Consumer Perception Towards Online Shopping in India Essay

1.1 INTRODUCTIONThe f tout ensembles of cyberspace determinationrs argon en salient because of the recoveribilities of technology, the availability of information, and the ability to interact through the net increase and evolve. The obvious capabilities of the profits include road for gathering information, purchasing a product, or rendering a assistance. These advances in mesh spirt technology on the wholeow for the refinement of obtain options beyond handed-down modes that may be more than meter consuming. Issues with having to sensiblely gather information with offline shop class methods atomic physique 18 alleviated, and customers atomic public figure 18 damp able to efficiently use their cartridge clip.For instance, instead of having to physically chit-chat dissimilar stores to compare prices or rely on circular pamphlets in newspapers, a consumer is able to search and retrieve needed information through the mesh. The Internet explosion has opened th e doors to a new electronic world. Consumers are straighta federal agency able to use the Internet for a variety of purposes such as inquiry, communication, online banking, and even shop. With such advantages, the Internet is quickly becoming the main method of communication and of conducting business conveniently. With a growing number of households turning towards the Internet and the world of e-commerce to shop, invest, make fees, and do online banking, new technological advancement go away hurt to come round to make these transactions secure.Electronic retail or online obtain, is obtain on the profits without the consumer having to picture a physical store. With the increased use of the internet, the scope for the online obtain is growing. A In 2012, 9.6 meg Australians aged over 15 years depart make online shop gets, match to the la trial look for by PwC and Frost & Sullivan (2012). Over the adjacent 12 months, 88% of online shoppers in Australia are expecting to maintain or increase their online expenditure, indicating that thither is solid momentum in online obtain uptake. This continual rapid growth in Australia and offshore is driving structural changes in the traditional retail model. US online community will increase nearly 50%, from 1471.5 meg in 2001 to 210.8 million by 2006 (Cumulative Annual Growth assess of 8.2%) and online retail sales will grow from US$47.8 billion in 2002 to$130.3 billion in 2006. Similarly WIPO (2007) cited that about 10% of the worlds population in 2002 was online, re dumbfounding more than 605 million users.In India excessively the internet user base has grown to an impressive number from 87.1 million by December 2012 from 78.7 million users in October 2012, who accessed Internet through dupegles and tablet PCs according to Internet and Mobile Association of India (IAMAI) and IMRB (Dec 2012). jibe to them India is expected to have finish to 165 million mobile Internet users by March 2015, up from 87.1 million in December 2012 as more the great unwashed are accessing the clear through mobile devices and dongles.Nearly 60% of online users in India visited a retail site in November 2011, with the number of online shoppers increasing 18% in the past year tell com Score in a research report.According to the report on visitation to the top retail and voucher sites in India, coupon sites are rapidly gaining in popularity, with 16.5% of the Indian online population visiting the category in November, led by Snap escape.com and Mydala.com. In November, 27.2 million online users in India, aged 15 and older, accessed the retail category from a ingleside or work computer, an increase of 18% from the previous year, as consumers prevent to turn to the web to shop for and get items and retailers move on to increase their online visibility through active merchandising campaigns. (www.moneylife.in, Feb 28th, 2013).There are m each advantages of doing online shop wish well there is no geographical boundary-a consumer in Delhi apprize shop for virtually thing which an e-store in Punjab is offering, there is no time restrictions- the obtain is 247, the payment is online-there is no need to even contend the cash in. Despite the advantages of online shopping all the consumers are not participating in online transaction. M whatsoever business firms are more and more businesses abide to establish an online presence, they are finding that some consumers are still reluctant to shift in that very(prenominal) direction. For various(a) consumers there are still concerns with security measures and passingpersonal entropy over the Internet. There is a disparity between the number of consumers who visit a site and the number of actual leverages being made.Despite the millions of people who use the Internet e actuallyday and visit various shopping sites, the number of consumers who do not abandon their shopping carts exactly actually established a bribe averages to unless about three percent. This leaves a large portion of the Internet population as non-participants in online transactions as compared to those who fully complete transactions online and make purchases. Instead, these non-participants may abandon the purchase completely or fulfill the transaction in an offline roundting. As such, it is primal for online businesses or offline businesses interested in venturing into the online foodstuff