Online Shopping

Topics: Online shopping, Electronic commerce, Amazon.com Pages: 13 (3077 words) Published: August 28, 2013

ASSIGNMENT NO.1

FACTORS AFFECTING CONSUMER BEHAVIOUR WHILE SHOPPING ONLINE

SUBJECT CODE :- MGN504

SUBMITTED BY-

PRIYANJALI SRIVASTAVA

REG. NO. - 11200674

MBA(Q1202)

ABSTRACT

This study examines online search pattern and buying behaviour of consumers. People/customers search moderately for product/service information with company websites being the most popular mode of searching. Books, airline and railway tickets, hotel booking, apparel purchase are the products and services commonly purchased to satisfy self-fulfillment and affiliation needs. Respondents who have online purchase experiences have a higher intention to make online purchase in the future. There is no gender difference in terms of the frequency of online search and purchase as well as the type of consumer needs being satisfied over the Internet. Implications of the research findings and suggestions for future research are discussed. This study attempts to analyze the features related to the buying behaviour of online shoppers. Consumer buying behaviour in respect of online shopping was studied using different socio-economic variables. It also provides a support that helps researchers understand the drivers of consumers’ attitude and goal to shop on the Internet, and consumers’ perceptions regarding ease of use and usefulness.

Consumers are playing an important role in online shopping. The increasing use of Internet by the younger generation in India provides an emerging prospect for online retailers. If online retailers know the factors affecting Indian consumers’ buying behaviour, and the associations between these factors and type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones.

INTRODUCTION

There has been a rapid growth in the use of Internet since its introduction in the early 1980s. The Internet has grown tremendously in both its applications and number of users mainly due to its unique characteristics of flexibility, interactivity, and personalisation. It has been a very useful tool for communication, entertainment, education, and electronic trade. With the increased Internet access both at home and in schools, the number of Internet users will continue to grow.The revolutionary change brought forth by the computer and information technology has an important impact on consumers’ daily lives. On the business side, the Internet has transformed the way businesses are run. It allows retailers to offer an unlimited range of products and services to all consumers from around the world at any point in time. It is deemed to be the most significant direct marketing channel for the global marketplace.

On the consumer side, the Internet has given consumers more control in accessing information on products and services. Consumers pull for online content—they decide when, where, what, and how much commercial content they wish to view. The Internet enables consumers to access a wide range of products and services from companies around the world, and it has reduced the time and effort that they spend on shopping .Consumers play a much more active role in searching for information online to accomplish a certain purpose or goal. They access the Internet with that goal in mind, and that goal can influence individual behaviours and responses to online information. Consequently, researchers should explore why people go online and what activities they do online .Given the significant growth and optimistic outlook for the future of online shopping, it is important to examine consumers’ behaviours in relation to online purchase. The present study attempts to investigate consumer online behaviours in India.

The report by Internet and Mobile Association of India ( IAMAI) said, "the number of claimed Internet users has...

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