RM Stats PDF

CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research & Research Methodology
The word research when used gives an indication about a new search. It is
basically composed of two syllables, a prefix ‘re’ and a verb ‘search’. Re means
again, a new, over again. Search means to examine closely and carefully, to test
and try, to probe. Various authors have given different definitions of research from
time to time. C.C. Crawford (2011) defines research as a systematic and refined
technique of thinking, employing specialized tools instrument and procedures to
obtain a more adequate solution to a problem. According to Clifford Woody
research comprises problems definition and redefinition, hypothesis formulating or
coating solutions; data collection, organizing and evaluation of data; making
deductions and reaching conclusions; and the final stage is to perform testing of
conclusions derived so as to know whether they fit the hypothesis formulated.
Thus the terminology “research” relates to the ordered sequence consisting of
invocating the problem, devising the hypotheses, assembling the data, analysing
the data so as to reach to certain conclusions either in the form of solutions(s)
towards the concerned problem or in certain generation for some theoretical
formulation. The present chapter is aimed at explaining the research Methodology
adopted for carrying out the research work on the topic of online buying
behaviour.
Research Methodology
Research Methodology is a way to find out the result of a given problem on a
specific matter or problem that is also referred as research problem. In
Methodology, researcher uses different criteria for solving/searching answer to the
given research problem. Research methodology is needed because it facilitates
smooth running of various operations, there by making research as efficient as
possible, yielding maximum information with minimum expenditure of efforts,
time and money. Generally adopted research methodology or research process by
researchers is shown below in figure.
Figure 3.1 Research Process
Source: C. M. Chaudhary (2009). Research Methodology, p 15, RBSA Publisher, Jaipur.
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Figure 3.2: Research Methodology adopted for Conducting this research

work
3.2 Research Problem and Research Questions
Many researchers have worked on identifying the factors influencing the buying
behaviour of customers, buying process, impact of attitude on buying behaviour,
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etc with reference to shopping made from brick and mortar retail stores. But now
the medium of shopping has changed from offline to online. There also exist many
differences between two modes of shopping. Due to this fact, many questions arise
relating to online retailing and buying behaviour of online customers, which needs
to be answered. Some of them which resulted in this study are as follows -
1) What are the reasons for growth of online retailing?
2) Who are online shoppers in terms of demography?
3) What factors influence customer’s attitude to shop online?
4) Is there any relation between attitude and buying behaviour of online
shoppers?
5) What are the hurdles in the way of online shopping?
This research work attempts to provide answer to these questions by taking online
shoppers of Rajasthan as sampling unit for the study.
3.3 Literature Review
A Literature Review is a systematic, explicit, and reproducible method for
identifying, evaluating, and synthesizing the existing body of completed and
recorded work produced by researchers, scholars, and practitioners. (Arlene Fink,
2005.) The aim of a literature review is to show that reader have read, and have a
good grasp of, the main published work concerning a particular topic or question
in your field. For the purpose of this study also extensive literature review has
been made related to different areas of this study. For understanding and
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convenience purpose review is done by classifying it into different categories
relating to various field of the present work.
Table 3.1: Topic-wise Classification of Papers Reviewed

S. No. Basis of Classification No. of Papers reviewed
1. Growth of E-Commerce and E-Tailing in 05
India
2. Demographic variable and online buying 08
behaviour
3. Factors Affecting online buying behaviour 10
4. Website design and online buying behaviour 06
5. Perceived risk and online buying behaviour 08
6. Shopping Motivation and online buying 05
behaviour
Total 42
Topic-wise Classification
of Papers Reviewed
Shopping
Motivation and 5
online buying…
Perceived risk
and online 8
buying…
Website design
and online 6
buying…
No. of Papers
Factors reviewed
Affecting 10
online buying…
Demographic
variable and 8
online buying…
Growth of E
Commerce and 5
E Tailing in…
0 5 10
Chart 3.3 Topic-wise Classification of Papers Reviewed
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Table 3.2: Year-wise Classification of Papers Reviewed
S. No. Year No. of Papers Reviewed

1 Year 2016 03
2 Year 2015 08
3 Year 2014 07
4 Year 2013 05
5 Year 2012 07
6 Year 2011 03
7 Year 2010 03
8 Year 2009 02
9 Year 2008 02
10 Year 2005 02
Total 42
Year-wise Classification of Papers

Reviewed
2 3 Year 2016
2
Year 2015
2
8 Year 2014
3
Year 2013
Year 2012
3
Year 2011
Year 2010
7
Year 2009
7 Year 2008
5 Year 2005
Chart 3.4 Year-wise Classification of Papers Reviewed
3.3.1 Snap Shot of Literature Review
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63
64
65
66
67
68
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3.3.2 Detailed literature Review
3.3.2.1 Review Related to Growth of E-Commerce and E-Tailing in India
Ruby (2016) made an attempt to evaluate and highlight the potential E-Retailing
holds and the role it can play in context of Indian consumers and economy. She
reported among the major factors behind the growth of E-tailing in India are no
rent or land costs:, enhanced communication with the client, global reach,
effortless and joyful shopping experience, no time limitation, ease of price
comparison, Internet Boom, rising living standard , Availability of wider range of
products and discount offers. Along with this she has also explained major
challenges which are acting as hurdle for growth arecontrolling customer data,
problems with the payment system, lack of full cost disclosure, handling returns,
delivering the goods cost-effectively, problems with shipping, language problem.
She concluded with a remark that for future growth of E-Tailingin India it is
necessary to develop a sustainable environment.
Sharma V. & Kumari S. (2014) explained some facts associated with online
retailing in India in this study. They explained that the Indian online retail is a rich
segment waiting to be exploited. The online retail medium holds many virtues
favorable for the retail industry including a higher customer penetration, increased
visibility, and convenient operations. They have highlighted that E-Commerce is
now accepted by online shoppers as a safe shopping medium. They have also
explained some specific features of Indian online shoppers like Cash on Delivery
as a preferred payment method. Increasing demand for international consumer
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products (including online purchases from international retailers). Reasons coated
by them for acceptance so online shopping by Indian buyers are rising incomes, a
greater variety of goods and services offered through internet and simplicity of the
transaction processes They suggested that next stage of this journey is Mobile E-
Commerce for Indian merchants.
Upasna R. & Rebello S. (2014) suggested that India is at the peak of a digital
revolution. Reduction in subscription rates of broadband connection along with
introduction of 3G / 4G services, have been driving this trend. The ultimate impact
of this is day by day increasing population of “netizens. The changes in lifestyle of
people residing in urban India have also led many people to satisfy their purchase
related needs through the internet. As an implication E-Commerce players are
planning to make money from the Indian buyer but they can capture these netizens
as shoppers only when they apply innovative marketing strategies.
Chanana N. & Goele S. (2012) highlighted that the overall E-Commerce will
increase exponentially in coming years in India’s emerging market . The journey
of spending money for purchase through online mode initiated with purchase of
travel tickets and holiday plans online in the last decade has now extended to an
increase in spends on household appliances and luxury products. While segments
like apparel and luxury products have registered miraculous growth rate in 2011,
jewelry, electronic appliances and hardware products have shown increment in
their growth trends as well. Online shopping in India has touched a growth rate of
18 per cent and is only likely to grow further.
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Ray S. (2011) concluded in the paper that e-commerce in India is in burgeoning
stage but e-commerce players consider Indian market as a dream destination for
because of reasons like high level of literacy urban areas, rapidly increasing rate of
literacy in densely populated rural India, a rapidly spreading base of internet users,
advancement and adoption of technology. According to author major portion of
Indian E-Commerce market is captured by the online travel industry with 80%
market share while the second position is occupied by electronic retail (E-Tailing)
with 6.48% market share.
3.3.2.2 Reviews Related to Demographic Variable and Online Buying

