Download Contemporary Logistics Analysis of Internet Consumer Behavior and Enterprise Strategies in China

Contemporary Logistics 14 (2014) 1838-739X
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Contemporary Logistics
journal homepage: www.seiofbluemountain.com
Analysis of Internet Consumer Behavior and Enterprise Strategies
in China
Zhonghua WU1, 2,
1. School of Business Administration, Jiangxi University of Finance and Economics, 330013, P.R.China
2. Research Center of Cluster and Enterprise Development, Jiangxi University of Finance and Economics, 330013,
P.R.China
KEYWORDS
ABSTRACT
Online shopping,
Network marketing,
Psychology and behavior of
consumer
Firstly, from the online shopping consumers’ angles, analyzed their psychological
characteristics, behavioral characteristics and motivations of shopping; Secondly, under the
background of financial crisis, analyzed the trend of Chinese “online shopping”; Again, from
the view of network marketing, based on the analysis of consumer online shopping,
discussed the future challenges of network marketing; Finally, based on consumer
psychology and behavior of online shopping, network marketing studies, proposed
countermeasures network enterprises and businesses can take.
© ST. PLUM-BLOSSOM PRESS PTY LTD
1 Introduction
The 21st century is an important period that Chinese network economy rapidly developed, network change the shopping patterns of
Chinese vast people. Network consumers become a new consumer group, has different characteristics from consumer groups of
traditional market. Online shopping as a new business model is very different from the traditional shopping patterns. This thesis,
according to theoretical studies at home and abroad, focusing on analysis of online shopping consumers’ psychology and behavior,
predict network marketing may face the challenge and response policy of network corporate and business in the context of the
financial crisis and the future trend that e-commerce become more popular.
2 Chinese On-line Consumer Psychology and Behavior Analysis
2.1 Chinese on-line consumer psychology analysis
The web site in China is about 677,500. The challenges faced by online businesses is to attract more eyeballs in the growing ranks of
Internet users, more attentions and efforts to site visitors into customers. Online business activities, should be depth analysis, grasp
the consumer psychology, using a variety of effective marketing initiatives and strategies to stimulate the consumer behavior. Online
consumer psychology is mainly into the following categories.

Corresponding author.
E-mail: [email protected]
English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD
DOI:10.5503/J.CL.2014.14.008
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2.1.1 Rational and realistic psychological
Most online consumers are young people with high analytical skills, shopping motives are often generated from thinking again and
again, compare, plan carefully, the merchandise, performance, and use are already prepared, and shopping is quite rational, less
susceptible to outside influence. Pay more attention to its value and attach importance to product quality, effectiveness and service, to
practical benefits for the main purpose of the pursuit. Generally, they buy mid-range purchase goods and public goods, if they feel
better after use; they may be loyal customers of a brand or an online shopping mall.
2.1.2 The pursuit of affordable
Although the price for consumers is not the only factor in shopping decisions, it is a very important reference. In other ter ms
substantially similar circumstances, prices tend to be a key factor in customer choice. For general merchandise, the price is often
inversely proportional to demand, lower prices, greater sales volume. Conduct business online, because you can reduce the cost of
traditional marketing in the shop, staff employment costs, the middle part of the distribution agent fees and expenses related to
information, significantly reducing the cost of online products and marketing costs, so, online commodity prices in general are lower.
For example, online discount supermarkets generally sell books to a discount. Pricing of the same type Changhong color TV, except
for regional differences, the online prices are generally lower than the price of traditional marketing channels, the price advantage of
network marketing is evident.
2.1.3 Convenient psychological to break the boundaries of space-time
Online shopping can offer consumers two conveniences. First is the convenience of the time. Online virtual store open 24 hours a day,
year round and ready to receive customers, for workers part-time shopping provides a great convenience. With the quickening pace
of life, the time to go shopping is less and less, people eager to be at home to communicate with manufacturers, timely access to
home services or goods received by mail, online shopping adapt to this desire and demand. Second is the convenience of purchasing
goods. “Shop around” is the shopping skills often used by people. Online selection of merchandise can greatly expand selection of
goods. Moreover, consumers can also use bulletin board to tell thousands of merchants about their needs, to attract businesses and
their contacts, and meet the requirements selected from the goods or services. Moreover, online shopping malls can also provide
remote delivery of business transactions; for example, buy the purchase of the elderly, for foreign parents through online business
products, such as a friend to buy gifts.
2.1.4 Online consumer’s “children” psychological
Online consumers are mostly prominent individual groups; they have their own thoughts, their very own discretion. Moreover, as
they are young, fashion-conscious, and has a tireless pursuit of new things, goods’ “life” are generally shorter, product updates faster
as broad interests, curious, but a lack of patience, attention is easily transferred, if browsing a site need too much time, they will be
very easy to change other, this also demonstrates another feature of the network consumers, “curious and less patient”. Network
characteristics of consumer spending, there is a character similar to the consumption of children, need constantly new things to
arouse excitement, that is, their consumption behavior is “children”.
