A Qualitative Research on

ONLINE BUYING BEHAVIOR

of

APPAREL

A Consumer Behavior Research Project

Guide: Prof. Srinivasa Reddy

T. A. Pai Management Institute, Manipal

Group A3 Submission

16F132 - Jayalakshmi Sethuraman

16F133 Joveena Abreo

16F144 Pooja Banerjee

16F223 Harshal Dipak Kale

16F238 Moinak Banerjee

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Table of Contents

Introduction ............................................................................................................................... 3

Research Objectives ................................................................................................................. 5

Research Methodology............................................................................................................. 5

Secondary Research................................................................................................................. 6

Primary Research ..................................................................................................................... 7

Findings ..................................................................................................................................... 8

Information Acquisition ................................................................................................ 8

Information Processing................................................................................................. 9

Attitude Development ................................................................................................. 10

Online v/s Offline comparison .................................................................................... 11

Satisfaction Parameters .............................................................................................. 12

Conclusion .............................................................................................................................. 13

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INTRODUCTION

As of 2016, total e-tailing market accounts for $7 billion out of which the share of online fashion
retail sites is $2.4 billion. Further according to e-tailing India estimates, online fashion retail market
is expected to reach $20 billion by 2020.

The Indian apparel market over the recent years has undergone significant changes, starting from
the shift from brick and mortar stores to online retailing through ecommerce sites. The evolution
over the past two decades has been summarized in the below picture.

The online apparel industry is characterized by high growth with huge offline giants such as Tata,
Aditya Birla Group, Reliance, Arvind Mills and Raymond entering into the online retail market.
Further the niche retailers who only sell through ecommerce sites such as Red Polka, Koovs and
Myntra are expanding with increasing popularity.

Further ecommerce sites are increasing their investment on fashion retailing as it is one of the
most shopped categories accompanied by Consumer electronics, Books and Media for men and
Personal care for women. In India, the apparel category is mostly contributed by ethnic wear with
a total density of 42%. Further branded apparels are a bigger hit among the urban population who
are moving on to online shopping from brick and mortar stores. The cost of reverse logistics is

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however high since customer initiated returns is higher in the online apparel and lifestyle segment
compared to other segments.

The future for the online apparel industry will be marked by increased contribution from bigger
brands. Amazon Fashion at present contributes to 30 % of the total customers of Amazon India.
Amazon India is planning to increase its spend on the apparel category.

Alibaba is planning its entry into the Indian market. Major online retailers like Flipkart and
Shopclues are planning on launching their own private labels.

To summarize the online apparel industry is growing with possibility of increased consolidation
through acquisitions (Flipkart and Myntra, Myntra and Jabong) is going to decrease the
fragmentation in the market.

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RESEARCH OBJECTIVE

To understand behavior of consumers who transact online and identify important aspects
considered in making an online purchase

Focus of the project:

Understand how consumers acquire and process information and develop attitudes
towards online buying
Study how consumers behavior has evolved from the practices of offline buying to online
mode
Identify the consumer apprehensions and satisfaction levels of online shopping

RESEARCH METHODOLOGY

The project involved secondary as well as primary research. The secondary research was
conducted to understand the online lifestyle segmentation and how the era of online shopping in
evolving consumers behavior. The primary research involved collection of qualitative data and
rich consumer insights through in-depth interviews of consumers who purchase apparel
predominantly through online sites.

Consumer Profiles for In-depth Interview:

Gender Age Occupation Annual Household Place of Online v/s Offline Online Apparel
Income Residence Shopping Ratio Purchase Frequency
Female 30 Working 8 9 lakhs Mumbai 90:10 Once a month
Professional
Female 24 Student Above 12 lakhs Manipal 75:25 More than once a
month
Female 23 Student Above 12 lakhs Mumbai 50:50 Once in 6 months
Male 28 Working 10 12 lakhs Mumbai 80:20 Once in 3 months
Professional
Male 29 Working 10 12 lakhs Mumbai 40:60 Once a year
Professional
Male 24 Working Above 12 lakhs Delhi 90:10 Twice a month
Professional

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SECONDARY RESEARCH

According to a research by Global Perspective on Retail: Online Retailing, it was found that the
process of online shopping behavior includes five steps:

1. The consumer identifies their need for a particular product apparel in this case.
2. He/ She refers to the Internet for more information about the product.
3. He/ She compares prices with other competitors to evaluate different alternatives
4. He/ She makes a purchase decision where she settles for a product or a brand. This step
is followed by the actual purchase.
5. The buyer will evaluate the adequacy of the product/brand in terms of her original needs.
This influences the future buying behavior and decisions of the person.
Through secondary research, we also identified the various segments of online consumers that
helped us in understanding the behavior the respondents portray for online shopping.

