It is a procedure or mechanism to trade buying and selling on the internet where buyers and sellers met in cyberspace. It can also defined as a way to shop or trade online or direct selling that utilize internet facilities where there websites that can provide services “get and deliver”. E-commerce facilitates the exchange of information about products, before or during e-commerce transactions, hence improves the post-transaction satisfaction (Popa Cosmin, 2013).

Auction websites

A perfect platform for buyers and sellers to meet at one common place is auction websites. The benefit of auction websites is various products and services can be compared and bid by the buyer and the products can be sold at the highest price by the sellers. Many freelance projects and errands need it since providing a win-win situation for buyer and seller. Users can get it by charging a percentage of each successful project. Users can also monetize their website in others ways like making it AdSense ready, selling premium spots, memberships and also by selling digital products (Wpdean, 2016). A productive way to have more opportunity for e-retailers to sell the products or services is called auction website that provide cheap price to appeal to consumers (Haig, 2001). According to Lui, Wang and Fei (2003), auction websites persuade and attract the interested shoppers together to evaluate product value. The product with the compared and evaluated price is bid by online shopper. Then, the product is sold to bidders who offer the highest price by auctioneers.

Online shopping malls

Many retail sales take place online, and they tend to hit big-box stores harder, rather than the fashion chains and other specialty retailers in enclosed malls. The online shopping malls tend to be destinations for shopping (Tim Worstall, 2015). To reach a global customer base and selling various kinds of consumer products, e-retailers use online shopping malls that provided an unprecedented chance (Frendo, 1999). The benefit of online shopping malls for many e-retailers is having more customers visit the websites. In order to explore more marketing opportunities, online shopping malls is utilized to generate information (Dignum, 2002).

Conveniences

According to Wang et al. (2005), convenient of the internet is one of the impacts on consumers’ willingness to buy online proved by empirical research. Online shopping is open 24 hours a day, 7 days a week, available for customers in all the time comparing to traditional store (Hofacker, 2001; Wang et al., 2005). The customers choose to shop online because they can shop at any time when traditional stores closed since they want to avoid crowds, especially during the holidays (The Tech Faq 2008). In addition to products consumer is also looking for an available 24 hours online customer service since they can ask questions; get the necessary support or assistance after working hours so as to provide convenience to them (Hermes, 2000). Customers choose online services due to uncomfortable when dealing with sellers who are usually pressed and do not want to be manipulated and controlled in the market (Goldsmith and Flynn, 2005; Park, 2008). This happens to the customer who has a negative experience with the seller or they want to be free and make their own decisions without the presence of the seller.

Price

Price is one of the most important signs that market. Many studies have provided evidence that most consumers use price as a sign of a signal to indicate the quality of the product. At the price level is considered the “positive role”, the higher prices positive effect on the likelihood of purchase (Erickcon dan Johanson 1985; Lichtenstein, Bloch, dan Black 1988; Tellis dan Gaeth; Zeithaml 1988). Erickson and Johansson (1985) cited the example of the role of dual-purpose pins price in a single study and found that the perception of price-level have negative influence directly on purchase intentions and indirect positive influence on purchase through persepso intense product quality. Price is an important factor for customers in online shopping examine respondents’ attitudes to save money when shopping online since feel saving money when doing shop online (Sajjad Nazir, 2012).

Brand

Brand is defined as a quality associated with the product or service. Brand is the seller’s reputation and consumer loyalty. Different researchers and authors define brand in different ways. Aaker & Keller (1990) defined brand as a name, logo, trademark, and symbol. Basically, brands different of patents and copyrights (other assets), which have an expiry date (Kotler and Armstrong, 2004). The owners sell brand in the market at their own will with competitive cost. A reflection of the spirit and soul of an organization is a reflection of the brand. Brand does not represent the company’s products but it is a name, logo, trademark, and a symbol of the company that sets it apart and the core of brand loyalty in its position. The loyalty of end user is shown by the brand. Consumers feel as part of brand after continuous use it (Aaker, 1991).

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