Perception of Youth towards Online Shopping

Dr. Surendra Malviya

Faculty at Institute of management and Studies, DAVV, Indore

surendra.malviya@gmail.com

8962845173

Chetna Sawant

Faculty at IIPS, DAVV, Indore.

meghasawant42@yahoo.com

7828395059

Electronic copy available at: http://ssrn.com/abstract=2497851

Abstract

Todays increasing population maximum lie in the category of youth. Youths are busy in their
schedule. So youths perception has changed towards online shopping. Because now purchasing
is just away of one click and it reduces their precious time. They rely more on online for
ticketing, booking or shopping. This study includes youth of Indore. Sample size for this study
was 170 but 13 were discarded and only 157 respondents was taken into consideration. Primary
data was collected by using closed end questionnaire. This questionnaire consist of two section,
section A and section B. Section A, included the demographic profile of the respondent, which
includes gender, age, qualification and occupation of the respondents. Section B, include 16
statements which were measured by five point Likert scale ranging from strongly disagree to
strongly agree. This research identified six factors Web portal Quality, Web portal ease of use,
Security and other policy, Clear Payment and Delivery, Pre and Post Sales Services, Trust on
Web portal, . All the six factors have given label YPWP (Youth Perception for Web portal).

Keywords Youth Perception, Web portal.

Introduction

E-commerce in the present day is swiftly on the rise field in whole World. And India is not
untouched with this meadow rather growing additional and hastier. Indian youths curiosity in
online shopping is escalating day by day. Youths perception towards online shopping is
different, they see towards it as ease of time, comfortless, varieties and with more interest.
Aforementioned when online shopping had just come into view the perception towards online
shopping was high rates, unsecured, and untrusted. But leisurely the perception got changed and
at the moment it is a blasting field especially among Indian Youths. Discussion in relation to
youth schedule, it is extremely frenzied, stud, job or work is on their former apprehension so
they dont have an adequate amount of time to go for shopping and purchasing rather they find it
easy to sit at home, office or college and in any liberated instance of five or ten minutes can
place and order for themselves or their neighbor once. Online shopping creates an craziness
among youths especially for females either a girl or a lady because previous we observe women
spending a lot of time in window shopping in hunt of a diminutive thing to get best thing at best

Electronic copy available at: http://ssrn.com/abstract=2497851

price but online shopping had solved their problem while just sitting they can search for many
site at a time and choose best deal with affordable price and can place an order within few
minutes.

Online shopping sites face competition from thousands of available options. Online traffic has
been increased which shows the popularity of the Internet shopping. Youths are very excited
towards it now a day.

Review of Literature

The consumer perception towards online shopping depends on ease of using website. Menon
and Kahn, (2002); Childers et al., (2001); Mathwick et al., (2001) concluded that Online
shopping features can be either consumers perceptions of functional and utilitarian dimensions,
like ease of use and usefulness, or their perceptions of emotional and hedonic dimensions
like enjoyment by including both utilitarian and hedonic dimensions, aspects from the
information systems or technology literature, as well as the consumer behavior literature are
integrated in our framework. Li and Zhang (2002) defined consumer satisfaction as the extent to
which consumes perceptions of the online shopping experience confirm their expectations.
Kateranttanakul (2002) argued that the reliability of website content facilitates consumers to
perceive lower risks, better justifications for their decisions and ease in reaching the optimal
decisions, and in turn affects customer satisfaction and intention to purchase online.

Jung-Hwan and Chungdo (2010) conducted a research to compare the e-service quality
perceptions of US and South Korean consumers in relation to overall e-service quality, e-
satisfaction, and e-loyalty to understand geographic and cultural differences in the context of
international expansion of e-business. Results of the research revealed that there is a significant
positive effect of overall e-service quality on consumerse-satisfaction towards online shopping
and the positive effects of overall e-service quality and e-satisfaction on e-loyalty (Jung-Hwan &
Chungho, 2010). Technology factors deal with the consumers perceptions of their interaction
with the B2C website and the Internet merchant responsible for that website. Some researchers
focus primarily on the impact of consumer perceptions of website characteristics (Ho and Wu
1999, Szymanski and Hise 2000), such as logistical support, security, homepage design, and the

