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An Empirical Study of Perception of Women Consumers towards Internet

Marketing in Lucknow Region

Chapter · July 2014

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An empirical study of perception of women consumers towards
Internet marketing in Lucknow Region
* Mr. Anisur Rehman
** Dr. Yasir Arafat Elahi

Abstract
Women Consumers are playing an important role in online shopping. The increasing use
of internet by the women consumers in India provides an emerging prospect for online
retailers. If online retailers know the factors affecting women consumers‟ buying
behaviour, then they can further develop their marketing strategies to convert potential
customers into active ones.

In the present work an effort is made to study the potential of Internet Marketing in India.
In this study various dimensions of online shopping as perceived by women consumers in
India are identified and the different demographic factors are also studied. It was
discovered that time factor, ease of purchase, reliability, status symbol, ease of comparing
products, risk in monetary transactions, timely delivery, are the key factors which
influence women consumers‟ perceptions of online shopping. The study revealed that the
perception of online shoppers is independent of their age and education but not
independent of their occupation. Finally, the recommendations presented in this research
may help foster growth of Indian online retailing in future.
Key Words: Online commerce, Communication, Internet Marketing, Online Shopping.
______________________________________________________________________________________

Introduction

In the past decade, there has been a dramatic change in the way consumers have altered
their way of shopping. Although consumers continue to purchase from a physical store,
consumers feel very convenient to shop online since it frees the customer from personally
visiting the store. Internet shopping has its own advantages and it reduces the effort of
travelling to a physical store. Decisions can be made from home at ease looking at
various choices and prices can be easily compared with the competitor‟s products to
arrive at a decision.

Online shopping offers the customer a wide range of products and services wherein he is
able to compare the price quoted by different suppliers and choose the best deal from it.
Internet marketing is conceptually different from other marketing channels and internet
promotes a one to one communication between the seller and the end user with round the
clock customer service. Today, internet marketing is the fastest growing segment of
________________________________________________________________________
*Anis ur Rehman is Assistant Professor, Department of Business Management, Integral
University, Lucknow, PIN -226021, U.P., India. anisur.rehman11@gmail.com
** Dr. Yasir Arafat Elahi is Assistant Professor, Business Administration, Oman College of
Managemnt & Technology, Barka, Sultanate of Oman.

Electronic copy available at: https://ssrn.com/abstract=2955619

online commerce. The major difference between traditional and online selling is the
extent of interaction between the consumer and the seller. There is much more electronic
interactivity with the consumer in the form of emails and FAQs. Through FAQs, the
consumer‟s questions on shipment, payment, product, policies and other customer
concerns can be addressed effectively.

E-Marketing is generally cost-effective, and if done properly, can help build brand
awareness and loyalty. The dawn of the internet era opened up amazing new possibilities.
India has also joined the bandwagon and the numbers themselves do all the talking. The
penetration of active internet users has grown from 2.13 percent in 2010 to 3.7% in
2012.The latest statistics reveal that 400 million people access internet regularly in India
and that is jump of 700% in last six years. The number of claimed Internet users has seen
a growth of 16 per cent over last years. The number of Internet users in India in 2011 was
129 million and this number is estimated to grow up to 150 million by December 2012.
The latest statistics reveal that rural India has 38 million claimed internet users and 31
million active internet users. The penetration of claimed internet users in rural India has
grown from 2.6% in 2010 to 4.6% in 2012, a CAGR of 73%.

Internet marketing in India is a potent combination of technology and marketing acumen.

The Internet era has thrown open a new pathway for today's marketing. The Internet has
made all traditional modes of business outdated and generated amazing new possibilities
in business. Online marketing or internet marketing uses the Internet as a medium to
advertise and sell services and goods.

Internet marketing

Internet marketing provides the marketer the ability to effectively interact with a massive
number of customers and potential customers. At the same time, the Internet marketer has
to well understand the perception of the consumer because the profile of an online
shopper is very different from that of a traditional retail consumer.

