1.

Literature Review:
Understanding where and how Internet retail sales fit into the retail market requires an
examination of several areas of literature. This review of literature began with
examining the retailing and e-tailing. The second part of the literature review
examined current use of the Internet and the Internet users’ profile. The third area of
the literature review builds a research framework. Then, research hypotheses are
developed.
(Krugman, 1991) ; The Nobel Prize winner of 2008 argued that we, as a society,
moved on to globalization 2.0. This is due to the fact that information and
communication technologies (ICT) are much more developed than in the early days.
Because of these developments people can get information much easier, cheaper and
faster. This shifts the whole economy to a new kind of economy; globalization 2.0 or
the information (internet) economy. Some economists (Ghosh, 1999) state that firms
can no longer avoid the internet.
(Davis, 1993); in his study reveals that we build up such a framework based on
previous research on consumer adoption of new self-service technologies and Internet
shopping systems. The research suggests that consumers’ perception toward Internet
shopping first depends on the direct effects of relevant online shopping features.
(Butler & Peppard, 1998; Malone, Yates, & Benjamin, 1997; Yoffie, 1996); This
new era is created by a set of evolvements. These evolvements are, discussed by many
authors and include rapid technological convergence, greater connectivity, enhanced
interactive capacity and increased organizational co-ordination capability. Computers
and the internet are the aids for consumers to participate in this information economy.
(Angehrn, 1997); Internet as a medium does not only provide information but can
also be used to communicate and purchase products. The internet is an environment
for conducting a transaction and a channel to deliver the product or service to the
buyer.
(Butler & Peppard, 1998; Gupta, Su, & Walter, 2004; Häubl & Trifts, 2000) ;
There are various studies that show the general behaviour of consumers when they are
searching and buying products. Another study (Li, Kuo, & Rusell, 1999) shows the
attitude of consumers towards particular channels.
(Lohse, Bellman, & Johnson, 2000); The growing e-commerce and internet as
information-channel makes it necessary for companies to know the behaviour of their
customers on the internet. Marketers could perform better if they understand and
know their customers well. It is necessary for marketers to understand the decisions
consumers make and how online consumers go through their decision process.
(Benedict et al, 2001);in his study on perceptions towards online shopping reveals
that perceptions toward online shopping and intention to shop online are not only
affected by ease of use, usefulness, and enjoyment, but also by exogenous factors like
consumer traits, situational factors, product characteristics, previous online shopping
experiences, and trust in online shopping.
(Reibstein, 2002; Heijden van der, Verhagen, & Creemers, 2003); it is examined
only the ‘purchase’ stage of consumers during their entire buying decision process
(BDP).There is however no research done about the channels consumers use during a
particular stage of their BDP. This study will contribute to getting more insights in
what channels consumers use when they are in a particular stage of the BDP.
Regarding this topic the contribution of this study will lie in the fact that the
behaviour of consumers on the internet will be paired with the Theory of Planned
Behaviour and the Technology Acceptance Model regarding using certain internet
channels. With this connection it is possible to know if particular consumers use
certain channels.
(RoberLaRose and Matthew s. Eastin, 2002);This study reconceptualized
unregulated buying behaviors as the result of deficient self-regulation using
mechanism proposed in social cognitive theory.
(George, 2002); This is a study about pairing this behaviour with the Theory of
Planned Behaviour (Ajzen, 1991) and the Technology Acceptance Model (Davis,
1986). But this connection was only regarding privacy and trust.
(Menon and Kahn, (2002); Childers et al., (2001); Mathwick et al.,
(2001));concluded that Online shopping features can be either consumers’ perceptions
of functional and utilitarian dimensions, like “ease of use” and “usefulness”, or their
Perception of hedonic dimensions and emotions like “enjoyment by including both
hedonic dimensions and utilitarian, aspects from the consumer behavior literature, as
well as the information systems or technology literature are integrated in our
framework. Burke et al., (2002) In addition to these relevant online shopping
attributes, also exogenic factors are considered that moderate the relationships
between the core constructs of the framework.
(GfK Group, 2002); shows that the number of online shoppers in six key European
markets has risen from 27.7 percent to 31.4 percent last year. This means that 59
million Europeans use the Internet regularly for shopping intentions. However, not
only does the number of online shoppers grows, the level of their purchases also
increases over-proportionally
(Reinhardt and Passariello, 2002); In the US, says that online sales are forecasted to
exceed $36 billion in 2002, and raise annually by 20.9 percent to reach $81 billion in
2006. Europeans are spending more money online as well. Whereas combined
revenues for Amazon.com’s European operations grew at more than 70 percent
annually in each of the past three quarters, topping $218 million. While these figures
show that a large number of consumers in the US and Europe frequently use the
Internet for shopping purposes, the reason is not clear what drives them to shop online
and whether these numbers could be even
Dabholkar and Bagozzi et al, (2002) O’Cass and Fenech, (2002); Childers et al.,
(2001); Davis, (1993);their study reveals that if more attractive online stores were
developed. This elevates the issue of examining what factors affect consumers to shop
online. Therefore, a structure is needed to structure the complex system of effects of
these different factors, and develop anthorough understanding of consumers’
perceptions toward Internet shopping and their intentions to shop online.
(Na Li and Ping Zhang, 2002);The current status of studies of online shopping
attitudes and behavior is investigated through an analysis of 35 empirical articles
found in nine primary Information Systems (IS) journals and three major IS
conference proceedings.
(Horrigan, 2002); In 2002 about 53 percent of the American internet users used
the internet to make a purchase.
(Peterson & Merino, 2003); As stated before many studies investigated the overall
behaviour of consumers on the internet. On the contrary there are studies that
investigated the particular behaviour when searching for information and buying
products online.
(Dellarocas, 2003); With online shopping consumers can buy products without an
intermediary service. The changing role of the internet and the corresponding
websites has a significant impact on companies. Consumers can make their opinions
and experiences about products available on the internet.
(Rick L. Andrews, Imran S. Currim, 2004);This study uses information from both
traditional supermarket scanners and an online supermarket to test expected
differences in choice behaviours of such customers.
(Thompson S.H. Teo, Pien Wang, Chang Hong Leong, 2004); Building upon
Transaction Cost Economics (TCE) theory, this paper hypothesises that consumers'
transaction cost of online shopping is affected by six antecedents: product uncertainty,
behavioural uncertainty, convenience, economic utility, dependability, and asset
specificity. The implications of the results are discussed.
(Gurvinder S Shergill, Zhaobin Chen, 2005); This paper is part of larger study, and
focuses on factors which online New Zealand buyers keep in mind while shopping
online. It also investigates how different types of online buyers perceive websites
differently. This research found that website design, website reliability/fulfillment,
website customer service and website security/privacy are the four dominant factors
which influence consumer perceptions of online purchasing.
(Blackwell, Miniard, & Engel, 2006); These studies are all about marginalization.
However another theory suggests (Lehmann, 1999) a broader perspective and
building on more general theories is needed. This broader perspective can contribute
more in a problem-oriented field such as marketing. In this research a more general
context of the consumer behaviour is used. This study uses the model of consumer’s
buying decision process.
(Yoo-KyoungSeock and Lauren R. Bailey, 2007); this study investigated college
students’ shopping orientations, and examined the relationships between their
shopping orientations and searches for information about and purchases of apparel
products online and the differences between male and female students in their
shopping orientations This study provided suggestions for apparel e-tailors to develop
effective marketing strategies to reach their target market, for consumer educators and
for educators in the retail merchandizing area to prepare their students for future
careers.

