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Research report

  1. 1. Online Apparel Shopping v/s Retail Apparel Shopping Name:- Hetika M. Gala Class:- SYBMS Div:- B Sap Number:- 53002115090Subject:- Research Methods in Business Topic:- Research Report 1
  2. 2. SynopsisOnline Apparel Shopping vs Retail Apparel Shopping is a new comparison inmarket these days. Where the internet consumption rate is growing at a lightningspeed the consumers are shifting from retail shopping to internet online shoppingto save more time. The research is based on what type of apparel shopping dothe consumers really prefer. It also shows the statistics as to how many peopleactually use online shopping for buying clothes. Not only this, but the researchalso shows what are the parameters on which consumer do their shopping. Thereis a very interesting range of parameter chosen by the consumers while they dotheir apparel shopping. It also shows what percent of customers are brand focusor not brand conscious. There is a very thin line between the two. There aredifferent age groups of consumers who are and who are not brand conscious. Itssurprising to see that more than the adults (40years and above) theyouth(16years to 35years) are more brand conscious and more brand loyal. Afterconducting the research its seen that there are many consumers who are notaware of online shopping. They do not know the different websites available forclothes and they do not know the various price range and various choice ofclothes available online. It shows that online market is not that popular amongthe people of India except for a few. One of the main reasons consumers in Indiado not prefer online shopping is because of the fake websites and fraud in money.They choose retail shopping because customers are more shop loyal than brandloyal in India. They get to try and see the apparel and they do not have to wish fortheir clothes to come after 2-3days. Thus companies need to invest more when itcomes to publicizing the online stores for apparel and they have to come up withexciting offers to attract the crowd and more over there have to be proper cyberlaws so that the consumers feel safe to shop online. 2
  3. 3. IndexSr. No. Content Page No. 1 Topic 1 2 Synopsis 2 3 Introduction 4-5 4 Review of Literature 6-13 5 Research Methodology 14 6 Data Analysis 15-18 7 Findings 19 8 Recommendations 20 9 Conclusions 21 10 References 22-24 3
  4. 4. IntroductionApparel shopping as gained transformation in the last 50 years. Earlier days wherethe merchants used to go door to door demonstrating people the clothes, theattractive colours, the goodness of the material and people never knew what abrand was.The new era of shopping has began, more number of international players haveentered the market of apparels. The word “brand” has now become very popularamong the consumers. The world has come to such a stage where a personslivelihood is judged by what brand of apparel he wears.The era has began but the question is what is going to be the stronger medium ofapparel shopping. Is it going to be the increase in number of retail stores likeshoopers stop, vero moda, etc. or is it going to be the fast gaining importance ofonline websites.Many websites online are gaining publicity like www.junglee.com,www.myntra.com, www.jabong.com and so on. These websites have startedadvertising on television, radios, and on many other social networking sites.But how does an online apparel store compete against a retail store?Low Prices and Better OffersAn online apparel store usually draws in customers by offering better prices andoffers for quality products. By having an online store, they can save on monthlyexpenditures which allow them to offer clients good value for their money.Often times they offer free shipping to your locality depending on the total billof the amount ordered. 4
  5. 5. AccessibilityTaking time to browse through an online apparel store is much less timeconsuming than going to a retail store. Often times, customers are worn outfrom their jobs and other chores and would rather prefer to be at home. Also,with the holiday season coming, most people cannot stand to go through theholiday rush of shoppers.Shopping online can easily be done while sitting in front of the TV or lounging onthe sofa. With payments being made online as well, a person can just sit back,relax and wait for the package to be delivered.An online apparel store usuallydraws in customers by offering better prices and offers for quality products. Byhaving an online store, they can save on monthly expenditures which allow themto offer clients good value for their money.Better VarietyShopping online often offers better variety. Not only can you find them foraffordable rates, but most of them allow you to get limited edition items thatyou might otherwise have missed out on.AvailabilityNothing can be more frustrating for a person to go to a shop only to realize thatthe item they wanted is out of stock and might be restocked at a vague date.This not only makes you unreasonably angry, but it also means that you have tokeep taking time out to check if they have got the item you want. Online storeseliminate the chances of this happening by placing out of stock signs next to theproduct. 5
