BRM - Group 6 - (7B, 1B, 24B, 25B, 30B, 50B)

Buying Behaviour of online customers Indian Institute of Foreign Trade, Delhi
across large and small cities in India Group 6 - Section-B, Batch 2018-20
Business Research Report

on
Buying Behavior of Online

Customers across Large and
Small Cities in India
INDIAN INSTITUTE OF FOREIGN TRADE, DELHI
Submitted By -
Aashay Doshi 1B
Anjela Prakash 7B
HyungJun An 24B
Mohit Yadav 30B
Jyotsana Bhardwaj 25 B
Soman Pochhali 50B
Group 6
Section – B
Batch 2018-20
PAGE 0 OF 33
Table of Contents
1. Abstract ............................................................................................................................. 2
2. Introduction ....................................................................................................................... 3
2.1 Background ................................................................................................................ 3
2.2 Problem Statement .................................................................................................... 3
2.3 Objective of the Research ..........................................................................................4
3. Literature Review .............................................................................................................. 5
4. Research Hypothesis & Questions .................................................................................... 7
5. Research Methodology ......................................................................................................8
5.1 Research & Questionnaire Design .............................................................................8
5.2 Measurement Scales of the Research ........................................................................9
5.3 Data Collection Procedure .........................................................................................9
5.4 Sampling Procedures ............................................................................................... 10
5.5 Method of spreading the Questionnaire .................................................................. 10
5.6 Statistical Tools to be used ........................................................................................ 11
6. Business Research Findings & Reliability .......................................................................12
6.1 Respondents Attitude towards Online Shopping .....................................................12
7. Hypothesis Testing............................................................................................................ 13
8. Conclusions .......................................................................................................................21
9. Appendices ....................................................................................................................... 24
Appendix I – Demographic table for Primary Research and its interpretation .................... 24
Appendix II – Primary Research Questionnaire .................................................................... 29
PAGE 1 OF 33
1. Abstract
The digitisation and rise of e-commerce is giving a significant boost to online shopping
which in other words have led to a development of a unique business model for consumer
product manufacturers and retailers. Many traditional consumer businesses and new start-
ups alike are moving away from models that are shop-centric or geographically or
regionally focused, to ones that are customer-centric and virtually borderless. Adoption of
online shopping also varies depending on the culture and the shopper’s exposure to the
internet. Further Internet makes an unlimited range of products and services available to
the consumers and people can buy and sell anything, anywhere at any time. Therefore,
buying behaviour of online customers is an important factor for marketers in the present
scenario. To predict consumer behaviour on the internet, marketers need to understand
how, where and why consumers behave online. Hence, this business research paper aims
to analyse studies done by various researchers in order to explore what online channels are
generally used by consumers. The study will create more understanding about a unique,
comprehensive manner of consumer online shopping behaviour and sentiments across
large and small cities of India, products and generations. To help understand the same,
consumer online survey is needed to be conducted in the targeted Indian Market. The result
of this study may help to identify factors affecting Indian consumers’ attitude toward online
shopping among large and small cities.
Keywords: Digitisation, e-Commerce, online shopping, Marketer
PAGE 2 OF 33
2. Introduction
The introduction section of our business research paper consists of the background
research, the problem statement, research questions and the aim and the objective of the
research.
2.1 Background
Internet is one of the highly successful innovation that has grown significantly in the recent
past. Its unique characteristics in terms of flexibility and personalization is very important
from the business strategy point of view which has completely changed the way of doing
business and earning profits.
Each and every business now a days is moving from ‘brick & mortar stores’ – the
traditional style of shopping to online services facilitated by the success of the internet.
This has further been supported by the increasing interests of the consumers on the back of
reduced time & efforts and ease of purchase at the discounted prices.
With the continuous advancement in the online technology, every product is now directly
reaching to the customers (Bhatnagar, Misra and Rao, 2000). Further Internet makes an
unlimited range of products and services available to the consumers (Bhatnagar and Ghose,
2004, Forsythe and Shi, 2003) and people can buy and sell anything, anywhere at any time.
For this reason Saimee (2001) declared Internet to be “one of the most significant and
perhaps the greatest marketing tools for the global marketing place”. The goal of the
marketing place is to sale and the same can only be realised by the customers. Hence, it is
very important to understand the buying behaviour of the online customers. This
understanding of the customer behaviour will not only help in developing effective
marketing strategies but will also help in analysing the interaction between a customer and
the online shop.
Online shopping behaviour relates to customer’s psychological state regarding the
accomplishment of online buying (Li & Zhang, 2002).
2.2 Problem Statement

