Consumer Behavior Towards E-Retailing & its Characteristics

Project Guide: Dr. Naresh Patel

Submitted by: 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 stores 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 Analysis
Rotated Component Matrix Component 1 It saves your time it takes more time to search specific product It gives me ease of shopping at home It does not require travelling to far off distance Speed of internet affects your online shopping It takes a long time to deliver products Shopping 24x7 Ease to make payment assistance Lack of physical evidence affects my purchase decision I think that online shopping results in monetary benefits can customize the products according to my specification get better discounts & offers on internet The actual products do no match the products shown on Wide choices of brands to choose I do not get much variety in products 0.256 0.365 0.423 0.235 0.162 0.094 0.832 0.767 0.783 0.852 0.826 0.858 0.788 0.849 0.286 2 0.772 0.704 0.804 0.725 0.188 0.123 0.276 0.353 0.413 0.298 0.22 0.209 0.332 0.247 0.22 3 0.054 0.178 0.136 0.42 0.782 0.847 -0.038 0.138 0.03 0.128 0.273 0.034 0.182 0.189 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:
Gender Analysis
Chi-Square Tests Value df Asymp. Sig. (2sided) Exact Sig. (2-sided) Exact Sig. (1-sided)

Pearson Chi-Square Continuity Correctionb

.069a .014

1 1

.792 .907

Likelihood Ratio
Fisher's Exact Test

.069

.793
.884 .453

Linear-by-Linear Association

.069

.793

N of Valid Cases

217

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

Chi-Square Tests Value df Asymp. Sig. (2-sided)

Pearson Chi-Square Likelihood Ratio

2.021a 1.922

3 3

.568 .589

Linear-by-Linear Association

1.891

.169

N of Valid Cases

217

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.

Education level Analysis

Chi-Square Tests Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square Likelihood Ratio

3.537a 3.330

3 3

.316 .343

Linear-by-Linear Association

2.433

.119

N of Valid Cases

217

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.

Income Analysis
Chi-Square Tests Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square Likelihood Ratio

.001a .001

2 2

.999 .999

Linear-by-Linear Association

.000

.997

N of Valid Cases

217

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
Gender Analysis
18%

Age Analysis

Female
31%
42% 58%

18-25 years 26-30 years 31-35 years

Male 23%

36 & above

28%

Level of Education
Graduate Intermediate
45% 53% 20%

Income Analysis
> 15000
21%

Matriculation Post Graduate

1500025000 25000 or Above

59%

1% 1%

Frequency Of Shopping
Frequently (once a month)
32% 39%

Time Initiation of Shopping

1-3 years
30%

Once in a year Once in six month

31%

Less than 1 year More than 3 years

29%

39%

Things which Customers Prefer to shop the most

8% 20%

22%

22% 28%

Books

Clothes & Accessories

Mobiles & Electronics

Footwears

Music & Softwares

Most Shopped Online Sites

Flipkart
25% 28%

Payment Mode Analysis

Cash on Delivery Debit/Credit card Netbanking

Snapdeal Myntra

8%

13% 20%

41% 14%

51%

Homeshop18 Others

Reasons For Shopping

5% 10%

Things Which E-Retailers must Improve

After Service
14%

Saves Time

Saves Money
23%

Much Easier Shopping More Efficient Friend Referrals Others

21%

Website Security
8%

30% 26%

Delivery on Time Packing of Products

57%

6%

Features valued by Customers

Do they Continue to Shop Online?

5%
Yes No

95%

Barriers in Online Shopping

Bad Customer Service

High Shipping Cost

Warranty Claims

Refund Policy

Long Delivery time

Low Trustworthiness

Product Non performance as shown

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 doesnt 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