Consumer Preception Towards Online Shoping

Council for Innovative Research www. cirworld. com International ledger of solicitude & information engineering Volume 1, zero(prenominal)1, May, 2012 CONSUMERS PERCEPTION TOWARDS ONLINE SHOPPING- THE CASE OF PUNJAB Pawan Singh Rat time of day mo determination India has more than 100 billion profits users out of which champion atomic number 53-half opt for online purchases and the number is hike sharply e truly year. The evolution in the number of online let outpers is greater than the growth in internet users, indicating that more profits users atomic number 18 becoming booming to grass over online.The content of procure without going away your place is of great interest to many consumers. Not notwithstanding does online win offer re solelyy pricy deals, but also brings optimal contrivance to the consumers. Moreover, the use of Internet tools for price searching and relation contributes an surplus advantage in consumers final decision, as they sack u p purchase their desire outputs in the lowest open price. This paper focuses on the understanding of demographic profiles of adopters and non-adopters of online keep going.For this decide the data from 400 respondents was collected in the form of questionnaires. The study has been conducted in 3 cities of Punjab, a sample of urban respondents were selected from the Jalandhar, Ludhiana and Amritsar The paper also analyses the heterogeneous reasons for espousal and non- credence of online shop. KEYWORDS Online Shopping, Consumer Perception, agent outline, Adopters and Non-Adopters of online shopping REVIEW OF LITERATURE Bellman et al (1999) investigated various predictors for whether an individual will purchase online.These authors concluded that demographic variables, such(prenominal) as income, education and age, dumb fix a modest impact on the decision of whether to buy online, whereas the head-nigh important determinant of online shopping was previous behaviour, such a s earlier online purchases. Standing (1999) tell that traditionally sell change of location agencies have acted as intermediaries between airline companies and exclusivelysale make a motion companies and the consumer. The Internet and the World Wide weave provide a whole new set of challenges and opportunities for this business sector.The major threat stems from airlines and wholesale activate companies offering their proceedss and services contributely to the customer without the assistance of travel agencies. king-size online agencies have gained significant attention in the travel industry and provide some evidence of a restructuring of the travel industry sector. Leong (2001) examined the selling strategies select by local hotel establishments in the competitive hospitality industry. It also analyses the adoption and fictitious character of information technology in strategic commercializeing.It was found that al some hotels seemed to have embraced the marketing c oncept, given the existence of extensive marketing plans. Although most hotels appe atomic number 18d to have successfully incorporated information technology into their marketing campaigns, the take of commitment seemed to be insignificant. Following a brief comparison with a similar US study, the paper concludes that there ar merely barbarian differences between US and Singapore hotels in terms of their marketing practices. Parasuraman (2002) express that the motivations for this special exsert and propose a conceptual framework pertaining to the issues theme.Using this frameworks a backdrop, they then offer an overview of the remaining articles by segmenting them into categories and discussing their family relationship to the framework. They conclude by highlighting interrogation avenues for augmenting our understanding of marketing to and parcel customers through the Internet. Sigala (2003) stated that despite the exponential growth of e-commerce on the Internet, lowly is still known on how the new medium is transforming marketing concepts/practices and their effectiveness.This empiric study aims to fill in this gap. This article start-off analyzes the Internets capabilities and features as well as the new virtual market space that Internet advances have fostered. After reviewing models and strategies for Internet marketing, an Internet marketing mix is proposed based on the Internet strategies of hotels in Greece that were investigated. Know and Lee (2003) explored consumers concerns roughly coverment shelter and its relationship to online shopping attitude and actual purchases.They observed a controvert relationship between attitude towards online shopping and concerns roughly online payment trade protection. Consumers with a positive attitude seem to be little concerned or so payment security. Bechrer (2004) stated that Internet marketing is a field that is chronic to