Study on Customer Perception Towards Online Shopping with Respective

Rural Area in Jalgaon District”.

Mr. Milind Kailas Teli. (Marketing 2019-2021)
Balaji Institute of Management and Human Resource Development
Sri Balaji University, Pune

Abstract:
This paper explores the behavior of rural people towards online shopping, as well as, we can
find out why they prefer online shopping or why not. Online shopping is the process of buying
goods and services from merchants who sell on the internet. As they sit in front of the screen,
shoppers can visit online stores from the comfort of their homes and shop. The main aim of this
research is to identify the variables affecting the attitude of consumers towards e-commerce
purchases through online shopping.. The study also purchase perception (product perception,
customers’ service and consumers’ risk) affect consumers’ attitude towards online shopping.
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. To analyze the online shopping satisfaction of rural customers,
the required data has been collected from 125 respondents. Simple average method, Factor
analysis, correlation and chi square analysis were used.

Keywords: Online Shopping, Factors Influencing, Rural Consumer Behavior, customer facing
issues etc.

Introduction:
E-commerce is the activity of buying and selling of good and services through online mode. The
ecommerce has transformed the way of business it can also be stated as commercial transaction
conducted online. So, whenever a person buys and sells something using internet that activity is
called e commerce. The models of e commerce can be classified on the basis of marketplace
model (like amazon, Flipkart, Snapdeal etc.) and standalone ecommerce (if we launch our own e
commerce today) In India traditional way of doing business which is changing into modern
business. As per expert research they forecast that in India the e-commerce business will cross
US$ 50 billion by 2019 and according to a research of “INDIA GOES DIGITAL” the e
commerce is expanded approx. Rs 53 crore on FY 2015 The apparel segment is contributing
second highest share that is 31% and electronic is leading with 47%. The ecommerce further has
its different types as all the services can apply to /different business done on internet. Basically,
the e commerce can be divided to B2B, B2C, C2B.all this type of e commerce maintains huge
network with different operators.

Once upon a time, the question was not where to advertise or how to influence consumers so
that they can purchase your product. Have you ever wondered why consumers/buyers purchase
something from a particular site? What kind of impacts those ecommerce buying decisions and
what motivate them to buy from the sites rather than retail stores? Online shopping in India: The
evolution and growth of internet has been the biggest happening of this century. Ecommerce in
 India has come a long way from a feeble beginning in the 19992000 to a period where one can
sell and find all sorts of stuff from a high-end product to a small daily use product online.
Most companies are using internet to represent their product range and services so that it is
accessible to the global market and to reach out to a larger customer base. Computers and the
internet have completely changed the way one handles day- to-day transactions; online shopping
is one of them.
The main objective of this research study is a customer of rural area don’ t has a trust on online
shopping. They think, if the different products come from the company then they will not come
to replace the product or deliver damage products then money will not refund or some of
customer think, they will not get a product or get empty box instant of the product. So, they do
not pay money before deliver the product. 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. To Study
provide information about The virtual marketing world has many factors in which some are of
foremost importance among these factors, trust is one of the most important factors prevailing
since its inception. mean focus on, how we can build trust among rural customers towards online
shopping. So rural customer go for the online shopping and increase the revenue of Ecommerce
platform.

