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A STUDY ON PERCEPTION OF CONSUMER TOWARDS ONLINE SHOPPING

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शोधप्रभा ISSN: 0974-8946
Shodha Prabha (UGC CARE Journal) Vol. 48, तृतीयाांक, Book No.05: 2023
A STUDY ON PERCEPTION OF CONSUMER TOWARDS ONLINE SHOPPING

Dr. K. SARANYA, Assistant Professor, PG and Research Department of Commerce, Thiagarajar

College, Madurai -09 Email ID: kbommu26@gmail.com
Dr. D. ANUSANKARI Assistant Professor, PG and Research Department of Commerce,
Thiagarajar College, Madurai -09 Email ID: anusankari18@gmail.com

Abstract:
The recent rapid growth of the internet and the e-commerce boom have created significant
opportunities that are characterized by a lack of spatial boundaries. Many businesses have also
changed their business model and shifted from physical sellers to the virtual market because of the
opportunities offered by an online business. Online shopping also assists the people to pay with credit
card, debit card or through internet banking. So an attempt has been made to know about perception
of the consumer towards online shopping with 180 respondents in Madurai City. Analyses were done
with help of SPSS and Percentage, Mann-Whitney Test, Kruskal Wallis Test, Factor Analysis and
Garrett Ranking. The conclusions were made based on the findings.

Keywords:
Online Shopping, Perception, Factors, Satisfaction and Problems

INTRODUCTION:
The use of the Internet as a channel of information and commerce is growing at a fast pace in
India. The Indian e-commerce market is estimated to be Rs.76,000 crores, witnessing a growth rate of
88% annually and has increased 692% since 2023. This is because online shopping, besides conferring
its consumers with several benefits, also increases the uncertainty involved in purchase decisions.
Internet is an “anytime anywhere’ medium that has given birth to entirely new business models and
opened completely novel opportunities for global marketing. Consequently, the growth of new
technologies enables to make business faster than before in the course of the means of Online
Shopping. There are many corporations like flipkart, Amazon and so on which provide online shopping
and large variety of products.
Anything that customer’s purchases affects environment by means of delivery, whether they
have the product shipped at home or drive to a brick and mortar store (supermarket).In this marketing
strategy the perception of consumer is utmost important.. There are lot many factors behind this
purchase behaviour and perception is one such factor. Studying consumer perception represents a road
map of consumers’ minds that marketing managers can use to formulate their marketing strategies.
The present study focuses on Online shopping in the terms of consumers’ perception. The study
concentrated on the perception of consumers towards online shopping, the problems faced by them in
online shopping and the satisfaction in online shopping.

STATEMENT OF THE PROBLEM:

The internet has increasingly significant influence on people’s everyday lives in aspects such
as communication, entertainment, social activities, and shopping behaviour. Online Shopping offers
many opportunities to developing countries like India. The e-commerce boom has certainly changed
the way of shopping for the better. Despite all the efforts of e-commerce companies to alleviate them,
there are a few problems that customers still have to face while shopping online such as quality issues,
delivery and logistics, digital payment failure, additional payment and lack of security. These problems
will certainly affect the purchasing behaviour of the consumer through online. Therefore the present
study is titled as “A study on perception of consumer towards online shopping”. The study intended to
analyze the perception, problems and satisfaction of consumer towards online shopping.

