Consumer Preception Towards Online Shoping

Council for Innovative Re assay www. cirworld. com transnational diary of Man stay along withment & knowledge engine room Volume 1, n peerless1, May, 2012 CONSUMERS sensing TOWARDS ONLINE SHOPPING- THE CASE OF PUNJAB Pawan Singh Rat mo ABSTRACT India has more(prenominal) than ascorbic acid million profit custom of faithfuls and servicesrs out of which unitary half opt for online acquires and the yield is advance sharply e real year. The growth in the get along of online knock offpers is massiveer than the growth in net income users, indicating that more profit users argon becoming comfor panel to shop online.The strength of acquire without leaving your personate is of great interest to many consumers. zero(prenominal) entirely does online shop unfold re nitty-grittylyy ripe(p) deals, merely in any case brings optimum doohickey to the consumers. Moreover, the use of profits tools for equipment casualty clear-cut and comparing provides an additional a dvantage in consumers final decision, as they pl below barter for their desired carrefours in the lowest uncommitted price. This paper focuses on the concord of demographic profiles of adopters and non-adopters of online shop.For this purpose the data from 400 respondents was equanimous in the form of questionnaires. The sight has been conducted in 3 cities of Punjab, a sample of urban respondents were selected from the Jalandhar, Ludhiana and Amritsar The paper also analyses the various reasons for word sense and non-adoption of online shop. KEYWORDS Online let, Consumer Perception, voice part psycho compend, Adopters and Non-Adopters of online shopping REVIEW OF lit Bellman et al (1999) investigated various predictors for whether an private will purchase online.These authors solved that demographic variables, such(prenominal) as income, education and age, put on a modest impact on the decision of whether to mis figure online, whereas the more or slight primary( prenominal) determinant of online shopping was previous behaviour, such as earlier online purchases. Standing (1999) express that traditionally retail buy the farm agencies make believe acted as intermediaries between airline companies and sweeping travel companies and the consumer. The network and the World wide-cut Web provide a unit raw(a) set of challenges and opportunities for this business sector.The study threat stems from airlines and wholesale travel companies whirl their returns and services directly to the customer without the avail of travel agencies. Large online agencies find gained pregnant attention in the travel industry and provide roughly evidence of a restructuring of the travel industry sector. Leong (2001) examined the merchandise strategies select by local hotel establishments in the agonistic hospitality industry. It also analyses the adoption and comp 1nt of nurture technology in strategical merchandise.It was entrap that well-nigh ho tels seemed to defer a shit embraced the trade concept, given the existence of extensive merchandising plans. Although around hotels appe atomic number 18d to have successfully incorporate information technology into their tradeing campaigns, the train of shipment seemed to be insignifi fecal mattert. Following a brief comparison with a mistakable US study, the paper concludes that there be single minor differences between US and Singapore hotels in m iodintary apprize of their merchandising practices. Parasuraman (2002) decl ard that the motivations for this special clear ara and jut out a conceptual framework pertaining to the issues theme.Using this frameworks a backdrop, they then offer an overview of the remaining names by segmenting them into categories and discussing their birth to the framework. They conclude by highlighting research avenues for augmenting our understanding of marketing to and serving customers by dint of the cyberspace. Sigala (2003) stated that despite the exponential growth of e-commerce on the net profit, little is still known on how the new medium is transforming marketing concepts/practices and their effectiveness.This falsifiable study aims to fill in this gap. This article first analyzes the networks capabilities and features as well as the new virtual market blank space that Internet advances have fostered. After reviewing models and strategies for Internet marketing, an Internet marketing mix is proposed prove on the Internet strategies of hotels in Greece that were investigated. go to bed and Lee (2003) explored consumers concerns just about remuneration bail and its relationship to online shopping spot and authentic purchases.They observed a negative relationship between attitude towards online shopping and concerns about online payment trade protection system. Consumers with a positive attitude seem to be less concern about payment security. Bechrer (2004) stated that Internet marketin g is a