Buying Patterns in India
Content
E-Commerce: User Experience and buying patterns in Indian context
Abhay Vyas National Institute of Design Abstract India is a fascinating country where people of many different communities and religions live. The rapid change of the ecommerce in the past few years different buying patterns and choices have emerged for different age group of consumers. These patterns have been measured and collected by various Indian ecommerce sites to understand and develop offline consumer experience on online shopping sites. This research paper presents the groundwork with introduction of recent offline as well as online buying pattern and experience of different age group of people. This is followed by their general perceptions and preferences of the online shopping including product search and purchase. Each of these user experience statement will be compared to information accumulated from survey questions and open-ended discussions with a different group of people. It will also highlight the comparison of offline and online shopping experience with respect to different buying patterns. Introduction E-commerce has become a buzzword for business over the past few years in India, with increased awareness about the use of computer and communication technologies to simplify business procedures and increased efficiency. It provides core business process of buying, selling goods, services and information over the Internet. India is the worlds 4th highest Internet users country with the growth of 4.1% but the no. of online shopping user is just 5%. There are several online shopping websites in India that offer vast shopping experience. There are large no.of e-commerce websites which look like all US e-commerce sites that’s why these sites are not that much effective for Indian consumer. People do what ever they want they don’t want to take any pain and prefer offline or easy shopping. Objective This research is regarding what makes people buy? Is it the price, quality, website interface, motivation or some newly
launched product. What makes people to decide whether they want to open up their wallet and hand over the money? In some cases they don’t want to spend, so what's the difference between those who buy and those who don't? What do they do before buying that product. Online buying trends, patterns and preference. There past and current experience and what are the needs on Indian e- commerce sites. Implementation of research paper The goal is to increase business by making it easier for customer to shop by providing some basic needs on the e-commerce site. Reducing difficulties in purchasing items online. System interaction with customers to make them feel confident on these sites with friendly, easily accessible interface and by giving them real world environment experience. This paper has analyzed some of the challenges and opportunities of ecommerce Methodology Initially as a pilot study I spoke to different background people, with some open-ended question. This was a small-scale, preliminary study before the main research with 6 persons. All interviews were conducted on one-on-one basis and ranged from 20 to 30
minutes. The subjects, in the age group of 20 to 30 years, with different background, 3 of them were employed and 3 unemployed. This group was divided into 2 subgroups, one who shops online and the other who doesn’t, in order to check the Feasibility or whether the research is going in the right direction? On the basis of pilot study a survey was conducted online through “www.kwiksurvey.com” online panel. Eleven multiple choice questions were prepared for the survey. Some of them were open ended to let participants express their opinions, 63 Internet users answered this survey except the users who were interviewed during pilot study. The participants were Internet users of age group 20 to 60. The objective of the survey was to look at the different consumer group and their behavior. To know what exactly they do on online shopping site, their past experience , how do they interact and what are their needs on e-commerce sites. Questions to the participants were focused around their experience with e-commerce sites. The survey made it easy to know the inconvenience on Indian ecommerce sites and divided the subjects into 3 groups, teenagers, working women and 20-32 age group technology savvy people.
Result and discussion The survey was focused on electronic goods only. “More than 95% customers in India who have an Internet connection but buy products offline after having investigated prices and details online.” [According to P.T. Joseph writer of E-commerce An Indian perspective] 63 People participated in this survey. In which 53 were between age group 20 to 30, 6 were between 40-50, 2 were under 20 and 2 were above 50. Out of 63 participants 85% search Google for product information, and 15% still use traditional method (enquiry at brand store, shops, malls, retail outlet). Before buying products actually from shop they first prefer getting reviews from online sites. According to pilot study browsing information on online shopping site is fun, fast and easy! But what people do on these sites? Do they shop online or search information before buying? The results show that 58 people browse information and only 5 people actually buy product. Although major security issues verify all Indian ecommerce sites like verified by visa, VeriSign Secured, Master Care secure code and PCI DSV 1.2. Which indicates that the
shopper is on a secure page and that the website has undergone extensive identity authentication. But in terms of security, user trust is more important. Where 30% people don’t know what are security issues. A prepaid debit card is useful for its ability to transact payments online over the Internet. But still there are 27% users who are not aware that they can shop online with their debit card. Rich in text, image, tools, plus customer service information as it is a destination where consumers look for desired in-depth content. 81% participants realize through their past experience that product picture is different form the actual picture displayed. During the pilot study there were few Participants who wanted to buy products but couldn’t while they were on online shopping sites. All these users participated in detail study again. And left their comments – • Didn’t get clear picture of product • Had no credit card at that time • Not face to face transaction • Wanted the feel of the product, size, weight, finish etc. • Not sure about secure transaction
Some more comments given by these participants were • Need fast delivery service • Do they bargain? • Offers and Discounts Services • Complete 3D view of Products Understanding Indian market To establish trust and confidence among Indian consumers and before starting online business in India we need to understand Indian market. E-commerce environment Many Indian e-commerce sites are not at all welcoming. The home page doesn’t give that feeling which we get when we enter into a local shop. A Punjabi buys stuff from Punjabi’s shop, a north Indian buys stuff from a north Indian shop, a south Indian prefers a south Indian shop. People enter into any shop and adjust them according to the current environment and feel good to shop there. This reminds me of the Google home page idea it used to open in different language welcoming note for each state. Indian consumer look for festive offers India is a country of festival, which has diverse customs and traditions. With the biggest Indian festival just round the corner, the
consumer is flooded with attractive offers from various brands to woo him.