2.2 Chinese on-line consumer behavior analysis
2.2.1 Personalized
In a network environment, consumers in the shopping process effectively prevent environmental impact of noise and a variety of
temptations. Powerful information processing capacity of network makes consumers choose products with a huge choice and range
from geographical and other conditions. Consumers’ rational greatly enhanced, result increasing demand presents a variety of
features, personalized attendant revealed. Of course, economic developing, people’s income level increasing, also promote the
consumption of the individual. The traditional retail in the face of consumer personalization need to pay higher costs, through the
advanced network technology, internet users can be recorded almost every move, enterprises can enable to better understand his
customer base, and provide consumers with fully customizable services. Therefore, the product or service of online marketing will
become increasingly personalized; blind promotion will be greatly reduced.
2.2.2 Interaction
With the rapid development of technology, such as the network technology, virtual technology, human computer interaction, human
interaction, online consumer interaction will be greatly enhanced, through interaction between consumers and businesses in the
exchange, organizations can quickly access the information. Business marketing strategy will be more positive and proactive. Online
consumer interaction, satisfy the social motives of consumer shopping, housewives habits to talk to salespersons in the shop or other
consumer online shopping, can be free to exchange of ideas with others. As the interaction further improve the personalized service,
will also make consumers feel valued and respected by the business sense than the traditional way to shop with absolutely no
reduction. Interactive role-playing can also satisfy the motives of individual consumers, the consumer in the shopping process will
become more proactive, with the gradual spread of broadband access, and interactive online consumption will be greatly enhanced.
Intelligent community, intelligent commercial building will essentially change the traditional habits. Consumer behavior changes
become more and more “self”, more and more active.
2.2.3 Simplicity
Online shopping can be staying at home and eliminating the troubles for travel and shopping stores, which for more busy worker and
too lazy to go shopping for men, is a very tempting. Online store business shop no time limits at any time. And as online payment
and goods delivery means perfect, in a very short period of time can get the goods they want. Technology continues to evolve,
constantly improving social infrastructure, consumers can shop online anytime, anywhere, such as personal unlimited terminals,
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office PC, home interactive television, the Internet street terminal, Internet access in public places, etc., it is convenient and simple.
Of course, at the same time of convenient purchasing, consumers also requires network services under the normative, accurate and
timely delivery will have a very important influence on promoting to use online shopping behavior of consumers. Online commodity
prices is not absolute advantage, supporting logistics system, including delivery, place of delivery, coverage will become very
important. For example, you set several books on the Internet, 2-three hours after, at the roadside delivery points you can get the
book right away. This convenient will be welcomed.
2.2.4 Fresh fun
Online shopping is a new way to shop, shopping itself is a brand new shopping experience, how to make this new shopping
experience to attract more consumers? Increase the fun of online shopping is an important means. Online stores usually have a
colorful decoration, and the resulting visual entertainment and sensory stimulation to some extent, made the original tired mood and
boredom minds of consumers, to transfer or release. Dazzling array of goods made consumers for the time being forget the sorrow
and confusion in mind, a sense of frustration has been eased. Online shopping, can play games, listen to music, watching movies and
communicate with people, not for us to add a lot of fun to shopping? Pursuit of online shopping will become an important part of
consumer life.
3 Factors Affecting Chinese On-line Consumer Shopping Motivation
Consumer online shopping motives influence consumer behavior directly. To attract more consumers to online shopping, to create an
attractive online retail stores, companies need to understand what factors affect the motivation. Typically, the consumer is based on
the preference or utility size of things to made a choice, consumers choose to purchase an intermediary network to achieve its
purchase task, online shopping can rely on the direct effect. It is the perception of its functions or the effectiveness, such as “useful”
and “convenience”, it can be perception of emotional or hedonic aspects, such as “hedonic”. In addition, some relevant factors play a
regulatory role. Therefore, Tonita, etc. will be divided these factors into two categories: basic decision factors and exogenous factors.
3.1 Underlying determinants
The underlying determinants directly affect consumer shopping motivations, including the usefulness, convenience and pleasureseeking nature of Internet shopping.
3.1.1 Usefulness of online shopping
Usefulness of online shopping is the beneficial results that consumers make the network as an intermediary, it reflects the
effectiveness of the on-line purchase. Such as online shopping provides rich, timely and accurate information on goods and services,
purchase is free from the constraints of time and place, these can greatly reduce the time spent shopping, physical strength and
energy to complete the 24-hour home shopping and home delivery, etc.
3.1.2 Convenience of online shopping
The convenience of online shopping is that shopping on-line only takes a small effort, that consumers purchase on the network is
very simple and convenient. Easy ordering process, clear and easy to understand the transaction interface to facilitate the payment
procedures to facilitate the return process and to facilitate contact with the retailers belong to the scope of online shopping
convenience.
3.1.3 Pleasures of online shopping
Pleasure is often affiliated with those have something related to the field of happiness, as a person, not just to survive, there is more
demand, such as entertainment and enjoyment. Consumers shopping online, is also hoping to purchase to enjoy unlimited fun in the
process, this will encourage consumers to buy more online.
