Effect of online shopping in retail business of Kerala- influence of smart phones

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The purpose of this study was to establish, by means of quantitative analysis, the demographic features of the online shopping consumers of Kerala and the influence of using smartphones in making online purchase.

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Nội dung Text: Effect of online shopping in retail business of Kerala- influence of smart phones

International Journal of Management (IJM) Volume 9, Issue 3, May–June 2018, pp. 164–171, Article ID: IJM_09_03_016 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=3 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication EFFECT OF ONLINE SHOPPING IN RETAIL BUSINESS OF KERALA- INFLUENCE OF SMART PHONES Shabeer V P PSMO College, Tirurangadi, Kerala Dr. P V Basheer Ahammed PSMO College, Tirurangadi, Kerala ABSTRACT Online shopping habits among consumers in Kerala have increased in the recent days as retailers have taken full advantage of opportunities presented by the internet. More and more retailers are now coming front to set up web stores. Earlier there are only specialized online shopping sites are doing their business, but now more retailers are started to set up web stores to serve their customers well. The purpose of this study was to establish, by means of quantitative analysis, the demographic features of the online shopping consumers of Kerala and the influence of using smartphones in making online purchase. This will be helpful for the online companies to plan accordingly. The study was conducted during 2017-18 on a convenience sample of respondents from three regions of Kerala. Key words: E-Shopping; Online Consumers; Web store; Smartphones. Cite this Article: Arkadiusz Mironko, The Impact of Human Capital and Skill Availability On Attraction of Foreign Direct Investment (FDI) Into Regions within Developing Economies, International Journal of Management, 9 (3), 2018, pp. 164– 171. http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=3 1. INTRODUCTION The consumers’ choice of retail purchase is usually governed by the variety of goods and services offered by the retailers. The consumers are influenced by the assortment of various products, price of the products, shopping experiences and the transactional convenience in making their retail purchase. It is seen that now a days the life style of people has changed a lot even in the rural areas. The meaning of shopping also has changed a lot for them. Now shopping is not just a necessity for the people, but it is a way of their life style. The history of retail business shows that the way of selling has been changing along with the changes in the life style of people and the changes in the technology. http://www.iaeme.com/IJM/index.asp 164 editor@iaeme.com
Shabeer V P and Dr. P V Basheer Ahammed The fast growing technological developments gave a new face and pace to the modern world. The advent and popularity of internet, accompanied by the growth of related technologies, has created tremendous impact on the way of doing business and the lifestyle of people around the world. The ability of internet to connect people around the world without any boundaries, provided to the business a new scope and platform for doing their business. The setting of online stores provides the business and consumers, the facility of buying and selling goods and services virtually anywhere, 24 hour a day, 7 day a week without any political and geographical boundaries. Now it is seen that more and more retailers are setting online stores and consumers are making purchase through these virtual stores. 2. STATEMENT OF THE PROBLEM In response to the facility and opportunity offered by the internet, many retailers adopted web sites as part of their marketing activities. All the online shopping companies have their own mobile app also for promoting their web store. It is seen that, there is a huge trend shift in the traditional retail purchase among the consumers also. In Kerala, the consumers experience in online shopping has been made by the researcher for studying the perception towards online shopping in substitution of traditional brick and mortar retail shop purchase. 3. OBJECTIVE OF THE STUDY • To analyze the experience and intention of consumers towards online purchase. • To analyze the demographic differences among the online buyers in Kerala. • To identify the influence of various devices used in online purchase habits of consumers in Kerala. 3. METHODOLOGY OF THE STUDY Data are collected from both primary and secondary sources. Primary data are collected from the internet users in Kerala. The primary data was collected in three districts of Kerala which are divided in to three regions namely North, Middle and South as mentioned in the first chapter. The researcher selected the districts randomly by using lottery method. The selected districts are; Calicut district from the North region, Trissur from the Centre region and Thiruvananthapuram from the south region. Primary data’s are collected through questionnaire and interview methods. A structured online questionnaire was built by using Google form in correlation with objective of research and hypotheses. About the secondary data, the concepts regarding consumer behavior and other literature regarding online shopping were taken from the different reference books, article and journals. Under the circumstances of unsure total population, the researcher uses the following formula to calculate the sample size for this research study. The researcher wishes to have a 95% confidence level and 5% confidence interval of the right population of the online shoppers to calculate the sample size. http://www.iaeme.com/IJM/index.asp 165 editor@iaeme.com
