This chapter will be divided into two parts: The first portion will explicate a character of consumer behaviour towards consumer behaviour, consumer purchasing determination procedure, high engagement such as purchasing trade name name merchandise, what is their outlook, what factors influence them to purchase on-line merchandise, and consumers ‘ perceptual experience toward purchasing online trade name name.
The last chapter will clear up the feature of on-line selling in Thailand.
“ Many authors on purchaser behaviour refer to Maslow ‘s Hierarchy of Needs theoretical account ( 1970 ) as a cardinal tool for catagorising different degrees of consumer desires and demands with the belief that basic, lower degrees demands would be met prior to fulfilling or indulging in higher degree demands ”
( Richard et al. , 2007 )
Therefore, we could state that Maslow ‘s hierarchy of demands theoretical account is a cardinal major in order to cognize what consumer privation and demands as is divided into 5 phases. ( See Figure 1 )
Figure 1 Maslow ‘s hierarchy of demand ( Maslow 1970 )
Each phase described about the consumer demand from purchasing basic merchandise such as milk, staff of life, or sugar, to higher degree of involvement merchandise such as purchasing a house. This is a basic construct that we have to maintain in head before understand consumer purchasing determination procedure because people has their single wants and demand, therefore the usage of purchasing determination has differ to each other. The sum of attempt used in doing the buying determination differs among people ( Solomon, 2002 ) . After, we understand a construct of consumer behaviour, so we will acquire through their purchasing determination procedure, engagement, factor that can act upon or actuate them to do purchasing determination.
Consumer Buying Decision Process
In order to make purchase, consumers on a regular basis pass through the procedure that called “ Five phase theoretical account ” ( See Figure 2 ) .
Figure 2 The five phases theoretical account of consumer purchasing determination procedure
However, some consumers do non ever pass through all five phases in buying merchandise such as a merchandise that use in day-to-day life, consumer will jump.
Harmonizing to Richard et al. , ( 2007 ) , the web is a tool to utilize in seeking information that may assist to work out a job. In the first phase ( job acknowledgment ) , it seems to be that nowadays people used hunt engine or web in order to happen solution that helps them to work out their job. For illustration, people who are seeking to lose weight will ever be conformable to an advert publicity a nutrient merchandise that is low Calories and low fat but tasty – typing cardinal words into a hunt engine can bring forth relevant consequences that illustrate the job.
The 2nd measure is information hunt, as we know that nowadays technologies become higher and higher improve, consumers can happen information that they would wish to cognize on web site such as Google or yokel. Information research and the procedure by which consumers gather information about goods or services before a purchase is make ( Shim et. Al 2001 ) .
Online shop seems to hold a good chance or advantage comparison to offline shop because consumer can reach them about the merchandise information 24 hour a twenty-four hours, 7 yearss a hebdomad. Alba et al. , ( 1997 ) stated that a cardinal difference between online and offline shopping is the ability of on-line consumers to obtain more information about their possible purchases. Furthermore, non merely is the information hunt quicker and easier when conducted online, it is besides cheaper ( Bakos 1997 )
The 3rd phase is rating of option ; consumers will garner their information and devising analyses in order to doing purchasing procedure. Internet helps consumers compare their information from merchandise that consumers choose in one page. Carphonewarehouse web site can be a good illustration ; this site allows you to take four Mobiles and demo them in the same page to do comparing easier. ( See Figure 3 )
Figure 3 A nomadic comparing page demoing test finding of fact of Mobiles selected from the hunt consequences page.
Fourth phase ( buy determination ) , it is a procedure that consumer make a choice goods or services. This phase consumers will take clip on purchasing determination depend on value, trade name, and quality of merchandise that they have to affect with its. For illustration, if consumer would wish to purchase shirt online, he or she might make up one’s mind to purchase in 10 to 30 minute because of the monetary value is inexpensive. On the other manus, if he or she would wish to purchase a auto online, this may take more than 3 to 4 yearss or may be a hebdomads or month to do a determination before purchasing. It could be state that a purchase determination depends on consumer engagement on good or services that they selected. However, on-line shopping shop have to do certain that they have unafraid consumer ‘s information in order to make trust, credibleness, and repute. The influences on the purpose to do cyberspace purchases and focal points on privateness, trustiness and experience as cardinal issues and any seller must work hard on these elements to set up its credibleness and repute in the on-line market place ( George, 2002 ) . Not merely degree of engagement and on-line security is of import, but Brand besides another major that make consumer would wish to purchase on their web site which research worker will explicate more on following portion.
