Trends in the online shopping patterns of customers in Kattakada Panchayath of Thiruvananthapuram district

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Online shopping is making rapid strides in our society in the recent times. it has been common phenomenon in the urban areas of the country while not making proper inroads in the rural areas.

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International Journal of Management (IJM) Volume 9, Issue 5, September–October 2018, pp. 65–74, Article ID: IJM_09_05_008 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=5 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication TRENDS IN THE ONLINE SHOPPING PATTERNS OF CUSTOMERS IN KATTAKADA PANCHAYATH OF THIRUVANANTHAPURAM DISTRICT Sreejith R K Assistant Professor of Management Department, Vigyaan College of Applied Sciences, Kattakada PO, Thiruvananthapuram, Kerala, India ABSTRACT Online shopping is making rapid strides in our society in the recent times. it has been common phenomenon in the urban areas of the country while not making proper inroads in the rural areas. However, this study conducted in a typical semi-urban area in Kerala state of India has proven that online shopping has penetrated the semi- urban / rural community also. a majority of the respondents of Kattakada Panchayat of Thiruvananthapuram district of Kerala state, irrespective of gender, age or education, has shopped online frequently. at the same time, a major portion of the online shoppers have also faced problems during online shopping, delivery of the wrong product or damaged product being the most common problem. It has been shown that the respondents of the study have favourable attitude towards online shopping. Hence, if the online shopping companies pay more attention to solving the problems faced by the customers during online shopping, they can reach more number of people even in the remote areas of the country. Key words: Digital Marketing, E-Commerce, Google, Trends, Online shopping, Customers. Cite this Article: Sreejith R K, Trends in the Online Shopping Patterns of Customers in Kattakada Panchayath of Thiruvananthapuram District. International Journal of Management, 9 (5), 2018, pp. 65–74. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=5 1. INTRODUCTION Online shopping as defined by Master card Worldwide Insights (2008) is the process of purchasing goods and services from merchants who sell over the internet. Generally, it is also known as internet buying, electronic shopping, online purchasing or internet shopping. Kim (2004) further defined internet shopping as examining, searching for, browsing for or looking at a product to get more information with the possible intention of purchase on the Internet. By looking at other perspective, Chiu et al (2009) considered online shopping as an exchange of time, effort and money for receiving products or services. Retailers see it as internet/online 65
Trends in the Online Shopping Patterns of Customers in Kattakada Panchayath of Thiruvananthapuram District retailing, e-commerce or e-store/online store, which refers to “the sale of retail goods via online channels, valued at retail selling price” (Data monitor, 2009). As such, there are various ways of defining online shopping and it may depend on which perspective we are looking at or interested in. Online shopping is no doubt the future trend in India. Online shopping on sectors such as fashion and accessories, electronic/electrical goods and books are growing in the metro cities and urban areas of India at a very rapid rate. However, little is known about the acceptance of online shopping and problems faced by customers in other parts of the country. The purpose of this study is to identify the extent of influence of online shopping on the population of Kattakada Panchayat situated on the outskirts of Thiruvananthapuram, the capital city of Kerala. Online shopping is easy, quick and literally a click away. But it isn‟t that simple and has many issues. While shopping online, consumers are faced by many challenges, which are not necessarily limited to fake products or hidden costs alone. Customers like to shop at websites that offer them convenience, are easy to browse through, aesthetically appealing and provide relevant information. When the website is not optimized right, it leads to the case of abandoned carts, order cancellations or returns. Studies show that while 43% of the purchases are influenced by online information, online sales are only 9% of in-store sales. 