A STUDY ON CONSUMER AWARENESS AND DETERMINANTS OF ONLINE SHOPPING Dr. R. Kavitha* 1. TamilNadu, India.

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1 ISSN: IJMRR/Aug 15/ Volume 5/Issue /Article -6/636-6 Dr. R. Kavitha et. al., / International Journal of Management Research & Review A STUDY ON CONSUMER AWARENESS AND DETERMINANTS OF ONLINE SHOPPING Dr. R. Kavitha* 1 1 Assoc. Prof, Sakthi Institute of Information and Management Studies, Pollachi, Coimbatore, ABSTRACT TamilNadu, India. With the rapid development of network technology, electronic commerce and electronic marketing had been formed and developed gradually, thereby forming new business model and business chance which exerted an important influence on the country's economic future competitiveness. On-line shopping is a recent phenomenon in the field of E-Business and is definitely going to be the future of shopping in the world. Most of the companies are running their on-line portals to sell their products/services on-line. The facility of Online purchasing has allowed customers to identify the different types of products available in the global market, Due to rapid globalization, all types of products are available on the internet.goods and services, consumer durables, books, audio and video cassettes and services like and air tickets can also be purchased online. The paper aims to study about the consumer awareness and factors affecting on online shopping. The present research study has used Qualitative and Quantitative research methods to study the impact of Demographic factors of consumers on on-line shopping, respondents behavior, awareness about the rules and regulations of online shopping and benefits and services of online shopping.. The data were collected through Questionnaires. Simple percentage analyses have been used in the analysis. Results of the study reveal that on-line shopping in India is significantly affected by various Demographic factors like age, gender, marital status, family size and income. Keywords: On line shopping, Demographic factor, Age, Gender, occupation, Income. 1. INTRODUCTION In this era of fast moving lifestyle, customers are busier than what they were few years back. It is precisely for this reason customers are also purchasing their products and services through online shopping. Marketplace is fast turning into e-marketplace. From needle to ship, everything is being sold and bought on the internet. With new and new players coming in, it is but natural for the existing players as well as new entrants to come up with innovative techniques to sell their goods and services. Traditionally, there has been a feeling of thrill associated with getting good discounts. There is a sense of achievement attached with cracking a great deal. It is this sense that e-entrepreneurs have successfully targeted upon through deal sites like snapdeal, flipkart, shopclues, etc. Today, both urban and rural areas enjoy internet facilities in this genre of technological up-gradation. The consumer buying behavior has changed to a great extent. Companies are *Corresponding Author 636

2 also well aware of these facts and that s why they are also giving greater importance to online consumer behavior. There was a time when people had ample time to visit the store and purchase the products the stores but, with the changing business scenario the customer prefer the electronic purchase of goods or services as it saves time. Due to time constraint and the advent of better communication technologies; online purchasing has gradually taken shape. Consumers are ready to purchase things through internet that will help them to save their time and effort. Online consumer behavior has been gradually noticed in different spheres of goods and services, where people can have what they want sitting in their closed premises. Almost all types of products are available on the internet. Almost all types of commodities and services are being sold through the websites. Goods and services, consumer durables, books, audio and video cassettes and services like and air tickets can also be purchased online. 2. REVIEW OF LITERATURE Day & Landon, (1977) explained that, sometimes consumers are not satisfied with the manner in which products and services are sold in the online environment. Sometimes items purchased from online do not deliver on time even though online message is very clear to deliver the item within hours to the customer. The strategies that marketers are using have not adequately addressed the changing demands of the consumer to ensure customer satisfaction. Crawford, (1997) in his study, said that the traditional consumer behavior shopping has its own model, which the buying process starts from the problem recognition, information search, evaluation of alternatives, then purchase, and at last post purchase behavior. Dubrovski, 01 said that the marketing function limits the scope of marketing strategies in operating successfully online. New electronic communication marketing variables have exploded the alternatives available to customers globally. These changes have redefined many of the old views of marketing, trade and power. George 02 used theory of planned behavior (TPB) to develop a model for consumers online purchasing behavior. In figure 2, a strong correlation between how trustworthy an individual finds on the internet and how positive an individual's attitude is towards online purchasing and that an individual's attitude towards online purchasing has strong effect on the intention to make them purchase by internet is highly supported. Vyas and Srinivas (02), in their study stated that majority of the internet users were having positive attitude towards online buying of products/services. There exists a need for developing awareness about consumers rights and cyber laws. They also emphasized on better distribution system for online products. Ahasanul Haque& Ali Khatibi, 07 Customers like online shopping, because online shopping saves time. Online shopping is indoor shopping, no need to go outside. By rapid access customers get information quickly. Online shopping eliminates of physical appearance. Copyright Published by IJMRR. All rights reserved 637

