Factors impacting buying behavior of youngster in e-commerce and m-commerce

platform-special reference to Ghaziabad district

Synopsis of the Research Proposal

Submitted for the Registration into the

Ph. D. Program (Part-Time) in Management

Of

ICFAI University, Jharkhand

Ranchi

By

Sanjay Narayan Sinha

Under the Supervision of

Dr. GoutamTanty

Associate Professor,

ICFAI University, Ranchi

i
 Contents
Introduction:.........................................................................................................................................................................1
Relevance of the Topic.........................................................................................................................................................2
Objective of the study:.........................................................................................................................................................2
Scope of the study:...............................................................................................................................................................2
Literature Reviewed:............................................................................................................................................................3
Research work that was done on the topic/ Research Gap:..............................................................................................20
Research Problem Statement.............................................................................................................................................20
Hypotheses:........................................................................................................................................................................ 21
Methodology proposed:.....................................................................................................................................................21
Model for analysis of online buying behavior:...............................................................................................................22
Data proposed to be collected:..........................................................................................................................................23
Data proposed to be collected and Statistical Techniques for Analysis:...........................................................................24
Proposed time frames for completion of the major mile stones:.....................................................................................24
Bibliography........................................................................................................................................................................ 25

ii
Introduction:
E-commerce is widely used for purchasing goods online in India. The present study focuses on analysis of
Factors impacting buying behavior of youngster in e-commerce and m-commerce in Ghaziabad, Uttar Pradesh.
The Indian e-commerce industry is growing fast and it is expected to surpass USA by 2034 to become the
second largest e-commerce market in the world.

Internet offer many kind of convenience for online shopping. Consumers need not visit retail shops and can
browse shopping catalogues at home and compare price, discounts and delivery date. It saves time. E-
commerce companies offer good discount during sale period and it attracts youngsters for shopping at their
portals. Youngsters also await sale period offered by various online stores at their delivery location. To survive
in e-commerce business companies need to look at competitive price, quality of the product, payment options,
efficient delivery of products and robust customer service. Security and data privacy is extremely important in
the business. In order to get advantage in marketing of e-commerce industry it is important to know buying
behavior of consumer’s product category wise.
The e-commerce industry in India is directly impacting the micro, small & medium enterprises in India by
offering means of financing, training and technology and it has a favorable impact on other industries also.

Use of technology like digital payments, logistics, customer engagement analysis and digital advertisements will
increase the growth in the sector. The growth in e-commerce sector will increase revenues from export,
increase employment, increase tax collection and offer better products and services to customers.

“Online buying or shopping refers to the process of researching & purchasing products or services over Internet
(Varma and Agarwal, 2014)”.

“Online buying or shopping refers to the process of researching & purchasing products or services over Internet
(Varma and Agarwal, 2014)”.

Engel, Blackwell, and Kollat (EBK) developed a five-step model for consumer buying decision process:
Step 1-Problem Recognition: The consumer recognizes a problem that needs to be solved. Brand awareness is
important at this stage.

Step 2-Second step in decision making process is to gather available information about possible solutions. For
larger purchase decision the process will take longer. A consumer will want to thoroughly search regarding
features, pricing, ease of use, etc. of the product.

Step 3- Alternative Evaluation: Third step is evaluation process. Consumers have a list of criteria and the
solution must meet. What is a deal-make and what is a deal-breaker for the consumer?

Step 4- Purchase: Once the consumer has decided then there is no problem. Consumer has solution and it is
time to celebrate. Consumer would like to replicate the success with other buyers. For doing this consumer will
need robust reporting on how marketing actually affected the sale.

Step 5- Post-Purchase.: Once product is purchased, the new goal is to create long-term relationships between
consumer and company. Ensure that customers get the most value out of your products.
Next step is to optimize your marketing for every stage of the process, by building brand awareness, increase
your inbound marketing game, robust reports, personalizing your marketing efforts & continuing to market
current customers.

