Towards Online Shoppingdoc

8/10/2019 Towards Online Shoppingdoc

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)he satisfaction an3 euphoria that accompany the successful

completion of our project woul3 beincomplete without the mention of the people who ma3e itpossible an3 whose constant ui3ance5 encoura ement crowne3 our efforts with success.

e e6press our sincere ratitu3e an3 than7s to Mr. "e3abal !ayfor his support8 ui3ance an39aluable su estions without which we woul3 not ha9e been ableto complete this project.e are also than7ful to all the respon3ents for their contributionwho helpe3 us in this stu3y.

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$c7nowle3 ement;;;;;;;;;;;;;;;;;

;;;;. 'a e 2 $bstract....................................;;;;;;;;;;;;;;;;...'a e 4&ntro3uction ...................................................;;;;;;;;;;;'a e

Online Shoppin &n&n3ia;;;;;;;;;;;;;;;;;;....'a e ?Chan e in $ttitu3e towar3s OnlineShoppin ;;;;;;;;............'a e 22'ropose3

Mo3el;;;;;;;;;;;;;;;;;;;;;......'a e2A per cent8 the cityGs share of e-commerce is not 9ery hi h.1ol7atta too has a literacy rate >@.> per centE an3 so 3oes Chennai

>@.2 percent.E &f onecompares these rates to literacy rates of cities li7e 'atna =:.? percentE8 (=K per

&n3ore K: percentE or aran alKA percentE its clear why its the metros which are oin

to continue to lea3 e-shoppin .

A. #ome 3eli9ery concept

&n any case8 home 3eli9ery is a concept that &n3ians are familiar with an3 lo9e. )he mallcraHe has starte3 only now. arlier it was a choice betweensweatin it out in small crow3e3mar7ets8 or as7in a frien3ly nei hbourhoo3 7irana rocerE to3eli9er roceries home an3this system is still thri9in .

4. &ncrease in the &nternet users

&ncreasin penetration of &nternet connecti9ity an3 'Cs hasle3 to an increase in the&nternet users across &n3ia. )he 3emo raphic se ments th atha9e witnesse3 ma6imumrowth comprise colle e oin stu3ents an3 youn persons.)hese se ments are the usersof a39ance3 applications an3 technolo ies online an3 aremost li7ely to be hea9y -Commerce users. 2A


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in3epen3ent an3 fi9e attitu3e towar3 online shoppin 8intention to shop online8 3ecisionma7in 8 online purchasin 8 an3 consumer satisfactionE areor3inarily 3epen3ent 9ariables.Consumer satisfaction is consi3ere3 to be a separate factor inthis stu3y. &t can occur at allpossible sta es 3epen3in on consumerGs in9ol9ement 3urin theonline shoppin process. )herelationships between satisfaction8 attitu3e8 intention8 3ecisionma7in an3 online purchasin arepropose3 to be two-way relationships 3ue to the reciprocalinfluences of each on the other. &na33ition8 three of the antece3ents8 percei9e3 usefulness8percei9e3 ease of use8 percei9e3enjoyment 8 ha9e been foun3 to ha9e 3irect impact on consumer satisfaction.

'ercei9e3 Usefulness

'ercei9e3 usefulness is 3efine3 as the 3e ree to which a personbelie9es that usin a particular system woul3 increase his or her job performance. &t is animportant factor affectin acceptance

of an information system8because the ultimate aim of any personis the superior job performance.'ercei9e3 ase of Use

)his is an important factor that affects the acceptance of aparticular information system.&t is3efine3 as the 3e ree to which a person belie9es that usin aparticular information systemwoul3 be free of effort. #ence an application percei9e3 to beeasier to use woul3 more li7ely beaccepte3 by the user.

'ercei9e3 njoyment

njoyment refers to the e6tent to which the acti9ity of usin acomputer is percei9e3 to beenjoyable in its own ri hts.)his is seen as an intrinsic source of moti9ation to use a particular application.

