Factors Influencing Online Shopping Behavior of Students in Engineering Colleges at RangaReddy District

Abstract

With a huge portion of young and working population, Indian demographics are a delight for e-retailers. Therefore, this research has tried to analyze the online shopping behavior and online shopping activities of UG & PG students in engineering colleges in RangaReddy Region. This study finds out whether students studying in Engineering Colleges are comfortable with the click-of-the mouse purchase or any particular factor of online buying, which delights him. To answer such questions, the present research provides an insight. This study aims to classify the most important factors consider, using correlation analysis, which influence online buyer while making online purchases. The results have shown that various reasons like time saving, less price, promotional activities offered by e-retailers, and ease in payment are the factors influencing online shopping behavior of the engineering student. Research results show that both male and female are more interested to purchase goods such as apparels, electronics, and books.

Headnote

Abstract

Online shopping is in advance thrust in India Inc. With internet penetration improving in the country, smart phones becoming inexpensive and lifestyles becoming excited, the way people used to shop are varying. Also with a huge portion of young and working population, Indian demographics are a delight for E-Retailers. As a shopping medium, internet is attracting humans. Youthful people can get used to newer technologies in very short span. Hence they can adapt internet as an instrument for shopping. In order to get the trust and attention of Indian consumers in this virtual shopping world there are numerous aspects of consumer behavior which call forexploration. This research has tried to analyze the online shopping behavior and online shopping activities of UG & PG students in engineering colleges in RangaReddy Region. This study finds out whether students studying in Engineering Collegesare comfortable with the click-of-the mouse purchase, any particular factor of online buying which delights him. To answer such questions the present research provides an insight. This study aims to classify the most important factors which influence online buyer considers while making online purchases by Correlation analysis. The results have shown various reasons like time saving, less price, promotional activities offered by E-Retailers, Ease in payment are the factors influencing online shopping behavior of Student respondents Research results show that both male & female are more interested to purchase goods such as Apparels, electronics, Books.

1. Introduction

At present, Internet is not simply a networking media, but it is furthermore used as a means of transaction for consumers at worldwide market. The usage of Internet has grown rapidlyover the past years and it has turn out to be a universal means for delivering and tradinginformation, services and goods.Even Indian Government is promoting EServices. NeGP (National e-Govemance Plan) is a plan of the Government of India to make all administration services available to the citizens of India via electronic media. This plan was aconclusion of the recommendations of the second Administrative Reforms Commission.lt is under the administration of the Department of Information Technology of the Ministry of Communications and Information Technology, Government of India.

But fortunately or unfortunately this policy can be utilized by more of literates than illiterates. This study enables to know the factors that influence online buying behavior of student's. The focus of the study is to analyze the pros & cons of student's perception towards e-shopping. As they are much more aware of purchase modes & payment modes. Also this study enables to understand motivational drives of students to purchase goods online.

India has an internet client base of about 213 million as of Jan 2014 and 243 million by June 2014.The penetration of e-commerce is low compared to markets like the United States and the United Kingdom but is growingat a much faster rate with a huge digit of new entrants.Internet Penetration in India, given its populace, is still low. That's the cause for the growth rate here to be much elevated than that in the US. The industry consensus is that growth is at an inflection point.The growth in the US was slow, as it already had more than 200 million of its 300 million populations using the internet. India, on the other hand, has a large addressable mass. So, the growth rate is much higher.

To understand what Indian consumer is buying online and what the factors arecoming in his/her mind while exploring the online stores, this study is being undertaken. In fact in a study conducted by the name of "Great Online Shopping Festival" has found that more than 50% of online buying is contributed by non-metros than Metros (Google India, 2013). In fact to highlight the increasing popularity of e-retailing the same study (Google India, 2013) has found that 2013 has been a phenomenal growth year in the chapters of Indian online shopping story as it has witnessed 128% increase in consumer interest in the year 2011-12.

With theever-increasing usage of smart phones and enhanced broadband connectivity, the online shopping trend isgetting a boost. Also the kind of convenience attached by doing shopping with the click of the mouse this trend is further going to get boost up. Our daily schedules are getting more chaotic and further with increasing fuel expenses, trip to our favorite retail stores has become expensive. In such a circumstances consumers have started appreciating the hassle free online shopping mode. Yes, visiting favorite store has a factor of hedonic pleasure attached to it, but simplicity of saving time, energy and efforts has started taking priority.

Here are the Top five reasons to purchase online are cash on delivery, fast delivery, considerable discounts compared to market, access to brands, cash back guaranty on faulty goods. Top five reasons for not purchasing or preventing goods online are ability to touch and try goods before purchasing, ability to return faulty purchase goods, immediate access of goods after purchase, unwillingness to post personal & financial details on internet, in ability to bargain.

The study has been conducted on students of engineering colleges in RangaReddy District. In this study attempt has been made to analyze factors influencing online shopping behavior of students.To explain the model used for the study, the study was done by taking demographic features of the consumers who were purchasing goods online. Seven factors or dimensions were analyzed based on which the factors influencing the student buying behavior was analyzed. The seven factors are time, price, promotions, ease in payment, USP, privacy / securityand value for money.

