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E- SHOPPING: A SHIFT FROM MARKETPLACE TO MARKET SPACE

Dr. B.B Singla*
Pawan Kumar**

ABSTRACT

With the rapid development of network technology, the Internet has strongly impacted the
worldwide marketing environment. With the development of the Internet and the increase of
online shopping, it becomes important to explore the dimensions of online shopping. The studies
found that Reputation of the retailer, website design, perceived ease of usefulness, perceived
ease of use, offline-online integration has positive relation in maintaining customer loyality. It
also reveals that online shopping is increasing day by day in the developing countries like India
etc.













* Asst Prof., School of Mgt Studies Punjabi University, Patiala
** Asst. Prof., Vidya Sagar College of Mgt and Tech, Patiala
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INTRODUCTION
Buying and selling online introduces the largest revolution in retailing since the first
department store was opened. The principle difference is that this store covers the planet.
-Anonymous
Internet shopping has grown almost five-fold since 2000. It still only accounts for just over three
per cent of total retail sales but this share is higher in certain sectors. Nearly two-thirds of
consumers are internet users and over half of these had used the internet to make purchases.
Convenience of use is an important factor in purchasing online but concerns about security of
payment and delivery arrangements are seen as negative aspects of the internet. The growth of
broadband access has been an important driver of change both for consumers and for business.
The speed of response available has been an important factor in the growth of search engines and
price comparison sites. Traditional retailers have responded to the growth of internet sales by
successfully developing their own online businesses. Higher computer literacy makes internet
shopping more attractive. Their familiarity with the internet also makes them better placed to
identify and take advantage of lower priced products. The internet provides an alternative
shopping channel to traditional retailing. The increased availability of information on the internet
is generally a significant benefit to consumers and induces them for internet shopping.
Why Buy On the Internet
According to Kotler (2000) in the field of business, change is occurring at an accelerating rate.
Today is not like yesterday and tomorrow will be different from today. Continuing todays
strategy may be risky; so is turning to a new strategy. There is a continuous push by the global
forces on everyones business. Technology will continue to advance and amaze us. About 15
years ago, commercial use of internet was restricted to only few organizations. In 1994-1995,
internet commercial explosion took off. Over 150 million people worldwide have become
internet users since 1994(Hanson, 2000). The coming of internet really transformed the way
business was being done, especially in the field of marketing. As there has been a paradigm shift
in the lifestyle of consumers. Today consumer is busy and it is not possible for them to shop
physically. Internet taught the marketers, how to sell the product electronically. The internet
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offers the marketers a lot of benefits as a new communication and distribution channel. The
development of the Internet has strongly impacted the worldwide marketing environment. The
Internet has also generated enough interest in buyers for online shopping because it is easy and
convenient way of shopping.
The Internet is used everyday by a wide variety of people for several functions. More and more
people gravitate towards using the Internet more intensively as the accessibility of technology,
the availability of information, and the ability to interact through the Internet increase and
evolve. Obvious capabilities of the Internet include avenues for gathering information,
purchasing a product, or rendering service. But today it has taken a new shape. It has not only
created the awareness among the people in a nanosecond pace but its evolution of technology has
changed the traditional way of buying. The arrival of the internet as a multifaceted tool has
changed the buying behaviour of the individual. The Internet, and, more specifically, the Web,
has provided a brand new space in which exchange relationships can be developed in computer-
mediated environments that allow two-way interactive communication both between the parties
themselves and between each of the parties and the medium itself. This technology gives the
consumer an unprecedented transcendental role in the final result of the exchange relationship,
since he is actively involved in the firms value creation process.
The latest expansion of internet is driven by marketing initiatives as it provides product and
product information to the potential customers. Internet applications have played an important
role in the developments of online shopping in the last decade. It offers convenience, choice,
availability and lower prices. And each one of these elements remains a valid reason why the
majority of consumers are attracted to E-shopping.
Electronic shopping is defined as a computer activity/exchange performed by a consumer via a
computer-based interface, where the consumer's computer is connected to, and can interact with,
a retailer's digital storefront through a network
E-Shopping is one such marketing service which is available to the consumers uninterrupted 24
hours a day/ 7 days a week from any location where you have the internet access. The popularity
