E Shopping And Consumer Attitudes In India Marketing Essay


Purpose – The purpose of this paper is to analyze the impact of factors and the extent to which they influence the consumer willingness to buy on-line vis-a-vis the conventional brick and howitzer format. The survey presented here used analysed the consequence of independent variables security, trust and monetary value on the dependendent variable willingness to buy online with Internet use being the moderating variable and sensed utility and perceive easiness of usage being the go-betweens.

Design/Methodology/Approach – A quessionaire was floated on the web inquiring the people ( mainly pupils from assorted B-schools and technology colleges ) about their attitude towards online shopping. The analysis of the consequences of this questionnaire was done utilizing the four-step method for mediation analysis.

Findingss –

Research limitations/implications – The survey focuses on a narrow demographic representation of our friends in XLRI, other b-schools and technology colleges i.e. chiefly the educated young person with Internet entree. This would restrict the generalisation of our survey. Though the sample size is appropriate for this degree of work, there is ever range to increase that to acquire consequences that conform more to the world. Besides, a individual sample was used for the survey. More diversified samples need to be obtained for future research. Besides current research needs to be expanded by analyzing extra countries of consumer shopping penchants.

Practical Implications – As sellers and companies ‘ expression to happen new ways to make clients with their merchandises, the ever-growing usage of Internet in India provides a aureate chance for them to make out to more and more people. This paper would supply a good penetration into an e-shopper ‘s purchase prefernce and they can orient their selling schemes to change over the possible clients into existent clients.

Originality/value – This paper examines the consequence of monetary value on the consumer willingness to buy online which was non found in the existing literature. The bing work in this country is really disconnected and does n’t analyze monetary value as an independent variable.

Keywords Security, Trust, Price, Perceived easiness of usage, Perceived utility, Consumer willingness to buy online.

Paper Type Research paper


The coming of cyberspace has changed the universe in a batch of ways. Among the things it has changed is the manner consumers used to shop and purchase goods and services. It evolved into a planetary phenomenon. When companies started looking for ways to turn to the alterations in consumer penchants to supply a differentiated service to the clients, Internet provided to be one of the ways to make that. The usage of cyberspace shopping or e-shopping as it is popularly called offered many advantages to both the companies and the consumers. Some of the advantages it offers are:


Become Price Competitive – Internet retailing helps cut down gross revenues & A ; selling disbursals taking to decrease of monetary values.

Wider range – Internet retailing offers companies the opportunity to make more and more people by non being confined geographically. The companies can besides utilize it for conveying and circulating information to clients in a faster and efficient manner.

Offer Customized Services – The companies can offer wider scope of services and besides custom-make services harmonizing to each client ‘s penchants which may non hold been possible in the traditional format.

Lower Apparatus Costs – It is cheaper to setup on-line gross revenues portals than to setup a physical mercantile establishment.


More Choices and information – The clients can utilize the cyberspace retailing platform to non merely purchase the merchandise but is besides able to utilize it for comparing merchandises, monetary values, characteristics and other installations and services that the assorted Sellerss are offering.

However, with all the pros come some of the cons associated with cyberspace retailing. The primary among those being the fact that the client experience which he additions from really touching or experiencing the merchandise manually is absent in Internet retailing. The companies are besides affected since they would non be able to affect upon the client the existent characteristics or quality of the merchandise which would hold been possible in instance it was a traditional sale. Customers may besides be doubting about cyberspace retailing since the merchandises may turn out to different than what they appear to be in the web sites etc. Another major hinderance is the fact that sometimes the online merchandises are more expensive since the avenues of discounting and dialogues are limited in e-shopping. Consumers look for a combination of the quality of the merchandise, support offered, the easiness of purchase and the cost-effectiveness to make up one’s mind whether to travel in for the traditional manner of buying or store online.

