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Consumer’s Online Shopping Behavior with Reference to The Flipkart

Article  in  SSRN Electronic Journal · January 2019

DOI: 10.2139/ssrn.3323837

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

Consumer’s Online Shopping Behavior with Reference to The

Flipkart
Anurag Pandeya, Jitesh S. Parmarb
aPh.D. Scholar, UKA Tarsadia University, Bardoli, Surat, Gujarat
bAssociate Professor, Shrimad Rajchandra Institute of Management and Computer Application,

Surat, Gujarat.

ARTICLEINFO
Keywords:
Consumer behaviour,
online shopping,
Internet shopping,
Electronic commerce
ABSTRACT
A descriptive type of study using judgmental sampling
for selecting the samples from online shopping users of
Kanpur city. The data has been collected with the help
of questionnaire & schedule. The descriptive analysis
and nonparametric test has been used for hypothesis
testing. The study results suggest that how consumers
come to know about Flipkart? Which features
consumer do not like about Flipkart? Which features
consumer like about Flipkart? What are the products
consumer buy from Flipkart? Which mode of payment
consumers prefer to pay? And are they satisfy with the
product quality & services provided by Flipkart?

Introduction
The online shopping in India has changed the way of shopping goods and services. The
consumer who wanted to purchase products after touching and feeling the product, have
started shopping goods by seeing its picture on website. It is just because online
shopping has been creating trust and gaining acceptance in India. The Flipkart which
was started in October 2007 has done a lot in making trust about online shopping. The
Flipkart is a leading online shopping website which offers 80 million products across
80+ categories, having around 100 million registered users, 100 thousand sellers, 21
state of the art warehouse, 10 million daily page visits, and 8 million shipment per
month (Flipkart website). In 2016 it has become the first Indian online shopping App to
cross 50 million users. It offers certain product categories, such as books & stationary,
music CDs & movies, home & furniture, electrical and electronic goods, sports
equipment, life style & fashion, toys and automotive. Flipkart provides 24X7 customer
support, it also provides products at minimum possible price, and consumer gets offers
and discounts on purchasing products online. It provides 30 days replacement policy for
faulty transactions. Many researcher have conducted investigations for understanding
consumer’s online shopping behavior, what drive consumer’s to buy online? (Toñita
Perea y Monsuwé Benedict G.C. Dellaert Ko de Ruyter, 2004), What Makes Consumers
Buy from Internet? (Limayem, Khalifa, and Frini, 2000), Barriers to Online Shopping in
Switzerland (Rudolph, Rosenbloom, and Wagner, 2004).

Literature Review

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

According to Mohammad Hossein Moshref Javadi1 & Hossein Rezaei Dolatabadi (2012)
financial risks and non-delivery risk negatively affected attitude toward online shopping
and domain specific innovativeness, subjective norms, and attitude toward online
shopping positively affect online shopping behavior.
According to Said S. Al-Gahtani & Malcolm King (1999) relative advantage of the system
contributed most to attitudes and satisfaction. Compatibility (of the system to the task
performed) contributed most to usage and is the most important antecedent of the belief
variables, including relative advantage. They also advised that the usage-satisfaction
relationship is unclear and confusing and there is a strong positive correlation between
satisfaction and usage. They advocated that attitude is `more than’ a substitute for
satisfaction and that satisfaction should be used as a complement to usage when
evaluating end-users’ acceptance of computer technologies.
According to Toñita Perea y Monsuwé Benedict G.C. Dellaert Ko de Ruyter, (2004)
attitudes toward online shopping and intention to shop online are not only affected by
ease of use, usefulness, and enjoyment, but also by exogenous factors like consumer
traits, situational factors, product characteristics, previous online shopping experiences,
and trust in online shopping.
According to A.Lakshmanan (2016) product preferences, problems faced by the
customers, more number of products with discount, risk perception and after sales
services are the factors which affects customer satisfaction towards online shopping.
According to Evanschitzky, Iyer, Hesse, Ahlert (2004) financial security of the
transactions convenience and site design are the most important factors affecting e-
satisfaction.
According to Szymanski & Hise (2000) consumer perceptions of online convenience,
merchandising (product offerings and product information), site design, and financial
security are dominating factors affecting e-satisfaction assessments.
According to Yooncheong Cho, Fjermestad and Hiltz (2003) perceived price,
information search effort, and ego involvement on the degree of dissatisfaction are
significantly affected by product category. They also investigated that the effect of the
degree of dissatisfaction on propensity to complain is significantly different based on
product category on the Web.
According to Sirrka L., Peter A. (1996) Product perceptions, shopping experience,
customer service, and perceived consumer risk are the factors affecting electronic
shopping on the World Wide Web.
According to Sang Yong Kim & Young Jun Lim (2001)) the factors of entertainment,
convenience, reliability, and information quality and speed plays important role in
customer satisfaction while shopping online.
According to Hausman, Siekpe (2008) Human factor (no. of visitors to site),
Entertainment, informativeness, irritation, usefulness, attitude towards website, revisit
intention are the important aspect of a good website and it affects consumer’s online
shopping buying behavior. According to Bai, Law, Wen (2008) website quality has a
direct and positive impact on customer satisfaction, and that customer satisfaction has a
direct and positive impact on purchase intentions.
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Consumer’s Online Shopping Behavior with Reference to The Flipkart

