Analysis of Consumer Buying Behavior Towards Online Shopping: A Case Study of Kota City-Rajasthan
Analysis of Consumer Buying Behavior Towards Online Shopping: A Case Study of Kota City-Rajasthan
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Deepak Jain | M.B.A. (Marketing) | Vardhaman Mahaveer Open University (VMOU) Kota
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ABSTRACT
The present paper is focus on consumer buying behaviour towards online shopping. In today
scenario there is various method to purchase any product form any shop. But according to
requirements people use various online shopping sites to purchase any product. So based on its
requirements I covered all the market at Kota level in which I analysed about various factor
which are used in online shopping purpose. Specifically, we examine how emotional and
cognitive responses to purchase any product for the first time can influence online consumers'
intention to return and their likelihood to make unplanned purchases. The instrumentation
shows reasonably good measurement properties and the constructs are validated as a
nomological network. A questionnaire-based empirical study is used to test this nomological
network. Results confirm the identity of the online consumer as a shopper and a computer user
because both shopping enjoyment and perceived usefulness of the site strongly predict
intention to return. Our results on unplanned purchases are not conclusive. We also test some
individual and Web site factors that can affect the consumer's emotional and cognitive
responses. Product involvement, Web skills, challenges, and use of value-added search
mechanisms all have a significant impact on the Web consumer. The study provides a more
rounded, view of the online consumer and is a significant step towards a better understanding
of consumer behavior on the Web. The validated metrics should be of use to researchers and
practitioners alike.
Keywords: E-commerce, Customer, Kota, Shopping, TAM (Technology Acceptance Model) and TRM (Theory
of Reasoned Action); Flow Theory; nomological validity; Web skills; value-added search mechanisms; online
consumer behavior.
INTRODUCTION
Online shopping refers to the process of purchasing products or services via the internet. The process consists of
five steps similar to those associated with traditional shopping behavior. In the typical online shopping process,
when potential consumers recognize a need for some merchandise or service, they go to the internet and search
for need related information. However, rather than searching actively, at times potential consumers are attracted
by information about products or services associated with the felt need. They evaluate alternatives and choose
the one that best fits their criteria for meeting the felt need. Finally, a transaction is conducted and post sales
services provided. Online shopping attitude refers to consumer’s psychological state in terms of making
purchases on the internet Chang, M., K., Cheung, W., Lai, V., S. (2005).
No doubt that the internet has been influencing our lives deeply in which it plays an important, indispensable
and irreplaceable role. Online shopping has become a popular and easy way for customers. This new innovative
type of shopping brings a great number and also wide range of merchandise to consumers. It also offers a huge
market and numerous business opportunities. Online consumer behavior became a contemporary research area
with an increasing number of researches. The internet has brought a sweeping revolution in the way we shop or
buy products today. With the advent of internet, online shopping becomes popular and most preferred by certain
segment of consumers for products like travel, books, music, gadgets etc. Though internet penetration and
online shopping is highly evolved in developed nations, in India, the story is different. The poor infrastructure
and lackadaisical approach of our political system is nearly crippling the growth of internet penetration in our
country. It is estimated that India will have 38 million active online shoppers by then. Today companies have
entered this online space to tap its enormous potential. Players like flipkart, Amazon, Snap deal, e-Bay to name
a few are very active in this space. These are very aggressive in attracting young population by offering
convenience, choice, better bargain and speed of buying. On the demand side, consumers are time pressed. With
more and more consumers becoming increasingly familiar with internet and its benefits, online shopping is
gaining popularity and preference among the set of consumers who seek better value proposition when
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Analysis of Consumer Buying Behavior Towards Online Shopping: A Case Study of Kota City- Rajasthan
compared to offline shopping in terms of information, convenience, cost, and choice. Online retail revenue saw
an 11 percent year-over-year growth rate for the first quarter of 2014, with online orders up 13 percent
compared to the same quarter last year. Seventy-two percent of Millennial research and shop their options online
before going to a store or the mall E-commerce Facts (2012).
Earlier studies paid much attention to this topic in developed nations where internet penetration is high and
consumers are highly evolved. Among these factors the risk perception of users was demonstrated to be the
main discriminator between people buying online and people not buying online. Other discriminating factors:
control over and convenience of the shopping process affordability of merchandise, customer service and ease
of use of the shopping site. It included several indicators, belonging to four major categories: the value of the
product, the shopping experience, the quality of service offered by the website and the risk perceptions of
internet retail shopping. Consumer’s attitude towards online shopping affects their buying decisions Booz &
Company (2011).
