A Study on changing Consumer Perception towards Online

Shopping in India
1. Introduction
Online shopping has revolutionized the business world by making everything
anyone could want available by the simple click of a mouse button. With the
rising internet penetration and broadband availability, and growing culture of
Smart phones and tablets, people find it convenient and easy to shop from the
comfort of their home or office. A new joint study and research by Assocham and
Grant Thornton concludes that the Online shoppers in India are expected to
increase from 20 million in 2013 to 40 million in 2016, as an additional 200
million Indians will access the Internet in the next three years, with majority of
them coming online through smart phones.
In terms of top product categories ever purchased online, apparels & accessories
(84%) was among the top category, followed by electronics (71%), beauty &
personal care (64%), books (62%) and household products (61%). The research
also highlighted that baby products (39%), health & nutrition (43%) product
category were also becoming popular with online buyers. The frequency of
purchase was also higher for categories like apparels & accessories (34%),
beauty & personal care (33%) products in comparison to electronics (28%),
which also makes these categories more profitable because of repeat purchase.
Why customers buy online:

Lack of shopping time to visit brick and mortar store

Extensive Product Mix choice
Fast and easy shopping process
24 x 7 shopping
Can compare the same product in terms of prices and reviews
between portals
Cash on delivery benefit
Competitive pricing and Heavy discounts on products

Consumer perception refers to how customers view a certain product based on

their own pre drawn conclusions. When the customer makes his buying decision,
he evaluates the benefits he perceives from a particular product and compares
them with the costs. Perceptions toward online shopping is not only based on the
individual consumer traits, ease of use of the portal, product usefulness, and
enjoyment of the shopping process, but also on external factors like situational
factors, product characteristics, previous online shopping experiences of self and
peers and influencers, and trust in online shopping in general. To attract the
Internet users to online shopping, it essential to understand how the consumer

perceives online purchases and towards the products and service offered online
by the marketers.

2. Objectives of this study :

1. To identify and then analyze the factors that influence consumers online
buying behavior.
2. Based on the data collected, both primary and secondary, predict the future
of online shopping in India and recommend changes that would be required to
be made by e-com companies to attract more online consumers.
3. To forecast the changes that needs to be brought about by brick and mortal
stores to effectively compete with e-com companies and ensure customer
retention.
3. Scope of the Study
The theoretical scope of the study includes the need of virtual markets, the role
and scope of start ups in this segment, the evolution of popular e-com
companies and online portals, their role in influencing the consumption pattern
and habits, merits and demerits of e-markets, the evolution of the online
shoppers in the past decade in India, and the factors that influence consumer
buying behavior of online shoppers . The scope of the study is listed as below :
1. The Study is to be conducted among the Internet users.
2. The study is to be conducted in Kerala State.
3. The Study is based on a Schedule of Questions.
4. The study covers the potential and scope of e-com in India for the next
decade.

4. Methodology of the study

4.1.

Research Problem

Many factors contribute towards the evolution of online shopping in India during
the recent times. The wide penetration and reach of internet to even the remote
corners of the country is a main factor as the availability of the media led to the
evolution of many new e-commerce web portals. The limitations of brick and
mortar stores like product availability according to diverse consumer tastes and

preference also opened up new opportunities for consumers to source their

preferred product from the wide range of choices as available online. Over and
above that, the multiple payment options which are both safe and secure for
product purchase online coupled with the increase in marginal income and the
emergence of the new middle class in tier 2 and 3 cities who are cramped for
time due to their work schedules, also contributed directly to latent shift of
these consumers to online for shopping. The emergence of multi brand portals
that provide easy return and payment refund in case of a bad purchase also
increased consumer confidence to shop online. The lack of proper infrastructure
in the country also contributed as shoppers often found commuting to and
parking at their favorite shopping mall difficult. Last but not least, choice of
international brands as available online for any product also opened up
consumers to online shopping as they now dont need to compromise in their
purchase decision in any manner whatsoever.
4.2.

Sampling

As the size of the population is very vast, we can use random sampling that is
limited to internet users. The sample size to be taken is 200 respondents
residing
at
Trivandrum
in
Kerala,
India.
4.3.

Data Collection

This research includes primary as well as secondary data. The primary data will
be collected by administering a structured questionnaire to consumers of
different demographic segments within the study area i.e. from students,
working professionals and Business Class people, who use internet for shopping.
Secondary data will be collected from Various Journals, Online studies,
Newspaper and Internet.
4.4.

Data Analysis

The primary data collected will be tabulated and will be analysed to arrive at
the perception of consumers towards online shopping by means of statistical
techniques. If the data require more sophisticated methods of analysis, it will be
used.
4.5.

Report Preparation

The report of the study will be prepared on the basis of the findings by making
necessary recommendations. Report will contain chapters depending on the
findings.
5. Rationale of the Study

Selling on internet has a large potential due to the very high targeting
possibilities. As a result of this exceptional development, the online selling
industry is becoming interested in the use of internet to reach their customers.
Hence a better understanding of online shopping is critical to the effective use of
this channel of approach to the consumer. It is especially important to know what
is the consumers perception towards online shopping, benefits perceived by
them and what factors attract them towards online shopping.