field that is continue to grow, and the online auction concept may be defining a totally new and unique distribution alternative. Very a few(prenominal) studies have examined auction sellers and their INTRODUCTION With close half of the Indian population being young and net savvy, there has been an plain ordinary rise in the numbers game of online shoppers.The recent growth in the middle culture in the country has in fact made consumers more sure about different options and encouraged them to search and eventually purchase online. India has more than coulomb million mesh users out of which one half opt for online purchases and the number is boost sharply every year. The growth in the number of online shoppers is greater than the growth in Internet users, indicating that more Internet users are becoming comfortable to shop online.Until recently, the consumers chiefly visit online to reserve hotel rooms and buy air, rail or movie tickets, books and gadgets and giz mos, but now more and more offline harvest-home like clothes saris, kurtis, T-shirts shoes, and designer lingerie, consumer durables are being purchased online. At preface the market is estimated at Rs. 46000 crore and is growing at 100 part per year. The two closely normally cited reasons for online shopping have been doojigger and price. The capability of purchase without leaving your place is of great interest to many consumers.Not plainly does online shopping offer really acceptable deals, but also brings optimum public convenience to the consumers. Moreover, the use of Internet tools for price hard-hitting and comparison provides an additional advantage in consumers final decision, as they can purchase their desired products in the lowest procurable price . On the contrary, privateness and security have been the great concerns, responseing many masses to browse the Internet for informational matters than for acquire online. 1 pageboy www. ijmit. com Council for Innovative explore www. cirworld. om transnational daybook of Management & information engine room Volume 1, No 1, May, 2012 network marketing strategies. This research examines the internet auction phenomenon as it relates to the marketing mix of online auction sellers. The data in this study indicate that, whilst there is great diversity among businesses that utilize online auctions, diaphanous cost leadership and differentiation marketing strategies are both evident. These two approaches are further distinguished in equipment casualty of the internet usage strategies employed by each group.Ryan (2004) conducted a research on the mosaic of institutional issues associated with gaining credibility for internet marketing standards. Strong claims for a predominantly self-regulatory approach are reviewed in colligation with opposite factors that inhi slice credibility, namely competing internet worldviews, weak moral coherency and offline ambiguity about respective institut ional roles, curiously as regards moral dimensions of notions of regulation and self-regulation. Wang (2006) conducted a research to examine the current use and predict future Web- showd marketing activities of U. S. onvention and visitor bureaus. A survey was sent to 600 haphazard selected American convention and visitor bureaus with a focus on assessing the applications included in the bureaus Web sites, their Web site procession techniques, and customer relationship management programs in relation to these Web sites. The results indicate that close bureaus Internet marketing activities are relatively limited, focusing on providing travel information to prospective visitors. Bengtsson (2007) stated that adopting the Internet for locomote marketing operations opens up challenging opportunities for firms of all sizes.However, such adoption faculty destroy investments in present market channels and thus has the characteristics of radical innovation. The results of abstract s how that composition of factors on which firms base their decision to adopt advanced Internet-establish marketing operations varies crucially with firm size. bring up ting (2010) stated that few civilise or educational studies have concurrently explored both internet marketing and geological formational commitment, and of those that have, only direct effects were examined. This study clarifies the relationship between school organizations internet arketing and teachers organizational commitment by examining the mediating role of teachers job mesh and job satisfaction. RESEARCH OBJECTIVES The study has been conducted to account the consumers perception towards online shopping in Punjab. The specific objectives of the study are ? ? To order the demographic profile of adopters and non-adopters of online shopping in Punjab. To identify the various reasons for adoption and non-adoption of online shopping by the consumers of Punjab DATABASE AND METHODOLOGY The research is mainl y