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Revista Argentina de Clínica Psicológica 2020, Vol. XXIX, N°2, 737-742 737 DOI: 10.24205/03276716.2020.304

ONLINE OF E-COMMERCE ENTERPRISES BASED ON CONSUMER PSYCHOLOGY

Weiguo Sun

Abstract With the proliferation , online marketing has become increasingly popular among consumers. The e-commerce enterprises need to continuously improve their online marketing strategies based on consumer psychology. This paper firstly sums up the relevant theories on consumer psychology, and then carries out a questionnaire survey on online consumers in China. The survey data were analyzed to innovate the online marketing strategies of e-commerce enterprises. The results show that the revenue of e-commerce enterprises and online in China are both expanding on a yearly basis; online consumers are mostly well-educated, aged between 21 and 50, and engaged in online for over 3 years; the most significant influencing factors of behavior include the trust in consumer psychology and online marketing. The research results provide a guide for the development of e-commerce enterprises in China. Key words: Consumer Psychology, E-Commerce Enterprise, Online Marketing, Innovation. Received: 12-02-19 | Accepted: 25-07-19

INTRODUCTION of consumers will have a direct impact on the With the continuous development of shopping behavior of consumers. Therefore, it is of great significance for the growth and and electronics development of e-commerce enterprises to technology, e-commerce enterprises have understand and grasp the psychology and developed rapidly and online marketing has become the main method and important symbol behavioral law of consumers, introduce consumer psychology into the online marketing of e-commerce enterprises (Woodside, 2010). innovation process and formulating more Compared with the traditional marketing model, online marketing has many advantages such as effective and distinctive marketing models (Hogarth & Karelaia, 2006). quickness and convenience. Under this At present, many scholars and experts at development trend, the online marketing of e- home and abroad have conducted in-depth commerce enterprises has firmly grasped the consumer psychology of consumers. The rapid studies on the online marketing of e-commerce enterprises and have achieved numerous development of online marketing has greatly research results. Some scholars have studied the changed the shopping mode of the public so that online shopping has gradually become a popular online marketing model and strategy of e- method for consumers (Lin, 2007). Consumers commerce enterprises (Poiesz, 1989) some scholars have compared the network impact of will be affected by many factors in the online e-commence enterprises with traditional shopping process and the psychological change marketing and analyzed the advantage and disadvantage and development prospect of School of and of Changshu Institute network impact (Rosenstein, 1997); and scholars of Technology, Changshu 215501, China. E-: [email protected] have analyzed the influencing factors of the online marketing of e-commerce enterprises (Liu, Friedman, Barry et al., 2012). However, in

REVISTA ARGENTINA 2020, Vol. XXIX, N°2, 737-742 DE CLÍNICA PSICOLÓGICA

WEIGUO SUN 738 the current research, few studies have focused of strong guiding and reference significance for on the analysis from the perspective of the development of e-commerce enterprises. consumers, especially from psychological theory. The marketing target of enterprises will OVERVIEW OF RELEVANT THEORIES inevitably be the vast consumer group. Consumer Psychology Therefore, it is necessary to study e-commerce Consumer psychology is an important part of enterprises based on the consumer psychology, consumer economics and psychology, which is to which is of strong theoretical and practical study a series of psychological activities and significance. behavioral rules of ordinary consumers in the Based on relevant theories of consumer consumption process. The research content of psychology, this paper studies the online includes not only all the psychological processes marketing innovation of e-commerce of consumers in the consumption process, but enterprises from the perspective of consumer personality psychological factors as well psychology, analyzes the current situation of the (Guixeres, Bigné, Ausín Azofra et al. 2017), as online marketing of e-commerce enterprises and shown in Figure 1. proposes the innovative strategy for the online marketing of e-commerce enterprises, which is

Figure 1. Consumer psychological phenomenon

Cognition process

Psychological process Emotional process

Psychological Volitive process phenomenon

Personality psychology Personality psychology Tendency of individual consciousness

