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CUSTOMER PERCEPTION TOWARDS ONLINE SHOPPING

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International Journal of Management, Technology And Engineering ISSN NO : 2249-7455

CUSTOMER PERCEPTION TOWARDS ONLINE SHOPPING

Pooja julka ,research scholar,I.k.G.P.T.U kapurthala,INDIA,poojajulka79@gmail.com

Dr.Inderpal singh Arora,Associate Professor,KCLIMT JALANDHAR ,INDIA,Arora_inderpal@yahoo.co.in

Abstract
Online shopping or e-shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the
internet using a web browser. The emergence of the internet has created opportunities for firms to stay competitive by providing customers
with a convenient, faster and cheaper way to make purchases. According to a study more than 627 million people used internet for on line
shopping of books, airline tickets/reservations clothing/shoes, videos/games and other electronic products. So the present paper is an attempt to
explore the factors influencing consumers to buy online. Primary data was collected from 200 respondents using random sampling technique
with the help of structured questionnaire. Results of factor analysis reveals that Product Information, Online Payment, Convenience and
Variety, Consumer Attitude, Easy Accessibility, Flexibility, Price, Consciousness and Challenges of online shopping are the main factors which
influence the consumers perception to purchase on line.

Keywords – consumer attitude,online payment,online shopping,percxeption,product information,price consciousness.

1.0 Introduction
Shopping is part of every day’s life. Some get the necessities from shopping, others get something more. It is viewed as a way to release the stress, a
way to complete some desire in the mind, or a way to add some flavor to the mechanical way of life. Shopping is probably one of the oldest terms used
to talk about what we have all been doing over the years. Then again, in ancient times, the terms that would have been used would be ‘trading’ or
‘bartering’ and probably even ‘market.’ So what has traditional shopping have to offer now that the internet has opened up a wider and more enticing
market to the current consumers (https://sites.google.com/site/jeetthakkarseproject/e-commerce).
In general, there are two types of shopping: traditional shopping and on-line shopping. Both of them have some merits and shortages
respectively. Nowadays, more and more people would go shopping via Internet, thanks to the prevalence of the computer. Clicking in one word,
thousands of items will come out on the screen based on choice. No need to wade across a long road and nudge through hustling crowds to get a pair of
fancy shoes. Just a click on the key board, make the choice and the goods will be delivered, right on the spot. Online shopping has become an

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increasingly common staple of life in the 21st century. Its popularity can be credited to the fact that convenience is highly valued in our world today.
Shopping online offers the opportunity to buy anything and everything you need while on a flight or getting ready for bed.
Internet marketing is conceptually different from other marketing channels and internet promotes a one to one communication between the
seller and the end user. Today, business internet marketing is the fastest growing segment of online commerce interaction between the consumer and the
seller (Shanthi and Kannaiah 2015).
Statistics indicate the rapid growth in the field of virtual shopping. With this emerging field of shopping the interest of marketers is also
increasing in studying what actually motivates consumers to shop online. Fierce competitions among online sellers have forced them to gain the
competitive edge in the field of virtual shopping. In order to gain competitive edge in the market, marketers need to know the consumer behavior in the
field of online shopping. It is important to analyze and identify the factors which influence consumers to shop online in order to capture the demands of
consumers Other than the factors which influence consumers to shop online, online shopper’s demography in terms of Age, gender, income and
education is equally important to define their strategies accordingly (You et.al., 2014).
1.1 Online Shopping
Online shopping or e-shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over
the internet using a web browser. Alternative names are e-web-store, e-shop, e-store, internet shop, web-shop, web-store, online sort, virtual store etc.
Simply put, it is any form of sale that is done over the internet. Shopping has certainly gotten a new definition since the arrival of the internet. Because
of what the internet has to offer, that is, person or company from any part of the world who is able to post and sell goods on the via a website is able to
sell. What’s more, any consumer does not have to worry about having to find means to exchange monetary paper because not just online banking is
made the consumer is given the option to pay through different payment methods (https://www.quora.com/What-is-difference-between-e-Commerce-
and-online-shopping).
These days, it is even easier to find the most difficult of all products, by easily typing in the product or item that a customer is looking for. No
worry about the location because logistic companies are also joining the bandwagon, so to speak, and helps in making sure that their products would be
available to any and all destinations in the world. In fact, there are more and more advantages and benefits to online shopping and why people choose to
do this type of shopping over traditional shopping (http://www.differencebetween.net/business/product-services/differences-between-online-and-
traditional-shopping/).

