Your SlideShare is downloading. ×
Consumer motivation on online shopping
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Consumer motivation on online shopping

4,662

Published on

The number of Internet users is growing, but only small part of them buys products/services online. The objective of the paper is to highlight the factors that are meaningful to consumer motivation to …

The number of Internet users is growing, but only small part of them buys products/services online. The objective of the paper is to highlight the factors that are meaningful to consumer motivation to shop online. The results of literature analysis show that there are three groups of factors effecting online shopping: 1) perceived characteristics of the Internet as a sale channel, 2) consumer characteristics and 3) characteristics of the product. However, the significance of the factors depending to these groups is mixed or not clearly reported. The results from the empirical study show that the convenience makes the most important influence on consumers who shop online. While the limited abilities to get acquainted with a product/service by means of senses is the most important factor why consumers resist shopping online.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
4,662
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
355
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ABSTRACT. The number of Internet users is growing, but only small part of them buys products/services online. The objective of the paper is to highlight the factors that are meaningful to consumer motivation to shop online. The results of literature analysis show that there are three groups of factors effecting online shopping: 1) perceived characteristics of the Internet as a sale channel, 2) consumer characteristics and 3) characteristics of the product. However, the significance of the factors depending to these groups is mixed or not clearly reported. The results from the empirical study show that the convenience makes the most important influence on consumers who shop online. While the limited abilities to get acquainted with a product/service by means of senses is the most important factor why consumers resist shopping online. INTRODUCTION. Internet is a global system of interconnected computer networks that serve billion of people worldwide. It is a network that consist of millions of public, private , academic and business and government networks from being local to a worldwide scope. The internet carries a vast range of information resources and services . The number of internet users in India is continuouslygrowing . The statistics goes by saying that India is the 5th largest internet user population after USA, CHINA and GERMANY . When it comes to online buying and internet usage it accounts for 60 million in India. Online shopping is referred to as E-COMMERCE.Online shopping could be defined as the concept of buying and selling of goods over the internet. Online shopping emerged with the development of the internet. Entrepreneurs saw the potential in online shopping and sprung at the chance to make virtual storefronts, so that consumers could shop without leaving their homes.The rapidly growing Indian economy is catching the attention of local as well as global retailers and thereby unlocking the doors for new genres of online consumer research. The growth of the internet presents a huge opportunity to online retailers to capture a considerable share of sales. In this context it is important to understand the factors that motivate Indian consumers to indulge in online buying; in fact the drivers, enablers and the inhibitors, all need to be identified and addressed. A framework is needed to structure the complex system of effects of the demographic, 1
  • 2. psychographic and situational factors that impact a consumer's decision to shop online, and develop an in-depth understanding of consumers' motivation to shop online.. The mode of payment is through credit card or pay pal account which is commonly used by online shoppers. With the advent of online shopping we can get easy accessibility to goods sitting at one place making it more convenient than shopping going shop to shop. Online shopping won million of hearts across the world with the availability of internet at almost in every house in India saving a lot of time and transportation cost. What motivates internet users to buy online? Consumer shopping motivation in the context of online has been well researched. Numerous consumer needs such as browsing and searching for products, ease and convenience, obtaining information about firms, products and brands, comparing product features and prices, shopping 24/7, having fun and excitement, maintaining anonymity while shopping for certain products, are all fulfilled more effectively and efficiently than conventional shopping. In fact, the benefits that consumers derive out of the online shopping experience are two fold, namely, functional and utilitarian dimensions, like “ease of use” and “usefulness”, or emotional and hedonic dimensions like “enjoyment”; . Such factors are moderated by exogenous factors like “consumer traits”, “situational factors”, “product characteristics”, “previous online shopping experiences” and “trust Sheth (1983), has referred to two broad classes of motives that underlie shopping, namely, functional and non-functional, the latter also having been mentioned by Tauber (1972). With convenience, price, product variety and product access as major motives in the context of online shopping, the functional aspects of shopping motivation have been stressed upon. However the non-functional motives of online shoppers have also been researched upon by studying the individual buyer's personal and social motives (Eastlick and Feinberg, 1999; Parsons, 2002). Suki et al. (2001), speaks of user's motivation and concerns for shopping online and mentions motivation factors like accessibility, reliability, convenience, distribution, socialization, search ability and availability; among issues of concern are privacy, reluctance to change, quality, security, trust, connection speed and non-disclosure of complete product 2
