Consumer Choice Behavior and Electronic Shopping Systems – A Theoretical Note

The aim of this paper is to provide an overview of alternative approaches in modeling consumer choice behavior with respect to making purchases either in the traditional manner or using an electronic shopping system. We concentrate on the effects of two specific features: the amount of time spent on shopping and the shopping experience. We consider a simple two-good situation in which one good is a composite good that consists of all goods purchased electronically, and the other is the composite of all goods purchased in a traditional manner. The models suggest that both time saved and an increase in shopping experience related to Web-based shopping will lead to increased purchasing at a Web shop.