The Impact of Broadband Internet Use on Consumer Purchasing Behaviour

Slovenia is witnessing a tremendous growth in the number of broadband internet access connections. The penetration rate exceeds 60%, which is above the average for Europe and the European Union (EU27). The analysis, which is based on the conducted research, shows the relationships between different types of internet activities and customer purchasing behaviour. The finding regarding the use of broadband access for communication appears similar at first glance, but some differences do emerge. Electronic mail is used by all categories of customers and reaches the absolutely highest percentage of use, up to 45%.

Problem

Slovenia is witnessing a tremendous growth in the number of broadband internet access connections. The penetration rate exceeds 60%, which is above the average for Europe and the European Union (EU27). With increasing accessibility, the number of users among the population is also growing, as well as the quantity of services they use, both in terms of type and scope.

Solution and Method

The analysis, which is based on the conducted research, shows the relationships between different types of internet activities and customer purchasing behaviour. In the areas of e-commerce and e-services, there are still large reserves, as they are not as developed here as in EU27 countries with similar broadband access development. The development of information and communication technology in Slovenia is very good.

In terms of the percentage of the population with broadband access, we are reaching and slowly overtaking the EU27 average; countries such as France, Spain, Austria and Italy have fallen behind us. Access to a wide range of online services is therefore guaranteed. Most frequently, the internet is still a source of information of all kinds, a means of establishing contact with the surroundings and entertainment.

These segments of services on broadband internet access are used by users every day. Structural differences show that a very important factor is whether broadband access technology is close to the user or not. Those more advanced users, with faster access, use services more frequently and the range of services used is also wider.

Users of more advanced communication tools are more frequent buyers. The research showed that in the use of the web for entertainment, there are no noteworthy differences between those who have better developed online shopping habits and those who have poorly developed habits or none at all. In all forms of use, whether video or audio content, they are very close together, with differences within 3%.

Results

The finding regarding the use of broadband access for communication appears similar at first glance, but some differences do emerge. Electronic mail is used by all categories of customers and reaches the absolutely highest percentage of use, up to 45%. However, among regular buyers it is the lowest, only 37%.

Why? Regular buyers swear by fast two-way communications, by more direct contact. Messenger and VoIP voice service are those that enable immediate response, exchange of data and opinions and shorten the path to the goal.

The area of information searching is also an everyday matter for users of broadband access services. Among areas, it is even the most frequently used. The search for educational content is the same across all categories.

In the characteristics of use that precedes purchase, a difference in behaviour patterns emerges. Whilst regular buyers most often search for information about products, services and suppliers, non-buyers do this less frequently. On the other hand, non-buyers most frequently search for data in directories, more often than regular or occasional buyers, who are quite balanced.

This means that non-buyers obtain data about products, services and suppliers online, as well as the necessary telephone numbers. When we combine this data with the data that before purchase they most consider recommendations from friends and information from the seller, we see why they go to a traditional shop for purchases and not online – they do not trust the web sufficiently as a source of data or as a purchasing channel. Thus, the picture regarding the use of services when we talk about online shopping and conducting financial transactions is modest.

The factor of broadband access use in the area of purchases and finance is half the size of the information factor. Basic financial services, those that are a necessity: payment of bills received by households, taxes that are unavoidable, have found their place. The same can be said for purchases of travel and technical goods.

Products for personal use and home partially follow them, other purchases and services are far behind. The volume of purchases is small. A characteristic of Slovenian users is the low percentage of those who take advantage of the benefits of online shopping such as: speed, breadth of offer, accessibility 24 hours a day – all days of the week and the immense possibility of comparing offers.

Partly the reason for the modest volume is poorer computer literacy among the population, which is however improving day by day. The lack of tradition in this form of shopping also adds something. Suppliers will have to do more for the development and volume of online shopping, primarily with the appearance and range of products on their sites, user-friendliness, guarantees, service data and services.

Above all, large traditional retailers are lagging far behind in updating their websites with offers to customers. A large and important factor in shopping via broadband access is purchase security. It has been shown that a considerable obstacle to the expansion of online trading is distrust regarding data security, especially when we use cashless payment mechanisms.

The data that only 16% of Slovenian users made a purchase online, whilst a full 19% did not do so due to security concerns, is a clear sign of this. In the European Union, these ratios are completely different, 2.5 times more users make a purchase than have security concerns. The introduction and use of effective security mechanisms is essential here.

In electronic banking, which is somewhat close to us, known examples of good practices exist that protect users against abuse. These standards need to be introduced into other forms of online business with the aim of increasing trust and the volume of online purchases.