Changing Trends In Online Shopping and Its Effects on Indian Consumer Behaviour
Understanding the Shift in Indian Consumer Behavior towards Online Shopping
by Mrs. Deepika Sharma*, Miss. Swarnika Harne,
- Published in International Journal of Information Technology and Management, E-ISSN: 2249-4510
Volume 10, Issue No. 15, May 2016, Pages 0 - 0 (0)
Published by: Ignited Minds Journals
ABSTRACT
The purpose of this paperis to present a detailed analysis of the changing trends in online shopping andits necessary effects on Indian consumer behavior. Online shopping has become newtype of retail shopping. It has now been adopted all over the world includingIndia. This shopping method is still not as well known or accepted asin many other countries, and though the knowledge of online shopping in Indiais now beginning to increase rapidly, and hence there is a need to find out thechanging perspective of Indian consumers on e-commerce. The main objective ofthis study is to analyze factors affecting on online shopping behavior ofconsumers that might be one of the most important issues of e-commerce andmarketing field. E-commerce has been around in India for more than a decade buthas become main stream only in the last few years. Ecommerce was low instarting years due to initial inhibitions, but it is growing now withextraordinary pace as the confidence of Indian buyers is increasing day by day.By analyzing the current behavior of Indian buyers, experts estimated that thetrend of e-shopping will become basic phenomena among buyers in coming years. This study is done toanalyze the changing trends in online shopping of Indian consumer’s behavior.In the beginning stages of online shopping consumers were reluctant to acceptthis new system. But today the market is able to overcome many of thelimitations and build confidence among the consumers to buy online. This papershows lights on development of online shopping or e-commerce and its effectsand acceptance by Indian buyers. The last two years have seen considerableincrease in online trade in Indian market.
KEYWORD
online shopping, changing trends, Indian consumer behavior, e-commerce, retail shopping, factors affecting online shopping behavior, marketing field, Indian buyers, e-shopping, limitations
INTRODUCTION
Internet is playing a major role in removing business limitations of past. Today a sales representative of a company can directly reach to a client’s doorstep and offer the most satisfying services in a click. Though internet marketing in India is low as compared to the western countries, it is growing at a fast pace. There is a huge online market in India as computer and internet is becoming an inevitable part of our life. The technology is developing day by day as it removes the misconceptions and limitations of the technology in the past. Advanced technologies and web applications with safe transaction assurance are giving enough reasons to the new age Indian buyers to shop online. The best thing about the e-business is that it never phase-out and it demands half of the amount which a retail business does. If the web promotion and up gradation of website are at place, it means you are there to survive in the business for many more years. Online shopping has become a growing trend in the retail world today, particularly in developed nations. Statistics show that the amount of shoppers purchasing online are rising and the quantity of their purchases is also increasing rapidly. Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order tostay ahead in highly competitive markets. Companies also use the Internet to convey, communicate and disseminate information, to sell the product, to take feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities they will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business
2
In his study concluded that the consumer’s willingness to and preference for adopting the Internet as his or her shopping medium was also positively related to income, household size, and innovativeness. 2. Agrawal, Mohan Sandhir, Vidushi Gupta, Gaurav (2010) Online shopping is most common these days in the developed world especially in the USA. Though rapidly rising, online shopping in the developing countries particularly in India is yet to become strong and diversified. The theme hasn't been researched strongly either. Towards researching the emerging profile and identifying differences between the American and Indian online shoppers, this study reports a survey and several other empirical tests. The study reveals a huge potential for converting Indian in-store consumers into online buyers. This study should facilitate retailers and brands in expanding their presence and impact though online portals.
3. Grewal Et Al (2002)
Online shopping is more efficient in meeting the consumers’ needs and wants. It allows the consumers to easily attain knowledge about the brand’s product quality, availability, product specifications and prices, and compare that with those of another brand. This means they can now make more intelligent purchasing decisions in a way which is not possible through traditional shopping (Brown et al., 2003). Moreover, they can purchase anonymously which is convenient when it comes to personal products that they may feel uncomfortable buying in stores.
4. Solomon, 1998
In his study “Consumer behaviour is the study of the processes involved when an individual selects, purchases, uses or disposes of products, services, ideas, or experiences to satisfy needs and desires”. In view for the Internet to spread out as a retail channel, it is imperative to realize the consumer’s mind-set, intention and conduct in light of the online buying practice: i.e., why they employ or falter to use it for purchasing? Consumer attitudes seem to have a significant influence on this decision.
5. Schiffman, Scherman, & Long, 2003
In this study researched that “yet individual attitudes do not, by themselves, influence one’s intention and/or behavior. Instead that intention or behavior is a result of a variety of attitudes that the consumer has about a variety of issues relevant to the situation at hand, in this case online buying. Over time the Internet buyer, once considered the innovator or early adopter, has changed. While once young, professional males with channels.
Research Gap
Various researches have been conducted research related to Online Shopping; which deal with online shopping as a developing study. However, no such researcher has tried to put forward the changing trends in online shopping and its effects on Indian consumer behavior.
OBJECTIVE
The objective of the research is to discover answers to unsolved questions by applying descriptive procedure. In other words, the main aim of this research is to find out truth which has not yet been discovered. The specific objectives of this research are:
- To identify key factors influencing online shopping purchase behavior.