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शोधप्रभा ISSN: 0974-8946
Shodha Prabha (UGC CARE Journal) Vol. 48, तृतीयाांक, Book No.05: 2023
REVIEW OF LITERATURE:
Before framing the objectives for the present study, the researcher reviews journals, magazines,
projects and thesis relating to online shopping behaviour of consumers. The following are some of the
literature reviewed for the present study.
Kandeeban R conducted a project entitled "Computer Applications in E Commerce a Study
With Reference To Customer Perception Preference and Satisfaction of Online Shopping in Chennai
City". The study was made with objective and to examine the risks associated with online shopping.
Further, to study the perception and satisfaction of online shopping customers. The finding shows that
7.04% of the respondents are total value of purchases through on line in a year Rs.100000 and above.
The suggestion of his respondents were offer free shipping, Use strong passwords, Use multiple
product images, add live chat to your website.
Hemamalini R has focused attention upon "Analysis of online shopping behavior of consumers
in Madurai city". The study was framed with objective to determine the impact of perception;
motivation and satisfaction on repurchase intention of online consumer. The findings shows that 43.3
percent of his respondents have low level of repurchase intention and 34.1 percent of respondents are
having low level of satisfaction towards online shopping and Vendors must take care that shopping
websites are user-friendly for the online consumer were suggested on her research.
Ponraj V has made a study on the title "A study on impact of online shopping on the retail
trade of Tirunelveli district" The study was made with objective to study the effect of online shopping
on profitability of retail trade to analyse the problems faced in retailing. The findings shows that it is
identified that 100 per cent of the respondents have returned the goods and none of the respondents
continue to see the stock if they are banned by FDA is expired in nature. The goods are returned to the
retailers. Hence there is no loss to the retailers or additional expenses borne by them. The respondents
suggested that the a retailer should be in the good books of customer by providing better quality
products, fair price and friendly after sales services.

OBJECTIVES OF THE STUDY:

The following objectives were framed for the present study.
1. To study the demographic profile of the respondents towards online shopping.
2. To measure the factors influencing and the perception of the respondents towards online shopping.
3. To identify the problems faced by the respondents and satisfaction towards online shopping
4. To offers suitable suggestions based on the findings.

SCOPE OF THE STUDY:

The present study is framed merely to determine the perception of the respondents towards
online shopping. The study aimed to present the various online shopping applications available. It
covers perception, problems, and satisfaction on online shopping. Further the study concentrated on
the factors that influence the customer of online shopping platform. The study is done with special
reference to Madurai district.

RESEARCH METHODOLOGY:
The present research was conducted in Madurai district by using questionnaire which contains
relevant questions regarding online shopping. All questions are closed-ended because to get all
possible answers from the respondents by using the Likert scale. A simple random process has been
used to collect data with a sample size of 180 respondent’s samples. The data collected were tabulated
are systematically processed with the statistical tools such as Percentage, Mann-Whitney Test, Kruskal
Wallis Test, Factor Analysis and Garrett Ranking used for hypothetical analysis.

FINDINGS OF THE STUDY:

Demographic Profile of the sample respondents:

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शोधप्रभा ISSN: 0974-8946
Shodha Prabha (UGC CARE Journal) Vol. 48, तृतीयाांक, Book No.05: 2023
Table – 1 depicts the socioeconomic background of the sample respondents of the select
Insurance. The socioeconomic background of respondents is measured with five important elements
Table: 1
Particulars No of Percentage
respondents
Gender Male 95 53 %
Female 85 47 %
Age 18 to 25 years 102 57%
26 to 40 years 36 20%
41 to 50 years 31 17%
Above50 years 11 6%
Marital Status Married 104 58%
Unmarried 76 42%
Educational Qualification Illiterate 3 2%
Higher secondary 17 9%
Diploma 51 28 %
Under graduate 59 33 %
Post graduate 50 28%
Occupation of the Respondents Agriculture 4 2%
Business 34 19%
Government employee 28 16%
Private employee 36 20%
Student 78 43%
Monthly Income of Less than Rs 18000 63 35%
Respondent Rs 18001 to 25000 36 20%
Rs 25001 to Rs 50000 39 22%
More than Rs 50001 42 23%
Place of Accessing The Resident 86 48%
Internet Office 33 18%
Public place 39 22%
Educational institution 22 12%
Influenced To Purchase Self 79 44%
Products / Service Through Spouse 24 13%
Online Children 26 15%
Kin (relative) 24 13%
Crony (close friends) 27 15%
Method of Payment Used ATM Card 28 16%
Credit Card 26 14%
Online Transfer 38 21%
Cash on Delivery 58 32%
Mobile Banking 30 17%
Recommend Online Shopping Yes 156 87%
to Other People No 23 12%
Source: Primary Data
From the above table it is derived that most of the respondents in the study are male (53%) in
the age group between 18 years to 25 years (57%) and they were married (58%). Mostly the
respondents in the study are pursing their under graduate degree (33%). Most of the respondents access
internet (48%) in their resident for online shopping by the influence of themselves (44%), they made

