Online Shopping Acceptance Model - a Critical Survey of Consumer Factors in Online Shopping

Article excerpt

ABATRACT

Since the late 1990s, online shopping has taken off as an increasing number of consumers purchase increasingly diversified products on the Internet. Given that how to attract and retain consumers is critical to the success of online retailers, research on the antecedents of consumer acceptance of online shopping has attracted widespread attention. There has yet to be a holistic view of online shopping acceptance from the perspective of consumers. In this research, we conducted an extensive survey of extant related studies and synthesized their findings into a reference model called OSAM (Online Shopping Acceptance Model) to explain consumer acceptance of online shopping. Our literature survey reveals that a myriad of factors have been examined in the context of online shopping and mixed results on those factors have been reported. The proposed model helps reconcile conflicting findings, discover recent trends in this line of research, and shed light on future research directions.

Keywords: online shopping, acceptance, consumer behavior, shopping intention, e-commerce.

1. A Consumer-oriented View of Online Shopping

Online shopping is becoming increasingly popular. Online retail sales are estimated to grow from $172 billion in 2005 to $329 billion in 2010 [Johnson 2005]. There are 32 countries worldwide with the Internet penetration rate higher than 50% (http://www.internetworldstats.com). As of April 2006, 73% of American adults are Internet users (http://www.pewinternet.org). Moreover, Internet users' ability to shop online has significantly improved from 16% to 32% since March 2001. The potential benefits of online shopping for consumers include convenience, various selection, low price, original services, personal attention, and easy access to information, among others.

The proliferation of online shopping has stimulated widespread research aimed at attracting and retaining consumers from either a consumer- or a technology-oriented view [Jarvenpaa and Todd 1997]. The consumer-oriented view focuses on consumers' salient beliefs about online shopping. Such beliefs may influence purchase channel selection. For example, online consumer behavior has been examined from the perspectives of consumer demographics [Brown et al. 2003; Chau et al. 2002; Korgaonkar et al. 2004; Li et al. 1999; O'Keefe et al. 2000; Park and Jun 2003; Park et al. 2004; Stafford et al. 2004], cognitive/psychological characteristics [Hoffman and Novak 1996; Huang 2003; Lynch and Beck 2001; Novak et al. 2000; Wolfinbarger and Gilly 2001; Xia 2002], perceptions of risks and benefits toward online shopping [Bhatnagar and Ghose 2004a; Bhatnagar and Ghose 2004b; Bhatnagar et al. 2000; Featherman and Pavlou 2003; Garbarino and Strabilevitz 2004; Huang et al. 2004; Jarvenpaa and Todd 1997; Jarvenpaa and Tractinsky 1999; Jarvenpaa et al. 1999; Joines et al. 2003; Kolsaker et al. 2004; Liang and Jin-Shiang 1998; Liao and Cheung 2001; Park et al. 2004; Pavlou 2003; Pires et al. 2004; Solomon 1999], shopping motivation [Childers et al. 2001; Johnson et al. 2004; Novak et al. 2000; Wolfinbarger and Gilly 2001], and shopping orientation [Donthu and Garcia 1999; Korgaonkar and Wolin 1999; Li et al. 1999; Swaminathan et al. 1999]. The technology-oriented view, on the other hand, explains and predicts consumer acceptance of online shopping by examining technical specifications of an online store. These specifications include user interface features, Web site content and design, and system usability. The above two views do not contradict but rather reinforce each other. Because the success of an electronic market largely depends on consumers' willingness to accept it, we adopt the consumer-oriented view of online shopping in this study.

As the competition in e-commerce is intensified, it becomes more important for online retailers to understand the antecedents of consumer acceptance of online shopping. Such knowledge is essential to customer relationship management, which has been recognized as an effective business strategy to achieve success in the electronic market. …