The impact of internal and external factors influencing the online purchasing behavior of consumers in India
The advent of the internet has made it easier for consumers to access information related to product and services before they make up their mind to purchase the same. Consumers play a vital part as because they are the ones through which marketers gain profit and introduce the latest service and product offering in terms of satisfying their needs(Quester, et al., 2007). This research is based on evaluating the impact of internal and external factors influencing the online purchasing behaviourof consumers in India. In this report, the concept of online purchasing behaviour concerning the consumers will be briefly explained, for the same a particular product will be taken under consideration such as fashion wear. Furthermore, as the study progress, it will also evaluate the key internal and external and external factors which comprise of ease of use, personal experience and time management, where data are being extracted to determine results, this helped engineering management to perform coherent research.Whereas, the external factors comprises of service quality, easy payment options, and easy accessibility. This report will also evaluate the stages of consumer purchasing behaviour which will help in identifying the consumer decision-making process before making up their mind to purchase any product and service.
Internal factors that influence the online purchasing behaviour of the consumer when purchasing fashion wear include ease of use, where consumers can access information about the latest products and services along with its specification. Moreover, it has also been identified that the availability of a wide range of fashion wear products has also made it easier for consumers to purchase their shortlisted items without being travelling to the physical store. Ease of use among the customers has also provided the option of making hassle-free payment as a result of which people have the opportunity of making impulse buying behaviour(Sethna & Blythe, 2016). Personal experience as internal factors also plays a crucial role because customers are likely to purchase fashion wear products based on their prior experiences from online shopping. The experience of a feel-good factor among the customers before making out their online purchasing decision in regards to fashion wear drives down the attention of the customers towards online shopping. The personal trait is a crucial internal factor that influences the online purchasing behavior of consumers in India. Self-image illustrates the image that the individuals carry and what they think about themselves when they make their purchase decision regarding fashion wear from the online platform. Consumer’s perception towards fashion wear products also increases the value that influences the behavior of the consumers towards making their purchase decisions through online platforms. Time management is an internal factor that also influences the behaviour of the consumers towards making their purchase decisions through online platforms. Consumers make up their purchase decisions from online platforms because it helps them in saving their time and money which helps the consumers in selecting the best available fashion wear products from the online platforms.
Whereas, contradictory to it the external factors that have been identified in online purchasing behaviour among the customers include service quality of the products. It has been noted out that online retail firm focuses towards providing better service qualities of fashion wear to the customers in terms of luring them towards the platform. Moreover, enhanced service quality of products and services satisfies the expectation of customers along with looks to increase the customer traffic in the online platform, to generate high profitability ease of accessibility as an external factor also plays a vital part in influencing the online shopping behaviour among the customers(Szmigin & Piacentini, 2018). Different sources of media platforms make it easier for customers to access information about the latest productsof fashion wear, resulting in the customers to be updated with the latest trends within the retail business organisation.
The growth of the internet has great influence over the consumers at present, which has allowed the customers to access information within no time and save cost. Therefore, studying consumer purchasing behaviour becomes an essential topic for the researcher and the marketers to understand the behaviour of the customers. It has been noted that some of the crucial factors that influence the behaviour of the consumer include the rise of electronic commerce, which has made it easier for the people to compare and contrast between the two distinct products and then determines their purchasing behaviour(Pappas, 2016). Based on the survey results that have been performed among the Indian consumers it has been noted that online sales within the country have made a profit of $ 521 billion(Ibef, 2019). The situational factor of online shopping also influences the purchasing behaviour of the employees which comprises of promotional offers, low prices, and goods and easy access, all of these factors contribute towards shaping the behaviour of the consumers towards online shopping.
Some of the major factors that have influenced the online shopping behaviour among the customers include the growth of the online marketplace. The Indian online is expected to grow at the rate of 6.2% annually, where more than the US 38 billion dollars of FDI invested has been estimated(Ibef, 2019). Some of the largest retail organisation in the world such as Alibaba, H&M FCUK and Zara are planning to launch their mobile application in the country to meet the growing expectation of the customers along with keeping the customers updated with the latest trends. One of the most crucial growths that have been seen in the online marketplace is the growth of technology. SEO has benefited both the customers and the organisation, where it has been noted that the organisation uses SEO to promote their latest products and services among the customers. On the other hand SEO among the customers has made it easier for the customers to access information and then determine their purchase decision(Marriott, et al., 2017). During the study, it has also been evaluated that customer’s feedback also helps in determining the purchasing decision among the customers, which further assist the engineering and management to determine the result and carry out the study further. Feedbacks and reviews that are listed within the online platform by other product users help the customers in determining their purchasing decision. Therefore, combining the entire above factor it can be stated that the online purchasing behavior of the customers is based upon both internal and external factors.
This research study is based on evaluating the impact of internal and external factors influencing the online purchasing behaviour of consumers in India. The research rationale in the study will help the observer in determining the purpose of the study, along with identifying the critical factors that contribute to identifying the online purchasing decision of customers. Moreover, the section of the research rationale will also evaluate the perception of customers towards online shopping.This research study is essential to evaluate because it explains the concept of online shopping and how does it affect the behaviors of the consumers. Furthermore, this research will also evaluate both the internal and external factors that influence the online purchasing behaviour of consumers in India. Moreover, this study will also briefly explain the purchasing stages of the consumer which they take under consideration before they make up their mind to purchase any products and services.Furthermore, through the purchasing stages of consumer their ability to make a comparison based on specification, price and service quality will also be eventually described during this study. Other important factors will also be observed and evaluated which impacts the online marketplace and affects the decision making capability of the people.
The research aims to evaluate the impact of internal and external factors influencing the online purchasing behaviour of consumers in India. This research has briefly explained the internal and external factors that impact the purchasing behaviour of the consumers in India, where the results can be measured and analysed through statistical data sets. Therefore, it becomes essential for engineering management to consider this topic for the research.
The objectives of this research topic are as follows.
- To determine the concept of online buyingbehaviour
- To evaluate the consumer buying process
- To determine the internal factors influencing the online purchasing behaviour of consumers
- To determine the external factors influencing the online purchasing behaviour of consumers
The research question for the topic is as follows.
- What are the internal factors and external factors that influence the online purchasing behavior of consumers?
The increase in the application of internet technology has to lead businesses to shift their processes over the digital medium. The customers have also felt comfortable while buying the products over digital mediums as a simplification in choice of the products and delivery has been achieved(Karlsson, et al., 2015). The physical stores have also established their online platform for increasing their span in the field of retail, fashion and other products like electronics. Due to improving the technical infrastructure, the payment process of the business has also simplified and the delivery process has become quick which has added value to consumers(Al-Bakri & Katsioloudes, 2015). The number of businesses operating over digital mediums has increased in a rapid number which has raised the requirement of following systematic guidelines and product delivery patterns for gaining concern from most of the customers.
As the number of competitors has increased in the business, the marketers have to pay attention to the customer demands and needs for inclining the product or service pattern in that direction(Bouzenita & Boulanouar, 2016). Diversified range of customer buying behavior theories has been analyzed for choosing the particular service or products by customers. The internal and external factors which have influenced the customer buying behavior are indicated in the study with clear justification and from the perspective of India. Also, the buying behavior of consumers has inclined towards the companies which have reputation and brand image for operating over the years(Doherty & Dickmann, 2012). In India, E-commerce businesses have been increased in a rapid figure and the firms have mainly operated in the clothing and electronics sector. In the section, the overview of the online buying behavior of customers and the stages of the customer buying process are demonstrated. Moreover, the internal and external factors which affect the buying behavior of customers are included in the study.
2.2 Concept of online buying behavior
According to (Nguyen, et al., 2018)online buying behaviour of the consumers has changed drastically, due to the factors of advent in technology, ease of accessing information along easy payment options. Buyers now have the alternative option of buying a product or availing of a service from the online platform once they are being distinguished based on their characteristics. The online buying behaviour of the consumers has been influenced because of the internet which now acts as a mode of exchange between the buyers and the sellers and has created an alternative traditional marketplace(Sethna & Blythe, 2016). Online buying behavior is also known as a type of behavior exhibited by the customers while browsing websites of e-tailer to search, select and purchase goods and services.
As stated by Kumar & Ghodeswar, (2015)customers while determining their online purchasing behavior research through a vast amount of information where they eventually sort out the product based on specific criteria. The online buying behavior of the customers includes three most crucial criteria which include process information, information transfer and purchasing product. The advent of the online marketplace has helped the customers in accessing information within no time. Similarly, it has also been noticed that the first stage of buying behavior among the customers includes processing information, where they gather information from different sources and compare them based on their specialty, durability, price and other factors(Rothenberg & Matthews, 2017). Processing all the information helps the customers in searching out for the best suitable products and services that match up to their expectations. Personal characteristics of the customers also play a vital part because their attitudes towards the product help them in determining their online purchasing decision. The second stage includes information transfer where the customers share the gathered information with their peer groups where they gather their feedbacks towards the information and then determine their purchasing decision. The final stage is purchasing products, once the customers are done through searching products that match their satisfaction level then they make up their mind to purchase the product, for their usage.According to Peláez, Cabrera, & Vargas, (2018) the concept of online buying behavior among the customers also depends upon the internet because the emerge of the internet has brought a sea of changes among the mindset of the customers regarding price, speed and product information associated with online shopping. The benefits of online shopping have transformed the buying behavior among the customers because they allow them to browse through the entire range of products and services that are offered by e-vendors. Furthermore, a notable feature that has been identified in online shopping is that with the help of search features e-shoppers can easily search for their specific models, items, and brands which not only saves their time but in most of the cases it provides convenience to the customers(O’Rourke & Ringer, 2016). Therefore, citing the above criteria it can be stated that based on user-friendliness and ease of accessibility customers determines their online buying decision.