2. Review of Literature

According to the latest survey conducted by Google& TNS Austailia"Online Shopping Trends in India, 2013 - A Google India report", the study indicates that 9 out of 10 online customers intend to spend more on online shopping. The areas that contribute to growth include a greater contribution from non-metros than metros. Shoppers have shifted to apparels and accessories as a category; this category has emerged as one of the most purchased category. In 2014 this category will overtake electronics to become a leading category on online shopping. There will be increasing contribution from new emerging categories like baby products, heath care products, home & furnishing. Jongeun Kim says in her study 'Analyzing College Students' Online Shopping Behavior through Attitude and Intention' that the consumer factor, comprised of privacy, security and trust, time saving, ease of use, convenience, enjoyment provided by shopping, company reputation and tactility, was most significant for who intended to purchase online and who did buy online. Chuck comegys in his study investigated that the online purchase behavior of a key segment of the population, the "Net Generation" undergraduate college-aged student, from two of the countries with the greatest potential for e-marketing opportunity, the United States and Ireland. In addition to identifying college students' Internet activities, his research provides useful comparative information concerning how frequently students from each country interactively shop online, how much they spend, what they purchase, as well as respond the question whether students from the two countries under study approach the Buyer Decision Process differently in their use of the Internet. Research summarized by Deborah H.Lester (2005)focused on college-age consumers' responses to purchasing on the Internet. Young adults were exclusively targeted because of their generation's tech-sawy embracing of anything wired. Over 780 university students were surveyed and answered a 108-item selfadministered questionnaire. The study specifically addressed the issues of how often and why Internet purchases were made. As expected over 95% of the college-age market uses the Internet and over 91% of that group completes online purchases. Close to a quarter of the buyers are spending over $500 per year on Internet merchandise and they are making those purchases with their own credit cards. They are purchasing banking service, concert tickets, apparel and entertainment products. These young adults are also purchasing cars, mortgages and appliances over the Internet, but in smaller numbers.Dawn Valentine, Georgia Southwestern State University (2013)in his paper examines online product search and purchase behaviors of Generation Y. A survey of 116 undergraduate college students with questions regarding the types of products researched and purchased over the Internet, the type of information they looked for when researching the products, reasons for not purchasing products online, and reasons for returning products purchased over the Internet. While both male and female college students use the Internet to research and purchase products, the findings indicate that they differ significantly in the types of products they research and purchase online, the kinds of information they required when researching products over the Internet, and their reasons for not purchasing a product online.

3. Obj ective of Study

The objective of the study is to analyze the factors influencing online shopping behavior of students in engineering colleges.

4. Research Methodology

Data Collection and Questionnaire Design: To understand influencing factors of online shopping both primary as well as secondary data hasbeen used.

This study is based on Primary Data Collected by administering questionnaire to 100 Respondents in RangaReddy District. The respondents were students studying in engineering college who have online shopping experience.Engineering Colleges in this Region includes UG & PG courses such as B.Tech, B.Pharmcy, Mtech, MBA and MCA. Survey method was adopted for this study. To collect the primary data aquestionnaire was developed with questions based on demographic profile of the respondents and 7 factors and 13 elements to measure the attitude of respondents on a five point likert scale.

Sample Size and Sampling Method: To collect the data convenience sampling method was used Students were asked to participate research voluntarily. Finallyl54 questionnaire were given to students and 126 questionnaire returned from the participants. After checking questionnaire 26 questionnaire were eliminated and finally research carried with 100 questionnaires.

Statistical Analysis: To explain the factors or dimensions influencing the consumer behavior to purchase online, the data was statistically analyzed by using SPSS (version 16.00), tools & techniques used are t-test, correlation bivariate analysis was done. Also the researcher has used pivot tables to analyze the data.

5. Data Analysis & Findings of the Study

Gender preference to purchase various types or categories of goods

Research participants when compared by gender and preference of purchase category result showed that 45% of female are attracted to purchase apparel's when compared with male only 35% prefer to purchase apparels. More male "35%" interested in purchasing electronic goods online when compared to female only 16% are interested in purchasing Electronic goods, 24% of female are interested in purchasing books. 15% of male are interested in purchasing books. 13% of female are interested in purchasing other products such as shoes, makeup products, accessories etc.Result shows that both male and female are preferring to purchase apparels online. While same level of importance is given by males to purchase electronic products online.

Demographic influence on preference to purchase online frequently

Research participants when analyzed on the basis of demographic features such as age factor and education level factor, it is identified that under graduate students (18%) under the age group 18-25 years are the most participants who prefer online shopping than any other mode of purchasing goods. This shows a positive trend towards online shopping. Even post graduate students (06%) prefer to purchase more frequently online. 21 % of under graduate students of Age group between 18-25 years prefer to purchase once a year, 10% post graduate students of age group 18-25 years& students of the same category whose age is more than 25 years are preferring to purchase once a year. Hence online shopping websites can create more attracting promotional offers with much penetrating pricing strategies in order to attract and grab this section of people. 28% under graduate students of Age group between 18-25 years prefer to purchase once in six months. Based on this finding it can be said that most of the undergraduate students are using online shopping. Post graduate students 46% have never purchased online.

