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International Research Journal , July 2010

ISSN- 0975-3486 RNI: RAJBIL 2009/30097

VOL I *ISSUE 10

Research Paper—Marketing

A STUDY OF INDIAN ONLINE CONSUMERS & THEIR BUYING BEHAVIOUR
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July, 2010

* Ankur Kumar Rastogi

* Assicate Prof. Comm.Dept. Sant Gadge Maharaj Mahavidyalaya, * Ph.d Research Scholor Singhania University, Jhunjhunu, Rajasthan, Walgaom.

A B S T R A C T

This study attempts to analyze the features related to the buying behaviour of online shoppers. Consumer buying behaviour in respect of online shopping was studied using different socio-economic variables. It also provides a support that helps researchers understand the drivers of consumers’ attitude and goal to shop on the Internet, and consumers’ perceptions regarding ease of use and usefulness. Conclusions derived from the analysis can be used as useful guide for market orientation. The outcomes of the study suggest that assessment of consumer buying behaviour can contribute to a better understanding of consumer buying behaviour in respect of online shopping. Key words: Online shopping, Buying Behaviour, Consumers etc. Introduction a distribution channel, is a critical matter for both eIndian consumers as a whole spend about 55% of the marketing managers and consumer thinkers. There are total consumption expenditure on food items. lots of companies which are providing the platform to According to a survey conducted by ORG, the consumers to buy the products through online. Online expenditure on non-food items has recorded large consumers tend to be better educated. Higher computer growth that the expenditure on food items. Consumers literacy makes internet shopping smarter.Their decide whether, what, when, from whom, where and awareness about the internet also makes them better how much to buy. They can avail various mediums to positioned to identify and take decision for products buy the products. But currently we are living in the and services. By the internet, consumers find that they age of internet. no longer have to accept fixed prices for the products According to a study, “About 44 percent and services and through the click of a few buttons students use Internet in India and overall 72% of young the lowest priced, highest quality product can be people access Internet on regular basis. Due to the found. The concept of online shopping developed vast usage of Internet, the buying patterns have been gradually, after the launch of the World Wide Web. changed. It has changed the way goods are purchased Charles Stack was the first person to create an online and sold, resulting to the exponential growth in the book store in 1992. Even Pizza Hut opened an online number of online shoppers. However, a lot of pizza shop, whereas eBay and Amazon took the concept differences concerning online buying have been of online shopping to an entirely new level. Online discovered due to the various consumers’ shopping began in full swing since the year 1996. characteristics and the types of provided products and Overall, 71 million users accessed Internet in year 2009, services. Attitude toward online shopping and goal to with 52 Million “active” users who accessed it atleast shop online are not only affected by ease of use, once in a month. usefulness, and enjoyment, but also by other factors Review of Literature Simon Rigby, Head of Direct like consumer individuality, situational factors, product Channels at Comet, says, “Our challenge is to meet distinctiveness, previous online shopping the needs of the greatest number of shoppers. By understanding and faith in online shopping. Therefore, undertaking research on a regular basis, we learn more understanding who are the ones consuming and why about our customers’ shopping needs and styles. This they choose to use or keep away from the Internet as helps us to deliver all the necessary reassurances, 80 fjlpZ ,ukfyfll ,.M boSY ;, q ’ku

International Research Journal , July 2010

ISSN- 0975-3486 RNI: RAJBIL 2009/30097

VOL I *ISSUE 10

product ranges and services. We conducted this survey during our peak selling period as we are in the process of developing our range of online interactive services, such as Live Chat and CometTV.co.uk. Powerful multi media sales tools will soon become standard in the online shopping arena. In three years, you’ll be just as likely to click and watch a product related video of your intended purchase on your computer before you buy - as you are to have an email address today.” Research summarized by Emarketer (2005) showed that the Internet applied a bigger influence than for offline media for electronics compared to that clothing, beauty or home improvement as would be expected. Internet Marketing has changed the way people buy and sell good and service. It has added lot of convenience and easy to the whole process of buying. Internet buying prevalence is highest in the United States, where 93% of Internet users have bought on-line (Business Software Association, 2002), and it is growing rapidly in India as well (www.ebay.com). Objectives of the study The main objective of the study is to discover the key factors that influence online buying behaviour of consumers in India. Research Methodology Data Collection Methods Both the primary and secondary data collection methods were considered. The primary data was
Basic factors Age

collected through a questionnaire designed exclusively for the study. Secondary data was taken from Research papers, Journals, Magazines and Websites. Sample Design Samples were collected from consumers and buyers of online shopping in which the total sample size of respondents are 200. Questionnaire Survey method was adopted for this study. For the purpose of the survey, a structured questionnaire was prepared and distributed to the consumers and buyers to study about their preference and satisfaction of online shoppers (online buyers). Data Analysis and Interpretation After obtaining and analyzing the collected data, we have found following results: Figure: 1: Major products available for online shopping

