Magazine 2015
International Peer-Reviewed Journal
RESEARCH HORIZONS, VOL. 5 JULY 2015
INDIAN CONSUMERS’ READINESS FOR ONLINE SHOPPING?
Haseena Sayed, Ruchi Dubey Chaturvedi, Taskin Patel
ABSTRACT
The present study aims at studying the consumer behavior among Indians, in terms of Online Shopping.
Online shopping trend has grown so large in many countries, that many companies instead of investing in
building malls, invest in online websites and web advertising. The popularity of Online Shopping is growing
fast with the advent of new technologies and the creation of interfaces that allow the customers to feel like
they are really in a shop. In the present study a comparative analysis model was designed in such a way
that comparisons could be made between two age groups: young v/s middle adulthood and also between
genders in both the age groups. The sample comprised of 100 respondents, out of which 50 respondents
were from the age group of 18 - 40 years (25 males and 25 females) and 50 were from the age group of 41-
6
0 years (25 males and 25 females). Four zones of Mumbai were selected and technique of random
sampling was adopted in selecting the participants. All of them were literate and belonged to Middle class.
Statistical techniques used were Descriptive Analysis, Chi Square and Correlational Analysis. Results indicate
that young adult males show strongest preference for online shopping and have reduced their traditional
shopping modes. While only fifty percent young females adults are showing this kind of shift. Even though
people belonging to middle adulthood are occasionally indulging in online shopping, they still prefer
traditional modes of shopping. Hence, they are selectively using online shopping only for booking, ticketing
and purchasing gifts. Young adult females and Middle age adults have expressed apprehensions about
online shopping relating to delays, quality and insecure online money transactions. However, the overall
higher receptivity of the whole sample for online shopping could be attributed to the fact that they are
residing in busy metropolitan city like Mumbai. Online shopping is providing them unique benefits like
discounted rates, better after sale services, door step delivery and freedom to purchase goods at any time.
Similar observations were also made from the three Case Studies. The three entrepreneurs reported that
online purchase (shopping) is here to stay in India and will keep increasing in the years to come, as it does
not necessitate purchase of work place/office, helps increase customer reach, saves money on traditional
modes of advertising. Further, the facilities of ‘Cash on Delivery’, discounted price options, convenience of
shopping from the comfort of one’s home, short delivery span, also attracts customers to shop online. The
conclusion of this study can be generalized to enhance the culture of online shopping in India, thereby
reducing the stress and strain related to physical shopping.
Key Words : Online shopping, metropolitan city, environmentally friendly, unique benefits, web advertising.
Introduction :
The present study aims to highlight the receptivity of the urban middle class Indians towards online
shopping and the reasons for indulging in it. It is of special significance as in a busy Metropolitan city like
Mumbai, online shopping would help in reducing the stress and strain related to shopping which involves
physical movement outside ones residences.
Online shopping has grown to new heights over the last decade and shows no signs of slowing down.
The internet has brought practically every store in the world to the finger tips of anyone with internet
access.
Online shopping has been created for those shoppers who do not have the time and money to go to a
shop and they would rather go online and buy their things there. There has been a vast increase in the
variety of products that are available online for the shoppers to buy. Online shopping has become a
trend now with the new technologies and the interfaces that have allowed the customers to feel that they
are really in a real shop. Online shopping has grown so large that many companies are not investing in
buildings and mall spaces, rather in online websites and web advertising. Consumers across the globe
are increasingly swapping crowded stores for one click convenience as online shopping becomes safe
and popular option.
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International Peer-Reviewed Journal
Review of Literature :
RESEARCH HORIZONS, VOL. 5 JULY 2015
Online shopping is the process of researching and purchasing products and services over the internet.
The earliest online stores went into business in 1992, and online retailing took over a significant segment
of the retail market during the first decade of the twenty first century, as ownership of personal computers
increased and established retailers began to offer their products over the internet. The growth rate of
online shopping is gaining pace in India. India is the third largest country in this race lacking behind only
USA and china. The growth rate of online shoppers is more than 50 % while the world’s average growth
rate is just 10-12%. The role of Media, celebrity endorsements and advertisements in this is impactful.
