Consumer Attitude Towards Online Retail Shopping in India

Consumer Attitude Towards Online Retail
Shopping in the Indian Context

Sangeeta Sahney *,
Archana Shrivastava** and Rajani Bhimalingam***
The objective here is to look into the various aspects of online shopping in modern day
environment and to identify those factors that affect the development of attitudes towards
online shopping. The study also aims at identifying customer requirements with respect
to online shopping, giving certain conclusions to ensure the success of an online shopping
site. This study is descriptive, diagnostic and exploratory in nature, and is aimed at
identifying critical parameters in online retail shopping, tapping consumers’ feelings and
attitudes towards online shopping, and establishing attitudinal differences across
demographics. It reaches a logical conclusion through the identification of key design
areas. It helps one to understand what consumers expect from an online retailing store
for their satisfaction and delight. By examining the various dimensions uncovered in this
study, online retailers can develop a better understanding of consumer needs. Marketing
academicians may use this study for assessing consumer attitudes towards online retail
shopping in the Indian context, thereby, identifying such attributes that would lead to
positive attitudes towards online retail shopping. Online retailers may also use the findings
of this study as a resource, while constructing, managing, and evaluating their marketing
strategies in the Indian context.
Introduction
The retail infrastructure has witnessed a transformation across the world with the rapid
growth of e-commerce, especially in the past two decades. India, swiftly emerging as an
important economic country, with its economy growing at more than 9% annually
and online retail services rising rapidly in recent years, is imperative to understand the
factors that influence Indian consumers regarding their use of the internet for retail buying.
According to Internet And Mobile Association of India (IAMAI) and Indian Market Research
Bureau (IMRB), the size of e-commerce industry will touch the figure of Rs. 9,210 cr by
the end of 2008. Culture plays a role in forming the attitudes of consumers towards online
buying. Therefore, cultural conventions and regulations must be studied to tap the target
consumers of a country. India has a collectivist and high context culture with ever
increasing internet users, recorded to be 21 million in March 2006 (Cube, 2006).
* Assistant Professor, Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur
721302, India. E-mail: sangeetasahney@rediffmail.com
** Lecturer, NYSS Institute of Management and Research, Nagpur 440022, India. E-mail: archanashri@yahoo.com
*** System Analyst, Medibank Private, Australia. E-mail: Rajani_Bhimalingam@medibank.com.au
© 2008 The Icfai University Press. All

34 TheRights Reserved,Journal of Consumer Behavior, Vol. III, No. 4, 2008
Icfai University
Business is becoming online and internet is being used as a channel of information
and commerce. Infact, business transactions via electronic means have become an
indispensable part of the repertoire of services that a marketer has to offer, if long-term
survival and success is what he aims at. The application of technology-based online retail
services has grown rapidly in the recent years, but an understanding to attract, retain and
satisfy customers in such contexts remains limited. However, in establishing an online
presence, a marketer often encounters the difficulty of understanding and managing the
dynamics of consumer behavior, and this necessitates a study of behavioral issues in
online retail shopping. Understanding and managing the dynamics of customer behavior
in the rapidly emerging electronic retail environment becomes crucial and this lays the
need for an analysis in terms of behavioral issues.
Online marketing is an area where, research pertaining to behavioral issues is lacking

and fragmented. Although the number of individuals buying online products and services
continues to increase in India, the success of some e-retailers and the failure of some,
emphasizes the need for analysis in terms of behavioral issues, apart from issues related
to quality and performance. Further, what leads a buyer to shop online is a matter that
has evoked a lot of interest although the findings from research are loose, fragmented and
disintegrated. A framework is needed to structure the complex system of effects of the
demographic, psychographic and situational factors that impact a consumer’s decision
to shop online, and develop an in-depth understanding of consumers’ attitudes and
intentions to shop online.
The objective here is to identify such factors that lead to the development of positive
attitudes of Indian consumers toward online shopping. The study begins with a conceptual
background and is followed by an empirical study wherein, the factors that affect the
development of attitudes toward online shopping are measured and hypothesis tested
through correlation and regression analysis. While marketing academicians may use the
study for assessing consumer attitudes towards online retail shopping in the Indian context,
and thereby, identify such attributes that would lead to positive attitudes towards online
retail shopping, online retailers may use the findings as a resource while constructing,
managing, and evaluating their marketing strategies.
Conceptual Framework
To understand the attitudes of Indians towards online buying, it is imperative to understand
online retailing in general, and also in the Indian context, to identify the drivers behind and
the challenges in the development of positive attitude towards online buying.
Online Retailing
The internet represents a huge marketing opportunity, as the use of technology as a
means of conducting businesses continues to rise. The number of people accessing the
internet and entering into commercial transactions has been on the rise, and online
Consumer Attitude Towards Online Retail Shopping in the Indian Context 35

shopping has been a growing phenomenon all over the world (Joines et al., 2003; and
Jayawardhena, 2004). Such transactions have been witnessed for both organizational as
well as personal buying and the trend will continue to rise through online retailing.
Bakos (1991), describes an e-market as “... an interorganisational information system

that allows the participating buyers and sellers to exchange information about prices and
product offerings”. Liu and Arnett (2000), define it as, “a way of conducting business by
companies and customers performing electronic transactions through computer networks”.
Meuter et al. (2000) have defined e-retailing in terms of the internet market as, “a virtual
realm where products and services exist as digital information and can be delivered through
information-based channels”. One may define online-retailing as use of an electronic media
through which the customer and the marketer may enter into a transaction for sale and
purchase, so as to benefit both the parties in the long run.
Businesses are conducted both through traditional means as well as online.

Technological advancements have led to the growth in technology-based self-service and
thereby impacted the way business is transacted (Dabholkar, 1994; and Moncrief and
Cravens, 1999). This has provided opportunities to fulfill several consumer needs such as
detailed product information of different brands, good bargains, saving of time and effort and
convenience of shopping at home more effectively and efficiently than conventional shopping,
especially in the highly competitive environment (Chen and Leteney, 2000).
Online Retail in India

Online retail in India is directly related to the overall environment that has been conducive
to internet usage, viz., an increasing young population of computer literates, the availability
of the internet, active internet users and the utilitarian and hedonic dimensions associated
with internet usage. There are a number of online retailers such as Fabmart.co, First and
second.com, Sharekhan.com, Makemytrip.com, ICICI who have offered products and
services in India but have not been able to tap the mass segment. The reasons, being
failure in understanding the demographics of Indian consumers, the lack of proper
connectivity and interactivity of the internet, uncertainties about the quality of product or
services, and also risky payment modes (IAMAI and IMRB, 2007). Most of the online
retailers have been generating maximum revenues from advertisements and not from
customers.
There has been a rapid 100% growth of computer literates from 2004 to 2006. In 2006,
there were 21 million active internet users, 59 million PC literates and 32 million passive
internet users in India (Cube, 2006). According to the study done by Syndicated Research
of e-technology group @IMRB International on 13.2 million internet users over 26 cities, 5%
Indians deal in stock and shares, 5.5% buy products such as books, flowers and gifts and
14.2% buy travel tickets through internet. Most of the Indians use internet for e-mail and
information search. However, the numbers of users drawn to e-commerce are growing rapidly.
Table 1 shows size of online market in India.
36 The Icfai University Journal of Consumer Behavior, Vol. III, No. 4, 2008
Table 1: Online Market Size in India
2006-2007 (Figures in 2007-2008 (Figures in
Market Size
Rs. cr) Rs. cr)
Online Travel Industry 5,500 7,000
Online Retailing 850 1,105
Online Classifieds 540 820
Paid Content Subscription 20 30
Digital Downloads 170 255
Total B2C/C2C E-Commerce Market 7,080 9,210