According to Lim, et al., (2016) the concept of online buying behavior is referred to the process of researching and purchasing the services and the products over the internet. Online buying behavior of the customers also involves online transaction that predominantly comprises of three steps such as process information retrieval, product purchase, and information transfer. Consumers while deciding their online purchasing also considers online transactions where initially they search for information through different websites and compares the product based on their specification. Consumers preferring to purchase through online platforms also search for research articles through a variety of journals and conference proceedings in the field of information search(Chovanová, et al., 2015). Once, the consumers are done through their information search they then transfer the information to their peer groups so that they can also go through the product. The final stage of online transactions is purchasing the product through different modes of transactions so that they can avail of the products and services. Evaluating the theory of reasoned action it has been identified that it refers to the willingness of the consumers towards performing a specific action under a certain situation. The behavior of the consumer is subjected to certain norms that reflect their internal characteristics towards purchasing the products that best suits according to their needs(Paul, et al., 2016). The primary purpose of the theory of reasoned action also helps in understanding the individual’s voluntary behavior by examining the specific behavior of the consumers towards purchasing the products and services. Moreover, evaluating the theory of reasoned action it has been identified that it suggests the purchase intention of the consumers that increases the likelihood of buying the products by the consumers. Based on the opinion of Karimi, et al., (2018) it has been identified that certain factors influence the buying behavior of the consumers such as the home delivery concept that takes the responsibility of delivering the products at the doorsteps of the consumers. The increase in user ability of internet access among the people also increases the chances of consumer buying behavior, technological up-gradation enables the consumers to access a wide array of information that makes it possible for them to compare between the two distinctive products and then make up their purchase decision.
2.3 Stages of the consumer buying process
According to Sudha & Sheena, (2017) consumers before buying any particular products and services goes through various stages which helps them in undertaking decision that helps them to select the best products and services. Problem or need recognition is the first stage of the consumer buying process, in this process the consumers recognize the degree of satisfaction from a certain product and the actual degree of satisfaction that is needed from a product to be brought. During the stage of information search, the consumers collect and gather information from various sources that particularly influence the consumer buying decision process (Diba, et al., 2019). Evaluation of alternatives helps the consumers in finding out alternative products and services by comparing several factors that match up to their expectations. The purchase decision helps the consumers in selecting the products and services that match their needs and buy the product through a particular mode of shopping. Post-purchase behaviour helps in identifying the loyalty of the customers towards the products and services.
The purchasing process among the consumer initiates when they become aware of their need, this awareness among the customers might arise from an internal or external source. The rising awareness of the need motivates the consumers to search for information that fulfills their needs. Once the sources of information are being gathered then the customers evaluate the option of paying particular attention to the attributes that the consumer considers most important. The stages of the consumer buying process include a series of steps that a consumer undertakes in respect of recognition of their wants, choices and post-purchase evaluation. The stages of the consumer buying process are as follows.
Need recognition- The first and foremost stage of consumer purchasing behavior includes identifying the need recognition. Consumers during this stage identify the products and services that most appropriately match up to their expectations. Business organisation also takes advantage of this situation and offers the customers with innovative products and services that satisfy their needs and build long term relationship with them(Ramya & Mohamed Ali, 2016). Identifying needs also becomes important because it helps the marketers to understand the taste and preferences of the customers and design the products and services accordingly.
Information search- During the consumer buying process information search comes at the second stage because before customers take up the final decision of purchasing they compare between the two products based on their specifications and prices. During the information search stage, the consumers also compare the information with that of another online platform in terms of ensuring that they are purchasing good quality products (Ertemel & Ammoura, 2016). Customers also search for information from their friends, families and peer groups and based their feedback they determine their purchasing decision.
Evaluation of alternatives- Once the customers gather all the information related to the products and services then they compare and contrast the products based on their quality, features and satisfaction power. Moreover, it has also been noted that customers in this stage also search for alternative products and services that might be available to them at low price points and of better quality.
Purchase decision- Consumers after evaluating all the information and then evaluating alternative search makes up their purchasing decision. The purchase decision of the consumers rests upon their filtered criteria, which includes price affordability, durability, after-sales services and feedback from the other consumers(Chan, et al., 2017). The online marketer also promotes offers and events concerning attracting the attention of the customers towards the firm and influences their online purchasing decision.
Post-purchase behavior- The post-purchase behavior of the customers includes determining the satisfaction rate of the customers such as if the customers feel happy then they promote the brand to their friends and families. Dissatisfied customers spill negative brand image. Therefore, it becomes important for marketers to evaluate the post-purchase behavior of the customers and keep their satisfaction high for repeat business.
According to Küster, et al., (2016) consumer buying behavior process comprises many criteria such as searching for information, comparing them and then making up their minds to purchase the products and services. It has been noticed that during the consumer buying behavior process the most important stage is the evaluation of alternatives, as because here the consumers search for the best alternative products based on their durability, user-friendliness and price points upon which the consumers decide their purchasing decision. Evaluating the consumer buying behavior process it has been noticed that consumers also go through impulsive purchase behavior, where it has been noticed that consumers sometimes purchase products and services based on their basic instinct(Chokenukul, et al., 2018). Evaluating the purchasing buying behavior of the consumers it has been noticed that consumer buying behavior is mainly determined by the level of involvement during their purchasing decision along with their importance and intensity of their interest towards a particular product that matches up to their expectations. The process also involves the buyer’s level of motivation where it has been identified that what motivational factors influence the need recognition of the consumers. Furthermore, it has been noticed that consumer buying behavior also comprises of programmed behavior which indicates that buying low involvement frequently purchased low-cost items that state about the purchasing decision of the consumers. Besides, evaluating the limited decision making it has been noticed that it involves buying products occasionally, where the consumers try to obtain information about the particular brand that they are willing to purchase(Kanagal, 2016). During this stage, the consumers take time to search for information where they gather information from various sources such as articles, books, and web sources. Evaluating the consumer buying process it has been identified that while making purchase decision two factors affect it predominantly which comprises personal, psychological and social. The personal factors that affect consumer purchasing behavior include deciding what products they need the most and what specific sources of characteristics they are looking for in the product. The psychological factors of consumer buying behavior comprise of Maslow’s hierarchy of needs where they search for the motivational factor that influences them to purchase the product.
2.4 Internal factors influencing the online purchasing behaviour of consumers
According to Chan, et al., (2017) online purchasing behaviour among the consumers are highly influenced by the internal factors that successfully reflect the personal traits along with the experiences of the customers in terms of their decision-making process. Internal factors mainly comprise of ease of use, which indicates that online business firm provides a wide range of products and services to the customers which helps them to meet the expectation level of the consumers. Personal traits of the customers also play a vital part as because if the consumers are satisfied with the products and services they are most likely to do repeat purchase with the online e-retail firm(Ramya & Mohamed Ali, 2016). Furthermore, an internal factor also comprises of time management which helps the consumers in saving their time while shopping from an online platform that was not possible in offline shopping methods.
The internal factor that influences the online purchasing behavior of consumers includes ease of use. According to Narula & Desore, (2016)E-commerce business platform provides a wide range of information to the customers which enables them to select the best available products for their usage. The availability of accessing information and then determining purchasing decisions enables the customers to enjoy the best products and services. Furthermore, the ease of making payment options trough online transactions has also made it easier for the customers to purchase through an online platform and make pay hassle-free. The internal factors that influence the buying behavior of the customers also include their perception such as customers’ own choice, attitude, and belief which indicates their perception towards the products and services(Prakash, 2016). Being with the trends also acts as an internal factor that influences the behavior of the customers, such as customers prefers to buy from the latest products and services that successfully meet their satisfaction and enthralls their expectation. Moreover, another notable factor that influences the online purchasing behavior of the customers includes time management as because customers most likely prefer to purchase the product that is easily available within the market. The online platform enables the customers to save time because customers choose their products and pay through the online payment option that only saves time but it also saves money for the customers(Zhang & Benyoucef, 2016). Moreover, the notable features of the online platform are that it provides the opportunity for the customers to compare and contrast the products based on their price and specification. Therefore, based on these qualities it influences the online purchasing decision of the customers.
The internal factors have affected the decision-making process of business which has been justified through the application of the psychoanalytic theory of customer buying behavior(Al-Bakri & Katsioloudes, 2015). The application of psychoanalytic theory has been demonstrated through internal factors which are ID, ego, and superego of the human being. The urge and primary driving forces for the psychoanalytic theory have been operated which has restricted tension and provide pleasure(Nguyen, et al., 2018). The application of the unconscious mind in terms of choosing any particular brand for a selected product or service has also been considered by the marketers for gaining the concern of most of the customers. On the other hand, the ego is considered as the state of the conscious mind which has been operated via the reality principles.
