2.

RESEARCH METHODOLOGY

2.1 Introduction
The previous chapter illustrated various theoretical concepts that form an integral part of
present research. These topics included reasons of buying through online channels and
factors influencing e-consumer behavior provides a background to the influences that have
shaped e-consumer behavior. This chapter will build on the overview in section 1.9 of the
first chapter of Introduction. Further evidence was provided to support the appropriateness
of the research methodology for investigation.

This chapter describes the research approaches research methodology used in the study. The
research design, sampling design, scale of development used in the study was presented. A
description of data collection & statistical techniques utilized in the study was provided.
This chapter is organized as follows, in the first part research design and sampling design
were described. In the second part scale of development, questionnaire design and data
collection techniques were described. In the last part Statistical analysis of data and
statistical techniques were discussed. At each stage, the rationale for each action was
discussed explaining the reason behind those actions and making specific design choices.

2.2 Research Design

A research design is a plan, structure and strategy of investigation so conceived as to obtain
answers to research questions or problems. The plan is the complete scheme or program of
the research. It includes an outline of what the investigator will do from writing the
hypotheses and their operational implications for the final analysis of data. (Kerlinger,
1986). Burns and Grove (2003) define a research design as a blueprint for conducting a
study with maximum control over factors that may interfere with the validity of the findings.
Parahoo (1997) describes a research design as a plan that describes how, when and where
data are to be collected and analyzed. Polit et al (2001) defines a research design as the
researcher’s overall for answering the research question or testing the research hypothesis.
Research design is the arrangement of conditions for the collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
In fact, the research design is the conceptual structure within which research is conducted;

26
it constitutes the blueprint for the collection, measurement and analysis of data. It also
involves identifying gaps in knowledge, verification of what is already known and
identification of past errors and limitations. The strength of what you find largely rest on
how it was found. Research design is needed because it facilitates the smooth sailing of
various operations, thereby making research as efficient as possible, yielding maximal
information with minimal expenditure of effort time and money. A poorly designed research
fails to exact answers to the questions under investigation. Every research problem is unique
(Hair et al. 2006) and therefore research design has to be appropriate for the research
objectives.

Figure 2.2.1: Representation of the Research Design Employed

Research Designs commonly used can be categorized as research design in case of

exploratory research studies, research design in case of descriptive & diagnostic studies.
Exploratory research studies used for formulating a problem for more precise investigation
or for developing the working hypothesis from an operational point of view. Descriptive

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research designs. Descriptive research studies are those studies which are concerned with
describing the characteristics of a particular individual, or a group. Diagnostic research
studies determine the frequency with which something occurs or its association with
something else. After considering these research designs, the researcher evaluates the
characteristics of quantitative and qualitative research methods. Quantitative Research used
to quantify the problem by way of generating numerical data or data that can be transformed
into useable statistics. It is used to quantify attitudes, opinions, behaviors, and other defined
variables and generalize results from a larger sample population. Quantitative Research uses
measurable data to formulate facts and uncover patterns in research. Quantitative data
collection methods are much more structured than Qualitative data collection methods.
Quantitative data collection methods include various forms of surveys online surveys, paper
surveys, mobile surveys and kiosk surveys, face-to-face interviews, telephone interviews,
longitudinal studies, website interceptors, online polls, and systematic observations.
Qualitative Research is however used to gain an understanding of underlying reasons,
opinions, and motivations. It provides insights into the problem or helps to develop ideas or
hypotheses for potential quantitative research. Qualitative Research is also used to uncover
trends in thought and opinions, and dive deeper into the problem. Qualitative data collection
methods vary using unstructured or semi-structured techniques. Some common methods
include focus groups, individual interview and observation. The sample size is typically
small and respondents are selected to fulfill a given quota.

Cross sectional design is used in the present study as the information from any given sample
population element is collected only once. Cross-sectional study enables researcher to
explore a research phenomenon thoroughly in different areas of culture and society at a
certain point in time. Cross-sectional study also enables to choose your research point of
view flexibly. The focus of your cross-sectional study is not primarily temporal change, but
the qualities, features, conditions and appearances of the phenomenon at a chosen point of
time.

Quantitative research method was suited mostly for current research for face to face
interview and telephonic interview. Information and Data of the e-consumer behavior was
rarely available since very few research studies were conducted on e-consumer behavior in
India & Maharashtra state. Thus the only data source that allows to study e-consumer
behavior towards online purchases of electronic products is through surveys, personal

28
observation and case studies. For this study; a cross sectional survey was considered
appropriate as it is difficult and time consuming to gather data from e-retailers for a
succession of years.

However a cross sectional research may give rise to several methodological problems such
as reliability of data and measurement error, previous empirical studies have employed a
standard set of variables and estimation techniques that yield fairly built relationships
between the research variables. This study chooses most of these practices, whenever
possible while mounting them with factors that are suited for the current research. After
planning the elementary research design process the next subsections provide point wise
information on research methods employed in this research.

2.3 Sampling Design

A sample design is a definite plan for obtaining a sample from a given population. It refers
to the technique or the procedure the researcher would adopt in selecting items for the
sample. Sample design may as well lay down the number of items to be included in the
sample, i.e. the size of the sample. Sample design is determined before data are collected.
There are many sample designs from which a researcher can choose. Some designs are
relatively more precise and easier to apply than others. The researcher must select/prepare
a sample design which should be reliable and appropriate for his research study.

Following criteria were applied for Inclusion and Exclusion of the sample
I. Inclusion Criteria
 E-Consumers of Maharashtra State who had done online shopping of electronic
products at least once and whose minimum qualification was at least Graduation.
 E-Consumers taken from metropolitan cities assuming high internet diffusion rate.
Since online purchases are done only in metro cities/ urban areas, had selected
respondents only from metro cities in Maharashtra State.
II. Exclusion Criteria
 E-Consumers who of Maharashtra State who had done online shopping for other
products (Excluding Electronic products) were excluded from the study; because the
research was conducted only for consumers who had done shopping of electronics
products online.

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  E-Consumers from rural areas were excluded from the research; because product,
service & delivery was not available in rural areas.

Setting and Population Appropriateness

According to Marshall and Rossman (1999) during the research design phase of a project,
the investigator needs to consider a rationale for identifying and using a particular setting as
a data collection site. Following for key selection criteria that have been met
A. Entry or access is possible.
 All the electronic product e-retailers who provide services in Maharashtra State were
agreed to organize the data of e-consumers with the condition of the secrecy of the
name of participants and other details.
B. The appropriate people (target population) are likely to be available.
 All the electronic product e-retailers who provide services in Maharashtra State were
agreed to organize the data of e-consumers who had done shopping of electronic
products (Mobiles, Tablets & Laptops) recently.
C. There is a high probability that the study's focuses, processes, people, programs,
interactions, and/or structures that are part of the research question(s) will be
available to the investigator.
 All the electronic product e-retailers who provide services in Maharashtra State were
agreed to make their people available for interaction and allowed to spend time for
the understanding of their programs, processes and structures.
D. The research can be conducted effectively by an individual or individuals during the
data collection phase of the study
 Research data was collected effectively during the data collection phase since
samples were easily available at time from e-retailers.