In the current scenario, millions of people are present online at a single point of time. Since
there are so many online purchase websites, the most important thing for businesses is to
understand the basic needs of the consumers. In the online shopping market since there is
no face-to-face contact, analysing and identifying factors that influence the consumer is
vital.
Analysing the process of shopping activities of the online customers on various facets
including key question on, “how consumer decide and make purchasing over the Internet
and what they generally buy” needs to be identified by online providers in order to satisfy
and succeed in this VUCA business environment.
PAGE 3 OF 33
In general, Customer behaviours are influenced by different factors such as culture, social
class, references group relation, family, salary level and salary independency, age, gender
etc. and so they show different customer behaviours. In addition to these various external
factors also plays a major role in deciding customer’s perception towards online buying.
These include the perceived risk (financial risk, product performance risk, and delivery
risk) and psychological factors (trust and security, and website design).
Previous research on online shopping behaviour, investigated main factors influencing
online shopping adoption in different countries. However, there has been limited number
of studies on comparison of different cities in any country particularly in India.
Hence, in this study, comparative research has been made on online buying behaviour of
consumers that are located in different cities in India segregated on the basis of top 8
metropolitan cities (Bangalore, Delhi, Mumbai, Pune, Chennai, Kolkata, Hyderabad and
Ahmedabad) as the large one and rest all as the small ones.
2.3 Objective of the Research

The objective of this study is to –
i. To comprehend what constitutes the large and small cities of India and the basis of their
categorization
ii. To examine the factors that play a role in understanding the online purchasing behaviour
of consumer groups from different cities of India.
iii. To analyze if attitude towards online shopping of Indian consumers is related to their
online buying intentions.
iv. To identify whether there is any significant difference in perceived risks towards online
shopping among Indian consumers from different cities
PAGE 4 OF 33
3. Literature Review
Internet usage in India
With over 460 million internet users, India is the second largest online market, ranked only
behind China. By 2021, there will be about 635.8 million internet users in India. Despite
the large base of internet users in India, only 26% of the Indian population accessed the
internet in 2015. This is a significant increase in comparison to the previous years,
considering the internet penetration rate in India stood at about 10% in 2011. Furthermore,
men dominated internet usage in India with 71% to women’s 29%.
With an estimate of 43.8% digital buyer penetration in 2016, online shopping is also a
popular online activity of Indian internet users. Retail e-commerce sales in India amounted
to about 16 billion U.S. dollars that year and are projected to surpass 45 billion U.S. dollars
in 2021. Mobile shopping has gained space in the country as well. About 49% of Indian
consumers stated using their mobiles for purchasing goods or services. This share is above
global average – which stood at 38% as of 2016 – and the second highest figure in the
world, only behind China.
A total of 58.81% of India’s internet users is from these eight biggest cities. Almost a
quarter of internet users in India, that implies, come from eight cities.
The five top cities among the smaller metros with a population above one million with the
highest number of internet users are Surat, Jaipur, Lucknow, Vadodara and Nagpur.
Overall, the twelve smaller metros (cities with a population exceeding one billion) have
18.67 million web users, accounting for 11% of total users in India.
Purchase Intention and consumer behavior
The e-commerce business emerged and grew up this huge only because the people didn’t
have the intention to do online shopping [studies by He et at. 2008].
As per the theory of planned behavior (TPB), the behavior to shop online is mainly
controlled by two important factors. One being the perceived behavior control of the self
and other being the attitude and perceived value by those surrounding an individual. In
bigger cites, like metro, this behavior is at it’s peak because people associate the direct
impact of this on their social status. In the smaller cities people usually take suggestions
and recommendations before making any purchase.
Financial Risk
As per the study conducted by (Kumar & Dange, 2014), there is also a risk of finances,
society and security associated with online shopping and these risks do influence
consumers attitude towards online shopping. As per another study conducted in India, these
risks might mitigate or further enhance based on customer’s past experiences or the stories
the person has heard around someone else’s past experiences.
PAGE 5 OF 33
Product Performance Risk

Yeinceri and Akin (2013) associated a products poor performance with product risk. The
risk increases as the value of product increases as with increase in value customer’s
expectations from the product also increases.
Online consumers in terms of Demography
Nagra and Gopal (2013) found in their study that, gender, income and age has significant
impact on online shopping behavior but at the same time, profession of a person had
nothing to with the same.
PAGE 6 OF 33
4. Research Hypothesis & Questions

