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Editorial Board A Refereed Monthly International Journal of Management
Prof. B. P. Sharma
(Editor in Chief)
Prof. Mahima Birla
(Additional Editor in Chief)
Dr. Khushbu Agarwal
(Editor)
Ms. Asha Galundia
(Circulation Manager)

 Editorial Team

Dr. Devendra Shrimali
Dr. Dharmesh Motwani
 

Online & Offline Consumer Buying Behavior

(With reference to Udaipur City)

Dr. Rimpi Saluja

Visiting Faculty, Depart. of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur

Dr. Ritu  Soni

Teaching Consultant, Depart. of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur

Dr. Shilpa Vardia

Assistant Professor, Depart. of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur

 

Abstract

 In last 20 years there has been seen a big transformation in terms of lifestyle, preferences and buying trends among Indian consumers. Consumer buying behavior is influenced by many factors like personal, social, environmental, psychological and technological. Rapid advancement in technology and use of internet has brought a drastic change in consumer buying behavior. More and more consumers are shifting to online shopping due to its various advantages. Present study examines the factors that motivate consumers to decide whether to do online shopping or go for offline shopping.  A comparative study is done to find the satisfaction level with experience of consumer buying online and also to analyze the preferences of male and female for online shopping. The research is based on primary data collected through close ended structured questionnaire. Consumers are purposively selected of different age groups includes students, working professionals, housewives and business class people etc.

Keywords: Online Shopping, Offline Shopping, Consumer, Buying Behavior

Introduction

 A buyer’s journey is complex. Consumer buying behavior is influenced by many factors like personal, social, environmental, psychological and technological. Before buying consumers look into various aspects like type of product, its quality, price, availability of substitute, convenience etc. A decade before consumers have fewer options and they were restricted to the place where they lived but now with the development in technology and increasing use of internet has brought a drastic change in the buying behavior of consumers. Now more and more consumers are turning to the World Wide Web for their shopping needs. The consumers can avail variety of goods and services at anytime and anywhere. But with lots of advantages online shopping also has various disadvantages like security of personal data, fraud by sellers etc. that have raised many issues on the potentiality and utility of Online Buying.

          Over the last several years, the Indian e-commerce market has seen a dramatic shift. The year 2017 will see large scale growth in the Indian e-commerce sector. ASSOCHAM-Resurgent India reported  that in 2016, about 69 million consumers purchased online which is expected to cross 100 million by 2017 with the rise of digital natives, better infrastructure in terms of logistics, broadband and Internet-ready devices to fuel the demand in e-commerce. The report added that by the end of 2018, Indian e-retail is expected to touch $17.52 billion. "The total retail sale is growing at an impressive rate of 15%, registering a double digit growth figure year after year," it said. According to the joint study, Bangalore saw the highest preference for online shopping in 2016, followed by Mumbai and Delhi. The report also laid out challenges for e-commerce in India including absence of e-commerce laws, low entry barriers leading to reduced competitive advantages, rapidly changing business models, urban phenomenon and shortage of manpower and consumer loyalty. 

            Conceptual Model of Online Shopping    

Source: Ajzen (1991) the theory of planned behavior

These are constraints used in this conceptual model. Desired Consequences, attitude, norms and behavior all are independent variable which influences the dependent variable i.e intention for online shopping.

 

 

Review of literature

The purpose of this review is to understand the factors which effect buying behavior of consumers. The summary of the previous studies would be helpful to know about reasons for which online shopping is becoming more popular than offline shopping.

Dr. R., C., P.V., & S.A. (2017) in their study tried to recognize that, how consumer measure channels for their purchasing. The objective of their study was to provide an impression of online shopping decision process by comparing the offline and online decision making and identifying the factors that motivate customers to decide whether to do online shopping or go for the offline shopping. The study found that female is more into online shopping than male. The people from the age group 35 and above are less likely to do online shopping because they are less aware of the technology.

Sarkar (2017) found that there is a significant difference between consumer purchase style in online and offline medium which is based on certain parameters. Despite the rapid growth in online sales in India and the projection of further uptick in this medium of shopping, the majority of consumers in India still prefers the so called ‘real’ shopping experience of brick and mortar shops, it’s mostly the youngsters who are fueling the amazing growth story of online shopping in India. Advent of online medium of shopping has no doubt hit the offline stores hard. Large discounts offered by the e-tailers have indeed put enormous pressure on their bottom line.

