Consumer behavior in online shopping

Geet Sanganeria
Student, Atlas SkillTech University

ABSTRACT

Online transactions are growing quickly and the Internet has evolved into a new distribution channel. This has
made it necessary to comprehend how consumers see internet transactions.
The most noticeable business model in electronic commerce is business to consumer. Direct sales to customers
are made possible by businesses thanks to online buying. There is an urgent need to comprehend the aspects
that impact customer behavior towards continuous use of online transactions in order to effectively persuade
consumers to adopt electronic commerce and online transactions.

Numerous services are now possible because to the Internet's popularity. Businesses have sought to reduce their
financial costs through Internet marketing and online financial transactions as a result of rising pricing levels
and material costs over time. By doing so, they can reduce their costs associated with renting space, setting up a
facility, and hiring staff. They can also reduce their advertising expenses as a result, which will increase the
number of potential customers. Internet marketing and online transactions have therefore developed into a
market niche for which each company competes (Amit,2013).

This study makes an effort to pinpoint the information-oriented buying habits of internet users in a setting of
electronic commerce. The abundance of information made available online changes how buyers decide what to
buy. Customers certainly have a tendency to conduct internet searches before making any purchases, according
to the results of the focus group discussions with consumers. The paradigm provides a two-phased approach to
finding and evaluating information. According to the suggested model, online shoppers prefer to pay closer
attention to various marketing mix components at each phase. The majority of online buyers assess the goods in
the first phase before comparing pricing in the second. While choosing a sales channel is on hold, traditional
and electronic options are still being compared in retail sectors.

In the market, men's online purchasing preferences are diversifying and are no longer primarily limited to 3C
items. Male skincare and cosmetics represent an untapped industry with significant development potential. The
goal of this study is to determine whether or not there are gender disparities in how women and men view the
value of and are satisfied with online purchases of cosmetics (Jain, 2014).

According to information economics literature, customers may now readily locate and compare product and
purchasing information online thanks to the availability of effective search engines that are available free of
charge. However, in this study, we provide a research model that contends that users must expend time and
effort in order to complete search tasks, which results in a high search cost and a trade-off between search cost
and performance. Search job difficulty, search engine functionality, search strategy, and user experience are
significant factors affecting search cost and performance, according to preliminary findings from an Internet
experiment.
There were also significant differences in the level of importance assigned to “brand reputation”, “fresh scent”,
“natural ingredients”, “reasonable price”, “suitable skin type”, “professionalism of service personnel”,
“recommended by advertising” and “ease of use”.

Keywords-Online shopping, e-marketing, e-store, customer satisfaction

INTRODUCTION

Online shopping is a type of e-commerce that enables customers to make direct purchases from sellers over the
Internet. The terms "e-shop" and "e-store," as well as "Internet shop" and "web-store," are also used. It is known
as business-to-consumer online shopping when a customer purchases goods and services from an online store in
a manner that is physically similar to the in-store experience. The activity of people choosing to purchase a
product online is known as online shopping.

The internet has developed into a new means of distribution for many goods. Online shopping has become one
of the most popular uses for the internet, along with researching items and learning more about them. As a
result, the internet has produced a fiercely competitive economy where clients are in high demand (Demangoet,
2001).

With infinite chances for everyone, online shopping has emerged as a new phenomenon. India comes in last in
the rankings for internet shopping after the US and Japan.

Online shopping is the component of e-commerce that is expanding the fastest, and in the ten years since it first
became a medium, the internet has expanded dramatically. Customers commonly have access to the internet
both at work and at home, making internet connectivity a normal occurrence. Online retailers are typically
accessible 24/7. Online shopping is changing, and it is becoming increasingly popular all around the world.

