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The growing use of Internet in India provides a developing prospect for online shopping. If Emarketers know the factors affecting online Indian behavior, and the relationships between these factors and the type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones, while retaining existing online customers. This project is a part of study, and focuses on factors which online Indian buyers keep in mind while shopping online. This research found that information, perceived usefulness, ease of use; perceived enjoyment and security/privacy are the five dominant factors which influence consumer perceptions of Online purchasing. Consumer behavior is said to be an applied discipline as some decisions are significantly affected by their behavior or expected actions. The two perspectives that seek application of its knowledge are micro and societal perspectives. The online purchasing behavior of online shoppers and factor influencing online shopping behavior and its future perspective. Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. Companies also use the Internet to convey, communicate and disseminate information, to sell the product, to take feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities they will receive if theypurchase the product from a particular store. Many experts are optimistic about the prospect of online business. In addition to the tremendous potential of the E-commerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence. It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of E-retailing, researchers continue to explain E-consumers behavior from different perspectives. Many of their studies have factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context.
Introduction
Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. Companies also use the Internet to convey communicates and disseminate information, to sell the product, to take feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities the will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business. In addition to the tremendous potential of the Ecommerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence .It has been more than a decade since business-toconsumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of E-retailing, researchers continue to explain E-consumers, behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context.
Theoretical Foundation
The Internet has developed into a new distribution channel and online transactions are rapidly increasing. This has created a need to under how the consumers perceive onlinepurchasing price. Trust and Convenience were identified as important factors. Price was consideredas to be a most important factor for a majority of the students. The internet has created aparadigm shift of the traditional way people shop. A consumer is no longer bound toopening a times or specific location. So he can become active at virtually any time anyplace and purchase the products or services.The internet is relatively a new medium for communication and the information exchangethat has present in everyday life. The number of internet user is constantly increasingwhich is also signifies that online purchasing is increasing. The rapid increasing isexplained by the consumer behavior. The internet is considered a mass medium thatprovides the consumers with purchase characteristics as no other medium. Certaincharacteristics are making it more convenient for the consumer compared to thetraditional way of shopping, such as the ability to any time view and purchase productsvisualize the needs with products and discuss products with other consumers. Onlineshopping is the process of consumer go through the when they decide the shop on theinternet.The internet has developed into a new distribution channel and the evaluation of thischannel. E-commerce has now identified. Using the internet to shop online has becomeone of the primary reasons to use the internet combined with searching for products andfinding the information about them. Therefore internet develop the h Companies alsouse the Internet to convey, communicate and disseminate information, to sell theproduct, to take feedback and also to conduct satisfaction surveys with customers.Customers use the Internet not only to buy the product online, but also to compare prices,product features and after sale service facilities they will receive if they purchase theproduct from a particular store. Many experts are optimistic about the prospect of onlinebusiness.Due to the rapid development of the technologies surrounding the Internet, a companythat is interested in selling products from its web site will constantly has to search for anedge in the fierce competition. Since there are so many potential consumers, it is of theout most importance to be able to understand what the consumer wants and needs.
2000 to $522 million in 2007 and it is expected to rise above$700 million by end March 2013.
Review of Literature
1. Petrovic Dejan (2006)in his study on Analysis of consumer behavior online explained that the most relevantbehavioral characteristics of online consumers and examine theways they find, compare and evaluate product information. Comparison of the newlycollected survey data with the existing consumer behavior theory resulted in detection of a number of issues related to a specific consumer group. The purpose of this report is totranslate these findings into a set of implementation activities on strategic andtechnological level. Execution of these recommendations will result in better conversionof visitors into customers and encourage customer loyalty and referrals.The focus groupof this study will be young adults aged between eighteen and thirty-four interested inbuying a mobile phone or a related product. 2. Bikramjit Rishi (2010) in their study on online shopping is an innovative option of distribution available in the hands of marketers. It is innovative and creative because marketers can experiment with it in form, content, visibility and availability. In India online shopping is considered as a relevant alternative channel for retailing and it is now an important part of the retail experience. This research study is an empirical study to find out the motivators and decisional influencers of online shopping. The sample has been selected from the youth population as this group of people actually use internet to buy online. The study highlights that reliability; accessibility and convenience are the major motivator factors which motivate the Indian consumer to buy online. Similarly, reluctance and preference are the two decisional factors which influence the decision. 3.Shun &Yunjie (2006) in their study showed that there are product types, which are more likely to be sold online such as software, books, electronics and music. Reason for this is that when purchasing these types of products, one does not require personal inspection and most, if not all features, can be outlined in the product description and images. Most products in the mobile phone family belong to this category. According to the recent research on consumer behavior on the Internet users (Cotte, Chowdhury, Ratenshwar& Ricci, 2006), there are four distinct consumer groups with different intentions and motivations: Exploration Entertainment Shopping Information Music Videos, Lyrics - Daily updated collection of music videos and lyrics. Majority of young adults interviewed for purpose of this research tend to be active information seekers. A high level of technological
