A STUDY TO DETERMINE IMPACT OF CREDIT CARD PURCHASE LIMIT & MODE OF PAYMENT ON E-SHOPPING ABSTRACT
Indian consumers are much more cautious about shopping online as compared to the West. There are some players in the field of e-shopping such as Amazon.com, Gateway.Inc, Buy.com, J.C. Penny, Office Depot, Costco Wholesale, QVC.com, Flipkart There are many variables that affect consumer behavior for e-shopping the variables that the following research is concentrating on are credit card purchasing limit and mode of payment the research design employed is experimental and sampling method used is multi layered cluster sampling.
Internet provides a marketplace where buyers & sellers conduct transactions directly, interactively & is real time beyond the physical limitations.“E-marketers” i.e. Electronic Marketers can and do develop their marketing plans and strategies by studying the various factors influencing consumer behavior of the “virtual” consumer.The internet has evolved as an important marketing medium & is now becoming an integral part of a multi-channel strategy 1for almost all the business firms in India.The trend is almost same in India too despite the lower investment in B2C online shopping technology.In the immediate future, the B2C firms in India are expected to reverse the low-tech spending trend to refresh their e-Commerce platforms.Indian consumers are much more cautious about shopping online as compared to the West. They are reluctant to divulge credit card details. The cash on delivery service has helped a lot to of traditional consumers turn to online shopping.Also, the increasing access to internet, more iPads, Smart Phones, sophisticated technology that gives 3D view of products, time poor consumers, increasing cost of real estate, will all lead to a shift to a digital commerce.The total Internet user base in India (inclusive of shared devices & mobile) is at 124 million users in the month of July 2012. 1 out of every 10 Indians is online making it a 10% online user penetration in India. The major players of e-shopping are Amazon.com, Gateway.Inc., Buy.com, J.C. Penny, Office Depot, Costco Wholesale, QVC.com, Flipkart, Staples, Bamesandnoble.com, Splegel Group, Snapdeal. Credit cards are more than plastic used to make purchases. The use of credit cards has grown tremendously and is now one of the primary sources of purchases for most consumers in the country. Credit card accounts are an example of open-end consumer credit, often called revolving credit. While credit cards are a convenient way to make purchases, they also tend to promote “impulse spending” and overspending. LITERATURE REVIEW
There are various factors which influence customer’s behavior pattern for e-shopping in urban areas specifically the credit card purchase limit & modes of payment i.e. Credit cards, Debit cards, Electronic cash & Cash on delivery, Cheque payment & Money order. Kargaonkar&Wolin (1999) found that online shoppers are more males & often young.Ruchi Nair (2010) found that gender, age and education influences consumer behavior pattern. Maigan& Lukas (1997) found that consumer unwillingness to provide their credit card information over the web has been cited as a major obstacle to online purchases. Lee & Turban (2001) studied on trust in internet shopping & it was found that lack of trust is one of the commonly cites reasons. Chase &Franson (2000) claimed that internet shopping is very innovative from the customer’s point of view. Blackwell (2001) studied the customer investigation on e-shopping & found that factors such as demographic lifestyle, personality, values, culture & family play a part in consumer behavior decision-making process. Childers (2001) found that interactivity of websites offers is a strong factor in support of stabilizing relationship with e-customers.Khan &Shaikh (2012) found that interactive websites have positive...
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