Perception of Undergraduate and Postgraduate management students towards online shopping in NMU region

Perception of Undergraduate and Postgraduate management students towards online shopping in NMU region
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

    Perception of Undergraduate and Postgraduate management
         students towards online shopping in NMU region
            Ms. Richa Modiyani1,Mr. Kapil Jain2,Ms. Rimzim Menghwani3
             1
              Asst. Prof- MBA Dept, SSBT’s COET, Bambhori, NMU, Jalgaon, Maharashtra, India
              2,3
               Student- MBA Dept, SSBT’s COET, Bambhori, NMU, Jalgaon, Maharashtra, India

Abstract: Online shopping is a process of buying and selling of products and services through the Internet.
Online shopping has become the fastest-growing industry and Internet users have reported that online shopping
is one of their primary uses of Internet. In the past decade, there has been a dramatic change in the way
consumers have altered their way of shopping. Although consumers continue to purchase from a physical store,
consumers feel very convenient to shop online since it frees the customer from personally visiting the
store. Internet shopping has its own advantages and it reduces the effort of travelling to a physical store. With
the help of online shopping, the consumers can purchase clothing, shoes, books, airline and events tickets,
foods, computers hardware and so on.For the analysis of data descriptive statistics have been applied. In the
present study an attempt has been made to analyze the perception of the students towards online shopping and
comparative study of under graduate & post graduate students on online shopping.
Key words: Online Shopping, Students, Perception.

                                          I.    INTRODUCTION:
          Online shopping has revolutionized the business world by making everything anyone could want
available by the simple click of a mouse button.Online shopping behavior (also called online buying behavior
and Internet shopping/buying behavior) refers to the process of purchasing products or services via the Internet.
          Michael Aldrich is the man who invented online shopping in 1979. With the increasing internet
literacy, the prospect of online marketing is increasing in India. An online shop evokes the physical analogy of
buying products or services at a bricks-and-mortar retailer or shopping center; the process is called business-to-
consumer (B2C) online shopping. The largest of these online retailing corporations are Snap deal, Amazon.com,
and eBay.

Specific features of Online shopping:-
1. It is based on the concept of flexi time.
2. It can be accessed from anywhere.
3. One can evaluate many online shopping stores at a time.
4. Comparison can be made in real time.
5. Provision of replacement of product if it is not as per the aspiration of the customer.
6. Casual shopping

                                II.    OBJECTIVES OF THE STUDY:-
1. To study perception of students towards online shopping.
2. To study the factors& trends affecting the students to buy online.
3. To identify the difference in behavior towards online shopping between male and female students.

                               III.    RESEARCH METHODOLOGY:-
It is a descriptive research method collecting facts on online shopping perception of management
student’sincidences in NMU region. Primary data is collected through structured questionnaire, by observation
and interview. Secondary data on the other hand includes relevant books on the topic of research, journal,
magazines, newspapers, and internet. The study sample constitutes 315 respondents constituting in the research
area. The area of study is NMU region.

Limitations of the Study:-
1. Primary data is collected with special reference to NMU region.
2. The research is completely focused on management students.
IES Management College and Research Centre                                                              35 |Page
(IESMCRC-2016)
Perception of Undergraduate and Postgraduate management students towards online shopping in NMU region
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

Hypothesis of the Study:-
1. In Online Shopping, the buying behavior of undergraduate management students is different than
   postgraduate management students.
2. There is a significant relationship between gender and online shopping.

