E-Commerce in India: A Comparative study of online shopping. with Store Shopping

Transcription

1 E-Commerce in India: A Comparative study of online shopping with Store Shopping Pritish Jain Amity university, Up, India Abstract INTRODUCTION: In this business era we can see a significant degree of dynamism. Due to constant development in technology there is significant growth in competitive advantage. Shopping at the click of a mouse is gaining popularity. RESEARCH OBJECTIVE: The study tries to recognize that, how consumer measure channels for their purchasing. Specifically, it progresses a conceptual model that addresses consumer value perception for using the internet shopping versus the traditional shopping. Earlier study showed that perceptions of price, product quality, service quality and threat strongly impact perceived value and purchase intents in the offline and online network. Observations of online and offline buyers can be evaluated to see how value is constructed in both channels. It is hitherto to recognize what factors influence online and offline shopping choice progression. The objective of this study is to provide an impression of online shopping decision process by comparing the offline and online decision making and identifying the factors that motivate customers to decide whether to do online shopping or go for the offline shopping. Consumer s shop when and where they want, where they are comfortable with the products and the choice of shopping. RESEARCH METHODOLOGY: The primary data is collected by distributing Questionnaires to 250 respondents and almost all of them have experienced online shopping once.data is collected from the students, working Professionals and Business Class people. Questionnaires include response on various factors like, Time saving, Cost saving, large variety of products, 24x 7 Shopping facility, Attractive gifts and discounts attracts customers towards online shopping but there are other factors like delay in delivery process, Lack of sufficient information about the product and lack of privacy which proves to be hurdle in online shopping. FINDINGS AND CONCLUSION: The study finds that female are more into online shopping than male. Since last two years as population are more aware of the technology the online shopping increased immensely. Keywords: E-Commerce, online shopping, instore shopping, dynamism, technology advancements Page 132

2 RESEARCH OBJECTIVE To study the impact of online shopping on in-store shopping. To study the role of technology in facilitating online shopping. To study the level of customer acceptance. To study the role of social media in promoting e-commerce. To study the extent to which the demographics affect e-commerce. RESEARCH METHODOLOGY The researcher for the purpose here had made use of primary data and secondary data. The researcher has made use of close ended questionnaire where sample of 306 was used. The data was collected and was analyzed by using SPSS Software. Secondary sources were also used with respect to Review of Literature, Journals and articles. Descriptive Statistics was done by using Mean, Standard Deviation, Frequency and inferential statistics was used like correlation, regression and ANOVA. Page 133

3 INTRODUCTION E-commerce refers to the transactions of buying and selling, or transmitting of funds or data over internet. These business transactions occur either as business-to-business, consumer-to-consumer, business-to-consumer, or consumer-to-business. History of e-commerce E-commerce came into existence in 1991, when internet was made available for commercial purposes. Since then more than 1000 s of companies are using internet for operating business. Initially, e-commerce meant the process of executing commercial transactions electronically with the help of Electronic Data Interchange (EDI) and Electronic Fund Transfer (EFT) which helped companies to share business information and conduct electronic transactions. In 1994, the internet began to popularize among the general public. In 2000, a significant number of business companies in the United States and Western Europe started using e-commerce to operate business. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet. The "brick and mortar" retailers were able to identify the advantages of electronic commerce and began to use e-commerce in operating business. Ecommerce has advantages over "brick and mortar" stores and mail order catalogs. Consumers can easily search through a large database of products and services. They can see actual prices, build an order over several days and it as a "wish list". Benefits of E-commerce Around-the-clock availability The speed of access The variety of goods and services for the consumer Accessible Global reach Reduced cost enhanced customer relations Page 134

