CONSUMER BEHAVIOR TOWARDS ONLINE

SHOPPING-AN EMPIRICAL STUDY WITH

REFERENCE TO BHIWANI CITY, HARYANA
Priyanka Sharma
Research Scholar

ABSTRACT
The present paper is an attempt to study the consumer behavior towards online shopping. The objectives of the
study are: to identify the relationship of demographical factors that influence online shopping, to study the
preferences of the consumers toward online shopping and to study the satisfaction level of the consumers while
they shop online. To achieve the objective, null hypothesis ‘Online shopping is not reliable and trustworthy to
the consumers’ was tested. The present study has been conducted among the consumers of Bhiwani City.
Convenience sampling method has been used to select the sample. The primary data was collected from 100
respondents by means of a self constructed questionnaire having 15 questions. The collected data was analyzed
using Excel and SPSS software. The major findings of the study are: Cash on delivery is found most popular
payment method for online shopping among consumers. The price of the products has the most influencing
factor on online purchase and online shopping is getting popular in the younger generation. Majority of the
respondent’s buys from flipkart.com which is thus one of the leading online shopping websites in India. Online
shopping is very popular for electronics items followed by movie tickets and clothes. Unreliable online delivery
system as well as personal privacy or security concerns have a significant impact on online shopping. The main
barrier in the process of online shopping is the payment safety and privacy issue.

Keywords: Consumer behaviour, Online Shopping and Cash on Delivery.

I. INTRODUCTION

With the rapid global growth in electronic commerce (e-commerce), businesses are attempting to gain a
competitive advantage by using e-commerce to interact with customers (Demangeot and Broderick,
2007).Online shopping is a form of electronic commerce which allows consumers to directly buy goods or
services from a seller over the Internet using a web browser. Michael Aldrich is the man who invented online
shopping in 1979. Growing numbers of consumers shop online to purchase goods and services, gather product
information or even browse for enjoyment. Online shopping environments are therefore playing an increasing
role in the overall relationship between marketers and their consumers (Koo, Kim and Lee 2008). With the
increasing internet literacy, the prospect of online marketing is increasing in India. Alternative names of online
shopping are: e-web-store, e-shop, e-store, Internet shop, web-shop, web-store, online store, online storefront
and virtual store. As the Internet has now become a truly global phenomenon, the number of Internet users
worldwide is expected to reach 1.8 billion by 2010 according to the survey of Click Z Stats, cited in Kotler &
Armstrong (2008). These growing and diverse Internet populations mean that people having diverse tastes and

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purposes are now going to the web for information and to buy products and services. Thus, the impact of these
online shopping environments on consumer behaviour necessitates a critical understanding for marketing
planning.The present paper is an attempt to study the consumer‟s behaviour towards online shopping.

II. LITERATURE REVIEW

(Mahalaxmi and Nagamanikandan, 2016) studied that the internet has given rise to great potential for businesses
through connecting globally. In case online purchasing stills more problems arising specially for apparel. Every
consumer has faced number of difficulties. Based on finding it is concluded that online shopping is getting
popular in the younger generation. The main barrier in the process of online shopping is the safety issue and low
level of trust on online stores therefore; sellers have to make proper strategies to increase the consumer‟s level
of trust on them.
(Shanthi and Kannaiah, 2015) studied that mostly the youngsters are attached to the online shopping and hence
the elder people don‟t use online shopping much as compared to the younger ones. The study highlights the fact
that the youngsters between the ages of 20-25 are mostly poised to use the online shopping. It is also found that
the majority of the people who shop online buys books online as it is cheaper compared to the market price with
various discounts and offers. The study also reveals that the price of the products have the most influencing
factor on online purchase.
(Bhatt, 2014) found in his study that Online shopping is gaining popularity among people specially the younger
generation but in today scenario to become equally popular among all age groups e-marketing will have to cover
a longer distance. The result of our study shows that mode of payment is depended upon income of the
respondents. People having monthly income below Rs 1, 00,000 prefer cash on delivery and above Rs 3, 00,000
prefers Internet banking payments. People from different age groups are doing online shopping regularly.
(Chandra and Sinha, 2013), studied that, now days the new and latest type of retail shopping are online
shopping. It has now been adopted all over the world including India. In many other countries this shopping
method is still not as well known or accepted, and though the knowledge of online shopping in India is now
beginning to increase rapidly. To analyze factors affecting on online shopping behavior of consumers that might
be one of the most important issues of e-commerce and marketing field, this is the main objective of the study. It
is a complicated socio-technical phenomenon and involves too many factors so that there is very limited
knowledge about online consumer behavior.
According to(Kapoor ,2012), online decision making and online shopping phenomena are governed by a
number of consumer acceptance and behavior characteristics and grounded in theoretical aspects of consumer
decision making. There are number of factors that affect what we buy, when we buy, and why we buy. In
reference to buying online, the factors that influence consumers are marketing efforts, socio-cultural influences,
psychological factors, personal questions, post decision behavior, and experience.
(Jun and Jaafar, 2011), business revolution is a good example which is provided by online shopping.
Ecommerce is experiencing a period of rapid development currently in China; for the expansion of the online
shopping market, large number of Internet users provides a good foundation. After studying and analyzing
different variables this research found that there were relationships between the perceived usability, perceived