3 Alam and Yasim () reported that that website design, reliability, product variety and delivery performances are the four key factors influencing consumers satisfaction of online shopping 3. OBJECTIVES OF THE STUDY The objectives of the study are to know about the consumer s awareness towards online shopping, the determinants, and benefits of online shopping. 4. RESEARCH METHODOLOGY The study is based on primary data. The data required for the study have been collected through 0 respondents. For the purpose of collection of primary data, a well-structured questionnaire was framed which was filled by the respondents. The questionnaire comprises of close ended as well as open ended questions. In close ended questions, checklist questions and multiple choice questions are used. Required data have been also collected from various books, magazines, journals and websites. The random sample method is selected for the study. The respondents are include students, professionals, officials, business people and others out of 0 questionnaires distributed and collected in Pollachi Taluk, Coimbatore District, Tamil Nadu State. The time period allowed to conduct the study is January to June 15. Percentage can also be used to compare the relation terms in the distribution of two or more sources of data. Chi-square test has been used to analyze the relationship between the level of satisfaction and demographic variables. 5. SIGNIFICANCE OF THE STUDY The study is conducted to bring out the consumer awareness on online-shopping in Pollachi Taluk, Coimbatore district. The study can explain how the customer selects online-shopping. This study reveals the customers ideas about the online -shopping services. The study gives suggestion that help the manufactures or dealers to increase their online -shopping marketing services. 6. RESULTS AND DISCUSSION Percentage analysis has been used to analyze the demographic variables of the customers. Respondent s behavior, awareness about the rules of online shopping and benefits and services of online shopping also analyzed with the help of percentage analysis. Chi-Square test has been used to find the relationship between variables of the study. Demographic variables gender, age, marital status, educational qualification, occupation, monthly income, type of family, place of residence and status of computer owned by customers are revealed in the table 1. It can be inferred that 52% of the male and % of the female respondents gave their experience on online shopping. Majority of the respondents - % of the Respondents belong to the age group -30 years, 57% of the respondents are married, 44% of the respondents are educated in PG level, 37% of the respondents are doing business, % of the students are employed, 3% of the respondents are professionals and % are farmers. % of the respondents earned Rs.25, ,000, 61% of the respondents are belong to nuclear family,% of the respondents are rural customers and 2% of the respondents owned computer in their home. Copyright Published by IJMRR. All rights reserved 63

4 Table 1: Demographic Variable of the Respondents Factors Options. of Respondents Percentage (%) Gender Male Female Age Below years -30 years years Above 40 years Marital Status Married Educational Qualification Occupational Status Monthly Income Type of family Place of residence Computer Owned Unmarried Upto HSC Diploma UG Degree PG Degree Business Employed Professional Agriculturist Less than Rs.,000 Rs.,001-25,000 Rs.25,001-50,000 More than Rs.50,000 Nuclear family Joint family Rural Urban Semi urban Yes Table 2: Respondents Behaviour towards the online purchase Factors Options. of Respondents Percentage (%) Awareness about Advertisements 54 online shopping Friends & Relatives Newspaper Existing Customers Frequency Purchase Use of website of Purchase of product through online Factors preference to purchase Occasionally Frequently Once in a month Flipkart Amazon Snapdeal Other websites General Electrical & Electronics Sports Personnel Medical Reasonable Price Quality Image Service From the table 2, it can be inferred that a majority, that is 54% of the respondents aware about the online shopping through advertisements and % aware through friends and Copyright Published by IJMRR. All rights reserved 639

5 relatives. % of the customers frequently purchase the products through online sites. Majority, 60% of the customers purchase their products through Flipkart, 40% of the respondents prefer to buy electrical and electronics goods and 36% of the customers prefer quality in their purchase through online. Table 3: Awareness about the rules of online purchasing Factors Options. of Respondents Percentage (%) Aware about the terms & conditions of online purchasing Highly Aware Aware t aware Aware about the Federal Trade Yes Commission Duties of Federal trade commission To safeguard the customer Provide secure browser Sell the product Other reasons Table.3 shows that out of 0 respondents, 29% % and % of the respondents highly aware, aware and not aware about the terms and conditions of online shopping respectively. 69% of the respondents are aware about the functions of Federal Trade Commision.50% of the respondents said that the duties of this commission is to safeguard the customer, and 25% of the respondents said that the duty is to provide secure browser. Table 4: Benefits and Services of Online Purchasing Factors Options. of Respondents Percentage (%) Benefits Suitability Mode of payment Product delivery Quality assurance Return of products Recommend others to online purchase Overall satisfaction level Time saving Safety Quality Suitable t suitable Cash on delivery Debit cards Credit cards Courier Parcel service Door delivery In-store pick up Very good Good Average Poor Yes Yes Highly satisfied Satisfied Neutral Dissatisfied Table 4 shows that majority 45% of the respondents feel that the benefit of online shopping is a time saving process, % feels about safety, and 15% feels about the quality. 52% of the respondents think that this selling method is not suitable, 50% of the respondents prefer cash Copyright Published by IJMRR. All rights reserved 640

