Data Analysis and Decision Making

“Changing Consumer Behaviour after the Introduction of

E-Commerce Platforms”

Final Report

IMT-Dual Country Program

Section B - Group 5

Group Members:

1. Aastha Tulsyan - 190201002

2. Akash Chauhan - 190201008
3. Eshan Kapania - 190201035
4. Shivam Garg - 190201096
5. Vikash Kumar – 190201123
 TABLE OF CONTENTS

SECTIONS

1. Background Page No.

1.1 Title…………………………………………………………………… 1
1.2 Objective………………………………………………………………. 1
1.3 Background Story……………………………………………………… 1
1.4 Marketplaces Emerge…………………………………………………… 1
1.5 Online Payments Evolve………………………………………………… 2
1.6 Mobile Expands…………………………………………………………. 2
1.7 The Road Ahead………………………………………………………… 2
1.8 Problem Definition……………………………………………………… 3
2. Qualitative Analysis
2.1 Methodology…………………………………………………………… 4
2.2 Transcripts………………………………………………………………
2.2.1 Focus Group Discussion……………………………………… 4-8
2.2.2 In-Depth Interviews………………………………………….. 8-12
2.3 Results………………………………………………………………….. 13
2.4 Research Framework…………………………………………………… 14
3. Quantitative Report
3.1 Research Questions……………………………………………………… 15
3.2 Questionnaire…………………………………………………………… 15-18
3.3 Sampling and Data Collection………………………………………….. 18
3.4 Data Analysis and Inferences…………………………………………… 19-31
4. Conclusion………………………………………………………………….. 32
 TABLES

1. Research Question 1 Page No.

1.1 Table 1.1 – Model Summary…………………………………………. 21
1.2 Table 1.2 – Anova……………………………………………………. 21
1.3 Table 1.3 – Coefficients………………………………………………. 21

2. Research Question 2
2.1 Table 2.1 – Model Summary………………………………………….. 22
2.2 Table 2.2 – Anova…………………………………………………….. 23
2.3 Table 2.3 – Coefficients………………………………………………. 23
2.4 Table 2.4 – Model Summary………………………………………….. 23
2.5 Table 2.5 – Anova……………………………………………………... 24
2.6 Table 2.6 – Coefficients………………………………………………. 24
2.7 Table 2.7 – Model Summary………………………………………….. 24
2.8 Table 2.8 – Anova……………………………………………………… 25
2.9 Table 2.9 – Coefficients………………………………………………… 25

3. Research Question 3
3.1 Table 3.1 – Model Summary……………………………………………. 26
3.2 Table 3.2 – Anova……………………………………………………….. 27
3.3 Table 3.3 – Coefficients…………………………………………………. 27
3.4 Table 3.4 – Model Summary…………………………………………….. 27
3.5 Table 3.5 – Anova……………………………………………………….. 28
3.6 Table 3.6 – Coefficients…………………………………………………. 28

4. Research Question 4
4.1 Table 4.1 – Group Statistics………………………………………………. 29
4.2 Table 4.2 – Independent samples tests……………………………………. 30

5. Research Question 5
5.1 Table 5.1 – Group Statistics……………………………………………….. 30
5.2 Table 5.2 – Independent samples tests…………………………………….. 31

6. Research Question 6
6.1 Table 6.1 – Group Statistics……………………………………………….. 31
 6.2 Table 6.2 – Independent samples tests…………………………………….. 32

7. Research Question 7
7.1 Table 7.1 – Paired Sample Statistics………………………………………. 32
7.2 Table 7.2 – Paired Sample Correlations…………………………………… 32
7.3 Table 7.3 – Paired Sample Test……………………………………………. 33

8. Research Question 8
8.1 Table 8.1 – Average of Ranks……………………………………………… 33
 1. BACKGROUND

1.1 Title:

Changing Consumer Behaviour after the Introduction of E-Commerce Platforms

1.2 Objective:

To Observe, Survey and Analyse the changing trends in the Consumer preferences towards Retail stores
and E-Commerce Platforms.

1.3 Background Story:

By definition, ecommerce or electronic commerce, is the buying and selling of products or services via
the Internet. The history of ecommerce started 40 years ago and, to this day, continues to grow with
new technologies, innovations, and thousands of businesses entering the online market each year.
Electronic Data Interchanges and teleshopping in the 1970s paved the way for the modern-day
ecommerce store. Paving the way for electric commerce was the development of the Electronic Data
Interchange (EDI) – It replaced traditional mailing and faxing of documents with a digital transfer of
data from one computer to another. Once an order is sent, it is then examined by a VAN (Value Added
Network) and finally directed to the recipient’s order processing system. EDI allowed the transfer of
data seamlessly without any human intervention. The history of ecommerce is closely intertwined with
the history of the internet. It was apparent from the beginning that B2B online shopping would be
commercially lucrative but B2C would not be successful until the later widespread use of PC’s and the
World Wide Web.

Online shopping only became possible when the internet was opened to the public in 1991 Amazon.com
was one of the first ecommerce sites in the US to start selling products online and thousands of
businesses have followed since. (The convenience, safety, and user experience of ecommerce have
improved exponentially since its inception.)

1.4 Marketplaces Emerge:

From the mid-nineties there were major advancements in the commercial use of the Internet - One of
the first ecommerce sites was Amazon which launched in 1995 as an online bookstore and has grown

1
to be the largest online retailer in the World. Amazon had an advantage over other Physical Retail Book
Stores as those were limited to about 200,000 titles and Amazon, being an online only store, without
physical limitations was able to offer exponentially more products to the shopper. Other ecommerce
marketplace success stories include Ebay, an online auction site that debuted in 1995 and Etsy, which
launched in 2005 and by Q2 2018 saw gross merchandise sales total $901.7 million globally.

1.5 Online Payments Evolve:

As more and more people began doing business online, a need for secure communication and
transactions became apparent. In 2004, the Payment Card Industry Security Standards Council (PCI)
was formed to ensure businesses were meeting compliance with various security requirements.

The organization was created for the development, enhancement, storage, dissemination and
implementation of security standards for account data protection.

1.6 Mobile Expands:

In 2001, Amazon.com launched its first mobile commerce site. Mobile commerce gained speed over
the next two decades, as more users purchase from the palm of their hand. Both consumers and business
buyers turn to mobile devices for product research and coupons, with engagement through social media
becoming increasingly popular.