Chandra & Devendra (2015) analyzed factors affecting on online shopping behavior of consumers that might be one of the most important issues of e-commerce and marketing field. 100 questionnaires were dispersed among the citizen of Bhilai-Durg (Twin City) who were the consumers of Bhilai –Durg and the online shoppers. Regression analysis was used on data in order to test hypothesizes of the study. The findings of their study were that there is strong correlation between age, income and education level with on-line shopping.

Andrian & Sihombing (2014) studied the factors that have influenced consumer purchase intention for online shopping. They examined the relationship between purchase intentions (dependent variable) and identified four independent variables which include utilitarian value, hedonic value, security and privacy. Data collected from 200 college students who have done online shopping at Traveloka.com websites by using non-probability sampling method. The data was analyzed by multiple regressions. This study shows the purchase intention influenced by utilitarian value and security. On other hand, hedonic value and privacy were not the factors that affecting the purchase intention.

Ms. Jain, Ms. Goswami, & Ms. Bhut (2014) studied the impact of Perceived Risk, Perceived enjoyment, Perceived usefulness and Perceived ease of use factors on online opping behavior of consumers in Delhi. The sample of the study comprised of 160 online shoppers from Delhi. Respondents belonged to different age groups, income groups and occupations and have a prior experience in online shopping. A pre – structured questionnaire was used with a 5 point Likert rating scale to measure the factors influencing the respondent’s behavior to shop online. The empirical results revealed that only one factor, namely Perceived Risk significantly affected online shopping behavior of consumers in Delhi while Perceived enjoyment, Perceived ease of use and Perceived enjoyment hinders the consumers to shop online so the researchers suggests that the companies must focus on Perceived risks to develop consumers trust towards online shopping.

Dr.Sharma, Dr.Mehta, & Sharma (2014) studied the online buying behavior of consumers in India. They also attempted to get information about the scope of improvement in online shopping website. They analyzed that the Indian consumers are also getting addicted to the online shopping and they do like various features of online shopping as by rest of the world.

Dr.Nagra & Dr.R (2013) used both qualitative and quantitative research methods to study the impact of Demographic factors of consumers on on-line shopping parameters like satisfaction with on-line shopping, future purchase intention, frequency of on-line shopping, numbers of items purchased, and overall spend on on-line shopping. The results of study revealed that on-line shopping in India is significantly affected by various demographic factors like age, gender, marital status, family size and income and proved that the respondents have perceived online shopping in a positive manner.

Dr.Hooda & Mr.Aggarwal (2012) examined the key consumer behavior attribute and relation among them with E marketing perspective. They studied the acceptance rate of e-marketing among the Jaipur consumers and its impact on their purchase decision. The result of their study was that people irrespective of age and gender surf internet. However significant difference exists between the age and attributes of online trading but it do not have any relation with the gender. Most of the respondents are hesitant to purchase items over internet because of security concerns.

Research Gap

After the study of above literature it is found that very less work has been done to compare the reasons for which people are motivated towards online shopping and also the factors for which consumer are not attracted to shop online and still feel comfortable to do shopping from stores. Thus in this study the researcher attempted to study the satisfaction level of consumer buying products from offline and online stores.

Objectives

  1. To study about the awareness of online shopping among the consumers of Udaipur city.
  2. To analyze the factors that promotes consumers for online and offline shopping.
  3. To compare the consumers’ expectation level with the satisfaction after online shopping.
  4. To study the influential factors of online shopping preferences between male and female consumers.

Hypothesis

  1. Consumers’ expectation level does not differ significantly with the satisfaction after online shopping.
  2. There is no correlation in the factors influencing online shopping preferences of male & female consumers.

Research Methodology

Nature of Study                     Descriptive

Nature of Data                      Primary Data

Survey Tool                           Closed Ended Structured Questionnaire

Measurement scale                 Likert 5 Point Scale [(1) strongly agree (2) Agree (3) neutral                                                            (4) Disagree (5) Strongly Disagree]

Survey Area                           Udaipur, Rajasthan, India

Method of Sampling             Non-probability convenience sampling technique

Data Collected

The data was collected from the consumers of Udaipur city. Initially 350 questionnaires were sent to various consumers and 305 completed questionnaires were received.

Analysis & Interpretations

  1. Demographic Profile of Respondents:

Descriptive statistics are illustrated in Table 1, which indicates demographic wise distribution of respondents. 61.64% respondents are female & rest 38.36% are male. Majority number of consumers belongs to the age group of 20 to 25 years (30.82%) followed by 25 to 30 years (24.26%).

