Online Consumer Buying Behaviour

A Market Research
Ankur Mehrotra 2007B10 Anshul Kapoor 2007B12 Anuja ua 2007B1!

Table of Contents
Table of Contents..................................................................................................................2 Executive Summary............................................................................................................... 3 Introduction............................................................................................................................ 5 Objectives.......................................................................................................................... 5 Primary esearc! Objective...........................................................................................5 Secondary esearc! Objectives....................................................................................5 "et!odolo#y.......................................................................................................................... $ Survey %dministration........................................................................................................$ Sam&lin# .......................................................................................................................... $ 'ata eduction.................................................................................................................. ( 'ata %nalysis..................................................................................................................... ( )indin#s................................................................................................................................. * C OSS T%+,-%TIO.S....................................................................................................* E/ ESSIO. %.%-0SIS...............................................................................................21 %.O2%............................................................................................................................ 2$ C-,STE %.%-0SIS......................................................................................................2( 'ISC I"I.%.T 3IT4 C-,STE )%CTO %.%-0SIS.................................................................35 %.%-0SIS........................................................................................................32

Conclusions......................................................................................................................... 3( %nnexures........................................................................................................................... 36 %nnexure 1a7 %##lomeration Sc!edule for Cluster %nalysis...........................................85 %nnexure 1b7 Correlation "atrix for )actor %nalysis........................................................82 %nnexure 1c7 %.O2% Table for e#ression %nalysis......................................................85 %nnexure 2a7 9uestionnaire for Ex&loratory esearc!....................................................8$ %nnexure 2b7 )inal 9uestionnaire....................................................................................8*

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Executive Summary
T!e &roject focused on findin# out t!e Online +uyin# +e!aviour of consumers bet:een t!e a#e #rou& of 1*;35 years. T!e stated objective of t!e study :as furt!er bro<en do:n to secondary objectives :!ic! aimed at findin# information re#ardin# t!e &o&ular &roduct cate#ories= fre>uency of &urc!ases= avera#e s&endin#= factors affectin# buyin# decision &rocess etc. T!e ex&loratory researc! :as carried out :it! 2( res&ondents :it! a set of 15 o&en ended >uestions. T!e ex&loratory findin#s !el&ed us in determinin# t!e <ey factors :!ic! needed to be furt!er ex&lored for researc!. T!e secondary researc! :as ta<en from sources li<e Indian ?ournal of "ana#ement Tec!nolo#y= @innov --C= and %C.ielson. T!e >uestionnaire desi#ned !ad 6 >uestions and :as administered to 15$ res&ondents. Eac! of t!e >uestions :as desi#ned to satisfy at least one of t!e secondary objectives of t!e researc!. T!e res&onse format :as of a mixed variety :!ic! also !el&ed in better determination of outcomes. Post data reduction= Cross tabulation :as used for analyAin# t!e causal relations!i& bet:een different &airs of factors. %.O2% :as also a&&lied to a &air of factors.
T!e e#ression %nalysis bet:een t!e de&endent variable B%vera#e %mount s&ent &er &urc!ase made onlineC and t!e inde&endent variables of )re>uency of Purc!ase of &roducts and services online= o:nin# a Credit Card= "arital Status= Education and %#e= :as done. T!e re#ression model did not #ive any si#nificant correlation bet:een t!e

factors and t!e 'e&endent 2ariable. %lt!ou#! t!ere is a stron# interde&endence bet:een a fe: variables yet :!en ta<en collectively t!ey do not s!o: !i#! correlation. T!en= Cluster %nalysis :as done on t!e data and b ased on t!e res&onsesD :e could
divide t!e res&ondents in t!ree clearly distinct #rou&s. 3e named t!em7 Confident Online +uyer= ,nsure surfer and "all S!o&&er. 3e also &erformed 'iscriminant :it! Cluster %nalysis to &redict cluster members!i& of consumers based on t!eir attitude to:ards online s!o&&in#.

3e &erformed )actor %nalysis to find t!e major factors. 3e could identify six factors7 2alue for "oney= Trust= Connected and ,& to date= Problems )aced= and
Traditionalism.

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Online Buying Behavior

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Introduction
India !as t!e :orldEs 8t! lar#est Internet user base= :!ic! crossed t!e 155 million mar< recently. +etter connectivity= boomin# economy and !i#!er s&endin# &o:er !el&ed t!e Indian e;commerce mar<et revenues to cross F555 million :it! a C%/ of 153G over last 8 years. T!is may not be a si#nificant number= avera#in# to only around F5 &er user &er year. 3it! t!e above bac<#round in mind= t!is researc! !as been conducted to #ain an insi#!t into t!e online buyin# be!aviour of consumers. T!e objective is to ex&lore t!e factors :!ic! influence online &urc!ase= t!e &syc!o#ra&!ic &rofile of t!e consumer #rou&s and understandin# t!e buyin# decision &rocess. Our findin#s s!ould !el& an Internet "ar<eter to determine t!e &roductHservice cate#ories to be introduced or to be used for mar<etin# for a s&ecific se#ment of consumers. T!is :ould also allo: t!em to add or remove servicesHfeatures :!ic! are im&ortant in t!e buyin# decision &rocess. T!is study !o:ever does not aim to identify ne:er areas to introduce ne: services= nor s!ould it be used to &redict t!e success or failure of internet ventures.

Objectives
Primary Research Objective
To determine t!e factors and attributes :!ic! influence online buyin# be!avior of consumers bet:een t!e a#e #rou& of 1*;35 years.

Secondary Research Objectives

1. To determine t!e &syc!o#ra&!ic &rofile of consumers :!o &urc!ase over t!e Internet. 2. To determine t!e <ey &roduct or service cate#ories o&ted for= by consumers de&endin# on t!eir &rofile. 3. To determine t!e factors :!ic! influence t!e buyin# decision &rocess of a consumer. 8. To determine t!e avera#e s&endin# and fre>uency of &urc!ase over t!e internet by a consumer. T!e ex&loratory researc!= conducted on over 12 res&ondents I%nnexure IJ= focused on furt!er analysin# t!e researc! objectives and also determinin# various factors :!ic! :ould im&act t!e &rimary researc! objective. T!rou#! a set of 12 o&en;ended >uestions= :e could finally conclude on some of t!e <ey factors to be furt!er ex&lored in t!e researc!= t!ese included fre>uency of &urc!ase= safety issues= amount &er &urc!ase= &ayment met!ods etcK

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Secondary esearc! :as based on researc!es done by @innov --C on Internet Penetration in India= C!an#in# Consumer Perce&tions to:ards Online s!o&&in# in India L I?"T. +ot! of t!e researc!es stressed on t!e consumer &rofiles= &o&ular services and &ayments met!ods as im&ortant factors.

Methodology
T!e researc! :as administered bot! online and in &erson durin# a 5 day &eriod in )ebruary 255*. T!e location of in;&erson administration :as SIC Cam&us= Pune. Over *1 res&onses are from t!e online survey and t!e rest 28 from in;&erson survey conducted.

Survey Administration
T!e >uestionnaire com&rised of 6 >uestions I%nnexure IIJ :!ic! measured res&onses for different factors of fre>uency of &urc!ase= &ayment met!ods= &referred &roducts= avera#e s&endin#= !ours s&ent on t!e internet etcK

T!e >uestions measurin# res&ondent attitudes used -i<ert Scale I1;5J= 1* statements :ere #iven to res&ondents to measure t!eir attitudes to:ards online buyin#= and a fe: factual >uestions !ad dic!otomous res&onses.