$mount of &nformation $mount of information is 3efine3 as the information which isa9ailable for the pro3uct which aperson wants to buy throu h online shoppin .)his factor eases the 3ecision of the user toactually buy the pro3uctor not8 or which pro3uct to buy.)his factor becomes e9en moreimportant in case of #i h &n9ol9ement pro3uct. 2


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Security an3 'ri9acy

Security an3 pri9acy are the main factors which hin3er the rowth

of Online shoppin . )he user is concerne3 about his &+ an3 'asswor3 which can be stolen bypersons with wron intentionsan3 then misuse it. $t the same time they are concerne3 thattheir personal information may besol3 to the thir3 party which poses a serious threat to their pri9acy.uality of &nternet Connection

Not only is the presence of internet connection neccessary butalso its uality is important toshop online.)his is an important factor which 3etermines whether the user woul3 shop online or not because presence of internet is a basic neccessity for thismo3e of shoppin .

$))&)U+ )O $!+S ON &N S#O''&N*

ConsumerGs attitu3es towar3 online shoppin ha9e aine3a reat 3eal of attention in theempirical literature. &t is belie9e3 that consumer attitu3es willaffect intention to shop online an3e9entually whether a transaction is ma3e. &t refers to

2E )he consumerGs acceptance of the &nternet as a shoppinchannel:E Consumer attitu3es towar3 a specific &nternet store i.e.8 towhat e6tent consumers thin7 thatshoppin at this store is appealin E. 2=


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&N) N)&ON )O S#O' ON &N

ConsumerGs intention to shop online refers to their willin ness toma7e purchases in an &nternetstore. Commonly8 this factor is measure3 by consumerGswillin ness to buy an3 to return for a33itional purchases. )he latter also contributes to customer loyalty. ConsumerGs intention toshop online is positi9ely associate3 with attitu3e towar3s &nternetbuyin 8 an3 influences their 3ecision-ma7in an3 purchasin beha9ior. &n a33ition8 there ise9i3ence of reciprocal influencebetween intention to shop online an3 customer satisfaction.

ON &N S#O''&N* + C&S&ON M$1&N*

Online shoppin 3ecision- ma7in inclu3es information see7in 8comparison of alternati9es8 an3choice ma7in . )he results bearin on this factor 3irectlyinfluence consumerGs purchasinbeha9ior. &n a33ition8 there appears to be an impact on

userGs satisfaction. )hou h it isimportant8 there are only fi9e stu3ies that inclu3e it. $ccor3in to #aubl an3 )rifts :@@@E8 potential consumers appear to use a two-sta e process inreachin purchase 3ecisions.

&nitially8 consumers typically screen a lar e set of pro3ucts inor3er to i3entify a subset of promisin alternati9es that appears to meet their nee3s. )heythen e9aluate the subset in reater 3epth8 performin relati9e comparisons across pro3ucts base3

on some 3esirable attributes an3ma7e a purchase 3ecision.

ON &N 'U!C#$S&N*

)his is the most substantial step in online shoppin acti9ities8 withmost empirical research usinmeasures of freFuency or numberE of purchases an3 9alue of online purchases as measures of online purchasin B other less commonly use3 measures areunplanne3 purchasesOnline purchasin is reporte3 to be stron ly associate3with the factors of personalcharacteristics8 9en3or/ser9ice/pro3uct characteristics8 websiteFuality8 attitu3es towar3 onlineshoppin 8 intention to shop online8 an3 3ecision ma7in $n3ra3e:@@@B"ellman et al. 2???E 2K


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CONSUM ! S$)&S,$C)&ON

&t can be 3efine3 as the e6tent to which consumerGsperceptions of the online shoppine6perience confirm their e6pectations. Most consumersform e6pectations of the pro3uct89en3or8 ser9ice8 an3 Fuality of the website that theypatroniHe before en a in in onlineshoppin acti9ities. )hese e6pectations influence their attitu3es an3 intentions to shop at acertain &nternet store8 an3 conseFuently their 3ecision-ma7in processes an3 purchasinbeha9ior. &f e6pectations are met8 customers achie9e ahi h 3e ree of satisfaction8 whichinfluences their online shoppin attitu3es8 intentions83ecisions8 an3 purchasin acti9itypositi9ely. &n contrast8 3issatisfaction is ne ati9ely associate3 withthese four 9ariables #o an3u 2???B (ahn et al. :@@2B 1im et al. :@@2E.

