SJIF Impact Factor: 6.

093 Volume: 4 | Issue: 7 | July | 2019 ISSN: 2455-7838(Online)

EPRA International Journal of Research and Development (IJRD)
Peer Reviewed Journal

A STUDY ON CONSUMER PERCEPTION TOWARDS

ONLINE SHOPPING

Dr. Rajiv Sailaja

Assistant Professor, MBA Department, CRIT Engineering College, Anantapur, Andhra Pradesh

ABSTRACT
Online shopping is the process of buying goods and services from merchants who sell on the Internet. Since the
emergence of the World Wide Web, merchants have sought to sell their products to people who surf the Internet.
Shoppers can visit web stores from the comfort of their homes and shop as they sit in front of the computer Now a day,
online shopping has become popular among people, they have become techno savvy and feel very comfortable in using
internet. So online shopping has becoming a trend that is why it is necessary to make a study on online shopping usage
and perception. The main aim of this research is to study the perception of the customers towards online shopping and
also discriminate this perception gender vise. For this purpose, with help of convenient sampling method 150
respondents were selected and data were collected through structured questionnaire. On the basis of data analysis it is
found that most of the customers were perceived that online shopping is better option than manual shopping and most
of the customers were satisfied with their online shopping transactions. Customers are accessing their net at their home
and office/ college. Largely customers are buying clothe, electronics items and accessories. Most alarming barrier for
online shopping was customers have to give their credit card number and they can’t see products personally. Customers
agree with the statement that online shopping is more expensive than manual shopping, its take more time to deliver the
products and they are facing problems while making online purchases.
KEY WORDS: Online shopping, Customer buying behavior, perception, gender discrimination.

INTRODUCTION technological innovations emerged in 1994: online

Online shopping or online retailing is a form of banking, the opening of an online pizza shop by Pizza
electronic commerce which allows consumers to Hut, Netscape's SSL v2 encryption standard for secure
directly buy goods or services from a seller over the data transfer, and Intershop’s first online shopping
Internet using a web browser. Alternative names are: system. Immediately after, Amazon.com launched its
e-shop, e-store, Internet shop, web-shop, web-store, online shopping site in 1995 and eBay was also
online store, and virtual store. An online shop evokes introduced in 1995.
the physical analogy of buying products or services at ONLINE SHOPPING IN INDIA
a bricks-and mortar retailer or shopping center; the India's e-commerce market grew at a staggering
process is called business-to-consumer (B2C) online 88 per cent in 2013 to $ 16 billion, riding on booming
shopping. In the case where a business buys from online retail trends and defying slower economic
another business, the process is called business-to- growth and spiraling inflation. The increasing Internet
business (B2B) online shopping. The largest of these penetration and availability of more payment options
online retailing corporations are eBay and boosted the e-commerce industry in 2013. E-
Amazon.com, both based in the United States. commerce business in India is expected to reach
The first World Wide Web server and browser, around $50-70 billion by 2020 on the back of a fast
created by Tim Berners-Lee in 1990, opened for growing internet-connected population and
commercial use in 1991. Thereafter, subsequent

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improvement in related infrastructure like payment and LITERATURE REVIEW

