Customer Confusion in Online

Shopping
Adhiraj | Ashesh | Bhairavi | Inderjit | Prateek | Rakesh | Vishrut
Group - 2

AGENDA

E-Commerce Industry on an upturn

E-commerce Modes and Enablers
Dimensions and Consequences of Customer
Confusion
Post purchase satisfaction
Research objectives
Research Problem & Variables
Research method, Sample Design and Data Collectio

E-commerce-Industry on an upturn

E-commerce Modes and Enablers

Factors for Consumer Confusion

Conflictin
g reviews

Conflicting
reviews by
past owners
of products

Large
price
variation
s

Large price
variations
across
various
websites

Frequent
price
fluctuatio
ns

Frequent
fluctuatio
ns occur
in price of
the
product

Large
number
of
alternativ
es

Large
number of
alternative
products
available

Features
varying
across
websites

Reported
features
different for
the same
product
across
websites

Shipping
charges
varying
across
websites

Different
shipping
charges

Nonuniform
images

Images of
the same
product
varying
across
websites

Differing
return
policies
across
websites

Return
policies

Post purchase satisfaction

Quality

Descripti
on

Post Purchase
satisfaction is governed
by the Quality of the
product arrived

Customer is not
satisfied if the product
arrived doesnt meet
the description in the
website

After
sales

Customer is not
satisfied if the
website doesnt
provide decent after
sales service

Price

Customer is not
satisfied if he does
not like the price
he paid for the
product

Research Objectives and Question

To understand the
factors that lead
to customer
abandoning the
purchase

To understand if
the above factors
affect the postpurchase
satisfaction

What is the
impact of
customer
confusion on the
purchase decision

Research Problem & Variables

Research Problem:
Lack of sufficient data that deeply analyses the factors
contributing to consumer confusion in online buying and
the impact of consumer confusion on final purchase .

Variables:
Independent: Conflicting reviews, Price variations across
websites, Price fluctuation on a website, Large Number
of alternatives, Different features/Specifications,
Different Shipping Charges, Non-uniform images,
Conflicting return terms and conditions
Dependent 1: Purchase Decision
Dependent 2: Post Purchase satisfaction

Research method and Sample Design

Speedy
and cost
effective

Represe
ntative
sample

Flexible
questioni
ng

Why we
used
Internet
survey
through
Questionnai
re

Sample:
Visually
appealin
g and
Interacti
ve

Accurat
e real
time
data
capture

Age: 16-45 years

Profession: Students,
Corporate Employees, Self
Employed, Home makers
All are e-commerce users

Questionnaire

Shopping in past 3 months

Shopping frequency
4% 1%

14%
13%

82%
86%

Yes

1-2 times per month

6-9 times per month

No

Time taken to buy

2%
19% 8%
28%

22%

3-5 times per month

>10 times per month

Buying frequency
<5 min
5-10 min
10-20 min
20-30 min
30-60 min
>60 min

20%
Never

Rarely

Sometimes

Very often

Always

Research Hypothesis-Purchase
Decision

 H0 : Conflicting reviews do not impact post-purchase satisfaction

negatively
H
reviews
impact
post-purchase
negatively
H1:: Conflicting
Price variations
across
websites
does not satisfaction
impact post-purchase
0

satisfaction negatively
H1: Price variations across websites impacts post-purchase satisfaction
H
0 : Price fluctuation on a website does not impact post-purchase
negatively
satisfaction negatively
H1: Price fluctuation on a website does not impact post-purchase
H
of alternatives do not impact the post-purchase
0 : Large Number
satisfaction
negatively
satisfaction negatively
H1: Large Number of alternatives impact the post-purchase satisfaction
H
0 : Different features/Specifications do not impact post-purchase
negatively
satisfaction negatively
H1: Different features/Specificationsimpact post-purchase satisfaction
H
0 : Different Shipping Charges does not impact post-purchase
negatively
satisfaction negatively
H1: Different Shipping Charges impact post-purchase satisfaction
negatively
H0 : Non-uniform images do not impact post-purchase satisfaction
negatively
H1: Non-uniform images impact post-purchase satisfaction negatively
H0 : Non-uniform images do not impact post-purchase satisfaction
negatively
H1: Non-uniform images impact post-purchase satisfaction negatively

