Literature Review
This section presents an analysis of various literature sources that have discussed different success factors for B2C enterprises. The sources analysed include journal articles as well as other research publications. The conclusions drawn from these sources helped in the establishment of the conceptual framework and the selection of the most appropriate research design for the phenomenon under investigation.
The internet has become an important commercial tool, a fact that has seen many scholars seek to investigate how businesses can best benefit from this revolutionary technology. Clemes, Gan and Zhang (2014, p. 364) point out that businesses all over the world have recognized the innovative potential of the internet as a marketing tool. In their investigation, they sought to find out the key factors that influence the online buying behaviours of Chinese consumers. They opine that the number of internet users in China has been growing steadily. As of 2015, the total number of Chinese online shoppers had reached 51.83 million users (Statista, 2015). Clemes, Gan and Zhang (2014, p. 364) stipulate that given the growing number of internet users and the shift towards online shopping among consumers, enterprises seeking to invest in B2C retailing need to develop a familiarity with the factors that drive consumers towards online shopping. Using self-administered questionnaires and a sample size consisting of 435 participants in Beijing, Clemes, Gan and Zhang (2014, p. 364) report that there are six main decision factors that B2C players need to take into consideration. They include consumer resources, perceived risks, subjective norms, website factors, convenience as well as variety.
Yu (2006, p. 27) holds the view that various scholars in the field of e-commerce have raised concerns regarding the application of B2C online retailing models in developing countries such as China. In his study, he was investigating the barriers to B2C adoption in China and the strategies used by top B2C enterprises in the country. He states that the internet population as well as the economy of China has been undergoing a period of tremendous growth. Despite this growth, doubts have been raised concerning the potential that the Chinese online market holds. Yu (2006, p.27) argues that these doubts have come about due to three main barriers to online retailing, namely less developed credit payment systems, consumer preference of face to face transactions as well as the inadequate transportation infrastructure. He points out that despite these barriers, some companies have been able to integrate online technologies successfully into their operations.
Factors that affect the purchasing intentions of online consumers are in many ways similar to those that influence the intentions of offline consumers. Chen and Chou (2012, p. 104) state that the success of online shopping is largely driven by the extent to which users are satisfied as well as other factors that affect their intentions to continue shopping. In their study, they investigated how trust and fairness affect the intentions on online shoppers to continue shopping online. The researchers conducted a survey using a total of 226 participants and report that a positive effect on consumer trust and satisfaction is achieved through distributive fairness and interactional fairness. They opine further that satisfaction is a strong predictor of consumers’ intentions to continue shopping from a particular online vendor. They also report that increasing the level of trust between the customers and business increases the likelihood that consumers will shop from a particular online store. They conclude by suggesting that the online consumers’ level of satisfaction as well as trust do not only depend on the product offering, but also on the pre- sales and post-sales experiences.