Impact of E-Commerce on the Changes in Consumer’s Buying Behaviour in Malappuram District
Dr.V.Dheenadhayalan,
Associate Professor, PG Department of Commerce (On Deputation from Annamalai University), Sri Subraminaswamy Govt. Arts College, Tiruttani, [email protected]
Sandeep.A
Ph. D. Research Scholar, Department of Commerce, Annamalai University, Annamalai Nagar
ABSTRACT
In this study, an attempt has been made to understand the impact of the increasing trend of online shopping and the changes in consumer’s buying behaviour. This study attempts to depict the main drivers of the retail revolution in India and how this revolution changes the buying behavior of the consumer. The development of information technology and smart phones not only give birth to e-commerce but it also creates a consumer group having nature of tech- savvy. The unimaginable facilities provided by online shopping centers such as wide variety of choices, amazing prices, door-step service have break-up the minds of consumers from nearby convenient fixed shop consuming to online shopping even for the products having nature of day- to-day usage.
Keywords :-E-Commerce, Consumer Satisfaction, Buying Behaviour INTRODUCTION
The study tries to reveal the changes in consumer buying behaviour in light of development of E-commerce. Purchasing products or services over the Internet, online shopping has attained wide popularity in recent mainly because people find it convenient and easy to shop from the comfort of their home or office and also eased from the trouble of moving from shop to shop in search of the good of choice. Online shopping (or e-tail from electronic retail or e- shopping) is a form of e-commerce which allows consumers to directly buy goods and services over the internet through a virtual shop. The study tries to identify the changes in the consumer’s buying behavior of people in Malappuram District after the revolutionary changes in E- commerce.
STATEMENT OF THE PROBLEM
The immense popularity for E-commerce and online shopping have made a revolutionary change in buying pattern of consumers. So this study try to identify the forces affecting changes in buying behaviour of consumers and also try to understand the problems faced by consumers while having online purchase and the satisfaction level of consumers in online purchasing.
SCOPE OF STUDY
This study focuses on the changes in buying behaviour of people in Malappuram District due to the development of E-commerce. It is also a thought opening for the consumers who are addicted only to the online shopping, who can’t enjoy the benefits of traditional off line shopping. The scope of the study is confined to Malappuram District.
OBJECTIVE OF THE STUDY
To identify the buying pattern of consumers through online.
To identify the forces affecting consumer behavior of online purchase.
To study the major problems faced by consumers in online purchase.
To analyze the satisfaction level of consumers.
To provide necessary suggestions
RESEARCH METHODOLOGY Research design
Exploratory researchdesign
For doing the study, that is the nature of research work to be undertaken as to Exploratory research method.
Source of data
Primary data:
It consists of original information collected through structured questionnaire from sample size of 100 respondents residing at Malappuram District.
Secondary data:
It consists of information that already exists and that are collected in past for some other purpose such as Previous research reports and Journals
Sampling :
Sample size: This research study is conducted on 100samples.
Area of study: Malappuram District
Sampling: Conveniencesampling
Tools for data collection
Primary data: primary data collected through structuredquestionnaire.
Tools for data analysis
Statistical analysis presentation with Tables and graph( pieand barchart)
Selected demographic data analysis by using frequencies andpercentage.
REVIEW OF LITERATURE
Lili Qu etal., (2014) has pointed out that five important e-Commerce factors have thesignificant positive correlation with Gross Domestic Product, especially the number of Internet users, thenumber of e-Commerce enterprises, the increasing number of online shopping users. They indicate thate-Commerce development play influence to economic growth. In order to make e- Commerce development play a greater role in economic growth, national governments,businesses and consumers need to put more emphasis on e-Commerce, increase investment in infrastructure,train e-Commerce professionals, make more users online shopping, to improve the level of e-commerce andpromote economic growth.
Dijeshetal.,(2014) reveals that Electronic commerce has several advantages over doing business in the traditional way. The advertisements andpromotions done through web can reach even geographically separated area. Cost of selling in the web is also less when compared with traditional commerce. Marketing done through web, as a medium is efficient and cost effective.
With the enhancements in computer technology, maintaining a long-lasting relationship with customers and building trust become easy. Electronic commerce also helps developing brands.
Electronic commerce has grown as a better medium in identifying and reaching potential customers.
Marina Sadyki (2017)states that Foreign retailers’ online sales of physical goods to Russia have grown considerably over thepast few years. The market reached around US$ 4.3 billion in 2016 up from US$ 3.4 billion in2015 and US$ 2.2 billion in 2014. Cross-border E-commerce from outside is increasingdramatically due to cheaper products than on the domestic market. In times of economicdifficulties, the price differences explain much of the attractiveness of international onlineretailers.
