online buying behaviour of consumer electronics in india
DESCRIPTION
Analysing the factors affecting Online buying behaviour of consumer electronics’ by examining the effect of perceived risks, perceived benefits and attitude toward online shopping on shopping behaviour through an administered questionnaire and regression analysis.TRANSCRIPT
Online Buying Behaviour of
Consumer Electronics in
India
Forecast
We studied how the perceived risks and perceived benefits affected the attitude of the online shoppers and how this is in turn affected the online shopping behaviour.
• To determine the factors and attributes which influence online buying behaviour of consumers between the age group of 18-30 years
Primary Research Objective
• To determine the psychographic profile of consumers who purchase over the Internet.
• To determine the average spending and frequency of purchase over the internet by consumer.
Secondary Research
Objectives
Literature ReviewConceptual framework of the research
Source: International Journal of Consumer Studies ISSN 1470-6423
Perceived risks
of online shopping
Attitude towards online
shopping
Online Shopping Behaviour
Perceived benefits of online shopping
Methodology ParticipantsThe population for this study included age group of 18-35 years from India
Data collection procedureOur survey is in form of a online questionnaire.Total of 145 responses have been received through online survey ,out of which 125 have been taken into consideration. Rest are ignored due to higher standard deviation.
Methodology Analysis Method
For testing hypotheses of the study, regression analysis will be used
Independent Variables
Perceived Risk
• Financial risk• Product risk• Non-delivery
risk• Return policy
Dependent Variables
• Attitude• Online
Shopping Behavior
Independent Variables
Perceived Benefit• Products variety• Brand variety• Easy Buying
procedures• Lower prices• Various of mode
of payments
Hypothesis• Perceived risks which will be having negative influence on
attitude towards shopping online
Hypothesis• Perceived benefits which will be having positive influence on attitude
towards shopping online
38%
35%
21%
4% 2%Age in years
18-22
22-26
26-30
30-35
Below 18 or Above 35
53%37%
6%
1% 3%
Occupation
Student
Service
Business
Housewife
Other
82%
18%
GenderMale Female
90%
10%
Marital StatusUnmarried Married
Demographics
85%
9%
1% 1% 4%
Place from where people shop on-line
Home
Work
Internet Cafes
Other Places
Do not useCOD
Credit Card
Debit Card
Net Banking
73
27
25
21
Preferred Mode of Payment
7%
57%36%
Education Level
Undergraduate
Graduate
Post-Graduate
Mobiles & Tablets
Laptops & PCs
Televisions
MP3 Players
Cameras
74
37
2
19
14
Preferred Product for Online Shopping
Correlation Analysis
Financial Risk
Product Risk
Non-Delivery Risk
Return Risk
Product Variety
Brand Variety
Easy Buying Procedu
re
Lower
Price
Various
modes of
Payment
Financial Risk 1
Product Risk 0.218 1Non-Delivery Risk 0.179 0.388 1
Return Risk 0.121 0.332 0.579 1
Product Variety -0.012 -0.034 0.024 0.080 1
Brand Variety -0.013 -0.110 0.031 0.091 0.534 1
Easy Buying Procedure -0.053 0.016 0.209 0.061 0.433 0.378 1
Lower Price 0.080 0.179 0.027 0.235 0.335 0.450 0.238 1
Various modes of Payment -0.113 -0.074 0.109 0.016 0.559 0.225 0.3530.212 1
Regression AnalysisRegression Statistics
Multiple R0.43767
8
R Square0.19156
2Adjusted R Square
0.137666
Standard Error0.67622
9Observations 125
Coefficient
sStandard
Error t Stat P-valueIntercept 2.467401 0.564037895 4.37453 2.69E-05Financial Risk -0.05675 0.062767177 -0.90417 0.367797Product Risk -0.08874 0.091518675 -0.9696 0.334283Non Delivery Risk -0.04385 0.09832761 -0.44592 0.656492Return Policy -0.00189 0.09232527 -0.02047 0.983703Product Variety 0.052019 0.118004735 0.440822 0.66017Brand Variety 0.180881 0.089259458 2.026465 0.045031Easy Buying Procedure 0.058967 0.108311669 0.544418 0.587208Lower Prices -0.00295 0.09924391 -0.02971 0.976351Various Modes of Payment 0.120243 0.081052096 1.483524 0.140671
Independent Variable – Attitude towards online buying
Regression AnalysisRegression Statistics
Multiple R 0.571921R Square 0.327094Adjusted R Square 0.321623Standard Error 0.803117Observations 125
CoefficientsStandard
Error t Stat P-value
Intercept 0.176538 0.352542 0.500758 0.617436
Attitude 0.778074 0.100626 7.732354 3.24E-12
Independent Variable – Online Buying Behavior
Summary
Among perceived
risks, Effect of none of
the independe
nt variables
on attitude were
significant at the 5%
level
Among perceived benefits, Effect of Brand
Variety on attitude is significant at the 5%
level
Effect of other
benefits on attitude were not
significant at the 5%
level
Effect of attitude on online buying
behavior is
significant at the 5%
level
Future Work & Correction• Redo the survey with following correction
Future work &
correction
Addition of independent variables –
Attractiveness of Websites,
Advertisement
Removal of the highly
correlated independent variables like
Product variety
Changing method of
measurement from likert scale to 7
point rating scale
Limitations
Because of using questionnaire as data gathering
tools, the respondents may not answer the
questions exactly according to what
they think and behave
As we discussed before, there are many
factors affecting on online shopping
behavior. But in this study because of time constraints we didn't examined all factors influencing on online shopping behavior
The methodology of this study for
analyzing the data may not be able to
fully assess the online shopping
behavior of consumers based on discussed variables
References Mohammad Hossein Moshref Javadi, Hossein Rezaei Dolatabadi, Mojtaba
Nourbakhsh1, Amir Poursaeedi & Ahmad Reza Asadollahi, An Analysis of Factors Affecting on Online Shopping Behavior of Consumers
Didier Soopramanien, Conflicting attitudes and scepticism towards online shopping: the role of experience
http://www.indiasocial.in/nielsen-global-online-shopping-report/
http://www.wirelessduniya.com/2012/01/10/e-commerce-in-india-to-explode-in-2012indian-e-shoppers-will-have-a-good-time-getting-great-deals-and-services-online/
http://yourstory.in/2012/03/indian-e-tail-market-to-be-worth-usd-12-billion-by-2016-says-anedelweiss-report-key-challenges-on-the-way/
Thank you