CHAPTER III DEMOGRAPHIC PROFILE OF RESPONDENTS

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1 CHAPTER III DEMOGRAPHIC PROFILE OF RESPONDENTS A demographic is a group of consumers that share a collection of marketrelevant attributes. This group can be any number of people across the same time frame. Market-relevant attributes can include any number of shared values, physical attributes, experiences, beliefs, environmental conditions, cultures, or political or financial elements that can be used to increase awareness, loyalty, sales, or product improvement. Generally, enough of these attributes are combined together to form a concise image of the demographic group: this forms a demographic profile. These profiles also display the characteristics of a typical member within these subgroups/cultures. This allows the development of a marketing strategy: providing the foundation for a solid marketing plan. Demographic research is a powerful and functional tool that can personalize marketing campaigns, increase interest and loyalty, as well as provide improved functionality and efficiency - with minimal or no loss of time and efficiency. Demographic Targeting solution allows marketeers to reach consumers identified by their demographic characteristics, such as age, gender and many others. With number of increasing online users and high average frequency of visits, demographic targeting provides the broadest reach (millions of impressions) of any online shopping providers. Demographic characteristics such as age, gender, income, occupation, education, marital status are most often used as the basis for the market study. Demography refers to the vital and measurable statistics of the population. Demographics help to locate a target market and this information is not accessible and 132

2 cost-effective way to identify a target market. The various demographic variables are those that reveal the ongoing trends such shift in the age, income, education etc. that signals business opportunities. Research of the Internet shopper has typically included demographic questions of age, education and ousehold income (Fram & Grandy, 1995). Over time the Internet buyer, once considered the innovator or early adopter, has changed. While once young, professional males with higher educational levels, incomes, tolerance for risk, social status and a lower dependence on the mass media or the need to patronize established retail channels (Ernst & Young, 2001; Mahajan, Muller & Bass, 1990), today s Internet buyer shows a diversity of income and education (U. S. Dept. of Commerce, 2003).For Internet buyers, gender, marital status, residential location, age, education, and household income were frequently found to be important predictors of Internet purchasing (Fram & Grady, 1997; Kunz, 1997; Mehta & Sivadas, 1995; Sultan & Henrichs, 2000). Sultan and Henrichs (2000) reported that the consumer s willingness to and preference for adopting the Internet as his or her shopping medium was also positively related to income, household size, and innovativeness. In 2000, women represented the major online holiday season buyer (Rainne, 2002; Sultan & Henrichs, 2000). The challenge faced by online marketers is to invite and retain the young customers by offering them a bouquet of options to choose from; since the penetration of digital products is the highest amongst youth. Generation next will determine the future of the online market in India. It is these young men and women who surf the net regularly and are more knowledgeable about the use of technology and their applications then what their parents know. The young are well connected, well aware and are more influenced by its community and society. The youth is a part of the 133

3 social fabric and has to be dealt with delicately and carefully. The new generation is connected in a different way, the way of wireless and broadband. The youth will control and determine what it wants and it should be hot, happening and big. The success and acceptance of any technology in a country depends upon the nature and direction of the change that it brings in the lives of the people. How far and in what way the new wave of the changed processes influences the way people act and react very much decides and determines whether the new state of the art will be marked as the building block of a developing economy. Past studies reveal that older persons are more resistant to new technologies because they have achieved remarkable success with their own working habits, nourishing their own values and mastering their own style of leadership. Older people are not very receptive to change of technology and work procedures. As compared to older persons, youth is more appropriate for targeting as the receiver of new technology. Youth or younger generation has still to set the ground for achievements by developing resources and skills. They have more energy to groom themselves according to the changing demands, they are more flexible in their approach towards a new way of living, they can be expected to adjust to and welcome new technology with open arms as compared to older people. In order to increase market potential of online shopping, the knowledge of demographics is important for the marketer to formulate the online marketing strategies to woo the customers. It is important to understand the demographic factors because many important decisions are often influenced by the demographic variables. This study is primarily conducted to understanding the impact of demographics in influencing the consumption of products over internet. The demographics play a vital role in figuring out the psyche of buyers in offline marketing. Imbibing the same for online would be helpful to the corporate to profile 134