delivery systems. (DNA, 2014) Theory of Consumer Buying Behaviour
The products that are sold most are in the tech Process: Consumer decision process carries five
and fashion category, including mobile phones, ipads, stages, starting with Problem recognition and
accessories, MP3 players, digital cameras and following Information search, Evaluation of
jewellery, electronic gadgets, apparel, home and alternatives, Purchase decision and finally Post
kitchen appliances, lifestyle accessories like watches, Purchase behaviour. Problem recognition starts with
books, beauty products and perfuIndia's e-commerce the perception of need and moves towards information
market, which stood at $2.5 billion in 2009, reached search where consumer uses internal and external
$8.5 billion in 2012 and rose 88 per cent to touch $16 sources to analyse given information and use that
billion in 2013. The survey estimates the country's e- information in the next step of evaluation of
commerce market to reach $56 billion by 2023, driven alternatives. While evaluating alternatives one
by rising online retail. This growth is because of assessing values of the products by giving weights.
aggressive online discounts, rising fuel prices and After evaluation of alternatives consumers move
availability of abundant online options. Mumbai towards purchase decision where they may encounter
topped the list of online shoppers followed by Delhi, three possibilities, from whom to buy, when to buy
while Kolkata ranked third. The age-wise analysis and do not buy. Once they have actually made the
revealed that 35 per cent of online shoppers are aged purchase now it comes to Post purchase behaviour,
between 18 years and 25 years, 55 per cent between 26 whether they are satisfied or dissatisfied with the
years and 35 years, 8 per cent in the age group of 36- purchase. (Kotler, 2012)
45 years, while only 2 per cent are in the age group of TAM is basically information system theory
45-60 years. Besides, 65 per cent of online shoppers that covers how a user accepts and uses a technology.
are male while 35 per cent are female. To make the The model deals with the acceptance of information
most of increasing online shopping trends, more technology. The external factors that influence users to
companies are collaborating with daily deal and make a decision are- Perceived Usefulness (PU) and
discount sites, the survey pointed out. Perceived Ease of Use (PEOU).The degree to which a
India has Internet base of around 150 million as person believes that using a particular system would
of August, 2013which is close to 10 per cent of enhance his or her job performance is Perceived
Internet penetration in India throws a very big Usefulness (PU) and Perceived Ease of Use (PEOU) is
opportunity for online retailers to grow and expand as the degree to which a person believes that using a
future of Internet seems very bright. (Economictimes, particular system would be free from effort. The main
2014) The size of India's ecommerce market in 2013 purpose of the TAM is to explain how a user accepts a
was around $13 billion, according to a joint report of specific technology. TAM has been applied to measure
KPMG and Internet and Mobile Association of India the impact of perceived web-security, perceived
(IAMAI). The online travel segment contributed over privacy, perceived usefulness and perceived ease of
70 percent of the total consumer e-commerce use on online transaction intentions (Teck, 2002).
transactions last year. (DNA, 2014) Those who are TAM was applied to assess owners/managers intention
reluctant to shop online cited reasons like preference to to adopt web-based supply chain management
research products and services online (30 per cent), (Choong, 2003). (Chuttur, 2009)
finding delivery costs too high (20), fear of sharing Soonyong Bae, Taesik Lee (2010) they
personal financial information online (25) and lack of investigates the effect of online consumer reviews on
trust on whether products would be delivered in good consumer’s purchase intention. In particular, they
condition (15), while 10 per cent do not have a credit examine whether there are gender differences in
or debit card. (Economictimes, 2014) The Nielsen responding to online consumer reviews. The results
Global Online Shopping Report shows more than a show that the effect of online consumer reviews on
quarter indicate they spend upwards of 11 percent of purchase intention is stronger for females than males.
their monthly shopping expenditure on online The negativity effect, that consumers are influenced by
purchases.71 percent Indians trust recommendations a negative review more than by a positive review, is
from family when making an online purchase decision, also found to be more evident for females. These
followed by recommendations from friends at 64 findings have practical implications for online sellers
percent and online product reviews at 29 percent. Half to guide them to effectively use online consumer
the Indian consumers (50%) use social media sites to reviews to engage females in online shopping.
help them make online purchase decisions. Online Isaac J. Gabriel (2007) studied online
reviews and opinions are most important for Indians consumers’ risk perceptions and will reveal a
when buying Consumer Electronics (57%), Software “cognitive map” of their attitudes and perceptions to
(50%), and a Car (47%). (Indiasocial, 2014)mes, baby online risks. It was accomplished by composing a
products witnessed significant upward movement.

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master list of online hazards and activities, measuring shopping and developed a causal model that explains
current level of perceived risk, desired level of risk, how this perception affects their online-shopping
and desired level of regulation associated with them, behavior. Research found that factors like, trust,
composing a master list of online risk characteristics, customer service, customers’ income, price of products
determining online risk dimensions, and revealing or services and security are more important to
position of each online hazard or activity in the factor encourage people to purchase online the computer
space diagram. A factor space diagram captures a related products and services. In other side factors like
graphical representation of the results of the factor product customization and price of product were not
analysis. This study is still in progress and results are much effective on purchasing behavior of the
not available yet. respondents. So high level of security in online
Guda Van Noort, M.A., Peter Kerkhof, Ph.D marketing of computer related products and services
and Bob M. Fennis, Ph.D. (2007) in two experiments, has this potential to growth more and more to
the impact of shopping context on consumers’ risk encourage people to reduce the time and cost of
perceptions and regulatory focus was examined. They transaction. Most important concern regarding to
predicted that individuals perceive an online (vs. online shopping is the security of transactions. The
conventional) shopping environment’s more risky and study intends to explore the understanding of
that an online shopping environment, by its risky consumer behavior regarding to the direct and indirect
nature, primes a prevention focus. The findings in influences of the perceptions of online shopping on
Study 1 demonstrate these effects by using self-report consumer behavior. Based on our analysis first, a
measures for risk perception and prevention focus. In factor analysis was conducted on the student’s
Study 2, replicated these findings and demonstrated perception of 13 items, and three factors,
that the effect of an online shopping environment “convenience, anxiety regarding security, and “poor
carries over to behavior in a domain unrelated to navigation”, were extracted. A model was created
shopping. reflecting the direct influence of these three
Seyed Rajab Nikhashem, Farzana Yasmin, “perception”-related factors on behavior or their
Ahsanul Haque. (2011) Studied that investigated indirect influence through consumers’ attitudes.
peoples‟ perception of online buying tickets (e- Kanwal Gurleen. (2012) focuses on the
ticketing) as well as why some people use this facility understanding of demographic profiles of adopters and
while some who do not use it stick to the traditional non-adopters of online shopping. For this purpose the
way to fulfill their needs. In addition, factors such as data from 400 respondents was collected in the form of
what inform peoples‟ eagerness and unwillingness to questionnaires. The study has been conducted in 3
use internet facilities are also examined. The outcome cities of Punjab, a sample of urban respondents were
of this research showed a comprehensively integrated selected from the Jalandhar, Ludhiana and Amritsar
framework that can be utilized by policy makers and The paper also analyses the various reasons for
business enterprises to understand the dynamic adoption and non-adoption of online shopping.
relationships among dimensions of perceived risk, user RESEARCH METHODOLOGY AND
trustworthiness, usefulness, familiarity and confidence. OBJECTIVES
Also, this study considered how price perception and Research methodology:
internet security can be utilized to understand the Here descriptive research design was used to measure
consumers‟ perception. the involvement level. Convenient sampling technique
Yu-Je Lee, Ching-Lin Huang, Ching-Yaw was used for selecting respondents. The data were
Chen The purpose of this study is to use structural collected through structured questionnaire and sample
equation modeling (SEM) to explore the influence of size taken as 150 respondents from varachha region
online bookstore consumers’ perception on their Surat. For the analysis of data various tools like
purchase intention. Through literature review, four tabulation, chi-square test, frequency distribution,
constructs were used to establish a causal relationship cross tabs, and charts were used with help of SPSS
between perception of online shopping and consumers’ software.
purchase intention. Results of this study show that Research objectives:
product perception, shopping experience, and service  To know customer perception towards online
quality have positive and significant influence on shopping.
consumers’ purchase intention, but perceived risk has  To discriminate analysis of perception on
negative influence on consumers’ purchase intention, gender basis.
and shopping experience is most important.  To identify customer online shopping
Ramin Azadavar, Darush shahbazi, and behavior.
Mohammad Eghbali Teimouri. (2011) examined the
factors influencing consumers’ perception of online