T!e met!ods used for survey :as >uestionnaire administration :it! res&ondents fillin# out t!e res&onses t!emselves and online survey on Survey/iAmo.com

Sampling
T!e survey :as conducted on 155 res&ondentsD sam&le :as based on affordability criteria es&ecially on time constraints. Email invitations :ere sent to invite res&ondents on t!e Internet= and students in SIC Cam&us :ere contacted for res&onses.

Gender

Occupation

35% Male Female 65% 60%

40% Student Working Professional

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Data Reduction
T!e <ey ste&s of data &rocessin# :!ic! :ere im&lemented :ere Editin#= Codin#= Transcribin#= and SummariAin# statistical calculations.

EDITING7 )or some of t!e item non;res&onse errors li<e fre>uency of &urc!ase= &roduct cate#ory or :ebsites. T!e data :as inter&reted and assi#ned to t!e <no:n cate#ories :!erever &ossible.

CODING7 )or >uestions involvin# >ualitative values t!e res&onses :ere codified usin# numerical cate#ories or values. )or exam&leD Online s!o&&in# is more convenient= t!e res&onse of Bstron#ly a#reeC :as coded as 1 and Bstron#ly disa#reeC :as coded as 5.

TRANSCRIBING7 T!e data collected from all 155 >uestionnaires :as edited= codified and finally transferred on "S Excel on com&uter.

Data Analysis
Post 'ata eduction= t!e data :as furt!er used for analyAin# t!e im&act of various factors on eac! ot!er as :ell t!e correlation amon#st t!em usin# SPSS. T!e factors as :ell as t!eir correlation :ere studied :it! t!e !el& of t!e follo:in# tec!ni>ues7

CROSS-TABS WITH CHI-SQUARE7 T!e factors :ere #rou&ed into 5 &airs based on t!e res&onses from t!e >uestionnaire. T!ese :ere studied usin# C!i;S>uare as t!at :ould !el& us to <no: t!e interde&endency bet:een t!em. C!i;s>uare in #eneral studies causal relations!i& and t!us t!e !y&ot!eses :ere created for eac! of t!em :as done at 65G si#nificance level. +y conductin# t!e test and inter&retin# t!e results t!rou#! t!e &;value= :e can eit!er acce&t or not acce&t t!e null !y&ot!esis.

REGRESSION ANALYSIS7 In re#ression analysis= :e create a model :!erein :e determine t!e correlation bet:een t!e de&endent variable and multi&le inde&endent variables. +y conductin# t!e tests and inter&retin# t!e results= :e can determine t!e adjusted 2 value :!ic! tells us !o: #ood t!e re#ression model fits to t!e data. If t!e value is !i#!= t!en t!e model fits :ell to t!e data and t!at t!ere is a !i#! correlation bet:een t!e variables. On t!e ot!er !and= if t!e value is lo:= t!en t!e model does not fit very :ell to t!e data and t!ere is no si#nificant correlation bet:een t!e variables.

ANOVA7 %nalysis of variance= better <no:n as %.O2%= !el&s us to #rou& t!e data into various &o&ulation sam&les and t!en c!ec< t!eir relations!i& :it! an inde&endent variable= :!ic! :e consider to be si#nificant de&endin# on t!e res&onses from t!e >uestionnaire.

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T!e null !y&ot!esis for t!is is also created at a 65G si#nificant variable and t!en de&endin# on t!e si#nificant value from t!e results= t!e !y&ot!esis is acce&ted or not acce&ted. CLUSTER ANALYSIS7 T!is tec!ni>ue is used for se#mentation of consumers on t!e basis of similarities bet:een t!em. T!e similarities could be of demo#ra&!ics= buyin# !abits= or &syc!o#ra&!ics. 4ierarc!ical clusterin# is used to find t!e initial cluster solution= and M "eans is later used to determine cluster members!i& of res&ondents= cluster labellin# is also done. DISCRIMINANT ANALYSIS WITH CLUSTERS 7 % combination of 'iscriminant %nalysis :it! clusters to create a model :!ic! !el&s in &redictin# cluster members!i& of a consumer on t!e basis of t!e in&ut factors. FACTOR ANALYSIS7 T!is is a tec!ni>ue to reduce data com&lexity by reducin# t!e number of variables bein# studies. It !el&s identify latent or underlyin# factors from an array of seemin#ly im&ortant variables. T!is &rocedure !el&s #ainin# insi#!t into &syc!o#ra&!ic variables.

Findings
CROSS TA !"AT#O$S
a" Cre#it Car#$ %re&uency o' (urchase )ull *ypothesis+ %t 65G si#nificance level= o:nin# a credit card does not !ave any im&act on t!e fre>uency of &urc!ase. Alternate *ypothesis7 %t 65G si#nificance level= o:nin# a credit card !as an im&act on t!e fre>uency of &urc!ase.

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O,nCre#itCar# - %re&o'(urchase Crossta.ulation Count %re&o'(urchase Once a Mont h 2 $! /imes a Mont h 18 Once in ! Month s /otal Once )eve Once in 0 r a Month /rie# Month s

O,nCre#itCa 1e 23 r# s )o 3 /otal 2$

2*

11

((

2 1$

11 36

15 21

5 $

31 15*

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Online Buying Behavior

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Chi$6&uare /ests 7alue #' Asymp2 6ig2 82$ si#e#"

Case (rocessing 6ummary Cases 7ali# ) Missing /otal (ercen t

(earson Chi$ 6&uare 9ikelihoo# Ratio 9inear$.y$ 9inear Association ) o' 7ali# Cases

1*.222IaJ 8 .551

(ercen (ercen ) ) t t

1(.6$2

8 .551

15.313

1 .555

O,nCre#itCa r# 15 155.5 %re&o'(urcha * G se

5 .5G

15 155.5G *

15*

a 3 cells I35.5GJ !ave ex&ected count less t!an 5. T!e minimum ex&ected count is 1.(2.

As the p$value 'rom the ta.le is lesser than 02034 ,hich is our assume# level o' signi'icance4 ,e #o not accept the null hypothesis4 that is4 'or the sample population4 o,ning a cre#it car# has an impact on the 're&uency o' purchase2

." 5$.anking$%re&uency o' (urchase )ull *ypothesis7 %t 65G si#nificance level= e;ban<in# does not !ave any im&act on t!e fre>uency of &urc!ase. Alternate *ypothesis+ %t 65G si#nificance level= e;ban<in# !as an im&act on t!e fre>uency of &urc!ase.

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5:.anking - %re&o'(urchase Crossta.ulation Count %re&o'(urchase Once a mont h 2$! times a mont h 15 /otal

Once Once Once in ! )eve in 0 a month r month mont s trie# s h 32

5:.anki ng

1e 22 s )o 3

11 15 21

5 ( (

*5 2( 15(

1 1$

$ 3*

/otal

25

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Chi$6&uare /ests 7alue #' Asymp2 6ig2 82$ si#e#"

(earson Chi$ 6&uare 9ikelihoo# Ratio 9inear$.y$ 9inear Association ) o' 7ali# Cases

33.862Ia 8 .555 J 32.*85 8 .555

25.(3(

1 .555

15(

a 2 cells I25.5GJ !ave ex&ected count less t!an 5. T!e minimum ex&ected count is 1.((.