Globally more than 627 million people have done online shopping so far, World’s biggest online shoppers include Germans and British. Books, airline
tickets/reservations clothing/shoes, videos/games and other electronic products are the most popular items purchased on the internet. The emergence of
the internet has created opportunities for firms to stay competitive by providing customers with a convenient, faster and cheaper way to make purchases
(ACNielsen Report on Global Consumer Attitudes towards Online Shopping, 2007.

1.2 Specific features of online shopping

Online shopping consist of various features which also highlight the benefits from e – shopping. Thus, the features are described as:
 24 X 7 Service available.
 Easy Access with multiple devices.
 Single click to navigate multiple sites
 Comparison can be made in real time.
 Flexible Payment methods.

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 Cash back offer.

 Casual shopping.
 Availability of much more variety.
 Reliable information provided.
 Less time consumption.
 Convenient prices.
 Give feedback about the product.
Research methodology means an outline of a research. Current chapter presents design of study followed the selection of the research
instrument used, sample choice, collection of data, response rate etc. The quantitative methods employed to examine the collected data have also been
stated in the current chapter.

2.0 Literature review

Bellman et. al. (1999) investigated various predictors for whether an individual will purchase online. These authors concluded that demographic
variables, such as income, education and age, have a modest impact on the decision of whether to buy online, whereas the most important determinant
of online shopping was previous behaviour, such as earlier online purchases.
Venkatesh (2000) reported that perceived convenience offered by Internet Vendors has a positive impact on consumers' attitude towards online
shopping, as they perceive Internet as a medium that enhances the outcome of their shopping experience in an easy way. Online shopping holds a great
potential for youth marketers.
Benedict et al (2001) in his study on perceptions towards online shopping reveals that perceptions toward online shopping and intention to
shop online are not only affected by ease of use, usefulness, and enjoyment, but also by external factors like consumer traits, situational factors, product
characteristics, previous online shopping experiences, and trust in online shopping.
Bhattacherjee (2001) stated that satisfied users are more likely to continue the IS use. Thus, we point that adoption and continuance are
connected to each other through several mediating and moderating factors such as trust and satisfaction. Vrechopoulos et al. (2001) found that younger
consumers searched for more products online and they were more likely to agree that online shopping was more convenient.
ACNielsen (2007) explains the relationship between consumer behavior and marketing strategy. He states that strategy is about increasing the
probability and frequency of buyer behavior. Requirements for succeeding in doing this are to know the customer and understand the consumer's needs
and wants.
Guda et. al (2007) in two experiments, the impact of shopping context on consumers’ risk perceptions and regulatory focus was examined.
They predicted that individuals perceive an online (vs. conventional) shopping environment’s more risky and that an online shopping environment, by
its risky nature, primes a prevention focus.
Vaitheesewaran (2013) examined the convenience of online shopping “With product getting standardized, specifications getting fixed and the
concept of service getting eroded, the post sale responsibility of the retailer has come down drastically. Hence customers go to stores to explore the
product physically detail but by online at a cheaper rate. Heavy discounts of e-commerce firms are possible because of their no warehouse model.”
Bhatt Ashish (2014) found that that information; perceived usefulness, perceived enjoyment and security/privacy are the five dominant factors
which influence consumer perceptions on Online purchasing.
Thakur Sonal and Aurora Rajinder (2015) found that Internet is one of the ways which is changing the consumers shopping and buying
behaviour. Mostly consumers are using the internet to buy the product and to compare prices and features of product therefore; e-companies should
understand the internet users’ perception towards the online shopping. The prospect of online marketing is increasing in India with the increasing
internet literacy.

