INTERNET SHOPPING AND ITS IMPACT ON CONSUMER BEHAVIOUR
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The document discusses understanding consumers' online shopping and purchasing behaviors. It aims to study how factors like price, time, and demography influence consumers' buying decisions online. The objectives are to study awareness, acceptance, and issues around online shopping and their impact on purchase decisions. While online shopping is growing rapidly, many consumers remain hesitant due to security concerns, lack of seeing products physically, and authenticity questions. Younger consumers aged 18-30 tend to shop online most.
INTERNET SHOPPING AND ITS IMPACT ON CONSUMER BEHAVIOUR
- 1. UNDERSTANDING CONSUMERS’ ONLINE SHOPPING AND PURCHASING BEHAVIORS
- 2. Members Member Name Roll No. Sujeet Karande 127 Prasad Tuwar 134 Prathamesh Gawane 137 Siddharth Kabra 153 Nishant M.B. 176
- 3. Introduction • UNDERSTANDING CONSUMERS’ ONLINE SHOPPING AND PURCHASING BEHAVIORS. • To study relevance between the consumer buying decision with respect to price , time , demography etc. • To understand why or why not people purchase online.
- 4. Objective • The main goal is to obtain quantitative evidence describing the actuality of internet shopping in India. • Our research to study consumer behaviour on Internet Shopping is based on certain objectives: • To study awareness of Internet Shopping among the people. • To study the acceptance of Internet Shopping among consumers. • To study the impact of Internet Shopping on purchase decision of consumers. • To study the issues in internet shopping & their impact
- 5. Overview • The internet is being developed rapidly since last two decades, and with relevant digital economy that is driven by information technology also being developed worldwide. • Detailed product information and improved service attracts more and more people. • People changed their consumer behaviour from the traditional mode to more rely on the internet shopping. • The internet shopping particularly in business to consumer (B2C) has risen and online shopping become more popular to many people.
- 6. Rise in online shopping in India 1. India's online shopping registering a phenomenal 100 per cent annual growth, many retail chains and consumer durable companies are joining the Web bandwagon to tap the e shopping market. 2. According to Google, India has more than 100 million Internet users, out of which around half opt for online purchases and the number is growing every year. 3. With such a large market size, companies, right from retail shops to consumer goods, are entering the Web space to attract potential customers. 4. According to the Associated Chambers of Commerce and Industry of India (Assocham), the size of the online retail industry is expected to touch Rs.7,000 crore by 2015, up from Rs.2,000 crore now, at an annual growth rate of 35 per cent. 5. Keeping in mind this growing potential, not just large brands but even general retail chains are upgrading their sites for ecommerce, making it more convenient for customers to place online purchase orders. Source : indiatoday.intoday.in
- 7. Sample Method : Size : Location • The data is collected from Facebook – other social media & tele-calling . • Here population represents residents of Mumbai city. • Sample selected comprises of business professionals, students & other educated people of urban area only. Study undertaken use stratified sampling i.e. population is divided into a 5 strata according to age, income & occupation. For each stratum, 15 respondents were picked by random means from different areas. Sample size of research is 75. • Questions were prepared using Nominal scale & Ordinal scale as attributes studied were non parametric.
- 8. Sample Population’s Diversification Variable Percentage Gender Male 52 Female 48 Age Less than 18 5 18 to 30 58 30 to 45 28 45 to 60 5 More than 60 4 Income Less than 10000 7 10000 - 20000 9 20000 - 30000 21 30000 - 50000 11 More than 50000 12 Not applicable 40
- 9. HYPOTHESIS OF RESEARCH • Hypothesis 1: Age group between 18-30 years surf internet most. • Hypothesis 2: Gender does not play any role in internet surfing. • Hypothesis 3 : There is relation between respondent’s educational level and online shopping • Hypothesis 4: There is relation between respondent’s Income level with their buying behaviour • Hypothesis 5: Respondents find e-shopping more convenient because it is time saving, availability of alternatives to choose from & possibly less expensive products and services. • Hypothesis 6: Most of the respondents are hesitant to purchase items over internet because of security concerns. • Hypothesis 7: Usage of newer technology in online trading process is more complicated, affect buying behaviour of respondents. Most of the respondents prefer traditional buying because they do not prefer changes.
- 10. Hypothesis 1: Age group between 18-30 years surf internet most. 0 5 10 15 20 25 30 35 40 < 18 18 - 30 years 31 to 40 yrs 41 to 60 years > 60 Statistics shows that consumers between 18 to 30 age group surf the internet most
- 11. Hypothesis2: Genderdoes not playany role in internet surfing Gender does play a role in internet surfing 52% 48% Gender Males Females
- 12. Hypothesis 3: Thereisrelationbetweenrespondent’seducational level and onlineshopping 40% 36% 20% 4% Educational level Post graduate graduate Intermediate Matriculation & below
- 13. Hypothesis 4: • There is high degree correlation between income of the respondents and their purchase decision. % less than 10000 10000 - 20000 20000 - 30000 30000 - 50000 Above 50000 Not applicable 42.66 22.66 18.66
- 14. Hypothesis 5: Respondentsfind e-shoppingmore convenientbecauseit is time saving,availability of alternatives to choosefrom & possiblyless expensiveproductsand services. • Respondents find e-shopping more convenient because it is time saving, availability of alternatives to choose from & possibly less expensive products and services.
- 15. Hypothesis 6: Most of the respondents are hesitant to purchase items over internet because of security concerns. • In order to prove the above hypothesis respondents were asked to rate the drawbacks of the online shopping in the rating scale of 1-5. • It was observed that 52% of the respondents claimed security concern regarding disclosure of personal information as first rank. • 48% of them rated lack of physical approach on products/services offered, second. • While quality & authenticity of products/services offered was rated fourth by 48% of the respondents.
- 16. Hypothesis7: Usageofnewertechnologyinonlinetrading processismore complicated.Mostoftherespondentsprefertraditionalbuyingbecause theydonotpreferchanges. Consumers were asked if product/service of their requirements is being offered online at reasonable price, then will they prefer to buy that product/service online or purchase the same from brick & mortar system. It is found that 68% of the respondents claimed product/service of their requirement through traditional shop, while 32% favoured online purchases.
- 17. Conclusion: • Purpose of study was have a thorough analysis regarding different attributes of Internet Shopping with age, gender & income of the respondents. • It was found that there is no significant difference between internet surfing & gender of the respondents. While age group of 18-30 years surf internet most. Main possible reason behind this may be that younger people are more technology oriented & also they may be working in organizations where they need to work upon computer and internet. • A strong relation exists between monthly income, occupation and purchase decision of the respondents. People with higher income group usually have little time to go and purchase products/services from tradition shops because of their busy schedule. Hence in order to save time they trade online.
- 18. Conclusion (contd.) • Most of the respondents (irrespective of gender) are hesitant to trade online because of security reasons. There have been cases in the past where personal information regarding passwords & identification theft has occurred. • Besides this lack of physical approach, time required to deliver products & authenticity of the product merchandised are other factors. • Consumers do not have faith in most of the online trading sites. • Also usage of newer technology has made online trading more complicated & people resist changing, that is why consumers prefer traditional shopping as compared to online trading.
- 19. Thank You