Kiran S Nair (2017) states that the integration of digital marketing with e-commerce will bring innovations in marketing functions. Job market will see a major shift in the nature of jobs and the need to technological skill set. There will be some reduction in traditional jobs because of Ecommerce and digital business, but it will open a new horizon of jobs in Information and communication technology sector. The net result will depend on the skill set of candidates irrespective of the sectors.
SilpaSasankan (2018) states that E-commerce, especially the B2C segment has changed the way business is done all over the world. These days the trend of e-commerce has gained momentum because of many favorable variables like COD, customization or personalization of the product, home delivery, etc. Online shopping has gainedpopularity among all the age groups, especially the youths and well employed citizens. The development of e-commerce in Kerala will have a significant impact on the socioeconomic status of people. Additional studies from different districts of Kerala on the internet connectivity, customer online purchase intention, online trust, prior online purchase experience, net banking facility, quality and brand orientation will help to construct new measures to promote e-commerce in Kerala. E-commerce model will help businessmen, entrepreneurs, retailers to reduce the cost, expand the market and enhance efficiency, etc. Creating awareness regarding e-commerce among the Kerala citizens, manufacturers, exporters is a pre-requisite to welcome the e-commerce business model and this will have potential to improve the lives and the livelihood/standard of living of the Kerala people. In this regard, the Government of Kerala can play a major part by highlighting the benefits of IT to its members and encouraging them to use customized software for their day-to- day operation.
Himani Aggarwal etal., (2020) states that E-commerce sector has become one of the key development areas in a country like India. It has helped in capitalizing the economy and creating a tech-savvy environment. It bestows a readymade platform for the businesses to break into the
markets domestically as well as internationally and facilitates global trade at much lower costs.
Measured in terms of social factors, e-commerce can be beneficial in skill enhancement for the population and in creation of more employment opportunities. They also pointed ou that the key challenges faced by Indian e-commerce sector is that India is still at an embryonic stage in this industry and also suggest that there is a necessity for formulating specifically designed policies for the development of the sector.
Major players in E-commerce in India
Amazon India
This is by far the most popular online shopping sites in India. Reputed for superior products, services, delivery and returns policies, Amazon India brings to this country a truly international online shopping experience. You can buy almost all products from Amazon with great discounts.
Flipkart:
This online shopping website is India’s own. It is fast becoming popular outside the country too, thanks to excellent product range and highly competitive rates. Flipkart has unbeatable reach in semi-urban and rural India, thanks to its extensive delivery network.
Snapdeal:
Featuring innumerable products from over 800 categories, Snapdeal has emerged as top destination for online shoppers in India. Great discounts are available 24x7x365 on this online store. Fast delivery schedules and flexibility of payments has helped Snapdeal grab leading position in India’s online shopping sector.
Myntra:
Myntra can truly be called the undisputed leader of online shopping site for fashion wear. Myntra is known for pioneering readymade garments and fashion wear retail segment of India. This online portal offers everything required to complete a wardrobe. Myntra’s end of season sales is huge draw among fashion aficionados.
40 38
35
30
25 25
20
16 15
10 8 8
5 5
0 Secondary Higher Graduate Post
secondary graduate
Professional degree
Others
DATA ANALYSIS AND INTERPRETATION
TABLE NO.1
EDUCATION LEVEL OF RESPONDENTS
Education level Frequency Percentage
Secondary 16 16%
Higher secondary 38 38%
Graduate 25 25%
Post graduate 8 8%
Professional degree 5 5%
Others 8 8%
Total 100 100%
Source: Primary data
CHART NO. 1
EDUCATION LEVEL OF RESPONDENTS
Education level of respondents are 16% of secondary, 38%of higher secondary, 25% graduate, 8% post graduate, 5% professional degree and 8% of other category.
TABLE NO: 2
FREQUENCY OF PURCHASE THOUGH ONLINE
Options No. Of Respondents Percentage
Daily 5 5
Weekly 36 36
Monthly 59 59
Total 100 100
Source: Primary Data
CHART NO: 2
FREQUENCY OF PURCHASE THOUGH ONLINE
Interpretation: Among the 100 respondents, majority 59% respondents purchase product through online on monthly basis. 36% are weekly basis and 5% are daily basis.
TABLE NO: 3
OPINION ABOUT CONSUMPTION OF PRODUCTTHROUGH ONLINE
Options No. Of Respondents Percentage
Excellent 42 42
5%
36%
59%
Daily Weekly Monthly
Very Good 36 36
Good 12 12
Average 10 10
Poor 0 0
Total 100 100
Source: Primary Data
CHART NO: 3
OPINION ABOUT CONSUMPTION OF PRODUCTTHROUGH ONLINE
Interpretation: Among the 100 respondents, 42% of respondent opinion about consumption of product through online was excellent, 36% of respondent opinion was verygood, 12 % of respondent opinion was good, and 10% of respondent opinion was average.