  6. 6. Review of LiteratureTitle: What drives consumers to shop online?Authrors: Tonitta Perea y Monsuwé, (Maastricht University,Maastricht, The Netherlands),Benedict G.C. Dellaert, (MaastrichtUniversity, Maastricht, The Netherlands), Ko de Ruyter, (MaastrichtUniversity, Maastricht, The Netherlands)Publisher: Emerald Group Publishing LimitedAbstract: While a large number of consumers in the US and Europefrequently shop on the Internet, research on what drivesconsumers to shop online has typically been fragmented. Thispaper therefore proposes a framework to increase researchers’understanding of consumers’ attitudes toward online shopping andtheir intention to shop on the Internet. The framework uses theconstructs of the Technology Acceptance Model (TAM) as a basis,extended by exogenous factors and applies it to the onlineshopping context. The review shows that attitudes toward onlineshopping and intention to shop online are not only affected by easeof use, usefulness, and enjoyment, but also by exogenous factorslike consumer traits, situational factors, product characteristics,previous online shopping experiences, and trust in online shopping. 6
  7. 7. DRIVERS OF SHOPPING ONLINE: A LITERATUREREVIEWAna Teresa Machado Escola Superior de Comunicação Social, Instituto Politécnico deLisboaCampus de Benfica de Instituto Politécnico de Lisboa-1549-014 LisboaABSTRACTConsumers are increasingly adopting electronic channels forpurchasing. Explaining online consumer behavior is still amajorissue as studies available focus on a multiple set of variables andrelied on different approaches and theoreticalfoundations.Basedon previous research two main drivers of online behavior areidentified: perceived benefits of online shoppingrelated toutilitarian and hedonic characteristics and perceived risk.Additionally exogenous factors are presented asmoderatingvariables of the relationship between perceived advantages anddisadvantages of internet shopping and onlineconsumer behavior.KEYWORDSe-commerce; online shopping behavior; perceived benefits;perceived risk; exogenous factors 1. INTRODUCTIONThe increasing dependence of firms on e-commerce activities andthe recent failure of a large number of dot-com companies stressthe challenges of operating through virtual channels and alsohighlight the need tobetter understand consumer behavior inonline market channels in order to attract and retainconsumers.While performing all the functions of a traditionalconsumer, in Internet shopping the consumer issimultaneously acomputer use as he or she interacts with a system, i.e., acommercial Web site. On the otherhand, the physical store hasbeen transformed into Web-based stores that use networks andInternettechnology for communications and transactions.In thissense, there seems to be an understanding that online shoppingbehavior is fundamentally differentfrom that in conventional retailenvironment, (Petersonet al., 1997) as e-commerce relies onhypertext Computer Mediated Environments (CMEs) and theinteraction customer-supplier is ruled by totally 7
  8. 8. differentprinciples.Understanding the factors that explain how theconsumers interact with the technology, their purchasebehavior inelectronic channels and their preferences to transact with anelectronic vendor on a repeat basis iscrucial to identify the maindrivers of consumer behavior in online market channels.Onlineconsumer behavior research is a young and dynamic academicdomain that is characterized by adiverse set of variables studiedfrom multiple theoretical perspectives.Researchers have relied onthe Technology Acceptance Model (Davis, 1989: Daviset al., 1989), theTheory of Reasoned Action (Fisbein and Ajzen,1975), the Theory of Planned Behavior (Ajzen, 1991),InnovationDiffusion Theory (Rogers, 1995), Flow Theory (Czikszentmihalyi,1998), Marketing, InformationSystems and Human ComputerInteraction Literature in investigating consumer’s adoption and useof electronic commerce.While these studies individually providemeaningful insights on online consumer behavior, theempiricalresearch in this area is sparse and the lack of acomprehensive