CHAPTER-2

REVIEW OF LITRETURE

A literature review is a select analysis of existing research which is relevant to your topic,showing
how it relates to your investigation. It explains and justifies how your investigationmay help answer
some of the questions or gaps in this area of research.A literature review is not a straightforward
summary of everything you have read on the topicand it is not a chronological description of what
was discovered in your field.

2.1 NATIONAL REVIEW OF LITREATURE. Rajeev Kamineni (2004)

in his study finds that World Wide Web can changehumanbehaviour and human interactions to a
very large extent. Web based shoppingbehaviour is one major example to point out the trends in
this direction. This study isof a very exploratory nature and it intends to establish the differences
between severalweb-based shoppers from different parts of the world. Several critical
factorsassociated with online shopping behaviour have been explored. A cross cultural dataset has
been collected and an illustrative description of the shoppers has beenprovided. As a final step the
cross cultural differences between several shoppersexplored.

ArchanaShrivastava, UjwalLanjewar, (2011)

in online buying, the rate of diffusionandadoption of the online buying amongst consumers is still
relatively low in India. Inview of above problem an empirical study of online buying behavior was
undertaken.Based on literature review, four predominant psychographic parameters
namelyattitude, motivation, personality and trust were studied with respect to online buying.The
online buying decision process models based on all the four parameters weredesigned after
statistical analysis. These models were integrated with businessintelligence, knowledge
management and data mining to design Behavioral BusinessIntelligence framework with a cohesive
view of online buyer behavior.For better understanding the factors of internet and consumer
shopping behaviourstowards internet shopping, this chapter would provide academic research
reviews and

relative ideas expressed in the literature that associated with this subject. Furthermore,a number of
hypotheses will be tested to answer the research questions that mentionedalready in the
introduction. Due to the recent research shows that internet shoppingbecomes a full and effective
business model (Black, 2005), therefore there are severalstudies that already investigated more or
less related on internet shopping andconsumer behaviour. In the following chapter, some point of
view will be taken fromliteratures, and needs careful review to achieve them as the basis of the
subsequentresearch investigation.

J.SINHA 2010

The number of people engaged in various online activities is increasingevery day. While the number
of online shoppers is increasing, it is not proportional tothat of brick-and-mortar shoppers. Research
has tried to explain the dismalperformance of online shopping as compared to the physical
shopping format.Reasons for the lower level of Internet sales have been cited as being perceived
risk incarrying out an online transaction, socio-psychological factors (Like - influence offriends and
relatives) and infrastructural limitations (Availability of Internet,computers, credit-cards, cyber laws
etc.). Under the purview of aforementionedfactors this study tried understanding the online
shopping behavior of
Indianconsumers. Socio-psychological factors and infrastructure have been found influentialfactors
while the perceived risk surprisingly is not significant as a whole but at genderlevel there was
significant difference between the online behavior of male and femaledue to risk perception.

Lal

studied the determinants of adoption of Information Technology (IT) inIndia. The study was based
on 59 electrical and electronic goods manufacturingfirmssituated in NOIDA. Semi-structured
questionnaire were used to collect the data.The study examined the factors influencing the degree
of IT adoption by firms. Thefactors included are entrepreneur characteristics measured by
entrepreneur’squalification, importance given to market share, R&D and quality consciousness,firm’s
international orientation factors measured by import and export intensity, workforce skill and firm
size. The sample firms were divided into four categoriesdepending on their intensity of IT. 2.2
INTERNATIONAL REVIEW OF

LITREATURE

E-Business probably began with electronic data interchange in the 1960s (Zwass, 1996).However,
(Melao, 2008) suggests that it was only in the 1990s, primarily via the Internet, that e-Business has
emerged as a core feature of many organizations. In his opinion, the hope was thate-Business would
revolutionize the ways in which organizations interact with customers,employees, suppliers and
partners. Some saw e- Business as part of a recipe to stay competitive inthe global economy.

Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan,MoezLimayem,(2002)

The topic of online consumer behavior has been examined undervariouscontexts over the years.
Although researchers from a variety of business disciplines havemade significant progress over the
past few years, the scope of these studies is rather broad, thestudies appear relatively fragmented
and no unifying theoretical model is found in this researcharea. In view of this, provide an exhaustive
review of the literature and propose a researchframework with three key building blocks (intention,
adoption, and continuance) so as to analyzethe online consumer behavior in a systematic way. This
proposed framework not only provides uswith a cohesive view of online consumer behavior, but also
serves as a salient guideline forresearchers in this area.
Burke, R.R. (2002),

Trust is a key factor that determines the success of Business toConsumer(B2C) e-commerce
transactions. Previous researchers have identified several critical factors thatinfluence trust in the
context of online shopping. This research focuses on available securitymeasures which assure online
shopper

s safety and great sales promotions and online deals whichstimulate customers to shop online.

Abel Stephen (2003)

in his paper represents the findings of research studies that address e-commercedesign and associated
consumer behavior. The innovation of e-commerce has affected not only themarketplace through the
facilitation of the exchange of goods and services, but also human behaviorin response to the
mechanisms of online services. Researchers have identified and hypothesized onrelevant subject matters
ranging from Web usability, marketing channels and other factors influencingonline buying behavior.
Though researchers have focused on what appear different aspects of onlinebuying behavior, their
studies may be shown to be interrelated and interdependent, even to the extentof revealing constructs
upon which e-commerce, in terms of future design and
research, could be built.

Balasubramanian, S., Konana, P. and Menon, N.M. (2003),

In this environment,sometraditional service quality dimensions that determine customer

satisfaction, such asthe

physical appearance of facilities, employees, and equipment, and employees

responsiveness and empathy are unobservable. In contrast, trust may play a central role here in
enhancing customersatisfaction. Model trust as an endogenously formed entity that ultimately
impacts customersatisfaction, and we elucidate the linkages between trust and other factors related
to the performanceof the online service provider and to the service environment.

The classic consumer purchasing decision-making theory can be characterized as acontinuum

extending from routine problem-solving behaviors, through to limited problem-solving behaviors
and then towards extensive problem-solving behaviors [Schiff man et al.,2001].The traditional
framework for analysis of the buyer decision process is a five-step model.Given the model, the
consumer progresses firstly from a state of felt deprivation (problemrecognition), to the search for
information on problem solutions. The information gatheredprovides the basis for the evaluation of
alternatives. Finally, post-purchase behavior is criticalin the marketing perspective, as it eventually
affects consumers’ perception ofsatisfaction/dissatisfaction with the product/service.This classic five
stage model comprises the essence of consumer behavior under mostcontexts. Nevertheless, the
management of marketing issues at each stage in the virtualenvironment has to be resolved by
individual E-marketers. Peterson et al. [1997] commentedthat it is an early stage in Internet
development in terms of building an appropriate dedicatedmodel of consumer buying behavior.
Decision sequences will be influenced by the startingpoint of the consumer, the relevant market
structures and the characteristics of the product inquestion. Consumers' attitude towards online
shopping is a prominent factor affecting actualbuying behavior. (Source: Jarvenpaa Journal of
Electronic Commerce Research, VOL. 6, andNO.2, 2005)Todd [1997] proposed a model of attitudes
and shopping intention towards Internet shoppingin general. The model included several indicators,
belonging to four major categories; thevalue of the product, the shopping experience, the quality of
service offered by the websiteand the risk perceptions of Internet retail shopping. In the research
conducted by Vellido etal. [2000], nine factors associated with users' perception of online shopping
were extracted.Among those factors the risk perception of users was demonstrated to be the
maindiscriminator between people buying online and people not buying online.Other discriminating
factors were; control over, and convenience of, the shopping process, affordability of merchandise,
customer service and ease of use of the shopping site. Inanother study, Jarvenpaa et al. [2000]
tested a model of consumer attitude towards specificwebbase stores, in which perceptions of the
store's reputation and size were assumed to affectconsumer trust of the retailer. The level of trust
was positively related to the attitude towardthe store, and inversely related to the perception of the
risks involved in buying from thatstore. Jarvenpaa et al. [2000] concluded that the

attitude and the risk perception affected theconsumer's intention to buy from the store.Consumer
risk perceptions and concerns regarding online shopping are mainly related toaspects involving the
privacy and security of personal information, the security of onlinetransaction systems and the
uncertainty of product quality. Trust is interwoven with risk[McAllister, 1995]. One of the
consequences of trust is that it reduces the