The choices in Offline shopping during diwali at Big bazaar.
Indian working housewives look for festival offer and buy products during occasions only. Online shopping sites provide offers on major festivals like Holi and Diwali but what about other local festivals. There are more than 365 festivals in a year and local shopkeeper attracts their customers by giving them some special discounts on special occasion, which results in increased sales. Decision-making while selecting product Product picture is the most important thing on e-commerce sites, which helps customer to decide whether he should buy that product or not? User wants to look, touch and feel the desired product which is not possible online. On the other hand Internet connection speed is very important for ecommerce site so that he can browse the site frequently.
Generally it takes too much time to update a single image to view. Which takes too much time to decide and forces customer to go for offline shopping. One to one shopping People like to share their thoughts to other i.e. what they are buying and want to take their near and dear ones’ opinion. After reviewing the product details and ratings most of user send that product link to their friend for feedback. As reviews and rating are there but still people want to involve their friends, family members and relatives to help them in better deal where ecommerce sites are lacking in social shopping. People look for better services People want a good service, guarantee as well as warranty even after long time and suggest others for the good service products only. It shouldn’t be like “pay and loose”. 24 hrs services back up should be available. “Salesman of the year” movie is a good example of service after product delivery, said by a participant. HCL recently launched their ME laptop with a live help chat button on its laptop to help their customer whenever they are in need of it. Though in India people do not use the internet much but still HCL has tried to give service satisfaction by putting
this button thus giving the customer mental satisfaction that there will always be a service to attend to them. Value for money Survey result shows that Indian customer love bargaining on street shops as well as branded stores. Aashish, Aditya and Yogesh who recently bought Mac book pro from apple store. They bargained and got Sennheiser head- phones with laptop worth Rs. 45,00. After that they recommended more people to buy from I-store only. They said “why will we buy it from other stores if we are getting value for our money here.” “People don’t buy our services, products or ideas. They buy how they imagine using them will make them feel,” said by Apple Store manager. Age group 20 to 30 people never want things according to need they just want sophisticated things as per their demand with more features. The fastest way to sell is to honestly help people see how it’s really in their interests. Then they will act quickly. Currently there is no relationship with a consumer who is already using the same products for which other are enquiring. Once you buy product none of them will ask you how it’s working which can help others to
make decision for same product. People browse a lot before buying product Wide variety of products are available online, people get detailed information of the product and then start comparison. During the task people selected some products from 2 or 3 sites opened them into different tabs and then kept switching the tabs. After they choose a product they put it on a virtual cart on the site. After which they can’t compare it again. Some people change their mind even after putting products into a cart. Fear of misuse of personal information Survey results show that there are 27% people who don’t know what the security issues are? They don’t want to provide their personal information over Internet. User shared their personal experience i.e. after choosing the credit card option. User provides his credit card number, name, expiry and CVV (very confidential stuff), and transaction turns down to “sorry your payment did not go through please try again” with one more pay now button. Without thinking user hits the ‘Pay Now’ button a second time in the hope of making any corrections to his transaction. Next screen shows “Your session has expired!” with some error message. They take all PERSONAL information and now his transaction does not go through. So what happens to his personal information? Somebody could potentially misuse it? This fearful experience is taking people to offline shopping.