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security, and perceived privacy, perceived after-sales service, perceived marketing mix, perceived reputation
and consumers‟ attitude to adopting online shopping in China. However, only marketing mix and reputation
were significantly influence consumers‟ attitude to adopt online shopping. After studying this journal we able to
understand consumers‟ online purchase behaviour.
Ramirez Nicolas (2010) state that "The Internet has changed many facets of our daily lives: the way we relate
and communicate with one another, how we interact with a bank, read newspapers or watch television. Even the
way we buy and sell. These changes have occurred due to the constant flow of companies offering new business
models and innovative formulae. Discount coupons have always been a powerful marketing tool. Whether
inserted in printed media or posted through letter boxes, they attracted new customers and were also offered at
the time of purchase to promote consumer loyalty by encouraging repeat purchases at outlets.
Sharma and Mittal (2009) in their study "Prospects of e-commerce in India”, mentions that India is showing
tremendous growth in the Ecommerce. Undoubtedly, with the population of millions of people, online shopping
shows unlimited potential in India... Today E-commerce is a common word in Indian society and it has become
an integral part of our daily life. There are websites providing a number of goods and services. Then there are
those, which provide a specific product along with its allied services. Multi-product ecommerce-These Indian E-
commerce portals provide goods and services in a variety of categories. To name a few: Apparel and accessories
for men and women, Health and beauty products, Books and magazines, Computers and peripherals, Vehicles,
Software, Consumer electronics, Household appliances, Jewelry, Audio/video, entertainment, goods, Gift
articles, Real estate and services.
The earlier studies revealed that certain attributes making impact on intention to purchase through online. But
there is no research to consider those factors with the focus of specific demographical characteristics,
preferences and perception. Thus, the present study tries to understand the consumer‟s behavior towards online
shopping with reference to their demographic characteristics, preferences and perception.

III. STATEMENT OF THE PROBLEM

An empirical study of the consumer behavior towards online shopping.

Objectives

1. To identify the relationship of demographical factors that influence online shopping

2. To study the preferences of the consumers toward online shopping.
3. To study the satisfaction level of the consumers while they shop online.
Hypothesis
Null Hypothesis (HO)
Online shopping is not reliable and trustworthy to the consumers.
Alternative Hypothesis (Ha)
Online shopping is reliable and trustworthy to the consumers.

IV. RESEARCH METHODOLOGY

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The present study has been conducted among the consumers of Bhiwani City. The study is explorative as well as
descriptive in nature. Convenience sampling method has been used to select the sample. This study will be
helpful in exploring the consumer‟s behavior towards online shopping. For the purpose of the given study
primary as well as secondary data has been used. The Secondary data has been collected from various books,
journals, published research papers etc. The primary data was collected by means of a self constructed
questionnaire. Copies of the questionnaire were given personally to respondents. The questionnaire contained a
total of 15 items. The respondents were selected conveniently and 100 respondents were personally meet to give
their responses. The collected data was analyzed using Excel and SPSS software.

V. DATA ANALYSIS AND RESULTS

1. Demographic factors and Online Shopping
Online shopping in terms of demography is an important aspect. We would like to study demography in terms of
age, income and education as are there any differences while consumers shop Online.