to understand their consumers perceptions, online and offline, and what factor outs twist their shopping decisions. With fall apart understanding of what factors play into consumer decision reservation in making transactions online or offline, retailers and businesses net be better gear themselves to part their customers in either of the shopping venues.1.2 OBJECTIVES OF THE STUDYTo know the demographic write of the customers and its impact if any on the online get.To know the factors necessitateing the perception of Indian online bu yers.CHAPTER IILITERATURE REVIEWThis part includes the Review of previous studies, articles and abstract framework for the related studies. More analysis is not sufficient to present real framework of the pack. So review of related materials should be deal with to give the research a clear vision, past convey and companionship provides foundation to the present day. Review of literature includes the following topics2.1 Conceptual framework2.2 Reviews from Previous Studies2.1 CONCEPTUAL FRAMEWORKAs Internet usage is increasing, so is online shopping particularly in those countries whose Marketing infrastructures are well developed. Customers send news show shop at anytime and have access to products not available in their geographic region. Moreover, they are now able to access the Internet, not only from their personal computers, but in like manner from advanced electronic devices such as Palm Pilots and mobile phones. The growth of Internet technology in India has enormous potential as it reduces the costs of product and service delivery and extends geographical boundaries in bringing buyers and sellers together.Also, due to an increase in high-speed Internet access connections, lower connection costs, and increasing consumer competence, e-commerce activity will continue to grow as the availability and ease with which the Internet provides consumers the ability to handle needed tasks increasingly develops. However, not all consumers are turning to the Internet for shopping. While the number of Internet users who have made a purchase at one time is more than half in the united States, this does not explain the disparity between the number of visits websites recorded and the number of actual purchases made online.This research mainly talks about the factors that affect the consumers online shopping manner of consumer. It is not sure that all the people who visit websites do make online purchase. This will besides focus on the elevation that what is the consumes perception towards online shopping and their object to make purchase are not only affected by the ease of internet, usefulness and enjoyment but also affected by the also by exogenous factors like consumer traits, situational factors, product characteristics, previous online shopping experiences, and religion in online shopping.The other thing that the research will focus is that do the demographic factors make any bring on the online shopping. This research will focuson the flush that do these demographic factors like age, gender, income level etc really make any influence on the get behavior of the consumers. Not only on the demographic factor that this research will focus on, will also try to find whether there is any kinship between the customers and the website pure tone. Do these online shopping websites quality make any influence on the buying intention of the buyers?2.2 REVIEWS FROM PREVIOUS seekUPADHYAY.P AND KAUR J (2006),Analysis of Online shop beh avior of Customer in Kota City. This study has concentrate on factors which online Indian buyers keep in mind while shopping online. The objective of the study was to create an awareness of e-commerce and make people interested in internet commerce. According to the study, they found that the most preferred product of online buying is traveling tickets and clothing remains the least preferred choice of online shoppers and most of the consumers who have experienced online shopping are very satisfiedZIA UL HAQ (2009) in her research on Perception towards online shopping an empirical study of Indian consumers said that the perception of online shoppers is free-living of their age and gender but not independent of their qualification & gender and income & gender. According to the researcher consumers perceptions of the customer service, allegiance and web security of online purchasing exhibit significant relationships with their online buying intention. Web security was the major co ncerning factor to influence the online shopping. They have a fear that their pregnant documents passwords can be hacked due to online shopping, so the major concern of consumers is about the web security.She also says that Marketers need to realize that the online market environment affects the way consumers view and develop relationships. During her study she found that Indian consumers considered that their online purchasing will be influenced by good quality website. Thus it is believed that overall website quality does suffice in enhancing the consumers to buy online. Also commitment is the important factor that affects online buying and most of the consumers are concerned about on-time delivery of their products. The results of this study showthat there is a significant association between commitment and online shopping.CORPUS CHRISTI(2009) in his research on The perception of consumer on online