2.3.1 Research Population

According to Frankel & Wallen (2006) Sampling refers to the process of selecting
individuals from a larger group of people and drawing conclusion that are an accurate
representation of how the larger group of people acts or what they believe.

First, the researcher must clearly define the target population. In research, population is a
precise group of people or objects that possesses the characteristic that is questioned in a
study. To be able to clearly define the target population, the researcher must identify all the

30
specific qualities that are common to all the people or objects in focus. Population or
universe means the entire set people data or things that is the subject of exploration. The
population considered in this study consists of e-consumers of who had done online
shopping of electronic products in Maharashtra state

Maharashtra has emerged as the second most active state in India vis-a-vis online shopping,
after Delhi, and followed by Tamil Nadu, Rajasthan and Karnataka according to online
shopping company eBay's 'India Census 2014'. Mumbai, the financial hub of the country, is
among the top three cities in India when it comes to making online purchases, said the
Census. Besides Mumbai, Nashik, Nagpur, Pune and Aurangabad were among the top
five e-commerce hubs within Maharashtra. Among products, consumers in Maharashtra
shopped most for mobile phones and accessories, followed by women perfumes and beauty
products. As much as 70 per cent of the total shopping from online portals in the state was
in the electronics segment, followed by 38 per cent in lifestyle. The population targeted in
this study included e-consumers of electronic products from metros cities of Maharashtra
state. The sample comprised of both males and females e-consumers.

2.3.2 Sampling Frame

A sampling frame is the list or quasi list that closely approximates all the elements or units
of analysis from the population (Neuman, 2006). A sampling frame is the actual list of
sampling units from which the sample is selected. Welman and Kruger (2001) stated that a
sampling frame is a complete list on which each unit of analysis is mentioned only once.
The following factors were used as the basis of the selection of samples, popularity, ranking,
unique visitors, product availability and customer reach. Popularity and ranking of e-
retailers were important factors because once e-retailer was popular amongst the e-consumer
sample gets easily available. The e-retailer with most unique visitors customer reach gets
higher. The e-retailers engaged in sales of electronic product availability all across metro
cities of Maharashtra state were selected. Large e-retailers were selected which were
operational in Maharashtra state and also operators in different geographical locations in
India. The study was conducted in six select metro cities of the Maharashtra state
considering the time and cost involved in collecting data. The regions that were selected for
the study were Amaravati, Aurangabad, Nasik, Nagpur, Pune and Mumbai.

31
One of the greatest pitfalls in conducting research successfully is the inability to obtain
access to the research field. Researchers often spend a considerable amount of time on this
task, especially when the research requires an in-depth study of their respective research
field (Shenton and Hayter, 2004). Initial two attempts of access of e-consumers data were
declined due to data security concerns by e-retailers. Leadership team applied constraints to
the research to minimize any risk to the companies. They agreed given the nature of PhD
study; they accepted. However, they requested that data should be gathered within a time
frame of six months. Due to time and financial constraints on the part of researchers, a
census usually disregarded as unfeasible, that is not all the members of the population are
being surveyed.

A sample is a subgroup of a population (Frey et al. 1992). The sample should be

representative in the sense that each sampled unit will represent the characteristics of a
known number of units in the population. The following explains in more detail the methods
used in selection of sample of this study. The companies were identified from the list of
Department of Electronics’ and Information Technology (deity) Government of India and
Ministry of Commerce and Industry Government of India and Industries Department
Government of Maharashtra.

Response

e-consumers of
electronic products in
Maharashtra State
(Sample)
e-consumers in
Maharashtra
(Sampling Frame)

e-consumers in India
(Population)

Figure 2.3.1: Sample selection

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The composition of the sample which was selected from the list of following:

Table 2.3.1: E-tailing Statistics

INDIA MAHARASHTRA

REGISTERED
MARKET ELECTRONICS REGISTERED ELECTRONICS
E-RETAILERS USERS
SHARE (million) USERS (million)
(million)
(million)

Flipkart 44 15.4 5.24 1.43 0.49

Snapdeal 32 11.2 3.81 1.04 0.35

Amazon 15 5.25 1.79 0.49 0.17

Others 9 3.15 1.07 0.29 0.10

Total 100 35 11.90 3.25 1.10

Source: Survey IAMAI & IMBR (2014)

2.3.3 Determination of Sample Size

Sampling is an indispensable technique of behavioral research. The research work cannot
be undertaken without use of sampling. The study of the total population is not possible and
it is also impracticable. The practical limitation: cost, time and other factors which are
usually operative in the situation, stand in the way of studying the total population. The
concept of sampling has been introduced with a view to making the research findings
economical and accurate. Sampling should be such that the error of estimation is minimized.

According to IAMAI & IMBR survey in 2014 (Table 2.3.1) total 1.10 million registered
users who had purchased electronic products in Maharashtra state at least once.

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Following formula was used for determining the sample size. Sample Size calculation
formula where the population is greater than 50,000 (Population of this study is 11, 00,000)
is
𝟐
𝒁 𝒑(𝟏 − 𝒑)
𝒏=
𝑪𝟐
𝒏 = Sample Size
𝒁 = Z-value A (1.96 for a 95% level)
The Z-values for confidence levels are:
1.96 = 95% & confidence level
𝒑 = Percentage of population picking a choice, expressed as decimal B
𝑪 = Confidence interval, expressed as decimal (e.g., .0438(for approximate value) = +/- 4
% points)

𝟐
𝒁 𝒑(𝟏 − 𝒑)
𝒏=
𝑪𝟐
𝟐
𝟏. 𝟗𝟔 𝟎. 𝟓(𝟏 − 𝟎. 𝟓)
𝒏=
𝟎. 𝟎𝟒𝟑𝟖𝟐
𝟑. 𝟖𝟒𝟏𝟔 × 𝟎. 𝟓 × 𝟎. 𝟓
𝒏=
𝟎. 𝟎𝟎𝟏𝟗𝟏𝟖𝟓

𝒏 = 𝟓𝟎𝟎

Thus the sample size for this research is equal to 500.