A research was conducted on the Influence of Media Marketing (TV, Movies, Magazines, Internet) on
Adolescent Girls by Erica Lauren Sanders (2011). The survey was distributed to the students at the
Academy of Canyons, California. The results of this research showed that media had a huge influence on
teenage girls, even more than they may be aware of. Media influenced various factors such as, body
image, sexual purism, daily lingo, buying trends and initiated a sex obsessed culture.
A paper by Regent Business School (2013), reports the results of an exploratory study which examined
the influence of social media on the purchasing behaviour of youth, by surveying a convenience sample
of 150 students at a large university in South Africa. It was found that youth are increasingly turning away
from traditional advertising media and actively seeking out social media platforms and make frequent
purchases using information obtained from social media platforms because they regard it as being
sufficient for decision-making, reliable, convenient, and involves less time wastage.
Another Research conducted Pandey, was to study the Impact of Celebrity Endorsements on young
generations through TV. A study was conducted on 300 youngsters in graduation and post graduation.
The results revealed that advertisement played a vital role in introducing a new product in the family list
and making better choices during shopping. After watching an endorsement, most respondents wanted
to buy products that were endorsed by female celebrities. Respondents were also of the opinion that TV
advertisements helped them make better choice during shopping. Respondents preferred buying branded
products over non- branded, which are usually endorsed by celebrities.
The review shows that attitude towards online shopping and intention to shop online is not only affected
by the ease of use, usefulness and enjoyment, previous online shopping experiences, and trusts in online
shopping. Therefore this study aims to examine and find out consumers perception towards online
shopping.
Objectives
1.
2.
3.
To measure the perception, beliefs and attitude of consumers in India towards online shopping.
To identify the reasons why Indians still prefer traditional method of shopping over online shopping.
To understand the internet shopping usage patterns, benefits and problems faced by the Indian
Consumers.
4.
To study changes in Consumer behavior in relation to Age and Gender.
Hypothesis
H1: The younger generation (18 yrs – 40 yrs) will indulge in Online shopping more than the Older generation
(
41 yrs – 60 yrs).
H2: Men will indulge in Online shopping more than the women.
H3: There will be a shift observed in the Indian Consumers attitude towards Online shopping with them
reporting more benefits and lesser drawbacks.
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International Peer-Reviewed Journal
RESEARCH HORIZONS, VOL. 5 JULY 2015
Methodology :
Sample
The sample comprised of 100 respondents, selected randomly from four zones of Mumbai. 50 respondents
were from the age group of 18 - 40 years and 50 from the age group of 41-60 years. Each Age Group had
2
5 male respondents and 25 female respondents.
Three Case Studies would be conducted on Entrepreneurs who utilize online shopping strategies in their
business.
Variables :
Independent Variable
1
.
.
Age Groups having two levels: 18-40 Years & 41-60 Years
Gender: Male & Female
2
Dependent Variable
1
.
.
Awareness and Frequency of use of online shopping.
2
Online shopping being affected by issues of Safety, Choices offered, After sale services and
Convenience.
Tools :
A Self developed questionnaire would be used on the 100 participants to measure the Consumer Behavior
of Indians towards online shopping. A semi-structured Interview schedule was developed for the Case
Studies.
Procedure :
The Self Developed Questionnaire was administered personally to all the 100 participants in the four
zones of Mumbai. Further, the Semi-structured Interview schedule was used for obtaining responses
from the three Entrepreneurs who utilize online shopping strategies to promote their business ventures.
Results and Discussion :
I)
Descriptive Analysis
1)
Age Group Differences
Table 1: Percentage of time spent on Internet per day by the Two Age Groups (N = 100)
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RESEARCH HORIZONS, VOL. 5 JULY 2015
In the age group of 18-40 yrs 25% of the respondents spend 0-10% of their time on internet per day, 25%
spend 10-30% of their time on internet per day, 15% spend 30-50% of their time on internet per day, and
3
0
5% of respondents spend 50% and above. In the age group of 41-60yrs, 65% of the respondents spend
-10% of their time on internet per day, and 12% spend more than 50% of their time on internet per day.