However, little attention is paid in India where internet penetration is significantly low and consumers are not so
evolved in this space. Hence a need for such as study is identified by the researcher to see how far these
variables are relevant in India and how much they influence consumer’s intention to buy.
RESEARCH METHODOLOGY
The data will be collected from primary sources from survey of structured questionnaire. The data will be also
collected from secondary sources that are like journals, magazines, references books, and other web sites
sources.
Hypothesis
Based on the literature the following four research hypothesis were framed Hypothesis of the study are-
Ho1: Product Attribute to online purchase intention
Ho2: Perceived Risk to online purchase intention
Ho3: Ease of use leads to online purchase intention
Ho4: Usefulness leads to online purchase intention
Online shopping in Kota, Rajasthan is fast becoming popular as there is no waiting in lines or in traffic, we can
shop from the convenience of your home, easier to do comparison shopping, discounts and we can shop at any
time without restrictions. The city has a booming economy and that reflects well in the shopping style of the
Kota people. Apart from the regular shops and snobbish malls, today online shopping in Kota grows in
popularity as more people are turning to online shopping for all their needs.
Kota online shopping is easy, convenient and less time consuming. We will just have to choose your favorite
product, call or email or just drop a note at the website that we have entered and the product will be delivered to
us within a very short span of time. We will just need a credit or debit card or net banking with requisite money,
order online and have the product at your home. There are various products to buy, shop online in Kota.
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This pertains to the business-to-consumer (B2C) segment Cao, M., Zhang, Q., Seydel, J. (2005). It may be too
early to do a comparison with the e-commerce scenes in countries such as the US where billions of dollars are
spent online but the business in India is growing exponentially every year, albeit from a smaller base, the total
revenues have reached a respectful size. 2011 would probably go down as the year when online shopping came
to life in India Deaton, A., Muellbauer, J. (1980). Latest data estimates that nearly 60 percent of online users in
India visited a retail site in November 201l. The number of online shoppers increased 18 percent in past year.
Online shoppers 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
smartphones.
According to the study a significantly low (19 percent) but fast growing internet population of 226 million in
2014 is an indicator of the sector's huge growth potential in India. This underlines the potential of internet use in
India and as internet penetration increases, the potential of growth of the e-commerce industry will also
increase.
It also predicts that the Indian e-commerce market is estimated to grow at a compounded annual growth rate
(CAGR) of 63 percent to reach $8.5 billion (Rs 54,304 crores approximately) in 2016 on the back of growth in
the penetration levels of mobile and internet and increased consumer demand.
India has more than 100 million internet users, out of which around half opt for online purchases and the
number is growing every year. With such a large market size, companies, right from retail shops to consumer
goods, are entering the Web space to attract potential customers.
At the other end of the spectrum, the world’s slowest adopters come from Egypt, where 67 percent of the online
population have never made a purchase over the internet, followed by Pakistan (60%) and the Philippines
(55%).
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Analysis of Consumer Buying Behavior Towards Online Shopping: A Case Study of Kota City- Rajasthan
The survey questionnaire was prepared and distributed among personal contacts and received 200 responses.
The questionnaire format has two main segments such as general information Analysis of their online shopping
behavior and in last customer concern in online shopping.
The online shopping is getting popular among the young generation as they feel it more comfortable, time
saving and convenient. It is analyzed from the survey that when a consumer makes a mind to purchase online he
or she is affected by multiple factors. The main crucial identified factors are time saving, the best price and
convenience. People compare prices in online stores and then review all feedbacks and rating about product
before making the final selection of product and decision. To purchase online things are in demand because of
the best price, convenience and time saving.
The main barrier in the process of online shopping is the safety issue. People of Kota are afraid to share their
personal information and financial information on internet. Credit cards are also not available to all in general as
majority of the consumers are young generation and in Kota to avail credit cards in not a simple process. Due to
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which consumers are reluctant to make online purchasing, then second the most familiar barrier is the low level
of trust on online store therefore, sellers have to make proper strategies to increase the consumer’s level of trust
on them.