Source: Syndicated Research of e-technology group @IMRB International
The travel industry draws maximum internet users, conducting online business and
thereby, generating maximum revenues. Online retailing, online classifieds which includes
matrimonials, jobs and property, automobile-related classifieds, paid content subscription
and digital downloads, attract less number of internet users. The reasons could be absence
of touch and feel, credibility in the payment system, untimely delivery of products and
lack of trust in online media.
The Why(s) of Online Retail Shopping and Buying
Advantages for marketers to sell online include the ability to reach a large number of
consumers worldwide (Strauss and Frost, 1999); to reach out to the younger lot of
population; and to fight the constraints of sale through traditional means of physical presence
in stores (La and Kandampully, 2002), which ultimately increases productivity and efficiency.
Advantages for customers to buy online include easy and wide access of products,
services, information; overall convenience; and direct effects of functional and utilitarian
benefits (Donthu and Garcia, 1999; Seiders et al., 2000; Ruyter et al., 2001; Chen and
Chang, 2003; and Monsuwé et al., 2004). However, some customers prefer to shop and
browse on the internet due to the fun, enjoyment and excitement involved, that is the
emotional and hedonic pleasures, either as individuals or as social groups (Bloch and
Richins, 1983; Hirschman, 1983; Childers et al., 2001; Menon and Kahn, 2002; and Parsons,
2002). So, a consumer’s motivation to shop online may be either due to an utilitarian
motive as a ‘problem solver’ or a hedonic motive in terms of ‘fun, fantasy…and enjoyment’
(Hirschman and Holbrook, 1982).
The modern Indian consumer is technologically aware, often educated and comfortable.
His attempts to shop online are due to an advancing technology as well as consumer
characteristics in terms of demographic, psychograhic, as well as situational influences.
The attitudes toward online shopping is thus affected by the web experience of usefulness
(Monsuwé et al., 2004) and enjoyment (Hirschman, 1983; and Childers et al., 2001);
consumer demographic and personality traits (Burke, 2002; and Dabholkar and Bagozzi, 2002);

situational factors (Wolfinbarger and Gilly, 2001) and previous online shopping experiences
(Shim et al., 2001).
The lifestyles of urban young Indians which is becoming increasingly hectic day by
day, the increasing rise in the number of working women, as well as significant technical
developments encourage consumers to go for online buying, primarily for convenience
and saving of time and effort. The growth in online travel industry in India may be attributed
to the increasing number of internet users mostly comprising college-going students and
youth who prefer speed, promptness and overall convenience. Internet users in India have
also begun to overcome the apprehensions regarding online payment. According to the
report presented by IMRB, 65% to 90% online consumers in India pay through credit
cards while the rest prefer payment on delivery or cash cards.
Thus, the growth of online retailing is being driven by ever increasing online buyers and
sellers and the changed attitude of internet users who look for speed, promptness,
convenience and better bargains. Saving of time and effort, as also the availability of wide
range of products at best prices are the other factors which are responsible for the growth
of online retailing. Online sellers can offer best prices as they don’t have to spend on
inventory handling and maintenance cost.
In spite of these, consumers are often apprehensive and wary of shopping online due
to computer illiteracy, technological complexity and often lack of understanding of the
buying/transaction process through internet (La Monica, 1999; and Seiders et al., 2000).
There are often concerns and reservations of not buying online due to the lack of physical
presence in a store (Wee and Ramachandra, 2000) or even lack of direct personal interaction
between the buyer and seller; problems with returning products that fail to meet
expectations, and the inability to touch or feel the product (Ruyter et al., 2001; and La and
Kandampully, 2002). Concerns of risk, insecurity and privacy (Merriman et al., 2002; and
Bhatnagar et al., 2000) also affect consumer acceptance of buying online.
It is important to identify the analogies and differences between traditional and online
shopping. It is also important that one is aware of the advantages and disadvantages of
both in order to understand consumers’ attitudes to choose one channel over the other.
Basic Determinants of Attitude Formation in the Context of Online Retail

Shopping
Attitudes may be defined as a person’s relatively enduring evaluation that develops positive
and negative feelings and tendencies toward an object, be it a person, product or idea.
They have a cognitive, affective and conative component, and consumer behavior is a sum
of these. An identification of factors that lead to the development of attitudes, and a proper
understanding of consumer attitudes towards online shopping can help retailers formulate
strategies for future growth and success. This study is an attempt to identify such factors
that lead to the development of positive attitudes towards online shopping.
One of the most widely researched and well-accepted models in the study of attitudes has
been Fishbein’s basic behavioral model and the subsequent models that he proposed gradually.
Studies on attitudes with particular reference to consumer behavior are well-documented
(Etter, 1975; Lutz, 1977; and Burnkrant and Page, 1982). According to Fishbein, people
form attitudes toward objects on the basis of their beliefs about these objects.
Academic research has also focused on examining the determinants of computer

technology acceptance among users (e.g., Davis, 1989; Moore and Benbasat, 1991; and
Taylor and Todd, 1995). The Technology Acceptance Model (TAM) (Davis, 1989; and Davis
et al., 1989) adapted from the theory of reasoned action (Ajzen and Fishbein, 1980) has
been supported empirically (Davis et al., 1989; Chen et al., 2002; and Monsuwe et al.,
2004) and appears to be the most widely accepted.
The general framework for consumers’ intentions to shop online is based on TAM, which
lays emphasis on the perceived ease of use and usefulness. However, there are other
factors that affect the development of positive attitudes towards consumers’ acceptance of
online services (Venkatesh, 2000; Moon and Kim, 2001; Burke, 2002; Dabholkar and Bagozzi,
2002; and Monsuwe´et al., 2004). It, thus, becomes imperative to incorporate other factors.
Consumers’ attitude towards online shopping depends on the consumers’ perceptions of
functional and utilitarian dimensions (Ruyter et al., 2001; and Monsuwé et al., 2004) or their
perceptions of emotional and hedonic dimensions (Hirschman, 1983; Menon and Kahn,
2002; and Childers et al., 2001). Research has indicated that factors like trust and confidence,
privacy, and security are important elements that affect consumers’ acceptance of online
services, either due to issues of money transaction or personal information (e.g., Hoffman
et al., 1999; and Yoon, 2002). Other determinants that affect the adoption of technology in
procuring products and services are individual differences that include traits such as consumer
variables like demographics and psychographics (Zumd’s, 1979; Homer and Kahle, 1988;
Harrison and Rainer, 1992; Eastin and LaRose, 2000; Dabholkar and Bagozzi, 2002; and
O’Cass and Fenech, 2003); and situational variables attributable to circumstances such as
experience, training and computer self-efficacy (Compeau and Higgins, 1995; Compeau
et al., 1999; Eastin and LaRose, 2000; Venkatesh and Morris, 2000; Shim et al., 2001; and
O’Cass and Fenech, 2003). (See Figure 1).
Utilitarian Dimensions
Usefulness
Usefulness may be defined as anything that adds value to an experience in terms of need
fulfillment and satisfaction. In terms of internet shopping, it is the consumers’ perception
that using the internet as a shopping medium enhances the outcome of their shopping
experience (Davis, 1989 and 1993; and Monsuwé et al., 2004). It reflects a functional and
utilitarian motive, wherein consumers have a wide access to a large range of products to
choose and buy from, thereby reducing his physical efforts and shopping time, thus,
leading to convenience (Darian, 1987; Seiders et al., 2000; and Ruyter et al., 2001).