The last phase is post-purchase rating ; this can get down every bit shortly as the dealing is completed with clients anticipating to have e-mail verification of the order within seconds and a client mention for order tracking intent ( Richard et al, 2007 ) . In this phase on-line consumer will portion their merchandise or service experience via societal communities. Internet can give on-line shopping shop a good or bad relationship depends on client ‘s satisfaction. If on-line consumer have satisfaction on merchandise and give a good feedback, this will construct long-run relationship with clients. But if they have a bad experience with on-line shopping shop or merchandise has some harm, this create a bad repute to net site and on-line consumer might give a negative feedback to societal communities.
“ Some merchandises, such as high-performance auto seem inherently affecting because of their complexness, hazard and cost, while others, such as toothpaste seem uninvolving by comparing because of their acquaintance, low hazard and low cost ”
Laakasonen ( 1994 )
We could be state that consumer ‘s degree of involvement depends on their single involvement, value, and demands of the goods, which attract of motivate them. If we perceive our self-image as being likely to be enhanced by purchase, so engagement can increase ( Venkatraman, 1998 ) . Furthermore, engagement is normally defined as the consumer ‘s personal involvement in purchasing or utilizing an point from a given merchandise field, an attack which nicely summarizes the personal, merchandise and situational constituents of the relationship ( Evan et al. 2009 ) . Therefore, on-line consumers seem to hold a high involve when they are doing purchasing online because the merchandise is untouchable and hazardous ( bogus merchandise ) . This makes on-line consumer pass more clip to seek information and website secure in seeking to avoid a bad purchase. Take jewelry maker merchandise for illustration ; people see it as a high-involvement point because of its high monetary value and epicurean image, on-line consumer have to pass more clip on seeking information, website credibleness, repute, provender back in order to avoid a bogus merchandise or bad quality. Therefore, we can state that consumer ‘s degree of engagement affect the determination doing procedure on purchasing merchandise. Boyd et al. , ( 2002 ) stated that purchaser web experience is to the full involved in doing determination to buy merchandise with high and low degree of engagement.
On-line Consumer Expectation
It seems to be that on-line consumer ‘s expect online shopping shops to be facilitated in their research for merchandise or service that suited for run intoing their demands and wants. A important development brought to concern by the cyberspace is to give drift to the seller ‘s aims switching from ‘helping the marketer to sell ‘ , to ‘helping the purchaser to purchase ‘ ( Richard 2007 ) . The more convenient online shop brand, the more on-line consumer would wish to come to their web site and would wish to purchase. Convenience is a major influence on on-line consumer behaviour ( Constantinindes 2004 ) . In add-on, with FAQ ( Frequently asked inquiries ) link helps on-line shopping shop to supply consumer an information or assistance them on clip. It would be mush impressed to clients if the site can supply existent clip aid to assist clients in covering with their process on clip ( Gommans et al. , 2001 )
Furthermore, on-line buyers ever experience uncertainness feeling while waiting for the expected merchandises that has been order online to be delivered, and does the merchandise run into consumer ‘s outlook upon the reaching, or else, will the on-line order being delivered as payment dealing is already deduct from the bank history ( Siyal and Barkat 2002 ) . Therefore, we could place into three classs that online consumer expect to hold from on-line shopping shops:
Convenient on utilizing web site.
Real clip aid to assist online consumer covering with their process
Online informations security such as Credit card figure
Method of payment
Factor that cans stimulus consumer purchasing determination is client satisfaction. Customer satisfaction can be the most of import ground for clients make up one’s minding to do a repetition purchases, and stating their friends about their satisfaction ( Palmer 2000 ) . Furthermore, on-line consumer ‘s experience, attitude towards online shopping, and demographic can be the factors that consequence their consumer purchasing determination. Four chief elements that influence on-line shoppers are practical experience, attitudes, demographic and personality traits ( Kwak et al. 2002 ) . Therefore, on-line consumers ‘ experience seem to be a key in order to do them reiterate purchase and stating their friends about their experience, web site secure, merchandise quality and so on. Virtual experience online impacts on future determination doing on the following cyberspace buying determination ( Bruke 2002 ) . Furthermore, Teo and Yu ( 2005 ) stated that on-line experience is one of the brilliant factors that affect clients ‘ willingness to buy online. With a good experience or client satisfaction, this make on-line consumer probably to portion their experience with others such as their friends and household or we call ‘word of oral cavity ‘ . Word of oral cavity can hold a dramatic consequence on consumers ‘ merchandise perceptual experiences and as offering ‘s market place public presentation ( Hoyer and Macinnis 2008 ) . This will assist online shopping shops better known and make a repute and credibleness through client because consumers already have information from a individual whom they trust. Online shopping shops non merely give online client a good service, quality of merchandise to do them fulfill, but on-line stores should besides give them equity. Oliver ( 1997 ) defines ‘equity ‘ as a ‘fairness, rightness or merit judgement that consumers make in mention to what other receives ‘ , it is besides considered as an of import determiner of satisfaction. Once on-line shopping shops can do client satisfaction, plus with just intervention, this will increase consumer ‘s trust and relationship.
