SYNOPSIS
on
CONSUMER BEHAVIOR TOWARDS ELECTRONIC PRODUCTS IN
ONLINE SHOPPING
SUBMITTED TO:
SCHOOL OF MANAGEMENT, BAHRA UNIVERSITY
In partial fulfillment of the requirements for the award of degree of
Doctor of Philosophy (Ph.D.) in Management
SUBMITTED BY:
ROHIT SUBLAIK
(ID NO. BU2015RSMB003)
UNDER THE GUIDANCE OF:
( )
PROF. (DR.) AJAY PRASHER (Guide)
( )
DR. VINOD NEGI (Co-Guide)
SCHOOL OF MANAGEMENT
BAHRA UNIVERSITY, SHIMLA HILLS
WAKNAGHAT, DISTT. SOLAN
CONTENTS
[Link] PAGE No.
1. Introduction 1
2. Tech-Gadgets and Services Used by The Present Generation 1
2.1 Mobile/Cell Phone 1
2.2 Computer/Laptop 1
2.3 Services: Internet 1
3. Consumer Behavior 2
3.1 Online Buying Behavior 2
3.2 Factors influencing Online Buying Behavior 2
4. E-Gadgets Usage in India 2-3
5. Review of Literature 3-9
6. Need of the Study 9
7. Scope of the Study 9
8. Objectives of the Study 9-10
8.1 Hypothesis 10
9. Research Methodology 10
9.1 Research Design 10
9.2 Data Collection 10-11
9.3 Sampling and Tools Used for Analysis 11
10. Tentative Chapterisation 11
References
Bibliography
1. Introduction
The introduction of modern electronic products in the present era has captured the
attention of global population. The dependency of people on these techie products has reached at
such level that, without these, they can’t think a step forward in the direction of their growth.
This dependency of people on e-products is leading to addiction of the technological devices. It
is observed that teenagers are the most vulnerable group among the population to be addicted to
technology. (JyotiRanjanMuduli, 2013-14).
2. Tech-Gadgets and Services Used by the Present Generation
Now a days life is hard to imagine without electronic gadgets be it mobile phone or
laptops/tablets. People have become so used to these gadgets that they can keep skip there meals
but can’t afford to live a single day without their gadgets. Following section explain the most
popular e-products/gadgets used by the people these days.
2.1 Mobile/Cell phone
The role of a cell phone is to make and receive calls over a radio link while moving
around a wide geographical area. Mobile phone provides a variety of other services like text
messaging, playing music, internet access, infrared, Bluetooth, business applications, e-mail,
gaming and photography etc. It was first introduced in 1973. In 1983, the first mobile phone was
commercially available (Heeks, 2008).
2.2 Computer/Laptop
Computer is a device that can be programmed to carry out a finite set of arithmetic and
logical operations. Computer can solve more than one kind of problem at a particular time as a
sequence of operations can be readily changed. A laptop can be easily carried out due to its’
small size and battery support for energy, required to run it. The first laptop was invented in
1979 by British Designer Bill Maggridge.
2.3 Services: Internet
The internet is a huge network that links computers together all over the world using a
range of wires and wireless technologies. The World Wide Web is the collection of linked pages
those are accessed using the internet and a web browser. The purposes of using internet are
online shopping, social networking, games, news, travel information, business, advertising and
much more. One of the best common ways of finding information on the web is through the
search engines like Google, Bing. Currently the most popular search engine is Google which is
receiving hundreds of millions of search queries in a day.
3. Consumer Behavior
Consumer behavior is the study of individuals, groups, or organizations and the processes
they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy
their needs and wants. The study of consumer behavior not only helps to understand the past but
even predict the future. (Wikipedia).
3.1 Online Buying Behavior
Online shopping behavior of consumer is also called online buying behavior and internet
shopping or buying behavior. Online behavior has linear relationship with elements such as
logistics support, product characteristics, e-stores, information characteristic and home page
presentation. The past studies has shown that, those people who have wired lifestyles and who
have time constrained, they spend less time to buy things online (Lohse, Bellman, and Johnson,
1999).