&nformation on

Online shoppin $ttitu3e&ntentiontowar3s +ecision Otoshoponline Ma7in 'urcSecurity 5 'ri9acy onlineshoppin

'ercei9e3Usefulness

'ercei9e3 ase of use CONSUMER SATISFACTION

'ercei9e3njoyment

'!O'OS + MO+2>


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&M' &C$)&ONS $N+ ! COMM N+$)&ONS ,O!,U)U! ! S $!C#

$s the mo3el in3icates8 three out of the fi9e 3epen3ent 9ariablesconsumer attitu3es8 intentions8an3 purchasin beha9iorE an3 three out of the fi9e in3epen3ent9ariables percei9e3 usefulness8percei9e3 ease of use8 percei9e3 enjoyment8 information ononline shoppin 8 security an3pri9acy8 Fuality of internet connection E recei9e the most attention.)his seems to constitute themain stream of research in this area. &t is foun3 that personalcharacteristics such as9en3er/ser9ice/pro3uct characteristics an3 website Fualitysi nificantly affect online shoppinattitu3es8 intention8 an3 beha9ior.

)he role of the e6ternal en9ironment8 3emo raphics8 onlineshoppin 3ecision ma7in 8 an3consumer satisfaction are less well represente3 in the propose3mo3el.. $ny number of factors8inclu3in 9en3er/ser9ice/pro3uct characteristics8 websiteFuality8 attitu3e towar3s onlineshoppin 8 intention to online shoppin 8 online shoppin 3ecisionma7in 8 an3 online purchasin 8may influence consumerGs satisfaction. More importantly8 thee6tent to which customers aresatisfie3 is 3irectly relate3 to attitu3es towar3 online shoppin or towar3 specific &nternet stores.)he relati9e importance of this factor in 3ete rmininsuch consumer beha9ior as repeatpurchases su ests that further research on consumer satisfaction with online shoppin nee3s tobe con3ucte3. 2?


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&M&)$)&ONS O, )#&S S)U+0

imitation of the stu3y is the selection of the e6istin stu3ies.Owin to time limitation8 we onlysearche3 a few number of journals. )his may lea9e some other prominent empirical stu3ies out.&n a33ition8 owin to the multi3isciplinary nature of online shoppin 8 it woul3 be 9eryinterestin to compare &S literature to other 3isciplines that stu3yonline shoppin attitu3es an3beha9ior.

&n3ian -Comm. !eport ,in3s #ea9y Spen3ers +ri9inSales"y +e9in Comis7ey

$u ust 2=8 :@@K

$ Sur9ey by &n3ian research or aniHation (u6tconsult foun3 thatmore an3 more &n3ian &nternetusers are openin their wallets online. hile such hur3les aslimite3 broa3ban3 access an3security concerns remain8 the report fin3s there are currentlymore than 2@ million shoppersonline in &n3ia. hile current tren3s point to increase3 e-commerce rowth in &n3ia8 the onlinemar7etplace in the country of more than 2 billion people is stillrelati9ely small.(u6tconsultLs sur9ey foun3 that 4@ percent of all urban&nternet users buy online8 while 4:percent of the sales ori inate throu h just fi9e percent of consumers. )he sur9ey was con3ucte3in $pril :@@K an3 sample3 more than A@8@@@ users.

)his section of buyers spen3s


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hile 4A percent of male users buy online8 only A2percent of urban female users areconsumers as well. omen ten3 to search more. +efyin their more common attitu3e towar3sshoppin 8 women are more uar3e3 when it comes to the onlinemar7et8 says (u6tconsult.+epen3in on the pro3uct type8 nine percent to :< percent arebuyin online8 whereas AA to 4Kpercent are searchin the net for pro3uct information8 it says.

Security ,ears 'ersist

(u6tconsult says the moti9ation for &n3ian users to ma7epurchases online 9aries8 but users fear compromise3 personal information is still a reat ris7 when itcomes to e-commerce.)he sin le bi est moti9ation for buyin online for net users issa9in time. )hirty-two percentof them loo7 to shop online with this purpose. Con9enienceof shoppin L:46KL an3 home3eli9ery are other major incenti9es8 says the report. #owe9er8the concern of possible misuseof cre3it car or personal information is e6tremely si nificantamon online buyers8 with almost


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$ new tren3 in this space is that of Meta search en ines.&6i o an3 Hee o are two

Q

players in this space. $ Meta search en ine searches all theonline tra9el sites inclu3inthe airlines sites as wellE an3 3isplays the best 3eals for the user.

Q )ra9el websites8 such as Ma7e My )rip &n3ia '9t. t3 an3 0atraOnline '9t. t38 arebattlin to win o9er &n3iaGs !s2=8@@@ crore R4@@ millionE reli ioutra9el mar7etOpportunity in Online )ra9el &n3ustry R:billionQ

Online tra9el company Ma7eMy)rip MM)E has recor3e3 salesof !s. 2@@@ crore for the

Q

financial year en3in March :@@>8 as per a release.

