A study on factors influencing consumer’s online shopping

1. A STUDY ON FACTORS INFLUENCING CONSUMER’S ONLINE
SHOPPING BEHAVIOUR IN COIMBATORE CITY
BY
DR. R. PRABUSANKAR
V K KARTHIK KUMAR
T ASHOK KUMAR
SCHOOL OF MANAGEMENT
SRI KRISHNA COLLEGE OF ENGINEERING & TECHNOLOGY, COIMBATORE

2. INTRODUCTION
 The craze of online shopping is increasing day-by-day and with that, the number of
online shoppers is also increasing. As a result, ecommerce companies are doing
good business.
 Many companies have started using the Internet with the purpose of reducing
marketing costs, in turn reducing the price of their products and services to stay
ahead in exceedingly aggressive markets.
 Reports says that “India’s ecommerce market would grow from $102 billion to
$119 billion by 2020. It also expects that the number of online shoppers in the
country would rise from 50 million in 2015 to 320 million by 2020.”

3. OBJECTIVES
 To understand the socio-economic profile of consumers of online shopping.
 To identify the factors influencing consumer’s online shopping behavior.
 To examine the difference between socio-economic profile of consumers and
factors influencing consumer’s online shopping behavior.
 To study the impact of factors influencing consumer’s online shopping behavior on
purchase decision of consumers.

4. FACTORS INFLUENCING CONSUMERS ONLINE
SHOPPING BEHAVIOUR
WEBSITE SECURITY
WEBSITE RELIABILITY
WEBSITE CONSUMER SERVICE
WEBSITE DESIGN

5. METHODOLOGY
 Coimbatore city has been selected purposively for the present study.
 The data have been collected from 300 consumers of online shopping by using
random sampling technique through structured questionnaire.

6. RESULTS AND DISCUSSION
1.SOCIO-ECONOMIC PROFILE OF CONSUMERS OF ONLINE SHOPPING
Socio-economic factors & analysis result
Gender Male : 62.67% Female : 37.33%
-
Age 31 – 40 years : 41.33% 21-30 years : 25.33% Rest & above 40 :
33.33%
Education Graduates : 36.67% Post graduates : 28%
Higher secondary
& diploma : 35.33%
Occupation Private sector : 40% Public sector : 36% Business & retired : 24
Income Rs.30,001-40,000 : 35% Rs.20,001-30,000 : 32.67% Above 40,000 : 33.33%

7. CONTI…
2. IDENTIFICATION OF FACTORS INFLUENCING CONSUMER’S ONLINE
SHOPPING BEHAVIOUR
 There are four factors that are extracted accounting for a total of 77.52 per cent of
variations on 15 variables. Each of the four factors contributes to 27.92 per cent,
19.56 per cent, 16.74 per cent and 13.30 per cent respectively.
 The Cronbach’s Alpha value of the scale is 0.87 showing
that each item indicates an acceptable internal consistency. It is inferred that
website design, website security, website reliability and website consumer service
are the factors influencing consumer’s online shopping behavior.

8. CONTI…
3.SOCIO-ECONOMIC PROFILE OF CONSUMERS AND FACTORS INFLUENCING
CONSUMER’S ONLINE SHOPPING BEHAVIOUR
 To examine the difference between socio-economic profile of consumers and
factors influencing consumer’s online shopping behavior, the ANOVA (Analysis of
Variance) has been carried out.
 The results indicates that the F-values are significant at one per cent level indicating
that there is significant difference between socio-economic profile of consumers and
factors influencing consumer’s online shopping behavior.

9. CONTI…
4.IMPACT OF FACTORS INFLUENCING CONSUMER’S ONLINE SHOPPING
BEHAVIOUR ON PURCHASE DECISION OF CONSUMERS
 To study the impact of factors influencing consumer’s online shopping behavior on
purchase decision of consumers, the multiple linear regression has been used.
 It is inferred that about 61.00 per cent of the variation in dependent variable
(Purchase Decision of Consumers) is explained by the independent variables
(Factors Influencing Consumer’s Online Shopping Behavior). The F-value of 26.365
is statistically significant at one per cent level indicating that the model is significant.

10. FINDINGS
 The findings of the study indicate that each of the four website factors identified has
a critical and positive impact on purchase decision of consumers through online
shopping.
 Since, the security is a very important factor for all online consumers, the company
website should ensure the safe and secure transactions and protect privacy of
consumers.
 The company website should provide reliable information and deliver products
accurately as well as timely to the consumers.
 In addition, the company should design its website in such a way to attract
consumers and by addressing consumer’s issues sincerely and promptly.

11. CONCLUSION
 The overall analysis indicates that website design, website security, website
reliability and website consumer service are the factors influencing consumer’s
online shopping behavior that also having impact on purchase decision of
consumers.
 The market is dynamic and the future belongs to technology where this analysis
helps to find out the customer behavior and optimize the online e-commerce
business to attract more customers.

12. THANK YOU
FOR YOUR ATTENTION!
ANY QUESTIONS AND COMMENTS?