3.2 Exogenous factors
Exogenous factors are other factors that play a regulatory role to motivate the online shopping for consumers, including consumer
characteristics, product type and characteristics, past shopping experience and confidence in online shopping.
3.2.1 Consumer characteristics
Consumer characteristics are available to consumers and affect consumers’ online buying behavior, including relevant statistical
variables, and some individual human characteristics. Humanities statistical variables mainly refer to four factors, namely age, gender,
education level, income. They can affect the perception of usefulness, convenience, pleasure-seeking nature of consumer Internet
shopping.
3.2.2 Type and characteristics of product
Whether implement the online purchase of consumer products also affected by the type, size of risk. Certain commodities will be not
suitable to sold online, on the one hand the lack of consumer goods directly to the visual experience, on the other hand some products
need access to, smell, touch can be purchased, but the network can not meet this requirement. Therefore, the standardization of
commodities (such as books, CD, tape, etc.), in particular, the general quality of the goods does not exist, do not try to sell more
goods online are potential. Personalized products such as perfume, cosmetics, or affected by personal experience of large goods such
as computers, cars, etc., are not suitable for online sales.
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3.2.3 Internet shopping experiences of consumers in the past
Online shopping is also subject to consumer online shopping experience of the past. Hahnemann and Tversky thought that people
made judgments will take a number of shortcut thinking, experience often play a key role in judging. When people made judgments
on an uncertain event, because there is no effective method, often rely on past experience (a shortcut), through analysis of past
experience, gain inspiration, and then use these to determine enlightening. In the online shopping process, consumers based on their
past experience, observe and assess product information, payment method, arrival time, after-sales service, including the risk of such
personal matters. If they have satisfactory online shopping experiences, they will be more willing to continue shopping online, and
vice versa.
4 Measures Chinese Internet Companies Should Take
The fundamental purpose of business is through the provision of products or services to meet consumer demand, so to survive and
develop. Enterprise network, which provides products and services must adapt to consumer demand, according to the psychological
changes in consumer shopping trends to develop effective marketing strategies.
4.1 To provide personalized products and services
For each different consumer, providing products or services, for traditional marketing is just a myth. But the Internet’s most powerful
features is the interactive, apart from product performance, features, quality and service content to be displayed fully, but more
important is the humanity and customer-driven approach, targeting individual need, provide the network-one and interactive features
to enhance communication with customers to better understand changes in consumer demand and provide high value-added
information to guide consumers to participate in online product design, create and meet the individual of demand. This naturally
provides the consumer satisfaction. Such as the famous LEVI’S Internet marketing companies on the use of custom-made jeans, get a
good return.
4.2 To improve the quality and efficiency of service employees
Network marketing requiring employees, especially marketing and network management staff not only has the advanced technical
knowledge, but also in marketing has the ability to work independently; not only the collection, collation, analysis of information, but
also have a strong sense of service and staff communication capacity. Therefore, enterprises should pay attention to attract and
cultivate talented people, improve the overall quality of staff. Network marketing on the corporate organizational structure and
efficiency is also a higher demand. Network features require the enterprises to the outside world, especially the consumer must be
rapidly reflected in a timely manner, this business with e-commerce certification bodies, the financial sector and various types of
logistics companies to establish good relations of cooperation, to ensure the safe, fast, convenient of authentication, payment and
settlement, logistics and distribution, and to establish rapid, service after sales service system.
4.3 To establish an efficient logistics distribution system of socialization
For the business, network marketing is necessary to ensure the goods in the shortest possible time from the nearest distribution
network delivered to consumers; it must rely on modern logistics and distribution system to complete. A powerful system of logistics
system is strong foundation of Wal-Mart stands top of the world’s traditional retail, logistics is more important for the network
consumption, with a strong and comprehensive network of logistics distribution system is the key to smooth consumption.
4.4 Elimination of consumer online shopping safety concerns
The security of online shopping, includes relevant laws, policies, technical specifications, and network security, network engineering,
to accelerate product anti-counterfeiting Po-building and raising the credibility degree of Internet marketing websites, is the key of
online transactions. To this end, the first government departments need to speed up the modifying pace of existing regulations, the
development of relevant e-commerce law, settlement of all disputes occur through legal in network marketing; the second develop
relating electronic payment systems, Internet marketing statute with disputes which do rule-based, according to the law, there are
well documented; the third to establish a complete legal system and the certification authority to maintain order in the network
marketing deal to promote more people to ease online shopping.
5 Conclusion
Grasp the premise of consumer psychology, can be targeted to determine the direction and operation of the business enterprise
objectives, to develop Internet marketing strategies. Internet retail will not only help traditional companies expand sales coverage,
increase sales, but also the cost of compression channels, build brand image and understanding of the final consumer market, the high
pressure of Chinese enterprises, especially export enterprises to switch its domestic market is no doubt that “straw”. Only comply
with the development trend of network economy, the challenge to seek, the company could survival and develop.
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