descriptive in nature.The data was compile in the form of questionnaires. The study has been conducted in 3 cities of Punjab, a sample of urban respondents were selected from the Jalandhar, Ludhiana and Amritsar. The survey was carried out on 450 respondents. However, 31 Questionnaires were rig to be incorrect or irrelevant, so a total of 50 questionnaires were deliberately rejected. Hence, the study sample was decreased to 400 respondents. The data was collected in person (and via emails) in the months of January 2012 to March 2012. The questionnaire was pretested in parliamentary procedure to identify possible problems in terms of clarity and accuracy.Thus, several changes were made in order to improve the presentation of the items, based on comments and feedback. Apart from demographic-related questions, fivepoint Likert scale was employ for all the questions concerning consumers expectations and perceptions about the online shopping. Most of the Respondents of the age gro up 36-45 years (44. 6%) were effectuate to be adopters of online shopping (Table 1). Most of the potents (55. 3%) were the adopters as compared to females, where 53. 7% were non-adopters. The adopters were aroundly home graduates (48. 9%) with monthly income in the bunk of Rs. 0000-Rs. 30000. The respondents those who use internet from 5 to 7 hours a day were found to be adopters of online shopping. The consumer responses ranked the retail websites at add together 1 with Electronics and comparison shopping websites at Number 2 and 3 respectively. photographic plate items were ranked at Number 10 by the Punjab consumers (Table 2) Table 1 demographic profile of Adopters and Non Adopters Demographics Adopters No. Age 15-25 26-35 36-45 higher up 46 Gender Female Male 84 104 44. 6% 55. 3% 114 98 53. 7% 46. 2% df=1 chi-square=53. 892 p=0. 000 34 67 84 03 18. 0% 35. 6% 44. % 1. 5% 45 72 91 04 21. 2% 33. 9% 42. 9% 1. 8% df=3 chi-square=48. 241 p=0. 000 % Non Adopters No. % Chi squ are 2Page www. ijmit. com Council for Innovative look into www. cirworld. com Education at a lower place ammonium alum Graduate Post Graduate Any Other Monthly Income beneath Rs. 10000 Rs. 10000-Rs. 20000 Rs. 20000-Rs. 30000 More than Rs. 30000 Not utilise Daily usage of the Internet 1 hour and below 1-3 hours 3. 1-5 hours 5. 1-7 hours 7 hours and to a higher place 21 38 56 65 08 18 37 78 55 00 31 43 92 20 transnational Journal of Management & Information engine room Volume 1, No 1, May, 2012 6. 4% 22. 8% 48. 9% 10. 6% 56 62 86 08 26. 4% 29. 2% 40. 5% 3. 7% df=3 chi-square=72. 452 p=0. 000 9. 5% 19. 6% 41. 4% 29. 2% 0. 0% 42 51 69 45 05 19. 8% 24. 0% 32. 5% 21. 2% 2. 3% df=4 chi-square=67. 453 p=0. 000 11. 1% 20. 2% 29. 7% 34. 5% 4. 2% 47 53 71 39 02 22. 1% 25. 0% 33. 4% 18. 3% 0. 94% df=4 chi-square=77. 344 p=0. 000 Table 2 Most visited family line of websites Category of Websites Retail Consumer Electronics Comparison shop Computer Hardware Apparel Movies Books Flowers/Gi fts/Greetings jewelry/Luxury Goods/Accessories Home itemsRank 1 2 3 4 5 6 7 8 9 10 Mean 3. 45 3. 12 2. 98 2. 87 2. 64 2. 55 2. 03 1. 76 1. 46 1. 55 Reasons for adoption or non-adoption of online shopping The factor analysis was utilize on the responses provided by respondents. Factor analysis is a salutary delegacy of identifying potential or underlying factors from an array of evidently important variables. In a more general way, factor analysis is a set of techniques, which, by analyzing correlations between variables, reduces their number into fewer factors, which explain much of the veritable data, more economicly. (Malhotra,2002).In the present study, the factor analysis was employ in order to identify the various reasons for online shopping by the consumers, the responses obtain were put to factor analysis and the result so obtain were Table 3 KMO and bartletts test subject to Kaiser- Meyer- Olkin (KMO) measure of sampling adequacy and Bartletts Test of Sphericity. The approximate chi-square value is 621. 103 with df 290, which is significant at 0. 000 level. (Table 3). The value of KMO statistics (0. 783) is also large ( 0. 5). Hence, all factors are not considered equally important for Television viewing.From table 4, it is evident that the first four variables map the 62. 092 % of magnetic declination. Therefore, only these four factors with the variance greater than 1. 0 are retained and the other factors are not included in the model. Thus, from eigen values in table 3, we ask out only 4 factors from the 13 variables. 3Page www. ijmit. com Council for Innovative Research www. cirworld. com external Journal of Management & Information engineering science Volume 1, No 1, May, 2012 Kaiser-Meyer-Olkin Measure of try Adequacy. Bartletts Test of Sphericity Approx.Chi-Square Degree of independence Significance .783 621. 103 290 . 000 Table 4 thorough edition explained Initial Eigenvalues dowry 1 2 3 4 5 6 7 8 9 10 11 12 13 Total 4. 