Table-1
Consumer Income and Payment Method

Payment Method
Debit Card/ Cash on
Credit Card Net Banking Delivery Total
Consumer Below Rs.150000 0 0 14 14
Income Between Rs.150000-250000 0 6 15 21
(Per Annum) Between Rs. 250000-450000 7 13 16 36
Above Rs.450000 14 12 3 29
Total 21 31 48 100

It is clearly indicated in table-1 that out of the 100 people surveyed, 48% people uses cash on delivery, 31%
people uses debit card or net banking and only 21% people uses credit card method to purchase the products
online. The people having annual income below Rs 2,50,000 prefer cash on delivery and above Rs 2, 50,000
prefers Internet banking payments. Cash on delivery is found most popular and credit card payment method is
found least popular for online shopping among consumers.

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 Table-2 Consumer Income and Amount Spent for online shopping

Amount Spent by Consumer (per month)

Between Between
Below 1500 1500-3000 3000-5000 Above 5000 Total
Below Rs.150000 13 1 0 0 14
Consumer Income Between Rs.150000-250000 8 13 0 0 21
(Per Annum) Between Rs. 250000-450000 0 25 11 0 36
Above Rs.450000 0 2 9 18 29
Total 21 41 20 18 100
As per given data in table-2, 21% people spends below 1500, 41% people spends between 1500-3000, 20%
people spends between 3000-5000 and 18% people spends above 5000 to purchase the products online. Most of
the people spends between 1500-3000 per month for online shopping. The most of the people having annual
income below Rs 4,50,000 spends between 1500-3000 per month for online shopping. People having annual
income above Rs 4,50,000 spends above 3000 per month for online shopping. It concludes that amount spent by
consumer depends on the annual income of the consumer.

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 Table-3 Consumer Age and Product features
Product Features
Brand Quality Price Variety Total
Consumer Age Below 15 Years 19 8 7 0 34
Between 15 and 25 Years 6 24 11 0 41
Between 25 and 45 Years 0 0 13 3 16
Above 45 Years 0 0 7 2 9
Total 25 32 38 5 100

Table-3 indicates that, 25% people prefer brand of the product, 32% people prefer quality, 38% people prefer

price and 5% people prefer variety of the product during online shopping. Table also indicates that consumers

below 15 years of age prefers brand of the product, consumers between 15-25 years of age prefers quality of the

product and consumers above 25 years of age prefers price of the product during online shopping. Above

discussion concludes that It infers that price is the number one preference followed by quality during online

shopping.

Table-4Consumer Education Level and Company Reputation of the Product

Company Reputation of the Product
Very Unimportan Neutra Importan Very
Unimportant t l t Important Total
XII 6 2 2 0 0 10
Consumer UG 4 6 10 29 0 49
Education Level PG 0 0 0 15 26 41
Total 10 8 12 44 26 100

Table-4 indicates that out of the 100 people surveyed, 10% said that reputation of the company of the product is
very unimportant, 8% said unimportant, 12% were neutral, 44% said important and 26% said very important

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during online shopping. Table also indicates that reputation of the company of the product is unimportant for the
consumers having education as XII and reputation of the company of the product is important or very important
for graduate and post graduate consumers. This discussion concludes that more educated consumers prefer
reputation of the company of product.

VI. CONSUMER PREFERENCES AND ONLINE SHOPPING

In terms of product categories, consumer interest on Google search for apparels & accessories emerged as the
second biggest product category after consumer electronics. When we purchase a service or product through
internet with an electronics media, it is called “Online Shopping”. Online Retail Business websites are like
Makemytrip.com, Bookmyshow.com and Yatra.com.
Table-5
Websites used to buy products

Frequency Percent Cumulative Percent

Snapdeal 14 14.0 14.0
Myntra 16 16.0 30.0
Yepme 6 6.0 36.0
Ebay 16 16.0 52.0
Homeshop 15 15.0 67.0
Flipkarts 25 25.0 92.0
others 8 8.0 100.0
Total 100 100.0

Table-5 indicates that out of the 100 people surveyed 14% said that they use snapdeal.com, 16% use
myntra.com., 6% use yepme.com, 16% use ebay.com, 15% use homeshop.com., 25% use flipkart.com and 8%
use other sites to purchase the products online. The maximum number of websites accessed online is
Flipcart.com followed by Myntra, Ebay, Homeshop and Snapdeal.
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 Table-6 Products bought online
Frequency Percent Cumulative Percent
Electronics 30 30.0 30.0
Clothes 17 17.0 47.0
Books 12 12.0 59.0
Furniture 5 5.0 64.0
Cosmetics 10 10.0 74.0
Movie Tickets 26 26.0 100.0
Total 100 100.0