Analysis of buying behavior of e-commerce consumers will be done using a suitable buying behavior model. To
obtain the desired attributes for buying behavior of e-commerce portals, a suitable questionnaire will be used
and data will be analyzed using suitable tools. Following attributes will be analyzed:

 Online portal selection criteria for buying products

1
  Searching for products
 Criteria for selecting product using following attributes
 Product description/specification
 Competitive price
 Genuine product
 Item checkout process
 Payment method internet banking/CC/DC/COD/Wallet
 Help/Support from customer care
 Data security
 Product delivery
 Refund processing
 Analysis of Alternate product/ similar product
 Return/exchange of products
 Recommend to friends

Relevance of the Topic

In modern era Internet has transformed the traditional way of shopping with e-commerce shopping.
Plenty of options are available to customers round the clock at their finger tip. E-commerce market in India is
estimated at USD 27.34 billion. By year 2023 the e-commerce market is expected to reach USD 51.24 as per
report published on www.statista.com.

E-commerce companies offer discount for many products which may not be available with local retailers. So
customers find on line shopping convenient & cheaper.

The objective of the study is to assess consumer behavior related to online purchase of products on leading e-
commerce, m-commerce portals. The study will be done in e-commerce, m-commerce platform in Ghaziabad
district, Uttar Pradesh. E-commerce business is picking up in Ghaziabad and findings of consumer buying
behavior will have great impact on e-commerce. It will help e-commerce in working on the finding for improving
sales and customer retention.

Objective of the study:

1 To analyze buying behavior of consumers in the e-commerce, m-commerce platform in Ghaziabad
district.
2 To measure product category on portal and its impact on youngster buying behavior.
3 To analyze the price offer of online product and its impact on youngster buying.
4 To measure delivery quality of products and its impact on youngster buying behavior.

Scope of the study:

 Prepare set of questionnaire for e-commerce, m-commerce market place for customers
 Analysis of data related to buying behavior of consumers in the e-commerce, m-commerce industries
 The scope of the study is targeted to Ghaziabad district.
 Study will be done for lifestyle and electronics category of products only

2
Literature Reviewed:
Review of relevant literature provides valuable inputs to research design & methodology.

3
Sl. Literature Author/ Publish- Gist of Points gained Gap Linkage to
No Reviewed s ing Year own
. (Title of the research
paper, article,
etc. along with
the source, i.e.,
the name of the
Journal,
Magazine, Book,
etc. )

1 Factors Victor, 2018 The exploratory factor Use of M- Factors

Influencing Vijay analysis shows commerce influencin
Consumer and shopping experience, not g buying
Behavior and Fekete awareness about covered. behavior
Prospective Farkas dynamic pricing, Portal of college
Purchase Maria privacy, buying features students
Decisions in a strategy, reprisal e.g. covered.
Dynamic Pricing intentions, fair price Detailed
Environment— perceptions and self- products
An Exploratory protection intentions as specificatio
Factor Analysis factors which have a ns ,security
Approach. significant influence on and
consumer behavior & delivery
their prospective quality not
purchase decisions. covered.
[34]
2 A Study of Jukariya, 2018 The study identified Use of M- Factors
Factors Affecting T. and R. that Transaction commerce influencin
Online Buying Singhvi security, multiple not g buying
Behavior of payment options, covered. behavior
Students. security , Personal Portal of PG,
privacy Product price, features Ph.D.
product quality, speed e.g. students
of access and after Detailed covered.
sales service were few products
major factors that specificatio
affect students online ns and
buying behavior. delivery
[25] quality not
covered.
3 “How Online Sahu , 2017 Some youngster do not Brief study Youngster
Market Dr. shop on e-commerce on buying
Influencing the Mukesh portal because they youngster behavior
Youngster in and Alka could not physically see buying and its
Bhopal District of Tiwari the products. From the behavior relation
Madhya review it was is and its with
Pradesh”. observed that online relation gender,
International item review posting has with item cost,
Journal of critical effect on online gender, education
Emerging purchasing. E- item cost, al
Research in commerce retailers educational qualificati
Management need to give more qualificatio on and
&Technology attention to cost and n and internet
products category to internet literacy
draw in customers for literacy covered.
buying.[28] covered for
small group
in Bhopal
4 FACTORS SHARMA 2016 Four components are The study Factors
INFLUENCING , AJAY important in was done in influencin
YOUNGSTERS’ KUMAR influencing teenagers’ Vellore g
BEHAVIOR & behavior while doing district of youngster 4
TOWARDS SELVAM online shopping. These Tamil Nadu for online
ONLINE V factors are Marketing on a small shopping
SHOPPING IN Strategies, Product sample size. and
VELLORE diversity, Delivery buying
DISTRICT OF System and Browsing behavior
TAMILNADU, Speed. These four covered.
Research work that was done on the topic/ Research
Gap:
Some papers have been published on buying behavior of e-commerce and m-commerce. While developing
strategies for retaining online customers, management should develop high quality e-commerce system
including quality design, reliability, security, good delivery process and fair price for the products. A result of the
literature research suggest that the important factors are quality of the product, fair cost, data privacy and
reliability.

