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org © 2018 IJCRT | Volume 6, Issue 2 April 2018 | ISSN: 2320-2882

CUSTOMERS PREFERENCE TOWARDS

ONLINE SHOPPING
1Mrs. R. Kavitha, 2Dr. Inbalakshmi,
1
Assistant Professor, 2Associate professor
1
Dept of Commerce, 2Dept of training and development
1
SRM Institute for training and development, Chennai. 2G.T.N Arts college, Dindigul

ABSTRACT
In the age of globalization electronic marketing is of a immense revolution. Over the last ten years
most of the business organizations are implementing to this technology to market their several products.
Online shopping offers an tremendously different shopping experience for people in developing nations
like India. Convenience is one of the main reasons for going into online shopping. Large discounts and
offers provided by the online sellers also appeal to numerous buyers. This study tries to discover the
customer preference towards online shopping. The data is taken from 156 respondents using convenience
sampling method who use online shopping facilities. The purpose of this study is to scrutinize the
preference and attitudes of customers towards online shopping and the insights of male and female
customers . The study also helps to determine the key factors that effect the buying behavior of
customers. ANOVA, Descriptive analysis are applied to find out the customers’ preference towards
online shopping. The findings of this study indicates that Age, Gender, Income , Profession and Family
structure are critical factors that influence online shopping.
Key words: Online shopping, Customer Preference, ANOVA, Descriptive Statistics

1 Introduction
Online shopping lets consumers to purchase goods directly from seller through Internet using any
web browser. E-commerce, e-marketing, digital marketing are growing steadily in recent years as our
Prime minister Mr.Narendra modi is aiming on digital India. Presently India is having more than 2 billion
internet users and India is at the third position worldwide when it comes to internet users. Michale
Aldrich invented online shopping in 1979. Online shopping is also known as e-web-store, e-shop, e-store,
Internet shop, web-shop , web-store , e-shop, e-store, web-shop, web-store, online store, online storefront
and virtual store. The popular online retailing companies in India are Flipkart, Amazon, e-bay, Myntra,
Jabong, snapdeal, Alibaba and so on. The factors which impact customer preference towards online
shopping are Information, Easy to use, Security, Satisfaction, Proper utilization of available information
to compare the different products available in the market.
2 Statement of the problem
This study has been carried out on the title, “ A study on customer’s preference towards online
shopping” . The study talks about the various factors like security, website design, time convenience,
comparability of products – to analyse what are all the factors influencing online shopping preference.

3 Review of literature
Thomoson S.H.TEO1 (2002) has underlined the aspects of online shopping and provides a better
understanding of the potential of electronic commerce. He stated that security and trust issues are the
major deterrents to online purchase. He also stated that to handle security concerns business could offer

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cheque payment, payment on delivery terms, money back guarantees and monthly instalemnt schemes.
Gwo-gung Lee and Huiu-Fen Lin Taiwan2 (2005) examined the relationship among e-service quality
dimensions and overall service quality, customer satisfaction and purchase intensions. They found that
online website design positively affects overall service quality and customer satisfaction. Mohammed
T.Nuseir3, et al (2013) stated that lack of high quality and e-promotion restricts the consumer decision to
purchase through Internet. Nur ozer canarslan4 (2013) stated that there is significant difference between
the responses of the participants encountered during online shopping and also problems like issues about
privacy and security, page loading and speed are not highly effective in encountering problems. Renuka
Sharma5, et al (2014) explained the online buying behavior of consumers in India. They stated that huge
Indian market through e-tail stores is replacing retail stores and e-commerce market has a great potential.
A.Meharai Banu6, et al (2014) found that majority of the respondents prefer to purchase electronic
products through online shopping. 90% of the respondents felt that delivery time is important, 81% of the
respondents felt that security is very important and 53.3% agreed that online price is lower than actual
price . Dr. Amaravathi7, et al (2015) explained the advancement in the area of e-shopping and the
customer’s preference towards e-shopping. He concluded that online shopping saves time and it is
convenience for an array of consumers, especially for elderly and disabled consumer. Dr.D.Anusya8
stated that majority of the respondents choose online shopping for time saving, price, online delivery,
security, door delivery, Guaranty schemes and discounts. She concluded that respondents shows
dissatisfaction only in after sales service. Mohammed Jamal Uddin ACMA and Tunaina Sulthana9
(2015) stated that 56% of the respondents are below 25 years of age, 21% of the respondents are engaged
in formal employment , 27% of respondents have monthly income of more than Rs.30,000 and 76%
respondents buy for personal use in online shopping. He found that there is an overall positive reaction
towards online shopping. Upsana kanchan10, et al (2015) stated that online shopping is gaining its
popularity among people of young generation and high income group and educated people and only due
to security concern people have hesitation in doing online.

