Analysis of factors affecting Online Shopping
Submitted by -:
Pranav Sood 400907018
Amity Anand 400907031
Mehul Shukla 400907034
Indian consumers as a whole spend about 55% of the total consumption expenditure on food items. According to a survey conducted by ORG , the expenditure on non-food items has recorded large growth that the expenditure on food items. Consumers decide whether , what, when, from whom, where and How much to buy. They can avail various mediums to buy the products. But currently we are living in the age of internet. According to a study , “About 44 percent students use Internet in India and overall 72% of young people access Internet on regular basis. Due to the vast usage of Internet, the buying patterns have been changed. It has changed the way goods are purchased and sold, resulting to the exponential growth in the number of online shoppers. However , a lot of differences concerning online buying have been discovered due to the various consumers’ characteristics and the types of provided products and services.
Attitude toward online shopping and goal to shop online are not only affected by ease of use, usefulness, and enjoyment, but also by other factors like consumer individuality, situational factors, product distinctiveness, previous online shopping understanding and faith in online shopping. Therefore, understanding who are the ones consuming and why they choose to use or keep away from the Internet as a distribution channel, is a critical matter for both e-marketing managers and consumer thinkers. There are lots of companies which are providing the platform to consumers to buy the products through online. Online consumers tend to be better educated. Higher computer literacy makes internet shopping smarter. Their awareness about the internet also makes them better positioned to identify and take decision for products and services. By the internet, consumers find that they no longer have to accept fixed prices for the products and services and through the click of a few buttons the lowest priced, highest quality product can be found. The concept of online shopping developed gradually, after the launch of the World Wide Web.
Charles Stack was the first person to create an online book store in 1992. Even Pizza Hut opened an online pizza shop, whereas eBay and Amazon took the concept of online shopping to an entirely new level. Online shopping began in full swing since the year 1996.
Overall, 71 million users accessed Internet in year 2009, with 52 Million “active” users who accessed it atleast once in a month. The first benefit that a customer derives from e-retailing is convenience as it saves time and efforts for today’s time starved customer at the same time providing a plethora of choices for wide category of items and also the luxury of comparing the offerings from different vendors – all at the click of his mouse. Another most obvious benefit of online shopping is the significant discounts that most of these e-retailers provide to attract the customers. Also online stores are usually available 24 hours a day and not limited by global time differences. Searching or browsing an online catalog can be faster than browsing the aisles of a physical store. Along with information about a company and its products, buyers can also have better access to product review and rating systems. However, many people still locate information on the internet and purchase products offline at traditional stores, conversion rate being very low. Research shows that between 65% and 75% of consumers that initiate an online tran saction fail to complete the transaction.
Online shopping is the process consumers go through when they decided to shop on the Internet. The Internet has developed into a “new distribution channel (Hollensen. 2004) and the evolution of this channel has been identified by Smith and Rupp...