TABLE NO. 4
LEVEL OF SATISFACTION WITH ONLINE PURCHASE
Opinion Frequency Percentage
Highly satisfied 65 65%
Satisfied 25 25%
42%
36%
12%
10%
0%
Excellent Very Good Good Average Poor
Neutral 10 10%
Dissatisfied 0 0
Highly dissatisfied 0 0
Total 100 100%
Source: Primary data
CHART NO.4
LEVEL OF SATISFACTION WITH ONLINE PURCHASE
The figure shows that about 65%respondents are highly satisfied with online purchase, 25% of respondents are satisfied, and 10% of opinion isneutral.
TABLE NO. 5
PROBLEMS WITH ONLINE PURCHASE
Options Weight Rank
Quality Issues 4.33 I
Digital Payment Failures 3.19 III
Lack Of Security 3.70 II
0%
10%
20%
30%
40%
50%
60%
70%
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
Poor Delivery 2.52 IV
Any Other 2.42 V
Source: Primary data
Working Note:
Weighted Average Method = (X1W1+X2 W2+X3 W3…..+ X n W n)/N
Among the 100 respondents, majority people have the opinion that the major problem in online purchase is quality issues regarding the product and were ranked first. Secondly ranked the problem is lack of security. Then digital payment failures were ranked third, poor delivery is ranked fourth and fifth rank provided to any other.
TABLE NO. 6
FACTORS INFLUENCING ONLINE PURCHASE
Option Weight Rank
Variety Of Choices 4.35 II
Discount And Offers 4.29 III
Convenience Of Shopping 4.50 I
Time Saving 3.97 IV
Comparison With Similar Products
3.95 V
Source: Primary data
Working Note:
Weighted Average Method = (X1 W1+X2+W2+X3 W3……+X n W n)/N
Among the 100 respondents, majority people are choosing online shopping due to convenience of shopping and were ranked first. Secondly ranked reason was variety of choices , third ranked was discount and offers, finally people are prefer online purchase reason is time saving and comparison with similar products ,they ranked fourth and fifth.
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
Majority of people purchase products through online on monthly basis
Most of the people having the opinion that consumption of product through online is excellent
Majority of the respondents are satisfied with online shopping
The most important problem faced in online shopping is quality issues and lack of security and also respondents have the opinion that the product shown in the website does not match with actual product received.
The most important factor that leads to online shopping is convenience and variety of choices.
SUGGESTIONS
The online traders must take necessary steps to match the expectation of consumer with product those actually delivered
Only literate people can have the advantage of online shopping. So there must be campaigns to make consumers those who are unaware about online shopping.
The online traders must have to strengthen their distribution channel.
CONCLUSION
The development of information technology and smart phones not only give birth to e- commerce but it also creates a consumer group having nature of tech-savvy. The unimaginable facilities provided by online shopping centers such as wide variety of choices, amazing prices, door-step service have break-up the minds of consumers from nearby convenient fixed shop consuming to online shopping even for the products having nature of day-to-day usage. The consumers not only always prefer online shopping but they also try to enjoy the off-line shopping because there are a lot of small scale retail traders in the economy who face problems due to the advent of E-stores.
REFERENCES
1. Dheenadhayalan V and Selma Sebastian, Impact of Television Advertisement on the Buying Behaviour of Families, ,Tamilnadu Journal of Cooperation, Vol. 10 No.09, July 2010, PP.76 – 80
2. Dijesh P, Dr. SuvanamSasidhar Babu, Mrs. Y Vijayalakshmi, Impact Of Electronic Commerce In Marketing And Brand Developing, International Journal Of Computer Engineering & Technology (IJCET), Volume 5, Issue 12, December (2014), Pp. 123-128.
3. Dr. Kiran S Nair, Impact Of E-Commerce On Global Business And Opportunities - A Conceptual Study, International Journal Of Advanced Engineering And Management Research Vol. 2 Issue 2, 2017.
4. Dr. D.Paul Dhinakaran, “Exports and Imports Stagnation in India During Covid-19- A Review” GIS Business (ISSN: 1430-3663 Vol-15-Issue-4-April-2020).
5. Himani Aggarwal and Samridhi Jain, E-Commerce in India An Economic Boon, Yet to Be Realized, EBSCO Publishing, July 2020.
6. Marina Sadyki, National Report On E-Commerce Development In Russia, Department Of Policy, Research And Statistics Working Paper 13/2017.
7. Qu, Lili And Chen, Yan, "The Impact Of E-Commerce On China’s Economic Growth"
(2014).Whiceb 2014 Proceedings. 101.
8. SilpaSasankan, E-Commerce In Kerala: A Platform For Business Enterprises To Venture Into The Global Market And Boost Economic Growth, International Journal Of Management, Technology And Engineering, Volume 8, Issue X, October/2018.
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