3.2 Factors Influencing Online Consumer Behavior
There are many factors that have influence on online consumer behavior while an
individual would do online shopping, in simple word, it is a complex mixtures of so many factors
such as social, culture, education, race, personality, environment and resources availability. It
involves variables, some are controllable and some are uncontrollable. Uncontrollable variables
like environment, consumer personality always prevail in every online transaction but some are
in our span of control such as medium of exchange, products or services characteristics, and
merchant or inventory characteristics. Many factors for e.g. confidence, appealing website, trust
building, full information about goods and services are there by which purchasing decision
would be more encouraged.
4. E-Gadgets Usage in India
A present survey indicates that 60% of Bengaluru's youth between ages 12 and 18 shop
for electronic gadgets online. Next up in the preference list for these multi-channel shoppers is
books at 56%, movie tickets at 48%, and travel at 41% and clothes at 45%. The Youth Survey,
conducted by Tata Consultancy Services (TCS) for the year 2015-16, aims to track the changing
technological behavior of the youth. About 83% of children studying between Class VIII and
Class XII are smartphone users. Desktop PCs remain the most popular mode of accessing the
internet. 86% of Gen Y has a mobile; 77% has a PC; 55% own a laptop; 48% use a MP3 player;
35% has a gaming console and the fastest growth is in tablets as 32% own at least one.
Interestingly, out of these gadgets, mobile phones are the one which are the most favorite for
Gen Y.
Source:[Link]
Among brands, Samsung is the clear winner with 60% market capture of Gen Y usage. Apple is
the winner in metros while Sony is slowly reclaiming its position. Micromax is the fastest
growing brand in non-metros with 22% share.
5. Review of Literature
Present study is focused on the consumer behavior of people from Shimla the capital of
Himachal Pradesh. The study will be focused on the buying behavior in case of electronic
gadgets like mobile phones, laptops and accessories. Factors influencing the buying behavior in
selecting a particular brand, e.g. promotional strategies, advertisement and key decision makers,
will be studied in the present research. Intensive efforts have been made to find the relevant
studies in consumer behavior of people. For the research purpose, studies from Indian and
foreign countries will be reviewed. Studies in consumer behavior and marketing strategies have
also been considered for the research purpose. A summary of literature reviewed in
chronological order is mentioned below. There are many factors which affects consumer’s
buying behavior such as needs, attitudes, values, personality characteristics, personal
motivations, socio-economic and cultural background, age, sex, professional status to social
influences of various kinds exerted by family, friends, and colleagues.
5.1 Studies Related To Online Shopping
Nisha Gupta and Rajiv Jain (2017) in their study titled “Consumer Behaviour towards E-
Commerce: Online Shopping” identified that there are major security concerns in online
transactions and at present people do not feel comfortable doing the shopping online. They feel
that there are high risks of fraud and hoax in online business.
SanjeevPrashar, T. Sai Vijay (et al.) (2017) in their study titled “Effects of Online Shopping
Values and Website Cues on Purchase Behaviour: A Study Using S–O–R Framework”
advocated that E-retailers use web atmospherics to differentiate themselves from their
competitors.
Dr. Sanjay Hooda. Mr. Sandeep Aggarwal (2012) in their study the authors found that there is
no significant difference between internet surfing & gender of the respondents. A positive
relation exists between monthly income, occupation and purchase decision of the respondents.
Individual with higher income group usually have little time to go and purchase
products/services from tradition shops because of their busy schedule. Hence in order to save
time they trade online.
Niranjanmurthy M [Link], (2013)Analyzed e-commerce and m-commerce and expressed that, E-
commerce is widely considered the buying and selling of products over the internet, but any
transaction that is completed solely through electronic measures can be considered e-commerce.
These days, m-commerce is playing a major role in online retail marketing and people are using
this technology increasing all over the world. Mobile commerce involves all kind of electronic
transactions by the use of mobile phone. They mentioned various advantages, limitations and
growth drivers of m-commerce.
Friedman (1999), and Sirdeshmukh et al. (2002) Argue that consumers that engage in online
business to consumer transactions can find another provider to meet their expectations just by the
click of a mouse. As a result, they face minimal barriers to switching to another brand, especially
in cases of little differentiation amongst competing products.