The ego has mainly been developed from ID as the operation of ID has been applied in the real world. The component comprises of the factors which are thoughts, perceptions, feelings, and memories(Rothenberg & Matthews, 2017). The factors have provided the person with an identity and continuity sensor. The executive perspective of personality has been indicated through the ego of the individual. The products with maintaining high quality and justified pricing assist the business to enhance their customer base(Zhang & Benyoucef, 2016). The essential or most sold products or services of the firm need to be showcased on the homepage for gaining the concern of new customers to choose the product.
Super-ego refers to the ethical and moral dimension of the psychological structure of human beings. The psychological aspect of the human being is considered by the marketers for delivering the services. The simplification in the transaction system and payment processes such as EMI and loans help the users to avail of the service(Chan, et al., 2017). The social influence of social pressure for buying any products has been accomplished through the super-ego of the psychoanalytic theory. The companies have also addressed public relations campaigns for being involved with the customers. Customer engagement has also assisted the business to increase its brand image and legacy for flourishing their regular process(O’Rourke & Ringer, 2016). The benefits of online shopping have transformed the buying behavior among the customers because they allow them to browse through the entire range of products and services that are offered by e-vendors(Martínez-López, et al., 2013). During the stage of information search, the consumers collect and gather information from various sources that particularly influence the consumer buying decision process. The application of different promotional techniques also assists the individual to gain the attention of the customers in a higher order.
In India, online businesses have expanded in all sectors such as retail, clothing, food and another sector. Amazon and Flipkart are considered as the leading E-commerce businesses which have operated for more than 10 years. Flipkart has arranged big billion days once a year where the attractive discounts are offered to the customers. It helped the business to gain popularity among millennials and expanded its operation in the rural areas also(Chan, et al., 2017). Flipkart has set its target to reach the sales volume of $10 billion in 2019 during the big billion days which has reflected the diversified span of operation (Eom & Seock, 2017). On the other hand, Amazon had also offered the Great Indian Festival where the products and services are offered at a cheaper price for three or four days. It will help to gain the attention of most of the citizens and raise the sales volume also(Kumar & Ghodeswar, 2015). The businesses have focused on the spending pattern of customers which would provide them an opportunity to analyze their demands trends.
2.4 External factors influencing the online purchasing behavior of consumers
As stated by Al-Bakri & Katsioloudes, (2015) external factors are mostly controlled by the nature of the product or services, the external factors that influence the purchasing behavior of the online customers comprise of service quality. Service quality helps the customers to determine whether the products and services fulfill the customer’s taste and preferences. The quality of the services also increases the customer’s satisfaction and earns their loyalty towards the firm. The easy payment option also influences the online purchase decision of consumers because it provides flexibility to provide easy EMI options, COD and online transactions that are both reliable and trustworthy(Aithal, 2015). Ease of accessibility also helps the consumers in searching for a wide range of products and services that matches their expectations and improve the service cycle of the online business firm.
As opined by Parsons, Maclaran, & Chatzidakis, (2017) external factors also play a crucial part in terms of influencing online purchasing behavior among customers. Service quality is one of the crucial external factors that influence the behavior of the customers because based on the service quality of the products and services customers determine their purchasing capability. Better quality of products and services attracts the attention of the customers towards the online platform and influences their online purchasing behavior. Poor quality of products and services decreases the chances of profitability along with the low turnover of customers towards the online platform. Ease of payment option has also influenced the purchasing behavior of the customers towards the online platform as because customers can pay easily with security from advanced technology that uplifts the trust of the customers towards the online platform and builds long term relationships with them(Stephen, 2016). The ease of payment option has also made it easier for the customers to add their most favorite item in the cart list so that customers can pay up later in easy monthly installment. External factors also include easy accessibility of extracting information in regards to having information about the latest product release and trends that mostly attracts the attention of the customers towards the online platform. SEO has made it easier for the customers to search for items with just typing keywords that provide the customers with the flexibility of accessing information at just fingertip(Hofacker, et al., 2016). Finally, reviews of customers also help prospective customers to purchase products and or services and spread word of mouth marketing for the brand. Therefore, based on the above facts it can be stated that external factors affect the online purchasing behavior of the customers.
The external factors for influencing customer buying behavior have been analyzed by utilizing the theoretical approach of the Veblenian socio-psychological model. It mainly focuses on the external factors which have influenced the characteristics of the human being for choosing particular products or services(Bouzenita & Boulanouar, 2016). The factors are considered as income level, social class, sub-culture, culture, the influence of family and reference group. Social class has changed the decision making of any user for choosing any particular product from the digital medium (Yoo & Park, 2016). The people from the different social background has a diversified range of choice and the product or service category must be justified with the requirement of a particular brand. In India, almost all the social class citizens have preferred shopping over the digital medium due to cost-effectiveness and quality service deliverables (Voramontri & Klieb, 2018). So, the business has also started in the introduction of its digital business platform. For example, Prada is an online fashion retailer that has established its physical and online store in 2018 and the business over digital medium has found to be profitable.
The income level of the citizens has also affected the business process as the price for the products or services has varied over the quality of the products(Bouzenita & Boulanouar, 2016). The marketers have applied diversified tools and techniques for targeting the high-income citizens to grab their attention for availing the products or services. For example, Facebook’s ad tool has been utilized for defining the target market segment according to having a frequency in accessing different software (Harrigan & Commons, 2015). The housing communities or the residential citizens along with the business executives has accessed the advertisement over a digital medium which is beneficial from the perspective of the business. The E-commerce websites have utilized Elitify.com for targeting the higher income group to gain the concern of human beings.
The cultural background of the customers has been considered an important factor for providing effective service to customers. India is a democratic country where different group of people has reside correspondingly and the culture or lifestyle has differed as the main characteristics of the country is unity in diversity (Gbededo & Liyanage, 2018). The marketers have enforced their strategy by offering the services according to the requirement. For example, Zomato is considered as the food delivery application which has introduced the delivery of halal food and non-vegetarian food all over the citizens. So, the marketers have changed their business strategy according to the preference of customers (Bouzenita & Boulanouar, 2016). In India, language and religion are considered as the main factors for dividing the state which has reflected the requirement of applying regional language in the promotional content for making the brand attractive to most of the citizens.
The influence of family members has also been demonstrated as an important factor for changing the product and service dimension as the choice and needs have changed concerning different family backgrounds(Parsons, et al., 2017). As an example, health insurance companies have focused on the lifecycle stage of the individual as parenthood and marital status are also verified for changing the products or service dimension (Lantos, 2015). The reference group of the individual has affected the decision-making pattern of customers by applying information utility and value expression. The increase in maximum public consumption for any particular product or service has helped the business to maximize the sales volume by modifying the same(Ramya & Mohamed Ali, 2016). In the ear of social media, the trends and demands of the customers have changed rapidly which has become the concern for the marketers to deliver the product in that direction for maximizing the revenue in business.
The research aims to evaluate the impact of internal and external factors influencing the online purchasing behavior of consumers in India. The overall section of the literature review section was based upon the objectives of the study that was laid down in the initial section of the research. While performing the study, the observer has identified that certain research gaps were recognized in the study. Evaluating the study it has been noticed that the sources of information which were gathered from the secondary sources were not enough to come down to the conclusion of evaluating the internal and external factors influencing the online purchasing behavior of the consumers in India. Furthermore, the exact influence of the online purchasing behavior of consumers cannot be graphed. Henceforth, these are certain gaps that will be met in the following course of completing the study.
Based on the above study, it has been summarised that online business has emerged very rapidly due to delivering comfort and satisfaction in terms of fulfilling the business process. The online buying behavior of the customers includes three most crucial criteria which include process information, information transfer and purchasing product. The advent of the online marketplace has helped the customers in accessing information within no time. The behavior of the customers has also changed as the diversified range of options has become available for the customers to choose from. The purchase decision helps the consumers in selecting the products and services that match their needs and buy the product through a particular mode of shopping. Post-purchase behavior helps in identifying the loyalty of the customers towards the products and services. Service quality is one of the crucial external factors that influence the behavior of the customers because based on the service quality of the products and services customers determine their purchasing capability.
Chapter 3: Research methodology
Research methodology plays a vital and essential part of the research study because it helps in systematically evaluating the topic. The researcher in the section of research methodology considers essential research methods that comprise of research philosophy, research approach, research philosophy, research strategy, data collection, and data analysis section (Kumar, 2019). Furthermore, as the study progress, it will discuss the sampling technique that is mostly used to collect and analyse the data, where the first and foremost section highlights the purpose of the study.The undertaken research methods are followed by appropriate justification to achieve the objectives of the study that is to evaluate the impact of internal and external factors influencing the online purchasing behavior of consumers in India.