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शोधप्रभा ISSN: 0974-8946
Shodha Prabha (UGC CARE Journal) Vol. 48, तृतीयाांक, Book No.05: 2023
payment through Cash on Delivery (32%) and they also recommended online shopping to others
(87%).

Factor that influence the consumer towards Online Shopping:

In the present study, thirty five factors have being identified as variables which influence the customers
towards online shopping with Likert’s five point scaling techniques. The scores of thirty five variables
are analysed initially with the factor analysis. For this purpose, the KMO and Bartlett’s test of
sphericity has been applied and the result is presented in the table.
Table 2
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.783
Bartlett's Test of Sphericity Approx. Chi-Square 5625.702
Df 210
Sig. .000
From the above table 2 it is derived that the value of KMO is 0.783 and it is significant. Further
the thirty five variables are identified as five group of factor influencing the customer and the result
are presented in the following table.
Table 3 Total Variance Explained
S.No Factors Eigen Values Percentage of Cumulative Percentage
Variance of Variance
1. Personal Factor 4.778 22.755 22.755
2. Purchasing Factor 4.363 20.778 43.533
3. Service Factor 3.259 9.898 53.431
4. Environmental Factor 2.330 8.734 62.165
5. Retailer Factor 1.889 6.909 69.074
Source: Computed Data
Relationship between factors influencing the consumer and perception of the consumer
towards online shopping:
The researcher wants to know whether there is any, difference between factor and perception
of the consumer towards online shopping to measure the relationship between these variable
correlation has been applied.
Table 4 Factor Influencing and Perception
Factor Personal Purchasing Service Environmental Retailer
Influencing and Factor Factor Factor Factor Factor
Perception
Pearson’s 0.531 0.489 0.294 -0.080 0.584
correlation
N 180 180 180 180 180
P Value 0.000 0.000 0.443 0.837 0.000
Significance Significant Significant Not Not Significant Significant
Significant
Source: Computed Data
From the above table 4it is inferred that the calculated correlation value for personal factor is
0.531, purchasing factor is 0.489, service factor is 0.294 and retailer factor 0.584. This implies among
that there is positive correlation between the factors influencing and the perception of online shopping.
Whereas for Environmental factor is -0.080 and there is a negative correlation between the factors
influences and the perception of online shopping.

Problems faced by the consumers towards online shopping:

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शोधप्रभा ISSN: 0974-8946
Shodha Prabha (UGC CARE Journal) Vol. 48, तृतीयाांक, Book No.05: 2023
The respondents were asked to rank the problems faced by them while switching over to online
shopping mode. There were totally ten problems and they were ranked according to their scores by
using Garrett Ranking Technique.
Table 5 Problems faced by the consumers towards online shopping
Problems Total Score Mean Garret
Score Rank
Received Mismatch goods or damaged product 1051 5.8388 4
Unsolved our queries 1137 6.3166 2
Receive a product to get long time duration 1319 7.3277 1
Complex process of Payment 987 5.4833 6
Theft of ATM card Information 1103 6.1277 3
Inefficient after sales service 834 4.6333 9
Confused by choosing product 836 4.6444 8
Price is high 705 3.9166 10
Quality is worst 1034 5.7444 5
Information about the product is very less 894 4.9666 7
Source: Computed data
From the above table, it was derived that “Receive a product to get long time duration” was
given first rank, “Unsolved our queries ” was given second rank, “Theft of ATM card Information”
was given third rank as of the respondent.