This leads to the acceptance of H1, as usage of Internet was more by the Younger Age Group.
Table 2: Percentage of Awareness of the Two Age Groups about Online Shopping
(
N = 100)
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5% of the respondents in the age group of 18-40 yrs are aware of the medium of online shopping as
compared to the age group of 41-60yrs, where only 87% of the respondents are aware of the medium of
online shopping. This supports H1.
Table 3: Percentage of participants in the Two Age Groups who have done Online
Shopping on a regular basis (N = 100)
8
7% of the respondents in the age group of 18-40 yrs have done online shopping on a regular basis
relative to the age group of 41-60 yrs, where only 67% of the respondents have done online shopping.
This once again offers support hypothesis H1.
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International Peer-Reviewed Journal
RESEARCH HORIZONS, VOL. 5 JULY 2015
Table 4: Percentage of Two Age Groups who consider online shopping to be safe,
convenient, better in after sales services and offering greater choices (N = 100)
8
2% of the respondents in the age group of 18-40 years have positive outlook towards online shopping,
while only 47% of the respondents in the age group of 41-60 years voice this. This offers complete
support to hypothesis H1 and partial support to H3 as higher age group does seem to have some
doubts about online shopping.
Table 5: Percentage of Two Age Groups who are satisfied with Online Shopping
(
N = 100)
88% of the respondents from the age group of 18-40 years were satisfied with online shopping purchase,
as compared to 81% in the age group of 41-60 years. This is in support of hypothesis H3 where a
favorable shift is observed among the Indian consumers regarding online shopping.
Table 6: Percentage of people in the Two Age Groups who have reduced convential
shopping modes (N = 100)
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International Peer-Reviewed Journal
RESEARCH HORIZONS, VOL. 5 JULY 2015
6
3% of the respondents in the age group of 18-40 years have reduced the frequency of traditional
shopping due to online shopping, However, the respondents in the age group of 41-60 years, 75% still
prefer traditional shopping methods. This offers complete support to hypothesis H1 and partial support
to hypothesis H3 as senior age group still has some misgivings about online shopping.
Table 7: Reasons for Two Age Groups to do online shopping (N = 100)
In younger age group only 37% are worried about risk of the use of Credit/Debit cards in Online shopping,
relative to 57% of Older age group. Younger age group also feel that Online shopping has lesser
entertainment component although it saves their time. However, these two factors do not appear to be
affecting the Older Age Group much.
1
) Gender Differences
Table 8: Percentage of Males ve Females who consider online shopping to be safe,
convenient, better in after sales services and offering greater choices (N = 100)
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International Peer-Reviewed Journal
RESEARCH HORIZONS, VOL. 5 JULY 2015
9
2% of the male respondents consider online shopping safe while only 76% of the female respondents
feel the same. This supports H2.
Table 9: Percentage of Males vs Females in terms of items bought from Online Shopping
N = 100)
(
Majority of the male respondents purchase clothes and electronic gadgets through online shopping,
whereas majority of the female purchase clothes, cinema tickets and airplane tickets through online
shopping. It reflects gender differences with regard to online shopping patterns. It offers support to H2.
Table 10: Percentage of Males vs Females who have reduced conventional shopping
modes (N = 100)
80% of the male respondents and 48% of the female respondents have reduced the frequency of traditional
shopping due to online shopping. This offers complete support to hypothesis H2 as Males do online
shopping more than females. Also offers support for H3 as a shift in shopping trend is observed.
Table 11: Percentage differences between Males & Females regarding the reasons for
preferring Online Shopping (N = 100)
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RESEARCH HORIZONS, VOL. 5 JULY 2015
Males and Females are well matched in their reasons for doing online shopping, even though Females
indulge in it lesser. Both consider that major benefits are door step delivery system and reasonable
prices of goods.
