Online Purchasing Behaviour and Effect on Retailers During COVID
19 Rise of Online Market During COVID 19
Amal Anil Kumar, Lijo M Thomas, Rohan Thomas*, Sujith S, Dr. Sudeep B Chandramana
Department of Management Studies
Mar Athanasios College for Advanced Studies Tiruvalla (MACFAST),
Kerala, India- 689101
*Email: [email protected]
Abstract: Nowadays Consumers buy goods or services directly from a seller over the
Internet. Online Shopping is a form of Electronic commerce (E-commerce) that provides both
the Organisations and Consumers with many options to choose from. On one hand
Consumers have access to wide range of products and the comfort to shop from home while
on the other hand Organisations can cater to different markets at a very low cost. With the aid
of the Internet, the entire world is at our fingertips. World has become a Global village. There
has been a tremendous rise in the number of internet users. Internet has revolutionized the
outlook and mode of living. Various technologies like smartphones, laptops, tablets have
stimulated the Consumers to go for Online shopping. Customers favour a variety of well-
known websites for their online purchasing. In fact, many of the organizations are now
investing a lot in order to make their websites user-friendly. This study identifies the key
factors that influence online purchasing behaviour of consumers in India and more
specifically during and after Covid-19 pandemic in central Travancore region. Both the
primary and secondary sources of data were used.
Keywords: Online purchasing, Behaviour of consumers, Retailers, COVID 19
Introduction
Needless to state, Covid-19 has had a significant impact on Indian small businesses
(retailers). However, it has had an impact on the Indian labour market on a national and
worldwide level in addition to retailers. In contrast to their "industry peers," the micro and
small enterprises, large corporations, institutions, and conglomerates, remain only marginally
impacted. Ninety percent of respondents agree that the government should shift its focus to
encouraging domestic production of critical commodities in place of imports after Indian Inc.
introduced the "Atmanirbhar Bharat" and banned certain Chinese items. For instance,
homegrown companies have asked for higher import taxes on items like basic chrome
sulphate and sodium sulphide, which are used to treat leather, making it more difficult and
expensive for Indian distributors, dealers, and importers. who had formerly imported such
foreign goods. Here, a number of enterprises are both winning and losing at the same time.
The distributors and importers of these chemicals, for instance, would suffer a loss and would
now need to switch to Indian makers of the same chemicals. The manufacturing of chemicals
in India is flourishing in this area. Distributors, retailers, wholesalers, and resellers from a
variety of businesses would simultaneously make and lose money and be on the lookout for
"new manufacturers." Opportunities are thus created for Indian manufacturing firms. The
Distributor's Discretion on Manufacturer Matrix can be used to address the issue of "Which
manufacturer to choose?" for middlemen. Using the matrix, distributors, intermediaries,
agents, retailers, wholesalers, and others can select the best manufacturer based on cost and
marketability, in turn switching to Indian brands is more practical, understandable, and
efficient.
Online shopping has become extremely popular recently, largely because people find it handy
and easy to purchase from the comfort of their home or workplace and are relieved of the
hassle of travelling from store to store in quest of their desired goods.
Online shopping, often known as e-retail or e-shopping, is a type of e-commerce that enables
users to purchase goods and services directly from a virtual store via the internet. The top
online retailers in India right now are Amazon, Flipkart, Snapdeal, Myntra, and others.
Selling products and services to customers through a variety of distribution channels is
known as retail. Retail establishments might be enormous or small, but they all generally
follow the same "buying to sale" model. The most fundamental kind of commerce, retail has
existed since the dawn of humanity.
Literature Review
Some of the research works that came across during the study are as follows:
• Anthony D. Miyazakiand Ana Fernandez (2001)
A report on “Consumer perceptions of privacy and security risks for online shopping”
issued in “Journal of Consumer Affairs” volume 35, issue 1, pages 27– 44, 2001
Information security and privacy have been identified by government and business
organisations as important barriers to the growth of consumer-related e-commerce. Both new
and seasoned users of internet technology have been found to have problems with risk
perceptions related to privacy and security on the internet. This study looks at how customers
with different levels of Internet experience perceive risk and how it affects their online
shopping behaviour. The findings support the existence of correlations between customers'
levels of Internet experience, their use of alternative distant purchase channels (such as phone
and mail order), their perception of the hazards associated with online shopping, and their
online shopping behaviour. The implications for consumer welfare and internet commerce are
examined.