of this medium of exchange has allowed the existence of a free market with intense competition.
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With the success of online retailers like eBay and Amazon.com etc combined with low start up
costs, the industry has expanded rapidly. Electronic Shopping have begun to demand market
information that allows them to focus their marketing efforts to maximize traffic and
consumption. Specifically, to identify motivating factors that lead to online buying and customer
retention. The advancement in Internet technology allows for the expansion of options beyond
the traditional methods that may be more time consuming. Having to physically gather
information is alleviated and the customer is better able to efficiently use their time. For instance,
instead of having to physically visit different stores, to compare prices or relying on circular
pamphlets in newspapers, the consumer is able to search and retrieve the needed information
through the Internet. As Internet usage rises, firms are beginning to realize the importance of
better understanding their online customers.
Today electronic shopping plays a major role in the world's economy and is expected to continue
in the future. Electronic shopping has become more popular and marketers are increasingly
interested in new web technologies. According to Business Standard dated August 17, 2009 a
recent survey conducted by MasterCard Worldwide revealed that Indian consumers are using
internet more frequently for shopping. MasterCard worldwide recently published its latest
Insights Report, Economic Crisis and Preference for Online Shopping in Asia/Pacific, Middle
East and Africa which shows that in India the average frequency of online purchases increased to
2.9 in fourth quarter of 2008, up from 2.6 during the same quarter in 2007. The survey shows
that In India, 54 per cent of the respondents had used internet for shopping. The top three most
popular online purchases included airline tickets (54 per cent), home appliances and electronic
products (48 per cent) and CDs/DVDs/VCDs (44 per cent). When it came to impulsive shopping,
Indians seemed to prefer home appliances and electronic products (51 per cent) and
CDs/DVDs/VCDs (44 per cent).Interestingly, among all the markets surveyed, India is the only
one where the 18-29 year age group has the highest average spend on online shopping. The
majority of the online shopping conducted in the region was planned, with 83 percent of online
shoppers admitting that they tend to plan their shopping in advance and conduct research on their
planned purchases. Most online shoppers either bought items impulsively hardly ever (36
percent) or just a couple of times (38 percent). The top reason for impulsive buying was the
discounted prices (67 percent) that online channels afford. Online shopping is growing in
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popularity as consumers realize the convenience and ease of shopping online. As businesses look
to grow their online retail presence, they need to be aware of the preferences and concerns that
drive online shoppers. One key reason for shoppers being motivated into online purchases may
be the ability to compare prices across multiple outlets hence achieving the important objective
of value for money.
REVIEW OF RELATED LITERATURE
A research involves an in depth knowledge of the key factors which are important to the study.
Various libraries and institutes in the region were visited. The available related literature in these
libraries and institutes was studied which proved to be very useful in getting an insight into the
main objectives of the study and in finalizing the methodology. Some relevant studies are briefly
discussed below.
Maigan and Lukas (1997) studied on the consumer perception towards e-shopping. The study
found that internet shopping involves more uncertainty and risk than traditional shopping.
Consumers unwillingness to provide their credit card information over the web has been cited as
a major obstacle to online purchases.
Kargaonkar, Wolin (1999) explored a study on multivariate analysis of web usage and it was
found that gender and age to be significantly correlated to online shopping. In this study it was
found that online shoppers are more male and often young. Males were also found to use the
internet for downloading and purchasing activities to a greater extent to females.
Lohse and Spiller (1999) studied on the online shopping and it was found that online shopping
is a result of convenient access to greater amounts of information that enhances customer
decision making and increases market penetration for the merchants.
Chase and Franson (2000) in one of their study claimed that internet shopping is no different
from any other innovation. It is simply a new/innovative method of purchasing products.
Companies with online stores might be very interested to learn how innovative their customers
are.
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Lee and Turban (2001) studied on trust in internet shopping and it was found that lack of trust
is one of the commonly cited reasons as to why the consumers do not prefer an online purchase
and it plays a significant role in facilitating online transactions. This might be because in an
online environment the consumers have no physical interaction with the seller. So website plays
an important role to gain customers trust online.
Blackwell(2001) studied the customer investigation on e-shopping and his study revealed that
the study of consumer behaviour is a complex and broad subject which encompasses the factor
such as demographics, lifestyles, personality, values, culture and family which play a part in