Behaviour
Kala S. & Sharma R.K. (2015) investigated the perception of customer towards
online shopping among male and female management students of Jaipur
Rajasthan. For the purpose of this study a sample of 50 males and 50 females
haven taken and independent sample test is applied to draw the result. Findings of
the study indicated that there is no significant difference in customer perception
towards online shopping among male and female students pursuing graduation.
Rajayogan K. &Muthumani S. (2015) worked on factors behind intention of
buyers to purchase online. Specifically the independent factor of the study are
different demographic variables like gender, age, monthly income, occupation.
Author have focused on finding relationship between above mentioned
demographic variables and intention to buy products online. Major findings of the
work suggested that out of all these variables except gender all the variables
influence online buying intention of buyers. Besides this by mean of chi square
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association between age and individual privacy details shared on website is tested
along with association between income and monthly payment.Findings suggests
that there exists no association between age and information shared on website. In
another case it was found that there is a significant association between income
and the payment method. Since the high income people are more risk takers than
low income group.
Venkateswaran T.S. & Sudhahar J.C. (2015) like other authors studied the
impact of demographic factors like gender, age, education and occupation on
attitude towards online buying behaviour of customers. Along with this researchers
have also analyzed the impact of Internet surfing, watching online advertisements
on attitude towards online buying behaviour. The unique feature of this paper is a
new independent variable i.e. impact of watching online advertisements on online
buying behaviour .Anova analysis is used for conduction of above mention
analysis.Friedman’s Test is also used in this paper on various type of problems
associated with online advertisements. The test results showed that meaningless
online advertisement sometimes creates problematic situation in front of customers
while making purchase from internet. Age, gender and education are found to
influence attitude of customers towards online buying.
Hardia A. & Sharma K. (2013) have made an attempt to study the impact of
demographic factors of online buying behaviour of youths. The study was
conducted amongst youths up to the age of 26 years of Indore and nearby city.
Four demographic factors have been taken i.e. age, gender, educational
background and pocket money of respondents. Along with this some factors
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associated with online shopping like Internet Facility, Ease of Process, Security of
Website, Timely Delivery are taken for the study. The findings of study suggests
that female shop more from online method. Out of all factors associated with
online shopping taken in this study timely delivery of products is found to be
factor affecting the online buying behaviour of buyers irrespective of age , gender,
educational background and pocket money.
Nagra G. & Gopal R. (2013) in this paper author have studied the impact of
demographic factor specifically age, gender, income and occupation on online
shopping parameters of consumers. Shopping parameters which author have
considered are possession of internet, frequency of online purchase, motivation
drives for online purchase. The result of this study was age ,gender, income do
found to have impact on online shopping parameters of consumers specifically
possession of internet, frequency of online purchase and income is the only
demographic factor which affects motivation drive for online shopping along with
possession of internet, frequency of online purchase. This study was conducted in
India.
Jusoh Z. M. &Ling G.H. (2012) conducted on online buyers of Ipoh, Malaysia to
find out factors affecting buyer’s attitude towards E-Commerce purchase. In this
study they investigated how socio-demographic (age, income and occupation),
pattern of online buying (types of goods, e-commerce experience and hours use on
internet) and purchase perception (product perception, customers’ service and
consumers’ risk) affect consumers’ attitude towards online shopping. For
analyzing the said relationship. By means of one-way ANOVA it has been
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highlighted that there is no significant difference in attitude towards online
shopping among age groups and occupation groups but there is a significant
difference in attitude towards online shopping among income groups and types of
goods group. The independent variable of the study were age, income, occupation
and pattern of online buying (type of goods) and dependant variable was attitude
towards online shopping. Furthermore by using Pearson’s correlation the study
have proved that there is a significant relationship between e-commerce
experience, product perception and customers’ service and attitude towards online
shopping.
Haq Z.U. (2008) in this paper worked on two focus areas .Firstly author has tried
to trace out the demographic profile of the customers and its impact if any on the
online buying. Secondly authors have tried to find the factors affecting the
perception of Indian online buyers. The data for the study was gathered through a
structured questionnaire from respondents from two cities of Hyderabad and
Secunderabad in India. The result of study showed that the perception of online
shoppers is independent of their age and gender but not independent of their
qualification & gender and income & gender. The analytical result of the study
exhibit significant relationships between consumers’ perceptions of the customer
service, commitment and web security of online purchasing with their online
buying intention.
Sorce P., Perotti V. & Widrick S. (2005) in there paper have studied the impact
of attitude and age of online shoppers on their online shopping behavior. Under
online shopping behavior author have included both behavior to search as well as
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behavior to purchase product online. The result of the study have indicated that
younger customers search more for the product online than the older ones but they
did not buy more online. It has also been found that younger customers are making
purchase of products like music whereas older ones are buying products like
garden tools etc. Also younger customers found online shopping convenient than
the older ones. .Attitudinal factors showed more variance in predicting online
searching and buying behavior than age factor.
3.3.2.3 Reviews Related to Factors Affecting Online Buying Behaviour
Bauboniene Z. &Guleviciute G. (2015) conducted a study on online buyers of
Lithuania with a purpose of gaining insight into the factors influencing the online
buyer for shopping through online channels. The empirical findings of this study
indicated that the encouraging factors for online shopping are convenience,
simplicity and better price associated with virtual shopping system.Among the
benefits of system the most beneficial factor was identified as a possibility to
compareprices and buy at a lower price. Socio demographically it was found that
reasons behind Women going for online shopping ispurchase at lower price while
men are influencedby faster and more convenient shopping. Although statistically
when Pearson Chi-Square Test was applied it was not proved so.
Ganapathi R. (2015) surveyed 300 customers of Chennai to find out the factors
affecting online shopping behaviour of consumers. In order to reach to findings the
researcher have applied factor analysis which extracted four factors responsible for
buying behaviour of online shoppers.. These Factors are convenience, website
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features, security and time saving. Later on researcher have applied multiple linear
regressions to examine the influence of factors affecting online shopping
behaviour on purchasing decision of consumers. The factors affecting online
shopping behaviour are considered as independent variables and the purchasing
decision is considered as dependent variable. The results indicate that convenience,
security, website features and time saving are positively and significantly
influencing the purchasing decision of consumers of Chennai.
Adnan H. (2014) conducted the research to search out the determinants impacting
the purchasing patterns of consumers through online mode in the Pakistan. The
independent variables included in the study were perceived advantages, perceived
risks, hedonic motivations, website design and lastly, psychological factors
denoted by trust and security factors. The study concluded that perceived risks,
perceived advantages and psychological factors were found significant in
impacting the buying behaviour while making purchase through online mode. In
addition to this it was proved in study that perceived risks influences consumer
buying behavior in an inverse manner. Psychological factors were found to have
the highest correlation with online shopping behavior, hence it was concluded that
trust towards online vendors and security issues are the most important in
determining online purchasing patterns of Pakistani consumers. The two
insignificant variables found in the study were website design and hedonic
motivation. This study was conducted with 100 respondents from Lahore,
Pakistan.
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Khanh N.T.V. & Gim G.(2014) by means of factor analysis and regression
analysis conducted an empirical research among respondents of Vietnam. Their
objective was to find out the factors which affect the online buying behaviour of
Vietnam shoppers. For this study authors have set six hypotheses to trace
relationship between independent variables and online buying behaviour. After
application of statistical tool it was observed Perceived of economic benefits
(PEB), Perceived of merchandise (PM), and Perceived payment benefits (PPB)
significantly affects consumers behavior of adoption of online shopping. Percieved
ease of use, perceived risk in context of online transaction and perceived risk with
product / service transaction were not found to be significant in affecting online
buying behaviour of Vietnam buyers.
Rahaman M. M. (2014) conducted a study with respondents from Bangladesh
toexplore thee-commerce trends among them. The sample for study was
represented by university undergraduate students in Sylhet region. The major
finding of the paper revolves around general perceptions and preferences of the
online shopping including products and website selection. Findings derived on the
basis of descriptive statistics indicated that large numbers of the undergraduate
students with majority of male students were doing their purchasing through
internet. Male respondents of the study were found in leading position than that of
the female respondents in terms of online purchase frequency, number of
purchases made and comfort perception in online shopping. In the study some of
the reasons were also highlighted which were found to attract respondents towards
it. They were time saving, security, convenient and easiness of the system. The
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findings showed that most purchased categories include software & books, sports
items, music, gifts & toys .With reference to security, respondents reported that
they feel secure while purchasing through online mode. Many of the respondents
reported that online shopping from well-known e-tailers like Cell bazaar results in
high level comfort and satisfaction.
Sen R. A. (2014) conducted this work with intent to show the factors which
influence the purchase of products through virtual medium in Kolkata. Findings of
the study have highlighted cost as most significant determinant influencing the
online purchase of products in Kolkata city of India. After the cost, it is
convenience which influences the online purchase of products of respondents from
Kolkata. Respondents reported that shopping through virtual shops is much more
convenient for them as they in this case they don’t have to go out of their house for
shopping and also subsequently their time is also saved. The third factor was
product factor. The varieties of products and brands offered through e shops was
found pulling respondents towards online shopping. The proper promotion of the
seller and products and brands offered by it, ell in time after sale service and
sellers feedback was also one of the focus area found influencing buying behaviour
of buyers through virtual storefront.
Nazir S. & et. al. (2012) in this paper has tried to find out various factors which
attract students and general public of Pakistan towards making their purchase from
online shopping system. Along with this author have tried to focus on reasons
because of which people hesitate to go for online shopping. Among the factors
which were found associated with virtual shopping were social factors emotional
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factors, psychological factors, and the privacy factors. The factors which were
found to attract consumers included price, security, convenience, confidence,
time, after sale service and discounted offers. Out of this entire price was
considered to be the most powerful factor influencing behaviour. Insecurity with
reference to electronic payment and transactions were found as two reasons
because of which consumers hesitate to shop online.
Sinha J. & Kim J. (2012) worked to find out factors that stimulate Indian
consumers to shop online. The researchers in this work have focused on
underlying factors with reference to risk perception of online consumers. Along
with factors prescribed from earlier study authors have taken some India specific
factors like concerns associated with delivery of an ordered product and cyber
laws, shipping fees, and after service for investigation in this study. Overall result
of the study have revealed that significant factors affecting attitude include issues
relating to delivery of product, social and perceived behavioral control. Regression
analysis was also applied to know preference of risk gender wise. Findings of
regression analysis highlighted that in case of males factors affecting perceived
risks include product, convenience, financial, and non-delivery and technology
specific innovativeness whereas in case of females, convenience risk and attitude
towards online shopping were found to be significant factors. This study was
conducted in Delhi region of India.
Wang, C. C., Chen, C. A., Jiang, J. C., (2009) in order to investigated the
relationship among the intention to go shopping online, trust in online shopping,
and knowledge conducted this research work. The results revealed that their exist a
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linear relation between knowledge trust and online shopping activities. It can be
explained as people who have high level of knowledge about virtual shopping will
have high level of trust in it and thereby will shop more through virtual mode.
Perceived integrity and trust propensity are another independent variable which
were tested for their influence on trust towards online shopping system. Perceived
integrity refers to the buyers confidence in an online shopping website. The more
the level of confidence the less the perception of risk. Trust propensity refers to
trust developed on the basis of initial experience of online shopping. Among these
two variables perceived integrity was found to be significant in affecting the
intention to go shopping online.
Alam S. S. & et. al. (2008) conducted an empirical study to find out the
relationship between four independent variables website design, reliability with
reference to delivery of product, customer services and trust and dependent
variable online shopping intention. Besides that this study also examined whether
there are any differences in online shopping by different races in Malaysia.
Findings of study indicated that Malaysian young consumers who were browsing
Internet perceived reliability of a website, services provided by an e tailer and trust
are the factor which significantly affects the web online buying behaviour. The
only factor which is less likely to influence the online buying behaviour is website
design. With reference to next working area of paper it was observed statistically
that there was no significant difference in online shopping among different races in
Malaysia. Multiple Regression and ANOVA are the statistical tools used to test
hypotheses of the study.
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3.3.2.4 Reviews Related to Website Design and Online Buying Behaviour
Turkyilmaza C. A. & et. al. (2015) conducted this study with two focus areas .In
one portion authors’ have examines the effects of web site quality (external factor)
on online impulse buying. The result showed that three features of website i. e.
ease of use , usefulness, entertainment in the same order were found to be most
influential in affecting online impulse buying behaviour. The dimension ease of
use included ease of understanding, intuitive operations relating to website. The
usefulness dimension was explained by response time, informational fit to task,
tailored communications of the website along with trust of the consumers to the
website. The third feature of website i.e. entertainment of the website was
described by the visual and emotional appeal of the website.
In next focus area of paper authors have studied the how personality trait(internal
factor) influences the online impulse buying. According to the results extraversion,
openness to change and agreeableness have positive effects; conscientiousness and
neuroticism have negative effects on online impulse buying.
this study The next important result of the study is related with the personality
traits of the consumers who shop online. To conclude with, authors have suggested
that to increase online impulse buying both website quality dimensions and
personality traits should be taken into consideration by online retailers.
Ariff M. S. M. & et. al. (2013) conducted this study to know the role of web
based factor towards the online buying behaviour of undergraduate students of
Malaysia. An online shopping website is an important element in entire process of
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E-Commerce purchase. Design of a website is taken as strong predictive of
customer judgments of quality of and attitudes toward the website. Statistically
Exploratory factor analysis and multiple regressions are applied to derive result of
this work. The Exploratory factor analysis showed that five factors affecting online
purchase behavior are Information Quality, Fulfilment/Reliability/Customer
Service, Website Design, Quick and Details, and Privacy/Security. The result of
Multiple Regression Analysis indicated that Information Quality, Quick and
Details, and Privacy/Security affect positively online purchase behaviour. This
study took place on 310 undergraduate students from Malaysia.
Kim C. & et. al. (2012) in this paper have tried to find out the factors which
influence the internet shopping value and repurchase intension of online shoppers
.IN this paper three independent variables were taken – system quality, service
quality and information quality. System quality includes security and accessibility
of the system. Service quality includes ease in placement of order and waiting
time for receipt of response to consumer complaints. Information quality refers to
ability of a website to provide the updated and correct information which is of
material use. Two types of internet shopping values have been mentioned in this
paper utilitarian shopping vale and hedonic shopping value. This study was
conducted with respondents of two types only i.e. service class people and
students. Results showed that utilitarian shopping value was influenced more by
system and service qualities whereas hedonic shopping value was found to be
linked with information and service qualities. Findings also suggested that service
quality is a factor which affects both utilitarian and hedonic shopping values. One
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of the results of study was that the association between quality factors and Internet
shopping values and subsequent repurchase intention varies with variation in
income of groups.
Ganguly B. & et. al. (2010) studied the mediating role of trust and moderating
role of culture on online buying intention of respondents from Indian, Canadian
and American culture. The first set of hypothesis proposed in the study is related to
positive relationship between trust and purchase intention, negative relation
between trust and risk perception and negative relation between risk perception
and purchase intention. For relation between trust and purchase intention,
collectivism was taken as moderating variable whereas in case of trust and risk
perception, uncertainty avoidance nature of customers was taken as moderating
variable. The next set of hypothesis was for relation between trust and website
design factor with masculinity, uncertainty avoidance nature of customers,
collectivism taken as moderating variable. Website design includes information
design, information design and visual design. Furthermore study of positive
relation between website design and purchase intention with trust as mediating
factor is also included in purview of this study. Trust is also tested for its
mediating effect on negative relation between website design and perceived risk.
The result of the study was derived using confirmatory analysis. The results
showed that information design, visual design and navigation design are
significant predictors of trust in online stores. Information design of the website
was considered to the most important factor for generating trust, followed by
visual design and navigation design. Trust was also found to be a significant
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predictor of purchase intention and perceived risk. The proposed moderators
masculinity, collectivism and uncertainty avoidance were found to be significant
predictors of trust.
Blanca H. & et. al. (2009) explained the main factors that must be taken into
account when designing a commercial website. The result focused on some of the
facts. Firstly, it should be kept in mind that entry to practically inaccessible
markets is smoothened by internet popularity and search engine positioning.
Secondly, the navigational properties of website brings a browser in comfortable
and secure position which motivate a browser to complete its transaction till end.
Lastly, utmost care should be given to the fact that accurate and up-to-date
information should be provided on the website matching to customers'
requirements.
Gurvinder S. S. & Chen Z. (2005) in this paper have tried to find out the impact
of various website related factors in moudling the buying behavior of buyers
towards online shopping. Authors have taken four website related factors –website
design factor, website reliability/fulfillment factor, website customer service factor
and website privacy /security factor. Authors have also taken four different type of
online shoppers for conducting this study. The four types of online New Zealand
buyers are trial, occasional, frequent and regular online buyers. These buyers have
different evaluations of website design and website reliability/fulfilment but
similar evaluations of website security/privacy issues, which implies that
security/privacy issues are important to most online buyers.
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3.3.2.5 Reviews Related to Perceived Risk and Online Buying Behaviour
Sreya R. & Raveendran P. T. (2016) conducted this study with an objective to
explore the dimensions of risk perceived by consumers while purchasing anything
online. The result of factor analysis have revealed that there are five type of risk
perceived by consumers namely ‘Payment and Transaction Risk’, ‘Risk of hidden
charges’, ‘Product Risk’, ‘Privacy Risk’ and ‘Time risk’. The paper also provides
some of strategies for online retailers to reduce the perceived risk associated with
their business. A few of them are retailers can go in for innovative methods such as
mobile payments etc. Retailers need to be specific regarding their guarantee and
warranty policies. product descriptions must be clear.
Urvashi (2016) in this paper worked on dimensions affecting consumer’s decision
making process. There are many dimensions affecting the process but the focus
area of this paper is consumer’s perceived risk in the process of making online
purchase decision. Author has conducted this study in Haryana state of India.
Author has taken five dimensions of perceived risk for study. They are financial
risk, time risk, source risk, psychological risk, and performance risk. Unlike the
other studies perceived performance risk is found to be most significant dimension
of risk affecting online purchase decision of online shoppers. Author have also
suggested that e-marketers can make online shopping experience of e shopper less
risky by having knowledge of consumers previous e shopping experience and
types of risk perceptions they have.
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Arshad A. & et. al. (2015) studied how online behavior of a consumer is
influenced by two major type of perceived risks i.e. environmental and behavioral
risk . Behavioral risk includes product risks which can be explained as time issues
related to delivery of product, and convenience risk and psychological risks . In
this study author under the environmental risk has included financial risk and
security risk. For the purpose of this study a sample of 100 respondents were taken
of teenage to adult from Karachi, Pakistan. By means of one way ANOVA,
regression and correlation method result of study have been derived statistically
.Result have showed that perceived risk and online buying behaviour were
positively related. Lower perceived risk gives an indication of positive online
buying behaviour. Out of all the risk mentioned in this study, time and
convenience risk is found to effect online buying behaviour most prominently.
Sharma S. & Sitlani M. (2015) with an objective to provide some strategies to
reduce the risk associated with virtual shopping conducted this work. Researchers
in study by means of factor analysis have identified five risk related factors – risk
relating to product, monetary risk, risk relating to return policy, social risk and
information risk associated with online buying. This study was conducted in
Indore city of India. Researchers have suggested some of the strategies to
overcome risk perception of consumer for marketers in the paper also. A few of
them are E-tailers should assure delivery of ensured goods and services, make
available an easy goods return process, try to minimize monetary threats and
develop a well secured framework of e-commerce technology for reducing risk
associated with online buying.
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Dai B. & et. al. (2014) by means of a proposed model examined the relationships
between online shopping experience and perceptions of product, financial, and
privacy risks associated with online shopping, and how both experience and risk
perceptions impact online purchase intentions. For this study a sample of 336
students drawn through convenience sampling method from South eastern
university, USA was taken and SEM was applied to derive the results. The
relationship was tested for two different product categories – digital and non
digital products. The results indicated that online shopping experience is a strong
positive predictor of online shoppers’ purchase intentions for the two product
categories (i.e. non digital and digital products) examined. The findings indicated
that in case of purchase of non-digital products online, shoppers’ prior e shopping
experience reduces their perception of all type of risk associated with online
apparel shopping. In case of digital products shoppers’ previous online shopping
experience reduces their perception of product, and financial risks associated with
online shopping but prior experience make no difference in perception of privacy
risk in case of digital as well as non digital products. The results also showed that
for both categories of products, previous online shopping experience influence
online shoppers’ purchase intention irrespective of impact of perceived product
and financial risks.
Masoud E. Y. (2013) targeted to investigate the repercussion of perceived risks
(financial risk, product risk, time risk, delivery risk, social risk and information
security risk) on online shopping behavior in Jordan. The perception of financial
risk was explained by threat of losing money and chances of disclosure of credit
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card information, the risk perception associated with product refers to the difficulty
faced in judging the quality of product purchased over Internet, or touching and
examining the actual product over Internet, the delivery risk was described as
suspicion regarding non delivery of the product. The sample for the study was
represented by 395 online shoppers who previously purchased online and mainly
from the popular online stores in Jordan. The study revealed that their existed a
negative relation between financial risk, product risk, delivery risk, and
information security risk and online shopping behavior. The results also showed
that the other two dimensions, perceived time risk, and perceived social risk were
ineffective in effecting behaviour regarding to online shopping. For reaching to
result structured equation modeling method was adopted.
Javadi M. H. M. & et. al. (2012) focused on analyzing the factors affecting
online shopping behavior of consumers in Iran. This goal has been followed by
using a model examining the impact of perceived risks, infrastructural variables
and return policy on attitude toward online shopping behavior and subjective
norms, perceived behavioral control, domain specific innovativeness and attitude
on online shopping behavior as the hypotheses of study. The study identified that
financial risks and non-delivery risk negatively affected attitude toward online
shopping out of all other risk mentioned in the study. Results also indicated that
existed a positive relationship between domain specific innovativeness, subjective
norms and online shopping behavior. Domain specific innovativeness refers to
early adoption of technology and products. Subjective norms talks about influence
of family member and peers experience on online shopping behaviour of
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consumers. Furthermore, it is observed that attitude toward online shopping
positively affects online shopping behavior of consumers.
Suresh A. M. & Shashikala R. (2011) attempted to find out the determinants
putting an impact on customers risk perception associated with electronic
shopping. The geographical area of study was Bangalore city of India and survey
method was used to gather data. Research tool was in form of 17 items scale
comprising of all major areas of concerns. Exploratory factor analysis was applies
on data collected through research tool and it extracted 6 factors. The factors are
vendor related, psychological risk, monetary risk, performance risk, time related
risk and social risk. On the basis of mean scores of factors, monetary risk was
found to be on first position among all the risk perceived by consumers while
shopping online. Further one sample T test was applied to ensure the significant
impact of all factors extracted on online shopping behaviour. Some strategies are
also suggested to overcome these risks in the study.
3.3.2.6 Reviews Related to Shopping Motivation and Online Buying