Figure 2. The psychological process of consumer consumption

External influence Experience and Population satisfaction desire environment, social External influence class, family and marketing Situation problem activities, etc identification

Self concept and Information life style gathering Evaluation and Internal influence selection Perception, learning, Experience and product Dealer selection motivation, satisfaction desire and purchase emotion, personality, Post purchase attitude, etc evaluation

REVISTA ARGENTINA 2020, Vol. XXIX, N°2, 737-742 DE CLÍNICA PSICOLÓGICA

ONLINE MARKETING INNOVATION OF E-COMMERCE ENTERPRISES BASED ON CONSUMER PSYCHOLOGY 739

It is necessary to strengthen the year by year, from 4.6% in 2013 to 13.8% in 2018, understanding of consumer psychology, which as shown in Figure 4. on the one hand, can enhance the consumption experience and improve the benefits of Figure 4. Online shopping accounts for total consumption for ordinary consumers; on the retail of consumer in 2013-2018 other hand, can increase the product sales and improve the revenue of enterprises (Macinnis & Patrick, 2006). 15% 13.80% 12.10% 10.60% 9.30% Consumer Psychology 10% Consumer psychology is mainly a series of 5.80% psychological activities generated by the 4.60% 5% consumer group in the selection and evaluation Proportion process of consumer products based on their own preferences and actual needs (Maheswaran 0% & Oyserman, 2013). In the consumption process, 2013 2014 2015 2016 2017 2018 consumers need to have a full understating of Year the consumer goods firstly, which will then trigger the motivation of consumption and the desire of purchase. After being subject to various Figure 5. Analysis on the scale structure of internal and external factors, they will eventually China's online shopping market in 2013- do the purchasing behavior. 2018

ANALYSIS OF THE CURRENT SITUATION OF ONLINE MARKETING OF E-COMMERCE ENTERPRISES IN CHINA With the development and popularization of Internet technology, China's e-commerce enterprises have developed rapidly and the transaction volume has increased year by year, from 12.9 trillion yuan in 2013 to 28 trillion yuan in 2018, which has doubled over 6 years, as shown in Figure 3.

Figure 3. Transaction scale of China's e- commerce market in 2013-2018 In the scale of the entire online shopping market in China, the proportion of B2C has 30 28 increased year by year while at the same time, 25.3 the proportion of C2C has declined year by year, 25 22.1 18.7 as shown in Figure 5. In the future, there is great 20 room for the development of B2C. 12.9 13.4 15 10 ONLINE MARKETING INNOVATION OF E-

Volume Volume of 5 0 COMMERCE ENTERPRISES BASED ON 2013 2014 2015 2016 2017 2018 CONSUMER PSYCHOLOGY Year Consumer Psychology and Behavior under Online marketing Analysis of consumer characteristics under The market size of online is also online marketing gradually expanding and the proportion in total In order to better understand the retail sales of consumer goods is also increasing psychological characteristics of consumers in the

REVISTA ARGENTINA 2020, Vol. XXIX, N°2, 737-742 DE CLÍNICA PSICOLÓGICA

WEIGUO SUN 740 network environment, the questionnaire Analysis of the influencing factors of online method used to investigate the psychological shopping for consumers characteristics of consumers. A total of 800 This questionnaire also includes the questionnaires were randomly distributed and investigation and analysis of the influencing 789 valid questionnaires were collected, with an factors of online shopping for consumers, mainly effective rate of 98.63%. The basic information from four dimensions: consumer psychology, of the respondents is shown in Table 1. corporate characteristics, It can be seen from the survey data in Table 1 characteristics and online marketing. The that the consumer age of online shopping in consumer psychology mainly includes two China is mainly between 21 and 50 years old, and aspects: trust and perceived risk; the corporate the highly-educated characteristics of this group characteristics mainly include three aspects: is obvious, mainly bachelor degree or above. payment method, evaluation and Also, the experience of online shopping is mostly logistics evaluation. Several items are given for more than 3 years and the expenditure on online every aspect of each dimension and each item is shopping in each month is mainly concentrated measured by 5-point Likert scoring method, with between 500 and 2000 yuan. This feature of the 1-point indicating the lowest level of satisfaction online shopping consumer group is that the and 5-point indicating the highest level of popularity of computers and smart phones in satisfaction. Therefore, the higher the score, the China is increasing year by year. And more and higher the satisfaction of online shopping for more young people tend to do online shopping. consumers (Bagozzi & Yi, 1991). Highly-educated people tend to spend more time It can be seen from the data in Table 2 that in the on study and , so they have less and less online shopping process of consumers, the score time to go shopping in physical stores. for the confidence of consumers in the enterprise is the highest, namely 3.988 points.