consumer behaviour decision making process.
Kim & Lim, (2001) conducted the study on online shopping and in his study it has become quite
clear that in order to survive and be profitable, online businesses must pursue the fundamentals
of good retailing. One of these principles is knowledge about existing and potential customers
and their preferences Retailers must pay attention to the target market's perceptions, attitudes,
and behaviour rather than the technological characteristics of their websites.
Childers (2001) studied on attitude of students for online shopping and it was found that the
degree of interactivity that a Web site offers is a strong factor in support of stabilizing this
relationship, because experiential shoppers usually find more enjoyment in interactive
environments than in pure text environments.
Koivumaki (2001) conducted a study on online shopping and the influence of online shopping
on the consumer buying behaviour. The study propounded a positive relationship between the
online shopping benefits and the frequency of purchases made.
Sharma, Gupta and Manhas (2002) in one of the article entitled Internet marketing:
Opportunities and Challenges found that internet marketing will add a new dimension to the
concept of marketing. Due to the concept of internet marketing, there is practically no
geographical bar for the company. E-shopping is one such marketing service which is available
to the customer uninterrupted 24 hours a day and 7 days a week.
Forsythe (2002) conducted a study on e-shopping and the study showed a positive and highly
significant relationship between perceived benefits of Internet shopping and both frequency of
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shopping and amount spent online. Consumers characteristics such as personality nature, online
shopping benefits and perceptions have also been found to influence consumers online shopping
behaviour and online shopping rate.
Huizingh & Hoekstra, (2003) had explored the study on the e-shopping and studied many
factors that determine why customers return to a store or web-site. The study found that It has
been shown that longer lengths of time spent online by consumers increases the likelihood of
consumers revisiting a website or becoming customers by buying a product As such, designing a
website in such a way as to retain customer attention and satisfaction, increases the likelihood of
creating repeat customers.
Halstead and Becherer (2003) emphasized in their study that internet marketing is a field which
is going to grow and the online auction concept may be defining a totally new and unique
distribution alternative. The study found that people shopping on the internet want delivery of
their purchase quickly and easily. Speed and convenience are the two driving factors essential for
online buying.
Changchit & Vokurka, (2003) studied on understanding customer satisfaction factors can
increase the probability of attracting new customers and/or retaining existing customers. A study
reported that customers expressed that "customer service" was a key factor in their decision to
shop at a store or revisit the website.
Darshan Parikh (2006) explored the study on "profiling internet shoppers: A study of expected
adoption of online shopping in India" and the study concluded that the success of internet
auctioneers like e-bay, and Bazee etc has demonstrated that the online medium is a viable
channel for both traditional and innovative business exchanges between the retailers and the
customers. Other factors such as the continuous growth in the internet users and broadband
subscribers and the rapid pace of technological improvements and innovations hold the promise
of greater acceptance of the digital medium by consumers.
Virdi, Puri, Modi, Sehgal (2007) studied on the pragmatic buyers or Browsers? A study of
online Buying Behaviourand their study found that online surfers, age, income and profession
do have a significant impact on the buying behaviour and the security concerns over the misuse
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of credit cards makes people averse to the idea of online shopping. It was also found that
spending power of the respondents varied significantly among the cities surveyed and it is
proposed that the website should be made more appealing, exhaustive and should support a
certificate of authenticity to generate better responses to online shopping.
Lee (2008) studied on online consumer and their buying behaviour.The finding of his study
illustrates how a high proportion of negative online consumer reviews can elicit a conformity
effect, with consumers showing a tendency to conform to the perspective of the negative reviews
when the proportion of negative reviews increases.
Pooja Mordani (2008) explored the study on investigation of consumers perception towards
internet based e-shopping and the study involved an experiment in which the respondents were
asked to go through the online shopping process and relate their experiences. The study found
that the positive experience with a website plays a vital role in forming consumers trust while
shopping online and if consumers trust the website then they will perceive ease of use, perceive
enjoyment and perceive the website to be less risky which would finally culminate into an
intention to transact with the website.
Pooja Mann, Nidhi (2008) studied on the role of internet in marketing and her study found that
the internet marketing offers a number of advantages hence it must be used with utmost
precaution along with other medium of approaching the target customer. Internet marketing is
finally evolving in a much more constructive direction.

