GAP BODHI TARU

A GLOBAL JOURNAL OF HUMANITIES

( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.

IMPACT OF E-COMMERCE ON CONSUMER BUYING

BEHAVIOUR
Shana Shaikh
Assistant Professor, BMS, ZSCT’s Thakur Shyamnarayan Degree College, Kandivali (E),
Mumbai, Maharashtra, India
Email : shanashaikh0301@gmail.com
Contact No : 9820725175

Abstract
Through e-trading, the e-commerce industry is currently growing to be extremely large and expanding. The market
is greatly impacted by the E-commerce sector's explosive rise. The responses and purchasing patterns of customers
determine the success of e-commerce. The secret to success is a lower middle level of business, competitive pricing,
and doorstep delivery. Numerous studies demonstrate that this industry has outperformed traditional marketing
strategies by offering incentives to consumers, which has increased demand in this area significantly. Given that e-
commerce is generating enormous amounts of revenue from the Indian market, it is regarded as a prospective
market. The goal of this research is to examine the body of knowledge currently available on e-commerce and
associated topics. The study's main topics include the state of e-commerce in India, e-commerce and technology
adoption, e-commerce's socioeconomic effects, e-commerce and consumer purchasing decisions, and the advantages
and success of e-commerce. Technological advancements appear quickly and are quickly embraced by the market.
As consumers use technology more and more in their lives, their expectations may shift. Therefore, advancements in
e-commerce and its business model may be to blame for shifts in consumer purchasing patterns. This study aims to
comprehend the future demand for research on the influence of e-commerce on customer purchasing behavior and
the degree to which purchasing can be affected.

Keywords : consumer buying decision, e-commerce, e-commerce advantages, socio economic effect

INTRODUCTION

In the previous 20 years, the internet has grown significantly, and a global digital economy powered by
information technology has also emerged. Long-term internet development that resulted in a sharp rise in web
users and extremely fast internet connections, along with the development of new technology utilized in web
development, allowed businesses to improve and market their product and service images through websites.
Consequently, a growing number of consumers are shifting from traditional in-store purchasing to online
shopping due to the availability of comprehensive product information and better services. However, a growing
number of businesses have changed their marketing strategies after realizing that the shift in consumer behavior
is an inevitable trend. Recent studies have revealed an increase in online shopping, especially in the business-to-
consumer (B2C) sector. The advantages of the internet are the primary cause of the internet shopping industry's
quick development, while there are other factors as well. To begin with, consumers can enjoy several types of
ease when using the internet. It goes without saying that customers no longer need to go out in search of product
information because the internet allows them to search through web sites and compare prices across each site
to find the best deal. In addition, consumers may utilize products on the internet more effectively and efficiently
than they can through traditional channels, providing for their demands. Customers can obtain information
linked to consumption more quickly by using various search engines. These engines provide information in the
form of thorough written descriptions, visuals, and sounds, all of which aid in the process of helping customers
choose the best product choice. Nonetheless, there are some hazards associated with online buying for
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consumers, including those related to payment security and customer support.

The development of internet technology has made online payments a common method for making purchases
from the internet. Online payments boost consumer efficiency while lowering internet security due to their
virtual nature.
The terms "web based business" and "electronic trade" describe a kind of business transactions where data is
transferred via the internet. By definition, it encompasses a wide range of commercial endeavors that leverage
the internet as a medium for information sharing, money transfers, or both.
A. HISTORY OF E-COMMERCE: The invention of the telephone at the turn of the 20th century marked the
beginning of e-commerce. The term "e-commerce" refers to the process of connecting business communities and
digitizing company information. Electronic Data Interchange, or EDI, is widely recognized as the origin of e-
commerce. Big businesses have been funding the advancement of EDI since the 1960s. The 1980s were the only
decade in which it became widely accepted. The meaning of internet commerce has changed during the past
thirty years. The electronic facilitation of economic transactions via the use of technologies like Electronic Data

GAP BODHI TARU – Volume - VII 267

February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
 GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
Interchange (EDI) and Electronic Funds Transfer (EFT) was the original definition of electronic commerce. These
two technologies, which were first launched in the late 1970s, enable businesses to electronically share business
documents like purchase orders and invoices.

