A Study on Consumer Behaviour towards online shopping in India – A

Review of Literature
1
Sudip Basu, 2Dr. Md. Razi Anwar
1,2
Assistant Professor, School of Business & Management, NSHM Knowledge Campus,
Durgapur

Email Id: 1sudip.basu@nshm.com, 2md.anwar@nshm.com

Contact Number: 17718210388, 29703121503

Abstract:
Consumer behaviour is said to be an applied discipline as some decisions are significantly
affected by their behaviour or expected actions. Many companies have started using the
Internet with the aim of cutting marketing costs, thereby reducing the price of their products
and services in order to stay ahead in highly competitive markets. Companies also use the
Internet to convey, communicate and disseminate information, to sell the product, to take
feedback and also to conduct satisfaction surveys with customers. The growing use of
Internet in India provides a developing prospect for online shopping. If E-marketers know the
factors affecting online Indian behaviour, and the relationships between these factors and the
type of online buyers, then they can further develop their marketing strategies to convert
potential customers into active ones, while retaining existing online customers. Online
shopping is a rapidly growing e-commerce area. Online stores are usually available 24 hours
a day, and many consumers have internet access both at work and at home. A successful web
store is not just a good looking website with dynamic technical features, listed in many search
engines. This study is basically a study on the behaviour of the consumers towards online
shopping based on India only based on various literature reviews. This paper is descriptive in
nature and based on the previous studies some additional findings and suggestions are given.

Keywords: Consumer, Consumer Behaviour, Online shopping, Internet, E-market.

Introduction:
Online shopping consumer behaviour is also called E-shopping consumer buying behaviour.
Recently at present time online shopping is the new trend in India. Online shopping is
classified as a distance contract, which means that the seller and the consumer in lack of their
physical presence enter into a contract not by meeting in person but only in an electronic
way. Earlier days food, cloth and shelter were called as primary need but today one more
need is added in that is “internet”. Due to revolution in telecommunication sector internet has
changed the way consumers shop and buy goods and services. Both domestic companies as
well as MNC’s have started using the Internet with an objective of cutting marketing costs
and thereby reducing the price of their products in order to stay ahead in heavy competition.
India is one of the fastest-growing e-commerce markets worldwide, with millions of new
internet users taking advantage of cheap mobile connections to send mobile messages, watch
online videos, use mobile services, and of course, to shop. As of 2016, 26 % of the local
population was using the internet; almost ten times the audience size from a decade prior.
According to recent market research, mobile phone internet user penetration in India is
projected to reach 37.36 % of the population in 2021, representing a huge potential in terms
of digital and mobile buyer audience. Total internet audiences in India are estimated to
surpass 635 million online users in 2021.

Objectives of the Study:

1. To study the factors that effects consumer attitude towards online shopping in India.
2. To study the present status of online shopping in Indian consumers.
3. To study potential for development of online shopping in India.

Review of Literature:

In this study researcher has also decided to study consumer’s attitudes towards online
shopping and specifically studying the factors influencing consumers to shop online.
The population selected for the research is Gotland, and narrowed down to Gotland
University students, University cafeteria and Gotland Public library, the sample size
selected for this research is 100 and he had used convenience sampling technique.
This study is not only help retailers in Gotland to devise successful strategies for
online shoppers but it will also provide a base for similar studies in the felid of
consumer attitudes towards online shopping.[ CITATION Muh11 \l 1033 ]

The aim of this study was to investigate the factors that affect online purchasing
behaviour of two consumer groups from two different countries, United Kingdom and
Turkey. A questionnaire was designed online, since the research was an online
consumer behaviour study, online data collection methods were preferred. The result
of this study would contribute marketers who want to penetrate the market in Turkey
and in United Kingdom who is already present in the market and wants to maintain
the loyalty of their customers. It can also be a part of the study on international
consumer behaviour toward online shopping.[ CITATION SED11 \l 1033 ]
The purpose of this study was to examine and analyse the consumer’s buying
behavioural pattern towards online shopping (specially in case of flipkart.com users in
Lucknow city). Also tried to find out various attitudes of flipkart users of Lucknow
city towards the online shopping. The study result concluded that future of e-tailers in
India specially in cities looking very bright. Flipkart.com offering best prices, good
products and completely hassle-free shopping experience for our customers.
[ CITATION Pra14 \l 1033 ]

This paper studied on factors which online Indian buyers keep in mind while shopping
online. This research found that information; perceived usefulness, perceived
enjoyment and security or privacy are the five dominant factors which influence
consumer perceptions on Online purchasing.[ CITATION Ash14 \l 1033 ]