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Case (rocessing 6ummary Cases 7ali# ) Missing /otal (ercen t

(ercen ) (ercen ) t t 5 .5G

5:.anking - 15 155.5 %re&o'(urcha ( G se

15 155.5G (

As the p$value 'rom the ta.le is lesser than 02034 ,hich is our assume# level o' signi'icance4 ,e #o not accept the null hypothesis4 that is4 'or the sample population4 5$.anking has an impact on the 're&uency o' purchase2

c" ;en#er$Amount 6pent )ull *ypothesis7 %t 65G si#nificance level= #ender does not !ave any im&act on t!e avera#e amount s&ent &er &urc!ase made online. Alternate *ypothesis7 %t 65G si#nificance level= e;ban<in# !as an im&act on t!e avera#e amount s&ent &er &urc!ase made online.

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Chi$6&uare /ests Asymp2 6ig2 82$si#e#"

;en#er - Amount6pent Crossta.ulation Count 7alue #' Amount6pent 9es s tha n 300 ;en#e Male 11 r %emal ( e /otal 1* 300 $ 100 0 100 0$ 200 0 /ota l 200 ;reate 9ess 0 $ r than than 300 3000 300 0

(earson Chi$ 6&uare 9ikelihoo# Ratio

2.(*6IaJ 8 .568 2.*11 8 .565 1 .655

9inear$.y$9inear .553 Association ) o' 7ali# Cases 15$

13 8

6 $

2( 6

12 *

(2 38

a 1 cells I15.5GJ !ave ex&ected count less t!an 5. T!e minimum ex&ected count is 8.*1.

1(

15

3$

25

15$

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Case (rocessing 6ummary Cases 7ali# ) Missing /otal (erc ent 155. 5G

(ercent ) (ercent )

;en#er 15$ 155.5G Amount6pent

5 .5G

15$

As the p$value 'rom the ta.le is greater than 02034 ,hich is our assume# level o' signi'icance4 ,e accept the null hypothesis4 that is4 'or the sample population< gen#er #oes not have any impact on the average amount spent per purchase ma#e online2

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#" ;en#er$%re&uency o' (urchase )ull *ypothesis7 %t 65G si#nificance level= #ender does not !ave any im&act on t!e fre>uency of &urc!ase of online &roducts and services. Alternate *ypothesis7 %t 65G si#nificance level= #ender !as an im&act on t!e fre>uency of &urc!ase of online &roducts and services. Chi$6&uare /ests 7alue #' Asymp2 6ig2 82$ si#e#" ;en#er - %re&o'(urchase Crossta.ulation Count %re&o'(urchase Once a Mont h 2$! /imes a Mont h 18 2 Once in ! Month s /otal Once in 0 )eve Once Month r a s /rie# Month

(earson Chi$ 6&uare 9ikelihoo# Ratio 9inear$.y$9inear Association ) o' 7ali# Cases

11.2(*Ia 8 .528 J 11.866 6.5*8 8 .521 1 .553

15$

;en#e Male 25 r %emal 8 e /otal 28

2( 13

6 11

3 3 $

(3 33 15$

a 3 cells I35.5GJ !ave ex&ected count less t!an 5. T!e minimum ex&ected count is 1.*(.

1$

85

25

Case (rocessing 6ummary Cases 7ali# ) Missing /otal (ercen t

(ercen ) (ercen ) t t 5 .5G

;en#er 15 155.5 %re&o'(urcha $ G se

15 155.5G $

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As the p$value 'rom the ta.le is lesser than 02034 ,hich is our assume# level o' signi'icance4 ,e #o not accept the null hypothesis4 that is4 'or the sample population< gen#er has an impact on the 're&uency o' purchase o' online pro#ucts an# services2

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e" =ncome$%re&uency o' (urchase )ull *ypothesis+ %t 65G si#nificance level= income of res&ondents does not !ave any im&act on t!e fre>uency of &urc!ase of online &roducts and services. Alternate *ypothesis7 %t 65G si#nificance level= income of res&ondents !as an im&act on t!e fre>uency of &urc!ase of online &roducts and services.

=ncome - %re&o'(urchase Crossta.ulation Count %re&o'(urchase /otal

2$! Once in Once in Once a )ever Once a /imes a ! 0 Month /rie# Month Month Months Months 9ess than 10000 10000$ 20000 20000$ !0000 !0000$ 30000 30000$ 100000 ;reater than 100000 /otal

11

1(

=ncom e

13

16

8$

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Chi$6&uare /ests Asymp2 6ig2 82$si#e#"

7alue

#'

Case (rocessing 6ummary Cases 7ali# Missing /otal

(earson Chi$ 6&uare 9ikelihoo# Ratio 9inear$.y$9inear Association ) o' 7ali# Cases

2*.6$$IaJ 25 .5** 26.(5* 2.*5$ 8$ 25 .5(8

) 1 .568

(ercen (ercen (ercen ) ) t t t

=ncome 155.5 %re&o'(urcha 8$ G se

5 .5G

8$ 155.5G

a 26 cells I6$.(GJ !ave ex&ected count less t!an 5. T!e minimum ex&ected count is .5(. Online Buying Behavior Page 25

As the p$value 'rom the ta.le is greater than 02034 ,hich is our assume# level o' signi'icance4 ,e #o not accept the null hypothesis4 that is4 'or the sample population< income #oes not have an impact on the 're&uency o' purchase o' online pro#ucts an# services2

R%&R%SS#O$ A$A"'S#S
T!e e#ression %nalysis bet:een t!e de&endent variable B%vera#e %mount s&ent &er &urc!ase made onlineC and t!e inde&endent variables of )re>uency of Purc!ase of &roducts and services online= o:nin# a Credit Card= "arital Status= Education and %#e= :as done usin# SPSS. T!e details are as belo:7

7aria.les 5ntere#>Remove#8."

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Mo#e 7aria.les 5ntere# l 1 "aritalStatus= )re>ofPurc!ase= Education= CreditCard= %#eIaJ

7aria.les Remove# .

Metho#

Enter +ac<:ard Icriterion7 Probability of );to;remove NO .155J. +ac<:ard Icriterion7 Probability of );to;remove NO .155J. +ac<:ard Icriterion7 Probability of );to;remove NO .155J.