Table 1. Basic information of the visited

Statistical characteristics Classification Sample size Proportion Male 437 55.39% Gender Female 352 44.61% Under 20 years old 172 21.79% 21-35 296 37.52% Age 35-50 289 36.63% Over 50 years old 32 4.06% High school and above 167 21.16% Junior College 231 29.28% level Undergraduate 209 26.49% Postgraduate and above 182 23.07% Within 1 years 12 1.53% 1-3 year 107 13.56% Experience of online shopping 3-5 year 198 25.09% 5-7 year 297 37.64% More than 7 years 175 22.18% Less than 500 yuan. 192 24.33% Monthly consumption amount 500-1000 yuan 256 32.45% of online shopping 1000-2000 yuan 247 31.31% More than 2000 yuan 94 11.91%

Table 2. Descriptive statistics of each variable Dimension Item Mean Standard deviation Trust 3.898 0.539 Consumer psychology Perceived risk 3.274 0.517 Means of payment 3.862 0.602 Enterprise characteristics Shopkeeper evaluation 3.638 0.571 Logistics evaluation 3.714 0.612 Commodity characteristics Commodity evaluation 3.878 0.551 Online marketing Marketing 3.889 0.593

REVISTA ARGENTINA 2020, Vol. XXIX, N°2, 737-742 DE CLÍNICA PSICOLÓGICA

ONLINE MARKETING INNOVATION OF E-COMMERCE ENTERPRISES BASED ON CONSUMER PSYCHOLOGY 741

The score of the online marketing of the 1985). enterprise is relatively higher, namely 3.889 points. The score for the perceived risk factor in Enhancing the online marketing level of e- consumer psychology is the lowest, namely commerce enterprises 3.274. All influencing factors have scored more It is necessary for e-commerce enterprises to than 3 points. fully understand and grasp the psychological The significant test of each factor influencing characteristics of consumers in the online the online shopping of consumers in Table 2 is marketing process. Usually, consumers are more performed and the correlation analysis is concerned about the price of products, the conducted mainly through the SPSS18.0 analysis convenience of shopping and the promotion of . The specific results of the analysis are products (Campbell & Winterich, 2016). At shown in Table 3. present, with the accelerating pace of life, consumers are increasingly demanding in the Table 3. Correlation analysis convenience of shopping and they are more and more sensitive to price. Also, they are easily Item Relevance P affected by the business promotion. Under Trust 0.72* 0.024 moderate price, if e-commerce enterprises can Perceived risk -0.51* 0.031 enhance the promotion, provide convenient Means of payment 0.56* 0.028 payment methods and quick logistics, they will Shopkeeper 0.62* 0.036 evaluation attract the attention of consumers. Therefore, in Logistics 0.59* 0.041 the online marketing process, e-commerce evaluation enterprises can put the of products Commodity 0.63 0.092 in a more conspicuous position, so that evaluation Marketing 0.71* 0.017 consumers can focus on their attention at the first time. Also, some measures, such as It can be seen from the data in Table 3 that promotion and free shipping can be taken to the P of consumer psychology, corporate attract consumers. characteristics and online marketing is less than 0.05 and the symbol is positive, indicating that Providing personalized and differentiated these three factors can significantly affect the services to consumers online shopping of consumers. Among these At present, the needs of the vast number of factors, the impact of the trust in consumer consumers in China are becoming gradually psychology and the online marketing of diversified, and the type of products is also enterprises is the most significant. The P value of expanding. In the online marketing process, e- the commodity characteristics is higher than commerce enterprises need to collect the basic 0.05 and the coefficient symbol is positive, but information of consumers in a timely manner the result is not significant. and establish detailed profile of consumers, including age, income, shopping preference, Measures for the Online marketing occupation, etc. Also, enterprises should provide Innovation of E-Commerce Enterprise personalized services for different consumers Enhancing the credibility of e-commerce (Malhotra, 2010). In this way, e-commerce enterprises themselves enterprises can provide differentiated products It can be discovered in previous analysis that and services facing different consumer groups, the impact of the trust of consumers in e- which enhances the efficiency of marketing and commerce enterprises is the most significant on the shopping experience of consumers (Suter & the online shopping behavior of consumers. Burton, 1996). Therefore, e-commerce enterprises should constantly improve their corporate image, mainly reflected in the improvement of CONCLUSION credibility and the quality of products and Based on relevant theories of consumer services so that they can continue to attract psychology, this paper studies the online consumers, enhance the shopping experience of marketing innovation of e-commerce consumers and improve consumer satisfaction, enterprises from the perspective of consumer thus promoting the sales of enterprises (Jones, psychology. The specific conclusions are as