"$!!& !S )O *!O )# O, ON &N M$!1 )

Consumer "ias

Consumers often 3isplay a bias for bran3s that they 7now wellan3 ha9e ha3 a oo3 e6periencein the past. )hus pro3ucts of bran3s with a fa9orable bias willscore o9er the pro3ucts of lesspopular bran3s. $ few woul3 ris7 to buy e6pensi9e jewelry froman un7nown jeweler online.

ac7 of )ouch V,eel-)ryG 6perience

)he customer is not sure of the Fuality of the pro3uct unless itis 3eli9ere3 to him an3 post3eli9ery of the pro3uct8 it is sometimes a len thy proces to et afaulty or the unsuitable pro3uctchan e3. )hus8 unless the 3eli9erables are as per the customerse6pectations8 it is har3 to infusemore cre3ibility in the e-)ailin mar7et.

Mountin Competiti9e 'ressures

)o attract customers8 the competin online players are a3optinall means to pro9i3e pro3uctsan3 ser9ices at the lowest prices. )his has resulte3 in ma7in t heconsumers choice-spoilt8 whoin turn surf 9arious websites to spot the lowest price for thepro3uct. )hus8 althou h the number of transactions is increasin 8 the 9alue of the pro3ucts sol3 iscontinuously fallin ownin tohi h compe tition an3 leaner mar ins.Seasonality ::


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e)ailin Mar7et is face3 by seasonal fluctuations. $s tol3 by an&n3ustry player8 W$u ust to,ebruary is the pea7 seasons for sale8 while March to (uly isthe 3ry seasons for saleX. +urinthe pea7 season8 occasions that 3ri9e the sales are +iwali8!a7hi8 %alentines +ay8 New 0ear8Christmas8 MotherGs +ay8 ,rien3ship +ay etc are. On theseoccasions youn er enerationsprefers buyin an3 sen3in ifts online.

Cre3ibility in 'ayment System

Online frau3s an3 breach are the bi est barriers to online sales. $s a result8 prospecti9e buyersprefer stayin away from re9ealin their cre3it car3 an3 ban73etails.

Untimely +eli9ery of 'ro3ucts

&t mi ht ta7e a few minutes to search8 boo7 an3 pay for pro3uctsan3 ser9ices online8 but the3eli9ery of the pro3uct may ta7e unreasonable time.

:A


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CONC US&ON

&ncrease3 &nternet penetration8 a hassle free shoppinen9ironment an3 hi h le9els of Netsa99iness see more an3 more &n3ians shoppin online."ut at thesame time the companies nee3to re3uce the ris7s relate3 to consumer incompetence bytactics such as ma7in purchasewebsites easier to na9i ate8 an3 intro3ucin &nternet 7ios7s8computers an3 other ai3s in stores.)he oal is not to con9ert all shoppers to online purchasin 8 butto show them itGs an option. &na33ition to abo9e8 efforts nee3 to be ta7en to e3ucate the onlinebuyers on the steps that nee3 tobe un3erta7en while ma7in an online purchase. Moreo9er8 thefee3bac7 of an online buyer shoul3 be capture3 to i3entify flaws in ser9ice 3eli9ery. )hiscan be 3one throu h onlinecommunities an3 blo s that ser9e as a39ertisin an3 mar7etintools an3 a source of fee3bac7for enterprises. e foun3 that it is a challen e for -mar7eters tocon9ert low freFuency onlinebuyers into re ular buyers throu h successful website 3esi nan3 by a33ressin concerns aboutreliable performance. )hus8 the online retailin raises moreissues than the benefits it currentlyoffers. )he Fuality of pro3ucts offere3 online an3 proce3ures for ser9ice 3eli9ery are yet to bestan3ar3iHe3. )ill the same is 3one8 the buyer is at a hi her ris7of frau3s.

:4


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$NN YU! 2

uestionnaire

#a9e you e9er ma3e a purchase o9er the &nternetTa. 0es b. No

2.

