Internet of Things in Online Business: Towards a Conceptual Framework of Online Customer Behavior

Internet of Things in Online Business: Towards a Conceptual Framework of Online Customer Behavior

DOI: 10.4018/978-1-7998-7603-8.ch010
(Individual Chapters)
No Current Special Offers


Online business, just like other industries, has adopted advanced technology for business performance. Hence, the technology of internet of things (IoT) has been implemented in recent years. IoT acts as a business ecosystem by interconnecting all physical objects and systems to execute tasks efficiently. However, the extent to which customers understand and appreciated this emerging technology is understudied. The purpose of this chapter is therefore to understand the customer acceptance as well as the gratification gained and sought by them via the use of IoT technology. Based on the uses and gratification theory, this study focused on the antecedents in shaping the attitude of online consumers towards IoT applications. Furthermore, it also addresses the willingness of consumers in becoming more knowledgeable of product with the support of IoT technology.
Chapter Preview


About Internet of Things

The advent of IoT has influenced the online business to fit into new business changes. Business firms strive to stay competitive and serving customers better by taking advantage of the deployment of IoT in the connected digital market. With higher Internet connectivity, customers are depending on their devices to link to the business systems more frequently than ever before (Murthy & Kumar, 2015). Both customers and businesses are connected with a plethora of devices to a larger extent on a real-time basis (Pflaum & Gölzer, 2018). Customers are becoming more connected and getting familiar with the use of the mobile app (Ho, 2020). They are making contact and communicate with firms for all kinds of business-related matters, ranging from searching products, purchase transactions, customer support, etc. Customers are becoming well versed and using more physical devices that could be linked under IoT technology. For instance, the tracking of the product delivery process became easily traceable with the assistance of IoT sensors and RFID tags. The products’ whereabouts and delivery lead time has been more accurate. Similarly, the customers were able to enjoy the benefits of getting access to the exact expected arrival time.

The inclusion of IoT technology into online business is on the verge. A list of current studies has validated that electronic commerce was one of the main industries disrupted by IoT (Bhatnagar & Kumra, 2020; Fu et al., 2020; Shang, Zhang, & Chen, 2012). While the use of IoT in online business is set forth for continued growth, the attitude and perception of customers towards its usefulness need to be taken care of. Online businesses have recognized the change in customer needs. To stay abreast of technology, online business has revamped its procedures and process with the advancement of IoT technology.

Key Terms in this Chapter

Attitude Towards IoT: Individual’s beliefs and feelings of the outcomes attained from the use of the Internet of Things (IoT).

Online Customer Behavior: The study of the customer behavior and attitude in online business.

Utilitarian Gratification: The task-centered, rational, and goal-oriented gratification required to the behavior in completing online shopping tasks.

Internet of Things: Networked systems that connect physical devices that serve as information sensors with applications within the Internet.

Social Gratification: The evaluation of the social pressure during the performance of online behavior.

Hedonic Gratification: The passion and excitement received during the product or service consumption process.

Product Knowledge: Information about the features, functions, process, and usage of the goods and services offer to the customers.

Complete Chapter List

Search this Book: