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Attitude of consumers towards Online shopping

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 Attitude of Consumers towards Online Shopping
Mubashir Majid Baba Dr.Mushtaq Ahmad Siddiqi
Research Scholar,The Business School Associate Professor, The Business School
University of Kashmir University of Kashmir
Email id: mubashirbaba@rediffmail.com email id: mailmushtaq@kashmiruniversity.ac.in

ABSTRACT

Nowadays Consumers buy goods or services directly from a seller over the Internet. Online
Shopping is a form of Electronic commerce (E-commerce) that provides both the Organisations
and Consumers with many options to choose from. On one hand Consumers have access to wide
range of products and the comfort to shop from home while on the other hand Organisations can
cater to different markets at a very low cost. With the help of Internet whole World can revolve
around our finger tips. World has become a Global village. There has been an tremendous rise in
the number of internet users. Internet has revolutionized the outlook and mode of living. Various
technologies like smartphones, laptops, tablets have stimulated the Consumers to go for Online
shopping. There are many popular websites which the consumers prefer for their online
shopping. Infact many of the organizations are now investing a lot in order to make their
websites user-friendly.

The main objective of the present study is to identify key factors that influence online purchasing
behaviour of consumers in India and more specifically in Kashmir region. Both the primary and
secondary sources will be used. The Primary data will be collected through a Structured
Questionnaire.

Keywords: Online Shopping, Consumer behaviour, E-commerce, Internet

INTRODUCTION

Twenty first century is the age of science. It has revolutionalised the outlook and mode of living.
Wonderful Inventions are being made everyday. Internet has been one such invention. Internet
has a very important role to play in our daily life. With the help of Internet whole World can
revolve around our finger tips. World has become a Global village. In the meantime, Internet
shopping has become very famous nowadays. It provides consumer more information and
choices to compare product and price, more choice, convenience, easier to find anything online
(Butler and Peppard, 1998). Online shopping has been shown to provide more satisfaction to
modern consumers seeking convenience and speed (Yu and Wu, 2007). The process of online
shopping consists of five steps similar to those associated with traditional shopping behavior
(Liang and Lai 2000). First potential consumers recognize a need for some merchandise or
service, they go to the Internet and search for need-related information. However, rather than
searching actively, at times potential consumers are attracted by information about products or
services associated with the felt need. Consumers then evaluate various alternatives and choose
the one that best fits their criteria for meeting the felt need. After this,a transaction is conducted
and post-sales services provided. Online shopping attitude is related with consumers
psychological state in terms of making purchases on the Internet. One of the biggest advantages
of online shopping is that we can buy almost anything we could imagine without leaving our
home.
REVIEW OF LITERATURE
E-commerce is used to improve relationships with both business partners and customers
(Charles, 1998). Internet and electronic commerce were the two most significant developments
of information during 1990s . Consumers who purchase over the Internet have increased, as well
as there is increase in sales worldwide via electronic commerce. Innovation and electronic
commerce relationships have resulted in tremendous changes in market competition among
various industries (Blosch, 2000; Hamid & Kassim, 2004).
Selling and buying of goods and services on World Wide Web is Online shopping. Shahriar
Azizi and Masoud Javidani (2010) conducted a Descriptive Study to measure e-shopping
intentions in Iran.The sample taken were 120 people households in Tehran and the type of
sampling they used was Stratified sampling.They found that Intention is not affected by
perceived benefits and E-shopping intention has positive impact on attitude of consumers
towards online shopping in Iran.
Shergill and Chen (2005) worked on Consumers Attitudes towards Online Shopping in New
Zealand. The results revealed that security issue is the major reason of not shopping. Consumers
were also less satisfied with website design. Security of online users is important factor that stops
the willingness of online purchasers and higher the income, the more is attitude towards online
shopping (Sami Alsmadi,2002)
Lohse et al. [2000] conducted a study to explore the predictors of online purchasing behaviour. It
was found that the consumers are characterized by their wired lifestyle, and are time starved.
They suggested that customized information should be provided to the online shoppers who buy
standard or repeat items, which can lead to shoppers gaining a feeling of increased convenience,
and which in turn will allow them to make quick purchase decisions.
Consumers' attitude towards online shopping is a prominent factor affecting actual buying
behaviour. Jarvenpaa and Todd [1997] gave a model of attitudes and shopping intention towards
Internet shopping in general. In the model, there were many indicators that belonged to four
major categories; the shopping experience, the value of the product, the risk perceptions of
Internet retail shopping and the quality of service offered by the website. Vellido et al. [2000]
also proposed a model which had nine factors associated with users' perception of online
shopping. The risk perception of users was the main discriminator between people buying online
and people not buying online among those factors. Other discriminating factors were; control
over, and convenience of the shopping process, customer service, affordability of merchandise
and ease of use of the shopping site.
Factors influencing consumer to shop online
There are many factors that influence a consumer to shop online. Some of the prominent factors
are:
1. Covenience
It is very time consuming to search products in a traditional store but through online shopping
customers can easily search products without any delay. If it is easy to search the information
through online, we say it is convenient for us. The main reason that motivated consumers to shop
online was conveniences (Swaminathan et al., 1999).
2. Time Saving
It is one of the important factors of Online shopping. By shopping online time can be saved and
it can also reduce efforts of the customer. Time is saved with the help of online shopping during
the purchasing of goods and the time required to go to the traditional store also gets reduced
(Rohm and Swaminathan’s,2004).
 3. Website Design
One of the vital influencing factors of online shopping is website design. The perception of a
consumer largely depends on website design (Shergill & Chen,2005). Almost 100,000 on-line
shopper’s surveyed by (Reibstein, 2000) shows that web site design was rated as important factor
for online shopping.
4. Security
Security is also one of the important factor for e-commerce. Retail e-commerce would fail if
Internet users feel on lacking a great degree of confidence (Kesh et al., 2002). The most
important reason that buyers who didn’t shop online was because they were afraid to reveal
personal credit card information to retailers or over the internet (Rao, 2000).
RESEARCH MODEL:

Covenience

Website design M
Attitude of consumers
towards online
Security shopping

Time saving

Source: Sultan and Nasir, 2011

Objectives:
1. To study the attitude of customers towards online shopping.
2. To study the impact of demographic factors on the attitude of customers towards online
shopping.
METHODOLOGY
SAMPLE COVERAGE
This research is descriptive cum empirical in nature. Convenience sampling technique was used
in the study. The total sample for the study was 100. The sample population consisted of
students, teaching, non teaching staff from different Universities of Kashmir(Kashmir
University, Central University of Kashmir, Islamic University of Science and Technology) under
different age groups.
Gender, Age, Education and Frequency of Online shopping influence Internet use, sample in
terms of these demographical variables were considered.

DATA COLLECTION METHODS

Both the primary and secondary data collection methods were considered. The primary data was
collected through questionnaire. 92 Questionnaires were received from the total sample of 100.
Secondary data was taken from various Journals, websites, Research papers and Magazines.

TOOLS
The questionnaire was used to collect data. The questionnaire had two parts. First part was
related to demographic factors and comprised of four questions and second part consisted of
questions that measured consumers attitude towards online shopping. There were total 15 items
and 4 dimensions. The four dimensions were: Covenience, Time saving, Website design, and
Security. In convenience there were 4 items, website design had 5 items, time saving had 3 items
and security had 3 items. Likert point scale was used for each statement where 1 denoted
strongly agree,2 denoted agree,3 denoted Uncertain,4 denoted Disagree and 5 denoted Strongly
disagree.

DATA ANALYSIS AND RESULTS

Descriptive Statistics
The Statistical Package for the Social Science(SPSS) VERSION 16.0 was used to analyze the
data. The Gender, Education, Frequency of Online shopping and age wise classification, giving
an overview of the research sample is presented as follows:
Out of 92 respondents, 53 are male respondents (57.6%) and 39 are female respondents(42.4%).

Table 1: Gender-wise distribution

Frequency Percent Valid Percent Cumulative Percent

Valid Male 53 57.6 57.6 57.6

Female 39 42.4 42.4 100.0

Total 92 100.0 100.0

The Literacy wise distribution reveals that 22(23.9%) respondents are graduates, 52(56.5%)
respondents fall under Masters Category and 18(19.6%) respondents are doctorates.

Table 2:Education-wise distribution

Frequency Percent Valid Percent Cumulative Percent

Valid Bachelors 22 23.9 23.9 23.9

Masters 52 56.5 56.5 80.4

Doctorate 18 19.6 19.6 100.0

Total 92 100.0 100.0

Frequency of buying in a year was also measured. It revealed that 37 respondents make 1-5
times/year shopping,24 respondents make 6-10 times/year, 14 respondents make 11-15
times/year and 17 respondents make more than 16 times/year online shopping.

