CUSTOMER PERCEPTION TOWARDS

ONLINE SHOPPING/ RETAILING

Mrs. Nidhi Gupta
Abstract: In the recent past Internet has got a precious place in the economic activities. It
makes the life of customers prosper and smooth. Now-a-days people show their interest on
internet. They now feel satisfied by purchasing the products online. So, this is our attempt on
study of customer perception towards online shopping. In this article we are trying to establish
the relation between customers and retailers and show how online shopping becomes a source of
making a strong relationship between them. And which kind of strategies a retailer can choose to
attract maximum number of customers toward his website and along with it trying to analyses
whether online shopping becomes successful in changing the traditional style of shopping or still
customers believe in it. So, with this article we just try to see the changing attitude and
perception of customers towards their purchasing style.

Keywords Online shopping, Perception,Consumer Attitude, Evolutionary stage, Consumer

individuality, Situational factors, Product distinctiveness, Price Consciousness

Introduction The World Wide Web has grown incredibly since its inception in 1990 and by
1991 it was opened for commercial use. The Internet explosion has opened the doors to a new
electronic world, which facilitated in taking business to another level.In the past,consumers are
using Internet for research work for exploring new options and for doing various studies, for
communicating or doing professional work but from past some time internet is also used for
online banking, and even shopping. Online shopping is a form of electronic commerce whereby
consumers directly buy goods and services from a seller over the internet without any
intermediary services.
When Jeff Bezos began selling books online at Amazon in 1995, he said, "As we grow, we will
sell everything at Amazon except Cement!" And, 17 years later, I think his words are right on
the money.

Until recently, the consumers weremainly visiting online to reserve hotel rooms, buy air, rail or
movie tickets, for buying books andelectronic gadgets, but now more and more offline product
like apparels for all segments, cosmetics, accessories, shoes and, consumer durables are now
being purchased online. At present the market is estimated at Rs.50,000 crores and is growing at

100 % per year. At present there are with so many online shopping websites such as ebay,
yebhi.com,

shopping.rediff,

fashionandyou.com

and

futurebazaar.com,
99labels.com

flipkart.com,

indiangifts

EBay andAmazon.com both

portal,

20North,

are

US-based

Companies,they have taken online shopping to an entirely new level and they are thelargest
online retailing corporations.
In India Internet Shopping trend is still in its Evolutionary stage. But now a daysincreasing
numbers of people are inclining towards more serious use of the internet due to the accessibility
of technology, the availability of information online, convince of making order,delivery of
products on their door steps, various offers and discounted price offers and the ability to
interact. Internet is making online shopping more popular among consumers.Better coverage of
technology has enlarged the prospect of developing favorable attitudes of consumer towards this
new shopping channel.
With the help of internet, consumer found that they no longer need to accept the fixed prices for
the products and services because with just a click on button, they can get goods and services at
the lowest price with higher quality. Consumers can also do comparison between products with
online as well as offline stores and after sale service facilities they will receive after purchasing
the product from a particular store. They get different product specifications and features and
easily analyze them. This will make them to compare the products very easily.
Consumer perception towards online shopping has been broadly researched by various
researchers and scholars withthe wide range of methods to compare consumer behavior in online
shopping to that of traditional offline shopping behavior. They have observed that consumers
shopping behavior in online shops is fundamentally different from that in the traditional
environment. People having high level of education, income and occupation correspond to more
favorable perception of shopping online
It is observed in various surveys that most of the consumer, making frequent online purchasing,
are those who have done online shopping many times in the pastand have developed a faith in
this process, but still there are large numberof consumers those who are not participating in
online transactions .Businesses are finding consumers are still averse to shift in this direction.
Some consumers are still having concerns regarding security of transaction, money involved in
the process and passing personal data over the Internet, risky payment modes , uncertainties about
the quality of product or services are the main reason behind the disparity between the number of

consumers visiting the site and the actual purchasing being made. Also due to computer illiteracy,
technological complexity, lack of understanding of the buying/ transaction process through internet ,due
to the lack of physical presence in a store or even lack of direct personal interaction between the buyer
and seller; problems with returning products that fail to meet expectations, and the inability to touch or
feel the product also affect consumer acceptance of buying online This left a large portion of internet

population still unconquered.

It is very important for those online businesses who want to venture into the online market to
understand their consumers perceptions, online and offline, and studying all the factors
whichinfluence consumer shopping decisions.Better understanding of all the factors will help
retailers and businesses in better serving the consumers.
In India majority of consumers are product-sensitive. They still prefer to explore each and every
option before making their final purchase to get the best product and they are not comfortable
with idea of purchasing the product without its physical presence. So now a days several
companies are coming with the idea that consumer can try the product and in case if he dont like
it they can send it back
Mass use of internet helped in changing the way goods were purchased and sold resulting in
exponential growth in the number of online shoppers
Differences can be seen in the way online buying is being done because of various consumer
characteristics and the types of products and services preferred by them The way in which online
shopping is done is not only affected by attitude of the consumer towards ease of use, usefulness
of internet and enjoyment but also by other factors like:
i)

Consumer individuality

ii)

Situational factors

iii)

Product distinctiveness

iv)

Previous online shopping understanding

v)

Faith in online shopping.