The objective of the study was to understand the online buying behaviour of
consumers in India. It had also made an attempt to get information about the scope of
improvement in online shopping website. The study was descriptive in nature and it
has made an attempt to understand the behaviour of Indian consumers towards online
shopping. Although statistical significance of various parameters had not been
examined but the generalized results obtained through data analysis has given clear
indication of increasing significance of online stores in the life of Indian people.
[ CITATION DrR14 \l 1033 ]
The primary objectives of this research was to study the perception of the customers
towards online shopping and also discriminate this perception gender wise. For this
with help of convenient sampling method 150 respondent data were collected through
structured questionnaire. On the basis of data analysis, it was 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 were accessing their net at their home and office/ college. Largely
customers are buying clothe, electronics items and accessories. [ CITATION MrP14 \l
1033 ]

This study proposed some objectives which were to assess how perceived benefits,
perceived risks, psychological factors and website design influence online buying
behaviour of Geothermal Development Company employees. The research design
applied in this research was descriptive survey. The findings indicated that perceived
risk shared 39.94% of the variability of online buying behaviour of GDC employees.
[ CITATION LEY15 \l 1033 ]

This study investigated the relationship between various characteristics of online

shopping and customer purchase behaviour. Results of this study shows about the
behaviour of customers towards online shopping and future of online shopping in
India.[ CITATION Sha15 \l 1033 ]

The researcher highlighted on factors which online Indian customers keep in mind
while shopping. After completion of study Researchers found that cognition, sensed
usefulness, comfort of use, sensed enjoyment and security are the five components
which affect consumer perceptions about online purchasing. The researcher concluded
that occupation of consumers is independent of Purchase habit of consumers in online
shopping.[ CITATION Pro16 \l 1033 ]

The purpose of this research was to study the consumer behavior in online shopping
of electronic goods especially in Bhopal and Jabalpur city of Madhya Pradesh. The
main research question in thesis is how consumers behave while shopping online. In
this study Customer-oriented factors ‘time saving’, ‘product quality’, ‘product price’,
‘convenience’, ‘accessibility’, ‘shop anywhere and anytime’.[ CITATION NKS16 \l 1033 ]

The study focused one main objective which was to assess the behaviours of
consumers towards online shopping in Nairobi County, Kenya. The specific
objectives included selecting an appropriate framework from previous research
studies, collect data and use it to assess the adopted framework. The final specific
objective was to make necessary recommendations to the framework based on the
results of study. The research methodology used in this study was of deductive
approach and an explanatory research design. A structured questionnaire was
administered in both electronic and paper form to collect data. The sample population
size was 384 and the chosen to get the respondents was purposive random sampling
method.[ CITATION Kib16 \l 1033 ]

This study was directed amid focusing online marketing, Individual influencing factor
and psychological influencing factor. The information was gathered from respondents
through a planned Questionnaires and scheduled interviews. The study result inferred
that eventual growth of e-tailors in India uniquely in urban communities looking
splendid.[ CITATION NRA16 \l 1033 ]

This paper tries to analyse studies done by various researchers in order to explore
what online channels consumers use when they are in a particular stage of the buying
decision process. The study will create more understanding about why and how on-
line consumers go through their buying decision process.[ CITATION DrG16 \l 1033 ]

Descriptive Research Design has been used for this study. A well-structured
questionnaire was designed and administered to collect samples across Tirupati Town.
The study has been undertaken with reference to a sample size of 120 respondents.
The study has been undertaken with reference to a sample size of 120 respondents.
[ CITATION DrA17 \l 1033 ]

This study aims to establish a preliminary assessment, evaluation and understanding

of the characteristics of online shopping. As the research suggests that increase in
 usage of internet increases the online shopping so there is a need to increase in
broadband penetration as it accelerates the growth of online trade.[ CITATION Mis17
\l 1033 ]

The study is empirical in nature and cross-sectional research design was applied and
the primary data was collected through a structured questionnaire. A sample size of
200 respondents was taken, who are at present living in Kolkata.[ CITATION
Pus18 \l 1033 ]

Findings:
1. Some of the reasons cited for adoption of online shopping include time saving, easy
comparison of alternative products, fairer prices of online goods, expert or user
review of products and access to a market without borders.
2. For respondents who had online purchasing experience, the findings indicated a
positive relationship between perceived benefits of online shopping and online buying
behaviour.
3. There is a less advantages in online buying intention of respondents without online
purchasing experience.
4. Because of revolution in telecommunication sector number of internet user increased
in recent time and there is a willingness to buy online products of the consumers
gradually.
5. Though usage of online shopping by customers is increased but still customers are
giving first preference to manual shopping for regular purchase.

Conclusion:
Due to revolution in telecommunication sector number of users of internet are increased in
India in recent time and customers are using internet for online shopping but still for regular
purchase most of customers first choice is manual shopping. To increase number. of
customers for online shopping there is need of extensive publicity and promotion by online
shopping companies to attract all class of customers. Most of the customers are of opinion
that shipping charges charged by companies are very high, it is suggested to companies to
either reduce shipping charges or delivery of product should be given freely. Companies may
use it as one of the promotional activity. After the study it is observed that major hurdle
behind development of online shopping is of customer awareness. Majority of customers are
not aware about various pre and post services rend by this online shopping companies.

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