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An Economic Model of the Consumers’ Online Shopping Utility and Factors Affecting on Online Shopping

by Afshan Azam, Fu Qiang
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International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 52 - Number 1
Year of Publication: 2012
Authors: Afshan Azam, Fu Qiang
10.5120/8166-1406

Afshan Azam, Fu Qiang . An Economic Model of the Consumers’ Online Shopping Utility and Factors Affecting on Online Shopping. International Journal of Computer Applications. 52, 1 ( August 2012), 24-31. DOI=10.5120/8166-1406

@article{ 10.5120/8166-1406,
author = { Afshan Azam, Fu Qiang },
title = { An Economic Model of the Consumers’ Online Shopping Utility and Factors Affecting on Online Shopping },
journal = { International Journal of Computer Applications },
issue_date = { August 2012 },
volume = { 52 },
number = { 1 },
month = { August },
year = { 2012 },
issn = { 0975-8887 },
pages = { 24-31 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume52/number1/8166-1406/ },
doi = { 10.5120/8166-1406 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2024-02-06T20:51:11.589552+05:30
%A Afshan Azam
%A Fu Qiang
%T An Economic Model of the Consumers’ Online Shopping Utility and Factors Affecting on Online Shopping
%J International Journal of Computer Applications
%@ 0975-8887
%V 52
%N 1
%P 24-31
%D 2012
%I Foundation of Computer Science (FCS), NY, USA
Abstract

This paper integrates extant literature on retailing and consumer choice to develop an economic model of consumer choice in which a consumer self-selects on-line shopping. Three important factors impacting consumer choice of on-line shopping: (1) the online shopping utility (2) the consumers' perceived product and service risks (Perceived Privacy Protection, Perceived Security Protection etc. ) and (3) consumer and e-vendors qualities (Consumer Disposition to trust, E-vendors' Positive Reputation etc. ) . Our model postulates that consumers derive utility from the online shopping experience and are affected by different factors (familiarity, disposition to trust, e-vendors' positive reputation, perceived privacy protection and perceived security protection). Consumers are also more likely to shop on-line from familiar websites and e-vendors than lesser known ones. However, they are less likely to shop on-line from e-vendors or website that does not have explicit privacy and security measures. Empirical verification of the model is carried out using a survey method approach and the results gave support to the postulations based on our theoretical model. Limitations and directions for future research are also discussed.

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Index Terms

Computer Science
Information Sciences

Keywords

Economic model Consumer utility Consumer surplus Consumer self-selection Perceived risk e-commerce

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