grow, and the online auction concept may be defining a whole new and unique distribution alternative. Very few studies have examined auction sellers and their INTRODUCTION With nearly half of the Indian population being newborn and net savvy, there has been an extra ordinary rise in the poem of online shoppers.The recent growth in the mall culture in the unpolished has in fact made consumers more alive(predicate) about dissimilar options and encouraged them to search and eventually purchase online. India has more than 100 million internet users out of which one half opt for online purchases and the number is rising sharply every year. The growth in the number of online shoppers is greater than the growth in Internet users, indicating that more Internet users are becoming comfortable to shop online.Until recently, the consumers generally visit online to reserve hotel rooms and buy air, railing or movie tickets, books and gad puts and gizmos, but now more and more offline product like clothes saris, kurtis, T-shirts shoes, and designer lin gerie, consumer durables are being purchased online. At present the market is estimated at Rs. 46000 crore and is growing at 100 pct per year. The two most commonly cited reasons for online shopping have been convenience and price. The capability of purchasing without leaving your place is of great interest to many consumers.Not only does online shopping offer really good deals, but also brings optimum convenience to the consumers. Moreover, the use of Internet tools for price searching and comparison provides an additional advantage in consumers final decision, as they can purchase their desired products in the lowest available price . On the contrary, privateness and security have been the great concerns, resulting many people to browse the Internet for informational matters than for buying online. 1 rascal www. ijmit. com Council for Innovative Research www. cirworld. om International journal of perplexity & breeding engine room Volume 1, No 1, May, 2012 internet marketing str ategies. This research examines the internet auction phenomenon as it relates to the marketing mix of online auction sellers. The data in this study indicate that, whilst there is great diversity among businesses that apply online auctions, distinct cost leadership and differentiation marketing strategies are two evident. These two approaches are further distinguished in terms of the internet usage strategies employed by each crowd.Ryan (2004) conducted a research on the mosaic of institutional issues associated with gaining credibility for internet marketing standards. Strong claims for a predominantly self-regulatory approach are reviewed in conjunction with other agentive roles that suppress credibility, namely competing internet worldviews, weak moral coherency and offline ambiguity about respective institutional roles, especially as regards moral dimensions of notions of regulation and self-regulation. Wang (2006) conducted a research to examine the current use and predict future Web-based marketing activities of U. S. onvention and visitor bureaus. A survey was sent to 600 randomly selected American host and visitor bureaus with a focus on assessing the applications included in the bureaus Web sites, their Web site promotion techniques, and customer relationship management programs in relation to these Web sites. The results indicate that most bureaus Internet marketing activities are relatively limited, focusing on providing travel information to prospective visitors. Bengtsson (2007) stated that adopting the Internet for advanced marketing operations opens up challenging opportunities for firms of all sizes.However, such adoption might destroy investments in present market channels and thus has the characteristics of radical innovation. The results of synopsis show that composition of reckons on which firms base their decision to adopt advanced Internet-based marketing operations varies significantly with firm size. Chin ting (2010) stated tha t few naturalise or educational studies have simultaneously explored both internet marketing and organizational commitment, and of those that have, only direct effects were examined. This study clarifies the relationship between school organizations internet arketing and teachers organizational commitment by examining the mediating role of teachers job involvement and job satisfaction. RESEARCH OBJECTIVES The study has been conducted to report the consumers perception towards online shopping in Punjab. The specific objectives of the study are ? ? To bring up the demographic profile of adopters and non-adopters of online shopping in Punjab. To identify the various reasons for adoption and non-adoption of online shopping by the consumers of Punjab DATABASE AND METHODOLOGY The research is primarily descriptive in nature.The data was collected in the