Consumer Perception Towards Online Shopping3 (1)

CONSUMER PERCEPTION

TOWARDS ONLINE SHOPPING

Group - 4

What is Online Shopping?

Online shopping is the process whereby consumer directly buy goods or services from a seller in real-time, without an intermediary service, over the internet.

Online Shopping Process

How did Online Shopping come about?

• Online shopping emerged with the development of the internet.

• Entrepreneurs saw the potential in online shopping and sprung at the chance to make virtual storefronts, so that consumers could shop without leaving their homes.

Consumer Benefits

Convenience

-Geographic

-Store hours

-Ease of transaction

-Quick and efficient shopping process

Information

-Quick location of items

-Easy price/attribute comparisons

Firm Benefits

Less dependence on intermediaries

-Geographic distribution

-Holdup

-Time to delivery

Marketing

-Target marketing

-Direct customer relationships

-Customer service

Growth of Online Shopping

• According to India Online Landscape – 2011 study conducted by Juxt, the total number of online shoppers in India in the year of 2011 was 60 millions. A report from Google India says that the online shopping in India saw 128% growth in interes from the consumers in the year of 2011 to 2012, compared to only 40% in 2010 to 2011.

• India held fifth rank in Keamey’s annual Gloal Retail Development Index (GRDI – 2008) of largest online retail destination globally. Earlier the trend of online shopping in India was highly unorganized, but currently with the emergence of big shopping companies like Futurebazaar, Shoppers stop, Reliance retail, Spencer, etc., the outlook of online shopping here has completely changed for the best.

• There are over 70,000 new websites put on the internet every hour.

• Internet traffic is doubling every three months.

• Projected annual internet commerce revenue has grown from $35 billion in 1998 to $1.4 – $4.2 trillion in 2013.

Online Shopping VS. Traditional Shopping

Differences

-Cannot try or test product before purchase.

-Minimum human interaction if any.

-Shop anytime online.

Similarities

-Advertisement.

-Security.

-Convenience.

Advantages

• Incredible convenience.• Price comparisons• Infinite choice• It allows people to browse through many items and

categories without leaving their house• Easy access to consumer reviews• Savings in time• 24/7 shopping• No driving and parking

Disadvantages

• You cant try things on• You cant talk to someone immediately• Privacy and security• Time consuming to return faulty goods• Judgment of size and quality• Shipping Cost• Lack of touch and feel of merchandise• lack of close quality examination

Payment

• Credit• Debit• Advance payment• Cash on delivery• Invoice • Gift Cards• Paypal• EMI

Top Product Categories

Perception

The process by which an individual selects organizes, and interprets stimuli into a meaningful and coherent picture of the world.

Model of Consumer Perception

ProductPricePlacePromotion

Buyer’s Decision Process

Product ChoiceBrand ChoiceDealer Choice

EconomicTechnologicalPoliticalCultural

Characteristics Affecting Consumer Behavior

Purchase Timing

Purchase Amount

Buyer’s ResponseBuyer’s Response

Buyer’s Black BoxBuyer’s Black Box

Marketing and other Stimuli

Marketing and other Stimuli

CONSUMER

PERCEPTION/SENSATION

COGNITION

AFFECT

BELIEFS

SOCIAL ANDOTHER INFLUENCE

INFOSEARCH

CHOICES

PREFERENCES

COMMUNICATION

MARKETRESEARCH

STRATEGY

Influences on and of Consumer Behavior

Popular Online Shopping Sites

Flipkart.com

eBay.inSnapdeal.com

Myntra.comJabong.com

Amazon.in

Consumer Perception On Online shopping - PAST

• Less awareness of online shopping• Payment gateway is limited• Customer want to see the product before buy• Using debit/credit card is on high risk.• Will product delivered on time.

Consumer Perception On Online shopping - PRESENT

• Trustworthy and secured payment gateway.• Getting the product lower price than MRP• Wide variety of product range available.

Consumer Perception On Online shopping - FUTURE