[Link].

org © 2021 IJCRT | Volume 9, Issue 5 May 2021 | ISSN: 2320-2882

A Study of Consumer Behaviour towards online

shopping in Vadodara City

Aakash Alwani Suryakanti Yadav Tushar Pradhan

MBA Student MBA Student Assistant Professor

Parul Institute of Engineering & Research

Parul University Waghodai, Vadodara, India

ABSTRACT

The growing number of Interent user in India provides a bright prospect for online shopping. If E-marketers know the
key factors afffecting behaviour of customers and its relationship then they can formulate their marketing strategies
to convert potential customers into loyal ones and retaining existing online customers. This research paper highlights
on the consumer behaviours of people residing in the Vadodara City, their behaviour towards online shoppping
through e commerce websites such as Amazon, Flipkart etc.

Internet has changed the way customers were purchasing goods at the same time looking at the digital revolution
many of the companies shifted their business services online and making shopping easy and accesible to their finger
tips at the same time providing customers more fancy discounts in order to survive in this highly competitive market.

Keywords: online trends in India, Consumer behaviour in Vadodara city,

Introduction.

The internet is being developed rapidly since last two decades, and with relevant digital economy that is driven by
information technology also being developed worldwide. After a long term development of internet, which rapidly
increased web users and highly speed internet connection, and some new technology also have been developed and
used for web developing, those lead to firms can promote and enhance images of product and services through web
site.

There are many reasons for such a rapid developing of internet shopping, which mainly due to the benefits that
internet provides. First of all, the internet offers different kind of convenience to consumers. Obviously, consumers do
not need go out looking for product information as the internet can help them to search from online sites, and it also
helps evaluate between each sites to get the cheapest price for purchase. Furthermore, the internet can enhance
consumer use product more efficiently and effectively than other channels to satisfy their needs. Through the different
search engines, consumers save time to accessto the consumption related information, and which information with
mixture of images, sound, and very detailed text description to help consumer learning and choosing themost suitable
product.

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However, internet shopping has potential risks for the customers, such as payment safety, and after service. Due to the
internet technology developed, internet payment recently becomes prevalent way for purchasing goods from the
internet. Internet payment increase consumptive efficiency, at the same time, as its virtual property reduced internet
security. After service is another way to stop customer shopping online. It is not like traditional retail, customer has
risk that some after service should face to face serve, and especially in some complicated goods.

In last two years many e-commerce websites have come up and competing one another with striking deals like free
shipping, coupons, free gifts, easy return policy, and many others. The latest data reveals that Flipkart, Amazon,
Snapdeal, Paytm, Myntra, eBay, Jabong, Shopclues, Homeshop 18, and Infibeam are the top ten e-commerce websites
in India. Flipkart is one of the biggest Ecommerce giant that arrived as the top among e- commerce websites in India.

OBJECTIVE

With an outlook to every marketing research it has been conducted for specific objective. It must have clear cut
problem based on it. The objective must also be clearly [Link] that research gets clear idea about their task.
Thus it is atmost important to define Research objective. The purpose of the research is to discover answers through
the application of scientific procedures.

The main aim of the research is:

 To find out consumer behaviour towards online shopping in Vadodara city.

The secondary objectives of the reseach are

 To identify consumers perception towards online purchasing

 To identify consumers online buying behaviour
 To identify consumers prefference towards different websites
 To identify consumers perception towards mode of payment.

PROBLEM STATEMENT

A reseach problem in general refers to some difficulty, which a researcher experience in the context of either a
theoretical or practical situations and wants to obtain a solution for the same.

Online websites like flipkart,Amazon,[Link], myntra have becomme very popular and communication tool for
networking,communication and business. People spends hours on online shopping websites doing search for
particular products. Sellers are now becoming active about online shopping that how people are now shopping online
and through which websites they are surfing and purchasing.

As of increasing numbers of online shoppig from websites like Amazon, Flipkart, Myntra to look for increasing trend
of online shopping in Vadodara city, we took this research topic: “ A Study on Consumer Behaviour towards
online shopping in Vadodara City.”

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Factors Influencing customers trust for online shopping through e comeerce websites

Online Shopping is a form of electronic commerce whereby customers directly buys goods or services from seller
over the internet without any intermediary services.