During the introductory chapter of the study, the researcher has focused on achieving the objectives of the research. As, the researcher has considered different research methods along with data collection and data analysis, proper validation of the undertaken research has been presented. While carrying out the task the researcher has found out a series of issues that restrict the observer in effectively conducting this research. Henceforth, the accessibility issues have also been presented along with ethical considerations that have been followed in the process of conducting the research.
The research purpose is considered as beneficial in terms of identifying the major aspects along with the conclusion of the study by achieving the objectives of the study that has been set out in the initial phase of the study. Furthermore, the research purpose is also essential because it helps the observer in answering the specific questions as to why the study has been initiated and what is its outcome(Trainor & Leko, 2014).Moreover, the determination of the research purpose also enables the researcher in presenting the study in an enhanced quality that should not reflect the personal intellects but should be presented with utmost authenticity.
Justification
The purpose of the research also helps in retaining the quality along with completing the research. The primary aim of the researcher in the study is to determine the online purchasing behavior of consumers in India. The objectives that have been set out in the initial phase of the study benefits the observer in maintaining the quality of the study by providing a particular attribute that would assist the researcher in completing the study effectively.
- To determine the concept of online buying behavior
- To evaluate the consumer buying process
- To determine the internal factors influencing the online purchasing behavior of consumers
- To determine the external factors influencing the online purchasing behavior of consumers
The research philosophy is considered as an integral component of the research methodology as it helps the observer in facilitating by providing a reflection of the viewpoint of the researcher. Evaluating the research philosophy it has been identified that the identification of sources along with the nature of information benefits the observer in developing subsequent information that helps in completing the study successfully.Based on the research onion, it has been identified that the use of research philosophy is to reflect its faith of the observer with the selected source of the data collection method. The main attribute of research philosophy is to identify the research objectives which leads to evaluate various facts. The research philosophy can be categorized into four types, pragmatism, positivism, realism and interpretivism(Saunders, 2011). Positivism philosophy is based upon evaluating the factual information that is mostly collected from reliable sources. Contradictory to it, interpretivism philosophy in the research process involves the interpretation process that is linked with the elements of the study concerning formulating an appropriate conclusion.
Justification
The researcher has taken up the decision of carrying out positivism philosophy in this research study because it helps the researcher in conducting the study in an improved quality to maintain the validity of the research. Furthermore, the observer has also taken up the decision of using positivism philosophy because it helps in meeting the objectives of the study without being facing any trouble. The positivism philosophy also helps in changing the course of the study such as identifying the internal and external factors influencing the online purchasing behavior of people in India. Moreover, it has also been identified that there is no human interference while carrying out the study, which helps in conducting the research efficiently. Undertaking positivism philosophy also helps the observer in forming a correlation between the related elements in relation to the research topic which is to access the impact of external and internal factors on the purchasing behaviour of the consumers.
The research approach in the research study aids the observer in identifying the progress pattern of the study that benefits in systematically completing the study. The research approach can mainly be categorized into inductive research and deductive research. Inductive research involves identifying and searching the pattern from the development along with the observations of the elements and the explanations(Bryman, 2012). While considering the inductive approach there is no presence of any hypothesis and hence it allows the researcher in changing the course of direction for the research. Whereas, on the other hand, the main purpose of deductive research is to develop the hypothesis during the beginning of the study. In this research, the observer has considered an inductive research approach that allows the researcher in conducting this research inefficient manner.
Justification
Identifying the research study has been identified that there is no relationship between the variables of the study, the variables include the impact of internal and external factors and the online behavior of people. Therefore, the observer has undertaken a research approach to establish a relationship between the two variables which assist the observer in conducting this research inconclusive manner. Therefore the adaptation of the research approach has been an essential tool in regards to systematically completing the study.Inductive research approach also aims towards generating meanings from the datasets that has been collected in terms of identifying the relationships and patterns to formulate the research questions that is to be explored. The observer has undertaken inductive research approach as it refers to the bottom-up approach, in which the researcher uses observations to build an abstractions or to develop a phenomenon that is to be studied by the observer which in this research includes external and internal factors that influences the buying behaviour of the consumers. Therefore, in this research the observer has considered inductive research approach in terms of carrying out this research in a systematic manner.
Research design in the research methodology section is termed as the general plan which mainly describes the steps that are being taken to answer the research questions. The process of research design is also referred to as the collection of methods that are being mainly chosen to complete the study efficiently. The observer with the assistance of the research design helps him in carrying out the study and performing more appropriately to determine research results(Mackey & Gass, 2015).Research design can be divided into three parts such as descriptive design, exploratory design, and explanatory design. In this research study, an exploratory research design has been considered in respect of evaluating the variables of the study.
Justification
The observer has considered exploratory research design which benefits the observer in identifying and exploring new elements of the study. Furthermore, with the assistance of the exploratory research design, a specific aspect of the study has been explored which comprises evaluating internal and external factors influencing the purchase behavior of the people. The research design also reflects the reliability and accurate knowledge about evaluating the internal and external factors that influence the online behavior of the customers. Moreover, with the assistance of the exploratory research design, the observer was able to give the study a specific direction that benefits in efficiently conducting the study.
The research strategy is considered as one of the most essential parts in the research methodology, the process of the research strategy are being used by the observer in terms of completing the study in a given time frame. During the process of research strategy, it also becomes essential for the observer to arrange all the required resources to construct an appropriate research strategy(Martínez-López, et al., 2013).Furthermore, it also becomes necessary to ensure that the research approach that has been considered is appropriate which benefits in conducting the research effectively. The process of research strategy involves selecting the research philosophy, research design, and research approach. Moreover, based on the selection of the research methods, data collection and sampling are being carved out. Therefore, with the help of an appropriate research strategy, it benefits the observer in conducting the study inconclusive manner.
Justification
The research study is based on evaluating the impact of internal and external factors influencing the online purchasing behavior of consumers in India. The observer has constructed a proper strategy that benefits them in completing the study in an effective and organized manner. To conduct this research, the researcher has considered a mixed-method approach that reflects both primary and secondary data for the research study. In regards to conducting the primary data, the researcher has undertaken questionnaires and interviews that have been adopted regarding acquiring relevant knowledge for the study.
The observer has considered both primary and secondary data to carry out the research study. To conduct the research study, secondary data has been gathered from different sources which mainly comprises articles, books, websites, journals and surveys(Lewis, 2015).The analysis of secondary data sources provides effectual knowledge about the impact of internal and external factors influencing the online purchasing behavior of customers. Based on the gathered secondary sources of data literature review section has been constructed. The observer while accumulating secondary sources has taken special attention where no unscrupulous publications of books or journals were not used(Maxwell, 2012).The observer has only considered authentic publications houses or institutions books and journals were only used. Moreover, the websites that have been used were also authentic. Whereas, in terms of primary data, the observer has gathered information from customers who mostly prefer to purchase from the online platform. The questions were sent via e-mails to the customers, regarding gathering their information which was used to analyse the research study. There was also another source of primary data, this was collected from the managers of online shopping platform. 3 managers were chosen in regards to the interview process, where the answers were recorded with their prior permission. The same set of questions open-ended semi-structured was asked to each of the 3 managers.
Data analysis is referred to as the process of data utilizing the logical and analytical reasoning in terms of examining each component among the data provided by the means of the research process(Blair & Blair, 2014). MS Excel was used to represent the quantitative data statistically, the different relations among the various variables were shown in that manner. Moreover, graphs were also illustrated to show up the relationships. Whereas qualitative data was mainly driven from the explanations of the managers, during the data analysis part, interpretations were made from the different parts of the data. Moreover, secondary data analysis was also used to perform the literature review section.
The secondary sources of information that has been gathered from books, journals, internet sources and websites were used for constructing the literature review section. Furthermore, the qualitative data were also used for the purpose of identifying themes and codes for the purpose of extracting information. It has been identified that the themes and codes were used for the purpose of thematic analysis where on basis of the themes and codes results were driven to make the study successful. Considering both primary and secondary data in this research has benefited the researcher in extracting information that benefits the observer in laying down a systematic and conclusive research study.
The sampling was mainly performed on the customers of the online platform because it helped the observer in gathering their feedbacks and performing the research study. Initially, during the research study, 100 customers were being selected, but in reality, it is not feasible to conduct the survey questionnaire due to much practical reason. Therefore, in terms of collecting the data from the customer’s questionnaire in the form of a survey will be carried out on 80 customers. It was the probabilistic sampling method and all the members of the universe had an equal opportunity of being selected in the sample(Emmel, 2013). Owing to the same reason 3 managers and 80 customers were considered to perform the research study.
Random samples were being considered in this research, the members all had equal chances of getting selected in the sample. Therefore, the research process was expected to fetch similar replies if performed repeatedly over the same number of members. Therefore, in this manner, the observer had successfully maintained reliability in the research process(Salkind, 2012).
A test is valid only when it is supposed to perform the activities that measure the results of the outcome. In the present case, the literature review has focused on the research aim, objectives and questions. Furthermore, the primary research questions were also been designed keeping in mind the research topic and the research objectives. Thus the research study was designed in a way that was suitable to bring out the truth on the issue, in that way the research was valid.
