Advances in Economics and Business Management (AEBM)
Print ISSN: 2394-1545; Online ISSN: 2394-1553; Volume 2, Number 2; January-March, 2015 pp. 158-164
© Krishi Sanskriti Publications
http://www.krishisanskriti.org/aebm.html
Analysis of Factors Determining Consumer
Preference for E-Purchasing
Twinkle Kumar Sachchan
1
, A.K. Singh Suryavanshi
2
and Anupama Panghal
3
1
PhD Scholar, FBM Department, NIFTEM University Sonipat, Haryana
2
Prof. & Head, FBM Department, NIFTEM University Sonipat, Haryana
3
FBM Department, NIFTEM University Sonipat, Haryana
Abstract—World Wide Web has established as a multi-tasking multi-
functional element, acting as a networking source as well as
transaction source for shoppers placed worldwide. It surpasses
orthodox shopping system by promoting e-purchasing through its
direct communication features. Present paper provides a deep
insight, understanding & analysis of sundry determinant factors
guiding consumer behavior apropos to adoption of this technology.
At the same time, it will help Indian e-retailers to adjust, develop and
considerably modify their strategies as per the demand of the
consumers. Twenty seven variables were identified based on
discussions from e-commerce professionals and literature review.
Also the responses were collected through a structured questionnaire
and the targeted respondents were majorly students of Universities.
Responses so collected were examined through Factor analysis, a
statistical tool which clustered all 27 variables into 5 major factors.
The study concluded that factors like Ease of Shopping, Information
Accessibility, Self-efficacy & Trust, wide gamut of goods & value for
money majorly impact respondent's outlook for online shopping. This
study might prove extremely helpful for retailers in understanding the
consumers’ behavior.
1. INTRODUCTION
New information and communication technologies (ICTs)
bring about thoughtful and persistent influences on modern
society – influences that are developing with the constant
growth in technologies and the continuousrevival of the past
ones. In present scenario, World Wide Web has developed as a
multi-functional multi-tasking element, acting as a networking
source along with a transaction source for shoppers placed
worldwide, turning out to be leading future retailers. Essential
and basic component of e-retailing is its straight direct
communication channel. Shopping through Internet iseasier
than orthodox shopping method as it meets out the latter’s
constraints and hurdles like nervousness in new surroundings,
traffic jam, overcrowding, less parking space, limited time etc.
This has provided an alternative to customers.
In India, Internet is still used as a novel source toll between
the customers and retailers. Major proportion of an Indian
population comprises of Youngsters especially students.
Holding students as a customer on e-retail has been a
challenge for any e-retail store and how to attract, what should
be the strategy are basic questions to be addressed by new
Indian e-retailers so as to stabilize their market. Critical,
thoughtful work and focus is required in this region and the
question wants a truthful answer. Really are Indian students
ready to grip flexible, safe & reliable Internet shopping mode?
The study thus focuses on to the identification of key factors
that determines thepreference attitude of Indian students,
upcoming young consumers towards online shopping. This
study hence provides a deep insight and understanding of
consumer behavior for adoption of a new technology and also
will help Indian e-retailers to adjust, develop and considerably
modify their strategy as per the demand of the consumers.
2. REVIEW OF LITERATURE
Presently, large section of the population throughout the world
access the Internet and make considerable proportion of
transactions online (Keen et al., 2002; Xing et al., 2004;
McQuitty and Peterson, 2000), incrementing the performance
of business via electronic channelthroughout the world (Joines
et al., 2003) and affording an enormous marketing chance and
opportunity (Hoffman, 2000 ; Pollack, 1999).
According to Bakos (1991), “Exchange of information about
prices and offered products facilitates participation of buyers
& sellers through an inter-organizational system called as e-
marketing.” When we talk about Internet market, products &
services are considered as digital information and requires
information based channels for its delivery; giving a glimpse
of virtual realm termed as E-retailing (Meuter et al.,
2000).Online retailing is also defined as an electronic media
through which the consumer and the dealer enter into a
contract for sale and purchase, for the benefit of both the
parties(SangeetaSahney 2008).
Now days, Internet holds an important global level platform
forgoods and services’ trading ultimatelymaximizing the profit
in a business. The fast acceptance of the web Technology by
consumers at large to manage online has been due to
improvements incustomer characteristics, technology, and