Behaviour
Nili M. et. al. (2013) worked to find out relationship between hedonistic and
utilitarian values and future purchase intention. For the purpose of this study
preference for online retailer was taken as mediating variable. Structured equation
modeling was used to study this relationship. The result of the work showed that
their prevails a significant relationship between both type of shopping values and
preferences for online retailer which in turn influences the future shopping
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intentions of buyers. The sample for study was taken from Islamic Azad
University, Tehran Science and Research branch and was consist of 300 students.
Topaloglu C. (2012) conducted the study to explore influence of different
shopping values on online search and purchase intentions of consumers of Turkey.
Researcher have taken two type of shopping values – hedonic and utilitarian along
with privacy and security as independent factors and studied their prerogative
effect on online search and intentions to purchase on consumers. Hypotheses for
the study were tested by making use of factor analysis and regression analysis.The
study pointed out that the purchase intention of buyers is influenced by their online
search intention directly and by utilitarian shopping value. Contrary to it hedonic
value influences both consumer intentions to search and to purchase. Likewise it
was also proved that security issues associated with electronic shopping do
influence search and purchase intentions, but influence of privacy factor is nil.
Sarkar A. (2011) in the paper has investigated about two tpe of shopping
motivation –utilitarian and hedonic influences the e shoppers perception of benefit
and risk associated with online shopping system. In order to collect primary data,
samples of 525 adults were taken from different cities of India. Dependent variable
of the study were utilitarian and hedonic shopping motivation and independent
variable are perceived risk and benefits of online shopping system. For reaching to
inferential result of study ,author have used factor analysis and multiple regression.
The overall result of work suggests that customers with high utilitarian shopping
values perceive greater benefits in online shopping. Whereas customer with high
utilitarian shopping value is also likely to perceive greater risks in online shopping.
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Delafrooz N. & et. al. (2010) sets out to examine the factors influencing students’
attitudes towards online shopping in Malaysia. In this paper various independent
factors taken are personality (utilitarian & hedonic personality) and perceived
benefits (convenience, price, and a wider selection, fun, customer service) and
dependent factor taken is attitude toward online shopping. The results indicated
that utilitarian orientation, convenience, price, and a wider selection influenced
consumers’ attitudes towards online shopping. The study was conducted with 370
students of Malaysia.
Hung H. J. & Chun Y. Y. (2010) investigated relation between gender of
adolescents' of Tiawan and online shopping motivations. Two types of shopping
motivations are taken in this study - utilitarian and hedonic motivations. Utilitarian
motivations was signified by convenience, availability of information, choice, lack
of sociality, and cost saving, whereas, hedonic motivations was shown by
adventure, sociality, fashion, value and authority. The result indicated that male
adolescents hold significantly more positive attitudes toward online shopping on
utilitarian motivations (for example, convenience, lack of sociality and cost
saving) than the female adolescents whereas, female adolescent put more emphasis
on hedonic motivations (for example, adventure, sociality, fashion and value)
while shopping online. Other finding of the study was related to ranking of items
signifying shopping motivation. Male adolescents have kept convenience, cost
saving and lack of sociality at first three position among utilitarian values and in
case of hedonic value, adventure, fashion and value were kept on the top. Female
respondents rated fashion, adventure and sociality relating to hedonic values on top
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and among utilitarian set availability of information, convenience and choice were
valued at first position. Thus it could be summarized that there lies gender
differences in web based shopping.
3.4 Research Gaps
1 Online shopping is now not a novel phenomenon. It is an established
concept in foreign countries and is rapidly growing in India too. The review
of literature showed that majority of the researches on online shopping have
been conducted outside the country and if in India then majority of them
were conducted in recent 2-3 years only. Therefore, there is a need to
conduct such study in India.
2 Majority of studies conducted in Indian context are either conceptual or
related to barriers and driver of e-commerce adoption in India. Thus, it
generates a requirement for conduction of an empirical research work in
this field.
3 The empirical researches which have taken place in India were majorly
conducted in metro cities. Methodology wise the sample size is generally
very small which doesn’t seems to generate appropriate generalization of
findings. Thus it suggests about the need for carrying out an empirical study
with comparatively larger sample size.
4 In the research papers reviewed, it was observed that researchers either have
studied relationship between demographic variables and buying behaviour
or perceived risk and buying behaviour or relation between website design
and buying behaviour. None of the study has studied all these relationships
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together. Thus, there is a need of a comprehensive study which togetherly
studies the impact of all these variables on online shopping attitude and
buying behaviour of customers.
5 Consumer behaviour specifically the offline consumer behaviour is such a
topic in which adequate amount of research work has been done till date.
Online buying behaviour is the latest in the field of consumer behaviour.
So, academically there is a requirement to conduct research work in this
field so as to enrich the discipline academically.
3.5 Significance of the Study
Online shopping in India is now not a new phenomenon. Due to the rapid
development of the technologies related to internet the retail industry is also
undergoing a change process and a large number of e-tailers are entering the online
retail industry with their e shops with every new day. Some of these e-tailers are
offering only online shops and some are offering both online as well as offline
shops. Utilisation of internet has given birth to whole new market with new
community of buyersi.e online buyers. As an effect of it the number of people
using internet for shopping is steadily rising, so it is increasingly becoming
important to understand the reasons behind switching of a buyer from offline to
online mode of shopping. Thus this study will help e tailers in discovering the
business opportunities which are acting as major reasons behind such switching of
customers. The online buying behaviour is believed to be different from their
behavior in the traditional shopping environment. In such a scenario, systematic
research is required which will probe the online buying behaviour of the browsers
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and investigate the major factors associated in moulding buyers behavior towards
online shopping. The e-tailers will be benefited by this as it will help them in
making strategy for capturing and retaining online shoppers. This research work
will focuse on figuring out demographic profile of online shoppers of Rajasthan.
Factors which influence the attitude towards online shopping is another area of
concern of this study. The obstacles which may hinder the growth of online
retailing in Rajasthan is also a part of this study. Findings related to obstacles will
help in increasing the contribution of e commerce industry to economy. The focus
areas of this work will provide an opportunity to online retailers to achieve their
business objectives in most efficient manner. It will also help the online buyers by
imparting them with detailed knowledge of online shopping. Study of risk
associated with online shopping system is also a concern area of this research. This
will help e-shoppers by making them aware of different risks so that they can
perform their online shopping activities carefully.This concern area will also help
e-tailers by informing them about the risks perception of e-shoppers.Thus they can
implement the risk aversion strategies.Academically this work will contribute in
the field of consumer behaviour by adding knowledge relating to online buying
behaviour.
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3.6 Objectives of the Study
Based on above discussion this research work aims to achieve following specific
objectives –
• To identify the factors affecting the attitude of online buyers of Rajasthan
towards online shopping.
• To study the demographic profile of the online buyers and to analyse its
impact on the online buying behaviour of customers of Rajasthan.
• To identify the variability in attitude based on buying behavioural traits of
online buyers of Rajasthan.
• To find out the constraints involved in flourishing of online shopping
business in Rajasthan.
• To recognize the most popular websites among the online buyers of
Rajasthan.
3.7 Research Hypotheses