 Easy to find
 Products can be cheaper
 Save time and Energy
 Integrity
 Security and Privacy
 Usefull Information
 Convenince in use
 Web Design
 Mouth to mouth publicity
 Logistics and Supply chain
 Payment and Comission
 Market size

Challenges faced by Indian Consumers

 Speed of Internet
 Language Barrier
 Plastic Money
 Inefficent and delayed service
 Overpricing of products
 Return and exchange of goods

Measures to be taken to make it popular in India

 E Commerce awarness
 Varied payment options
 Awarness regarding security measure
 Highlight the benifit of shopping at home
 Make the prices more competitive
 Stress on special offers
 Emphasis on After sales service
 Cyber law due deligence in India

LITERATURE REVIEW

There are a number of research works have been done by researchers but only a few has been given, related to the paper.
Brown (1987) has suggested that the costs of a retail format refer to consumers‟ costs. Consumers incur non-monetary
costs - time, effort and psychological costs - as well as monetary costs. Savings in non-monetary costs are especially emphasized
by non-store formats. Their appeal to consumers has been the ease and convenience of shopping, freed from location and other
constraints.

According to Rao (1999), E-commerce offers increased market activity for retailers in the form of growing market access
and information and decreased operating and procurement costs. The consumers can gain better prices due to the competition and
also can enrich their knowledge on goods and services.

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Zhang and von Dran (2000) have found that certain aesthetic elements of a web-site are considered as purchase
motivators, while other aesthetic elements serve as hygienic factors (i.e., necessities) in purchase decisions from e-retailers. The
colour and background images of web-page are also found to affect consumer choice.
Tractinsky and Rao (2001) have argued that computer users, particularly those who seek online substitutes to the physical
shopping experience, would value aesthetic designs just like consumers of other commodities.

Ratchford et al. (2001) have told that through Internet, consumers can gather information about merchandise and they
compare a product across suppliers at a low cost. They also can effectively analyze the offerings and easily locate a low price for
a specified product.

Eroglu et al. (2001) have advocated that the most important thing in the traditional retailing is physical store setting.
According to them, it is largely determined by the cost of real estate and the various physical objects required creating different
sounds, aromas, colours and lighting.

Online constraints tend to be related to the screen resolution and the hardware that exists at the consumer end of the
channel. The hedonic factors in designing the web-site interface can be enhanced with symbolic, nonverbal elements, which can
be created by images, colours, fonts and videos and music. Zeithaml (2002) has defined that the success of e-tailing depends on
the efficient web site design, effective shopping and prompt delivery. The other e-store services are delivery on real time, return
and replacement process, period of filling out online orders form, speed of response time to e-customers‟ queries.

Kim and Lee (2002) have suggested that the design of e-store influences consumers‟ access to e-store. In the e-store,
website design, design of product and service comparison and information, time to complete online order form, easy of searching
product and service, screen layout, screen complexity, page composition, information retrieval methods, information display, use
of colour and background, assistance to the user and speed of accessing the e-store are notable factors attracting e-customers.

Doolin (2004) has specifically pointed out that e-tailing is the sale of products and services to individual customers.
According to him, the definition of e-tailing encompasses the sales of products or services online.

Rabinovich (2004) and Cao and Zhao (2004) have identified the challenges of e-tailing industry. This challenge begins
with the response time of the web-server; moves to the amount of time the customer must wait until the order ships, and also
includes the time the shipping process takes.
Delone and Reif (2004) have found that at present customers are more likely to continue shopping online when they have
a greater experience of online shopping. It is also found that young adults have a more positive attitude towards online buying.

Lavie and Tractinsky (2004) have expressed the expressive aesthetics of web-sites that convey a sense of creativity and
uniqueness. This type of aesthetics is likely to serve an important role when shopping for specialty goods. The expressive design
is relevant to specialty goods because of their unique characteristics that emphasised the shopping experience.
Bauer et al., (2006) have compared the services of online retail service vs. traditional retail services. They have
identified that the online retail services are broken into two rather distinct phases: the client interaction phase taking place online
and the fulfilment phase taking place offline. They also have suggested that web-site quality is a matter of delivering both hedonic
and utilitarian elements.

RESEARCH METHODOLOGY:

In this reseach we are aiming to find consumer behaviour towarrds online shopping through different websites in Vadodara city.
Consumer perception towards different category of products their satisfaction after purchasing and services provided by different
e commerce gaints after purchasing, mode of payment,age from teenagers to adults how age affects online shopping,customer
satisfaction,their loyalty towards different websites.