In online marketing, first and foremost the business has to understand the tendency of the
online shopper. An online shopper is more information oriented and not only looks for
best prices but also for value. The quality of the product can be best conveyed through
the content and design of the website. „Content is King‟ which means a relevant rich,
detailed and informative website attracts the customer to visit the website again and
again. The online shopper should be able to easily read the information that he is looking
for in the website. The web site design should be at par with the customer needs.

The success of online marketing lies in offering an extensive variety of products for the
online shopper and also on the inventory position. The online store should manage „out of
stock‟ or „out of season‟ customer requests efficiently. The individual needs of the
consumer can be addressed if the website is designed with personalization and mass
customization content. Personalization and mass customization is done based on the
preferences of the customer, the location, particular events and the date or time.
Personalization will enable the customer to view a good content based on his interest and

Electronic copy available at: https://ssrn.com/abstract=2955619

the information he is looking for. At the same time, privacy is the key factor for the
consumer to make the decision of purchasing online.

E-marketing requires new marketing approaches. Traditional marketing focuses on

passive audience while online marketing targets active audience who choose the websites
they should visit and decide the marketing information of the products that they want to
receive.

Literature Review

Dabholkar and Bagozzi et al (2002) 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 exogenous factors like
consumer traits, situational factors, product characteristics, previous online shopping
experiences, and trust in online shopping.

O‟Cass and Fenech (2002); Childers et al. (2001); Davis (1993) in their study discuss that
more attractive online stores should be developed. This raises the issue of examining
what factors affect consumers to shop online. Therefore, a framework is needed to
structure the complex system of effects of these different factors, and develop an in-depth
understanding of consumers‟ perceptions toward Internet shopping and their intentions to
shop online.

Davis (1993) in his study reveals that we build up such a framework based on previous
research on consumer adoption of new self-service technologies and Internet shopping
systems. The research suggests that consumers‟ perception toward Internet shopping first
depends on the direct effects of relevant online shopping features.

Menon and Kahn (2002); Childers et al. (2001); Mathwick et al. (2001) concluded that
online shopping features can be either consumers‟ perceptions of functional and
utilitarian dimensions, like “ease of use” and “usefulness”, or their perceptions of
emotional and hedonic dimensions like “enjoyment by including both utilitarian and
hedonic dimensions, aspects from the information systems or technology literature, as
well as the consumer behavior literature are integrated in our framework. Burke et al.
(2002) discussed that in addition to these relevant online shopping features, exogenous
factors are also considered that moderate the relationships between the core constructs of
the framework.

Research Methodology

The data for the study was gathered through a structured questionnaire. The first part of
the questionnaire included questions about their demographic profile like age, education
and occupation followed by how frequent the respondents buy products online. The
second part consisted of questions measuring the variables which are used to measure the
perception of women consumers regarding internet marketing behavior. All the questions
were prepared on a Likert scale ranging from 1= Strongly Disagree to 5 = Strongly
Agree.

Electronic copy available at: https://ssrn.com/abstract=2955619

Objectives:

1. To study the potential of internet marketing in India.

2. To study the demographic profile of the women consumers and its impact on internet
purchase behavior.

3. To study the factors affecting the perception of women buyers towards internet
marketing.

Hypothesis

H01: Perception of women customers towards internet marketing is independent of their

age.

H02: Perception of women customers towards internet marketing is independent of their

education.

H03: Perception of women customers towards internet marketing is independent of their

occupation.

Research Design - We carried out the research using a combination of primary and
secondary data. Thus we design our research on a combination basis of Exploratory
Research design and Descriptive Research design.

Data Collection - The whole research based on primary data as well as secondary data.

 Primary Data: Primary data was collected through the questionnaire from the
women consumers who are involved in online shopping.
 Secondary Data: Secondary data was collected through the journals, websites,
books, etc.