Table 1: Demographic profile of respondents

(A) Gender Wise

Male

Female

117 (38.36%)

188 (61.64%)

(B) Age Wise

Less than 20 year

20- 25 years

25-30 years

30- 35 years

35 & above

23 (7.54%)

94 (30.82%)

74 (24.26%)

62 (20.33%)

52 (17.05%)

           

 

  1. Shopping Profile of Respondents:

Table 2 is depicting the shopping profile of respondents. There were 76.72% respondents who said that they prefer online shopping while 23.28% respondents do not prefer online shopping. Respondents were asked that which one is a better mode of shopping and as a response majority of respondents said that online & offline both modes are good.

         Further respondents were asked that from when they are availing online shopping and as a result 40% respondents said that they have online shopping experience of 1 to 3 years. 20.33% respondents are shopping online from last 3 to 5 years while 18.03% respondents have online shopping experience of less than 1 year. There were 10.82% respondents who have never shopped online.

 

 

 

Table 2: Shopping profile of respondents

(A) Preference of Online Shopping

Yes

 

No

234 (76.72%)

71 (23.28%)

(B)  Experience of Online Shopping

No Experience

Less than 1 year

1-3 years

3-5 years

More than 5 years

33(10.82%)

55 (18.03%)

122 (40%)

62(20.33%)

33 (10.82%)

(C) Better Mode of Shopping

Online Shopping

Offline Shopping

Both

40 (13.11%)

88 (28.85%)

177 (58.03%)

             

 

  1. Frequency of Shopping:

Respondents were asked that how often they shopped online and offline and results received are presented in table 3. Majority of respondents (41.97%) shopped online in a month followed by in every 2 months (34.10%) and fortnightly (11.48%). On the other side 32.46% respondents shopped offline once in a month and 20% respondents’ shopped offline once in a week & 10.82% respondents never shopped online.

Table 3: Shopping Frequency of respondents

Frequency of Shopping

Online

Offline

 

 

 

N

 

Percentage

 

N

 

Percentage

Everyday

0

0.00

31

10.16

Once in a Week

5

1.64

61

20.00

Once in a Fortnight

35

11.48

59

19.34

Once in a month

128

41.97

99

32.46

In every 2 months

104

34.10

55

18.03

Not Applicable

33

10.82

0

0.00

Total

305

100

305

100

  1. Preferred Online Shopping Website

Online shopping respondents were asked about the website they prefer to shop and results received are presented in table 4. According to results the top three online shopping websites are Amazon (86.56%), Flipcart (63.93%) and Snapdeal (33.44%) respectively. ShopClues (7.87%) and bigbasket (6.89%) are least preferred shopping websites.

Table 4: Preferred Online Shopping Website

Preferred Online Shopping Website

N

Percentage

Amazon

264

86.56

Snapdeal

102

33.44

Flipcart

195

63.93

Homeshop 18

24

7.87

Zabong

42

13.77

Myntra

77

25.25

ShopClues.com

24

7.87

Bigbasket

21

6.89

Other

13

4.26

 

In literature review it has been observed that males & females purchase different products during online shopping, to check this argument the preferred products in online shopping were segregated according to the gender of respondents and results received are presented in table 5. 

Preferred Products in Online Shopping

Online shopping respondents were asked about the products they prefer to purchase from the online shopping sites and results are shown in table 5.

 

 

Table 5: Preferred Products in Online Shopping

Preferred Products in Online Shopping

Male

Female

N

Percentage

N

Percentage

Clothes

47

40.2

148

78.7

Electronic Items

115

98.3

44

23.4

Books

51

43.6

27

14.4

Accessories

21

17.9

95

50.5

Holidays Packages

19

16.2

5

2.7

Household goods

19

16.2

56

29.8

Travel tickets

71

60.7

43

22.9

Theatre, cinema tickets

94

80.3

78

41.5

Other

15

12.8

12

6.4

On the analysis of above table it is found that male consumers are mostly prefer to buy electronic items (98.3%) and book theatre (80.3%) and cinema tickets where as female consumers prefer clothes (78.7%)  and accessories (50.5%).