Figure 1: Basic Determinants of Attitude Formation in the Context of
Online Retail Shopping
Convenience
Reference
Range of Products
Group
Detailed Information Influence Attitude
of Products Towards Online
Comparison of Online Buying Buying
Utilitarian
Brands in India Behavior
Dimensions
Ease of Use
Good Discount Emotional

Hedonic
Enjoyment
Dimensions
Age
Gender
Consumer
Education
Demographics
Income
Internet
Affordability
Usage
and Speed of
Internet
Ease of Use
Ease of use implies simplicity in usage as an experience, while and during the online
shopping process. It implies freedom from the effort and complexity involved during the
shopping process (Darian, 1987; and Davis, 1989 and 1993). Most online shopping stores
provide a product search engine, a navigation sequence guidance function and a section
on help and frequently asked questions to help consumers who search and purchase.
Emotional and Hedonic Dimensions

Enjoyment: Enjoyment is fun, excitement and joy associated with shopping online, thus
laying emphasis on the hedonic pleasures (Hirschman and Holbrook, 1982; Agarwal and
Karahanna, 2000; and Moon and Kim, 2001), rather than the utility (Davis et al., 1992).
Other Factors
Consumer Demographics, Psychographics and Sociographics: Age, gender,
education, and income along with personality styles have significant effects on attitude
formation in the context of online retailing (Marakas et al., 1998; Eastin and LaRose, 2000;
Ratchford et al., 2001; Burke, 2002; Dabholkar and Bagozzi, 2002; and Wood, 2002).
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. Internet usage is also an important determinant.
With the government of India committed to make information highway a priority, broadband
is available across the country at cheaper rates which is expected to further fall in the
near future.
Drivers Affecting Development of Positive Attitudes of Customers

in Online Shopping
Access
Access refers to the skill and capacity to provide a wide variety of goods and services to
the customers, online. It is important that a wide assortment of goods and services can
be accessed, viewed, compared against other alternatives on price and product-related
information, so that a purchase decision can be taken and a transaction can occur.
In today’s world, access is facilitated through global technological networks.
Access also depends on factors like internet connection quality and website design
and appearance. A well-designed user interface system reduces the consumer’s efforts in
searching information, making comparisons and making the final purchase decision.
Interactive tools lead to easier access for the consumers, facilitate two way communication
and thus have favorable effects on consumer purchase decisions (Ghose and Dou, 1998;
Dellaert and Kahn, 1999; Hoque and Lohse, 1999; Häubl and Trifts, 2000; Szymanski and
Hise, 2000; and Merrilees and Fry, 2003).
Performance
In the context of online shopping, performance by a firm is its ability to first, present an
offering on the web and second, to transact with the customer so as to leave both the
parties well off, most efficiently and effectively. The retailer’s website acts as a platform of
interaction between an online retailer and a buyer. A customer should be able to search
the web and order with ease. Speed, loading, navigation and all such aspects of computer
technology are important and affect ease of use.
Interpersonal interaction between the retailer and the buyer is an important consideration
especially to bring about the human element and the resulting relational benefits.
This interpersonal element in the selling and buying situation is important even in online
transactions (Cowles and Crosby, 1990; Aaker, 1992; Berry, 1995; Dabholkar, 1996; Gwinner
et al., 1998; Park and Kim, 2003, and Yen and Gwinner, 2003). Also, audiovisual impact
through the website and its product or service offering are crucial for effective performance,
both for functional and hedonic benefits. Website design elements and aesthetics, as
well as customization have an impact on consumer psychographics and consumer interest

in buying online and the e-retailer needs to pay attention to this (Dabholkar, 1996; Meuter
et al., 2000; Dailey and Heath, 2000; Bobbitt and Dabholkar, 2001; Madu and Madu,
2002; Jayawardhena et al., 2003; and Constantinides, 2004). Factors like performance,
convenience, ease of use and access, and enjoyment influence the adoption and use of
online retailing.
Security
Security pertains to trust and confidence in the online retailer with respect to issues of
finance and privacy. Research in the past has clearly illustrated the importance of security
during and after online purchases (Elliot and Fowell, 2000; Tamimi et al., 2000; Liao and
Cheung, 2001; Lynch et al., 2001; and Janda et al., 2002). Issues of trust, confidence,
and risk, either with the payment mode or with matters of privacy are always present in
the buyers’ mind (Aldridge et al., 1997; Kargaonkar and Wolin, 1999; Liebermann and
Stashevsky, 2002; and Merrilees and Fry, 2003). Establishing, communicating and
maintaining customers’ trust and confidence, and a feeling of security is an integral part
for a successful e-retailing strategy.
Information
The quantity, relevance and authenticity of information provided by the retailer is an important
factor that affects the building of positive attitudes in consumers, to buy online. Consumer
purchases are often based on the web appearances and information of the product or
service offering. The marketer needs to customize the information about products and
services to meet the customer’s needs and wants (Bakos, 1991 and 1997; and Wolfinbarger
and Gilly, 2001).
The internet provides facilities for navigation and searching information about the products
and services, their brands, features, price and also the availability status, shopping cart
and delivery. This encourages and facilitates customers to make online purchases (Wymbs,
2000; and Park and Kim, 2003). Another aspect of information that needs to be addressed
is in terms of post-transaction elements like delivery schedules, warranty services, return
and exchange policies, post-sales services and related technical support.
Transaction
Once a consumer has accessed the website, obtained information about the product and
service offerings and finally made a decision to buy online, the transaction is entered into.
Transaction is the result of the interplay between all the factors that have been mentioned
above, viz., access to a website quickly and speedily, the product and service information,
assurance, trust and security, overall performance and functional and hedonic pleasures.
Need for the Study