- To identify the factors that can explain the differences in online buying behavior among different online buyers.
- To put forward the view that online shopping is a new era of business.
- To study the awareness of online shopping among Indian customers.
- To analyze the factors and importance of online purchasing which promotes consumers for online shopping.
- To know the future prospects of online shopping.
The objective of this study is to synthesize the representative existing literature on consumer online shopping attitudes and behavior based on literature review. The current literature on consumer online purchasing decisions has mainly concentrated on identifying the factors which affect the willingness of consumers to engage in Internet shopping.
RESEARCH METHODOLGY
This study is based on Secondary source of data for studying the effects of changing trends in online shopping on Indian consumer’s behavior. The main source of data are collected from various published journals, newspapers, articles, publications of professionals, external sources, websites etc.
Mrs. Deepika Sharma1 Miss. Swarnika Harne2
study has been conducted to analyze the changing trends in online shopping and the preferences of the consumers in online shopping and the changes happening in this sector over the past few years.
IMPORTANCE OF ONLINE SHOPPING
Ling, said that customers can take enjoy online shopping for 24 hour per day. Consumers can purchase any goods and services anytime at everywhere. Online shopping is user friendly compare to in store shopping because consumers can just complete his requirements just with a click of mouse without leaving their home. Online shopping has some advantages like: 1. Save the Time of The consumers. 2. They can purchase any time anywhere 3. The can compare the price with the others retailers very easily. 4. Compare the advertising price and actual price 5. They can easily track their product 6. They can use cash back policy 7. They can purchase the product from the foreign marketers.
THE FACTORS WHICH AFFECT ONLINE SHOPPING
There are some factors which affect the online shopping by the customers. Such as: 1. Convenience (no traffic, crowds, 24 hr. access) 2. Product Selection 3. Delivery Mode
FINDINGS OF THE STUDY
This study is conducted to find the changing trends in online shopping and effects it have on Indian customers. This analysis was done through secondary data acquired through different journals, websites etc.
- People prefer a lot of options while shopping online and the respondents prefer to shop online because of the ability to shop around for
- Along with product quality as the important criteria for online shopping the customers prefer easy navigation facility followed by price and product availability.
- While shopping online the customer behavior is affected by that online retailer who has a better return policy and the ability to compare the products in the website that is the online site should be user friendly.
- Changing trends in online shopping is affected by the services provided by the online retailers. Majority of the customersgo for that online website which provide best customer service and facilities.
- Online shopping or E-commerce being one of the fastest growing areas in India has an impact on the economy. The study found that the changing trend in online shopping in India has a positive impact on the behavior of the Indian customers.
- It is also found that there is considerable improvement in the online shopping trend among the customers.
SUGGESTIONS AND RECOMMENDATIONS
Based on the findings of the study the following suggestions are given by the researcher to overcome the problems associated with online shopping changing trends and its considerable effects on the consumers. Online shopping organizations can apply the relevant variables and factors, identified from the research, to create their strategies and tactics. The organizations can prioritize the consumer inherent and unequivocal requirements in online shopping environment. The results can also be used by various organizations to identify their target customer segments.
CONCLUSION
It is clear that most of the consumer’s behavior is affected by the purchase of the product from online. In the present environment the people have not so much time that they will visit in the stores and purchase the product. Online shop plays a greater role for those types of consumers who have no time and want to avoid the crowd. But still there are some points who affect the consumer’s behavior about online shopping but overall in the next 5 to 10 years the online shopping would give a huge competition to the retailers. Because online consumers are rapidly increasing and if consumers increase than online
4
shopping. Internet has given rise to great potential for businesses through connecting globally. Shopping online has become the number one area with growing internet use. However, there is surely room for further research into the environment and experience of online shopping. Currently there is inadequate research based on ways to be successful in the business of online retailing. Therefore, in the future there is potential for further studies looking into methodology for online retail businesses. Researchers should also look into how this continuous growth of internet will affect consumers in the future generations and whether offline shopping will still remain relevant in the next few decades.
REFRENCES
Bellmen, S. Lohse, G.L. & Johnson, E.J. (1999). “Predictors of online buying behavior”, Communication of the ACM, Vol. 42, No. 12, pp. 32-38. Bettman, J.R. (1979), “An information Processing Theory of Consumer Choice, Reading, Mass.” Addison-Wesley. Childers, T.L. Carr, C.L. Peck, J. & Carson, S. (2001), “Hedonic and utilitarian motivations for online retail shopping behaviour”, Journal of Retailing, Vol. No. 77(4), pp. 511-535. The state of E-Commerce: Online shopping trends by James Maguire. http://www.emeraldinsight.com/doi/abs/10.1108/095905503 10457818 http://ecommerceinsiders.com/key-factors-influencingonline-consumer-behaviour-backed-research-1981/ http://www.magscholar.com/joomla/images/docs/ajbr/ajbrv1n2/Determinants%20of%20Internet%20Buying%20Behavior %20in%20India.pdf http://timesofindia.indiatimes.com/defaultinterstitial.cms http://www.ijsrp.org/research-paper-0613/ijsrp-p1853.pdf