Online buying is becoming increasingly feasible in India. Given that some choices have a big influence on how
people behave and take predicted behaviors, consumer behavior is handled as an applied field. E-customers may
create new marketing tactics to turn potential consumers into active customers if they are knowledgeable about
the variables that affect online behavior and the linkages between these variables. The two main viewpoints that
seek to increase awareness of it are the social and micro views. The way people purchase on the internet has
evolved, and the trend is now widespread worldwide .In order to compete in extremely competitive
marketplaces, many businesses began adopting online shopping with the intention of lowering marketing
expenses, which would then force them to lower the price of their products. Businesses use the Internet to
connect, deliver, and distribute information as well
(Bashir, 2002).

Customers use the internet for a number of purposes, including making purchases as well as comparing product
specifications, prices, warranties, and delivery alternatives. About the future of the internet marketing sector,
many industry analysts are upbeat. Aside from the potential of the E-fantastic market, businesses have a unique
chance to engage both present and new clients more efficiently thanks to the Internet.

Even if business-to-business trade accounts for the most majority of internet trading's earnings, people that
participate in business-to-consumer trade shouldn't give up. The knowledge of customer behavior is a challenge
that ecommerce practitioners and researchers routinely face. Academics continue to utilize a range of
hypotheses to explain how consumers act online as e-retailing expands (Rungsrisawat, 2019).

Many studies make assumptions that are based on traditional models of consumer behavior, and then they
investigate the efficacy of e-marketing.

Online buying has become a new phenomenon with endless opportunities for everyone. The United States and
Japan are ahead of India in online shopping rankings.

The fastest-growing area of e-commerce is online shopping, and in the 10 years since it was first used as a
medium, the internet has grown significantly. Internet connectivity is common among customers, who
frequently have access to it both at work and at home. Online stores are frequently available around-the-clock.
The way people purchase and buy on the internet is evolving, and the practice has fast taken off globally
(Bashir, 2002).

Online shopping site users behave differently than shoppers who shop in actual stores, where they can
physically view the things. These sites are quickly taking the place of traditional stores. Customers' faith in
internet retailers has grown significantly over the years. One way in which the proliferation of these websites
has benefited consumers is through the intense rivalry it has sparked, which has resulted in better and more
affordable goods.

When it comes to internet buying, users are concerned about their privacy. The internet is quickly becoming a
worldwide phenomenon and is altering the way customers shop and purchase products and services (Hasslinger,
2015).

The most particular aspects impacting client attitudes towards online purchasing include technology-oriented
elements like assured quality, cash on delivery savings, and promotions. The goal of this research paper is to
examine customer attitudes regarding online buying as well as the many aspects that affect the trend of this type
of purchasing (Astuti, 2010).

Literature Review
According to Dr. Amit Kumar Singh due to the busy lives and hectic schedules of the majority of people in the
21st century, online shopping has taken on a significant role in society. Online shopping became the simplest
and most practical option for them in this situation. Internet shopping has changed, and it has quickly become a
global phenomenon. A business-to-consumer online shop is one that stimulates the physical similarity of
purchasing goods and services from an online store (Amit, 2013).

As per Anupam Sharma online shopping is a type of electronic commerce that enables customers to directly
purchase products or services from a seller over the Internet using a web browser. A good illustration of a
business revolution is online shopping. Ecommerce has simplified and innovated people's lives. Online
shopping site users have different buying habits than those who shop in physical stores, where they can
physically see the products (Anupam , 2017).
According to Somdech Rungsrisawat , the paper indicates that a number of important variables affect
consumers' online purchasing decisions .The benefits that consumers believe e-commerce websites offer and
psychological elements like truth have an impact on their online purchasing decisions. According to the
regression model, there is a positive correlation between these factors and online purchasing behavior, so the
more significant they are, the more prevalent it will be (Rungsrisawat, 2019).

Ms. Dipti Jain suggests online shopping is more common than ever in the age of the internet's widespread use.
The internet has streamlined, accelerated, accelerated, and made transactions easier for both buyers and sellers.
Knowing the factors influencing consumer purchasing behavior can help retailers create their marketing
strategies to turn their potential customers into active ones. The increasing use of the internet in India has
created a basis for tremendous opportunities for online retailers (Jain, 2014).