                                IV.     REVIEW OF LITERATURE:-
         Comscore report, (2013) examined that India is now the world’s third largest internet Population.
Younger males and women aged 35-44 merge as power users.73.8 million Indians surfed the web via a home or
work computer. BCG report, 2012) stated that there will be three billion internet users globally, almost half the
world’s population. The internet economy will reach $4.2 trillion in the G-20 economics. If it were a national
economy, the internet economy would rank in the world’s top 5, behind only the USA and India, and ahead of
Germany1. Jush and Ling, (2012) defined online shopping as the process a customer takes to purchase a service
or product over the internet. A consumer may at his or her leisure buy from the comfort of their own home
products from an online store2.
         KanwalGurleen, (2012) observed that India has more than 100 million internet users out of
which one half opts for online purchases and the number is rising sharply every year. The growth in the
number of online shoppers is greater than the growth in Internet users, indicating that more Internet users
are becoming comfortable to shop online. Until recently, the consumers generally visit online to reserve hotel
rooms and buy air, rail or movie tickets, books and gadgets, but now more and more offline product like clothes
-saris, kuris, T-shirts-shoes,      and      designer      lingerie,   consumer durables are being purchased
online3.Suresh et al., (2011) stated that online shopping is becoming popular in India now4.
         Master Card Worldwide Insights, (2008) revealed that 47% of internet users shop online. Indian
shopping community is around 28 million and Indian online shopping market is worth about $71 billion. Indian
online shoppers spend about 11% of their personal income in online shopping 5.




1 . Comscore, “Online Shopping Customer Experience Study,” 2012, retrieved on April 18, 2013 from
    http://www.pressroom.ups.com/pressroom/staticfiles/pdf/factsheets/comScoreCustomerExperienWhitePaper.
    pdf
2. Jusoh, Z. M. and Ling, G. H., “Factors Influencing Consumers’ Attitude towards E-commerce Purchases
through
   Online Shopping”, International Journal of Humanities and Social Science, 2(4), 2012, 223-230.
3 . Gurleen, Kanval (2012). “Consumer’s Attitude towards online shopping – The Case of Punjab”,
   InternationalJournal of Management & InformationTechnology, Volume 1, No 1
4. Suresh, A., M. and Shashikala, R., ”Identifying Factors of Consumer Perceived Risk towards Online
   Shopping in India,” In 3rd International Conference on Information and Financial Engineering, 12, 2011, 336
   -341.
5. Master Card Worldwide Insights, “Online shopping in Asia/Pacific-Patterns, trends and future growth,” 2008,
   retrieved                on                 April               29,                2013                 from
   http://www.mastercard.com/us/company/en/insights/pdfs/2008/AsiaPacificOnlineShop.pdf
IES Management College and Research Centre                                                             36 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

                          V.       ONLINE SHOPPING STATS:-
                                     Sales in billion U.S. dollars
                          20
                                                                              17.52
                        17.5
                          15                                          14.18

                        12.5                                  10.68
                          10
                                                       7.69
                         7.5                     5.3
                           5              3.59
                                  2.31
                         2.5
                           0
                                 2012 2013 2014 2015 2016 2017 2018




                           Increasing average order value INR 3600




                                                 INR 1860


                               INR 1080




                            CY 2012              CY 2013          CY 2016 P


IES Management College and Research Centre                                            37 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

                             Indian payment landscape- rise of EMIs & Wallets
                                              (Total: 100%)

                          60%                           2013            2016P
                                50%




                                       16%               15%
                                          12%         12%              12% 11%
                                                                                             5%              7%
                                                                                        1%              0%


                           COD         Credit          Debit            Net              EMI          3rd party
                                       Cards           Cards          Banking                          wallets

                                       Accel estimates, Accel portfolio comapnies & Industry sources: PayU, EMVantage




                                 Favourite Device For Online Shopping


                                                                                  Mobile
                                      Website                                     App, 50.
                                        on                                         75%
                                      Desktop,
                                      63.18%




                                                                                     Mobile
                                                                                     Website,
                        Source: CouponRani Survey, May 2015                          5.47%



                                Favourite Mobile App for Shopping in India



                                                                    Myntra
                                       Flipkart                      8%                       Snap
                                        28%                                                   Deal
                                                                                              18%

                                                                                       Amazon
                                               Paytm                                    18%
                                                28%




                        Source: CouponRani Survey, May 2015



IES Management College and Research Centre                                                                              38 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org