In order to fulfil the objective of this research study, the research question has been
formulated on the basis of the problem identified –
 In what way do the demographic, social values and the culture influence people behaviour
towards their online purchase?
 What are the differences and similarities between different cities in India regarding online
buying of goods & services?
 How has online portals of shopping affect the buying behaviour of consumers?
 Why it is always sought that the online buying behaviour trend is more visible in larger cities
than in small cities?
 What role do intentions play in a consumer’s buying behaviour? and
 Which of the external online factors like safety, product risk, non-delivery risk, and
psychological factors like returning of project, high expected time for delivery, high delivery
charges etc. have more significant effect on consumers’ attitudes towards online shopping?
Based on the demographic data collected through this research paper, we’ll try to
understand the demographic difference between buyers from the small cities and that of
large cities in the India. In terms of the fact that whether the demography (mainly income
and gender) are different or along the same line for customers from both kind of
geographies. Descriptiveness and frequencies will be used to determine the general profile
of the consumers of the two different geographies i.e. the large and small cities in India.
Following alternative hypotheses has been tested out in this research paper –
H10: Friends and family do not affect the online buying behaviour
H1a: Friends and family affect the online buying behaviour
With this alternative hypothesis, the researchers want to prove that the opinions and advice
of ‘offline’ friends, families, relatives and acquaintances have a significant impact on what
people buy.
H20: People like paying upfront before receiving the product
H2a: People don’t like paying upfront before receiving the product
Some believe that customers sympathize with 100% payment prior to receiving products
from e-commerce websites. However, we want to prove that all this is a myth and still
today customers want their products to be in their hands before they make a payment.
H30: Higher delivery charge encourage the online buying behaviour
H3a: Higher delivery charge do not en the online buying behaviour
People from small cities are more reserved towards their online purchase behaviour. Such
behaviour is further lowered by the high delivery charges pushing their priorities from ease
of purchase to cost of the product.
PAGE 7 OF 33
H40: There is no difference in perceived risks towards online shopping among Indian
consumers from large cities than in small cities.
H4a: There is a significant difference in perceived risks towards online shopping
among Indian consumers from large cities than in small cities.
People living in different cities have different tendency to locate the material risks arising
out of their purchase decisions. People from large cities are more ready to take a risk while
making an online purchase as compared to the persons from small cities.
H50: Functional design of the website does not have a significant impact on the buying
behaviour of consumers
H5a: Functional design of the website does have a significant impact on the buying
behaviour of consumers.
5. Research Methodology
The research for this particular topic started with understanding the available theories and
literatures on the subject. Next, the problem and the research question was developed and
research method has been selected. The next step was to collect data by using the online
and mail based survey methods. Post collection of the data, the same has been analysed
based on the hypothesis identified in previous section using different available statistical
tools in any specialized software such as Microsoft Excel 2013 or SPSS 2016 version. At
last, the conclusion was drawn out of the same.
This research started with an exploratory study however developed into an explanatory
study since the first aim was gaining knowledge about consumer behaviour and following
with being able to understand their motives toward online consumer behaviour. After that
specific factors have been identified which are the important during the online purchase.
This knowledge is then used to find relationship between these factors.
5.1 Research & Questionnaire Design

Online purchase is a new kind of business which has gained a significant boom in the recent
times. Therefore, there is limited source of informational pieces such as academic studies
related to online group buying system in the literature such as the motives of using that
kind of sites, and the effectiveness of the system. Hence, in order to find the answers to
these questions, an exploratory research method of primary survey is pretty much needed
to understand the subject more precisely.
Analyzing the focused group surveys will help in accepting/ rejecting the null hypothesis
assumed here before. At the same time, the statistical inference drawn out from the
response will help in clarifying the concepts and eliminating impractical beliefs towards
online purchase scenarios.
PAGE 8 OF 33
Hence, for the above research, a self-administered questionnaire was designed and floated
with the motives towards the online buying. The questionnaire has been particularly
divided into three parts. The first part tries to gather basic information that the consumer
has regarding online shopping. Some examples would be to get to know about their
preferred mode of payment, their favorite site for online purchases etc. The second part
asks users to rate various questions based on their past experiences or their perceived
value of the same. The questions like how risky do they think online shopping is or how
likely do they get affected by other people’s opinion while shopping for something online.
The third part of the questionnaire tries to gather demographic data from the user to
understand how the place they belong to or their age, income etc. decide their online
purchase behavior.
Upon the receipt of answers from the respondents, every information here was collated and
analysed using the statistical analysis technique, which is a systematic approach to properly
quantify the frequency, the intensity, and the target meaning of the responses. The findings
of the research are presented in the coming section.
5.2 Measurement Scales of the Research

