Consumer Perception Towards Online Shopping in India Essay

1.1 macrocosmThe descends of earnings mathematical functionrs ar increasing beca phthisis of the admissionibilities of technology, the availability of schooling, and the ability to move d unmatchable the net profit increase and evolve. The obvious capabilities of the internet include itinerary for gathering information, buying a product, or rendering a service. These advances in net profit technology allow for the expansion of shop options beyond tralatitious methods that may be more than sentence consuming. Issues with having to physically gather information with offline shop methods be alleviated, and guests are better able to efficiently function their time.For instance, instead of having to physically visit different stores to compare prices or imprecate on circular ptype Ahlets in newspapers, a consumer is able to search and repossess regarded information by dint of the meshing. The net profit explosion has opened the doors to a new electronic world. C onsumers are now able to use the Internet for a variety of purposes such as investigate, communication, online banking, and even shop. With such advantages, the Internet is rapidly becoming the main method of communication and of conducting business conveniently. With a growing count of households turning towards the Internet and the world of e-commerce to shop, invest, bring around payments, and do online banking, new technological advancement result have to come slightly to make these transactions secure.Electronic retailing or online shop, is obtain on the internet without the consumer having to visit a physical store. With the increased use of the internet, the cathode-ray oscilloscope for the online shopping is growing. A In 2012, 9.6 jillion Australians old over 15 forms en give make online shopping leverages, according to the la streak look into by PwC and Frost & Sullivan (2012). Over the next 12 months, 88% of online shoppers in Australia are expecting to m aintain or increase their online expenditure, indicating that on that point is solidity momentum in online shopping uptake. This continual rapid growth in Australia and offshore is driving structural changes in the traditional retail model. US online population will increase nearly 50%, from 1471.5 million in 2001 to 210.8 million by 2006 (Cumulative Annual Growth Rate of 8.2%) and online retail gross revenue 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 booning more than 605 million users.In India withal the internet user carnal 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 gullgles and tablet PCs according to Internet and quick Association of India (IAMAI) and IMRB (Dec 2012). According to them India is expected to have close to 165 million diligent Internet users by March 2015, up from 87.1 million in December 2012 as more people are accessing the clear through mobile devices and dongles.Nearly 60% of online users in India vi putd a retail order in November 2011, with the number of online shoppers increasing 18% in the past year said com Score in a explore announce.According to the report on visitation to the top retail and verifier sites in India, coupon sites are rapidly gaining in popularity, with 16.5% of the Indian online population visiting the folk in November, led by Snapdeal.com and Mydala.com. In November, 27.2 million online users in India, aged 15 and older, accessed the retail category from a home or cipher computer, an increase of 18% from the previous(prenominal) year, as consumers continue to turn to the wind vane to shop for and purchase items and retailers continue to increase their online visibility through quick marketing campaigns. (www.moneylife.in, Feb 28th, 2013). in that respect are me very advantages of doing online shopping like at that place is no geographical boundary-a consumer in Delhi scum bag shop for something which an e-store in Punjab is offering, in that location is no time restrictions- the shopping is 247, the payment is online-there is no need to even handle the capital. Despite the advantages of online shopping all the consumers are not fragmentiseicipating in online transaction. Many business firms are more and more businesses continue to establish an online presence, they are vexing that some consumers are lock up reluctant to shift in that analogous direction. For various consumers there are still concerns with protective covering and passing personal data over the Internet. There is a disparity amongst the number of consumers who visit a site and the number of actual purchases being make.Despite the millions of people who use the Internet everyday and visit various shopping sites, the number of consumers who do not abandon their shopping carts yet actua lly pass with flying colors a purchase averages to only 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 setting. As such, it is all important(p) for online businesses or offline businesses provoke in venturing into the online market to understand their consumers perceptions, online and offline, and what agentive roles fix their shopping decisions. With better pinch of what divisors play into consumer decision making in making transactions online or offline, retailers and businesses goat be better gear themselves to serving their clients in any of the shopping venues.1.2 OBJECTIVES OF THE STUDYTo know the demographic profile of the customers and its impact if any on the online purchasing.To know the factors affecting t he perception of Indian online buyers.CHAPTER II writings REVIEWThis part includes the Review of previous studies, articles and conceptual textile for the link studies. More analysis is not sufficient to present real frame persist of the break down. So review of related materials should be deal with to give the research a clear vision, past study and knowledge provides fixation to the present day. Review of literature includes the following topics2.1 Conceptual Framework2.2 Reviews from Previous Studies2.1 abstract FRAMEWORKAs Internet usage is increasing, so is online shopping oddly in those countries whose Marketing infrastructures are well developed. Customers can 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 to a fault from advanced electronic devices such as Palm Pilots and mobile phones. The growth of Internet technology in India has en ormous potential as it reduces the costs of product and service saving and extends geographical boundaries in convey buyers and sellers together.Also, due to an increase in high-speed Internet access connections, demean 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 progressively 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 relieve 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 expression of consumer. It is not sure that all the people who visit websites do make online purchase. This will also focus on the point that what is the consumes perception towards online shopping and their object to make purchase are not only change by the ease of internet, usefulness and enjoyment but also touch on by the also by exogenous factors like consumer traits, situational factors, product characteristics, previous online shopping experiences, and trust in online shopping.The other thing that the research will focus is that do the demographic factors make any twine on the online shopping. This research will focus on the point that do these demographic factors like age, gender, income level etc really make any influence