Hypothesis 1
H01: There is no significant impact of factors identified on the online shopping
attitude of customers in Rajasthan.
Ha1: There is a significant impact of factors identified on the online shopping
attitude of customers in Rajasthan.
Hypothesis 2
H02: There exists no variability in the buying behaviour on the basis of
demographic variables.
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Ha2: There exists variability in the buying behaviour on the basis of demographic
variables.
Hypothesis 3
H03: There exists no variance in the attitude of online buyers based on buying
behavioral trait.
Ha3: There exists variance in the attitude of online buyers based on buying
behavioral trait.
3.8 Variables of Study
1. Variables Influencing Attitude
In an online shopping system the buying process starts with search of information
about the products and services. There are many parameters associated with
product displayed on virtual shops which influence attitude of e shoppers towards
online shopping. All those parameters which are taken under purview of this study
are as follows:-
Information about product- There are two main concern areas with reference to
information about product and services i.e. quality and quantity of information
provided by an online vendor. If adequate and correct information is available in
easy to understand language it will built positive attitude towards online shopping
system.
Display of product images and ease of navigation on the website plays great role
in shaping the attitude of buyers for purchase through a website.
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Reviews and Invoice - Along with these two parameters, reviews of buyers and
bill generated after the purchase displayed on B2C shopping website contributes
towards attitude formation for online buying. The larger the number of positive
reviews display on website about a product , the is probability of an conversion of
online searcher into an online buyer. Sometimes it happens that proper bill of
purchase is not display on website or purchase bill displayed doesn’t contain all
details of purchase made. Such type of issues results into negative attitude of buyer
towards online shopping.
Payment modes and miscellaneous issues -Attitude of buyers is also influenced
by modes of payment offered by website. Generally offered modes of payment
include payment through credit card, debit card, electronic payment and cash on
delivery mode. In case of some of products cash on delivery mode is not offered to
customers which lead to negativity of attitude towards online shopping.
Miscellaneous issues like facility for creation of personal account and facility for
interacting in case of query on website, overall attractiveness of a website also
influences the attitude of an e-shopper.
Though there are so many advantages of the on-line shopping, such as timesaving,
immediately information, and convenience, but still a big segment of customers
hesitate from shopping online because of risk associated with it. Risk or perceived
risk is explained as consumer’s perception of the uncertainty and adverse
consequences of buying a product or service online. Past studies have highlighted
many dimensions of risk like financial risk, privacy leakage risk, product risk,
psychological risk, performance risk etc. Studies have also revealed that their exist
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an inverse relation between positive attitude towards online shopping and risk
perception. The higher the level of perceived risk the lower the level of positive
attitude towards online shopping. The purview of this study include below
explained dimensions of risk.
Financial Risk - It represents the likelihood of money loss arising from purchase
made online. There are different reasons behind it. First, it is hard for online
shoppers to determine whether the price paid by them to e-tailer is the lowest
available compared to others. Secondly, what if the products purchased online
doesn’t matches with their expectation on ground of performance. Furthermore,
shoppers are also concerned with hidden cost in form of shipping cost etc. Online
shoppers are also worried about credit card fraud which may occur when payment
is made through credit card. There may be financial loss due to hidden costs,
maintenance costs or lack of warranty in case of fault.
Privacy risk or the security risk is next dimension of risk and is explained as risk
related to disclosure of personal information of an online buyer without its
permission. Identity theft, manipulation of credit card information, wrongly
dissemination of personal information by the vendors and other cyber crime are
some consequences of privacy leakage risk.
Non delivery risk - The third dimension is risk of non delivery of product. It
includes situation like delay in delivery of product and delivery of product
damaged during transportation. Another dimension of risk related to delivery
issues is delivery of wrong product. Sometimes it happens that what is being
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delivered to customer is different from what is being ordered from the customer. It
is observed majorly in case of merchandise involving measurement specification.
Product ordered with specific color and quality as displayed on the web sites may
not match with the delivered product.
Product performance – This is another dimension of risk. Product performance
risk is defined as the loss incurred when a product or brand does not perform as
expected. (Linda C. Ueltschy, 2004). Product performance risk may also result
from a poor product choice because of the shopper's inability to accurately judge
the quality of the product online.
Risk related to return policy - Last in the list is risk related to return policy. The
perception of difficulties relating to return policy is often a area of concern for web
based shoppers. The imagination about process of change, under which
circumstances change of product is possible , the allowed time duration for return
of a product, and the cost involved in sending of merchandise back to the e tailer
are often found areas of worries linked with an online return policy.
All these dimensions of risk highly influence the attitude of buyers toward online
buying. The strength of positive attitude keeps on increasing with reduction in
level of perceived risk associated with online shopping.
Studies related to the field of Consumer behaviour have revealed that demographic
variables vitally influence the attitude of consumers while making a purchase
decision. Demographic variables refers to personal statistics of consumers like
gender, age , education , marital status, occupation, income, family type, location,
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ethnicity, race, lifestyle, personality etc. Researches have proved that with changes
in these personal statistics of consumers their preferences for purchase changes
with ultimate result of changed buying decision. The demographic variables
moderately affect the attitude and online buying behaviour. A moderating variable
is one that has a strong contingent effect on the independent variable-dependent
variable relationship. Under this study first seven demographic variables are
considered.
2. Attitude
Researches have revealed that attitude towards online shopping is a significant
predictor of making online purchases. According to Jahng et al., (2001) attitude in
connection with electronic shopping refers to the consumers’ recognition of the
Internet as a way of doing shopping. An attitude in general is defined as positive or
negative evaluative reaction towards a stimulus such as a person, action object or
concept1. Studies related to field of consumer behavior have highlighted that
consumers’ attitude is an important factor which plays a dominating role in the
decision making process of consumer with reference to purchase. According to
Batra and Ahtola (1990), consumer attitudes are composed of two values or
motives: hedonic and utilitarian. Utilitarian value or motive refers to the
consumer’s task oriented nature. Rational and goal-oriented shopping behaviors
are characteristic features of Utilitarian consumers. Utilitarian consumers assess a
purchase decision on the basis of its functional benefits, such as economic value,
convenience, time savings. Hedonic value or motive refers to the consumer’s fun
seeking and entertainment behaviour. Fantasy, happiness, sensuality, and
enjoyment are the features which characterizes the hedonic value. Consumers who
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are hedonist have experiential shopping behaviour. Hedonists not only gather
information by shopping online but also seek fun, excitement, arousal, joy, festive,
escapism, fantasy, adventure, etc. Researchers who have conducted studies using
these two shopping motivation includes Babin, B. J., Darden, W. R., & Griffin, M.
(1994). , Childers, T. L., Carr, C. L., Peck, J., & Carson, S. (2001). , Bhatnagar, A.,
& Ghosh, S. (2004), Fiore et al., (2005), Kim, 2006, To et al. (2007), Sarkar
(2011), etc.
Attitude in the present study is measured by using 5 point likert scale wherein
the extremes - strongly agree (denoted by 1) represent strongly positive
attitude and strongly disagree (denoted by 5) represent strongly negative
attitude towards online buying. Attitude is measured by means of below
mentioned items relating to utilitarian and hedonic shopping motive. The
items representing shopping motivation are selected based on scales used by
Narges Dela frooz & et. al. (2010), Huang Jen-Hung and Yang Yi-Chun
(2010), Abhigyan Sarkar (2011), Ceren Topaloğlu (2012).
Table 3.4 : Statements denoting Utilitarian and Hedonic Shopping Motive (Attitude)
Utilitarian Shopping Motive Hedonic Shopping Motive
I can buy things whenever I want Online shopping is an adventure
I can buy things from wherever I want I can extend personal relationship online by
exchanging information with others
I can access wide selection online I can keep up with the new fashion
and the latest trends
I can access many brands online I enjoy looking for discounts online.
I can access many products online For most of the time, I go online shopping
when there are sales.
Latest & large quantity of product My online shopping attitude is influenced by
information can be assessed family members ,friends & peers
It makes me free from salesman
It makes me free from social interaction
I don’t get embarrassed if I don’t buy
I can compare price easily via internet
I spend less money while shopping
through internet
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3. Online Buying Behaviour
Behaviour and attitude are two interlinked concepts. Theories have proved that
buying behaviour is a dependent variable being dependent on independent variable
attitude. A positive attitude indicates the positivity of buyer’s mindset with
reference to making of a purchase decision. It simply suggests that if a buyer have
positive attitude towards online shopping system it will generally go for purchase
through online shopping medium. Based on knowledge acquired from literature
review following attributes are taken to represent the online buying behaviour of
shoppers for this study –
• Frequency of Online Purchase
Buying frequency in common parlance refers to time interval at which a customer
is making purchase from online shopping front. Buying frequency represent the
buying behaviour of an online shopper. Like the offline shopping, the e buyers also
shows variation in their buying frequency from online shopping stores. The e
buyers ranges from heavy shoppers like those buying every month or more than
once in a month to light shoppers i.e. buying once in six months or a year.
• Online shopping expertise of customers
Customers doing online shopping can be categorized into different categories
based on their experience of performing online shopping. Customers who have
performed large number of online product purchase transactions in small duration
can be referred to as highly experienced buyer. Customer on another extreme are
referred to as beginners and those in between can be called as buyers with little
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experience. Online shopping expertise like online buying frequency is another
indicator of online buying behaviour.
• Money spent for online purchase by customers on last six month’s
purchase.
Money spent by online customers is one more way of representing behaviour.
With reference to online shopping two type of behaviour are observed either the
customer will spend large amount of money in one or several transactions or they
will spend very small amount of money in one or several transactions.
3.9 Research Design
Research design portrays the blueprint of a research study which prefigures that
what researcher will do from hypothesis formulation to analysis of data. A
research design presents research problem, hypotheses, variables of study,
experimental design, methods for data collection and a statistical analysis to be
used in a manner that aim to combine relevance to research purpose with economy
in research procedure. This research work is exploratory, descriptive and empirical
in nature. Exploratory research (ER) is an examination into a subject in an
attempt to gain further insight. In it researcher has an idea or has observed
something and seeks to understand more about it. Descriptive research, also
known as statistical research, describes data and characteristics about the
population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how. Empirical research in which
knowledge is gained based on experimentation and observation. In it a working
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hypothesis is tested using observation and experiment. This work is exploratory
as it attempts to explore the online buying behaviour of customers of
Rajasthan based on knowledge acquired from literature review. It is
descriptive in the sense that it has used descriptive statistics to explain the
various parameters of online shoppers. This study is exploratory in the nature
as some of the hypotheses are stated relating to online buying behaviour
which are tested by using different statistical tools.
3.10 Sampling Design
A sample design is a definite plan for obtaining a sample from a given population.
It refers to the technique or the procedure to be adopted in selecting items for the
sample to be used for conducting the research work. It includes following-
3.10.1 Universe
The first step involved in developing sample design is to clearly define the number
of cases, technically known as the universe. A universe may be finite or infinite.
The Universe of this study is finite and is represented by all the customers doing
internet shopping in Rajasthan.
3.10.2 Sampling Unit
The sampling unit for present research work is represented by online shoppers
from selected seven cities of Rajasthan.
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3.10.3 Sampling Method
The sampling method used for drawing sample for this study is stratified random
sampling method. Stratified random sampling is a method of sampling that
involves the division of a population into smaller groups known as strata. In
stratified random sampling, the strata are formed based on members' shared
attributes or characteristics. A random sample from each stratum is taken in a
number proportional to the stratum's size when compared to the population. These
subsets of the strata are then pooled to form a sample. Stratified random sampling
is a probability sampling method.
3.10.4 Sample Size
A sample of size 2600 online shoppers from selected cities of Rajasthan was
proposed for conducting this study which is derived in the following manner.
Table 3.5: Sample Selection