The two major constructs being employed in this research are ‘Online buying Behavior’
and ‘Intention to Purchase Online’ of the consumer. It may be noted that both these points
are equally responsible to identify the consumers’ risk-bearing propensity when shopping
online. The ‘Online Purchase Behavior’ is generally reflected in measurement by variables
like consumers’ concern about safety of online transactions and their privacy concerns over
personal information. These types of information have thus been measured on a likert scale
of 1 to 7 with suitably chosen anchors for measuring the logic intended for the items.
On the other hand, the ‘Intention to Purchase Online’ is being reflected in measurement by
variables like consumers’ intention to buy an item based on the relatives suggestion or
based on the attractive deals etc. These types of information have thus been measured on
the basis of the category scales as well as an on continuous numerical Likert-type scales
with suitably chosen anchors for measuring the logic intended for the items.
According to Robson (2002), the Likert scale tool can be interesting for respondents as
they usually feel comfortable while completing the responses on a scale like this. One more
benefit is the ease / convenience of carrying out the research as Neuman (2000)
recommends the actual strength of Likert scale is its simplicity and ease of use while
comprehending the possible responses.
5.3 Data Collection Procedure

The self-administered questionnaire as developed (Appendix II) was sent to approximately
300 number of persons in different cities through online and mail based methods. The 106
people who responded to the questionnaire were characterized as predominantly male
(72.6%) whose average age was approximately 21-30 years. Among the 106 people who
PAGE 9 OF 33
responded, none were excluded from data analysis as every other information filled was
correct with no biases. Thus an overall 106 usable responses were collected by means of
both mail survey and online link. About 60.4% of the respondents were students and
represented the biggest category. An overwhelming 37.7% respondents had been using
Internet for 2-3 times a month to purchase any goods or service whereas most of the
respondents were using Internet for more than 1 times per month. Please refer Appendix-
I for more information on demographic table for Primary Research and its
interpretation
5.4 Sampling Procedures

In order to address the objective of the research in an appropriate manner, the survey
respondents were selected based on the non-probabilistic sampling i.e. convenient and
judgmental sampling. Convenience sampling is a type of non-probability sampling design
which refers to the collection of information from members of the population who are
conveniently available and is most often used during the exploratory phase of a research
(Sekaran & Bougie, 2010). Hence, this type of sampling is scientifically representable and
generalizes the results of study for the entire population, considering the fact that there is
minimum difference in the population. Judgmental sampling on the other hand enabled us
to use our own understanding of the population to reach relevant sample that enabled us to
meet the research objectives.
5.5 Method of spreading the Questionnaire

Since the topic deals with behaviour of online consumers, online questionnaire method was
used. Google Spreadsheets was used for carrying out the survey. After creating the
questionnaire, link of the same was emailed to participants in different cities of India. At
the same time, it was also asked them to forward the questionnaire to their nearby cases in
order to increase the response rates.
The questionnaire was also distributed through social networking websites such as
Facebook and LinkedIn so that the respondents could easily click on the link which directly
lead them to the questionnaire.
All the results were then recorded into an excel document by the Google Spreadsheet. The
link of the questionnaire has been sent online between 28th November 2018 and 11th
December 2018.
The participation to the survey was completely voluntary and the respondents were not
required to completely fill the survey. They had a chance to stop and leave the questionnaire
at any stage.
PAGE 10 OF 33
5.6 Statistical Tools to be used

Qualitative research containing the raw data may be transformed into Quantitative one by
assigning the value to the data collected and measuring the same using descriptive
statistics. It is then followed by a calculation for each hypothesis question by using an SPSS
2016 version program. The data here in this report are presented in the form of tables and
following a detailed explanation of the figures is offered.
- Descriptive study has been carried out to draw the general profile of the respondents.
- One-sample t test has been carried out to analyze the attitudes about online shopping.
- Reliability analyses have been conducted for some data to test their internal consistency.
- Cluster Analysis is done to check the structuring.
- Multiple Regression has been done to check the significance and multi collinearity.
- Correlation analysis has been done to investigate the relationship between purchase intention
and attitudes of different cities people toward online shopping.
The research attempt to answer the question whether online shoppers from the different
cities viz. large and small as identified above in problem statement approach differently
about buying process.
PAGE 11 OF 33
6. Business Research Findings & Reliability

This section deals with the data collection and the findings of the research study carried
out. Demographics features of the respondents gathered from the set of questions
(Appendix II) is exhibited in the Appendix I.
Based on the demographic data collected through this research survey, we have understood
the demographic difference between buyers from the small cities and that of large cities in
the India. In terms of the fact that whether the demography (mainly income and gender)
are different or along the same line for customers from both kind of geographies.
Descriptiveness and frequencies has been used to determine the general profile of the
consumers of the two different geographies i.e. the large and small cities in India. All has
been explained in depth in Appendix – I.
In addition to this, various research question as formulated above has been answered on
the basis of the problem identified –
 In what way do the demographic, social values and the culture influence people behaviour
towards their online purchase?
 What are the differences and similarities between different cities in India regarding online
buying of goods & services?
 How has online portals of shopping affect the buying behavior of consumers?
 Why it is always sought that the online buying behaviour trend is more visible in larger cities
than in small cities?
 What role do intentions play in a consumer’s buying behaviour? and
 Which of the external online factors like safety, product risk, non-delivery risk, and
psychological factors like returning of project, high expected time for delivery, high delivery
charges etc. have more significant effect on consumers’ attitudes towards online shopping?
6.1 Respondents Attitude towards Online Shopping