• Snehal Chincholkar (2016)
A study on "Consumer Behaviour Toward Online Grocery Retail Store "Localbanya.co
m" in Mumbai Region".
The primary goal of the study was to determine how consumers behave towards a particular
retailer of groceries. The study included 163 respondents from Mumbai and its surrounding
areas as its sample size. Based on the data gathered, it was found that just 57 of the 163
respondents knew about localbaniya.com and had made at least one purchase there. Cash on
delivery and debit cards are the most popular forms of payment when making purchases
online. The researcher draws the conclusion from data analysis that gradually, our typical
method of food shopping may undergo a significant change. The businesses must put in a lot
of effort to improve their solutions for marketing and distribution to get beyond grocery e-
challenges. retailing's When it comes to grocery e-retailing, Tier-I cities in India are the first
to need to be conquered before Tier-II and Tier-III cities can be reached.
• Saban Kumar K.C, Arun Kumar Timalsina (2016)
A study on "Consumer Attitudes Toward Online Grocery Shopping in the Kathmandu
Valley."
The primary goal of the study was to gauge Kathmandu residents' perceptions toward online
purchasing. The study used 100 respondents from Kathmandu, Lalitpur, and Bhaktapur as its
sample size. The Statistical Package for Social Sciences (SPSS) was used by the researchers
to analyse the data. The data analysis led the researchers to the conclusion that 86% of
respondents, or the majority, were aware of online purchasing. Similar to this, 89% of
respondents expressed positivity toward grocery shopping online, while the remaining
respondents expressed negativity. Additionally, the results show that 52% of respondents
were aware of the existence of internet portals. Freshness and timing of delivery received
greater weight, consider the cost and payment methods while purchasing fruits and veggies
online.
Objectives of Study
The research has been conducted with the following objectives:
• To study the effect on offer of retail stores due to the advent of e-stores.
• To analyse the preference of customers regarding traditional or online market.
• To analyse the modification of business practises to satisfy customers.
• To study the perception of customers about online market.
• To find out the customer buying behaviour.
Research Methodology
The study is designed as an exploratory one based on sampling methods. Both primary and
secondary data have been used in this study.
(i) Primary Data: The primary data has been collected through structured questionnaire.
(ii) Secondary Data: The secondary data used for the study has been collected from different
sources of literature like journals, magazines, textbooks, and internet.
(iii) Sample Size: In this survey the sample size is 50. The sampling technique used for the
study is convenience sampling. Convenience sampling is a type of non-probability sampling
which involves the sample being drawn from that part of the population which is close to
hand.
Data Analysis and Interpretation
Table 1.1 Age of the respondents
PARTICULARS RESPONDENTS PERCENTAGE (%)
Under 20 2 4
21-25 42 84
25-30 - -
Above 30 6 12
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.1 and fig 1.1 shows the percentage of respondents age limit. The study
shows that 84% of the respondents fall under age limit of 21-25,12% fall under age
limit of Above 30, 4% fall under age of 20 and 0 falls under the age limit of 25-30.
Fig 1.1 Age of the respondents
(Source-Table:1.1)
Table 1.2 Gender of the respondents
PARTICULARS RESPONDENTS PERCENTAGE (%)
Male 23 46
Female 27 54
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.2 and fig 1.2 shows the percentage of respondent’s gender limit. The study shows
that 54% of the respondents are female and 46% of the respondents are male.
Fig 1.2 Gender of the respondents
(Source-Table:1.2)
Table 1.3 Marital Status of the respondents
PARTICULARS RESPONDENTS PERCENTAGE (%)
Single 43 86
Married 7 14
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.3 and fig 1.3 shows the percentage of respondent’s gender limit. The study shows
that 86% of the respondents are unmarried and 14% of the respondents are married.
Fig 1.3 Marital Status
(Source-Table:1.3)
Table 1.4 Education of the respondents
PARTICULARS RESPONDENTS PERCENTAGE (%)
SSLC/10 - -
12 3 6
DEGREE(UG) 19 38
PG 25 50
OTHERS 3 6
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.4 and fig 1.4 shows the percentage of education of the respondents. The study shows
that 50% of the respondents fall under the category of PG 38% of the respondent fall under
the category of Degree (UG),and 6% respondent fall under the category of 12th and others.