Chung-Hoon, (2003), Constantinides, (2004), Kung et al., (2002), Lodorfos et al.,
(2003)Presented that, online brand loyalty suggests that consumers weight differently the
importance of factors influencing their purchasing decisions in the online market than those in
the traditional shopping environments, which in turn may affect their e-brand loyalty. Factors
that have been extensively covered in these researches as having a significant effect on the
consumers‟ purchasing decisions online are: beliefs about brand, price, trust, experience and
convenience.
Liberman and Stashevsky, (2002), Park and Kim, (2003) Show that the major concerns of
online shopping are security of online payments‟ and privacy of personal information”.
Hee Jung Lee (2016) in his study concluded that there are differences between online and
mobile shopping channel and these could affect to customer behaviors. Hedonic motivation
influences more on regulatory focus in mobile channel than online one. This study further
suggests that shopping motivations are effective to promote regulatory focuses differently in
online and mobile channel.
5.2 Studies Related To Online Purchasing Behaviour
Mesay Sata, (2013) investigated in his study the factors affecting the decision of buying mobile
phone devices in Hawassa town and concluded that consumer’s value price followed by mobile
phone attributes as the most important variable amongst all. This factor, also acted as a
motivational force that influences them to go for a mobile phone purchase decision.
Surendra Malviya and Manminder Singh Saluja, (2013), studied the factors influencing
consumer’s purchase decision towards smartphones in Indore. This research provides new
marketing dynamics to the leading mobile companies for a market. The main objective of this
research is to identify the key factors which have a dominating effect on the consumers’ minds
while making a purchase of smartphone.
Inge Hutagalung (2016), in his research examined consumer behavior of the Z generation
adolescent on the ad information of Smartphone selection. The method used in the research was
Interpretative Phenomenological Analysis (IPA) and the results show that the audiences are not
passive and have resistance in accepting ad information.
Marzieh Zendehdel et al. (2016) in their collective study concluded that significant moderation
effects with regards to the association of subjective norm and attitude, perceived risk and other
factor were significantly correlated with the attitude towards online shopping while perceived
risk was observed to be negatively significant on attitude.
Herman FassouHaba et al. (2017) in their study concluded that social value and perceived ease
of use do not have a direct or indirect effect on smartphone purchase intention among Malaysian
working professionals. Factors like economic value, perceived usefulness and brand image have
an indirect effect on smartphone purchase intention.
I.C Nwaizugbo and Ifeanyichukwu C.D (2016) in their study titled “Understanding
Consumers’ Behaviour towards Online Shopping: A Study of Online Shoppers in Anambra
State” studied the relationship between perceived outcome, shopping orientations, shopping
motivations, normative beliefs, and past experience on online shopping. The study revealed that
normative beliefs, and past experience has significant effect on online shopping while perceived
outcome, shopping orientations and shopping motivations was seen to have no significant effect.
Manish Kumar (2016) in his study provides some useful insights on consumers’ purchasing
intention and behavior. It has been revealed that the three key factors, i.e., price, ratings, and
reviews affect the consumers’ intention for online shopping.
Doolinet et. al., (2005) in their study showed that risks related to privacy have a negative
association with online purchasing behavior and deter Internet users from shopping online
frequently and from spending significant amounts of money.
Vijayasarathy & Jones, (2000), Park, (2002), Brown, et. al., (2001) revealed in their study that
online retailers must understand customers shopping orientations in order to maximize
customers’ online purchase intention. Many researchers have investigated that shopping
orientations have significant impact on customer online purchase intention.
Shwu-Ing Wu, (2015) in his study developed the relationship between consumer characteristics
and attitude towards online shopping. He examined the internet user concerns and perceptions of
online shopping, used the Fishbein model to measure consumer attitudes and the important
consumer characteristics that influence online shopping attitude and decisions.
Chen (2009) in his study extends theory of planned behavior by including 10 important
antecedents as external beliefs to online consumer behavior. The study shows that trust and
perceived ease of use are essential in determining online consumer behavior.
Ying (2006) in his study titled “Essay on modeling consumer behavior in online shopping
environments” investigated that online purchase behavior across multiple shopping sessions.
According to him, shopping cart abandonment is the problem of many e-commerce websites.
Specifically, he developed a joint model for the cart, order, and purchase quantity decisions.