1. Not found any study to measure e-commerce and m-commerce combination on consumer buying
behavior
2. Impact of quality of product description and buying behavior of young online shoppers not covered
3. Impact of quality of delivery of products on buying behavior of young online shoppers not covered
4. Digital advertisement of offers, discount, sale and its impact on buying behavior of young online
shoppers not covered

This study will be covering a set of questionnaire related attributes of consumer on line buying behavior. Data
analysis will be done using a suitable model to show attribute that impact consumer buying behavior. The result
of this study will help e-commerce business in improving customer retention.

Research Problem Statement

Online shopping is picking up in Uttar Pradesh/Ghaziabad district. It is now preferred mode of shopping in the
area. This research is aimed at assessment of online buying behavior related attributes in e-commerce, m-
commerce platform by selecting suitable model/techniques.

Customer may not attempt to reorder if transaction is not satisfactory.

It is difficult to buy desired products during sale as expected discount/size/color/quality may not be available.
The factors affecting consumer buying behavior for youngster consumer will be analyzed.

Consumer often complains about data security, product out of stock during payment and issues in delivery of
the product.

Following factor related to buying behavior of young consumer will be analyzed:

 Portal selection criteria

 Product search & selection
 Incomplete product specification on e-commerce portal
 Variance between specifications of product ordered and received
 Late delivery of items
 Return/exchange of the product
 Product packaging
 Post order/Recommending to friends

Currently, the online market in the U.P. state is pegged at approximately INR 12,000 crore and it is estimated
that by 2020, the figure would rise fourfold. The state is expected to collect INR 600 crore in taxes through such
transactions during 2016-17.

In spite of some condition applied on brand item sale by government to help retailer/ small vendors online sale
is picking up fast.

5
The ecommerce companies should be familiar with problems faced by customers. The present study aims to
analyze product selection process, product order process, delivery process of products and customer service
support from customer perspective in Ghaziabad district.

Hypotheses:
H1: A positive relationship exists between e-commerce, m-commerce & buying behavior of young consumers.

H2: An offers on product on e-commerce portals has direct impact on youngster buying behavior

H3: A positive relationship exists between delivery packaging and youngster buying behavior

H4: A positive relationship exists between lifestyle product and youngster buying behavior

H5: A positive relationship exists between electronics product and youngster buying behavior

H5: A Positive relationship exists between use of m-commerce and consumer youngster buying behavior

Methodology proposed:
Questionnaire for customers, Survey and systematic analysis of data for evaluation of buying behavior attributes
of e-commerce. The study will be empirical based on the primary data to be collected from the youngster
customers of e-commerce. Primary data related buying behavior of e-commerce portals e.g. product selection,
product search, product description, quality of product ordering process and delivery will be collected.

Secondary data will be collected from Govt. websites, leading magazines and other websites publishing e-
commerce data.

6
Model for analysis of online buying behavior:

FFF Model [27]:Factors (F), Filtering elements (F), Filtered buying behavior (F)- The model will be customized for
the study and used for analyzing online buying behavior.

External Factors:
Demographics
Filtering
Technology & public
Elements
policy
Socio economic
Culture
Sub Culture
Marketing
Reference Groups
Security
Concerns

Buying Privacy Buying

Motives Concern Filtered
buying
Internal Factors: Motives
Learning
Attitude Trust and
Motivation trustworthi
Perception ness
Self image
Semiotics

Factors: Factors that motivate consumers. There are two kind of factors- external
and internal

External factors: These are beyond the control of the customers. External factors divided into five sectors:
Demographics, technology and public policy, socio-economics, culture, sub- culture, reference groups &
marketing.