2. ONLINE SHOPPING PROBLEMS THAT CUSTOMERS FACE AND POSSIBLE SOLUTIONS 2.1. Product Quality This is the most common problem faced by customers who shop online regularly. The quality of the product is often not up to the mark with what is presented in the pictures. With the competition growing in the e-commerce industry, as many websites become a marketplace for sellers to sell their products, and the issue of fraudulent sellers is increasing. The checks on registration are poor and selling poor-quality in the name of brands is becoming increasingly common. Even worse, quality-checks have become so rare with the magnitude of online sales which is soaring high. 2.2. Logistics are a mess This is another common issue faced in online shopping. Barring a few websites, delivery and logistics is a major issue. Websites are becoming so casual about the delivery quality of products. So many times, either the package is lost or damaged while in transit. Customers are facing a troubled time with the tracking systems which do not accurately locate the product. Often customers choose same-day-delivery by paying a few extra bucks only to get their product delivered. Many of these companies do not follow the stipulated time limit, leaving consumers confused as the products come in too late. The issue is the same with returns. You place an order for the returns to be picked up and there is no response. They will send the delivery guy when they seem fit, almost never according to the promised time. Sometimes customers receive the product after the need is over. Possible Solution: Since logistics has become very complex, it is mandatory for ecommerce business owners to keep tabs on it. An ecommerce platform with inventory management solutions can give an idea to the owner about the stock status and thus, product deliveries can be managed much more accurately http://www.iaeme.com/IJM/index.asp 66 editor@iaeme.com
Sreejith R K 2.3. Delivery Time is Not Clear So many times, the delivery time is not clearly stated in the order process. More often than not, consumers do not know when the product will be delivered. Consumers buy a product and the ecommerce businesses do not even state the time of delivery. Many a times, these orders take more time than expected to be delivered. It‟s important for buyers to have realistic expectations and know when they can expect their orders. It is important for people to know when their product is arriving so that they can plan their day accordingly. Customers often complain that the delivery boys do not even call them before arriving to deliver the product. The best thing is to check with the website about the estimated time of arrival of a certain product before you place the order. Possible Solution: Send Message to the customer when the order is shipped and then when it is expected to be delivered so that the customer is prepared to receive it. 2.4. Payment Preferences are Limited This is another common problem. A lot of times, consumers do not know how to make the payment if the debit cards they use are not available as an option. More so, customers are often stuck with the payment options when Cash On Delivery is not available. With online frauds picking up steam, most customers prefer paying cash on delivery as they are skeptical about sharing their card details. This is a common complaint by many customers these days. They do not have many payment methods that they can trust Possible Solution: An e-security seal like TRUSTe on the website can help earn the trust of the consumer opting for e-payments on the website. Further, use of e-payments offers convenience to the buyers and hence leads to increase in sales. 2.5. Payment Confirmation Missing Another challenge is to find a payment gateway that is smooth. Sometimes when the customers are directed to the payment page, their money is deducted and suddenly, the page shuts off without any notice to the consumer. And that‟s when the customer is in a fix. Then chasing the company for a refund is a different challenge altogether. With bulk sales happening at the same time, sometimes it‟s a ecommerce specialist to ensure that the payment page is working fine. Also sometimes the website asks too many secret questions or too much info before the customer can make the payment. This too can increase the perceived inconvenience during the purchase and leads to an abandoned cart. Possible Solution: A quick fix is to email payment confirmation to the customer. If a customer gets an email confirming the order, they are not worried about the outcome. They know they are paying for an order that has been placed successfully. Also, keep the payment process simple and easy to execute without including too many stages. 2.6. The Trouble with Hidden Costs This is another common issue customers face even with leading e-commerce development companies. Online marketplaces do not tell customers the hidden costs on so many things. For instance, the customer is lured into buying something that says is cost at a certain price. Within minutes, they are paying a lot more to get the product delivered, tax charges, additional shipping, etc. This eventually leads the customer to pay a lot more than he or she had expected. Possible Solution: A simple solution is to keep the charges so apparent that the customers do not feel cheated and buy the products of their interest for sure. http://www.iaeme.com/IJM/index.asp 67 editor@iaeme.com