Table 3:Frequency-wise distribution

Frequency Percent Valid Percent Cumulative Percent

Valid 1-5 times/year 37 40.2 40.2 40.2

6-10 times/year 24 26.1 26.1 66.3

11-15 times/year 14 15.2 15.2 81.5

16-above times/year 17 18.5 18.5 100.0

Total 92 100.0 100.0

 Table 4:Age-wise distribution

Frequency Percent Valid Percent Cumulative Percent

Valid upto 20 years 12 13.0 13.0 13.0

20-40 years 74 80.4 80.4 93.5

40 onwards 6 6.5 6.5 100.0

Total 92 100.0 100.0

As shown in the above table, age group 20-40 was the largest group representing 80.4% of the
respondents, followed by 13% of respondents who belonged to the age group up to 20 years. On
the other hand, the smallest number of respondents (6.5%) was 40 onwards.

Means of various dimensions under study

For every individual item, mean was calculated and then finally the total mean of every
dimension was calculated in order to know the most important factor which effects consumer
buying through Online.
The total mean for factor Website design was found to be 1.88 which indicates that website
design strongly influences the attitude of customers.

Table 5: Website design

Website design
N Mean Std. Deviation
Website design-Item 1 92 1.84 0.72

Website design-Item 2 92 1.74 0.78

Website design-Item 3 92 2.16 0.84

Website design-Item 4 92 2.02 0.85

Website design-Item 5 92 1.66 0.70

Valid N (listwise) 92 1.88 0.78

The total mean for factor Convenience was found to be 2.04 which indicates that customer’s
attitude towards online buying is also strongly influenced by convenience.

Table 6:Convenience

Descriptive Statistics
Convenience N Mean Std. Deviation

Convenience-Item 1 92 2.20 0.92

Convenience-Item 2 92 2.05 0.78

Convenience-Item 3 92 1.74 0.78

Convenience-Item 4 92 2.15 0.97

Valid N (listwise) 92 2.04 0.86

The total mean for factor Time saving was found to be 2.28 and for security it was found to be
2.24. Out of all the factors the lowest mean was for website design(1.88) which indicates that
website design/features is the major factor that affects the consumer’s attitude towards online
buying. In other words, we can say web site design was rated as the most important factor for
online shopping.

Table 7: Time saving

Descriptive Statistics
Time saving N Mean Std. Deviation

Time saving-Item 1 92 2.18 .76

Time saving-Item 2 92 2.24 .86

Time saving-Item 3 92 2.40 .72

Valid N (listwise) 92 2.28 .68

 Table 8: security

Descriptive Statistics
Security N Mean Std. Deviation

Security-Item 1 92 2.60 0.95

Security-Item 2 92 2.58 0.87

Security-Item 3 92 1.55 0.70

Valid N (listwise) 92 2.24 0.84

Calculation of the Impact 0f Demographic Factors On Different Factors

under Study
In order to compare means of different factors with demographic factors t-test and Anova was
used. For gender t-test was used and for the demographic factors like age , education and
frequency of buying , one way Anova test was used.
The (p) significance value for convenience with education was found to be .055 which is more
than .05. Hence Education does not have any significant impact on convenience.

Table 9

Covenience with Education

covenience Sum of Squares df Mean Square F Sig.

Between Groups 1.819 2 .910 2.998 .055

Within Groups 27.004 89 .303

Total 28.823 91

The (p) significance value for convenience with age was found to be .522 which is more than
.05. Hence Age does not have any significant impact on convenience.
 Table 10:Covenience with Age

covenience Sum of Squares df Mean Square F Sig.

Between Groups .419 2 .209 .656 .522

Within Groups 28.404 89 .319

Total 28.823 91

The (p) significance value for convenience with frequency was found to be .991 which is more
than .05. Hence frequency does not have any significant impact on convenience.

Table 11:Covenience with Frequency

covenience Sum of Squares df Mean Square F Sig.

Between Groups .034 3 .011 .034 .991

Within Groups 28.789 88 .327

Total 28.823 91

The (p) significance value for website design with education was found to be .053 which is more
than .05. Hence education does not have any significant impact on website design.

Table 12:Website design with education

Website Design Sum of Squares df Mean Square F Sig.

