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INTERNET SHOPPING AND ITS IMPACT ON
CONSUMER BEHAVIOUR

MSc INTERNATIONAL BUSINESS

By

Fayu Zheng

2006

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ACKNOWLEDGEMENTS

This research is the final dissertation for MSc International Business at the University of Nottingham, during the summer term of 2006.

Firstly, I would like to thank Vicky Story for her invaluable support, guidance and availability throughout the course of this project.

In addition, I would like to thank all the participants for sparing the time to take part in the questionnaire.

Finally, I would like to express my love and appreciation to my parents, Juxiu Zheng and Yangfang Wang, and also my fiancée Wei Jiang for their supports in the past few years.

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ABSTRACT

The main goal of the paper is to obtain quantitative evidence describing the actuality of internet shopping in the case of the UK and China in order to explain the development of internet shopping and its impact on consumer behaviour. The paper builds on the relevant literature and at the same time examines consumer behaviour by questionnaires. Furthermore, the future development of internet shopping will be measured, and a deep comparison of consumer behaviour between these two countries is also analysed. To reach those objectives a co-integration analysis and quantitative research methods are used to identify all aspect of the internet shopping and impact on consumer behaviour. The data results obtained revealed in the paper support the research questions that including recent trends and various issues of in internet shopping, and principal factors for consumer behaviour.

The paper, therefore, provides information for analysing these research questions to conclude the status of internet shopping and its impact of consumer behaviour among UK and China consumers. More specifically, the empirical results suggest how the Ecommerce company make marketing strategies according the research data and analysing results.

Keywords: Internet shopping, Consumer behaviour, E-commerce, Consumer purchase decision making process.

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TABLE OF CONTENTS

Chapter 1

Introduction

8

1.1

Overview

8

1.2

Internet Shopping Development

9

1.3

Background of Book Industry

10

1.3.1 Internet Shopping in the Book Industry

10

1.3.2 Difference between Online/Offline Bookstores

11

1.4

Aims and Objectives

12

1.5

The Framework of Study

14

Literature Review

16

Traditional Shopping Behaviour

17

2.1.1 Overview

17

2.1.2 Definition

17

2.1.3 Perspectives

18

2.1.4 Factors

19

Internet Shopping

20

2.2.1 Nature of Internet Shopping

21

2.2.2 E-commerce Website

25

2.2.3 Online Security, Privacy, Trust and Trustworthiness

28

Online Consumer Behaviours

33

2.3.1 Background

33

2.3.2 Shopping Motivation

37

Chapter 2
2.1

2.2

2.3

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2.3.3 Decision Making Process

39

Chapter 3

Research Methodology

51

3.1

Participants & Apparatus

51

3.2

Research Methods

51

3.3

Method Selection

52

3.4

Questionnaire Design

56

Results Analysis and Discussion

65

Detailed Analysis of Results

65

Chapter 5

Conclusion

93

Chapter 6

References

95

Appendix I

Questionnaire

104

Chapter 4
4.1

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TABLES AND FIGURES

Table 1. Comparison of Qualitative and Quantitative Research Methods. Table 2. Which features do you value when visiting an e-commerce website? Table 3. Do you think the following need to be improved for e-commerce websites?

Figure 1. An Integrative Model of Consumer Trust in Internet Shopping. Figure 2. Research Model of Consumers’ Online Shopping Attitudes and Behaviours Figure 3. The consumer decision making process and its five stages. Figure 4. Results from UIE.

Figure 5 & 6 – How many years experience of using Internet? Figure 7 & 8 – How often do you use the Internet for the following purpose?...
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