%#e

Education

"aritalStatus

a %ll re>uested variables entered. b 'e&endent 2ariable7 %mtS&ent

Coe''icients8a" @nstan#ar#iAe# Coe''icients B 1 8Constant" 1.$6$ 6t#2 5rror 1.658 .122 .5(* .31* Page 22 .335 .5*3 ;.238 6tan#ar#iAe# Coe''icients Beta t 6ig2 6t#2 5rror .3**

Mo#e l

B .*$*

%re&o'(urcha .852 se Age Cre#itCar# Online Buying Behavior .558 ;.$65

3.355 .551 .$6$ ; .8*6 .532

2.1*$ 5#ucation ;.152 .252 .8$8 .612 .121 .331 ;.5($ .56$ ;.(53 .858 .*2* .815

Marital6tatus .3*8 8Constant" 2.*6(

3.1(* .552 3.323 .551 ; .515 2.8(( ;.$(1 .558 1.358 .16$ 3.3$8 .551 .381 3.8$( .551 ; .513 2.58( 1.3*5 .1(1 $.(*1 .555 .335 3.363 .551 ; .553 3.555

%re&o'(urcha .853 se 2 Cre#itCar# 5#ucation ;.(55 ;.138

.355 .166 .856 .($2 .125

;.258 ;.5$( .138

Marital6tatus .538 8Constant" 2.5$8

%re&o'(urcha .815 se ! Cre#itCar# ;.((2

.353 .85$ .86$ .125

;.256 .185

Marital6tatus .5$1 8Constant" 3.3$$

%re&o'(urcha .85* se Cre#itCar# ;.**2

.268

;.26(

a 'e&endent 2ariable7 %mtS&ent

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5Bclu#e# 7aria.les8#" Beta =n Mo#e l t 6ig2 (artial Correlation Collinearity 6tatistics /olerance .$*2 .$68 .6$2 .*(8 .6(1 .62$

/oleranc /oleranc /oleranc /olerance e e e Age Age .5*3IaJ .5(1IbJ ;.5$(IbJ .122IcJ ;.5*5IcJ .$6$ .$5$ ;.$(1 1.1$8 ;.(6* 1.3*5 .8*6 .58$ .558 .28* .82( .1(1 .5(( .5$( ;.5(8 .12( ;.5*( .155

! 5#ucation Age ? 5#ucation

Marital6tatu .185IcJ s

a Predictors in t!e "odel7 IConstantJ= "aritalStatus= )re>ofPurc!ase= Education= CreditCard b Predictors in t!e "odel7 IConstantJ= "aritalStatus= )re>ofPurc!ase= CreditCard c Predictors in t!e "odel7 IConstantJ= )re>ofPurc!ase= CreditCard d 'e&endent 2ariable7 %mtS&ent

%s can be seen from t!e above table= t!e inde&endent variables can be #radually removed in t!e re#ression model as t!ey donEt !ave any si#nificant im&act on t!e value of 2. T!e value of 2 is >uite lo: and so it can be said t!at t!e re#ression model does not fit into t!e data very :ell. %lso= t!e sum of s>uares of re#ression is lesser t!an t!e sum of s>uares of residuals and t!is reiterates t!e findin#s of 2. T!is is because if t!e sum of s>uares of re#ression is lesser t!an t!e sum of s>uares of residuals= t!en t!e inde&endent variables do not ex&lain t!e variation in t!e de&endent variable :ell. 3!ile cross tabs su##est a &ositive relations!i& bet:een multi&le &airs of factors= t!e linear correlation model= :it! all factors to#et!er= does not fit in :it! t!e outcomes.

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A$O(A
)ull hypothesis+ %t 65G confidence interval for t!e &o&ulation ta<en= income does not !ave any im&act on t!e fre>uency of &urc!ase of online &roducts and services. Alternate *ypothesis7 %t 65G confidence interval for t!e &o&ulation ta<en= income !as an im&act on t!e fre>uency of &urc!ase of online &roducts and services. 65G Confidence Interval for "ean . .55 -ess t!an 15555 15555;25555 25555;35555 35555;55555 55555; 155555 /reater t!an 155555 Total $8 3 ( 1$ ( 5 ( 156 "ean 2.312 5 2.333 3 2.*5( 1 2.(55 5 2.(18 3 2.555 5 2.82* $ 2.831 2 Std. Std. 'eviation Error 1.265$5 .5((35 1.8$3*5 .*5$35 .(5563 1.228(8 1.2(282 1.16$6$ . 1$165 . 33333 . 5532* . 21856 . 2*5(1 . 58((2 . 8*563 . 118$5 -o:er +ound 1.6**6 .*661 1.5533 2.263( 2.5152 .8(63 1.251* 2.2536 ,&&er +ound 2.$3$1 3.($($ 8.2115 3.25$3 3.8138 3.525( 3.$558 2.$5*8 "inim um .55 2.55 .55 1.55 2.55 1.55 .55 .55 "axim um 8.55 3.55 8.55 8.55 8.55 8.55 8.55 8.55

A)O7A )re>uency Sum of S>uares +et:een /rou&s 3it!in /rou&s Total 5.31( 186.81( 158.(38 "ean S>uare .**$ 1.8$5

df $ 152 15*

) .$55

Si#. .(2$

Online Buying Behavior

Page 2$

Means (lots

3"00

"#0

Mean of Frequency

"60

"40

" 0

"00 "00 !ess than 10000 10000- 0000 0000-30000 30000-50000 50000100000 Greater than 100000

Income

T!e &;value from t!e %.O2% table is #reater t!an t!e si#nificance value of 5.55 assumed by us. T!us= at t!is si#nificance level :e acce&t t!e null !y&ot!esis. So :e can conclude t!at income does not !ave an im&act on t!e fre>uency of &urc!ase of online &roducts and services for t!ese res&ondents. 'o remember t!at t!e same conclusion :as arrived at :!en Cross tabulation of location and usa#e rate :as &erformed earlier.

C"!ST%R A$A"'S#S
T!e cluster analysis :as run :!ere &eo&le :ere surveyed about t!eir attitudes to:ards internet s!o&&in#. T!e &references indicated by res&ondents :ere used to find out t!e consumer se#ments t!at react differently to different &arameters related to online s!o&&in#. T!e se#ments obtained :ould #ive an understandin# as to !o: t!e consumers are &laced in terms of t!eir attitudes. 4ierarc!ical clusterin# :as done to determine t!e initial cluster solution. 3!ile t!e initial cluster solution by SPSS #ives us 2 clusters= :e ta<e a difference of coefficients #reater t!an or e>ual to 2.(2 form anot!er cluster. .o: :e execute t!e M;"ean cluster to #et t!e final cluster solution and t!rou#! %.O2% table :e #et t!at all t!e variables bear si#nificance at 65G confidence level.

Online Buying Behavior

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ANOVA Cluster Mean S$uare ("1)0 1"(44 6"364 ("43) ("4#5 ")35 3"441 6"3)3 4"3(# )"5#1 #"64) 1"011 5"5#5 "#66 6"6# 5"330 #" #4 df Error Mean S$uare "515 "341 "536 "36( "60# "55) "61) "553 "46) "(10 "6)1 "()1 "#3# "(30 "# 3 "( # "4)) %f 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 F Mean S$uare 5 "#14 5"116 11"#(4 (4"#1) 1 "31 5" 55 5"56 11"554 )"334 13"500 1 "51# 1" (# 6"66# 1"1#6 #"1 1 ("3 0 16"61 Sig. df "000 "00# "000 "000 "000 "00( "005 "000 "000 "000 "000 " #3 "00 "30) "001 "001 "000

&nternet'sMall !atest&nfo *++esi,ilit.on'enien+e Sa'etime *n-/here*n-time .redit.ardSafe S0e+ifi+%ate1ime Guaranteed2ualit%is+ounts 3asslefree .ashon%eli'er4as-Find Fa+edPro,lems .ontinue 1ou+handFeel %eli'er-Pro+ess 5o.redit.ard

1 "3# ")50 103 13"035 "000 1he F tests should ,e used onl- for des+ri0ti'e 0ur0oses ,e+ause the +lusters ha'e ,een +hosen to ma6imi7e the differen+es among +ases in different +lusters" 1he o,ser'ed signifi+an+e le'els are not +orre+ted for this and thus +annot ,e inter0reted as tests of the h-0othesis that the +luster means are e$ual"