II) Non Parametric Analysis: Chi Square
Table 12: Chi Square value for the Statement: Which Commodities do you usually
purchase online? Options: a. groceries b. cosmetics c. Books/CDs d. Clothes
e. Furniture f. Electronic Gadgets g. Toys h. Cinema tickets i. Airplane/ Railway
tickets j. Others
Table 13: Chi Square value for the Statement: What are the kinds of problems you have
faced during online shopping? Options: a. Delay in delivery b. Quality of products
c. Non-delivery d. choices offered e. high prices
Table 14: Chi Square value for the Statement: How often do you do Online Shopping?
Options: a. often b. very often c. Rarely d. Sometimes e. Never
Table 15: Chi Square value for the Statement: What are the reasons which stop you
from doing online shopping on a regular basis? Options: a. Unaware of the medium of
online shopping b. risk of credit/debit card transactions c. lack of time d. No
entertainment value
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International Peer-Reviewed Journal
III) Correlational Analysis
RESEARCH HORIZONS, VOL. 5 JULY 2015
III) Case Studies
After taking the viewpoint of 100 respondents of their preference for online shopping, the researchers
have taken the viewpoint of three entrepreneurs who have their business presence online and have given
their feedback on the reasons of customers being attracted to purchase online and the deterrents of
online purchase.
Case Study -1: Purav Shah – Entrepreneur- ‘PURAV DIAMONDS’ since 2009
International Diamond merchant operating from Bandra Kurla Complex- Mumbai, has business in China,
Hong Kong, New York, and India. Mainly in B2B.
Purav is a strong recommender for online shopping as personally he has frequently purchased books,
clothes, electronic gadgets, travel plans, etc. online and not experienced any problem in online purchases.
As an Entrepreneur, Purav offers online purchase facility to his clients. His business website gives detailed
information about his product using which his clients can make informed business decisions.
International clients use this online facility to purchase for 80% of the business orders. While his international
clients have no problem with online business dealing, Purav faces problem with his Indian customers
who mainly place offline orders due to lack of trust with credit cards and the amount of purchase being
high.
Purav suggest that in order to increase online business with his Indian clients, a safety net for online
business should be provided i.e. security for use of credit cards. Secondly, a brand promise for the
product should be given (i.e. return if you don’t like policy)
According to Purav, people are generally getting more comfortable with online shopping due to its sheer
convenience and he thinks that slowly this bubble of being wary and suspicious of online shopping will
soon burst.
Case Study 2: Mr. Zaid Siddiqui- Entrepreneur- ‘BANANA CARTEL’- an online T-shirt
printing venture started in 2010.
B2C- only in India. 90% of sales take place via his online business presence. Marketing strategies adopted
by Zaid for his online business includes a well developed website and strong presence on Face Book
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RESEARCH HORIZONS, VOL. 5 JULY 2015
and Twitter. Social media marketing plays a very important role for his brand visibility and customer
relationship.
Zaid’s online sale has increased dramatically in the past 3 years due to the ‘Cash on Delivery’ online
purchase provision. Once his customer developed faith in his production, further products are purchased
via use of credit/debit cards.
Banana Cartel attracts and maintains clients online by providing them timely and short delivery span,
good replacement policies and providing constant updates of his latest designs.
This entrepreneur feels that online purchase can increase in India if the customer develops trust factor in
the business venture, increase in the use of credit/debit cards for purchase and the change of Indian
customer mentality of inspecting and trying out products before purchase.
Zaid propagates online purchase due to convenience of exposure to a wide range of brands online,
availability of discount options, home delivery and multiple payment options.
Case Study 3: Mr Hussein Bharmal –Entrepreneur- ‘JOTZ’- supplier of waist leather
belts started in 2006
B2B and B2C – Has presence in Mumbai and Bangalore.
Though this entrepreneur started his venture operating from a small office space (at home) and visiting
clients in person to show his product, today he conducts 100% of his business online. An absolute
promoter of online purchases, he not only does all his personal shopping for himself and his family
online, but also encourages his clients to place orders online giving them facilities of ‘Cash on Delivery’,
‘
return if not satisfied on inspection’ policy and timely delivery of orders.