form of questionnaires. The study has been conducted in 3 cities of Punjab, a sample of urban respondents were selected from the Jalan dhar, Ludhiana and Amritsar. The survey was carried out on 450 respondents. However, 31 Questionnaires were found to be incorrect or irrelevant, so a chalk up of 50 questionnaires were deliberately rejected. Hence, the study sample was reduced to 400 respondents. The data was collected personally (and via emails) in the months of January 2012 to March 2012. The questionnaire was pretested in order to identify possible problems in terms of clarity and accuracy.Thus, several changes were made in order to improve the presentation of the items, based on comments and feedback. Apart from demographic-related questions, fivepoint Likert plate was utilise for all the questions concerning consumers expectations and perceptions about the online shopping. Most of the Respondents of the age group 36-45 old age (44. 6%) were found to be adopters of online shopping (Table 1). Most of the Males (55. 3%) were the adopters as compared to females, where 53. 7% were non-adopters. The adopters were by and large post graduates (48. 9%) with monthly income in the rove of Rs. 0000-Rs. 30000. The respondents those who use internet from 5 to 7 hours a day were found to be adopters of online shopping. The consumer responses ranked the retail websites at Number 1 with Electronics and comparison shopping websites at Number 2 and 3 respectively. Home items were ranked at Number 10 by the Punjab consumers (Table 2) Table 1 demographic profile of Adopters and Non Adopters Demographics Adopters No. Age 15-25 26-35 36-45 Above 46 Gender effeminate Male 84 104 44. 6% 55. 3% 114 98 53. 7% 46. 2% df=1 chi-square=53. 892 p=0. 000 34 67 84 03 18. 0% 35. 6% 44. % 1. 5% 45 72 91 04 21. 2% 33. 9% 42. 9% 1. 8% df=3 chi-square=48. 241 p=0. 000 % Non Adopters No. % Chi square 2Page www. ijmit. com Council for Innovative Research www. cirworld. com Education Under graduate Graduate Post Graduate Any Other Monthly Income Under Rs. ten thousand Rs. 10000-Rs. 20000 Rs. 20000-Rs. 30000 More than Rs. 30000 Not Employed Daily usage of the Internet 1 hour and below 1-3 hours 3. 1-5 hours 5. 1-7 hours 7 hours and above 21 38 56 65 08 18 37 78 55 00 31 43 92 20 International daybook of Management & Information Technology Volume 1, No 1, May, 2012 6. 4% 22. 8% 48. 9% 10. 6% 56 62 86 08 26. 4% 29. 2% 40. 5% 3. 7% df=3 chi-square=72. 452 p=0. 000 9. 5% 19. 6% 41. 4% 29. 2% 0. 0% 42 51 69 45 05 19. 8% 24. 0% 32. 5% 21. 2% 2. 3% df=4 chi-square=67. 453 p=0. 000 11. 1% 20. 2% 29. 7% 34. 5% 4. 2% 47 53 71 39 02 22. 1% 25. 0% 33. 4% 18. 3% 0. 94% df=4 chi-square=77. 344 p=0. 000 Table 2 Most visited category of websites Category of Websites Retail Consumer Electronics Comparison Shopping figurer Hardware Apparel Movies Books Flowers/Gifts/Greetings Jewelry/Luxury Goods/Accessories Home itemsRank 1 2 3 4 5 6 7 8 9 10 Mean 3. 45 3. 12 2. 98 2. 87 2. 64 2. 55 2. 03 1. 76 1. 46 1. 55 Reasons for adoption or non-adoption of online shopping The factor digest was applied on the responses provid ed by respondents. Factor analysis is a good way of identifying latent or underlying factors from an roll of seemingly important variables. In a more general way, factor analysis is a set of techniques, which, by analyzing correlations between variables, reduces their number into fewer factors, which explain much of the original data, more economically. (Malhotra,2002).In the present study, the factor analysis was applied in order to identify the various reasons for online shopping by the consumers, the responses obtain were put to factor analysis and the result so obtain were Table 3 KMO and Bartletts test subject to Kaiser- Meyer- Olkin (KMO) invoice of sampling adequacy and Bartletts test of Sphericity. The approximate chi-square evaluate is 621. 103 with df 290, which is significant at 0. 000 level. (Table 3). The value of KMO statistics (0. 783) is also large ( 0. 5). Hence, all factors are not considered equally important for Television viewing.From table 4, it is evident that the first four variables represent the 62. 092 % of variance. Therefore, only these four factors with the variance greater than 1. 0 are retained and the other factors are not included in the model. Thus, from eigen values in table 3, we extract only 4 factors from the 13 variables. 3Page www. ijmit. com Council for Innovative Research www. cirworld. com International Journal of Management & Information Technology Volume 1, No 1, May, 2012 Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartletts Test of Sphericity Approx.Chi-Square Degree of Freedom Significance .783 621. 103 290 . 000 Table 4 heart and soul Variance explained Initial Eigenvalues circumstances 1 2 3 4 5 6 7 8 9 10 11 12 13 Total 4. 150 3. receipts 2. 718 1. 411 0. 892 0. 789 0. 618 0. 601 0. 