By various scholars it is observed that there are various reasons for adoption and non adoption of
online shopping practice and thesereasons are at most essential for the consumers:

1.) Price Consciousness

2.) Convenience and Variety

3.) Easy Payment options
4.) Save time
5.) Middle class population with growing spending power
6.) Challenges of Online Shopping.
7.)

Not crowded

The modern Indian consumer is technologically aware, educated and they are comfortable with
usage of internet. Consumers are attempting to shop online due to advancing technology as well
as consumer characteristics in terms of demographic, psychograhic, as well as situational
influences. Due to lifestyles of urban people becoming hectic day by day,increasing rise in the
number of working women as well as significant technical developments encourage consumers
to go for online buying, primarily for convenience and saving of time and effort.
Most of the consumers are buying selected products online because they are getting heavy
discounts online in comparison to store purchase. Now consumers started having trust on online
shopping websites. So it is clear that a trustful relationship is going to be creating between
consumers and the online businesses. Consumers are now able to take understand and are
willingly taking advantage of online shopping, they are perceiving that online shopping gives
them wide range of option with good offers, it saves time and efforts, convenient to use by just
clicking a button. Online shopping is a Hit with working professionals because now they dont
need to roam around for shopping after a hectic day in office; it saves their precious time and
efforts. But still consumers worry regarding the trustworthiness of some websites, because while
making a purchase a consumer has to share various personal details with them and also of the
threats of various scams occurred the past and of the involvement of huge time in shipping and
delivery of products.
Perception of consumers towards online shopping is getting better in India and Prosperous future
of internet shopping is expected in coming years; which will help consumers to shop from
anywhere, anything and at any time with ease and safe payment options.
Various companies have switched to online shopping businesses with the aim of cutting the
marketing costs by reducing the price of their products and services or by reducing the various
cost involved in selling the products offline so that they will be able to survive in this highly
competitive market.Itenables businesses to convey, communicate and disseminate information
regarding products andservices, influences consumers to make a purchase with their exciting
offers and also helps them in takingproduct feedback to know their level of customer satisfaction
for the aim of better serving the customers in future.
In india e- commerce market is worth about 50,000 in 2011 and around 80% of all the
transaction is related to airline ticket,railway booking,Movie tickets or mobile recharge. India
has around 10 milllion online shoppers and is growing at 40-45% per annum. Even though there

are less than 10 million internet users who are actually engaging in online shopping but there
are around 150 million internet users that ready for online shopping. With low Entry and
operational cost in india as compared to US,it worked in favour of the businesses and in 2011
and and 2012 large number of businesses have launched there online shopping spanning across a
variety of businessFrom women apparels, jewelery, shoes, accessories, Mens
fashion,shoes,kids fashion,toys to furniture, electronic items etc.
Internet provides a unique opportunity for companies to more efficiently reach the existing and
potential customers The report, E-commerce: A boon for the current economic downturn by
First Data Corporation and ICICI Merchant Services says that Online Retailing is helping
people in small towns in india to access Quality product and services similar to what people in
large towns have access to.it is being forcasted that close 60% of the online shoppers would
come from beyond the top 8 larger cities by the end of this year.
Increasing internet penetration has helped in expanding the potential customer pool. Internet
penetration is only 10% i.e is around 121 million users as against china with 36% and US with
81 %, but this number is increasing at consistent pace because of low priced broadband
connections in india.
Indians are increasingly using there mobile phones not only for searching but also for doing
online shopping as well. There is increasing number of smart phone users in india having inertnet
connection. Number of smartphone users is rapidly increasing in india and with 4G services it is
expected to favor online businesses more and getting more people online by using these services.
Currently their are around 900 million mobile users and it is expected to touch 1.2 billion mark
by 2015 and out of 900 million around 27millions are estimated to be active mobile internet user.
Out of this around 4% of the mobile internet users are buying products online by using there
mobile services and it is expected that this will increase to 20% in coming two, three years.
Currently around 10 million people do online shopping out of approximate population of 200
million credit/debit card holders. However report by First Data Corporation and ICICI Merchant
services also stated that around 150 million users or around 75 million households are ready for
e-commerce. It is indicated in their report that the Indian consumers in urban areas are now
confident enough to make online purchase of US $500 as against $ 40-100 in the recent past,So it
has indicted that not only
number of online users as increased but there has been a real incease in the total value of money
spent online. They also stated that With different levels of adoption, the e-commerce market
has the potential to grow anywhere between $70 billion and $150 billion under one
scenario, and at a more robust growth scenario it can grow between $125 billion and $260
billion by 2024-25, .
The retail infrastructure has witnessed a transformation across the world with the rapid growth
of e-commerce, especially in the past two decades.