This section particularly deals with the reliability analysis so as to see whether the scales
for the factors of online shopping are consistent. The reliability analysis aims to measure
whether the items are measuring the intended variables reliably or not. This is done with
the help of cronbach’s alpha using SPSS 2016.
PAGE 12 OF 33
7. Hypothesis Testing
The research survey conducted had 14 various questions asked (mentioned in the
appendix), wherein user had to rate on a continuous Likert scale from 1 to 7. The
researchers used factor analysis method, Multiple Regression and Cluster Analysis on
SPSS to reduce the variables to 5.
H0: factor analysis is not required
Ha: factor analysis is required
KMO and Bartlett’s test: -
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.727
Approx. Chi-
Square 408.354
Bartlett's Test of Sphericity
Df 91
Sig. 0.000
The KMO measure of sampling adequacy value is 0.727 which is great than 0.5, hence we
can conclude that the sample taken was adequate to consider that the data is normally
distributed and KMO test is significant. The significance value Bartlett’s sphericity.
test of 0.000 which is lesser than the significance level of 0.05, hence we reject H0 and
accept the alternative hypothesis. This implies factor analysis is required.
PAGE 13 OF 33
The distance between the first two points in the above line chart is highest, this
implies that factor 1 explains maximum number of variables in the given data set.
Reducing distance between the points implies that the ability to explain the
variance between the variables reduces.
Based on the factor analysis following are the 5 factors and the corresponding
questions falling under it.
F1: Online shopping is time saving, Online shopping is money saving, Impact of
functional design on buying decision, Impact of available reviews on buying
decision
F2: Impact of sale on buying behavior, Impact of paying before receiving the
product, Impact of consumer’s understanding that online buying is safe
F3: Impact of consumer’s perception on riskiness in purchasing product without
physical verification, Impact of consumer’s perception on the hassle involved in
returning a product purchased online, Impact of failure of online sellers on making
timely delivery
F4: Impact of a consumer’s behavior of more enjoyment in shopping at the store
F5: Impact of suggestions from family and friends.
Impact of all the parameters under Factor F1 on the online buying behavior of tier
I and tier II cities of India:-
Large cities Small cities

Std. Std.
Mean Deviation N Mean Deviation N
online shopping is time saving 3.1923 2.19124 26 2.7875 1.69656 80
online shopping is money saving 2.7692 1.63236 26 3.3125 1.60374 80
functional design of website 3.1923 1.44275 26 2.9125 1.35192 80
reviews available 2.8462 1.54123 26 2.5125 1.50941 80
Based on above data, we can conclude that as per the consumers in larger cities
online shopping is money but at the same time consumers of smaller cities mostly
believe that online shopping is time saving for them as well as for them functional
design of the website matters more compared to the consumers of larger cities.
Impact of all the parameters under Factor F2 on the online buying behaviour of
larger cities and smaller cities of India:-
PAGE 14 OF 33
Large cities Small cities

Factor F2 Mean Std. Deviation N Mean Std. Deviation N
online sale 3.0769 1.80938 26 2.95 1.42225 80
paying before receiving 3.2692 1.28243 26 3.3125 1.73274 80
online shopping is safe 3 1.67332 26 2.8625 1.57306 80
Based on the above data consumers of both Large and smaller cities and not very
satisfied with the fact that they have to pay for the product before they receive it.
These both consumers hence will prefer COD over other modes of payments. Also,
tendency to purchase more during sale duration is more with Small cities
consumers than with Large cities.
Multiple Regression Test-Tier1
Hypothesis:
H0: R2population<=0, There is no significant correlation
Ha: R2 population>0, There is a significant correlation
R=.693>.50, R2= .480>.25, Adjusted R2=.422>.25 and

significance (p value) = .000< .025
Therefore, by rule of thumb we conclude that the null hypothesis is rejected and there is a
significant correlation between the variables.
And the value of the Durbin -Watson test is 2.039 which is in the region.
Therefore, there is no auto correlation.
PAGE 15 OF 33
Examine the residual properties:

For the multi collinearity,
1.VIF for each variable is less than 5

2.Tolerance for each Independent variable is greater than .02
3.Variance proportion for 2N is greater than 90%
PAGE 16 OF 33
4.The condition index of all the variables is less than 30.