understanding of online consumer behavior isstill amajor issue (Saeedet al., 2003).Previous research on consumeradoption of Internet shopping (Childerset al., 2001; DabholkarandBagozzi, 2002; Doolinet al., 2005; Monsuwéet al.; 2004; O´Cass and Fenech, 2002)consumers’ attitude toward Internet shopping and intention toshop online depends primarily on the perceivedfeatures of onlineshopping and on the perceived risk associated with onlinepurchase. These relationships aremoderated by exogenous factorslike “consumer traits”, “situational factors”, “productcharacteristics” and“previous online shopping experiences”.Theoutline of this paper is as follow. In the next section an assessmentof the basic determinants thatpositively affect consumers’intention to buy on the Internet is carried out. Second, the mainperceived risksof shopping online are identified as factors that havea negative impact on the intention to buy from Internetvendors.Third, since it has been argued that the relationship betweenconsumers’ attitude and intentions tobuy online is moderate byindependent factors, an examination of the influence of these 8
  9. 9. factors is presented.Finally, the main findings, the importance toprofessionals and researchers and limitations are summarized. 2. PERCEIVED BENEFITS IN ONLINE SHOPPINGAccording to several authors (Childerset al., 2001; Mathwick et al., 2001; Menon and Kahn, 2002;)onlineshopping features can be either consumers’ perceptions offunctional or utilitarian dimensions, or theirperceptions ofemotional and hedonic dimensions.Functional or utilitarianperceptions relates to how effective shopping on the Internet is inhelpingconsumers to accomplish their task, and how easy theInternet as a shopping medium is to use. Implicit totheseperceptions is the perceived convenience offered by Internetvendor whereas convenience includes thetime and effort saved byconsumers when engaging in online shopping (Doolin, 2005;Monsuwé, 2004).Emotional or hedonic dimensions reflectsconsumers’ perceptions regarding the potential enjoymentorentertainment of Internet shopping (Doolin, 2005; Monsuwé,2004).Venkatesh (2000) reported that perceived convenienceoffered by Internet Vendors has a positive impacton consumers’attitude towards online shopping, as they perceive Internet as amedium that enhances theoutcome of their shopping experience inan easy way.Childerset al. (2001) found “enjoyment” to be a consistent and strongpredictor of attitude toward onlineshopping. If consumers enjoytheir online shopping experience, they have a more positiveattitude towardonline shopping, and are more likely to adopt theInternet as a shopping medium.Vijayasarathy and Jones (2000)showed that Internet shopping convenience, lifestyle compatibilityandfun positively influence attitude towards Internet shopping andintention to shop online.Despite the perceived benefits in onlineshopping mainly associated with convenience and enjoyment,therea number of possible negative factors associated with the Internetshopping experience. These includethe loss of sensory shopping orthe loss of social benefits associated with shopping (Vijayasarathyand Jones,2000).In their research, Swaminathanet al. (1999) found that the lack of social interaction in Internet 9
  10. 10. shoppingdeterred consumers from purchase online who preferreddealing with people or who treated shopping as a social experience.3.PERCEIVED RISK IN ONLINE SHOPPINGAlthough most of the purchase decisions are perceived with somedegree of risk, Internet shopping isassociated with higher risk byconsumers due to its newness and intrinsic characteristicsassociated to virtualstores where there is no human contact andconsumers cannot physically check the quality of a productormonitor the safety and security of sending sensitive personal andfinancial information while shopping on theInternet (Lee andTurban, 2001).Several studies reported similar findings thatperceived risk negatively influenced consumers’ attitudeorintention to purchase online (Doolin, 2005; Liu and Wei, 2003;Van der Heidjenet al., 2003).Opposing results were reported in twostudies (Corbittet al., 2003; Jarvenpaaet al., 1999). The authorsfound that perceived risk of Internet shopping did not affectwillingness to buy from an online store. One of the reasons for thiscontradictory conclusion might be due to the countries analyzedrespectively NewZeeland and Australia where individuals could bemore risk-taken or more Internet heavy-users.IADIS International Conference e-Commerce 2005237In examining the influences on the perceived risk of purchasingonline, Pires at al. (2004) stated that noassociation was foundbetween the frequency of online purchasing and perceived risk,although satisfactionwith prior Internet purchases was negativelyassociated with the perceived risk of intended purchases, butonlyfor low-involvement products. Differences in perceived risk wereassociated with whether the intendedpurchase was a good orservice and whether it was a high or low-involvement product. Theperceived risk of purchasing goods through the Internet is higherthan for services. Perceived risk was found to be higher forhigh-involvement than for low-involvement-products, be they goods orservices.Various types of risk are perceived in purchase decisions,including product risk, security risk and privacyrisk.Product risk is 10