  • 3. information. Rohm and Swaminathan (2004), speak of a typology among consumers, based upon their motivation for shopping online; namely, online convenience (convenience shoppers), physical store orientation (variety seekers), information us in planning and shopping (balanced buyers), and variety seeking in the online shopping context (store oriented shoppers). Swaminathan et al. (1999), refer to the convenience factor, i.e. being able to shop 24/7 from one's home as the most compelling motivation. While the Technology Acceptance Model (TAM) (Davis, 1989; Davis et al., 1989), explain easy adoption through website characteristics and purchase intentions, Lee et al., 2007 propose an e-Com adoption Model that include “perceived ease of use, perceived usefulness, perceived risk with products and services, and perceived risk in the context of online transaction”. REVIEW OF LITERATURE. In recent years, online user has increased to a larger amount and gained lot of popularity through social marketing and online marketing. Analysts opine that different people from different place can get instant access to information at any time and place. The adoption of internet has been exceptionally rapid in many parts of India.The online market for personalised goods is over Rs 200 crores. The concept of the internet present a huge opportunity to online retailer to capture considerable context to understand the factor that motivates Indian consumers to indulge in online buying. Research that has been already taken provides the impact on the way ideas are formed and knowledge is created. Research paper tell us about the strength which includes speed, immediacy and superior value of the internet. Internet helps in developing an insight into how consumers trade off among available attributeswhile selecting an online user. It alsoprovides concrete information about the specific attributes to be incorporated into internet services, as per customer’s 3
  • 4. preferences.Unlike past focus on the self-elicitation of theimportance of internet services, this study uses awell-established methodology to derive therelative importance accorded to the identified salient attributes about the motivation technique. The rapid proliferation of online usage and creation ofa new channel for marketing. The use of online services through smart phones has increased the popularity, making the internet theultimate medium for one-to-one marketing. The present research investigates consumermotivational level online usage by internet user and the relationship between attitude and behaviour. Determinants of consumer motivation to buying online: Pragmatic motivation: The first and foremost thing that drive customers to go for online shopping is "convenience", which can be in any form like time, place and the whole buying process. From previous studies it has been seen that consumers are preferring to go online shopping because they are free to enjoy window shopping without having the pressure of purchase on their mind. Online shopping also gives a readymade platform to the buyers to collect various prepurchase information and other search activity. From past studies it has been said that information about a product drives a customer to go for online shopping. Services tend to be more informative than product oriented. The perception that online buying is easier and involve minimum effort also has a significant and positive impact on consumers mind.According to the Technology Acceptance Model, the easier and useful a technology is, the more likely are consumers to get motivated to use online technology. Hassle reduction, motivations inspire consumers to buy online because it is comparatively trouble free. Online buying is free from hassles of taking out time for marketing, dressing up to go to market, driving, traffic jams, crowd and finding a place for parking. There is also no hassle of transporting the goods purchased as internet vendors provide home delivery of products purchased online. 4
  • 5. Product motivation: Lack of availability of products also drives customers to go for online shopping. In Products like CDs, books and air tickets consumers are more likely to go for online shopping with no fear and apprehension about the need to feel, try, smell or touch the product. High level of customization is also being offered to the customers with huge price discounts and which is not possible in normal buying process. The internet provides a platform to view products with detailed information regarding competitive prices from international locations and thereby help consumers in learning about new trends. Consumers can also interact with user groups and find out about latest fads and fashion. A consumer’s motivation to shop online can be for various reasons, such as Utilitarian Motive or problem solver. While some internet buyers consider shopping activity as work, other finds it enjoyable and seeks it for entertainment. Some customers prefer to shop and browse on the internet due to the fun, enjoyment and excitement involved, that is the emotional and hedonic pleasures, either as individuals or as social groups. Service excellence motivation Service excellence is the factor that motivate a buyer to go for online shopping. This is the factor that attract customer and each and every day the number of customer are improving because of improvement in services. This might be promises in terms of price, timely delivery of products in good condition, cash on delivery,reliability factors such as clearly stated freight charges, clearly stated product charges. Demographic motivation Demographic parameters are another factors that motivates customer to go for online shopping. Study suggest that different demographic factors like Age,Income,and Education that make customers inclined toward online shopping. Young professional with high income group are directly related with online buying. Social Motivation From the study we come to know that online buyer are getting influenced by their social environment. Buying decisions are mainly influenced by people living around the buyer like 5