Effect of Online Shopping In Retail Business of Kerala- Influence of Smart Phones Sample size = Z2 x (p) x (1-p)/C2 Where: Z= Z value. (1.96 for 95% confidence level) P= Percentage picking a choice, expressed as decimal (.5 used for sample size needed) C= Confidence interval, expressed as decimal Sample size = 1.962 x (.5) x (1-.5)/.052 = 3.8416 x .25/ .0025 = .9604/ .0025 = 384.16 So the sample size calculated for this research study is rounded off to 384 samples. The researcher used various statistical tools like percentages, crosstab analysis, Chi- Square test and weighted average mean for analyzing the collected data. 4. RESULT AND DISCUSSIONS OF THE STUDY The researcher studied the demographic features of the online shoppers, experience of online shoppers related with device used to make online purchase and the influence of smartphones in online shopping. 5. DEMOGRAPHIC CHARACTERISTICS OF ONLINE BUYERS The first part of the questionnaire contains the demographic details of the online buyers. The data collected are presented in the Table 1 below. Table 1 Demographic Characteristics Demography Characteristics Frequency Percent Gender Male 329 85.7 Female 55 14.3 Total 384 100 Age 16-25 109 28.4 26-35 230 59.9 Above 55 45 11.7 Total 384 100 Education +2/Equivalent 65 17 Graduate 245 63.8 Post Graduate 54 14 Others 20 5.2 Total 384 100 Occupation Employment 186 48.4 Business 59 15.4 Student 98 25.5 House wife 13 3.4 NRI 28 7.3 Total 384 100 Income 20000- 40000 208 54.2 40000- 60000 152 39.6 >60000 24 6.2 Total 384 100 Place of Living North 128 33.3 Central 128 33.3 South 128 33.3 Total 384 100 Residence Rural 139 36.2 Urban 245 63.8 Total 384 100 http://www.iaeme.com/IJM/index.asp 166 editor@iaeme.com
Shabeer V P and Dr. P V Basheer Ahammed The above table shows that respondents were mostly male (85.7%) and only 14.3% females are attended the survey as online shoppers in Kerala. From this statistics, it is clear that compared to female population, male population is predominant in online shopping in Kerala. The ages wise details of the respondents show that majority of the respondents (88.3%) in the survey were aged between 16-35 age ranges (28.4% for 16-25 age group and 59.9% for 26- 35 age groups). Only 11.7% of the respondents are aged above 35 years. It clearly shows that the younger generations of Kerala are more interested in buying through online shops. The education wise data of the respondents shows that the majority of the online shoppers are educated. 77.8 percent of the respondents are having graduation or above level of education. So this data clearly indicates that the education level of people in Kerala have certain influence on their interest in the purchase through online shops. The occupation wise data shows that in Kerala those who were employees are more interested in the purchase of products online (41.1%) compared to other segment. The next highest percent of online buyers in Kerala are students (25.5%). As per the information received through the survey, it shows that majority of the respondents (54.2%) who buy online in Kerala are falls under the income group of 20000-40000 and 39.6% of respondents are 40001-60000 income groups. As the researcher not asked for any income proof from the respondents, there may be chances of providing faulty information due to the basic nature of people on not to disclose the actual income due to unnecessary fear of leaking the information which may leads any trouble to them in future. The researcher purposefully selected equal number of respondents in all regions of Kerala. The survey data reveals that majority of respondents who make online shopping in Kerala are resides in Urban area (63.8%) and the Rural respondents are only 36.2% of the population. It is a clear indicator that in Kerala, urban population are more attracted with the new changes in the marketing and shopping habits and interested in online shopping. 6. DEVICE USED TO ACCESS THE INTERNET/ PURCHASE ONLINE The device used for making online purchase also matters in the growth of online shopping in Kerala. Normally, Desktop, Laptop and Smartphones are the various devices used by the consumers for shopping online. The researcher checked which device is using the online shoppers of Kerala more for accessing the internet and making their online purchase. Three options (Desktop, Laptop and Smartphone) have given to the respondents to respond. Table 2 Device used to access the internet/purchase online Frequency Percent Desktop computer 27 7 Laptop 109 28.3 Valid Smartphone 248 64.7 Total 384 100.0 The above table reveals that among the online buyers in Kerala, 7% respondents are using their desktop computers, 28.3% respondents are using their Laptop and a majority of 64.7% is using their Smartphone for accessing the internet and making online purchase. This study focuses on the influence of smartphones in the growth of online shopping in Kerala. For the present generation of mobile users, the meaning of mobile phones also has changed. Smartphones are become a fashion and a new life style among them. The multiple uses of smartphones really attracted the mobile users towards it. Most smartphones in the market have the access of high speed internet, high definition large display and can run third http://www.iaeme.com/IJM/index.asp 167 editor@iaeme.com
