Indian consumer psychology

Consumer behavior is affected by consumer demographic traits, psychological characteristics and situational factors. A consumer’s online shopping behavior like traditional buying behavior is influenced by psychological factors such as motivation, perception, learning and beliefs, and attitude. Age, gender, education, and income along with personality styles have significant effects on attitude formation in the context of online retailing. Consumer motivational patterns (in terms of needs and involvement), learning patterns (previous experiences with online shopping), perceptual processes and opinions, social and group influences, lifestyles and cultural issues—all have an effect on the consumers’ attitude to shop online.

Today, it is necessary to identify the elements affecting the online consumer’s behavior so that marketers can focus on such elements while formulating their strategies, and to give the online consumer a total ‘web experience’ which includes stages of information search, product comparison, evaluation and selection, as well as the interaction and transaction that occurs between a buyer and a seller.

The following table provides the ranking of the factors which affect Indian online purchase behavior. (Survey taken end of FY2008)

Key Findings from the survey

• Most consumers perceive online shopping as a time saving convenient option. An online buyer saves time, effort and money when buying online as compared to buying from physical stores.
• Few of them are of the opinion that availability is an important benefit derived by an online consumer.
• Quite a few believe that easy navigation of the site and attractive designing is the key to ensuring repeat customer visits. Excitement and joy associated with shopping online because of attractive layouts and designs lay emphasis on the hedonic pleasures of a consumer which an etailer should cash on.
• Only half of them believe that the product features and their display determine the number of visits/purchases done from a portal.
• Most felt that lack of tangibility is one of the main reasons for non popularity of online shopping and online shopping does not provide enough variety to the consumers. Inability to try a product (Touch-Feel-Try Experience) before buying acts as a barrier for some internet users. In addition, often the product or the service delivered differs from the standards displayed on the website. The customer is not sure of the quality of the product unless it is delivered to him and post delivery of the product, it is sometimes a lengthy process to get a faulty or an unsuitable product changed. Thus, unless the deliverables are as per the customers’ expectations, it is hard to infuse more credibility in the e-Tailing market.
• Most are of the opinion that On-line shopping does not have scope in India and is not secure and reliable.
• About 60% of the respondents agreed that attractive offers (deals/discounts) force a consumer to purchase online. What attracts customer attention to online stores is the ‘great deals’ ‘best prices’ and ‘better bargains’.
• Few believed that delivery time and mode offered are the topmost factors in deciding on a particular online service provider.
• Surprisingly 60% of respondents felt that data insecurity is no more a concern for online consumers. The faster this fear is dispelled, the better it is for the online retailers.
• Quite a few corroborated that Repeat purchase & Impulse purchase are important features of online purchase behavior. To that end, website design plays an important role in hooking a customer. Better interactivity and aesthetics, ease of use/search, sufficient product information, and intuitive product comparison charts – all play critical role in the complete “Web Experience”.
• Surprisingly for most of the respondents, Online shopping experience is similar to the usual shopping experience. eTailers should incorporate innovative ideas in the website to replicate the actual physical shopping experience.
• All agreed that not mentioning any clear cost break-up of the products/services available online discourages a consumer to shop online.
• There has been a significant change in the attitude of an average Internet user. He is ready to experiment to suit his convenience. Truly, an average user is buying a variety of products online. These may vary from low-end items like books to high-end items like laptops; less involving items like flowers to high involvement items like jewelry. However, consumers will display a bias for brands that they know well and have had a good experience in the past. Thus products of brands with a favorable bias will score over the products of less popular brands.