6 on delivery method for the mode of payment, 51% of the respondents prefer door delivery, % of the respondents feel that the quality of the product is very good, majority 66% of the respondents return their products after delivery. 77% of the customers recommend the online shopping method to other people. % of the customers are satisfied with the product and service offered by on line shopping sites. Chi-square Analysis Chi-square test is mainly used to test the significance of one factor over the other. In this study, chi square test is used to analyze the relationship between demographic variables and the level of satisfaction on online shopping. Hypothesis H 01 There is no significant relationship between the age of the respondents and level of satisfaction. H 02 There is no significant relationship between the educational qualification of the respondents and level of satisfaction. H 03 There is no significant relationship between the occupational level of the respondents and level of satisfaction. H 04 There is no significant relationship between the monthly income of the respondents and level of satisfaction. H 01 There is no significant relationship between the size of the respondents and level of satisfaction. Table 5: Chi-Square Results Hypothesis Chi-square value Asy. sign 2 side Result H Significant H Significant H Significant H Significant H Significant From the table 5, it is clear that the chi-square value of age 3.45 (0.009), educational qualification 2.99 (0.000), occupational level 3.11(0.003), monthly income 2.41 (0.000) and size of the family 2.7 (0.001) of the respondents are significant at the level of 1% with the level of satisfaction. The result shows that there is a significant relationship between level of satisfaction of customers and demographic factors age, education, occupation, income and family size. So the hypothesis (H 01, H 02, H 03, H 04 and H 05) formulated in this study is rejected. 7. SUMMARY The retail industry campaign has been repainted by Internet and the rules of the game in retailing are fast altering. The life is becoming fast not only in metros but also in the normal cities. The number of nuclear families is increasing and both husband and wife are working, as they have less time to go to the market for purchasing every now and then. Some other reasons like these, say shortage of time, traffic jams, late working hours, versatility of plastic money and above all the approach of internet at the door step of whosoever desires it. Online retailers have improved their service and consumers have found it convenient. Majority of the respondents belong to the age group of -30 years, married, are educated in PG level, doing business, employed, earned Rs.25, ,000, belong to nuclear family and owned computer in their home. Copyright Published by IJMRR. All rights reserved 641

7 Majority of the respondents aware about the online shopping through advertisements, frequently purchase the products through online sites. Purchase their products through Flipkart, prefer to buy electrical and electronics goods prefer quality in their purchase. Majority of the respondents are highly aware about the terms and conditions, aware about the functions of Federal Trade Commission. Majority of the respondents said that the duties of this commission is to safeguard the customer, Majority of the respondents feel that the benefit of online shopping is a time saving process, gives safety, and quality. Majority of the respondents prefer cash on delivery, door delivery, and recommend the online shopping method to other people. Majority of the customers are satisfied with the product and service offered by on line shopping sites. Chi-square results reveal that on-line shopping in India is significantly affected by various Demographic factors like age, gender, marital status, family size and income. The results of the study could be further used by the researchers and practitioners for conducting future studies in the similar area.. LIMITATIONS OF THE STUDY The result and conclusion of the study is solely based on the information provided by the consumers. Consumer s attitude being dynamic. There is every possibility that the findings of today may become invalid tomorrow. REFERENCES [1] Fram EH, Grandy DB. Internet buyers: Will the surfers become buyers?. Direct Marketing 1995; 57(): [2] Fram EH, Grandy DB. Internet shoppers: Is there a surfer gender gap? Direct Marketing 1997; 59(1): -50. [3] Peterson RA, Bal Subramanian S, Bronnenberg BJ. Exploring the implications of the Internet for consumer marketing. Journal of Academy of Marketing Science 1997; (4): 9-6. [4] Wang N, Liu D, Cheng J. Study on the Influencing Factors of Online Shopping. Proceedings of the 11 th Joint Conference on Information Sciences, Published by Atlantis Press, 0. [5] Nazir S, Tayyab A, Sajid A, Rashid H, Javed I. How Online Shopping Is Affecting Consumers Buying Behavior in Pakistan? IJCSI International Journal of Computer Science ; 9(3). [6] Nagra G, Gopal R. A Study of Factors Affecting on Online Shopping Behaviour of Consumers. International Journal of Scientific and Research Publications 13; 3(6). Copyright Published by IJMRR. All rights reserved 6

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