Switching to electronic stores: consumer characteristics and the perception of shopping benefits

Abstract

The shift from physical (brick and mortar) stores and hard copy catalog stores toward electronic stores (e‐tailing) may be seen as a continuous innovation building on past changes brought about by in‐home shopping methods such as catalog, TV and direct mail. Why are e‐tailers then having such difficulty retaining their customers? In this paper, we examine the influence of consumer characteristics on perception of shopping benefits associated with electronic and physical shopping. Based on a mail survey of upscale US households, the empirical study finds the two shopping formats to be clearly different from each other in terms of perceived shopping benefits. The data supports the influence of individual characteristics (such as age, household income and family composition) as well as past behaviors on the shopping benefits associated with the two modes of shopping.