Final Cluster Centers Cluster 1 &nternet'sMall !atest&nfo *++esi,ilit.on'enien+e Sa'etime *n-/here*n-time .redit.ardSafe S0e+ifi+%ate1ime Guaranteed2ualit%is+ounts 3asslefree .ashon%eli'er3"3# 1"5# 1"3( "6 "33 1"## "5 "10 ")# "15 "54 "15 "0) 1"(# 1")4 1"#1 1"5) "0) "(# " # 3"56 "( "03 "34 3 4"00 "05 "1# 3"#6 "55 "50 3"1# 3"00 3"55 3" 3 3"1# "50

Online Buying Behavior

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4as-Find Fa+edPro,lems .ontinue 1ou+handFeel %eli'er-Pro+ess 5o.redit.ard

"00 "5 "40 1"#1 "4 4"0#

"63 "#1 ")4 "53 "66 3"#1

"6# "5) 3" ( 1")5 3"45 "#

7aria.le

escription

Cluster 1 832" 'isa#ree Stron#ly %#ree

Cluster 28!2" Stron#ly %#ree .%.'

Cluster !822" Stron#ly 'isa#ree Stron#ly 'isa#ree

I prefer making a purchase from internet than using local malls or stores I can get the latest information from the Internet regarding different products/services that is not available in the market.

I have sufficient internet accessibility to shop online. Online shopping is more convenient than in-store shopping. Online shopping saves time over in-store shopping. Online shopping allows me to shop anywhere and at anytime. It is safe to use a credit card while shopping on the Internet. Online shopping provides me with the opportunity to get the products delivered on specific date and time anywhere as required. Products purchased through the Internet are with guaranteed quality. Internet provides regular discounts and promotional offers to me. Internet helps me avoid hassles of shopping in stores. ash on !elivery is a better way to pay while shopping on the Internet. "ometimes# I can find products online which I may not find in-stores. I have faced problems while shopping online. I continue shopping online despite facing problems on some occasions. It is important for me to touch and feel certain products before I purchase them. "o I cannot buy them online. I trust the delivery process of the shopping websites.

Stron#ly %#ree "ildly %#ree 'isa#ree Stron#ly %#ree Stron#ly %#ree Stron#ly %#ree

"ildly 'isa#ree Stron#ly %#ree Stron#ly %#ree "ildly %#ree .%.' "oderately %#ree

Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree Stron#ly 'isa#ree %#ree Stron#ly 'isa#ree %#ree

Stron#ly %#ree Stron#ly %#ree .%.' Stron#ly %#ree Stron#ly %#ree Stron#ly %#ree Stron#ly %#ree Stron#ly %#ree

Stron#ly 'isa#ree .%.' Stron#ly %#ree .%.' Stron#ly 'isa#ree Stron#ly 'isa#ree "ildly 'isa#ree Stron#ly 'isa#ree

Stron#ly %#ree

%#ree

Stron#ly 'isa#ree

Online Buying Behavior

Page 26

I do not shop online only because I do not own a credit card.

Stron#ly 'isa#ree

'isa#ree

Stron#ly %#ree

On t!e basis of t!e above scales= obtained by ratin# t!e relative results= :e can name our clusters as7 Cluster 1 7 Con'i#ent Online Buyer Cluster 2 7 @nsure sur'er Cluster 3 7 Mall 6hopper

D#SCR#M#$A$T )#T* C"!ST%R A$A"'S#S

+y combinin# cluster analysis :it! 'iscriminant analysis= :e could derive a model :!ic! could &redict cluster members!i& of t!e res&ondents on t!e basis of t!e variables analysed. T!e cluster solution is c!an#ed :it! M "eans clusterNSave o&tion selected for Cluster "embers!i&. T!is #ives a ne: column in t!e 'ata S!eet= s!o:in# t!e cluster members!i& of t!e res&onses. ,sin# t!is data s!eet= 'iscriminant analysis is done over t!e cluster members!i& column as t!e de&endent variables.

Online Buying Behavior

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Fun+tio n 1

4igen'alu e 3"00)8a9 "4648a9

% of <arian+e 55"0 45"0

.umulati'e % 55"0 100"0

.anoni+al .orrelation "#66 "#43

Fun+tion 1 &nternet'sMall !atest&nfo *++esi,ilit.on'enien+e Sa'etime *n-/here*n-time .redit.ardSafe S0e+ifi+%ate1ime Guaranteed2ualit%is+ounts 3asslefree .ashon%eli'er4as-Find Fa+edPro,lems .ontinue 1ou+handFeel %eli'er-Pro+ess 5o.redit.ard 8.onstant9 ")01 -"0)0 -"1 ")#) "3(0 -" # -"0#0 "0 # -"6 1 "045 "0)( "1)3 -"03# "0 ) -"1)# -"44( "30# "00# -3"3( -"3( " 16 "346 "(50 -"(4( "1#5 " 41 "510 "543 " 3 "1#0 " 6 "16 " ( "1() "6 3 " 6 -"60) -("1

Eigen alues a First +anoni+al dis+riminant fun+tions /ere used in the anal-sis"

!il"s# $am%da 1est of Fun+tion8s9 1 through Wilks: !am,da "0( " #) .his$uare 4#"6 ( 11("40

df 36 1(

Sig" "000 "000

Canonical &iscriminant Function Coefficients ;nstandardi7ed +oeffi+ients

/he 5igenvalues are greater than 14 an# the CilkDs 9am.a is .elo, 0234 this in#icates that the iscriminant Mo#el is a.le to eBplain the #ata 'airly ,ell2 T!e Canonical 'iscriminant )unction Coefficients table contains /rou&;1 number of functionsD t!e e>uations as derived from above are7 )1O .651IInternetvs"allJ ; .565 -atestInfo ; .122 %ccesibility ;.6*6 Convenience P.3(5 Savetime ; .22* %ny:!ere%nytime L 5.5*5 CreditCardSafe P .52* S&ecific'ateTime ; .$21 /uarentee9uality P .585 'iscounts ; .56( 4asslefree P .163 Co' ; .53* Easy)ind P 5.526 )acedProblems ; .16* Continue ; .88( Touc!and)eel P .35* 'eliveryProcess P .55* .oCreditCard L 3.3(2 )2O ;.3(2 Internetvs"all P.21$ -atestInfo P .38$ %ccesibility P .(55 Convenience ; .(8( Savetime P .1*5 %ny:!ere%nytime P .281 CreditCardSafe P .515 S&ecific'ateTime P .583 /uarentee9uality ; .232 'iscounts P .1*5 4assle)ree P .2$2 Co' P .1$2 Easy)ind P .2(2