4 The e-commerce market continues to grow: Online sales accounted for more than a third of total U.S. retail sales growth in 2015, according to data from the U.S. Commerce Department. Web sales totaled $341.7 billion in 2015, a 14.6% increase over E-commerce conducted using mobile devices and social media is on the rise as well: Internet Retailer reported that mobile accounted for 30% of all U.S. e-commerce activities in And according to Invesp, 5% of all online spending was via social commerce in 2015, with Facebook, Pinterest and Twitter providing the most referrals. TYPES OF E-COMMERCE Waghmare G.T. (2012) has defined the following types of e-commerce: (i) B2B E-Commerce: Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. (ii) B2C E-Commerce: Businesses selling to the general public typically through catalogs utilizing shopping cart software. Eg. indiatimes.com. (iii) C2C E-Commerce: There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. ebay's auction service is a great example of where customer-to customer transactions take place every day. (iv) Others: G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government). Online Shopping Benefits of online shopping: Reviews: Online shopping allows customers to view people s review before buying the best product for themselves. Home delivery: Online shopping removed the limit on the amount that the person can buy. Page 135

5 Convenience: Customers can shop at anytime, from anywhere with internet accessibility. Mass reach: Going online ensures serving a wider audience, as online shopping is a borderless platform. Cut costs: Online shopping helps in reducing costs, as there is no need of physical assets. Competitive prices: Online shopping helps the customer to buy from a variety of products at competitive prices, as customers can compare prices. Content creation: Online shopping helps the marketers to provide required information about the product to the customers over the internet. Disadvantages: Fraud and security concerns Privacy Chances of hidden cost In-store Shopping It is the traditional way of buying goods and services from company stores. It is a type of commerce which allows customers to buy products and services by going to a physical store. It allows the customer to touch and feel the product or service before buying the same. Returning/exchanging items: It is comparatively easier for customers to return or exchange the purchased goods. Visual displays: Companies can encourage customers to enter their store by various means of visual displays such as posters, artifacts etc. Interaction: In store shopping allows customer to interact with salesperson and seek their advice. A chance to be creative: Companies can let their imagination and creativity to design store in a manner to attract more and more customers. Online shopping v/s In-store shopping Online shopping allows all types of consumers to buy any type of item or product, regardless of where its location is in any part of the world. It allows customers to shop in the comfort of their homes. Traditional shopping allows the customer to physically check and try the merchandise that the customer wants. Page 136

6 Online shopping enables the customer to shop 24*7 whereas In-store shopping bound the customer to shop only during the working hours. Online shopping allows the customer to compare prices of a particular product whereas In-store shopping does not allow such comparisons. There are chances of frauds and security concerns while shopping online whereas there are no such concerns during In-store shopping. Online shopping doesn t allow the customer to physically examine the product whereas In-store shopping provides such facilities. There are chances of hidden costs in Online shopping whereas there are no such hidden costs in Instore shopping. REVIEW OF LITERATURE 1.Dr. Parul Deshwal (2015), E-commerce in India: creating bricks behind clicks Through this paper, the author wants to explain the concept of e-commerce and wants to examine various threats and opportunities available in India. Through research it is seen that e-commerce is the next step of shopping, it is easy and help in getting a competitive edge over other competitors. 2.Ampuda, Aboagye and Dzaka (2015), Re-defining the future of commerce: mobile commerce and emgergence of sixth sense technology Through this paper, the authors want to examine the effects of mobile phones on online shopping. The results show that mobile phones will make the business more informative, interesting, and accessible. 3.Gagandeep Kaur (2016), Mobile applications are major players in world of e-commerce In this paper, the author wants to examine the uses of mobile applications in the fields of e-commerce. Through the research conducted it is seen that mobile phones play a vital role in e-commerce and mobile apps are becoming an integral part of daily lives. 4.Dr. Vijetha Mukkeli (2015), Growth and challenges of e-tailing in India Through this paper, the author examines the rate at which e-commerce is growing in India and the challenges it might have to face. Through the study it is stated that e-commerce is growing at very high pace and it might have some challenges that need to be overcome. 5.Paul A. Pavlou (2003), Consumer acceptance of e-commerce Through this paper, the author wants to examine the level of acceptance among customers towards e- commerce. Through the survey, it is seen that customers are ready to accept e-commerce only if the companies are able to reduce or eliminate the perceived risk. 6.Dr. Rita Sachdev (2015), Role of e-commerce in Indian Economy Through this paper, the author studies the role that e-commerce plays in the Indian Economy. The research shows that e-commerce plays a.n important role in the Indian Economy but still the future of e-commerce in India is unpredictable. Page 137

