The paper "Factors Affecting on Online Shopping Behaviour of Consumers" is a great example of coursework on marketing. All businesses face major risks in the course of delivering their business objectives and in doing the business. It is explained to be the future uncertainty of the business in making profits or also avoidance of making losses due to some unforeseen and therefore unaccountable future events (Smart shopping math 2011). Business risks are divided into two major categories the internal risks and the external risks. Internal risks are the ones that arise from within the business organization and they include human factors such as the talent, strikes by the workers or even lack of dedication by the employees.
An example is the cost of production, and more so the transportation cost on the other hand. This is a risk that online shoppers have to undertake in the course of decision making. It affects the prices of the products in that the higher the cost of production the higher the prices. Online shoppers only shop where either the seller offers the after-sales services to ferry the products to the shoppers’ premises or where it is cheap to sell for the shopper to transport the products.
Consequently, the lower the cost of production the lower the prices of commodities are. This affects both the basic and luxurious goods (Coughlin & D'Ambrosio 2012). There is also the external risks are the risks that are caused by events that take place outside of the organization which may include factors that cannot be controlled by the business such as economic factors like the marker risks and the pricing pressures.
It may also include natural factors and other political factors in the economy (Coverdale & Wilbon 2013). In this study, online shoppers and businesses will be focused on and how their sales respond to the change in the prices and the risks that the consumers consider in making their shopping decisions. The dependent variable is the online behavior while the independent variable is the risks to be taken into consideration are financial risks, product risk, convenience risk, non-delivery risk, service, and infrastructural variables as well as a good return policy.
Increasing the prices of the products is not necessarily the answer to increasing profits for a business. Online shopping has helped in ordering goods without necessarily having to travel outside the country which would be expensive for the business. However, if a business is able to increase sales, it would register a profit, especially in a country with a poor economy. A research conducted shows that many businesses fail to prosper or even maintain themselves in the recession times due to ordering expenses and traveling overheard, overpricing, and they are easily driven out of the market by their competitors (Huddleston & Minahan 2011).