B. DEFINING THE PROBLEM

E-commerce is seen as a huge opportunity with a high success rate in India. There are a lot of big and small
enterprises in the market. Do they have a strong probability of succeeding and will they actually be in the market
for a long time? What expectations do customers have of them, and are they ready to satisfy them? Finding out
how the E-commerce platform influences customers' mindsets is the aim of the study.
C. RESEARCH GOALS
1. To better comprehend the state and tendencies of e-commerce today.
2. Identify the elements that affect consumers' visits to e-commerce websites.
3. To find out if the customer is familiar with online shopping.
4. To look into how e-commerce websites affect consumers' perceptions
D. EXPLANATION OF THE PROBLEM
We experienced many problems when we first started making purchases online. Millions of customers
worldwide are now able to access websites like Amazon, Flipkart, and other online shopping apps. Consumers
experience a range of problems, such as:
i) Defective items erode customers' mental health; ii) Prolonged delivery delays are another problem that ruins
consumers' peace of mind. iii) A customer's address might not have certain products or goods that they need. iv)
A customer's address might not have certain items or products that they need available.

REVIEW OF LITERATURE

Research on the role and impact of e-commerce in business and trade was carried out by Dr. Prafullkumar N.
Tayade in March 2020. A fundamental change in business is represented by e-commerce. This "disruptive"
innovation is fundamentally changing the way that business is done. A corporation or individual can do business
over a computer network, most frequently the internet, using electronic commerce, which is a type of business
model or a subset of a model. E-commerce is the exchange of money or data using an electronic network, usually
the Internet, for the buying and selling of goods and services. These can be consumer-to-business, consumer-to-
consumer, business-to-business, or business-to-business exchanges. In the context of online shopping, the
transactional processes that take place are referred to as retail. E-commerce is conducted through email, among
other means.
According to Drs. GAGANDEEP K NAGRA and R. GOPAL's research on factors influencing consumers' online
shopping behavior, food items account for over 55% of Indian consumers' total consumption expenditures (June
2013). No food spending has increased at a greater rate than food expenses by 22%, per an ORG poll. Customers
decide what to buy, when to buy it, where to buy it, from whom to buy it, and how much to spend.
However, there are a lot of variations in digital buying that have been noted because of the various characteristics
of customers as well as the kinds of goods and services available.Amazon and eBay have elevated the idea of
digital purchasing to unprecedented levels, and Pizza Hut has now opened an online pizza restaurant.
Digital retail sales have been booming since 1996. Online shoppers are typically better educated than brick and
mortar stores. Purchasing online makes more sense if you are more computer literate. According to Taher
Roshandel Arbatani and Alireza Mohammadpour, e-commerce opens up economies and improves national and
international communication by modifying business practices and creating new marketplaces. A new purchase
method that offers several advantages is e-shopping.

OVERVIEW OF THE STUDY

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The term "digital marketing" encompasses a wide range of activities including targeted, quantifiable, and
interactive promotion of goods and services via digital technology in order to attract, convert, and retain leads.
This study looks at how digital marketing affects e-commerce sites, which helps to understand the variables that
are important in the digital environment today, as well as promotional strategies and increasing awareness of e-
commerce sites. The study explains the following points:

A. COMPARISON BETWEEN ONLINE AND OFFLINE STORES:

Despite the rapid development of online shopping, particularly in the consumer goods business, traditional and
online consumer purchasing still differ significantly. In the Indian consumer goods sector, online sales accounted
for a very small percentage of total sales. Numerous factors could contribute to that, but the primary one is the
benefits found in both traditional brick-and-mortar stores and the internet marketplace; each has unique
features. For instance, traditional sellers offer easier parking and shopping experiences, let customers inspect
and read product reviews before making a purchase, and offer more direct customer support, electronically
exchange business documents including invoices and purchase orders. However, compared to an internet

GAP BODHI TARU – Volume - VII 268

February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
 GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
business, a traditional store sells fewer things at a greater cost of sale. By contrast, the weaknesses of the online
store also appear to be the benefits of the traditional store, and by comparison, we can discover that the
limitations of the traditional store are more likely to be the advantages of the online store. The history of the
internet and online purchasing makes it evident that many businesses employ e-commerce because of the
advantages of web selling over traditional brick-and-mortar stores and the rapid advancement of technology.
Additionally, the growth in personal usage has been a major factor in the development of online commerce. Very
little research have looked into the effects of online purchasing on customer behavior. Previous research has
been more marker-focused, addressing issues like how to create an online marketing channel that is more
effective than a conventional offline one. As a result, this study will draw on earlier research from literature
reviews and concentrate on the effects of online shopping on consumer behavior to develop a thorough analytical
framework that demonstrates the critical component of business and marketing to meeting customer needs and
a thorough understanding of online consumer behavior as a guide for any e-commerce company developing
marketing strategies.