Effect of Online Shopping In Retail Business of Kerala- Influence of Smart Phones party applications. All the online shopping companies have their own mobile app for promoting their web store. 7. RELATION BETWEEN GENDER AND DEVICE USED TO PURCHASE ONLINE The researcher further checked whether the device used to make online purchase have any significant relation between the genders of the online buyers in Kerala. Table 3 Gender Total Male Female Desktop 25 2 27 Device Laptop 98 11 109 Smartphone 206 42 248 Total 329 55 384 Value Df Significance Pearson Chi-Square 1.406a 2 .504 The gender wise cross tab of device used to make online purchase also shows that both male and female are using smart phone more for internet access and online purchase. The chi- square test also shows that there isn’t any significant difference among the genders of the online buyers in using the device to make online purchase in Kerala. 8. RELATION BETWEEN AGE AND DEVICE USED FOR ONLINE PURCHASE The researcher checked whether the device used to make online purchase have any significant relation between the ages of the online buyers in Kerala. Table 4 Desktop Laptop Smartphone 16-25 4 10 95 109 Age 25-35 15 77 138 230 >35 8 22 15 45 Total 27 109 248 384 Pearson Chi- Value Df Significance Square 34.208a 4 .000 The above table shows that, in between the age groups, out of the 230 respondents aged in between 25-35, a majority of 138 which is 60%, are using smart phones for internet access and online purchase. It also shows that, in case of above 35 year old respondents, out of 45 online buyers, a majority of 22 which is 49% are using their Laptop for the same purpose. But among the age groups, when we take the percentage of respondents who buy online, out of the 109 online buyers of 16-25 age groups 87% are using smartphones to make online purchase. The result again checked with chi square test to know weather the difference is significant or not, and here the chi square value which is less than 5% shows that the difference is highly significant. It means that there is significant difference between the age of the online buyers and the device used to make online purchase among the e shopping consumers in Kerala. http://www.iaeme.com/IJM/index.asp 168 editor@iaeme.com
Shabeer V P and Dr. P V Basheer Ahammed 9. RELATION BETWEEN OCCUPATION AND DEVICE USED TO SHOP ONLINE The researcher checked weather there is any relation between the occupation of the respondents and the device used by them to purchase online for technological products in Kerala. Table 5 Occupation Total Employment BusinessStudentHouse wifeNRI Desktop 13 4 8 2 0 27 Device Laptop 61 29 11 0 8 109 Smartphone 112 26 79 11 20 248 Total 186 59 98 13 28 384 Value Df Significance Pearson Chi-Square 60.150a 10 .000 The table shows that, irrespective of occupational difference, the online buyers are not using desktop so often for making online purchase. The business people are using laptop more for making online purchase. All other segments are using smartphones more for making online purchase. But it is to be noted that 40% of the employment class are using either laptop or desktop for making online purchase. The result again checked with chi square test to know weather the difference is significant or not. Here the chi square value is .000 which shows that the difference is highly significant and it means that the device used by the respondents to access the internet and making online purchase and their occupation has significant difference. Based on the nature of jobs the respondents are using different devices to shop online. 10. RELATION BETWEEN AREA OF RESIDENCE AND DEVICE USED TO SHOP ONLINE The researcher checked weather there is any relation between the area of residence of the respondents and the device used by them to purchase online for technological products in Kerala. Table 6 Area of Residence Rural % Urban % Total Device Desktop 9 6.5 18 7.4 27 Laptop 27 19.4 82 33.4 109 Smartphone 103 74.1 145 59.2 248 Total 139 100 245 100 384 Value Df Significance Pearson Chi-Square a 15.243 2 .000 The above crosstab shows that both the rural and urban respondents are using smart phones more to purchase online. But when we take the percentages of the respondents it shows that 74.1% of rural people are using smart phones while it is only 59.2% in case of the urban people. 33.4% of the urban respondents are using laptop for online purchase while it is only 19.4% in case of rural people. The researcher then conducted a chi square test to check whether this difference is significant or not. Here the chi square value is .000 which shows that the difference is highly significant. It means that the device used by the respondents to access the internet and making http://www.iaeme.com/IJM/index.asp 169 editor@iaeme.com
