Consumer Behavior Towards E-Retailing & its Characteristics

Project Guide: Submitted by:Dr. Naresh Patel Hunny Goyal (14)

Introduction

“Online shopping” as the term suggests, refers to the purchase of products or services over the internet. It can be used both for B2B and B2C transactions.

Companies use 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 feed back and also to conduct satisfaction surveys with customers.

Customers use the Internet to buy the product online, to compare prices, product features and use the store’s after sales service facilities.

Objectives of the study

Primary Objective: Studying the Consumer Behavior towards E-Retailing in Gujarat

Secondary Objectives: To get the In depth view of the Indian customers about the E-retailing Figuring out the Factors affecting the Indian customers which motivates

them and restricts them from Online Shopping.

Research Methodology

Source of Data: Primary Data and Secondary data Research Type: Descriptive research Data Collection Method: Questionnaire Sampling Unit: Individual Consumers Size of Sample: 217 Sampling technique: Convenience sampling Data Analysis: Factor Analysis, Chi-Square & MS Excel

Research Hypothesis

Ho1: There is no significant difference between Gender and attitude towards online shopping.

Ho2: There is no significant difference between Age and attitude towards online shopping.

Ho3: There is no significant difference between Education and attitude towards online shopping.

Ho4: There is no significant difference between Income and attitude towards online shopping.

Factor AnalysisRotated Component Matrix  Component  1 2 3It saves your time 0.256 0.772 0.054

it takes more time to search specific product 0.365 0.704 0.178

It gives me ease of shopping at home 0.423 0.804 0.136

It does not require travelling to far off distance 0.235 0.725 0.42

Speed of internet affects your online shopping 0.162 0.188 0.782

It takes a long time to deliver products 0.094 0.123 0.847Shopping 24x7 0.832 0.276 -0.038

Ease to make payment assistance 0.767 0.353 0.138

Lack of physical evidence affects my purchase decision 0.783 0.413 0.03

I think that online shopping results in monetary benefits 0.852 0.298 0.128

can customize the products according to my specification 0.826 0.22 0.273

get better discounts & offers on internet 0.858 0.209 0.034

The actual products do no match the products shown on 0.788 0.332 0.182

Wide choices of brands to choose 0.849 0.247 0.189

I do not get much variety in products 0.286 0.22 0.273

Result:

As we can see in the table, in the Factor 1, 3 items that are having max value shows the monetary benefits and wide variety of brands. So, this factor is labelled as “Money & Assortment Benefits”.

On the Factor 2 Column, 3 items having max value above 0.5 shows time & convenience shopping. This factor is labelled as “Efficient & Convenient Benefits”

On the Factor 3, 2 items showing that internet speed and long delivery time issues which are important. This factor is labelled as “Connectivity & Delivery Issues”

Chi-Square:Chi-Square Tests

  Value df Asymp. Sig. (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square .069a 1 .792    

Continuity Correctionb .014 1 .907    

Likelihood Ratio .069 1 .793    

Fisher's Exact Test       .884 .453

Linear-by-Linear Association .069 1 .793   

N of Valid Cases 217        

Gender Analysis

Interpretation: As we can see in the above tables, .453 > 0.05, so null hypothesis is not rejected and there is no significance difference between the gender & online shopping behavior.

Age Group Analysis

Interpretation: As we can see in the above tables, .568 > 0.05, so null hypothesis is not rejected and there is no significance difference between the age & online shopping behavior. So there is no effect of age on the consumer behavior towards online shopping.

Chi-Square Tests

  Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 2.021a 3 .568

Likelihood Ratio 1.922 3 .589

Linear-by-Linear Association 1.891 1 .169

N of Valid Cases 217   

Chi-Square Tests

  Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 3.537a 3 .316

Likelihood Ratio 3.330 3 .343

Linear-by-Linear Association 2.433 1 .119

N of Valid Cases 217   

Education level Analysis

Interpretation: As we can see in the above tables, .316 > 0.05, so null hypothesis is not rejected and there is no significance difference between the Education & online shopping behavior.