The accessibility issues that the research observer has faced during performing this research are getting out permission in terms of performing the survey. An acquaintance was working in the online marketplace who arranged for the interview with the HR head of the firm. The HR head of the firm then arranged for the interview process with the customers. Therefore, the arrangement of the interview process has helped in interviewing the customers and determine the results that help in performing the study successfully(Karlsson, et al., 2015).Therefore, resolving the accessibility issue helps the observer in performing the study systematically and conclusively.
All the participants that have participated in the questionnaire and interview process have praised about the objectives of the research, the managers were also informed about the interview responses that would be recorded. Any of the respondents are free to withdraw themselves at any point during the questionnaire or the interview process without citing any reason what so ever(Wiles, 2012).The observer has also maintained the ethics of not asking any personal or undue questions to the respondents. Furthermore, during the research study, the researcher also maintains the anonymity of maintaining the demographics of the respondents which were completely kept confidential. Finally, once the interview has been performed then all the recordings were to be destroyed in respect of maintaining the anonymity of the study.
The limitation that is associated with the research study is that it took place in the online platform, without being considering any particular company. If the research could have been performed in one particular company then it would have been possible to perform the study successfully(Shipman, 2014). Furthermore, the researcher has also observed that there are also budget constraints that are associated with the research study, had there not been any budget constraints then the research study could have been made very successful. Therefore, if the observer successfully resolves the limitations than it would have been possible for the researcher in performing the study successfully.
The chapter of research methodology is one of the most essential components that help in completing the study. With the adaptation of the research methods, proper justifications have also been followed which helps in completing the study successfully. The research purpose will be identified in the initial stage of the study in terms of meeting the objectives of the study. This research is based on evaluating the impact of internal and external factors influencing the online purchasing behavior of consumers in India.Positivism philosophy will be taken under consideration which will help the observer in meeting the objectives without any hindrances. Positivism philosophy will also help in understanding consumer purchasing behavior. The inductive research approach will be considered because there is no relationship between the variables such as the impact of internal and external factors and influencing the purchasing behavior among consumers.The mixed research approach will be considered where both primary and secondary data will be collected and analysed in terms of determining results for the research study. In terms of collecting the data from the customer’s questionnaire in the form of a survey will be carried out on 80 customers. Whereas, the secondary data will be collected from books, journals, and news articles. MS Excel, graphs and charts will be used to evaluate the primary data analysis, whereas thematic analysis will be used in terms of determining secondary analysis.
Chapter 4: Data analysis and interpretations
In the current chapter, the data collected from the surveys and interviews have been presented. The chapter has been divided into two main segments, the qualitative and the quantitative segments. The quantitative analyses comprises of descriptive and inferential analyses where the analyses were presented in graphical and tabular format(Parkin, et al., 2016). In addition, Cronbach reliability tests findings have also been presented for the quantitative data analysis.The qualitative section comprises of themes and statements gathered from the interviews of the managers of 3 online shopping platforms were presented thematically. The main aim of the chapter is to present the findings from the data analyses and address the research questions of the study.
In this section of the chapter, the descriptive presentation of the demographic profile and general background of the respondents has been presented forconsumers from the online clothing retail has been assessed and presented. The findings have been presented in the form of graphs and text. The section comprises of two main sections, the demographic part and the general background.
4.2.1.1 Demographic profile
In fig 1, the sample participants constituted 66.3% of the respondents being female and 33.7% being female. Thus, the sample size of the current study is considered to be biased as females hold more positions asconsumers of online shopping and purchases.This may implicate that more female customers tend to buy clothes from online sources than male.It may also implicate that more female customers were confident with participation for the survey over male. With respect to the age-based distribution, as shown in figure 1 below, the age group of 18 to 24 years constituted 26% of the male and female consumers, age group 25 to 34 years constituted 39% of the respondents and the age group of 35 to 54 years constituted 24% of the respondents. Hence, it is seen that the maximum respondents were from the age group 25-34 years and a higher number of respondents between the ages of 25 to 34 years indicate that majority of the online consumers are young and middle-agedmale and female.This is indicative from the fact that maximum number of respondents is from the statistics that over 50% of the respondents are either employees of private or public firms. Only 16% of the respondents are students, whereas 12% are self employed. Lastly, it was also found that 52% of the participants in the study currently have a graduate or post graduation degree, followed by 21% with a diploma/certificate degree and 15% with high school students.
Figure 1: Demographic distribution
4.2.1.2 General Background profile
In this section, the customers were queried about their intention and reason for choosing online modes of purchase. It was found that more than 50% of the participants in the survey purchase multiple times a year and not specific to weekly or monthly basis. However, 21% of the customers also purchase multiple times a month and only 9% purchase weekly or on a daily basis. This clearly indicates that majority of the purchases are made on special occasions in contrast to the reason for purchase presented in fig 3.It was also seen that majority of the consumers in the survey prefers online purchase over store visits under normal circumstances. 70% of the participants believe in choosing online modes, however, 8% denies indicating that only under urgency they choose online options for purchase. Similarly, based on the current findings, the participants were asked about the type of source used for online purchase. It was found that majority uses e-tail websites (41%), mobile applications (36%), and social media applications (16%). This is indicative from previous studies where researchers found similar implications stating dependency on online sources for purchase of products and services(Farhana, et al., 2017).
Figure 2: General background frequency distribution
In figure 3, the reasons for choosing the online sources were queried. It was found that the most important reason was offers and promotions (n=19), followed by festive season (n=15), and social media influences (n=13). These comprised the highest chosen reasons and the only reason that majority of the consumers purchase online multiple times yearly and on special occasions only. Interestingly, it was also found that, there were 4% of the population that indicated that there was no reason for their choice of online purchase. Other choices include availability of quality products, innovative web platforms, ease of payment and peer and family. Further these may be classified as internal and external factors and shows similar implications from previous studies (Virvilaitė, et al., 2011). Fig 3 also indicates that both internal factors and external factors have equal amount of impact on choice of online purchase.
Figure 3: Frequency distribution for reasons of choosing online modes
Reliability means consistency in a concept measured again and again. In other words, reliability shows if the empirical data or non-empirical data collected show relevance to the study and are interconnected between each individual variable (Melchers & Beck, 2018).The Cronbach alpha was employed to ensure the reliability of the quantitative questionnaire, which helped measure the internal consistency and relevance of different constructs in measuring the concerned scenario. In this regard, to find the reliability of the responses filled by the participants was done using the Cronbach reliability test (table 1). The Cronbach’s alpha value for the independent variables were found to be .870 for internal factors and .880 for external factors indicating a high reliability of the responses collected. It also indicated that with internal and external factors, the perspectives and the intentions of the participants for online purchase is affected.
Table 1: Reliability test
| Reliability Statistics | ||
| Factors | Cronbach’s Alpha | N of Items |
| Internal | .870 | 10 |
| External | .880 | 9 |
The study on the basis of the formation of the study aims and objectives has 2 main hypotheses. The following sections present the correlation and regression values for addressing the hypothesis of the study. The hypotheses are;
H01: The internal factors have no significant impact on customer’s choice for online purchase.
H02: The external factors have no significant impact on customer’s choice for inline purchase.
In this section, the Pearson correlation was conducted between the internal factors of online shopping impacting customer choice. These correlation coefficients were used to understand the degree of the linear relationship between the dependent and the independent variable (Yue & Wahab, 2017). In this case the dependent variable is customer choice and the independent variables are the perceived internal factors of online stores. There are 10 independent variables in this model. The p-value for all of the independent variables in less than 0.05 which exhibits that the results are significant at 95% confidence interval. This implicates that all the independent variables would be considered in the analysis. Based on the findings of the correlation analysis it was found that there is a positive relationship between social factors of online purchase and customer perspectives. This means when there is an increase in online purchase factorialaspects, the customer responses towards the choice of online stores increase. In other words, rise in internal factors of online purchasesincreases the customer perspectives and the customers easily choose the products provided by the online stores. For instance, the relationship between applications and websites are easy to use and availability of different types of products is positive at 95% CI indicating that with rise in easy to use improves the perspectives of the customers that different types of products are available. Similarly, online purchase allows comparison for best buy has a positive relationship with products provide information enabling decision making. Again, online purchase is cost effective impacts user experience of application and websites.