Effect of Online Shopping In Retail Business of Kerala- Influence of Smart Phones online purchase and their area of residence has significant difference. The respondents who lives in rural and urban area are significantly differ in using different devices for making their online purchase. 11. SMARTPHONE AS A SHOPPING TOOL The 150 respondents who were using smartphones for making online purchase were randomly selected and asked to rank each variable in the order of preference from 1 to 5 against the purpose of using smart phone as a better device for making online purchase. Table 7 Sl No. Variables Weighted Mean Rank 1 Comfort in using 36 1 2 E shopping mobile App facility 28.53 4 3 Mobility while shopping 31.07 3 4 Strong and cheaper internet connectivity 19.4 5 5 Always in touch with the internet 35 2 The statistical analysis of the survey data by using the weighted mean score and there by the rank shows that out of the five variable used to check the advantage of using smartphones as the device to make online shopping, comfort of using the smart phone is the most powerful motive. The smartphones ability to connect internet always, comes second rank. Mobility while shopping, E shopping mobile App facility and Strong and cheaper internet connectivity are coming in the respective ranks, also influencing the buyers to use smartphones for making online purchase. 12. FINDINGS OF THE STUDY 1. The future of online business in Kerala is promising. Majority of the online buyers are below 35 years old 2. The male population is predominant in online shopping in Kerala compared to female buyers. 3. The urban consumers are more interested in online shopping compared to the rural consumers 4. The income of the consumers doesn’t have any influence in the online shopping habits. 5. The education of the consumers positively influencing towards buying online. Majority of the online buyers have an education of graduation and above. 6. Majority of the online buyers are using smartphones to buy online. 7. Comfort in using smartphones is the most influenced drive towards buying online through smartphones. 13. SUGGESTIONS 1. The online companies should concentrate more on attracting rural consumers towards online shopping. 2. The mobile app should make more user friendly to attract more consumers towards online shopping 3. Uneducated consumers are not so often purchasing through online. To overcome this, company homepage should be clearer and easily understandable to the uneducated consumers also. 4. The aged consumers are not much attracting towards online shopping. The character font size must be large enough to read for the aged consumers and the product picture display must be clearer. 5. Online companies should make deliberate attempt to attract more female consumers by providing ads or any other promotional activities. http://www.iaeme.com/IJM/index.asp 170 editor@iaeme.com
Shabeer V P and Dr. P V Basheer Ahammed 6. As the online shopping habits increasing among the consumers, more and more retailers should open a web store along with their traditional bricks and mortar retail shops. 14. CONCLUSIONS The online shopping is now becoming a habit of consumers in Kerala for making retail purchase. The number of online consumers is increasing day by day. Almost all categories of products are now available in online shopping sites with comparatively at a lesser price. The popularity of using smartphones also helped the growth of online shopping habits among the consumers. The study reveals that majority of the online buyers in Kerala are using their smartphones for making online purchase. The consumers feel more comfort while using smart phones for making online purchase. It also has an advantage for the consumers in touch with the internet always and they can make their purchase without wasting their valuable time. Through the smart phones, the consumers can make their online purchase even when they travelling. As majority of the online buyers are aged below 35 years shows that the future of online business in Kerala is also very much promising. REFERENCE [1] Prabhakar Naidu R and Prof. Padmavathamma M, An Architectural Approach to Provide Security to The LL and CL in Smart Phone ADHOC Networks (SPAN). International Journal of Computer Engineering & Technology, 8(6), 2017, pp. 1–11. [2] Samir Mohammad, Saqib Iqbal, Ibtehal Aburezeq, Yousef Altoum, Ghassab Alameri, Rana Hazem, Sara Alhamrouni, Ahmed M. Alzeyodi, Mansour S. [3] Almarboouei and Waheed A. Alarab, Smart Phones and Road Collisions, International Journal of Civil Engineering and Technology, 9(5), 2018, pp. 549–565 [4] Dr. Mousumi Sengupta and Dr. Nilanjan Sengupta, Marks and Spencer: Revolutionizing the retail business globally. Journal of Management, 5(4), 2018, pp. 01–08. [5] Dr. D. Sudhakar and R.Swarna Deva Kumari, Customer Satisfication Towards Online Shopping: A Study with Reference to Chittoor District. International Journal of Management, 7(3), 2016, pp. 34-38. [6] Jugdeep Kaur and Seema Baghla, Modified Decision Table Classifier By Using Decision Support and Confidence In Online Shopping Dataset. International Journal of Computer Engineering & Technology, 8(6), 2017, pp. 83–88. http://www.iaeme.com/IJM/index.asp 171 editor@iaeme.com