The Impact Of China's E-commerce Development On Household Consumption

E-commerce is a modern trading platform based on information technology.It will integrate buyers and sellers in different places into the network world,enabling them to expand their trading activities.The products' information and price are displayed on the platform together with shopping intention of consumers,which enables the buyers and sellers to exchange information freely and efficiently.In contrast to the traditional market,the distribution of shops is more dispersed,the exchange of information is not smooth,commodity prices are often controlled by monopolistic vendors,and consumer behavior is frequently accompanied by certain additional costs.The development of the electronic business platform greatly optimizes the efficiency of market resource allocation,reduces the information asymmetry,and solves the drawbacks in the traditional market to a certain extent.However,through the electronic business platform shopping,also need to pay additional logistics cost and time cost.Therefore,residents in consumer decision-making,how to make choices in the electricity supplier and traditional channels,the impact of electricity supplier platform development on consumer spending,and other issues need further analysis.This paper constructs a theoretical model from the perspective of maximizing consumers' utility and derives the impact of electricity supplier development on consumer shopping decisions.The specific cost will consumers pay in the traditional shopping market of physical and mental energy and time consumption as parameters into the model,together with the cost that shopping business platform generated respectively,explore the path of business platform influence on consumption.Through the model deduction,we found that the emergence of electronic business platform will change the number of consumers to buy goods and total consumer spending,but the extent of its impact will vary due to the price elasticity of demand.That is,the impact of China's e-commerce development on consumer spending in different segments of the product market is different.The article uses the provincial panel data to do empirical research,and comprehensively examines the impact of e-commerce on consumer spending.The empirical results also confirmed the impact of electricity supplier development on household consumption.The empirical results with the theoretical model,this paper draws the conclusion:(1)the development of the electricity supplier to promote household consumption in China;(2)promote business platform for consumption is reflected in the efficient matching the needs of buyers and sellers,the long tail goods formed huge market in the network.