Customers routinely pick up abandoned carts and complete the final orders. He investigated
abandoned shopping carts in an online grocery shopping setting. The key factors involved in
aborted shopping are the time of shopping, time elapsed since the previous visit, the number of
items left in the abandoned cart and promotion intensity.
5.3 Studies Related To Technology Acceptance Model (TAM)
Davis, Bagozzi & Warshaw, (1989) in their study showcase that a key purpose of TAM is to
provide a basis for tracing the impact of external factors on internal beliefs, attitude and
intention; TAM states that, two particular beliefs; perceived usefulness and perceived ease of use
are primary relevance for computer acceptance behaviors.
Yulihasri [Link]. (2011) in their study discuss the factors influencing the customers buying
intention using online shopping based on the TRA and TAM concluded that Compatibility,
usefulness, ease of use and security are the important predictors towards attitude in on-line
shopping.
Fishbein and Ajzen (1975), and Davis (1989) Fishbein and Ajzen (1975) presented the Theory
of Reasoned Action (TRA) and Davis (1989) presented the Technology Acceptance Model
(TAM) which provided theoretical context to measure beliefs, forecast future behavior.
According to Fishbein and Ajzen 1975, the TAM model accommodates the Theory of Reasoned
Action (TRA) to show acceptance to information technology. TAM involves two beliefs of
specific behavior (i.e. determine the individual intention and behavior to use a technology, ease
of use and usefulness) where attitudes toward use directly influence the intention for the actual
usage.
Vijayasarathy, (2003) in his study investigated that TAM also figures a harmony link between
ease of use and usefulness; proposed individual’s perception how easy or difficult to use that
system will influence their perception about usefulness of that system.
5.4 Studies Related To Technology
Tsitsika & Janikian, (2013) concluded from their study that internet continues to grow beyond
our belief. Nearly 32.7% of the world’s population has access to the social networking sites like
Face book, Twitter, Linked-In, YouTube, Flicker, blogs, etc. which allows people to rapidly
share their interests of the moment with others everywhere. So the interconnectedness
throughout the world is growing rapidly due to internet use.
Samson, (2010) investigated from his study that when students use laptops and other tech-
devices by the instructor’s advice they are connected to course learning objectives. The learning
and involvement of the young students can be impacted positively by the use of these digital
devices.
Ophir, Nass & Wagner, (2009) in their study concluded that individuals who are engaged in
high level of technical activities through the digital devices are better in performing cognitive
tasks. The effective use of these gadgets may have positive impacts on cognitive thinking and
also makes them master multitasking.
Sellen & Harper, (2002) in their study found that in the medical set up the use of digital devices
may help to a great extent. Easy storage, searching and sharing of patient information through
the computers and accessibility of knowledge regarding recent health related inventions through
internet, have made the work of the medicos easier.
Walsh, (2012) concluded that it would have been a lot better if the drawbacks or the negative
impacts of the use of the digital services would have been known before some years. As the use
of digital services has negative impact, students should minimize the use of these tools and
should be aware about its use.
Erickson, (2012) in his study revealed that the voracious use of tech services has negative
impacts on the youth. As a result, youth want to do things faster, easier and cheaply. Everybody
wants to do things according to their own schedule and pace, failing in which they become
anxious. Face to face communication is avoided by the young mass, which is not good for the
society.
Cabral, (2011) found in his study that generation-Y i.e. the present generation is psychologically
addicted to the social Medias like face book, Twitter, Linked In etc. This addiction towards
media is responsible for intra-psychic conflicts such as intolerance and relapse among the youth.
Cotton, (2001) in his study concluded that internet gaming and shopping is causing depressive
symptoms among the college students. Implementation of programmes is needed to detect and
decrease these activities among them.
Young, (2004) Excessive technology use may affect academic performance, relationships, as
well as overall development among youth. Such technology use has been identified as
technology addiction and it has many negative impacts on health and social behavior.