1.7 The Road Ahead:

Buyer Preferences Driving Rapid Disruption: - What will shoppers want next? That’s what merchants
online and off are trying to figure out. For online merchants, the Holy Grail is to find where they have
a genuine advantage over brick-and-mortar stores. For example, new online product visualizers can
showcase products in a variety of real-life situations on platforms like mobile and laptops along with
traditional advertising platforms. To be successful, sellers need to monitor comments and listen to
what shoppers say about their products and customer service. A site with an outdated design
communicates outdated processes and products which will not attract Millennial buyers. The only thing
that is certain is that more change is on the horizon. Your online store needs to be flexible enough to
adapt to the changes.

2
1.8 Problem Definition:

 Management Decision Problem: How do the E-Commerce companies plan to increase their
Profit Margins without compromising on the Quality of Goods and Services (Brand Value)?

 Research Problem: What factors will influence existing customers to buy more products
online?

3
2. QUALITATIVE REPORT

2.1 Methodology:

Our target population is the regular and potential online buyers from different e-commerce websites.
We have therefore started with screening questions and formed a group of 10 respondents who were
chosen randomly, 6 respondents satisfying the criteria were chosen for Focused Group Discussion. To
choose the respondents we have used one of the Non-probability sampling techniques, i.e. the
Judgemental Sampling. The chosen respondents belong to the IMT-DCP batch belonging to different
states across India. It has been done so as we require diverse opinions from people belonging to different
geographical locations.
From the respondents, we have tried to gather qualitative data using structured and semi-structured data
collection methods:
Under structured data collection method, we have used FGD which consisted of pre-defined questions
being asked to the respondents and recording their response.
For the semi-structured data collection, we have Conducted In-Depth Interview to accumulate
information regarding e-commerce in a wider prospective. It allows the interviewer to improvise and
provide a deeper understanding of consumer behaviour regarding e-commerce.
After conducting the interviews, we prepared the transcripts for both the FGD and in-depth interviews.
From the transcript, we got an idea of what our prospective variables can be. Further, we identified how
the key words relate to our variables. The similar keywords have been placed under one variable
(bucketing).
In conclusion, a research framework has been provided.

2.2 Transcripts:

2.2.1 Focused Group Discussions:

Moderator: Hi, good evening everyone. I'm A, we've gathered here today for a focus group discussion.
The focus of this discussion is to analyse changing consumer preferences towards online shopping. This
will help us understand how the trends are changing towards e-commerce and what steps can be
implemented through customer satisfaction and shopping online. There are some guidelines that I would
like you all to follow: maintain the decorum at all times during the discussion, there is no right or wrong
answers and you can put forward your opinions freely. One more thing is that we will be recording your
responses to which verbal consent has already been taken and the language of communication is

4
preferably English. We will start with a short introduction of the speakers…now let’s continue with the
discussion.

Moderator: The first question that I would like to ask, do you all buy online products?
Speaker 1: Yes
Speaker 2: Yes
Speaker 3: Yes
Speaker 4: Yes
Speaker 5: Yes
Speaker 6: Yes

Moderator: How often you buy online products?

Speaker 1: Once a month.
Speaker 2: Once a week.
Speaker 3: Once in two weeks.
Speaker 4: Once a month.
Speaker 5: Once in 2-3 months.
Speaker 6: It’s highly situational that when I need what maybe sometimes twice or thrice a week and
sometimes maybe once a month

Moderator: Okay, so when So do you have any influence on buying online because your friends and
relatives are buying online or is it your own prerogative?
Speaker 1: Own prerogative.
Speaker 2: You know sometimes it's influenced by other people as well, if there is something that they
like and they recommend it to you so you also end up buying it.
Speaker 3: Sometimes some people offer discounts on some products so that’s the reason
Speaker 4: Some products are not available in the stores as I said out stock or something So we buy in
that situation.

Moderator: So what type of items do you buy online, is it apparel or is it utility items? What is it?
Speaker 1: Mix of everything.
Speaker 2: All kind of items.
Speaker 3: Apparels.
Speaker 4: Electronics.
Speaker 5: Everything.
Speaker 6: Utility.

5
Moderator: What are the main factors that induce you to buy online rather than from a retail store?
Speaker 1: Offers and discounts.
Speaker 2: Convenience.
Speaker 3: Saves time.
Speaker 4: I would say that laziness is one of the key factors that I wouldn’t want to go out and plus
the offers are also an incentive to buy online.
Speaker 5: Fast delivery, you don’t have to go out and waste your time
Speaker 6: Mainly offers and discounts.

Moderator: Okay, so are you satisfied with the quality of products that you purchase online?
Speaker 1: Yes
Speaker 2: Mostly yes
Speaker 3: I would say yes because I don't prefer apparel that much because I don't get to wear them
and I don't agree with the return policy so yeah, I'm mostly satisfied with what I have because I know
that those things will fit.
Speaker 4: Mostly I think I'm pretty satisfied but in case you don't like you can always return it, so
that’s a plus point.
Speaker 5: No, I’m not, once I bought a perfume from online store and it turned out to be a fake product,
major websites like Amazon, Flipkart they also send you fake product.
Speaker 6: For me online shopping is very beneficial because I recently bought a speaker online for
450 AED which on off-line store was 750 AED. So, the price is very much less online and also the
delivery that you get is very fast. So, it is way more convenient.

Moderator: So, you are convinced about authenticity of the products that you purchase online?
All Speakers: most of the time

Moderator: So, have you ever faced a situation where you had to return a product which is purchased
online?
Speaker1: Multiple times.
Speaker 2: A couple of times out of all my experiences because I do select my products very carefully
and look into it before buying it.

Moderator: What all websites you use for online purchases?

Speaker 1: Amazon
Speaker 2: Myntra
Speaker 3: Jabong

6
Speaker 4: Amazon & Flipkart
Speaker 5: Snapdeal
Speaker 6: Amazon

Moderator: Do you think there is more variety online or in retail stores?