To validate the correctness of the sample size it was cross checked with online calculator
(https://fluidsurveys.com/survey-sample-size-calculator) and similar value was obtained hence
the total sample size of 500 was finalized for the research study.

2.3.4 Sampling Strategies

Sampling is a more efficient way for data collection by using a sample to draw conclusions
is known as statistical inference. Making inferences are a fundamental aspect of statistical
thinking. Sampling strategy is the plan set forth to be sure that the sample used in the

34
research study represents the population. The Techniques for selecting samples are
classified as

(i) Non-Probability Sampling

(ii) Probability Sampling

Non-probability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being included in the
sample. The three main methods of non-probability sampling, are convenient sampling,
quota sampling and purposive sampling.

Probability sampling is also known as random sampling. Under this sample design, every
item of the universe has an equal chance of inclusion in the sample. The four main methods
of non-probability sampling, are simple random sampling, stratified random sampling,
cluster sampling and systematic sampling.

For this study, the simple random sampling technique was used to select the sample as it
gives each possible sample combination and equal probability of being picked up and each
item in the population to have an equal chance of being included in the sample. To create a
simple random sample, there are six steps:

I. Defining the population

II. Choosing the sample size
III. Listing the population
IV. Assigning numbers to the units
V. Finding random numbers
VI. Selecting the sample

The first step in simple random sampling is define the population. All e-retailers which
provide online shopping services in Maharashtra state were firstly identified, then e-retailers
of electronics category were separated. Amongst all e-retailers top eight e-retailers were
selected for the study. E-consumers who had done online shopping of electronic products
from these e-retailers were taken as the population of the study.

The second step in simple random sampling is choosing sample size. Maharashtra state was
selected as a research area. Maharashtra was geographically divided into six regions

35
Amravati, Marathwada, Konkan, Nagpur, Khandesh and Pune for convenience in data
collection. Further Regions were bifurcated into districts and finally metropolitan cities were
selected for sampling, assuming high internet diffusion rate in urban areas. Online purchases
were done majorly done in metro cities/ urban areas, hence metro cities/ urban areas were
selected as a sample.

Table 2.3.2. Geographical Distribution of Sample Size

Region Districts Selected City Sample size

Amravati, Buldana, Akola,

Amravati Region Amravati 50
Washim & Yavatmal
Aurangabad, Jalna, Parbhani,
Aurangabad Region Hingoli, Beed, Nanded, Aurangabad 100
Usmanabad & Latur
Mumbai, Thane, Palghar, Raigad,
Konkan Region Mumbai 100
Ratnagiri, & Sindhudurg
Nagpur, Vardha, Bhandara,
Nagpur Region Godhiya, Chandrapur & Nagpur 50
Gadchiroli
Nasik, Dhule, Nandurbar, Jalgaon
Nasik Region Nashik 100
& Ahmednagar

Pune, Satara, Sangali, Kolhapur &

Pune Region Pune 100
Solapur

500
Total

The finalized 500 sample size for the study was bifurcated amongst six metro cities as per
online population, e-consumers availability and convenience.
The third step in simple random sampling is listing the population. Sample size of 500
respondents was listed according to the city, to make data collection more convenient.

36
The fourth step in simple random sampling is assigning numbers to units. Selected metro
cities were assigned numerical codes like Mumbai (I), Nasik (II), Pune (III), Aurangabad
(IV), Amaravati (V) and Nagpur (VI).

Table 2.3.3. Numerical codes for selected city

Codes Selected City Sample

I Mumbai 100

II Nashik 100

III Pune 100

IV Aurangabad 100

V Amravati 50

VI Nagpur 50

The fifth step in simple random sampling is finding the random numbers. Available e-
consumer data from all the e-retailers were collated into one list. These random numbers
were generated by using online computer program Pseudo-Random Number Generators
(PRNGs). PRNGs are algorithms that use mathematical formulae or simply pre-calculated
tables to produce sequences of numbers that appear random. Pseudo-random number theory,
and modern algorithms for generating pseudo-random numbers are so good that the numbers
look exactly like they were really random. Random numbers were generated city wise from
the available e-consumer data available with the help of a random integer generator.
(https://www.random.org/integers)

Data of 150 e-consumers were available for Mumbai city (Code I) following were the 100
random numbers generated in the system. 100 randomly generated respondents were
selected for Mumbai as a sample.

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 Random Numbers: for Mumbai I

57 55 69 135 145 111 135 150

127 36 100 51 119 114 140 48
4 39 71 132 84 69 150 34
116 72 55 149 64 138 104 67
77 47 37 4 119 143 46 119
105 127 150 115 32 50 40 135
73 3 109 104 101 52 31 93
106 122 74 31 140 95 137 122
114 57 147 71 91 49 109 115
146 73 79 85 41 99 110 60
133 107 5 61 77 19 1 112
13 137 105 10 47 9 19 41
37 149 52 105

Data of 137 e-consumers were available for Nasik city (Code II) following were the 100
random numbers generated in the system. 100 randomly generated respondents were
selected for Nasik as a sample.

Random Numbers: for Nasik II

88 16 28 127 23 14 13 28
81 86 94 29 41 126 81 105
85 32 33 130 21 33 54 86
41 114 122 64 49 136 56 48
77 84 7 60 81 113 81 38
49 32 42 4 1 131 74 93
36 126 93 28 38 122 129 50
100 71 69 40 5 37 100 31
30 57 43 44 70 56 21 15
128 117 130 108 103 71 24 55
18 92 88 93 60 109 92 41

38
 30 66 52 43 97 53 67 99
130 99 60 50

Data of 175 e-consumers were available for Pune city (Code III) following were the 100
random numbers generated in the system. 100 randomly generated respondents were
selected for Pune as a sample.

Random Numbers: for Pune III

172 151 108 42 97 129 20 72
137 117 164 25 69 27 78 163
167 84 87 19 127 171 18 158
23 167 55 99 97 68 44 168
124 134 35 30 108 68 36 100
96 24 35 12 123 130 31 175
130 15 160 10 17 17 51 126
15 171 56 4 24 88 76 65
87 172 89 101 139 37 48 124
47 11 164 140 149 39 15 54
113 9 63 2 146 133 138 31
136 122 90 127 128 124 65 55
141 73 44 74

Data of 148 e-consumers were available for Aurangabad city (Code IV) following were the
100 random numbers generated in the system. 100 randomly generated respondents were
selected for Aurangabad as a sample.