shopping has provided some of glimpse about the consumers mind as what factors are sensed polarly by consumers who prefer online shopping and those who prefer offline shopping. According to him there are fin factors which that the two group consumers comprehend differently. These factors are (1) perceived risk with online shopping, (2) past experience with online shopping, (3)perceived benefits of online shopping, (4) perceived ease of online shopping, and (5) perceived hesitation of online shopping. Through these factors the business firms should be aware of their online consumers perception and of what preference for online and offline shopping avenues. Focusing on these factors the researcher thinks that the firms can don necessary work to attract and retain more and more customers. In his research afterward all the finding he says that Being aware of what perceptions drive consumers to scavenge and prefer one avenue of shopping to another allows businesses to better give to consumers, thus helping them attract and retain customers.RASTOGI.A.K (2010 ), A study of Indian Online Consumers and their get Behaviour made an attempt to study the buying behaviour of Indian online consumers in his research. According to his study about 44% students use Internet in India and overall 72% of young people access Internet on regular basis. The findings of the study shows that ratio of male consumers is very high in online shopping and most of the respondents pay in cash on delivery. This research shows that online shopping has very bright future in India. . Perception towards online shopping is getting better in India. With the use of internet, consumers can shop anywhere, anything and anytime with easy and safe payment options. Consumers can do compare shopping between products, as well as, online stores.VAGGELIS SAPRIKIS, ADAMANTIA CHOULIARA AND MARO VLACHOPOULOU (2010) conducted the research on Perceptions towards Online Shopping Analyzing the Greek University Students Attitude observed the significant differences betweenthe two groups of respondents that is online shopping adaptors and online shopping non adaptors. From their research they concluded that adopters had higher expectations from online shopping on issues relating to privacy policy and risk. Also they identified between adopters and non-adopters regarding their particular perceptions on advantages and problems of online shopping.MEHRDAD SALEHI(JAN 2012) in her study on Consumer Buying look towards Online Shopping Stores in Malaysia has foc apply on nine independent variables namely appearance, quick loading, security, sitemap, validity, promotion, attractiveness, believability, and originality that influence the buying behavior on consumers while doing online shopping. During her research she found that first five factors influence consumers towards online shopping and security is the factor that contributes most towards online shopping. According to her the pull round four factors (promotion, attractiveness, believability, and originality) dont si gnificantly influence online shopping intention which indicate that advertisement doesnt have an important effect on online shopping. Security and validity of website were the one that influences the online consumers. Also attractiveness had the minimum influence on online shopping intention.KANWAL GURLEEN( MAY 2012) in his study on Consumer Buying Behavior towards Online Shopping, the case of punjab stated that Price consciousness, Convenience and Variety, Easy payment options and Challenges of Online Shopping are the four major factors that have significant influence on the perception of the online consumer toward online shopping. As that of the other researchers on this topic, he also found the same problem that the consumers are not able to trust the websites as they have to give their credit card details. Some of the websites the customers dont feel trustworthy. Also the online purchases take a longer time in shipments and deliveries. The researcher found that the psychology o f an Indian consumer is still the same of checking the product physically before purchasing it, which creates a mental hurdle for online shopping.DAHIYA RICHA (2012), from her research on Impact of demographic factors of consumers on online shopping behavior A study of consumers in India found that gender impacts frequency of online shopping positively and Family Size impacts overall spend on on-line shopping. Her study somewhat suggested that Indian Consumers have perceived online shopping in a positive manner which suggest that online shopping in the agricultural is growing. Despite this the frequency of online shopping is very less. She has also suggested the organizations that to formulate their plans and strategies in the country regarding the online shopping they must use relevant variables and factors which the research has identified. The organizations can prioritize the consumer implicit and explicit requirements in online shopping environment. The results can also be a pply by various organizations to invest their target customer segments.MOHAMMAD HOSSEIN MOSHREF JAVADI1,HOSSEIN REZAEI DOLATABADI1, MOJTABA NOURBAKHSH1, AMIR POURSAEEDI1& AHMAD REZA ASADOLLAHI (SEPTEMBER 10, 2012) conducted the research on, An Analysis of Factors Affecting on Online Shopping Behavior of Consumers where the examined the factors affecting on online