Table 2: Correlation test
| Applications and websites are easy to use | Availability of different types of products | Products provide information enabling decision making | Easy to make payments | Your own choice of products and services | You used the product, service or brand earlier | Online purchase is cost effective | Online purchase is a time saver | Online purchase allows comparison for best buy | User experience of application and websites | ||
| Applications and websites are easy to use | Pearson Correlation | 1 | .454** | .332** | .343** | .459** | .373** | .279* | .392** | .336** | .280* |
| Sig. (2-tailed) | .000 | .003 | .002 | .000 | .001 | .012 | .000 | .002 | .012 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Availability of different types of products | Pearson Correlation | .454** | 1 | .312** | .297** | .377** | .366** | .221* | .154 | .259* | .006 |
| Sig. (2-tailed) | .000 | .005 | .008 | .001 | .001 | .049 | .172 | .020 | .955 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Products provide information enabling decision making | Pearson Correlation | .332** | .312** | 1 | .568** | .613** | .640** | .473** | .578** | .518** | .354** |
| Sig. (2-tailed) | .003 | .005 | .000 | .000 | .000 | .000 | .000 | .000 | .001 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Easy to make payments | Pearson Correlation | .343** | .297** | .568** | 1 | .479** | .531** | .432** | .339** | .476** | .381** |
| Sig. (2-tailed) | .002 | .008 | .000 | .000 | .000 | .000 | .002 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Your own choice of products and services | Pearson Correlation | .459** | .377** | .613** | .479** | 1 | .740** | .464** | .450** | .464** | .387** |
| Sig. (2-tailed) | .000 | .001 | .000 | .000 | .000 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| You used the product, service or brand earlier | Pearson Correlation | .373** | .366** | .640** | .531** | .740** | 1 | .466** | .469** | .453** | .434** |
| Sig. (2-tailed) | .001 | .001 | .000 | .000 | .000 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Online purchase is cost effective | Pearson Correlation | .279* | .221* | .473** | .432** | .464** | .466** | 1 | .449** | .464** | .355** |
| Sig. (2-tailed) | .012 | .049 | .000 | .000 | .000 | .000 | .000 | .000 | .001 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Online purchase is a time saver | Pearson Correlation | .392** | .154 | .578** | .339** | .450** | .469** | .449** | 1 | .407** | .459** |
| Sig. (2-tailed) | .000 | .172 | .000 | .002 | .000 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Online purchase allows comparison for best buy | Pearson Correlation | .336** | .259* | .518** | .476** | .464** | .453** | .464** | .407** | 1 | .480** |
| Sig. (2-tailed) | .002 | .020 | .000 | .000 | .000 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| User experience of application and websites | Pearson Correlation | .280* | .006 | .354** | .381** | .387** | .434** | .355** | .459** | .480** | 1 |
| Sig. (2-tailed) | .012 | .955 | .001 | .000 | .000 | .000 | .001 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| **. Correlation is significant at the 0.01 level (2-tailed). | |||||||||||
| *. Correlation is significant at the 0.05 level (2-tailed). | |||||||||||
Now, the regression and ANOVA findings are presented. R Squared (0.842) and Adjusted R Square (0.819) values are higher than the standardized values set at 0.5. The R Squared value indicates that approximately 84% of the variations in the model can be explained by the model’s input, that is, almost 84% of the variation in the dependent variable is contributed by the independent variables. This is because 81% of the responses lie close to the regression line and a high chance that the hypothesis is accepted. Further, the regression model was found to be fit with adjusted R square value = 0.819, at Sig = .000, and F = 36.827, indicating medium capability of the model to explain the similar phenomenon. The value of R-square indicates that the model is capable of explaining 81.9% of the variation by the independent variables. However, the comparatively lower values of this model means that there are certain other factors that have a greater impact on the profitability of the organization and therefore, those factors need to be identified to obtain robust models.The value of adjusted R square implicates that almost 81% of the respondents feel that the perceived consumer choice for online purchases are impacted by internal factors.
Table 3: ANOVA test
| ANOVA | ||||||||||
| Model | R | R Square | Adjusted R Square | Std. Error of the Estimate | ||||||
| 1 | .918a | .842 | .819 | .252 | ||||||
| a. Predictors: (Constant), User experience of application and websites , Availability of different types of products, Online purchase is cost effective, Applications and websites are easy to use, Easy to make payments, Online purchase is a time saver, Online purchase allows comparison for best buy, Your own choice of products and services, Products provide information enabling decision making, You used the product, service or brand earlier | ||||||||||
| Model | Sum of Squares | df | Mean Square | F | Sig. | |||||
| 1 | Regression | 23.413 | 10 | 2.341 | 36.827 | .000b | ||||
| Residual | 4.387 | 69 | .064 | |||||||
| Total | 27.800 | 79 | ||||||||
| a. Dependent Variable: Dependent Internal factors | ||||||||||
| b. Predictors: (Constant), User experience of application and websites , Availability of different types of products, Online purchase is cost effective, Applications and websites are easy to use, Easy to make payments, Online purchase is a time saver, Online purchase allows comparison for best buy, Your own choice of products and services, Products provide information enabling decision making, You used the product, service or brand earlier | ||||||||||
The independent variables of the model are, User experience of application and websites, Availability of different types of products, Online purchase is cost effective, Applications and websites are easy to use, Easy to make payments, Online purchase is a time saver, Online purchase allows comparison for best buy, Your own choice of products and services, Products provide information enabling decision making, and You used the product, service or brand earlier. Based on the findings of the coefficient of regression, coefficients that are significant in the table below are Applications and websites are easy to use, Your own choice of products and services, You used the product, service or brand earlier, Online purchase is a time saver, Online purchase allows comparison for best buyare significant as they have p-value is less than 0.05 i.e. p value<0.05. Out of the 10 independent factors that impact customer responses, 5 were found to have a significant impact and mentioned. Thus, the current study finds that the hypothesis is accepted as 5 of the variable shave p<0.05. Therefore, the hypothesis internal factors have significant impact on customer’s choice for online purchase. In other words, the customers perceive that internal factors impact their choice of online purchase. Thus the null hypothesis is rejected.
Table 4: Regression test
| Coefficients | ||||||
| Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||
| B | Std. Error | Beta | ||||
| Applications and websites are easy to use | .099 | .041 | .145 | 2.399 | .019 | |
| Availability of different types of products | .038 | .033 | .067 | 1.153 | .253 | |
| Products provide information enabling decision making | .060 | .057 | .081 | 1.064 | .291 | |
| Easy to make payments | .066 | .044 | .094 | 1.482 | .143 | |
| Your own choice of products and services | .130 | .057 | .176 | 2.270 | .026 | |
| You used the product, service or brand earlier | .125 | .059 | .168 | 2.109 | .039 | |
| Online purchase is cost effective | -.007 | .039 | -.011 | -.186 | .853 | |
| Online purchase is a time saver | .186 | .049 | .247 | 3.766 | .000 | |
| Online purchase allows comparison for best buy | .186 | .044 | .267 | 4.210 | .000 | |
| User experience of application and websites | .031 | .047 | .041 | .659 | .512 | |
| a. Dependent Variable: Dependent Internal factors | ||||||
In this section, the Pearson correlation was conducted for the external factors of online shopping impacting customer choice. In this case the dependent variable is customer perspectives for online purchase and the independent variables are the perceived external factors. There are 9 independent variables in this model. The p-value for all of the independent variables in less than 0.05 which exhibits that the results are significant at a 95% confidence interval. Based on the current findings it is seen that there is a positive and strong relationship between external factors of online shopping and choice of customers. This implicates that all the independent variables would be considered in the analysis. Based on the findings of the correlation analysis the Pearson value was more than .4 and significant at p<0.05. This means when there is an increase in external factors; the customer’s perspectives for online purchase increase. For instance, with rise in service quality provided by the e-retail improves product and convenience risk, and good consumer policies like easy and free returns, refund policies etc impacts the perspectives of increase in availability of multiple e-retail applications and websites. Again, website content and marketing methods by e-retails has positive relationship with service quality provided by the e-retail.
Table 5: Correlation test
| The service quality provided by the e-retail | Product and convenience risk | Home delivery of products | Good consumer policies like easy and free returns, refund policies etc | Good customer relationship systems | Availability of new products round the year | Influence by friends and family | Availability of multiple e-retail applications and websites | Website content and marketing methods by e-retails | ||
| The service quality provided by the e-retail | Pearson Correlation | 1 | .428** | .369** | .564** | .402** | .482** | .389** | .509** | .507** |
| Sig. (2-tailed) | .000 | .001 | .000 | .000 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Product and convenience risk | Pearson Correlation | .428** | 1 | .409** | .370** | .245* | .418** | .431** | .390** | .211 |
| Sig. (2-tailed) | .000 | .000 | .001 | .029 | .000 | .000 | .000 | .060 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Home delivery of products | Pearson Correlation | .369** | .409** | 1 | .465** | .622** | .543** | .366** | .385** | .414** |
| Sig. (2-tailed) | .001 | .000 | .000 | .000 | .000 | .001 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Good consumer policies like easy and free returns, refund policies etc | Pearson Correlation | .564** | .370** | .465** | 1 | .421** | .528** | .328** | .310** | .523** |
| Sig. (2-tailed) | .000 | .001 | .000 | .000 | .000 | .003 | .005 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Good customer relationship systems | Pearson Correlation | .402** | .245* | .622** | .421** | 1 | .692** | .426** | .529** | .573** |
| Sig. (2-tailed) | .000 | .029 | .000 | .000 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Availability of new products round the year | Pearson Correlation | .482** | .418** | .543** | .528** | .692** | 1 | .418** | .598** | .514** |
| Sig. (2-tailed) | .000 | .000 | .000 | .000 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Influence by friends and family | Pearson Correlation | .389** | .431** | .366** | .328** | .426** | .418** | 1 | .489** | .434** |
| Sig. (2-tailed) | .000 | .000 | .001 | .003 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Availability of multiple e-retail applications and websites | Pearson Correlation | .509** | .390** | .385** | .310** | .529** | .598** | .489** | 1 | .490** |
| Sig. (2-tailed) | .000 | .000 | .000 | .005 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| Website content and marketing methods by e-retails | Pearson Correlation | .507** | .211 | .414** | .523** | .573** | .514** | .434** | .490** | 1 |
| Sig. (2-tailed) | .000 | .060 | .000 | .000 | .000 | .000 | .000 | .000 | ||
| N | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | |
| **. Correlation is significant at the 0.01 level (2-tailed). | ||||||||||
| *. Correlation is significant at the 0.05 level (2-tailed). | ||||||||||
Based on the ANOVA analysis, R Squared (0.890) and Adjusted R Square (0.875) values are higher than the standardized values set at 0.5. The R Squared value indicates that approximately 89% of the variations in the model can be explained by the model’s input, that is, almost 89% of the variation in the dependent variable is contributed by the independent variables. The value of adjusted R square implicates that almost 87.5% of the respondents feel that the perceived social media marketing activity is positively associated with customer brand awareness. This is because 87.5% of the responses lie close to the regression line and a high chance that the hypothesis is accepted. Thus, there is a chance that the null hypothesis of the study will be rejected. The independent variables website content and marketing methods by e-retails, product and convenience risk, home delivery of products, influence by friends and family, the service quality provided by the e-retail, availability of multiple e-retail applications and websites, good consumer policies like easy and free returns, refund policies etc, availability of new products round the year, good customer relationship systems impact customer’s choice of online purchase.