Though this entrepreneur does not have his own website, he is actively present on Face Book and
Instagram which he uses to display his product details. According to Mr. Bharmal, online business
presence has saved him from blocking funds in an office and storage space as he places supply orders
based on customer order placement. Also he is not required to spend on advertising his products in the
traditional manner as advertising online proves very cost effective.
As Jotz belts are mainly for the upper class and the office goers, they are internet savvy, users of plastic
money for shopping and face time constraints for shopping of such daily use items. Hence, the success
of his online business presence. But, this entrepreneur faces a block for sales with this medium when it
comes to the middle class who will purchase only with personal inspection of the product and do not
use internet for shopping purposes.
On a comparative note between Indian Shopping Websites and International Shopping Websites, all the
three entrepreneurs feel that Indian websites such as Flipkart, Snapdeal, Yebhi.com, Jabong, etc. have
come more or less on par with International ones in terms of quality and user interface. While Indian
websites use better product filters and product descriptions, they at times tend to have information
overload as compared to foreign ones which keep text to the minimum. So it offers support to Hypothesis
3
as there is a shift in the Indian consumers with them becoming more receptive towards online shopping.
Conclusions
The current study has made an attempt to understand the attitude and behavior of Indian consumers
towards Online Shopping. Statistical Analysis of the data has given clear indication of increasing
significance of online stores in the lives of people residing in Mumbai. The ease and convenience provided
by these stores 24*7 has made shopping very easy and cheap for shoppers in Mumbai. Males in the age
group of 18-40 years strongly prefer online shopping relative to their female counterparts as well as the
older age group. Maximum use for online shopping is for buying essential household items, gifts and for
booking tickets. However, some misgivings still remain regarding online shopping, like, misuse of debit/
credit cards as it involves unsecured online payment, delay in delivery, no entertainment value and
quality issues. This is the reason that the older age group and about fifty percent of even young females
still prefer traditional modes of shopping.
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International Peer-Reviewed Journal
RESEARCH HORIZONS, VOL. 5 JULY 2015
From the Case Studies it can be concluded that all the 3 entrepreneurs (cases) believe that online
purchase (shopping) is here to stay and will keep increasing in the years to come. From the entrepreneur’s
viewpoint, online sales does not necessitate purchase of work place/office, help increase customer
reach and saves money on traditional modes of advertising. Facilities of ‘Cash on Delivery’, discounted
price options, convenience of shopping from the comfort of one’s home, short delivery span, etc.,
attracts customers to shop online.
The conclusion of this study is that online shopping is a useful and eco-friendly option for people in a
busy metropolitan city like Mumbai. Its popularity with time is only going to increase with further
advancement in technology. This industry will contribute substantially to the economic growth of India.
However, such companies need to urgently address the concerns of their female customers and aged
customers.
Limitations
1)
The research was conducted only in one urban area of India - Mumbai city.
2)
The sample size was only 100 and comprised of respondents only between the age of 18 - 60 years.
3)
Variables like, socioeconomic status, family size, birth order, nuclear/ joint family type, were not
investigated.
Significance of the study
1)
The study’s findings can be used for understanding the changes in the Indian Consumers attitudes
and behavior towards online shopping thereby converting their potential consumers into active
consumers.
2)
More Age groups, Socioeconomic strata’s and Geographical locations can be studied to understand
the range of internet usage patterns of the Indians.
3)
The observations of studies can be used by the business strategist, to create awareness and promote
online shopping as an option, as it is environmentally friendly; conserves time, energy and effort;
provides wide variety of choices; lesser prices of goods; door step delivery and better after sale
services.
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Dr. Haseena Sayed, Associate Professor, Dept. of Commerce, Jai Hind College, Mumbai
Dr. R. B. Chaturvedi, Assistant Professor, Dept. of Psychology, Jai Hind College, Mumbai
Ms. Taskin Patel, PG Student, M.Com. II, Jai Hind College, Mumbai
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