Hypothesis Testing
Coefficie

nts
Intercept
0.70308
0.18854
Conflicting Reviews
9
Price Variation across
0.24335
websites
8
0.18940
Price fluctuation on a website
7
0.08945
Large variety
8
Conflicting Terms and
0.07475
Conditions
5
0.12712
Different shipping charges
9
0.07373
Non-uniform images
8
Different
0.22579

Standar
d Error
0.48111
6
0.08234
7
0.08255
6
0.07339
5
0.06714
6
0.07459
5
0.07219
4
0.06913
4
0.06929

Lower
95%

Upper
t Stat P-value
95%
- 0.14832
0.25623
1.46136
8 -1.6624
4
2.28968 0.02501 0.02435 0.35274
8
5
4
4
2.94781 0.00432 0.07874
3
8
7 0.40797
2.58064
0.04306 0.33575
6 0.01193
1
4
0.18702
- 0.22334
1.33228
9 0.04443
4
1.00214 0.31967
- 0.22349
1
9 0.07398
4
1.76094 0.08255
- 0.27107
6
3 0.01682
9
1.06659 0.28976
- 0.21158
9
6 0.06411
8
3.25866 0.00171 0.08763 0.36396

Lower
95.0%

Upper
95.0%
0.25623
-1.6624
4
0.02435 0.35274
4
4
0.07874
7 0.40797
0.04306 0.33575
1
4
- 0.22334
0.04443
4
- 0.22349
0.07398
4
- 0.27107
0.01682
9
- 0.21158
0.06411
8
0.08763 0.36396

 H0 : Conflicting reviews do not impact post-purchase satisfaction

negatively
H
reviews
impact
post-purchase
negatively
H1:: Conflicting
Price variations
across
websites
does not satisfaction
impact post-purchase
0

satisfaction negatively
H1: Price variations across websites impacts post-purchase satisfaction
H
0 : Price fluctuation on a website does not impact post-purchase
negatively
satisfaction negatively
H1: Price fluctuation on a website impacts post-purchase satisfaction
H
0: Large Number of alternatives do not impact the post-purchase
negatively
satisfaction negatively
H1: Large Number of alternatives impact the post-purchase satisfaction
H
0: Different features/Specifications do not impact post-purchase
negatively
satisfaction negatively
H1: Different features/Specificationsimpact post-purchase satisfaction
H
0: Different Shipping Charges does not impact post-purchase
negatively
satisfaction negatively
H1: Different Shipping Charges impact post-purchase satisfaction
negatively
H0: Non-uniform images do not impact post-purchase satisfaction
negatively
H
images impact post-purchase
satisfaction
negatively
H1:: Non-uniform
Different features/Specifications
do not impact
post-purchase
0

satisfaction negatively
H1: Different features/Specificationsimpact post-purchase satisfaction
negatively


Intercept
Conflicting reviews
Price variation across
websites
Price fluctuation on a
website
Different
features/specifications

Coeffici Standar
ents d Error t Stat
0.0605
54
0.2162
03
0.3251
86
0.1853
77
0.2470
26

0.3608
89
0.0817
32
0.0745
19
0.0741
35
0.0680
39

0.1677
92
2.6452
64
4.3637
88
2.5005
43
3.6306
78

P-value
0.8671988
7
0.0099386
52
4.02641E05
0.0145837
32
0.0005140
87

Lower
95%
0.6583
7
0.0533
84
0.1767
36
0.0376
93
0.1114
87

Upper
95%

Lower
95.0%

0.77948
1
0.37902
2
0.47363
6
0.33306
1
0.38256
6

0.65837
0.05338
4
0.17673
6
0.03769
3
0.11148
7

Upper
95.0%
0.779481
0.379022
0.473636
0.333061
0.382566

Research Hypothesis-Post Purchase

Satisfaction

 H0 : Conflicting reviews do not impact the post-purchase satisfaction

negatively
H
reviews
impact
the post-purchase
satisfaction
negatively
H1:: Conflicting
Price variations
across
websites
does not impact
post-purchase
0

satisfaction negatively
H1: Price variations across websites impacts post-purchase satisfaction
H
0 : Price fluctuation on a website does not the impact post-purchase
negatively
satisfaction negatively
H1: Price fluctuation on a website impacts the post-purchase satisfaction
H
0 : Large Number of alternatives do not impact the post-purchase satisfaction
negatively
negatively
H1: Large Number of alternatives impact the post-purchase satisfaction
H
0 : Different features/Specifications do not impact the post-purchase
negatively
satisfaction negatively
H1: Different features/Specifications impact the post-purchase satisfaction
H
0 : Different Shipping Charges does not impact the post-purchase satisfaction
negatively
negatively
H1: Different Shipping Charges impact the post-purchase satisfaction
negatively
H0 : Non-uniform images do not impact the post-purchase satisfaction
negatively
H1: Non-uniform images impact the post-purchase satisfaction negatively
H0 : Non-uniform images do not impact the post-purchase satisfaction
negatively
H1: Non-uniform images impact the post-purchase satisfaction negatively