Fig 1.4 Education of the respondents
(Source-Table:1.4)
Table 1.5 Traditional or Online market preference of the respondents
PARTICULARS RESPONDENTS PERCENTAGE (%)
Yes 46 92
No 4 8
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.5 and fig 1.5 shows the percentage of respondents preferring traditional or online
market. The study shows that 92% of the respondents prefer buying products from the
traditional market/local market and only 8% prefer online market.
Fig 1.5 Traditional or Online market preference of the respondents
50
46
45
40
35
30
25
20
15
10
4
0
Traditional Market Online Market
(Source-Table:1.5)
Table 1.6 Importance of physical touch while purchasing preference of the respondents
PARTICULARS RESPONDENTS PERCENTAGE (%)
Yes 22 44
No 6 12
Maybe 22 44
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.6 and fig 1.6 shows the percentage of respondents who still thinks that physical touch
is important while purchasing a product. The study shows that 44% of the respondents still
prefer physical touch i.e., they say that physical touch is important before buying the product
and some still say’s it might be important and only 12% of the respondents say it is not
important.
Fig 1.6 Importance of physical touch while purchasing preference of the respondents
Maybe
No
Yes
0 5 10 15 20 25
(Source-Table:1.6)
Table 1.7 Safer form of shopping
PARTICULARS RESPONDENTS PERCENTAGE (%)
Online shopping 32 64
Retailers selling 18 36
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.7 and fig 1.7 shows the percentage of respondents who prefer safer form of shopping
during Covid19 situation. The study shows that 64% of the respondents prefer Online
shopping and 36% still prefers Direct selling.
Fig 1.7 Safer form of shopping
(Source-Table:1.7)
Table 1.8 Preference of online shopping over traditional shopping
PARTICULARS RESPONDENTS PERCENTAGE (%)
Agree 21 42
Disagree 3 6
Maybe 26 52
Total 101 100
Source: Primary Data
INTERPRETATION
Table 1.8 and fig 1.8 shows the percentage of respondents who preferred over traditional
shopping in future. The study shows that 52% of the respondents says maybe to the statement
of will online shopping be preferred over traditional shopping in future where as 42% agree
but, 6% thinks it might not happen.
Fig 1.8 Preference of online shopping over traditional shopping
Agree Disagree Maybe
30
25
20
15
10
0
Agree Disagree Maybe
(Source-Table:1.8)
Table 1.9 On-time delivery while shopping online
PARTICULARS RESPONDENTS PERCENTAGE (%)
Agree 22 44
Disagree 3 6
Neutral 25 50
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.9 and fig 1.9 shows the percentage of respondents whether they get on-time delivery
while shopping online. The study shows that 50% of the respondents says neutral and 44%
agree and 6% disagree as they say that there is delay in delivery of product.
Fig 1.9 On-time delivery while shopping online
(Source-Table:1.9)
Table 1.10 Time Saving
PARTICULARS RESPONDENTS PERCENTAGE (%)
Agree 40 80
Disagree 10 20
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.10 and fig 1.10 shows whether respondents think online shopping saves time. The
study shows 80% agree and 20% disagree.
Fig 1.10 Time Saving
(Source-Table:1.10)
Table 1.11 Price Comparison between online and offline shops
PARTICULARS RESPONDENTS PERCENTAGE (%)
Agree 40 80
Disagree 1 2
Same 9 18
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.11 and fig 1.11 shows whether respondents find online prices to be low as compared
to offline shoppes. The study shows 80% agrees and 18% says same and only 2%
respondents says that online prices does not come to low as compared to offline shoppes.
Fig 1.11 Price Comparison between online and offline shops
(Source-Table:1.11)
Table 1.12 Reason for preferring online shopping
PARTICULARS RESPONDENTS PERCENTAGE (%)
Low price compared to 8 16
offline stores
Fast delivery - -
Wide range of products 13 26
All of the above 29 58
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.12 and fig 1.12 shows whether respondents find online prices to be low as compared
to offline shoppes. The study shows 58% agree with all of the above statement mentioned
above and 26% says there is a wide range of products in online shopping where as 16% says
there is a low price when compared to offline stores.