Online Buying Behavior

Page 31

)acedProblems P .1(6 Continue P .$23 Touc!n)eel P .2$2 'eliveryProcess ; .$56 .oCreditCard L (.122
Classification Function Coefficients .luster 5um,er of .ase &nternet'sMall !atest&nfo *++esi,ilit.on'enien+e Sa'etime *n-/here*n-time .redit.ardSafe S0e+ifi+%ate1ime Guaranteed2ualit%is+ounts 3asslefree .ashon%eli'er4as-Find Fa+edPro,lems .ontinue 1ou+handFeel %eli'er-Pro+ess 5o.redit.ard 8.onstant9 1 6"0)) 10"113 -4" 03 5" 0 "0(( 1"3 3 5")04 4"0)0 4"1)0 1"330 "116 #"33# 1"51) 5")10 -"6#1 6"0(6 "46 3"#(# "4() 10"#(1 -3"056 3"()# - "(31 "440 6"6#( 5"135 ("3 1"(0( " 15 #"3 1 1"))) 6"4 4 "331 #"#46 "0#( "501 3 5")61 10"#13 -3"04( )"4)) - " 61 1"(05 6"(15 6"0#( 5"3#5 " #5 ")44 )"61) "0#( 6"))4 -" () ("# 5 3")0) 1"551 -116"5(5

-()"#6) -#("(31 Fisher:s linear dis+riminant fun+tions

1he a,o'e ta,le 0ro'ides the linear %is+riminant fun+tion /hi+h +an ,e used to =udge the mem,ershi0 of ea+h data set ,- 0utting the 'alue in ea+h of them> and +hoosing the one /hi+h 0ro'ides the highest 'alue" Classification 'esults(a) Predi+ted Grou0 Mem,ershi0 ?riginal .ount .luster 5um,er of .ase 1 3 % 1 3 1 51 0 1 )#"1 "0 1 3 0 1") 100"0 3 0 0 1 "0 "0 )5"5 100"0 100"0 100"0 1otal 1 5 3

4"5 "0 a )#"1% of original grou0ed +ases +orre+tl- +lassified"

Our 'iscriminant "odel is able to ex&lain 6*.1G of t!e data set correctly= :!ic! is si#nificantly !i#!= and indicates t!at t!is is a de&endable 'iscriminant "odel for &rediction.

FACTOR A$A"'S#S
T!e res&onses are &ut into SPSS for data reduction t!rou#! )actor %nalysis. T!e details of t!e above are &rovided belo:7 Online Buying Behavior Page 32

/otal 7ariance 5Bplaine# 5Btraction 6ums o' 6&uare# 9oa#ings E o' 7ariance 21.815 12.5*2 6.1(5 *.813 (.56$ $.151 5.628 Rotation 6ums o' 6&uare# 9oa#ings E o' 7ariance 18.216 12.*(6 11.66( 6.563 (.651 $.653 $.(5* Cumulative E 18.216 2(.56* 36.565 8*.$** 5$.5*6 $3.862 (5.255

=nitial 5igenvalues Compone nt /otal

E o' 7ariance 21.815 12.5*2 6.1(5 *.813 (.56$ $.151 5.628 8.*56 8.2*3 8.565 3.535 2.636 2.138 2.562 1.6** 1.$2$ 1.58$ 1.25(

Cumulative /otal E 21.815 3.*58 33.861 2.1(5 82.$$$ 1.$52 51.5*5 1.518 5*.1($ 1.2(( $8.2($ 1.56* (5.255 1.5$$ (5.556 (6.382 *3.83* *$.8$( *6.85( 61.581 63.$33 65.$21 6(.28( 6*.(63 155.555

Cumulative /otal E 21.815 2.556 33.861 2.31* 82.$$$ 2.1$5 51.5*5 1.(2( 5*.1($ 1.822 $8.2($ 1.283 (5.255 1.25(

1 2 ! ? 3 0 7 F G 10 11 12 1! 1? 13 10 17 1F

3.*58 2.1(5 1.$52 1.518 1.2(( 1.56* 1.5$$ .*(5 .((1 .(3( .585 .526 .3*8 .3(( .35* .263 .2(* .21(

Extraction "et!od7 Princi&al Com&onent %nalysis.

3e see from t!e Cumulative Percenta#e column t!at t!ere !ave been seven com&onents or factors extracted :!ic! ex&lain (5.2G of t!e total variance Iinformation contained in t!e ori#inal 1* variablesJ. T!is is an acce&table solution as #enerally= (5G of t!e total variance s!ould be ex&lained by t!e factors for t!e solution to be acce&ted. Online Buying Behavior Page 33

Rotate# Component MatriB8a" Component 1 =nternetvsMall 9atest=n'o Accesi.ility Convenience 6avetime Any,hereAnytime Cre#itCar#6a'e 6peci'ic ate/ime ;uarantee#Huality iscounts *assle'ree Cashon elivery 5asy%in# %ace#(ro.lems Continue /ouchan#%eel elivery(rocess )oCre#itCar# .(18 .566 ;.583 .(6$ .(2$ .318 .523 .2(2 .523 .5$6 .$68 ;.121 .513 ;.253 .5(1 ;.351 .112 ;.182 2 ;.2(6 .322 .15( .585 .2(5 .5(1 ;.58$ ;.16* .812 .(18 .225 ;.528 .*$6 .525 .3(6 ;.5$5 .135 ;.135 ! .186 ;.18$ .15* .252 ;.585 .153 .$5( .8$$ .$8( .25* ;.522 ;.522 .51* ;.561 .51* ;.55$ .(6$ ;.58( ? .55$ .*58 .*56 .25$ ;.515 .156 ;.58( .858 .51$ .233 ;.153 .55* .183 .5*8 ;.585 .5(6 .5$5 ;.553 3 .58$ ;.5(2 .155 .535 .51( .251 .565 ;.16( .5(1 .565 ;.126 .123 ;.583 .(** .555 ;.58$ ;.151 .5*8 0 ;.16( ;.125 .5*8 ;.5(* ;.125 .525 ;.2(1 .321 ;.128 ;.565 .325 .**2 .555 ;.525 .515 ;.163 .12$ ;.18( 7 ;.281 ;.155 .525 ;.156 .5$5 ;.538 ;.81$ .15( .356 ;.15* ;.51( ;.12$ .512 .586 ;.5(( ;.5$5 ;.556 .**5

Extraction "et!od7 Princi&al Com&onent %nalysis. otation "et!od7 2arimax :it! Maiser .ormaliAation. a otation conver#ed in * iterations.

-oo<in# at t!e rotated com&onent matrix= :e see t!at t!e loadin#s of variables;Internet &referred over mall= Convenience and Saves Time= on factor 1 are !i#! I#reater t!an 5.(J and t!us factor 1 is made u& of t!ese variables. Similarly= :e can inter&ret for t!e ot!er factors as :ell and a table for t!e same !as been &rovided at t!e end of t!is section.

Online Buying Behavior

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%actor 1

7aria.les Internet over "all Convenience Saves Time 'iscounts Easy )ind 'elivery Process Credit Card Safe to ,se /uaranteed 9uality -atest Information %ccessibility )aced Problems Cas! on 'elivery 'onEt O:n a credit card 'onEt O:n a credit card

9a.el 'or the %actor Time;bound and comfort see<in#

2 3

2alue for "oney Trust

8 5 $ (

Connected and ,& to date Problems )aced Traditionalism .H%

3e !ave combined t!e sixt! and t!e sevent! factor as t!ey #o !and;in;!and. % &erson :!o does not o:n a credit card but s!o&s online :ould invariably &refer to &ay by cas! on delivery.