Sample Size: The sample size was 100 female respondents in Lucknow region based on
the convenience sampling method.

Analysis of Data

The following table reveals the demographic profile like age, education & occupation of the
women respondents:

Table 1: Age of respondents

Particulars No. of respondents
< 18 years 8
18 – 29 years 74
30 – 39 years 14
> 40 years 4
Total 100
 Table 2: Education Qualification
Particulars No. of respondents
Intermediate 10
Graduate 38
PG 44
Others 8
Total 100

Table 3: Occupation
Particulars No. of respondents
Service 45
Business 23
Housewife 32
Total 100

The above tables reveal that from the sample which we have collected, 74% are between
18-29 years followed by 30-39 years with 14%. As far as the educational qualifications of
the respondents are concerned, 82% of respondents are postgraduates & graduates and
only 10% are having intermediate. If we consider the occupation of respondents, 45% are
in service, 23% are in business profession and 32% are housewife.

The questionnaire consists of 15 factors which affect internet marketing behavior of

women consumers. All the factors listed are taken into consideration after a thorough
analysis of the review of literature so as to know the important factors which affect
internet marketing behavior. The mean score of the responses are calculated and ranks are
given accordingly (the higher the mean score, the higher the rank). The responses are
analyzed and presented in Table 4:

Table 4: Factors affecting Internet marketing behavior

S. Factors affecting perception of women SA A NAND D SD Mean Rank

No consumers
1. Do you purchase things online very often? 10 40 25 20 5 3.30 9
2. Online shopping saves a lot of time 70 22 8 0 0 4.62 1
3. Online shopping makes it easier to buy 64 30 6 0 0 4.58 2
goods
4. Online shopping is reliable 6 30 36 16 12 3.02 11
5. Online shopping is a status symbol 20 46 4 22 8 3.48 5
6. Online shopping is wastage of money 18 22 10 35 15 2.93 12
7. Online shopping fits into my life style 24 36 4 20 16 3.32 8
8. Online shopping makes it easy to find 36 44 4 10 6 3.94 4
what I need
9. Online shopping enables me to compare 20 28 12 26 14 3.14 10
products by providing a wide range of
choices
10. Online shopping gives me more time for 23 37 6 18 16 3.33 7
my family
11. The information provided by the sellers 16 24 10 32 18 2.88 13
about the goods available online is enough
12. Online shopping involves risk in 10 18 12 36 24 2.54 14
monetary transactions
13. Have you ever experienced bad sales
services e.g. received a bad quality or 8 12 10 45 25 2.33 15
different goods than you purchased for ?
14. Are you satisfied with the in time delivery 18 46 4 22 10 3.40 6
of goods you paid for ?
15. You have a personal computer and a 58 22 2 10 8 4.12 3
stable internet connection at home

If the mean score falls

 Between (5-4), the response is most favorable
 Between (4-3), the response is favorable
 Between (3-2), the response is uncertain
 Between (2-1), the response is unfavorable
 Between (1-0), the response is most unfavorable
The factor „Online shopping saves a lot of time‟ has scored the highest response (4.62).
The respondents feel that online shopping saves them from going to the market, searching
for the product and bargaining with the shopkeeper. Therefore, they strongly feel that it
saves them a lot of time.

The second factor with the highest response is „Online shopping makes it easier to buy
goods‟ with a mean of 4.58. The respondents feel that online shopping saves them from
travelling and going to the market. They can purchase the goods from the comfort of their
home. Thus, it is easier to buy goods through online shopping.

The next factor with highest response (4.12) is „You have a personal computer and a
stable internet connection at home‟. Most of the respondents have a personal computer
and a stable internet connection at home which facilitates online shopping from their
home.

The fourth factor with highest response (3.94) is „Online shopping makes it easy to find
what I need‟. Most of the respondents feel that online shopping saves them the hassle of
running from shop to shop. They can easily find the required goods on Internet.