Secure sign on online shopping site of indiatimesshopping.com
The above image is showing that this page is secure and your details will be confidential. Design recommendation for Indian e-commerce sites However, to facilitate e-commerce growth in India. The relatively underdeveloped information infrastructure must be improved.
Poster showing customer’s expression how they feel while buying.
• Welcoming home page for each and every state. • Different Offers on different festivals. • Complete 3D view of product. • Involvement of friends and relatives social site experience. • Bargains on online shopping sites. • Online relationship with consumers. • Product comparison between other sites. • Provide secure password on mobile before confirming transaction by e-commerce site. • Provide delivery tracking. • Educate or provide information regarding the security measures taken in many of these websites
platforms on the experience that they providing. Here, I have introduced some real world physical shopping experience with buying patterns and trends in Indian context, which can be implemented on online shopping sites. Which will give physical shopping feel on these sites to improve e-commerce business. This research has provided a contribution, by providing insight into the customer’s perception of e- commerce experience. Survey Questionnaire 1. Have you ever purchased a product via mail order (telephone / fax)? 2. Mediums you use for research or getting information prior to purchasing product? 3.What do you do on online shopping sites? 4. What do you do with the information you find? 5. Do you know security issues on online shopping sites? 6. Do you know you can transact online with your debit card for Indian site? 7. Do you trust online product picture? 8. If above answer is No! Then select? 9. What stopped you for purchasing when you were on online shopping site? 10. Would you like to make any
Conclusion Based on the information collected from this small sample study shows that in India shopping is an experience itself. People look forward to it as an opportunity to get out of their homes and interact with other people. As we can see the malls and the supermarkets are only becoming famous using this fact. Thus there is no way that they can compete with the offline
comments or provide any feedback how to make easy online transaction? Reference [1] E-commerce An Indian perspective by P T Joseph [2] Spencer Johnson The one minute sales person [3] The call of the mall how we shop Paco Underhill [4] E commerce usability for UK high street retailer 2007 [5] Social Commerce Mode 2.0 ambespielcase H & M [6] http://shopping.rediff.com/ [7] http://compareindia.in.com/ [8] http://ebay.co.in/ [9] http://www.alibaba.com/ [10] The why of buy [11] http://www.internetworld stats.com/top20.htm Surveylink http://www.kwiksurveys.com/onlin esurvey.php?surveyID=KKDLGN _b 8d43ccf
Abhay Vyas National Institute of Design Abstract India is a fascinating country where people of many different communities and religions live. The rapid change of the ecommerce in the past few years different buying patterns and choices have emerged for different age group of consumers. These patterns have been measured and collected by various Indian ecommerce sites to understand and develop offline consumer experience on online shopping sites. This research paper presents the groundwork with introduction of recent offline as well as online buying pattern and experience of different age group of people. This is followed by their general perceptions and preferences of the online shopping including product search and purchase. Each of these user experience statement will be compared to information accumulated from survey questions and open-ended discussions with a different group of people. It will also highlight the comparison of offline and online shopping experience with respect to different buying patterns. Introduction E-commerce has become a buzzword for business over the past few years in India, with increased awareness about the use of computer and communication technologies to simplify business procedures and increased efficiency. It provides core business process of buying, selling goods, services and information over the Internet. India is the worlds 4th highest Internet users country with the growth of 4.1% but the no. of online shopping user is just 5%. There are several online shopping websites in India that offer vast shopping experience. There are large no.of e-commerce websites which look like all US e-commerce sites that’s why these sites are not that much effective for Indian consumer. People do what ever they want they don’t want to take any pain and prefer offline or easy shopping. Objective This research is regarding what makes people buy? Is it the price, quality, website interface, motivation or some newly
launched product. What makes people to decide whether they want to open up their wallet and hand over the money? In some cases they don’t want to spend, so what's the difference between those who buy and those who don't? What do they do before buying that product. Online buying trends, patterns and preference. There past and current experience and what are the needs on Indian e- commerce sites. Implementation of research paper The goal is to increase business by making it easier for customer to shop by providing some basic needs on the e-commerce site. Reducing difficulties in purchasing items online. System interaction with customers to make them feel confident on these sites with friendly, easily accessible interface and by giving them real world environment experience. This paper has analyzed some of the challenges and opportunities of ecommerce Methodology Initially as a pilot study I spoke to different background people, with some open-ended question. This was a small-scale, preliminary study before the main research with 6 persons. All interviews were conducted on one-on-one basis and ranged from 20 to 30
minutes. The subjects, in the age group of 20 to 30 years, with different background, 3 of them were employed and 3 unemployed. This group was divided into 2 subgroups, one who shops online and the other who doesn’t, in order to check the Feasibility or whether the research is going in the right direction? On the basis of pilot study a survey was conducted online through “www.kwiksurvey.com” online panel. Eleven multiple choice questions were prepared for the survey. Some of them were open ended to let participants express their opinions, 63 Internet users answered this survey except the users who were interviewed during pilot study. The participants were Internet users of age group 20 to 60. The objective of the survey was to look at the different consumer group and their behavior. To know what exactly they do on online shopping site, their past experience , how do they interact and what are their needs on e-commerce sites. Questions to the participants were focused around their experience with e-commerce sites. The survey made it easy to know the inconvenience on Indian ecommerce sites and divided the subjects into 3 groups, teenagers, working women and 20-32 age group technology savvy people.