confidence within this group tends to be an encouraging factor when it comes to product information research online. The following analysis presents both, focus group results and behavioral theory in a parallel fashion divided into two main research topics: Information Retrieval and Search Patterns Perception of Product Information Online These two areas is mutually dependent and particularly important in a market where consumers have the power to choose the right 20product from a number of competing suppliers. Well-structured product information that cannot be found easily online is as much of a problem as is having easily accessible information that does not meet the consumer's expectations. 4. Harris Interactive (2009) in their study of online customer experience. The survey found that online customer experience reached an inflection point in 2009. The percent of consumers who have experienced problems when conducting transactions online showed its first substantial decrease in five years -- from approximately 87% in all previous Tealeaf surveys to 80% in 2009. While the percent of consumers experiencing online transaction problems, at 80%, remains high (the potential online shopping dollars impacted by transaction problems rings up at $47.6 billion), this improvement points to a growing business focus on delivering better customer experiences. The survey sheds light on forces driving this accelerated online customer experience focus, including the down economy and increased consumer power due to experience-sharing via social media. It also examines consumer behavior when transacting online, call center behavior related to online issues and mobile commerce. Verticals represented in the findings include retail, insurance, travel and financial services. 5. JianweiHou, Cesar Rego(2007) in their study in traditional auctions, it is often assumed that bidders are a homogenous group. However, since most online bidders are average consumers instead of professional bidders, we suspect that online bidders are a heterogeneous group. The purpose of this paper is to explore the types of online bidders based on their real bidding behavior in the context of consumer-to-consumer online auction market. A cluster analysis is employed and four types of online bidders are finally identified in a private value auction, namely, goal-driven bidders, experiential bidders, focused bidders, and opportunistic bidders. The profile and performance of each group are also discussed.
Need
The need of this research is to identify and get insight into what main factors the online consumer takes into consideration when most he buy products on internet what affects their shopping behavior, basic need of this research is to find out what are the main factors affect the online consumer when considering and making a purchase over Internet.
Research Methodology
Data for this study was collected by means of a Survey conducted on internet. The sample size was 100. .The Questionnaire (shown in Annexure) was used .Mainly to test the model proposed for Attitude towards online shopping. The type of research was both exploratory as well as Descriptive. Likert five point scales rangingfrom Strongly Agree to strongly disagree was used as a basis of Questions.
Research Strategy
When collecting data to approach the purpose of a research there are two ways in which the data can be collected. In order to acquire a General knowledge about the topic, secondary data is primarily used and is one of the ways by which data can be collected. The second way to collect data is the primary data collection. Usually when a study is conducted, secondary data is not sufficient enough and needs to be completed with primary data which is collected by the research.
Sample Design
The factors that we intended to examine can be applied to and investigated at any population that uses the Internet and buys online products Online. Since there are time and resource restraints, a specific Population had to be identified in order to generalize and create relevant segments. We decided that the sample size should contain over 100 respondents and we collected answers from100 respondents. Convenience sampling involves using samples that are the easiest to obtain and is continued until the sampling size that is need is reached. Type of research: Descriptive Research Sample Size:- 100
1. Gender
Particular Respondents
Male 51
Female 49
Gender
male female
Interpretation: Out of the 100 respondents 51 respondents were male and 49 respondents were female. Which shows that data is not gender biased.
Particular
Respondents
Less than 1 hr 35
1-2 hr 15
2-3 hrs 20
Interpretation: It can be easily seen that majority people spent less than 1 hr on internet as majority of the people who were surved were working people. Then we can see that 20 respondents spends 2-3 hrs
particular
Respondents
Very often 28
often 25
sometimes 24
rarely 9
never 14
Interpretation: Majority of people spent time on internet prior to purchase because of easy availability of information on internet &at the same time we can also see that there are people who still do not use the internet prior to purchase.
particular
Respondents
Very often 30
often 10
sometimes 29
Rarely 16
Never 15
Interpretation: Majority of the respondent very oftenly buy products through internet as it a time saver medium & at the same time it provide a large variety of goods.
Particular
flowers
Electronic Appliances 10
Clothes&shoes
Cds/books
others
Respondents
23
25
20
22
Interpretation: Clothes and shoes are the most commonly products that people buy. At the same time flowers is also the most sellable products over the net. Electronic appliances is least preferred product over the internet.
Particular Respondents
500-1000 20
1000-2000 45
Above 2000 25
Interpretation: Many people like to spend Rs. 1000-2000 on a single purchase over the internet. People also like to spend above Rs.2000 on the shopping over internet.