While the emergence of online retailing has impacted the way business is transacted,
it has also brought to surface the fact that the socio-psycho element in consumer behavior
has been affected. This necessitates the development of new business models.
While research has been focused on modeling the online buying and decision-making process
(Miles et al., 2000; Liu and Arnett, 2000; and Joines et al., 2003), research pertaining to
behavioral issues is lacking. Firms often fail to understand the needs and behavior of online
buyers (Peterson et al., 1997; Hoffman, 2000; Lee, 2002; and Shim et al., 2001), primarily
because the internet is a relatively new channel.
However, customer acceptance of e-retail services is critical to the success of the

concept of e-retailing in India and the marketer, therefore, has to understand the factors
involved. Online retailers often face the challenge of incorporating changes in their traditional
gamut of services to serve the customers most efficiently and effectively.
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 like motivation, perception, learning
and beliefs, and attitude. 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’, (Constantinides,
2004), 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.
Empirical Study
Objective
The study has been conducted with the objective of tapping the consumers’ feelings that
affect their attitudes regarding online shopping, with the ultimate objective of identifying
those factors and design characteristics that can help to develop positive attitudes in
consumers, towards online purchasing. The objectives may be summarized as follows:
• To determine the general opinion of consumers towards online retail shopping;
• To find the reasons why most Indian customers are apprehensive about online
retail shopping;
• To determine the relative importance of each of the attributes that are critical to
the success of online retail shopping with respect to the customer;
• To identify attributes which could act as critical factors towards the success of
an online shopping site;
• To establish the relationship between the attributes or factors relating to online

retail shopping; and
• To establish attitudinal differences across demographics, gender-wise and

age-wise, with respect to online retail shopping.
Methodology
The study undertaken is descriptive, diagnostic and exploratory in nature. It is aimed at
identifying the critical parameters in online retail shopping, tapping the consumers’ feelings

and attitudes regarding online shopping, and establishing attitudinal differences across
demographics. This study also aims at identifying customer requirements with respect to
online shopping and giving certain conclusions which can help an online shopping site
succeed. An extensive literature review led to identification of attributes related to online
shopping, which could influence consumers’ attitude towards online shopping.
These were adapted and incorporated in the questionnaires that were distributed to the
respondents.
The study was confined to people from the metropolitan city of Delhi and its adjoining
areas. The sample included the educated middle and upper class people who were aware of
online retail shopping. While selecting the city, non-probability and convenience sampling
techniques were used. Within the city, random sampling was used to collect data.
Variable Conceptualization and Instruments Developed for Collection
of Data
The literature review helped identify certain attributes related to online shopping, which
could influence consumers’ attitude towards online shopping. An attempt was made to
conceptualize and operationalize the various items from previous research works on
consumer attitudes and online shopping. Based on the literature review, the variables and
the items for the study, were conceptualized. These items were tested for reliability and
validity, so as to arrive at statistically proven items that could be identified as factors and
could affect consumers’ attitude towards online shopping. The adequacy of the scale was
examined in accordance with the recommendations provided in measurement literature
(Nunnally, 1978).
Qualitative validity was tested through the theoretical study as well as through expert
comments. The test for quantitative validity was done through an exploratory factor analysis.
The principal component method was used to examine the dimensionality of the scale so
as to include as many factors as there are in the analysis (Tabachnick and Fidell, 1989).
In considering the suitable rotation strategy, Varimax rotation was used as it minimizes
the number of variables which have high loadings on any one given factor, resulting in
clearer interpretations and generalizations of the research findings, which are deemed
important in an empirical research. With Eigen values above 1 and maximum iterations
for convergence as 100, the Varimax Rotation was thus applied and rotated factor loadings
examined. Factor loadings above α values of 0.50 were considered (Comrey, 1973).
Reliability of the final scale dimensions was calculated to assess the internal
consistency reliabilities of the scales using Cronbach’s (1951) alpha. The Cronbach’s
alpha was calculated to be 0.8271, indicating that the scale was internally consistent and
reliable (Cronbach, 1951; and Nunnally, 1967 and 1978).
The items that emerged to be valid and reliable was shown in Table 2. While the
factors/constructs proved to be statistically significant and the validity could not be negated,
for some part of the study, the scales were, considered to be uni-dimensional with the
items being considered to be a single composite set of individual measures. The tests for
validity and reliability identified a total of 41 items, which got grouped under 11 factors/
constructs viz., performance, convenience, information, personalization, interaction,
Table 2: Constructs and Items that Emerged after Pilot Study
Construct Items
Performance I’ll not buy if order form is ambiguous.
I can’t take the risk of delayed delivery.
It’s boring to wait for a site to load.
I prefer prompt confirmation through e-mail.
I can’t tolerate errors in processing.
I prefer simplicity in purchase transactions.
Convenience For me, time is very precious.
I prefer home delivery.
I would love to shop sitting in my house.
Information In my opinion, information is power.
Extensive product information should be provided.
Accuracy of information increases credibility.
Product tracking process makes online shopping more reliable.
Personalization I like to receive individual attention during the purchase process.
I like to interact with the sales person to resolve all uncertainties and
doubts during and after the purchase process.
Interaction Interaction with sales person enhances purchase experiences.
I always have a close look at the product before buying.
I look through testimonials and online user groups before buying.
Reliability and Trust Orders should be fulfilled accurately.
I believe that services promises should be kept.
Accurate transactions and records increase customer loyalty.
I visit only reputed stores.
Uncertainty about warranties is a major concern for me.
Refunds should be made correctly and promptly.
(Contd...)

Table 2: Constructs and Items that Emerged After Pilot Study
(...contd)
Construct Items
Reliability and Trust Trust in buyer-seller relationship is important for me.
I would not want my personal details to be divulged to other

customers.
My privacy is important to me.
I am afraid that my private information will be used in an unwanted

manner.
Security I have no desire to take unnecessary risks.
Security of my personal details is very important to me.
Online shopping makes me receive junk mails.
A security and privacy promise will enable me to make online

purchases.
Aesthetics I like to visit a site that is aesthetically well-arranged.
Beauty improves my mood.
Nothing beautiful ever goes out of my notice.
Access to Foreign
I search for ways to buy foreign goods.
Goods
I like to buy rare and unique goods.
Post-Sales Service Better the post-sales service, better the retailer.
I like the retailer who provides courteous and prompt responses.
Continuous
I feel services should change with the changing needs.
Improvement
Use of latest technology adds to customers’ convenience.
reliability and trust, security, aesthetics, access to foreign goods, post-sales service and
continuous improvement.
The questionnaire so designed comprised two types of statements to be measured