4 potential internet buyers. It would help them to devise strategies and customize the offerings according to Age, Gender, Occupation and Income. The differential price technique could be adopted for different age, occupation and Income groups. Products/services could be customized according to gender. Hence, it is very useful for the marketers to identify the impact of demographics. It could be a significant cue to the corporate to tailor made online services suitable to different occupation groups. This chapter presents the demographic profile of respondents. The data for the study has been collected from the 800 respondents of different districts of Punjab, Haryana and U.T of Chandigarh with the help of the questionnaire developed by the researcher. The survey has been carried out on the basis of some demographic characteristics or factors like occupation, age, income, education etc. Table 3.1 Association of Age and Online Shopping Ho (a): Age has no association with online shopping. H1 (a): Age has significant association with online shopping. Frequency Percent Valid Percent Cumulative Percent Valid years years above 45 years Total Missing System 4.5 Total

5 Test Statistics Frequency of online shopping Age Chi-Square a b Df 3 2 Asymp. Sig a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is Interpretation: Age is one of the important demographic variable that has an influence on online shopping. In the present table four age groups are considered in determining the impact on usage of online shopping among Indian consumers i.e. below 18 years of age, years, years of age and more than 45 years. The table explained that the value of chi square is with 3 degree of freedom. It is significant (P<.05). Therefore we reject the null hypothesis Ho (a) and accept the alternative hypothesis H1 (a). Hence, it is concluded that age has significant association with online shopping. Out of the four age groups, the maximum respondents i.e. 53.2% respondents lies between years and 42.9% lies in the age group of year. It is found that youngsters have the highest perception and prefers more online shopping than the age group above 45 years. The reason being that youngsters are computers savvy, more skillful in using online shopping. Young consumers wants to do shopping with convenience and comfort without hassles which is found in online shopping. Young people are quick in decision making and take risks while adopting new trends of shopping. The most important reason that most of the shopping sites are offering products which appeals and lures the youngers. On the 136

6 other hand, the matured respondents above the age of 45 years are reluctant to do online shopping because they are risk averse and would like to feel and experience the product before to buy the product. As far as the age variable is concerned, users of online shopping is young, as the new technological advances in online shopping requires individual capacity to understand the complexities and changes in the new technologies and develops a positive attitude towards it. Table 3.2 Association of Gender and Online Shopping Ho. (b): Gender of consumer has no association with online shopping. H1 (b): Gender has significant association with online shopping Frequency Percent Valid Percent Cumulative Percent Valid Male Female Total Missing System 4.5 Total Test Statistics Frequency of online shopping Gender Chi-Square a.000 b Df 3 1 Asymp. Sig

7 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is Interpretation: - Gender was included in the survey in order to find the difference between males and females concerning beliefs towards online shopping. The table explained the value of chi-square is.000 with 3 degree of freedom. It is insignificant (P>.05). Therefore we accept the null hypothesis Ho (b) and reject the alternative hypothesis H1(b). It is concluded that gender has no association with online shopping. The study found that both the males and females are showing interest in preferring online shopping. Gone are the days when females were not allowed to do the job and take important decisions in the family. But now a days, the nuclear urban families are mushrooming up and females play an active role in decision making. Because of the dual spousal income, the purchasing power of females has been increased and they wish to enjoy the modern technology. There has been a fundamental change in shopping patterns in terms of frequency and the shopping cycle. Females are more likely to go in for the impulse purchase and buy more often. Rising working females has also given boost to online shopping. Now days, females believes in status quo and imitate others in online shopping. It is seen that now females are not home makers, rather they are home managers. Also because of the growing trend of nuclear urban families and dual spousal income, the role and status of women is very important in the decision making related to when, where and how of purchase decisions. Hence, there has been an active involvement in decision making in family. Keeping in mind, the online shopping companies are offering attractive offers and promotions to attract both the genders to buy the products online. The study also found that as online 138