Hypothesis Testing

Intercept
Conflicting Reviews
Price Variation across
websites
Price fluctuation on a
website
Larrge variety
Conflicting Terms and
Conditions
Different shipping charges
Non-uniform images
Different

Coeffici Standar
ents
d Error t Stat
4.41536 0.80045 5.51609
7
1
6
0.13700
0.08163
4 0.59582
- 0.13735
0.39236
1 2.85665
- 0.12211
0.00665
1 0.05447
- 0.11171
0.01816
4 0.16257
0.05762 0.12410 0.46432
6
7
2
0.04912 0.12011 0.40902
9
2
5
- 0.11502
0.12034
1 1.04628
0.19535 0.11528 1.69453

Lower Upper Lower Upper

P-value
95%
95%
95.0% 95.0%
5.30222E- 2.81931 6.01142 2.81931 6.01142
07
2
1
2
1
0.5531899
- 0.35480
- 0.35480
94 0.19155
8 0.19155
8
0.0056119
5 0.66623 0.11849 0.66623 0.11849
0.9567175
- 0.23683
- 0.23683
85 0.25013
1 0.25013
1
0.8713194
- 0.20459
- 0.20459
69 0.24091
1 0.24091
1
0.6438377
- 0.30508
- 0.30508
01 0.18984
8 0.18984
8
0.6837525
- 0.28862
- 0.28862
76 0.19037
4 0.19037
4
0.2989803
- 0.10900
- 0.10900
77 0.34969
1 0.34969
1
0.0945462
- 0.42522
- 0.42522

 H0 : Conflicting reviews do not impact the post-purchase satisfaction negatively

H1: Conflicting reviews impact the post-purchase satisfaction negatively
H0 : Price variations across websites do not impact post-purchase satisfaction
negatively
H1: Price variations across websites impacts post-purchase satisfaction negatively
H0 : Price fluctuation on a website does not the impact post-purchase satisfaction
negatively
H1: Price fluctuation on a website impacts the post-purchase satisfaction negatively
H0 : Large Number of alternatives do not impact the post-purchase satisfaction
negatively
H
Number
of alternatives impact
theimpact
post-purchase
satisfaction
negatively
H1:: Large
Different
features/Specifications
do not
the post-purchase
satisfaction
0

negatively
H1: Different features/Specifications impact the post-purchase satisfaction
negatively
H0 : Different Shipping Charges does not impact the post-purchase satisfaction
negatively
H1: Different Shipping Charges impact the post-purchase satisfaction negatively
H0 : Non-uniform images do not impact the post-purchase satisfaction negatively
H1: Non-uniform images impact the post-purchase satisfaction negatively

H0 : Non-uniform images do not impact the post-purchase satisfaction negatively

H1: Non-uniform images impact the post-purchase satisfaction negatively

Conclusion

References
http://www.ey.com/Publication/vwLUAssets/Rebirth_of_e-Comm
erce_in_India/$FILE/EY_RE-BIRTH_OF_ECOMMERCE.pdf
http://www.pwc.in/en_IN/in/assets/pdfs/publications/2015/ecomm
erce-in-india-accelerating-growth.pdf
Dimensions and consequences of customer e-confusion in
online buying behaviour-Kurt Matzlera Sonja Bidmona Rita
Faullanta Marliese Fladnitzera Martin Waigunyb
SPOILED FOR CHOICE: CONSUMER CONFUSION IN INTERNETBASED MASS CUSTOMIZATION-Kurt Matzler*, Martin Waiguny**,
Johann Fller***
Diagnosing Consumer Confusion and Sub-Optimal Shopping
Effort: Theory and Mortgage-Market Evidence By Susan E.
Woodward and Robert E. Hall