7 7.Sarbapriya Ray (2011), Emerging trends of e-commerce in India Through this paper, the author examines the growth of e-commerce, evaluates the benefits of e- commerce towards economy, and critically analyzes the barriers and constraints that are creating problems for e-commerce to grow and flourish in India. Through research it is seen that with the constant advancements in internet, there are opportunities for e-commerce to grow and reach every part of the country. 8.Kareem, Owomoyela, Oyebamiji (2014), Electronic commerce and Business performance Through this paper, the authors want to determine the impact of e-commerce on business performance. Through the research, it is seen that e-commerce have a significant role on business performance as it lowers the costs, it effects the service operations and also increases the level of revenues. 9.Dr. Parul Deshwal (2015), E-marketing: Challenges and opportunities for the marketers Through this research, the author wants to observe the e-marketing environment, analyze the advantages and disadvantages of e-marketing, analyze the future of e-commerce and study its growth. Through the research it is seen that the future belongs to e-marketing but is not limited to it. Though e-commerce is advantageous in several manner but it also have some disadvantages which cannot be neglected at any cost. 10. Dr. Sugandha Agarwal (2015), E-commerce in India: on an upswing Through this paper, the author wants to analyze the state of growth in India and its contribution towards parallel economies and industries. Through the research, it is seen that e-commerce is still able to grow and expand at a very high growth rate. And it is also predicted that e-commerce will be able to grow more because of the large number of buyers in India 11. Dr. Rita Khatri (2016), E-marketing: The paradigm shift for Indian retailers Through this paper, the author wants understand the prospects of e-marketing in India and wants to analyze the challenges to e-marketing in India. Through the studies conducted it is seen that e-marketing led the foreign companies to enter Indian markets and also providing them opportunities to access Indian customers. Technology is only challenge that every firm is facing because there are constant developments in technology. 12. Gaurav, Arpan and Varun (2014), Evaluating e-commerce from the perspective of end users Through this paper, the author wants to understand the dynamics of the major factors that consumers look into any of these e-tailers and to identify the major factors that facilitate the customer to shop online. As per the survey conducted, customers consider reliability, tangibility, responsiveness more important than assurance and empathy to measure quality of service. 13. Dr Desti Kannaiah, Dr R. Shanthi (2015), The Impact of Augmented Reality on E- commerce In this paper, the author wants to study the growth and impact of e- trading in Indian metros and study the behavior of customers towards technology. As per the results it is seen that consumers are accepting e-commerce as means of shopping. Page 138

8 14. Dr. M. Jyothsna Dr. M. Sudha (2015), Young consumer s online shopping preferences with special focus on family income. Through this paper, the author wants to study the impact of demographic factors on online shopping in India. It is seen that demographic factors play an important role in influencing shopping preferences. 15. Abdel and Eddy (2009), E-government and its e-commerce in LDCs Through this paper, the author wants to study the impact of electronic governance on electronic trading development and opportunities. Through the studies conducted, it can be seen that e- commerce is widely impacted by e-government as there are constant changes in policies. 16. Anchal and Monika (2016), Comparative analysis of e-commerce websites Through this paper, the author wants to determine the factors that influence the customers to select a website to shop from. Through the results, it is established that customers consider product assurance, pricing and return policies as the major factors influencing selection. 17. Sanjay and Manika(2011), Exploring impact of consumer and product characteristics on adoption of e-commerce Through this paper, the authors want to study the impact of consumer and product characteristics to adopt e-commerce. Through the results it is seen that consumer and product characteristics play an important role in adopting e-commerce. 18. Nicholas and Jerry (2003), Electronic commerce customer relationship management: A research agenda Through this paper, the author wants to examine the relationship between e-commerce and e-crm. Through the studies it is seen that there is a significant relation between e-commerce and e-crm. 19. Sadiq M. Sait (2005), Factors influencing the adoption of e-commerce Through this paper, the author wants to determine the factors that influence the adoption of e- commerce. The research shows that infrastructure, traditions, and cultural values play an important role in influencing the economy to adopt e-commerce. 20. Rashed and Azizul (2013), Impact analysis of wireless and mobile technology on business management strategies Through this paper, the authors want to examine whether there a relationship exist between wireless and mobile technology. The results show that technology influences the business practices and management. DATA ANALYSIS FINDING OUT THE RESPONSE RATE Page 139

