[Home] [Current Edition] [Compendium] [Forum] [Web Archive] [Email Archive] [Guestbook] [Subscribe] [Advertising Rates]
Impact Of Demographics On The Consumption Of Different Services Online In India
Journal of Internet Banking and Commerce, December 2006, vol. 11, no.3 (http://www.arraydev.com/commerce/jibc/)
A M Sakkthivel, Assistant Professor â€“ Marketing Area, Loyola Institute of Business Administration (LIBA), Loyola College, Chennai, India.
Email: email@example.com, firstname.lastname@example.org
Dr. A M Sakkthivel is an Assistant Professor of Marketing with Loyola Institute of Business Administration (LIBA), Loyola College, Chennai. India &Â Recognised PhD supervisor for Madras University, India.Â His research interests are Consumer Behavior on Internet Purchase, Post Purchase Behavior, Cyber-Marketing, Virtual Marketing Mix, Virtual Behavioral Process, Gauging Brand Loyalty and Modeling Rural Buyer Behavior, Mathematical Modeling (Metrics)
The role of Internet is becoming inevitable to corporate and society. Across the world, governments and corporate are increasingly working towards the better utilization of the internet. The Internet which was initially perceived as a communication media is now metamorphosing into a powerful business media. The late 20 and early 21st century witnessed the entry and exit of the dot.com companies. The internet motivated many brick & mortar companies to use the Internet to sell products/services online and found negative outcomes as the companies failed to understand the internet buyer behavior and could not figure out the categories of services the Internet users intend to buy. In offline marketing, demographics plays a vital role in understanding buying behavior of consumers belong to different segments which would enable companies to develop products/services according to their specific requirements. Internet is a medium which does not offer this luxury to companies to know the profile of Internet users as it is an indirect medium. The companies would do well if they could find the demographic profile of Internet users which would help them devise strategies accordingly. Hence, the author conducted an extensive primary research in Bangalore, India (Silicon Valley of India) in order to identify the willingness of Internet users to buy different services over Internet. The paper aims at providing a specific focus to identify the impact of demographics in influencing Indian Internet users in consuming different services online. The outcomes would help the corporate world to understand the importance of demographics on online purchase which could be adopted and deployed for better use.
The UCLA report identified that one of the most advertised products of 1999 and 2000 over Internet were online brokerage services and three-fourths of population that bought and sold services had some form of Internet access. The study revealed that the Individuals with Internet access did more trade per year than individuals who had Internet access (2.3 times) (UCLA, 2000). The above study shows the services are gaining momentum over internet. This could be supported by the yet another study conducted by UCLA in 2001 showed that the Internet users feel at ease to avail services online as it does not need the tangible purchase execution required for product purchase and also revealed that 20% of the respondents avail travel services online (UCLA, 2001). The paper attempts to identify the influence of demographics in consuming different services online. This is supported by the study conducted by Mckinsey revealed that the consumers those who consumed services online were young, well-educated and richer than average and different demographic variables viz. age, employment status, family role, house hold structure played a vital role in consuming Pay-TV services. It also indicated that the income and gender had least impact on consuming the...
References: Aldridge, A., Forcht, K. and Pierson, J. (1997), â€œGet linked or get lost: Marketing strategy for the Internetâ€ , Internet Research, Vol.7, No.3, pp.161-169.
Ernst and Young (1999), â€œThe Second Annual Ernst and Young Internet Shopping Studyâ€ , New York.
Flynn, L.R. and Goldsmith, R.E. (1993), â€œApplication of the Personal Involvement Inventory in Marketing,â€ Psychology and Marketing, Vol.10, No.4, pp.357-366.Modahl, M. (2000), Now or Never, New York: Harper Business.
Goldsmith, R.E. (2001), â€œUsing the Domain Specific Innovativeness Scale to identify innovative Internet consumers,â€ Internet Research: Electronic Networking Applications and Policy, Vol.11, No.2, pp.149-158.
Goldsmith R. E. (2002), â€œExplaining And Predicting Consumer Intention To Purchase Over the Internet: An Exploratory Studyâ€ , Journal of Marketing THEORY & PRACTICE, Spring, pp.23-38.
Goldsmith, R.E. and Bridges, E. (2000), â€œE-tailing Versus Retailing: Using Attitudes to Predict Online Buying Behavior,â€ Quarterly of Electronic Commerce, Vol.1, No3, pp.245-253.
Hogg, M.K., Bruce, M. and Hill, A.J. (1998), â€œFashion brand preferences among young consumersâ€ , International Journal of Retail and Distribution Management, Vol.26, No.8, pp.293-300.
Hutt, Eduardo, Lebrun, Robert, and Mannhardt, Thilo. (2001), â€œSimplifying Web segmentationâ€ , The McKinsey Quarterly, No.3.Silverman, D. (2000), â€œMore women wardrobe online than everâ€ , Womenâ€™s Wear Daily, 31 July, p.20.
Katz, J. and Spden, P. (1997), â€œMotivations for and barriers to Internet usage: results of a national pubic opinion surveyâ€ , Internet Research, Vol.7, No.3, pp.170-188.
Kierzkowski, Alexa et al. (1996), â€œMarketing to the digital consumerâ€™, The McKinsey Quarterly, No.2, pp.180-183
Kwak, H, Fox, Richard J
Modahl, M. (2000), Now or Never, New York: Harper Business.
UCLA Internet Report (2000), â€œSurveying the Digital Futureâ€ Â Â .
UCLA Internet Report (2001), â€œSurveying the Digital Futureâ€ Â Â .
UCLA Internet Report (2002), â€œSurveying the Digital Futureâ€ Â Â .
UCLA Internet Report (2004), â€œSurveying the Digital Futureâ€ Â Â .
UCLA Internet Report (2005), â€œSurveying the Digital Futureâ€ Â Â .
Please join StudyMode to read the full document