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 __________|EPRA International Journal of Research and Development (IJRD) |ISSN:2455-7838 (Online) |SJIF Impact Factor: 6.093|_______________

GENDER
MOST PURCHASE ITEMS MALE FEMALE TOTAL
Home 45 20 65
Office /College 30 18 48
Cyber Café 29 4 33
Others 3 1 4
Total 107 43 150
Source: Primary Data
Above table gives explanation about demographic profile of customers like monthly income. Gender, age,
occupation.
DEMOGRAPHIC CHARACTERISTICS
Below 10000 35
Income 10000 to 25000 53
(Family/ monthly) 25000 to 35000 40
35000 to 45000 14
Above 45000 8
Total 150
Male 113
Gender Female 37
Total 150
Below 15 2
15 to 30 123
Age 30 to 45 21
45 t0 60 4
Total 150
Student 75
House wife 11
Occupation business 41
other 23
Total 150
Source: Primary Data
Most of the customer are accessing internet from their home (65/150), office/college (48/150)
ANALYSIS OF MULTIPLE RESPONSE Gender
Male Female Total
Mostly purchase through online Clothes 43 10 53
Electronics items 58 15 73
Jewelries 30 16 46
Accessories 57 15 72
Other 14 2 16
Total 202 58 260
Main problems that faced while Pages took too long to load that I gave up 30 7 37
making online shopping Site was so confusing that I could not find 44 12 56
the product
Desired product was not available 29 8 37
System logged in is compulsory 33 9 42
Tried & failed to contact customer service 39 5 44
Wrong/ Bad product arrived & could not 48 12 60
return
Others reasons 1 0 1
Total 224 53 277
Source: Primary Data

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Gender
Perception Related Questions Male Female Total
Online shopping 78 25 103
Manual Shopping 35 12 47
Better Option For Shopping Total 113 37 150
Satisfaction With Online Shopping Yes 73 23 96
No 18 7 25
Can't Say 22 7 29
Total 113 37 150
I am worried about giving my 32 7 39
credit card no
I like to see the product in 35 18 53
personal before I buy it
The process is expensive due 24 5 29
to access
Most Alarming Barriers For Online Shopping Insecurity& Net connectivity 22 7 29
trouble
Total 113 37 150
Online Shopping Is Expensive No 63 23 8
Compare To Manual Shopping Yes 50 14 64
Total 1113 37 150
Online Shopping Delivery Of Yes 30 15 45
Goods Is More Time Consuming No 83 22 105
Total 113 37 150
Face Any Problems While Making No 35 18 53
Online Purchase Yes 78 19 97
Total 113 37 150
Impact On Your Online Shopping Stopped shopping online 25 9 34
Behavior Stopped shopping online but 40 13 53
only for product or category
of product
It had no impact what so ever 45 14 59
Others please specify 3 1 4
Total 113 37 15
Amount Of Monthly Salary Spent 05% 49 15 64
On Online Shopping 08% 38 17 55
10% 26 5 31
Total 113 37 150
Source: Primary Data

CONCLUSION REFERENCE
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