Factors Influencing Women Consumers' Buying Behavior towards Online Shopping in India

By Raman, Prashant | Journal of Contemporary Management Research, September 2014 | Go to article overview

Factors Influencing Women Consumers' Buying Behavior towards Online Shopping in India


Raman, Prashant, Journal of Contemporary Management Research


1. INTRODUCTION

According to Internet World Stats in December 2013, India has the second largest number of internet users in Asia after China despite having a low internet penetration rate of just 15.8 percent. Based on the Internet Live Stats, India's count of internet users has been increasing at a rate of 4323% from 2000 to 2014. This large internet user base will have a direct effect on the Indian online shopping business. In fact Google India mentions that around 50 million Indians purchases products online and this number is rising every year. The swift increase of the usage of internet over the past two decades, as a place for buyer-seller dealings is significant of the extent of recognition of online transactions. The growth of e-commerce industry has led to a sizeable increase in the online transactions. According to the Associated Chambers of Commerce and Industry of India (Assocham), the size of the e-commerce industry is likely to grow at an annual rate of 35% to Rs.7,000 crore by 2015. The online industry has seen a jump in the number of transactions with the change in the consumer buying behaviour from a physical store to an online store. This unprecedented increase in the online transactions is due to advances in technology, changing behaviour patterns of the consumers and sometimes situational influences.

Shopping online is generally defined as the idea of buying and selling of products over the internet. The sellers' viewpoint is to convince and catch the attention of the prospective consumers' to purchase products, and make sure that he / she is satisfied. The buyers' outlook towards online shopping is the extent to which he / she can access, browse, purchase, transact and repeat the same behaviour. In this digital age consumers are driven by the technology. They are searching for the product on the internet and eventually buying it. Sometimes there are lot of hesitations and doubts while shopping online. Some of the most prominent ones being risk involved in sharing financial and personal information, inability to touch and try the goods before purchasing and concerns related to not getting the right product.

Online retailers need to understand the fundamental issues related to online shopping and work on it. This will help the female consumers in their online buying process. The objective of this research is to explore the vital aspects that influence women's online buying decision and to ascertain a relationship through conceptualizing an integrated model. The empirical study has been carried out with the intention of capturing the factors that affect the female consumers' online buying decisions.

Our study, therefore, intends to tackle the below research questions:

RQ1. What factors affect the female consumers' behavior towards shopping online?

RQ2. What distinctive constituents under each factor are unique to online shopping?

RQ3. What can be suggested to improve the overall experience of online shopping?

2. LITERATURE REVIEW

2.1 Overview of India's online retail market

Online retail market in India has been emerging at an extraordinary rate. With the growing internet diffusion and broadband availability, and increasing usage of Smart phones and tablets, Indian population have started buying products online. According to a report by Gartner more than 30% of the traffic on online shopping portals is coming from smart phones and tablets. E-commerce industry has picked up pace and has been striding leaps and bounds over the past few years. This scenario is estimated to carry on as the market is expected to reach $14.5 billion by 2018. Forrester Research projections for Asia-Pacific also portray the rapid growth of e-commerce market in India.

The prediction depicts e-commerce's growth in India, where sales are expected to grow by 57% yearly till 2016. It will reach $8.8 billion by 2016. This demand is backed by increase in consumers' online buying behaviour and growing penetration of technology. …

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