4 Objectives of the study

(i) To ascertain the most preferred website among the selected websites and the reasons for
preferring them.
(ii) To analyse the factors influencing the customer preference towards online shopping.

5 Hypothesis
H0: There is no significant difference between Age, Gender, Marital status, Religion, Area of residence,
and Family structure, and Online shopping preferences.

6 Methodology
This study is an empirical study based on survey conducted from 156 respondents selected by
using convenient sampling. Primary data have been collected from the respondents by using a well
structured questionnaire and secondary data have been collected through Magazines, Journals,
Newspapers and Internet.
7 Analysis and Interpretation of data
The Statistical Package for the Social Sciences (SPSS) software 16 was used to analyze the data for this
study.

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Table 1
Reliability Analysis
Reliability Statistics
Cronbach's Alpha N of Items
.622 25
The Cronbach’s alpha value is calculated to check the reliability of the instrument which is used to
collect the data. Here, Cronbach alpha value is 0.622 which is enough to ensure the reliability level of the
questionnaire.
Table 2
Preference of Websites by the Respondents

Responses Percent of
N Percent Cases
websites_preferred Flipkart 56 22.6% 37.8%
Amazon 116 46.8% 78.4%
Snapdeal 46 18.5% 31.1%
E-Bay 22 8.9% 14.9%
Others 8 3.2% 5.4%
Total 248 100.0% 167.6%
a. Dichotomy group tabulated at value 1.

From the above Table, it is identified that Amazon is the most preferred website by the respondents for
online shopping.

Table 3
Factors Influencing the Customer Preference Towards Online Shopping
(Descriptive Statistics)
Std.
N Mean Deviation
on-time delivery by shopping online 156 4.09 .953
Easy to order in online shopping 156 4.55 .593
Detail information is available while shopping online 156 4.24 .626
I can buy the products anytime 24 hours a day while shopping online 156 3.69 .899
It is easy to choose and make comparison with other products while 156 4.35 .659
shopping online
Can find products that are not available in the stores 156 3.90 .888
No need to deal with sales people 156 3.88 .894
Easy of product return and money refund 156 4.29 .645
Offers and discounts 156 3.99 .957
Inclination towards trying something new 156 3.69 1.057
Known or famous brand name 156 4.33 .656
Online shopping saves customer's time 156 4.18 .677

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Payment made easier in online shopping 156 4.29 .559

From the above table, we can say that “Easy to order in online shopping” is in first place in the
parameters which motivates the customers to prefer online shopping since its mean value is high
compared with others.
Table 4
ANOVA- Relationship between socio-economic factor and preference of the
customers in online shopping
Std.
N Mean F Sig
Deviation
below 30 126 4.3458 1.05963
Age years .379 .539
31 to 40 years 30 4.2190 .78042

Male 70 3.8469 .23901

Gender 33.9135 .000
Female 86 4.7076 1.21691
Married 62 4.2627 .58542
Marital
.346 .557
status Un married 94 4.3602 1.21435