Speaker 1: Online
Speaker 2: Online
Speaker 3: Online
Speaker 4: There are different kinds of stores, like small stores ad large stores, and you may not have
the time to visit all of them to check out. So, you can see the product online and then you can choose
whether to buy it online or offline.
Speaker 5: I would say it is very situational like he said that some stores might have a good stock of
something and online the stock might not be there. So, it actually varies on the product whether the
stocks are available in the stores or not.
Speaker 6: More variety online.

Moderator: So do you read & write reviews product?

Speaker 1: If I have a bad experience, then yes, and if it’s a good experience then I don't care.
Speaker 2: No
Speaker 3: Don’t actually care about reviews.

Moderator: So what are the main factors are actually prevent you from buying online?
Speaker 1: I think I always feel authenticity and price can prevent sometimes from buying online.
Speaker 2: Sometimes online shopping is more expensive than offline.

Moderator: How do you think online shopping experience can be improved?

Speaker 1: More emphasis on customer support and making faster deliveries.
Speaker 2: Also, there should be an emphasis on adding more units to customer support. Like, there
are times when we want to speak to customers support and we have to wait for like 10-15 minutes,
which is agonizing.
Speaker 3: Improving user interface.
Speaker 4: I would say having more authentic products can lead to more trust in the consumer. And
thereby it can lead to consumer shopping freely online.

Moderator: Okay, so once you started online shopping, do you think that you started shopping more
than before?

7
Speaker 1: There is a convenience factor, but it depends from person to person, if I feel I need to buy
what I need, then I strictly stick to my needs. And I don't overspend or overshoot my budget at times.
Speaker 2: Yes, as there is a convenience factor associated.
Speaker 3: Yes, it has increased drastically.

Moderator: Do you actually feel that due to the discounts and offers which are given online, they are
cheaper than retail market?
Speaker 1: During sale season all prices are the same in both cases. So it doesn't take much of a
difference.
Speaker 2: There is a major difference in price at times. So it does make a difference.
Speaker 3: We can say that during the sale period when all the stores, be it online or offline, are having
discounts, there are equal discounts being offered at times. So yeah, a person has to know when to buy
what. So smart shopping is required.
Speaker 4: I think throughout the year, you get huge discounts online, rather than in the case of offline
shopping.
Speaker 5: At times you'll find that Amazon or Flipkart is giving offers like big billion day. Actually
these are very much helpful for customers to get some decent products at very cheap rates.

Moderator: Okay. Thank you so much for participating in this discussion. And your inputs are really
valuable to us. In conclusion, I would like to ask do you think any critical topic that we left out and you
would like to add something?
Speaker 1: No, I think all the topics were covered.
Speaker 2: This topic is very general and sticks to the point. So, yeah, we've made it quite clear and I
don't think there is any more to add on to that.

Moderator: Okay. Thank you.

2.2.2 In-Depth Interviews:

Interviewer: So, the first question is, do you know about online shopping?
Speaker: Yes, I know about online shopping.

Interviewer: What do you know about online shopping?

Speaker: Online shopping - The first thing that comes to my mind is convenience. So I can buy
products, before buying, in fact, I can you know go through the wide range of products sitting at my
home office, or anywhere else.

8
So, it is basically shopping on the go - it has simplified the process quite substantially.
And I would say that if I'm buying something offline - So I would have to go to, let's say, 10 retail stores
for different types of products , but online - within 10 minutes, I can look at 10 different websites or
within a single website also I can look at 10 different pages for those products.
So, I think that is the biggest benefit.

Interviewer: So, do you prefer online shopping or retail shops?

Speaker: I prefer a mix of both - Like if I have to buy clothes or shoes, I would still prefer going to the
retail shops , but if you have to buy products like books or electronic items, or for that matter utility
items like maybe some cooking utensils or you know things of daily use as well as variety of sports
equipment also that I would prefer online because I think you get really good discounts as well.

Interviewer: So, are you aware of the various offers on online shopping?
Speaker: Yes, Especially the big the big ones like they have the Diwali offers of Amazon and Flipkart
and they advertise quite a bit.
But the issue with these offers is that because so many people are buying simultaneously it is very
difficult to avail those offers. Other than that – some offers are always there where you can get 10 to
20% off as compared to the Diwali and New Year offers where you can get a good 50 to 60% discount.

Interviewer: So, how often do you shop online?

Speaker: I would say twice a month.
Interviewer: - Ok

Interviewer: Do your Friends and Family influence you to buy Online?

Speaker: Oh yes, totally – Actually, most of my colleagues are quite a bit into Online shopping. Even
when they're not shopping, they would be just browsing through all the offers online. With the
emergence of new start-ups in the E-Commerce space – Social Media platforms like Instagram and
Facebook are being extensively used by them for advertising, branding and marketing. Even the big
players like Amazon and Flipkart use social media platforms to market their new launches and
collections. So even if you are scrolling through, let's say twitter, or maybe going through your
notifications on Facebook - I still get to see a host of offers and paid advertisements. So Yes, that's a
big influence.

Interviewer: Do you prefer buying apparel or utility items?

Speaker: I would say I am more inclined towards utility items, and less towards apparels when it comes
to online purchases.

9
Interviewer: What are the main factors that induce you to buy online than from a retail store?
Speaker: I think one of the first factors will be the convenience. Second, I would say the range of
discounts that you get. Thirdly, I feel there is a very good return policy which can be trusted upon and
also the fact that most of the online portals offer Cash On Delivery option , So even If I am concerned
a little bit about the authenticity of the website or delivery , I can still buy the product but I won't be
paying prior to receiving the product at my doorstep through credit card or debit card or online banking
but would pay only at the Time of Delivery.

Interviewer: Okay, so how satisfied are you with the quality of products purchased online?
Speaker: I would say around 90% satisfied.
However, I had a Bad experience when I ordered a pair of shoes and had ordered them from a new
online shopping portal and did not have the Cash on Delivery option .
Basically , I prefer purchasing online but we have to be a little bit more careful as compared to the
offline shopping – For example , If you're buying offline - you can still go to a small shop which is like
unbranded and gain trust of the product by trying it out but on the online portal - It is very important to
see whether it is an established Company .

Interviewer: Are you convinced about the authenticity of the products purchased online?
Speaker: More or less yes, I am convinced.