Consumers ‘ demographic is another factors such as gender, age, and degree of instruction that utilizing an on-line buying. Adolescents seem to hold good educated on utilizing high engineering such as Internet or Computer. New coevals of age under 18 was being educated more and more about Internet public-service corporations and advanced engineerings such as computing machine ( GMID 2008 ) . Furthermore, it seems to be that ‘men ‘ like to do purchase determination quicker more than ‘women ‘ . Men favour to buy online, they are more likely to do their purchase determination based on catalogue channels ( Monsuwe et al. 2004 ) . Womans are seems to took a long clip on research information and long clip on doing purchasing determination because they do non desire to take a hazard on purchasing bogus merchandise or bad quality. Females are acute to look for relevant information online sing the merchandise of their involvement ; this was because females are lower hazard takers, when compared to males ( Meyers-Levy and Sternthal 1991 ) . However, researcher belief that female are more likely to seek on-line shopping more than male due to females like to travel shopping. The research of Goldsmith et al. , ( 1987 ) showed that more females were engaged in on-line buying, due to the fact that females bask shopping more than males.
Another factor that make on-line consumer would wish to buy goods or services seem to be on-line shopping shop. The more on-line shopping shop provide a assortment of merchandise, manner, stock available, good merchandise status and monetary value, the more on-line consumer would wish to come and do purchase. Availability of ware information affect e-satisfaction, one time clients have purpose to buy online. A good website design besides can act upon on-line consumer to see and promote them to seek merchandises in their web site. This will promote user in buying and lessen single attempt in doing buying determination ( Haque and Lohse 1999 ) . In add-on, Gommans et al. , ( 2003 ) stated that attractive website design must be associated with the mark visitants, such as assorted linguistic communications optional and colour, monetary value show. With these thing, it will actuate on-line consumer would wish to come to see their web site and do purchase determination. Harmonizing to Lim and Dubindky ( 2004 ) , merchandise images and link shows have a positive reaction to interact with cyberspace user than merely show of merchandise list.
A well website design will assist online consumers to minimise their shopping clip or seeking information signifier the cyberspace and do them hold a good experience happening merchandise due to website has supply a merchandise class for on-line shopper to help them to seek more easy. Peoples expected to have convenience sense of shopping via smooth pilotage from the site, many e-tailers supplying pilotage hunt for location of the points that located on the site itself ( Morrison and Roberts 1998 ) . Furthermore, Szymanski and Hise ( 2000 ) suggested that consumer who find shopping online is an effectual manner of store, as one time they experience from well-design pilotage sites that minimise their shopping clip or information seeking on cyberspace.
Therefore, Convenience, good website design, demographic, and client ‘s satisfaction seem to be a cardinal factor that can act upon on-line consumers would wish to do purchasing determination on on-line shopping shop. However, there still hold some key that research worker did non reference in this portion such as on-line security, which researcher will explicate more on the other portion.
We could state that two merchandise which have same design, quality, and same stuff should hold similar monetary value. However, that seems to be in a logic manner, but in existent universe, it seems non to be that because of Branding. Brand can associate with values in order to run into the consumer demand. As in Maslow ‘s hierarchy of demand, the regard demands are the thing that enables an person to measure consumer positively. Brand tickers, interior decorator apparels, and luxury points are served to convey in this feeling. Take Louis Vitton for case, we can see the same merchandise in the market but if there is a Louis Vitton trade name on the merchandise, the monetary value can be increase to 6-10 times more than the other which does non hold trade name even if it is the same design and same stuff. Rio del B. et Al. ( 2001 ) defined trade name as the set of associations and behaviors on the portion of a trade name ‘s clients, channel members, and parent corporations that permit the trade name to gain greater volume or greater borders than it could without the trade name name and that gives the trade name a strong, sustainable, and differential advantage over rivals. It seems to be that trade name can increase the value of merchandise and many people prefer and willing to buy a merchandise which already good known. Brand helps consumer to heighten their self-image of high value came from its trade name name. Janonis et Al, ( 2007 ) stated that Brand is closely related to the apprehension of consumer self-image that is the characteristics with which consumer identify themselves and the really same characteristics they would wish to be reflected by the chosen good and its trade name. Take Nike for illustration ; Nike ‘s trade name equity can be defined as the excess value embedded in is name, as perceived by the consumer, compared with an otherwise equal merchandise without the name ( Yoo et al. , 2000 ) .
Therefore, trade name image is an of import thing because it can increase merchandises ‘ value and shows consumer a credibleness of the trade name and merchandise. Palmer ( 2004 ) stated that to hold value, a trade name must hold consistence, cut down purchasers ‘ degree of perceived hazard, and offer a scope of functional and emotional properties that are of value to purchasers. We could state that trade name has a batch of advantages that can consequence consumer purchasing determination because it can do consumer experience good when they make purchase, it create credibleness to consumer, and it can assist consumer to different from other rivals merchandises.