Sample Selection
City City Child Literac Populati Internet Sample
Populati populatio y rate on of Users(5%* Size(1
on n (%) literates of literate % of
population) interne
t users)
Ajmer 542,580 59,437 87.53 422,913 21145 211
Bhilwara 360,009 45,832 84.27 264,762 13283 132
Bikaner 647,804 82,264 79.86 451,663 22583 225
Jaipur 3,073,350 378,788 84.34 2,272,724 113636 1136
Jodhpur 1,033,918 126,543 81.56 740,011 37000 370
Kota 1,001,365 118,139 83.65 738,795 36939 369
Udaipur 451,735 47,352 90.66 366,598 18330 183
Total Sample Size 2626 ≈
2600
Source: www.census2011.co.in/census
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*As per Internet Live Stats(2012) the average percentage of internet users in India
is 7.1 %.Looking into the literacy rate of 66% in Rajasthan which is less than the
average literacy rate of India (74.04%),the average percentage of internet users in
Rajasthan has been taken as 5% of the literate population for the purpose of this
research.
The sample size proposed initially was 2600 online shoppers but after collection of
primary data ,only 2481 responses were found suitable for further analysis. The
details of 2481 respondents is shown below.
Table 3.6: Composition of Sample After Collection of Primary Data
Name of Cities No. of Respondents to No. of Respondents who