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3.1 Objectives of the Study

To identify the factors influencing consumers to buy online.

3.2 Sources of Data Collection

For final data collection, Primary sources was used.
3.2.1 Primary Source
For collecting primary data, a well structured pretested questionnaire was used. The questionnaire comprised of two parts. Part A deals with
personal information. Part B deals with on line shopping scale created were used in the current study.
3.3 Universe of the Study
Cosmos of current research included those persons from district Jalandhar who have used online shopping website at least once in their life.
3.4 Sample of the Study
To achieve objectives, amended questionnaire were distributed to 200 respondents. Data was collected through convenience sampling
technique. Only those customers were selected who had used websites at least once in their life. Table 1 shows the sampled population.
3.5 Reliability of the Measuring Instrument
3.5.1 Reliability of the Measuring Instrument
Consistency can be measured with the help of results of study and if the results of the study can be repeated, then scale is considered to be
reliable (Collis and Hussey, 2003). Internal consistency method to examine reliability has been used in the present study.
 Internal Consistency Method
Internal consistency is the extent of an instrument with its different items within that instrument to measure the same variable. The value of
Alpha should range from 0 to 1 (Sekaran, 2003). Results for reliability have been shown in their respective chapters.
3.6 Analytical Techniques Employed in the Study
Following quantitative techniques were used in the current research to analyze the collected data:
3.6.1 Descriptive Analysis: Frequency and percentage were utilized to examine the demographic variables.
3.6.2 Factor Analysis: It is a data reduction tool. Factors analysis studies relationship among variables and reduces their number into fewer
factors which explain the original data (Nargundkar, 2012). The general purpose of factor analysis is to find out a way in summarizing the information
contained in a number of original variables into a smaller set of new, composite dimensions with a minimum loss of information. In the present study,
the factor analysis had been used to study the factors affecting the choice of online shopping.
4.1 Demographic Profile of Respondents
Table 1 presents the demographic profile of sampled population. It can be seen from Table 1 that equal male respondents participated in survey (50 %)
as female (50 %) respondents.
Furthermore, sample population formed the majority (38 % and 38 %) in the age group of less than 20 years and 20-30 years respectively,
followed by 30-40 years (14%). Furthermore, respondents falling in the age category of above 40 are just 10%.
With regard to marital status of the sample respondents from Table 1 that almost 64% respondents are married and 36% are unmarried.

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As far as respondents’ occupation is concerned, then Table 1explains that major portion of the respondents come from businessmen (28%),
professionals and students (26% and 25% respectively) and house wives (21%).
As far as education level is concerned, 30% of the respondents are under graduates followed by upto 10+2 and post graduate (28% and 28%
respectively). The next largest category comprised of those respondents who are upto 10 (14%).
As per income categorization, Table 1 shows that 44% respondents are falling in the income category of Rs.10000-30000 followed by 28%
who belongs to income category of Rs. less than 10000. Though just 20% are falling in the income category of less than Rs. 30000-50000 yet 8% are
falling in the income category of more than Rs.50000 income group.
With regard to the place of residence 50% respondents belong to semi-urban area, followed by 31 % respondents belong to urban area and 18%
respondents belong to rural area.
Table 1: Demographic Profile of Respondents

Frequency Percent
Male 100 50.0
Gender Female 100 50.0

Total 200 100.0

Less than 20 76 38.0
20-30 76 38.0
30-40 28 14.0
Age (Yrs)
Above 40 20 10.0
Total 200 100.0
Married 128 64.0
Single 72 36.0
Marital Status Total 200 100.0
Upto 10 28 14.0
Upto 12 56 28.0
Education Level
UG 60 30.0
PG 56 28.0
Total 200 100.0