Interviewer: Okay. Have you ever faced a situation where you had to return or exchange a product
which you purchased online?
Speaker: Yes, Just a couple of months back. I had ordered four books from Amazon for which I paid
online through debit card option and they delivered only three books to me – So, It was like an
incomplete order situation – I contacted their Customer support staff who were very helpful and
courteous – They gave me the option whether I wanted a refund or if I wanted the book to be delivered
within a week without any extra cost. I chose the Book delivery option. I liked the flexibility in their
refund policy.

Interviewer: How would you rate this experience of yours?

Speaker: On a scale of one to ten, I would rate it around 8.5. The reason I have not given it ten on ten
is because I still had to wait one week for my undelivered book and I was hoping that they could have

10
delivered it in a couple of days without me having to pay extra as the fault of non-delivery of the
purchased book lied at their end .

Interviewer: Do you think there is more variety online than in retail stores?
Speaker: I think I would rate them equally because if you go to big retail stores like A Westside or A
Pantaloon – They have a good range and variety of products. Similarly, Online shopping has a lot of
variety but there is a good chance you might get lost if you are not aware of what you are looking for
whereas offline you know - If you see a product like clothes you can try it or otherwise if you see some
utility product you can ask somebody to explain its features – So , Offline shopping helps you streamline
what you want to buy and in that sense it is more convenient . However, Online shopping has no other
extra costs associated with it such as Transportation Costs, Cost of Fuel and Cost of parking which
makes it more economical than physically going to a retail outlet for shopping.

Interviewer: Do you read reviews before buying products online?

Speaker: Yes, but mostly I read reviews which are given on that website.

Interviewer: Do you provide any feedback or reviews after making an online purchase?
Speaker: Oh, yes. I'll just give you an example – In my experience with Amazon, I was very happy
with their helpful and quick customer service and so I give them quite a good review. And when I was
dissatisfied with the quality of shoes that I bought a couple of years back – So, I gave a detailed Negative
review.

Interviewer: What are the main factors that will prevent you from buying products online?
Speaker: I think one would be delivery time, Second would be a minimum amount cap that forces me
to buy more products if I want free delivery.
I am not very comfortable buying Luxury items like Watches, Perfumes, High End Clothes etc Online
without trying them on.

Interviewer: So, do you feel that you have started spending more on shopping ever since you started
shopping online?
Speaker: Little bit Yes - I think around 15 to 20% increase annually.

Interviewer: So, do you think online shopping is cheaper than the retail markets in terms of the
discounts and offers that are going on in the online business model?
Speaker: Yes, it is cheaper and I think the main reason for that is that the online markets don’t have
any commercial stores/shops and keep all their products in their inventories and directly ship their

11
products from there - So that is one big factor. Overall if I say, I think my whole budget allocated to
shopping has gone up and 70% of my products I buy online and the remaining 30% I buy offline.

Interviewer: In your opinion, how can online shopping experience be improved?

Speaker: I am not sure how feasible it would be but if there is an option where you know you can pay
some rent or some small amount and you can have sales persons Coming to your house and for example
help in trying out products like shoes after you have selected two to three pairs of shoes - If you buy
them then there is no extra cost but if you choose not to buy anything, then you have to pay a minimum
amount for them coming to your house transportation and logistics cost .
I would still say there are only two to three big players online like Amazon, Flipkart and Alibaba – I
hope in the near future more such big e-commerce companies are established that would give the
Consumers more options and encourage them to buy more. For example,
If I'm looking for a particular brand and it is not there on Amazon or Flipkart then in the current scenario,
I would have to go to the retail stores.
One more thing I feel is that they should have a more Flexible Delivery Strategy. For Example - So
many times what happens is that if you are not at home, they would perhaps only come once to deliver
- if I'm out of town and not available at the time of delivery In that scenario, I have to again, come back
and again order that product. So that is one thing if they can be more flexible, maybe they can contact
the customer before they ship the product - Just A Confirmatory call would be helpful.

Interviewer: Do you have any last-minute input to share?

Speaker: I think Offline retailers can compete with Online websites as well by coming up with
strategies pertaining to Cost cutting such as : - Setting up shops in places where rents are less , optimal
utilisation of raw materials and coming up with innovative designs and new product lines .
From an Online Market perspective – I am looking forward to more players coming in and offering
items like Medicines , Groceries , Books etc at affordable rates as well as venturing into Luxury products
and coming up with Smart strategies for their Marketing and Sale .

Interviewer: Okay, Thank You.

Speaker: Thank You.

12
2.3 Results:

Price Factor:
 Discounts and Offers: Discounts help customers buy more products online. Customers also
believe that more offers are available online than in retail stores.
 Budget: Since products are offered at lower prices online, the leftover budget can be used
elsewhere.
 Prices during sale period: During sale period or during festive season, online retail offers
greater discounts and offers than offline stores.

Quality:

 Authenticity: Customers are concerned about the authenticity and quality of the products, and
this is a major factor that prevents customers from buying online.
 Fake products: Since the products are not physically available while purchasing, a lot of fake
products can be sold online that ruins the customer’s shopping experience.
 Building consumer trust: High quality products will ensure customer loyalty towards online
shopping.

Customer Support System:

 Faster delivery: Customers are often curious and also at times urgently need the products.
Thus, faster delivery is necessary.
 Better return policy: Convenience of returning the products majorly affects the customer’s
decision to buy online.
 Bette user interface: The online shopping interface should be updated and user friendly.
 Product reviews: The shopping website should update honest reviews of the product so that
the customer can take an informed decision regarding the product.

Variety:

 More Designs: The customers can get more designs of various products which are not readily
available offline.
 Existing and new brands: Certain brands which are not available offline, providing great deals
and products, also lure customers towards online shopping.
 Wide range of products: Without going to different physical retail markets, all products such
as apparel, electronics, food items and other utility items are now available online.

13
Convenience:

 Laziness: At times, consumers are lazy to physically go and buy the items. Hence, these can
now be purchased at the click of a button.
 Saves time: Online shopping is convenient because it saves time of the consumers which can
be utilized elsewhere.
 Stockout in physical stores: Sometimes, a particular product may not be available in physical
stores but available online. So, it is possible for the customers to buy it on time.