on the buying appearance of the consumers. Not only on the demographic factor that this research will focus on, will also try to find whether there is any relationship between the customers and the website feeling. Do these online shopping websites tone of voice make any influence on the buying intention of the buyers?2.2 REVIEWS FROM previous RESEARCHUPADHYAY.P AND KAUR J (2006),Analysis of Online obtain Behaviour of Customer in Kota City. This study has cerebrate on factors which online Indian buyers keep in mind while shopping online. The objective of the study was to create an sentience 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 travelling tickets and clothing rest 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 intuition towards online shopping an experiential study of Indian consumers said that the perception of online shoppers is sovereign 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, shipment and web security of online purchasing exhibit significant relationships with their online buying intention. Web security was the major concerning factor to influence the online shopping. They have a fear that their important 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 marketing environment affects the itinerary 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 help 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 show that 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 differently by consumers who prefer online shopping and those who prefer offline shopping. According to him there are quintuplet factors which that the two group consumers perceived 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 uncertainness 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 aft(prenominal) all the finding he says that Being aware of what perceptions drive consumers to break apart and prefer one avenue of shopping to another allows businesses to better run to consumers, thus helpi ng them attract and retain customers.RASTOGI.A.K (2010), A study of Indian Online Consumers and their acquire Behaviour made an attempt to study the buying demeanor 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 analogy shopping between products, as well as, online stores.VAGGELIS SAPRIKIS, ADAMANTIA CHOULIARA AND MARO VLACHOPOULOU (2010) conducted the research on Perceptions towards Online obtain Analyzing the Greek University Students Attitude ob served the significant differences between the 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 cover 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 Behavior towards Online Shopping Stores in Malaysia has foc utilize 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 decision four factors (pro motion, attractiveness, believability, and originality) dont significantly influence online shopping intention which indicate that advertisement doesnt have an important inwardness 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 earnings 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 of an Indian consumer is still the same of checking the product physically before purchasing it, which creates a mental burial vault 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 on-line(a) 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 ground 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 moldiness use relevant variables and factors which the research has identified. The organizations can prioritize the consumer implicit and ex plicit requirements in online shopping environment. The results can also be used by various organizations to identify 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 factor outs Affecting on Online Shopping Behavior of Consumers where the examined the factors affecting on online shopping behavior of consumers. They created many system and these hypothesis testing indicated that financial risk and non-delivery risk has negative aftermath 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 straightforward contributi on in online shopping. Also, subjective norms have positive effect on shopping behavior. This way 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 planning for better effectiveness of their marketing program. This means that marketing specialists should target this society in their marketing strategy formulation for better effectiveness 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 aff ect consumer perceptions of their online purchasing experiences. Online buyers have different viewpoints of these four factors. Website design has the highest rating score, followed by website customer service. Website reliability is ranked third, and the lowest is website security. Also they suggested that with online shopping, consumers can shop the intact product-assortment with militant prices. In order to consoli season this advantage, E-retailers should choose more celebrated products or brands to market online. Branded products and services are usually sentiment by customers as having better qualities.They said that the online shopping company should generate the regular online buyers as they shop most frequently and they should make the sought after products available and the purchase transaction easy and also obtain the competitory prices in order to retain their regular customers and increase their loyalty towards the company. As trial customers are interested in br owsing on the website perchance they see online shopping as enjoyment and look for the potential pleasure 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 sequent shopping behavior they will browse more, make more unplanned purchasing, and look for more stimulating products. In the face of severe 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 pleasant aspect of online shopping in their promotions for trial online buyers and then create the competitive advantage.CHAPTER IIIRESEARCH METHODOLOGYThe data for the study was gathered through a structured questionnaire. The questionnaire consists of two parts. The first part of the questionnaire included q uestions about their demographic profile like age, Education, income, living area and gender. The second part consisted of questions measuring all the variables which are used to measure the online shopping. All the questions were utilizing on a Likert scale ranging from 1= potently disagree to 5 = strongly agree.Research Design has been classified into the following subsectionsSAMPLE SIZE- Till the date of the submission of this interim report, about 100 questionnaires was distributed through e-mail and accessible networking sitesSAMPLING PROCEDURE- The respondents were selected by the random sampling.DATA COLLECTION PROCEDUREThis _primary_ (first hand, or collected 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 sample of the questionnaire is showcase d in AnnexureANALYSISDescriptive statistical research technique has been used in the study and statistical packages like SPSS and Microsoft pass by have been used for the analysis.TOOLS USEDCHI -SQUARE TEST A chi-square test is used when you want to see if there is a relationship between two categorical variables. In SPSS, the chisq option is used on the statistics sub demand 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 inwardly 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 practically larger number of manifest variables. Factor analysis can also be used to generate hypotheses regarding causal mechanisms or to screen variables for subsequent analysis