Between Groups 1.432 2 .716 3.036 .053

Within Groups 20.987 89 .236

Total 22.419 91

The (p) significance value for website design with age was found to be .409 which is more than
.05. Hence age does not have any significant impact on website design.
 Table 13:Website design with age

Website Design Sum of Squares df Mean Square F Sig.

Between Groups .446 2 .223 .902 .409

Within Groups 21.973 89 .247

Total 22.419 91

The (p)significance value for website design with frequency was found to be .954 which is more
than .05. Hence frequency does not have any significant impact on website design.

Table 14:Website design with frequency

Website Design Sum of Squares df Mean Square F Sig.

Between Groups .084 3 .028 .110 .954

Within Groups 22.335 88 .254

Total 22.419 91

The (p) significance value for time saving with education was found to be .914 which is more
than .05. Hence education does not have any significant impact on time saving.

Table 15:Time saving with Education

Time_Saving Sum of Squares df Mean Square F Sig.

Between Groups .156 2 .078 .090 .914

Within Groups 76.868 89 .864

Total 77.024 91

The (p)significance value for time saving with age was found to be .633 which is more than .05.
Hence age does not have any significant impact on time saving.

Table 16:Time saving with age

Time Saving Sum of Squares df Mean Square F Sig.

Between Groups .787 2 .393 .459 .633

Within Groups 76.237 89 .857

Total 77.024 91
The (p) significance value for time saving with frequency was found to be .129 which is more
than .05. Hence frequency does not have any significant impact on time saving.

Table 17:Time saving with frequency

Time Saving Sum of Squares df Mean Square F Sig.

Between Groups 4.781 3 1.594 1.941 .129

Within Groups 72.243 88 .821

Total 77.024 91

The (p) significance value for security with education was found to be .621 which is more than
.05. Hence education does not have any significant impact on security.

Table 18:Security with education

Security Sum of Squares df Mean Square F Sig.

Between Groups .372 2 .186 .479 .621

Within Groups 34.540 89 .388

Total 34.912 91

The (p) significance value for security with age was found to be .838 which is more than .05.
Hence age does not have any significant impact on security.

Table 19:Security with age

Security Sum of Squares df Mean Square F Sig.

Between Groups .139 2 .069 .177 .838

Within Groups 34.773 89 .391

Total 34.912 91

The (p) significance value for security with frequency was found to be .484 which is more than
.05. Hence frequency does not have any significant impact on security.
 Table 20:Security with frequency

Security Sum of Squares df Mean Square F Sig.

Between Groups .954 3 .318 .824 .484

Within Groups 33.957 88 .386

Total 34.912 91

Table 21: Independent sample T-test (Gender)

Independent Samples Test

Levene's Test for

Equality of Variances t-test for Equality of Means

Sig. (2- Mean Std. Error

F Sig. t df tailed) Difference Difference

covenience Equal variances

1.629 .205 -.848 84 .399 -.14809 .17472
assumed

Website Design Equal variances

.081 .777 -.794 84 .429 -.11982 .15091
assumed

Time Saving Equal variances

2.211 .141 -.852 84 .397 -.24174 .28382
assumed

Security Equal variances

2.445 .122 -.065 84 .949 -.01201 .18602
assumed

Assuming equal variances, the p value in all the dimensions under study comes out to be more
than .05. Thereby, indicating that the gender has no impact on customer’s attitude towards the
online buying.

CONCLUSION AND SUGGESTIONS

It is necessary to understand consumers attitude towards online shopping, so as to make

improvements in the factors that influence consumers. If focus is given on such factors, there is
no doubt marketers will have competitive advantage over their rivals.The findings indicated that
among the four factors selected for this research the most influencing factor for online shoppers
is Website Design/Features, followed by convenience thirdly security. Results have also showed
that time saving is of important concern among online shoppers. The study also revealed that
demographic factors don’t influence the attitude of consumers towards online shopping.It is clear
from the results that customers really get influenced by the image of the website or we can say it
has a great impact on the attitude of customers towards online shopping. Companies should
create their websites that are more attractive. Websites should have enough information but
should not be overwhelming. Useless information should be avoided. Websites should be
designed in such a way that it is easy to compare products and services. Online stores should
offer a customer hassle-free process and easy language by creating a fast website. In order to
attract customers, online stores should design websites that are user friendly.

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