Consumer Behavior Towards E-Retailing & Its Characteristics
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Transcript of Consumer Behavior Towards E-Retailing & Its Characteristics
Consumer Behavior Towards E-Retailing & its Characteristics
Project Guide: Submitted by:Dr. Naresh Patel Hunny Goyal (14)
Introduction
“Online shopping” as the term suggests, refers to the purchase of products or services over the internet. It can be used both for B2B and B2C transactions.
Companies use the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets.
Companies also use the Internet to convey, communicate and disseminate information, to sell the product, to take feed back and also to conduct satisfaction surveys with customers.
Customers use the Internet to buy the product online, to compare prices, product features and use the store’s after sales service facilities.
Objectives of the study
Primary Objective: Studying the Consumer Behavior towards E-Retailing in Gujarat
Secondary Objectives: To get the In depth view of the Indian customers about the E-retailing Figuring out the Factors affecting the Indian customers which motivates
them and restricts them from Online Shopping.
Research Methodology
Source of Data: Primary Data and Secondary data Research Type: Descriptive research Data Collection Method: Questionnaire Sampling Unit: Individual Consumers Size of Sample: 217 Sampling technique: Convenience sampling Data Analysis: Factor Analysis, Chi-Square & MS Excel
Research Hypothesis
Ho1: There is no significant difference between Gender and attitude towards online shopping.
Ho2: There is no significant difference between Age and attitude towards online shopping.
Ho3: There is no significant difference between Education and attitude towards online shopping.
Ho4: There is no significant difference between Income and attitude towards online shopping.
Factor AnalysisRotated Component Matrix Component 1 2 3It saves your time 0.256 0.772 0.054
it takes more time to search specific product 0.365 0.704 0.178
It gives me ease of shopping at home 0.423 0.804 0.136
It does not require travelling to far off distance 0.235 0.725 0.42
Speed of internet affects your online shopping 0.162 0.188 0.782
It takes a long time to deliver products 0.094 0.123 0.847Shopping 24x7 0.832 0.276 -0.038
Ease to make payment assistance 0.767 0.353 0.138
Lack of physical evidence affects my purchase decision 0.783 0.413 0.03
I think that online shopping results in monetary benefits 0.852 0.298 0.128
can customize the products according to my specification 0.826 0.22 0.273
get better discounts & offers on internet 0.858 0.209 0.034
The actual products do no match the products shown on 0.788 0.332 0.182
Wide choices of brands to choose 0.849 0.247 0.189
I do not get much variety in products 0.286 0.22 0.273
Result:
As we can see in the table, in the Factor 1, 3 items that are having max value shows the monetary benefits and wide variety of brands. So, this factor is labelled as “Money & Assortment Benefits”.
On the Factor 2 Column, 3 items having max value above 0.5 shows time & convenience shopping. This factor is labelled as “Efficient & Convenient Benefits”
On the Factor 3, 2 items showing that internet speed and long delivery time issues which are important. This factor is labelled as “Connectivity & Delivery Issues”
Chi-Square:Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Exact Sig. (2-sided)
Exact Sig. (1-sided)
Pearson Chi-Square .069a 1 .792
Continuity Correctionb .014 1 .907
Likelihood Ratio .069 1 .793
Fisher's Exact Test .884 .453
Linear-by-Linear Association .069 1 .793
N of Valid Cases 217
Gender Analysis
Interpretation: As we can see in the above tables, .453 > 0.05, so null hypothesis is not rejected and there is no significance difference between the gender & online shopping behavior.
Age Group Analysis
Interpretation: As we can see in the above tables, .568 > 0.05, so null hypothesis is not rejected and there is no significance difference between the age & online shopping behavior. So there is no effect of age on the consumer behavior towards online shopping.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 2.021a 3 .568
Likelihood Ratio 1.922 3 .589
Linear-by-Linear Association 1.891 1 .169
N of Valid Cases 217
Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 3.537a 3 .316
Likelihood Ratio 3.330 3 .343
Linear-by-Linear Association 2.433 1 .119
N of Valid Cases 217
Education level Analysis
Interpretation: As we can see in the above tables, .316 > 0.05, so null hypothesis is not rejected and there is no significance difference between the Education & online shopping behavior.
Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square .001a 2 .999
Likelihood Ratio .001 2 .999
Linear-by-Linear Association .000 1 .997
N of Valid Cases 217
Income Analysis
Interpretation: As we can see in the above tables, .999 > 0.05, so null hypothesis is not rejected and there is no significance difference between the Income & online shopping behavior.From this we can say that there is no effect of income on the consumer behavior towards online shopping.
Excel Analysis
42%
58%
Gender Analysis
Female
Male31%
28%
23%
18%
Age Analysis
18-25 years
26-30 years
31-35 years
36 & above
45%
1%
1%
53%
Level of Education
Graduate
Interme-diate
Matricu-lation
Post Grad-uate
21%
59%
20%
Income Analysis
> 15000
15000-25000
25000 or Above
31%
39%
30%
Time Initiation of Shopping
1-3 years
Less than 1 year
More than 3 years
39%
29%
32%
Frequency Of Shopping
Frequently (once a month)
Once in a year
Once in six month
21%
22%
28%
20%
8%
Things which Customers Prefer to shop the most
Books Clothes & Accessories Mobiles & Electronics Music & Softwares
28%
13%
20%
13%
25%
Most Shopped Online Sites
Flipkart
Snapdeal
Myntra
Homeshop18
Others
51%41%
8%
Payment Mode Analysis
Cash on De-livery
Debit/Credit card
Netbanking
24%
26%
6%
30%
10%
5%
Reasons For Shopping
Saves TimeSaves MoneyMuch Easier ShoppingMore EfficientFriend Re-ferralsOthers
21%
8%
57%
14%
Things Which E-Retailers must Improve
After Service
Website Security
Delivery on Time
Packing of Products
Compan
y Pro
file & Bra
nd Iden
tity
Securit
y Cer
tifica
ted
Customer
Servic
e
Detail
ed pro
duct In
fo
Variet
y of p
roducts
Cost o
f Deli
very
Speed of
Deli
very
Simplic
ity of
purchas
e pro
cess
Prote
ction
of priv
acy
Ability t
o tra
ck th
e pro
ducts
Web
site r
espon
se sp
eed
Web
site i
nterfa
ce
Perso
nalize
d offer
s/ads
Features valued by Customers
95%
5%
Do they Continue to Shop Online?
Yes
No
Bad Custo
mer Ser
vice
High Sh
ipping Cos
t
Warra
nty C
laims
Refu
nd Poli
cy
Long
Deli
very
time
Low Tr
ustwor
thines
s
Prod
uct Non
perfor
mance
as sh
own
Barriers in Online Shopping
Major Findings
Majority of the Online Shoppers are Male and Age does not play major role in their behavior towards online shopping.
Most of online shoppers are well educated having degrees of Graduation & Post Graduation, while income does not play major effect.
Most of the Online shoppers have adopted online shopping recently. Electronics, Apparels & books are among the products that most
consumer purchase online. Money benefits, wide variety of products, convenience, Internet
connectivity & Delivery issues are important factors that consumers consider while shopping online.
Limitations of the study
The Survey was conducted among selected people and it doesn’t reflect the real opinion of the entire population.
The respondents give opinion differently at different times because of their psychological temperaments. This will affect the survey.
It is difficult to induce the respondents to provide complete information. The sample size itself is relatively small. To accurately evaluate
consumers’ perceptions of online shopping, a larger sample size is desirable.
Conclusion
Online Shopping is the future of shopping which is not yet fully adopted by the consumers due to the barriers like Safety & Long Delivery time issues.Having great benefits to offer like Monetary benefits, Convenient & Time saving, Wide variety & Personalized offers etc. Thus, It is apt to say that “The future is here. It's just not widely distributed yet”- William Gibson
Thank You…