According to Hasanov Jasur, Khalid Haliyana (2015) website quality is not the only
determining factors that could increase consumer purchasing intention. Other qualities
such as good customer service, efficient product distribution and logistics and also
positive reviews from customers also play an important role.
According to Nitish Singh Georg Fassott Mike C.H. Chao Jonas A. Hoffmann, (2006)
attitude toward using the web site is shown to have a strong impact on their intent to
purchase from these international websites.
According to Forsythe Sandra M., Shi Bo (2003) Internet shoppers perceive several
risks in Internet shopping, these perceived risks may not significantly influence Internet
patronage behaviors among current Internet shoppers in an extensive and systematic
way.
According to Constanza Bianchi Lynda Andrews, (2012) perceived risk online had an
inverse relationship with consumers’ attitude and that attitude has a positive influence
on intentions to continue purchasing.
According to Juniwati (2014) perceived usefulness, ease of use and risk have significant
influence on attitude toward online shopping. Where perceived usefulness and ease of
use have not significant influence toward intention to shop online but perceived risk and
attitude have significant influence toward intention to shop online.
According to Hernandez Blanca, Jimenez Julio, Martin M. Jose (2008) self-efficacy and
usefulness are important perceptions in explaining the behaviour of experienced
consumers, while ease of use does not have a significant influence.
According to Azzam Al, Mahmoud Abdel Fattah (2014) perceived ease of use; perceived
behavioral control, attitude, and perceived usefulness are essential antecedents in
determining online consumer behavior and there is no significant relationships between
trust and online purchasing behavior.

Research Methodology
Respondents were selected from Kanpur city because it had convenience for the
researcher. The sample selected had at least one time online shopping experience. The
size of the sample selected was 100. A combination of Judgmental and snowball
sampling were used because of the list of the online shoppers was not available. The first
set of respondent was selected on the basis of judgement. Subsequently additional units
were obtained on the basis of information given by initial sample units and then further
referrals were taken from those selected in the sample. Total 150 questionnaires were
distributed out of that 115 was received and 15 questionnaire were found incomplete. So
only 100 questionnaire were selected finally for further analysis of data. The structured
questionnaire including dichotomous, multiple choice, and semantic differential
questions. All the differential questions are considered to be based on interval scale. The
arithmetic mean, standard deviation, reliability test based on Cronbach’s Alpha value,
factorial analysis were the statistical measures and test used for data analysis.

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

Data Analysis
Frequency distribution of demographic variables
Table 1 was drawn to understand the socioeconomic background of the respondents and
it was found that out of the total sample (n=100) 69% consisted of male and 31% of
female. Further we have divided the age group in four categories and we found that
more than half (65%) of respondents were below 20 years of age, while (22%) belonged
to the age group of 20 to 25, (11%) respondents belonged to the age group of 25 to 30
years of age. And (2%) respondents belonged to the age group of 30 to 35 years of age
We have categorized marital status in two categories i.e. un-married and married and it
was observed that more than half (81%) of respondents were un-married and (19%) of
them were married.
We have categorized family monthly income in four categories, It was observed around
(58%) of respondents were having income group ₹ 20000 - ₹ 30000, (22%) were in
income group ₹ 30000 - ₹ 40000, (12%) were in income group ₹ 40000 - ₹ 50000 and
(8%) were in income group ₹ 50000 - ₹ 60000
We have categorized occupation in four categories i.e. Service, self-service and student,
it was observed that more than half (78%) of respondents were students, (19%) of
respondents were doing service and (3%) of them were having self-service. We have also
categorized the frequency of shopping online of respondents in same four categories i.e.
daily, weekly, monthly and annually. It was observed that (36%) of respondents were
having monthly, (46%) of respondents were having weekly, (8%) of them were having
annually and (10%) of them were having daily online shopping.
Measures: Reliability and validity assessment
The Cronbach's Alpha statistic was used to check reliability of the scale developed for
evaluations statements used in the questionnaire. The alpha coefficient for the 24
statement of questionnaire is .774 suggesting that the items have relatively consistency
see table-2.
Exploratory Factor Analysis
KMO and Bartlett test of sphericity sign posted that the data was suitable for
exploratory factor analysis. As the KMO measures the sampling adequacy that should be
greater than 0.5 and it was 0.805 indicating that the sample was adequate to consider
the data suitable for factor analysis.