  • 6. Supportive social environment, perceived norms, family and friends. Human beings acquire new behaviour by observing others. Situational Motivation Consumers with hectic time schedule are more tend to buy online because it saves time. Situational factors such as time pressure, geographical distance, lack of mobility, attractiveness of alternatives and need for special items positively influence online buying of consumers. who are immobile can also shop online. Furthermore, there is no need to travel long distances for shopping. The need for special items which are generally not available in local markets also drives consumers to buy online. RESEARCH METHODOLGY. The aim of this research is to examine factors that motivate or de motivate respondents to shop online. The study population is members of academic community. The sampling methods – convenience sample. The questionnaires were distributed by e-mails, through our friends &acquaintances, we distributed questionnaires to the undergraduates and graduate students interested in online shopping. We sent out questionnaires and received 150 in which ineffective or wrong-written questionnaires are duly rejected.The primary data we have collected through some face to face interaction and online distribution of questionnaires and the secondary data is collected from various journals, articles and other web based resources. The research is a pilot study, thus all findings are applicable only to the study sample.The questionnaire included four diagnostic blocs: 1) gathered information about the type of online consumers based on their behaviour (an online shopper or an information searcher), 2) collected information about the factors that motivate to shop online, 3) collected information about the factors that de motivate to use the Internet as means for product/service purchasing, 4) comprised questions on demographic characteristics. Individuals were asked to indicate their agreement with motivation or de motivation items based on the five-point Likert-type scale from (1) strongly disagree to (5) strongly agree. 6
  • 7. The data were analysed using the SPSS 16.0 statistical package. We used the following methods: 1) descriptive statistics, 2) high-abstraction statistics: factor analysis was used to identify motivation or de motivation dimensions to shop online. FINDINGS &CONCLUSIONS Some of the major findings are:  Online shopping saves time.  Safe and secure transactions.  Availability of merchandise on internet is very broad.  Internet reduces the monetary cost and traditional shopping to a great extent. The outcome of this proposed research agenda will present an enhanced knowledge of online shopping consumers and understanding of their purchasing behaviour towards a product. This will in turn provide consumers with great potential to optimise their buying behaviour online, which will make an important breakthrough and will affect the consumer motivational factors towards online shopping. 7
  • 8. Online Shopping Name? Age? Sex? (Tick the appropriate box) o Male o Female Education Qualification? (Tick the appropriate box) o Secondary o Higher Secondary o Graduation o Post-Graduation o Others Where do you mostly use the Internet? (Tick the appropriate box) o At home o At work o At College/School o Others What is your main purpose for using the Internet? (Tick the appropriate box) o Shopping o Work o Education What kind of information do you look for on the web when selecting a product/service? (Tick the appropriate box) o Detailed information o Price comparisons o Location of store o Availability of product/service o Other information
  • 9. In general, you prefer to do your shopping of: (Tick the appropriate box) Over the Internet Over the Phone In a Retail Store Jewelry Airplane Tickets Cinema/Concert/Theatre Ticket Computer Products Clothes Furniture Toys CD/DVDs Books Cosmetics Fast food Groceries Have you been expose to online shopping? (Tick the appropriate box) o Yes o No How many times you go for online shopping in a month? (Tick the appropriate box) o Once o Twice o Thrice o More than thrice
  • 10. What situational factors drive you to go for online shopping? (Tick the appropriate box) o Hectic time schedule o Frequent travelling o Need for special items o Previous shopping experience o Others What are the preferred sites you choose? (Tick the appropriate box) o Flipkart o Snap deal o Mantra o eBay o Amazon o Others Services you expect from online retailers? (Tick the appropriate box) o First delivery o Replacement guarantee o Cash on delivery o Others How does competitive pricing and discounts motivate you to do online shopping? (Use the 1 – 5 scale below) 1 Highly effective Select a value from a range from 1,Highly effective, to 4 ,No t effective,. 2 3 4 5 Not effective
  • 11. Please select your level of agreement to the following questions. (Tick the appropriate box) Strongly Disagree I think shopping on the internet saves time. It is a great advantage to be able to shop at any time of the day on the internet. It is more difficult to shop on the internet. I prefer traditional/conventional shopping to online shopping. Shopping online is risky. I believe online shopping will eventually supersede traditional shopping. I will prefer online shopping only if online prices are lower than actual price, A long time is required for the delivery of products and services on the internet Selection of goods available on the internet is very broad, The description of products shown on the Disagree Indifferent Agree Strongly Agree
  • 12. Strongly Disagree Disagree Indifferent Agree Strongly Agree web sites are very accurate, The information given about the products and services on the internet is sufficient. Online shopping is as secure as traditional shopping, While shopping online, I hesitate to give my credit card number, Internet reduces the monetary costs of traditional shopping to a great extent (parking fees etc.) The fact that only those with a credit card or bank account can shop on the internet is a drawback, I would be frustrated about what to do if I am dissatisfied with a purchase made from the internet. ………......................................................................Thank You……………………………………………………………………………
  • 13. Bar Chart
  • 14. 46% respondents use internet at home.