Online Lifestyle Segmentation

The different types of lifestyle segmentation in Online Marketing are as follows:

- Click and Mortar: This category of consumers only shop online for research and
gathering information and then go back to the physical stores to compare the price and
quality and make their final purchase there.
- Hunter Gatherers: They love going online and visit different websites to enjoy the thrill
of auctions and bargain hunting
- Brand Loyalists: Although they love online shopping but they dont use online platform
to explore varieties or new avenues. They only visit websites for brands with which they
are comfortable with and make their purchase for those specific products
- Time Sensitive Materialists: They use internet or the online platform only to gather
information and news or to check on the stock market. They dont explore Online
shopping options at all.
- Hooked, online and Single: Most of the young generation belong to this category
where the dependency on the Online network is huge be it shopping, news gathering,
research, social media etc. This category is extremely tech proficient and usually
comprise of teens, college goers and the youth.
- Ambivalent Newbies: This category is not technologically proficient and hardly use the
internet as they are not tech savvy and prefer the offline mode for most of the purposes.

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PRIMARY RESEARCH

The in-depth interview focused on gaining rich consumer insights for each research objective.
The questions were directed to receive deep understanding on the process followed by the
consumers in online purchasing.

In-depth Questions:

Offline:

How often do you shop for apparel? Online v/s offline (100%)
Where do you generally go for offline shopping? What do you like and dislike about
offline shopping? (Malls/Street)
How do you come to know about the places to visit for shopping offline?
In what situations do you prefer shopping offline? (Travelling, occasion based)
How do you come to know about the discounts or sale in malls/retail stores?
Are you loyal to a particular retail shop? Why?
What and who influences you to shop offline?
Do you go with any companion while shopping offline? Who?
What factors influence your purchasing decision?

Online:

Do you shop online? How frequently?

How do you come to know about a particular shopping site?
How do you come to know about the offers available online?
Do you browse on websites or download apps for apparel shopping?
At present, how many online shopping apps do you have on your phone?
How often do you open these apps?
What kind of apparel do you shop for online? For what occasions?
What are the factors that worry you about online shopping?
Have you faced any issues while shopping online? How was it addressed?
Do you order from online brand stores or eCommerce sites?
Do you indulge in repeat purchase from a particular site or does it depend? If yes, on
what factors?
How much do you generally spend on apparels when you shop online?
What is the maximum time you are willing to wait for receiving the ordered apparel?

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 What kind of apparel would you avoid purchasing online?
When you shop online do you seek for anybody's approval?
Do you shop online only for yourself or for others as well (gifts) On what occasions?
How do you decide on which site to purchase from during sale period?

Comparison:

How would you rate your experience of offline shopping v/s online shopping?
What is that online shopping offers you but not offline shopping and vice versa?
How much do you generally spend on apparels when you shop online and offline?
What is the maximum amount you would spend for a particular transaction online and
offline?
Have you observed any difference in the quality of apparel purchased - offline v/s
online?
What is your preferred time of shopping offline and online?
List 3 reasons why you shop online as compared to offline?

FINDINGS

The responses were analyzed to extract insights on how consumers acquire and process
information, how they develop their attitudes towards online shopping and what are the
apprehensions and satisfaction levels.

1. Information Acquisition

The respondents are exposed to marketing communication from the online e-commerce sites
and brand stores through various modes of advertising Hoardings, Blogs, Social Media
Advertisements, TV Advertisements and Newspapers.

The most important source of awareness mentioned by all the respondents was Word-of-Mouth.
The first-hand experience account from friends and relatives play an important role in
influencing the respondents choice of online site. Respondents mentioned that they feel more
comfortable with seeking information through apps which can be accessed at any point of the
day. Also, the app provides a good user experience with friendly design and interesting content.

Once the information of online e-commerce sites is acquired by the respondents, the evaluate
the brands on various parameters.

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 Price: Respondents evaluate prices offered on multiple e-commerce before making the
final purchase. 2 out of 6 respondents stated that they add the apparel in their cart so
that they receive notifications on price drop. Also, 1 respondent mentioned that she
indulges in bulk shopping in order to avail a higher price discount.
Availability: 2 respondents mentioned that they use the filter of size availability in order
to avoid disappointment post selection. If the size for the desired apparel is unavailable,
they switch on the notification for the same. They also look for the same apparel on
different e-commerce sites and compare for price as well.
Delivery Time: 3 respondents mentioned that delivery time of 7 days is the maximum
time they can wait for they purchased apparel to be delivered. 2 respondents mentioned
that 3-4 days is the maximum, while 1 respondent measured that he prefers 1-2 days
delivery and has hence availed the prime membership service of one of the e-commerce
sites.
Mode of payment: 1 respondent mentioned that she prefers Cash on delivery mode of
payment as she cannot trust the final delivery of products number of products, quality,
etc. and hence feels secure to select the cash on delivery option.
Return Policy: As return policies have been made flexible by multiple online portals, the
respondents do not feel this service as a differentiation for the sites chosen.

One of the important factors for choosing a particular product online also depends on the
understanding of size charts. The size chart given is usually UK/USA sizes and hence the
respondents find it difficult to comprehend the information.