Electronic copy available at: http://ssrn.com/abstract=2497851

like, on customer satisfaction with Internet shopping. These insights into consumer perception
help identify features of Internet stores that have considerable impact on building customer
satisfaction.
Consumers previous experiences with online purchases, or lack thereof, can be a significant
influence of levels of risk perception by consumers and their purchasing decisions [Dillon, T. D.,
& Reif, H. L. (2004). Factors influencing consumers e-commerce commodity purchases.
Information Technology, Learning, and Performance, 22(2), 1-12.].
Churchill and Surprenant urged disconfirmation as an intervening variable affecting satisfaction
and that the effect of disconfirmation is adequately captured by expectation and perceived
performance. Syed and Norjaya (2010) had conducted a study to investigate the key factors that
influencing customer satisfaction through online shopping. Jarvenpaa and Todd [1997] claim that
it may be that consumers expect e-commerce to offer a wider product variety because of the
reach of the Internet and the potential to track down specialty goods and services. Superior
product assortment results in positive perceptions of customer satisfaction [Szymanski & Hise
2000], especially if the customer wants an item that isnt widely available. Tse and Wilton [3]
followed the results proposed by Churchill and Surprenant, and investigated customer
satisfaction formation. Oliver proposed a model that expresses consumer satisfaction as a
function of expectation and expectancy disconfirmation. Prior research has identified and
validated many elements of trustworthiness, such as ability, benevolence, and integrity [Lee &
Turban 2001; Manes 1997; Van Slyke et al. 2004].

Effective website design includes navigation capability or visual appeal of the website (Cyr,
2008). Liu et al. [1997] examined the web sites of Fortune 500 companies to identify how they
are using the web for interacting with their customers. Ho [1997] examined 1800 websites from
various industries across several countries. Hoffman et al. [1996] created six categories for
classifying commercial web sites: online storefront, Internet presence, content, mall, incentive
site, and search agent. Others classify online shopping stores as superstores, promotional stores,
sales stores, one-page stores, and product listings [Spiller & Lohse, 1997]. Kalakota and
Whinston [1996] define a security threat as a circumstance, condition, or event with the potential
to cause economic hardship to data or network resources in the form of destruction, disclosure,
modification of data, denial of service, and/or fraud, waste, and abuse. Navigation, product
information, and site design are critical to e-satisfaction [Szymanski & Hise 2000]. Thus, a key
to building a usable Website is to create good links and navigation mechanisms Mannix 1999;
Radosevich 1997). Cyr (2008) examined characteristics of culture and design, which are
information design, navigation design and visual design, as antecedents to website trust, website
satisfaction and e-loyalty in a sample of three countries which are Canada, Germany and China.

Christy and Matthew (2005) illustrated security as the websites ability in protecting consumer
personal information collected from its electronic transactions from the unauthorized use of
disclosure. Consumers concern about the security, liability and privacy of the online website
(Gefen, 2000). According to the prior research (Elliot & Fowell, 2000; Szymanski & Hise,
2000), as perception of security risk decreases, satisfaction with the information service of online
stores is expected to increase. In other words, strong security attribute does increase the degree
of customer satisfaction. In the study conducted by Christian and France (2005), they identified
three categories of factors as keys to influence e-satisfaction in which including technology,
shopping, and individual product factors. Kateranttanakul (2002) argued that the reliability of
website content facilitates consumers to perceive lower risks, better justifications for their
decisions and ease in reaching the optimal decisions, and in turn affects customer satisfaction
and intention to purchase online.

Online shoppers expect websites to protect personal data, provide for secure payment, and
maintain the privacy of online communication (Franzak et al., 2001).Cox and Dale (2001)
suggested that without a quality management approach that guarantees quality from its systems,
staff and suppliers, a business will not be able to deliver the appropriate level of service quality
to satisfy its customers. The study conducted by Christian and France (2005) through a conjoint
analysis of consumer preferences based on data collected from 188 young consumers reveals that
the three most important attributes to consumers for online satisfaction are privacy (technology
factor), merchandising (product factor), and convenience (shopping factor). Szymanski and Hise
(2000) indicated that wider assortment of products may be attractive to customers and e-
satisfaction would be more positive when online stores offer superior product assortments.
Doll and Torkzadeh (1988) developed a measure that includes content, accuracy, format and
timeliness of system output. Delivery is the amount of time necessary for the package to go from
the distribution center to the customers door. Internet shopping experiences are heavily relied on
the information published on the website, as well as the quality of the system (Chen and Wells
1999, Janda et al. 2002, Szymanski and Hise 2000, Wolfinbarger and Gilly 2001). Turban and
Gehrke (2000) urged that the quality of the web content determines whether potential customers
will be attracted to or driven away from the website. Janda et al. Information quality and system
quality, representing semantic level and technical level respectively, are postulated as two key
antecedents of user satisfaction (DeLone and McLean 1992).

Objective of the study

To study the determinants related to Youth Perception towards online shopping.

