Consumer behavior in e-commerce based on a survey

1. CONSUMER BEHAVIOUR IN
E-COMMERCE

2. OBJECTIVES OF THE STUDY
• To find out the influence of perceived risk on online purchases
• To understand the level of satisfaction in the case of online consumers

3. STUDY DESIGN
• Cross-sectional study: Aimed at finding out the online shopping behaviour
of ecommerce customers by taking a snap-shot or cross-section of the
population
• Obtain an overall picture as it stands at the time of the study

4. KEY VARIABLES
• E- satisfaction
• Perceived Risk

5. METHODOLOGY
• Random sampling method of approximately 160 respondents
• Primary data is to be collected from the respondents with the help of a
structured questionnaire.

6. RESULTS & KEY FINDINGS
HAVE YOU EVER SHOPPED
ONLINE?
Yes No
96%
4%
Pursuing Graduation
3%
Pursuing Post-
Graduation
21%
B.Tech. / B.E.
Others
1%
EDUCATIONAL BACKGROUND
B.Com. 33%
14%
B.Sc.
1%
B.A.
4%
M.Sc.
1%
Ph D
4%
MBA / PGDM
18%

7. Student
65%
Supply Chain /
Operations
Sales & Marketing
Insurance
5%
Core Engineering
(Mechanical, Civil,
Chemical, Power,
Production etc)
5%
IT / Software
10%
Academics / Teaching
4%
1%
Accounting /
Finance / Auditing
4%
Human Resources (HR)
1%
1%
Analytics
3%
Government
Service
1%
PROFESSION
HAVE YOU EVER SHOPPED ONLINE?
Yes No
Yes
96%
No
4%

8. FIRST ONLINE SHOPPING EXPERIENCE
Rating of 1st online shopping
3%
5%
14%
50%
28%
experience
1 2 3 4 5
First Online Purchase
4% 8%
30%
52%
6%
Before 2006
2006-2007
2008-2010
2011-2013
2014

9. HURDLES FACED
26%
41%
65%
4%
70%
60%
50%
40%
30%
20%
10%
0%
No credit card / online banking
option
Low Trust / High Risk Doubts (Quality, Size, etc.) Other

10. CAUSES FOR OVERCOMING HURDLES
0% 10% 20% 30% 40% 50% 60%
Other
Made a purchase where the money lost would be small
Necessity - something wasn't available offline
Word of Mouth - I heard positive feedback
Got to know about Cash On Delivery (COD)

11. REGULARITY IN SHOPPING
REGULARITY IN ACTUAL
REGULARITY IN WINDOW SHOPPING
PURCHASES more than once
As needed
59%
Once a week
Once a month
28%
5%
Once in few
days
8%
a day
9%
once a day
21%
2 -3 times a
week
40%
don't browse if I
don't want to
purchase
30%

12. REASONS FOR BUYING ONLINE
Well defined refund and
return policies
1, 24%
2, 19%
5, 16%
4, 16%
3, 25%
Wide choice of products
1, 30%
2, 18%
5, 20%
3, 11%
4, 21%
Home delivery makes
it convenient
1, 39%
5, 25%
4, 15%
3, 8% 2, 14%
Time convenience
1
35%
2
3 11%
15%
5
23%
4
16%
Discounts make the product
1
25%
2
5
18%
3 23%
11%
4
23%
cheaper
Convenient payment
1
31%
2
5
19%
3 15%
14%
4
21%
options

13. REASONS FOR HESITATION IN
ONLINE PURCHASES
34%
60%
64%
10%
19%
70%
60%
50%
40%
30%
20%
10%
0% 1%
Not getting the
product at the time of
the purchase
Touch and Feel
Factor
Size, Quality and
Color issues
Prefer the experience
of offline buying
Risky credit card
purchase
Other

14. AMOUNT THAT YOU ARE WILLING TO SPEND PER TRANSACTION
Less than Rs 500
Rs 501- Rs 1000
38%
Rs 5001- Rs 10000
15%
Rs 1001- Rs 5000
36%
More than Rs
10000
8%

15. SAFETY OF SHOPPING ONLINE
0% 10% 20% 30% 40% 50% 60% 70%
UNSAFE
SAFE
DEPENDS ON THE SITE

16. REASONS FOR FEELING UNSAFE
0% 20% 40% 60% 80% 100% 120%
5
4
3
2
1
1 2 3 4 5
Unsecure payment 31% 6% 26% 13% 24%
Do not want to give my personal information 23% 20% 19% 20% 19%
Do not want the browser to track my current and
future usage
29% 11% 21% 19% 20%
Too many terms and conditions 18% 23% 20% 20% 20%

17. PREFERRED PAYMENT METHOD
46%
Cash on Delivery
13%
8%
13%
20%
1 2 3 4 5
25%
20%
15%
10%
5%
0%
Net Banking
20% 20%
25%
18% 16%
1 2 3 4 5
30%
25%
20%
15%
10%
5%
0%
20%
Debit Card
30%
16% 16% 16%
1 2 3 4 5
30%
25%
20%
15%
10%
5%
0%
13%
Credit Card
10%
25% 26% 25%
1 2 3 4 5
30%
20%
10%
0%
14%
E- Wallet
20%
15%
23%
28%
1 2 3 4 5

18. PURCHASE INTENTION
DEPENDENT ON SELLER
Yes, 59%
Doesn't
matter,
24%
No, 18%
RATING
MOST FREQUENTLY PURCHASED
PRODUCTS
Books, 40%
Electronics, 54%
Clothing &
Accessories
17%
Movies, Music &
Video Games
4%
Other
0%
Mobiles &
Tablets
9%
Computers &
Accessories,
31%
Watches &
Fashion
Jewellery
6%
Beauty,
Health &
Gourmet
4%
Sports,
Fitness &
Outdoors,
18%
Toys & Baby
Products
Cameras,
Audio / Video
Instruments
4%
Home &
Kitchen
3%
2%
Handbags &
Luggage
6%
Shoes, 30%

19. LEARNINGS
• Comprehensive idea of online consumer behaviour
• Consumer preferences in terms of payment method, seller
ratings, etc.
• Consumer risk perception and popular reasons for hesitation in
purchasing online
• Tracking consumer behaviour since their 1st purchase

20. THANK YOU!!