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- International Journal of Management (IJM)
Volume 9, Issue 3, May–June 2018, pp. 164–171, Article ID: IJM_09_03_016
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=3
Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication
EFFECT OF ONLINE SHOPPING IN RETAIL
BUSINESS OF KERALA- INFLUENCE OF
SMART PHONES
Shabeer V P
PSMO College, Tirurangadi, Kerala
Dr. P V Basheer Ahammed
PSMO College, Tirurangadi, Kerala
ABSTRACT
Online shopping habits among consumers in Kerala have increased in the recent
days as retailers have taken full advantage of opportunities presented by the internet.
More and more retailers are now coming front to set up web stores. Earlier there are
only specialized online shopping sites are doing their business, but now more retailers
are started to set up web stores to serve their customers well. The purpose of this study
was to establish, by means of quantitative analysis, the demographic features of the
online shopping consumers of Kerala and the influence of using smartphones in making
online purchase. This will be helpful for the online companies to plan accordingly. The
study was conducted during 2017-18 on a convenience sample of respondents from
three regions of Kerala.
Key words: E-Shopping; Online Consumers; Web store; Smartphones.
Cite this Article: Arkadiusz Mironko, The Impact of Human Capital and Skill
Availability On Attraction of Foreign Direct Investment (FDI) Into Regions within
Developing Economies, International Journal of Management, 9 (3), 2018, pp. 164–
171.
http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=3
1. INTRODUCTION
The consumers’ choice of retail purchase is usually governed by the variety of goods and
services offered by the retailers. The consumers are influenced by the assortment of various
products, price of the products, shopping experiences and the transactional convenience in
making their retail purchase. It is seen that now a days the life style of people has changed a lot
even in the rural areas. The meaning of shopping also has changed a lot for them. Now shopping
is not just a necessity for the people, but it is a way of their life style. The history of retail
business shows that the way of selling has been changing along with the changes in the life
style of people and the changes in the technology.
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- Shabeer V P and Dr. P V Basheer Ahammed
The fast growing technological developments gave a new face and pace to the modern
world. The advent and popularity of internet, accompanied by the growth of related
technologies, has created tremendous impact on the way of doing business and the lifestyle of
people around the world. The ability of internet to connect people around the world without any
boundaries, provided to the business a new scope and platform for doing their business. The
setting of online stores provides the business and consumers, the facility of buying and selling
goods and services virtually anywhere, 24 hour a day, 7 day a week without any political and
geographical boundaries. Now it is seen that more and more retailers are setting online stores
and consumers are making purchase through these virtual stores.
2. STATEMENT OF THE PROBLEM
In response to the facility and opportunity offered by the internet, many retailers adopted web
sites as part of their marketing activities. All the online shopping companies have their own
mobile app also for promoting their web store. It is seen that, there is a huge trend shift in the
traditional retail purchase among the consumers also. In Kerala, the consumers experience in
online shopping has been made by the researcher for studying the perception towards online
shopping in substitution of traditional brick and mortar retail shop purchase.
3. OBJECTIVE OF THE STUDY
• To analyze the experience and intention of consumers towards online purchase.
• To analyze the demographic differences among the online buyers in Kerala.
• To identify the influence of various devices used in online purchase habits of consumers in
Kerala.
3. METHODOLOGY OF THE STUDY
Data are collected from both primary and secondary sources. Primary data are collected from
the internet users in Kerala. The primary data was collected in three districts of Kerala which
are divided in to three regions namely North, Middle and South as mentioned in the first chapter.
The researcher selected the districts randomly by using lottery method. The selected districts
are; Calicut district from the North region, Trissur from the Centre region and
Thiruvananthapuram from the south region. Primary data’s are collected through questionnaire
and interview methods. A structured online questionnaire was built by using Google form in
correlation with objective of research and hypotheses.
About the secondary data, the concepts regarding consumer behavior and other literature
regarding online shopping were taken from the different reference books, article and journals.
Under the circumstances of unsure total population, the researcher uses the following
formula to calculate the sample size for this research study. The researcher wishes to have a
95% confidence level and 5% confidence interval of the right population of the online shoppers
to calculate the sample size.