Table 6: ANOVA
| ANOVA | ||||||||||
| Model | R | R Square | Adjusted R Square | Std. Error of the Estimate | ||||||
| 1 | .943a | .890 | .875 | .236 | ||||||
| a. Predictors: (Constant), Website content and marketing methods by e-retails, Product and convenience risk, Home delivery of products, Influence by friends and family, The service quality provided by the e-retail, Availability of multiple e-retail applications and websites, Good consumer policies like easy and free returns, refund policies etc, Availability of new products round the year, Good customer relationship systems | ||||||||||
| Model | Sum of Squares | df | Mean Square | F | Sig. | |||||
| 1 | Regression | 31.311 | 9 | 3.479 | 62.624 | .000b | ||||
| Residual | 3.889 | 70 | .056 | |||||||
| Total | 35.200 | 79 | ||||||||
| a. Dependent Variable: Dependent external factors | ||||||||||
| b. Predictors: (Constant), Website content and marketing methods by e-retails, Product and convenience risk, Home delivery of products, Influence by friends and family, The service quality provided by the e-retail, Availability of multiple e-retail applications and websites, Good consumer policies like easy and free returns, refund policies etc, Availability of new products round the year, Good customer relationship systems | ||||||||||
Based on the findings of the coefficient of regression, coefficients that are significant in the table below are the service quality provided by the e-retail, home delivery of products, good customer relationship systems and availability of new products round the year are significant as they have p-value is less than 0.05 i.e. p value<0.05. Out of the 9 independent factors that impact customer responses, 4 were found to have a significant impact. Thus, the factors like service quality provided by the e-retail, home delivery of products, good customer relationship systems and availability of new products round the year improve the customer choice for online purchase. Thus, the current study finds that the hypothesis is accepted as 4 of the variable shave p<0.05. Therefore, the hypothesis that external factors do not impact customer’s choice of online purchase is rejected. Thus the null hypothesis is rejected and it is implicated that customer’s choice for online store and purchase is impacted by external factors like service quality provided by the e-retail, home delivery of products, good customer relationship systems and availability of new products round the year.
Table 7: Regression test
| Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||
| B | Std. Error | Beta | ||||
| The service quality provided by the e-retail | .262 | .050 | .287 | 5.221 | .000 | |
| Product and convenience risk | .024 | .046 | .026 | .518 | .606 | |
| Home delivery of products | .106 | .042 | .140 | 2.540 | .013 | |
| Good consumer policies like easy and free returns, refund policies etc | .049 | .042 | .064 | 1.143 | .257 | |
| Good customer relationship systems | .187 | .057 | .216 | 3.289 | .002 | |
| Availability of new products round the year | .223 | .052 | .274 | 4.244 | .000 | |
| Influence by friends and family | .086 | .044 | .098 | 1.969 | .053 | |
| Availability of multiple e-retail applications and websites | .058 | .051 | .064 | 1.136 | .260 | |
| Website content and marketing methods by e-retails | .071 | .049 | .081 | 1.445 | .153 | |
| a. Dependent Variable: Dependent external factors | ||||||
This section presents qualitative analysis based on the responses from the interviews on various factors that are responsible for the customer’s choice of online shopping i.e. the factors that impact customer’s choice for the online shopping and the strategies used by these online stores to lure and built customer relations and loyalty. The analyses have been presented thematically (Merriam & Grenier, 2019).
The analysis of the demographic profile revealed that, there are total of ten interviewees, 3 interviewees from the age group 35 years to 45 years age group. This is due to the fact that the maximum interviewees belonged to the strategic marketing and product planning department of the online stores. In terms of gender diversity, 1 of the interviewees are female and 2 are male interviewees. Further, it was found that three interviewees are very well experienced with the experience of 10-12 years in the present organization. Thus, it can be said that the response group comprised of middle aged to senior aged males who had been in the same company for more than 5 years. This means that the response group is apt for the study since the middle management and senior officials are more likely to provide detailed and correct responses.
Table 8: Demographic profile
| Interviewee Number | Gender | Years of Experience | Age group |
| 1 | M | 11 | 38 |
| 2 | F | 10 | 36 |
| 3 | M | 12 | 42 |
4.3.2 Theme 1: Online shopping
According to the statement of interviewee 2, “E- commerce has been grown very fast because of many advantages associated with buying on internet because of lower transaction and search cost as compared to other types of shopping. Through online shopping consumers can buy faster, more alternatives and can order product and services with comparative lowest price.”
In light of the announcements, web based shopping or promoting is the utilization of innovation for better showcasing execution. Furthermore, retailers are formulating methodologies to fulfill the need of online customers; they are occupied in contemplating purchaser conduct in the field of internet shopping, to see the shopper frames of mind towards web based shopping. In this way we have additionally chosen to think about buyer’s frames of mind towards internet shopping and explicitly concentrating the variables affecting purchasers to shop on the web. Through electronic showcasing and web correspondence business firms are organizing diverse advertising exercises, for example, statistical surveying, item improvement, advise clients about item includes, advancement, client administrations, client criticism, etc. Internet shopping is utilized as a mode for correspondence and electronic business, it is to increment or improve in worth, quality and engaging quality of conveying client advantages and better fulfillment, that is the reason web based shopping is more comfort and step by step expanding its prominence.
4.3.2 Customer attitudes and perspectives for online purchase
In this regard, interviewee 1 indicated that “Consumer’s attitude towards online shopping refers to their psychological state in terms of making purchases over the Internet. Online buying behaviour process refers to the products purchased online. The process of online buying behaviour consists of five steps and it is similar to traditional shopping behaviour.”This implies buyer perceive the requirement for getting some item (book), they alludes to the web to purchase on the web and begin to scan for the data and search for every one of the choices lastly make a buy which best meets to their requirements. Before making last buy purchasers are shelled by a few variables which points of confinement or impact customers for an official conclusion. Through electronic showcasing and web correspondence business firms are planning diverse advertising exercises, for example, statistical surveying, item improvement, educate clients about item includes, advancement, client administrations, client criticism, etc.
Interviewee 3 additionally involved that web architecture, site dependability/satisfaction, site client assistance and site security/protection is the most appealing highlights which impact the view of the purchaser of internet purchasing. Web based shopping clients’ populace infiltrates from more youthful clients to feeble online residents, the online client populace between the ages of 20 to 29 and online client populace on the age somewhere in the range of 31 and 39. Once more, interviewee 1 involved that with the variety of item class and the advancement of data innovation, clients are by and large increasingly careful to acquire the data of merchandise from sites, getting the proposals from companions so as to make a correlation was turning into an ideal methodology for clients to settle on shopping choice.
Alongside the quickened life cadence, clients not just seek after the high caliber and fair cost of every day supplies, yet additionally give close consideration to the briskness and comfort of web based looking with the end goal of efficient. Separating highlights of online utilization essentially show on the relapse of individual expending, the upgrade of purchaser activity, the escalation of interest for advantageous devouring and the decrease of items’ value, which are the noteworthy variables that influence customer brain science in the obtaining procedure.
Based on this, the interviewees implicated that by understanding consumer behaviour during the process of online shopping are considered by them as a planning towards strategy. Another strategy they indicated were “analyze the effectiveness of gender for customer online shopping behaviour with different marketing strategies for virtual shops and moreover, there is a need of studying on the influence of education and income for the online consumer behaviour as the transformation of rate of online shopping penetration”. Interviewee 3 showed triumphant promoting technique by examination of client online shop basic leadership and affecting variables for client purchasing conduct. Then again, interviewee 2 demonstrated the methodology to fulfill clients’ needs are partner with the promoting system of online store. “Website design one of the important factor motivating consumers for online shopping and website design features of the website are important and influencing factors that leads consumer’s satisfaction and dissatisfaction with a specific website” according to interviewee 2 and 3. Web architecture highlights can be considered as an inspirational factor that can make positive or negative sentiments with a site. On the off chance that site is planned with quality highlights it can control the clients for fruitful exchanges and pull in the clients to return to the site.