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Professional 52 26.0
Occupation Businessman 56 28.0
House wife 42 21.0
Students 50 25.0
Total 200 100.0
Less than 10000 56 28.0
Family 10000-30000 88 44.0
Monthly Income(Rs.) 30000-50000 40 20.0
More than Rs 50000 16 8.0
Total 200 100.0
Urban 64 32.0
Semi urban 100 50.0
Place of residence
Rural 36 18.0
Total 200 100.0
Source: Compiled through survey

4.3 Factors affecting the Choice online shopping

4.3.1 Reliability Analysis for online shopping

Cronbach alpha was calculated and the initial value of reliability was 0.723 which shown in Table 2 (Sekaran, 2000). Further 32 items were

used to carry factor analysis.

Table 2: Reliability Analysis

Cronbach's Alpha No. of Items

0.723 32
Source: Calculated through SPSS

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According to Hair et al. (1998), “It is necessary before conducting Exploratory Factor Analysis (EFA) to make sure that sufficient variance
exists within the variables”.
4.3.2 KMO and Bartlett's Test
The Bartlett test of sphericity and KMO test were applied to examine the correlation among variables and adequacy of sample. Kaiser (1974)
recommended that “The value of KMO should be greater than 0.5 is acceptable”. The findings of Bartlett test of sphericity and KMO have been shown
in Table 3. The results of Bartlett’s Test of Sphericity and KMO show that data is fit to run factor analysis.

Table 3: KMO and Bartlett's Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.777

Bartlett's Test of Sphericity Sig. 0.000

Source: Calculate through SPSS

4.3.3 Principal Component Analysis

Further, Principal Component Analysis of factor analysis was applied to reduce the 32 items into a fix number of factors and Varimax Rotation
method has also been applied to rotate the factors in the current study.
4.3.4 Total Variance Explained
Further, Malhotra (2006) recommended that the minimum 50% of the variance should be accounted for explaining the variation of factors. In the
current study, eight factors were accounted for 69.330% variation in the data (Table 4). While applying factor analysis, factor loading below 4.5 were ignored
for the purpose of further analysis (Hair et al., 1998). After running of factor analysis, 32 items were reduced to 8 factors. The Varimax Rotated eight factor
satisfactory solutions so derived is shown in the Table 5.

Table 4: Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 4.405 12.237 12.237 4.405 12.237 12.237 4.228 11.744 11.744
2 3.948 10.966 23.203 3.948 10.966 23.203 3.803 10.565 22.308
3 3.818 10.606 33.809 3.818 10.606 33.809 3.801 10.557 32.865
4 3.708 10.299 44.108 3.708 10.299 44.108 3.757 10.435 43.300

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5 2.521 7.002 51.110 2.521 7.002 51.110 2.609 7.247 50.547

6 2.391 6.641 57.751 2.391 6.641 57.751 2.391 6.640 57.188
7 2.160 6.000 63.750 2.160 6.000 63.750 2.190 6.083 63.270
8 2.009 5.579 69.330 2.009 5.579 69.330 2.181 6.059 69.330
Extraction Method: Principal Component Analysis.
Source: Calculated through SPSS

The summarized results of factor analysis have been shown in Table 5

Sr. No. Facto Eigen Cronbach Loadi Statements Included in the Factor
r Value Alpha ng
Name
(Vari
ance
Expla
ined
%)
F1 Produ 4.405 0.913 0.869The information given about the products and services on the internet is
ct sufficient.
Infor 0.858 The description of products shown on the web sites are very accurate
matio
n
(11.74
4)
F2 Online 3.948 0.880 0.853 could afford to pay a monthly fee to an Internet service provider in order to
Payme shop online
nt 0.839 I prefer to purchase online due to easement of online buying procedures.