2.4 Research Framework:

Dependent Variable: Online Purchasing Decision

Customer
Quality Support
System

Online
Purchasing
Decision

Price Factor
Convenience

Variety

14
3. QUANTITATIVE REPORT

3.1 Research Questions:

1. Out of the 5 Independent Factors – Price, Quality, Customer Support System, Variety and
Convenience – Which factor is the Most Important to Influence Customer’s Online Purchasing
Decision and what is the least important?
2. Are the factors different for consumers belonging to different age groups?
3. Are the factors different for consumers belonging to different genders?
4. Do consumers in the Age group of 20 to 25 give more importance to consumer reviews than
those in the age group 31 to 40 before purchasing a product online?
5. Do Women online buyers give more importance to variety than Men?
6. Are less frequent online buyers more concerned about Economic benefits as compared to
frequent online buyers?
7. Does for female buyer’s product quality more important that customer support system.
8. Which are the most important factors for consumers and which is least important.

3.2 Questionnaire:

1. Which age group you belong to?

A. 20-25
B. 25-30
C. 30-40
D. More than 40

2. What is your gender?

A. Male
B. Female
C. Others

3. Rank the following factors that drive you to buy online in terms of Preference? (1 being the
highest and 5 being the lowest preference)
A. Price Factor
B. Quality
C. Customer Support System
D. Variety

15
 E. Convenience

4. What is your Frequency of buying online?

A. Once a Week
B. Once a Month
C. Once in 6 Months
D. Others

5. How big a role does discount and offer play in your online purchase decision?
1 (Not at all Important)
2 (Less Important)
3 (Moderately Important)
4 (Important)
5 (Very Important)

6. How often do you stick to a budget while shopping online?

1 (Never)
2 (Rarely)
3 (Sometimes)
4 (Mostly)
5 (Always)

7. How Convinced are you about Product Authenticity while buying Online?
1 (Not at all convinced)
2 (Somewhat convinced)
3 (Moderately convinced)
4 (Almost Convinced)
5 (Fully convinced)

8. On a scale of 1 to 5, how important do you think is the quality of the product in developing the
trust of the consumers?
1 (Not at all Important)
2 (Less Important)
3 (Moderately Important)
4 (Important)
5 (Very Important)

16
9. How important are product reviews to you while purchasing online?
1 (Not at all Important)
2 (Less Important)
3 (Moderately Important)
4 (Important)
5 (Very Important)

10. How important is the return policy to you while purchasing online?
1 (Not at all Important)
2 (Less Important)
3 (Moderately Important)
4 (Important)
5 (Very Important)

11. How important is the time of delivery while purchasing online?

1 (Not at all Important)
2 (Less Important)
3 (Moderately Important)
4 (Important)
5 (Very Important)

12. How often do you buy from brands which are only selling online?
1 (Never)
2 (Rarely)
3 (Sometimes)
4 (Mostly)
5 (Always)

13. On a scale of 1 to 5, how important is the range of products while taking the online purchasing
decision?
1 (Not at all Important)
2 (Less Important)
3 (Moderately Important)
4 (Important)
5 (Very Important)

14. How often have you encountered a stock-out in physical stores that led you to buy online?

17
 1 (Never)
2 (Rarely)
3 (Sometimes)
4 (Mostly)
5 (Always)

15. How convinced are you that online shopping saves you more time than traditional shopping
means?
1 (Not at all convinced)
2 (Somewhat convinced)
3 (Moderately convinced)
4 (Almost convinced)
5 (Fully convinced)

16. On a scale of 1 to 5, how satisfied are you with online shopping?

1 (Not at all satisfied)
2 (Somewhat satisfied)
3 (Moderately satisfied)
4 (Almost satisfied)
5 (Fully satisfied)

3.3 Sampling and Data Collection:

To choose the respondents we have used one of the Probability Sampling Techniques, i.e. the Simple
Random Sampling. The chosen respondents belong to different states across India. It has been done
so as we require diverse opinions from people belonging to different geographical locations. For
sampling we identified respondents from different age groups (20-25, 26-30, 31-40 and >40) across all
gender. We made sure that the sample which we have selecting should be diverse in the aspect of buying
online. Data collection method which we’ve used is Web‐based questionnaires. It is a new and
inevitably growing methodology is the use of Internet based research. This would mean receiving an
e‐mail on which you would click on an address that would take you to a secure web‐site to fill in a
questionnaire. This type of research is often quicker and less detailed and very cost effective. Our main
focus was to get random data from Indian population, so we’ve received about 147 records from people
living in different parts of India. Further we have used SPSS for data analysis.

18
3.4 Data Analysis and Inferences:

Research Question 1:

Out of the 5 Independent Factors – Price, Quality, Customer support system, Variety and Convenience
– Which factor is the most important to influence customer’s online purchasing decision and what is
the least important?

Hypothesis (Ho): Customer’s online purchasing decision is not influenced by price, quality, customer
support system, variety and convenience.

Table of Analysis:

Table 1.1-Model Summary

Mod R R Adjusted R Std. Error Change Statistics
el Square Square of the R Square F df1 df2 Sig. F
Estimate Change Change Change
1 .531a .282 .256 .62131 .282 11.070 5 141 .000
a. Predictors: (Constant), AV_C, AV_CSS, AV_PF, AV_Q, AV_V

Table 1.2-ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 21.367 5 4.273 11.070 .000b
1 Residual 54.429 141 .386
Total 75.796 146
a. Dependent Variable: OPD
b. Predictors: (Constant), AV_C, AV_CSS, AV_PF, AV_Q, AV_V

Table 1.3-Coefficientsa
Model Unstandardized Standardized t Sig. 95.0% Confidence Interval
Coefficients Coefficients for B
B Std. Error Beta Lower Upper Bound
Bound
1 (Constant) 1.154 .520 2.218 .028 .126 2.183

19
 AV_PF .059 .073 .060 .800 .425 -.086 .203
AV_Q .396 .093 .336 4.246 .000 .211 .580
AV_CSS -.109 .100 -.084 -1.091 .277 -.307 .089
AV_V .264 .087 .244 3.049 .003 .093 .436
AV_C .126 .067 .145 1.883 .062 -.006 .258
a. Dependent Variable: OPD

Interpretation: From Table 1.3 i.e. Anova, the p value in the regression row is equal to 0.000 which is
less than 0.05 and this indicates that, overall, the regression model statistically significantly predicts the
outcome variable (i.e it is a good fit for the data).
From Table 1.4, we see that quality and variety have significance value (p value) of .000 and .003
respectively which are less than 0.05, so null hypothesis is rejected. Moreover, in case of convenience,
the confidence interval is 90%. We are comparing the coefficient values (magnitude) of quality, variety
and convenience which are .396, .264 and .126 respectively, therefore, quality is the factor that has
maximum influence and convenience is the factor which has least influence on the online purchasing
decision.
From Table 1.2, the R value is .531 which is greater than 0.5 and this indicates a high degree of
correlation. The R Square value is .282, which indicates that 28.2% of total variation in online
purchasing decision of consumers can be explained by quality, variety and convenience.