Random Numbers: for Aurangabad IV

108 74 76 93 100 81 87 126
75 27 121 3 70 1 103 70
103 86 64 88 84 42 44 61
142 10 45 66 78 142 17 13
136 92 31 19 70 103 83 42
6 146 27 126 121 12 91 13

39
 106 85 63 71 88 50 135 23
17 64 42 66 46 36 26 109
7 138 5 131 31 80 36 106
9 95 102 85 122 85 85 22
26 44 3 55 33 20 111 37
53 25 148 59 132 111 52 111
98 53 3 136

Data of 80 e-consumers were available for Amaravati city (Code V) following were the 100
random numbers generated in the system. 100 randomly generated respondents were
selected for Amaravati as a sample.

Random Numbers: for Amaravati V

52 23 8 76 49 75 78 63
40 42 43 3 28 53 3 23
62 70 80 70 25 28 29 21
71 6 37 68 47 65 32 36
52 9 20 40 38 80 3 57
70 24 74 73 56 15 34 61
35 49

Data of 63 e-consumers were available for Nagpur city (Code VI) following were the 100
random numbers generated in the system. 50 randomly generated respondents were selected
for Nagpur as a sample.
Random Numbers: for Nagpur VI
19 11 50 2 20 2 37 27
15 6 16 4 53 2 39 2
33 58 40 25 56 19 1 22
9 55 44 22 25 22 14 58
16 42 58 20 37 19 46 62
8 59 33 17 21 39 34 44
26 53

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The sixth step in simple random sampling is selecting the sample. Data of the total 753
respondents was available out of which 500 respondents were selected city wise for
interviews using questionnaires.

2.4 Scale of Development

Measurement means assigning numbers or other symbols to characteristics of objects
according to certain pre-specified rules. In marketing research numbers are usually assigned
for statistical analysis of resulting data and to facilitate the communication of measurement
rules and results. In research, we quite face measurement problems, especially when the
concepts to be measured are complex and abstract (attitude & opinions) and we do not
possess standardized measurement tools. To measure abstract concepts more accurately
scaling is used. Scaling may be considered as an extension of measurement; it involves
creating a continuum upon which measured objects are located. Scaling describes the
procedures for assigning numbers to various degrees of opinion, attitude and other concepts.
There are four primary scales of measurement nominal, ordinal, interval and ratio. From
four primary scales of measurement two scales were used in this research they are nominal
scale and ordinal scale. There are five different scales were used in this study, following are
the steps followed for developing multiple item scales.

A nominal scale is a figurative labelling scheme in which the numbers serve only as labels
or tags for identifying and classifying objects. A nominal scale is used for labeling variables,
without any quantitative value. A nominal scale was used in the questionnaire of this study
for labelling demographic factors like gender, age, education, occupations and income per
month. A nominal scale was also used for labelling numbering for recording consumer top
of the mind recall, current online shopping store and most like about online shopping. A
nominal scale was used for consumer current usage like product discovery, safety, frequency
of online shopping, shopping along with and for outliers like most frequently purchased
categories, most expensive products purchased, spending per transaction, payment method
used.

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 Determine clearly what you are going to measure

Generate as many items as possible

As experts in the field to evaluate initial pool of items

Determine type of Attitudinal scales to be used

Include some items that will help in validation of the scale

Administer the items to an initial sample

Evaluate and refine the items

Finally optimize scale length

Figure 2.4.1: Steps: Developing Multiple Item Scales

An ordinal scale is a ranking scale in which numbers are assigned to objects to indicate the
relative extent to which the objects possess some characteristics. An ordinal scale allows
you to determine whether an object has more or less characteristic than some other object,
but not how much more or less. Thus an ordinal scale indicates the relative position, not the
magnitude of differences between the objects. The object ranked first has more
characteristics as compared to the object ranked second and so on. With ordinal scales, it is
the order of the values is what’s important and significant, but the differences between each
one is not really known. Ordinal scales are typically measures of non-numeric concepts like
satisfaction, happiness, discomfort, etc. An ordinal scale was used in this study to measure
overall satisfaction level of e-consumers from their current e-retailers.

Rank order scaling is commonly used to measure preferences for brands as well as attributes.
In rank order scaling, respondents are presented with several objects simultaneously and
asked to order or rank them according them according to some criteria. These rankings are
typically obtained by asking the respondents to assign a rank of 1 to most preferred brand,
2 to second most preferred and so on. The rank order scale was used in this research to rank
eight online stores (e-retailers) of electronic products to overall preference.

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 Table 2.4.1: Type of Scales used for the Research Study

Type of Scale Description Research Technique

Variables

Nominal Scale Figurative labelling Demographic Cross tabs

scheme

Ordinal Scale Numbers are assigned Satisfactions level Pie charts

to objects

Rank Order Scaling Measure preferences e-retailer Friedman’s test

for brands as well as preference
attributes

Likert Scale To indicate a degree of Psychographic Factor analysis

agreement or
disagreement

Multidimensional For portraying Perceptual MMDS for perceptual

Scaling (MDS) perceptual or affective Mapping mapping
dimensions

A measurement scale having numbers and/or brief descriptions associated with each
category. The categories are typically organized in logical order, and the respondents select
one of the categories that best describes the stimulus objects. Itemized rating scales are
widely used in marketing research and form the basic components of more complex scales,
such as multi item rating scales. Commonly used itemized scaling techniques are Likert
Scale, Semantic Differential Scale and Stapel Scale.

The Likert scale named after its developer, Rensis Likert, is a widely used rating scale that
requires the respondents to indicate a degree of agreement or disagreement with each of a
series of statements about the stimulus objects. The Likert-type scale has several
advantages. It is relatively easy to construct Likert-type scale and it’s easy for respondents
to understand. Likert scale is considered more reliable because under it respondents answer

43
each statement included in the instrument and it also provides more information and data.
Likert scale is commonly used by in the research that vary the number of scale points. Likert
scale was used in this research to capture psychographics of subjective parameters, pricing
parameters, product quality, trust and online purchase decisions.

Multidimensional scaling (MDS) is relatively more complicated scaling technique, but with
this sort of scaling one can scale objects, individuals or both with a minimum of information.
Multidimensional scaling can be characterized as a set of procedures for portraying
perceptual or affective dimensions of substantive interest. Multidimensional scaling is used
when all the variables in a study are to be analyzed simultaneously and all such variables
happen to be independent. There are two approaches to multidimensional scaling; metric
approach and non-metric approach. The metric approach to multidimensional scaling treats
the input data as interval scale data and solves applying statistical methods for additive
constant which minimizes the dimensionality of the solution space. The nonmetric approach
first gathers the non-metric similarities by asking respondents to rank order all possible pairs
that can be obtained from a set of objects. Metric approach multidimensional scaling used
in this research study to map perceptional of consumers towards e-retailers using perceptual
mapping technique using parameters like Trust, Discounts, Schemes & Offers, Service and
Quality.

