Understanding consumer online shopping behaviour from the perspective of transaction costs



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Access cost
: the cost of connecting to the Internet, such as the PC/Internet access. At this 
stage, consumers would encounter some time costs and monetary costs. 
Search cost
: the cost incurred by consumers in searching for information about online 
products and stores. Consumers would bear some time costs. 


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Evaluation cost
: the cost incurred at the stage of examining the products to be purchased, 
such as evaluate the quality of products according to product pictures, virtual tours, 
descriptions and other customers’ online reviews. Consumers would incur time costs. 
Ordering cost
: the cost incurred by consumers in selecting products, placing the chosen 
products in a shopping cart and checking out. Consumers would encounter time costs. 
Payment cost
: the cost incurred at the process of paying for the product, for example, 
selecting the payment method, opening an online bank account, jumping to the relevant 
online bank website, typing the credit /debit card information, worrying about the security of 
the payment process, and learning how to use online payments. At this stage, consumers 
would bear some time costs and psychological costs.
Delivery cost:
the cost incurred at the process of receiving products, such as choosing a 
delivery method, waiting for products to be delivered at home, and bearing transportation 
costs. Consumer would encounter some time costs and monetary costs.
Monitoring cost
: the costs incurred after ordering or receiving a product in ensuring that the 
terms of the contract have been met. For instance, consumers check the progress status, 
sometimes need to contact online stores and ask them to process orders if they forget to 
process in time, and check the delivery status by contacting the delivery party. During this 
process, consumers would incur some time costs and psychological costs. 
Post-sale cost:
the cost incurred after receiving a product, such as maintenance, return, and 
getting customer service. For example, when the product is wrong or not fit for purpose, 
consumers may need to return products, leading to monetary cost (transportation cost) and 
psychological cost (disappointment, dissatisfaction, depression). Some consumers would like 
to replace the product if the size is not appropriate and have to wait for the product to be 
delivered again, resulting in monetary cost (transportation cost), psychological cost and time 


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cost. In addition, consumes may contact the online store to get some customer service, which 
leads to increased time cost. 

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