PERCEPTUAL MAPS

Online Buying Behavior

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Online Buying Behavior

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Others:

Conclusions
3e found a stron# inter;de&endence bet:een a fe: variables affectin# online buyin# be!aviour. )or exam&le= :e found t!at o:nin# a credit card !as a si#nificant im&act on t!e fre>uency of online &urc!ases as credit card is t!e most &o&ular mode of &ayment on t!e Internet. %&art from t!e credit card= E;+an<in# is also slo:ly becomin# a &o&ular mode of &ayment and :e found a relations!i& bet:een &eo&le :!o use E;+an<in# and t!eir fre>uency of online &urc!ases too. Interestin#ly= :e found t!at #ender does not !ave any major im&act on t!e avera#e amount s&ent over t!e Internet in a mont!= but it does !ave a relations!i& :it! t!e fre>uency of &urc!ases. %lso= t!e income of an individual does not !ave s!o: any si#nificant relations!i& :it! t!e fre>uency of &urc!ases. T!ese findin#s are star<ly similar to t!e findin#s of C!an#in# Consumer Perce&tions to:ards Online s!o&&in# in India L I?"T= :!ic! :as a &art of our secondary data. +ased on t!e res&onses= :e could divide t!e res&ondents in t!ree clearly distinct #rou&s. 3e named t!em7 Confident Online +uyer= ,nsure surfer and "all S!o&&er. 3e :ere also able to successfully able to create a discriminant model :!ic! could &redict cluster members!i& of users. 3e could also arrive at six factors :!ic! can ex&lain t!e data :it! (5G si#nificance= t!ese factors could be cate#orised into Time;bound and comfort see<in# 2alue for "oney= Trust= Connected and ,& to date= Problems )aced= and Traditionalism. 3e also found t!at t!e most &o&ular &roduct cate#ory sold online is %irH ail Tic<ets. T!is forms a major c!un< of t!e avera#e amount s&ent by our res&ondents on t!e internet= Online Buying Behavior Page 3(

+oo<s come a close second. It must be noted t!at bot! t!e above &roducts !ave a relatively lo: touc!;and;feel need. T!ese findin#s de&ict almost t!e same ran<in# as found by %C.ielson on &o&ular services on t!e Internet. T!e most &o&ular :ebsites for t!ese :ere found to be "a<emytri&.com and 0atra.com. %&art from %ir Tic<ets= +oo<s= /ifts and Electronic Products are also very &o&ular :it! t!e Online S!o&&ers and t!ey are s&endin#= on an avera#e= s2555; s5555 &er mont! on online &urc!ases.

Online Buying Behavior

Page 3*

Annexures

Online Buying Behavior

Page 36

Annexure 1a: Agglomeration Schedule for Cluster Analysis

Agglomeration Sc*edule Cluster Stage Cluster Com%ined First Appears Stage 1 3 4 5 6 ( # ) 10 11 1 13 14 15 16 1( 1# 1) 0 1 3 4 5 6 ( # ) 30 31 3 33 34 35 36 3( 3# 3) 40 41 4 43 44 45 .luster 1 105 16 103 16 101 16 )) 16 )( 16 1) 1 #4 31 ) 6 5 43 1 4 5 45 ( (0 3) 6 4 6 15 1) 1 30 (3 34 1) 6 4 54 1 5 ( (6 31 5 .luster 106 105 104 103 10 101 100 )) )# )( #5 )1 #6 4) )4 )3 #) #1 65 ) )0 46 44 #( # 6) 64 5# 3( 33 4( #4 #3 (4 (0 5 ## (# 55 53 41 0 () 45 43 .oeffi+ients 0"000 0"000 0"000 0"000 0"000 0"000 0"000 0"000 0"000 0"000 3"000 4"000 5"000 5"000 6"000 6"000 6"000 6"000 6"000 ("000 ("000 ("000 ("000 #"000 #"000 #"000 #"000 #"000 #"000 #"000 #"500 )"000 )"000 )"000 )"000 )"333 )"66( 10"000 10"000 10"000 10"000 10"000 11"000 11"000 11"000 .luster 0 0 0 0 4 0 6 0 # 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16 0 0 0 0 11 1) 0 0 0 31 6 0 0 0 0 0 0 14 41 .luster 1 0 1 0 3 0 5 0 ( 0 ) 0 0 0 0 0 0 0 0 0 15 0 0 0 0 0 0 0 0 0 0 0 13 0 0 4 1( 0 0 0 0 0 0 0 1# 5e6t Stage 4 4 6 6 # # 10 10 ( 31 53 3 44 0 6 36 45 3 55 4# 44 4) 35 46 3( (0 5( 4) 61 36 54 64 63 54 55 50 53 6( 6# 45 65 #3 5 (3

Online Buying Behavior

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46 4( 4# 4) 50 51 5 53 54 55 56 5( 5# 5) 60 61 6 63 64 65 66 6( 6# 6) (0 (1 ( (3 (4 (5 (6 (( (# () #0 #1 # #3 #4 #5 #6 #( ## #) )0 )1 ) )3 )4 )5 )6 )( )# )) 100

3 5 6 1# 31 1 1 1) 1( 6 6 50 35 15 5 6 ( 36 1 1 15 35 16 5 # ) 5 1 3 11 ( 1 ( 16 1 ) ( 1 1 3 14 1 3 14 1 1 1 1 # 1

3) 3 60 ( 3 (1 61 4 34 4 6( 56 63 4# 1 31 (3 30 5) 50 54 1) 3# 4 1 5 6 6 (5 40 15 ( 5( 6 5 (6 51 35 36 1( ) 16 #0 )6 ) ( 1# # 14 3 10 6# 11

11"000 11"000 11"500 11"500 11"(50 1 "000 1 "000 1 "000 1 " 50 1 "333 13"000 13"000 13")33 14"000 14"000 14" #6 14"450 14"500 14"500 15"000 15"000 15" 50 15" 50 15"##) 16"000 16"5 1(" 00 1("3(5 1("653 1#"000 1#"000 1#"01( 1#"45# 1#"500 1)"000 1)"333 0"361 0"(50 1"(50 "0 ) "333 "66( 3"(#6 4"603 4"66( 6"000 (" 3 (" 50 #"000 )"506 30"(53 3 "106 34"# 5 36"000 3("0#

0 0 1 ) 3( 0 44 1 3 36 0 # 50 0 0 30 4) 4# 5( 4 0 53 40 61 60 6 10 45 (1 0 0 (3 6( 4( 0 65 (# #1 ( # 0 #3 #5 ## () 0 #) )0 )1 ) )5 )6 )( 0 )#

5 0 0 3 0 0 0 3# 35 0 0 0 46 0 0 54 5 34 33 0 5) 3) 55 0 ( 6# 63 5# 64 0 0 6) (4 0 0 0 (( 43 0 (0 66 56 (6 #4 0 0 #6 #( 51 (5 )4 )3 0 0 #0

5# () 63 6 5# )4 6 6( 61 6# #( 64 (3 66 (0 6) (1 ( (4 #1 #6 (# (1 (( #5 (4 #4 (( (# )5 ## # # )0 100 #3 #5 #( #) ## ) )3 #) ) )3 )4 )5 )( )6 )6 )( )# 100 103 101

