Analyzing the Impact of E-Commerce on Individual habits


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Chapter -1 Introduction

1.1 Overview

In the present competitive business era, e-commerce is becoming one of the fastest growing branches of trading through internet. It is an effective tool that is applied by the firms with an aim to increase the sales of its products and services. Before the development of e-commerce, process of marketing was sales force driven. With the emergence of it, the overall process of trading has been changed. Thus, it can be stated as the process of carrying out business transactions through internet. E-commerce exists since 40 years which came into emergence from transmission of message electronically (Goldmanis, Hortaçsu, Syverson and Emre, 2010). E-commerce possesses a significant role in advertising and distributing the products and services to distinct locations. The internet technology has gained acceptance because of the fact that in 2005; more than 42 million households have broadband cables and DSL access. As there is increase in number of individual's purchasing online, there is rise in e-commerce trend which has made the process of trade much easier than ever before.

Before 10 years ago, several retail firms do not believe that customers would ever make the purchase of fashion online. However, it has turned to be wrong. Today, high street retailers are trying to determine their percentage of sales in case if they sell through the means of e-commerce. The sales of online apparel continue to capture higher market share. In the present scenario, retailers are trying to enhance their scale of e-commerce operations (E- commerce is changing the fashion industry- its time to catch up, 2016). This is done by making investment in online sale platforms that displays the products and converts the prospects into buyers in an effective manner. E-commerce has gained success in the category of apparel as a reason of easy and free returns and innovative tools of visualization that result in increasing the sales by fashion industry. Thus, it has become difficult to measure the scope of e-commerce in market place as it provides greater advantage over bricks and mortar stores and mail order catalogs.

1.2 Rationale for the study

The purpose for which present investigation is carried out is related with the analysis of impact of e-commerce on individual's habits and spending in fashion industry. The research will be carried out in the field of online business as it is becoming important in the present competitive era.

What is the research issue?

The issue in present research is in relation with the changing habits of customers that has a greater impact on the way in which firm operates. Further, with the emergence of e-commerce, there is decline in the sales of outlets in fashion industry. Thus, this requires them to adopt suitable strategies of carrying out business transactions so that they can gain competitive advantage in the long run.

Why it is an issue?

It is an issue due to the reason that today; individuals are located at distinct and remote places. Moreover, they possess busy work schedules. Thus, this in return has huge impact on buying habits of the customers. Today, individuals are unable to devote their time in buying products and services of fashion industry from boutiques or outlets (Pahnila and Warsta, 2010). Further, the inclination towards purchasing online is increasing significantly as it offers many benefits to the customers. With this, there is decline in the sales and profitability of businesses that are not operating online. Therefore, it affects their survival in the market for longer time span.

Why it is an issue now?

This has become an issue now days because there is greater competition among organizations which are operating in the fashion industry. These businesses are increasing their sales by carrying out trade over internet (Crespo and del Bosque, 2010). This leads to the accomplishment of consumer's demand with greater ease and minimal efforts. Further, it also facilitates in benefiting the individuals who are residing at distinct locations.

What could this research shed light on?

Present investigation sheds light on the role of e-commerce in bringing changes in the habits and spending of consumers. Further, thesis would demonstrate the advantages of online business for customers. Along with this, it also demonstrates the major drivers for e-commerce. Lastly, it sheds light on the trends that have emerged in the individual habits and spending over the period of five years.

Read more sample- Impact of High-Performance Work Practices Sample

1.3 Research aim and Objectives

The aim of present dissertation is to analyze the impact of E-commerce on individual habits and spending in fashion industry.

Research Objectives

  • To explore the concept of e-commerce and its benefits for customers.
  • To assess the key drivers for e-commerce.
  • To identify the trends in individual habits and spending over the period of five years.
  • To investigate the impact of e-commerce that affects the individual habits and their spending power.

1.4 Research questions

  • How e-commerce is benefiting the customers of fashion industry?
  • What are the key drivers for e-commerce?
  • How e-commerce influences individual habits and spending in fashion industry?
  • What are the trends prevailing in individual habits and spending over the period of five years?

1.5 Potential significance

Present study is suitable in carrying out in-depth assessment of the impact of e-commerce on individual habits and spending in fashion industry. Moreover, it helps in gaining knowledge regarding the benefits of e-commerce for consumers. The potential significance of present reserach has been presented as such. Present thesis possesses greater significance for the scholars and researchers who have interest in conducting investigation on the similar subject that is related with assessing the impact of e-commerce in fashion industry. In addition to this, present research would be of greater importance for the academicians who are conducting Ph.D. This is due to the reason that present investigation provides adequate amount of knowledge in relation to e-commerce and the manner in which it influences individual habits and their spending power.

Present thesis can prove to be significant for e-commerce industry as it would assist in gaining in-depth knowledge to conduct the transactions of business with minimal efforts. Moreover, it assists them in developing understanding regarding the benefits of using e-commerce while carrying out the trade. Another major significance of present research is for the thinkers and scholars (Ha and Stoel, 2012). This is because; the investigation represents innovative information in relation to the methods that are being applied while the study is being carried out. Such can be helpful for thinkers in developing better understanding regarding the methodologies in an effective manner.

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  • Ha, S. and Stoel, L., 2012. Online apparel retailing: roles of e-shopping quality and experiential e-shopping motives. Journal of Service Management.
  • Crespo, A. H. and del Bosque, I. R., 2010. The influence of the commercial features of the Internet on the adoption of e-commerce by consumers.Electronic Commerce Research and Applications.
  • Goldmanis, M., Hortaçsu, A., Syverson, C. and Emre, Ö., 2010. ECommerce and the Market Structure of Retail Industries*. The Economic Journal.
  • Pahnila, S. and Warsta, J., 2010. Online shopping viewed from a habit and value perspective. Behaviour & Information Technology
  • E- commerce is changing the fashion industry- its time to catch up. 2016. [Online]. Acailable through: <>. [Accessed on 26th February 2016].
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