As per Rini Astuti, studying and analyzing the impact of financial literacy on millennials' appetite for online
purchasing is the goal of this study. In this study, associative support is being applied. Each participant in this
study was a student at Muhammadiyah University in North Sumatra's Faculty of Economics and Business.
Techniques for documentation-based data collecting were used in this investigation. Regression testing and the
Validity and Reliability Test were both employed in this study's data analysis procedures.(Astuti,2010).

Marios Bashir advises that the online customer be considered as both a shopper and a computer user. In an
integrated theoretical framework of online customer behavior, we analyze ideas from information systems
(Technology Acceptance Model), marketing (Customer Behavior), and psychology (Flow and Environmental
Psychology). In this article, we concentrate on how emotional and cognitive responses to a first-time Web store
visit may impact online buyers' tendency to return and likeliness to make impulsive purchases. The equipment
exhibits generally acceptable measuring properties, and the constructs are verified as a nomological network.
(Bashir, 2015).

As per Marie-Odile Bashir, Jean-Charles Chebat, Zhiyong Yang , Sanjay Putrevu in this study, we investigated
how consumer online behavior is influenced by web experience and web ambiance. These antecedent factors
drove website participation and website exploration, which in turn drove site attitudes and pre-purchase
assessments, according to a model of web navigation behavior that was established. On a pharmaceutical
website, these connections were examined and verified (Bashir,2013).

E-commerce has been in India for more than ten years, but only in the last few years has it really taken off. You
might think of e-commerce as an activity where the client uses the ordering goods or services on the internet. In
most cases, the transaction may also be completed online. The usage of the internet is heavily demanded by
online commerce. People are becoming more and more comfortable making internet purchases. Venture capital
funds have invested hundreds of millions of dollars in this industry. Indian consumers are demonstrating their
trust in online e-commerce (Vaidya,2019).

According to ANTHONY D. DEMANGEOT AND ANA FERNANDEZ ,Many people working in online retail
believe that the passage of time will allay consumers' worries about the security and privacy of online
buying.Others assert that growing Internet usage and general awareness of the possible hazards associated with
online buying will boost risk perceptions. There hasn't been any study to date that examines if having more
Internet experience is associated with having more or less perceived dangers and worries about the privacy and
security of online buying. Thus, the findings of a study that examines the connections between degrees of
Internet experience, views of risk, and rates of online shopping are reported here (Demangeot,2007).

In line with Andrew T. Hasslinger This essay assesses recently made available consumer data in the context of
digital and social media marketing. It has been determined that there are five main themes: I use digital culture;
ii responses to digital advertising; iii effects of digital environments on consumer behavior; iv environments on
mobile devices; and v online word-of-mouth (WOM). These articles together provide light on the issue of how
consumers engage with, shape, and are shaped by the digital environments in which they find themselves in
their everyday lives from a range of viewpoints (Hasslinger, 2015).

Research Question

● What primary elements influence an online shopper while they are deciding whether to buy something
or not?

● How do these elements affect the consumer's decision to buy books online?

● What categories of customers can be discovered among those who have been identified while buying
books online?

● What link exists between the identified variables and the various customer segment groups?

Research Objective

● The research of customer perception and behavior regarding internet buying is the primary topic of the
current article.
● to determine customer attitudes about internet shopping
● to determine customer purchasing patterns on the internet
● To determine customer preference for several websites
● To determine how consumers perceive different payment methods.

Research Methodology
In this study, we'll look for the key variables that affect online shoppers' decisions to buy things. We started by
conducting preliminary study in order to deepen our expertise on the topic.

The inductive technique and the deductive method are the two most often utilized research methodologies.
Deductive research seeks to discover the theory first and then test it against observable evidence, whereas
inductive research seeks to establish a theory utilizing data that has been gathered. Since we would be moving
from the more general to the specific in our study, we decided to use a deductive research technique. Writings
on e-commerce and consumer behavior. We looked at research with comparable objectives and focused
especially on their findings.