Fig 1.12 Reason for preferring online shopping
(Source-Table:1.12)
Table 1.13 Preferred payment option
PARTICULARS RESPONDENTS PERCENTAGE (%)
Cash on delivery 34 68
Debit/Credit Card 3 6
UPI Payment 13 26
Total 50 100
Source: Primary Data
INTERPRETATION
Table 1.13 and fig 1.13 shows the percentage of respondents who prefer payment while
shopping online. The study shows that 68% of the respondents prefer Cash on delivery while
26% prefer UPI payment and only 6% prefer Debit or Credit card payment.
Fig 1.13 Preferred payment option
(Source-Table:1.13)
Retailers Suffer the Most
Despite an increase in internet buying, the retail industry has been particularly badly
impacted. Large retailers including Uniqlo, Adidas, Apple, as well as small and medium-
sized merchants, have closed their doors. Businesses who are being forced to close their
physical locations are offering discounts or free shipping in an effort to boost their online
sales. Due to the closing of physical stores, businesses without a website are urged to
consider selling through social media platforms like Facebook, Instagram, WhatsApp, etc.
These in-app purchases have the benefit of keeping users on the same platform to complete a
search or purchase, reducing the risk of losing users. Free refunds for first-time customers in
the fashion business could be beneficial where the profits are enormous. As purchasers are
unsure about sizing and pricing, it lowers the barrier to purchase and boosts trust in a brand.
The same is true for businesses in the furniture and decoration industries.
Findings
Consumer time and expenditure are steadily shifting more toward e-commerce. Consumers
are motivated to purchase online for a variety of reasons, with pricing, shopping convenience,
and the availability of a large selection of goods being the main ones. The following are the
study's main conclusions:
a) Over the past few years, merchants' turnover and profit margin have significantly reduced.
b) Nowadays, more retail stores are involved in services relating to consumer happiness.
c) Despite their limited capacity, shops still make an effort to hold onto the greatest items in
order to drive up sales.
d) Customers are observed to do window shopping at an alarmingly greater rate in order to
examine the product in person before making a discounted online purchase.
e) Retailers are now beginning to provide their consumers door-to-door delivery of a variety
of their products.
f) As the convenience and product selection become comparatively more essential as a
deciding factor for online buying, customers become more at ease with the experience of
making purchases online.
Conclusion
The impact of COVID-19 has affected the life style of people and purchasing power from
retail stores or shopping to online shopping within the span of one year. Even though online
shopping is currently preferred by the customer it isn’t perfect and has several draws back,
such as delay in delivery. During this research we also conclude that online shopping prices
are much lesser than traditional market thus attracts more customers.
Following the COVID-19 epidemic, the e-commerce market has grown due to a number of
factors, including a strong and consistent increase in internet users, rising online shopping
awareness, an increase in product launches, low prices because of bulk purchases, and so
forth. The worldwide e-commerce market is also expanding as a result of an increase in the
availability of exclusive products, lower costs for goods due to direct distribution channels,
and economies of scale. In addition, it is anticipated that social withdrawal and staying in
after the COVID-19 epidemic will further encourage customers to shop online. The e-
commerce sector, however, may be impacted by supply chain problems and ambiguous
consumer demand. Large retailers like Walmart may also be impacted by the COVID-19
epidemic, which are seeing a decline in casual shopping, a disruption in the supply chain,
and an increase in purchases of necessities
like groceries and toiletries.
References
Studies and Reports:
Kathleen Seiders, Constantine Simonides, Douglas J Tigert: “The impact of supercenters
on traditional food retailers in four markets” in International Journal of Retail & Distribution
Management”, ISSN: 0959-0552. Volume 42, pg. 32-46.
• India Today Magazine- Date: 18.05.2020: The Saviours
• The Indian Express- Date 30.08.2000: Fears of contraction, GDP data today will mark
Covid effect & phase of recession.
• The Hindu- Date:06.02.2021: New questions: On COVID-19 infecting one-fifth of Indian
population.
Website:
https://retail.economictimes.indiatimes.com/re-tales/impact-of-covid-19-on-online-shopping-
in-india/4115 25/03/2020,13:08
https://www.researchgate.net/publication/344140421_Title_Study_of_impact_of_coronavirus
_pandemic_on_small_and_medium_enterprises_SME's_in_India 20/11/2020,16:29