Though internet retailing has non come up in every bit large a manner as it was expected particularly in India, the protagonists of Internet retailing take bosom from the fact that the Internet retailing is turning at a reasonably nice gait with the cardinal drivers to the growing being

Increasing Computer literacy among the young person

More and more exposure to the Internet – cyberspace incursion increasing and cyberspace going more and more low-cost

Increasing consciousness of the online construct and its advantages – Ever increasing figure of companies offering their merchandises and services in the cyberspace infinite in add-on to the traditional format

Attractive strategies and offers being offered by the on-line e-shops due to the decreased costs and time-saving

Even though a immense ball of on-line dealing grosss comes from B2B Commerce ( Travel histories for about 80-85 per cent of the entire e-commerce market while other merchandise shopping histories for a mere 15-20 per cent ) , there is a immense potency for business-to-consumer commercialism. Research workers have been invariably seeking to derive a better penetration into consumer behavior in internet. With more and more surveies being conducted on the topic the research workers are seeking to explicate E-consumers ‘ behavior from varied positions so that companies can utilize them to guarantee that their on-line theoretical account succeeds. Sometimes their surveies are merely based on the traditional theoretical accounts of consumer behavior and so their cogency is examined in the context of the Internet. We try to research some of these factors and a new factor monetary value from our survey.

Research background and hypotheses

The bing literature on consumer online buying behaviour has chiefly concentrated itself on placing the factors impacting the willingness of consumers to affect in Internet shopping and besides they are really disconnected in nature.

Besides a batch of research has been done to distinguish on-line shopping and traditional shopping. A cardinal difference in consumers ‘ shopping behavior in on-line stores from that in the traditional environment has been proposed by several research workers ( Alba et al, 1997 ; and Winer et Al, 1997 ) .

Adoption rate of new engineering or inactiveness to it is another major determiner of shopping penchants. Researchs have suggested that those who are speedy to follow new communicating engineerings are more upscale, better educated, high-profile, and younger than the non-adopters ( Atkin, 1993 ; Rogers, 1995 ; and Lin, 1998 ) . The consequences show that people with higher instruction and higher have better entree to engineering and besides that immature people are more inclined towards seeking out new technological devices.

Equally far as the sphere of consumer behavior research is considered, there are general theoretical accounts of buying/purchasing behavior that depict the procedure through which consumers make a purchase determination e.g. there is a traditional model which analyses the purchaser determination procedure known as the Five-Step Model ( Pearson et al, 1997 ) which proposing that a consumer moves from a province of want ( job acknowledgment ) to post purchase behavior.

A theoretical account of attitudes and purpose to buy online has besides been suggested covering five factors i.e. convenience, client service, trust, web shopping enjoyment and web shop environment ( Ch. J.S. Prasad et Al, 2009 )

The ever-increasing usage of Internet in India provides a great chance for E-marketers. A better cognition of the factors impacting the e-shoppers ‘ behavior, and the relationships amongst these factors would assist sellers develop their selling schemes further to change over possible clients into active 1s, while retaining the bing client base ( Ravi Kiran et Al, 2008 ) . Literature reappraisal has revealed that there are multiple factors that guide the buying determination of a consumer and many frights and concerns are inexplicit with shopping online. The present literature on the subject lays concentrate on assorted facets such as convenience ; Internet entree and velocity, web experience etc and we can integrate the acquisition ‘s from these literatures in our survey to better understand the subject.

Our survey on the other manus take a new variable of monetary value i.e. the monetary value of the merchandise being considered for purchase by the client into the research domain apart from security and trust.

The variables under consideration are:


Trust is a really of import factor when it comes to online purchases. It is a set of beliefs held by a consumer towards the features of a certain seller and its future behaviour. Minutess over the Internet have been many a clip intercepted for incorrect intents and therefore even with the coming of the Internet age the volumes of minutess over the web have ne’er reached the expected degrees. Online medium of purchase does n’t let for the direct interaction with the marketer therefore doing it hard to set up trust sing the individuality of the marketer. Furthermore the payment being made through recognition cards require delving of private information in the manus of the seller. The payment besides needs to be made prior to the bringing of the merchandise, which requires higher grade of trust in the seller as it is besides possible that the merchandise received is non the one ordered. Making ailments for such mistakes becomes all the more debatable if the company has no physical office. Hacker onslaughts and Spam are some other side effects of this channel. In short, it would be just to state that the hazards the cyberspace consumer appears to hold to face are highly high ( Koufaris and Hampton-Sousa, 2002 ) . Indeed, cyberspace purchases are perceived as being riskier operations ( Taylor Nelson Sofres Interactive, 2002 ) , and the development of trust via the cyberspace is more hard than in the traditional channels ( Bitting and Ghorbani, 2004 ) .