7
Internal factors: internal factors are personal traits/behavior such as attitudes, perception, learning, motivation,
self-image, and semiotics.

Filtering Elements: Security, privacy and trust are filtering elements. Customers use these three attributes to
filter purchases.

Security: Customer filter purchase alternatives against security criteria.

Privacy: Customers filter purchase alternatives against data protection criteria

Trust and Trustworthiness: Trust is required in building any relationship with consumers. Customers trust big
brands like Amazon, Flipkart etc. but same level of trust is missing for smaller shop.

Data proposed to be collected:

Secondary data will be collected from journal, magazines and Government websites.
Primary data for the study will be collected through questionnaire and interviewing customers of the e-
commerce portals in Ghaziabad. Data will be collected from 400 customers approx. as per mentioned
methodology for collection of primary data.
For studying the buying behavior of e-commerce, m-commerce portals a suitable questionnaire will be prepared
to capture relevant attributes.

Dependent variables:

 Portal selection
 Product information Search and evaluation
 Consumer Purchase Behavior
 Post Purchase Behavior of consumer

Dependent variables:

 Use of internet
 Use of e-commerce, m-commerce

Moderating variables:

 Internet Speed
 Consumer purchase Capability
 E-commerce portals
 Use of Mobile application for shopping

A moderator is a variable that affects the strength of the relation between the criterion and predictor variable.
It can be qualitative (e.g. class, race, sex) or quantitative (e.g. level of reward, drug dosage).

Quantitative Data: deals with quantity or numbers. It refers to the data which computes the values & counts
and can be expressed in numerical figures. It is concerned with measurements like height, volume, weight,
length, size, speed, age etc.

Collection method of qualitative data are:

 Experiments
 Surveys
 Interviews
8
Qualitative Data: Concerned with observation of data in terms of smell, appearance, taste, feel, texture,
gender, nationality and so on. The methods of collecting qualitative data are:

 Observation
 Focus Group
 Archival Materials like newspapers

The questionnaire will capture data related to following quality related attributes of e-commerce portals:
 Product description
 Payment method used - Cash on delivery/CC/Internet banking/Cash wallet
 Customer data security
 Data privacy
 Advertisement of e-commerce portals in newspaper, TV, magazines
 Delivery of product to customer
 Variance in product delivered and product details on portal
 Delivery of products
 Exchange of product
 Return of product
 Recommend e-commerce portals to friends
 Use of mobile application for shopping

Data proposed to be collected and Statistical

Techniques for Analysis:
About 380-400 survey questionnaire data would be collected from e-commerce customers in Ghaziabad district.
Independent T-test will be used to find differences between mean of two groups.
Regression and ANOVA will be used for analysis using SPSS tool.

Relevance of Projected Findings

The findings will help us to understand what factors of e-commerce business influence customer buying
behavior based on customer earnings/gender/jobs/age/marital status/educational background/social and
economic status. Questionnaire will be prepared for getting attributes that affect buying behavior of online
consumers. The finding will be helpful for e-commerce, m-commerce business in increasing customer trust and
retention. This will increase customer loyalty and help in growing e-commerce business.

Proposed time frames for completion of the major mile

stones:
Sl. No. Activities Timeframe
1 Literature review for knowledge on the topic of July 2018 to November 2018
research &research methodology
2 Selection of Topic November 2018
3 Prepare Synopsis – Draft version December 2018 to Jan 2019
4 Finalization of Synopsis Feb 2019 to March 2019
5 Preparing for Defense, submit Synopsis to the April 2019
University
6 Literature review for further clarification of concepts April to July 2019
7 Developing Methodology Aug. 2019
8 Prepare design of Questionnaire Sept-2019
9 Data Collection Oct-2019 to Feb-2020
10 Data analysis Mar-2020 to June-2020
9
11 Prepare Thesis- First draft Jul-2020 to Oct-2020
12 Prepare Thesis- Second draft Nov-2020 to Feb-2021
13 Prepare final draft of thesis (based on feedback from Mar-2021 to May-2021
supervisor)
14 Submit Thesis June-2021

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