Analysis of Consumer Buying Behavior towards Online Shopping
(A case study of Kota City- Raj)
Survey Results
1. Have you ever had online shopping?
(a) Yes (b) No
Option/Age Group 16-35 Above 35-60 Above 60
Option A 55 25 20
2. If yes, approximately how many times did you shop over internet during the last month?
(a) At least once (b) 1 to 3 times (c)More than 3 times
Option/Age 16-35 Above 35-60 Above 60 Percentage
Group (%)
Option A 10 12 10 32
Option B 21 09 06 36
Option C 24 04 04 32
3. If no, why you never had online shopping? (Select one or more options)
(a) Don’t know about online shopping (b) risk of cards transactions
(c) Risk of Identity theft (d) don’t work on computer
(e) Online shopping is risky (f) given bank details are highly risky
(g) Online shopping infrastructure in India is underdeveloped
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Option E 10 06 07
Option F 12 11 05
Option G 08 06 04
4. How did you get the idea of buying specific brand through an online store?
(a) Referred by friend/family (b) Saw an online advertisement
(c) Saw an offline advertisement (d) I was waiting for launch of this product since long
Option/Age Group 16-35 Above 35-60 Above 60 Percentage
(%)
Option A 11 07 06 24
Option B 22 06 05 33
Option C 12 08 06 26
Option D 10 04 03 17
6. What product do you normally purchase online? (Rating according to your choice)
Age Group (16-35)
S.No. Products Respondents in order of Weighted Average Rank
priorities 5,4,3,2,1 Value
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Ranking of Products Age Group(16-35) Age Group(Above 35- Age Group(Above 60)
60)
01 Tickets/Recharges Tickets/Recharges Foods
02 Footwear Electronics Books
03 Electronics Clothes Electronics
04 Clothes Kids Accessories Clothes
05 Foods Footwear Tickets/Recharges
06 Kitchen Appliances Books Furniture
07 Books Ornaments Automobiles
08 Kids Accessories Small Appliances Kids Accessories
09 Sports Foods Footwear
10 Ornaments Large Appliances Sports
11 Furniture Home Appliances Small Appliances
12 Small Appliances Kitchen Appliances Home Appliances
13 Automobiles Sports Kitchen Appliances
14 Home Appliances Furniture Ornaments
15 Large Appliances Automobiles Large Appliances
7. If the product has the same price both in shops and on the internet, where do you prefer to buy it?
(a) High street retailer (b) Internet (c) I don’t really care
Option/Age Group 16-35 Above 35-60 Above 60 Percentage
Option A 10 12 09 31
Option B 31 07 06 44
Option C 14 06 05 25
8. Do you go to a retail store first before making your final purchase online?
(a) Yes (b) No
Option/Age Group 16-35 Above 35-60 Above 60 Percentage
Option A 12 07 05 24
Option B 43 18 15 76
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9. What are the crucial factors which affect your decision making in the final selection of the product?
(Select all which apply)
(a) Best Price (b) Convenience & Time Saving (c) Not available in local store
(d) Price comparison available (e) Product review available (f) others
Option/Age Group 16-35 Above 35-60 Above 60
Option A 30 17 12
Option B 42 16 15
Option C 20 09 08
Option D 43 15 09
Option E 18 09 11
Option F 10 07 02
10. Main reason for online shopping? (Rating according to your choice)
Strongly Slightly Neutral Slightly Disagree Strongly Disagree
Agree Agree 3 4 5
1 2
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11. Features you think necessary for an online shopping site? (Arrange them in your preference)
(a) Multiple payment gateways (b) Privacy and secure checkout (c) Design
(d) Customer friendly (e) Credibility (f) Social networking integration
Option/Age Group 16-35 Above 35-60 Above 60 Percentage
Option A 08 04 05 17
Option B 18 09 03 30
Option C 12 05 04 21
Option D 07 03 04 14
Option E 03 00 01 04
Option F 07 04 03 14
12. What are the main barriers which keep you away from shopping online?
(a) Safety of payment (b) Low trust level of online store/ brand
(c) Value added tax (d) High shipping cost (e) Other security reason
Option/Age Group 16-35 Above 35-60 Above 60 Percentage
Option A 21 12 07 40
Option B 14 05 03 22
Option C 06 02 03 11
Option D 09 04 05 18
Option E 05 02 02 09
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13. Will you read the return policy of the shops before conducting transactions?
(a) Yes, whole part of it (b) Just scans it (c) No
Option/Age Group 16-35 Above 35- Above 60 Percentage
60
Option A 08 04 02 14
Option B 09 08 07 24
Option C 38 13 11 62
14. Which payment method do you use most often when buying products online?
(a) Credit card (b) Debit card (c) Net banking (d) Cash on delivery
Option/Age 16-35 Above 35- Above 60 Percentage
Group 60
Option A 06 02 02 10
Option B 17 05 06 28
Option C 10 04 04 18
Option D 22 14 08 44
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CONCLUSION
The e-commerce is one of the biggest things that have taken the business by a storm. It is creating an entire new
economy, which has a huge potential and is fundamentally changing the way businesses are done. It is believed
that electronic commerce a significant role of the consumer’s daily life to meet their never ending requirements
in a convenient way.