Research Question 2:

Are the factors different for consumers belonging to different age groups?

Hypothesis (Ho): Factors are not different for consumers belonging to different age groups.

Table of Analysis:

Table 2.1-Model Summary

Mod R R Adjusted R Std. Error Change Statistics
el age = 1.00 Square Square of the R Square F df1 df2 Sig. F
(Selected) Estimate Change Change Change
1 .545a .297 .244 .61871 .297 5.580 5 66 .000
a. Predictors: (Constant), AV_C, AV_Q, AV_CSS, AV_PF, AV_V

20
 Table 2.2-ANOVAa,b
Model Sum of Squares df Mean Square F Sig.
Regression 10.680 5 2.136 5.580 .000c
1 Residual 25.265 66 .383
Total 35.944 71
a. Dependent Variable: OPD
b. Selecting only cases for which age = 1.00
c. Predictors: (Constant), AV_C, AV_Q, AV_CSS, AV_PF, AV_V

Table 2.3-Coefficientsa,b
Model Unstandardized Standardized t Sig. 95.0% Confidence Interval
Coefficients Coefficients for B
B Std. Error Beta Lower Upper
Bound Bound
(Constant
1.105 .760 1.454 .151 -.413 2.623
)
AV_PF .079 .107 .080 .733 .466 -.136 .293
1 AV_Q .396 .126 .351 3.150 .002 .145 .648
AV_CSS -.104 .143 -.080 -.727 .470 -.391 .182
AV_V .250 .131 .213 1.911 .060 -.011 .511
AV_C .164 .085 .213 1.936 .057 -.005 .333
a. Dependent Variable: OPD
b. Selecting only cases for which age = 1.00

Table 2.4-Model Summary

Mod R R Adjusted R Std. Error Change Statistics
el age = 2.00 Square Square of the R Square F df1 df2 Sig. F
(Selected) Estimate Change Change Change
1 .534a .285 .209 .53469 .285 3.747 5 47 .006
a. Predictors: (Constant), AV_C, AV_CSS, AV_Q, AV_PF, AV_V

21
 Table 2.5-ANOVAa,b
Model Sum of Squares df Mean Square F Sig.
Regression 5.356 5 1.071 3.747 .006c
1 Residual 13.437 47 .286
Total 18.792 52
a. Dependent Variable: OPD
b. Selecting only cases for which age = 2.00
c. Predictors: (Constant), AV_C, AV_CSS, AV_Q, AV_PF, AV_V

Table 2.6-Coefficientsa,b
Model Unstandardized Standardized t Sig. 95.0% Confidence Interval
Coefficients Coefficients for B
B Std. Error Beta Lower Upper
Bound Bound
(Constant
1.519 .822 1.848 .071 -.135 3.173
)
AV_PF -.011 .113 -.012 -.095 .925 -.239 .217
1 AV_Q .357 .127 .380 2.812 .007 .102 .613
AV_CSS .039 .170 .032 .232 .818 -.302 .381
AV_V .207 .128 .247 1.617 .113 -.050 .464
AV_C .010 .117 .012 .083 .934 -.225 .244
a. Dependent Variable: OPD
b. Selecting only cases for which age = 2.00

Table 2.7-Model Summary

Mod R R Adjusted R Std. Error Change Statistics
el age = 3.00 Square Square of the R Square F df1 df2 Sig. F
(Selected) Estimate Change Change Change
1 .536a .287 .033 .79940 .287 1.128 5 14 .390
a. Predictors: (Constant), AV_C, AV_PF, AV_V, AV_CSS, AV_Q

22
 Table 2.8-ANOVAa,b
Model Sum of Squares df Mean Square F Sig.
Regression 3.603 5 .721 1.128 .390c
1 Residual 8.947 14 .639
Total 12.550 19
a. Dependent Variable: OPD
b. Selecting only cases for which age = 3.00
c. Predictors: (Constant), AV_C, AV_PF, AV_V, AV_CSS, AV_Q

Table 2.9-Coefficientsa,b
Model Unstandardized Standardized t Sig. 95.0% Confidence Interval
Coefficients Coefficients for B
B Std. Error Beta Lower Upper
Bound Bound
(Constant
.982 1.594 .616 .547 -2.436 4.400
)
AV_PF .085 .301 .094 .284 .781 -.560 .731
1 AV_Q .012 .869 .007 .014 .989 -1.852 1.876
AV_CSS -.144 .344 -.129 -.419 .682 -.882 .594
AV_V .440 .410 .368 1.074 .301 -.439 1.318
AV_C .351 .278 .332 1.263 .227 -.245 .947
a. Dependent Variable: OPD
b. Selecting only cases for which age = 3.00

Interpretation:
1. For the age group 20-25 from the Table 2.2 the p value in the regression row is 0.000 which is
less than 0.05 and this indicates that, overall, the regression model statistically significantly
predicts the outcome variable (i.e. it is the good fit for the data)
2. From Table 2.3, significance value of quality is 0.02 which is less than 0.05, so null hypothesis
is rejected. Also, the p value of variety and convenience fall in the 90% confidence interval.
Therefore, for consumers in the age group of 21-25, online purchasing decision is influenced
by quality, variety and convenience.