REVISTA ARGENTINA 2020, Vol. XXIX, N°2, 737-742 DE CLÍNICA PSICOLÓGICA

WEIGUO SUN 742 follows: Hogarth, R. M., & Karelaia, N. (2006). On heuristic China's e-commerce enterprises have and linear models of judgment: mapping the developed rapidly, and the transaction volume demand for knowledge. Social Science Electronic has shown an upward trend year by year. The , 114(3), 733-758. market size of online retails is also gradually Jones, S. (1985). Problem-definition in marketing expanding and the proportion in total retail sales research: facilitating dialog between clients and of consumer goods is increasing year by year. researchers. Psychology and Marketing, 2(2), 83- The age of online consumers is mainly 92. concentrated between 21 to 50 years old. The Lin, H.-F. (2007). Effects of extrinsic and intrinsic highly-educated characteristics of this group are motivation on employee knowledge sharing obvious, whose online shopping experience is intentions. Journal of Information Science, 33(2), mostly more than 3 years. 135-149. The age of consumers in online shopping in Liu, L. A., Friedman, R., Barry, B., Gelfand, M. J., & China is mainly between 21-50 years old. The Zhang, Z. X. (2012). The dynamics of consensus high-education characteristics of the group are in intracultural and intercultural more obvious, and the experience of online negotiations. Administrative Science Quarterly, shopping is more than three years. 57(2), 269-304. Consumer psychology, corporate Macinnis, D. J., & Patrick, V. M. (2006). Spotlight on characteristics and online marketing can affect: affect and affective forecasting in impulse significantly affect the online shopping of control. Journal of Consumer Psychology, 16(3), consumers. Among them, the impact of the trust 224-231. in consumer psychology and the online Maheswaran, D., & Oyserman, D. (2013). Call for marketing of enterprises is the most significant. papers for a special issue in journal of consumer psychology: “emotion, self, and identity: implications for and consequences of consumer Acknowledgement behavior”. Journal of Consumer Psychology, 23(1), 1. Humanities and social science foundation Malhotra, N. (2010). Information and sensory project fund plan project of the ministry of education: "based on the platform of consumer overload information and sensory overload in psychology and marketing. Psychology & online behavior differentiation and open platform Marketing, 1(3-4), 9-21. strategy research" project number: 15 yja630065, head of the project: Wan Xing. Poiesz, T. B. C. (1989). The image concept: its place in consumer psychology. Journal of Economic

Psychology, 10(4), 457-472.

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REVISTA ARGENTINA 2020, Vol. XXIX, N°2, 737-742 DE CLÍNICA PSICOLÓGICA