B. INTERNET'S IMPACT ON CONSUMER BEHAVIOR

Both internal and external factors might have an impact on consumer behavior. Internal elements typically
originate from the consumer's thoughts, whilst external factors are derived from the surrounding circumstances.
Numerous things may impact the behavior of consumers. Warner classified the external effects into five
categories: marketing, culture, subcultures, reference groups, technology and public policy, and demographics
and socioeconomics. Many psychological processes, such as attitudes, learning, perception, motivation, self-
image, and semiotics, are among the internal influences (Malcolm). Besides these, Sheth (1983) proposed that
there are two categories of customer motives when they shop: functional and non-functional. The primary
functional motivations are time, location, and customer demands. Examples of these include time-saving one-
stop shopping, the environment of the shopping center, which includes free parking, lower prices, and a large
selection of products. The non-functional factors, like the store's brand name, are more closely associated with
culture or societal ideals. Purchasing necessities is the only goal of conventional purchasing for the consumer.
The seller's advertising and marketing will have an impact on this behavior since it draws customers in and
encourages them to make purchases. A portion of the new products will then be used at home.

i) Internet Shopping :
While there are many similarities between online and traditional shopping, there are also some differences. For
example, while traditional shopping offers customers a more comfortable shopping environment and higher-
quality products, online shopping offers convenience and interactive services (Jarvanpaa and Todd, 1997). (Lee
and Chung, 2000). Both traditional and online shopping malls aim to enhance their services by exchanging
knowledge. Conventional shopping malls aim to improve convenience by adding more parking spaces, counters,
and locations near residential areas. Meanwhile, online shopping malls use virtual reality (Lee, 2001) and 3D
techniques (Miller, 2000) to enhance their product presentation. Online security, privacy, and trust will be
covered in the sections that follow. First, the research will describe the nature of online buying. Next, an e-
commerce website will be mentioned to help understand its essence. The background information and
conversations about online buying that follow will serve to establish the groundwork for future scholarly
investigations.

ii) Convenience :
Since most researchers and customers agree that the primary reason for shopping online is convenience, the
internet offers a great deal of convenience for consumers (Wolhandler, 1999). Owing to the feature of the
Internet that enables customers to shop online whenever and wherever they want, including from home or the
office, some time-pressed consumers turn to the Internet in order to save time when searching for products in
physical stores. The Internet also provides a number of useful time and money-saving options. For instance, there
are no transportation expenses because customers do not need to visit the actual store.
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iii) Technology :
Technology advancement, which is crucial to the growth of online commerce, is primarily responsible for the
convenience offered by the Internet. Over the past ten years, businesses have come to understand how new
technologies could have a significant impact on online purchasing. As a result, many significant technologies,
such as virtual reality and 3D printing, have been utilized by businesses to gain significant competitive
advantages.Better product information is now available online thanks to information technology, which aids in
consumers' decision-making. The expansion of the Internet and the rate at which it is growing have both
accelerated over the past ten years thanks to a wide range of polls regarding Internet use. The number of Internet
users in Great Britain has climbed to 22.7 million, accounting for 48.4% of the adult population, according to
BMRB International (2004) and GVU's WWW 9th User Surveys (1998). Approximately 53% of Internet users
said that their primary usage of the Web is for shopping. Additionally, the China Internet Network Information
Centre (CNNIC) published a statistical study on the development of the Internet in China in July 2006. According

GAP BODHI TARU – Volume - VII 269

February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
 GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
to this survey, about one-fourth of Internet users have ever done any online shopping, with 30 million users
regularly making purchases online.Given that both studies indicate an increasing number of Internet users prefer
to make their purchases online, the security of online payments will undoubtedly play a major role in impact
online retail sales.

iv) Customer Trust in Online Shopping :

