The 1999 results of the Wharton Virtual Test Market indicate that the rate of growth of online spending per person is declining even though total online retail spending is increasing. In addition, findings from the 1998 study forthcoming in the Journal of Interactive Marketing revealed a significant dropout rate of online shoppers. Further, new buyers are not arriving as quickly to take their place. The implication is that online shopping is just another way of shopping.
People buy online for convenience.
For example, one predictor of whether someone will buy online is travel time to the nearest music store. The farther away someone is from a music store, the more likely they will buy online. In addition, increased experience with using the Internet, higher numbers of hours online at home, use of the web for financial services and a significant reliance on email all increased the likelihood of spending online. The Wharton Virtual Test Market has tracked more than 23,000 panelists since 1997, including preliminary results from 791 participants who have been on the panel for all three years. These same-sample studies have shown a slowing in spending by the same individual over time.