Wednesday, January 20, 2010

Attitudes and Preferences towards online shopping - non metro towns

A recent study (2008) was conducted in the state of Punjab in order to understand the attitudes and preferences towards e-shopping for Indians located in the non-metro towns and cities. This study (Factor Analysis-Eigen Value approach) used random sampling technique with a sample size of 900 respondents comprising businessmen, academicians and students. The following were the key findings.

1. Product Information and Reliability emerged as the most important factor of the research. The major elements which constitute this factor include: awareness of the media, whether the web provides more information than other media, and the detailed product information. The results depict that there is a general preference of people for using internet as compared to the traditional media. The quantity, relevance and authenticity of information provided by the retailer are important factors that affect the building of positive attitudes in consumers, to buy online. Consumer purchases are often based on the web appearances and information of the product or service offering. The marketer needs to customize the information about products and services to meet the customer’s needs and wants.

2. Audience attitude towards e-shopping - Website design and nature: Few factors such as responsiveness of the websites, Positive outcomes, Influencing power, data security and good information provider emerged to be of great importance to the consumers located in the non metro cities and towns.

3. Attitude towards E-shopping is influenced by many factors but two factors, namely product information and reliability, and website design and nature were considered more important for the non-metro consumers.

This analysis points out that, in the non metro towns and also in general there is a growing awareness of getting more information through websites. There is an increasing trend of using Internet for booking tickets, buying books and music but the scene has not transformed dramatically in case of India. A slow transition is visible in the younger age group (21-35 years) where the responsiveness and interactive web sites provide them more opportunities for customized products.

Though a majority of Internet users look for information on various product categories online, a relatively smaller portion of them actually buy online. In this study, only 11.87% of the respondents prefer to use the web for shopping purpose. However, a slight change in attitude is visible as the respondents have given higher rank to websites providing product information and the next rank has been assigned to website design and nature. E-marketers have to target the young age group and convert them into potential buyers. Interactive responsive websites can play an important role here. Interactive tools lead to easier access for the consumers, facilitate two-way communication and thus have favorable effects on the overall consumer purchase decisions.

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