9 RESPONSES FREQUENCY PERCENTAGE Returned complete Questionnaires Returned incomplete 14 4 Unreturned This table shows the No. of questionnaires and their validity received for analysis. RELIABILITY Cronbach's Alpha N of Items Table 1.1 The table 1.1 above shows the degree of the questionnaire s reliability. The value of alpha is which is more than 0.6. This shows that the data is reliable for further analysis. FINDING OUT DESCRIPTIVE STATISTICS FREQUENCIES Items Frequency Percentage Gender Age Group Male Female Below 25 years years years Above 55 years Page 140

10 Educational Qualification Certificate Diploma Graduate Masters Doctorate Uneducated Occupation Income Retired Student Homemaker Govt. employee Pvt. Employee Businessmen Below 5lakh 5 lakhs-7lakhs 7lakhs-10lakhs Above 10lakhs Table The table 1.2 shows the frequency distribution of the respondents in various demographics namely, Gender, Age group, Educational Qualification, Occupation and income. The above table divides the total of 306 respondents in different demographics. The data helps in determining the number of respondents in each sub-divisions of a Demographic factor. USING CROSS TABS TO SUPPORT HYPOTHESIS Valid Online In-store Frequency 0 22 Percent Both Page 141

11 Table 1.3 Table 1.3 shows the preference of people towards shopping platforms. The results show that none of the individual prefers to shop only on online platform. Most them choose to shop using both platforms. It also signifies that though online platforms have created a parallel economy but are still not able to overtake traditional means of shopping. The results also show that there are people who only shop on traditional platforms. Frequency Percent Valid Yes No Table 1.4 Table 1.4 shows the frequency of respondents who opted for the answer Yes and No respectively for the question asked to know is there any reduction in frequency of traditional shopping over online shopping. The results show that 98% of the respondents think that they have reduced their frequency of traditional shopping. Frequency Percent Valid Yes No Table 1.5 Table 1.5 shows the frequency of people who think online shopping safe or unsafe. The results shows that almost 85% of the respondents consider online shopping safe but there is a significant number of respondents who still fell unsafe while shopping online. USING MEAN AND STANDARD DEVIATION Do you consider online shopping safe? N Mean Std. Deviation Page 142

12 Time spend on online shopping provide you satisfaction? Did you face Technical problems during the ordering or payment? Did you ever feel there was lack of information on the seller, the guarantee and consumer rights while shopping online? Do you consider it safe to provide your bank details during online shopping time spend on online shopping provide you variety of products? has online shopping made your life easier? Do you think satisfaction level was more higher in traditional shopping than online shopping? Do you think traditional shopping is beneficial to health because it make people to go outside in fresh air Can you rely on the quality of products of traditional shopping Do you they money was saved more in traditional shopping Page 143