SIGNIFICANCE OF THE STUDY
As the number of people using the Internet for their shopping steadily rises, it is increasingly
important for retailers to understand why consumers decide to buy products online or offline.
The online growth rates still indicate that the online channel will play a more profound role in
consumers shopping activities. Inarguably, online channel present different shopping
experiences even when the same products are purchased. Hence there is a lot of potential
emerging in the market for the companies to study the impact of E-shopping in the current
marketing environment.

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OBJECTIVE OF THE STUDY
This paper examines the various dimensions of online business in retaining customer loyality and
emphasizing on the significance of online shopping so as to better understanding of the customer
and helps in formulating strategies for the marketer.
DATA AND METHODOLOGY
In the current study, the exploratory research design was used to obtain the relevant results. The
secondary data was collected from various literature, journals, online websites etc.

DIMENSION OF E-SHOPPING
Customer loyalty is a multi-dimensional construct that has been defined in a variety of
ways by different researchers depending upon the focus of their study. For instance, Dick
and Basu (1994), and Andreassen and Lindestad (1998) defined loyalty in terms of
customers attitudes while others (Gwinner et al., 1998; Soderlund, 1998) focused on
customers behaviour towards the service providers. Proponents of attitudinal loyalty
argue that behaviorally loyal customers would switch loyalty for another service provider
that provides better service, whereas, attitudinally loyal customers have an attachment for
the service provider and are not easily swayed away by competitors providing better
service. This view of customer loyalty is in line with those of Oliver (1999) and
Butcher, Sparks and OCallaghan (2001) who suggest that loyalty is an attained state
of enduring preference or an enduring psychological attachment of a customer to a
particular service provider.
Higher level of satisfaction will lead to higher levels of customer loyalty
Loyalty. Loyalty is defined as a deep commitment of the customer to a particular brand, website,
or service provider when alternative options are available in the market (Shankar, Smith and
Rangaswamy, 2003). In this study, loyalty is considered in terms of the extent of customers
allegiance, preferential repeat purchases, resistance to competing offers, and defense or
promotion of a website or service provider. Allegiance refers to the length of time a customer has
been purchasing from a particular retailer.

The design and features of the website is positively related to higher level of
satisfaction.
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Website Design and Features. A website is a key component of the online marketing strategy
thus, great care is required in designing it to serve the target market effectively and efficiently.
This requires consideration of elements such as - ease of navigation, aesthetics, content,
accessibility, and features such as personalization, customization, customer self-care and
communities. All these elements in combination will directly influence customers experience
with the site, and ultimately their satisfaction and loyalty. Glazer (1991) suggested that the
content of the website plays an important role in the satisfaction of the visitor because if visitors
fail to find what they are looking for, they may not revisit the site. It is not only the content that
is a relevant consideration but also how it is represented and how easily it can be found, the
combination of graphics, animation, text, etc.

Higher level of perceived usefulness is positively related to satisfaction
In the context of Daviss (1993) definition, perceived usefulness is defined as the degree to
which the customer believes that the website would provide all the required information. The
level of perceived usefulness directly affects the satisfaction. The website content could also add
to the perceived usefulness. Glazer (1991) suggested that the content of the website plays an
important role in the satisfaction of the visitor because if visitors fail to find what they are
looking for, they may not revisit the site.

Higher level of perceived ease of use is positively related to satisfaction
Davis (1993) has defined perceived ease of use as the degree to which a person believes that
using a particular system would be free of effort. A study by Venkatesh and Davis (2000) has
found positive correlation between perceived ease of use with website adoption.

Reputation of the retailer is positive relation in online shopping
Reputation of the retailer plays an important role in creating awareness of the website and in
attracting first-time visitors. Repeat visits will depend on the extent to which the website matches
the expectations of the visitor. Reputation is built through the quality of the product offered, the
quality of customer service, delivery, returns, pricing policies, the security and privacy of the
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website in collecting and protecting customers personal information, the size of the company,
and the extent to which the company is known for keeping its promises. Reichheld and Schefter
(2000) contend that consumers do not generally enter into a purchase transaction until they
develop confidence in the integrity of the retailer.