whom questionnaire is returned the
distributed questionnaire
Ajmer 211 197
Bhilwara 132 118
Bikaner 225 198
Jaipur 1136 1130
Jodhpur 370 354
Kota 369 324
Udaipur 183 160
Total 2626 ≈ 2600 2481
3.11 Data Collection Method
In a research work two type of data i.e. primary data and secondary data are used
to collect information. For this study, both primary data and secondary data
sources were used, but the major source of information is primary data.
3.11.1 Primary Data
Primary data are those which are collected for the first time at the time of research
work and are considered original in character. The data used for the present study
is primary in nature. The primary data for this study was collected through the
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field survey by distributing questionnaire during the period February 2015 to
December 2016.
3.11.2 Tool for Primary Data Collection - Questionnaire
The primary data for present work was collected through a structured
questionnaire. The questionnaire of this work has been divided into four sections:
1, 2,3 & 4. Section-1dealt with respondents’ socio-economic, demographic and
geographic characteristics. This section also has questions related to buying
behaviour. Their responses are measured using nominal and interval scales.
Section-2 contains a question related to online shopping motivation of respondents
which is indicative of shopper’s attitude towards online shopping. Section –
3carries questions about risk in online shopping system. Section 4 consists of
questions linked to website related issues and general questions. The questions in
questionnaire are dichotomous, multiple choice questions, statements on five –
point Likert scale, and open ended questions. Using Likert’s 5-point scale,
responses to items were scored in such a way that a response indicative of most
favourable was given the lowest scores and vice versa (strongly agree = 1 and
strongly disagree = 5).At initial level questionnaire was constructed by taking
literature review and reviews received from e shoppers through discussion as its
base. Final draft of questionnaire was developed by incorporating changes
indicated by suggestions from respondents of pilot testing and observation. Figure
3.4 represents the methodology followed to develop the questionnaire. There after
Table 3.6 represent the snapshot of questionnaire.
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Figure 3.3: Research Methodology Adopted for Development of