2.5 Questionnaire Design

A questionnaire is a formalized framework which consists of numerous questions and scales
which have the purpose of generating primary raw data (Hair et al., 2006, p. 429). The
questionnaire is a vital part of the survey, and the quality of the research depends on a well-
designed questionnaire (Chisnall, 2005). The general form of questionnaires can be divided
into two different types. A highly structured questionnaire consists of formal questions
where the aim is to get answers of limited response. Standardized questions are administered
in the same way to all respondents. The other type of questionnaire is an unstructured
questionnaire where formal questions are replaced by researchers depending on the nature
of the research topic. “The researcher encourages conversation and respondents are able to
answer in their own words in open-ended questions” (Chisnall, 2005, p. 134).

44
For questionnaire appropriateness five simple steps (Figure 2.5.1) were used. They were
Survey plan, Questionnaire plan, Select the questions, write the questionnaire and Review
the questionnaire. Survey plan was divided into Information required and target
respondents. The information required to decide 'what are the things needs to know from
the respondent in order to meet the survey's objectives. One may already have an idea about
the kind of information to be collected, additionally information can be obtained from
secondary data. In respect of secondary data, the researcher should be aware of what work
has been done on the same or similar problems in the past, what factors have not yet been
examined, and how the present survey questionnaire can build on what has already been
discovered. Further, a small number of preliminary informal interviews with target
respondents will give a glimpse of reality that may help clarify ideas about what information
is required. The researcher must define the population from which the sample data to be
collected and the researcher have to draw up a sampling frame.

In the second step questionnaire plan was made to choose the method of reaching out to
respondents and deciding contents. The method of reaching the intended respondents should
constitute part of the questionnaire design process. The method of contact will influence not
only the questions, the researcher able to ask, but the phrasing of those questions. Questions
should not be included in the data unless it gives rise to be directly of use in testing one or
more of the hypotheses established during the research design.

The third step in the questionnaire design process was to develop & decide the question
wordings. To include the questions without evaluating their contribution towards the
achievement of the research objectives, as they are specified in the research proposal, is
surprisingly strong. Survey questions can be classified into three forms, i.e. closed, open-
ended and open response-option questions.

The fourth step in the questionnaire design process was to write the questionnaire, check
and pre-test the questionnaire. Potentially sensitive questions should be left to the end, to
avoid respondents cutting off the interview before important information to be collected. In
developing the questionnaire the researcher should pay particular attention to the
presentation and layout of the interview form itself.

45
 •Decide the information required
Survey Plan & define the target respondents

Questionnaire •Choose the method of reaching your

Plan respondents & decide question contents

Select •Develope the Question wordings

Questions & decide on question wordings

Write •Check the length of Questionnaire & Pre-

Questionnaire test the Questionnaire

Review •Develop the final Survey

form & Pilot testing

Figure 2.5.1: Questionnaire Design Process

The interviewer's task needs to be made as straight-forward as possible. The physical

appearance of a questionnaire can have a significant effect upon both the quantity and
quality of marketing data obtained. Last step was to review, which includes developing the
final survey form and pilot testing the questionnaire. A small number of respondents were
selected for the pre-test. The respondents selected for the pilot survey were broadly
representative of the type of respondent to be interviewed in the main survey. The
questionnaire had been subjected to a thorough pilot test, the final form of the questions and
questionnaire had evolved into its final form. All that remains to be done was the mechanical
process of laying out and setting up the questionnaire in its final form. This involved
grouping and sequencing question into an appropriate order, numbering questions, and
inserting interviewer instructions.

46
 Table 2.5.1: Section-wise Representation of Questionnaire

Section Section Title Questionnaire Details

I Demographics Gender, Age, Education, Occupation &

Income per month
II General Questions TOMR, Satisfaction level & Ranking

III Current Usage Product discovery, Safety & Frequency

IV Outliers Shopping frequency, Spending, Payment

methods
V MMDS & Opportunity Experience, Importance & Satisfaction
Matrix
VI Major Influences Media, Image, Promotion & others

VII Psychographics Subjective, Pricing, Quality, Trust and

Purchase decisions

There were seven main areas assessed through the questionnaire. They were Demographics,
General Questions, current usage, Outliers, MMDS and Opportunity Matrix, Major
Influences and Psychographics. Therefore the questionnaire sub section headings were
divided into seven logical parts. The questions related to all these seven sections are
mentioned in the Appendix.

A description of each part of the survey questionnaire as follows:

I} Demographics:
This section consists of questions regarding the personal details of respondents such as
gender, age, education, occupation and income per month. Demographic analysis covers
whole societies or groups defined by criteria such as education, nationality, religion and
ethnicity. Demographic information provides data regarding research participants and is
necessary for the determination of whether the individuals in a particular study are a
representative sample of the target population for generalization purposes. There were three
assessments made based on based on demographic considerations; they are who to survey,
analyze the responses and collect meaningful data. Deciding who to survey was based on

47
the research topic online shopping of electronic products itself. Once the survey data was
collected, the data was divided into various data groups based on demographic information
gathered from the survey. Deciding which demographics were the most critical to your
study. Choosing the proper demographic questions truly gives actionable and meaningful
results to assist in making better business decisions.

II} General Questions:

This section consists of general research questions such as top of the mind recall, shopping
e-retailer, most like about online shopping, satisfaction level and e-retailer ranking. Top of
the mind recall is an e-retailer coming first in customers' minds when thinking of an online
shopping. Companies make attempts to build brand awareness through media exposure on
channels such as internet, radio, newspapers, television, magazines, and social media. Most
of the researchers found that the "top of mind" metric very useful. Top of mind recall is a
way to measure how well brands rank in the minds of e-consumers. TOMR defined as "the
percent of respondents who, without prompting, name a specific e-retailer first when asked
to list all the e-retailers they recall seeing in an electronics product category. Online
shopping by the consumer at particular e-retailer had many reasons like convenience,
cheaper price, time saving and product availability. Consumer satisfaction focuses on
consumer perceptions with their online shopping experience; it provides a snapshot in time
of customer attitudes. With e-retailer ranking consumer had to write e-retailers in an order
so that the brand ranked highest was closely associated with the belief statement of the
question and the e-retailer ranked lowest was least closely associated.

III} Current usage:

This section covers questions related to consumers’ current usage, such as discovery of the
product, Safety, shopping frequency and shopping along with. Understanding consumer
market behavior calls for more than simply tracking what is happening. Consumer current
usage measures importance and validation with full profile choice sets. An online consumer
could make a discovery of products at a specific site by product categories, google search,
social media or price aggregator sites. Consumers experience the same safety protections
and outcomes when shopping online as they do when shopping with traditional, ‘bricks and
mortar’ retailers, but because of credit card frauds and defective product deliveries
consumer safety comes up. Shopping frequency covers the time duration for online
shopping.