Table-6 indicates that out of the 100 people surveyed the total number of various products purchased by them
online, 30% purchased are electronics items, 17% purchased are clothes, 12% purchased are books, 5%
purchased are furniture, 10% purchased are cosmetics and 26% purchased are movie tickets. The results
indicates that online shopping is very popular for electronics items followed by movie tickets and clothes.

VII. SATISFACTION LEVEL OF CONSUMERS AND ONLINE SHOPPING

Shopping online has never been so easy. With the flourishing numbers of online merchants, people nowadays
have various choices to do their shopping. All they have to do are just browse for the product they want in the
website and within a few mouse clicks they are off. Such simplicity is what makes online shopping appealing
for consumers. The question is, why do many people still deny shopping online? Well, for most people, privacy
and security issues are their concerns.

VIII. TESTING HYPOTHESIS

In order to test the null hypothesis (HO) that „Online shopping is not reliable and trustworthy to the consumers‟
and alternative hypothesis (Ha) that ‘Online shopping is reliable and trustworthy to the consumers‟ the results of
t-test are as follows.

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 Table-7

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
1.Product Delivery 100 3.55 1.175 .118
2.Product Information 100 2.36 1.235 .124
3.Payment Security 100 3.87 1.107 .111
4.Return Policy 100 3.42 1.265 .126
5.Consumer Privacy 100 3.60 1.110 .111

Table-8

One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
t df Sig. (2-tailed) Mean Difference Lower Upper
1.Product Delivery 4.680 99 .000 .550 .32 .78
2.Product Information -5.181 99 .000 -.640 -.89 -.39
3.Payment Safety 7.859 99 .000 .870 .65 1.09
4.Return Policy 3.321 99 .001 .420 .17 .67
5.Consumer Privacy 5.405 99 .000 .600 .38 .82

From Table-8, it can be said that the significant value of all variables is less than 0.05. As the hypothesis was
derived from these variables and their significant value are less than 0.05, thus null hypothesis (HO) is rejected
and alternative hypothesis (Ha) is accepted. So for hypothesis, it can be conclude that unreliable online delivery
system as well as personal privacy or security concerns have a significant impact on online shopping. The main
barrier in the process of online shopping is the safety and privacy issue.

IX. CONCLUSION

Online shopping is rapidly changing the way people do business all over the world. In the business-to-consumer
segment, sales through the web have been increasing dramatically over the last few years. Customers, not only
those from well developed countries but also those from developing countries, are getting used to the new
shopping channel. The internet has given rise to great potential for businesses through connecting globally. The
people having annual income below Rs 2,50,000 prefer cash on delivery and above Rs 2, 50,000 prefers Internet
banking payments. Cash on delivery is found most popular payment method for online shopping among
consumers. The result of our study shows that mode of payment is depended upon income of the respondents.
The most of the people having annual income below Rs 4,50,000 spends between 1500-3000 per month for
online shopping. People having annual income above Rs 4,50,000 spends above 3000 per month for online
shopping. Consumers below 15 years of age prefers brand of the product, consumers between 15-25 years of age
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prefers quality of the product and consumers above 25 years of age prefers price of the product during online
shopping. The price of the products has the most influencing factor on online purchase and online shopping is
getting popular in the younger generation. Reputation of the company of the product is unimportant for the
consumers having education as XII and reputation of the company of the product is important or very important
for graduate and post graduate consumers. Majority of the respondent‟s buys from flipkart.com which is thus
one of the leading online shopping websites in India. Online shopping is very popular for electronics items
followed by movie tickets and clothes. Every consumer has faced number of difficulties. Unreliable online
delivery system as well as personal privacy or security concerns have a significant impact on online shopping.
The main barrier in the process of online shopping is the payment safety and privacy issue. This increases low
level of trust on online stores therefore; sellers have to make proper strategies to increase the consumer‟s level
of trust on them.

REFERENCES

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Marketing Management, 2(2), pp 29-56.
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Consumer Research,13, pp 14-20.
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