Trends in the Online Shopping Patterns of Customers in Kattakada Panchayath of Thiruvananthapuram District 2.7. Unclear Website Policies Many shopping websites do not even have clear and concise website policies for return and refund. Consumers get confused due to vague stipulations about a refund and return. When the policies section is not defined properly, sellers reject a consumer‟s claim to return or get a refund. This is among the biggest challenges that many customers face online. A lot of these websites have no clear outline on the warranty and guarantee of products. A buyer can take this to consumer court in case the demands are not met with. Possible Solution: Localization is the key as the online businesses go global. The website policies and other information should be available in different languages for people to understand them better and clearly. 2.8. Problem of Plenty The online world provides too many options and it can be overwhelming for the customer to make a choice. The absence of support that most customers are used to in the in-store experience is missing and this can chicken out them of a purchase decision. Possible Solution: Give proper product specs in the same format for all products so it is easy to compare them. Instead of overloading the customer with information, give minimal but useful information. A shopping comparison tool can help buyers simplify their purchases decisions. Also, a live chat option to offer queries always is comforting for buyers to make that final click. 2.9. Complicated Navigation Does your website resemble a maze of where the visitor feels lost? It‟s tempting to opt for complex looking website structures and designs and they may also hook in many curious customers; but this may not be a great idea to build long-term customer base. Most visitors get frustrated with this complex monstrous website and bounce off. Possible Solution: Keep the website structure simple and provide easy navigation tools to the customers. Magento ecommerce developers often use heat-map tools to analyze where the customers spend maximum time and where do they bounce off. This analysis can help them remove the clutter and help the visitors go to the information/page they want smoothly. Do away with long forms. Also, reduce the number of clicks required to complete a purchase. 2.10. Boring Interfaces While overwhelming site structures can be a bummer, websites with insipid interfaces don‟t get much done either. It‟s hard to get attention of the customers, so make sure you get it right at the first go. Shoppers are an impatient lot. Get their attention with attractive website designs that allure visitors and give them an enjoyable experience both on desktops and other handheld devices like mobiles, tabs etc Possible Solution: Make sure your web pages don‟t take too long to load. Give interactive product guides to keep visitors entertained and engaged at the same time. 3. STATEMENT OF PROBLEM The purpose of this study was to identify the extent of acceptability of online shopping by the local people of a typical middle class town area in the country and the awareness among them of the possible risks associated with it, while mainly concentrating on the problems faced by them while shopping online. Online sites record important customer data like name, phone number, address, and bank details. If these sites don't implement stringent cyber security http://www.iaeme.com/IJM/index.asp 68 editor@iaeme.com
Sreejith R K measures, your data is at risk of falling into the wrong hands who can then wreak havoc on your bank account. Nearly half of customers who bought goods online over the past two years had a problem with their purchase, new research has revealed. These range from being high Price, extra delivery charge and low quality or incurring an unexpected fee to the items arriving faulty or damaged. Extended service packages from retailer or third parties usually are overpriced and generally are not of good value. Since the online of the study area are well educated, they know the importance of the problems faced while shopping online and the ways to overcome it. Hence, it was decided to conduct a study on the topic “Trends in the online shopping patterns of Customers in Kattakada Panchayat of Thiruvananthapuram District” for project work. 4. SCOPE OF THE STUDY This study mainly focus on primary data, which data collected from the online purchasing customers in Kattakada Panchayat of Thiruvananthapuram District only. The study covers opinion of customer about online shopping and problems faced by the customers related to online shopping. 5. OBJECTIVES The main objectives of the study are as follows:  To identify the socio economic status of the customers doing online shopping.  To analysis the factors influencing the customers about online shopping.  To analysis the problems faced by the customer while shopping online.  To identify suitable methods for solving their problems based on the findings 6. METHODOLOGY 6.1. Primary Data The primary data were collected from the field directly with the help of an interview schedule. Sample size The data were collected from 150 sample respondents at Kattakada Panchayat selected through convenience sampling. 