Online Buying Behavior

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101 10 103 104 105

1 1 1 1 1

)5 13 # (( 66

3#"550 43"0#) 43"63( 4#"4 3 66")14

100 101 10 103 104

0 0 )) 0 0

10 103 104 105 0

Annexure 1b: Correlation Matrix for Factor Analysis

Correlation MatriB =nter Acc Con 6a Any, Cre# 6peci ;uara is *a Cash 5a %ace Co /ou eliv 9at )oC netv esi veni vet hereA itCar 'ic at ntee# co ssl on e sy #(ro nti chan ery(r est= re#it sMal .ilit enc im nytim #6a' e/im Hualit unt e'r liver %in .lem nu #%ee oces n'o Car# l y e e e e e y s ee y # s e l s Cor =ntern rela etvsM tion all . 1.55 . ;.58 .5$6 2* 5 553 6 5 . 1.5 . .212 13 55 $52 2 . 1.5 .156 55 55 1 . ;.5 . ;.1 ;.1($ ;.111 52 ;.1(8 51 381 86 3 . . . . ;.5*6 3( ;.58( 53 ;.525 3(8 52$ 6 5 . .11$ 23 $ . .151 12 ;.553 8

.138

.1*6

.162

;.525

.25* ;.255

9atest =n'o

.553

.1$8 ;.58$

.125

.5(*

.51$ ;.151

Acces . ;.586 i.ility $52

.238

.113

.255

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Online Buying Behavior

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Annexure 1c: A !"A Table for #egression Analysis

A)O7A8e" Mo#el Regression 1 Resi#ual /otal Regression 2 Resi#ual /otal Regression ! Resi#ual /otal Regression ? Resi#ual /otal 6um o' 6&uares 35.252 126.(1( 1$8.625 38.82( 135.863 1$8.625 33.(11 131.256 1$8.625 35.(55 138.216 1$8.625 #' 5 *1 *$ 8 *2 *$ 3 *3 *$ 2 *8 *$ 15.355 1.56* 6.$5( .555IdJ 11.23( 1.5*1 (.15* .555IcJ *.$5( 1.561 5.85* .551IbJ Mean 6&uare (.585 1.$51 % 8.36$ 6ig2 .551IaJ

a Predictors7 IConstantJ= "aritalStatus= )re>ofPurc!ase= Education= CreditCard= %#e

Online Buying Behavior

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b Predictors7 IConstantJ= "aritalStatus= )re>ofPurc!ase= Education= CreditCard c Predictors7 IConstantJ= "aritalStatus= )re>ofPurc!ase= CreditCard d Predictors7 IConstantJ= )re>ofPurc!ase= CreditCard e 'e&endent 2ariable7 %mtS&ent

Annexure $a: %uestionnaire for Ex&loratory #esearch

4i= 3e are conductin# a researc! on consumer be!avior on t!e internet. %s a &art of our ex&loratory researc! :e re>uest you to s&are a fe: minutes in ans:erin# t!e >uestions belo:. 'o feel free to as< us for any clarifications or doubts. 0our res&onses :ould serve as a base to our researc!D and :ould #uide us in discoverin# im&ortant facts about t!e buyin# &rocess. T!an<s.

1. 3!at are t!e online services t!at you #enerally use :!ile surfin# t!e net Ians:er as manyJQ

2. 3!ic! are t!e :ebsites t!at you visit fre>uently for t!e follo:in# &ur&oses7 a. E;mail7 b. C!at7 c. S!o&&in#7 d. ?ob Searc!7 e. Social .et:or<in#7 f. +an<in# and ot!er )inancial ServicesIStoc< Tradin#J7 #. Education7 !. /eneral +ro:sin#7 2. 4o: fre>uently do you s!o& onlineQ

3. If you do not s!o& online= t!en :!at are t!e reasons be!ind not s!o&&in# onlineQ

8. 3!at are t!e occasions :!en you buy onlineQ

Online Buying Behavior

Page 8$

5. 3!ile &urc!asin# online= :!at are t!e #oods and services t!at you #enerally buyQ

$. 3!at are t!e &ayment met!ods you #enerally use for online &urc!asesQ

(. 3!at are t!e different ty&es of &ayment o&tions t!at you !ave come acrossQ

*. 'o you feel it is safe to buy onlineQ

6. 3!at are t!e features t!at ma<e a :ebsite more attractive t!an t!e ot!ers :!ile buyin# onlineQ

15. On an avera#e= !o: muc! do you s&end :!ile buyin# onlineQ

11. 3!at is your #eneral ex&erience of buyin# online as com&ared to conventional s!o&&in#Q

12. 3!at additional features= do you feel= :ould en!ance your buyin# ex&erience on t!e internetQ

%ny additional insi#!ts7

.ame7 Profession7 0ears since you started usin# t!e Internet7 'o you o:n a credit cardQ 0H. 'o you use Internet +an<in#Q 0H.

%#e7 Sex7 "H)

Online Buying Behavior

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Annexure $b: Final %uestionnaire

+!%ST#O$$A#R%

'e (ould be than)ful for your coo&eration if you s&are a fe( minutes to ans(er the follo(ing *uestions:

$. !o you use the Internet regularly% &es 'o

(. On an average# how much time )per week* do you spend while surfing the 'et% a* +-( hours c* ,-$+ hours e* .reater than $- hours b* (-, hours d* $+-$- hours

/. !o you use 0-banking% &es 'o

1. !o you own a credit card% &es 'o

-. I am/would be comfortable buying the following categories of products online2 a* 3ood 4 Beverages c* 0lectronic Products e* .ifts g* ar or hotel rental b* 5pparels d* Books f* 6ickets h* Pharmaceutical Products

5ny other product# please specify

,. 7ow frequently do you purchase products/services online% a* Once a month

Online Buying Behavior Page 8*

b* (-/ times a month

c* Once in / months

d* Once in , months

5ny other# please specify

8. 9hat is the average amount that you spend per purchase while shopping online% a* : ;s -++ c* ;s $+++-;s (+++ e* < ;s -+++ b* ;s -++-$+++ d* ;s (+++-;s -+++

=. 9hich of the following web sites do you shop at% a* www.rediff.com b* www.indiapla>a.com c* www.indiatimes.com d* www.ama>on.com e* www.makemytrip.com f* www.yatra.com g*www.ebay.com

5ny other# please specify

?. ;ecall your earlier online buying/shopping e@perience and please indicate you degree of agreement with the following statements2

"trongly 5gree I prefer making a purchase from internet than using local malls or stores I can get the latest information from the Internet regarding different products/services that is not available in the market. I have sufficient internet accessibility to shop online.

5gree

'either 5gree nor !isagree

!isagree

"trongly !isagree

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Online shopping is more convenient than in-store shopping. Online shopping saves time over instore shopping. Online shopping allows me to shop anywhere and at anytime. It is safe to use a credit card while shopping on the Internet. Online shopping provides me with the opportunity to get the products delivered on specific date and time anywhere as required. Products purchased through the Internet are with guaranteed quality. Internet provides regular discounts and promotional offers to me. Internet helps me avoid hassles of shopping in stores. ash on !elivery is a better way to pay while shopping on the Internet. "ometimes# I can find products online which I may not find instores. I have faced problems while shopping online. I continue shopping online despite facing problems on some occasions. It is important for me to touch and feel certain products before I purchase them. "o I cannot buy them online. I trust the delivery process of the shopping websites. I do not shop online only because I do not own a credit card.

'ame2

.ender2

Occupation2

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Aonthly Income2

0ducation2

Aarital "tatus2

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