Relationship between the profile of the consumers and the satisfaction of the consumers towards
online shopping:
In this section an attempt has been made to analyse the association between demographic
profile of the respondents such as gender, age, educational, qualification, occupation and monthly
income of the respondents and satisfaction of the consumers towards online shopping by using Mann
– Witney U and Kruskal Wallis H test has been used.
Ho: There is no significant association between Genders, Age, Educational Qualification,
Occupation and Monthly Income of the respondents and satisfaction of the consumers towards online
shopping.
Table 6 Profile of the respondents and satisfaction of the consumers towards online shopping
S.NO Variable Z value/H value P value
1. Gender 2.687 0.007
2. Age 9.342 0.009
3. Marital status 9.285 0.000
4. Educational qualification 11.410 0.003
5. Occupation 14.074 0.007
6. Monthly income 12.594 0.006
7. Locality 5.609 0.000
Source: Computed data
From the above table it is understood derived that the Z value for Gender (2.687) Martial status
(9.285) and locality (5.609), the H value for Age (9.342), Educational qualification (11.410),
occupation (14.074) monthly income (12.594), have significant relationship towards satisfaction of
consumers towards online shopping. Therefore there is a significant relationship between Gender, age,
educational qualification, marital status, locality and Occupation towards satisfaction of the consumers
towards online shopping

Opinions to improve consumers’ confidence towards online shopping:

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 शोधप्रभा ISSN: 0974-8946
Shodha Prabha (UGC CARE Journal) Vol. 48, तृतीयाांक, Book No.05: 2023
The respondents were asked to rank the problems faced by them while switching over to online
shopping mode. There were totally ten problems and they were ranked according to their scores by
using Garrett Ranking Technique.
Table 7 Opinions to Improve Consumers’ Confidence towards Online Shopping
Opinions Total Mean Garret
Score Score Rank

Enhancement in secure in online payment systems 950 5.2777 1

Creating awareness of online security 900 5 2
Detailed about vendor company 592 3.2888 6
Better consumer awareness of their rights 636 3.5333 4
Harsher penalties for fraud 473 2.6277 7
Regulated by recognized bodies/tighter regulations 596 3.3111 5
Delivery Methods 893 4.9611 3

Source: Computed data

From the above table, it was derived that “Enhancement in secure in online payment systems”
was given first rank, “Creating awareness of online security” was given second rank, “Delivery
Methods” was given third rank.

SUGGESTIONS:
From the interpretation made during the study and from the opinion of the respondents, the following
suggestions were clubbed by the researcher.
1. Arrival of new products does not reach to the notice of the customer's often. So, the online stores
should make concerted efforts in strengthening their advertising apparatus.
2. Websites of online stores should be made more attractive and appealing to the buyer in order to
retain the potential shoppers.
3. The grievances specified by the customers like delay in delivery of goods, hidden charges, product
mismatch at the time of delivery of goods etc. are to be redressed at the earliest may increase
customers satisfaction.
4. The supplier of goods does not offer any advice with regard to method of using a product. Hence
it is suggested that staff who involve in delivery of goods may train rural customers with regard to
method of using a product.
5. Improve the Time of delivery, Offer live chat, Fast delivery, by keeping delivery on Safety and
quick responses for their queries improves online shopping.

CONCLUSION:
The result of the study portrays that consumer perception and the factors influencing them towards
online shopping have significant association. While the demographic profile of the respondents
relating to the gender, age, educational qualification, occupation, monthly income and marital status
improve the perception of the respondents to their online shopping behaviour. From the respondents
perceptive the online shopping is highly influenced and they are contented with the methods of
shopping and payment offered in the websites. Thus it can be concluded that Online shopping in India
is ever expanding and there exists huge market potential to tap untapped areas by online stores. It is
the responsibility of the online stores to cater to these customers satisfactorily. Hence, the vendor have
to constantly ascertain their customers’ expectations, initiate necessary actions at the earliest to contain
problems faced by their customers on online shopping.

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