6.2. Secondary Data Secondary data are those which have been collected by someone else and which already have been passed through statistical process. The secondary data has been collected from various books, journals, magazines. 6.3. Tools for Analysis Statistical tools such as table, percentage, Standard deviation method were used to analyse the data collected and to arrive the conclusion. 7. LIMITATIONS: 1) The study is confined to the population of Kattakada Panchayat of Thiruvananthapuram District only. 2) The data collected for the research is based mainly on the primary data given by the respondents. There is chance for personal bias which may affect accuracy. 3) The study was conducted within a limited time period which might not have been sufficient to the identify the full extent of the problems faced by online shoppers. http://www.iaeme.com/IJM/index.asp 69 editor@iaeme.com
Trends in the Online Shopping Patterns of Customers in Kattakada Panchayath of Thiruvananthapuram District 4) Inhibition to respond openly on the part of the respondents. 8. ANALYSIS AND INTERPRETATIONS Table 1: The demographic profile of the sample respondents are presented in the following table Table 1 Demographic Variables Variables Category Frequency Percentage (%) Male 60 40 Gender Female 90 60 Total 150 100 Below 20 24 16 20-30 60 40 30-40 30 20 Age 40-50 21 14 50 and above 15 10 Total 150 100 HSC 30 20 UG 66 44 PG 39 26 Level of Education Diploma 15 10 Any other - - Total 150 100 Students 75 50 Business / profession 30 20 Government agencies 24 16 Occupation Private services 12 8 Unemployed 9 6 Total 150 100 Below Rs.10,000 12 8 Rs.10,000-20,000 30 20 Rs.20,000-40,000 54 36 Monthly Income Rs.40,000-60,000 30 20 Above Rs.60,000 24 16 Total 150 100 Nuclear Family 115 76.60 Type of Family Joint Family 35 23.40 Total 150 100 Rural 45 30 Domicile Urban 105 70 Total 150 100 Source: Primary data The above table shows that most of the respondents are female (60%), who are purchasing online in the study area as compared to males in the area. The respondents in the age group of 20-30 are the maximum users of online purchasing in Kattakada (40%). Among the total of 150 sample respondents, 44% of the respondents having educational qualification of undergraduate level use online shopping. Similarly, another 26% of the respondents having educational qualification of post-graduate level also use online shopping. Under the occupation category, students (50%) have maximum use of online purchasing. As regards the income, the persons who are earning Rs.20,000- 40,000 income level show maximum use (36%) of online purchases in Kattakada. http://www.iaeme.com/IJM/index.asp 70 editor@iaeme.com
Sreejith R K Out of 150 respondents 76.60 per cent of the respondents are from nuclear family and 23.40 percent of the respondents are from joint family. The majority of the respondents are nuclear family. Among the 150 respondents, 70 per cent of the respondents are urban, i.e., based at Kattakada town itself, while 30 percent of the respondents are rural. The majority of the respondents are living in the town area. 9. YEAR OF EXPERIENCE TOWARDS ONLINE SHOPPING Table 2 presents the details of the year of experience using online shopping. Table 2 Year of Experience using Online Shopping Sl. No Year of Experience No. of Respondents Percentage to Total 1. Up to 1 year 65 43 2. 2-3 year 60 40 3. More than 3 year 25 17 Total 150 100 Source: Primary Data It is clear from the Table 2 that among the 150 respondents, 43 per cent respondents have online shopping experience below 1 year, 40 per cent respondents have been using online shopping for 2-3 years and only 17 per cent respondents have spent more than 3 years. The majority of the respondents are using online shopping for less than 3 years only. 10. CATEGORY OF GOODS PURCHASE THROUGH ONLINE Table 3 depicts the details of the category of goods purchased online by the respondents. Table 3 Category of Goods Purchase Sl. Category No. of Times No. purchase 1. Clothes 150 2. Electronics 100 3. Mobile and Mobile Accessories 165 4. Cosmetics care product/Fashion accessories 55 5. Household products 50 6. Books 80 7. Food wares 110 8. Others 25 Total 735 Source: Primary Data It is vivid from Table 3 that all the 150 respondents together purchased totally 735 kinds of goods and services through online shopping. Mobiles and mobile accessories topped the list of items purchased by the residents of the panchayat. http://www.iaeme.com/IJM/index.asp 71 editor@iaeme.com