13 there was more variety of products in tradition shops than online traditional shopping provide true value for money Valid N (list wise) 306 Table 2 Table 2 shows the mean and standard deviation of the parameters selected. As we can see the mean in this table lies between 1 and 3, it shows that the respondents have a positive approach i.e. they opted to agree towards the parameters. Standard deviation shows the degree at which the mean is deviating from the actual mean. Hypothesis-1 H0: There is a significant relation between preferences and various demographics. H1: There is no relation between preferences and various demographics. Cross tabulation Where do you prefer shopping? In-store Both Gender Male Female This table shows the relation of Gender with preferences. Page 144

14 Age Group Where do you prefer shopping? This table shows relation between Age groups and Preference. Income (yr) Where do you prefer shopping? This table shows relation between preference and Level of income. USING CORRELATION AND REGRESSION ANALYSIS Correlations Gender Where do you prefer shopping? Education Level Income (yr) Age Group Gender Pearson Correlation ** * Where do you prefer shopping? Sig. (2-tailed) N Pearson Correlation ** ** Sig. (2-tailed) N Page 145

15 Education Level Pearson Correlation ** **.238 ** Sig. (2-tailed) N Income (yr) Pearson Correlation *.186 **.599 ** ** Sig. (2-tailed) N Age Group Pearson Correlation **.238 **.443 ** 1 Sig. (2-tailed) N Table 2.1 Table 2.1 shows the correlation between preference and all different demographics. It shows a negative USING ANOVA TO PROVE HYPOTHESIS Opinion on online shopping [Do you consider online shopping safe?] Opinion on online shopping [Time spend on online shopping provide you satisfaction?] Opinion on online shopping [Did you face Technical problems during the ordering or payment?] ANOVA Sum of Squares Opinion on online Between Groups shopping [Did you ever Within Groups relation between age and preference. There is a positive relation between preference and Education, Income and Gender. df Mean Square F Sig. Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Page 146

16 feel there was lack of information on the seller, the guarantee and consumer rights while shopping online?] Opinion on online shopping [Do you consider it safe to provide your bank details during online shopping] opinion on traditional shopping [Do you think satisfaction level was more higher in traditional shopping than online shopping?] opinion on traditional shopping [Can you rely on the quality of products of traditional shopping] opinion on traditional shopping [Do you they money was saved more in traditional shopping] Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups opinion on traditional Between Groups shopping [there was more Within Groups variety of products in tradition shops than online] This table shows the significant relation between Preferences and gender. ANOVA Opinion on online shopping [Do you Sum of Squares Df Mean Square F Sig. Between Groups Within Groups Page 147

17 consider online shopping safe?] Opinion on online shopping [Time spend on online shopping provide you satisfaction?] Opinion on online shopping [Did you face Technical problems during the ordering or payment?] Opinion on online shopping [Did you ever feel there was lack of information on the seller, the guarantee and consumer rights while shopping online?] Opinion on online shopping [Do you consider it safe to provide your bank details during online shopping] Opinion on online shopping [time spend on online shopping provide you variety of products?] Opinion on online shopping [Is online shopping made your life easier?] opinion on traditional shopping [Do you think satisfaction level was more higher in traditional shopping than online shopping?] Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups opinion on traditional Between Groups Page 148

18 shopping [Do you think traditional shopping is beneficial to health because it make people to go outside in fresh air] opinion on traditional shopping [Can you rely on the quality of products of traditional shopping] opinion on traditional shopping [Do you they money was saved more in traditional shopping] opinion on traditional shopping [there was more variety of products in tradition shops than online] Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups opinion on traditional Between Groups shopping [traditional Within Groups shopping provide true value for money] This table shows a significant relation between age groups and preferences. when you buy in a traditional shop? [salesman advice] ANOVA Sum of Squares Df Mean Square F Sig. Between Groups Within Groups Between Groups Within Groups Page 149

19 when you buy in a traditional shop? [products presentation] when you buy in a traditional shop? [Price] when you buy in a traditional shop? [Quality] when you buy in a traditional shop? [Choice] when you buy in a traditional shop? [payment facility] when you buy in a traditional shop? [loyalty systems : cards, points] when you buy in a 1? [salesman advice] when you buy in a 1? [products presentation] when you buy in a 1? [Price] Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Page 150

