Modeling Consumer Adoption of the Internet as a Shopping Medium: ...

As a medium for conducting transactions, it is easy for orders, invoices, and other business documents to be transmitted electronically at a high speed and low cost. Payment can also be made electronically using a credit or debit card (Hoffman Novak, 1996). As a distribution medium, the Internet enables certain products and services to be easily delivered to consumers without geographical limitations. Thus, the Internet provides retailers with several business advantages, making it attractive for retailers to increasingly use as part of their marketing strategy (Caruso, 1995; Kline, 1995).

During the late 1990s, many retailers anticipated a rapid expansion of Internet retail activity, with enhanced profit potential, as a result of the unique features of the Internet as a shopping medium and ongoing sociodemographic changes. Through Internet stores, consumers can easily perform deep, nonlinear searches and control the entire shopping process. Perceived consumer benefits from Internet shopping include greater price competition, customization of products, expanded information on goods and services, wider choice of products, and increased shopping convenience (Hoffman Novak, 1996; Jarvenpaa Todd, 1997). Also, sociodemographic changes, such as an increase in families with two working parents and in single-parent homes, pressure to free up limited leisure time, a more computer-literate population, and cutbacks in store personnel should encourage more consumers to shop online (cf. Jarvenpaa Todd, 1997).