Trends in the Online Shopping Patterns of Customers in Kattakada Panchayath of Thiruvananthapuram District 11. PROBLEMS FACED Table 4 details the problems faced by customers in Kattakada Panchayat while shopping online. Table 4 Problem of Customers in Online Shopping Sl. Opinion No. of Respondents Percentage to Total No 1. Yes 90 60 2. No 60 40 Total 150 100 Source: Primary Data It is clear from the Table 4 that among the 150 respondents, 60 per cent of respondents faced problems, while 40 per cent respondents did not face any problem. A majority of the respondents have experienced problems while undertaking online shopping. Table 5 Analyses of Problems Faced by Online Shopping Customers Sl. Problems Total Mean Standard Variance Rank No Score Deviation 1. Wrong Product Delivery 322 3.39 1.69 2.84 II 2. Deliver of damaged product 327 3.44 1.29 1.67 I 3. Time delay in delivery 279 2.94 1.47 2.17 III 4. Poor Packaging 243 2.56 1.29 1.67 V 5. Difficulties in E-payments 253 2.67 1.24 1.53 IV 6. Lack of Personalized Service 238 2.32 1.26 1.72 VI Source: Primary Data From the Table 5, we know the problems faced by respondents on the online shopping through their opinion. Delivery of damaged product is the major problem faced by the respondents followed by wrong product delivery. Poor packing of the product from the online shopping site was ranked the least. 12. SUGGESTIONS The following are the suggestions on the basis of the findings of the study: 1. The majority of the customers have faced the problem of delivery of damaged product and delivery of wrong product through online shopping. Therefore, internet online shopping companies should pay more attention to the delivery of right product, undamaged, to the customers. They should also give more attention to proper packing of the goods, especially the fragile items, to prevent damage to products before delivery. 2. The customers feel that delivery of the product takes one week or more. So, the online company should try and reduce the period of the product delivery within 2-3 days. 3. Customers should be made aware about the varied sales promotion schemes, which make this online buying more attractive and popular among the buyers. 4. Proper awareness must be made available to all persons of different occupation through effective advertising. 5. Online websites must ensure about the quality of product and right of the information to their customers. 6. Since transaction is online the customers must be ensured of web security and confidential card information. http://www.iaeme.com/IJM/index.asp 72 editor@iaeme.com
Sreejith R K 7. The online shopping could be made successful only by effecting delivery of undamaged goods with proper delivery time. 13. CONCLUSIONS This study has dealt with customer attitude towards online shopping. Online shopping is gaining popularity among people, especially, the younger generation but in today‟s scenario, it is becoming equally popular among all age groups. The study has revealed that most of the customers have favourable attitude towards online shopping irrespective of their location. At the same time, majority of the customers also face problems during online shopping. So online shopping companies should address these problems and correct them, if they want to attract more people to this field and to improve their business prospects. REFERENCES [1] VandanaAhuja, “Digital Marketing” – Oxford university press. [2] Matt Bailey, “Internet Marketing: an hour a day” – Wiley India private limited [3] Chris Treadaway, “Face Book Marketing: an hour a day” –Wiley India Private limited. [4] Jeanniey Mullen,”E-mail Marketing: an hour a day”- Wiley India Private limited. [5] Allred, R. C., Smith M.S., Swinyard, R.W. (2006),”E-shopping Lovers and fearful conservatives a Market Segmentation Analysis”, International Journal of Retail & Distribution Management, 34:4/5,308-333. [6] Kim, D. J., Cho, B., and Rao, H. R. (2000), "Effects of Consumer Lifestyles on Purchasing Behavior on the Internet: A Conceptual Framework and Empirical Validation," in Proceedings of the twenty first international conference on Information systems, Brisbane, Queensland, Australia. [Online]. Available: http://aisel.aisnet.org/icis2000/76/ [2014, Jan 22]. [7] Kim, J. (2004), „„Understanding consumers‟ online shopping and purchasing behaviors‟‟,Unpublished PhD thesis, Graduate College of Oklahoma State University, Stillwater, OK. [Online]. Available: http://digital.library.okstate.edu/etd/umiokstate- 1049.pdf [2014, Jan 22]. [8] Bhatnagar, A., &Ghose, S. (2004b). Segmenting Consumers Based on the benefits and risks of internet shopping, Journal of business research, 57(12), 1352-1360. [9] Chen,S.J., & Chang, T.Z. (2003). A descriptive model of online shopping process: some empirical result. International Journal of service industry Management, 58(6),556-569. [10] Jayawardhena C (2004), “Personal Values” influence on E-Shopping Attitude and behavior”, Internet research, Vol.14,No.2,pp.127-138. [11] Lee, GG and Lin, HF.(2005).Customer perceptions of eservice quality in online shopping. International Journal of Retail & Distribution Management,33(2), 161-176. [12] Mahmood, M.A., Bagchi, K andFord, T.C (2004),”Online shopping Behavior: Cross- Country Empirical Research”, International Journal of Electronic Commerce, Vol.9,No.1, pp.9-30. http://www.iaeme.com/IJM/index.asp 73 editor@iaeme.com
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