Religion Hindu 132 4.3842 1.05576

Muslim 8 4.0000 0.00000 1.672 .191

Christian 16 3.9643 .77460

Rural 56 3.7551 .43392

Residence Urban 30 4.0429 .15193 28.712 .000
Semi-urban 70 4.8939 1.22859

Nuclear 102 4.5574 1.14348

Family type Joint 54 3.8757 .43286 17.799 .000

From the above table it is concluded that there is no impact in age group, all categories of age
group preferring online shopping in same way. There is no difference among age category. With
regarding to gender there is a difference among male and female respondents. Female respondents have
high preference than compared to male respondents. From the above table , it is inferred that there is no
difference regarding marital status. There is a difference of opinion regarding customer who are residing
in rural, urban and semi-urban areas. Semi-urban customers are preferring online shopping more than
compared to rural and urban customers. With regarding to family type there is a difference of preference
regarding nuclear family and joint family. Nuclear family have high preference than compared to joint
family.
8. Findings
From the above study it is found that:
 All categories of age group preferring online shopping in same manner.

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 Female respondents are preferring online shopping than male respondents.

 Semi-urban customers are preferring online more than compared to rural and urban
customers.
 Nuclear family have high preference than compared to joint family.

9. Conclusion
In the midpoint of technological improvements people mostly prefer online shopping to traditional
shopping. Online shopping has come to be most popular and is extremely convenient. Though it is
convinent there are various factors like price, quality of the products, comparison of quality and price
between products, mode of payment, security which customers’ look before online shopping. The online
retailers must conscious of these factors to be successful and keep hold of the customers. Online shopping
is growing tremendously in a positive manner.

References
(1) THOMPSON S.H. TEO (2002) ,” Attitudes towards online shopping and the Internet” , Behaviour
and information technology.
(2) ‘GWO-Gung Lee , Huiu-Fen Lin Taiwan(2005), “ Customer preferences of e-service quality in online
shopping”, INTERNATIONAL JOURNAL OF RETAIL AND DISTRIBUTION MANAGEMENT”.
(3) Mohammed T.Nusier, Nitin Arora, Morad M.A!.Masri and Mazhar Gharaibeh (2013) ,” Evidence of
online shopping”, INTERNATIONAL REVIEW OF BUSINESS RESEARCH PAPERS.
Volume6.Number 5, Nov 2010.
(4) Nur ozer canarslan (2013) “ A comparision of customers responses to E-service quality statements:
customer encountered Vs not encountered problems”, INTERNATIONAL JOURNAL OF BUSINESS
AND SOCIAL SCIENCE.
(5)DR. Renuka Sharma. Dr. kiran Mehta, Shanshak Sharma (2014) “ understanding online shopping
behaviour of Indian Shoppers”, INTERNATIONAL JOURNAL OF MANAGEMENT AND BUSINESS
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(6) A. Meharaj Banu, Usha rani, Malini, Idhayajothi, Pavithra(2014), “A study on customer preference
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OF ADVANCED RESEARCH IN MANAGEMENT AND SOCIAL SCIENCES
(7) Dr. Amaravathi and Mr. Anand Shankar raja.M (2015), “ Customers preference towards online
shopping with special reference to kochi,” INTERNATIONAL JOURNAL OF INFORMATION
RESEARCH AND REVIEW.
(8) Dr.D.Anusya (2014) ,” A study on customer preferences and satisfaction towards selected online
websites with special reference to Coimbatore city”, PARIPEX-INDIAN JOURNAL OF RESEARCH.
(9) Mohammed Jamal uddin ACMA and Tunazzina sulthana (2015) ,” Consumer preference on online
shopping “, “ THE COST AND MANAGEMENT , VOLUME-43.
(10) Upsana kanchan, Naveen kumar and Abhistiek Guptal (2015), “ A study of online purchase behavior
of customers in India”, ICTACT JOURNAL OF MANAGEMENT STUDIES.

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