150 3. gross 2. 718 1. 411 0. 892 0. 789 0. 618 0. 601 0. 590 0. 449 0. 332 0. 217 0. 189 % of fluctuation 27. 823 14. 230 10. 783 9. 256 6. 068 5. 130 5. 003 4. 781 4. 350 4. 263 2. 963 2. 788 2. 562 Cumulative % 27. 823 42. 053 52. 836 62. 092 68. 160 73. 290 78. 293 83. 074 87. 424 91. 687 94. 650 97. 438 100. 00 stemma Sums of Squared Loadings Total 4. 150 3. 144 2. 718 1. 411 % of Variance 27. 823 14. 230 10. 783 9. 56 Cumulative % 27. 823 42. 053 52. 836 62. 092 gyration Sums of Squared Loadings Total 3. 921 3. 101 2. 318 1. 290 % of Variance 27. 823 14. 230 10. 783 9. 256 Cumulative % 27. 823 42. 053 52. 836 62. 092 Extraction Method jumper lead ingredient Analysis Factor loadings are simple correlations between the variables and factors. The most commonly used method is the Varimax Table 5Rotated Component Matrix revolution procedure. This is an orthogonal method of rotation that minimizes the number of variables with high loadings of a factor, thereby enhancing the interpr etability of the factors.Orthogonal rotations results in factors that are uncorrelated. Component S. No. Statements 1 2 3 4 1 2 3 4 5 I select to purchase online callable to flagitious discounts easy online It is easier to buy online kind of than vent on to shop at shop shop online gives you larger options to opt from It is easier to pay online through point of reference visiting card or direct bank transit The quality of products purchased online from trusted sites is very good and are available at economical prices shop online saves my time and money as I dont have to go through heavy handicraft also saving fuel 609 . 361 . 212 . 341 . 425 . 380 .427 . 521 . 517 . 489 . 336 .379 . 389 . 412 . 656 . 316 .235 . 260 . 352 . 419 . 296 6 .552 .272 .461 4Page www. ijmit. com Council for Innovative Research www. cirworld. com 7 8 9 10 11 12 13 International Journal of Management & Information Technology Volume 1, No 1, May, 2012 . 402 . 642 . 285 . 403 . 502 . 325 . 580 . 3 26 . 561 . 223 . 326 . 346 . 436 . 352 . 561 . 452 . 311 . 262 . 663 . 516 . 431 . 613 . 497 . 591 . 570 . 371 . 696 . 280I am a bit concerned about the security and privacy of my payments online I cannot buy all the products on discount but close to(prenominal) selected products only There are some merchant marine delays in getting the product I do not use the denotation card so I cannot often shop online I privilege to purchase online due to easement of online purchase procedures I physically need to harmonise the products originally acquire it I can read the reviews also before purchasing online which helps me to select the right product at economical pricesPrincipal Component Analysis under the rotation method (Varimax with Kaiser Normalization), rotation converged in 15 iterations. The following four components (Table 6) may be extracted Component 1 Factor 1,5,8,13 (Price sense) Component 2Factor 2,3,6 ( whatchamacallum and anatomy) Component 3Factor 4,11 ( diffused payment options) Component shopping) 4Factor 7,9,10,12 (Challenges of online The rotated component matrix suggests presence of the four co-ordinated factors.Table 6 Naming of Factors Factor No. F1 Name of Dimension Price Consciousness Item No. 1 I prefer to purchase online due to heavy discounts available online Variables Factor loading . 609 5 8 13 F2 wash room and Variety 2 3 6 F3 Easy payment options 4 11 F4 Challenges of online shopping 7 9 10 12 The quality of products purchased online from trusted sites is very good and are available at economical prices I cannot buy all the products on discount but some selected products only.I can read the reviews also before purchasing online which helps me to select the right product at economical prices It is easier to buy online sort of than going on to shop at inclose Shopping online gives you larger options to admit from Shopping online saves my time and money as I dont have to go through heavy traffic besides saving fuel It is ea sier to pay online through credit card or direct bank transfer I prefer to purchase online due to easement of online purchase procedures. I am a bit concerned about the security and privacy of my payments online There are some shipping delays in getting the product.I do not use the credit card so I cannot often shop online I physically need to check the products before purchasing it .425 . 642 . 580 . 521 . 517 . 552 . 656 . 663 . 613 . 591 . 570 . 696 Price Consciousness It is the most significant factor with 27. 823 percent of total variance explained. This explains the intent of Punjab Consumers being price sensitive. Most of the consumers prefer to buy some selected products online because they will get heavy discounts in comparison to store purchases. Also, the consumers feels that there are good websites available which can be trusted for purchases. Page www. ijmit. com Council for Innovative Research www. cirworld. com International Journal of Management & Information Techno logy Volume 1, No 1, May, 2012 Convenience and Variety It is the second most significant factor with 14. 