Research proposal Online shopping; factors affecting online consumer behaviour

Research proposal Online shopping; factors affecting online consumer behaviour

1.0 Introduction

1.1 Background To The Study

The retail industry in Australia has undergone significant changes over the past years. Retailing consists of direct transactions with the customers and coordination of the business activities from end to end from the concept stage to when the commodity is being offered. The retail industry is one of the essential sectors in Australia and contributes a lot to the development of the economy. Indeed the retail sector is one of the most dynamic areas in the economy and experiences steady growth each year. The industry has a significant contribution to the GDP and is one of the active elements in the marketplace. Not only is retailing an essential part of the economy but also forms a significant role in the everyday aspects of our lives. The trading and transaction for goods existed since the olden times, but there has been transformation and evolution in the industry that has made the activity more formal. There have been continuous changes that have taken place in the industry over the past years, and new trends continue to take place in the industry. The retailing has evolved and integrated technologies.

Australia has been experiencing significant developments in the industry. The country is positioned as the 14th destination for retail household products across the globe. There are more than 140000 retailers in  Australia . retail companies employ close to 50% of Australia’s working population (Intelligence 2019). One of the recent developments in the Australian retail sector Is online shopping. The online shopping in the retail industry has taken centre stage and has accounts significantly in the sales made by the retailers over the past three years. Most of the commodities shopped through the online platform include the apparel, clothes, household items, furniture and many more. Most analysts have predicted that online shopping will continue to grow in the next years. These trend in the retail sector has provided an opportunity for the customers to shop from the comfort zones while minimising movements. The pattern has also set a competitive advantage in the industry. The technology used in the industry has brought tremendous changes that have led to the incorporation of different advertising and selling styles.

Some of the best online retailers in  Australia include the Myer holdings, Woolworth, David Jones, SurfStitch among others. Although The online shopping has been one of the critical trends in the current Australian retailing market,  there have been a lot of issues that have been brought about by the online shopping such as the increased competition from both the local retailers and the international retailers.  This is because Australia offers one of the best markets for online shopping products (Bellman et al. 2009). There is a positive attitude towards the online shopping platform which includes trust in the products that the retailers are offering. However, some factors influence the online shopping behaviours of consumers. Such elements in the online shopping influence how whether the customers will revisit the online retailers or retention of the customers. It is essential for online retailers to know how to attract customers through their online platforms.

1.2 Problem definition.

The dissertation is about online shopping in the Australian retail industry. As the online shopping continues to take a trend in Australia, it becomes essential for the retailers to improve on the services that their offer through the online platform inoder to ensure success on the online platform. Consumers have formed a hesitant pattern or behaviour towards online shopping. Some consumers have raised issues concerning the products they purchase from the online retailers not meeting the standards as depicted from the website. Some companies have made an effort of coming up with interactivity features on their site to improve on the customer experience in the online platform (Darley et al. 2010). However, this was not as effective to the consumers as many consumers viewed interactivity differently. There has been little research that has been done concerning the factors that influence consumer buying behaviour in online shopping. The dissertation shall try to examine the different factors that affect customer buying behaviour in online shopping.  The research will improve on the little literature that is available concerning the topic.

1.3 Aims of the study

Australian retail industry is one of the critical sectors in the country’s economy. The industry consists of dynamic market operators both local and international. There is a lot of competition which continues to grow gradually. The online retailers need to adopt methods that would help them gain a competitive advantage in online shopping to attract new customers and retain other customers (Javadi et al. 2012). In return, this will enable them to boost their online sales thus increasing their profit margins. The dissertation will be providing the factors that influence customer behaviour on online shopping. The research will give the importance of online retailers adapting to the firm.

1.4 Research questions

What is the impact of online shopping in the retail industry in Australia?

What are some of the statistics and figures that support online shopping in Australia?

What is the perception of consumers on online shopping in Australia?

What factors affect consumer buying behaviour in online shopping in Australia?

How does consumer buying behaviour on the online platform affect sales?

How do online retailers deal with consumer buying behaviour?

The importance of managing the factors that influence consumer buying behaviour in online retailing?

1.5 Research objectives

To assess the impact of online shopping in the retail industry in Australia

To identify factors that affect consumer buying behaviour in the retail sector in Australia

To identify measures that can be taken by online retailers

To determine the importance of managing the factors that influence customer buying behaviour in online retailing?


1.6 Importance of the study

The importance of this dissertation is that it provides critical insight for the online retailers who will be able to familiarise themselves with the factors affecting consumer buying behaviour. Addressing these issues will enable the retailers to have a competitive edge in online shopping which has taken centre stage in Australia (Sia et al. 2009). The research will also improve on the limited literature that is available on the topic of online consumer behaviour.





Reference list

Bellman, S., Lohse, G. and Johnson, E.J., 2009. Predictors of online buying behavior.

Darley, W.K., Blankson, C. and Luethge, D.J., 2010. Toward an integrated framework for online consumer behavior and decision making process: A review. Psychology & marketing27(2), pp.94-116.

Intelligence, M., 2019. AUSTRALIA RETAIL SECTOR – GROWTH, TRENDS AND FORECAST (2019 – 2024). [Online]
Available at:
[Accessed 11 april 2019].

Javadi, M.H.M., Dolatabadi, H.R., Nourbakhsh, M., Poursaeedi, A. and Asadollahi, A.R., 2012. An analysis of factors affecting on online shopping behavior of consumers. International Journal of Marketing Studies4(5), p.81.

Sia, C.L., Lim, K.H., Leung, K., Lee, M.K., Huang, W.W. and Benbasat, I., 2009. Web strategies to promote internet shopping: is cultural-customization needed?. Mis Quarterly, pp.491-512.