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- Effect of Online Shopping In Retail Business of Kerala- Influence of Smart Phones
Sample size = Z2 x (p) x (1-p)/C2
Where:
Z= Z value. (1.96 for 95% confidence level)
P= Percentage picking a choice, expressed as decimal (.5 used for sample size needed)
C= Confidence interval, expressed as decimal
Sample size = 1.962 x (.5) x (1-.5)/.052
= 3.8416 x .25/ .0025
= .9604/ .0025
= 384.16
So the sample size calculated for this research study is rounded off to 384 samples.
The researcher used various statistical tools like percentages, crosstab analysis, Chi- Square
test and weighted average mean for analyzing the collected data.
4. RESULT AND DISCUSSIONS OF THE STUDY
The researcher studied the demographic features of the online shoppers, experience of online
shoppers related with device used to make online purchase and the influence of smartphones in
online shopping.
5. DEMOGRAPHIC CHARACTERISTICS OF ONLINE BUYERS
The first part of the questionnaire contains the demographic details of the online buyers. The
data collected are presented in the Table 1 below.
Table 1 Demographic Characteristics
Demography Characteristics Frequency Percent
Gender Male 329 85.7
Female 55 14.3
Total 384 100
Age 16-25 109 28.4
26-35 230 59.9
Above 55 45 11.7
Total 384 100
Education +2/Equivalent 65 17
Graduate 245 63.8
Post Graduate 54 14
Others 20 5.2
Total 384 100
Occupation Employment 186 48.4
Business 59 15.4
Student 98 25.5
House wife 13 3.4
NRI 28 7.3
Total 384 100
Income 20000- 40000 208 54.2
40000- 60000 152 39.6
>60000 24 6.2
Total 384 100
Place of Living North 128 33.3
Central 128 33.3
South 128 33.3
Total 384 100
Residence Rural 139 36.2
Urban 245 63.8
Total 384 100
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- Shabeer V P and Dr. P V Basheer Ahammed
The above table shows that respondents were mostly male (85.7%) and only 14.3% females
are attended the survey as online shoppers in Kerala. From this statistics, it is clear that
compared to female population, male population is predominant in online shopping in Kerala.
The ages wise details of the respondents show that majority of the respondents (88.3%) in
the survey were aged between 16-35 age ranges (28.4% for 16-25 age group and 59.9% for 26-
35 age groups). Only 11.7% of the respondents are aged above 35 years. It clearly shows that
the younger generations of Kerala are more interested in buying through online shops.
The education wise data of the respondents shows that the majority of the online shoppers
are educated. 77.8 percent of the respondents are having graduation or above level of education.
So this data clearly indicates that the education level of people in Kerala have certain influence
on their interest in the purchase through online shops.
The occupation wise data shows that in Kerala those who were employees are more
interested in the purchase of products online (41.1%) compared to other segment. The next
highest percent of online buyers in Kerala are students (25.5%).
As per the information received through the survey, it shows that majority of the
respondents (54.2%) who buy online in Kerala are falls under the income group of 20000-40000
and 39.6% of respondents are 40001-60000 income groups. As the researcher not asked for any
income proof from the respondents, there may be chances of providing faulty information due
to the basic nature of people on not to disclose the actual income due to unnecessary fear of
leaking the information which may leads any trouble to them in future.
The researcher purposefully selected equal number of respondents in all regions of Kerala.
The survey data reveals that majority of respondents who make online shopping in Kerala
are resides in Urban area (63.8%) and the Rural respondents are only 36.2% of the population.
It is a clear indicator that in Kerala, urban population are more attracted with the new changes
in the marketing and shopping habits and interested in online shopping.
6. DEVICE USED TO ACCESS THE INTERNET/ PURCHASE ONLINE
The device used for making online purchase also matters in the growth of online shopping in
Kerala. Normally, Desktop, Laptop and Smartphones are the various devices used by the
consumers for shopping online.
The researcher checked which device is using the online shoppers of Kerala more for
accessing the internet and making their online purchase. Three options (Desktop, Laptop and
Smartphone) have given to the respondents to respond.
