A STUDY ON CONSUMERS’ BEHAVIOUR TOWARDS ONLINE

SHOPPING WITH REFERENCE TO ERODE CITY

INTRODUCTION:

The chapter provides the background of online shopping. It also discusses the prospects,
challenges and trends of online shopping. There has been a dramatic change in the way of
consumers altered their way of shopping in the past decade where consumers are looking for a
more convenient and time saving shopping experience.

Website becomes the essence of online business to show their services and products. Internet
gathers all competitors and consumers in one place. It brings new lane to promote, advertise
products and services in market. This new innovative pattern of shopping not only brings a great
number and wide range of merchandise to consumers, it also offers a huge market and numerous
business opportunities.

As one of the most convenient methods of shopping, online shopping provides functional as well
as practical benefits. Consumers perceive that buying through the internet provides them with the
availability of products and services at a lesser price when compared to the offline stores.
Consumers are no longer bound by timings or location to make their transactions. Purchasing
products is only a few clicks away as a result of a speedy growth and development of e-commerce.

An increase in online shopping activities has forced companies to offer their products and services
online to gain competitive advantage in the market place. The benefits for retailers are many and
include their ability to reach and target a large number of people at the same time across the world,
targeting people with different demographic profiles and improving the efficiency and
effectiveness of the business. A market consists of a potential consumers sharing a particular need
or want who might be willing and able to engage in exchange to satisfy the need or want. Size of
the market depends on the number of people who exhibit the need and want.

Traditionally a market was the place where buyers and sellers gathered of consumers.
Understanding the consumers is not a simple task. Consumers may state or wants but they act
otherwise. So the market must study consumers target, perception, shopping habits and attitude.
STATEMENT OF PROBLEM:

Due to the rapid development of the technologies surrounding the internet, companies which
are interested to sell their products through their website even though buyers and sellers can be
thousands of miles apart, may belong to different parts of the world, might speak different
languages also. Since internet is a new virtual medium and so many potential consumers, the online
retailers is most important to understand the wants and needs of consumers. The importance of
analysing and identifying the factors influencing the consumer, when he or she decides to purchase
on the internet is vital because new virtual market will bring significant differences to the
consumers.

REVIEW OF LITERATURE:

1. Chang, et al. (2014) studied on categorization of variables which drive online shopping
activity. According to their study, features are divided into three main categories. First one is
perceived characteristics of the web sale channel which include risk, advantage, online
shopping experience, service quality, trust; second category is web site and product
characteristics which are risk reduction measures, web site features and product
characteristics; and the last category clarified by authors is consumer characteristics.
Consumer characteristics are driven by various types of features, consumer shopping
orientations, demographic variables, computer, internet knowledge and usage, consumer
innovativeness and psychological variables.

2. IndrilaGoswamiVarma&MsRupaAgarwal (2014) Social & emotional needs of customers

are not satisfied by online shopping. A big segment of home makers spend money liberally but
when it comes to online shopping they become conservative. Offline shopping leads to impulse
buying and immediate gratification whereas social media is limited to creating awareness and leads
to information search only.
3. Msasmatara Khan &DrChandrnahauns R Chavan(2015) In Purchase of electronic goods
Financial risk and non –delivery risk has negative effect on attitude towards online shopping
behavior, hence websites should be made more safe and secured. Online buying will become more
popular in future as many people suggest it to each other. Effective marketing strategies should
be formulated to target the society.

OBJECTIVES OF STUDY

• To present the socio economic profile of online shopper.

• To identify the factors influencing online shopper’s buying behaviour.
• To analyse the impact of online shopper’s purchasing decision.
• To ascertain the attitude of online shopper towards mobile application.
• To study the level of satisfication of consumers towards online shopping.

RESEARCH METHODOLOGY

The present study is based on both primary and secondary data. The Factors influencing Online
Shoppers Behaviour in Erode city was made by personal discussions, online records by walk-
through survey to arrive at technically feasible conclusions.

DATA COLLECTION

• Primary data
• Secondary data

• PRIMARY DATA

A well-structured questionnaire which comprises both close ended and open ended questions was
used for collecting data from the target respondents. The respondents forming an integral part of
the source of primary data are the online shoppers of Erode city.
 • SECONDARY DATA

The secondary data has been collected from different text books, journals, magazines, different
websites. This data has been largely used in providing the theoretical background of the subject
and profile of the consumers behaviour towards online shopping.

HYPOTHESIS OF THE STUDY:

➢ NULL HYPOTHESIS (H0)

There is no significant difference between the customer satisfaction towards
THE ONLINE SHOPPING.
➢ ALTERNATIVE HYPOTHESIS (H1)
There is significant difference between the customer satisfaction towards THE
ONLINE SHOPPING.

QUESTIONNAIRE

1.Name:_____________

2. Age

a) Below 20 years b) 21-30 years

c) 31-40 years d) Above 41 years

3.Gender

a) Male b) Female
4.Monthly Income

a) 20000-30000 b) 30000-40000

c) 40000-50000 d) Above Rs.50000

5.Occupation

a) Student b) Employee

c) Business d) Homemaker

6.What is your mode of online shopping?

a) Mobile phones/Tablets b) Laptop

c) Browsing centre d) Others

7.What type of products do you usually purchase?

a) Cloths/Accessories b) Cosmetics

c) Books/Magazines d) Home/Furnishing Products

8.Which application do you use most?

a) Flipkart b) Amazon

c) Myntra d) Others

9.How frequently did you purchase on online shopping?

a) Festival seasons b) Family functions

c) Gifts to relatives d) Others

10.Where did you get information about the products?

a) Family/Friends b) Shopping websites

c) TV Ads d) Social networking sites

11.After frequent purchase, do you receive any offers and vouchers?

a) Yes b) No

12.What is your mode of payment?

a) Cash on delivery b) Debit/Credit card

c) Internet Banking d) EMI

13.Which factors influence you to buy products in online?

a) Variety of products b) No hidden cost

c) Wide range of products d) Others

14.Do you convenient to purchase things in online?

a) Yes b) No

15.What are the major problems you faced while purchasing in online?

a) Delay b) Inferior quality

c) Return problem d) Others

16.Do you face any risk of receiving wrong products?

a) Yes b) No

17.What was the average cost that you spend while purchasing?

a) Below Rs.1000 b) Rs.1100-2500

c) Rs.2600-5000 d) Above Rs.5100

 18.Satisfication level of online shopping:

CATEGORY HIGHLY SATISFIED NEUTRAL DISSATISFIED

SATISFIED
QUALITY

PACKING

PRICE

CUSTOMER
SERVICE

19.Suggestions, if any

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