Researcher can place the market channel into two chief countries that are on-line channel and offline channel. Offline channel or other name is ‘traditional shopping ‘ is a topographic point that purchaser and marketer meet each other, in add-on purchaser or consumer can see and touch merchandise before they doing purchasing determination. On the other manus, it seems to be that on-line shopping can non supply consumer in order to see or touch the existent merchandise before doing purchasing determination. Traditional shopping channels have the ability to interact between the two parties involved and therefore, physical interaction addition trustiness and cut down of perceived hazard on shopping purpose, when compared to online channels ( Casalo et al. 2007 ) .
Before we get to inside informations of online market industries, I would wish to explicate about online market foremost.
On-line market can split into 3 types, which are: 1 ) Online promenade, 2 ) Electronic auction, and 3 ) Electronic retail merchant.
Online promenade is similar to section shops where assortments of merchandise gather in one topographic point. Online promenade besides act like a section shop in an electronic field. A good illustration of online promenade can be Amazon and Argos.
Electronic auction ( e-auction ) is market mechanisms by which Sellerss have place an offer to sell their merchandise, and so purchasers will do commands consecutive and competitively until a concluding monetary value is reached. Bid auction site require participants to register as website user, the user is able to utilize the site for merchandising and purchasing about everything that is available on the site ( Lawson 2008 ) . The most celebrated and popular of electronic auction is eBay, where merchandise has been place into web site is available for purchaser to do auction on the merchandise they like.
Electronic retail merchant ( e-tailer ) is a store that retail merchant create web site to selling their ain merchandise in order to straight pass on with consumer. Furthermore, e-tailer give retail merchant an chance to demo its ain image and place in order to construct credibleness. A good illustration can be Tesco, ASDA, ASOS etc. which they provide merchandise ‘s information or item in order to actuate consumer determination on merchandise.
Recently Online Thai market still non celebrated due to Thai consumers still likes to purchase merchandise from offline channel or in section shop. Thai consumers like to buy a merchandise that they can see and touch. Furthermore, Thai consumers do non certain that on-line purchasing is unafraid because most of online retail merchants do non register in order to acquire license on making concern comparison to Western states and Thai consumers besides afraid of on-line payment secure. All of these make them experience hazardous ; therefore they do non desire to do on-line buying. The cardinal concerns that consumer have over the on-line buying tendencies are security of the privateness or fiscal which comparatively unsecure one time on-line payment has been made, such as recognition card fraud ( Harrdige 2006 ) . Furthermore, Roman and Cuestas ( 2008 ) stated that security on on-line dealing is need to be rigorous as to derive trust in the head of shoppers sing their on-line fiscal dealing brand with the site will be safe signifier unauthorised entree. In add-on, Thai online shopping shop did non supply any information item about consumer ‘s secure such as personal informations, or dealing. Fail to prolong system that provide run safe dealing online, lead to failure in forcing gross revenues on an on-line channel ( Spare 2002 ) . Lim and Dubinsky ( 2004 ) stated that on-line consumers tend to inspect e-tailer ‘s site sing security and privateness policy.
Furthermore, many online retail merchants still do non supply a map for consumer when they make purchase such as measure payment or do refund. Therefore, Thai consumer think it is excessively risk for them to do purchase because if they receive a bad quality, they can non do refund or alteration because they do non hold any grounds to demo that they have purchase merchandise from their web site. This brand Thai consumer prefer to purchase in shopping promenade because when they have any job, they can travel to alter or do refund. Traditional shops are holding tangibleness characteristic ; consumers know precisely where they can acquire in touch with, if there is any job traveling on from the buying order ( Urban et al. 2000 ) .
We could state that e-tailer seems to be the most unsecure comparison to offer auction and online shopping promenade due to both of them use ‘Paypal ‘ when on-line consumer make a payment. Paypal expertness in carry the on-line fiscal dealing affair, will build-in trust and perceived as security site in on-line buyers thought ( Agarwal and Skankar 2003 ) . Therefore, on-line consumers might experience safer when they make on-line payment via Paypal and this will make consumer ‘s trust and positive attitude when they use on-line web site. Part of this trust generated by the site, consequence in on-line consumer positive attitude and digesting relationship between buyers-sellers ( Urban et al. 2000 ) .
Therefore, we could be state that on-line Thai market have to concern more on consumer ‘s secure particularly e-tailer because if they can procure consumer ‘s information, it will make trust and good experience when they come to utilize their web site. This will make good repute and positive feedback and on-line consumers might come to their web site in order to buy merchandises.