Table 2 Device used to access the internet/purchase online
Frequency Percent
Desktop computer 27 7
Laptop 109 28.3
Valid
Smartphone 248 64.7
Total 384 100.0
The above table reveals that among the online buyers in Kerala, 7% respondents are using
their desktop computers, 28.3% respondents are using their Laptop and a majority of 64.7% is
using their Smartphone for accessing the internet and making online purchase.
This study focuses on the influence of smartphones in the growth of online shopping in
Kerala. For the present generation of mobile users, the meaning of mobile phones also has
changed. Smartphones are become a fashion and a new life style among them. The multiple
uses of smartphones really attracted the mobile users towards it. Most smartphones in the
market have the access of high speed internet, high definition large display and can run third
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- Effect of Online Shopping In Retail Business of Kerala- Influence of Smart Phones
party applications. All the online shopping companies have their own mobile app for promoting
their web store.
7. RELATION BETWEEN GENDER AND DEVICE USED TO
PURCHASE ONLINE
The researcher further checked whether the device used to make online purchase have any
significant relation between the genders of the online buyers in Kerala.
Table 3
Gender Total
Male Female
Desktop 25 2 27
Device Laptop 98 11 109
Smartphone 206 42 248
Total 329 55 384
Value Df Significance
Pearson Chi-Square
1.406a 2 .504
The gender wise cross tab of device used to make online purchase also shows that both male
and female are using smart phone more for internet access and online purchase. The chi- square
test also shows that there isn’t any significant difference among the genders of the online buyers
in using the device to make online purchase in Kerala.
8. RELATION BETWEEN AGE AND DEVICE USED FOR ONLINE
PURCHASE
The researcher checked whether the device used to make online purchase have any significant
relation between the ages of the online buyers in Kerala.
Table 4
Desktop Laptop Smartphone
16-25 4 10 95 109
Age 25-35 15 77 138 230
>35 8 22 15 45
Total 27 109 248 384
Pearson Chi- Value Df Significance
Square 34.208a 4 .000
The above table shows that, in between the age groups, out of the 230 respondents aged in
between 25-35, a majority of 138 which is 60%, are using smart phones for internet access and
online purchase. It also shows that, in case of above 35 year old respondents, out of 45 online
buyers, a majority of 22 which is 49% are using their Laptop for the same purpose. But among
the age groups, when we take the percentage of respondents who buy online, out of the 109
online buyers of 16-25 age groups 87% are using smartphones to make online purchase.
The result again checked with chi square test to know weather the difference is significant
or not, and here the chi square value which is less than 5% shows that the difference is highly
significant. It means that there is significant difference between the age of the online buyers
and the device used to make online purchase among the e shopping consumers in Kerala.
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- Shabeer V P and Dr. P V Basheer Ahammed
9. RELATION BETWEEN OCCUPATION AND DEVICE USED TO
SHOP ONLINE
The researcher checked weather there is any relation between the occupation of the respondents
and the device used by them to purchase online for technological products in Kerala.
Table 5
Occupation Total
Employment BusinessStudentHouse wifeNRI
Desktop 13 4 8 2 0 27
Device Laptop 61 29 11 0 8 109
Smartphone 112 26 79 11 20 248
Total 186 59 98 13 28 384
Value Df Significance
Pearson Chi-Square
60.150a 10 .000
The table shows that, irrespective of occupational difference, the online buyers are not using
desktop so often for making online purchase. The business people are using laptop more for
making online purchase. All other segments are using smartphones more for making online
purchase. But it is to be noted that 40% of the employment class are using either laptop or
desktop for making online purchase.
The result again checked with chi square test to know weather the difference is significant
or not. Here the chi square value is .000 which shows that the difference is highly significant
and it means that the device used by the respondents to access the internet and making online
purchase and their occupation has significant difference. Based on the nature of jobs the
respondents are using different devices to shop online.
10. RELATION BETWEEN AREA OF RESIDENCE AND DEVICE
USED TO SHOP ONLINE
The researcher checked weather there is any relation between the area of residence of the
respondents and the device used by them to purchase online for technological products in
Kerala.