Foos & Drink
Computer Hartdware & Software

Travel Consumer Electronics Health & Beauth Jewelry & Watches Clothing & Accessories

CDs& DVDs Books

Major Products (Online)

Others

Table - I: Profile of the online buyers Categorization No. of Respondents Below 18 years 36 19 – 30 years 54 31 – 45 years 66 Above 45 years 44 Profession House Wife 22 Employee 102 Business 44 Students 16 Any other 16 Monthly Family Below 10,000 42 Income (in Rs.) 10,001 – 20,000 98 20,001 – 40,000 52 Above 40,000 8 Sex Male 146 Female 54 Source: Primary data collected by researcher through questionnaire

Percentage of Respondents 18 % 27 % 33 % 22 % 11 % 51 % 22 % 8% 8% 21 % 49 % 26 % 4% 73 % 27 %

Particulars Having knowledge about online shopping Not having knowledge about online shopping

Table - II: Awareness of Online Shoppers No. of Respondents Percentage of Respondents 200 100 % *** ***

81

RESEARCH ANALYSIS AND EVALUATION

International Research Journal , July 2010
Product & Servis Excellent Good Average Poor Particulars No. of Respondents 108 76 14 2

ISSN- 0975-3486 RNI: RAJBIL 2009/30097

VOL I *ISSUE 10

Table - III: Availability of online informations about
Percentage of Respondents 54 % 38 % 7% 1%

Table - VI: Buying patterns of online shoppers Particulars Search online but buy and pay at stores Search and buy online but pay in cash on delivery Search, buy and pay online

No. of Percentage of Respondents Respondents 20 10 % 122 58 61 % 29 %

Table - IV: Reasons for choosing online shopping Particulars Wide variety of products Easy buying procedures Lower prices Various mode of payments Others No. of Respondents 46 76 38 28 12 Percentage of Respondents 23 % 38 % 19 % 14 % 6%

Table - VII: Problems faced through online purchasing Particulars Respondents Problems faced with online shopping

No. of Percentage of Respondents 46 23 % 154 77 %

Problems not faced with online shopping

Table - V: Frequency of online purchasing Particulars About once annually 2 - 5 purchases annually 6 -10 purchases annually 11 purchases and above annually No. of Respondents 24 92 52 32 Percentage of Respondents 12 % 46 % 26 % 16 %

Table - VIII: Recommendations to non online buyers for online shopping Particulars No. of Percentage of Respondents Respondents Recommended 178 89 % Not Recommended 2 2 11 %

Findings of the Study • Ratio of male consumers is very high in online shopping (73%) •All the respondents are having 100% awareness about online shopping • Income of respondents largely falls in the bracket of Rs. 10,001 to Rs. 20,000 (49%) • Employees of various companies are purchasing more than others through online shopping (51%) •Maximum numbers of respondents (38%) feel that online shopping is having easy buying procedures; others think that they can have wide variety of products, Lower price of the products, various modes of payments etc. • Most of the respondents think that Availability of online informations about Product & Services is excellent (54%) • Most of the respondents purchase the products 2 to 5 times annually (46%) •Some

respondents are facing problems at the time of online buying (23%) • Maximum numbers of respondents are suggesting to non online buyers to be online buyers (89%) • Most of the respondents Search and buy online but pay in cash on delivery (61%) Limitations of the study The study has been conducted based on the data acquired from the online buyers of India only and the findings may not be applicable to other countries of the world because of socio-cultural differences. Sample size is very small. Conclusion This research shows that online shopping is having very bright future in India. Perception towards online shopping is getting better in India. With the use of internet, consumers can shop anywhere, anything and anytime with easy and safe payment options. Consumers can do comparison shopping between products, as well as, online stores.

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R E F E R E N C E
Text Books, Magazines, Journals, Websites 1. Bhatnagar, A, Misra, S., and Rao, H. R., ‘Online risk, convenience, and Internet shopping behavior,’ Communications of the ACM 2000 2.Karayanni, D. A., ‘Web-shoppers and non-shoppers: compatibility, relative advantage and demographics,’ European Business Review 2003 3. Kotler & Armstrong, Principles of Marketing, Prentice Hall of India, New Delhi 4. Ramaswami & Namakumari, Marketing Management-Planning, Implementation and Control, MacMillan India Ltd, New Delhi 5. Kumar Arun & Meenakshi N., Marketing Management, Vikas Publication, New Delhi 6. Kotler Philip, Marketing Management - Analysis, planning, Control, Prentice hall of Indian Pvt. Ltd., New Delhi. 7. Kothari C. R., Research Methodology Methods and Techniques, Wishwa Prakashan, New Delhi. 8. Ali S S, Models in Consumer Buying Behaviour, Deep & Deep Publications

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