Culture plays a significant role in forming the attitudes of consumers towards online purchasing.
Therefore, cultural conventions and regulations must be deeply studied before tap the target
c o n s u m er s .
O nline r eta iling pr ovides hu ge ma r ket ing opp or tu nit y a nd it is ver y mu c h
i m p o r t a n t f o r t h e l o n g t er m s u r v i v a l a n d s u c c es s o f t h e b u s i n e s s e s . N o w a
da ys
businesses ar e conduct ed b o t h t h r o u g h t r a d i t i o n a l m e a n s a s
well as online.
The present lifestyle is such that everyone want to save time and search for new methods of comfort and
convenience in all spheres of life.
According to a recent study by Assocham and research firm, Forrester- the e-commerce industry in India
is expected to grow from $1.6 billion right now to $8.8 billion by 2016 .It also stated that online
shopping during the forthcoming festive season is likely to go up by a whopping 350 per cent for
products like mobile phones, e-tablets, home appliances, home dcor, jewelry and apparels.
According to D S Rawat, Secretary General, Assocham, Diwali would see a spurt in shopping for
electronic items, gift articles, idols of Gods and Goddesses, sweets, clothes and jewelry due to the heavy
discount range and other offers such as free shipping, gifts and gift vouchers.
According to the report, in 2011 the population of online shoppers in Mumbai was 72 % followed by 60
% in Delhi and the figures are expected to touch 85 per cent and more than 70 per cent, respectively. 76%
of the online shoppers are male and only 24 % female.The report also spots that
38 % of regular shoppers are in 18-25 age group,
58 % fall in the 26-35 years age group,
18 per cent in 36-45 year age group and
10 per cent in the 45-60 group.
In the initial years online retailing business turned out to be a false start mainly because of three reasons:
1: poor infrastructure in terms of fast Internet connections,
2. Non availability of a sound business model
3. A bad user experience,
But the newer companies have fixed all these problems now

There are mainly three types of successful e-commerce business models:

Classic Retailing, e.g. the Amazon model

Auction and Reverse Auction sites such as e-Bay and Price Line
Group buying sites such as GroupOn and LivingSocial where the discount depends on the volume

All these models have the potential to be successful in India. There are three key factors for e-commerce
sites to be successful in India:

Challenge for e-commerce companies in Rural India.

Is to reach out to rural areas of India and delivering their products effectively. Second is to tailor the
products according to the need and requirement of the rural market. Third is, product and pricing need to
be
in
unison
even
in
the
rural
market.

Factors for booming ecommerce

Potential market because of rapid Increase in internet users
Increase in brand awareness
Hectic urban life style and traffic congestion
Availability of wider range of products
Faster buying and selling procedure because lack of manual intervention
Open and Lower price compared to shopping malls
Increased opportunities for buying alternative products
24x7x365 Open Business
Lower operating cost and no need to do physical company set-up
It allows to target niche market

Online retail in India is directly related to the overall favorable environment that has been
contributing to internet usage, viz.,
1.
2.
3.
4.
5.

Increasing young and middle age population of computer literates,

the availability of the internet,
active internet users
Falling prices of broadband services
A v a i l a b i l i t y o f i nt e r n e t s e r v i c e s o n s m a r t p ho n e s .

Suggestions
1. Understand the psyche of the Indian consumer and figure out why the Indian consumers buy
what they buy.
2. Adapt to the Indian audience. This is one of the mistakes multi-nationals make when entering
India they take the same product as in the western market. Companies need to adapt both the
product and the pricing to suit the needs of the Indian consumer. These changes include pay on
delivery, buy two products and return one (Yebhi.com does that), customised designs, western
brands in clothing, perfumes etc. Appropriate product configuration and corresponding pricing
need to go hand in hand

3. Provide a good user experience

4. E-commerce sites need to have a good tie-up with the delivery companies so customers can
have their products delivered cheaply, quickly, and safely

5. Great deals to attract more customers

6. Businesses need to create and maintain confidence related to privacy and security of
there personal information in consumer minds so as to retain them in the future.
7. Enlarge the variety of apparels,accessories,shoesetc.
8. Reduce consumer perception risk associated with security and privacy of there private
and personal information.
References
1. http://shodhganga.inflibnet.ac.in/handle/10603/2695
2. http://shodhganga.inflibnet.ac.in/handle/10603/2008
3. http://www.firstpost.com/tech/indias-e-commerce-market-to-touch-260-bn-by-2025-report255350.html

4. http://www.businessworld.in/en/storypage/-/bw/e-tailers-set-to-ride-a-spendingspree/545535.37502/page/0

5. http://www.businessworld.in/en/storypage/-/bw/shopping-without-dropping/391352.0/page/0
6. http://www.boston.com/business/blogs/global-business-hub/2012/03/the_sizzling_in.html
7. http://blog.dreamstarts.in/survival-of-e-commerce-startups-in-india/#more-161
8. http://www.ssmrae.com/admin/images/eb1bb35ed46ca5c3a8638b56236c72b8.pdf
9. http://www.ipedr.com/vol12/61-C137.pdf
10. http://www.europeanjournalofsocialsciences.com/ISSUES/EJSS_33_1_15.pdf
11. http://journal-archieves17.webs.com/297-311.pdf
12. http://shodhganga.inflibnet.ac.in/bitstream/10603/2695/11/11_chapter%201.pdf