                                                            Price


                                      Refund                                      Brand



                                                          Factors of
                                                          Consumer
                                                          Purchasing
                                  Online                   Decision
                                 Shopping                                            Security
                                  Malls




                                               Auction                 Search
                                               Websites                Engines




                                     Demand Trends in the Indian Online Retail Market in
                                            Home &          2015
                                            Furnishing
                             Consumer        & Books
                             Durables          15%
                               10%                                  Apparel
                                                                    Footwear
                                                                      20%



                                                                      Mobile
                                                                     Phones &
                                                                    Accessories
                                                                       41%
                              Laptop/
                             Notebooks/
                               Other
                             Electronic
                               Items
                                14%

          The total turnover of the e-commerce market in India is supposed to hit $16 billion in 2016. Of this,
nearly 31% belongs to online retail and 61% belongs to the travel industry while the rest can be chalked up to
wholesale and other services. According to the data gathered by Accel India, the number of internet users in
India will grow to more than 400 million by 2016. Of these, more than 60% generally frequent e-commerce
websites. The conversion rate from visitors to buyers is expected to jump to 2.9% from 2.7% in 2013. This
means that the gross turnover due to online retail will exceed $8.5 billion in 2016.According to a study by the
Internet and Mobile Association of India, or IAMAI, mobile phones and their accessories are the highest selling
items on online retail websites like Flipkart and Snapdeal. The online retail industry, growing at the rate of more
than 33% currently, favours various product categoriesas shown above6.Online Shopping Malls, Convenience,
Price, Brand, Refund, Security, etcWith an expected 33 percent of the global market in 2015 and over 37
percent in 2018, the Asia Pacific region is becoming the leader of the e-commerce industry. This statistic gives
information on retail e-commerce sales in India between 2012 and 2014 and provides a forecast until 2018. In



6 .“Hottest Product Categories in Indian Online Retail”, available at http://browntape.com/hottest-product-
    categories-in-indian-online-retail/ accessed on 01 Jan, 2016.
IES Management College and Research Centre                                                               39 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

2013, retail e-commerce sales amounted to 3.59 billion US dollars and are projected to grow to 17.52 billion US
dollars in 20187.
          The biggest aspect that will please Indian ecommerce players is that it not just the increase in number
of shoppers, but the average order value is also seeing a steep growth. According to Accel Report, in 2012, the
average physical goods ecommerce order value was Rs, 1080, which increased to Rs. 1860 in 2013. By 2016, it
is expected to nearly double to Rs. 3,600. As the ecommerce space is maturing, Indians are now comfortable
buying high priced goods online.Another key aspect that ecommerce companies are going to encounter in next
couple of years is growth of shopping on Mobile. It will grow a whopping 27 times compared to 2012 levels and
nearly 3.5 times that of 2013.

Highlights of Indian Ecommerce Report
 35 percent of online sales in 2016 will be influenced by women, a growth of 24X compared to 2012 levels.
 Cash of Delivery will remain the most popular method for payment, however, it will come down from 60
   percent in 2013 to 50 percent in 2016. Debit card payments, EMIs and 3rd party wallet get more popular as
   compared to today.
 Adoption of eCommerce is much faster in Tier 2 cities as compared to Tier 1.
 By 2016, half of all online shoppers will be from Gen Y category (19-24 years)
 Online sales still comprise of a very small percentage of total goods sold. For eg: Only 4 million mobiles
   were sold online compared to 243 million in offline category. Except Books (7%), all other categories have
   much lower percentages (less than 1%) of goods bought online. Organized online retail is still only a
   fraction (0.3%) of overall retail market in India.
 By 2016, the conversion from visitors to buyers will stand at 2.90%, a little higher than 2.70% in 2013.
 The orders per buyer per month will grow from 1.55 in 2013 to 1.70 in 2016. And the number of orders per
   customer per year will grow from 3.2 percent in 2013 to 3.55 percent in 2016. 8

Current issues on online shopping:-
          More than half of the people who don't shop online lack trust or are worried about keeping their data
safe.A new report from the Office of Fair Trading (OFT) says that a third of internet users don’t shop online,
with a lack of trust cited as the biggest reason.Of the people not shopping online, some 30 per cent identified a
lack of trust; personal security was the problem for 20 per cent, while 15 per cent simply had no faith in online
retailers.“Online retailing is the future for many businesses and increasingly important to the economy,” said
OFT chief executive John Fingleton in a statement."If consumers are not confident online, demand will grow at
a slower rate. So we must tackle these concerns right now if the online market is to grow at its full potential,” he
added.