The fifth factor with highest response (3.48) is „Online shopping is a status symbol‟.
Most of the women consumers feel that online shopping increases their status in the
society as online shopping is considered to be a habit of high class women.
The next factor with highest response (3.40) is „Are you satisfied with the in time
delivery of goods you paid for‟. The response suggests that majority of women
consumers are satisfied with the timely delivery of goods which are purchased online.

The seventh factor with highest response (3.33) is „Online shopping gives me more time
for my family‟. Majority of women respondents feel that online shopping saves their
precious time which they can spend with their family. It shows that the respondents are
not able to give sufficient time to their family due to their busy schedule. Therefore, they
prefer online shopping because it saves them a lot of time.

The next factor with highest response (3.32) is „Online shopping fits into my life style‟.
Majority of respondents feel that their busy lifestyle does not give them sufficient time
for shopping. Therefore, online shopping finds a place in their lifestyle.

The next factor with highest response (3.30) is „Do you purchase things online very
often‟. This shows that most of the respondents are frequent buyers.

The next factor with highest response (3.14) is „Online shopping enables me to compare
products by providing a wide range of choices‟. Majority of respondents feel that online
shopping enables them not only to find products but also to compare products of different
companies on the basis of their price, quality, variety, etc. This feature is not easily
available in general market.

The eleventh factor with highest response (3.02) is „Online shopping is reliable‟. Not all
the respondents consider online shopping to be reliable. This may be due to the fear of
poor quality of product, hidden cost, risk of online fraud in transaction, etc.

The next factor with highest response (2.93) is „Online shopping is wastage of money‟.
Majority of respondents feel that visiting online shopping websites leads to senseless and
unplanned shopping of goods which they don‟t need. Therefore, it is wastage of money.

The next factor is „The information provided by the sellers about the goods available
online is enough‟. Majority of respondents feel that the information provided by the
sellers is not sufficient. They feel that the information should be more transparent and
detailed.

The next factor is „Online shopping involves risk in monetary transactions‟. Some of the
respondents (28%) feel that online transaction of money for shopping may involve risk
such as identity theft, password hacking, etc.

In the end, the last factor with lowest response (2.33) is „Have you ever experienced bad
sales services‟. Very few respondents (20%) admit to having experienced bad sales
services.

The hypotheses are tested with the help of chi-square test:

H01: Perception of women customers towards internet marketing is independent of their
age.

To test whether the age has significant impact on perception regarding internet
marketing, chi-square test is conducted.

Table 5: Perception of women respondents * Age

Value Df Asymp. Sig.(2-sided)

Pearson Chi- Square 7.672 42 .053

The analysis reveals that the calculated value is 7.672. As the p-value (Asymp. Sig-2
sided) is found to be 0.053, hence hypothesis is accepted at 5% level of significance. So
the perception of respondents regarding internet marketing is independent of Age.

H02: Perception of women customers towards internet marketing is independent of their

education.

To test whether the education has significant impact on internet usage for online
shopping, chi-square test is conducted.

Table 6: Perception of women respondents * Education

Value Df Asymp. Sig.(2-sided)

Pearson Chi- Square 9.452 42 .067

The analysis reveals that the calculated value is 9.452. As the p-value (Asymp. Sig-2
sided) is found to be 0.067, hence hypothesis is accepted at 5% level of significance, so
the perception of respondents regarding internet marketing is independent of Education.

H03: Perception of women customers towards internet marketing is independent of their

occupation.

To test whether the occupation has significant impact on internet usage for online
shopping, chi-square test is conducted.

Table 7: Perception of women respondents * Occupation

Value Df Asymp. Sig.(2-sided)

Pearson Chi- Square 33.447 28 .001

The analysis reveals that the calculated value is 33.447. As the p-value (Asymp. Sig-2
sided) is found to be .001, hence hypothesis is rejected at 5% level of significance, so the
perception of respondents regarding internet marketing is dependent of Occupation.
Findings:

The findings of the study are given as under:

1. The perception of women consumers is independent of their age and education

but not independent of their occupation.

