Consumer Behavior: Offline And Online Shopping

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1. INTRODUCTION 1.1. Research Background The survival of a business depends on how well a company knows and understands their customer. Zairi in Sharmin (2012) states “Customers are the purpose of what we do and rather than them depending on us, we very much depend on them.” (p. 17). Although a company is able to provide good products or services, nobody will buy it if people do not need it or believe that they do not need it. Without knowing the customer needs, it is difficult for companies to sell the right product to the right customers. Therefore, a successful company should know the wants and buying behavior of their target customers. In this modern society, time becomes more valuable as people are busy with their work, school, cooking,…show more content…
Shopping refers to the activity of purchasing goods from a certain store. This includes all activities in the shopping process such as searching for information, selecting, comparing and finally purchasing the goods. Subsequently, people tend to avoid shopping due to its time-consuming nature. Therefore there is a need for a more efficient way of shopping. Shopping has two different channels: offline and online shopping. Since offline shopping requires people to go to the store physically and purchase the product, this activity is not efficient and time-consuming. With the revolving of technology, shopping can be done through online. Since people nowadays value time, they want to get information and buy anything at anytime, anywhere. All of these problems can be solved through online shopping. Online shopping provides information, convenience, and choices to compare product and price without go to the store physically (Katawetawaraks and Wang,…show more content…
Research Question The researcher has developed the background of this study, therefore the researcher constructs the following question: Do consumers’ channel risk perceptions, price search intentions, search effort, evaluation effort, and delivery time influence their channel switching behavior in Surabaya? 1.3. Research Objectives Generally, the objective of this research is to analyze factors that affecting consumer’s channel switching behavior, since in this era people started to switch from offline to online shopping. However, the specific objectives of this research are as follow: a. To find out whether channel risk perceptions, price search intentions, search effort, evaluation effort, and delivery time influence consumer’s channel switching behavior or not. b. To find out which factor has the most significance effect towards consumer’s channel switching behavior. 1.4. Research Benefit This research is expected to be beneficial for several parties that have a direct or indirect impact on this

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