on a five-point Likert scale. The first set of statements was aimed at finding out the
general attitude of the customers towards online shopping, where the respondents
were asked to describe their experiences with websites. The second set was about
how they relate and value each attribute concerning online shopping, thus measuring
relative customers’ preferences which helped identify parameters of more importance.
The study was thus aimed at identifying parameters with respect to attitudinal
development towards online shopping and thereby identifying critical success factors
in online shopping behavior.
Hypothesis
H1: There is no significant difference in the importance assigned to different
constructs that affect the development of attitude towards online retail shopping.
H2: There is a positive correlation between the various constructs that impact
consumers’ attitude to online shopping.
H3: Reliability and trust of an online retail store is one of the most important
issues that an Indian consumer takes into consideration, while thinking of
shopping online.
H4: Continuous improvement is necessary to retain old online customers and create
new ones.
Data Collection
The final questionnaire that was developed to capture quantitative data, then administered
to a cross section of respondents, as well as the responses were subjected to analysis
through quantitative techniques for analysis of data. The findings were finally presented
with a set of conclusions and recommendations.
The sample was heterogeneous and comprised educated middle and upper class
people who were aware of online retail shopping. A total of 160 questionnaires were found
to be complete and valid for analysis.
Analysis of Data
The first part of the study was aimed at finding out the general opinion of customers regarding
online shopping where, the respondents were asked to describe their experiences with
websites. The analysis was qualitative in nature. It was observed that the Indian consumer
rates reliability and trust as the most important aspects of an online retail store. This is
followed by information, continuous improvement, post-sales service and security.
Performance is important but is correlated to the above mentioned constructs. When it
comes to interaction with either sales personnel or product, consumers prefer traditional
retailing to online retailing as there is very less interaction in the later case. Most customers
feel that an aesthetically well arranged site will improve their mood and motivate them to
browse through the site. When it comes to gender differences, male respondents have
more awareness when compared to their female counterparts. Also, men prefer online retailing
as it is a more convenient way of shopping where they can sit at home and shop but women
prefer to shop by going out which they feel is fun and relaxation.
Online retailers should engage in trust building activities as consumers’ rate reliability
of the providers as the most important aspect of a sale. According to the respondents who
have already tried online shopping, a majority is apprehensive as there is a possibility of

a credit card fraud or leakage of personal information. So, the online providers must
provide a security promise to the customers so that their apprehensions are eliminated.
Further to capitalize on the uniquely personal nature of online shopping, internet retailers
should ‘customerize’ content delivery and site navigation to individual consumers.
Also, consumers feel that online stores should adapt new technology so that they can
provide new services and promote ease of use.
As far as the second part of the study was concerned, the Statistical Package for Social
Sciences (SPSS)—10.5 version was used for data analysis. The statistical analysis was
descriptive as well as inferential, and included multivariate techniques through correlation
analysis and regression analysis. Univariate, bivariate and multivariate statistical techniques
were conducted for testing of the hypotheses and to arrive at the research findings.
The factor analysis had grouped the items into 11 constructs with 41 items.
For analytical purposes, descriptive statistics were used through measures of central
tendency and dispersion. The consumers were asked to rate the parameter-based
statements on a scale of 5, based on their level of agreement or disagreement to the
statement. The sum total gave a consolidated score. The means and standard deviation
were calculated construct-wise and item-wise. (Tables 3 and 4). The mean and standard
deviation for the various items and constructs were calculated. The mean scores for the
various constructs ranged between 3.3563 and 4.4575, with ‘access to foreign goods’
Table 3: Descriptives for the Various Items Affecting Online

Buying Behavior
Item Total
Items in Each Dimension X SD
Cor.
Performance
Simplicity of order form 4.2688 0.7500 0.363**
I cannot take the risk of delayed delivery 4.2375 0.7224 0.486**
It is boring to wait for a site to load 4.1750 0.6964 0.368**
I prefer prompt confirmation through e-mail 4.1125 0.8687 0.507**
I cannot tolerate errors in processing 3.4938 1.3552 0.563**
I prefer simplicity in purchase transactions 4.0500 0.7076 0.403**
Convenience
For me, time is very precious 4.4312 0.7820 0.456**
I prefer home delivery 3.7875 1.0780 0.832**
I would love to shop sitting in my house 3.3313 1.1256 0.784**
(Contd...)
Buying Behavior (...contd)
Item Total
Items in Each Dimension X SD
Cor.
Information
In my opinion, Information is power 4.6188 0.5814 0.749**
Extensive product information should be provided 4.5625 0.5684 0.681**
Accuracy of information increases credibility 4.4875 0.6913 0.648**
Product tracking process makes online

3.8250 0.8207 0.582**
shopping more reliable
Personalization
I like to receive individual attention during the

4.0625 0.8665 0.935**
purchase process
I like to interact with the sales person to resolve

all uncertainties and doubts during and after 3.9750 0.8084 0.925**
the purchase process
Interaction
Interaction with sales person enhances

3.9875 0.7353 0.521**
purchase experience
I always have a close look at the product

4.4250 0.7974 0.715**
before buying
I look through testimonials and online user

3.1062 1.0069 0.783**
groups before buying
Reliability and Trust
Orders should be fulfilled accurately 4.8250 0.3812 0.189*
I believe that services promises should be kept 4.6063 0.6354 0.408**
Accurate transactions and records increase

4.3250 0.8359 0.473**
customer loyalty
I visit only reputed stores 3.6500 1.0533 0.553**
Uncertainty about warranties is a major

4.3750 0.6891 0.429**
concern for me
Refunds should be made correctly and promptly 4.8500 0.3582 0.210**
(Contd...)

Buying Behavior (...contd)
Item Total
Items in Each Dimension X SD Cor.
Trust in buyer seller relationship is
4.5938 0.6374 0.642**
important for me
I would not want my personal details to be
4.4938 0.6244 0.725**
divulged to other customers
My privacy is important to me 4.4375 0.6510 0.658**
I am afraid that my private information will be 4.4187 0.6191 0.578**
used in an unwanted manner
Security
I have no desire to take unnecessary risks 4.2562 0.7290 0.636**
Security of my personal details is very important
4.3625 0.7048 0.718**
to me
Online shopping makes me receive junk mails 3.9563 0.7298 0.428**
A security and privacy promise will enable me
3.9812 0.9679 0.586**
to choose online buying
Aesthetics
I like to visit a site that is aesthetically 4.1500 0.7867 0.594**
well arranged
Beauty improves my mood 4.1312 0.8768 0.767**
Nothing beautiful ever goes out of my notice. 3.7437 0.9857 0.775**
Access to Foreign Goods
I search for ways to buy foreign goods 3.1688 1.2195 0.848**
I like to buy rare and unique goods 3.5438 0.8891 0.688**
Post-Sales Service
Better the post-sales service, better the retailer 4.1625 0.7514 0.805**
I like the retailer who provides courteous and 4.5188 0.7352 0.795**
prompt responses
Continuous Improvement
I feel services should change with
4.4688 0.7086 0.784**
changing needs
Use of latest technology adds to customer
4.2438 0.7668 0.819**
convenience
Note: * Correlation is significant at 0.05 level (2-tailed); and ** Correlation is significant at 0.01 level (2-tailed).
Table 4: Descriptives for the Various Constructs Affecting Online
Buying Behavior
Constructs No. of Items X SD
Performance 6 4.0563 0.3947
Convenience 3 3.8500 0.7121
Information 4 4.3734 0.4371
Personalization 3 4.0187 0.7788
Interaction 3 3.8396 0.5803
Reliability and Trust 10 4.4575 0.3328
Security 4 4.1391 0.4622
Aesthetics 3 4.0083 0.6344
Access to Foreign Goods 2 3.3563 0.8230
Post-Sales Service 2 4.3406 0.5944
Continuous Improvement 2 4.3563 0.5918
being a variable, that scored the least and ‘reliability and trust’, scoring the highest.
This clearly indicates that in India, access to foreign goods via the internet is not a factor
that would develop a positive attitude towards online shopping. While it is a factor that
may lure people to buy online, what really impacts online shopping process is reliability
and trust with the system.
After calculations on descriptive statistics, the linear relationships were established
among the various variables using correlation analysis, so as to measure the strength
and direction of the linear relationship between them. Each variable was correlated with
its individual parameters to establish the linear relation between them (Table 3).
Also, the various constructs were correlated with each other to establish the strength of
correlation between them, and get the hypotheses tested. (Tables 7 and 8).
A series of multiple regression analysis was conducted to test the hypotheses in