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IV} Outliers:
This section of the questionnaire focuses on most frequent purchases, most expensive
product purchases, spending on single transactions and payment methods used. Most
frequent purchases cover the most common types of products bought online includes
categories like Electronics, Clothing & Fashion, Books & Media, Home décor / Furniture,
Deals from local service providers and other impulse purchases. When it comes to expensive
or high end products in electronic product purchases consumers makes a lot of research and
comparison compared other category or impulse products. Consumers most likely to
purchase expensive electronic products when offered free shipping and when offered free
returns and exchange. Spending on signal transaction scaled from thousands to lakhs. This
study covers five currently used payment methods like Credit card, Debit card, net banking,
cash on delivery and promotional gift cards.

V} MMDS & Opportunity Matrix:

This section consists of modified multi-dimensional scaling technique and opportunity
matrix. Consumers were asked to rate eight selected electronics retailers on multi-
dimensional scale based on factors like trusts, discounts, schemes and offers, service and
quality. Questions on MMDS were used to map e-consumer perception about eight e-
retailers on selected six factors. Opportunity matrix on the other hand finds out factors which
were considered most important by e-consumers and mostly satisfied with them.

VI} Major Influences:

This section captures most important part in e-consumer behavior which is major influences
on consumer purchase decisions. The e-consumer behavior broadly was influenced by
several factors such as internal or psychological factors, social factors, cultural factors,
economic factors and personal factors. Major influences considered for this study by taking
objectives in the consideration were areas like media, e-retailer image, promotional offers
and other important influences.

VII} Psychographics:
The last and very important section of the questionnaire was to find out psychographic
factors which were subjective parameters, pricing, product quality, trust and online purchase
decisions. Psychographics generally study personality, values, opinions, attitudes, interests,
and lifestyles. Psychographic profiles used in market segmentation as well as in advertising.
Subjective parameters find general consumer habits which can be utilized as an opportunity

49
for marketing or promotion. Pricing parameter finds consumer psyche about price and
quality. Trust factor evaluates credibility of e-retailers and online purchase decision factor
finds common behavioral patterns.

2.6 Data Collection

As mentioned in the first chapter, this study utilized two major approaches to information
gathering they were primary data and secondary data. This section illustrates the data
collection mechanism for primary data. According to Brink (2001) survey studies are
concerned with gathering information from a sample of the population. The emphasis in the
collection of data in survey studies is on structured indirect observation, questionnaires and
interviews. There are three common methods of data collection, namely: observation,
interviews and questionnaires.

Bless and Higson-Smith (2000) define a questionnaire as an instrument of data collection

consisting of a standardized series of questions relating to the research topic to be answered
in writing by participants. According to Delport (2005), the basic objective of a
questionnaire is to obtain facts and opinions about a phenomenon from people who are
informed on the particular issue. The questionnaire method was selected for this study
because it is relatively unobtrusive and inexpensive method for data collection. Since
population of this study was geographically scattered (metro cities of Maharashtra state) it
was not possible, in terms of time and cost, to have all face to face interviews. The main
advantages of using questionnaire for this study were large amounts of information was
collected from a large number of people in a short period of time and in a relatively cost
effective way and the results of the questionnaires were quickly and easily quantified using
statistical package (SPSS).

John V. Creswell (2007) defines a data collection as a series of interrelated activities aimed
that gathering good information to answer emerging research questions. As shown in figure
2.6.1, a researcher emerges in a series of activities in the process of collecting data, they are
locating site/individual, getting accesses, purposeful sampling, collecting data, recording
information, resolving field issues and storing data. Locating a site or an individual to study,
an investigator may begin at another entry point in the circle. A researcher may consider the

50
multiple phases in collecting data, phases that extend beyond the typical reference point of
conducting interviews or making observations.

An important step in the process is to find people or places to study and to gain access to
establish rapport so that respondents will provide good data. A closely related step in the
process involves determining the strategy for the purposeful sampling of an individual. The
researcher needs to determine the type of purposeful sampling of the array of possibilities
and present the rationale for selected approach. Once the investigator selects sites or people,
decisions need to be made about most appropriate data collection approaches. To collect
this information researcher develops written forms for recording the information. Also
noting and being aware of potentially difficult field issues that may compromise the data,
lead to premature exist from the field. Finally an investigator must decide to store data easily
and protect it from damage or loss.

Storing Locating
Site/
Data Individual

Resolving Field Getting

Issues Accessess

Recording Purposefully
Information Sampling

Collecting
Data

Figure 2.6.1: Data Collection Activities

Step I: Locating site/Individual:

This activity means to find an individual to study easily accessible, willing to provide

51
information, and distinctive for his accomplishments and ordinariness or who sheds light on
a specific phenomenon or issue being explored. The participants must be individuals who
have experienced the phenomenon being explored and can articulate their conscious
experiences. For this research e-consumer of electronic product from Maharashtra state were
chosen as individuals. The marketing research department and branding teams of online
shopping were contacted initially to obtain permission site visit at different locations.
Almost eight e-retailers of the study were ready to provide details of individuals after several
rigorous efforts. From eight e-retailers metro city wise data of 753 e-consumers were
obtained and 500 e-consumers were selected as a sample for the study

Step II: Getting Accesses:

Getting access means try to connect some potential participants to support the study. Getting
access to the individuals involves several steps. Permissions was sought from respective
departments such human resource, marketing and research. Gaining access to e-retailer was
very difficult. The study subject disclosure helped to build rapport, their selection and
granted anonymity. Rigorous efforts were made to contact e-retailer offices at different
locations. Some of the e-retailers initially have not granted the permission later through
related field references access was granted. After obtaining consumer data from e-retailers,
e-consumers were contacted to get permission and to fix the appointments with them. The
access issue was limited to finding the individuals who have shopped online and gaining
their permission to be studied. To get access to each respondent at a different location was
really a tedious job, planned efforts were made to build rapport with the individuals.

The actual consent form that participants complete the study addresses following:

 Their right to withdraw from the study as time.

 The central purpose of the study and procedures to be used in the data collection.
 Comments about protecting the confidentiality of the respondents.
 A statement about knowing risk associated with the participation in the study.
 The expected benefits to accrue to the participants of the study.
 A place for them to sign and date the form.