RESEARCH DESIGN:

Descriptive reseach design

Source of data:

The primary data is collected by survey only. The survey was done through a structured questionnaire which is in google form.

Seconday data: The source of secondary data is in journals,articles, research papers,online sites, websites and many more sources
which are available on online or offline platform.

Sampling Frame:

Our sample frame wll be limited to the Vadodara city(Gujarat State) in which we will include people with different age groups.

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Sample Size:

The sample size will include minimum of 100 responses from people of different age group from Vadodara city.

Sample unit:

The age limit of respondents will be 20- 35(above)

Method of data collection:

Questionnaire

Sampling Technique:

Selection of respondents will be done by convenience sampling(non-probablity)

Stastical tools for analysis: Percentage method and graphical method have been used to analyze the data.

LIMITATIONS OF THE STUDY

As with any research this study has limitations. All respondents that partcipated in the study are from one city(Vadodara).
Therfore data produced from this study may not fully represent the general population throughout India.

FINDINGS

Data Analysis

 Among all the 113 respondents 43.4% was of 25-30 age group,31.9% was 20-25 age group,15% were above
35 age group and 9.7% 30-35 age group.

 Among all responses 62.2% were Female and 37.8% were Male

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 Below Pie Chart shows how frequently people used to buy through E- Commerce websites.

 How do people of Vadodara city get to know about the products that they purchased online and according to
responses 37.8% repondents get to know through advertisments,27.8% through freinds and 27.9% through
social media.

 According to the responses 38.7% respondents preffer Myntra for Cloths Shopping, 27% preffer Flipkart,
23.4% Amazon, 9.9% Snapdeal.

 What motivates people to buy product online and among all the responses 41.4% respondents admit that they
save a lot of time and energy as they didn’t need to travel to shop, 23.4% respondents say as there is no
hidden cost they preffer shopping online, 28.8% respondents say that they have wide range of products and
variety which helps them choose better product and deal.

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 Among all the responses 27.9% respondents preffer Google pay as their payment gateway, 22.5% use Phone
pe, 27% use Debit/Credit card, 19.8% use Paytm.

 What are the crucial factors that affect people’s decision while shopping online and making the final purchase
and among all the responses 32.4% respondents choose online platform as the products are not available in
local stores, 30.6% say that it is convinient and time saving, 18% respondents purchase as they are offered
best prices compared to local stores, 12.6% respondents preffer online shopping as all the product reviews are
available.

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 Among all the responses 70.3% respondents visit retail shop before final purchase of product, while 29.7%
respondents dont visit retail shop before the final purchase.

 What are the product categories that people purchase online and as per the responses 39.6% respondents
purchase Clothes, 36.9% electronic products, 23.4% include other categories of products.

 What are the main barriers that keep people away from online shopping and among all the responses 24.3% is
refund policy, 20.7% is safety of payment, 18.9% is high shipping cost, 18% is value added tax, 9.9% is
warraty and claims of product after purchase.

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 Among all the responses 54.5% respondents experience was Good after online shopping, 23.5% respondents
experience was Average and 20.5% respondents experience was excellent after purchasing product online.

CONCLUSION

 On the basis of the present study and all the responses collected through Quesstionnaire concludes that people
of Vadodara city are overall satisfied through online shopping compared to retail stores.
 Some of the barriers that affect consumer behaviour in online shopping is safety of payments,value added tax
in some products, high shipping cost and warranty claims of products..
 The purchase pattern is observed mostly in 2 to 3 months which shows that consumer who are well aware of
shopping mostly preffer shopping online in all the categories whether it be clothes, electronic products,
grocery etc.
 Online shopping has come up as a boon for all type of consumers and it has something to offer everyone,
despite of this fact that it is highly convenient and time saving and to certain it also cost cutting exercise as
one need not step out of his/her home for doing shopping.
 The main area of concern is the limited internet usage and the language problem in rural areas but that has
only been improving as India is tremendously moving towards degitalization and making internet available at
each and every corner in India.
 As in Vadodara city people are moving towards online shopping compared to visiting retail shop, during this
Pandemic and to protect themselves from COVID 19, people living in Vadodara city preffer to buy most of
products from Amazon, flipkart, Myntra and avoid going out to protect themself.
 Consumer are getting much more discounts,and variety of products and most importantly reviews by
customers itself on apps and on youtube, so by summing up all these points we can conclude that people in
Vadodara city make purchase much frequently through online shoppig.

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