Chi-Square Tests

  Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square .001a 2 .999

Likelihood Ratio .001 2 .999

Linear-by-Linear Association .000 1 .997

N of Valid Cases 217    

Income Analysis

Interpretation: As we can see in the above tables, .999 > 0.05, so null hypothesis is not rejected and there is no significance difference between the Income & online shopping behavior.From this we can say that there is no effect of income on the consumer behavior towards online shopping.

Excel Analysis

42%

58%

Gender Analysis

Female

Male31%

28%

23%

18%

Age Analysis

18-25 years

26-30 years

31-35 years

36 & above

45%

1%

1%

53%

Level of Education

Graduate

Interme-diate

Matricu-lation

Post Grad-uate

21%

59%

20%

Income Analysis

> 15000

15000-25000

25000 or Above

31%

39%

30%

Time Initiation of Shopping

1-3 years

Less than 1 year

More than 3 years

39%

29%

32%

Frequency Of Shopping

Frequently (once a month)

Once in a year

Once in six month

21%

22%

28%

20%

8%

Things which Customers Prefer to shop the most

Books Clothes & Accessories Mobiles & Electronics Music & Softwares

28%

13%

20%

13%

25%

Most Shopped Online Sites

Flipkart

Snapdeal

Myntra

Homeshop18

Others

51%41%

8%

Payment Mode Analysis

Cash on De-livery

Debit/Credit card

Netbanking

24%

26%

6%

30%

10%

5%

Reasons For Shopping

Saves TimeSaves MoneyMuch Easier ShoppingMore EfficientFriend Re-ferralsOthers

21%

8%

57%

14%

Things Which E-Retailers must Improve

After Service

Website Security

Delivery on Time

Packing of Products

Compan

y Pro

file & Bra

nd Iden

tity

Securit

y Cer

tifica

ted

Customer

Servic

e

Detail

ed pro

duct In

fo

Variet

y of p

roducts

Cost o

f Deli

very

Speed of

Deli

very

Simplic

ity of

purchas

e pro

cess

Prote

ction

of priv

acy

Ability t

o tra

ck th

e pro

ducts

Web

site r

espon

se sp

eed

Web

site i

nterfa

ce

Perso

nalize

d offer

s/ads

Features valued by Customers

95%

5%

Do they Continue to Shop Online?

Yes

No

Bad Custo

mer Ser

vice

High Sh

ipping Cos

t

Warra

nty C

laims

Refu

nd Poli

cy

Long

Deli

very

time

Low Tr

ustwor

thines

s

Prod

uct Non

perfor

mance

as sh

own

Barriers in Online Shopping

Major Findings

Majority of the Online Shoppers are Male and Age does not play major role in their behavior towards online shopping.

Most of online shoppers are well educated having degrees of Graduation & Post Graduation, while income does not play major effect.

Most of the Online shoppers have adopted online shopping recently. Electronics, Apparels & books are among the products that most

consumer purchase online. Money benefits, wide variety of products, convenience, Internet

connectivity & Delivery issues are important factors that consumers consider while shopping online.

Limitations of the study

The Survey was conducted among selected people and it doesn’t reflect the real opinion of the entire population.

The respondents give opinion differently at different times because of their psychological temperaments. This will affect the survey.

It is difficult to induce the respondents to provide complete information. The sample size itself is relatively small. To accurately evaluate

consumers’ perceptions of online shopping, a larger sample size is desirable.

Conclusion

Online Shopping is the future of shopping which is not yet fully adopted by the consumers due to the barriers like Safety & Long Delivery time issues.Having great benefits to offer like Monetary benefits, Convenient & Time saving, Wide variety & Personalized offers etc. Thus, It is apt to say that “The future is here. It's just not widely distributed yet”- William Gibson

Thank You…