20 when you buy in a 1? [Quality] when you buy in a 1? [Choice] when you buy in a 1? [payment facility] when you buy in a 1? [loyalty systems : cards, points] Within Groups Between Groups Within Groups Between Groups Within Groups Between Groups Within Groups This table shows a significant level of relation between preferences and educational level. THE TEST SHOWS THAT WE LL REJECT H1 AND ACCEPT H0. CONCLUSIONS & FINDINGS The research shows the following results: - There is a significant relation between demographics and consumer preferences. The future of e-commerce is unpredictable. E-commerce industry though created a parallel economy is not able to overtake the offline trading industry. It is seen that the use of e-commerce platform is high between the youth and people who are in service industry. The concept of online trading is popular among the working women. People still hesitate to share their personal details on online sites as they don t feel safe by doing so. People are still not able to rely wholly on online shopping. After the research conducted, I would like to conclude that there is still a long way to go for e-commerce in India. Companies should ensure safety and security of data provided by customers. The e-commerce Page 151

21 industry is growing at a rapid pace but is still not able to overtake traditional shopping. People still face technical problems while shopping online. BIBLIOGRAPHY 1. Dr. Parul Deshwal (2015), E-commerce in India: creating bricks behind clicks 2. Ampuda, Aboagye and Dzaka (2015), Re-defining the future of commerce: mobile commerce and emgergence of sixth sense technology, SINGAPOREAN JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT STUDIES 3. Gagandeep Kaur (2016), Mobile applications are major players in world of e-commerce, International Journal of Advanced Research in IT and Engineering 4. Dr. Vijetha Mukkeli (2015), Growth and challenges of e-tailing in India, International Journal of Advanced Research in Management and Social Sciences 5. Paul A. Pavlou (2003), Consumer acceptance of e-commerce, International Journal of Electronic Commerce 6. Dr. Rita Sachdev (2015), Role of e-commerce in Indian Economy, International Human Research Journal 7. Sarbapriya Ray (2011), Emerging trends of e-commerce in India, Computer Engineering and Intelligent Systems 8. Kareem, Owomoyela, Oyebamiji (2014), Electronic commerce and Business performance, International Journal of Academic Research in Business and Social Sciences 9. Dr. Parul Deshwal (2015), E-marketing: Challenges and opportunities for the marketers, International Journal of scientific research and management (IJSRM) 10. Dr. Sugandha Agarwal (2015), E-commerce in India: on an upswing, IJRSI 11. Dr. Rita Khatri (2016), E-marketing: The paradigm shift for Indian retailers, INTERNATIONAL JOURNAL OF MULTIFACETED AND MULTILINGUAL STUDIES 12. Gaurav, Arpan and Varun (2014), Evaluating e-commerce from the perspective of end users, 13. Dr Desti Kannaiah, Dr R. Shanthi (2015), The Impact of Augmented Reality on E- commerce, Journal of Marketing and Consumer Research 14. Dr. M. Jyothsna Dr. M. Sudha (2015), Young consumer s online shopping preferences with special focus on family income, International Journal of Business and Administration Research 15. Abdel and Eddy (2009), E-government and its e-commerce in LDCs 16. Anchal and Monika (2016), Comparative analysis of e-commerce websites, International Journal of Exclusive Global Research 17. Sanjay and Manika(2011), Exploring impact of consumer and product characteristics on adoption of e-commerce, Journal of Technology Management for Growing Economies Page 152

22 18. Nicholas and Jerry (2003), Electronic commerce customer relationship management: A research agenda, Information Technology and Management 19. Sadiq M. Sait (2005), Factors influencing the adoption of e-commerce 20. Rashed and Azizul (2013), Impact analysis of wireless and mobile technology on business management strategies, Information and Knowledge Management Page 153