In a country like India, online experiences are still looked up as complex and uncomfortable. This is evident when one sees that online buying in India is popular only among the select urban youth (though rural/non metro consumers are coming into the scene fast). There are evolving customer expectations, fears and inhibitions. Amidst such a scenario, the seller would have to devise strategies that are based on sound consumer behavioral research. By and large, studies (including the 2 mentioned in this report) find that convenience, online store environment, shopping enjoyment, customer service, and trust are vital in influencing consumer behavior towards willingness to buy and patronage of online retail stores. It is observed that customer service and trust levels (though it is changing now) are low and there is an urgent need to address these concerns. Some of the suggestions this report proposes for the fledgling e-tailing industry in India are as follows:
1. E-tailing in India can be a success if the eTailers change their business models and understand the “Determinants of Shopper Behavior in E-tailing”- E-tailers should create economic value for the Indian customers rather than a curiosity value.
2. Lack of trust and privacy concerns prevent a lot of consumers from making online purchases. For the metro users who are more educated and knowledgeable, data insecurity is not that much of a concern. However, it is a major concern for the not so educated non-metro/semi rural users. Therefore it is the need of the hour for e-tailers to adopt security measures and inculcate a sense of trust among online shoppers that data provided during online transactions will not be misused.
3. Adequate attention needs to be paid towards customer service, distribution, and logistics and these should be integrated seamlessly not only with the company’s existing website, but also with the company’s entire operations, online and offline. Importance should be paid on “Post-transaction” elements such as delivery schedules, warranty services, return and exchange policies, post-sales services and related technical support. Other service features such as free return shipping, alerting customers of their order status through email and recommending other products that they may genuinely be interested in (cross-selling and up-selling) are the means to customers’ delight and loyalty.
4. Online retail stores do not have standardized designs in comparison to the physical retail stores and product catalogues. Therefore, different user behaviors (navigation schemes) need to be understood by eTailers in order to avoid navigation hiccups.
5. Since shopping is still a ‘touch-feel-hear experience’, e-tailers need to create such environment as it is in a physical store by creating novel web designs and portals, sophisticated web atmospherics, e-mail updates, and live interactions over the Internet. Website design elements and aesthetics, as well as customization have an impact on consumer psychographics and consumer interest in buying online and the e-retailer needs to pay attention to this.
1. E-tailing in India can be a success if the eTailers change their business models and understand the “Determinants of Shopper Behavior in E-tailing”- E-tailers should create economic value for the Indian customers rather than a curiosity value.
2. Lack of trust and privacy concerns prevent a lot of consumers from making online purchases. For the metro users who are more educated and knowledgeable, data insecurity is not that much of a concern. However, it is a major concern for the not so educated non-metro/semi rural users. Therefore it is the need of the hour for e-tailers to adopt security measures and inculcate a sense of trust among online shoppers that data provided during online transactions will not be misused.
3. Adequate attention needs to be paid towards customer service, distribution, and logistics and these should be integrated seamlessly not only with the company’s existing website, but also with the company’s entire operations, online and offline. Importance should be paid on “Post-transaction” elements such as delivery schedules, warranty services, return and exchange policies, post-sales services and related technical support. Other service features such as free return shipping, alerting customers of their order status through email and recommending other products that they may genuinely be interested in (cross-selling and up-selling) are the means to customers’ delight and loyalty.
4. Online retail stores do not have standardized designs in comparison to the physical retail stores and product catalogues. Therefore, different user behaviors (navigation schemes) need to be understood by eTailers in order to avoid navigation hiccups.
5. Since shopping is still a ‘touch-feel-hear experience’, e-tailers need to create such environment as it is in a physical store by creating novel web designs and portals, sophisticated web atmospherics, e-mail updates, and live interactions over the Internet. Website design elements and aesthetics, as well as customization have an impact on consumer psychographics and consumer interest in buying online and the e-retailer needs to pay attention to this.
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