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(10.56 0.827 It is easier to pay online through credit card or direct bank transfer Table 5:
5)
Summary
F3 Conve 3.318 0.876 0.859 Shopping online would give me greater control over my shopping
nience of Factors
0.814 Selection of goods available on the internet is very broad
and for Online
0.810 It is easier to buy online rather than going on to shop at store
Variet
0.801 The information given about the products and services on the internet is Shopping
y
(10.55 sufficient
7) 0.790 Shopping Online would allow me to get better prices when shopping
0.782 Online shopping is as secure as traditional shopping
0.770 Shopping online gives you larger options to choose from
0.691 Shopping online saves my time and money as I don’t have to go through
heavy traffic besides saving fuel
F4 Consu 3.708 0.877 0.841 People who shop online have greater prestige than those who do not
mer 0.817 While shopping online, I hesitate to give my credit card number
Attitu
de 0.819 I prefer traditional/conventional shopping to online shopping
(10.43 0.811 Shopping Online allow me to have better item selection in my shopping
5)

0.811 Shopping Online allow me to have better item selection in my shopping

F5 Easy Accessibility 2.521 0.922 0. 949 It is a great advantage to be able to shop at any time of the day on the
(7.247 ) internet
0.949 Shopping Online allow me to have better item selection in my shopping
0.870 The fact that only those with a credit card or bank account can shop on
the internet is a drawback
F6 Flexibility (6.640) 2.391 0.866 0.904 Internet reduces the monetary costs of traditional shopping to a great
extent
0.891 I think shopping on the internet saves time
F7 Price 2.160 0.800 0.908 I prefer to purchase online due to heavy discounts available online

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Consciousness 0.904 The quality of products purchased online from trusted sites is very
(6.083) good and are available at economical prices
0.690 I cannot buy all the products on discount but some selected products
only.
0.660 I can read the reviews also before purchasing online which helps me
to select the right product at economical prices
F8 Challenges of online 2.009 0.804 0.878 I am a bit concerned about the security and privacy of my payments
shopping (6.059 ) Online
0.860 There are some shipping delays in getting the product.
0.857 I physically need to check the products before purchasing it
0.794 I do not use the credit card so I cannot often shop online
Source: Compiled from the results of SPSS

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4.3.6 Naming of Factors

Factor I: Product Information
Table 4.3.5 shows that the first dimension, ‘Product Information’, is comprised of two items relating to the
Product Information. It explained 11.744% variation in the data, with an Eigen value of 4.405. It contains two items namely
‘The information given about the products and services on the internet is sufficient (0.869)’, ‘The description of products
shown on the web sites are very accurate’ (0.858)’, Thus, Product Information is considered as the most important
dimension in online shopping. Therefore, Product Information should be simple and straightforward so that shopping
website should be easily navigated during purchase process. These findings are similar with the findings of Shanthi and
Desti Kannaiah (2015).

Factor II: Online Payment

The second dimension, ‘Online Payment’ explained 10.565% variation in the data, having eigen value of
3.948. It includes three items namely ‘could afford to pay a monthly fee to an Internet service provider in order to shop
online (0.853)’, ‘I prefer to purchase online due to easement of online buying procedures (0.839)’, ‘It is easier to pay
online through credit card or direct bank transfer (0.827)’. Several scholars Shanthi and Desti Kannaiah (2015) have
identified “Online Payment as one of the major criteria used by customers in evaluating online shopping websites”.

Factor III: Convenience and Variety

The third factor, ‘Convenience and Variety’ was responsible for 10.557% of variation, having eigen value of
3.818. As per Kanwal Gurleen, “Convenience and Variety has been recognized as an important factor when online
customers evaluate a online shopping web site”. It consists of eight items such as ‘Shopping online would give me
greater control over my shopping (0.859)’, Selection of goods available on the internet is very broad’, (0.814)’, ‘The
information given about the products and services on the internet is sufficient’, (0.801)’, ‘Shopping Online would
allow me to get better prices when shopping (0.790)’, ‘Online shopping is as secure as traditional shopping (0.782)’,
‘Shopping online gives you larger options to choose from (0.770)’, and Shopping online saves my time and money
as I don’t have to go through heavy traffic besides saving fuel saves my time and money as I don’t have to go
through heavy traffic besides saving fuel (0.691)’. According to Shanthi and Desti Kannaiah (2015), “Convenience
and Variety is a web-based customer support which requires special attention”. It shows that users find it easy to use
online modes of shopping because it provides the latest and reliable contents. Therefore, Convenience and Variety are
more reliable, accountable, adequate, faster and transparent in comparison to brick and mortar shopping malls. This
finding is consistent with findings of the study conducted by Kanwal Gurleen (2012).