Result and discussion The survey was focused on electronic goods only. “More than 95% customers in India who have an Internet connection but buy products offline after having investigated prices and details online.” [According to P.T. Joseph writer of E-commerce An Indian perspective] 63 People participated in this survey. In which 53 were between age group 20 to 30, 6 were between 40-50, 2 were under 20 and 2 were above 50. Out of 63 participants 85% search Google for product information, and 15% still use traditional method (enquiry at brand store, shops, malls, retail outlet). Before buying products actually from shop they first prefer getting reviews from online sites. According to pilot study browsing information on online shopping site is fun, fast and easy! But what people do on these sites? Do they shop online or search information before buying? The results show that 58 people browse information and only 5 people actually buy product. Although major security issues verify all Indian ecommerce sites like verified by visa, VeriSign Secured, Master Care secure code and PCI DSV 1.2. Which indicates that the
shopper is on a secure page and that the website has undergone extensive identity authentication. But in terms of security, user trust is more important. Where 30% people don’t know what are security issues. A prepaid debit card is useful for its ability to transact payments online over the Internet. But still there are 27% users who are not aware that they can shop online with their debit card. Rich in text, image, tools, plus customer service information as it is a destination where consumers look for desired in-depth content. 81% participants realize through their past experience that product picture is different form the actual picture displayed. During the pilot study there were few Participants who wanted to buy products but couldn’t while they were on online shopping sites. All these users participated in detail study again. And left their comments – • Didn’t get clear picture of product • Had no credit card at that time • Not face to face transaction • Wanted the feel of the product, size, weight, finish etc. • Not sure about secure transaction
Some more comments given by these participants were • Need fast delivery service • Do they bargain? • Offers and Discounts Services • Complete 3D view of Products Understanding Indian market To establish trust and confidence among Indian consumers and before starting online business in India we need to understand Indian market. E-commerce environment Many Indian e-commerce sites are not at all welcoming. The home page doesn’t give that feeling which we get when we enter into a local shop. A Punjabi buys stuff from Punjabi’s shop, a north Indian buys stuff from a north Indian shop, a south Indian prefers a south Indian shop. People enter into any shop and adjust them according to the current environment and feel good to shop there. This reminds me of the Google home page idea it used to open in different language welcoming note for each state. Indian consumer look for festive offers India is a country of festival, which has diverse customs and traditions. With the biggest Indian festival just round the corner, the
consumer is flooded with attractive offers from various brands to woo him.
The choices in Offline shopping during diwali at Big bazaar.
Indian working housewives look for festival offer and buy products during occasions only. Online shopping sites provide offers on major festivals like Holi and Diwali but what about other local festivals. There are more than 365 festivals in a year and local shopkeeper attracts their customers by giving them some special discounts on special occasion, which results in increased sales. Decision-making while selecting product Product picture is the most important thing on e-commerce sites, which helps customer to decide whether he should buy that product or not? User wants to look, touch and feel the desired product which is not possible online. On the other hand Internet connection speed is very important for ecommerce site so that he can browse the site frequently.