Research Methodology
Effective website design includes navigation capability or visual appeal of the website (Cyr,
2008). The population for this study was Youth of Indore. Those youth of Indore was considered
who use online shopping. Sample size for this study was 170 but 13 were discarded and only 157
respondents was taken into consideration. Primary data was collected by using closed end
questionnaire. This questionnaire consist of two section, section A and section B. Section A,
included the demographic profile of the respondent, which includes gender, age, qualification
and occupation of the respondents. Section B, include 16 statements which were measured by
five point Likert scale ranging from strongly disagree to strongly agree.

Reliability

Reliability is accessed by determing the proportion of systematic variation in a scale. This is

done by determing the association between scores obtained from different administrations of the
scale. If the association is high, the scale yields consistent results and is therefore reliable.
Approaches for assessing reliability the test-reset, alternative forms, and internal consistency
methods. Reliability can be of three types test-retest reliability, internal consistency reliability
and split-half reliability. In this research internal consistency reliability has been used.

Table 1 : Realiability

Reliability Statistics

Cronbach's
Alpha N of Items

.723 16

The Reliability for all the 16 items is .723 which is high means the scale is reliable. The
reliability of each factor was expected by computing its Cronbachs alpha.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

.630
Adequacy.
Bartlett's Test of Approx. Chi-Square 1.055E3
Sphericity Df 120

Sig. .000

KMO (Kaiser-Meyer Olkin Measure of Sampling Adequacy). This measure will tell us that
variables included in the study having a common variance. High value of KMO that is between
0.5 and 1 indicates the appropriateness of the factor analysis for the data in hand.
For Bartletts test of Sphercity the value less than 0.05 indicates that there exists a significant
relationship among the variables taken for the factor analysis.
Factor analysis was appropriate because the value of KMO is 0.630 (between 0.5 and 1.0) and
the result of Bartletts Test of Sphericity showed that the value of Approx. The value of Sig is
0.000 (which is less than 0.05) in which indicated that the data are suitable for data analysis
(Xue, 2006). df = 120.

Once it has been determined that factor analysis is suitable for analyzing the data, an appropriate
method must be selected. The approach used to derive the weights or factor score coefficients
differentiates the various methods of factor analysis. The two basic approaches are principle
components analysis and common factor analysis.

In principal components analysis, the total variance in the data is considered. The diagonal of the
correlation matrix consists of unities, and full variance is brought into the factor matrix. Principal
components analysis is recommended when the primary concern is to determine the minimum
number of factors that will account for maximum variance in the data for use in subsequent
multivariate analysis. The factors are called principal components.

In common factor analysis, the factors are estimated based only on the common variance.

Table 4.10 : Five factors identified by Principal components factor analysis

Sorce : Developed by this research.

Variables Items Cranachs alpha Factor

Loading
Q3. Website Color Combination is .607
good.
Q4. Website content is relevant. .480
Q.5 Website product display .749 .604
properly.
Factor 1 ( Web Q6. Website has correct product .883
Portal Quality) Specifications (size, color etc)
Q7. Website Delivered me exactly .822
what I order.
 Q1. Website is easy to navigate. .822
Q2. Website layout is attractive. .800 .708
Factor 2 ( Web Q15. Website has necessary required .840
Portal Ease of Use) certification (Versign)

Q9. Website provide easy .767

replacement of defective products.
Factor 3 (Security Q10. Website has cash back policy .684 .777
and other Policy) against defective products.
Q14. Website provides secured .648
transaction.

Q8. Website delivered product on .710 .742

time.
Factor 4 (Clear Q11. Website provides different .832
Payment and payment methods.
Delivery)

Q12. Website provide after sales .542 .870

service on the product.
Factor 5 (Pre and Q13. Website provides trail facility .545
Post Sales Services) before purchasing the product.

Factor 6 (Trust on Q16. I am confident my personal .953

Web portal) information is not misused.

Web Portal Quality This means Website Color Combination, Website content, Website product
display, Website Specifications in size, color etc and Website Delivery.
Web Portal Ease of Use This means that Website is easy to navigate, Website layout is
attractive, and Website has necessary required certification (Versign).

Security and other Policy Website has cash back policy against defective products and also
Website provides secured transaction.

Clear Payment and Delivery Website delivered product on time and also provides different
payment methods.

Trust on Web portal This shows that customer is confident that his personal information is not
misused.

Pre and Post Sales Services Website provides trail facility before purchasing the product.

Conclusion

This research identified six factors Web portal Quality, Web portal easr of use, Security and
other policy, Clear Payment and Delivery, Pre and Post Sales Services,Trust on Web portal, .
All the six factors have given label YPWP (Youth Perception for Web portal). The total % of
Variance is 74.
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