Calculations
Q.NO. V. SATISFIED RATING SUB-TOTAL SATISFIED RATING SUB-TOTAL NEUTRAL RATING SUB-TOTAL DISSATISFIE D RATING SUB-TOTAL V. DISSATISFIE D RATING SUB-TOTAL TOTAL RESPONDEN T MEAN MEAN
1 28 5 140 28 4 112 28 3 84
2 29 5 145 28 4 112 17 3 51
3 20 5 100 18 4 72 29 3 87
4 28 5 140 44 4 176 21 3 63
5 22 5 110 32 4 128 27 3 81
6 42 5 210 31 4 124 18 3 54
7 30 5 150 35 4 140 26 3 78
8 8 5 40 16 4 64 27 3 81
9 36 5 180 27 4 108 23 3 69
10 24 5 120 32 4 128 18 3 54
11 32 5 160 42 4 168 19 3 57
12 46 5 230 32 4 128 19 3 57
13 55 5 275 28 4 112 17 3 51
6 2 12
16 2 32
25 2 50
5 2 10
10 2 20
4 2 8
5 2 10
29 2 58
9 2 18
16 2 32
5 2 10
3 2 6
0 2 0
12 1 12
10 1 10
8 1 8
2 1 2
9 1 9
5 1 5
4 1 4
20 1 20
5 1 5
10 1 10
2 1 2
0 1 0
0 1 0
360 3.6 4
350 3.5 4
348 3.4 8 3
401 4.01 4
382 3.8 2 4
263 2.6 3 3
380 3.8 4
344 3.4 4 3
397 3.9 7 4
421 4.21 4
438 4.38 4
Data interpretation
1. Is shopping on the internet saves time? People agree to this statement because shopping on internet actually saves times. They can access the internet 24*7*365.There is also no need of visiting the physical location. 2. You prefer traditional/conventional shopping to online shopping? People agree to this statement because E-commerce is still at nascent stage in India.Still people hesitate to shop online because of hidden charges and security issues. 3. Is it more difficult to shop on the internet? People are neutral to this statement because out of the sample we can conclude that some of them are computer literate and if they are tech savvy then only they can explore various features available.
4. Will you prefer online shopping only if online prices are lower than actual price.? People agree to this statement because online shopping provides them huge discounts and extended sales duration which invokes customer to make purchases.
5. A long time is required for the delivery of products and services on the internet? People are neutral to this statement because in online sales, delivery is done keeping in mind that many of them have distant physical locations,which usually takes around 24hrs.
6. Is Selection of goods available on the internet is very broad? People agree to this statement because by viewing the websites regarding the products, they receive ample of characteristics of products.
7. The information given about the products and services on the internet is sufficient? People agree to this statement because of all the information which influences the buying decisions are present.
8. Is Online shopping as secure as traditional shopping? People are neutral to this statement because people there are getting aware about the secure transactions and in busy schedules it is easy to select wide variety of products online and nowadays people are switching to the modes of payments. 9. While shopping online, you hesitate to give my credit card number? People are agree to this statement because some of them are insecure about the transaction being processed and nowadays, people are switching to the modes of payments. 10.Does the fact that only those with a credit card or bank account can shop on the internet is a drawback? People are neutral to the statement because people are still unaware of the other payment options and some of them dont even have a credit card. These days people are also availing cash on delivery options also. 11. You would be frustrated about what to do if you are dissatisfied with a purchase made from the internet? People are agree to this statement because people think that they made a wrong choice of doing a transaction on internet and moreover some websites provide 15 day exchange offer which majority doesnt want to avail because of their impatient behavior and moreover some people are also not aware about this facility. 12.Do you think Reputation of the company is an important feature while shopping online? People agree to the statement because everybody who shops online for them, brand matters as they are quality products and also the stores are offering huge discounts for promoting their brand.
13. Do you think Guarantees and Warrantees offered by a company is another important feature while shopping online? People agree to this statement because this guarantees and warrantees provide satisfaction to the buyers as in case if there is any defect in the product,the product can be replaced.
Findings
Following are the findings that are drawnfrom the study: Respondent taken for this study are those who are purchasing online products in their daily life. 51% respondents are male &rest are females. Mostly respondent use internet less than 1 hr everyday 30% of the respondents very oftenly used internet for online shopping. 70% of respondents use internet prior to the purchase of product. Clothes followed by flowers are the commonly products purchased on internet. 45% of respondets are willing to spend between Rs. 1000-2000. 95% people agrees that shopping at internet saves time. Mostly people agreed that traditional shopping is better than online shopping. 50% respondents feel that online shopping is as secure as online shopping. .
Conclusion
Recommendations
As we came to know after researching on this topic we recommend that, the online sellers have to make their payment transparent, and as people are coming on their sites and they are buying their products , so retailers have to give more discounts to their customers so that they can visit again and again to their site , and it also helps to make people more aware about the low rick shopping of the net, and one more thing is that there should be transaction of money is very slow they have to make it fast so that customer dont have to face much problem to pay for the product, if customer is going to face some problem he is not going to visit our site and buy product .Following implications should be followed Discount prices A transfer and reliable retailer Fast transactions Focus on customer satisfaction
Costs can be incurred in producing the paper for questionnaires or the equipment for an experiment of some sort. In order to be done properly, primary data collection requires the development and execution of a research plan. It takes longer to undertake primary research than to acquire secondary data. Some research projects, while potentially offering information that could prove quite valuable, may not be within the reach of a researcher. By the time the research is complete it may be out of date. Low response rate has to be expected.
References
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