In order to better understand consumer behavior in general and online consumer behavior in particular, this
study began as an exploratory study but evolved into an explanatory study. Now that we are aware of this, we
can continue to pinpoint particular elements that are crucial for online shoppers. To discover connections and
correlations between these variables, this knowledge is then put to use (Hasslinger,2015).

Analysis and Discussion

E-commerce is a relatively new idea. It is currently largely relying on an internet and mobile phone revolution
to profoundly change the way businesses connect with their consumers. Along with more conventional goods
like books and audiovisuals, the expansion is anticipated to be driven by rising consumer-led spending on
durable goods like gadgets, fashion, and accessories. The largest event of the century has been the development
and spread of the internet. From a shaky beginning in 1999–2000 to a time where one may sell and find all
kinds of goods online, e-commerce in India has gone a long way.

The majority of businesses use the internet to sell their services and product offerings so that they may be
reached by a wider audience and the worldwide market. Through online purchasing, computers and the internet
have totally altered how people do daily business (Hasslinger,2015).

Over the years, the internet retail market in India has grown steadily and quickly. Due to the country's
tremendous ecommerce growth, it is expected that the Indian online retail sector would increase by almost 4
times to reach $14.5 billion in 2018. Statista.com reports that there were 1.12 billion online shoppers worldwide
in 2014, and that figure rose to 1.32 billion in 2016. India has 408.4 million online users in 2015. In 2021, this
figure is anticipated to increase to 635.8 million. India is now the second-largest internet market in the world,
despite its unrealized potential. India is one of the world's e-commerce markets with one of the quickest rates of
growth.
“Consumer behavior can be described as the study of individuals, groups, or organizations and the processes
they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society”. (Kuester, 2012; p. 110)

Online shopping now has a new dimension thanks to social media. Online purchases have increased in
popularity among internet users, particularly young people. This shift in consumer purchasing behavior,
particularly among young people, will be examined in this research project. The following five parameters will
be used to analyze the changes in consumer purchasing behavior among Pakistani University of Punjab
students:
1. Trust
2. Convenience
3. Time
4. Product Variety
5. Privacy
Factors affecting Consumer behavior

Trust
The key element in preserving trust as ecommerce is developed is customer connections (Kim & Tadisina,
2007). Online businesses must guarantee that they would never utilize the private information of their customers
for any other reasons in order to allay consumer concerns about safe transactions.

The client will benefit from having greater identification security. Online retailers can even create custom
integrated systems to secure the privacy of their customers' personal information, prevent the misuse of such
information, and prevent credit card payments (Prasad &Aryasri, 2009). Consumers' lack of confidence in
online providers is one of the key obstacles preventing online shopping (Gefen, Karahanna, & Straub, 2003).

Time
Perceived time demands are among the main problems that individuals are coping with. According to Settle and
Alreck (1991), this is the extent to which a person feels they don't have enough time to do their regular
responsibilities. Both environmental and personal pressures may be the source of the perceived pressure. The
most frequently mentioned cause is situational, and it is also extremely simple to recognise. People frequently
discover that they have too much work on their hands, too many tasks that need to be done, and not enough time
to really do them. Such persons who feel under time pressure might and do blame their plight on obligations
related to job requirements, family obligations, and other connections.

Variety of Goods
Online purchasing is constantly growing in the US, and it has a growing impact on overall retail sales as well,
therefore a deeper investigation of spending habits per individual is necessary. Customers must be happy with
the goods and services they have already purchased before they will purchase additional items online. It is
crucial that researchers create and then evaluate metrics that can accurately and completely capture the thoughts
and attitudes of consumers who purchase online in order to understand what they desire from a website.(Watson
& Straub, 2001).
Convenience
The term "convenience" was coined by Copeland in 1923, and since then, convenience items have been defined
as those that consumers purchase most frequently and are readily available in stores on demand. In order to
provide clients convenience, Seiderset al. (2000) identified four potential for retailing:
a) Access: Ability of customer to reach the retailer
b) Search: Ability to identify and select products that they want
c) Possession: Ability to obtain the product of desire
d) Transaction: Ability to amend or effect transactions