                            VI.      ANALYSIS & INTERPRETATION:-
                                                 Average Time
                                                                        UG      PG

                                                      67        69
                                                 60
                                       35                                  30
                                            21             18         15


                                    5-10 min     10-20     20-30     30 &
                                                  min       min      above



7.http://www.statista.com/statistics/289770/india-retail-e-commerce-sales/ retrieved on 28 Dec,2015
8. http://trak.in/tags/business/2014/04/04/indian-e-commerce-growth-stats/ retrieved on 28 Dec,2015
IES Management College and Research Centre                                                               40 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

                                         Spending Money
                                                               72


                                  42         45 44
                             35                           36
                                                                              29

                                                                         12                   UG
                                                                                              PG




                                             Annual Frequency
                            60
                            50
                            40
                            30
                            20
                            10
                             0
                                                      Two-               Four-         Six &
                                        One
                                                      Three              Five          above
                            UG          36                35              27             30
                            PG          42                55              54             36


                                              Influencing Factor
                       60                            55
                                        51                     51
                       50                                           42
                                                          39
                       40        3332                                              Promotion &
                                                                                   Advt
                       30                                                          Convenience
                       20                    12                                    Comparision
                       10
                                                                                   Transaction
                        0                                                          security
                                   UG                     PG




IES Management College and Research Centre                                                         41 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org


                                                   Reasons
                                                             58
                       60                                                    Comparatively
                                                        48                   Low prices
                       50                                         45
                                      38 36        36
                       40                                                    Wide variety of
                                 27           27                             product
                       30
                                                                             Various
                       20                                                    payment option
                       10
                                                                             Refund          &
                        0                                                    replacement
                                      UG                PG



                                              Type of Product
                                            63
                                                         53
                                                                                       47
                                       39                              36
                                                    29
                                                                            24    24



                                                                                 Health
                                                                     Home
                                     Electronic Fasion                            and
                                                                   and living
                                                                                 beauty
                                UG       39             29              36         24
                                PG       63             53              24         47

                        100                   Expectations
                                                        88
                         90
                         80
                                                                            Good quality
                         70                                                 product
                         60
                                                                            Adequate
                         50             44         42        42             payment option
                         40        33                                       Discount or
                                 27   24
                         30                                                 offers
                         20                         15                      Sufficient
                         10                                                 information
                            0
                                       UG               PG




IES Management College and Research Centre                                                       42 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

                                       Perception79
                        80
                                                                                Sufficient
                        70
                                                                                security
                        60                                                      Mechanisms
                                       44                                       Use customer’s
                        50                                 42                   data without
                                  36                             36             consent
                        40
                                                 30                   30
                                                                                Forwarded to
                        30
                                            18                                  marketing Co.
                        20
                                                                                Critical
                        10                                                      preventive
                         0                                                      measures
                                       UG                       PG



                                                       Problems
                                                           63 64
                                                                            Misuse of
                                                                            personal details
                                                      42                    Alter sales
                                       36                                   problems
                                  33        32
                             27
                                                                            Products
                                                                     18     guarantee is
                                                                            not assured
                                                                            Practically
                                                                            offers are
                                                                            promising

                                  UG                       PG


                                                  Safe & Secure
                         180                                       163
                         160
                         140                116
                         120
                         100                                                                 Yes
                          80                                                                 No
                          60
                          40                                               24
                                                      12
                          20
                             0
                                            UG                       PG



IES Management College and Research Centre                                                         43 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