8 shopping is growing trend among Indian consumers, so both males and females do give preference to online shopping in India. Table 3.3 Association of Marital Status and Online Shopping Ho(c): Marital Status of consumer has no association with online shopping. H1(c): Marital Status of consumer has significant association with online shopping. Frequency Percent Valid Percent Cumulative Percent Valid Single Married Total Missing System 4.5 Total Test Statistics Frequency of online shopping Gender Chi-Square a b Df 3 2 Asymp. Sig a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is

9 Intrepretation: - Marital status play a significant role in buying behavior related to purchase of goods and services. In the table 3.3, the value of chi-square is with 3 degree of freedom. It is significant (P<.05). Therefore we reject the null hypothesis Ho(c) and accept the alternative hypothesis H1(c). Hence marital status has significant association with online shopping. It is concluded that young and single prefer more online shopping than married persons. As in the table the maximum respondents are unmarried i.e. 61.7% are singles who prefers online shopping in India. The research found that unmarried people have less responsibility as compare to the married persons in Indian culture. They are free to do enjoyment, fun, shopping etc. Unmarried persons or singles are frequent switchers in electronic gadgets like mobiles etc. Through online shopping, one can resell the old commodities at good prices. So this is also one of the reason that they prefer online shopping. Moreover young and unmarried people perceive online shopping as an activity of fun, ease, relief and enjoyment. Among the consumers, unmarried persons are early adopters in enjoying the modern technology. The most important reason that the young and singles are pulling of lifestyle shopping in a huge mass now a day. Shopping through online makes the experience of lifestyle shopping real-time and electrifying for young Indian people. The reason behind this is that online stores in India accommodate very good product line and quality of lifestyle products such as branded watches, sunglasses, bags, belts and more. The unmarried and singles are more choosy in selection of goods. Results show that marital status specifically does not influence any of online shopping parameters. The result can be explained due to nascent stage of online shopping in India, due to which single/married people are mainly using Internet for their specific needs. The evolution of online shopping in the future should see the different patterns between single and married people in the future. 140

10 Table 3.4 Association of Income and Online Shopping Ho (d): Income of consumer has no association with online shopping. H1 (d): Income of consumer has significant association with online shopping Frequency Percent Valid Percent Cumulative Percent Valid Below Total Missing System 4.5 Total Test Statistics Frequency of online shopping Gender Chi-Square a a Df 3 3 Asymp. Sig a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is Interpretation: Income was included to find if the respondents that have a higher income spend more on online shopping or not. Income is one of the important and sensitive demographic variable. The above table depicts that the value of chi-square is 141

11 with 3 degree of freedom. It is significant (P<.05). Therefore we reject the null hypothesis Ho (d) and accept the alternative hypothesis H1 (d). Hence, the income of consumer has significant association with online shopping. As in the table 42.3% respondents who lies in the income slab of Rs and 30.2 % of respondents lies in the income slab of Rs and 21.1% respondents having the income less than Rs It has been found that the maximum respondent s lies between Rs which prefers more online shopping as compare to others. If we look at the trends of online shopping we will find that initially young men or people with very high income used to shop online but now this profile has completely changed and the target audience has widened including women, students and middle income group people. In Indian culture, the profile of online shoppers has completely changed and the target audience has widened including middle income group people because the people in the middle income group are open to new shopping avenues and like to experiment more. Most people prefer to shop online as it saves huge amount of time and they can easily go through the entire inventory without any mess and chaos that they face in physical stores. There are number of options through which customer can pay once he/she has selected a product online which includes credit cards, debit cards, cheque, cash on delivery etc. With the deals and discounts available, more and more number of people are engaging in Online shopping. The main benefit of shopping online is that you can compare products and prices of different vendors online at same time and order things as per your likings plus you don't have to worry about traffic jams on roads or long queues at stores. Another benefit is that the online shopping has no time constraint i.e. you can buy anything at your own comfort and at the time which suits you. Apart from these benefits you can also avail coupons, promo codes and avail discounts while shopping online. 142