2. 92% of the respondents feel that „online shopping saves a lot of time‟.

3. Almost all the respondents feel that „Online shopping makes it easier to buy
goods‟.

4. Most of the respondents have a personal computer and a stable internet

connection at home.

5. Most of the respondents feel that online shopping makes it easy to find what they
need.

6. More than half of the respondents feel that online shopping is a status symbol.

7. More than half of the respondents are satisfied with the in time delivery of goods
they paid for.

8. More than half of the respondents feel that online shopping gives them more time
for their family.

9. More than half of the respondents feel that online shopping fits into their life
style.

10. 50% of the respondents purchase things online very often.

11. Less than half of the respondents feel that online shopping enables them to
compare products by providing a wide range of choices.

12. There is mixed response among the respondents when asked that „Online
shopping is reliable‟. Around 36% agree whereas 28% disagree with this
statement.

13. There is mixed response among the respondents when asked that „Online
shopping is wastage of money‟. Around 40% agree whereas 50% disagree with
this statement.

14. There is mixed response among the respondents when asked that „The
information provided by the sellers about the goods available online is enough‟.
Around 40% agree whereas 50% disagree with this statement.
 15. More than half of the respondents (60%) disagree that online shopping involves
risk in monetary transactions whereas 28% agree.

16. More than half of the respondents (60%) disagree that they have ever experienced
bad sales services.

Suggestions and Recommendations:

The findings above indicate that online shopping has a lot of potential in India. The
various suggestions and recommendations to explore the full potential of internet
marketing in India are:

1. As per the survey results, quite a number of women prefer both online and in-store
shopping. Measures should be taken by online businesses to attract this category of
women shoppers. For this, the firms have to improve customer satisfaction
dimensions such as availability, responsiveness, timeliness, completeness, and
convenience.

2. Businesses will have to explore more ways to increase their customers and
enhance their branding. This can be done effectively through email, web marketing
and search engine marketing.

3. The firms need to place a clearly defined service policy for the customer on the
website that could help save time and effort in the long time.

4. A proper channel and easy way of services and products could increase customer
trust and keep the existing customer loyal but also create a good thought process
that will grab the attention of new customers in long run.

5. Moreover, detailed product information should be made available through better

methods such as video / audio presentation and elaborated product catalogues.
When all the information that a customer requires is made available to him, then
the customer is inclined to purchase a product or service online.

6. Customer satisfaction has a direct impact on loyalty and hence businesses should
focus on satisfying their customers. Customers should be encouraged to make use
of the online customer support services in case of any inconvenience.

7. In internet shopping, customers decide to purchase a product or service based on

its review. By providing reviews, customer indirectly recommends the brand or
product to others. Since product or service review is increasingly important for its
growth, online companies should encourage their customers to provide
constructive feedback in their websites.
 8. Online businesses will have to focus on acquiring new customers through
advertisement, publicity and discount packages. These customers will have to be
retained and satisfied as both lead to higher levels of customer loyalty.

9. The government should provide Tax incentives to businessmen / consumers for

using Online Services and introduce measures to reduce e-transaction cost.

Conclusion
The result of our study shows that the perception of women consumers is independent of
their age and education but not independent of their occupation. The analytical results of
our study further indicate consumers‟ perceptions of the factors that influence their
intention to buy online. More specifically, consumers‟ perceptions of the time factor, ease of
purchase, reliability, status symbol, ease of comparing products, risk in monetary
transactions and timely delivery exhibit significant relationships with their online buying
intention.

All the factors that are discussed above directly or indirectly lead to improved customer
satisfaction and loyalty of online women shoppers. The outcome of this analysis shows
that online business in India still requires to be improved to a great extent. So there are
opportunities for online business firms to further invest in Indian market and to improve
and increase the volume and performance of online shopping.

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