Step III: Purposefully Sampling:

The purposeful selection of e-consumers represent a key decision point in the study. Clear

52
criteria were kept in the mind to provide rationales of decisions. Miles and Huberman (1994)
examine the typology of strategies for purposeful sampling. In this study respondents were
convenient to study because of their availability. A narrower range of sampling strategies
was used. A sampling worked well because all individual studied represent people who have
experienced online shopping. All individuals meet this criteria. Random sampling is utilized
in the study adds credibility to sample because the potential purposeful sample was too
large.

Fitterman (1989) recommends proceeding with the big net approach where the researcher
mingles with everyone. Miles and Huberman (1994) establish the criteria for studying select
individuals. The study of Hammersley and Atkinson (1993) was based on gaining some
perspective on time in the social life of the group, people representative of a culture-sharing
group in terms of demographics, and the contexts that leads to different forms of the
behavior.

Step IV: Collecting Data:

There are four basic types of information to collect data, they are observations, interviews,
documents and audio-visual materials. In this study three data collection approaches were
used observation, interviews and documents. In recent years, new forms of data have
emerged, such as journaling, observing and photo graphs. The process of collecting
information involves primary in depth interviews with a small sample of respondents. The
important point was to describe the meaning of a small number of individuals who have
made online shopping of electronic products. For this study the process of collecting
information involves primarily personal interviews with almost all respondents using a
questionnaire. Personal interviews play a central role in the data collection. For one to one
interviewing selected individuals who were not hesitant to speak and share the ideas. Other
data forms for secondary data collection were used such as books, e-books, Journals,
Research papers, magazines and Research Thesis.

Step V: Recoding Information:

Lofland and Lofland (1995) whether the interviewer is using an observation method or
interview method, the essential process is recording information. For both observing and
personal interview data collection forms (questionnaires) were used for all respondents. A
questionnaire contains several features they are:

53
  Use of header to record essential information as a reminder to go over the purpose
of the study with respondents.
 Space between the questions in questionnaire. Recognizing that individuals may not
directly responds to the questions being asked.
 Provides appropriate verbal transitions from one question to the next.
 Write out closing comment that thank the individual for interview and request follow
up information as needed.

Step VI: Resolving Field issues:

Researcher engaged in studies within all five traditions face issues in the field when
gathering data. Some common issues faced in this study were locating respondents in
different locations where interviews were conducted. The issues related to interviewing
surface to gather extensive information from respondents.

Step VII: Storing Data:

The approach of storing data reflect the type of information was collected. In this study
physical data from the questionnaires was extracted into e-data stored SPSS. E-data of SPSS
were also stored in different places like laptop, hard disc, email and google drive to avoid
any sort of data loss. Primary data was organized, sorted and made data subsets. Some
principles about data storage and handling were used for this research includes the
following:

 Always develop backup copies of computer files.

 Develop a master list of types of information gathered.
 Protect the anonymity of participants by masking their names in the data.
 Convert data processed files in SPSS over to the output files for easy findings.
 Develop a data collection matrix as a visual means of locating and identifying
information for a study.

To summarize data collection activities attended locating a respondent in the study, gaining
access to respondents, sampling purposefully using different sampling techniques and
strategies, collecting information through primary and secondary data collection techniques,
establishing approaches for recording information, resolving field issues and developing
system for storing and handling the databases.

54
2.7 Statistical Analysis of Data
Bogdan and Biklen (2003) define data analysis as working with the data, organizing them,
breaking them into manageable units, coding them, synthesizing them, and searching for
patterns. The aim of data analysis of qualitative data is to discover patterns, concepts, themes
and meanings. In the process, the researcher concentrates on the whole data first, then
attempts to take it apart and re-constructs it again more meaningfully.

The data from each of the respondents’ questionnaire were captured in SPSS into one single
document. The answers for each question were coded into numbers to enable statistical
analyses to be performed on the data. According to Venter (2002), data analysis in the
quantitative paradigm entails that the analyst breaks down data into constituent parts to
obtain answers to research questions and to test research hypothesis. The analysis of
research data, however, does not in itself provide answers to research questions.
Interpretation of the data is necessary. Bless and Higson Smith (1995) suggest that a
statistical analysis is performed in order to infer some properties of the population from the
sample results. The analysis of data was divided into two major categories, namely
descriptive statistics (hypothesis testing) and exploratory data analysis.

Data as an integral part of all this study. It was the invisible backbone that supports all the
operations and activities of this research. Quality data help to formulate effective business
strategies and fruitful business decisions. Data processing refers to the process of converting
data from one format to another. It transforms plain data into valuable information and
information into data. Data processing takes the raw data and process it accordingly to
produce sensible information. The various applications of data processing can convert raw
data into useful information that can be utilized further for business processes. Data
processing ensures that the data is presented in a clean and systematic manner and is easy
to understand and be used for further purposes. The four steps of data processing used in
this research study are editing, coding, classification and tabulation.

Editing of data was used to examine the collected raw data from the questionnaire, detect
errors and to correct the data. Editing involved a careful scrutiny of the completed
questionnaires. Editing was done to assure that the data was accurate, consistent with other
facts gathered, uniformly entered, as completed as possible and had been well arranged to
facilitate coding and tabulation.

55
After editing of data, coding was done by assigning numerals or other symbols to answer so
that responses can put into a limited number of categories or classes. Coding was necessary
for efficient analysis and through it the several replies may be reduced to a small number of
classes which contain the critical information required for analysis. Coding decision was
taken at the designing stage of the questionnaire. This makes it possible to pre-code the
questionnaire choices and which in turn was helpful for computer tabulation as one can
straight forward key punch from the original questionnaires.

Classification was third step used in data processing is the process of arranging data in
groups or classes on the basis of common characteristics. This research result in a large
volume of raw data which was reduced into homogeneous groups. Data having a common
characteristic were placed in one class and in this way the entire data get divided into a
number of groups. Classification was done on the basis of attributes and according to class
intervals.

Tabulation was used to arrange a mass assembled data in logical order. Raw data were
summarized and displayed in the same form of statistical tables for further analysis.
Tabulation and cross tabulations were done by using SPSS.
The Statistical tools used for the data analysis process are mentioned below.

1. Statistical Package for Social Sciences (SPSS, version 16,21)

2. Microsoft Office Excel 2010
3. Perceptual Mapping Software (PERMAP 11.8a)

2.7.1 Testing of Hypothesis

According to Kerlinger (1986), ‘A hypothesis is a conjectural statement of the relationship

between two or more variables’. The hypothesis is usually considered as the principal
instrument in research. Its main function is to suggest new experiments and observations. In
fact, many experiments are carried out with the deliberate object of testing hypotheses.
Decision-makers often face situations wherein they are interested in testing hypotheses on
the basis of available information and then take decisions on the basis of such testing.
Hypotheses primarily arise from a set of ‘hunches’ that are tested through a study and one

56
can conduct a perfectly valid study without having these hunches or speculations. The
importance of hypotheses lies in their ability to bring direction, specificity and focus to a
research study. Grinnell (1988), a hypothesis is written in such a way that it can be proven
or disproven by valid and reliable data, it is in order to obtain these data that we perform our
study.

