Online Shoppers Orientation Towards Functional and Luxury Goods

Topics: Online shopping, Electronic commerce, Shopping Pages: 25 (7005 words) Published: November 7, 2012
Online Shoppers Orientation Towards Functional and Luxury Goods: A study in Indian Perspective by
Ravi Kiran M, Rajat Saxena
Reddy YVS, Rohit Rai
Rahul Yadav, Rahul Gupta
Tarun Sahni

Submitted to
Prof. Anurag Dugar

Online shopping in India has been on a consistent rise since the last few years.. The purpose of this paper is to explore the various determinants of shopper behavior and to examine the influence of these factors towards willingness to buy online. The study is based on primary data collected from a sample of 285 respondents across various cities in India. A structured non-disguised questionnaire was administered and responses were measured on the five-point Likert scale. Statistical tools like descriptive statistics, chi-square, and ANOVA were used to find out the strength of relationship and degree of association among the variables entered into the model. The results reveal that convenience, better deals and ease of payment are the factors which are influencing the customers more to buy utilitarian goods online. For buying luxury goods online brand trust and authenticity, tangibility, genuinity of the product and replacement guarantee are the factors which are influencing customers not to buy online. The paper seeks to provide fruitful key insights into the factors determining the prospects of online shopping that can benefit academicians as well as marketers. Key Words: Consumer Behavior, Online Shopping, Trust, Convenience 1. Introduction:

India, the second most populated country in the world which had only 25k internet users in the year 1998 crossed 100 million users in 2011, despite poor internet penetration and sluggish internet speed, now India has more than 121 million internet users.

Along with internet, online shopping in India has been on a consistent rise since the last few years. With the advancement in IT, and increase in the total percentage of computer literate people in India, online shopping websites are well on their way towards a successful future. Not only in terms of customers, but in terms of sellers too. The opening up of various online shopping portals on the internet, has proved to be a boon, as of now they have access to a wider audience rather than to a limited petty market. The online channel is playing an increasingly important role in connecting retailers with potential customers in India.

A few years back, when online shopping was in its nascent stage, there were very limited sales as well as purchases on the online shopping arena. This was due to many reasons such as lack of internet friendly population, low penetration of computers and slow internet connections in India, low percentage of credit and debit cardholders, as well as non willingness of people to use their credit card on the internet due to the fear of being scammed.

But with the passage of time, this scenario has improved tremendously as people have started gaining confidence about purchasing products online. The advantages of shopping online, far outweigh the benefits of purchasing products from an offline market. Shoppers now have the option of browsing through a wide variety of products, rather than choosing a limited variety from a traditional market. Be it a bouquet of flowers or an expensive car, everything is available at the click of a mouse. Customers also get to save lot of time as they can shop anytime in the day, sitting in the comforts of their homes as the shopping websites are open all year round, 24hrs a day.

Consequently, online shopping trends are improving and promise a bright future. According to comScore Inc (NASDAQ: SCOR) report, a leader in measuring the digital world, nearly 60 percent of online users in India visited a online site in November 2011, with the number of online shoppers increasing 18 percent in the past year. eBay, which entered India in 2004, has now 23,000 sellers and about 3 million registered users in the country generated business of...
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