                                          VII.     FINDINGS:-
1.   Majority of UG students i.e. 47% of them spend their time for about 10-20 minutes for online shopping and
     majority of PG students i.e. 37%of them spend their for 10-20 and 20-30 minutes for online shopping.
2.   Majority of UG students i.e. 35% of them spend Rs.500-1500 for shopping through online stores and 38%
     of PG students spend about Rs.1500-2500.
3.   28% of UG students purchase 1 or 2-3 items per year and 30% of PG students purchase 2-3 items per year
     through online shopping stores.
4.   30% of UG students buy products from online stores because of the wide variety of products available there
     and 32% of PG students do online shopping because of various payment options available.
5.   Majority of UG and PG students (28%and 35%) confirm that products guarantee is not assured through
     online shopping.
6.   33% of UG students think that online shopping is time saving and easy and convenient buying procedure
     and 33% of PG students think that buying procedure is easy and convenient by shopping through online
     stores.

                                VIII.     HYPOTHESIS TESTING:-
Hypothesis One: - Chi Square Tests
                                    Questions                             χ2 Value     df          p-value
         Average time for online shopping                                   24.901       3           0.000
         Amount of money spend for online shopping                          11.806       3           0.008
         Influencing factor for Online Shopping                             19.572       3           0.000
         Type of product you search for online shopping                       9.659      3             0.02
         Expectations from online shopping                                  18.438       3           0.000
         Problems you face during online shopping                             14.39      3           0.002
         Advantages of online shopping                                      10.749       3           0.013

RESULT OF HYPOTHESIS:-
The chi square statistic calculated value is more than the chi- square critical value. Hence, we accept the
alternate hypothesis that in Online Shopping, the buying behavior of undergraduate management students is
different than postgraduate management students.

Hypothesis Two: - Independent Sample T Tests
                                Questions                                t- value     P-value         Result
      Average time for online shopping                                       -.339        .735       p>0.05
      Amount of money spend for online shopping                              -.985          .325     p>0.05
      Frequency for online purchase                                          .448           .654     p>0.05
      Influencing factor for Online Shopping                               -1.185           .237     p>0.05
      Reasons for online purchase                                          -1.802           .073     p>0.05
      Expectations from online shopping                                      -.087          .930     p>0.05
      Perception about privacy policy for online shopping                    -.568          .571     p>0.05
      Problems you face during online shopping                               -.957          .340     p>0.05
      Advantages of online shopping                                          .954           .341     p>0.05

RESULT OF HYPOTHESIS:-
        The corresponding two- tailed p-value is more than the 0.05 level of significance. Hence, the Null
Hypothesis (H0) is accepted. The result of the t-test indicated that there is no significant relationship between
gender and online shopping.


IES Management College and Research Centre                                                                   44 |Page
(IESMCRC-2016)
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668
PP 35-45
www.iosrjournals.org

                                       IX.     SUGGESTIONS:-
          Keep operating system and browsers updated. Only use secured shopping sites for online shopping. A
secured site starts with “HTTPS://” instead of just “HTTP://”.Research the website before ordering goods and
services. Read the website’s privacy and security policies.Disclose only the bare facts when ordering goods and
services online.Be sure to understand the actual cost of the item including shipping charges, handling charges
and sales tax.After placing an order online, always print or save copies of the entire order.

                                        X.     CONCLUSION:-
         In nutshell, through this study it is found that majority of management students of North Maharashtra
University are well aware of the online shopping as 100% of them have made online purchase whichindicates
the growing popularity of the online shopping within the youngsters. Transformation in the trends ofshopping is
occurring because of the changing lifestyle of the consumers in India and expansion in onlineactivity. Major
draw card of online shopping is the ease and discounts available for different kind of products.Understanding
the young online shoppers enable the e-retailers to develop suitable marketing strategy in order toattract and
convert potential customer as an active customers.




IES Management College and Research Centre                                                           45 |Page
(IESMCRC-2016)
You can also read
Next part ... Cancel