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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.
Shabeer V P and Dr. P V Basheer Ahammed
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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.
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Sample size = Z
2
x (p) x (1-p)/C
2
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 = 1.96
2
x (.5) x (1-.5)/.05
2
= 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
Shabeer V P and Dr. P V Basheer Ahammed
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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
Valid
Desktop computer 27 7
Laptop 109 28.3
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
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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
Device
Desktop 25 2 27
Laptop 98 11 109
Smartphone 206 42 248
Total 329 55 384
Pearson Chi-Square Value Df Significance
1.406
a
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
Age
16-25
4 10 95 109
25-35
15 77 138 230
>35 8 22 15 45
Total 27 109 248 384
Pearson Chi-
Square
Value Df Significance
34.208
a
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.