To test a hypothesis you need to go through a process that comprises three phases: 1)
Constructing a hypothesis 2) Gathering appropriate evidence 3) Analyzing evidence to draw
conclusions as to its validity. Figure 2.7.1 shows this process diagrammatically. It is only
after analyzing the evidence that we can conclude whether your hypothesis was true or false.
When concluding about a hypothesis, conventionally, you specifically make a statement
about the correctness or otherwise of a hypothesis in the form of ‘the hypothesis is true’ or
‘the hypothesis is false’. It is therefore imperative that you formulate your hypotheses
clearly, precisely and in a form that is testable. In arriving at a conclusion about the validity
of your hypothesis, the way you collect your evidence is of central importance and it is
therefore essential that your study design, sample, data collection methods, data analysis
and conclusions, and communication of the conclusions be valid, appropriate and free from
any bias.

Phase III
Phase I Phase II Analyse data
to conclusions
Formulate Collect the
about
Assumptions required data
hypothsis -
true/false

Figure 2.7.1. The process of testing a hypothesis

The five main hypotheses of this research study were presented in the first chapter. It was
assumed Demographic factors such as age, occupation, education and income of e-
consumers significantly impact the e-consumer behavior. It was assumed that Discount has
a significant relationship with purchases and Trust positively affects willing to buy. It was

57
assumed that cash on delivery is most preferred payment option and marketing influences
and purchase decisions have significant relationships. The table 2.7.1 represents the actual
working hypothesis of this study.

Table 2.7.1: Hypothesis to be tested

Hypothesis Label Relationships to be Tested

Hypothesis 1 H1 Demographic factors of e-consumers significantly impact the e-

consumer behavior

Hypothesis 2 H2 There is a significant relationship between the Discounts (Lower

Price) and the e-consumers purchase decisions

Hypothesis 3 H3 Trust positively affects the e-consumer behavior towards

willingness to buy from e-retailers.

Hypothesis 4 H4 Cash on Delivery is a most preferred payment option by e-

consumers

Hypothesis 5 H5 There is a significant relationship between the marketing

influences & the e-consumer purchase decisions

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Figure 2.7.2 represents the diagrammatic representation of the hypothesis testing of the
research study.

Demographic
Factors

H1
Marketing
H5 Discounts
Influences
e-Consumer
Behavior & H2
Purchase
Decisions

H4
H3

Cash on
Delivery Trust
(COD)

Figure 2.7.2. The hypothetical relationship of e-consumer behavior/purchase decisions

and demographic factors, discounts, trust, cash on delivery & marketing influences

In order to analyze the data collected for the research and to test the hypothesis conducted
the software program Statistical Package for Social Sciences (SPSS) was used. First all the
questions were defining the names, labels, and data types for the various fields of data, as
the variables and data entry of those variables. After data entry into SPSS, the descriptive
part of data analysis was carried out. Furthermore, the correlations between the dependent,
independent and controllable variables were investigated to give an indication and direction
between the variables.

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2.7.2 Statistical techniques for data analysis
Post Data Reduction, the data were further used for analyzing the impact of various factors
on each other as well the correlation amongst them using SPSS 16. The factors as well as
their correlation were studied with the help of the following techniques:
 Friedman’s Test: The Friedman test a non-parametric statistical test employ
calculations based on ranks. The procedure involves ranking each row together, then
considering the values of ranks of columns. Respondents were asked to rank the 8
electronics e-retailers provided them according to their preference. For the
statistically significant results Friedman’s Test is used.
 Cross-tabs with chi-square: The factors were grouped into 5 pairs based on the
responses from the questionnaire. These were studied using Chi-Square as that
would help us to know the interdependency between them. Chi-square in a general
studies causal relationship and thus the hypotheses were created for each of them
was done at 95% significance level. By conducting the test and interpreting the
results through the p-value, we can either accept or not accept the hypothesis.
 Factor analysis: Factor Analysis technique was used to reduce data complexity by
reducing the number of variables being studied. It had identified underlying factors
from an array of seemingly important variables. This procedure helped gaining
insight into psychographic variables. For this study an initially number of variables
were selected for subjective parameters, pricing parameters, product quality
parameters, trust parameters and purchase decisions. After factor analysis were
narrowed down to five variables.
 Modified-Multi Dimensional Scaling (MMDS): Comparison of various e-retailers
were done on the basis of different parameters with the help of a SPSS tool known
as Modified-Multi Dimensional Scaling (MMDS). MMDS is a tool which helps to
compare two different parameter with each other. It is a tool used in SPSS, which
provides us with an idea about the statistics of those parameters and strategies can
be according designed. The most common and useful application of Modified-Multi
Dimensional Scaling (MMDS) is in the product or brand positioning. Positioning is
essentially concerned with mapping consumer’s mind and placing all the competing
brands of a product category in appropriate positions. MMDS provides an unbiased
view of consumer perceptions regarding similarities between brands and objects.

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 Positioning of e-retailers were done on the basis of five important parameters trust,
discounts, schemes & offers, service and quality.
 Perceptual mapping: Perceptual mapping is a graphical technique used by
marketers that attempts to visually display the perceptions of customers or potential
customers. Typically the position of a product, product line, brand, or company is
displayed relative to their competition. In helping you develop a market positioning
strategy for your product or service, perceptual maps or positioning maps as they are
sometimes referred to, are often used to help the organization identify a positioning
strategy. Perceptual mapping was used in this study to map consumer perception
about e-retailers of electronic products on the basis of the five parameters. The
perceptual mapping tool PERMAP 11.8a was used to map e-consumer preferences.
 Opportunity matrix: Respondents were asked how important different parameters
provided to them by e-retailers were and what extent they were satisfied with those
parameters with their own e-retailer or the e-retailer they shop. These could be with
the help of mathematical tool known as Opportunity Matrix. Opportunity Matrix
finds out the importance and Satisfaction level of a few parameters on the basis of a
rating scale and finds out the opportunity factor.

2.8 Chapter Summary

In this chapter, the research methodology was discussed, describing research by
commencing with research design. Other sections focused on the target population,
sampling strategy, measuring instruments, data processing and hypothesis formation.
Further discussion included the nature and composition of each questionnaire as well as its
administration. Further elaboration was provided in the data collection procedures as well
as the statistical processing and interpretation of raw data and converted data was provided
with focus on statistical data analysis.

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