Table 6
Area of Residence
Rural % Urban % Total
Device Desktop 9 6.5 18 7.4 27
Laptop 27 19.4 82 33.4 109
Smartphone 103 74.1 145 59.2 248
Total 139 100 245 100 384
Value Df Significance
Pearson Chi-Square a
15.243 2 .000
The above crosstab shows that both the rural and urban respondents are using smart phones
more to purchase online. But when we take the percentages of the respondents it shows that
74.1% of rural people are using smart phones while it is only 59.2% in case of the urban people.
33.4% of the urban respondents are using laptop for online purchase while it is only 19.4% in
case of rural people.
The researcher then conducted a chi square test to check whether this difference is
significant or not. Here the chi square value is .000 which shows that the difference is highly
significant. It means that the device used by the respondents to access the internet and making
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- Effect of Online Shopping In Retail Business of Kerala- Influence of Smart Phones
online purchase and their area of residence has significant difference. The respondents who
lives in rural and urban area are significantly differ in using different devices for making their
online purchase.
11. SMARTPHONE AS A SHOPPING TOOL
The 150 respondents who were using smartphones for making online purchase were randomly
selected and asked to rank each variable in the order of preference from 1 to 5 against the
purpose of using smart phone as a better device for making online purchase.
Table 7
Sl No. Variables Weighted Mean Rank
1 Comfort in using 36 1
2 E shopping mobile App facility 28.53 4
3 Mobility while shopping 31.07 3
4 Strong and cheaper internet connectivity 19.4 5
5 Always in touch with the internet 35 2
The statistical analysis of the survey data by using the weighted mean score and there by
the rank shows that out of the five variable used to check the advantage of using smartphones
as the device to make online shopping, comfort of using the smart phone is the most powerful
motive. The smartphones ability to connect internet always, comes second rank. Mobility while
shopping, E shopping mobile App facility and Strong and cheaper internet connectivity are
coming in the respective ranks, also influencing the buyers to use smartphones for making
online purchase.
12. FINDINGS OF THE STUDY
1. The future of online business in Kerala is promising. Majority of the online buyers are below
35 years old
2. The male population is predominant in online shopping in Kerala compared to female buyers.
3. The urban consumers are more interested in online shopping compared to the rural consumers
4. The income of the consumers doesn’t have any influence in the online shopping habits.
5. The education of the consumers positively influencing towards buying online. Majority of the
online buyers have an education of graduation and above.
6. Majority of the online buyers are using smartphones to buy online.
7. Comfort in using smartphones is the most influenced drive towards buying online through
smartphones.
13. SUGGESTIONS
1. The online companies should concentrate more on attracting rural consumers towards online
shopping.
2. The mobile app should make more user friendly to attract more consumers towards online
shopping
3. Uneducated consumers are not so often purchasing through online. To overcome this, company
homepage should be clearer and easily understandable to the uneducated consumers also.
4. The aged consumers are not much attracting towards online shopping. The character font size
must be large enough to read for the aged consumers and the product picture display must be
clearer.
5. Online companies should make deliberate attempt to attract more female consumers by
providing ads or any other promotional activities.
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- Shabeer V P and Dr. P V Basheer Ahammed
6. As the online shopping habits increasing among the consumers, more and more retailers should
open a web store along with their traditional bricks and mortar retail shops.
14. CONCLUSIONS
The online shopping is now becoming a habit of consumers in Kerala for making retail
purchase. The number of online consumers is increasing day by day. Almost all categories of
products are now available in online shopping sites with comparatively at a lesser price. The
popularity of using smartphones also helped the growth of online shopping habits among the
consumers. The study reveals that majority of the online buyers in Kerala are using their
smartphones for making online purchase. The consumers feel more comfort while using smart
phones for making online purchase. It also has an advantage for the consumers in touch with
the internet always and they can make their purchase without wasting their valuable time.
Through the smart phones, the consumers can make their online purchase even when they
travelling. As majority of the online buyers are aged below 35 years shows that the future of
online business in Kerala is also very much promising.
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