Factor IV: Consumer Attitude

The fourth dimension ‘Consumer Attitude’ is a combination of four items. This dimension explains 10.435 of the
total variance and 3.708 eigen value. The items were like ‘People who shop online have greater prestige than those who do
not (0.847)’, ‘While shopping online, I hesitate to give my credit card number (0.817)’, ‘I prefer
traditional/conventional shopping to online shopping (0.819)’, and ‘Information Shopping Online allow me to have better
item selection in my shopping (0.811)’. This result is similar to the result of Shanthi and Desti Kannaiah (2015). Factor
V: Easy Accessibility
The fifth dimension, ‘Easy Accessibility’ was responsible for 7.247% variation, with an eigen value of 2.521.
It includes three items such as ‘It is a great advantage to be able to shop at any time of the day on the internet (0.949)’,
‘Shopping Online allow me to have better item selection in my shopping (0.949)’, and The fact that only those with a
credit card or bank account can shop on the internet is a drawback (0.870)’. This finding is consistent with findings of
the study conducted by Kanwal Gurleen (2012).

Factor VI: Flexibility

The sixth dimension, ‘Flexibility’, is collected of two items. It explained 6.640 of the total variance with
2.391 eigen value. It carried two items ‘Internet reduces the monetary costs of traditional shopping to a great extent
(0.904)’, and I think shopping on the internet saves time (0.891)’. Therefore queries of customers should be settled
quickly to provide quick service to the customers. Moreover, customers will shift to other online shopping websites in

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case of absence of settlement of queries. This finding is consistent with findings of the study conducted by Kanwal
Gurleen (2012) and Vaghela, Pratiksinh (2014).

Factor VII: Price Consciousness

The seventh factor, ‘Price Consciousness’ comprised of four items and elucidated 6.083% of the variance in the
data, having Eigen value of 2.160. This dimension includes the items like ‘I prefer to purchase online due to heavy
discounts available online (0.908)’, ‘The quality of products purchased online from trusted sites is very good and are
available at economical prices (0.904)’, ‘I cannot buy all the products on discount but some selected products only,
(0.690)’ and I can read the reviews also before purchasing online which helps me to select the right product at
economical prices, (0.660). This finding is consistent with findings of the study conducted by Kanwal Gurleen
(2012) and Vaghela, Pratiksinh (2014)
Factor VIII: Challenges of online Shopping
The eighth dimension, ‘Challenges of online Shopping’, consisted of four items with 6.059 of the total variance
and 2.009 eigen value, emphasized the function system availability, either by staff of shopping website or with technical
support. It includes statements like ‘I am a bit concerned about the security and privacy of my payments online (.878)’,
‘There are some shipping delays in getting the product. (0.860)’ , I physically need to check the products before
purchasing it (0.857), and ‘I do not use the credit card so I cannot often shop online (0.794)’. This finding is consistent
with findings of the study conducted by Kanwal Gurleen (2012) and Vaghela, Pratiksinh (2014).

5.0 Conclusion and implications

Results of factor analysis showed that in online shopping Product Information, Online Payment,
Convenience and Variety, Consumer Attitude, Easy Accessibility, Flexibility, Price, Consciousness and Challenges
of online shopping have been identified as important factors. So it can be concluded that there are many factors
which consumers keep in mind while purchasing on-line. So owners of websites should keep in mind these factors
to make their shopping websites more popular, and make their customer more satisfied resultant of which sales and
profitability can be improved.

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