Chapter 1

Introduction
1.1 Background of the study
Online shopping is the process whereby consumers directly buy goods or services
from a seller in real-time, without an intermediary service, over the Internet. It is a
form of electronic commerce. The sale or purchase transaction is completed
electronically and interactively in real-time such as in Amazon.com for new books.
However in some cases, an intermediary may be present in a sale or purchase
transaction such as the transactions on eBay.com.
An online shop, e-shop, e-store, internet shop, web shop, web store, online store, or
virtual store evokes the physical analogy of buying products or services at a bricks-
and-mortar retailer or in a shopping center. The process is called Business-to-
Consumer (B2C) online shopping. This is the type of electronic commerce conducted
by companies such as Amazon.com. When a business buys from another business it is
called Business-to-Business (B2B) online shopping.
A large percentage of electronic commerce is conducted entirely in electronic form
for virtual items such as access to premium content on a website, but mostly
electronic commerce involves the transportation of physical items in some way.
Online retailers are sometimes known as e-trailers and online retail is sometimes
known as e-tail. Almost all big retailers are now electronically present on the World
Wide Web.
Consumer behavior research is the scientific study of the processes consumers use to
select, secure, use and dispose of products and services that satisfy their needs. The
consumers are always found with distinct needs and wants which may be because of
their consumption pattern, demographics (like age profile, working patterns,
incomeand expenditure, occupation), lifestyle changes, buying process, shopping
behavior, shopping motivations and objectives, and changing consumer etc. (Dalwadi
et al., 2010). Knowledge of consumer behavior directly affects marketing strategy
(Anderson et al, 2005). This is because of the marketing concept, i.e., the idea that
firms exist to satisfy customer needs. Firms can satisfy those needs only to the extent
that they understand their customers. For this reason, firms must incorporate
knowledge of consumer behavior into every facet of a strategic marketing plan.
People’s motives for shopping are a function of numerous variables, many of which
are unrelated to the actual buying of products. Shopping experience is a utilitarian
effort aimed at obtaining needed goods and services as well as hedonic rewards
(Kaurand Singh, 2007). Olsena and Skallerud (2011) mentioned that retail shopping
experience is associated with utilitarian and hedonic values. The modern consumer
behavior model, in addition to considering traditional explanatory variables such as
needs, brand attitudes, and the impact of shopping behavior on promotions, also
examined utilitarian and hedonic consumer motives. In addition to that, the modern
consumer behavior models include the impact of personal and social factors
influencing actual shopping motives (Kaur and Singh, 2007).
The apparel purchase decision making is complex. The complexity of decision
making is depended upon the consumers’ level of involvement with a product
category as well as the impact of other situational variables. The degree of
involvement in the decision-making process depends more on the individual’s
attitude towards the product than on the product characteristics itself. Some individuals
are highly involved when purchasing apparel items, while others may experience it as
a routine process. Consumer purchase decision making models should reflect the
variables influencing the shopping behavior. The apparel shopping decision making is
not similar to decision-making with regard to other products. Apparel shopping
behavior is influenced by a very large number of variables (Krishna, 2011).
These variables can be classified as conscious and subconscious, market dominated
and consumer dominated or a fusion of the two, thus increasing the complexity
thereof. Preez (2003) mentioned that the majority of previous studies lack the
identification of variables affecting consumer purchase decision making for apparel
products. Market-dominated, consumer-dominated and market and consumer
interaction variables should be considered to find their impact on purchase decision
making of apparel products.
Today, several brick and mortar traditional enterprises have included the used of
internet in their channel mix. The evidences proved that the retailers are using the
internet as a supplement to traditional bricks and mortar purchasing. Recent trends
suggest that the click and brick, multi-channel approach to retailing is experiencing
more success
A large amount of literature is available on attributes of in-store as well as online
apparel shopping environments, but those attributes are vast and fragmented. The
selection criteria for online and in-store shopping are retail category (Sinha and
Benerjee, 2004) as well as product category specific (Lee and Kim, 2008). In-store
and Non-store buying is different in certain manner. Both types of shopping generate
different shopping experiences for consumers. In addition to this, the evidences
suggest that buying experiences of consumers differ between in-store and online
shopping (Rajamma et al., 2007). So, this study includes studying variables affecting
in-store and non-store apparel shopping.
A large amount of literature confirms that demographic factors influence consumers’
decision to shop apparel products (Dennis et al., 2009) both traditional physical store
(Kuruvilla and Joshi, 2010) and online store (Sahney et al., 2008). So, this study also
includes a framework to study the effects of the demographic characteristics on
consumers’ apparel shopping behavior.

1.2 Objectives

 To study the Consumer preferences towards online shopping as compared to

offline shopping for fashion apparel products.
 To analyze the factors affecting consumer preferences towards purchasing
fashion apparel online.
 To analyze differences in Consumer Behaviour towards purchasing apparel
products online among different demographics characteristics.

1.3 Literature Review

Kim et al (2003) examined the behavioral model of online consumer behavior for
shopping online for clothing and mainly apparel. Result showed positive relationship
among attitude and subjective norms involves that behavioral intention is not a
functions of independent set of attitudinal and normative variables but of a set of
interdependence between these variables. Finding f the study shows that attitude of
the consumer play major role for online consumer behavior for buying.
According to Michael R.Solomon, & Nancy J.Rabolt (2004), consumer behavior is the
study of the processes involved when individuals or groups, select, purchase, use or
dispose of products, services, ideas or experiences to satisfy needs and desires. Sproles
and Kendall (1986) developed a model to determine consumer‟s decision making
behavior with right consumer physiological orientation variables viz, brand
consciousness, perfectionism consciousness, impulsive and careless consumer,
confused by over choice consumer, novelty and fashion consciousness, habitual and
brand loyal consumer, choice consumer, recreational and hedonic shopping
consciousness and price and value consciousness.
Park J.H and Lenon, S.J. (2004) examined the research study showed about impact of
television on apparel shopping online and offline. Finding of the study shows that
there are positive relationship between television impact and apparel shopping while
buying.
According to Dolekoglu et al. (2008), examined the research in their study that the
there are following factors impact the consumer buying behavior are price,
advertising, quality of the product, sales promotion, brand image and celebrity
endorsement.
According to Jin and Kang (2010) studies purchase intention toward foreign brand
jeans using four antecedents viz. face saving, attitude, perceived behavior control and
subjective norms and found the results that face saving, attitude, perceived behavior
control have significance effect of purchase intention where as individual norms has
not significant impact toward purchase intention.
1.4 Research Methodology
Research Design