order to assess the structural relationships between the various constructs, by taking
one attribute as the dependent variable and other attributes as independent variables.
The procedure used for this analysis involved a study of the p-value, which indicated
whether or not the regression model explained a significant portion of the variance of the
dependent variable and the independent variables. (Tables 9 and 10).
Hypothesis Testing
• Null Hypothesis – The Variance/Mean between the two groups do not differ
significantly and are same/equal.

• Alternate Hypothesis – The Variance/Mean between the two groups differ
significantly and are not the same/equal.
Null Hypothesis – The Variance/Mean between the two groups do not differ significantly
and are same/equal. H0: µ1 = µ2.
Alternate Hypothesis – The Variance/Mean between the two groups differ significantly
and are not the same/equal. H1: µ1 ≠ µ2.
Hypothesis 1
There is no significant difference in the importance assigned to different constructs that
affect the development of attitude towards online retail shopping.
Hypothesis 1 (i)
There is no significant difference in the importance assigned to the various constructs
when compared between men and women.
The data for all the constructs was subjected to the Independent Samples t-test.
The Levene’s test for equality of variances was applied. The F-statistic value had a
corresponding significance (or p-values), of more than 0.05 for all the constructs, except
two, namely aesthetics and convenience. This meant that for all the constructs except
these two, the null hypothesis failed to get rejected, and that the variances of the female
and male sample were equal. This supported the use of pooled variance t-tests for each of
these to test the equality of means. For aesthetics and convenience, the null hypothesis
got rejected and that implied that the variances of the female and male sample were
unequal. This supported the use of separate variance t-tests for each of these to test the
Table 5: Hypothesis Testing – Hypothesis No. 1 (i)

Sig. 95% Confidence
Sig. t-
Constructs Sample Mean SD F (2- Interval of the
(p) value
tailed) Difference
Gender Lower Upper
Performance Female 3.929 0.372

0.154 0.696 –4.290 0.000 –0.3712 –0.1371
Male 4.183 0.377
Female 3.762 0.785
Convenience 0.007 –1.561 0.121 –0.3965
7.380 0.04646
Male 3.937 0.623
Information Female 4.334 0.424

0.127 0.722 –1.131 0.260 –0.2145 0.05825
Male 4.412 0.448
Personalization Female 3.968 0.772

0.169 0.682 –0.811 0.418 –0.3435 0.1435
Male 4.068 0.786
Female 3.925 0.522
Interaction 0.837 0.362 1.876 0.062 –0.0089 0.3506
Male 3.754 0.624
(Contd...)
Table 5: Hypothesis Testing – Hypothesis No. 1 (i)
(...contd)
Sig. 95% Confidence

Sig. t-
(p) value
tailed) Difference
Gender Lower Upper
Reliability and Female 4.401 0.322

0.681 0.410 –2.162 0.032 –0.2153 –0.0097
Trust Male 4.513 0.335
Security Female 4.115 0.435

1.625 0.204 –0.640 0.523 –0.1915 0.09774
Male 4.162 0.489
Aesthetics Female 3.970 0.566

6.707 0.011 –0.747 0.456 –0.2735 0.1235
Male 4.045 0.697
Access to Female 3.437 0.756
2.403 0.123 1.251 0.213 –0.0094 0.4191
Foreign Goods Male 3.275 0.882
Post-Sales Female 4.225 0.544
0.668 0.415 –2.501 0.013 –0.4139 0.0486
Service Male 4.456 0.622
Continuous Female 4.312 0.586

0.001 0.981 –0.935 0.351 –0.2724 0.09740
Improvement Male 4.400 0.597
equality of means. The associated values of significance (p-values), were again more than
0.05, except for three constructs, namely performance, post-sales service and reliability
and trust. This meant that for all the constructs, except these three, the null hypothesis
failed to get rejected and the difference in the means is not significant (Table 5).
Hypothesis 1 (ii)
There is no significant difference in the importance assigned to the various constructs
when compared between the ages below and above 25 years.
The data for all the constructs was subjected to the independent samples t-test.
The Levene’s test for equality of variances was applied. The F-statistic value had a
corresponding significance (or p-values), of more than 0.05 for all the constructs, except
interaction. This meant that for all the constructs except this, the null hypothesis failed to
get rejected, and that the variances of the sample below and above the age of 25 years
were equal. This supported the use of pooled variance t-tests for each of these, to test the
equality of means. For interaction, the null hypothesis got rejected which implied that the
variances of the sample below and above the age of 25 years were unequal. This supported
the use of separate variance t-tests to test the equality of means. The associated values
of significance (p-values), were again more than 0.05, except for three constructs, namely
aesthetics, convenience and continuous improvement. This meant that for all the constructs
except these three, the null hypothesis failed to get rejected and the difference in the
means was not significant (Table 6).

Table 6: Hypothesis Testing – Hypothesis No. 1 ( ii)
Sig. 95% Confidence
Sig. t-
(p) value
tailed) Difference
Age (Yrs) Lower Upper
Performance
< 25 4.064 0.393
0.001 0.971 0.248 0.805 –0.1087 0.1398
> 25 4.049 0.398
Convenience < 25 3.699 0.734
0.932 0.336 –2.463 0.015 –0.4944 –0.0544
> 25 3.973 0.672
Information < 25 4.302 0.449
0.208 0.649 –1.883 0.062 –0.2658 0.00636
> 25 4.431 0.419
Personalization < 25 3.923 0.854
0.533 0.466 –1.402 0.163 –0.4167 0.0707
> 25 4.096 0.706
Interaction < 25 3.763 0.658
4.095 0.045 –1.459 0.147 –0.3242 0.0489
> 25 3.901 0.503
Reliability and < 25 4.466 0.309
0.932 0.336 0.314 0.754 –0.0881 0.1214
Trust > 25 4.450 0.352
Security < 25 4.062 0.468

