Discuss about the Impact of Online Shopping on in-Store Shopping.
The coming of internet or information technology has made carrying out of many assignments in our lives easier and efficient compared to before the advent of technology. For example, before the advent of technology it was necessary for one to walk physically to perform some window shopping or even actual shopping. This consumed a lot of time and energy. Today, thanks to technology, people can window shop and even order for goods online. The ordered goods can also be delivered up to the door step of the buyer upon request of the same online. The research study at hand focuses on establishing the impact of online shopping on traditional ways of shopping and also seeks to establish customers’ preference when it comes to the two methods of shopping in London city.
It is obvious that in the current times people are cautious about time and would want to save every single second of it. In regard to this aspect many people would want to consider proximity of their residents to shopping malls or markets. They also consider factors such as accessibility and safety. For example an individual who have a busy schedule or does not have luxury of time would rather do online shopping than traditional shopping due to time constraints. On the other hand, the other person might consider traditional shopping in case he or she would need personal assessment of the good or service.
In store shopping/ traditional shopping
In store shopping which is also known as traditional shopping may be encouraged by such factors as wanting to know more about a given product which will prompt the buyers’ presence. According to (Mindali & Salomon, 2007), customers who go to the shops physically in most cases would want to know the aspects of the product such as size, type and quality. He also asserts that family size too do affect the preference of way of shopping. He argues that large families would rather do online shopping and get their goods delivered to their homes while small families would find it leisure to go shopping together. On the same note, there are cases where young families with young kids preferring online shopping while old families with older children preferring going shopping physically with their children (Mindali & Salomon, 2007).
Another survey done on online shopping by (Teo, 2006) found that majority of customers are nowadays running away from in store shopping and embracing online shopping claiming that in-store shopping is always tedious and consumes a lot of time. From another perspective, a research by (Ramus & Nielsen, 2005) conducted to establish the extent to which information and knowledge about in-store shopping has spread, reported that in-store shopping is taken by many customers as a social affair; social affair that allows members of different families and friends to come together and interact. According to (Wiig & Smith, 2008), environmental and economic factors were found to be playing a major role in influencing the shopping patterns of women earning low income in the US.
Initially internet was just seen by the business world as an electronic and a communication tool rather than a social platform that would later revamp the business sector (Leiner & Clark, 2009) . Since the inception of internet in the business world, it can be said without an iota of doubt that the technology has redefined the way business is run today in the world business (Boyer. & Hult, 2005). Internet has not only facilitated the shopping process for customers but has also been embraced by many business organizations as a platform where they can market their products and services. This the businesses have done through creation of social media platforms such as facebook, whattsapp, instagram, websites and many others. It is on these social sites that customers are able to log in and get the information about the products that they need. Unlike in-store shopping, in online shopping one is not able to physically assess the product but can only see them in form of clear pictures (Huang & Oppewal, 2006) . From various business organizations’ website, buyers are able to access information about the products that they stock. Though majority has been endeared to online shopping, they get discouraged by the high charges of delivery which make the good appear expensive at the end of the day. To add on, it depends on availability of network, and also excludes social enjoyment that comes along with traditional shopping. Despite those reasons, (Boyer & Hult, 2005) conclude that it has made shopping easy.
- Has online shopping completely replaced in-store shopping in London city?
- What are the shoppers’ opinions on online shopping versus in-store shopping?
- What are some of the factors customers consider before choosing a shopping method?
- Is there significant difference in the number of people who do online shopping compared to those who do in-store shopping?
The following is the main research hypothesis of the research project.
H0: There is no significant effect that online shopping has had on traditional or in-store shopping in the city of London.
H1: There is a significant effect that online shopping has had on traditional or in-store shopping in the city of London.
Operational Definitions and Measurements
This research survey will be done in the city of London and will involve who reside in London. For the results to be unbiased, the study will be limited to those customers who own computers or smartphones or any gadget that can be used to access internet services anywhere and at any time. There will be a mix of those who reside just near the city and those who reside in the outskirts of the city.
This research study will involve a sample of 160 customers residing in London city and its outskirts. The sample will employ both simple random sampling and purposive sampling. Simple random sampling will be used since it gives each and every one an equal chance of being selected in the sample. Random sampling or sampling by chance will be used to sample 600 people after which a purposive sampling will be used to only identify those customers who own either a computer or a smartphone that can be used to access internet services. Due to the high number of those who own smartphones and computers in London, a higher proportion of those who own the devices are bound to be many. A proportion of three hundred and twenty one people will be identified after which systematic sampling will be used to identify every second person so as to have a sample of 160 respondents.
Method of analysis
This research study will be employing both descriptive and inferential statistics. Descriptive statistics will be used to establish the proportion of respondents that prefer online shopping and those who prefer in-store shopping. Inferential statistics will be used to determine whether there is a relationship between those who prefer online shopping and those who prefer in-store shopping. A cross-relationship will also be done on the factors that that endear customers to prefer the modes of shopping they prefer. A regression analysis will be carried out to determine the main factors that influence customers’ decision on the mode of shopping. Statistical software SPSS and excel will be used to analyze the data collected.
This research will take a period of four weeks. The first week will involve preparation of the survey tool which is mainly questionnaire. In the following week the research will embark on a serious data collection that will start at 9.00 am and end at 4.00 pm in the afternoon. During the administration of the questionnaires, informed consent will be sought from the would be respondents. The third week will be dedicated to sorting, organizing and entering data into the SPSS software ready for analysis. The fourth week will be for data analysis and the compilation of the research report.
From the literature review and reasoning from the logic, it is expected that the result of this study will find out that a good percentage of the customers prefer online shopping to in-store shopping. The reasons given for the preference are expected to be that online shopping saves the time taken doing the shopping. To add on, with online shopping people can order for delivery of goods to the door step of the customer. The customers who will say that they prefer in-store shopping will have the reasons such as the enjoyment that comes with window shopping with the family members and even meeting with friends.
This research study will be an important resource to the customers and business organizations as the findings of this study will help them understand the level at which customers either value online or in-store shopping. This will help business organizations to enlarge their online platform so as to accommodate the many people who are online shopping enthusiasts. It was the observation of the result proposal that government in London encourage establishment of shopping malls not only in the London city but also in the far flung areas.
Boyer., K. K., & Hult, G. T. (2005). Extending the supply chain: Integrating operations and marketing in the online grocery . Journal of operations management, 642-661.
Huang, Y., & Oppewal, H. (2006). Why consumers hesitate to shop online: An experimental choice analysis of grocery shopping and the role of delivery fees. international journal of retail and distribution management, 4, 334-353.
Leiner, B. M., & Clark. (2009). A brief history of the internet. . The Internet Society.
Mindali, I. R., & Salomon, I. (2007). The impacts of e?retail on the choice of shopping trips and delivery. Transportation research.
Punakivi, M., & Saranen, J. (2001). Identifying the success factors in e?grocery home delivery. International Journal of Retail & Distribution Management., 4, 156-163.
Teo, T. S. (2006). To buy or not to buy online: Adopters and non?adopters of online shopping in Singapore. Behavior and information technology.