590 0. 449 0. 332 0. 217 0. 189 % of Variance 27. 823 14. 230 10. 783 9. 256 6. 068 5. one hundred thirty 5. 003 4. 781 4. 350 4. 263 2. 963 2. 788 2. 562 Cumulative % 27. 823 42. 053 52. 836 62. 092 68. 160 73. 290 7 8. 293 83. 074 87. 424 91. 687 94. 650 97. 438 100. 00 Extraction Sums of Squared Loadings Total 4. 150 3. 144 2. 718 1. 411 % of Variance 27. 823 14. 230 10. 783 9. 56 Cumulative % 27. 823 42. 053 52. 836 62. 092 Rotation Sums of Squared Loadings Total 3. 921 3. hundred and one 2. 318 1. 290 % of Variance 27. 823 14. 230 10. 783 9. 256 Cumulative % 27. 823 42. 053 52. 836 62. 092 Extraction Method Principal Component synopsis Factor loadings are simple correlations between the variables and factors. The most commonly used method is the Varimax Table 5Rotated Component Matrix whirling procedure. This is an orthogonal method of rotation that minimizes the number of variables with high loadings of a factor, thereby enhancing the interpretability of the factors.Orthogonal rotations results in factors that are uncorrelated. Component S. No. Statements 1 2 3 4 1 2 3 4 5 I prefer to purchase online due to well-grounded deductive reasonings available online It is easier to buy online kind of than going on to shop at stack away Shopping online gives you bigger options to choose from It is easier to pay online through realisation board or direct bank wobble The quality of products purchased online from certain(p) sites is very good and are available at economical prices Shopping online saves my period and money as I dont have to go through heavy traffic besides saving fuel 609 . 361 . 212 . 341 . 425 . 380 .427 . 521 . 517 . 489 . 336 .379 . 389 . 412 . 656 . 316 .235 . 260 . 352 . 419 . 296 6 .552 .272 .461 4Page www. ijmit. com Council for Innovative Research www. cirworld. com 7 8 9 10 11 12 13 International Journal of Management & Information Technology Volume 1, No 1, May, 2012 . 402 . 642 . 285 . 403 . 502 . 325 . 580 . 326 . 561 . 223 . 326 . 346 . 436 . 352 . 561 . 452 . 311 . 262 . 663 . 516 . 431 . 613 . 497 . 591 . 570 . 371 . 696 . 280I am a bit concerned about the security and privacy of my payments online I cannot buy all the products on discou nt but some selected products only There are some ecstasy delays in getting the product I do not use the credit card so I cannot ofttimes shop online I prefer to purchase online due to easement of online buying procedures I physically need to check the products before purchasing it I can point the reviews also before purchasing online which helps me to select the right product at economical pricesPrincipal Component Analysis under the rotation method (Varimax with Kaiser Normalization), rotation converged in 15 iterations. The pastime four parcels (Table 6) may be extracted Component 1 Factor 1,5,8,13 (Price Consciousness) Component 2Factor 2,3,6 (Convenience and categorization) Component 3Factor 4,11 ( wakeful payment options) Component shopping) 4Factor 7,9,10,12 (Challenges of online The rotated component matrix suggests presence of the four interrelated factors.Table 6 Naming of Factors Factor No. F1 Name of Dimension Price Consciousness Item No. 1 I prefer to purchase onli ne due to heavy discounts available online Variables Factor loading . 609 5 8 13 F2 Convenience and Variety 2 3 6 F3 Easy payment options 4 11 F4 Challenges of online shopping 7 9 10 12 The quality of products purchased online from indisputable sites is very good and are available at economical prices I cannot buy all the products on discount but some selected products only.I can read the reviews also before purchasing online which helps me to select the right product at economical prices It is easier to buy online quite an than going on to shop at store Shopping online gives you big options to choose from Shopping online saves my time and money as I dont have to go through heavy traffic besides saving fuel It is easier to pay online through credit card or direct bank transfer I prefer to purchase online due to easement of online buying procedures. I am a bit concerned about the security and privacy of my payments online There are some shipping delays in getting the product.I do not use the credit card so I cannot often shop online I physically need to check the products before purchasing it .425 . 642 . 580 . 521 . 517 . 552 . 656 . 663 . 613 . 591 . 570 . 696 Price Consciousness It is the most significant factor with 27. 823 percent of arrive variance explained. This explains the intent of Punjab Consumers being price sensitive. Most of the consumers prefer to buy some selected products online because they will get heavy discounts in comparison to store purchases. also, the consumers feels that there are good websites available which can be trusted for purchases. Page www. ijmit. com Council for Innovative Research www. cirworld. com International Journal of Management & Information Technology Volume 1, No 1, May, 2012 Convenience and Variety It is the second most significant factor with 14. 