  11. 11. the risk of making a poor or inappropriate purchase decision.Aspects involving productrisk can be an inability to compare prices,being unable to return a product, not receiving a product paidforand product not performing as expected (Bhatnagaret al., 2000; Jarvenpaa and Todd, 1997; Tan, 1999;Vijayasarathyand Jones, 2000).Bhatnagaret al. (2000) suggest that the likelihood of purchasing on theInternet decreases with increasesin product risk.Other dimensionsof perceived risk related to consumers’ perceptions on the Internetas a trustworthyshopping medium. For example, a commonperception among consumers is that communicating creditcardinformation over the Internet is inherently risky, due to thepossibility of credit card fraud (Bhatnagaret al.,2000; George, 2002; Hoffmanet al., (1999); Jarvenpaa and Todd, 1997; Liebermann andStashevsky, 2002).Previous studies found that beliefs abouttrustworthiness of the Internet were associated withpositiveattitudes toward Internet purchasing (George, 2002;Hoffmanet al., (1999); Liebermann and Stashevsky,2002).Privacyrisk includes the unauthorized acquisition of personal informationduring Internet use or theprovision of personal informationcollected by companies to third parties.Perceived privacy riskcauses consumers to be reluctant in exchanging personalinformation with Webproviders (Hoffmanet al., 1999). The same authors suggest that with increasing privacyconcerns, thelikelihood of purchasing online decreases. Similarly,George (2002) found that a belief in the privacy of personalinformation was associated with negative attitudes toward Internetpurchasing 11
  12. 12. 4. Previous online shopping experiencesPast research suggests that prior online shopping experiences havea direct impact on Internet shoppingintentions.Satisfactoryprevious experiences decreases consumers’ perceived risk levelsassociated with onlineshopping but only across low-involvement goods and services (Monsuwé et al., 2004).Consumersthat evaluate positively the previous online experience aremotivated to continue shopping onthe Internet (Eastlick and Lotz,1999; Shimet al ., 2001; Weber and Roehl, 1999).5. CONCLUSIONRelying on an extensive literature review this paper aims to identifythe main drivers of online shopping andthus to give further insightsin explaining consumer behavior when adopting the Internet forbuying as thisissue is still in its infancy stage despite its majorimportance for academic and professionals.This literature reviewshows that attitude toward online shopping and intention toshop online are not onlyaffected by perceived benefits andperceived risks, but also by exogenous factors like consumertraits,situations factors, product characteristics, previous onlineshopping experiences.Understanding consumers’ motivations andlimitations to shop online is of major importance in e-business formaking adequate strategic options and guiding technological andmarketing decisions in order toincrease customer satisfaction. Asreported before consumers´ attitude toward online shopping isinfluencedby both utilitarian and hedonic factors. Therefore, e-marketers should emphasize the enjoyable feature of their sites asthey promote the convenience of shopping online. As personalcharacteristics also affect buyers´attitudes and intentions to engagein Internet shopping e-tailers should customize customers´treatment.Furthermore, e-vendor should assure a trust-buildingrelationship with its customers to minimize perceivedriskassociated to online shopping. Adopting and communicating a clearprivacy policy, using a third partyseal and offering guarantees aremechanisms that can help in creating a reliable environment.Somelimitations of this study must be pointed out as future avenues forfuture research. The factorsidentified as main drives of shopping 12