Generally it takes too much time to update a single image to view. Which takes too much time to decide and forces customer to go for offline shopping. One to one shopping People like to share their thoughts to other i.e. what they are buying and want to take their near and dear ones’ opinion. After reviewing the product details and ratings most of user send that product link to their friend for feedback. As reviews and rating are there but still people want to involve their friends, family members and relatives to help them in better deal where ecommerce sites are lacking in social shopping. People look for better services People want a good service, guarantee as well as warranty even after long time and suggest others for the good service products only. It shouldn’t be like “pay and loose”. 24 hrs services back up should be available. “Salesman of the year” movie is a good example of service after product delivery, said by a participant. HCL recently launched their ME laptop with a live help chat button on its laptop to help their customer whenever they are in need of it. Though in India people do not use the internet much but still HCL has tried to give service satisfaction by putting
this button thus giving the customer mental satisfaction that there will always be a service to attend to them. Value for money Survey result shows that Indian customer love bargaining on street shops as well as branded stores. Aashish, Aditya and Yogesh who recently bought Mac book pro from apple store. They bargained and got Sennheiser head- phones with laptop worth Rs. 45,00. After that they recommended more people to buy from I-store only. They said “why will we buy it from other stores if we are getting value for our money here.” “People don’t buy our services, products or ideas. They buy how they imagine using them will make them feel,” said by Apple Store manager. Age group 20 to 30 people never want things according to need they just want sophisticated things as per their demand with more features. The fastest way to sell is to honestly help people see how it’s really in their interests. Then they will act quickly. Currently there is no relationship with a consumer who is already using the same products for which other are enquiring. Once you buy product none of them will ask you how it’s working which can help others to
make decision for same product. People browse a lot before buying product Wide variety of products are available online, people get detailed information of the product and then start comparison. During the task people selected some products from 2 or 3 sites opened them into different tabs and then kept switching the tabs. After they choose a product they put it on a virtual cart on the site. After which they can’t compare it again. Some people change their mind even after putting products into a cart. Fear of misuse of personal information Survey results show that there are 27% people who don’t know what the security issues are? They don’t want to provide their personal information over Internet. User shared their personal experience i.e. after choosing the credit card option. User provides his credit card number, name, expiry and CVV (very confidential stuff), and transaction turns down to “sorry your payment did not go through please try again” with one more pay now button. Without thinking user hits the ‘Pay Now’ button a second time in the hope of making any corrections to his transaction. Next screen shows “Your session has expired!” with some error message. They take all PERSONAL information and now his transaction does not go through. So what happens to his personal information? Somebody could potentially misuse it? This fearful experience is taking people to offline shopping.
Secure sign on online shopping site of indiatimesshopping.com
The above image is showing that this page is secure and your details will be confidential. Design recommendation for Indian e-commerce sites However, to facilitate e-commerce growth in India. The relatively underdeveloped information infrastructure must be improved.
Poster showing customer’s expression how they feel while buying.
• Welcoming home page for each and every state. • Different Offers on different festivals. • Complete 3D view of product. • Involvement of friends and relatives social site experience. • Bargains on online shopping sites. • Online relationship with consumers. • Product comparison between other sites. • Provide secure password on mobile before confirming transaction by e-commerce site. • Provide delivery tracking. • Educate or provide information regarding the security measures taken in many of these websites
platforms on the experience that they providing. Here, I have introduced some real world physical shopping experience with buying patterns and trends in Indian context, which can be implemented on online shopping sites. Which will give physical shopping feel on these sites to improve e-commerce business. This research has provided a contribution, by providing insight into the customer’s perception of e- commerce experience. Survey Questionnaire 1. Have you ever purchased a product via mail order (telephone / fax)? 2. Mediums you use for research or getting information prior to purchasing product? 3.What do you do on online shopping sites? 4. What do you do with the information you find? 5. Do you know security issues on online shopping sites? 6. Do you know you can transact online with your debit card for Indian site? 7. Do you trust online product picture? 8. If above answer is No! Then select? 9. What stopped you for purchasing when you were on online shopping site? 10. Would you like to make any
Conclusion Based on the information collected from this small sample study shows that in India shopping is an experience itself. People look forward to it as an opportunity to get out of their homes and interact with other people. As we can see the malls and the supermarkets are only becoming famous using this fact. Thus there is no way that they can compete with the offline
comments or provide any feedback how to make easy online transaction? Reference [1] E-commerce An Indian perspective by P T Joseph [2] Spencer Johnson The one minute sales person [3] The call of the mall how we shop Paco Underhill [4] E commerce usability for UK high street retailer 2007 [5] Social Commerce Mode 2.0 ambespielcase H & M [6] http://shopping.rediff.com/ [7] http://compareindia.in.com/ [8] http://ebay.co.in/ [9] http://www.alibaba.com/ [10] The why of buy [11] http://www.internetworld stats.com/top20.htm Surveylink http://www.kwiksurveys.com/onlin esurvey.php?surveyID=KKDLGN _b 8d43ccf