Online shopping is picking up and is becoming a trend. More consumers are indulging into internet shopping as
seen by the research because of the research because of the value proposition it offers to a customer such as
convenience, 24*7 shopping, doorstop delivery, a broad product selection and the ever expanding range of
unique and unusual gift ideas as well as increased consumer confidence in shopping on the internet is
increasing. The main motivating factor seen during the research was the convenience and customer service
which drives the people to online shopping as a result of today they are buying airline and railway tickets,
books, home appliances, electronic gadgets, movie tickets, etc. by logging on to a web site, then driving up to a
store. As the researchers suggest that increase in usage of internet increases the online shopping so there is a
need to increase in broadband penetration as it accelerates the growth of online trade. A huge buyers and sellers
across demographics are shopping online because of the changing lifestyles and shopping habits but the
majorities of the users are males. It was seen that despite the immense possibilities available on the internet it is
mainly used for mailing, chatting and surfing. E-mail applications still constitute the bulk of net traffic in the
country. Increased internet penetration, a hassle free shopping environment and high levels of net savings see
more and more Indians shopping online.
The consumers should be made aware that one of the safety aspects of using credit cards online is that in case of
disputed credit card payments for online transactions the onus is on the merchants to prove that the transaction
actually took place, as online users don't physically sign a credit slip. As a result, online users are protected from
fraudulent use of credit cards.
India has a strong research and development (R&D) capability so companies should innovate rapidly to
take care of the security issues. Technology like text to speech software’s should be innovated to take
care of the security concern.
Other technologies like encryption technologies trusted third-party certifications digital ID systems and
prepaid cards should be used.
It is not only important to pay strong attention to the security issue and create new, innovative
safeguards that protect consumers but the merchants should promote these safeguards to the
marketplace and make the prospective consumers aware that the communications, personal data, credit
card accounts, and transaction information can be protected.
Consumers today demand a better, more efficient and less cumbersome way to compare and buy
products online. Innovative service should be provided to consumers so that they can compare
products, which are available online using their mobile phones.
Online shopping today is an incomplete, fragmented, and sometimes frustrating process. Therefore,
merchants should set themselves apart from their competitors by factors other than price, constantly
innovate and move towards creating customer confidence to trade online.
Vendors should educate the customers about e-commerce like educating them on safety tips like
reading the item description, looking for a seller’s feedback score and asking questions, detecting spoof
mails and informing them about the new online crimes which happen regularly.
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In India still the penetration of internet has not happened the way it should have been which hampers
online shopping. Ecommerce revolution can be brought about by providing more broadband
connections at affordable prices.
There is a huge market for business in the rural India therefore efforts should be such that to bring these
people also to experiencing online shopping.
Most of the Indiana still like to see the product before buying efforts should be made to change this
mindset of the people by making them aware of the benefits of online shopping.
To make online shopping big the shopping web sites should give the customers the convenience to
shop anything on a single site like ordering pizzas, movie tickets, groceries, etc. rather than in scattered
places. The site should not only provide information content but also tools to navigate and evaluate this
information.
Convenience and time saving are the main reason to shop online. Therefore, Business to Consumers
(B2C) sites should be designed in such a way that consumers spend less time in finding information
they are looking for as delays in searching or loading a web page might turn the consumers to other
sites which have faster download and display times.
Since consumers control the experience they receive from shopping over the internet, there is a need to
find ways of managing the amount of information available over the internet. Sites that are able to offer
this information and present it in a simple way to understand will become the preferred destination for
online shopping.
The key for selling to a customer which cannot be seen is to get the customer to trust the website with
which they have electronic transactions.
Some of the things, Which the consumers should take into consideration while online shopping, are:
Use a secure browser- The browser should comply with industry security standards, such as Secure
Sockets Layer (SSL).
Consumers should shop with the known companies, as it is easy to set up a shop online under any
name. If they are not familiar with a merchant, they should ask for paper catalogue or brochure to get a
better idea about the merchandise and services and should find about the company's refund and return
policies. Consumers should also search for the reviews of the company.
The personal information should be kept private like address, telephone numbers, email, etc. One
should avoid using telephone numbers or date of birth for establishing a password instead should use a
combination of number letters and symbols.
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