:. hen was the last time you ma3e a purchase o9er the&nternetT

a. One month a o b. )wo months a o c. More

than two months a o

A. &n the past A months what items ha9e you purchase3 on the&nternetT

"oo7s b. %i3eos / +%+s *ames

a.

c. $irline )ic7ets / !eser9ations 3. Clothin / $ccessories / Shoese. Music f. lectronicFuipment. Computer #ar3ware h. )ours / #otel

!eser9ationsi. 9ent )ic7ets j. Computer software7. Cosmetics / Nutrition Supplies l. *roceries

m. Sportin *oo3s n. other items

4. hich metho3 or metho3sE of payment 3i3 you use to ma7eyour last purchases o9er the&nternet in the past A monthsT

Cre3it /+ebit Car3 b. "an7 )ransfer c. Cash on+eli9erya.3. Money )ransfer e. Other Metho3 :


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,or each of the followin 8 please tell if these concern you whenyou are ma7in a

22.

purchase o9er the &nternet.

*reat 3eal ,air amount $ little Not at all

aE Not sure of pro3uct FualitybE Cannot bar ain/Ne otiate

cE Not sure of security of transactions

/Cre3it car3 misuse

3E Nee3 to touch an3 feel the pro3uct

eE Si nificant 3iscounts are not there

fE#a9e to wait for 3eli9ery

N$M

$* below :A yrs

:A yrs- 4@ yrs

4@ yrs-


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!s. A.2?A

3f 2


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uality of internetconnection 2.@@@ .=KA6traction Metho3 'rincipal Component $nalysis.

)otal %ariance 6plaine3

6traction Sums of !otation Sums of SFuar&nitial i en9alues SFuare3 oa3in s oa3in s

Compo of of ofnent %arianc Cumulat %arianc Cumulat %ariC u

)otal e i9e )otal e i9e )otal e2 :.4 2?.KA: =:.4 2.AA> ::.A@> =:.4A .?K@ 2=.2=: K>.K4=4 .=?< 22.


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uality of internetconnection .@2?6traction Metho3 'rincipal Component $nalysis.

a : components e6tracte3.

!otate3 Component Matri6 aE

Component2 :

&nformation .A=: .==4

'ercie9e3usefulness .=>4 .4KA .@4@

'ercie9e3enjoyment .>?@ .2A?

Security .4=A -.:2A

uality of internetconnection -.::: .K?@6traction Metho3 'rincipal Component $nalysis.!otation Metho3 %arima6 with 1aiser NormaliHation.a !otation con9er e3 in A iterations.

Component )ransformation Matri6Component 2 :2 .?4A .AA4: -.AA4 .?4A A@


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6traction Metho3 'rincipal Component $nalysis.!otation Metho3 %arima6 with 1aiser NormaliHation.

$NN YU! A

+ifferent mo3els of consumer attitu3e towar3s onlineshoppin

"y Mary $nn astlic7)his chart shows how consumer attitu3e towar3 online shoppincan lea3 either to approachcopin wantin to shop onlineE or to a9oi3ance copin 3eci3innot to search or shop onlineE.Someone who is optimistic towar3 the benefits of online shoppi nwill 3e9elop approach copin .

$ person who is pessimistic towar3 online shoppin will thi n7 of the 3rawbac7s to it an3 3eci3eto purchase in physical stores instea38 which is a9oi3ancecopin . A2


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$NN YU! 4

,!$M O!1 ,O! CONSUM !SG &N) N)&ONS )O S#O'ON &N A:


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Source research by meral3

$NN YU! millione9ery month

)otal clic7s on sponsore3 lin7s by &n3ian users in a month O9er 4.>millionNumber of a39ertisers tar etin &n3ians web-users O9er 4@8@@@

)otal annualiHe3 spen3 by all a39ertisers tar etin &n3ian!s.:A= crores US R ?8AKK

Most clic7s bou ht by a bran3 in a month


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$NN YU! K

)op Online )ra9el &n3ustry usin Search n ine Mar7etin an3their annual spen3 in !upees.

1eywor3s 'ortfolio Online )ra9el &n3ia ,irms

A


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Source &MN$&5 'instrom

REFERENCES

Consumer online shoppin attitu3es an3 beha9ior anassessment of research 8by Na i

Q

an3 'in Zhan 8Syracuse Uni9ersity

Consumer attitu3es towar3 shoppin 9enues affectmar7etin strate ies ."y Susan

Q

Mc*inley

)he State of -Commerce Online Shoppin )ren3s8"y (ames Ma uireQ

Q (ournal of lectronic Commerce !esearch8 %O . =8 NO.:8 :@@

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Towards Online Shoppingdoc