There is a positive relationship between the online and offline integration of
business and the level of satisfaction.
Online and Offline Integration. Consistent with the notion that customer utilize multiple
channels to acquire the products and services they need on a daily basis imply that online
vendors must provide them with the option to click, visit or call as they please. The idea is to
give the customer the best of both worlds rather than the best of either world. Both online and
offline channels have certain unique advantages but when they are combined together, it could
substantially enhance customers experience, satisfaction and loyalty to the service provider. For
instance, a customer may research a product online but visit the offline store to physically
examine the product and may choose to either buy it at the physical store or online at a later time.
Similarly, a customer may buy a product online but may prefer to return it to a physical store.
The arguments in favour of online and offline integration have been strongly defended in the
literature (Kim et al. 2004), and the firms implementing this strategy have been found to enjoy
higher performance (Zettlemeyer, 1996).
WHY PEOPLE GO FOR ONLINE SHOPPING?
People prefer online shopping because of its speed and ease of use. Some issues of concern can
include fluctuating exchange rates for foreign currencies, local and international laws and
delivery methods. To shop online has never been so easy and fun. For this you need to find all
the stores for everything you want to buy in one place. Online shopping is very popular among
most of the Internet users while mostly web users prefer to shop online. When one decide to shop
online then he/she start browsing for the online stores according to their desire and needs. Online
shopping is the process of buying goods and services from merchants who sell on the Internet.
Since the emergence of the World Wide Web, merchants have sought to sell their products to
people who surf the Internet. Online shopping is great for toys, books, etc. But I cant stand it for
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things that must be tried on. If you want to shop for good quality brands on chipset price then
ShopinSummer is the place for you. It is the first cheapest online shop that provides all kind of
clothes, shoes, bags, perfumes and other accessories for women, men, and kids. And the most
amazing thing about this store is that all the accessories are on affordable prices that any one can
afford. And if you are looking for some imported quality of cloths that are imported from Asian
countries you can also get these from here. All the seasonal clothes are available here on the
ShopinSummer online store. So if you are confused that which online store you should chose for
your accessories shopping, good quality brands and on affordable prices then you must visit
ShopinSummer. If you are browsing for best online stores but youre confused that which you
should choose for online shopping then shopinsummer is the perfect place for you because we
know exactly what our customer demands!
Advantages of online shopping (The economic times)
E-shopping is increasing day by day & Indian netizens are world's third biggest online
shopper, means more scope of earning money online.
Next only to Turkish & Irish e-shoppers, Indian netizens have emerged as the Third
biggest Credit Card users globally for online purchasing.
Payment by Credit Card is very easy way for online purchasing.84% of Indian online
shoppers have used their credit card for transactions.
Still we are not number one because 91% Turkey people & 86% Ireland people used
credit card for online purchasing. If more & more people enter in online business then it is
possible that Indian netizens are on top.
You cannot avoid use of Internet; it is necessity of today's world. More than 85% of
Internet users in the world are purchasing goods or services online.
60% of global online consumers have used credit card for recent online purchase. More
than half or about 53% of global online consumers used a Visa Card.
As the online purchasing is increasing so the market of Credit Card also. You can offer
credit card to your visitor by Affiliating with such companies.
You may believe or not but it is true that globally more than 50% of Internet users have
made at least one purchase online in past month. It means more hopes for home based business
entrepreneurs.
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41% online consumers purchased Books in past three months, 36% purchase clothing's,
accessories, shoes & where as video, DVDs games, air line tickets constituted about 24%.
You all know about Affiliate Marketing, now know the top 10 online retailers, they are,
eBay, Amazon, Target, Wal-Mart stores, Best Buy, Circuit city, Sears,Toysrus,Overstock.com &
J C Penney. As per my knowledge eBay & Amazon allows you to become their Affiliate so, you
have popular product & popular retailer, now it depends on you how to use this information.
Within 2 years, numbers of global online shoppers has increased by around 40% from
627 million to 875 millions.
THE BOOMING MARKET OF ONLINE SHOPPING
Deepa Thomas(E-bay head) said as India set to be among the top 10 global e-commerce hubs by
2015 and having the 4
th
largest number of internet users in world( The Economic times dated 5-
10-2011), the penetration of the technology of Internet into our lifestyle has changed the way we
think & live and the extension of festive greetings and wishes, on special occasion or festivals, to
dear ones living worldwide is not an exception to this. From the past few years, there has been an
upward swing in the online shopping and the preference of sending Rakhis and gifts using
Internet has grown phenomenally. Some of the reasons behind this trend has been highlighted
here as under:
In todays fast growing world everyone is on the move for studies or profession and
sometimes they need to stay away from brothers or sisters in abroad thus unable to meet
each other personally.
Sending related gifts, brothers and sisters can send a surprising delight too.
Online shopping provides so much ease and convenience to the users. One can find for
numerous categories of Rakhis and gifts and send them with few clicks to anywhere in
the world.
The online shopping also provides a hassle-free and timely delivery of gift items right at
the door steps of beloved ones.
Shopping through net saves lots of time in comparison with the physical shopping like
going to different market places and then selecting something. With online shopping one
can get the purchasing done from his/her home or office.
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CONCLUSION
This paper addresses a need in the literature for more rigorous conceptual frameworks to better
understand the dimensions of online shopping. The proposed study underscore that the facets of
online shopping should be properly understood along with other for developing an effective e-
business strategy. From a practical perspective, this study provides a stronger basis for e-
business managers and entrepreneurs to design e-loyalty strategies.

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