5.Eigen Values is not equal to 0.
Hence, Multi collinearity does not exists.
PAGE 17 OF 33
Final Results :-
Online Sales is significantly related to the following variables:
Y= .383+ .272(family and friends) + .244(paying before receiving) + .157(online

shopping is safe) + .172(online shopping is time saving) + .188(delivery charges are
high) + (-.102) (functional design of the website) + .089(visual and auditory content) +
.022(reviews available)
Multiple Regression Test-Tier2
Model Summaryb
Change Statistics
R Adjusted R Std. Error of R Square F Sig. F Durbin-
Model R Square Square the Estimate Change Change df1 df2 Change Watson
1 .650a .423 .375 1.12411 .423 8.910 6 73 .000 1.948
a. Predictors: (Constant), reviews available, family and friends, delivery charges are high, paying before receiving, visual and
auditory content, functional design of website
b. Dependent Variable: online sale
Hypothesis:
H0: R2population<=0, There is no significant correlation
Ha: R2 population>0, There is a significant correlation
R=.650>.50, R2= .423>.25, Adjusted R2=.375>.25 and
significance (p value) = .000< .025
Therefore, by rule of thumb we conclude that the null hypothesis is rejected and there is a
significant correlation between the variables.
And the value of the Durbin -Watson test is 1.948 which is in the region.
Therefore, there is no auto correlation.
PAGE 18 OF 33
Examine the residual properties:

For the multi collinearity,
1.VIF for each variable is less than 5

2.Tolerance for each Independent variable is greater than .02
3.Variance proportion for 2N is greater than 90%
4.The condition index of all the variables is less than 30.
PAGE 19 OF 33
5.Eigen Values is not equal to 0.
Hence, Multi collinearity does not exists.
Final Results: -
Online Sales is significantly related to the following variables:
Y= .478+ .315(family and friends) + .305(paying before receiving) + .220(delivery

charges are high) + (-.015) (functional design of the website) + .138(visual and auditory
content) + .090(reviews available)
Correlation test
Based on the above correlation results we can conclude that, there is a significant
positive relationship between online sale, paying before receiving and online
shopping is safe for both the large city consumers as well as consumers of small
cities. Also, for small cities there is a good positive correlation between online
sales, functional design of website, visual and auditory content and reviews
available.
There is a very high positive correlation of 0.713 between purchasing during sale
and consumer’s perception on safety of online purchase for the small cities.
Since the data is normally distributed, based on the KMO test adequacy value, we
will use independent sample t -test to test the various hypothesises.
One-Sample Statistics
Std.
Factors N Mean Deviation Std. Error Mean
family and friends 106 3.283 1.65475 0.16072
paying before receiving 106 3.3019 1.62814 0.15814
delivery charges are high 106 3.566 1.69604 0.16473
online shopping is safe 106 2.896 1.5912 0.1546
functional design of website 106 2.9811 1.37308 0.13337
One-Sample Test
Factors Test Value = 0
PAGE 20 OF 33
Sig.
(2- Mean
t df
taile Difference 95% Confidence Interval of
d) the Difference
Lower Upper
family and friends 20.427 105 0 3.28302 2.9643 3.6017
paying before receiving 20.88 105 0 3.30189 2.9883 3.6154
delivery charges are high 21.647 105 0 3.56604 3.2394 3.8927
online shopping is safe 18.739 105 0 2.8962 2.59 3.203
functional design of website 22.353 105 0 2.98113 2.7167 3.2456
Based on the data populated in the above table we can conclude that significance
values of all the variables responsible for various hypothesis tests are 0.000, which
is less that the p value of 0.05. Hence we can conclude that all the null hypothesis
(H10, H20, H30, H40, H50) mentioned can be reject and hence alternative
hypothesis (H1a, H2a, H3a, H4a, H5a) can be accepted. So for hypothesis it can
be concluded that opinions of family and friends, paying for the product before
actually receiving it, high delivery charges, consumer perception about safety while
purchasing things online and the functional design of website all of these factors
have impact on online buying behaviour of consumers of both the small and large
cities.
8. Conclusions
•Online shopping frequencies of the two samples i.e. segregated in large and
small cities are different and large cities consumers carry out online
shopping more frequently as compared to the consumers from small
cities.
•For both small and large cities consumers, a concern for security is one of
the important disadvantages of online shopping.
•For the consumers in larger cities, online shopping is money saving but at
the same time consumers of smaller cities mostly believe that online
shopping is time saving for them.
•For consumers from small cities, functional design of the website also
matters more compared to the consumers of larger cities.
PAGE 21 OF 33
•It is also found out that the consumers of both large and smaller cities are
not very satisfied with the fact that they have to pay for the product before
they receive it.
•The research has also shown that the tendency to purchase more during
sale duration is more with small cities consumers than with large cities.
•Finally, through the hypothesis, it has been concluded that all the factors
such as opinions of family and friends, paying for the product before
actually receiving it, high delivery charges, consumer perception about
safety while purchasing things online and the functional design of website
have an impact on online buying behaviour of consumers of both the
small and large cities.
PAGE 22 OF 33
References
i. Ambika Choudhary Mahajan (2014), “Internet users in India: Mumbai Tops
followed by Delhi & Kolkata”, Dazeinfo, November 5, 2014, [online] Available
at https://dazeinfo.com/2014/11/05/internet-users-india-mumbai-tops-
followed-delhi-kolkatta/ [last accessed on 5th November 2018]
ii. Arun Thamizhvanan, M.J. Xavier, (2013) "Determinants of customers' online
purchase intention: an empirical study in India", Journal of Indian Business
Research, Vol. 5 Issue: 1, pp.17-32
iii. Bhatnagar, A. & Ghose, S. (2004). Segmenting consumers based on the
benefits and risks of Internet shopping. Journal of Business Research, 57(12),
1352-1360.
iv. Bhatnagar, A., Misra, S. & Rao, H. R. (2000). On risk, convenience and
Internet shopping behavior. Communication of the ACM, 43(11), 98-105.
v. Clemes, M.D., Gan, C., Zhang, J. (2014). An empirical analysis of online
shopping adoption in Beijing, China. Journal of Retailing and Consumer
Services Volume 21, Issue 3, May 2014, Pages 364-375
vi. Forsythe, S. M. & Shi, B. (2003). Consumer patronage and risk perceptions in
Internet shopping. Journal of Business Research, 56(11), 867-875.
vii. Kumar, Mr. V., Dange, Dr. U. (2014). A study on perceived risk in online
shopping of youth in Pune: A factor analysis. Acme Intellects International
Journal of Research in Management, Social Sciences & Technology. Vol. 8(8),
pp. 1-9.
viii. Li, N., Zhang, P. (2002). Consumer online shopping attitude and behavior: An
assessment of research. Information system proceedings of English Americas
Conference. pp. 508-517.
ix. Nagra, Dr. G., Gopal, Dr. R., (2013). A Study of Factors Affecting on Online
Shopping Behavior of Consumers. International Journal of Scientific and
Research Publications. Vol. 3(6), pp. 1-4.
x. Sekara, U., & Bougie, R. (2010). Research methods for business: A skill-
building approach (5th ed.). Hoboken, NJ: John Wiley & Sons, Inc.
xi. Statista (2016), WTO Resource Central, [online] Available at www.statista.com
[last accessed on 5th November 2018]
xii. Yeniçeri, T., Akin, E. (2013). Determining Risk Perception Differences between
Online Shoppers and Non-Shoppers in Turkey. INTERNATIONAL JOURNAL
OF SOCIAL SCIENCES. Vol. 11(3), pp. 135-143.
PAGE 23 OF 33
9. Appendices
Appendix I – Demographic table for Primary Research and its interpretation