  • 15. When we ask the respondents, what they really do on internet 52% said they search information related to studies and 44% do shopping.
  • 16. When asked while selecting a product or information what they mainly do on internet, 43.02% look for detailed information and 29.61% compare price of the product and information.
  • 17. In general, you prefer to do your shopping Our findings found that 67% prefer traditional shopping than online shopping (30%).
  • 18. When asked what type of products/services they mainly shop online 24.79% book Airline ticket, 21.49% book cinema/theatre tickets and 13.50% shop books.
  • 19. 30.30% order fast food and 27.27% book cinema ticket over the phone.
  • 20. 12.06% visit retail store for buying furniture, 11.69% buy jewelry, 11.57% buy groceries and 11.44% buy cosmetic by visiting retail store, because Indian customers have a high involvement.
  • 21. 93% respondents have expose to online shopping.
  • 22. 52% shop online once a month and 23% shop more than thrice a month.
  • 23. 33.07% respondents said they prefer online shopping due to hectic time schedule and 36.22% respondents said due to need for special items.
  • 24. From the above graph we can interpret that Flipkart got maximum number of responses. That about 36.41% people are using Flipkart for online purchase because of esteem needs are getting fulfilled.
  • 25. From the above graph 36.31% respondent want fast delivery as a services from online retailer whereas 28.49% & 29.05% goes with replacement guarantee and cash on delivery resp.
  • 26. From the graph 53% of the respondent says that competitive pricing and discount highly effective in motivating to do online shopping because it satisfy the self-actualization needs of the respondent
  • 27. From the graph 39% & 36% of the respondent think that shopping in the internet saves times because of the accusation need get fulfilled
  • 28. 44% strongly agree that through online shopping they can shop anytime from anywhere.
  • 29. 58% of the respondent say that the do not find it is difficult to shop on the internet.
  • 30. 41% have mix response both traditional and online shopping have an importance.
  • 31. 34% disagree and 33% have mis response that online shopping is not risky.
  • 32. 27% have mix response, 25% agree and 20% strongly agree online shopping will supersede traditional shopping.
  • 33. 34% agree and 27% strongly agree that they prefer online shopping when prices are low.
  • 34. 35% of the respondents have a mix response, 21% disagree and 22% agree. This show that delivery time depends on geographic location.
  • 35. According to the survey 42% people think that there is a wide range of goods available for selection
  • 36. According to the survey 42% people think that there is a wide range of goods available for selection
  • 37. According to the survey we can say that people are neutral to the statement that description of products shown is very accurate.
  • 38. Here in the above fig we can say that people agree as they believe that products and services on the internet are sufficient.
  • 39. From the above fig we interpret that 38% people agree to the fact that online shopping is as secure as traditional shopping.
  • 40. From the above graph we can interpret that people mostly people are neutral to the fact that people hesitate to give the card number for online shopping.
  • 41. According to the survey 35% people agree to the statement that internet reduces the cost of traditional shopping
  • 42. From the above fig we can interpret that mostly people agree to the fact that only with a credit card or a bank account can shop on the internet is with 30 %.
  • 43. Here by conducting the survey we can interpret that 58% people are neutral to the point that they are dissatisfied with the purchase made from the internet.

×