Despite the fact that convenience is one of the key factors encouraging people to shop online (Ahmad, 2002;
Jayawardhena et al., 2007), earlier studies either treated convenience as a predictor variable that affects outcome
variables like customer service for customer satisfaction (Colwell et al., 2008; Seiders et al., 2007), or as one of
the facts regarding service quality online, like accuracy (Hu et al., 2009; Kim & Park, 2012;

Privacy
Privacy concerns have a significant impact on the consumer's trust in online retailers, claim Pan and Zinkhan
(2006). In fact, several researchers claim that the primary obstacle to the growth of online purchasing is the
concern for privacy (Hoffman et al., 1999; Hou & Rego, 2002). There is less danger of information sharing the
more security and privacy are provided to the client while purchasing online. The greater the beneficial impact
on customer confidence, the better the shopping experience will be.

Data Analysis
 ● Out of the 113 respondents, 43.4% were in the 25–30 age range, 31.9% were in the 20–25 age range,
15% were above 35, and 9.7% were in the 30-35 age range.
● In all, 62.2% of replies were from women, and 37.8% from men.
● The percentage of persons who used to make purchases from e-commerce websites is depicted in the pie
chart.
● In answer to the survey, 37.8% of respondents said they met someone through advertising, 27.8%
through friends, and 27.9% through social media.
● A total of 27.9% of respondents use Google Pay as their payment mechanism, followed by 22.5% who
use Phone Pe, 27% who use debit/credit cards, and 19.8% who use Paytm.
● What are the most important aspects that influence people's decisions when they shop online and make a
final purchase? Because the items are not accessible in local stores, 32.4% of respondents use the online
platform; 30.6% claim it is convenient and time-saving; 18% buy because the prices are better than in
local stores; and 12.6% prefer online shopping because all the product reviews are available.(Ramayah
and Ignatius' 2010)

Conclusion

It has been demonstrated that consumer experience has a substantial impact on interest in online
purchasing.This finding is consistent with research by Weisberg et al. (2011) and Mohmed et al. (2013), which
found that the shopping experience has a fantastic and significant influence on interest in shopping.

After using the goods, consumers' persuasive conversations have an impact on how much they will like buying
it. Consumer pleasure presupposes that people ingest various goods in exchange for the sensations, feelings,
pictures, and emotions elicited by utilizing a particular product of their choosing. As a result, consumers are
more likely to enjoy their purchases and be eager to make future purchases if they are satisfied with the
purchases they make and the transactions they complete.

According to Ramayah and Ignatius' (2010) Study on Online Shopping Interest Based on Consumer Trust and
Shopping Experience, consumers who are interested in shopping online but find it difficult to complete the
transaction online are more likely to lose interest. According to Davis (1993), a consumer's perception of an
online vendor is influenced by how easy the transaction was for them. The customer may choose traditional
buying if using the site proves to be more challenging than the advantages of online purchasing. In order to
attract customers, it is important to provide a positive online shopping experience. The product will be
repurchased by customers, who will develop a stronger bond with the product supplier.
Online shoppers were shown to have higher attitude scores, and this higher attitude score was found to be
closely associated with those consumers' decisions to make purchases online. The market segment that scored
better on attitude should be the target market.
All of the cOnSumer demographic factors were correlated with the perspective on online purchasing. Males had
much higher mean attitude scores than females, which is significant. The greatest attitude scores were among
consumers between the ages of 36 and 40.

This indicates that e-buying will become more and more commonplace as more individuals recommend it to
one another. As a result, word-of-mouth advertising is essential for merchants. Domain-specific innovation has
a favorable impact on online buying behavior. This indicates that in order to improve the success of their
marketing campaigns, marketing experts need to focus on this society while developing their marketing
strategies.
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