23
 3. From Table 2.1, the R value is 0.545 which is greater than 0.5 and this indicates a high degree
of correlation. The R Square value is 0.297, which indicates that 29.7% of total variation in
online purchasing decision of consumers van be explained by variety and convenience.
4. For the age group 26-30 from the Table 2.5 the p value in the regression row is 0.006 which is
less than 0.05 and this indicates that, overall, the regression model statistically significantly
predicts the outcome variable (i.e. it is the good fit for the data)
5. From Table 2.6, the p value of quality is 0.07 which lies in the 90% confidence interval.
Therefore, for consumers in the age group of 26-30, online purchasing decision is influenced
only by quality.
6. From Table 2.4, the R value is 0.534 which is greater than 0.5 and this indicates a high degree
of correlation. The R Square value is 0.285, which indicates that 28.5% of total variation in
online purchasing decision of consumers can be explained by quality.
7. For the age group 31-40 from the Table 2.8 the p value in the regression row is 0.390 which is
greater than 0.05 and this indicates that, overall, the regression model does not significantly
predict the outcome variable (i.e. it is not a good fit for the data). So, null hypothesis is
accepted.
8. So, comparing the outputs of the three age groups we infer that quality, variety and
convenience influence online purchasing decision for age group 20-25, quality influences
online purchasing decision for the age group 26-30 and no factor influences online purchasing
decision for the age group 31-40 and thus null hypothesis is rejected.

Research Question 3:

Are the factors different for consumers belonging to different genders?

Hypothesis (Ho): Factors are not different for consumers belonging to different genders.

Table of Analysis:

Table 3.1-Model Summary

Model R R Square Adjusted R Std. Error of
Gender = 1.00 Square the Estimate
(Selected)
1 .592a .350 .313 .57401
a. Predictors: (Constant), AV_C, AV_CSS, AV_PF, AV_Q, AV_V

24
 Table 3.2-ANOVAa,b
Model Sum of df Mean Square F Sig.
Squares
Regression 15.463 5 3.093 9.386 .000c
1 Residual 28.666 87 .329
Total 44.129 92
a. Dependent Variable: OPD
b. Selecting only cases for which Gender = 1.00
c. Predictors: (Constant), AV_C, AV_CSS, AV_PF, AV_Q, AV_V

Table 3.3-Coefficientsa,b
Model Unstandardized Standardized t Sig. 95.0% Confidence Interval
Coefficients Coefficients for B
B Std. Error Beta Lower Upper
Bound Bound
(Constant
.956 .574 1.666 .099 -.185 2.098
)
AV_PF .029 .095 .029 .307 .759 -.160 .219
1 AV_Q .481 .106 .449 4.545 .000 .271 .691
AV_CSS -.021 .119 -.017 -.172 .864 -.257 .216
AV_V .176 .097 .182 1.810 .074 -.017 .369
AV_C .098 .076 .121 1.292 .200 -.053 .249
a. Dependent Variable: OPD
b. Selecting only cases for which Gender = 1.00

Table 3.4-Model Summary

Model R R Square Adjusted R Std. Error of
Gender = 2.00 Square the Estimate
(Selected)
1 .477a .227 .147 .71204
a. Predictors: (Constant), AV_C, AV_CSS, AV_PF, AV_Q, AV_V

25
 Table 3.5-ANOVAa,b
Model Sum of df Mean Square F Sig.
Squares
Regression 7.164 5 1.433 2.826 .026c
1 Residual 24.336 48 .507
Total 31.500 53
a. Dependent Variable: OPD
b. Selecting only cases for which Gender = 2.00
c. Predictors: (Constant), AV_C, AV_CSS, AV_PF, AV_Q, AV_V

Table 3.6-Coefficientsa,b
Model Unstandardized Standardized t Sig. 95.0% Confidence Interval
Coefficients Coefficients for B
B Std. Error Beta Lower Upper
Bound Bound
(Constant
1.447 1.165 1.243 .220 -.894 3.789
)
AV_PF .096 .121 .105 .797 .429 -.147 .340
1 AV_Q .257 .188 .182 1.362 .180 -.122 .635
AV_CSS -.209 .189 -.145 -1.108 .273 -.589 .171
AV_V .391 .192 .287 2.042 .047 .006 .776
AV_C .159 .137 .163 1.156 .253 -.117 .435
a. Dependent Variable: OPD
b. Selecting only cases for which Gender = 2.00

Interpretation:
1. For the male population from the Table 3.2 the p value in the regression row is 0.000 which is
less than 0.05 and this indicates that, overall, the regression model statistically significantly
predicts the outcome variable (i.e. it is the good fit for the data).
2. From Table 3.3, which depicts data about male population, p value of quality is 0.000 which is
less than 0.05. So, null hypothesis is rejected. P value of variety is 0.074 which lies in the 90%
confidence interval. The coefficient value of quality is 0.481 and that of variety is 0.176.

26
 3. From Table 3.1, the R value is 0.592 which is greater than 0.5 and this indicates a high degree
of correlation. The R Square value is 0.350, which indicates that 35.0% of total variation in
online purchasing decision of consumers can be explained by quality and variety.
4. For the female population from the Table 3.5 the p value in the regression row is 0.026 which
is less than 0.05 and this indicates that, overall, the regression model statistically significantly
predicts the outcome variable (i.e. it is the good fit for the data).
5. From Table 3.6, which depicts data about female population, p value of variety is 0.047 which
is less than 0.05. So, null hypothesis is rejected. P value of variety is 0.391.
6. From Table 3.4, the R value is 0.477 which is less than 0.5 and this indicates a low degree of
correlation. The R Square value is 0.227, which indicates that 22.7% of total variation in online
purchasing decision of consumers can be explained by variety.
7. Therefore, from the coefficient tables of the two genders we can say that variety factor is more
important for females and that is the only comparable factor.

Research Question 4:

Do consumers in the age group of 20 to 25 give more importance to consumer support system than
those in the age group 31 to 40 before purchasing a product online?

Hypothesis (Ho): Consumer support system is equally important for customers lying in the age group
of 20-25 and 31-40?

Table of Analysis:

Table 4.1-Group Statistics

age N Mean Std. Deviation Std. Error Mean
1.00 72 4.1294 .54750 .06452
AV_CSS
3.00 20 4.2840 .72814 .16282

27
 Table 4.2-Independent Samples Test
Levene's Test for t-test for Equality of Means
Equality of
Variances
F Sig. t df Sig. (2- Mean Std. Error 95% Confidence
tailed) Differenc Differenc Interval of the
e e Difference
Lower Upper
Equal variances -
3.325 .072 90 .303 -.15456 .14920 -.45096 .14185
AV_ assumed 1.036
CSS Equal variances 25.27
-.882 .386 -.15456 .17514 -.51506 .20595
not assumed 0
Interpretation: Looking at the Levene’s Test for Equality of Variances from Table 4.2, the p value of
customer support system is 0.072 (when equal variances are assumed) which is greater than 0.05. So,
we will consider the p value when equal variances are not assumed from the t-test for equality of means
which is 0.386 and this is greater than 0.05. Thus, null hypothesis is accepted. Further, from Table 4.1,
comparing the means of age groups 20-25 and age groups 31-40, gives an almost equal value (4.1294
and 4.2840). Hence, customer support system is equally important for both age groups.