Questionnaire
Discussion with online Literature Review

customers
Identification of dimensions
associated with online buying
behaviour
Design of survey instrument by

careful selection of items
Pre-testing of the instrument by

Academicians
(Content Validity)
Pre-testing of the instrument

objective through pilot study
Validity and Reliability

Testing
Modification, refinement and

Finalization of the instrument
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Table 3.7: Snapshot of Questionnaire

Section Description Variables Question No.
These sections contain Demographic Q.1 to Q.8
questions related to Variables (Demographic
demographic profile and And Variables)
Buying Behaviour of Buying Q 10, Q11, Q 15, Q16
1
respondents and about Behaviour (Buying Behaviour)
shopping trend of online Q12 , Q13,Q14
shoppers. (shopping trend of
online shoppers)
This section deals with Attitude towards Q 17
attitude which is defined online shopping
2 by shopping motivation
of online shoppers.
This section belongs to Variables Q18, Q 19

3 risk associated with influencing
online shopping system. attitude
This section is about Variables Q 20, Q21
design of online shopping influencing (Website design)
website and general attitude Q22to Q 25
4
issues related to online (general issues related
shopping system to online shopping
system)
3.11.3 Pilot Testing
Pilot study was conducted with 100 respondents from Jaipur. The purpose behind
conducting pilot survey was to analyse the reliability and validity of research tool
to be utilized for conduction of entire study. The results of pilot study are
discussed in following paragraphs. On the basis of pilot study some changes were
incorporated in final questionnaire before using it for full fledged survey.
3.11.4 Analysis of Reliability of Research Instrument
Reliability is a characteristic of the research instrument itself. Reliability in
questionnaire studies, relates to the ability of the tool to produce the same results if
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tested repeatedly. A reliable questionnaire is one that would give the same results
if used repeatedly with the same group. Reliability of questionnaire can be tested
by means of Cronbach’s Alpha coefficient.
3.11.5 Cronbach’s Alpha
Reliability or internal consistency of a research instrument is measured by means
of Cronbach’s alpha statistic. It is generally used when a questionnaire is consists
of questions designed on Likert scale. In this study there are three questions
designed on likert scale. Reliability of a question is indicated by value of
Cronbachapha coefficient. The value of alpha (α) may lie between negative
infinity and 1. However only positive values of α make sense. Generally, alpha
coefficient ranges in value from 0 to 1. The value of Cronbach alpha coefficient
greater than 0.7 is considered to be in acceptable range. The value of alpha
coefficient for the three questions in questionnaire of this study is shown below in
the table 3.7.
Table 3.8: Reliability Statistic

