Online buying behaviour of consumer electronics in india

Online Buying Behaviour of

Consumer Electronics in

India

Forecast

We studied how the perceived risks and perceived benefits affected the attitude of the online shoppers and how this is in turn affected the online shopping behaviour.

• To determine the factors and attributes which influence online buying behaviour of consumers between the age group of 18-30 years

Primary Research Objective

• To determine the psychographic profile of consumers who purchase over the Internet.

• To determine the average spending and frequency of purchase over the internet by consumer.

Secondary Research

Objectives

Literature ReviewConceptual framework of the research

Source: International Journal of Consumer Studies ISSN 1470-6423

Perceived risks

of online shopping

Attitude towards online

shopping

Online Shopping Behaviour

Perceived benefits of online shopping

Methodology ParticipantsThe population for this study included age group of 18-35 years from India

Data collection procedureOur survey is in form of a online questionnaire.Total of 145 responses have been received through online survey ,out of which 125 have been taken into consideration. Rest are ignored due to higher standard deviation.

Methodology Analysis Method

For testing hypotheses of the study, regression analysis will be used

Independent Variables

Perceived Risk

• Financial risk• Product risk• Non-delivery

risk• Return policy

Dependent Variables

• Attitude• Online

Shopping Behavior

Independent Variables

Perceived Benefit• Products variety• Brand variety• Easy Buying

procedures• Lower prices• Various of mode

of payments

Hypothesis• Perceived risks which will be having negative influence on

attitude towards shopping online

Hypothesis• Perceived benefits which will be having positive influence on attitude

towards shopping online

38%

35%

21%

4% 2%Age in years

18-22

22-26

26-30

30-35

Below 18 or Above 35

53%37%

6%

1% 3%

Occupation

Student

Service

Business

Housewife

Other

82%

18%

GenderMale Female

90%

10%

Marital StatusUnmarried Married

Demographics

85%

9%

1% 1% 4%

Place from where people shop on-line

Home

Work

Internet Cafes

Other Places

Do not useCOD

Credit Card

Debit Card

Net Banking

73

27

25

21

Preferred Mode of Payment

7%

57%36%

Education Level

Undergraduate

Graduate

Post-Graduate

Mobiles & Tablets

Laptops & PCs

Televisions

MP3 Players

Cameras

74

37

2

19

14

Preferred Product for Online Shopping

Correlation Analysis

 Financial Risk

Product Risk

Non-Delivery Risk

Return Risk

Product Variety

Brand Variety

Easy Buying Procedu

re

Lower

Price

Various

modes of

Payment

Financial Risk 1

Product Risk 0.218 1Non-Delivery Risk 0.179 0.388 1

Return Risk 0.121 0.332 0.579 1

Product Variety -0.012 -0.034 0.024 0.080 1

Brand Variety -0.013 -0.110 0.031 0.091 0.534 1

Easy Buying Procedure -0.053 0.016 0.209 0.061 0.433 0.378 1

Lower Price 0.080 0.179 0.027 0.235 0.335 0.450 0.238 1

Various modes of Payment -0.113 -0.074 0.109 0.016 0.559 0.225 0.3530.212 1

Regression AnalysisRegression Statistics

Multiple R0.43767

8

R Square0.19156

2Adjusted R Square

0.137666

Standard Error0.67622

9Observations 125

 Coefficient

sStandard

Error t Stat P-valueIntercept 2.467401 0.564037895 4.37453 2.69E-05Financial Risk -0.05675 0.062767177 -0.90417 0.367797Product Risk -0.08874 0.091518675 -0.9696 0.334283Non Delivery Risk -0.04385 0.09832761 -0.44592 0.656492Return Policy -0.00189 0.09232527 -0.02047 0.983703Product Variety 0.052019 0.118004735 0.440822 0.66017Brand Variety 0.180881 0.089259458 2.026465 0.045031Easy Buying Procedure 0.058967 0.108311669 0.544418 0.587208Lower Prices -0.00295 0.09924391 -0.02971 0.976351Various Modes of Payment 0.120243 0.081052096 1.483524 0.140671

Independent Variable – Attitude towards online buying

Regression AnalysisRegression Statistics

Multiple R 0.571921R Square 0.327094Adjusted R Square 0.321623Standard Error 0.803117Observations 125

  CoefficientsStandard

Error t Stat P-value

Intercept 0.176538 0.352542 0.500758 0.617436

Attitude 0.778074 0.100626 7.732354 3.24E-12

Independent Variable – Online Buying Behavior

Summary

Among perceived

risks, Effect of none of

the independe

nt variables

on attitude were

significant at the 5%

level

Among perceived benefits, Effect of Brand

Variety on attitude is significant at the 5%

level

Effect of other

benefits on attitude were not

significant at the 5%

level

Effect of attitude on online buying

behavior is

significant at the 5%

level

Future Work & Correction• Redo the survey with following correction

Future work &

correction

Addition of independent variables –

Attractiveness of Websites,

Advertisement

Removal of the highly

correlated independent variables like

Product variety

Changing method of

measurement from likert scale to 7

point rating scale

Limitations

Because of using questionnaire as data gathering

tools, the respondents may not answer the

questions exactly according to what

they think and behave

As we discussed before, there are many

factors affecting on online shopping

behavior. But in this study because of time constraints we didn't examined all factors influencing on online shopping behavior

The methodology of this study for

analyzing the data may not be able to

fully assess the online shopping

behavior of consumers based on discussed variables

References Mohammad Hossein Moshref Javadi, Hossein Rezaei Dolatabadi, Mojtaba

Nourbakhsh1, Amir Poursaeedi & Ahmad Reza Asadollahi, An Analysis of Factors Affecting on Online Shopping Behavior of Consumers

Didier Soopramanien, Conflicting attitudes and scepticism towards online shopping: the role of experience

http://www.indiasocial.in/nielsen-global-online-shopping-report/

http://www.wirelessduniya.com/2012/01/10/e-commerce-in-india-to-explode-in-2012indian-e-shoppers-will-have-a-good-time-getting-great-deals-and-services-online/

http://yourstory.in/2012/03/indian-e-tail-market-to-be-worth-usd-12-billion-by-2016-says-anedelweiss-report-key-challenges-on-the-way/

Thank you