Research Question 5:

Do women online buyers give more importance to variety than men?

Hypothesis (Ho): Variety is equally important for both men and women buyers.

Table of Analysis:

Table 5.1-Group Statistics

Gender N Mean Std. Deviation Std. Error Mean
1.00 93 3.6505 .71773 .07443
AV_V
2.00 54 3.5370 .56512 .07690

28
 Table 5.2-Independent Samples Test
Levene's Test for t-test for Equality of Means
Equality of Variances
F Sig. t df Sig. (2- Mean Std. Error 95% Confidence
tailed) Differenc Differenc Interval of the
e e Difference
Lower Upper
Equal variances
3.656 .058 .996 145 .321 .11350 .11395 -.11171 .33871
AV assumed
_V Equal variances 132.0
1.061 .291 .11350 .10702 -.09819 .32519
not assumed 44

Interpretation: Looking at the Levene’s Test for Equality of Variances from Table 5.2, the p value of
variety is 0.058 (when equal variances are assumed) which is greater than 0.05. So, we will consider
the p value when equal variances are not assumed from the t-test for equality of means which is 0.291
and this is greater than 0.05. Thus, null hypothesis is accepted. Further, from Table 5.1, comparing the
male and female population gives an almost equal value (3.6505 and 3.5370). Hence, variety is equally
important for both men and women buyers.

Research Question 6:

Are less frequent online buyers more concerned about economic benefits as compared to frequent online
buyers?

Hypothesis (Ho): Less frequent online buyers are equally concerned about economic benefits as
frequent online buyers.

Table of Analysis:

Table 6.1-Group Statistics

Buy_fr N Mean Std. Deviation Std. Error Mean
1.00 26 3.9808 .74136 .14539
AV_PF
3.00 22 3.6818 .82441 .17577

29
 Table 6.2-Independent Samples Test
Levene's Test for t-test for Equality of Means
Equality of
Variances
F Sig. t df Sig. (2- Mean Std. 95% Confidence
tailed) Differenc Error Interval of the
e Differenc Difference
e Lower Upper
Equal variances
1.004 .322 1.322 46 .193 .29895 .22606 -.15608 .75399
AV assumed
_PF Equal variances 42.75
1.311 .197 .29895 .22811 -.16114 .75905
not assumed 6

Interpretation: Looking at the Levene’s Test for Equality of Variances from Table 6.2, the p value of
price factor is 0.322 (when equal variances are assumed) which is greater than 0.05. So, we will consider
the p value when equal variances are not assumed from the t-test for equality of means which is 0.197
and this is greater than 0.05. Thus, null hypothesis is accepted. Further, from Table 6.1, comparing the
less frequent (once in 6 months) and more frequent (once in a week) buyers gives an approximately
comparable value (3.6818 and 3.9808). Hence, economic benefit is equally important for both more and
less frequent buyers.

Research Question 7:

Is product quality more important than customer support system for female buyers?

Hypothesis (Ho): Product quality and customer support system are equally important for female buyers.

Table of Analysis:

Table 7.1-Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean
Fem_AV_Q 3.9630 54 .54817 .07460
Pair 1
FEM_av_CSS 4.1667 54 .74606 .10153

Table 7.2-Paired Samples Correlations

30
 N Correlation Sig.
Fem_AV_Q &
Pair 1 54 -.077 .581
FEM_av_CSS

Table 7.3-Paired Samples Test

Paired Differences t df Sig. (2-
Mean Std. Std. Error 95% Confidence Interval tailed)
Deviation Mean of the Difference
Lower Upper
Pair Fem_AV_Q - -
.95916 .13053 -.46550 .05810 -1.561 53 .125
1 FEM_av_CSS .20370

Interpretation: From Table 7.3, p value of quality and customer support system is 0.125 which is
greater than 0.05. So, null hypothesis is accepted. Further, comparing the mean values of quality and
customer support system for female buyers gives almost equal result (3.9630 and 4.1667 respectively)
i.e. both are equally important.

Research Question 8:

Which is the most important and least important factor for the consumers?

Hypothesis: Evaluating the most important and least important factor for consumers.

Table of Analysis:

Table 8.1-Averages of Ranks

Rank 1 Rank 2 Rank 5 Rank 4 Rank 3

Customer Support
Price Factor Quality Variety Convenience
System
2.5 2.7 3.5 3.2 3.1

Interpretation: Taking average of the ranks given by the consumers to all the independent variables,
namely, price factor, quality, customer support system, variety and convenience – we infer that the
lowest average is for price factor (2.46) and the highest average is for customer support system (3.48).

31
Therefore, price is most important factor and customer support system is the least important factor for
consumers.

4. CONCLUSION

As per our management decision problem, the management wants to increase the profitability without
compromising on the quality of products sold online. Moreover, as per our survey quality is the most
important factor that influences the customer’s online purchase decision. We also noted that price does
not affect consumer’s purchase decision. Thus, management can increase its profitability by charging a
reasonably higher price for its products.

On exploring the other factors that influence the customer’s purchase decision, we narrowed it down to
three factors namely, quality, variety and convenience. E-commerce companies should therefore focus
on optimizing variety of products and providing more convenience and autonomy to consumers. For
this, the following recommendations can be given.

1. Frequent quality checks of products by certified quality assurance testers. This increases the
confidence of the customers in the product of the company and leads to increased sales.

2. Introduction of new lines of products on a regular basis to ensure better variety to customers. The e-
commerce companies can add new variants to their existing products line.

3. Ensuring faster on time delivery, ubiquity and wide accessibility of their services.

Summarizing, we can say that E-Commerce companies should give quality the maximum priority along
with providing a wide range of products even if it means compromising on the price factor a little bit
along with maintaining their ease of accessibility and convenience benefits.

32