6. Need of the Study
There are millions of people online any time and they all are a potential consumer in the
online market. What are the various factors that influence the buying behavior and perception of
a consumer? Gadgets become obsolete over a period of time and new technological
advancements take place. At present people feel that there are major security concerns in online
transactions and do not feel comfortable doing the shopping online. They feel that there are high
risks of fraud and hoax in online business. Online advertising is just beginning to root itself in
the business world of INDIA because of which not all the products are available. Even famous
brands place only selective items online and hence there are fewer choices available on the
internet. Since it’s a new concept people are still not totally used to it because of which they feel
uncomfortable shopping online. They feel that the product would be tampered with and the
quality wouldn’t be the same (Consumer Behavior towards E- Commerce: Online Shopping by
Nisha Gupta and Rajiv Jain, 2017).
Limited research has been done in this field especially in Himachal Pradesh and therefore
it calls for a focused research in this area.
7. Scope of the Study
Electronic products have captured the attention of global population. The individual’s
dependence on these technological products has reached at such level that, without these, they
can’t think a step forward in the direction of their growth. The degree of dependency is leading
to addiction of the tech-devices. Therefore, research will be carried out in the capital of
Himachal Pradesh (i.e. Shimla) as less research has been done in this State.
8. Objectives of the Study
1. To analyze the various factors influencing the online shopping behavior of the consumers
towards electronic gadgets.
2. To find out the impact of marketing tools in determining the buying behavior of consumers.
3. To identify the most preferred website and most preferred brand of electronic gadgets.
4. To know the consumers awareness about online shopping.
5. To identify the barriers faced by consumers during online shopping.
8.1 Hypothesis
Following hypothesis are framed to achieve the research objectives:
H0: Socio-economic and cultural factors has no significant relationship in purchasing of
electronic gadgets.
HA: Socio-economic and cultural factors has significant relationship in purchasing of electronic
gadgets.
H0: Promotional activities by websites has no significant relationship in purchasing of electronic
gadgets.
HA: Promotional activities by websites has significant relationship in purchasing of electronic
gadgets.
9. Research Methodology
This section will illustrate the way of the research and it will be conducted by presenting
the methodologies and theories used. The technical details of the research will be described and
detailed in following sections. Important issues such as, philosophy of the research, preparation
of the research, the method and procedure of data collection, components of questionnaire,
sampling decision will be covered below.
9.1 Research Design
A research design is basis frame work, which provides guidelines for the rest of research
process. It is the map or blueprint according to which, the research is to be conducted. The
research design specifies the method of study. Research design is prepared after formulating the
research problem and need to be most suitable to solve the problem. This study will utilize a
survey of research design and will be qualitative in nature. A self-administered questionnaire will
be developed and the same will be used to measure the response of target population towards
electronic gadgets.
9.2 Data Collection
The success of an inquiry depends upon proper data collection. The data will be collected
by making use of both Primary as well as Secondary Data. Primary data consists of original
information for the specific purpose at hand. In the case of primary data, questionnaire would be
used and in the case of secondary data, the data will be collected from books, newspapers,
journals, articles, published reports and internet.
9.3 Sampling and Tools Used for Analyses
The research design adopted in this study will be survey. The population of this study
will comprise of online shoppers in Shimla the capital of Himachal Pradesh. In order to address
the research objective the participants will be selected using a non-probability sampling method.
There are many different types of non-probability sampling methods; two types of this sampling
method are sufficiently used in this research; snowball sampling and purposive sampling.
Snowball sampling is used when it is difficult to identify members of the desired population
(Saunders et al, 2009; 240).
450 respondents will be surveyed as per snowball sampling to accomplish research
objectives (150 respondents per electronic gadget). Structured questionnaire will be distributed
for data collection. The data collected will be analyzed using descriptive and inferential statistics.
Multiple linear regression, Factor Analysis and more appropriate statistical test will be used as
per the nature and requirement of data.
10. Tentative Chapterisation
Chapter 1: Introduction
1. Significance of the topic
2. Objectives of the study
3. Study Area Profile
4. Concept of Online Consumer Behaviour towards Electronic Gadgets
Chapter 2: Review of Literature
Chapter 3: Research Methodology
1. Research design
2. Sources of data
3. Sampling plans
4. Data Collection Tools
5. Scaling techniques
6. Limitations of the survey
Chapter 4: Data Analysis & Interpretation
Chapter 5: Recommendations, Suggestions and Conclusion
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