  1. Preferred factors for Online Shopping

Respondents (N=272) were asked to rank the factors affecting their online shopping preference on the scale of 1 to 10. Final ranking is obtained with the help of weighted arithmetic mean as presented in table 6. According to respondents top three factors due to which they prefer online shopping are time saving (Weighted mean=6.92), 24 by 7 availability (Weighted mean=6.88) and variety of products (Weighted mean=6.67). Factors which are not responsible for the online shopping are Finances easily (Weighted mean=2.29) and Low price than store (Weighted mean=2.81)

 

Table 6: Preferred factors for Online Shopping

S. No.

Weight

10

9

8

7

6

5

4

3

2

1

Total (N)

Weighted Total

Weighted Average

Rank

Rank

1

2

3

4

5

6

7

8

9

10

Reason of Preference

1

Time save

94

50

44

15

16

9

17

5

17

5

272

2110

6.92

1

2

24/7 availability

68

83

40

12

11

23

5

11

14

5

272

2098

6.88

2

3

Variety of products

50

54

79

21

15

17

11

9

8

8

272

2035

6.67

3

4

Discounts

17

27

20

65

41

39

15

21

13

14

272

1632

5.35

4

5

Convenience

21

10

15

35

70

40

29

29

19

4

272

1530

5.02

5

6

Comparison shopping

15

3

14

32

42

58

38

41

14

15

272

1373

4.50

6

7

Better Return Policies

9

6

15

22

23

35

50

42

36

34

272

1163

3.81

8

8

Home Delivery

17

21

25

34

7

21

41

56

24

26

272

1350

4.43

7

9

Low price than store

0

14

7

6

15

16

33

35

81

65

272

858

2.81

9

10

Finances easily

6

5

5

8

13

7

9

45

39

135

272

698

2.29

10

 

  1. Consumers’ Satisfaction with Online Shopping

Respondents were asked to indicate their level of satisfaction towards various factors of online shopping on 5 point scale from 1 to 5 (5 denotes the highly satisfied, whereas, 1 is the highly dissatisfied). Final result is obtained with the help of mean.

The score among 1.00-1.80 means Highly Dissatisfied

The score among 1.81-2.60 means Dissatisfied

The score among 2.61-3.40 means Neutral

The score among 3.41-4.20 means Satisfied

The score among 4.21-5.00 means Highly Satisfied

The final scores for various factors are presented in table 7

Table 7: Consumers’ Satisfaction with Online Shopping

Parameter

Mean Score

Level of Satisfaction

Time save

4.20

Satisfied

Low Price

3.36

Neutral

Variety of Products

4.13

Satisfied

Discounts

3.66

Satisfied

Convenience

3.88

Satisfied

Comparison shopping

3.88

Satisfied

Consumer Review

3.65

Satisfied

Service Quality of sellers

3.06

Neutral

Difference in expected & Real

3.51

Satisfied

Product

3.20

Neutral

Complain Redressal

3.39

Neutral

 

  1. Limitations of Online Shopping

Respondents ranked the limitations of online shopping from 1 to 6 and final ranking was obtained with the help of weighted arithmetic mean. According to results presented in table 8 the biggest limitation of online shopping is no tangibility (Weighted mean=3.66) followed by lack of trust (Weighted mean=3.62) and no trail ability (Weighted mean=3.47) ranked 2nd & 3rd respectively.

Table 8: Limitations of Online Shopping

S. No.

Weight

6

5

4

3

2

1

Total (N)

Weighted Total

Weighted Average

Rank

Rank

1

2

3

4

5

6

Limitations of Online Shopping

1

No tangibility

95

36

38

39

33

31

272

1116

3.66

1

2

No trail ability

50

83

31

38

34

36

272

1057

3.47

3

3

Lack of trust

54

51

85

39

25

18

272

1104

3.62

2

4

Delay in Delivery

23

44

32

78

48

47

272

863

2.83

5

5

No interaction with seller

37

32

72

40

71

20

272

952

3.12

4

6

Fraud

28

32

20

34

58

100

272

726

2.38

6

 

 

 

  1. Reasons behind the preference of Offline Shopping

Respondents were asked to rank the factors affecting their offline shopping preference on the scale of 1 to 6. Final ranking is obtained with the help of weighted arithmetic mean as presented in table 9. According to respondents top three factors due to which they prefer offline shopping are Touch & Check product (Weighted mean=5.03), On spot Delivery (Weighted mean=4.65) and Better after sale service (Weighted mean=3.44).