Distribution of respondents in terms of the cities and gender
The result indicated that out of 106 respondents taken part in this survey, 72.6% (77) are males and remaining women.
Gender
Particulars Total
Male Female
Small Cities
Large Cities
Percentage
Source: Compiled by Authors
Interpretation:
PAGE 24 OF 33
Distribution of respondents w.r.t their age groups
Gender
Particulars Total
Under 21 21 – 30 31 – 40 41 – 50 51 and above
Small Cities
Large Cities
Percentage
Interpretation:
PAGE 25 OF 33
Distribution of respondents w.r.t their Occupation
Gender Small Cities Large Cities Total Percentage
Student/ Not Working

Employed
Current Self Employed
Occupation Retired
In Between Jobs
Student/ Part Time Working
Total
Interpretation:
PAGE 26 OF 33
Distribution of respondents w.r.t their Education
10th pass
12th pass
Education
Graduate
Level
MBA
Post graduate
Total
Interpretation:
PAGE 27 OF 33
Distribution of respondents w.r.t their Monthly Income
0-15000
15001-25000
Monthly 25001-35000
Income 35001-50000
(in INR) 50001-75000
75000-100000
> 100000
Total
Interpretation:
PAGE 28 OF 33
Appendix II – Primary Research Questionnaire
1. What do you use internet for? (Check top 3)

 Social Media
 Research or work related
 Online Purchases
 Watching TV shows, Songs, Videos etc.
 Information Purpose
 Others
2. What all do you buy online? ( Check all that’s applicable)

 Clothes and Accessories
 Personal Care and grooming products
 CDs, DVDs, e-books, computer and phone accessories
 Books and stationary
 Grocery
 Electronics goods (washing machine, fridge, TV etc.)
 Household goods (sofa, table, chair etc.)
 Movie/ event tickets
 Travel tickets
 Hotel Bookings
 Others
3. What is your preferred mode of payment?

