Abstract

It is well acknowledged that the Internet is currently being used as 1) a source of information; 2) a communication tool; 3) a social system; and 4) a marketplace (Maignan and Lucas, 1997). Despite of its rapid growth, the sales volume on the Internet still remains relatively low compared with alternative retailing forms. Only 8 percent of Internet users have ever made purchases through this medium, while only 18 percent of them have spent over $50 (1995). Although the reasons for this low volume of transactions is still not totally clear, some obvious obstacles for shopping electronically are security and privacy concerns (Rose, 1997; Greene, 1997), accessibility to the medium (Maignan and Lucas, 1997), and credibility of the information on the Internet (Celarier, 1996). The question that intrigues millions of businesses all over the world is what needs to be done to let the Internet catch up with other retailing forms in sales. To answer this question, a systematic study of consumers’ purchasing activities on the Internet must be conducted to find out what encourages and discourages these activities.

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