shopping behavior of consumers. They created many surmise and these hypothesis testing indicated that financial risk and non-delivery risk has negative effect on the attitude towards online shopping behavior. Which suggest that e-retailers should make their websites safer and assure customers for the delivery of their products.According to them if there has been positive effect attitude toward online shopping on online shopping behavior of consumers it would indicate that considering attitude variables make a substantial constituent in online shopping. Also, subjective norms have positive effect on shopping behavior. Thi s means the more people suggest e-buying to each other, the more this buying method will be popular among people. This makes necessary the use of word of mouth marketing for retailers. Domain specific innovativeness has positive effect on online shopping behavior. This means that marketing specialists should target this society in their marketing strategy formulation for better effectiveness of their marketing program. This means that marketing specialists should target this society in their marketing strategy formulation for bettereffectiveness of their marketing program.CHAO CHAO CHUANG & DR. FU-LING HU (NOVEMBER, 2012) in their research on, An empirical analysis of the relationship between website characteristics and consumer online buying behavior concluded that the website security, website design, website reliability and website customer service are the four main factors which affect consumer perceptions of their online purchasing experiences. Online buyers have different view points of these four factors. Website design has the highest rating score, followed by website customer service. Website reliability is class-conscious third, and the lowest is website security. Also they suggested that with online shopping, consumers can browse the entire product-assortment with competitive prices. In govern to consolidate this advantage, E-retailers should choose more famous products or brands to market online. Branded products and services are usually thought by customers as having better qualities.They said that the online shopping company should induce the regular online buyers as they shop most frequently and they should make the desired products available and the purchase transaction easy and also obtain the competitive prices in order to retain their regular customers and increase their loyalty towards the company. As trial customers are interested in browsing on the website maybe they see online shopping as enjoyment and look for the potential entertainme nt arising from the online shopping experience. The purchase of goods may be incidental to the experience of Internet shopping.If trial online buyers initially have pleasing online shopping experience, they are more likely to continue subsequent shopping behavior they will browse more, make more unplanned purchasing, and look for more stimulating products. In the face of spartan competition and continually increasing customer expectations, e-commerce companies must understand how to identify, help and retain their profitable existing customers. E-retailer should emphasize the enjoyable aspect of online shopping in their promotions for trial online buyers and then create the competitive advantage.CHAPTER IIIRESEARCH METHODOLOGYThe selective information for the study was gathered through a coordinate questionnaire. The questionnaire consists of two parts. The first part of the questionnaire included questions about their demographic profile like age, Education, income, living area a nd gender. The second part consisted of questions measuring all the variables which are utilise to measure the online shopping. All the questions were utilizing on a Likert case ranging from 1= strongly disagree to 5 = strongly agree.Research aspiration has been classified into the following subsectionsSAMPLE SIZE- Till the date of the submission of this meantime report, about 100 questionnaires was distributed through e-mail and social networking sitesSAMPLING PROCEDURE- The respondents were selected by the random sampling.DATA COLLECTION PROCEDUREThis _primary_ (first hand, or put one overed by the researcher, i.e., myself, in the present study) and data was used for the analysis. A questionnaire has been designed to collect the required information. The questionnaires were filled by the respondents through the internet (through emails and social networking sites).A stress of the questionnaire is showcased in AnnexureANALYSISDescriptive statistical research technique has bee n used in the study and statistical packages like SPSS and Microsoft Excel have been used for the analysis.TOOLS USEDCHI -SQUARE TEST A chi-square test is used when you lack to see if there isa relationship between two mat variables. In SPSS, the chisq option is used on the statistics subcommand of the crosstabs command to obtain the test statistic and its associated p-value.FACTOR ANALYSIS FACTOR ANALYSIS Factor analysis attempts to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables. Factor analysis is often used in data reduction to identify a small number of factors that explain most of the variance observed in a much larger number of manifest variables. Factor analysis can also be used to generate hypotheses regarding causal mechanisms or to screen variables for subsequent analysis