 Credit Card
 Debit Card
 Net Banking
 Wallets
 Cash on Delivery
 UPI
4. What is your frequency of all online purchases combined?

 0-1 time a month
 2-3 times a month
 more than 10 times a month
5. Do you visit the store/ counter before making the final purchase online?
 Yes
PAGE 29 OF 33
 No
6. Which sites do you visit for shopping? (Can select multiple options)
 Flipkart
 Amazon
 Paytm
 Bigbasket
 Grofers
 Shopclues
 Brand specific websites (shoppersstop.com, irctc.co.in, airvistara.com)
 Makemytrip
 Goibibo
 Yatra.com
 Redbus
 OYO Rooms
 Bookmyshow
 Others
7. What is your motivation to reach the above selected online portals? (Select all
applicable)
 Own research
 Recommendation by friends and family
 Online Purchase offers
 Offers on your Banking essentials
 Celebrity Branding
 Ease of Purchase
 Didn’t put much thought
 Others
8. Rank the following questions –
Like a Like a Neither Dislike a Dislike

Like a Dislike
Questions great moderate like or moderate a great
little a little
deal amount dislike amount deal
How likely are
you to buy
something
online?
How likely are
you to take
PAGE 30 OF 33
Like a Like a Neither Dislike a Dislike

Like a Dislike
Questions great moderate like or moderate a great
little a little
deal amount dislike amount deal
suggestions
from family
and friends
before making
an online
purchase?
How do you
like paying for
the product
before
receiving it?
9. Rate the following –
Some- Some-
Strongly Mostly Mostly Strongly
Particulars what Neutral what
Agree Agree disagree disagree
Agree Disagree
Online
shopping is
safe
Online
shopping
involves a risk
as you haven't
checked the
product
Returning
products
purchased
online is a big
hassle
Actual
Delivery time
is higher than
PAGE 31 OF 33
promised on
the website
I enjoy
shopping in the
store
Delivery
charges are
high
Very Less Un-

Importan
Particulars Importan OK-OK Importan Importan
t
t t t
Functional design
Visual and Auditory Content
Reviews available
Content availability (types of
product, variation of products)
10. How important are the following features to you while making your purchase decision?
PAGE 32 OF 33

BRM - Group 6 - (7B, 1B, 24B, 25B, 30B, 50B)

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

BRM - Group 6 - (7B, 1B, 24B, 25B, 30B, 50B)

Încărcat de

Drepturi de autor:

Formate disponibile

Buying Behaviour of online customers Indian Institute of Foreign Trade, Delhi

Business Research Report

Buying Behavior of Online

INDIAN INSTITUTE OF FOREIGN TRADE, DELHI

2.2 Problem Statement

2.3 Objective of the Research

Product Performance Risk

4. Research Hypothesis & Questions

5.1 Research & Questionnaire Design

5.2 Measurement Scales of the Research

5.3 Data Collection Procedure

5.4 Sampling Procedures

5.5 Method of spreading the Questionnaire

5.6 Statistical Tools to be used

6. Business Research Findings & Reliability

6.1 Respondents Attitude towards Online Shopping

Large cities Small cities

Large cities Small cities

Multiple Regression Test-Tier1

R=.693>.50, R2= .480>.25, Adjusted R2=.422>.25 and

Examine the residual properties:

1.VIF for each variable is less than 5

4.The condition index of all the variables is less than 30.

Hence, Multi collinearity does not exists.

Online Sales is significantly related to the following variables:

Y= .383+ .272(family and friends) + .244(paying before receiving) + .157(online

Multiple Regression Test-Tier2

Examine the residual properties:

1.VIF for each variable is less than 5

4.The condition index of all the variables is less than 30.

5.Eigen Values is not equal to 0.

Hence, Multi collinearity does not exists.

Online Sales is significantly related to the following variables:

Y= .478+ .315(family and friends) + .305(paying before receiving) + .220(delivery

Appendix I – Demographic table for Primary Research and its interpretation

Distribution of respondents w.r.t their age groups

Distribution of respondents w.r.t their Occupation

Gender Small Cities Large Cities Total Percentage

Student/ Not Working

Distribution of respondents w.r.t their Education

Gender Small Cities Large Cities Total Percentage

Distribution of respondents w.r.t their Monthly Income

Gender Small Cities Large Cities Total Percentage

Appendix II – Primary Research Questionnaire

1. What do you use internet for? (Check top 3)

2. What all do you buy online? ( Check all that’s applicable)

3. What is your preferred mode of payment?

4. What is your frequency of all online purchases combined?

8. Rank the following questions –

Like a Like a Neither Dislike a Dislike

Like a Like a Neither Dislike a Dislike

Very Less Un-

S-ar putea să vă placă și