Research participants when analyzed on the basis of age factor 41% of students under the age group 18-25 years are preferring to purchase apparels online, 29% of the age group above 25 years are also preferring to purchase apparels and other category of goods such as shoes, accessories, cosmetics etc online. 28% of the students under age group 18-25 years prefer to purchase electronics. Next 19% of the same age are preferring to purchase books online. 14 % of the participants who are above 25 years are interested to purchase books, electronics, FMCG products. Based on this finding it can be said that young students under the age group 18-25 are attracted towards purchasing apparels' online. Apparels and Electronics has emerged as the most purchased categories.

Research participants when analyzed on the basis of age & gender 48% of female & 35% of male under the age group 18-25 years are preferring to purchase apparels online, while 20% of female above 25 years & 50% of male in same category prefer to purchase apparels online. 24% of the female & 15% of male under the age group 18-25 years are preferring to purchase books online. 20% of female above 25 years are preferring to purchase books online. 35% of the male of 18-25 years prefer to purchase electronic goods online. 40% of female above 25 years prefer to purchase other category of goods online. 20% of the same age & gender prefer to purchase FMCG goods online. According to the results female of 18-25 years age group & Male of above 25 years are preferring to purchase apparels online. Apparels & Electronics are the most preferred goods to purchase online. 24% Females prefer to purchase books online.

Factors influencing in making purchase decision by participant demographic features

Research participants Mean score compared by their gender and age results were given in table 5. According to the results there was a significant difference in online shopping behavior. Male

Participants who are above 25 years of age have more sub scale score (M=5.43, SD=0.92) think that online shopping saves time than female participants of the same age group (M=4.5, SD= 1.04). While Male Participants who are 18-25 years of age have more sub scale score (M=4.2, SD=1.026) say that online shopping saves time, female participants of the same age group is (M=4.34, SD=1.021).

Research participants mean score when analyzed from student responses towards factors influencing in making online purchase decision, it is observed that most motivating drive to make online purchase is time factor and male participants (M=4.38, SD=1.088) mean score is more when compared to females (M=4.36, SD=1.014). The next motivating factor to make online purchase is ease in payment, male participants (M=3.98, SD=1.198) mean score is more when compared to females (M=3.68, SD=1.459). The next factor which is influencing the purchase behavior is price, most of the male participants (M=3.96, SD=1.175) prefer this factor. The next preferred option is promotional offers provided by online retailers, the mean score of male participants (M=3.96, SD=1.175) is high when compared to female participants mean score (M=3.84, SD=1.765). les preference has been given to factors like Online shopping provides Value for money &Shopping online provides Privacy / security to customer. Results show that male participants top preference to purchase online involves time saving, ease in payment etc, where as female participants top preferences are time factor, promotions and ease in payment.

Research participants when analyzed on the family income & purchase frequency, it is analyzed that income groups who are having family income more than Rs 60,000 are purchasing goods more frequently .

When analyzed on the student personal income (pocket money)& purchase frequency, 41% of students who are having pocket income with "More than Rs 3000" are purchasing more frequently online and 9% of student respondents who are having pocket income between" Rs 2000-Rs 3000" are least interested in purchasing online. 71% of Students who are getting pocket money "less than Rs 1000" have never done online shopping.

The above table explains about the most preferred category of products by the respondents. Frequency of "Apparels" is 34 and it is the product category which is purchased mostly by the respondents. Respondents next preference of purchase is "Electronics" and its frequency is 23, "Books" is the next most purchased products by the online users, frequency of online books purchasers is 16. The preferred goods to purchase online is "Music & Software" frequency is 2.

In order to understand correlation among the sub scale, correlation test was done and this can be seen in Table 10. According to the correlation results there is

Positive and weak correlation between online shopping saves time in purchasing, online prices are low, promotional offer in online shopping is main choice of shopping, unique selling proposition, ease in payment, online shopping provides value for the money, shopping online provides privacy/security to customer sub scale sores were found.

Positive and somewhat relation between online shopping saves time in purchasing and Promotional offer in online shopping is the main choice of shopping, Unique products are available in online shopping, Ease in payment for the goods, Online shopping provides Value for money, Shopping online provides Privacy / security to customer.

While negative and somewhat weak correlation between online shopping saves time in purchasing and online shopping provides value for the money,ease in payment.

Conclusions & Suggestions

As the expectation of the E-Shoppers are increasing day by day, so do E-commerce spending is increasing in a rapid rate. The study reveals that Male students are more interested in purchasing goods online when compared to female students. This study exhibits that the Factors such as shopping online saves time, availability of the product for less price, promotions that ERetailers are providing, ease in payment are the motivating drives to encourage students to shop more online. However both male & female respondents were preferring to purchase goods online and they were more interested to buy apparels, electronic goods and books through online. E-Retailers must try to encourage Net banking mode other than card payment mode in order to improve privacy & security of their customers. Also they should try to provide value for money to the customers.

References

References

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