Another technique is client division significant for electronic trade achievement, and stays concentrated on socioeconomics to demonstrate the profile of Internet clients. These online retailers are concocting methodologies to satisfy the need of online customers by examining shopper conduct in the field of web based shopping, to see the purchaser mentalities towards web based shopping. They center around variables which impact buyers to shop on the web, online customer’s demography as far as Age, sexual orientation, salary and instruction is similarly essential to characterize their systems as needs be. Utilizing different instruments to comprehend the particular factors that impact shoppers to shop on the web. This so enables develop their techniques to cook online customers to like understanding the connection among age and frame of mind to on-line shopping. They likewise utilize web-based social networking in advertising procedures that prompts online informal showcasing via web-based networking media. The interviewees demonstrated adjust to the internet based life condition and utilize online networking as vital device for increasing an aggressive edge wide access of populace, web-based social networking offer positive qualities for business. Expanded Internet infiltration, improved safety efforts, accommodation of shopping in lives in a hurry, and, obviously, many retailers to browse these are a couple of components that are pulling in an ever increasing number of customers to shop on the web.
Online shopping is becoming more popular day by day with the increase in the usage of internet. Understanding customer’s need for online selling has become challenge for marketers. Specially understanding the consumer’s attitudes towards online shopping , making improvement in the factors that influence consumers to shop online and working on factors that affect consumers to shop online will help marketers to gain the competitive edge over others. Based on the current findings, it is implicative that factors like availability, low price, promotions, comparison, convenience, customer service, perceived ease of use, attitude, time consciousness, trust, and variety of products are the most important factors that impact customer’s online purchase. The findings also indicated that preferred device and mode of payment, products/ services bought from the online stores, frequency of shopping and amount of money spent per month, process of buying goods from the online stores, and increased using the Internet are also responsible to impact customer online purchase.
Chapter 5: Conclusion and Recommendations
Evaluating the above section of a research study it has been identified that external and internal factors such as ease of accessing information, payment mode and time management have provided flexibility to the customers to choose the best product and services that best fit their needs and demands. In the present day, the demand for online shopping has increased significantly due to the advent of technology such as SEO, which helps the consumers in shortlisting their search criteria and find for information that is used by the consumers in respect of determining their purchasing decisions. The growth of external factors in online shopping such as home delivery and ease of payment has made it easier for consumers to determine their purchase behavior. Whereas, the internal factors in online shopping such as ease of use and personal experience has made it easier for the consumers to select products that best fit their criteria. Moreover, while evaluating the external and internal factors that influence the behavior of the customers includes it has been noted that online shopping provides opportunities to the customers to compare the product and services based on the specifications that help the consumers in choosing the product that matches up to their expectations.
Based on the above discussion it can be stated that online shopping also benefits the customers in saving time and cost that helps them in increasing their shopping experiences. It has been noted that online shopping has made it easier for consumers to shop for their preferred brand without visiting physical stores. Consumers can window shop, search for alternative products and compare products of an online platform with that of another online platform. The higher experiences that online shopping provides to their customers it attracts them towards the online marketplace and save time and cost. Another crucial benefit that online shopping provides to its customers is that it helps the consumers in keeping their personal information safe. Data security in online shopping acts as an external factor that increases the trust of the customers towards the online platform and builds a relationship with them. Beatrix is an upgraded technological system that helps the online organisation to store the information of the customers in their system that helps them in managing the information of the customers and keep their data safe from hackers. Therefore, evaluating the research study it has been identified that both internal and external factors help the consumers in deciding their purchasing behavior.
- To determine the concept of online buying behaviour
Evaluating the concept of online buying behavior through the sources of the literature review it has been identified that consumers determine their purchasing behavior while considering various factors such as accessing information and using it to determine their purchase decisions. Furthermore, it has also been noticed that the advent of the internet has also increased the online buying behavior of the customers such as search engine optimization has enabled the customers to filter their search criteria by using keywords that help the customers to determine their purchase decisions based on the gathered information. Evaluating the literature review it has also been noticed that the concept of online purchase behavior has also increased as because it provides security to the consumers such as the information that is uploaded by the customers in the online platform is being stored and kept safe so that trust can be gained from them. The security and privacy provided by the online platform help in attracting the attention of the customers towards the firm and increase the user experience for the customers. Moreover, it has also been noticed that online platform provides opportunities to the customers to provide their feedback and suggestions in the online platform that helps the customers to stay connected and access better information and increase their satisfaction level.
- To evaluate the consumer buying process
The consumer buying process determines certain product appeal that attracts the attention of the customers towards the online platform and helps them in determining their purchasing decisions. Determining the literature review section it has been identified that the consumer buying process consists of problem recognition, in this stage the consumer identifies the problem that persists. Identification of the problem is the first step towards the consumer buying process. The second step of the consumer buying process involves information search, where the consumers search for information that best fits them according to their search criteria such as identifying the prices of the products and services along with its user ability. Once the stage of the information search is completed then the consumer goes for searching for alternatives, in this stage the consumers compare two identical products based on their shapes and sizes upon which they decide which item to purchase and on which price. Once, all the criteria are fulfilled then the researcher takes up the decision of purchasing based on the search criteria they have filtered for themselves. In this stage, the consumers also consider the mode of transactions that helps them in purchasing the product. The final stage of consumer buying behavior is post-purchasing evaluation where the customers determine the satisfaction rate such as whether the customer is happy with the product and would they recommend the brand to their friends and families.
- To determine the internal factors influencing the online purchasing behavior of consumers
The internal factors act as the stimulus that helps the consumers in determining their online purchasing behavior. Gathering evidence from secondary sources of information upon which the literature review section has been constructed is that internal factors comprise of ease of use. The online platform makes it easier for the consumer to access a wide array of information that benefits them in searching for information that helps them in finding out the most suitable product or service that they desired for. Personal experience also acts as the internal factor for the online purchasing behavior of consumers such as if the consumer has the positive experience of purchasing the products and services then they show their trust towards the online platform. The experience of the feel-good factor among the consumer helps them in their online purchasing behavior. The personal traits of the consumer also improve the online purchasing behavior of consumers such as the shelf-image and perception of the consumers benefits the customers in searching for products that fit their criteria. The shelf-image of the consumer also makes them follow the current trend which is accessed by the consumers to determine their purchase decisions. Finally, time management is one another factor that influences the purchasing behavior of the customers such as an online platform that helps the customers in saving time along with the additional cost of transportation. Therefore, time management as the internal factor benefits consumers in determining their online purchasing decision.
- To determine the external factors influencing the online purchasing behavior of consumers
External factors in the online platforms also influence the online purchasing behavior of consumers such as service quality of the product influences the behavior of the customers towards making up their minds to purchase any particular product. The quality of the products and services is also considered as the critical factor for the online purchase behavior of consumers. Evaluating the literature review it has been noticed that if the service quality matches the expectation of the customers then it becomes useful for the customers to decide their purchasing decision. Ease of payment is also another external factor that influences the online purchasing behavior of the consumers such as different mode of payment methods benefits the consumers in purchasing the items that match to their satisfaction. Finally, it has also been noticed that easy accessibility and consumer reviews are the ones that influence the online purchasing behavior of the consumers. Consumer reviews help the online marketplace to design the products and services that match the expectations of the customers and retain their trust and loyalty towards the online platform.
The study is based on the analysis of evaluating the impact of internal and external factors influencing the online purchasing behavior of consumers in India. Evaluating the study it has been identified that the online purchasing behavior of the consumer depends upon certain factors such as time management, ease of information sourcing and data security. Based, on the analysis the recommendation that can be provided is as follows.
Firstly, the online marketplace needs to conduct market research in terms of identifying the growing trends within the business environment, as because customers nowadays shift their focus quickly from one product to another. Therefore, it will become necessary for the online platform to access the needs and demands of the customers and then design the products accordingly so that their trust and respect can be gained.
Secondly, it has been noticed that data security is one of the major threats that mainly arise while keeping the data safe of consumers. Henceforth, it is recommended to install an advanced CRM software tool that can be used to store the information of the customers so that it cannot be used by any other. Big data analysis can also be used with an advanced CRM system that will help the customers in showing their trust and integrity and develop their online purchasing behavior.
The study is based on evaluating the impact of internal and external factors influencing the online purchasing behavior of consumers in India. To get a clear insight in regards to the topic, this study has been developing in the context of India. The online purchasing behavior of the consumer is a vast topic that can be analysed by the incorporation of many other companies. Involvement of other companies would provide more insight on this topic and will help in understanding this topic. Moreover, in this study only 80 customers have been taken into consideration, henceforth, there can be involvement of more customers for better analysis in terms of identifying the internal and external factors influencing the online purchasing behavior of consumers. Therefore, there is a scope of future research on the topic which can be used to provide more distinctive information on the topic which will help in analysing the study successfully.
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