Cronbach's Alpha
Number Cronbach's
Variable Value Based on
of items Alpha Value
Standardized Items
Shopping Motivation 17 .859 .874
Risk associated with
8 .856 .856
online shopping system
Website design 13 .756 .764
The table above indicates that the value of cronbach alpha coefficient for the three
variables is inacceptable range. Thus it can be inferred that the research
questionnaire for this study is a reliable instrument.
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3.11.6 Secondary Data
Secondary data is the one which has already been collected and analyzed by
someone else. Usually this analyzed data is available in the published form. The
secondary data for this study was collected from various data sources like inflbnet,
ebsco, shodhganga, different websites like world internet status etc., technical
journals, magazines, and manuals and research websites and reports related to E-
Commerce industry specifically PWC reports, E & Y report of E-Commerce,
IAMAI reports.
3.12 Process & Tools for Data Analysis
Statistical tools play important role in every research. These tools help the
researcher in analyzing the data and drawing conclusions thereof. To prepare the
data for statistical analysis below mentioned procedure has been adopted.
• The raw data has been tabulated, coded and then feeded in IBM SPSS
version 22.
• Normality of data has been checked by applying Kolmogorov-Smirnov test
for normality.
• To meet with the problem of multicollinearity, the variables have been
grouped into factors using factor analysis.
• Validity of questionnaire has been checked using KMO and Bartlett’s Test
of Sphercity.
112
Analysis of the data have been done in two parts i.e. descriptive analysis &
empirical analysis with the help of various statistical tools mentioned below-
A. Descriptive Analysis
Frequency, Percentage, Mean
Charts
B. Empirical Analysis
Kruskal Wallis Test
Mann Whitney Test
Multiple Regression Analysis
Detailed Information of Analysis
1. Determination of factors affecting attitude:
For the achievement of said objective, exploratory factor analysis has been
applied. Factor analysis is a statistical approach that can be used to analyse
interrelationships among a large number of variables and to reduce these large
number of variables into a smaller set of factors. The objective of factor analysis is
to find a way of squeezing the information contained in large number of original
variables into a smaller set of variables (factors) with a minimum loss of
information. During application of factor analysis, first of all reliability of
questionnaire is tested. Reliability is defined as the degree to which the given
113
concept of measurement produces the same results with the same tool (Corbetta,
2003; Best & Kahan, 2006).There are three prevalent methods of measuring
reliability of a questionnaire; test re-tests method, split-half and internal
consistency method(Cohen, Manion & Marrison, 2012). In present research,
internal consistency method has been used to find out reliability of the
questionnaire. In internal consistency method, the reliability of instrument is
interpreted by finding out the value of cronbach’s alpha coefficient. Generally,
alpha coefficient ranges in value from 0 to 1. The value of Cronbach alpha
coefficient greater than 0.7 is considered to be acceptable.
Once reliability is ensured, the next step is to generate a correlation matrix. A
correlation matrix represents combination of numbers which gives the correlation
coefficients between a single variable and every other variable in the investigation.
The principal diagonal of matrix is consists of value 1s because correlation
coefficient between a variable and itself is always 1. The correlation coefficients
above and below the principal diagonal are the same. The next step is to apply
KMO and Bartlett’s test of sphericity for measuring sampling adequacy for
application of factor analysis on data. The value of KMO or Kaiser-Meyer-Olkin
Measure of Sampling Adequacy varies between 0 and 1. The value of KMO
between0.6 to 1 provides a positive indication about adequacy of sample for
conduction of factor analysis. The Bartlett's Test of Sphericity is applied for
testingthe null hypothesis that the correlation matrix is an identity
matrix. Rejection or acceptance of null hypothesis is indicated by value of
significance level. A value less than 0.05 of significance level suggests about
114
rejection of null hypothesis. Taken together, these tests provide a minimum
standard which should be passed before a conduction of factor analysis.
The next stage presents table of communalities. The values in the table represent
variance of each variables explained by the extracted factor. Generally used
method of extraction is Principle Extraction Method. The communalities which are
more than 0.50 are considered for further analysis.
Next in series is the table explaining total variance. This table is consists of three
segment – Initial Eigen values, Extraction Sums of Squared Loadings and Rotation
Sums of Squared Loadings. Eigen values represent the variances of the factors.In
Extraction Sums of Squared Loadings segment the rows correspond to the
number of factors retained. Only those factors are retained whose eigen values are
more than 1.The values in this panel of the table will always be lower than the
values in the left panel of the table, because they are based on the common
variance, which is always smaller than the total variance. Rotation Sums of
Squared Loadings is the last segment of table which represents the distribution of
the variance after the varimax rotation. Varimax rotation tries to maximize the
variance of each of the factors.
Factors which retained can also be represented by means of a graph known as
screeplot. It is graph between eigen value and factor number. The graph starts to
become flatten from those factors whose value is less than 1.
Component matrix is the next step to be reached in factor analysis. It represents the
loading values for each variable on the factors extracted. A higher value of factor
115
loading signifies greater contribution of the variable towards factor. Factor loading
having value less than 0.5 are not taken for further consideration.
Rotated component matrix achieved after Component matrix, shows which
variables load on which factor or components after rotation. The linkage between
the variables and factor is indicated by value of factor loading values. The higher
the value, the stronger is the linkage of that variable with one particular factor. The
method of Rotation utilized is indicated at the bottom of rotated component matrix.
In this study rotation method used is Varimax with Kaiser Normalization.
2. Study of impact of factors identified on the attitude of online buyers:
One hypothesis linked to the objective of searching out the factors affecting online
buying behaviour has been formulated in the study. The hypothesis deals with the
study of impact of factors identified on the attitude of online buyers. For the
purpose of testing this hypothesis, multiple regression analysis has been applied.
Since the population of Rajasthan is very huge, so level of variability among the
respondents is also very high. In order to reduce the variability only seven cities
have been selected for collecting the sample and the hypothesis is tested ignoring
normality assumption of multiple linear regression analysis. Multiple Linear
Regression Analysis is a form of predictive modeling technique. It is used to
investigate the relationship between a dependent (target) and independent
variable (s) (predictor). This technique is also used for indicating the strength of
impact of multiple independent variables on a dependent variable. Since there is
linear relationship between the dependent variables and multiple independent
116
variables, multiple linear regression has been applied on data of present research to
know about the strength of impact of multiple independent variables on dependent
variable (customer attitude). There are several methods of conducting multiple
linear regression. In case of present study stepwise method will has been used. On
application of linear regression on data, SPSS have produced several tables of
output. Among all the tables, three tables, namely model summary table, ANOVA
table & coefficient table, are most useful in drawing interpretation of this research.
Model Summary table provides the R and R2 values. The R value represents the
simple correlation. The R2 value (the "R Square" column) indicates how much of
the total variation in the dependent variable, can be explained by the independent
variable. This table also provides information about Durbin-Watson measure. If
the Durbin-Watson measure value lies between 1.5 to 2.5 than, it indicates that
there exists no auto correlation in the data.
The ANOVA table, reports how well the regression equation fits the data. This
table indicates whether the regression model is significant in predicting the
dependent variable or not. Fitness of regression model is indicated by value of p,
shown in "Sig." column in the table. When p value is less than 0.05, it indicates
that, overall, the regression model statistically significant in predict the outcome
variable.
In the Coefficients table, the B column contains the unstandardized beta
coefficients that depict the magnitude and direction of the effect of predicting
variables on the outcome variable. This column in coefficient table tells about the
117
strength of effect of each independent variable in predicting the dependent
variable. This table also helps in creation of regression equation in below
mentioned format.
The regression equation is written as Y = a + bX
Where
• Y is the value of the Dependent variable (Y), what is being predicted or
explained.
• a or Alpha, a constant; equals the value of Y when the value of X=0
• b or Beta, the coefficient of X; the slope of the regression line; how much Y
changes for each one-unit change in X.
X is the value of the Independent variable (X), which is predicting or explaining
the value of Y.
3. Study of demographic profile :
For the purpose of studying the demographic profile of online shoppers,
descriptive statistics, tables and charts have been used. Descriptive statistics
provide a concise summary of data numerically as well as graphically. Various
descriptive statistical tools used in the research include frequency, mean, mode,
percentage along with charts or graph of different types.
118
4. Analysis of Impact of demographic variables on online buying
behaviour:
In order to analyse the variability in online buying behaviour of respondents based
on demographic variables, Kruskil wallis or Mann Whitney test has been used
sample independent or Kruskal-Wallis test is a non-parametric test used to find out
whether there exists statistically significant differences in two or more group of
independent variables or not. In this research, Kruskal Wallis test has been
applied to assess the variability in online buying behaviour based on demographic
variables specifically in case of age, education, occupation, income and type of
family of customers.
For assessing variability of online buying behaviour based on gender and marital
status of respondents, Mann Whitney test has been used .As in case of these two
independent variables only two categories are present.
5. Analysis of variability in attitude based on behavioural traits:
For assessment of the variability in attitude of online buyers based on their
behavioural traits Kruskal-Wallis H test has been applied in the study.
6. Finding out the constraints of Online shopping system :
The constraints associated with online shopping system have been identified by
making observation of responses provided by respondents for the question related
to constraints of online shopping system in questionnaire.
119
7. Recoginisition of popular website:
The objective of identifying top ten popular website will also be achieved by
making observation of responses provided by respondents for the question related
to raking of websites in the questionnaire.
120
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CHAPTER 3

3.1 Research & Research Methodology

technique of thinking, employing specialized tools instrument and procedures to

obtain a more adequate solution to a problem. According to Clifford Woody

research comprises problems definition and redefinition, hypothesis formulating or

coating solutions; data collection, organizing and evaluation of data; making

conclusions derived so as to know whether they fit the hypothesis formulated.

Thus the terminology “research” relates to the ordered sequence consisting of

the data so as to reach to certain conclusions either in the form of solutions(s)

towards the concerned problem or in certain generation for some theoretical

formulation. The present chapter is aimed at explaining the research Methodology

Research Methodology is a way to find out the result of a given problem on a

specific matter or problem that is also referred as research problem. In

Methodology, researcher uses different criteria for solving/searching answer to the

given research problem. Research methodology is needed because it facilitates

smooth running of various operations, there by making research as efficient as

possible, yielding maximum information with minimum expenditure of efforts,

time and money. Generally adopted research methodology or research process by

researchers is shown below in figure.

Figure 3.1 Research Process

Source: C. M. Chaudhary (2009). Research Methodology, p 15, RBSA Publisher, Jaipur.

Figure 3.2: Research Methodology adopted for Conducting this research

3.2 Research Problem and Research Questions

behaviour of customers, buying process, impact of attitude on buying behaviour,

to be answered. Some of them which resulted in this study are as follows -

1) What are the reasons for growth of online retailing?

2) Who are online shoppers in terms of demography?

3) What factors influence customer’s attitude to shop online?

4) Is there any relation between attitude and buying behaviour of online

5) What are the hurdles in the way of online shopping?

shoppers of Rajasthan as sampling unit for the study.

3.3 Literature Review

A Literature Review is a systematic, explicit, and reproducible method for

identifying, evaluating, and synthesizing the existing body of completed and

recorded work produced by researchers, scholars, and practitioners. (Arlene Fink,

convenience purpose review is done by classifying it into different categories

relating to various field of the present work.

Table 3.1: Topic-wise Classification of Papers Reviewed

Chart 3.3 Topic-wise Classification of Papers Reviewed

Table 3.2: Year-wise Classification of Papers Reviewed

S. No. Year No. of Papers Reviewed

Year-wise Classification of Papers

Chart 3.4 Year-wise Classification of Papers Reviewed

3.3.1 Snap Shot of Literature Review

3.3.2 Detailed literature Review

3.3.2.1 Review Related to Growth of E-Commerce and E-Tailing in India

effortless and joyful shopping experience, no time limitation, ease of price

comparison, Internet Boom, rising living standard , Availability of wider range of

delivering the goods cost-effectively, problems with shipping, language problem.

necessary to develop a sustainable environment.

visibility, and convenient operations. They have highlighted that E-Commerce is

as a preferred payment method. Increasing demand for international consumer

products (including online purchases from international retailers). Reasons coated

Commerce for Indian merchants.

revolution. Reduction in subscription rates of broadband connection along with

of this is day by day increasing population of “netizens. The changes in lifestyle of

related needs through the internet. As an implication E-Commerce players are

as shoppers only when they apply innovative marketing strategies.

increase exponentially in coming years in India’s emerging market . The journey

increase in spends on household appliances and luxury products. While segments

jewelry, electronic appliances and hardware products have shown increment in

18 per cent and is only likely to grow further.

Ray S. (2011) concluded in the paper that e-commerce in India is in burgeoning