0.121 0.729 –1.911 0.058 –0.2831 0.00467
> 25 4.201 0.449
Aesthetics < 25 3.888 0.652
0.471 0.494 –2.180 0.031 –0.4140 –0.0204
> 25 4.106 0.605
Access to < 25 3.458 0.749
4.944 0.028 1.424 0.156 –0.0719 0.4431
Foreign Goods > 25 3.272 0.874
Post-Sales < 25 4.201 0.669
9.920 0.002 –2.734 0.009 –0.4360 –0.0703
Service > 25 4.454 0.500
Continuous < 25 4.243 0.622
3.803 0.053 –2.215 0.028 –0.3893 –0.0223
Improvement > 25 4.448 0.552
Hypothesis 2
There is a positive correlation between the various constructs that impact consumers’
attitude to online shopping.
The various constructs of the customer requirements were subjected to a correlation
analysis. The constructs were found to correlate with each other (Table 7). The hypothesis
failed to get rejected and it was proved that there is a positive correlation between the
various constructs of customer requirements.
Hypothesis 2 (i)
Performance by an online retailer and the information provided are positively correlated.
The hypothesis failed to get rejected (Table 8).
Hypothesis 2 (ii)
Performance by an online retailer and interaction are positively correlated.
Table 7: Correlation Analysis Between Constructs
Trust
Service
Security
Access to
Interaction
Aesthetics
Post-Sales
Constructs
Information
Continuous
Convenience
Improvement
Performance
Reliability and
Foreign Goods
Personalization
Performance 1.00 0.178* 0.377** 0.194* 0.172* 0.266** 0.363** 0.316** 0.136 0.344** 0.288**
Convenience 0.178* 1.00 0.225** 0.081 0.053 0.297** 0.231** 0.131 0.115 0.092 0.284**
Information 0.377** 0.225** 1.00 0.335** 0.277** 0.357** 0.271** 0.331** 0.12 0.258** 0.473**
Personalization 0.194* 0.081 0.335** 1.00 0.236** 0.281** 0.250** 0.445** 0.252** 0.156* 0.245**
Interaction 0.172* 0.053 0.277** 0.236** 1.00 0.281** 0.301** 0.161* 0.235** 0.223** 0.268**
Reliability and 0.266** 0.297** 0.357** 0.281** 0.281** 1.00 0.322** 0.336** 0.167* 0.322** 0.355**
Trust
Security 0.363** 0.231** 0.271** 0.250** 0.301** 0.322** 1.00 0.309** 0.131 0.324** 0.326**
Aesthetics 0.316** 0.131 0.331** 0.445** 0.161* 0.336** 0.309** 1.00 0.197* 0.434** 0.313**
Consumer Attitude Towards Online Retail Shopping in the Indian Context

Access to
0.136 0.115 0.120 0.252** 0.235** 0.167* 0.131 0.197* 1.00 0.008 –0.133
Foreign Goods
Post-Sales
0.344** 0.092 0.258** 0.156* 0.223** 0.322** 0.324** 0.434** 0.008 1.00 0.399**
Service
Continuous
0.288** 0.284** 0.473** 0.245** 0.268** 0.355** 0.326** 0.313** –0.133 0.399** 1.00
Improvement
Note: * Correlation is significant at 0.05 level (2-tailed); and ** Correlation is significant at 0.01 level (2-tailed).
55
Hypothesis 2 (iii)
Performance by an online retailer and post-sales service are positively correlated.
Hypothesis 2 (iv)
Performance by an online retailer and reliability are positively correlated.
Hypothesis 2 (v)
Performance by an online retailer and convenience are positively correlated.
Hypothesis 2 (vi)
Security and reliability are positively correlated.
Table 8: Hypothesis Testing – Hypothesis 2

Correlation Analysis Between Constructs
Personalization
Reliability and
Performance
Convenience
Information
Constructs
Post-Sales
Interaction
Security
Service
Trust
Performance 1.00 0.178* 0.377** – 0.172* 0.266** – 0.344**
Convenience 0.178* 1.00 0.225** – – – – –
Information 0.377** 0.225** 1.00 – 0.277** – – –
Personalization – – – 1.00 0.236** – – –
Interaction 0.172* – 0.277** 0.236** 1.00 – – 0.223**
Reliability and
– – – – –
0.266** 1.00 0.322**
Trust
Security – – – – – 0.322** 1.00 –
Post-Sales
0.344** – – – 0.223** – – 1.00
Service
Note: * Correlation is significant at 0.05 level (2-tailed); and ** Correlation is significant at

0.01 level (2-tailed).
Hypothesis 2 (vii)
Information provided by an online retailer and interaction are positively correlated.
Hypothesis 2 (viii)
Information provided by an online retailer and convenience are positively correlated.
Hypothesis 2 (ix)
Interaction between the retailer and personalization are positively correlated.
Hypothesis 2 (x)
Interaction between the retailer and post sales are positively correlated.
The hypothesis failed to get rejected (See Table 8).
Hypothesis 3
Reliability and trust of an online retail store is one of the most important issues that an
Indian consumer takes into consideration while thinking of shopping online.
Regression analysis was performed, with the reliability and trust dimension as the
dependent variable and performance, convenience, information, personalization, interaction,
Table 9: Hypothesis Testing – Hypothesis No. 3
R Standardized
Model R F Sig. Coefficients t Sig.
Square
Beta
1 0.710a 0.504 15.147 0.000a
1 Constant – 3.757 0.000
Performance –0.163 –2.593 0.010
Convenience 0.093 1.487 0.139
Information 0.076 1.050 0.295
Personalization 0.185 2.691 0.008
Interaction 0.031 0.517 0.606
(Contd...)

security, aesthetics, access to foreign goods, post-sales service and continuous
improvement as independent variables. On entering the variables in a single block, as
shown in Table 9, it was found that 50.4% of the variance in reliability and trust is explained
by all the other constructs. (R2 = 39%, F-value = 67.227, p < 0.05). Of the ten dimensions,
four offered significant contributions (performance, t = –2.593, p < 0.05; security,
t = –3.447 5.8, p < 0.05; personalization, t = 2.691, p < 0.05; and continuous improvement,
t = 5.920, p < 0.05) (Table 9).
Table 9: Hypothesis Testing – Hypothesis No. 3 (Contd...)
R Standardized
Square
Beta
1 Security –0.225 –3.447 0.001
Aesthetics 0.001 0.014 0.988
Access to Foreign Goods 0.013 0.207 0.837
Post-Sales Service 0.106 1.438 0.152
Continuous Improvement 0.452 5.920 0.000
Note: Predictors: Performance, Convenience, Information, Personalization, Interaction,