Table 9: Reasons behind the preference of Offline Shopping

S. No.

Weight

6

5

4

3

2

1

Total (N)

Weighted Total

Weighted Average

Rank

Rank

1

2

3

4

5

6

Reasons for Preference of Offline Shopping

1

On spot Delivery

107

97

50

13

15

23

305

1419

4.65

2

2

Touch & Check product

127

124

22

9

14

9

305

1534

5.03

1

3

Better after sale service

18

36

92

95

43

21

305

1048

3.44

3

4

In store discounts

9

20

62

75

88

51

305

854

2.80

5

5

Better Return Policies

6

13

26

59

112

89

305

695

2.28

6

6

Instant gratification

30

29

45

38

77

86

305

859

2.82

4

 

  1. Hypothesis Testing

H01         Consumers’ expectation level does not differ significantly with the satisfaction after online shopping.

To measure the impact of online shopping experience on consumers’ satisfaction ANOVA is applied as shown in table 10.

 

 

Table 10: ANOVA test results to measure impact of online shopping experience on consumers’ satisfaction

Time save

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

4.711

3

1.570

2.726

Significant

Within Samples

154.359

268

0.576

Total

159.07

271

 

Low Price

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

5.26

3

1.753

2.863

Significant

Within Samples

164.12

268

0.612

Total

208.724

271

 

Variety of Products

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

2.308

3

0.769

1.284

Not Significant

Within Samples

160.618

268

0.599

Total

162.925

271

 

Discounts

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

10.59

3

3.530

4.535

Significant

Within Samples

208.598

268

0.778

Total

219.189

271

 

Convenience

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

11.83

3

3.943

4.622

Significant

Within Samples

228.636

268

0.853

Total

233.467

271

 

Comparison shopping

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

1.968

3

0.656

0.900

Not Significant

Within Samples

195.445

268

0.729

Total

197.413

271

 

Consumer Review

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

2.679

3

0.893

1.068

Not Significant

Within Samples

224

268

0.836

Total

226.679

271

 

Service Quality of sellers

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

14.994

3

4.998

3.856

Significant

Within Samples

347.327

268

1.296

Total

362.321

271

 

Difference in expected & Real

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

10.26

3

3.420

3.144

Significant

Within Samples

291.533

268

1.088

Total

299.496

271

 

Product

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

11.253

3

3.751

3.033

Significant

Within Samples

331.498

268

1.237

Total

341.398

271

 

Complain Redressal

Source of Variation

Sum of Squares

Degree of Freedom

Mean Sum of Squares

F-Ratio

Result

Between Samples

9.856

3

3.285

2.817

Significant

Within Samples

312.56

268

1.166

Total

322.416

271

 

Level of Significance = 5%, Tabulated Value = 2.70

  1. At 5% level of significance majority of F-statistic values are significant which provides enough evidence to reject the null Hypothesis. So it can be inferred that Consumers’ expectation level significantly differ with the satisfaction after online shopping.

H02         There is no correlation in the factors influencing online shopping preferences of male & female consumers.

To measure the correlation in the factors influencing online shopping preferences of male & female consumers’ spearman’s rank correlation is applied and results are presented in table 11.

Table 11: Correlation in the factors influencing online shopping preferences of male & female consumers

Reason of Preference

Ranking

Male

Female

Time save

1

1

24/7 availability

3

2

Variety of products

2

4

Discounts

4

3

Convenience

5

5

Comparison shopping

7

8

Better Return Policies

8

7

Home Delivery

6

6

Low price than store

9

9

Finances easily

10

10

Coefficient of Correlation

+0.95

Result

High degree of Positive Correlation

High degree of positive correlation (+0.95) is observed in the factors influencing online shopping preferences of male & female consumers which leads to the rejection of hypothesis so it can be concluded that there is a correlation in the factors influencing online shopping preferences of male & female consumers.

Conclusion

    The present study analyzed the buying behavior of consumers and also factors which motivate consumers to buy offline or online. After analysis of the above study the researchers found that female respondents are more attracted towards online shopping than male. It was also found that female mostly shop of clothing and accessories whereas male respondents shop more of electronic items. The researchers found that most respondents do online shopping because it save their time and also they get variety of products on these stores but sometimes due to delay in delivery and fraud by sellers they prefer to buy from offline stores where they can touch and check the product and have instant gratification after shopping.  ANOVA test also proved that consumers’ satisfaction with online shopping differs with respect to the experience of online shopping. High degree of positive correlation is found in the factors influencing online shopping preferences of male and female consumers.

 

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