230 percent of total variance explained. The consumers behold that shopping online gives them larger options to choose from. Shopping online is very convenient as one has to just open a laptop computer or PC to shop rather then getting seduce and move over through rush hour traffics. Easy Payment options It is the third most significant factor with 10. 83 percent of total variance explained. Consumers feel that carrying exchange or credit cards all the way to the store is meaning less if one can purchase the comparable product from their home. Challenges of Online Shopping It is the fourth most significant factor with 9. 256 percent of total variance explained. The only worry of consumers is regarding the trustiness of some websites, since they have to give their credit card expatiate to shop online. REFERENCES ? Bechrer C. (2004). Characteristics and internet marketing s trategies of online auction sellers.International Journal of Internet trade and Advertising. 24(1), 24-37 Bellman, S. , Lohse, G. and Johnson, E. (1999) Predictors of online buying behaviour, Communications of the ACM, 42 (12), 32-38. Bengtsson M. (2007). Integrating the Internet and marketing operations A Study of Antecedents in Firms of polar Size. International Small Business Journal. 25(1), 27-48 get up ting S. (2010). The Effect of Internal Marketing on Organizational Commitment trick Involvement and Job Satisfaction as Mediators. Educational Administration Quarterly. 9(4), 65-74 Know, K. and Lee, J. (2003) Concerns about payment security of Internet purchases a spot on current on-line shoppers, enclothe and Textiles Research Journal, 21 (4), 174-184. Leong C. (2001). Marketing practices and Internet marketing A study of hotels in Singapore. Journal of Vacation Marketing. 7(2), 179-187 Parsuraman A. (2002). Marketing to and parcel Customers through the Internet An Overv iew and Research Agenda. Journal of the Academy of Marketing Science. 30(4), 96-105 Ryan P. (2004).Internet marketing standards institutional coherence issues. International Journal of Internet Marketing and Advertising. 15(4), 84103 Schiffman L. (2007) Consumer Behavior , New Delhi apprentice Hall India Sigalla M. (2003). Developing and Benchmarking Internet Marketing Strategies in the Hotel Sector in Greece. Journal of Hospitality & Tourism Research. 27(4), 375-401 Standing C. (1999). Internet marketing strategies used by travel agencies in Australia. Journal of Vacation Marketing. 6(1), 36-42 Wang Y. (2006).Futuring Internet Marketing Activities Using Change passion Analysis. Journal of Travel Research. 45(2), 158-166 ? ? ? CONCLUSIONS It was seen from the study that most of the Respondents of the age group 36-45 years were found to be adopters of online shopping. Most of the Males were the adopters as compared to females, where 53. 7% were non-adopters. The adopters were mostl y post graduates with monthly income in the range of Rs. 20000-Rs. 30000. The respondents those who use internet from 5 to 7 hours a day were found to be adopters of online shopping.Further, the factor analysis was applied to understand the various reasons for adoption and non-adoption of online shopping by the respondents. The following four factors were found to be significant Price Consciousness, Convenience and Variety, Easy Payment options and Challenges of Online Shopping. Most of the consumers prefer to buy some selected products online because they will get heavy discounts in comparison to store purchases. Also, the consumers feels that there are good websites available which can be trusted for purchases.The consumers perceive that shopping online gives them larger options to choose from. Shopping online is very convenient as one has to just open a laptop or PC to shop rather then getting ready and pass through rush hour traffics. Shopping online saves time and money along w ith lesser effort is required in comparison to store purchases. Consumers feel that carrying cash or credit cards all the way to the store is meaning less if one can purchase the resembling product from their home. The educated consumers are aware(p) of the buying procedures online which they feel are pretty simple.The only worry of consumers is regarding the trustworthiness of some websites, since they have to give their credit card details to shop online. Many of the consumers are aware of the various online scams due to which they are very concerned and reluctant while providing their credit card information online. Also the online purchases take a longer time in shipments and deliveries. The psychology of an Indian consumer is still the same of checking the product physically before purchasing it, which creates a mental hurdle for online shopping. ? ? ? ? ? ? ? ? 6Page www. ijmit. com