From Bags to Boxes; : A Study of the Consumers Perception of Value in Online Fashion Retail Sales

Abstract: Abstract Bachelor Thesis in Business Administration. Bachelor of Science with Specialization in Marketing – Main Field of Study: Business Administration. School of Business and Economics at Linnaeus University, Course Code 2FE21E, 2018 Title: From Bags to Boxes: A Study of the Consumers Perception of Value in Online Fashion Retail Sales Authors: Nadine Bolm, Betty Hartigan Supervisor: Michaela Sandell Examiner: Åsa Devine Background: Online retail sales has been growing steadily since the late twentieth century. Fashion, as a segment of the online marketplace, is the largest market in cyberspace and as new companies are combined with old ones who want to establish a presence online, competition is stifling. As more companies offer fashion in the online world consumers behavior evolves with this new reality and customer-perceived value shifts as the consumers values in their transactions shifts. In order to gain and maintain a strong consumer base companies need to know what the variables are that make up customer-perceived value in hopes of affecting it. Purpose: The purpose of this research is to explain the relationship between values of utilitarian nature, those being; monetary savings, convenience, product variety, product information, and customer-perceived value in online fashion retail and to explain the relationship between values of hedonic nature, those being; adventure, gratification, best deal, idea, and customer-perceived value in online fashion retail. Methodology: The research conducted here was an explanatory study to determine how different independent variables related to a single dependent variable. The study was deductive in nature and used a quantitative approach. Independent variables were studied with the use of a convenience sample and self-reporting survey posted online. Statistical analysis was conducted with data collected from 142 valid responses and through the use of validity and reliability methods the data was determined statistically meaningful and valid to test the hypothesis as accepted or rejected.   Findings: The findings of this study show that a new theoretical model was needed to better demonstrate the direct connection between variables that consumers identified as valuable to them in online fashion shopping, had with consumer-perceived value. By examining data collected through online survey it was determined that of the 8 variables, seen as valuable by research into consumer perceived value, 4 would be accepted as such. These 4 variables would become the basis for a new model that explained how consumers develop customer-perceived value. Conclusion: The research explains the relationship the 8 variables selected by previous research for their effect on customer-perceived value. It also provides a model for future research activities or for development of marketing plans with exceptional efficiency and effectiveness in mind. In directly relating each variable to customer-perceived value on its own merit it was found that the variables respondents valued most were of the more practical or utilitarian in nature aside from one, adventure, which possessed the highest level of value of the 8 variables.     Keywords: Customer-perceived value; Utilitarian value; Hedonic value; Online retail; Online fashion retail; Ecommerce; Monetary savings; Convenience; Product variety; Product information; Adventure; Gratification; Best deal; Idea