Table1: Demographic Profile of respondents

Respondent Frequency Percent
Male 69 69.0
Gender
Female 31 31.0
15 - 20 yrs 65 65.0
Age 20 - 25 yrs 22 22.0
25 - 30 yrs 11 11.0

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

30 - 45 yrs 2 2.0
Techer 11 11.0
Service 8 8.0
Occupation
Self service 3 3.0
Student 78 78.0
20000 - 30000 58 58.0
30000 - 40000 22 22.0
Monthly Income
40000 - 50000 12 12.0
50000 - 60000 8 8.0
Married 19 19.0
Marital Status
Unmarried 81 81.0
Daily 10 10
Weekly 46 46
Frequency of Shopping Monthly 36 36
Yearly 8 8
Total 100 100
Table-2: Reliability Statistics

Cronbach's Alpha Based

Cronbach's Alpha on Standardized Items N of Items
.781 .774 24
Table 3: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .805
Bartlett's Test of Approx. Chi-Square 423.750
Sphericity df 55
Sig. .000

From the table 3, it can be observed that Bartlett's test of sphericity was 423.750
significant at 0.000 level of significance. It indicates that the correlation matrix was not
an identity matrix. The above facts show that the data collected on different attributes of
online shopping from respondents were suitable for factor analysis.
The raw scores of 11 items were subjected to Principal Component Analysis (PCA) to
identify the underlying factors that affect the consumer’s online shopping buying
behaviour. After the analysis, it was found that there were seven factors, with 57.189% of
cumulative variance explained through the exploratory factor analysis. Following are the
details of factors identified through EFA:

Table 4: Rotated Component Matrixa

Component
1 2
Eigen % of
Communalities Percieved Percieved
Value Variance
Risk Usefulness

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

Rate product tracking

process provided by .374 .870
Flipkart
Rate the delivery time
.470 .861
of Flipkart
Rate the easy return
.740 .843
Policy of Flipkart.
Rate the Simplicity of
purchase process of 3.523 32.031 .758 .826
Flipkart
Do you think
shopping on Flipkart .741 .572
is risky
Do you think hidden
charges cause
.452
confusion while
purchasing?
Do you think
shopping on Flipkart 25.158 .685 .795
saves your time?
I will prefer Flipkart
shopping only if
Flipkart prices are .334 .769
lower than compare
to other site prices.
Are you fully satisfied
.631 .710
with Flipkart? 2.767
Do you think Flipkart
provide a detailed
description & .593 .684
information of
product?

I am satisfied with the

.513 .652
packaging of Flipkart

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.

Descriptive Analysis
How the consumers come to know about Flipkart?

Frequenc
y Percent
Valid Word of
15 15.0
mouth

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

Internet 70 70.0
Print Media 11 11.0
Others 4 4.0
Total 100 100.0

According to survey, 15% respondents come to know about Flipkart through word of
Mouth, 70% through Internet, 11% through Print Media and 4% through other means.

Which feature consumer like about Flipkart?

Features Liked Frequency Percent

Valid Discount 25 25.0
Delivery Time 55 55.0
Customer
18 18.0
service
Others 2 2.0
Total 100 100.0

According to survey, 25% respondents like discounts offered by Flipkart, 55% like
Delivery Time, 18% like customer Service, and 2% like other features.
Which feature consumers do not like about Flipkart?
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Consumer’s Online Shopping Behavior with Reference to The Flipkart

Frequenc
y Percent
Valid Delay in delivery 22 22.0
Packaging 27 27.0
delivery charge under
40 40.0
500
No Complaints 11 11.0
Total 100 100.0

Which mode of payment do you prefer to pay?

Cumulative
Frequency Percent Valid Percent Percent
Valid Cash on delivery 56 56.0 56.0 56.0
Card payment 36 36.0 36.0 92.0
Internet Banking 8 8.0 8.0 100.0
Total 100 100.0 100.0

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

According to survey 27 respondents make payment through Credit cards, 10 Debit cards,
8 Online Bank transfer and 55 payment Cash on delivery.
What do you prefer buying from Flipkart?
Cumulative
Frequency Percent Valid Percent Percent
Valid Electronics 39 39.0 39.0 39.0
Clothes & Shoes 46 46.0 46.0 85.0
Beauti &
11 11.0 11.0 96.0
Healthcare
Others 4 4.0 4.0 100.0
Total 100 100.0 100.0

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

According to survey 80% respondent have purchaged ticket while 8% preferred

clotheing. Other like Books 10%, Video games 25%, electronic equipment18%,
Computer& software12% and music 20%.
Are you fully satisfied with flipkart?
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Agree 14 14.0 14.0 14.0
Agree 55 55.0 55.0 69.0
Neutral 22 22.0 22.0 91.0
Disagree 5 5.0 5.0 96.0
Strongly Disagree 4 4.0 4.0 100.0
Total 100 100.0 100.0

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Consumer’s Online Shopping Behavior with Reference to The Flipkart

Discussion and Conclusions

In this study we found that there are two factors that affect consumer’s online shopping
buying behaviour. These factors are perceived ease of use and perceived risk.
Limitation and future research
A limitation of this study lies with the sample size and in the age distribution of the
sample used in this study. Sample size 100 is small and approximately 87 percent of
sample was in the age group of less than 25 years, thus, the results may not be
generalized for consumers over age of 30- 35. The geographical area for this study was
Kanpur region only.

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