Today's digital economy is changing, and one of the most important aspects is consumer trust in online shopping.
Consumers are becoming more and more dependent on e-commerce platforms for their buying needs as online
transactions continue to dominate retail. Notwithstanding, a number of modern elements impact trust in these
sites. Internet shoppers' propensity to shop online is greatly impacted by the persistent worries about
cybersecurity, data privacy, and the possibility of online fraud. Some important factors that determine trust are
the standing of internet retailers, the efficacy of security measures put in place, and the openness of data handling
procedures. Consumers rely on the experiences and opinions of their peers, therefore the rise of user evaluations
and social proof on internet platforms also plays a role in building trust. Nowadays, companies must prioritize
strong cybersecurity, open communication, and proactive attempts to resolve customer complaints in order to
manage these trust-related dynamics. Maintaining the expansion of e-commerce and creating great experiences
for customers in the digital sphere depend heavily on the building and upkeep of trust in online buying.

RESEARCH METHODOLOGY

Using secondary data analysis, research techniques for examining how e-commerce affects customer purchasing
decisions entails a systematic approach to data gathering, processing, and interpretation. Using already-existing
data sources eliminates the requirement for primary data collection and permits a thorough analysis of the topic.
The main goal of this study is to comprehend how customer purchasing decisions are influenced by the
emergence of e-commerce platforms. The study gives a comprehensive analysis of pertinent literature in order
to develop a theoretical framework and pinpoint the main factors influencing customer behavior in the context
of e-commerce.
Accurate academic journals, market reports, and industry publications had provided the secondary data for this
study. Research on customer trust in e-commerce, the effects of digital marketing, online purchasing patterns,
and how technology is influencing the e-commerce industry has been covered in the review of the literature. The
use of secondary data permits a thorough investigation of the subject and a thorough examination of the different
elements affecting consumer purchasing decisions. Furthermore, the study will investigate any changes in
customer preferences and behaviors that might have resulted from the growing popularity of online shopping.
A systematic and thematic method has been used to analyze the secondary data. The gathered data is arranged
in accordance with major topics, and correlations between various studies will be found. To find patterns,
correlations, and discrepancies in the data, comparative analysis has been done. The results is analyzed in light
of the body of current research, offering perceptions into the complex interplay between consumer purchasing
patterns and e-commerce.
In summary, this study's research technique looks into how e-commerce affects customer purchasing behavior
by combining a detailed literature review with secondary data analysis. This method leverages prior knowledge
and insights from multiple sources to enable a thorough investigation of the subject.

CONCLUSION

This study primarily focuses on Internet-related issues and investigates those that influence consumers' online
shopping behaviors. It begins with the state of Internet development as it stands today and goes on to discuss
the history of marketing as representation and how it differs from traditional retail establishments to illustrate
how Internet purchasing has evolved since e-commerce gained traction. Three primary areas have been covered
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in this literature review chapter: online and traditional consumer behavior, as well as Internet shopping. Every
section begins with the premise and then moves on to discuss other points of view. The study focuses on online
consumer behavior, including background information, buying habits, and online security, privacy, trust, and
trustworthiness, as well as the characteristics of online shopping and e-commerce websites. These elements
were investigated in order to determine how they affected online customer behavior. Furthermore, earlier
studies were consulted in order to aid in a more thorough comprehension. In order to pinpoint the possible
causes, the customer's decision-making process for the purchase was also looked at. The most crucial element in
assisting clients in locating the right goods or services for their requirements is information searching. In order
to maximize the effectiveness of information search, online retailers must thus upgrade and improve the
information supporting their products, such as by offering highly detailed product information and utilizing
internal search engines. Customers give the reputation of the e-commerce website and the payment security
during the evaluation stage more consideration than they do at the purchasing stage. During the post-purchase
phase, the most critical aspect is after-services. Online retailers should be particularly aware of the Internet-

GAP BODHI TARU – Volume - VII 270

February 2024
Special Issue on “Viksit Bharat - Towards Five Trillion Economy”
 GAP BODHI TARU
A GLOBAL JOURNAL OF HUMANITIES
( ISSN – 2581-5857 )
Impact Factor: SJIF - 5.551, IIFS - 5.125
Globally peer-reviewed and open access journal.
related aspects that either facilitate or hinder online consumer behavior. By using the right marketing messages,
they may assist customers in completing purchases and enhance their overall performance.

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GAP BODHI TARU – Volume - VII 271

February 2024
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