Security is one another of import determiner of on-line skiping behaviour and the deficiency of it is another of the chief obstructions in front of the route to booming e-commerce ( Furnell and Karweni, 1999 ; Chou et al. , 1999 ; Dong-Her et al. , 2004 ) . The hazard of the fiscal information of the client being used for deceitful purchases is another really of import factor ( Jones et al, 2000, Kolsaker and Payne 2002 ) as the perceptual experiences sing the strength of the payment gateways and the mechanisms of hive awaying and treating the confidential information drama a really large function in the consumer willingness to buy online. The subjective chance with which consumers by and large believe that their personal information ( private and pecuniary ) will non be viewed, stored, and manipulated during theodolite and storage by inappropriate parties in a mode consistent with their confident outlooks can be defined as Perceived security. Thus unity of the information is of premier concern, which means that the informations would non be altered by any 3rd party without permission. Another of import factor is confidentiality. It means that informations would be seen merely by authorised persons. Authentication which involves transporting out designation prior to transporting out any operation plays a major function a well in set uping the strenght of the security.

Perceived Usefulness

Peoples tend to utilize or non utilize a peculiar medium to the extent they think that it would assist them make the occupation better. This is termed as sensed utility. In other words it can be defined as the extent to which a consumer believes that online shopping will heighten his or her dealing public presentation. Harmonizing to Davis et Al. ( 1989 ) , persons form behavioural purposes towards online shopping based mostly on a cognitive assessment of how it will better their shopping public presentation. Harmonizing to Bhattacherjee ( 2001 ) , an person is more likely to mean to set about continued use when such use is perceived to be utile. Customers who have accomplished the shopping undertaking of merchandise acquisition in an efficient mode will be more likely to exhibit stronger redemption purposes ( Babin and Babin, 2001 ) . Perceived utility has been shown to hold a important consequence on client trueness purpose ( Cyr et al. , 2006 ) by anterior research.

Perceived easiness of usage:

This is the 2nd variable that comes into image after sensed usefulness impacting the determination of a consumer to utilize a peculiar medium. E.g. Even if the possible user believes that online shopping medium is much more utile, at the same clip, it is really hard to larn or accommodate to i.e. the public presentation benefits of utilizing the medium are being outweighed by the attempt to larn it. This is termed as the sensed easiness of usage. In other words it can be defined as the extent to which a consumer believes that online shopping will be free of attempt. The TAM implies that, all other things being equal, an online shopping web site that is perceived to be easier to utilize is more likely to bring on a perceptual experience of utility. Davis et Al. ( 1989 ) argued that betterments in easiness of usage might besides be instrumental in lending to increased public presentation. The extent to which increased easiness of usage would take to improved public presentation, it would hold a direct consequence on behavioural purpose and perceived usefulness ( Venkatesh and Davis, 2000 ) .

Monetary value

Owing to the spread in the extant literature sing the monetary value of the merchandise and the medium of its purchase it becomes imperative for this undertaking to analyze the same. It has been observed that merchandise with higher monetary values require high user engagement and therefore the preferable media for purchase is by and large the conventional shops instead the online retail format. Since greater sum is at interest, the hazard tends to be higher and the user wants to analyze the merchandise himself before doing the payment. The payment sum being bigger besides affects user ‘s determination of doing payments on-line e.g. through recognition cards as the hazard of deceitful behaviour is higher.

Willingness to buy online

From the treatment above, the undermentioned hypotheses ( see besides Figure 1 ) are proposed:

H1: Higher the monetary value of a merchandise lesser would be the consumer penchant to buy online.

H2: Higher the trust towards e-shopping web sites, higher would be the consumer penchant to buy online

H3: Higher the security of the e-shopping web sites, higher would be the consumer penchant to buy online

H4: Higher the sensed utility of the on-line medium for the consumer, higher would be the willingness to buy online

H5: Higher the sensed easiness of usage of the on-line medium for the consumer, higher would be the willingness to buy online



Monetary value

Willingness to buy online

Perceived Ease of Use

Perceived Usefulness

IT use

H6: Higher the Internet use wonts of the consumer higher would be willingness to purcahse online