2. Information Processing

The respondents were asked questions specific to their behavior in the time of sale season. The
responses were categorized into 3 steps of information processing:

i. Exposed to Information In this phase, the respondents are exposed with

information about the sale from multiple online portals. E-commerce sites like
Amazon, Snapdeal, Flipkart and Myntra heavily advertise on TV starting one week
prior to the sale. This is also backed with push notifications on the phone as well as
sale previews on the app.
ii. Attend to Information In this phase, the respondents evaluate the offers
promised by the online portals and decide on the brand to finally go ahead with. An

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 interesting finding was that the respondents discuss the evaluation process with
their colleagues and friends in order to arrive at a final decision.
iii. Comprehend the Information The respondents look for the best deals on the
selected online portal and add their choice of apparels to the cart before the sale.
Speed of checkout is one of the factors that gives the respondent the final deal as
mentioned by 2 respondents.

Attend
I am bombarded with I select the websites that will
announcements of give me the best deal and put
sale through social I look online for apparels in the cart in
media more information advance
on the sale

Expose Comprehend

3. Attitude Development

The attitudes development of the respondents can be understood with the Cognitive-Affective-
Behavioral/Conative model.

In the cognition stage, the respondents learn about the various online portals, the deals offered,
availability of size, etc. The respondents highlighted the following factors as the important
learning points:

Most convenient option

Easy to compare
Reliable
Discounts

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In the affective stage, the respondents form positive and negative emotions towards online
buying. Some of the key insights received are as follows:

Positive
o I like to shop online because I can do it at any time of the day.
o I can compare the product on various sites and look for a cheaper deal.
o I save up on my Travelling cost.
o Window shopping acts as stress reliever

Negative
o Will the size fit me?
o Will it look the same?
o A girl cannot bargain!

In the conative stage, the respondents form their intention to buy. Some of the reasons why they
form these intentions are as follows:

o I purchase more to be eligible for a good offer online

o I am getting a one-day delivery
o Easy Return Policy Pickup and Money back in my account

Comparison between online versus earlier practices of offline shopping

Offline Shopping used to be a day out with our friends, this used to be a Social Hangout
for respondents
With online shopping, the consumer does not have to try out clothes which might have
been tried by somebody else
The consumer prefers to buy traditional clothes offline during festivals because the fitting
is not as per Indian sizes
The consumer wouldnt risk buying apparels online greater than Rs. 3,000.
Offline shopping allows consumers to bargain for a product whereas online shopping
gives you deals but doesnt give the consumer the power to bargain (Street Shopping)
Offline shopping will be done specifically in the evenings but online shopping can be
done at any time of the day
Consumers do not prefer to buy gifts online

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Men and Women Difference

With growing popularity of online shopping, the difference in the behavior of male and female
consumers is narrowing down. They both seek for convenience, variety and interesting format of
shopping for apparel. However, deeper questioning of respondents led us to derive the following
difference.

Return rate of products is higher in women The female respondents mentioned that
they are mostly picky about their fashion style and hence if a particular apparel has a
difference in size fitting or appearance, they prefer returning the back. On the other
hand, the male respondents would prefer to ignore such differences unless they are of
great extent.
The female respondents do not want to lose track of their pick and hence create Wish
lists of the apparels they like. They also wait for the next sale period to check if that
particular apparel can be purchased at a discount. However, male respondents prefer to
purchase the desired product in the first instance.

Online shopping was consistently rated high for the following reasons -

1. Convenience Wide variety with 24 X 7 availability

2. Time saving Different categories of apparels accessible from the same site

Hence, shoppers look for following performance factors in an apparel site or app while shopping
online:
Usability
- Context: A websites use of text, fonts, sounds, music, video demonstrations to
convey a theme or help convince customers to purchase.
- Communication: A website can allow communication between the company and the
consumer, some sites use live chat capabilities, others use a message board or
email.
- Community: Some websites will allow customers to talk to each other via message
boards or leave comments about products.
- Customization: A website can be customizable by the customer and tailor itself to
different users. Amazon.com makes personal recommendations based on past
purchases. Some gaming websites will allow the user to choose to see information on
only the games they own.

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 Credibility
- Security: Return and exchange policies, multiple delivery options and safe modes for
transaction.
- On-time Delivery: The delivery of purchased product as per the promised timeline.

Service Quality
- Customer Service: The online portal should provide prompt customer service to the
consumers for a high satisfaction level.
- Courtesy Call: The respondents also expect a courtesy call from the delivery person
so that it provides the customer convenience.
- Live Tracking: The respondents also appreciated the value-added service of live
tracking provided by some of the e-commerce websites.

CONCLUSION
Through the research, we conclude that consumers look for Convenience, Usability, Credibility
and Service quality are the important aspects for satisfaction.

It was also found that although research shows that consumers prefer to try products offline and
then purchase the same online at a price discount, the respondents differed from this insight.
They prefer online shopping for the convenience it offers as compared to offline shopping. They
also highlighted that the return policies make it easier for them to take the risk of ordering the
closest size thus eliminating the need for offline purchasing.

Some factors that impede the consumers from offline shopping can be identified through the
research as no social contact, no bargaining power and intangibility of product.

Thus, with consistent service quality delivery and great design & bargain deals, online shopping
portals can make the customers brand loyal.

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