230 percent of total variance explained. The consumers perceive that shopping online gives them larger options to choose from. Shopping online is very convenient as one has to yet open a laptop or PC to shop rather then getting ready and pass through shiver hour traffics. Easy Payment options It is the third most significant factor with 10. 83 percent of total variance explained. Consumers feel that carrying cash or credit cards all the way to the store is meaning less if one can purchase the same product from their home. Challenges of Online Shopping It is the one-quarter most significant factor with 9. 256 percent of total variance explained. The only worry of consumers is regarding the trustworthiness of some websites, since they have to give their credit card details to shop online. REFERENCES ? Bechrer C. (2004). Characteristics and internet marketing strategies of online auction sellers.International Journal of Internet market and Advertising. 24(1), 24-37 Bellman, S. , Lohse, G. and Johnson, E. (1999) Predictors of online buying behaviour, Communications of the ACM, 42 (12), 32-38. Bengtsson M. (2007). Integrating the Internet and M arketing Operations A Study of Antecedents in Firms of Different Size. International itty-bitty Business Journal. 25(1), 27-48 Chin ting S. (2010). The Effect of Internal Marketing on Organizational Commitment Job Involvement and Job Satisfaction as Mediators. Educational Administration Quarterly. 9(4), 65-74 Know, K. and Lee, J. (2003) Concerns about payment security of Internet purchases a perspective on current on-line shoppers, Clothing and Textiles Research Journal, 21 (4), 174-184. Leong C. (2001). Marketing practices and Internet marketing A study of hotels in Singapore. Journal of Vacation Marketing. 7(2), 179-187 Parsuraman A. (2002). Marketing to and Serving Customers through the Internet An Overview and Research Agenda. Journal of the Academy of Marketing Science. 30(4), 96-105 Ryan P. (2004).Internet marketing standards institutional coherence issues. International Journal of Internet Marketing and Advertising. 15(4), 84103 Schiffman L. (2007) Consumer Behavior , New De lhi Prentice Hall India Sigalla M. (2003). growth and Benchmarking Internet Marketing Strategies in the Hotel Sector in Greece. Journal of cordial reception & Tourism Research. 27(4), 375-401 Standing C. (1999). Internet marketing strategies used by travel agencies in Australia. Journal of Vacation Marketing. 6(1), 36-42 Wang Y. (2006).Futuring Internet Marketing Activities Using transmute Propensity Analysis. Journal of Travel Research. 45(2), 158-166 ? ? ? CONCLUSIONS It was seen from the study that most of the Respondents of the age group 36-45 years were found to be adopters of online shopping. Most of the Males were the adopters as compared to females, where 53. 7% were non-adopters. The adopters were mostly post graduates with monthly income in the range of Rs. 20000-Rs. 30000. The respondents those who use internet from 5 to 7 hours a day were found to be adopters of online shopping.Further, the factor analysis was applied to understand the various reasons for adoption and non-adoption of online shopping by the respondents. The following four factors were found to be significant Price Consciousness, Convenience and Variety, Easy Payment options and Challenges of Online Shopping. Most of the consumers prefer to buy some selected products online because they will get heavy discounts in comparison to store purchases. Also, the consumers feels that there are good websites available which can be trusted for purchases.The consumers perceive that shopping online gives them larger options to choose from. Shopping online is very convenient as one has to just open a laptop or PC to shop rather then getting ready and pass through rush hour traffics. Shopping online saves time and money along with lesser effort is ask in comparison to store purchases. Consumers feel that carrying cash or credit cards all the way to the store is meaning less if one can purchase the same product from their home. The educated consumers are aware of the buying procedures online whi ch they feel are pretty simple.The only worry of consumers is regarding the trustworthiness of some websites, since they have to give their credit card details to shop online. Many of the consumers are aware of the various online scams due to which they are very concerned and reluctant while providing their credit card information online. Also the online purchases take a longer time in shipments and deliveries. The psychology of an Indian consumer is still the same of checking the product physically before purchasing it, which creates a mental hurdle for online shopping. ? ? ? ? ? ? ? ? 6Page www. ijmit. com