Factors influencing the types of products and services purchased over the Internet

TLDR

The study compares Internet buying behaviour between potential Internet buyers and non‑Internet buyers. The analysis shows that product and service characteristics—such as low outlay, frequent purchase, intangible value, and high differentiation—strongly influence whether consumers choose a retail store or an online mall, identifies which types are suitable for online sale, and offers retailer recommendations.

Abstract

Presents the findings of an empirical investigation of Internet shopping in Singapore. Specifically, Internet buying behaviour is compared between potential Internet buyers and non‐Internet buyers. It was found that the classification of different types of products and services will significantly influence the consumer choice between a retail store and Internet shopping mall. The types of products and services that are suitable for selling through the Internet are also identified. Generally, products and services that have a low outlay, are frequently purchased, have intangible value proposition, and relatively high on differentiation are more likely to be purchased via the Internet. Based on the analysis and results obtained from the study, some recommendations are presented to retailers who are interested in selling their products via the Internet.