Literature Review:
This literature review is the part of research that endeavours to fill the gap in the domain of
research. Review of literature Is the most essential part of the research work as it helps in the
knowing the gaps thereby getting a clear idea of one’ s own research. The present chapter is an
effort to bring the information about online shopping is known as E-shopping. It is the process
of buying and selling of good and services through internet.
Yoganandan and Baskar (2019): The objectives of the study are to study the buying behaviour
of consumer while purchasing the products as well as services through online, to study the
perception of consumers about online shopping and to identify the level of satisfaction towards
online shopping. This study has been conducted among the consumers of Erode District of
Tamilnadu, India. The convenience sampling method has been used to select the sample. The
Primary data has been collected from 150 responds by questionnaire. The collected data has
been analysed by percentage methods, chi-square and weighted average methods. The major
finding of the study is most of the respondents are mostly preferred to made payment by cash on
delivery. [1]
Raunaque, Zeeshan and Imam (2016) : This research will help in finding the impact of e-
market on customers’ purchasing patterns and how their security and privacy concerns about
online marketing influences their online buying behavior.In order to deal with the money and
trust concerns of the customers, several regulations have been implemented to satisfy customers
‘ needs which help in building trust of the customers on the online marketing. Due to
improvement in these policies customers feel free and secure to shop online and participate in
online purchasing process. Easy refund and return policies, money back guarantee schemes are a
few of important factors which help in improving the customers assurance and hence the
perception towards online marketing. [2]
Veghela (2014): The main aim of this research is to study the perception of the customers
towards online shopping and discriminate this perception gender vies. For this purpose, with
 help of convenient sampling method 150 respondents were selected and data were collected
through structured questionnaire. Here descriptive research design was used to measure the
involvement level. Convenient sampling technique was used for selecting respondents. 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, it take more time to deliver the products and they are
facing problems while making online purchases. [3]
Jusoh and Hai Ling (2012) :The study also investigate how socio-demographic (age, income
and occupation), pattern of online buying (types of goods, e-commerce experience and hours use
on internet) and purchase perception (product perception, customers’ service and consumers’
risk) affect consumers’ attitude towards online shopping. Convenience sampling method was
conducted in this study and the sample comparison of 100 respondents in Taman Tawas Permai,
Ipoh. Data were collected via self-administered questionnaire which contains 15 questions in
Part A (respondents’ background and their pattern of using internet and online buying), 34
questions in Part B (attitude towards online purchase) and 36 questions in Part C (purchase
perception towards online shopping). One-way ANOVA were used to assess the differences
between independent variable such as age, income, occupation and pattern of online buying
(type of goods) and dependant variable such as attitude towards online shopping. [4]
Makwana, Dattani and Badlani (2010): In this paper we try to see the drastic change that has
been foreseen in the field of e-shopping and the customer's preference towards e-shopping by
designing a self-closed ended questionnaire to collect the data. Conducted Research Type is
Exploratory and use sampling technics with the help of 100 students’ sample. Although online
shopping can be very convenient and beneficial there are also some potential problems that can
arise. Consumers have been seen to exhibit different buying behaviour’ s when shopping online
than when they are shopping in a physical store.[5]
Isaac J. Gabriel (2007): studied online consumers’ risk perceptions and will reveal a “cognitive
map” of their attitudes and perceptions to online risks. It was accomplished by composing a
master list of online hazards and activities, measuring current level of perceived risk, desired
level of risk, and desired level of regulation associated with them, composing a master list of
online risk characteristics, determining online risk dimensions, and revealing position of each.
[6]
online hazard or activity in the factor space diagram. A factor space diagram captures a
graphical representation of the results of the factor analysis. This study is still in progress and
results are not available yet.

Statement of The Problem:

The main aim of this research study is a customer of rural area don’ t has a trust on online
shopping. So, for that descriptive research design will be chosen for this study, targeting 100+
responded.

 What is the most preferred online shopping website?

 What are the factors influencing customers towards online shopping?
 What are factors that have the maximum impact on customer satisfaction of online
shopping?
Objectives:
 To find out the satisfaction level of the customer for online purchase.
  To know the specific reason for which customer purchase online shopping.
 To find out consumer satisfaction level for services provide by the online shopping.
 To find out consumer satisfaction level for services provide by the online shopping.
 To find out why rural customer does not prefer online shopping.

Research Methodology

Statement of The Problem:

The purpose of the study is to determine the online buying behavior of rural consumers in
Jalgaon district. The scope of this study is restricted to a quantitative analysis of the selected
internet users of rural parts of Jalgaon district.

 Product quality is the most common problem faced by rural customers who shop online
regularly. The quality of the product is often not up to the mark with what is presents in
the pictures. The checks on registration are poor and selling poor quality in the name of
brands which causes issue of fraudulent seller increment.
 Logistics is a mess. Another common issue faced in online shopping. Barring a few
websites, delivery and logistics is a major issue. Websites are becoming so casual about
the delivery quality of products. So many times, either the package is lost or damaged
while in transit. Customers are facing a troubled time with the tracking systems which do
not accurately locate the product. Often customers choose same day delivery by paying
few extra bucks only get their product delivered.
 Delivery time is not clear, consumers do not know when the product will be delivered.
Customer buy a product and the ecommerce businesses do not even state the time of
delivery. Many times, these orders take more time than expected to be delivered.
Payment preferences are limited. A lot of times, consumers do not know how to make
payment if the Cash on delivery they use are not available as an option. With online frauds
picking up stream, most consumers prefer paying cash on delivery as they are sceptical about
sharing their card details

Data Collection Method

 Primary Data- Primary data have been collected through structured questionnaire filled
by respondents both male and female, also took a personal interview who have language
barrier. The target audiences are students, professionals and self.
 Secondary Data- Secondary data have been collected through books, journals,
articles, past research papers and the summary of respondents has also been considered.
Research Design
The research design is defined by Fouche (2002) as “the plan or blueprint of the study”. This
research is Quantitative research which allows the researcher to gather information and do
an in-depth exploration of issues, and therefore follows a less structured format with many
respondents than qualitative methods.
Sampling
 Universe of the study: The target population of this research are rural areas includes
consumers at different levels, different age groups, and qualifications etc.
 Sampling method: - Random sampling method has been adopted. The target population
have filled the questionnaire (online & offline)
Analysis and Interpretation
Reliability Test

Scale all variable

Case Processing Summary

Reliability Statistics N %
Cases Valid 101 99.0 Cronbach's
Excludeda 1 1.0 Alpha N of Items
Total 102 100.0 .818 12
a. Listwise deletion based on all
variables in the procedure.