Security, Aesthetics, Access to foreign goods, Post-sales service and Continuous
improvement.
Dependent Variable: Reliability and trust.
The hypothesis failed to get rejected. Reliability and trust of an online retail store can
be improved by improving all other factors and also any degradation in the factors mentioned
above would reduce the reliability of the online store.
Hypothesis 4
Continuous improvement is necessary to retain old online customers and create new ones.
Regression analysis was performed, with the continuous improvement dimension as
the dependent variable, and performance, convenience, information, personalization,
interaction, reliability and trust, security, aesthetics, access to foreign goods and
post- sales service as independent variables. On entering the variables in a single block,
as shown in Table 10, it was found that 53.8% of the variance in continuous improvement
is explained by all the other constructs. (R2 = 53.8%, F-value = 17.380, p < 0.05). Of the
ten dimensions, five offered significant contributions (security, t = 3.906, p < 0.05; access
to foreign goods, t = –3.167, p < 0.05, information, t = 3.931, p < 0.05, personalization,
t = 1.987, p < 0.05; and, reliability and trust, t = 5.920, p < 0.05) (Table 10).
The hypothesis failed to get rejected. Therefore, when a store keeps improving its
performance, security, etc., customers feel that the online store is improving itself continuously.
Table 10: Hypothesis Testing – Hypothesis No. 4
R Standardized
Square
Beta
1 0.734a 0.538 17.380 0.000a
1 Constant – –1.169 0.244
Performance 0.091 1.480 0.141
Convenience 0.069 1.147 0.253
Information 0.261 3.931 0.000
Personalization 0.015 0.215 0.830
Interaction 0.018 0.306 0.760
Reliability and Trust 0.421 5.920 0.000
Security 0.244 3.906 0.000
Aesthetics 0.054 0.717 0.475
Access to Foreign Goods –0.186 –3.167 0.002
Post-Sales Service 0.140 1.987 0.049
Note: Predictors: Performance, Convenience, Information, Personalization, Interaction, Security,

Aesthetics, Access to foreign goods, Post-sales service and Continuous improvement.
Dependent Variable: Continuous improvement.
Conclusion
The study is very relevant in the present context because of the boom in the IT sector.
There are significant technical developments taking place across the globe which aim at
human convenience. The present lifestyle is such that everyone looks forward to save
time and search for new methods of comfort and convenience in all spheres of life. With a
significant rise in the number of employed women, online shopping has become relevant
in the Indian context also. Current retailing trends show a shift from the traditional
store-based retailing to an increased use of the internet in order to serve their customers
24 hours on all week days. Be it food, fashion, consumer electronics, books, entertainment
or even general merchandise, everything is always available. Also, with the globalization
of every operation related to business, making products available to people across the
country and the world with the click of a mouse, becomes an issue of strategic importance.
What is crucial is an unmatched customer experience that not only satisfies his needs,
but delights him maximally. Based on the analysis of data, this study reached a logical
conclusion through identification of key design areas. It helped understand what a consumer
expects from an online retailing store to satisfy and delight him.

The study is aimed at identifying customer requirements with respect to online shopping
and giving certain conclusions to help an online shopping site succeed. It also tries to
identify which, attributes, the consumers’ consider as important. An extensive literature
review led to the identification of several attributes related to online shopping which can
influence consumers’ attitude towards online shopping. These were used in the empirical
study.
Managerial Implications
Current retail marketing trends show a shift from traditional means of a store format to an
increased use of technology via the internet. Businesses are experiencing a rapid
transformation with the adoption of technology as a means for exploiting the commercial
potential and to complement their ongoing activities. The retail business is no exception,
where business is moving online. With increasing competition in online retail services,
providers need to carefully cope up with the emerging realities of retailing and reevaluate
their strategies, keeping in view consumer demographics and psychographics.
With internet becoming a popular medium of buying and selling in the world, as a
preferred alternative that complements or supplements the experiences of a physical
store, the Indian market can remain no exception. However, in a country like India, online
experiences are still looked up as complex and uncomfortable. This is evident when one
sees that online buying in India is popular only among the select urban youth. There are
evolving customer expectations, fears and inhibitions. Amidst such a scenario, the seller
would have to devise strategies that are based on sound consumer behavioral research.
This points at the need for research to identify the factors that determine the acceptance
of online buying by the consumers, attitude, being one of them. By examining the various
dimensions uncovered in this study, online retailers can develop a better understanding of
their customers' needs. With a behavioral orientation, online marketers can form strategies
that can help the development of positive attitudes in the minds of online shoppers. ❑
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Consumer Attitude Towards Online Retail Shopping in India

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Consumer Attitude Towards Online Retail

Shopping in the Indian Context

© 2008 The Icfai University Press. All

Online marketing is an area where, research pertaining to behavioral issues is lacking

Consumer Attitude Towards Online Retail Shopping in the Indian Context 35

Bakos (1991), describes an e-market as “... an interorganisational information system

Businesses are conducted both through traditional means as well as online.

Online Retail in India

Online Travel Industry 5,500 7,000

Online Retailing 850 1,105

Online Classifieds 540 820

Paid Content Subscription 20 30

Digital Downloads 170 255

Total B2C/C2C E-Commerce Market 7,080 9,210

Consumer Attitude Towards Online Retail Shopping in the Indian Context 37

Basic Determinants of Attitude Formation in the Context of Online Retail

Academic research has also focused on examining the determinants of computer

Consumer Attitude Towards Online Retail Shopping in the Indian Context 39

Good Discount Emotional

Emotional and Hedonic Dimensions

Drivers Affecting Development of Positive Attitudes of Customers

Consumer Attitude Towards Online Retail Shopping in the Indian Context 41

Need for the Study

However, customer acceptance of e-retail services is critical to the success of the

Consumer behavior is affected by consumer demographic traits, psychological

• To determine the general opinion of consumers towards online retail shopping;

• To establish the relationship between the attributes or factors relating to online

• To establish attitudinal differences across demographics, gender-wise and

Consumer Attitude Towards Online Retail Shopping in the Indian Context 43

Table 2: Constructs and Items that Emerged after Pilot Study

I can’t take the risk of delayed delivery.

It’s boring to wait for a site to load.

I prefer prompt confirmation through e-mail.

I can’t tolerate errors in processing.

I prefer simplicity in purchase transactions.

Convenience For me, time is very precious.

I prefer home delivery.

I would love to shop sitting in my house.

Information In my opinion, information is power.

Extensive product information should be provided.

Accuracy of information increases credibility.

Product tracking process makes online shopping more reliable.

Personalization I like to receive individual attention during the purchase process.

Interaction Interaction with sales person enhances purchase experiences.

I always have a close look at the product before buying.

I look through testimonials and online user groups before buying.

Reliability and Trust Orders should be fulfilled accurately.

I believe that services promises should be kept.

Accurate transactions and records increase customer loyalty.

I visit only reputed stores.

Uncertainty about warranties is a major concern for me.

Refunds should be made correctly and promptly.

Consumer Attitude Towards Online Retail Shopping in the Indian Context 45

Reliability and Trust Trust in buyer-seller relationship is important for me.

I would not want my personal details to be divulged to other

My privacy is important to me.

I am afraid that my private information will be used in an unwanted

Security I have no desire to take unnecessary risks.

Security of my personal details is very important to me.

Online shopping makes me receive junk mails.

A security and privacy promise will enable me to make online

Aesthetics I like to visit a site that is aesthetically well-arranged.

Performance 1.00 0.178* 0.377** – 0.172* 0.266 – 0.344

Information 0.377 0.225 1.00 – 0.277** – – –