12 Table 3.5 Association of Education and Online Shopping Ho (e): Education of consumer has no association with online shopping. H1 (e): Education of consumer has significant association with online shopping Frequency Percent Valid Percent Cumulative Percent Valid Higher Secondary Graduate Post Graduate Total Missing System 4.5 Total Test Statistics Frequency of online shopping Gender Chi-Square a b Df 3 2 Asymp. Sig a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is Interpretation: The table reveals that the value of chi-square is with 3 degree of freedom. It is significant (P<.05). Therefore we reject the null hypothesis Ho(e) and accept the alternative hypothesis H1(e). i.e. the education has significant 143

13 association with online shopping. As in the table 69.9% are post graduate respondents. The most important reason that highly qualified persons are computer savvy, they are better employed and have less time to do physical shopping. They find online shopping easier and entertaining. They are less fearful about financial loss and know how to do online shopping in a safe manner.the highly qualified persons are generally employed in important positions in the organizations, they are busy all time. But as online shopping is available 24x7, time saving and availability of best options hence, it facilitates the professionals in greeting their seniors, family anywhere by sending gifts through online shopping. Table 3.6 Association of Occupation and Online Shopping Ho (f): Occupation of consumer has no association with online shopping H1 (f): Occupation of consumer has significant association with online shopping Frequency Percent Valid Percent Cumulative Percent Valid Business Service Any other Total Missing System 4.5 Total

14 Test Statistics Frequency of online shopping Gender Chi-Square a b Df 3 2 Asymp. Sig a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is Interpretation- Occupation is one of the important demographic and social factor that influence online shopping in India. The table reveals that the value of chi-square is with 3 degree of freedom. It is significant (P<.05). Therefore we reject the null hypothesis Ho(f) and accept the alternative hypothesis H1(f). Hence occupation has significant association with online shopping. In the above table 53.5 % respondents are service man and 45.5 % are businessman. The table shows that people who are employed in the organizations do prefer online shopping than non-employed like students. Employed persons are decision makers for their choice and selection of products. They have purchasing power to buy the products. As online shopping channel is a growing trend and status symbol now days. So they like to experience and enjoy the online shopping. In the case of businessman, they have less time to go in retail stores so online shopping is the best substitute for this segment. 145

15 Table 3.7 Association of Ability to Use the Internet and Online Shopping Ho(g) Ability to use internet of consumer has no association with online shopping. H1(g): Ability to use internet of consumer has significant association with online shopping Valid Cumulative Frequency Percent Percent Percent Valid not skillful somewhat skillful Skilful very skillful Total Missing System 4.5 Total Test Statistics Frequency of online shopping Gender Chi-Square a a Df 3 3 Asymp. Sig a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is b. cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is

16 Interpretation: The value of chi-square is with 3 degree of freedom. It is significant (P<.05). Therefore we reject the null hypothesis Ho (g) and accept the alternative hypothesis H1 (g). Hence the ability of usage of internet has significant association with online shopping. The maximum respondents stated that people who are skillful, they do more online shopping. The reason being that they are computer savvy, they know how to do safe shopping. The internet users know how to search, find and buy the products through the shopping sites. They do not hesitate in exploring the new shopping sites offering lifestyle products. So, there is direct relationship between usage of internet and online shopping. They are more knowledgeable as compare to non internet users. Moreover they are more confident and feel ease in use while doing online shopping. REFERENCES 1. Churchill, Iocobucci, Israel; Marketing Research, Cengage Learning,India Edition 2. Dr. S.P Gupta; Statistical Methods, Third Edition 3. Rutledge John Edward (2001), Ph.D. Thesis, Dissertation Abstract International, Vol. 62, No.2. August. 4. Dahiya Richa (2012), Impact of demographic factors of consumers on online shopping behaviour: a study of consumers in India, I.J.E.M.S., VOL.3(1) 2012: Ramaswamy V.S., Namakumari S. Marketing Management, Mcmillan Business Books, Third Edition, Amir d. Aczel, Complete Business Statistics, Mcgraw Hill International Edition, Sixth Edition 147