(Razorfish, 2008) ; Another study showed that 61 percent of global internet users take
internet reviews about products into account when they are in their buying decision
process. These results mean that consumers are using the internet ore and more during
their buying decision process. It is therefore important for companies to gain more
knowledge about the behaviour of consumers on the internet.
(Trendstream, 2009); In 2009 85 percent of global internet users had searched for
information about products.
(D. Veena Parboteeah and Joseph S. Valacich, John D. Wells, 2009); this paper
reports on two studies that examine how variations in a website influence online
impulse buying. The results reveal some relevant insights about this phenomenon.
Specifically, although many participants had the urge to buy impulsively, regardless of
website quality, this behavior’s likelihood and magnitude was directly influenced by
varying the quality of task relevant and mood-relevant cues. The implications of the
results for both future research and the design of human-computer interfaces are
discussed.
(Nielsen, 2010);In 2010 about 85 percent of American consumers have purchased a
product on the internet and these numbers are continuing to grow.The rise of the era
of the information economy has an impact on many aspects of people’s lives. It has
not only influenced the social level but also the business-, political- and economic
levels. Every aspect of life has changed with the emergence of the information
economy.
(Reuters, 2010);With the introduction of the personal computer a whole new
component entered the lives of many. When later on the internet was invented the way
people live changed indefinitely. At first the internet was only used for
communication purposes; sending out information and gathering information. In 2010,
about 550 billion documents can be found on the internet. Those documents are
searched by more than 2 billion internet users in 2010. These facts indicate that the
internet increasingly influences the way people live. The internet changed the way of
live.
(Oracle ATC Web Commerce, 2010);In July 2009, ATG (acquired by Oracle in 2010)
commissioned a consumer survey to examine the differences in attitudes toward
online shopping across the U.K., Spain, Germany, France, and Benelux (Belgium, the
Netherlands, and Luxembourg). The study asked more than 6,500 consumers about
their satisfaction, likes and dislikes, common frustrations, and spending habits related
to online shopping. The research shows marked differences in buying behaviors
among the countries surveyed and highlights clear areas where retailers can improve
the online shopping experience they offer to customers.
(Guo Jun, Noor IsmawatiJaafar, 2011);Online shopping provides a good example of
the business revolution. In China, e-commerce is currently experiencing a period of
rapid development; the large number of Internet users provides a good foundation for
the expansion of the online shopping market. In this study, perceived usability,
perceived security, perceived privacy, perceived after-sales service, perceived
marketing mix, and perceived reputation were used for analysis.

(Wen-Chin Tsao∗ and Ya-Ling Tseng, 2011); study is mainly to explore the influence

of e-SQ on website brand equity and to further investigate that of brand equity on
perceived risk and customer value. A structural equation model is developed to test
the casual effects between those constructs. The managerial implications for
marketing managers and limitations are discussed.
(John D. Wells; Veena Parboteeah and Joseph S. Valacich, 2011); This paper
reports on two empirical studies that examine the interplay between a consumer’s
inherent impulsiveness to buy and website quality. Specifically, consistent with past
online impulse buying research, website quality manifests as an environmental cue
that directly influences the likelihood that a consumer will experience an urge to buy
impulsively. Further, highly impulsive consumers can be both positively and
negatively influenced by varying degrees of website quality.

(SajjadNazir;ArsalanTayyab; Aziz Sajid;Haroonur Rashid;IrumJaved,