Interpretation:

Reliability is a measure of the stability or consistency of test scores. You can also
think of it as the ability for a test or research findings to be repeatable. Here N indicate that
total number of respondents. Out of that there are 101 are valid which is 99% and 1 were
excluded. In reliability statistics table “N of items” means total number of questions in the
questionnaire. And here we can check Cronbach’s Alpha value for reliable research. Here
value comes 0.818 which indicate that these is good. Because range of good is from 0.71 to
0.91. So, data is reliable for research.
Hypothesis: There is not significantly impacting on consumer online buying behaviors.
After conducting factor analysis, we got two factors Features and Security. But again, I
conducted regression analysis in the regression analysis these two factors are not significantly
impacting on consumer online buying behaviour. It means Null Hypothesis(H0) is accepted

Correlations
It is easier to Online shopping
buy online gives you larger
rather thanto options to
shop choose.
It is easier to buy online Pearson Correlation 1 .188
rather than going on to shop Sig. (2-tailed) .060
at store. N 101 101
Online shopping gives you Pearson Correlation .188 1
larger options to choose. Sig. (2-tailed) .060
N 101 101

Hypothesis: H1=There is significant relation between larger option given by online shopping
& preference of online shopping over offline shopping. It means null hypothesis rejected.
Off course there is relationship between these two variables but that is the creation it. Not very
strong relation.
 Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 31.441a 9 .000
Likelihood Ratio 30.453 9 .000
Linear-by-Linear Association 2.433 1 .119
N of Valid Cases 101
a. 8 cells (50.0%) have expected count less than 5. The minimum expected count is .11.

Hypothesis: H1=There is significant impact of " Right Product delivery " On the consumer
buying behaviour towards online shopping
significance value is 0.000 which is less than 0.05 then we can conclude that we reject null
hypothesis and accept alternate hypothesis
The chi –square test is applied for further discussion. The computed chi –square value is
(31.441) which is greater than its tabulate value at 5 per cent level of significance. Hence, there
is a significance impact of " Right Product delivery " On the consumer buying behaviour
towards online shopping.

Learning Outcome & Finding

• Customer satisfaction surveys (CSAT) score is come out 58.82%, Where satisfied
(37.6%) and strongly satisfied (21.8%) respondent out of 102.
• As per the criteria of age in offline shopping the age groups above 45 mostly prefer
offline shopping compared to other age group and with reference to online shopping
between the ages of 15 to 45 are more interested in online shopping.
• As per gender criteria there is a significance difference in consumer buying behaviour
between male consumer and female consumer in online shopping. Further the data
clearly indicates that a greater number of males are involved in online shopping than
female.
• With reference to the criteria of profession the trend of online shopping on the average
basis are more in relation with the students as well as professionals while other variables
are comparatively less effective in this segment.
• As per the income criteria the family income group above Rs. 45000/month are more
effective consumers in online shopping.
• The majority of respondent using flipkart for online shopping.
• The majority of respondent prefer to buy electronics products through online shopping.
• People have trust issues regarding the goods which are sold online which is the most
important discouraging factor for not buying online.
 • Most respondents prefer cash on delivery payment method, when product buy online.

Rural customer’s does not prefer online shopping reasons:

• To rural area delivery of goods is not available.
• Sometimes you will pay much higher price for a particular item.
• If you are using ATM card, then there will be a question about your bank account
security.
• Here is no guarantee that you will receive your goods on time. Shipping may be delayed.

Suggestions & Recommendations

 Online shopping is the new approach in shopping products. Mostly the online customers
are in the age group of 15- 35; others not having much awareness about online shopping.
The online traders should take necessary steps to create awareness among the public.
 The online trader must take maximum effort to offer the wide range of products with
affordable price because the price of the product plays a vital role in buying decision.
 To reach the all category of consumer the online trader should use different methods of
advertisement strategy. Almost all the customers prefer the cash on delivery mode to
make payment for their shopping but some of the products are not available in cash on
delivery option.
 The efficient marketing is predominantly influenced by efficient distribution system it
means products such ultimate consumer in the quickest time possible at minimum cost.
 Suitable structure of support prices for various farm commodities adjusted from time- to-
time. Adequate arrangement of agricultural produce on support price, if the price falls
below the level.

Companies need to promise through understandable language to the rural consumers and it is
needed to fasten the distribution services to rural areas which are far away from towns or cities.
Companies should think and compete with labelled products which are local made and develop
the interest in rural consumers’ by highlighting the manufacturing date and expire date.
Companies’ supervision is highly required wherever outdated products are selling, companies
should seize them. Moreover, companies should develop the brand trust in rural consumers.
For this they need to be in touch with rural consumers in either way of promoting their good to
rural consumers.

Conclusion
• They are also satisfied with the discounts and offers they get on various online sites such
as amazon, flipkart and myntra etc.
• You can never verify your purchased goods using your own hands. Here you must
depend on picture, videos and descriptions.
• Low price offered by online companies motivates the rural customers to buy online.
 • From this study, we came across various discouraging factors that influence customers
not to buy online: the lack of trust and the fear of being fooled is one of the most
discouraging factors that affects online sales in rural areas.
• Quality of product rural consumers feels that the product available on online platform
may be of inferior quality, as they don’t get chance to touch and feel the product.

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