  13. 13. online are the result of a literature review and there can alwaysbefactors of influence on consumers´ intentions to shop on theInternet that are not included because they areaddressed in otherstudies not included in this review. However there aremethodological reasons to believethat the most relevant factorswere identified in this context. A second limitation is that this paperis the resultof a literature review and has never been tested in itsentirety using empirical evidence. This implies thatsome cautionshould be taken in applying the findings that can be derived fromthis study. Further research isalso needed to determine which ofthe factors have the most significant effect on behavioral intentionto shopon the Internet. 13
  14. 14. Research MethodologySample SizeThe number of survey conducted was 35. The survey wasadministered to consumers both males and females from the ageframe of 16years to 55years. It catered to people living in Mumbai,Pune and Gujarat.Sampling TechniqueThe technique used is Convenience Sampling looking at the samplesize and considering the scope of survey.Primary DataThe data used in the survey was the primary data which wascatered to the consumers by using the questionnaire method. Thedata was administered in an electronic format.Secondary DataSecondary data was collected for the purpose of review ofliterature where data from previous studies was collected for thepurpose of reference and framing the survey outline. 14
  15. 15. Data Analysis 15
  16. 16. 16
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  19. 19. Findings35 surveys were filled, out of which 22 were female and 13 weremale.39% people shop their apparels from retail shops, 58% from mallsand only 3% shop from online websites.55% people choose brand as their parameter, 39% choose priceand 6% go on the location of the store or mall.Out of the total percentage of people surveyed 52% are brandconscious and the remaining are not.55% people do their apparel shopping monthly, the most of whichare females, 42% do it every six months and 3%do it once a year,most of which are males.64% people say that online shopping is safe and remaining say no.61% people think that online shopping doesn’t give them goodvariety of clothes.88% people choose shopping from retail stores over onlinewebsites.45% of the people think online websites offer better price range forshopping.27% people think that the variety offered is too less by onlinewebsites for apparels.28% people think that the websites offer very few options for sizes.52% of the people think that online shopping is affecting the salesof retail stores. 19
  20. 20. RecommendationsOnline shopping is the new mode of shopping which is very upcoming and is going to be the future of shopping.There has to be an increase in awareness of people about theonline shopping websites, their products and the safety in buyingfrom internet.There have to be proper cyber laws to protect the interests of theconsumers.The retailers have to come up with better discount offers and newschemes to attract people so that their sales are not affected.They need to have more price range of products and should keeptheir customers updated about the fashion currently.If people would like to spend a day with their family out of theentire busy month nothing is as good as retail shopping, where theentire family is bonded again. 20
  21. 21. ConclusionsMost of the youth prefer online shopping and the adults preferretail shopping. Youth find it very easy and convenient to swipetheir credit cards than actually remove one whole day out of theirholiday or work schedule to actually go and shop for their apparels.Youth are more brand conscious about the brand what they wearand how much they bought it for. On the other hand adults areshop loyal. They trust the owner of the shop very much as theyhave been buying clothes from there since a long time. The ownerof the shops also knows his customer well so they do not hesitatein giving discounts.People are still not very inclined towards online shopping. They donot feel its very safe and is a good way of shopping.They consider shopping as a fun thing so they wish to go out to theretail stores try some clothes see if they look good in it, if the cloursuits them and material is good only then they choose to buy it.But slowly and steadily even online shopping is gaining importanceas it is the upcoming market in today’s world. People don’t have tostand in long lines, wait for their turn in the retail stores and thenbuy clothes. They can easily sit at home choose the latest apparel invogue and the order is delivered at their door step.Retail outlets need to come up with a better price range and goodvariety of clothes if they wish to be in competition with the onlinewebsites.Retail shopping and online shopping have been the revolution inthe shopping era. 21
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